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[LIN LOGO]
Contacts: Investors: Media:
Deborah R. Jacobson Mark Semer
LIN TV Corp. Kekst and Company
(401) 457-9403 (212) 521-4802
LIN TV CORP. REPORTS 2003 FIRST-QUARTER RESULTS
PROVIDENCE, RHODE ISLAND, April 29, 2003 - LIN TV Corp. (NYSE: TVL), the parent
of LIN Television Corporation, today reported financial results for the quarter
ended March 31, 2003. The reported results reflect the acquisition of Sunrise
Television Corp. on May 2, 2002.
Reported Results
The net loss for the first quarter of 2003 was $40.9 million, or $0.82 per
share, compared to a net loss of $56.4 million, or $2.20 per share, during the
first quarter of 2002. During the first quarter of 2003 the Company recorded a
charge of $29.5 million for costs associated with the early repayment of its
$300 million face amount of senior discount notes issued in 1998 and to
write-off unamortized fees and discounts on the notes. The notes were called on
February 7, 2003 and redeemed on March 10, 2003.
First-quarter 2003 net revenues were $75.3 million, an increase of 20.4% over
net revenues of $62.5 million in the first quarter of 2002. Station operating
income, a new line item on the Company's income statement which represents net
revenue less direct operating costs at the television stations (including
program amortization expense), before corporate overhead expense and
depreciation and amortization expense, was $23.8 million, an increase of 8.3%
from $22.0 million in the first quarter of 2002. The increase was due to
additional television stations under management following the Sunrise Television
Corp. acquisition. Operating income decreased to $11.8 million in the first
quarter of 2003 from $14.2 million in the comparable 2002 period.
Capital expenditures were $6.1 million for the first quarter of 2003 compared to
$5.2 million in the comparable quarter for 2002, and the Company received $1.6
million in equity investment distributions in the first quarter of 2003 compared
to no distributions from equity investments in the first quarter of 2002.
Adjusted Results
LIN TV also reported adjusted results to reflect the acquisition of Sunrise on
May 2, 2002, as if it had occurred on January 1, 2002. The adjusted presentation
excludes operating results of the
Sunrise North Dakota stations, which were sold in August 2002, as well as the
operating results of KRBC-TV and KACB-TV in Abilene and San Angelo, Texas, the
sale of which is pending approval by the Federal Communications Commission. The
adjusted results also reflect the impact of transactions associated with LIN
TV's May 2002 IPO and the subsequent redemption of the LIN Holdings senior
discount notes, including debt repayment upon the IPO and subsequent borrowing
to redeem the discount notes, and adjustment of related cash interest expense,
as if the debt had been repaid or borrowed on January 1, 2002. The adjustments
also include elimination of the preferred dividend the company received as a
result of the liquidation of its interest in Southwest Sports Group, and the
elimination of management fees paid to Hicks, Muse, Tate & Furst during 2002. A
reconciliation of GAAP to adjusted results is included in the attached exhibits.
Adjusted net revenue for the first quarter of 2003 was $75.3 million, consistent
with the 2002 first quarter. Adjusted station operating income for the quarter
was $23.8 million, a decrease of 4.7% from adjusted station operating income of
$25.0 million for the first quarter of 2002. Adjusted operating income was $11.8
million compared to $15.9 million for the first quarter of 2002.
CEO Comment
Gary R. Chapman, LIN TV's Chairman, President and Chief Executive Officer, said:
"I am proud that LIN TV's stations generated first-quarter revenue in line with
last year's first quarter despite the difficult circumstances we began to
experience late in the period, particularly as a result of the outbreak of
hostilities in Iraq. The advertising we lost was unavoidable, but our stations
demonstrated - as they have in the past - that they are prepared to withstand an
adverse environment.
"There were several other events in the quarter that we expect to have long-term
benefits for LIN TV. We re-launched WNLO-TV in Buffalo as a UPN affiliate and
launched WIIH, a class A station in Indianapolis, as the Univision affiliate for
that market. We also continued the company's recapitalization that began with
our IPO by retiring two debt issues of our LIN Holdings Corp. subsidiary. This
effort meaningfully reduced interest expense and enhanced liquidity from
operations. While we incurred increased costs in the first quarter, these
reflect expenditures intended to strengthen the news operations at several
stations and increased health insurance costs that face the industry today," Mr.
Chapman concluded.
Balance Sheet
Total debt outstanding on March 31, 2003 was $754.0 million and cash and cash
equivalent balances were $20.2 million at quarter-end. The Company's senior
secured credit agreement contains a covenant obligating the Company to have net
consolidated leverage, as defined in the credit agreement, of not more than
6.25X. As of March 31, 2003, the Company's net consolidated leverage under the
Agreement was approximately 4.9X.
LIN TV had 49.9 million common shares outstanding as of March 31, 2003.
Guidance
On March 26, 2003, the Company announced that it was unable to provide guidance
for future periods, due to volatility in the market following the onset of the
war in Iraq. While advertising time sales for the month of April were slightly
ahead in 2003 compared to 2002 on an absolute basis, the Company continues to be
unable to provide guidance for the second quarter or future reporting periods
until it is better able to estimate the impact of current events on the
Company's results.
Recent Developments
The Company has previously announced that it intends to seek the sale of
WEYI-TV, the Company's NBC affiliate serving Flint, Michigan. The sales process
is continuing; however, the Company may not be able to consummate this sale on
acceptable terms. The previously announced sale of the stations in Abilene
(KRBC-TV) and San Angelo (KACB-TV), Texas is proceeding according to plan and is
expected to be completed during the second quarter following FCC approval. As
such, the operating results for KRBC and KACB have been included as discontinued
operations.
About LIN TV
LIN TV operates 24 television stations in 14 markets, two of which are LMAs.
LIN's stations are:
MARKET STATION DMA CHANNEL NETWORK
- ------ ------- --- ------- -------
Indianapolis WISH-TV 25 8 CBS
WIIH-CA Univision
New Haven WTNH-TV 27 8 ABC
WCTX-TV 59 UPN
Grand Rapids WOOD-TV 38 8 NBC
WOTV-TV 41 ABC
WXSP-CA LPs UPN
Norfolk WAVY-TV 41 10 NBC
WVBT-TV 43 Fox
Buffalo WIVB-TV 44 4 CBS
WNLO-TV 23 UPN
Providence WPRI-TV 48 12 CBS
WNAC-TV 64 Fox (LMA)
Austin KXAN-TV 54 36 NBC
KNVA-TV 54 WB (LMA)
KBVO-CA LP's Telefutura
Dayton WDTN-TV 58 2 ABC
Flint WEYI-TV 64 25 NBC
Toledo WUPW-TV 68 36 Fox
Fort Wayne WANE-TV 104 15 CBS
Springfield WWLP-TV 106 22 NBC
Lafayette WLFI-TV 189 18 CBS
San Juan WAPA-TV NA 4 Independent
WJPX-TV 24 Independent
LIN TV also owns approximately 20% of KXAS-TV in Dallas, Texas and KNSD-TV in
San Diego, California through a joint venture with NBC, and is a 50% non-voting
investor in Banks
Broadcasting, Inc., which owns KWCV-TV in Wichita, Kansas and KNIN-TV in Boise,
Idaho. Finally, LIN is a one-third owner of WAND-TV, the ABC affiliate in
Decatur, Illinois, which it manages pursuant to a management services agreement.
Financial information and overviews of LIN TV's stations are available on the
Company's website at www.lintv.com.
Conference Call
LIN TV will hold a conference call to discuss its first quarter 2003 results
TODAY, Tuesday, April 29, 2003, at 10:00 am ET. To participate in the call,
please call (800) 289-0456 (U.S. callers) or (913) 981-5537 (international
callers) approximately 10 minutes prior to the scheduled start of the call and
reference 534584. The call can also be accessed via the investor relations
section of the company's website at www.lintv.com (listen-only).
If you are unable to participate in the live call, a taped replay will be
available from 1:00 pm ET today until Sunday, May 4, 2003 at midnight ET. The
replay can be accessed by dialing (888) 203-1112 (U.S. callers) or (719)
457-0820 (international callers), and using passcode 534584. The replay can also
be accessed at the company's website from 1:00 pm today until midnight on May 4,
2003.
Safe Harbor Statement
This press release may include statements that may constitute "forward-looking
statements," including estimates of future business prospects or financial
results and statements containing the words "believe," "estimate," "project,"
"expect," or similar expressions. Forward-looking statements inherently involve
risks and uncertainties, including, among other factors, general economic
conditions, demand for advertising, the war in Iraq or other geopolitical
events, competition for audience and programming, government regulations and new
technologies, that could cause actual results of LIN TV to differ materially
from the forward-looking statements. Factors that could contribute to such
differences include the risks detailed in the Company's registration statements
and periodic reports filed with the Securities and Exchange Commission. By
making these forward-looking statements, the Company undertakes no obligation to
update these statements for revision or changes after the date of this release.
# # #
LIN TV CORP.
Unaudited Condensed Consolidated Statements of Operations
(In thousands, except per share information)
THREE MONTHS
ENDED MARCH 31,
---------------------------
2003 2002
--------- -----------
Net revenues $ 75,254 $ 62,523
Operating costs and expenses:
Direct operating 24,730 19,957
Selling, general and administrative 21,413 15,864
Amortization of program rights 5,274 4,682
--------- -----------
Station operating income 23,837 22,020
Corporate 3,920 2,128
Depreciation and amortization of intangible assets 8,154 5,722
--------- -----------
Operating income 11,763 14,170
--------- -----------
Other (income) expense:
Interest expense 20,521 25,397
Investment income (380) (1,063)
Share of (income) loss in equity investments 289 (1,415)
Loss on extinguishment of debt 29,525 --
Other, net 47 (1,219)
--------- -----------
Total other expense, net 50,002 21,700
--------- -----------
Loss before provision for income taxes and cumulative
effect of change in accounting principle (38,239) (7,530)
Provision for income taxes 2,628 18,190
--------- -----------
Loss before cumulative effect of change in accounting principle (40,867) (25,720)
Cumulative effect of change in accounting principle
net of tax benefit of $16,525 -- 30,689
--------- -----------
Net loss $ (40,867) $ (56,409)
========= ===========
BASIC AND DILUTED LOSS PER COMMON SHARE:
Loss before extraordinary item and cumulative
effect of change in accounting principle $ (0.82) $ (1.00)
Cumulative effect of change in accounting principle, net of tax -- (1.19)
Net loss $ (0.82) $ (2.20)
Weighted - average number of common shares
outstanding used in calculating basic and diluted
loss per common share 49,904 25,688
SUPPLEMENTAL FINANCIAL DATA:
Debt outstanding $ 753,951 $ 1,076,160
Cash and cash equivalents 20,194 10,820
Capital expenditures 6,096 5,202
Program rights payments 5,395 4,739
Capital distributions from equity investments 1,630 --
Cash paid for taxes 2,651 37
Non-cash items 390 (169)
LIN TV CORP.
Unaudited Adjusted Condensed Consolidated Statements of Operations
(In thousands, except per share information)
THREE MONTHS
ENDED MARCH 31,
-----------------------
2003 2002
-------- --------
Net revenues $ 75,254 $ 74,977
Operating costs and expenses:
Direct operating 24,730 23,893
Selling, general and administrative 21,413 19,788
Amortization of program rights 5,274 6,272
-------- --------
Station operating income 23,837 25,024
Corporate 3,920 1,815
Depreciation and amortization of intangible assets 8,154 7,339
-------- --------
Operating income 11,763 15,870
-------- --------
Other (income) expense:
Interest expense 14,920 15,537
Investment income (380) (313)
Share of (income) loss in equity investments 289 (1,415)
Loss on extinguishment of debt 29,525 --
Other, net 47 (1,219)
-------- --------
Total other expense, net 44,401 12,590
-------- --------
Gain (loss) before provision for income taxes
and cumulative effect of change in accounting principle (32,638) 3,280
Provision for income taxes 4,589 21,974
-------- --------
Loss before cumulative effect of change in accounting principle (37,227) (18,694)
Cumulative effect of change in accounting principle
net of tax benefit of $16,525 -- 30,689
-------- --------
Net loss $(37,227) $(49,383)
======== ========
BASIC AND DILUTED LOSS PER COMMON SHARE:
Loss before extraordinary item and cumulative
effect of change in accounting principle $ (0.75) $ (0.41)
Cumulative effect of change in accounting principle, net of tax -- (0.68)
Net loss $ (0.75) $ (1.09)
Weighted - average number of common shares
outstanding used in calculating basic and diluted
loss per common share 49,904 45,238
SUPPLEMENTAL FINANCIAL DATA:
Program rights payments 5,395 6,886
Capital distributions from equity investments 1,630 --
Non-cash items 390 (169)
NOTE: LIN TV reports adjusted results to reflect the acquisitions of the
Sunrise television stations on May 2, 2002 as if it had occurred on
January 1, 2002. The adjusted presentation excludes operating results
of the Sunrise North Dakota stations, the sale of which was completed
on August 23, 2002 and excludes the operating results of KRBC-TV and
KACB-TV, the Texas stations, the sales of which are pending approval by
the Federal Communications Commission. The adjusted results also
reflect the impact of transactions associated with LIN TV's May 2002
IPO and the subsequent redemption of the LIN Holdings senior discount
notes, and adjustment of related cash interest expense, as if the debt
had been repaid or borrowed on January 1, 2002. The adjustments also
include elimination of the preferred dividend the company previously
received as a result of its interest in Southwest Sports Group, and the
elimination of management fees paid to Hicks, Muse, Tate & Furst during
2002.
LIN TV CORP.
Unaudited reconciliation between actual and
adjusted condensed consolidated statements of operations
(In thousands)
THREE MONTHS
ENDED MARCH 31,
-----------------------
2003 2002
-------- --------
CALCULATION OF OPERATING INCOME:
Operating Income (actual) $ 11,763 $ 14,170
Adjustments to net revenues and operating expenses:
Sunrise Merger (excluding North Dakota and Texas stations) -- 1,388
HMTF Fees -- 312
-------- --------
Operating income (adjusted) 11,763 15,870
-------- --------
CALCULATION OF NET LOSS:
Net loss (actual) $(40,867) $(56,409)
Adjustments to net loss:
Sunrise Merger (excluding North Dakota and Texas stations) -- 903
Interest Expense 3,640 6,410
HMTF Fees -- 202
Dividends on Southwest Sports preferred units -- (489)
-------- --------
Net loss (adjusted) (37,227) (49,383)
-------- --------