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8-K - FORM 8-K - SAGA COMMUNICATIONS INC | b88830e8vk.htm |
Exhibit 99.1
Saga Communications, Inc.
Reports 3rd Quarter 2011 Results
Reports 3rd Quarter 2011 Results
Contact:
Samuel D. Bush
313/886-7070
Samuel D. Bush
313/886-7070
Grosse Pointe Farms, MI November 3, 2011 Saga Communications, Inc. (NYSE Amex-SGA) today
reported net income for the 3rd quarter increased 3.9% to $3.7 million ($0.87 per fully
diluted share compared to $0.84 per fully diluted share for the same period last year). Free cash
flow was flat with the same period last year at $6.0 million. For the three month period ended
September 30, 2011, net operating revenue decreased 1.0% from the comparable period in 2010 to
$32.5 million with operating income of $7.0 million compared to $7.4 million for the same period
last year. For the same period, station operating expense was also even with last year at $23.6
million (station operating expense includes depreciation and amortization attributable to the
stations).
For the nine month period free cash flow increased 10.6% to $15.5 million compared to $14.0 million
for the same period in 2010. The Companys net operating revenue increased 0.8% to $94.4 million
while station operating expense increased 0.8% compared to the same period last year to $69.9
million (station operating expense includes depreciation and amortization attributable to the
stations). Operating income was $18.6 million compared to $18.8 million for the same period last
year and net income for the period was $8.5 million ($2.01 per fully diluted share compared to
$2.50 per fully diluted share for the same period last year).
Capital expenditures in the third quarter of 2011 were $1.6 million compared to $1.1 million for
the same period last year. For the nine month period capital expenditures were $4.1 million
compared to $3.3 million for the same period last year. The Company currently expects to spend
approximately $5.5 $6.0 million for capital expenditures during 2011.
The Company continues to maintain a solid balance sheet with $7.6 million in cash balances as of
September 30, 2011. As of September 30, 2011, the Companys outstanding bank debt was $75.3
million. The trailing 12 month leverage ratio calculated as a multiple of consolidated EBITDA was
2.2 times.
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 free cash flow, trailing 12 month consolidated EBITDA, and leverage ratio. 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, as a primary measure for incentive
based compensation of executives and other members of management and as a measure of financial
position. Sagas 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 Supplemental Financial Data
table.
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.
Sagas 3rd Quarter 2011 conference call will be on Thursday, November 3, 2011 at 2:00 p.m.
EDT. The dial-in number for all calls is (612) 332-0107. A transcript of the call will be posted
to the Companys web site after the call.
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 p.m. EDT on November 3, 2011 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 Sagas ability to effectively integrate the stations it acquires
and the impact of federal regulation on Sagas 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 Sagas 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, 2011 and 2010
(amounts in 000s except per share data)
(Unaudited)
Selected Consolidated Financial Data
For The Three and Nine Months Ended
September 30, 2011 and 2010
(amounts in 000s except per share data)
(Unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Operating Results |
||||||||||||||||
Net operating revenue |
$ | 32,494 | $ | 32,810 | $ | 94,385 | $ | 93,684 | ||||||||
Station operating expense |
23,553 | 23,629 | 69,912 | 69,346 | ||||||||||||
Corporate general and administrative |
1,965 | 1,741 | 5,854 | 5,520 | ||||||||||||
Operating income |
6,976 | 7,440 | 18,619 | 18,818 | ||||||||||||
Interest expense |
646 | 1,375 | 2,837 | 4,362 | ||||||||||||
Write-off revolving credit facility debt issuance costs |
| | 1,326 | | ||||||||||||
Other (income) expense, net |
27 | 13 | | (3,398 | ) | |||||||||||
Income before income tax |
6,303 | 6,052 | 14,456 | 17,854 | ||||||||||||
Income tax expense |
2,609 | 2,495 | 5,930 | 7,285 | ||||||||||||
Net income |
$ | 3,694 | $ | 3,557 | $ | 8,526 | $ | 10,569 | ||||||||
Earnings per share |
||||||||||||||||
Basic |
$ | 0.87 | $ | 0.84 | $ | 2.01 | $ | 2.50 | ||||||||
Diluted |
$ | 0.87 | $ | 0.84 | $ | 2.01 | $ | 2.50 | ||||||||
Weighted average common shares |
4,242 | 4,236 | 4,238 | 4,230 | ||||||||||||
Weighted average common and common
equivalent shares |
4,246 | 4,236 | 4,242 | 4,230 | ||||||||||||
Free Cash Flow |
||||||||||||||||
Net income |
$ | 3,694 | $ | 3,557 | $ | 8,526 | $ | 10,569 | ||||||||
Plus: Depreciation and amortization: |
||||||||||||||||
Station |
1,826 | 1,885 | 5,339 | 5,583 | ||||||||||||
Corporate |
60 | 57 | 173 | 163 | ||||||||||||
Deferred tax provision |
1,900 | 1,430 | 3,950 | 3,625 | ||||||||||||
Non-cash compensation |
75 | 187 | 311 | 715 | ||||||||||||
Debt issuance cost write-off |
| | 1,326 | | ||||||||||||
Other (income) expense, net |
27 | 13 | | (3,398 | ) | |||||||||||
Less: Capital expenditures |
(1,618 | ) | (1,113 | ) | (4,140 | ) | (3,259 | ) | ||||||||
Free cash flow |
$ | 5,964 | $ | 6,016 | $ | 15,485 | $ | 13,998 | ||||||||
Balance Sheet Data |
||||||||||||||||
Working capital |
$ | 14,748 | $ | 15,185 | ||||||||||||
Net fixed assets |
$ | 64,211 | $ | 66,473 | ||||||||||||
Net intangible assets and other assets |
$ | 96,675 | $ | 97,117 | ||||||||||||
Total assets |
$ | 192,190 | $ | 202,720 | ||||||||||||
Long-term debt (including current
portion of $4,000 and $11,088, respectively) |
$ | 76,328 | $ | 105,578 | ||||||||||||
Stockholders equity |
$ | 88,798 | $ | 75,298 |
Saga Communications, Inc.
Selected Supplemental Financial Data
For the Three and Nine Months Ended
September 30, 2011 and 2010
(amounts in 000s)
(Unaudited)
Selected Supplemental Financial Data
For the Three and Nine Months Ended
September 30, 2011 and 2010
(amounts in 000s)
(Unaudited)
Corporate | ||||||||||||||||
Radio | Television | and Other | Consolidated | |||||||||||||
Three Months Ended September 30, 2011: |
||||||||||||||||
Net operating revenue |
$ | 27,885 | $ | 4,609 | $ | | $ | 32,494 | ||||||||
Station operating expense |
20,029 | 3,524 | | 23,553 | ||||||||||||
Corporate G&A |
| | 1,965 | 1,965 | ||||||||||||
Operating income (loss) |
$ | 7,856 | $ | 1,085 | $ | (1,965 | ) | $ | 6,976 | |||||||
Depreciation and amortization |
$ | 1,385 | $ | 441 | $ | 60 | $ | 1,886 | ||||||||
Corporate | ||||||||||||||||
Radio | Television | and Other | Consolidated | |||||||||||||
Three Months Ended September 30, 2010: |
||||||||||||||||
Net operating revenue |
$ | 28,089 | $ | 4,721 | $ | | $ | 32,810 | ||||||||
Station operating expense |
20,134 | 3,495 | | 23,629 | ||||||||||||
Corporate G&A |
| | 1,741 | 1,741 | ||||||||||||
Operating income (loss) |
$ | 7,955 | $ | 1,226 | $ | (1,741 | ) | $ | 7,440 | |||||||
Depreciation and amortization |
$ | 1,447 | $ | 438 | $ | 57 | $ | 1,942 | ||||||||
Corporate | ||||||||||||||||
Radio | Television | and Other | Consolidated | |||||||||||||
Nine Months Ended September 30, 2011: |
||||||||||||||||
Net operating revenue |
$ | 81,002 | $ | 13,383 | $ | | $ | 94,385 | ||||||||
Station operating expense |
59,311 | 10,601 | | 69,912 | ||||||||||||
Corporate G&A |
| | 5,854 | 5,854 | ||||||||||||
Operating income (loss) |
$ | 21,691 | $ | 2,782 | $ | (5,854 | ) | $ | 18,619 | |||||||
Depreciation and amortization |
$ | 4,072 | $ | 1,267 | $ | 173 | $ | 5,512 | ||||||||
Corporate | ||||||||||||||||
Radio | Television | and Other | Consolidated | |||||||||||||
Nine Months Ended September 30, 2010: |
||||||||||||||||
Net operating revenue |
$ | 80,894 | $ | 12,790 | $ | | $ | 93,684 | ||||||||
Station operating expense |
59,184 | 10,162 | | 69,346 | ||||||||||||
Corporate G&A |
| | 5,520 | 5,520 | ||||||||||||
Operating income (loss) |
$ | 21,710 | $ | 2,628 | $ | (5,520 | ) | $ | 18,818 | |||||||
Depreciation and amortization |
$ | 4,312 | $ | 1,271 | $ | 163 | $ | 5,746 | ||||||||
Saga Communications, Inc.
Selected Supplemental Financial Data
September 30, 2011
(amounts in 000s except ratios)
(Unaudited)
Selected Supplemental Financial Data
September 30, 2011
(amounts in 000s except ratios)
(Unaudited)
Less: | Plus: | Trailing | ||||||||||||||
12 Mos Ended | 9 Mos Ended | 9 Mos Ended | 12 Mos Ended | |||||||||||||
December 31, | September 30, | September 30, | September 30, | |||||||||||||
2010 | 2010 | 2011 | 2011 | |||||||||||||
Trailing 12 Month Consolidated EBITDA (1) |
||||||||||||||||
Net income |
$ | 15,136 | $ | 10,569 | $ | 8,526 | $ | 13,093 | ||||||||
Less: Loss on sale of assets |
(386 | ) | (364 | ) | (109 | ) | (131 | ) | ||||||||
Other gains |
| 201 | 109 | (92 | ) | |||||||||||
Gain on license downgrade |
3,756 | 3,561 | | 195 | ||||||||||||
Loss on write-off of unamortized debt issuance costs |
| | (1,326 | ) | (1,326 | ) | ||||||||||
Other |
46 | 24 | 201 | 223 | ||||||||||||
Total exclusions |
3,416 | 3,422 | (1,125 | ) | (1,131 | ) | ||||||||||
Consolidated adjusted net income (1) |
11,720 | 7,147 | 9,651 | 14,224 | ||||||||||||
Plus: Interest expense |
5,622 | 4,362 | 2,837 | 4,097 | ||||||||||||
Income tax expense |
10,400 | 7,285 | 5,930 | 9,045 | ||||||||||||
Depreciation & amortization expense |
7,718 | 5,746 | 5,512 | 7,484 | ||||||||||||
Amortization of television syndicated programming
contracts |
732 | 541 | 543 | 734 | ||||||||||||
Non-cash stock based compensation expense |
927 | 715 | 311 | 523 | ||||||||||||
Less: Cash television programming payments |
(744 | ) | (552 | ) | (536 | ) | (728 | ) | ||||||||
Trailing twelve month consolidated EBITDA (1) |
$ | 36,375 | $ | 25,244 | $ | 24,248 | $ | 35,379 | ||||||||
Total long-term debt, including current maturities |
$ | 76,328 | ||||||||||||||
Divided by trailing twelve month consolidated EBITDA (1) |
35,379 | |||||||||||||||
Leverage ratio |
2.2 | |||||||||||||||
(1) As defined in the Companys credit facility.