LEXINGTON, Ky., May 11 /PRNewswire-FirstCall/ -- Triple Crown Media,
Inc. (Nasdaq: TCMI) announces that for the third quarter ended March 31,
2007, total revenues were $36.3 million and loss from continuing operations
was ($0.6) million, or ($.11) per share compared to total revenues of $32.6
million and $0.5 million of earnings from continuing operations, or $.09
per share in the third quarter of last year. The quarter was adversely
affected by higher amortization expense due to the acquisition of Pinnacle
Sports Productions, LLC in September 2006, higher corporate and
administrative expenses principally due to stock compensation expense,
higher interest expense due to higher interest rates and debt levels and a
loss on the disposal of equipment used in printing services.
For the nine months ended March 31, 2007, total revenues were $113.5
million and a loss from continuing operations was ($0.6) million, or ($.12)
per share compared to total revenues of $56.6 million and earnings from
continuing operations of $0.9 million, or $.18 per share for the comparable
period in 2006. The year to date was adversely affected by higher corporate
and administrative expenses and interest expense. Certain of the Company's
expenses for periods prior to the spin-off of the Company from Gray
Television, Inc. (Gray) on December 30, 2005, including corporate and
administrative expenses resulted from allocations of costs and expenses
from Gray. Prior to the spin-off, Gray also provided the capitalization for
the Company, and as a result the Company had no interest-bearing debt
before December 30, 2005. Therefore, the reported financial results for the
nine months ended March 31, 2006 are not indicative of the financial
results of the Company as a separate, stand-alone entity.
"The revenues from our Newspaper Publishing, Collegiate Marketing and
Production Services, and Association Management Services businesses
increased by 15%, 13%, and 11%, respectively, compared to the same quarter
last year," said Thomas J. Stultz, President and CEO of Triple Crown Media.
"Earnings before interest taxes depreciation and amortization ('EBITDA')
increased by $0.3 million for our Newspaper Publishing business. EBITDA for
our collegiate properties increased by $0.1 million but this increase was
more than offset by a decrease of approximately ($0.3) million related to
our printing services. We disposed of equipment used in printing services
to print certain sports marketing related publications on March 22, 2007,
as we have determined that we can outsource these publications at a lower
cost. EBITDA decreased by ($0.5) million at the Company's Wireless
business. Finally, non-cash expenses related to amortization and gain or
loss on sale of assets increased by $1.3 million over the prior year
quarter."
"On a pro-forma(1) basis, the revenues from our Newspaper Publishing,
Collegiate Marketing and Production Services, and Association Management
Services businesses increased by 20%, 22% and 15%, respectively, compared
to the same nine month period last year," said Mr. Stultz. "EBITDA for the
nine months ended March 31, 2007 increased by $2.8 million, $1.3 million
and $1.0 million for our Newspaper Publishing, Collegiate Marketing and
Production Services, and Association Management Services businesses over
the same period last year, respectively. The Wireless business' revenue
declined 18% and had almost no EBITDA for the nine month period ended March
31, 2007. Non-cash expenses related to amortization and gain or loss on
sale of assets increased $0.4 million for the nine months ended March 31,
2007 versus the same period ending March 31, 2006."
Until December 30, 2005, the Company's Newspaper Publishing and
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.
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 Measure
In addition to presenting financial results in accordance with
generally accepted accounting principles, or GAAP, this earnings release
also presents earnings before interest, taxes, depreciation and
amortization ("EBITDA"). EBITDA is calculated by deducting operating
expenses from operating income and excluding amounts related to interest
expense, income tax expense or benefit, depreciation expense, amortization
expense and any gain or loss on disposal of assets. The Company believes
this non-GAAP financial measure provides investors with additional insight
into the Company's ongoing operating performance. This non-GAAP financial
measure 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
third quarter operating results on Tuesday, May 15, 2007 at 2:00 PM eastern
time. The live dial-in phone number is 1-800-638-4817 (participant passcode
30702601). The call will be webcast 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 passcode 17751974) until July
15, 2007.
(1) Pro-Forma refers to the results of operations for the nine months
ended March 31, 2006, which includes the results of operations for our
Collegiate Marketing and Production Services and Association Management
businesses for the period during which they were owned by Bull Run
Corporation prior to the Merger on December 30, 2005.
TRIPLE CROWN MEDIA, INC.
COMBINED AND CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
Three Months Ended Nine Months Ended
March 31, March 31,
2006 2007 2006 2007
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Operating revenues:
Publishing $9,732 $11,236 $30,191 $36,236
Collegiate marketing
and production services 18,967 21,404 19,064 64,952
Association management
services 2,224 2,473 2,240 8,073
Wireless 1,725 1,138 5,102 4,198
32,648 36,251 56,597 113,459
Expenses:
Operating expenses
before depreciation,
amortization and loss
(gain) on disposal of
assets, net:
Publishing 7,082 8,308 22,407 25,678
Collegiate marketing
and production
services 15,821 18,464 15,922 58,225
Association management
services 1,673 1,905 1,685 5,527
Wireless 1,456 1,387 4,830 4,209
Corporate and
administrative 1,305 1,808 2,035 4,202
Depreciation 572 560 1,373 1,625
Amortization 620 1,045 3,836 2,875
(Gain) loss on disposal
of assets, net (28) 824 (586) 807
28,501 34,301 51,502 103,148
Operating income 4,147 1,950 5,095 10,311
Other income (expense):
Interest expense related
to Series B preferred
stock (113) (114) (114) (340)
Interest expense, other (2,902) (3,408) (3,138) (9,870)
Debt issue cost
amortization (263) (300) (266) (851)
Income (loss) from
continuing operations
before income taxes 869 (1,872) 1,577 (750)
Income tax expense (benefit) 405 (1,298) 678 (121)
Earnings (loss) from
continuing operations 464 (574) 899 (629)
Income from discontinued
operations, net of tax 271 716
Net income (loss) 735 (574) 1,615 (629)
Series A preferred stock
dividends accrued (271) (272) (274) (814)
Net income (loss) available
to common stockholders $464 $(846) $1,341 $(1,443)
Basic per share information:
Earnings (loss) from
continuing operations $0.09 $(0.11) $0.18 $(0.12)
Income from discontinued
operations $0.05 $- $0.14 $-
Net income (loss) $0.14 $(0.11) $0.33 $(0.12)
Net income (loss)
available to common
stockholders $0.09 $(0.16) $0.27 $(0.28)
Weighted average shares
outstanding 5,131 5,268 4,957 5,222
Three Months Ended Nine Months Ended
March 31, March 31,
2006 2007 2006 2007
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
EBITDA by business segment:
Operating revenues:
Publishing $9,732 $11,236 $30,191 $36,236
Collegiate marketing
and production services 18,967 21,404 19,064 64,952
Association management
services 2,224 2,473 2,240 8,073
Wireless 1,725 1,138 5,102 4,198
Operating Revenue 32,648 36,251 56,597 113,459
Operating expenses
before depreciation,
amortization and loss
(gain) on disposal of
assets, net:
Publishing 7,082 8,308 22,407 25,678
Collegiate marketing and
production services 15,821 18,464 15,922 58,225
Association management
services 1,673 1,905 1,685 5,527
Wireless 1,456 1,387 4,830 4,209
Operating expenses
before depreciation,
amortization and loss
(gain) on disposal of
assets, net 26,032 30,064 44,844 93,639
EBITDA by business segment:
Publishing 2,650 2,928 7,784 10,558
Collegiate marketing and
production services 3,146 2,940 3,142 6,727
Association management
services 551 568 555 2,546
Wireless 269 (249) 272 (11)
Total EBITDA of
business segments 6,616 6,187 11,753 19,820
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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