Fisher Communications (FSCI) 8-K Fisher Communications Announces First Quarter Results

Exhibit 99.1

FOR IMMEDIATE RELEASE

CONTACT:    William W. Krippaehne Jr. of Fisher Communications, Inc. 206-404-6783

FISHER COMMUNICATIONS ANNOUNCES FIRST QUARTER RESULTS

SEATTLE—(BUSINESS WIRE)—April 28, 2004—Fisher Communications, Inc. (Nasdaq: FSCI) today announced its financial results for the first quarter of 2004.

Loss from continuing operations for the three months ended March 31, 2004 was $9,713,000, or $1.13 per share. Including discontinued operations, first quarter 2004 net loss was $9,845,000. These results included a non-cash net loss from derivative instruments amounting to $5,843,000, after income tax effects, or $.68 per share. On a pro forma basis, excluding the net loss from derivative instruments, first quarter 2004 loss from continuing operations was $3,870,000, or $.45 per share.

Loss from continuing operations for the three months ended March 31, 2003 amounted to $2,869,000, or $.33 per share. Including discontinued operations, net loss for the first quarter of 2003 was $2,946,000. First quarter 2003 results included a non-cash net loss from derivative instruments amounting to $154,000, after income tax effects, and net gain from sale of marketable securities amounting to $2,341,000, after income tax effects. On a pro forma basis, excluding the net loss from derivative instruments and the net gain from sale of marketable securities, loss from continuing operations for the three months ended March 31, 2003 was $5,056,000, or $.58 per share.

Net revenue from broadcasting operations increased 8% compared to the first quarter of 2003, driven by increased revenue at each of the Company’s television and radio station groups. Revenue from the Company’s Fisher Plaza segment declined compared to the first quarter of 2003, primarily due to a significant payment from a tenant in first quarter 2003 as a result of early termination of a lease.

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Fisher Communications, Inc. is a Seattle-based communications and media company focused on creating, aggregating, and distributing information and entertainment to a broad range of audiences. Its 10 network-affiliated television stations are located in Washington, Oregon, and Idaho, and its 27 radio stations broadcast in Washington and Montana. Other operations currently include Fisher Pathways, a satellite and fiber transmission provider, and Fisher Plaza.

FISHER COMMUNICATIONS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	Three months ended March 31
(in thousands, except per share amounts) Unaudited	2004			2003
Revenue	$	30,892		$	30,219
Costs and expenses
Cost of services sold		15,059			15,236
Selling expenses		6,363			6,029
General and administrative expenses		9,179			10,295
Depreciation and amortization		4,211			4,077
		34,812			35,637
Loss from operations		(3,920	)		(5,418	)
Net loss on derivative instruments		(9,172	)		(242	)
Other income, net		793			4,425
Equity in operations of equity investees		10			4
Interest expense		(3,124	)		(3,569	)
Loss from continuing operations before income taxes		(15,413	)		(4,800	)
Provision (benefit) for federal and state income taxes		(5,700	)		(1,931	)
Loss from continuing operations		(9,713	)		(2,869	)
Loss from discontinued operations, net of income taxes		(132	)		(77	)
Net loss	$	(9,845	)	$	(2,946	)
Loss per share:
From continuing operations	$	(1.13	)	$	(0.33	)
From discontinued operations		(0.01	)		(0.01	)
Net loss per share	$	(1.14	)	$	(0.34	)
Weighted average shares outstanding		8,612			8,594

NOTE: Certain prior year balances have been reclassified to conform to the 2004 presentation.

FISHER COMMUNICATIONS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands) Unaudited	March 31 2004		December 31 2003
Assets
Current assets	$	57,686	$	53,525
Marketable securities, at market value		129,462		116,882
Other assets		66,571		66,435
Property, plant and equipment, net		155,976		159,843
Total assets	$	409,695	$	396,685
Liabilities and Stockholders’ Equity
Notes payable and current portion of long-term debt	$	46,108	$	1,526
Other current liabilities		23,521		28,780
Long-term debt, net of current maturities		91,042		127,331
Deferred income taxes		27,296		25,980
Other liabilities		35,163		25,264
Total liabilities		223,130		208,881
Stockholders’ equity, other than accumulated other comprehensive income		105,299		114,715
Accumulated other comprehensive income, net of income taxes		81,266		73,089
Total stockholders’ equity		186,565		187,804
Total liabilities and stockholders’ equity	$	409,695	$	396,685

CONDENSED CONSOLIDATED STATEMENTS OF

COMPREHENSIVE INCOME

	Three months ended March 31
(in thousands) Unaudited	2004			2003
Net loss	$	(9,845	)	$	(2,946	)
Other comprehensive income:
Unrealized gain on marketable securities		12,580			904
Effect of income taxes		(4,403	)		(317	)
Unrealized gain on marketable securities reclassified to operations					(3,114	)
Effect of income taxes					1,090
Adjustment to minimum pension liability					630
Effect of income taxes					(220	)
		8,177			(1,027	)
Comprehensive loss	$	(1,668	)	$	(3,973	)

This press release contains certain financial information (presented on a “pro forma basis”) calculated on a basis other than United States generally accepted accounting principles (“GAAP”). The information presented on a pro forma basis relates to the calculation of loss from continuing operations for the first quarter of 2004 and the first quarter of 2003, after excluding net loss from derivative instruments for those periods and, for the first quarter of 2003, excluding a one-time net gain from the sale of marketable securities. Management believes these pro forma calculations are meaningful because they exclude either unusual one-time transactions (in the case of the sale of marketable securities) or are non-operating items resulting in non-cash charges or gains (in the case of losses or gains from derivative instruments), and therefore management believes they are helpful in understanding the performance of the Company’s continuing operations. Management also considers these pro forma calculations in evaluating the performance of the Company. These pro forma calculations should be considered in addition to and not as a substitute for or superior to financials calculated in accordance with GAAP. These pro forma calculations are not determined using GAAP; therefore, the information is not necessarily comparable to financial information disclosed by other companies. Set forth below is a reconciliation of these measures to the most directly comparable financial measure calculated in accordance with GAAP (in thousands):

FISHER COMMUNICATIONS, INC. AND SUBSIDIARIES

PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	Three months ended March 31, 2004								Three months ended March 31, 2003
(in thousands, except per share amounts) Unaudited	As Reported (1)			Adjustments		Pro Forma			As Reported (1)			Adjustments			Pro Forma
Revenue	$	30,892				$	30,892		$	30,219					$	30,219
Costs and expenses
Cost of services sold		15,059					15,059			15,236						15,236
Selling expenses		6,363					6,363			6,029						6,029
General and administrative expenses		9,179					9,179			10,295						10,295
Depreciation and amortization		4,211					4,211			4,077						4,077
		34,812					34,812			35,637						35,637
Loss from operations		(3,920	)				(3,920	)		(5,418	)					(5,418	)
Net loss on derivative instruments		(9,172	)	$	9,172		0			(242	)	$	242			0
Other income, net		793					793			4,425			(3,675	)		750
Equity in operations of equity investees		10					10			4						4
Interest expense		(3,124	)				(3,124	)		(3,569	)					(3,569	)
Loss from continuing operations before income taxes		(15,413	)		9,172		(6,241	)		(4,800	)		(3,433	)		(8,233	)
Provision (benefit) for federal and state income taxes		(5,700	)		3,329		(2,371	)		(1,931	)		(1,246	)		(3,177	)
Loss from continuing operations		(9,713	)		5,843		(3,870	)		(2,869	)		(2,187	)		(5,056	)
Loss from discontinued operations, net of income taxes		(132	)				(132	)		(77	)					(77	)
Net loss	$	(9,845	)	$	5,843	$	(4,002	)	$	(2,946	)	$	(2,187	)	$	(5,133	)
Loss per share:
From continuing operations	$	(1.13	)	$	0.68	$	(0.45	)	$	(0.33	)	$	(0.25	)	$	(0.58	)
From discontinued operations		(0.01	)				(0.01	)		(0.01	)					(0.01	)
Net loss per share	$	(1.14	)	$	0.68	$	(0.46	)	$	(0.34	)	$	(0.25	)	$	(0.59	)
Weighted average shares outstanding		8,612			8,612		8,612			8,594			8,594			8,594

NOTE: Certain prior year balances have been reclassified to conform to the 2004 presentation.

(1) In accordance with accounting principles generally accepted in the United States.