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Original Source: FD (FAIR DISCLOSURE) WIRE
OPERATOR: Good morning, ladies and gentlemen. and thank you for standing by. Welcome to the Barrington Broadcasting Group LLC fourth quarter earnings conference call. During today's presentation all parties will be in a listen only mode. (OPERATOR INSTRUCTIONS).
This conference is being recorded Tuesday, March 27th, 2007. At this time I'd like to turn the presentation over to the Chief Executive Officer, Jim Yager. Please go ahead, Sir.
JIM YAGER, CEO, BARRINGTON BROADCASTING GROUP LLC: Thank you and good morning. I would like to welcome you all to Barrington Broadcasting's fourth quarter and year ended December 31, 2006 earnings call.
Before we begin, I would like to remind you that certain statements made during this conference call which are not based on historical facts may be deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Because these forward-looking statements involve known and unknown risks and uncertainties there are important factors that could cost actual results, events or developments to differ materially from those expressed or implied by these forward-looking statements.
Such factors include those risks described in exhibit 99.1 to the annual report. All information is current as of the date of this call and the company undertakes no duty to update this information.
That said, I have with me this morning Warren Spector, our Chief Financial Officer and Chris Cornelius, our Chief Operating Officer.
Today, we will cover the results of the fourth quarter of 2006 and the twelve months ended December 31, 2006 on a pro forma basis for our original Barrington stations and the Raycom stations we acquired on August 11 of last year. In addition we will bring you up-to-date on a progress rehab made in integrating the twelve Raycom stations into our ongoing operations.
On a pro forma basis the combined Barrington Raycom stations' gross revenues in the fourth quarter 2006 were up $9.2 million or 27.3% over the fourth quarter of 2005 primarily due to a $10,300,000 increase in political revenues. Pro forma local revenues for the quarter were only down 7/10 of 1% and national revenues were down 2.7% due to the demands of our advertising (indiscernible) as a result of political.
Pro forma broadcast cash flow for the fourth quarter increased 61.8% to $17.5 million from $10.8 million. Pro forma gross revenues for the twelve-month period ended December 31, 2006 were up $18.2 million or 14.7% over the same period 2005. This increase was due to an increase in political revenues for the period of $15.4 million as well as an increase in local revenues of 5.5%, and an increase in national revenues of 1.4% for the period.
Pro forma broadcast cash flow for the twelve months ended December 31, 2006 increased 29.6% to $45.5 million from $35.1 million in 2005. At this point I would like to ask Warren Spector to review in more detail both fourth quarter and year end results for Barrington and Barrington plus Raycom on a pro forma basis.
WARREN SPECTOR, CFO, BARRINGTON BROADCASTING GROUP LLC: Thank you, Jim. The 10K which includes the annual audited financial statements will be filed tomorrow on our web site. The results included in the annual audited statements will include stations that Barrington owned and operated only during the periods that are being reported which include the twelve months ended December 31, 2006, 2005 and eight-month period ended December 31, 2004.
Results for the year ended December 31, 2006 include results for stations that were acquired in 2005, including Columbia, Jefferson City and Amarillo and those acquired in early 2006 which include two Myrtle Beach stations and approximately 4 1/2 months of the results of the twelve stations acquired from Raycom in August 2006.
So therefore what you will find are large increases in revenues and expenses in 2006 over 2005, which are primarily due to the acquired stations that are included in our report. So I'm not going to really speak to that. I'm going to focus on is the pro forma combined results for all the stations for the quarter and year ended December 31 as if they were owned by Barrington at the beginning of each period.
As Jim stated earlier, pro forma gross revenues for the fourth quarter increased 27.3% over the same period a year ago, primarily due to an increase in political revenues of $10.3 million for the quarter. Local revenues …