UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the quarterly period ended June 30, 2002 |
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OR |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the transition period from to |
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Commission File Number 0-19728 |
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GRANITE BROADCASTING CORPORATION
(exact name of registrant as specified in its charter)
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DELAWARE |
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13-3458782 |
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(State or other jurisdiction of |
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(I.R.S. Employer |
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incorporation or organization) |
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Identification No.) |
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767 Third Avenue |
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34th Floor |
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New York, New York 10017 |
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(address of principal executive offices) (zip code) |
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(212) 826-2530 |
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(registrant’s telephone number, including area code) |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ý No o
(APPLICABLE ONLY TO CORPORATE ISSUERS:)
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Class A Voting Common Stock, par value $.01 per share - - 178,500 shares outstanding at August 9, 2002; Common Stock (Nonvoting), par value $.01 per share — 18,578,810 shares outstanding at August 9, 2002.
PART I. FINANCIAL INFORMATION
GRANITE BROADCASTING CORPORATION
CONSOLIDATED BALANCE SHEET
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June 30, |
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December 31, |
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ASSETS |
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2002 |
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2001 |
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(Unaudited) |
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Current assets: |
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Cash and cash equivalents (including $9,286,326 of restricted cash at December 31, 2001) |
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$ |
28,371,138 |
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$ |
29,426,856 |
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Accounts receivable, net |
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21,561,594 |
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22,411,572 |
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Film contract rights |
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11,543,817 |
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16,077,027 |
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Other current assets |
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9,906,604 |
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6,131,223 |
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Net assets held for sale |
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- |
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33,201,988 |
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Total current assets |
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71,383,153 |
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107,248,666 |
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Non-current assets: |
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Property and equipment, net |
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34,288,285 |
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33,611,468 |
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Film contract rights and other non-current assets |
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14,491,244 |
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51,874,512 |
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Deferred financing fees, net |
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4,986,815 |
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14,887,940 |
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Intangible assets, net |
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309,844,725 |
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523,474,666 |
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Total assets |
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$ |
434,994,222 |
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$ |
731,097,252 |
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LIABILITIES AND STOCKHOLDERS’ DEFICIT |
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Current liabilities: |
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Accounts payable |
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$ |
2,245,165 |
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$ |
1,704,626 |
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Accrued interest |
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2,382,140 |
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4,255,195 |
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Other accrued liabilities |
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14,518,412 |
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2,943,466 |
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Film contract rights payable |
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23,308,667 |
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25,133,014 |
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Income taxes payable |
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36,139,130 |
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69,874 |
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Other current liabilities |
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6,806,931 |
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5,738,440 |
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Total current liabilities |
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85,400,445 |
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39,844,615 |
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Non-current liabilities: |
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Long-term debt |
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232,772,900 |
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401,206,439 |
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Film contract rights payable |
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23,259,701 |
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22,859,716 |
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Deferred tax liability |
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44,746,459 |
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68,868,284 |
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Other non-current liabilities |
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22,211,171 |
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24,353,351 |
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Cumulative exchangeable preferred stock, net of offering costs |
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197,947,678 |
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272,108,759 |
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Stockholders’ deficit: |
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Common Stock: 41,000,000 shares authorized consisting of 1,000,000 shares of Class A Voting Common Stock, $.01 par value, and 40,000,000 shares of Common Stock (Nonvoting), $.01 par value; 178,500 shares of Class A Voting Common Stock and 18,578,810 shares of Common Stock (Nonvoting) (18,447,927 shares at December 31, 2001) issued and outstanding |
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187,573 |
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186,264 |
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Accumulated deficit |
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(170,400,395 |
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(96,703,997 |
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Less: Unearned compensation |
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(834,310 |
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(1,329,179 |
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Treasury stock |
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(297,000 |
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(297,000 |
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Total stockholders’ deficit |
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(171,344,132 |
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(98,143,912 |
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Total liabilities and stockholders’ deficit |
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$ |
434,994,222 |
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$ |
731,097,252 |
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See accompanying notes.
1
GRANITE BROADCASTING CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2002 |
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2001 |
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2002 |
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2001 |
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(Unaudited) |
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(Unaudited ) |
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Net revenues |
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$ |
32,553,314 |
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$ |
30,506,207 |
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$ |
76,095,671 |
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$ |
57,354,511 |
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Station operating expenses |
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24,855,105 |
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25,381,503 |
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54,939,905 |
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53,338,794 |
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Depreciation expense |
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1,524,064 |
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1,510,050 |
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3,258,092 |
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3,013,444 |
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Amortization expense |
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4,759,622 |
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6,540,107 |
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14,238,048 |
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12,828,602 |
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Corporate expense |
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2,319,169 |
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2,498,838 |
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4,616,314 |
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5,037,686 |
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Non-cash compensation expense |
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325,707 |
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331,809 |
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654,871 |
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799,185 |
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Operating loss |
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(1,230,353 |
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(5,756,100 |
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(1,611,559 |
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(17,663,200 |
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Other expenses (income): |
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Interest expense |
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7,881,455 |
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