Exhibit 99.1
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| FOR IMMEDIATE RELEASE | |  |
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| CONTACT: | | Rob Bateman, CFO of Fisher Communications, Inc. (206) 404-6776 |
FISHER COMMUNICATIONS ANNOUNCES SECOND QUARTER 2005 RESULTS
SEATTLE—(BUSINESS WIRE)—August 5, 2005—Fisher Communications, Inc. (Nasdaq: FSCI) today announced its financial results for the second quarter and year-to-date periods ended June 30, 2005.
Fisher Communications reported total revenue of $40.1 million in the second quarter of 2005, compared to $40.4 million in the second quarter of 2004. For the six months ended June 30, 2005, the Company reported revenue of $71.1 million, compared to $71.3 million in the comparable six-month period in 2004. For both the three and six-month period comparisons, broadcasting revenue was somewhat lower in 2005 due primarily to lower political advertising as compared to 2004; these declines were offset by higher revenue at Fisher Plaza as a result of increased occupancy levels.
“We saw strength in local broadcast advertising in the second quarter of 2005, which helped to offset a decline in political advertising from the prior year,” stated Ben Tucker, Acting President and CEO of Fisher Communications. “Improved network programming for our ABC stations has also strengthened our revenue position.” The Company’s two ABC-affiliated stations accounted for approximately 45% of the Company’s total year-to-date 2005 revenue.
Total operating expenses increased $1.0 million to $39.6 million in the three months ended June 30, 2005, as compared to the three-month period ended June 30, 2004. Operating expenses increased $2.7 million to $76.1 million in the year-to-date period ended June 30, 2005, compared to the year-to-date period ended June 30, 2004. These increases were due primarily to certain increased syndicated television expenses. Expenses in the first half of 2005 include approximately $1.0 million in severance-related expenses for the Company’s former chief executive officer.
The Company reported a net loss of $1.1 million in the second quarter of 2005, compared to a net loss of $1.4 million in the second quarter of 2004. For the six months ended June 30, 2005, the Company reported a net loss of $6.2 million, compared to a net loss of $11.3 million in the comparable period in 2004. The Company had no derivative instruments during the first half of 2005; however, the Company had pre-tax losses on derivative instruments of $1.4 million ($0.9 million after tax) in the second quarter of 2004 and $10.5 million ($6.9 million after tax) in the six months ended June 30, 2004. Historical derivative instruments related to prior borrowing arrangements that were replaced 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
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| | | Six months ended June 30
| | | Three months ended June 30
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(in thousands, except per-share amounts) Unaudited
| | 2005
| | | 2004
| | | 2005
| | | 2004
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Revenue | | $ | 71,079 | | | $ | 71,266 | | | $ | 40,122 | | | $ | 40,374 | |
Costs and expenses | | | | | | | | | | | | | | | | |
Cost of services sold | | | 37,242 | | | | 33,579 | | | | 20,619 | | | | 18,520 | |
Selling expenses | | | 13,329 | | | | 13,514 | | | | 7,451 | | | | 7,151 | |
General and administrative expenses | | | 17,795 | | | | 17,976 | | | | 7,920 | | | | 8,797 | |
Depreciation and amortization | | | 7,751 | | | | 8,315 | | | | 3,622 | | | | 4,104 | |
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| | | | 76,117 | | | | 73,384 | | | | 39,612 | | | | 38,572 | |
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Income (loss) from operations | | | (5,038 | ) | | | (2,118 | ) | | | 510 | | | | 1,802 | |
Net loss on derivative instruments | | | — | | | | (10,545 | ) | | | — | | | | (1,373 | ) |
Other income, net | | | 1,781 | | | | 1,467 | | | | 931 | | | | 664 | |
Interest expense | | | (6,775 | ) | | | (5,767 | ) | | | (3,404 | ) | | | (2,643 | ) |
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Loss from continuing operations before income taxes | | | (10,032 | ) | | | (16,963 | ) | | | (1,963 | ) | | | (1,550 | ) |
Benefit for federal and state income taxes | | | (3,874 | ) | | | (5,806 | ) | | | (873 | ) | | | (106 | ) |
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Loss from continuing operations | | | (6,158 | ) | | | (11,157 | ) | | | (1,090 | ) | | | (1,444 | ) |
Loss from discontinued operations, net of income taxes | | | — | | | | (132 | ) | | | — | | | | — | |
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Net loss | | $ | (6,158 | ) | | $ | (11,289 | ) | | $ | (1,090 | ) | | $ | (1,444 | ) |
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Loss per share: | | | | | | | | | | | | | | | | |
From continuing operations | | $ | (0.71 | ) | | $ | (1.30 | ) | | $ | (0.13 | ) | | $ | (0.17 | ) |
From discontinued operations | | | | | | | (0.01 | ) | | | | | | | | |
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Net loss per share | | $ | (0.71 | ) | | $ | (1.31 | ) | | $ | (0.13 | ) | | $ | (0.17 | ) |
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Weighted average shares outstanding | | | 8,658 | | | | 8,615 | | | | 8,690 | | | | 8,619 | |
FISHER COMMUNICATIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
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(in thousands) Unaudited
| | June 30 2005
| | December 31 2004
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Assets | | | | | | |
Current assets | | $ | 51,390 | | $ | 60,601 |
Marketable securities, at market value | | | 163,149 | | | 157,102 |
Other assets | | | 66,431 | | | 67,876 |
Property, plant and equipment, net | | | 146,435 | | | 150,293 |
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Total assets | | $ | 427,405 | | $ | 435,872 |
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Liabilities and Stockholders’ Equity | | | | | | |
Notes payable and current portion of long-term debt | | $ | — | | $ | 53 |
Other current liabilities | | | 17,626 | | | 27,367 |
Long-term debt | | | 150,000 | | | 150,000 |
Deferred income taxes | | | 35,040 | | | 36,133 |
Other liabilities | | | 20,914 | | | 19,866 |
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Total liabilities | | | 223,580 | | | 233,419 |
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Stockholders’ equity, other than accumulated other comprehensive income | | | 100,649 | | | 103,261 |
Accumulated other comprehensive income, net of income taxes | | | 103,176 | | | 99,192 |
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Total stockholders’ equity | | | 203,825 | | | 202,453 |
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Total liabilities and stockholders’ equity | | $ | 427,405 | | $ | 435,872 |
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