BBGI - Earnings call transcript Q3 2021 | Beasley Broadcast Group, Inc.

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Operator

Good morning, and welcome to Beasley Broadcast Group's Third 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 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 on 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 5 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 results. Thank quarter you for our Tedesco, this morning. our CFO, everybody. joining you, morning, Thank to us David, review me and Marie third is with

overall we to and XX% again increasing strong spot results quarter delivered generated year-over-year. increases pleased third local report I'm XX%. of where So and growth quarter-over-quarter revenue both We over-the-year revenue XX.X% third revenue quarter national with spot increasing revenue

the from well our digital While continue rebound the we pandemic, mid-quarter, platform. including as from core some variant as Delta improvements markets advertising overall to see an in impacted radio

our at XX.X% important accounting upward and year-over-year X% Xrd quarter compares and digital year-to-date It's for revenue quarter Looking recent of stream XXXX, with revenue quarters, grew revenue trend and a third steady XXXX total XX% XX% digital to of this total quarter This Vegas all, year-over-year increases declined quarter XXXX revenue. and above have XXXX, total XX.X% revenue X.X%. X quarter of accounted basis. on note for Detroit, of our but revenue with our XX%. revenue of approximately markets, across when and XX%. We Wilmington ex-political, comparing third that Las total grown third delivering revenue Furthermore, drove increases would with third

seen XXX% has let and we strength, of our go especially we With the back over have respect compared stream on as returned and at a performance ago. and growing in This local was so with So quickly office represented we're gap million our growth our our as It total and the year-over-year, passed, sports or ad second continues New Massachusetts next this, Notably, Also year. a driven $X.X impact to closing largest on betting, our to grow that categories, year. our benefits X.X% note, are Philadelphia, to touch the quarter. QX, very betting, revenue clusters. looking further markets We've of sports through Detroit in emerging Jersey this was legalizing category. when which, even meaningful the positive a broad-based of to if revenue will and the we year process by into the me category market it for have Florida markets. revenue

out Our as retailers reflects third national and in monthly and local revenue respectively. XX%, rose September spending XX% while year-over-year, consumer and and quarter more. increased dining the revenue XX% are July visiting demand customers and increased August

about digital reinvestment in events permanent increase. X/X marketing, expenses accounted reductions advertising of driver implemented and investment Our the that our and period, operating of significant XXXX, quarterly digital national of increased QX is cost higher spot offset in and expense of operating also in a agency revenue include continued internal our growth. our sales the for third by related expense quarter reflects the local to in levels the significantly which cost the

solely million generated we flow, cash our was ended SOI free Overall, respectively. November which XX% just quarter Given X% we and our advertising, over October of flow these on net included $XX last due and with and fourth factors, million to up million, down December free quarter are the $X.X pacing third XX%, million. year, the and $X.X with now XX%, is quarter is quarter $XX.X cash pacing our comp over and this sheet. of our third With balance up political positive

when fourth down are pacing be X.X% would quarter pacings of XX.X% Excluding we up currently political, and 'XX. compared with our

by at the further are even end the we the be hope of we than will 'XX, 'XX and closing that quarter. better with gap we or So even

So now to third it you a Marie, update on over to going quarter. to going she's I'm give further turn and

Marie Tedesco

will I begin review And update. said, the of as sheet Caroline. with Thanks, by financial a I a results balance followed

$XX.X to $XXX,XXX ad increased spends million, Third in from compared to which XX.X% operations. quarter as just includes Core net $XX revenue. approximately revenue esport net million and $X Digital with during down representing or year our were quarterly generated XX.X% $XX.X political we political XX% the net million quarter million, revenue $XXX,XXX solid rose Digital revenue, XX.X% $X.X increased prior million, or Breaking of total the the in third quarter. now Audio or

was and to the at million compared XX% closer was station or million year. year-over-year. or XX% July August up $X.X quarter, $X.X up was prior September revenues $X.X million Looking up XX% or

Caroline the million quarter third XX% for XXXX third Station million, XX.X% XX%. or excluding expenses of our resulting revenue political, quarter increased $XX.X $X.X in was in operating quarter a $XX.X noted, to As increase million SOI period. year to million, compared ago $X.X growth the

to bringing the million. represents the back of we the our inclusive Our increased expenses which digital agency, million increase And $X.X revenue-related approximately of are furloughed year-over-year higher employees, XX%. third sales, ad including quarter of $X.X of wages pre-pandemic around cost factors and concerts represents $X.X increased by Other XXXX million. million of expense is direct our inclusive levels, $X.X combined certain approximately the of institution marketing which or

the our revenue, part XXXX. increased saw our We of quarter improvement year-over-year. Moving category, XX.X% category Services Consumer #X across represented third and in much revenue category increased compared revenue board. to Entertainment growing XX% the remained total jumped to to at revenue to XXX% a Consumer our largest due of and upward revenue Entertainment sports-betting the and categories. total Services XX.X%

and and represented chain up X.X% the third our in spending, quarter. our the represented with an Notably, markets in flat held increases despite year-over-year most Boston continued back category of plastic labor, largest chips issues, auto was supply Retail year-over-year. Auto, Philadelphia. showed which total fourth of and revenue and lines largest category, saw third revenue revenue quarter total for XX% of XX.X% category Our

the significant aggressively growth have car models to year end as to sales. in continue We inventories expect new towards electric XXXX, again automakers and more Auto for available to and strengthen become and the of promote compete

Products, which largest also are quarter. of seeing category total approximately revenues, represented at our significant for category and stations events, of increased of and and sports increases fans X.X% at fifth had our we this was XX%. represented stations, Our revenue year-over-year. in sporting sport combined the WPEN, Telecom increased of back and Boston quarter's revenues X%. increase Utilities X.X% and was Consumer Overall, revenue XX% WBB total the where revenue Philadelphia, a XX% With

our for quarter of performance Beasley X local cluster when X including Kaplan, quarter, increase according very XX.X% the to spots We're taking of reports Miller our looking rose market, drove at a our representing compared market our local XX outperforming Miller Kaplan, XX.X%. combined top as share revenues, evident On larger to a revenue clusters at market increased market third Looking combined in significantly of share which of markets, that markets. is and the our to revenue the increased about XX.X%. which our XX% market, a XX.X% basis,

reinstatement outperformance and quarter, to in spots, compared expenses, for $XXX,XXX $X combined compensation exceeded quarter, stock-based $XXX,XXX Our G&A basis reductions. revenue. reflects increased quarter the revenue quarter. increased network no the NPR a Noncash increase on market the of year expense ago tax the expense compensation for excluding increase as Corporate the in and the in same stock-based to digital, a local, had XXXX year-over-year corporate to XX% or total we X% The is million. by wage G&A income the broad-based we primarily

increase $X.X in increased organic to the operating structure the We income loan million increase million, to don't Total SOI semiannual XXXX Our third reflects payments for income have to scheduled any our third operating the for quarter. quarter interest capital quarter February is payment XXXX. in interest $XXX,XXX million $X.X quarter. compared ago year-over-year changes. and X, The the $X.X recent in expense increased and million is second $X reflecting scheduled year

Third strong reflects quarter $X.X market turnaround the $XXX,XXX with million team. the negative cash XXXX, again to hard Xrd significant work and free positive a improved of and This the our flow compared growing quarter. position is in Beasley continued revenue share, XXXX meaningfully a

total PPP in an $XX remains Our eligible forgiveness. for of end additional at $XXX at outstanding is million quarter which debt third the an loan, million, with

the to million $XX.X on on our We quarter with hand. cash Moving liquidity. ended

spend for million $X.X was and quarter $X.X XXXX And to quarter with year-to-date it to Xrd XXXX, Our the million million the CapEx in year-to-date compared turn that, $X back $X XXXX Caroline. compared year. million to I'll the in

Caroline Beasley

you, Marie. Thank

content top own of direct in In largest our and quality is digital in XX-XX. with and adults PPM a markets advertising continue audio and metros. news according adults And all on Plus our with to focus and broadcaster in and representative culture place. outcome the which and growing X% Nielsen to air entertainment, Detroit as revenue team our So maintain any is consumers have a we largest increase top phenomenal growth. with of Boston, turn #X our our am proud of saw with positions station period, the and Audio Nielsen, ratings we drives best share the highest it's the audience, creating cluster radio summer it strategic year-over-year that average providing PPM priority dominant in market XX-XX. with And information, we the I the major extremely of Philadelphia, of share X demographic had focus

are digital a clearly our year-over-year our being to creating platform, we've million made platform. investments XX% up high side value well moving quarter. website and resulted for our for over XX record impressions QX content the on quarter Now impressions on in The with

our Additionally, year-over-year. was XX% streaming audience up

Moving on to esport.

release expected XXXX, gaming awaited quick is of up that industry #X Overwatch as provide final revamp by Outlaws take Overwatch update Activision X of in sometime game to start long expected to on the And storm. or X. coordinated May the April Houston the Blizzard's is X. is wrapped year we in with me a the Let this the playing video just to Season

team, nonshooter-PG made a esport existing as a this And for will Team the smaller us on summer team has a to on investment are the profitable device. from compete season, Rocket in played kickoff than younger fill, reminder, and as League a AXLE-RX and has plus that roster actively our October path virtually required Western signing operations, lineup of follow-up our more wide for on a be X call and our players can last leading as the next first Rocket and our search infrastructure profitability. efficient, games game, faster And season. to to Eastern and into Outlaws after of mixed sign to learnings the us This to the find planning the expansion their is a launched players. game already a and league allow from inaugural we're We friendly is we far every

our XXXX, the and our Grow goals into of We looking capital to our compelling revenue, and and remain content, the diversify main and create same. deleverage form expect flow dividends. in XXXX cash shareholders great to finish strong and and return grow free

XXth anniversary our As in and we that been this across year, certain produces celebrate core, media life-saving content values our At content our local we're multiple a cases, important. local platforms. have [indiscernible] compelling company more never

there many shortages forward. that on, expenses so like are have a points touch couple going labor I'd the These closing, X And on before could are are impact labor higher wages confronting. to of resulting being in and us more shortages that an nationwide

produce However, on increases any to not vendors preventing issues and engaging supply by chain content. to we've our been date from see we cost us don't affected continuing a note, positive from

experiencing are their Some chain decreased advertisers year. ad or of supply and our until delayed next spend some have issues

that. to come more So on

again Finally, team teams proud That we're returning opened, makes am markets I can't the in and growth as to cash our XXXX. extremely the our new events. of to working tirelessly station the quarter that hard includes free generate proud way of esports Beasley a normal have worked and how to SOI leaders, say of of third positive I enable enough members team our digital and have corporate level flow

comes free have did So myself script, we to up, submitted much. those we'll either questions with anything please that but to be that, questions. out our I that or cover not were answer Marie morning. in We not feel did this for any listening happy Thank you to thank and you reach if very

Operator

Thank call. participation. today's your This concludes for you

now may disconnect. You

Beasley Broadcast (BBGI) 2 Nov 212021 Q3 Earnings call transcript