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|LIN TV Corp. Announces First Quarter 2011 Results|
PROVIDENCE, R.I., Apr 27, 2011 (BUSINESS WIRE) -- LIN TV Corp. ("LIN Media"; NYSE: TVL), a local multimedia company, today reported its first quarter 2011 results.
Summary of Results for the First Quarter Ended March 31, 2011
Commenting on first quarter 2011 results, the Company's President and Chief Executive Officer Vincent L. Sadusky said: "We delivered another strong performance in the first quarter, in spite of significant uncertainty that continues to weigh on the economy. Digital revenues increased 31% compared to the prior year and are now 19% of total net revenues, the highest contribution since the launch of our digital strategy in 2007. Our growth in digital revenues, strength of our local brands and multiplatform strategy, helped offset the decrease in political revenues to begin this non election year and contributed to our overall growth."
TV Station Ratings and Revenue
Digital and Interactive Initiatives
1 Nielsen Media Research; Average of LIN Media's February 2011 ratings based on key demographics: M-F, early morning, early evening, late news. All Nielsen data included in this release represents Nielsen's estimates, and Nielsen has neither reviewed nor approved the data included in this report.
2 comScore media metrics data; March 2011. The Company's Columbus site is not measured by comScore.
Key Balance Sheet and Cash Flow Items
Total debt outstanding as of March 31, 2011 was $619.6 million, as compared to $623.3 million as of December 31, 2010. Cash and cash equivalent balances as of March 31, 2011 were $26.8 million, as compared to $11.6 million as of December 31, 2010. During the quarter ended March 31, 2011, the Company paid $4.0 million of principal on its term loan balance. There were no amounts outstanding on the Company's revolving credit facility at March 31, 2011 or December 31, 2010, with $48.7 million available for borrowing under the facility as of March 31, 2011. Consolidated leverage, as defined in the Company's credit agreement, was 4.4x as of March 31, 2011, compared to 4.3x as of December 31, 2010. Other components of cash flow for the first quarter of 2011 included cash capital expenditures of $2.6 million and cash payments for programming of $6.8 million.
On April 8, 2011, the FCC approved applications from ACME Television Inc. and its affiliate ACME Television Licenses of Ohio, LLC to assign the FCC license of WCWF-TV in the Green-Bay-Appleton, WI market to a subsidiary of LIN Television, and to assign the license of WBDT-TV in the Springfield, OH market to a third party, WBDT Television, LLC. The Company expects its acquisitions of WCWF-TV and certain assets of WBDT-TV to close during the second quarter of 2011.
The Company has provided historical quarterly financial information for its continuing operations on its web site. Interested parties should go to the Investor Relations section of www.linmedia.com.
The Company expects that second quarter 2011 net revenues will increase in the range of 3% to 6% (or $2.5 million to $5.7 million), compared to net revenues of $99.5 million for the second quarter of 2010.
The Company expects that its direct operating and selling, general and administrative expenses, which includes digital cost of sales and other variable sales related expenses, will increase in the range of 7% to 9% (or $4.2 million to $5.3 million) for the second quarter of 2011, compared to reported expenses of $56.5 million for the second quarter of 2010.
The Company's current outlook for revenues, expenses and cash flow items for the second quarter of 2011, excluding special items, are anticipated to be in the following ranges:
(1) Includes non-cash stock-based compensation expense.
The Company advises that all of the information and factors set forth above are subject to risks, uncertainties and assumptions (see the "Forward-Looking Statements" heading below), which could individually or collectively cause actual results to differ materially from those projected above.
The Company will hold a conference call to discuss its first quarter results today, April 27, 2011, at 10:00 AM Eastern Time. To participate in the call, please dial 1-888-713-3596 for U.S. callers and 1-913-312-1443 for international callers. The call-in pass code is 3676330. Callers who intend to participate in the call should dial in 10 minutes before the start of the call to ensure access. The conference call will also be webcast simultaneously from the Company's web site, www.linmedia.com, and can be accessed there through a link on the home page. For those unavailable to participate in the live teleconference, a replay can be accessed via the Investor Relations section of www.linmedia.com or by dialing 1-888-203-1112 and entering the same pass code as above. The telephone replay will be available through May 11, 2011.
Access to Non-GAAP Financial Measures and Other Supplemental Financial Data
The Company reports and discusses its operating results using financial measures consistent with generally accepted accounting principles ("GAAP") and believes this should be the primary basis for evaluating its performance. Non-GAAP financial measures such as Broadcast Cash Flow ("BCF"), Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") and Free Cash Flow ("FCF") should not be viewed as alternatives or substitutes for GAAP reporting. However, BCF, Adjusted EBITDA and FCF are common supplemental measures of performance used by investors, lenders, rating agencies and financial analysts. As a result, these non-GAAP measures can provide certain additional insight about the market value of the Company and its stations; the Company's ability to fund acquisitions, investments and working capital needs; the Company's ability to service its debt; the Company's performance versus other peer companies in its industry; and other operating performance trends for its business. The Company makes available reconciliations of its operating income (loss), a GAAP reporting measure, to BCF, Adjusted EBITDA and FCF on the Company's web site. In addition, the Company provides additional information on its web site, at the same location, regarding historical revenue by source, pro forma income statement information and certain other components of cash flow. Interested parties should go to the Investor Relations section of www.linmedia.com.
The information discussed in this press release, particularly in the section with the heading Business Outlook, includes forward-looking statements about the Company's future operating results within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The Company based these forward-looking statements on its current assumptions, knowledge, estimates and projections about factors that could affect its future operations. Although the Company believes that its assumptions made in connection with the forward-looking statements are reasonable, no assurances can be given that those assumptions and expectations will prove to be correct. Statements in this press release that are forward-looking include, but are not limited to, local, national and political advertising growth; changes in digital, network compensation, barter and other revenues; changes in direct operating, selling, general and administrative, barter, amortization of program rights and corporate expenses; and cash programming, cash capital expenditures, cash interest expense and principal amortization, cash tax payments and effective tax rates and distributions from equity investments. These forward-looking statements are subject to various risks, uncertainties and assumptions which may cause these expectations and assumptions not to occur or to differ materially from those outcomes projected in the forward-looking statements. Such risks and uncertainties include, but are not limited to, ongoing economic uncertainty; restrictions on the Company's operations as a result of the Company's indebtedness; global or local events that could disrupt TV broadcasting; softening of the domestic advertising market; further consolidation of national and local advertisers, and the national sales representation market; potential liabilities related to the Company's guarantee of the debt obligations of its joint venture with NBCUniversal; risks associated with acquisitions, including integration of acquired businesses; changes in TV viewing patterns, ratings and commercial viewing measurement; increases in news and syndicated programming costs, and capital expenditures; changes in television network affiliation agreements and retransmission consent agreements; changes in government regulation; competition; seasonality; effects of complying with accounting standards; potential influence of certain stockholders, including HM Capital Partners LLC and its affiliates, and other risks discussed in the Company's Annual Report on Form 10-K and other filings made with the Securities and Exchange Commission (which are available on the Investor Relations section of www.linmedia.com, or at www.sec.gov), which are incorporated in this release by reference. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless otherwise required to by applicable law.
About LIN Media
LIN Media, along with its subsidiaries, is a local multimedia company that owns, operates or services 32 network-affiliated broadcast television stations, interactive television station and niche web sites, and mobile platforms in 17 U.S. markets. LIN Media's online advertising business, RMM, leverages unique technology, new product innovation and customized interactive and mobile advertising solutions to deliver measurable results to local, regional and national clients.
LIN TV Corp. is traded on the New York Stock Exchange under the symbol "TVL". Financial information about the company is available at www.linmedia.com.
SOURCE: LIN TV Corp.
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