![[earningsreleaseq3001.jpg]](https://capedge.com/proxy/8-K/0001050606-13-000024/earningsreleaseq3001.jpg){kind=small}
SALEM COMMUNICATIONS ANNOUNCES INCREASE IN THIRD QUARTER 2013 TOTAL REVENUE OF 3.1% TO $58.5 MILLION
CAMARILLO, CA November 5, 2013 – Salem Communications Corporation (Nasdaq: SALM) released its results for the three and nine months ended September 30, 2013.
Third Quarter 2013 Highlights
·
Total revenue increased 3.1%
·
Internet revenue increased 20.4% and Internet operating income increased 39.0%
·
Adjusted EBITDA(1) increased 0.7%
·
Entered into agreement to acquire KRDY-AM in San Antonio, TX and KDIS-FM in Little Rock, AR for $2.5 million
·
Total debt excluding capital leases decreased $3.9 million during the quarter to $294.5 million
Third Quarter 2013 Results
For the quarter ended September 30, 2013 compared to the quarter ended September 30, 2012:
Consolidated
·
Total revenue increased 3.1% to $58.5 million from $56.7 million;
·
Total operating expenses increased 2.6% to $49.5 million from $48.2 million;
·
Operating expenses, excluding gains or losses on the sale or disposal of assets and stock-based compensation expense increased 3.8% to $49.2 million from $47.4 million;
·
Operating income increased 5.8% to $9.0 million from $8.5 million;
·
Net income increased 58.0% to $5.3 million, or $0.21 net income per diluted share, from $3.4 million, or $0.13 net income per diluted share, in the prior year;
·
EBITDA(1) increased 5.4% to $12.7 million from $12.1 million; and
·
Adjusted EBITDA increased 0.7% to $13.1 million from $13.0 million.
Broadcast
·
Net broadcast revenue increased 0.3% to $46.0 million from $45.9 million;
·
Station operating income (“SOI”)(1) decreased 0.6% to $15.2 million from $15.3 million;
·
Same station net broadcast revenue decreased 0.7% to $45.6 million from $45.9 million;
·
Same station SOI decreased 0.4% to $15.2 million from $15.3 million; and
·
Same station SOI margin increased to 33.4% from 33.3%.
Internet
·
Internet revenue increased 20.4% to $9.4 million from $7.8 million; and
·
Internet operating income(1) increased 39.0% to $2.7 million from $2.0 million.
Publishing
·
Publishing revenue increased 1.6% to $3.1 million from $3.0 million; and
·
Publishing operating income(1) decreased to a $0.2 million loss from $44,000 income.
Page | 1
Included in the results for the quarter ended September 30, 2013 are:
·
A $0.4 million non-cash compensation charge ($0.2 million, net of tax, or $0.01 per share) related to the expensing of stock options consisting of:
o
$0.2 million non-cash compensation included in corporate expenses;
o
$0.1 million non-cash compensation included in broadcast operating expenses; and
o
$0.1 million non-cash compensation included in Internet operating expenses.
Included in the results for the quarter ended September 30, 2012 are:
·
A $0.6 million loss ($0.4 million, net of tax, or $0.01 per share) on disposal of assets and;
·
A $0.3 million non-cash compensation charge ($0.2 million, net of tax, or $0.01 per share) related to the expensing of stock options consisting of:
o
$0.2 million non-cash compensation included in corporate expenses; and
o
$0.1 million non-cash compensation included in broadcast operating expenses.
Per share numbers are calculated based on 25,921,391 diluted weighted average shares for the quarter ended September 30, 2013, and 25,358,052 diluted weighted average shares for the quarter ended September 30, 2012.
Year to Date 2013 Results
For the nine months ended September 30, 2013 compared to the nine months ended September 30, 2012:
Consolidated
·
Total revenue increased 3.3% to $174.2 million from $168.6 million;
·
Operating expenses increased 0.7% to $149.4 million from $148.4 million;
·
Operating expenses excluding gains or losses the sale or disposals of assets, stock-based compensation expense and impairment charges increased 4.2% to $147.1 million from $141.2 million;
·
Operating income increased 22.6% to $24.8 million from $20.3 million;
·
The company had a net loss of $8.1 million, or $0.32 net loss per share, compared to net income of $2.4 million, or $0.10 net income per diluted share, in the prior year;
·
EBITDA decreased 72.0% to $8.4 million from $30.1 million; and
·
Adjusted EBITDA increased 0.7% to $38.5 million from $38.3 million.
Broadcast
·
Net broadcast revenue increased to $136.3 million from $136.2 million;
·
SOI decreased 2.0% to $45.0 million from $45.9 million;
·
Same station net broadcast revenue decreased 0.9% to $134.9 million from $136.1 million;
·
Same station SOI decreased 1.9% to $45.2 million from $46.0 million; and
·
Same station SOI margin decreased to 33.5% from 33.8%.
Page | 2
Internet
·
Internet revenue increased 24.7% to $29.0 million from $23.3 million; and
·
Internet operating income increased 59.7% to $8.6 million from $5.4 million.
Publishing
·
Publishing revenue decreased 2.1% to $8.9 million from $9.1 million; and
·
The publishing division had a loss of $0.8 million compared to income of $0.2 million.
Included in the results for the nine months ended September 30, 2013 are:
·
A $27.8 million loss ($16.7 million, net of tax, or $0.67 per share) on the early retirement of long-term debt due to the repurchase of $212.6 million of our Terminated95/8% senior secured second lien notes due in 2016 and the termination of then existing bank debt;
·
A $0.8 million impairment loss ($0.5 million, net of tax, or $0.02 per share) associated with the goodwill and mastheads of our publishing businesses; and
·
A $1.5 million non-cash compensation charge ($0.9 million, net of tax, or $0.04 per share) related to the expensing of stock options primarily consisting of:
o
$1.0 million non-cash compensation included in corporate expenses;
o
$0.3 million non-cash compensation included in broadcast operating expenses;
o
$0.2 million non-cash compensation included in Internet operating expenses; and
o
the remainder included in publishing operating expenses.
Included in the results for the nine months ended September 30, 2012 are:
·
A $0.6 million loss ($0.3 million, net of tax, or $0.01 per share) on disposal of assets;
·
A $0.9 million loss ($0.5 million, net of tax, or $0.02 per share) on early retirement of long-term debt due to the repurchase of $17.5 million of our Terminated95/8% senior secured second lien notes due in 2016;
·
A $5.6 million impairment loss ($3.4 million, net of tax, or $0.14 per share) on land in Covina, California; and
·
A $1.0 million non-cash compensation charge ($0.6 million, net of tax, or $0.02 per share) related to the expensing of stock options consisting of:
o
$0.7 million non-cash compensation included in corporate expenses;
o
$0.2 million non-cash compensation included in broadcast operating expenses; and
o
$0.1 million non-cash compensation included in internet operating expenses.
Per share numbers are calculated based on 24,832,140 diluted weighted average shares for the nine months ended September 30, 2013, and 24,893,832 diluted weighted average shares for the nine months ended September 30, 2012.
Balance Sheet
As of September 30, 2013, the company had $2.5 million outstanding on its revolver and $292.0 million outstanding on the Term Loan B. The company was in compliance with the covenants of its credit facility. The company’s bank leverage ratio was 5.45 versus a compliance covenant of 6.75.
Page | 3
Conference Call Information
Salem will host a teleconference to discuss its results on November 5, 2013 at 2:00 p.m. Pacific Time. To access the teleconference, please dial (719) 325-4923, passcode 8332965 or listen via the investor relations portion of the company’s website, located at www.salem.cc. A replay of the teleconference will be available through November 19, 2013 and can be heard by dialing (719) 457-0820, passcode 8332965 or on the investor relations portion of the company’s website, located at www.salem.cc.
Fourth Quarter 2013 Outlook
For the fourth quarter of 2013, we are projecting total revenue to decrease 0% to 2% over fourth quarter 2012 total revenue of $60.6 million. The decline is impacted by strong political revenue of $2.4 million in the fourth quarter of 2012. Excluding this political revenue, we would project revenue to increase 2% to 4%. We are also projecting operating expenses before gains or losses on the sale or disposal of assets, impairments and stock-based compensation expense to increase 0% to 3% as compared to the fourth quarter of 2012 operating expenses of $49.2 million.
Page | 4
About Salem Communications
Salem Communications Corporation is the largest commercial U.S. radio broadcasting company that provides programming targeted at audiences interested in Christian and conservative opinion content, as measured by the number of stations and audience coverage. Upon completion of all announced transactions, the company will own and/or operate a national portfolio of 101 radio stations in 39 markets, including 61 stations in 22 of the top 25 markets. Salem also programs theFamily Talk™ Christian-themed talk format on Sirius XM Radio, channel 131. Additionally the company operatesChristianradio.com.
Salem also ownsSalem Radio Network, a national radio network that syndicates talk, news and music programming to approximately 2,400 affiliated radio stations and Salem Media Representatives, a national media advertising sales firm with offices across the country.
In addition to its radio broadcast business, Salem owns an Internet and a publishing division. Salem Web Network is a provider of online Christian and conservative-themed content and streaming and includes websites such as Christian faith focused Christianity.com, Questions and Answers aboutJesus Christ at Jesus.org,Christian living focused Crosswalk.com®, onlineBible at BibleStudyTools.com,Christian videos at GodTube.com, a leading website providingchurch media at WorshipHouseMedia.com andChristian radio ministries online at OnePlace.com. Additionally Salem ownsconservative news leader Townhall.com™ andconservative political blog HotAir.com, providing conservative commentary, news and blogging. Salem Publishing™ circulates Christian and conservative magazines such as Homecoming® The Magazine, YouthWorker Journal™, The Singing News, FaithTalk Magazine, Preaching and Townhall Magazine™. Xulon Press™ is a provider ofself-publishing services targeting the Christian audience.
Company Contact:
Evan D. Masyr
Salem Communications
(805) 384-4512
evanm@salem.cc
Page | 5
Forward-Looking Statements
Statements used in this press release that relate to future plans, events, financial results, prospects or performance are forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those anticipated as a result of certain risks and uncertainties, including but not limited to the ability of Salem to close and integrate announced transactions, market acceptance of Salem’s radio station formats, competition from new technologies, adverse economic conditions, and other risks and uncertainties detailed from time to time in Salem's reports on Forms 10-K, 10-Q, 8-K and other filings filed with or furnished to the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Salem undertakes no obligation to update or revise any forward-looking statements to reflect new information, changed circumstances or unanticipated events.
(1)
Regulation G
Station operating income, Internet operating income and publishing operating income, EBITDA and Adjusted EBITDA are financial measures not prepared in accordance with generally accepted accounting principles (“GAAP”). Station operating income is defined as net broadcast revenues minus broadcast operating expenses. Internet operating income is defined as Internet revenue minus Internet operating expenses. Publishing operating income is defined as publishing revenue minus publishing operating expenses. EBITDA is defined as net income before interest, taxes, depreciation, amortization and change in fair value of interest rate swaps. Adjusted EBITDA is defined as EBITDA before gain or loss on the disposal of assets, impairment of indefinite-lived long-term assets including goodwill, impairment of long-lived assets and non-cash compensation expense. In addition, Salem has provided supplemental information as an attachment to this press release, reconciling these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with GAAP. The company believes these non-GAAP financial measures, when considered in conjunction with the most directly comparable GAAP financial measures, provide useful measures of the company’s operating performance.
Station operating income, Internet operating income and publishing operating income, EBITDA and Adjusted EBITDA are generally recognized by the broadcast industry as important measures of performance and are used by investors as well as analysts who report on the industry to provide meaningful comparisons between broadcast. Station operating income, Internet operating income and publishing operating income, EBITDA and Adjusted EBITDA are not a measure of liquidity or of performance in accordance with GAAP, and should be viewed as a supplement to and not a substitute for, or superior to, the company’s results of operations presented on a GAAP basis such as operating income and net income. In addition, Salem’s definitions of station operating income, Internet operating income and publishing operating income, EBITDA and Adjusted EBITDA are not necessarily comparable to similarly titled measures reported by other companies.
Page | 6
Salem Communications Corporation |
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Condensed Consolidated Statements of Operations |
|
|
|
|
|
|
|
| ||||||||||||||||||||||||
(in thousands, except share, per share and margin data) |
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
| Three Months Ended |
| Nine Months Ended | |||||||||||||||||||||||||||||
| September 30, |
| September 30, | |||||||||||||||||||||||||||||
|
| 2012 |
|
| 2013 |
|
| 2012 |
|
| 2013 | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||
Net broadcast revenue | $ | 45,895 |
| $ | 46,015 |
| $ | 136,224 |
| $ | 136,287 | |||||||||||||||||||||
Net Internet revenue |
| 7,800 |
|
| 9,390 |
|
| 23,269 |
|
| 29,012 | |||||||||||||||||||||
Net publishing revenue |
| 3,024 |
|
| 3,071 |
|
| 9,136 |
|
| 8,941 | |||||||||||||||||||||
Total revenue |
| 56,719 |
|
| 58,476 |
|
| 168,629 |
|
| 174,240 | |||||||||||||||||||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Broadcast operating expenses |
| 30,628 |
|
| 30,847 |
| �� | 90,289 |
|
| 91,258 | |||||||||||||||||||||
Internet operating expenses |
| 5,825 |
|
| 6,644 |
|
| 17,858 |
|
| 20,372 | |||||||||||||||||||||
Publishing operating expenses |
| 2,980 |
|
| 3,301 |
|
| 8,951 |
|
| 9,776 | |||||||||||||||||||||
Corporate expenses |
| 4,643 |
|
| 4,951 |
|
| 14,314 |
|
| 15,839 | |||||||||||||||||||||
Impairment of indefinite-lived long-term assets other than goodwill |
| ― |
|
| ― |
|
| ― |
|
| 345 | |||||||||||||||||||||
Impairment of goodwill |
| ― |
|
| ― |
|
| ― |
|
| 438 | |||||||||||||||||||||
Impairment of long-lived assets |
| ― |
|
| ― |
|
| 5,608 |
|
| ― | |||||||||||||||||||||
Depreciation and amortization |
| 3,577 |
|
| 3,784 |
|
| 10,775 |
|
| 11,389 | |||||||||||||||||||||
(Gain) loss on the sale or disposal of assets |
| 587 |
|
| (25) |
|
| 563 |
|
| (20) | |||||||||||||||||||||
Total operating expenses |
| 48,240 |
|
| 49,502 |
|
| 148,358 |
|
| 149,397 | |||||||||||||||||||||
Operating income from continuing operations |
| 8,479 |
|
| 8,974 |
|
| 20,271 |
|
| 24,843 | |||||||||||||||||||||
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Interest income |
| 24 |
|
| 16 |
|
| 83 |
|
| 52 | |||||||||||||||||||||
Interest expense |
| (6,127) |
|
| (3,770) |
|
| (18,787) |
|
| (13,212) | |||||||||||||||||||||
Change in the fair value of interest rate swap |
| ― |
|
| (1,033) |
|
| ― |
|
| 2,545 | |||||||||||||||||||||
Loss on early retirement of long-term debt |
| ― |
|
| (16) |
|
| (893) |
|
| (27,792) | |||||||||||||||||||||
Net miscellaneous income and (expenses) |
| 60 |
|
| 4 |
|
| 71 |
|
| 15 | |||||||||||||||||||||
Income (loss) from continuing operations before income taxes |
| 2,436 |
|
| 4,175 |
|
| 745 |
|
| (13,549) | |||||||||||||||||||||
Benefit from income taxes |
| (971) |
|
| (1,159) |
|
| (1,768) |
|
| (5,506) | |||||||||||||||||||||
Income (loss) from continuing operations |
| 3,407 |
|
| 5,334 |
|
| 2,513 |
|
| (8,043) | |||||||||||||||||||||
Loss from discontinued operations, net of tax |
| (39) |
|
| (11) |
|
| (94) |
|
| (26) | |||||||||||||||||||||
Net income (loss) | $ | 3,368 |
| $ | 5,323 |
| $ | 2,419 |
| $ | (8,069) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Basic income (loss) per share before discontinued operations | $ | 0.13 |
| $ | 0.21 |
| $ | 0.10 |
| $ | (0.32) | |||||||||||||||||||||
Income (loss) per share from discontinued operations, net of tax |
| ― |
|
| ― |
|
| ― |
|
| ― | |||||||||||||||||||||
Basic income (loss) per share after discontinued operations | $ | 0.13 |
| $ | 0.21 |
| $ | 0.10 |
| $ | (0.32) | |||||||||||||||||||||
Diluted income (loss) per share before discontinued operations | $ | 0.13 |
| $ | 0.21 |
| $ | 0.10 |
| $ | (0.32) | |||||||||||||||||||||
Income (loss) per share from discontinued operations, net of tax |
| ― |
|
| ― |
|
| ― |
|
| ― | |||||||||||||||||||||
Diluted income (loss) per share after discontinued operations | $ | 0.13 |
| $ | 0.21 |
| $ | 0.10 |
| $ | (0.32) | |||||||||||||||||||||
Dividends per share | $ | 0.03 |
| $ | ― |
| $ | 0.10 |
| $ | 0.10 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Basic weighted average shares outstanding |
| 24,663,027 |
|
| 25,126,858 |
|
| 24,528,091 |
|
| 24,832,140 | |||||||||||||||||||||
Diluted weighted average shares outstanding |
| 25,358,052 |
|
| 25,921,391 |
|
| 24,893,832 |
|
| 24,832,140 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Other data: |
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Station operating income | $ | 15,267 |
| $ | 15,168 |
| $ | 45,935 |
| $ | 45,029 | |||||||||||||||||||||
Station operating margin |
| 33.3% |
|
| 33.0% |
|
| 33.7% |
|
| 33.0% | |||||||||||||||||||||
Page | 7
Salem Communications Corporation | ||||||
Condensed Consolidated Balance Sheets | ||||||
(in thousands) | ||||||
|
|
| December 31, 2012 |
|
| September 30, 2013 |
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Cash |
| $ | 380 |
| $ | 1,426 |
Trade accounts receivable, net |
|
| 35,009 |
|
| 34,507 |
Deferred income taxes |
|
| 6,248 |
|
| 6,248 |
Other current assets |
|
| 5,858 |
|
| 7,658 |
Property, plant and equipment |
|
| 99,467 |
|
| 98,759 |
Intangible assets, net |
|
| 406,729 |
|
| 413,502 |
Interest rate swaps |
|
| ― |
|
| 2,545 |
Deferred financing costs |
|
| 4,002 |
|
| 4,291 |
Other assets |
|
| 3,669 |
|
| 2,153 |
Total assets |
| $ | 561,362 |
| $ | 571,089 |
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
Current liabilities |
| $ | 50,659 |
| $ | 30,342 |
Long-term debt and capital lease obligations |
|
| 248,872 |
|
| 290,844 |
Deferred income taxes |
|
| 47,593 |
|
| 41,778 |
Other liabilities |
|
| 8,169 |
|
| 9,975 |
Stockholders’ equity |
|
| 206,069 |
|
| 198,150 |
Total liabilities and stockholders’ equity |
| $ | 561,362 |
| $ | 571,089 |
Page | 8
Salem Communications Corporation | |||||||||||||||||||||
Supplemental Information | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
|
| Three Months Ended |
| Nine Months Ended | |||||||||||||||||
|
| September 30, |
| September 30, | |||||||||||||||||
|
|
| 2012 |
|
| 2013 |
|
| 2012 |
|
| 2013 | |||||||||
|
| (Unaudited) | |||||||||||||||||||
Capital Expenditures |
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Acquisition related / income producing |
| $ | 11 |
| $ | 202 |
| $ | 1,096 |
| $ | 571 | |||||||||
Maintenance |
|
| 1,550 |
|
| 2,358 |
|
| 5,311 |
|
| 7,221 | |||||||||
Total capital expenditures |
| $ | 1,561 |
| $ | 2,560 |
| $ | 6,407 |
| $ | 7,792 | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Reconciliation of Same Station Net Broadcast Revenue to Total Net Broadcast Revenue |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Net broadcast revenue – same station |
| $ | 45,878 |
| $ | 45,571 |
| $ | 136,145 |
| $ | 134,874 | |||||||||
Net broadcast revenue – acquisitions |
|
| 17 |
|
| 444 |
|
| 17 |
|
| 1,310 | |||||||||
Net broadcast revenue – dispositions |
|
| ― |
|
| ― |
|
| 6 |
|
| ― | |||||||||
Net broadcast revenue – format changes |
|
| ― |
|
| ― |
|
| 56 |
|
| 103 | |||||||||
Total net broadcast revenue |
| $ | 45,895 |
| $ | 46,015 |
| $ | 136,224 |
| $ | 136,287 | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Reconciliation of Same Station Broadcast Operating Expenses to Total Broadcast Operating Expenses |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Broadcast operating expenses – same station |
| $ | 30,602 |
| $ | 30,362 |
| $ | 90,112 |
| $ | 89,716 | |||||||||
Broadcast operating expenses revenue – acquisitions |
|
| 22 |
|
| 485 |
|
| 40 |
|
| 1,475 | |||||||||
Broadcast operating expenses – dispositions |
|
| 4 |
|
| ― |
|
| 74 |
|
| ― | |||||||||
Broadcast operating expenses – format changes |
|
| ― |
|
| ― |
|
| 63 |
|
| 67 | |||||||||
Total broadcast operating expenses |
| $ | 30,628 |
| $ | 30,847 |
| $ | 90,289 |
| $ | 91,258 | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Reconciliation of Same Station Operating Income to Total Station Operating Expenses |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Station operating income – same station |
| $ | 15,276 |
| $ | 15,209 |
| $ | 46,033 |
| $ | 45,158 | |||||||||
Station operating income – acquisitions |
|
| (5) |
|
| (41) |
|
| (23) |
|
| (165) | |||||||||
Station operating income – dispositions |
|
| (4) |
|
| ― |
|
| (68) |
|
| ― | |||||||||
Station operating income – format changes |
|
| ― |
|
| ― |
|
| (7) |
|
| 36 | |||||||||
Total station operating income |
| $ | 15,267 |
| $ | 15,168 |
| $ | 45,935 |
| $ | 45,029 | |||||||||
Page | 9
Salem Communications Corporation | ||||||||||||||||||||||
Supplemental Information | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||
|
|
| Three Months Ended |
|
| Nine Months Ended | ||||||||||||||||
|
|
| September 30, |
|
| September 30, | ||||||||||||||||
|
|
| 2012 |
|
| 2013 |
|
| 2012 |
|
| 2013 | ||||||||||
|
| (Unaudited) | ||||||||||||||||||||
Reconciliation of SOI and Internet Operating Income and Publishing Operating Income to Operating Income from Continuing Operations
|
|
|
|
|
|
|
|
| ||||||||||||||
Station operating income |
| $ | 15,267 |
| $ | 15,168 |
| $ | 45,935 |
| $ | 45,029 | ||||||||||
Internet operating income |
|
| 1,975 |
|
| 2,746 |
|
| 5,411 |
|
| 8,640 | ||||||||||
Publishing operating income (loss) |
| 44 |
|
| (230) |
|
| 185 |
|
| (835) | |||||||||||
Less: |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Corporate expenses |
|
| (4,643) |
|
| (4,951) |
|
| (14,314) |
|
| (15,839) | ||||||||||
Depreciation and amortization |
| (3,577) |
|
| (3,784) |
|
| (10,775) |
|
| (11,389) | |||||||||||
Impairment of indefinite-lived long-term assets other than goodwill |
| ― |
|
| ― |
|
| ― |
|
| (345) | |||||||||||
Impairment goodwill |
| ― |
|
| ― |
|
| ― |
|
| (438) | |||||||||||
Impairment of long-lived assets |
| ― |
|
| ― |
|
| (5,608) |
|
| ― | |||||||||||
(Gain) loss on the sale or disposal of assets |
| (587) |
|
| 25 |
|
| (563) |
|
| 20 | |||||||||||
Operating income from continuing operations |
| $ | 8,479 |
| $ | 8,974 |
| $ | 20,271 |
| $ | 24,843 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Reconciliation of Adjusted EBITDA to EBITDA to Net Income (Loss) |
|
|
|
|
|
|
|
|
| |||||||||||||
Adjusted EBITDA |
| $ | 13,002 |
| $ | 13,095 |
| $ | 38,283 |
| $ | 38,539 | ||||||||||
Less: |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Stock-based compensation |
| (299) |
|
| (358) |
|
| (995) |
|
| (1,529) | |||||||||||
Loss on early retirement of long-term debt |
| ― |
|
| (16) |
|
| (893) |
|
| (27,792) | |||||||||||
Discontinued operations, net of tax |
| (39) |
|
| (11) |
|
| (94) |
|
| (26) | |||||||||||
Impairment of indefinite-lived long-term assets other than goodwill |
| ― |
|
| ― |
|
| ― |
|
| (345) | |||||||||||
Impairment of goodwill |
| ― |
|
| ― |
|
| ― |
|
| (438) | |||||||||||
Impairment of long-lived assets |
| ― |
|
| ― |
|
| (5,608) |
|
| ― | |||||||||||
(Gain) loss on disposal of assets |
| (587) |
|
| 25 |
|
| (563) |
|
| 20 | |||||||||||
EBITDA |
|
| 12,077 |
|
| 12,735 |
|
| 30,130 |
|
| 8,429 | ||||||||||
Plus: |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Interest income |
|
| 24 |
|
| 16 |
|
| 83 |
|
| 52 | ||||||||||
Less: |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Depreciation and amortization |
| (3,577) |
|
| (3,784) |
|
| (10,775) |
|
| (11,389) | |||||||||||
Interest expense |
|
| (6,127) |
|
| (3,770) |
|
| (18,787) |
|
| (13,212) | ||||||||||
Change in the fair value of interest rate swap |
| ― |
|
| (1,033) |
|
| ― |
|
| 2,545 | |||||||||||
Benefit from income taxes |
| 971 |
|
| 1,159 |
|
| 1,768 |
|
| 5,506 | |||||||||||
Net income (loss) |
| $ | 3,368 |
| $ | 5,323 |
| $ | 2,419 |
| $ | (8,069) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Reconciliation of Adjusted EBITDA to Free Cash Flow |
|
|
|
|
|
|
|
|
| |||||||||||||
Adjusted EBITDA |
| $ | 13,002 |
| $ | 13,095 |
| $ | 38,283 |
| $ | 38,539 | ||||||||||
Less: |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Cash interest |
|
| (480) |
|
| (3,549) |
|
| (12,417) |
|
| (13,384) | ||||||||||
Cash taxes |
|
| (44) |
|
| (5) |
|
| (246) |
|
| (250) | ||||||||||
Capital expenditures |
|
| (1,561) |
|
| (2,560) |
|
| (6,407) |
|
| (7,792) | ||||||||||
Free Cash Flow |
| $ | 10,917 |
| $ | 6,981 |
| $ | 19,213 |
| $ | 17,113 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Selected Debt Data |
| Outstanding at September 30, 2013 |
|
| Applicable Interest Rate |
|
|
|
|
|
| |||||||||||
Term Loan B |
| $ | 292,000 |
|
| 4.50% |
|
|
|
|
|
| ||||||||||
Revolver |
|
| 2,460 |
|
| 5.25% |
|
|
|
|
|
| ||||||||||
Page | 10