EXHIBIT 99.1
FOR IMMEDIATE RELEASE | ![]() |
FISHER COMMUNICATIONS ANNOUNCES CONTINUED REVENUE IMPROVEMENT WITH THIRD QUARTER 2007 RESULTS
SEATTLE—(MARKETWIRE)—November 1, 2007—Fisher Communications, Inc. (NASDAQ: FSCI) today announced its financial results for the three-month and nine-month periods ended September 30, 2007.
Revenues for the third quarter of 2007 were $40.8 million, reflecting an increase of $2.1 million or five percent over the third quarter of 2006. For the nine months of 2007, total revenue increased $6.4 million, or six percent, compared to the same period of 2006.
Television revenue increased $1.1 million, or four percent, in the third quarter of 2007, over the third quarter of 2006. Radio revenue increased $679,000, or six percent, in the same quarter-over-quarter period. On a year-to-date basis, television and radio revenue increased five percent and three percent, respectively, compared to the same period of 2006.
Fisher Plaza revenue increased 19 percent in the third quarter and 28 percent in the first nine months of 2007, primarily as a result of increased average occupancy, rental rates and services fees compared to the same periods of 2006. Fisher Plaza occupancy was 96 percent as of September 30, 2007.
“The third quarter of 2007 continued our trend of revenue growth,” said Colleen B. Brown, president and chief executive officer of Fisher Communications. “The revenue increase was driven by Fisher’s expanding efforts in Spanish-language television, increased broadcast advertising, increased rental income from Fisher Plaza, and an improved news performance. During the final quarter of the year, we will grow our Univision affiliated stations’ revenue and expand our Internet presence.”
Third Quarter 2007 Highlights and Recent Developments
• | On July 17, 2007, the Company announced its acquisition ofPegasus News, a Dallas-based online local news company. A pioneer of hyper-local media,Pegasus Newsspecializes in providing personalized local news, information, and advertising. Fisher plans to take Pegasus’ news, information and advertising model to additional U.S. markets in the coming year. | ||
• | On August 6, 2007, the Company announced its agreement to purchase KBAK-TV (CBS affiliate) and KBFX-CA (Fox affiliate), a unique media duopoly in Bakersfield, California from Westwind Communications, LLC, for approximately $55 million. | ||
• | On August 27, 2007, the Company announced that Nancy J. Bruner will lead the Company’s interactive businesses, as vice president of Fisher Interactive Networks. Ms. Bruner is a seasoned media executive with expertise in Internet business development, strategic market development, product development, and media management. | ||
• | On September 27, 2007, the Company announced that Jim Clayton has been named vice president general manager of Fisher Seattle. Clayton added Fisher’s Seattle radio stations KOMO 1000 News, STAR 101.5 and 570 KVI to his current responsibilities as vice president and general manager of KOMO 4 and KUNS-TV. Clayton will also be responsible for the joint sales agreements with KING FM and KKOL in Seattle. |
Net Income from Continuing and Discontinued Operations
Net loss for the third quarter of 2007 was $533,000, compared to a net loss of $671,000 in the third quarter of 2006. In both years, third quarter net loss was comprised of continuing and discontinued operations. Third quarter 2007 loss from continuing operations was $601,000, compared to $784,000 for third quarter 2006, which included tax expense adjustments of $448,000 and $388,000, respectively, as a result of IRS audits of prior year federal tax returns. Discontinued operations reflect the after-tax operating results attributable to the Company’s small-market radio stations sold or held for sale. In the second quarter of 2007, the Company sold one of the remaining six radio stations held for sale for $3.0 million. Income from discontinued operations includes a gain on the sale of $1.5 million (net of tax) for the nine months ending September 30, 2007.
Loss from continuing operations for the nine months ending September 30, 2007, was $1.2 million, compared to $779,000 for the same period of 2006. Including income from discontinued operations, consolidated net income was $478,000, compared to a net loss of $104,000 in the same period of 2006.
CONTACT: | S. Mae Fujita Numata Senior Vice President, Chief Financial Officer and Corporate Secretary Fisher Communications, Inc. (206) 404-6776 |
About Fisher Communications
Fisher Communications, Inc. is a Seattle-based communications company that owns and manages twelve full power and seven low-power television stations and eight radio stations in the Pacific Northwest. The Company owns and operates Fisher Pathways, a satellite and fiber transmission provider; Fisher Plaza, a media, telecommunications, and data center facility located near downtown Seattle; and Pegasus News, an online start-up and hyper-local media pioneer based in Dallas. For more information about Fisher Communications, Inc., go to www.fsci.com.
Forward-looking statement
This release may contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. A more detailed description of certain factors that could affect actual results include, but are not limited to, those discussed in Fisher Communications’ most recent Annual Report on Form 10-K and quarterly reports on Form 10-Q as filed from time to time with the Securities and Exchange Commission (“SEC”). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Fisher Communications undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.
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 | 2007 | 2006 | 2007 | 2006 | ||||||||||||
Revenue | $ | 116,340 | $ | 109,983 | $ | 40,798 | $ | 38,712 | ||||||||
Costs and expenses | ||||||||||||||||
Direct operating costs | 41,920 | 38,993 | 13,870 | 13,595 | ||||||||||||
Selling, general and administrative expenses | 43,285 | 40,139 | 15,052 | 13,689 | ||||||||||||
Amortization of program rights | 16,804 | 16,418 | 7,370 | 7,082 | ||||||||||||
Depreciation and amortization | 8,668 | 7,515 | 2,811 | 2,488 | ||||||||||||
110,677 | 103,065 | 39,103 | 36,854 | |||||||||||||
Income from operations | 5,663 | 6,918 | 1,695 | 1,858 | ||||||||||||
Other income, net | 3,683 | 2,814 | 1,387 | 1,047 | ||||||||||||
Interest expense | (10,222 | ) | (10,396 | ) | (3,318 | ) | (3,574 | ) | ||||||||
Loss from continuing operations before income taxes | (876 | ) | (664 | ) | (236 | ) | (669 | ) | ||||||||
Provision for federal and state income taxes | 294 | 115 | 365 | 115 | ||||||||||||
Loss from continuing operations | (1,170 | ) | (779 | ) | (601 | ) | (784 | ) | ||||||||
Income from discontinued operations, net of income taxes | 1,648 | 675 | 68 | 113 | ||||||||||||
Net income (loss) | $ | 478 | $ | (104 | ) | $ | (533 | ) | $ | (671 | ) | |||||
Income (loss) per share: | ||||||||||||||||
From continuing operations | $ | (0.14 | ) | $ | (0.09 | ) | $ | (0.07 | ) | $ | (0.09 | ) | ||||
From discontinued operations | 0.19 | 0.08 | 0.01 | 0.01 | ||||||||||||
Basic and diluted net income (loss) per share | $ | 0.05 | $ | (0.01 | ) | $ | (0.06 | ) | $ | (0.08 | ) | |||||
Shares used in computation of basic and diluted net income (loss) per share | 8,722 | 8,711 | 8,724 | 8,716 |
FISHER COMMUNICATIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30 | December 31 | |||||||
(in thousands) Unaudited | 2007 | 2006 | ||||||
Assets | ||||||||
Current assets | $ | 51,455 | $ | 57,058 | ||||
Marketable securities, at market value | 184,394 | 188,307 | ||||||
Other assets | 110,601 | 104,005 | ||||||
Property, plant and equipment, net | 146,499 | 148,207 | ||||||
Total assets | $ | 492,949 | $ | 497,577 | ||||
Liabilities and stockholders’ equity | ||||||||
Current liabilities | $ | 22,905 | $ | 26,044 | ||||
Long-term debt | 150,000 | 150,000 | ||||||
Deferred income taxes | 53,651 | 54,414 | ||||||
Other liabilities | 28,346 | 27,554 | ||||||
Total liabilities | 254,902 | 258,012 | ||||||
Stockholders’ equity, other than accumulated other comprehensive income | 121,097 | 120,071 | ||||||
Accumulated other comprehensive income, net of income taxes | 116,950 | 119,494 | ||||||
Total stockholders’ equity | 238,047 | 239,565 | ||||||
Total liabilities and stockholders’ equity | $ | 492,949 | $ | 497,577 | ||||