LEXINGTON, Ky., Nov. 12 /PRNewswire-FirstCall/ -- Triple Crown Media,
Inc. (Nasdaq: TCMI) today announced the signing of a definitive agreement
for the sale of its Host Communications, Inc. businesses to IMG, the
sports, entertainment and media company. The transaction will be for a
gross price of approximately $74.3 million subject to working capital
adjustments of up to $1.4 million and an indemnity escrow amount of $5.0
million. The completion of the sale, which is subject to customary
conditions to closing, is expected to occur on or before November 15.
Current plans call for TCMI president Thomas J. Stultz to join IMG as
Senior Vice President and Managing Director of IMG College Sports. TCMI
Chairman Robert S. Prather, Jr. will assume management of the Company's
newspapers.
The Host businesses in the fiscal year ended June 30, 2007 generated
$81.8 million in revenues and EBITDA of approximately $9.0 million. When
the sale is finalized, TCMI will continue to operate its Newspaper
Publishing segment which generated $48.5 million in revenues in fiscal 2007
and $14.3 million in EBITDA. After the divestiture TCMI estimates corporate
expenses of approximately $2.0 million a year for public company expenses,
legal, accounting and administration. TCMI's newspaper publishing segment
consists of the ownership and operation of six daily newspapers and one
weekly newspaper with a total daily circulation as of June 30, 2007 of
approximately 100,800 and a total Sunday circulation of approximately
135,000. All six daily newspapers are located in Georgia including: The
Albany Herald, Gwinnett Daily Post, Henry Herald, Jonesboro News-Daily,
Newton Citizen and Rockdale Citizen.
Mr. Prather said TCMI plans to use the proceeds from the sale of the
Host businesses to pay down TCMI debt.
TCMI was represented on the Host transaction by Allen & Company of New
York, NY.
Conference Call Information:
Triple Crown Media, Inc. will host a conference call to discuss this
transaction on Monday, November 12, 2007 at 2:00 PM eastern time. The live
dial-in phone number is 1-800-510-0178 (participant code 15470704). The
tape replay of the conference call will be available at 1-888-286-8010
(participant code 75604385) until December 12, 2007.
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.
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, including.
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, or Robert
S. Prather, Chairman, +1-404-266-8333
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