Financially reorganized company also reports double-digit increase in broadcast cash flow.
Granite Broadcasting Corp. today reported fourth quarter and full-year 2006 results. Net revenue increased 14% during the quarter and almost 9% for the full year. Expenses increased 3.3% in the fourth quarter and were flat for the full year. Broadcast cash flow increased 53% during the fourth quarter and 41% for the full year.
Commenting on the results, W. Don Cornwell, chairman and chief executive officer, said, “We are extremely pleased with our results for both the fourth quarter and full year, as our group achieved solid revenue growth. Revenue from the new station we operate in Binghamton, strong political revenue and solid non-political local growth, particularly in Detroit, Duluth and Fresno, all contributed to our revenue performance. This, combined with prudent cost controls, resulted in a 41% increase in broadcast cash flow for 2006.”
John Deushane, chief operating officer, said: “Our stations have done a great job overcoming various hurdles in 2006, including a soft automotive advertising market and reduced network compensation. Our sales initiatives have added $7.0 million in new local direct business this year, and we continue to drive our local business with many new projects for 2007.
Deushane continued, “We are aggressively taking advantage of opportunities to leverage our local content by expanding local news into new distribution channels and time periods, time-shifting popular programming, as well as cross-promoting and crossselling across our platform. In San Francisco, our station now airs the only 9 p.m. newscast through our strategic partnership with market-leader KGO. Our stations in Fresno and Peoria also have arrangements in their respective markets to air their locally produced newscasts on their market’s My Network TV affiliated stations.”
Cornwell concluded, “We are very proud that our managers have continued to focus on the business and report outstanding results despite the natural distractions attendant with our financial restructuring. We would like to thank all of our employees as well as our customers and vendors for the confidence and support they have provided Granite as we work toward the successful completion of our financial reorganization. We continue to make progress in regards to our restructuring and remain on track for approval of our reorganization plan in mid-April 2007.
“We are very pleased that the court has approved our disclosure statement, which will be presented to our creditors for a vote by April 3, 2007. In addition, we welcome the court’s appointment of an examiner from the U.S. Trustee’s Office. We look forward to working with the examiner, whose expanded scope includes reviewing the actions of the company as well as all third parties, and sharing the process our board took in creating our reorganization plan. We believe this plan fairly addresses the interest of all our stakeholders and provides the best overall value.”
To read the company’s press release, click here.