Beasley Broadcast(US:BBGI)2019-04-29 17:57Financial Data and Key Metrics Changes - Revenue increased by 4.6% year-over-year to $57.7 million, driven by growth in various clusters and acquisitions [4][10] - Excluding USTN revenue from the previous year, net revenue would have increased by 6.2% [5][10] - Free cash flow for Q1 was negative $214,000, a decrease from $2.7 million in the prior year [8][18] - Net income improved to $1.4 million from a loss of $3.2 million in the previous year [16] Business Line Data and Key Metrics Changes - Consumer services remained the largest revenue category, accounting for about 26% of total revenue, with a 6% year-over-year increase [11] - Retail revenue increased by 8%, while entertainment and auto categories saw slight increases of 1% [12] - On a same-station basis, consumer services increased by 2.5%, while entertainment and auto categories declined by 1.5% and 3% respectively [13] Market Data and Key Metrics Changes - The Philly cluster revenue grew almost 2% on a pro forma basis, achieving a revenue share of 29.2%, up from 27% in the previous quarter [7] - National spot revenue increased by double digits year-over-year, contributing to overall revenue performance [6] Company Strategy and Development Direction - The company is focusing on diversifying revenue streams through digital expansion and transformation initiatives [20] - Investments are being made in content marketing monetization and local digital content excellence to enhance engagement [21][22] - The launch of Beasley XP, an Esports division, aims to tap into the growing gaming market and reach younger demographics [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future revenue growth, with Q2 pacing expected to be low mid-single digits [26] - The company is committed to reducing leverage and returning capital to shareholders while managing its capital structure [27] - Management emphasized the importance of digital content, which accounts for about 30% of digital revenue, as a growth area [34] Other Important Information - Corporate G&A expenses increased by $1.7 million year-over-year, primarily due to prior year pension benefits and investments in digital initiatives [13][15] - The company ended the quarter with cash on hand of $16.3 million and total outstanding debt of $249.5 million [17][18] Q&A Session Summary Question: What were your best and worst performing categories? - The best performing category was fast food, while the worst performing categories were beverages and consumer products, both down in percentage and dollar terms [29] Question: What is the impact of USTN in the second quarter? - The impact for the second quarter was $675,000, with a total impact of approximately $1.7 million written off in the third quarter [30] Question: How should we think about margins in the Esports segments? - The Esports, podcasting, and digital content initiatives are expected to have a 1% to 2% impact on margins [32] Question: Can you provide more information on your digital content? - Digital content accounts for about 30% of digital revenue, and the company sees significant growth opportunities in this area [34]