Digital Expenses Hampers Beasley Income

Beasley Broadcast Group, Inc. today announced operating results for the for the three- and twelve-month periods ended December 31, 2021.

Net revenue during the three months ended December 31, 2021 increased 3.3% to $70.7 million, primarily reflecting a year-over-year increase in audio and digital advertising revenue and other 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 political revenue.

Beasley reported operating income of $6.5 million in the fourth quarter of 2021 compared to operating income of $19.6 million in the fourth quarter of 2020. The decrease largely reflects higher operating expenses related to the Company’s digital agency build out, and the return of certain expenses that had been reduced in 2020 due to temporary measures taken in response to the COVID-19 pandemic. The comparable 2020 period also benefitted from a $4.4 million gain on dispositions and $3.6 million in other operating income partially offset by $2.2 million of non-cash impairment losses, which were non-recurring in 2021.

Interest expense increased $2.5 million to $6.8 million in the fourth quarter of 2021 resulting from the issuance of senior secured notes in February 2021. Beasley recorded a $10.0 million gain on forgiveness of long-term debt as the Company’s loan granted under Paycheck Protection Program received approval for forgiveness in November 2021. As a result of these factors, Beasley reported net income of $10.6 million, or $0.36 per diluted share, in the three months ended December 31, 2021, compared to net income of $11.0 million, or $0.38 per diluted share, in the three months ended December 31, 2020.

SOI decreased by $6.2 million to $13.9 million in the fourth quarter of 2021 from $20.1 million in the fourth quarter of 2020. The decrease is primarily attributable to higher operating expenses, including the continued build out of the Company’s digital agency.

Caroline Beasley

Commenting on the financial results, Caroline Beasley, Chief Executive Officer, said, “Beasley delivered a strong finish to a solid year of operating and financial performance, as the strength of our content and continuing improvement in advertising trends, combined with the ongoing success of our digital transformation and revenue diversification strategies, continue to fuel our recovery. 

"Throughout the year, we made significant progress on our near-term goal of returning all of our revenue sources to pre-pandemic levels, as reflected by the 17% increase in full year net revenues to $241 million. Top-line growth was the primary factor contributing to a 75% year-over-year increase in SOI to $42.0 million. Overall, we believe these results demonstrate the strength and relevance of our industry-leading audio content and our teams’ extraordinary efforts to serve our listeners, customers and communities through challenging circumstances.

“Growing consumer and advertiser demand for Beasley’s digital audio content drove a 47.3% year-over-year increase in digital revenue, with digital accounting for 15% of total fourth quarter revenue. Notably, our digital network delivered record digital audience impressions for the third consecutive quarter, with total digital impressions growing 20% over third quarter 2021 levels and 39% over the prior year period."