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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

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) August 6, 2002

The Liberty Corporation

(Exact name of Registrant as Specified in Charter)
         
South Carolina   1-5846   57-0507055
(State or Other Jurisdiction   (Commission File   (IRS Employer
of Incorporation)   Number)   Identification No.)
         
135 South Main Street, Greenville, SC     29601
(Address of Principal Executive Offices)     (Zip Code)

Registrant’s telephone number, including area code (864) 241-5400

n/a

(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 SECOND QUARTER RESULTS

Greenville, SC (August 6, 2002) — The Liberty Corp. (NYSE: LC) today reported financial results for quarter ended June 30, 2002. Liberty owns and operates 15 network-affiliated television stations along with other ancillary businesses.

     For the quarter, net revenue increased 8% to $51.8 million compared with $48.1 million for the prior year while broadcast cash flow increased 14% to $22.6 million from $19.9 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.

 

 

LC Reports Second Quarter Results
Page 2
August 6, 2002

     Year to date, net revenue has increased 5% compared to the same period of the prior year and Broadcast Cash Flow has increased 12% for the same period.

     “The dominant position of our television properties continues to enhance our ability to grow our business,” said Hayne Hipp, Chief Executive Officer of Liberty. “This is best illustrated by the fact that our core business of local and national ad sales, excluding the seasonally anticipated revenue from the Olympics and political advertising, continues to grow this quarter.”

     A major group broadcaster, Liberty owns 15 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.

     For further information about Liberty, visit the corporate website,

     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   Six Months Ended
          June 30,   June 30,
         
 
(In 000's, except per share data)   2002   2001   2002   2001
   
 
 
 
        (Unaudited)
REVENUES
                                
 
Station revenues (net of commissions)
   $ 47,586     $ 44,665     $ 87,096     $ 83,731  
 
Cable advertising and other revenues
     4,219       3,473       7,535       6,348  
 
    
     
     
     
 
   
Net revenues
     51,805       48,138       94,631       90,079  
 
EXPENSES
                                
Operating expenses
     28,897       26,289       55,754       51,888  
Amortization of program rights
     1,864       1,972       3,716       3,936  
Depreciation and amortization of intangibles
     4,190       7,448       8,910       15,320  
Corporate, general, and administrative expenses
     2,795       3,221       5,600       6,151  
 
    
     
     
     
 
   
Total operating expenses
     37,746       38,930       73,980       77,295  
 
Operating income
     14,059       9,208       20,651       12,784  
 
Net investment income
     198       2,534       200       5,882  
 
    
     
     
     
 
Income before income taxes
     14,257       11,742       20,851       18,666  
Provision for income taxes
     5,417       4,462       7,923       7,093  
 
    
     
     
     
 
Income before the cumulative effect of a change in accounting principle
     8,840       7,280       12,928       11,573  
Cumulative effect of a change in accounting principle
     —       —       (47,388 )     —  
 
    
     
     
     
 
     
NET INCOME
     8,840       7,280     $ (34,460 )   $ 11,573  
 
    
     
     
     
 
 
DILUTED EARNINGS PER SHARE:
                                
Diluted earnings before the cumulative effect of a change in accounting principle per common share
   $ 0.44     $ 0.37     $ 0.65     $ 0.59  
Cumulative effect of a change in accounting principle
     —       —       (2.38 )     —  
 
    
     
     
     
 
Diluted earnings per common share
   $ 0.44     $ 0.37     $ (1.73 )   $ 0.59  
 
    
     
     
     
 
 
Weighted average common dilutive shares
     19,902       19,702       19,882       19,665  
Actual common and common equivalent shares outstanding at end of period
     19,787       19,575       19,787       19,575  
 
RECONCILIATION OF OPERATING INCOME TO ADJUSTED BROADCAST CASH FLOW
                                
 
Operating income per income statement
   $ 14,059     $ 9,208     $ 20,651     $ 12,784  
Add:
                                
 
Depreciation and amortization
     4,190       7,448       8,910       15,320  
 
Adj. for network compensation due vs. accrued
     1,232       —       2,466       —  
 
Non-cash compensation
     600       233       1,215       309  
 
    
     
     
     
 
Operating cash flow
     20,081       16,889     $ 33,242     $ 28,413  
 
Corporate cash expenses
     2,550       2,962       5,106       5,795  
 
    
     
     
     
 
Broadcast cash flow
   $ 22,631     $ 19,851     $ 38,348     $ 34,208  
 
    
     
     
     
 

-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
       
        Name: Martha Williams
        Title: Vice President, General Counsel and Secretary
         
        August 6, 2002