BBGI - Earnings call transcript Q4 2021 | Beasley Broadcast Group, Inc.

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Operator

Good morning and welcome to the Beasley Broadcast Group's Fourth Quarter 2021 Conference Call. Today's conference is being recorded.

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 is 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 the morning's news announcement and on the company's Web site. listeners, can its days be company's site, remind of a on also Web call today's accessed www.bbgi.com. would that completion, following replay the I for five

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

Caroline Beasley

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

So, successfully nicely quarter outpacing strong the revenue political offset QX earnings provided with X.X%, revenue X% growth last guidance XQ we XXXX of be proved the to contribution. on we total as another our revenue call,

Our sports business in quarter. revenue revenue, were $X.X the a primary initiatives, digital and strong million drivers to increase the active new betting

reminder, quarter revenue $XX.X we full-year. million As and approximately political the political net XXXX, million of of recorded for a fourth the in $XX.X

our our and levels XX%, XXXX 'XX revenues QX or exceeded million $XX.X by local political, such, X.X%. increasing spot increasing with ex national fourth XX.X%, quarter As about

Myers, markets and with revenue the broad-based, quarters, increases Vegas, including revenue numbers offset declined large so were note to with is delivering including of are our political Now, for from to Of XX over-the-air as while Philadelphia. political, Boston, this growth overall in able increases, seven XXXX. growth decline the of that were declines digital over-the-air recent XX%. of special year-over-year with Fort portion here XX.X%, actual these double-digit quarter, spot period, Las same spot And political, this generate revenue X.X%. And a we from increased national for represents for coming from gains

X% XQ, performance the target year-over-year. while million. quarter was this for biggest our October revenue our XX.X%, X.X% political looking XXXX, full-year, had pandemic was as Now, and million. the for November Comparing the December a up or declined XXXX, $X.X in XX.X% was comparison impact, our X% to recovery, revenues than to And revenue comp down comparing quarter, up $XX at the or the and is less down was when

is quarter, content total a audience, QX as our we side digital digital on progress revenue While with platform, fourth was digital digital with grow the a and Having $XX.X marking on and XX.X% impressions XX.X% and or become to we expanding goal make evident the full-year to from up growing our marketable year-ago quarter. or said initiative focused revenue quarter continued meaningful the our comparable where making revenue, commodity, are million our during year-over-year, growth of have XXXX. valuable XX.X% representing rose of the of that, priority. digital also that's This total million $XX.X from XXXX increase full-year XX.X% represented in trend in total for revenue. significant XX.X% And the result, our

laser-focused are our noted near-term on previous calls, our cash diversifying revenue revenue. flow. total moving to goal digital are closer revenue And of increasing as of we representing We and on our stream our XX%

betting markets. our million Now, grow XX% our sports and our in driven revenue total of full-year, by for is This of New strong local an Detroit, or year-over-year, to betting revenue. was presence for and the it total revenue The increase revenue to Philadelphia, growth where $X.X these and clusters, continued million X.X% represented quarter. Jersey X.X% of reflect $XX.X the sports

Boston. our sports the station process sports is betting, revenue Massachusetts this by approved which in could of represent meaningful legalizing if year's quarter, in Now, third given

increase year's year-over-year, our expenses, fourth with $XX.X last down is to fourth million, directly $XX.X XX.X% SOI agency. in operating $X.X fourth which the quarter quarter of million million, build-out expenses $X.X our the related in to resulted in Now, digital quarter. operating million compared decreasing Breaking increased

which of as in sales in to the in implemented, cost an have returned, revenue. reductions cost and such research, and, course, temporary increase wage related were investment increase the cuts drivers of Additional XXXX, in and marketing furloughs,

Finally, increase we due are overall in seeing wages an to inflation.

going it I'm she's to over Marie, you give Now, and to more on fourth going detailed data turn to quarter.

Marie Tedesco

or quarter good results, full-year our revenue, million approximately Fourth million, political our net start our to $XXX,XXX balance Rocket of prior I organically increased teams, sheet. esport in $X.X of to Thanks, team. will and overview Caroline, everyone. $XX.X Outlaws, from by includes League, revenue $XXX,XXX the and generated overview $XX.X morning, with in followed the the and which X.X% esport We compared net new quarter created year. million fourth

revenues net X.X% XX.X% $X.X growing we XXXX increases ad and $X.X Wilmington XX.X% million Fort SOI the respectively, or our our million the clusters. and for Furthermore, Raton, our along $XX quarter our Fort in to are sources. expenses increased fourth for revenue to Wilmington revenue $XXX to revenue Philadelphia XX.X% resulting have Full-year XX.X%. XXXX, million, grew than Digital quarter Las are Excluding at quarter revenue million, revenue 'XX and quarter stream on million of with on returns $XX.X was political, Philadelphia, Besides $XX.X New Boston XX.X%, with million, to $XX.X million Vegas, growth, million. year $XX approximately the fourth of we more year-over-year Boston, Las and and $XX.X revenue. quarter year-over-year revenue Myers, year prior grew political, under to we would comparing Vegas, New ‘XX XXXX, Station operating Myers, and of increased just million million, generated diversifying investment and pleased down and in or basis. a had revenue getting this and the year-over-year double-digit Jersey, Detroit, Boca increased respectively, Jersey, to political or million. included compared in fourth just $XXX $XX.X which revenue when

digital expense Our the related increased directly to million $X.X quarterly of includes buildup agencies. our

increased $X.X the ‘XX million to million cost increase the increased our of with XX.X% million $XX.X rights promotion, fees fourth to expense XXXX of just in which revenue and normalized of the increase approximately Putting expenses advertising, up XX% in furloughed million Full-year level Sacred when wage digital was from played an our quarter. increased to more or quarter reinstatement $X.X investment million full-year $XXX.X A including esports for of of wages million. in SOI $XXXX. costs. Games to research and return A drivers increase sales quarter compared to station $X.X reduction operation. current related including the fourth includes employees. of the XXXX prospects, expenses $XX X.X million large the increase in third-party expense, in primarily pre-pandemic were other The

largest Now for looking And revenue quarter, at our this at the consumer total revenue. remained category revenue Services fourth our drove revenue our XX% quarter. we in an category XX.X% of categories for increase year-over-year

Auto, XX.X% this in which our category of clusters the as with Tampa represented our clusters. in which Las fourth Jersey. from over revenue chip, labor, accounted driven New double third revenue. year our XX.X% This around for accounted XX% retail revenue. Entertainment was by spot driven million approximately digit largest Vegas Augusta, sports Jersey with X.X% total increased was second Retail and And digit total year. year year despite We revenue. and for Our with by And betting $X.X Boston, and and total Philadelphia, Auto supply fourth of mid-single Entertainment a XX% grew X.X% our for quarter and of Detroit, continued increased increased quarter category, New saw year increase issues. year. landed over over This

and X% third early XX.X%, this XX% issue basis, On supply category was improvement a up has ground Services once Consumer Products expect fifth increased up increased We to sixth a respectively. full-year by and Consumer Consumer and quarter set category, products Auto XX.X%, significant XX.X%. was normalized. XX.X%, up show our Entertainment increased Retail Telecom and the XX%,

at market three revenue Kaplan, seven according quarter of fourth combined their our Kaplan, representing performance about market these X.X%. report revenue. clusters three that On of Looking increase XX% basis, the fourth market our market for Miller quarter outperforming clusters a of drove outperformed our to X.X% rose a to which quarter our Miller

X.X%. and local XX.X% looking to as our when increased larger compared a revenue We increased market evident very Likewise, digital investment are our share continue is share compared XX.X%. the our cluster market XX% our our combined spot taking which digital drive increased of to the local which clusters that as growth at on our market revenue basis to revenue increased digital combined in a

were Kaplan our local were the compared Miller the local market, XX.X% market, were up which performance, clusters up our Looking hyper the focus XX.X%. up full-year up to for which revenues With cluster’s full-year were XX.X%. to compared revenue, XX.X% at our

G&A Full-year in The for Corporate an increase and for digital revenues by year same and market million for compared $XXX,XXX had compensation to contract versus $X.X quarter million. the quarter of up expenses benefits Full-year the XX.X% the compensation. to and quarter the quarter of $XXX,XXX the the stock-based XX.X% $XXX,XXX year-over-year to then corporate XX.X%. income We were increased corporate or increased X.X% related non-cash $XXX,XXX or million to ago Our for up benefits $XXX,XXX non-cash $X.X increased the G&A services, income $X.X $X.X stock-based increased of Full-year. is million. wages, reinstatement G&A to the a in full-year tax

which Full-year compared expense XX.X%. Fourth $XX.X increased loan interest $XXX million approximately Charlotte and quarter for XXXX with million that gain operating or Our gain in operating and quarter the to million. us increased fourth $X.X ago was $X did due of land which sale total the to the operating the year, XXX% interest a other leaving effective income loss million year-over-year $XX.X term million payments from non-recurring quarter, for payments income, to Total $X.X during the from rate million. benefited million Full-year was increased million. a XXXX tax disposition of year $X.X borrowing $X.X on increased We quarter costs. the XXXX, around to quarter not any fourth from of a totaled scheduled income million have $X.X debt a expense quarter

the quarter And $X.X forgiven loan fully million XXXX flow CapEx This which the hand on with as free of it was including our was quarter lastly, to an November in as that, sheet back calculating on $XXX,XXX debt Fourth the million. Caroline. $XX.X quarter, leverage. XXXX recorded We was includes on spend $X.X year cash $XXX,XXX. flow for of quarter the PPP expenditures to cash Full-year or spend and capital turn prior million $XX.X million. ended will included compared compared CapEx fourth million, was free $XX.X PPP million XXXX cash and million the to cash Xth. which cash political I revenue. was balance $XX.X million with add-back compared of forgiveness $XX $XX PPP on our Full-year with is Our on

Caroline Beasley

Thank you, Marie.

by ever ever radio grew we radio in overall year-over-year Nelson In the to audience, broadcasters As quarter was for rating share highest XX% We currently continue data quarterly strategy the year-over-year and an cluster X% at only Beasley. gain we largest compared in local the advertising have quarter-to-quarter QX multi-platform confirms, of increase the the sequential stations saw the great continues highest in PPM content impressions with by had the This on share audio share and largest a by our quarter-to-quarter period, content PPM XXXX. with our average demographic adults largest at following success. markets. once X.X% to This And basis. market, PPM the our X,XXX, have is quality an impressions digital top and share industry. show digital over quarterly when looking the our driven again increased in XX% by X% a our adults increase biggest share to

and during the events In held addition and almost puts the season. at to every on which ratings priority audience station a we holiday higher communities in Beasley here performance, operate, serving charity

For food hungry cash hosted Philadelphia. the Steve's morning in camp President for pounds X.X food in for example, million was annual drive over WMMR's $X collected of million hunger or their show out and

$XX,XXX for they collected While of their causes Show, the amazing where for XXX show bicycles toys here the quarter audience and of positive was the in an content four almost good toys Orlando gift annual It cards and at held freak department the Morning Tampa. Beasley. growth drive, children and

Now our facet be on to and esports, company. which popular growing moving continues a of to

viewership, XXXX, revenue our expanding stream. we fan focus to based During on and continue

are we a release the have roster new eagerly team and We X. and management player place of the awaiting in Overwatch

content entertainment platforms team, streaming, From perspective, we are expanded look an player a fan we our and growth audience, players, our online audience popularity with a And During largely and month. League expansion to increasing forward digital, more a footprint base, all team, into XXXX, which the due and our we growth during popularity, already gang Rocket efforts. each matches, XX XXXX, saw base AXLE-RX, our XXXX. million of phenomenal in to boasts

and ahead flow, cash will growing looking sheet, first include into leverage. maintaining reducing audience strong diversification, to revenue Now, balance free improving margins, XXXX, quarter and focus and expansion, net our a

toward the We levels. expect progress and we on as revenue continue our these SOI gap to fronts close pre-COVID

our As quarter is And up January X% XX%, of revenue first pacing XX%. that with pacing and approximately February up down, March today, ended XX%, respectively. and breaking up

off a COVID a as but to variant gotten start, has revenue quarter growth. reminder, good first offset another Our could

an within our or hand synergies financial arise, either substantial accelerate on allowing and flexibility cash growth cash debt digital opportunity provide flow. pursue to space potential the investment should free and/or acquisition or address balance digital the I'll could on reduce Lastly, is our This the which sheet. a significant

going like done the before team be to us members I'd of Q&A, two the thrilled years, to quickly past am the everything acknowledge part our help are I overcome and team. for the to company doing So, challenges of to address across and they've

and into the move possibility many we of be will some, we also with know that there some but challenges, As opportunities. XXXX

So, on us for And, we Marie, couple have today. questions. think a at Beasley, thank behalf of you I everyone of joining

Marie Tedesco

do. Thanks, we Caroline. Yes,

Marie Tedesco

resignation about new The harder first any there question a lots is companies the recruiting Is of having Beasley is seeing talk great impact? employees. time and

Caroline Beasley

to side. on digital to And is culture from this this side from radio -- I options the these the radio that we're that address turn not focus brands stations impact And that we we're another we of are I our are great market new seeing into dynamic -- we point as primarily resignation. some have on radio challenges in that And recruitment. as we're in we're and to We -- many believe stations And company. the us looking going to really seeing us resignations attribute seeing of sure allowing say are areas be of on adjusting located. accordingly. making the will at we opportunities, the the Yes, different able this and helping the the to where that that

Marie Tedesco

the And the you. give question is expectations for second, we the Thank and you political last us got, that XXXX? can

Caroline Beasley

Sure.

million review we at XXXX, year and were year. back that's ended in year We in a XXXX. political. the so million political, go with just the we non-presidential let's So, where ended in about $X $XX

come So, for XXXX, slightly we are looking at political XXXX. north revenue in to of

Marie Tedesco

thank Perfect, you.

Caroline Beasley

were your myself. those please had. you have So, questions, any that, with reach free thank for you. out questions Marie the that Thank to you I should feel or to And we all time.

Operator

conclude conference. We And your once does today's thank all again, you that for participation.

may You disconnect. now

Caroline Beasley	Chief Executive Officer
Marie Tedesco	Chief Financial Officer

Beasley Broadcast (BBGI) 8 Feb 222021 Q4 Earnings call transcript