Children's Broadcasting Corporation Reports Second Quarter, Six Month Results.MINNEAPOLIS--(BUSINESS WIRE)--Aug. 13, 1997-- -Network revenue up 24%, O & O revenue up 2% over same quarter 1996- -Purchase Agreement to sell O & O stations for $72.5 million signed- 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 June: see month. 30, 1997. The company reported revenues of $1,416,912 for the second quarter ended June 30, 1997, compared to revenues of $1,331,467 for the second quarter ended June 30, 1996. After accounting for corporate charges, depreciation and amortization, and interest expense, the Company reported a net loss for the quarter of $3,155,531 or $(0.51) per share, compared to a net loss of $3,368,789 or $(0.63) per share, for the quarter ended June 30, 1996. Revenues for the six months ended June 30, 1997, were $2,567,633, up from $2,547,490 for the six months ended June 30, 1996. The net loss for the period was $5,935,725, or $(.99) per share, compared to a net loss of $5,244,662, or $(1.16), for the comparable period in 1996. 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 CBC, stated, "On the revenue front, the Company is still feeling the impact of the sales rebuilding process as a result of the wrongful conduct Noun 1. wrongful conduct - activity that transgresses moral or civil law; "he denied any wrongdoing" actus reus, misconduct, wrongdoing activity - any specific behavior; "they avoided all recreational activity" we allege To state, recite, assert, or charge the existence of particular facts in a Pleading or an indictment; to make an allegation. allege v. in our pending litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. against ABC/Disney. On the expense front, corporate charges again increased primarily because of the cost of litigation to pursue the Company's complaint against ABC/Disney." "The most significant financial news from second quarter is certainly the fact that CBC signed a purchase agreement to sell its 14 owned and operated AM radio stations to Global Broadcasting Global Broadcasting LLC. is a broadcasting company in the United States. Global is based in Delaware and is jointly owned and operated by media veterans Kevin O'Brien and Robinson Ewert. Company, Inc., for the aggregate sale price of $72.5 million. The escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. deposit required is in place and we expect to close on the transaction in approximately six months. We also expect to call a meeting to solicit the approval of shareholders later this year," Dahl said. "The sale of our AM properties will allow us to develop ancillary Subordinate; aiding. A legal proceeding that is not the primary dispute but which aids the judgment rendered in or the outcome of the main action. A descriptive term that denotes a legal claim, the existence of which is dependent upon or reasonably linked to a main claim. audio streams for Aahs(SM) programming and to continue to serve our existing network of radio station affiliates, while significantly reducing our costs of operations. In the interim, the Company will explore additional business opportunities and will pursue, to its conclusion the ABC/Disney litigation," Dahl reiterated. Other key announcements during the second quarter included: a partnership to build an Aahs(SM) studio on-site on-site adj. Done or located at the site, as of a particular activity: on-site monitoring of a production run; an on-site film shoot. and also produce and jointly promote a weekly science show with Liberty Science Center, Jersey City, NJ; a radio programming collaboration Working together on a project. See collaborative software. with Celebrity Sightings
Sightings was a paranormal-themed television program that was first broadcast as an hour special entitled "UFO Report: Sightings" in October 1991. , the successful teen entertainment website; the acquisition of the radio broadcast license of KIDR-AM 740, Phoenix; and a significant signal upgrade for CBC station WJDM-AM 1660 serving the New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. area. Aahs World Radio(SM) is CBC's all live, 24-hour radio and multimedia network for today's kids and families. Its programming mix includes: popular and diverse music; Parents' Choice Award-winning Adj. 1. award-winning - having received awards; "this award-winning bridge spans a distance of five miles" news; classic and original stories; games and prizes. The "Aahs(SM) World Zone," interactive phone system logs some 3,000,000 calls a year and the entertaining Aahs(SM) website (http://www.aahsworld.com) is one of the hottest youth web destinations. Aahs(SM) is broadcast via satellite from WWTC-AM, Minneapolis. Aahs(SM) is available to approximately 40 percent of the country through 30 affiliate stations, including seven of the top ten markets. This news release contains certain forward-looking terminology such as "believes," "expects," "anticipates," 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 risks described herein. Please refer to the Company's annual report on Form 10-KSB for the fiscal year ended December 31, 1996, for additional factors known to the Company that may cause actual results to vary. -0-
CHILDREN'S BROADCASTING CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
Three Months Ended Six Months Ended
June 30 June 30
1997 1996 1997 1996
restated restated
----------------------- ----------------------
Revenues
Owned, Operated and
LMA stations $1,108,460 $1,082,178 $2,052,715 $1,940,658
Network 308,452 249,289 514,918 606,832
----------------------- ----------------------
Revenues $1,416,912 $1,331,467 2,567,633 2,547,490
Operating Expenses:
Owned, Operated and
LMA stations
General and
Administrative 771,485 524,774 1,529,125 994,212
Technical and
Programming 303,609 222,073 543,882 421,875
Selling 555,083 341,642 896,598 682,169
---------------------- ----------------------
1,630,177 1,088,489 2,969,605 2,098,256
Network
General and
Administrative 144,205 222,156 295,025 448,140
Programming 219,931 212,997 426,911 431,127
Selling 494,738 215,279 949,326 428,070
Marketing 31,816 123,718 151,056 243,949
Magazine -- 62,396 -- 125,541
---------------------- ----------------------
890,690 836,546 1,822,318 1,676,827
Corporate 1,103,896 514,712 1,991,196 956,889
Depreciation &
Amortization 544,472 559,320 1,003,035 1,091,085
Write Off Of Deferred
Warrant Expense -- 1,662,378 -- 1,662,378
---------------------- ----------------------
Total Operating
Expenses 4,169,235 4,661,445 7,786,154 7,485,435
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Loss From Operations (2,752,323) (3,329,978) (5,218,521) (4,937,945)
Interest Expense
(Net of Interest
Income) 403,208 38,811 717,204 306,717
---------------------- ----------------------
Net Loss ($3,155,531)($3,368,789)($5,935,725)($5,244,662)
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Net Loss Per Share ($0.51) ($0.63) ($0.99) ($1.16)
Weighted Average
Number of Shares
Outstanding 6,133,000 5,427,000 6,019,500 4,583,000
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CONTACT: Joy Plaschko/IR Manager, CBC, 612/330-9524 |
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