Beasley Broadcast Group, Inc. (NASDAQ:BBGI) Q4 2020 Results Earnings Conference Call February 11, 2021 11:00 AM ET Company Participants Caroline Beasley - Chief Executive Officer Marie Tedesco - Chief Financial Officer Conference Call Participants Operator Good morning and welcome to Beasley Broadcast Group's Fourth Quarter 2020 Conference Call. Before proceeding, I would like to emphasize that today's conference call and webcast will contain forward-looking statements about our future performance and resul ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Title of Each ClassTrading SymbolName of Each Exchange on which Registered Class A Common Stock, par value $0.001 per share BBGI Nasdaq Global Market FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 000-29253 BEASLEY BROADCAS ...

Beasley Broadcast Group, Inc. (NASDAQ:BBGI) Q3 2020 Earnings Conference Call November 3, 2020 11:00 AM ET Company Participants Caroline Beasley - CEO Marie Tedesco - CFO Conference Call Participants Operator Good morning and welcome to Beasley Broadcast Group's Third Quarter 2020 Conference Call. Before proceeding, I would like to emphasize that today's conference call and webcast will contain forward-looking statements about our future performance and results of operations that involve risks and uncertaint ...

Table of Contents Emerging growth company ☐ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 000-29253 BEASLEY BROADCAST GROUP, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 65-0960915 (State of Incorporatio ...

Financial Data and Key Metrics Changes - The company reported a 53.7% decrease in net revenue for Q2 2020, amounting to $30.4 million, down from $65.7 million in the prior year [10][12] - Operating income for Q2 2020 was approximately negative $17.6 million, compared to a positive $10.7 million in the same quarter last year [14] - Total outstanding debt as of June 30, 2020, was $273 million, an increase from $268.5 million at March 31, 2019 [15] Business Line Data and Key Metrics Changes - Consumer services remained the largest revenue category at 36%, with a year-over-year decline of 36.7% [12] - Retail revenue, representing around 16% of total revenue, declined by 61.2% [12] - The auto category saw a significant decline of nearly 69%, accounting for 8.6% of total revenue [12] Market Data and Key Metrics Changes - April revenue was down 60.4% year-over-year, May down 60.6%, and June down 43.7% [10] - Some markets, such as Augusta, Detroit, and Fayetteville, performed slightly better than others [10] Company Strategy and Development Direction - The company has focused on preserving liquidity and reducing operating expenses, with a total reduction of over $26 million planned for 2020 [6][21] - Digital revenue accounted for 13.9% of total revenue for the quarter, up from 7.4% in the previous year [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the pandemic but expressed optimism about month-over-month revenue improvements and robust political revenue expectations [8][18] - The company aims to reduce the percentage declines in net revenue sequentially through November [8] Other Important Information - The company has suspended future quarterly dividends and implemented salary reductions for executives and staff [6][7] - The esports segment generated $823,000 in revenue during the quarter, with ongoing initiatives to enhance audience engagement [10][17] Q&A Session Summary Question: Are the $26 million cost cuts permanent? - The majority of the $26 million cuts are permanent, but about 20% are based on temporary wage cuts and performance-related adjustments [21][22] Question: Thoughts on working capital and advertiser payments? - The company has made substantial expense cuts that will benefit working capital, and while accounts receivables are higher than normal, collections are in line or slightly better than projected [23]

PART I - FINANCIAL INFORMATION [Item 1. Condensed Consolidated Financial Statements](index=5&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements.) Beasley Broadcast Group reported an **$8.9 million net loss** in Q1 2020, driven by a **$6.8 million FCC license impairment** Condensed Consolidated Balance Sheet Highlights (Unaudited) | Account | March 31, 2020 ($) | December 31, 2019 ($) | | :--- | :--- | :--- | | Total current assets | $73,854,333 | $79,658,043 | | Total assets | $748,658,554 | $760,060,229 | | Total current liabilities | $45,963,738 | $53,192,459 | | Total liabilities | $474,280,516 | $475,588,271 | | Total equity | $274,378,038 | $284,471,958 | Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) | Account | Three Months Ended March 31, 2020 ($) | Three Months Ended March 31, 2019 ($) | | :--- | :--- | :--- | | Net revenue | $57,650,426 | $57,687,554 | | Operating income (loss) | ($7,144,030) | $6,809,578 | | Impairment losses | $6,804,412 | $0 | | Net income (loss) | ($8,946,163) | $1,353,263 | | Basic and diluted EPS ($) | ($0.32) | $0.05 | Condensed Consolidated Statements of Cash Flows (Unaudited) | Account | Three Months Ended March 31, 2020 ($) | Three Months Ended March 31, 2019 ($) | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,953,723 | $7,410,986 | | Net cash used in investing activities | ($4,193,430) | ($541,132) | | Net cash provided by (used in) financing activities | $2,070,737 | ($3,910,113) | | Net increase (decrease) in cash | ($168,970) | $2,959,741 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail COVID-19's impact, including a **$6.8 million FCC license impairment** and credit agreement amendments - The COVID-19 pandemic caused a rapid increase in advertising cancellations and reduced new sales, negatively impacting net revenue starting mid-March 2020[10](index=10&type=chunk) - In response to COVID-19, the company implemented expense controls, including compensation reductions and furloughs, and suspended future quarterly dividend payments[13](index=13&type=chunk)[15](index=15&type=chunk) - Due to COVID-19's economic impact, the company recorded a **$6.8 million impairment loss** on its FCC licenses in several market clusters[19](index=19&type=chunk)[20](index=20&type=chunk) - On June 30, 2020, the company amended its credit agreement to modify financial covenants, increase interest rates, and add fees, projecting compliance through June 30, 2021[42](index=42&type=chunk)[43](index=43&type=chunk) - A promissory note was amended on June 30, 2020, changing interest to include a **10% payment-in-kind component** and modifying principal repayment terms, including partial payment via stock issuance[45](index=45&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=14&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management discusses COVID-19's impact on Q1 2020, leading to an **$8.8 million net loss** from a **$6.8 million FCC license impairment** Results of Operations Comparison (Q1 2020 vs Q1 2019) | Financial Metric | Q1 2020 ($) | Q1 2019 ($) | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net revenue | $57,650,426 | $57,687,554 | ($37,128) | (0.1)% | | Operating expenses | $50,900,477 | $47,451,182 | $3,449,295 | 7.3% | | Impairment losses | $6,804,412 | $0 | $6,804,412 | N/A | | Net income (loss) | ($8,836,561) | $1,353,263 | ($10,189,824) | (753.0)% | - Net revenue remained flat as a decrease in non-political commercial advertising due to COVID-19 was offset by increases in political, digital, and esports revenue[78](index=78&type=chunk) - Operating expenses increased by **$3.4 million (7.3%)** due to higher digital advertising and esports expenses, and WDMK-FM acquisition costs[79](index=79&type=chunk) - Due to COVID-19's projected impact, the company amended its credit agreement on June 30, 2020, to avoid a breach of the First Lien Leverage Ratio covenant[51](index=51&type=chunk)[93](index=93&type=chunk) - The Board of Directors suspended future quarterly dividend payments in response to the COVID-19 pandemic to preserve liquidity[52](index=52&type=chunk)[88](index=88&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=24&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) This section is not applicable as the company qualifies as a smaller reporting company - Disclosure is not required for smaller reporting companies[111](index=111&type=chunk) [Item 4. Controls and Procedures](index=24&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded disclosure controls were effective as of March 31, 2020, with no material changes to internal control - The CEO and CFO concluded the company's disclosure controls and procedures were effective as of the reporting period end[112](index=112&type=chunk) - There were no material changes in internal control over financial reporting during Q1 2020[113](index=113&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=24&type=section&id=Item%201.%20Legal%20Proceedings.) The company is involved in incidental litigation, but management believes no proceedings will materially affect its financials - The company is not a party to any lawsuit or proceeding likely to have a material adverse effect on its financial condition or operations[113](index=113&type=chunk) [Item 1A. Risk Factors](index=25&type=section&id=Item%201A.%20Risk%20Factors.) Updated risk factors address COVID-19's material adverse effects, including potential for further impairment and covenant breaches - The COVID-19 pandemic has materially and adversely affected the company's operations, liquidity, and financial condition due to an advertising industry downturn[115](index=115&type=chunk)[116](index=116&type=chunk) - A **$6.8 million impairment loss** on FCC licenses was recorded in Q1 2020 due to COVID-19's impact, with increased risk of future impairments, especially in Boston and Charlotte[117](index=117&type=chunk)[118](index=118&type=chunk) - Decreased revenue from the pandemic increases the risk of failing to meet financial covenants under the credit facility, potentially leading to an event of default and debt acceleration[121](index=121&type=chunk)[122](index=122&type=chunk)[123](index=123&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=26&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) During Q1 2020, the company repurchased **7,581 shares** to fund withholding taxes for RSU vesting Share Repurchases in Q1 2020 | Period | Total Number of Shares Purchased | Average Price Paid per Share ($) | | :--- | :--- | :--- | | January 1 – 31, 2020 | 1,250 | $3.28 | | February 1 – 29, 2020 | 187 | $3.35 | | March 1 – 31, 2020 | 6,144 | $1.81 | - All shares purchased during the quarter were to fund withholding taxes for the vesting of restricted stock units and shares[126](index=126&type=chunk) [Item 3. Defaults Upon Senior Securities](index=26&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities.) No defaults upon senior securities were reported - No defaults upon senior securities were reported[127](index=127&type=chunk) [Item 4. Mine Safety Disclosures](index=26&type=section&id=Item%204.%20Mine%20Safety%20Disclosures.) This section is not applicable to the company's operations - This section is not applicable to the company's operations[127](index=127&type=chunk) [Item 5. Other Information](index=26&type=section&id=Item%205.%20Other%20Information.) No other material information is reported in this section - No other material information is reported in this section[127](index=127&type=chunk) [Item 6. Exhibits](index=27&type=section&id=Item%206.%20Exhibits.) This section lists exhibits filed with the report, including CEO and CFO certifications and XBRL data

Part I [Business](index=4&type=section&id=Item%201.%20Business) Beasley Broadcast Group operates US radio stations, generating advertising revenue, with a 2019 esports expansion, facing intense competition and FCC regulation - The company's primary business is operating radio stations in various US markets, with revenue mainly derived from advertising sales across audio, digital, and event platforms[7](index=7&type=chunk)[9](index=9&type=chunk) - In **2019**, the company diversified its operations by acquiring the Houston Outlaws, an esports team competing in the Overwatch League[10](index=10&type=chunk) - The radio broadcasting industry is highly competitive, with competition from other radio stations, digital audio streaming, satellite radio, television, and major digital platforms like Amazon, Apple, Facebook, and Google[11](index=11&type=chunk) - The business is subject to extensive regulation by the Federal Communications Commission (**FCC**), which governs station licenses, ownership limits, and program content[13](index=13&type=chunk)[14](index=14&type=chunk) - Company revenues are seasonal, typically lowest in the **first quarter**, and tend to be higher in even-numbered years due to political advertising, which is heaviest in the **fourth quarter**[48](index=48&type=chunk) - As of February 10, **2020**, the company employed **846** full-time and **592** part-time employees[49](index=49&type=chunk) [Risk Factors](index=10&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from economic sensitivity of advertising revenue, intense media competition, FCC license dependency, substantial debt, asset impairment, and family control - The company's advertising revenue is highly sensitive to economic conditions, as advertising is often a discretionary expense for businesses[54](index=54&type=chunk)[57](index=57&type=chunk) - The company faces intense competition for advertising revenue from other radio stations and a variety of other media, including digital, satellite, and television platforms[60](index=60&type=chunk)[61](index=61&type=chunk) - The business is dependent on federally-issued **FCC licenses**, which are renewable every **eight years**. Non-renewal or renewal with adverse conditions could materially harm the company[76](index=76&type=chunk) - As of December 31, **2019**, **FCC licenses** and **goodwill** represented **72%** of total assets, and a future impairment of these assets could adversely affect operating results[87](index=87&type=chunk) - The company has substantial debt (**$263.5 million** long-term debt vs. **$284.5 million** equity as of Dec 31, **2019**), which requires significant cash flow for debt service and includes restrictive covenants that may limit operational flexibility[88](index=88&type=chunk)[91](index=91&type=chunk) - A significant portion of revenue is generated from a few key markets. In **2019**, the Boston, Philadelphia, and Tampa-Saint Petersburg markets contributed **60.7%** of net revenue[84](index=84&type=chunk) - The company is controlled by its Chairman, George G. Beasley, and his family, who hold **59.3%** of the total voting power, which allows them to control stockholder votes and direct management and policies[114](index=114&type=chunk)[115](index=115&type=chunk) [Unresolved Staff Comments](index=18&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - There are no unresolved staff comments[123](index=123&type=chunk) [Properties](index=18&type=section&id=Item%202.%20Properties) The company owns or leases properties for its radio stations across the US, with several key locations leased from Beasley family-affiliated related parties - The company owns or leases properties for its radio station market clusters in locations such as Atlanta, Boston, Charlotte, Detroit, Philadelphia, and Tampa[124](index=124&type=chunk) - Several properties are leased from related parties, including entities controlled by George G. Beasley or held in trusts for the benefit of his family members[124](index=124&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk) [Legal Proceedings](index=19&type=section&id=Item%203.%20Legal%20Proceedings) The company is not party to any legal proceedings expected to have a material adverse effect on its financial condition or operations - The company is not currently party to any lawsuit or proceeding expected to have a material adverse effect on its financial condition or operations[128](index=128&type=chunk) [Mine Safety Disclosures](index=19&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[129](index=129&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=20&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's Class A common stock trades on NASDAQ, while Class B has no public market; in 2019, it paid $5.5 million in dividends and repurchased shares for tax purposes - The company's Class A common stock trades on the NASDAQ Global Market (**BBGI**), while Class B common stock has no established public trading market[131](index=131&type=chunk) - The company paid aggregate annual cash dividends of **$5.5 million** in **2019**. Future dividends are at the discretion of the board and are limited by the company's credit agreement[133](index=133&type=chunk) Share Repurchases in Q4 2019 | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | November 1 – 30, 2019 | 5,625 | $2.89 | | December 1 – 31, 2019 | 51,550 | $3.14 | - All shares purchased in **Q4 2019** were to fund withholding taxes in connection with the vesting of restricted stock units and shares of restricted stock[135](index=135&type=chunk) [Selected Financial Data](index=21&type=section&id=Item%206.%20Selected%20Financial%20Data) This section is not required for smaller reporting companies - Not required for smaller reporting companies[138](index=138&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2019, net revenue increased to $261.6 million and net income to $13.5 million, influenced by asset dispositions and impairment losses, with liquidity from cash flow and a $263.5 million credit facility, relying on critical accounting estimates and related-party transactions [Critical Accounting Estimates](index=23&type=section&id=Critical%20Accounting%20Estimates) The company's financial statements rely on critical accounting estimates, primarily for FCC licenses and goodwill valuation, which led to $12.4 million impairment losses in 2019 due to reduced revenue projections - As of December 31, **2019**, **FCC licenses** and **goodwill** represented **72%** of the company's total assets, making their valuation a critical accounting estimate[87](index=87&type=chunk) - The annual quantitative impairment test as of November 30, **2019**, resulted in impairment losses of **$12.4 million** for **FCC licenses** in the Atlanta, GA and West Palm Beach-Boca Raton, FL markets, primarily due to reduced projected revenue share[158](index=158&type=chunk) - The fair value of **FCC licenses** is estimated using a discounted cash flow model, with key assumptions including revenue growth rates (**0.4% - 1.5%**), market revenue shares (**0.6% - 44.3%**), operating income margins (**19.8% - 35.4%**), and a discount rate of **9.0%**[154](index=154&type=chunk)[156](index=156&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) In 2019, net revenue increased by 1.6% to $261.6 million and net income rose 107.5% to $13.5 million, primarily due to a $20.7 million gain on dispositions, partially offset by $13.7 million impairment losses Comparison of Results of Operations (2019 vs. 2018) | Financial Metric | 2018 | 2019 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net revenue | $257,494,599 | $261,554,114 | $4,059,515 | 1.6% | | Operating expenses | $195,752,948 | $201,107,084 | $5,354,136 | 2.7% | | Gain on dispositions | $0 | $20,657,360 | $20,657,360 | N/A | | Impairment losses | $0 | $13,657,941 | $13,657,941 | N/A | | Net income | $6,481,049 | $13,450,224 | $6,969,175 | 107.5% | - The increase in net revenue was primarily driven by an additional **$6.8 million** from the Philadelphia market cluster following the acquisition of WXTU-FM[163](index=163&type=chunk) - The company recorded a **$20.7 million** gain on dispositions in **2019** from the sale of land in Las Vegas and Boca Raton, and radio towers in Tampa and New Jersey[167](index=167&type=chunk) - Impairment losses of **$13.7 million** were recorded in **2019**, consisting of **$12.4 million** for **FCC licenses** and **$1.3 million** for an investment in LN2 DB[168](index=168&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is primarily from cash flow and a credit facility, with $263.5 million in long-term debt as of 2019, while net cash from operations decreased to $21.0 million - As of December 31, **2019**, the company had total long-term debt of **$263.5 million**, including a term loan, revolving credit facility, and a promissory note[181](index=181&type=chunk) - The credit facility includes a term loan with a **$239.0 million** balance and a revolving credit facility with a **$20.0 million** maximum commitment, of which **$11.0 million** was outstanding at year-end[174](index=174&type=chunk) - The credit agreement requires compliance with financial covenants, such as a maximum First Lien Leverage Ratio, which was **5.75x** for December 31, **2019**[176](index=176&type=chunk) Cash Flow Summary (2019 vs. 2018) | Cash Flow Activity | 2018 | 2019 | | :--- | :--- | :--- | | Net cash provided by operating activities | $24,394,480 | $20,991,224 | | Net cash used in investing activities | ($45,612,343) | ($4,955,046) | | Net cash provided by (used in) financing activities | $20,729,301 | ($10,821,835) | [Related Party Transactions](index=28&type=section&id=Related%20Party%20Transactions) The company engages in numerous related party transactions, primarily leasing properties and towers from Beasley family-affiliated entities, with 2019 rental expenses totaling approximately $1.2 million - The company leases numerous properties, including its principal executive offices, land, and radio towers, from entities controlled by or affiliated with the Beasley family[191](index=191&type=chunk)[194](index=194&type=chunk)[198](index=198&type=chunk) - In **2019**, rental expenses for these related party leases included **$0.2 million** to Beasley Broadcasting Management, LLC, **$0.7 million** to Beasley Family Towers, LLC, and **$0.2 million** to GGB Las Vegas, LLC[191](index=191&type=chunk)[194](index=194&type=chunk)[198](index=198&type=chunk) - The company recorded a **$1.3 million** impairment loss on its investment in LN2 DB, LLC, which is managed by a firm partially owned by a company director, after a study concluded its patents had no significant remaining market value[195](index=195&type=chunk)[323](index=323&type=chunk) [Quantitative and Qualitative Disclosures About Market Risks](index=29&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risks) This section is not required for smaller reporting companies - Not required for smaller reporting companies[201](index=201&type=chunk) [Financial Statements and Supplementary Data](index=30&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for 2019 and 2018, including balance sheets, income statements, cash flows, and detailed notes on accounting policies, acquisitions, debt, and lease accounting [Consolidated Balance Sheets](index=32&type=section&id=Consolidated%20Balance%20Sheets) As of December 31, 2019, total assets were $760.1 million, with $517.5 million in FCC licenses and $28.6 million in goodwill, against total liabilities of $475.6 million and equity of $284.5 million Consolidated Balance Sheet Highlights (as of Dec 31, 2019) | Category | Amount | | :--- | :--- | | **Assets** | | | Cash and cash equivalents | $18,648,171 | | FCC licenses | $517,529,167 | | Goodwill | $28,596,547 | | **Total Assets** | **$760,060,229** | | **Liabilities & Equity** | | | Long-term debt (net) | $248,712,452 | | **Total Liabilities** | **$475,588,271** | | **Total Stockholders' Equity** | **$284,538,540** | [Consolidated Statements of Comprehensive Income](index=33&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) For 2019, net revenue was $261.6 million, operating income $38.1 million, and net income $13.5 million, influenced by a $20.7 million gain on dispositions and $13.7 million impairment losses Income Statement Highlights (Year Ended Dec 31, 2019) | Metric | Amount | | :--- | :--- | | Net Revenue | $261,554,114 | | Operating Income | $38,118,390 | | Gain on dispositions | $20,657,360 | | Impairment losses | $13,657,941 | | Net Income Attributable to BBGI | $13,450,224 | | Basic EPS | $0.49 | [Consolidated Statements of Cash Flows](index=35&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In 2019, net cash from operations was $21.0 million, investing activities used $5.0 million (including acquisitions and capital expenditures offset by dispositions), and financing activities used $10.8 million, resulting in a $5.2 million cash increase Cash Flow Summary (Year Ended Dec 31, 2019) | Cash Flow Activity | Amount | | :--- | :--- | | Net cash provided by operating activities | $20,991,224 | | Net cash used in investing activities | ($4,955,046) | | Net cash provided by (used in) financing activities | ($10,821,835) | | **Net increase in cash and cash equivalents** | **$5,214,343** | [Notes to Consolidated Financial Statements](index=36&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, including 2019 ASC 842 adoption, significant transactions like esports and radio acquisitions, asset sales, debt structure, employee benefits, and related-party transactions - The company adopted the new lease accounting standard (**ASC 842**) on January 1, **2019**, resulting in the initial recording of a **$43.1 million** lease liability and **$38.8 million** in right-of-use assets[240](index=240&type=chunk) - In **2019**, the company acquired the Houston Outlaws esports team and WDMK-FM in Detroit, and completed sales of land and towers for proceeds of **$23.0 million**, resulting in gains of **$20.7 million**[241](index=241&type=chunk)[242](index=242&type=chunk)[244](index=244&type=chunk)[245](index=245&type=chunk) - Revenue is broken down into Commercial advertising (**$223.8M**), Digital advertising (**$20.3M**), and Other revenue (**$17.4M**) for **2019**[302](index=302&type=chunk) - As of December 31, **2019**, the company had commitments for rating services and sports broadcast rights totaling **$127.7 million**, with future minimum payments extending beyond **2024**[325](index=325&type=chunk)[326](index=326&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=56&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[331](index=331&type=chunk) [Controls and Procedures](index=56&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2019, with no material changes during the fourth quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective at the reasonable assurance level as of December 31, **2019**[333](index=333&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of the end of the fiscal year, based on the **COSO framework**[336](index=336&type=chunk) [Other Information](index=57&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None[339](index=339&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=57&type=section&id=Item%2010.%20Directors,%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, executive officers, and corporate governance is incorporated by reference from the 2020 Proxy Statement - Information regarding directors, executive officers, and corporate governance is incorporated by reference from the **2020 Proxy Statement**[339](index=339&type=chunk) [Executive Compensation](index=58&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the 2020 Proxy Statement - Information regarding executive compensation is incorporated by reference from the **2020 Proxy Statement**[340](index=340&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=58&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership is incorporated by reference from the 2020 Proxy Statement - Information regarding security ownership is incorporated by reference from the **2020 Proxy Statement**[340](index=340&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=58&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions,%20and%20Director%20Independence) Information regarding certain relationships, related transactions, and director independence is incorporated by reference from the 2020 Proxy Statement - Information regarding certain relationships, related transactions, and director independence is incorporated by reference from the **2020 Proxy Statement**[341](index=341&type=chunk) [Principal Accounting Fees and Services](index=58&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information regarding principal accounting fees and services is incorporated by reference from the 2020 Proxy Statement - Information regarding principal accounting fees and services is incorporated by reference from the **2020 Proxy Statement**[342](index=342&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=58&type=section&id=Item%2015.%20Exhibits,%20Financial%20Statement%20Schedules) This section lists the financial statements, schedules, and exhibits filed as part of the annual report, including key corporate documents and required certifications - This section provides a list of all financial statements and exhibits filed with the Form **10-K**[342](index=342&type=chunk) [Form 10-K Summary](index=60&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company reports no information for the Form 10-K summary - None[345](index=345&type=chunk)

Financial Data and Key Metrics Changes - Fourth quarter revenue decreased 4.6% year-over-year to $72.1 million, primarily due to a decline in political revenue [6][10] - Full year 2019 revenue increased 1.6% on an actual basis, with a decrease of 1.1% on a same-station basis [8][10] - Fourth quarter free cash flow increased to $20.7 million compared to $8.6 million in the prior year [17] - Full year 2019 free cash flow increased to $33.5 million from $25.5 million in the prior year [18] Business Line Data and Key Metrics Changes - Digital revenues rose 44% year-over-year in Q4, accounting for 9.2% of total revenue, up from 6.1% in the same quarter last year [7][20] - Consumer services remained the largest revenue category at around 26% of total revenue, with a 4% year-over-year increase [12] - Retail category declined 8% year-over-year, while auto category increased by 2% driven by Boston, Detroit, and Philadelphia clusters [12] Market Data and Key Metrics Changes - Revenue increases were realized in six markets: Augusta, Charlotte, Detroit, Philadelphia, and Wilmington [10] - Las Vegas saw the biggest decline due to high political revenue booked in 2018 [10] Company Strategy and Development Direction - The company is focused on diversifying revenue and cash flow, particularly through investments in esports and digital initiatives [4][20] - The acquisition of the Houston Outlaws is part of the strategy to expand in the esports space [4][21] - The company aims to capture a 30% revenue share in each market while delivering valuable synergies [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing digital growth initiatives, expecting continued solid growth in 2020 [20][21] - The company anticipates EBITDA margins to grow throughout the year as digital revenue exceeds investment costs [28] Other Important Information - Corporate G&A expenses increased due to investments in building out the digital platform [13] - Total outstanding debt at December 31, 2019, was $263.5 million, with a leverage ratio of 5.02x [16] Q&A Session Summary Question: Are you seeing any political dollars from Bloomberg and can you quantify it? - The company has about $1 million in political revenue booked, with at least half coming from Bloomberg [25] Question: Where do you expect leverage to sit at the end of the year? - The company projects leverage to be around 4.2x at the end of 2020 [26] Question: How should we think about operating expense trends for 2020 given all the investment spend? - EBITDA margins are expected to be flat in the first quarter, with growth anticipated for the rest of the year as digital revenue increases [27][28]

Beasley Broadcast Group, Inc. (NASDAQ:BBGI) Q3 2019 Results Conference Call November 7, 2019 10:00 AM ET Company Participants Caroline Beasley - CEO Marie Tedesco - CFO Conference Call Participants Operator Good morning, and welcome to the Beasley Broadcast Group’s Third Quarter 2019 Conference Call. Before proceeding, I would like to emphasize that today’s conference call and webcast will contain forward-looking statements about our future performance and results of operations that involve risks and uncert ...