Beasley Broadcast Group (BBGI) reports higher than expected revenues and EPS

Beasley Broadcast Group (ticker: BBGI) reported results on May 2, 2005 for
the first quarter 2005.

Results 1Q05 vs. 1Q04:

• EPS: $0.07 vs. $0.01 (+600%)
• Consensus EPS was $0.05
• Revenue: $28.6M vs. $26.1M (+10%)
• Consensus revenue was $28.34M
• Operating income: $4.1M vs. $4.7M (-13%)
• Operating margin: 14.3% vs. 18% (-370bps)
• Net income: $1.6M vs. $0.2M (+700%)
• Net margin: 5.6% vs. 0.8% (+480bps)
• Cash: $17.1M vs. $14.9M (+15%)
• Station Operating Income: $6.6M vs. $7.1M (-7%)

2Q05 Guidance

• Revenues: +5%
• Revenues guidance is in-line with current consensus estimate of $32.6M
• Expected strength in the Philadelphia market

Quick comments:

• 1Q05 revenues grew 10%, which was the top end of its recently revised guidance of 8-10%
• Station operating expenses increased 16%, which was above its revised 8-10% range
• BBGI expects to convert 50%+ of its stations to HD Radio by year-end 2005