Beasley Reports Revenue Increases, Loss Narrows

 

Beasley Broadcast Group, Inc. today announced operating results for the three- and twelve-month periods ended December 31, 2022.

1Operating loss, net loss and net loss per diluted share for the three months ended December 31, 2022 include $44.2 million of non-cash impairment losses related to FCC licenses, goodwill and franchise rights. Operating loss, net loss and net loss per diluted share for the twelve months ended December 31, 2022 include $54.7 million of non-cash impairment losses related to FCC licenses, goodwill and franchise rights. Net loss and net loss per diluted share in the three and twelve months ended December 31, 2021 reflect a $10.0 million gain on forgiveness of long-term debt. Net loss and net loss per diluted share in the twelve months ended December 31, 2021 reflect a $5.0 million loss on extinguishment of long-term debt.

Net revenue during the three months ended December 31, 2022 increased 1.8% to $72.0 million, primarily reflecting a year-over-year increase in digital revenue, political revenue and other revenue, partially offset by a slight decrease in audio revenue related to softness in the national agency business.

Beasley reported an operating loss of $33.5 million in the fourth quarter of 2022, compared to operating income of $6.5 million in the fourth quarter of 2021, primarily due to $44.2 million of non-cash impairment losses and higher operating expenses related to digital, partially offset by lower corporate and depreciation and amortization expense.

Beasley reported a net loss of $25.8 million, or $0.87 per diluted share, in the three months ended December 31, 2022, compared to net income of $10.6 million, or $0.36 per diluted share, in the three months ended December 31, 2021. The fourth quarter net loss was primarily due to the aforementioned non-cash impairment losses. The comparable 2021 period also benefitted from a $10.0 million gain on forgiveness of long-term debt for the Company’s loan granted under Paycheck Protection Program.

Caroline Beasley

SOI increased 0.2% to $13.9 million in the fourth quarter of 2022 primarily due to higher revenue.

Commenting on the financial results, Caroline Beasley, Chief Executive Officer, said, “Beasley’s 2022 fourth quarter and full year financial results reflect the ongoing success of our digital transformation and revenue diversification strategies, which drove year-over-year increases in revenue and SOI for both the three- and twelve-month periods. Throughout the year, Beasley largely offset ongoing challenges related to the economy and softness in the national spot market, as we generated healthy growth across all of our digital, local audio, political and other revenue sources, as reflected by the 6.2% increase in full year net revenues to $256 million. This top-line growth was the primary factor contributing to a 2.8% year-over-year increase in full year SOI to $43.1 million.

“Looking ahead to 2023, our strategic priorities remain focused on growing our overall audience and delivering exceptional content and services to our listeners, advertisers, online users and esports fans, while diversifying our revenue, growing our cash flow and maintaining a solid and flexible balance sheet with liquidity at current or higher levels, which we believe will best position Beasley for near- and long-term success and the enhancement of stockholder value.”