QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State of Incorporation) |
(I.R.S. Employer Identification Number) |
Title of Each Class |
Trading Symbol |
Name of Each Exchange on which Registered | ||
Large accelerated filer |
☐ |
Accelerated filer |
☐ | |||
☐ | Smaller reporting company | |||||
Emerging growth company |
December 31, 2021 |
March 31, 2022 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
$ | $ | ||||||
Accounts receivable, less allowance for doubtful accounts of $ |
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Prepaid expenses |
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Other current assets |
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Total current assets |
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Property and equipment, net |
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Operating lease right-of-use |
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Finance lease right-of-use |
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FCC licenses |
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Goodwill |
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Other intangibles, net |
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Other assets |
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Total assets |
$ | $ | ||||||
LIABILITIES AND EQUITY |
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Current liabilities: |
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Accounts payable |
$ | $ | ||||||
Operating lease liabilities |
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Finance lease liabilities |
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Other current liabilities |
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Total current liabilities |
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Due to related parties |
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Long-term debt, net of unamortized debt issuance costs |
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Operating lease liabilities |
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Deferred tax liabilities |
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Other long-term liabilities |
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Total liabilities |
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Commitments and contingencies |
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Stockholders’ equity: |
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Preferred stock, $ |
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Class A common stock, $ |
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Class B common stock, $ |
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Additional paid-in capital |
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Treasury stock, Class A common stock; |
( |
) | ( |
) | ||||
Retained earnings |
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Accumulated other comprehensive loss |
( |
) | ( |
) | ||||
Total stockholders’ equity |
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Total liabilities and stockholders’ equity |
$ | $ | ||||||
Three Months Ended March 31, |
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2021 |
2022 |
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Net revenue |
$ | $ | ||||||
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|
|
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Operating expenses: |
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Operating expenses (including stock-based compensation of $ |
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Corporate expenses (including stock-based compensation of $ |
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Depreciation and amortization |
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Impairment loss |
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Gain on disposition |
( |
) | ||||||
Other operating expense s |
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|
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Total operating expenses |
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|
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Operating loss |
( |
) | ( |
) | ||||
Non-operating income (expense): |
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Interest expense |
( |
) | ( |
) | ||||
Loss on extinguishment of long-term debt |
( |
) | ||||||
Other income, net |
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|
|
|
|
|||||
Loss before income taxes |
( |
) | ( |
) | ||||
Income tax benefit |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Loss before equity in earnings of unconsolidated affiliates |
( |
) | ( |
) | ||||
Equity in earnings of unconsolidated affiliates, net of tax |
( |
) | ( |
) | ||||
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|
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Net loss |
( |
) | ( |
) | ||||
Earnings attributable to noncontrolling interest |
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|
|
|||||
Net loss attributable to BBGI stockholders |
$ | ( |
) | ( |
) | |||
|
|
|
|
|||||
Net loss attributable to BBGI stockholders per Class A and Class B common share: |
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Basic and diluted |
$ | ( |
) | $ | ( |
) | ||
Weighted average shares outstanding: |
||||||||
Basic and diluted |
Three Months Ended March 31, |
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2021 |
2022 |
|||||||
Cash flows from operating activities: |
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Net loss |
$ | ( |
) | $ | ( |
) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: |
||||||||
Stock-based compensation |
||||||||
Provision for bad debts |
( |
) | ||||||
Depreciation and amortization |
||||||||
Impairment loss |
— | |||||||
Gain on disposition |
( |
) | ||||||
Amortization of loan fees |
||||||||
Loss on extinguishment of long-term debt |
||||||||
Deferred income taxes |
( |
) | ( |
) | ||||
Equity in earnings of unconsolidated affiliates |
||||||||
Change in operating assets and liabilities: |
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Accounts receivable |
||||||||
Prepaid expenses |
( |
) | ||||||
Other assets |
||||||||
Accounts payable |
( |
) | ||||||
Other liabilities |
( |
) | ||||||
Other operating activities |
( |
) | ||||||
|
|
|
|
|||||
Net cash provided by operating activities |
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|
|
|
|
|||||
Cash flows from investing activities: |
||||||||
Capital expenditures |
( |
) | ( |
) | ||||
Proceeds from dispositions |
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|
|
|
|||||
Net cash used in investing activities |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Cash flows from financing activities: |
||||||||
Issuance of debt |
||||||||
Payments on debt |
( |
) | ||||||
Payment of debt issuance costs |
( |
) | ||||||
Reduction of finance lease liabilities |
( |
) | ( |
) | ||||
Purchase of treasury stock |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net cash provided by (used in) financing activities |
( |
) | ||||||
|
|
|
|
|||||
Net increase (decrease) in cash and cash equivalents |
( |
) | ||||||
Cash and cash equivalents at beginning of period |
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|
|
|
|||||
Cash and cash equivalents at end of period |
$ | $ | ||||||
|
|
|
|
|||||
Cash paid for interest |
$ | $ | ||||||
|
|
|
|
|||||
Cash paid for income taxes |
$ | $ | ||||||
|
|
|
|
|||||
Supplemental disclosure of non-cash investing and financing activities: |
||||||||
Acquisition of noncontrolling interest |
$ | $ | ||||||
|
|
|
|
|||||
Extinguishment of trade sales payable |
$ | $ | ||||||
|
|
|
|
|||||
Class A common stock returned to treasury stock |
$ | $ | ||||||
|
|
|
|
December 31, 2021 |
March 31, 2022 |
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Secured notes |
$ | $ | ||||||
Less unamortized debt issuance costs |
( |
) | ( |
) | ||||
$ | $ | |||||||
Three months ended March 3 1 , |
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2021 |
2022 |
|||||||
Beginning balance |
$ | $ | ||||||
Stock-based compensation |
||||||||
Acquisition of noncontrolling interest |
( |
) | — | |||||
Purchase of treasury stock |
( |
) | ( |
) | ||||
Net loss |
( |
) | ( |
) | ||||
Elimination of noncontrolling interest |
— | |||||||
Ending balance |
$ | $ | ||||||
Three months ended March 31, |
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2021 |
2022 |
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Audio |
$ | $ | ||||||
Digital |
||||||||
Other |
||||||||
$ | $ | |||||||
December 31, 2021 |
March 31, 2022 |
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Deferred revenue |
$ | $ |
Three months ended March 31, |
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2021 |
2022 |
|||||||
Losses on receivables |
$ | $ |
December 31, 2021 |
March 31, 2022 |
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Trade sales receivable |
$ | $ | ||||||
Trade sales payable |
Three months ended March 31, |
||||||||
2021 |
2022 |
|||||||
Trade sales revenue |
$ | $ |
Units |
Weighted- Average Grant-Date Fair Value |
|||||||
Unvested as of January 1, 2022 |
$ | |||||||
Granted |
||||||||
Vested |
( |
) | ||||||
Forfeited |
( |
) | ||||||
Unvested as of March 31, 2022 |
$ | |||||||
Three months ended March 31, |
||||||||
2021 |
2022 |
|||||||
Net loss attributable to BBGI stockholders |
$ | ( |
) | $ | ( |
) | ||
Weighted-average shares outstanding: |
||||||||
Basic |
||||||||
Effect of dilutive restricted stock units and restricted stock |
||||||||
Diluted |
||||||||
Net loss attributable to BBGI stockholders per Class A and Class B common share – basic and diluted |
$ | ( |
) | $ | ( |
) | ||
Audio |
Digital |
Other |
Corporate |
Total |
||||||||||||||||
Net revenue |
$ | $ | $ | $ | — | $ | ||||||||||||||
Operating expenses |
— | |||||||||||||||||||
Corporate expenses |
— | — | — | |||||||||||||||||
Depreciation and amortization |
||||||||||||||||||||
Impairment loss |
— | — | — | |||||||||||||||||
Operating income (loss) |
$ | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | |||||||
Audio |
Digital |
Other |
Corporate |
Total |
||||||||||||||||
Capital expenditures |
$ |
$ |
$ |
$ |
$ |
Audio |
Digital |
Other |
Corporate |
Total |
||||||||||||||||
Net revenue |
$ | $ | $ | $ | — | $ | ||||||||||||||
Operating expenses |
— | |||||||||||||||||||
Corporate expenses |
— | — | — | |||||||||||||||||
Depreciation and amortization |
||||||||||||||||||||
Gain on disposition |
( |
) | — | — | — | ( |
) | |||||||||||||
Other operating expense s |
— | — | ||||||||||||||||||
Operating income (loss) |
$ | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | |||||||
Audio |
Digital |
Other |
Corporate |
Total |
||||||||||||||||
Capital expenditures |
$ |
$ |
— |
$ |
$ |
$ |
Audio |
Digital |
Other |
Corporate |
Total |
||||||||||||||||
Property and equipment, net |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||
FCC licenses |
— | — | — | |||||||||||||||||
Goodwill |
— | — | ||||||||||||||||||
Other intangibles, net |
— |
Audio |
Digital |
Other |
Corporate |
Total |
||||||||||||||||
Property and equipment, net |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||
FCC licenses |
— | — | — | |||||||||||||||||
Goodwill |
— | — | ||||||||||||||||||
Other intangibles, net |
— |
• |
the effects of the COVID-19 pandemic, including its potential effects on the economic environment and the Company’s results of operations, liquidity and financial condition, and the increased risk of impairments of the Company’s Federal Communications Commission (“FCC”) licenses and/or goodwill; |
• |
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 develop compelling and differentiated digital content, products and services; |
• |
audience acceptance of the Company’s content, particularly its radio programs; |
• |
the ability of the Company to respond to changes in technology, standards and services that affect the radio industry; |
• |
the Company’s dependence on federally issued licenses subject to extensive federal regulation; |
• |
actions by the FCC or new legislation affecting the radio industry; |
• |
increases to royalties the Company pays to copyright owners or the adoption of legislation requiring royalties to be paid to record labels and recording artists; |
• |
the Company’s dependence on selected market clusters of radio stations for a material portion of its net revenue; |
• | credit risk on the Company’s accounts receivable; |
• | the risk that the Company’s FCC licenses and/or goodwill could become impaired; |
• | 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; |
• | the potential effects of hurricanes on the Company’s corporate offices and radio stations; |
• | 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; |
• | the loss of key personnel; |
• | the Company’s ability to integrate acquired businesses and achieve fully the strategic and financial objectives related thereto and their impact on the Company’s financial condition and results of operations; |
• | the fact that the Company is controlled by the Beasley family, which creates difficulties for any attempt to gain control of the Company; and |
• | 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. |
• | a radio station’s audience share in the demographic groups targeted by advertisers as measured principally by periodic reports issued by Nielsen 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. |
• | it involves a significant level of estimation uncertainty; and |
• | changes in the estimate or different estimates that could have been selected have had or are reasonably likely to have a material impact on our results of operations or financial condition. |
Three Months ended March 31, |
Change |
|||||||||||||||
2021 |
2022 |
$ |
% |
|||||||||||||
Net revenue |
$ | 48,212,040 | $ | 55,720,268 | $ | 7,508,228 | 15.6 | % | ||||||||
Operating expenses |
42,967,871 | 49,830,436 | 6,862,565 | 16.0 | ||||||||||||
Corporate expenses |
3,905,289 | 4,233,460 | 328,171 | 8.4 | ||||||||||||
Impairment loss |
— | 1,857,226 | 1,857,226 | — | ||||||||||||
Other operating expenses |
1,100,000 | — | (1,100,000 | ) | (100.0 | ) | ||||||||||
Interest expense |
5,778,071 | 6,849,037 | 1,070,966 | 18.5 | ||||||||||||
Loss on extinguishment of long-term debt |
4,996,731 | — | (4,996,731 | ) | (100.0 | ) | ||||||||||
Income tax benefit |
2,602,886 | 5,849,318 | 3,246,432 | 124.7 | ||||||||||||
Net loss |
10,684,641 | 3,738,945 | (6,945,696 | ) | (65.0 | ) |
Three Months ended March 31, |
Change |
|||||||||||||||
2021 |
2022 |
$ |
% |
|||||||||||||
Net revenue |
||||||||||||||||
Audio |
$ | 41,729,602 | $ | 47,365,145 | $ | 5,635,543 | 13.5 | % | ||||||||
Digital |
5,763,728 | 7,808,250 | 2,044,522 | 35.5 | ||||||||||||
Other |
718,710 | 546,873 | (171,837 | ) | (23.9 | ) | ||||||||||
|
|
|
|
|
|
|||||||||||
$ | 48,212,040 | $ | 55,720,268 | $ | 7,508,228 | 15.6 | ||||||||||
|
|
|
|
|
|
|||||||||||
Operating expenses |
||||||||||||||||
Audio |
$ | 34,735,469 | $ | 40,683,812 | $ | 5,948,343 | 17.1 | % | ||||||||
Digital |
7,257,915 | 8,401,763 | 1,143,848 | 15.8 | ||||||||||||
Other |
974,487 | 744,861 | (229,626 | ) | (23.6 | ) | ||||||||||
|
|
|
|
|
|
|||||||||||
$ | 42,967,871 | $ | 49,830,436 | $ | 6,862,565 | 16.0 | ||||||||||
|
|
|
|
|
|
• | internally generated cash flow; |
• | additional borrowings or notes offerings, to the extent permitted under the Indenture governing our Notes; and |
• | additional equity offerings. |
Three Months ended March 31, |
||||||||
2021 |
2022 |
|||||||
Net cash provided by operating activities |
$ | 2,354,007 | $ | 735,374 | ||||
Net cash used in investing activities |
(666,768 | ) | (1,375,775 | ) | ||||
Net cash provided by (used in) financing activities |
33,763,934 | (31,544 | ) | |||||
|
|
|
|
|||||
Net increase (decrease) in cash and cash equivalents |
$ | 35,451,173 | $ | (671,945 | ) | |||
|
|
|
|
ITEM 3. |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. |
ITEM 4. |
CONTROLS AND PROCEDURES. |
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 |
||||||||||||
January 1 – 31, 2022 |
4,400 | $ | 1.85 | — | — | |||||||||||
February 1 – 28, 2022 |
— | — | — | — | ||||||||||||
March 1 – 31, 2022 |
11,807 | 1.82 | — | — | ||||||||||||
|
|
|||||||||||||||
Total |
16,207 | |||||||||||||||
|
|
Exhibit Number |
Description | |
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 – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL 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. | |
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
BEASLEY BROADCAST GROUP, INC. | ||||
Dated: May 9, 2022 | /s/ Caroline Beasley | |||
Name: | Caroline Beasley | |||
Title: | Chief Executive Officer (principal executive officer) | |||
Dated: May 9, 2022 | /s/ Marie Tedesco | |||
Name: | Marie Tedesco | |||
Title: | Chief Financial Officer (principal financial and accounting officer) |
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 registrants 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 registrants 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 registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants 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 registrants 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 registrants internal control over financial reporting. |
Dated: May 9, 2022 |
/s/ Caroline Beasley | |||||
Title: Chief Executive Officer |
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 registrants 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 registrants 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 registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants 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 registrants 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 registrants internal control over financial reporting. |
Dated: May 9, 2022 | /s/ Marie Tedesco | |||||
Title: Chief Financial Officer |
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 officers knowledge that:
(i) the accompanying Quarterly Report on Form 10-Q of the Company for the quarterly period ended March 31, 2022 (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: May 9, 2022 | /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.
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 officers knowledge that:
(i) the accompanying Quarterly Report on Form 10-Q of the Company for the quarterly period ended March 31, 2022 (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: May 9, 2022 | /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.
Consolidated Balance Sheets (Parenthetical) - USD ($) |
Mar. 31, 2022 |
Dec. 31, 2021 |
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Allowance for doubtful accounts | $ 1,510,422 | $ 1,720,477 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
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 | 16,292,646 | 16,249,312 |
Common stock, shares outstanding | 12,723,984 | 12,696,857 |
Treasury stock, Class A common stock shares | 3,568,662 | 3,552,455 |
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 |
Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) |
3 Months Ended | |
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Mar. 31, 2022 |
Mar. 31, 2021 |
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Stock-based compensation | $ 227,250 | $ 520,801 |
Station Operating Expenses [Member] | ||
Stock-based compensation | 78,223 | 70,931 |
Corporate General and Administrative Expenses [Member] | ||
Stock-based compensation | $ 149,027 | $ 449,870 |
Interim Financial Statements |
3 Months Ended |
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Mar. 31, 2022 | |
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, 2021. 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. |
Disposition |
3 Months Ended |
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Mar. 31, 2022 | |
Disposition [Abstract] | |
Disposition | (2) Disposition On April 1, 2022, the Company completed the sale of substantially all of the assets used in the operations of
WWNN-AM in West Palm Beach-Boca Raton, FL to a third party for $1.25 million in cash. As a result of the sale, the Company recorded an impairment loss of million related to the FCC license during the first quarter of 2022. |
Long-Term Debt |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | (3) Long-Term Debt Long-term debt is comprised of the following:
On February 2, 2021, the Company issued $300.0 million aggregate principal amount of 8.625% senior secured notes due on February 1, 2026 (the “Notes”) under an indenture dated February 2, 2021 (the “Indenture”). Interest on the Notes accrues at the rate of 8.625% per annum and is payable semiannually in arrears on February 1 and August 1 of each year. The Notes are secured on a first-lien priority basis by substantially all assets of the Company and its majority owned subsidiaries and are guaranteed jointly and severally by the Company and its majority owned subsidiaries. The Indenture contains restrictive covenants that limit the ability of the Company and its subsidiaries to, among other things, incur additional indebtedness, guarantee indebtedness or issue disqualified stock or, in the case of such subsidiaries, preferred stock; pay dividends on, repurchase or make distributions in respect of our capital stock or make other restricted payments; make certain investments or acquisitions; sell, transfer or otherwise convey certain assets; create liens; enter into agreements restricting certain subsidiaries’ ability to pay dividends or make other intercompany transfers; consolidate, merge, sell or otherwise dispose of all or substantially all of its assets; enter into transactions with affiliates; prepay certain kinds of indebtedness; and issue or sell stock of its subsidiaries. Prior to February 1, 2025, the Company will be subject to certain premiums, as defined in the Indenture, for optional or mandatory (upon certain contingent events) redemption of some or all of the Notes. In April 2022, the Company repurchased % of the principal amount. As a result of the repurchase, the Company recorded an aggregate gain on extinguishment of long-term debt of second quarter of 2022. |
Stockholders' Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | (4) Stockholders’ Equity The changes in stockholders’ equity are as follows:
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Net Revenue |
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Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Revenue | (5) Net Revenue Net revenue is comprised of the following:
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.
Audio revenue 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. Other revenue includes revenue from concerts, promotional events, talent fees and other miscellaneous items. Such revenue is generally recognized when the concert, promotional event, or talent services are completed.
Digital revenue 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. |
Stock-Based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | (6) 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 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:
As of March 31, 2022, there was $1.6 million of total unrecognized compensation cost for restricted stock units granted under the 2007 Plan. That cost is expected to be recognized over a weighted-average period of 2.2 years.
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Income Taxes |
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Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (7) Income Taxes The Company’s effective tax rate was 20% and 61% for the three months ended March 31, 2021 and 2022, respectively. These rates differ from the federal statutory rate of 21% due to the effect of state income taxes, certain
non-taxable income, and certain expenses that are not deductible for tax purposes. |
Earnings Per Share |
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Earnings per share | (8) Earnings Per Share Earnings per share calculation information is as follows:
The Company excluded the effect of restrictive stock units and restricted stock under the treasury stock method when reporting a net loss as the addition of shares was anti-dilutive. The number of shares excluded was 32,166 and 178,625 for the three months ended March 31, 2021 and 2022, respectively.
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Financial Instruments |
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Mar. 31, 2022 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments | (9) 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 estimated fair value of the Notes, based on available market information, was million as of December 31, 2021 and March 31, 2022, respectively. The Company used Level 2 measurements under the fair value measurement hierarchy to determine the estimated fair value of the Notes. |
Segment Information |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | (10) Segment Information The Company currently operates three operating segments (Audio, Digital, esports) and two reportable segments (Audio, Digital). The identification of segments is consistent with how the segments report to and are managed by the Company’s Chief Executive Officer (the Company’s Chief Operating Decision Maker). The Audio segment generates revenue primarily from the sale of commercial advertising to customers of the Company’s 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, and Wilmington, DE. The Digital segment generates revenue primarily from the sale of digital advertising to customers of the Company’s radio stations and other advertisers throughout the United States. Corporate includes general and administrative expenses and certain other income and expense items not allocated to the operating segments. Non-operating corporate items including interest expense and income taxes, are reported in the accompanying condensed consolidated statements of comprehensive loss. Reportable segment information for the three months ended March 31, 2022 is as follows:
Reportable segment information for the three months ended March 31, 2021 is as follows:
Reportable segment information as of March 31, 2022 is as follows:
Reportable segment information as of December 31, 2021 is as follows:
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Long-Term Debt (Tables) |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Long-Term Debt | Long-term debt is comprised of the following:
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Stockholders' Equity (Tables) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Stockholders Equity | The changes in stockholders’ equity are as follows:
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Net Revenue (Tables) |
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Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Composition of Revenue | Net revenue is comprised of the following:
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Deferred Revenue |
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Trade Sale Revenue |
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Stock-Based Compensation (Tables) |
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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:
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Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Income Per Share | Earnings per share calculation information is as follows:
|
Segment Information (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of reportable segment information | Reportable segment information for the three months ended March 31, 2022 is as follows:
Reportable segment information for the three months ended March 31, 2021 is as follows:
Reportable segment information as of March 31, 2022 is as follows:
Reportable segment information as of December 31, 2021 is as follows:
|
Disposition - Additional Information (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Business Acquisition [Line Items] | ||
Proceeds from dispositions | $ 0 | $ 362,500 |
Licensing Agreements [Member] | ||
Business Acquisition [Line Items] | ||
Loss on disposition | 1.9 | |
WWNNAM [Member] | West Palm Beach Boca Raton [Member] | ||
Business Acquisition [Line Items] | ||
Proceeds from dispositions | $ 1.25 |
Long-Term Debt - Summary of Long-Term Debt (Detail) - USD ($) |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Line of Credit Facility [Line Items] | ||
Less unamortized debt issuance costs | $ (5,829,897) | $ (6,210,108) |
Long-term debt, net of current portion | 294,170,103 | 293,789,892 |
Secured Notes [Member] | ||
Line of Credit Facility [Line Items] | ||
Total debt | $ 300,000,000 | $ 300,000,000 |
Long-Term Debt - Additional Information (Detail) - USD ($) |
1 Months Ended | 3 Months Ended | ||
---|---|---|---|---|
Apr. 30, 2022 |
Mar. 31, 2022 |
Mar. 31, 2021 |
Feb. 02, 2021 |
|
Long-Term Debt [Line Items] | ||||
Gain (Loss) on Extinguishment of Debt | $ 0 | $ (4,996,731) | ||
Promissory Note [Member] | ||||
Long-Term Debt [Line Items] | ||||
Debt Instrument Redemption Amount | $ 5,000,000.0 | |||
Debt instrument redeemed Percentage | 96.00% | |||
New Promissory Note [Member] | ||||
Long-Term Debt [Line Items] | ||||
Gain (Loss) on Extinguishment of Debt | $ 100,000 | |||
8.625% senior secured notes due on February 1, 2026 | ||||
Long-Term Debt [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 8.625% | |||
Debt instrument face value | $ 300,000,000.0 |
Stockholders' Equity - Schedule of Changes in Stockholders Equity (Detail) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Beginning balance | $ 263,082,298 | $ 267,101,820 |
Stock-based compensation | 227,250 | 520,801 |
Acquisition of noncontrolling interest | 0 | (4,490,130) |
Purchase of treasury stock | (29,599) | (784,902) |
Net loss | (3,738,945) | (10,684,641) |
Elimination of noncontrolling interest | 1,076,849 | |
Ending balance | $ 259,541,004 | $ 252,739,797 |
Net Revenue - Composition of Revenue (Detail) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 55,720,268 | $ 48,212,040 |
Audio [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 47,365,145 | 41,729,602 |
Digital [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 7,808,250 | 5,763,728 |
Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 546,873 | $ 718,710 |
Net Revenue - Deferred Revenue (Detail) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Dec. 31, 2021 |
|
Revenue from Contract with Customer [Abstract] | |||
Deferred revenue | $ 3,092,825 | $ 3,085,370 | |
Losses on receivables | $ 287,553 | $ 1,095,313 |
Net Revenue - Trade Sale Revenue (Detail) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Dec. 31, 2021 |
|
Revenue from Contract with Customer [Abstract] | |||
Trade sales receivable | $ 934,421 | $ 881,885 | |
Trade sales payable | 636,476 | $ 614,467 | |
Trade sales revenue | $ 1,372,573 | $ 929,597 |
Stock-Based Compensation - Additional Information (Detail) - 2007 Plan [Member] $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2022
USD ($)
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unrecognized compensation cost for restricted stock granted | $ | $ 1.6 |
Cost expected to be recognized over a weighted-average period | 2 years 2 months 12 days |
Class A Common Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares authorized | shares | 7,500,000 |
Stock-Based Compensation - Restricted Stock Units and Restricted Stock Activity (Detail) - 2007 Plan [Member] - Restricted Stock Units (RSUs) [Member] |
3 Months Ended |
---|---|
Mar. 31, 2022
$ / shares
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested Shares, Beginning Balance | shares | 940,834 |
Granted, Shares | shares | 26,316 |
Vested, Shares | shares | (43,334) |
Forfeited, Shares | shares | (5,000) |
Unvested Shares, Ending Balance | shares | 918,816 |
Unvested, Weighted-Average Grant-Date Fair Value, Beginning Balance | $ / shares | $ 2.77 |
Granted, Weighted-Average Grant-Date Fair Value | $ / shares | 1.90 |
Vested, Weighted-Average Grant-Date Fair Value | $ / shares | 2.63 |
Forfeited, Weighted-Average Grant-Date Fair Value | $ / shares | 2.85 |
Unvested, Weighted-Average Grant-Date Fair Value, Ending Balance | $ / shares | $ 2.75 |
Income Taxes - Additional Information (Detail) |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Federal statutory rate | 21.00% | |
Effective tax rate | 61.00% | 20.00% |
Earnings Per Share - Schedule of Net Income Per Share (Detail) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Earnings Per Share [Abstract] | ||
Net loss attributable to BBGI stockholders | $ (3,738,945) | $ (10,555,392) |
Weighted-average shares outstanding: | ||
Basic | 29,370,789 | 29,302,799 |
Effect of dilutive restricted stock units and restricted stock | 0 | 0 |
Diluted | 29,370,789 | 29,302,799 |
Net loss attributable to BBGI stockholders per Class A and Class B common share – basic and diluted | $ (0.13) | $ (0.36) |
Earnings Per Share - Additional information (Detail) - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Share-based Payment Arrangement [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from the computation of earnings per share | 178,625 | 32,166 |
Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions |
Mar. 31, 2022 |
Mar. 31, 2021 |
---|---|---|
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Of Financial Instruments [Line Items] | ||
Long-term debt | $ 284.3 | $ 295.9 |
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