Fourth Quarter Highlights
- Net revenues for the quarter increased 5% to $123.2 million
- Station expenses increased 6% to $81.1 million
- Station operating income increased 3% to $42.1 million
- Adjusted EBITDA was flat at $35.2 million
- Adjusted net income per share was $0.34, down $0.02
- Net revenues for the year increased 12% to $460.2 million
- Station expenses increased 11% to $317.4 million
- Station operating income increased 14% to $142.9 million
- Adjusted EBITDA increased 12% to $114.7 million
- Adjusted net income per share increased 13% to $0.98
On January 6, 2017, the Company completed an acquisition of four stations in Charlotte, NC from Beasley Broadcast Group, Inc. for $24 million in cash. The Company commenced operations for three of the stations, The Link (WLNK-FM) and news/talk leader WBT AM/FM, on November 1, 2016 under a time brokerage agreement and the fourth station, The Fan (WFNZ-AM), upon closing. Operating results for the three stations operated under the TBA from November 1, 2016 through year end were included in the Company’s fourth quarter results as well as a $0.4 million TBA fee that the Company paid to Beasley.
In November, the Company entered into a new $540 million credit facility, including a $60 million revolver and $480 million term loan. The proceeds of the refinancing were used to repay the Company’s prior credit facility and to call its $220 million of outstanding 10.5% Senior Notes. The refinancing will generate approximately $10 million in pro forma annual interest expense savings.
The Company’s interest expense for the quarter was $9.1 million and first quarter 2017 interest expense is expected to be approximately $6 million, reflecting the savings from the new financing. The interest expense for the fourth quarter included interest on both the Senior Notes and the new term loan for a period of time.
Fourth quarter results include a $10.9 million loss on extinguishment of debt which includes the call premium paid to retire the Senior Notes and the write-off of deferred financing costs. In addition, the Company incurred $0.6 million in other expenses related to the refinancing.