BBGI - Earnings call transcript Q3 2017 | Beasley Broadcast Group, Inc.

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Operator

Good morning and welcome to Beasley Broadcast Group's Third Quarter 2017 Conference 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 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'd also like to remind listeners that following its completion, a replay of today's call can be accessed for five 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 Group's to your like Beasley. time, conference At to over turn host, Executive Chief the Broadcast Officer, Caroline Beasley I'd ahead. Please go

Caroline Beasley

Kim, on Thank you and me today. the review call us for Tedesco, Marie morning. quarter third with XXXX results. good our you joining to Thank our CFO is this

that jump to just Overall, I'm in. as had last at of look quarter quarter, national political report was pro flat growth. right which we pleased in and third $XXX,XXX. pro to of to due year's revenue, spot third local So primarily about softness we revenue SOI and solid and another revenue quarter non-recurrence amounted let's forma is in this forma the

from Excluding revenue XX.X% for Pro the in forma in declined X%. SOI. expenses increased a X.X%, resulting increase the quarter impact political,

and In include a quarter addition, of our July, million reported year with were last $XX.X forma over XX.X% year Media pro $X margins to debt by in rose our that Philly several increases. since the over and million clusters On pro of Boston. Greater November our during and quarter. date it Detroit, We’ve I'm we they year that and of X. projections. revenue by we $XX reduced reduced call total pleased million the closing year flat indicated And right year would be our those forma line third we in to And report revenue

a decline second increase respectably, X.X% our cluster increases, Detroit in first XX% quarter. in and an delivered a revenue our of and In of Philly to X% third from cluster rebounded decline digit the revenue of and quarters fact, double

numbers. over it turn to detail the on to some she's going going Marie to I’m now provide you and more So

Marie Tedesco

XX.X% station And in expenses resulting increased operating Reflecting then in sheet review of or operating a $XX.X XXX.X% Thanks, On our million the operations a forma quarter some of XXX% expenses is flat operating quarter Caroline. rise direct synergies. the increase the and expenses at and year, were third a income approximately $XX items. to the result review net the the Media Pro increase. or of The or over revenue revenue quarter X.X% forma station, rose Greater ongoing operating for with operating a our station X.X% revenue million realization the Media flat addition results, million. $X.X forma we’ll to actual We’ll from station. XXX.X% expenses reduced start million, plus Greater of remained $XX.X reflecting million. balance year in third $XX.X million. of basis, SOI $X.X pro increased a Pro the

which and revenue compared to markets. in outperformance XX.X% outperformed overall of Detroit, some markets slight spot increase agreement. revenue new growth X.X%. revenue $X.X six We driven Media terms we the in SOI from XXX to margins up in entered clusters employment by with XX.X% expenses we Kaplan, quarter year when the during period. market, which or extracting in corporate X.XX% QX a scale staff increase significantly network mainly and XX.X%, This traditional our X.XX%. the expanded Miller the our the our million, reflecting a According scale, operating declined are Greater overall we rose with NTR rose by markets to increased to the of XX.X% into basis to synergies as expected, the combined and an in G&A our compared market, As from with transaction, was pro outperformed forma point and million in was Corporate $X expanded revenues, ago

million for $X.X million. In increased stock based addition, quarter $X.X compensation the to

after $X change nine rate in XXXX. capital months tax we Year. value the September $X.X ended cash year adjustments over paid $X.X for XX% the XX, income the And the the the related to million in first year fair year of was as effective of as approximately expense taxes approximately working Our the in well borrowing to increase nine costs. million Total quarter higher Media reflecting million, increased interest over months this. borrowings year third transaction, Greater in

XX, acquisition, With $XXX the XXXX financing million of of September compared total at as XX, to outstanding million was the June our Greater XXXX. Media $XXX debt

in XXXX. made of XX, During resulting voluntary as of debt cash our consolidated the as XX, was to in compared LTM leverage June $XX.X XXXX, credit repayments as agreement, against we totaling times operating ratio X.XX $X the our third flow September X.XX a quarter, million, million. defined of times

allows time. CapEx September year. agreement ended credit CapEx our the million We of to was Caroline. calculating the million compared number this net spent to year turn compares up of And $X to hand with the net to spent on million. hand with company cash $XX cash date ago CapEx, date, a reflecting for ’XX million I'll of receive XXXX times anticipate leverage the be total year our to in and benefit to year third And quarter, million. And company Year X.XX balance cash, $X.XX $X.XX in XX, Our during that, of ago. on in million to maximum $X.XX it of to quarter the at third sheet third a X.XX leverage times, $XXX,XXX a $XX.X spend that back with We approximately at covenant company in quarter leverage.

Caroline Beasley

Thank you, Marie.

transaction. the and revenue more market expected great by approximately it The our third than and stations leading and XX%, the to quarter brands portfolio through doubled we confirmed our Media is again audience our both results. with reach, achieve to It increased Greater accretive benefits operating

political Looking generated pro at $X in forma last QX, revenue million we about year.

looking at to single and quarter. are down be the high fourth digits we projections in So pacings for

do Greater continue we Our will think and period And refinancing to expires goals focus Xst prudently diversifying ’XX, non-call our our capital that our future. Media and about invest as the exceeding targets further we existing excited protecting the for capital exploring will revenue streams, the our our continue our returning synergy of We and the on continue a our November and acquired strategic and priorities we shareholders. XXXX are repricing to will including throughout stations. debt credit and brands, and to cost in for special of We're achieving and or growing our company’s be them. looking into on of facilities. note, repricing integration our options, leverage

focus and best do. platform, rollout we incorporating is third our with quarter, In listeners on content we becoming stations the all philosophy content We’re agnostic that Alexa completed this our local great our platform, the distribution on our the to Amazon local access the to giving all echo regard, delivering on of the in and company Beasley core more the entertaining to emphasis content, more which during devices. of

We app are of year. next our is new to also and and completed exciting to features phase expected add apps early update, one platform, our all and to converting by rolled plans be mobile stations of out underway one our to this

on and regarding this about podcast refocusing opportunities long are we strategy excited addition, effort. very term are In our the

create monetize radio are business. very to closing, in our enhanced goal initiatives local company Our strong the to is to experience, brands. core these proud be with our of we better and while a opportunities with each listener programming providing In

In we hurricanes. of the the heard in us during story communities to critical community addition crisis. information a the broadcast on of entertainment are story devastating medium, Each latest great lifeline to has our being after provide how times helped

this our all communities, possible local weather our serve advertisers employees critical, each give listeners to our their not honored would Beasley best with be news, reliable We’re information. and day. safety without every And dedicated our and who and

to it think this back we questions to for I I'm a to morning. your review. So received Marie I lob thank going few you time because

Marie Tedesco

We did.

which start a We growth have of is I’ll strong and the few gotten asking with Detroit’s the rate. off driver question, about questions first

Caroline Beasley

So year. to in and be fortunately market able we we’re participate that that Detroit refer format being the growing the outpacing and last in we Detroit. is excited the is quarter, due to growth we are made part market that market to Detroit third changes the in strong in the to But

Marie Tedesco

and We have proximately a synergies, $X.X that, realized take synergy million asked against Great. posed quantify of expected will that also could expectations, of and were to we if date our million $X.X that we I synergies.

identified have synergies $X left original quarter. and be We will achieved of in fourth that the approximately million

further Another was include question we were about priorities diversifying the that revenue asked streams.

Caroline Beasley

our in to doing in earlier And going order both So addition, internally other doors opportunities in is to and what that forward. we're referred as reviewing our quarter mean? at outperformed the So which digital and does what content what in third release revenue streams. looking we that I - are drivers is to in NTR, we're open here revenue

Marie Tedesco

Thank you.

our pacing fourth for is And Beasley. in Retail question were regulatory down we single how at in target is color in auto might Washington and impact provide is stay in below final Another asked We quarter four digits. please our trending zone the to leverage, comfort also some have to times. digits. what on is about being the pacing revenue down on retail. is. are low our is double that thoughts discussed and And they the comfort auto zone quarter question And changes any fourth that

Caroline Beasley

Right.

any there, TV that something own is and dereg and we radio. other But definitely we have in on the communities. a that audio our of mention But be even this and stations week proposed is release But in to actually between we platforms different sub guess be or than not addressed. companies personal would announcement would welcome. radio, ownership ownership big I of radio for welcoming ownership My So caps last further out the deregulation realize even be more do was order I to for with markets and the radio, any many algorithms the release have across in release competitive coding would people radio was newspaper. opinion for real specifically that’s that

Marie Tedesco

That concludes questions. Great. the

Caroline Beasley

feel time myself Thank any further free with today, questions. Marie please for your you call or to and

Operator

participation. conclude does you this for today. Thank And our your conference

You may now disconnect.

Beasley Broadcast (BBGI) 30 Oct 172017 Q3 Earnings call transcript