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Beasley Broadcast Group Inc (BBGI) (Q1 2024) Earnings Call Transcript Highlights: Navigating ...

GuruFocus Research
·3-min read

  • Q1 Revenue: Decreased by 5.9% to $54.4 million

  • Net Political Revenue: $548,000, up from $19,000 in Q1 2023

  • Operating Expenses: Decreased by 2.8% or $1.4 million

  • Adjusted EBITDA: $731,000, down from $2.6 million in the previous year

  • Local Spot Revenue: Down 12.8% or $4.4 million

  • Same Station Local Revenue: Down 12% or $4.1 million

  • National Revenue: Increased by $100,000 or 1.1%

  • Digital Revenue Growth: 20% year-over-year on a same-station basis

  • Sports Betting Revenue: $4.9 million, a 17% increase year-over-year

  • Operating Income: Decreased to a negative $1.1 million from $413,000

  • Interest Expense: Decreased by $1 million year-over-year to $5.6 million

  • Total Debt: $267 million at the end of the quarter

  • Cash on Hand: $27.8 million, up from $26.7 million at year-end 2023

  • Capital Expenditures: $948,000 for the quarter

Release Date: May 08, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Beasley Broadcast Group Inc reported generating $548,000 of net political revenue, exceeding the first quarter budget and anticipating robust political spend in 2024.

  • Operating expenses declined by 2.8% or $1.4 million, reflecting cost efficiencies from divestitures and headcount reductions.

  • Digital revenue grew by 20% year-over-year on a same-station basis, now accounting for 20.1% of Q1 total revenue, indicating successful digital transformation.

  • Sports betting revenue increased by 17% year-over-year, contributing to 9% of total revenue for the quarter, driven by recent market expansions.

  • Beasley Broadcast Group Inc has a strong focus on community engagement, as demonstrated by their successful fundraising event with Children's Miracle Network, raising over $50,000.

Negative Points

  • First quarter revenue decreased by 5.9% or $3.4 million year-over-year, influenced by industry-wide advertising softness and divestitures.

  • Local spot revenue was down significantly by 12.8%, with a decline in agency business impacting overall performance.

  • Adjusted EBITDA for the first quarter was $731,000, a decrease from $2.6 million in the previous year, reflecting lower profitability.

  • The company reported a negative operating income of $1.1 million for the quarter, compared to a positive $413,000 in the year-ago quarter.

  • Beasley Broadcast Group Inc is pacing down in revenue for the second quarter, with economic uncertainties affecting advertising spend.

Q & A Highlights

Q: Could you give an update on the bond maturity in February of 2026? A: Caroline Beasley, CEO, stated that addressing the bond maturity is a top priority for the company and they aim to resolve it as soon as possible.

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Q: Is there anything left of e-sports at this point? A: Caroline Beasley, CEO, confirmed that the company no longer has any teams in e-sports.

Q: How much of the $6.8 million have been implemented? And when should we see the flow through? A: Marie Tedesco, CFO, explained that $3.8 million of the $6.8 million is related to the recent headcount reduction, including wages and benefits, which has been implemented. The remainder pertains to reductions in cost of goods sold and other operating expenses, impacting the current month through the end of the year.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus.