Printer Friendly

GREAT AMERICAN COMMUNICATIONS COMPANY REPORTS THIRD QUARTER EARNINGS

GREAT AMERICAN COMMUNICATIONS COMPANY REPORTS THIRD QUARTER EARNINGS
 CINCINNATI, Nov. 4 /PRNewswire/ -- Great American Communications Company (NASDAQ: GACC) today reported a loss from continuing operations of $30.1 million or $.55 per share for the quarter ended Sept. 30, 1991 compared to a loss from continuing operations of $35.4 million or $1.01 per share for the quarter ended Sept. 30, 1990.
 The decrease in the loss is attributable to the reduction in interest expense resulting from refinancing activities. The loss per share this year is less because of the decreased interest expense and the issuance of new shares of common stock in 1991.
 For the nine months ended Sept. 30, 1991, the loss from continuing operations was $99 million or $2.33 per share versus $57 million or $1.62 per share for the first nine months of 1990. The loss from continuing operations in 1990 included a gain of approximately $45 million on the sale of the company's investment in Chiquita Brands International. Net losses after including the results of discontinued operations and extraordinary items for the quarter and nine months ended Sept. 30, 1991 were $23.5 million and $6.9 million respectively, compared to net earnings of $7.9 million for the third quarter of 1990 and a net loss of $6.1 million in the first nine months of 1990.
 GACC's net revenues declined 8 percent during the third quarter of 1991 compared to the same period last year. Despite the solid performance of the radio division, broadcast group revenues declined 4 percent from $51.5 million to $49.5 million as a result of lagging advertising demand in the television industry. The company does not expect television advertising demand to improve during the fourth quarter.
 GACC has been a primry investor in Black Entertainment Television (BET) since 1982. In connection with a recent initial public offering, GACC sold its shares of BET and will receive approximately $36 million in net proceeds.
 As previously announced, GACC has entered into an agreement to sell its remaining entertainment operations. The results of the entertainment group are being treated as discontinued operations because of the pending sale. This sale (which is expected to occur in December 1991), together with the sale of the company's interest in BET, will be reported in the fourth quarter.
 The proceeds from these sales will be used primarily to reduce the company's bank debt. Given the company's debt levels, further financial restructurings and/or debt exchanges or swaps are likely.
 In a separate release today, GACC announced the acquisition of WGHP-TV in High Point, N.C. GACC and its subsidiaries currently own and operate five television stations and 12 FM and six AM radio stations in the nation's top 50 markets. GACC's common stock trades in the over the counter market under the symbol GACC.
 GREAT AMERICAN COMMUNICATIONS COMPANY
 CONSOLIDATED STATEMENT OF OPERATIONS
 (In thousands, except per share amounts)
 Three Months Ended
 September 30,
 1991 1990
 Net revenues (A):
 Broadcast Group $ 49,496 $ 51,527
 Other 4,374 7,091
 TOTAL 53,870 58,618
 Costs and expenses (A):
 Operating expenses 22,127 22,318
 Selling, general and administrative 17,354 16,510
 TOTAL 39,481 38,828
 Operating income before depreciation
 and amortization 14,389 19,790
 Depreciation and amortization 10,936 11,310
 Operating income 3,453 8,480
 Other income (expense):
 Interest expense (25,878) (35,578)
 Minority interest (7,169) (7,123)
 Equity in net earnings of
 affiliates (A) 0 0
 Investment income 227 94
 Miscellaneous, net (A) (B) (768) (1,312)
 TOTAL (33,588) (43,919)
 Loss from continuing operations before
 income taxes (30,135) (35,439)
 Income taxes 0 0
 Loss from continuing operations (30,135) (35,439)
 Discontinued operations (A) 4,774 2,523
 Loss before extraordinary items (25,361) (32,916)
 Extraordinary items (C) 1,911 40,844
 NET EARNINGS (LOSS) ($23,450) $7,928
 PER SHARE DATA (Primary and Fully
 Diluted):
 Loss from continuing operations ($.55) ($1.01)
 Loss before extraordinary items ($.46) ($.94)
 Net earnings (loss) ($.43) $.23
 Average common shares 54,675 35,163
 Nine Months Ended
 September 30,
 1991 1990
 Net revenues (A):
 Broadcast Group $144,758 $149,982
 Other 13,071 15,560
 TOTAL 157,829 165,542
 Costs and expenses (A):
 Operating expenses 61,431 60,687
 Selling, general and administrative 51,776 49,798
 TOTAL 113,207 110,485
 Operating income before depreciation
 and amortization 44,622 55,057
 Depreciation and amortization 32,773 33,393
 Operating income 11,849 21,664
 Other income (expense):
 Interest expense (86,723) (109,984)
 Minority interest (21,572) (22,778)
 Equity in net earnings of
 affiliates (A) 0 11,680
 Investment income 1,173 513
 Miscellaneous, net (A) (B) (3,965) 42,026
 TOTAL (111,087) (78,543)
 Loss from continuing operations before
 income taxes (99,238) (56,879)
 Income taxes 0 135
 Loss from continuing operations (99,238) (57,014)
 Discontinued operations (A) (13,095) 7,054
 Loss before extraordinary items (112,333) (49,960)
 Extraordinary items (C) 105,421 43,844
 NET EARNINGS (LOSS) ($6,912) ($6,116)
 PER SHARE DATA (Primary and Fully
 Diluted):
 Loss from continuing operations ($2.23) ($1.62)
 Loss before extraordinary items ($2.52) ($1.42)
 Net earnings (loss) ($.15) ($.17)
 Average common shares 44,595 35,162
 Notes:
 (A) -- Restated to reflect the results of the Entertainment Group as discontinued operations. GACC entered into definitive agreements for the sale of its entertainment business in October 1991. Discontinued operations represents the results of the Entertainment Group, including equity in the net earnings of Spelling Entertainment, Inc. in 1990 and a $17.2 million loss on the sale of GACC's investment in Spelling during the nine month period ended Sept. 30, 1991.
 (B) -- Includes a gain of approximately $45 million on the sale of GACC's remaining investment in Chiquita Brands International during the nine month period ended Sept. 30, 1990.
 (C) -- Represents net gains from the refinancing of long-term debt.
 -0- 11/4/91
 /CONTACT: Sandra Heimann of Great American Communications Company, 513-579-2177/
 (GACC) CO: Great American Communications Company ST: Ohio IN: ENT SU: ERN LC -- CL021 -- 0900 11/04/91 16:36 EST
COPYRIGHT 1991 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 4, 1991
Words:1030
Previous Article:AMERICAN SAVINGS BRINGS SUIT AGAINST FORMER OFFICERS, DIRECTORS AND OTHERS
Next Article:GENERAL MOTORS DECLARES DIVIDEND
Topics:


Related Articles
AMERICAN REAL ESTATE PARTNERS REPORTS THIRD QUARTER & NINE MONTH RESULTS
GREAT AMERICAN COMMUNICATIONS COMPANY REPORTS YEAR-END RESULTS
AMERICAN ELECTRIC POWER THIRD QUARTER EARNINGS DECREASE
AMERICAN EDUCATIONAL PRODUCTS, INC. REPORTS THIRD QUARTER EARNINGS
SUBSTANTIAL PROFIT REPORTED BY TIE/COMMUNICATIONS, INC.
AMERICAN WATER WORKS REPORTS EARNINGS FOR THE THIRD QUARTER
GREAT AMERICAN COMMUNICATIONS COMPANY ANNOUNCES FIRST QUARTER RESULTS
PR Newswire Southwest Summary, Thursday, Nov. 04, to 18:00 EDT.
PR Newswire Southwest Summary, Tuesday, July 24, to 6:00 p.m. EDT.
Superior Essex Inc. Reports Third Quarter 2006 Results.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters