Beasley Broadcast Group, Inc. (NASDAQ:BBGI) Q1 2024 Earnings Call Transcript

This strategic realignment will enable us to improve our operating efficiency while also reducing our leverage as we continue to best serve the needs of our valued audiences, advertisers and shareholders. Beyond next quarter, we expect the asset sales we made in late ’23 to impact our year-over-year comps through third quarter. However, we remain optimistic about our growth prospects in ’24, given our anticipated strong political spend in the back half of the year and expectations for continued growth in digital. We’re also seeing some positive signs that the national advertising market is beginning to stabilize. But we remain mindful of the current economic environment and are taking actions to further reduce our cost structure. Finally, we received $6 million for our BMI shares in the first quarter.

And we intend to use this cash to reduce debt, in line with our continuing effort to right-size our capital structure, reduce leverage and bring more dollars to the free cash flow line. So in closing, I’d like to thank our team members across the company for everything that they’ve done and they are doing to focus forward. And I thank you all for attending today. And Marie, I think we have a few questions.

A – Marie Tedesco: Thanks, Caroline. Yes, we received a few questions that were not particularly addressed in our prepared remarks, and here comes the first one. Could you give an update on the bond maturity in February of 2026?

Caroline Beasley: Yes. So what I can say is that we are highly focused on addressing the maturity of our bonds. And our goal is to have this resolved as soon as possible as this is a top priority for the company.

Marie Tedesco: The next question is, is there anything left of esports at this point?

Caroline Beasley: So we no longer have any teams in esports at this point.

Marie Tedesco: Great. And the last question. How much of the $6.8 million have been implemented? And when should we see this flow through? So out of the $6.8 million, $3.8 million is related to the headcount reduction that we just completed, including wages and benefits, and these have been implemented. The remainder is related to reductions in cost of goods sold, research and marketing and other operating expenses. But keep in mind that the $6.8 million relates to the current month through the end of the year, and this will be higher on an annual basis. And that’s all the questions.

Caroline Beasley: All right. Great. Well, thank you again for attending today’s call. And feel free, as always, to reach out to Marie or myself with any follow-up questions. Thank you.

Operator: Thank you. This concludes today’s conference call. You may disconnect your lines at this time. Thank you for your participation.