Subsequent to the quarter end, we successfully completed our exchange offer, new notes offering and tender offer, resulting in an immediate debt reduction of $47 million, in a meaningful extension of our maturities to August of 2028.
— Caroline Beasley
03Detailed Report
BBGI
Company BBGI
Period
Q3 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 25, 2026
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Executive Summary
Beasley Broadcast Group reported a third quarter of 2024 (quarter ended September 30) with total net revenue of $58.19 million, representing a year-over-year decline of 3.21% and a sequential decline of 3.72% after adjusting for the Wilmington divestiture and the Outlaws/Guarantee Digital closures. The company highlighted ongoing digital revenue diversification and a shift toward local direct sales, with digital representing 19.4% of Q3 revenue (20.4% YTD). Despite revenue softness, operating profitability improved versus the prior year, aided by cost discipline and the absence of large impairment charges in the current year (Q3 2024 adjusted EBITDA of $5.6 million on a 9-month basis, versus prior-year impairments). GAAP net income remained negative at $3.56 million for the quarter, with EPS of -$2.33, reflecting ongoing leverage and non-operating costs. Management emphasized capital structure optimization as a priority, culminating in the October 8, 2024 exchange/new notes/tender offer that reduced debt by $47 million and extended maturities to August 2028, alongside a 1-for-20 reverse stock split to maintain NASDAQ listing eligibility. Near-term liquidity indicators show cash on hand of $27.8 million, with annualized cost savings targeted at roughly $20 million and 4-5% quarterly capex outlay projected for full-year 2024+. Management guided fourth-quarter revenue to trend up mid-single digits on a same-station basis, supported by political revenue tailwinds and digital/direct growth, while acknowledging advertisers' caution surrounding the election and inventory constraints. Investors should weigh the improvement in capital structure and digital/directed ad dynamics against the still-levered balance sheet, narrow operating margin, and sensitivity to macro ad cycles.
Key Performance Indicators
Revenue
Decreasing
58.19M
QoQ: -3.72% | YoY: -3.21%
Gross Profit
Decreasing
6.46M
11.09% margin
QoQ: -30.24% | YoY: -17.24%
Operating Income
Decreasing
1.24M
QoQ: -76.98% | YoY: -62.60%
Net Income
Increasing
-3.56M
QoQ: -1 189.97% | YoY: 94.73%
EPS
Increasing
-2.33
QoQ: -1 065.00% | YoY: 94.83%
Revenue Trend
Margin Analysis
Financial Highlights
Overview of material performance metrics and trend drivers:
- Revenue: $58.19 million in Q3 2024, down 3.21% YoY and down 3.72% QoQ. On a same-station basis, excluding divestitures and non-core assets, Q3 same-station revenue increased 0.5% (Q3 vs Q3 2023). The company noted offsetting effects from the Wilmington divestiture, Outlaws/Guarantee Digital closures, and a shift toward political, local direct, and digital revenue.
- Gross Profit and Margin: Gross profit $6.46 million; gross margin 11.09% (0.1109). The margin contraction reflects a mix shift away from legacy national/local agency revenues and higher incremental costs associated with the digital transition and post-Guarantee Digital exit.
- Operating Profit and Margin: Operating income $1.24 million; operating margin 2.13%. EBITDA was $2.95 million (adjusted EBITDA $5.6 million for the quarter when adding back onetime severance and noncash stock-based compensation per management commentary), with EBITDAR 5.07% of revenue.
- Net Income and Earnings Per Share: Net income of -$3.56 million; net income margin -6.12%. EPS reported at -$2.33 (diluted -$2.33). The negative bottom line reflects interest expense and other non-operating charges despite mid-single-digit positive quarterly performance on an adjusted basis.
- Cash Flow and liquidity: Operating cash flow -$4.80 million; free cash flow -$5.44 million for the quarter. Cash and cash equivalents totaled $27.80 million at quarter-end, down from $33.29 million in Q2. Quarterly CapEx was $0.64 million; full-year CapEx guidance remains $4.0–$5.0 million.
- Balance Sheet and Leverage: Total debt stood at $303.13 million; net debt $275.33 million; debt-to-capitalization 0.675 and long-term debt-to-capitalization 0.645. Interest coverage stands at 0.203x (low), underscoring leverage sensitivity to operating headwinds. Total stockholders’ equity was $145.83 million with an equity multiplier of 3.92.
- Digital and Direct Sales mix: Digital revenue accounted for 19.4% of Q3 revenue (up from 16.0% in 2022 and 18.6% in Q3 2023). On a nine-month basis, digital accounted for 20.4% of total revenue. Direct local sales represented about 57% of total local revenue, highlighting the company’s strategic pivot toward higher-margin, controllable revenue streams.
- Political advertising: Net political revenue through Q3 totaled approximately $3.7 million year-to-date, up 23% versus the same period in 2020, with $2.7 million generated in Q3. Management indicated another significant political contribution in Q4 (about $8.2 million booked to date in Q4 and $12 million year-to-date).
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
58.19M
-3.21%
-3.72%
Gross Profit
6.46M
-17.24%
-30.24%
Operating Income
1.24M
-62.60%
-76.98%
Net Income
-3.56M
94.73%
-1 189.97%
EPS
-2.33
94.83%
-1 065.00%
Key Financial Ratios
Gross Profit Margin
Weak
11.10%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Weak
2.13%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.06%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.01%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.02%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
1.60
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
High Risk
2.08
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Negative
-1.16x
Negative earnings make P/E ratio not meaningful
Price to Book
Undervalued
0.11x
Trading below book value, potential value opportunity or distressed
Management Insights Available for Members
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