Beasley Q2 Revenue Down, Income Up
July 31, 2008 at 5:29 AM (PT)
BEASLEY BROADCAST GROUP second quarter net revenue dropped 10.9% to $31 million, but net income rose 12.4% to $2.4 million (10 cents/diluted share). The revenue drop was attributed to a decline in MIAMI-FORT LAUDERDALE based on losing FLORIDA MARLINS baseball to crosstown LINCOLN FINANCIAL Sports WAXY-A and other revenue declines in MIAMI, LAS VEGAS, FORT MYERS-NAPLES, and GREENVILLE-NEW BERN, offsetting increases in PHILADELPHIA and AUGUSTA and from the interactive division.
Chairman and CEO GEORGE G. BEASLEY said, "The second quarter was a challenging period for radio broadcasters and BEASLEY as local, regional and national economic factors weighed on advertiser activity. For example, our results in MIAMI, LAS VEGAS, and FORT MYERS-NAPLES were impacted by severe downturns in local real estate markets. In addition, our MIAMI results reflect comparisons with the year-ago period that included net revenue from broadcasting the FLORIDA MARLINS baseball games on our Sports Talk station. Quarterly bright spots include our market out performance and revenue gains at our PHILADELPHIA and AUGUSTA market clusters and the continued traction we are building with our interactive initiative which generated approximately $1.4 million of high-margin revenue, representing an approximate 33% increase over levels achieved in the same period last year.
"Notwithstanding the current environment, our station and corporate personnel did an excellent job during the quarter in terms of expense management and applying cash from operations to the reduction of debt. Reflecting this focus, net income for the quarter rose 12.4% over year-ago levels and total debt fell to approximately $181.6 million at June 30, 2008 from approximately $191.1 million at December 31, 2007.
"Looking forward, with personnel and programming changes in place in various clusters, we remain focused on our long-term goal of out-performing the markets in which we operate and we continue to manage the Company for revenue growth from our core operations as well as from interactive and HD Radio(TM) while also seeking margin growth through prudent expense management."