Beasley Broadcast Group, Inc. · NASDAQ:BBGI
Beasley Broadcast — Investor Presentation (July 2018)
23 slides from Beasley Broadcast's investor presentation, Jul 23, 2018
Slide 1: CAROLINE BEASLEY Chief Executive Officer MARIE TEDESCO Chief Financial Officer Exhibit 99.1
CAROLINE BEASLEY Chief Executive Officer MARIE TEDESCO Chief Financial Officer Exhibit 99.1
Slide 2: Non-GAAP and forward-looking statements
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, Credit Agreement Adjusted EBITDA, Free Cash Flow and Station Operating Income (collectively, the
Slide 3: Executive Summary
EXECUTIVE SUMMARY Leading Local Audio-Focused Media Company #4 ranked radio group based on 2016 radio-only revenues with 18.6 million listeners weekly (three month average) Beasley radio clusters ranked top 3 in market share in 13 of 14 markets that are rated (1), driven by compelling power ratios F
Slide 4: Expanded Geographic Reach and Increased Scale
EXPANDED GEOGRAPHIC REACH AND INCREASED SCALE 63 stations across 15 attractive markets reaching ~18.6 million unique consumers per week1 ATLANTA (8) AUGUSTA (109) BOCA RATON (48) BOSTON (10) CHARLOTTE (24) FAYETTEVILLE (129) DETROIT (12) FT. MYERS (60) LAS VEGAS (31) NEW JERSEY2 (42) (53) (120) WILM
Slide 5: Overview of Key Markets
OVERVIEW OF KEY MARKETS Source: Miller Kaplan and company materials Note: Percent of BBGI 2017 Net Revenue is pro forma as if the WBZ-FM/WMJX-FM station swap and the divestiture of our Greenville-New Bern-Jacksonville stations had occurred on January 1, 2017. Market Percent of BBGI 2017 Net Revenue
Slide 6: Diversified Revenue with Strong Competitive Positions
By Advertising Category By Station Format DIVERSIFIED REVENUE WITH STRONG COMPETITIVE POSITIONS Note: Data is based on Pro forma 2017 net revenue as if the WBZ-FM/WMJX-FM station swap and the divestiture of our Greenville-New Bern-Jacksonville stations had occurred on January 1, 2017.. (1) Includes
Slide 7: Strong Financial Profile in the Industry
STRONG FINANCIAL PROFILE IN THE INDUSTRY Source: Comparable company information sourced from public filings and supplemental materials. (1) Beasley’s Adjusted EBITDA is calculated using Credit Agreement Adjusted EBITDA. (2) Medians exclude Saga. (3) Beasley figures are pro forma as if the WBZ-FM/WMJ
Slide 8: Beasley Strategic Objectives
BEASLEY STRATEGIC OBJECTIVES Robust Free Cash Flow Return Shareholder Value Modest Leverage Focus on Accretive Consolidation Opportunities Leading Local Audio/Digital Focused Media Company
Slide 9: Accretive Deals Drive Free Cash Flow Growth
ACCRETIVE DEALS DRIVE FREE CASH FLOW GROWTH Greater Media – Paid 6.8x of Pro Forma SOI (1) Entercom Boston WBZ-FM/WMJX-FM swap – swapped at 3.1x incremental SOI (2) Free Cash Flow ($ in millions) Free Cash Flow 6 BBGI paid 6.8x Greater Media’s 2016 pro forma SOI (after giving effect to anticipated p
Slide 10: Recent Transactions Catapult Beasley to One of the Top Four Radio Groups
RECENT TRANSACTIONS CATAPULT BEASLEY TO ONE OF THE TOP FOUR RADIO BROADCASTING GROUPS Source: SNL Financial. Beasley’s radio only revenues is the same as Beasley’s net revenue and is shown on a pro forma basis as if the Greater Media acquisition, the WBZ-FM/WMJX-FM station swap and the divestiture o
Slide 11: Attractive Industry Fundamentals
ATTRACTIVE INDUSTRY FUNDAMENTALS Radio remains a highly relevant medium for local advertisers Source: Nielsen Total Audience Report Q2 2017. Source: Edison Research “Share of Ear” study Q3-Q4 2016/Q2 2017 persons 18+. Source: Nielsen Q2 2017 Total Audience Report. Figure based on users of radio. Sou
Slide 12: Online Presence and Streaming
Online Presence and Streaming Ranked 7th among all radio broadcasters in the U.S., with 14.3 million streaming sessions per month (based on six-month average ending 6/30/2018) 37 million page views to 63 station websites YTD 6/30/2018 (compared to 68 million for the full year 2017); mobile devices a
Slide 13: Key Statistics
KEY STATISTICS Market Statistics (BBGI: NASDAQ) ($ USD in millions except per share) Stock Price (as of 7/13/2018) $11.25 $11.30 Market Capitalization (as of 7/13/2018) $314 52 Week High/Low $14.05/$8.65 $16.55/$8.40 Total Debt (as of 3/31/18) $223 Dividend Yield 1.8% $8.40 Cash (as of 3/31/18) $13
Slide 14: 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 $23.8 m
Slide 15: Net Revenue, SOI, Credit Agreement Adjusted EBITDA and Capital Expenditures
NET REVENUE, SOI, CREDIT AGREEMENT ADJUSTED EBITDA AND CAPITAL EXPENDITURES $1.1 $0.2 $4.9(1) $0.4 $0.4 $0.4 Political Revenue ($ in millions) NET REVENUE ($ in millions) SOI (Margin %) ($ in millions) 30.3% 30.6% 28.6% 29.3% 22.2% 22.6% CREDIT AG’T ADJUSTED EBITDA (Margin %) ($ in millions) $28.2 2
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 net leverage of 4.2x (as of 3/31/2018) reduced from peak net leverage of approximately 7x in Q2 2009 Modest net leverage with near-term target of <4.0x and trac
Slide 17: Investor Highlights
INVESTOR HIGHLIGHTS Disciplined and Experienced Management Team 6 Leading Local Broadcast Media Company 1 Attractive Industry and Scaled Digital Platform 5 Sizeable Clusters with Strong In-Market Competitive Positioning 2 Modest Leverage and a Track Record of De-Leveraging 4 Strong Financial Profile
Slide 18: BBGI Announces Acquisition of Philadelphia's Heritage Country Station
Purchase Price of $38 million Revenue and proforma SOI of approximately $9 million and $5 million, respectively Transaction is expected to be immediately accretive to FCF No material change expected to LTM Net Leverage on a pro forma basis after accounting for this acquisition . BBGI Announces the a
Slide 19: Appendix
- BROADGAST, GROUP NASDAQ: BBG! APPENDIX
Slide 20: Reconciliation of SOI and Pro Forma SOI to Net Income
Reconciliation of SOF and Pro Forma SOX to Net Income precaton and amortization Income tax expense (Dane) ‘tre nce (expense), net corporate general and acminsrtve expenses tom 1 WOZ/WHIXY Now Be Pr-forma op. expenses WAZ/WMIX/ New Bern PRO FORMA SOI 39,999,67 630232 a7asa1s—87,101,09—76,409.401 7406
Slide 21: BROADCAST GROUP
BROADCAST GROUP tax expense (benef) rod roman ite TOR “wete months ended oot 930) TESST) (4.266398) (44,281,086) sa.2m 109.94110) (0,707 93) uai2448) (450,707) 3 (14,714,208) 22,247 : (7s33.292) 415.925 (256,198) 50,860, 30 2.539,06 (oz) warn os 01 i 8 9
Slide 22: Calculation of Pro Forma Net Revenue
BROADCAST GROUP Calculation of Pro Forma Net Revenue ‘Twelve months ended December 31, 2016 2017 Reported net revenue 136,636,803 232,179,463 ‘Acquired stations 150,102,278 35,863,012 Sold stations (27,058,549) (17,432,333) Pro-forma net revenue 259,680,532 250,610,142 ‘Three months ended 31, 2017 2
Slide 23: BROADCAST GROUP
BROADCAST GROUP IM Ended March 31, “Three Months Ended March 31, 4 2015 2016 201 2018 2017 18 et in $ 39,999,367 § 6,362,322 § a7a00ai3 § o7A1@ GF TeAwAGL§7A86A6 —F — (.AGLATE) Non-cash stack based compensation 4317.90 11125 ‘woos 3,745,194 2,165,167 197,739 ‘zz ‘Transaction expenses 1.261,31 917 6,
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