Press Releases
Barrington reports third quarter operating results
Nov. 14, 2006 — Hoffman Estates, IL
Barrington Broadcasting Group LLC ("Barrington") announced today its financial results for the three months ended Sept. 30, 2006 and for the nine months ended Sept. 30, 2006.
Highlights of Barrington's proforma combined financial results for the third quarter include:
- proforma gross revenues for the quarter ended September 30, 2006 increased 11.3% to $33.1 million from $29.7 million for the quarter ended September 30, 2005. The increase was primarily due to an increase in political revenues for the quarter of $3.1 million. Political revenues for the quarter ended September 30, 2006 were approximately $3.3 million. Local revenues increased 2.2% to $17.8 million and national revenues increased 1.4% to $9.6 million for the quarter ended September 30, 2006
- proforma net revenues (gross revenues less agency commissions and other direct costs) for the quarter increased 9.8% to $28.1 million from $25.6 million for the quarter ended September 30, 2005.
- proforma operating expenses for the quarter, not including depreciation and amortization, increased $1.0 million, or 5.6%, to $19.8 million. The increase was primarily due to an increase in utilities, outside news expenses, sales salaries and commissions, and repairs and maintenance.
- proforma Broadcast Cash Flow (as defined herein) for the quarter increased 16.1% to $9.0 million from $7.8 million for the quarter ended September 30, 2005.
- proforma gross revenues for the nine months ended September 30, 2006 increased 9.9% to $99.1 million from $90.2 million for the quarter ended September 30, 2005. The increase was due to an increase in political revenues for the period of $5.1 million as well as an increase in local revenues of $4.1 million, or 7.9%, to $56.0 million. National revenues increased 2.9% for the nine month period to $30.3 million. Political revenues for the nine months ended September 30, 2006 were approximately $5.8 million.
- proforma net revenues for the nine months ended September 30, 2006 increased 9.3% to $84.6 million from $77.4 million for the quarter ended September 30, 2005.
- proforma operating expenses for the nine months ended September 30, 2006, not including depreciation and amortization, increased $3.1 million, or 5.6%. The increase was primarily due to increases in utilities, outside news expenses, sales salaries and commissions, and scheduled payroll increases.
- proforma Broadcast Cash Flow for the nine months ended September 30, 2006 increased 15.9% to $28.2 million from $24.3 million for the nine months ended September 30, 2005.
For more information regarding this pro forma financial information, including certain adjustments and assumptions, and a definition of Broadcast Cash Flow, see the full PDF of this press release.
Highlights of Barrington Corporation's actual combined financial results for the third quarter include:
- For the quarter ended September 30, 2006, gross revenues increased to $24.3 million from $8.1 million for the quarter ended September 30, 2005. Net revenues for the quarter increased to $20.6 million from $6.9 million for the quarter ended September 30, 2005. Operating expenses, not including depreciation and amortization, increased for the quarter to $14.7 million from $5.1 million for the quarter ended September 30, 2005. Broadcast Cash Flow increased for the quarter to $7.5 million from $2.1 million for the quarter ended September 30, 2005. The increases were primarily due to acquisitions completed in the latter part of 2005 and the first quarter of 2006, and the Raycom stations acquisition in August 2006.
- For the nine months ended September 30, 2006, gross revenues increased to $47.3 million from $20.4 million for the nine months ended September 30, 2005. Net revenues for the nine months ended September 30, 2006 increased to $39.9 million from $17.3 million for the nine months ended September 30, 2005. Operating expenses, not including depreciation and amortization, increased to $29.2 million for the nine months ended September 30, 2006 from $13.7 million for the nine months ended September 30, 2005. The increases were primarily due to acquisitions completed in the latter part of 2005 and the first quarter of 2006, and the Raycom stations acquisition in August 2006.
K. James Yager, Chief Executive Officer, commented that "our combined station results were as we expected for the nine month period. The political spending occurred later than we expected, but we expect our 4th quarter and year to finish strong as political revenues through the election cycle exceeded our expectations".
Conference Call
As previously announced, Barrington will host a conference call to discuss its third quarter results at 11:00 AM (EST) on Tuesday, November 14, 2006. The dial-in information for the earnings call is as follows: 1-800-218-8862. A telephonic replay of the earnings call will be available beginning on November 14, 2006 at 1:00 PM (EST) and remain available for 30 days. To access the replay, call 1-800-405-2236 (domestic callers) or 1-303-590-3000 (international callers) and enter access code 11075188#.
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 BarringtonŐs quarterly report for the quarter ended September 30, 2006 which will be posted on the company website (www.barringtontv.com) on November 14, 2006.
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 BarringtonŐs 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 and operates twenty network affiliated televisions stations and operates a twenty first station under a local marketing agreement. 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. These risks and uncertainties include, but are not limited to, uncertainties relating to our significant amount of debt, our ability to maintain our network affiliations, our ability to generate advertising revenues, cyclical or other trends in advertising spending, the regulatory environment for our industry, competition in our markets and our ability to integrate the acquisition of television stations from Raycom Media, Inc. and certain of its subsidiaries and achieve certain cost savings. Barrington does not undertake to update any forward-looking statements in this press release or with respect to matters described herein.
Download the full press release, including pro forma information.
For further information contact:
Warren Spector
Chief Financial Officer
Barrington Broadcasting Group LLC
Barrington Broadcasting Capital Corporation
847-884-1877
wspector@barringtontv.com