Bringing KOAS-FM Las Vegas into the fold helped Beasley Broadcast Group realize gains in net revenue and operating income. However, a loss related to long term debt extinguishment resulted in red ink for the net income and earnings per diluted share lines.
Net revenue grew 3.1% to $24.7M; station operating income increased 9.1% to $9M; and operating income increased 15.2% to $6.5M.
On the negative side, the debt retirement charge, $2.6M before taxed, resulted in a 50.7% reduction in net income to $1.2M and a 50% reduction per diluted share to $0.05.
Chairman/CEO George G. Beasley said, “The third quarter was an active and productive period for Beasley Broadcast Group. In addition to generating a 3.1% rise in net revenue which drove another period of SOI growth, we completed the strategic acquisition of KOAS-FM in Las Vegas and refinanced our senior secured credit facilities with terms that provide extended maturities and additional flexibility including the ability to return capital to shareholders.”
He added, “Our third quarter revenue growth principally reflects strength in our Las Vegas, Coastal Carolina, and Augusta market clusters, the cyclical benefit of political advertising and very strong year over year growth in the automotive advertising category. The revenue growth combined with the Company’s streamlined operating structure and ongoing expense management initiatives resulted in the 9.1% rise in 2012 third quarter SOI. Reflecting the operating leverage in our model, on an actual basis, third quarter SOI margins rose to 36.3% up from 34.3% in the same quarter last year.”
Beasley said the company is at its lowest leverage point in 10 years. Going forward, its objective is to take it even lower