8-K 1 g66849ae8-k.txt THE LIBERTY CORPORATION 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ------------------------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported) February 6, 2001 -------------------------------- The Liberty Corporation -------------------------------------------------------------------------------- (Exact name of Registrant as Specified in Charter) South Carolina 1-5846 57-0507055 -------------------------------------------------------------------------------- (State or Other Jurisdiction (Commission File (IRS Employer of Incorporation) Number) Identification No.) 2000 Wade Hampton Boulevard, Greenville, SC 29615 -------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code (864) 609-8256 ------------------------------ n/a -------------------------------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) 2 ITEM 9. REGULATION FD DISCLOSURE. [LIBERTY CORPORATION LETTERHEAD] For Further Information: Howard Schrott (864) 609-4370 THE LIBERTY CORP. REPORTS FOURTH QUARTER AND YEAR-END RESULTS GREENVILLE, S.C., Feb. 6, 2001 -- The Liberty Corp. (NYSE: LC) today reported financial results for fourth quarter and full year ended December 31, 2000. After the sale of its insurance operations and the completion of the acquisition of Civic Communications, Liberty's sole operating subsidiary, Cosmos Broadcasting, currently operates 15 network-affiliated television stations. For the year ended December 31, 2000, net revenue increased 13 percent to $173.7 million compared with $154.0 million for the prior year. On a same station basis, net revenue increased 5 percent in 2000. Same station results reflect the results of stations operated the entire period during both 2000 and 1999. Broadcast cash flow increased 11 percent to $75.5 million compared with $67.8 million for the prior year. Same station broadcast cash flow increased 3 percent in 2000. For the quarter ended December 31, 2000, net revenue was $49.4 million, up 20 percent compared with net revenue of $41.1 million in the prior year. On a same station basis, net revenue increased 8 percent in the fourth quarter of 2000 compared with the prior-year period. Broadcast cash flow for the fourth quarter of 2000 increased 24 percent to $23.2 million compared with $18.6 million for the prior-year fourth quarter. Same station broadcast cash flow increased 11 percent for the same period. Broadcast cash flow is defined as operating income plus depreciation and amortization, non-cash compensation, corporate cash expenses, and non-recurring expenses. Broadcast cash flow is a measurement used by both management and the analyst community to evaluate the operating performance of media properties. "The Liberty Corporation continues its transformation to a pure play media company," commented Hayne Hipp, Chief Executive Officer of Liberty. "Although not widely recognized, Liberty has over a 70-year history of superior broadcast operations, and today's results are evidence of the same. Moving forward, we will execute on our often-stated vision of branching out as we see opportunities in broadcasting as well as a variety of other synergistic forms of media." -MORE- 3 A major group broadcaster, Liberty, through its operating subsidiary, Cosmos Broadcasting, owns fifteen network-affiliated television stations, including eight NBC affiliates (WALB-TV, Albany, Ga.; KCBD-TV, Lubbock, Tx; WAVE-TV, Louisville, Ky.; WIS-TV, Columbia, S.C.; WSFA-TV, Montgomery, Ala.; WFIE-TV, Evansville, Ind.; KPLC-TV, Lake Charles, La.; and WLBT-TV, Jackson, Miss.); five ABC affiliates (KAIT-TV, Jonesboro, Ark.; WLOX-TV, Biloxi, Miss.; WWAY-TV, Wilmington, N.C; KLTV-TV, Tyler, Tx; and KTRE-TV, the satellite affiliate of KLTV in Lufkin, Tx); and two CBS affiliates (KGTB-TV, Harlingen, Tx; and WTOL-TV, Toledo, Ohio). In addition, Cosmos owns CableVantage Inc., a cable advertising sales subsidiary; Take Ten productions, a video production facility; and Broadcast Merchandising Company, a professional broadcast equipment dealership. Cosmos has operational partnerships and equity positions in WorldNow, the leading provider of Internet technology solutions for local media companies, MyWeather, developer of innovative technologies to provide personalized weather on the web and iBlast, the nation's largest wireless data broadcast distribution network that provides a fast, cost-effective "last mile" solution for content providers and consumers. The live broadcast of The Liberty Corporation's year-end conference call will begin today at 2:00 p.m. Eastern Time. An online replay will be available approximately two hours following the conclusion of the live broadcast and will continue through March 6, 2001. A link to these events can be found at the Company's website: www.LibertyCorp.com. Forward-Looking Statements The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information contained herein or in any other written or oral statements made by, or on behalf of the Company, is or may be viewed as forward looking. The words "expect," "believe," "anticipate" or similar expressions identify forward-looking statements. Although the Company has used appropriate care in developing any such forward looking information, forward looking information involves risks and uncertainties that could significantly impact actual results. These risks and uncertainties include, but are not limited to, the following: changes in national and local markets for television advertising; changes in general economic conditions, including the performance of financial markets and interest rates; competitive, regulatory, or tax changes that affect the cost of or demand for the Company's products; and adverse litigation results. The Company undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future developments, or otherwise. -MORE- 4 THE LIBERTY CORPORATION Income Statement Information
Three Months Ended Year Ended December 31, December 31, -------------------------------- -------------------------------- (In 000's, except per share data) 2000 1999 2000 1999 ------------- -------------- ------------- -------------- Unaudited REVENUES Station revenues (net of commissions) $ 46,447 $ 38,150 $ 161,184 $ 144,044 Cable advertising and other revenues 2,949 2,994 12,488 9,956 ------------- -------------- ------------- -------------- Net revenues 49,396 41,144 173,672 154,000 ------------- -------------- ------------- -------------- EXPENSES Operating expenses 27,398 21,021 95,564 80,390 Amortization of program rights 1,060 1,478 5,852 5,855 Depreciation and amortization of intangibles 6,233 4,302 21,097 16,770 Corporate, general, and administrative expenses 4,213 1,913 12,238 8,200 ------------- -------------- ------------- -------------- Total operating expenses 38,904 28,714 134,751 111,215 Operating income 10,492 12,430 38,921 42,785 Net investment income 4,680 1,285 16,696 2,663 Interest expense 1,661 3,880 14,366 15,085 ------------- -------------- ------------- -------------- Income from continuing operations before income taxes 13,511 9,835 41,251 30,363 Provision for income taxes 4,808 3,457 16,256 11,592 ------------- -------------- ------------- -------------- Income from continuing operations 8,703 6,378 24,995 18,771 Income from discontinued operations (net of 2,502 5,395 28,563 25,798 taxes) ------------- -------------- ------------- -------------- NET INCOME $ 11,205 $ 11,773 $ 53,558 $ 44,569 ============= ============== ============= ============== DILUTED EARNINGS PER SHARE: Diluted earnings per common share from continuing operations $0.44 $0.33 $1.27 $0.92 Diluted earnings per common share from discontinued operations 0.13 0.26 1.45 1.33 ------------- -------------- ------------- -------------- Diluted earnings per common share $0.57 $0.59 $2.72 $2.25 ============= ============== ============= ============== Weighted average common dilutive shares 19,725 19,352 19,721 19,878 Actual common and common equivalent shares outstanding at end of period 19,358 19,937 19,358 19,937 RECONCILIATION OF OPERATING INCOME TO ADJUSTED BROADCAST CASH FLOW Operating income per income statement $ 10,492 $ 12,430 $ 38,921 $ 42,785 One time charges (1) 2,263 -- 3,198 -- ------------- -------------- ------------- -------------- Adjusted operating income 12,755 12,430 42,119 42,785 Add: Depreciation and amortization 6,233 4,302 21,097 16,770 Non-cash compensation 1 114 1,211 256 ------------- -------------- ------------- -------------- Operating cash flow $ 18,989 16,846 64,427 59,811 Corporate cash expenses 4,215 1,800 11,028 7,946 ------------- -------------- ------------- -------------- Broadcast cash flow $ 23,204 $ 18,646 $ 75,455 $ 67,757 ============= ============== ============= ==============
(1) Adjusted to exclude charges in 2000 related to the phase-out and winding up of the Company's direct mail operations -END- 5 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. THE LIBERTY CORPORATION By: /s/ Martha Williams ------------------------------------------ Name: Martha Williams Title: Vice President, General Counsel and Secretary February 6, 2001