Commission
file number: 001-31311
|
Commission
file number: 000-25206
|
LIN
Television
|
|
LIN
TV Corp.
|
Corporation
|
(Exact
name of registrant as
|
(Exact
name of registrant as
|
specified
in its charter)
|
specified
in its charter)
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Delaware
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Delaware
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(State
or other jurisdiction of
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(State
or other jurisdiction of
|
incorporation
or organization)
|
incorporation
or organization)
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05-0501252
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13-3581627
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(I.R.S.
Employer
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(I.R.S.
Employer
|
Identification
No.)
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Identification
No.)
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Large
accelerated filer £
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Accelerated
filer R
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Non-accelerated filer
£
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Smaller
reporting company £
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(Do
not check if a smaller reporting
company)
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3
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4
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5
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6
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7
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20
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28
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29
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30
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30
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30
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30
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30
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30
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31
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32
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LIN
TV Corp.
|
||||||||
(unaudited)
|
||||||||
March
31,
|
December
31,
|
|||||||
2009
|
2008
|
|||||||
(in
thousands, except share data)
|
||||||||
ASSETS
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$ | 15,401 | 20,106 | |||||
Accounts
receivable, less allowance for doubtful accounts (2009 - $2,918; 2008 -
$2,761)
|
58,584 | 68,277 | ||||||
Program
rights
|
3,034 | 3,311 | ||||||
Assets
held for sale
|
234 | 430 | ||||||
Other
current assets
|
4,934 | 5,045 | ||||||
Total
current assets
|
82,187 | 97,169 | ||||||
Property
and equipment, net
|
177,195 | 180,679 | ||||||
Deferred
financing costs
|
6,716 | 8,511 | ||||||
Equity
investments
|
128 | 128 | ||||||
Program
rights
|
2,804 | 3,422 | ||||||
Goodwill
|
117,159 | 117,159 | ||||||
Broadcast
licenses and other intangible assets, net
|
430,121 | 430,142 | ||||||
Assets
held for sale
|
6,914 | 8,872 | ||||||
Other
assets
|
4,646 | 6,512 | ||||||
Total
assets
|
$ | 827,870 | $ | 852,594 | ||||
LIABILITIES,
PREFERRED STOCK AND STOCKHOLDERS' EQUITY
|
||||||||
Current
liabilities:
|
||||||||
Current
portion of long-term debt
|
$ | 15,900 | $ | 15,900 | ||||
Accounts
payable
|
4,068 | 7,988 | ||||||
Accrued
expenses
|
52,709 | 56,701 | ||||||
Program
obligations
|
12,189 | 10,109 | ||||||
Liabilities
held for sale
|
443 | 429 | ||||||
Total
current liabilities
|
85,309 | 91,127 | ||||||
Long-term
debt, excluding current portion
|
670,155 | 727,453 | ||||||
Deferred
income taxes, net
|
161,696 | 141,702 | ||||||
Program
obligations
|
4,177 | 5,336 | ||||||
Liabilities
held for sale
|
244 | 343 | ||||||
Other
liabilities
|
66,236 | 68,883 | ||||||
Total
liabilities
|
987,817 | 1,034,844 | ||||||
Commitments
and Contingenices (Note 11)
|
||||||||
Stockholders'
equity:
|
||||||||
Class
A common stock, $0.01 par value, 100,000,000 shares authorized,
29,714,936 and 29,733,672 shares at March 31, 2009 and December 31,
2008, respectively, issued and outstanding
|
294 | 294 | ||||||
Class
B common stock, $0.01 par value, 50,000,000 shares authorized,
23,502,059 shares at March 31, 2009 and December 31, 2008, issued
and outstanding; convertible into an equal number of shares of Class A
or Class C common stock
|
235 | 235 | ||||||
Class
C common stock, $0.01 par value, 50,000,000 shares authorized, 2
shares at March 31, 2009 and December 31, 2008, respectively, issued and
outstanding; convertible into an equal number of shares of Class A common
stock
|
- | - | ||||||
Treasury
stock, 1,806,428 shares of Class A common stock at March 31, 2009
and December 31, 2008, at cost
|
(18,005 | ) | (18,005 | ) | ||||
Additional
paid-in capital
|
1,102,508 | 1,101,919 | ||||||
Accumulated
deficit
|
(1,214,368 | ) | (1,239,090 | ) | ||||
Accumulated
other comprehensive loss
|
(34,111 | ) | (34,634 | ) | ||||
Total
stockholders' deficit
|
(163,447 | ) | (189,281 | ) | ||||
Preferred
stock of Banks Broadcasting, Inc., $0.01 par value, 173,822 shares
issued and outstanding at March 31, 2009 and December 31, 2008,
respectively (Note 1)
|
3,500 | 7,031 | ||||||
Total
deficit
|
(159,947 | ) | (182,250 | ) | ||||
Total
liabilities, preferred stock and stockholders' deficit
|
$ | 827,870 | $ | 852,594 | ||||
The
accompanying notes are an integral part of the unaudited consolidated
financial statements.
|
LIN
TV Corp.
|
||||||||
(unaudited)
|
||||||||
Three
months ended March 31,
|
||||||||
2009
|
2008
|
|||||||
(in
thousands, except share data)
|
||||||||
Net
revenues
|
$ | 74,475 | $ | 93,064 | ||||
Operating
costs and expenses:
|
||||||||
Direct
operating
|
26,915 | 30,066 | ||||||
Selling,
general and administrative
|
25,616 | 28,575 | ||||||
Amortization
of program rights
|
6,332 | 6,176 | ||||||
Corporate
|
4,418 | 5,030 | ||||||
Depreciation
|
8,126 | 7,449 | ||||||
Amortization
of intangible assets
|
20 | 93 | ||||||
(Gain)
loss from asset dispositions
|
(1,709 | ) | 101 | |||||
Operating
income
|
4,757 | 15,574 | ||||||
Other
(income) expense:
|
||||||||
Interest
expense, net
|
10,922 | 14,391 | ||||||
Share
of income in equity investments
|
- | (451 | ) | |||||
Loss
(gain) on derivative instruments
|
220 | (375 | ) | |||||
(Income)
loss on extinguishment of debt
|
(50,149 | ) | 100 | |||||
Other,
net
|
269 | 449 | ||||||
Total
other (income) expense, net
|
(38,738 | ) | 14,114 | |||||
Income
from continuing operations before provision for income
taxes
|
43,495 | 1,460 | ||||||
Provision
for income taxes
|
18,489 | 585 | ||||||
Income
from continuing operations
|
25,006 | 875 | ||||||
Discontinued
operations:
|
||||||||
(Loss)
income from discontinued operations, net of (benefit from)
provision for income taxes of $(659) and $61 for the three months
ended March 31, 2009 and 2008, respectively
|
(284 | ) | 588 | |||||
Net
income
|
$ | 24,722 | $ | 1,463 | ||||
Basic
income per common share:
|
||||||||
Income
from continuing operations
|
$ | 0.49 | $ | 0.02 | ||||
(Loss)
income from discontinued operations, net of tax
|
(0.01 | ) | 0.01 | |||||
Net
income
|
$ | 0.48 | $ | 0.03 | ||||
|
||||||||
Weighted
- average number of common shares outstanding used in calculating
basic income per common share
|
51,114 | 50,597 | ||||||
Diluted
income per common share:
|
||||||||
Income
from continuing operations
|
$ | 0.49 | $ | 0.02 | ||||
(Loss)
income from discontinued operations, net of tax
|
(0.01 | ) | 0.01 | |||||
Net
income
|
$ | 0.48 | $ | 0.03 | ||||
|
||||||||
Weighted
- average number of common shares outstandingused in calculating
diluted income per common share
|
51,122 | 51,613 | ||||||
The
accompanying notes are an integral part of the unaudited consolidated
financial statements.
|
LIN
TV Corp.
|
||||||||||||||||||||||||||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||||||||||||||||||||||||||
(in
thousands, except share data)
|
||||||||||||||||||||||||||||||||||||||||||||
Common
Stock
|
|
Treasury Stock (at cost) |
Additional
Paid-In Capital
|
Accumulated
Deficit
|
Accumulated
Other Comprehensive Loss
|
Total
Stockholders' Deficit
|
Preferred
Stock of Banks Broadcasting
|
Comprehensive
Income
|
||||||||||||||||||||||||||||||||||||
Class
A
|
Class
B
|
Class
C
|
||||||||||||||||||||||||||||||||||||||||||
Total
Deficit
|
Amount
|
Amount
|
Amount
|
|||||||||||||||||||||||||||||||||||||||||
Balance
at December 31, 2008
|
$ | (182,250 | ) | $ | 294 | $ | 235 | $ | - | $ | (18,005 | ) | $ | 1,101,919 | $ | (1,239,090 | ) | $ | (34,634 | ) | $ | (189,281 | ) | $ | 7,031 | $ | ||||||||||||||||||
Amortization
of prior service cost, net of tax of $3
|
4 | - | - | - | - | - | - | 4 | 4 | - | 4 | |||||||||||||||||||||||||||||||||
Amortization
of net loss, net of tax of $52
|
78 | - | - | - | - | - | - | 78 | 78 | - | 78 | |||||||||||||||||||||||||||||||||
Unrealized
loss on cash flow hedge, net of tax of $293
|
441 | - | - | - | - | - | - | 441 | 441 | - | 441 | |||||||||||||||||||||||||||||||||
Stock-based
compensation, continuing operations
|
589 | - | - | - | - | 589 | - | - | 589 | - | ||||||||||||||||||||||||||||||||||
Restricted
shares cancelled
|
- | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Net
income (loss)
|
21,191 | - | - | - | - | - | 24,722 | - | 24,722 | (3,531 | ) | 24,722 | ||||||||||||||||||||||||||||||||
Comprehensive income - March 31, 2009 |
|
$ | 25,245 | |||||||||||||||||||||||||||||||||||||||||
Balance
at March 31, 2009
|
$ | (159,947 | ) | $ | 294 | $ | 235 | $ | - | $ | (18,005 | ) | $ | 1,102,508 | $ | (1,214,368 | ) | $ | (34,111 | ) | $ | (163,447 | ) | $ | 3,500 | |||||||||||||||||||
The
accompanying notes are an integral part of the unaudited consolidated
financial statements
|
LIN
TV Corp.
|
||||||||
(unaudited)
|
||||||||
Three
Months Ended March 31,
|
||||||||
2009
|
2008
|
|||||||
(in
thousands)
|
||||||||
OPERATING
ACTIVITIES:
|
||||||||
Net
income
|
$ | 24,722 | $ | 1,463 | ||||
Loss
(income) from discontinued operations
|
284 | (588 | ) | |||||
Adjustment
to reconcile net income to net cash provided by operating
activities:
|
||||||||
Depreciation
|
8,126 | 7,449 | ||||||
Amortization
of intangible assets
|
20 | 93 | ||||||
Amortization
of financing costs and note discounts
|
977 | 2,126 | ||||||
Amortization
of program rights
|
6,332 | 6,176 | ||||||
Program
payments
|
(4,582 | ) | (7,005 | ) | ||||
(Gain)
loss on extinguishment of debt
|
(50,149 | ) | 100 | |||||
Loss
(gain) on derivative instruments
|
220 | (375 | ) | |||||
Share
of income in equity investments
|
- | (451 | ) | |||||
Deferred
income taxes, net
|
18,758 | (744 | ) | |||||
Stock-based
compensation
|
589 | 1,413 | ||||||
(Gain)
loss from asset dispositions
|
(1,709 | ) | 101 | |||||
Other,
net
|
2,291 | 634 | ||||||
Changes
in operating assets and liabilities, net of acquisitions and
disposals:
|
||||||||
Accounts
receivable
|
9,693 | 10,483 | ||||||
Other
assets
|
1,977 | 1,201 | ||||||
Accounts
payable
|
(3,920 | ) | (7,503 | ) | ||||
Accrued
interest expense
|
5,751 | 9,965 | ||||||
Other
accrued expenses
|
(15,802 | ) | (1,428 | ) | ||||
Net
cash provided by operating activities, continuing
operations
|
3,578 | 23,110 | ||||||
Net
cash used in operating activities, discontinued operations
|
(101 | ) | (701 | ) | ||||
Net
cash provided by operating activities
|
3,477 | 22,409 | ||||||
INVESTING
ACTIVITIES:
|
||||||||
Capital
expenditures
|
(1,852 | ) | (1,665 | ) | ||||
Distributions
from equity investments
|
- | 1,019 | ||||||
Other
investments, net
|
- | (97 | ) | |||||
Net
cash used in investing activities, continuing operations
|
(1,852 | ) | (743 | ) | ||||
Net
cash provided by investing activities, discontinued
operations
|
- | 1,817 | ||||||
Net
cash (used in) provided by investing activities
|
(1,852 | ) | 1,074 | |||||
FINANCING
ACTIVITIES:
|
||||||||
Net
proceeds on exercises of employee stock options and phantom stock units
and employee stock purchase plan issuances
|
- | 456 | ||||||
Proceeds
from borrowings on long-term debt
|
66,000 | - | ||||||
Principal
payments on long-term debt
|
(72,330 | ) | (22,075 | ) | ||||
Net
cash used in financing activities, continuing operations
|
(6,330 | ) | (21,619 | ) | ||||
Net
cash used in financing activities
|
(6,330 | ) | (21,619 | ) | ||||
Net
(decrease) increase in cash and cash equivalents
|
(4,705 | ) | 1,864 | |||||
Cash
and cash equivalents at the beginning of the period
|
20,106 | 40,031 | ||||||
Cash
and cash equivalents at the end of the period
|
$ | 15,401 | $ | 41,895 | ||||
Less
cash and cash equivalents from discontinued operations, end of the
period
|
$ | - | $ | - | ||||
Cash
and cash equivalents from continuing operations, end of the
period
|
$ | 15,401 | $ | 41,895 | ||||
The
accompanying notes are an integral part of the unaudited consolidated
financial statements.
|
Three
Months Ended March 31,
|
||||||||
2009
|
2008
|
|||||||
Numerator
for income per common share calculation:
|
||||||||
Income
available to common shareholders from continuing operations, basic and
diluted
|
$ | 25,006 | $ | 875 | ||||
(Loss)
income available to common shareholders from discontinued operations,
basic and diluted
|
(284 | ) | 588 | |||||
Net
income available to common shareholders, diluted
|
$ | 24,722 | $ | 1,463 | ||||
Denominator
for income per common share calculation:
|
||||||||
Weighted-average
common shares, basic
|
51,114 | 50,597 | ||||||
Effect
of dilutive securities:
|
||||||||
Stock
options
|
8 | 685 | ||||||
Restricted
stock
|
- | 331 | ||||||
Weighted-average
common shares, diluted
|
51,122 | 51,613 |
March
31, 2009
|
December
31, 2008
|
|||||||
Program
rights
|
$ | 204 | $ | 193 | ||||
Other
current assets
|
30 | 237 | ||||||
Total
current assets
|
234 | 430 | ||||||
Property
and equipment, net
|
775 | 804 | ||||||
Program
rights
|
265 | 324 | ||||||
Intangible
assets, net
|
5,874 | 7,744 | ||||||
Total
assets
|
$ | 7,148 | $ | 9,302 | ||||
Other
accrued expenses
|
$ | 233 | $ | 270 | ||||
Program
obligations
|
210 | 159 | ||||||
Total
current liabilities
|
443 | 429 | ||||||
Program
obligations
|
244 | 343 | ||||||
Total
liabilities
|
$ | 687 | $ | 772 |
Three
Months Ended March 31,
|
||||||||
2009
|
2008
|
|||||||
Net
revenues
|
$ | 632 | $ | 785 | ||||
Operating
(loss) income
|
(1,998 | ) | 1,280 | |||||
Net
(loss) income
|
(284 | ) | 588 |
Three
Months Ended March 31,
|
||||||||
2009
|
2008
|
|||||||
Cash
distributions to SVH
|
$ | 16,252 | $ | 21,446 | ||||
Income
to SVH
|
$ | 2,728 | $ | 18,703 | ||||
Other
expense, net (primarily interest on the GECC note)
|
(16,491 | ) | (16,491 | ) | ||||
Net
(loss) income of SVH
|
$ | (13,763 | ) | $ | 2,212 | |||
Cash
distributions to us
|
$ | - | $ | 1,019 |
March
31, 2009
|
December
31, 2008
|
|||||||||||||||
Gross
Carrying Amount
|
Accumulated
Amortization
|
Gross
Carrying Amount
|
Accumulated
Amortization
|
|||||||||||||
Goodwill
|
$ | 117,159 | $ | - | $ | 117,159 | $ | - | ||||||||
Broadcast
licenses
|
429,024 | - | 429,024 | - | ||||||||||||
Intangible
assets suject to amortization (1)
|
7,796 | (6,699 | ) | 7,796 | (6,678 | ) | ||||||||||
Total
intangible assets
|
$ | 553,979 | $ | (6,699 | ) | $ | 553,979 | $ | (6,678 | ) |
|
(1)
|
Intangibles subject to
amortization are amortized on a straight line basis and include acquired
advertising contracts, advertiser lists, advertiser relationships,
favorable operating leases, tower rental income leases, option
agreements and network
affiliations.
|
March
31, 2009
|
December
31, 2008
|
|||||||
Credit
Facility:
|
||||||||
Revolving
credit loans
|
$ | 201,000 | $ | 135,000 | ||||
Term
loans
|
73,900 | 77,875 | ||||||
6½%
Senior Subordinated Notes due 2013
|
275,883 | 355,583 | ||||||
$141,316
and $183,285, 6½% Senior Subordinated Notes due 2013 - Class B, net of
discount of $6,044 and $8,390 at March 31, 2009 and December 31,
2008, respectively
|
135,272 | 174,895 | ||||||
Total debt
|
686,055 | 743,353 | ||||||
Less
current portion
|
15,900 | 15,900 | ||||||
Total
long-term debt
|
$ | 670,155 | $ | 727,453 |
Loss
(Gain) on Derivative Instruments
|
Comprehensive
Loss (Income), Net of Tax
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Mark-to-Market
Adjustments on:
|
||||||||||||||||
2.50%
Exchangeable Senior Subordinated Debentures
|
$ | - | $ | (375 | ) | $ | - | $ | - | |||||||
2006
interest rate hedge
|
220 | - | 441 | (1,516 | ) | |||||||||||
$ | 220 | $ | (375 | ) | $ | 441 | $ | (1,516 | ) |
March
31, 2009
|
December
31, 2008
|
|||||||
2006
interest rate hedge
|
$ | 5,979 | $ | 6,493 |
Quoted
prices in active markets
|
Significant
observable inputs
|
Signficant
unobservable inputs
|
||||||||||
(Level
1)
|
(Level
2)
|
(Level
3)
|
Total
|
|||||||||
Assets:
|
||||||||||||
Deferred
compensation related investments
|
$ | 2,051 | $ | $ | $ | 2,051 | ||||||
Interest
rate swaps
|
5,979 | 5,979 | ||||||||||
Deferred
compensation related liabilities
|
2,051 | 2,051 |
Three
Months Ended March 31,
|
||||||||
2009
|
2008
|
|||||||
Net
periodic pension benefit cost:
|
||||||||
Service
cost
|
$ | 400 | $ | 538 | ||||
Interest
cost
|
1,615 | 1,592 | ||||||
Expected
return on plan assets
|
(1,687 | ) | (1,705 | ) | ||||
Amortization
of prior service cost
|
31 | 31 | ||||||
Amortization
of net loss
|
196 | 48 | ||||||
Curtailment
|
438 | - | ||||||
Net
periodic benefit cost
|
$ | 993 | $ | 504 | ||||
Contributions
|
||||||||
401(k)
Plan
|
$ | 272 | $ | 313 | ||||
Retirement
plans
|
- | 753 | ||||||
Total
contributions
|
$ | 272 | $ | 1,066 |
Balance
as of
December
31, 2008
|
Three
Months Ended March 31, 2009
|
Balance
as of
March
31, 2009
|
||||||||||||||
Benefit
|
Payments
|
|||||||||||||||
Severance
and related
|
$ | 3,493 | $ | - | $ | 2,789 | $ | 704 | ||||||||
Contractual
and other
|
5,868 | - | 4,977 | 891 | ||||||||||||
Total
|
$ | 9,361 | $ | - | $ | 7,766 | $ | 1,595 |
|
·
|
GECC,
after exhausting all remedies against the joint venture, could enforce its
rights under the guarantee, which could cause LIN TV to determine that LIN
Television should seek to sell material assets owned by it in order to
satisfy LIN TV’s obligations under the
guarantee;
|
|
·
|
GECC’s
initiation of proceedings against LIN TV under the guarantee, if they
result in material adverse consequences to LIN Television, would cause an
acceleration of LIN Television’s credit facility and other outstanding
indebtedness; and
|
|
·
|
if
the GECC Note is prepaid because of an acceleration on default or
otherwise, we would incur a substantial tax liability of approximately
$271.3 million related to our deferred gain associated with the formation
of the joint venture.
|
Three
Months Ended March 31,
|
||||||||||||||||
2009
|
2008
|
%
change
|
%
of Net revenues
|
|||||||||||||
Local
time sales
|
$ | 50,402 | 64,244 |
(22)%
|
68%
|
|||||||||||
National
time sales
|
21,945 | 31,331 |
(30)%
|
29%
|
||||||||||||
Political
time sales
|
519 | 3,200 |
(84)%
|
1%
|
||||||||||||
Digital
revenues
|
8,935 | 4,904 |
82%
|
12%
|
||||||||||||
Network
compensation
|
923 | 904 |
2%
|
|
1%
|
|||||||||||
Barter
revenues
|
884 | 1,308 |
(32)%
|
1%
|
||||||||||||
Other
revenues
|
991 | 749 |
32%
|
1%
|
||||||||||||
Agency
commissions
|
(10,124 | ) | (13,576 | ) |
(25)%
|
(13)%
|
||||||||||
Net
revenues
|
74,475 | 93,064 |
(20)%
|
100%
|
||||||||||||
Operating
costs and expenses:
|
||||||||||||||||
Direct
operating
|
26,915 | 30,066 |
(10)%
|
|||||||||||||
Selling,
general and administrative
|
25,616 | 28,575 |
(10)%
|
|||||||||||||
Amortization
of program rights
|
6,332 | 6,176 |
3%
|
|||||||||||||
Corporate
|
4,418 | 5,030 |
(12)%
|
|||||||||||||
Depreciation
|
8,126 | 7,449 |
9%
|
|||||||||||||
Amortization
of intangible assets
|
20 | 93 |
(78)%
|
|||||||||||||
Loss
(gain) from asset sales
|
(1,709 | ) | 101 |
(1,792)%
|
||||||||||||
Operating
(loss) income
|
$ | 4,757 | $ | 15,574 |
(69)%
|
Three
Months Ended March 31,
|
||||||||
2009
|
2008
|
|||||||
Components
of interest expense
|
||||||||
Credit
Facility
|
$ | 1,811 | $ | 2,870 | ||||
6½%
Senior Subordinated Notes
|
5,184 | 6,337 | ||||||
6½%
Senior Subordinated Notes -- Class B
|
3,152 | 3,689 | ||||||
2.50%
Exchangeable Senior Subordinated Debentures
|
- | 1,880 | ||||||
Other
interest costs and (interest income)
|
775 | (385 | ) | |||||
Total
interest expense, net
|
$ | 10,922 | $ | 14,391 |
Three
Months Ended March 31,
|
Increase
(Decrease)
|
|||||||||||
2009
|
2008
|
|||||||||||
Cash
provided by operating activities
|
$ | 3,477 | $ | 22,409 | $ | (18,932 | ) | |||||
Cash
(used in) provided by investing activities
|
(1,852 | ) | 1,074 | (2,926 | ) | |||||||
Cash
used in financing activities
|
(6,330 | ) | (21,619 | ) | 15,289 | |||||||
Net
(decrease) increase in cash and cash equivalents
|
$ | (4,705 | ) | $ | 1,864 | $ | (6,569 | ) |
March
31, 2009
|
December
31, 2008
|
|||||||
Credit
Facility:
|
||||||||
Revolving
credit loans
|
$ | 201,000 | $ | 135,000 | ||||
Term
loans
|
73,900 | 77,875 | ||||||
6½%
Senior Subordinated Notes due 2013
|
275,883 | 355,583 | ||||||
$141,316
and $183,285, 6½% Senior Subordinated Notes due 2013 - Class B, net of
discount of $6,044 and $8,390 at March 31, 2009 and December 31,
2008, respectively
|
135,272 | 174,895 | ||||||
Total debt
|
686,055 | 743,353 | ||||||
Less
current portion
|
15,900 | 15,900 | ||||||
Total
long-term debt
|
$ | 670,155 | $ | 727,453 |
3.1
|
Second
Amended and Restated Certificate of Incorporation of LIN TV Corp., as
amended (filed as Exhibit 3.1 to our Quarterly Report on Form 10-Q filed
as of August 9, 2004 (File Nos. 001-31311 and 000-25206) and incorporated
by reference herein)
|
3.2
|
Third
Amended and Restated Bylaws of LIN TV Corp., filed as Exhibit 3.2 (filed
as Exhibit 3.2 to our Report on Form 10-K filed as of March 14, 2008 (File
Nos. 001-31311 and 000-25206) and incorporated by reference
herein).
|
3.3
|
Restated
Certificate of Incorporation of LIN Television Corporation (filed as
Exhibit 3.1 to the Quarterly Report on Form 10-Q of LIN TV Corp. and LIN
Television Corporation for the fiscal quarter ended June 30, 2003 (File
No. 000-25206) and incorporated by reference herein)
|
4.1
|
Specimen
of stock certificate representing LIN TV Corp. Class A Common stock, par
value $.01 per share (filed as Exhibit 4.1 to LIN TV Corp.’s Registration
Statement on Form S-1 (Registration No. 333-83068) and incorporated by
reference herein).
|
34 | ||||
34 | ||||
35 | ||||
36 | ||||
37 | ||||
38 |
LIN
Television Corporation
|
||||||||
(unaudited)
|
||||||||
March
31,
|
December
31,
|
|||||||
2009
|
2008
|
|||||||
(in
thousands, except share data)
|
||||||||
ASSETS
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$ | 15,401 | 20,106 | |||||
Accounts
receivable, less allowance for doubtful accounts (2009 - $2,918; 2008 -
$2,761)
|
58,584 | 68,277 | ||||||
Program
rights
|
3,034 | 3,311 | ||||||
Assets
held for sale
|
234 | 430 | ||||||
Other
current assets
|
4,934 | 5,045 | ||||||
Total
current assets
|
82,187 | 97,169 | ||||||
Property
and equipment, net
|
177,195 | 180,679 | ||||||
Deferred
financing costs
|
6,716 | 8,511 | ||||||
Equity
investments
|
128 | 128 | ||||||
Program
rights
|
2,804 | 3,422 | ||||||
Goodwill
|
117,159 | 117,159 | ||||||
Broadcast
licenses and other intangible assets, net
|
430,121 | 430,142 | ||||||
Assets
held for sale
|
6,914 | 8,872 | ||||||
Other
assets
|
4,646 | 6,512 | ||||||
Total
assets
|
$ | 827,870 | $ | 852,594 | ||||
LIABILITIES,
PREFERRED STOCK AND STOCKHOLDERS' EQUITY
|
||||||||
Current
liabilities:
|
||||||||
Current
portion of long-term debt
|
$ | 15,900 | $ | 15,900 | ||||
Accounts
payable
|
4,068 | 7,988 | ||||||
Accrued
expenses
|
52,709 | 56,701 | ||||||
Program
obligations
|
12,189 | 10,109 | ||||||
Liabilities
held for sale
|
443 | 429 | ||||||
Total
current liabilities
|
85,309 | 91,127 | ||||||
Long-term
debt, excluding current portion
|
670,155 | 727,453 | ||||||
Deferred
income taxes, net
|
161,696 | 141,702 | ||||||
Program
obligations
|
4,177 | 5,336 | ||||||
Liabilities
held for sale
|
244 | 343 | ||||||
Other
liabilities
|
66,236 | 68,883 | ||||||
Total
liabilities
|
987,817 | 1,034,844 | ||||||
Commitments
and Contingenices (Note 11)
|
||||||||
Stockholders'
equity:
|
||||||||
Common stock, $0.00 par value, 1,000 shares outstanding | - | - | ||||||
Investment
in parent company's stock, at cost
|
(18,005 | ) | (18,005 | ) | ||||
Additional
paid-in capital
|
1,103,037 | 1,102,448 | ||||||
Accumulated
deficit
|
(1,214,368 | ) | (1,239,090 | ) | ||||
Accumulated
other comprehensive loss
|
(34,111 | ) | (34,634 | ) | ||||
Total
stockholders' deficit
|
(163,447 | ) | (189,281 | ) | ||||
Preferred
stock of Banks Broadcasting, Inc., $0.01 par value, 173,822 shares
issued and
outstanding at March 31, 2009 and December 31, 2008, respectively (Note
1)
|
3,500 | 7,031 | ||||||
Total
deficit
|
(159,947 | ) | (182,250 | ) | ||||
Total
liabilities, preferred stock and stockholders' deficit
|
$ | 827,870 | $ | 852,594 | ||||
The
accompanying notes are an integral part of the unaudited consolidated
financial statements.
|
LIN
Television Corporation
|
||||||||
(unaudited)
|
||||||||
Three
months ended March 31,
|
||||||||
2009
|
2008
|
|||||||
(in
thousands, except share data)
|
||||||||
Net
revenues
|
$ | 74,475 | $ | 93,064 | ||||
Operating
costs and expenses:
|
||||||||
Direct
operating
|
26,915 | 30,066 | ||||||
Selling,
general and administrative
|
25,616 | 28,575 | ||||||
Amortization
of program rights
|
6,332 | 6,176 | ||||||
Corporate
|
4,418 | 5,030 | ||||||
Depreciation
|
8,126 | 7,449 | ||||||
Amortization
of intangible assets
|
20 | 93 | ||||||
(Gain)
loss from asset dispositions
|
(1,709 | ) | 101 | |||||
Operating
income
|
4,757 | 15,574 | ||||||
Other
(income) expense:
|
||||||||
Interest
expense, net
|
10,922 | 14,391 | ||||||
Share
of income in equity investments
|
- | (451 | ) | |||||
Loss
(gain) on derivative instruments
|
220 | (375 | ) | |||||
(Income)
loss on extinguishment of debt
|
(50,149 | ) | 100 | |||||
Other,
net
|
269 | 449 | ||||||
Total
other (income) expense, net
|
(38,738 | ) | 14,114 | |||||
Income
from continuing operations before provision for income
taxes
|
43,495 | 1,460 | ||||||
Provision
for income taxes
|
18,489 | 585 | ||||||
Income
from continuing operations
|
25,006 | 875 | ||||||
Discontinued
operations:
|
||||||||
(Loss)
income from discontinued operations, net of (benefit from) provision for income
taxes of $(659) and $61 for the three months ended March 31, 2009 and
2008, respectively
|
(284 | ) | 588 | |||||
Net
income
|
$ | 24,722 | $ | 1,463 | ||||
The
accompanying notes are an integral part of the unaudited consolidated
financial statements.
|
LIN
Television Corporation
|
||||||||||||||||||||||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||||||||||||||||||||||
(in
thousands, except share data)
|
||||||||||||||||||||||||||||||||||||||||
Common
Stock
|
Investment
in Parent Company's Common Stock, at cost
|
Additional
Paid-In Capital
|
Accumulated
Deficit
|
Accumulated
Other Comprehensive Loss
|
Total
Stockholders' Deficit
|
Preferred
Stock of Banks Broadcasting
|
Comprehensive
Income
|
|||||||||||||||||||||||||||||||||
Total
Deficit
|
Shares
|
Amount
|
||||||||||||||||||||||||||||||||||||||
Balance
at December 31, 2008
|
$ | (182,250 | ) | 1,000 | $ | - | $ | (18,005 | ) | $ | 1,102,448 | $ | (1,239,090 | ) | $ | (34,634 | ) | $ | (189,281 | ) | $ | 7,031 | $ | |||||||||||||||||
Amortization
of prior service cost, net of tax of $3
|
4 | - | - | - | - | - | 4 | 4 | - | 4 | ||||||||||||||||||||||||||||||
Amortization
of net loss, net of tax of $52
|
78 | - | - | - | - | - | 78 | 78 | - | 78 | ||||||||||||||||||||||||||||||
Unrealized
loss on cash flow hedge, net of tax of $293
|
441 | - | - | - | - | - | 441 | 441 | - | 441 | ||||||||||||||||||||||||||||||
Stock-based
compensation, continuing operations
|
589 | - | - | 589 | - | - | 589 | - | ||||||||||||||||||||||||||||||||
Restricted
shares cancelled
|
- | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Net
income (loss)
|
21,291 | - | - | - | - | 24,722 | - | 24,722 | (3,531 | ) | 24,722 | |||||||||||||||||||||||||||||
Comprehensive
income - March 31, 2009
|
$ | 25,245 | ||||||||||||||||||||||||||||||||||||||
Balance
at March 31, 2009
|
$ | (159,947 | ) | 1,000 | $ | - | $ | (18,005 | ) | $ | 1,103,037 | $ | (1,214,368 | ) | $ | (34,111 | ) | $ | (163,447 | ) | $ | 3,500 | ||||||||||||||||||
The
accompanying notes are an integral part of the unaudited consolidated
financial statements
|
LIN
Television Corporation
|
||||||||
(unaudited)
|
||||||||
Three
Months Ended March 31,
|
||||||||
2009
|
2008
|
|||||||
(in
thousands)
|
||||||||
OPERATING
ACTIVITIES:
|
||||||||
Net
income
|
$ | 24,722 | $ | 1,463 | ||||
Loss
(income) from discontinued operations
|
284 | (588 | ) | |||||
Adjustment
to reconcile net income to net cash provided by operating
activities:
|
||||||||
Depreciation
|
8,126 | 7,449 | ||||||
Amortization
of intangible assets
|
20 | 93 | ||||||
Amortization
of financing costs and note discounts
|
977 | 2,126 | ||||||
Amortization
of program rights
|
6,332 | 6,176 | ||||||
Program
payments
|
(4,582 | ) | (7,005 | ) | ||||
(Gain)
loss on extinguishment of debt
|
(50,149 | ) | 100 | |||||
Loss
(gain) on derivative instruments
|
220 | (375 | ) | |||||
Share
of income in equity investments
|
- | (451 | ) | |||||
Deferred
income taxes, net
|
18,758 | (744 | ) | |||||
Stock-based
compensation
|
589 | 1,413 | ||||||
(Gain)
loss from asset dispositions
|
(1,709 | ) | 101 | |||||
Other,
net
|
2,291 | 634 | ||||||
Changes
in operating assets and liabilities, net of acquisitions and
disposals:
|
||||||||
Accounts
receivable
|
9,693 | 10,483 | ||||||
Other
assets
|
1,977 | 1,201 | ||||||
Accounts
payable
|
(3,920 | ) | (7,503 | ) | ||||
Accrued
interest expense
|
5,751 | 9,965 | ||||||
Other
accrued expenses
|
(15,802 | ) | (1,428 | ) | ||||
Net
cash provided by operating activities, continuing
operations
|
3,578 | 23,110 | ||||||
Net
cash used in operating activities, discontinued operations
|
(101 | ) | (701 | ) | ||||
Net
cash provided by operating activities
|
3,477 | 22,409 | ||||||
INVESTING
ACTIVITIES:
|
||||||||
Capital
expenditures
|
(1,852 | ) | (1,665 | ) | ||||
Distributions
from equity investments
|
- | 1,019 | ||||||
Other
investments, net
|
- | (97 | ) | |||||
Net
cash used in investing activities, continuing operations
|
(1,852 | ) | (743 | ) | ||||
Net
cash provided by investing activities, discontinued
operations
|
- | 1,817 | ||||||
Net
cash (used in) provided by investing activities
|
(1,852 | ) | 1,074 | |||||
FINANCING
ACTIVITIES:
|
||||||||
Net
proceeds on exercises of employee stock options and phantom stock units and
employee stock
purchase plan issuances
|
- | 456 | ||||||
Proceeds
from borrowings on long-term debt
|
66,000 | - | ||||||
Principal
payments on long-term debt
|
(72,330 | ) | (22,075 | ) | ||||
Net
cash used in financing activities, continuing operations
|
(6,330 | ) | (21,619 | ) | ||||
Net
cash used in financing activities
|
(6,330 | ) | (21,619 | ) | ||||
Net
(decrease) increase in cash and cash equivalents
|
(4,705 | ) | 1,864 | |||||
Cash
and cash equivalents at the beginning of the period
|
20,106 | 40,031 | ||||||
Cash
and cash equivalents at the end of the period
|
$ | 15,401 | $ | 41,895 | ||||
Less
cash and cash equivalents from discontinued operations, end of the
period
|
$ | - | $ | - | ||||
Cash
and cash equivalents from continuing operations, end of the
period
|
$ | 15,401 | $ | 41,895 | ||||
The
accompanying notes are an integral part of the unaudited consolidated
financial statements.
|
March
31, 2009
|
December
31, 2008
|
|||||||
Program
rights
|
$ | 204 | $ | 193 | ||||
Other
current assets
|
30 | 237 | ||||||
Total
current assets
|
234 | 430 | ||||||
Property
and equipment, net
|
775 | 804 | ||||||
Program
rights
|
265 | 324 | ||||||
Intangible
assets, net
|
5,874 | 7,744 | ||||||
Total
assets
|
$ | 7,148 | $ | 9,302 | ||||
Other
accrued expenses
|
$ | 233 | $ | 270 | ||||
Program
obligations
|
210 | 159 | ||||||
Total
current liabilities
|
443 | 429 | ||||||
Program
obligations
|
244 | 343 | ||||||
Total
liabilities
|
$ | 687 | $ | 772 |
Three
Months Ended March 31,
|
||||||||
2009
|
2008
|
|||||||
Net
revenues
|
$ | 632 | $ | 785 | ||||
Operating
(loss) income
|
(1,998 | ) | 1,280 | |||||
Net
(loss) income
|
(284 | ) | 588 |
Three
Months Ended March 31,
|
||||||||
2009
|
2008
|
|||||||
Cash
distributions to SVH
|
$ | 16,252 | $ | 21,446 | ||||
Income
to SVH
|
$ | 2,728 | $ | 18,703 | ||||
Other
expense, net (primarily interest on the GECC note)
|
(16,491 | ) | (16,491 | ) | ||||
Net
(loss) income of SVH
|
$ | (13,763 | ) | $ | 2,212 | |||
Cash
distributions to us
|
$ | - | $ | 1,019 |
March
31, 2009
|
December
31, 2008
|
|||||||||||||||
Gross
Carrying Amount
|
Accumulated
Amortization
|
Gross
Carrying Amount
|
Accumulated
Amortization
|
|||||||||||||
Goodwill
|
$ | 117,159 | $ | - | $ | 117,159 | $ | - | ||||||||
Broadcast
licenses
|
429,024 | - | 429,024 | - | ||||||||||||
Intangible
assets suject to amortization (1)
|
7,796 | (6,699 | ) | 7,796 | (6,678 | ) | ||||||||||
Total
intangible assets
|
$ | 553,979 | $ | (6,699 | ) | $ | 553,979 | $ | (6,678 | ) |
|
(1)
|
Intangibles subject to
amortization are amortized on a straight line basis and include acquired
advertising contracts, advertiser lists, advertiser relationships,
favorable operating leases, tower rental income leases, option
agreements and network
affiliations.
|
March
31, 2009
|
December
31, 2008
|
|||||||
Credit
Facility:
|
||||||||
Revolving
credit loans
|
$ | 201,000 | $ | 135,000 | ||||
Term
loans
|
73,900 | 77,875 | ||||||
6½%
Senior Subordinated Notes due 2013
|
275,883 | 355,583 | ||||||
$141,316
and $183,285, 6½% Senior Subordinated Notes due 2013 - Class B, net of
discount of $6,044 and $8,390 at March 31, 2009 and December 31,
2008, respectively
|
135,272 | 174,895 | ||||||
Total debt
|
686,055 | 743,353 | ||||||
Less
current portion
|
15,900 | 15,900 | ||||||
Total
long-term debt
|
$ | 670,155 | $ | 727,453 |
Loss
(Gain) on Derivative Instruments
|
Comprehensive
Loss (Income), Net of Tax
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Mark-to-Market
Adjustments on:
|
||||||||||||||||
2.50%
Exchangeable Senior Subordinated Debentures
|
$ | - | $ | (375 | ) | $ | - | $ | - | |||||||
2006
interest rate hedge
|
220 | - | 441 | (1,516 | ) | |||||||||||
$ | 220 | $ | (375 | ) | $ | 441 | $ | (1,516 | ) |
March
31, 2009
|
December
31, 2008
|
|||||||
2006
interest rate hedge
|
$ | 5,979 | $ | 6,493 |
Quoted
prices in active markets
|
Significant
observable inputs
|
Signficant
unobservable inputs
|
||||||||||
(Level
1)
|
(Level
2)
|
(Level
3)
|
Total
|
|||||||||
Assets:
|
||||||||||||
Deferred
compensation related investments
|
$ | 2,051 | $ | $ | $ | 2,051 | ||||||
Interest
rate swaps
|
5,979 | 5,979 | ||||||||||
Deferred
compensation related liabilities
|
2,051 | 2,051 |
Three
Months Ended March 31,
|
||||||||
2009
|
2008
|
|||||||
Net
periodic pension benefit cost:
|
||||||||
Service
cost
|
$ | 400 | $ | 538 | ||||
Interest
cost
|
1,615 | 1,592 | ||||||
Expected
return on plan assets
|
(1,687 | ) | (1,705 | ) | ||||
Amortization
of prior service cost
|
31 | 31 | ||||||
Amortization
of net loss
|
196 | 48 | ||||||
Curtailment
|
438 | - | ||||||
Net
periodic benefit cost
|
$ | 993 | $ | 504 | ||||
Contributions
|
||||||||
401(k)
Plan
|
$ | 272 | $ | 313 | ||||
Retirement
plans
|
- | 753 | ||||||
Total
contributions
|
$ | 272 | $ | 1,066 |
Balance
as of December 31, 2008
|
Three
Months Ended March 31, 2009
|
Balance
as of March 31, 2009
|
||||||||||||||
Benefit
|
Payments
|
|||||||||||||||
Severance
and related
|
$ | 3,493 | $ | - | $ | 2,789 | $ | 704 | ||||||||
Contractual
and other
|
5,868 | - | 4,977 | 891 | ||||||||||||
Total
|
$ | 9,361 | $ | - | $ | 7,766 | $ | 1,595 |
|
·
|
GECC,
after exhausting all remedies against the joint venture, could enforce its
rights under the guarantee, which could cause LIN TV to determine that LIN
Television should seek to sell material assets owned by it in order to
satisfy LIN TV’s obligations under the
guarantee;
|
|
·
|
GECC’s
initiation of proceedings against LIN TV under the guarantee, if they
result in material adverse consequences to LIN Television, would cause an
acceleration of LIN Television’s credit facility and other outstanding
indebtedness; and
|
|
·
|
if
the GECC Note is prepaid because of an acceleration on default or
otherwise, we would incur a substantial tax liability of approximately
$271.3 million related to our deferred gain associated with the formation
of the joint venture.
|