Sign in

You're signed outSign in or to get full access.

BB

BEASLEY BROADCAST GROUP INC (BBGI)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 net revenue increased 2.3% to $67.3M, driven by $8.3M in political advertising; operating income held flat at $7.6M, while net loss was $2.1M (-$1.17 diluted EPS) due to one-time exchange/refinancing fees and severance .
  • EBITDA per Indenture more than doubled YoY to $12.5M and Adjusted EBITDA rose to $10.7M, reflecting disciplined cost actions and streamlining; management cites ~$20M annualized savings with additional Q4 reductions not fully reflected yet .
  • Digital revenue was $11.5M (17.1% of net revenue), slightly down YoY on the wind-down of Guarantee Digital but up sequentially; local revenue was 71% of mix; national ex-political remained pressured but improved vs Q3 .
  • Balance sheet actions reduced debt and extended maturities (principal outstanding ~$220M vs $267M at 2023 YE) and lowered interest expense; cash ended Q4 at $13.8M versus $27.8M in Q3 due to restructuring payments .
  • Near-term caution: management guides Q1 2025 same-station revenue pacing down ~10% amid advertiser caution; catalysts include sustained cost savings, debt structure improvements, and digital monetization, offset by macro/tariff risks and sports betting normalization .

What Went Well and What Went Wrong

What Went Well

  • Cost actions delivered step-change in profitability: Q4 EBITDA per Indenture $12.5M vs $6.2M YoY; SOI up 46% YoY to $14.1M, supported by workforce realignment and operating efficiencies .
  • Political revenue provided a strong tailwind: $8.3M in Q4 (12.3% of total), with notable strength in Charlotte, Philadelphia, Detroit, and Las Vegas .
  • Management strategic narrative: “2024 was a transformative year… approximately $20.0 million in annualized expense reductions, improved our leverage profile… enhanced our financial flexibility,” positioning for digital-led growth .

What Went Wrong

  • Net loss and EPS negative on one-time items: debt issuance/refinancing costs and severance drove a $2.1M net loss (-$1.17 EPS) despite flat operating income .
  • Digital revenue declined 4.1% YoY to $11.5M on Guarantee Digital shut-down; new business was a headwind (-12.8% YoY), and local over-the-air revenue declined 5.7% .
  • Continued pressure in national and auto categories; national ex-political down 4.9% YoY (improved from -16% in Q3), auto facing tariff-related demand uncertainty .

Financial Results

MetricQ4 2023Q3 2024Q4 2024
Revenue ($USD Millions)$65.7 $58.2 $67.3
Operating Income ($USD Millions)$7.6 $1.24 $7.6
Net Income ($USD Millions)$6.38 $(3.56) $(2.06)
Diluted EPS ($USD)$4.25 $(2.33) $(1.17)
Adjusted EBITDA ($USD Millions)$5.27 $5.55 $10.68
EBITDA per Indenture ($USD Millions)$6.22 N/A$12.51
Operating Margin (%)11.6% (7.6/65.7) 2.1% (1.24/58.2) 11.3% (7.6/67.3)

Segment/KPI details

MetricQ4 2023Q3 2024Q4 2024
Political Revenue ($USD Millions)N/A$2.7 $8.3
Digital Revenue ($USD Millions)N/A$11.3 $11.5
Digital Share of Net Revenue (%)N/A19.4% 17.1%
Local Revenue Share (%)N/A56.8% 71%
National Revenue Share (%)N/A12.7% 12.4%
Sports Betting Revenue ($USD Millions)N/A$3.4 $4.1

Balance sheet and cash flow KPIs

MetricQ4 2023Q3 2024Q4 2024
Cash & Equivalents ($USD Millions)$26.7 $27.8 $13.8
Working Capital ($USD Millions)$38.35 $32.88 $16.30
Long-term Debt, net ($USD Millions)$264.20 $265.21 Principal outstanding ~$220 (pro forma)
CapEx ($USD Millions)N/A$0.64 $0.39

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Same-station revenue pacingQ1 2025N/ADown ~10%New commentary
Digital as share of new businessFY 2025N/A“Roughly half” of new businessNew commentary
Annual CapExFY 2024$4–$5MMaintained range; YTD $3.0MMaintained

Note: No formal quantitative revenue/EPS guidance ranges were provided for FY 2025 .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2, Q3 2024)Current Period (Q4 2024)Trend
Cost reductions / efficiency~$10M annualized plan; severance in May; SOI/Adj. EBITDA improved ~$20M annualized savings; Q4 incremental cuts >$3M; more benefits in 2025 Strengthening
Digital monetizationQ2 same-station digital +10.4%; close Guarantee Digital to lift margins $11.5M digital; mix 17.1%; sequential up; redesigned websites in Q2 2025 Replatforming, margin focus
Political advertisingQ2 $0.59M; Q3 $2.7M; pacing strong into Q4 Q4 $8.3M; strong markets named Peak realized
National advertisingQ2 stabilization; ex-pol up 3.5% Q3 ex-pol -16%; Q4 ex-pol -4.9% (improved) Improving but soft
Auto/tariffs macroAuto down Q2/Q3; tariff risk noted Import segment +115% YoY; tariff risk could raise prices $2k–$12k; cautious budgets Mixed: import strength vs macro risk
Ratings/PPM methodologyPPM strength in key markets Nielsen PPM change benefits Beasley; #1/#2 in half markets Supportive tailwind
Capital structureLaunch exchange/new notes; reverse split Debt principal ~$220M; interest expense down; financial flexibility improved Deleveraging progressed

Management Commentary

  • CEO: “2024 was a transformative year… approximately $20.0 million in annualized expense reductions, improved our leverage profile, and enhanced our financial flexibility… digital business—now representing nearly 20% of total revenue” .
  • CFO: “EBITDA as defined by our indentures… totaled $12.5M, with full year lender EBITDA at $32.2M… debt outstanding $220M… Cash on hand at the end of Q4 was $13.8M… Capital expenditures for the quarter totaled $387,000” .
  • CEO on digital: “We expect digital to drive roughly half of all new business… redesigned station and Beasley digital websites… optimized to enhance user experience… premium inventory” .
  • CEO on Q1 pacing: “Same-station revenue is pacing down roughly 10%… advertisers remain cautious amid ongoing economic uncertainty” .

Q&A Highlights

  • Political strength concentrated in Charlotte, Philadelphia, Detroit, with meaningful dollars from Las Vegas .
  • National pacing mixed: Boston down, Philadelphia up; overall national pacing down ~10%, driven by sports betting pullback in Charlotte .
  • Cost savings timing: >$20M annualized reflected; additional >$3M Q4 cuts with only ~$0.5M hitting Q4, remainder benefits 2025 .
  • Regulatory environment: management supportive of deregulation; open to swaps or station sales if accretive .

Estimates Context

  • Wall Street consensus estimates (S&P Global) for Q4 2024 were unavailable due to data access limits during retrieval. As a result, we cannot quantify beats/misses vs consensus for revenue or EPS this quarter [GetEstimates error].
  • Implication: While operational metrics improved and political tailwinds aided revenue, formal “beat/miss” classification vs Street cannot be determined from S&P Global at this time.

Key Takeaways for Investors

  • Political tailwind masked underlying spot softness; operating discipline drove a sharp improvement in EBITDA per Indenture and SOI—focus on cost carry-through into 2025 is key .
  • One-time debt/refinancing costs and severance pressured GAAP EPS; with these largely behind, watch normalized FCF trajectory aided by lower interest expense and ~$20M annualized savings .
  • Digital evolution is central: new content/monetization frameworks and site redesigns should lift higher-margin O&O revenue; sequential digital growth despite mix effects is constructive .
  • Category risk: sports betting and auto remain volatile; tariff-related demand risks could weigh on national budgets; monitor advertiser behavior into Q1–Q2 .
  • Near-term caution: Q1 2025 pacing down ~10% could temper sentiment; however, deleveraging and improved credit metrics provide downside protection if execution on sales and digital continues .
  • Capital structure improving: debt principal ~$220M and interest expense down YoY; further reductions would enhance equity optionality if operating momentum persists .
  • Actionable: Favor catalysts from sustained margin expansion, digital mix gains, and potential regulatory tailwinds; be wary of macro shocks (tariffs) and post-election ad normalization in H1.

Appendices

Condensed Consolidated Statement excerpts and reconciliations

  • Q4 2024 Net revenue $67.3M; Operating income $7.58M; Net loss $2.06M; diluted EPS $(1.17); Adjusted EBITDA $10.68M; EBITDA per Indenture $12.51M .
  • Q3 2024 Net revenue $58.2M; Operating income $1.24M; Net loss $3.56M; diluted EPS $(2.33); Adjusted EBITDA $5.55M .
  • Balance sheet: Cash $13.77M; Working capital $16.30M; Long-term debt (net) $247.12M (with principal outstanding ~$220M pro forma); Stockholders’ equity $147.22M .

Non-GAAP definitions

  • Adjusted EBITDA and EBITDA per Indenture defined and reconciled in the release; includes add-backs for severance, stock-based comp, property/franchise taxes, non-recurring items, and pro-forma cost savings .