In its quarterly report to the SEC, Interep showed Q3 operating income before depreciation and amortization of 13.8 million, as opposed to a loss of 3.9 million a year ago. However, the bulk of that positive number was due to recording 11.9 million in contract termination revenue for the quarter, mostly from Emmis ending its representation by Interep at the end of Q3 to move to Katz. Commission revenues for the quarter were down 2.7% to 17.4 million, with the decrease largely due to the loss of the former Susquehanna stations, now owned by Cumulus Media Partners and repped by Katz. But Interep had some good news for investors in noting that selling expenses were down 32.1% to 13.7 million, largely due to the severance programs implemented in 2006 and this year to cut overhead at the rep company.
On the bottom line for Q3, net income applicable to common shareholders was 7.6 million, vs. a loss of 9.5 million a year ago. Interep is primarily a national rep for radio, but recently launched its second TV rep firm, both targeting Hispanic stations.
RBR/TVBR observation: Aside from operating improvement, which is showing up in its quarterly financials, the big task facing Interep Chairman Ralph Guild and CEO David Kennedy is refinancing the company’s 99 million in bonds coming due July 1, 2008. Interep recently disclosed that it had retained Jefferies & Company to help with that task (11/7/07 RBR #218).