BEASLEY MEDIA INITIATES 7% STAFF LAYOFFS

[MWmetalhead]

Unlikely, except for perhaps one or more of the translators.

Beasley, if it needs to raise cash prior to entering chapter 11, is more likely to look to divest stations in New Jersey, its crappy standalone AM in Atlanta, or stations in the puny Augusta, GA and Fayetteville, NC markets.

[Paul Richards]

Unlikely, except for perhaps one or more of the translators.

Beasley, if it needs to raise cash prior to entering chapter 11, is more likely to look to divest stations in New Jersey, its crappy standalone AM in Atlanta, or stations in the puny Augusta, GA and Fayetteville, NC markets.

Do you think Beasley would at least bring a working format to 105.9? Like Classic Soul?

[A1B1C1D1]

I am no bankruptcy expert but the bondholders seem fine getting dimes on the dollar so a hedge fund will control it out of bankruptcy. My guess would be they think it is cheaper then having a law firm sell it piecemeal.

[MWmetalhead]

Unlikely, except for perhaps one or more of the translators.

Beasley, if it needs to raise cash prior to entering chapter 11, is more likely to look to divest stations in New Jersey, its crappy standalone AM in Atlanta, or stations in the puny Augusta, GA and Fayetteville, NC markets.

Do you think Beasley would at least bring a working format to 105.9? Like Classic Soul?

They don't program such a format anywhere in the company, to my knowledge.

WDMK seems to shift its music leanings every year or two. I think the latest such shift just occurred.

For the past couple years, it had unreasonably high song overlap with The Bounce.

In response to the station's pitiful ratings, it seems to have very recently shifted to a playlist that actually matches the station's "Smooth R&B and Old School" positioner. I've heard five straight songs that WMGC does not play. The muddy audio processing has also been cleaned up, it appears. I'll keep listening for another twenty minutes.

[MWmetalhead]

Sat through about a dozen songs. Only heard one song that The Bounce also plays. Most of the music was soft R&B released within the past 20 years. Oldest song I heard was from 1982 (You Dropped a Bomb on Me by The Gap Band).

Will be interesting to see if 105.9 witnesses any sort of ratings rebound in the months ahead.

[MWmetalhead]

Beasley's 10Q report was filed yesterday afternoon.

They received $6.0 million cash from sale of their investment in BMI in first quarter, so even though a semi-annual interest payment on their $267 million in senior secured notes was made in the period (in February), cash on hand improved from $26.7 million at 12-31 to $27.8 million at 3-31.

The notes mature February 2026. I think the company will have sufficient cash to operate between now and then, but a massive chunk of that debt will need to be forgiven or discharged in some form or fashion. The company might not reach $10 million in Adjusted EBITDA on the full year. Interest expense by itself runs them close to $23 million a year. As a point of comparison, their Adjusted EBITDA in fiscal 2023 was just north of $20 million and in fiscal 2022 was close to $26 million.

I think a larger wave - perhaps a couple larger waves - of expense reductions are yet to come. Beasley's recurring operating cash flow is so awful right now that it is my view that asset liquidation value is higher than NPV of discounted unlevered future cash flow (I think the latter is less than $100 million all day long). In other words, the company's "right to exist" in a financial sense is in doubt. Luckily for Beasley, they have no notes indenture covenant defaults at present and a decent amount of cash, so debt holders have no ability right now to force the issue.

I suspect one or more directors with financial restructuring expertise will be added to the Board later this year. The current BoD composition is a joke - one big echo chamber:

https://bbgi.com/board-of-directors/

[TC Talks]

I know he's talking about valuation, but I love Buffet's discussion of EBITDA...

https://youtu.be/Y8816-r28SM?si=wGsb-PLnpbSw_l8N

[MWmetalhead]

He's right in that Adjusted EBITDA (a non-GAAP term commonly used in earnings releases and the like) can be easily manipulated through things such as add backs for "pro forma cost savings synergies" and other B.S.

Beasley's methodology is clean and includes no such B.S. from what I can see.

He is also right from the vantage point that maintenance capex needs should be considered. Those cash outlays are essential for maintaining earnings.

A properly constructed EBITDA valuation multiple developed via discounted cash flow analysis will consider such things. Assumptions can always be manipulated in a biased way, so such analyses should always be reviewed in a diligent manner.

[TC Talks]

How can you tell Beasley has clean methods?

[MWmetalhead]

Look at their 10K and 10Q filings. No bizarre things are being included in Adjusted EBITDA. In first quarter, they correctly deduct the non-recurring sale proceeds from divestment of their BMI interest.

Where I take umbrage is with Caroline's rosy remarks on the earnings release. She could be exposing the company to shareholder lawsuits.