Beasley Broadcast Group, Inc. · NASDAQ:BBGI
Beasley Broadcast — Debt Investor Presentation (September 2016)
55 slides from Beasley Broadcast's debt investor presentation, Sep 7, 2016
Slide 1: Lender Presentation
Exhibit 99.1 Lender Presentation September 7th, 2016
Slide 2: Forward-Looking Statements
Forward-Looking This current “intends,” “projects,” Factors certain cost costs, on transaction or business; economic, 10-K Actual obligation Important Beasley ENCOURAGED CONTAIN be other 2Corporate identifiable able the savings, presentation materials filings quarterly liabilities interests results,
Slide 3: Presenters
PresenterBeasley Presenters 3Caroline Title Company Interim Chief Executive Officer / Chief Financial Officer Marie Tedesco Vice President of Finance JF Chaput Leveraged Finance Judith Fishlow Minter Head of Loan Capital Markets
Slide 4: Table of Contents
Table I. II. 4III. Transaction Pro Pre-Closing ofForma Contents Beasley Overview Expense Highlights Reductions & Combination Synergies IV. Industry Observations V. Historical Financial Overview Appendix
Slide 5: Transaction Overview
TransactionI Overview SECTION
Slide 6: Executive Summary
Executive Greater and appoint 6n-Scale: Assets $220 Consideration Enhances Compelling Discussions No $20 The Oncertain Required Repayment Pro cash July million forma Greater Beasley million Media, one will tax 19th, Summary Ability other asset of for be 5-yearRevolvingCreditFacility(“Revolver”) impa
Slide 7: Transaction Sources and Uses
Transaction Sources ($ Cash Revolver Existing New Capital Total Net Beasley Greater PF Note: (1) (2) (3) Combination (4) 7closing. As AmountLeverage?AmountLeverage Sources Estimated Pro inLTM Total millions) Term Beasley 5.4 Greater Inclusive See from and Sources Debt of Financials Forma Leases Medi
Slide 8: Pro Forma Beasley Highlights
Pro Forma II SECTION Beasley Highlights
Slide 9: Key Highlights
Key Leading Media Geographically Across Sizeable Competitive Scaled Poised -72 Robust Attractive with Cost Modest Record Proven nStrong Note: (1) (2) Interest (3) 9(4) Websites 73As Company Despite Near-term? Effective Strong Monetization Strict Experienced Management Weekly Reflects See station-bra
Slide 10: A Powerful Standalone Beasley Platform
A Powerful Standalone Beasley Total Weekly Number Net Station Adjusted % Note: (1) (2) (3) (4) (5) (6) (7) (8) 10 Margin Accounts Weekly Does Reflects Includes Revenues Number Financials Operating Cume GMPF of not EBITDA 29.4% 23.0% Stations Employees Cume LTM Combination Regional, $1.8 $7.9 $2.4 $6
Slide 11: Pro Forma Adjusted EBITDA Bridge
Pre-Closing Annualized ($ $6.2 $29.7 $4.7 $2.4$60.1 (At $7.9 Beasley $24.3 $21.8 Timing Adjusted EBITDA(2) Source: Note: LTM (2) (3) closes 11 inIncludes Greater Closing)(< (1) millions) 6/30/2016 The $54.0($1.0 . Beasley LTM EBITDA EBITDA Media Expense Expense standalone (Excluding 6/30/2016 12syne
Slide 12: Top Radio Broadcasting Groups by Revenue
Greater Top 2015 $48 $59 $76$76$78 $93$102 $112 $134 #17$145 #14 $221$224$224 $242$247 $252 $283$287 #9 $442 $502 $1,169 $1,231 #$3,284 PF $32 45 Source: Stations (1) 12Total 18 Does $48$53 25Radio 3425343949721452991721232525311673556760124309454117858 (1) Radio Media Company notOnly account Broadc
Slide 13: Strong Pro Forma Market Positions
Strong Pro 1M 35 42F 6B 25 73 Greater Markets Assets Owned Market 98Rank 10 12 The TOTAL73 Source: 13 M easley Atlanta, Philadelphia, arkets Boston, Detroit, Forma /total AM Stations to Radio #and MarketMarketMarket /Media BIA. current 162 where Operated radio ofCo.Market# be 52 GA Statistics MI MA
Slide 14: Diversified Greater Beasley Market Mix
Diversified Greater Beasley Philadelphia 2% Boston DetroitPhiladelphia 13% West Beach Wilmington 1% New 3% Augusta 9% Fayetteville 0%3% 11% Fort 8% 7% Las PhiladelphiaTampa 6% LTM 18% Source: Note: (1) (2) (3) 14 Includes Boston9%Fayetteville 26%4% 4% Detroit7% BostonFayettevilleAtlanta New Charlott
Slide 15: Differentiated Competitive Positioning
Differentiated On Pro 80%+ 60% Greenville, Share 40% Market Tampa, Beasley Wilmington, 20% Las W. Atlanta, Rank: 0Power 0% Number (1) 151 Palm, Pro a2345678 Forma Vegas, Fayetteville, Charlotte, Rank: pro Power #1 #3 #3Power #15Power Morristown Ratio: forma Power FL Monmouth, GARank: of forma FLPowe
Slide 16: Beasley's Digital Platform Is Poised for Growth
Online Beasley’sDigitalPlatformisPoisedforGrowth Ranked radio streaming Nearly Each 6.3 websites to Digital Mobile visits including with In and stations mobile unique approximately each Pro Source: 16 access 2015, million forma Streaming the an month month, broadcasters, were 360k Presence listeners
Slide 17: Strong Financial Profile vs. Industry Peers
Strong Adjusted 26.6% 20.7% 9.9x 23.9% 0.5x 3.9x 15.4%4.4x 18.4% 5.4x5.4x5.5x Free 17.4% 9.4% 2.8x 3.2x 3.4x 14.9% Pro 3.9% 7.5%1.9x1.7x 8.5% Source: Note: (1) 17 Reflects Forma Cash 2.5x Beasley 26.1% 20.4% 16.8% Financial Comparable EBITDA Flow(1) Pro $39.5 Median: figures Forma Profile million Ma
Slide 18: Modest Leverage and Deleveraging Track Record
Modest Beasley’s Current Repaid Strong Suspended Strategic 6.2x 7.0x 7.1x 8.0x 6.0x 5.0x 4.0x 2007 2.9x 0.0x 1.0x 2.0x 3.0x Total 6/30/2016Leverage6/30/2016 Cum. Note: (1) 18 Excludes 6.0x 5.2x 4.6x4.4x 3.8x3.5x3.5x3.8x3.4x 20082009201020112012201320142015LTM Debt Debt Financials expense over Levera
Slide 19: Immediate Opportunity and Operating Strategy
Beasley Immediate Phase Opportunity ?Strong Attractive Effective Increase Expand Adopt Enhance Maximize Achieve Maintain Execute Prudent Focus Continue 19 Ion relevant and digital hyper balance Pro Detroit aggregation operating user strict core achieving cross-platform anticipating and cash executio
Slide 20: Pre-Closing Expense Reductions & Combination Synergies
Pre-ClosingIIIExpense Reductions & Combination Synergies SECTION
Slide 21: Pre-Closing Expense Reductions Analysis
Standalone $7.9 Market Boston Charlotte Detroit New Philadelphia Total LTM 5.3% 25.6% 27.8% 29.4% Pro 20.3% Note: (1) 21 Greater Forma million Jersey Annual 6/30/2016 (1) Analysis $1.2 $2.4 LTM $1.0 Greater Media Greater $1.4 of $1.9 6/30/2016 Cost does annual Standalone 6/30/2016 Synergies: Media M
Slide 22: Combination Synergies Detail
Projected LTM Category ($ and Entertainment Consulting Corporate PHASE Benefit Various Labor Synergies OPERATING nSports formatted Additional Wages nReinvestment Miscellaneous Adjustments Total Note: 22 inTravel millions) 6/30/2016 Phase Operating Combination Analysis /Detroit Local Savings Consulti
Slide 23: Expense Reduction Timetable
Timetable Expense LTM ($ Pre-Closing Amount PhaseICostSynergies–Corporate PhaseIICostSynergies–Stations Operating Run Post-Closing Vast with (1) 23 synergies. inCorporate Rate majority remainder millions) 6/30/20162016E Reduction Run-Rate Expenses forGreater One of synergies Standalone AnnualDec-16M
Slide 24: Industry Observations
Industry Observations SECTION IV
Slide 25: Attractive Radio Industry Fundamentals
Attractive Engaged reaching Cross Seamless Highest Radio jams other and Cost Low attractive media “In prior dominate -different (1) (3) (4) 25Helen Source: an on-demand iPod/MP3 cost effective (up to audio platform remains is programming’s landscape increasingly Katz, and programming the stages, ~97
Slide 26: Projected Radio Industry Revenue
Projected Radio ($ $20.0 2015—2024 CAGR $25.0 $17.3 $18.4$18.6 $2.0 $15.0 $10.0 $10.6 $2.7 0.8% $5.0 $0.0 0.6% 2015 NetworkNational Source: (1) 26 inIncludes $2.2$2.3$2.4$2.5$2.6$2.8$2.9$3.1$ $2.7$2.7$2.7$2.7$2.8$2.8$2.8$2.8$2.9 $1.0 billions) 201620172018201920202021202220232024 $19.0$19.2$19.5 $17
Slide 27: Historical Financial Overview
Historical Financial SECTION V Overview
Slide 28: Beasley Historical Financial Performance
Beasley Revenue $110.1 30.3%30.6%29.9%29.4% $33.3$33.0$30.5$31.1 $0.2 Poltical ($ $26.6 24.2% $2.8$3.0$2.7 $23.7$24.3 2013A 2.5%2.8%2.1%2.5% Adjusted Source: Note: digital Corporate (1) 28 in Adjusted $2.0 millions) Financials Differences $26.3 revenue, 24.4% 2014A $107.9 Company Revenue Financial S
Slide 29: Beasley Results Commentary
($1.7) $101.9$0.8 $3.2$105.5 $107.9 Revenue (Organic)(Organic)Revenue ($ $26.3 ($1.6) $2.8$0.4$23.7$0.7$24.3 2014A ($3.0) 2015 Commentary (Organic)(Organic)Adj. Tampa Beasley EBITDA changes LTM nled (improved change 29Loss InBeasley’sexistingmarkets,gainsinFortMyers Political In intoBeasley’sexistin
Slide 30: Greater Media Historical Financial Performance
Greater Revenue $145.1 18.2%20.0%20.9% 25.6% $26.4$28.9$30.3$7.9 $37.4 $- Poltical Adjusted ($ $21.4 $23.4$7.9 $29.7 $18.7 14.8% 20.3%$2.5 12.9% 2013A 1.9%1.7%1.4% Pre-Closing Source: Note: (1) 30 $1.2 in Adjusted millions) Financials Greater $3.1 $2.8 16.1%$2.1 2.1% 2014A $144.7 $0.2$0.9SOIPre-Clos
Slide 31: Pro Forma Historical Financial Performance
Historical Revenue $255.2 $145.1 $110.1 $0.2 Poltical Adjusted SOI 2013A Capital ($ $5.5 $2.5 $2.1 2.2% 1.9% $3.0 BBGI Combination Source: Note: (1) Greater (2)inIncludes $3.2 $5.2 $3.1 $2.1 millions) 2.1% 1.9% Financials GM 2014A $107.9 $252.6 $144.7 Expenditures Media Company Revenue Pro EBITDA(2)
Slide 32: Appendix
Appendix
Slide 33: Commentary on Adjusted EBITDA
Commentary Beasley Radio Loss Stock-Based Greater LTM ($ Income Depreciation Other Impairment Gain Severance Out Net Subtotal Less: Pre-Closing Adjusted 1• inTrade Income Income($37.2)($79.4) Interest ofmillions) on (loss) Publishing Communications Income(0.9)(0.6) Income Station Period associated 2
Slide 34: Beasley Market Revenue and Station Detail
Beasley ($ 2015 Market Revenue(AM 75 Atlanta, (47 Philadelphia, 60 Boston, (38 44 Tampa, (24 53 Charlotte, (34 45 Las (15 West (16 30 Ft. (10 10 Wilmington, (4 42 Greenville, (18 28 Augusta, (9 18 Fayetteville, (7 Note: (1) 34 /in 5861372Myers, Based /11)(1 6)(0 19)(2 Vegas, WQYK-FM; WBAV-FM; WIKS-F
Slide 35: Greater Media Market Revenue and Station Detail
Greater ($ 2015 Market Revenue(AM 42 Philadelphia, (24 60 Boston, (38 40 Detroit, (18 53 Charlotte, 5(34 Middlesex, 12 4Monmouth, Morristown, (3 Note: 352/in 2354/1)(1 2)(1 9)(0 000’s) 18)(0 22)(0 19)(1 Market Market Name Media MI MA / 1) 2) NC /NJ 12 NJ 4) 5) 3) 2) 10 NJ Total PA rank /Market 24 St
Slide 36: Beasley Management Team
NamePresident Beasley Tenure Founded Chairman George Founder Recipient Former Trustee Honored Interim Caroline President 2016 Previously market Bruce Served numerous Brian Prior Member Joined Marie Launched Radio 36 recipient E. Tedesco Role G. Network Beasley (Yrs) radio in G. CEO, Chairman of Mana
Slide 37: Non-GAAP Reconciliations
Non-GAAP Reconciliations
Slide 38: Beasley Reported to Presented SOI
Beasley ($ 2013 Reported Trade SOI Source: 38 inAs millions) –Revenue 2014 LTM Presented Company Historical SOI 2015 6/30/2016 (Per (4.3) LTM $33.3 materials. Station 8-K) (3.7) 6/30/2016 Calculation $33.0 $37.9 (3.7) Operating $30.5 $33.2 (4.1)of$31.1 $30.3 Income Trade SOI $31.1 as Expenses Presen
Slide 39: Beasley Adjusted EBITDA Reconciliation
Beasley ($ As 2007 Income Loss Interest Net Impairment Depreciation Employee Radio LMA Beats CBS Tax Other Stock-based Trade Adjusted Source: 39 inReported Add-back Income Gain millions) on Pro –Fees 2008 Settlement Adjustments Income Expenses Revenue Station 2015 Tax Expense Company Extinguishment
Slide 40: Beasley Station Operating Income Reconciliation
Beasley ($ 2007 Station LMA Corporate Radio Employee Depreciation Impairment Total Operating Non-operating Interest Loss Other Income Net Source: 40 inIncome Revenue Gain millions) on –Operating 2008 Fees Operating Income Station 2015 Operating Tax Expense(13.8)(9.0)(10.1)(10.0)(7.4)(6.5)(7.1)(4.4)(
Slide 41: Beasley Net Revenue to Adjusted EBITDA
Beasley ($ 2007 Net Station Trade Corporate Stock-based Other Tax CBS Beats Adjusted Source: 41 inAdd-back Revenue millions) Pro –Settlement 2008 Adjustments Revenue Expenses 2015 Operating Company Historical Forma EBITDA G&A 2009 Compensation Net $133.9 0.8 —(4.2)(3.7)(4.0)(3.7)(4.3)(3.7)(3.7) — Ex
Slide 42: Beasley Net Revenue to SOI Reconciliation
Beasley ($ 2013 Net Trade Stock-based Other Beats CBS Tax Station Corporate SOI Source: 42 inAdd Revenue $33.3 millions) Pro –Settlement 2014 Adjustments Revenue(4.3)(3.7)(3.7) Expenses 2015 Operating Eliminations(1.0)(1.4)(1.4) Company Historical Back Forma(3.9) Wage Underfunded Digital $33.0 2015
Slide 43: Beasley Ratios and Adjusted EBITDA
Beasley Ratios ($ 2007 Trade Stock-based Tax CBS Beats LMA Radio Employee Depreciation Impairment Interest Loss Other Income Net Adjusted Total Source: 43 inincome gain add millions) on proforma –Debt 2008 debt fees(0.2) settlement adjustments(0.3)(0.6)(0.9)(0.2)(0.2)(0.5)(0.1) income revenue expens
Slide 44: Beasley LTM Net Income Reconciliation
Beasley LTM ($ Year Ended 12/31/2015 Station Corporate Radio Depreciation Impairment Total Operating Non-operating Interest Loss Other Income Net Source: 44 inincome revenue Six millions) on Net operating income station Ended operating expense(4.0) before tax Company extinguishment Standalone Months
Slide 45: Beasley Station Margin Reconciliation
Beasley ($ Station Margin Adjusted Source: LTM SOI Corporate Trade Stock-based Tax Depreciation Impairment Interest Loss Other Income Net 45 inAdd-back(1.1) Add-backs Add-back Revenue income to $31.1 millions) on 06/30/2016 Adjustments Adjustments(0.2) Expenses(0.2) Income Expenses(0.0) Revenue(4.1)
Slide 46: Greater Media Historical Reconciliations
Greater ($ Depreciation Impairment Total Operating Non-operating Interest Other Income 2013 Net Station Trade Corporate Adjusted Source: 46 inRevenue income millions) 2014 Operating Income Revenue(6.3)(6.9)(6.0) Expenses Operating Tax Media Expense(2.8)(2.8)(2.8) Before Company EBITDA Expenses: Inco
Slide 47: Greater Media Historical Reconciliations Continued
Greater 2013 Depreciation Impairment Total Operating Non-operating Interest Other Income ($ Net Station Trade Corporate Adjusted Source: 47 inRevenue income millions) 2014 Operating Income Revenue(6.3)(6.9)(6.0) Expenses Operating Tax Media Expense(2.8)(2.8)(2.8) Before Company EBITDA Expenses: Inco
Slide 48: Greater Media SOI Reconciliation
Greater SOI ($ 2013 Adjusted Trade Income Net Source: 48 inincome Revenue $26.4 millions) 2014 Revenue Tax Media Company EBITDA $28.9 2015 $10.2 Expense to2013 $151.4 (6.3) 6.3 SOI $30.3 $13.1 materials. to $18.7 6.9 –$151.6 (6.9) (Benefit) Net 2015 6.0 ($35.8) $21.4 Income (6.0) Trade Historical $1
Slide 49: Greater Media LTM Net Loss Reconciliation
Greater LTM ($ Year Ended 12/31/2015 Station Corporate Employee Depreciation Impairment Total Operating Non-operating Interest Other Loss Income Net Source: 49 inLoss($35.8)($5.0)($34.8)($75.6) Revenue Six millions) Before Net Operating Income Ended Operating Tax Media Expense(2.8) Company Months Re
Slide 50: Greater Media Net Revenue to SOI Reconciliation
Greater ($ 2015 Net Station Trade Pre-closing Adjusted Corporate SOI Source: 50 inRevenue $30.3 margin millions) and LTM Revenue(6.0)(6.9) Expenses Operating Media Company EBITDA LTM G&A Overhead $37.4 6/30/2016 Expense 20.9% $150.9 2015 6/30/2016 6.3 Expenses(6.9)(7.8) Expenses(120.8)(124.1) materi
Slide 51: Greater Media Adjusted EBITDA to Net Loss Reconciliation
Greater ($ LTM Adjusted Pre-closing Trade Employee Depreciation Impairment Interest Other Income Net Source: 51 inLoss($75.6) millions) Adjusted 6/30/2016 Income Revenue Expenses(7.3) Tax Media Expense(2.8) Company EBITDA Termination Expense Loss(89.9) Expense and (Expense), LTM EBITDA 6.9Amortizati
Slide 52: Pro Forma Beasley LTM Adjusted EBITDA Reconciliation
ProinForma ($ Beasley LTM Net Station Trade Corporate Stock-Based Other Pre-closing Tax Post-closing Post Adjusted Source: 52 Add-back Revenue Closing millions) 6/30/2016 Adjustments Revenue(4.1)(6.9)(11.0) Expenses Operating Company Greater EBITDA G&A LTM Expense Expense Corporate Compensation Expe
Slide 53: Pro Forma Beasley LTM SOI Reconciliation
ProinForma ($ Beasley LTM Net Trade Stock-based Tax Station Pre-closing Corporate Other SOI Post-closing Adjusted Margin Source: 53 Add-back Revenue $31.1 millions) 6/30/2016 Adjustments Expenses(0.2)(0.2) Revenue(4.1)(6.9)(11.0) Expenses Operating Eliminations(1.5) 29.3% 26.5% Company Greater SOI W
Slide 54: Pro Forma Beasley Adjusted EBITDA to Net Income Reconciliation
ProinForma ($ Beasley LTM Adjusted Trade Stock-based Tax Pre-closing Employee Depreciation Impairment Interest Loss Other Income Net Source: 54 Add-back(1.1) income millions) on 6/30/2016 Adjustments(0.2) Income Revenue Expenses(4.2)(7.3)(11.5) Tax Expense(4.0) Company Extinguishment Greater EBITDA
Slide 55: Pro Forma Beasley SOI to Net Income Reconciliation
Proin ($ Beasley SOI Corporate Expense Of Net Source: 55 Long-Term Forma Income $31.1 millions) Company Greater Reductions Overhead $37.4 LTM $6.8 Debt Media 6/30/2016 $68.5 ($75.6) materials. (0.6) (6.7) (7.9) Pro ($68.8) (2.8) (7.8) (7.9) SOI Forma (3.3) (14.5) Employee to Net LTM Other Trade Inco
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