Q3 Same-Station Revenues Rise, Income Up At Beasley
October 29, 2010 at 4:30 AM (PT)
BEASLEY BROADCAST GROUP third-quarter net revenue fell 0.9% year-to-year to $24.2 million, primarily due to a $500,000 decline at the company's MIAMI-FORT LAUDERDALE cluster attributed to the loss of MIAMI DOLPHINS football radio rights, which had generated about $700,000 in the same quarter of 2009.
The MIAMI drop was partially offset by gains in LAS VEGAS. On a same-station basis (excluding 2009 revenue from stations it sold in LAS VEGAS and the DOLPHINS revenue), revenue rose 2.6% to $24.2 million. Net income rose 51.2% to $2.1 million (9 cents/diluted share).
Chairman/CEO GEORGE G. BEASLEY said, "BEASLEY BROADCAST GROUP continues to benefit from the rebound in radio advertising activity and is focused on driving profitable revenue growth from our market clusters. Reflecting this focus, during the 2010 third quarter we significantly improved operating results at our station clusters in MIAMI and LAS VEGAS, two of the three largest markets where we operate. With the significant operating leverage in our business model related to company-wide expense reductions, the 2.6% rise in third quarter same-station net revenue drove a 10.3% rise in same station SOI. Reflecting station level expense management disciplines, the Company generated third quarter same station SOI margins of 35.0%, up from 32% in the comparable period last year.
"In addition to our focus on station operations, we continue to strengthen our balance sheet by repaying borrowings under our credit facility which is reducing our leverage ratio. We ended the 2010 third quarter with approximately $145.3 million of borrowings under our credit facility, down from $151.8 million at the end of 2009.
"Looking forward, BEASLEY BROADCAST GROUP has opportunities for further financial growth by improving our station clusters' sales to match or exceed the market revenue performance, continuing to grow revenue related to our interactive initiatives and by addressing the balance sheet through further reductions in borrowings."