Q4 2021 Beasley Broadcast Group Inc Earnings Call
[music].
Good morning, and welcome to Beasley broadcast group's fourth quarter 2021 conference call today's conference is being recorded.
Speaker 1: Good morning and welcome to Beasley Broadcast Group's fourth quarter 2021 conference call. Today's conference...
Speaker 1: Before proceeding, I would like to emphasize that today's conference call and webcast will
Before proceeding I would like to emphasize that today's conference call and webcast will contain forward looking statements about our future performance and results of operations that involve risks and uncertainties described in the risk factors section of our most recent annual report on Form 10-K , as a supplement that.
Speaker 1: about our future performance and results of operations that involve risks and uncertainties described in the risk factors section of our most recent annual report on Form 10-K as is supplemented by our quarterly reports on Form 10-Q . Today's webcast will also contain a discussion of certain non-GAAP financial matters and
By our quarterly reports on Form 10-Q .
Today's webcast will also contain a discussion of certain non-GAAP financial measures within the meaning of item 10 of regulation S. K.
Reconciliation of these non-GAAP measures with their most directly comparable financial measures calculated and presented in accordance with GAAP.
In the mornings news announcement and on the company's website.
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Listeners that following its completion a replay of today's call can be accessed for five days on the Companys website.
Www dot.
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You can also find a copy of a copy of today's press release on the investors or pressroom sections of the site.
At this time I'd like to turn the conference your host Beasley broadcast group's CEO Caroline Beasley. Please go ahead.
Speaker 2: Thank you, Anna, and good morning, everyone, and thank you for joining us to review our 2021 fourth quarter and full year operating results. Marie Tedesco, our CFO , is with me this morning.
Thank you Anna and good morning, everyone and thank you for joining us to review, our 2021 fourth quarter and full year operating results Marie Tedesco. Our CFO is with me this morning.
Speaker 2: So Q4 proved to be another strong quarter with total revenue growth of 3.3%, nicely outpacing the 2% revenue guidance we provided on our last earnings call as we successfully offset the 4 Q2 020 political revenue contribution.
So Q4 proved to be another strong quarter with total revenue growth of 3.3% nicely outpacing the 2% revenue guidance. We provided on our last earnings call as we successfully offset the <unk> 'twenty 'twenty political revenue contribution.
Speaker 2: Our active new business initiative, sports betting revenue, and a 3.4 million increase in digital revenue were the primary drivers to the strong quarter.
Our active new business initiatives sports betting revenue and a $3 4 million increase in digital revenue were the primary drivers to the strong quarter.
Speaker 2: As a reminder, we recorded approximately $10.2 million of political revenue in the fourth quarter of 2020.
As a reminder, we recorded approximately $10 2 million of political revenue in the fourth quarter of 2020, and $15 1 million net political for the full year.
Speaker 2: and $15.1 million net political for the full year.
As such ex political our 2021 fourth quarter revenues exceeded Q4, 'twenty levels by $12 1 million or about 21% with local spot, increasing 14, 4% and national increasing nine 2% now including <unk>.
Speaker 2: ex-political, our 2021 fourth quarter revenues exceeded Q420 levels by 12.1 million or about 21% with local spot increasing 14.4% and national increasing 9.2%. Now including political, so these are actual numbers for the same period, over the air spot revenue increased
Political so these are actual numbers for the same period over the air spot revenue increased 10, 9%, while national declined 38% and this represent the largest portion of this decline coming from.
Speaker 2: 10.9% while national declined 38%. And this represents a large portion of this decline coming from political.
Political.
Speaker 2: for 2020. A special note here is that we were able to offset over-the-air spot declines from political with increases from digital to generate overall revenue growth for the quarter of 3.3%.
For 2020, a special note here is that we were able to offset over the ear spot declines from political with increases from digital to generate overall revenue growth for the quarter of three 3%.
Speaker 2: And as with recent quarters, our gains were broad-based with 7 of 13 markets delivering year-over-year revenue increases, including double-digit growth in Boston, Fort Myers, Las Vegas, and Philadelphia.
And as with recent quarters, our gains were broad based with seven of 13 markets delivering year over year revenue increases, including double digit growth in Boston Fort Myers, Las Vegas, and Philadelphia now looking at the quarter October was down 10, 4% at the political comp had the bigger.
Speaker 2: Now looking at the quarter, October was down 10.4% as the political comp had the biggest impact.
Impact while November was up 16, 8% and December was up 8% year over year, comparing our revenue performance for Q2 thousand 19, and this is a target comparison in our pandemic recovery our revenue for the quarter was down less than 2%.
Speaker 2: while November was up 16.8% and December was up 8% year over year. Comparing our revenue performance to 4.2% 2019, and this is a target comparison in our pandemic recovery, our revenue for the quarter was down less than 2% or $1.4 million. And for the full year, when comparing to 2019 revenue decline, our revenue was down 7.7% or $20 million.
<unk> or $1 4 million and for the full year when comparing to 2019 revenue declined seven 7% or $20 million.
Speaker 2: While our goal is to grow our total audience, we are focused on growing and expanding our digital platform, where impressions have become a valuable and marketable commodity.
While our goal is to grow our total audience. We are focused on growing and expanding our digital platform, where impressions have become a valuable and marketable commodity making content on the digital side, our priority, having said that during the quarter, we continued to make meaningful progress with our digital.
Speaker 2: making content on the digital side our priority. Having said that during the quarter, we continue to make meaningful progress with our digital growth initiative. As Q4 digital revenue rose 47.3% year over year and represented 15.2% or 10.7 million of total fourth quarter revenue. And that's up from 10.7% in the comparable year ago quarter.
Growth initiatives F Q4, digital revenue Rose 47, 3% year over year, and represented 15, 2% or $10 7 million of total fourth quarter revenue and that's up from 10, 7% in the comparable year ago quarter.
Speaker 2: This trend was also evident in the 2021 four-year results, with digital revenue representing 13.7% or $32.7 million of total revenue, marking a significant increase from 10.7% for the full year of 2020.
This trend was also evident in the 2021 four year results with digital revenue, representing 13, 7% or $32 7 million of total revenue, marking a significant increase from 10, 7% for the full year of 2020, we are moving closer to.
Speaker 2: We are moving closer to our near-derirm goal of digital revenue representing 20% of our total revenue. And as noted on previous calls, we are laser focused on diversifying our revenue streams and increasing our cash flow.
Our near term goal of digital revenue, representing 20% of our total revenue and as noted on previous calls we are laser focused on diversifying our revenue streams and increasing our cash flow.
Speaker 2: Now, sports betting revenue continued to grow to 4.3 million or 6.4 percent of total revenue for the quarter. This is an increase of 65 percent year over year and 15.2 million for the full year where it represented 6.6 percent of our total revenue. The sports betting revenue growth was driven by our Detroit, Philadelphia, and New Jersey clusters and reflect our strong local presence in these markets.
Now sports betting revenue continued to grow to $4 3 million or six 4% of total revenue for the quarter. This is an increase of 65% year over year and $15 2 million for the full year, where it represented six 6% of our total revenue.
Sports betting revenue growth was driven by our Detroit, Philadelphia, and New Jersey clusters and reflect our strong local presence in these markets now, Massachusetts is in the process of legalizing sports betting, which if approved by this year's third quarter could represent meaningful revenue given our sports station <unk>.
Speaker 2: Now Massachusetts is in the process of legalizing sport betting, which if approved by this year's third quarter could represent meaningful revenue given our sport station in Boston.
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Now our fourth quarter operating expenses increased 17, 6% year over year, which resulted in fourth quarter Soi decreased $96 2 million to $13 9 million compared with $20 1 million in last year's fourth quarter breaking down the increase in operating expenses too.
Speaker 2: 17.6% year over year, which resulted in fourth quarter SOI decreasing 6.2 million to 13.9 million compared with 20.1 million in last year's fourth quarter.
Speaker 2: Breaking down the increase in operating expenses, 2.5 million is directly related to the build out of our digital agency.
5 million is directly related to the build out of our digital agency additional drivers where the temporary cost reductions implemented in 2020, which have return such as wage cuts and furloughs investment in marketing and research and of course, an increase in cost of sales related to the inquiry.
Speaker 2: Additional drivers were the temporary cost reductions implemented in 2020, which have returned, such as wage cuts and furloughs, investment in marketing and research, and of course an increase in cost of sales related to the increase in revenue. Finally, we are seeing an overall increase in wages due to inflation. Now I'm going to turn it over to Marie, and she's going to give you more detailed data on fourth quarter.
And revenue finally, we are seeing an overall increase in wages due to inflation.
I'll now turn it over to Marie and she's going to give you more detailed.
Data on the fourth quarter.
Speaker 3: Thanks Caroline and good morning everyone. I will start with a review of the fourth quarter and full year results followed by a review of our balance.
Thanks, Caroline and good morning, everyone I will start with a review of the fourth quarter and full year results followed by a review of our balance sheet.
Speaker 3: Both quarter net revenue increased 3.3% or $2.3 million to $70.7 million, which includes $585,000 from our e-sport teams, the Outlaws and Rocket League, our new organically created e-sport teams.
Fourth quarter net revenue increased three 3% or $2 3 million to $74 7 million, which includes 585000 from our esport teams the outflow and the rockabilly argue organically created the 14, we generated approximately 400000.
Speaker 3: We generated approximately $400,000 in net political revenue compared to $10.2 million in the prior year.
Net political revenue compared to $10 2 million in the prior year, excluding 2020 political our revenue would have increased 27%.
Speaker 3: Excluding 2020 political, our revenue would have increased 20.7%.
Speaker 3: Despite the prior year's political, we grew revenue year over year at our Boca Raton, Boston, Fort Myers, Las Vegas, New Jersey, Philadelphia, and Wilmington clusters.
In fact, the prior year political free grew revenue year over year at our Boca Raton, Boston Fort Myers, Las Vegas, New Jersey, Philadelphia, and Wilmington clusters, rather tomorrow, when comparing the fourth quarter 'twenty one through fourth quarter 2019, net revenue was down just one 9% or just.
Speaker 3: Furthermore, when comparing 4th Quarter 21 to 4th Quarter 2019, net revenue was down just 1.9% or just under $1.4 million.
Under $1 4 million.
Speaker 3: Full year revenues increased 17.1% or $35.3 million to $241 million compared to $206 million in 2020, which included approximately $15 million of political ad revenue.
Full year revenues increased to 17, 1% or $35 3 million to 241 million compared to $206 million in 2020, which included approximately 15 million of political AD revenue.
Speaker 3: Boston and Philadelphia had year-over-year revenue increases of more than 10 million and generated double-digit revenue growth along with Detroit Fort Myers Las Vegas, New Jersey and Wilmington on a year-over-year basis.
Boston and Philadelphia had year over year revenue increases of more than $10 million and generated double digit revenue growth along with Detroit Fort Myers, Las Vegas, New Jersey on enrollments on a year over year basis.
Speaker 3: Digital revenue for the quarter and year grew 47.3% and 61.6% respectively to 10.7 million and 32.7 million respectively. We are pleased with the returns we are getting on our investment in growing this revenue stream and diversifying our revenue sources.
Digital revenue for the quarter and year over year to 47, 3% at 61, 6% respectively.
$10 7 million and $32 7 million, respectively, and we are pleased with the returns we're getting on our investments in growing this revenue stream and diversifying our revenue sources there.
Speaker 3: Station operating expenses for the quarter increased $8.5 million for 17.6%, $256.8 million, resulting in fourth quarter 21 SLI of $13.9 million.
Station operating expenses for the quarter increased $8 5 million or 17, 6% to $56 8 million, resulting in fourth quarter 21 July of $13 9 million.
Speaker 3: Our quarterly expense increase includes $2.5 million directly related to the build-up of our digital age.
Our quarterly expense increase includes $2 5 million directly related to the Buildout of our digital agency. The other drivers of the expense increase were $3 1 million of increased wages, primarily from the reinstatement of the 2020 rate reduction to pre pandemic level.
Speaker 3: The other drivers of the expense increase for 3.1 million of increased wages from the reinstatement of the 2020 wage reduction to pre-pandemic levels, including the return of burlode employees. A 2.8 million cost of sales related to the increasing revenue, including an increased individual third party hard cost.
Including the return of furloughed employees.
Slide 8 million cost of sales related to the increase in revenue, including an increase in third party hard costs.
Speaker 3: a $1.2 million of investment in advertising, promotions, and research expense, and a $1.2 million increase in rights fees due to more hatred games played in the current quarter. Putting things into a more normalized perspective, our fourth quarter 2021 expenses, when compared to fourth quarter 2019, was up just $300,000.
$1 2 million of investments in advertising promotion and research expense.
One question on the increase in rights fees, just your Mark waitress game like in the current quarter.
What do you think you're into a more normalized perspective, our fourth quarter 21 expenses when compared to fourth quarter 2019 was up Jeff, but 800000 full.
Speaker 3: Full year expenses increase 17.1% or 17.3 million to 199.5 million, which includes our e-ports operation.
Full year expenses increased 17, 4% or $17 3 million to $199 5 million, which includes our esports operation Soi for the full year increased 75%.
Speaker 3: SOI for the full year increased 75% to approximately 42 million.
<unk> hundred 42 million.
Speaker 3: Now looking at our revenue categories for fourth quarter, consumer services remained our largest revenue category at 29% of our total revenue. And we drove an 18.8% year-over-year revenue increase in this category for the quarter. Our second largest category was retail, which represented around 15.7% of fourth quarter total revenues, and retail increased 21% year-over-year.
Now looking at our revenue categories for fourth quarter consumer services remained our largest revenue category at 29% of our total revenue and we drove an 18, 8% year over year revenue increase in this category for the quarter, our second largest category was retail which represented around <unk>.
15, 7% of fourth quarter total revenues and retail increased 21% year over year Entertainment landed and third spa with 15% of our total revenue and entertainment grew 86, 3% year over year. This was driven by four seven which is <unk>.
Speaker 3: Entertainment landed in third spot with 15% of our total revenue and entertainment grew 86.3% year over year. This was driven by sports spending which accounted for approximately $4.3 million for the quarter with this revenue driven by our Detroit, Philadelphia and New Jersey clubs.
<unk> for approximately $4 3 million for the quarter with this revenue driven by our Detroit, Philadelphia, and New Jersey clusters Auto our fourth largest category increased one 3% year over year and accounted for 92% of total revenue we saw a double digit increase in auto.
Speaker 3: Auto, our fourth largest category, increased 1.3% year over year and accounted for 9.2% of total revenue.
Speaker 3: We saw a double-digit increase in auto at our Boston, Augusta, and Las Vegas clusters with mid-single-digit increase from Tampa and New Jersey, this despite continued labor, jet, and supply issues.
At our Boston Augusta, and Las Vegas clusters, with mid single digit increase from Tampa and New Jersey. This despite continued labor chip and supply issues. We expect this category to show significant improvement by early third quarter. Once the supply issue has normalized.
Speaker 3: We accept this category to show significant improvement by early third quarter once the supply issue has normalized.
Speaker 3: Consumer products and telecom runs at our fifth and sixth category, up 6% and 13% respectively.
Consumer products in telecom, Ron cloud, our fifth and sixth category up 6% and 13% respectively.
Speaker 3: On a full year basis, consumer services increased 28.4%, retail increased 24.4%, entertainment was up 70.8%, auto was up 12%, and consumer products increased 35.7%.
On a full year basis consumer services increased 28, 4% rig count increased 24, 4% Entertainment was up 78% auto was up 12% and consumer products increased 35, 7%.
Speaker 3: Looking at our fourth quarter market performance according to Miller Kaplan, three of our seven clusters that report to Miller Kaplan outperformed their market representing about 65% of our fourth quarter revenue.
Looking at our fourth quarter market performance. According to Miller Kaplan three of our seven clusters that report to Miller Kaplan outperform their markets, representing about 65% of our fourth quarter revenue.
Speaker 3: On a combined basis, basically market clusters draw a revenue increase of 2.2% for the quarter after a formal market, which rose 1.9%. We are taking a larger share of local revenue in our market, and that is very evident when looking at our local stock. As our cluster share increased 10.1%, compared to the combined market, which increased 5.7%.
On a combined basis basically market clusters drove a revenue increase of two 2% for the quarter outperforming the market, which rose one 9%.
Or taking a larger share of local revenue being a market and that is very evident when looking at our local spa as our cluster share increased 10, 1% compared to the combined market, which increased five 7% Likewise, our digital investments continue to drive our digital.
Speaker 3: Likewise, our digital investments continue to drive our digital revenue growth as our cluster's digital revenue increased 62 percent compared to the market, which on a combined basis increased 19.5 percent.
Revenue growth as our cluster for digital revenue increased 62% compared to the market.
On a combined basis increased 19, 5%.
Speaker 3: Looking at the full year middle cap on performance, our clusters were up 17.9% compared to our market, which were up 15.5%.
Looking at the full year Miller Kaplan performance, all clusters were up 17, 9% compared to our markets, which were up 15, 5%.
Speaker 3: With our hyper focus on local revenue, our clusters local revenues for the full year were up 22.5% compared to the markets which were up 17.3%. Our full year digital revenues were up 53.2% versus the markets up 31.5%.
With our hyper focus on local revenue our clusters local revenues for the full year were up 22, 5% compared to the markets, which were up 17, 3%. Our full year digital revenues were up 53, 2% versus the market up 31, 5%.
Speaker 3: Corporate GNA expenses for the quarter increased 28.7%, or by 1.1 million, compared to the same quarter a year ago to 4.7 million. The year-over-year increase in corporate GNA is related to the reinstatement of wages, contract services, and non-cash self-based compensation. Full year corporate GNA increased $950,000, or 6.1%.
Corporate G&A expenses for the quarter increased 28, 7% or by $1 1 million compared to the same quarter a year ago to $4 7 million the year over year increase in corporate DNA is related to the reinstatement of wages contract services and noncash stock based.
Compensation full year corporate G&A increased 960000.
Or six 1%.
Speaker 3: Non-cash self-bid compensation increased $153,000 to $209,000 in the quarter and increased $633,000 to $1.4 million for the full year. We had an income tax benefit for the quarter of $904,000 and an income tax benefit for the full year of $5.3 million. Our effective tax rate for the quarter was 26.2%.
Noncash stock based compensation increased 163000 to 209000 in.
In the quarter and increased 633000 to $1 4 million for the full year, we had an income tax benefit for the quarter of 904000, and then income tax benefit for the full year of $5 3 million, our effective tax rate for the quarter was 26, 2%.
Speaker 3: Fourth quarter, 2021 operating income was 6.5 million compared to 19.6 million in the year of a growth quarter, which benefited from the fourth quarter, 2020 non-recurring gain on this position from a Charlotte Land Sale and other operating income, which totaled around 8 million. Full year operating income increased 341 percent from a loss of 4.3 million to a gain of 14.7 million.
Fourth quarter 2021, operating income was $6 5 million compared to $19 6 million in the Europe .
<unk>, which benefited from the fourth quarter of 2020 non recurring gain on dispositions from a Charlotte land sale and other operating income which totaled around 8 million full year operating income increased 341% from a loss of $4 3 million to a gain of $14 seven.
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Speaker 3: Total fourth quarter interest expense increased $2.5 million year over year to $6.8 million and for the full year 2021, interest expense increased approximately $9.6 million due to the increased borrowing cost. We did not have any scheduled term loan payments during the quarter or year leaving us with a total debt of $300 million.
Fourth quarter interest expense increased $2 5 million year over year to $6 8 million and for the full year 2021 interest expense increased approximately $9 6 million due to the increased borrowing costs.
We did not have any scheduled term loan debt payments during the quarter or year, leaving us with a total debt of $300 million.
Speaker 3: Our 10 million PPP law was fully forgiven on November 6th. This is recorded as forgiveness on debt on a balance sheet and as an ad-bass on calculating that wrap.
Our 10 million PPP loan was fully broker event on November 5th. This is recorded as forgiveness on that on our balance sheet and as an add back when calculating leverage.
Speaker 3: Fourth quarter, 2021 free cash flow was 12.2 million, which includes 10 million of the PPP cash, compared with a 16.8 million in the 2024 quarter, which included the political revenue. Full year free cash flow includes it, including the PPP cash was 10.8 million.
Third quarter 2021 free cash flow was $12 2 million, which includes 10 million of the PPP cash compared with $16 8 million in the 2024th quarter, which included political revenue full.
Full year free cash flow inclusive, including that said cash was $10 8 million.
Speaker 3: We ended the quarter with cash on hand of $51.4 million. And lastly, our capital expenditures for the quarter was $795,000 compared to prior year of $481,000.
We ended the quarter with cash on hand of $51 4 million and lastly, our capital expenditures for the quarter was 795000 compared to prior year of 481000 full year Capex spend was $4 5 million compared to 2020 Capex spend.
Speaker 3: Full year capet spend was 4.5 million compared to 2020 capet spend on 7.5 million. And with that, I will turn it back to Caroline. Thank you, Marie. As the data confirms, our radio stations continue to gain share and audience.
Seven five.
And with that I will turn it back to Caroline.
Thank you Murray as the data confirms our radio stations continue to gain share and audience driven by the highest quality multi platform local content and the industry in the fall Nielsen audio ratings period, our overall share increased by 1% quarter to quarter with the top advertising demographic of adults.
Speaker 2: driven by the highest quality multi-platform local content in the industry. In the fall Nielsen audio ratings period, our overall share increased by 1% quarter to quarter with the top advertising demographic of adults 25-54.
25, 54, looking only at our largest ppm markets, we saw a four 5% share increase quarter to quarter and an 8% year over year increase with adults 25 54. This is the largest quarterly share we have ever had in our ppm markets. We can.
Speaker 2: Looking only at our largest PPM markets, we saw a 4.5% share increase quarter to quarter and an 8% year-over-year increase with adults 25-54. This is the largest quarterly share we have ever had in our PPM market.
Speaker 2: We currently have the highest average cluster share when compared to the largest radio broadcasters in PPM. And our digital content strategy continues to show great success. And in Q4, impressions grew by over 39% year over year and by 20% on a quarterly sequential basis.
Currently have the highest average cluster share when compared to the largest radio broadcasters in ppm and our digital content strategy continues to show great success and in Q4 impressions grew by over 39% year over year and by 20% on a quarterly sequential basis.
Speaker 2: This was once again the biggest quarter ever for digital impressions at Beasley. In addition to ratings and audience performance, Beasley puts a high priority on serving the community in which we operate. And almost every station here held charity events during the holiday season.
This was once again the biggest quarter ever for digital impressions at Beazley. In addition to ratings and audience performance easily puts a high priority on serving the communities in which we operate and almost every station here at Cal charity events. During the holiday season for example, W. Mmr's President and Steve <unk>.
Speaker 2: For example, WMMR's Crescent and Steve Morning Show hosted their annual camp out for hunger food drive for 2.3 million pounds of food and over $1 million in cash was collected for the hungry in Philadelphia.
Joe hosted their annual camp out for hunger food drive were $2 3 million pounds of food and over $1 million in cash was collected for the hungry in Philadelphia, while good morning show Orlando and the Freak show held their annual toy drive where they collected almost 700 bicycles 80000.
Speaker 2: Wiles Morning Show, Orlando and the Brief Show held their annual toy drive where they collected almost 700 bicycles, $80,000 in gift cards and four piles of toys for the children of Tampa.
And gift cards and for positive toys for the children of Tampa It wasn't an amazing quarter of audience growth and good cost us for the content Department here at Beazley now moving onto esports, which continues to be a growing them popular asset of our company. During 2021, we continue to focus on expanding our viewers.
Speaker 2: It was an amazing quarter of audience growth and good causes for the content department here at Beasley. Now moving on to esports which continues to be a growing and popular facet of our company.
Speaker 2: During 2021, we continued to focus on expanding our viewership, fan base, and revenue streams. We have a new player roster and management team in place, and we are eagerly awaiting the release of Overwatch 2. During 2021, we expanded our footprint into a Rocket League team, Accelerate, a game with increasing popularity, which already boasts a 90 million player base each month.
Yep fan base and revenue streams, we have a new player roster and management team in place and we are eagerly awaiting the release of Overwatch two.
During 2021, we expanded our footprint into a rocket league team accelerate again with increasing popularity, which already both a 90 million player base each month from an audience fanbase and entertainment perspective, all of our content platforms are digital and we saw phenomenal audience.
Speaker 2: From an audience, fan base, and entertainment perspective, all our content platforms are digital, and we saw phenomenal audience growth during 2021, largely due to the popularity of our team, our players, online matches, streaming, and expansion efforts, and we look forward to more growth in 2022.
During 2021, largely due to the popularity of our teams our players online matches dreaming and expansion efforts and we look forward to more growth in 2022.
Speaker 2: Now looking ahead to first quarter and into 2022, our focus will include revenue diversification, audience expansion, and growing free cash flow, maintaining a strong balance sheet, improving margins, and reducing net leverage. We expect progress on these fronts as we continue to close the gap toward our pre-COVID revenue and SOI level.
Now looking ahead to first quarter and into 2022, our focus will include revenue diversification audience expansion and growing free cash flow, maintaining a strong balance sheet, improving margins and reducing net leverage we expect progress on these fronts as we continue to close the gap.
GAAP toward our pre Covid revenue and soi levels.
Speaker 2: As of today, our first quarter revenue is pacing up approximately 12% and breaking that down January and did up 17% with February and March pacing up seven and 12% respectively. Our first quarter has gotten off to a good start, but as we reminder, another COVID variant could offset revenue growth.
As of today, our first quarter revenue is pacing up approximately 12% and breaking that down January ended up 17% with February and March pacing up 7% and 12% respectively. Our first quarter has gotten off to a good start but as a reminder, another focus area.
It could offset revenue growth.
Speaker 2: Lastly, I'll address the substantial cash on hand on our balance sheet. This is allowing the financial flexibility to either reduce debt and or pursue a potential acquisition or investment within the digital space should an opportunity arise which could accelerate our digital growth or provide significant synergies and free cash flow.
Lastly, I'll address the substantial cash on hand on our balance sheet. This is allowing the financial flexibility to either reduce debt and or pursue a potential acquisition or investment within the digital space should an opportunity arise which could accelerate our digital growth our provides significant tumor.
And free cash flow.
Speaker 2: So, before going to Q and A, I'd like to acknowledge our team members across the company for everything they've done. And are doing to help us quickly address and overcome the challenges of the past 2 years and thrilled to be part of the team as we move into 2022 with the possibility of some challenges. And we know that there will be some, but also. Many opportunities.
So before going to Q&A I'd like to acknowledge our team members across the company for everything they've done and are doing to help us quickly address and overcome the challenges of the past two years and thrilled to be part of the team as we move into 2022 with the possibility of some challenges and we know that there will be songs.
But also many opportunities.
Speaker 2: So on behalf of everyone at Beasley's, thank you for joining us today and Marie. I think we have a couple questions.
On behalf of everyone at Beazley. Thank you for joining us today and Murray I think we have.
Couple of questions.
Speaker 3: Thank you, Aranny, as we do. The first question is, there is lots of talk about the great resignation and companies having a hotter time recruiting new employees. It's easily seeing any impact.
Caroline Yes, we do.
The first question is there is lot of talk about the great resignation and companies, having a harder time recruiting new employees.
Are you seeing any impact yet.
Speaker 2: Yes, we are seeing some impact from this. And we're seeing this primarily from the digital side of the company. I will say that we are adjusting accordingly. And we're looking at different options to address this great resignation. We believe that we're gonna be able to turn these challenges into opportunities, faking us to, allowing us and making sure that we focus on new areas of recruitment.
Yes, we are seeing some impact from the <unk> and we're seeing this primarily from the digital side of the company I will say that we are adjusting accordingly.
And we're looking at different options to address this great resignation, we believe that we're going to be able to turn these challenges into opportunities fucking up too.
Allowing us and focus and making sure that we focus on new areas of recruitment and adds.
Speaker 2: And as another point on that is that we're not seeing as many resignations on the radio side. And I really attribute this to the culture of our radio stations and the dynamic brands that we have in the market.
Another point on that.
Is that we're not seeing as many resignations of the radio side.
And I really attribute this to the culture of <unk>.
Our radio stations in the dynamic brands that we have in the market.
Speaker 3: you know, where the radio stations are located. Thank you. And the second and the last question we got is can you give us the political expectation for 2020?
Where the radio stations are located.
And the second and the last question regard is that can you give us the political expectations for 2022.
Speaker 2: Sure. So let's just go back and review where we were in 2018. We ended the year at about 5 million in political. So that's a non-presidential year. 2020, we ended the year with 15 million in political. So for 2022, we are looking at political revenue to come in slightly north of 2018. Perfect. Thank you.
Sure.
So, let's just go back and review, where we were in 2018, we ended the year at about $5 million in political so that's a non presidential year 2020, we ended the year with $15 million in political so for 2022, we are looking at our political revenue.
To come in slightly north of 2018 perfect. Thank you.
Speaker 2: So with that, those were all the questions that we had. I thank you for your time and should you have any questions, please feel free to reach out to Marie or myself. Thank you.
So with that those were all the questions that we have I. Thank you for your time and should you have any questions. Please feel free to reach out to Marie or myself. Thank you.
Speaker 1: Once again, that does conclude today's conference. We thank you all for your participation.
Once again that does conclude today's conference. We thank you all for your participation you may now disconnect.
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Thanks.