HOFFMAN ESTATES, IL -- (Marketwire) -- 08/08/11 -- Barrington Broadcasting Group LLC ("Barrington") announced Monday its financial results for the three months and six months ended June 30, 2011. Highlights are as follows:
-- Gross revenues for the quarter ended June 30, 2011 increased 4.3% to $34.2 million from $32.7 million for the quarter ended June 30, 2010. The increase was primarily due to an increase in local revenues of $1.5 million, or 8.0%, to $20.5 million. National revenues were unchanged at $7.0 million for the quarter, and political revenues decreased $0.6 million to $0.4 million. Retransmission revenues increased $0.5 million, or 23.0%, to $2.5 million. Other revenues increased $0.1 million, or 1.7%, to $3.7 million.
-- Net revenues (gross revenues less agency commissions and other direct costs) for the quarter ended June 30, 2011 increased 4.7%, or $1.3 million, to $29.4 million from $28.1 million for the quarter ended June 30, 2010.
-- Operating expenses for the quarter ended June 30, 2011, not including depreciation and amortization, increased 0.4%, or $0.1 million, to $19.1 million from $19.0 million for the quarter ended June 30, 2010.
-- Broadcast Cash Flow (as defined herein) for the quarter ended June 30, 2011 increased 5.6% to $11.4 million from $10.8 million for the quarter ended June 30, 2010.
-- Gross revenues for the six months ended June 30, 2011 increased 3.7% to $66.1 million from $63.7 million for the six months ended June 30, 2010. The increase was primarily due to an increase in local revenues of $1.9 million, or 5.0%, to $39.1 million and an increase in national revenues of $0.8 million, or 5.8%, to $14.3 million. Political revenues decreased $1.3 million to $0.8 million. Retransmission revenues increased $0.9 million, or 21.6%, to $5.0 million, and other revenues increased $0.1 million, or 1.7%, to $7.0 million.
-- Net revenues (gross revenues less agency commissions and other direct costs) for the six months ended June 30, 2011 increased 4.0%, or $2.2 million, to $56.8 million from $54.7 million for the six months ended June 30, 2010.
-- Operating expenses for the six months ended June 30, 2011, not including depreciation and amortization, were unchanged at $38.5 million.
-- Broadcast Cash Flow for the six months ended June 30, 2011 increased 5.7% to $20.7 million from $19.6 million for the six months ended June 30, 2010
"Our continued focus on local sales produced sales that more than offset the slowdown in national sales during the quarter as well as the decrease in political revenues from 2010. We remain committed to the Company's three key priorities of re-engineering of our station-level operations, development of direct local sales strategies, and the growth of the stations' local digital platforms. Our focus on these areas contributed to record second quarter Broadcast Cash Flow results," 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 3:00 PM (ET) on Tuesday, August 9, 2011. 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 August 9, 2011 at 5:00 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 4459735.
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 June 30, 2011 which will be posted on Barrington's website (www.barringtontv.com) on August 12, 2011. Barrington's results for the quarter ended June 30, 2011 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.
Barrington Broadcasting Group LLC
Consolidated Financial Information
For the Three Months and Six Months Ended June 30, 2011 and June 30, 2010
(Unaudited)
Three Months Ended Six Months Ended
(Dollars in thousands) 6/30/2011 6/30/2010 6/30/2011 6/30/2010
Statement of Operations Data:
Net revenue $ 29,408 $ 28,092 $ 56,827 $ 54,654
Expenses:
Operating(1) 17,689 17,523 35,502 35,400
Depreciation and
amortization 3,440 3,228 6,641 6,543
Corporate 1,419 1,506 2,955 3,147
Total operating expenses 22,548 22,257 45,098 45,090
Income from operations 6,860 5,835 11,729 9,564
Total net interest expense(2) 4,289 5,216 8,480 10,789
Other income - (157) - (157)
Income (loss) before income taxes 2,571 776 3,249 (1,068)
Income tax expense(3) 125 74 209 146
Net income (loss) $ 2,446 $ 702 $ 3,040 $ (1,214)
Other Financial Data:
EBITDA(4) $ 10,300 $ 9,220 $ 18,370 $ 16,264
Adjusted EBITDA(5) 9,996 9,318 17,786 16,511
Broadcast Cash Flow(6) 11,415 10,812 20,722 19,609
Balance Sheet Data: Cash and cash equivalents $ 3,645
Total long-term debt, including current portions(7) $ 185,186
(1) Includes selling, technical, programming (including amortization of program broadcast rights) and general and administrative expenses. Also includes the net operating expenses in connection with Barrington's investment in joint ventures. (2) For the three months and six months ended June 30, 2011, net interest expense includes the write off of debt acquisition costs in the amount of $569 related to voluntary prepayments and mandatory excess cash flow payments made on the Barrington term loan facility and the voluntary reduction of its revolving facility. (3) Since Barrington is a limited liability company, federal taxes are passed through to its members and as such no provision has been made for federal income taxes. Income tax expense includes various state tax liabilities. (4) EBITDA is defined as net income (loss) before income taxes, interest expense, depreciation and amortization. EBITDA is a measure commonly used by financial analysts in evaluating operating performance of companies. Accordingly, management believes that EBITDA may be useful in assessing Barrington's operating performance and Barrington's ability to meet its debt service requirements. A reconciliation of EBITDA to net income (loss) is provided below.
Three Months Ended Six Months Ended
(Dollars in thousands) 6/30/2011 6/30/2010 6/30/2011 6/30/2010
Reconciliation of EBITDA:
Net income (loss) $ 2,446 $ 702 $ 3,040 $ (1,214)
Total net interest expense 4,289 5,216 8,480 10,789
Income tax expense 125 74 209 146
Depreciation and amortization 3,440 3,228 6,641 6,543
EBITDA $ 10,300 $ 9,220 $ 18,370 $ 16,264
(5) Adjusted EBITDA is defined as EBITDA before amortization of program and broadcast rights and network revenues, other non-cash charges, gains or losses on dispositions of assets and other non-recurring items and after program broadcast rights payments and payments from networks. Certain financial covenants in Barrington's credit facility contain ratios based on Adjusted EBITDA and the restricted payment and debt incurrence covenants in the indenture governing Barrington's senior subordinated notes are based on Adjusted EBITDA. In addition, management believes that Adjusted EBITDA may be useful in assessing Barrington's operating performance and Barrington's ability to meet its debt service requirements because Adjusted EBITDA, as opposed to EBITDA, more accurately reflects Barrington's operating performance as it takes into account industry specific adjustments such as amortization of program broadcast rights, program broadcast rights payments, amortization of network revenues, cash payments from networks, as well as gains and losses on dispositions of assets and other non-recurring items. A reconciliation of Adjusted EBITDA to EBITDA is provided below.
Three Months Ended Six Months Ended
(Dollars in thousands) 6/30/2011 6/30/2010 6/30/2011 6/30/2010
Reconciliation of Adjusted EBITDA:
EBITDA $ 10,300 $ 9,220 $ 18,370 $ 16,264
Amortization of program broadcast rights 1,153 1,198 2,305 2,405
Program broadcast rights payments (1,488) (1,071) (2,990) (2,381)
Amortization of network revenues(a) (127) (185) (179) (278)
Cash payments from networks 127 207 171 342
Other adjustments to arrive at
Adjusted EBITDA(b) 31 (51) 109 159
Adjusted EBITDA $ 9,996 $ 9,318 $ 17,786 $ 16,511
(a) represents net amounts due from networks which are deferred and amortized over the length of the respective network affiliation agreements.
(b) For the three months ended June 30, 2011 and 2010, consists of separation costs of $31 and $94, respectively. Also for the three months ended June 30, 2010, consist of $25 in non-recurring costs in respect of various joint sales and shared service agreements, a credit of $13 received in 2010 for fees and expenses related the amendment of our credit agreement in February 2009 and $157 in gain related to the exchange of assets with Sprint Nextel. For the six months ended June 30, 2011 and 2010, respectively, consists of separation costs of $90 and $267, as well as $19 and $62 in non-recurring costs in respect of various joint sales and shared service agreements. In addition, for the six months ended June 30, 2010, includes credit received of $13 for fees and expenses related to the amendment of our credit agreement in February 2009 and $157 in gain related to the exchange of assets with Sprint Nextel. (6) Broadcast Cash Flow is defined as Adjusted EBITDA before provision for corporate overhead costs. Broadcast Cash Flow is a measure commonly used by financial analysts in evaluating operating performance of broadcast companies. Accordingly, management believes that Broadcast Cash Flow may be useful in assessing Barrington's operating performance and Barrington's ability to meet its debt service requirements. A reconciliation of Broadcast Cash Flow to Adjusted EBITDA is presented below.
Three Months Ended Six Months Ended
(Dollars in thousands) 6/30/2011 6/30/2010 6/30/2011 6/30/2010
Reconciliation of Broadcast Cash Flow:
Adjusted EBITDA $ 9,996 $ 9,318 $ 17,786 $ 16,511
Corporate overhead costs(a) 1,419 1,494 2,936 3,098
Broadcast Cash Flow $ 11,415 $ 10,812 $ 20,722 $ 19,609
(a) The add back of corporate overhead costs is reduced by one-time costs incurred in connection with various joint sales and shared service agreements for 2010 of $25, and is partially offset by a credit received of $13 in 2010 for fees and expenses related to the amendment of our credit agreement in February 2009. (7) Includes (i) Barrington's guarantee of indebtedness of SagamoreHill of Carolina, LLC and SagamoreHill of Carolina Licenses, LLC, licensee of station WWMB (Barrington programs WWMB pursuant to a local marketing agreement) and (ii) Barrington's guarantee and other credit support with respect to Tucker Broadcasting of Traverse City, Inc., licensee of stations WGTU and WGTQ (Barrington provides sales and support services pursuant to joint sales and shared services agreement).
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 [email protected]