SOURCE: Barrington Broadcasting Group

Barrington Broadcasting Group

May 05, 2010 17:48 ET

Barrington Reports First Quarter Operating Results

HOFFMAN ESTATES, IL--(Marketwire - May 5, 2010) - Barrington Broadcasting Group LLC ("Barrington") announced today its financial results for the three months ended March 31, 2010. Highlights are as follows:

  • Gross revenues for the quarter ended March 31, 2010 increased 18.9% to $31.0 million from $26.0 million for the quarter ended March 31, 2009. The increase was primarily due to increases in local revenues which increased $1.7 million, or 10.5%, to $18.2 million, national revenues which increased $0.7 million, or 11.2%, to $6.5 million, and political revenues which increased $0.9 million to $1.0 million Retransmission revenues increased $0.7 million, or 54.2%, to $2.0 million, and other revenues increased $1.0 million, or 42.3%, to $3.2 million for the quarter.

  • Net revenues (gross revenues less agency commissions and other direct costs) for the quarter ended March 31, 2010 increased 18.4% to $26.6 million from $22.4 million for the quarter ended March 31, 2009.

  • Operating expenses for the quarter ended March 31, 2010, not including depreciation and amortization, decreased 2.6%, or $0.5 million, to $19.5 million from $20.0 million for the quarter ended March 31, 2009 primarily as a result of workforce reductions that occurred in 2009 as well as a reduction of operating expenses at our station in Peoria due to the joint sales and shared services agreements with Granite Broadcasting effective March 2, 2009.

  • Broadcast Cash Flow (as defined herein) for the quarter ended March 31, 2010 increased 101.6% to $8.8 million from $4.4 million for the quarter ended March 31, 2009.

"The momentum that the Company experienced in late 2009 continued into the first quarter of 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 first 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 first quarter results at 11:00 AM (ET) on Thursday, May 6, 2010. 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 May 6, 2010 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 4288247#.

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 March 31, 2010 which will be posted on Barrington's website (www.barringtontv.com) on May 13, 2010. Barrington's results for the quarter ended March 31, 2010 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 Ended March 31, 2010 and March 31, 2009
                                Unaudited


                                                       Three Months Ended
                                                      --------------------
(Dollars in thousands)                                3/31/2010  3/31/2009
                                                      ---------  ---------

Statement of Operations Data:(1)
Net revenue                                           $  26,562  $  22,431
Expenses:
  Operating(2)                                           17,877     18,476
  Depreciation and amortization                           3,315      6,958
  Corporate                                               1,641      1,564
                                                      ---------  ---------
  Total operating expenses                               22,833     26,998
                                                      ---------  ---------

Income (loss) from operations                             3,729     (4,567)
Total net interest expense                                5,573      6,464
Non-operating income(3)                                       -    (54,587)
                                                      ---------  ---------
(Loss) Income before income taxes                        (1,844)    43,556
Income tax expense(4)                                        72        152
                                                      ---------  ---------
Net (loss) income                                     $  (1,916) $  43,404
                                                      =========  =========


Other Financial Data:
EBITDA(5)                                             $   7,044  $  56,978
Adjusted EBITDA(6)                                        7,193      3,208
Broadcast Cash Flow(7)                                    8,797      4,364

Balance Sheet Data:
Cash and cash equivalents                             $  22,149
                                                      =========
Total long-term debt, including current portions(8)   $ 225,391
                                                      =========

(1) Statement of operations data is based on Barrington's historical
consolidated financial results for the three months ended March 31, 2010
and 2009, and includes the results from joint sales and shared services
agreements entered into with Granite Broadcasting Corporation ("Granite")
beginning March 2, 2009.

(2) 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.

(3) For the three months ended March 31, 2009, consists of gain of $54,117
 on the extinguishment of debt related to the repurchase of a portion of
our 10-1/2% Senior Subordinated Notes due 2014 (the "Notes").  Also, for
the three months months ended March 31, 2009, includes gain of $470 on the
exchange of fixed assets with Nextel.

(4) 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.

(5) 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 loss is
provided below.



                                                       Three Months Ended
                                                      --------------------
(Dollars in thousands)                                3/31/2010  3/31/2009
                                                      ---------  ---------
Reconciliation of EBITDA:

Net (loss) income                                     $  (1,916) $  43,404
Total net interest expense                                5,573      6,464
Income tax expense(a)                                        72        152
Depreciation and amortization                             3,315      6,958
                                                      ---------  ---------
EBITDA                                                $   7,044  $  56,978
                                                      =========  =========

      (a) 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.

(6) 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
                                                      --------------------
(Dollars in thousands)                                3/31/2010  3/31/2009
                                                      ---------  ---------
Reconciliation of Adjusted EBITDA:

EBITDA                                                $   7,044  $  56,978
Amortization of program broadcast rights                  1,207      1,219
Program broadcast rights payments                        (1,310)    (1,289)
Amortization of network revenues(a)                         (93)       (81)
Cash payments from networks                                 135        120
Other adjustments to arrive at Adjusted EBITDA(b)           210    (53,739)
                                                      ---------  ---------

Adjusted EBITDA                                       $   7,193  $   3,208
                                                      =========  =========

      (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 March 31, 2010, consists of severence
          costs of $173 and  expenses incurred related to one-time
          costs in respect of acquisitions of $37.  For the three months
          ended March 31, 2009, consists of $54,117 in gain on the
          extinguishment of debt related to the repurchase of a portion of
          the Notes and $470 on the exchange of assets with Nextel.
          Also includes severance costs of $440, expenses incurred related
          to on-time costs in respect of acquisitions of $131 and fees and
          expenses of $277 related to the amendment of Barrington's credit
          agreement.


(7) 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
                                                      --------------------
(Dollars in thousands)                                3/31/2010  3/31/2009
                                                      ---------  ---------
Reconciliation of Broadcast Cash Flow:
Adjusted EBITDA                                       $   7,193  $   3,208
Corporate overhead costs(a)                               1,604      1,156
                                                      ---------  ---------
Broadcast Cash Flow                                   $   8,797  $   4,364
                                                      =========  =========


      (a) The add back of corporate overhead costs is reduced by one-time
          costs in connection with acquisitions for 2010, as well as
          costs in connection with the Granite agreements and the Credit
          Agreement Amendment for 2010.

(8) 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), (ii) Barrington's guarantee of, and other credit support with
respect to, Tucker's $7 million of term loans, and (iii) the full drawdown
of Barrington's revolving credit facility of $21 million.

Contact Information

  • 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 Contact