BBGI - Earnings call transcript Q1 2021 | Beasley Broadcast Group, Inc.

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Operator

Good morning, and welcome to the Beasley Broadcast Group’s First Quarter 2021 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 SK. A reconciliation of these non-GAAP measures with their most direct comparable financial measures calculated and presented in accordance with GAAP can be found in this morning’s news announcement 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 5 days on the company’s website, www.bbgi.com.

a Press today’s Room find the release also or Investors sections can copy press of on You of it. I’d Beasley Caroline time, to this like the turn At conference your host, Broadcast Beasley. CEO, Group to over Please go ahead.

Caroline Beasley

January you, to me comparing February X% again down joining compared and that XXXX, at to well February. strong, political. for with portion tightened XX.X% as midpoint this storm results. the challenged but the Tedesco, morning. markets. of were Jan of Overall, declined March revenue review Thank and on and when and when revenue increased is Atlanta, as trends, compared by operating in us our Northeast up We quarter Consistent was and CFO, morning. and first the restrictions first Thank we Stephanie, Marie XXXX, markets quarter part that Augusta significantly reminder, to were as several the in in you to March impact our of ended period to initial Detroit XX% a slowed same of February as good XXXX, the large COVID-related January revenue started February our due and as pandemic. increased call snow affected lapped industry with offset in we the each over XXXX our a X.X% and the

‘XX. quarter As $XXX,XXX QX compared ‘XX million comps net was to noted, as political revenue I spending of in first also political the impacted in $X.X

while wild news down NTR and both regard, and been QX and comparisons waiting revenue, of Tampa our Home ‘XX still X.X%. Tampa growth would these impacting that year. and Splash the $X make Normalizing took return ‘XX, about XX% in futurely digital digital we with we in as or the The to both is from event initiatives of have of the of Continuing we’re did of later revenue quarters, place which the revenue recent events NTR rescheduled million. addition, accounted events, have for XXXX revenue. in event not Wild progress show meaningful QX good quarter, revenue. In by the home political show to continue In our for of QX been this didn’t Splash rose momentum have our recur first QX XX% in year-over-year total popular for

a nature to more its growth digital revenue continued evolution. inflection for on effective flow we’re in and this Revenue fronts our represents a digital our first quarter. believe complementary with making an total will We believe report strategic our progress further on of and XXXX XX% highlight segment Given diversification point have remain and important of the we than our milestone basis operations meaningful begun accounting revenue, radio these esports and priority, offerings. throughout results cash this and

of marketing. in digital We’ll face the increases managed advertising revenue. our digital the content and and members listeners, services the country. pandemic, operations time our address continuing the communities our Beasley of a this first the local way for results advertisers, that as we is by long overcome exceptionally the of continued and in during in reinvesting in to investments many rise which while has agency, users a internal the fans preserving direct, serve our the is extremely in prospects our digital of proud driver In manner growth. our year-plus direct for health which while of The the advancing reflect headwinds began online flexibility and unprecedented spending and operating to deliver -- to difficult part implemented and some our esports business reductions in to low offset employees safety team XXXX, long-term some I’m research and expense also our we prioritize quarter rose of its financial our

initiatives making are by and strength and optimistic the market We our diversification progress and about positions of ongoing energized our content the are we’re the with future.

quarter rates PPP ended continue operational with recent expect As the debt and will in financing back. to to of this currently in most million months, Breaking vaccination few the to next receipt rise or with sheet quarter more growth continue Reflecting cash across event April and flow and the less revenue revenue May optimism, deal, pacing was and to up June cash pacing markets million our rates. $XXX our balance loan, come be second XX%, XX%. up our million we to with down, strength $XX and higher NTR is in fully XXX%, country and in XXX% that $XX.X respectively. And diversify the our business, up

We expect more the May and we June improve pacing into get quarter. to as further even

over the hand to give on it you going details more quarter. Marie to I’m to So

Marie Tedesco

Caroline. with balance of review the the results update. and provide Thanks, then start I financial will the sheet

X against First revenue $XXX,XXX to quarter compared year. the prior or in million million, XX.X% during Breaking $XX. quarter from revenue generated our in political includes net the $XXX,XXX esports which against February down the $X.X decreased team. in and to We $X.X rose the X.X% pandemic XX% comp of the in beginning XXXX. start down In the decreased was as revenue strong XXXX. comped mid-March quarter, the January XX.X% March, reflecting year-over-year, year-over-year we

SOI Atlanta For quarter clusters. the in Wilmington million. Station at resulting revenue expenses or our million, operating up year-over-year $X.X our XX.X% the for first to and $XX $X.X digital million decreased quarter, Detroit, was quarter of in

is Our as clusters. account, the through in we which continue allowance by research offset quarterly our and digital agency, reduction, will our as and in select decrease our we’ll somewhat of expense certain reduction the reinvest marketing direct including permanent a reinvestment XXXX markets XXXX, increases our result in of expense

flat revenue, category our XX.X% revenue Now, actual our basis. at revenue quarter businesses, our including was Consumer categories largest total for looking service-oriented at first category an this on year-over-year. of services, remained and

XX% represented Las of This XX.X% our Detroit year-over-year revenue. quarter retail, supply total Philadelphia, of year-over-year, XX% and And spot, category first our in showed Entertainment industry’s we down largest fourth see and to declined of Vegas. XXXX category largest landed just down total and quarter revenue. This markets, our potential representing third category ease. this saw including XX%. in category, increases of strengthen as year-over-year. first Auto, over auto was about in was revenues XX.X% the category several chain second Our revenue issues the XX.X% for

digital initiative to expense the certain ago million. $X.X Telecom to That X.X% and of the $XXX,XXX year-over-year consumer Our for a to and G&A same well XX.X%. Noncash had food, allocation to in We from quarter expense income the rate for the our was reflects expenses this cars. nearly down utilities total beauty XX.X% our fifth tax was pharmaceutical, The X.X%. of other and the tax no by compared quarter products was category quarter. declined and reduction products, category was which decreased $XXX,XXX revenue, as for year in the XX.X% increased largest stock-based market. XXXX or as X% category revenue. quarter the corporate decrease X%. corporate expenses of effective G&A includes first quarter represents Corporate compensation quarter, This

our the includes reflecting million income noncash Total from a restructuring. operating of capital income resulting operating impairment The revenue, year-over-year quarter. the million, First $X.X prior income not losses any ago interest included of nonoperating to was compared quarter first first scheduled year $X.X of negative XXXX do XXXX. of year while a on $X.X expense increased quarter pandemic the is million to million the scheduled have for million operating $X.X average the payments, million, first $X.X payment COVID-XX negative pricing $X.X and expenses. quarter loan XXXX interest August impact We in

was First $X.X a flow quarter compared negative the $X.X million year a in XXXX with free cash previous quarter. million negative

announced our previously quarter, at added years proceeds X terminate and us the Excess all we which coupon for B, subordinated X sheet Term bonds be corporate of bond at used The X.XXX%. offering, $XX allowed to During a were our to first issued net purposes. a general and were balance with million $XXX million non-call completed can of revolver loan notes. the

future that, for eligible were including the participate forgiveness. and loan SBA to debt growth as $XX.X the and The round quarter, and became higher loans. COVID-related these prior million due transactions to of profile the XXXX, turn We first we economic total on cash interest in $X will was I for continue greatly year business and areas. Together, million to loan uncertainty, with have and improved for and SBA X, approved our And companies quarter. liquidity $XXX applied qualify March and to for CapEx in $XX our could $X.X XX, loan. revenue compares back of carries media on capital quarter it flows with latest million to as Caroline. PPP a the We the PPP we million, addition X% outstanding spent in our as million diversify of to ended subsequently now that a In million, February $XX additional hand cash provide

Caroline Beasley

Marie. you, Thank

the Revenue over internal growth me February let the QX, million improvement, continue our in our with hold, February resulted and we challenges January, So the event participating see over $X.X we the in March. and normal. new NTR vaccinations from operating for recovery EBITDA why and increase and and a return combined weather-related digital agency quarter, on April take positive revenue and the a expense reductions add budget in are exceeded over SOI quarter. of we Despite lack now as first a sequential and this business bit March optimistic COVID of to about more in color in to

of Now consumers. our continue and esports. be to younger moving a growing businesses a to with to popular These on company mass appeal facet

on let a our give update Outlaws quick platform. initiatives you our So recent Houston me in

the And XXX,XXX the ranked for and off an secured asset did champions. of we quarter, coaching against selected only in Not for we #X the win Viewership but host our for whereby world in the swap, exceeded remaining as afternoon, after for the Fuels. we Outlaw reigning both interest kicked beating were being the completed match exchange then win our and #X pulled rival, we the season season the in Outlaws league matches roster Friday, on time most Renegades. During weekend. X new viewed matches against a we opener the interest and Detroit biggest historical in viewers, XXXX, live April the to that XX% player these naming the on Sunday Dallas a XX,

season competed X still league. results of one reinforce Following play, the past in additional early X X first status and and Sunday. of the and this Fuels are of and lost we ranked to Dallas we’ve popularity top positioned to having matches, are platform. Outlaws believe in fan-favorite the this weekend the we’re however, that currently these And We positive teams monetize

radio and with moving focus best our gain possible in on So share on local live stations the markets audience to we continue operate. our the content,

Our adults PPM in in best over ratings performance was QX the XX-XX. X years with share

prior And will finally, and growth audience pandemic and PPM markets ‘XX where major growing has open. the broadcaster of our again from as highest roll our we Like been the total In see our of more of up are the in was cluster share to up QX stations continue industry. or audience than to nearly PPM now XX% was fact, began, on-air [indiscernible] other once of since X% quarter, our for fully consistently last our QX up COVID, ‘XX. any

media looking Now produces never personal we At many, unique content. as hardship our our time celebrate core, for are during founding local anniversary significant a more our of company in so have and been XXth local important. values XXXX that a we ahead,

past our brands much connect of artists, as to XXXX, George remained much has founded what the Beasley and their important, the And true. year, most world favorite in exceptional audiences changed the has in since as local makes our business communities. Our so teams sports

Our commitment our local and to and entrepreneurship respect. culture innovation of

success balance flexible the while in the focused revenue, team enhancement diversifying strategic communities taken maintaining growing with our We and solid improve experience combined reduce the costs our and So us remain value. competitive markets, operating our we’ve cash priorities efficiency, long-term positions shareholder to and in serving on and our strong of and sheet. position our a flow for of steps our believe and near XXXX,

those several this with going hand to that, receive can questions we review to and did over morning. So it Marie, I’m she questions.

Marie Tedesco

Thanks, a that did release. Caroline. not in the earnings receive were we And addressed yes, questions few

includes quarter first XXXX So expenses esports compared This in you to marketing first with can on $XX expenses? to of quarter million. of flat Direct our corporate $X.X expenses equivalent digital our assets, provide the of investment $X.X added in we increase reinvesting in and for last year year approximately some expenses. we agency when expenses million our of year savings from place comparing expect which color the XXXX. the Including expenses to is our includes include small X.X% a as decrease. the expenses full full are the question, full year will declined overhead some also operating the So or and we expense of to fact of put also to and first of approximately million The expenses team, -- overhead our market corporate these that expect operating Digital operating shift research also to of a

on the balance between book So, of And liability balance are our comes sheet amortorization will licenses. and FCC the liability primarily past question. only that from our on if tax the sheet? Next explain deferred the liability tax realized difference be the assets first this Please sold.

million the Can expect year, it of of question. station? and and with remaining we $X X approximately existing this yes, with spend provide is normal on approximately studio to and build-out CapEx expected this markets, maintenance. being $X for spending property million radio some mostly on office equipment Next our year CapEx you in So insight of

to for flow Next free positive on we Can high past, free XXXX, you quarter. year? the guidance by us. free question. flow do cash next And expect in as produce flow is So a after provide priority cash cash this

to question. color Can does line how growth top Next XXXX. quarter? And compare to give some in Caroline? additional you second that

Caroline Beasley

Yes.

to use more they XXXX that we So that as We the year-over-year are comparison the pacing we internal do purposes, going are provided for XXXX. in believe call forward, relevant.

‘XX are was ‘XX June were to of of number. to we compared April May final ‘XX number. ‘XX ‘XX ‘XX then June of compared with April X%. May June May And ‘XX compared XX% So down ‘XX, final in XX%

we expect appears of June data, now, as where are have we could the point, ‘XX late, little being that So and And know, QX Right to I are will could be in this way. stronger at months. pacings very, of we be, we given XX% terms the the in QX end, a very caveat compared and terms potentially in of this bookings. than May. ‘XX ‘XX mid-single with few QX down swing that events, NTR bookings digits and the last coming it over either as And seen

Marie Tedesco

to And cash we plan more do excess one Great. retain Thank have going you. question. How revenue or you from cash use forward?

Caroline Beasley

Yes.

So on looking are reinvesting digital. balance research targeted company are are sheet, digital. in and for in towards we’re keeping also the we investments marketing and our for that our now, potential we cash And strategic in

Marie Tedesco

questions the all have. is That we

Caroline Beasley

Okay, time questions, thank have And great. your Well, All very any much should you right. you please for free to call. this feel morning.

Operator

concludes Ladies this today’s you. and presentation. Thank gentlemen,

disconnect. now may You

Beasley Broadcast (BBGI) 8 May 212021 Q1 Earnings call transcript