Argyle Television releases quarterly results.

SAN ANTONIO--(BUSINESS WIRE)--Nov. 6, 1996--Argyle Television Inc. (NASDAQ:ARGL) Wednesday announced third-quarter and nine-month operating results for the period ending Sept. 30, 1996.

Total revenues for the three-month period ending Sept. 30, 1996, were $17.4 million, up 32.7 percent from total revenues of $13.1 million for the three-month period ending Sept. 30, 1995; total revenues for the nine-month period ending Sept. 30, 1996, were $51.5 million, up 60.5 percent from total revenues of $32.1 million for the nine-month period ending Sept. 30, 1995.

Broadcast cash flow for the 1996 three- and nine-month periods was $7.4 million and $21.2 million, respectively (a 26.3 percent increase and a 53.2 percent increase over the three- and nine-month periods in 1995, respectively), and earnings before interest, tax, depreciation and amortization (EBITDA) for the 1996 three- and nine-month periods were $5.8 million and $17.7 million, respectively (a 9.1 percent increase and a 42.6 percent increase over the three- and nine-month periods in 1996, respectively).

Pro forma total revenues for the three- and nine-month periods ending Sept. 30, 1996, were $17.4 million and $53.1 million, respectively (a 6.8 percent and a 3 percent increase over the three- and nine-month periods in 1995, respectively).

Adjusted pro forma cash flow for the three- and nine-month periods ending Sept. 30, 1996, was $7.6 million and $23.4 million, respectively (a 10.6 percent increase and an 11.2 percent increase over the three- and nine-month periods in 1995, respectively).

Pro forma total revenues and adjusted pro forma broadcast cash flow assume that each of the television stations currently owned by Argyle were acquired at the beginning of each respective period. Adjusted pro forma broadcast cash flow also gives effect to increased revenues and reduced expenses attributable to a recent transaction and the addback of certain ramp-up expenses incurred as a result of the expanded news programming at WGRZ.

Bob Marbut, Argyle's chairman and chief executive officer, commented on the company's performance: "We are pleased with our third-quarter and year-to-date results, particularly in comparison with the results of other public broadcast companies that do not have a heavy NBC affiliate mix.

"We have owned each of our stations for less than two years and believe that much of the building and reinvestment in people, systems, technology, programming and competitiveness has been completed. Already, we're seeing the benefits of these turnaround efforts and expect the next few quarters to reflect similar positive trends."

Blake Byrne, president and chief operating officer, commented further on the operational turnaround of the stations acquired by Argyle since the beginning of 1995: "While we continue to make improvements to the stations in all areas -- including cost control, sales training, programming, news, promotional and branding strategies, and the support of all areas with cost-effective capital investment -- the successful integration of the stations Argyle has accumulated over the last two years has largely been accomplished.

"Specifically through the third quarter, we have:

-- Substantially achieved our original objective for all stations of improving the quality and competitiveness of the programming lineup in a manner consistent with our philosophy of individual strategies in each market that focus on customer needs and competitive realities, coupled with daypart profitability;

-- Enhanced local news capability at our stations -- adding significant personnel and other resources at WGRZ in Buffalo and launching a 5:30 a.m. -- 7 a.m. newscast in September, investing in weather upgrades at WZZM in Grand Rapids and WAPT in Jackson; and planning a launch in the first quarter of 1997 of the first locally produced 10 p.m. newscast in the Providence market on WNAC;

-- As a result of intensive strategic planning, established unique identities for our stations through the development and implementation of market-tailored promotional and branding strategies.

"Additionally, we are nearing the end of a very successful 18-month program during which we will have invested $10 million in capital in these stations to improve signal strength, the on-air look and operating efficiency," Byrne continued.

On Aug. 12, 1996, Argyle announced that it was exploring strategic alternatives to achieve for the Argyle station group the benefits of the television broadcast industry's current consolidation.

Since this announcement, Argyle has had -- and continues to have -- discussions with various third parties about strategic alliances and other alternatives, but to date no agreements have been reached regarding any transaction. Argyle intends to continue to explore strategic alternatives that would best serve the company and its shareholders.

Argyle Television owns and operates network-affiliated television stations WZZM-TV, the ABC affiliate in Grand Rapids, Mich.; WGRZ-TV, the NBC affiliate in Buffalo, N.Y.; WNAC-TV, the Fox affiliate in Providence, R.I.; KITV-TV, the ABC affiliate in Honolulu; WAPT-TV, the ABC affiliate in Jackson, Miss.; and KHBS-TV, the ABC affiliate in Forth Smith, Ark., and its satellite KHOG-TV, the ABC affiliate in Fayetteville, Ark.

Argyle's Series A common stock trades on the NASDAQ National Market System under the symbol ARGL.

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Discussion of Financial Results

Historical Results

The historical results for the three and nine months ended Sept. 30, 1996, for the company (WZZM, WAPT, KITV and WGRZ; Arkansas Stations from June 1 to Sept. 30; WNAC from Jan. 1 to June 30; and the company's share of broadcast cash flows from the joint marketing and programming agreement with Clear Channel ("Clear Channel Venture") for the three months ended Sept. 30), compared with three and nine months ended Sept. 30, 1995, for the company (WZZM, WNAC, WAPT and KITV from June 13 to Sept. 30).

The company receives 50 percent of the combined broadcast cash flows of the company's WNAC and WPRI, a CBS affiliate located in Providence owned by Clear Channel Communications Inc. The company records its share of the Clear Channel Venture broadcast cash flows in total revenues, which affects the comparability of total revenues with prior periods, accordingly.

Total revenues for the three months ended Sept. 30, 1996, were $17.4 million, up 32.7 percent from total revenues of $13.1 million for the three months ended Sept. 30, 1995. Total revenues for the nine months ended Sept. 30, 1996, were $51.5 million, up 60.5 percent from total revenues of $32.1 million for the nine months ended September 1995.

The increase in three- and nine-months total revenues can be attributed primarily to the acquisitions of KITV in June 1995, WGRZ in December 1995 and the Arkansas Stations in June 1996, which, together, added $5.3 million and $20.9 million in total revenues for the respective 1996 periods.

Total revenues for WZZM, WAPT and KITV increased by $0.5 million for the quarter, mainly due to an increase in local advertising sales. These revenue gains were offset by the Clear Channel Venture initiated during the quarter, which accounts for a $1.2 million decrease in recorded total revenues. Also, the Northstar Stations and KITV experienced a slight decrease in non-cash trade and barter revenues for the quarter.

For the three months ended Sept. 30, 1996, broadcast cash flow was $7.4 million, a 26.3 percent increase over $5.9 million for the three months ended Sept. 30, 1995, and EBITDA was $5.8 million, a 9.1 percent increase over $5.3 million for the 1995 period.

For the nine months ended Sept. 30, 1996, broadcast cash flow was $21.2 million, a 53.2 percent increase over $13.8 million for the nine months ended Sept. 30, 1995, and EBITDA was $17.7 million, a 42.6 percent increase over $12.4 million for the 1995 period.

The improvement in the third quarter and year-to-date broadcast cash flow and EBITDA can be attributed primarily to the addition of KITV in June 1995, WGRZ in December 1995 and the Arkansas Stations in June 1996. Also, the increase in EBITDA is offset by an increase in third-quarter corporate general and administrative expenses due in part to incentive compensation.

Broadcast cash flow margins for the three- and nine-month periods ended Sept. 30, 1996, were 42.5 percent and 41.2 percent, respectively, vs. 44.7 percent and 43.1 percent for the same periods during 1995. EBITDA margins for the three- and nine-month periods ended Sept. 30, 1996, were 33.1 percent and 34.3 percent, respectively, vs. 40.3 percent and 38.7 percent for the same periods during 1995.

These decreases are primarily due to the acquisition of the lower-margin Arkansas Stations and, to a lesser extent, a decrease in non-cash trade and barter revenues net of expenses.

Pro Forma Results

The combined historical results for the three and nine months ended Sept. 30, 1996, for WZZM, WAPT, WNAC, KITV, WGRZ and the Arkansas Stations, including the elimination of certain expenses that would have been eliminated under the company's management and other combining adjustments, compared with the combined historical results for the three and nine months ended Sept. 30, 1995, for the same stations, including combining adjustments as if all acquisitions had occurred at the beginning of the respective periods.

For comparability purposes, broadcast cash flows for WNAC have been included in total revenues for all periods.

On a pro forma basis, total revenues for the three months ended Sept. 30, 1996, were $17.4 million, up 6.8 percent from $16.3 million for the three months ended Sept. 30, 1995. On a pro forma basis, total revenues for the nine months ended Sept. 30, 1996, were $53.1 million, up 3 percent from $51.6 million for the nine months ended Sept. 30, 1995.

These increases can be attributed primarily to an increase in political advertising, an increase in local advertising sales and an increase in network compensation resulting from renegotiation of network affiliation agreements at four of the company's six stations to date.

These revenue gains were offset by a modest decrease in national advertising. No pro forma effect is given to anticipated future network compensation increases earned due to improved performance at certain stations.

For the three months ended Sept. 30, 1996, adjusted pro forma broadcast cash flow was $7.6 million, a 10.6 percent increase over $6.9 million for the three months ended Sept. 30, 1995. For the nine months ended Sept. 30, 1996, adjusted pro forma broadcast cash flow was $23.4 million, an 11.2 percent increase over $21 million for the nine months ended Sept. 30, 1995.

This improvement is attributable to the increased revenues described above, control of operating expenses and renegotiation of programming contracts. Such improvement was offset by a decrease in non-cash trade and barter revenues net of expenses. For the three months ended Sept. 30, 1996, adjusted pro forma EBITDA was $5.9 million, a 5.4 percent decrease over $6.3 million for the three months ended Sept. 30, 1995.

The decrease is attributable primarily to an increase in third-quarter corporate general and administrative expenses due in part to incentive compensation. For the nine months ended Sept. 30, 1996, adjusted pro forma EBITDA was $19.9 million, which is comparable to $19.6 million for the 1995 period.

Adjusted pro forma broadcast cash flow and EBITDA give effect to the increased share of revenues and reduced expenses attributable to the joint marketing and programming of WNAC and WPRI pursuant to the Clear Channel Venture as if it had been implemented Jan. 1, and the addback of certain ramp-up expenses incurred as a result of the expanded news programming at WGRZ. -0-

                        Argyle Television Inc.
                 Consolidated Statement of Operations
                            (Unaudited)

                               Three Months Ended    Nine Months Ended
                                    Sept. 30,            Sept. 30,
                                1995(a)   1996(b)    1995(a)   1996(b)
                                 (In thousands, except per-share data)

Total revenues                 $ 13,140  $ 17,439   $ 32,091  $ 51,496

Station operating expenses        6,465     9,172     15,811    27,544
Amortization of program rights      970     1,137      2,736     3,708
Depreciation and amortization     3,199     6,503      7,727    17,227
Station operating income          2,506       627      5,817     3,017

Corporate general and
 administrative expenses            573     1,636      1,428     3,503
Non-cash compensation expense       170       169        200       506
Operating income (loss)           1,763    (1,178)     4,189      (992)

Interest expense, net             3,058     4,741      7,147    12,045
Loss before extraordinary item   (1,295)   (5,919)    (2,958)  (13,037)

Extraordinary item, loss on
 early retirement of debt            --        --     (2,708)       --

Net loss                       $ (1,295) $ (5,919)  $ (5,666) $(13,037)

Less: preferred stock dividends          $   (356)            $   (474)

Net loss attributed to common
 stockholders                            $ (6,275)            $(13,511)

Loss from continuing operations
 per common share                   N/A  $  (0.55)       N/A  $  (1.21)

Number of shares used in
 calculation                        N/A    11,347        N/A    11,212

Supplemental Financial Data:
Broadcast cash flow(c)         $  5,869  $  7,415   $ 13,832  $ 21,191
Broadcast cash flow margin        44.7%     42.5%      43.1%     41.2%
EBITDA(d)                      $  5,296  $  5,779   $ 12,404  $ 17,688
EBITDA margin                     40.3%     33.1%      38.7%     34.3%
Program payments               $    806  $    852   $  2,448  $  2,761

(a)  Includes results of WZZM, WNAC and WAPT for the entire period
     and the results of KITV from June 13, 1995, through Sept. 30,
     1995.
(b)  Includes results from WZZM, WAPT, KITV and WGRZ for the entire
     period and the results of the Arkansas Stations from June 1,
     1996, through Sept. 30, 1996.  Also, includes results for WNAC
     from Jan. 1 to June 30 and results from the Clear Channel
     Venture for the three months ended Sept. 30, 1996.  Results
     from the Clear Channel Venture represent 50 percent of the
     combined broadcast cash flows of WNAC and WPRI and are included
     in total revenues.
(c)  Broadcast cash flow is defined as station operating income,
     plus depreciation and amortization, plus amortization of
     program rights, minus program payments.  Broadcast cash flow
     is presented here not as a measure of operating results and
     does not purport to represent cash provided by operating
     activities.  Broadcast cash flow should not be considered
     in isolation or as a substitute for measures of performance
     prepared in accordance with generally accepted accounting
     principles.
(d)  EBITDA is defined as operating income, plus depreciation and
     amortization, plus amortization of program rights, minus
     program payments, plus non-cash compensation expense.  EBITDA
     is presented here not as a measure of operating results,
     but rather as a measure of debt service ability.  EBITDA does
     not purport to represent cash provided by operating activities
     and should not be considered in isolation or as a substitute
     for measures of performance prepared in accordance with
     generally accepted accounting principles.

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                        Argyle Television Inc.
             Pro Forma Consolidated Statement of Operations
                            (Unaudited)

                               Three Months Ended    Nine Months Ended
                                    Sept. 30,             Sept. 30,
                                         Pro Forma            Pro Forma
                                1995(a)   1996(b)    1995(a)   1996(b)
                                 (In thousands, except per-share data)

Total revenues                 $ 16,323  $ 17,439   $ 51,588  $ 53,115

Station operating expenses        8,702     9,111     27,739    28,431
Amortization of program rights      962     1,137      2,808     3,147
Depreciation and
 amortization(c)(d)               5,706     6,336     17,128    18,074
Station operating income            953       855      3,913     3,463

Corporate general and
 administrative expenses            573     1,636      1,428     3,503
Non-cash compensation expense       170       169        200       506
Operating income (loss)             210      (950)     2,285      (546)

Interest expense, net(e)          5,066     4,887     13,745    12,549

Loss before extraordinary item   (4,856)   (5,837)   (11,460)  (13,095)
Extraordinary item, loss on
 early retirement of debt            --        --     (2,708)       --

Net loss                       $ (4,856) $ (5,837)  $(14,168) $(13,095)

Less: preferred stock
 dividends(f)                  $   (355) $   (355)  $ (1,066) $ (1,066)

Net loss attributable to
 common shareholders           $ (5,211) $ (6,192)  $(15,234) $(14,161)

Loss from continuing operations
 per common share              $  (0.46) $  (0.55)  $  (1.34) $  (1.25)

Pro forma number of common
 shares outstanding              11,347    11,347     11,347    11,347

Supplemental Financial Data:
Broadcast cash flow(g)         $  6,855  $  7,476   $ 21,047  $ 22,303
Adjusted broadcast cash flow(h)     N/A  $  7,581        N/A  $ 23,412
Broadcast cash flow margin(i)     42.0%     42.9%      40.8%     42.0%
EBITDA(j)                      $  6,282  $  5,840   $ 19,619  $ 18,800
Adjusted EBITDA(k)                  N/A  $  5,945        N/A  $ 19,909
EBITDA margin(l)                  38.5%     33.5%      38.0%     35.4%
Program payments               $    766  $    852   $  2,802  $  2,381

(a)  Amounts include the historical results of all six stations for
the three- and nine-month periods plus combining adjustments for
depreciation and amortization, corporate expenses and interest
expense, net.  For comparability purposes, WNAC broadcast cashflow
is included in total revenues for the full period (represents GAAP
accounting for the Clear Channel Venture from July 1 forward).

(b)  Amounts include the historical results of all six stations for
the three- and nine-month periods plus combining adjustments for
depreciation and amortization, corporate expenses and interest
expense, net.  Also, reflects the elimination of certain expenses at
the Arkansas Stations which would have been eliminated under the
company's management.  WNAC broadcast cashflow from Jan. 1 to June
30 and 50 percent of combined WNAC/WPRI broadcast cashflows for the
three months ended Sept. 30 are included in total revenues.

(c)  Reflects depreciation of equipment and buildings resulting from
the purchase accounting adjustments, net of depreciation already
recorded in historical financial statements.  The estimated useful
lives used for equipment range from five to 25 years, and the
estimated useful life used for buildings ranges from 25 to 39 years.

(d)  Reflects amortization of intangible assets resulting from
purchase accounting adjustments, net of amortization already
recorded in the historical financial statements.  The estimated
useful lives used for these intangible assets were as follows:  FCC
licenses -- 15 years; network affiliation agreements -- 15 years;
other intangible assets -- two to five years.

(e)  Reflects a credit to interest expense recorded in conjunction
with FASB Statement No. 119 relating to interest rate protection
agreements, interest expense on the pro forma debt, and the
amortization of deferred financing costs over the period of the
related financings.

                                              1995         1996

Senior Subordinated Notes at an
 interest rate of 9.75 percent              $10,969      $10,969
Fair value adjustments of interest
 rate protection agreements -- non-cash          --       (1,083)
Amortization of deferred financing costs        680          680
Bank Credit Agreement at an assumed
 interest rate of 8.5 percent for 1995
 and at an assumed interest rate of
 8.25 percent for 1996, net                   2,096        1,983
                                            $13,745      $12,549

(f)  Reflects preferred stock dividends relating to the preferred
stock issued in conjunction with the acquisition of the Arkansas
Stations.  The dividend calculation is shown here for purposes of
calculating loss attributable to common shareholders.

(g)  Broadcast cash flow is defined as station operating income,
plus depreciation and amortization, plus amortization of program
rights, minus program payments.  Broadcast cash flow is presented
here not as a measure of operating results and does not purport to
represent cash provided by operating activities.  Broadcast cash
flow should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with generally
accepted accounting principles.

(h)  Represents broadcast cash flow plus certain adjustments
which give effect to the increased revenues and reduced expenses
attributable to the Clear Channel Venture as if it had been
implemented Jan. 1 and to the addback of certain ramp-up expenses
incurred as a result of the expanded news programming at WGRZ.

(i)  Broadcast cash flow margin is broadcast cash flow divided by
total revenues, expressed as a percentage.

(j)  EBITDA is defined as operating income, plus depreciation and
amortization, plus amortization of program rights, minus program
payments, plus non-cash compensation expense.  EBITDA is presented
here not as a measure of operating results and does not purport to
represent cash provided by operating activities.  EBITDA should not
be considered in isolation or as a substitute for measures of
performance prepared in accordance with generally accepted
accounting principles.

(k)  Represents EBITDA plus certain adjustments which give effect
to the increased revenues and reduced expenses attributable to the
Clear Channel Venture as if it had been implemented Jan. 1 and to
the addback of certain ramp-up expenses incurred as a result of the
expanded news programming at WGRZ.

(l)  EBITDA cash flow margin is EBITDA divided by total revenues,
expressed as a percentage.

CONTACT: Argyle Television Inc., San Antonio

Bob Marbut, 210/828-1700