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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): January 28, 1997
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LIN Television Corporation
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(Exact Name of Registrant as Specified in its Charter)
Delaware
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(State or Other Jurisdiction of Incorporation)
0-25206 13-3581627
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(Commission File Number) (I.R.S. Employer Identification No.)
Four Richmond Square, Suite 200
Providence Rhode Island 01720
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(Address of Principal Executive Offices) (Zip Code)
(401) 454-2880
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(Registrant's Telephone Number, Including Area Code)
Not Applicable
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(Former Name or Former Address, if Changed Since Last Report)
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ITEM 5. OTHER EVENTS
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On January 28, 1997, LIN Television Corporation (the "Company") issued a
press release reporting on its financial results for the three month and twelve
months periods ended December 31, 1996.
The press release contains forward-looking statements that involve a number
of risks and uncertainties, including references to expectations for revenues,
market share and broadcast cash flow for periods after December 31, 1996. There
are a number of factors that could cause the Company's actual results to differ
materially from those forecast or projected in such forward-looking statements.
These factors include the Company's outstanding indebtedness and substantial
leverage, the restrictions imposed by the terms of the Company's indebtedness,
the impact of significant competition from both over-the air broadcast stations
and programming alternatives such as cable television, wireless cable, in home
satellite distribution service and pay-per-view and home video and entertainment
services, the impact of new technologies and changes in FCC regulations and
those set forth under the caption "Certain Factors That May Affect Future
Results" in the Company's Annual Report on Form 10-K for the period ended
December 31, 1995. Readers are cautioned not to place undue reliance on these
forward-looking statements which speak only as of the date hereof. The Company
undertakes no obligation to publicly release the result of any revisions to
these forward-looking statements which may be made to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
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ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
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(a) Financial Statements of Business Acquired.
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Not applicable.
(b) Pro Forma Financial Information.
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Not applicable.
(c) Exhibits.
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99.1 Press Release dated January 28, 1997
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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 hereunto duly authorized.
Date: February 10, 1997 LIN Television Corporation
(Registrant)
/s/ Peter E. Maloney
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By: Peter E. Maloney
Vice President of Tax
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INDEX TO EXHIBITS
Exhibit
Number Page No.
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99.1 Press Release dated January 28, 1997
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EXHIBIT 99.1
[LIN Television Letterhead]
LIN
TELEVISION
NEWS FROM LIN TELEVISION CORPORATION...
FOR IMMEDIATE RELEASE
LIN TELEVISION REPORTS RECORD RESULTS
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BROADCAST CASH FLOW INCREASES 28% FOR THE FOURTH QUARTER
Providence, RI -- January 28, 1997--LIN Television Corporation (NASDAQ:LNTV)
today reported record levels of net revenue and broadcast cash flow for the
fourth quarter and year ended December 31, 1996. The strong growth resulted
primarily from the performance of its core businesses.
Fourth quarter net revenues of $71.5 million increased 11.8% compared to $63.9
million in the fourth quarter of 1995. Broadcast cash flow grew to $39.7 million
in the fourth quarter, up 27.8% from $31.1 million in the prior year's quarter.
Both the current and prior period include the same group of stations. The
consolidated broadcast cash flow margin for the fourth quarter was 56%.
Gary Chapman, President and Chief Executive Officer commented: "1996 was a
spectacular year for LIN Television. The company was ideally positioned to
benefit from the lucrative 1996 advertising market which included the Super
Bowl, the Summer Olympics on NBC, and a high volume of political advertising.
Our LMAs turned profitable in the third quarter of this year and are expected to
remain profitable going forward. These events, as well as the addition of the
Texas Rangers to the Company's Texas line-up, have helped the LIN stations
attract record audience levels in 1996 and have positioned the company well for
a strong 1997. LIN achieved a 48% consolidated broadcast cash flow margin for
the year."
"The outlook for 1997 is promising for LIN Television. Overall, we expect
advertising revenues for the year to increase in the single-digit range with the
first quarter coming in fairly flat. We acknowledge that the non-recurring
events in 1996 will present challenging comparisons for many broadcasters. LIN,
however, is particularly well positioned for growth. Our markets in Dallas,
Austin, Hartford and Norfolk should experience gains in revenue, market share
and broadcast cash flow as our LMA stations in those markets become more
profitable. 1997 looks good for these stations now that the Texas Rangers are
firmly established on the LIN stations and the new towers in Hartford and
Norfolk have been completed. Overall, the
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outlook for all our markets and LMAs continues to be bright as we maintain our
focus on local news, public affairs and community service."
The Company also announced that 1996 net revenues for the full year increased
25.8% to $273.4 million from $217.2 million in 1995. Similarly, broadcast cash
flow for 1996 increased 22.2% to $130.4 million from $106.7 million in 1995. On
a pro forma basis, including WIVB for all of 1995, net revenues increased 17.1%
from $233.5 million and broadcast cash flow improved 15.4% from $113.0 million.
Net income for the year equaled $46.5 million, or $1.54 per common share,
compared to net income of $38.0 million and EPS of $1.28 for the prior year. For
the fourth quarter, LIN reported net income of $16.9 million, or $0.56 per
share, compared to $13.6 million, or $0.46 per share, in the prior year's
period. The growth in net income during the year resulted from improved
operating performance fueled by incremental political revenues of approximately
$6.5 million and incremental Olympic revenues of $4.5 million.
The affiliate group of owned stations performed very well in 1996. Pro forma net
revenue increased 12.5% over pro forma 1995 and pro forma broadcast cash flow
improved 17.7% to $133.7 million. The broadcast cash flow margin for the
affiliate group for the year improved as well, increasing from 52% in 1995 to
54% in 1996. Losses from the LMAs totaled approximately $3.3 million for the
year.
LIN estimates that, excluding political revenues, net revenue for the year would
have increased 22.6%. Fourth quarter non-political net revenue was 4.3% higher
than the prior year's period.
LIN Television Corporation owns and operates eight network-affiliated television
stations and has entered into Local Marketing Agreements with stations in four
of its eight markets. LIN's O&Os and LMAs include:
<TABLE>
<CAPTION>
Market Station DMA Channel Network LMA
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<S> <C> <C> <C> <C> <C>
Dallas-Fort Worth KXAS #8 5 NBC KXTX/39/Ind
Indianapolis WISH #25 8 CBS
New Haven-Hartford WTNH #27 8 ABC WBNB/59/WB
Buffalo WIVB #39 4 CBS
Norfolk-Portsmouth WAVY #40 10 NBC WVBT/43/WB-
FOX
Austin KXAN #63 36 NBC KNVA/54/WB
Decatur WAND #82 17 ABC
Fort Wayne WANE #103 15 CBS
</TABLE>
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AT&T Wireless Services, Inc., a wholly owned subsidiary of AT&T Corp. owns
approximately 45% of LIN.
For further information contact:
LIN TELEVISION CORPORATION THE ABERNATHY MACGREGOR GROUP
Deborah R. Jacobson Rob Lerner
Vice President of Corporate (212) 371-5999
Development & Treasurer
(401) 457-9403
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LIN TELEVISION CORPORATION
<TABLE>
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
<CAPTION>
Three Months Ended Twelve Months Ended
December 31, December 31,
---------------------- ----------------
1996 1995 1996 1995
---- ---- ---- ----
(unaudited)
<S> <C> <C> <C> <C>
Net revenues.............................................. $71,472 $63,903 $273,367 $217,247
Operating costs and expenses:
Direct operating....................................... 14,658 13,941 68,954 49,342
Selling, general and
administrative....................................... 14,136 13,023 59,974 47,646
Corporate.............................................. 1,769 1,359 6,998 5,747
Amortization of program rights......................... 3,562 3,866 14,464 12,357
Depreciation and amortization of
intangible assets.................................... 4,829 4,701 23,817 17,127
------- ------- -------- --------
Total operating costs and expenses........................ 38,954 36,890 174,207 132,219
------- ------- -------- --------
Operating income.......................................... 32,518 27,013 99,160 85,028
Other (income) expense:
Interest expense....................................... 6,006 7,178 26,582 26,262
Investment income...................................... (413) (224) (1,354) (1,258)
Other expense.......................................... - - - 320
Equity in loss of joint venture........................ 362 - 995 -
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Total other expense....................................... 5,955 6,954 26,223 25,324
------- ------- -------- --------
Income before provision for income taxes.................. 26,563 20,059 72,937 59,704
Provision for income taxes................................ 9,640 6,411 26,476 21,674
------- ------- -------- --------
Net Income................................................ $16,923 $13,648 $46,481 $38,030
======= ======= ======= =======
Per share amounts:
Net Income................................................ $ 0.56 $ 0.46 $ 1.54 $ 1.28
======= ======= ========= ========
Weighted average shares outstanding....................... 30,345 29,736 30,120 29,757
======= ======= ======== =======
</TABLE>
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LIN TELEVISION CORPORATION
SUPPLEMENTAL FINANCIAL DATA
CONSOLIDATED STATEMENTS OF BROADCAST CASH FLOW
(in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Twelve Months Ended
December 31, December 31,
---------------------- ----------------
1996 1995 1996 1995
---- ---- ---- ----
(unaudited)
<S> <C> <C> <C> <C>
Net revenues.............................................. $71,472 $63,903 $273,367 $217,247
------- ------- -------- --------
Operating income.......................................... 32,518 27,013 99,160 85,028
Plus:
Corporate expenses..................................... 1,769 1,359 6,998 5,747
Depreciation and amortization of
intangible assets.................................... 4,829 4,701 23,817 17,127
Non-cash pension expense............................... 390 (128) 1,496 801
Amortization of program rights......................... 3,562 3,866 14,464 12,357
Less:
Program payments....................................... 3,355 5,730 15,536 14,311
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Broadcast cash flow....................................... $39,713 $31,081 $130,399 $106,749
------- ------- -------- --------
Broadcast cash flow as a percentage of
net revenues........................................... 56% 49% 48% 49%
Other Data:
Debt outstanding 350,000
Cash and cash equivalents 27,952
Note: "Broadcast cash flow", which is commonly used as a measure of performance for broadcast
companies, is defined as operating income plus corporate expenses, depreciation and
amortization, including both tangible and intangible assets and program rights and other non-
cash items, less cash payments for program rights. Cash program payments represent cash
payments for current program payables, and do not necessarily correspond to program usage.
Broadcast cash flow does not purport to represent cash provided by operating activities as
reflected in the Company's consolidated statements of cash flow, 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.
</TABLE>
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LIN TELEVISION CORPORATION
SUPPLEMENTAL FINANCIAL DATA
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS AND BROADCAST CASH FLOW
INCLUDES RESULTS OF OPERATIONS FOR WIVB-TV FOR ALL OF 1995
(In thousands)
(Unaudited)
<TABLE>
<CAPTION>
12 Months
Ended Fourth Third Second First Fourth
December 31, Quarter Quarter Quarter Quarter Quarter
1996 1996 1996 1996 1996 1995
------ ------ ------ ------ ------ -----
<S> <C> <C> <C> <C> <C> <C>
Net revenues.............................. $273,367 $71,472 $68,780 $75,576 $57,539 $63,963
Operating costs and expenses:
Direct operating expenses.............. 68,954 14,658 19,635 19,830 14,831 13,947
S, G & A............................... 59,974 14,136 14,990 15,924 14,924 13,030
Corporate.............................. 6,998 1,769 1,921 1,663 1,645 1,359
Amortization of program rights......... 14,464 3,562 3,492 3,559 3,851 3,867
Depreciation and amortization
of intangible assets.................. 23,817 4,829 6,364 6,326 6,298 4,701
-------- ------- ------- ------- ------- -------
Total operating expenses.................. 174,207 38,954 46,402 47,302 41,549 36,904
-------- ------- ------- ------- ------- -------
Operating income.......................... $ 99,160 $32,518 $22,378 $28,274 $15,990 $27,059
Broadcast cash flow....................... $130,399 $39,713 $31,176 $36,126 $23,384 $31,128
======== ======= ======= ======= ======= =======
Broadcast cash flow as a percentage
of net revenues........................... 48% 56% 45% 48% 41% 49%
</TABLE>
