Beasley sees 37.3% Q2 net income jump


Beasley Broadcast Group’s Q2 net income wasup 37.3% to $3.9 million from $2.8 million a year ago. However, net revenue in Q2 fell by 2.8% 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 at the company’s clusters in other markets. Operating income rose by 19.6% to $7.7 million from $6.4 million.

A $1.3 million, or 19.6% year-over-year improvement in Q2 operating income reflects a 10.4% reduction in total operating expenses during the period. The $2.0 million 2012 second quarter operating expense reduction primarily reflects a 10.9% or $1.8 reduction in station operating expenses inclusive of an $0.8 million music license fee settlement with BMI.

Q1 2012 station operating income (SOI), a non-GAAP financial measure, rose $1.1 million, or 11.6%, to $10.2 million compared with the 2011 Q2 as the decline in station operating expenses more than offset the lower net revenue.

The 37.3% growth in 2012 first quarter net income reflects the higher operating income and a $0.6 million, or 31.5% year-over-year reduction in interest expense as a result of lower outstanding credit facility balances and the expiration of swap agreements at the end of the third quarter of 2011, which more than offset a $0.6 million, or 31.3%, increase in income tax expense. Reflecting the higher net income levels, net income per basic and diluted share for the 2012 second quarter rose 41.7% to $0.17 from $0.12 in the year-earlier period.

Said George Beasley, CEO: “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% up from 35.7% 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% or more than 200 basis points over last year’s levels.”