Barrington Posts Loss on Declining Revenues
August 12, 2009
HOFFMAN ESTATES, ILL.: Barrington Broadcasting Group finished the second quarter with a $5.8 million loss on revenues of $24.6 million, less agency commission. Gross revenues were nearly $29 million, down 16 percent from the same quarter a year ago.
The decline was attributed to a 35 percent drop in national revenues to $6 million, and a 15 percent decrease in local revenues to $18 million. Political revenues decreased by $500,000 to $100,000.
Operating expenses for the quarter ending June 30, 2009, excluding depreciation, amortization and impairment, fell nearly 14 percent to $18.8 million. The difference reflected layoffs, joint sales and service agreements and other renegotiated contracts, Barrington said. Broadcast cash flow fell 21 percent to $7.7 million from $9.8 million a year ago.
“Although we have seen positive results from both revenue and cost-saving initiatives we put in place earlier in the year, overall revenue continues to be impacted by weakness in the local and national economies,” said Jim Yager, Barrington CEO. “However, we will continue to benefit from our bond buybacks that occurred in the first half of the year as our annual interest payments to bondholders have been reduced by approximately $7 million.”
Barrington finished the quarter with cash and equivalents of $22 million, and long-term debt of $230.7 million.
Barrington has 21 TV stations in 15 markets reaching around 3.4 percent of U.S. households.
-- Deborah D. McAdams
More TVB coverage of Barrington:
May 13, 2009: “Barrington Revenues Fall 17 Percent”
Barrington Broadcasting Group posted 1Q09 revenues of $26 million, down 17 percent from $31.3 million posted a year ago. The drop was attributed to a 14 percent decline in local revenues, to $16.5 million; and a 30 percent decline in national revenues, to $5.8 million. Political was also down from $1.5 million last year to $200,000 for the quarter ending March 31.
April 27, 2009: “Barrington Broadcasting Defaults”
Barrington was one of five corporations that defaulted last week, The Wall Street Journal said, and one of four that were distressed-debt exchanges. Barrington’s sole shareholder, Bob Pittman’s Pilot Group LP, injected $16 million into the TV station business Feb. 20. Some of the money was used to buy back 10.5 percent senior notes due 2014 at an 88 percent discount in an effort to renegotiate loan terms.