Television Company Belo Corp. (BLC) Reports Earnings For First Quarter 2013

DALLAS, April 25, 2013 /PRNewswire/ -- Television company Belo Corp. (NYSE: BLC) today reported net earnings per share of $0.16 in the first quarter of 2013 compared to net earnings per share of $0.14 in the first quarter of 2012.  

Dunia A. Shive, Belo's president and Chief Executive Officer, said, "The Company's total revenue grew almost 3 percent in the first quarter of 2013 compared to the first quarter of 2012, with gains in core spot and total spot revenue.  Also, our ongoing investments in interactive products and services contributed to a 22 percent increase in Internet revenue. 

"Combined station and corporate operating costs were 4.1 percent higher in the first quarter of 2013 compared to the first quarter of 2012 due primarily to higher share-based compensation expense associated with the Company's higher stock price and higher programming expense.

"Our station-adjusted EBITDA totaled $56.1 million in the first quarter of 2013 compared to $54.9 million in the first quarter of 2012.  Our station-adjusted EBITDA margin was 35 percent."

First Quarter in Review

Operating Results

Total revenue of $160.3 million in the first quarter of 2013 was $4.4 million, or 2.8 percent, higher than the first quarter of 2012.

Core spot revenue was up about 2 percent with a 7 percent increase in national spot revenue and 1 percent decrease in local spot revenue.  Super Bowl revenue was approximately $1.4 million higher in the first quarter of 2013 versus the first quarter of 2012.  Core spot revenue growth came primarily from strength in the automotive, retail and telecommunications categories, partially offset by lower spending in the healthcare, restaurants and entertainment categories.  Political revenue in the first quarter of 2013 totaled $0.6 million, which was $1 million lower than the first quarter of 2012.  Total spot revenue, including political, was up 1 percent in the first quarter of 2013 compared to the first quarter of 2012.  

Other revenue, which is comprised primarily of Internet advertising, retransmission revenue, and barter and trade advertising, was up 11 percent in the first quarter of 2013 compared to the first quarter of 2012, including a 22 percent increase in Internet advertising revenue and an 8 percent increase in retransmission revenue.

Station salaries, wages and employee benefits were basically flat in the first quarter of 2013 compared to the first quarter of 2012.  Station programming and other operating costs in the first quarter of 2013 were up $3.3 million compared to the first quarter of 2012 due to higher programming expense associated with reverse compensation and higher sales-related costs associated with the Company's increase in revenue.

Corporate

Corporate operating costs were $1.1 million higher in the first quarter of 2013 compared to the first quarter of 2012, mostly due to higher share-based compensation expense associated with the increase in the Company's stock price.

Other Items

Belo's depreciation expense totaled $7 million in the first quarter of 2013, down from $7.5 million in the first quarter of 2012.

The Company's interest expense of $14.6 million in the first quarter of 2013 was $3 million lower than the first quarter of 2012 due primarily to lower debt levels associated with the early redemption of the Company's May 2013 notes in November of 2012.

Income tax expense increased $1.4 million in the first quarter of 2013 compared to the first quarter of 2012 due primarily to higher pre-tax earnings. 

Total debt at March 31, 2013 was $720 million.  The Company had $7.8 million drawn on its credit facility and $5.1 million in cash and temporary cash investments at March 31, 2013.  The Company's total leverage ratio, as defined in the Company's credit facility, was 2.7 times at March 31, 2013.  Belo invested $4.7 million in capital expenditures in the first quarter of 2013.

Non-GAAP Financial Measures

A reconciliation of station-adjusted EBITDA to earnings from operations is set forth in an exhibit to this release.

Outlook

Looking forward, Shive said, "Based on recent pacings, we currently estimate core spot revenue to be up 2 to 2.5 percent in the second quarter of 2013 compared to the second quarter of 2012.  As we cycle against $9.5 million of political revenue in the second quarter of last year, we currently estimate total revenue to be down 1.5 to 2 percent in the second quarter of 2013, with total revenue excluding political estimated to be up 3 to 3.5 percent.  Combined station and corporate operating costs are currently estimated to be up around 4 percent in the second quarter of 2013 when compared to the second quarter of 2012."

A conference call to discuss this release and other matters of interest to shareholders and analysts will follow at 10:00 a.m. CDT this morning.  The conference call will be simultaneously webcast on Belo Corp.'s website (www.belo.com/invest).  Following the conclusion of the webcast, a replay of the conference call will be archived on Belo's website.  To access the listen-only conference lines, dial 1-866-269-9608.  A replay line will be open from 12:00 p.m. CDT on April 25, 2013 until 11:59 p.m. CDT on May 9, 2013.  To access the replay, dial 800-475-6701 or 320-365-3844.  The access code for the replay is 288408.

About Belo Corp.

Television company Belo Corp. (NYSE:  BLC) owns and operates 20 television stations (nine in the top 25 markets) and their associated websites.  Belo stations, which include affiliations with ABC, CBS, NBC, FOX, and the CW, 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 www.belo.com or by contacting Paul Fry, vice president/Investor Relations & Assistant Treasurer, at 214-977-4465.

Statements in this communication concerning Belo's business outlook or future economic performance, anticipated profitability, revenues, expenses, capital expenditures, dividends, investments, future financings, impairments, pension matters, 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 predicted in any such forward-looking statement. Belo undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

Such risks, uncertainties and other factors include, but are not limited to, uncertainties regarding the 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 viewership measurement services; changes in the network-affiliate business model for broadcast television; technological changes, and the development of new systems and devices to distribute and consume 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, including changes regarding spectrum; 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, co-owned ventures, and investments; pension plan matters; 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.

SOURCE Belo Corp.