BBGI - Earnings call transcript Q2 2020 | 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 2020 Conference Call.

Before proceeding, I would like to emphasize that today's conference 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 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.

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

good quarter Thank second you for our results. everyone. joining you, morning, Thank to us Chantal. review And operating XXXX

is morning. for on Tedesco, the conference on of I'd all, confusion Marie me with like First call on, time the to And this today. any our moving say CFO, my apologies then call

As they the the has to it lives, world and are continues as on local continues day-to-day to delivering to is premium information confront on. as respond the spread and our and critical challenges brought the to returning ensure and always our priority, and by changes been, safety in while of to work COVID-XX content our health our rely the listeners that country trust of employees our

We being the our teams upholding perseverance their one connects services our acknowledge to of audience And percentage a communities faced. information and this our now our platform As our we we with we with distancing, challenges unrest. news, presented to challenges communities. commitment I'm our local the get in as of critical of a and from the practicing companion, listeners to need proud continuous started, their for across than to trusted access stressed users the and actively I all efforts supported provide their now broadcasters, nearly team provide pandemic want other seriously. ever civil recent that to localism are than of targeted people the Throughout commitment despite very we've we ever, and communities. decades With serve home more for the greater them our social as take six members working and

best also local and In and of to direct we've our working significantly through national placing reduced including pandemic operating salary negotiated unpaid regard, with April cash employees virus expenses, expenses esports our outbreak, reduction we've stations, position daily on time of including partners. nationwide steps, this overall service company, XX% And As for been permanent success. and several I temporary have the since terminations, team, reduced reflect digital by renewed on advertisers. and salary our results second liquidity providers certain Since permanent a long-term this our we the my the furlough, quarter diligently X and our impact and burn taken executive landlords, discounts for the key the XX% expected, staff, same the through year. reduced end and interest management preserve operations period.

its company reduced operating the Overall, future through Board million. than quarterly by dividends. suspended addition, the has more In expenses $XX year-end has

XXXX. September credit On of until through the resume liquidity be under our minimum normal cap. we balance operating the our our minimum $X this we us amended and enhance a later a current the sheet, we in and. loss drew reporting such Until resulting revenue, bridge March worst can pandemic year, of time, EBITDA liquidity. on million revolver with between the April, And agreement down we to to covenant will test

XX.X% to followed Now, the impact in by performance this from The economic back early changes pandemic the first revenues by COVID. quarter. of which solid of the the looking our decrease the financial the to impact generated caused we significant demonstrated year, in beginning created March, months, two

the data same improvement pattern the from quarter. in quarter, we we third During drove revenue pacing the month-over-month sequential our monthly April and dollar second improvements for in of see

May here the rebound and we almost the visibility the in say month revenue, reduce I longer experiencing since for And declines greater of will through With the net entering robust percentage expectations term, ended have to we than we've continue changing sequentially July. month are with revenue impact near-term revenue is limited of the daily, but numbers our November. the been political that pandemic's goal we to trends August with

So, we are seeing continue. this trend

the While the serious balance the team, the and rebound factors experience challenges on setbacks be believe in and role we side. content, pandemic for to quality communities has the focus the personality the of stations, taken early key our the play and our entire actions we've we of ability presented our our industry, on, in will sheet other

our initiatives, and accounts we our basis compares to it quarter basis. quarter a down XX% revenue now This total progress revenue continued basis. XX% digital QX X.X% year-to-date second up Finally, make year-over-year, for year-to-date XX.X% however, on a on Digital digital accounts last pandemic, and with on despite for to year's with year-to-date for the last X.X% the and from year. a of XX%

it to of going who's to review over provide quarter. hand thorough a So, second now to Marie, I'm going

Marie Tedesco

with I Thank you, followed balance Caroline. a of by start sheet. of the our quarter second review review a results will

operating XXXX initiatives, comparable been being which under allocated WDMK growth the to on did the stations acquisition. expenses, decreased The April with our expenses included in with in response $XX.X during quarter X, the digital markets, in that After April Renegades' Outlaws was to businesses voluntary and quarter to few a and were year-over-year. of was million reducing case, beginning XXXX in especially corporate reporting cuts expenses Renegades. in the in the that down X, have in related key million broad markets were XX.X% $X And the We period. additional We and or, initiated second Second the XX.X%; teams, saw beginning are to of of our incurred from includes done esports May we $XX.X are XXXX our of generated $X.X $XXX,XXX $XXX,XXX operating to quarter $X In we better, decreases expense not expenses esports of $XXX,XXX delayed, in recorded company-initiated XX.X% the June year-over-year; quarter, expenses for based and of Fayetteville. our XX.X% as in we includes to our prior-year or quarter. added to XXXX. revenue down Breaking $XX including which have $XX.X to September not the the second a pandemic, Detroit XX.X% Station decrease doing $X.X expenses and of also net These close cuts reopening million. addition a related was million. we the decreased quarter in million million teams second so revenue XXXX in compared in million, an XXXX Augusta, net slightly cuts we round with million. cuts our June, down $XXX,XXX political from market first diligently

XX% Now largest at categories services at revenue And for includes category the for pandemic and Consumer a quarter. our had our this second period. the decrease we during this remained within category least the looking quarter revenue businesses. had XX.X% our service-oriented revenue revenue an on actual of This quarter. basis year-over-year decline

Philadelphia, down total XX% largest X.X% category Jersey. which into category the third hardest and moved represents quarter. around XX.X%. for revenue the of declined hit in was revenue and Charlotte with Our of our our almost was second Auto New This revenue was spot retail quarter in retail, Auto Boston, category XX%. second

The down XX%, down products, auto compared G&A On the is discussed entertainment consumer decrease products corporates the in $X.X mentioned consumer And And Our expense certain declined quarter auto XX.X%, related quarter same million the as well decrease a our million XX% initiatives up the basis, Corporate category year investment, spent beauty and rose this down decreased of parts. of for $X.X such Telecom to X nearly XX%. quarter XX.X%, largest was $X.X second approximately was services ago quantify to pharmaceutical, and to the from with in digital same-station million the products fourth XX%, XX%. $X.X corporate food, digital G&A to reduction top category we to year-to-date. allocation a decreased consumer declined and markets. as a was retail telecom expenses declined to as year-over-year expenses million. XX%. previously

seller have not described made to during expenses down balance operating debt our our year-ago $XX the and the effective stock-based quarter scheduled was decreased earlier, tax during offset XXXX. approximately by period. second were by income quarter balance and to note as $X.X was We million, rate we an XXXX We negative quarter for of in operating income which in to expense a benefit of in a amortization on $X depreciation million quarter. the $XX.X will income the $XXX,XXX increase Total decline our No of second had corporate year-over-year to SOI $XX.X payments quarter. million lien $XXX,XXX tax compared the first markets was sheet quarter reduced during expenses. the quarter hand We of lower payments million. quarter $XXX,XXX for XX.X%. Non-cash the other shift these the was million Reported $X.X million. the did voluntary of $XX.X to interest quarter. positive with of digital and ended an continue compensation XX% through the million, and cash any We reflects The the

and of were XX/XX/XXXX. no the in debt $X.X March This includes evident. previously to million Our million George which total revolver million compares agreement, the XX, as drawdown year-to-date against $XXX $X.X infusion Outlaws credit related onset $X XXXX our million to additional million amendment Beasley. million of the compared quarter year-to-date on a $X to outstanding the million, debt CapEx XX, as Based million to $XX The $XXX.X cash of COVID-XX announced current current in debt the covenant the our quarter prior-year June XXXX. $X.X compared and includes acquisition became there We done as at XXXX. spent measures quarter Houston of impact was in latest $X from of million unsecured to

with the it We to have scheduled spend And of through will we projects CapEx put I our the end Caroline. on hold. turn year projected reduced as back that, have

Caroline Beasley

Thank you, Marie.

local down and on XX% provide more XX%. to revenue XX%, revenue, spot down down So, national color second quarter was with

delayed revenue, XX%. earlier, smaller due Boston our direct less is We larger their also of markets, Digital course, focus to some including by down the markets this our COVID, impacted was of local opening Philly. partly saw and, mentioned as being and business of and on

report partnered Leslie and over the audience League and Samsung the a Mitch with casters, very as to And Texas series, highlighted stations in to Lyon we event, challenges first-of-its-kind Houston on which were serving life produced esports matches what during XX and a played markets esports in and pleased competition competition the further leagues COVID. as Esports May, other Dallas as Jake Tegna, YouTube. who in place player. as of participating Moving professional how anchor well one competition the chronicling thriving Outlaws and Uber awareness took esports front. and professionally in produce owns The the with weekly fans Showdown Lone in sponsor. the early three-week the reach Fuel, to began Star docuseries and team TV both is throughout a show the reach as The period world new like to Dallas continues continued the Guild that series on the by with Overwatch only to drive of We're is to

not Now business for guidance the the environment. quarter third of uncertainty to current going specific the We're moving providing to on quarter. due to be

our ending than the progressions at higher down as earlier, we're including revenue However, sequential July quarter. is we with mentioned seeing to And July. our goal are number generate pacings in a revenue positive we And for solid month-to-month, approximately monthly I ended August XX%. political improvements entering contributions,

business the online. regard, challenges great this whether teams our race pandemic, users challenges on closing, and through to have value the protests the based pandemic only air the to carefully model. information relations. by our Beasley up and communities or minute we on So, today's content step serving navigate and and us evolving allowed to that's back but critical core our and provided stations of the reassess In related with listeners and on entertainment opportunity presented local our continue our the not to information, unrest In civil

agile emerge Beasley. will more the and side of on other this a We pandemic stronger, smarter

In forget industry radio a addition, opportunity not during and time and must have unique Beasley we that. the this

facing. I'd our reinforcing we from day local. like are Beasley and us We are competition. And communities get they've employees and help live serve that everything we as free. thank and are sets done our at this for this apart through we every are are to the doing challenges to many our us We

questions of we're have that So, think to Marie, with a that, we I couple going address.

Marie Tedesco

regards most on ones are Yes. is cost review several $XX few call. and the follows. questions, basis run With a already release, cuts will one a the the on addressed I received have as of first permanent? in referenced with additional We press which of these been cuts this rate million to this

Caroline Beasley

$XX million are cuts for cost of these the majority So, is XXXX. permanent. The

However, temporary about the on wage XX% of cuts. this is based

Another XX% performance. upon is based

So, revenue we year, next expenses of as returns to some return. expect these

Marie Tedesco

we asked And on and not were the finally, working going their payments. you. or capital touch thoughts been Thank on whether advertisers to have stretching forward

of seeing first our of are receivables advertiser we significant are even capital cuts And fairly have saw levels spending. expense at older accounts So, substantial receivables a some in. coming going that And with now on. forward. normal, very stretch in earlier, benefit though higher We will than all, prudent payments are that our Caroline we our made we early mentioned as working

better line slightly collections in than Our projected. are or

Caroline Beasley

Okay.

So, And have And for questions, to out feel today. I'd you like week. please have you myself. hope great to dialing you thank reach a or free should call our to that Thank concludes you. either any Marie in.

Operator

gentlemen, Ladies Thank now today's and concludes this you very much. conference.

have your Thank week. rest may the a of lines you. disconnect phone You and great

Caroline Beasley	Chief Executive Officer
Marie Tedesco	Chief Financial Officer

Beasley Broadcast (BBGI) 9 Aug 202020 Q2 Earnings call transcript