Beasley Broadcast(US:BBGI)2020-08-09 17:55Financial Data and Key Metrics Changes - The company reported a 53.7% decrease in net revenue for Q2 2020, amounting to $30.4 million, down from $65.7 million in the prior year [10][12] - Operating income for Q2 2020 was approximately negative $17.6 million, compared to a positive $10.7 million in the same quarter last year [14] - Total outstanding debt as of June 30, 2020, was $273 million, an increase from $268.5 million at March 31, 2019 [15] Business Line Data and Key Metrics Changes - Consumer services remained the largest revenue category at 36%, with a year-over-year decline of 36.7% [12] - Retail revenue, representing around 16% of total revenue, declined by 61.2% [12] - The auto category saw a significant decline of nearly 69%, accounting for 8.6% of total revenue [12] Market Data and Key Metrics Changes - April revenue was down 60.4% year-over-year, May down 60.6%, and June down 43.7% [10] - Some markets, such as Augusta, Detroit, and Fayetteville, performed slightly better than others [10] Company Strategy and Development Direction - The company has focused on preserving liquidity and reducing operating expenses, with a total reduction of over $26 million planned for 2020 [6][21] - Digital revenue accounted for 13.9% of total revenue for the quarter, up from 7.4% in the previous year [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the pandemic but expressed optimism about month-over-month revenue improvements and robust political revenue expectations [8][18] - The company aims to reduce the percentage declines in net revenue sequentially through November [8] Other Important Information - The company has suspended future quarterly dividends and implemented salary reductions for executives and staff [6][7] - The esports segment generated $823,000 in revenue during the quarter, with ongoing initiatives to enhance audience engagement [10][17] Q&A Session Summary Question: Are the $26 million cost cuts permanent? - The majority of the $26 million cuts are permanent, but about 20% are based on temporary wage cuts and performance-related adjustments [21][22] Question: Thoughts on working capital and advertiser payments? - The company has made substantial expense cuts that will benefit working capital, and while accounts receivables are higher than normal, collections are in line or slightly better than projected [23]