• Net revenue for the quarter ended March 31, 2010 increased by 4%
  • Net revenue for the radio stations for the three months ended March 31, 2010 increased 5.5%
  • Operating income improved by $22.9 million for the quarter, or over 160%
  • Segment operating income for the first quarter of 2010 was $49.7 million, up 58%. The radio stations segment operating income increased $10.7 million and the radio network had segment operating income of $3.4 million compared to a segment operating loss of $4.3 million in the first quarter of 2009

LAS VEGAS--(BUSINESS WIRE)--Citadel Broadcasting Corporation (OTCBB:CTDBQ) today reported certain results for the quarter ended March 31, 2010.

  Three Months Ended
March 31,
2010

 

 

2009

(In thousands)
 
Net revenue $ 165,028 $ 158,891
Operating income 37,137 14,239
Segment operating income 49,738 31,386

Net revenue for the first quarter of 2010 was $165.0 million as compared to $158.9 million for the first quarter of 2009, an increase of $6.1 million, or 3.8%. This increase was due to a $7.2 million revenue increase, or 5.5%, at our Radio Markets segment, slightly offset by a $0.9 million revenue decrease at our Radio Network segment. The increase in revenue at our Radio Markets segment is primarily due to increases in both national and local advertising. Generally, our stations in larger metropolitan markets performed better than those stations in medium to small metropolitan markets. Our stations in Los Angeles, CA, Detroit, MI and Dallas, TX showed significant revenue growth, while revenues at our Salt Lake City, UT and Washington, D.C. stations were lower when compared to the prior year quarter. Operating income for the first quarter of 2010 was $37.1 million as compared to $14.2 million in the corresponding 2009 period, an increase of approximately $22.9 million, or 161.3%. The increase in operating income is primarily the result of higher revenue of $6.1 million, lower station and network operating expenses of approximately $13.4 million and lower depreciation and amortization of $3.4 million.

Segment operating income (a non-GAAP financial measure generally defined as operating income (loss) adjusted to exclude depreciation and amortization, stock-based compensation, corporate general and administrative expenses, local marketing agreement fees, and other, net) was $49.7 million for the first quarter of 2010, compared to $31.4 million for the first quarter of 2009. This increase of $18.3 million, or 58.3%, was due to a $10.7 million increase at our Radio Markets segment and $3.4 million segment operating income compared to a $4.3 million segment operating loss in the first quarter of 2009 at our Radio Network segment.

Segment Results

The table below presents net revenue and segment operating income for the Company for the three months ended March 31, 2010 and 2009.

    Three Months Ended
March 31,
2010   2009
(In thousands)
Net revenue:  
Radio Markets $ 138,144 $ 130,932
Radio Network 28,059 28,974
Eliminations   (1,175 ) (1,015 )
Net revenue $ 165,028     $ 158,891  
 
Segment operating income:
Radio Markets $ 46,384 $ 35,686
Radio Network   3,354   (4,300 )
Segment operating income $ 49,738     $ 31,386  

Bankruptcy Proceedings

On December 20, 2009, Citadel Broadcasting Corporation (the “Company”), and certain of its subsidiaries (collectively the “Debtors”) filed voluntary petitions in the United States Bankruptcy Court for the Southern District of New York (the “Court”) seeking relief under the provisions of Chapter 11 of Title 11 of the United States Code (the “Bankruptcy Code”). In connection with the Chapter 11 cases, on February 3, 2010, the Debtors filed with the Court a proposed joint plan of reorganization and a related disclosure statement pursuant to Chapter 11 of the Bankruptcy Code. On March 15, 2010, the Debtors filed with the Court a first modified joint plan of reorganization (the “Plan”) and the related first modified disclosure statement for the Plan (the “Disclosure Statement”) pursuant to chapter 11 of the Bankruptcy Code. On April 23, 2010, the Debtors filed with the Court the Plan Supplement and additional related documents. The confirmation hearing on the Plan is scheduled for May 12, 2010. Copies of the Plan and Disclosure Statement are publicly available and may be accessed free of charge at the Debtors’ private website at http://www.kccllc.net/citadel.

Our Station Portfolio

Citadel Broadcasting Corporation is the third largest radio group in the United States, with a national footprint reaching more than 50 markets. Citadel is comprised of 166 FM stations and 58 AM stations in the nation’s leading markets, in addition to owning and operating the Citadel Media business, which is among the largest radio networks in the United States. For more information, visit www.citadelbroadcasting.com.

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