Beasley Broadcast Group Inc. reports profit drop

Brutal winter weather and a bigger tax bite cut quarterly profits for the Naples-based Beasley Broadcast Group Inc.

On Wednesday, Beasley reported net income of $700,000, or 3 cents a share, in the quarter ended March 31, down from net income of $2.4 million, or 11 cents a share, in the same quarter a year ago.

The radio company reported that its income tax expense increased by $1.3 million, or 128.8 percent, in the quarter compared to a year ago.

Net revenue was $2.4 million in the quarter, down from $2.8 million a year ago.

Revenue was constrained by harsh winter weather as retailers didn't spend on advertising to reach customers who were largely staying home, said Caroline Beasley, executive vice president and chief financial officer.

"Overall, we are disappointed with our first quarter revenue results," Beasley said.

Beasley operates 44 stations, 28 FM and 16 AM, in eleven large- and mid-size markets in the United States. The company owns four FMs and one AM in the Naples-Fort Myers market including: Sunny 106 WJPT-FM, B103.9 WXKB-FM, 96 K-Rock WRXK-FM, ESPN Radio 99.3 WWCN-FM and 770 AM ESPN Deportes WJBX-AM.

Additionally, "The Link," a modern adult contemporary format, can be heard through four FM translators at 96.5 and 98.1 in Lee County and 101.5 and 105.1 in Collier County.

The weather impact was especially noticeable in Philadelphia and in Augusta, Georgia, where ice storms damaged a broadcasting tower. Repairing it also added to the company's capital spending in the quarter.

"It really was a perfect storm, literally and figuratively," Beasley said.

About 60 percent of the company's revenues come from station clusters in Philadelphia, Las Vegas and Miami, its three largest markets, Beasley said. All three reported revenues lower than a year ago.

Revenue from the Southwest Florida stations were up for the quarter, with January revenues up "significantly," Beasley said.

Retail and auto advertising were both up in the market, even though they were down nationally. Restaurant advertising was down locally and nationally.

"This market is doing OK and January was the strongest month in the market," she said. "The radio market here has been more seasonal than before the Great Recession."

Beasley said the company's tax rates should stabilize through the rest of the year and political advertising will pick up later in the year.

Beasley operates 44 stations, 28 FM and 16 AM, located in eleven markets in the United States.

Beasley owns four FMs and one AM in the Naples-Fort Myers market

Beasley Facts

Company: Beasley Broadcast Group Inc.

Based: Naples

Stock: Beasley stock, which trades as BBGI on the Nasdaq exchange, closed Wednesday at $7.70 a share, down 11 cents or 1.4 percent, from Tuesday's close.