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GRANITE ANNOUNCES 1992 FINANCIAL RESULTS AND AMENDMENTS TO SENIOR BANK LOAN FACILITY

 NEW YORK, March 1 /PRNewswire/ -- Granite Broadcasting Corporation (NASDAQ: GBTVK) today announced its operating results for the fourth quarter and year ended Dec. 31, 1992. The company also announced that its bank group has agreed to certain amendments to its Senior Bank Loan Agreement which will provide senior management with more flexibility to pursue the acquisition of additional television stations.
 For the year ended Dec. 31, 1992, Granite's net revenue was $35,957,000 compared with $33,426,000 in 1991, a 7.6 percent increase. Station operating cash flow (operating income before corporate, depreciation and amortization expense) for the year was $14,319,000 compared with $13,473,000 in 1991, a 6.3 percent increase. Corporate expense increased substantially during 1992 largely as a result of the costs associated with being a company with publicly-traded securities and the resumption of certain executive compensation during 1992 which was not incurred during 1991. As a result, operating cash flow (operating income before depreciation and amortization) for the year was $13,127,000 compared with $12,815,000 in 1991, a 2.4 percent increase. Granite's operating cash flow margin was 36.5 percent during 1992 compared with 38.3 percent during the same period of 1991.
 For the fourth quarter of 1992, Granite's net revenue was $9,507,000 compared with $9,413,000 in 1991, a 1 percent increase. Station operating cash flow (operating income before corporate, depreciation and amortization expense) for the three months ended Dec. 31, 1992 was $3,910,000 compared with $4,264,000 in 1991, an 8.3 percent decrease. Operating cash flow (operating income before depreciation and amortization) for the fourth quarter was $3,559,000 compared with $4,227,000 in 1991, a 15.8 percent decrease.
 Granite's net loss before extraordinary item for the year was $4,989,000 compared with $8,458,000 in 1991, a decrease of 41 percent. However, as a result of an extraordinary charge of $5,709,000 on the early extinguishment of debt associated with the company's private placement during the third quarter of $60 million of 12.75 percent Rule 144A Senior Subordinated Debentures due Sept. 1, 2002, and the initial public offering completed in January 1992, the company's net loss for the year was $10,698,000. In January 1993, the company completed the exchange of its publicly-registered 12.75 percent Senior Subordinated Debentures due Sept. 1, 2002, for all the outstanding 12.75 percent Rule 144A Senior Subordinated Debentures due Sept. 1, 2002.
 "After experiencing substantial growth in net revenue and station operating cash flow during the first nine months of 1992, the company had only a small growth in net revenue and experienced a decrease in station operating cash flow during the fourth quarter largely as a result of the severe impact of California's recessionary economy on most Northern California television stations, including our largest station-- KNTV," said W. Don Cornwell, chairman and chief executive officer. "WPTA also experienced a slight decline in net revenue during the quarter despite better than expected political advertising expenditures. On the other hand, WEEK and KBJR had substantial gains during the quarter in net revenue."
 "The burst of optimism by consumers following the election manifested by sharply higher retail sales generated strong television advertising and Granite stations ended the year with a very strong final month. This increased spending by advertisers, especially at KNTV, is continuing at a strong pace both locally and nationally in the first quarter of 1993. The strong November ratings performance of all Granite stations and the strength of ABC's ratings in the case of KNTV and WPTA have had a positive impact on advertising demand and pricing at all four stations."
 "We are pleased to announced that as a result of reducing our bank debt by over $44 million during 1992 the company's bank group has agreed to amend certain provisions of Granite's Senior Bank Loan Agreement to allow management greater flexibility to focus on strategic acquisitions and station operations," said W. Don Cornwell. "This revision to our Senior Bank Loan Agreement will relax certain financial and operating covenants affecting the company and will reduce the company's required repayment of bank debt for 1993 and most of 1994 by almost 50 percent."
 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, 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 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.
 GRANITE BROADCASTING CORPORATION
 FINANCIAL RESULTS
 (in thousands except per share data and number of shares)
 Percent
 Year ended Dec. 31, 1991 1992 Change
 Net revenue $ 33,426 $ 35,957 7.6
 Station operating expense 19,953 21,638 8.4
 Depreciation 2,446 2,279 (6.8)
 Amortization 4,388 3,675 (16.3)
 Station operating income 6,639 8,365 26.0
 Corporate expense 658 1,192 81.2
 Operating income 5,981 7,173 19.9
 Interest expense 13,709 11,675 (14.8)
 Other 730 487 (33.2)
 Loss before extraordinary
 item $ (8,458) $ (4,989) (41.0)
 Extraordinary loss on
 extinguishment of debt 0 (5,709)
 Net loss $ (8,458) $(10,698) 26.5
 Net loss attributable to
 common shareholders $ (8,498) $(10,791) (27.0)
 Per common share
 Net loss before
 extraordinary item $ (20.64) $ (1.26)
 Extraordinary loss on
 extinguishment of debt 0 (1.41)
 Net loss $ (20.64) $ (2.67)
 Weighted average common shares
 outstanding (a) 411,742 4,040,918
 Station operating
 cash flow (b) $ 13,473 $ 14,319 6.3
 Operating cash flow (b) $ 12,815 $ 13,127 2.4
 Operating cash flow margin 38.3 pct. 36.5 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 shares issuable upon conversion of outstanding issues of convertible preferred stock, the company's total number of shares (fully diluted) outstanding as of Dec. 31, 1992 is 7,315,794.
 (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.
 GRANITE BROADCASTING CORPORATION
 FINANCIAL RESULTS
 (in thousands except per share data and number of shares)
 Three Months ended Dec. 31, 1991 1992 Percent
 Change
 Net revenue $ 9,413 $ 9,507 1.0
 Station operating expense 5,149 5,597 8.7
 Depreciation 575 600 4.3
 Amortization 972 936 (3.7)
 Station operating income 2,717 2,374 (12.6)
 Corporate expense 37 351 848.6
 Operating income 2,680 2,023 (24.5)
 Interest expense 3,489 2,900 (16.9)
 Other 336 53 (84.3)
 Net loss $ (1,145) $ (930) (18.8)
 Net loss attributable to
 common shareholders $ (1,155) $ (993) (14.0)
 Net loss per common share $ (1.54) $ (0.23) (85.1)
 Weighted average common shares
 outstanding (a) 752,130 4,314,153
 Station operating cash flow (b) 4,264 3,910 (8.3)
 Operating cash flow (b) $ 4,227 $ 3,559 (15.8)
 Operating cash flow margin 44.9 pct. 37.4 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 shares issuable upon conversion of outstanding issues of convertible preferred stock, the company's total number of shares (fully diluted) outstanding as of Dec. 31, 1992 is 7,315,794.
 (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- 3/1/93
 /CONTACT: Don Cornwell, chief executive officer of Granite Broadcasting Corporation, 212-826-2530/
 (GBTVK)


CO: Granite Broadcasting Corporation ST: New York IN: ENT SU: ERN

LR -- NY087 -- 1534 03/01/93 15:01 EST
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