Beasley Broadcast Unable to Meet 10-Q Filing Deadline

RADIO ONLINE | Friday, May 15, 2020

Beasley Media Group

In an 8K filing with the SEC, Beasley Broadcast Group said it's unable to meet the filing deadline for its quarterly report on Form 10-Q for the quarter ended March 31, 2020 due to circumstances related to the COVID-19 pandemic. The company said it's relying on the order issued issued by the SEC granting a 45-day extension to file certain disclosure reports that would otherwise have been due between March 1, 2020 and July 1. BBG said it intends to file its Quarterly Report no later than June 29.

In the filing, Beasley said the effects of the COVID-19 pandemic have limited the company's employees ability to conduct normal business activities, including the preparation and review of the Quarterly Report. In particular, COVID-19 and related precautionary responses have caused limited access to its facilities and disrupted normal interactions among its accounting personnel and other persons involved in the completion of its quarterly review and preparation of the Quarterly Report. These restrictions have slowed the completion of its internal quarterly review, including evaluating the various impacts of COVID-19 on financial statements.

Additionally, the effects of the COVID-19 pandemic have caused disruptions to the company's business and operations, and the related uncertainty as to when or the manner in which the conditions surrounding the COVID-19 pandemic will subside have made it necessary for it to seek an amendment to its credit facility that would, among other things, amend certain financial covenants. For the quarter ended March 31, BBG was in compliance with its financial covenants related to its credit facility. However, at that time the company was projecting that it was unlikely to be able to comply with its First Lien Leverage Ratio as of June 30.

As a result, the company is seeking and expects to enter into an amendment to its credit facility in the coming weeks, and projects that it will be in compliance with the financial covenants, as amended, over the next twelve months. If BBG is unable to obtain an amendment to its credit facility, it would result in an event of default, which would materially affect its results of operations, liquidity and financial condition.

Beasley also noted that Impairments of its FCC licenses and/or goodwill related to the impact of the COVID-19 pandemic will adversely affect its operating results and it may be required to record further impairment losses in the future. As of December 31, 2019, the company's FCC licenses and goodwill represented 72% of its total assets. Due to the impact of the COVID-19 pandemic on the U.S. economy, the company expects to record impairment losses of $6.8 million related to the FCC licenses in its Atlanta, Middlesex NJ, Monmouth NJ, Morristown NJ, Las Vegas, West Palm Beach-Boca Raton and Wilmington DE market clusters.