BBGI - Earnings call transcript Q2 2022 | Beasley Broadcast Group, Inc.

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Operator

Good morning, ladies and gentlemen, and welcome to the Beasley Broadcast Group's Second 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 their most directly comparable financial measures calculated, 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 to the following: In 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 this this Group's to your like time, conference At to over turn host, Caroline CEO, the Broadcast Beasley. Beasley I'd Please go ahead.

Caroline Beasley

good very revenue results. our you quarter for everyone. you I'm that Net our Tedesco, second momentum CFO, to Thank continued me morning, our pleased this report us morning. review Thank growth through And much. second increased the increase QX revenue. Boca basis, Marie exceeding X.X% joining is closed X.X% a with quarter. On of the grew our revenues which excludes for forma reported year-over-year, on quarter. we when guidance our April pro projected divested in X% station, that Xst, Raton to a

impressive digital digital political while primary were year-over-year. business revenue increased X.X% quarters, an in to betting, driver initiatives, our sports quarter increase revenue revenue grew Similar year-over-year audio previous new quarter. the to [X.X] XX.X%, and Second

business performance XX% from Our up as quarter from up XX% $X.X and of revenue, was second recorded quarter, new in QX million robust this ‘XX. we

Given the and of the content the of and remain we move creation we initiatives year. of all other as back our every market, half declining into backdrop, every economic expense watchful

for down share with is million]. revenue we gap net Also several national quarter, had declined going This digital, percent of that to have of and revenue in Over-the-air Now declines [indiscernible] or million]. in before, larger breaking expect $X.X given trends increased [X.X second national of [indiscernible] while accounts million, the as now by increase where the offset growth national, this forward, local. quarters local X.X%, by XX.X% political. than digital increased mentioned we a I by revenue increased the or past [$X.X

increases. year-over-year Our XX were our overall revenue XX markets based again of gains delivering with

we and year-over-year June Now quarter, May was was looking XX.X%, X.X%, as April started the economy the up slowing. to up then closer at see X% was

being enclosed XXX,XXX basis. revenue second Finally, ‘XX second quarter quarter less than quarter the current proforma our ‘XX off a to range levels with on

We audience and of converts our year-over-year visitors, We which continue our content. generated talent to of in growing increase strategy XX% to a our directly goals exceed total unique internal reflecting impressions. created

the on for a a XX.X% we revenue. within addition, XX, labeled in In comparable digital growth That's will our and acquisition the and agency completed in XX.X% provides XX% of accelerate total our June that our quarter white Overall, of QX small revenue up prior digital revenue year accounted synergies ago digital meaningful platform. digital our from quarter.

for XX% Our goal revenue total to XXXX. for digital of by remains revenues the end account of

breaking and category have morning and total that sports Philly on to this legislation in driven touching tentatively This this the by our million Massachusetts. sports in recorded in Detroit, And the this is of or I generating moving was during X% revenue Jersey. additional $X.X news Now in was do revenue revenue betting hours cluster. approved betting, we That's Boston closer quarter. of category New from in

$X.X to year increased saw Also increased year expenses costs million. last to over $XX.X increased with event compared slightly increased SOI NTR associated XX.X% revenue. we million sales quarter of year or to related Second revenue. Operating directly cost with

Of digital within in or reinvestment we which a have Studios, be so. non-cash new will We month to note, of the station Boston SOI next digital and expense in related marketing the moving first compared quarter And now of ‘XX, ‘XX million to second SOI ‘XX to comparing million, XX%. with when $X.X negative $XXX,XXX. by $X.X increased second grew This quarter margins quarter at Marie to quarter. third able par, it a over our of going an Similar to give we below deep that dive progress to settles million additional to take advantage in Marie? the QX, further making of she's are repurchased at XX% our into $X par, and with business. going highlights the trading quarter. now, we I'm bonds and we're hand digital you to and

Marie Tedesco

of quarter second of with and review up Thanks, Caroline. a with results everyone. good sheet. will And morning, our start balance follow our the I review

million for in Boston, net XX.X% AXLR-RX. revenue million, revenue X.X% campaigns. grew comparison, of for are quarter last from which XX.X% generated related also quarter the teams, in to year, clusters. revenue approximately X million previous And and total year-over-year New our from the $XXX,XXX revenue, in initially political revenue we Second increased including Detroit, Jersey, markets, Digital quarter. of up our or $XXX,XXX Outlaws second to the to including on $X.X $XX.X higher as esports and Tampa Philadelphia includes $XX,XXX We we and XX our than net quarter spend pass [indiscernible] XX% a [grew] $XX.X spend compared expected, represents more now Charlotte,

in [$X.X success over-the-air grow continue million, to expect [hard] growth related variances our quarter As the also year operating margin. in growth, directly station digital the from of stemming the we $XXX,XXX. million] the main down increases, investments $X.X of of reflecting is been closer approximately variance increase drivers prior to digital debt the were increased cost approximately is in margin $X.X to costs our period. a including Reflected concerts quarter assets, manage which inflation agency, expenses increase XX.X% of ongoing of which of $X.X revenue. has [indiscernible] or our pre-pandemic the resulting million, $X second our wage Breaking and to digital the XX.X% marketing the we these driver related increase, of year-over-year operating third-party this the million, in digital Largely $XX.X in to and for million to increase events a approximately revenue of from investment revenue station quarter margin of a related sales to the expenses of SOI expenses, bad approximately million year-over-year,

total in category of And the drove our quarter, quarter. year-over-year increase XX.X% service at consumer a looking for we category our Now revenue. categories revenue for largest this X.X% our at revenue second remains revenue

year-over-year category largest total at [indiscernible] Consumer double [$XXX,XXX]. all in was and entertainment our second $X.X total betting, low Fayetteville. Our revenues. the notch show which the and part increase this or $XXX,XXX with and place We Jersey entertainment services [indiscernible] largest and revenue but and [XX.X] category Entertainment New services third revenues. less in accounted partly sports year-over-year XX% two of XX.X% of about revenues switching revenue. fourth rose quarter revenues, X.X% by by for chain added category Detroit markets. We single and double decline growth believe This a more category X.X% this year-over-year. and improvements X.X% than million of digit increase of for clusters second Auto, accounted in [indiscernible] auto and -- latter provided The digit to I'm products increases in category a down was retail, saw can [grew] issues driven consumer moved down sorry, representing We X.X% of represented And spot, XX% the quarter have the XX%, down that of year-over-year. total saw normalized. was year-over-year, supply total retail [indiscernible] financial and year, revenue. digits in saw

Kaplan, [Tampa] to clusters our increased Miller three quarter XX%. to Boston, Moving according combined Miller to their market compared for to and clusters basis, markets. second X.X% the Kaplan, outperform quarter market our combined a that of Detroit, performance, market up seven On report these

decreased markets national the local and while compared our to than our represents we revenue However, combined [X.X%]. now grew less bucket XX.X% XX%, at

Philadelphia Detroit, our Our Fayetteville, with one in but and local Tampa, their markets. their of clusters outperform Boston, markets markets revenue Charlotte, grew all all in

and digital combined compared exceeded basis revenue markets clusters to up the as Our digital continue the focus growing year-over-year [XX.X%] also on XX.X%. markets a in hyper And NTR, this, digital on see revenue. to we combined grew

decreased expenses success XX.X% G&A new is to our business $XXX,XXX to stock-based in Non-cash by for million, benefit offset $X.X $X.X year-over-year increased to revenue compensation, tax previous we income in expense growth a benefit of $XX,XXX the wages, decline. quarter the million. ongoing and million. corporate related T&E to national year expect expenses. our Corporate the this $X.X With for the had of increased million, and quarter of $XXX,XXX quarter increase in around a year tax quarter, and to tax quarter of date compared expense $X.X non-cash insurance ago the and continued resulting The we initiative stock-based or businesses, employee compensation second to digital of offsetting G&A corporate

don't an total Second related impairment million the $X quarter of interest XXXX our million operating have related million the interest to million expense decreased $XX,XXX bonds [$X.X [$XXX quarter, debt to quarter. quarter, rate a in early the to scheduled April. negative income million million]. declined $X.X $X.X million], completed us $X.X $XX.X We Total increase due our proceed year with and insurance solely quarter payments received in the year to to ago debt to compared $X.X of of leaving repurchase previous during prior second any million, year-over-year in

As mentioned, we bonds, of Xst. $X on settled which an million repurchased previously our additional July

with be $XX.X Our second purchase. to net bond hand [indiscernible]. annual the going million approximately We $XX.X made in million on this used of is the cash ended interest of payment quarter of cash

us digital and/or space cash significant digital arise and allows that free investment reduce growth Our acquisitions as further provide accelerate pursue strong or continued and debt flexibility to our the cash investments could with in funds opportunity synergies additional flow.

our million, $X.X Boston to relocation and for office. expenditures buildup the capital mostly Studios Our and of were related quarter

have to that, to $X.X And out of We with our million received cash million it quarter a Caroline. $X.X spend build nets second CapEx allowance from back prior year to which landlord, in $X.X turn the I'll million. compared

Caroline Beasley

audience to impressions. unique owned on Marie. industry. more compared digital our expanded content local platforms, brands but consumed second you, Thank users Beasley the sellable content at highest important million, second XX.X more with driven operated the higher grow digital quality time as continue now the XX% before, quarter, quarter and mentioned in ‘XX audience Okay. which this the to even multi-platform our In grew digital [indiscernible] and of by spent

‘XX XX% Our impressions. O&O leverage are on to ability up we're the QX business. ‘XX. this our laser aspect of we And very focused capitalizing over in growing QX early on of our And were impressions to from innings

the Nielsen have the to broadcaster dominant cluster in the other on digital currently positions major ratings, we growth continue radio PPM. incredible to where highest when addition share in every our to In platform, maintain compared stations

most our Philadelphia, Bostin, in station one number and during XX-XX of the period. have largest we adults spring Detroit rating including markets, Charlotte this fact, of In

to rating season in Xth world. underway presently well is and eSport, the Moving we're Overwatch on the

our expanding coming presence quarters. an in in the report to academy are Thomas introduction St. this We the on Houston. more overall in of that's have University of And And we'll with the partnership with team.

seeing with platform ‘XX, the growing of digital ahead our driving we are looking slowdown slowdown our stay economy. diversification related and and we especially initiatives, an the strategic revenue shortages, and continuing inflation, back August inventory interest Now issues focused new rate increases and as to quarter on and auto labor half the to on overall audience, in July third chip and further just in the

down, today pacing up now is Third August X%. is of [indiscernible]. Breaking quarter down to revenue X%. pacing down pacing down September And is pacing prior XX% July is as and further, up was down year. that and national is breaking flat that X% local

and mindful are expenses our quarter in the we initiated second We of end cost through reductions year. the of

team before everything should lastly, move on being the to you to economic to also doing have to we we past members they for to sent thank feel these much the have like in, free And please challenges. any our are you after call once acknowledge address us so us. going for and across further company Q&A, the out reach done you questions today. questions help And again And I'd very

to you I'm point. going to Marie, over at it So, hand this

Marie Tedesco

Thanks, Caroline.

covered. there's a to questions script in wasn't that addition of couple So prepared our

the The [indiscernible] on please small touch such? If impact first and the digital question of of could the on this price revenue we agency. to was provide acquisition both

Caroline Beasley

Yes.

paid million. we $X forma year agency million basis the $X should So on about pro and revenue for for incremental the full be a the

in $X between expecting synergies those as result acquisition, the $X.X expecting are and Thank million this mentioned we're you. synergies. to we be As of million, in probably a script,

Marie Tedesco

total So, you in XX% approximately of And to for and increase break in script, in expenses. to the expenses second quarter, addition is digital much can reviewed expenses digital down as out? the our or how as we total is related well the what million $X.X build question the was operating agency

color, additional accounted party digital of questions. approximately agency Our our some $X.X And quarter million the $X.X million. that that. for And was for concludes expenses third total our also for

Caroline Beasley

out. All questions, right, much right. you All again, follow to week. thank attending And call up any please you free so have reach for feel good Have should the today. a

Operator

today's your and concludes Ladies appreciate this gentlemen, conference. We participation.

now may disconnect. You

Beasley Broadcast (BBGI) 1 Aug 222022 Q2 Earnings call transcript