Beasley Broadcasting Sees 37.3% Net Income Jump In Q2
July 27, 2012
Beasley Broadcast Group announced its second quarter financial results for 2012, with net income up 37.3 percent to $3.9 million from $2.8 million a year ago. However, net revenue in Q2 fell by 2.8 percent from $25.5 million down to $24.8 million. This was attributed primarily to a decline in revenues at Beasley's Fayetteville, NC cluster, as well as lower revenue from some other markets. Operating income rose by 19.6 percent to $7.7 million from $6.4 million.
Chairman/CEO George G. Beasley said, "Our second quarter revenue performance principally reflects overall industry weakness in the first month of the quarter, a revenue decline at our Fayetteville cluster partially related to lower levels of auto advertising and lower revenue in the Ft. Myers market due to the fact that in the year ago period we hosted a concert. While net revenue was down mid single digits in April, low single digit revenue growth resumed in May and June and extended through July. The Company's streamlined operating structure and ongoing expense management initiatives combined with a music license fee settlement drove the $1.1 million rise in 2012 second quarter SOI. On a reported basis, second quarter SOI margins rose to 41.0 percent up from 35.7 percent in the same quarter last year. However, even excluding the benefit of the music license fee settlement, 2012 second quarter SOI margins remained strong and would have been 37.9 percent or more than 200 basis points over last year's levels.
He added, "Our focus on core programming is delivering ratings strength in many markets while we concurrently expand our on-air and digital advertising platforms. We also continue to strengthen our balance sheet and capital structure and during the second quarter, we made repayments totaling $3.2 million against the credit facility, which reduced total bank debt to $120.2 million at June 30, 2012 from $135.7 million at the end of last year's second quarter. We ended the second quarter with our lowest leverage ratio in over ten years and remain committed to using cash from operations to further lower debt and other initiatives which can enhance shareholder value."