☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 65-0960915 | |
(State of Incorporation) | (I.R.S. Employer | |
Identification Number) |
Title of Each Class | Trading Symbol | Name of Each Exchange on which Registered | ||
Class A Common Stock, par value $0.001 per share | BBGI | Nasdaq Global Market |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☐ | Smaller reporting company | ☒ | |||
Emerging growth company | ☐ |
Page No. | ||||||
PART I | ||||||
FINANCIAL INFORMATION | ||||||
Item 1. | 3 | |||||
7 | ||||||
Item 2. | 13 | |||||
Item 3. | 19 | |||||
Item 4. | 19 | |||||
Item 1. | 20 | |||||
Item 1A. | 20 | |||||
Item 2. | 20 | |||||
Item 3. | 20 | |||||
Item 4. | 20 | |||||
Item 5. | 20 | |||||
Item 6. | 21 | |||||
22 |
December 31, | June 30, | |||||||
2020 | 2021 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 20,759,432 | $ | 57,141,091 | ||||
Accounts receivable, less allowance for doubtful accounts of $5,033,035 in 2020 and $1,556,281 in 2021 | 47,395,423 | 44,339,118 | ||||||
Prepaid expenses | 2,486,860 | 4,806,961 | ||||||
Other current assets | 6,883,554 | 8,066,771 | ||||||
Total current assets | 77,525,269 | 114,353,941 | ||||||
Property and equipment, net | 53,667,550 | 51,911,868 | ||||||
Operating lease right-of-use | 34,419,663 | 38,238,870 | ||||||
Finance lease right-of-use | 333,333 | 326,667 | ||||||
FCC licenses | 508,558,355 | 508,413,913 | ||||||
Goodwill | 28,596,547 | 28,596,547 | ||||||
Other intangibles, net | 25,859,192 | 24,238,554 | ||||||
Other assets | 9,654,447 | 5,783,607 | ||||||
Total assets | $ | 738,614,356 | $ | 771,863,967 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 12,395,407 | $ | 6,557,722 | ||||
Operating lease liabilities | 7,006,194 | 8,447,497 | ||||||
Finance lease liabilities | 70,171 | 37,030 | ||||||
Other current liabilities | 20,988,441 | 34,396,334 | ||||||
Total current liabilities | 40,460,213 | 49,438,583 | ||||||
Due to related parties | 5,621,364 | 420,549 | ||||||
Long-term debt, net of unamortized debt issuance costs | 258,345,380 | 303,029,470 | ||||||
Operating lease liabilities | 29,632,908 | 32,117,096 | ||||||
Finance lease liabilities | 1,945 | 0 | ||||||
Deferred tax liabilities | 120,913,983 | 117,019,777 | ||||||
Other long-term liabilities | 16,536,743 | 16,531,273 | ||||||
Total liabilities | 471,512,536 | 518,556,748 | ||||||
Commitments and contingencies | 0 | 0 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock, $0.001 par value; 10,000,000 shares authorized; NaNissued | 0— | 0— | ||||||
Class A common stock, $0.001 par value; 150,000,000 shares authorized; 15,930,765 issued and 12,677,074 outstanding in 2020; 16,141,985 issued and 12,602,115 outstanding in 2021 | 15,930 | 16,141 | ||||||
Class B common stock, $0.001 par value; 75,000,000 shares authorized; 16,662,743 issued and outstanding in 2020 and 2021 | 16,662 | 16,662 | ||||||
Additional paid-in capital | 154,004,965 | 150,437,624 | ||||||
Treasury stock, Class A common stock; 3,253,691 shares in 2020; 3,539,870 shares in 2021 | (28,187,857 | ) | (28,995,230 | ) | ||||
Retained earnings | 143,304,213 | 133,258,641 | ||||||
Accumulated other comprehensive loss | (1,426,619 | ) | (1,426,619 | ) | ||||
Total stockholders’ equity | 267,727,294 | 253,307,219 | ||||||
Noncontrolling interests | (625,474 | ) | 0 | |||||
Total equity | 267,101,820 | 253,307,219 | ||||||
Total liabilities and equity | $ | 738,614,356 | $ | 771,863,967 | ||||
Three Months Ended June 30, | ||||||||
2020 | 2021 | |||||||
Net revenue | $ | 30,383,132 | $ | 59,574,705 | ||||
Operating expenses: | ||||||||
Operating expenses (including stock-based compensation of $113,397 in 2020 and $176,349 in 1 excluding | 41,378,315 | 48,494,420 | ||||||
Corporate expenses (including stock-based compensation of $85,867 in 2020 and $225,850 in 2021) | 3,724,764 | 3,957,854 | ||||||
Depreciation and amortization | 2,886,071 | 2,850,923 | ||||||
Other operating income , net | 0 | (1,500,000 | ) | |||||
Total operating expenses | 47,989,150 | 53,803,197 | ||||||
Operating income (loss) | (17,606,018 | ) | 5,771,508 | |||||
Non-operating income (expense): | ||||||||
Interest expense | (3,851,660 | ) | (6,865,369 | ) | ||||
Loss on modification of long-term debt | (2,798,789 | ) | 0 | |||||
Other income, net | 71,691 | 8,080 | ||||||
Loss before income taxes | (24,184,776 | ) | (1,085,781 | ) | ||||
Income tax benefit | (6,041,946 | ) | (1,299,394 | ) | ||||
Income (loss) before equity in earnings of unconsolidated affiliates | (18,142,830 | ) | 213,613 | |||||
Equity in earnings of unconsolidated affiliates, net of tax | (24,967 | ) | (25,919 | ) | ||||
Net income (loss) | (18,167,797 | ) | 187,694 | |||||
Earnings attributable to noncontrolling interest | 432,836 | 0 | ||||||
Net income (loss) attributable to BBGI stockholders | $ | (17,734,961 | ) | 187,694 | ||||
Net income (loss) attributable to BBGI stockholders per Class A and Class B common share: | ||||||||
Basic and diluted | $ | (0.63 | ) | $ | 0.01 | |||
Weighted average shares outstanding: | ||||||||
Basic | 27,977,113 | 29,235,009 | ||||||
Diluted | 27,977,113 | 29,324,614 |
December 31, 2020 | September 30, 2021 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 20,759,432 | $ | 48,141,758 | ||||
Accounts receivable, less allowance for doubtful accounts of $5,033,035 in 2020 and $1,748,483 in 2021 | 47,395,423 | 47,197,566 | ||||||
Prepaid expenses | 2,486,860 | 8,741,464 | ||||||
Other current assets | 6,883,554 | 5,156,134 | ||||||
Total current assets | 77,525,269 | 109,236,922 | ||||||
Property and equipment, net | 53,667,550 | 51,037,061 | ||||||
Operating lease right-of-use | 34,419,663 | 36,183,469 | ||||||
Finance lease right-of-use | 333,333 | 323,333 | ||||||
FCC licenses | 508,558,355 | 508,413,913 | ||||||
Goodwill | 28,596,547 | 28,596,547 | ||||||
Other intangibles, net | 25,859,192 | 23,428,235 | ||||||
Other assets | 9,654,447 | 5,729,459 | ||||||
Total assets | $ | 738,614,356 | $ | 762,948,939 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 12,395,407 | $ | 6,827,616 | ||||
Operating lease liabilities | 7,006,194 | 8,082,982 | ||||||
Finance lease liabilities | 70,171 | 19,487 | ||||||
Other current liabilities | 20,988,441 | 28,840,426 | ||||||
Total current liabilities | 40,460,213 | 43,770,511 | ||||||
Due to related parties | 5,621,364 | 396,371 | ||||||
Long-term debt, net of unamortized debt issuance costs | 258,345,380 | 303,409,681 | ||||||
Operating lease liabilities | 29,632,908 | 30,405,364 | ||||||
Finance lease liabilities | 1,945 | 0 | ||||||
Deferred tax liabilities | 120,913,983 | 116,505,040 | ||||||
Other long-term liabilities | 16,536,743 | 16,528,538 | ||||||
Total liabilities | 471,512,536 | 511,015,505 | ||||||
Commitments and contingencies | 0 | |||||||
Stockholders’ equity: | ||||||||
Preferred stock, $0.001 par value; 10,000,000 shares authorized; 0ne issued | 0 | 0 | ||||||
Class A common stock, $0.001 par value; 150,000,000 shares authorized; 15,930,765 issued and 12,677,074 outstanding in 2020; 16,141,985 issued and 12,600,240 outstanding in 2021 | 15,930 | 16,141 | ||||||
Class B common stock, $0.001 par value; 75,000,000 shares authorized; 16,662,743 issued and outstanding in 2020 and 2021 | 16,662 | 16,662 | ||||||
Additional paid-in capital | 154,004,965 | 150,688,962 | ||||||
Treasury stock, Class A common stock; 3,253,691 shares in 2020; 3,541,745 shares in 2021 | (28,187,857 | ) | (29,000,030 | ) | ||||
Retained earnings | 143,304,213 | 131,638,318 | ||||||
Accumulated other comprehensive loss | (1,426,619 | ) | (1,426,619 | ) | ||||
Total stockholders’ equity | 267,727,294 | 251,933,434 | ||||||
Noncontrolling interests | (625,474 | ) | 0 | |||||
Total equity | 267,101,820 | 251,933,434 | ||||||
Total liabilities and equity | $ | 738,614,356 | $ | 762,948,939 | ||||
Six Months Ended June 30, | Three Months Ended September 30, | |||||||||||||||
2020 | 2021 | 2020 | 2021 | |||||||||||||
Net revenue | $ | 88,033,558 | $ | 107,786,745 | $ | 49,649,659 | $ | 62,902,935 | ||||||||
Operating expenses: | ||||||||||||||||
Operating expenses (including stock-based compensation of $243,517 in 2020 and $247,280 in 2021 and excluding depreciation and amortization shown separately below) | 92,278,792 | 91,462,291 | ||||||||||||||
Corporate expenses (including stock-based compensation of $222,186 in 2020 and $675,720 in 2021) | 8,237,856 | 7,863,143 | ||||||||||||||
Operating expenses (including stock-based compensation of $103,980 in 2020 and $100,688 in 2021 and excluding depreciation and amortization shown separately below) | 41,589,490 | 51,186,064 | ||||||||||||||
Corporate expenses (including stock-based compensation of $124,988 in 2020 and $150,650 in 2021) | 3,712,816 | 3,980,815 | ||||||||||||||
Depreciation and amortization | 5,462,546 | 5,802,824 | 2,912,681 | 2,843,350 | ||||||||||||
Impairment losses | 6,804,412 | 0 | ||||||||||||||
Gain on disposition | 0 | (191,988 | ) | |||||||||||||
Other operating income, net | 0 | (400,000 | ) | |||||||||||||
Other operating expense | 600,000 | 0 | ||||||||||||||
Total operating expenses | 112,783,606 | 104,536,270 | 48,814,987 | 58,010,229 | ||||||||||||
Operating income (loss) | (24,750,048 | ) | 3,250,475 | |||||||||||||
Operating income | 834,672 | 4,892,706 | ||||||||||||||
Non-operating income (expense): | ||||||||||||||||
Interest expense | (8,036,471 | ) | (12,643,440 | ) | (4,544,235 | ) | (7,021,577 | ) | ||||||||
Loss on extinguishment of long-term debt | (2,798,789 | ) | (4,996,731 | ) | ||||||||||||
Other income, net | 98,116 | 46,493 | ||||||||||||||
Other income (expense), net | (42,156 | ) | 12,186 | |||||||||||||
Loss before income taxes | (35,487,192 | ) | (14,343,203 | ) | (3,751,719 | ) | (2,116,685 | ) | ||||||||
Income tax benefit | (8,459,726 | ) | (3,902,280 | ) | (1,031,166 | ) | (515,380 | ) | ||||||||
Loss before equity in earnings of unconsolidated affiliates | (27,027,466 | ) | (10,440,923 | ) | (2,720,553 | ) | (1,601,305 | ) | ||||||||
Equity in earnings of unconsolidated affiliates, net of tax | (86,494 | ) | (56,024 | ) | (4,221 | ) | (19,018 | ) | ||||||||
Net loss | (27,113,960 | ) | (10,496,947 | ) | (2,724,774 | ) | (1,620,323 | ) | ||||||||
Earnings attributable to noncontrolling interest | 542,438 | 129,249 | 339,376 | 0 | ||||||||||||
Net loss attributable to BBGI stockholders | $ | (26,571,522 | ) | (10,367,698 | ) | $ | (2,385,398 | ) | (1,620,323 | ) | ||||||
Net loss attributable to BBGI stockholders per Class A and Class B common share: | ||||||||||||||||
Basic and diluted | $ | (0.95 | ) | $ | (0.35 | ) | $ | (0.08 | ) | $ | (0.06 | ) | ||||
Dividends declared per common share | $ | 0.05 | $ | 0 | ||||||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 27,962,345 | 29,268,717 | 29,154,148 | 29,254,609 | ||||||||||||
Diluted | 27,962,345 | 29,268,717 | 29,154,148 | 29,254,609 |
Six Months Ended June 30, | ||||||||
2020 | 2021 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (27,113,960 | ) | $ | (10,496,947 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Stock-based compensation | 465,703 | 923,000 | ||||||
Provision for bad debts | 3,180,444 | (1,779,188 | ) | |||||
Depreciation and amortization | 5,462,546 | 5,802,824 | ||||||
Impairment losses | 6,804,412 | 0 | ||||||
Gain on disposition | 0 | (191,988 | ) | |||||
Amortization of loan fees | 967,966 | 791,574 | ||||||
Loss on extinguishment of long-term debt | 2,798,789 | 4,996,731 | ||||||
Deferred income taxes | (8,322,642 | ) | (3,902,280 | ) | ||||
Equity in earnings of unconsolidated affiliates | 86,494 | 56,024 | ||||||
Change in operating assets and liabilities: | ||||||||
Accounts receivable | 21,704,800 | 4,835,493 | ||||||
Prepaid expenses | (147,897 | ) | (2,320,101 | ) | ||||
Other assets | 3,398,417 | (1,684,017 | ) | |||||
Accounts payable | 179,507 | (5,837,685 | ) | |||||
Other liabilities | (2,787,003 | ) | 13,446,861 | |||||
Other operating activities | 411,840 | 208,725 | ||||||
Net cash provided by operating activities | 7,089,416 | 4,849,026 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (5,955,130 | ) | (2,553,787 | ) | ||||
Proceeds from dispositions | 0 | 362,500 | ||||||
Payments for investments | (1,000,000 | ) | 0 | |||||
Net cash used in investing activities | (6,955,130 | ) | (2,191,287 | ) | ||||
Cash flows from financing activities: | ||||||||
Issuance of debt | 14,000,000 | 310,000,000 | ||||||
Payments on debt | (4,500,000 | ) | (268,500,000 | ) | ||||
Payment of debt issuance costs | (2,581,163 | ) | (7,604,215 | ) | ||||
Reduction of finance lease liabilities | (32,410 | ) | (35,086 | ) | ||||
Dividends paid | (2,795,504 | ) | 0 | |||||
Purchase of treasury stock | (31,919 | ) | (136,779 | ) | ||||
Net cash provided by financing activities | 4,059,004 | 33,723,920 | ||||||
Net increase in cash and cash equivalents | 4,193,290 | 36,381,659 | ||||||
Cash and cash equivalents at beginning of period | 18,648,171 | 20,759,432 | ||||||
Cash and cash equivalents at end of period | $ | 22,841,461 | $ | 57,141,091 | ||||
Cash paid for interest | $ | 7,330,654 | $ | 1,837,493 | ||||
Cash paid for income taxes | $ | 115,400 | $ | 1,526,303 | ||||
Supplemental disclosure ofnon-cash investing and financing activities: | ||||||||
Acquisition of noncontrolling interest | $ | 0 | $ | 4,490,130 | ||||
Extinguishment of trade sales payable | $ | 0 | $ | 934,500 | ||||
Class A common stock returned to treasury stock | $ | 0 | $ | 670,594 | ||||
Nine Months Ended September 30, | ||||||||
2020 | 2021 | |||||||
Net revenue | $ | 137,683,217 | $ | 170,689,680 | ||||
Operating expenses: | ||||||||
Operating expenses (including stock-based compensation of $347,497 in 2020 and $347,968 in 2021 and excluding depreciation and amortization shown separately below) | 133,868,282 | 142,648,355 | ||||||
Corporate expenses (including stock-based compensation of $347,174 in 2020 and $826,370 in 2021) | 11,950,672 | 11,843,958 | ||||||
Depreciation and amortization | 8,375,227 | 8,646,174 | ||||||
Impairment losses | 6,804,412 | 0 | ||||||
Gain on disposition | 0 | (191,988 | ) | |||||
Other operating (income) expense, net | 600,000 | (400,000 | ) | |||||
Total operating expenses | 161,598,593 | 162,546,499 | ||||||
Operating income (loss) | (23,915,376 | ) | 8,143,181 | |||||
Non-operating income (expense): | ||||||||
Interest expense | (12,580,706 | ) | (19,665,017 | ) | ||||
Loss on extinguishment of long-term debt | (2,798,789 | ) | (4,996,731 | ) | ||||
Other income, net | 55,960 | 58,679 | ||||||
Loss before income taxes | (39,238,911 | ) | (16,459,888 | ) | ||||
Income tax benefit | (9,490,892 | ) | (4,417,660 | ) | ||||
Loss before equity in earnings of unconsolidated affiliates | (29,748,019 | ) | (12,042,228 | ) | ||||
Equity in earnings of unconsolidated affiliates, net of tax | (90,715 | ) | (75,042 | ) | ||||
Net loss | (29,838,734 | ) | (12,117,270 | ) | ||||
Earnings attributable to noncontrolling interest | 881,814 | 129,249 | ||||||
Net loss attributable to BBGI stockholders | $ | (28,956,920 | ) | (11,988,021 | ) | |||
Net loss attributable to BBGI stockholders per Class A and Class B common share: | ||||||||
Basic and diluted | $ | (1.02 | ) | $ | (0.41 | ) | ||
Dividends declared per common share | $ | 0.05 | $ | 0 | ||||
Weighted average shares outstanding: | ||||||||
Basic | 28,362,512 | 29,263,963 | ||||||
Diluted | 28,362,512 | 29,263,963 |
Nine Months Ended September 30, | ||||||||
2020 | 2021 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (29,838,734 | ) | $ | (12,117,270 | ) | ||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
Stock-based compensation | 694,671 | 1,174,338 | ||||||
Provision for bad debts | 3,432,813 | (1,487,150 | ) | |||||
Depreciation and amortization | 8,375,227 | 8,646,174 | ||||||
Impairment losses | 6,804,412 | 0 | ||||||
Non-cash interest expense | 290,426 | 0 | ||||||
Gain on disposition | 0 | (191,988 | ) | |||||
Amortization of loan fees | 1,441,634 | 1,171,785 | ||||||
Loss on extinguishment of long-term debt | 2,798,789 | 4,996,731 | ||||||
Deferred income taxes | (8,972,361 | ) | (4,417,660 | ) | ||||
Equity in earnings of unconsolidated affiliates | 90,715 | 75,042 | ||||||
Change in operating assets and liabilities: | ||||||||
Accounts receivable | 12,586,295 | 1,685,007 | ||||||
Prepaid expenses | (1,978,601 | ) | (6,254,604 | ) | ||||
Other assets | 3,164,693 | (1,656,170 | ) | |||||
Accounts payable | 2,900,129 | (5,567,791 | ) | |||||
Other liabilities | (1,295,347 | ) | 7,796,383 | |||||
Other operating activities | 305,806 | 170,172 | ||||||
Net cash provided by (used in) operating activities | 800,567 | (5,977,001 | ) | |||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (6,996,619 | ) | (3,704,750 | ) | ||||
Proceeds from dispositions | 0 | 362,500 | ||||||
Proceeds from life insurance | 0 | 3,000,000 | ||||||
Payments for investments | (1,000,000 | ) | 0 | |||||
Net cash used in investing activities | (7,996,619 | ) | (342,250 | ) | ||||
Cash flows from financing activities: | ||||||||
Issuance of debt | 14,000,000 | 310,000,000 | ||||||
Payments on debt | (4,500,000 | ) | (268,500,000 | ) | ||||
Payment of debt issuance costs | (2,581,163 | ) | (7,604,215 | ) | ||||
Reduction of finance lease liabilities | (48,615 | ) | (52,629 | ) | ||||
Dividends paid | (2,795,504 | ) | 0 | |||||
Purchase of treasury stock | (34,412 | ) | (141,579 | ) | ||||
Net cash provided by financing activities | 4,040,306 | 33,701,577 | ||||||
Net increase (decrease) in cash and cash equivalents | (3,155,746 | ) | 27,382,326 | |||||
Cash and cash equivalents at beginning of period | 18,648,171 | 20,759,432 | ||||||
Cash and cash equivalents at end of period | $ | 15,492,425 | $ | 48,141,758 | ||||
Cash paid for interest | $ | 10,871,306 | $ | 14,703,825 | ||||
Cash paid for income taxes | $ | 115,400 | $ | 1,526,303 | ||||
Supplemental disclosure of non-cash investing and financing activities: | ||||||||
Acquisition of noncontrolling interest | $ | 0 | $ | 4,490,130 | ||||
Extinguishment of trade sales payable | $ | 0 | $ | 934,500 | ||||
Class A common stock returned to treasury stock | $ | 0 | $ | 670,594 | ||||
Class A common stock issued for debt repayment | $ | 2,250,000 | $ | 0 | ||||
(1) Interim Financial Statements |
(2) FCC Licenses |
Revenue growth rates | (14.1)% - 7.9% | |
Market revenue shares at maturity | 0.6% -39.0% | |
Operating income margins at maturity | 26.5% -35.4% | |
Discount rate | 9.5% |
December 31, | June 30, | |||||||
2020 | 2021 | |||||||
Secured notes | $ | — | $ | 300,000,000 | ||||
PPP loan | — | 10,000,000 | ||||||
Credit facility—term loan | 238,000,000 | — | ||||||
Credit facility—revolving credit facility | 20,000,000 | — | ||||||
Promissory note | 5,500,000 | — | ||||||
263,500,000 | 310,000,000 | |||||||
Less unamortized debt issuance costs | (5,154,620 | ) | (6,970,530 | ) | ||||
$ | 258,345,380 | $ | 303,029,470 | |||||
December 31, 2020 | September 30, 2021 | |||||||
Secured notes | $ | — | $ | 300,000,000 | ||||
PPP loan | — | 10,000,000 | ||||||
Credit facility - term loan | 238,000,000 | — | ||||||
Credit facility - revolving credit facility | 20,000,000 | — | ||||||
Promissory note | 5,500,000 | — | ||||||
263,500,000 | 310,000,000 | |||||||
Less unamortized debt issuance costs | (5,154,620 | ) | (6,590,319 | ) | ||||
$ | 258,345,380 | $ | 303,409,681 | |||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2020 | 2021 | 2020 | 2021 | |||||||||||||
Beginning balance | $ | 274,378,038 | $ | 252,739,797 | $ | 284,471,958 | $ | 267,101,820 | ||||||||
Stock-based compensation | 199,264 | 402,199 | 465,703 | 923,000 | ||||||||||||
Acquisition of noncontrolling interest | — | — | 0 | (4,490,130 | ) | |||||||||||
Purchase of treasury stock | (16,044 | ) | (22,471 | ) | (31,919 | ) | (807,373 | ) | ||||||||
Net income (loss) | (18,167,797 | ) | 187,694 | (27,113,960 | ) | (10,496,947 | ) | |||||||||
Elimination of noncontrolling interest | — | — | — | 1,076,849 | ||||||||||||
Cash dividends | — | — | (1,398,321 | ) | — | |||||||||||
Noncontrolling interest created in consolidation | 667,654 | — | 667,654 | — | ||||||||||||
Ending balance | $ | 257,061,115 | $ | 253,307,219 | $ | 257,061,115 | $ | 253,307,219 | ||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2020 | 2021 | 2020 | 2021 | |||||||||||||
Beginning balance | $ | 257,061,115 | $ | 253,307,219 | $ | 284,471,958 | $ | 267,101,820 | ||||||||
Issuance of common stock | 2,540,425 | — | 2,540,425 | — | ||||||||||||
Stock-based compensation | 228,968 | 251,338 | 694,671 | 1,174,338 | ||||||||||||
Acquisition of noncontrolling interest | — | — | — | (4,490,130 | ) | |||||||||||
Purchase of treasury stock | (2,493 | ) | (4,800 | ) | (34,412 | ) | (812,173 | ) | ||||||||
Net loss | (2,724,774 | ) | (1,620,323 | ) | (29,838,734 | ) | (12,117,270 | ) | ||||||||
Elimination of noncontrolling interest | — | — | — | 1,076,849 | ||||||||||||
Cash dividends | — | — | (1,398,321 | ) | — | |||||||||||
Noncontrolling interest created in consolidation | — | — | 667,654 | — | ||||||||||||
Ending balance | $ | 257,103,241 | $ | 251,933,434 | $ | 257,103,241 | $ | 251,933,434 | ||||||||
(5) Revenue |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||
2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | |||||||||||||||||||||||||
Audio | $ | 25,494,216 | $ | 51,215,234 | $ | 76,407,194 | $ | 92,944,836 | $ | 44,159,807 | $ | 54,043,650 | $ | 120,567,001 | $ | 146,988,486 | ||||||||||||||||
Digital | 4,066,257 | 7,983,343 | 9,350,282 | 13,747,071 | 4,994,487 | 8,318,112 | 14,344,769 | 22,065,183 | ||||||||||||||||||||||||
Other | 822,659 | 376,128 | 2,276,082 | 1,094,838 | 495,365 | 541,173 | 2,771,447 | 1,636,011 | ||||||||||||||||||||||||
$ | 30,383,132 | $ | 59,574,705 | $ | 88,033,558 | $ | 107,786,745 | $ | 49,649,659 | $ | 62,902,935 | $ | 137,683,217 | $ | 170,689,680 | |||||||||||||||||
December 31, | June 30, | |||||||
2020 | 2021 | |||||||
Deferred revenue | $ | 3,732,890 | $ | 3,647,634 |
December 31, 2020 | September 30, 2021 | |||||||
Deferred revenue | $ | 3,732,890 | $ | 3,247,752 |
Three months ended June 30, | Six months ended Jun e 30, | |||||||||||||||
2020 | 2021 | 2020 | 2021 | |||||||||||||
Losses on receivables | $ | 253,553 | $ | 602,253 | $ | 1,088,478 | $ | 1,697,566 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2020 | 2021 | 2020 | 2021 | |||||||||||||
Losses on receivables | $ | 965,864 | $ | 99,836 | $ | 2,054,342 | $ | 1,797,402 |
December 31, 2020 | September 30, 2021 | |||||||
Trade sales receivable | $ | 956,999 | $ | 886,223 | ||||
Trade sales payable | 892,543 | 804,354 |
December 31, | June 30, | |||||||
2020 | 2021 | |||||||
Trade sales receivable | $ | 956,999 | $ | 783,143 | ||||
Trade sales payable | 892,543 | 756,900 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2020 | 2021 | 2020 | 2021 | |||||||||||||
Trade sales revenue | $ | 575,636 | $ | 1,075,325 | $ | 2,543,896 | $ | 2,004,922 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2020 | 2021 | 2020 | 2021 | |||||||||||||
Trade sales revenue | $ | 1,211,223 | $ | 1,781,124 | $ | 3,755,119 | $ | 3,786,046 |
(6) Stock-Based Compensation |
Units | Weighted- Average Grant - DateFair Value | Units | Weighted- Average Grant-Date Fair Value | |||||||||||||
Unvested as of April 1, 2021 | 415,168 | $ | 3.79 | |||||||||||||
Unvested as of July 1, 2021 | 677,052 | $ | 3.30 | |||||||||||||
Granted | 305,232 | 2.70 | 0 | 0 | ||||||||||||
Vested | (37,848 | ) | 3.80 | 0 | 0 | |||||||||||
Forfeited | (5,500 | ) | 3.13 | 0 | 0 | |||||||||||
Unvested as of June 30, 2021 | 677,052 | $ | 3.30 | |||||||||||||
Unvested as of September 30, 2021 | 677,052 | $ | 3.30 | |||||||||||||
Shares | Weighted- Average Grant- Date Fair Value | |||||||
Unvested as of April 1, 2021 | 12,500 | $ | 4.84 | |||||
Vested | 0 | 0 | ||||||
Forfeited | 0 | 0 | ||||||
Unvested as of June 30, 2021 | 12,500 | $ 4.84 | ||||||
Shares | Weighted- Average Grant-Date Fair Value | |||||||
Unvested as of July 1, 2021 | 12,500 | $ | 4.84 | |||||
Vested | (7,500 | ) | 4.90 | |||||
Forfeited | 0 | 0 | ||||||
Unvested as of September 30, 2021 | 5,000 | $ | 4.75 | |||||
Earnings |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2020 | 2021 | 2020 | 2021 | |||||||||||||
Net income (loss) attributable to BBGI stockholders | $ | (17,734,961) | $ | 187,694 | $ | (26,571,522) | $ | (10,367,698) | ||||||||
Weighted-average shares outstanding: | ||||||||||||||||
Basic | 27,977,113 | 29,235,009 | 27,962,345 | 29,268,717 | ||||||||||||
Effect of dilutive restricted stock units and restricted stock | 0 | 89,605 | 0 | 0 | ||||||||||||
Diluted | 27,977,113 | 29,324,614 | 27,962,345 | 29,268,717 | ||||||||||||
Net income (loss) attributable to BBGI stockholders per Class A and Class B common share – basic and diluted | $ | (0.63) | $ | 0.01 | $ | (0.95) | $ | (0.35) | ||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2020 | 2021 | 2020 | 2021 | |||||||||||||
Net loss attributable to BBGI stockholders | $ | (2,385,398 | ) | $ | (1,620,323 | ) | $ | (28,956,920 | ) | $ | (11,988,021 | ) | ||||
Weighted-average shares outstanding: | ||||||||||||||||
Basic | 29,154,148 | 29,254,609 | 28,362,512 | 29,263,963 | ||||||||||||
Effect of dilutive restricted stock units and restricted stock | 0 | 0 | 0 | 0 | ||||||||||||
Diluted | 29,154,148 | 29,254,609 | 28,362,512 | 29,263,963 | ||||||||||||
Net loss attributable to BBGI stockholders per Class A and Class B common share – basic and diluted | $ | (0.08 | ) | $ | ( 0.06 | ) | $ | (1.02 | ) | $ | (0.41 | ) | ||||
(10) Related Party Transactions |
(11) Financial Instruments |
(12) Segment Information |
Audio | Digital | Other | Corporate | Total | Audio | Digital | Other | Corporate | Total | |||||||||||||||||||||||||||||||
Net revenue | $ | 51,215,234 | $ | 7,983,343 | $ | 376,128 | $ | 0 | $ | 59,574,705 | $ | 54,043,650 | $ | 8,318,112 | $ | 541,173 | $ | 0 | $ | 62,902,935 | ||||||||||||||||||||
Operating expenses | 39,715,005 | 7,910,418 | 868,997 | 0 | 48,494,420 | 42,287,054 | 8,047,207 | 851,803 | 0 | 51,186,064 | ||||||||||||||||||||||||||||||
Corporate expenses | 0 | 0 | 0 | 3,957,854 | 3,957,854 | 0 | 0 | 0 | 3,980,815 | 3,980,815 | ||||||||||||||||||||||||||||||
Depreciation and amortization | 1,911,236 | 4,142 | 796,019 | 139,526 | 2,850,923 | 1,896,729 | 4,371 | 796,018 | 146,232 | 2,843,350 | ||||||||||||||||||||||||||||||
Other operating income | 0 | 0 | 0 | (1,500,000 | ) | (1,500,000 | ) | |||||||||||||||||||||||||||||||||
Operating income (loss) | $ | 9,588,993 | $ | 68,783 | $ | (1,288,888) | $ | (2,597,380) | $ | 5,771,508 | $ | 9,859,867 | $ | 266,534 | $ | (1,106,648 | ) | $ | (4,127,047 | ) | $ | 4,892,706 | ||||||||||||||||||
Audio | Digital | Other | Corporate | Total | ||||||||||||||||
Net revenue | $ | 146,988,486 | $ | 22,065,183 | $ | 1,636,011 | $ | 0 | $ | 170,689,680 | ||||||||||
Operating expenses | 116,737,528 | 23,215,540 | 2,695,287 | 0 | 142,648,355 | |||||||||||||||
Corporate expenses | 0 | 0 | 0 | 11,843,958 | 11,843,958 | |||||||||||||||
Depreciation and amortization | 5,812,342 | 8,513 | 2,403,940 | 421,379 | 8,646,174 | |||||||||||||||
Gain on disposition | (191,988 | ) | 0 | 0 | 0 | (191,988 | ) | |||||||||||||
Other operating (income) expense, net | 500,000 | 0 | 0 | (900,000 | ) | (400,000 | ) | |||||||||||||
Operating income (loss) | $ | 24,130,604 | $ | (1,158,870 | ) | $ | (3,463,216 | ) | $ | (11,365,337 | ) | $ | 8,143,181 | |||||||
Audio | Digital | Other | Corporate | Total | ||||||||||||||||
Net revenue | $ | 92,944,836 | $ | 13,747,071 | $ | 1,094,838 | $ | 0 | $ | 107,786,745 | ||||||||||
Operating expenses | 74,450,474 | 15,168,333 | 1,843,484 | 0 | 91,462,291 | |||||||||||||||
Corporate expenses | 0 | 0 | 0 | 7,863,143 | 7,863,143 | |||||||||||||||
Depreciation and amortization | 3,915,613 | 4,142 | 1,607,922 | 275,147 | 5,802,824 | |||||||||||||||
Gain on disposition | (191,988 | ) | 0 | 0 | 0 | (191,988 | ) | |||||||||||||
Other operating (income) expense, net | 500,000 | 0 | 0 | (900,000 | ) | (400,000 | ) | |||||||||||||
Operating income (loss) | $ | 14,270,737 | $ | (1,425,404) | $ | (2,356,568) | $ | (7,238,290) | $ | 3,250,475 | ||||||||||
Audio | Digital | Other | Corporate | Total | ||||||||||||||||
Capital expenditures | $ | 1,989,721 | $ | 87,432 | $ | 2,852 | $ | 473,782 | $ | 2,553,787 | ||||||||||
Property and equipment, net | 46,920,430 | 83,290 | 23,329 | 4,884,819 | 51,911,868 | |||||||||||||||
FCC licenses | 508,413,913 | 0 | 0 | 0 | 508,413,913 | |||||||||||||||
Goodwill | 25,377,447 | 0 | 3,219,100 | 0 | 28,596,547 | |||||||||||||||
Other intangibles, net | 2,046,118 | 0 | 22,012,773 | 179,663 | 24,238,554 |
Audio | Digital | Other | Corporate | Total | ||||||||||||||||
Capital expenditures | $ | 3,098,655 | $ | 87,432 | $ | 2,852 | $ | 515,811 | $ | 3,704,750 | ||||||||||
Property and equipment, net | 46,154,908 | 78,919 | 22,618 | 4,780,616 | 51,037,061 | |||||||||||||||
FCC licenses | 508,413,913 | 0 | 0 | 0 | 508,413,913 | |||||||||||||||
Goodwill | 25,377,447 | 0 | 3,219,100 | 0 | 28,596,547 | |||||||||||||||
Other intangibles, net | 2,010,106 | 0 | 21,238,466 | 179,663 | 23,428,235 |
Three Months ended June 30, | Change | Three Months ended September 30, | Change | |||||||||||||||||||||||||||||
2020 | 2021 | $ | % | 2020 | 2021 | $ | % | |||||||||||||||||||||||||
Net revenue | $ | 30,383,132 | $ | 59,574,705 | $ | 29,191,573 | 96.1 | % | $ | 49,649,659 | $ | 62,902,935 | $ | 13,253,276 | 26.7 | % | ||||||||||||||||
Operating expenses | 41,378,315 | 48,494,420 | 7,116,105 | 17.2 | 41,589,490 | 51,186,064 | 9,596,574 | 23.1 | ||||||||||||||||||||||||
Corporate expenses | 3,724,764 | 3,957,854 | 233,090 | 6.3 | 3,712,816 | 3,980,815 | 267,999 | 7.2 | ||||||||||||||||||||||||
Other operating income, net | — | 1,500,000 | 1,500,000 | — | ||||||||||||||||||||||||||||
Other operating expense | 600,000 | — | (600,000 | ) | (100.0 | ) | ||||||||||||||||||||||||||
Interest expense | 3,851,660 | 6,865,369 | 3,013,709 | 78.2 | 4,544,235 | 7,021,577 | 2,477,342 | 54.5 | ||||||||||||||||||||||||
Loss on modification of long-term debt | 2,798,789 | — | (2,798,789 | ) | (100.0 | ) | ||||||||||||||||||||||||||
Income tax benefit | (6,041,946 | ) | (1,299,394 | ) | 4,742,552 | 78.5 | (1,031,166 | ) | (515,380 | ) | 515,786 | 50.0 | ||||||||||||||||||||
Net income (loss) | (18,167,797 | ) | 187,694 | 18,355,491 | 101.0 | |||||||||||||||||||||||||||
Net loss | (2,724,774 | ) | (1,620,323 | ) | 1,104,451 | 40.5 |
Six Months ended June 30, | Change | Nine Months ended September 30, | Change | |||||||||||||||||||||||||||||
2020 | 2021 | $ | % | 2020 | 2021 | $ | % | |||||||||||||||||||||||||
Net revenue | $ | 88,033,558 | $ | 107,786,745 | $ | 19,753,187 | 22.4 | % | $ | 137,683,217 | $ | 170,689,680 | $ | 33,006,463 | 24.0 | % | ||||||||||||||||
Operating expenses | 92,278,792 | 91,462,291 | (816,501 | ) | (0.9 | ) | 133,868,282 | 142,648,355 | 8,780,073 | 6.6 | ||||||||||||||||||||||
Corporate expenses | 8,237,856 | 7,863,143 | (374,713 | ) | (4.5 | ) | 11,950,672 | 11,843,958 | (106,714 | ) | (0.9 | ) | ||||||||||||||||||||
Impairment losses | 6,804,412 | — | (6,804,412 | ) | (100.0 | ) | 6,804,412 | — | (6,804,412 | ) | (100.0 | ) | ||||||||||||||||||||
Other operating income, net | — | 400,000 | 400,000 | — | ||||||||||||||||||||||||||||
Other operating (income) expense, net | 600,000 | (400,000 | ) | (1,000,000 | ) | (166.7 | ) | |||||||||||||||||||||||||
Interest expense | 8,036,471 | 12,643,440 | 4,606,969 | 57.3 | 12,580,706 | 19,665,017 | 7,084,311 | 56.3 | ||||||||||||||||||||||||
Loss on extinguishment of long-term debt | 2,798,789 | 4,996,731 | 2,197,942 | 78.5 | 2,798,789 | 4,996,731 | 2,197,942 | 78.5 | ||||||||||||||||||||||||
Income tax benefit | (8,459,726 | ) | (3,902,280 | ) | 4,557,446 | 53.9 | (9,490,892 | ) | (4,417,660 | ) | 5,073,232 | 53.5 | ||||||||||||||||||||
Net loss | (27,113,960 | ) | (10,496,947 | ) | 16,617,013 | 61.3 | (29,838,734 | ) | (12,117,270 | ) | 17,721,464 | 59.4 |
Six Months ended June 30, | Nine Months ended September 30, | |||||||||||||||
2020 | 2021 | 2020 | 2021 | |||||||||||||
Net cash provided by operating activities | $ | 7,089,416 | $ | 4,849,026 | ||||||||||||
Net cash provided by (used in) operating activities | $ | 800,567 | $ | (5,977,001) | ||||||||||||
Net cash used in investing activities | (6,955,130 | ) | (2,191,287 | ) | (7,996,619 | ) | (342,250 | ) | ||||||||
Net cash provided by financing activities | 4,059,004 | 33,723,920 | 4,040,306 | 33,701,577 | ||||||||||||
Net increase in cash and cash equivalents | $ | 4,193,290 | $ | 36,381,659 | ||||||||||||
Net increase (decrease) in cash and cash equivalents | $ | (3,155,746 | ) | $ | 27,382,326 | |||||||||||
ITEM 3. |
ITEM 4. |
ITEM 1. |
ITEM 1A. |
ITEM 2. |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Program | ||||||||||||
April 1 – 30, 2021 | 3,125 | $ | 2.82 | — | — | |||||||||||
May 1 – 31, 2021 | 2,000 | 2.71 | — | — | ||||||||||||
June 1 – 30, 2021 | 2,875 | 2.87 | — | — | ||||||||||||
Total | 8,000 | |||||||||||||||
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Program | ||||||||||||
July 1 – 31, 2021 | — | — | — | — | ||||||||||||
August 1 – 31, 2021 | — | — | — | — | ||||||||||||
September 1 – 30, 2021 | 1,875 | $ | 2.56 | — | — | |||||||||||
Total | 1,875 | |||||||||||||||
ITEM 3. |
ITEM 4. |
ITEM 5. |
ITEM 6. | EXHIBITS. |
BEASLEY BROADCAST GROUP, INC. | ||||||
Dated: | /s/ Caroline Beasley | |||||
Name: Caroline Beasley | ||||||
Title: Chief Executive Officer (principal executive officer) | ||||||
Dated: | /s/ Marie Tedesco | |||||
Name: Marie Tedesco | ||||||
Title: Chief Financial Officer (principal financial and accounting officer) |