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GRANITE BROADCASTING CORPORATION ANNOUNCES FINANCIAL RESULTS FOR THE NINE MONTHS AND THIRD QUARTER ENDED SEPTEMBER 30, 1992

 GRANITE BROADCASTING CORPORATION ANNOUNCES FINANCIAL RESULTS
 FOR THE NINE MONTHS AND THIRD QUARTER ENDED SEPTEMBER 30, 1992
 NEW YORK, Oct. 30 /PRNewswire/ -- Granite Broadcasting Corporation (NASDAQ: GBTVK) today announced its operating results for the nine months and third quarter ended Sept. 30, 1992.
 For the nine months of 1992, Granite's net revenue was $26,449,000 compared with $24,012,000 in 1991, a 10.1 percent increase. Station operating cash flow (operating income before corporate, depreciation and amortization expense) for the nine months ended Sept. 30, 1992, was $10,409,000 compared with $9,207,000 in 1991, a 13.1 percent increase. Operating cash flow (operating income before depreciation and amortization) for the nine months was $9,568,000 compared with $8,586,000 in 1991, a 11.4 percent increase. Granite's operating cash flow margin was 36.2 percent during the nine months of 1992 compared with 35.8 percent during the same period of 1991.
 For the third quarter of 1992, Granite's net revenue was $8,602,000 compared with $7,796,000 in 1991, a 10.3 percent increase. As a result of increased expenditures for news and entertainment programming, station operating cash flow (operating income before corporate, depreciation and amortization expense) for the three months ended Sept. 30, 1992, was $3,212,000 compared with $3,270,000 in 1991, a 1.8 percent decrease. Operating cash flow (operating income before depreciation and amortization) for the third quarter was $2,910,000 compared with $3,079,000 in 1991, a 5.5 percent decrease.
 "We anticipated that 1992's third quarter would be our most challenging in comparison to 1991 since the only increase during 1991 in operating cash flow and the largest portion of our expense reduction program occurred during 1991's third quarter," said W. Don Cornwell chairman and chief executive officer. "The expense comparison for this particular quarter was especially difficult since we permitted our stations to resume spending during the second quarter of 1992 at more normal levels and to make certain strategic investments in news and entertainment programming during the third quarter despite the impact on the company's operating cash flow. As a result, the growth in net revenue of $806 thousand generated by Granite stations during the third quarter was not sufficient to offset the planned increase in operating expense resulting in a small decline in operating cash flow.
 "Our station group achieved significant revenue growth during the third quarter despite a listless economy and lower than expected political advertising. Granite's growth rate in net revenue was 10.3 percent during the third quarter enhanced by a 17.7 percent gain in net revenue at WPTA and 12.8 percent and 11.1 percent growth at KBJR and WEEK, respectively. KNTV's revenue growth slowed considerably during the quarter to 5.4 percent after a gain of 21 percent during the second quarter as the California economy continues to struggle.
 "During the quarter, local and national non-political advertising increased by 11.1 percent and 6.3 percent, respectively, enhanced by a gain of almost 50 percent in automotive advertising which was especially strong at KNTV, WEEK and KBJR. Granite's non-political revenue was increased by successful "Kids Festivals(TM)" in San Jose, Calif., and Fort Wayne, Ind. In addition, the company held its first "Mature Lifestyle Festival(TM)" in Peoria, Ill., a new special event intended to provide advertisers an opportunity to target consumers aged 50 and over. KBJR was especially successful in attracting advertisers to the Summer Olympics broadcast on NBC.
 "Political advertising was less than expected at Granite stations during the third quarter and October. Many advertisers have reduced their spending during late September and October, the period of greatest activity in political advertising, and it is not clear at this point that the pace of spending during the remainder of the year will offset the impact of such reductions," Mr. Cornwell said. "In addition, economic conditions in northern California, while considerably better than southern California, continue to lag behind the rest of the nation adversely affecting the market served by KNTV."
 Granite's net loss before extraordinary item for the third quarter was $1,347,000 compared with $2,049,000 in 1991, a decrease of 34.3 percent. However, as a result of an extraordinary charge of $5,358,000 on the early extinguishment of debt associated with the company's private placement during the third quarter of $60 million of 12.75 percent senior subordinated debentures due Sept. 1, 2002, the company's net loss for the third quarter was $6,705,000. The net proceeds of the offering were used to refinance a portion of the company's outstanding long-term indebtedness resulting in significantly lower interest expense and a more appropriate amortization schedule for the company.
 Granite is a New York-based group broadcasting company founded in 1988 to acquire and manage network-affiliated television stations and other media and communications-related properties. The company currently owns and operates KNTV(TV), the ABC affiliate serving San Jose, Calif., and the Salinas-Monterey, Calif., television market; WPTA- TV, the ABC affiliate serving Fort Wayne, Ind.; WEEK-TV, the NBC affiliate serving Peoria-Bloomington, Ill.; and KBJR-TV, the NBC affiliate serving Duluth, Minn., and Superior, Wis. Granite stations provide through a joint venture with Audio Communications, Inc. the delivery of news, information and entertainment through 900 (pay-per- call) and 800 (free) number services. The company was ranked number 24 on Black Enterprise Magazine's 1991 Black Enterprise 100 List.
 FINANCIAL RESULTS
 (unaudited)
 Three Months
 Ended Sept. 30, Percent
 1991 1992 Change
 (in thousands except per share data and number of shares)
 Net revenue $ 7,796 $ 8,602 10.3
 Station operating expense 4,526 5,390 19.1
 Depreciation 625 573 (8.4)
 Amortization 1,139 927 (18.6)
 Station operating income 1,506 1,712 13.7
 Corporate expense 191 302 58.2
 Operating income 1,315 1,410 7.3
 Interest expense 3,298 2,563 (22.3)
 Other 66 194 193.9
 Loss before extraordinary item $(2,049) $ (1,347) (34.3)
 Extraordinary loss on
 extinguishment of debt 0 (5,358)
 Net loss $ (2,049) $ (6,705) 227.2
 Dividend requirement on series
 A preferred stock (10) (10)
 Net loss attributable to
 common shareholders $ (2,059) $ (6,715) 226.1
 Net loss per common share $ (5.73) $ (1.57)
 Weighted average common shares
 outstanding (a) 359,270 4,278,891
 Station operating cash flow(b) $ 3,270 $ 3,212 (1.8)
 Operating cash flow (b) $ 3,079 $ 2,910 (5.5)
 Operating cash flow margin 39.5 pct 33.8 pct
 (a) On Jan. 22, 1992, the company completed its initial public offering of 3,450,000 shares of common stock (nonvoting). Giving effect to the issuance of such shares as well as shares issuable upon conversion of the outstanding issues of convertible preferred stock, the company's total number of shares (fully diluted) outstanding as of Sept. 30, 1992, is 7,315,802.
 (b) "Station operating cash flow" means operating income before corporate, depreciation and amortization expense. "Operating cash flow" means operating income before depreciation and amortization expense.
 FINANCIAL RESULTS
 (unaudited)
 Nine Months
 Ended Sept. 30, Percent
 1991 1992 Change
 (in thousands except per share data and number of shares)
 Net revenue $ 24,012 $ 26,449 10.1
 Station operating expense 14,805 16,040 8.3
 Depreciation 1,870 1,679 (10.2)
 Amortization 3,415 2,745 (19.6)
 Station operating income 3,922 5,985 52.6
 Corporate expense 621 841 35.4
 Operating income 3,301 5,144 55.8
 Interest expense 10,220 8,775 (14.1)
 Other 394 434 10.2
 Loss before extraordinary item $ (7,313) $ (4,065) (44.4)
 Extraordinary loss on
 extinguishment of debt 0 (5,358)
 Net loss $ (7,313) $ (9,423) 28.9
 Dividend requirement on series
 A preferred stock (30) (30)
 Net loss attributable to
 common shareholders $ (7,343) $ (9,453) 28.7
 Net loss per common share $ (24.92) $ (2.39)
 Weighted average common shares
 outstanding (a) 294,691 3,950,082
 Station operating cash flow (b) $ 9,207 $ 10,409 13.1
 Operating cash flow (b) $ 8,586 $ 9,568 11.4
 Operating cash flow margin 35.8 pct 36.2 pct
 (a) On Jan. 22, 1992, the company completed its initial public offering of 3,450,000 shares of common stock (nonvoting). Giving effect to the issuance of such shares as well as shares issuable upon conversion of the outstanding issues of convertible preferred stock, the company's total number of shares (fully diluted) outstanding as of Sept. 30, 1992, is 7,315,802.
 (b) "Station operating cash flow" means operating income before corporate, depreciation and amortization expense. "Operating cash flow" means operating income before depreciation and amortization expense.
 -0- 10/30/92
 /CONTACT: -- Don Cornwell, chief executive officer of Granite Broadcasting, 212-826-2530/
 (GBTVK) CO: Granite Broadcasting Corporation ST: New York IN: ENT SU: ERN


KD -- NY068 -- 7176 10/30/92 14:07 EST
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