Beasley Broadcast Group Reports Fourth Quarter and Year-End Results.NAPLES Naples, city, Italy Naples, Ital. Napoli, city (1991 pop. 1,067,365), capital of Campania and of Naples prov., S central Italy, on the Bay of Naples, an arm of the Tyrrhenian Sea. , Fla. -- Beasley Broadcast Group Beasley Broadcast Group, Inc. NASDAQ: BBGI, based in Naples, Florida, is an owner/operator of radio stations in the United States. As of November, 2006, the company owned 16 AM stations and 26 FM stations. , Inc. (Nasdaq:BBGI BBGI Bloc de Branche Gauche Incomplet (French) ), a large- and mid-size market radio broadcaster, today announced operating results for the three- and twelve-month periods ended December December: see month. 31, 2004. For the three months ended December 31, 2004, consolidated net revenue increased 4% to $33.4 million from $32.1 million in the same period of 2003. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the period increased 15% to $8.5 million from $7.4 million in the fourth quarter of 2003, while Station Operating Income (SOI (Silicon On Insulator) A chip architecture that increases transistor switching speed by reducing capacitance (build-up of electrical charges in the transistor's elements), and thus reducing the discharge time. The power requirement is also reduced in some designs. ) increased 14% to $11.0 million in the fourth quarter of 2004 from $9.6 million in the year-ago period. Net income rose 19% to $3.9 million, or $0.16 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, from $3.3 million, or $0.14 per diluted share, in the three months ended December 31, 2003. Per share results for the fourth quarters of 2004 and 2003 are based on 24,622,866 and 24,381,411 shares outstanding on a fully diluted basis, respectively. Reported and same-station results are the same for the three- and twelve- month periods ended December 31, 2004 and 2003, as no station acquisitions or dispositions were completed in the relevant periods. For the twelve months ended December 31, 2004, consolidated net revenue increased 7% to $122.2 million from $114.5 million in the same period of 2003. Operating income from continuing operations rose 11% to $29.4 million in 2004 from $26.4 million in the year-ago period, while SOI increased 10% to $39.1 million in 2004, compared to $35.5 million in the year-ago period. For 2004, the Company reported net income of $12.0 million, or $0.49 per diluted share, compared to net income of $12.8 million, or $0.52 per diluted share, in 2003. Net income for 2004 reflects a $2.4 million pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta loss on extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt. Net income for the 2003 period reflects a $4.5 million pre-tax gain on the sale of investment securities and a $1.6 million pre-tax gain on the increase in fair value of the Company's derivative derivative: see calculus. derivative In mathematics, a fundamental concept of differential calculus representing the instantaneous rate of change of a function. financial instruments. Per share results for 2004 and 2003 are based on 24,528,971 and 24,334,480 shares outstanding on a fully diluted basis, respectively. -more- Commenting on the results, George George, river, c.345 mi (560 km) long, rising in a lake on the Quebec-Labrador boundary, E Canada. It flows N through Indian Lake (125 sq mi/324 sq km) to Ungava Bay (an arm of Hudson Strait). G. Beasley Beasley is a surname, and may refer to
Augusta (oug  `stä), city (1991 pop. 34,189), E Sicily, Italy, on an island (formerly a peninsula) in the Ionian Sea, connected by bridge with the Sicilian clusters, which is partially a result of
political advertising. Fourth quarter revenues also benefited from
double-digit dou·ble-dig·itadj. Being between 10 and 99 percent: double-digit inflation. revenue increases at our Philadelphia Philadelphia, ancient cities Philadelphia, name of several ancient cities. One was in Lydia, W Asia Minor (now W Turkey). At the foot of Mt. Tmolus and near the location of modern Alaşehir, it was founded in the 2d cent. B.C. and Fayetteville Fayetteville (fā`ĕtvĭl). 1 City (1990 pop. 42,099), seat of Washington co., NW Ark., in the Ozarks; inc. 1836. It is an agricultural trade center with canneries and food processors. The Univ. clusters." "These cluster performances cap a year of significant growth and achievement for the Beasley Broadcast Group. A number of programming and personnel changes made several of our clusters more competitive last year, positioning the Company to capture a greater share of revenue available in our markets. Additionally, we realized solid increases in operating income and SOI during the year. Cash flow generated through these improvements continues to strengthen our balance sheet and position the Company to pursue value enhancing strategies for our shareholders, such as the $25 million share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program we initiated last summer." Pursuant to Beasley Broadcast Group's previously announced share repurchase authorization The right or permission to use a system resource; the process of granting access. See access control. , the Company purchased 15,000 shares of its common stock in open market transactions during the three-month period ended December 31, 2004, bringing to 43,065 the total number of shares repurchased since the program was established last Summer. The Company has approximately $24.4 million available remaining under its previously announced stock buy-back authorization. Mr. Beasley continued, "With the economy slowly improving and advertiser ad·ver·tise v. ad·ver·tised, ad·ver·tis·ing, ad·ver·tis·es v.tr. 1. To make public announcement of, especially to proclaim the qualities or advantages of (a product or business) so as to increase sentiment toward our radio stations improving, we expect 2005 to yield new accomplishments for the Beasley Broadcast Group. As always, we will continue to invest in station programming, personnel and promotions to expand our competitive edge. And with our stronger balance sheet, we will also pursue new growth strategies that position the Company to expand its revenue and customer base." First Quarter Guidance For the three-month period ending March 31, 2005, the Company anticipates reporting a net revenue increase of up to 3% over year-ago levels, reflecting a continuation of business trends from the fourth quarter and favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. comparisons against year-ago results. This guidance is based on the economic and market conditions as of February 9, 2005, and assumes no material changes in economic conditions or other major world events. The Company can give no assurance as to whether these conditions will continue, or if they change, how such changes may affect the Company's current expectations. While the Company may, from time to time, issue updated guidance, it assumes no obligation to do so. Conference Call Information The Company will host a conference call and simultaneous webcast today, February 9, 2005, at 10:00a.m. ET to discuss its financial results and operations. Both the call and webcast are open to the general public. The dial in number for the conference call is 973/409-9261; please call five minutes in advance to ensure that you are connected prior to the presentation. Following its completion, a replay of the call can be accessed for 14 days on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the from the Company's Web site (www.bbgi.com) or for 24 hours Adv. 1. for 24 hours - without stopping; "she worked around the clock" around the clock, round the clock via telephone at 973/341-3080 (reservation 5691022). About Beasley Broadcast Group Founded in 1961, Beasley Broadcast Group, Inc. is a radio broadcasting The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. company that owns or operates 41 stations (26 FM and 15 AM) located in ten large- and mid-size markets in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Definitions Same-station results compare stations operated by our company at December 31, 2004 to those same-stations operated by our company at December 31, 2003. Station Operating Income (SOI) consists of net revenue less station operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . We define station operating expenses as costs of services (excluding depreciation and amortization) and selling, general and administrative expenses. SOI and same-station SOI are financial measures of performance that are not calculated in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting . We use these non-GAAP financial measures for internal budgeting purposes and to evaluate the performance of our radio stations. Management uses SOI to evaluate the operating performance of our radio stations because SOI enables management to measure the performance of our radio stations before non-cash expenses Noun 1. non-cash expense - an expense (such as depreciation) that is not paid for in cash disbursal, disbursement, expense - amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures) for depreciation and amortization and general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. and expenses related to our corporate and capital structure. Management also uses SOI to make decisions as to the acquisition and disposition of radio stations. SOI excludes recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. non-cash and corporate-level costs and expenses, which may also be material to an assessment of the Company's overall operating performance. Management compensates for this limitation by separately considering the impact of these excluded items to the extent they are material to operating decisions or assessments of the Company's operating performance. Moreover, the corresponding amounts of the non-cash and corporate-level costs and expenses excluded from the calculation are available to investors as they are presented as separate line items on our statements of operations contained in our periodic reports filed with the SEC. While the Company recognizes that because SOI is not calculated in accordance with generally accepted accounting principles, it is not necessarily comparable to similarly titled measures employed by other companies, SOI is a measure widely used in the radio broadcast industry. Management believes that SOI provides meaningful information to investors because it is an important measure of how effectively we operate our business (i.e., operate radio stations) and assists investors in comparing our operating performance with that of other radio companies. We also believe that providing SOI on a same station basis is a useful measure of our performance because it presents SOI before the impact of any acquisitions or dispositions completed during the relevant periods. This allows management and investors to measure the performance of radio stations we owned and operated during the entirety The whole, in contradistinction to a moiety or part only. When land is conveyed to Husband and Wife, they do not take by moieties, but both are seised of the entirety. of two operating periods being compared. Note Regarding Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. : Statements in this release that are "forward-looking statements" are based upon current expectations and assumptions, and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Words or expressions such as "intends", "expects," "expected," "anticipates" or variations of such words and similar expressions are intended to identify such forward-looking statements. Key risks are described in the Company's reports filed with the Securities and Exchange Commission (SEC). Readers should note that these statements are subject to change and to inherent risks and uncertainties and may be impacted by several factors, including: economic and regulatory changes, the loss of key personnel, a downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. in the performance of our large-market radio stations, the Company's substantial debt levels, and changes in the radio broadcast industry generally. The Company's actual performance and results could differ materially because of these factors and other factors discussed in the "Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Results of Operations and Financial Condition" of our SEC filings, including but not limited to annual reports on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. or quarterly reports on Form 10-Q Form 10-Q See 10-Q. , copies of which can be obtained from the SEC, www.sec.gov, or our website, www.bbgi.com. These statements do not include the potential impact of any acquisitions or dispositions announced or completed after February 9, 2005. All information in this release is as of February 9, 2005, and the Company undertakes no obligation to update the information contained herein to actual results or changes to the Company's expectations. -tables follow-
BEASLEY BROADCAST GROUP, INC.
Consolidated Statements of Operations (unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2004 2003 2004 2003
----------- ----------- ---------- ----------
Net revenue $33,405,472 $32,132,660 $122,204,954 $114,482,240
----------- ----------- ------------ -------------
Costs and expenses:
Cost of services
(excluding
depreciation and
amortization) (1) 11,442,150 12,241,721 40,382,608 39,461,502
Selling,
general and
administrative(1) 10,942,384 10,250,276 42,735,701 39,559,535
Corporate
general and
administrative 1,747,556 1,391,811 6,384,047 5,494,605
Depreciation and
amortization 814,490 874,436 3,276,521 3,573,992
----------- ------------ ----------- ----------
Total costs
and expenses 24,946,580 24,758,244 92,778,877 88,089,634
Operating income
from continuing
operations 8,458,892 7,374,416 29,426,077 26,392,606
Interest expense (1,734,110) (2,267,987) (7,009,591) (11,195,231)
Loss on
extinguishment of
long-term debt (2) -- -- (2,418,781) --
Gain on sale of
investments -- -- -- 4,491,938
Gain on increase in
fair value of
derivative
financial
instruments 3,854 220,815 179,185 1,629,815
Interest income 108,243 90,189 384,022 593,409
Other income
(expense) (105,110) 85,147 (167,289) (560,849)
----------- ------------ ----------- ----------
Income from
continuing
operations before
income taxes 6,731,769 5,502,580 20,393,623 21,351,688
Income tax expense 2,818,300 2,202,575 8,362,781 8,847,336
----------- ------------ ----------- ----------
Income from
continuing
operations before
discontinued
operations 3,913,469 3,300,005 12,030,842 12,504,352
Discontinued
operations (net of
income taxes) -- -- -- 266,840
----------- ------------ ----------- ----------
Net income $ 3,913,469 $ 3,300,005 $ 12,030,842 $ 12,771,192
=========== ============ =========== ===========
Basic net income per
share:
Income from
continuing
operations before
discontinued
operations 0.16 0.14 0.50 0.52
Discontinued
operations -- -- -- 0.01
----------- ------------ ----------- ----------
Net income $ 0.16 $ 0.14 $ 0.50 $0.53
=========== ============ =========== ===========
Diluted net income
per share:
Income from
continuing
operations before
discontinued
operations 0.16 0.14 0.49 0.51
Discontinued
operations -- -- -- 0.01
----------- ------------ ----------- ----------
Net income $ 0.16 $ 0.14 $ 0.49 $ 0.52
=========== ============ =========== ===========
Basic common shares
outstanding 24,236,287 24,274,654 24,263,103 24,273,783
=========== ============ =========== ===========
Diluted common
shares outstanding 24,622,866 24,381,411 24,528,971 24,334,480
=========== ============ =========== ===========
(1) We refer to our "Cost of Services" (excluding depreciation and
amortization) and "Selling, General and Administrative" together as
our "Station operating expenses" for the purposes of calculating
"Operating Income from Continuing Operations and Margin," "SOI and
Margin," and "Same-Station SOI" below and reconciling each to
"Operating Income from Continuing Operations."
(2) In the 2004 first quarter, Beasley recorded a loss on
extinguishment of debt of $2.4 million to write-off debt issuance
costs related to the old credit facility and certain fees related to
establish a new credit facility.
Selected Balance Sheet Data (Unaudited)
(in thousands)
December 31, December 31,
------------ ------------
2004 2003
------------ ------------
Cash and cash equivalents $ 14,850 $ 7,730
Working capital 26,580 26,799
Total assets 286,300 277,891
Long term debt, less current installments 153,362 169,987
Total stockholders' equity 81,075 69,410
Selected Statement of Cash Flows Data (Unaudited)
(in thousands)
Twelve Months Ended
December 31,
-------------------------
2004 2003
----------- ----------
Net cash provided by operating activities $ 24,736 $ 20,338
Net cash provided by (used in) investing
activities (3,708) 8,405
Net cash used in financing activities (13,907) (26,461)
Net increase in cash & cash equivalents 7,121 2,282
Calculation of SOI (Unaudited):
------------------------------
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------------- ---------------------------
2004 2003 2004 2003
------------ ------------ ------------- -------------
Net revenue $33,405,472 $32,132,660 $122,204,954 $114,482,240
Station operating
expenses (22,384,534) (22,491,997) (83,118,309) (79,021,037)
------------ ------------ ------------- -------------
SOI $11,020,938 $9,640,663 $39,086,645 $35,461,203
============ ============ ============= =============
Reconciliation of SOI to Net Income (Unaudited):
-----------------------------------------------
Three Months Ended Twelve Months Ended
December 31, December 31,
--------------------- ----------------------
2004 2003 2004 2003
----------- --------- ---------- ----------
SOI $11,020,938 $9,640,663 $39,086,645 $35,461,203
Corporate general and
administrative (1,747,556)(1,391,811) (6,384,047)(5,494,605)
Depreciation and
amortization (814,490) (874,436) (3,276,521)(3,573,992)
Interest expense (1,734,110)(2,267,987) (7,009,591)(11,195,231)
Loss on extinguishment
of long-term debt -- -- (2,418,781) --
Gain on sale of
investments -- -- -- 4,491,938
Gain on increase in
fair value of
derivative financial
instruments 3,854 220,815 179,185 1,629,815
Interest income 108,243 90,189 384,022 593,409
Other non-operating
expense (105,110) 85,147 (167,289) (560,849)
Income tax expense (2,818,300)(2,202,575) (8,362,781)(8,847,336)
Discontinued operations
(net of
Income taxes) -- -- -- 266,840
----------- --------- ---------- ----------
Net income $3,913,469 $3,300,005 $12,030,842 $12,771,192
=========== ========== =========== ===========
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