Saga Communications, Inc. Reports 2nd Quarter 2007 Results
Saga Communications, Inc. Reports 2nd Quarter 2007 Results
GROSSE POINTE FARMS, Mich., Aug. 9 /PRNewswire-FirstCall/ -- Saga Communications, Inc. (NYSE:SGA) today reported that 2nd quarter 2007 net operating revenue increased 1.8% over the comparable period in 2006 to $38.4 million and operating income was approximately flat at $8.8 million. Net income decreased $178 thousand to $3.8 million ($.19 per fully diluted share) for the quarter ended June 30, 2007 compared to $4.0 million ($.19 per fully diluted share) for the comparable period in 2006. Free Cash Flow increased $878 thousand to $5.6 million. For the same period, station operating expense increased $647 thousand to $27.0 million (station operating expense includes depreciation and amortization attributable to the stations). On a same station basis for the quarter, net operating revenue increased 1.5% to $38.3 million, operating income was approximately flat at $8.8 million and station operating expense increased $486 thousand to $26.9 million.
For the six month period ended June 30, 2007, net operating revenue increased 2.0% over the comparable period in 2006 to $70.3 million, operating income decreased $1.0 million to $12.4 million and net income decreased $963 thousand to $4.6 million ($.23 per fully diluted share) compared to $5.5 million ($.27 per fully diluted share) for the comparable period in 2006. Free Cash Flow decreased $135 thousand. For the same period, station operating expense increased $1.9 million to approximately $53.0 million (station operating expense includes depreciation and amortization attributable to the stations). On a same station basis for the six months, net operating revenue increased 1.7% to $70.1 million, operating income decreased $942 thousand to $12.4 million and station operating expense increased $1.7 million to $52.8 million.
Capital expenditures in the second quarter of 2007 were $2.2 million of which $420 thousand were as a result of acquisitions and $360 thousand were related to digital radio. For the six months capital expenditures were $4.6 million of which $1.3 million were as a result of acquisitions and $520 thousand were related to digital radio. Currently we expect capital expenditures for the year to be approximately $10.5 million.
The attached Selected Supplemental Financial Data table discloses "as reported," "same station" and "pro forma" information by segment. The "as reported" amounts reflect our historical financial results and include the results of operations for stations that we did not own for the entire comparable period. The "same station" amounts reflect only the results of operations for stations that we owned for the entire comparable period. The "pro forma" amounts assume the 2007 and 2006 acquisitions and dispositions occurred as of January 1, 2006.
Saga Communications utilizes certain financial measures that are not calculated in accordance with generally accepted accounting principles (GAAP) to assess its financial performance. Such non-GAAP measures include same station financial information and free cash flow. These non-GAAP measures are generally recognized by the broadcasting industry as measures of performance and are used by Saga to assess its financial performance including but not limited to evaluating individual station and market-level performance, evaluating overall operations and as a primary measure for incentive based compensation of executives and other members of management. Saga's management believes these non-GAAP measures are used by analysts who report on the industry and by investors to provide meaningful comparisons between broadcasting groups, as well as an indicator of their market value. These measures are not measures of liquidity or of performance in accordance with GAAP, and should be viewed as a supplement to and not as a substitute for the results of operations presented on a GAAP basis including net operating revenue, operating income, and net income. Reconciliations for all of the non- GAAP financial measures to the most directly comparable GAAP measure are attached in the Selected Financial Data Non-GAAP Disclosures tables.
Saga Communications, Inc. is a broadcasting company whose business is devoted to acquiring, developing and operating broadcast properties. The Company owns or operates broadcast properties in 26 markets, including 59 FM and 30 AM radio stations, 3 state radio networks, 2 farm radio networks, 5 television stations and 4 low-power television stations. As previously disclosed, the Company has entered into agreements to acquire an FM station serving the Asheville, NC radio market and an AM station and a FM station serving the Courtland, NY radio market. The Company also expects to enter into an agreement to acquire an FM radio station serving the Portland, ME radio market. The closing of these transactions are subject to receiving FCC approvals. For additional information, contact us at (313) 886-7070 or visit our website at www.sagacommunications.com.
Saga's second quarter 2007 results conference call will be on Thursday, August 9 at 2:00 PM EDT. The dial in number for domestic calls is 800/230-1059. For international callers the number is 612/332-0923. The call can be replayed for 7 days by calling domestically 800/475-6701 or internationally 320/365-3844 and referring to access code 881704. Thereafter, a transcript of the call will be available on our website.
This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words such as "believes," "expects," "anticipates," "guidance" and similar expressions are intended to identify forward-looking statements. Key risks, including risks associated with Saga's ability to effectively integrate the stations it acquires and the impact of federal regulation on Saga's business, are described in the reports Saga Communications, Inc. periodically files with the U.S. Securities and Exchange Commission. Readers should note that these statements may be impacted by several factors, including national and local economic changes and changes in the radio and television broadcast industry in general, as well as Saga's actual performance. Results may vary from those stated herein and Saga undertakes no obligation to update the information contained here.
Saga Communications, Inc. Selected Consolidated Financial Data For The Three and Six Months Ended June 30, 2007 and 2006 (amounts in 000's except per share data) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2007 2006 2007 2006 Operating Results Net operating revenue $38,421 $37,745 $70,304 $68,936 Station operating expense 27,016 26,369 53,011 51,072 Corporate general and administrative 2,606 2,499 4,922 4,480 Operating income 8,799 8,877 12,371 13,384 Interest expense 2,281 2,355 4,578 4,632 Other expense (income), net 47 (215) 82 (570) Income before income tax 6,471 6,737 7,711 9,322 Income tax expense 2,661 2,749 3,161 3,809 Net income $3,810 $3,988 $4,550 $5,513 Earnings per share Basic $0.19 $0.19 $0.23 $0.27 Diluted $0.19 $0.19 $0.23 $0.27 Weighted average common shares 20,083 20,575 20,066 20,528 Weighted average common shares and common shares equivalents 20,113 20,593 20,101 20,547 Free Cash Flow Net income $3,810 $3,988 $4,550 $5,513 Plus: Depreciation and amortization: Station 1,939 1,950 3,834 3,881 Corporate 51 48 98 96 Deferred tax provision 1,557 1,311 1,827 1,771 Non-cash compensation 329 369 615 599 Other expense (income), net 47 (215) 82 (570) Less: Capital expenditures (2,149) (2,745) (4,563) (4,712) Free cash flow $5,584 $4,706 $6,443 $6,578 Balance Sheet Data Working capital $20,886 $21,755 Net fixed assets 74,308 70,337 Net intangible assets and other assets 213,427 208,203 Total assets 325,668 316,783 Long term debt (including current portion of $0 and $0, respectively) 129,911 136,911 Stockholders' equity 141,761 131,210 Saga Communications, Inc. Selected Supplemental Financial Data For the Three Months Ended June 30, 2007 and 2006 (amounts in 000's except per share data) (Unaudited) As-Reported Same Station Pro Forma (1) Three Months Three Months Three Months Ended Ended Ended June 30, June 30, June 30, 2007 2006 2007 2006 2007 2006 Consolidated Net operating revenue $38,421 $37,745 $38,300 $37,745 $38,421 $37,745 Station operating expense 27,016 26,369 26,855 26,369 27,016 26,369 Corporate general and administrative 2,606 2,499 2,606 2,499 2,606 2,499 Operating income 8,799 8,877 $8,839 $8,877 8,799 8,877 Interest expense 2,281 2,355 2,281 2,355 Other expense (income), net 47 (215) 47 (215) Income tax expense 2,661 2,749 2,661 2,749 Net income $3,810 $3,988 $3,810 $3,988 Earnings per share: Basic $0.19 $0.19 $0.19 $0.19 Diluted $0.19 $0.19 $0.19 $0.19 As-Reported Same Station Pro Forma (1) Three Months Three Months Three Months Ended Ended Ended June 30, June 30, June 30, 2007 2006 2007 2006 2007 2006 Radio Segment Net operating revenue $33,843 $33,418 $33,722 $33,418 $33,843 $33,418 Station operating expense 23,455 22,960 23,294 22,960 23,455 22,960 Operating income $10,388 $10,458 $10,428 $10,458 $10,388 $10,458 As-Reported Same Station Pro Forma (1) Three Months Three Months Three Months Ended Ended Ended June 30, June 30, June 30, 2007 2006 2007 2006 2007 2006 Television Segment Net operating revenue $4,578 $4,327 $4,578 $4,327 $4,578 $4,327 Station operating expense 3,561 3,409 3,561 3,409 3,561 3,409 Operating income $1,017 $918 $1,017 $918 $1,017 $918 As-Reported Same Station Pro Forma (1) Three Months Three Months Three Months Ended Ended Ended June 30, June 30, June 30, 2007 2006 2007 2006 2007 2006 Depreciation and amortization by segment Radio Segment $1,539 $1,536 $1,506 $1,536 $1,539 $1,536 Television Segment 400 414 400 414 400 414 Corporate and Other 51 48 51 48 51 48 $1,990 $1,998 $1,957 $1,998 $1,990 $1,998 (1) Pro Forma results assume all acquisitions and dispositions in 2006 and 2007 occurred as of January 1, 2006. Saga Communications, Inc. Selected Supplemental Financial Data For the Six Months Ended June 30, 2007 and 2006 (amounts in 000's except per share data) (Unaudited) As-Reported Same Station Pro Forma (1) Six Months Six Months Six Months Ended Ended Ended June 30, June 30, June 30, 2007 2006 2007 2006 2007 2006 Consolidated Net operating revenue $70,304 $68,936 $70,114 $68,936 $70,304 $68,936 Station operating expense 53,011 51,072 52,750 51,072 53,011 51,072 Corporate general and administrative 4,922 4,480 4,922 4,480 4,922 4,480 Operating income 12,371 13,384 $12,442 $13,384 12,371 13,384 Interest expense 4,578 4,632 4,578 4,632 Other expense (income), net 82 (570) 82 (570) Income tax expense 3,161 3,809 3,161 3,809 Net income $4,550 $5,513 $4,550 $5,513 Earnings per share: Basic $0.23 $0.27 $0.23 $0.27 Diluted $0.23 $0.27 $0.23 $0.27 As-Reported Same Station Pro Forma (1) Six Months Six Months Six Months Ended Ended Ended June 30, June 30, June 30, 2007 2006 2007 2006 2007 2006 Radio Segment Net operating revenue $61,736 $60,698 $61,546 $60,698 $61,736 $60,698 Station operating expense 45,968 44,375 45,707 44,375 45,968 44,375 Operating income $15,768 $16,323 $15,839 $16,323 $15,768 $16,323 As-Reported Same Station Pro Forma (1) Six Months Six Months Six Months Ended Ended Ended June 30, June 30, June 30, 2007 2006 2007 2006 2007 2006 Television Segment Net operating revenue $8,568 $8,238 $8,568 $8,238 $8,568 $8,238 Station operating expense 7,043 6,697 7,043 6,697 7,043 6,697 Operating income $1,525 $1,541 $1,525 $1,541 $1,525 $1,541 As-Reported Same Station Pro Forma (1) Six Months Six Months Six Months Ended Ended Ended June 30, June 30, June 30, 2007 2006 2007 2006 2007 2006 Depreciation and amortization by segment Radio Segment $3,045 $3,075 $2,980 $3,075 $3,045 $3,075 Television Segment 789 806 789 806 789 806 Corporate and Other 98 96 98 96 98 96 $3,932 $3,977 $3,867 $3,977 $3,932 $3,977 (1) Pro Forma results assume all acquisitions and dispositions in 2006 and 2007 occurred as of January 1, 2006. Saga Communications, Inc. Selected Supplemental Financial Data Quarterly Pro Forma Information June 30, 2007 and 2006 (amounts in 000's except per share data) (Unaudited) Pro Pro Forma (1) Forma (1) Pro Forma (1) Pro Forma (1) Three Three Three Months Three Months Months Months Ended Ended Ended Ended March 31, June 30, Sept. 30, Dec. 31, 2007 2006 2007 2006 2006 2006 Consolidated Net operating revenue $31,883 $31,191 $38,421 $37,745 $35,791 $38,219 Station operating expense 25,995 24,703 27,016 26,369 25,761 27,563 Corporate general and administrative 2,316 1,981 2,606 2,499 2,225 2,165 Other operating income - - - - - (312) Operating income 3,572 4,507 8,799 8,877 7,805 8,803 Interest expense 2,297 2,277 2,281 2,355 2,375 2,372 Other expense (income), net 35 (355) 47 (215) (75) 145 Income tax expense 500 1,060 2,661 2,749 2,241 2,615 Net income $740 $1,525 $3,810 $3,988 $3,264 $3,671 Earnings per share: Basic $0.04 $0.07 $0.19 $0.19 $0.16 $0.18 Diluted $0.04 $0.07 $0.19 $0.19 $0.16 $0.18 Pro Pro Forma (1) Forma (1) Pro Forma (1) Pro Forma (1) Three Three Three Months Three Months Months Months Ended Ended Ended Ended March 31, June 30, Sept. 30, Dec. 31 2007 2006 2007 2006 2006 2006 Radio Segment Net operating revenue $27,893 $27,280 $33,843 $33,418 $31,402 $33,174 Station operating expense 22,513 21,415 23,455 22,960 22,300 23,952 Other operating income - - - - - (312) Operating income $5,380 $5,865 $10,388 $10,458 $9,102 $9,534 Pro Pro Forma (1) Forma (1) Pro Forma (1) Pro Forma (1) Three Three Three Months Three Months Months Months Ended Ended Ended Ended March 31, June 30, Sept. 30, Dec. 31, 2007 2006 2007 2006 2006 2006 Television Segment Net operating revenue $3,990 $3,911 $4,578 $4,327 $4,389 $5,045 Station operating expense 3,482 3,288 3,561 3,409 3,461 3,611 Operating income $508 $623 $1,017 $918 $928 $1,434 Pro Pro Forma (1) Forma (1) Pro Forma (1) Pro Forma (1) Three Three Three Months Three Months Months Months Ended Ended Ended Ended March 31, June 30, Sept. 30, Dec. 31, 2007 2006 2007 2006 2006 2006 Depreciation and amortization by segment Radio Segment $1,506 $1,539 $1,539 $1,536 $1,494 $1,719 Television Segment 389 392 400 414 409 458 Corporate and Other 47 48 51 48 48 50 $1,942 $1,979 $1,990 $1,998 $1,951 $2,227 (1) Pro Forma results assume all acquisitions and dispositions in 2006 and 2007 occurred as of January 1, 2006. Saga Communications, Inc. Selected Financial Data Non-GAAP Disclosures For the Three Months Ended June 30, 2007 and 2006 (amounts in 000's) (Unaudited) Reconciliation of As-Reported (historical) information to Same Station Operating Income Adjustment As-Reported For Acquisitions Same Station Three Months Dispositions Three Months Ended Not Included in Ended June 30, Entire Comparable June 30, 2007 Period 2007 Consolidated Net operating revenue $38,421 ($121) $38,300 Station operating expense 27,016 (161) 26,855 Corporate general and administrative 2,606 - 2,606 Operating income $8,799 $40 $8,839 Adjustment As-Reported For Acquisitions Same Station Three Months Dispositions Three Months Ended Not Included in Ended June 30, Entire Comparable June 30, 2006 Period 2006 Consolidated Net operating revenue $37,745 - $37,745 Station operating expense 26,369 - 26,369 Corporate general and administrative 2,499 - 2,499 Operating income $8,877 - $8,877 Adjustment As-Reported For Acquisitions Same Station Three Months Dispositions Three Months Ended Not Included in Ended June 30, Entire Comparable June 30, 2007 Period 2007 Radio Segment Net operating revenue $33,843 ($121) $33,722 Station operating expense 23,455 (161) 23,294 Operating income $10,388 $40 $10,428 Adjustment As-Reported For Acquisitions Same Station Three Months Dispositions Three Months Ended Not Included in Ended June 30, Entire Comparable June 30, 2006 Period 2006 Radio Segment Net operating revenue $33,418 - $33,418 Station operating expense 22,960 - 22,960 Operating income $10,458 - $10,458 Adjustment As-Reported For Acquisitions Same Station Three Months Dispositions Three Months Ended Not Included in Ended June 30, Entire Comparable June 30, 2007 Period 2007 Television Segment Net operating revenue $4,578 - $4,578 Station operating expense 3,561 - 3,561 Operating income $1,017 - $1,017 Adjustment As-Reported For Acquisitions Same Station Three Months Dispositions Three Months Ended Not Included in Ended June 30, Entire Comparable June 30, 2006 Period 2006 Television Segment Net operating revenue $4,327 - $4,327 Station operating expense 3,409 - 3,409 Operating income $918 - $918 Saga Communications, Inc. Selected Financial Data Non-GAAP Disclosures For the Six Months Ended June 30, 2007 and 2006 (amounts in 000's) (Unaudited) Reconciliation of As-Reported (historical) information to Same Station Operating Income Adjustment As-Reported For Acquisitions Same Station Six Months Dispositions Six Months Ended Not Included in Ended June 30, Entire Comparable June 30, 2007 Period 2007 Consolidated Net operating revenue $70,304 ($190) $70,114 Station operating expense 53,011 (261) 52,750 Corporate general and administrative 4,922 - 4,922 Operating income $12,371 $71 $12,442 Adjustment As-Reported For Acquisitions Same Station Six Months Dispositions Six Months Ended Not Included in Ended June 30, Entire Comparable June 30, 2006 Period 2006 Consolidated Net operating revenue $68,936 - $68,936 Station operating expense 51,072 - 51,072 Corporate general and administrative 4,480 - 4,480 Operating income $13,384 - $13,384 Adjustment As-Reported For Acquisitions Same Station Six Months Dispositions Six Months Ended Not Included in Ended June 30, Entire Comparable June 30, 2007 Period 2007 Radio Segment Net operating revenue $61,736 ($190) $61,546 Station operating expense 45,968 (261) 45,707 Operating income $15,768 $71 $15,839 Adjustment As-Reported For Acquisitions Same Station Six Months Dispositions Six Months Ended Not Included in Ended June 30, Entire Comparable June 30, 2006 Period 2006 Radio Segment Net operating revenue $60,698 - $60,698 Station operating expense 44,375 - 44,375 Operating income $16,323 - $16,323 Adjustment As-Reported For Acquisitions Same Station Six Months Dispositions Six Months Ended Not Included in Ended June 30, Entire Comparable June 30, 2007 Period 2007 Television Segment Net operating revenue $8,568 - $8,568 Station operating expense 7,043 - 7,043 Operating income $1,525 - $1,525 Adjustment As-Reported For Acquisitions Same Station Six Months Dispositions Six Months Ended Not Included in Ended June 30, Entire Comparable June 30, 2006 Period 2006 Television Segment Net operating revenue $8,238 - $8,238 Station operating expense 6,697 - 6,697 Operating income $1,541 - $1,541
First Call Analyst:
FCMN Contact: aparks@sagacom.com
Source: Saga Communications, Inc.
CONTACT: Samuel D. Bush of Saga Communications, Inc., +1-313-886-7070
Web site: http://www.sagacommunications.com/
Profile: International Entertainment
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