Earnings call transcript Q2 2023

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Operator

Good morning, and welcome to Beasley Broadcast Group Second Quarter 2023 Conference Call.

Now I will turn the call over to your host. Please go ahead.

Unidentified Company Representative

Thank you, operator. Good morning, everyone. Factors webcast results forward-looking risks Form of described the and future about and XX-K call most XX-Q. in and our our performance operations Risk on as conference supplemented will report quarterly statements contain our uncertainties recent by Today's annual of reports on Form section that involve XX certain within the measures webcast also of S-K. Today's Regulation financial will contain non-GAAP a of discussion Item of meaning financial with in A and website. measures announcement reconciliation comparable non-GAAP most GAAP calculated found measures in be their and of this with accordance company's presented directly these news on can the morning's

I would of for replay be also a accessed listeners remind X days its company's completion, call the can following today's on that www.bbgi.com. website,

a Investors of on our copy release of sections find or Room press the website. today's can You Press also

time, to over Beasley. At the pleasure CEO, your go host, my ahead, this turn Caroline Broadcast Carolyn. Group's Please to conference it's Beasley

Caroline Beasley

joining everyone, our CFO, offset decreased Thank advertising. and both in review spot were initiatives and is you, XX%. revenue in was up our headcount quarter EBITDA pleased Overall, which growth SOI quarterly to morning, this was second of Good increases with Tedesco, network, by resulting And were growth local in our national double-digit and to XXXX, digital softness Joe. of you and of in me and which up improvements expenses X.X% another saw SOI year-over-year, morning. XX.X%. double-digit both reduce we EBITDA digital, X.X% delivered expenses us operating a Marie while where XX.X% with successful in These reflecting down yet both XXXX permanently and continued growth we and I'm quarter to quarter results. present revenue, for significant reduce thank proactive X.X%.

and this and local in relatively market on was agency being softness with local direct down X%, quarter a flat. of side spot the There with local remains result quarters, National was the soft As was down recent market for local challenged XX%. also the a

year-over-year Looking revenue did second of not at had 'XX approximately well X political agency company-wide $XXX,XXX Tampa the in more quarter commission. quarter closely net comp, events 'XX as market, of our in as which return second

from those and been our previous year, events Excluding political flat revenue would the have revenue year-over-year.

betting That's for Now the revenue up quarter. the prior moving represented million and betting to the sports sports recorded We quarter. X.X% category. from in of year, X.X% $X.X total the

the this betting in spending versus $XXX,XXX surge came in second Our quarter. Boston, quarter a growth prior in $X.X in generated from year million sports which

in Celtics quarters Boston the combined sports expect Bruins in quarter. both We in sports betting betting third $X.X to and new begin we million Patriots, and Detroit Philly fourth Elsewhere, remain of season. strong during recorded revenue as and

in digital our quarter quarter of revenue. revenue success of from as quarter again second high Now up That's ago the this the first logged represented XX.X% XX.X%, XX.X% digital of grew ongoing second XX.X% total was in the year. from transformation year in and and up this

owned and our assets, increase, us. content margin revenue larger driving from creation operated a for the profit has X, the this following: can digital primarily which Our higher number comes with and

a is and, [SEM, began and comes X, SEO,] is course, selling services, of And primarily we which number digital late Facebook which with number year. Third-party X, Google cost. Web higher last

platform been and clients. over-the-air campaigns deliver and able digital to brand has for combine team offerings sales to solutions our work that marketing talented Our our

of revenue few strong this XX% bottom basis of digital to our to up of reaching points within total XX% continued a revenue moved goal growth for Our digital year. the end has accounting of

our reducing reduced X%. We we to of debt going was at on below trend. cautious a our strong declined of June, debt. point should were XX%. focused more par to outlook, repurchase quarter. was trading note, and X.X% second to continuing leverage bit to year-over-year. market when down hyper as revenue and increased million flat, bonds our challenging, same-station X% we're was by SOI conditions April reducing With down down somewhat quarter's by determine to $X grow and going our And and continue and May the remain a the advantage almost monitor took the we expenses EBITDA a end bonds X.X% And our which forward. results Same-station same-station down breaking revenue Now was

going With has who additional that, comments the it Marie, to to I'm over on hand quarter.

Marie Tedesco

provide Carolyn, and an review quarter our update and everyone. balance second good will our I of results sheet. Thanks, morning,

or revenue Second million, our X.X% esports from $XXX,XXX includes quarter which net $XX.X decreased $X.X to million team.

events revenue Myers. Excluding mid- to year-over-year. high of nonrecurring been markets, growth Fort revenue our Vegas $XXX,XXX $XXX,XXX, growth flat double-digit X of of and political have in would decrease growth generated our two, Las We in and Boston, Wilmington including Charlotte, and positive in revenue a single-digit

now for XX.X% this diversify revenue XX.X% of revenue and $XX.X as grow and to quarter to sources. revenue represent the continue grew the stream we quarter million Digital for our revenue total

second to at total category declined This our our the Consumer category revenue. year-over-year quarter. [X.X%] for remained of our quarter. services XX% Moving revenue during category largest revenue

medical. largest from largest have increase legal We the and decrease coming from the coming

XX% was which for second category and Our year-over-year X.X% total largest accounted of retail, revenue. fell

year-over-year. quarter. which an around growth of in for betting, represents X.X% than increases sports of almost growth more decreased total and and XQ double-digit of fourth category saw the million Philadelphia. revenues year-over-year, X% category up our XX% $X.X Boston our revenue. revenue in including markets, We half saw auto in Auto, category X% generated entertainment largest includes for Entertainment number The XX% total X the accounted in and

that, seen continue year this and inventory improvements throughout improve have the as that vehicles. of of revenue to in on will We expect have reports there been millions category levels

The to decrease Corporate Telecom representing wage same decrease or year is revenue. quarter million. for X.X%, expenses G&A the And down sixth $X.X X.X% expense. of year-over-year X.X% was the a corporate compared in decreased to in spot total to $XXX,XXX a related quarter G&A ago

decreased $XXX,XXX. in compensation to $XXX,XXX $XXX,XXX tax the we and [XX%] had stock-based income or an the quarter, quarter benefit for Noncash of

or $XX,XXX impairment the year decreased loss $X.X XQ negative less negative a million, income million with more Second operating loss million. operating was 'XX of to impairment a and noncash in XQ line quarter noncash $XX income a ago. The of in in by driven XXXX XXXX $X.X

periods. noncash were So basis on both positive losses, excluding the impairment in we an operating

the Second quarter bond of $X was interest reflecting at approximately expense repurchase of and million, XX%. million XQ at million, our a debt decreased a $XXX,XXX to $X.X year-over-year outstanding $XXX end discount

August $XX.X We also interest on million X. made payment approximately of another

to net agency leverage, including previous LTM or such buildup, adjusted decreased was Second compensation, $X.X million. forma quarter as XXXX XX.X% from pro up XXXX quarter our EBITDA the and taxes, forma from to for add-backs noncash XXXX acquisition risk $X.X agency certain X.XXx. our pro digital million year losses

build are We as operations to ended cash XQ cash and $XX.X of XXXX continuing we generating our with from million on cash. up hand

free We generate flow expect full to the for XXXX. positive cash year of

Our the us flow to debt, which current our derisks interest cash to reduce allow equity. our our cash focused this expense, and and flexibility will balance increases we leverage opportunistically on hyper free continue as are

was that to XQ to compares the $XXX,XXX, million, and of upgrades XXXX for which expenditures XXXX replacements which related spend Boston was transmitters. to year-to-date is Boston $X.X related our Year-to-date $X.X to million, capital compares build-out. of again, CapEx That build-out. was million, the spend and reflecting CapEx of mostly Our quarter $X

spending expect around full to We to year. be CapEx our million $X for for million XXXX $X the

back And that, to with turn it I'll Caroline.

Caroline Beasley

Thank you, Marie.

some I'm we've quarter where performance with had our So headwinds. pleased second in environment an

offsetting business, digital to show in partially spot. growth continue the our We decline in

for content quarter. drive the strategy midyear revenue XX.X% helped digital Our initiated in our XXXX growth

operated we're drive during in XXXX. about So this That to second tremendous opportunity our and audience owned monthly growth overall strategy very our Notably, the of is Again, quarter, this the year. into and almost to last as we XX% reach a balance and in $XX continue monthly now year. next content the continued 'XX audience is local from million same multi-platform audience excited $XX increase compares through million. period

large share other broadcasters. our key X% cluster markets radio XX-XX. with of X% And maintain maintained where and PPM in year-over-year PPM grew Our including continue [indiscernible] to overall, the the market with when positions average to share And our both by by PPM demographic average highest brands in compared markets, dominant grew adults the major our share Nielsen, we adults XX-XX.

seen of period. now quarter, to Digital impressions However, increase was XX% like recent growth up users on O&O for other growth digital total asset That's expect sellable accounts 'XX. continue. a from last to QX increasing largest of 'XX with X the monthly to points trend this and unique our audience. audience QX led our audience XX% the we for same digital quarters, XX% from This by

second set half the the X have Now We in ranked with League the to X esports. now the moving X which Toronto. October We played on team playoffs moved the in Overwatch finals, into have presently now on through XXXX our will grand eyes be and number of world. October season,

prize Our focus platform audience on for on money. remains our computing expanding and social our

a sheet, into remain growing further on strong expansion, balance and into maintaining free flexible reducing of goals and driving improving looking maximizing quarter and and flow. margins, Now our third half leverage debt, back the revenue net our our revenue 'XX, audience cash diversification,

approximately where June August and pretty is down, today, end. that saw X%. and September X% of That's down July is X%. quarter revenue was As third pacing breaking is X% approximately down up to pacing pacing our down similar we

Now that last last of net we year, with political this half revenues, recorded book of year. million as $X of date approximately

September X%. July pacing So down excluding X% currently with the we're political, down up and for pacing quarter, August X%, X% down

be the business offset to digital softness continue super local and developing new in comp. to the We focused on political direct

against are value. over several proud members I'd going the like with the acknowledge we our team everything strengthen we and as pursue results before headwinds. last delivered clearly a of to company and And shareholder thrilled we strong for quarters, additional to the across them Q&A, have opportunities lot I'm into absolutely we company as even Finally, are done the build they've accomplished doing.

to with do to were to Marie. over I'm some turn it So going have that questions We that, submitted us.

go do to through those want questions? you So Marie,

Marie Tedesco

on will we to would said, is, And I an address. as investment? question update received Carolyn Yes, few you questions esports your the could like we a do give that first

Caroline Beasley

Sure.

dollars, as make we with building to this on area I overall in mentioned winning the focus our esports, price continue and in audience earlier also So script. a and progress

some questions all looking sometime you fourth there League, Overwatch of with However, quarter are we some have should options we may the with this. and our are and [OL] update of have an on currently at read, in

Marie Tedesco

on focused could you are -- our we talk next we I our to in are day, due this bonds refinancing reduce the continuing will eye coming XXXX. of of leverage. have And about your certainly February Also and yes, on we are And hyper Great. your that and that. reduce question, debt process take our

We consider exploring is, options noncore will last well our regarding refinance And would bonds be all divesting of assets? you question due our date. the advance in

Caroline Beasley

last quarter, Yes. We consider and that discussed that is this we something doing. will

Caroline Beasley

have very out reach Great. to free you a All your right. have to either you day. myself. And much time any Hope Thank Thank all questions, feel today. great or you. should for you Marie

Beasley Broadcast (BBGI) 3 Aug 232023 Q2 Earnings call transcript