Beasley Revenues, Income Up For Q2
July 30, 2010 at 4:26 AM (PT)
BEASLEY BROADCAST GROUP second-quarter revenue rose 5.6% to $24.9 million (same station up 6.6%), resulting in net income jumping 188.1% to $2 million (9 cents/diluted share). The revenue jump was attributed to higher net revenue at the LAS VEGAS, PHILADELPHIA and FT. MYERS-NAPLES clusters. Other clusters were flat, with three clusters up, offsetting declines at five others.
Chairman/CEO GEORGE BEASLEY said, "The radio industry and BEASLEY BROADCAST GROUP are continuing to see a rebound in advertising spending and the 6.6% rise in second quarter same-station net revenue was the Company's best comparison since late 2007. The significant growth in second quarter SOI, operating income and net income again highlights the value of the Company's streamlined cost structure and the significant operating leverage in our model.
"Key BEASLEY clusters in PHILADELPHIA, LAS VEGAS, FT. MYERS, AUGUSTA and the COASTAL CAROLINAS exceeded results from a year ago and operating results also benefited from growth in national revenue, reversing a trend from recent periods. In addition, the Company continued to drive strong interactive revenue growth with second-quarter revenue from these sources rising approximately 19% from 2009 second-quarter levels. Reflecting station level expense management disciplines, the Company generated second-quarter SOI margins of 34.0%, a significant rise from 28.4% in the comparable period last year.
"We intend to remain vigilant with our expense management programs and to further reduce borrowings under our credit facility as well as our leverage ratio. In this regard, we ended the 2010 second quarter with approximately $147.8 million of borrowings under our credit facility, down from $151.8 million at the end of 2009 and a marked reduction from $174.5 million at December 31, 2008, and we accomplished this despite the enormous challenges presented during this period by the economic recession.
"The second-quarter results demonstrate that BEASLEY BROADCAST GROUP is well positioned to benefit both on the top and bottom line from even modest advertising activity increases in our markets. Looking forward, we remain focused on managing our station clusters to match or exceed the revenue performance of the market, participating in expected higher levels of political spending in the second half of 2010 and further growing revenue related to our interactive initiatives."