Beasley Broadcast(US:BBGI)2025-03-20 20:44Financial Data and Key Metrics Changes - For Q4 2024, total net revenue was $67.3 million, a 2.3% increase compared to Q4 2023 [5] - Full year 2024 total net revenue was $240 million, a 2.8% decline compared to full year 2023 [15] - Same-station revenue for Q4 grew 4.4% [6] - Station operating income (SOI) for Q4 was $14.1 million, a 46% increase year-over-year [21] - Full year operating income totaled $13.1 million versus a loss of $82 million in 2023 [25] - Interest expense for Q4 was $3.5 million, a reduction of $3.4 million year-over-year [25] - Total principal outstanding on notes was $220 million, down from $267 million at the end of 2023 [26] - EBITDA for Q4 was $12.5 million, with full year lender EBITDA at $32.2 million, a 35% improvement versus the prior year [26] Business Line Data and Key Metrics Changes - Digital revenue accounted for 17.1% of total revenue in Q4, down from 19.4% in Q3, but total digital revenue increased sequentially [7] - For the full year, digital revenue as a percentage of total revenue reached 19.4%, up from 18.4% in the prior year [8] - National revenue, excluding political, declined 4.9% in Q4, an improvement from the 16% decline in Q3 [8] - Local over-the-air revenue declined 5.7% in Q4 [9] - Sports betting revenue for Q4 was $4.1 million, a $1.1 million decrease year-over-year [16] Market Data and Key Metrics Changes - Political revenue for Q4 was $8.3 million, helping to offset weakness in national and local ad spend [6] - The auto sector remained flat but took more share, rising to 9% of total revenue in Q4 [18] - Anticipated tariffs could drive up consumer vehicle prices significantly, leading to advertiser pullback in the auto sector [19] Company Strategy and Development Direction - The company executed strategic capital structure initiatives to improve leverage profile and reduce financial risk [5] - Focus on digital growth and enhancing digital operations to drive higher-margin offerings [30][32] - Plans to redesign digital platforms to enhance user experience and increase engagement [35] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued near-term pressure in advertising due to economic uncertainty [12][38] - Same-station revenue is pacing down roughly 10% for Q1 2025, with significant declines starting in February [37] - Management remains focused on driving digital growth and strengthening advertiser relationships [38] Other Important Information - The company delivered over $20 million in annualized savings through workforce realignment and technology-driven efficiencies [5] - Corporate expenses for Q4 totaled $4.7 million, reflecting a reduction year-over-year [23] Q&A Session Summary Question: Which markets led in political revenue for Q4? - Significant political dollars were seen in Charlotte, Philadelphia, Detroit, and Las Vegas [41] Question: Are there signs of resumption in national advertising in Philadelphia and Boston? - National in Boston is pacing down, while national in Philadelphia is pacing up, but overall national pacing is down roughly 10% [43] Question: How much of the $20 million cost savings impacted 2024 numbers? - Improvements in EBITDA reflect annualized cost savings exceeding $20 million, with further reductions in Q4 contributing to additional savings [44][45] Question: What is the potential for regulatory changes and openness to station swaps or sales? - The regulatory environment seems ripe for deregulation, and the company is open to swaps or sales if the deal is right [46][47]