Beasley Broadcast (BBGI) 5 Nov 242024 Q3 Earnings call transcript

Good morning, and welcome to Beasley Broadcast Group Third 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 report on Form 10-Q.

Today's webcast will also contain a discussion of certain non-GAAP financial measures within the meaning of Item 10 of 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 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

review and to third you, joining Ryan, thank for morning, good Thank quarter and results. everyone, you us our

after serving who and the next phase want the to I our we Before of retired week the years. recent last other last dive including wish the in into the On the developments, Beasley XX from for journey. CFO behalf her her Beasley Marie team, best we as Board third Tedesco, years, entire quarter X very thank and of

corporate our call finance, the from her Head on CFO, global team, the to I'm pleased Finance. newly as planning have she and she to appointed markets, on Commercial with financial joined us team of functions. this announce running. the morning. Wayfair, delighted tax Lauren hit where Strategic Corporate has Global capital across and served Leading XX Coleman, We're is analysis, development of that ground the and me commercial Burrows and Lauren

our as an recent calls both related been and last months listing. that on discussed several priorities NASDAQ few and we've successfully The have of to inflection respect addressing reduction, productive we've for to active with Beasley reached point the maturities strategic debt

by XXXX, of existing senior August noteholders a in offer, reflecting of of secured offer, reduction XXXX. note in debt future start, supported XX.X% meaningful the notes of To an company's in quarter the tender to in we X.XXX% business. $XX our subsequent to resulting extension million, the of new our completed our end, confidence offering due our and successfully This transaction exchange maturities immediate was

all capital and our of this and create a for transaction structure for we've improving strategic value goals As is priority addresses squarely previously, our our noticed stakeholders. the business

stock ratio Also A company X NASDAQ a investable to XX. at making more for split a our BBGI shares our B effected the us September, reverse certain of of institutions. maintain Class while listing enables in common and Class for This

on sequential QX. of for Outlaws a the X.X%, declined was revenue X.X%, total improvement and adjusting Now XXXX, X Guarantee QX. the basis net from up and diving XX, Outlaws net Digital closure with quarterly revenue down WJBR, September In divestiture, Digital. was X.X% WJBR revenue Same-station representing months Total last into and Guarantee year a the from comping revenue was ended same-station down X.X%.

the in franchises we environment our also Given positive well-documented the developing economy large, the of our business. and and local success ongoing content results challenges third the our diversification of digital ad quarter on local reflect revenue the same-station at direct of focus strength believe and

quarter, same XXXX. relative across to digital, traditional in the million bringing million the generated XX% $X year-to-date revenue to up and During we both political million. That's period $X.X in $X.X net in net political

QX there we of in generated, as another of are our we QX for $X.X day basis. of the and date exceeding we year-to-date year, the general political revenue report booked On with to will on to the level budget pleased political $XX course, election, million the net significant million a in be and

this effective but we Digital Guarantee quarter our white-label experienced disruption third quarter, second closed strong digital XX. revenue we reflects the some a as of segment Following grew X.X%, July agency,

revenue. total a XX% 'XX of and XX.X% 'XX. However, QX digital Nevertheless, XX.X% revenue same QX and for QX up mix revenue XX.X% revenue toward year-to-date on the from XX.X% accounting a quarter station That's grew shift of basis, with on in digital total basis. our digital continues in for

digital XX, September total revenue. For the ended months X for accounted of XX.X%

same-station with national it QX political, in constrained political of down results businesses. was benefit in XX.X% political. our revenue, reliant including XX.X%. XX% accounted of political national in 'XX. XX.X% and national Overall, divestitures up and total, dropped quarter this And ad across is ex from million QX, other for remains for QX and national XX.X% discontinued the ops, increased XX.X% and In to the or ex $X.X industry ex saw 'XX in National compared QX and XX.X% total year-over-year

million about X.X% QX our by X.X% was driven was down $X Same-station X.X% local down breaking or Now further. and business. agency or in local a performance decline $X.X over-the-air overall. declined local million revenue That This was from for direct sales. partially in as sales to total XX% agency by continue offset a currently our Local shift direct we X.X% business local account of direct. increase to

remain margin and business. we local upside, highly cash direct the on new our flow focused developing Given

In it 'XX X.X% X.X%. basis, XX.X% our XX.X% new year-over-year, QX and on year-over-year same-station grew a business a a increased increased on and And it basis, basis. same-station year-to-date on

control digital. Now and over, and that local this reinforces direct more our is have that business towards focus we

to she's it going to I'm going Lauren, that, QX. with to dive and hand deeper a you give So over into

set here Thanks, great noted, to the business and key foundation Further, several I'm markets demonstrable because everyone. shareholder teams. strategic be Caroline, for Beasley creation good in has growth progress with Caroline and on local value. some as the priorities of and excited a morning, fantastic is franchises has making

of year-over-year, and the a September the quarter. quarter growth net Station increase for and the of revenue resulting in the political dropped third elimination August same-station July revenue continued X.X%, same-station The million. revenue a esports, local Guarantee offset Digital excluding basis, Guarantee X.X% station was up X.X% by digital. and divested On of in $XX.X X.X% Wilmington partially declined decline was and divestiture Outlaws Wilmington spot and Digital total mentioned, the Caroline was As plus

further our efficiency in QX, we drove In operations.

or $X.X $X.X the our For income, to quarter, expenses operating year-over-year and or SOI, $XXX,XXX costs, station declined in of X.X% declined operating million $XXX,XXX, million. inclusive severance

million severance were would have $XXX,XXX Excluding to $X.X decreased year-over-year. expenses costs, million nonrecurring down SOI and by $X

which $X.X million SOI severance Digital, excluding also onetime same-station expenses by in Guarantee WJBR, costs. basis, resulted same-station $X.X operating a esports costs, to that $X.X severance a is number in and excluding reduction million. Again, On million, onetime increased

impacted expenses, incremental expenses severance timing quarter this in by combination million was noncash home in also $X.X the of trade year of this the last versus and million to year. the addition debt from a show $X bad expense, In

categories revenue quarter. primarily year-over-year partially live early national strength the than entertainment, for in and Carolina the our the in revenue in bright delivering Retail incremental $X.X remained Tampa with $X.X of as recorded XX.X% into XXXX, retail offset the sports were total local year-over-year. retail challenging in accounted Consumer in rose tied delivered entertainment combined category. a and sports second the a Declines betting accounts, decline. that for driven declines quarter, year-over-year betting, and year-over-year the X.X% in to quarter. representing as offsetting the by other place consumer X.X% services quarter In Charlotte the of we more In in and Digging revenue in $XXX,XXX, million Charlotte entertainment the each gain revenue responding services XX.X% category fell markets. economic million spots, for retail. total category, went our with environment, at North Detroit were largest X% category revenue which benefited in of X.X% by

year-over-year, revenue rising levels been as squeezed total Reflecting and the driven came with high up results auto XX% X.X% have impressive products of by the fifth by in Consumer Charlotte interest place continued at QX Boston and our X.X% in for quarter, strong an total in Augusta challenges as and revenue. well. year-over-year, Philadelphia profits represented inventory domestic down The category rates. auto of XX% was and

to Corporate $X.X to Turning X.X% $XXX,XXX expenses. same G&A or year million. the compared a expenses to ago decreased quarter

nonrecurring in to corporate corporate to Excluding G&A of and stock-based $XXX,XXX a expenses decrease reduction in is severance QX compensation expenses our or quarter the year-to-date. an decreased The increased $X.X allocation to related increased -- XX.X% to I'm and compensation million. G&A increased digital to mostly $XXX,XXX $XXX,XXX markets. corporate in Noncash $XXX,XXX $XXX,XXX costs, sorry,

million. Third quarter to a year-to-date. in X for current results and year $XX.X positive income $XX.X year $XX.X million and The XX income current prior to positive XXXX $X.X and $XX.X prior million quarter to from and months an XXX.X% included QX ending increased $XXX,XXX from million, of negative operating $X.X X increased $XX a the negative the $XX year-over-year a compared million respectively, million impairment loss a million months or operating year September million,

was year-to-date Interest quarter $XXX down forma throughout reductions and the transaction, million expense million decreased period of original new the start $X at year And $X.X X, XXXX. a the from XXXX, our the exchange, pro debt compared $XXX debt $XXX,XXX debt completed third of and beginning as tender we million, Caroline reflecting issued ago, the of offer and million to on decreased debt October $XXX our ended year-over-year to end of quarter the noted with total of same benefit for XXXX. the notes call, the million. at We

add-back QX onetime expense WBOS. additional Guarantee $XXX,XXX ended $XX.X year-to-date, shutdown million severance for expenses quarter X.X% of $X.X million of of quarter these cash $XX.X Adjusted noncash the million We million or million EBITDA down onetime offsetting and with more $X.X hand XXXX. was compensation nonrecurring year-over-year, We or quarter, $XXX,XXX the EBITDA end When and grew $X.X the LMA down $XX.X the of X.X% Outlaws reduction adjusting items, stock-based for the this of of million than and of $XXX,XXX for in further $X.X the $XXX,XXX year-to-date. the had at by with revenue. and quarter, and of on Digital the million, from from adjusted

in were compared $X.X to QX the looking the continue range capital $X $X.X of for million. to was quarter Our expect Year-to-date at $XXX,XXX. the $X spend of year annual full year prior million $XXX,XXX spend our the CapEx XXXX, CapEx to we to million million. expenses And prior compared year of the of

me to And turn it with back that, Caroline. let

you, Thank Lauren.

and further of growth a a us, QX priority So for digital strategy. represented our revenue remains strategic optimization

expenses. doing our on noted agency, effective portion Guarantee call, of and XX, white-label closed we in July operating Digital, eliminated so, QX large we the a our As

our SOI Head team digital digital responsible digital with company. marketing rolled products. short time of So He's for Snyder And building In been segment opportunities our the He's we of the of in overseeing development offerings. optimize Content hired strategy and O&O Digital on our leading revenue $XXX,XXX. all reported August, Dave for sales marketing and of the affiliate Marketing. website, third behalf Dave as go-to-market he successfully content-rich our out company, integral to quarter, also newsletters,

the ratings our remains in positions Vegas, times In markets as Beasley We've mentioned such call, a markets the Tampa our Boston, Charlotte, the franchises Philly, local we sustained of powerhouse and operate. on dominant strength the we rating our previous Ratings the of Nielsen the we Charlotte in few release, the key saw for rating the most XX% period. period market, growth of saw and medium-sized last increasing in was XX%, Augusta where spring adult share the demographic. respectively. released earnings X% growth XX-XX Since and our from most

audience of more to our platform, streaming the XXXX. audience in As digital period migrate continues grew same from X% our to same-station

Now of and during Hurricane the final impacted markets, days of several especially our Tampa. Augusta, Fort Myers Helene QX,

local our concerned guidance. information During to as served residents, lifeline station looking the for storm, a and

Our benefit south all Beasley Cross the just all the us their the on team of the over programming radio needed ongoing listener before are made is stations. concerts after the in team worked supply recovery the coverage storm, providing and hosting leading served best days were technical our support and just night the by and team drive, way. engagement air. when when Hurricane and Milton on most did wall-to-wall later, possible efforts communities it producing In live moments few following These provided keep day storm, Tampa. days and our And amazing and stations again the we landfall then the to a Red

fourth down Now pacing basis and pacing pacing mid-single digits up mid-single and XX%. XX% on with in quarter moving They're on October of to December digits XXXX same-station a down revenue roughly up today. the as November

from the As we are look December, our hesitant to election at to that and prior November the advertisers are through we pacing results. book hearing they

our capital on and cash strategic and execute in drive to parallel, our to structure. continue improve flow, profitability improved plan We free

strategic and to $X capital million offer amount annualized material structure. an July, operations, reductions in And new tender These excess and recent addition, of which to a headcount to executed continued are new streamlining exchange, early represented we systems on basis. have through the reductions and retirement, our Our our expense we've evaluate achieved improvement since implementation in of projected notes been reductions, G&A. voluntary in a

full-time In these employee XX. aggregate, our of reduced by XX% actions the count the from have through year start September

offer. for previously Now this addition and financial nearly is new in settlement tender the notes the $XX in our to million exchange, disclosed

are such, As looking approximately we total of $XX at million. annualized savings

structure behind operational the revenues. capital nurturing a meaningful we're and with our political traditional expanding our on So improvement and strong growing our and business digital focused us, season and in efficiency

our company So our execute across team I'd done in to closing, doing they've the to members are thank like for strategic and on everything plan.

Lauren, that, know I in. that that questions we sent with were have So a few

yes, we will So take them.

So wasn't prepared Philadelphia was, resumption the that covered remarks first received advertising you are any in in national Boston? in we question our seeing and

answer So not I as that yet. would

are our after the indicated, inventory. that we book of is As advertisers to primarily the anything until of election. because hesitant And shortage

once election hopeful be the are the the is maybe We noise has then that advertisers today passed, once will coming over and back.

buybacks? So about the I'll post do this you Next liquidity more bond the take exchange, how think for is question one. and potential

opportunistically as we position to First But a maintaining that, back we bonds. will are anything minimum absolutely of business. cash on course, opportunities above and buy seek foremost, focused a

the comps going So again? foresee moving you on do year-over-year When to next positive question.

Right.

So as up our fourth up is indicated quarter a earlier, third in revenue And the pacing digits. quarter X.X%. in basis, same-station on the we mid-single was

we in fourth as expect to up be So well. quarter do revenue

great. That's

in what So we we remarks. already addressed those had the were the incremental all prepared questions beyond

feel in and myself. Okay. thank follow-up or you. any you, you please should everyone, Lauren today. you, for have And to listening Thank contact Thank questions, Lauren, free

concluded. The has Thank Group Thank now conference for participation. Broadcast you. your Beasley of you

disconnect lines. now may You your