GROSSE POINTE FARMS, Mich., March 10 /PRNewswire-FirstCall/ -- Saga
Communications, Inc. (NYSE Alternext US: 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) and operating income (excluding
non-cash impairment charge) decreased 11.6% to $24.7 million. On a
same station basis for the year, net operating revenue decreased
3.5% to $138.6 million, operating income (excluding 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) and operating income (excluding non-cash impairment
charge) decreased 21.2% to $6.0 million. On a same station basis
for the quarter, net operating revenue decreased 7.2% to $34.7
million, operating income (excluding non-cash impairment charge)
decreased 21.0% to $6.0 million and station operating expense
decreased 3.1% to $26.4 million. The Company has not finalized the
fourth quarter non-cash impairment charge and its related tax
impact (which could be significant) and therefore is not releasing
net income (loss) or earnings (loss) per basic and diluted share at
this time. The Company has also not included the non-cash
impairment charge and its related tax impact in the attached
unaudited financial information. Based on a combination of factors,
including the current economic environment, the Company's operating
results and current market valuation, the Company has concluded
that it is likely that the value of certain intangible assets will
be reduced below their current carrying value. The Company is
continuing to conduct their required impairment analysis to
determine the amount of the non-cash impairment charge. As a result
of its ongoing impairment analysis, the Company expects to be
filing a Notification of Late Filing in accordance with Rule 12b-25
of the Securities Exchange Act of 1934, as amended, with the
Securities and Exchange Commission (the "SEC") for its Annual
Report on Form 10-K for the fiscal year ended December 31, 2008.
The Company will file its Annual Report on Form 10-K, which will
include the results of finalizing the non-cash impairment charge
and its related tax impact, with the SEC on March 31, 2009. This
press release supersedes the Company's previously announced plans
for issuing a press release and holding a conference call on March
11, 2009. 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. 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. The share
repurchase numbers have been adjusted for the Company's January 29,
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) - Operating income before impairment charge
5,972 7,579 24,678 27,921 Interest expense 1,413 2,093 7,173 8,954
Other expense, net 49 131 76 273 -- --- -- --- Income before income
tax and impairment charge $4,510 $5,355 $17,429 $18,694 ======
====== ======= ======= 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 Income before
income tax and impairment charge $4,510 $5,355 $17,429 $18,694
Plus: Depreciation and amortization: Station 2,348 2,135 8,739
7,982 Corporate 62 58 222 204 Non-cash compensation 374 375 1,433
1,366 Gain on asset exchange - - (506) - Other expense, net 49 131
76 273 Less: Capital expenditures (1,993) (3,672) (7,127) (9,852)
Current taxes 529 (239) (1,357) (2,546) --- ---- ------ ------ Free
cash flow $5,879 $4,143 $18,909 $16,121 ====== ====== =======
======= 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 Operating income before impairment charge 5,972 7,579 $5,990
$7,579 5,972 7,579 Interest expense 1,413 2,093 1,413 2,093 Other
expense, net 49 131 49 131 -- --- -- --- Income before income tax
and impairment charge $4,510 $5,355 $4,510 $5,355 ====== ======
====== ====== 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 Operating income before
impairment charge $7,243 $9,254 $7,261 $9,254 $7,243 $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 Operating income before
impairment charge $1,097 $931 $1,097 $931 $1,097 $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) - Operating income before
impairment charge 24,678 27,921 $24,346 $27,845 24,678 28,023
Interest expense 7,173 8,954 7,173 8,954 Other expense, net 76 273
76 273 -- --- -- --- Income before income tax and impairment charge
$17,429 $18,694 $17,429 $18,796 ======= ======= ======= =======
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 Operating income before impairment
charge $30,532 $34,434 $30,200 $34,358 $30,532 $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) - Operating income
before impairment charge $4,125 $3,287 $4,125 $3,287 $4,125 $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 by segment 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 Pro Forma Information December 31, 2008
and 2007 (amounts in 000's except per share data) (Unaudited) Pro
Forma (1) Pro Forma (1) Three Months Three Months Ended 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) - Operating income before impairment charge 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 before income tax and impairment charge $1,544
$1,261 $5,863 $6,534 ====== ====== ====== ====== Pro Forma (1) Pro
Forma (1) Three Months Three Months Ended 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 Operating income before impairment
charge $5,468 $5,401 $9,231 $10,451 ====== ====== ====== =======
Pro Forma (1) Pro Forma (1) Three Months Three Months Ended 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) - Operating income before impairment
charge $643 $508 $1,089 $1,017 ==== ==== ====== ====== Pro Forma
(1) Pro Forma (1) Three Months Three Months Ended 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 Three Months Ended 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) - - - Operating income before impairment charge
7,401 7,989 5,972 7,579 Interest expense 1,889 2,283 1,413 2,093
Other expense, net - 60 49 131 Income before income tax and
impairment charge $5,512 $5,646 $4,510 $5,355 ====== ====== ======
====== Pro Forma (1) Pro Forma (1) Three Months Three Months Ended
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
Operating income before impairment charge $8,589 $9,430 $7,243
$9,254 ====== ====== ====== ====== Pro Forma (1) Pro Forma (1)
Three Months Three Months Ended 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) - - -
Operating income before impairment charge $1,297 $831 $1,097 $931
====== ==== ====== ==== Pro Forma (1) Pro Forma (1) Three Months
Three Months Ended 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 Before Impairment Charge
----------------------------------------------------------
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 Operating income before impairment
charge $5,972 $18 $5,990 ====== === ====== 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 Operating income before impairment charge
$7,243 $18 $7,261 ====== === ====== 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 Operating income before impairment charge $1,097 -
$1,097 ====== = ====== Reconciliation of As-Reported (historical)
information to Same Station Operating Income Before Impairment
Charge ----------------------------------------------------------
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 Operating income before impairment
charge $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 Operating income before impairment charge $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
Operating income before impairment charge $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 Before
Impairment Charge
---------------------------------------------------------------
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 $(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) Operating income before impairment charge $24,678 $(332)
$24,346 ======= ===== ======= 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 $(1,355) $119,717 Station operating
expense 90,540 (1,023) 89,517 Operating income before impairment
charge $30,532 $(332) $30,200 ======= ===== ======= 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) Operating income before impairment charge $4,125 - $4,125
====== = ====== Reconciliation of As-Reported (historical)
information to Same Station Operating Income Before Impairment
Charge
---------------------------------------------------------------
Adjustment As-Reported For Acquisitions Same Station Twelve Months
and Dispositions Twelve Months Ended Not Included in Ended December
31, Entire 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 - - -
Operating income before impairment charge $27,921 $(76) $27,845
======= ==== ======= Adjustment As-Reported For Acquisitions Same
Station Twelve Months and Dispositions Twelve Months Ended Not
Included in Ended December 31, Entire Comparable December 31, 2007
Period 2007 ---- ------ ---- Radio Segment Net operating revenue
$126,596 $(339) $126,257 Station operating expense 92,162 (263)
91,899 Operating income before impairment charge $34,434 $(76)
$34,358 ======= ==== ======= Adjustment As-Reported For
Acquisitions Same Station Twelve Months and Dispositions Twelve
Months Ended Not Included in Ended December 31, Entire 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 - - - Operating income
before impairment charge $3,287 - $3,287 ====== = ======
DATASOURCE: Saga Communications, Inc. CONTACT: Samuel D. Bush for
Saga Communications, Inc., +1-313-886-7070 Web Site:
http://www.sagacommunications.com/
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