[BC] Satellite Radio

[David Gleason]

BCF does not contemplate capex items, as it is essentially EBITDA. Most
managers are paid on BCF, not profits, for bonus calculations.

Salaried but known-ownership managers would not be affected by capex; owners
would, but over the life of the asset. 

An average Pizza Hut does about $750 k. The average radio station, per the
studies done prior to consolidation, did about $500 k indexed to 2005 for
inflation. In the period between the 50's and 90's when some kind of
financial reports were made, less than half of all stations made a profit. 


-----Original Message-----
From: broadcast-bounces at radiolists.net
[mailto:broadcast-bounces at radiolists.net] On Behalf Of Mike McCarthy
Sent: Tuesday, July 05, 2005 12:42 PM
To: Broadcast Radio Mailing List
Subject: RE: [BC] Satellite Radio

Actually, in many manager's budgets are amortized costs for capital 
projects. Those are costs which can not be avoided. Unless your 
manager is not an owner, the "minimal" argument holds very little 
water.

What does a typical Pizza Hut bill in a year.  More or less than $500K.

> But, outside of the capital expense, which is not part of a manager's
> operating BCF budget, the additional cost of the HD operation, 
including
> license, is minimal. 
> 
> On the other hand, 60% of US radio stations bill less than the gross 
sales
> of a single Pizza Hut. 
> 
>


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