LEXINGTON, Ky., Feb. 12 /PRNewswire-FirstCall/ -- Triple Crown Media,
Inc. (Nasdaq: TCMI) announces operating income of $6.1 million for the
second quarter ended December 31, 2006 compared to an operating loss of
($1.4) million for the comparable quarter in 2005 or an improvement of $7.4
million. For the six months ended December 31, 2006, the Company reported
operating income of $8.4 million compared to $0.9 million for the
comparable period in 2005.
Total revenues for the three and six month periods ended December 31,
2006 were $48.1 million and $77.2 million, respectively compared to
revenues of $12.3 million and $23.9 million for the comparable periods in
2005.
Net income available to common stockholders was $0.4 million or $.08
per share for the quarter ended December 31, 2006 and a net loss of ($0.6)
million or ($.12) per share for the six months ended December 31, 2006. Net
income available to common stockholders, in accordance with generally
accepted accounting principles excludes the income tax benefit of net
operating loss carryforwards. Net income available to common stockholders,
adjusted for the income tax benefit of our net operating loss
carryforwards, was $1.3 million, or $.25 per share for the quarter and $0.3
million, or $.06 per share for the six months ended December 31, 2006.
"We are delighted with the performance of the Company during this past
quarter. The revenues from our Collegiate Marketing and Production
Services, Association Management Services, and Newspaper Publishing all
increased compared to the same period last year," said Thomas J. Stultz,
President and CEO of Triple Crown Media. "Our GrayLink Wireless business's
revenues declined slightly but through cost saving initiatives GrayLink was
profitable this quarter versus a loss for the comparable period in 2005. We
are especially excited that our operating income grew across all our
operations. Operating income for the quarter ended December 31, 2006 at our
Newspaper Publishing and Collegiate Marketing and Production Service
businesses increased over $1.0 million, respectively compared to the same
period in 2005."
Until December 30, 2005, the Company's Newspaper Publishing and
GrayLink Wireless businesses were owned and operated by Gray Television,
Inc., operating as wholly-owned subsidiaries or divisions of Gray.
Immediately following the distribution of our common stock to Gray's common
stockholders on December 30, 2005 in a transaction referred to as the
Spin-off, the Company acquired its Collegiate Marketing and Production
Services business and Association Management Services business pursuant to
a merger with Bull Run Corporation.
Certain of the Company's expenses for periods prior to the Spin-off,
including income tax expense and corporate and administrative expenses,
result from allocations of costs and expenses from Gray. Prior to the
Spin-off, Gray provided the capitalization for the Company, and as a result
the Company had only one day of interest-bearing debt during the three
months ended December 31, 2005. Therefore, the reported financial results
for the three and six months ended December 31, 2005 are not indicative of
the financial results of the Company as a separate, stand-alone entity.
Triple Crown Media owns and operates six daily newspapers and one
weekly newspaper in Georgia, and provides paging and other wireless
services in non- major metropolitan areas in Alabama, Florida and Georgia,
where it also operates 14 retail locations. Triple Crown Media, through its
subsidiary, Host Communications, Inc., is engaged in the Collegiate
Marketing and Production Services business and Association Management
Services business. The Collegiate Marketing and Production Services
business provides sports marketing and production services to a number of
collegiate conferences and universities and, through a contract with CBS
Sports, on behalf of the National Collegiate Athletic Association. The
Association Management Services business provides various associations with
services such as member communication, recruitment and retention,
conference planning, Internet web site management, marketing and
administration.
Non-GAAP Financial Measures
In addition to presenting financial results in accordance with
generally accepted accounting principles, or GAAP, this earnings release
also presents certain non-GAAP financial measures, including adjusted net
income and earnings per share. The non-GAAP financial measures include the
benefit of net operating losses utilized to offset federal income tax
expense. Triple Crown Media believes these measures provide investors with
additional insight into the Company's ongoing operating performance. The
additional non-GAAP financial measures should be considered in conjunction
with, but not as a substitute for, the financial information presented in
accordance with GAAP.
Conference Call Information:
Triple Crown Media, Inc. will host a conference call to discuss its second
quarter operating results on February 14, 2007 at 3:00 PM eastern time. The
live dial-in phone number is 1-800-901-5241 (participant pass code 24125514).
The call will be web cast live and will be available for replay at
http://www.triplecrownmedia.com. The taped replay of the conference call will be
available at 1-888-286-8010 (participant pass code 39091128) until April 14,
2007.
TRIPLE CROWN MEDIA, INC.
COMBINED AND CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
Three Months Ended Six Months Ended
December 31, December 31,
2005 2006 2005 2006
(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Operating revenues:
Publishing $10,673 $13,015 $20,459 $25,000
Collegiate marketing and
production services 97 30,739 97 43,548
Association management services 16 2,875 16 5,600
Wireless 1,517 1,470 3,377 3,060
12,303 48,099 23,949 77,208
Expenses:
Operating expenses before
depreciation, amortization
and loss on disposal of assets,
net:
Publishing 7,827 8,843 15,325 17,370
Collegiate marketing and
production services 101 26,970 101 39,761
Association management services 12 1,914 12 3,622
Wireless 1,650 1,465 3,374 2,821
Corporate and administrative 369 1,280 730 2,394
Depreciation 460 522 801 1,065
Amortization 3,216 1,045 3,216 1,830
Loss (gain) on disposal of assets,
net 41 - (558) (17)
13,676 42,039 23,001 68,846
Operating income (1,373) 6,060 948 8,362
Other income (expense):
Interest expense related to Series
B preferred stock (1) (113) (1) (226)
Interest expense, other (236) (3,309) (236) (6,463)
Debt issue cost amortization (3) (285) (3) (551)
Income (loss) from continuing
operations before income taxes (1,613) 2,353 708 1,122
Income tax expense (benefit) (611) 1,664 273 1,178
Earnings (loss) from continuing
operations (1,002) 689 435 (56)
Income from discontinued operations,
net of tax 203 445
Net income (loss) (799) 689 880 (56)
Series A preferred stock dividends
accrued (3) (271) (3) (542)
Net income (loss) available to
common stockholders $(802) $418 $877 $(598)
Basic per share information:
Earnings (loss) from continuing
operations $(0.20) $0.13 $0.09 $(0.01)
Income from discontinued
operations $0.04 $- $0.09 $-
Net income (loss) $(0.16) $0.13 $0.18 $(0.01)
Net income (loss) available to
common stockholders $(0.16) $0.08 $0.18 $(0.12)
Weighted average shares
outstanding 4,873 5,230 4,871 5,200
Diluted per share information:
Earnings (loss) from continuing
operations $(0.20) $0.13 $0.09 $(0.01)
Income from discontinued
operations $0.04 $- $0.09 $-
Net income (loss) $(0.16) $0.13 $0.18 $(0.01)
Net income (loss) available to
common stockholders $(0.16) $0.08 $0.18 $(0.12)
Diluted weighted average shares
outstanding 4,873 5,319 4,871 5,200
Net income (loss) available to
common stockholders
(excluding net operating loss
utilized to offset
federal income tax expense)
Net income (loss) available to
common stockholders $(802) $418 $877 $(598)
Net operating loss utilized to
offset income tax expense - 890 - 890
Net income (loss) available to
common stockholders
(excluding net operating loss
utilized to offset
federal income tax expense) $(802) $1,308 $877 $292
Basic per share information:
Net income (loss) available to
common stockholders
(excluding net operating loss
utilized to offset
federal income tax expense) $(0.16) $0.25 $0.18 $0.06
Weighted average shares
outstanding 4,873 5,230 4,871 5,200
Diluted per share information:
Net income (loss) available to
common stockholders
(excluding net operating loss
utilized to offset
federal income tax expense) $(0.16) $0.25 $0.18 $0.06
Diluted weighted average shares
outstanding 4,873 5,319 4,871 5,200
Cautionary Statements for Purposes of the "Safe Harbor" Provisions of
the Private Securities Litigation Reform Act:
Except for the historical information contained herein, information set
forth in this news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Words such
as "expects," "anticipates," "intends," "plans," "believes," "estimates,"
and variations of such words and similar expressions that indicate future
events and trends are intended to identify such forward-looking statements.
These forward-looking statements are subject to risks and uncertainties,
which could cause the Company's actual results or performance to differ
materially from those expressed or implied in such statements. The Company
makes no commitment to update any forward-looking statement or to disclose
any facts, events, or circumstances after the date hereof that may affect
the accuracy of any forward-looking statement. For additional information
about the Company and its various risk factors, please see the Company's
most recent Annual Report on Form 10-K and other documents as filed with
the Securities and Exchange Commission.
SOURCE Triple Crown Media, Inc.
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Related links:
http://www.triplecrownmedia.com
CONTACT:
Thomas J. Stultz, President & Chief Executive
Officer, +1-859-226-4356, or Mark G. Meikle, Executive Vice
President & Chief Financial Officer, +1-859-226-4376, both of
Triple Crown Media, Inc.
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