LBI Shows Q4, 2007 Revenue Increases
April 2, 2008 at 5:31 AM (PT)
LBI MEDIA INC. fourth quarter net revenues rose 0.5% to $27.7 million, credited to gains at the company' LOS ANGELES and DALLAS radio clusters, but net loss widened from $1.3 million to $4.9 million, attributed to a $5.2 million increase broadcast license impairment charges, a $1.6 million increase in income tax expense and a $0.8 million increase in interest expense.
Radio net revenues jumped 12.5% to $15.6 million, while the TV division fell 11.7% to $12.1 million.
For full year 2007, net revenues rode 7.1% to $115.7 million, with net loss widening from $11 million to $53.9 million, primarily attributed to a one-time $46.8 million charge from the change of status to an S Corporation, a one-time $8.8 million charge for note redemption, $5.3 million in expenses for license impairment in DALLAS, and a $5 million increase in interest and swap rate charges. Radio revenues for the year increased 19.1% to $9.8 million, with TV off 3.7% to $54.5 million.
EVP LENARD LIBERMAN said, "While 2007 was a difficult year for our industry, we managed to grow our revenues and Adjusted EBITDA across our group of stations.
"Our business model continues to display healthy operating leverage, as reflected in our Adjusted EBITDA margins which improved to 46%, after adjusting for the $7.6 million early redemption penalty we paid on our former 10 1/8% senior subordinated notes. We enter 2008 with higher ratings and market share on our television and radio stations and with the belief and hope that we will continue converting these improved ratings into additional revenues.
"We were fortunate to refinance our high yield notes in JULY 2007 and to restructure our bank revolver before the credit markets shut down. Thankfully, we have a financial structure in place that is flexible and will allow us to prosper during these otherwise difficult times."