Beasley Reports Fourth Quarter Results As CBS Swap Kicks In
March 6, 2015 at 4:18 AM (PT)
BEASLEY BROADCAST GROUP reports that fourth quarter net revenue from continuing operations rose 23.5% from $15 million to $18.6 million, with net income up from $800,000 to $1.8 million (4 to 8 cents/diluted share). The company's swap of stations in PHILADELPHIA and MIAMI to CBS RADIO for stations in TAMPA and CHARLOTTE, and one AM in PHILADELPHIA closed on DECEMBER 1st; the company reported the PHILADELPHIA and MIAMI stations now with CBS separately as "discontinued operations." Pro forma revenue fell 4.3% to $28.9 million. Same station revenue dipped from $15,027,736 to $14,432,997/
Chairman and Chief Executive Officer GEORGE G. BEASLEY said, "On a reported basis, fourth quarter net revenue from continuing operations rose 23.5% and SOI increased 14.6%, while operating income of $1.8 million was impacted by $1.7 million of transaction and termination expenses related to the Asset Exchange and otherwise would have compared favorably with the $2.8 million in the comparable year ago period.
"However, given the required accounting treatment for discontinued operations, the results include only one month of operations from the stations we received in the asset exchange, while excluding the results of the stations we gave up in the transaction. As a result, we believe a pro forma presentation, which assumes the asset exchange occurred on January 1, 2013, better reflects the operating results. On a pro forma basis, fourth quarter net revenue decreased 4.3% to $28.9 million while SOI declined 8.0% to $9.2 million. Importantly, while the fourth quarter pro forma presentation allows for a comparison of the same stations during both periods, it does not reflect our recently initiated and planned format and personnel changes in TAMPA as well as expense reductions in TAMPA and CHARLOTTE, the benefits of which we expect will be reflected in our results as we move through 2015 and into 2016.
"With respect to the new markets we now operate in, TAMPA-ST. PETERSBURG is the nation's 18th largest radio market when ranked by revenue while CHARLOTTE is the nation's 24th largest radio revenue market. The six station cluster we now operate in TAMPA-ST. PETERSBURG is already competitive on a revenue share basis, and we have initiated several strategies to capitalize on the significant upside in this cluster. We've already changed the format of one station from sports talk to rock and anchored the station with the market's leading morning show personality (BUBBA THE LOVE SPONGE). We've made other changes in TAMPA including transferring two proven Beasley managers to lead our operations in the market and appointing a new Director of Sales for the cluster who brings long-term radio and digital experience to his role in TAMPA.
"The seven station cluster we acquired in CHARLOTTE is a market revenue share leader, so our strategies in this market to drive SOI growth are focused on extending successes and driving efficiencies in operations and processes. Overall, our post-closing integration, cost-efficiency and operating plans in both markets, combined with our legacy focus on targeted localism and delivering quality programming, effective online marketing solutions and dedicated service to the listeners and advertisers in these markets are proceeding on schedule.
"In addition to our initiatives during the quarter to expand and diversify our station and digital media operations, we continue to focus on debt reduction and returning capital to shareholders. During the fourth quarter we made credit facility repayments totaling $1.3 million, reducing borrowings to $97.7 million at December 31, 2014 and declared our fifth consecutive quarterly cash dividend.
"Looking forward, we are focused on ensuring that our station clusters match or exceed their market's revenue performance while further strengthening our balance sheet. We are actively executing post-closing integration, programming, personnel, cost-efficiency and operating plans and results to date are tracking with our expectations. Our operating initiatives continue to focus on targeted localism and delivering quality programming, effective online marketing solutions and dedicated service to the listeners and advertisers in our markets. These strategies have created long-term value for BEASLEY BROADCAST GROUP and we are confident that the application of our operating and programming disciplines combined with our commitment to build strong community involvement in our markets will support our goals for growth and the enhancement of shareholder value."