Beasley Q1 Revs Drop 23.2%
May 6, 2009 at 4:49 AM (PT)
BEASLEY BROADCASTING GROUP first-quarter net revenue took a 23.2% plummet to $22.564 million, sending net income falling from $1.187 million to $8,000 (5 to 9 cents/diluted share). The drop in revenue was attributed to declines in MIAMI-FORT LAUDERDALE, PHILADELPHIA and LAS VEGAS.
Chairman/CEO GEORGE G. BEASLEY said, "The economic recession and its impact on advertising spending, the radio industry, and BEASLEY BROADCASTING GROUP resulted in a significant decline in first-quarter revenue. In the face of this environment, we believe that our profitable first-quarter results highlight the benefits our vigilance in managing costs and our balance sheet. However, the revenue decline incurred during the period outpaced the benefits of company-wide cost containment programs resulting in a loss of operating leverage, which impacted SOI, operating income and net income comparisons.
"Throughout the first quarter we managed for the environment and profitability as we addressed those areas of our operating and financial structure which are in our control. Specifically, we further built our interactive business, strengthened our national sales representation, added network affiliations at select stations, contained costs at the station and corporate levels and lowered the Company's outstanding bank debt while increasing cash and cash equivalents from 2008 year end levels.
"Reflecting this focus, first-quarter interactive and off-air initiatives revenue grew by 3% year-over-year to $1.3 million from the first quarter of 2008. The 18% reduction in total cost and expenses in the 2009 first quarter reflects cost containment programs at the station and corporate levels including a headcount reduction of approximately 15% at the end of the 2009 first quarter compared with year ago levels and a partial quarter benefit of a company-wide salary reduction of 5% which began during the quarter.
"While the current economy has emerged as a strong headwind for all businesses, we expect that our ongoing approach to actively managing our station portfolio, balance sheet and capital structure, practicing prudent expense management and developing new revenue streams will serve the Company well when the economy and industry rebounds."