BBGI - Earnings call transcript Q4 2020 | Beasley Broadcast Group, Inc.

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Operator

Good morning and welcome to Beasley Broadcast Group's Fourth 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

good quarter Thank fourth is you for our full with our CFO, year operating me everyone. joining you, morning, Thank morning. to us Casey. review Tedesco, this And and XXXX results. Marie

a we a provide market. activity quick update as recent $XXX issuer offering, a our coupon year X.XXX%. time bond notes. our all market success we non-call to terminate On of closed yield me subordinated on and on capital term with loan in the The our bonds million let at two had allowed X, revolver issued high first a and which at oversubscribed B were us First, the years February five

areas. provides proved respect are sequential more and October. fourth were growth in in quarterly third political we of Fayetteville, diversify growth fourth in net improves to business, million some added as approximately prior some balance million pronounced general November, allowing go profile offset addition to more seeing Augusta all be and and advertiser times well used the transaction which as the the in three as than We indebtedness, cash to for very higher in to QX, us revenue, we Charlotte, well. XXXX $XX.X of approximately continue corporate December, as revenue were we markets helped which million it beginning liquidity full political $X.X strong $XX revenue for with purposes. quarter, a and experienced quarters. remaining repay believe to the to as it the and and revenue of Strong with Overall, can this In flows Detroit, Beasley our sheet into to generated our in restrictions markets be our as proceeds quarter recorded we capital With we increased hesitation our we political was in expected

to December quarters. when down our generated ads to year-over-year game increases monthly to in markets. substantial related were comparing in which we with slightly of in X%, political. one in a third November mentioned when excluding is October several increases and of six down our the see continue and revenues less tightening We due sequential just pandemic Despite XQ overall improvement the restrictions improvement in weekly Patriots restrictions, and resulted revenues markets, which and second revenue revenue

continued XX.X% in for During QX results total And with as up digital meaningful our of the of X.X% as digital X.X% quarter, compared initiatives rose The to XQ in in represented XXXX trend was X.X% from digital XXXX. revenue revenues XXXX. quarter year-over-year we also evident revenues that's total growth of progress and XX.X% fourth to make all the revenue. accounted year

complementary nature our believe a the operation. business and Esports our XXXX cash of priority, strategic noted remains revenue and earlier, results digital we diversifying As radio our our and with demonstrate flow

discounts year's in Our high in fourth operating XX quarter with to initiatives, SOI quarter January XXXX and our fourth the the these significant increasing quarter performance operating expenses efforts the pandemic, the including and we benefits reducing $XX.X million, provided also actions decreased we to address of expenses which preannouncement. And from highlights negotiating Reflecting took our year-over-year, XX.X% last end the XX.X% range resulted million station $XX.X that fourth partners. QX. in QX compares in with

QX high XX.X% corporate XXXX. [ph] the in January end And million again, was increased by XQ less In XX to addition, this million approximately fourth at $XX.X $XX.X compared preannouncement. in expenses SOI our quarter to

very As XXXX, digital station, during of and was couldn't I team Esports prouder a we resiliency members year. on determination what by and reflect corporate, our challenging the be shown

business, of protocols unprecedented by our continue our a implemented all our endured us, and offerings, enhanced and For and while reevaluating from both on created and our personal We to standpoint. execute professional safety transformation. long-term content operations to changes and strategy digital reimagining accelerating successfully

now, a going hand into to So to you dive quarter. Marie give I'm it to over deeper the

Marie Tedesco

XXXX well to year-over-year our decreased or with of the net generated by revenue Thanks, results political as inclusive quarter, the to our to due a $XX.X in revenue. Outlaws $XX.X $X.X start was to includes the tightened Caroline. resulting markets will revenue Despite year-over-year, review which quarter the prior November $XXX.X million million played some some quarter one with political. just down of surge million, XX.X% in saw X.X%. year followed ad political at $XX.X of as of balance revenue operating million in or million. for year. Station game million We wave those $XX.X of Renegades. SOI Patriots and the sheet. COVID-XX million, $X.X Augusta, less X% fourth December, and Tampa Detroit, compared $XXX,XXX review expenses million headwinds, our Fayetteville, the clusters. Esports in decrease million revenues of of in million, restrictions primarily or I Full our team, approximately Wilmington to of $X.X fourth quarter decreased decreased a October to Fourth increased $XX.X grew quarter X.X% down we in XXXX we And second XX.X% Atlanta, markets. $XXX,XXX year-over-year, a compared the to due $XX.X net Breaking XX.X% from and approximately

approximately station $XX.X with to $XX expenses excess response and XX.X% initiated operating $XX expense expenses the expense is Full-year quick and of million, to cuts or full savings result against of the direct pandemic, in X.X% operating our Our our in the year of to including million. $XX SOI against $XXX.X excluding in significant XXXX million reduction including XXXX company excess million decreasing quarterly our decreased budget million Esports. Esports, for

Now our we and looking remained this quarter, quarter. category our at had categories year-over-year quarter. previous for for revenue to a largest that fourth X.X% including revenue in our XX.X% the category service in this down total being category consumer revenue revenue oriented And almost the decrease services, at XX% businesses, compares of

in second was Our fourth close category, Boston, category XX% X.X% Las of markets revenues revenue, Vegas category which period. to and came fourth modest XX% the restrictions total the of during political Auto, this entered This hit the in Jersey as spot saw revenue XX%. represented third year-over-year and a revenue, our larger total quarter. largest our for was Retail largest declined hardest New down increase some quarter quarter and our revenue. from represented these fourth around XX.X% and around at previous showed around was in quarter. of Auto the COVID-driven category of

and million or Consumer $X.X million. year-over-year to market. million nearly was to Our the Non-cash in quarter $XXX,XXX XX.X%, the initiatives category stock-based for $X.X is pharmaceuticals, revenue, XX%. an of down G&A revenue, products was benefit fifth was $XX.X this G&A to million was entertainment, same largest such the quarter consumer food, of expense X.X% the of X.X% and year category XX%. year. to XX.X%, decreased ago telecom utilities beauty to XX%. revenues. of $X.X basis, declined XX.X%, quarter a decreased for year decreased We for reduction expenses and products declined previously compared in full or The products for was down the parts decrease $X.X full corporate consumer down compensation corporate corporate Corporate full for G&A decreased was XX% million. as had of allocation category total XX.X% by $X.X expenses income to X.X% entertainment and down expense an fourth retail Full-year On the which the decreased our digital quarter Telecom of year quarter almost income auto XX.X%, XX% XX% from a services accounted tax million and total auto discussed and related million. tax $XX,XXX $X.X represented certain to declined this and and

was reflecting for prior-year year-over-year have in which $XX.X million, $XX.X year tax in income $XX.X million SOI, And prior a loss. the income the non-cash operating and operating tax impairment exceeded we significantly XX%. we Our effective for liability approximately included the quarter rate XXXX of disposition increase was And quarter million. XXXX. Fourth million no on will $XX.X gain

December $X.X corporate income expenses XXXX, In expense in XX. net quarter, a That of particularly for term $X.X pandemic, debt million million full-year by to the Full-year asset. loss charge due offset Carolina, addition, in on current piece during a any not of increased And quarter to of have reflection operating of We payments declined we increased expenses. scheduled million, approximately Total in from the of did revenue costs. million. interest the by the closed the interest fourth non-cash partly operating a first of divested during lower on was $X.X offset $X.X loan year-over-year reduced a $XXX,XXX direct XXXX, for North land this loss Charlotte, to million expense XXXX partially $XX.X of $X.X quarter. borrowing proceeds cash million sale in the with the half and increased impairment

$XX.X the $X.XX lower capital was proceeds aforementioned hand which free disposition. by at XXXX compared the to spending, with from of $XX.X net quarter [indiscernible] flow the on the cash proceeds $XX.X the Fourth December. reduced reflects million of we expense million quarter, quarter million the in cash million sale. XXXX from XXXX included also and land million. We quarter ended However, end $XX.X Fourth reduction fourth of

and quarter, completed debt of $XXX.X had bond forma debt completion including Pro of $XX.X the $XXX,XXX Caroline. was December full to XXXX. debt. million quarter to as XX, outstanding was $XXX repayment quarter fourth $X.X on CapEx year first year all offering inclusive I'll the of of current prior of total XX, million company compared by the it it million the $X back the And finally, And full in of $X.X XXXX in $XXX for existing million compared Our our million. turn outstanding unsecured XXXX total of December indebtedness, in in occurred of the XXXX, for the if million, that, to million with spent

Caroline Beasley

net that on Marie. down fourth political local of quarter including Thank further spot was national XX.X%. include X.X%, political, $XX.X revenue with was provide To just color and and revenue, revenue, down million increasing XX%, does you,

While political, still COVID-proof and the quarter, mention saw Esports continues online October both a expansion October increase impact advertisers. direct had play is facet October. is the sequential non-radio to its digital over a products grow priority sports, as of November and Digital September on consumers. continues new driving the in it's appeal to focused and company, sales important to over a that to net and targeting political younger team and to digital a digital laser significant we to massive excluding popular format, revenue on given of be increasingly non-radio our sell the revenue growing

terms the the Esports league's Gen to demos fourth up of most have successes enormous followers the look and popular and Our forward And building ranked year our first Y Outlaws team sales. merchandise property, as going forward. Gen and viewership, our appeal leveraging we who in gamers. the offerings social makes of to fan on media And respect to learnings our with majority Z

and get to quarter down, and moving month this respectively. followed XX% strong down improve as expect approximately up Jan to year's January by is We with XX%. decline consistent a into do on and a we Feb several and due pacing breaking Feb down reminder, COVID. currently first pacing XX% X% the quarter about March's that been And Feb pacing past XX.X%, with as XXXX, first months. Now And the that down quarters, and last a over start as XXXX and to March further March both had trend was over the has was

our quarter, recap quarter the in significant $X.X from revenue X% note, and XX% of third and quarter to improvement post a the with in expense of decline in positive is our fourth in operating corporate less XX% the SOI XXXX. to And So, and second quarter. in decline fourth revenue of million reduction quarter. decline combined compared us EBITDA SOI expense for allowed to same EBITDA quarter greater improvement were The the all special positive XXXX

longer liquidity performance cash highest leverage on our will Looking current maintaining reducing first And to our the leverage flow while our remains focus the our a returning times. continues our and no the we're quality include industry. pre XXXX, priority. higher. working will emphasis continued a ahead, with be net level COVID-XX With best and growing our sheet level of balance content, strong free to quarter the the And ratings level mid-X or towards under in a covenant, at into be we

PPM major according the up roll Nielsen, Beasley's once to QX the fact, share In again broadcaster other of cluster in ratings any highest was industry.

XXXX consistently During at do our period, to our was top advertising where expect in going prior of more now, demographic to one our XX total or ratings growing with we're And XX-XX. since our markets the forward three rated audience been had more pandemic up. adults And XX% audience stations cum we as on-air the began. our to XX see growth fall in in top cum of COVID. markets open our finally, And we the continue than has of

the doing overcome XXXX. to our challenges the before last team seen us members for that to year, we they've across address any are done and of quickly everything far So, have going like and thus for and help hits Q&A, company into acknowledge I'd

So thank to very to Marie. And I'm going much. over it turn you

A -Marie Tedesco

Thank questions, we one to have couple the you, a discuss return when Caroline. asking those? see received and just to And NTR with a business will we events of and first live

Caroline Beasley

live of our for opportunity than actually of pre revenue and COVID. returning. business more accounted excited the NTR events about We're X% potential This

hopefully, However, opening as and XXXX able and of year come states do into the this expect host start back, we revenue to up the events. by end going to this we're

Marie Tedesco

into opportunities any And we Esports sector. in and asked were this to also review dive growth

Caroline Beasley

proof our these allowed are we actually us as we Given year. and last to of complementary digital last on I XXXX. in where with is to because year. space. today that lemons this applying being traditional today, COVID our principles look XXXX. make do are We are that assets lemonade they believe out learnings, saw of Esports somewhat great we across we assets in space, combined assets do said, same that And and some But focus Esports forward to have focus want These our

of clients non-radio We revenue. are as is longer-term. And XX% internal to looking revenue in our we come and our the a number target added attract in said to digital potentially have generate past, from larger to

that, with thank So, you.

Marie Tedesco

that that And this morning. concludes had the you. from we Thank questions two

Caroline Beasley

a you very for have please day. great much time or questions, reach right. to you I All have thank to Well, any you should out feel your Marie today. And myself. free hope

Operator

lines. call. today's disconnect now and and for gentlemen, Ladies you may your concludes participation this Thank you your phone

Caroline Beasley	Chief Executive Officer
Marie Tedesco	Chief Financial Officer

Beasley Broadcast (BBGI) 10 Feb 212020 Q4 Earnings call transcript