Beasley Broadcast Group, Inc. · NASDAQ:BBGI
Beasley Broadcast — Investor Presentation (September 2020)
38 slides from Beasley Broadcast's investor presentation, Sep 22, 2020
Slide 1: Beasley Broadcast Group Investor Presentation
NASDAQ: BBGI BEASLEY BROADCAST GROUP TOMORROW’S MEDIA COMPANY TODAY INVESTOR PRESENTATION
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures BEASLEY BROADCAST GROUP 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, E
Slide 3: Today's Presenters
Today’s Presenters Beasley Broadcast Group Caroline Beasley CEO Marie Tedesco CFO Justin Chase CCO Tina Murley SVP, Sales Beasley Broadcast Group // Investor Presentation 3
Slide 4: Table of Contents
Table of Contents I. Beasley Business at a Glance II. Key Credit Highlights III. Financial Overview I. Appendix Beasley Broadcast Group // Investor Presentation 4
Slide 5: I. Beasley Business at a Glance
I. Beasley Business at a Glance
Slide 6: Beasley's Core Business at a Glance
Beasley’s Core Business at a Glance Radio and Digital Media Group in the US serving Consumers Weekly, through its Stations and Markets, with Page Views, Streams, Podcast Downloads, Mobile App. Users, Digital Marketing Services Customers Making Digital Campaigns, and a Portfolio of Esports Teams Key
Slide 7: Beasley Geographic Footprint
Beasley Geographic Footprint 64 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 7
Slide 8: Strong Content and Powerful Local Brands
Strong Content and Powerful Local Brands WMMR - 93.3 FM WMMR is one of the country’s premiere rock radio stations. Having signed on in 1968, ‘MMR is one of America’s longest running, rock formatted station, still playing the best new releases from Green Day, Foo Fighters, Metallica as well as the be
Slide 9: Beasley Serves Some of the Largest Advertisers: National Radio
Beasley Serves Some of the Largest Advertisers in the U.S. | Selected National Radio Advertisers Customer Markets Boston, Detroit, Philadelphia Boston, Charlotte, Detroit, Las Vegas, Philadelphia, Tampa Boston, Charlotte, Detroit, Las Vegas, New Jersey, Philadelphia, Tampa Boston, Charlotte, Philade
Slide 10: Beasley Serves Some of the Largest Advertisers: Local Radio
Beasley Serves Some of the Largest Advertisers in the U.S. | Selected Local Radio Advertisers Customer Markets Boston Augusta, Boston, Charlotte, Detroit, Fayetteville, Fort Myers, Las Vegas, New Jersey, Philadelphia, Tampa, Wilmington Boston, Philadelphia FY19 Total Ad Spend in Beasley Markets ($mm
Slide 11: Digital Media and Marketing Services
Digital Media and Marketing Services Current Solutions Planned Expansion Sell digital to existing radio advertisers High operating leverage Separate Digital Agency selling digital to non-radio advertisers Will leverage current product capabilities Planned expansion of customer reach; no geography li
Slide 12: 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 (Per Kagan, S&P Global Market Intelligence; Local Addressable Digital Media Spending Across Beasley Markets, per Borrell Compass Research; $ in billions) Total Local
Slide 13: Content Leadership in Esports
Content Leadership in Esports Beasley owns Checkpoint XP, a leading Esports syndicated audio show currently featured on 70 radio stations, daily podcasts on Twitch (video game streaming platform) and beyond Beasley acquired the Overwatch League’s Houston Outlaws Team. The expansion into Esports team
Slide 14: II. Key Credit Highlights
SPAS ll. Key Credit Highlights
Slide 15: Beasley Key Credit Highlights
Beasley Key Credit Highlights Stable Industry Dynamics Leading Market Positions; Station Market Shares Outperform Footprints due to Strong Engagement with Brands and Content Diversified Revenue Mix in Core Radio Business Recent Advertiser Demand and Revenue Pacing Reflects Recovery Underway from COV
Slide 16: Stable Industry Dynamics
1 Stable Industry Dynamics 34% of Ad Market in 1999 % of Americans Age 12+ Who Listen to AM/FM and Online Radio Weekly 34% of Ad Market in 2019 Radio reach has been resilient through prior market cycles ï,§ ~90% of radio listeners in US and Canada tune in from their cars and ~50% listen at home ï,§
Slide 17: Stable Industry Dynamics (Cont'd)
1 Stable Industry Dynamics (Cont’d) Radio remains a highly relevant medium for local advertisers Engaged Audience / Greatest Reach Radio is the #1 reach medium in the U.S., reaching ~92% of American adults and 90% of Millennials monthly, 94% of A35-49 and 94% of 50-64 year olds (1) Seamless High-Imp
Slide 18: Radio Share of Ad-supported Audio Time Remains Resilient
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 AM/FM Radio Ad-supported Pandora Podcasts Ad-supported Spotify Ad-supported SiriusXM Share of Ear: Q2 2020 AM/FM Radio Podcasts Ad-supported Pandora Ad-s
Slide 19: Stable Industry Dynamics (Cont'd)
1 Stable Industry Dynamics (Cont’d) Fact 75% of listeners explicitly use broadcast radio for companionship 87% of listeners see “local feel” as radio’s primary advantage and 90% engage with radio stations through various mediums Radio is the #1 live and local media Radio delivers top and bottom line
Slide 20: Leading Market Positions; Significant Total and Local Market Share
2 Leading Market Positions; Significant Total and Local Market Share due to Strong Engagement with Brands and Content Beasley Beasley Percent 2019 Market Beasley Key US Total Local of BBGI Market Ad Stations Stations Beasley Market Market Market Market Key Beasley Stations 2019 Net Revenue (AM / (AM
Slide 21: Highly Diversified Revenue Mix in Core Radio Business
3 Highly Diversified Revenue Mix in Core Radio Business By Station Format By Advertising Category By Market Rock News / Talk / Sports Country Classic Hits Contemporary Hits Adult Contemporary Urban Hispanic Brokered Oldies / Nostalgia Consumer Services Entertainment Retail Auto Telecom/Utility Consu
Slide 22: Advertiser Demand is Recovering After COVID-related Lows in April
4 Advertiser Demand is Recovering After COVID-related lows in April Net Adds ($ in millions)(1) YoY % 7.2% 6.7% (17.4)% (59.8%) (59.4)% (43.6)% (32.3)% (23.9)% Growth Note: Numbers reflect radio and digital but exclude trade (1) Net Adds = monthly ad bookings additions – monthly ad bookings cancella
Slide 23: Recovering Demand is Showing Up in Monthly Results
4 Recovering Demand is Showing Up in Monthly Results
Slide 24: Bookings Pacings Are Off COVID Lows
4 Bookings Pacings Are Off COVID lows 22.8 Pacings as of 9/21/20 ($ in millions) 18.5 17.0 13.0 12.3 10.7 10.5 8.0 Sept Oct Nov Dec 2020 2019 Pacings as of 9/21/20 ($ in millions) September October November December ($ in millions | excludes Digital) $ YoY Δ $ YoY Δ $ YoY Δ $ YoY Δ 2020 Total Pa
Slide 25: Leverage Core Brands and Content to Enter New Businesses: Esports
5 Continually Exploring Ways to Leverage Core Brands and Content to Enter New Businesses Esports Industry is Growing, Increasing Team Valuations ◾ Esports is an established, fast growing sports entertainment industry ◾ Per Newzoo estimates, the global Esports economy will generate revenues of $1.1bn
Slide 26: Disciplined / Experienced Management Team with Strong Family Sponsorship
6 Disciplined / Experienced Management Team with Strong Family Sponsorship and Alignment Since 1961 George G. Beasley Caroline Beasley Bruce G. Beasley Brian E. Beasley Erika Beasley Chairman Chief Executive Officer President Chief Operating Officer VP of Digital Content With BBGI since: 1961 With B
Slide 27: Beasley Key Credit Highlights
Beasley Key Credit Highlights 1 Stable Industry Dynamics 2 Leading Market Positions; Station Market Shares Outperform Footprints due to Strong Engagement with Brands and Content 3 Diversified Revenue Mix in Core Radio Business 4 Recent Advertiser Demand and Revenue Pacing Reflects Recovery Underway
Slide 28: III. Financial Overview
III. Financial Overview
Slide 29: Historical Financials
Historical Financials ($ in millions) Net Revenue Adjusted EBITDA ’17-’19 CAGR: 6.2% ’17-’19 CAGR: 0.8% $ 52 $ 55 $ 53 $ 262 $ 257 $ 232 $ 24 $ 226 2017 2018 2019 LTM 6/30/20 2017 2018 2019 LTM 6/30/20 % Rev. 22.5% 21.3% 20.3% 10.9% Capital Expenditures Free Cash Flow2 ’17-’19 CAGR: 46.6% $ 34 ’17-’
Slide 30: COVID Impact Overview
COVID Impact Overvie Business Impact Following the onset of the COVID pandemic, we acted to protect our employees and encourage safe behavior for our listeners We implemented a work at home initiative for all Beasley staff who could work at home, leaving only the essential employees in the stations
Slide 31: Recent Performance Update
R Recent Performance Update ($ in millions) Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3E 2018 2019 2019 2019 2019 2020 2020 20201 Commercial $ 65.0 $ 49.6 $ 57.4 $ 57.2 $ 59.7 $ 47.4 $ 24.2 Advertising Digital Advertising 4.7 3.5 4.9 5.1 6.8 5.4 4.2 Other 5.9 4.6 3.3 3.9 5.6 4.9 2.0 Net Revenue $ 75.6 $ 57.7 $ 65.7 $ 6
Slide 32: FY20 Financials
FY20 Financials ($ in millions) Key Takeaways July and August reflected growing net revenue base as ad demand recovered following disruption from COVID Planned digital expansion expected to require up to $10mm investment, which was delayed in 2020 due to COVID Q1 cost cuts totaled $3.1mm across Jan
Slide 33: Capital Allocation Priorities, Family Ownership and Balance Sheet
Disciplined / Experienced Management Team With Strong Family Sponsorship and Alignment Since 1961 Capital Allocation Priorities Family Ownership Stake as of August 31, 2020 Due to the current uncertain economic conditions, our Family Member Class A Class B #1 priority is cash preservation George Bea
Slide 34: IV. Appendix
IV. Appendix
Slide 35: Reconciliation of Non-GAAP Adjusted EBITDA
Reconciliation of Non-GAAP Adjusted EBITDA Adjusted EBITDA ($ in millions) FY2017 FY2018 FY2019 LTM 6/30/20 Net Income $ 87.1 $ 6.5 $ 13.4 $(19.4) Interest Expense 18.4 16.0 18.0 16.9 Taxes (48.2) 11.7 6.6 (4.4) Depreciation & Amortization 6.1 6.6 7.3 9.3 EBITDA $ 63.5 $ 40.8 $ 45.4 $ 2.5 Trade (0.0
Slide 36: Reconciliation of Non-GAAP Adjusted EBITDA (Quarterly)
Reconciliation of Non-GAAP Adjusted EBITDA Adjusted EBITDA ($ in millions) Q4’2018 Q1’2019 Q2’2019 Q3’2019 Q4’2019 Q1’2020 Q2’2020 Net Income $ 2.1 $ 1.4 $ 4.3 $ 3.0 $ 4.7 $(8.9) $(18.2) Interest Expense 4.5 4.6 4.5 4.4 4.5 4.2 3.9 Taxes 7.8 0.6 1.9 1.7 2.3 (2.4) (6.0) Depreciation & Amortization 1.
Slide 37: Reconciliation of Non-GAAP Station Operating Income
Reconciliation of Non-GAAP Station Operating Income SOI ($ in millions) Q4’2018 Q1’2019 Q2’2019 Q3’2019 Q4’2019 Q1’2020 Q2’2020 Net Income (Loss) $ 2.1 $ 1.4 $ 4.3 $ 3.0 $ 4.7 $(8.9) $(18.2) Corporate Expenses 4.9 5.0 5.4 5.3 5.5 4.5 3.7 Transaction Expenses - 0.2 0.1 0.1 0.4 - -Depreciation and Amo
Slide 38: Reconciliation of Non-GAAP Free Cash Flow
Reconciliation of Non-GAAP Free Cash Flow Free Cash Flow ($ in millions) FY2017 FY2018 FY2019 LTM 6/30/20 Net income (loss) $ 87.1 $ 6.5 $ 13.4 $(19.4) Station stock-based compensation expense 0.1 0.3 0.4 0.4 Corporate stock-based compensation expense 1.7 1.7 1.8 1.1 Transaction expenses 1.0 0.1 0.8
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