LIN Television Corporation and LIN Holdings Corp. reported financial results for the fourth quarter and fiscal year ended Dec. 31, 2001. LIN’s net loss for the year and the fourth quarter of 2001, determined in accordance with Generally Accepted Accounting Principles (GAAP), was $61.7 million and $8.4 million, respectively. A reconciliation of GAAP to pro forma earnings is included in the attached financial exhibits.
Pro forma broadcast cash flow for the year was $103.3 million compared to $132.0 million in 2000. Pro forma net revenue in 2001 was $272.4 million compared to $300.1 million in 2000.
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Financial results for 2001 and 2000 are reported on a pro forma basis to exclude from operating income, the results of WAND-TV in Decatur, Ill., which was contributed to a 33 percent-owned joint venture in April 2000. The pro forma financial results are also adjusted to include the results of several acquisitions that occurred during 2000 and 2001: WJPX-TV in San Juan, Puerto Rico, which was acquired in August 2001; WLFI-TV in Lafayette, Indiana, which was acquired in April 2000; and WWLP-TV in Springfield, Massachusetts, for which operating results were consolidated beginning in March 2000. The pro-forma financial results reflect these acquisitions and divestitures as if they had occurred at the beginning of the earliest period presented.
LIN’s pro forma net loss for 2001 was $61.6 million compared to a pro forma net loss of $29.2 million in 2000. Total debt outstanding on Dec. 31, 2001 was $1,056.2 million and cash balances at year-end were $17.2 million. Consolidated Leverage, as defined in LIN Television’s senior secured credit facility, was 6.8X compared to a covenant of 7.4X. Capital expenditures for 2001 were $21.5 million.
For the fourth quarter of 2001, LIN reported pro forma broadcast cash flow of $32.8 million compared to $42.4 million for the fourth quarter of 2000, and pro forma net revenues of $76.4 million compared to $87.0 million in the fourth quarter of 2000. LIN’s pro forma net loss for the fourth quarter was $8.4 million compared to pro forma net income of $2.3 million for the fourth quarter of 2000.
Gary Chapman, LIN’s Chairman, president and CEO, said: “While 2001 was a difficult year on many fronts, LIN’s operating results benefit from a strong local news position and excellent sales efforts in our markets. More than 60 percent of the decline in our net revenue is attributable to the absence of political revenue; however, we increased our share of revenue in our markets to more than 30 percent of total television advertising expenditures. We believe that we will further expand our revenue share as we capture Olympic revenue in the first quarter of 2002 and capitalize on our leading news programming with political revenue later in the year. As of today, pacings for the first quarter of 2002 are ahead of last year, the first increase we have seen in a year.”
LIN said that it expects to reduce operating expenses in 2002 through the implementation of technology and automation that will, combined with staffing reductions made in 2001, reduce the LIN workforce by approximately 10 percent. LIN believes that these savings, combined with reductions in programming expenses, will result in double-digit growth in BCF for 2002.
