Outdoor Channel Holdings, Inc. said it narrowed its operating losses on less revenue in the fourth quarter as its ad sales rose while subscription fees declined.


The company said advertising revenue rose 12.3 percent to $8.2 million for the fourth quarter ended Dec. 31, from $7.3 million in the prior-year period.

 

Subscriber fees declined 23.9 percent to $3.5 million from $4.6 million in the 2006 fourth quarter, principally reflecting Outdoor Channel’s new rate card included in its renewed agreement with the NCTC, which was overwhelmingly adopted by the existing members of the NCTC already distributing the channel in analog basic or expanded basic tiers.

 

Total revenues declined 1.7% to $11.7 million in the 2007 fourth quarter from $11.9 million in the three months ended December 31, 2006.


The company narrowed its loss from operations to $1.0 million for the 2007 fourth quarter from a loss from operations of $3.1 million for the prior-year period.


For the 2007 fourth quarter, the company’s net loss from continuing operations was $1.6 million, or $0.06 per share, consistent with the same 2006 period. Earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted for the effects of discontinued operations and share-based compensation expense, equaled $1.5 million for 2007, versus $1.4 million for 2006.


Full year results


For the 12 months ended Dec. 31, 2007, advertising sales increased 13.7 percent to $29.1 million from $25.6 million during 2006. Subscriber fee revenues rose modestly to $17.8 million from $17.7 million in the 12 months ended December 31, 2006. Total revenues for 2007 grew 8.3% to $46.9 million from $43.3 million in the comparable period a year ago.


The company posted a loss from operations of $3.4 million for 2007, compared with a loss from operations of $13.0 million the prior year, which included a write-off of $9.5 million of the carrying value of multi-system operator (MSO) relationships as a result of a changed distribution strategy adopted by the board in September 2006.


For 2007, Outdoor Channel Holdings incurred a net loss of $1.9 million, or $0.07 per share, compared with a net loss of $7.0 million, or $0.28 per share, for 2006. EBITDA, adjusted for the effects of discontinued operations and share-based compensation expense, equaled $9.5 million for 2007. In 2006, the company incurred a loss to earnings before interest, taxes, depreciation and amortization, adjusted for the effects of discontinued operations and share–based compensation expense of $3.6 million.


“During 2007, we were successful in establishing Outdoor Channel as America’s undisputed leader in outdoor TV and enhancing the value proposition available to cable and satellite operators through increased quality programming,” said Roger L. Werner, president and chief executive officer. “The year was also marked by numerous achievements that improved the overall prospects of Outdoor Channel for the long term. The divestiture of the company’s historic gold business enabled us to focus all of our efforts and resources entirely on our core operations at Outdoor Channel. Our affiliate sales team, advertising salesforce, production group and board of directors were all strengthened with the addition of cable industry veterans, and our finance team was augmented with the hiring of a chief accounting officer plus two additional CPAs, as well as the engagement of Ernst & Young as our new public accounting firm.

“Importantly, we updated the Outdoor Channel brand with a more contemporary, action-oriented look and feel, and incorporated these elements on air, as well as on our new multi-channel broadband site that launched during 2007. We were particularly pleased with Outdoor Channel’s record ratings performance in the 2007 fourth quarter, which we believe exemplifies the success of our new programming strategy and commitment to quality. These achievements, along with our renewed distribution agreement with the National Cable Television Cooperative (NCTC), set the stage for another exciting year in 2008.”