FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission File No. 0-12404
JACOR COMMUNICATIONS, INC.
An Ohio Corporation Employer
Identification
No. 31-0978313
1300 PNC Center
201 East Fifth Street
Cincinnati, Ohio 45202
Telephone (513) 621-1300
Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding twelve
months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such
filing requirements for the past ninety days.
Yes X No
At November 10, 1995, 18,113,424 shares of common stock were
outstanding.
JACOR COMMUNICATIONS, INC.
INDEX
Page
Number
PART I. Financial Information
Item 1. - Financial Statements
Condensed Consolidated Balance Sheets
as of September 30, 1995 and December 31,
1994 3
Condensed Consolidated Statements of
Operations for the three months and
nine months ended September 30, 1995
and 1994 4
Condensed Consolidated Statements of
Cash Flows for the nine months ended
September 30, 1995 and 1994 5
Notes to Condensed Consolidated Financial
Statements 6
Item 2. - Management's Discussion and Analysis
of Financial Condition and Results of
Operations 8
PART II. Other Information
Item 6. - Exhibits and Reports on Form 8-K 13
Signatures 14
JACOR COMMUNICATIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, December 31,
1995 1994
(UNAUDITED) (AUDITED)
ASSETS
Current assets:
Cash and cash equivalents $ 5,655,810 $ 26,974,838
Accounts receivable, less allowance for
doubtful accounts of $1,759,000 in 1995
and $1,384,000 in 1994 25,342,062 24,500,652
Other current assets 4,900,736 4,650,301
Total current assets 35,898,608 56,125,791
Property and equipment, net 30,387,946 22,628,841
Intangible assets, net 114,738,417 89,543,301
Other assets 22,330,705 5,281,422
Total assets $203,355,676 $173,579,355
LIABILITIES
Current liabilities:
Accounts payable $ 6,276,924 $ 2,723,717
Accrued payroll 2,125,292 3,274,902
Accrued federal, state and
local income tax 2,928,773 2,092,616
Other current liabilities 4,224,235 3,397,117
Total current liabilities 15,555,224 11,488,352
Long-term debt 33,500,000
Other liabilities 3,484,388 3,869,567
Deferred tax liability 8,825,456 9,177,456
Total liabilities 61,365,068 24,535,375
SHAREHOLDERS' EQUITY
Common stock, no par value, $.10 per share
stated value 1,853,843 1,959,038
Additional paid-in capital 122,690,571 137,404,815
Common stock warrants 388,055 390,167
Retained earnings 17,058,139 9,289,960
Total shareholders' equity 141,990,608 149,043,980
Total liabilities and
shareholders' equity $203,355,676 $173,579,355
The accompanying notes are an integral part
of the condensed consolidated financial statements.
JACOR COMMUNICATIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the three months and nine months ended September 30, 1995 and 1994
(UNAUDITED)
Three Months Ended Nine Months Ended
September 30, September 30,
1995 1994 1995 1994
Broadcast revenue $36,115,286 $31,912,183 $97,648,317 $87,543,871
Less agency commissions 3,821,724 3,413,707 10,472,272 9,253,147
Net revenue 32,293,562 28,498,476 87,176,045 78,290,724
Broadcast operating expenses 23,127,964 20,496,794 65,241,279 59,919,688
Depreciation and amortization 2,442,475 2,519,255 6,782,582 7,235,023
Corporate general and
administrative expenses 823,651 698,212 2,564,180 2,506,449
Operating income 5,899,472 4,784,215 12,588,004 8,629,564
Interest expense (383,864) (137,591) (593,070) (428,065)
Other income, net 347,697 286,660 1,052,246 797,601
Income before
income taxes 5,863,305 4,933,284 13,047,180 8,999,100
Income tax expense (2,375,000) (2,303,900) (5,279,000) (4,215,900)
Net income $ 3,488,305 $ 2,629,384 $ 7,768,180 $4,783,200
Income per common share $ 0.17 $ 0.12 $ 0.37 $ 0.22
Number of common shares used
in per share computations 21,008,772 21,413,359 21,136,058 21,454,531
The accompanying notes are an integral
part of the condensed consolidated financial statements.
JACOR COMMUNICATIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
for the nine months ended September 30, 1995 and 1994
(UNAUDITED)
1995 1994
Cash flows from operating activities:
Net income $ 7,768,180 $ 4,783,200
Adjustments to reconcile net income
to net cash used by operating activities:
Depreciation 2,306,283 1,846,365
Amortization of intangibles 4,476,298 5,388,658
Provision for losses on accounts
and notes receivable 747,852 920,192
Decrease in deferred tax liability (352,000) (561,700)
Other 196,581 (597,897)
Change in current assets and current
liabilities net of effects of
acquisitions and disposals:
Increase in accounts receivable (1,894,111) (5,552,176)
Increase in other current assets (265,434) (1,998,272)
Increase in accounts payable 3,462,283 757,575 Increase in accrued payroll,
accrued interest and other
current liabilities 513,667 582,050
Net cash provided by operating activities 16,959,599 5,567,995
Cash flows from investing activities:
Payments received on notes receivable 392,500 1,300,000
Capital expenditures (3,663,626) (1,471,367)
Cash paid for acquisitions (33,338,344) (3,233,812)
Purchase of intangible assets (15,182,893) (6,243,109)
Net proceeds from the sale of assets 1,919,189
Loans originated and other (4,789,713) (3,652,440)
Net cash used by investing activities (56,582,076) (11,381,539)
Cash flows from financing activities:
Proceeds from issuance of long-term debt 33,500,000
Proceeds from issuance of common stock 254,155 524,559
Repurchase of common stock (15,075,706)
Payment of restructuring expenses (375,000) (69,729)
Net cash provided by financing activities 18,303,449 454,830
Net decrease in cash and cash equivalents (21,319,028) (5,358,714)
Cash and cash equivalents at
beginning of period 26,974,838 28,617,599
Cash and cash equivalents at end of period $ 5,655,810 $23,258,885
The accompanying notes are an integral part
of the condensed consolidated financial statements.
JACOR COMMUNICATIONS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. FINANCIAL STATEMENTS
The financial statements included herein have been prepared
by the Company, without audit, pursuant to the rules and
regulations of the Securities and Exchange Commission.
Although certain information and footnote disclosures
normally included in financial statements prepared in
accordance with generally accepted accounting principles
have been condensed or omitted pursuant to such rules and
regulations, the Company believes that the disclosures are
adequate to make the information presented not misleading
and reflect all adjustments (consisting only of normal
recurring adjustments) which are necessary for a fair
presentation of results of operations for such periods.
Results for interim periods may not be indicative of results
for the full year. It is suggested that these financial
statements be read in conjunction with the consolidated
financial statements for the year ended December 31, 1994
and the notes thereto.
2. PER SHARE DATA
Income per share for the nine months and three months
ended September 30, 1995 and 1994 is based on the weighted
average number of common shares outstanding and gives
effect to both dilutive stock options and dilutive stock
purchase warrants during the periods. Fully diluted
earnings per share is not presented since it approximates
primary earnings per share.
3. ACQUISITION OF LICENSE
In September, 1995, a subsidiary of the Company exercised
its purchase option to acquire ownership of the license of
radio station KECR(FM) in San Diego, California for
approximately $13,875,000 in cash. The license transfer
is subject to FCC approval. Pending approval of the
license transfer, the Company's subsidiary has entered
into a Local Marketing Agreement which began September 23,
1995, and will expire upon approval of the license
transfer.
JACOR COMMUNICATIONS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
4. ACQUISITION OF RADIO STATIONS
In August 1995, a subsidiary of the Company acquired the
business and certain operating assets of radio stations
WJBT(FM) and WZAZ(AM) in Jacksonville, Florida for
approximately $3,750,000 in cash.
In August 1995, a subsidiary of the Company acquired the
business and certain operating assets of radio station
WSOL(FM) (formerly WHJX) in Jacksonville, Florida for
approximately $4,500,000 in cash.
In August 1995, a subsidiary of the Company acquired the
business and certain operating assets of radio stations
WDUV(FM) and WBRD(AM) in Tampa, Florida for approximately
$14,000,000 in cash.
5. COMMON STOCK BUY BACK
During the nine months ended September 30, 1995, the
Company purchased and retired 1,090,300 shares of its own
Common Stock at a cost of $15,075,706. Subsequent to
September 30, 1995, the Company purchased and retired an
additional 425,000 shares of its own Common Stock at a
cost of $6,618,125.
The Company's Board of Directors has authorized the
Company to purchase up to an additional 1,000,000 shares
of its own Common Stock from time to time in open-market
or negotiated transactions.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
The Company began 1995 with no outstanding debt and $27.0 million
in cash and cash equivalents. During the first nine months of
1995 the Company used $53.3 million in cash for acquisitions of
radio stations and licenses and for loans and $15.1 million in
cash to purchase shares of its own Common Stock. These funds
came from cash on hand together with cash provided from operating
activities and draws under the Company's Credit Agreement
aggregating $33.5 million.
The Company's Credit Agreement provides for a senior secured
reducing revolving credit facility with a commitment of $45
million ($40.4 million at September 30, 1995 - see following
paragraph) that expires on December 31, 2000 (the "Revolver") and
a senior secured acquisition facility with a commitment of $55
million (the "Acquisition Facility") that expires on September
30, 1996. The Credit Agreement contains restrictive covenants,
and the indebtedness thereunder is collateralized by liens on
substantially all of the assets of the Company and its operating
subsidiaries and by a pledge of the operating subsidiaries'
stock. The indebtedness under the Credit Agreement is guaranteed
by those subsidiaries. Both facilities may be used for
acquisitions permitted under conditions set forth in the Credit
Agreement. Interest under the Credit Agreement is payable, at
the option of the Company, at alternative rates equal to the
Eurodollar rate plus 1.25% to 2.25% or the base rate announced by
Banque Paribas plus 0.25% to 1.25%.
The Credit Agreement requires that the commitment under the
Revolver be reduced in the quarter commencing January 1, 1994 and
continuing quarterly thereafter (reduced by $4.6 million as of
September 30, 1995). After the Acquisition Facility commitment
terminates on September 30, 1996, the Credit Agreement requires
17 equal quarterly amortization payments. The Credit Agreement
further requires that, with certain exceptions, the Company
prepay the loans and reduce the commitments under the Credit
Agreement with excess cash flow and the net proceeds from certain
sales of assets and capital stock.
The Company entered into an interest rate protection agreement in
March 1993 on a notional amount of $22.5 million for a three-year
term for a cost of $0.1 million. This agreement provided
protection against the rise in the three-month LIBOR interest
rate beyond a level of 7.25%. The current three-month LIBOR
interest rate is 5.88%.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS, Continued
LIQUIDITY AND CAPITAL RESOURCES, Continued
During the nine months ended September 30, 1995, the Company,
through its subsidiaries, made capital expenditures of
approximately $3.7 million. The Company expects to make
acquisitions, loans and capital expenditures in the range of $10
million to $12 million for the remainder of the year ended
December 31, 1995.
Management believes that its existing cash balance, cash
generated from operations and the availability of borrowings
under the Credit Agreement will be sufficient to meet its
liquidity and capital needs for the foreseeable future, under
existing market conditions.
CASH FLOW
Cash flows provided by operating activities, inclusive of working
capital were $17.0 million and $5.6 million for the first nine
months of 1995 and 1994, respectively. The net cash provided of
$17.0 million for the first nine months of 1995 results primarily
from the add back of depreciation and amortization expense to net
income for the period. The net cash provided of $5.6 million for
the first nine months of 1994 results primarily from the net
income of $4.8 million generated during that period. Cash flows
used by investing activities were ($56.6) million and ($11.4)
million for the first nine months of 1995 and 1994, respectively.
The net cash used by investing activities for both nine-month
periods results from payments made for acquisitions (including
purchase of intangible assets), loans and capital expenditures.
The 1994 amount is net of $3.2 million of payments received on
notes and from the sale of assets. Cash flows provided by
financing activities were $18.3 million for the first nine months
of 1995 principally due to $33.5 million in borrowings under the
Company's Credit Agreement net of the $15.1 million repurchase of
the Company's common stock. Cash flows provided by financing
activities were $0.5 million for the comparable 1994 period due
primarily to the issuance of common stock.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS, Continued
RESULTS OF OPERATIONS
THE NINE MONTHS ENDED SEPTEMBER 30, 1995 COMPARED TO THE NINE
MONTHS ENDED SEPTEMBER 30, 1994
Broadcast revenue for the first nine months of 1995 was $97.6
million, an increase of $10.1 million or 11.5% from $87.5 million
during the first six months of 1994. This increase resulted from
an increase in advertising rates in both local and national
advertising and from the revenue generated at those properties
owned or operated during the 1995 first nine months but not
during the comparable 1994 period. On a "same station" basis -
reflecting results from stations operated in the first nine
months of both 1995 and 1994 - broadcast revenue for the 1995
period was $92.6 million, an increase of $6.5 million or 7.5%
from $86.1 million for the 1994 period.
Agency commissions for the first nine months of 1995 were $10.5
million, an increase of $1.2 million or 13.2% from $9.3 million
during the first nine months of 1994 due to the increase in
broadcast revenue.
Broadcast operating expenses for the first nine months of 1995
were $65.2 million, an increase of $5.3 million or 8.9% from
$59.9 million during the first nine months of 1994. These
expenses increased as a result of expenses incurred at those
properties owned or operated during the first nine months of 1995
but not during the comparable 1994 period and, to a lesser
extent, increased selling and other payroll costs and programming
costs. On a "same station" basis, broadcast operating expenses
for the 1995 period were $61.2 million, an increase of $3.3
million or 5.7% from $57.9 million for the 1994 period.
Station operating income excluding depreciation and amortization
for the nine months ended September 30, 1995 was $21.9 million,
an increase of $3.5 million or 19.4% from the $18.4 million for
the nine months ended September 30, 1994. The strike-shortened
Major League Baseball seasons in 1995 and 1994 and the loss of
the Atlanta Braves broadcast rights after the 1994 season impacts
the comparability of broadcast revenue and operating expenses for
the nine-month period. However, this did not have a material
impact on station operating income. On a "same station" basis,
station operating income excluding depreciation and amortization
for the 1995 period was $21.5 million, an increase of $2.4
million or 12.4% from $19.1 million for the 1994 period.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS, Continued
RESULTS OF OPERATIONS
THE NINE MONTHS ENDED SEPTEMBER 30, 1995 COMPARED TO THE NINE
MONTHS ENDED SEPTEMBER 30, 1994, Continued
Depreciation and amortization for the first nine months of 1995
and 1994 was $6.8 million and $7.2 million, respectively.
Operating income for the first nine months of 1995 was $12.6
million, an increase of $4.0 million or 45.9% from an operating
income of $8.6 million during the first nine months of 1994.
Interest expense for the first nine months of 1995 and 1994 was
$0.6 million and $0.4 million, respectively.
Net income for the first nine months of 1995 was $7.8 million,
compared to net income of $4.8 million for the first nine months
of 1994. The 1995 period includes $5.3 million of income tax
expense while the 1994 period includes $4.2 million of income tax
expense.
THE THREE MONTHS ENDED SEPTEMBER 30, 1995 COMPARED TO THE THREE
MONTHS ENDED SEPTEMBER 30, 1994
Broadcast revenue for the third quarter of 1995 was $36.1
million, an increase of $4.2 million or 13.2% from $31.9 million
during the third quarter of 1994. This increase resulted from an
increase in advertising rates in both local and national
advertising and from the revenue generated at those properties
owned or operated during the 1995 third quarter but not during
the comparable 1994 period. On a "same station" basis -
reflecting results from stations operated in the third quarter of
both 1995 and 1994 - broadcast revenue for the 1995 and 1994
periods was $33.8 million and $31.0 million, respectively.
Agency commissions for the third quarter of 1995 were $3.8
million, an increase of $0.4 million or 12.0% from $3.4 million
during the third quarter of 1994 due to the increase in broadcast
revenue.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS, Continued
RESULTS OF OPERATIONS
THE THREE MONTHS ENDED SEPTEMBER 30, 1995 COMPARED TO THE THREE
MONTHS ENDED SEPTEMBER 30, 1994, Continued
Broadcast operating expenses for the third quarter of 1995 were
$23.1 million, an increase of $2.6 million, or 12.8% from $20.5
million during the third quarter of 1994. These expenses
increased as a result of expenses incurred at those properties
owned or operated during the 1995 third quarter but not during
the comparable 1994 period and, to a lesser extent, increased
selling and other payroll costs and programming costs. However,
this increase was reduced by a decrease in broadcast rights' fees
for professional baseball due to the loss of the Atlanta Braves
broadcast rights after the 1994 season. On a "same station"
basis, broadcast operating expenses for the 1995 period were
$21.4 million, an increase of $1.8 million or 9.5% from $19.6
million for the 1994 period.
Station operating income excluding depreciation and amortization
for the three months ended September 30, 1995 was $9.2 million,
an increase of $1.2 million or 14.6% from the $8.0 million for
the three months ended September 30, 1994. The strike-shortened
Major League Baseball season in 1994 and the loss of the Atlanta
Braves broadcast rights after the 1994 season impacts the
comparability of broadcast revenue and operating expenses for the
third quarter. On a "same station" basis, station operating
income excluding depreciation and amortization for the 1995
period was $8.8 million, an increase of $0.7 million or 8.2% from
$8.1 million for the 1994 period.
Depreciation and amortization for the third quarter of 1995 and
1994 was $2.4 million and $2.5 million, respectively.
Operating income for the third quarter of 1995 was $5.9 million,
an increase of $1.1 million or 23.3% from $4.8 million during the
third quarter of 1994.
Interest expense for the second quarter of 1995 and 1994 was $0.4
million and $0.1 million, respectively.
Net income for the third quarter of 1995 was $3.5 million,
compared to net income of $2.6 million reported by the Company
for the third quarter of 1994. The 1995 period includes $2.4
million of income tax expense while the 1994 period includes $2.3
million of income tax expense.
JACOR COMMUNICATIONS, INC. AND SUBSIDIARIES
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits.
Number Description Page
11 Statement re computation of consolidated
income per common share 15
27 Financial Data Schedule 16
99 Press Release dated October 31, 1995 17
(b) Reports on Form 8-K
None
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, Registrant has duly caused this Report to be signed on its
behalf by the undersigned, thereunto duly authorized.
JACOR COMMUNICATIONS, INC.
(Registrant)
DATED: November 13, 1995 BY /s/ R. Christopher Weber
R. Christopher Weber,
Senior Vice President and
Chief Financial Officer
JACOR COMMUNICATIONS, INC. AND SUBSIDIARIES
EXHIBIT 11
Computation of Consolidated Income Per Common Share
for the three months and nine months ended September 30, 1995 and 1994
Three Months Ended Nine Months Ended
September 30 September 30
1995 1994 1995 1994
Income for primary and
fully diluted computation:
Income $3,488,305 $2,629,384 $7,768,180 $4,783,200
Primary (1):
Weighted average common shares
and all other dilutive
securities:
Common stock 18,774,420 19,589,120 19,167,343 19,566,685
Stock purchase warrants 1,045,958 779,639 889,537 822,893
Stock options 888,394 744,600 779,178 764,953
Contingently issuable
common shares 300,000 300,000 300,000 300,000
21,008,772 21,413,359 21,136,058 21,454,531
Primary income per
common share $ .17 $ .12 $ .37 $ .22
<FN>
NOTES:
1. Fully diluted earnings per share is not presented since it
approximates primary income per share.
EXHIBIT 99
JACOR REPORTS CONTINUED IMPROVEMENTS IN BROADCAST CASH FLOW;
BOARD AUTHORIZES ADDITIONAL SHARE REPURCHASE
CINCINNATI, OCTOBER 31 - Jacor Communications, Inc. (NASDAQ: JCOR), owner and
operator of radio stations in seven U.S. markets, today reported a 19-percent
increase in broadcast cash flow during the nine months ended September 30,
1995, and a 15-percent increase in broadcast cash flow for the third quarter of
1995.
Jacor's broadcast cash flow for the 1995-nine month period rose 19 percent to
$21.9 million from $18.4 million in the same nine-month period of 1994. Third
quarter broadcast cash flow rose 15 percent to $9.2 million in 1995 from $8.0
million in the same quarter of 1994. Net revenues for the nine-month period
rose 11 percent to $87.2 million from $78.3 million in the 1994 period. Third
quarter 1995 net revenues rose 13 percent to $32.3 million from $28.5 million
in the 1994 period. The strike-shortened Major League Baseball seasons in 1994
and 1995 and the loss of the Atlanta Braves broadcast rights after the 1994
season impacted the comparability of broadcast revenue and broadcast cash flow
for the nine-month period and third quarter.
On a "same station" basis - reflecting results from stations operated in the
first nine months of both 1995 and 1994 - Jacor's broadcast cash flow rose 12
percent to $21.5 million for the first nine months of 1995 from $19.1 million
in the same period last year. Broadcast cash flow on the "same station" basis
for the third quarter of 1995 rose 8 percent to $8.8 million from $8.1 million
for the third quarter of 1994. On a "same station" basis, adjusted for the
1994 Atlanta Braves broadcast rights, Jacor's 1995 year-to-date and third
quarter broadcast cash flow rose 19 percent and 12 percent, respectively, over
those of the comparable 1994 periods.
The Company reported net income of $7.8 million or 37 cents per share, during
the first nine months of 1995. Results for the same period last year reflected
net income of $4.8 million, or 22 cents per share. Net income for the third
quarter of 1995 was $3.5 million or 17 cents per share, an increase of 33
percent from the net income of $2.6 million or 12 cents per share reported by
the Company for the third quarter of 1994.
The Company also announced that it has completed its previously authorized
share repurchase program. The Company purchased and retired 1,515,300 shares
of its common stock at a cost of $21,693,832 or an average price of $14.32 per
share. Further, its Board of Directors has authorized the Company to purchase
up to 1,000,000 additional shares of its own common stock from time to time in
open-market or negotiated transactions.
Jacor Communications, Inc., headquartered in Cincinnati, is the nation's eighth
largest radio group. The Company plans to pursue growth through continued
acquisitions of complementary stations in its existing markets, and radio
groups or individual stations with significant presence in attractive markets.
CONTACT: Chris Weber
513/621-1300
or
Kirk Brewer
312/466-4096
JACOR COMMUNICATIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the three months and nine months ended September 30, 1995 and 1994
(UNAUDITED)
Three Months Ended Nine Months Ended
September 30, September 30,
1995 1994 1995 1994
Broadcast revenue $ 36,115,286 $31,912,183 $97,648,317 $87,543,871
Less agency commissions 3,821,724 3,413,707 10,472,272 9,253,147
Net revenue 32,293,562 28,498,476 87,176,045 78,290,724
Broadcast operating expenses 23,127,964 20,496,794 65,241,279 59,919,688
Broadcast cash flow (1) 9,165,598 8,001,682 21,934,766 18,371,036
Depreciation and amortization 2,442,475 2,519,255 6,782,582 7,235,023
Corporate general and
administrative expenses 823,651 698,212 2,564,180 2,506,449
Operating income 5,899,472 4,784,215 12,588,004 8,629,564
Interest expense (383,864) (137,591) (593,070) (428,065)
Other income, net 347,697 286,660 1,052,246 797,601
Income before
income taxes 5,863,305 4,933,284 13,047,180 8,999,100
Income tax expense (2,375,000) (2,303,900) (5,279,000) (4,215,900)
Net income $ 3,488,305 $ 2,629,384 $ 7,768,180 $ 4,783,200
Income per common share $ 0.17 $ 0.12 $ 0.37 $ 0.22
Number of common shares used
in per share computations 21,008,772 21,413,359 21,136,058 21,454,531
<FN>
(1) Operating income before depreciation and amortization and corporate
general and administrative expenses.