EXHIBIT 99.1
FOR IMMEDIATE RELEASE | ![]() |
CONTACT: | Rob Bateman, CFO of Fisher Communications, Inc. (206) 404-6776 |
FISHER COMMUNICATIONS ANNOUNCES THIRD QUARTER 2005 RESULTS
SEATTLE—(BUSINESS WIRE)—November 7, 2005—Fisher Communications, Inc. (Nasdaq: FSCI) today announced its financial results for the third quarter and year-to-date periods ended September 30, 2005.
Fisher Communications reported total revenue of $38.8 million in the third quarter of 2005, compared to $40.3 million in the third quarter of 2004. For the nine months ended September 30, 2005, the Company reported revenue of $109.9 million, compared to $111.5 million in the comparable nine-month period in 2004. For both the three and nine-month period comparisons, broadcasting revenue was lower in 2005 due primarily to lower political advertising as compared to 2004; these declines were offset somewhat by higher revenue at Fisher Plaza as a result of increased occupancy levels.
In comparison to the nine months ended September 30, 2004, year-to-date 2005 local broadcasting revenue increased at most stations, including the television and radio station group in Fisher’s largest markets of Seattle and Portland. Excluding political revenue, year-to-date 2005 national broadcasting revenue increased at Fisher’s ABC-affiliated stations and generally declined at Fisher’s smaller-market CBS-affiliated stations and at Fisher’s radio stations. The Company’s two ABC-affiliated stations accounted for 44% of the Company’s total year-to-date 2005 revenue.
Total operating expenses decreased 3% to $38.0 million in the three months ended September 30, 2005, as compared to the three-month period ended September 30, 2004. The decline in the third quarter of 2005 was due primarily to lower levels of depreciation as certain assets have become fully depreciated, as well as somewhat lower consulting and accounting expenses in the 2005 period as the Company is in the second year of compliance with the internal control requirements of the Sarbanes-Oxley Act of 2002 and has reduced certain consulting and accounting expenses.
Operating expenses increased 1% to $114.1 million in the year-to-date period ended September 30, 2005, compared to the year-to-date period ended September 30, 2004. The increase in 2005 was due primarily to certain increased syndicated television expenses, offset in part by lower levels of depreciation as certain assets have become fully depreciated.
On October 4, 2005, the Company announced the appointment of Colleen B. Brown as President and Chief Executive Officer of Fisher Communications, effective October 10, 2005. Benjamin W. Tucker, Jr., who had held the position of Fisher Communications’ Acting President and Chief Executive Officer since January 2005, left the Company to pursue other interests in October 2005. The Company expects to recognize separation expenses of approximately $600,000 in the fourth quarter of 2005 relating to Mr. Tucker’s departure. General and administrative expenses in the first nine months of 2005 include approximately $1.0 million in severance-related expenses for the Company’s former chief executive officer, who left the Company in January 2005.
The Company had no derivative instruments during the first nine months of 2005; however, the Company had pre-tax losses on derivative instruments of $2.7 million ($1.8 million after tax) in the third quarter of 2004 and $13.2 million ($8.6 million after tax) in the nine months ended September 30, 2004. Historical derivative instruments related to prior borrowing arrangements that were replaced in 2004.
The Company reported a net loss of $790,000 in the third quarter of 2005, compared to a net loss of $5.2 million in the third quarter of 2004. For the nine months ended September 30, 2005, the Company reported a net loss of $6.9 million, compared to a net loss of $16.5 million in the comparable period in 2004.
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Fisher Communications, Inc. is a Seattle-based integrated media company. Its nine network-affiliated television stations, and a tenth station 50% owned by Fisher Communications, are located in Washington, Oregon, and Idaho, and its 27 radio stations broadcast in Washington and Montana. It also owns and operates Fisher Plaza, a facility located near downtown Seattle.
FISHER COMMUNICATIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Nine months ended | Three months ended | |||||||||||||||
September 30 | September 30 | |||||||||||||||
(in thousands, except per-share amounts) Unaudited | 2005 | 2004 | 2005 | 2004 | ||||||||||||
Revenue | $ | 109,883 | $ | 111,517 | $ | 38,804 | $ | 40,251 | ||||||||
Costs and expenses | ||||||||||||||||
Cost of services sold | 57,853 | 53,449 | 20,611 | 19,870 | ||||||||||||
Selling expenses | 20,659 | 20,857 | 7,330 | 7,343 | ||||||||||||
General and administrative expenses | 25,163 | 26,093 | 7,368 | 8,117 | ||||||||||||
Depreciation and amortization | 10,445 | 12,255 | 2,694 | 3,940 | ||||||||||||
114,120 | 112,654 | 38,003 | 39,270 | |||||||||||||
Income (loss) from operations | (4,237 | ) | (1,137 | ) | 801 | 981 | ||||||||||
Net loss on derivative instruments | — | (13,245 | ) | — | (2,700 | ) | ||||||||||
Loss from extinguishment of long-term debt | — | (5,034 | ) | — | (5,034 | ) | ||||||||||
Other income, net | 2,692 | 2,247 | 911 | 780 | ||||||||||||
Interest expense | (10,241 | ) | (8,321 | ) | (3,466 | ) | (2,554 | ) | ||||||||
Loss from continuing operations before income taxes | (11,786 | ) | (25,490 | ) | (1,754 | ) | (8,527 | ) | ||||||||
Benefit for federal and state income taxes | (4,838 | ) | (9,121 | ) | (964 | ) | (3,315 | ) | ||||||||
Loss from continuing operations | (6,948 | ) | (16,369 | ) | (790 | ) | (5,212 | ) | ||||||||
Loss from discontinued operations, net of income taxes | — | (132 | ) | — | — | |||||||||||
Net loss | $ | (6,948 | ) | $ | (16,501 | ) | $ | (790 | ) | $ | (5,212 | ) | ||||
Loss per share: | ||||||||||||||||
From continuing operations | $ | (0.80 | ) | $ | (1.90 | ) | $ | (0.09 | ) | $ | (0.60 | ) | ||||
From discontinued operations | (0.01 | ) | ||||||||||||||
Net loss per share | $ | (0.80 | ) | $ | (1.91 | ) | $ | (0.09 | ) | $ | (0.60 | ) | ||||
Weighted average shares outstanding | 8,671 | 8,617 | 8,695 | 8,619 |
FISHER COMMUNICATIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30 | December 31 | |||||||
(in thousands) Unaudited | 2005 | 2004 | ||||||
Assets | ||||||||
Current assets | $ | 53,202 | $ | 60,601 | ||||
Marketable securities, at market value | 160,237 | 157,102 | ||||||
Other assets | 65,970 | 67,876 | ||||||
Property, plant and equipment, net | 146,329 | 150,293 | ||||||
Total assets | $ | 425,738 | $ | 435,872 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Notes payable | $ | — | $ | 53 | ||||
Other current liabilities | 22,077 | 27,367 | ||||||
Long-term debt | 150,000 | 150,000 | ||||||
Deferred income taxes | 31,690 | 36,133 | ||||||
Other liabilities | 20,822 | 19,866 | ||||||
Total liabilities | 224,589 | 233,419 | ||||||
Stockholders’ equity, other than accumulated other comprehensive income | 99,865 | 103,261 | ||||||
Accumulated other comprehensive income, net of income taxes | 101,284 | 99,192 | ||||||
Total stockholders’ equity | 201,149 | 202,453 | ||||||
Total liabilities and stockholders’ equity | $ | 425,738 | $ | 435,872 | ||||