Outdoor Has Mixed Q4 - Multichannel

Outdoor Has Mixed Q4

Revenue Up 8%, Cash Flow Dips 19% As Advertising Expense Triples
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Revenue at Outdoor Channel rose 8% in the fourth quarter to $25.4 million, but increased advertising expenses to promote new shows helped drive cash flow down 19% in the period to $6.1 million.

Total operating expenses were up 26% in the quarter, driven primarily by a $2.3 million rise in advertising costs to promote its new programming slate launched in December and the network itself to new subscribers. Advertising expense for the quarter was about $3.3 million, triple the nearly $1 million Outdoor spent on advertising in the same period of 2011.

For the full year, revenue at the channel was up 8% to $77.3 million and cash flow was $12.6 million, a 1% decline from the previous year.

"We delivered steady revenue growth at our core TOC unit during the fourth quarter and for the full year as we continued to capitalize on our category leadership position," said Outdoor CEO Tom Hornish in a statement. "We also made significant gains in our total household distribution, adding another one million homes in the final quarter of 2012. Our Aerial Cameras unit also enjoyed a record quarter with expanded events and contributions from our government project. Obviously, we are in the midst of some exciting ownership changes for the company and despite the inevitable distractions that can occur in such an environment, we're proud of our team for their continued execution of our plans to more aggressively market and program the network, our core business."

Last week Outdoor Channel agreed to be acquired by Kroenke Sports & Entertainment in a deal valued at about $227 million. The transaction is expected to be completed in the second quarter