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 CRANSTON, R.I., Nov. 1 /PRNewswire/ -- Outlet Communications, Inc. (NASDAQ: OCOMA) today announced 1993 third quarter operating results. Third quarter revenue of $10,674,000 showed a decline of $841,000 or 7.3 percent compared to $11,515,000 a year ago. The prior year's quarter, however, included more than $2,000,000 in revenue derived from the Olympics and political campaigns. These events did not repeat as a revenue source in 1993.
 Although the reduced revenue caused operating income to be $2,222,000, a decrease of $738,000 from last year's $2,960,000, the decrease was offset by a savings of $763,000 in third quarter interest expense. A refinancing of the company's long-term debt, completed in the 1993 third quarter, contributed to the lower interest charges.
 The refinancing also resulted in one-time debt extinguishment costs, reported as an extraordinary item, in the amount of $2,269,000. These costs occasioned the first quarterly net loss that the company has experienced, after four consecutive quarterly profits, since the second quarter of 1992.
 Because of a settlement of certain industry-wide litigation involving contested music listening fees, the company reversed an accrual which provided for its potential exposure in this matter. The reversed accrual, in the amount of $1,300,000, was credited to other income in the 1993 third quarter.
 Before extraordinary items, the 1993 third quarter net income was $395,000 or 6 cents per share. After extraordinary items the net loss was $1,874,000 or 29 cents per share. In the 1992 third quarter, a nonrecurring pre-tax gain of $1,416,000 on the sale of real estate contributed to that quarter's net income of $671,000 or 10 cents per share.
 For the nine months ended Sept. 1993, net revenue of $33,531,000 increased by $1,002,000 or 3.1 percent compared to $32,529,000 a year ago. Operating income of $8,144,000 improved by $1,336,000 or 19.6 percent vs. last year's $6,808,000. Interest expense decreased by $1,471,000 or 13.7 percent from the prior year period as a result of the refinancing and other debt reductions.
 Before extraordinary items, the year-to-date net loss was $210,000 or 3 cents per share. This was reduced from last year's net loss (including the nonrecurring gain of $1,416,000) of $1,719,000 or 26 cents per share, for an improvement of 87.8 percent. After extraordinary items, which also includes a net benefit from a change in accounting for income taxes, Outlet had net income of $1,955,000 or 30 cents per share for the nine months ended Sept. 1993.
 James G. Babb, Outlet's chairman, president and CEO said, "Our revenue pacing has returned to the strong second quarter levels and we will enjoy the full benefit of our refinancing efforts, with lower interest expense.
 "We should return to profitability in the fourth quarter and, short of a major setback in the economy, will have our first profitable year since going public in 1987."
 Outlet Communications, Inc. headquartered in Cranston, R.I. owns and operates two VHF television stations that are both NBC network affiliates: WCMH, Columbus, Ohio, and WJAR-TV, serving the Providence, R.I.-New Bedford, Mass., market.
 Comparative Consolidated Summary of Earnings
 Third Quarter Year to Date
 Ended September Ended September
 1993 1992 1993 1992
 Broadcast revs. $10,674,000 $11,515,000 $33,351,000 $32,529,000
 Operating inc. $2,222,000 $2,960,000 $8,144,000 $6,808,000
 Interest expense (2,731,000) (3,494,000) (9,236,000) (10,707,000)
 Nonrecurring gain,
 interest and other
 inc. -- net 1,309,000 1,893,000 1,375,000 2,305,000
 Income Taxes 405,000 688,000 493,000 125,000
 Inc. (loss) before
 extraord. items 395,000 671,000 (210,000) (1,719,000)
 Extraordinary items
 -- net (2,269,000) 0 2,165,000 0
 Net Income (Loss)$(1,874,000) $671,000 $1,955,000 $(1,719,000)
 Income (loss)
 per share:
 Before extraord.
 items 6 cents 10 cents (3 cents) (26 cents)
 Extraord. items (35 cents) --- 33 cents ---
 Net inc. (loss)
 per share (29 cents) 10 cents 30 cents (26 cents)
 Weighted average no.
 of shares of com.
 stock 6,554,283 6,552,500 6,553,094 6,552,500
 NOTE: Certain prior year amounts have been reclassified to conform to 1993 presentation.
 -0- 11/1/93
 /CONTACT: James G. Babb, chairman, president and CEO, of Outlet Communications, 401-455-9250/

CO: Outlet Communications, Inc. ST: Rhode Island IN: TLS SU: ERN

JL-DJ -- NE017 -- 9341 11/01/93 17:02 EST
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Publication:PR Newswire
Date:Nov 1, 1993

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