Beasley Broadcast Group, Inc. · NASDAQ:BBGI
Beasley Broadcast — Investor Presentation (March 2018)
22 slides from Beasley Broadcast's investor presentation, Mar 5, 2018
Slide 1: Beasley Broadcast Group Presentation
- BROADCAST GROUP NASDAQ: BBG! PRESENTATION
Slide 2: Non-GAAP measures 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, Adjusted EBITDA, Pro Forma Net Revenue, Free Cash Flow, Station Operating Income and Pro Forma St
Slide 3: Company Highlights
COMPANY HIGHLIGHTS Disciplined and Experienced Management Team 7 Leading Local Broadcast Media Company 1 Attractive Industry and Scaled Digital Platform 6 Diversified Format, Advertisers, and End Markets 3 Sizeable Clusters with Strong In-Market Competitive Positioning 2 Modest Leverage, Track Recor
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 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: Beasley Strategic Objectives
BEASLEY STRATEGIC OBJECTIVES Robust Free Cash Flow Digital Initiatives Modest Leverage Focus on Accretive Consolidation Opportunities Leading Local Audio Focused Media Company
Slide 6: Executive Summary
EXECUTIVE SUMMARY Leading Local Audio-Focused Media Company #4 ranked radio group based on 2016 radio-only revenues with 18.1 million listeners weekly 63 stations across 15 markets. Average 25.2% market share in Top 25 Markets which account for 76% of net revenues Beasley radio clusters ranked top 3
Slide 7: 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 reflects Proforma including the WBZ/WMJX swap.
Slide 8: 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 figures are pro forma as of 12/31/17; Saga and Entercom are pro-forma for respective transactions as of ##/##/##; Emmis is as of 11/30/17; all others ar
Slide 9: 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 10: Overview of Key Markets
OVERVIEW OF KEY MARKETS Source: Miller Kaplan and company materials Note: Statistics are Pro Forma for the net contribution of the WBZ/WMJX exchange (1) Year ended 12/31/2017 Market % of BBGI Net Revenue (1) Market Rank ’17 Market Revenue ($mm) Market Stations (AM / FM) Beasley Stations (AM / FM) Be
Slide 11: Online Presence and Streaming
Online Presence and Streaming Ranked 7th among all radio broadcasters, with 11.6 million streaming sessions per month (three-month average) 68 million page views to 64 station websites in 2017; mobile devices account for ~75% of all website visits We are averaging 2.4 million unique visitors to our
Slide 12: Key Statistics
KEY STATISTICS Market Statistics (BBGI: NASDAQ) ($ 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
Slide 13: Diversified Revenue with Strong Competitive Positions
DIVERSIFIED REVENUE WITH STRONG COMPETITIVE POSITIONS Note: Data based on 12 months 2017 net revenue. (1) Includes Religion/Charities, Barter/Promo/PSA, Agriculture and Traffic Use Only. (2) Includes block programming, network, traffic, talent fee, tower and miscellaneous revenue. By Advertising Cat
Slide 14: Historical Revenue, SOI and EBITDA
HISTORICAL REVENUE, SOI AND EBITDA $1.2 $0.2 $4.9 $0.4 $5.9 $0.4 Political Revenue ($ in millions) Revenue ($ in millions) SOI (1) ($ in millions) 30.3% 30.6% 28.6% 29.3% 22.2% 22.6% EBITDA(1) (Margin %) ($ in millions) 24.0% 20.2% 21.7% 17.9% 18.8% 18.0% Capital Expenditures (% of Revenue) ($ in mi
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 $22.6 m
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-leveragin
Slide 17: Investor Highlights
INVESTOR HIGHLIGHTS Disciplined and Experienced Management Team 7 Leading Local Broadcast Media Company 1 Attractive Industry and Scaled Digital Platform 6 Diversified Format, Advertisers, and End Markets 3 Sizeable Clusters with Strong In-Market Competitive Positioning 2 Modest Leverage, Track Reco
Slide 18: Appendix
- BROADGAST, GROUP NASDAQ: BBG! APPENDIX
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
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) (
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,
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
Beasley Broadcast Group — Investor Presentation (March 2018) on 6ix