Beasley Sells Detroit Translator

[AMFMTV]

Beasley Media Group has sold 93.5 W228CJ Detroit to Birach Broadcasting for $450,000.

https://radioinsight.com/headlines/3566 ... ranslator/

[MWmetalhead]

This is probably a win-win.

Beasley unloads a translator that generates minimal to zero revenue.

Birach picks up a translator with excellent signal strength across Dearborn, Hamtramck, Detroit and surrounding communities with sizable middle eastern populations. This will allow WNZK to compete more effectively against CINA-FM from Windsor, which attracts a lot of listening & ad dollars from the Arabic population in SE Michigan.

It's probably only a matter of time before Beasley terminates its LMA of 99.1.

[hb2]

Hey, Birach is getting out of the stone age with the new leadership (presumably by the family) of having their entire ownership portfolio being strictly AM stations (and at least in SE Michigan- no translators or FM simulcasts on any station). Good for them. I can't pick up the translator at my location but WNZK is among the strongest signals in this market and that is quite easy to pick up.

As for W256EA/99.1- that thing can just go away. At my location it is likely blocking signals otherwise recievable during tropo events.

But one thing that may ultimately happen to 99.1, since WCSX HD2 flipped to country a few months back, without a translator, it may go back to WCSX HD2 and be country. We'll see...

[MWmetalhead]

But one thing that may ultimately happen to 99.1, since WCSX HD2 flipped to country a few months back, without a translator, it may go back to WCSX HD2 and be country. We'll see...

I agree with that being a possibility.

[MWmetalhead]

Beasley continues to have major earnings challenges.

After removing one-time gains from station sales, the company lost about $9 million in the first quarter. EBITDA was in the ballpark of -$3.5 million after removal of one-time items. That means the company is already "in the hole" before one even considers debt service and capital investment needs!

Beasley needs to continue to sell lesser performing assets, and unfortunately, they are going to need to undertake additional RIFs.

First quarter is almost always the lightest quarter of the year in terms of revenue generation for radio, but those are still poor results. (Fourth quarter due to holiday shopping advertising is obviously strongest.)

In 2025, for the full year, EBITDA after removal of one-time items was under $1 million. That comes nowhere close to covering the almost $17 million in interest payments made in 2025.

In 2026, debt service will probably be closer to $12 million given the distressed debt exchange completed earlier this year, which wiped out about $92 million in second lien debt.

I will say their share price is not insane given the effects from the debt exchange completed earlier this spring. Whether or not its equity is truly worth the current $38 million market cap is a highly speculative question. They now have about $130 million of debt outstanding plus a $35 million undrawn ABL facility and market cap is currently near $38 million (there are only 1.8 million common shares outstanding). On a fair market valuation basis, all of their radio stations might conceivably be worth $200 million. However, so long as the company continues to operate and burn cash, it will either need to (a) borrow more debt or (b) sell assets to raise cash, either of which is dollar-for-dollar dilutive to share value. Also, while the company continues to sit on FM licenses, value could further deteriorate with time given overall industry weakness, which has been the clear trend dating back to the Great Recession if not before.

[Casey]

Is the 99.1 translator actually owned by Smile FM?

[MWmetalhead]

Yes, W256EA's license is owned by an affiliated entity based on my review of FCC data.

[Casey]

Yes, W256EA's license is owned by an affiliated entity based on my review of FCC data.

That explains Smile on 94.7 HD3.

[hb2]

I never realized W256EA was owned by Smile FM. Always thought it was owned by Beasley. Interesting

[edj]

WNZK was always Birach’s cash cow so this makes sense.

What kind of costs are involved in switching from 690 to 680 at sundown? Some AM stations drastically reduce power after getting an FM translator, usually by going to one tower and selling the rest. Could Sima’s kids eventually go this route?

[ProducerXM]

Seems it could have been an opportunity for Audacy.

[NESNerd427]

I've taken over as the in-market engineer for the Birach Detroit cluster. As of right now, none of the AMs are lowering power or going dark because of the translators. Sima did work out a deal in Chicago to get WNWI on FM, and he's definitely looking to get more for other markets. In Detroit, only WNZK is getting a translator, but that may change as more FMs go up for sale. We're definitely hoping to score one for WPON.

Side note, I am working with Sima to flip WCXI to an actually good and profitable format instead of Brother Cult, but that's a work in progress.

[edj]

I've taken over as the in-market engineer for the Birach Detroit cluster. As of right now, none of the AMs are lowering power or going dark because of the translators. Sima did work out a deal in Chicago to get WNWI on FM, and he's definitely looking to get more for other markets. In Detroit, only WNZK is getting a translator, but that may change as more FMs go up for sale. We're definitely hoping to score one for WPON.

Side note, I am working with Sima to flip WCXI to an actually good and profitable format instead of Brother Cult, but that's a work in progress.

Congratulations on the new gig!

Are the checks clearing for WCXI? I know that was the big deal for Sima. Do the kids have a different philosophy? I’d love to see WCXI and WPON swap frequencies- where I live the former is decent during the day and the latter is very scratchy. Both are essentially useless at night due to low power and WYLL’s 50,000 watts.

[Casey]

During the 60s and 70s Detroit had an ethnic station on FM it was owed by Booth Broadcasting. Booth had WJLB 1400 AM and the Station of the Nations WMZK 97.9 FM. In 1980 Booth switched WJLB to 97.9 and WMZK to 1400. As they say the rest is history.

[NESNerd427]

I've taken over as the in-market engineer for the Birach Detroit cluster. As of right now, none of the AMs are lowering power or going dark because of the translators. Sima did work out a deal in Chicago to get WNWI on FM, and he's definitely looking to get more for other markets. In Detroit, only WNZK is getting a translator, but that may change as more FMs go up for sale. We're definitely hoping to score one for WPON.

Side note, I am working with Sima to flip WCXI to an actually good and profitable format instead of Brother Cult, but that's a work in progress.

Congratulations on the new gig!

Are the checks clearing for WCXI? I know that was the big deal for Sima. Do the kids have a different philosophy? I’d love to see WCXI and WPON swap frequencies- where I live the former is decent during the day and the latter is very scratchy. Both are essentially useless at night due to low power and WYLL’s 50,000 watts.

Thanks edj!

The Overcomer Ministry is losing funding and donations by the day. It took a while, but I think people are finally realizing that it's a manipulative cult. Morals aside, they don't have money anymore and have dropped out of several stations, mostly shortwave. I spoke with Sima about it when he was in town, and he sounded totally on board with doing a format flip for WCXI. Just need to set up a meeting and we'll see what happens.

As for his kids/grandkids, Phil (from The Early Risers Club on 'PON and good friend of mine) got a chance to speak with them at Sima Senior's funeral. They were all totally on board with keeping the stations up and going, and I fully believe that Junior is going to get rid of the garbage programming and make profitable stations to leave to the kids and grandkids. WCXI is just the first step in that process.

For the format/frequency swap, I don't think that's going to happen, but we can at least try for a power increase. As I said in another topic, a lot of the surrounding stations and frequencies are now vacant, like 1470 WFNT. Because of that, I think the FCC could give both a day and/or night bump. I'm going to set up a meeting soon with him to figure it all out, so we'll see.