Beasley Reports 4Q Earnings Rose 23.5 Percent

Beasley Broadcast Group, Inc. today announced operating results for the three and twelve month periods ended December 31, 2014.

On December 1, 2014 the Company completed an Asset Exchange with CBS Radio Stations Inc. (CBS Radio) whereby Beasley exchanged a total of five radio stations in the Philadelphia and Miami-Fort Lauderdale markets for a total of fourteen CBS Radio stations in the Tampa-St. Petersburg, Charlotte and Philadelphia markets. As a result of the transaction, in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company is required to report the five stations that CBS Radio received under “discontinued operations” for the 2014 fourth quarter and full year, despite having operated them through November.

Commenting on the results, George G. Beasley, Chairman and Chief Executive Officer, said, “On a reported basis, fourth quarter net revenue from continuing operations rose 23.5% and SOI increased 14.6%, while operating income of $1.8 million was impacted by $1.7 million of transaction and termination expenses related to the Asset Exchange and otherwise would have compared favorably with the $2.8 million in the comparable year ago period.

George G. Beasley

“However, given the required accounting treatment for discontinued operations, the results include only one month of operations from the stations we received in the asset exchange, while excluding the results of the stations we gave up in the transaction. As a result, we believe a pro forma presentation, which assumes the asset exchange occurred on January 1, 2013, better reflects the operating results. On a pro forma basis, fourth quarter net revenue decreased 4.3% to $28.9 million while SOI declined 8.0% to $9.2 million.

Importantly, while the fourth quarter pro forma presentation allows for a comparison of the same stations during both periods, it does not reflect our recently initiated and planned format and personnel changes in Tampa as well as expense reductions in Tampa and Charlotte, the benefits of which we expect will be reflected in our results as we move through 2015 and into 2016.

“With respect to the new markets we now operate in, Tampa-St. Petersburg is the nation’s 18th largest radio market when ranked by revenue while Charlotte is the nation’s 24th largest radio revenue market. The six station cluster we now operate in Tampa-St. Petersburg is already competitive on a revenue share basis, and we have initiated several strategies to capitalize on the significant upside in this cluster.

“The seven station cluster we acquired in Charlotte is a market revenue share leader, so our strategies in this market to drive SOI growth are focused on extending successes and driving efficiencies in operations and processes. Overall, our post-closing integration, costefficiency and operating plans in both markets, combined with our legacy focus on targeted localism and delivering quality programming, effective online marketing solutions and dedicated service to the listeners and advertisers in these markets are proceeding on schedule.