Beasley Financials Detail 5% Decline In Revenue, Explain Swap With CBS Radio
October 24, 2014 at 4:32 AM (PT)
BEASLEY BROADCAST GROUP has announced operating results for the three and nine month periods ended SEPTEMBER 30th, 2014.
The company reports the $0.7 million, or 5.0%, year-over-year decline in net revenue during the three months ended SEPTEMBER 30th, 2014, "primarily reflects lower advertising revenue at the Company's WILMINGTON and GREENVILLE-NEW BERN-JACKSONVILLE market clusters which more than offset net revenue increases at the Company's LAS VEGAS and FT. MYERS market clusters.
Station operating expenses in the 2014 third quarter increased by $0.2 million, or 1.8%, which coupled with the revenue decline resulted in a $0.8 million, or 18.9%, decline in third quarter 2014 station operating income to $3.6 million compared to the 2013 third quarter.
Commenting on the results, Chairman/CEO GEORGE G. BEASLEY said, "We don't believe third-quarter operating results from continuing operations reflect the strength, ratings and local relevance of our platform, as the lower level of reported net revenue from continuing operations is temporarily mis-matched with certain expenses that will be better amortized across the Company's larger revenue base once we complete the asset exchange with CBS RADIO.
On OCTOBER 1st, the Company entered into an Asset Exchange Agreement with CBS RADIO whereby BEASLEY will exchange a total of five radio stations in the PHILADELPHIA and MIAMI-FORT LAUDERDALE markets for a total of 14 CBS RADIO stations in the TAMPA-ST. PETERSBURG, CHARLOTTE and PHILADELPHIA markets. BEASLEY notes, "As a result of the proposed transaction, the Company is required to report the stations that CBS RADIO will assume ownership of as 'discontinued operations' on its income statement and as 'assets held for sale' on its balance sheet. The reporting for discontinued operations includes net revenue, station operating expenses, depreciation and amortization, and attributable income taxes from the five radio stations. The assets held for sale include property and equipment, FCC licenses, and goodwill from the five radio stations. The table below summarizes the results of continuing and discontinued operations for the three and nine month periods ended SEPTEMBER 30th, 2014 and 2013."
"We are very excited by the potential presented by the CBS transaction as we will exchange five stations in PHILADELPHIA and MIAMI for fourteen stations in TAMPA-ST. PETERSBURG, CHARLOTTE and PHILADELPHIA," said BEASLEY. "Throughout BEASLEY BROADCAST GROUP's 53-year history, we have actively managed our station portfolio with the goal of serving the local communities where we operate, diversifying our operations, managing risk and improving financial results. The planned asset exchange with CBS RADIO addresses these strategic objectives and upon completion, we will expand our owned and operated station base by nine stations increasing BEASLEY's portfolio to 53, including 33 FM and 20 AM stations, in twelve markets with approximately 7.7 million weekly listeners. Importantly, we will add completed clusters in the TAMPA and CHARLOTTE markets which complement our already strong mid-ATLANTIC presence."