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LIN Media LLC today reported results for its third quarter ended September 30, 2014.

Summary of Results for the Third Quarter Ended September 30, 2014

  • Net revenues increased 18% to $192.1 million compared to $163.1 million in the third quarter of 2013.
  • Net broadcast revenues increased 11% to $159.7 million in the third quarter compared to $143.6 million in the third quarter of 2013.
  • Net digital revenues increased 66% to $32.3 million compared to $19.5 million in the third quarter of 2013.
  • Operating loss, which included a non-cash impairment charge of $60.9 million, was $20.4 million compared to operating income of $23.2 million in the third quarter of 2013.
  • Net loss per diluted share was $0.49, which included the impact of the impairment charge of $1.12 per share, compared to net income per diluted share of $2.63 in the third quarter of 2013, which included a $2.56 per share benefit from special items.

Commenting on third quarter 2014 results, the Company’s President and Chief Executive Officer Vincent L. Sadusky said: “Continued growth and expansion of our digital media business, robust political advertising and increasing subscriber fees helped drive our strong results during the third, and likely final quarter before we close on our merger with Media General. This is an exciting time as we prepare to combine and create one of the largest broadcast companies in the U.S., with the largest and most diversified digital business in our industry. I have great confidence in our ability to successfully execute our integration plans and capitalize on numerous growth opportunities.”

Operating Highlights

  • Local revenues, which include net local advertising revenues, retransmission consent fee revenues and television station website revenues, increased 6% to $111.9 million compared to $105.5 million in the third quarter of 2013.
  • Net national revenues decreased 10% to $29.5 million compared to $32.8 million in the third quarter of 2013.
  • Net political revenues were $15.5 million compared to $2.6 million in the third quarter of 2013.
  • The Company’s unduplicated desktop reach equaled nearly 100 million U.S. unique visitors, reaching 42% of the total U.S. Internet audience.(1) The Company’s video platform ranked #14 in comScore’s Video Metrix report.(2)

(1) comScore September 2014 data including LIN Media (television station websites), LIN Digital, Dedicated Media and Federated Media.

(2) comScore September 2014 Video Metrix Key Measures Report.

Impairment Charge

Due to the previously announced nonrenewal of the CBS network affiliation agreement at WISH-TV, the Company performed an interim impairment test of the broadcast licenses and goodwill in its Indianapolis market as of September 30, 2014, and as a result, recorded an impairment charge of $60.9 million to the carrying value of goodwill and broadcast licenses during the third quarter of 2014.

Key Balance Sheet and Cash Flow Items

Total debt outstanding as of September 30, 2014, net of cash, was $868.9 million compared to $932.2 million as of December 31, 2013. Cash and cash equivalent balances as of September 30, 2014 were $23.4 million, compared to $12.5 million as of December 31, 2013.

The Company's outstanding revolving credit facility balance was zero as of September 30, 2014, compared to $5 million as of December 31, 2013. Consolidated net leverage, as defined in the credit agreement governing our senior secured credit facility, was 4.3x as of September 30, 2014, compared to 5.2x as of December 31, 2013. Other components of cash flow in the third quarter of 2014 include cash capital expenditures of $5.6 million and cash payments for programming of $6.7 million.

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