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Beasley Broadcast Group Inc. Reports Operating Results (10-Q)

November 01, 2010 | About:
10qk

10qk

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Beasley Broadcast Group Inc. (BBGI) filed Quarterly Report for the period ended 2010-09-30.

Beasley Broadcast Group Inc. has a market cap of $99.1 million; its shares were traded at around $4.37 with a P/E ratio of 24.3 and P/S ratio of 1.1. BBGI is in the portfolios of Mario Gabelli of GAMCO Investors.

Highlight of Business Operations:

Station Operating Expenses. The $1.8 million decrease in station operating expenses during the three months ended September 30, 2010 was primarily due to a $1.5 million decrease at our Miami-Fort Lauderdale market cluster. This decrease was primarily due to the non-renewal of the Miami Dolphins football team program rights agreement which incurred station operating expenses of $1.2 million during the third quarter of 2009. The radio station assets sold in Las Vegas in August 2009 incurred station operating expenses of $0.4 million during the third quarter of 2009. This decrease was partially offset by an increase at our remaining radio stations in that market.

Station Operating Expenses. The $3.6 million decrease in station operating expenses during the nine months ended September 30, 2010 was primarily due to a $2.4 million decrease at our Miami-Fort Lauderdale market cluster, a $0.7 million decrease at our Las Vegas market cluster, and a $0.5 million decrease at our Philadelphia market cluster. The decrease in Miami-Fort Lauderdale was primarily due to the non-renewal of the Miami Dolphins football team program rights agreement which incurred station operating expenses of $1.3 million during the during the nine months ended September 30, 2009. The radio station assets sold in Las Vegas in August 2009 incurred station operating expenses of $1.4 million during the nine months ended September 30, 2009. This decrease was partially offset by an increase at our remaining radio stations in that market.

Our credit agreement prohibits us from repurchasing additional shares of our common stock until our consolidated total debt is less than five times our consolidated operating cash flow at which time we are permitted to repurchase up to an aggregate of $10.0 million of our common stock. Our credit agreement does permit us to repurchase up to $0.5 million of our common stock per year in connection with the vesting of restricted stock. As of October 25, 2010, we have purchased 2.7 million shares of our Class A common stock for an aggregate $14.2 million.

Net Cash Provided By (Used In) Investing Activities. Net cash used in investing activities in the nine months ended September 30, 2010 was primarily due to cash payments for capital expenditures of $0.7 million. Net cash provided by investing activities for the same period in 2009 was primarily due to cash proceeds of $15.3 million from the sale of assets in Las Vegas, Nevada, which were partially offset by cash payments for capital expenditures of $0.5 million.

Net Cash Used In Financing Activities. Net cash used in financing activities in the nine months ended September 30, 2010 was primarily due to repayments of $6.5 million under our credit facility, payments of $0.6 million of loan fees related to the amended credit agreement, and $0.3 million for repurchases of our Class A common stock. Net cash used in financing activities for the same period in 2009 was primarily due to repayments of $20.7 million under our credit facility, and payments of $0.8 million of loan fees related to the amended credit agreement.

Credit Facility. As of October 25, 2010, the outstanding balance of our credit facility was $145.3 million. As of September 30, 2010, the credit facility consists of a revolving credit loan with a maximum commitment of $65.0 million and a term loan with a remaining balance of $90.5 million. As of September 30, 2010, we had $10.2 million in remaining commitments available under the revolving credit loan of our credit facility. The revolving credit loan includes a $5.0 million sub-limit for letters of credit which may not be increased. At our election, the revolving credit loan and term loan may bear interest at either the base rate or LIBOR plus a margin that is determined by our debt to operating cash flow ratio. The base rate is equal to the higher of the prime rate, the federal funds effective rate, or the one month LIBOR quoted rate plus 1.0%. Interest on base rate loans is payable quarterly through maturity. Interest on LIBOR loans is payable on the last day of the selected LIBOR period and, if the selected period is longer than three months, every three months after the beginning of the LIBOR period. The revolving credit loan and term loan carried interest, based on LIBOR, at 4.2747% and 4.3125% as of December 31, 2009 and September 30, 2010, respectively, and mature on June 30, 2015. The scheduled reductions in the amount available under the revolving credit loan may require principal repayments if the outstanding balance at that time exceeds the maximum amount available under the revolving credit loan.

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