Beasley Q4 Revenues Fall 14.1%
Expense Cuts Put Net Income In The Black
March 5, 2010 at 12:07 PM (PT)
BEASLEY BROADCAST GROUP fourth-quarter revenue fell 14.1% to $26.2 million, blamed on lower ad revenue and the loss of political advertising, but thanks to "expense management," net income increased from a loss of $36.5 million to a gain of $1.4 million (loss of $1.58 to gain of 6 cents/diluted share). The 2008 figure includes a non-cash, pre-tax impairment charge of $62.5 million from impairment of FCC licenses and goodwill.
Chairman/CEO GEORGE G. BEASLEY said, "BEASLEY's revenue comparisons improved in the second half of 2009 and when excluding political advertising in last year's fourth quarter, 2009 fourth quarter same-station net revenue was down approximately 8%, the Company's best comparison since early 2008. Key BEASLEY clusters in PHILADELPHIA, LAS VEGAS and AUGUSTA continued to show progress in the fourth quarter as revenue from these clusters was down low single-digits. The Company also continued to drive strong interactive revenue growth with fourth-quarter revenue from these sources rising approximately 16% from 2008 fourth-quarter levels.
"Our focus on expense management enabled the Company to generate fourth quarter SOI growth in six of our eleven clusters. By managing the areas of our operating and financial structure that we can directly control BEASLEY BROADCAST GROUP recorded bottom line profitability in every quarter of 2009. In addition, reflecting our focus on debt-reduction, total bank debt was $151.8 million at the end of 2009 down from $174.5 million at DECEMBER 31st, 2008.
"It is evident from the fourth quarter results that advertising activity in our markets is slowly picking up and as it does, BEASLEY BROADCAST GROUP is well positioned to participate in the upturn on both the top and bottom line. Looking forward, we remain focused on maintaining a streamlined cost and operating structure to ensure that we participate in increases in radio advertising spending as they occur as well as expected higher levels of political spending and growth from our digital initiatives in 2010."