Beasley Revenues Off 3.2% For Q1
April 30, 2010 at 4:35 AM (PT)
BEASLEY BROADCAST GROUP first-quarter revenue fell 3.2% year-to-year to $21.8 million, with the drop blamed on drops at the MIAMI-FORT LAUDERDALE and FAYETTEVILLE clusters. The company said that five of its clusters saw revenue increases, offset by declines in four others.
The company's net income rose from zero to $500,000 (2 cents/diluted share).
Chairman/CEO GEORGE G. BEASLEY said, "Increases in 2010 first quarter SOI, operating income and net income highlight the value of the Company's streamlined cost structure. Overall, the radio industry and BEASLEY BROADCAST GROUP have begun to see a rebound in advertising spending. In the 2010 first quarter we generated monthly sequential improvements in revenue, with MARCH representing the first month in over two years that BEASLEY BROADCAST GROUP recorded revenue growth. Reflecting our close watch on station and corporate expenses, the Company generated first quarter year-over-year SOI growth of 13% with margins increasing to 28% for the 2010 first quarter, up from 24% in the comparable period last year. The Company also continues to drive strong interactive revenue growth with revenue from these sources rising approximately 22% in the 2010 first quarter compared with 2009 first-quarter levels.
"While key BEASLEY clusters in PHILADELPHIA, LAS VEGAS, AUGUSTA and COASTAL CAROLINAS grew revenue in the quarter relative to the same period in 2009, there remains significant upside in MIAMI, PHILADELPHIA and FORT MYERS-NAPLES as our clusters in these markets under-performed relative to their respective markets. In each case we are addressing the specific issues that impacted the ability of these clusters to take full advantage of ad spending improvements in the market and expect to see revenue performance in future periods more closely reflect the strength of our station operations and the health of the market.
"Our continued expense management disciplines resulted in another quarter of cost reductions on top of the decreases reported in the comparable period of 2009. In addition, reflecting our debt-reduction priority, during the quarter we made repayments totaling $1.8 million against our credit facility and at the end of the quarter total bank debt was reduced to $150.0 million. Given our initiatives over the last two years, BEASLEY BROADCAST GROUP has an appropriate cost structure that will result in significant operating leverage from increased radio advertising activity."