EXHIBIT 99.1
546 E. Main Street o Lexington, KY 40508 o 859-226-4356
o www.triplecrownmedia.com
News Release
November 8, 2006
TRIPLE CROWN MEDIA, INC. ANNOUNCES FIRST QUARTER RESULTS
Lexington, Kentucky - Triple Crown Media, Inc. (Nasdaq: TCMI) announces that for
the first quarter ended September 30, 2006, total revenues were $29.1 million
and a net loss available to common stockholders was ($1.0) million, or ($.20)
per share.
Until December 30, 2005, the Company's Newspaper Publishing and Graylink
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.
"The revenues for the quarter ended September 30, 2006 from our Collegiate
Marketing and Production Services and Association Management Services
businesses, which were owned and operated by Bull Run Corporation during this
same period in 2005, increased by 29% and 9%, on a year over year basis,
respectively. In addition, revenues from our Newspaper business continued to
increase by 22% compared to the same period last year." said Thomas J. Stultz,
President and CEO of Triple Crown Media. "We are especially pleased that our
Newspapers' operating income increased by 51%. In addition, the operating income
for the quarter ended September 30, 2006 from our Association Management
Services business, which was owned and operated by Bull Run Corporation during
this same period in 2005, more than doubled and our seven collegiate schools in
our Collegiate Marketing and Production Services business performed
significantly better than last year as well even in this off-season quarter. Our
Wireless division continued to make positive contributions to the Company's cash
flows."
Certain of the Company's expenses for periods prior to the Spin-off, including
income tax expense and corporate and administrative expenses, result from
allocations of costs and expenses from Gray. Prior to the Spin-off, Gray
provided the capitalization for the Company, and as a result the Company had no
interest-bearing debt during the three months ended September 30, 2005.
Therefore, the reported financial results for the three months ended September
30, 2005 are not indicative of the financial results of the Company as a
separate, stand-alone entity.
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 five
associations with services such as member communication, recruitment and
retention, conference planning, Internet web site management, marketing and
administration.
CONFERENCE CALL INFORMATION:
Triple Crown Media, Inc. will host a conference call to discuss its first
quarter operating results on November 10, 2006 at 2:00 PM eastern time. The live
dial-in phone number is 1-800-299-8538 (participant passcode 78026696). 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 21435062) until
November 27, 2006.
TRIPLE CROWN MEDIA, INC.
COMPARATIVE RESULTS OF OPERATIONS
(Amounts in thousands, except per share data)
THREE MONTHS ENDED
SEPTEMBER 30,
-----------------------
2005 2006
---------- ----------
(Unaudited)
Operating revenues:
Publishing $ 9,786 $ 11,985
Collegiate marketing and production services 12,809
Association management services 2,724
Wireless 1,860 1,590
---------- ----------
11,646 29,108
Expenses:
Operating expenses before depreciation, amortization
and loss on disposal of assets, net:
Publishing 7,498 8,527
Collegiate marketing and production services 12,791
Association management services 1,708
Wireless 1,724 1,356
Corporate and administrative 361 1,113
Depreciation 341 542
Amortization and impairment of intangible assets - 786
Gain on disposal of assets, net (599) (17)
---------- ----------
9,325 26,806
---------- ----------
Operating income 2,321 2,302
Other income (expense):
Interest expense related to Series B preferred stock (113)
Interest expense, other (3,154)
Debt issue cost amortization (266)
---------- ----------
Income (loss) from continuing operations before income taxes 2,321 (1,231)
Income tax expense (benefit) 884 (486)
---------- ----------
Earnings (loss) from continuing operations 1,437 (745)
Income from discontinued operations, net of tax 242
---------- ----------
Net income (loss) 1,679 (745)
Series A preferred stock dividends accrued (271)
---------- ----------
Net income (loss) available to common stockholders $ 1,679 $ (1,016)
========== ==========
Basic and diluted per share information:
Earnings (loss) from continuing operations $ 0.29 $ (0.14)
Income from discontinued operations $ 0.05 $ -
Net income (loss) $ 0.34 $ (0.14)
Net income (loss) available to common stockholders $ 0.34 $ (0.20)
Weighted average shares outstanding 4,870 5,169
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 in
this news release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, including. 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.
CONTACTS:
Thomas J. Stultz, President & Chief Executive Officer, at (859) 226-4356, or
Mark G. Meikle, Executive Vice President & Chief Financial Officer,
at (859) 226-4376