SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ____________ to ____________.
Commission File Number : ________________
KDSM, INC.
(Exact name of Registrant as specified in its charter)
---------------------------
Maryland 52-1975792
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
2000 West 41st Street
Baltimore, Maryland 21211
(Address of principal executive offices)
(410) 467-5005
(Registrant's telephone number, including area code)
None
(Former name, former address and former fiscal year-if changed
since last report)
SINCLAIR CAPITAL
(Exact name of Registrant as specified in its charter)
---------------------------
Delaware 52-2026076
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
2000 West 41st Street
Baltimore, Maryland 21211
(Address of principal executive offices)
(410) 467-5005
(Registrant's telephone number, including area code)
None
(Former name, former address and former fiscal year-if changed
since last report)
---------------------------
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 12 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 90 days. Yes [X] No[ ]
As of May 8, 1998, there were 100 shares of Common Stock, $.01 par value of
KDSM, Inc., issued and outstanding and 2,000,000 shares of $200 million
aggregate liquidation value of 115/8% High Yield Trust Offered Preferred
Securities of Sinclair Capital, a subsidiary trust of KDSM, Inc., issued and
outstanding.
<PAGE>
KDSM, INC. AND SUBSIDIARIES
Form 10-Q
For the Quarter Ended March 31, 1998
Table of Contents
Page
Part I. Financial Information
Item 1. Consolidated Financial Statements
Consolidated Balance Sheets as of December 31, 1997 and
March 31, 1998................................................ 4
Consolidated Statements of Operations for the Three Months
Ended March 31, 1997 and 1998................................. 5
Consolidated Statement of Stockholder's Equity for the Three Months
March 31, 1998................................................ 6
Consolidated Statements of Cash Flows for the Three Months
Ended March 31, 1997 and 1998................................. 7
Notes to Unaudited Consolidated Financial Statements................. 8
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of
Operations................................................................... 10
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K.............................. 12
Signature............................................................ 13
<PAGE>
KDSM, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
DECEMBER 31, MARCH 31,
1997 1998
--------------- --------------
ASSETS
<S> <C> <C>
CURRENT ASSETS:
Cash............................................................................ $ 11 $ 167
Accounts receivable, net of allowance for doubtful accounts..................... 2,150 1,660
Dividends receivable from parent................................................ 1,085 1,085
Current portion of program contract costs....................................... 988 673
Prepaid expenses and other current assets....................................... 33 17
Deferred barter costs .......................................................... 100 57
-------------- --------------
Total current assets..................................................... 4,367 3,659
PROPERTY AND EQUIPMENT, net......................................................... 3,208 3,182
PROGRAM CONTRACT COSTS, less current portion........................................ 925 766
INVESTMENT IN PARENT PREFERRED SECURITIES........................................... 206,200 206,200
DUE FROM PARENT .................................................................... 2,673 4,071
OTHER ASSETS 7,757 7,573
ACQUIRED INTANGIBLE BROADCASTING ASSETS, net........................................ 33,410 33,152
-------------- --------------
Total Assets ............................................................ $ 258,540 $ 258,603
============== ==============
LIABILITIES AND STOCKHOLDER'S EQUITY
CURRENT LIABILITIES:
Accounts payable................................................................ $ 30 $ 82
Accrued liabilities............................................................. 396 333
Current portion of program contracts payable.................................... 1,612 1,355
Deferred barter revenues........................................................ 209 155
Subsidiary trust minority interest expense payable.............................. 969 969
-------------- --------------
Total current liabilities................................................ 3,216 2,894
PROGRAM CONTRACTS PAYABLE........................................................... 1,241 1,058
DEFERRED STATE TAXES 334 402
-------------- --------------
Total liabilities........................................................ 4,791 4,354
-------------- --------------
COMMITMENTS AND CONTINGENCIES
COMPANY OBLIGATED MANDATORILY REDEEMABLE SECURITIES OF SUBSIDIARY
TRUST HOLDING SOLELY KDSM SENIOR DEBENTURES .................................. 200,000 200,000
-------------- --------------
STOCKHOLDER'S EQUITY:
Common stock, $.01 par value, 1,000 shares authorized
and 100 shares issued and outstanding....................................... - -
Additional paid-in capital...................................................... 51,149 51,149
Retained earnings............................................................... 2,600 3,100
-------------- --------------
Total stockholder's equity............................................... 53,749 54,249
-------------- --------------
Total Liabilities and Stockholder's Equity............................... $ 258,540 $ 258,603
============== ==============
</TABLE>
The accompanying notes are an integral part of these unaudited
consolidated statements.
4
<PAGE>
KDSM, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS THREE MONTHS
ENDED ENDED
MARCH 31, MARCH 31,
1997 1998
------------- -------------
<S> <C> <C>
REVENUES:
Station broadcast revenues, net of agency commissions............... $ 2,135 $ 2,133
Revenues realized from station barter arrangements.................. 78 146
------------- -------------
Total revenues............................................... 2,213 2,279
------------- -------------
OPERATING EXPENSES:
Program and production.............................................. 376 293
Selling, general and administrative................................. 738 734
Expenses realized from station barter arrangements.................. 43 100
Amortization of program contract costs and net
realizable value adjustments.................................... 394 551
Depreciation and amortization of property and equipment............. 85 92
Amortization of acquired intangible broadcasting assets
and other assets................................................ 254 443
------------- -------------
Total operating expenses..................................... 1,890 2,213
------------- -------------
Broadcast operating income................................... 323 66
------------- -------------
OTHER INCOME (EXPENSE):
Dividend and interest income........................................ 1,355 6,611
Subsidiary trust minority interest expense.......................... (1,210) (5,812)
-------------- --------------
Income before allocation of consolidated federal income taxes
and state income taxes....................................... 468 865
ALLOCATION OF CONSOLIDATED FEDERAL INCOME TAXES......................... 142 297
STATE INCOME TAXES...................................................... 56 68
------------- -------------
NET INCOME ............................................................. $ 270 $ 500
============= =============
</TABLE>
The accompanying notes are an integral part of
these unaudited consolidated statements.
5
<PAGE>
KDSM, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF STOCKHOLDER'S EQUITY
FOR THE THREE MONTHS ENDED MARCH 31, 1998
(IN THOUSANDS)
<TABLE>
<CAPTION>
ADDITIONAL TOTAL
COMMON PAID-IN RETAINED STOCKHOLDER'S
STOCK CAPITAL EARNINGS EQUITY
---------- ------------ ------------- -------------
<S> <C> <C> <C> <C>
BALANCE, December 31, 1997 ............. $ - $ 51,149 $ 2,600 $ 53,749
Net income.......................... - - 500 500
---------- ------------ ------------- -------------
BALANCE, March 31, 1998................. $ - $ 51,149 $ 3,100 $ 54,249
========== ============ ============ ============
</TABLE>
The accompanying notes are an integral part of this
unaudited consolidated statement.
6
<PAGE>
KDSM, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
<TABLE>
<CAPTION>
THREE MONTHS THREE MONTHS
ENDED ENDED
MARCH 31, MARCH 31,
1997 1998
------------- -------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income...................................................... $ 270 $ 500
Adjustments to reconcile net income to net cash flows from
operating r
activities -
Depreciation and amortization of property and equipment..... 85 92
Amortization of acquired intangible broadcasting assets and other 254 443
assets................................................
Amortization of program contract costs and net realizable
value adjustments........................................ 394 551
Stock-based compensation.................................... - 8
Changes in assets and liabilities, net of effects of acquisitions
and dispositions-
Decrease in accounts receivable, net........................ 365 490
Increase in dividend receivable from parent............ (1,355) -
Decrease in prepaid expenses and other current assets....... 1 16
Decrease in accounts payable and
accrued liabilities...................................... (181) (21)
Increase in state deferred taxes....................... 56 68
Net effect of change in deferred barter revenues
and deferred barter costs................................ (4) (11)
Increase in subsidiary trust minority interest expense payable 1,210 -
Payments on program contracts payable........................... (514) (516)
------------- -------------
Net cash flows from operating activities......................... 581 1,620
------------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in Parent Preferred Securities..................... (206,200) -
Acquisition of property and equipment............................ (30) (66)
------------- -------------
Net cash flows used in investing activities...................... (206,230) (66)
------------- -------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in due from parent.................................... (553) (1,398)
Contributions of capital......................................... 12,008 -
Net proceeds from subsidiary trust securities offering .......... 194,192 -
------------- -------------
Net cash flows from/(used in) financing activities........... 205,647 (1,398)
------------- -------------
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (2) 156
CASH AND CASH EQUIVALENTS, beginning of period....................... 3 11
------------- -------------
CASH AND CASH EQUIVALENTS, end of period............................. $ 1 $ 167
============ ============
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING
AND FINANCING ACTIVITIES:
Parent preferred stock dividends................................. $ - $ 6,508
============ ============
Subsidiary trust minority interest payments...................... $ - $ 5,812
============ ============
</TABLE>
The accompanying notes are an integral part of these
unaudited consolidated statements.
7
<PAGE>
KDSM, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
BASIS OF PRESENTATION
The accompanying consolidated financial statements include the accounts of KDSM,
Inc., Sinclair Capital (a subsidiary trust), and KDSM Licensee Inc., which are
collectively referred to hereafter as "the Company or KDSM." KDSM, Inc. is a
television broadcaster serving the Des Moines, Iowa area through station KDSM on
Channel 17, a Fox affiliate. KDSM, Inc. is a wholly owned subsidiary of Sinclair
Broadcast Group, Inc. (the "Parent" or "Sinclair"). In addition, KDSM, Inc. owns
all of the issued and outstanding common stock of KDSM Licensee, Inc. and all of
the common trust interests of Sinclair Capital. All intercompany amounts are
eliminated in consolidation.
INTERIM FINANCIAL STATEMENTS
The consolidated financial statements for the three months ended March 31, 1998
are unaudited, but in the opinion of management, such financial statements have
been presented on the same basis as the audited consolidated financial
statements as of December 31,1997 and for the year then ended and include all
adjustments, consisting only of normal recurring adjustments necessary for a
fair presentation of the financial position and results of operations, and cash
flows for these periods.
As permitted under the applicable rules and regulations of the Securities and
Exchange Commission, these financial statements do not include all disclosures
normally included with audited consolidated financial statements, and,
accordingly, should be read in conjunction with the December 31, 1997
consolidated balance sheet and related statements of operations and cash flows
for the year ended December 31, 1997 and the related notes thereto. The results
of operations presented in the accompanying financial statements are not
necessarily representative of operations for an entire year.
PROGRAMMING
The Company has agreements with distributors for the rights to television
programming over contract periods which generally run from one to seven years.
Contract payments are made in installments over terms that are generally shorter
than the contract period. Each contract is recorded as an asset and a liability
when the license period begins and the program is available for its first
showing. The portion of the program contracts payable within one year is
reflected as a current liability in the accompanying consolidated balance
sheets.
The rights to program materials are reflected in the accompanying consolidated
balance sheets at the lower of unamortized cost or estimated net realizable
value. Estimated net realizable values are based upon management's expectation
of future advertising revenues net of sales commissions to be generated by the
program material. Amortization of program contract costs is generally computed
under either a four year accelerated method or based on usage, whichever yields
the greater amortization for each program. Program contract costs estimated by
management to be amortized in the succeeding year are classified as current
assets. Payments of program contract liabilities are typically paid on a
scheduled basis and are not affected by adjustments for amortization or
estimated net realizable value.
2. CONTINGENCIES AND OTHER COMMITMENTS:
Lawsuits and claims are filed against the Company from time to time in the
ordinary course of business. These actions are in various preliminary stages,
and no judgments or decisions have been rendered by hearing boards or courts.
Management, after reviewing developments to date with legal counsel, is of the
opinion that the outcome of such matters will not have a material adverse effect
on the Company's financial position or results of operations.
8
<PAGE>
3. COMPANY OBLIGATED MANDATORILY REDEEMABLE PREFERRED SECURITIES OF TRUST:
In March 1997, the Company completed an offering of $200 million aggregate
liquidation value of 115/8% High Yield Trust Offered Preferred Securities (the
"HYTOPS") of Sinclair Capital, a subsidiary trust of the Company. The HYTOPS
were issued March 12, 1997, mature March 15, 2009, are mandatorily redeemable at
maturity, and provide for quarterly distributions to be paid in arrears
beginning June 15, 1997. The Company utilized the proceeds of the offering
combined with other capital contributions to acquire $206.2 million of 125/8%
Series C Preferred Stock (the "Parent Preferred Securities") of Sinclair.
4. PARENT PREFERRED SECURITIES:
In March 1997, the Company utilized the proceeds of the HYTOPS combined with
other capital contributions to acquire $206.2 million of 125/8% Parent Preferred
Securities, issued by Sinclair. The Parent Preferred Securities were issued
March 12, 1997, mature March 15, 2009, are mandatorily redeemable at maturity,
and provide for quarterly distributions to be paid in arrears beginning June 15,
1997.
9
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
RESULTS OF OPERATIONS
The following discussion and analysis should be read in conjunction with the
unaudited financial statements of KDSM, Inc. and related notes included
elsewhere in this Quarterly report and the audited financial statements and
Management's Discussion and Analysis contained in the Company's Form 10-K/A, for
the fiscal year ended December 31, 1997.
The matters discussed below include forward-looking statements. Such statements
are subject to a number of risks and uncertainties, such as the impact of
changes in national and regional economies, pricing fluctuations in local and
national advertising, availability of capital and volatility in programming
costs. Additional risk factors regarding the Company are set forth in the
Company's registration statement on Form S-4 filed with the Securities and
Exchange Commission on May 2, 1997.
The following table sets forth certain operating data for three months ended
March 31, 1997 and 1998:
OPERATING DATA (dollars in thousands):
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED
MARCH 31,
1997 1998
---- ----
<S> <C> <C>
Net broadcast revenues (a).............................................. $ 2,135 $ 2,133
Barter revenues......................................................... 78 146
------------- -------------
Total revenues.......................................................... 2,213 2,279
------------- -------------
Operating Costs (b)..................................................... 1,157 1,119
Depreciation, amortization and stock-based compensation (c)............. 733 1,094
------------- -------------
Broadcast operating income.............................................. 323 66
Dividend and interest income (d)........................................ 1,355 6,611
Subsidiary trust minority interest expense (e).......................... (1,210) (5,812)
-------------- --------------
Net income before income taxes.......................................... 468 865
Income taxes............................................................ 198 365
------------- -------------
Net income.............................................................. $ 270 $ 500
============= =============
OTHER DATA:
Broadcast cash flow (BCF) (f)....................................... $ 631 $ 717
BCF margin (g) 29.6% 33.6%
Adjusted EBITDA (h)................................................. $ 542 $ 644
Adjusted EBITDA margin (g).......................................... 25.4% 30.2%
Program contract payments........................................ $ 514 $ 516
Corporate management fees........................................ $ 89 $ 73
- ----------------------------------------------------------------------------------------------------------
</TABLE>
a) "Net broadcast revenue" is defined as broadcast revenue net of agency
commissions.
b) "Operating costs" include program and production expenses and selling,
general and administrative expenses.
c) Depreciation and amortization includes amortization of program contract
costs and net realizable value adjustments, depreciation and amortization
of property and equipment, and amortization of acquired intangible
broadcasting assets and other assets including amortization of deferred
financing costs and costs related to excess syndicated programming.
d) Dividend and interest income primarily results from dividends on the Parent
Preferred Securities.
e) Subsidiary trust minority interest expense represents distributions on the
HYTOPS.
10
<PAGE>
f) "Broadcast cash flow" is defined as broadcast operating income plus
corporate overhead expense, special bonuses paid to executive officers,
stock-based compensation, depreciation and amortization (including film
amortization and excess syndicated programming), less cash payments for
program rights. Cash program payments represent cash payments made for
current programs payable and do not necessarily correspond to program
usage. Special bonuses paid to executive officers are considered unusual
and non-recurring. The Company has presented broadcast cash flow data,
which the Company believes are comparable to the data provided by other
companies in the industry, because such data are commonly used as a measure
of performance for broadcast companies. However, broadcast cash flow does
not purport to represent cash provided by operating activities as reflected
in the Company's consolidated statements of cash flows, is not a measure of
financial performance under generally accepted accounting principles and
should not be considered in isolation or as a substitute for measures of
performance prepared in accordance with generally accepted accounting
principles.
g) "Broadcast cash flow margin" is defined as broadcast cash flow divided by
net broadcast revenues. "Adjusted EBITDA margin" is defined as Adjusted
EBITDA divided by net broadcast revenues.
h) "Adjusted EBITDA" is defined as broadcast cash flow less corporate expenses
and is a commonly used measure of performance for broadcast companies.
Adjusted EBITDA does not purport to represent cash provided by operating
activities as reflected in the Company's consolidated statements of cash
flows, is not a measure of financial performance under generally accepted
accounting principles and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
generally accepted accounting principles.
Net broadcast revenues for the three months ended March 31, 1998 remained
consistent compared to the three months ended March 31, 1997. When comparing the
three months ended March 31, 1998 to the three months ended March 31, 1997,
revenues from local advertisers increased approximately $97,000 or 6.6%, and
revenues from national advertisers decreased $128,000 or 16.0%. Revenue growth
from local advertisers primarily resulted from an increase in market revenue
growth combined with a slight increase in market share. The decrease in revenue
from national advertisers primarily resulted from a decrease in revenue from
children's programming, fast food advertisers, soft drink advertisers and
automobile advertisers.
Operating costs decreased to $1.1 million for the three months ended March 31,
1998 from $1.2 million for the three months ended March 31, 1997, or 8.3%. The
decrease in operating costs for the three months ended March 31, 1998 as
compared to the three months ended March 31, 1997 was primarily related to a
decrease in sales commissions related to national advertising revenues and a
decrease in promotion expenses.
Broadcast operating income decreased to $66,000 for the three months ended March
31, 1998 from $323,000 for the three months ended March 31, 1997, or 79.6%. The
decrease in broadcast operating income for the three months ended March 31, 1998
as compared to the three months ended March 31, 1997 was primarily attributable
to increases in amortization of intangibles related to the private placement of
$200 million aggregate liquidation value 115/8% High Yield Trust Offered
Preferred Securities (the "HYTOPS") of Sinclair Capital, a subsidiary trust of
the Company, completed March 12, 1997 and the addition of programming contracts
during the third and fourth quarters of 1997.
Subsidiary trust minority interest expense increased to $5.8 million for the
three months ended March 31, 1998 from $1.2 million for the three months ended
March 31, 1997. The increase in subsidiary trust minority interest expense for
the three months ended March 31, 1998 as compared to the three months ended
March 31, 1997 was attributable to the HYTOPS being outstanding for a partial
quarter during 1997.
Dividend and interest income increased to $6.6 million for the three months
ended March 31, 1998 from $1.4 million for the three months ended March 31,
1997. The increase in dividend and interest income for the three months ended
March 31, 1998 as compared to the three months ended March 31, 1997 was
primarily attributable to the Parent Preferred Securities being outstanding for
a partial quarter during 1997.
The income tax provision increased to $365,000 for the three months ended March
31, 1998 from $198,000 for the three months ended March 31, 1997. The increase
for the three months ended March 31, 1998 as compared to the three months ended
March 31, 1997 are attributable to the Parent Preferred Securities and the
HYTOPS being outstanding for a partial quarter during 1997, partially offset by
an increase in operating costs. The Company's effective tax rate for the three
months ended March 31, 1998 and March 31, 1997 was 42.2% and 42.3%,
respectively.
11
<PAGE>
Deferred state taxes increased to $402,000 as of March 31, 1998 from $334,000 as
of December 31, 1997. The increase in the Company's deferred tax liability as of
March 31, 1998 as compared to December 31, 1997 is primarily due to pre-tax
income for the three months ended March 31, 1998. Federal income taxes are
allocated to the Company by Sinclair at the statutory rate, are considered
payable currently and are reflected as an adjustment to Due to Parent in the
Company's balance sheet.
Broadcast cash flow increased to $717,000 for the three months ended March 31,
1998 from $631,000 for the three months ended March 31, 1997, or 13.6%. The
increase in broadcast cash flow for the three months ended March 31, 1998 as
compared to the three months ended March 31, 1997 primarily resulted from an
increase in local revenues without a corresponding increase in expenses and a
decrease in certain operating costs as noted above.
Adjusted EBITDA increased to $644,000 for the three months ended March 31, 1998
from $542,000 for the three months ended March 31, 1997, or 18.8%. The increase
in adjusted EBITDA for the three months ended March 31, 1998 as compared to the
three months ended March 31, 1997 resulted from increases in local revenues as
noted above.
The Company's broadcast cash flow margin increased to 33.6% for the three months
ended March 31, 1998 from 29.6% for the three months ended March 31, 1997. The
increase in broadcast cash flow margin for the three months ended March 31, 1998
as compared to the three months ended March 31, 1997 resulted primarily from
increases in local revenues without a corresponding increase in expenses and a
decrease in certain operating costs as noted above.
The Company's adjusted EBITDA margin increased to 30.2% for the three months
ended March 31, 1998 from 25.4% for the three months ended March 31, 1997. The
increase in adjusted EBITDA margin for the three months ended March 31, 1998 as
compared to the three months ended March 31, 1997 resulted primarily from the
circumstances affecting broadcast cash flow margins as noted above.
LIQUIDITY AND CAPITAL RESOURCES
As of March 31, 1998, the Company had cash balances of approximately $167,000
and working capital of approximately $765,000. The Company's primary source of
liquidity is cash from operations which management believes to be sufficient to
meet operating cash requirements. Cash requirements or excess cash from
operations are funded by or deposited into Sinclair's centralized banking system
utilized by all of its wholly owned subsidiaries.
The Company does not anticipate capital expenditures in the coming year to
exceed historical capital expenditures, which were approximately $197,000 in
1997. If the Company is required to make capital expenditures to keep up with
emerging technologies, management believes it will be able to fund such
expenditures from its cash flow and from the proceeds of indebtedness or
financing that is allowed to be incurred or obtained under the Company's Senior
Debenture Indenture or from capital contributions from Sinclair to the extent
permitted under Sinclair's debt instruments. Under these instruments, Sinclair
would currently be able to make capital contributions to the Company in an
amount the Company believes is sufficient to cover such costs if it chose to do
so.
PART II
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(A) EXHIBITS
27 Financial Data Schedule
(B) REPORTS ON FORM 8-K
None.
12
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report on Form 10-Q to be signed on its behalf
by the undersigned thereunto duly authorized in the city of Baltimore, Maryland
on the 11th day of May 1998.
KDSM, INC.
by: /s/ David B. Amy
----------------------------
David B. Amy
Chief Financial Officer
Principal Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<CURRENCY> US DOLLAR
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<EXCHANGE-RATE> 1
<CASH> 167
<SECURITIES> 0
<RECEIVABLES> 1,683
<ALLOWANCES> 23
<INVENTORY> 0
<CURRENT-ASSETS> 3,659
<PP&E> 3,818
<DEPRECIATION> 636
<TOTAL-ASSETS> 258,603
<CURRENT-LIABILITIES> 2,894
<BONDS> 0
200,000
0
<COMMON> 0
<OTHER-SE> 54,249
<TOTAL-LIABILITY-AND-EQUITY> 258,603
<SALES> 0
<TOTAL-REVENUES> 2,279
<CGS> 0
<TOTAL-COSTS> 2,213
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 865
<INCOME-TAX> 365
<INCOME-CONTINUING> 500
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 500
<EPS-PRIMARY> 5,000
<EPS-DILUTED> 5,000
<FN>
a) This information has been prepared in accordance with SFAS No.128, Earnings
Per Share. The basic and diluted EPS calculations have been entered in
place of primary and diluted, respectively.
</FN>
</TABLE>
