Saga Communications, Inc. Reports 4th Quarter and Year End 2009 Results
GROSSE POINTE FARMS, Mich., March 4 /PRNewswire-FirstCall/ -- Saga Communications, Inc. (NYSE Amex: SGA) today reported free cash flow increased 1.7% to $19.2 million for the year. Net operating revenue for the year ended December 31, 2009 decreased 13.7% over the comparable period in 2008 to $120.8 million. Station operating expense decreased 10.6% to $94.7 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 put in place. This helped to reduce the impact that the decline in net operating revenue had on our operating results. The Company's net loss was $2.6 million (-$.61 per fully diluted share) for the year ended December 31, 2009 compared to a net loss of $66.5 million (-$14.05 per fully diluted share) for the same period last year. Results for the full year of 2009 include a pre-tax non-cash impairment charge of $17.3 million related to the Company's review of its indefinite-lived intangible assets. The charge in 2008 was $116.4 million. Without the non-cash impairment charge, the Company would have had a net income of $7.9 million ($1.88 per fully diluted share) for the year compared to $9.9 million for the same period last year ($2.08 per fully diluted share).
For the quarter ended December 31, 2009 free cash flow increased 11.8% to $6.6 million. Net operating revenue decreased 8.9% from the comparable period in 2008 to $31.8 million. Station operating expense decreased 10.2% to $23.9 million (station operating expense includes depreciation and amortization attributable to the stations). The Company's net loss was $7.4 million for the quarter ended December 31, 2009 compared to a net loss of $74.0 million for the same period last year. Results for the fourth quarter of 2009 include a pre-tax non-cash impairment charge of $17.3 million related to the Company's review of its indefinite-lived intangible assets. The charge for the quarter in 2008 was $116.4 million.
The Company has maintained a solid balance sheet given the current economic volatility, with $12.9 million in cash balances as of December 31, 2009. As of December 31, 2009, the Company's trailing 12 month leverage ratio calculated as a multiple of EBITDA was 4.3 times. Netting cash against outstanding debt, the ratio would be 3.9 times. Subsequent to the end of the year, the Company reduced its total debt outstanding to $116 million.
Capital expenditures in the fourth quarter of 2009 were $0.8 million. For the 2009 fiscal year total capital expenditures were $4.0 million. This compares to $2.0 million and $7.1 million for the same respective periods last year. The Company currently expects to spend approximately $4.5 – $5.0 million for capital expenditures during 2010.
All share and per share information reflects the Company's January 28, 2009 1-for-4 reverse stock split.
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, free cash flow, net income excluding impairment charge, 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. 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 4th Quarter and Year End 2009 conference call will be on Thursday, March 4, 2010 at 2:00 p.m. EST. The dial-in number for domestic calls is (612) 288-0337. The call can be replayed for 7 days by calling domestically (800) 475-6701 and referring to access code 143180.
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. EST on March 4, 2010 to [email protected]. 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 Twelve Months Ended
December 31, 2009 and 2008
(amounts in 000's except per share data)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------ --------------------
2009 2008 2009 2008
------------------ --------------------
Operating Results
Net operating revenue $31,784 $34,890 $120,798 $139,956
Station operating
expense 23,856 26,550 94,647 105,805
Corporate general and
administrative 1,813 2,368 7,944 9,979
Gain on asset exchange (495) - (495) (506)
Impairment of intangible
assets 17,286 116,443 17,286 116,443
------------------- -----------------
Operating income (loss) (10,676) (110,471) 1,416 (91,765)
Interest expense 1,359 1,413 4,948 7,173
Other expense, net 199 49 210 76
------------------- ------------------
Loss before income tax (12,234) (111,933) (3,742) (99,014)
Income tax benefit (4,871) (37,974) (1,161) (32,522)
------------------- -------------------
Net loss $(7,363) $(73,959) $(2,581) $(66,492)
=================== ===================
Loss per share
Basic $(1.74) $(17.41) $(0.61) $(14.05)
================== ==================
Diluted $(1.74) $(17.41) $(0.61) $(14.05)
================== ==================
Weighted average
common shares 4,227 4,249 4,207 4,734
Weighted average
common shares and
common shares equivalents 4,227 4,249 4,207 4,734
Free Cash Flow
Net loss $(7,363) $(73,959) $(2,581) $(66,492)
Plus: Depreciation and
amortization:
Station 2,057 2,348 8,408 8,739
Corporate 55 62 221 222
Deferred tax
benefit (4,711) (37,445) (1,145) (33,879)
Non-cash
compensation 348 374 1,366 1,433
Gain on asset
exchange (495) - (495) (506)
Impairment of
intangible assets 17,286 116,443 17,286 116,443
Other expense, net 199 49 210 76
Less: Capital
expenditures (804) (1,993) (4,041) (7,127)
----------------- ------------------
Free cash flow $6,572 $5,879 $19,229 $18,909
================= ==================
Balance Sheet Data
Working capital $7,753 $20,438
Net fixed assets 69,216 73,383
Net intangible Assets
and other assets 96,241 113,276
Total assets 202,351 221,460
Long-term Debt (including
current portion of
$17,078 and $1,061,
respectively) 121,078 135,411
Stockholders' equity 64,093 65,097
Saga Communications, Inc.
Selected Supplemental Financial Data
For the Three Months Ended
December 31, 2009 and 2008
(amounts in 000's except per share data)
(Unaudited)
As-Reported Same Station
Three Months Ended Three Months Ended
December 31, December 31,
2009 2008 2009 2008
------------------- ------------------
Consolidated
Net operating revenue $31,784 $34,890 $31,394 $34,883
Station operating
expense 23,856 26,550 23,690 26,527
Corporate general and
administrative 1,813 2,368 1,813 2,368
Gain on asset exchange (495) - (495) -
Impairment of intangible
assets 17,286 116,443 17,286 116,443
-------------------- ---------------------
Operating loss (10,676) (110,471) $(10,900) $(110,455)
Interest expense 1,359 1,413
Other expense, net 199 49
Income tax benefit (4,871) (37,974)
--------------------
Net loss $(7,363) $(73,959)
====================
Loss per share:
Basic $(1.74) $(17.41)
===================
Diluted $(1.74) $(17.41)
===================
As-Reported Same Station
Three Months Ended Three Months Ended
December 31, December 31,
2009 2008 2009 2008
------------------- -------------------
Radio Segment
Net operating revenue $27,382 $29,756 $26,992 $29,749
Station operating
expense 20,325 22,513 20,159 22,490
Impairment of intangible
assets 16,206 114,979 16,206 114,979
-------------------- --------------------
Operating loss $(9,149) $(107,736) $(9,373) $(107,720)
==================== ====================
As-Reported Same Station
Three Months Ended Three Months Ended
December 31, December 31,
2009 2008 2009 2008
------------------ ------------------
Television Segment
Net operating revenue $4,402 $5,134 $4,402 $5,134
Station operating expense 3,531 4,037 3,531 4,037
Gain on asset exchange (495) - (495) -
Impairment of intangible
assets 1,080 1,464 1,080 1,464
----------------- -----------------
Operating income (loss) $286 $(367) $286 $(367)
================= =================
As-Reported Same Station
Three Months Ended Three Months Ended
December 31, December 31,
2009 2008 2009 2008
------------------ ------------------
Depreciation and
amortization by segment
Radio Segment $1,598 $1,676 $1,598 $1,676
Television Segment 459 672 459 672
Corporate and Other 55 62 55 62
------------------ ------------------
$2,112 $2,410 $2,112 $2,410
================== ==================
Saga Communications, Inc.
Selected Supplemental Financial Data
For the Twelve Months Ended
December 31, 2009 and 2008
(amounts in 000's except per share data)
(Unaudited)
As-Reported Same Station
Twelve Months Ended Twelve Months Ended
December 31, December 31,
2009 2008 2009 2008
-------------------- -------------------
Consolidated
Net operating revenue $120,798 $139,956 $119,360 $139,934
Station operating expense 94,647 105,805 93,950 105,724
Corporate general and
administrative 7,944 9,979 7,944 9,979
Gain on asset exchange (495) (506) (495) (506)
Impairment of intangible
assets 17,286 116,443 17,286 116,443
-------------------- -----------------
Operating income (loss) 1,416 (91,765) $675 $(91,706)
Interest expense 4,948 7,173
Other expense, net 210 76
Income tax benefit (1,161) (32,522)
------------------
Net loss $(2,581) $(66,492)
===================
Loss per share:
Basic $(0.61) $(14.05)
==================
Diluted $(0.61) $(14.05)
==================
As-Reported Same Station
Twelve Months Ended Twelve Months Ended
December 31, December 31,
2009 2008 2009 2008
-------------------- -------------------
Radio Segment
Net operating revenue $104,601 $121,072 $103,163 $121,050
Station operating expense 80,382 90,540 79,685 90,459
Impairment of intangible
assets 16,206 114,979 16,206 114,979
----------------- -----------------
Operating income (loss) $8,013 $(84,447) $7,272 $(84,388)
================= =================
As-Reported Same Station
Twelve Months Ended Twelve Months Ended
December 31, December 31,
2009 2008 2009 2008
------------------- -------------------
Television Segment
Net operating revenue $16,197 $18,884 $16,197 $18,884
Station operating expense 14,265 15,265 14,265 15,265
Gain on asset exchange (495) (506) (495) (506)
Impairment of intangible
assets 1,080 1,464 1,080 1,464
----------------- -----------------
Operating income $1,347 $2,661 $1,347 $2,661
================= =================
As-Reported Same Station
Twelve Months Ended Twelve Months Ended
December 31, December 31,
2009 2008 2009 2008
------------------- -------------------
Depreciation and amortization
by segment
Radio Segment $6,166 $6,446 $6,143 $6,446
Television Segment 2,242 2,293 2,242 2,293
Corporate and Other 221 222 221 222
----------------- -----------------
$8,629 $8,961 $8,606 $8,961
================= =================
Saga Communications, Inc.
Selected Financial Data Non-GAAP Disclosures
For the Three Months Ended
December 31, 2009 and 2008
(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,
2009 Period 2009
------------------------------------------------
Consolidated
Net operating revenue $31,784 $(390) $31,394
Station operating expense 23,856 (166) 23,690
Corporate general and
administrative 1,813 - 1,813
Gain on asset exchange (495) - (495)
Impairment of intangible
assets 17,286 - 17,286
--------- ------ ---------
Operating loss $(10,676) $(224) $(10,900)
========= ====== =========
Adjustment
As-Reported For Acquisitions Same Station
Three Months and Dispositions Three Months
Ended Not Included in Ended
December 31, Entire Comparable December 31,
2009 Period 2009
------------------------------------------------
Radio Segment
Net operating revenue $27,382 $(390) $26,992
Station operating expense 20,325 (166) 20,159
Impairment of intangible
assets 16,206 - 16,206
-------- ------ --------
Operating loss $(9,149) $(224) $(9,373)
======== ====== ========
Adjustment
As-Reported For Acquisitions Same Station
Three Months and Dispositions Three Months
Ended Not Included in Ended
December 31, Entire Comparable December 31,
2009 Period 2009
------------------------------------------------
Television Segment
Net operating revenue $4,402 - $4,402
Station operating expense 3,531 - 3,531
Gain on asset exchange (495) - (495)
Impairment of intangible
assets 1,080 - 1,080
----- --- -----
Operating income (loss) $286 - $286
===== === =====
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 $(7) $34,883
Station operating expense 26,550 (23) 26,527
Corporate general and
administrative 2,368 - 2,368
Gain on asset exchange - - -
Impairment of intangible
assets 116,443 - 116,443
---------- --- ----------
Operating loss $(110,471) $16 $(110,455)
========== === ==========
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 $(7) $29,749
Station operating expense 22,513 (23) 22,490
Impairment of intangible
assets 114,979 - 114,979
---------- --- ----------
Operating loss $(107,736) $16 $(107,720)
========== === ==========
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
Gain on asset exchange - - -
Impairment of intangible
assets 1,464 - 1,464
------ --- ------
Operating income (loss) $(367) - $(367)
====== === ======
Saga Communications, Inc.
Selected Financial Data Non-GAAP Disclosures
For the Twelve Months Ended
December 31, 2009 and 2008
(amounts in 000's)
(Unaudited)
Reconciliation of As-Reported (historical) information to Same
Station Operating Income (Loss)
--------------------------------------------------------------
Adjustment
As-Reported For Acquisitions Same Station
Twelve Months and Dispositions Twelve Months
Ended Not Included in Ended
December 31, Entire Comparable December 31,
2009 Period 2009
------------------------------------------------
Consolidated
Net operating revenue $120,798 $(1,438) $119,360
Station operating expense 94,647 (697) 93,950
Corporate general and
administrative 7,944 - 7,944
Gain on asset exchange (495) - (495)
Impairment of intangible
assets 17,286 - 17,286
------ ------ ------
Operating income (loss) $1,416 $(741) $675
====== ====== ====
Adjustment
As-Reported For Acquisitions Same Station
Twelve Months and Dispositions Twelve Months
Ended Not Included in Ended
December 31, Entire Comparable December 31,
2009 Period 2009
-------------------------------------------------
Radio Segment
Net operating revenue $104,601 $(1,438) $103,163
Station operating expense 80,382 (697) 79,685
Impairment of intangible
assets 16,206 - 16,206
------ --- ------
Operating income (loss) $8,013 $(741) $7,272
====== ====== ======
Adjustment
As-Reported For Acquisitions Same Station
Twelve Months and Dispositions Twelve Months
Ended Not Included in Ended
December 31, Entire Comparable December 31,
2009 Period 2009
-------------------------------------------------
Television Segment
Net operating revenue $16,197 - $16,197
Station operating expense 14,265 - 14,265
Gain on asset exchange (495) - (495)
Impairment of intangible
assets 1,080 - 1,080
------ --- ------
Operating income $1,347 - $1,347
====== === ======
Adjustment
As-Reported For Acquisitions Same Station
Twelve Months and Dispositions Twelve Months
Ended Not Included in Ended
December 31, Entire Comparable December 31,
2008 Period 2008
-------------------------------------------------
Consolidated
Net operating revenue $139,956 $(22) $139,934
Station operating expense 105,805 (81) 105,724
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) $59 $(91,706)
========= === =========
Adjustment
As-Reported For Acquisitions Same Station
Twelve Months and Dispositions Twelve Months
Ended Not Included in Ended
December 31, Entire Comparable December 31,
2008 Period 2008
-------------------------------------------------
Radio Segment
Net operating revenue $121,072 $(22) $121,050
Station operating expense 90,540 (81) 90,459
Impairment of intangible
assets 114,979 - 114,979
--------- --- ---------
Operating income (loss) $(84,447) $59 $(84,388)
========= === =========
Adjustment
As-Reported For Acquisitions Same Station
Twelve Months and Dispositions Twelve Months
Ended Not Included in Ended
December 31, Entire 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
====== === ======
Saga Communications, Inc.
Selected Financial Data Non-GAAP Disclosures
For the Three and Twelve Months Ended
December 31, 2009 and 2008
(amounts in 000's except per share data)
(Unaudited)
Reconciliation of As-Reported Net Loss to Net Income Excluding
Impairment Charge
--------------------------------------------------------------
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------ -------------------
2009 2008 2009 2008
------------------- -------------------
Net loss $(7,363) $(73,959) $(2,581) $(66,492)
Impairment of intangible
assets 17,286 116,443 17,286 116,443
------------------- -------------------
Operating income, Excluding
impairment charge 9,923 42,484 14,705 49,951
Income tax benefit (4,871) (37,974) (1,161) (32,522)
------------------ ------------------
Income before income tax,
excluding impairment charge 5,052 4,510 13,544 17,429
Income tax expense 1,913 2,114 5,623 7,566
---------------- -----------------
Net income, excluding
impairment charge $3,139 $2,396 $7,921 $9,863
================= =================
Weighted average common
shares and common shares
equivalent, diluted 4,227 4,249 4,207 4,734
Dilutive securities: Stock
options - - 1 3
---------------- ----------------
Weighted average common
shares and common shares
equivalent, diluted 4,227 4,249 4,208 4,737
================ ================
Earnings per share:
Diluted $0.74 $0.56 $1.88 $2.08
================ ================
Saga Communications, Inc.
Selected Supplemental Financial Data
Trailing Twelve Month Consolidated EBITDA and Leverage Ratio
As of December 31, 2009
(amounts in 000's, except ratios)
(Unaudited)
Trailing
Twelve Months
Ended
December 31,
2009
------------
Trailing Twelve Month Consolidated EBITDA
Net income $(2,581)
Less: Loss on sale of assets (210)
Gain on exchange of assets 495
Impairment of intangible assets (17,286)
Interest income 9
Net barter transactions 187
--------
Total exclusions (16,805)
--------
Consolidated Adjusted Net Income 14,224
Plus: Interest expense 4,948
Income tax benefit (1,161)
Depreciation & amortization expense 8,629
Amortization of television syndicated
programming contracts 706
Non-cash stock based compensation expense 1,366
Less: Cash television programming payments (725)
-------
Trailing twelve month consolidated EBITDA $27,987
=======
December 31,
2009
------------
Total long-term debt, including current maturities $121,078
Divided by trailing twelve month consolidated EBITDA 27,987
--------
Leverage ratio 4.3
========
Total long-term debt, including current maturities $121,078
Less: Cash and cash equivalents as of
December 31, 2009 (12,899)
--------
Long-term debt, including current maturities
less cash and cash equivalents as of
December 31, 2009 108,179
Divided by trailing twelve month consolidated EBITDA 27,987
-------
Leverage ratio 3.9
=======
SOURCE Saga Communications, Inc.
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