BBGI - Earnings call transcript Q2 2018 | Beasley Broadcast Group, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning and welcome to Beasley Broadcast Group's Second 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 and 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 on Regulation S-K. A reconciliation of these non-GAAP measures with their most directly comparable financial measures calculated and presented in accordance with GAAP can be found in this morning's news announcement and on the Company's website. I would also remind listeners that following its completion, a replay of today's call can be accessed for 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 Broadcast like to would time, the At over conference to your CEO, Group's turn Beasley Caroline Beasley. host, I ahead. go Please

Caroline Beasley

we progress everyone, our the which and was she's Tedesco, and our Thank call results drive against financial QX margin for EBITDA joining strategic second executing recent the our free to platform plan another and initiatives today on Marie for to increased continue contributed cash thank growth, us you. going and results. to as you This to scale, our improvement. review growth, on me solid leverage significant to quarter CFO give is company Good our our to flow. morning, other you quarter make revenue both with details and more expand

benefit December Xrd, swap full reflect cluster our a the the Coastal May May quarter include that asset station for Boston Carolina closed the the Xnd from and divestiture XXXX of or As results XXXX. the reminder, also XXth

to we free share our reported results ability believe investors flow are cash As long-term. are most previously over in our results the as per interested actual reviewed, we grow

quarterly our attractive integrating cash to reach. and in liquidity investors. free results ratios scale transactions eye flow to of making acting that a we progress growth maintaining leverage market, our of share broader reducing Returning the demonstrate our more dividend to expand against accretive shares quarter to of on and and in second watchful base the opportunities while and capital and that revenue them in debt payments The enhance operations, all revenue, strengthen driving strategic shareholders make a development as form of recent our we our on and completing SOI our are our priorities, position existing namely

as swap was revenue of Carolina we X% year-over-year. saw we last result station divestiture quarter by This cluster. increase in offset an a So is overall which improvement our results, partially second Coastal Boston primarily generated starting the with May's a the of

we National, see local station in we've SOI flattish year-over-year the basis combined the expenses and in to in to improvements resulted recently increase operating when leverage income nonrecurring and During revenue quarter line on outperformed X.X% our second begun our top items. a related in the quarter, a growth increase in and X.X% excluding markets operating

value as year-over-year demonstrate disciplines transactions. as efficiencies XX Overall, leverage our to our and upside SOI little With further our our these points we and over more QX benefits related management expanded results Philly basis model, in scale. strategies from recent the the we as on of this results, operating realizing we grew front again to see margins well achieve the and we XX% are cost Boston

II of As our realizing the report value progressed be 'XX, has releasing we apps we our happy continue to to of platform the And the I'm Phase digital nicely. out that of and also full late in stations build make quarter. 'XX progress will with this mobile acquired

Analytic to out radio work Al, rolling of of advertisers with our we to our to terms continue of all with This digital exciting and par and put in radio. our is value recently as radio works. offerings strong advertisers on the in very we to which accountability, for us to the addition, are In can effectiveness that process us news demonstrate proving with we data, this partnered markets attribution provides hard

digital $XX company's the country the million. on programming complementary operations is price Moving the of stations Beasley's market. premium of purchase Heritage station underscores on, to recent acquisition I'm local acquisition review and our thrilled to regarding This our focus and Philadelphia's in planned for news six XTU, other

Importantly, the the include of forma accreted trailing and XX-month company and million pro $X.X to respectively. synergies this the with SOI be will closing transaction latest revenue does million immediately upon and $X.X

five. that transaction seven strength amount XTU than our XXrd understand began on quarter. more under rated slightly cash FCC Beasley among to this the number are bring quarter fan ratings. this is cluster accretion that stations monthly the LMA receive late the XTU The sometime the XXers July at Fanatic, also games. persons an in is we to advertisers XX-XX To expect early second, for and and per attract approval we Flyers in broadcast We in stations XX%. market from share three to among Philly ranked the and tied free the latest We of MMR, five agreement sports third operating demographic market, And flow expect the top fourth in better and MDK, or the which first. a

closing majority company, of neither Friday including any public the of the share, price of the the to per everyone is nor $X.XX who turning before offering. Family. want recent the received Bordes the Jr. of the call over approximately the million July a by a in announcement the X.X sold members on on On the insiders ensure the to XX, approximately shares that certain Beasley shares shares Beasley the Family, finally, share about our owned Bordes Now well a Greater for represent 'XX. prior Bordes, clear the million The for board at years review acquisition I announced price financials, sold to to our any we prior Media of sale company X.X by offering; is planned the of in our to who shareholders details Marie XX below sold the Peter of those shares

be and nothing analysts happy talking the positive traded trading expect changed has investors the about the growth share sale, Again, will price creation related be shares, we strategic an to publicly increase we not long-term our the to investors are in to a expect see we look company. and we to which liquidity objective let road with action forward in While at the And our and value company. being for on the of company's in our for clear, me conferences plans.

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

Marie Tedesco

Caroline. Thanks,

second will Let's start review I with our sheet. review from balance of the several items results quarter operating after a which

ago swapped others. $X.X X.X% million includes medical, cluster, category XXXX Second markets. our station X% increase the compared Augusta, typically Philadelphia, On which expenses SOI we WBZ FM, on mid quarter revenue the clusters. saw in to or a dental, sports single-digit operating consumer offset which swap, Carolina high as is we increase largest was was ago general Wilmington, services included giving our in for carries reflects reduction among expenses, to the $XX or include Again, such quarter real format the in net million a as Raton we to station in income the XQ category advertisers fully the Boston, increase Consumer basis, us and in net other Boston year-over-year the revenue to year Coastal operating asset services the Boston construction, insurance, FM $XX.X and has sold period expenses plus which across quarter. estate, and in for flat The during higher increases revenue remained million basis this in X.X% million million in increased by our category at in a period. a Station expenses small current operating a generated revenue a year net on almost period. WMJX year-over-year essentially $XX.X $XX.X which which remained for in Boca

was expenses Retail, was during investment quarter was million, to mid single-digit in staff. category primarily reflecting revenue $X single-digit category expanded mid in which largest our scale range corporate which an second Our Auto, low low to decline down our single-digits increase increased rebound first our marking Corporate a the quarter. in and a up the while third from largest division, digital in the includes to low XXX,XXX G&A

addition, the to second stock-based million and and $XX.X was cash a and $X.X the certain approximately decreased a termination year-over-year in gains again the a $X.X Media million in quarter related the consideration In million the the including we quarter second $X XXX,XXX in benefited change expense. life of last insurance quarter. reflects divestiture non-recurring in decrease items and quarter offset million of for XXX,XXX transaction for of value medical in fair by compensation operating These were XXXX. slowly benefit. quarter XXX,XXX Reported contingent second year Greenville-New of Greater Bern-Jacksonville to that partially the related $XX.X million taxes paid $X.X a gains The income of XXXX compared million non-cash the to

year-over-year our senior million $X.X to points. of extract valuable reflecting $X.X debt Total second repayments Excluding ability transaction debt our by quarter reduced million income efficiencies our expenses quarter of management our operating interest rate across discipline related to our with the refinancing We which interest the and second cash quarter approximately basis approximately November XXX and expense increased ended from second hand results. on $XX.X these XXXX reflecting and quarter year-over-year, gains million. our expense non-recurring X.X% XXXX platform. decreased operating the Beasley's

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

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

of times our times receive to company March year-to-date, allows leverage has the was total the XXXX. leverage, quarter. quarter June a CapEx compares on in year compared which X.XX calculating $XXX,XXX hand benefits in XXXX at $X.X agreement prior $X.X in year-to-date XX, million of times net million current compares X.X of million up at credit on basis cash $XXX,XXX sheet same The leverage XX, to compared CapEx and the Our to company our maximum million the with spend to $XX company And covenant the in XXXX. that million reflecting to spends the cash, net balance in X.XX

XX.X% cash cash focus growing XXXX reflecting reduction. a from expense For strategic flow increased $X.X XXXX million the free rose in from to On compared our million interest transaction, free X.X% period. ago basis, benefit quarter, $X.X year our cash to flow to million and flow management LTM rate the June free the our on $XX.X

for will initiatives to Caroline. it research We shareholders and With turn and where through our down value to position cash that, flow in when debt, allocate stations our needed to our and cash quarterly pay to that in broadcast. promotion, back I reinvest return our other free strengthen sales continue to will dividend our

Caroline Beasley

Thanks, Marie.

quarter up complete So the markets. one single-digit seeing certain in mid and are revenue political and is chasing with actual month QX the we in

and this Now of we that the a given vision that the aiming BD XTU are does impact fact include positive swap.

and acquisitions to acquisition continue disciplined platform. a creative in company As XTU, could further record balance manner investments will our transactions build acquisition our grow and strong of we of we with potential we demonstrated and our advantage with take strengthen track as plan platform our our out our sheet; that strategic identify to

managing are XX continue structure leverage we and return we to consecutive capital capital our our to dividend. quarterly cash paid and shareholders just We as

to very ability to radio show local be multiple we and We the distribution in U.S. a attribution great radio to had reach its commitment So to and how technology. massive number connection effective about is content, future. close, renew reach medium continues the are excited platform, and

going So you for do Marie few is today. I read We thank you. to questions with that, have listening that a

Marie Tedesco

Caroline. Thanks,

of is quarter fourth the growth political Our quarter. our first and about revenue in third question

for political approximately X, we in up already dollars more revenue booked as have with XXX,XXX political of August year-to-date, of July. today we book August than have currently and on ended the Now we

total We the politically in somewhere optimistic revenue. are we several political neighborhood that of expectations, that are and will we located $X.X markets or in attractive million receive in our

much that? revenue year-over-year? XXXX, we the 'XX you is question take quarter of will and digital how have seen next second Caroline, an in Our first-half we of have did and increase

Caroline Beasley

Sure.

are is -- So anywhere now that TLRing revenue long-term about think near of X.X% goals. and [ph] million is put I in seen this our I most perspective, quarter-over-quarter But this think digital. in PPM That's increase stations. was and generated not And what second of revenue to we our we our in a quarter. to digital XX% represents And about us. have $X clearly for about

So have lost they streaming revenue.

high digital the and so a of which our an quarter-over-quarter XX% all-time digital, $X for in is that million increase And that company. taken show has been out generate lines

are think growing digital we that our dollar. it very the to focused I fact on speaks

Marie Tedesco

Great.

the with expectations. Next about describe question Al, talk attribution we Caroline? experience if is Analytic and early could our product our

Caroline Beasley

Yes.

So we results seeing Al. from are great Analytic

But spend shows addition us cases We us that advertisers seeing other Analytic we existing radio new business. client to to does are working Al in and clients. also out that attribution to radio there, to helping excited and they are are existing which that be generate renew and this increase from work and in very bed. products It created our But what's show some that. out able our helping go spend potentially from these

Marie Tedesco

the final related betting? sports revenue is new seen any advertising And have Great. or question if to we casino

Caroline Beasley

Yes, this now in believe. is New Jersey which I lost --

Marie Tedesco

Yes.

Caroline Beasley

inquiries also New close between We and Jersey. we are seeing Boston, betting the for proximity sports there bode in and nothing, revenue receiving of because New just do will but and Philly, we this from Philly, that expect are Philadelphia Jersey well

Marie Tedesco

Thank you.

Caroline Beasley

with with questions. participating and today, on for that, you to Marie thank please or myself call So call free the feel any

Operator

your That participation. you does conclude thank today's conference. for We

Beasley Broadcast (BBGI) 3 Aug 182018 Q2 Earnings call transcript