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 http://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 . 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 ====== === ======
DATASOURCE: Saga Communications, Inc. CONTACT: Samuel D. Bush, Saga
Communications, Inc., +1-313-886-7070 Web Site:
http://www.sagacommunications.com/
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