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) May 7, 2002
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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 FIRST QUARTER RESULTS
Greenville, SC (May 7, 2002) - The Liberty Corp. (NYSE: LC) today reported
financial results for quarter ended March 31, 2002. Liberty owns and
operates 15 network-affiliated television stations along with other
ancillary businesses.
For the quarter, net revenue increased two percent to $42.8 million
compared with $41.9 million for the prior year while broadcast cash flow
increased over nine percent to $15.7 million from $14.4 million from the
same period one year ago. Broadcast cash flow, a commonly used measurement
used to evaluate the operating performance of media properties, is
operating income plus depreciation and amortization, non-cash compensation,
corporate cash expenses, non-recurring and certain other items.
"We are cautiously encouraged by the tone of business in the first
quarter," commented Hayne Hipp, Chief Executive Officer of Liberty. "As
dominant stations in virtually all of our markets, Liberty properties are
uniquely positioned to take full advantage of revenue opportunities as the
pace of business begins to accelerate."
In addition, effective in 2002, Liberty has adopted SFAS 142, which
establishes new accounting rules for amortization of goodwill and other
intangible assets such as FCC
LC REPORTS THIRD QUARTER RESULTS
PAGE 2
MAY 7, 2002
licenses. As a result, amortization expense associated with these items
will be reduced by approximately $15 million over the coming year, and the
Company will take a one-time after-tax charge of $47.4 million to reflect
the cumulative effect of this change in accounting principle.
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.
Liberty has operational agreements 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/
* * * * *
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.
Broadcast cash flow is a commonly used measurement to evaluate the
operating performance of media properties, and is not a measure of
financial performance under generally accepted accounting principles.
-MORE-
THE LIBERTY CORPORATION
INCOME STATEMENT INFORMATION
THREE MONTHS ENDED
MARCH 31,
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(In 000's, except per share data) 2002 2001
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Unaudited
REVENUES
Station revenues (net of commissions) $ 39,510 $39,066
Cable advertising and other revenues 3,316 2,875
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NET REVENUES 42,826 41,941
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EXPENSES
Operating expenses 26,857 25,599
Amortization of program rights 1,852 1,964
Depreciation and amortization of intangibles 4,720 7,872
Corporate, general, and administrative expenses 2,805 2,930
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TOTAL OPERATING EXPENSES 36,234 38,365
OPERATING INCOME 6,592 3,576
Net investment income 2 3,348
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INCOME BEFORE INCOME TAXES 6,594 6,924
Provision for income taxes 2,506 2,631
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INCOME BEFORE THE CUMULATIVE EFFECT OF A CHANGE IN
ACCOUNTING PRINCIPLE 4,088 4,293
CUMULATIVE EFFECT OF A CHANGE IN ACCOUNTING PRINCIPLE (47,388) --
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NET INCOME $ 43,300) $ 4,293
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DILUTED EARNINGS PER SHARE:
Diluted earnings before the cumulative effect of a change
in accounting principle per common share $ 0.21 $ 0.22
Cumulative effect of a change in accounting principle (2.40) --
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Diluted earnings per common share $ (2.19) $ 0.22
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Weighted average common dilutive shares 19,748 19,627
Actual common and common equivalent shares outstanding at
end of period 19,746 19,740
RECONCILIATION OF OPERATING INCOME TO
ADJUSTED BROADCAST CASH FLOW
Operating income per income statement $ 6,592 $ 3,576
Add:
Depreciation and amortization 4,720 7,872
Adj. for network compensation due vs. accrued 1,234 --
Non-cash compensation 615 76
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OPERATING CASH FLOW $ 13,161 $11,524
Corporate cash expenses 2,556 2,834
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BROADCAST CASH FLOW $ 15,717 $14,358
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-END-
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
May 7, 2002