Barrington-Earnings Release Q3 2009
FOR IMMEDIATE RELEASE CONTACT: Warren Spector
Tel 847 884 1877
Fax 847 755 3045
Email wspector@barringtontv.com
BARRINGTON REPORTS THIRD QUARTER OPERATING RESULTS
Hoffman Estates, IL, November 9, 2009 – Barrington Broadcasting Group LLC (“Barrington”) announced today its financial results for the three months and nine months ended September 30, 2009. Highlights are as follows:
- Gross revenues for the quarter ended September 30, 2009 decreased 21.6% to $28.2 million from $35.9 million for the quarter ended September 30, 2008. The decrease was primarily due to a decrease in political revenues of $3.5 million, or 86.0%, to $0.6 million and a decrease in local revenues of $3.3 million, or 16.0%, to $17.1 million. National revenues decreased $2.8 million, or 31.4%, to $6.0 million. Other revenues increased $1.7 million, or 63.3%, to $4.4 million for the quarter ended September 30, 2009.
- Net revenues (gross revenues less agency commissions and other direct costs) for the quarter ended September 30, 2009 decreased 21.0%, or $6.4 million, to $24.2 million from $30.6 million for the quarter ended September 30, 2008.
- Operating expenses for the quarter ended September 30, 2009, not including depreciation and amortization, decreased 10.5%, or $2.2 million, to $18.4 million from $20.6 million for the quarter ended September 30, 2008. The decrease was primarily due to workforce reductions, expenses at Barrington’s Peoria station WHOI-TV relating to a joint sales and shared services agreement with Granite Broadcasting, and renegotiation of certain contractual obligations.
- Broadcast Cash Flow (as defined herein) for the quarter ended September 30, 2009 decreased 31.9% to $7.7 million from $11.4 million for the quarter ended September 30, 2008.
- Gross revenues for the nine months ended September 30, 2009 decreased 18.3% to $83.0 million from $101.7 million for the nine months ended September 30, 2008. The decrease was primarily due to a decrease in local revenues of $9.3 million, or 15.3%, to $51.7 million and a decrease in national revenues of $8.5 million, or 32.3%, to $17.9 million. Political revenues decreased $5.5 million, or 86.6%, to $0.9 million. Other revenues increased $4.7 million, or 60.9%, to $12.5 million.
- Net revenues (gross revenues less agency commissions and other direct costs) for the nine months ended September 30, 2009 decreased 18.0%, or $15.6 million, to $71.2 million from $86.8 million for the nine months ended September 30, 2008.
- Operating expenses for the nine months ended September 30, 2009, not including depreciation and amortization and an impairment of intangible assets and goodwill, decreased 10.1%, or $6.4 million, to $57.3 million from $63.7 million for the nine months ended September 30, 2008. The decrease was primarily due to workforce reductions, expenses at Barrington’s Peoria station WHOI-TV relating to a joint sales and shared services agreement with Granite Broadcasting, and renegotiation of certain contractual obligations.
- Broadcast Cash Flow for the nine months ended September 30, 2009 decreased 29.5% to $19.8 million from $28.1 million for the nine months ended September 30, 2008.
Results for the three and nine months ended September 30, 2008 and September 30, 2009 include results of WGTU and WGTQ, stations that Barrington programs and to which it provides support services, since April 1, 2008, the date Tucker Broadcasting of Traverse City, Inc. completed the acquisition of these stations. Results also include results from joint sales and shared service agreements with Granite Broadcasting Corporation related to Granite’s and Barrington’s respective station operations in the Peoria, Illinois and Syracuse, New York markets, effective March 2, 2009.
“Third quarter comparisons were difficult given the political activity that occurred in the same period in 2008. While we continue to see continued positive results from both revenue and cost-saving initiatives we put in place earlier in the year, weakness in the economy continued to negatively impact us during the quarter. However, we completed our bond buyback program during the quarter which will positively impact us in the future by reducing interest expense,” said K. James Yager, Chief Executive Officer of Barrington Broadcasting.
Conference Call
As previously announced, Barrington will host a conference call to discuss its second quarter results at 11:00 AM (ET) on Tuesday, November 10, 2009. The dial-in information for the earnings call is as follows: 1-877-941-1467. A telephonic replay of the earnings call will be available beginning on November 10, 2009 at 1:00 PM (ET) and remain available for 30 days. To access the replay, call 1-800-406-7325 (domestic callers) or 303-590-3030 (international callers) and enter access code 4179753#.
During the conference call, representatives of Barrington may discuss and answer one or more questions concerning Barrington’s business and financial matters. The responses to these questions, as well as other matters discussed during the call, may contain information that has not been previously disclosed.
Quarterly Report
The information in this press release should be read in conjunction with the financial statements and footnotes contained in Barrington’s quarterly report for the quarter ended September 30, 2009 which will be posted on Barrington’s website (www.barringtontv.com) on November 12, 2009. Barrington’s results for the quarter ended September 30, 2009 are subject to the completion of its quarterly report for such period.
Non-GAAP Financial Measures
Broadcast Cash Flow, EBITDA and Adjusted EBITDA (each as defined in the attachments to this press release) are non-GAAP financial measures (i.e., they are not measures of financial performance under generally accepted accounting principles) and should not be considered in isolation from or as a substitute for consolidated statements of operations and cash flow data prepared in accordance with GAAP. Broadcast Cash Flow, EBITDA and Adjusted EBITDA, as used herein, are not necessarily comparable to similarly titled measures of other companies. For
definitions of and additional information regarding Broadcast Cash Flow, EBITDA and Adjusted
EBITDA and a reconciliation of such measures to the most comparable measures calculated in accordance with GAAP, please see the attachments to this press release.
Broadcast Cash Flow, EBITDA and Adjusted EBITDA are measures commonly used by financial analysts in evaluating performance of companies, including broadcast companies. Accordingly, Barrington believes that Broadcast Cash Flow, EBITDA and Adjusted EBITDA may be useful in assessing Barrington’s operating performance and its ability to meet its debt service requirements. Barrington also believes that these measures allow a standardized comparison between companies in the broadcast industry, while minimizing the differences from depreciation policies, financial leverage and tax strategies.
About Barrington
Barrington was formed in 2003 to acquire and operate television stations in smaller markets across the United States. Barrington currently owns, operates, or supports the operations of twenty four network affiliated television stations. Barrington is owned and controlled by Pilot Group, with management as its partner. Pilot Group is a non-traditional private investment firm founded in 2003 by a group of operating executives who actively help its management partners achieve their goals.
Forward Looking Statements
The statements in this press release that are not historical facts are forward-looking statements that are subject to material risks and uncertainties. Investors are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties, and that actual results or developments may differ materially from those in the forward-looking statements as a result of various factors. Such factors include those risks described from time to time in Barrington’s quarterly reports and annual reports which are furnished pursuant to the Indenture dated as of August 11, 2006, by and among Barrington, Barrington Broadcasting Capital Corporation, the guarantors named therein and U.S. Bank National Association, as trustee, as amended, and which are posted on Barrington’s website. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. Barrington does not undertake to update any forward-looking statements in this press release or with respect to matters described herein.
For further information, contact:
Warren Spector
Chief Financial Officer
Barrington Broadcasting Group LLC
Barrington Broadcasting Capital Corporation
Tel 847 884 1877
Fax 847 755 3045
Email wspector@barringtontv.com
