Beasley Revenues Rise In Q3
October 26, 2012 at 4:28 AM (PT)
BEASLEY BROADCAST GROUP third-quarter net revenue rose 3.1% to $24.7 million, primarily attributed to the addition of KOAS/LAS VEGAS and strength in the LAS VEGAS, COASTAL CAROLINA and AUGUSTA markets. Net income fell 50.7% to $1.2 million (5 cents/diluted share), but 2012's figures included a $2.6 million pre-tax charge for extinguishment of long-term debt, without which net income would have risen. Operating income rose 9.1% to $9 million.
Chairman/CEO GEORGE G. BEASLEY said, "The third quarter was an active and productive period for BEASLEY BROADCAST GROUP. In addition to generating a 3.1% rise in net revenue which drove another period of SOI growth, we completed the strategic acquisition of KOAS in LAS VEGAS and refinanced our senior secured credit facilities with terms that provide extended maturities and additional flexibility including the ability to return capital to shareholders.
"Our third-quarter revenue growth principally reflects strength in our LAS VEGAS, COASTAL CAROLINA, and AUGUSTA market clusters, the cyclical benefit of political advertising and very strong year over year growth in the automotive advertising category. The revenue growth combined with the Company's streamlined operating structure and ongoing expense management initiatives resulted in the 9.1% rise in 2012 third quarter SOI. Reflecting the operating leverage in our model, on an actual basis, third-quarter SOI margins rose to 36.3% up from 34.3% in the same quarter last year.
"During the quarter we completed the acquisition of KOAS in LAS VEGAS for $4.5 million. KOAS marks our fourth owned station in the market and we manage and have an option to purchase a fifth station in the market. Overall, our LAS VEGAS market ratings improved significantly this year and KOAS has performed well since it was acquired. Throughout the organization, our focus on core programming is delivering ratings strength in many markets and we continue to converge our on-air and digital advertising platforms. In doing so, we are effectively enhancing the listener and user experience while delivering more diversified and effective marketing solutions to our advertising clients.
"On AUGUST 9th, we entered into new credit agreements with a syndicate of financial institutions for a $110.0 million first lien facility, comprised of a $20.0 million revolving credit facility and a $90.0 million term loan, and a $25.0 million second lien facility comprised of a term loan. Proceeds from the new credit facilities were primarily used to repay the outstanding balance on the prior credit facility which was $120.2 million. During the quarter we continued to strengthen our balance sheet and capital structure as we made repayments totaling $1.3 million against our debt which was reduced to $119 million at quarter end which compares to $133 million at the end of last year's third quarter. We ended the third quarter with our lowest leverage ratio in over ten years and remain committed to using cash from operations to further lower debt and other initiatives which can enhance shareholder value. While borrowing costs are higher under our new credit facilities, we intend to remain active in lowering overall debt levels and believe the extended maturities, certainty and the option to again return capital to shareholders offset the higher cost of capital."