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)
|
Delaware
|
Delaware
|
(State
or other jurisdiction of
|
(State
or other jurisdiction of
|
incorporation
or organization)
|
incorporation
or organization)
|
05-0501252
|
13-3581627
|
(I.R.S.
Employer
|
(I.R.S.
Employer
|
Identification
No.)
|
Identification
No.)
|
Large
accelerated filer £
|
Accelerated
filer R
|
Non-accelerated filer
£
|
Smaller
reporting company £
|
(Do
not check if a smaller reporting
company)
|
3
|
|
4
|
|
5
|
|
7
|
|
8
|
|
23
|
|
34
|
|
34
|
|
35
|
|
35
|
|
35
|
|
35
|
|
35
|
|
36
|
|
36
|
|
37
|
LIN
TV Corp.
|
||||||||
(unaudited)
|
||||||||
September
30,
|
December
31,
|
|||||||
2009
|
2008
|
|||||||
(in
thousands, except share data)
|
||||||||
ASSETS
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$
|
11,762
|
$
|
20,106
|
||||
Restricted
cash
|
2,000
|
-
|
||||||
Accounts
receivable, less allowance for doubtful accounts (2009 - $2,652; 2008 -
$2,761)
|
61,927
|
68,277
|
||||||
Program
rights
|
2,256
|
3,311
|
||||||
Assets
held for sale
|
-
|
430
|
||||||
Other
current assets
|
5,705
|
5,045
|
||||||
Total
current assets
|
83,650
|
97,169
|
||||||
Property
and equipment, net
|
166,420
|
180,679
|
||||||
Deferred
financing costs
|
9,304
|
8,511
|
||||||
Program
rights
|
1,982
|
3,422
|
||||||
Goodwill
|
114,486
|
117,159
|
||||||
Broadcast
licenses and other intangible assets, net
|
392,856
|
430,142
|
||||||
Assets
held for sale
|
-
|
8,872
|
||||||
Other
assets
|
4,008
|
6,640
|
||||||
Total
assets
|
$
|
772,706
|
$
|
852,594
|
||||
LIABILITIES,
PREFERRED STOCK AND STOCKHOLDERS' DEFICIT
|
||||||||
Current
liabilities:
|
||||||||
Current
portion of long-term debt
|
$
|
15,900
|
$
|
15,900
|
||||
Accounts
payable
|
4,666
|
7,988
|
||||||
Accrued
expenses
|
45,727
|
56,701
|
||||||
Program
obligations
|
10,789
|
10,109
|
||||||
Liabilities
held for sale
|
-
|
429
|
||||||
Total
current liabilities
|
77,082
|
91,127
|
||||||
Long-term
debt, excluding current portion
|
664,924
|
727,453
|
||||||
Deferred
income taxes, net
|
153,382
|
141,702
|
||||||
Program
obligations
|
2,512
|
5,336
|
||||||
Other
liabilities
|
63,219
|
69,226
|
||||||
Total
liabilities
|
961,119
|
1,034,844
|
||||||
Stockholders'
Deficit:
|
||||||||
Class
A common stock, $0.01 par value, 100,000,000 shares
authorized,
|
||||||||
Issued:
29,684,218 and 29,733,672 shares at September 30, 2009 and December 31,
2008, respectively
|
||||||||
Outstanding:
27,877,790 and 27,927,244 shares at September 30, 2009 and December 31,
2008, respectively
|
294
|
294
|
||||||
Class
B common stock, $0.01 par value, 50,000,000 shares
authorized, 23,502,059 shares at September 30, 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
September 30, 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 September 30, 2009 and
December 31, 2008, at cost
|
(18,005
|
)
|
(18,005
|
)
|
||||
Additional
paid-in capital
|
1,103,364
|
1,101,919
|
||||||
Accumulated
deficit
|
(1,240,739
|
)
|
(1,239,090
|
)
|
||||
Accumulated
other comprehensive loss
|
(33,562
|
)
|
(34,634
|
)
|
||||
Total
stockholders' deficit
|
(188,413
|
)
|
(189,281
|
)
|
||||
Preferred
stock of Banks Broadcasting, Inc.
|
-
|
7,031
|
||||||
Total
deficit
|
(188,413
|
)
|
(182,250
|
)
|
||||
Total
liabilities, preferred stock and stockholders'
deficit
|
$
|
772,706
|
$
|
852,594
|
||||
The
accompanying notes are an integral part of the unaudited consolidated
financial statements.
|
LIN
TV Corp.
|
||||||||||||||||
(unaudited)
|
||||||||||||||||
Three
months ended September 30,
|
Nine
months ended September 30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Net
revenues
|
$
|
81,371
|
$
|
98,804
|
$
|
238,363
|
$
|
295,571
|
||||||||
Operating
costs and expenses:
|
||||||||||||||||
Direct
operating
|
25,635
|
28,977
|
79,083
|
88,666
|
||||||||||||
Selling,
general and administrative
|
24,727
|
28,321
|
75,089
|
85,157
|
||||||||||||
Amortization
of program rights
|
6,317
|
5,856
|
18,221
|
17,620
|
||||||||||||
Corporate
|
4,206
|
3,683
|
13,193
|
14,922
|
||||||||||||
Depreciation
|
7,561
|
7,308
|
23,135
|
22,125
|
||||||||||||
Amortization
of intangible assets
|
24
|
44
|
64
|
228
|
||||||||||||
Impairment
of goodwill and broadcast licenses
|
-
|
-
|
39,894
|
296,972
|
||||||||||||
Restructuring
charge
|
-
|
-
|
498
|
-
|
||||||||||||
(Gain)
loss from asset dispositions
|
(886
|
)
|
74
|
(3,544
|
)
|
(296
|
)
|
|||||||||
Operating
income (loss)
|
13,787
|
24,541
|
(7,270
|
)
|
(229,823
|
)
|
||||||||||
Other
expense (income):
|
||||||||||||||||
Interest
expense, net
|
11,259
|
13,241
|
32,314
|
41,554
|
||||||||||||
Share
of loss (income) in equity investments
|
2,000
|
(662)
|
2,000
|
(861
|
)
|
|||||||||||
Loss
(income) on extinguishment of debt
|
-
|
491
|
(50,149
|
)
|
4,195
|
|||||||||||
Other,
net
|
(232)
|
1,036
|
(176)
|
622
|
||||||||||||
Total
other expense (income), net
|
13,027
|
14,106
|
(16,011
|
)
|
45,510
|
|||||||||||
Income
(loss) from continuing operations before provision for income
taxes
|
760
|
10,435
|
8,741
|
(275,333
|
)
|
|||||||||||
Provision
for (benefit from) income taxes
|
1,635
|
218
|
9,944
|
(70,666
|
)
|
|||||||||||
(Loss)
income from continuing operations
|
(875
|
)
|
10,217
|
(1,203
|
)
|
(204,667
|
)
|
|||||||||
Discontinued
operations:
|
||||||||||||||||
(Loss)
income from discontinued operations, net of gain from the sale of
discontinued operations of $11 for the nine months ended September 30,
2009 and net of provision for income taxes of $74 for the three months
ended September 30, 2008, and net of (benefit from) provision for income
taxes of $(628) and $215 for the nine months ended September 30, 2009 and
2008, respectively
|
-
|
(196
|
)
|
(446
|
)
|
184
|
||||||||||
Net
(loss) income
|
$
|
(875
|
)
|
$
|
10,021
|
$
|
(1,649
|
)
|
$
|
(204,483
|
)
|
|||||
Basic
(loss) income per common share:
|
||||||||||||||||
(Loss)
income from continuing operations
|
$
|
(0.02
|
)
|
$
|
0.20
|
$
|
(0.02
|
)
|
$
|
(4.04
|
)
|
|||||
(Loss)
income from discontinued operations, net of tax
|
-
|
-
|
(0.01
|
)
|
0.01
|
|||||||||||
Net
(loss) income
|
$
|
(0.02
|
)
|
$
|
0.20
|
$
|
(0.03
|
)
|
$
|
(4.03
|
)
|
|||||
Weighted
- average number of common shares outstanding
|
||||||||||||||||
used
in calculating basic (loss) income per common share
|
51,367
|
50,620
|
51,371
|
50,714
|
||||||||||||
Diluted
(loss) income per common share:
|
||||||||||||||||
(Loss)
income from continuing operations
|
$
|
(0.02
|
)
|
$
|
0.20
|
$
|
(0.02
|
)
|
$
|
(4.04
|
)
|
|||||
(Loss)
income from discontinued operations, net of tax
|
-
|
-
|
(0.01
|
)
|
0.01
|
|||||||||||
Net
(loss) income
|
$
|
(0.02
|
)
|
$
|
0.20
|
$
|
(0.03
|
)
|
$
|
(4.03
|
)
|
|||||
Weighted
- average number of common shares outstanding
|
||||||||||||||||
used
in calculating diluted (loss) income per common
share
|
51,367
|
50,620
|
51,371
|
50,714
|
||||||||||||
The
accompanying notes are an integral part of the unaudited consolidated
financial statements.
|
||||||||||||||||
LIN
TV Corp.
|
||||||||||||||||||||||||||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||||||||||||||||||||||||||
(in
thousands)
|
||||||||||||||||||||||||||||||||||||||||||||
|
Accumulated
Other
|
Total
|
Preferred
Stock
|
|
||||||||||||||||||||||||||||||||||||||||
Class
A
|
Class
B
|
Class
C
|
Treasury Stock
Additional
Paid-
Accumulated
|
Comprehensive | Stockholders' | of Banks | Comprehensive | |||||||||||||||||||||||||||||||||||||
Total
Deficit
|
Amount
|
Amount
|
Amount
|
(at cost) | In Capital | Deficit | Loss | Deficit | Broadcasting | Loss | ||||||||||||||||||||||||||||||||||
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 $9
|
14 | - | - | - | - | - | - | 14 | 14 | - | 14 | |||||||||||||||||||||||||||||||||
Amortization
of net loss on pension plan assets, net of tax of $50
|
74 | - | - | - | - | - | - | 74 | 74 | - | 74 | |||||||||||||||||||||||||||||||||
Unrealized
loss on cash flow hedge, net of tax of $653
|
984 | - | - | - | - | - | - | 984 | 984 | - | 984 | |||||||||||||||||||||||||||||||||
Stock-based
compensation, continuing operations
|
1,445 | - | - | - | - | 1,445 | - | - | 1,445 | - | ||||||||||||||||||||||||||||||||||
Distribution
to minority shareholders
|
(2,644 | ) | - | - | - | - | - | - | - | - | (2,644 | ) | ||||||||||||||||||||||||||||||||
Net
loss
|
(6,036 | ) | - | - | - | - | - | (1,649 | ) | - | (1,649 | ) | (4,387 | ) | (1,649 | ) | ||||||||||||||||||||||||||||
Comprehensive
loss - September 30, 2009
|
$ | (577 | ) | |||||||||||||||||||||||||||||||||||||||||
Balance
at September 30, 2009
|
$ | (188,413 | ) | $ | 294 | $ | 235 | $ | - | $ | (18,005 | ) | $ | 1,103,364 | $ | (1,240,739 | ) | $ | (33,562 | ) | $ | (188,413 | ) | $ | - | |||||||||||||||||||
The
accompanying notes are an integral part of the unaudited consolidated
financial statements
|
LIN
TV Corp.
|
||||||||||||||||||||||||||||||||||||||||||||
Consolidated
Statements of Stockholders' Equity and Comprehensive
Loss
|
||||||||||||||||||||||||||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||||||||||||||||||||||||||
(in
thousands)
|
||||||||||||||||||||||||||||||||||||||||||||
|
Accumulated
Other
|
Total
|
Preferred
Stock
|
|
||||||||||||||||||||||||||||||||||||||||
Class
A
|
Class
B
|
Class
C
|
Treasury Stock
Additional
Paid-
Accumulated
|
Comprehensive
|
Stockholders' | of Banks | Comprehensive | |||||||||||||||||||||||||||||||||||||
Total
Equity
|
Amount
|
Amount
|
Amount
|
(at cost) | In Capital | Deficit | Loss | Equity | Broadcasting | Loss | ||||||||||||||||||||||||||||||||||
Balance
at December 31, 2007
|
$ | 665,144 | $ | 292 | $ | 235 | $ | - | $ | (18,005 | ) | $ | 1,096,455 | $ | (408,726 | ) | $ | (14,153 | ) | $ | 656,098 | $ | 9,046 | |||||||||||||||||||||
Amortization
of prior service cost, net of tax of $36
|
54 | - | - | - | - | - | - | 54 | 54 | - | 54 | |||||||||||||||||||||||||||||||||
Amortization
of net loss on pension plan assets, net of tax of $57
|
87 | - | - | - | - | - | - | 87 | 87 | - | 87 | |||||||||||||||||||||||||||||||||
Unrealized
loss on cash flow hedge, net of tax of $123
|
184 | - | - | - | - | - | - | 184 | 184 | - | 184 | |||||||||||||||||||||||||||||||||
Exercises
of employee and director stock based compensation
|
1,185 | 1 | - | - | - | 1,184 | - | 1,185 | - | |||||||||||||||||||||||||||||||||||
Stock-based
compensation, continuing operations
|
3,573 | - | - | - | - | 3,573 | - | - | 3,573 | - | ||||||||||||||||||||||||||||||||||
Stock-based
compensation, discontinued operations
|
8 | 8 | - | 8 | - | |||||||||||||||||||||||||||||||||||||||
Tax
benefit from stock option exercises
|
134 | - | - | - | - | 134 | - | 134 | - | |||||||||||||||||||||||||||||||||||
Net
loss
|
(206,434 | ) | - | - | - | - | - | (204,483 | ) | - | (204,483 | ) | (1,951 | ) | (204,483 | ) | ||||||||||||||||||||||||||||
Comprehensive
loss - September 30, 2008
|
$ | (204,158 | ) | |||||||||||||||||||||||||||||||||||||||||
Balance
at September 30, 2008
|
$ | 463,935 | $ | 293 | $ | 235 | $ | - | $ | (18,005 | ) | $ | 1,101,354 | $ | (613,209 | ) | $ | (13,828 | ) | $ | 456,840 | $ | 7,095 | |||||||||||||||||||||
The
accompanying notes are an integral part of the unaudited consolidated
financial statements
|
LIN
TV Corp.
|
|||||||
(unaudited)
|
|||||||
Nine
Months Ended September 30,
|
|||||||
2009
|
2008
|
||||||
(in
thousands)
|
|||||||
OPERATING
ACTIVITIES:
|
|||||||
Net
loss
|
$
|
(1,649
|
)
|
$
|
(204,483
|
)
|
|
Loss
(income) from discontinued operations
|
446
|
(184
|
)
|
||||
Adjustment
to reconcile net loss to net cash provided by operating
activities:
|
|||||||
Depreciation
|
23,135
|
22,125
|
|||||
Amortization
of intangible assets
|
64
|
228
|
|||||
Impairment
of goodwill, broadcast licenses and broadcast
equipment
|
39,894
|
296,972
|
|||||
Amortization
of financing costs and note discounts
|
2,945
|
4,782
|
|||||
Amortization
of program rights
|
18,221
|
17,620
|
|||||
Program
payments
|
(18,322
|
)
|
(19,909
|
)
|
|||
(Gain)
loss on extinguishment of debt
|
(50,149
|
)
|
4,195
|
||||
Share
of loss (income) in equity investments
|
2,000
|
(861
|
)
|
||||
Deferred
income taxes, net
|
10,462
|
(71,082
|
)
|
||||
Stock-based
compensation
|
1,615
|
3,583
|
|||||
Gain
from asset dispositions
|
(3,539
|
)
|
(296
|
)
|
|||
Other,
net
|
2,120
|
25
|
|||||
Changes
in operating assets and liabilities, net of acquisitions and
disposals:
|
|||||||
Accounts
receivable
|
6,350
|
11,602
|
|||||
Other
assets
|
(164)
|
2,104
|
|||||
Accounts
payable
|
(3,322
|
)
|
(6,822
|
)
|
|||
Accrued
interest expense
|
5,914
|
8,889
|
|||||
Other
accrued expenses
|
(17,220
|
)
|
(2,076
|
)
|
|||
Net
cash provided by operating activities, continuing
operations
|
18,801
|
66,412
|
|||||
Net
cash used in operating activities, discontinued
operations
|
(101)
|
(1,142
|
)
|
||||
Net
cash provided by operating activities
|
18,700
|
65,270
|
|||||
INVESTING
ACTIVITIES:
|
|||||||
Capital
expenditures
|
(4,772
|
)
|
(16,314
|
)
|
|||
Cash
paid for broadcast license rights
|
(7,561)
|
-
|
|||||
Change
in restricted cash
|
(2,000)
|
-
|
|||||
Distributions
from equity investments
|
-
|
2,649
|
|||||
Other
investments, net
|
-
|
401
|
|||||
Net
cash used in investing activities, continuing
operations
|
(14,333
|
)
|
(13,264
|
)
|
|||
Net
cash provided by (used in) investing activities, discontinued
operations
|
5,875
|
(693
|
)
|
||||
Net
cash used in investing activities
|
(8,458)
|
(13,957
|
)
|
||||
FINANCING
ACTIVITIES:
|
|||||||
Net
proceeds on exercises of employee and director stock based
compensation
|
-
|
1,183
|
|||||
Proceeds
from borrowings on long-term debt
|
81,000
|
115,000
|
|||||
Principal
payments on long-term debt
|
(93,280
|
)
|
(190,025
|
)
|
|||
Payment
of long-term debt financing costs
|
(3,662)
|
(1,232)
|
|||||
Net
cash used in financing activities, continuing
operations
|
(15,942
|
)
|
(75,074
|
)
|
|||
Net
cash used in financing activities, discontinued
operations
|
(2,644
|
)
|
-
|
||||
Net
cash used in financing activities
|
(18,586
|
)
|
(75,074
|
)
|
|||
Net
decrease in cash and cash equivalents
|
(8,344
|
)
|
(23,761
|
)
|
|||
Cash
and cash equivalents at the beginning of the period
|
20,106
|
40,031
|
|||||
Cash
and cash equivalents at the end of the period
|
$
|
11,762
|
$
|
16,270
|
|||
Supplemental
schedule of non-cash investing activities:
Accrual
for estimated loan to the joint venture with NBC Universal for cash flow
shortfalls
|
$
|
2,000
|
$
|
-
|
|||
The
accompanying notes are an integral part of the unaudited consolidated
financial statements.
|
Three
Months Ended September 30,
|
Nine
Months Ended September 30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Net
revenues
|
$ | - | $ | 680 | $ | 823 | $ | 2,247 | ||||||||
Operating
(loss) income
|
- | (190 | ) | (3,141 | ) | 919 | ||||||||||
Net
(loss) income
|
- | (196 | ) | (446 | ) | 184 |
Three
Months Ended September 30,
|
Nine
Months Ended September 30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Cash
distributions to SVH from SVO
|
$
|
9,150 | $ | 23,940 | $ | 36,402 | $ | 62,888 | ||||||||
Income
to SVH from SVO
|
$ | 9,180 | $ | 19,922 | $ | 18,409 | $ | 53,879 | ||||||||
Other
expense, net (primarily interest on the GECC note)
|
(16,491 | ) | (16,672 | ) | (49,473 | ) | (49,655 | ) | ||||||||
Net
(loss) income of SVH
|
$ | (7,311 | ) | $ | 3,250 | $ | (31,064 | ) | $ | 4,224 | ||||||
Cash
distributions to us
|
$ | - | $ | 1,630 | $ | - | $ | 2,649 |
September
30, 2009
|
December
31, 2008
|
|||||||||||||||
Gross
Carrying Amount
|
Accumulated
Amortization
|
Gross
Carrying Amount
|
Accumulated
Amortization
|
|||||||||||||
Goodwill
|
$ | 114,486 | $ | - | $ | 117,159 | $ | - | ||||||||
Broadcast
licenses
|
391,803 | - | 429,024 | - | ||||||||||||
Intangible
assets subject to amortization (1)
|
7,796 | (6,743 | ) | 7,796 | (6,678 | ) | ||||||||||
Total
intangible assets
|
$ | 514,085 | $ | (6,743 | ) | $ | 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.
|
2009
|
2008
|
|||||||
Goodwill
|
$ | 666,812 | $ | 664,103 | ||||
Accumulated
impairment losses
|
(549,653 | ) | (128,685 | ) | ||||
Balance
as of January 1
|
$ | 117,159 | $ | 535,418 | ||||
Tax
Adjustments
|
- | 2,709 | ||||||
Impairments
|
(2,673 | ) | (420.968 | ) | ||||
Goodwill
|
$ | 666,812 | $ | 666,812 | ||||
Accumulated
impairment losses
|
(552,326 | ) | (549,653 | ) | ||||
Balance
as of September 30, 2009 and December 31, 2008,
respectively
|
$ | 114,486 | $ | 117,159 |
September
30,
|
December
31,
|
|||||||
2009
|
2008
|
|||||||
Credit
Facility:
|
||||||||
Revolving
credit loans
|
$ | 203,000 | $ | 135,000 | ||||
Term
loans
|
65,950 | 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 $5,325 and $8,390 at September 30, 2009 December 31, 2008,
respectively
|
135,991 | 174,895 | ||||||
Total
debt
|
680,824 | 743,353 | ||||||
Less
current portion
|
15,900 | 15,900 | ||||||
Total
long-term debt
|
$ | 664,924 | $ | 727,453 |
September
30, 2009
|
December
31, 2008
|
|||||||
Carrying
amount
|
$ | 680,824 | $ | 743,353 | ||||
Fair
value
|
568,630 | 402,524 |
Prior
|
As
Amended
|
|||||||
Consolidated
Leverage Ratio:
|
||||||||
July
1, 2009 through September 30, 2009
|
7.00 | x | 9.00 | x | ||||
October
1, 2009 to December 31, 2009
|
7.00 | x | 10.50 | x | ||||
January
1, 2010 through March 31, 2010
|
6.50 | x | 10.00 | x | ||||
April
1, 2010 through June 30, 2010
|
6.50 | x | 9.00 | x | ||||
July
1, 2010 through September 30, 2010
|
6.00 | x | 7.50 | x | ||||
October
1, 2010 and thereafter
|
6.00 | x | 6.00 | x | ||||
Consolidated
Interest Coverage Ratio:
|
||||||||
July
1, 2009 through September 30, 2009
|
2.00 | x | 1.75 | x | ||||
October
1, 2009 through December 31, 2009
|
2.00 | x | 1.50 | x | ||||
January
1, 2010 through June 30, 2010
|
2.25 | x | 1.75 | x | ||||
July
1, 2010 through September 30, 2010
|
2.25 | x | 2.00 | x | ||||
October
1, 2010 and thereafter
|
2.25 | x | 2.25 | x | ||||
Consolidated
Senior Leverage Ratio:
|
||||||||
July
1, 2009 through September 30, 2009
|
3.50 | x | 3.75 | x | ||||
October
1, 2009 through December 31, 2009
|
3.50 | x | 4.25 | x | ||||
January
1, 2010 through March 31, 2010
|
3.50 | x | 4.00 | x | ||||
April
1, 2010 through June 30, 2010
|
3.50 | x | 3.75 | x | ||||
July
1, 2010 through September 30, 2010
|
3.50 | x | 3.00 | x | ||||
October
1, 2010 and thereafter
|
3.50 | x | 2.25 | x | ||||
Interest
rate on borrowings
|
LIBOR + 150bps*
|
LIBOR + 375bps
|
||||||
*
At consolidated leverage of 7x or greater.
|
Loss
(gain) on Derivative Instruments
|
||||||||||||||||
Three
Months Ended September 30,
|
Nine
Months Ended September 30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Mark-to-Market
Adjustments on:
|
||||||||||||||||
2.50%
Exchangeable Senior Subordinated Debentures
|
$ | - | $ | - | $ | - | $ | (375 | ) | |||||||
2006
interest rate hedge
|
17 | - | 12 | - | ||||||||||||
$ | 17 | $ | - | $ | 12 | $ | (375 | ) |
Comprehensive
Income, Net of Tax
|
||||||||||||||||
Three
Months Ended September 30,
|
Nine
Months Ended September 30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Mark-to-Market
Adjustments on:
|
||||||||||||||||
2006
interest rate hedge
|
$ | 153 | $ | 32 | $ | 984 | $ | 184 | ||||||||
$ | 153 | $ | 32 | $ | 984 | $ | 184 |
September
30, 2009
|
December
31, 2008
|
|||||||
2006
interest rate hedge
|
$ | 4,867 | $ | 6,493 |
September
30, 2009
|
||||||||||||
Quoted
prices in active markets
|
Significant
observable inputs
|
Total
|
||||||||||
(Level
1)
|
(Level
2)
|
|||||||||||
Assets:
|
||||||||||||
Deferred
compensation related investments
|
$ | 1,323 | $ | - | $ | 1,323 | ||||||
2006
interest rate hedge
|
- | 4,867 | 4,867 | |||||||||
Deferred
compensation related liabilities
|
1,323 | - | 1,323 |
Three
Months Ended September 30,
|
Nine
Months Ended September 30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Net
periodic pension benefit cost:
|
||||||||||||||||
Service
cost
|
$ | - | $ | 538 | $ | 385 | $ | 1,614 | ||||||||
Interest
cost
|
1,587 | 1,592 | 4,765 | 4,776 | ||||||||||||
Expected
return on plan assets
|
(1,641 | ) | (1,705 | ) | (4,969 | ) | (5,115 | ) | ||||||||
Amortization
of prior service cost
|
- | 30 | 31 | 90 | ||||||||||||
Amortization
of net loss
|
- | 48 | 165 | 144 | ||||||||||||
Curtailment
|
- | - | 438 | - | ||||||||||||
Net
periodic benefit cost
|
$ | (54 | ) | $ | 503 | $ | 815 | $ | 1,509 | |||||||
Contributions
|
||||||||||||||||
401(k)
Plan
|
$ | 56 | $ | 532 | $ | 393 | $ | 1,206 | ||||||||
Retirement
plans
|
- | - | - | 2,250 | ||||||||||||
Total
contributions
|
$ | 56 | $ | 532 | $ | 393 | $ | 3,456 |
Balance
as of
June 30,
2009
|
Three
Months Ended September 30, 2009
|
Balance
as of
September 30,
2009
|
||||||||||||||
Charge
|
Payments
|
|||||||||||||||
Severance
and related
|
$ | 319 | $ | - | $ | 319 | $ | - | ||||||||
Contractual
and other
|
747 | - | 257 | 490 | ||||||||||||
Total
|
$ | 1,066 | $ | - | $ | 576 | $ | 490 |
Balance
as of
December 31,
2008
|
Nine
Months Ended September 30, 2009
|
Balance
as of
September 30,
2009
|
||||||||||||||
Charge
|
Payments
|
|||||||||||||||
Severance
and related
|
$ | 3,493 | $ | (498) | $ | 3,991 | $ | - | ||||||||
Contractual
and other
|
5,868 | - | 5,378 | 490 | ||||||||||||
Total
|
$ | 9,361 | $ | (498) | $ | 9,369 | $ | 490 |
|
·
|
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 September 30,
|
Nine
Months Ended September 30,
|
|||||||||||||||||||||||||||||||
2009
|
2008
|
%
change
|
%
of Gross revenues
|
2009
|
2008
|
%
change
|
%
of Gross revenues
|
|||||||||||||||||||||||||
Local
time sales
|
$ | 51,462 | $ | 60,629 | -15 | % | 56 | % | $ | 156,164 | $ | 191,704 | -19 | % | 58 | % | ||||||||||||||||
National
time sales
|
24,091 | 29,646 | -19 | % | 26 | % | 70,463 | 94,542 | -25 | % | 26 | % | ||||||||||||||||||||
Political
time sales
|
3,032 | 11,357 | -73 | % | 3 | % | 4,915 | 22,678 | -78 | % | 2 | % | ||||||||||||||||||||
Digital
revenues
|
10,393 | 8,114 | 28 | % | 12 | % | 29,529 | 19,737 | 50 | % | 11 | % | ||||||||||||||||||||
Network
compensation
|
903 | 913 | -1 | % | 1 | % | 2,862 | 2,838 | 1 | % | 1 | % | ||||||||||||||||||||
Barter
revenues
|
1,172 | 1,088 | 8 | % | 1 | % | 3,200 | 3,754 | -15 | % | 1 | % | ||||||||||||||||||||
Other
revenues
|
1,166 | 1,152 | 1 | % | 1 | % | 3,103 | 2,986 | 4 | % | 1 | % | ||||||||||||||||||||
Total
gross revenues
|
92,219 | 112,899 | -18 | % | 100 | % | 270,236 | 338,239 | -20 | % | 100 | % | ||||||||||||||||||||
Agency
commissions
|
(10,848 | ) | (14,095 | ) | -23 | % | -12 | % | (31,873 | ) | (42,668 | ) | -25 | % | -12 | % | ||||||||||||||||
Net
revenues
|
81,371 | 98,804 | -18 | % | 88 | % | 238,363 | 295,571 | -19 | % | 88 | % | ||||||||||||||||||||
Operating
costs and expenses:
|
||||||||||||||||||||||||||||||||
Direct
operating
|
25,635 | 28,977 | -12 | % | 79,083 | 88,666 | -11 | % | ||||||||||||||||||||||||
Selling,
general and administrative
|
24,727 | 28,321 | -13 | % | 75,089 | 85,157 | -12 | % | ||||||||||||||||||||||||
Amortization
of program rights
|
6,317 | 5,856 | 8 | % | 18,221 | 17,620 | 3 | % | ||||||||||||||||||||||||
Corporate
|
4,206 | 3,683 | 14 | % | 13,193 | 14,922 | -12 | % | ||||||||||||||||||||||||
Depreciation
|
7,561 | 7,308 | 3 | % | 23,135 | 22,125 | 5 | % | ||||||||||||||||||||||||
Amortization
of intangible assets
|
24 | 44 | -45 | % | 64 | 228 | -72 | % | ||||||||||||||||||||||||
Impairment
of goodwill and intangible assets
|
- | - | - | 39,894 | 296,972 | -87 | % | |||||||||||||||||||||||||
Restructuring
charge
|
- | - | - | 498 | - | 100 | % | |||||||||||||||||||||||||
(Gain)
loss from asset sales
|
(886 | ) | 74 | -1297 | % | (3,544 | ) | (296 | ) | 1097 | % | |||||||||||||||||||||
Total
operating costs and expenses
|
67,584 | 74,263 | -9 | % | 245,633 | 525,394 | -53 | % | ||||||||||||||||||||||||
Operating
income (loss)
|
$ | 13,787 | $ | 24,541 | 44 | % | $ | (7,270 | ) | $ | (229,823 | ) | 97 | % |
Three
Months Ended September 30,
|
Nine
Months Ended September 30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Components
of interest expense
|
||||||||||||||||
Credit
Facility
|
$ | 2,866 | $ | 2,717 | $ | 6,473 | $ | 8,159 | ||||||||
6½%
Senior Subordinated Notes
|
4,664 | 6,337 | 14,561 | 19,078 | ||||||||||||
6½%
Senior Subordinated Notes -- Class B
|
2,750 | 3,691 | 8,677 | 11,110 | ||||||||||||
2.50%
Exchangeable Senior Subordinated Debentures
|
- | - | - | 2,803 | ||||||||||||
Other
interest costs
|
979 | 496 | 2,603 | 404 | ||||||||||||
Total
interest expense, net
|
$ | 11,259 | $ | 13,241 | $ | 32,314 | $ | 41,554 |
Prior
|
As
Amended
|
|||||||
Consolidated
Leverage Ratio:
|
||||||||
July
1, 2009 through September 30, 2009
|
7.00 | x | 9.00 | x | ||||
October
1, 2009 to December 31, 2009
|
7.00 | x | 10.50 | x | ||||
January
1, 2010 through March 31, 2010
|
6.50 | x | 10.00 | x | ||||
April
1, 2010 through June 30, 2010
|
6.50 | x | 9.00 | x | ||||
July
1, 2010 through September 30, 2010
|
6.00 | x | 7.50 | x | ||||
October
1, 2010 and thereafter
|
6.00 | x | 6.00 | x | ||||
Consolidated
Interest Coverage Ratio:
|
||||||||
July
1, 2009 through September 30, 2009
|
2.00 | x | 1.75 | x | ||||
October
1, 2009 through December 31, 2009
|
2.00 | x | 1.50 | x | ||||
January
1, 2010 through June 30, 2010
|
2.25 | x | 1.75 | x | ||||
July
1, 2010 through September 30, 2010
|
2.25 | x | 2.00 | x | ||||
October
1, 2010 and thereafter
|
2.25 | x | 2.25 | x | ||||
Consolidated
Senior Leverage Ratio:
|
||||||||
July
1, 2009 through September 30, 2009
|
3.50 | x | 3.75 | x | ||||
October
1, 2009 through December 31, 2009
|
3.50 | x | 4.25 | x | ||||
January
1, 2010 through March 31, 2010
|
3.50 | x | 4.00 | x | ||||
April
1, 2010 through June 30, 2010
|
3.50 | x | 3.75 | x | ||||
July
1, 2010 through September 30, 2010
|
3.50 | x | 3.00 | x | ||||
October
1, 2010 and thereafter
|
3.50 | x | 2.25 | x | ||||
Interest
rate on borrowings
|
LIBOR + 150bps*
|
LIBOR
+ 375bps
|
||||||
*
At consolidated leverage of 7x or greater.
|
Nine
Months Ended September 30,
|
Increase
(Decrease)
|
|||||||||||
2009
|
2008
|
|||||||||||
Cash
provided by operating activities
|
$ | 18,700 | $ | 65,270 | $ | (46,570 | ) | |||||
Cash
used in investing activities
|
(8,458 | ) | (13,957 | ) | 5,499 | |||||||
Cash
used in financing activities
|
(18,586 | ) | (75,074 | ) | 56,488 | |||||||
Net
decrease in cash and cash equivalents
|
$ | (8,344 | ) | $ | (23,761 | ) | $ | 15,417 |
September
30,
|
December
31,
|
|||||||
2009
|
2008
|
|||||||
Credit
Facility:
|
||||||||
Revolving
credit loans
|
$ | 203,000 | $ | 135,000 | ||||
Term
loans
|
65,950 | 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 $5,325 and $8,390 at September 30, 2009 and December 31, 2008,
respectively
|
135,991 | 174,895 | ||||||
Total debt
|
680,824 | 743,353 | ||||||
Less
current portion
|
15,900 | 15,900 | ||||||
Total
long-term debt
|
$ | 664,924 | $ | 727,453 |
September
30, 2009
|
December
31, 2008
|
|||||||
Carrying
amount
|
$ | 680,824 | $ | 743,353 | ||||
Fair
value
|
568,630 | 402,524 |
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).
|
||
10.1 |
Amendment
to Employment Agreement dated October 29, 2009 between LIN TV Corp, LIN
Television Corporation and Vincent L. Sadusky
|
||
10.2 |
Amendment
to Employment Agreement dated October 29, 2009 between LIN TV Corp, LIN
Television Corporation and Scott M. Blumenthal
|
||
10.3 |
Amendment
to Employment Agreement dated October 29, 2009 between LIN TV Corp, LIN
Television Corporation and Denise M. Parent
|
||
10.4 |
Amendment
to Employment Agreement dated October 29, 2009 between LIN TV Corp, LIN
Television Corporation and Richard Schmaeling
|
||
10.5 |
Amendment
to Employment Agreement dated October 29, 2009 between LIN TV Corp, LIN
Television Corporation and Robert Richter
|
||
10.6 |
Amendment
to Employment Agreement dated October 29, 2009 between LIN TV Corp, LIN
Television Corporation and Nicholas N. Mohamed
|
||
10.7 |
Clarification
of the Supplemental Benefit Retirement Plan of LIN Television Corporation
and subsidiary companies, dated October 29 2009
|
||
31.1 |
Certification
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of the Chief
Executive Officer of LIN TV Corp.
|
||
31.2 |
Certification
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of the Chief
Financial Officer of LIN TV Corp.
|
||
31.3 |
Certification
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of the Chief
Executive Officer of LIN Television Corporation.
|
||
31.4 |
Certification
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of the Chief
Financial Officer of LIN Television Corporation.
|
||
32.1 |
Certification
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of the Chief
Executive Officer and Chief Financial Officer of LIN TV
Corp.
|
||
32.2 |
Certification
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of the Chief
Executive Officer and Chief Financial Officer of LIN Television
Corporation.
|
39
|
|
40
|
|
41
|
|
43
|
|
44 |
Part
I. Financial Information
|
||||||||
LIN
Television Corporation.
|
||||||||
(unaudited)
|
||||||||
September
30,
|
December
31,
|
|||||||
2009
|
2008
|
|||||||
(in
thousands, except share data)
|
||||||||
ASSETS
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$
|
11,762
|
$
|
20,106
|
||||
Restricted
cash
|
2,000
|
- | ||||||
Accounts
receivable, less allowance for doubtful accounts (2009 - $2,652; 2008 -
$2,761)
|
61,927
|
68,277
|
||||||
Program
rights
|
2,256
|
3,311
|
||||||
Assets
held for sale
|
-
|
430
|
||||||
Other
current assets
|
5,705
|
5,045
|
||||||
Total
current assets
|
83,650
|
97,169
|
||||||
Property
and equipment, net
|
166,420
|
180,679
|
||||||
Deferred
financing costs
|
9,304
|
8,511
|
||||||
Program
rights
|
1,982
|
3,422
|
||||||
Goodwill
|
114,486
|
117,159
|
||||||
Broadcast
licenses and other intangible assets, net
|
392,856
|
430,142
|
||||||
Assets
held for sale
|
-
|
8,872
|
||||||
Other
assets
|
4,008
|
6,640
|
||||||
Total
assets
|
$
|
772,706
|
$
|
852,594
|
||||
LIABILITIES,
PREFERRED STOCK AND STOCKHOLDERS' DEFICIT
|
||||||||
Current
liabilities:
|
||||||||
Current
portion of long-term debt
|
$
|
15,900
|
$
|
15,900
|
||||
Accounts
payable
|
4,666
|
7,988
|
||||||
Accrued
expenses
|
45,727
|
56,701
|
||||||
Program
obligations
|
10,789
|
10,109
|
||||||
Liabilities
held for sale
|
-
|
429
|
||||||
Total
current liabilities
|
77,082
|
91,127
|
||||||
Long-term
debt, excluding current portion
|
664,924
|
727,453
|
||||||
Deferred
income taxes, net
|
153,382
|
141,702
|
||||||
Program
obligations
|
2,512
|
5,336
|
||||||
Other
liabilities
|
63,219
|
69,226
|
||||||
Total
liabilities
|
961,119
|
1,034,844
|
||||||
Stockholders'deficit:
|
||||||||
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
|
1,103,893
|
1,102,448
|
||||||
Accumulated
deficit
|
(1,240,739
|
)
|
(1,239,090
|
)
|
||||
Accumulated
other comprehensive loss
|
(33,562
|
)
|
(34,634
|
)
|
||||
Total
stockholders' deficit
|
(188,413
|
)
|
(189,281
|
)
|
||||
Preferred
stock of Banks Broadcasting, Inc.
|
-
|
7,031
|
||||||
Total
deficit
|
(188,413
|
)
|
(182,250
|
)
|
||||
Total
liabilities, preferred stock and stockholders'
deficit
|
$
|
772,706
|
$
|
852,594
|
||||
The
accompanying notes are an integral part of the unaudited consolidated
financial statements.
|
LIN
Television Corporation.
|
||||||||||||||||
(unaudited)
|
||||||||||||||||
Three
months ended September 30,
|
Nine
months ended September 30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Net
revenues
|
$
|
81,371
|
$
|
98,804
|
$
|
238,363
|
$
|
295,571
|
||||||||
Operating
costs and expenses:
|
||||||||||||||||
Direct
operating
|
25,635
|
28,977
|
79,083
|
88,666
|
||||||||||||
Selling,
general and administrative
|
24,727
|
28,321
|
75,089
|
85,157
|
||||||||||||
Amortization
of program rights
|
6,317
|
5,856
|
18,221
|
17,620
|
||||||||||||
Corporate
|
4,206
|
3,683
|
13,193
|
14,922
|
||||||||||||
Depreciation
|
7,561
|
7,308
|
23,135
|
22,125
|
||||||||||||
Amortization
of intangible assets
|
24
|
44
|
64
|
228
|
||||||||||||
Impairment
of goodwill and broadcast licenses
|
-
|
-
|
39,894
|
296,972
|
||||||||||||
Restructuring
charge
|
-
|
-
|
498
|
-
|
||||||||||||
(Gain)
loss from asset dispositions
|
(886
|
)
|
74
|
(3,544
|
)
|
(296
|
)
|
|||||||||
Operating
income (loss)
|
13,787
|
24,541
|
(7,270
|
)
|
(229,823
|
)
|
||||||||||
Other
expense (income):
|
||||||||||||||||
Interest
expense, net
|
11,259
|
13,241
|
32,314
|
41,554
|
||||||||||||
Share
of loss (income) in equity investments
|
2,000
|
(662)
|
2,000
|
(861
|
)
|
|||||||||||
Loss
(income) on extinguishment of debt
|
-
|
491
|
(50,149
|
)
|
4,195
|
|||||||||||
Other,
net
|
(232)
|
1,036
|
(176)
|
622
|
||||||||||||
Total
other expense (income), net
|
13,027
|
14,106
|
(16,011
|
)
|
45,510
|
|||||||||||
Income
(loss) from continuing operations before provision for income
taxes
|
760
|
10,435
|
8,741
|
(275,333
|
)
|
|||||||||||
Provision
for (benefit from) income taxes
|
1,635
|
218
|
9,944
|
(70,666
|
)
|
|||||||||||
(Loss)
income from continuing operations
|
(875
|
)
|
10,217
|
(1,203
|
)
|
(204,667
|
)
|
|||||||||
Discontinued
operations:
|
||||||||||||||||
(Loss)
income from discontinued operations, net of gain from the sale of
discontinued operations of $11 for the nine months ended September 30,
2009 and net of provision for income taxes of $74 for the three months
ended September 30, 2008, and net of (benefit from) provision for income
taxes of $(628) and $215 for the nine months ended September 30, 2009 and
2008, respectively
|
-
|
(196
|
)
|
(446
|
)
|
184
|
||||||||||
Net
(loss) income
|
$
|
(875
|
)
|
$
|
10,021
|
$
|
(1,649
|
)
|
$
|
(204,483
|
)
|
|||||
The
accompanying notes are an integral part of the unaudited consolidated
financial statements.
|
||||||||||||||||
LIN
Television Corporation
|
||||||||||||||||||||||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||||||||||||||||||||||
(in
thousands, except share data)
|
||||||||||||||||||||||||||||||||||||||||
Investment
in Parent
|
Accumulated
Other
|
Total
|
Preferred
Stock
|
|||||||||||||||||||||||||||||||||||||
Common
Stock
|
Company's
Common Additional
Paid-In
Accumulated
Comprehensive Stockholder's
|
of Banks | Comprehensive | |||||||||||||||||||||||||||||||||||||
Total
Deficit
|
Shares
|
Amount
|
Stock, at cost | Capital | Deficit | Loss | Deficit | Broadcasting | Loss | |||||||||||||||||||||||||||||||
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 $9
|
14 | - | - | - | - | - | 14 | 14 | - | 14 | ||||||||||||||||||||||||||||||
Amortization
of net loss, net of tax of $50
|
74 | - | - | - | - | - | 74 | 74 | - | 74 | ||||||||||||||||||||||||||||||
Unrealized
loss on cash flow hedge, net of tax of $653
|
984 | - | - | - | - | - | 984 | 984 | - | 984 | ||||||||||||||||||||||||||||||
Stock-based
compensation, continuing operations
|
1,445 | - | - | - | 1,445 | - | - | 1,445 | - | |||||||||||||||||||||||||||||||
Distribution
to minority shareholders
|
(2,644 | ) | - | - | - | - | - | - | - | (2,644 | ) | |||||||||||||||||||||||||||||
Net
loss
|
(6,036 | ) | - | - | - | - | (1,649 | ) | - | (1,649 | ) | (4,387 | ) | (1,649 | ) | |||||||||||||||||||||||||
Comprehensive
loss - September 30, 2009
|
$ | (577 | ) | |||||||||||||||||||||||||||||||||||||
Balance
at September 30, 2009
|
$ | (188,413 | ) | 1,000 | $ | - | $ | (18,005 | ) | $ | 1,103,893 | $ | (1,240,739 | ) | $ | (33,562 | ) | $ | (188,413 | ) | $ | - | ||||||||||||||||||
The
accompanying notes are an integral part of the unaudited consolidated
financial statements
|
LIN
Television Corporation
|
||||||||||||||||||||||||||||||||||||||||
Consolidated
Statements of Stockholders' Equity and Comprehensive
Loss
|
||||||||||||||||||||||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||||||||||||||||||||||
(in
thousands, except share data)
|
||||||||||||||||||||||||||||||||||||||||
Investment in Parent |
Accumulated
Other
|
Total
|
Preferred
Stock
|
|
||||||||||||||||||||||||||||||||||||
Common
Stock
|
Company's
Common Additional
Paid-In
Accumulated
Comprehensive
Stockholder's
|
of Banks |
Comprehensive
|
|||||||||||||||||||||||||||||||||||||
Total
Equity
|
Shares
|
Amount
|
Stock, at cost | Capital | Deficit | Loss | Equity | Broadcasting | Loss | |||||||||||||||||||||||||||||||
Balance
at December 31, 2007
|
$ | 665,144 | 1,000 | $ | - | $ | (18,005 | ) | $ | 1,096,982 | $ | (408,726 | ) | $ | (14,153 | ) | $ | 656,098 | $ | 9,046 | ||||||||||||||||||||
Amortization
of prior service cost, net of tax of $36
|
54 | - | - | - | - | - | 54 | 54 | - | 54 | ||||||||||||||||||||||||||||||
Amortization
of net loss, net of tax of $57
|
87 | - | - | - | - | - | 87 | 87 | - | 87 | ||||||||||||||||||||||||||||||
Unrealized
loss on cash flow hedge, net of tax of $123
|
184 | - | - | - | - | - | 184 | 184 | - | 184 | ||||||||||||||||||||||||||||||
Exercises
of employee and director stock based compensation
|
1,185 | - | - | - | 1,185 | - | - | 1,185 | - | |||||||||||||||||||||||||||||||
Stock-based
compensation, continuing operations
|
3,573 | - | - | - | 3,573 | - | - | 3,573 | - | |||||||||||||||||||||||||||||||
Stock-based
compensation, discontinued operations
|
8 | - | - | - | 8 | - | - | 8 | - | |||||||||||||||||||||||||||||||
Tax
benefit from stock option exercises
|
134 | - | - | - | 134 | - | - | 134 | - | |||||||||||||||||||||||||||||||
Net
loss
|
(206,434 | ) | - | - | - | - | (204,483 | ) | - | (204,483 | ) | (1,951 | ) | (204,483 | ) | |||||||||||||||||||||||||
Comprehensive
loss - September 30, 2008
|
$ | (204,158 | ) | |||||||||||||||||||||||||||||||||||||
Balance
at September 30, 2008
|
$ | 463,935 | 1,000 | $ | - | $ | (18,005 | ) | $ | 1,101,882 | $ | (613,209 | ) | $ | (13,828 | ) | $ | 456,840 | $ | 7,095 | ||||||||||||||||||||
The
accompanying notes are an integral part of the unaudited consolidated
financial statements
|
LIN
Television Corporation
|
|||||||
(unaudited)
|
|||||||
Nine
Months Ended September 30,
|
|||||||
2009
|
2008
|
||||||
(in
thousands)
|
|||||||
OPERATING
ACTIVITIES:
|
|||||||
Net
loss
|
$
|
(1,649
|
)
|
$
|
(204,483
|
)
|
|
Loss
(income) from discontinued operations
|
446
|
(184
|
)
|
||||
Adjustment
to reconcile net loss to net cash provided by operating
activities:
|
|||||||
Depreciation
|
23,135
|
22,125
|
|||||
Amortization
of intangible assets
|
64
|
228
|
|||||
Impairment
of goodwill, broadcast licenses and broadcast
equipment
|
39,894
|
296,972
|
|||||
Amortization
of financing costs and note discounts
|
2,945
|
4,782
|
|||||
Amortization
of program rights
|
18,221
|
17,620
|
|||||
Program
payments
|
(18,322
|
)
|
(19,909
|
)
|
|||
(Gain)
loss on extinguishment of debt
|
(50,149
|
)
|
4,195
|
||||
Share
of loss (income) in equity investments
|
2,000
|
(861
|
)
|
||||
Deferred
income taxes, net
|
10,462
|
(71,082
|
)
|
||||
Stock-based
compensation
|
1,615
|
3,583
|
|||||
Gain
from asset dispositions
|
(3,539
|
)
|
(296
|
)
|
|||
Other,
net
|
2,120
|
25
|
|||||
Changes
in operating assets and liabilities, net of acquisitions and
disposals:
|
|||||||
Accounts
receivable
|
6,350
|
11,602
|
|||||
Other
assets
|
(164)
|
2,104
|
|||||
Accounts
payable
|
(3,322
|
)
|
(6,822
|
)
|
|||
Accrued
interest expense
|
5,914
|
8,889
|
|||||
Other
accrued expenses
|
(17,220
|
)
|
(2,076
|
)
|
|||
Net
cash provided by operating activities, continuing
operations
|
18,801
|
66,412
|
|||||
Net
cash used in operating activities, discontinued
operations
|
(101)
|
(1,142
|
)
|
||||
Net
cash provided by operating activities
|
18,700
|
65,270
|
|||||
INVESTING
ACTIVITIES:
|
|||||||
Capital
expenditures
|
(4,772
|
)
|
(16,314
|
)
|
|||
Cash
paid for broadcast license rights
|
(7,561)
|
-
|
|||||
Change
in restricted cash
|
(2,000)
|
-
|
|||||
Distributions
from equity investments
|
-
|
2,649
|
|||||
Other
investments, net
|
-
|
401
|
|||||
Net
cash used in investing activities, continuing
operations
|
(14,333
|
)
|
(13,264
|
)
|
|||
Net
cash provided by (used in) investing activities, discontinued
operations
|
5,875
|
(693
|
)
|
||||
Net
cash used in investing activities
|
(8,458)
|
(13,957
|
)
|
||||
FINANCING
ACTIVITIES:
|
|||||||
Net
proceeds on exercises of employee and director stock based
compensation
|
-
|
1,183
|
|||||
Proceeds
from borrowings on long-term debt
|
81,000
|
115,000
|
|||||
Principal
payments on long-term debt
|
(93,280
|
)
|
(190,025
|
)
|
|||
Payment
of long-term debt financing costs
|
(3,662)
|
(1,232)
|
|||||
Net
cash used in financing activities, continuing
operations
|
(15,942
|
)
|
(75,074
|
)
|
|||
Net
cash used in financing activities, discontinued
operations
|
(2,644
|
)
|
-
|
||||
Net
cash used in financing activities
|
(18,586
|
)
|
(75,074
|
)
|
|||
Net
decrease in cash and cash equivalents
|
(8,344
|
)
|
(23,761
|
)
|
|||
Cash
and cash equivalents at the beginning of the period
|
20,106
|
40,031
|
|||||
Cash
and cash equivalents at the end of the period
|
$
|
11,762
|
$
|
16,270
|
|||
Supplemental
schedule of non-cash investing activities:
Accrual
for estimated loan to the joint venture with NBC Universal for cash flow
shortfalls
|
$
|
2,000
|
$
|
-
|
|||
The
accompanying notes are an integral part of the unaudited consolidated
financial statements.
|
Three
Months Ended September 30,
|
Nine
Months Ended September 30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Net
revenues
|
$ | - | $ | 680 | $ | 823 | $ | 2,247 | ||||||||
Operating
(loss) income
|
- | (190 | ) | (3,141 | ) | 919 | ||||||||||
Net
(loss) income
|
- | (196 | ) | (446 | ) | 184 |
Three
Months Ended September 30,
|
Nine
Months Ended September 30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Cash
distributions to SVH from SVO
|
$ | 9,150 | $ | 23,940 | $ | 36,402 | $ | 62,888 | ||||||||
Income
to SVH from SVO
|
$ | 9,180 | $ | 19,922 | $ | 18,409 | $ | 53,879 | ||||||||
Other
expense, net (primarily interest on the GECC note)
|
(16,491 | ) | (16,672 | ) | (49,473 | ) | (49,655 | ) | ||||||||
Net
(loss) income of SVH
|
$ | (7,311 | ) | $ | 3,250 | $ | (31,064 | ) | $ | 4,224 | ||||||
Cash
distributions to us
|
$ | - | $ | 1,630 | $ | - | $ | 2,649 |
September
30, 2009
|
December
31, 2008
|
|||||||||||||||
Gross
Carrying Amount
|
Accumulated
Amortization
|
Gross
Carrying Amount
|
Accumulated
Amortization
|
|||||||||||||
Goodwill
|
$ | 114,486 | $ | - | $ | 117,159 | $ | - | ||||||||
Broadcast
licenses
|
391,803 | - | 429,024 | - | ||||||||||||
Intangible
assets subject to amortization (1)
|
7,796 | (6,743 | ) | 7,796 | (6,678 | ) | ||||||||||
Total
intangible assets
|
$ | 514,085 | $ | (6,743 | ) | $ | 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.
|
2009
|
2008
|
|||||||
Goodwill
|
$ | 666,812 | $ | 664,103 | ||||
Accumulated
impairment losses
|
(549,653 | ) | (128,685 | ) | ||||
Balance
as of January 1
|
$ | 117,159 | $ | 535,418 | ||||
Tax
Adjustments
|
- | 2,709 | ||||||
Impairments
|
(2,673 | ) | (420.968 | ) | ||||
Goodwill
|
$ | 666,812 | $ | 666,812 | ||||
Accumulated
impairment losses
|
(552,326 | ) | (549,653 | ) | ||||
Balance
as of September 30, 2009 and December 31, 2008,
respectively
|
$ | 114,486 | $ | 117,159 |
September
30,
|
December
31,
|
|||||||
2009
|
2008
|
|||||||
Credit
Facility:
|
||||||||
Revolving
credit loans
|
$ | 203,000 | $ | 135,000 | ||||
Term
loans
|
65,950 | 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 $5,325 and $8,390 at September 30, 2009 December 31, 2008,
respectively
|
135,991 | 174,895 | ||||||
Total
debt
|
680,824 | 743,353 | ||||||
Less
current portion
|
15,900 | 15,900 | ||||||
Total
long-term debt
|
$ | 664,924 | $ | 727,453 |
September
30, 2009
|
December
31, 2008
|
|||||||
Carrying
amount
|
$ | 680,824 | $ | 743,353 | ||||
Fair
value
|
568,630 | 402,524 |
Prior
|
As
Amended
|
|||||||
Consolidated
Leverage Ratio:
|
||||||||
July
1, 2009 through September 30, 2009
|
7.00 | x | 9.00 | x | ||||
October
1, 2009 to December 31, 2009
|
7.00 | x | 10.50 | x | ||||
January
1, 2010 through March 31, 2010
|
6.50 | x | 10.00 | x | ||||
April
1, 2010 through June 30, 2010
|
6.50 | x | 9.00 | x | ||||
July
1, 2010 through September 30, 2010
|
6.00 | x | 7.50 | x | ||||
October
1, 2010 and thereafter
|
6.00 | x | 6.00 | x | ||||
Consolidated
Interest Coverage Ratio:
|
||||||||
July
1, 2009 through September 30, 2009
|
2.00 | x | 1.75 | x | ||||
October
1, 2009 through December 31, 2009
|
2.00 | x | 1.50 | x | ||||
January
1, 2010 through June 30, 2010
|
2.25 | x | 1.75 | x | ||||
July
1, 2010 through September 30, 2010
|
2.25 | x | 2.00 | x | ||||
October
1, 2010 and thereafter
|
2.25 | x | 2.25 | x | ||||
Consolidated
Senior Leverage Ratio:
|
||||||||
July
1, 2009 through September 30, 2009
|
3.50 | x | 3.75 | x | ||||
October
1, 2009 through December 31, 2009
|
3.50 | x | 4.25 | x | ||||
January
1, 2010 through March 31, 2010
|
3.50 | x | 4.00 | x | ||||
April
1, 2010 through June 30, 2010
|
3.50 | x | 3.75 | x | ||||
July
1, 2010 through September 30, 2010
|
3.50 | x | 3.00 | x | ||||
October
1, 2010 and thereafter
|
3.50 | x | 2.25 | x | ||||
Interest
rate on borrowings
|
LIBOR
+ 150bps*
|
LIBOR
+ 375bps
|
||||||
*
At consolidated leverage of 7x or greater.
|
Loss
(gain) on Derivative Instruments
|
||||||||||||||||
Three
Months Ended September 30,
|
Nine
Months Ended September 30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Mark-to-Market
Adjustments on:
|
||||||||||||||||
2.50%
Exchangeable Senior Subordinated Debentures
|
$ | - | $ | - | $ | - | $ | (375 | ) | |||||||
2006
interest rate hedge
|
17 | - | 12 | - | ||||||||||||
$ | 17 | $ | - | $ | 12 | $ | (375 | ) |
Comprehensive
Income, Net of Tax
|
||||||||||||||||
Three
Months Ended September 30,
|
Nine
Months Ended September 30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Mark-to-Market
Adjustments on:
|
||||||||||||||||
2006
interest rate hedge
|
$ | 153 | $ | 32 | $ | 984 | $ | 184 | ||||||||
$ | 153 | $ | 32 | $ | 984 | $ | 184 |
September
30, 2009
|
December
31, 2008
|
|||||||
2006
interest rate hedge
|
$ | 4,867 | $ | 6,493 |
September
30, 2009
|
||||||||||||
Quoted
prices in active markets
|
Significant
observable inputs
|
Total
|
||||||||||
(Level
1)
|
(Level
2)
|
|||||||||||
Assets:
|
||||||||||||
Deferred
compensation related investments
|
$ | 1,323 | $ | - | $ | 1,323 | ||||||
2006
interest rate hedge
|
- | 4,867 | 4,867 | |||||||||
Deferred
compensation related liabilities
|
1,323 | - | 1,323 |
Three
Months Ended September 30,
|
Nine
Months Ended September 30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Net
periodic pension benefit cost:
|
||||||||||||||||
Service
cost
|
$ | - | $ | 538 | $ | 385 | $ | 1,614 | ||||||||
Interest
cost
|
1,587 | 1,592 | 4,765 | 4,776 | ||||||||||||
Expected
return on plan assets
|
(1,641 | ) | (1,705 | ) | (4,969 | ) | (5,115 | ) | ||||||||
Amortization
of prior service cost
|
- | 30 | 31 | 90 | ||||||||||||
Amortization
of net loss
|
- | 48 | 165 | 144 | ||||||||||||
Curtailment
|
- | - | 438 | - | ||||||||||||
Net
periodic benefit cost
|
$ | (54 | ) | $ | 503 | $ | 815 | $ | 1,509 | |||||||
Contributions
|
||||||||||||||||
401(k)
Plan
|
$ | 56 | $ | 532 | $ | 393 | $ | 1,206 | ||||||||
Retirement
plans
|
- | - | - | 2,250 | ||||||||||||
Total
contributions
|
$ | 56 | $ | 532 | $ | 393 | $ | 3,456 |
Balance
as of
June 30,
2009
|
Three
Months Ended September 30, 2009
|
Balance
as of
September 30,
2009
|
||||||||||||||
Charge
|
Payments
|
|||||||||||||||
Severance
and related
|
$ | 319 | $ | - | $ | 319 | $ | - | ||||||||
Contractual
and other
|
747 | - | 257 | 490 | ||||||||||||
Total
|
$ | 1,066 | $ | - | $ | 576 | $ | 490 |
Balance
as of
December 31,
2008
|
Nine
Months Ended September 30, 2009
|
Balance
as of
September 30,
2009
|
||||||||||||||
Charge
|
Payments
|
|||||||||||||||
Severance
and related
|
$ | 3,493 | $ | (498) | $ | 3,991 | $ | - | ||||||||
Contractual
and other
|
5,868 | - | 5,378 | 490 | ||||||||||||
Total
|
$ | 9,361 | $ | (498) | $ | 9,369 | $ | 490 |
|
·
|
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.
|