Beasley Broadcast(US:BBGI)2024-11-08 21:03Revenue 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]