JACOR ANNOUNCES FINANCIAL RESULTS
JACOR ANNOUNCES FINANCIAL RESULTS CINCINNATI, March 18 /PRNewswire/ -- Jacor Communications, Inc.
(NASDAQ: JCORC) reported financial results for the fourth quarter and full year ended Dec. 31, 1991.
For the properties owned by the company for the entire fourth quarter and 12 months of both 1991 and 1990, revenue decreased 7.8 percent in the fourth quarter and 1.0 percent year-to-year, while operating income, after adjusting prior year periods for the excess non-cash charges, decreased 30.0 percent quarter-to-quarter and 6.6 percent for the year. According to the broadcast accounting firm of Miller, Kaplan, Arase & Co., radio revenue nationwide declined 2.8 percent from 1990 to 1991 -- the first annual decrease in radio revenue in the last 30 years. For the three months ended Dec. 31, 1991, the company had operating income of $1,732,000, a decrease of 36.0 percent from that of the fourth quarter of 1990. Operating income of $6,062,000 for the entire year was down 6.6 percent in comparison to 1990. These decreases, as well as decreases in net revenue and broadcast operating expenses for each period, resulted primarily from the sale of radio stations WMJI and WYHY (January 1991) and Eastman Radio, Inc. (August 1990). The 1990 fourth quarter and 1990 year-to-date operating income, however, included non-cash charges of $182,000 and $1,779,000 in excess of the current periods resulting from the amortization of a non-compete agreement. As a result of the station sales in January of 1991, the company reported net income per commonm share for the full year of 1991 of $.10 compared to a net loss per share of $2 for 1990. For the fourth quarter of 1991, the company reported a net loss of $.23 per common share, compared to a net loss of $.88 for the 1990 period. The 1990 fourth quarter, however, included almost $8 million in charges against income for restructuring expense, primarily related to debt restructuring, provisions to write-off deferred acquisition costs and related assets, and net provisions to divest non-radio station properties. Jacor's efforts to restructure its debt obligations are continuing. The company is currently in default under its credit agreement with its senior lenders with respect to certain financial covenants and payment obligations. These include the non-payment of a termination fee in the amount of approximately $7,082,000, assessed by The First National Bank of Chicago as a result of that bank's election to terminate its interest rate protection agreement with the company. Until resolved, this settlement payment constitutes additional indebtedness. Jacor also announced that it has decided to suspend the monthly interest payments on its senior debt, commencing with the payment due March 16, 1992, as well as on certain other subordinated debt until such time as the restructuring is completed. Jacor Communications, Inc., headquartered in Cincinnati, currently owns 11 radio stations, a cable television system and the Georgia Network. The company's stations are located in Atlanta, Cincinnati, Denver, Jacksonville, Knoxville and Tampa. JACOR COMMUNICATIONS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS
For the three months and twelve months ended Dec. 31, 1991 and 1990
(In thousands, except per share amounts) Three Months Ended Dec. 31, 1991 1990 Broadcast revenue $ 18,121 $ 22,593 Less agency commissions 1,950 2,487 Net revenue 16,171 20,106 Broadcast operating expenses 11,891 14,702 Depreciation and amortization 1,934 2,031 Corporate general and administrative expenses 614 666 Operating income 1,732 2,707 Interest expense (4,090) (5,081) Interest income 126 272 Gain on sale of radio stations --- --- Restructuring expense --- (7,969) Other income (expense), net (20) (162) Income (loss) before income taxes and extraordinary item (2,252) (10,233) Income tax credit (expense) 688 --- Loss before extraordinary item (1,564) (10,233) Extraordinary item (688) --- Net income (loss) $(2,252) $(10,233) Income (loss) per common share: Before extraordinary item $(.16) $(.88) Extraordinary item (.07) --- Net income (loss per common share) $(.23) $(.88) Number of common shares used in per share computation 9,003 9,984 Twelve Months Ended Dec. 31, 1991 1990 Broadcast revenue $ 72,444 $ 89,789 Less agency commissions 8,206 9,753 Net revenue 64,238 80,036 Broadcast operating expenses 48,206 60,437 Depreciation and amortization 7,288 10,294 Corporate general and administrative expenses 2,682 2,812 Operating Income 6,062 6,493 Interest expense (16,774) (18,427) Interest income 548 699 Gain on sale of radio stations 13,014 --- Restructuring expense --- (8,181) Other income (expense), net (302) (250) Income (loss) before income taxes and extraordinary item 2,548 (19,666) Income tax credit (expense) (2,912) (1,080) Loss before extraordinary item (364) (20,746) Extraordinary item 1,832 --- Net income (loss) $ 1,468 $(20,746) Income (loss) per common share: Before extraordinary item $(.09) $(2.00) Extraordinary item .19 --- Net income (loss per common share) $ .10 $(2.00) Number of common shares used in per share computation 9,582 9,978 -0- 3/18/92 /CONTACT: R. Christopher Weber of Jacor Communications, Inc., 513-621-1300/ (JCORC) CO: Jacor Communications, Inc. ST: Ohio IN: ENT SU: ERN
KK -- CL021 -- 9332 03/18/92 15:07 EST
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|Date:||Mar 18, 1992|
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