Young Broadcasting (YBTVA) falls 16% on 2005 outlook; forecasts declining revenues and rising expenses

Young Broadcasting (ticker: YBTVA) plummeted 16% on Friday following the company's 1Q05 earning release and outlook for 2005.  Here is what the company had to say:

The following is YBTVA's 2005 outlook from its earning press release:

The Company is currently re-examining its cost structure and
identifying new strategies to materially reduce its expenses. The full
potential benefit from these savings will not be realized until the
second half of the year. The guidance given below, therefore, does not
reflect all of the reduced operating expenses which could ultimately
be realized.

The Company believes that net revenue, exclusive of $27.0 million
of net political revenue in 2004, will grow between 4% and 6% to
between $205 to $209 million for the full year 2005. This reflects the
success of the new revenue programs the Company has initiated. When
the 2004 political revenues are included, however, consolidated net
revenue is anticipated to decline by 5% to 7% for the full year 2005.
The Company also believes that station expenses (Operating Expenses
less Corporate Overhead) for the full year will be 3% to 4% higher
than those in 2004. The Company further believes that station
operating performance (a non-GAAP measure, see description below) will
be between $47 and $50 million for the full year 2005. Corporate
overhead should be less than $15 million in 2005.