Saga Communications, Inc. : Reports 3rd Quarter 2011 Results
11/03/2011| 11:05am US/Eastern
Recommend:
GROSSE POINTE FARMS, Mich., Nov. 3, 2011 /PRNewswire/ -- Saga Communications, Inc. (NYSE Amex: SGA) today reported net income for the 3rd quarter increased 3.9% to $3.7 million ($0.87 per fully diluted share compared to $0.84 per fully diluted share for the same period last year). Free cash flow was flat with the same period last year at $6.0 million. For the three month period ended September 30, 2011, net operating revenue decreased 1.0% from the comparable period in 2010 to $32.5 million with operating income of $7.0 million compared to $7.4 million for the same period last year. For the same period, station operating expense was also even with last year at $23.6 million (station operating expense includes depreciation and amortization attributable to the stations).
For the nine month period free cash flow increased 10.6% to $15.5 million compared to $14.0 million for the same period in 2010. The Company's net operating revenue increased 0.8% to $94.4 million while station operating expense increased 0.8% compared to the same period last year to $69.9 million (station operating expense includes depreciation and amortization attributable to the stations). Operating income was $18.6 million compared to $18.8 million for the same period last year and net income for the period was $8.5 million ($2.01 per fully diluted share compared to $2.50 per fully diluted share for the same period last year).
Capital expenditures in the third quarter of 2011 were $1.6 million compared to $1.1 million for the same period last year. For the nine month period, capital expenditures were $4.1 million compared to $3.3 million for the same period last year. The Company currently expects to spend approximately $5.5 - $6.0 million for capital expenditures during 2011.
The Company continues to maintain a solid balance sheet with $7.6 million in cash balances as of September 30, 2011. As of September 30, 2011, the Company's outstanding bank debt was $75.3 million. The trailing 12 month leverage ratio calculated as a multiple of consolidated EBITDA was 2.2 times.
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 free cash flow, 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 Supplemental Financial Data table.
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 3rd Quarter 2011 conference call will be on Thursday, November 3, 2011 at 2:00 p.m. EDT. The dial-in number for all calls is (612) 332-0107. A transcript of the call will be posted to the Company's web site after the call.
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. EDT on November 3, 2011 to SagaIR@sagacom.com. 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 Nine Months Ended
September 30, 2011 and 2010
(amounts in 000's except per share data)
(Unaudited)
Three Months Nine Months
Ended Ended
September 30, September 30,
------------- -------------
2011 2010 2011 2010
---- ---- ---- ----
Operating Results
Net operating revenue $32,494 $32,810 $94,385 $93,684
Station operating expense 23,553 23,629 69,912 69,346
Corporate general and
administrative 1,965 1,741 5,854 5,520
Operating income 6,976 7,440 18,619 18,818
Interest expense 646 1,375 2,837 4,362
Write-off revolving credit
facility debt issuance
costs - - 1,326 -
Other (income) expense, net 27 13 - (3,398)
--- --- --- ------
Income before income tax 6,303 6,052 14,456 17,854
Income tax expense 2,609 2,495 5,930 7,285
Net income $3,694 $3,557 $8,526 $10,569
====== ====== ====== =======
Earnings per share
Basic $0.87 $0.84 $2.01 $2.50
===== ===== ===== =====
Diluted $0.87 $0.84 $2.01 $2.50
===== ===== ===== =====
Weighted average common
shares 4,242 4,236 4,238 4,230
Weighted average common and
common
equivalent shares 4,246 4,236 4,242 4,230
Free Cash Flow
Net income $3,694 $3,557 $8,526 $10,569
Plus: Depreciation and
amortization:
Station 1,826 1,885 5,339 5,583
Corporate 60 57 173 163
Deferred tax provision 1,900 1,430 3,950 3,625
Non-cash compensation 75 187 311 715
Debt issuance cost write-
off - - 1,326 -
Other (income) expense, net 27 13 - (3,398)
Less: Capital expenditures (1,618) (1,113) (4,140) (3,259)
Free cash flow $5,964 $6,016 $15,485 $13,998
====== ====== ======= =======
Balance Sheet Data
Working capital $14,748 $15,185
Net fixed assets $64,211 $66,473
Net intangible assets and
other assets $96,675 $97,117
Total assets $192,190 $202,720
Long-term debt (including
current
portion of $4,000 and
$11,088, respectively) $76,328 $105,578
Stockholders' equity $88,798 $75,298
Saga Communications, Inc.
Selected Supplemental Financial Data
For the Three and Nine Months Ended
September 30, 2011 and 2010
(amounts in 000's)
(Unaudited)
Corporate
and
Radio Television Other Consolidated
----- ---------- ------ ------------
Three Months Ended
September 30, 2011:
Net operating
revenue $27,885 $4,609 $- $32,494
Station
operating
expense 20,029 3,524 - 23,553
Corporate G&A - - 1,965 1,965
Operating
income (loss) $7,856 $1,085 $(1,965) $6,976
====== ====== ======= ======
Depreciation
and
amortization $1,385 $441 $60 $1,886
====== ==== === ======
Corporate
and
Radio Television Other Consolidated
----- ---------- ------ ------------
Three Months Ended
September 30, 2010:
Net operating
revenue $28,089 $4,721 $- $32,810
Station
operating
expense 20,134 3,495 - 23,629
Corporate G&A - - 1,741 1,741
Operating
income (loss) $7,955 $1,226 $(1,741) $7,440
====== ====== ======= ======
Depreciation
and
amortization $1,447 $438 $57 $1,942
====== ==== === ======
Corporate
and
Radio Television Other Consolidated
----- ---------- ------ ------------
Nine Months Ended
September 30, 2011:
Net operating
revenue $81,002 $13,383 $- $94,385
Station
operating
expense 59,311 10,601 - 69,912
Corporate G&A - - 5,854 5,854
Operating
income (loss) $21,691 $2,782 $(5,854) $18,619
======= ====== ======= =======
Depreciation
and
amortization $4,072 $1,267 $173 $5,512
====== ====== ==== ======
Corporate
and
Radio Television Other Consolidated
----- ---------- ------ ------------
Nine Months Ended
September 30, 2010:
Net operating
revenue $80,894 $12,790 $- $93,684
Station
operating
expense 59,184 10,162 - 69,346
Corporate G&A - - 5,520 5,520
Operating
income (loss) $21,710 $2,628 $(5,520) $18,818
======= ====== ======= =======
Depreciation
and
amortization $4,312 $1,271 $163 $5,746
====== ====== ==== ======
Saga Communications, Inc.
Selected Supplemental Financial Data
September 30, 2011
(amounts in 000's except ratios)
(Unaudited)
Less: Plus: Trailing
12 Mos 12 Mos
Ended 9 Mos Ended 9 Mos Ended Ended
December September September September
31, 30, 30, 30,
2010 2010 2011 2011
---- ---- ---- ----
Trailing 12 Month Consolidated EBITDA (1)
Net income $15,136 $10,569 $8,526 $13,093
Less: Loss on sale of assets (386) (364) (109) (131)
Other gains - 201 109 (92)
Gain on license downgrade 3,756 3,561 - 195
Loss on write-off of unamortized debt
issuance costs - - (1,326) (1,326)
Other 46 24 201 223
--- --- --- ---
Total exclusions 3,416 3,422 (1,125) (1,131)
----- ----- ------ ------
Consolidated adjusted net income (1) 11,720 7,147 9,651 14,224
Plus: Interest expense 5,622 4,362 2,837 4,097
Income tax expense 10,400 7,285 5,930 9,045
Depreciation & amortization expense 7,718 5,746 5,512 7,484
Amortization of television syndicated
programming contracts 732 541 543 734
Non-cash stock based compensation
expense 927 715 311 523
Less: Cash television programming
payments (744) (552) (536) (728)
Trailing twelve month consolidated EBITDA
(1) $36,375 $25,244 $24,248 $35,379
======= ======= ======= =======
Total long-term debt, including current maturities $76,328
Divided by trailing twelve month consolidated EBITDA
(1) 35,379
Leverage ratio 2.2
===
As defined in the Company's credit
(1) facility.
SOURCE Saga Communications, Inc.
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