Beasley Broadcast Group Reports Fourth Quarter Revenue of $65.7 Million and Diluted EPS of $0.21

Core Viewpoint - Beasley Broadcast Group reported a mixed financial performance for the fourth quarter and full year of 2023, with a notable improvement in operating income and net income compared to the previous year, despite a decline in net revenue primarily due to decreased political and commercial advertising [3][4][5]. Financial Results Summary - For the three months ended December 31, 2023, net revenue was $65.7 million, down from $72.0 million in the same period of 2022, reflecting a decrease of $6.3 million [2][5]. - Operating income for the fourth quarter was $7.6 million, a significant increase from an operating loss of $31.7 million in Q4 2022, attributed to lower operating expenses and non-cash impairment losses [2][3]. - Net income for the fourth quarter was $6.4 million, or $0.21 per diluted share, compared to a net loss of $24.5 million, or $0.83 per diluted share, in the prior year [4][5]. - Adjusted EBITDA for Q4 2023 was $4.7 million, down from $9.9 million in Q4 2022, primarily due to lower net revenue [4][5]. Revenue and Expense Analysis - The decrease in net revenue for the full year 2023 was $9.3 million, totaling $247.1 million compared to $256.4 million in 2022 [2][5]. - Operating expenses for the fourth quarter decreased by 3.3% year-over-year, contributing to the improved operating income [7]. - The company reported a year-over-year decline in operating expenses of 2.3% for the full year [7]. Strategic Initiatives and Market Position - Beasley emphasized its revenue diversification strategy and cost management initiatives, which helped mitigate the impacts of cyclical political revenue and advertising market softness [5][6]. - Digital revenue grew by 11.4% year-over-year, representing 18.4% of total revenue for 2023, with expectations to increase to 20%-25% in 2024 [7][9]. - The company executed strategic transactions, including the sale of WJBR-FM for $5 million and the return of its Overwatch e-sports franchise license for $6 million, allowing a pivot towards higher-margin gaming content [8][9]. Debt Management and Financial Flexibility - Beasley reduced its long-term debt by $23 million in 2023, enhancing its balance sheet and lowering quarterly interest expenses [9]. - The company utilized proceeds from asset sales to repurchase $20 million of senior secured notes at a discount, aiming for continued debt reduction in 2024 [9][10].