Saga Communications, Inc. Reports 2nd Quarter 2009 Results
Saga Communications, Inc. Reports 2nd Quarter 2009 Results
GROSSE POINTE FARMS, Mich., Aug. 6 /PRNewswire-FirstCall/ -- Saga Communications, Inc. (NYSE Amex: SGA) today reported that 2nd quarter 2009 free cash flow increased 1.2% to $6.0 million compared to $5.9 million for the same period last year. Net operating revenue decreased 15.3% from the comparable period in 2008 to $31.6 million and operating income decreased to $6.2 million. Net income was $2.7 million ($.63 per fully diluted share) for the quarter ended June 30, 2009 compared to $3.5 million ($.70 per fully diluted share) for the comparable period in 2008. For the same period, station operating expense decreased $4.0 million to $23.3 million (station operating expense includes depreciation and amortization attributable to the stations). A large part of the decrease in station operating expense was a result of our cost reduction initiatives. This helped to reduce the impact that the decline in net operating revenue had on our operating results. On a same station basis for the quarter, net operating revenue decreased 16.3% to $31.3 million, operating income was $6.0 million and station operating expense decreased $4.1 million to $23.1 million.
For the six month period ended June 30, 2009, free cash flow decreased $653 thousand to $6.9 million. Net operating revenue decreased 16.1% from the comparable period in 2008 to $57.8 million and operating income was $6.3 million. Net income was $2.3 million ($.55 per fully diluted share) compared to $4.4 million ($.88 per fully diluted share) for the comparable period in 2008. For the same period, station operating expense decreased $5.4 million to $47.2 million (station operating expense includes depreciation and amortization attributable to the stations). On a same station basis for the six months, net operating revenue decreased 17.0% to $57.2 million, operating income was $6.1 million and station operating expense decreased $5.8 million to $46.9 million.
All share and per share information has been adjusted for the Company's January 28, 2009 1-for-4 reverse stock split.
Capital expenditures in the second quarter of 2009 were $1.5 million. For the six months, capital expenditures were $2.6 million. Currently we expect capital expenditures for the year to be approximately $3.5 - $4.0 million.
The attached Selected Supplemental Financial Data table discloses "as reported" and "same station" 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.
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. For additional information, contact us at (313) 886-7070 or visit our website at www.sagacommunications.com.
Saga's second quarter 2009 results conference call will be on Thursday, August 6, 2009 at 2:00 PM EDT. The dial in number for domestic and international calls is 612/332-0107. The call can be replayed for 7 days by calling domestically 800/475-6701 or internationally 320/365-3844 and referring to access code 105208. Thereafter, a transcript of the call will be available on our website.
The Company requests that all parties that have a question that they would like to submit to the Company to please email the inquiry by 1:00 PM EDT on August 6, 2009 to SagaIR@sagacom.com. The Company will discuss, during the limited period of the conference call, those inquiries it deems of general relevance and interest. Only inquiries made in compliance with the foregoing will be discussed during the call.
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, including Item 1A of our annual report on Form 10-K. 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, 2009 and 2008 (amounts in 000's except per share data) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, ---------- ---------- 2009 2008 2009 2008 ---- ---- ---- ---- Operating Results Net operating revenue $31,637 $37,342 $57,761 $68,874 Station operating expense 23,295 27,246 47,235 52,667 Corporate general and administrative 2,158 2,574 4,225 5,126 Gain on asset exchange - (224) - (224) -- ---- -- ---- Operating income 6,184 7,746 6,301 11,305 Interest expense 1,430 1,876 2,203 3,871 Other expense (income), net (28) 7 (32) 27 --- -- --- -- Income before income tax 4,782 5,863 4,130 7,407 Income tax expense 2,108 2,403 1,818 3,037 ----- ----- ----- ----- Net income $2,674 $3,460 $2,312 $4,370 ====== ====== ====== ====== Earnings per share Basic $0.63 $0.70 $0.55 $0.88 ===== ===== ===== ===== Diluted $0.63 $0.70 $0.55 $0.88 ===== ===== ===== ===== Weighted average common shares 4,226 4,950 4,192 4,983 Weighted average common shares and common shares equivalents 4,227 4,951 4,193 4,984 Free Cash Flow Net income $2,674 $3,460 $2,312 $4,370 Plus: Depreciation and amortization: Station 2,180 2,196 4,377 4,153 Corporate 48 53 109 106 Deferred tax provision 2,253 1,524 2,038 1,926 Non-cash compensation 343 354 670 720 Gain on asset exchange - (224) - (224) Other expense (income), net (28) 7 (32) 27 Less: Capital expenditures (1,509) (1,479) (2,574) (3,525) ------ ------ ------ ------ Free cash flow $5,961 $5,891 $6,900 $7,553 ====== ====== ====== ====== Balance Sheet Data Working capital $11,682 $22,936 Net fixed assets 71,508 75,846 Net intangible assets and other assets 113,687 228,975 Total assets 223,982 344,392 Long-term debt (including current portion of $13,428 and $1,061, respectively) 133,428 134,411 Stockholders' equity 68,275 151,381 Saga Communications, Inc. Selected Supplemental Financial Data For the Three Months Ended June 30, 2009 and 2008 (amounts in 000's except per share data) (Unaudited) As-Reported Same Station Three Months Ended Three Months Ended June 30, June 30, 2009 2008 2009 2008 ---- ---- ---- ---- Consolidated Net operating revenue $31,637 $37,342 $31,253 $37,342 Station operating expense 23,295 27,246 23,123 27,246 Corporate general and administrative 2,158 2,574 2,158 2,574 Gain on asset exchange - (224) - (224) -- ---- -- ---- Operating income 6,184 7,746 $5,972 $7,746 Interest expense 1,430 1,876 Other expense (income), net (28) 7 Income tax expense 2,108 2,403 ----- ----- Net income $2,674 $3,460 ====== ====== Earnings per share: Basic $0.63 $0.70 ===== ===== Diluted $0.63 $0.70 ===== ===== As-Reported Same Station Three Months Ended Three Months Ended June 30, June 30, 2009 2008 2009 2008 ---- ---- ---- ---- Radio Segment Net operating revenue $27,530 $32,629 $27,146 $32,629 Station operating expense 19,694 23,398 19,522 23,398 ------ ------ ------ ------ Operating income $7,836 $9,231 $7,624 $9,231 ====== ====== ====== ====== As-Reported Same Station Three Months Ended Three Months Ended June 30, June 30, 2009 2008 2009 2008 ---- ---- ---- ---- Television Segment Net operating revenue $4,107 $4,713 $4,107 $4,713 Station operating expense 3,601 3,848 3,601 3,848 Gain on asset exchange - (224) - (224) -- ---- -- ---- Operating income $506 $1,089 $506 $1,089 ==== ====== ==== ====== As-Reported Same Station Three Months Ended Three Months Ended June 30, June 30, 2009 2008 2009 2008 ---- ---- ---- ---- Depreciation and amortization by segment Radio Segment $1,516 $1,591 $1,510 $1,591 Television Segment 664 605 664 605 Corporate and Other 48 53 48 53 -- -- -- -- $2,228 $2,249 $2,222 $2,249 ====== ====== ====== ====== Saga Communications, Inc. Selected Supplemental Financial Data For the Six Months Ended June 30, 2009 and 2008 (amounts in 000's except per share data) (Unaudited) As-Reported Same Station Six Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 ---- ---- ---- ---- Consolidated Net operating revenue $57,761 $68,874 $57,189 $68,874 Station operating expense 47,235 52,667 46,914 52,667 Corporate general and administrative 4,225 5,126 4,225 5,126 Gain on asset exchange - (224) - (224) -- ---- -- ---- Operating income 6,301 11,305 $6,050 $11,305 Interest expense 2,203 3,871 Other expense (income), net (32) 27 Income tax expense 1,818 3,037 ----- ----- Net income $2,312 $4,370 ====== ====== Earnings per share: Basic $0.55 $0.88 ===== ===== Diluted $0.55 $0.88 ===== ===== As-Reported Same Station Six Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 ---- ---- ---- ---- Radio Segment Net operating revenue $50,227 $60,010 $49,655 $60,010 Station operating expense 40,011 45,311 39,690 45,311 ------ ------ ------ ------ Operating income $10,216 $14,699 $9,965 $14,699 ======= ======= ====== ======= As-Reported Same Station Six Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 ---- ---- ---- ---- Television Segment Net operating revenue $7,534 $8,864 $7,534 $8,864 Station operating expense 7,224 7,356 7,224 7,356 Gain on asset exchange - (224) - (224) -- ---- -- ---- Operating income $310 $1,732 $310 $1,732 ==== ====== ==== ====== As-Reported Same Station Six Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 ---- ---- ---- ---- Depreciation and amortization by segment Radio Segment $3,047 $3,153 $3,035 $3,153 Television Segment 1,330 1,000 1,330 1,000 Corporate and Other 109 106 109 106 --- --- --- --- $4,486 $4,259 $4,474 $4,259 ====== ====== ====== ====== Saga Communications, Inc. Selected Financial Data Non-GAAP Disclosures For the Three Months Ended June 30, 2009 and 2008 (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 and Dispositions Three Months Ended Not Included in Ended June 30, Entire Comparable June 30, 2009 Period 2009 ---- ------ ---- Consolidated Net operating revenue $31,637 $(384) $31,253 Station operating expense 23,295 (172) 23,123 Corporate general and administrative 2,158 - 2,158 Gain on asset exchange - - - ------ ----- ------ Operating income $6,184 $(212) $5,972 ====== ===== ====== Adjustment As-Reported For Acquisitions Same Station Three Months and Dispositions Three Months Ended Not Included in Ended June 30, Entire Comparable June 30, 2009 Period 2009 ---- ------ ---- Radio Segment Net operating revenue $27,530 $(384) $27,146 Station operating expense 19,694 (172) 19,522 ------ ----- ------ Operating income $7,836 $(212) $7,624 ====== ===== ====== Adjustment As-Reported For Acquisitions Same Station Three Months and Dispositions Three Months Ended Not Included in Ended June 30, Entire Comparable June 30, 2009 Period 2009 ---- ------ ---- Television Segment Net operating revenue $4,107 - $4,107 Station operating expense 3,601 - 3,601 Gain on asset exchange - - - ---- --- ---- Operating income $506 - $506 ==== === ==== Adjustment As-Reported For Acquisitions Same Station Three Months and Dispositions Three Months Ended Not Included in Ended June 30, Entire Comparable June 30, 2008 Period 2008 ---- ------ ---- Consolidated Net operating revenue $37,342 - $37,342 Station operating expense 27,246 - 27,246 Corporate general and administrative 2,574 - 2,574 Gain on asset exchange (224) - (224) ------ --- ------ Operating income $7,746 - $7,746 ====== === ====== Adjustment As-Reported For Acquisitions Same Station Three Months and Dispositions Three Months Ended Not Included in Ended June 30, Entire Comparable June 30, 2008 Period 2008 ---- ------ ---- Radio Segment Net operating revenue $32,629 - $32,629 Station operating expense 23,398 - 23,398 ------ --- ------ Operating income $9,231 - $9,231 ====== === ====== Adjustment As-Reported For Acquisitions Same Station Three Months and Dispositions Three Months Ended Not Included in Ended June 30, Entire Comparable June 30, 2008 Period 2008 ---- ------ ---- Television Segment Net operating revenue $4,713 - $4,713 Station operating expense 3,848 - 3,848 Gain on asset exchange (224) - (224) ------ --- ------ Operating income $1,089 - $1,089 ====== === ====== Saga Communications, Inc. Selected Financial Data Non-GAAP Disclosures For the Six Months Ended June 30, 2009 and 2008 (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 and Dispositions Six Months Ended Not Included in Ended June 30, Entire Comparable June 30, 2009 Period 2009 ---- ------ ---- Consolidated Net operating revenue $57,761 $(572) $57,189 Station operating expense 47,235 (321) 46,914 Corporate general and administrative 4,225 - 4,225 Gain on asset exchange - - - ------ ----- ------ Operating income $6,301 $(251) $6,050 ====== ===== ====== Adjustment As-Reported For Acquisitions Same Station Six Months and Dispositions Six Months Ended Not Included in Ended June 30, Entire Comparable June 30, 2009 Period 2009 ---- ------ ---- Radio Segment Net operating revenue $50,227 $(572) $49,655 Station operating expense 40,011 (321) 39,690 ------- ----- ------ Operating income $10,216 $(251) $9,965 ======= ===== ====== Adjustment As-Reported For Acquisitions Same Station Six Months and Dispositions Six Months Ended Not Included in Ended June 30, Entire Comparable June 30, 2009 Period 2009 ---- ------ ---- Television Segment Net operating revenue $7,534 - $7,534 Station operating expense 7,224 - 7,224 Gain on asset exchange - - - ---- --- ---- Operating income $310 - $310 ==== === ==== Adjustment As-Reported For Acquisitions Same Station Six Months and Dispositions Six Months Ended Not Included in Ended June 30, Entire Comparable June 30, 2008 Period 2008 ---- ------ ---- Consolidated Net operating revenue $68,874 - $68,874 Station operating expense 52,667 - 52,667 Corporate general and administrative 5,126 - 5,126 Gain on asset exchange (224) - (224) ------- --- ------- Operating income $11,305 - $11,305 ======= === ======= Adjustment As-Reported For Acquisitions Same Station Six Months and Dispositions Six Months Ended Not Included in Ended June 30, Entire Comparable June 30, 2008 Period 2008 ---- ------ ---- Radio Segment Net operating revenue $60,010 - $60,010 Station operating expense 45,311 - 45,311 ------- --- ------- Operating income $14,699 - $14,699 ======= === ======= Adjustment As-Reported For Acquisitions Same Station Six Months and Dispositions Six Months Ended Not Included in Ended June 30, Entire Comparable June 30, 2008 Period 2008 ---- ------ ---- Television Segment Net operating revenue $8,864 - $8,864 Station operating expense 7,356 - 7,356 Gain on asset exchange (224) - (224) ------ --- ------ Operating income $1,732 - $1,732 ====== === ======
First Call Analyst: Bush, Samuel D.
FCMN Contact: aparks@sagacom.com
Source: Saga Communications, Inc.
CONTACT: Samuel D. Bush, Saga Communications, Inc., +1-313-886-7070
Web Site: http://www.sagacommunications.com/
Profile: International Entertainment
posted by EntertainmentNews @ 9:03 AM
0 comments
0 Comments:
Post a Comment
<< Home