GROSSE POINTE FARMS, Mich., Nov. 9 /PRNewswire-FirstCall/ -- Saga
Communications, Inc. (NYSE Amex: SGA) today reported that 3rd
quarter 2009 free cash flow increased 5.1% to $5.8 million compared
to $5.5 million for the same period last year. Net operating
revenue decreased 13.7% from the comparable period in 2008 to $31.3
million. Operating income was $5.8 million. Net income was $2.5
million ($.58 per fully diluted share) for the quarter ended
September 30, 2009 compared to $3.1 million ($.65 per fully diluted
share) for the comparable period in 2008. For the same period,
station operating expense decreased $3.0 million to $23.6 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
14.7% to $30.9 million, operating income was $5.6 million and
station operating expense decreased $3.2 million to $23.4 million.
For the nine month period ended September 30, 2009, free cash flow
decreased $373 thousand to $12.7 million. Net operating revenue
decreased 15.3% from the comparable period in 2008 to $89.0 million
and operating income was $12.1 million. Net income was $4.8 million
($1.14 per fully diluted share) compared to $7.5 million ($1.52 per
fully diluted share) for the comparable period in 2008. For the
same period, station operating expense decreased $8.5 million to
$70.8 million (station operating expense includes depreciation and
amortization attributable to the stations). On a same station basis
for the nine months, net operating revenue decreased 16.2% to $88.1
million, operating income was $11.6 million and station operating
expense decreased $8.9 million to $70.3 million. All share and per
share information has been adjusted for the Company's January 28,
2009 1-for-4 reverse stock split. The Company has maintained a
solid balance sheet even given the current economic volatility with
$16.7 million in cash balances as of September 30, 2009. Bank debt
outstanding was $130.6 million. Subsequent to the end of the
quarter the Company paid down $5.0 million of the outstanding bank
debt. Adjusted for this pay down the companies trailing 12 month
leverage ratio calculated as a multiple of EBITDA and based on
actual debt outstanding was 4.6 times. Netting cash against
outstanding debt the ratio would be 4.0 times. Capital expenditures
in the third quarter of 2009 were $663 thousand. For the nine
months, capital expenditures were $3.2 million. Currently we expect
capital expenditures for the year to be approximately $4.0 - $4.2
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 third quarter
2009 results conference call will be on Monday, November 9, 2009 at
2:00 PM EST. The dial in number for domestic and international
calls is 612/234-9960. The call can be replayed for 7 days by
calling domestically 800/475-6701 or internationally 320/365-3844
and referring to access code 115331. 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 EST on
November 9, 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 the volatility of the global economy, Saga's debt outstanding,
debt service requirements and debt covenants along 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
herein. Saga Communications, Inc. Selected Consolidated Financial
Data For The Three and Nine Months Ended September 30, 2009 and
2008 (amounts in 000's except per share data) (Unaudited) Three
Months Nine Months Ended Ended September 30, September 30,
--------------- --------------- 2009 2008 2009 2008 ---- ---- ----
---- Operating Results Net operating revenue $31,253 $36,192
$89,014 $105,066 Station operating expense 23,556 26,588 70,791
79,255 Corporate general and administrative 1,906 2,485 6,131 7,611
Gain on asset exchange - (282) - (506) Operating income 5,791 7,401
12,092 18,706 Interest expense 1,386 1,889 3,589 5,760 Other
expense (income), net 43 - 11 27 --- --- --- --- Income before
income tax 4,362 5,512 8,492 12,919 Income tax expense 1,892 2,415
3,710 5,452 ----- ----- ----- ----- Net income $2,470 $3,097 $4,782
$7,467 ====== ====== ====== ====== Earnings per share Basic $0.58
$0.65 $1.14 $1.52 ===== ===== ===== ===== Diluted $0.58 $0.65 $1.14
$1.52 ===== ===== ===== ===== Weighted average common shares 4,227
4,735 4,202 4,898 Weighted average common shares and common shares
equivalents 4,227 4,738 4,203 4,902 Free Cash Flow Net income
$2,470 $3,097 $4,782 $7,467 Plus: Depreciation and amortization:
Station 1,974 2,238 6,351 6,391 Corporate 57 54 166 160 Deferred
tax provision 1,528 1,640 3,566 3,566 Non-cash compensation 348 338
1,018 1,059 Gain on asset exchange - (282) - (506) Other expense
(income), net 43 - 11 27 Less: Capital expenditures (663) (1,609)
(3,237) (5,134) ---- ------ ------ ------ Free cash flow $5,757
$5,476 $12,657 $13,030 ====== ====== ======= ======= Balance Sheet
Data Working capital $7,428 $19,311 Net fixed assets 70,204 73,889
Net intangible assets and other assets 113,635 230,484 Total assets
224,740 339,815 Long-term debt (including current portion of
$20,578 and $1,061, respectively) 130,578 134,411 Stockholders'
equity 71,107 146,066 Saga Communications, Inc. Selected
Supplemental Financial Data For the Three Months Ended September
30, 2009 and 2008 (amounts in 000's except per share data)
(Unaudited) As-Reported Same Station Three Months Three Months
Ended Ended September 30, September 30, 2009 2008 2009 2008 ----
---- ---- ---- Consolidated Net operating revenue $31,253 $36,192
$30,865 $36,192 Station operating expense 23,556 26,588 23,403
26,588 Corporate general and administrative 1,906 2,485 1,906 2,485
Gain on asset exchange - (282) - (282) --- ---- --- ---- Operating
income 5,791 7,401 $5,556 $7,401 Interest expense 1,386 1,889 Other
expense (income), net 43 - Income tax expense 1,892 2,415 -----
----- Net income $2,470 $3,097 ====== ====== Earnings per share:
Basic $0.58 $0.65 ===== ===== Diluted $0.58 $0.65 ===== =====
As-Reported Same Station Three Months Three Months Ended Ended
September 30, September 30, 2009 2008 2009 2008 ---- ---- ---- ----
Radio Segment Net operating revenue $26,992 $31,306 $26,604 $31,306
Station operating expense 20,046 22,717 19,893 22,717 ------ ------
------ ------ Operating income $6,946 $8,589 $6,711 $8,589 ======
====== ====== ====== As-Reported Same Station Three Months Three
Months Ended Ended September 30, September 30, 2009 2008 2009 2008
---- ---- ---- ---- Television Segment Net operating revenue $4,261
$4,886 $4,261 $4,886 Station operating expense 3,510 3,871 3,510
3,871 Gain on asset exchange - (282) - (282) --- ---- --- ----
Operating income $751 $1,297 $751 $1,297 ==== ====== ==== ======
As-Reported Same Station Three Months Three Months Ended Ended
September 30, September 30, 2009 2008 2009 2008 ---- ---- ---- ----
Depreciation and amortization by segment Radio Segment $1,521
$1,618 $1,515 $1,618 Television Segment 453 620 453 620 Corporate
and Other 57 54 57 54 --- --- --- --- $2,031 $2,292 $2,025 $2,292
====== ====== ====== ====== Saga Communications, Inc. Selected
Supplemental Financial Data For the Nine Months Ended September 30,
2009 and 2008 (amounts in 000's except per share data) (Unaudited)
As-Reported Same Station Nine Months Ended Nine Months Ended
September 30, September 30, 2009 2008 2009 2008 ---- ---- ---- ----
Consolidated Net operating revenue $89,014 $105,066 $88,054
$105,066 Station operating expense 70,791 79,255 70,317 79,255
Corporate general and administrative 6,131 7,611 6,131 7,611 Gain
on asset exchange - (506) - (506) --- ---- --- ---- Operating
income 12,092 18,706 $11,606 $18,706 Interest expense 3,589 5,760
Other expense (income), net 11 27 Income tax expense 3,710 5,452
----- ----- Net income $4,782 $7,467 ====== ====== Earnings per
share: Basic $1.14 $1.52 ===== ===== Diluted $1.14 $1.52 =====
===== As-Reported Same Station Nine Months Ended Nine Months Ended
September 30, September 30, 2009 2008 2009 2008 ---- ---- ---- ----
Radio Segment Net operating revenue $77,219 $91,316 $76,259 $91,316
Station operating expense 60,057 68,028 59,583 68,028 ------ ------
------ ------ Operating income $17,162 $23,288 $16,676 $23,288
======= ======= ======= ======= As-Reported Same Station Nine
Months Ended Nine Months Ended September 30, September 30, 2009
2008 2009 2008 ---- ---- ---- ---- Television Segment Net operating
revenue $11,795 $13,750 $11,795 $13,750 Station operating expense
10,734 11,227 10,734 11,227 Gain on asset exchange - (506) - (506)
--- ---- --- ---- Operating income $1,061 $3,029 $1,061 $3,029
====== ====== ====== ====== As-Reported Same Station Nine Months
Ended Nine Months Ended September 30, September 30, 2009 2008 2009
2008 ---- ---- ---- ---- Depreciation and amortization by segment
Radio Segment $4,568 $4,771 $4,549 $4,771 Television Segment 1,783
1,620 1,783 1,620 Corporate and Other 166 160 166 160 --- --- ---
--- $6,517 $6,551 $6,498 $6,551 ====== ====== ====== ====== Saga
Communications, Inc. Selected Financial Data Non-GAAP Disclosures
For the Three Months Ended September 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 September
30, Entire Comparable September 30, 2009 Period 2009 -------------
----------------- ------------- Consolidated Net operating revenue
$31,253 $(388) $30,865 Station operating expense 23,556 (153)
23,403 Corporate general and administrative 1,906 - 1,906 Gain on
asset exchange - - - --- --- --- Operating income $5,791 $(235)
$5,556 ====== ===== ====== Adjustment As-Reported For Acquisitions
Same Station Three Months and Dispositions Three Months Ended Not
Included in Ended September 30, Entire Comparable September 30,
2008 Period 2008 ------------- ----------------- -------------
Consolidated Net operating revenue $36,192 - $36,192 Station
operating expense 26,588 - 26,588 Corporate general and
administrative 2,485 - 2,485 Gain on asset exchange (282) - (282)
---- --- ---- Operating income $7,401 - $7,401 ====== === ======
Adjustment As-Reported For Acquisitions Same Station Three Months
and Dispositions Three Months Ended Not Included in Ended September
30, Entire Comparable September 30, 2009 Period 2009 -------------
----------------- ------------- Radio Segment Net operating revenue
$26,992 $(388) $26,604 Station operating expense 20,046 (153)
19,893 ------ ---- ------ Operating income $6,946 $(235) $6,711
====== ===== ====== Adjustment As-Reported For Acquisitions Same
Station Three Months and Dispositions Three Months Ended Not
Included in Ended September 30, Entire Comparable September 30,
2008 Period 2008 ------------- ----------------- -------------
Radio Segment Net operating revenue $31,306 - $31,306 Station
operating expense 22,717 - 22,717 ------ --- ------ Operating
income $8,589 - $8,589 ====== === ====== Adjustment As-Reported For
Acquisitions Same Station Three Months and Dispositions Three
Months Ended Not Included in Ended September 30, Entire Comparable
September 30, 2009 Period 2009 ------------- -----------------
------------- Television Segment Net operating revenue $4,261 -
$4,261 Station operating expense 3,510 - 3,510 Gain on asset
exchange - - - ---- --- ---- Operating income $751 - $751 ==== ===
==== Adjustment As-Reported For Acquisitions Same Station Three
Months and Dispositions Three Months Ended Not Included in Ended
September 30, Entire Comparable September 30, 2008 Period 2008
------------- ----------------- ------------- Television Segment
Net operating revenue $4,886 - $4,886 Station operating expense
3,871 - 3,871 Gain on asset exchange (282) - (282) ---- --- ----
Operating income $1,297 - $1,297 ====== === ====== Saga
Communications, Inc. Selected Financial Data Non-GAAP Disclosures
For the Nine Months Ended September 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 Nine Months
and Dispositions Nine Months Ended Not Included in Ended September
30, Entire Comparable September 30, 2009 Period 2009 -------------
----------------- ------------- Consolidated Net operating revenue
$89,014 $(960) $88,054 Station operating expense 70,791 (474)
70,317 Corporate general and administrative 6,131 - 6,131 Gain on
asset exchange - - - --- --- --- Operating income $12,092 $(486)
$11,606 ======= ===== ======= Adjustment As-Reported For
Acquisitions Same Station Nine Months and Dispositions Nine Months
Ended Not Included in Ended September 30, Entire Comparable
September 30, 2008 Period 2008 ------------- -----------------
------------- Consolidated Net operating revenue $105,066 -
$105,066 Station operating expense 79,255 - 79,255 Corporate
general and administrative 7,611 - 7,611 Gain on asset exchange
(506) - (506) ---- --- ---- Operating income $18,706 - $18,706
======= === ======= Adjustment As-Reported For Acquisitions Same
Station Nine Months and Dispositions Nine Months Ended Not Included
in Ended September 30, Entire Comparable September 30, 2009 Period
2009 ------------- ----------------- ------------- Radio Segment
Net operating revenue $77,219 $(960) $76,259 Station operating
expense 60,057 (474) 59,583 ------ ---- ------ Operating income
$17,162 $(486) $16,676 ======= ===== ======= Adjustment As-Reported
For Acquisitions Same Station Nine Months and Dispositions Nine
Months Ended Not Included in Ended September 30, Entire Comparable
September 30, 2008 Period 2008 ------------- -----------------
------------- Radio Segment Net operating revenue $91,316 - $91,316
Station operating expense 68,028 - 68,028 ------ --- ------
Operating income $23,288 - $23,288 ======= === ======= Adjustment
As-Reported For Acquisitions Same Station Nine Months and
Dispositions Nine Months Ended Not Included in Ended September 30,
Entire Comparable September 30, 2009 Period 2009 -------------
----------------- ------------- Television Segment Net operating
revenue $11,795 - $11,795 Station operating expense 10,734 - 10,734
Gain on asset exchange - - - --- --- --- Operating income $1,061 -
$1,061 ====== === ====== Adjustment As-Reported For Acquisitions
Same Station Nine Months and Dispositions Nine Months Ended Not
Included in Ended September 30, Entire Comparable September 30,
2008 Period 2008 ------------- ----------------- -------------
Television Segment Net operating revenue $13,750 - $13,750 Station
operating expense 11,227 - 11,227 Gain on asset exchange (506) -
(506) ---- --- ---- Operating income $3,029 - $3,029 ====== ===
====== Saga Communications, Inc. Selected Supplemental Financial
Data Trailing Twelve Month Consolidated EBITDA and Leverage Ratio
As of September 30, 2009 (amounts in 000's, except ratios)
(Unaudited) Less: Plus: Trailing Twelve Months Nine Months Nine
Months Twelve Months Ended Ended Ended Ended December 31, September
30, September 30, September 30, 2008 2008 2009 2009 ---- ---- ----
---- Trailing Twelve Month Consolidated EBITDA Net income $(66,492)
$7,467 $4,782 $(69,177) Less: Loss on sale of assets (76) (27) (47)
(96) Gain on exchange of assets 506 506 - - Impairment of
intangible assets (116,443) - - (116,443) Interest income 136 111 5
30 Net barter transactions (24) 35 247 188 Total exclusions
(115,901) 625 205 (116,321) -------- --- --- -------- Consolidated
Adjusted Net Income 49,409 6,842 4,577 47,144 Plus: Interest
expense 7,173 5,760 3,589 5,002 Income tax (benefit) expense
(32,522) 5,452 3,710 (34,264) Depreciation & amortization
expense 8,963 6,551 6,517 8,929 Amortization of television
syndicated programming contracts 673 488 530 715 Non-cash stock
based compensation expense 1,433 1,059 1,018 1,392 Less: Cash
television programming payments 663 482 549 730 ------- -------
------- ------- Trailing twelve month consolidated EBITDA $34,466
$25,670 $19,392 $28,188 ======= ======= ======= ======= September
30, 2009 ---- Total long-term debt, including current maturities
$130,578 Divided by trailing twelve month consolidated EBITDA
28,188 ------ Leverage ratio 4.6 === Total long-term debt,
including current maturities $130,578 Less: Cash and cash
equivalents as of September 30, 2009 (16,649) ------- Long-term
debt, including current maturities less cash and cash equivalents
as of September 30, 2009 113,929 Divided by trailing twelve month
consolidated EBITDA 28,188 ------ Leverage ratio 4.0 ===
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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