BBGI - Earnings call transcript Q3 2020 | Beasley Broadcast Group, Inc.

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Operator

Good morning and welcome to Beasley Broadcast Group's Third Quarter 2020 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 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

me morning, our to CFO Thank review already you for Day quarter that morning. you vote. haven't operating our results. this everyone and joining you everyone, with thank out on Marie us Tedesco, is and Election if gets good third to We hope

So impact on results, communities safety local measures the customers, a before top and third wanted I state our And guidelines. federal quarter following the remain health priority. diving into implemented of variety our our safety of to acknowledge employees has and of we and our internal ongoing serve. The pandemic our the employees, company

we we'll our trends quickly adapted to a the operations promising various in such loads. As environment. seeing in we April discuss are moment, And changing as

the pandemic closely continue of closings. on any and impact potential We our business to monitor the

group, our arising, While be unless strategy. to can have realized Slack, teams focused and safely back collaboration work our to more visiting We a to been remaining Zoom effectively takes person conditions, if we will together than and I've our our while creative through highly cases in risk our can are work studios. believe safe. place team offices, pre-existing that know return offices and let we're they best then on in rather all that future our our are or markets in

team's sales digital. own from our And areas such core. air as its extends or at created to is talent our to innovation business our bringing Our creativity

across impact in of sooner with is social normal in their U.S., in normal through compares of up overcome that life plans customers to normal a the interaction, which the date know or businesses we and rather that we hope mask-to- the the pandemic. have colleagues It can personal our we than the guidelines most benefits that like nothing more seeing really new And get back mask. developed other and to place people to new We our face-to-face return mind sharing and to hasn’t idea later.

quarter third weekly the on the we local the our throughout results improvement started continue While impact app, vast continue of and in reflect each national direct see to and a quarter, pandemic to we advertisers, down quarter. we The month with our more business where dollars significant recovery year-over-year, compared to improvement XX%, second month. revenue a strong the on ended previous resulted in than book marking quarter third the in

third the revenue up over August. again July with quarter and August XX% During we July, June, up September monthly rising over sequential X% over XX% drive improvement

political disability our two annual expectations booked limited, So more than projected and remains times revenue we political exceeded budget.

in play ratings, our we from to as of content, on As our ability This we result pace of focus, communities the our actions quarter. balance our quality unseen the a economic EBITDA for is positive have we the evidenced clears and the experience challenges, to our previous early on, sheet by SOI took low. recorded team through strong personalities contributed our the serve all and recovery the April role we that rebound

total progress year-over-year and make we addition, with for X.X% In QX accounting initiatives to digital revenue. Digital increasing continue of revenue with our growth XX.X%

operating from has the as approximately wage our $XX quarter, permanent operating expenses more for XX% disclosed budget. also temporary and furloughs, including operating year previously Overall, permanent cuts, its company the our reduced through than discounts. by negotiated expenses by We reduced the station and continued terminations, million XXXX in

it of bridge the agreement we reporting, can over to begins and do now, normal in to to credit until September hand Marie amended will into we which dive provide revenues you deeper covenant a I'm normalized Finally, provide quarter. our a have who going 'XX.

Marie Tedesco

you, Caroline. Thank

followed of quarter start third review by an of overview Let our a balance with me results, sheet.

of a from Third the July operating XXX third expenses XXXX. resulting quarter quarter prior XXXX in to $X.X operating digital of generated the our net station. million revenue Renegades. we decreased expenses revenue XX.X% a from $X.X to to year-over-year. and for the the in Also the million XXX,XXX September, inclusive in not of million our of $X.X revenue, down SLI million Breaking our $XX.X station are year. of corporate August did in which XXX,XXX our we Station in September down expenses We expenses related the XX%, but quarters that second growth added in third that the related and to was now decreased include Outlaws for to quarter was WDMK acquisition, recorded expenses teams, quarter quarter, XXXX to year-over-year and esports $XX.X during XX% expenses allocated or XX.X% $X and year-over-year, XXXX, million was down decrease under net million $XX.X initiative, The million. saw political XX% the XXX,XXX have compares

end of can So to market diligently voluntary $XX cuts first in our have XXXX continuous in response, pandemic reducing we our close and expense in corporate of operating million. quarter addition million second through including to been $XX savings see as tax of membership a and the expenses, you

our at categories basis. for looking third quarter on revenue actual Now an

in at of a period, impacted and remains revenue, had largest the category we XX% consumer decrease this quarter. year-over-year our During category services for XX.X% revenue this our

almost declined total revenue volume was the our Our spot category around second XX% retail, which with retail revenue Discount in revenue, XX% and with Las Charlotte, hit in largest XX%, for the our Boston, was and moved quarter sales almost third third quarter. of into Vegas. hardest Detroit category XX.X%. Auto around represents

was to of percentage compared total the category when total meaningfully finally quarter revenue, election as category largest products this of last revenue for from third products as as And the Presidential well category centered Number of Our consumer X% I political, utilities to and was accounting was revenues, down loss XX%. food, were for parts and quarter and year, and at pharmaceuticals, cycle. this fourth auto which X% as XX% up such last declined nearly XX%. beauty telecom and X.X% five

decreased XX%, On and consumer down was decreased the digital million, million. we for down consumer million spent services entertainment reduction auto in market. the was telecom XX%, retail prior our to compared initiative same year $X.X G&A Corporate digital products expenses The station declined corporate $X.X G&A $X.X same from previously related the of quantify year-to-date. decrease XX%, to down quarter the approximately to XX%, $X.X third basis, quarter investments, the quarter declined million XX%, to was expense corporate the the allocation is in certain up expenses and discussed and To XX%.

quarter, to to was will stock-based the We XXX,XXX these $X in an digital down benefit continue we the of of income accesses our to million. compensation markets ship quarter for tax XX% throughout had Non cash XXXX. and balance the

depreciation decline income ago so the $X quarter. of expenses. in million, and operating of rate and was to reflected an amortization year The quarter purposes. increase effective last deductible by quarter are expenses was compared that - primarily in operating $X.X the XX% of quarter was million lower XX% for which our offset Our decline as million, XXX,XXX, the tax and income third XXXX $X.X tax corporate Reported in the not first for year-over-year,

year-over-year during increased quarter We scheduled million. in on any facilities our interest So not expense death third $X.X quarter. have the XXX,XXX to payments did credit the

on with million. However, cash ended approximately to by hand reduce of our $X.X we use the We shops the quarter million. deaths $XX.X immortal

currently compliance, XX, reporting as million. minimum September of inclusive Houston placing requirements Amendment total XXXX. resuming million the of $XXX.XX our Our debt debt of we reporting liquidity based million Outlaws and were in latest outstanding to normal to unsecured XXXX. ad compares until current credit end of the have of at bi-weekly agreements, and remain million, current XXXX, revenue on expect related $X.XX This to in September X.X in quarter $XXX Based covenants third we're we And of trends, acquisition. compliance June XX, on of a was at the

$X well first sales $X.X initiative as cyber CapEx throughout year-to-date This And our quarter, year. in concludes company to to million that's year the $X quarter, our with the compared buildup and as Caroline. for in corporate security million Finally, the prior XXXX. million to compared out, million sent the been $X.X that, quarter, back it and our ongoing Philadelphia in turn I'll year-to-date,

Caroline Beasley

thank Okay, Marie. you,

further XX%. color on and XX% quarter provide to political So with down including spot down revenue, local decreased national third XX%, revenue,

by facet being Esports sport to increased earlier and continue popular quarter. a appeal X.X% have millennial have growing spot given our quarter, corporate and reopenings of our their to to to smaller is course, market. slower format, see We'll COVID. enormous COVID bright the increasing in of the monthly more company gaming. this then esports on be business, a come own has next And also local markets in Digital the X.X% continues less group offerings impacted direct with basis. [indiscernible] year-to-date larger was and mentioned on partly our our and to due it about We and as by

goes high-single to as pacing digits the down and in as improved digits. up minimal October political on fourth and we far and Moving well has below ended as November double the quarter, is despite

and heading increase, fourth remain cases we quarter optimistic the cautiously COVID about As remainder XXXX. of into

second is a and the significant decline us from XX.X% positive with quarter, expense XX% quarter. of the our recap, in coupled to reduction $X EBITDA to close revenue improvement So and operating decline SOI in allowed million to for the

the include quarter a at our ahead or higher. sheet balance maintaining XXXX, cash Looking the our will fourth focus and flow and level current at with into strong growing liquidity

the 'XX, towards While and our a quality under content, priority was in industry. on of With that to eventually focus third is levels, performance we we goal of our leveraged and the when until covered times continued are below. in leverage covenant stations do ratings we working leverage highest a think mid-four the fleet aren't our our the times or returning best remains four our level quarter

Nielsen, in ratings other would we or I more our persons And our have three the highest rated in share XX moment, In finally, any one the At industry. like top stations markets, XX demographic XXXX. broadcaster cluster [PCM] with roulette QX top of the to was the of made advertising you fact according they the to months. seven call. our employees, And help doing for the acknowledge behalf our the everything sacrifices of we and us for have all and across thank that are our last address challenges of the members very that much on overcome into of to tuning team they company major

over So, hand you. I'm to it to going Marie

Marie Tedesco

Caroline. thanks, Great,

have So and morning this those. ask Caroline we And that, about received one review spacing. we question you updated as our would of because always to of tapings we questions. our for And current like

Caroline Beasley

high single in improved the as and double-digits. so earlier, it's And in November well. did we pacing digits, has the end down Yes, I said low up October as

Marie Tedesco

you. Right. Thank That was questions. the all

Caroline Beasley

Well, very thank much. you Okay.

or If free you any out appreciate Marie morning. have this reach time questions, feel to we your and myself please to

Operator

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

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

Beasley Broadcast (BBGI) 3 Nov 202020 Q3 Earnings call transcript