Beasley Revenues, Income Up In Second Quarter
July 29, 2011 at 4:19 AM (PT)
BEASLEY BROADCAST GROUP second-quarter net revenue rose 2.3% to $25.5 million, with net income up 37.7% to $2.8 million (12 cents/diluted share). The revenue boost was credited to increases in MIAMI-FORT LAUDERDALE and PHILADELPHIA, with other markets flat; the rise in net income was attributed to the higher revenue combined with lower interest expense.
Chairman/CEO GEORGE G. BEASLEY said that the company "extended its record of revenue growth with a 2.3% net revenue improvement in the 2011 second quarter as station clusters in our two largest markets -- MIAMI and PHILADELPHIA -- significantly out-performed their markets. BEASLEY's second-quarter results mark our fifth consecutive quarter of same-station revenue growth, which combined with ongoing expense management, led to our sixth consecutive quarter of station operating income and margin gains. Notwithstanding the concerns of further slowdowns in the U.S. economy and revenue volatility in our markets, we generated a 4.1% rise in same station revenue during the first half of 2011.
"Our streamlined cost and operating structure continues to deliver significant operating leverage, solid cash flow growth and margin improvements even during periods of modest revenue increases. During the quarter, we held station operating expenses and total operating expenses flat which resulted in a 7.2% rise in station operating income and a nearly 11% increase in operating income. The revenue growth combined with expense discipline drove station operating income margins to 35.7% from 34% in the year ago period.
"During the second quarter, we further strengthened our balance sheet as we made repayments totaling $3.1 million against the credit facility which reduced total bank debt to $135.7 million at June 30 compared with $142.0 million at the end of 2010. The combination of lower outstanding credit facility balances and the expiration of a swap agreement led to a nearly 27% year-over-year decline in interest expense which contributed to net income and earnings per share growth of approximately 38% and 33%, respectively. We ended the second quarter with our lowest leverage since mid-2006 and remain committed to using cash from operations to further lower debt and other initiatives which can enhance shareholder value.
"We believe our success in consistently achieving profitable revenue growth reflects our focus on our core on-air programming and our ability to build digital extensions for our core content and applications that heighten listener engagement and deliver innovative marketing solutions to advertisers. Looking forward, we remain focused on our station clusters matching or exceeding their market's revenue performance, and further addressing the balance sheet through continued reductions in borrowings. Notwithstanding our optimism for radio's growing relevancy in the digital world and our future prospects, near-term results are being impacted by uncertainty related to the domestic and world economies, as well as comparisons with the year-ago period which included political spending."