Belo Corp., the Dallas-based owner of television stations WHAS11 (ABC/Louisville) and KMOV 4 (CBS/St. Louis), today reported net earnings per share of $0.24 in the second quarter of 2012 compared to net earnings per share of $0.17 in the second quarter of 2011.
Dunia Shive, Belo’s president and CEO, said, "Second quarter total revenue increased 7 percent compared to the second quarter of 2011. Political revenue totaled $9.5 million, with $5 million attributable to the Senate primary in Texas. The company also received meaningful political revenue in Charlotte, Norfolk and St. Louis. Core spot revenue was up in many of the Company’s markets in the second quarter of 2012, but was down slightly overall compared to last year due to softness in national spot in certain markets. Third quarter total spot revenue is currently pacing up in the high-teens with strong core and political revenue."
Prior to releasing its results this morning, Belo declared an eight-cent dividend for holders of its Series A and Series B common stock on Thursday.
Dunia Shive, Belo’s president and CEO, said, "Second quarter total revenue increased 7 percent compared to the second quarter of 2011. Political revenue totaled $9.5 million, with $5 million attributable to the Senate primary in Texas. The company also received meaningful political revenue in Charlotte, Norfolk and St. Louis. Core spot revenue was up in many of the Company’s markets in the second quarter of 2012, but was down slightly overall compared to last year due to softness in national spot in certain markets. Third quarter total spot revenue is currently pacing up in the high-teens with strong core and political revenue."
Prior to releasing its results this morning, Belo declared an eight-cent dividend for holders of its Series A and Series B common stock on Thursday.
The dividend will be paid on Sept. 7 to shareholders of record as of Aug. 17.
Click past the jump to see the full report on Belo's second-quarter earnings.
Operating Results
The Company generated total revenue of $178 million in the second quarter of 2012, which was $11 million, or 7 percent, higher than the second quarter of 2011.
Political revenue in the second quarter of 2012 totaled $9.5 million, an $8.3 million increase compared to the second quarter of 2011. Total spot revenue, including political, was up 6 percent in the second quarter of 2012 compared to the second quarter of 2011. Total spot revenue, excluding political, was down 0.5 percent with a 2.3 percent increase in local spot revenue and a 5.5 percent decrease in national spot revenue.
Other revenue, which is comprised primarily of Internet advertising, retransmission revenue, and barter and trade advertising, was up 12 percent in the second quarter of 2012 due primarily to double-digit increases in both Internet and retransmission revenue.
Station salaries, wages and employee benefits increased $1.9 million, or 3.5 percent, during the second quarter of 2012 versus the second quarter of 2011 due primarily to annual merit increases for employees and higher accrued performance-based bonus expense. Station programming and other operating costs were down $4.5 million, or 8.5 percent, in the second quarter of 2012 compared to the second quarter of 2011 due primarily to lower syndicated programming expense.
Corporate
Corporate operating costs of $8.6 million in the second quarter of 2012 were $1.9 million higher than the second quarter of 2011 due primarily to higher accrued performance-based bonus expense and investments in interactive initiatives. The Company’s combined station and corporate operating costs were 1 percent lower compared to the second quarter of 2011.
Other Items
Belo’s depreciation expense totaled $7.5 million in the second quarter of 2012, down from $7.7 million in the second quarter of 2011.
The Company’s interest expense was $17.7 million in the second quarter of 2012 compared to $18.1 million in the second quarter of 2011.
Income tax expense increased $5.5 million in the second quarter of 2012 compared to the second quarter of 2011 due primarily to higher pre-tax earnings.
Total debt at June 30, 2012 was $887 million and consisted entirely of fixed-rate debt. Of this amount, $176 million is due May 2013 and is therefore classified as current on the Company’s June 30, 2012 balance sheet. Also as of June 30, 2012, the Company had $126 million in cash and temporary cash investments and had nothing drawn on its $200 million revolving credit facility, which does not expire until August 2016. The facility may be used, along with some level of cash, to retire the May 2013 notes.
The Company’s total leverage ratio, as defined in the Company’s credit facility, was 3.9 times at June 30, 2012, and 3.4 times when including the Company’s cash. Belo invested $6.9 million in capital expenditures in the second quarter of 2012.
Operating Results
The Company generated total revenue of $178 million in the second quarter of 2012, which was $11 million, or 7 percent, higher than the second quarter of 2011.
Political revenue in the second quarter of 2012 totaled $9.5 million, an $8.3 million increase compared to the second quarter of 2011. Total spot revenue, including political, was up 6 percent in the second quarter of 2012 compared to the second quarter of 2011. Total spot revenue, excluding political, was down 0.5 percent with a 2.3 percent increase in local spot revenue and a 5.5 percent decrease in national spot revenue.
Other revenue, which is comprised primarily of Internet advertising, retransmission revenue, and barter and trade advertising, was up 12 percent in the second quarter of 2012 due primarily to double-digit increases in both Internet and retransmission revenue.
Station salaries, wages and employee benefits increased $1.9 million, or 3.5 percent, during the second quarter of 2012 versus the second quarter of 2011 due primarily to annual merit increases for employees and higher accrued performance-based bonus expense. Station programming and other operating costs were down $4.5 million, or 8.5 percent, in the second quarter of 2012 compared to the second quarter of 2011 due primarily to lower syndicated programming expense.
Corporate
Corporate operating costs of $8.6 million in the second quarter of 2012 were $1.9 million higher than the second quarter of 2011 due primarily to higher accrued performance-based bonus expense and investments in interactive initiatives. The Company’s combined station and corporate operating costs were 1 percent lower compared to the second quarter of 2011.
Other Items
Belo’s depreciation expense totaled $7.5 million in the second quarter of 2012, down from $7.7 million in the second quarter of 2011.
The Company’s interest expense was $17.7 million in the second quarter of 2012 compared to $18.1 million in the second quarter of 2011.
Income tax expense increased $5.5 million in the second quarter of 2012 compared to the second quarter of 2011 due primarily to higher pre-tax earnings.
Total debt at June 30, 2012 was $887 million and consisted entirely of fixed-rate debt. Of this amount, $176 million is due May 2013 and is therefore classified as current on the Company’s June 30, 2012 balance sheet. Also as of June 30, 2012, the Company had $126 million in cash and temporary cash investments and had nothing drawn on its $200 million revolving credit facility, which does not expire until August 2016. The facility may be used, along with some level of cash, to retire the May 2013 notes.
The Company’s total leverage ratio, as defined in the Company’s credit facility, was 3.9 times at June 30, 2012, and 3.4 times when including the Company’s cash. Belo invested $6.9 million in capital expenditures in the second quarter of 2012.
0 comments:
Post a Comment