• Total Net Revenue: $58.2 million for Q3 2024.
• Same-Station Revenue: Increased by 0.5% for Q3 2024.
• Operating Expenses: Declined by 0.3% or $171,000 for Q3 2024.
• Station Operating Income (SOI): Declined by $1.8 million to $8.2 million for Q3 2024.
• Adjusted EBITDA: $5.6 million for Q3 2024, down 6.9% year-over-year.
• Digital Revenue: Grew 11.7% on a same-station basis for Q3 2024.
• Political Revenue: $2.7 million for Q3 2024, bringing year-to-date net political revenue to $3.7 million.
• Interest Expense: Decreased by $353,000 to $6.1 million for Q3 2024.
• Total Debt: $267 million at the end of Q3 2024, reduced to $220 million pro forma for the transaction completed on October 8, 2024.
• Cash on Hand: $27.8 million at the end of Q3 2024.
• Capital Expenditures: $642,000 for Q3 2024.

• Warning! GuruFocus has detected 5 Warning Signs with BBGI.

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 (NASDAQ:BBGI) 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.