Hunt Valley-based Sinclair Broadcast Group reported that it was restatingits earnings for the second, third and fourth quarters of 2005 and the first quarter of 2006, according to a filing with the Securities and Exchange Commission.
The company blamed an accounting error for its June 2005 treatment of its exchange of Series D convertible stock for 6 percent convertible debentures due 2012.
The error was related to how to calculate earnings and expenses concerning the exchange, the company stated in its SEC filing.
Sinclair Broadcast Group owns, operates and provides programs to 58 television stations across the nation. Its flagship station is WBFF Fox Channel 45 in Baltimore. Sinclair also owns WNUV Warner Bros. Channel 54 in Baltimore.
The new earnings statement indicates Sinclair had a net income of $145,144,000, or $1.74 per share, for the second quarter of 2005 instead of its previous reported $145,140,000 or $1.67 per share.
Third quarter net income for 2005 was $31.2 million, or 36 cents per share, instead of the previously reported $31.6 million or 37 cents per share, the company reported in its SEC filing.
For the fourth quarter, Sinclair reported a loss of $1.75 million, or 2 cents per share. And for the first quarter of 2006, the company reported net income of $10 million, or 11 cents per share, instead of the previously reported $11.2 million or 13 cents per share.
In the SEC filings, Sinclair management stated that it has what it calls “duopolies” ? markets where it owns or operates two stations ? in 11 television markets.
“We believe that owning duopolies and operating stations under local marketing agreements enables us to accomplish two very important strategic business objectives increasing our share of revenues available in each market and operating television stations more efficiently by minimizing costs,” the company stated in its SEC filing.
