May 12, 2009 ā Hoffman Estates, IL
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Barrington Broadcasting Group LLC (“Barrington”) announced today its financial results for the three months ended March 31, 2009. Highlights are as follows:
- Gross revenues for the quarter ended March 31, 2009 decreased 16.9% to $26.0 million from $31.3 million for the quarter ended March 31, 2008. The decrease was primarily due to decreases in local revenues which decreased $2.8 million, or 14.4%, to $16.5 million, national revenues which decreased $2.5 million, or 30.0%, to $5.8 million, and political revenues which decreased $1.5 million to $0.2 million Other revenues increased $1.5 million, or 71%, to $3.6 million for the quarter.
- Net revenues (gross revenues less agency commissions and other direct costs) for the quarter ended March 31, 2009 decreased 16.0% to $22.4 million from $26.7 million for the quarter ended March 31, 2008.
- Operating expenses for the quarter ended March 31, 2008, not including depreciation and amortization, decreased 6.4%, or $1.4 million, to $20.0 million from $21.4 million for the quarter ended March 31, 2008 primarily as a result of workforce reductions that occurred in 2008. The reductions were partially offset by increased severance costs of $0.4 million during the quarter due to further workforce reductions.
- Broadcast Cash Flow (as defined herein) for the quarter ended March 31, 2009 decreased 38.0% to $4.4 million from $7.0 million for the quarter ended March 31, 2008.
The dial-in information for the earnings call is as follows: 1-877-941-0844. A telephonic replay of the earnings call will be available beginning on May 13, 2009 at 1:00 PM (ET) and remain available for 30 days. To access the replay please dial 800-406-7325 (domestic callers) or 303-590-3030 (international callers). The access code is 4068578#.
Results for the three months 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 (the “Acquired Stations”).
“In the first quarter, Barrington continued to reduce its operating expenses through increased operating efficiencies. In addition, we saw an increase in interactive revenues and revenues from retransmission consent agreements, and we began to see positive results of our increased sales presence in our markets. However, these positive trends were offset by continued weakness in local and national advertising”, said K. James Yager, Chief Executive Officer of Barrington Broadcasting.
Capital Contribution, Amendment to Credit Agreement and Purchases of Senior Subordinated Notes
On February 20, 2009, Pilot Group LP, Barringtonās owner, made an equity contribution of $16.0 million to Barrington.
On February 5, 2009, Barrington entered into an Amendment to its Credit Agreement. Among other things, the Amendment, which became effective on February 23, 2009, allows Barrington to use up to $13.0 million of cash for one year after the effective date to purchase and retire a portion of its 10-1/2% Senior Subordinated Notes due 2014 (the “Notes”). During the quarter, Barrington repurchased $67.8 million aggregate principal amount of the Notes for an aggregate purchase price of $11.6 million. In connection with the Note repurchases, Barrington realized income of $54.1 million. Barrington may seek to retire or purchase additional Notes through cash purchases and/or exchanges for qualified equity securities, in open market purchases, privately negotiated transactions or otherwise. Such repurchases or exchanges, if any, will depend on prevailing market conditions, Barringtonās liquidity requirements, contractual restrictions and other factors.
Conference Call
As previously announced, Barrington will host a conference call to discuss its first quarter results at 11:00 AM (ET) on Wednesday, May 13, 2009. The dial-in information for the earnings call is as follows: 1-877-941-0844. A telephonic replay of the earnings call will be available beginning on May 13, 2009 at 1:00 PM (ET) and remain available for 30 days. To access the replay, call 1-800-406-7325 (domestic callers) or 1-303-590-3030 (international callers) and enter access code 4068578#.
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 Barringtonās quarterly report for the quarter ended March 31, 2009 which will be posted on Barringtonās website (www.barringtontv.com) on May 13, 2009. Barringtonās results for the quarter ended March 31, 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 Barringtonās 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 Barringtonās 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 Barringtonās 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. Barringtonās results for the quarter ended March 31, 2009 are subject to the completion of its quarterly report for such period.
For further information contact:
Warren Spector
Chief Financial Officer
Barrington Broadcasting Group LLC
Barrington Broadcasting Capital Corporation
Phone: 847 884 1877
Fax: 847 755 3045
Email: wspector@barringtontv.com
Web: www.barringtontv.com
