☒ | 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. | Condensed Consolidated Financial Statements. | 3 | ||||||||
Notes to Condensed Consolidated Financial Statements. | ||||||||||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. | |||||||||
Item 3. | Quantitative and Qualitative Disclosures About Market Risk. | |||||||||
Item 4. | Controls and Procedures. | |||||||||
Item 1. | Legal Proceedings. | |||||||||
Item 1A. | Risk Factors. | |||||||||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds. | |||||||||
Item 3. | Defaults Upon Senior Securities. | |||||||||
Item 4. | Mine Safety Disclosures. | |||||||||
Item 5. | Other Information. | |||||||||
Item 6. | Exhibits. | |||||||||
December 31, | June 30, | |||||||||||||||
December 31, 2021 | March 31, 2022 | 2021 | 2022 | |||||||||||||
ASSETS | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 51,378,642 | $ | 50,706,697 | $ | 51,378,642 | $ | 45,918,446 | ||||||||
Accounts receivable, less allowance for doubtful accounts of $1,720,477 in 2021 and $1,510,422 in 2022 | 53,378,437 | 42,112,420 | ||||||||||||||
Accounts receivable, less allowance for doubtful accounts of $1,720,477 in 2021 and $1,648,342 in 2022 | 53,378,437 | 45,628,769 | ||||||||||||||
Prepaid expenses | 4,044,056 | 3,830,697 | 4,044,056 | 6,330,503 | ||||||||||||
Other current assets | 3,397,418 | 2,864,958 | 3,397,418 | 3,983,998 | ||||||||||||
Total current assets | 112,198,553 | 99,514,772 | 112,198,553 | 101,861,716 | ||||||||||||
Property and equipment, net | 49,843,166 | 49,425,164 | 49,843,166 | 52,658,061 | ||||||||||||
Operating lease right-of-use | 34,155,175 | 34,398,390 | 34,155,175 | 36,970,653 | ||||||||||||
Finance lease right-of-use | 320,000 | 316,667 | 320,000 | 313,333 | ||||||||||||
FCC licenses | 508,413,913 | 506,556,687 | 508,413,913 | 503,003,909 | ||||||||||||
Goodwill | 28,596,547 | 28,596,547 | 28,596,547 | 22,739,996 | ||||||||||||
Other intangibles, net | 22,697,207 | 22,035,202 | 22,697,207 | 23,373,197 | ||||||||||||
Other assets | 5,863,501 | 5,789,238 | 5,863,501 | 7,688,682 | ||||||||||||
Total assets | $ | 762,088,062 | $ | 746,632,667 | $ | 762,088,062 | $ | 748,609,547 | ||||||||
LIABILITIES AND EQUITY | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Current installments of long-term debt | $ | — | $ | 2,000,000 | ||||||||||||
Accounts payable | $ | 6,995,081 | $ | 7,356,456 | 6,995,081 | 9,637,062 | ||||||||||
Operating lease liabilities | 7,693,831 | 7,666,536 | 7,693,831 | 7,385,483 | ||||||||||||
Finance lease liabilities | 1,945 | 0 | 1,945 | — | ||||||||||||
Other current liabilities | 29,811,226 | 22,786,966 | 29,811,226 | 30,842,734 | ||||||||||||
Total current liabilities | 44,502,083 | 37,809,958 | 44,502,083 | 49,865,279 | ||||||||||||
Due to related parties | 372,193 | 348,015 | 372,193 | 101,087 | ||||||||||||
Long-term debt, net of unamortized debt issuance costs | 293,789,892 | 294,170,103 | ||||||||||||||
Long-term debt, net of current installments and unamortized debt issuance costs | 293,789,892 | 287,641,142 | ||||||||||||||
Operating lease liabilities | 28,747,450 | 29,029,363 | 28,747,450 | 36,635,544 | ||||||||||||
Deferred tax liabilities | 115,689,317 | 109,832,130 | 115,689,317 | 112,930,112 | ||||||||||||
Other long-term liabilities | 15,904,829 | 15,902,094 | 15,904,829 | 15,899,359 | ||||||||||||
Total liabilities | 499,005,764 | 487,091,663 | 499,005,764 | 503,072,523 | ||||||||||||
Commitments and contingencies | 0 | 0 | 0 | |||||||||||||
Stockholders’ equity: | ||||||||||||||||
Preferred stock, $0.001 par value; 10,000,000 shares authorized; 0ne issued | 0— | 0— | 0— | 0— | ||||||||||||
Class A common stock, $0.001 par value; 150,000,000 shares authorized; 16,249,312 issued and 12,696,857 outstanding in 2021; 16,292,646 issued and 12,723,984 outstanding in 2022 | 16,248 | 16,291 | ||||||||||||||
Class A common stock, $0.001 par value; 150,000,000 shares authorized; 16,249,312 issued and 12,696,857 outstanding in 2021; 16,503,979 issued and 12,880,701 outstanding in 2022 | 16,248 | 16,502 | ||||||||||||||
Class B common stock, $0.001 par value; 75,000,000 shares authorized; 16,662,743 issued and outstanding in 2021 and 2022 | 16,662 | 16,662 | 16,662 | 16,662 | ||||||||||||
Additional paid-in capital | 150,896,611 | 151,123,818 | 150,896,611 | 151,502,437 | ||||||||||||
Treasury stock, Class A common stock; 3,552,455 shares in 2021; 3,568,662 shares in 2022 | (29,021,360 | ) | (29,050,959 | ) | ||||||||||||
Treasury stock, Class A common stock; 3,552,455 shares in 2021; 3,623,278 shares in 2022 | (29,021,360 | ) | (29,127,067 | ) | ||||||||||||
Retained earnings | 142,220,494 | 138,481,549 | 142,220,494 | 124,174,847 | ||||||||||||
Accumulated other comprehensive loss | (1,046,357 | ) | (1,046,357 | ) | (1,046,357 | ) | (1,046,357 | ) | ||||||||
Total stockholders’ equity | 263,082,298 | 259,541,004 | 263,082,298 | 245,537,024 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 762,088,062 | $ | 746,632,667 | $ | 762,088,062 | $ | 748,609,547 | ||||||||
Three Months Ended June 30, | ||||||||
2021 | 2022 | |||||||
Net revenue | $ | 59,574,705 | $ | 64,810,450 | ||||
Operating expenses: | ||||||||
Operating expenses (including stock-based compensation of $176,349 in 2021 and $75,368 in 2022 and excluding depreciation and amortization shown separately below) | 48,494,420 | 53,626,592 | ||||||
Corporate expenses (including stock-based compensation of $225,850 in 2021 and $303,462 in 2022) | 3,957,854 | 4,567,470 | ||||||
Depreciation and amortization | 2,850,923 | 2,451,102 | ||||||
Impairment losses | — | 8,619,097 | ||||||
Other operating income, net | (1,500,000 | ) | — | |||||
Total operating expenses | 53,803,197 | 69,264,261 | ||||||
Operating income (loss) | 5,771,508 | (4,453,811 | ) | |||||
Non-operating income (expense): | ||||||||
Interest expense | (6,865,369 | ) | (6,823,217 | ) | ||||
Other income, net | 8,080 | 190,210 | ||||||
Loss before income taxes | (1,085,781 | ) | (11,086,818 | ) | ||||
Income tax expense (benefit) | (1,299,394 | ) | 3,554,469 | |||||
Income (loss) before equity in earnings of unconsolidated affiliates | 213,613 | (14,641,287 | ) | |||||
Equity in earnings of unconsolidated affiliates, net of tax | (25,919 | ) | 186,570 | |||||
Net income (loss) | 187,694 | (14,454,717 | ) | |||||
Net income (loss) per Class A and Class B common share: | ||||||||
Basic and diluted | $ | 0.01 | $ | (0.49 | ) | |||
Weighted average shares outstanding: | ||||||||
Basic | 29,235,009 | 29,418,951 | ||||||
Diluted | 29,324,614 | 29,418,951 |
Three Months Ended March 31, | ||||||||
2021 | 2022 | |||||||
Net revenue | $ | 48,212,040 | $ | 55,720,268 | ||||
Operating expenses: | ||||||||
Operating expenses (including stock-based compensation of $70,931 in 2021 and $78,223 in 2022 and excluding depreciation and amortization shown separately below) | 42,967,871 | 49,830,436 | ||||||
Corporate expenses (including stock-based compensation of $449,870 in 2021 and $149,027 in 2022) | 3,905,289 | 4,233,460 | ||||||
Depreciation and amortization | 2,951,901 | 2,515,900 | ||||||
Impairment loss | 0 | 1,857,226 | ||||||
Gain on disposition | (191,988 | ) | 0 | |||||
Other operating expense s | 1,100,000 | 0 | ||||||
Total operating expenses | 50,733,073 | 58,437,022 | ||||||
Operating loss | (2,521,033 | ) | (2,716,754 | ) | ||||
Non-operating income (expense): | ||||||||
Interest expense | (5,778,071 | ) | (6,849,037 | ) | ||||
Loss on extinguishment of long-term debt | (4,996,731 | ) | 0 | |||||
Other income, net | 38,413 | 872 | ||||||
Loss before income taxes | (13,257,422 | ) | (9,564,919 | ) | ||||
Income tax benefit | (2,602,886 | ) | (5,849,318 | ) | ||||
Loss before equity in earnings of unconsolidated affiliates | (10,654,536 | ) | (3,715,601 | ) | ||||
Equity in earnings of unconsolidated affiliates, net of tax | (30,105 | ) | (23,344 | ) | ||||
Net loss | (10,684,641 | ) | (3,738,945 | ) | ||||
Earnings attributable to noncontrolling interest | 129,249 | 0 | ||||||
Net loss attributable to BBGI stockholders | $ | (10,555,392 | ) | (3,738,945 | ) | |||
Net loss attributable to BBGI stockholders per Class A and Class B common share: | ||||||||
Basic and diluted | $ | (0.36 | ) | $ | (0.13 | ) | ||
Weighted average shares outstanding: | ||||||||
Basic and diluted | 29,302,799 | 29,370,789 |
Six Months Ended June 30, | ||||||||
2021 | 2022 | |||||||
Net revenue | $ | 107,786,745 | $ | 120,530,718 | ||||
Operating expenses: | ||||||||
Operating expenses (including stock-based compensation of $247,280 in 2021 and $153,591 in 2022 and excluding depreciation and amortization shown separately below) | 91,462,291 | 103,636,141 | ||||||
Corporate expenses (including stock-based compensation of $675,720 in 2021 and $452,489 in 2022) | 7,863,143 | 8,800,930 | ||||||
Depreciation and amortization | 5,802,824 | 4,967,002 | ||||||
Impairment losses | — | 10,476,323 | ||||||
Gain on disposition | (191,988 | ) | — | |||||
Other operating income, net | (400,000 | ) | — | |||||
Total operating expenses | 104,536,270 | 127,880,396 | ||||||
Operating income (loss) | 3,250,475 | (7,349,678 | ) | |||||
Non-operating income (expense): | ||||||||
Interest expense | (12,643,440 | ) | (13,672,254 | ) | ||||
Loss on extinguishment of long-term debt | (4,996,731 | ) | — | |||||
Other income, net | 46,493 | 191,082 | ||||||
Loss before income taxes | (14,343,203 | ) | (20,830,850 | ) | ||||
Income tax benefit | (3,902,280 | ) | (2,621,977 | ) | ||||
Loss before equity in earnings of unconsolidated affiliates | (10,440,923 | ) | (18,208,873 | ) | ||||
Equity in earnings of unconsolidated affiliates, net of tax | (56,024 | ) | 163,226 | |||||
Net loss | (10,496,947 | ) | (18,045,647 | ) | ||||
Earnings attributable to noncontrolling interest | 129,249 | — | ||||||
Net loss attributable to BBGI stockholders | (10,367,698 | ) | (18,045,647 | ) | ||||
Net loss attributable to BBGI stockholders per Class A and Class B common share: | ||||||||
Basic and diluted | $ | (0.35 | ) | $ | (0.61 | ) | ||
Weighted average shares outstanding: | ||||||||
Basic and diluted | 29,268,717 | 29,395,003 |
Three Months Ended March 31, | Six Months Ended June 30, | |||||||||||||||
2021 | 2022 | 2021 | 2022 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net loss | $ | (10,684,641 | ) | $ | (3,738,945 | ) | $ | (10,496,947 | ) | $ | (18,045,647 | ) | ||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||||||
Stock-based compensation | 520,801 | 227,250 | 923,000 | 606,080 | ||||||||||||
Provision for bad debts | (1,472,165 | ) | 77,498 | (1,779,188 | ) | 588,751 | ||||||||||
Depreciation and amortization | 2,951,901 | 2,515,900 | 5,802,824 | 4,967,002 | ||||||||||||
Impairment loss | — | 1,857,226 | ||||||||||||||
Impairment losses | — | 10,476,323 | ||||||||||||||
Gain on disposition | (191,988 | ) | 0 | (191,988 | ) | — | ||||||||||
Amortization of loan fees | 411,363 | 380,211 | 791,574 | 754,085 | ||||||||||||
Loss on extinguishment of long-term debt | 4,996,731 | 0 | 4,996,731 | — | ||||||||||||
Deferred income taxes | (2,602,886 | ) | (5,849,318 | ) | (3,902,280 | ) | (2,747,810 | ) | ||||||||
Equity in earnings of unconsolidated affiliates | 30,105 | 23,344 | 56,024 | (163,226 | ) | |||||||||||
Change in operating assets and liabilities: | ||||||||||||||||
Accounts receivable | 12,180,235 | 11,188,519 | 4,835,493 | 7,160,917 | ||||||||||||
Prepaid expenses | (1,399,765 | ) | 213,359 | (2,320,101 | ) | (2,286,447 | ) | |||||||||
Other assets | 1,286,882 | 570,082 | (1,684,017 | ) | (2,176,152 | ) | ||||||||||
Accounts payable | (5,814,875 | ) | 361,375 | (5,837,685 | ) | 2,641,981 | ||||||||||
Other liabilities | 1,870,041 | (7,069,648 | ) | 13,446,861 | 5,003,953 | |||||||||||
Other operating activities | 272,268 | (21,479 | ) | 208,725 | (28,264 | ) | ||||||||||
Net cash provided by operating activities | 2,354,007 | 735,374 | 4,849,026 | 6,751,546 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Payment for acquisition | — | (2,000,000 | ) | |||||||||||||
Capital expenditures | (1,029,268 | ) | (1,375,775 | ) | (2,553,787 | ) | (6,486,902 | ) | ||||||||
Proceeds from dispositions | 362,500 | 0 | 362,500 | 1,185,312 | ||||||||||||
Net cash used in investing activities | (666,768 | ) | (1,375,775 | ) | (2,191,287 | ) | (7,301,590 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||||||
Issuance of debt | 310,000,000 | 0 | 310,000,000 | — | ||||||||||||
Payments on debt | (268,500,000 | ) | 0 | (268,500,000 | ) | (4,802,500 | ) | |||||||||
Payment of debt issuance costs | (7,604,215 | ) | 0 | (7,604,215 | ) | — | ||||||||||
Reduction of finance lease liabilities | (17,543 | ) | (1,945 | ) | (35,086 | ) | (1,945 | ) | ||||||||
Purchase of treasury stock | (114,308 | ) | (29,599 | ) | (136,779 | ) | (105,707 | ) | ||||||||
Net cash provided by (used in) financing activities | 33,763,934 | (31,544 | ) | 33,723,920 | (4,910,152 | ) | ||||||||||
Net increase (decrease) in cash and cash equivalents | 35,451,173 | (671,945 | ) | 36,381,659 | (5,460,196 | ) | ||||||||||
Cash and cash equivalents at beginning of period | 20,759,432 | 51,378,642 | 20,759,432 | 51,378,642 | ||||||||||||
Cash and cash equivalents at end of period | $ | 56,210,605 | $ | 50,706,697 | $ | 57,141,091 | $ | 45,918,446 | ||||||||
Cash paid for interest | $ | 1,836,787 | $ | 12,937,576 | $ | 1,837,493 | $ | 12,921,869 | ||||||||
Cash paid for income taxes | $ | 1,374,403 | $ | 61,000 | $ | 1,526,303 | $ | 1,546,500 | ||||||||
Supplemental disclosure of non-cash investing and financing activities: | ||||||||||||||||
Acquisition of noncontrolling interest | $ | 4,490,130 | $ | 0 | $ | 4,490,130 | $ | — | ||||||||
Extinguishment of trade sales payable | $ | 934,500 | $ | 0 | $ | 934,500 | $ | — | ||||||||
Class A common stock returned to treasury stock | $ | 670,594 | $ | 0 | $ | 670,594 | $ | — | ||||||||
(1) | Interim Financial Statements |
(2) | Acquisitions and Dispositions |
(3) | FCC Licenses |
Balance as of January 1, 2022 | $ | 508,413,913 | ||
Radio station disposition (see Note 2) | (790,232 | ) | ||
Impairment losses (see below and also Note 2) | (4,619,772 | ) | ||
Balance as of June 30, 2022 | $ | 503,003,909 | ||
Revenue growth rates | (1.9) % - 15.9% | |
Market revenue shares at maturity | 0.6% - 44.0% | |
Operating income margins at maturity | 19.2 32.6%% - | |
Discount rate | 9.5% |
(4) | Goodwill |
Balance as of January 1, 2022 | $ | 28,596,547 | ||
Impairment losses | (5,856,551 | ) | ||
Balance as of June 30, 2022 | $ | 22,739,996 | ||
Revenue growth rates | (1.9)% - 11.1% | |
Operating income margins | 5.4% - 29.8% | |
Discount rate | 9.5% |
(5) | Long-Term Debt |
December 31, 2021 | March 31, 2022 | December 31, 2021 | June 30, 2022 | |||||||||||||
Secured notes | $ | 300,000,000 | $ | 300,000,000 | $ | 300,000,000 | $ | 295,000,000 | ||||||||
Less unamortized debt issuance costs | (6,210,108 | ) | (5,829,897 | ) | (6,210,108 | ) | (5,358,858 | ) | ||||||||
$ | 293,789,892 | $ | 294,170,103 | 293,789,892 | 289,641,142 | |||||||||||
Less current installments | — | (2,000,000 | ) | |||||||||||||
$ | 293,789,892 | $ | 287,641,142 | |||||||||||||
(6) | Stockholders’ Equity |
Three months ended March 3 1 , | ||||||||
2021 | 2022 | |||||||
Beginning balance | $ | 267,101,820 | $ | 263,082,298 | ||||
Stock-based compensation | 520,801 | 227,250 | ||||||
Acquisition of noncontrolling interest | (4,490,130 | ) | — | |||||
Purchase of treasury stock | (784,902 | ) | (29,599 | ) | ||||
Net loss | (10,684,641 | ) | (3,738,945 | ) | ||||
Elimination of noncontrolling interest | 1,076,849 | — | ||||||
Ending balance | $ | 252,739,797 | $ | 259,541,004 | ||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2021 | 2022 | 2021 | 2022 | |||||||||||||
Beginning balance | $ | 252,739,797 | $ | 259,689,019 | $ | 267,101,820 | $ | 263,082,298 | ||||||||
Stock-based compensation | 402,199 | 378,830 | 923,000 | 606,080 | ||||||||||||
Acquisition of noncontrolling interest | — | — | (4,490,130 | ) | — | |||||||||||
Purchase of treasury stock | (22,471 | ) | (76,108 | ) | (807,373 | ) | (105,707 | ) | ||||||||
Net income (loss) | 187,694 | (14,454,717 | ) | (10,496,947 | ) | (18,045,647 | ) | |||||||||
Elimination of noncontrolling interest | — | — | 1,076,849 | — | ||||||||||||
Ending balance | $ | 253,307,219 | $ | 245,537,024 | $ | 253,307,219 | $ | 245,537,024 | ||||||||
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2021 | 2022 | 2021 | 2022 | 2021 | 2022 | |||||||||||||||||||
Audio | $ | 41,729,602 | $ | 47,365,145 | $ | 51,215,234 | $ | 53,417,896 | $ | 92,944,836 | $ | 100,783,041 | ||||||||||||
Digital | 5,763,728 | 7,808,250 | 7,983,343 | 10,719,410 | 13,747,071 | 18,527,660 | ||||||||||||||||||
Other | 718,710 | 546,873 | 376,128 | 673,144 | 1,094,838 | 1,220,017 | ||||||||||||||||||
$ | 48,212,040 | $ | 55,720,268 | $ | 59,574,705 | $ | 64,810,450 | $ | 107,786,745 | $ | 120,530,718 | |||||||||||||
December 31, 2021 | March 31, 2022 | |||||||
Deferred revenue | $ | 3,085,370 | $ | 3,092,825 |
December 31, 2021 | June 30, 2022 | |||||||
Deferred revenue | $ | 3,085,370 | $ | 5,112,294 |
Three months ended March 31, | ||||||||
2021 | 2022 | |||||||
Losses on receivables | $ | 1,095,313 | $ | 287,553 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2021 | 2022 | 2021 | 2022 | |||||||||||||
Losses on receivables | $ | 602,253 | $ | 373,333 | $ | 1,697,566 | $ | 660,886 |
December 31, 2021 | March 31, 2022 | |||||||
Trade sales receivable | $ | 881,885 | $ | 934,421 | ||||
Trade sales payable | 614,467 | 636,476 |
December 31, 2021 | June 30, 2022 | |||||||
Trade sales receivable | $ | 881,885 | $ | 1,087,601 | ||||
Trade sales payable | 614,467 | 723,239 |
Three months ended March 31, | ||||||||
2021 | 2022 | |||||||
Trade sales revenue | $ | 929,597 | $ | 1,372,573 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2021 | 2022 | 2021 | 2022 | |||||||||||||
Trade sales revenue | $ | 1,075,325 | $ | 1,504,105 | $ | 2,004,922 | $ | 2,876,678 |
(8) |
Units | Weighted- Average Grant-Date Fair Value | Units | Weighted- Average Grant-Date Fair Value | |||||||||||||
Unvested as of January 1, 2022 | 940,834 | $ | 2.77 | |||||||||||||
Unvested as of April 1, 2022 | 918,816 | $ | 2.75 | |||||||||||||
Granted | 26,316 | 1.90 | 531,582 | 1.49 | ||||||||||||
Vested | (43,334 | ) | 2.63 | (211,333 | ) | 3.51 | ||||||||||
Forfeited | (5,000 | ) | 2.85 | (30,000 | ) | 2.47 | ||||||||||
Unvested as of March 31, 2022 | 918,816 | $ | 2.75 | |||||||||||||
Unvested as of June 30, 2022 | 1,209,065 | $ | 2.07 | |||||||||||||
(9) | Income Taxes |
(10) | Earnings Per Share |
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2021 | 2022 | 2021 | 2022 | 2021 | 2022 | |||||||||||||||||||
Net loss attributable to BBGI stockholders | $ | (10,555,392 | ) | $ | (3,738,945 | ) | ||||||||||||||||||
Net income (loss) attributable to BBGI stockholders | $ | 187,694 | $ | (14,454,717 | ) | $ | (10,367,698 | ) | $ | (18,045,647 | ) | |||||||||||||
Weighted-average shares outstanding: | ||||||||||||||||||||||||
Basic | 29,302,799 | 29,370,789 | 29,235,009 | 29,418,951 | 29,268,717 | 29,395,003 | ||||||||||||||||||
Effect of dilutive restricted stock units and restricted stock | 0 | 0 | 89,605 | — | — | — | ||||||||||||||||||
Diluted | 29,302,799 | 29,370,789 | 29,324,614 | 29,418,951 | 29,268,717 | 29,395,003 | ||||||||||||||||||
Net loss attributable to BBGI stockholders per Class A and Class B common share – basic and diluted | $ | (0.36 | ) | $ | (0.13 | ) | ||||||||||||||||||
Net income (loss) attributable to BBGI stockholders per Class A and Class B common share – basic and diluted | $ | 0.01 | $ | (0.49 | ) | $ | (0.35 | ) | $ | (0.61 | ) | |||||||||||||
(11) |
(12) | Segment Information |
Audio | Digital | Other | Corporate | Total | ||||||||||||||||
Net revenue | $ | 47,365,145 | $ | 7,808,250 | $ | 546,873 | $ | — | $ | 55,720,268 | ||||||||||
Operating expenses | 40,683,812 | 8,401,763 | 744,861 | — | 49,830,436 | |||||||||||||||
Corporate expenses | — | — | — | 4,233,460 | 4,233,460 | |||||||||||||||
Depreciation and amortization | 1,621,827 | 4,464 | 695,348 | 194,261 | 2,515,900 | |||||||||||||||
Impairment loss | 1,857,226 | — | — | — | 1,857,226 | |||||||||||||||
Operating income (loss) | $ | 3,202,280 | $ | (597,977 | ) | $ | (893,336 | ) | $ | (4,427,721 | ) | $ | (2,716,754 | ) | ||||||
Audio | Digital | Other | Corporate | Total | ||||||||||||||||
Capital expenditures | $ | 1,181,994 | $ | 1,844 | $ | 60,682 | $ | 142,230 | $ | 1,386,750 |
Audio | Digital | Other | Corporate | Total | ||||||||||||||||
Net revenue | $ | 53,417,896 | $ | 10,719,410 | $ | 673,144 | $ | — | $ | 64,810,450 | ||||||||||
Operating expenses | 43,187,604 | 9,171,535 | 1,267,453 | — | 53,626,592 | |||||||||||||||
Corporate expenses | — | — | — | 4,567,470 | 4,567,470 | |||||||||||||||
Depreciation and amortization | 1,564,338 | 4,613 | 700,953 | 181,198 | 2,451,102 | |||||||||||||||
Impairment losses | 8,619,097 | — | — | — | 8,619,097 | |||||||||||||||
Operating income (loss) | $ | 46,857 | $ | 1,543,262 | $ | (1,295,262 | ) | $ | (4,748,668 | ) | $ | (4,453,811 | ) | |||||||
Audio | Digital | Other | Corporate | Total | ||||||||||||||||
Capital expenditures | $ | 5,039,229 | $ | 8,982 | $ | (1,598 | ) | $ | 64,514 | $ | 5,111,127 |
Audio | Digital | Other | Corporate | Total | ||||||||||||||||
Net revenue | $ | 41,729,602 | $ | 5,763,728 | $ | 718,710 | $ | — | $ | 48,212,040 | ||||||||||
Operating expenses | 34,735,469 | 7,257,915 | 974,487 | — | 42,967,871 | |||||||||||||||
Corporate expenses | — | — | — | 3,905,289 | 3,905,289 | |||||||||||||||
Depreciation and amortization | 2,004,377 | 0 | 811,903 | 135,621 | 2,951,901 | |||||||||||||||
Gain on disposition | (191,988 | ) | — | — | — | (191,988 | ) | |||||||||||||
Other operating expense s | 500,000 | — | — | 600,000 | 1,100,000 | |||||||||||||||
Operating income (loss) | $ | 4,681,744 | $ | (1,494,187 | ) | $ | (1,067,680 | ) | $ | (4,640,910 | ) | $ | (2,521,033 | ) | ||||||
Audio | Digital | Other | Corporate | Total | ||||||||||||||||
Capital expenditures | $ | 712,945 | $ | — | $ | 2,852 | $ | 313,471 | $ | 1,029,268 |
Audio | Digital | Other | Corporate | Total | ||||||||||||||||
Net revenue | $ | 51,215,234 | $ | 7,983,343 | $ | 376,128 | $ | — | $ | 59,574,705 | ||||||||||
Operating expenses | 39,715,005 | 7,910,418 | 868,997 | — | 48,494,420 | |||||||||||||||
Corporate expenses | — | — | — | 3,957,854 | 3,957,854 | |||||||||||||||
Depreciation and amortization | 1,911,236 | 4,142 | 796,019 | 139,526 | 2,850,923 | |||||||||||||||
Other operating income, net | — | — | — | (1,500,000 | ) | (1,500,000 | ) | |||||||||||||
Operating income (loss) | $ | 9,588,993 | $ | 68,783 | $ | (1,288,888 | ) | $ | (2,597,380 | ) | $ | 5,771,508 | ||||||||
Audio | Digital | Other | Corporate | Total | ||||||||||||||||
Capital expenditures | $ | 1,276,776 | $ | 87,432 | $ | — | $ | 160,311 | $ | 1,524,519 |
Audio | Digital | Other | Corporate | Total | ||||||||||||||||
Net revenue | $ | 100,783,041 | $ | 18,527,660 | $ | 1,220,017 | $ | — | $ | 120,530,718 | ||||||||||
Operating expenses | 84,050,529 | 17,573,298 | 2,012,314 | — | 103,636,141 | |||||||||||||||
Corporate expenses | — | — | — | 8,800,930 | 8,800,930 | |||||||||||||||
Depreciation and amortization | 3,186,165 | 9,077 | 1,396,301 | 375,459 | 4,967,002 | |||||||||||||||
Impairment losses | 10,476,323 | — | — | — | 10,476,323 | |||||||||||||||
Operating income (loss) | $ | 3,070,024 | $ | 945,285 | $ | (2,188,598 | ) | $ | (9,176,389 | ) | $ | (7,349,678 | ) | |||||||
Audio | Digital | Other | Corporate | Total | ||||||||||||||||
Capital expenditures | $ | 6,221,223 | $ | 10,826 | $ | 59,084 | $ | 206,744 | $ | 6,497,877 |
Audio | Digital | Other | Corporate | Total | ||||||||||||||||
Net revenue | $ | 92,944,836 | $ | 13,747,071 | $ | 1,094,838 | $ | — | $ | 107,786,745 | ||||||||||
Operating expenses | 74,450,474 | 15,168,333 | 1,843,484 | — | 91,462,291 | |||||||||||||||
Corporate expenses | — | — | — | 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 | ) | — | — | — | (191,988 | ) | |||||||||||||
Other operating (income) expense, net | 500,000 | — | — | (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 |
Audio | Digital | Other | Corporate | Total | ||||||||||||||||
Property and equipment, net | $ | 48,624,289 | $ | 76,296 | $ | 75,224 | $ | 3,882,252 | $ | 52,658,061 | ||||||||||
FCC licenses | 503,003,909 | — | — | — | 503,003,909 | |||||||||||||||
Goodwill | 19,520,896 | — | 3,219,100 | — | 22,739,996 | |||||||||||||||
Other intangibles, net | 1,907,547 | 2,000,000 | 19,285,987 | 179,663 | 23,373,197 |
Audio | Digital | Other | Corporate | Total | ||||||||||||||||
Property and equipment, net | $ | 45,272,758 | $ | 71,927 | $ | 81,543 | $ | 3,998,936 | $ | 49,425,164 | ||||||||||
FCC licenses | 506,556,687 | — | — | — | 506,556,687 | |||||||||||||||
Goodwill | 25,377,447 | — | 3,219,100 | — | 28,596,547 | |||||||||||||||
Other intangibles, net | 1,940,820 | — | 19,914,719 | 179,663 | 22,035,202 |
Audio | Digital | Other | Corporate | Total | ||||||||||||||||
Property and equipment, net | $ | 45,696,008 | $ | 74,547 | $ | 21,644 | $ | 4,050,967 | $ | 49,843,166 | ||||||||||
FCC licenses | 508,413,913 | — | — | — | 508,413,913 | |||||||||||||||
Goodwill | 25,377,447 | — | 3,219,100 | — | 28,596,547 | |||||||||||||||
Other intangibles, net | 1,974,093 | — | 20,543,451 | 179,663 | 22,697,207 |
Audio | Digital | Other | Corporate | Total | ||||||||||||||||
Property and equipment, net | $ | 45,696,008 | $ | 74,547 | $ | 21,644 | $ | 4,050,967 | $ | 49,843,166 | ||||||||||
FCC licenses | 508,413,913 | — | — | — | 508,413,913 | |||||||||||||||
Goodwill | 25,377,447 | — | 3,219,100 | — | 28,596,547 | |||||||||||||||
Other intangibles, net | 1,974,093 | — | 20,543,451 | 179,663 | 22,697,207 |
Revenue growth rates | (1.9)% - 15.9% | |
Market revenue shares at maturity | 0.6% - 44.0% | |
Operating income margins at maturity | 19.2% - 32.6% | |
Discount rate | 9.5% |
Market cluster | FCC broadcasting licenses | Excess | ||||||
Atlanta, GA | $ | 832,300 | 13.1 | % | ||||
Augusta, GA | 6,113,075 | 57.1 | ||||||
Boston, MA | 137,856,160 | 0.2 | ||||||
Charlotte, NC | 56,418,151 | 9.4 | ||||||
Detroit, MI | 29,978,201 | 8.2 | ||||||
Fayetteville, NC | 8,974,679 | 9.3 | ||||||
Fort Myers-Naples, FL | 9,131,300 | — | ||||||
Las Vegas, NV | 33,655,100 | — | ||||||
Middlesex, Monmouth, Morristown, NJ | 21,896,900 | 1.6 | ||||||
Philadelphia, PA | 119,674,192 | 11.2 | ||||||
Tampa-Saint Petersburg, FL | 61,787,351 | 16.7 | ||||||
Wilmington, DE | 16,686,500 | — |
Revenue growth rates | (1.9)% - 11.1% | |
Operating income margins | 5.4% - 29.8% | |
Discount rate | 9.5% |
Three Months ended March 31, | Change | |||||||||||||||
2021 | 2022 | $ | % | |||||||||||||
Net revenue | $ | 48,212,040 | $ | 55,720,268 | $ | 7,508,228 | 15.6 | % | ||||||||
Operating expenses | 42,967,871 | 49,830,436 | 6,862,565 | 16.0 | ||||||||||||
Corporate expenses | 3,905,289 | 4,233,460 | 328,171 | 8.4 | ||||||||||||
Impairment loss | — | 1,857,226 | 1,857,226 | — | ||||||||||||
Other operating expenses | 1,100,000 | — | (1,100,000 | ) | (100.0 | ) | ||||||||||
Interest expense | 5,778,071 | 6,849,037 | 1,070,966 | 18.5 | ||||||||||||
Loss on extinguishment of long-term debt | 4,996,731 | — | (4,996,731 | ) | (100.0 | ) | ||||||||||
Income tax benefit | 2,602,886 | 5,849,318 | 3,246,432 | 124.7 | ||||||||||||
Net loss | 10,684,641 | 3,738,945 | (6,945,696 | ) | (65.0 | ) |
Three Months ended June 30, | Change | |||||||||||||||
2021 | 2022 | $ | % | |||||||||||||
Net revenue | $ | 59,574,705 | $ | 64,810,450 | $ | 5,235,745 | 8.8 | % | ||||||||
Operating expenses | 48,494,420 | 53,626,592 | 5,132,172 | 10.6 | ||||||||||||
Corporate expenses | 3,957,854 | 4,567,470 | 609,616 | 15.4 | ||||||||||||
Impairment losses | — | 8,619,097 | 8,619,097 | — | ||||||||||||
Other operating income, net | 1,500,000 | — | (1,500,000 | ) | (100.0 | ) | ||||||||||
Income tax expense (benefit) | (1,299,394 | ) | 3,554,469 | 4,853,863 | 373.5 | |||||||||||
Net income (loss) | 187,694 | (14,454,717 | ) | (14,642,411 | ) | (7801.2 | ) |
Three Months ended March 31, | Change | Three Months ended June 30, | Change | |||||||||||||||||||||||||||||
2021 | 2022 | $ | % | 2021 | 2022 | $ | % | |||||||||||||||||||||||||
Net revenue | ||||||||||||||||||||||||||||||||
Audio | $ | 41,729,602 | $ | 47,365,145 | $ | 5,635,543 | 13.5 | % | $ | 51,215,234 | $ | 53,417,896 | $ | 2,202,662 | 4.3 | % | ||||||||||||||||
Digital | 5,763,728 | 7,808,250 | 2,044,522 | 35.5 | 7,983,343 | 10,719,410 | 2,736,067 | 34.3 | ||||||||||||||||||||||||
Other | 718,710 | 546,873 | (171,837 | ) | (23.9 | ) | 376,128 | 673,144 | 297,016 | 79.0 | ||||||||||||||||||||||
$ | 48,212,040 | $ | 55,720,268 | $ | 7,508,228 | 15.6 | $ | 59,574,705 | $ | 64,810,450 | $ | 5,235,745 | 8.8 | |||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||||||
Audio | $ | 34,735,469 | $ | 40,683,812 | $ | 5,948,343 | 17.1 | % | $ | 39,715,005 | $ | 43,187,604 | $ | 3,472,599 | 8.7 | % | ||||||||||||||||
Digital | 7,257,915 | 8,401,763 | 1,143,848 | 15.8 | 7,910,418 | 9,171,535 | 1,261,117 | 15.9 | ||||||||||||||||||||||||
Other | 974,487 | 744,861 | (229,626 | ) | (23.6 | ) | 868,997 | 1,267,453 | 398,456 | 45.9 | ||||||||||||||||||||||
$ | 42,967,871 | $ | 49,830,436 | $ | 6,862,565 | 16.0 | $ | 48,494,420 | $ | 53,626,592 | $ | 5,132,172 | 10.6 | |||||||||||||||||||
Six Months ended June 30, | Change | |||||||||||||||
2021 | 2022 | $ | % | |||||||||||||
Net revenue | $ | 107,786,745 | $ | 120,530,718 | $ | 12,743,973 | 11.8 | % | ||||||||
Operating expenses | 91,462,291 | 103,636,141 | 12,173,850 | 13.3 | ||||||||||||
Corporate expenses | 7,863,143 | 8,800,930 | 937,787 | 11.9 | ||||||||||||
Impairment losses | — | 10,476,323 | 10,476,323 | — | ||||||||||||
Other operating income, net | 400,000 | — | (400,000 | ) | (100.0 | ) | ||||||||||
Interest expense | 12,643,440 | 13,672,254 | 1,028,814 | 8.1 | ||||||||||||
Loss on extinguishment of long-term debt | 4,996,731 | — | (4,996,731 | ) | (100.0 | ) | ||||||||||
Income tax benefit | 3,902,280 | 2,621,977 | (1,280,303 | ) | (32.8 | ) | ||||||||||
Net loss | 10,496,947 | 18,045,647 | 7,548,700 | 71.9 |
Six Months ended June 30, | Change | |||||||||||||||
2021 | 2022 | $ | % | |||||||||||||
Net revenue | ||||||||||||||||
Audio | $ | 92,944,836 | $ | 100,783,041 | $ | 7,838,205 | 8.4 | % | ||||||||
Digital | 13,747,071 | 18,527,660 | 4,780,589 | 34.8 | ||||||||||||
Other | 1,094,838 | 1,220,017 | 125,179 | 11.4 | ||||||||||||
$ | 107,786,745 | $ | 120,530,718 | $ | 12,743,973 | 11.8 | ||||||||||
Operating expenses | ||||||||||||||||
Audio | $ | 74,450,474 | $ | 84,050,529 | $ | 9,600,055 | 12.9 | % | ||||||||
Digital | 15,168,333 | 17,573,298 | 2,404,965 | 15.9 | ||||||||||||
Other | 1,843,484 | 2,012,314 | 168,830 | 9.2 | ||||||||||||
$ | 91,462,291 | $ | 103,636,141 | $ | 12,173,850 | 13.3 | ||||||||||
Three Months ended March 31, | Six Months ended June 30, | |||||||||||||||
2021 | 2022 | 2021 | 2022 | |||||||||||||
Net cash provided by operating activities | $ | 2,354,007 | $ | 735,374 | $ | 4,849,026 | $ | 6,751,546 | ||||||||
Net cash used in investing activities | (666,768 | ) | (1,375,775 | ) | (2,191,287 | ) | (7,301,590 | ) | ||||||||
Net cash provided by (used in) financing activities | 33,763,934 | (31,544 | ) | 33,723,920 | (4,910,152 | ) | ||||||||||
Net increase (decrease) in cash and cash equivalents | $ | 35,451,173 | $ | (671,945 | ) | $ | 36,381,659 | $ | (5,460,196 | ) | ||||||
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. |
ITEM 4. CONTROLS AND PROCEDURES. |
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 | ||||||||||||
January 1 – 31, 2022 | 4,400 | $ | 1.85 | — | — | |||||||||||
February 1 – 28, 2022 | — | — | — | — | ||||||||||||
March 1 – 31, 2022 | 11,807 | 1.82 | — | — | ||||||||||||
Total | 16,207 | |||||||||||||||
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, 2022 | 2,965 | $ | 1.70 | — | — | |||||||||||
May 1 – 31, 2022 | 22,430 | 1.50 | — | — | ||||||||||||
June 1 – 30, 2022 | 29,221 | 1.28 | — | — | ||||||||||||
Total | 54,616 | |||||||||||||||
Exhibit Number | Description | |
31.1 | Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) (17 CFR 240.15d-14(a)). | |
31.2 | Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) (17 CFR 240.15d-14(a)). | |
32.1 | Certification of Chief Executive Officer pursuant to Rule 13a-14(b)/15d-14(b) (17 CFR 240.15d-14(b)) and 18 U.S.C. Section 1350. | |
32.2 | Certification of Chief Financial Officer pursuant to Rule 13a-14(b)/15d-14(b) (17 CFR 240.15d-14(b)) and 18 U.S.C. Section 1350. | |
101.INS | XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |
101.SCH | XBRL Taxonomy Extension Schema Document. | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document. | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. | |
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
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 |