Revenue Performance - Net revenue for the three months ended September 30, 2024, decreased by $1.9 million (3.2%) to $58.19 million compared to $60.12 million for the same period in 2023[74] - Audio revenue decreased by $1.4 million (3.0%) to $46.89 million, primarily due to a decrease in local agency revenue and the disposition of WJBR-FM[75] - Digital revenue increased slightly by $0.12 million (1.1%) to $11.30 million, remaining comparable to the previous year[75] - Net revenue decreased by $8.4 million (4.6%) from $181.4 million in the nine months ended September 30, 2023, to $173.0 million in the same period of 2024[84] - Audio revenue decreased by $8.5 million (5.8%) primarily due to a decrease in local agency revenue and the sale of WJBR-FM[86] - Digital revenue increased by $1.8 million (5.4%) due to continued growth in the digital segment[86] Operating Expenses - Operating expenses decreased by $0.2 million (0.3%) to $49.95 million, with audio operating expenses increasing by $0.6 million (1.5%) due to workforce reductions[76] - Corporate expenses decreased by $0.2 million (4.4%) to $4.30 million, primarily due to an increase in digital expenses allocated to operating expenses[77] - Operating expenses decreased by $3.6 million (2.3%) from $152.1 million in the nine months ended September 30, 2023, to $148.5 million in 2024[84] Net Loss and Impairment - The company reported a net loss of $3.56 million for the three months ended September 30, 2024, a decrease of $63.98 million (94.7%) compared to a net loss of $67.54 million in the same period in 2023[74] - FCC licenses impairment losses were eliminated, resulting in a decrease of $78.20 million (100%) compared to the previous year[74] - Goodwill impairment losses decreased by $9.66 million (91.3%) to $0.92 million for the three months ended September 30, 2024[74] - Net loss for the nine months ended September 30, 2024, was $3.8 million compared to a net loss of $81.5 million for the same period in 2023, a reduction of $77.7 million (95.3%) [93] - FCC licenses impairment losses of $78.2 million recorded in Q3 2023 due to increased interest rates and decreased projected revenues[78] - Goodwill impairment loss of $10.6 million recorded in Q3 2023 related to the Philadelphia market cluster, attributed to increased discount rates and decreased projected revenues[79] Cash Flow and Liquidity - Net cash used in operating activities decreased to $2.2 million for the nine months ended September 30, 2024, from $5.0 million for the same period in 2023, reflecting an $11.5 million decrease in operating expenses[106] - Net cash provided by investing activities was $3.4 million for the nine months ended September 30, 2024, compared to net cash used of $2.8 million in the same period of 2023, including $6.0 million from the sale of an investment[107] - Net cash used in financing activities was approximately $90,000 for the nine months ended September 30, 2024, a significant decrease from $2.1 million in the same period of 2023[108] - The company expects to meet liquidity needs through internally generated cash flow, additional borrowings, and equity offerings[102] - The company believes it will have sufficient liquidity and capital resources to meet financial obligations for the next 12 months, although unexpected expenses could impact this outlook[103] - A total net increase in cash and cash equivalents was $1.1 million for the nine months ended September 30, 2024, compared to a net decrease of $9.9 million in the same period of 2023[106] Stock and Corporate Actions - The company executed a 1-for-20 reverse stock split on September 23, 2024, affecting the Class A and Class B Common Stock without changing the par value[56] - The board of directors has suspended future quarterly dividend payments until it is determined that resumption is in the best interest of stockholders[95] - The company entered into a common stock purchase agreement for the issuance of 56,864 shares at an offering price of approximately $12.31 per share, resulting in gross proceeds of $700,000[100] - The company may repurchase shares to fund withholding taxes related to restricted stock units, having repurchased 6,684 shares for approximately $90,000 during the nine months ended September 30, 2024[101] - The company may seek to repurchase or redeem existing notes depending on market conditions and liquidity requirements[101] Tax and Interest - Interest expense decreased by $2.0 million (10.1%) due to repurchases of Existing Notes throughout 2023[91] - Effective tax rate was approximately (24%) for the nine months ended September 30, 2024, compared to (32%) for the same period in 2023[92] Off-Balance Sheet Arrangements - There were no off-balance sheet arrangements as of September 30, 2024[104]

Financial Data and Key Metrics Changes - Total net revenue for Q3 2024 was $58.2 million, reflecting a decline of 3.2% compared to the previous year when adjusted for divestitures [9][17] - Same-station revenue increased by 0.5% for Q3, with a year-to-date decline of 1.6% [9][17] - Operating income for Q3 increased by 101.4% year-over-year, from a negative $85.5 million to a positive $1.2 million [20] - Interest expense decreased by $353,000 year-over-year to $6.1 million, reflecting benefits from debt reductions [21] Business Line Data and Key Metrics Changes - Digital segment revenue grew by 1.1% for the quarter, with same-station digital revenue increasing by 11.7% [12][24] - Same-station over-the-air local revenue decreased by 8.9%, driven by a 6.9% decline in local agency business [14] - Political revenue for the quarter was $2.7 million, bringing year-to-date political revenue to $3.7 million, up 23% from the same period in 2020 [11] Market Data and Key Metrics Changes - National advertising revenue was down 16% excluding political contributions, with same-station national revenue up 10.7% due to political spending [13] - The auto category saw an 11% year-over-year decline, representing 7.9% of total Q3 revenue [19] Company Strategy and Development Direction - The company is focused on improving its capital structure, having successfully completed a debt reduction of $47 million and extending maturities to August 2028 [7] - A reverse stock split was executed at a ratio of 1 for 20 to maintain NASDAQ listing and enhance share investability [8] - The company aims to grow digital revenue and has made strategic reductions in operating expenses projected to save over $5 million annually [27] Management's Comments on Operating Environment and Future Outlook - Management noted that advertisers are hesitant to book prior to election results, impacting national advertising [29] - The company expects revenue to be up in Q4, with pacing in the mid-single digits as of the call date [27][30] Other Important Information - The company experienced operational challenges due to Hurricane Halen, but successfully provided community support during the crisis [26] - The company ended Q3 with cash on hand of $27.8 million, down from $33.3 million at the end of Q2 2024 [22] Q&A Session Summary Question: Are you seeing any resumption in national advertising in Philadelphia and Boston? - Management indicated that there has not been a resumption yet, as advertisers are hesitant to book until after the election [29] Question: Post the exchange, how do you think about liquidity and the potential for more bond buybacks? - The company is focused on maintaining a minimum cash position but will seek opportunities for opportunistic bond buybacks [30] Question: When do you foresee year-over-year comps going positive again? - Management expects revenue to be up in Q4, with same-station revenue pacing up in the mid-single digits [30]

Core Viewpoint - Beasley Broadcast Group, Inc. will report its third quarter financial results for 2024 on November 5, 2024, and will host a conference call to discuss these results [1]. Company Overview - Beasley Broadcast Group is a multi-platform media company primarily operating radio stations across the United States, offering integrated marketing solutions to local and national advertisers [4]. - The company owns and operates 57 AM and FM stations in various large- and mid-size markets, including cities like Atlanta, Boston, and Philadelphia [4]. - Approximately 20 million consumers engage with the company's radio stations weekly through various platforms, including over-the-air, online, and mobile devices [4].

Core Viewpoint - Beasley Broadcast Group, Inc. has successfully completed an exchange offer for its existing senior secured notes, alongside a cash tender offer and a new notes issuance, aimed at restructuring its debt and improving financial flexibility [1][2]. Group 1: Exchange Offer Details - Approximately $194.7 million of existing notes were exchanged for new 9.200% senior secured notes due August 1, 2028, at an exchange ratio of 95.0% [2]. - Holders received a pro rata share of 179,384 shares of Class A Common Stock and a consent fee of $5.00 per $1,000 principal amount of existing notes tendered [2]. - The company exercised an option to increase the cash paid to exchanging holders by a pro rata portion of $700,000, from a total of $3.0 million available for this purpose [3]. Group 2: Tender Offer and New Notes - The company purchased $68.0 million of existing notes at a purchase price of 62.5% plus accrued and unpaid interest as part of the tender offer [2]. - A total of $30.9 million of new superpriority senior secured notes due 2028 were issued in the new notes offer [1][2]. Group 3: Support and Legal Counsel - A supporting holder, representing approximately 73% of existing notes, agreed to backstop the new notes offer and waived the minimum participation condition for the exchange offer [4]. - Latham & Watkins LLP served as legal counsel to the company, while Moelis & Company LLC acted as the exclusive financial advisor and dealer manager [4].

Core Points - Beasley Broadcast Group, Inc. has extended the Withdrawal Deadline, Expiration Date, and Subscription Form Delivery Date for its exchange offer, tender offer, and new notes offering to October 4, 2024 [1] - The Settlement Date has also been extended to October 8, 2024 [1] - Approximately 93% of outstanding Existing Notes have been submitted for tender or exchange as of September 30, 2024 [2] Offer Details - The extension was granted at the request of key holders of the existing 8.625% Senior Secured Notes due 2026 to amend their participation in the Offers [2] - The total number of Existing Notes tendered or exchanged by the requesting Holders is expected to remain unchanged after accommodating the request [2] - Full details of the Offers are available in the Exchange Offer Memorandum and its supplement, which existing noteholders are encouraged to read [3] Company Overview - Beasley Broadcast Group operates radio stations across the United States and provides integrated marketing solutions across audio, digital, and event platforms [8] - The company reaches approximately 20 million consumers weekly through its radio stations and engages with audiences via digital platforms [8]

Core Points - Beasley Broadcast Group, Inc. has initiated an exchange offer for its existing 8.625% Senior Secured Notes due 2026, allowing holders to exchange them for newly issued 9.200% Senior Secured Notes due August 1, 2028, along with shares of Class A common stock and a consent fee [1][2][13] - Approximately 73% of existing noteholders have agreed to support the exchange offer, which aims to improve the company's balance sheet and reduce leverage [2][3] - The company is also conducting a cash tender offer to purchase up to $68 million of existing notes at a price of 62.5% of their principal amount [2][12] Exchange Offer Details - The exchange offer allows existing noteholders to receive $950 in exchange notes, a pro rata share of 3,588,495 shares of Class A common stock, and a consent fee of $5 per $1,000 principal amount of existing notes tendered [1][13] - The tender offer will be funded with $12.5 million from the company's balance sheet and proceeds from new notes [3][4] - The exchange offer and tender offer are set to expire on October 2, 2024, with the settlement expected to occur shortly thereafter [14][15] Proposed Amendments - The company is soliciting consent from existing noteholders to adopt proposed amendments to the indenture governing the existing notes, which would eliminate most restrictive covenants and certain events of default [5][6] - The proposed amendments require the consent of a majority of existing noteholders for certain changes and two-thirds for the release of liens on collateral [6][12] New Notes Offer - The company plans to offer $30 million in new 11.000% Superpriority Senior Secured Notes due August 1, 2028, which will be backstopped by a majority holder of the existing notes [4][7] - Recipients of the new notes will receive a participation premium of 3.0% of the aggregate principal amount purchased [4][7] Financial Overview - The total outstanding principal amount of the existing notes is $267 million, with the company aiming to issue approximately $189.05 million of exchange notes assuming full participation [9][13] - The cash consideration for the tender offer is set at $625 per $1,000 principal amount of existing notes [12][13]

Revenue Performance - Net revenue decreased by $3.0 million, or 4.8%, from $63.5 million in Q2 2023 to $60.4 million in Q2 2024[67] - Audio revenue decreased by $3.0 million, or 6.0%, primarily due to a decrease in local agency and direct revenue[67] - Digital revenue increased by $0.7 million, or 5.7%, driven by continued growth in the digital segment[67] - Net revenue decreased by $6.4 million (5.3%) to $114.8 million for the six months ended June 30, 2024, compared to the same period in 2023[72] - Audio revenue declined by $7.0 million (7.2%) primarily due to a decrease in local agency and direct revenue, while digital revenue increased by $1.7 million (7.5%) due to growth in the digital segment[73] Operating Expenses - Operating expenses decreased by $2.0 million, or 3.9%, from $51.3 million in Q2 2023 to $49.3 million in Q2 2024[68] - Operating expenses decreased by $3.4 million (3.3%) to $98.6 million for the six months ended June 30, 2024, with audio operating expenses down by $1.4 million (1.7%) and other operating expenses down by $2.0 million (100.0%) due to the termination of esports operations[74] - Corporate expenses decreased by $0.5 million, or 11.9%, primarily due to an increase in digital expenses allocated to operating expenses[69] - Digital operating expenses decreased by $0.9 million, or 8.4%, due to expense management in the digital segment[68] Financial Performance - Net loss for Q2 2024 was $0.3 million compared to a net loss of $10.4 million in Q2 2023, reflecting improved financial performance[70] - Net loss for the six months ended June 30, 2024, was $0.3 million, a significant improvement from a net loss of $14.0 million in the same period in 2023[77] Cash Flow and Investments - Net cash provided by operating activities increased to $2.6 million for the six months ended June 30, 2024, compared to approximately $24,000 in the same period in 2023[84] - Net cash provided by investing activities included proceeds of $6.0 million from the sale of an investment, offset by $2.0 million in capital expenditures[85] - The company recorded a gain of $6.0 million from the sale of an investment in Broadcast Music, Inc. on March 8, 2024[75] Debt and Interest - Interest expense decreased by $0.6 million, or 9.4%, due to repurchases of the Notes throughout 2023[69] - Interest expense decreased by $1.6 million (12.3%) to $11.7 million, attributed to repurchases of the Notes throughout 2023[75] Dividend and Liquidity - The company has suspended future quarterly dividend payments until it is determined that resumption is in the best interest of stockholders[79] - The company expects to meet future liquidity needs through internally generated cash flow, additional borrowings, or equity offerings[82] Taxation - Effective tax rate was approximately (7)% for Q2 2023 and (21)% for Q2 2024, differing from the federal statutory rate of 21%[69] Impairment - Impairment loss of $10.0 million was recorded in Q2 2023 related to the FCC license for WJBR-FM[69]

Revenue Performance - Beasley Broadcast Group reported second quarter revenue of $60.4 million, a decrease of 4.8% year-over-year from $63.5 million[2]. - Net revenue for the three months ended June 30, 2024, was $60,435,657, a decrease of 4.8% from $63,461,723 for the same period in 2023[17]. - Local revenue, including digital packages sold locally, accounted for 72.8% of net revenue[3]. Digital Revenue - Digital revenue grew 5.7% year-over-year to $13.0 million, accounting for 21.5% of net revenue, with a 10.4% increase on a same station basis[3]. - Beasley aims for digital revenue to represent 20% to 25% of total revenue for the full year 2024[6]. - Net digital revenue for the three months ended June 30, 2024, was $13,005,577, an increase from $12,301,269 in the same period of 2023[24]. Operating Income and Expenses - Operating income improved to $5.4 million in Q2 2024, compared to an operating loss of $4.5 million in Q2 2023[4]. - Operating expenses for the three months ended June 30, 2024, were $55,060,458, down 19.1% from $67,969,578 in the prior year[17]. - Adjusted EBITDA increased by 11.4% to $8.8 million, up from $7.9 million in Q2 2023, primarily due to lower operating and corporate expenses[5]. Net Loss and Financial Position - Net loss decreased significantly to $0.3 million, or $0.01 per diluted share, from a net loss of $10.4 million, or $0.35 per diluted share, in the prior year[4]. - The company reported a net loss of $(276,021) for the three months ended June 30, 2024, compared to a net loss of $(10,430,629) in the same period last year[23]. - Cash and cash equivalents increased to $33,294,000 as of June 30, 2024, compared to $26,734,000 at the end of 2023[18]. Customer Acquisition and Political Revenue - Revenue from new customers grew 16.5% year-over-year, indicating successful customer acquisition efforts[3]. - The company generated $586,000 in political revenue during the quarter[3]. Future Outlook - The company expects to achieve $10 million in annualized expense savings through aggressive expense management initiatives[6]. - Long-term debt remained stable at $264,874,000 as of June 30, 2024, compared to $264,203,000 at the end of 2023[18].

Financial Data and Key Metrics - Q2 2024 total revenue was $60.4 million, down 4.8% year-over-year on an actual basis, but same-station revenue declined only 2% [4] - Digital revenue grew 10.2% year-over-year, now accounting for 21.5% of total revenue, up from 19.4% in Q2 2023 and 16.5% in Q2 2022 [4] - Adjusted EBITDA increased 11.4% to $8.8 million in Q2 2024 [8] - Operating expenses declined 3.9% or $2 million, including $1.3 million in severance costs [7][8] - Same-station SOI increased by $60,000 to $12.6 million, excluding severance costs [8] - Total debt at the end of Q2 was $267 million, down from $300 million at the beginning of 2021 [13] Business Line Performance - Digital revenue growth remains a priority, with digital SOI at $3.1 million and a margin of 24% for the quarter [16] - Political revenue for Q2 was $586,000, exceeding the budget by 72% and up significantly from $228,000 in Q2 2020 [5] - National revenue showed signs of stabilization, with same-station national revenue up 7.3% and actual national revenue up 6.4% year-over-year [6] - Local spot revenue declined 10.9% year-over-year, driven by a 3% decline in local agency business and a 4.9% decline in local direct [6] - Sports betting revenue was $3.1 million, accounting for 5.6% of total revenue, with growth in Boston and Charlotte offset by declines in Philadelphia [11] Market Performance - Six markets, including Augusta, Charlotte, Fayetteville, Fort Myers, New Jersey, and Tampa, exceeded prior year Q2 revenues [9] - The company holds the top-rated station in key markets such as Boston, Charlotte, Detroit, Las Vegas, and Philadelphia, with strong Nielsen Audio PPM ratings [18] Strategy and Industry Competition - The company is shifting its revenue mix toward digital, aiming for digital to account for 20%-25% of total revenue in 2024 [5] - A strategic plan focuses on revenue growth, leverage reduction, free cash flow, and addressing the capital structure ahead of the Q1 2026 debt maturity [19] - The company is streamlining traditional business operations, expanding digital revenue streams, and focusing on corporate expense management [19] - A $6.7 million expense reduction initiative in May 2024 is projected to save nearly $10 million annually, achieved through headcount reductions and operational consolidation [20] Management Commentary on Operating Environment and Outlook - Management noted continued softness in ad-reliant businesses, particularly in local markets, reflecting broader economic challenges [6] - The company expects a robust second half of 2024, driven by strong political spending and continued digital expansion [5][21] - Management remains optimistic about growth prospects, particularly in digital and political revenue streams [21] Other Important Information - The company closed its white-label agency, Guarantee Digital, transferring 75% of its revenue to the in-house agency Digital Direct, expected to increase the bottom line by $1 million [16] - The company exited its esports content initiative due to profitability concerns and a focus on reducing leverage [17] - A new head of digital content marketing was hired to support the growth of digital revenue streams [18] Q&A Session Question: Any discussions with creditors about the February 2026 bond maturity? - The company is laser-focused on addressing the Q1 2026 maturity and will provide more details in the near term [24] Question: Are there more assets that could be sold? - The company is open to selling assets at an attractive and deleveraging price [26] Question: Progress on the $10 million cost savings program? - The company realized $2 million in cost improvements in Q2, with the full benefit of the savings expected in future quarters [27]

Q 2 2 0 2 4 E A R N I N G S P R E S E N TAT I O N A U G U S T 2024 Forward-Looking Statements and Non- DisclaimerGAAP Financial Measures This presentation includes certain financial measures that have not been prepared in a manner that complies with generally accepted accounting principles in the United States ("GAAP"), including, without limitation, EBITDA, Station Operating Income ("SOI") (collectively, the "non-GAAP financial measures"). These non-GAAP financial measures are not measures of financial per ...