SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) November 6, 2001
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The Liberty Corporation
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(Exact name of Registrant as Specified in Charter)
South Carolina 1-5846 57-0507055
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(State or Other Jurisdiction (Commission File (IRS Employer
of Incorporation) Number) Identification No.)
135 South Main Street, Greenville, SC 29601
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (864) 241-5400
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n/a
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(Former Name or Former Address, if Changed Since Last Report)
ITEM 9. REGULATION FD DISCLOSURE.
[LIBERTY CORPORATION LETTERHEAD]
For Further Information: Howard Schrott (864) 241-5400
LIBERTY CORPORATION REPORTS THIRD QUARTER RESULTS
Greenville, SC (November 6, 2001) - The Liberty Corp. (NYSE: LC) today
reported financial results for quarter ended September 30, 2001. Liberty owns
and operates 15 network-affiliated television stations along with other
ancillary businesses.
For the quarter ended September 30, 2001, net revenue declined seven
percent to $40.2 million compared with $43.3 million for the prior year. The
decline in revenues is due to losses in revenue related to the events of
September 11th and the fact that the same quarter in the prior year benefited
from revenue related to the Olympics and political activity. For the nine-month
period, net revenue increased five percent to $130.3 million from $124.3 million
from the prior year.
For the latest quarter, broadcast cash flow decreased 32 percent to
$12.8 million from $18.9 million. For the nine months period, Broadcast Cash
Flow decreased ten percent to $47.1 million from $52.2 million. Broadcast cash
flow is defined as operating income plus depreciation and amortization, non-cash
compensation, corporate cash expenses, non-recurring and certain other items.
Broadcast Cash Flow is a commonly used measurement to evaluate the operating
performance of media properties.
"We are extremely proud of the manner in which our television stations
served the public in covering the tragic events of September 11th. Through their
tireless efforts, each of the communities we serve was kept informed around the
clock," commented Hayne Hipp, Chief Executive Officer of Liberty.
"Unquestionably, this type of intensive coverage comes at a cost, which has
affected our operating results for the quarter. Revenue was lost and costs
increased due to several days of uninterrupted news coverage. In addition,
advertisers cancelled orders due to the uncertain economic conditions that
followed, however, much of this business is returning in the fourth quarter."
Hipp continued, "The economic fallout of these events has touched every
advertising-related business, but our dominant news positions keep us uniquely
positioned with our customers and a debt-free balance sheet gives us the freedom
to explore growth opportunities which may arise."
A major group broadcaster, Liberty owns fifteen network-affiliated
television stations, including eight NBC affiliates (WAVE-TV, Louisville, KY;
WIS-TV, Columbia, SC; WLBT-TV, Jackson, MS; WFIE-TV, Evansville, IN; WSFA-TV,
Montgomery, AL; KCBD-TV, Lubbock, TX; WALB-TV, Albany, GA and KPLC-TV, Lake
Charles, LA); five ABC affiliates (KLTV-TV, Tyler, TX; KTRE-TV, the satellite
affiliate of KLTV in Lufkin, TX; WLOX-TV, Biloxi, MS; WWAY-TV, Wilmington, NC
and KAIT-TV, Jonesboro, AR); and two CBS affiliates (WTOL-TV, Toledo, OH and
KGBT-TV, Harlingen, TX). In addition, Liberty owns CableVantage Inc., a cable
advertising sales subsidiary; Take Ten Productions, a video production facility;
and Broadcast Merchandising Company, a professional broadcast equipment
dealership.
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Liberty has operational partnerships and equity positions in WorldNow,
the leading provider of Internet technology solutions for local media companies;
MyWeather, developer of innovative technologies to provide personalized weather
on the web, and iBlast, the nation's largest wireless data broadcast
distribution network that provides a fast, cost-effective "last mile" solution
for content providers and consumers.
For further information about Liberty, visit the corporate website,
http://www.libertycorp.com/
Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor"
for forward-looking statements. Certain information contained herein or in any
other written or oral statements made by, or on behalf of the Company, is or may
be viewed as forward-looking. The words "expect," "believe," "anticipate" or
similar expressions identify forward-looking statements. Although the Company
has used appropriate care in developing any such forward-looking information,
forward-looking information involves risks and uncertainties that could
significantly impact actual results. These risks and uncertainties include, but
are not limited to, the following: changes in national and local markets for
television advertising; changes in general economic conditions, including the
performance of financial markets and interest rates; competitive, regulatory, or
tax changes that affect the cost of or demand for the Company's products; and
adverse litigation results. The Company undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a result of new
information, future developments, or otherwise.
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THE LIBERTY CORPORATION
Income Statement Information
Three Months Ended Nine Months Ended
September 30, September 30,
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(In 000's, except per share data) 2001 2000 2001 2000
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Unaudited
REVENUES
Station revenues (net of commissions) $ 37,170 $ 40,058 $ 121,407 $ 114,737
Cable advertising and other revenues 3,003 3,234 8,885 9,539
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Net revenues 40,173 43,292 130,292 124,276
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EXPENSES
Operating expenses 25,645 23,187 77,518 68,166
Amortization of program rights 2,021 1,704 5,957 4,792
Depreciation and amortization of intangibles 8,434 5,272 23,717 14,864
Corporate, general, and administrative expenses 3,685 2,661 9,783 8,025
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Total operating expenses 39,785 32,824 116,975 95,847
Operating income 388 10,468 13,317 28,429
Net investment income (loss) (1,938) 724 3,799 12,016
Interest expense -- 4,314 -- 12,705
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Income (loss) from continuing operations before
income taxes (1,550) 6,878 17,116 27,740
Provision for (benefit from) income taxes (589) 2,885 6,504 11,448
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Income (loss) from continuing operations (961) 3,993 10,612 16,292
Income from discontinued operations (net of taxes) -- 7,573 -- 26,061
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NET INCOME (LOSS) $ (961) $ 11,566 $ 10,612 $ 42,353
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DILUTED EARNINGS PER SHARE:
Diluted earnings (loss) per common share from
continuing operations $(0.05) $0.20 $0.54 $0.83
Diluted earnings per common share from
discontinued operations -- 0.38 -- 1.32
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Diluted earnings (loss) per common share $(0.05) $0.58 $0.54 $2.15
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Weighted average common dilutive shares 19,526 19,736 19,658 19,721
Actual common and common equivalent shares
outstanding at end of period 19,683 19,916 19,683 19,916
RECONCILIATION OF OPERATING INCOME TO ADJUSTED BROADCAST CASH FLOW
Operating income per income statement $ 388 $ 10,468 $ 13,317 $ 28,429
One time charges (1) -- 461 -- 863
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Adjusted operating income 388 10,929 13,317 29,292
Add:
Depreciation and amortization 8,434 5,272 23,717 14,864
Adj. for network compensation due vs. accrued 248 -- 248 --
Non-cash compensation 224 648 533 1,210
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Operating cash flow $ 9,294 $ 16,849 $ 37,815 $ 45,366
Corporate cash expenses 3,461 2,011 9,250 6,813
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Broadcast cash flow $ 12,755 $ 18,860 $ 47,065 $ 52,179
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(1) Adjusted to exclude charges in 2000 related to the phase-out and winding up
of the Company's direct mail operations
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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
November 6, 2001