Beasley Earnings: YoY Revenue Declines Are Moderating

Beasley Broadcast Group, Inc. today announced operating results for the three- and twelve-month periods ended December 31, 2020.

The results reflect actual results including the operations of WDMK-FM in Detroit since its acquisition in August 2019.

1. Operating income, net income and net income per diluted share reflect a $4.4 million gain on dispositions, $3.6 million in other operating income and $2.2 million of non-cash impairment losses in the three months ended December 31, 2020, as well as a $17.1 million gain on dispositions and $13.7 million of non-cash impairment losses in the three months ended December 31, 2019. For the full year, operating income (loss), net income (loss) and net income (loss) per diluted share reflect a $4.4 million gain on dispositions, $3.0 million in other operating income, $9.0 million of non-cash impairment losses and a $2.8 million loss on modification of long-term debt in the twelve months ended December 31, 2020, as well as a $20.7 million gain on dispositions and $13.7 million of non-cash impairment losses for the twelve months ended December 31, 2019.

 Commenting on the financial results, Caroline Beasley, Chief Executive Officer, said, “Beasley’s 2020 fourth quarter financial results reflect the ongoing recovery of our business and solid execution by our teams in generating sequential quarter-over-quarter revenue growth that exceeded the high-end of the preliminary range we announced in January. 

Caroline Beasley

"During the quarter, we continued to navigate the ongoing pandemic-related challenges exceptionally well. The meaningful actions we have taken over the past nine-months, including reducing station operating expenses and negotiating discounts with service providers and partners, resulted in 28.8% year-over-year growth in SOI and improved SOI margin as well as a 62.4% increase in station operating income less corporate expenses.  In addition, despite the pandemic and restrictions in certain markets, we generated fourth quarter free cash flow of $16.8 million, inclusive of the $4.6 million net gain from dispositions, which compares very favorably to the $20.7 million of free cash flow in the year ago period which benefited from $21.8 million in dispositions.

“Record fourth quarter net political revenue of $10.2 million, combined with the resumption of advertising in key categories, drove year-over-year revenue increases in six of our station clusters. Excluding political revenue, Beasley continued to generate sequential month-over-month revenue growth, with October up 8.3% over September and November up 2.0% over October, while December paced slightly behind November due to a tightening of COVID-19 restrictions in certain markets. Notably, our continued emphasis on strong local content drove best-in-industry ratings performance for our station clusters in the fourth quarter, according to Nielsen, and our cumulative on-air audience share has grown consistently since March.

“The improvement in fourth quarter advertising trends and our ability to capture strong shares of political spending in our markets was complemented by positive results from Beasley’s digital and esports investments, which have been less impacted by the pandemic. Fourth quarter digital revenue rose 7.6% year-over-year to $7.3 million and accounted for approximately 10.6% of total fourth quarter revenue, compared to 9.2% of total revenue in the prior year period.

“Year-over-year advertising revenue declines, while moderating, have continued in the 2021 first quarter, as the first two months of the comparable 2020 period were not impacted by the pandemic. However, we remain optimistic that the commercial advertising market will return to more normalized revenue levels as we move further into the year, following broad vaccine distribution.