Beasley Broadcast Group Q3 Net Revenues Down 5%

RADIO ONLINE | Friday, October 24, 2014

Beasley Broadcast Group reported third quarter net revenues of $13 million, down 5% from $13.7 million in 2013. The decline primarily reflects lower ad revenue at BBG's Wilmington and Greenville-New Bern clusters which more than offset net revenue increases at the company's groups in Las Vegas and Fort Myers. Station operating expenses grew 1.8%, while station operating income (SOI) fell 18.9% to $3.6 million. BBG posted net earnings of $2.4 million (11 cents per share) as compared to $3.1 million (14 cents) in the year-ago period.

Commenting on the results, Chairman/CEO George G. Beasley said, "We don't believe third quarter operating results from continuing operations reflect the strength, ratings and local relevance of our platform, as the lower level of reported net revenue from continuing operations is temporarily mis-matched with certain expenses that will be better amortized across the company's larger revenue base once we complete the asset exchange with CBS Radio."

"We are very excited by the potential presented by the CBS transaction as we will exchange five stations in Philadelphia and Miami for fourteen stations in Tampa-St. Petersburg, Charlotte and Philadelphia. Throughout Beasley Broadcast Group's 53-year history, we have actively managed our station portfolio with the goal of serving the local communities where we operate, diversifying our operations, managing risk and improving financial results. The planned asset exchange with CBS Radio addresses these strategic objectives and upon completion, we will expand our owned and operated station base by nine stations increasing Beasley's portfolio to 53."

"In addition to our initiatives during the quarter to expand and diversify our station and digital media operations, we continue to focus on debt reduction and returning capital to shareholders," Beasley said.