TEMECULA, Calif., June 2 /PRNewswire-FirstCall/ -- Outdoor Channel Holdings, Inc. (Nasdaq: OUTD) today announced that it has taken steps at its Production Services business unit aimed at better aligning the segment with current business conditions and improving profitability going forward.
The Company announced today a workforce reduction representing approximately 30% of its Production Services employee base. Outdoor Channel Holdings is also taking steps to more effectively focus the unit's content development efforts on the outdoor programming category. The Company estimates that these efforts will result in a restructuring charge of approximately $300,000 during the second quarter. The reduction plan is not expected to have a material impact on the Skycam and CableCam aerial camera business.
"These initiatives reflect our efforts to further streamline and refocus our Production Services segment, with the goal of driving efficiencies and improving profitability," said Tom Hornish, Chief Operating Officer of Outdoor Channel Holdings. "By rightsizing the unit and better aligning its production activities with our content needs, we believe we can generate improved results with less overhead. We expect the results of this program to become evident beginning in the second half of 2010."
About Outdoor Channel Holdings, Inc.
Outdoor Channel Holdings, Inc. (Nasdaq: OUTD) owns and operates Outdoor Channel, America's leader in outdoor TV, and Winnercomm Inc., an Emmy Award winning production and interactive company. Outdoor Channel offers programming that captures the excitement of hunting, fishing, shooting, off-road motorsports, adventure and the Western lifestyle and can be viewed on multiple platforms including high definition, video-on-demand, as well as on a dynamic broadband website. Winnercomm Inc. is one of America's largest and highest quality producers of live sporting events and sports series for cable and broadcast television. Winnercomm also owns and operates the patented Skycam and CableCam aerial camera systems which provide dramatic overhead camera angles for major sports events, including college and NFL football. For more information please visit http://www.outdoorchannel.com.
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, about our expectations, beliefs, intentions, strategies regarding the future long-term value of the company resulting from the company's current actions or strategic initiatives and the future anticipated value of Outdoor Channel to our audience, distributors and advertisers. 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 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) service providers discontinuing or refraining from carrying Outdoor Channel; (2) a decline in the number of viewers from having Outdoor Channel placed in unpopular cable or satellite packages, or increases in subscription fees, established by the service providers; (3) a decrease in advertising revenue as a result of a deterioration in general economic conditions; (4) managing the company's growth and the integration of acquisitions; (5) decreased profitability if we are unable to generate sufficient revenues from our Production Services operations to offset its fixed costs; 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.
SOURCE Outdoor Channel Holdings, Inc.