Outdoor Channel Holdings Reports 2005 Second Quarter Results

Aug 11, 2005, 01:00 ET from Outdoor Channel Holdings, Inc.

    TEMECULA, Calif., Aug. 11 /PRNewswire-FirstCall/ -- Outdoor Channel
 Holdings, Inc. (Nasdaq:   OUTD) today reported financial results for the three
 and six-month periods ended June 30, 2005.
     For the 2005 second quarter, total revenues increased 4.8 percent to
 $10.0 million from $9.6 million in the prior-year period.  Advertising
 revenue, principally generated from the sale of advertising time on The
 Outdoor Channel, amounted to $5.3 million for the current second quarter,
 compared with $5.4 million a year ago.  The slight decline is attributed to
 the company's replacement of certain infomercial inventory with a program to
 promote its newly launched high definition network, Outdoor Channel 2 HD.
 Subscriber fees increased 21.0 percent to $3.9 million from $3.2 million in
 the 2004 second quarter.  Membership income totaled $863,000, compared with
 $986,000 in the same period a year earlier.
     "We have made excellent progress improving our infrastructure to better
 position the company for future growth," said Perry T. Massie, president and
 chief executive officer of Outdoor Channel Holdings.  "Although we expect to
 see a significant increase in operating expenses in the second half of 2005,
 primarily because of our strategic plan to produce more programming in-house
 and launch Outdoor Channel 2 HD, we believe these strategies, along with our
 new advertising sales office in New York, expanded marketing efforts and new
 broadcast facility slated to open later this year, are sound investments that
 will create additional shareholder value for the long term."
     Total expenses for the second quarter of 2005 rose 17.5 percent to
 $9.2 million from $7.8 million in the corresponding 2004 period.  Net income
 for the 2005 second quarter totaled $512,000, or $0.02 per diluted share,
 based on 22.5 million weighted average shares outstanding, compared with
 $844,000, or $0.04 per diluted share, based on 15.6 million weighted average
 shares outstanding in the prior-year period.  The company's share count for
 the current second quarter includes the newly issued shares and the assumption
 of options related to the September 2004 merger involving The Outdoor Channel.
     For the first six months of 2005, total revenues grew 7.0 percent to
 $20.1 million from $18.8 million for the corresponding 2004 period.
 Advertising sales rose 3.5 percent to $10.5 million, and subscriber fees
 increased 18.1 percent to $7.5 million from the prior year-to-date period.
 Membership income totaled $2.0 million for the first half of 2005, compared
 with $2.2 million in the first half of last year.  Net income for the first
 six months of 2005 totaled $964,000, or $0.04 per diluted share, based on
 22.5 million weighted average shares outstanding.  This compares with net
 income of $2.0 million, or $0.10 per diluted share, based on 15.6 million
 weighted average shares outstanding, in the corresponding 2004 period.
     As of August 2005, Nielsen Media Research estimated approximately
 25.2 million homes subscribe to or receive The Outdoor Channel.  The company
 estimates that The Outdoor Channel is available to, and could potentially be
 subscribed to by, approximately 76 million homes across the country.
     Outdoor Channel Holdings continues to maintain a strong balance sheet.  At
 June 30, 2005, cash and cash equivalents totaled $9.0 million and total
 stockholders' equity increased to $95.4 million.
 
     Investor Conference Call
     Outdoor Channel Holdings' management will host an investor conference call
 tomorrow, August 12, 2005, at 8:00 a.m. PDT (11:00 a.m. EDT) to review the
 company's financials and operations for the quarter ended June 30, 2005.  The
 call will be open to all interested investors through a live, listen-only
 audio Web broadcast via the Internet at www.outdoorchannelholdings.com and
 www.earnings.com.  For those who are not available to listen to the live
 broadcast, the call will be archived for one year at both Web sites.  A
 telephonic playback of the conference call also will be available through
 5:00 p.m. PDT (8:00 p.m. EDT), Friday, August 19, by calling 800-642-1687
 (domestic) or 706-645-9291 (international) and using conference ID number
 8566453.
 
     About Outdoor Channel Holdings, Inc.
     Outdoor Channel Holdings, Inc. owns and operates The Outdoor Channel, a
 national television network dedicated to providing traditional outdoor
 programming to America's 82 million anglers, hunters and outdoor enthusiasts.
 The Outdoor Channel features approximately 100 weekly programs featuring
 hunting, fishing and shooting sports, as well as off road motor sports and
 other related lifestyle programming.  Nielsen Media Research estimates The
 Outdoor Channel's universe, through a combination of cable and satellite dish
 subscribers, to be approximately 25.2 million homes for August 2005.  The
 company also owns and operates related businesses that serve the interests of
 viewers of The Outdoor Channel and other outdoor enthusiasts, including
 Outdoor Channel 2 HD, LDMA-AU, Inc. (Lost Dutchman's) and Gold Prospector's
 Association of America, LLC. (GPAA).
 
     Safe Harbor Statement
     Statements in this news release that are not historical are
 "forward-looking statements" within the meaning of Section 27A of the
 Securities Act of 1933, as amended and Section 21E of the Securities Exchange
 Act of 1934, as amended, including statements, without limitation, regarding
 our expectations, beliefs, intentions or strategies regarding the future.  The
 company's actual results could differ materially from those discussed in any
 forward-looking statements.  The company intends that such forward-looking
 statements be subject to the safe-harbor provisions contained in those
 sections.  Such forward-looking statements relate to, among other things,
 future shareholder value, anticipated expenses including advertising,
 programming, personnel and others, Nielsen Media Research estimates regarding
 total households and cable and satellite homes subscribing to The Outdoor
 Channel, and other matters.  Such statements involve significant risks and
 uncertainties and are qualified by important factors that could cause actual
 results to differ materially from those reflected by the forward-looking
 statements.  Such factors include but are not limited to: (1) the company's
 ability to grow the subscriber base of The Outdoor Channel; (2) a decrease in
 operating results from offering launch support fees and other incentives to
 grow the subscriber base; (3) the triggering of a "most favored nations"
 clause with service providers from offering launch support fees and other
 incentives; (4) a decline in the number of viewers from having The Outdoor
 Channel placed in unpopular cable or satellite packages, or increases in
 subscription fees, established by the service providers; (5) service providers
 discontinuing or refraining from carrying The Outdoor Channel; and other
 factors which are discussed in the company's filings with the Securities and
 Exchange Commission.  For these forward-looking statements, the company claims
 the protection of the safe harbor for forward-looking statements in Section
 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange
 Act of 1934.
 
 
 
                OUTDOOR CHANNEL HOLDINGS, INC. AND SUBSIDIARIES
           Unaudited Condensed Consolidated Statements of Operations
                     (In thousands, except per share data)
 
                                 Three Months Ended        Six Months Ended
                                      June 30,                 June 30,
                                   2005       2004         2005       2004
      Revenues:
        Advertising              $5,257     $5,352       $10,516    $10,164
        Subscriber fees           3,894      3,219         7,536      6,380
        Membership income           863        986         2,023      2,218
 
          Total revenues         10,014      9,557        20,075     18,762
 
      Expenses:
        Satellite
         transmission fees          616        586         1,249      1,177
        Advertising               2,062      1,491         3,756      2,805
        Programming                 531        895         1,052      1,290
        Selling, general
         and administrative       5,967      4,840        12,453      9,470
 
          Total expenses          9,176      7,812        18,510     14,742
 
      Income from operations        838      1,745         1,565      4,020
 
      Other income, net              38         30            90         59
 
      Income before income
       taxes and minority
       interest                     876      1,775         1,655      4,079
 
      Income tax provision          364        704           691      1,633
 
      Income before minority
       interest                     512      1,071           964      2,446
 
      Minority interest in net
       income of consolidated
       subsidiary                    --        227            --        489
 
      Net income                   $512       $844          $964     $1,957
 
      Earnings per common share:
        Basic                     $0.03      $0.06         $0.05      $0.13
        Diluted                   $0.02      $0.04         $0.04      $0.10
 
      Weighted average number
       of common shares
       outstanding:
        Basic                    18,558     15,053        18,516     14,960
        Diluted                  22,513     15,593        22,453     15,556
 
 
 
                OUTDOOR CHANNEL HOLDINGS, INC. AND SUBSIDIARIES
                     Condensed Consolidated Balance Sheets
                     (In thousands, except per share data)
 
                                                     June 30,     December 31,
                                                       2005           2004
                                                   (unaudited)
 
      ASSETS
      Cash and cash equivalents                        $9,007        $13,105
      Accounts receivable, net of allowance
       for doubtful accounts of $347 and $207           5,075          4,848
      Prepaid programming costs                         2,606            606
 
      Total current assets                             21,794         21,726
 
      Property, plant and equipment, net                9,305          6,726
      Totals                                         $102,142        $99,669
 
      Liabilities and Stockholders' Equity
      Total current liabilities                         5,213          4,684
 
      Total liabilities                                 6,767          6,187
      Total stockholders' equity                       95,375         93,482
 
      Totals                                         $102,142        $99,669
 
 

SOURCE Outdoor Channel Holdings, Inc.
    TEMECULA, Calif., Aug. 11 /PRNewswire-FirstCall/ -- Outdoor Channel
 Holdings, Inc. (Nasdaq:   OUTD) today reported financial results for the three
 and six-month periods ended June 30, 2005.
     For the 2005 second quarter, total revenues increased 4.8 percent to
 $10.0 million from $9.6 million in the prior-year period.  Advertising
 revenue, principally generated from the sale of advertising time on The
 Outdoor Channel, amounted to $5.3 million for the current second quarter,
 compared with $5.4 million a year ago.  The slight decline is attributed to
 the company's replacement of certain infomercial inventory with a program to
 promote its newly launched high definition network, Outdoor Channel 2 HD.
 Subscriber fees increased 21.0 percent to $3.9 million from $3.2 million in
 the 2004 second quarter.  Membership income totaled $863,000, compared with
 $986,000 in the same period a year earlier.
     "We have made excellent progress improving our infrastructure to better
 position the company for future growth," said Perry T. Massie, president and
 chief executive officer of Outdoor Channel Holdings.  "Although we expect to
 see a significant increase in operating expenses in the second half of 2005,
 primarily because of our strategic plan to produce more programming in-house
 and launch Outdoor Channel 2 HD, we believe these strategies, along with our
 new advertising sales office in New York, expanded marketing efforts and new
 broadcast facility slated to open later this year, are sound investments that
 will create additional shareholder value for the long term."
     Total expenses for the second quarter of 2005 rose 17.5 percent to
 $9.2 million from $7.8 million in the corresponding 2004 period.  Net income
 for the 2005 second quarter totaled $512,000, or $0.02 per diluted share,
 based on 22.5 million weighted average shares outstanding, compared with
 $844,000, or $0.04 per diluted share, based on 15.6 million weighted average
 shares outstanding in the prior-year period.  The company's share count for
 the current second quarter includes the newly issued shares and the assumption
 of options related to the September 2004 merger involving The Outdoor Channel.
     For the first six months of 2005, total revenues grew 7.0 percent to
 $20.1 million from $18.8 million for the corresponding 2004 period.
 Advertising sales rose 3.5 percent to $10.5 million, and subscriber fees
 increased 18.1 percent to $7.5 million from the prior year-to-date period.
 Membership income totaled $2.0 million for the first half of 2005, compared
 with $2.2 million in the first half of last year.  Net income for the first
 six months of 2005 totaled $964,000, or $0.04 per diluted share, based on
 22.5 million weighted average shares outstanding.  This compares with net
 income of $2.0 million, or $0.10 per diluted share, based on 15.6 million
 weighted average shares outstanding, in the corresponding 2004 period.
     As of August 2005, Nielsen Media Research estimated approximately
 25.2 million homes subscribe to or receive The Outdoor Channel.  The company
 estimates that The Outdoor Channel is available to, and could potentially be
 subscribed to by, approximately 76 million homes across the country.
     Outdoor Channel Holdings continues to maintain a strong balance sheet.  At
 June 30, 2005, cash and cash equivalents totaled $9.0 million and total
 stockholders' equity increased to $95.4 million.
 
     Investor Conference Call
     Outdoor Channel Holdings' management will host an investor conference call
 tomorrow, August 12, 2005, at 8:00 a.m. PDT (11:00 a.m. EDT) to review the
 company's financials and operations for the quarter ended June 30, 2005.  The
 call will be open to all interested investors through a live, listen-only
 audio Web broadcast via the Internet at www.outdoorchannelholdings.com and
 www.earnings.com.  For those who are not available to listen to the live
 broadcast, the call will be archived for one year at both Web sites.  A
 telephonic playback of the conference call also will be available through
 5:00 p.m. PDT (8:00 p.m. EDT), Friday, August 19, by calling 800-642-1687
 (domestic) or 706-645-9291 (international) and using conference ID number
 8566453.
 
     About Outdoor Channel Holdings, Inc.
     Outdoor Channel Holdings, Inc. owns and operates The Outdoor Channel, a
 national television network dedicated to providing traditional outdoor
 programming to America's 82 million anglers, hunters and outdoor enthusiasts.
 The Outdoor Channel features approximately 100 weekly programs featuring
 hunting, fishing and shooting sports, as well as off road motor sports and
 other related lifestyle programming.  Nielsen Media Research estimates The
 Outdoor Channel's universe, through a combination of cable and satellite dish
 subscribers, to be approximately 25.2 million homes for August 2005.  The
 company also owns and operates related businesses that serve the interests of
 viewers of The Outdoor Channel and other outdoor enthusiasts, including
 Outdoor Channel 2 HD, LDMA-AU, Inc. (Lost Dutchman's) and Gold Prospector's
 Association of America, LLC. (GPAA).
 
     Safe Harbor Statement
     Statements in this news release that are not historical are
 "forward-looking statements" within the meaning of Section 27A of the
 Securities Act of 1933, as amended and Section 21E of the Securities Exchange
 Act of 1934, as amended, including statements, without limitation, regarding
 our expectations, beliefs, intentions or strategies regarding the future.  The
 company's actual results could differ materially from those discussed in any
 forward-looking statements.  The company intends that such forward-looking
 statements be subject to the safe-harbor provisions contained in those
 sections.  Such forward-looking statements relate to, among other things,
 future shareholder value, anticipated expenses including advertising,
 programming, personnel and others, Nielsen Media Research estimates regarding
 total households and cable and satellite homes subscribing to The Outdoor
 Channel, and other matters.  Such statements involve significant risks and
 uncertainties and are qualified by important factors that could cause actual
 results to differ materially from those reflected by the forward-looking
 statements.  Such factors include but are not limited to: (1) the company's
 ability to grow the subscriber base of The Outdoor Channel; (2) a decrease in
 operating results from offering launch support fees and other incentives to
 grow the subscriber base; (3) the triggering of a "most favored nations"
 clause with service providers from offering launch support fees and other
 incentives; (4) a decline in the number of viewers from having The Outdoor
 Channel placed in unpopular cable or satellite packages, or increases in
 subscription fees, established by the service providers; (5) service providers
 discontinuing or refraining from carrying The Outdoor Channel; and other
 factors which are discussed in the company's filings with the Securities and
 Exchange Commission.  For these forward-looking statements, the company claims
 the protection of the safe harbor for forward-looking statements in Section
 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange
 Act of 1934.
 
 
 
                OUTDOOR CHANNEL HOLDINGS, INC. AND SUBSIDIARIES
           Unaudited Condensed Consolidated Statements of Operations
                     (In thousands, except per share data)
 
                                 Three Months Ended        Six Months Ended
                                      June 30,                 June 30,
                                   2005       2004         2005       2004
      Revenues:
        Advertising              $5,257     $5,352       $10,516    $10,164
        Subscriber fees           3,894      3,219         7,536      6,380
        Membership income           863        986         2,023      2,218
 
          Total revenues         10,014      9,557        20,075     18,762
 
      Expenses:
        Satellite
         transmission fees          616        586         1,249      1,177
        Advertising               2,062      1,491         3,756      2,805
        Programming                 531        895         1,052      1,290
        Selling, general
         and administrative       5,967      4,840        12,453      9,470
 
          Total expenses          9,176      7,812        18,510     14,742
 
      Income from operations        838      1,745         1,565      4,020
 
      Other income, net              38         30            90         59
 
      Income before income
       taxes and minority
       interest                     876      1,775         1,655      4,079
 
      Income tax provision          364        704           691      1,633
 
      Income before minority
       interest                     512      1,071           964      2,446
 
      Minority interest in net
       income of consolidated
       subsidiary                    --        227            --        489
 
      Net income                   $512       $844          $964     $1,957
 
      Earnings per common share:
        Basic                     $0.03      $0.06         $0.05      $0.13
        Diluted                   $0.02      $0.04         $0.04      $0.10
 
      Weighted average number
       of common shares
       outstanding:
        Basic                    18,558     15,053        18,516     14,960
        Diluted                  22,513     15,593        22,453     15,556
 
 
 
                OUTDOOR CHANNEL HOLDINGS, INC. AND SUBSIDIARIES
                     Condensed Consolidated Balance Sheets
                     (In thousands, except per share data)
 
                                                     June 30,     December 31,
                                                       2005           2004
                                                   (unaudited)
 
      ASSETS
      Cash and cash equivalents                        $9,007        $13,105
      Accounts receivable, net of allowance
       for doubtful accounts of $347 and $207           5,075          4,848
      Prepaid programming costs                         2,606            606
 
      Total current assets                             21,794         21,726
 
      Property, plant and equipment, net                9,305          6,726
      Totals                                         $102,142        $99,669
 
      Liabilities and Stockholders' Equity
      Total current liabilities                         5,213          4,684
 
      Total liabilities                                 6,767          6,187
      Total stockholders' equity                       95,375         93,482
 
      Totals                                         $102,142        $99,669
 
 SOURCE  Outdoor Channel Holdings, Inc.