June 18, 2002
Belo presents at the Mid-Year Media Review Conference
Dallas, TX -- Belo (NYSE: BLC) presented at the Mid-Year Media Review in New York on Tuesday, June 18, at 2:00 p.m. EDT.
Providing near-term guidance to the investment community on the Company's business strategies, financial performance and current operations.
The full text of the presentation is accessible on Belo's Web site from the News Releases page at www.belo.com and a replay of the Webcast is available at www.midyearmediareview.com through July 2.
Presenting an overview of Belo's television, newspaper and interactive operations were Robert Decherd, Belo's chairman, president and chief executive officer, Dunia Shive, Belo's executive vice president/chief financial officer and Jim Moroney, publisher and chief executive officer of The Dallas Morning News.
Decherd said, "Belo serves its audiences through responsible, quality journalism. We believe journalistic excellence breeds a unique relationship with our communities and audiences. Coupled with our cluster strategy and the high-growth characteristics of our markets, these emphases clearly give Belo a unique ability to drive revenue, market share and financial results."
In discussing Belo's second quarter financial performance, Shive said, "While it is premature to say that an economic recovery is underway, we are encouraged by some of the things we are seeing in the second quarter.
"In the Television Group, revenues are strengthening and visibility is improving. Spot revenues were up slightly in April and increased 4.3 percent in May. In June, spot revenues are pacing up in the high-single digits. We currently expect Television Group spot revenues to be up mid-single digits in the second quarter overall.
"Adjusting for the effect of extra Sundays where appropriate, revenue declines at The
Dallas Morning News have lessened each month in 2002 thru May. For the second quarter overall, we currently expect total Newspaper Group revenue to be down in the low-single digits.
"Total cash expenses in the second quarter should be better than the second quarter of last year by about 1 percent. We continue to benefit from the comprehensive cost reduction measures implemented during 2001 and lower newsprint expense.
However, these savings will be partially offset in the second quarter by increases in benefits costs, insurance costs, bonuses, which are only paid if full-year financial targets are met, marketing and promotion expense and the assumed filling of critical vacancies.
"Based on these revenue and expense assumptions, Belo's operating cash flow should be up in the mid-single digits in the second quarter. Due mostly to improvement in television revenue, we expect second quarter earnings per share to be higher than previously communicated.We currently expect EPS to be in the range of $0.30 to $0.31. In addition, we expect to record a non-cash credit of $0.02 related to the resolution of certain contingencies for properties disposed of at the end of 2000."
Belo is one of the nation's largest media companies with a diversified group of market-leading television, newspaper, cable and interactive media assets. A Fortune 1000 company with approximately 7,800 employees and $1.4 billion in annual revenues, Belo operates news and information franchises in some of America's most dynamic markets and regions, including Texas, the Northwest, the Southwest, Rhode Island, and the Mid-Atlantic region. Belo owns 19 television stations (six in the top 16 markets) reaching 13.9 percent of U.S. television households; owns or operates six cable news channels; and manages one television station through a local marketing agreement. Belo publishes four daily newspapers:The Dallas Morning News, The Providence Journal, The Press-Enterprise (Riverside, CA) and the Denton Record Chronicle (Denton, TX). Belo Interactive's new media businesses include 34 Web sites, several interactive alliances, and a broad range of Internet-based products. For more information, contact Dunia Shive, Belo's executive vice president/chief financial officer,or Carey Hendrickson, Belo's vice president of investor relations, at 214-977-6606. Additional information, including earnings releases, is available online at www.belo.com.
Statements in this communication concerning the Company's business outlook or future economic performance, anticipated profitability, revenues, expenses, capital expenditures or other financial items and other statements that are not historical facts, are "forward-looking statements" as the term is defined under applicable Federal Securities Laws.
Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those
Such risks, uncertainties and factors include, but are not limited to, changes in
advertising demand, interest rates and newsprint prices; technological changes;
development of Internet commerce; industry cycles; changes in pricing or other
actions by competitors and suppliers; regulatory changes; the effects of Company acquisitions and dispositions; and general economic conditions, as well as other risks detailed in the Company's filings with the Securities and Exchange Commission ("SEC"), including the Annual Report on Form 10-K.