Who owns Beasley Broadcast?
As of June 2017, the company owned 63 stations under the Beasley Media Group name....Beasley Broadcast Group.TypePublicHeadquartersNaples, Florida, United StatesKey peopleCaroline Beasley (CEO) Bruce G. Beasley (President, COO, Director) Mark S. Fowler (Director)ProductsRadio StationsRevenue$262 million (2019) $257 million (2018)9 more rows
Where is Beasley media group located?
After moving the corporate headquarters to Naples, Florida, in 1988, Beasley Broadcast Group took another pivotal step by entering one of the nation's top radio revenue markets through the purchase of KRTH-AM/FM in Los Angeles.
Who founded Beasley media group?
George G. BeasleyBeasley Media Group, Inc. is a subsidiary of Beasley Broadcast Group, Inc. (NASDAQ: BBGI), which was founded in 1961 by George G. Beasley. Today, Beasley Broadcast Group owns and operates 69 stations (50 FM and 19 AM) in 16 large-and mid-size markets in the United States.
Who owns WMMR?
Greater MediaWMMR / OwnerGreater Media, Inc., known as Greater Media, was an American media company that specialized in radio stations. The markets where they owned radio stations included Boston, Detroit, Philadelphia, Charlotte, and the state of New Jersey. Wikipedia
Shares of the radio broadcaster sold off as the company priced its stock offering
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What happened
Shares of Beasley Broadcast Group Inc ( NASDAQ:BBGI) were tumbling for the second day in a row after the company announced a stock offering following last week's acquisition of a Philadelphia radio station for $38 million in cash. Today's slide came as the company priced its offering at $7.50, significantly below yesterday's closing price at $8.90.
So what
Today's sell-off comes after the stock lost 16% yesterday as Beasley said the company would sell 1,305,000 in a secondary offering. However, in today's press release the company said that only current shareholders were selling the stock, meaning it won't be dilutive.
Now what
Beasley's move follows a pattern among media companies of consolidation, as the broadcasting business has grown more difficult in the face of competition from streaming channels like Netflix and Spotify. Making acquisitions helps businesses build scale and is often followed by cost-cutting.
What Risk Does Debt Bring?
Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing.
What Is Beasley Broadcast Group's Debt?
As you can see below, Beasley Broadcast Group had US$258.3m of debt, at December 2020, which is about the same as the year before. You can click the chart for greater detail. However, because it has a cash reserve of US$20.8m, its net debt is less, at about US$237.6m.
How Healthy Is Beasley Broadcast Group's Balance Sheet?
Zooming in on the latest balance sheet data, we can see that Beasley Broadcast Group had liabilities of US$40.5m due within 12 months and liabilities of US$431.1m due beyond that. On the other hand, it had cash of US$20.8m and US$47.4m worth of receivables due within a year.
Our View
To be frank both Beasley Broadcast Group's EBIT growth rate and its track record of staying on top of its total liabilities make us rather uncomfortable with its debt levels. But at least its conversion of EBIT to free cash flow is not so bad.
How Does Total Compensation For Barbara Beasley Compare With Other Companies In The Industry?
Our data indicates that Beasley Broadcast Group, Inc. has a market capitalization of US$79m, and total annual CEO compensation was reported as US$2.0m for the year to December 2020. Notably, that's an increase of 13% over the year before.
A Look at Beasley Broadcast Group, Inc.'s Growth Numbers
Over the last three years, Beasley Broadcast Group, Inc. has shrunk its earnings per share by 120% per year. Its revenue is down 25% over the previous year.
Has Beasley Broadcast Group, Inc. Been A Good Investment?
With a total shareholder return of -71% over three years, Beasley Broadcast Group, Inc. shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.
To Conclude..
Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.
