Granite Broadcasting posts increased net revenue in fourth quarter, full-year 2006

By Caroline Salls

Pittsburgh, March 13 - Granite Broadcasting Corp.'s net revenue increased 14% during the fourth quarter of 2006 to $37.2 million from $32.71 million and almost 9% for the full year to $128 million from $117.62 million, according to a company news release.

Granite said expenses increased 3.3% to $26.48 million in the fourth quarter and were flat at $92.19 million for the full year.

According to the release, broadcast cash flow increased 53% to $10.8 million from $7.07 million during the fourth quarter and 41% to $35.84 million from $25.44 million for the full year, and operating margins improved 740 basis points in the fourth quarter and 640 bps for the full year.

"We are extremely pleased with our results for both the fourth quarter and full year, as our group achieved solid revenue growth," chairman and chief executive officer W. Don Cornwell said in the release. "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."

Chief operating officer John Deushane said in the release, "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 million in new local direct business this year, and we continue to drive our local business with many new projects for 2007."

Cornwell said the company is continuing to make progress in its restructuring and remains on track for approval of its reorganization plan in mid-April.

For the full year 2007, the company said it expects that the natural cyclical declines in political and Olympic advertising will be offset by growth in non-political local revenue and the inclusion of a full year of operations of the Binghamton station.

Expenses are expected to increase slightly because of the addition of a full year of operations of the Binghamton station.

Granite, a New York-based owner and operator of network-affiliated television stations, made a pre-packaged Chapter 11 filing on Dec. 11 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 06-12984.

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