Beasley Broadcast Group, Inc.

earnings call. Before proceeding, I would like to emphasize that today's conference and call and webcast will be contained forward-looking statements about our future performance and results of operations that involve risks and uncertainty described in the risk factors section of our most recent annual report on Form 10-K. Today's webcast will also contain on the discussion of certain non-GAAP financial measures within the meaning of Item 10 of Regulation S-K. A reconciliation of these non-GAAP measures with their most directly comparable financial measures calculated and presented in accordance with GAAP can be found in this morning's news announcement and on the company's website. I would like to remind listeners that following its completion, a replay of today's call can be accessed for five days on the company's website, www.bbgi.com. You can also find a copy of today's press release on the investors or press room sections of the site. At this time, I would like to turn the conference over to your host, Beasley Broadcast Group CEO, Caroline Beasley. Please go ahead.

Thank you, Calvin, and good morning, everyone. We appreciate you joining us to review our fourth quarter and full year results. 2024 was a pivotal year for Beasley. Through a combination of workforce realignment and technology-driven efficiencies, we delivered over $20 million in annualized savings. Additionally, our successful execution of strategic capital structure initiatives, including our exchange and new notes issuance, has significantly improved our leverage profile, extended maturities, and reduced financial risk, positioning Beasley to generate stronger free cash flow going forward. For the fourth quarter, total net revenue was 67.3 million, a 2.3% increase compared with Q4 of 2023. 8.3 million in political helped to offset weakness in national and local ad spend. We exceeded our full year expectations for political, delivering 12.1 million for the year, driven primarily by strong federal election spending in key battleground states. Same station revenue for the quarter grew 4.4%. Digital remains a critical growth engine, accounting for 17.1% of total revenue in Q4. While this represents a slight decline from 19.4% in Q3, it's important to note that total digital revenue increased sequentially from Q3 to Q4. The percentage decline is primarily due to the surge in political during the quarter, which impacted overall revenue mix. For the full year, digital revenue as a percentage of total revenue reached 19.4%, up from 18.4% in the prior year, reinforcing our continued momentum in scaling our digital offerings. On the national side, ex-political, revenue declined 4.9% in Q4, a meaningful improvement from the 16% decline in Q3. National represented 12.4% of total revenue for the quarter, down slightly from 12.7% in Q3. Looking ahead, we expect national to face additional pressure, particularly in sectors like auto and consumer goods, where proposed tariffs could lead to constrained consumer demand and more cautious advertising budgets. We are maintaining a disciplined approach to execution ensuring we maximize opportunities as market conditions evolve. Local over-the-air revenue declined 5.7% in Q4, reflect a broader market trend, while local direct revenue contracted by 5%. This was partially due to the strength of our political advertising performance, which led to inventory constraints across several of our key markets, limiting availability for local advertisers. As a result, local direct represented 54% of our total local business in Q4. That's down from 57% in Q3. We're actively pursuing strategies to strengthen direct relationships and deliver more customized, high-impact solutions. New business development was a headwind in Q4, with revenue from this category declining 12.8% year over year, reflecting cyclical shifts in ad spend. However, we see opportunities ahead. By leveraging data-driven audience insights, expanding our sales outreach, and enhancing our audience engagement, we are confident in our ability to rebuild momentum in this area. As advertisers seek greater precision in their marketing spend, we remain well-positioned to offer solutions that drive measurable ROI, even in a more cost-conscious environment. In summary, while the advertising landscape remains highly fluid, we are executing with discipline and focus. While we anticipate continued near-term pressure, we remain committed to navigating these changes proactively and ensuring we are well positioned for long-term growth. With that, I'll turn it over to Lauren for a deeper dive into our financial performance.

Thanks, Caroline. And good morning, everyone. As Caroline mentioned, fourth quarter total net revenue was $67.3 million. While the divestiture of the Wilmington station, the elimination of the outlaws and guaranteed digital, and a decline in national and local spot revenue created headwinds, these were more than offset by strong political revenue. For the full year 2024, total net revenue was $240 million. a 2.8% decline compared to full year 2023. On a same station basis, revenue for the full year was up 0.2%. As we break down revenue by category, consumer services remained our largest segment, accounting for 24.5% of total revenue. Despite broader category softness, Tampa and Detroit stood out as broad spots. generating a combined $0.8 million in incremental revenue. Retail accounted for 13.8% of total revenue, while entertainment represented 15.3%. Sports betting revenue for Q4 came in at $4.1 million, representing a $1.1 million decrease year over year. This decline reflects an industry-wide shift away from aggressive consumer acquisition strategies towards a more sustainable focus on customer retention and profitability. Operators are increasingly leveraging algorithms to identify and retain high-value players while minimizing exposure to high-frequency winners. While this shift has resulted in short-term softness in sports betting-related ad spend, We anticipate this trend to normalize over the coming year as the industry recalibrates its marketing strategies. Meanwhile, the auto sector remained relatively flat, but continued to take more share, rising to 9% of total revenue in Q4. A great spot for the quarter in the auto category was our import segment, which grew an impressive 115% year over year. However, The automotive industry is facing increasing uncertainty as manufacturers and dealers prepare for the financial impact of proposed tariffs. These anticipated tariffs could drive up consumer vehicle prices anywhere from $2,000 to $12,000 per unit, with vehicles under $30,000 expected to be the most impacted. As pricing pressure intensifies, automakers and dealers are reevaluating their marketing strategies. We are already seeing signs of advertiser pullback in the audit sector as industry players proactively adjust their budgets in response to these anticipated changes. While the long-term effects remain to be seen, we are closely monitoring the situation and working alongside our automotive partners to provide strategic advertising solutions that align with our evolving needs. Throughout 2024, we made significant progress in streamlining operations and optimizing our cost structure, setting the stage for improved profitability. These efforts have enhanced our operating leverage, allowing us to navigate a dynamic economic environment while maintaining our commitment to high quality service and content. Building on this momentum, We drove additional efficiencies in Q4. Station Operating Income, or SOI, came in at $14.1 million, up $4.5 million year-over-year, a 46% increase. Excluding non-recurring severance costs of $816,000, SOI would have been $14.9 million for the quarter. For the full year 2024, SOI totaled $38.5 million, roughly in line with fiscal year 2023, despite the impact of significant severance expenses incurred in 2024 as part of our broader cost realignment efforts. Adjusting for severance expenses in both years, SOI performance in fiscal year 2024 would have been $40.8 million compared with $39.5 million in fiscal year 2023. These results underscore our focus on long-term profit expansion, ensuring we remain well positioned for sustainable growth in 2025 and beyond. Turning to corporate expenses, these expenses for the fourth quarter totaled $4.7 million. This includes $0.7 million in non-recurring severance, joining bonus, and systems implementation costs, as we continue to realign our workforce and invest in technology to drive productivity. Excluding these non-recurring costs, corporate G&A was $4 million, reflecting a reduction in corporate expenses year over year. These reductions are part of our broader effort to streamline overhead while optimizing operations across the business. Operating income for the quarter came in at $7.6 million, holding steady year-over-year despite the absence of a one-time $6 million gain in Q4 of 2023 from the extinguishment of franchise fees related to the sale of the outlaws. This underscores the strength of our core operations and disciplined financial execution. For the full year, operating incomes totaled $13.1 million versus a loss of $82 million in 2023. Interest expense for the quarter was $3.5 million, or a reduction of $3.4 million year over year, as we continued to benefit from lower outstanding debt following the proactive deleveraging actions we took in 2023 and 2024. We ended the fourth quarter with total principal outstanding on our notes of $220 million, down significantly from the $267 million at the end of 2023. This ongoing debt reduction underscores our commitment to strengthening the balance sheet and enhancing long-term financial flexibility. EBITDA, as defined by our indentures for the fourth quarter, including adjustments for severance, non-cash stock-based compensation, property and franchise taxes, and other add-backs as detailed in our indentures, totaled $12.5 million. with full year lender EBITDA at $32.2 million. This represents a doubling of our Q4 lender EBITDA and a 35% improvement versus prior year for full year 2024, driven by the successful execution of our comprehensive cross-reduction initiatives, which helped mitigate revenue pressures. Capital expenditures for the quarter totaled $387,000, bringing year-to-date CapEx to $3 million, which is consistent with our efforts to prioritize essential investments while maintaining disciplined capital allocations. Cash on hand at the end of Q4 was $13.8 million, a decline compared to $27.8 million at the end of Q3, largely due to debt repayments and fees associated with our debt restructuring. Together, these actions position us with a leaner cost base ensuring our ability to invest in areas that drive long-term revenue growth while also enhancing our ability to generate free cash flow and reduce leverage over time. As we move into 2025, we remain laser-focused on strengthening our financial position. Despite the evolving macroeconomic landscape, we are executing the discipline, and our strategic initiatives continue to position us for long-term success. With that, I'll turn it back over to Caroline. Thank you, Lauren.