Saga Communications, Inc. Reports 3rd Quarter 2007 Results
Saga Communications, Inc. Reports 3rd Quarter 2007 Results
GROSSE POINTE FARMS, Mich., Nov. 5 /PRNewswire-FirstCall/ -- Saga Communications, Inc. (NYSE:SGA) today reported that 3rd quarter 2007 net operating revenue increased 1.2% over the comparable period in 2006 to $36.2 million and operating income increased 2.1% to $8.0 million. Free Cash Flow increased $795 thousand to $5.5 million. Net income was approximately flat at $3.3 million ($.17 per fully diluted share) for the quarter ended September 30, 2007 compared to $3.3 million ($.16 per fully diluted share) for the comparable period in 2006. For the same period, station operating expense increased $214 thousand to $26.0 million (station operating expense includes depreciation and amortization attributable to the stations). On a same station basis for the quarter, net operating revenue was approximately flat at $35.9 million and operating income was approximately flat at $7.9 million.
For the nine month period ended September 30, 2007, net operating revenue increased 1.7% over the comparable period in 2006 to $106.5 million and operating income decreased $847 thousand to $20.3 million. Free Cash Flow increased $660 thousand to $12.0 million. Net income decreased $906 thousand to $7.9 million ($.39 per fully diluted share) compared to $8.8 million ($.43 per fully diluted share) for the comparable period in 2006. For the same period, station operating expense increased 2.8% to approximately $79.0 million (station operating expense includes depreciation and amortization attributable to the stations). On a same station basis for the nine months, net operating revenue increased 1.3% to $106.0 million, operating income decreased $971 thousand to $20.3 million and station operating expense increased 2.3% to $78.5 million.
Capital expenditures in the third quarter of 2007 were $1.6 million of which $357 thousand were as a result of acquisitions and $472 thousand were related to digital radio. For the nine months capital expenditures were $6.2 million of which $1.7 million were as a result of acquisitions and $992 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 61 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. 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 http://www.sagacommunications.com/.
Saga's third quarter 2007 results conference call will be on Monday, November 5 at 11:00 AM EDT. The dial in number for domestic calls is 877/777-1972. For international callers the number is 612/332-0802. The call can be replayed for 7 days by calling domestically 800/475-6701 or internationally 320/365-3844 and referring to access code 890134. 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 Nine Months Ended September 30, 2007 and 2006 (amounts in 000's except per share data) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2007 2006 2007 2006 Operating Results Net operating revenue $36,218 $35,791 $106,522 $104,727 Station operating expense 25,975 25,761 78,986 76,833 Corporate general and administrative 2,272 2,225 7,194 6,705 Operating income 7,971 7,805 20,342 21,189 Interest expense 2,283 2,375 6,861 7,007 Other expense (income), net 60 (75) 142 (645) Income before income tax 5,628 5,505 13,339 14,827 Income tax expense 2,307 2,241 5,468 6,050 Net income $3,321 $3,264 $7,871 $8,777 Earnings per share Basic $0.17 $0.16 $0.39 $0.43 Diluted $0.17 $0.16 $0.39 $0.43 Weighted average common shares 20,112 20,488 20,082 20,515 Weighted average common shares and common shares equivalents 20,126 20,502 20,111 20,532 Free Cash Flow Net income $3,321 $3,264 $7,871 $8,777 Plus: Depreciation and amortization: Station 2,013 1,903 5,847 5,784 Corporate 48 48 146 144 Deferred tax provision 1,334 1,339 3,161 3,110 Non-cash compensation 376 385 991 984 Other expense (income), net 60 (75) 142 (645) Less: Capital expenditures (1,617) (2,124) (6,180) (6,836) Free cash flow $5,535 $4,740 $11,978 $11,318 Balance Sheet Data Working capital $22,560 $21,774 Net fixed assets 74,286 70,542 Net intangible assets and other assets 217,711 211,745 Total assets 330,935 320,148 Long term debt (including current portion of $0 and $0, respectively) 129,911 136,911 Stockholders' equity 145,543 133,564 Saga Communications, Inc. Selected Supplemental Financial Data For the Three Months Ended September 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 September 30, September 30, September 30, 2007 2006 2007 2006 2007 2006 Consolidated Net operating revenue $36,218 $35,791 $35,903 $35,778 $36,392 $36,082 Station operating expense 25,975 25,761 25,766 25,658 26,226 25,960 Corporate general and administrative 2,272 2,225 2,272 2,225 2,272 2,225 Operating income 7,971 7,805 $7,865 $7,895 7,894 7,897 Interest expense 2,283 2,375 2,283 2,375 Other expense (income), net 60 (75) 60 (75) Income tax expense 2,307 2,241 2,297 2,278 Net income $3,321 $3,264 $3,254 $3,319 Earnings per share: Basic $0.17 $0.16 $0.16 $0.16 Diluted $0.17 $0.16 $0.16 $0.16 As-Reported Same Station Pro Forma (1) Three Months Three Months Three Months Ended Ended Ended September 30, September 30, September 30, 2007 2006 2007 2006 2007 2006 Radio Segment Net operating revenue $31,904 $31,402 $31,589 $31,389 $32,078 $31,693 Station operating expense 22,492 22,300 22,283 22,197 22,743 22,499 Operating income $9,412 $9,102 $9,306 $9,192 $9,335 $9,194 As-Reported Same Station Pro Forma (1) Three Months Three Months Three Months Ended Ended Ended September 30, September 30, September 30, 2007 2006 2007 2006 2007 2006 Television Segment Net operating revenue $4,314 $4,389 $4,314 $4,389 $4,314 $4,389 Station operating expense 3,483 3,461 3,483 3,461 3,483 3,461 Operating income $831 $928 $831 $928 $831 $928 As-Reported Same Station Pro Forma (1) Three Months Three Months Three Months Ended Ended Ended September 30, September 30, September 30, 2007 2006 2007 2006 2007 2006 Depreciation and amortization by segment Radio Segment $1,608 $1,494 $1,567 $1,494 $1,623 $1,517 Television Segment 405 409 405 409 405 409 Corporate and Other 48 48 48 48 48 48 $2,061 $1,951 $2,020 $1,951 $2,076 $1,974 (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 Nine Months Ended September 30, 2007 and 2006 (amounts in 000's except per share data) (Unaudited) As-Reported Same Station Pro Forma (1) Nine Months Nine Months Nine Months Ended Ended Ended September 30, September 30, September 30, 2007 2006 2007 2006 2007 2006 Consolidated Net operating revenue $106,522 $104,727 $106,018 $104,714 $107,121 $105,540 Station operating expense 78,986 76,833 78,516 76,730 79,578 77,438 Corporate general and administrative 7,194 6,705 7,194 6,705 7,194 6,705 Operating income 20,342 21,189 $20,308 $21,279 20,349 21,397 Interest expense 6,861 7,007 6,861 7,007 Other expense (income), net 142 (645) 142 (645) Income tax expense 5,468 6,050 5,492 6,135 Net income $7,871 $8,777 $7,854 $8,900 Earnings per share: Basic $0.39 $0.43 $0.39 $0.43 Diluted $0.39 $0.43 $0.39 $0.43 As-Reported Same Station Pro Forma (1) Nine Months Nine Months Nine Months Ended Ended Ended September 30, September 30, September 30, 2007 2006 2007 2006 2007 2006 Radio Segment Net operating revenue $93,640 $92,100 $93,136 $92,087 $94,239 $92,913 Station operating expense 68,460 66,675 67,990 66,572 69,052 67,280 Operating income $25,180 $25,425 $25,146 $25,515 $25,187 $25,633 As-Reported Same Station Pro Forma (1) Nine Months Nine Months Nine Months Ended Ended Ended September 30, September 30, September 30, 2007 2006 2007 2006 2007 2006 Television Segment Net operating revenue $12,882 $12,627 $12,882 $12,627 $12,882 $12,627 Station operating expense 10,526 10,158 10,526 10,158 10,526 10,158 Operating income $2,356 $2,469 $2,356 $2,469 $2,356 $2,469 As-Reported Same Station Pro Forma (1) Nine Months Nine Months Nine Months Ended Ended Ended September 30, September 30, September 30, 2007 2006 2007 2006 2007 2006 Depreciation and amortization by segment Radio Segment $4,653 $4,569 $4,547 $4,569 $4,713 $4,637 Television Segment 1,194 1,215 1,194 1,215 1,194 1,215 Corporate and Other 146 144 146 144 146 144 $5,993 $5,928 $5,887 $5,928 $6,053 $5,996 (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 Proforma Information September 30, 2007 and 2006 (amounts in 000's except per share data) (Unaudited) Pro Forma (1) Pro Forma (1) Three Months Three Months Ended Ended March 31, June 30, 2007 2006 2007 2006 Consolidated Net operating revenue $32,085 $31,435 $38,644 $38,023 Station operating expense 26,176 24,912 27,176 26,566 Corporate general and administrative 2,316 1,981 2,606 2,499 Other operating income - - - - Operating income 3,593 4,542 8,862 8,958 Interest expense 2,297 2,277 2,281 2,355 Other expense (income), net 35 (355) 47 (215) Income tax expense 509 1,074 2,686 2,783 Net income $752 $1,546 $3,848 $4,035 Earnings per share: Basic $0.04 $0.08 $0.19 $0.20 Diluted $0.04 $0.08 $0.19 $0.20 Pro Forma (1) Pro Forma (1) Three Months Three Months Ended Ended March 31, June 30, 2007 2006 2007 2006 Radio Segment Net operating revenue $28,095 $27,524 $34,066 $33,696 Station operating expense 22,694 21,624 23,615 23,157 Other operating income - - - - Operating income $5,401 $5,900 $10,451 $10,539 Pro Forma (1) Pro Forma (1) Three Months Three Months Ended Ended March 31, June 30, 2007 2006 2007 2006 Television Segment Net operating revenue $3,990 $3,911 $4,578 $4,327 Station operating expense 3,482 3,288 3,561 3,409 Operating income $508 $623 $1,017 $918 Pro Forma (1) Pro Forma (1) Three Months Three Months Ended Ended March 31, June 30, 2007 2006 2007 2006 Depreciation and amortization by segment Radio Segment $1,529 $1,562 $1,561 $1,558 Television Segment 389 392 400 414 Corporate and Other 47 48 51 48 $1,965 $2,002 $2,012 $2,020 (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 Proforma Information September 30, 2007 and 2006 (amounts in 000's except per share data) (Unaudited) Pro Forma (1) Pro Forma (1) Three Months Three Months Ended Ended September 30, December 31, 2007 2006 2006 Consolidated Net operating revenue $36,392 $36,082 $38,474 Station operating expense 26,226 25,960 27,756 Corporate general and administrative 2,272 2,225 2,165 Other operating income - - (312) Operating income 7,894 7,897 8,865 Interest expense 2,283 2,375 2,372 Other expense (income), net 60 (75) 145 Income tax expense 2,297 2,278 2,641 Net income $3,254 $3,319 $3,707 Earnings per share: Basic $0.16 $0.16 $0.18 Diluted $0.16 $0.16 $0.18 Pro Forma (1) Pro Forma (1) Three Months Three Months Ended Ended September 30, December 31, 2007 2006 2006 Radio Segment Net operating revenue $32,078 $31,693 $33,429 Station operating expense 22,743 22,499 24,145 Other operating income - - (312) Operating income $9,335 $9,194 $9,596 Pro Forma (1) Pro Forma (1) Three Months Three Months Ended Ended September 30, December 31, 2007 2006 2006 Television Segment Net operating revenue $4,314 $4,389 $5,045 Station operating expense 3,483 3,461 3,611 Operating income $831 $928 $1,434 Pro Forma (1) Pro Forma (1) Three Months Three Months Ended Ended September 30, December 31, 2007 2006 2006 Depreciation and amortization by segment Radio Segment $1,623 $1,517 $1,732 Television Segment 405 409 458 Corporate and Other 48 48 50 $2,076 $1,974 $2,240 (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 September 30, 2007 and 2006 (amounts in 000's) (Unaudited) Reconciliation of As-Reported (historical) information to Same Station Operating Income Adjustment Adjustment For Acquisitions For Acquisitions and and As- Dispositions Same As- Dispositions Same Reported Not Station Reported Not Station Three Included Three Three Included Three Months in Months Months in Months Ended Entire Ended Ended Entire Ended Sept. 30, Comparable Sept. 30, Sept. 30, Comparable Sept. 30, 2007 Period 2007 2006 Period 2006 Consolidated Net operating revenue $36,218 ($315) $35,903 $35,791 ($13) $35,778 Station operating expense 25,975 (209) 25,766 25,761 (103) 25,658 Corporate general and administrative 2,272 - 2,272 2,225 - 2,225 Operating income $7,971 ($106) $7,865 $7,805 $90 $7,895 Adjustment Adjustment For Acquisitions For Acquisitions and and As- Dispositions Same As- Dispositions Same Reported Not Station Reported Not Station Three Included Three Three Included Three Months in Months Months in Months Ended Entire Ended Ended Entire Ended Sept. 30, Comparable Sept. 30, Sept. 30, Comparable Sept. 30, 2007 Period 2007 2006 Period 2006 Radio Segment Net operating revenue $31,904 ($315) $31,589 $31,402 ($13) $31,389 Station operating expense 22,492 (209) 22,283 22,300 (103) 22,197 Operating income $9,412 ($106) $9,306 $9,102 $90 $9,192 Adjustment Adjustment For Acquisitions For Acquisitions and and As- Dispositions Same As- Dispositions Same Reported Not Station Reported Not Station Three Included Three Three Included Three Months in Months Months in Months Ended Entire Ended Ended Entire Ended Sept. 30, Comparable Sept. 30, Sept. 30, Comparable Sept. 30, 2007 Period 2007 2006 Period 2006 Television Segment Net operating revenue $4,314 - $4,314 $4,389 - $4,389 Station operating expense 3,483 - 3,483 3,461 - 3,461 Operating income $831 - $831 $928 - $928 Saga Communications, Inc. Selected Financial Data Non-GAAP Disclosures For the Nine Months Ended September 30, 2007 and 2006 (amounts in 000's) (Unaudited) Reconciliation of As-Reported (historical) information to Same Station Operating Income Adjustment Adjustment For Acquisitions For Acquisitions and and As- Dispositions Same As- Dispositions Same Reported Not Station Reported Not Station Nine Included Nine Nine Included Nine Months in Months Months in Months Ended Entire Ended Ended Entire Ended Sept. 30, Comparable Sept. 30, Sept. 30, Comparable Sept. 30, 2007 Period 2007 2006 Period 2006 Consolidated Net operating revenue $106,522 ($504) $106,018 $104,727 ($13) $104,714 Station operating expense 78,986 (470) 78,516 76,833 (103) 76,730 Corporate general and administrative 7,194 - 7,194 6,705 - 6,705 Operating income $20,342 ($34) $20,308 $21,189 $90 $21,279 Adjustment Adjustment For Acquisitions For Acquisitions and and As- Dispositions Same As- Dispositions Same Reported Not Station Reported Not Station Nine Included Nine Nine Included Nine Months in Months Months in Months Ended Entire Ended Ended Entire Ended Sept. 30, Comparable Sept. 30, Sept. 30, Comparable Sept. 30, 2007 Period 2007 2006 Period 2006 Radio Segment Net operating revenue $93,640 ($504) $93,136 $92,100 ($13) $92,087 Station operating expense 68,460 (470) 67,990 66,675 (103) 66,572 Operating income $25,180 ($34) $25,146 $25,425 $90 $25,515 Adjustment Adjustment For Acquisitions For Acquisitions and and As- Dispositions Same As- Dispositions Same Reported Not Station Reported Not Station Nine Included Nine Nine Included Nine Months in Months Months in Months Ended Entire Ended Ended Entire Ended Sept. 30, Comparable Sept. 30, Sept. 30, Comparable Sept. 30, 2007 Period 2007 2006 Period 2006 Television Segment Net operating revenue $12,882 - $12,882 $12,627 - $12,627 Station operating expense 10,526 - 10,526 10,158 - 10,158 Operating income $2,356 - $2,356 $2,469 - $2,469
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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