2009 annual report

Kentucky Broadcasters AssociationTHE VOICE OF KENTUCKY BROADCASTERS

2 KENTUCKY BROADCASTERS ASSOCIATION

“TeamKBA”hasdoneitagain!Wehavepulledoffanotherawesomeyearofmembershipservices,benefitsandprograms.Icallit“TeamKBA”becauseoursuccesswastrulyateameffort.Allofouraccomplishmentsin2009weretheresultofactionsbyindividu-albroadcasters,andinsomecasescompetitors,workingtogetherforacommoninterest.

This“Team”effortresultedin:•ContinuedsupportofbroadcastersbytheKentuckyCongressional Delegation.ThankyoutoalltheKBAmemberswhomadethe annuallobbyingtrip.•AgreatAnnualConventioninBowlingGreen. (EdGroveschairman)•PotentialopportunitiesforKBAmemberstoobtaingeneratorsfor theirstations.(EdHensonchairman)•ThedevelopmentofaDirectorofSalesfortheKentuckyAlliance ofRadioandTV.(KeithCasebolt,chairman)•PaidoffthemortgageontheKBAheadquarters.Thankyouto KBA“PEP”stations.•AsuccessfulseriesofsalestrainingsessionwithJoeBonura.Thank youtothemorethan300accountexecutivesthatparticipated.

IwanttothanktheexecutivecommitteeandtheKBAboardfortheirsupportandguidancethispastyear.Finally,athankyoutoGaryWhiteandPattiPullenforhelpingkeepour“Team”meettheirgoals. IthasbeenanhonortoserveaschairmanoftheKBAandIlookforwardtoworkingwithJeffRayin2010.

message from Chairman Tom Ulmer

contents

Chairman’s Message . . . . . . .2

President/CEO’s Message . .3

KBA Services and Benefits

ABIP . . . . . . . . . . . . . . . . . . . .4

Lobbying . . . . . . . . . . . . . . . .4

Fedefral Proceedings . . . . . .4

TDGA . . . . . . . . . . . . . . . . . .6

Legal Hotline . . . . . . . . . . . .6

Scoholarships . . . . . . . . . . . .6

KBA Comes To You . . . . . .7

KBA Seminars, Training and Events . . . . . . . . . . . . . .8

KBA Annual Conference Award Winners . . . . . . . . 10

PEP . . . . . . . . . . . . . . . . . . . 11

Financial Report . . . . . . . . . 12

KBA Past Chairmen . . . . . 15

KBA 2009 Accomplishments

2009 ANNUAL REPORT 3

message from Chairman Tom Ulmer

board of directors

ChairmanTom Ulmer, MainLine Broadcasting Louisville

Chairman-ElectEd Groves, Max Media, Bowling Green

Past-ChairmanTim Gilbert, WLEX-TV, Lexington

Radio District DirectorsJim Freeland, WCBL AM/FM, BentonBob Kelley, WFMW/WKTG, MadisonvilleMike Tarter, Forcht Radio, SomersetJim MacFarlane, L M Communications, LexingtonKelly Wallingford Wallingford Broadcasting, IrvinePaul Lyons, WQXX-FM WMOR-AM MoreheadKeith Casebolt, East Kentucky Broadcasting, PikevilleChuck Miller, WNKU-FM Highland HeightsJeff Ray, Gateway Radio, OwingsvilleBrian McFarland Forever Communications, Frankfort

Television DirectorsBill Lamb, WDRB-TV WMYO-TV, LouisvilleChris Fedele, WLEX-TV, LexingtonRick McCue, WBKO-TV, Bowling GreenJulie Schmidt, KET The Kentucky Network

Associate DirectorEd Henson, Henson Media, Louisville

Legal CounselDawn Sciarrino, Sciarrino & Shubert Centreville, WV

President/CEOGary R . White, Kentucky Broadcasters Association, Frankfort

Executive AssistantPatti L . Pullen, Kentucky Broadcasters Association, Frankfort

WelcometotheKentuckyBroadcastersAssociation’s“AnnualReport”.ThepurposeofanAnnualReportistoinformboardmem-bers,shareholders(KBAmembers),employeesandassociatesoffinancialperformanceachievements,shortfallsandprojections.Thesedocumentscontributetosoundinvestmentandmarketingdecisions.Iliketothinkofthisreportasasnap-shotoftheKBAin2009andagreatresourceforansweringthequestion,“Whathasthe

KBAbeendoingforme?” Onthepagesinthisreportyouwillfindhighlightsofmostoftheser-vicesandbenefitstheKBAprovides.FromlobbyinginWashington,D.C.andFrankfort,tofreelegaladviceandawardingscholarships,tosalessemi-narsandstationinspectionstheKBAtrulyofferssomethingforeveryone. PleasetakeafewminutestoreviewthisreportandjoinmeinreflectingonanothergreatyearfortheKBA.

message from President/CEO Gary R. White

4 KENTUCKY BROADCASTERS ASSOCIATION

KBA services and benefits2009 LOBBYING

ABIP In2009therewere45stationsthathaveundergoneABIPinspections,orhavesignedupandareawaitinginspection.ThisbringsKentuckytoapproximately103radioand20TVstations,witha“ComplianceCertificate”,enjoyingthepeaceofmindthattheymustberemovedfromtheFCC’sroutineinspectionlist,forthenextthreeyears.WhenastationpassestheABIPinspection,theKBAinformstheFCCenforcementoffice,bycertifiedletter,thatthisstationhasbeendeterminedtobeincompliance.TheFCCthenplacesthiscertificationinthestations’file. WiththecurrentcontentioninCongressoverhealthinsurance,let’slookattheABIPasinsurance.ThecostforanAM&FMcombotosecureimmunityfromrandomFCCinspectionisonedol-larandtwelvecents($1.12)perweek,perstation.Itseemscosteffective…consider-ingthethousandsortensofthousandsofdollarsinforfeiturestheFCCcouldpoten-tiallyimpose.TheABIPinspectorcanalsohelpinoptimizingtechnical/EASopera-tions,clarifyingrequirementsandreducingextraneousclutterinthepublicfile,etc.Over90%ofstations,havinghadanABIPinspection,havechosentobere-inspectedeverythreeyears. FCCinspectionimmunitybeginswhenastationsignsup.ABIP Works!(ContacttheKBAofficeformoreinformation.)GregHappel,DirectorKBAAlternativeBroadcastInspectionProgram

2009 ANNUAL REPORT 5

FEDERAL PROCEEDINGS TheFCCandCongresshavethrownattheradioandtelevisionbroadcastindustriesmultiple,concurrentpro-ceedingsproposingnumerous,re-regulatoryrequirements.TherefollowsalistingoftheFCCproceedingsinwhichtheKentuckyBroadcastersAssociationhavejointlyparticipatedin2009.ThislistingalsoidentifiesdocumentspreparedfortheKBAinconnectionwiththeproposedPerformanceTaxissuependingbeforeCongress.

2009 1.IntheMatterofImplementationofShort-termAnalogFlashandEmergencyReadinessAct;EstablishmentofDTVTransition“AnalogNightlight”Program(MBDocketNo.08-255),JointCommentsfiledJanuary 5,2009,remindingtheFCCoftheStateBroadcastersAssociations’workinhelpingtoreadymembersofthepublicfortheFebruary17,2009DTVtransitiondeadline 2.“ResolutionoftheFiftyStateBroadcastersAssociations,IncludingtheDistrictofColumbiaandtheCommonwealthofPuertoRico,InOppositiontoanew“’PerformanceTax,’”datedFebruary4,2009.(Legislationpending) 3.InretheDigitalTelevisionTransition,CommissionOpenMeeting,February5,2009,“WrittenStatementofDennisLyle”onbehalfoftheNationalAllianceofStateBroadcastersAssociationsextollingthe“partnership”rela-tionshipbetweentheStateBroadcastersAssociationsandtheFCCwhichbeganwiththeABIPProgramandhascontinuedinconnectionwiththeeffortsoftheStateAssociationsinconnectionwiththeDTVtransition. 4.“ProposedNewPerformanceFee,Levy,TaxonLocalRadioStations,”datedMarch9,9009(4pages),identifyingthekeyissue,thepartiessupportingandopposingaperfor-mancetaxandthelegislativepostureoftheissue. 5.“WhitePaperonProposedFirstEver,‘PerformanceTax’ontheFree,Over-the-air,LocalBroadcastofSoundRecordings,”datedMarch18,2009(9pages),settingforthindetailtheargumentspro,conandrebuttals,onthe“betthefarmperformancetaxissue. 6.InretheMatterofAssessmentandCollectionofRegulatoryFeesforFiscalYear2009,etal.,(MDDocket

Nos.09-45and08-65),JointCommentsfiledonJune4,2009,urgingtheCommission,forthereasonsstatedtherein,toreduceitsannualregulatoryfeesand/orapplicationpro-cessingfeesbothretroactivelyandprospective,aswellasgrantfeepaymentwaiverswithastationhavingtoshowthatitis“in”foreclosureor“in”bankruptcywhereastationshows(i)thatitsrevenuesaredownsubstantiallyandemployeelayoffsandfurloughshavebeenimplemented;(ii)thestation’sloancovenantshavebeenbrokenorthestationisotherwiseindefaultunderitsfinancing;or(iii)thestationisonthebrinkofforeclosureorbankruptcy.TheFCCdeclinedtoadoptourefforttorelaxthewaivershowingrequirement. 7.IntheMatterofPublicInformationCollectionRequirementSubmittedtoOMBforReviewandApproval,CommentsRequests(OMBControlNumber:3060-0010,CommentsfiledonSeptember10,2009,onbehalfof47StateBroadcastersAssociationsinoppositiontoOMBapprovalofrevisedFCCForm323,theOwnershipReportformforcommercialradioandtelevisionstations.OMBapprovedtheformforFCCuse. 8.IntheMatterofMusicFIRSTCoalitionPetitionRegardingtheActionsofCertainRadioBroadcastersinOppositiontothePerformanceRightsAct. 9.InreNoticeofApparentLiabilityforForfeitureCalvaryChapelofCostaMesa,Inc.,KWVE(FM),SanClemente,CA,JointLetterfiledOctober14,2009onbehalfofallStateBroadcastersAssociationsinoppositiontothefor-feitureforinadvertentEAS-relatedviolationsbyLP-1station.TheFCCadoptedourposition,rescindingtheforfeitureandonlyadmonishedthestation. 10.IntheMatterofInternationalComparisonandConsumerSurveyRequirementsintheBroadbandDataImprovementAct,etal.(GNDocketNos.09-47,51and137),ReplyCommentsfiledonNovember13,2009onbehalfof45StateBroadcastersAssociationsinoppositiontothereallocationoftelevisionbroadcastspectrumtothebroad-bandindustry.AllofthiswellillustrateshowhardtheKBAisfightingforradioandtelevisionstationsbeforetheFCCandCongress.

6 KENTUCKY BROADCASTERS ASSOCIATION

Thisyear(2009),KBAawardedfourmorenewHarryBarfieldScholarshipAwardstocollegestu-dentsacrosstheCommonwealth,valuedat$2,500eachfortheacademicyear(2009-10),andrenewedthescholarshipsofthreestudentswhohadreceivedthescholarshipduringthepreviousacademicyear(2008-09).Inthe18yearssincetheprogram’sinception,KBAhasawardedover$100,000inscholarshipstocollegestudentsinKentuckywhohavedemonstratedstrongacademicsandasinceredesiretopursueacareerinbroadcastingand/orcommunications.

SCHOLARSHIPS

more KBA services and benefits

TDGA

TheKentuckyBroadcastersAssociationhasunderwrit-tenmembershipsintheTrafficDirectorsGuildofAmericaforthesixthyear.Onehundredtwenty-three(123)KBAMemberTraffic,Continuity,BusinessManagers,OfficeManagersandGM’shavetakenadvantageofthisFREEofferfromtheKBA.TheTDGAisaprofessionalassociationofhighlyskilledpersonsworkingintheradioandtelevisionbroadcastingindustry.Ifyouwouldlikeacomplimen-tarymembershipintheTDGAcontacttheKBAoffice.

LEGAL HOTLINE

For the 5th straight year, political broad-casting questions topped the list of most frequent calls to the KBA Legal Hotline .

In2009DawnSciarrino,ourKBAlegalcounsel,handledhoursworthofcallsonallsortsofFCCrelat-edtopicsfromthetypicaltothecomplex.Inadditiontoherfavoritetopic,politicalbroadcasting,theques-tionsansweredforKBAmembersincludedinforma-tionaboutthenewbiennialownershipreports,AMuseofFMtranslators,EEO,recordedtelephonecalls,crossownership,tobaccoadvertising,HDRadio,EASandclosedcaptioning,justtonameafew.ManycallswerealsotakenbyDawn’spartner,LeeShubert,uti-lizinghisuniquequalificationsintheareasofcontests,lotteries,promotionsandsweepstakes. InherroleascounseltotheKBAandmemberoftheBoardofDirectors,DawnalsohasworkedonanumberofimportantprojectsfortheKBAincludingtheKBAannualconferenceplanningandperson-nelcommittees,theKentuckyAllianceforRadioandTelevisionandadvocacyworkonCapitalHillonbehalfoftheKBA.DawnalsoactedasliaisonforKBAwithNABonthemyriadofissuesfacingbroad-castersontheHillandattheFCCincludingtheper-formancetax,retransmissionconsentandownershipreportingrequirements. ThehotlineisavailablefreetoKBAmembersta-tionsforlegaladviceongeneralFCCrelatedtopics.DawnM.SciarrinoSciarrino&Shubert,PLLC5425TreeLineDr.,Centreville,VA20120703.830.1679(phone)703.991.7120(fax)202.256.9551(cell)dawn@sciarrinolaw.com

2009 ANNUAL REPORT 7

more KBA services and benefitsTHE KBA COMES TO YOU

During2009GaryWhiteKBApresident/CEOtrav-eledthestatevisitingalmost100radioandtelevi-sionstations.“Gettingoutandgoingintostudiosandofficesgivesmeanopportunitytoseewhat’sgoingonintherealworld.”Whitesaid.Headded,“Talkingtoowners,managers,trafficdirectorsandjocksisthebestwaytolearnhowtheKBAcanbet-terservethemembership.”Whitesaysthevisitsallowhimtohear,see,andfeeltheissuesandcon-cernsaffectingbroadcasters.“Naturally,theecon-omyhasbeenthemaintopicofdiscussionthispastyear.”Whitepointedout.Hesaidsomestationsreportedadropinbusinessbut,manyotherswereseeingareboundtowardtheendoftheyear.Whiteisplanningmorestationvisitsin2010.

James Combs, WBFC-AM, Stanton and Gary White

Gary White and René Bell, WASE/WLVK, Elizabethtown

Jack Hanes, WKU Public Radio and Gary White

Jamie Johnson, WFKN, Franklin

Vickie Newberry, Commonwealth Broadcasting and Gary White

8 KENTUCKY BROADCASTERS ASSOCIATION

KBA 2009 seminars training events

Annual Conference ~ October – Bowling GreenPicturedbelowleftinorder:

JohnPotter,RABPaulWeylandMelTaylor,RABDr.GaryA.Ransdell,PresidentWKU,KeynoteSpeaker

Picturedbelow:AnnBobeck,NABJohnDavid,NABDawnSciarrino,Sciarrino&AssociatesMarshaMacBride,Sciarrino&Associates

JimDoyleSatelliteSeminarGetting Your Dealer $$ Back-November

2009 Annual Conference

Joe Bonura – Road Trip ~ May, June & July Prestonsburg – Frankfort – Madisonville – Bowling GreenOver 300 Account Executives participated.

2009 ANNUAL REPORT 9

2009 Annual Conference

AnnualConferenceSession

JoeBonuraseminarinFrankfort

10 KENTUCKY BROADCASTERS ASSOCIATION

2009 Annual Conference

Award Winners

Outgoing KBA Board members Chris Fedele, Jim Freeland, Ed Henson and Paul Lyons were recognized

for their service to the KBA.

The KBA held its annual awards dinner on Wednesday, October 7th during the conference in Bowling Green.

Ralph Gabbard Distinguished Kentuckian, Steve Newberry

Kentucky Mike Award,Mike Feldhaus (right)presented by Bill Evans

Kentucky Mike Award,Hays McMakin (right)

presented by Francis Nash

Kentucky Mike Award, Gary Roedemeier (right)presented by Ed Henson

2009 ANNUAL REPORT 11

PEP $6

63

,00

0What is PEP? The lifeblood of the KBA is the PublicEducationPartnershipProgram(PEP). PEP generates almost 85% of the KBA’sannual operating budget. The program allowsgovernment agencies and non-profit organi-zations to secure statewide airtime for publicawarenesscampaignsthatdonothavesufficientfundingforapaidschedule. TheKBAPEPprogramcoordinatorisPattiL.Pullen.IfyouhaveanyquestionspleasecontactherattheKBAoffice.

How does PEP work? •AlimitednumberofPEPsponsors (7maximum)canparticipateinthe programunderstrictrulesestablished bytheKBA

•Forafee,KBAdistributesradioand televisionmessagesto275Kentucky stations.

•Kentuckystationsareaskedtodonate airtimetothecampaigns,document thetimeandsendaffidavitstotheKBA.

•KBAcompilesreportsontheairtimeand valueforthesponsor.

•ThePEPprogramguaranteesaROIof 5to1forthesponsor…buttheROIis oftencloserto10to1.

How does KBA Invest the Revenue? ThisyearthePEPprogramgenerated$663,000inrevenuethatwasre-investedinKentuckystationsintheformofmemberser-vicesandbenefits.SomeoftheservicesaretheLegalHotline,e-CAST(anonlinenewslet-ter),TheKentuckyBroadcaster(aquarterlypublication),jobbank,salesandmanagementtrainingseminars,politicaladvertisingseminars,theAlternativeBroadcastInspectionProgram(ABIP),satelliteseminarsandmanymore.TheseeventsareofferedatareducedrateorareFREE! ThankstoKBAstationsfortheirgener-oussupportofthecurrentPEPsponsors:TheKentuckyArmyNationalGuard,theKentuckyCircuitCourtClerksAssociation-TrustforLife,KentuckyColonels,KentuckyPublicServiceCommission,KY811,theKentuckyTransportationCabinet,CouncilonPostsecondaryEducationandtheKentuckyDepartmentofTourism.

12 KENTUCKY BROADCASTERS ASSOCIATION

financial reportOnbehalfofthestaffoftheKentuckyBroadcastersAssociationanditsBoardofDirectors,

IampleasedtoreportthatonNovember30,2009,KentuckyBroadcastersAssociation,

Inc.completedanothersuccessfulfinancialyeardespitegrossreceiptsbeingdownby5%

comparedtolastyear.Expensesweredownslightlyfromprioryearaswellallowingfora

continuedstrongbottomline,therebyincreasingournetassetreserveby11.7%.Withno

outstandingdebtasofNovember30,2009allowsuswithagreaterabilitytocontinueto

growtheprogramsandserviceswhichwillbenefitourmembershipintheupcomingyears.

Asdetailedontheadjoiningpiechartyoucanseewherejustover35%ofallexpenditures

werespentdirectlyonmembers’benefitprograms.

Theboardrecognizeditsfiduciarydutytoprotectandmaintainthefinancialstrengthand

integrityoftheAssociation.Aspartoftheprocessittakesacloseandcontinuousmanage-

mentapproachinoverseeingthefinancialaspectsoftheAssociationincludingbudgetingof

fundsandmanagementofprogram,operatingandcapitalspending.Goodstewardshipof

theAssociation’sfundingisahighpriorityforyourboard.

TheBoardbelievestheAssociationanditsmembersshouldbeproudofitsaccomplish-

mentsandfeelsthatitscurrentfinancialsituationputsitinapositiontoachieveevenmore

forthebroadcastingindustry,andmostparticularlyitsmembership.Throughthecombined

effortsoftheDirectorsandadedicatedstaffitsmembershipcanrestassuredtheassetsofthe

Associationwillbemanagedinamannertoachievemaximumbenefitforitsmembership.

LetmetakethisopportunitytoexpresstheBoardandstaff’sgratefulappreciationforthe

memberships’continuedloyaltyandencourageeachandeverymembertotakeanactive

roleinourconventionsandmembershipfunctions.

2009 ANNUAL REPORT 13

financial information and pie charts

Interest & Dividend Income 1.27%Commissions 0.52%

Membership & Association Dues 1.87%Conventions, Conferences & Seminars 0.09%

Rental Income 8.83%

Other 1.18%

INCOME

PEP Advertising 86.24%

Member Benefits& Services 35.44%

Depreciation 5.18%

Benefits & Payroll Taxes 8.51%

Accounting & Legal 3.89%

Operating Expenses 18.17%

Salaries & Wages 28.29%

EXPENSE

Interest Expense 0.52%

14 KENTUCKY BROADCASTERS ASSOCIATION

Kentucky Broadcasters Association Past Chairmen1946 Hugh O Potter Owensboro WOMI

1947 J E Willis Lexington WLAP

1948 Harry McTigue Louisville WINN

1949 F E Lackey Hopkinsville WHOP

1950 J Porter Smith Louisville WGRC

1951 Charles C Warren Ashland WCMI

1952 J W “Bill” Betts Maysville WFTM

1953 Joseph Eaton Louisville WKLO

1954 Mike Layman Somerset WSFC

1955 Sam Livingston Paducah WKYB

1956 Gilmore Nunn Lexington WLAP

1957 Arthur Eilerman Covington WZIP

1958 Walter “Dee” Huddleston Elizabethtown WIEL

1959 Alvis H Temple Bowling Green WKCT

1960 J Franke Fox Harlan WHLN

1961 Don Horton Lexington WVLk

1962 James M Caldwell Louisville WAVE

1963 William M Whittker Morehead WMOR

1964 C A “Bud” McClain Frankfort WFKY

1965 James H Topmiller Louisville WHAS

1966 W P Sosh Russellville WRUS

1967 J T Whitlock Lebanon WLBN

1968 Ray Holbrook Danville WHIR

1969 Arthur Grunewald Henderson WSON

1970 H Lee Browning Louisville WAVE-TV

1971 Walter E May Pikeville WPKE

1972 Robert Doll Frankfort WFKY

1973 Roy A Redmond Maysville WFTM

1974 Charles W Stratton Mayfield WNGO

1975 Ernest Sparkman Hazard WKIC

1976 Garland R West Bowling Green WKCT

1977 Jack Farmer Danville WHIR

1978 Fred Paxton Paducah WPSD-TV

1979 William Summers 3rd Louisville WLOU/WNUU

1980 Bill Walters Elizabethtown WIEL

1981 Henry G Lackey Henderson WSON

1982 J B Crawley Campbellsville WCND WLCK WMSK

1983 Harry Barfield Lexington WLEX-TV

1984 G Nolan Kenner Somerset WSFC WSEK

1985 Ralph E Hacker Lexington WVLK AM/FM

1986 Charles M Anderson Bowling Green Western Kentucky University

1987 Ralph W Gabbard Lexington WKYT-TV

1988 B Douglas Hamby Providence WHRZ

1989 Edward Henson Jr Louisville WAVG WLRS

1990 Bill Evans Elizabethtown WQXE

1991 James Allison III Lexington WLEX-TV

1992 Connie J Sabad Lexington WVLK AM/FM

1993 Robert “Bob” Scherer Louisville WHAS WAMZ

1994 Steven W Newberry Glasgow WHHT WKNK WXPC

1995 Leonard “Corky” Norcia Owensboro WBIO WKCM WLME

1996 Dan Dorsett Lexington WLAP AM/FM

1997 Christopher Baker Louisville WLRS

1998 Wayne Martin Lexington WKYT-TV

1999 J Barry Williams Bowling Green WBGL WBGN

2000 Francis Nash Grayson WGOH WUGO

2001 Ed Mastrean Lexington KET, The Kentucky Network

2002 Dale Thornhill Elizabethtown Commonwealth Broadcasting

2003 Mark Thomas Louisville Clear Channel Radio

2004 Mike Tarter Somerset Key Broadcasting

2005 Steve Langford Louisville WAVE-TV

2006 Randy Thompson Hindman WKCB

2007 Beth Mann Cadiz/Hopkinsville WKDZ AM/FM WHVO

2008 Tim Gilbert Lexington WLEX-TV

2009 ANNUAL REPORT 15

1-888•THE•KBA•1 (843-5221) 502-848-0426Fax: 502-848-5710

http://www.kba.orgemail: kba@mis.net

Kentucky Broadcasters Association101 Enterprise DriveFrankfort, KY 40601