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Argyle Television releases quarterly results

Business Wire, May 14, 1997

SAN ANTONIO--(BUSINESS WIRE)--May 14, 1997--Argyle Television Inc. (Nasdaq/NM:ARGL) Wednesday announced first-quarter operating results for the three-month period ended March 31, 1997.

Total revenues for the three-month period ended March 31, 1997, were $17.9 million, up 15.5 percent from $15.5 million for the three-month period ended March 31, 1996.

Broadcast cash flow for the period was $5.9 million, up 1.7 percent from $5.8 million for the 1996 period, and earnings before interest, tax, depreciation and amortization (EBITDA) were $4.9 million, up 2.1 percent from $4.8 million for the 1996 period.

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Pro forma total revenues for the three-month period ended March 31, 1997, were $18.9 million, up 3.3 percent from $18.3 million for the three-month period ended March 31, 1996. Pro forma broadcast cash flow for the period was $6.7 million, up 1.5 percent from $6.6 million for the 1996 period.

Excluding the differential in pro forma political revenues between quarters, the increase in total revenues was 5.0 percent and the increase in broadcast cash flow was 6.3 percent.

Pro forma total revenues and pro forma broadcast cash flow assume that each of the television stations currently owned by Argyle (including WLWT-TV in Cincinnati and KOCO-TV in Oklahoma City, which were acquired on Jan. 31, 1997, in a two-station swap with Gannett, and KHBS-TV/KHOG-TV, Fort Smith/Fayetteville, Ark., which Argyle acquired as of June 1, 1996) were acquired at the beginning of each respective period.

Pro forma broadcast cash flow also gives effect to the elimination of certain expenses associated with the transactions consummated, transitional costs, severance and certain expenses associated with restructured employee-benefit plans at the acquired stations.

On March 26, 1997, Argyle announced that it had entered into a definitive agreement the The Hearst Corp. to combine the television- broadcasting division of Hearst with and into Argyle, with Argyle to be renamed ``Hearst-Argyle Television Inc.''

This transaction is subject to Argyle shareholder approval and certain other conditions, but, as previously announced, Argyle expects that this transaction will be completed in mid- to late-third-quarter 1997. On May 9, 1997, the waiting period for the Hearst transaction under the Hart-Scott-Rodino Antitrust Act was terminated early.

Commenting on the quarter's events, Chairman and Chief Executive Officer Bob Marbut said: ``Strategically, the first quarter of 1997 marked an historic milestone for Argyle, its shareholders and employees as a result of the announced agreement to merge with Hearst Broadcasting.

``From its first day of operation, the newly created company (Hearst-Argyle Television) will be one of the largest independent television groups of network-affiliated stations -- both in terms of households reached and audience delivered. Also, preparation for the pending merger is going very smoothly, and we look forward to closing the transaction on our targeted timeline.

``Financially, we were able to report positive comparisons in GAAP and in pro forma revenues and BCF, respectively, for the first quarter of 1997 vs. the first quarter of 1996.

``These results were achieved despite the current challenging national advertising environment, the inclusion of significant political revenues last year, additional expenses associated with flood coverage by WLWT and the Oklahoma City bombing-trial coverage by KOCO, and the commitment of senior-management resources to both the Gannett swap and the Hearst transaction,'' he said.

Addressing the very important operational accomplishments during the quarter, President and Chief Operating Officer Blake Byrne said: ``We are terribly pleased with the introduction of WLWT and KOCO to the Argyle family of stations.

``Significant management, personnel and structural changes were promptly initiated, and a rigorous strategic planning and budgeting process is well under way at both stations. We look forward to the growth opportunities these two stations offer as well as the many synergies the entire Argyle group expects to realize as we merge with Hearst Broadcasting.''

Using Argyle's pro forma results and assuming that the Hearst transaction had occurred at the beginning of the respective periods, the combined company would have had total pro forma revenues for the three months ended March 31, 1997, of $81.3 million, as compared with $80.6 million for the same 1996 period, an increase of .9 percent; pro forma broadcast cash flow for the three months ended March 31, 1997, of $30.2 million, as compared with $28.3 million for the same 1996 period, an increase of 6.7 percent; and pro forma EBITDA for the the three months ended March 31, 1997, of $27.7 million, as compared with $25.8 million for the same 1996 period, an increase of 7.4 percent.

Pro forma revenues and broadcast cash flow do not give effect to any synergies or economies of scale that may occur as a result of the merger.

Business Services Industry

Argyle Television releases quarterly results

Business Wire, May 14, 1997

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