Broadcast cash flow (BCF) is a financial metric for Broadcasting companies. It may be defined as follows:
Add:Depreciation and amortization
Add: Non-cash equity based compensation
Add: LMA fees and corporate overhead
Less: Program payments (adjusted to reflect reductions for impaired or expired rights in connection with acquisitions)
EBITDA is defined as BCF less corporate overheadexpenses. BCF is reported by some broadcasting companies because it is believed such data is a useful measure for evaluating the Company's operatingperformance. Broadcast cash flow and EBITDA eliminate the effect of depreciation and amortization which relate to acquisitions under the purchase method of accounting and the impact of accelerated program amortization and the impact of corporate expenses, and allow for an evaluation of the operating performance of the Company and its stations relative to that of the Company's competitors which may not have similar depreciation, amortization or corporate structures.
The different company's definition of broadcast cash flow and EBITDA may not be comparable to similarly titled measures presented by other companies.
Broadcast cash flow and EBITDA are not, and should not be used as an indicator or alternative to operating income Net loss or cash flow as reflected in the consolidated financial statements in organization