Young Looks to Turn Around

The company lost $72.7 million in 2007 ($3.23 per share), a slightly worse performance than the loss of $56.6 million ($2.64 per share) in 2006.
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Young Broadcasting Inc. posted 2007 net revenues $155.7 million, or $9.7 million lower than in 2006 but $14.0 million higher than 2005, the last nonpolitical year. The company lost $72.7 million in 2007 ($3.23 per share), a slightly worse performance than the loss of $56.6 million ($2.64 per share) in 2006.

Its stock price flailing, the company announced plans in January to sell KRON-TV (San Francisco) and reduce debt load. In February, the company announced cost-cutting measures including “increased use of digital technologies” and layoffs of 11 percent of staff.

Also in February, NASDAQ warned the company that it faces delisting from the index because its stock had traded below $1 per share for 30 consecutive days. If delisted from NASDAQ, Young stock would have to trade on other, less regulated exchanges, potentially making it even tougher for the company to raise capital.

“Young Broadcasting has been built on a strategy of seeking to expand the pool of advertisers while carefully controlling our expenses,” CEO Vincent Young said. “The year just passed demonstrates the wisdom of this approach. Our innovative 3rd Leg sales programs enabled us to grow our core local and national spot sales during a period when other companies reported declines. At the same time, we have successfully reduced our operating expenses for the fifth consecutive quarter.”

The company said it is unlikely to sell KRON-TV before March 31.

Young owns 10 television stations and the national television representation firm Adam Young Inc.