Beasley Broadcast Group, Inc. · NASDAQ:BBGI

Beasley Broadcast — Investor Presentation (2018)

22 slides from Beasley Broadcast's investor presentation, 2018

  1. Slide 1: Beasley Broadcast Group Presentation

    BEASLEY » BROADCAST GROUP PRESENTATION a

  2. 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 EBITDA, Adjusted EBITDA, Pro Forma Net Revenue

  3. Slide 3: Company Highlights

    COMPANY HIGHLIGHTS 1 Leading Local Broadcast Media Company 7 2 Sizeable Clusters with Disciplined and Experienced Strong In-Market Management Team Competitive Positioning 6 3 Diversified Format, Attractive Industry and Advertisers, and End Scaled Digital Platform Markets 5 4 Modest Leverage, Track R

  4. Slide 4: Expanded Geographic Reach and Increased Scale

    EXPANDED GEOGRAPHIC REACH AND INCREASED SCALE 63 stations across 15 attractive markets reaching ~18.1 million unique consumers per week 1 Beasley Broadcast Group Operations – Market (DMA) DETROIT (12) BOSTON (10) NEW JERSEY2 (42) (53) (120) WILMINGTON PHILADELPHIA (9) (79) FAYETTEVILLE CHARLOTTE (24

  5. Slide 5: Beasley Strategic Objectives

    BEASLEY STRATEGIC OBJECTIVES Leading Local Audio Focused Media Company Focus on Accretive Digital Initiatives Consolidation Opportunities Robust Free Modest Leverage Cash Flow 5

  6. Slide 6: Executive Summary

    EXECUTIVE SUMMARY  #4 ranked radio group based on 2016 radio-only revenues with 18.1 million listeners weekly Leading Local Audio-  63 stations across 15 markets. Average 25.2% market share in Top 25 Markets which account for 76% of net revenues Focused Media Company  Beasley radio clusters ranke

  7. Slide 7: Recent Transactions Catapult Beasley to One of the Top Four Radio Broadcasting Groups

    RECENT TRANSACTIONS CATAPULT BEASLEY TO ONE OF THE TOP FOUR RADIO BROADCASTING GROUPS Top 20 Radio Broadcasting Groups, By 2016 Radio Only Revenues Series 1 $2,245.0 $1,430.0 $677.4 $229.0 $241.2 $254.7 $137.1 $142.4 $167.4 $178.1 $195.6 $214.0 $43.2 $49.7 $58.8 $69.2 $71.7 $72.0 $79.1 $123.2 Seri e

  8. Slide 8: Strong Financial Profile in the Industry

    STRONG FINANCIAL PROFILE IN THE INDUSTRY Adjusted EBITDA Margin (LTM)(1)(2) Net Adjusted Debt Net Leverage(1) 28.3% Median: Median: 25.6% 19.6% 5.0x 16.4x 20.8% 19.7% 19.5% 18.1% 17.8% 10.4x 10.1% 5.3x 5.7x 4.1x 4.6x 4.7x 0.6x BBGI SAGA EMMS ETM SALM TSQ CMLS iHEART Free Cash Flow / Total Debt (LTM)

  9. Slide 9: Attractive Industry Fundamentals

    ATTRACTIVE INDUSTRY FUNDAMENTALS Radio remains a highly relevant medium for local advertisers Engaged Audience / Greatest Radio listening remains steady in Reach the face of increased audio Radio is the #1 reach medium in the U.S., competition reaching ~97% of American adults and 96% of The average

  10. Slide 10: Overview of Key Markets

    OVERVIEW OF KEY MARKETS % of ’17 Beasley Market Beasley BBGI Net Market Market Stations Podcast Market Stations Market Key Beasley Stations Revenue Rank Revenue (AM / Brands (AM / FM) Share (1) ($mm) FM) 60 6 Boston 28% 10 $229 32.7% (38 / 22) (1 / 5) 42 7 Philadelphia 18% 9 $212 22.0% (24 / 18) (3

  11. Slide 11: BBGI Digital Platform Positioned for Growth

    BBGI Digital Platform Positioned for Growth Pro forma Beasley has an established digital presence with digital revenues of $13 million in 2017 11.6mm 842k Mobile App 68mm Station Streaming Downloads in PageViews in Sessions Per 2017 2017 Month Online Presence and Streaming  Ranked 7th among all rad

  12. Slide 12: Key Statistics

    KEY STATISTICS Market Statistics (BBGI: NASDAQ) ($ USD in millions except per share) Stock Price (1/31/18) $12.55 Diluted Shares Outstanding 27.8m 52 Week High $18.19 Market Capitalization $348.8 52 Week Low $7.33 Total Debt (as of 12/31/17) $225.0 Avg. Daily Volume (3 mos.) 15,288 Cash (as of 12/31

  13. Slide 13: Diversified Revenue with Strong Competitive Positions

    DIVERSIFIED REVENUE WITH STRONG COMPETITIVE POSITIONS By Advertising Category By Station Format Brokered ; 2% Oldies/ Travel; 2% Political; 1% Hispanic; 2% Nostalgia, 1% Fast Food ; 3% Other; 2% (1) Urban; 7% Beverages; 3% Finance ; 6% Consumer Adult Rock, Products; 9% Contemporary; 24% Consumer 8%

  14. Slide 14: Historical Revenue, SOI and EBITDA

    HISTORICAL REVENUE, SOI AND EBITDA Revenue SOI (1) ($ in millions) ($ in millions) $232.2 $259.7 $250.6 $61.1 $57.4 $59.1 30.3 30.6 28.6 $40.0 29.3 22.2 22.6 $136.7 $101.3 $105.9 $33.2 % % $30.3 % % % % 2014A 2015A 2016A 2017A 2016 PF 2017PF 2014A 2015A 2016A 2017A 2016 PF 2017PF $1.2 $0.2 $4.9 $0.4

  15. Slide 15: Track Record of Performance and Stable Cash Flows

    TRACK RECORD OF PERFORMANCE AND STABLE CASH FLOWS  Beasley has a strong track record of organic top line performance  Actual net revenue has grown steadily from smart acquisitions and continued growth  Beasley’s low capex requirements result in stable free cash flow generation  Free cash flow of

  16. Slide 16: Modest Leverage and Track Record of Deleveraging

    MODEST LEVERAGE AND TRACK RECORD OF DELEVERAGING Beasley’s management has a proven track record of prudent balance sheet management  Current gross leverage of 4.3x (net 4.05x) reduced from peak leverage of 7.1x in Q2 2009 Modest leverage with near-term target of <4.0x and track record of de-leverag

  17. Slide 17: Investor Highlights

    INVESTOR HIGHLIGHTS 1 Leading Local Broadcast Media Company 7 2 Sizeable Clusters with Disciplined and Experienced Strong In-Market Management Team Competitive Positioning 6 3 Diversified Format, Attractive Industry and Advertisers, and End Scaled Digital Platform Markets 5 4 Modest Leverage, Track

  18. Slide 18: Appendix

    BEASLEY -» BROADCAST ae” APPENDIX

  19. Slide 19: Statement of Operations with Reconciliation of Net Income to SOI

    Beasley Broadcast Group, Inc. Statement of Operations with reconciliation of Net Income to SOI Year Year Year Year Three months Three months ended ended ended ended ended ended 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2016 12/31/2017 Net revenue 101,327,661 105,946,670 136,665,344 232,179,4

  20. Slide 20: Reconciliation of Net Income to Pro Forma SOI

    Reconciliation of Net Income to Pro forma SOI Three months ended Twelve months ended December 31, December 31, 2017 2016 2017 2016 Reported net revenue 58,523,448 53,703,990 232,179,463 136,665,344 Acquired stations 11,453,817 25,444,485 35,863,012 150,102,280 Sold stations (3,447,728) (7,719,220) (

  21. Slide 21: Calculation of Adjusted EBITDA

    Calculation of Adjusted EBITDA Year Year Year Year Year Year Year Three months Three months ended ended ended ended ended ended ended ended ended 12/31/2011 12/31/2012 12/31/2013 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2016 12/31/2017 Net revenue 97,698,634 100,240,597 104,905,720 101,327,

  22. Slide 22: Reconciliation of Net Income to FCF

    Reconciliation of Net Income to FCF Year Ended December 31, Quarter Ended December 31, 2014 2015 2016 2017 2016 2017 Net income $ 39,999,367 $ 6,362,322 $ 47,488,413 $ 87,131,169 $ 41,503,814 $ 69,668,948 Corporate general and administrative expenses 8,923,117 8,983,860 10,303,503 15,832,406 2,963,9

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