Beasley Reports Q4 Net Revenues of $68.5 Million
|RADIO ONLINE | Wednesday, February 10, 2021|
Beasley Broadcast Group has announced operating results for the three- and twelve-month periods ended December 31, 2020. Net revenues for Q4 2020 came in at $68 .5 million which primarily reflects a year-over-year decrease in commercial advertising revenue due to the impact of the COVID-19 pandemic, partially offset by growth in digital, esports and political revenue.
Beasley reported operating income of $19.6 million in the fourth quarter of 2020 compared to operating income of $11.2 million in the fourth quarter of 2019, largely reflecting the year-over-year increase in Station Operating Income (SOI, a non-GAAP financial measure), in addition to lower operating and corporate expenses, lower impairment losses, a $4.4 million gain on dispositions related to a land sale and $3.6 million in other operating income, partially offset by higher depreciation and amortization expense.
Beasley reported net income of $11.0 million, or $0.38 per diluted share, in the three months ended December 31, 2020, compared to net income of $4.7 million, or $0.17 per diluted share, in the three months ended December 31, 2019. The year-over-year increase was primarily due to the aforementioned decline in total operating expenses, as well as the gain on the land sale and other operating income.
SOI increased 28.8% to $20.1 million in the fourth quarter of 2020 compared to $15.6 million in the fourth quarter of 2019. The year-over-year increase is primarily attributable to Beasley's expense control initiatives to address the COVID-19 pandemic resulting in lower operating expenses , as well as the benefit of an increase in political revenue. Please refer to the "Calculation of SOI" and "Reconciliation of Net Income (Loss) to SOI" tables at the end of this announcement for a discussion regarding SOI calculations.
"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," said Beasley CEO Caroline Beasley. "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. 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."
"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."
The Company will host a conference call and webcast today, February 10, 2021, at 11:00 a.m. ET to discuss its financial results and operations. To access the conference call, interested parties may dial 334-777-6978, conference ID 3652070 (domestic and international callers). Participants can also listen to a live webcast of the call at the Company's website at www.bbgi.com. Please allow 15 minutes to register and download and install any necessary software. Following its completion, a replay of the webcast can be accessed for five days on the Company's website, www.bbgi.com.
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