Outdoor Channel Holdings Reports Fourth Quarter and Full Year 2012 Results

Outdoor Channel Holdings Reports Fourth Quarter and Full Year 2012 Results

Fourth Quarter Revenues Rise 8%; Consolidated Adjusted EBITDA Declines on
Promotion Focus

TEMECULA, Calif., March 18, 2013 (GLOBE NEWSWIRE) -- Outdoor Channel Holdings,
Inc. (Nasdaq:OUTD) today reported its operating results for the fourth quarter
and full year ended December 31, 2012.

Consolidated revenues for the quarter were $25.4 million, an 8% increase
compared with $23.6 million in the fourth quarter of 2011, driven primarily by
a 36% growth in revenues at our Aerial Cameras unit and a 5% growth in
combined advertising and subscriber revenues, net of a continued decline of
third-party revenues at Winnercomm as we continue to shift more of its focus
to programs produced for The Outdoor Channel.

Total operating expenses for the fourth quarter were $22.3 million, a 26%
increase compared to $17.6 million in operating expense for the fourth quarter
of 2011, driven primarily by approximately $2.3 million in higher advertising
expenses to promote both our new program slate which launched in late December
and the Channel to new subscribers, as well as increased costs related to
expanded revenues at our Aerial Cameras unit and $1.3 million in expenses
relating to the merger that we announced during the fourth quarter.

Resulting operating income for the fourth quarter 2012 was $3.1 million, a 48%
decrease from the $6.0 million of operating income generated in the fourth
quarter of 2011. Earnings before interest, taxes, depreciation and
amortization (EBITDA), adjusted for the effects of share-based compensation
expense and merger related expenses, was $6.1 million, a 19% decrease compared
to $7.5 million for the fourth quarter of 2011.

On a segment basis, our Outdoor Channel unit ("TOC") reported revenues of
$17.5 million for the quarter, a 5% increase compared to $16.7 million of
revenue for the fourth quarter of 2011 driven primarily by mid-single digit
growth in ad revenues and subscription fees. TOC's EBITDA, adjusted for
share-based compensation expense and merger related expenses, was $4.1
million, a 33% decline from the $6.1 million of adjusted EBITDA for the fourth
quarter of 2011 driven primarily by the higher advertising expense previously
noted.

Our Production Services unit generated revenues (before intercompany
eliminations) for the quarter of $2.4 million, a 3% decrease compared to $2.5
million for the fourth quarter of 2011 resulting primarily from lower third
party business, net of increased programming for TOC. Production Services'
EBITDA (including intercompany eliminations), adjusted for share-based
compensation expense, was $155,000 compared to adjusted EBITDA of $226,000,
with the decline principally driven by lower third-party revenue and related
margin contributions.

Our Aerial Cameras unit generated revenues for the quarter of $6.5 million, a
36% increase compared to $4.7 million in revenue for the fourth quarter of
2011 driven by a record number of football events and the ongoing U.S.
government project initiated in the second quarter of 2012. The Aerial Camera
unit's EBITDA, adjusted for share-based compensation expense, increased 56% to
$1.8 million primarily on improved revenues and related margin contributions.

Consolidated net income for the fourth quarter of 2012 was $1.3 million, or
$.05 per diluted share, compared to consolidated net income for the fourth
quarter of 2011 of $1.5 million, or $.06 per diluted share.

"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 Tom Hornish, President and Chief Executive Officer.
"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."

Full-Year Financial Results

On a full year basis, consolidated net revenues were $77.3 million, an 8%
increase compared to $71.9 million in 2011, as revenue gains at our Aerial
Cameras unit and our core TOC business more than offset the continued decline
in Winnercomm's third-party business.

Operating expenses for the year were $73.0 million, a 12% increase compared to
$65.1 million in operating expenses for 2011 principally on higher advertising
expense at TOC, merger related costs and increased costs related to increased
events and revenues at our Aerial Cameras unit, net of reduced costs
associated with our ActionCam litigation.

Resulting operating income for 2012 was $4.3 million, a 36% decrease from $6.8
million in operating income for 2011 with improved operating results at our
Winnercomm and Aerial Cameras units offset by increased advertising and merger
related costs at TOC. EBITDA, adjusted for share-based compensation expense
and merger related costs, was $12.6 million, a 1% decrease compared to $12.8
million for 2011, principally on higher advertising expense at TOC.

Our consolidated net income for the year finished at $1.9 million, or $.07 per
diluted share, essentially unchanged compared to net income of $1.8 million,
or $.07 per diluted share, for 2011.

Pending Sale

As announced by the Company on March 13, 2013, the Company has terminated its
InterMedia merger agreement and entered into a definitive agreement with
Kroenke Sports & Entertainment ("KSE") under which KSE will purchase the
Company for $8.75 per share in an all-cash transaction. The transaction is
subject to shareholder and regulatory approvals.

About Outdoor Channel Holdings, Inc.

Outdoor Channel Holdings, Inc. owns and operates Outdoor Channel and
Winnercomm Inc. Nielsen estimated that Outdoor Channel had approximately 39.1
million cable, satellite and telco subscribers for March 2013. Outdoor Channel
offers programming that captures the excitement of hunting, fishing, shooting,
adventure and the Western lifestyle and can be viewed on multiple platforms
including high definition, video-on-demand, as well as on a dynamic broadband
website. Winnercomm is one of America's leading and highest quality producers
of live sporting events and sports series for cable and broadcast television.
The Company also owns and operates the SkyCam and CableCam aerial camera
systems which provide dramatic overhead camera angles for major sports events,
including college and NFL football. For more information please visit
http://www.outdoorchannel.com.

Nielsen Media Research Universe Estimates for Outdoor Channel

Nielsen Media Research is the leading provider of television audience
measurement and advertising information services worldwide. Nielsen's estimate
of Outdoor Channel subscribers is made by Nielsen and is theirs alone and does
not represent opinions, forecasts or predictions of Outdoor Channel Holdings,
Inc. or its management. Outdoor Channel Holdings, Inc. does not by its
reference above or distribution imply its endorsement of or concurrence with
such information.

Use of Non-GAAP Financial Information

This press release includes "non-GAAP financial measures" within the meaning
of the Securities and Exchange Commission rules. The Company believes that
earnings before interest, taxes, depreciation and amortization (EBITDA),
adjusted for the effects of share-based compensation expense and merger
related costs, provides greater comparability regarding its ongoing operating
performance. This information is not intended to be considered in isolation or
as a substitute for net income calculated in accordance with U.S. GAAP. A
reconciliation of the Company's U.S. GAAP information to EBITDA, adjusted for
the effects of share-based compensation expense and merger related costs, is
provided in the attached table.

Safe Harbor Statement

Statements in this news release that are not historical are "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933,
as amended and Section 21E of the Securities Exchange Act of 1934, as amended,
including statements, without limitation, about our expectations, beliefs,
intentions, strategies regarding the future long-term value of the Company
resulting from the Company's current actions or strategic initiatives and the
future anticipated value of Outdoor Channel to our audience, distributors and
advertisers. The Company's actual results could differ materially from those
discussed in any forward-looking statements. The Company intends that such
forward-looking statements be subject to the safe-harbor provisions contained
in those sections. Such statements involve significant risks and uncertainties
and are qualified by important factors that could cause actual results to
differ materially from those reflected by the forward-looking statements. Such
factors include but are not limited to: (1) service providers discontinuing or
refraining from carrying Outdoor Channel; (2) a decline in the number of
viewers from having Outdoor Channel placed in unpopular cable or satellite
packages, or increases in subscription fees, established by the service
providers; (3) a decline in viewership and revenues related to increased
competition within the outdoor television segment; (4) a decrease in
advertising revenue as a result of a deterioration in general economic
conditions; (5) managing the Company's growth and the integration of future
acquisitions, if any; (6) decreased profitability if we are unable to generate
sufficient revenues from our Production Services operations to offset its
fixed costs; and other factors which are discussed in the Company's filings
with the Securities and Exchange Commission. For these forward-looking
statements, the Company claims the protection of the safe harbor for
forward-looking statements in Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934.

                                                                 
OUTDOOR CHANNEL HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(in thousands)
                                                                 
                                      Three Months Ended  Year Ended
                                      December 31         December 31
                                      2012      2011      2012      2011
Revenues:                              (unaudited)                 
Advertising                            $11,794 $11,288 $39,648 $36,918
Subscriber fees                        5,741    5,395    21,584   20,155
Production services                    7,858    6,908    16,090   14,782
                                                                 
Total revenues                         25,393   23,591   77,322   71,855
                                                                 
Cost of services:                                                 
Programming                            2,230    2,188    8,365    7,511
Satellite transmission fees            430      402      1,726    1,590
Production and operations              7,093    6,489    20,792   19,616
Other direct costs                     5        39       382      280
                                                                 
Total cost of services                 9,758    9,118    31,265   28,997
                                                                 
Other expenses:                                                   
Advertising                            3,251    924      7,423    2,845
Selling, general and administrative    7,196    6,816    29,502   30,385
Merger related expenses                1,286    --      1,942    --
Depreciation and amortization          761      735      2,898    2,874
                                                                 
Total other expenses                   12,494   8,475    41,765   36,104
                                                                 
Total operating expenses               22,252   17,593   73,030   65,101
                                                                 
Income from operations                 3,141    5,998    4,292    6,754
                                                                 
Other-than-temporary impairment on     (680)    --      (680)    --
auction-rate securities
Interest and other income, net         30       3        90       18
                                                                 
Income from operations before income   2,491    6,001    3,702    6,772
taxes
                                                                 
Income tax provision                   1,240    4,546    1,808    4,927
                                                                 
Net income                             1,251    1,455    1,894    1,845
Net income attributable to             --      --      --      --
noncontrolling interest
                                                                 
Net income attributable to controlling $1,251  $1,455  $1,894  $1,845
interest
                                                                 
Earnings per common share data:                                   
Basic                                  $0.05   $0.06   $0.08   $0.07
Diluted                                $0.05   $0.06   $0.07   $0.07
                                                                 
Weighted average number of common                                 
shares outstanding
Basic                                  25,507   24,912   25,137   24,821
Diluted                                26,214   25,686   25,736   25,633
                                                                 

                                                        
OUTDOOR CHANNEL HOLDINGS, INC. AND SUBSIDIARIES
Segment Operating Results
(in thousands)
                                                        
                             Three Months Ended  Year Ended
                             December 31         December 31
                             2012      2011      2012      2011
                             (unaudited)                 
Revenues                                                 
                                                        
TOC                           $17,535 $16,683 $61,232 $57,073
Production Services           2,445    2,529    6,963    9,228
Aerial Cameras                6,451    4,728    12,018   8,663
Eliminations                  (1,038)  (349)    (2,891)  (3,109)
Total revenues                $25,393 $23,591 $77,322 $71,855
                                                        
Cost of Services                                         
                                                        
TOC                           $4,644  $4,715  $18,914 $17,806
Production Services           1,881    2,079    6,022    7,874
Aerial Cameras                4,128    2,879    9,132    6,342
Eliminations                  (895)    (555)    (2,803)  (3,025)
Total cost of services        $9,758  $9,118  $31,265 $28,997
                                                        
Other Expenses                                           
                                                        
TOC                           $11,288 $6,905  $37,186 $28,966
Production Services           407      703      1,590    3,203
Aerial Cameras                809      887      3,009    3,955
Eliminations                  (10)     (20)     (20)     (20)
Total other expenses          $12,494 $8,475  $41,765 $36,104
                                                        
Income (Loss) from Operations                            
                                                        
TOC                           $1,603  $5,063  $5,132  $10,301
Production Services           157      (253)    (649)    (1,849)
Aerial Cameras                1,514    962      (123)    (1,634)
Eliminations                  (133)    226      (68)     (64)
Income from operations        $3,141  $5,998  $4,292  $6,754
                                                        

                                                                 
OUTDOOR CHANNEL HOLDINGS, INC. AND SUBSIDIARIES
Reconciliation of U.S. GAAP Measures to U.S. Non-GAAP Measures
(unaudited, in thousands)
                                                                 
                                       Three Months Ended Year Ended
                                       December 31        December 31
                                       2012      2011     2012      2011
                                                                 
Net Income                              $1,251  $1,455 $1,894  $1,845
                                                                 
Add/Subtract:                                                     
Other-than-temporary impairment on      680      --      680      --
auction-rate securities
Interest and other income, net          (30)     (3)     (90)     (18)
Income tax                              1,240    4,546   1,808    4,927
Depreciation and amortization           761      735     2,898    2,874
                                                                 
EBITDA                                  $3,902  $6,733 $7,190  $9,628
                                                                 
Adjusted for:                                                     
Share-based compensation expense        940      802     3,517    3,153
Merger related costs                    1,286    --      1,942    --
                                                                 
EBITDA as adjusted for share-based      $6,128  $7,535 $12,649 $12,781
compensation expense
                                                                 
Summary of Cost of Services                                       
Share-based compensation expense        $87     $60    $271    $238
Cost of services                        9,671    9,058   30,994   28,759
Total cost of services                  $9,758  $9,118 $31,265 $28,997
                                                                 
Summary of Selling, General and                                   
Administrative
Share-based compensation expense        $853    $742   $3,246  $2,915
Selling, general and administrative     6,343    6,074   26,256   27,470
Total selling, general and              $7,196  $6,816 $29,502 $30,385
administrative
                                                                 
Summary of Interest and Other Income,                             
net
Interest income                         $44     $27    $165    $111
Interest and other expense              (14)     (24)    (75)     (93)
Total interest and other income, net    $30     $3     $90     $18
                                                                 
EBITDA as adjusted by Segment                                     
Outdoor Channel                         $4,125  $6,122 $11,862 $14,446
Production Services *                   155      226     (192)    (969)
Aerial Cameras                          1,848    1,187   979      (696)
                                                                 
EBITDA as adjusted for share-based      $6,128  $7,535 $12,649 $12,781
compensation expense
                                                                 
* - eliminations included in Production                           
Services segment
                                                                 

                                                           
OUTDOOR CHANNEL HOLDINGS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(audited, in thousands)
                                                           
                                          December 31, 2012 December 31, 2011
                                                           
Assets                                                      
Current assets:                                             
Cash and cash equivalents                  $30,476         $19,498
Investment in available-for-sale           27,494           40,049
securities
Accounts receivable, net of allowance for  15,066           13,657
doubtful accounts
Other current assets                       17,799           14,066
Total current assets                       90,835           87,270
                                                           
Property, plant and equipment, net         14,121           11,875
Goodwill and amortizable intangible        43,330           43,538
assets, net
Investments in auction-rate securities     --              4,940
Deferred tax assets, net                   453              754
Deposits and other assets                  953              809
                                                           
Totals                                     $149,692        $149,186
                                                           
Liabilities and Stockholders' Equity                        
                                                           
Current liabilities                        $17,313         $14,955
Long-term liabilities                      749              906
Total liabilities                          18,062           15,861
                                                           
Total Outdoor Channel Holdings, Inc.       131,630          133,325
stockholders' equity
Noncontrolling interest                    --              --
Total equity                               131,630          133,325
                                                           
Totals                                     $149,692        $149,186
                                                           

                                                                 
OUTDOOR CHANNEL HOLDINGS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(in thousands)
                                                                 
                                      Three Months Ended  Year Ended
                                      December 31         December 31,
                                      2012      2011      2012      2011
Operating activities:                  (unaudited)                 
Net income                             $1,251  $1,455  $1,894  $1,845
Adjustments to reconcile net income to
net cash provided by (used in)                                    
operating activities:
Depreciation and amortization          761      735      2,898    2,874
Amortization of subscriber acquisition 151      345      1,582    1,511
fees
Loss on sale of equipment              --      120      17       151
Other-than-temporary impairment on     680      --      680      --
auction-rate securities
Provision for doubtful accounts        188      139      188      262
Share-based employee and director      940      802      3,517    3,153
compensation
Deferred tax provision, net            (945)    1,454    (666)    1,796
Excess tax benefit from share-based    (68)      --        (68)      --
compensation
                                                                 
Changes in operating assets and                                   
liabilities:
Accounts receivable                    (854)    (2,006)  (1,597)  2,835
Income tax refund receivable and       1,009    1,981    (721)    (704)
payable, net
Programming and production costs       256      (17)     (3,569)  (792)
Other current assets                   (204)    183      (61)     (1,547)
Deposits and other assets              (2)      10       101      107
Subscriber acquisition fees            (935)    --      (1,435)  (191)
Accounts payable and accrued expenses  469      1,463    1,893    (2,099)
Deferred revenue                       193      (1,468)  1,340    118
Deferred obligations                   (26)     76       43       83
Unfavorable lease obligations          (42)     (38)     (164)    (149)
Net cash provided by operating         2,822    5,234    5,872    9,253
activities
                                                                 
Investing activities:                                             
Purchases of property, plant and       (1,762)  (636)    (4,742)  (2,167)
equipment
Purchase of intangibles                --      --      --      (85)
Proceeds from sale of equipment        --      53       138      53
Purchases of available-for-sale        (18,988) (19,020) (72,256) (83,590)
securities
Proceeds from sale of
available-for-sale and auction-rate    16,010   12,118   89,363   70,736
securities
Net cash provided by (used in)         (4,740)  (7,485)  12,503   (15,053)
investing activities
                                                                 
Financing activities:                                             
Purchase of treasury stock             (144)    (150)    (1,157)  (1,050)
Payment of dividends on common stock   (6,308)  (6,230)  (6,308)  (6,230)
Excess tax benefit from share-based    68       --      68       --
compensation
Net cash used in financing activities  (6,384)  (6,380)  (7,397)  (7,280)
                                                                 
Net increase (decrease) in cash and    (8,302)  (8,631)  10,978   (13,080)
cash equivalents
Cash and cash equivalents, beginning   38,778   28,129   19,498   32,578
of period
Cash and cash equivalents, end of      $30,476 $19,498 $30,476 $19,498
period
                                                                 
Supplemental disclosure of cash flow                              
information:
Income taxes paid, net of refund       $1,204  $1,185  $3,207  $3,752
                                                                 
Supplemental disclosure of non-cash                               
investing and financing activities:
Reclassification adjustment of
other-than-temporary impairment losses $289    $--    $289    $--
on auction-rate securities recognized
in net income, net of tax
Change in fair value of
available-for-sale and auction-rate    $(25)   $40     $2      $65
securities, net of tax
Property, plant and equipment costs    $313    $211    $313    $211
incurred but not paid
Subscriber acquisition fees incurred   $ --      $ 488     $ --      $ 488
but not paid
                                                                 

CONTACT: For Company:
         Tom Allen
         Executive Vice President / Chief Operating & Financial Officer
         800-770-5750
         tallen@outdoorchannel.com
        
         For Investors:
         Brad Edwards
         Brainerd Communicators, Inc.
         212-986-6667
         edwards@braincomm.com