LIN TV Corp. (“LIN Media”; NYSE: TVL), a local multimedia
company, today reported results for its fourth quarter and full
year ended December 31, 2010.
Summary of Results for the Fourth Quarter
Ended December 31, 2010
- Net revenues increased by 24% to $125.1
million, compared to $101.1 million in the fourth quarter of
2009.
- Digital revenues, which include
Internet advertising revenues and retransmission consent fees,
increased by 28% to $17.1 million, compared to $13.4 million in the
fourth quarter of 2009.
- Political revenues increased by $19.9
million to $28.2 million, compared to $8.3 million in the fourth
quarter of 2009.
- Operating income increased by 50% to
$44.2 million, compared to operating income of $29.4 million in the
fourth quarter of 2009.
- Net income per diluted share was $0.37,
compared to net income per diluted share of $0.21 in the fourth
quarter of 2009.
Summary of Results for the Full Year Ended
December 31, 2010
- Net revenues increased by 24% to $420.0
million, compared to $339.5 million in 2009.
- Digital revenues increased by 42% to
$60.9 million, compared to $43.0 million in 2009.
- Political revenues increased by $36.2
million to $49.4 million, compared to $13.2 million in 2009.
- Operating income was $112.3 million,
compared to operating income of $22.1 million in 2009, which
included a non-cash impairment charge of $39.9 million.
- Net income per diluted share was $0.66,
compared to net income per diluted share of $0.18 in 2009.
Commenting on fourth quarter and full year 2010 results, the
Company’s President and Chief Executive Officer Vincent L. Sadusky
said: “2010 was marked by significant improvement in advertising,
despite the economy’s slow rebound, as local TV continued to prove
its unparalleled reach and effectiveness. Our unique local
advertising platforms, programs and coverage kept our inventory in
high demand during this election year and resulted in 16% higher
political advertising revenues in the fourth quarter of 2010 than
in the fourth quarter of 2008, the last major political year. Also
driving our strong performance was our ability to achieve
sustainable digital revenue growth of 28% for the quarter and 42%
for the year, along with continued cost discipline, both of which
will remain our focus in 2011.”
Operating Highlights
TV Station Ratings and Revenue
- The Company is ranked number one or
number two in 86% of its local markets, based on viewership among
key demographics, during the year ended December 31, 2010.1
- During 2010, local lifestyle programs
were launched in Indianapolis, Norfolk, Springfield, Mobile and
Albuquerque. As of December 31, 2010, the Company had local
lifestyle programs in nine of its markets. Key women audience share
grew for 88% of the Company’s local lifestyle programs in
2010.2
- The Company delivered approximately
1,400 more local programming hours during 2010 versus the prior
year.
- Core local and national advertising
sales combined, which exclude political advertising sales,
increased by 4% to $92.9 million in the fourth quarter of 2010, as
compared to $89.5 million in the fourth quarter of 2009, and
increased by 11% to $351.5 million during the year ended December
31, 2010, as compared to $316.1 million during the year ended
December 31, 2009.
- Nine out of fifteen of our top
advertising categories for local and national advertising sales
increased in the fourth quarter of 2010, as compared to the fourth
quarter of 2009. Twelve out of fifteen of our top advertising
categories for local and national advertising sales increased
during the year ended December 31, 2010, compared to the year ended
December 31, 2009. The automotive category, which represented 23%
of our local and national advertising sales in both the fourth
quarter of 2010 and during the year ended December 31, 2010,
increased by 10% and 34%, respectively, as compared to the same
periods in 2009, during which the automotive category represented
22% and 19%, respectively, of our local and national advertising
sales.
Digital and Interactive Initiatives
- Internet advertising and other
interactive revenues increased 58% and 124% in the fourth quarter
of 2010 and during the year ended December 31, 2010, respectively,
including revenues from the October 2009 acquisition of RMM,
compared to the same periods in 2009.
- During the year ended December 31,
2010, average time on site was more than 20 minutes per visit. The
Company delivered 116 million total video impressions and engaged
159 million daily unique visitors on its stations’ web sites.
- According to comScore’s December 2010
report, 94% of the Company’s measured station web sites ranked
number one or number two in their local market for unique visitors
and 88% ranked number one or number two in their local market for
time spent on site, versus the Company’s measured local broadcast
competitors.3
- Mobile impressions, which include usage
of the Company’s mobile websites and iPhone, iPad, Blackberry and
Android applications, were approximately 202 million during the
year ended December 31, 2010.
Operating Expenses
- General operating expenses in the
fourth quarter of 2010 increased by $5.8 million, or 9%, compared
to the fourth quarter of 2009, due primarily to increases in
variable direct costs driven by revenue growth.
____________________
1 Nielsen Media Research; Average of LIN’s 2010 Ratings Based on
Key Demographics: Feb., May, July, and Nov. M-F, Early Morning,
Early Evening, Late News. All Nielsen data included in this report
represents Nielsen’s estimates, and Nielsen has neither reviewed
nor approved the data included in this report.
2 Nielsen Media Research; May 2010 Ratings compared to November
2010 Ratings; Women 25-54.
3 comScore media metrics data; December 2010. The Company’s
Columbus site is not measured by comScore.
Key Balance Sheet and Cash Flow
Items
Total debt outstanding as of December 31, 2010 was $623.3
million, as compared to $683.0 million as of December 31, 2009.
Unrestricted cash and cash equivalent balances as of December 31,
2010 were $11.6 million, as compared to $11.1 million as of
December 31, 2009.
There were no amounts outstanding on the Company’s revolving
credit facility as of December 31, 2010, as compared to $204.0
million as of December 31, 2009, with $76.1 million available for
borrowing under that facility as of year-end. Following the
issuance of the Company’s 2010 audited financial statements, under
the terms of its credit facility, the Company will be required to
make an estimated $3.5 million mandatory principal payment on its
term loan. Additionally, the Company’s revolving credit commitments
will decrease from $76.1 million to approximately $49.0 million.
Consolidated leverage, as defined in the Company’s credit
agreement, was 4.3x as of December 31, 2010 as compared to 7.6x as
of December 31, 2009. Other components of cash flow in the fourth
quarter of 2010 include cash capital expenditures of $4.6 million
and cash payments for programming of $6.2 million.
Business Outlook
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 net revenues for the first quarter of
2011 will be flat to down 1% (or $0.0 million to $(1.2) million),
as compared to net revenues of $91.8 million in the first quarter
of 2010.
The Company expects that its direct operating and selling,
general and administrative expenses, which include variable sales
related expenses, will increase in the range of 5% to 7% (or $2.9
million to $3.6 million) in the first quarter of 2011 as compared
to reported expenses of $54.7 million in the first quarter of
2010.
The Company’s current outlook for revenues, expenses and cash
flow items for the first quarter of 2011, excluding special items,
are anticipated to be in the following ranges:
First Quarter of 2011 Net
advertising revenues $72.0 to $72.4
million Net digital revenues $15.6 to
$15.9 million Network comp/Barter/Other revenues
$3.0 to $3.5 million Total net revenues
$90.6 to $91.8 million
Direct operating and selling, general
andadministrative expenses(1)
$57.6 to $58.3
million
Station non-cash stock-based compensation expense
$0.4 to $0.5 million Amortization of program rights
$5.5 to $6.0 million Cash payments for
programming $6.5 to $7.0 million
Corporate expense(1) $5.9 to $6.4
million
Corporate non-cash stock-based
compensationexpense
$1.0 to $1.2 million Depreciation and
amortization of intangibles $6.5 to
$7.0 million Cash capital expenditures
$1.5 to $2.5 million Cash interest expense
$11.1 to $12.1 million Principal amortization of the term
loan $4.0 million Cash taxes
$0.0 to $0.1 million Effective tax rate
40% to 43% (1) Includes non-cash stock-based
compensation expense.
For the full year, the Company expects cash capital expenditures
to be within the range of $19.5 to $21.5 million, cash interest
expense of between $45 to $47 million, cash taxes of less than $1
million and our effective tax rate to range between 40% and
43%.
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.
Conference Call
The Company will hold a conference call to discuss its fourth
quarter and full year 2010 results today, March 16, 2011, at 8:30
AM Eastern Time. To participate in the call, please dial
1-888-791-4321 for U.S. callers and 1-913-312-0415 for
international callers. The call-in pass code is 3606193. 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 (under Latest LIN Media News) or on the Investor
Relations page (under Events). 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 March 30, 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.
Forward-Looking
Statements
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, statements regarding quarter and
full year station time sales order pacings; 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; 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.
LIN TV Corp. Consolidated Statements of Operations
(unaudited)
Three months ended December 31, Year ended
December 31, 2010 2009 2010 2009
(in thousands, except share data) Net revenues $
125,126 $ 101,111 $ 420,047 $ 339,474 Operating costs and
expenses: Direct operating 32,500 29,336 123,336 108,419 Selling,
general and administrative 28,223 26,026 106,959 101,115
Amortization of program rights 5,723 6,410 23,793 24,631 Corporate
6,059 4,897 23,984
18,090 General operating expenses 72,505 66,669 278,072
252,255 Depreciation, amortization and other operating
charges (benefits): Depreciation 7,002 7,230 28,129 30,365
Amortization of intangible assets 365 585 1,597 649 Impairment of
goodwill, broadcast licenses and broadcast equipment - - - 39,894
Restructuring charge 955 - 3,136 498 Loss (gain) from asset
dispositions 135 (2,756 ) (3,224 )
(6,300 ) Operating income 44,164 29,383 112,337 22,113
Other expense (income): Interest expense, net 13,069 11,972
51,525 44,286 Share of loss in equity investments 35 4,128 169
6,128 (Gain) loss on derivative instruments (686 ) (220 ) 1,898
(208 ) Loss (gain) on extinguishment of debt - - 2,749 (50,149 )
Other, net (18 ) (1,156 ) (728 ) (1,344
) Total other expense (income), net 12,400 14,724 55,613 (1,287 )
Income from continuing operations before provision for
income taxes 31,764 14,659 56,724 23,400 Provision for income taxes
10,682 3,897 20,226
13,841 Income from continuing operations
21,082 10,762 36,498 9,559 Discontinued operations:
Loss from discontinued operations, net
of a gain from the sale of discontinuedoperations of $11 and a
benefit from income taxes of $677 for the year endedDecember 31,
2009
- - - (446 ) Net
income $ 21,082 $ 10,762 $ 36,498 $ 9,113
Basic income per common share: Income from
continuing operations $ 0.38 $ 0.21 $ 0.68 $ 0.19 Loss from
discontinued operations, net of tax - -
- (0.01 ) Net income $ 0.38 $ 0.21
$ 0.68 $ 0.18
Weighted-average number of common shares
outstandingused in calculating basic income per common share
54,864 52,272 53,978 51,464
Diluted income per common
share: Income from continuing operations $ 0.37 $ 0.21 $ 0.66 $
0.19 Loss from discontinued operations, net of tax -
- - (0.01 ) Net income $ 0.37
$ 0.21 $ 0.66 $ 0.18
Weighted-average number of common shares
outstandingused in calculating diluted income per common share
56,270 53,286 55,489 51,499
LIN TV
Corp. Consolidated Balance Sheets (unaudited)
December 31, 2010 2009 (A) (in
thousands, except share data) ASSETS Current assets:
Cash and cash equivalents $ 11,648 $ 11,105 Restricted cash - 2,000
Accounts receivable, less allowance for doubtful accounts (2010 -
$2,233; 2009 - $2,272) 82,486 73,948 Other current assets
5,921 7,118 Total current assets 100,055
94,171 Property and equipment, net 154,127 165,061 Deferred
financing costs 7,759 8,389 Goodwill 117,259 117,259 Broadcast
licenses and other intangible assets, net 397,280 398,877 Other
assets 13,989 6,746 Total assets $
790,469 $ 790,503
LIABILITIES AND
STOCKHOLDERS' DEFICIT Current liabilities: Current portion of
long-term debt 9,573 16,372 Accounts payable 8,003 6,556 Accrued
expenses 42,353 41,916 Program obligations 9,528
10,319 Total current liabilities 69,457 75,163
Long-term debt, excluding current portion 613,687 666,582 Deferred
income taxes, net 185,997 166,432 Program obligations 7,240 2,092
Other liabilities 45,520 53,795 Total
liabilities 921,901 964,064
Stockholders' deficit:
Class A common stock, $0.01 par value,
100,000,000 shares authorized, Issued: 32,509,759 and
30,270,167 shares as of December 31, 2010 and 2009,
respectively Outstanding: 31,636,941 and 29,397,349
shares as of December 31, 2010 and 2009, respectively
294 294
Class B common stock, $0.01 par value,
50,000,000 shares authorized, 23,502,059 shares as
of December 31, 2010 and 2009, issued and outstanding;
convertible into an equal number of shares of Class A or
Class C common stock
235 235
Class C common stock, $0.01 par value,
50,000,000 shares authorized, 2 shares as of December
31, 2010 and 2009, issued and outstanding; convertible
into an equal number of shares of Class A common
stock
- - Treasury stock, 872,818 shares of Class A common stock as of
December 31, 2010 and 2009, at cost (7,869 ) (7,869 ) Additional
paid-in capital 1,109,814 1,104,161 Accumulated deficit (1,205,967
) (1,242,465 ) Accumulated other comprehensive loss (27,939
) (27,917 ) Total stockholders' deficit (131,432 )
(173,561 ) Total liabilities and stockholders' deficit $
790,469 $ 790,503
____________________
(A) During the fourth quarter of 2010, the Company identified a
$4.4 million understatement of goodwill related to its joint
venture with NBCUniversal, all of which was written off as an
impairment charge in 2008, and related deferred tax liabilities,
attributable to the initial joint venture purchase accounting in
1998. The Company corrected this error through revision of its 2008
financial statements by recording an additional $4.4 million of
goodwill impairment expense. As a result, deferred income taxes,
net was increased from $162.0 million to $166.4 million and
accumulated deficit was increased from $(1,238.1) million to
$(1,242.5) million as of December 31, 2009.
LIN TV Corp. Consolidated Statements of Cash Flows
(unaudited) Year ended
December 31, 2010 2009 (in
thousands) OPERATING ACTIVITIES: Net income $ 36,498 $
9,113 Loss from discontinued operations - 446 Adjustment to
reconcile net income to net cash provided by operating activities:
Depreciation 28,129 30,365 Amortization of intangible assets 1,597
649 Impairment of goodwill, broadcast licenses and broadcast
equipment - 39,894 Amortization of financing costs and note
discounts 4,519 4,273 Amortization of program rights 23,793 24,631
Program payments (26,915 ) (25,005 ) Loss (gain) on extinguishment
of debt 2,749 (50,149 ) Loss (gain) on derivative instruments 1,898
(208 ) Share of loss in equity investments 169 6,128 Deferred
income taxes, net 18,118 18,274 Stock-based compensation 4,863
2,413 Gain from asset dispositions (3,224 ) (6,300 ) Other, net
(2,838 ) (159 ) Changes in operating assets and liabilities, net of
acquisitions: Accounts receivable (8,538 ) (3,857 ) Other assets
2,239 1,169 Accounts payable 1,447 (2,839 ) Accrued interest
expense 3,326 (918 ) Other liabilities and accrued expenses
2,400 (20,573 )
Net cash provided by operating
activities, continuing operations 90,230 27,347
Net cash
used in operating activities, discontinued operations -
(101 )
Net cash provided by operating
activities 90,230 27,246
INVESTING ACTIVITIES: Capital expenditures (17,648 ) (10,247
) Cash paid for broadcast license rights - (7,561 ) Change in
restricted cash 2,000 (2,000 ) Payments for business combinations,
net of cash acquired (575 ) (1,236 ) Proceeds from the sale of
assets 200 783 Payments on derivative instruments (2,226 ) -
Shortfall loans to joint venture with NBCUniversal (4,079 )
- Other investments, net (1,980 ) -
Net
cash used in investing activities, continuing operations
(24,308 ) (20,261 )
Net cash provided by investing activities,
discontinued operations 660 5,875
Net cash used in investing activities (23,648 )
(14,386 )
FINANCING ACTIVITIES: Net proceeds
on exercises of employee and director stock-based compensation 790
- Proceeds from borrowings on long-term debt 213,000 91,000
Principal payments on long-term debt (274,351 ) (106,379 ) Payment
of long-term debt issue costs (5,033 ) (3,838 )
Net cash used in financing activities, continuing operations
(65,594 ) (19,217 )
Net cash used in financing
activities, discontinued operations (445 ) (2,644
)
Net cash used in financing activities (66,039 )
(21,861 ) Net increase (decrease) in cash and cash
equivalents 543 (9,001 ) Cash and cash equivalents at the beginning
of the period 11,105 20,106 Cash and
cash equivalents at the end of the period $ 11,648 $ 11,105
Lin TV (NYSE:TVL)
과거 데이터 주식 차트
부터 7월(7) 2024 으로 8월(8) 2024
Lin TV (NYSE:TVL)
과거 데이터 주식 차트
부터 8월(8) 2023 으로 8월(8) 2024