BBGI - Earnings call transcript Q1 2018 | Beasley Broadcast Group, Inc.

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Operator

Good morning and welcome to Beasley Broadcast Group's First Quarter 2018 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 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 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.You can also find a copy of today's press release on the Investors or Press Room sections of the site. would Beasley turn Beasley. Broadcast I to conference time, host, your Group's this like the to over At CEO, Caroline go ahead. Please

Caroline Beasley

joining our CFO Thank Thank with me first good and is operating us morning. for quarter Tedesco, you, XXXX for Marie morning, results. this our Don, you everyone.

'XX am completed happy, the early in that QX, and we you lapped our in a reporting I am sure are easier First and and lot transactions divestiture acquisitions late and I are comparison presentations 'XX. as

As call on discussed actual and are term given growing flow in end believe and free at where interested is devoting ability reporting our that energy. more we of our as cash our over are investors to on the previous are free we our like the day long cash focus flow, results us the we grow

addition December and radio Bruins. the first popular we secured With XXXX the includes Patriots' exchanged quarter such sports for as the for teams the this the programming Magic one the where New However, formatted Boston sports Hub. England marquee broadcast in to further is markets from a of market of The this the music clusters great Boston Sports with that the the country. asset content diversified permanent features swaps, we rates transaction and some our unique sticky revenue franchises most XXXX

with Super the As you which and quarter growth. to it Patriots quarter's busy expect, revenue the would a was contributed Bowl first

the Bowl In gotten [WPEN] at though our rights. fact benefit Philly revenue hold station Super even a saw sports we we also broadcast

several as storms Northeast some were schools ad closed businesses in to and markets we the side due slow placement foot quarter home. experienced in stay the asked were people and first our major to On

generated clusters was several offset of Boston by the increase which of Coastal included increase we across was was full Carolina The XXXX deploying primarily result is a swap National we expense X.X% revenue. at success to by that revenues station our was offset overall the of a quarter, our divestiture the continue the first remain in and quarter. This some across first cases driven by our which in disciplines the Looking somewhat for offset mainly ongoing our which markets Beasley was challenged are market. management partially driving local expense revenue. by also

SOI divestitures support we strategy Greater well other swaps goals disciplines. believe our strengthened implementing Overall divestitures Moreover our flat local quarter and had station platform. continue results. when contribution announced our programming the and the year's strong from immigration on expense activity market and been would to leadership, while ratings execute have Media excluding our transaction SOI on acquisition we from Carolina Coastal operating and last the to strategic and First to management related market focused our

difficulties, our great Now for and expect usual the Cumulus upside differentiated one with that before the the and review they from synergy on by year ratings those Radio perspective and a and other we what addition last quarter, improve From ownership. solid I as we mean ongoing turn under and and addressable. continue and is great stations leverage to our I’d its business address their realization hand with to modest Intercom bankruptcies iHeart successes changed of the stations, our programming call as deeper in CBS integration great be to of local the brands, some over to covers Remember Marie to operators. of like for hands

impact it that on have On suffering large. an hasn't they've had, at the we believe industry other company have the hand with the to way leading that that the

its advertising. where leaders market more inventory reach companies and likely and for elevates to their product, effectiveness So a we our it see we as get advocate healthier rationalized these industry for creates which of are to an the we're for hope waiting value better

to So going it to with that I’m over turn Marie.

Marie Tedesco

Thanks Caroline.

I Carolina station resulting some $X.X review or SOIs a cluster revenue in the expenses format $XX.X income million to Again $X.X period. includes the station sheet swap expenses X.X% million higher asset Net and the Let’s year reflects swapped results, decline increased period with sold balance a the the which first station net to increase revenue WMJX-FM operating WBZ-FM. of for ago review station to in $X.X quarter operating rose or was million items. cares and and million expenses. as will which the sports quarter X.X% for X.X% then operating and $X.X Boston Boston which the the ago for we operating The in in compared year million, Coastal in generally

Fort tough decline. as consumer up during single-digits low well our largest to Auto increases Bowl. These third, a of single tough Tampa, rebounded the largest quarter. followed partially of revenue fourth expenses basis, down expenses This cluster. Myers high was clusters, was retail digit. by quarter addition, Augusta remained also additional category incurred and typically in competing category quarter third from entertainment we Carolina but from Super digit somewhat In were the which by mid our to and Patriots the Detroit, XXXX in divested low quarter rebounded a was single related services expense as reductions and our as the the category at first Costal absence from digit mid single fourth which then Charlotte, On offset quarter up is a to in

expanded increased Vegas, category during market. Las the moments $X.X in Corporate Tampa, our expenses positive an primarily by and to in corporate We quarter primarily scale million are in reflecting G&A Seattle XXX,XXX and our Boston, automotive increase the seeing staff.

compensation basis for reflecting expense rate XXX,XXX reduced XXXX the non-cash XXX,XXX to first quarter. taxes million stock In XXX cash by refinancing our $X.X we year-over-year voluntarily paid of $X.X debt We interest cash million the WBC to the to with and decreased recently reduce reflects proceeds as Carolina senior of addition, Total reduction approximately the XXX,XXX November hand It borrowings. quarter quarter year-over-year which quarter based and of also the points. in in operations Coastal completed refinancing million reflecting for divestiture the applied credit facility cash $XX.X transaction. our and increased from interest our the approximately we our a borrowings from on plus ended

to million Our million total XXXX outstanding XXXX. $XXX XX, $XXX debt as December was of March at XX, compared

December cash flow XXXX. defined March ratio This Our in XXXX. the credit XX, $XX.X agreement as million, of LTM X.XX to leverage in operating of consolidated X.XX compares times a resulting was as of XX, as

company leverage times at benefit in calculating up company on times compares of million December net X.XX $XX The I XX, on the now March in that $X.X of X.XX XXXX with And the will quarter was agreement balance of to allows a the XXXX. and XXXX. first reflecting of back leverage our first total the turn with same CapEx million to $X though to sheet spends credit the compared cash to to XX, quarter net million that, for basis X.XX at compared Caroline. leverage it receive our covenant cash, Our hand in maximum

Caroline Beasley

Thank you, Marie.

cash month free quarter a highlight is and the our XX in So on basis. today's growth the flow trailing report of both first

month tax our management benefits of expanded strategic growth trailing structure of our excess highlights it borrowing benefits basis the manage first to disciplined and and XX.X%. the rose capital XX.X%, scale transactions and to the quarter, reform. Before with increased our the and flow while recent our cash overall free This on initiative XX reduce combined a cost approach

on Our accretive ongoing diversification local growth and and time, in while we're capital station serve swaps. many in pursuing to we and growing returning to our technology flow capital content, cash managing structure, selective, to our capitalize market. free leverage to profile, effectively acquisitions innovation same and At and commitment invested listeners the have us positioned With shareholders. and businesses our our opportunities platforms broadcast the has

Our month efficacy term believe approach quarterly we growth trailing proven of the formula value. cash which a and building free for shareholder is this long XX flow highlight

listeners. the platform We to value our of innovate to for continue enhance our

the now X XXX downloads total podcast, we had are example, we the an in As days. of million last XX featuring approximately

initiative phase we and growing there while the competition track which medium continues apps platforms. is better reach on radio of addition, stable. year more experience growing Radio with already to is XX% up in remains in result, population we're Beasley's broadcast enabled industry launch confident middle Also lifeline tuning for of the is a towards create listeners, mobile digital our U.S. remain podcast. number consumption for the In will our to and two audio share in a to as one the in our our weekly XX Overall, and of be listeners.

industry to the healthier, fact, of As the With say remember I'd I two NAB an than is several digital at month more was years. level communities, their get of more industry is looking the our for higher show will work and been initiative far than that capitalize can biggest aligned on industry's in on excitement best past. last innovated serve the operators it's at about at in a of we're matter broadcasters hard opportunities. even strengthening allow NAB to that that businesses new

June QX More May few currently pacing's, are we was pacing today, to up, deeper specifically revenue buys markets. down. starting QX is and of currently in on is as flat a flat XXXX some into pacing Now and see political April looking is

opportunistic about identifying, structuring we and completing, accretive and investment capital ready while build our additional experience remain Finally acquisitions platform. structures with and we to will to appropriate the intend strategic be continue

call I'm to going had to that we behalf team, on best thank of we'd have So our a the it come and participating like questions have in. to today you Marie for as turn in Beasley's few over

Marie Tedesco

I'll a got going some Thanks Caroline to of of questions have and a few I'm correct take few is and that address here. Caroline, care of them. them we've

$X of our full First intent we spend the did the our to spend around in about I question XXXX. quarter million our $X CapEx and CapEx one and for CapEx that outlook. received million I is to year for somewhere got, review at

remains received second affected leverage four about our we expenses games. in from we Patriot in season Boston were margin going also playoffs, times. leverage as to target, XXX,XXX And the looking again. to between asked Bowl football we and into and have We We approximately be XXX,XXX entering a start and the had quarter, in below Super increase Super regarding also that Boston our Bowl this margin our question related the both of we until before, mentioned expenses the target at to expect course our those and

that M&A? we is outlook what - is got question on our Another

Caroline Beasley

de-lever think out our for accretive for shareholders comments that would to meet able like we an to be are We opportunity are we any Marie or acquisition, to mentioned leverage just our and the to rate I on complementary able see then will if this strategic to and our with we we always in it’s quickly platform. be guidelines X a that at So to that lower. look acquisitions right stretch would the times acquisitions to

Marie Tedesco

And revenue to to political question expectation with you. touch is And year we also which be $X somewhere line million in political prior XXXX. Thank and to our and non-election million received revenue we $X in on consistent expect a our around years.

to got, a Another Caroline? last the comments ad Boston. was bit touch question quarter's on the of placement that in little we

Caroline Beasley

local on trends We on question not think another still on so was at I disruption we're quarter national that it question as marketplace. is field national see in do local, that's the Boston was fourth day and was is, that was local holding then just where quarter. it's in because back, that we holding the all in year-over-year Yes, quarter much follow to today? the its the is stand coming however and versus pretty on ad is staying National local as And today a pretty and national last its much going own, And see placement of is that down versus that own as seeing it sustained first year-over-year. much

Marie Tedesco

are we And to hedging are if our and touch questions that are. any into senior something see are we looking question on we at those of I current And last to have looking is was options just what received. our the the that debts

Caroline Beasley

please Okay, for All again feel call questions any or Marie well participating myself. And today. thank bye. the free on call if right, to you you have

Operator

for This does participation. you Thank conference. today's conclude your

disconnect. now may You

Beasley Broadcast (BBGI) 7 May 182018 Q1 Earnings call transcript