10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended September 30, 2018

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File No. 000-29253

BEASLEY BROADCAST GROUP, INC.

(Exact Name of Registrant as Specified in Its Charter)

Delaware	65-0960915
(State of Incorporation)	(I.R.S. Employer Identification Number)

3033 Riviera Drive, Suite 200

Naples, Florida 34103

(Address of Principal Executive Offices and Zip Code)

(239) 263-5000

(Registrant’s Telephone Number, Including Area Code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class A Common Stock, $0.001 par value, 10,821,270 Shares Outstanding as of October 30, 2018

Class B Common Stock, $0.001 par value, 16,662,743 Shares Outstanding as of October 30, 2018

INDEX

		Page No.
	PART I FINANCIAL INFORMATION
Item 1.	Condensed Consolidated Financial Statements.		3
	Notes to Condensed Consolidated Financial Statements.		7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.		15
Item 3.	Quantitative and Qualitative Disclosures About Market Risk.		22
Item 4.	Controls and Procedures.		22
	PART II OTHER INFORMATION
Item 1.	Legal Proceedings.		23
Item 1A.	Risk Factors.		23
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.		23
Item 3.	Defaults Upon Senior Securities.		23
Item 4.	Mine Safety Disclosures.		23
Item 5.	Other Information.		23
Item 6.	Exhibits.		24
SIGNATURES			25

BEASLEY BROADCAST GROUP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

	December 31, 2017			September 30, 2018
ASSETS
Current assets:
Cash and cash equivalents	$	13,922,390		$	9,979,501
Accounts receivable, less allowance for doubtful accounts of $1,623,408 in 2017 and $1,836,570 in 2018		42,669,351			46,784,485
Prepaid expenses		6,001,996			10,059,743
Merger consideration receivable		17,931,331			—
Other current assets		4,135,905			5,507,574
Total current assets		84,660,973			72,331,303
Property and equipment, net		59,318,933			58,514,125
FCC broadcasting licenses		489,186,679			516,585,379
Goodwill		15,275,264			25,377,447
Other intangibles, net		550,058			3,007,925
Other assets		5,726,874			5,957,487
Total assets	$	654,718,781		$	681,773,666
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current installments of long-term debt	$	2,314,020		$	66,331
Accounts payable		7,847,829			14,563,405
Other current liabilities		18,799,195			20,254,443
Total current liabilities		28,961,044			34,884,179
Due to related parties		759,041			686,507
Long-term debt, net of current installments and unamortized debt issuance costs		212,465,882			243,809,065
Deferred tax liabilities		115,282,931			117,502,879
Other long-term liabilities		11,083,683			10,961,413
Total liabilities		368,552,581			407,844,043
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value; 10,000,000 shares authorized; none issued		—			—
Class A common stock, $0.001 par value; 150,000,000 shares authorized; 15,222,738 issued and 12,189,998 outstanding in 2017; 15,200,747 issued and 10,821,270 outstanding in 2018		15,223			15,201
Class B common stock, $0.001 par value; 75,000,000 shares authorized; 16,662,743 issued and outstanding in 2017 and 2018		16,662			16,662
Additional paid-in capital		147,987,332			149,795,872
Treasury stock, Class A common stock; 3,032,740 shares in 2017; 4,379,477 shares in 2018		(16,667,085	)		(30,267,980	)
Retained earnings		154,389,494			154,680,213
Accumulated other comprehensive income (loss)		424,574			(310,345	)
Total stockholders’ equity		286,166,200			273,929,623
Total liabilities and stockholders’ equity	$	654,718,781		$	681,773,666

3

BEASLEY BROADCAST GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

	Three Months Ended September 30,
	2017			2018
Net revenue	$	58,902,050		$	65,147,080
Operating expenses:
Station operating expenses (including stock-based compensation of $69,815 in 2017 and $156,338 in 2018 and excluding depreciation and amortization shown separately below)		42,481,721			50,351,099
Corporate general and administrative expenses (including stock-based compensation of $472,167 in 2017 and $301,116 in 2018)		4,026,521			3,665,865
Transaction expenses		—			110,901
Other operating expenses		290,581			—
Depreciation and amortization		1,453,167			1,693,073
Change in fair value of contingent consideration		(2,524,195	)		—
Total operating expenses		45,727,795			55,820,938
Operating income		13,174,255			9,326,142
Non-operating income (expense):
Interest expense		(4,717,530	)		(4,073,658	)
Loss on modification of long-term debt		—			(281,021	)
Other income (expense), net		46,219			(761,275	)
Income before income taxes		8,502,944			4,210,188
Income tax expense		2,432,740			1,578,412
Net income		6,070,204			2,631,776
Other comprehensive income:
Unrealized losses on securities (net of income tax benefit of $726)		(1,119	)		—
Comprehensive income	$	6,069,085		$	2,631,776
Net income per Class A and B common share:
Basic and diluted	$	0.22		$	0.10
Dividends declared per common share	$	0.045		$	0.05
Weighted average shares outstanding:
Basic		27,705,736			27,351,587
Diluted		27,907,570			27,500,840

4

BEASLEY BROADCAST GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

	Nine Months Ended September 30,
	2017			2018
Net revenue	$	173,656,015		$	181,926,003
Operating expenses:
Station operating expenses (including stock-based compensation of $203,530 in 2017 and $529,802 in 2018 and excluding depreciation and amortization shown separately below)		131,344,313			140,831,239
Corporate general and administrative expenses (including stock-based compensation of $1,310,147 in 2017 and $1,248,828 in 2018)		11,745,100			11,388,637
Transaction expenses		746,070			110,901
Other operating expenses		871,743			—
Depreciation and amortization		4,575,646			4,801,859
Change in fair value of contingent consideration		(7,666,145	)		4,415,925
Gain on dispositions, net		(3,707,993	)		—
Termination of postretirement benefits plan		(1,812,448	)		—
Total operating expenses		136,096,286			161,548,561
Operating income		37,559,729			20,377,442
Non-operating income (expense):
Interest expense		(14,296,913	)		(11,504,473	)
Loss on modification of long-term debt		—			(281,021	)
Other income (expense), net		441,936			(285,063	)
Income before income taxes		23,704,752			8,306,885
Income tax expense		6,242,531			3,917,689
Net income		17,462,221			4,389,196
Other comprehensive income:
Unrealized losses on securities (net of income tax benefit of $16,463)		(25,364	)		—
Unrecognized actuarial losses on postretirement plans (net of income tax benefit of $40,697)		(62,699	)		—
Reclassification of other comprehensive income due to termination of pension plan (net of income tax benefit of $261,358)		—			(731,265	)
Comprehensive income	$	17,374,158		$	3,657,931
Net income per Class A and B common share:
Basic and diluted	$	0.63		$	0.16
Dividends declared per common share	$	0.135		$	0.15
Weighted average shares outstanding:
Basic		27,690,199			27,469,904
Diluted		27,886,984			27,664,999

5

BEASLEY BROADCAST GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	Nine Months Ended September 30,
	2017			2018
Cash flows from operating activities:
Net income	$	17,462,221		$	4,389,196
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation		1,513,677			1,778,630
Provision for bad debts		1,138,019			2,472,298
Depreciation and amortization		4,575,646			4,801,859
Change in fair value of contingent consideration		(7,666,145	)		4,415,925
Gain on dispositions, net		(3,707,993	)		—
Termination of postretirement benefits plan		(1,812,448	)		—
Termination of pension plan		—			(992,623	)
Amortization of loan fees		1,640,424			1,415,549
Loss on modification of long-term debt		—			281,021
Deferred income taxes		5,785,088			2,481,306
Change in operating assets and liabilities:
Accounts receivable		1,697,994			(6,587,432	)
Prepaid expenses		(2,146,627	)		(4,057,747	)
Other assets		921,482			(1,511,179	)
Accounts payable		1,758,187			6,715,576
Other liabilities		(3,453,897	)		212,056
Other operating activities		49,118			19,050
Net cash provided by operating activities		17,754,746			15,833,485
Cash flows from investing activities:
Payments for acquisitions		—			(39,520,000	)
Capital expenditures		(2,962,466	)		(3,346,558	)
Proceeds from dispositions		35,000,000			—
Payments for translator licenses		(1,109,103	)		(52,500	)
Payments for investments		—			(150,000	)
Loan to related party		(150,000	)		—
Net cash provided by (used in) investing activities		30,778,431			(43,069,058	)
Cash flows from financing activities:
Issuance of debt		—			35,000,000
Payments on debt		(49,045,808	)		(7,048,014	)
Payments of debt issuance costs		—			(553,062	)
Dividends paid		(3,851,460	)		(4,020,751	)
Purchase of treasury stock		(506,410	)		(85,489	)
Net cash provided by (used in) financing activities		(53,403,678	)		23,292,684
Net decrease in cash and cash equivalents		(4,870,501	)		(3,942,889	)
Cash and cash equivalents at beginning of period		20,325,415			13,922,390
Cash and cash equivalents at end of period	$	15,454,914		$	9,979,501
Cash paid for interest	$	12,672,589		$	9,993,376
Cash paid for income taxes	$	2,021,125		$	273,200
Supplement disclosure of non-cash investing and financing activities:
Dividends declared but unpaid	$	1,286,010		$	1,367,761
Translator license and equipment received as consideration	$	332,000		$	—
Class A common stock returned to treasury stock	$	—		$	13,515,406
Note receivable and accrued interest converted to investment	$	—		$	187,618
Class A common stock issued for acquisition	$	—		$	29,888

6

BEASLEY BROADCAST GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(1) Interim Financial Statements

The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of Beasley Broadcast Group, Inc. and its subsidiaries (the “Company”) included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. These financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the financial statements reflect all adjustments necessary for a fair statement of the financial position and results of operations for the interim periods presented and all such adjustments are of a normal and recurring nature. The Company’s results are subject to seasonal fluctuations, therefore the results shown on an interim basis are not necessarily indicative of results for the full year.

(2) Recent Accounting Pronouncements

In February 2016, the FASB issued guidance to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. There continues to be a differentiation between finance leases and operating leases, however lease assets and lease liabilities arising from operating leases should now be recognized in the statement of financial position. New disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. In 2018, the FASB issued several updates to address certain practical expedients, codification improvements, and targeted improvements to the original guidance. The new guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is in the final stages of assessment of the new guidance but expects it to result in (i) a significant increase in assets due to the recognition of right-of-use assets on the balance sheet and (ii) a significant increase in liabilities due to the recognition of lease liabilities on the balance sheet, however the amount of these increases will not be quantified until closer to the adoption date. The Company’s initial assessment, which is subject to change, is that the new guidance is not expected to have a significant impact on the statement of comprehensive income.

In May 2014, the FASB issued guidance to clarify the principles for recognizing revenue. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides a comprehensive framework for revenue recognition that supersedes current general revenue guidance and most industry-specific guidance. In addition, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. In 2016, the FASB issued several updates to address implementation issues and to clarify guidance for principal versus agent considerations and identifying performance obligations and licensing. The Company adopted the new guidance on January 1, 2018, using the modified retrospective method, with no impact on its financial statements. The cumulative effect of initially applying the new guidance had no impact on the opening balance of retained earnings as of January 1, 2018. There was no impact on the condensed consolidated balance sheet as of September 30, 2018 or on the condensed consolidated statements of comprehensive income for the three and nine months ended September 30, 2018. The comparative information has not been restated and continues to be reported under the accounting guidance in effect for that period. The Company does not expect the new guidance to have a material impact on its financial statements in future periods.

(3) Acquisitions and Dispositions

Greater Media Merger

On November 1, 2016, (the “Acquisition Date”), the Company completed the acquisition of Greater Media, Inc. (“Greater Media”), pursuant to the merger agreement, dated as of July 19, 2016 by and among the Company, Greater Media, Beasley Media Group 2, Inc., an indirect wholly-owned subsidiary of the Company (“Merger Sub”), and Peter A. Bordes, Jr., as the Stockholders’ Representative (the “Merger Agreement”). On the Acquisition Date, Merger Sub was merged with and into Greater Media, with Greater Media surviving the merger as an indirect wholly-owned subsidiary of the Company (the “Merger”). As a result of the Merger, the Company added 21 radio stations in the Boston, MA, Detroit, MI, Charlotte, NC, Middlesex, NJ, Monmouth, NJ, Morristown, NJ and Philadelphia, PA markets.

7

BEASLEY BROADCAST GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

On the Acquisition Date, in accordance with the Merger Agreement, the Company placed 867,679 shares of the Company’s Class A common stock with a fair value of $4.2 million in escrow. These escrow shares were to be distributed either to the Company for cancellation or to Greater Media based upon a working capital adjustment. As of the Acquisition Date based on the estimated working capital adjustment, the Company estimated that 189,915 shares of Class A common stock would be released to Greater Media and the remainder would be forfeited to the Company for cancellation. The estimated number of shares to be released to Greater Media had a fair value of $0.9 million as of the Acquisition Date and were included in the purchase price. The estimated shares to be forfeited were not indexed to the Company’s stock price and therefore were adjusted to fair value based on the Company’s closing stock price on each reporting date with changes in fair value recorded in earnings. The estimated number of shares to be forfeited had a fair value of $3.3 million as of the Acquisition Date.

Also, in accordance with the Merger Agreement, the purchase price was to be adjusted by certain proceeds from the sale of Greater Media’s towers assets. Based on the proceeds from the tower sale, the former stockholders of Greater Media were required to return a certain number of shares of Class A common stock to the Company for cancellation. The Company accounted for this arrangement as contingent consideration subject to the ultimate sale of the tower assets. As of the Acquisition Date, the Company estimated the sales price of the towers to be $28.0 million which resulted in the expected return of 650,759 shares. As of the Acquisition Date, the estimated number of shares to be returned had a fair value of $3.4 million. On February 27, 2017, the former stockholders of Greater Media entered into an asset purchase agreement to sell the towers for $28.0 million.

On December 29, 2017, the Company entered into a settlement agreement with Greater Media regarding the working capital adjustment and proceeds from the tower sale. As a result, all 867,679 shares held in escrow for the working capital adjustment were forfeited to the Company and recorded in treasury stock on March 15, 2018 and the former stockholders of Greater Media returned 470,480 shares to the Company related to the tower sale proceeds, which were recorded in treasury stock on March 15, 2018. The forfeited shares previously held in escrow for the working capital adjustment had a fair value of $11.6 million and $8.8 million as of December 31, 2017 and March 15, 2018, respectively. The shares returned by the former stockholders of Greater Media related to the tower sale proceeds had a fair value of $6.3 million and $4.8 million as of December 31, 2017 and March 15, 2018, respectively.

The Company engaged a third party to evaluate certain net operating loss carryforwards related to Greater Media, Inc. and several of its subsidiaries to determine the amount of net operating loss carryforwards that may be utilized by the Company in future tax returns. These evaluations had not been finalized as of the Acquisition Date, therefore an estimate of $3.6 million for net operating loss carryforwards was included in the purchase price. The accounting for this item was not finalized before the end of the measurement period, therefore any adjustment was to be recognized in current operations during the period in which the accounting was finalized. The evaluations were finalized during the third quarter of 2018 and an adjustment of $0.2 million was recognized in income tax expense during the three and nine months ended September 30, 2018.

Effective on the Acquisition Date, the Company entered into an agreement with the former CEO of Greater Media to provide consulting services for a period of one year. The costs associated with this agreement are reported in other operating expenses in the accompanying statement of comprehensive income for the three and nine months ended September 30, 2017.

Dispositions

On January 6, 2017, the Company completed the sale of substantially all of the assets used or useful in the operations of WBT-AM, WBT-FM, WFNZ-AM and WLNK-FM in Charlotte, NC to Entercom Communications Corp. for $24.0 million in cash. The Company repaid a portion of the outstanding balance under its credit facility with the sales proceeds. The Company recorded a $0.3 million loss on disposition during the first quarter of 2017.

On May 1, 2017, the Company completed the sale of substantially all of the assets used in the operations of WIKS-FM, WMGV-FM, WNCT-AM, WNCT-FM, WSFL-FM and WXNR-FM in its Greenville-New Bern-Jacksonville, NC market cluster to CMG Coastal Carolina, LLC for $11.0 million in cash and a translator license and equipment with a fair value of $0.3 million. The Company repaid a portion of the outstanding balance under its credit facility with the cash sales proceeds. The Company recorded a $4.0 million gain on disposition during the second quarter of 2017.

Asset Exchange

On December 19, 2017, the Company completed an asset exchange with CBS Radio Stations, Inc., Entercom Boston, LLC, and The Entercom Divestiture Trust under which the Company agreed to exchange all of the assets used or useful in the operations of

8

BEASLEY BROADCAST GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

WMJX-FM in Boston, MA for all of the assets used or useful in the operations of WBZ-FM in Boston, MA. In addition, the Company also paid $12.0 million in cash, which was partially financed with $6.0 million in borrowings from the Company’s credit facility and partially funded with $6.0 million in cash from operations. The asset exchange broadened and diversified the Company’s local radio broadcasting platform and revenue base in the Boston radio market. Further information regarding the asset exchange is included in Note 3 to the consolidated financial statements contained in Item 8 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 filed on February 20, 2018.

Acquisition

On September 27, 2018, the Company completed the acquisition of WXTU-FM in Philadelphia from Entercom Communications Corp. for $38.0 million in cash. The purchase price was partially financed with $35.0 million in borrowings from the Company’s credit facility and partially funded with $3.0 million of cash from operations. On July 19, 2018, the Company also entered into a local marketing agreement (“LMA”) with Entercom Communications Corp. and began operating WXTU-FM on July 23, 2018. During the term of the LMA, the Company included net revenues and station operating expenses, including the associated LMA fee from operating WXTU-FM, in its consolidated financial statements. The LMA ended on September 27, 2018. The acquisition broadened and diversified the Company’s local radio broadcasting platform and revenue base in the Philadelphia radio market.

The acquisition was accounted for as a business combination. The Company incurred transaction costs of $0.1 million.

The purchase price allocation is summarized as follows:

Property and equipment	$	357,734
FCC broadcasting license		27,346,200
Goodwill		10,102,183
Other intangibles		193,883
	$	38,000,000

The fair value of the property and equipment was estimated using cost and market approaches. Property and equipment for which there are comparable current replacements available were valued on the basis of a cost approach. The cost approach allowed for factors such as physical depreciation as well as functional and economic obsolescence. Property and equipment for which an active used market exists, including property for which there is no longer comparable current replacements available but for which there remains an active used market were valued using a market approach. The market approach is based on the selling prices of similar assets on the used market. As few sales reflect identical assets, the selling prices of similar assets was utilized with adjustments made for any differences such as age, condition, and options. If different assumptions or estimates had been used in the cost or market approaches, the fair value of the property and equipment could have been materially different.

The fair value of the Federal Communications Commission (“FCC”) broadcasting licenses were estimated using an income approach. The income approach measures the expected economic benefits the licenses provide and discounts these future benefits using discounted cash flow analyses. The discounted cash flow analyses assume that each license is held by a hypothetical start-up radio station, and the value yielded by the discounted cash flow analyses represents the portion of the radio station’s value attributable solely to its license. The discounted cash flow model incorporates variables such as radio market revenues; the projected growth rate for radio market revenues; projected radio market revenue share; projected radio station operating income margins; and a discount rate appropriate for the radio broadcasting industry. The variables used in the analyses reflect historical radio station and market growth trends, as well as anticipated radio station performance, industry standards, and market conditions. The discounted cash flow projection period of ten years was determined to be an appropriate time horizon for the analyses. Stable market revenue share and operating margins are expected at the end of year three (maturity). If different assumptions or estimates had been used in the income approach, the fair value of the FCC broadcasting licenses could have been materially different. If actual results are different from assumptions or estimates used in the discounted cash flow analyses, we may incur impairment losses in the future and they may be material.

The key assumptions used in the valuation of the FCC broadcasting licenses are as follows:

Revenue growth rates	0.6% - 1.3%
Market revenue shares at maturity	5.4%
Operating income margins at maturity	30.5%
Discount rate	9.0%

9

BEASLEY BROADCAST GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Goodwill was equal to the amount the purchase price exceeded the values allocated to the tangible and identifiable intangible assets. The $10.1 million allocated to goodwill is deductible for tax purposes.

The following unaudited pro forma information for the three and nine months ended September 30, 2017 and 2018 assumes that the acquisitions and dispositions had occurred on January 1, 2017. This unaudited pro forma information has been prepared based on estimates and assumptions, which management believes are reasonable, and are not necessarily indicative of what would have occurred had the acquisition been completed on January 1, 2017 or of results that may occur in the future.

	Three months ended September 30,				Nine months ended September 30,
	2017		2018		2017		2018
Net revenue	$	67,354,259	$	65,631,709	$	193,482,282	$	187,926,182
Operating income		13,816,564		10,555,269		32,834,524		28,781,994
Net income		5,097,542		3,274,153		10,200,662		10,086,885
Basic net income per share		0.18		0.12		0.37		0.37
Diluted net income per share		0.18		0.12		0.37		0.36

(4) Long-Term Debt

Long-term debt is comprised of the following:

	December 31, 2017			September 30, 2018
Term loan	$	225,000,000		$	253,000,000
Revolving credit facility		—			—
Capital lease obligations		630,874			582,859
		225,630,874			253,582,859
Less unamortized debt issuance costs		(10,850,972	)		(9,707,463	)
		214,779,902			243,875,396
Less current installments		(2,314,020	)		(66,331	)
	$	212,465,882		$	243,809,065

As of September 30, 2018, the credit facility consisted of a term loan with a remaining balance of $253.0 million and a revolving credit facility with a maximum commitment of $20.0 million. As of September 30, 2018, the Company had $20.0 million in available commitments under its revolving credit facility. At the Company’s option, the credit facility may bear interest at either (i) the London Interbank Offered Rate (“LIBOR”) plus a margin of 4.0% or (ii) the base rate plus a margin of 3.0%. The LIBOR interest rate for the term loan is subject to a 1% floor. Interest payments are, for loans based on LIBOR, due at the end of each applicable interest period unless the interest period is longer than three months, in which case they are due at the end of each three month period. Interest payments for loans based on the base rate are due quarterly. The revolving credit facility carried interest, based on LIBOR, at 6.2% as of September 30, 2018 and matures on November 17, 2022. The term loan carried interest, based on LIBOR, at 6.2% as of September 30, 2018 and matures on November 1, 2023.

On September 27, 2018, the Company borrowed an additional $35.0 million under its current term loan. The proceeds were used for the acquisition of WXTU-FM in Philadelphia. In connection with the additional borrowings, the Company recorded a loss on modification of long-term debt of $0.3 million during the third quarter of 2018.

As of December 31, 2017, the credit facility consisted of a term loan with a remaining balance of $225.0 million and a revolving credit facility with a maximum commitment of $20.0 million. The revolving credit facility and term loan carried interest, based on LIBOR, at 5.5% as of December 31, 2017.

Commencing with the year ending December 31, 2018, the credit agreement requires mandatory prepayments equal to 50% of Excess Cash Flow (as defined in the credit agreement) when the Company’s Total Leverage Ratio (as defined in the credit agreement) is greater than 3.5x; mandatory prepayments equal to 25% of Excess Cash Flow when the Total Leverage Ratio is less than or equal to 3.5x but greater than 3.0x; and no mandatory prepayments when the Total Leverage Ratio is less than or equal to 3.0x. Mandatory prepayments of Excess Cash Flow are due 95 days after year end. The credit agreement also requires mandatory prepayments for defined amounts from net proceeds of asset sales, net insurance proceeds, and net proceeds of debt issuances.

10

BEASLEY BROADCAST GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The credit agreement requires the Company to comply with certain financial covenants which are defined in the credit agreement. These financial covenants include a First Lien Leverage Ratio that will be tested at the end of each quarter. For the period from September 30, 2018 through December 31, 2018, the maximum First Lien Leverage Ratio is 6.0x. For the period from March 31, 2019 through December 31, 2019, the maximum First Lien Leverage Ratio is 5.75x. The maximum First Lien Leverage Ratio is 5.25x for March 31, 2020 and thereafter.

The credit facility is secured by substantially all assets of the Company and its subsidiaries and is guaranteed jointly and severally by the Company and its subsidiaries. If the Company defaults under the terms of the credit agreement, the Company and its subsidiaries may be required to perform under their guarantees. As of September 30, 2018, the maximum amount of undiscounted payments the Company and its applicable subsidiaries would have been required to make in the event of default was $253.0 million. The guarantees for the credit facility expire on November 17, 2022 for the revolving credit facility and on November 1, 2023 for the term loan.

Failure to comply with financial covenants, scheduled interest payments, scheduled principal repayments, or any other terms of the credit agreement could result in the acceleration of the maturity of the Company’s outstanding debt, which could have a material adverse effect on the Company’s business or results of operations. As of September 30, 2018, the Company was in compliance with all applicable financial covenants under the credit agreement.

The aggregate scheduled principal repayments of the credit facility and capital lease obligations for the remainder of 2018, the next four years and thereafter are as follows:

2018	$	16,005
2019		67,101
2020		633,116
2021		2,684,940
2022		2,614,572
Thereafter		247,567,125
Total	$	253,582,859

(5) Stockholders’ Equity

The changes in stockholders’ equity for the three and nine months ended September 30, 2017 and 2018 are as follows:

	Three months ended September 30,						Nine months ended September 30,
	2017			2018			2017			2018
Beginning balance	$	211,719,400		$	272,195,359		$	202,491,623		$	286,166,200
Issuance of common stock		—			29,888			—			29,888
Stock-based compensation		541,982			457,454			1,513,677			1,778,630
Purchase of treasury stock		(28,408	)		(17,093	)		(506,410	)		(13,600,895	)
Net income		6,070,204			2,631,776			17,462,221			4,389,196
Cash dividends		(1,286,010	)		(1,367,761	)		(3,857,060	)		(4,102,131	)
Other comprehensive loss		(1,180	)		—			(88,063	)		(731,265	)
Ending balance	$	217,015,988		$	273,929,623		$	217,015,988		$	273,929,623

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BEASLEY BROADCAST GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(6) Revenue

Revenue is comprised of the following:

	Three months ended September 30,				Nine months ended September 30,
	2017		2018		2017		2018
Commercial advertising	$	52,162,713	$	56,644,127	$	154,527,033	$	157,761,002
Digital advertising		3,311,548		3,496,136		9,711,397		10,826,473
Other		3,427,789		5,006,817		9,417,585		13,338,528
	$	58,902,050	$	65,147,080	$	173,656,015	$	181,926,003

The Company recognizes revenue when it satisfies a performance obligation under a contract with an advertiser. The transaction price is allocated to performance obligations based on executed contracts which represent relative standalone selling prices. Payment is generally due within 30 days although certain advertisers are required to pay in advance. Revenues are reported at the amount the Company expects to be entitled to receive under the contract. The Company has elected to use the practical expedient to expense sales commissions as incurred. Payments received from advertisers before the performance obligation is satisfied are recorded as deferred revenue in the balance sheet. Substantially all deferred revenue is recognized within twelve months of the payment date.

	December 31, 2017		September 30, 2018
Deferred revenue	$	1,893,508	$	2,718,519

	Three months ended September 30,				Nine months ended September 30,
	2017		2018		2017		2018
Losses on receivables	$	354,814	$	1,845,022	$	1,193,593	$	2,259,136

Commercial advertising includes revenue from the sale or trade of aired commercial spots to advertisers directly or through national, regional or local advertising agencies. Each commercial spot is considered a performance obligation. Revenue is recognized when the commercial spots have aired. Trade sales are recorded at the estimated fair value of the goods or services received. If commercial spots are aired before the goods or services are received then a trade sales receivable is recorded. If goods or services are received before the commercial spots are aired then a trade sales payable is recorded.

	December 31, 2017		September 30, 2018
Trade sales receivable	$	1,550,172	$	1,563,809
Trade sales payable		1,276,170		1,315,712

	Three months ended September 30,				Nine months ended September 30,
	2017		2018		2017		2018
Trade sales revenue	$	2,144,090	$	2,790,888	$	6,916,643	$	6,409,976

Digital advertising includes revenue from the sale of streamed commercial spots, station-owned assets and third party products. Each streamed commercial spot, station-owned asset and third party product is considered a performance obligation. Revenue is recognized when the commercial spots have streamed. Station-owned assets are generally scheduled over a period of time and revenue is recognized over time as the digital items are used for advertising content except for streamed commercial spots. Third-party products are generally scheduled over a period of time with an impression target each month. Revenue from the sale of third-party products is recognized over time as the digital items are used for advertising content and impression targets are met each month.

Other revenue includes revenue from concerts, promotional events, talent fees and other miscellaneous items. Revenue is generally recognized when the event is completed, as the promotional events are completed, or as the talent services are completed.

(7) Employee Benefit Plans

Effective May 31, 2017, the Company terminated the Greater Media, Inc. Pension Plan (the “Pension Plan”). In December 2017, lump sum payments were made from the trust to participants who elected to receive a lump sum payment. In January 2018, a payment of $52.0 million was made from the trust to an insurance company to purchase annuities for the remaining participants who elected to receive annuity payments. As a result of the termination, the Company recognized a $1.0 million gain that was recorded in corporate general and administrative expenses for the nine months ended September 30, 2018. This completed the recognition in earnings of the amount related to the Pension Plan that remained in accumulated other comprehensive income as of December 31, 2017.

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BEASLEY BROADCAST GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(8) Stock-Based Compensation

The Beasley Broadcast Group, Inc. 2007 Equity Incentive Award Plan (the “2007 Plan”) permits the Company to issue up to 7.5 million shares of Class A common stock. The 2007 Plan allows for eligible employees, directors and certain consultants of the Company to receive restricted stock units, shares of restricted stock, stock options or other stock-based awards. The restricted stock units and restricted stock awards that have been granted under the 2007 Plan generally vest over one to five years of service.

A summary of restricted stock unit activity is presented below:

	Restricted Stock Units			Weighted- Average Grant-Date Fair Value
Unvested as of July 1, 2018		499,335		$	10.57
Granted		48,444			6.66
Vested		1,143			12.27
Forfeited		(4,500	)		10.65
Unvested as of September 30, 2018		544,422		$	9.57

A summary of restricted stock activity is presented below:

	Shares			Weighted- Average Grant-Date Fair Value
Unvested as of July 1, 2018		156,786		$	6.54
Granted		—			—
Vested		(7,500	)		4.90
Forfeited		(24,286	)		5.51
Unvested as of September 30, 2018		125,000		$	6.85

As of September 30, 2018, there was $4.8 million of total unrecognized compensation cost for restricted stock units and shares of restricted stock granted under the 2007 Plan. That cost is expected to be recognized over a weighted-average period of 2.1 years.

(9) Income Taxes

The Company’s effective tax rate was approximately 29% and 37% for the three months ended September 30, 2017 and 2018, respectively, and approximately 26% and 47% for the nine months ended September 30, 2017 and 2018, respectively. These rates differ from the federal statutory rate of 35% and 21% in 2017 and 2018, respectively, due to the effect of state income taxes and certain expenses that are not deductible for tax purposes. The effective tax rate for the nine months ended September 30, 2018 also reflects a $1.2 million increase due to the change in fair value of contingent consideration during that time period. The effective tax rate for the three and nine months ended September 30, 2017 also reflects a $1.0 million decrease and a $3.0 million decrease due to the change in fair value of contingent consideration during the three and nine months ended September 30, 2017, respectively.

(10) Related Party Transactions

On June 18, 2018, the note receivable and accrued interest due from LN2 DB, LLC totaling $187,618 was converted to additional equity in LN2 DB, LLC and the Company contributed an additional $150,000 which maintained its ownership interest at approximately 20% of the outstanding units. The Company may be called upon to make additional pro rata cash contributions to LN2 DB, LLC in the future. LN2 DB, LLC is managed by Fowler Radio Group, LLC which is partially-owned by Mark S. Fowler, an independent director of the Company. In June 2018, George G. Beasley, Caroline Beasley, Bruce Beasley, Brian Beasley and other family members also invested in LN2 DB, LLC under a recapitalization plan.

On May 3, 2018, the Company entered into an agreement to lease a radio tower for one radio station in Tampa, FL from Beasley Family Towers, LLC, which is partially held by a trust for the benefit of Caroline Beasley, Bruce G. Beasley, Brian E. Beasley and

13

BEASLEY BROADCAST GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

other family members of George G. Beasley and partially owned directly by Caroline Beasley, Bruce G. Beasley, Brian E. Beasley and other family members. The lease agreement requires monthly payments of $11,000 and expires on December 31, 2027 with an option to renew for four periods of five years each.

(11) Financial Instruments

The carrying amount of the Company’s financial instruments including cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the short term nature of these financial instruments.

The carrying amount of the Company’s long-term debt, including the term loan, the revolving credit facility, capital lease obligations and current installments, as of September 30, 2018 was $253.6 million which approximated fair value based on current market interest rates. The carrying amount of the Company’s term loan as of December 31, 2017 was $225.6 million which approximated fair value based on current market interest rates.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

General

We are a radio broadcasting company whose primary business is operating radio stations throughout the United States. We own and operate 64 radio stations in the following radio markets: Atlanta, GA, Augusta, GA, Boston, MA, Charlotte, NC, Detroit, MI, Fayetteville, NC, Fort Myers-Naples, FL, Las Vegas, NV, Middlesex, NJ, Monmouth, NJ, Morristown, NJ, Philadelphia, PA, Tampa-Saint Petersburg, FL, West Palm Beach-Boca Raton, FL, and Wilmington, DE. We refer to each group of radio stations in each radio market as a market cluster.

Recent Developments

On September 27, 2018, we completed the acquisition of WXTU-FM in Philadelphia from Entercom Communications Corp. for $38.0 million in cash. The purchase price was partially financed with $35.0 million in borrowings from our credit facility and partially funded with $3.0 million of cash from operations. On July 19, 2018, we also entered into a local marketing agreement (“LMA”) with Entercom Communications Corp. and began operating WXTU-FM on July 23, 2018. During the term of the LMA, we included net revenues and station operating expenses, including the associated LMA fee from operating WXTU-FM, in our consolidated financial statements. The LMA ended on September 27, 2018.

On September 27, 2018, we borrowed an additional $35.0 million under our current term loan. The proceeds were used for the acquisition of WXTU-FM in Philadelphia. In connection with the additional borrowings, we recorded a loss on modification of long-term debt of $0.3 million during the third quarter of 2018.

Cautionary Note Regarding Forward-Looking Statements

This report contains “forward-looking statements” about the Company within the meaning of the Private Securities Litigation Reform Act of 1995, which relate to future, not past, events. All statements other than statements of historical fact included in this document are forward-looking statements. These forward-looking statements are based on the current beliefs and expectations of the Company’s management and are subject to known and unknown risks and uncertainties. Forward-looking statements, which address the Company’s expected business and financial performance and financial condition, among other matters, contain words such as: “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” “may,” “will,” “plans,” “projects,” “could,” “should,” “would,” “seek,” “forecast,” or other similar expressions.

Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The Company undertakes no obligation to update or revise any forward-looking statements.

Forward-looking statements involve a number of risks and uncertainties, and actual results or events may differ materially from those projected or implied in those statements. Factors that could cause actual results or events to differ materially from these forward-looking statements include, but are not limited to:

• external economic forces that could have a material adverse impact on the Company’s advertising revenues and results of operations;

• the ability of the Company’s radio stations to compete effectively in their respective markets for advertising revenues;

• the ability of the Company to respond to changes in technology, standards and services that affect the radio industry;

• audience acceptance of the Company’s content, particularly its radio programs;

• the Company’s substantial debt levels and the potential effect of restrictive debt covenants on the Company’s operational flexibility and ability to pay dividends;

15

• the Company’s dependence on federally issued licenses subject to extensive federal regulation;

• the risk that the Company’s FCC broadcasting licenses and/or goodwill could become impaired;

• the failure or destruction of the internet, satellite systems and transmitter facilities that the Company depends upon to distribute its programming;

• disruptions or security breaches of the Company’s information technology infrastructure;

• actions by the FCC or new legislation affecting the radio industry;

• the loss of key personnel;

• the fact that the Company is controlled by the Beasley family, which creates difficulties for any attempt to gain control of the Company;

• our ability to integrate acquired businesses and achieve fully the strategic and financial objectives related thereto and their impact on our financial condition and results of operations;

• other economic, business, competitive, and regulatory factors affecting the businesses of the Company, including those set forth in the Company’s filings with the SEC.

Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. We do not intend, and undertake no obligation, to update any forward-looking statement.

Financial Statement Presentation

The following discussion provides a brief description of certain key items that appear in our financial statements and general factors that impact these items.

Net Revenue. Our net revenue is primarily derived from the sale of commercial spots to advertisers directly or through national, regional or local advertising agencies. Revenues are reported at the amount we expect to be entitled to receive under the contract. Local revenue generally consists of commercial advertising sales, digital advertising sales and other sales to advertisers in a radio station’s local market either directly to the advertiser or through the advertiser’s agency. National revenue generally consists of commercial advertising sales through advertiser agencies. National advertiser agencies generally purchase advertising for multiple markets. National sales are generally facilitated by our national representation firm, which serves as our agent in these transactions.

Our net revenue is generally determined by the advertising rates that we are able to charge and the number of advertisements that we can broadcast without jeopardizing listener levels. Advertising rates are primarily based on the following factors:

• a radio station’s audience share in the demographic groups targeted by advertisers as measured principally by periodic reports issued by Nielson Audio;

• the number of radio stations, as well as other forms of media, in the market competing for the attention of the same demographic groups;

• the supply of, and demand for, radio advertising time; and

• the size of the market.

Our net revenue is affected by general economic conditions, competition and our ability to improve operations at our market clusters. Seasonal revenue fluctuations are also common in the radio broadcasting industry and are primarily due to variations in advertising expenditures by local and national advertisers. Our revenues are typically lowest in the first calendar quarter of the year.

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We use trade sales agreements to reduce cash paid for operating costs and expenses by exchanging advertising airtime for goods or services; however, we endeavor to minimize trade revenue in order to maximize cash revenue from our available airtime.

We also continue to invest in digital support services to develop and promote our radio station websites, applications, and other distribution platforms. We derive revenue from our websites through the sale of advertiser promotions and advertising on our websites and the sale of advertising airtime during audio streaming of our radio stations over the internet. We also generate revenue from selling other digital products.

Operating Expenses. Our operating expenses consist primarily of (i) programming, engineering, sales, advertising and promotion, and general and administrative expenses incurred at our radio stations, (ii) general and administrative expenses, including compensation and other expenses, incurred at our corporate offices, and (iii) depreciation and amortization. We strive to control our operating expenses by centralizing certain functions at our corporate offices and consolidating certain functions in each of our market clusters.

Critical Accounting Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires us to make estimates and assumptions that affect reported amounts and related disclosures. We consider an accounting estimate to be critical if:

• it requires assumptions to be made that were uncertain at the time the estimate was made; and

• changes in the estimate or different estimates that could have been selected could have a material impact on our results of operations or financial condition.

Our critical accounting estimates are described in Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2017. There have been no material changes to our critical accounting estimates during the third quarter of 2018.

Recent Accounting Pronouncements

Recent accounting pronouncements are described in Note 2 to the accompanying financial statements.

Three Months Ended September 30, 2018 Compared to the Three Months Ended September 30, 2017

The following summary table presents a comparison of our results of operations for the three months ended September 30, 2017 and 2018 with respect to certain of our key financial measures. These changes illustrated in the table are discussed in greater detail below. This section should be read in conjunction with the financial statements and notes to financial statements included in Item 1 of this report.

	Three Months ended September 30,					Change
	2017		2018			$			%
Net revenue	$	58,902,050	$	65,147,080		$	6,245,030			10.6	%
Station operating expenses		42,481,721		50,351,099			7,869,378			18.5
Corporate general and administrative expenses		4,026,521		3,665,865			(360,656	)		(9.0	)
Change in fair value of contingent consideration		2,524,195		—			(2,524,195	)		(100.0	)
Interest expense		4,717,530		4,073,658			(643,872	)		(13.6	)
Other income (expense), net		46,219		(761,275	)		(807,494	)		(1747.1	)
Income tax expense		2,432,740		1,578,412			(854,328	)		(35.1	)
Net income		6,070,204		2,631,776			(3,438,428	)		(56.6	)

Net Revenue. Net revenue increased $6.2 million during the three months ended September 30, 2018 as compared to the three months ended September 30, 2017. Significant factors affecting net revenue included $5.0 million in additional advertising revenue in Boston primarily from the asset exchange completed on December 19, 2017, $2.0 million in additional advertising revenue in Philadelphia primarily from the local marketing agreement for WXTU-FM in Philadelphia, and a $0.6 million increase in advertising revenue from our Tampa-Saint Petersburg market cluster, partially offset by a $0.7 million decrease in advertising revenue from our Detroit market cluster, and a $0.6 million decrease in advertising revenue from our Charlotte market cluster. Net revenue for the three months ended September 30, 2018 was comparable to net revenue for the same period in 2017 at our remaining market clusters.

17

Station Operating Expenses. Station operating expenses increased $7.9 million during the three months ended September 30, 2018 as compared to the same period in 2017. Significant factors affecting station operating expenses for the three months ended September 30, 2018 included $4.8 million in additional expenses primarily from the asset exchange in Boston, $1.5 million in additional expenses primarily from the local marketing agreement for WXTU-FM in Philadelphia, and a $1.0 million increase in station operating expenses at our Tampa-Saint Petersburg market cluster. Station operating expenses for the three months ended September 30, 2018 also included $1.7 million of additional bad debt expense due to financial issues at United States Traffic Network. Station operating expenses for the three months ended September 30, 2018 were comparable to station operating expenses for the same period in 2017 at our remaining market clusters.

Corporate General and Administrative Expenses. Corporate general and administrative expenses decreased $0.4 million during the three months ended September 30, 2018 as compared to the three months ended September 30, 2017 primarily due to a $0.2 million decrease in compensation expense, and a $0.2 million decrease in contract services.

Change in Fair Value of Contingent Consideration. In connection with the acquisition of Greater Media, a certain number of shares of our Class A common stock placed in escrow on the acquisition date were forfeited based on a working capital adjustment. The fair value of the estimated number of shares to be forfeited increased $1.3 million due to a change in our stock price over the three months ended September 30, 2017. In addition, a number of shares of our Class A common stock were returned to us by the former stockholders of Greater Media based on certain proceeds from the sale of Greater Media’s tower assets. The fair value of the estimated number of shares to be returned increased $1.2 million due to a change in our stock price over the three months ended September 30, 2017.

Interest Expense. Interest expense decreased $0.6 million during the three months ended September 30, 2018 as compared to the three months ended September 30, 2017. The primary factors affecting interest expense was the decrease in long-term debt outstanding and the applicable interest rate.

Other Income (Expense), Net. Other income (expense), net decreased $0.8 million during the three months ended September 30, 2018 as compared to the three months ended September 30, 2017 primarily due to expenses of $0.8 million related to a shelf offering.

Income Tax Expense. Our effective tax rate was approximately 29% and 37% for the three months ended September 30, 2017 and 2018, respectively. These rates differ from the federal statutory rate of 35% and 21% in 2017 and 2018, respectively, due to the effect of state income taxes and certain expenses that are not deductible for tax purposes. The effective tax rate for the three months ended September 30, 2017 also reflects a $1.0 million decrease due to the change in fair value of contingent consideration during that time period.

Net Income. Net income during the three months ended September 30, 2018 was $2.6 million, a decrease of $3.4 million compared to net income of $6.1 million during the three months ended September 30, 2017 as a result of the factors described above.

Nine Months Ended September 30, 2018 Compared to the Nine Months Ended September 30, 2017

The following summary table presents a comparison of our results of operations for the nine months ended September 30, 2017 and 2018 with respect to certain of our key financial measures. These changes illustrated in the table are discussed in greater detail below. This section should be read in conjunction with the financial statements and notes to financial statements included in Item 1 of this report.

	Nine Months ended September 30,					Change
	2017		2018			$			%
Net revenue	$	173,656,015	$	181,926,003		$	8,269,988			4.8	%
Station operating expenses		131,344,313		140,831,239			9,486,926			7.2
Corporate general and administrative expenses		11,745,100		11,388,637			(356,463	)		(3.0	)
Gain on dispositions, net		3,707,993		—			(3,707,993	)		(100.0	)
Change in fair value of contingent consideration		7,666,145		(4,415,925	)		(12,082,070	)		(157.6	)
Termination of postretirement benefits plan		1,812,448		—			(1,812,448	)		(100.0	)
Interest expense		14,296,913		11,504,473			(2,792,440	)		(19.5	)
Other income (expense), net		441,936		(285,063	)		(726,999	)		(164.5	)
Income tax expense		6,242,531		3,917,689			(2,324,842	)		(37.2	)
Net income		17,462,221		4,389,196			(13,073,025	)		(74.9	)

18

Net Revenue. Net revenue increased $8.3 million during the nine months ended September 30, 2018 as compared to the nine months ended September 30, 2017. Significant factors affecting net revenue included $11.8 million in additional advertising revenue in Boston primarily from the asset exchange completed on December 19, 2017 and $2.0 million in additional advertising revenue in Philadelphia primarily from the local marketing agreement for WXTU-FM in Philadelphia, partially offset by a $2.0 million decrease due to the disposition of our Greenville-New Bern-Jacksonville market cluster on May 1, 2017, a $1.2 million decrease in advertising revenue from our Charlotte market cluster, a $1.1 million decrease in advertising revenue from our Detroit market cluster, and a $0.9 million decrease in advertising revenue from our New Jersey market cluster. Net revenue for the nine months ended September 30, 2018 was comparable to net revenue for the same period in 2017 at our remaining market clusters.

Station Operating Expenses. Station operating expenses increased $9.5 million during the nine months ended September 30, 2018 as compared to the nine months ended September 30, 2017. Significant factors affecting station operating expenses included $11.1 million in additional expenses primarily from the asset exchange in Boston and $1.3 million in additional expenses primarily from the local marketing agreement for WXTU-FM in Philadelphia, partially offset by a $1.8 million decrease in station operating expenses due to the disposition of our Greenville-New Bern-Jacksonville market cluster and a $0.8 million decrease in station operating expenses at our Detroit market cluster. Station operating expenses for the nine months ended September 30, 2018 also included $1.7 million of additional bad debt expense due to financial issues at United States Traffic Network. Station operating expenses for the nine months ended September 30, 2018 were comparable to station operating expenses for the same period in 2017 at our remaining market clusters.

Corporate General and Administrative Expenses. Corporate general and administrative expenses decreased $0.4 million during the nine months ended September 30, 2018 as compared to the nine months ended September 30, 2017. The primary factors affecting corporate general and administrative expenses included a $0.6 million increase in cash compensation expense, which was primarily due to an increase in the number of employees at our corporate offices, offset by a $1.0 million gain as a result of the Greater Media pension plan termination.

Gain on Dispositions, Net. On May 1, 2017, we completed the disposition of our Greenville-New Bern-Jacksonville market cluster. As a result of the disposition we recorded a gain of $4.0 million during the second quarter of 2017. On January 6, 2017, we completed the sale of substantially all of the assets used or useful in the operations of WBT-AM, WBT-FM, WFNZ-AM and WLNK-FM in Charlotte, NC. As a result of the disposition we recorded a $0.3 million loss during the first quarter of 2017.

Change in Fair Value of Contingent Consideration. In connection with the acquisition of Greater Media, a certain number of shares of our Class A common stock placed in escrow on the acquisition date were forfeited based on a working capital adjustment. The fair value of the forfeited shares decreased $2.9 million due to a change in our stock price from January 1, 2018 to March 15, 2018, the date the forfeited shares were recorded in treasury stock. The fair value of the estimated number of shares to be forfeited increased $3.8 million over the nine months ended September 30, 2017. In addition, a number of shares of our Class A common stock were returned to us by the former stockholders of Greater Media based on certain proceeds from the sale of Greater Media’s tower assets. The fair value of the returned shares decreased $1.6 million due to a change in our stock price from January 1, 2018 to March 15, 2018, the date the returned shares were recorded in treasury stock. The fair value of the estimated number of shares to be returned increased $3.9 million over the nine months ended September 30, 2017.

Termination of Postretirement Benefits Plan. Effective May 31, 2017, we terminated the Greater Media postretirement medical and life insurance benefits plan. As a result of the plan termination, we reversed the accrued liability of $1.8 million during the nine months ended September 30, 2017.

Interest Expense. Interest expense decreased $2.8 million during the nine months ended September 30, 2018 as compared to the nine months ended September 30, 2017. The primary factors affecting interest expense was the decrease in long-term debt outstanding and the applicable interest rate.

Other Income (Expense), Net. Other income (expense), net decreased $0.7 million during the nine months ended September 30, 2018 as compared to the nine months ended September 30, 2017 primarily due to expenses of $0.8 million related to a shelf offering.

Income Tax Expense. Our effective tax rate was approximately 26% and 47% for the nine months ended September 30, 2017 and 2018, respectively. These rates differ from the federal statutory rate of 35% and 21% in 2017 and 2018, respectively, due to the effect of state income taxes and certain expenses that are not deductible for tax purposes. The effective tax rate for the nine months ended

19

September 30, 2018 also reflects a $1.2 million increase due to the change in fair value of contingent consideration during that time period. The effective tax rate for the nine months ended September 30, 2017 also reflects a $3.0 million decrease due to the change in fair value of contingent consideration during that time period.

Net Income. Net income during the nine months ended September 30, 2018 was $4.4 million, a decrease of $13.1 million compared to net income of $17.5 million during the nine months ended September 30, 2017 as a result of the factors described above.

Liquidity and Capital Resources

Overview. Our primary sources of liquidity are internally generated cash flow and our revolving credit facility. Our primary liquidity needs have been, and for the next twelve months and thereafter, are expected to continue to be, for working capital, debt service, and other general corporate purposes, including capital expenditures and radio station acquisitions. Historically, our capital expenditures have not been significant. In addition to property and equipment associated with radio station acquisitions, our capital expenditures have generally been, and are expected to continue to be, related to the maintenance of our studio and office space and the technological improvement, including upgrades necessary to broadcast HD Radio, maintenance of our broadcasting towers and equipment, and digital products and information technology. We have also purchased or constructed office and studio space in some of our markets to facilitate the consolidation of our operations.

Our credit agreement permits us to repurchase sufficient shares of our common stock to fund withholding taxes in connection with the vesting of restricted stock units and shares of restricted stock, subject to compliance with financial covenants, up to an aggregate amount of $2.5 million per year. We paid approximately $85,000 to repurchase 8,578 shares during the nine months ended September 30, 2018.

Our credit agreement restricts our ability to pay cash dividends and to repurchase additional shares of our common stock. The credit agreement does permit, however, (i) additional dividends of up to an aggregate amount of $7.5 million each year if our Total Leverage Ratio is greater than 3.5x and up to an aggregate amount of $10.0 million each year if our Total Leverage Ratio is less than or equal to 3.5x, (ii) an amount equal to our excess cash flow each year that is not required to prepay the credit agreement, subject to maintaining a Total Leverage Ratio of no greater than 3.75x and (iii) unlimited dividends each year if our Total Leverage Ratio is less than 3.5x and our First Lien Leverage Ratio (as defined in the credit agreement) is less than 2.5x. We paid cash dividends of $4.0 million during the nine months ended September 30, 2018. Also, on August 22, 2018, our board of directors declared a cash dividend of $0.05 per share on our Class A and Class B common stock. The dividend of $1.4 million in the aggregate was paid on October 5, 2018, to stockholders of record on September 28, 2018.

We expect to provide for future liquidity needs through one or a combination of the following sources of liquidity:

• internally generated cash flow;

• our revolving credit facility;

• additional borrowings, other than under our revolving credit facility, to the extent permitted; and

• additional equity offerings.

We believe that we will have sufficient liquidity and capital resources to permit us to provide for our liquidity requirements and meet our financial obligations for the next twelve months. However, poor financial results or unanticipated expenses could give rise to defaults under our credit facility, additional debt servicing requirements or other additional financing or liquidity requirements sooner than we expect, and we may not secure financing when needed or on acceptable terms.

Our ability to reduce our total leverage ratio, as defined by our credit agreement, by increasing operating cash flow and/or decreasing long-term debt will determine how much, if any, of the remaining commitments under our revolving credit facility will be available to us in the future. Poor financial results or unanticipated expenses could result in our failure to maintain or lower our total leverage ratio and we may not be permitted to make any additional borrowings under our revolving credit facility.

Cash Flows. The following summary table presents a comparison of our capital resources for the nine months ended September 30, 2017 and 2018 with respect to certain of our key measures affecting our liquidity. The changes set forth in the table are discussed in greater detail below. This section should be read in conjunction with the financial statements and notes to financial statements included in Item 1 of this report.

20

	Nine Months ended September 30,
	2017			2018
Net cash provided by operating activities	$	17,754,746		$	15,833,485
Net cash provided by (used in) investing activities		30,778,431			(43,069,058	)
Net cash provided by (used in) financing activities		(53,403,678	)		23,292,684
Net decrease in cash and cash equivalents	$	(4,870,501	)	$	(3,942,889	)

Net Cash Provided By Operating Activities. Net cash provided by operating activities decreased $1.9 million during the nine months ended September 30, 2018 as compared to the nine months ended September 30, 2017. Significant factors affecting this decrease in net cash provided by operating activities included a $6.9 million increase in cash paid for station operating expenses, partially offset by a $2.7 million decrease in interest payments, and a $1.7 million decrease in income tax payments.

Net Cash Provided By (Used In) Investing Activities. Net cash used in investing activities during the nine months ended September 30, 2018 included a payment of $38.0 million for the acquisition of WXTU-FM, payments of $3.3 million for capital expenditures, and payments of $1.5 million for other acquisitions. Net cash provided by investing activities for the same period in 2017 included proceeds of $35.0 million from the disposition of radio stations in Charlotte and Greenville-New Bern-Jacksonville, partially offset by payments of $3.0 million for capital expenditures and payments of $1.1 million for translator licenses.

Net Cash Provided By (Used In) Financing Activities. Net cash provided by financing activities during the nine months ended September 30, 2018 included proceeds of $35.0 million from the issuance of indebtedness used for the acquisition of WXTU-FM, partially offset by repayments of $7.0 million under our credit facility, payments of $4.0 million for cash dividends, and payments of $0.6 million for debt issuance costs related to the additional borrowing. Net cash used in financing activities for the same period in 2017 included repayments of $49.0 million under our credit facility, payments of $3.9 million for cash dividends and payments of $0.5 million for repurchases of our Class A common stock.

Credit Facility. As of September 30, 2018, the credit facility consisted of a term loan with a remaining balance of $253.0 million and a revolving credit facility with a maximum commitment of $20.0 million. As of September 30, 2018, we had $20.0 million in available commitments under our revolving credit facility. At our option, the credit facility may bear interest at either (i) LIBOR plus a margin of 4.0% or (ii) the base rate plus a margin of 3.0%. The LIBOR interest rate for the term loan is subject to a 1% floor. Interest payments are, for loans based on LIBOR, due at the end of each applicable interest period unless the interest period is longer than three months, in which case they are due at the end of each three month period. Interest payments for loans based on the base rate are due quarterly. The revolving credit facility carried interest, based on LIBOR, at 6.2% as of September 30, 2018 and matures on November 17, 2022. The term loan carried interest, based on LIBOR, at 6.2% as of September 30, 2018 and matures on November 1, 2023.

On September 27, 2018, we borrowed an additional $35.0 million under our current term loan. The proceeds were used for the acquisition of WXTU-FM in Philadelphia. In connection with the additional borrowings, we recorded a loss on modification of long-term debt of $0.3 million during the third quarter of 2018.

Commencing with the year ending December 31, 2018, the credit agreement requires mandatory prepayments equal to 50% of Excess Cash Flow (as defined in the credit agreement) when our Total Leverage Ratio (as defined in the credit agreement) is greater than 3.5x; mandatory prepayments equal to 25% of Excess Cash Flow when our Total Leverage Ratio is less than or equal to 3.5x but greater than 3.0x; and no mandatory prepayments when our Total Leverage Ratio is less than or equal to 3.0x. Mandatory prepayments of Excess Cash Flow are due 95 days after year end. The credit agreement also requires mandatory prepayments for defined amounts from net proceeds of asset sales, net insurance proceeds, and net proceeds of debt issuances.

The credit agreement requires us to comply with certain financial covenants which are defined in the credit agreement. These financial covenants include a First Lien Leverage Ratio that will be tested at the end of each quarter. For the period from September 30, 2018 through December 31, 2018, the maximum First Lien Leverage Ratio is 6.0x. For the period from March 31, 2019 through December 31, 2019, the maximum First Lien Leverage Ratio is 5.75x. The maximum First Lien Leverage Ratio is 5.25x for March 31, 2020 and thereafter.

21

The credit facility is secured by substantially all assets of the Company and its subsidiaries and is guaranteed jointly and severally by the Company and its subsidiaries. If we default under the terms of the credit agreement, the Company and its subsidiaries may be required to perform under their guarantees. As of September 30, 2018, the maximum amount of undiscounted payments the Company and its applicable subsidiaries would have been required to make in the event of default was $253.0 million. The guarantees for the credit facility expire on November 17, 2022 for the revolving credit facility and on November 1, 2023 for the term loan.

Failure to comply with financial covenants, scheduled interest payments, scheduled principal repayments, or any other terms of our credit agreement could result in the acceleration of the maturity of our outstanding debt, which could have a material adverse effect on our business or results of operations. As of September 30, 2018, we were in compliance with all applicable financial covenants under our credit agreement.

The aggregate scheduled principal repayments of the credit facility and capital lease obligations for the remainder of 2018, the next four years and thereafter are as follows:

2018	$	16,005
2019		67,101
2020		633,116
2021		2,684,940
2022		2,614,572
Thereafter		247,567,125
Total	$	253,582,859

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not required for smaller reporting companies.

ITEM 4. CONTROLS AND PROCEDURES.

Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we have evaluated the effectiveness of our disclosure controls and procedures pursuant to Exchange Act Rule 13a-15(b) as of the end of the period covered by this report. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that these disclosure controls and procedures are effective as of the end of the period covered by this report.

There were no changes in our internal control over financial reporting during the quarter ended September 30, 2018 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

We currently and from time to time are involved in litigation and are the subject of threats of litigation that are incidental to the conduct of our business. These include indecency claims and related proceedings at the FCC as well as claims and threatened claims by private third parties. However, we are not a party to any lawsuit or other proceedings, or the subject of any threatened lawsuit or other proceedings, which, in the opinion of management, is likely to have a material adverse effect on our financial condition or results of operations.

ITEM 1A. RISK FACTORS.

The risk factors affecting our Company are described in Item 1A of our Annual Report on Form 10-K for the year ended December  31, 2017. There have been no material changes to the risks affecting our Company during the third quarter of 2018.

ITEM  2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

The following table presents information with respect to purchases we made of our Class A common stock during the three months ended September 30, 2018.

Period	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Program		Approximate Dollar Value of Shares That May Yet Be Purchased Under the Program
July 1 – 31, 2018		—		—		—		—
August 1 – 31, 2018		375	$	7.08		—		—
September 1 – 30, 2018		1,875		7.70		—		—
Total		2,250

On March 27, 2007, our board of directors approved the Beasley Broadcast Group, Inc. 2007 Equity Incentive Award Plan (the “2007 Plan”). The original ten year term of the 2007 Plan ended on March 27, 2017. Our stockholders approved an amendment to the 2007 Plan at the Annual Meeting of Stockholders on June 8, 2017 to, among other things, extend the term of the 2007 Plan until March 27, 2027. The 2007 Plan permits us to purchase sufficient shares to fund withholding taxes in connection with the vesting of restricted stock units and shares of restricted stock. Our credit agreement permits us to repurchase sufficient shares of our common stock to fund withholding taxes in connection with the vesting of restricted stock units and shares of restricted stock, subject to compliance with financial covenants, up to an aggregate amount of $2.5 million per year. All shares purchased during the three months ended September 30, 2018, were purchased to fund withholding taxes in connection with the vesting of restricted stock units and shares of restricted stock.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4. MINE SAFETY DISCLOSURES.

Not applicable.

ITEM 5. OTHER INFORMATION.

On November 1, 2018, Beasley Mezzanine Holdings, LLC, a wholly owned subsidiary of the Company, entered into an Amendment (the “Amendment”) to its previously existing Employment Agreement dated June 8, 2017, with Marie Tedesco, Chief Financial Officer of the Company. The Amendment provides Ms. Tedesco with a base salary of $350,000, with the potential for an increase to $400,000 on August 1, 2019. The Amendment also provides Ms. Tedesco with the opportunity to earn an annual performance-based bonus award of 40% of her base salary. No other changes were made to previously existing Employment Agreement.

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ITEM 6. EXHIBITS.

Exhibit Number	Description
10.1	Incremental Term Loan Amendment to Credit Agreement, dated August 24, 2018, to the Credit Agreement, dated November  17, 2017, among Beasley Broadcast Group, Inc., Beasley Mezzanine Holdings, LLC, the other guarantors party thereto, U.S. Bank, National Association, as Administrative Agent, Collateral Agent, Swing Line Lender and L/C Issuer, and each lender from time to time party thereto, incorporated by reference to Exhibit 10.1 to Beasley Broadcast Group, Inc.’s Current Report on Form 8-K filed with the Securities and Exchange Commission on August 27, 2018.
10.2	Amendment dated November 1, 2018, to the executive employment agreement by and between Beasley Mezzanine Holdings, LLC and Marie Tedesco dated as of June 8, 2017.
31.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) (17 CFR 240.15d-14(a)).
31.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) (17 CFR 240.15d-14(a)).
32.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(b)/15d-14(b) (17 CFR 240.15d-14(b)) and 18 U.S.C. Section 1350.
32.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(b)/15d-14(b) (17 CFR 240.15d-14(b)) and 18 U.S.C. Section 1350.
101.INS	XBRL Instance Document.
101.SCH	XBRL Taxonomy Extension Schema Document.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.

24

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	BEASLEY BROADCAST GROUP, INC.
Dated: November 6, 2018		/s/ Caroline Beasley
		Name:	Caroline Beasley
		Title:	Chief Executive Officer (principal executive officer)
Dated: November 6, 2018		/s/ Marie Tedesco
		Name:	Marie Tedesco
		Title:	Chief Financial Officer (principal financial and accounting officer)

25

EX-10.2

Exhibit 10.2

AMENDMENT

TO THE

EMPLOYMENT AGREEMENT BETWEEN

BEASLEY MEZZANINE HOLDINGS, LLC.

AND

MARIE TEDESCO

This Amendment (“Amendment”) to that certain Employment Agreement (“Employment Agreement”) effective January 1, 2017 between Beasley Mezzanine Holdings, LLC (“Employer”) and Marie Tedesco (“Employee”) (the “Employment Agreement”) is effective as of August 1, 2018 (the “Amendment Date”) by and among the Employer and the Employee.

WITNESSETH

WHEREAS, the Employer and the Employee desire to amend certain terms of the Employment Agreement;

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Employee and the Employer hereby agree as of the Amendment Date to the following:

1. The Base Salary and Bonus Paragraphs in Attachment B of the Agreement are deleted in their entirety and replaced with Attachment B, which is attached hereto and incorporated herein to this Amendment.

2. No Other Amendment. Except as expressly set forth in this Amendment, the Employment Agreement shall remain unchanged and shall continue in full force and effect according to its terms.

3. Acknowledgement. The Employee acknowledges and agrees that the Employee has carefully read this Amendment in its entirety fully understands and agrees to its terms and provisions and intends and agrees that it be final and legally binding on the Employee and the Employer.

IN WITNESS WHEREOF, the Employee has hereunto set the Employee’s hand and the Employer has caused this Amendment to be executed in its name on its behalf, all as of November 1, 2018.

EMPLOYEE	EMPLOYER
/s/ Marie Tedesco	By:	/s/ Caroline Beasley
Marie Tedesco	Caroline Beasley, CEO

ATTACHMENT B

BASE SALARY: $350,000.00, with a potential increase of up to $400,000.00 on August 1, 2019.

BONUS: Employee shall be eligible to receive an annual bonus of forty percent (40%) of her Base Salary for each calendar year during the Term to be determined by the Compensation Committee of the Board to be based on criteria as set forth in the Performance Incentive Plan dated January 1, 2012, or any successor Performance Incentive Plan approved by the Compensation Committee, such Annual Bonus to be established by the Compensation Committee in its sole discretion. The annual bonus shall be paid in no event later than March 15th of the calendar year following the calendar year in which such bonus is earned.

2

EX-31.1

Exhibit 31.1

Certification of Chief Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Caroline Beasley, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Beasley Broadcast Group, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: November 6, 2018	/s/ Caroline Beasley
	Title: Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification of Chief Financial Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Marie Tedesco, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Beasley Broadcast Group, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: November 6, 2018	/s/ Marie Tedesco
	Title: Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification of Chief Executive Officer

Pursuant to 18 U.S.C. § 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of Beasley Broadcast Group, Inc. (the “Company”) hereby certifies to such officer’s knowledge that:

(i)    the accompanying Quarterly Report on Form 10-Q of the Company for the quarterly period ended September 30, 2018 (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

(ii)    the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: November 6, 2018	/s/ Caroline Beasley
	Caroline Beasley
	Chief Executive Officer

The foregoing certification is being furnished solely to accompany the Report pursuant to 18 U.S.C. § 1350, and is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

EX-32.2

Exhibit 32.2

Certification of Chief Financial Officer

Pursuant to 18 U.S.C. § 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of Beasley Broadcast Group, Inc. (the “Company”) hereby certifies to such officer’s knowledge that:

(i)    the accompanying Quarterly Report on Form 10-Q of the Company for the quarterly period ended September 30, 2018 (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

(ii)    the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: November 6, 2018	/s/ Marie Tedesco
	Marie Tedesco
	Chief Financial Officer

The foregoing certification is being furnished solely to accompany the Report pursuant to 18 U.S.C. § 1350, and is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Oct. 30, 2018
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3
Trading Symbol	BBGI
Entity Registrant Name	BEASLEY BROADCAST GROUP INC
Entity Central Index Key	0001099160
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Class A Common Stock [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		10,821,270
Class B Common Stock [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		16,662,743

XML

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 9,979,501	$ 13,922,390
Accounts receivable, less allowance for doubtful accounts of $1,623,408 in 2017 and $1,836,570 in 2018	46,784,485	42,669,351
Prepaid expenses	10,059,743	6,001,996
Merger consideration receivable		17,931,331
Other current assets	5,507,574	4,135,905
Total current assets	72,331,303	84,660,973
Property and equipment, net	58,514,125	59,318,933
FCC broadcasting licenses	516,585,379	489,186,679
Goodwill	25,377,447	15,275,264
Other intangibles, net	3,007,925	550,058
Other assets	5,957,487	5,726,874
Total assets	681,773,666	654,718,781
Current liabilities:
Current installments of long-term debt	66,331	2,314,020
Accounts payable	14,563,405	7,847,829
Other current liabilities	20,254,443	18,799,195
Total current liabilities	34,884,179	28,961,044
Due to related parties	686,507	759,041
Long-term debt, net of current installments and unamortized debt issuance costs	243,809,065	212,465,882
Deferred tax liabilities	117,502,879	115,282,931
Other long-term liabilities	10,961,413	11,083,683
Total liabilities	407,844,043	368,552,581
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value; 10,000,000 shares authorized; none issued
Additional paid-in capital	149,795,872	147,987,332
Treasury stock, Class A common stock; 3,032,740 shares in 2017; 4,379,477 shares in 2018	(30,267,980)	(16,667,085)
Retained earnings	154,680,213	154,389,494
Accumulated other comprehensive income (loss)	(310,345)	424,574
Total stockholders' equity	273,929,623	286,166,200
Total liabilities and stockholders' equity	681,773,666	654,718,781
Class A Common Stock [Member]
Stockholders' equity:
Common stock	15,201	15,223
Class B Common Stock [Member]
Stockholders' equity:
Common stock	$ 16,662	$ 16,662

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Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Allowance for doubtful accounts	$ 1,836,570	$ 1,623,408
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Treasury stock, Class A common stock shares	4,379,477	3,032,740
Class A Common Stock [Member]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	15,200,747	15,222,738
Common stock, shares outstanding	10,821,270	12,189,998
Class B Common Stock [Member]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	16,662,743	16,662,743
Common stock, shares outstanding	16,662,743	16,662,743

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Condensed Consolidated Statements of Comprehensive Income - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Statement [Abstract]
Net revenue	$ 65,147,080	$ 58,902,050	$ 181,926,003	$ 173,656,015
Operating expenses:
Station operating expenses (including stock-based compensation of $69,815 and $156,338 in three month ended September 30, 2017 and 2018 and $203,530 and $529,802 in nine month ended September 30, 2017 and 2018 respectively excluding depreciation and amortization shown separately below)	50,351,099	42,481,721	140,831,239	131,344,313
Corporate general and administrative expenses (including stock-based compensation of $472,167 and $301,116 in three month ended September 30, 2017 and 2018 and $1,310,147 and $1,248,828 in nine month ended September 30, 2017 and 2018 respectively)	3,665,865	4,026,521	11,388,637	11,745,100
Transaction expenses	110,901		110,901	746,070
Other operating expenses		290,581		871,743
Depreciation and amortization	1,693,073	1,453,167	4,801,859	4,575,646
Change in fair value of contingent consideration		(2,524,195)	4,415,925	(7,666,145)
Gain on dispositions, net				(3,707,993)
Termination of postretirement benefits plan				(1,812,448)
Total operating expenses	55,820,938	45,727,795	161,548,561	136,096,286
Operating income	9,326,142	13,174,255	20,377,442	37,559,729
Non-operating income (expense):
Interest expense	(4,073,658)	(4,717,530)	(11,504,473)	(14,296,913)
Loss on modification of long-term debt	(281,021)		(281,021)
Other income (expense), net	(761,275)	46,219	(285,063)	441,936
Income before income taxes	4,210,188	8,502,944	8,306,885	23,704,752
Income tax expense	1,578,412	2,432,740	3,917,689	6,242,531
Net income	2,631,776	6,070,204	4,389,196	17,462,221
Other comprehensive income:
Unrealized losses on securities (net of income tax benefit of $726 and $16,463 in three and nine month ended September 30, 2017 respectively)		(1,119)		(25,364)
Unrecognized actuarial losses on postretirement plans (net of income tax benefit of $40,697 and $40,697 in three and six month ended June 30, 2017 respectively)				(62,699)
Reclassification of other comprehensive income due to termination of pension plan (net of income tax benefit of $261,358)			(731,265)
Comprehensive income	$ 2,631,776	$ 6,069,085	$ 3,657,931	$ 17,374,158
Net income per Class A and B common share:
Basic and diluted	$ 0.10	$ 0.22	$ 0.16	$ 0.63
Dividends declared per common share	$ 0.050	$ 0.045	$ 0.150	$ 0.135
Weighted average shares outstanding:
Basic	27,351,587	27,705,736	27,469,904	27,690,199
Diluted	27,500,840	27,907,570	27,664,999	27,886,984

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Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Stock-based compensation			$ 1,778,630	$ 1,513,677
Unrealized losses on securities, income tax benefit		$ 726		16,463
Unrecognized actuarial gains (losses) on postretirement plans, income tax expense (benefit)				40,697
Reclassification of other comprehensive income due to termination of pension plan, income tax benefit			261,358
Station Operating Expenses [Member]
Stock-based compensation	$ 156,338	69,815	529,802	203,530
Corporate General and Administrative Expenses [Member]
Stock-based compensation	$ 301,116	$ 472,167	$ 1,248,828	$ 1,310,147

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Condensed Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net income	$ 4,389,196	$ 17,462,221
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation	1,778,630	1,513,677
Provision for bad debts	2,472,298	1,138,019
Depreciation and amortization	4,801,859	4,575,646
Change in fair value of contingent consideration	4,415,925	(7,666,145)
Gain on dispositions, net		(3,707,993)
Termination of retirement benefits plan		(1,812,448)
Amortization of loan fees	1,415,549	1,640,424
Loss on modification of long-term debt	281,021
Deferred income taxes	2,481,306	5,785,088
Change in operating assets and liabilities:
Accounts receivable	(6,587,432)	1,697,994
Prepaid expenses	(4,057,747)	(2,146,627)
Other assets	(1,511,179)	921,482
Accounts payable	6,715,576	1,758,187
Other liabilities	212,056	(3,453,897)
Other operating activities	19,050	49,118
Net cash provided by operating activities	15,833,485	17,754,746
Cash flows from investing activities:
Payments for acquisitions	(39,520,000)
Capital expenditures	(3,346,558)	(2,962,466)
Proceeds from dispositions		35,000,000
Payments for translator licenses	(52,500)	(1,109,103)
Payments for investments	(150,000)
Loan to related party		(150,000)
Net cash provided by (used in) investing activities	(43,069,058)	30,778,431
Cash flows from financing activities:
Issuance of debt	35,000,000
Payments on debt	(7,048,014)	(49,045,808)
Payments of debt issuance costs	(553,062)
Dividends paid	(4,020,751)	(3,851,460)
Purchase of treasury stock	(85,489)	(506,410)
Net cash provided by (used in) financing activities	23,292,684	(53,403,678)
Net decrease in cash and cash equivalents	(3,942,889)	(4,870,501)
Cash and cash equivalents at beginning of period	13,922,390	20,325,415
Cash and cash equivalents at end of period	9,979,501	15,454,914
Cash paid for interest	9,993,376	12,672,589
Cash paid for income taxes	273,200	2,021,125
Supplement disclosure of non-cash investing and financing activities:
Dividends declared but unpaid	1,367,761	1,286,010
Translator license and equipment received as consideration		332,000
Note receivable and accrued interest converted to investment	187,618
Postretirement Benefits Plan [Member]
Adjustments to reconcile net income to net cash provided by operating activities:
Termination of retirement benefits plan		$ (1,812,448)
Pension Plan [Member]
Adjustments to reconcile net income to net cash provided by operating activities:
Termination of retirement benefits plan	(992,623)
Class A Common Stock [Member]
Supplement disclosure of non-cash investing and financing activities:
Class A common stock returned to treasury stock	13,515,406
Common stock issued for acquisition	$ 29,888

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Interim Financial Statements

9 Months Ended

Sep. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Interim Financial Statements

(1) Interim Financial Statements

The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of Beasley Broadcast Group, Inc. and its subsidiaries (the “Company”) included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. These financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the financial statements reflect all adjustments necessary for a fair statement of the financial position and results of operations for the interim periods presented and all such adjustments are of a normal and recurring nature. The Company’s results are subject to seasonal fluctuations, therefore the results shown on an interim basis are not necessarily indicative of results for the full year.

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Recent Accounting Pronouncements

9 Months Ended

Sep. 30, 2018

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Pronouncements

(2) Recent Accounting Pronouncements

In February 2016, the FASB issued guidance to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. There continues to be a differentiation between finance leases and operating leases, however lease assets and lease liabilities arising from operating leases should now be recognized in the statement of financial position. New disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. In 2018, the FASB issued several updates to address certain practical expedients, codification improvements, and targeted improvements to the original guidance. The new guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is in the final stages of assessment of the new guidance but expects it to result in (i) a significant increase in assets due to the recognition of right-of-use assets on the balance sheet and (ii) a significant increase in liabilities due to the recognition of lease liabilities on the balance sheet, however the amount of these increases will not be quantified until closer to the adoption date. The Company’s initial assessment, which is subject to change, is that the new guidance is not expected to have a significant impact on the statement of comprehensive income.

In May 2014, the FASB issued guidance to clarify the principles for recognizing revenue. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides a comprehensive framework for revenue recognition that supersedes current general revenue guidance and most industry-specific guidance. In addition, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. In 2016, the FASB issued several updates to address implementation issues and to clarify guidance for principal versus agent considerations and identifying performance obligations and licensing. The Company adopted the new guidance on January 1, 2018, using the modified retrospective method, with no impact on its financial statements. The cumulative effect of initially applying the new guidance had no impact on the opening balance of retained earnings as of January 1, 2018. There was no impact on the condensed consolidated balance sheet as of September 30, 2018 or on the condensed consolidated statements of comprehensive income for the three and nine months ended September 30, 2018. The comparative information has not been restated and continues to be reported under the accounting guidance in effect for that period. The Company does not expect the new guidance to have a material impact on its financial statements in future periods.

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Acquisitions and Dispositions

9 Months Ended

Sep. 30, 2018

Business Combinations [Abstract]

Acquisitions and Dispositions

(3) Acquisitions and Dispositions

Greater Media Merger

On November 1, 2016, (the “Acquisition Date”), the Company completed the acquisition of Greater Media, Inc. (“Greater Media”), pursuant to the merger agreement, dated as of July 19, 2016 by and among the Company, Greater Media, Beasley Media Group 2, Inc., an indirect wholly-owned subsidiary of the Company (“Merger Sub”), and Peter A. Bordes, Jr., as the Stockholders’ Representative (the “Merger Agreement”). On the Acquisition Date, Merger Sub was merged with and into Greater Media, with Greater Media surviving the merger as an indirect wholly-owned subsidiary of the Company (the “Merger”). As a result of the Merger, the Company added 21 radio stations in the Boston, MA, Detroit, MI, Charlotte, NC, Middlesex, NJ, Monmouth, NJ, Morristown, NJ and Philadelphia, PA markets.

On the Acquisition Date, in accordance with the Merger Agreement, the Company placed 867,679 shares of the Company’s Class A common stock with a fair value of $4.2 million in escrow. These escrow shares were to be distributed either to the Company for cancellation or to Greater Media based upon a working capital adjustment. As of the Acquisition Date based on the estimated working capital adjustment, the Company estimated that 189,915 shares of Class A common stock would be released to Greater Media and the remainder would be forfeited to the Company for cancellation. The estimated number of shares to be released to Greater Media had a fair value of $0.9 million as of the Acquisition Date and were included in the purchase price. The estimated shares to be forfeited were not indexed to the Company’s stock price and therefore were adjusted to fair value based on the Company’s closing stock price on each reporting date with changes in fair value recorded in earnings. The estimated number of shares to be forfeited had a fair value of $3.3 million as of the Acquisition Date.

Also, in accordance with the Merger Agreement, the purchase price was to be adjusted by certain proceeds from the sale of Greater Media’s towers assets. Based on the proceeds from the tower sale, the former stockholders of Greater Media were required to return a certain number of shares of Class A common stock to the Company for cancellation. The Company accounted for this arrangement as contingent consideration subject to the ultimate sale of the tower assets. As of the Acquisition Date, the Company estimated the sales price of the towers to be $28.0 million which resulted in the expected return of 650,759 shares. As of the Acquisition Date, the estimated number of shares to be returned had a fair value of $3.4 million. On February 27, 2017, the former stockholders of Greater Media entered into an asset purchase agreement to sell the towers for $28.0 million.

On December 29, 2017, the Company entered into a settlement agreement with Greater Media regarding the working capital adjustment and proceeds from the tower sale. As a result, all 867,679 shares held in escrow for the working capital adjustment were forfeited to the Company and recorded in treasury stock on March 15, 2018 and the former stockholders of Greater Media returned 470,480 shares to the Company related to the tower sale proceeds, which were recorded in treasury stock on March 15, 2018. The forfeited shares previously held in escrow for the working capital adjustment had a fair value of $11.6 million and $8.8 million as of December 31, 2017 and March 15, 2018, respectively. The shares returned by the former stockholders of Greater Media related to the tower sale proceeds had a fair value of $6.3 million and $4.8 million as of December 31, 2017 and March 15, 2018, respectively.

The Company engaged a third party to evaluate certain net operating loss carryforwards related to Greater Media, Inc. and several of its subsidiaries to determine the amount of net operating loss carryforwards that may be utilized by the Company in future tax returns. These evaluations had not been finalized as of the Acquisition Date, therefore an estimate of $3.6 million for net operating loss carryforwards was included in the purchase price. The accounting for this item was not finalized before the end of the measurement period, therefore any adjustment was to be recognized in current operations during the period in which the accounting was finalized. The evaluations were finalized during the third quarter of 2018 and an adjustment of $0.2 million was recognized in income tax expense during the three and nine months ended September 30, 2018.

Effective on the Acquisition Date, the Company entered into an agreement with the former CEO of Greater Media to provide consulting services for a period of one year. The costs associated with this agreement are reported in other operating expenses in the accompanying statement of comprehensive income for the three and nine months ended September 30, 2017.

Dispositions

On January 6, 2017, the Company completed the sale of substantially all of the assets used or useful in the operations of WBT-AM, WBT-FM, WFNZ-AM and WLNK-FM in Charlotte, NC to Entercom Communications Corp. for $24.0 million in cash. The Company repaid a portion of the outstanding balance under its credit facility with the sales proceeds. The Company recorded a $0.3 million loss on disposition during the first quarter of 2017.

On May 1, 2017, the Company completed the sale of substantially all of the assets used in the operations of WIKS-FM, WMGV-FM, WNCT-AM, WNCT-FM, WSFL-FM and WXNR-FM in its Greenville-New Bern-Jacksonville, NC market cluster to CMG Coastal Carolina, LLC for $11.0 million in cash and a translator license and equipment with a fair value of $0.3 million. The Company repaid a portion of the outstanding balance under its credit facility with the cash sales proceeds. The Company recorded a $4.0 million gain on disposition during the second quarter of 2017.

Asset Exchange

On December 19, 2017, the Company completed an asset exchange with CBS Radio Stations, Inc., Entercom Boston, LLC, and The Entercom Divestiture Trust under which the Company agreed to exchange all of the assets used or useful in the operations of WMJX-FM in Boston, MA for all of the assets used or useful in the operations of WBZ-FM in Boston, MA. In addition, the Company also paid $12.0 million in cash, which was partially financed with $6.0 million in borrowings from the Company’s credit facility and partially funded with $6.0 million in cash from operations. The asset exchange broadened and diversified the Company’s local radio broadcasting platform and revenue base in the Boston radio market. Further information regarding the asset exchange is included in Note 3 to the consolidated financial statements contained in Item 8 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 filed on February 20, 2018.

Acquisition

On September 27, 2018, the Company completed the acquisition of WXTU-FM in Philadelphia from Entercom Communications Corp. for $38.0 million in cash. The purchase price was partially financed with $35.0 million in borrowings from the Company’s credit facility and partially funded with $3.0 million of cash from operations. On July 19, 2018, the Company also entered into a local marketing agreement (“LMA”) with Entercom Communications Corp. and began operating WXTU-FM on July 23, 2018. During the term of the LMA, the Company included net revenues and station operating expenses, including the associated LMA fee from operating WXTU-FM, in its consolidated financial statements. The LMA ended on September 27, 2018. The acquisition broadened and diversified the Company’s local radio broadcasting platform and revenue base in the Philadelphia radio market.

The acquisition was accounted for as a business combination. The Company incurred transaction costs of $0.1 million.

The purchase price allocation is summarized as follows:

Property and equipment	$	357,734
FCC broadcasting license		27,346,200
Goodwill		10,102,183
Other intangibles		193,883
	$	38,000,000

The fair value of the property and equipment was estimated using cost and market approaches. Property and equipment for which there are comparable current replacements available were valued on the basis of a cost approach. The cost approach allowed for factors such as physical depreciation as well as functional and economic obsolescence. Property and equipment for which an active used market exists, including property for which there is no longer comparable current replacements available but for which there remains an active used market were valued using a market approach. The market approach is based on the selling prices of similar assets on the used market. As few sales reflect identical assets, the selling prices of similar assets was utilized with adjustments made for any differences such as age, condition, and options. If different assumptions or estimates had been used in the cost or market approaches, the fair value of the property and equipment could have been materially different.

The fair value of the Federal Communications Commission (“FCC”) broadcasting licenses were estimated using an income approach. The income approach measures the expected economic benefits the licenses provide and discounts these future benefits using discounted cash flow analyses. The discounted cash flow analyses assume that each license is held by a hypothetical start-up radio station, and the value yielded by the discounted cash flow analyses represents the portion of the radio station’s value attributable solely to its license. The discounted cash flow model incorporates variables such as radio market revenues; the projected growth rate for radio market revenues; projected radio market revenue share; projected radio station operating income margins; and a discount rate appropriate for the radio broadcasting industry. The variables used in the analyses reflect historical radio station and market growth trends, as well as anticipated radio station performance, industry standards, and market conditions. The discounted cash flow projection period of ten years was determined to be an appropriate time horizon for the analyses. Stable market revenue share and operating margins are expected at the end of year three (maturity). If different assumptions or estimates had been used in the income approach, the fair value of the FCC broadcasting licenses could have been materially different. If actual results are different from assumptions or estimates used in the discounted cash flow analyses, we may incur impairment losses in the future and they may be material.

The key assumptions used in the valuation of the FCC broadcasting licenses are as follows:

Revenue growth rates	0.6% - 1.3%
Market revenue shares at maturity	5.4%
Operating income margins at maturity	30.5%
Discount rate	9.0%

Goodwill was equal to the amount the purchase price exceeded the values allocated to the tangible and identifiable intangible assets. The $10.1 million allocated to goodwill is deductible for tax purposes.

The following unaudited pro forma information for the three and nine months ended September 30, 2017 and 2018 assumes that the acquisitions and dispositions had occurred on January 1, 2017. This unaudited pro forma information has been prepared based on estimates and assumptions, which management believes are reasonable, and are not necessarily indicative of what would have occurred had the acquisition been completed on January 1, 2017 or of results that may occur in the future.

	Three months ended September 30,				Nine months ended September 30,
	2017		2018		2017		2018
Net revenue	$	67,354,259	$	65,631,709	$	193,482,282	$	187,926,182
Operating income		13,816,564		10,555,269		32,834,524		28,781,994
Net income		5,097,542		3,274,153		10,200,662		10,086,885
Basic net income per share		0.18		0.12		0.37		0.37
Diluted net income per share		0.18		0.12		0.37		0.36

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Long-Term Debt

9 Months Ended

Sep. 30, 2018

Debt Disclosure [Abstract]

Long-Term Debt

(4) Long-Term Debt

Long-term debt is comprised of the following:

	December 31, 2017			September 30, 2018
Term loan	$	225,000,000		$	253,000,000
Revolving credit facility		—			—
Capital lease obligations		630,874			582,859
		225,630,874			253,582,859
Less unamortized debt issuance costs		(10,850,972	)		(9,707,463	)
		214,779,902			243,875,396
Less current installments		(2,314,020	)		(66,331	)
	$	212,465,882		$	243,809,065

As of September 30, 2018, the credit facility consisted of a term loan with a remaining balance of $253.0 million and a revolving credit facility with a maximum commitment of $20.0 million. As of September 30, 2018, the Company had $20.0 million in available commitments under its revolving credit facility. At the Company’s option, the credit facility may bear interest at either (i) the London Interbank Offered Rate (“LIBOR”) plus a margin of 4.0% or (ii) the base rate plus a margin of 3.0%. The LIBOR interest rate for the term loan is subject to a 1% floor. Interest payments are, for loans based on LIBOR, due at the end of each applicable interest period unless the interest period is longer than three months, in which case they are due at the end of each three month period. Interest payments for loans based on the base rate are due quarterly. The revolving credit facility carried interest, based on LIBOR, at 6.2% as of September 30, 2018 and matures on November 17, 2022. The term loan carried interest, based on LIBOR, at 6.2% as of September 30, 2018 and matures on November 1, 2023.

On September 27, 2018, the Company borrowed an additional $35.0 million under its current term loan. The proceeds were used for the acquisition of WXTU-FM in Philadelphia. In connection with the additional borrowings, the Company recorded a loss on modification of long-term debt of $0.3 million during the third quarter of 2018.

As of December 31, 2017, the credit facility consisted of a term loan with a remaining balance of $225.0 million and a revolving credit facility with a maximum commitment of $20.0 million. The revolving credit facility and term loan carried interest, based on LIBOR, at 5.5% as of December 31, 2017.

Commencing with the year ending December 31, 2018, the credit agreement requires mandatory prepayments equal to 50% of Excess Cash Flow (as defined in the credit agreement) when the Company’s Total Leverage Ratio (as defined in the credit agreement) is greater than 3.5x; mandatory prepayments equal to 25% of Excess Cash Flow when the Total Leverage Ratio is less than or equal to 3.5x but greater than 3.0x; and no mandatory prepayments when the Total Leverage Ratio is less than or equal to 3.0x. Mandatory prepayments of Excess Cash Flow are due 95 days after year end. The credit agreement also requires mandatory prepayments for defined amounts from net proceeds of asset sales, net insurance proceeds, and net proceeds of debt issuances.

The credit agreement requires the Company to comply with certain financial covenants which are defined in the credit agreement. These financial covenants include a First Lien Leverage Ratio that will be tested at the end of each quarter. For the period from September 30, 2018 through December 31, 2018, the maximum First Lien Leverage Ratio is 6.0x. For the period from March 31, 2019 through December 31, 2019, the maximum First Lien Leverage Ratio is 5.75x. The maximum First Lien Leverage Ratio is 5.25x for March 31, 2020 and thereafter.

The credit facility is secured by substantially all assets of the Company and its subsidiaries and is guaranteed jointly and severally by the Company and its subsidiaries. If the Company defaults under the terms of the credit agreement, the Company and its subsidiaries may be required to perform under their guarantees. As of September 30, 2018, the maximum amount of undiscounted payments the Company and its applicable subsidiaries would have been required to make in the event of default was $253.0 million. The guarantees for the credit facility expire on November 17, 2022 for the revolving credit facility and on November 1, 2023 for the term loan.

Failure to comply with financial covenants, scheduled interest payments, scheduled principal repayments, or any other terms of the credit agreement could result in the acceleration of the maturity of the Company’s outstanding debt, which could have a material adverse effect on the Company’s business or results of operations. As of September 30, 2018, the Company was in compliance with all applicable financial covenants under the credit agreement.

The aggregate scheduled principal repayments of the credit facility and capital lease obligations for the remainder of 2018, the next four years and thereafter are as follows:

2018	$	16,005
2019		67,101
2020		633,116
2021		2,684,940
2022		2,614,572
Thereafter		247,567,125
Total	$	253,582,859

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Stockholders' Equity

9 Months Ended

Sep. 30, 2018

Equity [Abstract]

Stockholders' Equity

(5) Stockholders’ Equity

The changes in stockholders’ equity for the three and nine months ended September 30, 2017 and 2018 are as follows:

	Three months ended September 30,						Nine months ended September 30,
	2017			2018			2017			2018
Beginning balance	$	211,719,400		$	272,195,359		$	202,491,623		$	286,166,200
Issuance of common stock		—			29,888			—			29,888
Stock-based compensation		541,982			457,454			1,513,677			1,778,630
Purchase of treasury stock		(28,408	)		(17,093	)		(506,410	)		(13,600,895	)
Net income		6,070,204			2,631,776			17,462,221			4,389,196
Cash dividends		(1,286,010	)		(1,367,761	)		(3,857,060	)		(4,102,131	)
Other comprehensive loss		(1,180	)		—			(88,063	)		(731,265	)
Ending balance	$	217,015,988		$	273,929,623		$	217,015,988		$	273,929,623

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Revenue

9 Months Ended

Sep. 30, 2018

Revenue from Contract with Customer [Abstract]

Revenue

(6) Revenue

Revenue is comprised of the following:

	Three months ended September 30,				Nine months ended September 30,
	2017		2018		2017		2018
Commercial advertising	$	52,162,713	$	56,644,127	$	154,527,033	$	157,761,002
Digital advertising		3,311,548		3,496,136		9,711,397		10,826,473
Other		3,427,789		5,006,817		9,417,585		13,338,528
	$	58,902,050	$	65,147,080	$	173,656,015	$	181,926,003

The Company recognizes revenue when it satisfies a performance obligation under a contract with an advertiser. The transaction price is allocated to performance obligations based on executed contracts which represent relative standalone selling prices. Payment is generally due within 30 days although certain advertisers are required to pay in advance. Revenues are reported at the amount the Company expects to be entitled to receive under the contract. The Company has elected to use the practical expedient to expense sales commissions as incurred. Payments received from advertisers before the performance obligation is satisfied are recorded as deferred revenue in the balance sheet. Substantially all deferred revenue is recognized within twelve months of the payment date.

	December 31, 2017		September 30, 2018
Deferred revenue	$	1,893,508	$	2,718,519

	Three months ended September 30,				Nine months ended September 30,
	2017		2018		2017		2018
Losses on receivables	$	354,814	$	1,845,022	$	1,193,593	$	2,259,136

Commercial advertising includes revenue from the sale or trade of aired commercial spots to advertisers directly or through national, regional or local advertising agencies. Each commercial spot is considered a performance obligation. Revenue is recognized when the commercial spots have aired. Trade sales are recorded at the estimated fair value of the goods or services received. If commercial spots are aired before the goods or services are received then a trade sales receivable is recorded. If goods or services are received before the commercial spots are aired then a trade sales payable is recorded.

	December 31, 2017		September 30, 2018
Trade sales receivable	$	1,550,172	$	1,563,809
Trade sales payable		1,276,170		1,315,712

	Three months ended September 30,				Nine months ended September 30,
	2017		2018		2017		2018
Trade sales revenue	$	2,144,090	$	2,790,888	$	6,916,643	$	6,409,976

Digital advertising includes revenue from the sale of streamed commercial spots, station-owned assets and third party products. Each streamed commercial spot, station-owned asset and third party product is considered a performance obligation. Revenue is recognized when the commercial spots have streamed. Station-owned assets are generally scheduled over a period of time and revenue is recognized over time as the digital items are used for advertising content except for streamed commercial spots. Third-party products are generally scheduled over a period of time with an impression target each month. Revenue from the sale of third-party products is recognized over time as the digital items are used for advertising content and impression targets are met each month.

Other revenue includes revenue from concerts, promotional events, talent fees and other miscellaneous items. Revenue is generally recognized when the event is completed, as the promotional events are completed, or as the talent services are completed.

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Employee Benefit Plans

9 Months Ended

Sep. 30, 2018

Postemployment Benefits [Abstract]

Employee Benefit Plans

(7) Employee Benefit Plans

Effective May 31, 2017, the Company terminated the Greater Media, Inc. Pension Plan (the “Pension Plan”). In December 2017, lump sum payments were made from the trust to participants who elected to receive a lump sum payment. In January 2018, a payment of $52.0 million was made from the trust to an insurance company to purchase annuities for the remaining participants who elected to receive annuity payments. As a result of the termination, the Company recognized a $1.0 million gain that was recorded in corporate general and administrative expenses for the nine months ended September 30, 2018. This completed the recognition in earnings of the amount related to the Pension Plan that remained in accumulated other comprehensive income as of December 31, 2017.

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Stock-Based Compensation

9 Months Ended

Sep. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

(8) Stock-Based Compensation

The Beasley Broadcast Group, Inc. 2007 Equity Incentive Award Plan (the “2007 Plan”) permits the Company to issue up to 7.5 million shares of Class A common stock. The 2007 Plan allows for eligible employees, directors and certain consultants of the Company to receive restricted stock units, shares of restricted stock, stock options or other stock-based awards. The restricted stock units and restricted stock awards that have been granted under the 2007 Plan generally vest over one to five years of service.

A summary of restricted stock unit activity is presented below:

	Restricted Stock Units			Weighted- Average Grant-Date Fair Value
Unvested as of July 1, 2018		499,335		$	10.57
Granted		48,444			6.66
Vested		1,143			12.27
Forfeited		(4,500	)		10.65
Unvested as of September 30, 2018		544,422		$	9.57

A summary of restricted stock activity is presented below:

	Shares			Weighted- Average Grant-Date Fair Value
Unvested as of July 1, 2018		156,786		$	6.54
Granted		—			—
Vested		(7,500	)		4.90
Forfeited		(24,286	)		5.51
Unvested as of September 30, 2018		125,000		$	6.85

As of September 30, 2018, there was $4.8 million of total unrecognized compensation cost for restricted stock units and shares of restricted stock granted under the 2007 Plan. That cost is expected to be recognized over a weighted-average period of 2.1 years.

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Income Taxes

9 Months Ended

Sep. 30, 2018

Income Tax Disclosure [Abstract]

Income Taxes

(9) Income Taxes

The Company’s effective tax rate was approximately 29% and 37% for the three months ended September 30, 2017 and 2018, respectively, and approximately 26% and 47% for the nine months ended September 30, 2017 and 2018, respectively. These rates differ from the federal statutory rate of 35% and 21% in 2017 and 2018, respectively, due to the effect of state income taxes and certain expenses that are not deductible for tax purposes. The effective tax rate for the nine months ended September 30, 2018 also reflects a $1.2 million increase due to the change in fair value of contingent consideration during that time period. The effective tax rate for the three and nine months ended September 30, 2017 also reflects a $1.0 million decrease and a $3.0 million decrease due to the change in fair value of contingent consideration during the three and nine months ended September 30, 2017, respectively.

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Related Party Transactions

9 Months Ended

Sep. 30, 2018

Related Party Transactions [Abstract]

Related Party Transactions

(10) Related Party Transactions

On June 18, 2018, the note receivable and accrued interest due from LN2 DB, LLC totaling $187,618 was converted to additional equity in LN2 DB, LLC and the Company contributed an additional $150,000 which maintained its ownership interest at approximately 20% of the outstanding units. The Company may be called upon to make additional pro rata cash contributions to LN2 DB, LLC in the future. LN2 DB, LLC is managed by Fowler Radio Group, LLC which is partially-owned by Mark S. Fowler, an independent director of the Company. In June 2018, George G. Beasley, Caroline Beasley, Bruce Beasley, Brian Beasley and other family members also invested in LN2 DB, LLC under a recapitalization plan.

On May 3, 2018, the Company entered into an agreement to lease a radio tower for one radio station in Tampa, FL from Beasley Family Towers, LLC, which is partially held by a trust for the benefit of Caroline Beasley, Bruce G. Beasley, Brian E. Beasley and other family members of George G. Beasley and partially owned directly by Caroline Beasley, Bruce G. Beasley, Brian E. Beasley and other family members. The lease agreement requires monthly payments of $11,000 and expires on December 31, 2027 with an option to renew for four periods of five years each.

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Financial Instruments

9 Months Ended

Sep. 30, 2018

Investments, All Other Investments [Abstract]

Financial Instruments

(11) Financial Instruments

The carrying amount of the Company’s financial instruments including cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the short term nature of these financial instruments.

The carrying amount of the Company’s long-term debt, including the term loan, the revolving credit facility, capital lease obligations and current installments, as of September 30, 2018 was $253.6 million which approximated fair value based on current market interest rates. The carrying amount of the Company’s term loan as of December 31, 2017 was $225.6 million which approximated fair value based on current market interest rates.

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Recent Accounting Pronouncements (Policies)

9 Months Ended

Sep. 30, 2018

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Pronouncements

In February 2016, the FASB issued guidance to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. There continues to be a differentiation between finance leases and operating leases, however lease assets and lease liabilities arising from operating leases should now be recognized in the statement of financial position. New disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. In 2018, the FASB issued several updates to address certain practical expedients, codification improvements, and targeted improvements to the original guidance. The new guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is in the final stages of assessment of the new guidance but expects it to result in (i) a significant increase in assets due to the recognition of right-of-use assets on the balance sheet and (ii) a significant increase in liabilities due to the recognition of lease liabilities on the balance sheet, however the amount of these increases will not be quantified until closer to the adoption date. The Company’s initial assessment, which is subject to change, is that the new guidance is not expected to have a significant impact on the statement of comprehensive income.

In May 2014, the FASB issued guidance to clarify the principles for recognizing revenue. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides a comprehensive framework for revenue recognition that supersedes current general revenue guidance and most industry-specific guidance. In addition, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. In 2016, the FASB issued several updates to address implementation issues and to clarify guidance for principal versus agent considerations and identifying performance obligations and licensing. The Company adopted the new guidance on January 1, 2018, using the modified retrospective method, with no impact on its financial statements. The cumulative effect of initially applying the new guidance had no impact on the opening balance of retained earnings as of January 1, 2018. There was no impact on the condensed consolidated balance sheet as of September 30, 2018 or on the condensed consolidated statements of comprehensive income for the three and nine months ended September 30, 2018. The comparative information has not been restated and continues to be reported under the accounting guidance in effect for that period. The Company does not expect the new guidance to have a material impact on its financial statements in future periods.

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Acquisitions and Dispositions (Tables)

9 Months Ended

Sep. 30, 2018

Summary of Pro forma Information

The following unaudited pro forma information for the three and nine months ended September 30, 2017 and 2018 assumes that the acquisitions and dispositions had occurred on January 1, 2017. This unaudited pro forma information has been prepared based on estimates and assumptions, which management believes are reasonable, and are not necessarily indicative of what would have occurred had the acquisition been completed on January 1, 2017 or of results that may occur in the future.

	Three months ended September 30,				Nine months ended September 30,
	2017		2018		2017		2018
Net revenue	$	67,354,259	$	65,631,709	$	193,482,282	$	187,926,182
Operating income		13,816,564		10,555,269		32,834,524		28,781,994
Net income		5,097,542		3,274,153		10,200,662		10,086,885
Basic net income per share		0.18		0.12		0.37		0.37
Diluted net income per share		0.18		0.12		0.37		0.36

WXTU-FM [Member]

Schedule of Purchase Price Allocation

The purchase price allocation is summarized as follows:

Property and equipment	$	357,734
FCC broadcasting license		27,346,200
Goodwill		10,102,183
Other intangibles		193,883
	$	38,000,000

Schedule of Assumptions Used in Valuation of FCC Broadcasting Licenses

The key assumptions used in the valuation of the FCC broadcasting licenses are as follows:

Revenue growth rates	0.6% - 1.3%
Market revenue shares at maturity	5.4%
Operating income margins at maturity	30.5%
Discount rate	9.0%

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Long-Term Debt (Tables)

9 Months Ended

Sep. 30, 2018

Debt Disclosure [Abstract]

Summary of Long-Term Debt

Long-term debt is comprised of the following:

	December 31, 2017			September 30, 2018
Term loan	$	225,000,000		$	253,000,000
Revolving credit facility		—			—
Capital lease obligations		630,874			582,859
		225,630,874			253,582,859
Less unamortized debt issuance costs		(10,850,972	)		(9,707,463	)
		214,779,902			243,875,396
Less current installments		(2,314,020	)		(66,331	)
	$	212,465,882		$	243,809,065

Scheduled Repayments of Credit Facility and Capital Lease Obligations

The aggregate scheduled principal repayments of the credit facility and capital lease obligations for the remainder of 2018, the next four years and thereafter are as follows:

2018	$	16,005
2019		67,101
2020		633,116
2021		2,684,940
2022		2,614,572
Thereafter		247,567,125
Total	$	253,582,859

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Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2018

Equity [Abstract]

Schedule of Changes in Stockholders Equity

The changes in stockholders’ equity for the three and nine months ended September 30, 2017 and 2018 are as follows:

	Three months ended September 30,						Nine months ended September 30,
	2017			2018			2017			2018
Beginning balance	$	211,719,400		$	272,195,359		$	202,491,623		$	286,166,200
Issuance of common stock		—			29,888			—			29,888
Stock-based compensation		541,982			457,454			1,513,677			1,778,630
Purchase of treasury stock		(28,408	)		(17,093	)		(506,410	)		(13,600,895	)
Net income		6,070,204			2,631,776			17,462,221			4,389,196
Cash dividends		(1,286,010	)		(1,367,761	)		(3,857,060	)		(4,102,131	)
Other comprehensive loss		(1,180	)		—			(88,063	)		(731,265	)
Ending balance	$	217,015,988		$	273,929,623		$	217,015,988		$	273,929,623

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Revenue (Tables)

9 Months Ended

Sep. 30, 2018

Revenue from Contract with Customer [Abstract]

Composition of Revenue

Revenue is comprised of the following:

	Three months ended September 30,				Nine months ended September 30,
	2017		2018		2017		2018
Commercial advertising	$	52,162,713	$	56,644,127	$	154,527,033	$	157,761,002
Digital advertising		3,311,548		3,496,136		9,711,397		10,826,473
Other		3,427,789		5,006,817		9,417,585		13,338,528
	$	58,902,050	$	65,147,080	$	173,656,015	$	181,926,003

Deferred Revenue

	December 31, 2017		September 30, 2018
Deferred revenue	$	1,893,508	$	2,718,519

	Three months ended September 30,				Nine months ended September 30,
	2017		2018		2017		2018
Losses on receivables	$	354,814	$	1,845,022	$	1,193,593	$	2,259,136

Trade Sale Revenue

Commercial advertising includes revenue from the sale or trade of aired commercial spots to advertisers directly or through national, regional or local advertising agencies. Each commercial spot is considered a performance obligation. Revenue is recognized when the commercial spots have aired. Trade sales are recorded at the estimated fair value of the goods or services received. If commercial spots are aired before the goods or services are received then a trade sales receivable is recorded. If goods or services are received before the commercial spots are aired then a trade sales payable is recorded.

	December 31, 2017		September 30, 2018
Trade sales receivable	$	1,550,172	$	1,563,809
Trade sales payable		1,276,170		1,315,712

	Three months ended September 30,				Nine months ended September 30,
	2017		2018		2017		2018
Trade sales revenue	$	2,144,090	$	2,790,888	$	6,916,643	$	6,409,976

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Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Restricted Stock Units and Restricted Stock Activity

A summary of restricted stock unit activity is presented below:

	Restricted Stock Units			Weighted- Average Grant-Date Fair Value
Unvested as of July 1, 2018		499,335		$	10.57
Granted		48,444			6.66
Vested		1,143			12.27
Forfeited		(4,500	)		10.65
Unvested as of September 30, 2018		544,422		$	9.57

A summary of restricted stock activity is presented below:

	Shares			Weighted- Average Grant-Date Fair Value
Unvested as of July 1, 2018		156,786		$	6.54
Granted		—			—
Vested		(7,500	)		4.90
Forfeited		(24,286	)		5.51
Unvested as of September 30, 2018		125,000		$	6.85

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Acquisitions and Dispositions - Additional Information (Detail) - USD ($)							3 Months Ended			9 Months Ended
	Sep. 27, 2018	Mar. 15, 2018	Dec. 19, 2017	May 01, 2017	Jan. 06, 2017	Nov. 01, 2016	Sep. 30, 2018	Jun. 30, 2017	Mar. 31, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017	Feb. 27, 2017
Business Acquisition [Line Items]
Adjustment of operating loss carryforwards recognized in Income tax expense							$ 200,000			$ 200,000
Proceeds from sale assets held for sale				$ 11,000,000	$ 24,000,000
Loss on dispositions, net									$ 300,000		$ 3,707,993
Translator license and equipment received as consideration				$ 300,000							$ 332,000
Asset purchase agreement, cash purchase price										39,520,000
Goodwill deductible for tax							$ 10,100,000			10,100,000
Disposal Group, Held-for-sale, Not Discontinued Operations [Member]
Business Acquisition [Line Items]
Gain on disposition								$ 4,000,000
Greater Media Inc. [Member]
Business Acquisition [Line Items]
Merger agreement date						Nov. 01, 2016
Business acquisition, sales price						$ 28,000,000							$ 28,000,000
Business acquisition, number of shares expected to be returned						650,759
Business acquisition fair value of shares returned		$ 4,800,000				$ 3,400,000						$ 6,300,000
Estimate of net operating loss carry forwards										$ 3,600,000
Greater Media Inc. [Member] | Treasury Stock [Member]
Business Acquisition [Line Items]
Business acquisition, number of shares expected to be returned		470,480
Greater Media Inc. [Member] | Shares Released from Escrow [Member]
Business Acquisition [Line Items]
Fair value of shares forfeited in escrow		$ 8,800,000										$ 11,600,000
Greater Media Inc. [Member] | Shares Released from Escrow [Member] | Treasury Stock [Member]
Business Acquisition [Line Items]
Business acquisition, number of shares expected to be forfeited and recorded in treasury stock		867,679
Greater Media Inc. [Member] | Class A Common Stock [Member] | Common Stock to be Held in Escrow [Member]
Business Acquisition [Line Items]
Number of shares issuable upon acquisition						867,679
Value of shares issuable upon acquisition						$ 4,200,000
Greater Media Inc. [Member] | Class A Common Stock [Member] | Shares Released from Escrow [Member]
Business Acquisition [Line Items]
Number of shares issuable upon acquisition						189,915
Value of shares issuable upon acquisition						$ 900,000
Fair value of shares forfeited in escrow						$ 3,300,000
CBS Radio Stations Inc., Entercom Boston LLC and The Entercom Divestiture Trust [Member]
Business Acquisition [Line Items]
Asset purchase agreement, cash purchase price			$ 12,000,000
Business acquisition partially financed by borrowings			6,000,000
Business acquisition partially funded in cash			$ 6,000,000
WXTU-FM [Member]
Business Acquisition [Line Items]
Merger agreement date	Sep. 27, 2018
Asset purchase agreement, cash purchase price	$ 38,000,000
Business acquisition partially financed by borrowings	35,000,000
Business acquisition partially funded in cash	3,000,000
Business acquisition,transaction expenses	$ 100,000

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Acquisitions and Dispositions - Schedule of Purchase Price Allocation (Detail) - USD ($)	Sep. 30, 2018	Sep. 27, 2018	Dec. 31, 2017
Business Acquisition [Line Items]
Goodwill	$ 25,377,447		$ 15,275,264
WXTU-FM [Member]
Business Acquisition [Line Items]
Property and equipment		$ 357,734
FCC broadcasting license		27,346,200
Goodwill		10,102,183
Other intangibles		193,883
Net assets acquired		$ 38,000,000

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Acquisitions and Dispositions - Schedule of Assumptions Used in Valuation of FCC Broadcasting Licenses (Detail) - WXTU-FM [Member]	9 Months Ended
	Sep. 30, 2018
Fair Value Inputs Asset Quantitative Information [Line Items]
Market revenue shares at maturity	5.40%
Operating income margins at maturity	30.50%
Measurement Input, Discount Rate [Member]
Fair Value Inputs Asset Quantitative Information [Line Items]
Fair value assumptions inputs rate	9.00%
Minimum [Member] | Measurement Input, Long-term Revenue Growth Rate [Member]
Fair Value Inputs Asset Quantitative Information [Line Items]
Fair value assumptions inputs rate	0.60%
Maximum [Member] | Measurement Input, Long-term Revenue Growth Rate [Member]
Fair Value Inputs Asset Quantitative Information [Line Items]
Fair value assumptions inputs rate	1.30%

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Acquisitions and Dispositions - Summary of Pro forma Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Business Combination Increase Decrease To Reflect Liabilities Acquired At Fair Value [Abstract]
Net revenue	$ 65,631,709	$ 67,354,259	$ 187,926,182	$ 193,482,282
Operating income	10,555,269	13,816,564	28,781,994	32,834,524
Net income	$ 3,274,153	$ 5,097,542	$ 10,086,885	$ 10,200,662
Basic net income per share	$ 0.12	$ 0.18	$ 0.37	$ 0.37
Diluted net income per share	$ 0.12	$ 0.18	$ 0.36	$ 0.37

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Long-Term Debt - Summary of Long-Term Debt (Detail) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Line of Credit Facility [Line Items]
Capital lease obligations	$ 582,859	$ 630,874
Long-term debt, including capital lease obligations	253,582,859	225,630,874
Less unamortized debt issuance costs	(9,707,463)	(10,850,972)
Long-term debt	243,875,396	214,779,902
Long-term debt	243,875,396	214,779,902
Less current installments	(66,331)	(2,314,020)
Long-term debt, net of current portion	243,809,065	212,465,882
Term Loan [Member]
Line of Credit Facility [Line Items]
Long-term debt	253,000,000	225,000,000
Revolving Credit Loan [Member]
Line of Credit Facility [Line Items]
Revolving credit facility	$ 0	$ 0

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Long-Term Debt - Additional Information (Detail)	3 Months Ended	9 Months Ended
	Sep. 30, 2018 USD ($)	Sep. 30, 2018 USD ($)	Sep. 27, 2018 USD ($)	Dec. 31, 2017 USD ($)
Line of Credit Facility [Line Items]
Loss on modification of long-term debt	$ (281,021)	$ (281,021)
Term Loan [Member]
Line of Credit Facility [Line Items]
Long-term debt	$ 253,000,000	$ 253,000,000		$ 225,000,000
Revolving credit loan and term loan carried interest	6.20%	6.20%		5.50%
Revolving credit facility and term loan maturity date		Nov. 01, 2023
Additional borrowings term loan			$ 35,000,000
Term Loan [Member] | Floor Rate [Member]
Line of Credit Facility [Line Items]
Term loan facility interest rate		1.00%
Revolving Credit Loan [Member]
Line of Credit Facility [Line Items]
Revolving credit facility maximum commitment	$ 20,000,000	$ 20,000,000		$ 20,000,000
Remaining commitments under the revolving credit loan facility	$ 20,000,000	$ 20,000,000
Revolving credit loan and term loan carried interest	6.20%	6.20%		5.50%
Revolving credit facility and term loan maturity date		Nov. 17, 2022
June 30, 2018 through December 31, 2018 [Member] | First Mortgage [Member] | Maximum [Member]
Line of Credit Facility [Line Items]
Long-term debt covenants aggregate leverage ratio		6.0
March 31, 2019 through December 31, 2019 [Member] | First Mortgage [Member] | Maximum [Member]
Line of Credit Facility [Line Items]
Long-term debt covenants aggregate leverage ratio		5.75
March 31, 2020 and thereafter [Member] | First Mortgage [Member] | Maximum [Member]
Line of Credit Facility [Line Items]
Long-term debt covenants aggregate leverage ratio		5.25
Existing Credit Agreement [Member]
Line of Credit Facility [Line Items]
Long-term debt	$ 253,000,000	$ 253,000,000
Mandatory prepayments of consolidated excess cash flow due period		95 days
Mandatory prepayments of consolidated excess cash flow required by existing credit agreement		Commencing with the year ending December 31, 2018, the credit agreement requires mandatory prepayments equal to 50% of Excess Cash Flow (as defined in the credit agreement) when the Company's Total Leverage Ratio (as defined in the credit agreement) is greater than 3.5x; mandatory prepayments equal to 25% of Excess Cash Flow when the Total Leverage Ratio is less than or equal to 3.5x but greater than 3.0x; and no mandatory prepayments when the Total Leverage Ratio is less than or equal to 3.0x.
Existing Credit Agreement [Member] | Leverage Ratio Greater than 3.5 Times [Member]
Line of Credit Facility [Line Items]
Mandatory prepayments of excess cash flow	50.00%	50.00%
Existing Credit Agreement [Member] | Leverage Ratio Less than or Equal To 3.5 Times and Greater than 3.0 Times [Member]
Line of Credit Facility [Line Items]
Mandatory prepayments of excess cash flow	25.00%	25.00%
Existing Credit Agreement [Member] | Leverage Ratio Less than or Equal to 3.0 Times [Member]
Line of Credit Facility [Line Items]
Mandatory prepayments of excess cash flow	0.00%	0.00%
New Credit Agreement [Member] | LIBOR [Member]
Line of Credit Facility [Line Items]
Credit facility interest rate margins		4.00%
New Credit Agreement [Member] | Base Rate [Member]
Line of Credit Facility [Line Items]
Credit facility interest rate margins		3.00%

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Long-Term Debt - Scheduled Repayments of Credit Facility and Capital Lease Obligations (Detail) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Debt Disclosure [Abstract]
2018	$ 16,005
2019	67,101
2020	633,116
2021	2,684,940
2022	2,614,572
Thereafter	247,567,125
Total	$ 253,582,859	$ 225,630,874

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Stockholders' Equity - Schedule of Changes in Stockholders Equity (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Equity [Abstract]
Beginning balance	$ 272,195,359	$ 211,719,400	$ 286,166,200	$ 202,491,623
Issuance of common stock	29,888		29,888
Stock-based compensation	457,454	541,982	1,778,630	1,513,677
Purchase of treasury stock	(17,093)	(28,408)	(13,600,895)	(506,410)
Net income	2,631,776	6,070,204	4,389,196	17,462,221
Cash dividends	(1,367,761)	(1,286,010)	(4,102,131)	(3,857,060)
Other comprehensive loss		(1,180)	(731,265)	(88,063)
Ending balance	$ 273,929,623	$ 217,015,988	$ 273,929,623	$ 217,015,988

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Revenue - Composition of Revenue (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Disaggregation of Revenue [Line Items]
Net revenue	$ 65,147,080	$ 58,902,050	$ 181,926,003	$ 173,656,015
Commercial Advertising [Member]
Disaggregation of Revenue [Line Items]
Net revenue	56,644,127	52,162,713	157,761,002	154,527,033
Digital Advertising [Member]
Disaggregation of Revenue [Line Items]
Net revenue	3,496,136	3,311,548	10,826,473	9,711,397
Other [Member]
Disaggregation of Revenue [Line Items]
Net revenue	$ 5,006,817	$ 3,427,789	$ 13,338,528	$ 9,417,585

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Revenue - Deferred Revenue (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Revenue from Contract with Customer [Abstract]
Deferred revenue	$ 2,718,519		$ 2,718,519		$ 1,893,508
Losses on receivables	$ 1,845,022	$ 354,814	$ 2,259,136	$ 1,193,593

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Revenue - Trade Sale Revenue (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Revenue from Contract with Customer [Abstract]
Trade sales receivable	$ 1,563,809		$ 1,563,809		$ 1,550,172
Trade sales payable	1,315,712		1,315,712		$ 1,276,170
Trade sales revenue	$ 2,790,888	$ 2,144,090	$ 6,409,976	$ 6,916,643

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Employee Benefit Plans - Additional Information (Detail) - Pension Plan [Member] - USD ($) $ in Millions	1 Months Ended	9 Months Ended
	Jan. 31, 2018	Sep. 30, 2018
Defined Contribution Plan Disclosure [Line Items]
Pension plan termination date		May 31, 2017
Payments to acquire annuities	$ 52.0
Corporate General and Administrative Expenses [Member]
Defined Contribution Plan Disclosure [Line Items]
Recognized gain due to termination		$ 1.0

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Stock-Based Compensation - Additional Information (Detail) - 2007 Plan [Member] $ in Millions	9 Months Ended
	Sep. 30, 2018 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost for restricted stock granted | $	$ 4.8
Cost expected to be recognized over a weighted-average period	2 years 1 month 6 days
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units and restricted stock awards, vest, period	1 year
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units and restricted stock awards, vest, period	5 years
Class A Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized | shares	7,500,000

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Stock-Based Compensation - Restricted Stock Units and Restricted Stock Activity (Detail) - 2007 Plan [Member]	9 Months Ended
	Sep. 30, 2018 $ / shares shares
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested Shares, Beginning Balance | shares	499,335
Granted, Shares | shares	48,444
Vested, Shares | shares	1,143
Forfeited, Shares | shares	(4,500)
Unvested Shares, Ending Balance | shares	544,422
Unvested, Weighted-Average Grant-Date Fair Value, Beginning Balance | $ / shares	$ 10.57
Granted, Weighted-Average Grant-Date Fair Value | $ / shares	6.66
Vested, Weighted-Average Grant-Date Fair Value | $ / shares	12.27
Forfeited, Weighted-Average Grant-Date Fair Value | $ / shares	10.65
Unvested, Weighted-Average Grant-Date Fair Value, Ending Balance | $ / shares	$ 9.57
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested Shares, Beginning Balance | shares	156,786
Granted, Shares | shares	0
Vested, Shares | shares	7,500
Forfeited, Shares | shares	(24,286)
Unvested Shares, Ending Balance | shares	125,000
Unvested, Weighted-Average Grant-Date Fair Value, Beginning Balance | $ / shares	$ 6.54
Granted, Weighted-Average Grant-Date Fair Value | $ / shares	0.00
Vested, Weighted-Average Grant-Date Fair Value | $ / shares	4.90
Forfeited, Weighted-Average Grant-Date Fair Value | $ / shares	5.51
Unvested, Weighted-Average Grant-Date Fair Value, Ending Balance | $ / shares	$ 6.85

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Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Effective tax rate	37.00%	29.00%	47.00%	26.00%
Federal statutory rate			21.00%		35.00%
Increase (decrease) in income tax due to change in fair value of contingent consideration	$ 1.2	$ (1.0)		$ (3.0)

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Related Party Transactions - Additional Information (Detail)	Jun. 18, 2018 USD ($)	May 03, 2018 USD ($) Renewals Radio_Stations	Sep. 30, 2018 USD ($)
Related Party Transaction [Line Items]
Conversion of note receivable and accrued interest to equity investment			$ 187,618
LN2 DB, LLC [Member]
Related Party Transaction [Line Items]
Conversion of note receivable and accrued interest to equity investment	$ 187,618
Additional contribution to related party	$ 150,000
Percentage of outstanding units ownership interest in Investee	20.00%
Beasley Family Towers Inc [Member]
Related Party Transaction [Line Items]
Lease agreement required monthly payments		$ 11,000
Number of radio towers leased for radio stations under separate lease agreements | Radio_Stations		1
Lease agreement expiration date		Dec. 31, 2027
Lease agreement, number of renewals | Renewals		4
Lease agreement, renewal period		5 years

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Financial Instruments - Additional Information (Detail) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Fair Value Of Financial Instruments [Line Items]
Long term debt, including capital lease obligations and current installments	$ 253,582,859	$ 225,630,874
Term Loan [Member]
Fair Value Of Financial Instruments [Line Items]
Long-term debt	$ 253,000,000	$ 225,000,000