Hearst-Argyle Television Announces Results for the Fourth Quarter and Full Year.NEW YORK--(BUSINESS WIRE)--Feb. 26, 1998--Hearst-Argyle Television, Inc. (Nasdaq: HATV) today announced operating results for the fourth quarter and full year, 1997. On a 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 basis, broadcast cash flow for the year grew 10%, to $175.8 million, on revenue growth of 4.7%, to $387.8 million. Pro forma after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. cash flow rose 8.6%, to $89.3 million; pro forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. per share increased 18.5%, to $0.96. On a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). reported basis, broadcast cash flow for the year grew 190%, to $92.5 million, on revenue growth of 170.5%, to $198.3 million. After-tax cash flow rose 308.8%, to $38.4 million. On a pro forma basis, broadcast cash flow for the fourth quarter grew 9% to $56.5 million, on revenue growth of 8%, to $112.4 million. Pro forma after-tax cash flow for the quarter grew 10%, to $30 million. Pro forma earnings per share for the quarter increased 12%, to $0.37. On a GAAP reported basis, broadcast cash flow grew 424%, to $56.1 million, on a revenue increase of 415.5%, to $112.4 million. After-tax cash flow for the quarter rose 443%, to $28.3 million. "We had a terrific year," noted Bob Marbut, chairman and co-chief executive officer. "The merger of Hearst Broadcasting and Argyle Television, which was completed in August, has gone extremely well and we've we've Contraction of we have. we've have seen encouraging results for this, our first fully blended quarter. Our broadcast cash flow margin for the year grew three percentage points on a reported basis, all while we continued to invest strongly in our stations. "We are the only pure-play, all-television company with an investment grade rating," Marbut continued. "In the first quarter, we have further strengthened our balance sheet and acquisition capacity; we offered an additional $200 million of investment grade notes and we have launched a tender offer on older, subordinated notes. Also in the first quarter, we announced, pending regulatory approval, the exchange of our Dayton Dayton, city (1990 pop. 182,044), seat of Montgomery co., SW Ohio, on the Great Miami River where it is joined by the Stillwater River; inc. 1805. It is the trade center for a fertile farm area, but is best known for its involvement with industry, invention, and and Providence Providence, city (1990 pop. 160,728), state capital and seat of Providence co., NE R.I., a port at the head of Providence Bay; founded by Roger Williams 1636, inc. as a city 1832. stations for stations in Monterey Monterey (mŏntərā`), city (1990 pop. 31,954), Monterey co., W Calif., a port on Monterey Bay; founded 1770, inc. 1850. It is a popular resort, the home of many artists and writers, and one of California's oldest cities. and Burlington-Plattsburgh that give us higher broadcast cash flow." "We achieved our sales gains despite $10.4 million of political advertising in last year's fourth quarter," added John G. Conomikes, president and co-chief executive officer. "Moreover, the Monterey and Burlington-Plattsburgh stations will give us greater geographic diversity and greater diversity among our network affiliations. Upon successful completion, this exchange will give Hearst-Argyle nine 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. affiliates and four NBC NBC in full National Broadcasting Co. Major U.S. commercial broadcasting company. It was formed in 1926 by RCA Corp., General Electric Co. (GE), and Westinghouse and was the first U.S. company to operate a broadcast network. affiliates, most of which are No. 1 or No. 2 in their markets, and two WB affiliates This is a list of stations which were affiliated with The WB Television Network in the United States at the time of the network's closure. Note that all WB O&O's were through Tribune's stake in the network. The WB shut down September 17, 2006. ." Pro Forma Same-Station Results -- For the Three Months Ended December December: see month. 31, 1997 On a pro forma basis, total revenues for the three months increased 8%, to $112.4 million from $104.1 million for the comparable period ended December 31, 1996. Broadcast cash flow on a pro forma basis increased 9%, to $56.5 million from $51.8 million for the comparable period ended December 31, 1996. Pro forma operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. for the three-month period was $53.8 million, up 9.7% from $49 million in the comparable period in 1996. Pro forma after-tax cash flow for the three months was $30 million, up 10% from $27.3 million in the comparable period in 1996. Pro forma earnings per share for the three months was $0.37, up 12% from $0.33 in the comparable period in 1996. -- For the Full Year Ended December 31, 1997 For the year, total revenues on a pro forma basis increased 4.7%, to $387.8 million from $370.2 million for the year ended December 31, 1996. Broadcast cash flow on a pro forma basis for the year increased by 10%, to $175.8 million from $160 million for 1996. Pro forma operating cash flow for the year was $164.8 million, up 10.7% from $149 million in 1996. Pro forma after-tax cash flow was $89.3 million, up 8.6% from $82.2 million last year. Pro forma earnings per share was $0.96, up 18.5% from $0.81 last year. GAAP - Reported Results -- For the Three Months Ended December 31, 1997 Total revenues for the three-month period were $112.4 million, up 415.5% from $21.8 million for the three-month period ended December 31, 1996. Broadcast cash flow for the three-month period was $56.1 million, an increase of 424% from $10.7 million for the comparable period in 1996. Operating cash flow for the three-month period was $53.1 million, up 435.4% from $9.9 million in the comparable period in 1996. After-tax cash flow for the three months was $28.3 million, up 443% from $5.2 million in the comparable period for 1996. -- For the Year Ended December 31, 1997 Total revenues for the year were $198.3 million, up 170.5% from $73.3 million for year ended December 31, 1996. Broadcast cash flow for the year was $92.5 million, up 190% from $31.9 million in 1996. Operating cash flow was $86.3 million, up 212.7% from $27.6 million in 1996. After-tax cash flow was $38.4 million, up 308.8% from $9.4 million in 1996. GAAP results for the fourth quarter and for the year include an Extraordinary Item reflecting the charge-off Eliminate or write off. The term charge-off is used to describe the process of removing from the records of a company something that was once regarded as an asset but has subsequently become worthless. of capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. financing costs and the payment of a premium in connection with the early retirement of older, higher-cost debt. Recent Operating Accomplishments "Our stations enjoy strong positions in their respective markets, thanks to our outstanding local management teams and our focus on aggressive news, marketing and sales initiatives," added David J David J. Haskins (b. April 24, 1957, in Northampton, England) is a British alternative rock musician. He was the bassist for the seminal gothic rock band Bauhaus. Life and work . Barrett Barrett (sometimes spelled Barret or Barratt) is a surname that has been associated with several different people, places and organisations: Barrett is a popular surname in south and west Ireland. , executive vice president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . "In particular, WCVB WCVB Warren County Visitors Bureau (Pennsylvania) Boston Boston, town, England Boston, town (1991 pop. 26,495), E central England, on the Witham River. Boston's fame as a port dates from the 13th cent., when it was a Hanseatic port trading wool and wine. Having recovered from a decline in the 18th and 19th cent. , WBAL WBAL West Bay Athletic League (San Francisco Bay Area) Baltimore Baltimore, city (1990 pop. 736,014), N central Md., surrounded by but politically independent of Baltimore co., on the Patapsco River estuary, an arm of Chesapeake Bay; inc. 1745. and KMBC KMBC Kentucky Mountain Bible College KMBC Kickapoo Mountain Bike Club (Champaign, IL) 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). are among the strongest TV stations in the country. The Hearst-Argyle stations are well prepared to compete against any and all challengers to retain leadership in local news and local sales." WCVB-TV, Hearst-Argyle's ABC affiliate in Boston -- the largest ABC station owned by an affiliate company -- easily won the November ratings competition. All its local weekday newscasts placed No. 1 for the fourth consecutive "sweeps," outdistancing the market's NBC affiliate, WHDH, and the CBS- owned station, WBZ WBZ Wet Bulb Zero (meteorology) WBZ Whole Blood . Chronicle chronicle, official record of events, set down in order of occurrence, important to the people of a nation, state, or city. Almanacs, The Congressional Record in the United States, and the Annual Register in England are chronicles. , the station's evening news and public affairs Those public information, command information, and community relations activities directed toward both the external and internal publics with interest in the Department of Defense. Also called PA. See also command information; community relations; public information. program, had a 7% ratings increase over the prior year. A nationwide leader in locally originated programming, WCVB also produced additional episodes of Food New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. , magazine-style specials highlighting regional cuisine A standard definition of a regional cuisine would be “a coherent tradition of food preparation that rises from the daily lives and kitchens of a people over an extended period of time.”[1] References 1. ^ winebrats , and of its news-and-public service series, titled The Healthbeat Project. WCVB increased its share of local market revenues in the fourth quarter and for the full year. WLWT-TV, Hearst-Argyle's NBC affiliate in Cincinnati, showed continued ratings growth, winning the 11 p.m. news in the all-important November sweeps in various demographic categories. In 1998, construction will begin on a new WLWT building with digital capability. WBAL-TV, Hearst-Argyle's NBC affiliate in Baltimore, made history by winning, for the first time in 20 years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time ratings race for the 5, 6 and 11 p.m. newscasts in the November sweeps. The station now holds a commanding lead over the competition, including WJZ-TV, the CBS (Cell Broadcast Service) See cell broadcast. station, in the weekend and 5 and 11 p.m. weekday newscasts. WTAE-TV, Pittsburgh, aired two successful Steelers games in November. A simulcast of a Sunday night Sunday Night, later named Michelob Presents Night Music, was an NBC late-night television show which aired for two seasons between 1988 and 1990 as a showcase for jazz and eclectic musical artists. ESPN ESPN Entertainment and Sports Programming Network game brought the station a 37 rating and 50 share, while the station's 7 p.m. pre-game special, Steelers Primetime, pulled a 12 rating and an 18 share. A Monday Night Football “MNF” redirects here. For other uses, see MNF (disambiguation). Monday Night Football (MNF) is a live television broadcast of the National Football League. Steelers telecast achieved a 44 rating. KMBC-TV, Kansas City, MO, won all newscast newscast Radio or television broadcast of news events. News gathering and broadcasting by the radio networks began in the mid-1930s and increased significantly during World War II. The television newscast began in 1948 with 15-minute programs that resembled movie newsreels. ratings in the November sweeps, continuing its track record as one of the ABC Network's highest-performing affiliate stations nationally. WISN-TV, Milwaukee, saw its early news ratings surge 15 percent in the November sweeps, while a Monday Night Football Green Bay Packers game garnered a 57 rating and a 73 share. KOCO-TV, Hearst-Argyle's ABC affiliate in Oklahoma City Oklahoma City (1990 pop. 444,719), state capital, and seat of Oklahoma co., central Okla., on the North Canadian River; inc. 1890. The state's largest city, it is an important livestock market, a wholesale, distribution, industrial, and financial center, and a farm , won four out of five weeknights in primetime during the November sweeps; "Oprah" achieved a 45 share in the women 25-54 demographic. WWWB-TV, Tampa-St. Petersburg, a WB affiliate and the newest broadcast station in the Southeast's second largest market, firmly established itself in the market. In the November sweeps, WB32, a Hearst-Argyle managed station, had a ratings gain over 1996 of 175% in the adults 25-54 demographic, 200% in adults 18-49 and 225% in adults 18-34, beating the local Fox and NBC affiliates in the prime time "access" period. WPBF-TV, a Hearst-Argyle managed station and the ABC affiliate in West Palm Beach, further expanded its news coverage capability by joining the Florida News Florida News is a partisan Democratic weblog focusing on Florida political news and contains commentary. Florida News gained media attention from the St. Petersburg Times [1] and the Weekly Planet [2] Network, a regional news cooperative, and announced that it would add the popular Jeopardy jeopardy, in law, condition of a person charged with a crime and thus in danger of punishment. At common law a defendant could be exposed to jeopardy for the same offense only once; exposing a person twice is known as double jeopardy. to its fall 1998 lineup A criminal investigation technique in which the police arrange a number of individuals in a row before a witness to a crime and ask the witness to identify which, if any, of the individuals committed the crime. . Wheel of Fortune debuted on WPBF WPBF West Palm Beach, Florida in September and has garnered the highest ratings in its timeslot in WPBF's nine-year history. KITV-TV, the ABC affiliate in Honolulu, produced America's first commercial digital (DTV (Digital TeleVision) Transmitting TV using digital signals. The major DTV standards are ATSC (North America), DVB (Europe) and ISDB (Japan). All three use MPEG-2 video compression and Dolby Digital audio compression. DVB and ISDB also include MPEG audio compression. ) telecast on Dec. 22. The station was additionally honored hon·or n. 1. High respect, as that shown for special merit; esteem: the honor shown to a Nobel laureate. 2. a. Good name; reputation. b. as "Broadcaster of Year" by Television Broadcast magazine, for being the country's first commercially licensed digital TV station, months ahead of most others. In the first quarter of 1998, advertising sales on a pro forma basis are pacing up by about 5% over the first quarter of 1997, despite Olympics Olympics Sports medicine An international competition among (traditionally) nonprofessional athletes trained in a particular summer or winter sport, which is held every 4 yrs in a selected city. See Paralympics, Special Olympics, World Medical Games. programming on competing stations. The Company additionally announced that its annual shareholders' meeting shareholders' meeting n. a meeting, usually annual, of all shareholders of a corporation (although in large corporations only a small percentage attend) to elect the Board of Directors and hear reports on the company's business situation. will be held on April 14 in 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. , and that the board of directors has set March 6 as the Record Date for the shareholders' meeting. March 6 is also the deadline for receipt by the Company of proposals from stockholders for presentation at the shareholders' meeting. The Hearst-Argyle television Hearst-Argyle Television, Inc., is a broadcasting company in the United States. Hearst-Argyle is majority-owned by the New York City-based Hearst Corporation, and holds joint ventures in television production with NBC Universal Television Distribution, has an Internet partnership stations currently reach approximately 11.5% of U.S. television households and comprise the fourth largest non-network owned television station group 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. . Hearst-Argyle Television, Inc. owns and operates network affiliated television stations WCVB-TV, the ABC affiliate in Boston, MA; WTAE-TV, the ABC affiliate in Pittsburgh, PA; WBAL-TV, the NBC affiliate in Baltimore, MD; WLWT-TV, the NBC affiliate in Cincinnati, OH; WISN-TV, the ABC affiliate in Milwaukee, WI; KMBC-TV, the ABC affiliate in Kansas City, MO; KOCO-TV, the ABC affiliate in Oklahoma City, OK; WNAC-TV, the Fox affiliate in Providence, R.I.; WDTN-TV, the ABC affiliate in Dayton, OH; KITV-TV, the ABC affiliate in Honolulu, HI; WAPT-TV, the ABC affiliate in Jackson Jackson. 1 City (1990 pop. 37,446), seat of Jackson co., S Mich., on the Grand River; inc. 1857. It is an industrial and commercial center in a farm region. , MS; and KHBS-TV, the ABC affiliate in Fort Smith, AR, and its satellite, KHOG-TV, the ABC affiliate in Fayetteville, AR. Hearst-Argyle Television also owns and operates Hearst- Argyle Television Productions, which is engaged in the production of programming for cable networks and broadcast stations. In addition, Hearst-Argyle Television provides management services for WWWB-TV, the WB affiliate in Tampa, FL; WPBF-TV, the ABC affiliate in West Palm Beach, FL; and two radio stations, WBAL-AM and WIYY-FM, Baltimore, MD; and programming services to KCWB-TV, the WB affiliate in Kansas City, MO. These managed stations, other than KCWB KCWB Kansas City Westport Belt (railroad) , which is operated through a local marketing agreement, are owned by The Hearst Corporation The Hearst Corporation is a privately-held American-based media conglomerate based in the Hearst Tower in New York City, USA. Founded by William Randolph Hearst as an owner of newspapers, the company's holdings now include a wide variety of media. , which is privately held. The Company recently announced plans to exchange WNAC- TV and WDTN-TV with STC STC Supplemental Type Certificate (FAA) STC Society for Technical Communication STC Subject to Change STC Surf the Channel (website) STC Sound Transmission Class STC Singapore Turf Club Broadcasting, Inc., for KSBW-TV, Monterey-Salinas, CA, and WPTZ-TV/WNNE-TV, Plattsburgh, NY/Burlington, VT. That transaction, pending regulatory approval, is expected to be completed by early in the third quarter. Hearst-Argyle Television's Series A Common Stock trades on the NASDAQ National Market under the trading symbol Trading symbol See: Ticker symbol "HATV." This news release contains 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 are subject to risks and uncertainties. Forward looking statements include the information concerning the Company's advertising sales "pacing" in the first quarter, and those preceded by, followed by, or that include the words "believes," "expects," "anticipates," "could," or similar expressions. For these statements, the Company claims the protection of the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. for forward-looking statements contained in 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. The following important factors, among them, could affect the future results of the Company and could cause those results to differ materially from those expressed in each forward-looking statement: material adverse changes in economic conditions in the markets served by the Company; future regulatory actions and conditions in the television stations' operating areas; the possibility that currently unanticipated difficulties may arise in integrating the operations of the Company's predecessors; and competition from others in the broadcast television markets served by the business. Financial results and related notes follow. -0-
Hearst-Argyle Television, Inc.
Condensed Consolidated Statements of Operations
Three Months Ended Year Ended
December 31 December 31
1996 (1) 1997 (3) 1996 (2) 1997 (4)
(In thousands, except per share data)
Total revenues $ 21,798 $ 112,365 $ 73,294 $ 198,266
Station operating
expenses 10,095 45,177 37,639 87,603
Amortization of
program rights 1,017 10,928 4,725 17,485
Depreciation and
amortization 6,738 9,230 23,965 29,105
Station operating
income 3,948 47,030 6,965 64,073
Corporate general and
administrative expenses 782 2,980 4,285 6,217
Non-cash compensation
expense 169 -- 675 3,518
Operating income 2,997 44,050 2,005 54,338
Interest expense, net 4,521 11,960 16,566 28,579
Income/(loss) before
income taxes and
extraordinary item (1,524) 32,090 (14,561) 25,759
Income taxes -- (13,000) -- (16,418)
Income/(loss) before
extraordinary item (1,524) 19,090 (14,561) 9,341
Extraordinary item,
early retirement
of debt -- (16,212) -- (16,212)
Net income/(loss) (1,524) 2,878 (14,561) (6,871)
Less preferred stock
dividends (355) (356) (829) (1,422)
Income/(loss) applicable
to common stockholders $ (1,879) $ 2,522 $ (15,390) $ (8,293)
Earnings/(loss) per
common share - basic
Before extraordinary
item $ (0.17) $ 0.38 $ (1.37) $ 0.33
Extraordinary item -- (0.33) -- (0.68)
Net income/(loss) $ (0.17) $ 0.05 $ (1.37) $ (0.35)
Number of common shares
used in the
calculation (5) 11,347 49,195 11,246 23,808
Earnings/(loss) per
common share - diluted
Before extraordinary
item $ (0.17) $ 0.38 $ (1.37) $ 0.33
Extraordinary item -- (0.33) -- (0.68)
Net income/(loss) $ (0.17) $ 0.05 $ (1.37) $ (0.35)
Number of common
shares used in
the calculation 11,347 49,315 11,246 23,853
Supplemental Financial
Data:
Broadcast cash
flow (7) $ 10,698 $ 56,074 $ 31,889 $ 92,526
Broadcast cash flow
margin 49.1% 49.9% 43.5% 46.7%
Operating cash flow (8) $ 9,916 $ 53,094 $ 27,604 $ 86,309
Operating cash flow
margin 45.5% 47.3% 37.7% 43.5%
After tax cash flow (9) $ 5,214 $ 28,320 $ 9,404 $ 38,446
Program payments $ 1,005 $ 11,114 $ 3,766 $ 18,137
Notes to Condensed Consolidated Statements of Operations
(1) Includes results from WZZM, WAPT, KITV, WGRZ, the Arkansas
Stations and the Company's share of the Clear Channel Venture for the
entire period.
(2) Includes results from WZZM, WAPT, KITV, WGRZ for the entire
period, WNAC from January 1 through June 30, the Company's share of
the Clear Channel Venture from July 1 through December 31 and the
Arkansas Stations from June 1 through December 31.
(3) Includes results from WAPT, KITV, the Arkansas Stations,
WLWT, KOCO, the Company's share of the Clear Channel Venture, the
Hearst Broadcast Group and fees from the Managed Stations for the
entire period.
(4) Includes the results from i) WZZM and WGRZ for January, only;
ii) WAPT, KITV, the Arkansas Stations and the Company's share of the
Clear Channel Venture for the entire period; iii) WLWT and KOCO from
February 1 through December 31; and iv) the Hearst Broadcast Group and
fees from the Managed Stations for September through December 31.
The Hearst Broadcast Group includes WCVB, WBAL, WTAE, WISN, KMBC
and WDTN. The Managed Stations include WWWB, WPBF, KCWB and WBAL radio
three of which are owned by Hearst and the other of which Hearst
provides certain services to under a local marketing agreement, and
are managed by Hearst-Argyle in exchange for a management fee.
(5) Basic earnings/(loss) per share uses the weighted average
number of common shares outstanding for the period presented, in
accordance with FASB Statement No. 128.
(6) Diluted earnings/(loss) per share uses the weighted average
number of shares outstanding for the period presented including the
net effect of all dilutive potential common shares outstanding during
the period, in accordance with FASB Statement No. 128.
(7) Broadcast cash flow is defined as station operating income,
plus depreciation and amortization, plus amortization of program
rights minus program payments. Broadcast cash flow is presented here
not as a measure of operating results and does not purport to
represent cash provided by operating activities. Broadcast cash flow
should not be considered in isolation or as a substitute for measures
of performance prepared in accordance with generally accepted
accounting principles.
(8) Operating cash flow is defined as operating income, plus
depreciation and amortization, plus amortization of program rights,
minus program payments plus non-cash compensation expense. Operating
cash flow is presented here not as a measure of operating results, but
rather as a measure of debt service ability. Operating cash flow does
not purport to represent cash provided by operating activities and
should not be considered in isolation or as a substitute for measures
of performance prepared in accordance with generally accepted
accounting principles.
(9) After-tax cash flow is defined as income/(loss) before
extraordinary loss plus depreciation and amortization. After tax cash
flow does not present a measure of operating results and does not
purport to represent cash provided by operating activities. After tax
cash flow should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with generally accepted
accounting principles. This measure may not be comparable to similarly
titled measures used by other companies.
-0-
Hearst-Argyle Television, Inc.
Pro Forma Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended Year Ended
December 31 December 31
1996 1997 1996 1997
(In thousands, except per share data)
Total revenues (1) $ 104,077 $ 112,365 $ 370,249 $ 387,782
Station operating
expenses (2) 40,130 44,716 161,103 168,443
Amortization of
program rights 11,555 10,928 45,522 42,978
Depreciation and
amortization (3)(4) 9,284 9,230 37,135 36,240
Station operating
income 43,108 47,491 126,489 140,121
Corporate general
and administrative
expenses 2,750 2,750 11,000 11,000
Operating income 40,358 44,741 115,489 129,121
Interest expense,
net (5) 9,594 9,594 38,377 38,377
Income before income
taxes 30,764 35,147 77,112 90,744
Income taxes 12,792 14,614 32,063 37,732
Net income 17,972 20,533 45,049 53,012
Less preferred stock
dividends (6) (356) (356) (1,422) (1,422)
Earnings applicable to
common stockholders $ 17,616 $ 20,177 $ 43,627 $ 51,590
Earnings per common
share - Basic $ 0.33 $ 0.37 $ 0.81 $ 0.96
Pro Forma number of
common shares
outstanding (7) 53,828 53,828 53,828 53,828
Earnings per common
share - Diluted $ 0.33 $ 0.37 $ 0.81 $ 0.96
Pro Forma number of
common shares
outstanding (8) 53,866 53,948 53,863 53,873
Supplemental Financial Data:
Broadcast cash flow (9) $ 51,796 $ 56,535 $ 159,952 $ 175,834
Broadcast cash flow margin 49.8% 50.3% 43.2% 45.3%
Operating cash flow (10) $ 49,046 $ 53,785 $ 148,952 $ 164,834
Operating cash flow margin 47.1% 47.9% 40.2% 42.5%
After tax cash flow (11) $ 27,256 $ 29,763 $ 82,184 $ 89,252
Program payments $ 12,151 $ 11,114 $ 49,194 $ 43,505
Long-term debt, net of
cash (12) N/A $ 487,000 N/A $ 487,000
The pro forma condensed consolidated statements of operations
include the five Argyle stations, Argyle's share of WNAC/WPRI
broadcast cash flows, the six Hearst Broadcast Group stations plus the
fees associated with Hearst-Argyle's management of the Managed
Stations and reflect the recent issuance of 4.2 million shares of
Series A Common Stock, 2.7 million shares of Series B Common Stock and
$500 million in Senior Notes. The pro forma statements do not include
the effects of the Swap Transaction with STC Broadcasting where the
Company will exchange WNAC and WDTN plus $25 million for WPTZ/WNNE
(Burlington-Plattsburgh) and KSBW (Monterey).
Notes to Pro Forma Condensed Consolidated Statements of Operations
(1) Includes the effect of the Company's share of WNAC/WPRI
broadcast cash flow in total revenues.
(2) Reflects the elimination of certain expenses relating to
employees who have either been terminated or will be terminated and
not replaced and certain other expenses which would have been
eliminated under the Company's transition plan for the Gannett Swap.
(3) Reflects change in depreciation expense due to purchase
accounting adjustments to equipment and buildings, net of depreciation
already recorded in the historical financial statements. The estimated
useful lives used for equipment range from 3 to 25 years and the
estimated useful life used for buildings range from 25 to 40 years.
(4) Reflects amortization of intangible assets resulting from
purchase accounting adjustments, net of amortization already recorded
in the historical financial statements. The estimated useful lives
used for these intangible assets were as follows: FCC licenses,
network affiliation agreements and goodwill -- 40 years; other
intangibles -- 2 to 5 years
(5) Reflects interest expense on the pro forma debt and the
amortization of deferred financing costs over the period of the
related financings.
Three Months Ended Year Ended
1996 1997 1996 1997
The Senior Notes due 2007 at
an interest rate of 7.0% $2,188 $2,188 $8,750 $8,750
The Senior Notes due 2018 at
an interest rate of 7.0% 3,500 3,500 14,000 14,000
The Senior Notes due 2027 at
an interest rate of 7.5% 3,281 3,281 13,125 13,125
Commitment fees for the
unused Credit Facility 313 313 1,250 1,250
Non-cash interest charges 562 562 2,252 2,252
Interest income (250) (250) (1,000) (1,000)
$9,594 $9,594 $38,377 $38,377
(6) Reflects preferred stock dividends relating to the preferred
stock issued in conjunction with the acquisition of the Arkansas
Stations. The dividend calculation is shown here for purposes of
calculating earnings per common share.
(7) Basic earnings/(loss) per share uses the weighted average
number of shares outstanding for the period presented, in accordance
with FASB Statement No. 128.
(8) Diluted earnings/(loss) per share uses the weighted average
number of shares outstanding for the period presented plus the effect
of all dilutive potential common shares outstanding during the period,
in accordance with FASB Statement No. 128.
(9) Broadcast cash flow is defined as station operating income,
plus depreciation and amortization, plus amortization of program
rights, minus program payments. Broadcast cash flow is presented here
not as a measure of operating results and does not purport to
represent cash provided by operating activities. Broadcast cash flow
should not be considered in isolation or as a substitute for measures
of performance prepared in accordance with generally accepted
accounting principles.
(10) Operating cash flow is defined as operating income, plus
depreciation and amortization, plus amortization of program rights,
minus program payments plus non-cash compensation expense. Operating
cash flow is presented here not as a measure of operating results and
does not purport to represent cash provided by operating activities.
Operating cash flow should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
generally accepted accounting principles.
(11) After-tax cash flow is defined as net income plus
depreciation and amortization. After tax cash flow does not present a
measure of operating results and does not purport to represent cash
provided by operating activities. This calculation does not give
effect to deferred taxes or other historical Argyle tax benefits.
After tax cash flow should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
generally accepted accounting principles. This measure may not be
comparable to similarly titled measures used by other companies.
(12) Long-term debt, net of cash represents total long-term debt
less cash (does not give effect to total working capital).
CONTACT: Harry T. Hawks This article is about the Street Fighter character. For other uses, see Thunderhawk. T. Hawk, or Thunder Hawk ( Senior Vice President & Chief Financial Officer (212) 887-6823 or Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs W. Campo Manager, Investor Relations Investor relations The process by which the corporation communicates with its investors. (212) 887-6827 |
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