jmtillery said:
92.3 & 100.1
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92.3 & 100.1
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upstate29651 said:
Both of those stations come back as being licensed to Scott Savage, Receiver.
He is the receiver for TAMA, not PAMAL.
So I believe that is what you're thinking of. I know for a fact, Pamal does not own stations in Savannah.
ThatGuyOnTheRadio said:
I stand corrected.
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If Pamal and Tama combine, it would be Tamal......... ;D
Pamal must have wanted to get out of town real bad! The sales agreement is posted on FCC site under WDVH-AM. A quick look shows they are selling the seven stations for $2.55 million plus non-compete payment of $300,000. The building off Tower Road is being sold separately so don't know how much that will be. I assume they have a lot of expensive equipment inside.
I want to say they paid about $7 million for the nine stations before the economy tanked. They were trading sales between related companies a few years ago for $8 million.
I want to say they paid about $7 million for the nine stations before the economy tanked. They were trading sales between related companies a few years ago for $8 million.
So... 7 stations for $3,386,000 including real estate. Just for fun, let's play with numbers.
If that represented 6X BCF, it would mean that they were spinning off about $600K in cash flow. If we figure an operating margin around 25 percent (not an award-winning profit margin in radio clusterland, but a logical guess) it would translate to around $2.4 million in ad revenue, presumably from 2010.
So, what's that? Maybe $1.5 million from WTMG... a half-million from The Buzz... and an average of 80 grand each (that's $6,666 a month) from the other five?
Where's Mark? We need an expert. Think this is close? Or should we back out the RE and do the math on the $2.55MM?
If that represented 6X BCF, it would mean that they were spinning off about $600K in cash flow. If we figure an operating margin around 25 percent (not an award-winning profit margin in radio clusterland, but a logical guess) it would translate to around $2.4 million in ad revenue, presumably from 2010.
So, what's that? Maybe $1.5 million from WTMG... a half-million from The Buzz... and an average of 80 grand each (that's $6,666 a month) from the other five?
Where's Mark? We need an expert. Think this is close? Or should we back out the RE and do the math on the $2.55MM?
Jeff said:
I don’t know the original acquisition price Pamal paid for the nine station group in 2000 and 2001; However the original single station acquisition price for WTMG in 2001 was $4 million. When Pamal later assigned all nine stations to Pamal’s subsidiary entity JABLAMO, LLC, headed by James Morrell’s daughter, Amber, the group acquisition price was $8.5 million. JABLAMO later re-assigned the group to Pamal's current Gainesville cluster licensee subsidiary entity 6 Johnson Road Licenses, Inc.
Jeff said:
That is the county’s Ad valorem assessed property tax value that is used to calculate property value for property tax purposes. Although this is a good benchmark in which to determine property value, it does not take into account the building’s cash flow from leases from various tenants who lease office space in the Pamal building. When the leases are factored in, the overall total property value should be much higher than the assessed value unless the building is essentially empty.
Jeff said:
Yes they did. And unless there is already a contract for sale pending, WRGO is for sale once again with an asking price in the $700k range. Dick Pope and Lou Cerra sold WZCC-AM Cross City along with 5-arces and the AM tower for, I believe, somewhere in the neighborhood of $65k.
Jeff said:
Where did you see that on the FCC website?
jmtillery said:
WRGO has got to be a tough station to operate. Between the low population it covers (compared to the G/O and Tampa stations) and the drop in visitors post BP oil spill.
Trouble is, (and if KMagrill sees this, he can correct me) I'm pretty sure RGO is stuck where it is and not able to move much closer to GNV or Ocala.
ThatGuyOnTheRadio said:
Go to www.fcc.gov. Click Search located near the top of the page. Then on the left hand side, click AM Query. Then type WDVH in the call letter search. Once the page populates, click on Application List. From there click the very last filing found at the top of the listing under Accepted for Filing. The online application will then populate. Scroll towards the bottom of the application till you see on the left hand side, hi-lited in blue, the Asset Purchase Agreement link. Click that link and the actual APA will populate complete with the selling price.
Ah, ok. thanks Mark!
redneckriviera said:
RNR - Although any income from office space lease agreements with various tenants does contribute to the overall bottom line on the income statement, same as any tower space lease income, I would not factor said lease income in the station(s) FMV since the lease income is not broadcast cash flow but would rather fall under the heading of NTR. In fact unless MARC Radio Group, LLC is the buyer of the building and associated real estate, the leases cannot be factored at all as that belongs to whatever entity is buying the real property.
Aside from that, I would not argue nor debate your assessment. A twenty-five percent operating margin is probably fairly close to the actual cost in operating these stations. I don’t have the exact figures; However my best cognitive business hypothesis is the AM stations are operating at a capital loss while the profitable signals are the three Gainesville FM stations with the most BCF coming from WTMG. Following WTMG, WKZY most likely is coming in second and WHHZ coming in last place.
WDVH-FM covers COL Trenton, Chiefland and most of Dixie County and is also a simulcast of WDVH-AM Gainesville, so these two stations are sold in combo. Considering WDVH-FM does not cover Gainesville nor Ocala, I seriously doubt WDVH-AM/FM is producing any kind of meaningful ad revenues. It is my opinion that if you pull WTMG, WKZY and WHHZ out of the equation, you have a group operating at a capital loss.
WKZY and WHHZ have a good signal here into the Live Oak/Lake City area. Although it's not Gainesville, I know both stations have many listeners up here. The Live Oak/Lake City local stuff IMO is garbage. WHHZ is very popular up here since the demise of Rock 104. WDVH barely scratches in the bottom of the radio and WTMG won't come in at all in this area.
WDVH and WTMG are both class A stations, so 15-20 miles is about all you can get out of them. WKZY and WHHZ are C1 and C2 with more height and a lot more power. The issue is that Gainesville/Ocala already has a lot of signals available, so people simply won't make an effort to listen to stations with marginal signals.
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