Beasley Broadcast (BBGI) 8 May 242024 Q1 Earnings call transcript

Good morning, and welcome to Beasley Broadcast Group First Quarter 2024 Earnings Call.

Before proceeding, I would like to emphasize that today's conference call and webcast will contain forward-looking statements about our future performance and results of operations that involve risks and uncertainties described in the Risk Factors section of our most recent annual report on Form 10-K as supplemented by our quarterly reports on Form 10-Q.

Today's webcast will also contain a discussion of certain non-GAAP financial measures within the meaning of Item 10 on Regulation S-K. A reconciliation of these non-GAAP measures with their most directly comparable financial measures calculated and presented in accordance with GAAP can be found in this morning's news announcement and on the company's website.

I would also like to remind listeners that following its completion, a replay of today's call can be accessed for 5 days on the company's website, www.bbgi.com.

a Press today's site. Room find the release also or Investors sections can copy press of on You of the

this Broadcast like to would Please time, the At over conference go to ahead. your CEO, Group turn Beasley Caroline Beasley. host, I

our and is review with morning. quarter you, me us Melissa, you joining Tedesco, morning, this good Thank results. Thank Marie everyone. for to first CFO, our

X.X% quarter previewed revenue below Industry-wide $X.X the decrease the X.X%, revenue XX ad a in year-ago March or softness reported. slightly we led from home the which on basis, the was million. the QX period, first pacing importantly, a at declined to time is WJBR, more quarter meaning first and show of Perhaps Outlaws same-station excluding revenue

political to we that as political to exceeds states. our spend quarter, generated and located in $XX,XXX QX political, net for look our several continue budget swing of of $XXX,XXX and 'XX. revenue, in the we forward first This markets to are compares 'XX During robust quarter

expenses by related in million, PPP reduction divestiture last our revenue. offset WJBR and a digital third-party expenses reflecting team. increase which from X.X% $X.X Same-station Operating of esports headcount declined year, the to $XX,XXX, or the COGS increased declined includes digital

adjusted As $X.X a quarter result, our compared EBITDA to $XXX,XXX was first million last year.

$X.X million accounts the our from agency off new new or direct first and down first Breaking developing quarter. was business, XX% shift Over-the-air XX% This $X.X business million. to remain or XX.X% direct. highly was business as million of for continue increased and total driven revenue ] as [ paid direct million, direct in down focused local by our local spot flat. agency local quarter local down we or $X.X our local for to XX% a was Local same-station efforts was $X.X to performance. on business as We decline our

$XXX,XXX quarter, it just or X.X% of declined national year-over-year, during signs increased X.X% stabilizing, excluding showing Now the political. and

in quarter we digital Digital And outbuilding total and build as successful in XX.X% first Our at the total. is ex this revenue. this continues revenue was been growth a digital basis. XX.X% political is delivered XX% on as which national accounted of of for revenue, again, offsetting digital the revenue, national with quarter, revenue we've declines year-over-year growing same-station

continued for expect between of XX% digital XX% our revenue digital growth services. of by total driven account the to in success and We content creation XXXX and and

marking with following category. the for in touching both total quickly by sports QX, North sports on sports year-over-year and the our XX% $X.X driven approval in recent Charlotte revenue the cluster Now now betting increase was And million this of revenue Carolina. a betting Boston accounting quarter. betting We in recorded our of X%

going going over Marie? to I'm quarter. now she's So and to provide turn you Marie, dive to a deeper it the into

Thanks, everyone. and morning, good Caroline,

related to same-station Caroline year-over-year. mentioned, revenues decreased direct revenue driver decline or revenue the The and in up revenue, Wilmington in [indiscernible] digital As year-over-year and less somewhat box Augusta, decline in-house main of the million. was positive recorded agency $XX.X XX% Fayetteville X.X% local Charlotte, XX% [indiscernible] to divested in first station, growth and one growth our the net digital quarter by offset quarter show on home continued agency which was business, a the basis.

February X.X%, declined increased dropped and January quarter, the at X.X%. X.X% March closer Looking

X.X% March esports excluding revenue Home Wilmington the basis, the station, down X.X%, for March the year-over-year. up declined and of and divested same-station declined a the January quarter same-station And X.X%, February on X.X%. was However, Show, nonreturn

and declined which reduction related million digital by million headcount expenses $X the was Same-station to XXXX compared shift million. due cost quarter $X.X for somewhat station Same-station SOI divested expenses driven esports million sales $X.X the management, in year-over-year for expense increased X.X% revenue. expenses from And to $X.X and the to $X.X Wilmington XXXX quarter by team. decreased declined Operating first offset our by to or SOI third-party the of dropped overall previous to primarily $XX,XXX million. quarter

our Consumer at total category looking revenue Now for with categories increased of including legal increase year-over-year, services our and in remained X.X% revenue quarter. XX.X% home at the revenue largest an of spend improvement.

entertainment, quarter, the was X.X% of category revenue. largest in second up total for XX% Our which accounting was

of revenue. increase from spend Charlotte, came from sports entertainment we surge largest ad benefiting where are The a betting

had Fayetteville Augusta. also Detroit, Boston, in year-over-year increases and Tampa, Myers, We Fort

betting to such We in to markets dollars the Charlotte. continue see new declines due sports as moving some to market Philadelphia

place, mostly year-over-year, [ landed the representing third in of quarter, from Detroit. Tampa and X.X% XX.X% Retail falling ]

accounted The quarter saw category other category the first our or of for and $XXX,XXX total XX.X% year-over-year, revenue. X.X% revenues down

the our X Tampa, exceeded year-over-year. our Las revenue decreased positive share in However, of of on and year Vega. markets auto growth, prior market in Las including spend as note, Charlotte a grew we Charlotte, and Philadelphia, Detroit Vegas And dollars

at up place fifth quarter came revenue. And Consumer sixth place X.X% XX.X%. in of in total landed of X% telecom first products revenue, total with

decreased ago taxes $XX,XXX $XXX,XXX The in expenses income decrease the in corporate year-over-year Noncash for $X.X in quarter. the we $XX,XXX same is G&A the to and quarter, wages to and legal fees. the stock-based a $XX,XXX quarter compensation compared related in quarter paid million. X.X% to Corporate reduction mostly or for G&A increased a to year

reflecting income to decreased million $X.X year-over-year quarter decline operating reduction expense in compared million Interest first in $X.X quarter, XXXX year-ago revenue. to $XXX,XXX quarter to XXXX. a debt million, negative $X in First the million the year-over-year reflecting decreased throughout $X.X

$X.X we the on of X, first quarter EBITDA $XXX prior the Adjusted lowest year. profitability for with quarter of a throughout XXXX. February that was to semi-annual made pattern consistently compared year million. being in adjusted $XXX,XXX our EBITDA quarter We payment interest ended shows debt will note and the first million, the I total cyclical

quarter from on year-end cash We at with the million, of up hand million ended $XX.X $XX.X XXXX.

we compared million. $XXX,XXX quarter expect range of prior annual year million. the to $X million our $X.X in of CapEx quarter spend XXXX, for were looking expenses to $X Our into first the capital And

with back it And Caroline. will that, I to turn

continue focus our a of including: marketing implementation particularly to percentage strategies number sales Beasley. contribute force; finally, digital relationships one, advertisers; strong growth, revenue significant offer our will sales higher that solutions successful Thank and has digital number number growth, to and impressive you, variety a of local of to for Marie. Digital leverage CPM the of marketplaces. of two, breadth a the private this to expansion continue been to A growth omnichannel after transitioning three, factors

top-rated on markets. appeal The content majority the brand the with have recognition over-the-air of Twitter in talent our local results dominant We yielding and Instagram, strategy been been can strong TikTok. of our like multi-platform that audience growing see share platforms has local and impressions Beasley's with and following digital strong pivotal clusters

mentioned Across audience all a we we decrease, we despite the Google as the And call, fruit. an year-over-year half combined the last adapt brands, initiatives newer some in there of bear our social our to and algorithm second audiences have digital normalization as expectation is year million. quarter's X media about in of of of for changes

platform for about redesign, security traffic new allow all and increase of which to excited experience enhance the an traffic. the redesign websites, SEO back-end particularly site contributing growth. Part and upgrades, will of user our to to We're initiative transition will a further

[indiscernible], opportunity are, Hospital. Radio first communities. host we'd and is Southwest underscore of who commitment Children's Cares local like for our Children's with the the our for we the to joined April, Miracle past Galison Kids Florida caring heart at to over Network take $XX,XXX our in communities cluster This we to raised Now continued our for forces which to

second of approximately we've at quarter up off the remain process- $X.X today, we and such, the current business based end on expenses recent the resulting pacing digits, initiatives reduction a low the workforce. down streamline May pacing through down. elimination and of technology-based June are X% million this April designed single including economic environment. ending in mindful operations, in kicked looking as Now in year, to in our of revenue We with And and of

leverage our best This strategic us valued advertisers as improve serve realignment also shareholders. our and needs to will continue the we audiences, reducing to operating of while our efficiency enable

to the third we through late next asset quarter, comps 'XX year-over-year our we expect Beyond sales impact quarter. in made

prospects However, our the given expectations spend the our growth year back optimistic in in we in half and anticipated 'XX, strong political of about for digital. remain continued growth

the environment signs seeing advertising to cost is our reduce to But that stabilize. some structure. we are and remain national economic positive also market actions current We're beginning of the further taking mindful

And the BMI in structure, our line shares flow effort received first cash quarter. reduce cash more line. intend this to $X the debt, dollars in for to to we capital bring to rightsize reduce free continuing with use we our and our leverage million Finally,

focus are all team members our done in like thank for And forward. closing, that you I they the I'd thank to they've today. attending and everything to So across company doing for

few we a think I have questions. Marie, And

Thanks, a first not Caroline. comes and questions prepared one. here were the Yes, remarks, received particularly addressed we in that few our

give Could update maturity in you XXXX? on the February of an bond

Yes.

a bonds. this this that to for addressing are have on as priority company. goal highly our can we is the So I of say maturity as focused is top And what the soon our possible resolved is as

this The next of question anything is, point? there esports at is left

So at point. have in esports longer we no any teams this

see last the have should been through? implemented? And $X.X this And of million question. we Great. How much when the flow

the we just the research keep $X.X million will the to that's year, relates goods the on an and completed, to have But other in wages through higher marketing operating questions. and million and and is of of cost that month the and out these $X.X And So of reductions million, including remainder $X.X basis. annual in implemented. reduction that related been headcount end expenses. the is this all related to The current be benefits, sold, the mind

Great. free, or with to Marie any call. to you. thank for again questions. myself And Well, right. you reach feel attending as Thank today's out follow-up All always,

This concludes today's you. call. conference Thank

your disconnect you for this may participation. at lines Thank time. You your