SOURCE: Barrington Broadcasting Group

Barrington Broadcasting Group

May 09, 2011 17:00 ET

Barrington Reports First Quarter Operating Results

HOFFMAN ESTATES, IL--(Marketwire - May 9, 2011) - Barrington Broadcasting Group LLC ("Barrington") announced today its financial results for the three months ended March 31, 2011. Highlights are as follows:

  • Gross revenues for the quarter ended March 31, 2011 increased 3.1% to $31.9 million from $31.0 million for the quarter ended March 31, 2010. The increase was primarily due to increases in national revenues which increased $0.8 million, or 12.4%, to $7.3 million, and local revenues which increased $0.4 million, or 1.9%, to $18.6 million. Political revenues decreased $0.6 million, or 61.5%, to $0.4 million. Retransmission revenues increased $0.4 million, or 20.3%, to $2.4 million, and other revenues increased $0.1 million, or 1.6%, to $3.3 million for the quarter.

  • Net revenues (gross revenues less agency commissions and other direct costs) for the quarter ended March 31, 2011 increased 3.2% to $27.4 million from $26.6 million for the quarter ended March 31, 2010.

  • Operating expenses for the quarter ended March 31, 2011, not including depreciation and amortization, decreased 0.9%, or $0.2 million, to $19.3 million from $19.5 million for the quarter ended March 31, 2010 primarily as a result of reduced severance paid out during the quarter as well as a reduction in outside and professional fees and bad debt expense.

  • Broadcast Cash Flow (as defined herein) for the quarter ended March 31, 2011 increased 5.8% to $9.3 million from $8.8 million for the quarter ended March 31, 2010.

"The strength and momentum in national sales more than offset the decrease in political revenues from 2010. We continue to focus and 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 Tuesday, May 10, 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 May 10, 2011 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 4436710#.

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, 2011 which will be posted on Barrington's website (www.barringtontv.com) on May 13, 2011. Barrington's results for the quarter ended March 31, 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 Ended March 31, 2011 and March 31, 2010
                                (Unaudited)

                                                       Three Months Ended
                                                      --------------------
(Dollars in thousands)                                3/31/2011  3/31/2010
                                                      ---------  ---------

Statement of Operations Data:
Net revenue                                           $  27,419  $  26,562
Expenses:
  Operating(1)                                           17,813     17,877
  Depreciation and amortization                           3,201      3,315
  Corporate                                               1,536      1,641
                                                      ---------  ---------
  Total operating expenses                               22,550     22,833
                                                      ---------  ---------

Income from operations                                    4,869      3,729
Total net interest expense                                4,191      5,573
                                                      ---------  ---------
Income (loss) before income taxes                           678     (1,844)
Income tax expense(2)                                        84         72
                                                      ---------  ---------
Net income (loss)                                     $     594  $  (1,916)
                                                      =========  =========


Other Financial Data:
EBITDA(3)                                             $   8,070  $   7,044
Adjusted EBITDA(4)                                        7,790      7,193
Broadcast Cash Flow(5)                                    9,307      8,797

Balance Sheet Data:
Cash and cash equivalents                             $   4,865
                                                      =========
Total long-term debt, including current portions(6)   $ 190,709
                                                      =========

(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) 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.

(3) 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
                                                      --------------------
(Dollars in thousands)                                3/31/2011  3/31/2010
                                                      ---------  ---------

Reconciliation of EBITDA:

Net income (loss)                                     $     594  $  (1,916)
Total net interest expense                                4,191      5,573
Income tax expense                                           84         72
Depreciation and amortization                             3,201      3,315
                                                      ---------  ---------
EBITDA                                                $   8,070  $   7,044
                                                      =========  =========

(4) 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)                                3/31/2011  3/31/2010
                                                      ---------  ---------

Reconciliation of Adjusted EBITDA:

EBITDA                                                $   8,070  $   7,044
Amortization of program broadcast rights                  1,152      1,207
Program broadcast rights payments                        (1,502)    (1,310)
Amortization of network revenues(a)                         (52)       (93)
Cash payments from networks                                  44        135
Other adjustments to arrive at Adjusted EBITDA(b)            78        210
                                                      ---------  ---------
Adjusted EBITDA                                       $   7,790  $   7,193
                                                      =========  =========

      (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, 2011 and 2010, consists of
          separation costs of $59 and $173, as well as $19 and $37 in
          non-recurring costs in respect of various joint sales and shared
          service agreements.


(5) 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)                                3/31/2011  3/31/2010
                                                      ---------  ---------

Reconciliation of Broadcast Cash Flow:
Adjusted EBITDA                                       $   7,790  $   7,193
Corporate overhead costs(a)                               1,517      1,604
                                                      ---------  ---------
Broadcast Cash Flow                                   $   9,307  $   8,797
                                                      =========  =========

           (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 2011 and 2010.


(6) 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's term loans.

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