CROWN MEDIA HOLDINGS INC

CIK:0001103837|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenue:
Advertising	$ 100,763	$ 78,378
Advertising by Hallmark Cards		759
Subscriber fees	21,736	20,896
Other revenue	1,724	479
Total revenue, net	124,223	100,512
Programming costs
Non-affiliates	40,725	33,818
Hallmark Cards affiliate	762	940
Other costs of services	5,491	4,455
Total cost of services	46,978	39,213
Selling, general and administrative expense (exclusive of depreciation and amortization expense shown separately below)	19,423	17,572
Marketing expense	4,675	4,608
Depreciation and amortization expense	856	679
Income from continuing operations before interest and income tax expense	52,291	38,440
Interest income	18	48
Interest expense	(3,024)	(9,137)
Income before income tax expense	49,285	29,351
Income tax expense	(18,119)	(10,845)
Net income	31,166	18,506
Other comprehensive income (loss):
Unrealized loss on derivatives, net of tax	(2,854)
Comprehensive income (loss)	$ 28,312	$ 18,506
Weighted average number of shares of common stock outstanding, basic and diluted	359,676	359,676
Net income per share from operations, basic and diluted	$ 0.09	$ 0.05

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 31,166,000	$ 18,506,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	43,362,000	36,515,000
Provision for allowance for doubtful accounts	963,000	130,000
Loss on sale of property and equipment		8,000
Deferred tax expense	16,771,000	10,251,000
Changes in operating assets and liabilities:
Decrease in accounts receivable	31,043,000	18,507,000
Additions to programming rights	(56,316,000)	(55,254,000)
Decrease (increase) in prepaid and other assets	(2,015,000)	1,995,000
Decrease in accounts payable, accrued and other liabilities	(4,827,000)	(4,945,000)
(Decrease) increase in interest payable	109,000	(7,174,000)
Decrease in derivative payable	(99,000)
Increase in programming rights payable	7,385,000	5,370,000
Decrease in payables to Hallmark Cards affiliates	(6,000)
Net cash provided by operating activities	67,536,000	23,909,000
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(416,000)	(201,000)
Proceeds from disposal of property and equipment		5,000
Net cash used in investing activities	(416,000)	(196,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on the 2011 Term Loan		(20,000,000)
Principal payments on capital lease obligations	(379,000)	(347,000)
Net cash used in financing activities	(379,000)	(20,347,000)
Net increase in cash and cash equivalents	66,741,000	3,366,000
Cash and cash equivalents, beginning of period	50,604,000	60,888,000
Cash and cash equivalents, end of period	117,345,000	64,254,000
Supplemental disclosure of cash and non-cash activities:
Interest paid	2,679,000	15,815,000
Taxes Paid		109,000
Capital expenditures included in accounts payable	$ 3,000	$ 137,000

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
ASSETS
Cash and cash equivalents	$ 117,345	$ 50,604
Accounts receivable, less allowance for doubtful accounts of $251 and $420, respectively	124,481	155,813
Programming rights	105,432	108,000
Prepaid programming rights	388
Prepaid and other assets	3,988	4,109
Total current assets	351,634	318,526
Long-term receivable	426	293
Programming rights	289,412	272,016
Prepaid programming rights	21,796	23,947
Property and equipment, net	8,193	8,588
Deferred tax assets, net	131,064	146,180
Debt issuance costs, net	760	805
Prepaid and other assets	6,840	3,749
Goodwill	314,033	314,033
Total assets	1,124,158	1,088,137
LIABILITIES:
Accounts payable and accrued liabilities	22,648	30,920
Audience deficiency reserve liability	11,173	10,928
Programming rights payable	71,260	73,654
Payables to Hallmark Cards affiliates	658	353
Interest payable	1,394	1,266
Current maturities of long-term debt	16,250	12,188
Total current liabilities	123,383	129,309
Accrued liabilities	22,696	19,399
Programming rights payable	58,687	48,909
Derivative liability	5,145	735
Long-term debt, net of current maturities	306,372	310,222
Total liabilities	$ 516,283	$ 508,574
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Class A common stock, $.01 par value; 500,000,000 shares authorized; 359,675,936 shares issued and outstanding as of both December 31, 2015 and March 31, 2016	$ 3,597	$ 3,597
Paid-in capital	2,062,818	2,062,818
Accumulated comprehensive loss	(3,012)	(158)
Accumulated deficit	(1,455,528)	(1,486,694)
Total stockholders' equity	607,875	579,563
Total liabilities and stockholders' equity	$ 1,124,158	$ 1,088,137