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Young Broadcasting Announces Fourth Quarter Results
Entertainment Editors/Business Editors
NEW YORK--(BUSINESS WIRE)--Feb. 17, 2004--Young Broadcasting Inc. ("YBI") (NASDAQ:YBTVA) today announced final results for the fourth quarter and full year ended December 31, 2003. Local and national revenue increased by 2.5% over the prior year fourth quarter and the Company narrowed its net loss from the prior year.
Highlights for the periods are as follows:
-- Local revenue increased 6.1% for the year and 5.3% for the fourth quarter.
-- National revenue increased 2.3% for the year.
-- Operating expenses declined $500,000 in the fourth quarter.
-- For the full year, KRON-TV, the Company's San Francisco independent station, increased local and national revenues by 12.2% as compared to 2.4% growth in the San Francisco television advertising market.
-- In the November ratings period, KRON-TV's Prime audience was larger than the local Fox affiliate, KTVU-TV.
-- Two of the Company's network affiliated stations have successfully launched digital channel UPN affiliates.
Fourth Quarter/Year-End Results:
Net revenue for the three months ended December 31, 2003 decreased to $55.1 million from $66.2 million for the same prior year period. The principal reason for this decline was a net decrease in quarterly political spending of $12.1 million. Local and national revenues grew 2.5% (excluding political revenue) in the fourth quarter 2003 as compared to the same period in 2002. Operating income for the fourth quarter of 2003 was $3.7 million as compared with $14.1 million in 2002 fourth quarter. This decline reflects the loss of political revenue in 2003.
For the year ended December 31, 2003, net revenue was $207.7 million as compared to $225.1 million for full year 2002. The net decline in political revenue for the full year was $22.5 million. Local and national revenues grew 4.7% (excluding political revenue) in 2003 compared to 2002. Operating income for the full year 2003 was $12.6 million as compared to $31.4 million in 2002. This decline is principally due to the loss of political revenues.
Vincent Young's Comments:
"The highlights of our year were the continued strong performance of KRON-TV and the growth we experienced in local and national advertising revenue," stated Vincent Young, Chairman of Young Broadcasting. "I was especially pleased with KRON-TV's successful execution of our business plan and ratings performance. This positions the station to take advantage of a pickup in the San Francisco market. We are optimistic about 2004 in general, considering the recent improvement in the economy and the impact of upcoming elections."
Network Affiliation Intangible Assets
As previously announced, the Company received a letter from the Securities and Exchange Commission commenting on the Company's accounting policy for recognizing the useful lives of its network affiliation agreements. The Company is announcing today that it is adopting a policy that such intangible assets will be amortized to income over a period of 25 years. Previously, these assets were accounted for as having an indefinite life. As a result of this decision, the Company is also announcing that it has restated its earnings for all 2002 quarters, the first three quarters of 2003 and the full year of 2002. Attached to this press release is a comparison of the years as reported and restated amounts affected by this decision.
This amortization policy has no impact on the Company's cash flows from operating activities in any period restated.
Fourth Quarter Conference Call:
Young Broadcasting will hold a conference call at 11:00 a.m. (ET), Tuesday, February 17, 2004, immediately following the release of its fourth quarter earnings report. The Company's press release will be issued through Business Wire at 7:00 a.m. (ET) that day. The full text of the release will be available on Bloomberg, Nexus, CompuServe, Dow Jones News Retrieval and several other services within 15 minutes of the scheduled release time.
You may participate in the conference call by dialing 1- (Passcode: YOUNG, Leader: Vincent Young.) This will enable you to listen to the presentation. At the end of the presentation you will have the opportunity to participate in a Q&A session with Vincent Young, CEO of Young Broadcasting Inc. and with James Morgan, the Company's CFO.
You may listen to a live web-cast of the call by going to http://youngbroadcasting.com. The archive will be available for replay through March 17, 2004. The webcast is also being distributed over CCBN's Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through CCBN's individual investor center at www.companyboardroom.com or by visiting any of the investor sites on CCBN's password-protected event management site, StreetEvents (www.streetevents.com). You may listen to a telephone replay of the entire call by dialing 1-through February 23, 2004.
Young Broadcasting owns eleven television stations and the national television representation firm, Adam Young Inc. Six stations are affiliated with the ABC Television Network (WKRN-TV - Nashville, TN, WTEN-TV - Albany, NY, WRIC-TV - Richmond, VA, WATE-TV - Knoxville, TN, WTVO-TV - Rockford, IL and WBAY-TV - Green Bay, WI), three are affiliated with the CBS Television Network (WLNS-TV - Lansing, MI, KLFY-TV - Lafayette, LA and KELO-TV - Sioux Falls, SD) and one is affiliated with the NBC Television Network (KWQC-TV - Davenport, IA). KRON-TV - San Francisco, CA is the largest independent station in the U.S. and the only independent VHF station in its market. The Company also operates separate UPN Network stations using its digital broadcast facilities in Sioux Falls, South Dakota and Rockford, Illinois.
Any statements in this press release that are not historical facts are forward-looking statements within the meaning of Section 21E of the Securities and Exchange Commission Act of 1934, as amended. Readers are advised that such forward-looking statements are subject to risks and uncertainties that could significantly affect actual results from those expressed in any such statements. Readers are directed to Young Broadcasting's Annual Report on Form 10-K for the year ended December 31, 2002, as well as its other filings from time to time with the Securities and Exchange Commission, for a discussion of such risks and uncertainties. Such risks and uncertainties include, among other things, the impact of changes in national and regional economies, the ability to successfully integrate acquired television stations (including achievement of synergies and cost reductions), pricing fluctuations in local and national advertising and volatility in programming costs. -0-
Year Ended Three Months Ended
December 31, December 31,
---------------------------------------------------
Restated Restated
2002 2003 2002 2003
----------- ----------- ----------- -----------
(dollars in thousands, except per share data)
Net revenue $ 225,108 $ 207,668 $ 66,191 $ 55,113
Operating expenses 167,517 169,215 45,941 45,437
Depreciation and
amortization 26,205 25,906 6,198 5,953
----------- ----------- ----------- -----------
Operating income 31,386 12,547 14,052 3,723
----------- ----------- ----------- -----------
Interest expense,
net (89,323) (64,793) (15,931) (16,919)
Non-cash change in
market valuation
of swaps 4,069 (3,130) (236) (686)
Loss on
extinguishments
of debt (7,585) - 1,806 -
Other (expenses)
income, net (868) 474 (431) 648
----------- ----------- ----------- -----------
(93,707) (67,449) (14,792) (16,957)
----------- ----------- ----------- -----------
Loss from
continuing
operations before
benefit from
income tax and
cumulative effect
of accounting
change (62,321) (54,902) (740) (13,234)
Benefit from
Income Tax 23,759 3,595 4 -
----------- ----------- ----------- -----------
Loss from
continuing
operations before
cumulative effect
of accounting
change (38,562) (51,307) (736) (13,234)
Income from
discontinued
operations,
net of
applicable taxes 155,013 2,190 154 -
----------- ----------- ----------- -----------
Income (loss)
before cumulative
effect of
accounting change 116,451 (49,117) (582) (13,234)
Cumulative effect
of accounting
change (184,904) - - -
----------- ----------- ----------- -----------
Net loss $ (68,453) $ (49,117) $ (582) $ (13,234)
=========== =========== =========== ===========
Net loss per
common share -
basic $ (3.48) $ (2.48) $ (0.03) $ (0.67)
=========== =========== =========== ===========
Weighted average
shares - basic 19,675,883 19,783,227 19,710,361 19,818,741
=========== =========== =========== ===========
Other Financial
Data:
Amortization of
program license
rights $ 17,574 $ 20,301 $ 4,790 $ 6,825
Payments for
program license
liabilities 17,573 20,597 4,972 6,807
Non-cash
compensation 1,146 1,113 226 237
Corporate overhead 10,813 13,234 2,435 3,653
Capital expenditures 19,126 20,429 11,790 11,815
-0-
First Second Third Fourth Full
Quarter Quarter Quarter Quarter Year
-----------------------------------------------------
2002 As Reported:
-----------------
Operating Income $(107) $8,461 $11,173 $14,782 $34,309
Interest
expense, net (26,810) (24,702) (21,880) (15,931) (89,323)
Non-cash change
in market
valuation of
swaps (4,257) 3,967 4,595 (236) 4,069
Loss on
extinguishment
of debt (4,692) (4,699) 1,806 (7,585)
Other (expense)
income, net (87) (171) (179) (431) (868)
-------------------------------------------------------
(31,154) (25,598) (22,163) (14,792) (93,707)
-------------------------------------------------------
Loss from
continuing
operations
before
(expense)
benefit for
income taxes
and cumulative
effect of
accounting
change (31,261) (17,137) (10,990) (10) (59,398)
(Provision)
benefit from
income taxes - 19,359 4,396 4 23,759
-------------------------------------------------------
Loss from
continuing
operations
before
cumulative
effect of
accounting
change (31,261) 2,222 (6,594) (6) (35,639)
Income from
discontinued
operations,
net of taxes,
including gain
on sale of
station 2,886 154,229 (2,256) 154 155,013
-------------------------------------------------------
Income (loss)
before
cumulative
effect of
accounting
change (28,375) 156,451 (8,850) 148 119,374
Cumulative
effect of
accounting
change, net of
taxes (184,904) - (184,904)
-------------------------------------------------------
Net income
(loss) $(213,279) $156,451 $(8,850) $148 $(65,530)
=======================================================
Basic income
(loss) per
common share:
Loss from
continuing
operations
before
cumulative
effect of
accounting
change $(1.59) $0.12 $(0.34) $(0.00) $(1.81)
Income from
discontinued
operations,
net $0.15 $7.84 $(0.11) $0.01 $7.88
Cumulative
effect of
accounting
change, net $(9.42) $- $- $- $(9.40)
-------------------------------------------------------
Net income
(loss) per
common share-
basic $(10.86) $7.96 $(0.45) $0.01 $(3.33)
=======================================================
Weighted
average
shares-basic 19,645,921 19,662,143 19,684,304 19,710,361 19,675,883
Diluted income
(loss) per
common share:
Loss from
continuing
operations
before
cumulative
effect of
accounting
change $(1.59) $0.11 $(0.34) $(0.00) $(1.81)
Income from
discontinued
operations,
net $0.15 $7.73 $(0.11) $0.01 $7.88
Cumulative
effect of
accounting
change, net $(9.42) $- $- $- $(9.40)
-------------------------------------------------------
Net income
(loss) per
common share-
basic $(10.86) $7.84 $(0.45) $0.01 $(3.33)
=======================================================
Weighted
average
shares-
diluted 19,645,921 19,943,268 19,684,304 19,710,361 19,675,883
First Second Third Fourth Full
Quarter Quarter Quarter Quarter Year
---------------------------------------------------
2002 As Restated:
-----------------
Operating Income $(838) $7,730 $10,442 $14,052 $31,386
Interest
expense, net (26,810) (24,702) (21,880) (15,931) (89,323)
Non-cash change
in market
valuation of
swaps (4,257) 3,967 4,595 (236) 4,069
Loss on
extinguishment
of debt (4,692) (4,699) 1,806 (7,585)
Other (expense)
income, net (87) (171) (179) (431) (868)
-------------------------------------------------------
(31,154) (25,598) (22,163) (14,792) (93,707)
-------------------------------------------------------
Loss from
continuing
operations
before
(expense)
benefit for
income taxes
and cumulative
effect of
accounting
change (31,992) (17,868) (11,721) (740) (62,321)
(Provision)
benefit from
income taxes - 19,359 4,396 4 23,759
-------------------------------------------------------
Loss from
continuing
operations
before
cumulative
effect of
accounting
change (31,992) 1,491 (7,325) (736) (38,562)
Income from
discontinued
operations,
net of taxes,
including gain
on sale of
station 2,886 154,229 (2,256) 154 155,013
-------------------------------------------------------
Income (loss)
before
cumulative
effect of
accounting
change (29,106) 155,720 (9,581) (582) 116,451
Cumulative
effect of
accounting
change, net of
taxes (184,904) - (184,904)
-------------------------------------------------------
Net income
(loss) $(214,010) $155,720 $(9,581) $(582) $(68,453)
=======================================================
Basic income
(loss) per
common share:
Loss from
continuing
operations
before
cumulative
effect of
accounting
change $(1.63) $0.08 $(0.37) $(0.04) $(1.96)
Income from
discontinued
operations,
net $0.15 $7.84 $(0.11) $0.01 $7.88
Cumulative
effect of
accounting
change, net $(9.41) $- $- $- $(9.40)
-------------------------------------------------------
Net income
(loss) per
common share-
basic $(10.89) $7.92 $(0.48) $(0.03) $(3.48)
=======================================================
Weighted
average
shares-Basic 19,645,921 19,662,143 19,684,304 19,710,361 19,675,883
Diluted income
(loss) per
common share:
Loss from
continuing
operations
before
cumulative
effect of
accounting
change $(1.63) $0.07 $(0.37) $(0.04) $(1.96)
Income from
discontinued
operations,
net $0.15 $7.73 $(0.11) $0.01 $7.88
Cumulative
effect of
accounting
change, net $(9.41) $- $- $- $(9.40)
-------------------------------------------------------
Net income
(loss) per
common share-
basic $(10.89) $7.80 $(0.48) $(0.03) $(3.48)
=======================================================
Weighted
average
shares-
diluted 19,645,921 19,943,268 19,684,304 19,710,361 19,675,883
-0-
First Second Third
Quarter Quarter Quarter
------------------------------------
2003 As Reported:
-----------------
Operating Income $ (67)$ 6,823 $ 4,261
Interest expense, net (16,020) (15,898) (15,956)
Non-cash change in market
valuation of swaps (1,461) 2,194 (3,177)
Loss on extinguishment of debt - -
Other (expense) income, net (173) 42 (43)
----------- ----------- -----------
(17,654) (13,662) (19,176)
----------- ----------- -----------
Loss from continuing operations
before (expense) benefit for
income taxes and cumulative
effect of accounting change (17,721) (6,839) (14,915)
(Provision) benefit from income
taxes - - 3,595
----------- ----------- -----------
Loss from continuing operations
before cumulative effect of
accounting change (17,721) (6,839) (11,320)
Income from discontinued
operations, net of taxes,
including gain on sale of station - 2,190
----------- ----------------------
Income (loss) before cumulative
effect of accounting change (17,721) (4,649) (11,320)
Cumulative effect of accounting
change, net of taxes - - -
----------- ----------- -----------
Net income (loss) $ (17,721)$ (4,649)$ (11,320)
=========== =========== ===========
Basic and diluted income (loss)
per common share:
Loss from continuing operations
before cumulative effect of
accounting change $ (0.90)$ (0.35)$ (0.57)
Income from discontinued
operations, net $ - $ 0.11 $ -
Cumulative effect of accounting
change, net $ - $ - $ -
----------- ----------- -----------
Net income (loss) per common
share-basic $ (0.90)$ (0.24)$ (0.57)
=========== =========== ===========
Weighted average shares-basic and
dilutive 19,737,156 19,770,090 19,803,188
First Second Third
Quarter Quarter Quarter
------------------------------------
2003 As Restated:
-----------------
Operating Income $ (798)$ 6,092 $ 3,530
Interest expense, net (16,020) (15,898) (15,956)
Non-cash change in market
valuation of swaps (1,461) 2,194 (3,177)
Loss on extinguishment of debt - -
Other (expense) income, net (173) 42 (43)
----------- ----------- -----------
(17,654) (13,662) (19,176)
----------- ----------- -----------
Loss from continuing operations
before (expense) benefit for
income taxes and cumulative
effect of accounting change (18,452) (7,570) (15,646)
(Provision) benefit from income
taxes - - 3,595
----------- ----------- -----------
Loss from continuing operations
before cumulative effect of
accounting change (18,452) (7,570) (12,051)
Income from discontinued
operations, net of taxes,
including gain on sale of station - 2,190
----------- ----------------------
Income (loss) before cumulative
effect of accounting change (18,452) (5,380) (12,051)
Cumulative effect of accounting
change, net of taxes - - -
----------- ----------- -----------
Net income (loss) $ (18,452)$ (5,380)$ (12,051)
=========== =========== ===========
Basic and diluted income (loss)
per common share:
Loss from continuing operations
before cumulative effect of
accounting change $ (0.93)$ (0.38)$ (0.61)
Income from discontinued
operations, net $ - $ 0.11 $ -
Cumulative effect of accounting
change, net $ - $ - $ -
----------- ----------- -----------
Net income (loss) per common
share-basic $ (0.93)$ (0.27)$ (0.61)
=========== =========== ===========
Weighted average shares-basic and
dilutive 19,737,156 19,770,090 19,803,188
CONTACT: Young Broadcasting Inc.
Vincent Young / James Morgan, or
The Lippin Group
Don Ciaramella,
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