Beasley Broadcast Group (NASDAQ:BBGI) reported fourth-quarter results showing a smaller-than-anticipated loss, even as the traditional radio advertising market continues to face pressure.
The announcement sparked a dramatic reaction in the market, with the company’s shares jumping about 111.53% in pre-market trading.
Investors appeared to focus on Beasley’s operational improvements and progress on restructuring its debt rather than the reported loss, which was largely driven by a non-cash impairment charge of $224.8 million related to FCC licenses. Adjusted EBITDA for the quarter came in at $0.8 million, compared with $10.7 million in the same period a year earlier.
For the quarter, the company reported a loss of $105.40 per share, widening sharply from a loss of $1.17 per share in the prior-year period.
Revenue declined 21.1% year over year to $53.1 million, down from $67.3 million. Excluding political advertising and measured on a same-station basis, revenue fell 6.8%, reflecting continued softness in traditional agency-driven advertising markets.
Digital operations, however, showed solid growth. Digital revenue rose 9.7% year over year to $12.6 million and accounted for 23.7% of total net revenue. On a same-station basis, digital revenue jumped 33.6%, while the segment’s operating margin reached 29.4%.
“Against a persistently challenging advertising environment, we made tangible progress reshaping this company for long-term value creation,” said Caroline Beasley, Chief Executive Officer. “Over the past 18 months, we have executed approximately $30 million in annualized cost reductions — permanent, structural changes that reflect a leaner and more focused organization.”
The company recently unveiled a debt exchange plan that is expected to cut its second-lien debt roughly in half and repay about $15 million of first-lien debt. Once the transaction is completed, which is anticipated by the end of April, Beasley expects its total outstanding debt to fall to around $110 million, down from about $220 million.