Beasley Reports Revenue Increase

Beasley Broadcast Group today announced operating results for the three month and nine month periods ended September 30, 2017.

The pro-forma results reflect the Company’s legacy Beasley Broadcast Group broadcasting and digital operations and the results from the Greater Media stations, excluding Charlotte and Greenville-New Bern-Jacksonville stations.

The $31.2 million, or 112.4%, year-over-year increase in net revenue during the three months ended September 30, 2017, reflects the operation of stations in Boston, Philadelphia, Detroit and New Jersey acquired from Greater Media, partially offset by the disposition of the Charlotte and Greenville-New Bern-Jacksonville stations and the impact on the comparison of political revenue in the year ago quarter.

Commenting on the financial results, Caroline Beasley, Chief Executive Officer, said, “The operating and financial benefits of the Greater Media transaction are becoming more visible as we continue making progress on our synergy realization and integration initiatives, which are focused on driving SOI margin expansion. Pro forma net revenues were flat compared to the prior year period, despite the non-recurrence of $0.6 million in political revenue, while we reduced pro forma station operating expenses by 5.2% or $2.3 million. As a result, Beasley generated a 16.9% increase in third quarter pro forma SOI with SOI margins reaching 27.9%, up 400 basis points from 23.9% in the year-ago period and up 130 basis points on a quarterly sequential basis from 26.6% in the 2017 second quarter.

Caroline Beasley

“Throughout the third quarter, we continued to actively manage our local radio broadcasting platform while implementing our operating disciplines at the acquired Greater Media stations. We remain focused on strong local programming to support our goals of ratings and market leadership. Revenue at Beasley’s combined clusters rose 0.1% in the third quarter, outperforming the overall markets, which declined 0.8% according to Miller Kaplan. Of particular note, our Detroit cluster generated double-digit revenue increases and our Philadelphia cluster rebounded from a transition-related revenue decline earlier this year to an increase of 1% in the third quarter. These increases were offset by declines in our Tampa, Charlotte and Las Vegas clusters.

“Our total outstanding debt as of September 30, 2017, was approximately $219 million, compared to $225 million at June 30, 2017. We made voluntary debt repayments of $6.0 million in the third quarter, resulting in a total $49 million reduction in debt year-to-date."