Exhibit 99.1
Saga Communications, Inc.
Reports 2nd Quarter 2005 Results
Contact:
Samuel D. Bush
313/886-7070
Grosse Pointe Farms, MI — August 3, 2005 — Saga Communications, Inc. (NYSE-SGA) today reported that 2nd quarter 2005 net operating revenue increased 6.9% over the comparable period in 2004 to approximately $37.6 million and operating income decreased 6.2% to approximately $8.6 million. Net income decreased approximately $1.8 million to approximately $3.1 million ($.15 per fully diluted share) for the quarter ended June 30, 2005 compared to $4.9 million ($.23 per fully diluted share) for the comparable period in 2004. Net of taxes, approximately $767 thousand of this decrease in net income during the quarter was due to the disposition of a tower made obsolete by our DTV conversion project in Victoria, TX. Increased interest and healthcare expenses, net of taxes, decreased net income by approximately $425 thousand and $355 thousand, respectively, for the quarter. For the same period, station operating expense increased 12.3% to approximately $26.7 million (station operating expense includes depreciation and amortization attributable to the stations). On a same station basis for the quarter, net operating revenue increased 2.4% to approximately $36.0 million, operating income decreased 8.0% to $8.4 million and station operating expense increased 6.4% to $25.2 million.
For the six month period ended June 30, 2005, net operating revenue increased 7.9% over the comparable period in 2004 to approximately $69.4 million, operating income decreased 3.3% to approximately $13.9 million and net income was approximately $5.2 million ($.25 per fully diluted share) compared to $7.4 million ($.35 per fully diluted share) for the comparable period in 2004 primarily attributable to the 2nd quarter expense increases referenced above. For the same period, station operating expense increased 11.8% to approximately $51.4 million (station operating expense includes depreciation and amortization attributable to the stations). On a same station basis for the six months, net operating revenue increased 2.3% to approximately $64.7 million, operating income decreased 5.7% to $13.3 million and station operating expense increased 4.7% to $47.3 million.
Saga has been subjected to increased format competition in the Milwaukee, Columbus, Norfolk and Portland markets. To date, this increased competitive pressure has not materially impacted the Milwaukee or Columbus market’s financial performance. The financial results in the Norfolk and Portland markets, however, have been materially impacted due to the increased competition. Net revenue in these markets decreased approximately 15% compared to the 2nd quarter 2004. Combined, operating income for these two markets decreased $837 thousand from the comparable quarter in 2004. We believe that the financial impact on these markets will not be long term as rating data indicates that the impacted stations are beginning to return to previous levels of audience share. Excluding the results for the Norfolk and Portland markets, net revenue and operating income on a historical basis for the quarter increased approximately 11% and 4% respectively.
Capital expenditures in the second quarter of 2005 were approximately $3.5 million of which approximately $2.2 million was routine capital expenditures and $1.3 million resulted from other activities including $1.1 million as a result of acquisitions and our DTV related television projects. Future capital expenditures on DTV related projects are expected to be minimal. Previously, Saga estimated capital expenditures for the year to be approximately $9 million. Currently, we expect capital expenditures for the year to be approximately $10.5 million.
The attached Selected Supplemental Financial Data table discloses “as reported,” “same station” and “pro forma” information by segment. The “as reported” amounts reflect our historical financial results and include the results of operations for stations that we did not own for the entire comparable period. The “same station” amounts reflect only the results of operations for stations that we owned for the entire comparable period. The “pro forma” amounts assume the 2005 and 2004 acquisitions and dispositions occurred as of January 1, 2004.
Saga Communications utilizes certain financial measures that are not calculated in accordance with generally accepted accounting principles (GAAP) to assess its financial performance. Such non-GAAP measures include same station financial information and free cash flow. These non-GAAP measures are generally recognized by the broadcasting industry as measures of performance and are used by Saga to assess its financial performance including but not limited to evaluating individual station and market-level performance, evaluating overall operations and as a primary measure for incentive based compensation of executives and other members of management. Saga’s management believes these non-GAAP measures are used by analysts who report on the industry and by investors to provide meaningful comparisons between broadcasting groups, as well as an indicator of their market value. These measures are not measures of liquidity or of performance in accordance with GAAP, and should be viewed as a supplement to and not as a substitute for the results of operations presented on a GAAP basis including net operating revenue, operating income, and net income. Reconciliations for all of the non-GAAP financial measures to the most directly comparable GAAP measure are attached in the Selected Financial Data Non-GAAP Disclosures tables.
Saga Communications, Inc. is a broadcasting company whose business is devoted to acquiring, developing and operating broadcast properties. The company owns or operates broadcast properties in 26 markets, including 57 FM and 29 AM radio stations, 3 state radio networks, 2 farm radio networks, 5 television stations and 4 low-power television stations. As previously disclosed, Saga has entered into an agreement to acquire an FM station serving the Asheville, NC radio market. For additional information, contact us at (313) 886-7070 or visit our website atwww.sagacommunications.com.
Saga’s second quarter 2005 results conference call will be on Wednesday, August 3 at 2:00 PM. The dial in number for domestic calls is 800/230-1059. For international callers the number is 612/288-0318. The call can be replayed for 7 days by calling domestically 800/475-6701 or internationally 320/365-3844 and referring to access code 789870. Thereafter, a transcript of the call will be available on our website.
This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words such as “believes,” “expects,” “anticipates,” “guidance” and similar expressions are intended to identify forward-looking statements. Key risks, including risks associated with Saga’s ability to effectively integrate the stations it acquires and the impact of federal regulation on Saga’s business, are described in the reports Saga Communications, Inc. periodically files with the U.S. Securities and Exchange Commission. Readers should note that these statements may be impacted by several factors, including national and local economic changes and changes in the radio and television broadcast industry in general, as well as Saga’s actual performance. Results may vary from those stated herein and Saga undertakes no obligation to update the information contained here.
Saga Communications, Inc.
Selected Consolidated Financial Data
For The Three and Six Month Periods
Ended June 30, 2005 and 2004
(amounts in 000’s except per share data)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | Six Months Ended |
| | | June 30, | | June 30, |
| | | 2005 | | 2004 | | 2005 | | 2004 |
| | | |
Operating Results | | | | | | | | | | | | | | | | |
| Net operating revenue | | $ | 37,554 | | | $ | 35,127 | | | $ | 69,384 | | | $ | 64,300 | |
| Station operating expense | | | 26,656 | | | | 23,733 | | | | 51,354 | | | | 45,918 | |
| Corporate general and administrative | | | 2,348 | | | | 2,279 | | | | 4,126 | | | | 4,011 | |
| | | |
| Operating income | | | 8,550 | | | | 9,115 | | | | 13,904 | | | | 14,371 | |
| Interest expense | | | 1,806 | | | | 1,085 | | | | 3,429 | | | | 2,180 | |
| Other expense, net | | | 1,471 | | | | 65 | | | | 1,538 | | | | 73 | |
| | | |
| Income before income tax | | | 5,273 | | | | 7,965 | | | | 8,937 | | | | 12,118 | |
| Income tax expense | | | 2,201 | | | | 3,104 | | | | 3,700 | | | | 4,726 | |
| | | |
| Net income | | $ | 3,072 | | | $ | 4,861 | | | $ | 5,237 | | | $ | 7,392 | |
| | | |
| Earnings per share: | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.15 | | | $ | 0.23 | | | $ | 0.26 | | | $ | 0.36 | |
| | | |
| Diluted | | $ | 0.15 | | | $ | 0.23 | | | $ | 0.25 | | | $ | 0.35 | |
| | | |
| Weighted average common shares | | | 20,388 | | | | 20,816 | | | | 20,508 | | | | 20,813 | |
| Weighted average common shares and common equivalents | | | 20,596 | | | | 21,285 | | | | 20,771 | | | | 21,283 | |
| | | | | | | | | | | | | | | | | |
Free Cash Flow | | | | | | | | | | | | | | | | |
| Net Income | | $ | 3,072 | | | $ | 4,861 | | | $ | 5,237 | | | $ | 7,392 | |
| Plus: Depreciation and amortization: | | | | | | | | | | | | | | | | |
| Station | | | 2,138 | | | | 1,726 | | | | 4,233 | | | | 3,393 | |
| Corporate | | | 49 | | | | 50 | | | | 99 | | | | 99 | |
| Deferred tax provision | | | 1,029 | | | | 1,274 | | | | 1,590 | | | | 1,939 | |
| Less: Capital expenditures | | | (3,534 | ) | | | (1,732 | ) | | | (7,801 | ) | | | (4,263 | ) |
| | | |
| Free cash flow | | $ | 2,754 | | | $ | 6,179 | | | $ | 3,358 | | | $ | 8,560 | |
| | | |
| | | | | | | | | | | | | | | | | |
Balance Sheet Data | | | | | | | | | | | | | | | | |
| Working capital | | | | | | | | | | $ | 23,673 | | | $ | 18,561 | |
| Net fixed assets | | | | | | | | | | | 73,301 | | | | 63,718 | |
| Net intangible and other assets | | | | | | | | | | | 205,654 | | | | 174,421 | |
| Total assets | | | | | | | | | | | 317,868 | | | | 270,918 | |
| Long term debt (including current portion of $1,061 and $0, respectively) | | | | | | | | | | | 155,911 | | | | 121,161 | |
| Stockholders’ equity | | | | | | | | | | | 120,223 | | | | 113,522 | |
Saga Communications, Inc.
Selected Supplemental Financial Data
For the Three Months Ended
June 30, 2005 and 2004
(amounts in 000’s except per share data)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | As-Reported | | | Same Station | | | Pro Forma (1) | |
| Consolidated | | Three Months Ended | | | Three Months Ended | | | Three Months Ended | |
| | | June 30, | | | June 30, | | | June 30, | |
| | | 2005 | | | 2004 | | | 2005 | | | 2004 | | | 2005 | | | 2004 | |
| Net operating revenue | | $ | 37,554 | | | $ | 35,127 | | | $ | 35,971 | | | $ | 35,127 | | | $ | 38,000 | | | $ | 37,022 | |
| Station operating expense | | | 26,656 | | | | 23,733 | | | | 25,241 | | | | 23,733 | | | | 27,030 | | | | 25,401 | |
| Corporate general and administrative | | | 2,348 | | | | 2,279 | | | | 2,348 | | | | 2,279 | | | | 2,348 | | | | 2,279 | |
| | | | | | | | | | | | | | | | | | | |
| Operating income | | | 8,550 | | | | 9,115 | | | $ | 8,382 | | | $ | 9,115 | | | | 8,622 | | | | 9,342 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Interest expense | | | 1,806 | | | | 1,085 | | | | | | | | | | | | 1,894 | | | | 1,418 | |
| Other expense, net | | | 1,471 | | | | 65 | | | | | | | | | | | | 1,466 | | | | 57 | |
| Income tax expense | | | 2,201 | | | | 3,104 | | | | | | | | | | | | 2,196 | | | | 3,067 | |
| | | | | | | | | | | | | | | | | | | | | |
| Net income | | $ | 3,072 | | | $ | 4,861 | | | | | | | | | | | $ | 3,066 | | | $ | 4,800 | |
| | | | | | | | | | | | | | | | | | | | | |
| Earnings per share: | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.15 | | | $ | 0.23 | | | | | | | | | | | $ | 0.15 | | | $ | 0.23 | |
| | | | | | | | | | | | | | | | | | | | | |
| Diluted | | $ | 0.15 | | | $ | 0.23 | | | | | | | | | | | $ | 0.15 | | | $ | 0.22 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | As-Reported | | | Same Station | | | Pro Forma (1) | |
| Radio Segment | | Three Months Ended | | | Three Months Ended | | | Three Months Ended | |
| | | June 30, | | | June 30, | | | June 30, | |
| | | 2005 | | | 2004 | | | 2005 | | | 2004 | | | 2005 | | | 2004 | |
| Net operating revenue | | $ | 33,605 | | | $ | 31,362 | | | $ | 32,022 | | | $ | 31,362 | | | $ | 34,051 | | | $ | 33,257 | |
| Station operating expense | | | 23,316 | | | | 20,469 | | | | 21,901 | | | | 20,469 | | | | 23,690 | | | | 22,137 | |
| | | | | | | | | | | | | | | | | | | |
| Operating income | | $ | 10,289 | | | $ | 10,893 | | | $ | 10,121 | | | $ | 10,893 | | | $ | 10,361 | | | $ | 11,120 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | As-Reported | | | Same Station | | | Pro Forma (1) | |
| Television Segment | | Three Months Ended | | | Three Months Ended | | | Three Months Ended | |
| | | June 30, | | | June 30, | | | June 30, | |
| | | 2005 | | | 2004 | | | 2005 | | | 2004 | | | 2005 | | | 2004 | |
| Net operating revenue | | $ | 3,949 | | | $ | 3,765 | | | $ | 3,949 | | | $ | 3,765 | | | $ | 3,949 | | | $ | 3,765 | |
| Station operating expense | | | 3,340 | | | | 3,264 | | | | 3,340 | | | | 3,264 | | | | 3,340 | | | | 3,264 | |
| | | | | | | | | | | | | | | | | | | |
| Operating income | | $ | 609 | | | $ | 501 | | | $ | 609 | | | $ | 501 | | | $ | 609 | | | $ | 501 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | As-Reported | | | Same Station | | | Pro Forma (1) | |
| | | Three Months Ended | | | Three Months Ended | | | Three Months Ended | |
| Depreciation and amortization | | June 30, | | | June 30, | | | June 30, | |
| by segment | | 2005 | | | 2004 | | | 2005 | | | 2004 | | | 2005 | | | 2004 | |
| Radio Segment | | $ | 1,716 | | | $ | 1,300 | | | $ | 1,389 | | | $ | 1,300 | | | $ | 1,808 | | | $ | 1,781 | |
| Television Segment | | | 422 | | | | 426 | | | | 422 | | | | 426 | | | | 422 | | | | 426 | |
| Corporate and Other | | | 49 | | | | 50 | | | | 49 | | | | 50 | | | | 49 | | | | 50 | |
| | | | | | | | | | | | | | | | | | | |
| | | $ | 2,187 | | | $ | 1,776 | | | $ | 1,860 | | | $ | 1,776 | | | $ | 2,279 | | | $ | 2,257 | |
| | | | | | | | | | | | | | | | | | | |
| (1) | | Pro Forma results assume all acquisitions and dispositions in 2004 and 2005 occurred as of January 1, 2004. |
Saga Communications, Inc.
Selected Supplemental Financial Data
For the Six Months Ended
June 30, 2005 and 2004
(amounts in 000’s except per share data)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | As-Reported | | | Same Station | | | Pro Forma (1) | |
| Consolidated | | Six Months Ended | | | Six Months Ended | | | Six Months Ended | |
| | | June 30, | | | June 30, | | | June 30, | |
| | | 2005 | | | 2004 | | | 2005 | | | 2004 | | | 2005 | | | 2004 | |
| Net operating revenue | | $ | 69,384 | | | $ | 64,300 | | | $ | 64,697 | | | $ | 63,253 | | | $ | 70,397 | | | $ | 68,627 | |
| Station operating expense | | | 51,354 | | | | 45,918 | | | | 47,270 | | | | 45,132 | | | | 52,311 | | | | 49,709 | |
| Corporate general and administrative | | | 4,126 | | | | 4,011 | | | | 4,126 | | | | 4,011 | | | | 4,126 | | | | 4,011 | |
| | | | | | | | | | | | | | | | | | | |
| Operating income | | $ | 13,904 | | | $ | 14,371 | | | $ | 13,301 | | | $ | 14,110 | | | $ | 13,960 | | | $ | 14,907 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Interest expense | | | 3,429 | | | | 2,180 | | | | | | | | | | | | 3,649 | | | | 2,846 | |
| Other expense, net | | | 1,538 | | | | 73 | | | | | | | | | | | | 1,523 | | | | 56 | |
| Income tax expense | | | 3,700 | | | | 4,726 | | | | | | | | | | | | 3,643 | | | | 4,690 | |
| | | | | | | | | | | | | | | | | | | | | |
| Net income | | $ | 5,237 | | | $ | 7,392 | | | | | | | | | | | $ | 5,145 | | | $ | 7,315 | |
| | | | | | | | | | | | | | | | | | | | | |
| Earnings per share: | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.26 | | | $ | 0.36 | | | | | | | | | | | $ | 0.25 | | | $ | 0.35 | |
| | | | | | | | | | | | | | | | | | | | | |
| Diluted | | $ | 0.25 | | | $ | 0.35 | | | | | | | | | | | $ | 0.25 | | | $ | 0.34 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | As-Reported | | | Same Station | | | Pro Forma (1) | |
| Radio Segment | | Six Months Ended | | | Six Months Ended | | | Six Months Ended | |
| | | June 30, | | | June 30, | | | June 30, | |
| | | 2005 | | | 2004 | | | 2005 | | | 2004 | | | 2005 | | | 2004 | |
| Net operating revenue | | $ | 61,977 | | | $ | 57,381 | | | $ | 57,290 | | | $ | 56,334 | | | $ | 62,990 | | | $ | 61,708 | |
| Station operating expense | | | 44,725 | | | | 39,618 | | | | 40,641 | | | | 38,832 | | | | 45,682 | | | | 43,409 | |
| | | | | | | | | | | | | | | | | | | |
| Operating income | | $ | 17,252 | | | $ | 17,763 | | | $ | 16,649 | | | $ | 17,502 | | | $ | 17,308 | | | $ | 18,299 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | As-Reported | | | Same Station | | Pro Forma (1) | |
| Television Segment | | Six Months Ended | | | Six Months Ended | | | Six Months Ended | |
| | | June 30, | | | June 30, | | | June 30, | |
| | | 2005 | | | 2004 | | | 2005 | | | 2004 | | | 2005 | | | 2004 | |
| Net operating revenue | | $ | 7,407 | | | $ | 6,919 | | | $ | 7,407 | | | $ | 6,919 | | | $ | 7,407 | | | $ | 6,919 | |
| Station operating expense | | | 6,629 | | | | 6,300 | | | | 6,629 | | | | 6,300 | | | | 6,629 | | | | 6,300 | |
| | | | | | | | | | | | | | | | | | | |
| Operating income | | $ | 778 | | | $ | 619 | | | $ | 778 | | | $ | 619 | | | $ | 778 | | | $ | 619 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | As-Reported | | | Same Station | | | Pro Forma (1) | |
| | | Six Months Ended | | | Six Months Ended | | | Six Months Ended | |
| Depreciation and amortization | | June 30, | | | June 30, | | | June 30, | |
| by segment | | 2005 | | | 2004 | | | 2005 | | | 2004 | | | 2005 | | | 2004 | |
| Radio Segment | | $ | 3,369 | | | $ | 2,552 | | | $ | 2,672 | | | $ | 2,530 | | | $ | 3,599 | | | $ | 3,530 | |
| Television Segment | | | 864 | | | | 841 | | | | 864 | | | | 841 | | | | 864 | | | | 841 | |
| Corporate and Other | | | 99 | | | | 99 | | | | 99 | | | | 99 | | | | 99 | | | | 99 | |
| | | | | | | | | | | | | | | | | | | |
| | | $ | 4,332 | | | $ | 3,492 | | | $ | 3,635 | | | $ | 3,470 | | | $ | 4,562 | | | $ | 4,470 | |
| | | | | | | | | | | | | | | | | | | |
| (1) | | Pro Forma results assume all acquisitions and dispositions in 2004 and 2005 occurred as of January 1, 2004. |
Saga Communications, Inc.
Selected Supplemental Financial Data
Quarterly Proforma Information
As of June 30, 2005
(amounts in 000’s except per share data)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Pro Forma (1) | | Pro Forma (1) | | Pro Forma (1) | | Pro Forma (1) |
| Consolidated | | Three Months Ended | | Three Months Ended | | Three Months Ended | | Three Months Ended |
| | | March 31, | | June 30, | | September 30, | | December 31, |
| | | 2005 | | 2004 | | 2005 | | 2004 | | 2004 | | 2004 |
| Net operating revenue | | $ | 32,397 | | | $ | 31,605 | | | $ | 38,000 | | | $ | 37,022 | | | $ | 36,071 | | | $ | 38,045 | |
| Station operating expense | | | 25,281 | | | | 24,308 | | | | 27,030 | | | | 25,401 | | | | 25,506 | | | | 26,526 | |
| Corporate general and administrative | | | 1,778 | | | | 1,732 | | | | 2,348 | | | | 2,279 | | | | 1,927 | | | | 2,405 | |
| | | | | | | | | | | | | |
| Operating income | | | 5,338 | | | | 5,565 | | | | 8,622 | | | | 9,342 | | | | 8,638 | | | | 9,114 | |
| Interest expense | | | 1,755 | | | | 1,428 | | | | 1,894 | | | | 1,418 | | | | 1,369 | | | | 1,639 | |
| Other (income) expense, net | | | 57 | | | | (1 | ) | | | 1,466 | | | | 57 | | | | 202 | | | | (259 | ) |
| Income tax expense | | | 1,447 | | | | 1,623 | | | | 2,196 | | | | 3,067 | | | | 2,759 | | | | 3,539 | |
| | | | | | | | | | | | | |
| Net income | | $ | 2,079 | | | $ | 2,515 | | | $ | 3,066 | | | $ | 4,800 | | | $ | 4,308 | | | $ | 4,195 | |
| | | | | | | | | | | | | |
| Earnings per share: | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.10 | | | $ | 0.12 | | | $ | 0.15 | | | $ | 0.23 | | | $ | 0.20 | | | $ | 0.20 | |
| | | | | | | | | | | | | |
| Diluted | | $ | 0.10 | | | $ | 0.12 | | | $ | 0.15 | | | $ | 0.22 | | | $ | 0.20 | | | $ | 0.20 | |
| | | | | | | | | | | | | |
| |
| | | Pro Forma (1) | | Pro Forma (1) | | Pro Forma (1) | | Pro Forma (1) |
| Radio Segment | | Three Months Ended | | Three Months Ended | | Three Months Ended | | Three Months Ended |
| | | March 31, | | June 30, | | September 30, | | December 31, |
| | | 2005 | | 2004 | | 2005 | | 2004 | | 2004 | | 2004 |
| Net operating revenue | | $ | 28,939 | | | $ | 28,451 | | | $ | 34,051 | | | $ | 33,257 | | | $ | 32,425 | | | $ | 34,157 | |
| Station operating expense | | | 21,992 | | | | 21,272 | | | | 23,690 | | | | 22,137 | | | | 22,281 | | | | 23,190 | |
| | | | | | | | | | | | | |
| Operating income | | $ | 6,947 | | | $ | 7,179 | | | $ | 10,361 | | | $ | 11,120 | | | $ | 10,144 | | | $ | 10,967 | |
| | | | | | | | | | | | | |
| |
| | | Pro Forma (1) | | Pro Forma (1) | | Pro Forma (1) | | Pro Forma (1) |
| | | Three Months Ended | | Three Months Ended | | Three Months Ended | | Three Months Ended |
| | | March 31, | | June 30, | | September 30, | | December 31, |
| Television Segment | | 2005 | | 2004 | | 2005 | | 2004 | | 2004 | | 2004 |
| Net operating revenue | | $ | 3,458 | | | $ | 3,154 | | | $ | 3,949 | | | $ | 3,765 | | | $ | 3,646 | | | $ | 3,888 | |
| Station operating expense | | | 3,289 | | | | 3,036 | | | | 3,340 | | | | 3,264 | | | | 3,225 | | | | 3,336 | |
| | | | | | | | | | | | | |
| Operating income | | $ | 169 | | | $ | 118 | | | $ | 609 | | | $ | 501 | | | $ | 421 | | | $ | 552 | |
| | | | | | | | | | | | | |
| |
| | | Pro Forma (1) | | Pro Forma (1) | | Pro Forma (1) | | Pro Forma (1) |
| | | Three Months Ended | | Three Months Ended | | Three Months Ended | | Three Months Ended |
| Depreciation and amortization | | March 31, | | June 30, | | September 30, | | December 31, |
| by segment | | 2005 | | 2004 | | 2005 | | 2004 | | 2004 | | 2004 |
| Radio Segment | | $ | 1,791 | | | $ | 1,749 | | | $ | 1,808 | | | $ | 1,781 | | | $ | 1,785 | | | $ | 1,837 | |
| Television Segment | | | 442 | | | | 415 | | | | 422 | | | | 426 | | | | 422 | | | | 454 | |
| Corporate and Other | | | 50 | | | | 49 | | | | 49 | | | | 50 | | | | 49 | | | | 50 | |
| | | | | | | | | | | | | |
| | | $ | 2,283 | | | $ | 2,213 | | | $ | 2,279 | | | $ | 2,257 | | | $ | 2,256 | | | $ | 2,341 | |
| | | | | | | | | | | | | |
| | |
| (1) | | Pro Forma results assume all acquisitions and dispositions in 2004 and 2005 occurred as of January 1, 2004. |
Saga Communications, Inc.
Selected Financial Data Non-GAAP Disclosures
For the Three Months Ended
June 30, 2005 and 2004
(amounts in 000’s except per share data)
(Unaudited)
Reconciliation of As-Reported (historical) information to Same Station Operating Income
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Adjustment | | | | | | | | | | Adjustment | | |
| | | As-Reported | | For Acquisitions | | Same Station | | As-Reported | | For Acquisitions | | Same Station |
| | | Three Months | | and Dispositions | | Three Months | | Three Months | | and Dispositions | | Three Months |
| Consolidated | | Ended | | Not Included in | | Ended | | Ended | | Not Included in | | Ended |
| | | June 30, | | Entire Comparable | | June 30, | | June 30, | | Entire Comparable | | June 30, |
| | | 2005 | | Period | | 2005 | | 2004 | | Period | | 2004 |
| Net operating revenue | | $ | 37,554 | | | ($ | 1,583 | ) | | $ | 35,971 | | | $ | 35,127 | | | $ | — | | | $ | 35,127 | |
| Station operating expense | | | 26,656 | | | | (1,415 | ) | | | 25,241 | | | | 23,733 | | | | — | | | | 23,733 | |
| Corporate general and administrative | | | 2,348 | | | | — | | | | 2,348 | | | | 2,279 | | | | — | | | | 2,279 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating income | | $ | 8,550 | | | ($ | 168 | ) | | $ | 8,382 | | | $ | 9,115 | | | $ | — | | | $ | 9,115 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| | | | | | | Adjustment | | | | | | | | | | Adjustment | | |
| | | As-Reported | | For Acquisitions | | Same Station | | As-Reported | | For Acquisitions | | Same Station |
| | | Three Months | | and Dispositions | | Three Months | | Three Months | | and Dispositions | | Three Months |
| Radio Segment | | Ended | | Not Included in | | Ended | | Ended | | Not Included in | | Ended |
| | | June 30, | | Entire Comparable | | June 30, | | June 30, | | Entire Comparable | | June 30, |
| | | 2005 | | Period | | 2005 | | 2004 | | Period | | 2004 |
| Net operating revenue | | $ | 33,605 | | | ($ | 1,583 | ) | | $ | 32,022 | | | $ | 31,362 | | | $ | — | | | $ | 31,362 | |
| Station operating expense | | | 23,316 | | | | (1,415 | ) | | | 21,901 | | | | 20,469 | | | | — | | | | 20,469 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating income | | $ | 10,289 | | | ($ | 168 | ) | | $ | 10,121 | | | $ | 10,893 | | | $ | — | | | $ | 10,893 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| | | | | | | Adjustment | | | | | | | | | | Adjustment | | |
| | | As-Reported | | For Acquisitions | | Same Station | | As-Reported | | For Acquisitions | | Same Station |
| | | Three Months | | and Dispositions | | Three Months | | Three Months | | and Dispositions | | Three Months |
| Television Segment | | Ended | | Not Included in | | Ended | | Ended | | Not Included in | | Ended |
| | | June 30, | | Entire Comparable | | June 30, | | June 30, | | Entire Comparable | | June 30, |
| | | 2005 | | Period | | 2005 | | 2004 | | Period | | 2004 |
| Net operating revenue | | $ | 3,949 | | | $ | — | | | $ | 3,949 | | | $ | 3,765 | | | $ | — | | | $ | 3,765 | |
| Station operating expense | | $ | 3,340 | | | | — | | | $ | 3,340 | | | $ | 3,264 | | | | — | | | $ | 3,264 | |
| �� | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating income | | $ | 609 | | | $ | — | | | $ | 609 | | | $ | 501 | | | $ | — | | | $ | 501 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Saga Communications, Inc.
Selected Financial Data Non-GAAP Disclosures
For the Six Months Ended
June 30, 2005 and 2004
(amounts in 000’s except per share data)
(Unaudited)
Reconciliation of As-Reported (historical) information to Same Station Operating Income
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Adjustment | | | | | | | | | | Adjustment | | |
| | | As-Reported | | For Acquisitions | | Same Station | | As-Reported | | For Acquisitions | | Same Station |
| | | Six Months | | and Dispositions | | Six Months | | Six Months | | and Dispositions | | Six Months |
| Consolidated | | Ended | | Not Included in | | Ended | | Ended | | Not Included in | | Ended |
| | | June 30, | | Entire Comparable | | June 30, | | June 30, | | Entire Comparable | | June 30, |
| | | 2005 | | Period | | 2005 | | 2004 | | Period | | 2004 |
| Net operating revenue | | $ | 69,384 | | | ($ | 4,687 | ) | | $ | 64,697 | | | $ | 64,300 | | | ($ | 1,047 | ) | | $ | 63,253 | |
| Station operating expense | | | 51,354 | | | | (4,084 | ) | | | 47,270 | | | | 45,918 | | | | (786 | ) | | | 45,132 | |
| Corporate general and administrative | | | 4,126 | | | | — | | | | 4,126 | | | | 4,011 | | | | — | | | | 4,011 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating income | | $ | 13,904 | | | ($ | 603 | ) | | $ | 13,301 | | | $ | 14,371 | | | ($ | 261 | ) | | $ | 14,110 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| | | | | | | Adjustment | | | | | | | | | | Adjustment | | |
| | | As-Reported | | For Acquisitions | | Same Station | | As-Reported | | For Acquisitions | | Same Station |
| | | Six Months | | and Dispositions | | Six Months | | Six Months | | and Dispositions | | Six Months |
| Radio Segment | | Ended | | Not Included in | | Ended | | Ended | | Not Included in | | Ended |
| | | June 30, | | Entire Comparable | | June 30, | | June 30, | | Entire Comparable | | June 30, |
| | | 2005 | | Period | | 2005 | | 2004 | | Period | | 2004 |
| Net operating revenue | | $ | 61,977 | | | ($ | 4,687 | ) | | $ | 57,290 | | | $ | 57,381 | | | ($ | 1,047 | ) | | $ | 56,334 | |
| Station operating expense | | | 44,725 | | | | (4,084 | ) | | | 40,641 | | | | 39,618 | | | | (786 | ) | | | 38,832 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating income | | $ | 17,252 | | | ($ | 603 | ) | | $ | 16,649 | | | $ | 17,763 | | | ($ | 261 | ) | | $ | 17,502 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| | | | | | | Adjustment | | | | | | | | | | Adjustment | | |
| | | As-Reported | | For Acquisitions | | Same Station | | As-Reported | | For Acquisitions | | Same Station |
| | | Six Months | | and Dispositions | | Six Months | | Six Months | | and Dispositions | | Six Months |
| Television Segment | | Ended | | Not Included in | | Ended | | Ended | | Not Included in | | Ended |
| | | June 30, | | Entire Comparable | | June 30, | | June 30, | | Entire Comparable | | June 30, |
| | | 2005 | | Period | | 2005 | | 2004 | | Period | | 2004 |
| Net operating revenue | | $ | 7,407 | | | $ | — | | | $ | 7,407 | | | $ | 6,919 | | | $ | — | | | $ | 6,919 | |
| Station operating expense | | | 6,629 | | | | — | | | | 6,629 | | | | 6,300 | | | | — | | | | 6,300 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating income | | $ | 778 | | | $ | — | | | $ | 778 | | | $ | 619 | | | $ | — | | | $ | 619 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
