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Beasley Broadcast Group names new CFO as Tedesco retires

Published 10/24/2024, 07:12 AM
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NAPLES, Fla. - Beasley Broadcast Group, Inc. (NASDAQ: NASDAQ:BBGI), a media company that operates radio stations across the United States, has announced the appointment of Lauren Burrows Coleman as its new Chief Financial Officer. The change will take effect on November 1, 2024, following the retirement of long-serving CFO Marie Tedesco, who has been with the company for 33 years.

Lauren Burrows Coleman comes to Beasley with a wealth of experience, having previously held the position of Global Head of Strategic Corporate and Commercial Finance at Wayfair (NYSE: NYSE:W). In her role at Wayfair, she led a team responsible for various financial functions including planning, commercial finance, and global tax strategies. Her career spans leadership roles at private equity firms WindSail Capital Group and Wind Point Partners, as well as managing investments at GE Capital. Coleman began her career in investment banking at Lehman Brothers, focusing on communications and media.

Caroline Beasley, CEO of Beasley Broadcast Group, expressed enthusiasm about Coleman's appointment, highlighting her "extensive and diverse experience" and leadership skills as key assets to drive the company's future growth.

Coleman, an MBA graduate from Harvard Business School and holder of an A.B. cum laude from Dartmouth College, is set to replace Tedesco, who has been credited with significantly shaping the company during her tenure. Caroline Beasley praised Tedesco's integral role and lasting impact on the organization, acknowledging her "unwavering commitment, hard work, and leadership."

Beasley Broadcast Group operates radio stations in major U.S. markets including Atlanta, Boston, Detroit, and Philadelphia, offering integrated marketing solutions across audio, digital, and event platforms. The company's stations reach approximately 20 million listeners weekly, with a strong digital presence engaging millions more through various platforms.

This transition is based on a press release statement from Beasley Broadcast Group, Inc.

In other recent news, Beasley Broadcast Group has confirmed a 1-for-20 reverse stock split of its Class A and Class B common stock. The strategic move is meant to increase the per-share trading price of the company's common stock, potentially regaining compliance with Nasdaq's minimum bid price requirement. This corporate action was detailed in the company's definitive information statement filed with the U.S. Securities and Exchange Commission.

Equiniti Trust Company, LLC will serve as the transfer and exchange agent for this reverse stock split. It's important to note that the split will not affect the par value of the common stock or the authorized shares, and stockholders' percentage ownership and voting power will remain relatively unchanged.

In financial developments, Beasley Broadcast Group reported mixed results for its second-quarter 2024 earnings. Total revenue saw a decline of 4.8%, and same-station revenue decreased by 2%. However, digital revenue increased by 10.2%, now accounting for 21.5% of the total revenue. Adjusted EBITDA also rose by 11.4% to $8.8 million, indicating areas of growth amidst the challenges.

InvestingPro Insights

As Beasley Broadcast Group (NASDAQ: BBGI) prepares for a leadership transition in its finance department, investors may want to consider some key financial metrics and insights provided by InvestingPro.

According to InvestingPro data, BBGI's market capitalization stands at $20.19 million, reflecting its position as a small-cap company in the media sector. The company's revenue for the last twelve months as of Q2 2024 was $240.68 million, with a revenue growth of -6.38% over the same period. This decline in revenue aligns with one of the InvestingPro Tips, which notes that the company is "quickly burning through cash."

Another InvestingPro Tip highlights that BBGI is "trading at a low Price / Book multiple." Indeed, the Price / Book ratio for the last twelve months as of Q2 2024 is reported at 0.14, suggesting the stock may be undervalued relative to its book value. This could be of interest to value investors, especially considering the upcoming leadership change in the CFO position.

However, potential investors should also be aware that BBGI "operates with a significant debt burden" and "suffers from weak gross profit margins," as indicated by additional InvestingPro Tips. The gross profit margin for the last twelve months as of Q2 2024 was 14.89%, which may be a concern for the incoming CFO to address.

It's worth noting that InvestingPro offers 8 additional tips for BBGI, providing a more comprehensive analysis for investors considering this stock. These insights could be particularly valuable as the company navigates through its leadership transition and seeks to improve its financial performance in the competitive media landscape.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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