Beasley Revenue Falls, Income Rises In Fourth Quarter

Q4 Results

BEASLEY BROADCAST GROUP fourth quarter 2020 revenue fell 5% year-to-year to $68.5 million, blamed on pandemic-related advertising decreases, but net income rose 234% to $11 million (38 cents/diluted share), with income including a $4.4 million gain on dispositions, $3.6 million in other operating income and $2.2 million of non-cash impairment losses in 2020 and a $17.1 million gain on dispositions and $13.7 million of non-cash impairment losses in fourth quarter 2019.

CEO CAROLINE BEASLEY said, “BEASLEY’s 2020 fourth quarter financial results reflect the ongoing recovery of our business and solid execution by our teams in generating sequential quarter-over-quarter revenue growth that exceeded the high-end of the preliminary range we announced in JANUARY. During the quarter, we continued to navigate the ongoing pandemic-related challenges exceptionally well. The meaningful actions we have taken over the past nine-months, including reducing station operating expenses and negotiating discounts with service providers and partners, resulted in 28.8% year-over-year growth in SOI and improved SOI margin as well as a 62.4% increase in station operating income less corporate expenses. In addition, despite the pandemic and restrictions in certain markets, we generated fourth quarter free cash flow of $16.8 million, inclusive of the $4.6 million net gain from dispositions, which compares very favorably to the $20.7 million of free cash flow in the year ago period which benefited from $21.8 million in dispositions.

“Record fourth quarter net political revenue of $10.2 million, combined with the resumption of advertising in key categories, drove year-over-year revenue increases in six of our station clusters," she continued. "Excluding political revenue, BEASLEY continued to generate sequential month-over-month revenue growth, with OCTOBER up 8.3% over SEPTEMBER and NOVEMBER up 2.0% over OCTOBER, while DECEMBER paced slightly behind NOVEMBER due to a tightening of COVID-19 restrictions in certain markets. Notably, our continued emphasis on strong local content drove best-in-industry ratings performance for our station clusters in the fourth quarter, according to NIELSEN, and our cumulative on-air audience share has grown consistently since MARCH.

“The improvement in fourth quarter advertising trends and our ability to capture strong shares of political spending in our markets was complemented by positive results from BEASLEY’s digital and esports investments, which have been less impacted by the pandemic. Fourth quarter digital revenue rose 7.6% year-over-year to $7.3 million and accounted for approximately 10.6% of total fourth quarter revenue, compared to 9.2% of total revenue in the prior year period.

“Total outstanding debt as of DECEMBER 31, 2020 was $268.5 million. In early FEBRUARY, we closed on our offering of $300 million in aggregate principal amount of 8.625% Senior Secured Notes due 2026. The net proceeds of the offering were used to repay in full existing indebtedness under the company’s senior secured credit facilities and other debt, with the remaining proceeds added to our balance sheet for general corporate purposes. We believe this transaction improves our liquidity profile and provides growth capital as we continue to diversify our business, revenue and cash flows to higher growth areas.

“Year-over-year advertising revenue declines, while moderating, have continued in the 2021 first quarter, as the first two months of the comparable 2020 period were not impacted by the pandemic. However, we remain optimistic that the commercial advertising market will return to more normalized revenue levels as we move further into the year, following broad vaccine distribution.

“While the last ten months presented unprecedented challenges for ad-reliant businesses, I am extremely proud of the way our corporate and station level leaders and valued team members rose to the occasion and worked tirelessly to enable BEASLEY to generate positive cash flow and return to profitability in the fourth quarter of 2020. In 2021, our strategic priorities remain focused on delivering exceptional content and services to our listeners, advertisers, online users and esports fans, while diversifying our revenue, growing our cash flow and maintaining a solid and flexible balance sheet with liquidity at current or higher levels. We believe the experience of our team and competitive positions in our markets, combined with the steps we have taken to reduce costs and improve operating efficiencies, position BEASLEY BROADCAST GROUP well for near- and long-term success, particularly as economic trends improve later this year.”

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