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GRANITE BROADCASTING CORPORATION ANNOUNCES FINANCIAL RESULTS FOR THE NINE MONTHS AND THIRD QUARTER ENDED SEPT. 30, 1993

 NEW YORK, Oct. 29 /PRNewswire/ -- Granite Broadcasting Corporation (NASDAQ: GBTVK) today announced its financial results for the first nine months and third quarter of 1993.
 For the first nine months of 1993, Granite's net revenue was $27,141,000 compared with $26,449,000 in 1992, a 2.6 percent increase. Station operating cash flow (operating income before corporate, depreciation and amortization expense) for the nine months ended Sept. 30, 1993, was $10,322,000 compared with $10,410,000 in 1992, a .8 percent decrease. Operating cash flow (operating income before depreciation and amortization) for the first nine months was $9,414,000 compared with $9,569,000 in 1992, a decrease of 1.6 percent. Granite's operating cash flow margin was 34.7 percent during the first nine months of 1993 compared with 36.2 percent during the same period of 1992.
 For the third quarter of 1993, Granite's net revenue was $8,679,000 compared with $8,602,000 in 1992, an increase of just under 1 percent. Station operating cash flow (operating income before corporate, depreciation and amortization expense) for the three months ended Sept. 30, 1993, was $3,006,000 compared with $3,212,000 in 1992, a 6.4 percent decrease. Operating cash flow (operating income before depreciation and amortization) for the third quarter was $2,700,000 compared with $2,909,000 in 1992, a 7.2 percent decrease. Granite's operating cash flow margin was 31.1 percent during the third quarter of 1993 compared with 33.8 percent during the same period of 1992.
 Station operating expense for the first nine months increased by less than 5 percent including an increase of approximately 19 percent in programming costs. Programming expense grew at Granite stations during the first half of the year by 25 percent and increased by 9 percent during the third quarter. For the fourth quarter, programming expense is budgeted to increase by less than 4 percent. For the third quarter, Granite's net loss decreased by 80 percent as a result of the absence of an extraordinary loss on the early extinguishment of debt. For the nine months, Granite's net loss decreased by almost 66 percent primarily as a result of the absence of an extraordinary loss on the early extinguishment of debt as well as lower interest and other non-operating expense and higher net revenue.
 "Despite a very strong and better than expected quarter for the Granite station serving San Jose-Salinas-Monterey, Calif., the advertising climate during July and August in the markets served by our Midwestern based stations was poor," said W. Don Cornwell, chairman and chief executive officer. "The combination of flooding and poor weather throughout the Midwest, the loss of political advertising as well as revenue associated with the Summer Olympics at Granite's two NBC affiliated stations, and the shift of some national spot advertising to the networks by certain national packaged goods advertisers led to an overall decline in revenue at Granite's Midwestern-based stations. The Granite station serving Peoria-Bloomington, Ill. had a slight growth in net revenue while the Granite stations serving Duluth, Minn.-Superior, Wis. and Fort Wayne, Ind. experienced significant revenue declines.
 "On the other hand, the Granite station serving San Jose-Salinas- Monterey, Calif. achieved a significant gain in net revenue during the quarter despite continuing weakness in California's economy. Both local and national advertising contributed to this increase. Beginning with September, the year-to-year pace of spending by both local and national advertisers picked up substantially at all Granite stations with the exception of the station serving Fort Wayne, Ind. That station received a substantial amount of political advertising revenue during September and October of 1992 which will not be completely replaced during 1993.
 "During the third quarter of 1993, local non-political advertising increased by 8 percent, while national non-political spending declined by just under 1 percent. National spending was down at Granite stations largely as a result of the shift of some national spot advertising to the networks by certain packaged goods advertisers. Political advertising decreased by 96 percent due to the virtual absence of elections in Granite markets. Automotive advertising increased at Granite stations during the quarter by approximately 6 percent. However, excluding the Granite station serving San Jose-Salinas- Monterey, Calif. which experienced a 7 percent decline, automotive advertising at Granite's other stations increased by more than 28 percent. Granite stations also realized significant spending increases from fast food, entertainment and paid programming advertisers."
 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. The company signed definitive agreements in June 1993 for, and is currently in the process of, acquiring WTVH-TV, the CBS affiliate serving Syracuse, N.Y., and KSEE-TV, the NBC affiliate serving Fresno-Visalia, Calif. In October, Granite entered into a definitive agreement to make a strategic investment by acquiring certain outstanding securities of the ultimate parent of WKBW-TV, the ABC affiliate serving Buffalo, N.Y. The company was ranked number 29 on Black Enterprise Magazine's 1992 Black Enterprise Industrial/Service 100 List.
 GRANITE BROADCASTING CORPORATION
 Financial Results


(Unaudited, in thousands except per share data and number of shares)
 Three Months Ended
 Sept. 30 Percent
 1993 1992 Change
 Net Revenue $ 8,679 $ 8,602 0.9
 Station Operating Expense 5,673 5,390 5.3
 Depreciation 612 573 6.8
 Amortization 977 1,012 (3.5)
 Station Operating Income 1,417 1,627 (12.9)
 Corporate Expense 305 302 1.1
 Operating Income 1,112 1,325 (16.1)
 Interest Expense 2,469 2,563 (3.7)
 Other 104 194 (46.4)
 Loss before income tax benefit
 and extraordinary item $(1,461) $(1,432) 2.0
 Income tax benefit (c) 118 118
 Loss before extraordinary item $(1,343) $(1,314) 2.2
 Extraordinary loss on
 extinguishment of debt 0 (5,358)
 Net Loss $(1,343) $(6,672) (79.9)
 Net Loss Attributable to
 Common Shareholders $(1,367) $(6,682) (79.5)
 Per common share
 Loss before extraordinary item ($0.31) ($0.31) 0.0
 Extraordinary loss on
 extinguishment of debt 0.00 (1.28)
 Net Loss per Common Share ($0.31) ($1.59) (80.4)
 Weighted Average Common Shares 4,341,994 4,202,130
 Outstanding (a)
 Station Operating Cash Flow (b) $ 3,006 $ 3,212 (6.4)
 Operating Cash Flow (b) $ 2,700 $ 2,909 (7.2)
 Operating Cash Flow Margin 31.1 pct. 33.8 pct.
 (a) Giving effect to the shares issuable upon conversion of the outstanding convertible preferred stock, the company's total number of shares (fully diluted) outstanding as of Sept. 30, 1993, is 7,395,235.
 (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.
 (c) In adopting FASB No. 109, Accounting for Income Taxes, the company elected to restate prior year financial statements from the date of the company's first acquisition. The application of FASB No. 109 increased amortization expense by $77,000 and resulted in an income tax benefit of $118 thousand in the third quarter of each year.
 GRANITE BROADCASTING CORPORATION
 Financial Results


(Unaudited, in thousands except per share data and number of shares)
 Nine Months
 Ended Sept. 30 Percent
 1993 1992 Change
 Net Revenue $27,141 $26,449 2.6
 Station Operating Expense 16,819 16,040 4.9
 Depreciation 1,814 1,679 8.0
 Amortization 2,958 2,970 (0.4)
 Station Operating Income 5,550 5,760 (3.6)
 Corporate Expense 908 841 8.0
 Operating Income 4,642 4,919 (5.6)
 Interest Expense (d) 8,069 8,775 (8.1)
 Other 244 434 (43.9)
 Loss before income tax benefit
 and extraordinary item $(3,671) $(4,290) (14.4)
 Income tax benefit (c) 354 354
 Loss before extraordinary item $(3,317) $(3,936) (15.7)
 Extraordinary loss on
 extinguishment of debt 0 (5,709)
 Net Loss $(3,317) $(9,646) (65.6)
 Net Loss Attributable to
 Common Shareholders $(3,386) $(9,676) (65.0)
 Per common share
 Loss before extraordinary item ($0.78) ($1.00) (22.0)
 Extraordinary loss on
 extinguishment of debt 0.00 (1.45)
 Net Loss per Common Share ($0.78) ($2.44) (68.0)
 Weighted Average Common Shares
 Outstanding (a) 4,343,770 3,950,082
 Station Operating Cash Flow (b) $10,322 $10,410 (0.8)
 Operating Cash Flow (b) $ 9,414 $ 9,569 (1.6)
 Operating Cash Flow Margin 34.7 pct. 36.2 pct.
 (a) Giving effect to the shares issuable upon conversion of the outstanding convertible preferred stock, the company's total number of shares (fully diluted) outstanding as of Sept. 30, 1993, is 7,398,055.
 (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.
 (c) In adopting FASB No. 109, Accounting for Income Taxes, the company elected to restate prior year financial statements from the date of the company's first acquisition. The application of FASB No. 109 increased amortization expense by $154,000 and resulted in an income tax benefit of $354,000 in the first nine months of each year.
 (d) Includes during 1993, the amortization of $931,000 of interest which was prepaid during 1992 in connection with the early termination of certain interest rate protection agreements.
 -0- 10/29/93
 /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

WB -- NY068 -- 8613 10/29/93 15:07 EDT
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