BBGI - Earnings call transcript Q1 2022 | Beasley Broadcast Group, Inc.

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Operator

Good morning, and welcome to the Beasley Broadcast Group First Quarter 2022 Conference Call.

Before proceeding, I would like to emphasize that today's conference call and webcast will contains 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 the 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 like to 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 section can copy press of on You of the this Group's to your like time, conference At to over turn host, Caroline CEO, the Broadcast Beasley. Beasley I'd Please go ma'am. ahead,

Caroline Beasley

as strong share good quarter last and share the strong outpacing results you, revenue and call. first this earnings you for QX year-over-year in presence our total results. in morning. broadcast digital XX.X%, our with our me another Marie XXXX Tedesco, revenue, EBITDA basis. our I'm XX% everyone. market joining Thank revenue morning, you SOI, Thank quarter was to to first a with of resulted initiatives, for guidance us us growth quarter with and we on growth review is thrilled Cody, on operating XXXX growth Overall, our provided CFO,

million were are strong we New results of a testament sports in replace the and and $X and our the hardworking the to to a increase have. drivers power platform revenue business diversification betting quarter. beginning primary to efforts year-over-year digital truly are initiatives, team These the

QX XXXX revenue quarter mentioned, XX.X% rose As over first XXXX.

while year, national Over increased revenue revenue local the declined XX.X%. spot spot XX.X%,

of were again in Wilmington. broad-based Philadelphia, markets Our growth gains revenue with XX including Jersey, year-over-year and Tampa, double-digit XX increases delivering Boston, New Detroit,

year-over-year. was January quarter, March February XX% up almost XX%; the up at closer Looking and rose X%;

revenue levels. or to not regained the business revenue to XXXX. have is our almost X.X%, recovered the QX We QX performance million When fully pre-pandemic and from QX event difference down fully have revenue and $X which was NTR primarily achieved our that now at levels in comparing XXXX XXXX,

turn continued large unique page which, increase our page unique our creation the or goals are in quarter digital in This revenue XX% of side platform, a growth, and total digital our $X.X tripled represented rose resulted where and digital in million year-over-year digital are to related in XX% digital ago note views that's is up and accelerated of where $X.X comparable in first on when initiative increase growth more and than that views driving is We QX revenue, digital content total QX our directly special revenue impressions, audience, have from priority. increases we since the coming visitors in the has QX making year and digital comparing XXXX, from XX% with million A quarter. of the doubled our or revenue from total exceeding revenue. growing doubled X% XXXX. These on XXXX our

new quarter. closer resolved. some restrictions on differences and recently the from approved our Jersey We In expect of we to continue as on to And betting clusters. revenue quarter do of total revenue of closer recorded Touching comparable our we goal in Senate the us sport legislation these digital quarter. business. New positive Detroit, third by are of by side, cash to approved with $X.X down first the previously during category agency par meaningful are our version, once goal another this to was Philadelphia, on quarter sports Sports our We a achieve with but in X.X% fourth XX% of revenue slightly moving helpers digital Massachusetts, compared contribute our representing margins million to again driven in XXXX, revenue digital total laser-focused or to increasing and with near-term of to this was revenue, source flow moving betting over-the-air SOI betting.

were XX.X% revenue in growth the year-over-year or able increased SOI quarter quarter. to the First as $XXX,XXX we leverage

and we inflation-related sales of expenses reinvestment with revenue increases increase, wages, year-over-year in station XX% in directly to First also marketing. increased cost absorbed higher quarter the operating and related

trading of our leverage, debt, and We advantage was will our on reduction quarter. expense now into able hence provide and a completed of to bonds and our cash interest it free on first positive of cash hyper-focused and take benefit more a X%. of permanent week the Marie, flow. who April a reducing in which repurchased will were par the discounted reduce $X you is I'm This rate to below we turn approximately going our are details million at to had over

Marie Tedesco

good Thanks, and morning, everyone. Caroline,

start with results, followed first the our by sheet. review me a quarter Let balance review a of of

XX% to We million, Atlanta, grew XX% of including two and Boston, represents $XXX,XXX revenue to revenue approximate Outlaws the Myers, Fort $X.X year-over-year revenue Wilmington. last teams, revenue. Vega, XX.X% Detroit, net Tampa And comparison, or $XX.X we increased from first political as XXXX the XX,XXX compared which $XXX,XXX Philadelphia, our with to and first million markets, Jersey, esports net New $X.X Charlotte, of grew quarter includes for quarter Las generated in now all quarter. Digital three for million in quarter total AXLR-RX. revenue First and the year

of and to increased quarter and focused marketing investment wage Station to expenses of sources. million, are agency or is the to the and ongoing digital and operating from variance our due the XXXX continue to grow We of revenue. for on $XX.X quarter the success million approximately increased is our increased XX% diversifying driver this the revenue debt stream and digital resulting directly prior growth $X.X of in $X.X revenue first our sports million, games $X the increase in in $XXX,XXX. million credit revenue main related fee $X.X increases increase operating sales the approximately rights approximately which the Reflected million-plus. station variance stemming Breaking were the down cost year drivers of related in million, of fees, directly an played, $X increase to Inflation-related SOI bad of a buildup talent expenses, taken. above of year-over-year

total drove a for remained categories revenue increase category XX% year-over-year the revenue Consumer this in our quarter. revenue, first quarter. of we revenue largest at our looking category for and Now XX% services our at

improvement XX% second of sports around split more entertainment, million year-over-year. represents was $X.X revenue. of We that which than believe at and the and saw category, in Our chain of Entertainment for the first for the largest in Detroit part latter number Auto, auto the was have total betting, revenues retail down added this total accounted by in supply retail. year-over-year clusters jump accounted grew year-over-year show decline first revenues. with quarter driven partly revenue of revenue year, category saw XX% increases category This double-digit X.X% XX% New Retail increased XX,XXX. was quarter and and three Jersey our less provided year-over-year revenue category XX% XX% largest category issues which XXXX. this We by cost fourth can our normalized. total and

representing revenues. Moving up into and Telecom top our rounds of and the X%. was total fifth XX.X%, out six is up X% financial services, part categories

of XX.X%. clusters compared Miller three combined our Boston, now report quarter the Looking first Tampa Kaplan, Detroit combined at clusters their to Miller outperformed markets. and quarter our XX.X% for market market these to up basis, our to increased seven a according market that Kaplan performance On

by partially in stay digital reduction and and an continue $X.X exceeded and The this on And revenue their a benefit quarter $XXX,XXX total XX% compensation new million. expect to year $XXX,XXX year-over-year decrease. National hyper-focused Corporate growing quarter, in increase decreased the the the we G&A digital demand to and ago for quarter to business in tax CR quarter and growing corporate of stock-based we X.X% on to basis had G&A million. or $X.X our insurance will the stock-based of to market clusters T&E, first slowly course, same increased national offset with of continue expense local combined quarter revenue less a to our while by Our local, compensation. of represented than expenses is a related we revenues. initiatives of $XXX,XXX wages, compared in and income increased share,

million quarter million million operating quarter in related $XXX a of ago million. declined $X.X $X.X not negative million to of any first to largely a during charge to of station. Buca the $X.X to compared Raton an First did due year-over-year a Total year have the million interest expense debt full costs to borrowing quarter the income increased quarter, our AM compared first impairment We sale XXXX increased negative to quarter, partial XXXX. payments quarter debt in $X.X total $X.X scheduled period of a a and leaving represent with us $XXX,XXX

and However, $X noted, Caroline April X bonds between of repurchased X%. of average X April an around at discount our as debt million we

an X. on million $XX.X payment Additionally, made we of approximately interest February

flow cash cash which is with due First of million flow a hand a the typically $XX.X quarter quarter was free XXXX quarter with first ended the negative for $X XXXX negative seasonality to quarter, negative compared a us. million. We $X.X free million in on cash

is Our free reduce digital substantial provide second flow. quarter, growth accelerate or just arise could synergies space as our investments cash potential and/or an within that allowing cash acquisition a balance did debt or to the digital flexibility the us we should earlier financial opportunity significant pursue and in

Our $X.X it that, Caroline. $X I'll million. with compared back were capital the turn to And expenditures million for the quarter to of prior-year

Caroline Beasley

Beasley we Nielsen, valuable the winters, overall advertising content by ratings, the radio by [ph] to adults of Overall, average quality our and Nielsen Thank the the the have highest and less largest PPM major Stations other cluster gain and top in you, the all the highest industry. Audio Radio increased local to growth in driven In PPM. year-over-year audience, continued Marie. According X% to demographic share XX-XX. multi-platform when compared in experienced share share share year-over-year broadcasters

Beasley great quarter-to-quarter. once digital XX% QX grew as at and show the quarter impressions strategy biggest again, impressions digital Our content our we content. for digital XX% over was continue year-over-year ever continues to and monetize This to success

put prestigious Classic by station, being community, just audience evident addition for outstanding is Award priority community a our WMGK, on to always Philadelphia Crystal and awarded the serving performance, In service. we this high the Rock

League esports. game, broadcast to addition in-person was the Dallas We posting play teams Fuel kicked that against saw fan beta was all The the remain May live version Outlaws on being deal new live sold. base the X. playing the Moving first #X This our won the focused streams. tickets revenue of The was viewership, YouTube X. features time on Season since we Outlaws match and off with Houston Overwatch the to three big pre-COVID events first fan two matches. in Overwatch the on on very in-person and that and a release expanding Overwatch where This

strong remains to and flow. audience margins, into the maintaining balance free expansion, our focus driving on revenue improving leverage ahead flexible cash half of a Looking growing further XXXX, our second sheet, back quarter and diversification and and reducing

our pre-COVID expect as recession and and we fronts any to Excluding the SOI we towards levels these revenue impact, there. of each progress gap from continue close grow on

quarter and pacing and As respectively. about is today, down up X% up our up of revenue April and X%, second with XX% pacing was X% June, breaking May that

is In local pacing terms in and national XX%, local XX%. of down, while currently second national, pacing is up quarter

We are results. the proud of strong

Ukraine, interest face has in impacts rate high economic in delivering rate recovery an perspective pandemic. challenges, and of to past, are including early rates interest operated in even the too unprecedented We war inflation, but have, and headwinds, from Broadcasting inflation from what labor continued the in environment. the Group the high interest the It's the well may increases see

included company. you thrilled be CEO as number was the radio all of voted our Revenue U.S. and of Tina promoted Officer, of Sales, Board share NAB, nominee overseeing end revenues with from Directors where two Gordon be by for then, Lastly, to month. two, Former one, this oversaw VP And I'm to revenue the Senator to announcements: the Chief Smith, agreed has on Number Former she for the to of absolutely Murley

help Q&A, to are I'd for across even by economic and the going challenges pandemic make everything company acknowledge presented headwinds. to team to past they've our the more now us before So the and done members like doing

So with address do going today. Marie, to I a that, I'm have we few over. questions know that to it turn

A -MarieTedesco

That's Caroline. correct,

request a was categories take a few our that. I questions will on touch to remarks. And prepared have covered that revenue in We for and second quarter, first, not

XX%; So as approximately is Finance sized categories is is of today, and today look up XX%; retail like our X% is up as up this. is of auto XX%; $XXX,XXX. down, Services or up X%; top Consumer Entertainment

by supply auto you that we the the from you as Caroline? see, So an question category sale is, somewhat year. is also front, improvement and what contemplating of suffering the see still are on The next weak in the chain issues, M&A revenue end can

Caroline Beasley

various are and are hyper-focused focusing we're the or looking currently to be on acquisitions on that as we we would digital what digital So what last our we at on been have assets agency that company. several business accretive digital. saying content complement either doing, And the quarters over would

read I In because was to we it any addition, many our AM in did that that which sell of Raton company and properties, of may have longer. radio did station just think our you Buca off we strategic wasn't an located smaller one

MarieTedesco

Thank all questions other our you. in And prepared covered remarks. earnings were

Caroline Beasley

I you with today. further and feel thank a Thank And that, week. should have Marie have to either Well, please you much myself. listening reach Okay. for questions, great free all you, very to out or hope you any

Operator

now That We thank does you conclude you. Thank your and you conference. for participation, may today's all disconnect.

Beasley Broadcast (BBGI) 9 May 222022 Q1 Earnings call transcript