EXHIBIT 99.1
[LIN TV CORP. 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 SECOND-QUARTER RESULTS
PROVIDENCE, RHODE ISLAND, July 29, 2003 - LIN TV Corp. (NYSE: TVL), the parent
of LIN Television Corporation, today reported financial results for the quarter
ended June 30, 2003. The reported results reflect the acquisition of Sunrise
Television Corp. in May 2002 and the sale of two Texas television stations,
KRBC-TV and KACB-TV, in June 2003. These two stations are reported as
discontinued operations for all periods.
Reported Results
LIN TV's net loss for the second quarter of 2003 was $11.2 million, or $0.23 per
share, compared to a net loss of $9.4 million, or $0.23 per share, during the
second quarter of 2002. During the second quarter of 2003, the Company recorded
a charge of $23.6 million related to costs associated with the early repayment
of $300.0 million principal amount of senior subordinated notes, including the
write-off of unamortized financing fees and discounts on the notes. The notes
were called on May 12, 2003 and redeemed on June 16, 2003.
Second-quarter 2003 net revenues were $91.1 million, an increase of 2.1% over
net revenues of $89.2 million in the second quarter of 2002. Station operating
income in the second quarter of 2003 (net revenue less direct operating costs at
the television stations, including program amortization expense) was $37.2
million, a decline of 6.5% from $39.8 million in the second quarter of 2002.
Operating income decreased to $24.8 million in the second quarter of 2003 from
$30.5 million in the comparable 2002 period.
For the six months ended June 30, 2003, the Company's net loss was to $52.1
million, or $1.04 per share, compared to $65.8 million, or $1.95 per share,
during the first half of 2002. Net revenues during the first six months of the
year increased 9.7% to $166.3 million from $151.7 million for the first six
months ended June 30, 2002, and station operating income decreased 1.2% to $61.0
million from $61.8 million for the same periods.
Capital expenditures were $4.1 million for the second quarter of 2003 and $10.2
million year-to-date. The Company received $1.6 million in equity investment
distributions in the second
quarter of 2003 compared to $611,000 in the second quarter of 2002. Year-to-date
distributions from equity investments total $3.3 million in 2003.
Adjusted Results
LIN TV also reported adjusted results to reflect recent acquisitions and
dispositions as if they had occurred on January 1, 2002. A reconciliation of
GAAP to adjusted results is included in the attached exhibits.
Second-quarter 2003 adjusted net revenue of $91.1 million decreased 2.8% from
adjusted net revenue of $93.7 million in the second quarter of 2002. Excluding
political advertising revenue of $1.7 million in 2002 and approximately $536,000
in 2003, net revenue for the second quarter would have declined 1.6%. Adjusted
station operating income of $37.2 million for the quarter decreased 10.5% from
adjusted station operating income of $41.6 million for the second quarter of
2002.
Adjusted net revenues decreased 1.4% to $166.3 million for the six months ended
June 30, 2003, from $168.7 million for the six months ended June 30, 2002, and
adjusted station operating income decreased 8.3% to $61.0 million from $66.6
million. Excluding political advertising revenue of $854,000 in 2003 and $2.5
million in 2002, net revenue would have decreased 0.5% in the first six months.
CEO Comment
Gary R. Chapman, LIN TV's Chairman, President and Chief Executive Officer, said:
"While the advertising environment has not fully recovered from the war in Iraq,
demand was slightly stronger than we originally anticipated, and we performed
well in comparison with the second quarter of 2002, which included $1.7 million
in net political revenue.
"During the quarter, we further improved the Company's balance sheet. By issuing
$200.0 million of senior subordinated notes at a 6 1/2% annual interest rate and
$125.0 million of exchangeable senior subordinated debentures at a 2.50% regular
annual interest rate, we retired $300.0 million of senior subordinated notes at
8 3/8% issued by LIN Television Corporation. These new financings will reduce
regular interest expense to approximately $11 million per quarter and enhance
liquidity from operations. We believe that our improved capital structure also
strengthens the Company's ability to pursue potential acquisitions," Mr. Chapman
concluded.
Balance Sheet
Total debt outstanding on June 30, 2003 was $734.1 million and cash and cash
equivalent balances were $21.6 million at quarter-end.
LIN TV had 50.0 million common shares outstanding as of June 30, 2003.
Guidance
LIN TV anticipates that third-quarter net revenue could decline in the range of
5%-10% compared to net revenue reported in the quarter ended September 30, 2002.
While third-quarter advertising time sales are currently pacing down in the
mid-single digits, the Company will have an unfavorable comparison due to
approximately $6.5 million in net political revenue that was recorded in the
third quarter of 2002, nearly half of which was booked in the month of
September. Between 4 to 6 points of the decline could be attributed to
non-returning political business.
Further, the Company believes that operating expenses, excluding depreciation
and amortization, will grow less than 3% in the third quarter and will decline
approximately 3% in the fourth quarter in comparison to the expenses in third
and fourth quarter of 2002, respectively. This is in line with the Company's
previous guidance as the Company begins to realize the benefits of clustering
and more normalized year-over-year expense comparisons for the Sunrise stations.
Recent Developments
The Company has announced that it intends to sell WEYI-TV, the NBC affiliate
serving Flint, Michigan. The sale process is continuing; however, the Company
may not be able to consummate this sale on acceptable terms. The sale of the
stations in Abilene (KRBC-TV) and San Angelo (KACB-TV), Texas was completed on
June 13, 2003.
About LIN TV
LIN TV operates 24 television stations in 14 markets, two of which are LMAs.
LIN's stations are:
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MARKET STATION DMA CHANNEL NETWORK
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Indianapolis WISH-TV 25 8 CBS
WIIH-CA Univision
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New Haven WTNH-TV 27 8 ABC
WCTX-TV 59 UPN
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Grand Rapids WOOD-TV 38 8 NBC
WOTV-TV 41 ABC
WXSP-CA LPs UPN
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Norfolk WAVY-TV 41 10 NBC
WVBT-TV 43 Fox
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Buffalo WIVB-TV 44 4 CBS
WNLO-TV 23 UPN
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Providence WPRI-TV 48 12 CBS
WNAC-TV 64 Fox (LMA)
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Austin KXAN-TV 54 36 NBC
KNVA-TV 54 WB (LMA)
KBVO-CA LP's Telefutura
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Dayton WDTN-TV 58 2 ABC
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Flint WEYI-TV 64 25 NBC
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Toledo WUPW-TV 68 36 Fox
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Fort Wayne WANE-TV 104 15 CBS
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Springfield WWLP-TV 106 22 NBC
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Lafayette WLFI-TV 189 18 CBS
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San Juan WAPA-TV NA 4 Independent
WJPX-TV 24 Independent
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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, July 29, 2003, at 10:00 am ET. To participate in the call,
please call (800) 289-0493 (U.S. callers) or (913) 981-5510 (international
callers) approximately 10 minutes prior to the scheduled start of the call and
reference 246042. 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 Tuesday, August 5, 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 246042. The replay can also
be accessed at the Company's website from 1:00 pm today until midnight on August
5, 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, statements made under the heading "Guidance" above 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, 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 JUNE 30, SIX MONTHS ENDED JUNE 30,
--------------------------- --------------------------
2003 2002 2003 2002
------------ ------------ ------------ -----------
Net revenues $ 91,078 $ 89,168 $ 166,332 $ 151,691
Operating costs and expenses:
Direct operating 25,260 23,347 49,990 43,304
Selling, general and administrative 23,187 20,590 44,600 36,454
Amortization of program rights 5,431 5,452 10,705 10,134
----------- ----------- ----------- -----------
Station operating income 37,200 39,779 61,037 61,799
Corporate 4,182 2,290 8,102 4,418
Restructuring charge 102 - 102 -
Depreciation and amortization of intangible assets 8,087 7,004 16,241 12,726
----------- ----------- ----------- -----------
Operating income 24,829 30,485 36,592 44,655
----------- ----------- ----------- -----------
Other (income) expense:
Interest expense 15,233 22,675 35,754 48,072
Investment income (370) (459) (750) (1,522)
Share of income in equity investments (1,689) (2,639) (1,404) (4,054)
Loss on disposition of property and equipment 968 - 948 -
Gain on derivative instruments (4,760) (1,038) (4,760) (2,182)
Gain on redemption of investment in Southwest Sports Group - (3,819) - (3,819)
Fee on termination of Hicks Muse agreements - 16,000 - 16,000
Loss on impairment of investment 250 2,750 250 2,750
Loss on extinguishment of debt 23,580 2,457 53,105 2,457
Other, net (436) (50) (365) (125)
----------- ----------- ----------- -----------
Total other expense, net 32,776 35,877 82,778 57,577
Loss from continuing operations before provision for income taxes
and cumulative effect of change in accounting principle (7,947) (5,392) (46,186) (12,922)
Provision for income taxes 2,646 4,258 5,274 22,448
----------- ----------- ----------- -----------
Loss from continuing operations before cumulative
effective of change in accounting principle (10,593) (9,650) (51,460) (35,370)
Discontinued operations:
Income from discontinued operations, net of tax provision of $122 - (227) - (227)
Loss on sale of discontinued operations, net of tax provision of $0 652 - 652 -
Cumulative effect of change in accounting principle,
net of tax benefit of $16,525 - - - 30,689
----------- ----------- ----------- -----------
Net loss $ (11,245) $ (9,423) $ (52,112) $ (65,832)
=========== =========== =========== ===========
BASIC AND DILUTED LOSS PER COMMON SHARE:
Loss from continuing operations before cumulative
effect of change in accounting principle $ (0.21) $ (0.23) $ (1.03) $ (1.05)
Income from discontinued operations, net of tax (0.01) 0.01 (0.01) 0.01
Cumulative effect of change in accounting principle, net of tax - - - (0.91)
Net loss (0.23) (0.23) (1.04) (1.95)
Weighted - average number of common shares
outstanding used in calculating basic and diluted 49,942 41,680 49,923 33,684
SUPPLEMENTAL FINANCIAL DATA:
Debt outstanding $ 734,058 $ 898,676 $ 734,058 $ 898,676
Cash and cash equivalents 21,625 146,885 21,625 146,885
Capital expenditures 4,091 13,191 10,187 18,392
Program rights payments 5,848 6,751 11,242 11,493
Capital distributions from equity investments 1,630 611 3,260 611
Cash taxes 1,466 316 4,117 353
Non-cash items 329 (210) 718 (435)
Interest Expense Components:
Cash interest expense $ 13,286 $ 10,975 $ 25,824 $ 24,565
Amortization of discount and deferred financing fees 1,947 11,700 9,930 23,507
----------- ----------- ----------- -----------
Total interest expense $ 15,233 $ 22,675 $ 35,754 $ 48,072
----------- ----------- ----------- -----------
LIN TV CORP.
Unaudited Adjusted Condensed Consolidated Statements of Operations
(IN THOUSANDS)
THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
--------------------------- -------------------------
2003 2002 2003 2002
---------- ----------- --------- ----------
Net revenues $ 91,078 $ 93,740 $ 166,332 $ 168,717
Operating costs and expenses:
Direct operating 25,260 24,515 49,990 48,407
Selling, general and administrative 23,187 21,658 44,600 41,445
Amortization of program rights 5,431 6,003 10,705 12,276
---------- ---------- --------- ---------
Station operating income 37,200 41,564 61,037 66,589
Corporate 4,182 2,236 8,102 4,051
Restructuring charge 102 - 102 -
Depreciation and amortization of intangible assets 8,087 7,523 16,241 14,861
---------- ---------- --------- ---------
Operating income 24,829 31,805 36,592 47,677
---------- ---------- --------- ---------
SUPPLEMENTAL FINANCIAL DATA:
Program rights payments 5,848 6,751 11,272 13,637
Capital distributions from equity investments 1,630 611 3,260 611
Non-cash items 329 (210) 718 (435)
Three months ended June 30, Six months ended June 30,
--------------------------- -------------------------
2003 2002 2003 2002
--------- -------- --------- --------
CALCULATION OF OPERATING INCOME:
Operating income (actual) $24,829 $30,485 $36,592 $44,655
Adjustments to net revenues and operating expenses:
Sunrise Merger (excluding North Dakota and Texas stations) - 1,266 - 2,655
HMTF Fees - 54 - 367
------- ------- ------- -------
Operating income (adjusted) 24,829 31,805 36,592 47,677
------- ------- ------- -------
NOTE: LIN TV reports adjusted results to reflect the acquisitions of the
Sunrise television stations on May 2, 2002 and the disposition of
KRBC-TV and KACB-TV on June 13, 2003 as if it had occurred on January
1, 2002.