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
June 24, 1994
----------------------------
Date of Report
(Date of earliest event reported)
LIN BROADCASTING CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 0-2481 62-0673800
- - ---------------- -------------------- ---------------
(State or other (Commission File No.) I.R.S. Employer
jurisdiction of Identification No.)
incorporation)
5295 Carillon Point
Kirkland, Washington 98033
---------------------------------------------------------------
(Address of principal executive offices, including zip code)
(206) 828-1902
---------------------------------------------------------------
(Registrant's telephone number, including area code)
<PAGE>
<PAGE> 1
Item 2. Acquisition or Disposition of Assets
On June 24, 1994, LIN Broadcasting Corporation ("LIN" or the
"Company") announced that its subsidiary LCH Communications, Inc.
("LCH") has redeemed all of its outstanding Redeemable Preferred
Stock held by Comcast Cellular Communications Inc., a subsidiary
of Comcast Corp., in exchange for all of the capital stock of a
subsidiary of LCH, whose assets consist primarily of a 49.99
percent interest in the Philadelphia "A Block" cellular system
and GuestInformant (a publisher of advertiser-supported hard
cover magazines placed in hotel rooms). The redemption was
carried out pursuant to the terms of LCH's Certificate of
Incorporation.
Item 7. Financial Statements, Pro Forma Financial Information
and Exhibits
(b) Pro Forma Financial Information
(1) Unaudited Pro Forma Balance Sheet at March 31,
1994
(2) Unaudted Pro Forma Statement of Income for the
Year Ended December 31, 1993
(3) Unaudited Pro Forma Statement of Income for the
Quarter Ended March 31, 1994
(c) Exhibits
99(a) Press Release, dated June 24, 1994
<PAGE>
<PAGE> 2
UNAUDITED PRO FORMA FINANCIAL STATEMENTS
The following unaudited Pro Forma Balance Sheet and
Statements of Income give effect to the redemption of the
Preferred Stock of LCH Communications, Inc. on June 24, 1994, the
acquisition of an additional 5.2% of the New York City cellular
licensee on May 31, 1994 and the proposed spin-off of LIN
Television Corporation ("LIN Television") (which is subject to
the satisfaction of several conditions - see Footnote 3 below)
(collectively, the "Transactions"). The Unaudited Pro Forma
Balance Sheet as of March 31, 1994 gives effect to the
Transactions as though they had occurred on March 31, 1994. The
Unaudited Pro Forma Income Statements give effect to the
Transactions as if they had occurred at the beginning of each
period presented. These Unaudited Pro Forma Financial Statements
have been prepared from the historical financial statements of
LIN Broadcasting Corporation and should be read in conjunction
therewith. This pro forma information is not necessarily
indicative of future operating results or financial position that
will occur after completion of all the Transactions.
<PAGE>
<PAGE> 3
<TABLE>
Unaudited Pro Forma Balance Sheet
March 31, 1994
($ in Thousands)
<CAPTION>
Pro Forma Pro Forma Pro Forma
LIN Pro Forma Adjustments Results Adjustments
Broadcasting Adjustments for NY Before for LIN TV
Corporation for LCH Trans- Acquisition LIN TV Transaction Pro Forma
Historical action (Note 1) (Note 2) Transaction (Note 3) Results
----------- --------------- ---------- ----------- ----------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Current Assets:
Cash and cash
equivalents $ 94,283 $(13,666) $ -- $80,617 $(23,233) $57,384
Marketable
securities 13,334 -- -- 13,334 -- 13,334
Accounts receivable,
less allowance
for doubtful
accounts 166,934 (20,259) -- 146,675 (22,323) 124,352
Film contract rights,
prepaid expenses
and other current
assets 23,411 (2,038) -- 21,373 (273) 21,100
------- ------- ------- ------- ------- -------
Total current
assets 297,962 (35,963) -- 261,999 (45,829) 216,170
------- ------- ------- ------- -------- -------
(continued)<PAGE>
<PAGE> 4
Unaudited Pro Forma Balance Sheet
March 31, 1994
($ in Thousands)
(continued)
<CAPTION>
Pro Forma Pro Forma Pro Forma
LIN Pro Forma Adjustments Results Adjustments
Broadcasting Adjustments for NY Before for LIN TV
Corporation for LCH Trans- Acquisition LIN TV Transaction Pro Forma
Historical action (Note 1) (Note 2) Transaction (Note 3) Results
----------- --------------- ---------- ----------- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
Property and equipment,
less accumulated
depreciation 412,003 (958) -- 411,045 (39,861) 371,184
Other noncurrent assets 61,017 (21) -- 60,996 (7,890) 53,106
Investments in and
advances to unconsoli-
dated affiliates 269,428 (49,995) -- 219,433 -- 219,433
Intangible assets,
less accumulated
amortization 1,874,655 (6,527) 188,482 2,056,610 (84,255) 1,972,355
---------- ---------- -------- ---------- -------- ---------
Total assets $2,915,065 $(93,464) $188,482 $3,010,083 $(177,835) $2,832,248
========== ========= ======== ========== ========== ==========
(continued)<PAGE>
<PAGE> 5
Unaudited Pro Forma Balance Sheet
March 31, 1994
($ in Thousands)
(continued)
<CAPTION>
Pro Forma Pro Forma Pro Forma
LIN Pro Forma Adjustments Results Adjustments
Broadcasting Adjustments for NY Before for LIN TV
Corporation for LCH Trans- Acquisition LIN TV Transaction Pro Forma
Historical action (Note 1) (Note 2) Transaction (Note 3) Results
----------- --------------- ---------- ----------- ----------- --------
<S> <C> <S> <C> <C> <C> <C> <C> <C>
LIABILITIES AND
STOCKHOLDERS' DEFICIT
Current Liabilities:
Current portion of
long-term bank debt $161,013 $ -- $ -- $161,013 $(42,888) $118,125
Accounts payable,
accrued expenses
and other current
liabilities 211,257 (13,773) -- 197,484 (39,507) 157,977
------- -------- -------- ------- -------- -------
Total current
liabilities 372,270 (13,773) -- 358,497 (82,395) 276,102
Long-term bank debt 1,509,040 -- 145,039 1,654,079 (167,790) 1,486,289
Deferred income taxes 736,214 -- 55,416 791,630 (28,629) 763,001
Film contract rights
and other noncurrent
liabilities 12,200 4,500 -- 16,700 (3,944) 12,756
Minority interests in
equity of consolidated
subsidiaries 63,096 -- (11,973) 51,123 -- 51,123
Redeemable preferred
stock of a subsidiary 1,338,823 (1,338,823) -- -- -- --
(continued)<PAGE>
<PAGE> 6
Unaudited Pro Forma Balance Sheet
March 31, 1994
($ in Thousands)
(continued)
<CAPTION>
Pro Forma Pro Forma Pro Forma
LIN Pro Forma Adjustments Results Adjustments
Broadcasting Adjustments for NY Before for LIN TV
Corporation for LCH Trans- Acquisition LIN TV Transaction Pro Forma
Historical action (Note 1) (Note 2) Transaction (Note 3) Results
----------- --------------- ---------- ----------- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
Stockholders' Deficit:
Common stock 553 -- -- 553 -- 553
Paid-in capital 225,062 754,681 -- 979,743 104,923 1,084,666
Deficit (1,165,300) 499,951 -- (665,349) -- (665,349)
---------- --------- -------- -------- ------- --------
(939,685) 1,254,632 -- 314,947 104,923 419,870
Less common stock in
treasury, at cost (176,893) -- -- (176,893) -- (176,893)
---------- --------- -------- -------- ------- --------
Total stock-
holders' deficit (1,116,578) 1,254,632 -- 138,054 104,923 242,977
---------- --------- -------- -------- ------- --------
Total liabilities
and stockholders'
deficit $2,915,065 $(93,464) $188,482 $3,010,083 $(177,835) $2,832,248
========== ========= ======= ========== ========= =========
See accompanying notes to unaudited pro forma financial statements.<PAGE>
<PAGE> 7
Unaudited Pro Forma Statement of Income
Year Ended December 31, 1993
($ in Thousands)
<CAPTION>
Pro Forma Pro Forma Pro Forma
LIN Pro Forma Adjustments Results Adjustments
Broadcasting Adjustments for NY Before for LIN TV
Corporation for LCH Trans- Acquisition LIN TV Transaction Pro Forma
Historical action (Note 1) (Note 2) Transaction (Note 3) Results
----------- --------------- ---------- ----------- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Revenues $688,557 $(22,893) $ -- $665,664 $(127,542) $538,122
Operating Costs and Expenses:
Direct operating 123,081 (7,610) -- 115,471 (35,104) 80,367
Selling, general and
administrative 261,549 (12,771) -- 248,778 (30,747) 218,031
Corporate expenses 8,340 -- -- 8,340 -- 8,340
Depreciation 45,940 (191) -- 45,749 (5,151) 40,598
Amortization of
intangible assets 79,190 (239) 7,225 86,176 (2,769) 83,407
Provision for loss on
cellular equipment 42,152 -- -- 42,152 -- 42,152
------- -------- ------- ------- ------- -------
560,252 (20,811) 7,225 546,666 (73,771) 472,89
------- -------- ------- ------- -------- -------
Operating Income 128,305 (2,082) (7,225) 118,998 (53,771) 65,22
------- -------- ------- ------- -------- -------
(continued)<PAGE>
<PAGE> 8
Unaudited Pro Forma Statement of Income
Year Ended December 31, 1993
($ in Thousands)
(continued)
<CAPTION>
Pro Forma Pro Forma Pro Forma
LIN Pro Forma Adjustments Results Adjustments
Broadcasting Adjustments for NY Before for LIN TV
Corporation for LCH Trans- Acquisition LIN TV Transaction Pro Forma
Historical action (Note 1) (Note 2) Transaction (Note 3) Results
----------- --------------- ---------- ----------- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
Other Income (Expense):
Equity in income of
unconsolidated
affiliates 103,125 (8,556) -- 94,569 -- 94,569
Investment and
other income 7,015 (39) -- 6,976 (797) 6,179
Interest expense (95,407) -- (6,846) (102,253) 13,678 (88,575)
------- -------- ------- ------- ------- --------
14,733 (8,595) (6,846) (708) 12,881 12,173
Income Before Income
Tax Expense and
Minority Interests 143,038 (10,677) (14,071) 118,290 (40,890) 77,400
Income Tax Expense 65,569 (1,543) (4,930) 59,096 (17,083) 42,013
------- -------- ------- ------- -------- --------
Income Before Minority
Interests 77,469 (9,134) (9,141) 59,194 (23,807) 35,387
(continued)<PAGE>
<PAGE> 9
Unaudited Pro Forma Statement of Income
Year Ended December 31, 1993
($ in Thousands)
(continued)
<CAPTION>
Pro Forma Pro Forma Pro Forma
LIN Pro Forma Adjustments Results Adjustments
Broadcasting Adjustments for NY Before for LIN TV
Corporation for LCH Trans- Acquisition LIN TV Transaction Pro Forma
Historical action (Note 1) (Note 2) Transaction (Note 3) Results
----------- --------------- ---------- ----------- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
Minority Interests:
In net income of
consolidated
subsidiaries (3,896) -- 5,187 1,291 -- 1,291
Provision for preferred
stock dividends of
a subsidiary (134,300) 134,300 -- -- -- --
------- -------- ------- ------- ------- --------
Net Income (Loss) $(60,727) $125,166 $(3,954) $60,485 $(23,807) $36,678
========= ======== ========= ======== ======== ========
Net Income (Loss)
Per Share $(1.18) $1.17 $(0.46) $0.71
======= ====== ====== ======
Average Common and
Equivalent Shares
Outstanding 51,445 51,756 51,756
See accompanying notes to unaudited pro forma financial statements.<PAGE>
<PAGE> 10
Unaudited Pro Forma Statement of Income
Three Months Ended March 31, 1994
($ in Thousands)
<CAPTION>
Pro Forma Pro Forma Pro Forma
LIN Pro Forma Adjustments Results Adjustments
Broadcasting Adjustments for NY Before for LIN TV
Corporation for LCH Trans- Acquisition LIN TV Transaction Pro Forma
Historical action (Note 1) (Note 2) Transaction (Note 3) Results
----------- --------------- ---------- ----------- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Revenues $191,627 $(6,583) $ -- $185,044 $(30,971) $154,073
Operating Costs and
Expenses:
Direct costs and
expenses 128,516 (5,694) -- 122,822 (18,358) 104,464
Corporate expenses 2,613 -- -- 2,613 -- 2,613
Depreciation 13,081 (54) -- 13,027 (1,340) 11,687
Amortization of
intangible assets 19,701 (60) 1,806 21,447 (692) 20,755
------- ------- ------- ------- ------- -------
163,911 (5,808) 1,806 159,909 (20,390) 139,519
------- ------- ------- ------- ------- -------
Operating Income 27,716 (775) (1,806) 25,135 (10,581) 14,554
Other Income (Expense):
Equity in income of
unconsolidated
affiliates 31,848 (2,202) -- 29,646 -- 29,646
Investment and other
income 1,237 (9) -- 1,228 (205) 1,023
Interest expense (22,520) -- (1,617) (24,137) 2,892 (21,245)
------- ------- ------- ------- ------- --------
10,565 (2,211) (1,617) 6,737 2,687 9,424
(continued)<PAGE>
<PAGE> 11
Unaudited Pro Forma Statement of Income
Three Months Ended March 31, 1994
($ in Thousands)
(continued)
<CAPTION>
Pro Forma Pro Forma Pro Forma
LIN Pro Forma Adjustments Results Adjustments
Broadcasting Adjustments for NY Before for LIN TV
Corporation for LCH Trans- Acquisition LIN TV Transaction Pro Forma
Historical action (Note 1) (Note 2) Transaction (Note 3) Results
----------- --------------- ---------- ----------- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
Income Before Income Tax
Expense and Minority
Interests 38,281 (2,986) (3,423) 31,872 (7,894) 23,978
Income Tax Expense 12,914 (502) (1,196) 11,216 (1,818) 9,398
------- ------- ------- ------- ------- -------
Income Before Minority
Interests 25,367 (2,484) (2,227) 20,656 (6,076) 14,580
Minority Interests:
In net income of
consolidated
subsidiaries (6,887) -- 1,336 (5,551) -- (5,551)
Provision for preferred
stock dividends of
a subsidiary (33,575) 33,575 -- -- -- --
------- ------- ------- ------- ------- -------
Net Income (Loss) $(15,095) $31,091 $(891) $15,105 $(6,076) $9,029
========= ======== ======== ======== ======== ========
Net Income (Loss)
Per Share $(0.29) $0.29 $0.17
======= ===== =====
Average Common and
Equivalent Shares
Outstanding 51,511 51,970 51,970
See accompanying notes to unaudited pro forma financial statements.
</TABLE>
<PAGE>
<PAGE> 12
Notes to Unaudited Pro Forma Financial Statements
Note 1-LCH Transaction
On June 24, 1994, the Company's subsidiary, LCH
Communications, Inc., redeemed all of its outstanding Redeemable
Preferred Stock held by Comcast Cellular Communications Inc., a
subsidiary of Comcast Corp., in exchange for all of the capital
stock of a subsidiary of LCH, whose assets consist primarily of a
49.99 percent interest in the Philadelphia "A Block" cellular
system and GuestInformant. As a result, the pro forma balance
sheet reflects the redemption of the Redeemable Preferred Stock
and the disposition of the unconsolidated investment in the
Philadelphia cellular system and the various GuestInformant asset
and liability accounts. The stockholders' deficit account
includes a $466.4 million gain on the redemption of the Preferred
Stock as well as the reversal of the dividends accrued during the
three months ended March 31, 1994. The gain represents the
excess of the fair values of the assets exchanged over their book
values. The majority of the difference between the book value of
the Preferred Stock and the fair values of the assets exchanged
is credited to Additional Paid In Capital. The pro forma income
statements reflect the removal of GuestInformant's operating
results and the removal of equity in unconsolidated affiliates
related to the Philadelphia cellular system. The pro forma
income statements do not reflect the gain on the redemption of
the Preferred Stock because such gain is considered a non-
recurring credit.
Note 2-New York Acquisition
On May 31, 1994, the Company completed the acquisition of an
additional 5.2% indirect interest in the New York City cellular
licensee for approximately $145 million in cash, bringing the
Company's total interests in the New York City licensee to 98.3%.
The pro forma financial statements reflect the additional
intangible assets recorded as a result of the purchase, as well
as the decrease in the minority interest accounts. In addition,
pursuant to SFAS No. 109, "Accounting for Income Taxes", the
Company is required to provide an additional deferred tax
liability of $55.4 million as a result of the difference between
the book and the tax bases of the purchased intangible
assets.
Note 3-LIN Television Transaction
In the LIN Television transaction, the Company intends to
distribute the common stock of its subsidiary LIN Television to
the Company's stockholders on a tax-free basis. LIN Television
owns six network affiliated television stations. The Company <PAGE>
<PAGE> 13
would continue to own one network affiliated television station
(WOOD-TV) in addition to its cellular businesses. The pro forma
financial statements reflect the removal of LIN Television's
results of operations and its financial position for the periods
presented. The LIN Television transaction is subject to approval
by the Federal Communications Commission, obtaining a private
letter ruling from the Internal Revenue Service that neither the
Company nor any of its stockholders will be required to recognize
gain or loss or include any amount in income as a result of the
distribution and certain other conditions. The LIN Television
transaction is expected to close by year-end.<PAGE>
<PAGE>
SIGNATURE
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 thereunto duly authorized.
LIN BROADCASTING CORPORATION
By DONALD GUTHRIE
---------------------------
Donald Guthrie, Senior Vice
President and Chief Financial
Officer
Dated: July 11, 1994
<PAGE>
<PAGE>
EXHIBIT INDEX
Exhibit
Number
99(a) Press Release, dated June 24, 1994.
LIN BROADCASTING CORPORATION
5295 Carillon Point
Kirkland, WA 98033
(206) 828-1902
(206) 828-1900 (FAX)
FOR IMMEDIATE RELEASE
LIN BROADCASTING ANNOUNCES
REDEMPTION OF SUBSIDIARY'S PREFERRED STOCK,
ACQUISITION OF ADDITIONAL INTERESTS IN NEW YORK
KIRKLAND, Wash., June 24, 1994 - LIN Broadcasting Corporation (NASDAQ:
LINB) today announced that its subsidiary LCH Communications, Inc. has
redeemed all of the outstanding redeemable Preferred Stock of LCH held by
Comcast Cellular Communications, Inc., a subsidiary of Comcast Corporation,
in exchange for all of the capital stock of a subsidiary of LCH
Communications, whose assets consist primarily of LIN's 49.99% interest in
the Philadelphia "Block A" cellular system and its interest in
GuestInformant (a publisher of advertiser-supported hard cover magazines
placed in hotel rooms). In connection with the redemption, the LCH
Communications subsidiary and Comcast Cellular agreed to a settlement of
the pending litigation between the two companies with respect to their
interests in the Philadelphia system.
In unrelated transactions, LIN announced that it has acquired
additional interests in the New York "Block A" cellular system and $100% of
the Litchfield County, Connecticut "Block A") cellular system. LIN now
owns approximately 98.33% of the New York system.
LIN Broadcasting Corporation is engaged in cellular telephone
operations and television broadcasting. LIN has major ownership interests
in cellular telephone systems serving the metropolitan areas of New York
City, Los Angeles, Dallas-Ft. Worth, Houston and Galveston. LIN also owns
seven network-affiliated television stations. McCaw Cellular
Communications, Inc. owns approximately 52% of LIN.
Contacts:
Media: Todd Wolfenbarger
Director of Corporate Communications
McCaw Cellular Communications, Inc.
(206) 828-1851
(206) 660-5704 (cellular)
Investors/ Donald Guthrie
Analysts: Senior Vice President - Finance
LIN Broadcasting Corporation
(206) 828-1902
Lisa La Magna
Abernathy MacGregor Scanlon
(212) 371-5999
