Beasley Broadcast(BBGI)2024-08-12 17:51Financial Data and Key Metrics - Q2 2024 total revenue was 8.8 million in Q2 2024 [8] - Operating expenses declined 3.9% or 1.3 million in severance costs [7][8] - Same-station SOI increased by 12.6 million, excluding severance costs [8] - Total debt at the end of Q2 was 300 million at the beginning of 2021 [13] Business Line Performance - Digital revenue growth remains a priority, with digital SOI at 586,000, exceeding the budget by 72% and up significantly from 3.1 million, accounting for 5.6% of total revenue, with growth in Boston and Charlotte offset by declines in Philadelphia [11] Market Performance - Six markets, including Augusta, Charlotte, Fayetteville, Fort Myers, New Jersey, and Tampa, exceeded prior year Q2 revenues [9] - The company holds the top-rated station in key markets such as Boston, Charlotte, Detroit, Las Vegas, and Philadelphia, with strong Nielsen Audio PPM ratings [18] Strategy and Industry Competition - The company is shifting its revenue mix toward digital, aiming for digital to account for 20%-25% of total revenue in 2024 [5] - A strategic plan focuses on revenue growth, leverage reduction, free cash flow, and addressing the capital structure ahead of the Q1 2026 debt maturity [19] - The company is streamlining traditional business operations, expanding digital revenue streams, and focusing on corporate expense management [19] - A 10 million annually, achieved through headcount reductions and operational consolidation [20] Management Commentary on Operating Environment and Outlook - Management noted continued softness in ad-reliant businesses, particularly in local markets, reflecting broader economic challenges [6] - The company expects a robust second half of 2024, driven by strong political spending and continued digital expansion [5][21] - Management remains optimistic about growth prospects, particularly in digital and political revenue streams [21] Other Important Information - The company closed its white-label agency, Guarantee Digital, transferring 75% of its revenue to the in-house agency Digital Direct, expected to increase the bottom line by 1 million [16] - The company exited its esports content initiative due to profitability concerns and a focus on reducing leverage [17] - A new head of digital content marketing was hired to support the growth of digital revenue streams [18] Q&A Session Question: Any discussions with creditors about the February 2026 bond maturity? - The company is laser-focused on addressing the Q1 2026 maturity and will provide more details in the near term [24] Question: Are there more assets that could be sold? - The company is open to selling assets at an attractive and deleveraging price [26] Question: Progress on the 10 million cost savings program? - The company realized $2 million in cost improvements in Q2, with the full benefit of the savings expected in future quarters [27]