Beasley Broadcast(US:BBGI)2025-05-08 12:44Financial Performance - Net revenue for the three months ended March 31, 2025, decreased by $5.5 million, or 10.1%, compared to the same period in 2024, totaling $48.9 million[53]. - Audio revenue decreased by $5.3 million, or 12.1%, primarily due to a decrease in agency revenue, while digital revenue remained relatively stable[55]. - The net loss for the three months ended March 31, 2025, was $2.7 million, compared to a net income of approximately $8,000 for the same period in 2024, marking a substantial decline[59]. Operating Expenses - Operating expenses decreased by $4.0 million, or 8.1%, during the same period, with audio operating expenses down by $2.0 million and digital operating expenses down by $2.0 million[56]. - Interest expense decreased significantly by $2.2 million, or 39.5%, due to the amortization of a deferred interest premium from a debt restructure[57]. Tax and Dividend - The effective tax rate for the three months ended March 31, 2025, was 37%, compared to 104% for the same period in 2024, influenced by state income taxes and non-deductible expenses[58]. - The company has suspended future quarterly dividend payments until it is determined that resumption is in the best interest of stockholders[61]. Debt and Restructuring - The company completed an exchange of $194.7 million of prior notes for new senior secured second lien notes and common stock, representing 72.9% of the aggregate principal amount outstanding[63]. - The company incurred approximately $6.0 million in debt restructuring costs, primarily consisting of legal fees and financial advisory services[65]. - The carrying amount of the debt was reduced by the fair value of shares issued to holders of Prior Notes, amounting to $2.2 million[65]. - The company capitalized approximately $2.6 million in fees related to the debt restructuring[65]. Liquidity and Cash Flow - The company’s primary sources of liquidity include internally generated cash flow and cash on hand, with needs for working capital, debt service, and capital expenditures[60]. - The company expects to have sufficient liquidity and capital resources to meet financial obligations for the next 12 months[68]. - Future liquidity needs are expected to be met through internally generated cash flow and other sources[67]. - Net cash used in operating activities decreased from $4.0 million in Q1 2024 to $3.5 million in Q1 2025, with a $3.1 million decrease in cash paid for operating expenses[71]. - Net cash provided by investing activities in Q1 2025 was $1.9 million, down from $5.1 million in Q1 2024, with proceeds of $2.7 million from property and equipment dispositions[72]. - The net increase in cash and cash equivalents was a decrease of $1.5 million in Q1 2025 compared to an increase of $1.0 million in Q1 2024[71]. Stock Activity - The company repurchased 1,220 shares of Class A Common Stock for approximately $9,000 during the three months ended March 31, 2025[66]. - The company has no off-balance sheet arrangements as of March 31, 2025[69].