CHILDREN'S BROADCASTING CORPORATION REPORTS SECOND QUARTER, SIX MONTH RESULTS; AAHS Direct sales continue to improve; Licensing representation, NetRadio deals signed.MINNEAPOLIS--(BUSINESS WIRE)--Aug. 12, 1996--Children's Broadcasting Corporation (CBC (1) (Cell Broadcast Center) See cell broadcast. (2) (Cipher Block Chaining) In cryptography, a mode of operation that combines the ciphertext of one block with the plaintext of the next block. ) (Nasdaq NM: AAHS AAHS American Aviation Historical Society AAHS Aromatic Acid: H+ Symporter AAHS American Association for Hand Surgery AAHS Athens Area High School (Pennsylvania) AAHS Ambridge Area High School (Pennsylvania) ) today announced financial results for its second quarter and six months ended June 30, 1996. The company reported revenues of $1,331,467 for the second quarter ending June 30, 1996, compared to revenues of $1,404,272 for the second quarter ended June 30, 1995. After accounting for corporate charges, depreciation and amortization, and interest expense, the company reported a net loss for the quarter of $1,706,411 or $(0.47) per share, compared to a net loss of $1,073,483 or $(0.40) per share, for the quarter ended June 30, 1995. Revenues for the six months ended June 30, 1996, were $2,547,490, down from $2,666,102, for the six months ended June 30, 1995. The net loss for the period was $3,582,284, or $(0.98) per share, compared to a net loss of $2,511,861, or $(0.93), for the comparable year-ago period. Commenting on the results, Christopher T. Dahl dahl n. 1. See pigeon pea. 2. or dal A thick creamy East Indian stew made with lentils or other legumes, onions, and various spices. , president and chief executive officer of Children's Broadcasting Corporation, stated, "Second quarter, typically a slower radio sales quarter, was highlighted by continued progress and success on a local sales level with our AAHS(TM) Direct program. With an increased focus on reducing trade/barter revenues, the AAHS(TM) Direct stations including Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , Dallas, Minneapolis, Denver and Kansas City Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). , posted revenues of $396,000 in the second quarter 1996 versus $285,000 in 1995. Additionally, cash expenses for these stations were down $26,000 in the second quarter of 1996 compared to the same period in 1995. We are anxious to roll our our sales programs in our new markets including 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 and Detroit." "Second quarter 1996 was also punctuated by a sizable siz·a·ble also size·a·ble adj. Of considerable size; fairly large. siz  a·ble·ness n. advertising promotion with Fox Home Video and the signing of two
agreements that we anticipate will add new revenue streams for the
company. Those agreements are a licensing representation agreement with
Meridian Meridian (mərĭd`ēən), city (1990 pop. 41,036), seat of Lauderdale co., E Miss., near the Ala. line; settled 1831, inc. 1860. Worldwide, and an agreement with NetRadio to bring Radio
AAHS HistoryRadio AAHS (sometimes misspelled as "Radio Oz") was a radio network managed by the Children's Broadcasting Corporation. Its flagship station was WWTC-AM in Minneapolis. At its height in 1996, Radio AAHS had 29 affilliates across the nation. (R) to the Internet in real-time." "On the local Radio AAHS(R) advertising front, an "AAHS(TM) Partnership" program is being rolled out in the Detroit market, with our newly purchased WCAR-AM," Dahl added. "We have firm commitments from seven founding partner advertisers in Detroit, which translates to yearly sponsorships in seven exclusive product categories. As we roll out new AAHS(TM) stations across the country this program will serve as a great foundation from which to operate a Radio AAHS(R) station. Subsequent to the end of second quarter, CBC has engaged Southcoast Capital Corporation to explore strategic options to maximize shareholder value. It was also announced that the operating agreement An operating agreement is an agreement among limited liability company ("LLC") members governing the LLC's business, and Member's financial and management rights and duties. No state requires an LLC to have an Operating agreement. with ABC Radio ABC Radio is a broadcasting unit of Citadel Broadcasting Corporation.[1] ABC Radio was, from 1945 until 2007, the division of the American Broadcasting Company (ABC) focused on AM radio and FM radio broadcasting. Networks was terminated. "We are moving forward with implementing the next phases of expanding the network to reach our goal of being in the top 100 markets," Dahl said. "We are pleased to put the company's second quarter behind us, with its many stops and starts related to our association with ABC ABC in full American Broadcasting Co. Major U.S. television network. It began when the expanding national radio network NBC split into the separate Red and Blue networks in 1928. . We believe third and fourth quarter revenues will show positive growth when compared to the same period for 1995, and, in fact, third quarter revenues are already ahead of third quarter 1995 revenues. We anticipate that this trend will continue as the company garners greater coverage of 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. . Children's Broadcasting Corporation's Radio AAHS(R) is an award-winning programming mix of music, news, stories and games, produced and distributed for children age 12 and under and their parents. The company's Radio AAHS(R) format, broadcast via satellite from flagship station In broadcasting, a flagship station is the station which originates a broadcast network, or a particular radio show or TV show, primarily in the United States and Canada. This includes both direct network feeds and syndication, but generally not backhauls. WWTC-AM, Minneapolis, is available to approximately 40 percent of the country including pending acquistions in Philadelphia and Chicago. Radio AAHS(R) has an affiliated network of 31 stations across the country, including company owned or operated stations in New York, Los Angeles, Dallas, Detroit, Minneapolis, Kansas Minneapolis, Kansas, is a city in Ottawa County, Kansas, United States. The population was 2,046 at the 2000 census. It is the county seat of Ottawa CountyGR6. City and Denver. Programming includes live shows from Disneyland, Walt Disney World Noun 1. Walt Disney World - a large amusement park established in 1971 to the southwest of Orlando Orlando - a city in central Florida; site of Walt Disney World and Long Island, New York. This news release for the quarter ended June 30, 1996, contains certain forward-looking terminology as "believes," "anticipate," "will," and "intends," or comparable terminology. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Potential purchasers of the company's securities are cautioned not to place undue reliance on such 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. which are qualified in their entirety The whole, in contradistinction to a moiety or part only. When land is conveyed to Husband and Wife, they do not take by moieties, but both are seised of the entirety. by the cautions and risk factors contained in the company's Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. Report filed on July 3, 1996 (File No. 0-21534). -0-
CHILDREN'S BROADCASTING CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
Three Months Ended Six Months Ended
June 30 June 30
1996 1995 1996 1995
----------------------- ----------------------
Revenues
Owned, Operated
and LMA stations $1,082,178 $1,140,322 $1,940,658 $2,030,126
Network 249,289 263,950 606,832 635,976
----------------------- ----------------------
Revenues $1,331,467 $1,404,272 $2,547,490 $2,666,102
Operating Expenses:
Owned, Operated and
LMA stations
General and
Administrative 524,774 480,243 994,212 1,041,702
Technical and
Programming 222,073 231,345 421,875 525,901
Selling 341,642 409,440 682,169 904,308
----------------------- ----------------------
1,088,489 1,121,028 2,098,256 2,471,911
Network
General and
Administrative 222,156 127,724 448,140 258,074
Programming 212,997 150,119 431,127 282,069
Selling 215,279 255,323 428,070 583,224
Marketing 143,283 6,684 263,514 13,244
Magazine 62,396 38,567 125,541 57,558
----------------------- ----------------------
856,111 578,417 1,696,392 1,194,169
Broadcast Cash Flow (613,133) (295,173) (1,247,158) (999,978)
----------------------- ----------------------
Corporate 514,712 363,565 956,889 727,964
Depreciation &
Amortization 539,755 225,391 1,071,520 457,191
Loss on Exchange of
Assets -- 24,226 -- 28,687
----------------------- ----------------------
Total Operating
Expenses 2,999,067 2,312,627 5,823,057 4,879,922
----------------------- ----------------------
Loss From
Operations (1,667,600) (908,355) (3,275,567) (2,213,820)
Interest Expense
(Net of Interest
Income) 38,811 165,128 306,717 298,041
----------------------- -----------------------
Net Loss ($1,706,411) ($1,073,483) ($3,582,284) ($2,511,861)
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Net Loss Per Share ($0.47) ($0.40) ($0.98) ($0.93)
Weighted Average
Number of Shares
Outstanding 3,736,000 2,710,000 3,736,000 2,710,000
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CONTACT: Joy Plaschko, Media/IR Manager, CBC, 612/330-9524 Jeffrey Volk, Lippert/Heilshorn & Assoc. 212/838-3777, ext. 102 http://www.radio-aahs.com |
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