LIN TV Beats Street
October 29, 2009
PROVIDENCE, R.I.: LIN TV today posted
third-quarter results that beat Wall Streets expectations for the pure-play
broadcast company. LIN’s 3Q09 revenues totaled $81.4 million, down nearly 18
percent from a year ago, but exceeding the Street’s estimate of $76.4 million,
or down nearly 23 percent.
Political and local ad revenues were key, coming in better than expected.
Political was $3 million versus the $1.3 million forecast; local was down 8
percent versus the predicted 13 percent decline.
Net loss was $875,000, compared to a profit of $10.2 million during the year-ago
quarter, affected by a $2 million impairment charge ($1.2 million after-tax) on
a joint venture with NBC Universal. LIN also acquired Red McCombs Media for
$7.9 million during the quarter.
Earnings before interest, taxes, depreciation and amortization were $21 million,
down 37 percent but above the Street’s estimate of $17 million, down 49
Retransmission revenues were up 36 percent compared to last year. The dollar
amount is combined with digital revenues, which totaled $10.4 million compared
to $8.1 million last year.
LIN (NYSE: TVL) finished the quarter ending Sept. 30, 2009, with cash and
equivalents of $11.8 million, versus $20.1 million on Dec. 31, 2008.
Outstanding debt was $681 million versus $743 million at the end of 2008.
Looking ahead, LIN said it expects 4Q09 revenues to be down between 8.8 and
14.6 percent--$9.2 million to $15.2 million--from the $104.2 million reported
4Q08, when LIN had nearly $21 million in political revenues.
The Street predicts $84 million, down 19 percent.
For the full year, LIN expects net revenues to decline between 16.6 and 18.1
percent--$66.4 million to $72.4 million--from $399.8 million for 2008.
“Looking ahead, the pace of economic growth and recovery remains uncertain,
however, we are experiencing modest improvement in advertising demand,” said
Vince Sandusky, LIN president and CEO. “We believe our productivity gains,
continued growth in our digital business and the return of political
advertising will result in significant cash flow growth in 2010.”
Shares of LIN were up around 5 percent today at $3.59 over yesterday’s average.
More on LIN TV:
October 6, 2009: “LIN TV Acquires Online
Ad Company for $7.9 Million”
LIN TV has acquired Red McCombs Media, an online advertising and media
services outfit in Austin, Texas, for a reported $7.9 million.
More on LIN:
August 10, 2009: “LIN TV Launched on
LIN TV Corp extended its mobile TV offering to BlackBerry devices.
August 6, 2009: “LIN TV Cuts Loss on
LIN’s 27 stations generated $82.5 million during the second quarter, down
20 percent from $103.7 million a year ago.
April 30, 2009: “LIN TV Getting Into
LIN TV will use the NOW technology to develop custom iPhone applications for
each of its 27 local TV stations.
April 14, 2009: “LIN TV, Belo Risk
Breaching Loan Terms”
Executives at both TV groups said the expected to stay in compliance; LIN
seeking amended terms if necessary, and Belo hoping it won’t be.
April 1, 2009: “LIN Posts $830 Million
Loss on $1 Billion Charge”
LIN wrote down more than $1 billion for the year and took an additional
restructuring charge of nearly $13 million.