Citadel Communications Corporation and Citadel Broadcasting Update Fourth Quarter Guidance and Provide Additional 2001 Guidance.Business Editors LAS VEGAS--(BUSINESS WIRE)--Nov. 27, 2000 Mid-sized market radio broadcaster Citadel Communications
Citadel Communications is a Bronxville, NY-based broadcaster that owns 4 television stations, including: DMA Rank Market Station ... Corporation (Nasdaq: CITC CITC Communications and Information Technology Commission (Saudi Arabia) CITC Cottage Industry Technology Center CITC Canadian Institute of Travel Counsellors CITC Cook Inlet Tribal Council (Anchorage, Alaska) ) (the Company) and its operating subsidiary An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. , Citadel Broadcasting
Citadel Broadcasting Corporation NYSE: CDL is a Las Vegas, Nevada based broadcast holding company. Investment house Forstmann Little & Company owns 27% of Citadel. Company (Citadel), today provided a monthly update on fourth quarter financial guidance for the period ending December December: see month. 31, 2000. The Company also provided additional financial guidance for the twelve month period to end December 31, 2001. On October October: see month. 25, 2000 the Company and Citadel adopted a policy and schedule (see below) to provide monthly guidance to investors regarding the financial prospects of the Company and Citadel. Based on then current pacing, the Company and Citadel expected net revenue for the fourth quarter of 2000 to be approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $90 million and the broadcast cash flow (BCF BCF Billion Cubic Feet BCF Bioconcentration Factor BCF British Chess Federation BCF British Coatings Federation BCF Breast Cancer Fund BCF Bank Credit Facility BCF Bulked Continuous Filament BCF British Cycling Federation BCF Boeing Converted Freighter ) (defined as station operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. excluding depreciation, amortization, corporate general and administrative expenses, non-recurring items and other non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. ) margin to be approximately 39%. The Company and Citadel also reported on October 25, 2000 that through the first 23 days of the fourth quarter of 2000, the Company and Citadel had booked $66 million of net revenue, representing approximately 73% of their expected net revenue for the entire quarter. This pacing was in line with the bookings the Company and Citadel experienced at the same point during the third quarter of 2000. The "Business Outlook" section below updates this guidance through November November: see month. 24, 2000. In addition, on October 25, 2000 the Company and Citadel reported that based upon information available to them at the time, the Company and Citadel expected net revenue growth for 2001 of 7-8% and BCF growth of 13-15% over anticipated full year 2000 levels. The "Business Outlook" section below provides additional guidance on current expectations for the twelve months ending December 31, 2001. Business Outlook The following statements are based on current expectations. These statements are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. , and actual results may differ materially. See "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. " below. Except as otherwise stated in this news announcement, the Company and Citadel undertake no obligation to update these statements. These statements do not include the potential impact of any acquisitions or dispositions announced or completed after November 24, 2000. Fourth Quarter 2000 Based on current pacings, the Company and Citadel expect net revenue for the fourth quarter of 2000 to be approximately $92 million and anticipate achieving a BCF margin of approximately 39%. Through the first 55 days of the fourth quarter of 2000 the Company and Citadel had booked approximately $85 million of net revenue, representing approximately 92% of expected net revenue for the entire quarter. This pacing is ahead of the bookings the Company and Citadel experienced at the same point during the third quarter of 2000. Full Year 2001 Based upon information currently available to them, the Company and Citadel are expecting the following financial performance for 2001 compared to the expected pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma full year 2000 results:
Expected % change
Net revenue + 7% - 8%
Station operating expense + 3% - 4%
Broadcast cash flow (1) + 13% - 15%
EBITDA (2) + 13% - 15%
ATCF (3) + 50% - 55%
Estimated amounts
Corporate general & administrative expense $ 10,000,000
Non-cash deferred compensation $ 7,000,000
Depreciation and amortization expense $108,000,000
Interest expense, net $ 87,000,000
Deferred taxes $ (5,600,000)
Cash taxes $ 1,000,000
Dividend requirement for Exchangeable Preferred Stock $ 13,700,000
Capital expenditures $ 7,000,000
Weighted average common shares outstanding 37,000,000
(1) station operating income excluding depreciation, amortization,
corporate general and administrative expenses, non-recurring
items and other non-cash charges
(2) earnings before interest, taxes, depreciation and amortization
(3) after-tax cash flow: net income plus depreciation, amortization,
deferred taxes, non-recurring items and other non-cash charges
Additionally, Citadel and the Company noted that they historically generate their highest levels of revenue and broadcast cash flow in the fourth quarter, followed by the second quarter, then the third quarter and the first quarter. Long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. at December 31, 2001 is expected to approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. $866 million before pay-down Pay-down In a Treasury refunding, the amount by which the par value of the securities maturing exceeds that of those sold. In the context of general equities, paying a lower price in an accumulation of stock. Antithesis of pay-up. from free cash flow generated during the year. Monthly Guidance Schedule With the recent adoption by the Securities and Exchange Commission of Regulation FD, the Company and Citadel adopted the following policy to provide guidance to investors regarding the financial prospects of the Company and Citadel. Pursuant to the schedule below, through broadly disseminated disseminated /dis·sem·i·nat·ed/ (-sem´i-nat?ed) scattered; distributed over a considerable area. dis·sem·i·nat·ed adj. Spread over a large area of a body, a tissue, or an organ. news announcements, the Company and Citadel are providing a range of estimates for upcoming quarterly net revenue and BCF expectations. In addition, during the fourth quarter of each year, the Company and Citadel are providing ranges for the upcoming year of expected net revenue and BCF. On a monthly basis (see schedule below) the Company and Citadel are disclosing the net revenue booked in the quarter to-date relative to that quarter's forecast.
Monthly Guidance Schedule (continued)
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Date Report quarterly Provide Report progress against current
results forecast on: quarter forecast through:
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12/27/00 Q1 '01 12/26/00
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1/25/01 1/24/01
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2/26/01 Q4 '00 2/23/01
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3/26/01 Q2 '01 3/23/01
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4/25/01 Q1 '01 4/24/01
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5/25/01 5/24/01
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6/25/01 Q3 '01 6/22/01
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7/25/01 Q2 '01 7/24/01
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8/27/01 8/24/01
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9/25/01 Q4 '01 9/24/01
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10/25/01 Q3 '01 10/24/01
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11/26/01 Year ending 11/23/01
12/31/02
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12/26/01 Q1 '02 12/21/01
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About the Company Citadel is a radio broadcasting The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. company that owns or operates 144 FM and 64 AM stations concentrated in 44 mid-sized markets. Forward-Looking Statements This news announcement contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These forward-looking statements are based on current expectations and projections about future events and financial trends. The words or phrases "guidance," "expects," "expected," "expectations," "anticipate," "prospects," "estimated" and "forecast" and similar words or expressions are intended to identify such forward-looking statements. In addition, any statements that refer to expectations or other characterizations of future events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or are forward-looking statements. The forward-looking statements are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements, including, among other things, general economic changes and changes in the radio broadcast industry, fluctuations in the demand for advertising, possible difficulties in integrating recently acquired radio stations, the timing of future acquisition closings and variations in interest rates. Other key risks are described in the Company's and Citadel's reports filed with the U.S. Securities and Exchange Commission. Except as otherwise stated in this news announcement, neither the Company nor Citadel undertakes any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise. |
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