<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
June 10, 1999
THE ACKERLEY GROUP, INC.
(Exact name of registrant as specified in its charter)
DELAWARE
(State or other jurisdiction of incorporation)
1-10321 91-1043807
---------------------- -----------------------
(Commission File Number) IRS Employer Identification No.
1301 Fifth Avenue, Suite 4000
Seattle, Washington 98101
(Address of principal executive offices) (zip code)
Registrant's telephone number, including area code: (206) 624-2888
<PAGE> 2
ITEM 5. OTHER EVENTS
On June 10, 1999, The Ackerley Group, Inc., a Delaware corporation (the
"Company"), announced. that it expects its results of operations for the second
quarter of 1999 will be adversely affected by a charge related to its
implementation of Digital CentralCasting(TM) and lower than previously
anticipated revenue from NBA-related activities due in large part to the effect
of the NBA lock-out.
In connection with Digital CentralCasting(TM), the Company expects to
recognize a reorganization charge of approximately $1.0 million in the second
quarter 1999. In addition, the Company expects that its sports & entertainment
segment's Operating Cash Flow (defined as net revenue less operating expenses
before amortization, depreciation, interest, litigation, disposition of assets,
and stock compensation expenses) for the second quarter of 1999 will be between
$1.0 million and $2.0 million lower than its Operating Cash Flow for the same
period in 1998. This is due to reduced revenues (after expenses) from Seattle
SuperSonics missing the 1999 playoffs and lower than anticipated revenues from
NBA-related activities due to the NBA lock-out offset, in part, by additional
revenue (after expenses) generated by the extension of the 1999 regular season
into the 1999 second quarter.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(a) Financial statements.
Not applicable.
(b) Pro forma financial information.
Not applicable.
(c) Exhibits.
(99) Press release issued by Company, dated June 10, 1999.
2
<PAGE> 3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: June 16, 1999
THE ACKERLEY GROUP, INC.
By: /s/ KEITH W. RITZMANN
--------------------------------------
Keith W. Ritzmann
Senior Vice President and Chief
Information Officer, Assistant
Secretary and Controller
3
<PAGE> 1
EXHIBIT 99
FOR IMMEDIATE RELEASE
FROM: THE ACKERLEY GROUP, INC., (206) 624-2888
Media Contact: Rosanne Marks, MWW/Savitt, (206) 689-8505
Analyst Contact: Dan Evans, Jr., Vice President Public Affairs
Denis Curley, Co-President and Chief Financial Officer
Leon Berman, The MWW Group, 1-800-724-7602
- ----------------------------------------------------------------
THE ACKERLEY GROUP ANNOUNCES SECOND QUARTER OPERATING CASH FLOW ADJUSTMENTS
SEATTLE, June 10 -- The Ackerley Group (NYSE: AK), a leading media and
entertainment company, today announced that it expects its results of operations
for the second quarter of 1999 will be adversely affected by a charge related to
its implementation of Digital CentralCasting(TM) and lower than previously
anticipated revenue from NBA related activities due in large part to the effect
of the NBA lock-out.
In connection with Digital CentralCasting(TM), the company expects to recognize
a reorganization charge of approximately $1.0 million in the second quarter
1999. In addition, the company expects that its Sports & Entertainment segment's
Operating Cash Flow for the second quarter of 1999 will be between $1.0 million
and $2.0 million lower than its Operating Cash Flow for the same period in 1998.
This is due to reduced revenues (after expenses) from Seattle SuperSonics
missing the 1999 playoffs and lower than anticipated revenues from NBA related
activities due to the NBA lock-out offset, in part, by additional revenue (after
expenses) generated by the extension of the 1999 regular season into the 1999
second quarter.
The Ackerley Group is comprised of four operating segments, which contain a
total of 22 independent media and entertainment operations. The Outdoor Media
segment includes outdoor advertising in four major metropolitan markets. The
Television Broadcasting segment owns, operates under management agreements, or
has applications pending with the FCC for 13 stations in California, New York,
Washington, Oregon and Alaska. The Radio Broadcasting segment owns and operates
four radio stations in the Seattle-Tacoma market. The Sports & Entertainment
segment includes Full House Sports & Entertainment, and the NBA's Seattle
SuperSonics.
Certain statements in this release set forth management's intentions, plans,
beliefs, expectations or predictions of the future based on current facts and
analyses. Actual results may differ materially from those indicated in such
statements. Additional information on factors that may affect the business and
financial results of the Company can be found in filings of the Company with the
Securities and Exchange Commission.
