GROSSE POINTE FARMS, Mich., March 31 /PRNewswire-FirstCall/ -- Saga
Communications, Inc. (NYSE Amex: SGA) today reported free cash flow
increased 17.3% to $18.9 million for the year. Net operating
revenue for the year ended December 31, 2008 decreased 2.8% over
the comparable period in 2007 to $140.0 million. Station operating
expense decreased 0.5% to $105.8 million (station operating expense
includes depreciation and amortization attributable to the
stations). The Company's net loss was $66.5 million ($14.05 per
fully diluted share) for the year ended December 31, 2008 compared
to net income of $11.0 million ($2.19 per fully diluted share) for
the same period last year. Results for the full year of 2008
include a pre-tax non-cash impairment charge of $116.4 million
related to the Company's review of its indefinite-lived intangible
assets. There was no such charge in 2007. Without the non-cash
impairment charge, the Company would have had a net income of $9.9
million ($2.08 per fully diluted share) for the year. On a same
station basis for the year, net operating revenue decreased 3.5% to
$138.6 million, operating income (excluding the non-cash impairment
charge) decreased 12.6% to $24.3 million and station operating
expense decreased 1.2% to $104.8 million. For the quarter ended
December 31, 2008 free cash flow increased 42.0% to $5.9 million
for the quarter. Net operating revenue decreased 7.0% from the
comparable period in 2007 to $35.0 million. Station operating
expense decreased 2.8% to $26.6 million (station operating expense
includes depreciation and amortization attributable to the
stations). The Company's net loss was $74.0 million for the quarter
ended December 31, 2008 compared to a net income of $3.1 million
for the same period last year. Results for the fourth quarter of
2008 include a pre-tax non-cash impairment charge of $116.4 million
related to the Company's review of its indefinite-lived intangible
assets. On a same station basis for the quarter, net operating
revenue decreased 7.2% to $34.7 million, operating income
(excluding the non-cash impairment charge) decreased 21.0% to $6.0
million and station operating expense decreased 3.1% to $26.4
million. Capital expenditures in the fourth quarter of 2008 were
$2.0 million. For the 2008 fiscal year total capital expenditures
were $7.1 million. This compares to $3.7 million and $9.9 million
for the same respective periods last year. The Company currently
expects to spend approximately $3.5 million for capital
expenditures during 2009. During the year ended December 31, 2008,
the Company bought back 899,601 shares of stock for a total
purchase price of $19.2 million. For the three month period ended
December 31, 2008 the Company bought back 378,412 shares for a
total purchase price of $7.4 million. All share and per share
information have been adjusted for the Company's January 28, 2009
1-for-4 reverse stock split. 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 2008 and 2007
acquisitions and dispositions occurred as of January 1, 2007. 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/. 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 Twelve Months Ended December 31, 2008 and 2007
(amounts in 000's except per share data) (Unaudited) Three Months
Twelve Months Ended Ended December 31, December 31, 2008 2007 2008
2007 Operating Results Net operating revenue $34,890 $37,501
$139,956 $144,023 Station operating expense 26,550 27,316 105,805
106,302 Corporate general and administrative 2,368 2,606 9,979
9,800 Gain on asset exchange - - (506) - Impairment of intangible
assets 116,443 - 116,443 - Operating income (loss) (110,471) 7,579
(91,765) 27,921 Interest expense 1,413 2,093 7,173 8,954 Other
expense, net 49 131 76 273 Income (loss) before income tax
(111,933) 5,355 (99,014) 18,694 Income tax expense (benefit)
(37,974) 2,222 (32,522) 7,690 Net income (loss) $(73,959) $3,133
$(66,492) $11,004 Earnings (loss) per share Basic $(17.41) $0.62
$(14.05) $2.19 Diluted $(17.41) $0.62 $(14.05) $2.19 Weighted
average common shares 4,249 5,030 4,734 5,023 Weighted average
common shares and common shares equivalents 4,249 5,033 4,734 5,029
Free Cash Flow Net income (loss) $(73,959) $3,133 $(66,492) $11,004
Plus: Depreciation and amortization: Station 2,348 2,135 8,739
7,982 Corporate 62 58 222 204 Deferred tax provision (37,445) 1,983
(33,879) 5,144 Non-cash compensation 374 375 1,433 1,366 Gain on
asset exchange - - (506) - Impairment of intangible assets 116,443
- 116,443 - Other expense, net 49 131 76 273 Less: Capital
expenditures (1,993) (3,672) (7,127) (9,852) Free cash flow $5,879
$4,143 $18,909 $16,121 Balance Sheet Data Working capital $20,438
$24,075 Net fixed assets 73,383 76,217 Net intangible assets and
other assets 113,276 220,045 Total assets 221,460 337,644 Long term
debt (including current portion of $1,061 and $0, respectively)
135,411 129,911 Stockholders' equity 65,097 149,076 Saga
Communications, Inc. Selected Supplemental Financial Data For the
Three Months Ended December 31, 2008 and 2007 (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
December 31, December 31, December 31, 2008 2007 2008 2007 2008
2007 Consolidated Net operating revenue $34,890 $37,501 $34,746
$37,429 $34,890 $37,537 Station operating expense 26,550 27,316
26,388 27,244 26,550 27,352 Corporate general and administrative
2,368 2,606 2,368 2,606 2,368 2,606 Impairment of intangible assets
116,443 - 116,443 - 116,443 - Operating income (loss) (110,471)
7,579 $(110,453) $7,579 (110,471) 7,579 Interest expense 1,413
2,093 1,413 2,093 Other expense, net 49 131 49 131 Income tax
expense (benefit) (37,974) 2,222 (37,974) 2,222 Net income (loss)
$(73,959) $3,133 $(73,959) $3,133 Earnings (loss) per share: Basic
$(17.41) $0.62 $(17.41) $0.62 Diluted $(17.41) $0.62 $(17.41) $0.62
As-Reported Same Station Pro Forma (1) Three Months Three Months
Three Months Ended Ended Ended December 31, December 31, December
31, 2008 2007 2008 2007 2008 2007 Radio Segment Net operating
revenue $29,756 $32,956 $29,612 $32,884 $29,756 $32,992 Station
operating expense 22,513 23,702 22,351 23,630 22,513 23,738
Impairment of intangible assets 114,979 - 114,979 - 114,979 -
Operating income (loss) $(107,736) $9,254 $(107,718) $9,254
$(107,736) $9,254 As-Reported Same Station Pro Forma (1) Three
Months Three Months Three Months Ended Ended Ended December 31,
December 31, December 31, 2008 2007 2008 2007 2008 2007 Television
Segment Net operating revenue $5,134 $4,545 $5,134 $4,545 $5,134
$4,545 Station operating expense 4,037 3,614 4,037 3,614 4,037
3,614 Impairment of intangible assets 1,464 - 1,464 - 1,464 -
Operating income (loss) $(367) $931 $(367) $931 $(367) $931
As-Reported Same Station Pro Forma (1) Three Months Three Months
Three Months Ended Ended Ended December 31, December 31, December
31, 2008 2007 2008 2007 2008 2007 Depreciation and amortization by
segment Radio Segment $1,676 $1,710 $1,676 $1,685 $1,676 $1,723
Television Segment 672 425 672 425 672 425 Corporate and Other 62
58 62 58 62 58 $2,410 $2,193 $2,410 $2,168 $2,410 $2,206 (1) Pro
Forma results assume all acquisitions and dispositions in 2007 and
2008 occurred as of January 1, 2007. Saga Communications, Inc.
Selected Supplemental Financial Data For the Twelve Months Ended
December 31, 2008 and 2007 (amounts in 000's except per share data)
(Unaudited) As-Reported Same Station Pro Forma (1) Twelve Months
Twelve Months Twelve Months Ended Ended Ended December 31, December
31, December 31, 2008 2007 2008 2007 2008 2007 Consolidated Net
operating revenue $139,956 $144,023 $138,601 $143,684 $139,956
$144,982 Station operating expense 105,805 106,302 104,782 106,039
105,805 107,159 Corporate general and administrative 9,979 9,800
9,979 9,800 9,979 9,800 Gain on asset exchange (506) - (506) -
(506) - Impairment of intangible assets 116,443 - 116,443 - 116,443
- Operating income (loss) (91,765) 27,921 $(92,097) $27,845
(91,765) 28,023 Interest expense 7,173 8,954 7,173 8,954 Other
expense, net 76 273 76 273 Income tax expense (benefit) (32,522)
7,690 (32,522) 7,732 Net income (loss) $(66,492) $11,004 $(66,492)
$11,064 Earnings (loss) per share: Basic $(14.05) $2.19 $(14.05)
$2.20 Diluted $(14.05) $2.19 $(14.05) $2.20 As-Reported Same
Station Pro Forma (1) Twelve Months Twelve Months Twelve Months
Ended Ended Ended December 31, December 31, December 31, 2008 2007
2008 2007 2008 2007 Radio Segment Net operating revenue $121,072
$126,596 $119,717 $126,257 $121,072 $127,555 Station operating
expense 90,540 92,162 89,517 91,899 90,540 93,019 Impairment of
intangible assets 114,979 - 114,979 - 114,979 - Operating income
(loss) $(84,447) $34,434 $(84,779) $34,358 $(84,447) $34,536
As-Reported Same Station Pro Forma (1) Twelve Months Twelve Months
Twelve Months Ended Ended Ended December 31, December 31, December
31, 2008 2007 2008 2007 2008 2007 Television Segment Net operating
revenue $18,884 $17,427 $18,884 $17,427 $18,884 $17,427 Station
operating expense 15,265 14,140 15,265 14,140 15,265 14,140 Gain on
asset exchange (506) - (506) - (506) - Impairment of intangible
assets 1,464 - 1,464 - 1,464 - Operating income $2,661 $3,287
$2,661 $3,287 $2,661 $3,287 As-Reported Same Station Pro Forma (1)
Twelve Months Twelve Months Twelve Months Ended Ended Ended
December 31, December 31, December 31, 2008 2007 2008 2007 2008
2007 Depreciation and amortization Radio Segment $6,446 $6,363
$6,372 $6,299 $6,446 $6,548 Television Segment 2,293 1,619 2,293
1,619 2,293 1,619 Corporate and Other 222 204 222 204 222 204
$8,961 $8,186 $8,887 $8,122 $8,961 $8,371 (1) Pro Forma results
assume all acquisitions and dispositions in 2007 and 2008 occurred
as of January 1, 2007. Saga Communications, Inc. Selected
Supplemental Financial Data Quarterly Proforma Information December
31, 2008 and 2007 (amounts in 000's except per share data)
(Unaudited) Pro Forma (1) Pro Forma (1) Three Months Ended Three
Months Ended March 31, June 30, 2008 2007 2008 2007 Consolidated
Net operating revenue $31,532 $32,193 $37,342 $38,752 Station
operating expense 25,421 26,284 27,246 27,284 Corporate general and
administrative 2,552 2,316 2,574 2,606 Gain on asset exchange - -
(224) - Impairment of intangible assets - - - - Operating income
(loss) 3,559 3,593 7,746 8,862 Interest expense 1,995 2,297 1,876
2,281 Other expense, net 20 35 7 47 Income tax expense (benefit)
634 509 2,403 2,686 Net income (loss) $910 $752 $3,460 $3,848
Earnings (loss) per share: Basic $0.18 $0.15 $0.70 $0.77 Diluted
$0.18 $0.15 $0.70 $0.77 Pro Forma (1) Pro Forma (1) Three Months
Ended Three Months Ended March 31, June 30, 2008 2007 2008 2007
Radio Segment Net operating revenue $27,381 $28,203 $32,629 $34,174
Station operating expense 21,913 22,802 23,398 23,723 Impairment of
intangible assets - - Operating income (loss) $5,468 $5,401 $9,231
$10,451 Pro Forma (1) Pro Forma (1) Three Months Ended Three Months
Ended March 31, June 30, 2008 2007 2008 2007 Television Segment Net
operating revenue $4,151 $3,990 $4,713 $4,578 Station operating
expense 3,508 3,482 3,848 3,561 Gain on asset exchange - - (224) -
Impairment of intangible assets - - - - Operating income (loss)
$643 $508 $1,089 $1,017 Pro Forma (1) Pro Forma (1) Three Months
Ended Three Months Ended March 31, June 30, 2008 2007 2008 2007
Depreciation and amortization by segment Radio Segment $1,562
$1,566 $1,591 $1,599 Television Segment 395 389 605 400 Corporate
and Other 53 47 53 51 $2,010 $2,002 $2,249 $2,050 Pro Forma (1) Pro
Forma (1) Three Months Ended Three Months Ended September 30,
December 31, 2008 2007 2008 2007 Consolidated Net operating revenue
$36,192 $36,500 $34,890 $37,537 Station operating expense 26,588
26,239 26,550 27,352 Corporate general and administrative 2,485
2,272 2,368 2,606 Gain on asset exchange (282) - - - Impairment of
intangible assets - - 116,443 - Operating income (loss) 7,401 7,989
(110,471) 7,579 Interest expense 1,889 2,283 1,413 2,093 Other
expense, net - 60 49 131 Income tax expense (benefit) 2,415 2,315
(37,974) 2,222 Net income (loss) $3,097 $3,331 $(73,959) $3,133
Earnings (loss) per share: Basic $0.65 $0.66 $(17.41) $0.62 Diluted
$0.65 $0.66 $(17.41) $0.62 Pro Forma (1) Pro Forma (1) Three Months
Ended Three Months Ended September 30, December 31, 2008 2007 2008
2007 Radio Segment Net operating revenue $31,306 $32,186 $29,756
$32,992 Station operating expense 22,717 22,756 22,513 23,738
Impairment of intangible assets - - 114,979 - Operating income
(loss) $8,589 $9,430 $(107,736) $9,254 Pro Forma (1) Pro Forma (1)
Three Months Ended Three Months Ended September 30, December 31,
2008 2007 2008 2007 Television Segment Net operating revenue $4,886
$4,314 $5,134 $4,545 Station operating expense 3,871 3,483 4,037
3,614 Gain on asset exchange (282) - - - Impairment of intangible
assets - - 1,464 - Operating income (loss) $1,297 $831 $(367) $931
Pro Forma (1) Pro Forma (1) Three Months Ended Three Months Ended
September 30, December 31, 2008 2007 2008 2007 Depreciation and
amortization by segment Radio Segment $1,618 $1,660 $1,676 $1,723
Television Segment 620 405 672 425 Corporate and Other 54 48 62 58
$2,292 $2,113 $2,410 $2,206 (1) Pro Forma results assume all
acquisitions and dispositions in 2007 and 2008 occurred as of
January 1, 2007. Saga Communications, Inc. Selected Financial Data
Non-GAAP Disclosures For the Three Months Ended December 31, 2008
and 2007 (amounts in 000's) (Unaudited) Reconciliation of
As-Reported (historical) information to Same Station Operating
Income (Loss) Adjustment As-Reported For Acquisitions Same Station
Three Months and Dispositions Three Months Ended Not Included in
Ended December 31, Entire Comparable December 31, 2008 Period 2008
Consolidated Net operating revenue $34,890 $(144) $34,746 Station
operating expense 26,550 (162) 26,388 Corporate general and
administrative 2,368 - 2,368 Impairment of intangible assets
116,443 - 116,443 Operating income (loss) $(110,471) $18 $(110,453)
Adjustment As-Reported For Acquisitions Same Station Three Months
and Dispositions Three Months Ended Not Included in Ended December
31, Entire Comparable December 31, 2008 Period 2008 Radio Segment
Net operating revenue $29,756 $(144) $29,612 Station operating
expense 22,513 (162) 22,351 Impairment of intangible assets 114,979
- 114,979 Operating income (loss) $(107,736) $18 $(107,718)
Adjustment As-Reported For Acquisitions Same Station Three Months
and Dispositions Three Months Ended Not Included in Ended December
31, Entire Comparable December 31, 2008 Period 2008 Television
Segment Net operating revenue $5,134 - $5,134 Station operating
expense 4,037 - 4,037 Impairment of intangible assets 1,464 - 1,464
Operating income (loss) $(367) - $(367) Adjustment As-Reported For
Acquisitions Same Station Three Months and Dispositions Three
Months Ended Not Included in Ended December 31, Entire Comparable
December 31, 2007 Period 2007 Consolidated Net operating revenue
$37,501 $(72) $37,429 Station operating expense 27,316 (72) 27,244
Corporate general and administrative 2,606 - 2,606 Impairment of
intangible assets - - - Operating income (loss) $7,579 - $7,579
Adjustment As-Reported For Acquisitions Same Station Three Months
and Dispositions Three Months Ended Not Included in Ended December
31, Entire Comparable December 31, 2007 Period 2007 Radio Segment
Net operating revenue $32,956 $(72) $32,884 Station operating
expense 23,702 (72) 23,630 Impairment of intangible assets - - -
Operating income (loss) $9,254 - $9,254 Adjustment As-Reported For
Acquisitions Same Station Three Months and Dispositions Three
Months Ended Not Included in Ended December 31, Entire Comparable
December 31, 2007 Period 2007 Television Segment Net operating
revenue $4,545 - $4,545 Station operating expense 3,614 - 3,614
Impairment of intangible assets - - - Operating income (loss) $931
- $931 Saga Communications, Inc. Selected Financial Data Non-GAAP
Disclosures For the Twelve Months Ended December 31, 2008 and 2007
(amounts in 000's) (Unaudited) Reconciliation of As-Reported
(historical) information to Same Station Operating Income (Loss)
Adjustment For Acquisitions As-Reported and Dispositions Same
Station Twelve Months Not Included in Twelve Months Ended Entire
Ended December 31, Comparable December 31, 2008 Period 2008
Consolidated Net operating revenue $139,956 $(1,355) $138,601
Station operating expense 105,805 (1,023) 104,782 Corporate general
and administrative 9,979 - 9,979 Gain on asset exchange (506) -
(506) Impairment of intangible assets 116,443 - 116,443 Operating
income (loss) $(91,765) $(332) $(92,097) Adjustment For
Acquisitions As-Reported and Dispositions Same Station Twelve
Months Not Included in Twelve Months Ended Entire Ended December
31, Comparable December 31, 2008 Period 2008 Radio Segment Net
operating revenue $121,072 $(1,355) $119,717 Station operating
expense 90,540 (1,023) 89,517 Impairment of intangible assets
114,979 - 114,979 Operating income (loss) $(84,447) $(332)
$(84,779) Adjustment For Acquisitions As-Reported and Dispositions
Same Station Twelve Months Not Included in Twelve Months Ended
Entire Ended December 31, Comparable December 31, 2008 Period 2008
Television Segment Net operating revenue $18,884 - $18,884 Station
operating expense 15,265 - 15,265 Gain on asset exchange (506) -
(506) Impairment of intangible assets 1,464 - 1,464 Operating
income $2,661 - $2,661 Reconciliation of As-Reported (historical)
information to Same Station Operating Income (Loss) Adjustment For
Acquisitions As-Reported and Dispositions Same Station Twelve
Months Not Included in Twelve Months Ended Entire Ended December
31, Comparable December 31, 2007 Period 2007 Consolidated Net
operating revenue $144,023 $(339) $143,684 Station operating
expense 106,302 (263) 106,039 Corporate general and administrative
9,800 - 9,800 Gain on asset exchange - - - Impairment of intangible
assets - - - Operating income (loss) $27,921 $(76) $27,845
Adjustment For Acquisitions As-Reported and Dispositions Same
Station Twelve Months Not Included in Twelve Months Ended Entire
Ended December 31, Comparable December 31, 2007 Period 2007 Radio
Segment Net operating revenue $126,596 $(339) $126,257 Station
operating expense 92,162 (263) 91,899 Other operating income - - -
Impairment of intangible assets - - - Operating income (loss)
$34,434 $(76) $34,358 Adjustment For Acquisitions As-Reported and
Dispositions Same Station Twelve Months Not Included in Twelve
Months Ended Entire Ended December 31, Comparable December 31, 2007
Period 2007 Television Segment Net operating revenue $17,427 -
$17,427 Station operating expense 14,140 - 14,140 Gain on asset
exchange - - - Impairment of intangible assets - - - Operating
income $3,287 - $3,287 Saga Communications, Inc. Selected Financial
Data Non-GAAP Disclosures For the Twelve Months Ended December 31,
2008 (amounts in 000's except per share data) (Unaudited)
Reconciliation of As-Reported Net Loss to Net Income Excluding
Impairment Charge Twelve Months Ended December 31, 2008 Net loss
$(66,492) Impairment of intangible assets 116,443 Income tax
benefit (32,522) Income before income tax, excluding impairment
charge 17,429 Income tax expense 7,566 Net income, excluding
impairment charge $9,863 Weighted average common shares and common
shares equivalent, diluted 4,734 Dilutive securities: Stock options
3 Weighted average common shares and common shares equivalent,
diluted 4,737 Earnings per share: Diluted $2.08 DATASOURCE: Saga
Communications, Inc. CONTACT: Samuel D. Bush, Saga Communications,
Inc., +1-313-886-7070 Web Site: http://www.sagacommunications.com/
Copyright