Beasley Broadcast(BBGI) - 2024 Q2 - Quarterly Report

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]