0000950144-01-508437.txt : 20011119 0000950144-01-508437.hdr.sgml : 20011119 ACCESSION NUMBER: 0000950144-01-508437 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20011106 ITEM INFORMATION: FILED AS OF DATE: 20011106 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LIBERTY CORP CENTRAL INDEX KEY: 0000059229 STANDARD INDUSTRIAL CLASSIFICATION: LIFE INSURANCE [6311] IRS NUMBER: 570507055 STATE OF INCORPORATION: SC FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-05846 FILM NUMBER: 1776059 BUSINESS ADDRESS: STREET 1: 2000 WADE HAMPTON BLVD CITY: GREENVILLE STATE: SC ZIP: 29615 BUSINESS PHONE: 8646098256 MAIL ADDRESS: STREET 1: P O BOX 789 STREET 2: WADE HAMPTON BLVD CITY: GREENVILLE STATE: SC ZIP: 29602 8-K 1 g72497k1e8-k.txt THE LIBERTY CORPORATION 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) November 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.) 135 South Main Street, Greenville, SC 29601 -------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code (864) 241-5400 ----------------------------- n/a -------------------------------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) ITEM 9. REGULATION FD DISCLOSURE. [LIBERTY CORPORATION LETTERHEAD] For Further Information: Howard Schrott (864) 241-5400 LIBERTY CORPORATION REPORTS THIRD QUARTER RESULTS Greenville, SC (November 6, 2001) - The Liberty Corp. (NYSE: LC) today reported financial results for quarter ended September 30, 2001. Liberty owns and operates 15 network-affiliated television stations along with other ancillary businesses. For the quarter ended September 30, 2001, net revenue declined seven percent to $40.2 million compared with $43.3 million for the prior year. The decline in revenues is due to losses in revenue related to the events of September 11th and the fact that the same quarter in the prior year benefited from revenue related to the Olympics and political activity. For the nine-month period, net revenue increased five percent to $130.3 million from $124.3 million from the prior year. For the latest quarter, broadcast cash flow decreased 32 percent to $12.8 million from $18.9 million. For the nine months period, Broadcast Cash Flow decreased ten percent to $47.1 million from $52.2 million. Broadcast cash flow is defined as operating income plus depreciation and amortization, non-cash compensation, corporate cash expenses, non-recurring and certain other items. Broadcast Cash Flow is a commonly used measurement to evaluate the operating performance of media properties. "We are extremely proud of the manner in which our television stations served the public in covering the tragic events of September 11th. Through their tireless efforts, each of the communities we serve was kept informed around the clock," commented Hayne Hipp, Chief Executive Officer of Liberty. "Unquestionably, this type of intensive coverage comes at a cost, which has affected our operating results for the quarter. Revenue was lost and costs increased due to several days of uninterrupted news coverage. In addition, advertisers cancelled orders due to the uncertain economic conditions that followed, however, much of this business is returning in the fourth quarter." Hipp continued, "The economic fallout of these events has touched every advertising-related business, but our dominant news positions keep us uniquely positioned with our customers and a debt-free balance sheet gives us the freedom to explore growth opportunities which may arise." A major group broadcaster, Liberty owns fifteen network-affiliated television stations, including eight NBC affiliates (WAVE-TV, Louisville, KY; WIS-TV, Columbia, SC; WLBT-TV, Jackson, MS; WFIE-TV, Evansville, IN; WSFA-TV, Montgomery, AL; KCBD-TV, Lubbock, TX; WALB-TV, Albany, GA and KPLC-TV, Lake Charles, LA); five ABC affiliates (KLTV-TV, Tyler, TX; KTRE-TV, the satellite affiliate of KLTV in Lufkin, TX; WLOX-TV, Biloxi, MS; WWAY-TV, Wilmington, NC and KAIT-TV, Jonesboro, AR); and two CBS affiliates (WTOL-TV, Toledo, OH and KGBT-TV, Harlingen, TX). In addition, Liberty owns CableVantage Inc., a cable advertising sales subsidiary; Take Ten Productions, a video production facility; and Broadcast Merchandising Company, a professional broadcast equipment dealership. -1- Liberty 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. For further information about Liberty, visit the corporate website, http://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. -2- THE LIBERTY CORPORATION Income Statement Information
Three Months Ended Nine Months Ended September 30, September 30, -------------------------------- -------------------------------- (In 000's, except per share data) 2001 2000 2001 2000 ------------- -------------- -------------- -------------- Unaudited REVENUES Station revenues (net of commissions) $ 37,170 $ 40,058 $ 121,407 $ 114,737 Cable advertising and other revenues 3,003 3,234 8,885 9,539 ------------- -------------- -------------- -------------- Net revenues 40,173 43,292 130,292 124,276 ------------- -------------- -------------- -------------- EXPENSES Operating expenses 25,645 23,187 77,518 68,166 Amortization of program rights 2,021 1,704 5,957 4,792 Depreciation and amortization of intangibles 8,434 5,272 23,717 14,864 Corporate, general, and administrative expenses 3,685 2,661 9,783 8,025 ------------- -------------- -------------- -------------- Total operating expenses 39,785 32,824 116,975 95,847 Operating income 388 10,468 13,317 28,429 Net investment income (loss) (1,938) 724 3,799 12,016 Interest expense -- 4,314 -- 12,705 ------------- -------------- -------------- -------------- Income (loss) from continuing operations before income taxes (1,550) 6,878 17,116 27,740 Provision for (benefit from) income taxes (589) 2,885 6,504 11,448 ------------- -------------- -------------- -------------- Income (loss) from continuing operations (961) 3,993 10,612 16,292 Income from discontinued operations (net of taxes) -- 7,573 -- 26,061 ------------- -------------- -------------- -------------- NET INCOME (LOSS) $ (961) $ 11,566 $ 10,612 $ 42,353 ============= ============== ============== ============== DILUTED EARNINGS PER SHARE: Diluted earnings (loss) per common share from continuing operations $(0.05) $0.20 $0.54 $0.83 Diluted earnings per common share from discontinued operations -- 0.38 -- 1.32 ------------- -------------- -------------- -------------- Diluted earnings (loss) per common share $(0.05) $0.58 $0.54 $2.15 ============= ============== ============== ============== Weighted average common dilutive shares 19,526 19,736 19,658 19,721 Actual common and common equivalent shares outstanding at end of period 19,683 19,916 19,683 19,916 RECONCILIATION OF OPERATING INCOME TO ADJUSTED BROADCAST CASH FLOW Operating income per income statement $ 388 $ 10,468 $ 13,317 $ 28,429 One time charges (1) -- 461 -- 863 ------------- -------------- -------------- -------------- Adjusted operating income 388 10,929 13,317 29,292 Add: Depreciation and amortization 8,434 5,272 23,717 14,864 Adj. for network compensation due vs. accrued 248 -- 248 -- Non-cash compensation 224 648 533 1,210 ------------- -------------- -------------- -------------- Operating cash flow $ 9,294 $ 16,849 $ 37,815 $ 45,366 Corporate cash expenses 3,461 2,011 9,250 6,813 ------------- -------------- -------------- -------------- Broadcast cash flow $ 12,755 $ 18,860 $ 47,065 $ 52,179 ============= ============== ============== ==============
(1) Adjusted to exclude charges in 2000 related to the phase-out and winding up of the Company's direct mail operations -END- -3- 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 November 6, 2001