Belo to Cut $500,000 Per Station

[Sigonfile]

Layoffs and salary cuts on the horizon for Belo TV Stations.

Midwest News Update:
11/11/2008

Belo stations need to cut "several hundreds of thousands of dollars" from the budget, and part of that will be done in 2009 in the form of layoffs.

There's certain critera that must be followed in laying off IBEW employees. In the engineering unit, it's seniority-based, meaning cuts must come from the bottom up. In the producer/writer/assignment editor unit, one employee can be laid-off out of order (pretty much considered a "firing," as at least one manager recently described the practice) but from there it must be bottom up.

In the AFTRA unit, contracts must be honored, so it's either wait it out, or let them go, but still pay the full price of the contract. The latter doesn't seem to be a very cost-saving method.

Other at-will employees could be let go as needed, without any penalty. That includes managers, production workers, etc.

It's not clear how many people will be laid off, but the "magic number" cost-wise is believed to be between $400,000 and $500,000 that need to be cut. The latter number may be a bit conservative.

[Produce man]

And so it begins...

[wx4svr]

Not the best of news. Just a matter of time now until we see which company goes next.

[The Fedora]

geez. I hate to hear that. Those folks will be in my thoughts...

[LunchPenalty]

There's certain critera that must be followed in laying off IBEW employees. In the engineering unit, it's seniority-based, meaning cuts must come from the bottom up. In the producer/writer/assignment editor unit, one employee can be laid-off out of order (pretty much considered a "firing," as at least one manager recently described the practice) but from there it must be bottom up

Those criteria mean nothing. I just watched and experienced a station getting around those 'criteria'.

[Ralphie the buffalo]

I remember when Belo was a powerhouse.
My, how the mighty have fallen on hard times.
I hope all those who get let go find meaningful replacement work soon.

[WXFORECASTER]

Are you sure that it is per a station??? I think it is more of a % then 500,000 per a station!

[Sigonfile]

http://www.belo.com/images/spacer.gif

Belo Reports Results for Third Quarter 2008




Television Company's EPS from Continuing Operations Down $0.01 Due to Weak Economy, Hurricanes Ike and Gustav
DALLAS -- Belo Corp. (NYSE: BLC), one of the nation's largest pure-play, publicly-traded television companies, today reported earnings per share from continuing operations of $0.14 in the third quarter of 2008 compared to $0.15 in the third quarter of 2007.
Earnings per share from continuing operations for the third quarter of 2007 exclude the results of Belo's former newspaper businesses and related assets, which were spun off on February 8, 2008. Those results are included in discontinued operations and total $0.03 per share for the third quarter of 2007.
Dunia A. Shive, Belo's president and Chief Executive Officer, said, "Belo's third quarter results were impacted by worsening economic conditions that led to a total revenue decline of 6.4 percent. Third quarter results were also negatively impacted by Hurricanes Ike and Gustav, which hit our Houston and New Orleans markets, respectively. The financial impact related to the hurricanes totaled approximately $3.5 million, including an estimated $2.6 million in advertising revenue displaced due to continuous news coverage and lower audience levels stemming from lengthy power outages. Excluding the effects of the hurricanes and spin-off related costs from the third quarter of 2007, the Company's earnings from operations decreased just 3.4 percent, largely due to expense reductions. In addition, the Company reduced its debt by $42 million using cash generated from operations in the third quarter."
Shive continued, "Belo's operating margins and cash flows remain strong. While the difficult advertising environment is expected to continue, I'm confident we are taking the necessary steps to be an even stronger company when the eventual recovery takes hold."
Third Quarter in Review
Operating Results
Total revenues decreased 6.4 percent in the third quarter of 2008 versus the third quarter of 2007 as declines in Belo's core local and national spot business offset incremental gains from political and Olympics revenue. Total spot revenue, including political, was down 8.8 percent with 13 percent and 18 percent decreases in local and national spot, respectively. Third quarter 2008 revenues were affected by the hurricanes and more importantly a weak advertising environment, particularly in the automotive category which was down 26 percent.
Excluding the $2.6 million in displaced revenue due to the hurricanes, total revenue decreased 4.9 percent and total spot revenue, including political, decreased 7.2 percent. Approximately one-half of the 4.9 percent total revenue decline came from the Company's stations in Phoenix as that market continues to experience significant economic issues related to the housing crisis.
Third quarter Olympics revenue totaled $9.7 million. Political revenues in the third quarter were $11.7 million, up $8.4 million over the third quarter of 2007.
Advertising revenue associated with Belo's Web sites increased 18 percent to $7.9 million in the third quarter 2008, representing 4.6 percent of Belo's total revenues. Retransmission revenues totaled $8.4 million in the third quarter of 2008, a 41 percent increase compared to the third quarter of 2007. The Company expects to generate more than $31 million in retransmission revenue for full year 2008.
Total station expenses decreased 2.4 percent in the third quarter of 2008 versus the same period last year due primarily to the freezing of open positions company wide, staff reductions in certain markets and other cost-saving measures. Station expenses decreased 3.2 percent in the third quarter of 2008 when excluding one-time costs related to Hurricanes Ike and Gustav, which totaled almost $1 million. The Company's total employment at September 30, 2008 was about 5 percent lower than at December 31, 2007.
Station EBITDA for the third quarter of 2008 was down 13 percent versus the third quarter of 2007, and down 7.6 percent when excluding the effects of Hurricanes Ike and Gustav. Despite the current economic climate, the station EBITDA margin for the third quarter of 2008 was 36.1 percent, and 37.6 percent when excluding the effects of Hurricanes Ike and Gustav.
Corporate
Corporate operating costs were $6 million in the third quarter of 2008 as compared to $8.4 million in the third quarter of 2007, a decrease of 29 percent. The decrease was primarily due to lower share-based compensation, lower bonus expense and other cost-saving measures.
Third quarter combined station and corporate operating costs declined 4.3 percent, or 5 percent when excluding the effects of Hurricanes Ike and Gustav.
The Company's earnings from operations decreased 5.1 percent, or 3.4 percent when excluding the effects of Hurricanes Ike and Gustav in the third quarter of 2008 and spin-off related costs from the third quarter of 2007.
Other Items
Belo's depreciation and amortization expense totaled $11 million in the third quarter of 2008, a 9.6 percent decrease from the third quarter of 2007.
Interest expense decreased $2.4 million, or 10 percent, in the third quarter of 2008.
The Company paid down $42 million of debt during the third quarter and its total debt at September 30, 2008 was $1.138 billion. The Company's leverage and interest coverage ratios, as defined in the Company's credit facility, were 4.4 and 3.0 times, respectively, at September 30, 2008. The Company invested $3.6 million in capital expenditures in the third quarter bringing year-to-date expenditures to $20 million. The Company expects to invest a total of $25 million in capital expenditures for the year.
Discontinued Operations
On February 8, 2008, Belo completed the spin-off of its newspaper businesses and related assets into a separate publicly-traded company, A. H. Belo Corporation. The results of operations of the Newspaper Group and related corporate expenses are classified as discontinued operations for all periods prior to the spin-off.

Th
Fourth Quarter Outlook
In looking to the fourth quarter, Shive said, "The lack of consumer confidence and continued weak economic indicators point to a prolonged soft advertising environment. Current pacing trends indicate about an 8 percent decline in total revenue in the fourth quarter. We expect political revenues to finish around $36 million in the fourth quarter of 2008 and $56 million for the year.
"Because of these extraordinary market conditions, we will continue to focus on cost reduction and debt pay-down for the foreseeable future. We expect year-over-year fourth quarter station expense declines similar to what we experienced in the second and third quarters of this year. Full year corporate operating costs, exclusive of spin-off charges, are projected to be approximately $32 million, down from our previous guidance of $36 million, and a decrease of 21 percent from pro forma 2007 corporate operating expenses."
A conference call to discuss this earnings release and other matters of interest to shareholders and analysts will follow at 1:00 p.m. CST this afternoon. The conference call will be simultaneously Webcast on the Company's Web site (www.belo.com/invest). Following the conclusion of the
Belo Corp. is one of the nation's largest pure-play, publicly-traded television companies, with 2007 annual revenue of $777 million. The Company owns and operates 20 television stations reaching more than 14 percent of U.S. television households, including ABC, CBS, NBC, FOX, CW and MyNetwork TV affiliates, and their associated Web sites, in 15 highly-attractive markets across the United States. Belo stations consistently deliver distinguished journalism for which they have received significant industry recognition including nine Alfred I. duPont-Columbia University Silver Baton Awards; nine George Foster Peabody Awards; and 23 national Edward R. Murrow Awards all since 2000, and in each case more than any other commercial station group in the nation. Nearly all Belo stations rank first or second in their local market. Belo owns stations in seven of the top 25 markets in the nation, with six stations located in the fast-growing, top-14 markets of Dallas/Fort Worth, Houston, Seattle/Tacoma and Phoenix. Additionally, the Company has created regional cable news channels in Texas and the Northwest increasing its impact in those regions.

[The Fedora]

is it revenue? or is it budgeted future revenue?

Big, big difference that companies try to play off as a loss.

[WXFORECASTER]

http://www.belo.com/images/spacer.gif

Belo Reports Results for Third Quarter 2008




Television Company's EPS from Continuing Operations Down $0.01 Due to Weak Economy, Hurricanes Ike and Gustav
DALLAS -- Belo Corp. (NYSE: BLC), one of the nation's largest pure-play, publicly-traded television companies, today reported earnings per share from continuing operations of $0.14 in the third quarter of 2008 compared to $0.15 in the third quarter of 2007.
Earnings per share from continuing operations for the third quarter of 2007 exclude the results of Belo's former newspaper businesses and related assets, which were spun off on February 8, 2008. Those results are included in discontinued operations and total $0.03 per share for the third quarter of 2007.
Dunia A. Shive, Belo's president and Chief Executive Officer, said, "Belo's third quarter results were impacted by worsening economic conditions that led to a total revenue decline of 6.4 percent. Third quarter results were also negatively impacted by Hurricanes Ike and Gustav, which hit our Houston and New Orleans markets, respectively. The financial impact related to the hurricanes totaled approximately $3.5 million, including an estimated $2.6 million in advertising revenue displaced due to continuous news coverage and lower audience levels stemming from lengthy power outages. Excluding the effects of the hurricanes and spin-off related costs from the third quarter of 2007, the Company's earnings from operations decreased just 3.4 percent, largely due to expense reductions. In addition, the Company reduced its debt by $42 million using cash generated from operations in the third quarter."
Shive continued, "Belo's operating margins and cash flows remain strong. While the difficult advertising environment is expected to continue, I'm confident we are taking the necessary steps to be an even stronger company when the eventual recovery takes hold."
Third Quarter in Review
Operating Results
Total revenues decreased 6.4 percent in the third quarter of 2008 versus the third quarter of 2007 as declines in Belo's core local and national spot business offset incremental gains from political and Olympics revenue. Total spot revenue, including political, was down 8.8 percent with 13 percent and 18 percent decreases in local and national spot, respectively. Third quarter 2008 revenues were affected by the hurricanes and more importantly a weak advertising environment, particularly in the automotive category which was down 26 percent.
Excluding the $2.6 million in displaced revenue due to the hurricanes, total revenue decreased 4.9 percent and total spot revenue, including political, decreased 7.2 percent. Approximately one-half of the 4.9 percent total revenue decline came from the Company's stations in Phoenix as that market continues to experience significant economic issues related to the housing crisis.
Third quarter Olympics revenue totaled $9.7 million. Political revenues in the third quarter were $11.7 million, up $8.4 million over the third quarter of 2007.
Advertising revenue associated with Belo's Web sites increased 18 percent to $7.9 million in the third quarter 2008, representing 4.6 percent of Belo's total revenues. Retransmission revenues totaled $8.4 million in the third quarter of 2008, a 41 percent increase compared to the third quarter of 2007. The Company expects to generate more than $31 million in retransmission revenue for full year 2008.
Total station expenses decreased 2.4 percent in the third quarter of 2008 versus the same period last year due primarily to the freezing of open positions company wide, staff reductions in certain markets and other cost-saving measures. Station expenses decreased 3.2 percent in the third quarter of 2008 when excluding one-time costs related to Hurricanes Ike and Gustav, which totaled almost $1 million. The Company's total employment at September 30, 2008 was about 5 percent lower than at December 31, 2007.
Station EBITDA for the third quarter of 2008 was down 13 percent versus the third quarter of 2007, and down 7.6 percent when excluding the effects of Hurricanes Ike and Gustav. Despite the current economic climate, the station EBITDA margin for the third quarter of 2008 was 36.1 percent, and 37.6 percent when excluding the effects of Hurricanes Ike and Gustav.
Corporate
Corporate operating costs were $6 million in the third quarter of 2008 as compared to $8.4 million in the third quarter of 2007, a decrease of 29 percent. The decrease was primarily due to lower share-based compensation, lower bonus expense and other cost-saving measures.
Third quarter combined station and corporate operating costs declined 4.3 percent, or 5 percent when excluding the effects of Hurricanes Ike and Gustav.
The Company's earnings from operations decreased 5.1 percent, or 3.4 percent when excluding the effects of Hurricanes Ike and Gustav in the third quarter of 2008 and spin-off related costs from the third quarter of 2007.
Other Items
Belo's depreciation and amortization expense totaled $11 million in the third quarter of 2008, a 9.6 percent decrease from the third quarter of 2007.
Interest expense decreased $2.4 million, or 10 percent, in the third quarter of 2008.
The Company paid down $42 million of debt during the third quarter and its total debt at September 30, 2008 was $1.138 billion. The Company's leverage and interest coverage ratios, as defined in the Company's credit facility, were 4.4 and 3.0 times, respectively, at September 30, 2008. The Company invested $3.6 million in capital expenditures in the third quarter bringing year-to-date expenditures to $20 million. The Company expects to invest a total of $25 million in capital expenditures for the year.
Discontinued Operations
On February 8, 2008, Belo completed the spin-off of its newspaper businesses and related assets into a separate publicly-traded company, A. H. Belo Corporation. The results of operations of the Newspaper Group and related corporate expenses are classified as discontinued operations for all periods prior to the spin-off.

Th
Fourth Quarter Outlook
In looking to the fourth quarter, Shive said, "The lack of consumer confidence and continued weak economic indicators point to a prolonged soft advertising environment. Current pacing trends indicate about an 8 percent decline in total revenue in the fourth quarter. We expect political revenues to finish around $36 million in the fourth quarter of 2008 and $56 million for the year.
"Because of these extraordinary market conditions, we will continue to focus on cost reduction and debt pay-down for the foreseeable future. We expect year-over-year fourth quarter station expense declines similar to what we experienced in the second and third quarters of this year. Full year corporate operating costs, exclusive of spin-off charges, are projected to be approximately $32 million, down from our previous guidance of $36 million, and a decrease of 21 percent from pro forma 2007 corporate operating expenses."
A conference call to discuss this earnings release and other matters of interest to shareholders and analysts will follow at 1:00 p.m. CST this afternoon. The conference call will be simultaneously Webcast on the Company's Web site (www.belo.com/invest). Following the conclusion of the
Belo Corp. is one of the nation's largest pure-play, publicly-traded television companies, with 2007 annual revenue of $777 million. The Company owns and operates 20 television stations reaching more than 14 percent of U.S. television households, including ABC, CBS, NBC, FOX, CW and MyNetwork TV affiliates, and their associated Web sites, in 15 highly-attractive markets across the United States. Belo stations consistently deliver distinguished journalism for which they have received significant industry recognition including nine Alfred I. duPont-Columbia University Silver Baton Awards; nine George Foster Peabody Awards; and 23 national Edward R. Murrow Awards all since 2000, and in each case more than any other commercial station group in the nation. Nearly all Belo stations rank first or second in their local market. Belo owns stations in seven of the top 25 markets in the nation, with six stations located in the fast-growing, top-14 markets of Dallas/Fort Worth, Houston, Seattle/Tacoma and Phoenix. Additionally, the Company has created regional cable news channels in Texas and the Northwest increasing its impact in those regions.



I might be missing it but i dont see anything about cutting 500,000 out of the stations budget.

[Sigonfile]

It's in the first thread, slated to happen at a Belo in STL.