DALLAS, Feb. 4 /PRNewswire-FirstCall/ -- Belo Corp. (NYSE:BLC), one
of the nation's largest pure-play, publicly-traded television
companies, today reported fourth quarter and full year 2009 pro
forma earnings per share from continuing operations of $0.21 and
$0.36, respectively, compared to $0.28 and $0.79, respectively, for
the fourth quarter and full year 2008. The fourth quarter pro forma
earnings per share from continuing operations of $0.21 exceeded
analysts' consensus estimate of $0.17. Pro forma earnings per share
from continuing operations exclude three items: non-cash impairment
charges to intangible assets in 2009 and 2008, gains on the
repurchase and retirement of Company bonds in 2009 and 2008, and
spin-off related charges in 2008. Including these items, GAAP net
earnings (loss) per share from continuing operations for the fourth
quarter and full year 2009 were $0.21 and ($1.06), respectively,
compared to ($4.74) and ($4.45), respectively, for the fourth
quarter and full year 2008. 2009 in Review Commenting on the
Company's operating performance, Dunia A. Shive, Belo Corp.'s
president and Chief Executive Officer, said, "The Company's spot
revenue, excluding political, in the fourth quarter of 2009 was
down less than 1 percent when compared with the fourth quarter of
2008, a marked improvement from 2009's third quarter decline of 16
percent. The fourth quarter 2009 total revenue decline of 13.8
percent is almost entirely due to the decline in political revenue.
In the fourth quarter of 2008, the Company generated $35.9 million
in political revenue versus $8.8 million in the fourth quarter of
2009. For full year 2009, total revenues declined 19.5 percent as
the Company managed through one of the weakest advertising
environments in recent history, while also cycling against a record
$56.2 million of political revenue in 2008. "The Company's combined
station and corporate operating costs decreased 13 percent in 2009
due primarily to expense reductions implemented over the past year.
The Company's ability to generate cash remained strong during the
challenging economic environment as station EBITDA totaled almost
$200 million in 2009, with a station EBITDA margin of 34 percent.
The Company reduced its debt by $65 million during the year."
Operating Results Total revenues decreased 13.8 percent in the
fourth quarter of 2009 versus the fourth quarter of 2008. Total
spot revenue, including political, was down 16.4 percent in the
fourth quarter of 2009, with a slight increase in local spot and a
2.4 percent decrease in national spot. Total revenues decreased
19.5 percent for the full year 2009 versus 2008. Full year 2009
total spot revenue, including political, was down 23.3 percent with
18 percent and 18.5 percent decreases in local and national spot,
respectively. The fourth quarter spot revenue decline was due
mainly to the decrease in political spending. Political revenue
totaled $8.8 million in the fourth quarter of 2009 versus $35.9
million in the fourth quarter of 2008. Automotive revenue declined
9 percent in the fourth quarter of 2009, which was a significant
improvement from the third quarter decline of 36 percent. The spot
revenue decline for full year 2009 was due to the weak advertising
environment, particularly in the automotive category which was down
39 percent, and the significant political revenue generated in
2008. In 2009, political revenue totaled $13.4 million versus $56.2
million in 2008. Advertising revenue associated with Belo's Web
sites decreased 3.2 percent in the fourth quarter 2009 and 5.2
percent for the full year 2009. Retransmission revenue totaled
$42.6 million in 2009, a 29 percent increase from 2008, and
represented 7 percent of Belo's total revenue. Total station
expenses decreased 16 percent and 13 percent, respectively, for
fourth quarter and full year 2009 due to continued implementation
of cost-saving measures. The station EBITDA margin for the fourth
quarter of 2009 was 43 percent versus 41 percent in the fourth
quarter of 2008. The station EBITDA margin for full year 2009 was
34 percent versus 39 percent in 2008. Corporate Corporate operating
costs were $8 million in the fourth quarter of 2009, as compared to
$10.6 million in the fourth quarter of 2008, a decrease of 24
percent, due primarily to the continued implementation of
cost-saving measures. For full year 2009, corporate operating costs
totaled $29.9 million versus $32.2 million in 2008, a decrease of 7
percent. Other Items Belo's depreciation and amortization expense
totaled $9.4 million in the fourth quarter of 2009, 12 percent
lower than the fourth quarter of 2008. Full year 2009 depreciation
and amortization expense totaled $41.7 million, a decrease of 2.9
percent when compared to 2008. The Company's interest expense
totaled $18.4 million in the fourth quarter of 2009, an increase of
3.9 percent compared to the fourth quarter of 2008. Full year 2009
interest expense totaled $63.9 million, a 23 percent decrease
compared to full year 2008. Other income, net, decreased $18.7
million in the fourth quarter of 2009 due primarily to a $16.4
million gain in the fourth quarter of 2008 from the retirement of
$43.6 million of bonds. Other income, net, decreased $7.4 million
for full year 2009 compared to 2008 due primarily to a second
quarter 2009 write-off of certain analog equipment following the
digital television transition and a third quarter 2009 loss on the
sale of certain non-operating assets. Income tax expense increased
$131.3 million in the fourth quarter of 2009 and $10 million for
the full year 2009 due primarily to a non-cash income tax benefit
in 2008 associated with the impairment charge for that year. Total
debt at December 31, 2009 was $1.028 billion. The Company's total
leverage ratio, as defined in the Company's credit facility, was
5.9 times at December 31, 2009. Belo invested $4.7 million in
capital expenditures in the fourth quarter of 2009 and $9.2 million
for the year. Discontinued Operations On February 8, 2008, Belo
completed the spin-off of its newspaper businesses and related
assets into a separate publicly-traded company, A. H. Belo
Corporation. The results of operations of the Newspaper Group and
related corporate expenses are classified as discontinued
operations and total ($0.05) per share for full year 2008. Non-GAAP
Financial Measures A reconciliation of station EBITDA to earnings
(loss) from operations, a reconciliation of operating costs and
expenses before spin-off related costs and impairment charges to
total operating costs and expenses, and a reconciliation of net
earnings from continuing operations to pro forma net earnings from
continuing operations, are set forth in an exhibit to this release.
The three items excluded from pro forma earnings per share from
continuing operations consist of the following: -- The first
quarter of 2009 and the fourth quarter of 2008 include a net gain
of $0.09 per share and $0.10 per share, respectively, related to
the repurchase and retirement of Company bonds. -- The third
quarter of 2009 and the fourth quarter of 2008 include net
impairment charges of $1.51 per share and $5.09 per share,
respectively. The impairment charges were non-cash and did not
affect Belo's liquidity or debt covenants, and will not impact the
Company's future operations. -- The first quarter of 2008 includes
spin-off related transaction and financing costs and a one-time tax
charge related to the spin-off of the Company's newspaper
businesses and related assets on February 8, 2008, totaling $0.21
per share. The fourth quarter of 2008 includes spin-off related
charges totaling $0.01 per share. 2010 Outlook Looking to 2010,
Shive said, "Total spot revenues in January were up more than 9
percent compared to January 2009, with higher percentage growth
expected in February due to the Super Bowl on our five CBS stations
and the Olympics on our four NBC stations. First quarter spot
revenues are currently pacing up in the low double-digits, with the
automotive category currently pacing up more than 40 percent. We
expect robust political spending in 2010, most of which will come
in the second half of the year. "Our approach to expenses in 2010
will remain cautious and will be tied to the strength and
stabilization of the revenue environment. We plan to lift the wage
freeze for our employees at some point during the first half of the
year. Capital expenditures for 2010 are not expected to exceed $15
million." A conference call to discuss this release and other
matters of interest to shareholders and analysts will follow at
1:00 p.m. CST this afternoon. The conference call will be
simultaneously Webcast on Belo Corp.'s Web site
(http://www.belo.com/invest). Following the conclusion of the
Webcast, a replay of the conference call will be archived on Belo's
Web site. To access the listen-only conference lines, dial
1-800-230-1074. A replay line will be open from 3:00 p.m. CST on
February 4 until 11:59 p.m. CST February 18. To access the replay,
dial 800-475-6701 or 320-365-3844. The access code for the replay
is 143067. About Belo Corp. Belo Corp. (BLC), one of the nation's
largest pure-play, publicly-traded television companies, owns and
operates 20 television stations (nine in the top 25 markets) and
their associated Web sites. Belo stations, which include
affiliations with ABC, CBS, NBC, FOX, CW and MyNetwork TV, reach
more than 14 percent of U.S. television households in 15
highly-attractive markets. Belo stations rank first or second in
nearly all of their local markets. Additional information is
available at http://www.belo.com/ or by contacting Paul Fry, vice
president/Investor Relations & Corporate Communications, at
214-977-6835. Statements in this communication concerning Belo\'s
business outlook or future economic performance, anticipated
profitability, revenues, expenses, capital expenditures,
investments, future financings, impairments, and other financial
and non-financial items that are not historical facts, are
"forward-looking statements" as the term is defined under
applicable federal securities laws. Forward-looking statements are
subject to risks, uncertainties and other factors that could cause
actual results to differ materially from those statements. Such
risks, uncertainties and factors include, but are not limited to,
uncertainties regarding the costs, consequences (including tax
consequences) and other effects of the Company's spin-off
distribution of its newspaper businesses and related assets to A.
H. Belo Corporation and the associated agreements between the
Company and A. H. Belo relating to various matters; changes in
capital market conditions and prospects, and other factors such as
changes in advertising demand, interest rates and programming and
production costs; changes in viewership patterns and demography,
and actions by Nielsen; changes in the network-affiliate business
model for broadcast television; technological changes, and the
development of new systems to distribute television and other
audio-visual content; changes in the ability to secure, and in the
terms of, carriage of Belo programming on cable, satellite,
telecommunications and other program distribution methods;
development of Internet commerce; industry cycles; changes in
pricing or other actions by competitors and suppliers; Federal
Communications Commission and other regulatory, tax and legal
changes; adoption of new accounting standards or changes in
existing accounting standards by the Financial Accounting Standards
Board or other accounting standard-setting bodies or authorities;
the effects of Company acquisitions, dispositions and co-owned
ventures; general economic conditions; and significant armed
conflict, as well as other risks detailed in Belo's other public
disclosures and filings with the SEC including Belo's Annual Report
on Form 10-K/A. Belo Corp. Consolidated Statements of Operations
Three months ended Twelve months ended December 31, December 31, In
thousands, except --------------------- ---------------------- per
share amounts 2009 2008 2009 2008 -------------------- --------
-------- ---------- -------- (unaudited) (unaudited) (unaudited)
(restated) Net Operating Revenues $171,344 $198,851 $590,267
$733,470 Operating Costs and Expenses Station salaries, wages and
employee benefits 45,792 55,405 191,003 231,256 Station programming
and other operating costs 52,659 61,582 200,215 218,241 Corporate
operating costs 8,011 10,573 29,902 32,235 Spin-off related costs -
- - 4,659 Depreciation 9,376 10,660 41,655 42,893 Impairment -
662,151 242,144 662,151 ------- --------- --------- --------- Total
operating costs and expenses 115,838 800,371 704,919 1,191,435
Earnings (loss) from operations 55,506 (601,520) (114,652)
(457,965) Other income and expense Interest expense (18,354)
(17,666) (63,920) (83,093) Other income (expense), net (466) 18,230
12,441 19,846 ------- --------- --------- --------- Total other
income and expense (18,820) 564 (51,479) (63,247) Earnings (loss)
from continuing operations before income taxes 36,686 (600,956)
(166,131) (521,212) Income tax (benefit) expense 14,432 (116,850)
(57,070) (67,042) ------- --------- --------- --------- Net
earnings (loss) from continuing operations 22,254 (484,106)
(109,061) (454,170) Discontinued operations, net of tax - (497) -
(4,996) ------- --------- --------- --------- Net earnings (loss)
$22,254 $(484,603) $(109,061) $(459,166) ======= =========
========= ========= Net earnings per share - Basic(1) Earnings
(loss) per share from continuing operations $0.21 $(4.74) $(1.06)
$(4.45) Loss per share from discontinued operations - - - (0.05)
------- --------- --------- --------- Net earnings (loss) per share
- Basic $0.21 $(4.74) $(1.06) $(4.50) ======= ========= =========
========= Net earnings per share - Diluted(1) Earnings (loss) per
share from continuing operations $0.21 $(4.74) $(1.06) $(4.45) Loss
per share from discontinued operations - - - (0.05) -------
--------- --------- --------- Net earnings (loss) per share -
Diluted $0.21 $(4.74) $(1.06) $(4.50) ======= ========= =========
========= Cash dividends declared per share $- $0.075 $0.075 $0.30
======= ========= ========= ========= (1) Effective January 1,
2009, the Company adopted Accounting Standards Codification (ASC)
260-10 (formerly Financial Accounting Standards Board Staff
Position EITF 03-6-1), which requires the Company to consider
unvested share-based payment awards in its calculation of net
earnings per share (EPS). This change in the calculation of EPS is
retrospective and is reflected in the EPS amounts shown for 2008.
Belo Corp. Consolidated Condensed Balance Sheets December 31,
December 31, In thousands 2009 2008 ------------- ------------
------------ (unaudited) (restated) Assets Current assets Cash and
temporary cash investments $4,800 $5,770 Accounts receivable, net
139,911 138,638 Other current assets 31,413 22,276 ----------
---------- Total current assets 176,124 166,684 Property, plant and
equipment, net 177,475 209,988 Intangible assets, net 1,149,272
1,391,416 Other assets 81,590 81,091 ---------- ---------- Total
assets $1,584,461 $1,849,179 ========== ========== Liabilities and
Shareholders' Equity Current liabilities Accounts payable $20,736
$19,385 Accrued expenses 56,199 51,399 Other current liabilities
26,962 39,027 ---------- ---------- Total current liabilities
103,897 109,811 Long-term debt 1,028,219 1,092,765 Deferred income
taxes 169,888 234,452 Other liabilities 210,626 225,248 Total
shareholders' equity 71,831 186,903 ---------- ---------- Total
liabilities and shareholders' equity $1,584,461 $1,849,179
========== ========== Belo Corp. Non-GAAP to GAAP Reconciliations
Station EBITDA Three months ended Twelve months ended December 31,
December 31, In thousands ----------------- --------------------
(unaudited) 2009 2008 2009 2008 ------------ ------- ---------
--------- --------- Station EBITDA (1) $72,893 $81,864 $199,049
$283,973 Corporate operating costs 8,011 10,573 29,902 32,235
Spin-off related costs - - - 4,659 Depreciation 9,376 10,660 41,655
42,893 Impairment - 662,151 242,144 662,151 ------- ---------
--------- --------- Earnings (loss) from operations $55,506
$(601,520) $(114,652) $(457,965) ======= ========= =========
========= Note 1: Belo's management uses Station EBITDA as the
primary measure of profitability to evaluate operating performance
and to allocate capital resources and bonuses to eligible operating
company employees. Station EBITDA represents the Company's earnings
from operations before interest expense, income taxes,
depreciation, amortization, impairment charges, corporate expense
and spin-off related operating costs. Other income (expense), net
is not allocated to television station earnings from operations
because it consists primarily of equity in earnings (losses) from
investments in partnerships and joint ventures and other
non-operating income (expense). Total Operating Costs and Expenses
Before Spin-Off Related Costs and Impairment Charges In thousands
(unaudited) Three months ended Three months ended December 31, 2009
December 31, 2008 ------------------ ---------------------------
Station Corporate Combined Station Corporate Combined -------
--------- -------- ------- --------- -------- Operating costs and
expenses before spin-off related costs and impairment charges
$98,451 $8,011 $106,462 $116,987 $10,573 $127,560 Depreciation
8,501 875 9,376 9,224 1,436 10,660 Impairment charge - - - 662,151
- 662,151 -------- ------- -------- ---------- ------- ----------
Total operating costs and expenses $106,952 $8,886 $115,838
$788,362 $12,009 $800,371 ======== ======= ======== ==========
======= ========== Twelve months ended Twelve months ended December
31, 2009 December 31, 2008 --------------------------
----------------------------- Station Corporate Combined Station
Corporate Combined ------- --------- -------- ------- ---------
-------- Operating costs and expenses before spin-off related costs
and impairment charges $391,218 $29,902 $421,120 $449,497 $32,235
$481,732 Depreciation 37,008 4,647 41,655 37,444 5,449 42,893
Spin-off related costs - - - - 4,659 4,659 Impairment charge
242,144 - 242,144 662,151 - 662,151 -------- ------- --------
---------- ------- ---------- Total operating costs and expenses
$670,370 $34,549 $704,919 $1,149,092 $42,343 $1,191,435 ========
======= ======== ========== ======= ========== Belo Corp. Non-GAAP
to GAAP Reconciliations (continued) Pro Forma Net Earnings From
Continuing Operations In thousands (unaudited) Three months ended
Three months ended December 31, 2009 December 31, 2008
----------------- ------------------ Earnings EPS Earnings EPS
--------- ----- --------- ------- Net earnings (loss) from
continuing operations $22,254 $0.21 $(484,106) $(4.74) Spin-off
related tax charge - 521 0.01 Gain from extinguishment of debt, net
of tax - (10,012) (0.10) Impairment charge, net of tax - 522,179
5.10 ------- ------- Pro forma net earnings from continuing
operations $22,254 $0.21 $28,582 $0.28 ======= ======= Twelve
months ended Twelve months ended December 31, 2009 December 31,
2008 ------------------- ------------------- Earnings EPS Earnings
EPS ---------- ------- --------- -------- Net loss from continuing
operations $(109,061) $(1.06) $(454,170) $(4.45) Spin-off related
operating and financing costs, net of tax - 3,861 0.04 Gain from
extinguishment of debt, net of tax (9,131) (0.09) (10,012) (0.10)
Spin-off related tax charge - 18,756 0.18 Impairment charge, net of
tax 155,420 1.51 522,179 5.09 ------- ------- Pro forma net
earnings from continuing operations $37,228 $0.36 $80,614 $0.79
======= ======= DATASOURCE: Belo Corp. CONTACT: Paul Fry, vice
president/Investor Relations & Corporate Communications of Belo
Corp., +1-214-977-6835 Web Site: http://www.belo.com/
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