Triple Crown Media, Inc. Announces Third Quarter Results
LEXINGTON, Ky., May 11 /PRNewswire-FirstCall/ -- Triple Crown Media, Inc.
(Nasdaq: TCMI) announces that for the third quarter ended March 31, 2007, total
revenues were $36.3 million and loss from continuing operations was ($0.6)
million, or ($.11) per share compared to total revenues of $32.6 million and
$0.5 million of earnings from continuing operations, or $.09 per share in the
third quarter of last year. The quarter was adversely affected by higher
amortization expense due to the acquisition of Pinnacle Sports Productions, LLC
in September 2006, higher corporate and administrative expenses principally due
to stock compensation expense, higher interest expense due to higher interest
rates and debt levels and a loss on the disposal of equipment used in printing
services.
For the nine months ended March 31, 2007, total revenues were $113.5 million
and a loss from continuing operations was ($0.6) million, or ($.12) per share
compared to total revenues of $56.6 million and earnings from continuing
operations of $0.9 million, or $.18 per share for the comparable period in 2006.
The year to date was adversely affected by higher corporate and administrative
expenses and interest expense. Certain of the Company's expenses for periods
prior to the spin-off of the Company from Gray Television, Inc. (Gray) on
December 30, 2005, including corporate and administrative expenses resulted from
allocations of costs and expenses from Gray. Prior to the spin-off, Gray also
provided the capitalization for the Company, and as a result the Company had no
interest-bearing debt before December 30, 2005. Therefore, the reported
financial results for the nine months ended March 31, 2006 are not indicative of
the financial results of the Company as a separate, stand-alone entity.
"The revenues from our Newspaper Publishing, Collegiate Marketing and
Production Services, and Association Management Services businesses increased by
15%, 13%, and 11%, respectively, compared to the same quarter last year," said
Thomas J. Stultz, President and CEO of Triple Crown Media. "Earnings before
interest taxes depreciation and amortization ('EBITDA') increased by $0.3
million for our Newspaper Publishing business. EBITDA for our collegiate
properties increased by $0.1 million but this increase was more than offset by a
decrease of approximately ($0.3) million related to our printing services. We
disposed of equipment used in printing services to print certain sports
marketing related publications on March 22, 2007, as we have determined that we
can outsource these publications at a lower cost. EBITDA decreased by ($0.5)
million at the Company's Wireless business. Finally, non-cash expenses related
to amortization and gain or loss on sale of assets increased by $1.3 million
over the prior year quarter."
"On a pro-forma(1) basis, the revenues from our Newspaper Publishing,
Collegiate Marketing and Production Services, and Association Management
Services businesses increased by 20%, 22% and 15%, respectively, compared to the
same nine month period last year," said Mr. Stultz. "EBITDA for the nine months
ended March 31, 2007 increased by $2.8 million, $1.3 million and $1.0 million
for our Newspaper Publishing, Collegiate Marketing and Production Services, and
Association Management Services businesses over the same period last year,
respectively. The Wireless business' revenue declined 18% and had almost no
EBITDA for the nine month period ended March 31, 2007. Non-cash expenses related
to amortization and gain or loss on sale of assets increased $0.4 million for
the nine months ended March 31, 2007 versus the same period ending March 31,
2006."
Until December 30, 2005, the Company's Newspaper Publishing and Wireless
businesses were owned and operated by Gray Television, Inc., operating as
wholly-owned subsidiaries or divisions of Gray. Immediately following the
distribution of our common stock to Gray's common stockholders on December 30,
2005 in a transaction referred to as the Spin-off, the Company acquired its
Collegiate Marketing and Production Services business and Association Management
Services business pursuant to a merger with Bull Run Corporation.
Triple Crown Media owns and operates six daily newspapers and one weekly
newspaper in Georgia, and provides paging and other wireless services in non-
major metropolitan areas in Alabama, Florida and Georgia, where it also operates
14 retail locations. Triple Crown Media, through its subsidiary, Host
Communications, Inc., is engaged in the Collegiate Marketing and Production
Services business and Association Management Services business. The Collegiate
Marketing and Production Services business provides sports marketing and
production services to a number of collegiate conferences and universities and,
through a contract with CBS Sports, on behalf of the National Collegiate
Athletic Association. The Association Management Services business provides
various associations with services such as member communication, recruitment and
retention, conference planning, Internet web site management, marketing and
administration.
Non-GAAP Financial Measure
In addition to presenting financial results in accordance with generally
accepted accounting principles, or GAAP, this earnings release also presents
earnings before interest, taxes, depreciation and amortization ("EBITDA").
EBITDA is calculated by deducting operating expenses from operating income and
excluding amounts related to interest expense, income tax expense or benefit,
depreciation expense, amortization expense and any gain or loss on disposal of
assets. The Company believes this non-GAAP financial measure provides investors
with additional insight into the Company's ongoing operating performance. This
non-GAAP financial measure should be considered in conjunction with, but not as
a substitute for, the financial information presented in accordance with GAAP.
Conference Call Information:
Triple Crown Media, Inc. will host a conference call to discuss its third
quarter operating results on Tuesday, May 15, 2007 at 2:00 PM eastern time. The
live dial-in phone number is 1-800-638-4817 (participant passcode 30702601). The
call will be webcast live and will be available for replay at
www.triplecrownmedia.com. The taped replay of the conference call will be
available at 1-888-286-8010 (participant passcode 17751974) until July 15, 2007.
(1) Pro-Forma refers to the results of operations for the nine months ended
March 31, 2006, which includes the results of operations for our Collegiate
Marketing and Production Services and Association Management businesses for the
period during which they were owned by Bull Run Corporation prior to the Merger
on December 30, 2005.
TRIPLE CROWN MEDIA, INC.
COMBINED AND CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
Three Months Ended Nine Months Ended
March 31, March 31,
2006 2007 2006 2007
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Operating revenues:
Publishing $ 9,732 $ 11,236 $ 30,191 $ 36,236
Collegiate marketing
and production services 18,967 21,404 19,064 64,952
Association management
services 2,224 2,473 2,240 8,073
Wireless 1,725 1,138 5,102 4,198
32,648 36,251 56,597 113,459
Expenses:
Operating expenses
before depreciation,
amortization and loss
(gain) on disposal of
assets, net:
Publishing 7,082 8,308 22,407 25,678
Collegiate marketing
and production
services 15,821 18,464 15,922 58,225
Association management
services 1,673 1,905 1,685 5,527
Wireless 1,456 1,387 4,830 4,209
Corporate and
administrative 1,305 1,808 2,035 4,202
Depreciation 572 560 1,373 1,625
Amortization 620 1,045 3,836 2,875
(Gain) loss on disposal
of assets, net (28) 824 (586) 807
28,501 34,301 51,502 103,148
Operating income 4,147 1,950 5,095 10,311
Other income (expense):
Interest expense related
to Series B preferred
stock (113) (114) (114) (340)
Interest expense, other (2,902) (3,408) (3,138) (9,870)
Debt issue cost
amortization (263) (300) (266) (851)
Income (loss) from
continuing operations
before income taxes 869 (1,872) 1,577 (750)
Income tax expense (benefit) 405 (1,298) 678 (121)
Earnings (loss) from
continuing operations 464 (574) 899 (629)
Income from discontinued
operations, net of tax 271 716
Net income (loss) 735 (574) 1,615 (629)
Series A preferred stock
dividends accrued (271) (272) (274) (814)
Net income (loss) available
to common stockholders $ 464 $ (846) $ 1,341 $ (1,443)
Basic per share information:
Earnings (loss) from
continuing operations $ 0.09 $ (0.11) $ 0.18 $ (0.12)
Income from discontinued
operations $ 0.05 $ -- $ 0.14 $ --
Net income (loss) $ 0.14 $ (0.11) $ 0.33 $ (0.12)
Net income (loss)
available to common
stockholders $ 0.09 $ (0.16) $ 0.27 $ (0.28)
Weighted average shares
outstanding 5,131 5,268 4,957 5,222
Three Months Ended Nine Months Ended
March 31, March 31,
2006 2007 2006 2007
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
EBITDA by business segment:
Operating revenues:
Publishing $ 9,732 $ 11,236 $ 30,191 $ 36,236
Collegiate marketing
and production services 18,967 21,404 19,064 64,952
Association management
services 2,224 2,473 2,240 8,073
Wireless 1,725 1,138 5,102 4,198
Operating Revenue 32,648 36,251 56,597 113,459
Operating expenses
before depreciation,
amortization and loss
(gain) on disposal of
assets, net:
Publishing 7,082 8,308 22,407 25,678
Collegiate marketing and
production services 15,821 18,464 15,922 58,225
Association management
services 1,673 1,905 1,685 5,527
Wireless 1,456 1,387 4,830 4,209
Operating expenses
before depreciation,
amortization and loss
(gain) on disposal of
assets, net 26,032 30,064 44,844 93,639
EBITDA by business segment:
Publishing 2,650 2,928 7,784 10,558
Collegiate marketing and
production services 3,146 2,940 3,142 6,727
Association management
services 551 568 555 2,546
Wireless 269 (249) 272 (11)
Total EBITDA of
business segments 6,616 6,187 11,753 19,820
Cautionary Statements for Purposes of the "Safe Harbor" Provisions of the
Private Securities Litigation Reform Act:
Except for the historical information contained herein, information set
forth inthis news release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Words such as
"expects," "anticipates," "intends," "plans," "believes," "estimates," and
variations of such words and similar expressions that indicate future events and
trends are intended to identify such forward-looking statements. These
forward-looking statements are subject to risks and uncertainties, which could
cause the company's actual results or performance to differ materially from
those expressed or implied in such statements. The Company makes no commitment
to update any forward-looking statement or to disclose any facts, events, or
circumstances after the date hereof that may affect the accuracy of any
forward-looking statement. For additional information about the Company and its
various risk factors, please see the Company's most recent Annual Report on Form
10-K and other documents as filed with the Securities and Exchange Commission.
SOURCE Triple Crown Media, Inc.
-0- 05/11/2007
/CONTACT: Thomas J. Stultz, President & Chief Executive Officer,
+1-859-226-4356, or Mark G. Meikle, Executive Vice President & Chief Financial
Officer, +1-859-226-4376, both of Triple Crown Media, Inc./
/Web site: http://www.triplecrownmedia.com /