[PART I FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements.) The unaudited condensed consolidated financial statements show total assets increased to **$739.9 million** and nine-month net income nearly doubled to **$8.7 million** [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets reached **$739.9 million** as of September 30, 2019, driven by new lease accounting standards and FCC licenses, with total liabilities rising to **$458.4 million** Condensed Consolidated Balance Sheet Summary | Balance Sheet Items | Sep 30, 2019 | Dec 31, 2018 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $11,898,751 | $13,433,828 | | Total current assets | $69,923,468 | $70,945,768 | | FCC licenses | $529,626,671 | $516,735,554 | | **Total assets** | **$739,883,343** | **$681,085,079** | | **Liabilities & Equity** | | | | Total current liabilities | $42,295,514 | $28,859,360 | | Long-term debt, net | $245,228,469 | $242,776,520 | | Operating lease liabilities (long-term) | $35,800,025 | $0 | | **Total liabilities** | **$458,414,451** | **$406,050,988** | | **Total stockholders' equity** | **$281,468,892** | **$275,034,091** | - The company adopted new lease accounting guidance on January 1, 2019, resulting in the recognition of **$38.8 million** in right-of-use assets and **$43.1 million** in lease liabilities on the balance sheet[10](index=10&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Q3 2019 net revenue slightly increased to **$66.1 million**, while nine-month net income nearly doubled to **$8.7 million** due to revenue growth and dispositions Three Months Ended September 30 | Metric | 2019 | 2018 | | :--- | :--- | :--- | | Net Revenue | $66,114,701 | $65,147,080 | | Operating Income | $9,411,752 | $9,326,142 | | Net Income | $3,185,277 | $2,631,776 | | Net Income per Share (Basic & Diluted) | $0.11 | $0.10 | Nine Months Ended September 30 | Metric | 2019 | 2018 | | :--- | :--- | :--- | | Net Revenue | $189,461,003 | $181,926,003 | | Operating Income | $26,898,973 | $20,377,442 | | Net Income | $8,666,163 | $4,389,196 | | Net Income per Share (Basic & Diluted) | $0.31 | $0.16 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Nine-month operating cash flow significantly increased to **$23.3 million**, while investing cash use decreased and financing activities shifted to a net use Cash Flow Summary (Nine Months Ended Sep 30) | Cash Flow Activity | 2019 | 2018 | | :--- | :--- | :--- | | Net cash provided by operating activities | $23,313,498 | $15,833,485 | | Net cash used in investing activities | ($21,611,242) | ($43,069,058) | | Net cash provided by (used in) financing activities | ($3,237,333) | $23,292,684 | | **Net decrease in cash and cash equivalents** | **($1,535,077)** | **($3,942,889)** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail new lease accounting, the **$13.5 million** WDMK-FM acquisition, **$3.5 million** gain on dispositions, and **$253.0 million** in long-term debt - On August 31, 2019, the company acquired WDMK-FM in Detroit for **$13.5 million** in cash, financed through **$10.0 million** in borrowings and **$3.5 million** from cash operations[11](index=11&type=chunk) - The company recorded a total gain of **$3.5 million** from dispositions in the first quarter of 2019, comprising a **$0.4 million** gain from a land sale in Augusta, GA, and a **$3.1 million** gain from the cancellation of a broadband radio service license in Chattanooga, TN[12](index=12&type=chunk)[13](index=13&type=chunk) - The company made significant investments accounted for using the equity method, including an aggregate **$5.0 million** in esports organization Renegades Holdings, Inc. and an additional **$1.5 million** in technology company Quu, Inc[18](index=18&type=chunk)[19](index=19&type=chunk) Revenue by Type (Nine Months Ended Sep 30) | Revenue Type | 2019 | 2018 | | :--- | :--- | :--- | | Commercial advertising | $164,125,289 | $157,761,002 | | Digital advertising | $13,507,547 | $10,826,473 | | Other | $11,828,167 | $13,338,528 | | **Total** | **$189,461,003** | **$181,926,003** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=15&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management attributes Q3 revenue growth to the WXTU-FM acquisition, with nine-month net income significantly increasing due to revenue, dispositions, and prior-year charge absence [Results of Operations](index=18&type=section&id=Results%20of%20Operations) Q3 net revenue increased by **$1.0 million** due to the WXTU-FM acquisition, while nine-month net income rose to **$8.7 million** driven by revenue growth and disposition gains - Q3 2019 net revenue increased by **$1.0 million**, largely due to an additional **$1.3 million** from the Philadelphia market cluster following the acquisition of WXTU-FM in late 2018[69](index=69&type=chunk) - Q3 2018 station operating expenses included **$1.7 million** of bad debt expense related to United States Traffic Network, which did not recur in 2019, contributing to a year-over-year decrease in this expense line[70](index=70&type=chunk) - For the nine months ended Sep 30, 2019, net income rose to **$8.7 million** from **$4.4 million** in 2018. Key drivers were a **$7.5 million** revenue increase, a **$3.5 million** gain on dispositions, and the absence of a **$4.4 million** charge related to the fair value of contingent consideration that was recorded in 2018[77](index=77&type=chunk)[81](index=81&type=chunk)[82](index=82&type=chunk)[85](index=85&type=chunk) [Liquidity and Capital Resources](index=20&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is supported by operating cash flow and a **$20.0 million** revolving credit facility with **$10.0 million** available, with the company in compliance with debt covenants - As of September 30, 2019, the credit facility consisted of a **$243.0 million** term loan and a **$10.0 million** outstanding balance on a **$20.0 million** revolving credit facility, with **$10.0 million** remaining available[88](index=88&type=chunk) - The company is required to maintain a maximum First Lien Leverage Ratio of **5.75x** through December 31, 2019, and was in compliance with all financial covenants as of the reporting date[91](index=91&type=chunk)[93](index=93&type=chunk) - The credit agreement permits annual dividends up to **$7.5 million** if the Total Leverage Ratio is above **3.5x**, and up to **$10.0 million** if it is at or below **3.5x**. The company paid **$4.2 million** in dividends during the first nine months of 2019[95](index=95&type=chunk) Cash Flow Comparison (Nine Months Ended Sep 30) | Cash Flow Activity | 2019 | 2018 | | :--- | :--- | :--- | | Net cash provided by operating activities | $23,313,498 | $15,833,485 | | Net cash used in investing activities | ($21,611,242) | ($43,069,058) | | Net cash provided by (used in) financing activities | ($3,237,333) | $23,292,684 | [Quantitative and Qualitative Disclosures About Market Risk](index=22&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) Disclosure on market risk is not required as the company qualifies as a smaller reporting company - Disclosure is not required as the company qualifies as a smaller reporting company[103](index=103&type=chunk) [Controls and Procedures](index=22&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded disclosure controls and procedures were effective as of September 30, 2019, with no material changes to internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[104](index=104&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[105](index=105&type=chunk) [PART II OTHER INFORMATION](index=22&type=section&id=PART%20II%20OTHER%20INFORMATION) [Legal Proceedings](index=22&type=section&id=Item%201.%20Legal%20Proceedings.) Management believes no current legal proceedings are likely to have a material adverse effect on the company's financial condition or operations - The company is not a party to any lawsuit or proceeding that, in management's opinion, is likely to have a material adverse effect on its financial condition or operations[105](index=105&type=chunk) [Risk Factors](index=23&type=section&id=Item%201A.%20Risk%20Factors.) No material changes to the company's risk factors occurred during the third quarter of 2019 - No material changes to the company's risk factors occurred during the third quarter of 2019[106](index=106&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=23&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) The company repurchased **1,875** shares of Class A common stock at **$2.98** per share in Q3 2019 to fund withholding taxes for restricted stock vesting Share Repurchases in Q3 2019 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | July 1 – 31, 2019 | — | — | | August 1 – 31, 2019 | — | — | | September 1 – 30, 2019 | 1,875 | $2.98 | - All share purchases were made to fund withholding taxes in connection with the vesting of restricted stock, as permitted by the 2007 Equity Incentive Award Plan and the company's credit agreement[108](index=108&type=chunk) [Defaults Upon Senior Securities](index=23&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities.) The company reported no defaults upon senior securities - The company reported no defaults upon senior securities[109](index=109&type=chunk) [Mine Safety Disclosures](index=23&type=section&id=Item%204.%20Mine%20Safety%20Disclosures.) This item is not applicable to the company - This item is not applicable to the company[109](index=109&type=chunk) [Other Information](index=23&type=section&id=Item%205.%20Other%20Information.) The company reported no other information for this item - The company reported no other information for this item[109](index=109&type=chunk) [Exhibits](index=24&type=section&id=Item%206.%20Exhibits.) The report lists filed exhibits, including CEO and CFO certifications and XBRL data files - Exhibits filed with the report include certifications from the Chief Executive Officer and Chief Financial Officer pursuant to SEC rules, as well as XBRL Instance Documents[111](index=111&type=chunk)

[PART I FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This section provides the unaudited condensed consolidated financial statements and related notes, along with management's discussion and analysis of financial condition and results of operations [Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements.) This section presents the unaudited condensed consolidated financial statements, including Balance Sheets, Statements of Comprehensive Income, and Statements of Cash Flows, for Beasley Broadcast Group, Inc Condensed Consolidated Balance Sheets (Unaudited) | Account | June 30, 2019 | December 31, 2018 | | :--- | :--- | :--- | | **Total Assets** | **$723,895,925** | **$681,085,079** | | Total Current Assets | $69,706,067 | $70,945,768 | | FCC broadcasting licenses | $516,735,554 | $516,735,554 | | Goodwill | $25,377,447 | $25,377,447 | | **Total Liabilities** | **$444,678,579** | **$406,050,988** | | Total Current Liabilities | $36,596,373 | $28,859,360 | | Long-term debt, net | $237,244,486 | $242,776,520 | | **Total Stockholders' Equity** | **$279,217,346** | **$275,034,091** | Condensed Consolidated Statements of Comprehensive Income (Unaudited) | Metric | Three Months Ended June 30, 2019 | Three Months Ended June 30, 2018 | | :--- | :--- | :--- | | Net revenue | $65,658,748 | $61,625,296 | | Operating income | $10,677,644 | $10,655,652 | | Net income | $4,269,001 | $4,918,612 | | Basic and diluted EPS | $0.15 | $0.18 | | Dividends declared per share | $0.05 | $0.05 | | **Metric** | **Six Months Ended June 30, 2019** | **Six Months Ended June 30, 2018** | | Net revenue | $123,346,302 | $116,778,923 | | Operating income | $17,487,222 | $11,051,300 | | Net income | $5,622,264 | $1,757,420 | | Basic and diluted EPS | $0.20 | $0.06 | Condensed Consolidated Statements of Cash Flows (Unaudited, Six Months Ended June 30) | Cash Flow Activity | 2019 | 2018 | | :--- | :--- | :--- | | Net cash provided by operating activities | $11,533,939 | $10,982,567 | | Net cash used in investing activities | ($3,369,405) | ($2,329,499) | | Net cash used in financing activities | ($9,325,978) | ($7,753,709) | | **Net (decrease) increase in cash** | **($1,161,444)** | **$899,359** | | Cash and cash equivalents at end of period | $12,272,384 | $14,821,749 | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements.) This section provides detailed explanations for financial statement figures, covering lease accounting, acquisitions, debt, revenue recognition, and stock-based compensation [Recent Accounting Pronouncements](index=7&type=section&id=Note%202%20Recent%20Accounting%20Pronouncements) The company adopted new FASB lease accounting guidance on January 1, 2019, recognizing significant lease liabilities and right-of-use assets - On January 1, 2019, the Company adopted the new lease guidance, recording a lease liability of **$43.1 million** and right-of-use assets of **$38.8 million**, with a cumulative effect adjustment of **$0.9 million** to retained earnings[10](index=10&type=chunk) [Acquisitions and Dispositions](index=7&type=section&id=Note%203%20Acquisitions%20and%20Dispositions) The company agreed to acquire WDMK-FM for $13.5 million and completed two dispositions in Q1 2019, generating a $3.5 million gain - On June 10, 2019, the Company agreed to acquire WDMK-FM and three translators in Detroit from Urban One, Inc. for **$13.5 million** in cash, with the deal expected to close in Q3 2019[11](index=11&type=chunk) - In Q1 2019, the company generated a total gain of **$3.5 million** from two dispositions: the sale of land in Augusta, GA (**$0.4 million** gain) and the cancellation of a broadband radio service license in Chattanooga, TN (**$3.1 million** gain)[12](index=12&type=chunk)[13](index=13&type=chunk) [Other Assets](index=8&type=section&id=Note%204%20Other%20Assets) The company invested $4.5 million in esports organization Renegades Holdings, Inc., acquiring an approximate 43% stake through cash, stock, and media advertising - The company invested **$4.5 million** in esports organization Renegades Holdings, Inc. for an approximate **43% stake** The investment consisted of **$2.5 million** in cash, **$1.0 million** in Class A common stock, and **$1.0 million** in media advertising[17](index=17&type=chunk) [Long-Term Debt](index=8&type=section&id=Note%205%20Long-Term%20Debt) As of June 30, 2019, long-term debt primarily consisted of a $245.5 million term loan, with the company in compliance with all financial covenants and full availability of its $20.0 million revolving credit facility Long-Term Debt Composition (June 30, 2019) | Component | Amount | | :--- | :--- | | Term loan | $245,500,000 | | Revolving credit facility | $0 | | Less unamortized debt issuance costs | ($8,255,514) | | **Total Long-Term Debt, Net** | **$237,244,486** | - The term loan matures on **November 1, 2023**, and carried an interest rate of **6.4%** as of June 30, 2019 The company was in compliance with its financial covenants, including a maximum First Lien Leverage Ratio of **5.75x**[18](index=18&type=chunk)[21](index=21&type=chunk)[23](index=23&type=chunk) [Revenue](index=11&type=section&id=Note%208%20Revenue) The company's revenue, primarily from commercial advertising, grew to $123.3 million for the six months ended June 30, 2019, driven by increases in both commercial and digital advertising Revenue by Type (Six Months Ended June 30) | Revenue Type | 2019 | 2018 | | :--- | :--- | :--- | | Commercial advertising | $106,957,086 | $101,116,875 | | Digital advertising | $8,455,130 | $7,330,337 | | Other | $7,934,086 | $8,331,711 | | **Total Revenue** | **$123,346,302** | **$116,778,923** | [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 the company's financial performance for the three and six months ended June 30, 2019, highlighting revenue growth, net income changes, and liquidity - The company operates **64 radio stations** across various markets, including Atlanta, Boston, Detroit, Philadelphia, and Tampa[48](index=48&type=chunk) - Net revenue is primarily derived from the sale of commercial spots, with rates based on audience share (Nielsen Audio ratings), competition, and market size Revenue is typically lowest in the first quarter[55](index=55&type=chunk)[56](index=56&type=chunk)[57](index=57&type=chunk) [Results of Operations (Three Months Ended June 30)](index=16&type=section&id=Three%20Months%20Ended%20June%2030%2C%202019%20Compared%20to%20the%20Three%20Months%20Ended%20June%2030%2C%202018) Q2 2019 net revenue increased by 6.5% to $65.7 million due to acquisitions and market growth, though net income decreased by 13.2% to $4.3 million due to higher expenses Q2 2019 vs Q2 2018 Financial Comparison | Metric | Q2 2019 | Q2 2018 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net revenue | $65,658,748 | $61,625,296 | $4,033,452 | 6.5% | | Station operating expenses | $47,759,693 | $44,967,293 | $2,792,400 | 6.2% | | Net income | $4,269,001 | $4,918,612 | ($649,611) | (13.2)% | - The **$4.0 million** revenue increase was primarily due to **$3.2 million** from the Philadelphia market (WXTU-FM acquisition) and a **$1.6 million** increase in the Boston market[64](index=64&type=chunk) - Corporate general and administrative expenses rose by **$1.0 million**, mainly due to a **$0.7 million** increase in cash compensation from a higher employee count at corporate offices[67](index=67&type=chunk) [Results of Operations (Six Months Ended June 30)](index=17&type=section&id=Six%20Months%20Ended%20June%2030%2C%202019%20Compared%20to%20the%20Six%20Months%20Ended%20June%2030%2C%202018) H1 2019 net revenue grew 5.6% to $123.3 million, with net income significantly increasing by 219.9% to $5.6 million, primarily due to disposition gains H1 2019 vs H1 2018 Financial Comparison | Metric | H1 2019 | H1 2018 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net revenue | $123,346,302 | $116,778,923 | $6,567,379 | 5.6% | | Gain on dispositions | $3,545,755 | $0 | $3,545,755 | N/A | | Net income | $5,622,264 | $1,757,420 | $3,864,844 | 219.9% | - The **$6.6 million** revenue increase was driven by the Philadelphia (**$5.4 million**), Boston (**$2.1 million**), and Tampa-Saint Petersburg (**$0.9 million**) markets, partially offset by declines in Las Vegas and Charlotte[72](index=72&type=chunk) - A **$3.5 million** gain on dispositions was recorded in H1 2019 from the sale of land in Augusta and the cancellation of a license in Chattanooga[76](index=76&type=chunk) [Liquidity and Capital Resources](index=18&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity relies on cash from operations and its $20.0 million revolving credit facility, with management confident in sufficient liquidity despite debt covenants and dividend restrictions - As of June 30, 2019, the company had a term loan balance of **$245.5 million** and **$20.0 million** available under its revolving credit facility[82](index=82&type=chunk) - The credit agreement restricts annual cash dividends to **$7.5 million** if the Total Leverage Ratio is above **3.5x**, and **$10.0 million** if it is at or below **3.5x** The company paid **$2.8 million** in dividends in H1 2019[88](index=88&type=chunk) Cash Flow Summary (Six Months Ended June 30) | Cash Flow Activity | 2019 | 2018 | | :--- | :--- | :--- | | Net cash provided by operating activities | $11,533,939 | $10,982,567 | | Net cash used in investing activities | ($3,369,405) | ($2,329,499) | | Net cash used in financing activities | ($9,325,978) | ($7,753,709) | [Quantitative and Qualitative Disclosures About Market Risk](index=20&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) This section is omitted as it is not required for smaller reporting companies - Disclosure is not required for smaller reporting companies[96](index=96&type=chunk) [Controls and Procedures](index=20&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of June 30, 2019, with no material changes to internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures are effective as of the end of the reporting period[97](index=97&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2019, that have materially affected, or are reasonably likely to materially affect, internal controls[98](index=98&type=chunk) [PART II OTHER INFORMATION](index=21&type=section&id=PART%20II%20OTHER%20INFORMATION) This section provides other information, including legal proceedings, risk factors, equity security sales, and exhibits [Legal Proceedings](index=21&type=section&id=Item%201.%20Legal%20Proceedings.) The company is involved in incidental litigation, but management believes no current proceedings will materially adversely affect its financial condition or operations - The company is not a party to any lawsuit or proceeding that is likely to have a material adverse effect on its financial condition or operations[98](index=98&type=chunk) [Risk Factors](index=21&type=section&id=Item%201A.%20Risk%20Factors.) This section refers to risk factors from the 2018 Form 10-K, confirming no material changes during Q2 2019 - There have been no material changes to the risk factors affecting the Company during the second quarter of 2019 For details, refer to Item 1A of the 2018 Form 10-K[102](index=102&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=21&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) During Q2 2019, the company repurchased Class A common shares to fund withholding taxes related to employee restricted stock vesting, as permitted by its equity plan and credit agreement Share Repurchases (Q2 2019) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 1 – 30, 2019 | 1,875 | $3.78 | | May 1 – 31, 2019 | 500 | $3.57 | | June 1 – 30, 2019 | 750 | $3.18 | - All share purchases were made to fund withholding taxes in connection with the vesting of restricted stock units and shares, not as part of a publicly announced program[100](index=100&type=chunk) [Defaults Upon Senior Securities](index=21&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities.) The company reports no defaults upon senior securities during the period - None[104](index=104&type=chunk) [Mine Safety Disclosures](index=21&type=section&id=Item%204.%20Mine%20Safety%20Disclosures.) This item is not applicable to the company - Not applicable[105](index=105&type=chunk) [Other Information](index=21&type=section&id=Item%205.%20Other%20Information.) No information was provided under this item - None[105](index=105&type=chunk) [Exhibits](index=21&type=section&id=Item%206.%20Exhibits.) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data files - Exhibits filed include CEO and CFO certifications pursuant to Rule 13a-14(a)/15d-14(a) and Section 1350, as well as XBRL documents[107](index=107&type=chunk) [Signatures](index=23&type=section&id=SIGNATURES) This section contains the formal signatures authorizing the report [Signatures](index=23&type=section&id=Signatures) The report was formally signed and authorized by Caroline Beasley, CEO, and Marie Tedesco, CFO, on August 7, 2019 - The report was signed on **August 7, 2019**, by Caroline Beasley (CEO) and Marie Tedesco (CFO)[108](index=108&type=chunk)[109](index=109&type=chunk)

Financial Data and Key Metrics Changes - The company reported record second quarter revenue of $65.7 million, a 6.5% increase year-over-year, primarily driven by clusters in Boston, New Jersey, and Philadelphia [4][9] - Excluding non-recurring revenues from the previous year, the revenue increase would have been 8.7% [4] - Free cash flow declined to $5.5 million from $8.4 million, attributed to higher capital expenditures and increased corporate overhead [7][15] - Net income decreased by 13% to $4.3 million, primarily due to higher interest expenses [13] Business Line Data and Key Metrics Changes - Same station revenue increased by 2.7%, with national spot revenue increasing almost 10% for the quarter [5] - Digital revenues accounted for 7.4% of total revenue, up from 6.5% in the previous year [5][19] - Consumer services, the largest revenue category, saw a 17% year-over-year increase, while retail and auto categories experienced growth of 5% and a decline of 1%, respectively [10][11] Market Data and Key Metrics Changes - The Philadelphia cluster achieved a 30% revenue share in the market, with a 2.5% revenue increase on a pro forma basis [6] - The Boston cluster benefited from playoff games, contributing to revenue growth [6] Company Strategy and Development Direction - The company is focused on digital expansion and transformation, launching 62 new websites and developing digital support teams [18][19] - An acquisition of WDMK-FM and three translators in Detroit is expected to be deleveraging and strategically beneficial [8][23] - The company aims to achieve a 30% revenue share in key markets, with ongoing investments in digital initiatives [26] Management's Comments on Operating Environment and Future Outlook - Management noted that the third quarter revenue is pacing flat, with expectations for political revenue to impact quarterly comparisons [23] - The company aims to reduce leverage ratios and expects the acquisition of DMK to contribute positively to financials [23] Other Important Information - Corporate G&A expenses increased due to investments in digital initiatives, with ongoing expenses expected to stabilize once the digital build-out is complete [12] - The company made voluntary debt repayments totaling $4 million in the quarter [14] Q&A Session Summary Question: Update on revenue share in Top 5 markets - Management stated that the goal is a 30% revenue share, with Boston, Charlotte, and Philadelphia around that mark, while Detroit, Tampa, and Vegas are in the 20% range [25][26] Question: Update on ownership rules - Management indicated that a decision is not expected until the first half of next year due to ongoing litigation [27] Question: CapEx normalization expectations - Maintenance CapEx is typically around $4 million to $5 million per year, with investment CapEx expected to normalize towards maintenance levels by 2021 [28] Question: Political revenue growth in the second half of 2019 - Political revenue in the second half of 2018 was approximately $4 million, with limited expectations for growth until closer to 2020 [28] Question: Expected leverage at year-end - Management aims to achieve a leverage ratio around four times by year-end [29]

Financial Performance - Net revenue for the three months ended March 31, 2019, was $57.7 million, an increase of $2.5 million or 4.6% compared to $55.2 million for the same period in 2018[60]. - Net income for the three months ended March 31, 2019, was $1.4 million, an increase of $4.5 million compared to a net loss of $3.2 million for the same period in 2018[67]. - Net cash provided by operating activities increased by $2.6 million to $7.4 million for the three months ended March 31, 2019 compared to the same period in 2018[81]. Expenses - Station operating expenses increased by $1.9 million or 4.3% to $47.5 million for the three months ended March 31, 2019, compared to $45.5 million in the same period of 2018[61]. - Corporate general and administrative expenses rose by $1.7 million or 51.2% to $5.0 million for the three months ended March 31, 2019, compared to $3.3 million in the same period of 2018[62]. - Interest expense increased by $1.0 million or 26.6% to $4.6 million for the three months ended March 31, 2019, compared to $3.6 million in the same period of 2018[65]. Cash Flow - Cash receipts from revenue increased by $10.9 million, while cash paid for station operating expenses rose by $4.6 million during the same period[81]. - Net cash used in investing activities was $541,132 for the three months ended March 31, 2019, which included $2.5 million for investments and $1.8 million for capital expenditures[82]. - Net cash used in financing activities decreased to $3.9 million for the three months ended March 31, 2019, down from $4.3 million in the same period in 2018[83]. Debt and Liquidity - As of March 31, 2019, the carrying amount of the Company's long-term debt was $249.5 million, which approximated fair value based on current market interest rates[44]. - The revolving credit facility had $20.0 million in available commitments as of March 31, 2019, with interest based on LIBOR at 6.5%[70]. - The company expects to meet liquidity needs through internally generated cash flow, revolving credit facility, and potential equity offerings[78]. Tax and Compliance - The effective tax rate for the three months ended March 31, 2019, was 31.9%, compared to (13.7)% for the same period in 2018[66]. - The company was in compliance with all applicable financial covenants under the credit agreement as of March 31, 2019[75]. Acquisitions and Investments - The Company completed the acquisition of WXTU-FM on September 27, 2018, contributing $2.2 million in additional revenue in the Philadelphia market cluster[60]. - The credit agreement allows for additional dividends of up to $10 million annually if the Total Leverage Ratio is less than or equal to 3.5x[77]. - The scheduled principal repayments for the credit facility total $249.5 million, with $247.2 million due in 2023[76].

Financial Data and Key Metrics Changes - Revenue increased by 4.6% year-over-year to $57.7 million, driven by growth in various clusters and acquisitions [4][10] - Excluding USTN revenue from the previous year, net revenue would have increased by 6.2% [5][10] - Free cash flow for Q1 was negative $214,000, a decrease from $2.7 million in the prior year [8][18] - Net income improved to $1.4 million from a loss of $3.2 million in the previous year [16] Business Line Data and Key Metrics Changes - Consumer services remained the largest revenue category, accounting for about 26% of total revenue, with a 6% year-over-year increase [11] - Retail revenue increased by 8%, while entertainment and auto categories saw slight increases of 1% [12] - On a same-station basis, consumer services increased by 2.5%, while entertainment and auto categories declined by 1.5% and 3% respectively [13] Market Data and Key Metrics Changes - The Philly cluster revenue grew almost 2% on a pro forma basis, achieving a revenue share of 29.2%, up from 27% in the previous quarter [7] - National spot revenue increased by double digits year-over-year, contributing to overall revenue performance [6] Company Strategy and Development Direction - The company is focusing on diversifying revenue streams through digital expansion and transformation initiatives [20] - Investments are being made in content marketing monetization and local digital content excellence to enhance engagement [21][22] - The launch of Beasley XP, an Esports division, aims to tap into the growing gaming market and reach younger demographics [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future revenue growth, with Q2 pacing expected to be low mid-single digits [26] - The company is committed to reducing leverage and returning capital to shareholders while managing its capital structure [27] - Management emphasized the importance of digital content, which accounts for about 30% of digital revenue, as a growth area [34] Other Important Information - Corporate G&A expenses increased by $1.7 million year-over-year, primarily due to prior year pension benefits and investments in digital initiatives [13][15] - The company ended the quarter with cash on hand of $16.3 million and total outstanding debt of $249.5 million [17][18] Q&A Session Summary Question: What were your best and worst performing categories? - The best performing category was fast food, while the worst performing categories were beverages and consumer products, both down in percentage and dollar terms [29] Question: What is the impact of USTN in the second quarter? - The impact for the second quarter was $675,000, with a total impact of approximately $1.7 million written off in the third quarter [30] Question: How should we think about margins in the Esports segments? - The Esports, podcasting, and digital content initiatives are expected to have a 1% to 2% impact on margins [32] Question: Can you provide more information on your digital content? - Digital content accounts for about 30% of digital revenue, and the company sees significant growth opportunities in this area [34]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 000-29253 BEASLEY BROADCAST GROUP, INC. (Exact name of registrant as specified in its charter) Delaware 65-0960915 (St ...

Beasley Broadcast Group, Inc. (NASDAQ:BBGI) Q4 2018 Earnings Conference Call February 11, 2019 11:00 AM ET Company Participants Caroline Beasley - CEO Marie Tedesco - CFO Conference Call Participants Operator [Call starts abruptly] statements about our future performance and results of operations that involve risks and uncertainties described in the Risk Factors section of our most recent Annual Report on Form 10-K as supplemented by our Quarterly Reports on Form 10-K. Today's webcast will also contain a di ...