Core Viewpoint - Beasley Broadcast Group reported a decline in net revenue and operating income for the second quarter of 2025, primarily due to softness in the traditional audio advertising market, although there was growth in high-margin digital revenue [3][4][7]. Financial Performance - Net revenue for the three months ended June 30, 2025, was $53.0 million, a decrease of 12.3% from $60.4 million in the same period of 2024 [2][3]. - Operating income was $2.9 million, down from $5.4 million year-over-year, attributed to a $7.4 million decline in net revenue [4][5]. - The company reported a net loss of approximately $0.2 million, or $0.09 per diluted share, compared to a net loss of $0.3 million, or $0.18 per diluted share, in the prior year [5][23]. - Adjusted EBITDA was $4.7 million, down from $8.8 million in the second quarter of 2024 [6][23]. Revenue Breakdown - Digital revenue increased by 1.3% year-over-year to $13.2 million, accounting for 25% of total revenue [8][9]. - Local revenue, including digital packages sold locally, represented 76% of net revenue [8]. - Revenue from new business accounted for 14% of net revenue, down from 17% in Q2 2024 [8]. Strategic Focus - The company is shifting focus from agency-driven business to more scalable and profitable direct revenue streams, emphasizing high-margin digital offerings [3][7]. - Management highlighted the importance of disciplined capital and cost management while investing in differentiated content and digital infrastructure [7][9]. Operational Changes - Beasley announced the pending sales of WPBB in Tampa and five stations in Ft. Myers as part of efforts to streamline its portfolio [9]. - The digital segment operating margin was reported at 27% [8]. Market Context - The decline in revenue reflects ongoing challenges in the traditional audio advertising market, which has been impacted by broader economic conditions [3][4].

Core Viewpoint - Beasley Broadcast Group, Inc. will report its second quarter financial results for 2025 on August 12, 2025, and will host a conference call to discuss these results [1]. Group 1: Financial Reporting - The company will announce its financial results before the market opens on August 12, 2025 [1]. - A conference call and webcast will take place at 11:00 a.m. ET on the same day to review the results [1]. Group 2: Accessing the Conference Call - Interested parties can join the conference call by dialing (800) 715-9871 or +1 (646) 307-1963, using conference ID 1613596 [2]. - A live webcast will also be available on the company's website, with a replay accessible for five days post-event [2]. Group 3: Analyst Engagement - Questions from analysts, institutional investors, and debt holders can be submitted via email until 9:00 a.m. ET on August 12, 2025 [3]. - Management will address as many questions as possible during the conference call, provided they are not covered in prepared remarks [3]. Group 4: Company Overview - Beasley Broadcast Group, Inc. was founded in 1961 and owns 54 AM and FM stations across 10 large- and mid-size markets in the United States [4]. - The company's radio stations reach nearly 17 million unique consumers weekly through various platforms, including over-the-air, online, and mobile devices [4].

Financial Performance - Net revenue for the three months ended March 31, 2025, decreased by $5.5 million, or 10.1%, compared to the same period in 2024, totaling $48.9 million[53]. - Audio revenue decreased by $5.3 million, or 12.1%, primarily due to a decrease in agency revenue, while digital revenue remained relatively stable[55]. - The net loss for the three months ended March 31, 2025, was $2.7 million, compared to a net income of approximately $8,000 for the same period in 2024, marking a substantial decline[59]. Operating Expenses - Operating expenses decreased by $4.0 million, or 8.1%, during the same period, with audio operating expenses down by $2.0 million and digital operating expenses down by $2.0 million[56]. - Interest expense decreased significantly by $2.2 million, or 39.5%, due to the amortization of a deferred interest premium from a debt restructure[57]. Tax and Dividend - The effective tax rate for the three months ended March 31, 2025, was 37%, compared to 104% for the same period in 2024, influenced by state income taxes and non-deductible expenses[58]. - The company has suspended future quarterly dividend payments until it is determined that resumption is in the best interest of stockholders[61]. Debt and Restructuring - The company completed an exchange of $194.7 million of prior notes for new senior secured second lien notes and common stock, representing 72.9% of the aggregate principal amount outstanding[63]. - The company incurred approximately $6.0 million in debt restructuring costs, primarily consisting of legal fees and financial advisory services[65]. - The carrying amount of the debt was reduced by the fair value of shares issued to holders of Prior Notes, amounting to $2.2 million[65]. - The company capitalized approximately $2.6 million in fees related to the debt restructuring[65]. Liquidity and Cash Flow - The company’s primary sources of liquidity include internally generated cash flow and cash on hand, with needs for working capital, debt service, and capital expenditures[60]. - The company expects to have sufficient liquidity and capital resources to meet financial obligations for the next 12 months[68]. - Future liquidity needs are expected to be met through internally generated cash flow and other sources[67]. - Net cash used in operating activities decreased from $4.0 million in Q1 2024 to $3.5 million in Q1 2025, with a $3.1 million decrease in cash paid for operating expenses[71]. - Net cash provided by investing activities in Q1 2025 was $1.9 million, down from $5.1 million in Q1 2024, with proceeds of $2.7 million from property and equipment dispositions[72]. - The net increase in cash and cash equivalents was a decrease of $1.5 million in Q1 2025 compared to an increase of $1.0 million in Q1 2024[71]. Stock Activity - The company repurchased 1,220 shares of Class A Common Stock for approximately $9,000 during the three months ended March 31, 2025[66]. - The company has no off-balance sheet arrangements as of March 31, 2025[69].

Financial Performance - Beasley Broadcast Group reported first quarter revenue of $48.9 million, a decrease of 10.1% from $54.4 million in the same period last year[4]. - The company experienced an operating loss of $2.0 million in Q1 2025, compared to an operating loss of $1.1 million in Q1 2024, primarily due to a $5.5 million reduction in net revenue[7]. - Net loss for the first quarter was approximately $2.7 million, or $1.50 per diluted share, compared to a net income of $8 thousand, or $0.01 per diluted share, in Q1 2024[9]. - Total net revenue for Q1 2025 was $48,912,465, down 10.8% from $54,380,346 in Q1 2024[34]. - Same station net revenue decreased to $48,912,465 from $53,481,347, reflecting a decline of 8.7% year-over-year[34]. - Audio net revenue decreased to $38,153,370 from $43,428,127, a decline of 12.1% year-over-year[35]. - Digital net revenue for Q1 2025 was $10,759,095, slightly down from $10,952,219 in Q1 2024[36]. Adjusted EBITDA and Operating Expenses - Adjusted EBITDA increased to $1.1 million in Q1 2025 from $0.9 million in Q1 2024, reflecting benefits from strategic streamlining initiatives despite revenue shortfalls[10]. - Adjusted EBITDA for Q1 2025 was $1,134,792, an increase of 28.2% compared to $884,877 in Q1 2024[32]. - Operating expenses for Q1 2025 were $45,241,261, down 8.1% from $49,240,998 in Q1 2024[34]. - Same station audio operating expenses were $36,394,976, down from $38,319,415, indicating a reduction of 5.0%[35]. - Same station digital operating expenses decreased to $8,846,285 from $9,495,226, a reduction of 6.9%[36]. Revenue Composition - Digital revenue accounted for 22% of net revenue, with a year-over-year increase of 6% to $10.8 million on a same-station basis[6]. - Revenue from new business represented 18% of net revenue, indicating growth in advertiser engagement[7]. - Local revenue, including digital packages sold locally, constituted 71% of total net revenue[7]. Cash and Assets - The company reported a decline in cash and cash equivalents to $12.2 million as of March 31, 2025, down from $13.8 million at the end of 2024[28]. - Total assets decreased to $539.3 million from $549.2 million at the end of 2024[28]. Strategic Initiatives - Beasley aims to unlock margin expansion and accelerate digital evolution while navigating short-term market challenges[11]. - The company incurred severance expenses of $889,470 and non-recurring expenses of $494,961 in Q1 2025[32].

Financial Data and Key Metrics Changes - Total net revenue for Q1 was $48.9 million, down 10.1% year over year, but down 8.5% on a same station basis, reflecting early progress in stabilizing revenue trends amid market volatility [9][10] - Total operating expenses were $45.2 million, down nearly $4 million or 8.1% compared to the prior year, indicating effective cost management [17][19] - Adjusted EBITDA for Q1 was $1.1 million, up 28% from $900,000 in the prior year, showcasing improved profitability despite revenue decline [19][20] Business Line Data and Key Metrics Changes - Digital revenue accounted for 22% of total revenue, with digital segment operating income growing from $100,000 in Q1 2024 to $1.9 million in Q1 2025, highlighting the success of digital product margin optimization [5][24] - Consumer services remained the largest revenue category, accounting for 30% of total revenue, but declined 15% year over year, with legal services growing nearly 5% and HVAC growing 12% [10][11] - National revenue, excluding political, declined 12.7%, while local direct revenue increased by 0.3% year over year, indicating resilience in direct advertiser relationships [14][15] Market Data and Key Metrics Changes - The advertising environment remains cautious, with overall demand under pressure and year-over-year declines consistent with broader industry trends [10] - Foreign automotive revenue was up 7.5%, but domestic automotive declined 5%, reflecting market concerns and shifting inventory dynamics [12][13] - Local agency revenue declined 19.9% year over year, while local direct revenue's growth reflects the strength of local relationships [14][15] Company Strategy and Development Direction - The company aims to accelerate digital growth, improve revenue quality, and execute with discipline, focusing on high-margin digital products and advertiser relationships [4][6] - A landmark multiyear partnership with the University of Michigan Athletics was established, enhancing the company's omnichannel sports strategy [6][7] - The digital transformation is seen as a long-term engine for value creation, with ongoing investments in content, technology, and audience development [22][29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macroeconomic challenges but emphasized a commitment to cost management and strategic product realignment to protect margins [34] - Revenue is currently pacing down 10% in Q2, primarily due to continued macroeconomic pressure, but proactive measures are being taken to offset these headwinds [34] - The company remains focused on building sustainable advertiser relationships and optimizing its digital portfolio for future growth [17][34] Other Important Information - The company ended Q1 with $12.2 million in cash on hand, down from $13.8 million at the end of fiscal year 2024, reflecting ongoing financial management efforts [20] - Capital expenditures were $800,000 in the quarter, slightly down from $900,000 in the prior year [21] Q&A Session Summary Question: Update on cost savings initiatives - The company has realized the full amount of cost reductions implemented in 2024 in Q1, with an additional $1.3 million in cuts made in Q1, expected to impact Q2 results [35] Question: National revenue performance - National revenue is weaker in 2024 compared to the previous year, with Boston experiencing declines while Philadelphia and New Jersey showed positive growth [36] Question: M&A discussions and opportunities - There were multiple discussions earlier in the year regarding M&A, but uncertainty in the economy has softened these discussions; the company remains open to beneficial swaps [37]

Financial Data and Key Metrics Changes - Total net revenue for Q1 was $48.9 million, down 10.1% year over year, but down 8.5% on a same station basis, reflecting early progress in stabilizing revenue trends amid market volatility [9][10] - Total operating expenses were $45.2 million, down nearly $4 million or 8.1% compared to the prior year, indicating effective cost management [17][19] - Adjusted EBITDA for Q1 was $1.1 million, up 28% from $900,000 in the prior year, showcasing improved profitability despite revenue decline [19][20] Business Line Data and Key Metrics Changes - Digital revenue accounted for 22% of total revenue, with digital segment operating income growing from $100,000 in Q1 2024 to $1.9 million in Q1 2025, highlighting the success of digital product margin optimization [5][24] - Consumer services remained the largest revenue category, accounting for 30% of total revenue, but declined 15% year over year, with legal services growing nearly 5% and HVAC growing 12% [10][11] - National revenue, excluding political, declined 12.7%, while local direct revenue increased by 0.3% year over year, indicating resilience in local advertiser relationships [14][15] Market Data and Key Metrics Changes - The automotive category saw mixed results, with foreign auto up 7.5% but domestic auto down 5%, reflecting broader market concerns [12][13] - Local agency revenue declined 19.9% year over year, while local direct revenue's growth reflects the strength of direct advertiser relationships [14][15] - Overall audio cume increased by 5.6%, with significant ratings gains in key markets like Charlotte and Detroit, both up 33% [30][31] Company Strategy and Development Direction - The company aims to accelerate digital growth, improve revenue quality, and execute with discipline, focusing on high-margin digital products and advertiser relationships [4][6] - A landmark multiyear partnership with the University of Michigan Athletics was established, enhancing the company's omnichannel sports strategy [6][7] - The digital transformation is seen as a long-term engine for value creation, with ongoing investments in content, technology, and audience development [22][29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing challenges in a cautious advertising environment, with revenue currently pacing down 10% in Q2 due to macroeconomic pressures [33][34] - The company remains committed to cost management while funding initiatives in digital, content, and technology to drive long-term shareholder value [34] - Management expressed confidence in the ability to unlock sustainable growth and margin expansion across digital platforms [29][34] Other Important Information - The company ended Q1 with $12.2 million in cash on hand, down from $13.8 million at the end of fiscal year 2024, reflecting ongoing financial management efforts [20] - Capital expenditures were $800,000 in the quarter, slightly down from $900,000 in the prior year [21] Q&A Session Summary Question: Update on cost savings initiatives - The company has realized the full amount of cost reductions implemented in 2024 in Q1, with an additional $1.3 million in cuts made in Q1, expected to impact Q2 results [35] Question: National performance in 2024 - National revenue is weaker in 2024 compared to the previous year, with Boston experiencing declines while Philadelphia and New Jersey showed positive growth [36] Question: M&A discussions and opportunities - There were multiple discussions earlier in the year regarding M&A, but uncertainty in the economy has softened these discussions; the company remains open to beneficial swaps [37]

Financial Data and Key Metrics Changes - Total net revenue for Q1 2025 was $48.9 million, down 10.1% year over year, but down 8.5% on a same station basis [4][8] - Total operating expenses were $45.2 million, a decrease of nearly $4 million or 8.1% compared to the prior year [16] - Adjusted EBITDA for Q1 2025 was $1.1 million, up 28% from $900,000 in the prior year period [19][20] - Operating income for Q1 2025 was a loss of $2 million, compared to a loss of $1.1 million in the prior year [18] Business Line Data and Key Metrics Changes - Digital revenue accounted for 22% of total revenue, with digital segment operating income growing from $100,000 in Q1 2024 to $1.9 million in Q1 2025 [4][24] - Consumer services remained the largest revenue category, accounting for 30% of total revenue, but declined 15% year over year [10] - Legal services grew nearly 5% year over year, while HVAC grew 12% year over year [11][12] - National revenue, excluding political, declined 12.7%, while local direct revenue increased by 0.3% year over year [14][15] Market Data and Key Metrics Changes - Overall demand remained under pressure, with year-over-year declines consistent with broader industry trends [10] - Foreign automotive revenue was up 7.5%, while domestic automotive revenue declined 5% [13] - Local agency revenue declined 19.9% year over year, but local direct revenue showed resilience [14][15] Company Strategy and Development Direction - The company aims to accelerate digital growth, improve revenue quality, and execute with discipline [3] - A focus on high-margin digital products and deepening advertiser relationships is central to the company's strategy [4][5] - The company is committed to disciplined execution and long-term financial performance while investing in high-impact content and digital products [6][24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing challenges in a cautious advertising environment and broader economic headwinds [10][32] - Revenue is currently pacing down 10% in Q2, primarily driven by continued macroeconomic pressure [32] - The company remains focused on cost management while funding initiatives in digital, content, and technology [33] Other Important Information - The company ended Q1 2025 with $12.2 million in cash on hand, down from $13.8 million at the end of fiscal year 2024 [20] - Capital expenditures were $800,000 in the quarter compared to $900,000 in the prior year [21] Q&A Session Summary Question: Update on cost savings initiatives - The company has realized the full amount of cost reductions implemented in 2024 in Q1, with an additional $1.3 million in cuts made in Q1 [34] Question: National performance in 2024 - National revenue is weaker in 2024 compared to the previous year, with Boston down consistent with overall declines, while Philadelphia and New Jersey saw double-digit growth [35] Question: M&A discussions and opportunities - There have been discussions regarding M&A, but uncertainty in the economy has softened some of these discussions; the company remains open to evaluating beneficial swaps [36]

Financial Performance - Beasley Media Group's total net revenue for Q1 2025 was $489 million[43] - The company's SOI (Station Operating Income) for Q1 2025 was $37 million[43] - Adjusted EBITDA for Q1 2025 was $11 million, with an adjusted EBITDA margin of 23%[43,47] - Corporate G&A expense for Q1 2025 was $40 million, including $05 million in severance and other one-time expenses[43] - Cash and cash equivalents totaled $122 million[43] Revenue Mix - Audio revenue for Q1 2025 was $382 million[21] - Digital revenue for Q1 2025 was $108 million, representing 22% of total net revenue[21] - Same-station digital revenue grew by 6% year-over-year[21] Digital Strategy - 49% of Q1 2025 digital sales were from Third-Party Inventory (TPP), while 51% were from Owned & Operated (O&O)[38,40] Audience Reach - Beasley's audio stations reach nearly 18 million listeners weekly across key markets[31] - The company has 150 million average weekly audience size for AM/FM stations, 31 million average monthly downloads for podcasts, and 26 million average unique streamers[13]

Core Viewpoint - Beasley Broadcast Group reported a decline in net revenue and an operating loss for the first quarter of 2025, primarily due to a soft advertising market and the closure of certain divisions, despite some growth in digital revenue and strategic cost management efforts [1][3][5]. Financial Performance - Net revenue for the three months ended March 31, 2025, was $48.9 million, a decrease of 10.1% from $54.4 million in the same period of 2024 [2][3]. - The operating loss increased to $2.0 million in Q1 2025 from a loss of $1.1 million in Q1 2024, driven by a $5.5 million reduction in net revenue [4]. - The net loss for the first quarter of 2025 was approximately $2.7 million, or $1.50 per diluted share, compared to a net income of $8 thousand, or $0.01 per diluted share, in Q1 2024 [5][21]. - Adjusted EBITDA for Q1 2025 was $1.1 million, up from $0.9 million in Q1 2024, reflecting the benefits of strategic streamlining initiatives [6]. Revenue Breakdown - Revenue from new business accounted for 18% of net revenue, while local revenue, including digital packages sold locally, represented 71% of total revenue [7]. - Digital revenue was $10.8 million, comparable to the first quarter of 2024, but increased by 6% year-over-year on a same-station basis, accounting for 22% of net revenue [7][8]. - The digital segment operating margin was reported at 18%, indicating a strong performance in this area [8]. Strategic Initiatives - The company emphasized its ongoing transformation and resilience in its core strategy, focusing on cost management and digital business growth to navigate macroeconomic challenges [7][8]. - Management expressed optimism about the scalability of its digital platform and the impact of strategic investments on long-term value creation for shareholders [8].

Financial Position - As of December 31, 2024, the company's FCC licenses represented 71% of total assets, indicating potential future impairment risks [106]. - The company had long-term debt of $220.1 million and equity of $147.2 million as of December 31, 2024, highlighting a substantial debt-to-equity ratio [107]. Dividend Policy - The company has suspended future quarterly dividend payments, which will depend on future operations, earnings, and capital requirements [108]. Revenue Sources and Risks - Stations located in Florida contributed 14% of net revenue in 2024, exposing the company to risks from hurricanes and extreme weather [110]. - The company relies on third-party contracts for distribution, which could be disrupted by various events, potentially affecting operating results [111]. Cybersecurity Concerns - Cybersecurity threats, including phishing and ransomware attacks, pose risks to the company's financial condition and operations [114]. Shareholder Control - The Beasley family controls 92% of the total voting power of the company's common stock, which may conflict with the interests of other shareholders [125]. - The Beasley family controls a significant portion of Class B and Class A Common Stock, impacting potential changes in control of the Company [130]. - Future sales of Class A Common Stock by the Beasley family could adversely affect its market price and complicate capital raising efforts [127]. Operational Challenges - The company faces challenges in integrating acquired stations, which may impact financial performance and operational efficiency [124]. - The company’s ability to attract and retain key personnel is critical for competitiveness, with potential losses to competing media entities [121]. Regulatory and Market Risks - The Company faces regulatory limitations on ownership and control transfers, which may adversely affect the trading price of Class A Common Stock [130]. - There may be a lack of an active market for Class A Common Stock, leading to potential price volatility and execution issues for investors [131]. - Historical fluctuations in stock price and trading volume may not correlate with the Company's operational performance [131]. - The Company’s operating results may fall below public market analysts' expectations, potentially leading to a significant decrease in stock price [131].