$1.3 million default event resolved March 10
HOFFMAN ESTATES, ILL.: Barrington Broadcast Group revenues dropped for the fourth quarter and the full year of 2009 on reduced political advertising.
Gross revenues for the quarter ended Dec, 31, 2009 decreased 14.7 percent to $32.5 million compared to 4Q08. The decrease was attributed to an 82 percent drop in political revenues, which came in at $1.5 million. National also feel 11 percent to $7.2 million.
Local revenues were flat for the quarter at $18.3 million. “Other” revenues increased 64 percent to $5.5 million on input from retransmission consent.
Net revenues--gross less agency commissions and other direct costs--fell 15 percent to $27.8 million. Operating expenses fell 17 percent to $17.8 million, mostly on job cuts and expenses at Barrington’s Peoria, Ill. TV station WHOI-TV related to a JSA with Granite Broadcasting.
Broadcast cash flow decreased 9 percent to $11.3 million.
Full-year 2009 gross revenues fell 17 percent to $115.6 million on an 84 percent dip in political to $2.4 million, and a 27 percent drop in national revenues to $25.1 million. Local revenues also fell for the full year by 12 percent to $70 million. “Other,” including retrans, increased 62 percent to $18.1 million.
Full-year net revenues were down 17 percent to $99 million.
Operating expenses for the year fell 12 percent to $75.1 million.
Broadcast cash flow decreased 23 percent to $31.1 million
The 4Q and full-year ’09 results do not include an estimated $9 million impairment charge that’s still being tested.
On March 10, 2010, Barrington discovered a calculating error regarding its senior credit facility for fiscal 2008. Due to this error, Barrington originally determined in April 2009 that no prepayment was required when in fact it actually owed $1,325,000. Barrington’s failure to make the prepayment triggered a default.
“In order to cure this payment event of default, on March 15, 2010, Barrington made a payment of $1,365,000, which included default interest on the prepayment amount, to the lenders under the credit facility,” the company said.