Release Date: November 05, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Beasley Broadcast Group Inc (BBGI, Financial) successfully reduced its debt by $47 million and extended maturities to August 2028, reflecting strong confidence from noteholders.
- Digital revenue continues to grow, accounting for 19.4% of Q3 total revenue, up from previous years.
- Political revenue exceeded expectations, contributing significantly to the company's financial performance.
- The company achieved a 0.5% increase in same-station revenue for Q3, indicating resilience in a challenging ad environment.
- Operational efficiencies led to a 0.3% decline in operating expenses, despite severance costs, showcasing effective cost management.
Negative Points
- Total net revenue declined by 3.2% compared to the previous year, indicating challenges in overall revenue growth.
- Local over-the-air revenue decreased by 8.9%, driven by a decline in local agency business.
- National advertising remains constrained, with a 16% decline excluding political revenue.
- The auto category revenue fell by 11% year-over-year, reflecting ongoing challenges in the automotive sector.
- Cash on hand decreased from $33.3 million at the end of Q2 2024 to $27.8 million, indicating a reduction in liquidity.
Q & A Highlights
Q: Are you seeing any resumption in national advertising in Philadelphia and Boston?
A: Caroline Beasley, CEO: Not yet. Advertisers are hesitant to book anything until after the election due to inventory shortages. We are hopeful that advertisers will return once the election is over and the noise has passed.
Q: Post the exchange, how do you think about liquidity and the potential for more bond buybacks?
A: Lauren Burrows Coleman, CFO: We are focused on maintaining a minimum cash position. Anything above that, we will seek opportunities to opportunistically buy back bonds.
Q: When do you foresee year-over-year comps going positive again?
A: Caroline Beasley, CEO: In the third quarter, our revenue was up 0.5% on a same-station basis. Fourth quarter is pacing up in the mid-single digits, so we expect revenue to be up in the fourth quarter as well.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
