PINELANDS RELEASES FIRST QUARTER 1992 EARNINGS
PINELANDS RELEASES FIRST QUARTER 1992 EARNINGS SECAUCUS, N.J., May 4 /PRNewswire/ -- Pinelands, Inc. (NYSE: PL),
the parent company of WWOR-TV, today announced first quarter 1992 revenues of $28.6 million, a decrease of $5.7 million or 16.6 percent from first quarter 1991. Non-broadcast revenues were lower year-to-year as a result of the absence in 1992 of the high level of copyright royalty income (CRI) recorded in first quarter 1991. In addition, broadcast revenues in the first quarter continued to be affected by a weak advertising market for non-Olympics spending.
Pre-tax loss in the first quarter of 1992 was $6.8 million compared to $1.8 million in 1991. Net loss was $5.3 million in first quarter 1992 compared to $2.1 million in 1991. Loss per share was $.31 in first quarter 1992 compared to first quarter 1991 loss per share of $.12. Michael B. Alexander, president and chief operating officer of Pinelands, said, "Our approach during this trying time for all advertising-dependent businesses has been to contain costs as much as possible while continuing to invest in the kind of original programming ventures which we believe will benefit the company and its stockholders. We, along with other broadcasters, have suffered through a declining economy and dramatic changes in the television business. None have been tougher than the last quarter. We
believe, however, that Pinelands is well-positioned to take advantage of the economy as it improves."
The primary factor in the reduction of revenues in 1992 versus 1991 was a decrease of $3.0 million in the amount of CRI recorded. In first quarter of 1991, the company received a larger than anticipated copyright royalty payment for in-house produced programs broadcast in 1988. At that time the excess payment for 1988 and adjustments for 1989 and 1990 were recorded. WWOR-TV's gross broadcast advertising sales for the three months ended March 31, 1992, declined 8.6 percent as compared to the first quarter of 1991. For the same period, the New York advertising market increased an estimated 4.2 percent on the strength of the Olympics. WWOR-TV's market share for the first quarter declined to an estimated 14.2 percent from 16.1 percent in the first quarter 1991. Contributing to the decline was $1.0 million of lower baseball revenues because of one less pre-season game in first quarter 1992 and the reallocation of certain sponsor dollars between pre and regular season games. Net barter revenues (fully offset by barter costs) declined $1.2 million year-to-year, reflecting the continued weak advertising market. First quarter 1992 operating expenses fell to $27.7 million from $29.2 million in 1991. The $1.5 million decrease was primarily the result of lower barter amortization and lower sales related costs. Selling, general and administrative costs were $.8 million higher in the first quarter of 1992 compared to the prior year quarter. The decision to increase advertising spending $.4 million in 1992 to better promote the Station's locally produced programs and program schedule changes, and timing differences of certain expenditures in 1991 account for the increase. The income tax benefit for first quarter 1992 was $1.5 million, primarily resulting from the carryback of the first quarter's loss to 1991. The provision for income taxes for the three months ended March 31, 1991 was $.3 million. The company's effective tax rate continues to be adversely affected by the non-deductibility of amortization of certain intangible assets. On March 30, Pinelands announced that it had entered into a definitive agreement to acquire KCAL-TV Los Angeles from The Walt Disney Company in exchange for the Disney Company receiving a 45 percent ownership stake in Pinelands. Consummation of the transaction is conditioned upon, among other things, the approval by the Federal Communications Commission of the transfer of KCAL's broadcast license to Pinelands and the approval of Pinelands' stockholders. Pinelands, Inc. is a holding company whose subsidiary's primary business is the ownership and operation of WWOR-TV. WWOR-TV, an independent VHF television station licensed to New Jersey, broadcasts across the tri-state area, the largest television market in the United States. WWOR-TV's signal is also transmitted by an independent third party via satellite to cable systems in 49 states. PINELANDS, INC. CONSOLIDATED STATEMENT OF OPERATIONS ($ In thousands, except per share data) (Unaudited) THREE MONTHS ENDED MARCH 31, 1992 1991 Revenues $ 28,635 $ 34,336 Expenses: Operating 27,701 29,170 Selling, General & Administrative 4,567 3,794 Depreciation 1,027 981 Amortization of Intangibles 2,190 2,190 Total Expenses 35,485 36,135 Loss Before Income Tax (Benefit) Provision (6,850) (1,799) Income Tax (Benefit) Provision (1,505) 321 Net Loss $ (5,345) $(2,120) Net Loss Per Common Share $ (.31) $ (.12) CASH FLOW(A) ($ In Thousands) (Unaudited) THREE MONTHS ENDED MARCH 31, 1992 1991 Loss Before Income Taxes $ (6,850) $(1,799) Add (Deduct): Depreciation 1,027 981 Amortization of Intangibles 2,190 2,190 (3,633) 1,372 Amortization of broadcast program rights 16,796 19,910 Payments for broadcast program rights (11,042) (13,571) Cash Flow $ 2,121 $ 7,711 (A) -- Cash Flow is defined as follows: Income (loss) before interest expense and income taxes plus depreciation and amortization (including intangible assets and broadcast program rights) less payments for broadcast program rights. -0- 5/4/92 /CONTACT: Joele Frank, 212-557-0100, or Barbara Landes (investor relations), 201-330-3788, both for Pinelands/ (PL) CO: Pinelands, Inc. ST: New Jersey IN: ENT SU: ERN
PS -- NY118 -- 6279 05/04/92 18:05 EDT
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|Date:||May 4, 1992|
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