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

May 04, 2010 | About:
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10qk

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Beasley Broadcast Group Inc. (BBGI) filed Quarterly Report for the period ended 2010-03-31.

Beasley Broadcast Group Inc. has a market cap of $130.8 million; its shares were traded at around $5.76 with a P/E ratio of 48 and P/S ratio of 1.4.

Highlight of Business Operations:

Net Revenue. The $0.7 million decrease in net revenue during the three months ended March 31, 2010 was primarily due to a $0.6 million decrease at our Miami-Fort Lauderdale market cluster and a $0.3 million decrease at our Fayetteville market cluster. Net revenue was comparable to the same period in 2009 at the remaining market clusters with increases in five markets and decreases in four markets. In August 2009, the Company sold certain radio station assets in Las Vegas which contributed net revenue of $0.3 million during the first quarter of 2009. The decrease in revenue from the radio station assets sold in Las Vegas was offset by a $0.4 million increase at our remaining radio stations in that market.

Cost of Services. The $0.7 million decrease in cost of services during the three months ended March 31, 2010 was primarily due to a decrease of $0.3 million at our Las Vegas market cluster. Cost of services was comparable to the same period in 2009 at the remaining market clusters with decreases in seven markets and increases in three markets. The radio station assets sold in Las Vegas in August 2009 incurred $0.3 million of cost of services during the first quarter of 2009.

Selling, General and Administrative Expenses. The $0.7 million decrease in selling, general and administrative expenses during the three months ended March 31, 2010 was primarily due to a $0.3 million decrease at our Miami-Fort Lauderdale market cluster. Selling, general and administrative expenses were comparable to the same period in 2009 at the remaining market clusters with decreases in eight markets and increases in two markets. The radio station assets sold in Las Vegas in August 2009 incurred $0.3 million of selling, general and administrative expenses during the first quarter of 2009. This decrease was 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 April 27, 2010, we have purchased 2.6 million shares of our Class A common stock for an aggregate $14.0 million.

Net Cash Used In Financing Activities. Net cash used in financing activities in the three months ended March 31, 2010 was primarily due to scheduled repayments of $1.2 million and voluntary repayments of $0.5 million under our credit facility, and payments of $0.6 million of loan fees related to the amended credit agreement. Net cash used in financing activities for the same period in 2009 was primarily due to voluntary repayments of $1.0 million under our credit facility and payments of $0.9 million of loan fees related to the amended credit agreement.

Credit Facility. As of April 27, 2010, the outstanding balance of our credit facility was $150.0 million. As of March 31, 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 $94.2 million. As of March 31, 2010, we had $9.2 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 4.2750% as of December 31, 2009 and March 31, 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.

Read the The complete Report

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