Beasley Reports Strong 2Q Momentum

Beasley Broadcast Group, Inc. Thursday announced operating results for the three- and six-month periods ended June 30, 2021

Net revenue during the three months ended June 30, 2021 increased 96.1% to $59.6 million and primarily reflects a year-over-year increase in audio advertising revenue and digital revenue due to the continued recovery of the commercial advertising market from the effects of the COVID-19 pandemic, partially offset by a decrease in other revenue.

Beasley reported operating income of $5.8 million in the second quarter of 2021 compared to an operating loss of $17.6 million in the second quarter of 2020, largely reflecting the year-over-year increase in net revenue and Station Operating Income (SOI, a non-GAAP financial measure), in addition to lower depreciation and amortization expense and $1.5 million of other operating income, net from life insurance proceeds related to the death of George Beasley, the Company’s former Chairman, partially offset by higher operating and corporate expenses.

Beasley reported net income attributable to BBGI stockholders of $0.2 million, or $0.01 per diluted share, in the three months ended June 30, 2021, compared to a net loss attributable to BBGI stockholders of $17.7 million, or $0.63 per diluted share, in the three months ended June 30, 2020. The year-over-year increase was primarily due to higher revenue and SOI, as well as the other operating income described above, partially offset by higher interest expense resulting from the issuance of senior secured notes in February 2021.

SOI increased by $21.1 million to $11.1 million in the second quarter of 2021 compared to negative SOI of $11.0 million in the second quarter of 2020. The increase is primarily attributable to increased net revenue and lower operating expenses as a percentage of net revenue compared to the prior year period and reflects the benefit of permanent expense reductions implemented in response to the COVID-19 pandemic.

Commenting on the financial results, Caroline Beasley, Chief Executive Officer, said, “Beasley’s strong 2021 second quarter financial results reflect growing momentum across our media platform, as the continuing broad-based economic recovery accelerated demand from consumers and advertisers for our premium content and marketing and advertising services. 

"With the significant rebound in the commercial advertising market, second quarter net revenue of $59.6 million increased 24% over first quarter 2021 levels and 96% over the comparable prior year period. Top line growth combined with the meaningful actions we have taken over the past year to permanently reduce costs and improve operating efficiencies, resulted in a significant rebound in net income to $0.2 million and SOI to $11.1 million, as well as positive free cash flow of approximately $1.0 million.

Caroline Beasley

“Throughout the second quarter, the resumption of advertising in key categories combined with the success of our content monetization strategies resulted in year-over-year revenue growth across all fifteen of our markets, with healthy double-digit revenue increases in Boston, Detroit, Philadelphia and Wilmington. Notably, our continued emphasis on strong local content and consumer engagement drove best-in-industry ratings performance for our station clusters, according to Nielsen. Our cumulative on-air audience share approached pre-pandemic levels in the second quarter, having grown consistently since the height of the COVID-19 pandemic in 2020. While second quarter non-traditional revenue (NTR) and events revenue was minimal, we made the strategic decision to fully re-open our events business in the third quarter, given the continued strengthening of commerce and consumer activities in our markets, and expect incremental revenue from this source in the second half of 2021. As we work to return all of our revenue sources to pre-pandemic levels of operation, we are closely tracking potential impacts from the Delta variant and the uncertainty it may bring to businesses we serve and our future operating results.

“Our ongoing focus on digital innovation and the strategic investments we are making in our digital and esports infrastructure and content production capabilities are delivering positive results and continue to highlight the value of our long-term revenue and cash flow diversification strategies.