SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) February 4, 2003
The Liberty Corporation
| South Carolina | 1-5846 | 57-0507055 | ||
| (State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer 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
LC Reports Fourth Quarter Results
Page 2
February 4, 2003
ITEM 9. REGULATION FD DISCLOSURE.
[LIBERTY CORPORATION LETTERHEAD]
For further information: Howard Schrott, 864-241-5400
LIBERTY CORPORATION REPORTS FOURTH QUARTER RESULTS
Greenville, SC (February 4, 2003) — The Liberty Corp. (NYSE:LC) today reported financial results for quarter and year ended December 31, 2002. Liberty owns and operates 15 network-affiliated television stations along with other ancillary businesses.
For the quarter, net revenue increased 28% to $61.6 million compared with $48 million for the prior-year period, while broadcast cash flow increased 41% to $30.2 million from $21.5 million for the same period one year ago. Broadcast cash flow, a commonly used measurement to evaluate the operating performance of media properties, is operating income plus depreciation and amortization, non-cash compensation, corporate cash expenses, non-recurring and certain other items.
For the year ended December 31, 2002, net revenue increased 16% compared with the prior year and broadcast cash flow has increased 31% for the year.
“Being the top-rated television station in virtually all our markets, including being the leading source of local news and information, has led to another outstanding year for our group,” said Hayne Hipp, Chief Executive Officer of Liberty. “We believe our continued track record of operational excellence, as well as our debt-free balance sheet, will continue to serve us well in 2003.”
A major group broadcaster, Liberty owns 15 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.
For further information about Liberty, visit the corporate website, http://www.libertycorp.com/
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. Broadcast cash flow is a commonly used measurement to evaluate the operating performance of media properties, and is not a measure of financial performance under generally accepted accounting principles.
-MORE-
THE LIBERTY CORPORATION
Income Statement Information
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||
| (In 000's, except per share data) | 2002 | 2001 | 2002 | 2001 | |||||||||||||||
| (Unaudited) | |||||||||||||||||||
REVENUES |
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Station revenues (net of commissions) |
$ | 56,878 | $ | 44,383 | $ | 190,147 | $ | 165,039 | |||||||||||
Cable advertising and other revenues |
4,692 | 3,665 | 16,220 | 13,246 | |||||||||||||||
Net revenues |
61,570 | 48,048 | 206,367 | 178,285 | |||||||||||||||
EXPENSES |
|||||||||||||||||||
Operating expenses |
31,189 | 26,379 | 115,668 | 103,908 | |||||||||||||||
Amortization of program rights |
1,739 | 1,980 | 7,281 | 7,937 | |||||||||||||||
Depreciation and amortization of intangibles |
4,419 | 8,253 | 17,762 | 31,970 | |||||||||||||||
Corporate, general, and administrative expenses |
4,295 | 1,935 | 13,481 | 11,820 | |||||||||||||||
Total operating expenses |
41,642 | 38,547 | 154,192 | 155,635 | |||||||||||||||
Operating income |
19,928 | 9,501 | 52,175 | 22,650 | |||||||||||||||
Net investment income |
503 | 119 | 616 | 4,086 | |||||||||||||||
Income before income taxes |
20,431 | 9,620 | 52,791 | 26,736 | |||||||||||||||
Provision for income taxes |
7,541 | 3,656 | 19,796 | 10,160 | |||||||||||||||
Income before the cumulative effect of a change in
accounting principle |
12,890 | 5,964 | 32,995 | 16,576 | |||||||||||||||
Cumulative effect of a change in accounting principle |
— | — | (47,388 | ) | — | ||||||||||||||
NET INCOME (LOSS) |
$ | 12,890 | $ | 5,964 | $ | (14,393 | ) | $ | 16,576 | ||||||||||
DILUTED EARNINGS (LOSS) PER SHARE: |
|||||||||||||||||||
Diluted earnings (loss) before the cumulative effect
of a change in accounting principle per common
share |
$ | 0.66 | $ | 0.30 | $ | 1.68 | $ | 0.84 | |||||||||||
Cumulative effect of a change in accounting principle |
— | — | (2.41 | ) | — | ||||||||||||||
Diluted earnings (loss) per common share
|
$ | 0.66 | $ | 0.30 | $ | (0.73) | $ | 0.84 | |||||||||||
Weighted average common dilutive shares |
19,517 | 19,743 | 19,694 | 19,680 | |||||||||||||||
Actual common and common equivalent shares outstanding
at end of period |
19,423 | 19,750 | 19,423 | 19,750 | |||||||||||||||
RECONCILIATION OF OPERATING INCOME TO ADJUSTED
BROADCAST CASH FLOW |
|||||||||||||||||||
Operating income per income statement |
$ | 19,928 | $ | 9,501 | $ | 52,175 | $ | 22,650 | |||||||||||
Add: |
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Depreciation and amortization |
4,419 | 8,253 | 17,762 | 31,970 | |||||||||||||||
Adj. for network compensation due vs. accrued |
1,233 | 425 | 4,932 | 673 | |||||||||||||||
Non-cash compensation |
647 | 1,589 | 2,501 | 2,122 | |||||||||||||||
Operating cash flow |
26,227 | 19,768 | $ | 77,370 | $ | 57,415 | |||||||||||||
Corporate cash expenses |
3,997 | 1,684 | 12,391 | 10,954 | |||||||||||||||
Broadcast cash flow |
$ | 30,224 | $ | 21,452 | $ | 89,761 | $ | 68,369 | |||||||||||
-END-
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 |
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| Name: Martha Williams Title: Vice President, General Counsel and Secretary |
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| February 4, 2003 | ||||