Big City Radio Reports 1998 Results, Revenues Increase 36% as Property Development Continues.NEW YORK--(BUSINESS WIRE)--March 12, 1999--Big City Radio, Inc. (AMEX AMEX See: American Stock Exchange : YFM YFM Yorkshire Fund Managers (UK) ), an owner and operator of radio stations in the three largest radio markets in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , today announced its financial results for the year ended December December: see month. 31, 1998. Gross revenues for the year ended December 31, 1998 increased 35% to $15.9 million compared with $11.7 million for the year ended December 31, 1997. Net revenues (gross revenues minus agency commission) for the year ended December 31, 1998 increased 36% to $14.2 million compared with $10.5 million for the year ended December 31, 1997. This increase was primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to increased revenues at the Company's radio stations in New York Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. in February February: see month. 1998. Same station revenue grew 25% in 1998 compared with 1997. The company reported a broadcast cash deficit from station operations for the year ended December 31, 1998 of $3.3 million compared with a deficit of $2.5 million for the year ended December 31, 1997. Net loss for the year ended December 31, 1998 was $17.5 million compared with net loss of $16.9 million for the year ended December 31, 1997. Net loss per share was $1.24 for the year ended December 31, 1998, representing an improvement of $0.53 per share compared with net loss per share of $1.77 for the year ended December 31, 1997. "Being able to achieve positive momentum in the top 3 radio markets in the U.S. supports the rationale rationale (rash´  nal´),n the fundamental reasons used as the basis for a decision or action. of our business strategy," said Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. Kakoyiannis, Big City Radio President and Chief Executive Officer. "Our strategy is to enter major markets with minimum investments, enhance the stations technically so that they cover 90% of Arbitron's ratings base and then provide ratings-driven programming that permits us to compete for advertising dollars. In 1998, we made significant progress in developing our properties into major market radio stations. "Our 1998 results reflect the initial phases of our first duopoly Duopoly A situation in which two companies own all or nearly all of the market for a given type of product or service. Notes: This is very similar to a monopoly, where only one company dominates the market. in Chicago and the addition of a new station to the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of group. In 1999, we will concentrate our efforts on enhancing our programming in Los Angeles, leveraging the solid country music ratings debut in New York into revenue growth, and implementing our technology initiatives in Chicago. We look to continue enhancing the value of our existing radio stations as we search for additional acquisitions that meet our criteria criteria (krītēr´ē  ),n. ," he concluded. Big City Radio, Inc. acquires radio broadcast properties in or adjacent to major metropolitan markets and utilizes innovative engineering techniques and low-cost, ratings-driven operating strategies to develop these properties into successful metropolitan radio stations. Big City Radio currently owns and operates radio stations in New York, Los Angeles and Chicago. Stuart Subotnick, Chairman of Big City Radio, Inc. and a general partner of Metromedia Metromedia (also often MetroMedia) was a media company that owned radio and television stations in the United States from 1956 to 1986. Overview The company arose from the ashes of the DuMont Television Network, the world's first licensed commercial television Company, is a majority shareholder of the Company's Common Stock. As the Company is in the early stage of development, the Company expects to generate significant operating and net losses as it continues to expand its presence in major markets. Management believes that its goals will be achieved through the Company's successful implementation and execution of its growth strategy. This partial discussion of the statements of financial condition and operations of the Company should be read in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with the consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge and related notes contained in the Company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended December 31, 1998, as filed with the U.S. Securities and Exchange Commission. This news release contains certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties. Factors that could cause or contribute to such risks and uncertainties include, but are not limited to, general economic and business conditions, competition, changes in technology and methods of marketing, and various other factors beyond the Company's control. This also includes such factors as described from time to time in the SEC reports filed by Big City Radio, Inc., including the most recently filed Ford 10-Q.
BIG CITY RADIO, INC.
Consolidated Statements of Operations
(all numbers in $000s, except per share amounts)
Year ended December 31,
1996 1997 1998
Gross Revenues $8,567 $11,731 $15,883
Agency commissions 623 1,271 1,681
-------- ----------- ------------
Net Revenues 7,944 10,460 14,202
Station operating expenses 12,253 12,979 17,525
-------- ----------- ------------
Broadcast cash flow (4,309) (2,519) (3,323)
Corporate, general and
administrative expenses 1,201 1,745 2,527
Employment incentive 0 3,863 808
Depreciation and amortization 1,326 1,791 2,528
-------- ----------- ------------
Operating loss (6,836) (9,918) (9,186)
Gain on sale of stations 6,608 0 0
Interest expense, net 2,860 4,468 9,532
Other (income) expense 10 (81) 224
-------- ----------- ------------
Loss before benefit from income
taxes and extraordinary loss (3,098) (14,305) (18,942)
Income tax benefit, net 0 1,050 1,988
Deferred income taxes
resulting from conversion
to C Corporation status 0 (3,350) 0
-------- ----------- ------------
Loss before extraordinary loss (3,098) (16,605) (16,954)
Extraordinary loss, net
of income taxes 0 (313) (495)
======== =========== ============
Net loss ($3,098) ($16,918) ($17,449)
======== =========== ============
Basic and diluted loss per share:
Loss before extraordinary
item ($0.39) ($1.74) ($1.21)
Extraordinary loss 0.00 (0.03) (0.03)
-------- ----------- ------------
======== =========== ============
Net loss ($0.39) ($1.77) ($1.24)
======== =========== ============
Weighted average number
of shares outstanding 8,024,000 9,539,000 14,026,000
======== =========== ============
BIG CITY RADIO, INC.
Consolidated Balance Sheets
(all numbers in $000s)
December 31,
1997 1998
Assets
Cash, cash equivalents and marketable
securities $80 $57,501
Accounts receivable 2,325 3,362
Interest receivable 0 1,574
Prepaids and other current assets 252 603
-------------- --------------
Total current assets 2,657 63,040
Property and equipment, net 2,679 4,512
Intangibles, net 54,115 80,309
Deferred financing fees 612 4,052
Other assets 45 169
============== ==============
Total assets 60,108 152,082
============== ==============
Liabilities and stockholders'
equity
Accounts payable 1,125 518
Accrued expenses 1,383 1,186
Other current liabilities 326 1,287
-------------- --------------
Total current liabilities 2,834 2,991
Senior discount notes 0 136,776
Notes payable, long-term debt 30,142 1,451
Deferred income tax liabilities 2,100 2,473
Preferred stock
Common stock 140 141
Additional paid-in-capital 27,024 27,831
Deficit (2,132) (19,581)
-------------- --------------
============== ==============
Total liabilities and
stockholders' equity 60,108 152,082
============== ==============
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