Outdoor Channel Holdings, Inc. said revenues were up 5.0% for the three month period ended March 31, 2010 due largely to the acquisition of Winnercomm Inc.
Total revenues amounted to $17.8 million for the 2010 first quarter, compared with $17.0 million in the corresponding period a year ago.
Advertising revenue for the 2010 first quarter decreased 6.4% to $7.3 million from $7.8 million in the prior-year period. The decline in advertising revenue is primarily the result of a decrease in the number of time-buy programs due to their being contracted during the weak advertising market in 2009.
Subscriber fees totaled $4.8 million for the first quarter of 2010 compared to subscriber fees of $4.7 million in the prior-year period. The increase in subscriber fees is due primarily to increases in rates and the number of subscribers at several service providers.
In January of 2009, Outdoor Channel Holdings acquired certain assets of Winnercomm Inc. and its related entities. The revenues generated by Winnercomm are reported as “Production services.” Production services revenue totaled $5.7 million during the 2010 first quarter compared to $4.5 million in the prior-year period. These revenues were comprised primarily of production services for customer-owned telecasts and marketing.
“The short-form and Internet advertising environment continues to improve and results in these categories were up year over year during the first quarter,” said Roger L. Werner, President and Chief Executive Officer. “We are encouraged by this performance as well as the positive business trends we are seeing in the current quarter. We remain focused on execution, including expanding the distribution of our network, increasing our viewing audience, strengthening our digital offerings and increasing profitability at Winnercomm. Bolstered by our category-leading content, these efforts have further increased our value proposition to advertisers who need to accurately target the outdoor enthusiast market. As we seek to maximize returns from our business, we have also maintained a strong balance sheet, which provides us with ample flexibility in reviewing potential acquisitions that can enhance our growth profile.”
Outdoor Channel Holdings incurred a net loss of $1.5 million, or 6 cents per diluted share, for the 2010 first quarter, compared to a net loss of $1.3 million, or 5 cents per diluted share, in the prior-year period.
Earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted for the effects of share-based compensation expense and acquisition and integration costs, amounted to ($0.7) million for the 2010 first quarter, compared to breakeven in the prior-year period. For the legacy Outdoor Channel business, earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted for the effects of share-based compensation expense and acquisition and integration costs, totaled $0.9 million for the 2010 first quarter compared to $1.6 million in the prior-year period.
