Young Broadcasting (YBTVA) shares rise 4% as earnings loss is narrowed than expected

Young Broadcasting (YBTVA) reported results  on February 23, 2005 for
the fourth quarter and year end 2004.  Below are some highlights.

Results 4Q04 vs. 4Q03:

• GAAP EPS: ($0.06) vs. ($0.67)
• EPS from continuing operations: ($0.24) vs. ($0.68); consensus was ($0.38)
• Revenues: $63.8M vs. $53.4M (+19%); consensus was $60.1M
• Operating income: $10.6M vs. $3.5M (+302%)
• Operating margin: 16.6% vs. 6.5% (+1,010 bps)
• Income from continuing operations: ($4.8M) vs. ($13.5M)
• Net Income: ($1.3M) vs. ($13.2M)
• Station operating performance: $22.9M vs. $13.2M (+73%)
• Cash: $95M
• Debt: $740M
• Capex: $2M for Q4; $12M for 2005

2005 outlook:

• 2005 should be a down year both nationally and locally because of the lack of political ads and the Super Bowl
• Q1 should be up in the mid-single teens both locally and nationally

Quick Comments:

• Completed sale of WTVO-TV in Rockford, IL to Mission Broadcasting; paid $15M on 11/4/04 and $5.75M on 1/4/05; recognized gain of $15M as follows: $3.7M in 2004 and $11.3M in 2005.
• Political advertising revenues contributed $13.8M in Q4 compared to $2.2M during Q4 of the previous Presidential campaign; stations that benefited most were: Davenport (IA), Sioux Falls (SD), Lansing (MI) and Green Bay (WI).
• KRON-TC had strongest quarter in its history increasing revenues 15.4% compared to 3.7% increase for Census market; market share increased to 11.35% from 10.20% in 4Q03