3Q Was 'Challenging' For Beasley Media Group With Mounting Loss

Beasley Broadcast Group Inc. reported a wider loss and lower revenue Friday as the radio company continued to contend with soft traditional advertising while pressing ahead with cost cuts, digital margin gains and balance-sheet moves.⁠

The Naples, Florida-based company posted a net loss of $12.1 million, or $6.51 per diluted share, for the three months ended Sept. 30, compared with a loss of $3.6 million, or $1.97 per share, a year earlier. Revenue fell 16.1% to $42.8 million (down 10.2% on a same-station basis). Adjusted EBITDA, a non-GAAP measure of operating performance, was about $1.3 million versus $3.9 million in the prior-year period.

Local revenue, including locally sold digital packages, accounted for 76% of net revenue and declined 6% year over year. Digital revenue totaled $9.8 million, down 24% year over year and 12% on a same-station basis; it represented 23% of net revenue (24% excluding political advertising). The digital segment’s operating margin expanded to 32% from 21% a year earlier. Revenue from new business made up 14% of the total.⁠

Operating expenses, excluding corporate costs, depreciation and amortization, fell about $7 million, or 15.1%. Station operating income was roughly $3.6 million (an 8.5% margin). Corporate expenses rose to about $3.9 million from $2.2 million, driven by restructuring, financing and transaction costs; excluding nonrecurring items they were about $2.8 million.⁠

Caroline Beasley

After quarter-end the company completed sales of two radio stations and two parcels of real estate that generated more than $10 million in net proceeds. Combined with a September equity raise of about $4.6 million, the moves reduced first-lien notes outstanding to roughly $3.6 million. The company has posted a presentation covering third-quarter highlights to its website for review on Friday’s conference call.⁠

“While the advertising environment remains challenging, our third-quarter results demonstrate the tangible progress we are making in building a more efficient and financially resilient company,” Chief Executive Officer Caroline Beasley said. She pointed to structural cost reductions, stronger digital margins and growth in local direct advertising as positives, while emphasizing priorities of stabilizing core revenue, expanding digital profitability, improving free cash flow and reducing leverage.⁠

Beasley owns and operates radio stations in markets including Boston, Philadelphia, Detroit, Charlotte, Tampa and Las Vegas. Shares traded near $5.50–$5.60 around the release.