Beasley Second Quarter Revenue Up, Net Income Down After CBS Swap
August 7, 2015 at 4:24 AM (PT)
BEASLEY BROADCAST GROUP second quarter net revenue rose from $25.9 million to $27 million on a comparable (combined continuing and discontinued operations) basis, with net income falling from $3 million to $2.5 million (13 to 11 cents/diluted share). Pro forma revenue fell 6%. The company's numbers reflect the swap of five stations in PHILADELPHIA and MIAMI to CBS RADIO for 14 stations in TAMPA, CHARLOTTE, and PHILADELPHIA.
Chairman/CEO GEORGE G. BEASLEY said, “Our reported second quarter results reflect a continuation of recent overall industry and market trends. On a pro forma basis, second quarter net revenue decreased 6.0% while SOI declined 8.4%. The decline in pro forma revenue is primarily attributable to overall weakness in CHARLOTTE, LAS VEGAS and WILMINGTON which resulted in reduced operating leverage and ultimately impacted SOI. However we were able to partially offset the revenue decline through cost reductions that resulted in a 4.9% or $1.0 million reduction in station operating expenses.
“We also made further progress on our debt reduction efforts during the quarter, while continuing our commitment to return capital to shareholders. During the second quarter we made credit facility repayments totaling $3.0 million, reduced borrowings to $93.2 million at JUNE 30, 2015 and declared our seventh consecutive quarterly cash dividend.
“The station exchange completed in late 2014 substantially broadened and diversified our local radio and marketing solutions platform. Since closing, we have been initiating strategies to extract operating and financial synergies from this exchange. We are actively implementing integration, cost efficiency and operating plans while remaining true to our value proposition by focusing on targeted localism and delivering quality programming, effective online marketing solutions and dedicated service to listeners and advertisers in these markets.
“Looking forward, we remain focused on operating our station clusters to match or exceed their market’s revenue performance while further strengthening our balance sheet. We believe our integration, programming, personnel, cost-efficiency and operating changes are now showing progress and are expected to benefit future periods’ results which will support our goals for growth and the enhancement of shareholder value.”