Beasley Broadcast Group Reports Record First Quarter Revenues; Net Revenue Increases 6.3%.Business Editors 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.--(BUSINESS WIRE)--May 3, 2004 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-month period ended March 31, 2004. For the three months ended March 31, 2004, consolidated net revenue increased 6.3% to $26.1 million from $24.5 million in the same period of 2003. The net revenue increase reflects improved performances in eight of the ten markets in which Beasley Beasley is a surname, and may refer to
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 was flat at $4.7 million compared to the year ago period, 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. ) was $7.1 million, up 2.2% from $7.0 million in the year-ago period. Net income was $0.2 million, or $0.01 per basic and 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, compared to $2.0 million, or $0.08 per basic and diluted share, in the three months ended March 31, 2003. Net income for the 2004 first quarter includes a previously-disclosed 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 of $2.4 million, or $0.06 per share on an after-tax basis After-tax basis The comparison basis used to analyze the net after-tax returns on a corporate taxable bond and a municipal tax-free bond. , to write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. debt issuance costs related to the refinancing Refinancing An extension and/or increase in amount of existing debt. of the Company's old credit facility and certain fees related to the new credit facility, which was entered into in the 2004 first quarter. In the 2003 first quarter, Beasley had net income from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. of approximately $0.3 million, or $0.01 per share, as well as a gain of $0.8 million on the sale of investment securities. Per share results for the first quarters of 2004 and 2003 are based on 24,773,845 and 24,285,116 shares outstanding on a fully diluted basis, respectively. Reported and same-station results are the same for the three month periods ended March 31, 2004 and 2003, as no station acquisitions or dispositions were completed during either period. 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, Chairman and Chief Executive Officer, said, "With stronger than expected revenue performances across our portfolio, 2004 is off to a solid start. We saw significant revenue increases at Miami-Ft. Lauderdale Lauderdale is the name of various places:
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. cluster, where a format change at one of our two FM stations created difficult year-over-year revenue comparisons. Importantly, our 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. market cluster, which was impacted by troop deployments in 2003, saw its first revenue increase in over a year. "In keeping with our strategy to invest in our stations and consistent with prior guidance, 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. increased during the first quarter and included promotional and programming support for our newly reformatted station in Philadelphia. We believe this prudent spending represents the most direct avenue for growing our revenues." Second Quarter Guidance For the three-month period ending June 30, 2004, the Company anticipates reporting a 3.5% net revenue improvement from the year-ago levels. Beasley's second quarter guidance reflects the impact of reformatting one of its FM stations in the Philadelphia market. This guidance is based on the economic and market conditions as of May 3, 2004, 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, May 3, 2004, at 10:30 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT 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 973/409-9253; 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 4668785). 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 the Company at March 31, 2004 to those same-stations operated by our company at March 31, 2003. Station Operating Income (SOI) consists of net revenue less station operating expenses. Beasley defines station operating expenses as costs of services (excluding depreciation and amortization) and selling, general and administrative expenses. SOI replaces broadcast cash flow (BCF BCF Billion Cubic Feet BCF Bioconcentration Factor BCF British Chess Federation BCF British Coatings Federation BCF Breast Cancer Fund BCF Bank Credit Facility BCF Bulked Continuous Filament BCF British Cycling Federation BCF Boeing Converted Freighter ) as the metric used by management to assess the performance of its stations. Although it is calculated in the same manner as BCF, Beasley's management believes that using the term "station operating income" provides a more accurate description of the performance measure. 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 accounting principles generally accepted in the United States of America UNITED STATES OF AMERICA. The name of this country. The United States, now thirty-one in number, are Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, New Hampshire, ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). "). Beasley uses these non-GAAP financial measures for internal budgeting purposes and to evaluate the performance of its radio stations. Beasley uses SOI to evaluate the operating performance of its radio stations because SOI enables it to measure the performance of its 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 its corporate and capital structure. Beasley's 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. Beasley's 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 Beasley's periodic reports filed with the SEC. While Beasley recognizes that because SOI is not calculated in accordance with GAAP, it is not necessarily comparable to similarly titled measures employed by other companies, SOI is a measure widely used in the radio broadcast industry. Beasley believes that SOI provides meaningful information to investors because it is an important measure of how effectively the Company operates its business (i.e., operate radio stations) and assists investors in comparing Beasley's operating performance with that of other radio companies. The Company also believes that providing SOI on a same station basis is a useful measure of performance because it presents SOI before the impact of any acquisitions or dispositions completed during the relevant periods. This allows Beasley's management and investors to measure the performance of radio stations the Company 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 Beasley's 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 Beasley's website, www.bbgi.com. These statements do not include the potential impact of any acquisitions or dispositions announced or completed after May 3, 2004. All information in this release is as of May 3, 2004, 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
March 31,
2004 2003
-------------- ------------
Net revenue $26,068,618 $24,519,616
-------------- ------------
Costs and expenses:
Cost of services (excluding depreciation
and amortization) (1) 8,923,760 8,060,844
Selling, general and administrative (1) 10,039,239 9,506,843
Corporate general and administrative 1,562,610 1,393,170
Depreciation and amortization 822,826 901,425
-------------- ------------
Total costs and expenses 21,348,435 19,862,282
Operating income from continuing operations 4,720,183 4,657,334
Interest expense (1,964,500) (3,088,990)
Loss on extinguishment of long-term
debt (2) (2,418,781) --
Gain on sale of investments -- 799,548
Gain on increase in fair value of
derivative financial instruments 39,113 406,000
Interest income 88,856 167,392
Other non-operating expense (60,070) (55,499)
-------------- ------------
Income from continuing operations before
income taxes 404,801 2,885,785
Income tax expense 161,920 1,176,291
-------------- ------------
Income from continuing operations before
discontinued operations 242,881 1,709,494
Discontinued operations (net of income
taxes) -- 266,840
-------------- ------------
Net income $242,881 $1,976,334
============== ============
Basic and diluted net income per share:
Income from continuing operations before
discontinued operations 0.01 0.07
Discontinued operations -- 0.01
-------------- ------------
Net income $0.01 $0.08
============== ============
Basic common shares outstanding 24,275,700 24,273,441
============== ============
Diluted common shares outstanding 24,773,845 24,285,116
============== ============
(1) Beasley refers to its "Cost of services" (excluding depreciation
and amortization) and "Selling, general and administrative"
together as "Station operating expenses" for the purposes of
calculating " Station Operating Income" below.
(2) Beasley recorded a loss on extinguishment of debt of $2.4 million,
or $0.06 per diluted share on an after-tax basis, to write-off
debt issuance costs related to the old credit facility and certain
fees related to the new credit facility.
Selected Balance Sheet Data - Unaudited
(in thousands)
--------- --------
March 31, Dec. 31,
--------- --------
2004 2003
--------- --------
Cash and cash equivalents $10,065 $7,730
Working capital 26,298 26,799
Total assets 278,311 277,891
Long term debt, less current installments 167,987 169,987
Total stockholders' equity 69,713 69,410
Selected Statement of Cash Flows Data - Unaudited
(in thousands)
---------------
Three Months
Ended
March 31,
---------------
2004 2003
------- -------
Net cash provided by operating activities $7,649 $6,131
Net cash provided by (used in) investing activities (1,029) 2,175
Net cash used in financing activities (4,284) (4,331)
Net increase in cash & cash equivalents 2,336 3,975
Station Operating Income (Unaudited):
-------------------------
Three Months Ended
March 31,
-------------------------
2004 2003
------------ ------------
Net revenue $26,068,618 $24,519,616
Station operating expenses (18,962,999) (17,567,687)
------------ ------------
SOI $7,105,619 $6,951,929
============ ============
Reconciliation of SOI to Net Income (Unaudited):
-----------------------
Three Months Ended
March 31,
-----------------------
2004 2003
----------- -----------
SOI $7,105,619 $6,951,929
Corporate general and administrative (1,562,610) (1,393,170)
Depreciation and amortization (822,826) (901,425)
Interest expense (1,964,500) (3,088,990)
Loss on extinguishment of long-term debt (2,418,781) --
Gain on sale of investments -- 799,548
Gain on increase in fair value of derivative
financial instruments 39,113 406,000
Interest income 88,856 167,392
Other non-operating expense (60,070) (55,499)
Income tax expense (161,920) (1,176,291)
Discontinued operations (net of income taxes) -- 266,840
----------- -----------
Net income $242,881 $1,976,334
=========== ===========
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