Barrington Revenues Fall 17 Percent
May 13, 2009
HOFFMAN ESTATES, ILL.: 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. Revenues defined as “other” increased 71 percent to $3.6 million.
Operating expenses, sans depreciation and amortization, decreased 6.4 percent to $20.0 million from $21.4 million, primarily as a result of workforce reductions that occurred last year. Related severance cost increased by $400,000 during the quarter.
Broadcast cash flow fell 38 percent to $4.4 million from $7 million for 1Q08. Net income of $43.4 million--compared to a loss of $7.3 million last year--resulted from a debt repurchase in February, when Barrington’s owner, Pilot Group, contributed $16 million to the company.
That same month, Barrington entered an amended credit agreement allowing it to use up to $13 million for a year to retire portions of its 10 ½ percent senior notes due 2014. During the quarter, Barrington said it repurchased $67.8 million in aggregate principal of the notes for $11.6 million. In connection with the repurchase, Barrington realized income of $54.1 million, which it recorded in the quarter. Additional repurchases may occur depending on market conditions, Barrington said. -- Deborah D. McAdams