Beasley Broadcast Group Reports Second Quarter Net Revenue of $27.0 Million


NAPLES, Fla., Aug. 07, 2015 (GLOBE NEWSWIRE) -- Beasley Broadcast Group, Inc. (Nasdaq:BBGI) a large- and mid-size market radio broadcaster, today announced operating results for the three month period ended June 30, 2015.

On December 1, 2014 the Company completed an Asset Exchange with CBS Radio Stations Inc. (CBS Radio) whereby Beasley exchanged a total of five radio stations in the Philadelphia and Miami-Fort Lauderdale markets for a total of fourteen CBS Radio stations in the Tampa-St. Petersburg, Charlotte and Philadelphia markets. As a result of the transaction, in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company is required to report the five stations that CBS Radio received under “discontinued operations” for the 2014 second quarter, despite having operated them through November. The table below summarizes the results of continuing and discontinued operations for the three and six month periods ended June 30, 2015 and 2014.

Summary of Second Quarter Results

Three Months Ended Six Months Ended
In millions, except per share data June 30, June 30,
2015 2014 2015 2014
Continuing Operations
Net revenue $ 27.0 $ 14.1 $ 51.3 $ 27.1
Station operating income
(SOI) (non-GAAP) 8.3 5.1 14.7 8.4
Operating income 5.1 2.3 7.7 2.9
Income (1) 2.5 0.7 3.8 (0.9 )
Income (loss) per diluted share (1) $ 0.11 $ 0.03 $ 0.17 $ (0.04 )
Three Months Ended Six Months Ended
In millions, except per share data June 30, June 30,
2015 2014 2015 2014
Discontinued Operations
Net revenue $ - $ 11.7 $ - $ 23.0
Station operating income
(SOI) (non-GAAP) - 4.4 - 8.2
Operating income - 4.3 - 7.9
Income - 2.4 - 4.6
Income per diluted share $ - $ 0.10 $ - $ 0.20
Combined Operations
(continuing and discontinued operations) (non-GAAP)
Net revenue $ 27.0 $ 25.9 $ 51.3 $ 50.1
Station operating income
(SOI) 8.3 9.5 14.7 16.6
Operating income 5.1 6.5 7.7 10.8
Net income (1) 2.5 3.0 3.8 3.7
Net income per diluted share attributable to Beasley Broadcast shareholders (1) $ 0.11 $ 0.13 $ 0.17 $ 0.16

(1) Net income and net income per diluted share from continuing operations for the six month period ended June 30, 2015 include a $0.4 million benefit from insurance proceeds related to a damaged radio tower in Augusta, Georgia.

Please refer to the “Calculation of SOI” and “Reconciliation of SOI to Net Income” tables at the end of this announcement for a discussion regarding SOI calculations. "Continuing & Discontinued Operations" is the sum of Continuing Operations and Discontinued Operations. Please refer to the “Pro Forma” and “Reconciliation of Pro Forma SOI to Net Income” tables at the end of this announcement for a discussion regarding our pro forma results.

Commenting on the results, George G. Beasley, Chairman and Chief Executive Officer, said, “Our reported second quarter results reflect a continuation of recent overall industry and market trends. On a pro forma basis, second quarter net revenue decreased 6.0% while SOI declined 8.4%. The decline in pro forma revenue is primarily attributable to overall weakness in Charlotte, Las Vegas and Wilmington which resulted in reduced operating leverage and ultimately impacted SOI. However we were able to partially offset the revenue decline through cost reductions that resulted in a 4.9% or $1.0 million reduction in station operating expenses.

“We also made further progress on our debt reduction efforts during the quarter, while continuing our commitment to return capital to shareholders. During the second quarter we made credit facility repayments totaling $3.0 million, reduced borrowings to $93.2 million at June 30, 2015 and declared our seventh consecutive quarterly cash dividend.

“The station exchange completed in late 2014 substantially broadened and diversified our local radio and marketing solutions platform. Since closing, we have been initiating strategies to extract operating and financial synergies from this exchange. We are actively implementing integration, cost efficiency and operating plans while remaining true to our value proposition by focusing on targeted localism and delivering quality programming, effective online marketing solutions and dedicated service to listeners and advertisers in these markets.

“Looking forward, we remain focused on operating our station clusters to match or exceed their market’s revenue performance while further strengthening our balance sheet. We believe our integration, programming, personnel, cost-efficiency and operating changes are now showing progress and are expected to benefit future periods’ results which will support our goals for growth and the enhancement of shareholder value.”

About Beasley Broadcast Group:

Founded in 1961, Beasley Broadcast Group, Inc.,, is a radio broadcasting company that owns and operates 53 stations (34 FM and 19 AM) located in twelve large- and mid-size markets in the United States.

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