Beasley Broadcast Group, Inc. · NASDAQ:BBGI
Beasley Broadcast — Debt Investor Presentation (January 2021)
41 slides from Beasley Broadcast's debt investor presentation, Jan 19, 2021
Slide 1: Investor Presentation
Exhibit 99.2 // I N V E S T O R P R E S E N T A T I O N Exhibit 99.2 // I N V E S T O R P R E S E N T A T I O N
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures This presentation includes certain financial measures that have not been prepared in a manner that complies with generally accepted accounting principles in the United States (“GAAP”), including, without limitation, EBITDA, Adjusted EBITDA,
Slide 3: Notice to and Undertaking by Recipients
Notice to and Undertaking by Recipients THIS PRESENTATION HAS BEEN PREPARED SOLELY FOR INFORMATIONAL PURPOSES FROM INFORMATION SUPPLIED SOLELY BY OR ON BEHALF OF BEASLEY BROADCAST GROUP, INC. AND ITS SUBSIDIARIES (“BEASLEY”, “WE”, “US”, “OUR” OR THE “COMPANY”) AND IS BEING FURNISHED BY THE COMPANY.
Slide 4: Today's Presenters
Today’s Presenters Caroline Beasley Marie Tedesco Justin Chase Tina Murley CEO CFO CCO SVP, Sales Beasley Broadcast Group // Investor Presentation 4 Today’s Presenters Caroline Beasley Marie Tedesco Justin Chase Tina Murley CEO CFO CCO SVP, Sales Beasley Broadcast Group // Investor Presentation 4
Slide 5: Table of Contents
Table of Contents I. Transaction Overview II. Beasley Business at a Glance III. Key Credit Highlights IV. Financial Overview V. Appendix Beasley Broadcast Group // Investor Presentation 5 Table of Contents I. Transaction Overview II. Beasley Business at a Glance III. Key Credit Highlights IV. Financ
Slide 6: I. Transaction Overview
I. Transaction Overview I. Transaction Overview
Slide 7: Transaction Summary
Transaction Summary § Beasley Broadcast Group, Inc. (“Beasley” or the “Company”) is a multi-platform media company providing radio, digital media and marketing services, and Esports content to over 20 million weekly consumers § Beasley’s core radio business is focused on the middle segment of the ma
Slide 8: Pro Forma Capitalization Sources & Uses
Pro Forma Capitalization Sources & Uses § Sources Amount Uses Amount New Senior Secured Notes $ 280 Paydown Existing Credit Facilities and Other Debt $ 271 Estimated Transaction Fees and Expenses 6 Cash to Balance Sheet 3 Total Sources $ 280 Total Uses $ 280 Pro Forma Capitalization As of 9/30/2020
Slide 9: Illustrative Term Sheet
Illustrative Term Sheet Issuer: n Beasley Mezzanine Holdings, LLC (the “Issuer”) n A first priority security interest in (a) the equity interests of, or owned by, the Issuer and each subsidiary guarantor and (b) Security: substantially all tangible and intangible personal property and material fee-o
Slide 10: II. Beasley Business at a Glance
II. Beasley Business at a Glance II. Beasley Business at a Glance
Slide 11: Beasley's Core Business at a Glance
Beasley’s Core Business at a Glance Radio and Digital Media Group Diversified Audio Distribution Strategy in the US serving Consumers Weekly, through its Stations and Markets, with Page Views, Streams, Podcast Downloads, Mobile App. Sessions, Digital Marketing Services Customers Financial Highlights
Slide 12: Beasley Geographic Footprint
Beasley Geographic Footprint 1 63 stations and 16 attractive markets reaching ~20 million unique consumers per week Source: Company information (1) New Jersey includes three distinct markets within the state Beasley Broadcast Group // Investor Presentation 12 Beasley Geographic Footprint 1 63 statio
Slide 13: Strong Content and Powerful Local Brands
Strong Content and Powerful Local Brands Felger & Mazz WMMR - 93.3 FM Felger & Massarotti is an Award-winning afternoon radio show WMMR is one of the country’s premiere rock radio stations. hosted by Michael Felger and Tony Massarotti, airing from 2 to 6 Having signed on in 1968, ‘MMR is one of Amer
Slide 14: Beasley Serves Some of the Largest Advertisers in the U.S. | National
Beasley Serves Some of the Largest Advertisers in the U.S. | Selected National Radio Advertisers FY19 Total Ad Top Market Beasley Product Customer Markets Spend in Beasley Highlights Rank Solution Markets ($mm) “When I can use local endorsers in an organic way to talk Radio, Studio Naming about our
Slide 15: Beasley Serves Some of the Largest Advertisers in the U.S. | Local
Beasley Serves Some of the Largest Advertisers in the U.S. | Selected Local Radio Advertisers FY19 Total Ad Top Spend in Beasley Product Customer Markets Market Highlights Beasley Markets Solution Rank ($mm) Radio, Naming Rights, New England Honda ad spend in Beasley markets was $3.5mm PbP, Event Ma
Slide 16: Digital Media and Marketing Services
Digital Media and Marketing Services Current Solutions Planned Expansion • Separate Digital Agency selling Station Companion Includes all Current • Sell digital to existing radio digital to non-radio advertisers advertisers Websites Solutions, Plus: • Will leverage current product • High operating l
Slide 17: Digital Media and Marketing Services Market
Digital Media and Marketing Services US Digital Media and Marketing Services Market The Company 2020E U.S. Digital Advertising Revenue Digital Media and Marketing Services Revenue Growth (Per Kagan, S&P Global Market Intelligence; Local Addressable Digital Media Spending Across Beasley ($ in million
Slide 18: Content Leadership in Esports
Content Leadership in Esports (1) § Beasley owns Checkpoint XP, a leading Esports syndicated audio show currently featured P18-34 Audience Composition on 70 radio stations, daily podcasts on Twitch (video game streaming platform) and 69% beyond 70% § Beasley acquired the Overwatch League’s Houston O
Slide 19: III. Key Credit Highlights
III. Key Credit Highlights III. Key Credit Highlights
Slide 20: Beasley Key Credit Highlights
Beasley Key Credit Highlights Stable Industry Dynamics 1 Leading Market Positions; Station Market Shares Outperform Footprints due to Strong 2 Engagement with Brands and Content Diversified Revenue Mix in Core Radio Business 3 Recent Advertiser Demand and Revenue Pacing Reflects Recovery Underway fr
Slide 21: Stable Industry Dynamics
1 Stable Industry Dynamics 34% of 34% of Ad Market Ad Market in 1999 in 2019 % of Americans Age 12+ Who Listen to AM/FM and Online Radio Weekly 93% 92% 92% 92% 92% 91% 91% 91% 90% 89% Radio reach has been resilient through prior market cycles 57% § ~90% of radio listeners 53% 50% in US and Canada tu
Slide 22: Stable Industry Dynamics (Cont'd)
1 Stable Industry Dynamics (Cont’d) Radio remains a highly relevant medium for local advertisers Radio Listening Remains Steady in the Face of Engaged Audience / Greatest Reach Radio is the #1 reach medium in the U.S., Increased Audio Competition reaching ~92% of American adults and 90% of Millennia
Slide 23: Stable Industry Dynamics (Cont'd): Share of Ad-supported Audio
1 Stable Industry Dynamics (Cont’d) Radio Share of Ad-supported Audio Time Among Persons 18+ Remains Resilient Through COVID Share of Ear: Q2 2019 Share of Ear: Q2 2020 AM/FM Radio 78% AM/FM Radio 76% Ad-supported 8% Podcasts 9% Pandora Ad-supported Podcasts 7% 8% Pandora Ad-supported Spotify 4% Ad-
Slide 24: Stable Industry Dynamics (Cont'd)
1 Stable Industry Dynamics (Cont’d) Fact Implication v 75% of listeners explicitly use broadcast Ø The social nature of human beings creates a radio for companionship timeless component of radio’s reach v 87% of listeners see “local feel” as radio’s Ø Advertisers can harness the power of radio’s pri
Slide 25: Leading Market Positions; Significant Market Share
Leading Market Positions; Significant Total and Local Market Share due to Strong 2 Engagement with Brands and Content Beasley Beasley Percent 2019 Market Beasley Key US Total Local of Beasley Market Ad Stations Stations Beasley Market Market Market Market Key Beasley Stations 2019 Net Revenue (AM /
Slide 26: Highly Diversified Revenue Mix in Core Radio Business
3 Highly Diversified Revenue Mix in Core Radio Business By Station Format By Advertising Category 1% 2% 3% 1% 2% 2% 2% 4% 3% Consumer Services Rock Entertainment 10% 24% News / Talk / Sports 23% 6% 26% Retail Country 6% Auto Classic Hits 9% Telecom/Utility Contemporary Hits Consumer Products 9% Fina
Slide 27: Advertiser Demand is Recovering After COVID-related lows
4 Advertiser Demand is Recovering After COVID-related lows in April (1) Net Adds ($ in millions) 26.2 24.0 23.9 23.2 22.6 22.4 21.3 21.1 20.7 20.7 19.9 69.8 19.5 19.4 19.2 18.9 66.5 18.0 17.9 17.1 16.7 15.7 12.8 11.9 9.1 8.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Q4 2020 2019 YoY Net Add %
Slide 28: Actuals Exceed Pacings Due to Shorter Booking Lead Time
4 Actuals Exceed Pacings Due to Shorter Booking Lead Time Pacings as of 9/21/20 vs. Actuals Pacings as of 1/6/21 ($ in millions) (Pacings shown in white) (Actuals shown in black) 26.2 14.8 23.9 24.0 23.2 22.6 20.7 11.9 19.5 19.4 10.2 22.8 8.2 18.5 17.0 13.0 12.3 10.5 10.7 8.0 Sept Oct Nov Dec Jan Fe
Slide 29: Continually Exploring Ways to Leverage Core Brands and Content
5 Continually Exploring Ways to Leverage Core Brands and Content to Enter New Businesses Esports Industry is Growing, Increasing Team Valuations 1 Esports Audience Growth § Esports is an established, fast growing sports entertainment industry (Millions of viewers) § Per Newzoo estimates, the global
Slide 30: Disciplined / Experienced Management Team
6 Disciplined / Experienced Management Team with Strong Family Sponsorship and Alignment Since 1961 Long Standing Family Sponsorship George G. Beasley Caroline Beasley Bruce G. Beasley Brian E. Beasley Erika Beasley Chairman Chief Executive Officer President Chief Operating Officer VP of Digital Con
Slide 31: Beasley Key Credit Highlights
Beasley Key Credit Highlights Stable Industry Dynamics 1 Leading Market Positions; Station Market Shares Outperform Footprints due to Strong 2 Engagement with Brands and Content Diversified Revenue Mix in Core Radio Business 3 Recent Advertiser Demand and Revenue Pacing Reflects Recovery Underway fr
Slide 32: IV. Financial Overview
IV. Financial Overview IV. Financial Overview
Slide 33: Historical Financials
Historical Financials ($ in millions) 1 Net Revenue Adjusted EBITDA ’17-’19 CAGR: 6.1% ’17-’19 CAGR: 0.5% $ 52 $ 55 $ 53 $ 262 $ 257 $ 232 $ 210 $ 14 2017 2018 2019 LTM 9/30/20 2017 2018 2019 LTM 9/30/20 % Rev. 22.5% 21.3% 20.3% 6.6% 2 1 Capital Expenditures Free Cash Flow ’17-’19 CAGR: 46.8% ’17-’1
Slide 34: Recent Performance Update
Recent Performance Update ($ in millions) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4E 1 2019 2019 2019 2019 2020 2020 2020 2020 Commercial $ 49.6 $ 57.4 $ 57.2 $ 59.7 $ 47.4 $ 24.2 $ 42.2 Advertising Digital Advertising 3.5 4.9 5.1 6.8 5.4 4.2 5.0 Other 4.6 3.3 3.9 5.6 4.9 2.0 2.5 Net Revenue $ 57.7 $ 65.7 $ 66.1 $ 72
Slide 35: FY20 Financials
FY20 Financials ($ in millions) Key Takeaways § Consistent revenue recovery since April 1 1 1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec trough, with strong political revenue contribution of $6.9mm in October, $1.1mm in November and Net $ 18.7 $ 20.0 $ 18.9 $ 8.3 $ 9.5 $ 12.6 $ 13.2 $ 16.4 $20.
Slide 36: Capital Allocation Priorities, Family Ownership and Liquidity
Disciplined / Experienced Management Team With Strong Family Sponsorship and Alignment Since 1961 Capital Allocation Priorities Family Ownership Stake as of December 31, 2020 Family Member Class A Class B § Due to the current uncertain economic conditions, our #1 priority is cash preservation George
Slide 37: V. Appendix
V. Appendix V. Appendix
Slide 38: Reconciliation of Non-GAAP Adjusted EBITDA
Reconciliation of Non-GAAP Adjusted EBITDA Adjusted EBITDA Commentary ($ in millions) FY2017 FY2018 FY2019 LTM 9/30/20 1 • Tax Add-back: Includes property and intangible taxes expensed to radio stations in market Net Income (Loss) Attributable to Beasley Stockholders $ 87.1 $ 6.5 $ 13.5 $(24.2) • Ot
Slide 39: Reconciliation of Non-GAAP Adjusted EBITDA (Quarterly)
Reconciliation of Non-GAAP Adjusted EBITDA Adjusted EBITDA ($ in millions) Q1'2019 Q2'2019 Q3'2019 Q4'2019 Q1'2020 Q2'2020 Q3'2020 Net Income (Loss) Attributable to Beasley Stockholders $ 1.4 $ 4.3 $ 3.0 $ 4.8 $(8.8) $(17.7) $(2.4) Interest Expense 4.6 4.5 4.4 4.5 4.2 3.9 4.5 Income Tax Expense (Ben
Slide 40: Reconciliation of Non-GAAP Station Operating Income
Reconciliation of Non-GAAP Station Operating Income SOI ($ in millions) Q1'2019 Q2'2019 Q3'2019 Q4'2019 Q1'2020 Q2'2020 Q3'2020 Net Income (Loss) Attributable to Beasley Stockholders $ 1.4 $ 4.3 $ 3.0 $ 4.8 $(8.8) $(17.7) $(2.4) Corporate Expenses 5.0 5.4 5.3 5.5 4.5 3.7 3.7 Transaction Expenses 0.2
Slide 41: Reconciliation of Non-GAAP Free Cash Flow
Reconciliation of Non-GAAP Free Cash Flow Free Cash Flow ($ in millions) FY2017 FY2018 FY2019 LTM 9/30/20 Net Revenue $ 232.2 $ 257.5 $ 261.6 $ 209.8 Operating Expenses (174.8) (195.8) (201.1) (190.3) Corporate Expenses (15.8) (16.3) (21.2) (17.4) Stock-based Compensation Expense 1.7 1.9 2.1 1.1 1 3
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