BBGI - Earnings call transcript Q2 2024 | Beasley Broadcast Group, Inc.

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Operator

Good morning, and welcome to Beasley Broadcast Group's Second Quarter 2024 Earnings 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 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 5 days on the company's website at 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 Please time, the At over conference go to ahead. your CEO, Group's turn Beasley Caroline Beasley. host, I

Caroline Beasley

our Good is review with morning. quarter you, me us Rob. you joining Tedesco, everyone, this morning, Thank results. thank Marie and for to second CFO our

at every the [indiscernible] So our time the reported WJBR actual consistent we revenue down an with quarter with across the divestiture basis, on QX down adjusting was second continued our X.X%. provided softness was just [indiscernible] pacings businesses, and and revenue for And total we same-station Outlaw. X%, the

content an second grew Now digital revenue XX.X%. and impressive same-station reflecting continued our reach, on our quarter by focus leveraging and local monetizing

Our in digital revenue now up 'XX. XX.X% of with and quarter quarter XX.X% accounting second second from from 'XX for it that's mix total up in revenue, toward second XX.X% continues shift quarter and

For this digital for and between growth continued our the XX% and digital to offerings. our revenue, and total XXXX, account of success of our driven creation full capability XX% by of content and expect service is we year

to strong to continue our such, intend solutions clients. a advertising we to by As to broad local and offering digital leverage sales relationships expand content force our brands, range of

revenue, includes the XX%. political this quarter during $XXX,XXX as political by revenue second for net QX, exceeding budget was spot quarter generated bright traditional and political and our Another in both digital, we

half XXXX in well with a off markets our revenue so political, as to start several in strong positioned to second of political of second quarter we're This expect states. compares and robust we swing XXXX, $XXX,XXX a in are of

the X.X% of signs for on political. And increased and up actual ex stabilizing same-station X.X% show and X.X% political. national basis, in year-over-year national quarter ex up an with X.X% national QX Now

political. ex this our XX.X% total revenue, national is total, of now accounts for In and

down performance even further. breaking second Now our quarter revenue

the XX% for local a spot down XX.X% decline total direct driven was of was million local X.X% down $X.X XX.X% or business and or we This agency local continue X% in as year, accounts shift to decline was $X.X Local local direct. business local a agency currently Over our million. in to and from same-station by direct.

that on quarter. I many last Main softness in of the have think and peers further the decline our we've supports Street business that seen for us discussed local the

costs. $X added Our operating this includes expenses in or X.X% the declined and in million million, quarter severance an $X.X

increase to costs, increased and the SOI the $X.X expenses costs, esports on and severance EBITDA $X.X second to WJBR, expenses have were were million, the by Excluding in same-station And severance XX.X% a would to basis, onetime SOI quarter. down $XXX,XXX $XX.X highlight to And increased a in million. million, in same-station $XX.X operating our which resulted million. adjusted million $X.X X, down $XX,XXX

to Now and detail quarter. I'm further it you going give to to turn going second she's over in Marie,

Marie Tedesco

Thanks, and everyone. morning, good Caroline,

in outlaws somewhat offset to overall revenue. drivers was Wilmington continued Myers, which Fort our digital decline second Fayetteville, did related the revenues, the The political business, mentioned, and second quarter decline and Jersey agency $XX.X spot the New Augusta, million, of elimination was and local As divested total Caroline was Tampa of including quarter direct. year station, main X in revenue in-house of the by markets, revenue prior digital growth and exceeded net our Charlotte, as the

Operating X% and divested the X.X%, or X.X% was a for esports, quarter Wilmington Looking same-station resulting same-station the basis, quarter. up and June April station year-over-year decline X.X% closer May the year-over-year, the X.X% at for divestiture a decreased excluding declined expense by quarter dropped station May nonrecurring on expenses revenue of The somewhat $X with costs. our year-over-year offset to the and headcount along to $X.X XXXX severance elimination million the decline primarily the $X our and SOI million. Wilmington a $XX.X million reduction declined esports due million, of was in team,

increased or X% $XXX,XXX the costs, the Excluding quarter. for severance onetime SOI

dropped by severance increased quarter. increased offset the costs, driven million. for Same quarter $XX,XXX costs by SOI onetime same-station the the for by Consequently, declined headcount expenses expenses. to million excluding station And reduction, and same-station $X.X $XX,XXX $XX.X SOI third-party the severance

a largest at revenue X% year-over-year. remained services category the total our Now revenue for our XX.X% revenue quarter. Consumer with looking decline of at categories of

quarter, revenue, of increase was came partially second the to increased XX.X% in in mostly a The betting the revenue offset and from ended from X.X% sports for betting Entertainment, falling place, decline Detroit in year-over-year, sports up revenue. representing XX.X% Boston from Charlotte by total X.X% Philadelphia. Jersey. quarter, #X, Retail accounting in New entertainment and largest related

our was of In drop and revenue. we represented total auto to of XX% a spend, total revenue. accounted quarter drop. the sports $X.X for decline betting auto recorded category, The in was the million primarily of X.X% in for accounted quarter, the down This XX.X% second and that year-over-year domestic due X.X% which category

And fifth X.X% $XXX,XXX. at quarter, corporate a decreased G&A ago expenses Corporate same total or Consumer the expenses year-to-date, or in of XX.X%. came XX.X% year X% place compared quarter $XXX,XXX up products the declined to $X.X revenue to for million.

our mostly year-over-year an related of in corporate compensation to quarter allocation corporate and in to expenses digital is second a market. decrease The G&A reduction

stock-based we quarter XXXX. Noncash to taxes increased compensation for to income and $XXX,XXX year-to-date increased paid $XXX,XXX $XXX,XXX and $XX,XXX year-to-date, the $XX,XXX in

increased from prior the year positive or a million months X million, to second million Second prior both impairment $X.X $X.X $X.X a X million. of and XXX% loss and an quarter a million, negative quarter included to $X.X operating $X.X income negative income year positive $X.X a XXXX $XX million increased million months from operating for

to our reductions ago, our million million payment and We XXXX. original $XXX,XXX decreased debt a the from down expense semiannual our and latest debt on we million the compared total at decreased of made XXXX. same interest X, Interest with beginning year-over-year of period debt $XXX $XXX XXXX, year-to-date million, year quarter August to reflecting throughout $X.X ended $X.X the

of EBITDA, of million meaning $X.X the quarter Adjusted was back stock-based ended $XX.X of that's year-to-date. million quarter XXXX. hand expense cash We noncash first $X.X million, million $XXX,XXX compensation $XX.X $X.X the at and up severance and end for adding with and the onetime of quarter from on million

Our the year $X capital expense CapEx years of for the at remains $X in quarter was quarter compared $XXX,XXX. spend both million. second to million prior Year-to-date same

in year the the expect at CapEx full to of Looking our million. range XXXX, $X annual million $X spend we

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

Caroline Beasley

Thank us. $X.X segment the to our digital a report of you, growth happy that for XX% and for a priority strategic margin Marie. SOI I'm of quarter. Digital revenue million remains reported

July transferred evolve to Direct. we we business In we and decided As this close reduce announce label Guaranty large drive agency look our to we efficiencies a eliminated our to Digital portion successfully so, I'm and their effective the that digital agency to revenue of GD pleased already XX% operating and doing XX. expenses, Digital of expenses, white in-house

to bottom This $X reorganization about is by expected million. line our increase

we to profitability contradicts esports initiative, its [ our reducing Additionally, focus exit content our on monthly decided hyper leverage. past ]

market delivering strategy strong Our share impressions. digital consistently and is results dominant multi-platform content

including followers our side, by social the Facebook, social our and months. over to our been revenue opportunities focus our digital platforms, X audiences the media monetizing leading show past connecting and media platform, On increase addition, YouTube, our media growing nearly maximize social pages monetizable in management Instagram, million and X X and our has

And doors around partnerships of while social our more station strategy accounts, new reach these has we engagement will predominantly revolved believe and open for audiences.

continue marketing to really this revenue digital follow. pleased to announce that to the Nielsen PPM our dominant I'm expertise as digital revenue And the finally, player large to continue with us to we We build remain a on our extensive company. head we behalf of on of in marketing help with most new And side growth traditional markets. we hired ratings, expect streams in content Audio the of

Philadelphia Boston, in #X station have Vegas Detroit, the top-rated Boston, Charlotte, adults in and key and the with have currently and Las Las cluster Charlotte, Philadelphia rated XX-XX. Vegas We

to slightly down. mid-single with down third September as of low August ending quarter. and pacing are Now they Pacings moving up in today, to digits July on

our environment, XXXX the This revenue, streamlining free ahead and growth, current business and management. remaining revenue traditional old emphasis a structure imperative, streams, we've focused local developed corporate our considering of via most plan new flow digital cash combination revenue digital a strategic expanding maturity. our on laser economic expense capital includes of with quarter Now first and focused addressing leverage, on the on

nearly last annualized $XX we As million in which to an executed we projected call, initiative May, in a is reduction on mentioned amount to expense basis. our million $X.X

voluntary early Also, and These headcount traffic employees, among which other offer. full-time reductions reductions a we and streamlining earlier been strategic totaling the month, achieved of X.X% operations production reductions. of another G&A consolidation out includes this rolled on services combination have retirement through

part employees these of be accept backfilling we to this offer, most as our effort not greater our streamline of As will processes. positions

reducing sales headcount our However, department. we in have not been

Instead, technical the we specialists both adding are and traditional digital on sales side.

last active a regional markets we across our streamlining organization oversee further processes. efficiencies markets structure. thus, the VP across regions, These realize week, already multiple to managers in Additionally, new introduced will our now existing operational

And forward, in driven strong we prospects sector. of the in by this So political and looking anticipated optimistic remain the spend digital is expansion growth second continued half about 'XX. the

to to So everything across focus have done with for team thank like that they I'd the doing company are our members that, and forward.

have I few a that Marie, submitted. do So with that, questions think we were

Marie Tedesco

we questions were addressed a our in this that address couple most point. Yes. Thanks, we at have received them Caroline. do will we Well, remarks, of

discussions February maturity. one, view our the So first in the about XXXX creditors bond with any

Caroline Beasley

addressing term. quarter details of on say about this on and come So I have can is what first will that are near 'XX our that we laser-focused maturity, that more we

Marie Tedesco

The be assets that question are sold? we more is, received Great. could there next

Caroline Beasley

assets selling deleveraging are We to attractive open an and at price.

Marie Tedesco

far $XX realized cost And I realize of the in are program you? the will that. you savings you -- Do Great. cost quarter, million $X into take how question, last improvements the million

$X.X and our the in we the would Outlaws, the dropped onetime digital expenses, expenses increased digital WJBR flattish, remarks, from of and the million. same-station $X.X increased back of as excluding adding revenue, were approximately So severance reviewed prepared have expenses million our divestiture

Now occurred of month expense reductions our May. the in second quarter

So savings that question. the not the second we in did the benefit quarter And of see the concludes full additional quarter.

Caroline Beasley

free you or to We feel your company. and attending in All really All any right. you questions, the call to appreciate you all. should myself. interest reach Thank Marie right. out please And have our

Operator

Thank you. conclude This will conference. today's

disconnect at a your participation. may you for this wonderful lines day. thank time. your Have We You

Beasley Broadcast (BBGI) 12 Aug 242024 Q2 Earnings call transcript