Beasley Reports 2002 Financial Results

three- and twelve-month periods ended Dec. 31, 2002. The company

also announced a non-cash adjustment to earnings per share for the

2000, 2001 and first quarter of 2002 periods due to the correction of

an error in certain deferred tax assets.

For the three months ended Dec. 31, 2002, consolidated net

revenue rose 7.5 percent to $32.7 million from $30.4 million in the same

period of 2001. Broadcast Cash Flow (BCF) rose 7.6 percent to $10.6 million

from $9.9 million in the year-ago period. After-tax cash flow (ATCF)

rose 27.2 percent to $5.4 million, or $0.22 per diluted share, from

$4.3 million, or $0.18 per diluted share, in the year-ago fourth

quarter.

On a same-station basis, consolidated net revenue rose 9.7 percent to

$32.7 million from $29.8 million in the fourth quarter of 2001. BCF on

a same-station basis increased 8.3 percent to $10.6 million, from

$9.8 million in the same period of 2001.

For the fourth quarter of 2002, the company reported net income of

$3.2 million, or $0.13 per diluted share, compared to a net loss of

$3.5 million, or $(0.15) per diluted share, in the fourth quarter of

2001. Results for the fourth quarter of 2002 reflect the January 1,

2002 adoption of Statement of Financial Accounting Standards (SFAS)

No. 142, "Goodwill and Other Intangible Assets," which eliminated the

amortization expense for goodwill and broadcast license assets. Had

SFAS No. 142 been in effect during the fourth quarter of 2001, the

Company would have reported an adjusted net loss of $0.1 million, or

$(0.01) per share. Results for the fourth quarter of 2002 also

reflect: a $0.6 million reduction in interest expense primarily due to

a reduction in the company's borrowings under its credit facility; an

unrealized gain on the change in fair value of the company's

derivative financial instruments of approximately $0.3 million; and, a

gain of approximately $0.6 million on the sale of investments.

Results for the 2001 fourth quarter include other non-operating

expenses totaling approximately $1.0 million, as well as an unrealized

loss on the change in fair value of the company's derivative financial

instruments of approximately $0.2 million. Per share results for the

fourth quarters of 2002 and 2001 are based on 24,306,892 and

24,295,000 diluted shares outstanding, respectively.

George G. Beasley, chairman and chief executive officer, said, "In the fourth quarter, Beasley delivered its largest

quarterly same-station revenue gain since 2000 with the help of

double-digit revenue increases at our Philadelphia, Las Vegas and

Augusta clusters. Steadily improving revenues throughout the year,

combined with a 5.5 percent reduction in station operating expense, helped us

achieve our goals of growing cash flow, expanding our BCF margin,

paying down debt and reducing interest expense in 2002. As with other

advertisers and broadcasters, we are watching world events very

closely as 2003 unfolds, and we will continue our efforts to

competitively position our company for any economic and advertising

climate that prevails."

During the first quarter of 2002, the company recorded a $705,823

adjustment to its deferred tax assets and deferred income tax expense

as a result of the completion of the company's 2001 income tax

returns. However, during the 2002 fourth quarter, it was determined

that the adjustment should have been recorded in prior periods. The

non-cash adjustment corrects the company's deferred tax assets and

liabilities recorded upon conversion from a series of subchapter S

corporations, partnerships and limited liability companies to a

subchapter C corporation at the time of the company's initial public

offering of common stock on Feb. 11, 2000. For the year ended

Dec. 31, 2000, the adjusted net loss was decreased by $1,083,240,

or $0.05 per share, while deferred tax assets were increased by

$705,823 and other receivables were increased by $377,417. For the

year ended December 31, 2001, the adjusted net loss was increased by

$377,417, or $0.01 per share, while deferred tax assets and

stockholders' equity were increased by $705,823. For the three months

ended March 31, 2002, the net loss was increased by $705,823, or $0.03

per share. As a result, the company will restate its financial

statements for the years ended December 31, 2000 and 2001, as well as

for the first quarter of 2002. These restatements do not affect

previously reported revenue, BCF, EBITDA, or ATCF for the

above-mentioned periods.

For the twelve months ended Dec. 31, 2002, consolidated net

revenue declined 0.4 percent to $114.7 million from $115.1 million in 2001,

an amount which included $4.4 million of revenue from the company's

two divested New Orleans stations, as well as $2.1 million in

barter-related Internet revenue. BCF rose 12.4 percent to $36.8 million from

$32.8 million in 2001. ATCF increased 34.1 percent to $18.5 million, or $0.76

per diluted share, compared to $13.8 million, or $0.57 per diluted

share, in 2001.

On a same-station basis for the twelve months ended Dec. 31,

2002, net revenue increased 2.3 percent to $114.6 million from $112.0 million

in 2001. BCF on a same-station basis rose 14.9 percent to $36.7 million from

$31.9 million in 2001.

The company reported a net loss of $3.7 million, or $(0.15) per

diluted share, in 2002, compared to a net loss of $22.1 million, or

$(0.91) per diluted share, in 2001. The 2002 net loss reflects the

adoption of SFAS No. 142, including the effect of a non-cash,

after-tax impairment charge taken in the first quarter of 2002

totaling $12.1 million, or $0.50 per diluted share, pertaining to the

write-down of certain intangible assets; a reduction in interest

expense primarily due to a reduction in the company's borrowings under

its credit facility; a loss on the extinguishment of long-term debt; a

reduction in non-operating expenses; a gain on the sale of

investments; and, an unrealized gain on the change in fair value of

the company's derivative financial instruments. The 2001 net loss

reflects an impairment loss on long-lived assets from the sale of two

FM stations in New Orleans totaling $7.0 million, higher amortization

expense, a loss on investment and a gain on related party receivable,

as well as an unrealized loss on the change in fair value of the

Company's derivative financial instruments. Per share results for the

years ended December 31, 2002 and 2001 are based on 24,312,899 and

24,303,019 diluted shares outstanding, respectively.

For the first quarter ending March 31, 2003, the company

anticipates reporting actual revenue of approximately $24 million, BCF of approximately $6.5 million and Free Cash Flow

(FCF) per diluted share of $0.00.

On a same-station basis for the first quarter (comparing

stations operated by the company at March 31, 2003 to those

same stations operated by the company at March 31, 2002) the

company expects revenue to decrease 3 percent against year-ago

levels and BCF to decrease 5 percent.

Founded in 1961, Beasley Broadcast Group is a radio

broadcasting company that owns or operates 41 stations (26 FM and

15 AM) located in 10 large- and mid-size markets in the United

States.