LIN TV Corp. Reports First-Quarter 2002 Results.Business Editors 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. , R.I.--(BUSINESS WIRE)--May 14, 2002 LIN TV LIN TV Corporation is an American holding company that operates 31 television stations. History LIN TV's roots trace back to the founding of its former parent, LIN Broadcasting Corporation, in the mid 1960s. Corp. (NYSE NYSE See: New York Stock Exchange : TVL TVL Travel TVL TV Lines (resolution) TVL Transvaal TVL The Vampire Lestat (Anne Rice) TVL TV Land (television station) TVL Tenth-Value Layer ), the parent of LIN Television Corporation and LIN Holdings Corp., today reported financial results for the quarter ended March 31, 2002. The results are the first that LIN TV has reported since its initial public offering on May 3, 2002, when the Company issued 19.5 million shares at $22.00 per share, yielding gross proceeds of $430.1 million. Reported Results LIN TV's net loss for the quarter was $5.8 million, or $0.23 per share, excluding the net impact of the impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charge and one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. tax expense discussed below, compared to a net loss of $21.8 million, or $0.85 per share, during the first quarter of 2001. Including the impairment charge and tax expense, LIN TV's net loss for the quarter was $56.4 million, or $2.20 per share. Revenues during the quarter were $62.5 million, an increase of 7.7% over revenues of $58.0 million during the comparable period in 2001. Broadcast cash flow was $22.0 million, an increase of 25.1% over broadcast cash flow of $17.6 million in the first quarter of 2001. Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become , which is broadcast cash flow less cash corporate expense and including cash distributions from LIN TV's 20%-owned joint venture with 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. , for the first quarter of 2002 was $19.7 million, flat with the first quarter of 2001 when the Company received $4.8 million in cash distributions from equity investments versus none in 2002. In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with Statement of Financial Accounting Standards No. 142, the Company has discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: the amortization of goodwill and broadcast licenses. Based on impairment testing performed by a third party, the Company has recorded an impairment charge of $47.2 million ($30.7 million net of tax benefit). As a result of such accounting, certain deferred tax liabilities will no longer reverse on a scheduled basis and can no longer be utilized to support the realization (specification) realization - A UML semantic relationship between a classifier that specifies a contract and another classifier that guarantees to carry it out. [Handout by Mr. David Gillibrand]. of deferred tax assets associated with goodwill and broadcast licenses. Accordingly, the Company recorded a non-cash charge 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. during the first quarter totaling $19.9 million to income tax expense, to fully reserve for the Company's deferred tax assets. Capital expenditures for the first quarter of 2002 were $5.2 million. 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 Results LIN TV also reported pro forma results to reflect the acquisitions of Sunrise Sunrise, city (1990 pop. 64,407), Broward co., SE Fla., a residential suburb 8 mi (13 km) W of Fort Lauderdale; inc. 1961 as Sunrise Golf Village. It is a major office and commercial center and the site of Sawgrass Mills, one of the largest malls in the United States. Television Corp., which occurred on May 2, 2002, and WJPX-TV in Puerto Rico Puerto Rico (pwār`tō rē`kō), island (2005 est. pop. 3,917,000), 3,508 sq mi (9,086 sq km), West Indies, c.1,000 mi (1,610 km) SE of Miami, Fla. , which occurred on July July: see month. 25, 2001, as if they had occurred at the beginning of the earliest period presented. A reconciliation of GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). to 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. is included in the attached financial exhibits. Pro forma broadcast cash flow for the first quarter of 2002 was $24.9 million, an increase of 19.7% over pro forma broadcast cash flow of $20.9 million in the comparable 2001 period. Pro forma net revenue in the quarter ended March 31, 2002 was $76.4 million, a 5.8% increase compared to $72.2 million in the first quarter of 2001. Balance Sheet Total debt outstanding on March 31, 2002 was $1,076.2 million and cash and cash equivalent balances at quarter-end were $10.8 million. Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: Leverage at the end of the quarter, as defined in LIN Television's senior secured credit facility, was 6.8X compared to a covenant covenant (kŭv`ənənt), agreement entered into voluntarily by two or more parties to do or refrain from doing certain acts. In the Bible and in theology the covenant is the agreement or engagement of God with man as revealed in the maximum limit of 7.4X. After applying cash from the IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. to reduce debt, total debt outstanding is $881.4 million, with $128.9 million in cash balances as of May 8, 2002. As a result, pro forma consolidated leverage is 6.4X net of cash and including the Sunrise stations' operating results. Shares outstanding after giving effect to the IPO and Sunrise acquisition are 50.1 million not including options and phantom units of 3.8 million. CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Comment Gary Chapman Gary Chapman may refer to:
v. thrilled, thrill·ing, thrills v.tr. 1. To cause to feel a sudden intense sensation; excite greatly. 2. To give great pleasure to; delight. See Synonyms at enrapture. to be heading into a new era for LIN TV. Our IPO allowed us to decrease our leverage and, as a public company, we now have the ability to issue stock if we find appropriate acquisition opportunities. "We are also pleased by what we saw from an operational perspective during the first quarter. The advertising environment was more favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. following one of the most difficult periods we have seen. We expect that the Sunrise stations we have just acquired will provide new opportunities as we invest in their markets. "Our cost control efforts showed some benefits in the first quarter, and we expect the implementation of clustering Using two or more computer systems that work together. It generally refers to multiple servers that are linked together in order to handle variable workloads or to provide continued operation in the event one fails. Each computer may be a multiprocessor system itself. to reduce operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. as we move deeper into the year. In short, I could not be more pleased with LIN TV's position and prospects today." Guidance Revenue pacings for the second quarter, including the Sunrise stations, are currently in the high single-digit to low double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. growth range. Expenses are expected to decline slightly, resulting in pro forma broadcast cash flow growth for the second quarter in the low double-digit range, which is consistent with previous guidance. Recent Transactions Subsequent to the end of the first quarter of 2002, LIN TV completed its acquisition of Sunrise, which includes seven stations in six markets. As part of the Sunrise acquisition LIN TV completed the disposition Act of disposing; transferring to the care or possession of another. The parting with, alienation of, or giving up of property. The final settlement of a matter and, with reference to decisions announced by a court, a judge's ruling is commonly referred to as disposition, regardless of of WNAC WNAC Women Nationally Active for Christ (Antioch, TN) in Providence, which it now operates under an LMA LMA left mentoanterior (position of fetus). . LIN TV anticipates completing the sale of Sunrise's North Dakota North Dakota, state in the N central United States. It is bordered by Minnesota, across the Red River of the North (E), South Dakota (S), Montana (W), and the Canadian provinces of Saskatchewan and Manitoba (N). stations in the second quarter of 2002. About LIN TV LIN TV operates 26 television stations in 17 markets, two of which are LMAs. LIN TV's stations under management and LMAs are:
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Market Station DMA Channel Network
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Indianapolis WISH-TV 25 8 CBS
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New Haven WTNH-TV 28 8 ABC
WCTX-TV 59 UPN
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Grand Rapids WOOD-TV 38 8 NBC
WOTV-TV 41 ABC
WXSP-CA LPs UPN
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Norfolk WAVY-TV 42 10 NBC
WVBT-TV 43 Fox
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Buffalo WIVB-TV 47 4 CBS
WNLO-TV 23 Ind.(a)
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Providence WPRI-TV 49 12 CBS
WNAC-TV 64 Fox (LMA)
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Austin KXAN-TV 54 36 NBC
KNVA-TV 54 WB (LMA)
KBVO-CA LP's Telefutura
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Dayton WDTN-TV 60 2 ABC
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Flint WEYI-YV 64 25 NBC
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Toledo WUPW-TV 68 36 Fox
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Decatur(b) WAND-TV 82 17 ABC
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Fort Wayne WANE-TV 104 15 CBS
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Springfield WWLP-TV 105 22 NBC
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Abilene KRBC-TV 162 9 NBC
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Lafayette WLFI-TV 194 18 CBS
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San Angelo KACB-TV 199 3 NBC
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San Juan WAPA-TV NA 4 Independent
WJPX-TV 24 Independent
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(a) WNLO WNLO-TV (CW 23 WNLO) is the CW affiliate for the Buffalo, New York, The United States of America television market, with transmitter facilities located at 870 Whitehaven Road on Grand Island. It is owned by LIN TV, which also owns CBS affiliate WIVB. will become affiliated af·fil·i·ate v. af·fil·i·at·ed, af·fil·i·at·ing, af·fil·i·ates v.tr. 1. To adopt or accept as a member, subordinate associate, or branch: with UPN UPN User Principal Name (Microsoft Windows 2000) UPN United Paramount Network UPN Unión del Pueblo Navarro (Navarrese People Union) UPN Umgekehrte Polnische Notation in January January: see month. 2003 (b) Operated pursuant to a management services agreement. LIN TV also owns approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 20% of KXAS-TV KXAS-TV, channel 5, is the NBC station for the Dallas-Fort Worth Metroplex. The station is licensed to Fort Worth, with its transmitter located in Cedar Hill. Its analog broadcasts are on channel 5 while its HDTV broadcasts are on channel 41. in Dallas, Texas “Dallas” redirects here. For other uses, see Dallas (disambiguation). The City of Dallas (pronounced [ˈdæl.əs] or [ˈdæl. and KNSD-TV in San Diego, California “San Diego” redirects here. For other uses, see San Diego (disambiguation). San Diego is a coastal Southern California city located in the southwestern corner of the continental United States. As of 2006, the city has a population of 1,256,951. through a joint venture with NBC. LIN TV is a 50% investor in Banks Broadcasting Banks Broadcasting is a minority-owned broadcasting company which owns one television station in the western United States. 50% of the company is owned by LIN TV, a large group broadcaster with clusters in the Northeast and Midwest and scattered stations elsewhere. , Inc., which owns KWCV-TV in Wichita, Kansas
Wichita, also known as the Air Capital of the World, is the largest city in the U.S. state of Kansas, as well as a major aircraft manufacturing hub and cultural center. and KNIN-TV KNIN-TV, also known as K9 Entertainment Television, is an affiliate of the CW TV network, and serves the Boise, Idaho area. The station is owned by Banks Broadcasting and operates on VHF channel 9. in Boise, Idaho “Boise” redirects here. For other uses, see Boise (disambiguation). Boise is the capital and most populous city of the U.S. state of Idaho. It is the county seat of Ada County and the principal city of the Boise metropolitan area. . Financial information and overviews of LIN TV's stations are available on the Company's website at www.lintv.com. Conference Call LIN TV will hold a conference call to discuss the company's 2002 first-quarter results TODAY, Tuesday Tuesday: see week. , May 14, 2002, at 10 am ET. To participate in the call, please call (800) 289-0436 (U.S. callers) or (913) 981-5507 (international callers) approximately 10 minutes prior to the scheduled start of the call. The call can also be accessed via the investor relations Investor relations The process by which the corporation communicates with its investors. section of the company's website at www.lintv.com (listen-only). If you are unable to participate in the live call, a taped replay will be available from 1:00 pm ET today until Tuesday, May 21, 2002 at 8:00 pm ET. The replay can be accessed by dialing (888) 203-1112 (U.S. callers) or (719) 457-0820 (international callers), and using passcode 515551. The replay can also be accessed at the company's website from 1:00 pm on May 14, 2002 until 8:00 pm on May 21, 2002. 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. Statement This press release may include statements that may constitute "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. ," including its estimates of future business prospects or financial results and statements containing the words "believe," "estimate," "project," "expect," or similar expressions. Forward-looking statements inherently involve risks and uncertainties, including, among other factors, general economic conditions, demand for advertising, competition for audience and programming, government regulations and new technologies, that could cause actual results of LIN TV to differ materially from the forward-looking statements. Factors that could contribute to such differences include the risks detailed in the Company's registration statements and periodic reports filed with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revision (programming) revision - A release of a piece of software which is not a major release or a bugfix, but only introduces small changes or new features. or changes after the date of this release.
LIN TV CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands)
Three months ended March 31,
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2002 2001
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(unaudited) (unaudited)
Net revenues $ 62,523 $ 58,028
Operating costs and expenses:
Direct operating 19,957 19,737
Selling, general and administrative 15,864 15,647
Corporate 2,128 2,390
Amortization of program rights 4,682 5,366
Depreciation and amortization of intangible
assets 5,722 16,266
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Total operating costs and expenses 48,353 59,406
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Operating income 14,170 (1,378)
Other (income) expense:
Interest expense 25,397 24,273
Investment income (1,063) (930)
Share of (income) loss in equity investments (1,415) 1,386
Loss (gain) on derivative instruments (1,144) -
Other, net (75) (205)
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Total other expense, net 21,700 24,524
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Loss before provision from (benefit from)
income taxes (7,530) (25,902)
Provision for (benefit from) income taxes 18,190 (4,127)
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Loss before cumulative effect of change in
accounting principle (25,720) (21,775)
Cumulative effect of change in accounting
principle, net of tax benefit of $16,525 30,689 -
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Net loss $ (56,409) $ (21,775)
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Basic and diluted earnings per common share:
Loss before cumulative effect of change in
accounting principle (1.00) (0.85)
Cumulative effect of change in accounting
principle, net of tax (1.19) -
Net loss (2.20) (0.85)
Weighted - average number of common shares
outstanding used in calculating basic and
diluted earnings per common share 25,688 25,688
Note: LIN Holdings Corp. Statements of Operations is essentially the
same as LIN TV Corp.'s, with the exception of the basic and
diluted earnings per common share calculation.
The following are certain results for LIN Television Corporation
as a stand-alone entity:
Interest expense 15,358 17,482
Total other expense, net 11,661 17,733
Net loss (29,199) (21,411)
Supplemental Financial Data:
Broadcast cash flow $ 21,961 $ 17,553
Adjusted EBITDA 19,720 19,727
At March 31, 2002
Debt outstanding $ 1,076,160
Cash and cash equivalents 10,820
LIN TV CORP.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Includes the operations of WJPX-TV and Sunrise Television
(In thousands)
Three months ended March 31,
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2002 2001
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Net revenues $ 76,366 $ 72,208
Operating costs and expenses:
Direct operating 24,472 24,357
Selling, general and administrative 20,278 20,203
Corporate 1,815 2,078
Amortization of program rights 6,300 6,696
Depreciation and amortization of
intangible assets 7,645 18,339
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Total operating costs and expenses 60,510 71,673
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Operating income 15,856 535
Other (income) expense:
Interest expense 23,217 22,496
Investment income (313) (179)
Share of (income) loss in equity investments (1,415) 1,386
Loss (gain) on derivative instruments (1,144) -
Other, net 240 (19)
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Total other expense, net 20,585 23,684
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Loss before benefit from income taxes (4,729) (23,149)
Provision for (benefit from) income taxes 19,170 (3,159)
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Loss before cumulative effect of change in
accounting principle (23,899) (19,990)
Cumulative effect of change in accounting
principle, net of tax benefit of $16,525 30,689 -
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Net loss $ (54,588) $ (19,990)
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Basic and diluted earnings per common share:
Loss before accumulated effect of change in
accounting principle (0.93) (0.78)
Accumulated effect of change in accounting
principle, net of tax (1.19) -
Net loss (2.13) (0.78)
Weighted - average number of common shares
outstanding used in calculating basic and
diluted earnings per common share 25,688 25,688
Supplemental Pro Forma Financial Data:
Broadcast cash flow $ 24,930 $ 20,851
Adjusted EBITDA 23,002 23,337
At May 8, 2002
Debt outstanding $ 881,359
Cash and cash equivalents 128,861
Note: Broadcast cash flow is defined as adjusted EBITDA plus cash
corporate expenses less capital distributions from equity
investments. Corporate expenses primarily include the costs
of our management group, office space and related expenses,
legal, auditing, financial systems and the Hicks Muse
monitoring and oversight fees. Our management group plays a
key role in the operations of our stations including
programming, accounting, engineering, legal and personnel.
We believe the presentation of broadcast cash flow is
releveant and useful because it is a measurement used by
lenders to measure our ability to service our debt, it is a
measurement used by industry analysts to determine the
market value of our television stations and it is a
measurement industry analysts use when evaluating our
operating performance. Our management uses broadcast cash
flow, among other things, in evaluating the operating
performance of our stations, to value stations targeted for
acquisition and as a component of incentive bonus payments
for our executive officers and key station personnel.
Broadcast cash flow is not a measure of performance
calculated in accordance with generally accepted accounting
principles. Broadcast cash flow should not be considered in
isolation of, or as a substitute for net income or loss,
cash flows from operating activities and other income and
cash flow statement data prepared in accordance with
generally accepted accounting principles or as a measure of
liquidity or profitability. Broadcast cash flow as
determined may not be comparable to the broadcast cash flow
measures reported by other companies. In addition, these
measures do not represent funds available for discretionary
use.
LIN TV CORP.
UNAUDITED RECONCILIATION BETWEEN ACTUAL AND PRO FORMA
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Includes the operations of WJPX-TV and Sunrise Television
(In thousands)
Three Months ended March 31,
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2002 2001
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Adjusted EBIDTA :
Operating income $ 14,170 (1,378)
Plus:
Amortization of program rights 4,682 5,366
Depreciation and amortization of
intangible assets 5,722 16,266
Capital distributions from equity
investments - 4,789
Non-cash expenses (113) (225)
Less:
Program payments (4,741) (5,091)
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Adjusted EBIDTA 19,720 19,727
Plus: Cash corporate expenses 2,241 2,615
Less: Capital distributions from equity
investments - (4,789)
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Broadcast Cash Flow $ 21,961 $ 17,553
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Pro forma adjustments:
Plus:
Acquisition of WJPX-TV - 306
Acquisition of Sunrise Television stations 2,969 2,992
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Pro forma Broadcast Cash Flow $ 24,930 $ 20,851
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GAAP net loss $ (56,409) $ (21,775)
Acquisition of Sunrise Television 688 $ 835
Acquisition of WJPX-TV - $ 80
SSG dividends (488) $ (488)
Hicks Muse monitoring and oversight fee 203 $ 203
Senior Credit Facility 1,417 $ 5,389
Senior Discount Notes - $ (1,503)
Senior Notes - $ (2,731)
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Pro forma net loss $ (54,588) $ (19,990)
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