ANNUAL 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 or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
Title of Each Class |
Trading Symbol |
Name of Each Exchange on which Registered | ||
Class A |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
☒ | Smaller reporting company | |||||
Emerging growth company |
Page |
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Item 1. |
3 |
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Item 1A. |
9 |
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Item 1B. |
17 |
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Item 2. |
17 |
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Item 3. |
18 |
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Item 4. |
18 |
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Item 5. |
19 |
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Item 7. |
19 |
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Item 7A. |
28 |
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Item 8. |
29 |
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Item 9. |
52 |
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Item 9A. |
52 |
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Item 9B. |
53 |
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Item 9C. |
53 |
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Item 10. |
54 |
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Item 11. |
54 |
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Item 12. |
54 |
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Item 13. |
54 |
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Item 14. |
54 |
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Item 15. |
55 |
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Item 16. |
56 |
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57 |
ITEM 1. BUSINESS |
• | determines the particular frequencies, locations, operating powers and other technical parameters of radio stations; |
• | issues, renews, revokes, conditions and modifies radio station licenses; |
• | determines whether to approve changes in ownership or control of radio station licenses; |
• | regulates equipment used by radio stations; and |
• | adopts and implements regulations and policies that directly or indirectly affect the ownership, operation, program content and employment practices of radio stations. |
• | compliance with the various rules limiting common ownership of media properties in a given market; |
• | the character of the proposed licensee and those persons holding attributable interests in the licensee; and |
• | compliance with the Communications Act’s limitations on alien ownership as well as compliance with other FCC regulations and policies. |
• | in markets with 45 or more radio stations, ownership is limited to eight commercial radio stations, no more than five of which can be either AM or FM; |
• | in markets with 30 to 44 radio stations, ownership is limited to seven commercial radio stations, no more than four of which can be either AM or FM; |
• | in markets with 15 to 29 radio stations, ownership is limited to six commercial radio stations, no more than four of which can be either AM or FM; and |
• | in markets with 14 or fewer radio stations, ownership is limited to five commercial radio stations or no more than 50% of the market’s total, whichever is lower, and no more than three of which can be either AM or FM. |
• | changes in the FCC’s multiple-ownership rules and attribution policies; |
• | regulatory fees, spectrum use fees or other fees on FCC licenses; |
• | changes in laws with respect to foreign ownership of broadcast licenses; |
• | revisions to the FCC’s rules relating to political broadcasting, including proposals to give free airtime to candidates and other changes regarding political advertising rates, sponsorship disclosure and political file recordkeeping obligations; |
• | technical and frequency allocation matters; |
• | proposals to restrict or prohibit the advertising of beer, wine and other alcoholic beverages on the radio; |
• | proposals to restrict or prohibit the advertising of online casinos, online sports betting services and fantasy sports services; |
• | proposals to require radio broadcasters to pay royalties to musicians and record labels for the performance of music played on the stations; |
• | proposals to limit the tax deductibility of or impose sales tax on advertising expenses by advertisers; |
• | proposals to regulate or prohibit payments to stations by independent record promoters, record labels and others for the inclusion of specific content in broadcast programming; and |
• | proposals in legislation to strengthen protections against online infringement of intellectual property that would impose criminal penalties on content providers, including broadcasters, that fail to comply with legal requirements to file reports regarding internet streaming in a timely manner. |
ITEM 1A. |
RISK FACTORS |
• | shifts in population, demographics or audience preferences; |
• | increased competition for advertising revenues with other radio stations, broadcast and cable television, newspapers and magazines, outdoor advertising, direct mail, internet radio, satellite radio, smart phones, tablets, and other wireless media, the internet, social media, smart speakers and other forms of advertising; |
• | increased competition for advertising revenues from Amazon, Apple, Facebook and Google; and |
• | changes in government regulations and policies and actions of federal regulatory bodies, including the FCC, Internal Revenue Service, United States Department of Justice, and the Federal Trade Commission. |
• | economic conditions in the areas where our stations are located and in the nation as a whole; |
• | the popularity of the programming offered by our stations; |
• | changes in population, demographics or audience preferences in the areas where our stations are located; |
• | local and national advertising price fluctuations, which can be affected by the availability of programming, the popularity of programming, and the relative supply of and demand for commercial advertising; |
• | our competitors’ activities, including increased competition from other advertising-based mediums and new technologies; |
• | decisions by advertisers to withdraw or delay planned advertising expenditures for any reason; and |
• | other factors beyond our control. |
• | another radio station in a market was to convert its programming to a format similar to, and thereby compete more directly with, one of our radio stations; |
• | a new radio station was to adopt a comparable format or if an existing competitor were to improve its audience share; or |
• | a current or new advertising alternative increased its share of local or national advertising revenue. |
• | home and personal digital audio devices (e.g., smart phones, tablets, smart speakers); |
• | satellite delivered digital audio radio services that offer numerous programming channels; |
• | internet-based audio music services; |
• | audio programming by internet content providers, internet radio stations, cable systems, direct broadcast satellite systems, personal communications services and other digital audio broadcast formats; |
• | HD Radio, which provides multi-channel, multi-format digital radio services in the same bandwidth currently occupied by traditional AM and FM radio services; |
• | low power FM radio stations, which are non-commercial FM radio broadcast outlets that serve small, localized areas; |
• | portable digital devices and systems that permit users to listen to programming on a time-delayed basis and to fast-forward through programming and/or advertisements; and |
• | vehicles equipped with internet connectivity that increase the number of audio and video platforms available in vehicles (e.g., ATSC 3.0 technology). |
• | require us to dedicate a substantial portion of our cash flows from operations to debt service, thereby reducing the availability of cash flows for other purposes, including ongoing capital expenditures and future acquisitions; |
• | impair our ability to obtain additional financing for working capital, capital expenditures, acquisitions and general corporate or other purposes; |
• | limit our ability to compete, expand and make capital improvements; |
• | increase our vulnerability to economic downturns, limit our ability to withstand competitive pressures and reduce our flexibility in responding to changing business and economic conditions; and |
• | limit or prohibit our ability to pay dividends and make other distributions. |
• | integrating two unique business cultures, which may prove to be incompatible; |
• | consolidating corporate and administrative infrastructures and eliminating duplicative operations; |
• | the diversion of management’s attention from ongoing business concerns; |
• | unanticipated issues in integrating information technology, communications and other systems; |
• | costs or inefficiencies associated with integrating the operations of the combined company; and |
• | unforeseen expenses, liabilities or delays. |
Location |
Description |
Owned/Leased | ||
Atlanta, GA | Office space for radio stations | Third-party lease | ||
Augusta, GA | Office space for radio stations | Owned | ||
Land for office space | Related party lease | |||
Boca Raton, FL | Office space for radio station | Third-party lease |
Boston, MA | Office space for radio stations | Third-party lease | ||
Camden, NJ | Office space for radio station | Owned | ||
Land for office space | Related party lease | |||
Charlotte, NC | Office space for radio stations | Third-party lease | ||
Detroit, MI | Office space for radio stations | Owned | ||
Estero, FL | Office space for radio stations | Related party lease | ||
Fayetteville, NC | Office space for radio stations | Related party lease | ||
Las Vegas, NV | Office space for radio stations | Related party lease | ||
Middlesex, NJ | Office space for radio stations | Owned | ||
Monmouth, NJ | Office space for radio stations | Owned | ||
Morristown, NJ | Office space for radio stations | Owned | ||
Philadelphia, PA | Office space for radio stations | Third-party lease | ||
Tampa, FL | Office space for radio stations | Third-party lease | ||
Wilmington, DE | Office space for radio station | Third party lease |
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 That May Yet Be Purchased Under the Program |
||||||||||||
October 1 – 31, 2021 |
— | — | — | $ | — | |||||||||||
November 1 – 30, 2021 |
1,250 | $ 2.38 | — | — | ||||||||||||
December 1 – 31, 2021 |
9,460 | 1.94 | — | — | ||||||||||||
|
|
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Total |
10,710 | |||||||||||||||
|
|
• | 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 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. |
Revenue growth rates |
0.3% - 13.0% | |
Market revenue shares at maturity |
0.6% - 44.0% | |
Operating income margins at maturity |
19.2% - 32.6% | |
Discount rate |
8.5% |
Market cluster |
FCC broadcasting licenses |
Excess |
||||||
Atlanta, GA |
$ | 832,300 | 65.2 | % | ||||
Augusta, GA |
6,113,075 | 98.9 | ||||||
Boston, MA |
137,856,160 | 17.6 | ||||||
Charlotte, NC |
56,418,151 | 31.8 | ||||||
Detroit, MI |
29,978,201 | 27.1 | ||||||
Fayetteville, NC |
8,974,679 | 43.7 | ||||||
Fort Myers-Naples, FL |
9,555,146 | 15.0 | ||||||
Las Vegas, NV |
34,689,500 | 10.3 | ||||||
Middlesex, Monmouth, Morristown, NJ |
21,896,900 | 23.6 | ||||||
Philadelphia, PA |
119,674,192 | 32.6 | ||||||
Tampa-Saint Petersburg, PA |
61,787,351 | 39.2 | ||||||
West Palm Beach-Boca Raton, FL |
2,647,458 | 20.7 | ||||||
Wilmington, DE |
17,990,800 | 7.9 |
Year ended December 31, |
Change |
|||||||||||||||
2020 |
2021 |
$ |
% |
|||||||||||||
Net revenue |
$ | 206,143,861 | $ | 241,426,308 | $ | 35,282,447 | 17.1 | % | ||||||||
Operating expenses |
182,181,555 | 199,470,185 | 17,288,630 | 9.5 | ||||||||||||
Corporate expenses |
15,628,370 | 16,578,046 | 949,676 | 6.1 | ||||||||||||
Impairment losses |
8,970,812 | — | (8,970,812 | ) | (100.0 | ) | ||||||||||
Gain on dispositions |
4,439,710 | 191,988 | (4,247,722 | ) | (95.7 | ) | ||||||||||
Other operating income, net |
3,000,000 | 400,000 | (2,600,000 | ) | (86.7 | ) | ||||||||||
Interest expense |
16,894,407 | 26,456,236 | 9,561,829 | 56.6 | ||||||||||||
Loss on extinguishment of long-term debt |
2,798,789 | 4,996,731 | 2,197,942 | 78.5 | ||||||||||||
Gain on forgiveness of long-term debt |
— | 10,000,000 | 10,000,000 | — | ||||||||||||
Income tax benefit |
5,185,992 | 5,321,630 | 135,638 | 2.6 | ||||||||||||
Net loss |
18,874,156 | 1,535,094 | (17,339,062 | ) | (91.9 | ) |
• | internally generated cash flow; |
• | additional borrowings or notes offerings, to the extent permitted under the Indenture governing our Notes; and |
• | additional equity offerings. |
Year ended December 31, |
||||||||
2020 |
2021 |
|||||||
Net cash provided by (used in) operating activities |
$ | 4,214,316 | $ | (1,907,227 | ) | |||
Net cash used in investing activities |
(3,845,616 | ) | (1,136,268 | ) | ||||
Net cash provided by financing activities |
1,742,561 | 33,662,705 | ||||||
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|
|
|
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Net increase in cash and cash equivalents |
$ | 2,111,261 | $ | 30,619,210 | ||||
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Financial Statements |
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30 |
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32 |
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33 |
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34 |
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35 |
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36 |
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51 |
Crowe LLP Independent Member Crowe Global |
a. | Evaluated management’s judgements in their assessment of identifying changes in market conditions, events or other changes in circumstances that indicate an impairment of FCC licenses may be present. |
b. | Tested the completeness, accuracy, appropriateness of aggregation and relevance of underlying data used in the valuation model based on the Greenfield method. |
c. | Evaluated the appropriateness of valuation model used, evaluating certain assumptions applied in the valuation model, and recalculations of the discounted cash flow schedules. |
d. | Evaluated the significant assumptions used by management, including normalized market share and profit margin of an average station within a market based upon market size and station type, the forecasted growth rate of each radio market (including long-term growth rate), and the discount rate. This involved evaluating whether the assumptions used by management were reasonable considering (i) the current and past performance in the market being evaluated, (ii) the consistency with external market and industry data, and (iii) whether these assumptions were consistent with evidence obtained in other areas of the audit. |
e. | Utilized valuation specialists to assist in evaluating certain assumptions applied in the valuation model. |
December 31, |
December 31, |
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2020 |
2021 |
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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 |
$ | |
$ | |
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LIABILITIES AND EQUITY |
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Current liabilities: |
||||||||
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 current installments and unamortized debt issuance costs |
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Operating lease liabilities |
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Finance lease liabilities |
— | |||||||
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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Noncontrolling interests |
( |
) | — | |||||
Total equity |
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Total liabilities and equity |
$ | $ | ||||||
Year Ended |
Year Ended |
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December 31, |
December 31, |
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2020 |
2021 |
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Net revenue |
$ | |
$ | |
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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 losses |
— | |||||||
Gain on dispositions |
( |
) | ( |
) | ||||
Other operating income, net |
( |
) | ( |
) | ||||
Total operating expenses |
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Operating income (loss) |
( |
) | ||||||
Non-operating income (expense): |
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Interest expense |
( |
) | ( |
) | ||||
Loss on extinguishment of long-term debt |
( |
) | ( |
) | ||||
Gain on forgiveness 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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) | ||||
Net loss |
( |
) | ( |
) | ||||
Earnings attributable to noncontrolling interest |
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Net loss attributable to BBGI stockholders |
( |
) | ( |
) | ||||
Other comprehensive loss: |
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Unrecognized actuarial gain (loss) on postretirement plan (net of income tax benefit of $ |
( |
) | ||||||
Comprehensive loss |
$ | ( |
) | $ | ( |
) | ||
Net loss attributable to BBGI stockholders per Class A and B common share: |
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Basic and diluted |
$ | ( |
) | $ | ( |
) | ||
Dividends declared per common share |
$ | $ | — | |||||
Weighted average shares outstanding: |
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Basic and diluted |
Common Stock |
Accumulated Other Comprehensive Loss |
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Class A |
Class B |
Additional Paid-In Capital |
Treasury Stock |
Retained Earnings |
Noncontrolling Interest |
Total Equity |
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Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
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Balances as of January 1, 2020 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||||||||||||
Issuance of common stock |
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Stock-based compensation |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Adjustment from related party acquisition |
— | — | — | — | ( |
) | — | — | — | — | — | ( |
) | |||||||||||||||||||||||||||||||
Purchase of treasury stock |
— | — | — | — | — | ( |
) | ( |
) | — | — | — | ( |
) | ||||||||||||||||||||||||||||||
Net loss |
— | — | — | — | — | — | — | ( |
) | — | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Cash dividends, $ |
— | — | — | — | — | — | — | ( |
) | — | — | ( |
) | |||||||||||||||||||||||||||||||
Other comprehensive loss |
— | — | — | — | — | — | — | — | ( |
) | — | ( |
) | |||||||||||||||||||||||||||||||
Noncontrolling interest created in consolidation |
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
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Balances as of December 31, 2020 |
( |
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Stock-based compensation |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Acquisition of noncontrolling interest |
— | — | — | — | ( |
) | — | — | — | — | — | ( |
) | |||||||||||||||||||||||||||||||
Adjustment from related party acquisition |
— | — | — | — | ( |
) | — | — | — | — | — | ( |
) | |||||||||||||||||||||||||||||||
Purchase of treasury stock |
— | — | — | — | — | ( |
) | ( |
) | — | — | — | ( |
) | ||||||||||||||||||||||||||||||
Net loss |
— | — | — | — | — | — | — | ( |
) | — | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Other comprehensive gain |
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Elimination of noncontrolling interest |
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
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Balances as of December 31, 2021 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | $ | ( |
) | $ | — | $ | |||||||||||||||||||||||||||||
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Year Ended December 31, 2020 |
Year Ended December 31, 2021 |
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Cash flows from operating activities: |
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Net loss |
$ | ( |
) | $ | ( |
) | ||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
||||||||
Stock-based compensation |
||||||||
Provision for bad debts |
( |
) | ||||||
Depreciation and amortization |
||||||||
Impairment losses |
— | |||||||
Non-cash interest expense |
— | |||||||
Gain on dispositions |
( |
) | ( |
) | ||||
Other operating gain |
( |
) | — | |||||
Amortization of loan fees |
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Loss on extinguishment of long-term debt |
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Gain on forgiveness of long-term debt |
— | ( |
) | |||||
Deferred income taxes |
( |
) | ( |
) | ||||
Equity in earnings of unconsolidated affiliates |
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Change in operating assets and liabilities: |
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Accounts receivable |
( |
) | ||||||
Prepaid expenses |
( |
) | ||||||
Other assets |
( |
) | ( |
) | ||||
Accounts payable |
( |
) | ||||||
Other liabilities |
( |
) | ||||||
Other operating activities |
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Net cash provided by (used in) operating activities |
( |
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Cash flows from investing activities: |
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Capital expenditures |
( |
) | ( |
) | ||||
Proceeds from dispositions |
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Proceeds from life insurance |
— | |||||||
Payments for investments |
( |
) | — | |||||
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Net cash used in investing activities |
( |
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Cash flows from financing activities: |
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Issuance of debt |
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Payments on debt |
( |
) | ( |
) | ||||
Payment of debt issuance costs |
( |
) | ( |
) | ||||
Reduction of finance lease liabilities |
( |
) | ( |
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Dividends paid |
( |
) | — | |||||
Purchase of treasury stock |
( |
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) | ||||
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Net cash provided by financing activities |
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Net increase in cash and cash equivalents |
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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 |
$ | — | $ | |||||
|
|
|
|
|||||
Class A common stock issued for debt repayment |
$ | $ | — | |||||
|
|
|
|
(1) |
Nature of Business |
(2) |
Summary of Significant Accounting Policies |
(3) |
Acquisitions and Dispositions |
(4) |
Property and Equipment |
December 31, |
Estimated useful lives (years) |
|||||||||||
2020 |
2021 |
|||||||||||
Land |
$ | $ | — | |||||||||
Buildings and improvements |
||||||||||||
Broadcast equipment |
||||||||||||
Transportation equipment |
||||||||||||
Office equipment |
||||||||||||
Construction in progress |
— | |||||||||||
|
|
|
|
|||||||||
Less accumulated depreciation and amortization |
( |
) | ( |
) | ||||||||
|
|
|
|
|||||||||
$ | $ | |||||||||||
|
|
|
|
(5) |
FCC Licenses |
Balance as of January 1, 2020 |
$ | |||
Impairment losses |
( |
) | ||
|
|
|||
Balance as of December 31, 2020 |
||||
Disposition |
( |
) | ||
|
|
|||
Balance as of December 31, 2021 |
$ | |||
|
|
Revenue growth rates |
( | |
Market revenue shares at maturity |
||
Operating income margins at maturity |
||
Discount rate |
(6) |
Other Intangibles |
Asset |
Accumulated amortization |
Net asset |
Amortization period (years) |
|||||||||||||
Advertiser relationships |
$ | $ | ( |
) | $ | |||||||||||
Franchise rights |
( |
) | ||||||||||||||
|
|
|
|
|
|
|||||||||||
( |
) | |||||||||||||||
Brands |
— | |||||||||||||||
Other intangibles with indefinite lives |
— | |||||||||||||||
|
|
|
|
|
|
|||||||||||
$ | $ | ( |
) | $ | ||||||||||||
|
|
|
|
|
|
Asset |
Accumulated amortization |
Net asset |
Amortization period (years) |
|||||||||||||
Advertiser relationships |
$ | $ | ( |
) | $ | |||||||||||
Franchise rights |
( |
) | ||||||||||||||
Sponsorship base |
( |
) | ||||||||||||||
|
|
|
|
|
|
|||||||||||
( |
) | |||||||||||||||
Brands |
— | |||||||||||||||
Other intangibles with indefinite lives |
— | |||||||||||||||
|
|
|
|
|
|
|||||||||||
$ |
$ | ( |
) | $ |
||||||||||||
|
|
|
|
|
|
2022 |
$ | |||
2023 |
||||
2024 |
||||
2025 |
||||
2026 |
||||
Thereafter |
||||
|
|
|||
Total |
$ | |||
|
|
(7) |
Other Assets |
(8) |
Other Current Liabilities |
December 31, |
||||||||
2020 |
2021 |
|||||||
Accrued interest |
$ | $ | ||||||
Accrued payroll expenses |
||||||||
Deferred revenue |
||||||||
Trade sales payable |
||||||||
Income taxes payable |
— | |||||||
Other accrued expenses |
||||||||
|
|
|
|
|||||
$ | $ | |||||||
|
|
|
|
(9) |
Long-Term Debt |
December 31, 2020 |
December 31, 2021 |
|||||||
Secured notes |
$ | — | $ | |||||
Credit facility - term loan |
— | |||||||
Credit facility - revolving credit facility |
— | |||||||
Promissory note |
— | |||||||
|
|
|
|
|||||
Less unamortized debt issuance costs |
( |
) | ( |
) | ||||
|
|
|
|
|||||
$ | |
$ | |
|||||
|
|
|
|
(10) |
Leases |
Year ended December 31, |
||||||||
2020 |
2021 |
|||||||
Lease cost |
||||||||
Operating lease cost |
$ | $ | ||||||
Finance lease cost: |
||||||||
Amortization of right-of-use |
||||||||
Interest on lease liability |
||||||||
Short-term lease cost |
||||||||
Total lease cost |
$ | $ | ||||||
Other information |
||||||||
Operating cash flows from operating leases |
$ | $ | ||||||
Operating cash flows from finance lease |
||||||||
Financing cash flows from finance lease |
||||||||
Right-of-use |
||||||||
Right-of-use |
December 31, 2021 |
||||
Weighted-average remaining lease term – operating leases |
||||
Weighted-average remaining lease term – finance lease |
||||
Weighted-average discount rate – operating leases |
||||
Weighted-average discount rate – finance lease |
2022 |
$ | |||
2023 |
||||
2024 |
||||
2025 |
||||
2026 |
||||
Thereafter |
||||
Total lease payments |
||||
Less imputed interest |
( |
) | ||
Present value of lease liabilities |
$ | |||
(11) |
Employee Benefit Plans |
Year ended December 31, |
||||||||
2020 |
2021 |
|||||||
Change in Projected Benefit Obligation |
||||||||
Benefit obligation at beginning of year |
$ | |
$ | |||||
Interest cost |
|
|||||||
Actuarial (gain) loss |
|
( |
) | |||||
Benefits paid |
( |
) | |
( |
) | |||
|
|
|
|
|||||
Benefit obligation at end of year |
$ | |
$ | |||||
|
|
|
|
Change in Plan Assets |
||||||||
Fair value of plan assets at beginning of year |
$ |
— |
|
$ |
|
| ||
Employer contribution |
|
|
|
|
|
| ||
Benefits paid |
|
( |
) |
|
( |
) | ||
|
|
|
|
|||||
Fair value of plan assets at end of year |
$ |
|
|
$ |
|
| ||
|
|
|
|
|||||
Funded status |
$ |
( |
) |
$ |
( |
) | ||
Unrecognized net actuarial loss |
|
|
|
|
|
| ||
|
|
|
|
|||||
Cumulative employer contributions in excess of the net periodic pension cost |
$ |
( |
) |
$ |
( |
) | ||
|
|
|
|
Amounts Recognized in the Statement of Financial Position |
|
|||||||
Current liabilities |
$ |
( |
) |
$ |
( |
) | ||
Noncurrent liabilities |
|
( |
) |
|
( |
) | ||
|
|
|
|
|||||
Net amount recognized |
$ |
( |
) |
$ |
( |
) | ||
|
|
|
|
Amounts Recognized in Accumulated Other Comprehensive Income |
|
|||||||
Net actuarial loss |
$ |
|
|
$ |
|
| ||
|
|
|
|
|||||
Total (before tax effects) |
$ |
|
|
$ |
|
| ||
|
|
|
|
Information for Pension Plans about Benefit Obligation and Plan Assets |
| |||||||
Projected benefit obligation |
$ | $ | ||||||
Accumulated benefit obligation |
$ | $ |
Weighted-average assumptions for Disclosure |
||||||||
Discount rate |
% | % | ||||||
Mortality table |
||||||||
Mortality improvement scale |
Net periodic benefit cost |
||||||||
Interest cost |
$ | $ | ||||||
Recognized net actuarial (gain) loss |
— | |||||||
|
|
|
|
|||||
Net periodic benefit cost |
$ | $ | ||||||
|
|
|
|
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income |
| |||||||
Net actuarial (gain) loss |
$ | $ | ( |
) | ||||
Recognized net actuarial (gain) loss |
— | ( |
) | |||||
Total recognized in other comprehensive income (before tax effects) |
$ | $ | ( |
) | ||||
Total recognized in net cost and other comprehensive income (before tax effects) |
$ | $ | ( |
) | ||||
|
|
|
|
Amounts Expected to be Recognized in Net Periodic Cost in the Coming Year |
|
|||||||
(Gain) loss recognition |
$ |
|
|
$ |
|
| ||
Prior service cost recognition |
$ |
|
|
$ |
|
| ||
Net initial obligation (asset) recognition |
$ |
|
|
$ |
|
|
Weighted-average assumptions used to determine Net Periodic Benefit Cost |
| |||||||
Discount rate |
% | % | ||||||
Corridor |
% | % | ||||||
Average future working lifetime |
||||||||
Mortality table |
||||||||
Mortality improvement scale |
Estimated Future Benefit Payments |
|
|||||||
2022 |
|
$ |
| |||||
2023 |
|
$ |
| |||||
2024 |
|
$ |
| |||||
2025 |
|
$ |
| |||||
2026 |
|
$ |
| |||||
2027-2031 |
|
$ |
|
|
Contributions |
||||||
Estimated contributions for 2022 |
$ |
|
| |||
|
|
(12) |
Stockholders’ Equity |
(13) |
Revenue |
Year ended December 31, |
||||||||
2020 |
2021 |
|||||||
Audio |
$ | $ | ||||||
Digital |
||||||||
Other |
||||||||
|
|
|
|
|||||
$ | $ | |||||||
|
|
|
|
December 31, 2020 |
December 31, 2021 |
|||||||
Deferred revenue |
$ | $ |
Year ended December 31, |
||||||||
2020 |
2021 |
|||||||
Losses on receivables |
$ | $ |
December 31, |
December 31, |
|||||||
2020 |
2021 |
|||||||
Trade sales receivable |
$ |
$ |
||||||
Trade sales payable |
Year ended December 31, |
||||||||
2020 |
2021 |
|||||||
Trade sales revenue |
$ | $ |
(14) |
Stock-Based Compensation |
Units |
Weighted- Average Grant-Date Fair Value |
|||||||
Unvested as of January 1, 2020 |
$ | |||||||
Granted |
||||||||
Vested |
( |
) | ||||||
Forfeited |
( |
) | ||||||
Unvested as of December 31, 2020 |
||||||||
Granted |
||||||||
Vested |
( |
) | ||||||
Forfeited |
( |
) | ||||||
Unvested as of December 31, 2021 |
$ | |||||||
Shares |
Weighted- Average Grant-Date Fair Value |
|||||||
Unvested as of January 1, 2020 |
$ | |||||||
Vested |
( |
) | ||||||
Forfeited |
( |
) | ||||||
Unvested as of December 31, 2020 |
||||||||
Vested |
( |
) | ||||||
Unvested as of December 31, 2021 |
$ | |||||||
(15) |
Income Taxes |
Year ended December 31, |
||||||||
2020 |
2021 |
|||||||
Current: |
||||||||
Federal |
$ | ( |
) | $ | — | |||
State |
— | |||||||
( |
) | — | ||||||
Deferred: |
||||||||
Federal |
( |
) | ||||||
State |
( |
) | ( |
) | ||||
( |
) | ( |
) | |||||
$ | ( |
) | $ | ( |
) | |||
Year ended December 31, |
||||||||
2020 |
2021 |
|||||||
Expected tax benefit |
$ | ( |
) | $ | ( |
) | ||
State income taxes, net of federal benefit |
( |
) | ( |
) | ||||
Tax rate adjustments |
( |
) | ( |
) | ||||
Change in valuation allowance |
( |
) | ( |
) | ||||
Non-deductible items |
||||||||
Non-taxable items |
— | ( |
) | |||||
Other |
( |
) | ||||||
$ | ( |
) | $ | ( |
) | |||
December 31, |
||||||||
2020 |
2021 |
|||||||
Deferred tax assets: |
||||||||
Allowance for doubtful accounts |
$ | $ | ||||||
Other assets |
( |
) | ||||||
Operating lease liabilities |
||||||||
Other long-term liabilities |
||||||||
Stock-based compensation |
||||||||
Interest expense limitation |
||||||||
Net operating losses |
||||||||
Subtotal |
||||||||
Valuation allowance |
( |
) | ( |
) | ||||
Total |
||||||||
Deferred tax liabilities: |
||||||||
Prepaid expenses |
( |
) | ( |
) | ||||
Property and equipment |
( |
) | ( |
) | ||||
Intangibles |
( |
) | ( |
) | ||||
Total |
( |
) | ( |
) | ||||
Net deferred tax liabilities |
$ | ( |
) | $ | ( |
) | ||
(16) |
Loss Per Share |
Year ended December 31, |
||||||||
2020 |
2021 |
|||||||
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 |
$ |
( |
) |
$ |
( |
) | ||
(17) |
Related Party Transactions |
(18) |
Commitments and Contingencies |
2022 |
$ |
|||
2023 |
||||
2024 |
||||
2025 |
||||
2026 |
||||
Thereafter |
||||
Total |
$ |
|||
(19) |
Financial Instruments |
(20) |
Segment Information |
|
Audio |
Digital |
Other |
Corporate |
Total |
|||||||||||||||
Net revenue |
$ |
$ |
$ |
$ |
— |
$ |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating expenses |
— |
|||||||||||||||||||
Corporate expenses |
— |
— |
— |
|||||||||||||||||
Depreciation and amortization |
||||||||||||||||||||
Gain on disposition |
( |
) |
— |
— |
— |
( |
) | |||||||||||||
Other operating (income) expense, net |
— |
— |
( |
) |
( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating income (loss) |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
Audio |
Digital |
Other |
Corporate |
Total |
|||||||||||||||
Capital expenditures |
$ |
$ |
$ |
$ |
( |
) |
$ |
|||||||||||||
Property and equipment, net |
||||||||||||||||||||
FCC licenses |
— |
— |
— |
|||||||||||||||||
Goodwill |
— |
— |
||||||||||||||||||
Other intangibles, net |
— |
Description |
Balance at Beginning of Period |
Charged to Costs and Expenses |
Deductions |
Balance at End of Period |
||||||||||||
Year ended December 31, 2020: |
||||||||||||||||
Allowance for doubtful accounts (deducted from accounts receivable) |
||||||||||||||||
Valuation allowance for deferred tax assets |
— | |||||||||||||||
Year ended December 31, 2021: |
||||||||||||||||
Allowance for doubtful accounts (deducted from accounts receivable) |
( |
) | ||||||||||||||
Valuation allowance for deferred tax assets |
— |
(1) | pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company; |
(2) | provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of managements and directors of the Company; and |
(3) | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements. |
(a) | Financial Statements. A list of financial statements and schedules included herein is set forth in the Index to Financial Statements appearing in “ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.” |
(b) | Exhibits. |
31.2 | Certification of Chief Financial Officer pursuant to Rule 15d-14(a) (17 CFR 240.15d-14(a)). | |
32.1 | Certification of Chief Executive Officer pursuant to Rule 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 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) |
B EASLEY BROADCAST GROUP , INC . | ||
By: |
/s/ C AROLINE BEASLEY | |
Caroline Beasley Chief Executive Officer |
Date: |
February 23, 2022 |
Signature |
Title |
Date | ||
/s/ C AROLINE BEASLEY Caroline Beasley |
Chairman of the Board and Chief Executive Officer (principal executive officer) |
February 23, 2022 | ||
/s/ B RUCE G. BEASLEY Bruce G. Beasley |
President and Director |
February 23, 2022 | ||
/s/ B RIAN E. BEASLEY Brian E. Beasley |
Chief Operating Officer and Director |
February 23, 2022 | ||
/s/ M ARIE TEDESCO Marie Tedesco |
Chief Financial Officer (principal financial and accounting officer) |
February 23, 2022 | ||
/s/ A LLEN B. SHAW Allen B. Shaw |
Vice-Chairman of the Board |
February 23, 2022 | ||
/s/ P ETER A. BORDES Peter A. Bordes |
Director |
February 23, 2022 | ||
/s/ M ICHAEL J. FIORILE Michael J. Fiorile |
Director |
February 23, 2022 | ||
/s/ L ESLIE V. GODRIDGE Leslie V. Godridge |
Director |
February 23, 2022 | ||
/s/ C HARLES M. WARFIELD Charles M. Warfield |
Director |
February 23, 2022 |