Exhibit 99.1
Saga Communications, Inc.
Reports 2nd Quarter 2006 Results
Contact:
Samuel D. Bush
313/886-7070
Grosse Pointe Farms, MI — August 8, 2006 — Saga Communications, Inc. (NYSE-SGA) today reported that 2nd quarter 2006 net operating revenue increased 0.5% over the comparable period in 2005 to $37.8 million and operating income increased 3.8% to $8.9 million. Net income increased $.9 million to $4.0 million ($.19 per fully diluted share) for the quarter ended June 30, 2006 compared to $3.1 million ($.15 per fully diluted share) for the comparable period in 2005. For the same period, station operating expense decreased 1.1% to $26.4 million (station operating expense includes depreciation and amortization attributable to the stations). On a same station basis for the quarter, net operating revenue decreased 0.7% to $37.0 million, operating income increased 2.8% to $8.7 million and station operating expense decreased 2.4% to $25.8 million.
For the six month period ended June 30, 2006, net operating revenue decreased 0.7% over the comparable period in 2005 to $68.9 million, operating income decreased 3.7% to $13.4 million and net income increased to $5.5 million ($.27 per fully diluted share) compared to $5.2 million ($.25 per fully diluted share) for the comparable period in 2005. For the same period, station operating expense decreased 0.6% to approximately $51.1 million (station operating expense includes depreciation and amortization attributable to the stations). On a same station basis for the six months, net operating revenue decreased 2.2% to $67.6 million, operating income decreased 4.4% to $13.2 million and station operating expense decreased 2.5% to $49.9 million.
Capital expenditures in the second quarter of 2006 were $2.8 million of which $0.3 million were as a result of acquisitions, $0.6 million were related to digital radio and $0.5 million were related to digital television. For the six months capital expenditures were $4.7 million of which $0.7 million were as a result of acquisitions, $0.7 million were related to digital radio and $0.9 million were related to digital television. Currently, we expect capital expenditures for the year to be approximately $9.5 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 2006 and 2005 acquisitions and dispositions occurred as of January 1, 2005.
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 58 FM and 30 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 2006 results conference call will be on Tuesday, August 8 at 2:00 PM. The dial in number for domestic calls is 800/230-1059. For international callers the number is 612/332-0226. The call can be replayed for 7 days by calling domestically 800/475-6701 or internationally 320/365-3844 and referring to access code 836137. 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, 2006 and 2005
(amounts in 000’s except per share data)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30, | | | June 30, | |
| | | 2006 | | | 2005 | | | 2006 | | | 2005 | |
Operating Results | | | | | | | | | | | | | | | | |
| Net operating revenue | | $ | 37,745 | | | $ | 37,554 | | | $ | 68,936 | | | $ | 69,384 | |
| Station operating expense | | | 26,369 | | | | 26,656 | | | | 51,072 | | | | 51,354 | |
| Corporate general and administrative | | | 2,499 | | | | 2,348 | | | | 4,480 | | | | 4,126 | |
| | | |
| Operating income | | | 8,877 | | | | 8,550 | | | | 13,384 | | | | 13,904 | |
| Interest expense | | | 2,355 | | | | 1,806 | | | | 4,632 | | | | 3,429 | |
| Other (income) expense, net | | | (215 | ) | | | 1,471 | | | | (570 | ) | | | 1,538 | |
| | | |
| Income before income tax | | | 6,737 | | | | 5,273 | | | | 9,322 | | | | 8,937 | |
| Income tax expense | | | 2,749 | | | | 2,201 | | | | 3,809 | | | | 3,700 | |
| | | |
| Net income | | $ | 3,988 | | | $ | 3,072 | | | $ | 5,513 | | | $ | 5,237 | |
| | | |
| Earnings per share: | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.19 | | | $ | 0.15 | | | $ | 0.27 | | | $ | 0.26 | |
| | | |
| Diluted | | $ | 0.19 | | | $ | 0.15 | | | $ | 0.27 | | | $ | 0.25 | |
| | | |
| Weighted average common shares | | | 20,575 | | | | 20,388 | | | | 20,528 | | | | 20,508 | |
| Weighted average common shares and common share equivalents | | | 20,593 | | | | 20,596 | | | | 20,547 | | | | 20,771 | |
| | | | | | | | | | | | | | | | | |
Free Cash Flow | | | | | | | | | | | | | | | | |
| Net Income | | $ | 3,988 | | | $ | 3,072 | | | $ | 5,513 | | | $ | 5,237 | |
| Plus: Depreciation and amortization: | | | | | | | | | | | | | | | | |
| Station | | | 1,950 | | | | 2,138 | | | | 3,881 | | | | 4,233 | |
| Corporate | | | 48 | | | | 49 | | | | 96 | | | | 99 | |
| Deferred tax provision | | | 1,311 | | | | 1,029 | | | | 1,771 | | | | 1,590 | |
| Other (income) expense, net | | | (215 | ) | | | 1,471 | | | | (570 | ) | | | 1,538 | |
| Non-cash compensation | | | 369 | | | | 84 | | | | 599 | | | | 109 | |
| Less: Capital expenditures | | | (2,745 | ) | | | (3,121 | ) | | | (4,712 | ) | | | (7,388 | ) |
| | | |
| Free cash flow | | $ | 4,706 | | | $ | 4,722 | | | $ | 6,578 | | | $ | 5,418 | |
| | | |
| | | | | | | | | | | | | | | | | |
Balance Sheet Data | | | | | | | | | | | | | | | | |
| Working capital | | | | | | | | | | $ | 21,755 | | | $ | 23,673 | |
| Net fixed assets | | | | | | | | | | | 70,337 | | | | 73,301 | |
| Net intangible assets and other assets | | | | | | | | | | | 208,203 | | | | 205,654 | |
| Total assets | | | | | | | | | | | 316,783 | | | | 317,868 | |
| Long term debt (including current portion of $0 and $1,061, respectively) | | | | | | | | | | | 136,911 | | | | 155,911 | |
| Stockholders’ equity | | | | | | | | | | | 131,210 | | | | 120,223 | |
Saga Communications, Inc.
Selected Supplemental Financial Data
For the Three Months Ended
June 30, 2006 and 2005
(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, | |
| | | 2006 | | | 2005 | | | 2006 | | | 2005 | | | 2006 | | | 2005 | |
| | |
| Net operating revenue | | $ | 37,745 | | | $ | 37,554 | | | $ | 37,026 | | | $ | 37,286 | | | $ | 37,745 | | | $ | 38,000 | |
| Station operating expense | | | 26,369 | | | | 26,656 | | | | 25,801 | | | | 26,447 | | | | 26,369 | | | | 27,030 | |
| Corporate general and administrative | | | 2,499 | | | | 2,348 | | | | 2,499 | | | | 2,348 | | | | 2,499 | | | | 2,348 | |
| | | | | | | |
| Operating income | | | 8,877 | | | | 8,550 | | | $ | 8,726 | | | $ | 8,491 | | | | 8,877 | | | | 8,622 | |
| | | | | | | | | | | | | | | | | | | |
| Interest expense | | | 2,355 | | | | 1,806 | | | | | | | | | | | | 2,355 | | | | 1,894 | |
| Other (income) expense, net | | | (215 | ) | | | 1,471 | | | | | | | | | | | | (215 | ) | | | 1,466 | |
| Income tax expense | | | 2,749 | | | | 2,201 | | | | | | | | | | | | 2,749 | | | | 2,196 | |
| | | | | | | | | | | | | |
| Net income | | $ | 3,988 | | | $ | 3,072 | | | | | | | | | | | $ | 3,988 | | | $ | 3,066 | |
| | | | | | | | | | | | | |
| Earnings per share: | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.19 | | | $ | 0.15 | | | | | | | | | | | $ | 0.19 | | | $ | 0.15 | |
| | | | | | | | | | | | | |
| Diluted | | $ | 0.19 | | | $ | 0.15 | | | | | | | | | | | $ | 0.19 | | | $ | 0.15 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | As-Reported | | | Same Station | | | Pro Forma (1) | |
| Radio Segment | | Three Months Ended | | | Three Months Ended | | | Three Months Ended | |
| | | June 30, | | | June 30, | | | June 30, | |
| | | 2006 | | | 2005 | | | 2006 | | | 2005 | | | 2006 | | | 2005 | |
| | |
| Net operating revenue | | $ | 33,418 | | | $ | 33,605 | | | $ | 32,699 | | | $ | 33,337 | | | $ | 33,418 | | | $ | 34,051 | |
| Station operating expense | | | 22,960 | | | | 23,316 | | | | 22,392 | | | | 23,107 | | | | 22,960 | | | | 23,690 | |
| | | | | | | |
| Operating income | | $ | 10,458 | | | $ | 10,289 | | | $ | 10,307 | | | $ | 10,230 | | | $ | 10,458 | | | $ | 10,361 | |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | As-Reported | | | Same Station | | | Pro Forma (1) | |
| Television Segment | | Three Months Ended | | | Three Months Ended | | | Three Months Ended | |
| | | June 30, | | | June 30, | | | June 30, | |
| | | 2006 | | | 2005 | | | 2006 | | | 2005 | | | 2006 | | | 2005 | |
| | |
| Net operating revenue | | $ | 4,327 | | | $ | 3,949 | | | $ | 4,327 | | | $ | 3,949 | | | $ | 4,327 | | | $ | 3,949 | |
| Station operating expense | | | 3,409 | | | | 3,340 | | | | 3,409 | | | | 3,340 | | | | 3,409 | | | | 3,340 | |
| | | | | | | |
| Operating income | | $ | 918 | | | $ | 609 | | | $ | 918 | | | $ | 609 | | | $ | 918 | | | $ | 609 | |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | 2006 | | | 2005 | | | 2006 | | | 2005 | | | 2006 | | | 2005 | |
| | |
| Radio Segment | | $ | 1,536 | | | $ | 1,716 | | | $ | 1,426 | | | $ | 1,669 | | | $ | 1,536 | | | $ | 1,808 | |
| Television Segment | | | 414 | | | | 422 | | | | 414 | | | | 422 | | | | 414 | | | | 422 | |
| Corporate and Other | | | 48 | | | | 49 | | | | 48 | | | | 49 | | | | 48 | | | | 49 | |
| | | | | | | |
| | | $ | 1,998 | | | $ | 2,187 | | | $ | 1,888 | | | $ | 2,140 | | | $ | 1,998 | | | $ | 2,279 | |
| | | | | | | |
| | |
| (1) | | Pro Forma results assume all acquisitions and dispositions in 2005 and 2006 occurred as of January 1, 2005. |
Saga Communications, Inc.
Selected Supplemental Financial Data
For the Six Months Ended
June 30, 2006 and 2005
(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, | |
| | | 2006 | | | 2005 | | | 2006 | | | 2005 | | | 2006 | | | 2005 | |
| | |
| Net operating revenue | | $ | 68,936 | | | $ | 69,384 | | | $ | 67,604 | | | $ | 69,116 | | | $ | 68,936 | | | $ | 70,397 | |
| Station operating expense | | | 51,072 | | | | 51,354 | | | | 49,889 | | | | 51,145 | | | | 51,072 | | | | 52,311 | |
| Corporate general and administrative | | | 4,480 | | | | 4,126 | | | | 4,480 | | | | 4,126 | | | | 4,480 | | | | 4,126 | |
| | | | | | | |
| Operating income | | $ | 13,384 | | | $ | 13,904 | | | $ | 13,235 | | | $ | 13,845 | | | $ | 13,384 | | | $ | 13,960 | |
| | | | | | | | | | | | | | | | | | | |
| Interest expense | | | 4,632 | | | | 3,429 | | | | | | | | | | | | 4,632 | | | | 3,649 | |
| Other (income) expense, net | | | (570 | ) | | | 1,538 | | | | | | | | | | | | (570 | ) | | | 1,523 | |
| Income tax expense | | | 3,809 | | | | 3,700 | | | | | | | | | | | | 3,809 | | | | 3,643 | |
| | | | | | | | | | | | | |
| Net income | | $ | 5,513 | | | $ | 5,237 | | | | | | | | | | | $ | 5,513 | | | $ | 5,145 | |
| | | | | | | | | | | | | |
| Earnings per share: | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.27 | | | $ | 0.26 | | | | | | | | | | | $ | 0.27 | | | $ | 0.25 | |
| | | | | | | | | | | | | |
| Diluted | | $ | 0.27 | | | $ | 0.25 | | | | | | | | | | | $ | 0.27 | | | $ | 0.25 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | As-Reported | | | Same Station | | | Pro Forma (1) | |
| Radio Segment | | Six Months Ended | | | Six Months Ended | | | Six Months Ended | |
| | | June 30, | | | June 30, | | | June 30, | |
| | | 2006 | | | 2005 | | | 2006 | | | 2005 | | | 2006 | | | 2005 | |
| | |
| Net operating revenue | | $ | 60,698 | | | $ | 61,977 | | | $ | 59,366 | | | $ | 61,709 | | | $ | 60,698 | | | $ | 62,990 | |
| Station operating expense | | | 44,375 | | | | 44,725 | | | | 43,192 | | | | 44,516 | | | | 44,375 | | | | 45,682 | |
| | | | | | | |
| Operating income | | $ | 16,323 | | | $ | 17,252 | | | $ | 16,174 | | | $ | 17,193 | | | $ | 16,323 | | | $ | 17,308 | |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | As-Reported | | | Same Station | | | Pro Forma (1) | |
| Television Segment | | Six Months Ended | | | Six Months Ended | | | Six Months Ended | |
| | | June 30, | | | June 30, | | | June 30, | |
| | | 2006 | | | 2005 | | | 2006 | | | 2005 | | | 2006 | | | 2005 | |
| | |
| Net operating revenue | | $ | 8,238 | | | $ | 7,407 | | | $ | 8,238 | | | $ | 7,407 | | | $ | 8,238 | | | $ | 7,407 | |
| Station operating expense | | | 6,697 | | | | 6,629 | | | | 6,697 | | | | 6,629 | | | | 6,697 | | | | 6,629 | |
| | | | | | | |
| Operating income | | $ | 1,541 | | | $ | 778 | | | $ | 1,541 | | | $ | 778 | | | $ | 1,541 | | | $ | 778 | |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | 2006 | | | 2005 | | | 2006 | | | 2005 | | | 2006 | | | 2005 | |
| | |
| Radio Segment | | $ | 3,075 | | | $ | 3,369 | | | $ | 2,825 | | | $ | 3,322 | | | $ | 3,075 | | | $ | 3,599 | |
| Television Segment | | | 806 | | | | 864 | | | | 806 | | | | 864 | | | | 806 | | | | 864 | |
| Corporate and Other | | | 96 | | | | 99 | | | | 96 | | | | 99 | | | | 96 | | | | 99 | |
| | | | | | | |
| | | $ | 3,977 | | | $ | 4,332 | | | $ | 3,727 | | | $ | 4,285 | | | $ | 3,977 | | | $ | 4,562 | |
| | | | | | | |
| | |
| (1) | | Pro Forma results assume all acquisitions and dispositions in 2005 and 2006 occurred as of January 1, 2005. |
Saga Communications, Inc.
Selected Supplemental Financial Data
Quarterly Proforma Information
As of June 30, 2006
(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, | |
| | | 2006 | | | 2005 | | | 2006 | | | 2005 | | | 2005 | | | 2005 | |
| | |
| Net operating revenue | | $ | 31,191 | | | $ | 32,397 | | | $ | 37,745 | | | $ | 38,000 | | | $ | 35,961 | | | $ | 35,445 | |
| Station operating expense | | | 24,703 | | | | 25,281 | | | | 26,369 | | | | 27,030 | | | | 26,110 | | | | 26,947 | |
| Corporate general and administrative | | | 1,981 | | | | 1,778 | | | | 2,499 | | | | 2,348 | | | | 1,934 | | | | 2,114 | |
| Impairment of intangible assets | | | — | | | | — | | | | — | | | | — | | | | — | | | | 1,168 | |
| | | | | | | | | | | |
| Operating income | | | 4,507 | | | | 5,338 | | | | 8,877 | | | | 8,622 | | | | 7,917 | | | | 5,216 | |
| Interest expense | | | 2,277 | | | | 1,755 | | | | 2,355 | | | | 1,894 | | | | 2,082 | | | | 2,075 | |
| Other (income) expense, net | | | (355 | ) | | | 57 | | | | (215 | ) | | | 1,466 | | | | (35 | ) | | | 1,165 | |
| Income tax expense | | | 1,060 | | | | 1,447 | | | | 2,749 | | | | 2,196 | | | | 2,430 | | | | 87 | |
| | | | | | | | | | | |
| Net income | | $ | 1,525 | | | $ | 2,079 | | | $ | 3,988 | | | $ | 3,066 | | | $ | 3,440 | | | $ | 1,889 | |
| | | | | | | | | | | |
| Earnings per share: | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.07 | | | $ | 0.10 | | | $ | 0.19 | | | $ | 0.15 | | | $ | 0.17 | | | $ | 0.09 | |
| | | | | | | | | | | |
| Diluted | | $ | 0.07 | | | $ | 0.10 | | | $ | 0.19 | | | $ | 0.15 | | | $ | 0.17 | | | $ | 0.09 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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, | |
| | | 2006 | | | 2005 | | | 2006 | | | 2005 | | | 2005 | | | 2005 | |
| | |
| Net operating revenue | | $ | 27,280 | | | $ | 28,939 | | | $ | 33,418 | | | $ | 34,051 | | | $ | 32,263 | | | $ | 31,357 | |
| Station operating expense | | | 21,415 | | | | 21,992 | | | | 22,960 | | | | 23,690 | | | | 22,728 | | | | 23,514 | |
| Impairment of intangible assets | | | — | | | | — | | | | — | | | | | | | | — | | | | 890 | |
| | | | | | | | | | | |
| Operating income | | $ | 5,865 | | | $ | 6,947 | | | $ | 10,458 | | | $ | 10,361 | | | $ | 9,535 | | | $ | 6,953 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | 2006 | | | 2005 | | | 2006 | | | 2005 | | | 2005 | | | 2005 | |
| | |
| Net operating revenue | | $ | 3,911 | | | $ | 3,458 | | | $ | 4,327 | | | $ | 3,949 | | | $ | 3,698 | | | $ | 4,088 | |
| Station operating expense | | | 3,288 | | | | 3,289 | | | | 3,409 | | | | 3,340 | | | | 3,382 | | | | 3,433 | |
| Impairment of intangible assets | | | — | | | | — | | | | — | | | | — | | | | — | | | | 278 | |
| | | | | | | | | | | |
| Operating income | | $ | 623 | | | $ | 169 | | | $ | 918 | | | $ | 609 | | | $ | 316 | | | $ | 377 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | 2006 | | | 2005 | | | 2006 | | | 2005 | | | 2005 | | | 2005 | |
|
| | |
Radio Segment | | $ | 1,539 | | | $ | 1,791 | | | $ | 1,536 | | | $ | 1,808 | | | $ | 1,812 | | | $ | 1,894 | | | Television Segment | | | 392 | | | | 442 | | | | 414 | | | | 422 | | | | 446 | | | | 456 | |
| Corporate and Other | | | 48 | | | | 50 | | | | 48 | | | | 49 | | | | 50 | | | | 50 | |
| | | | | | | | | | | |
| | | $ | 1,979 | | | $ | 2,283 | | | $ | 1,998 | | | $ | 2,279 | | | $ | 2,308 | | | $ | 2,400 | |
| | | | | | | | | | | |
| | |
| (1) | | Pro Forma results assume all acquisitions and dispositions in 2005 and 2006 occurred as of January 1, 2005. |
Saga Communications, Inc.
Selected Financial Data Non-GAAP Disclosures
For the Three Months Ended
June 30, 2006 and 2005
(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, | |
| | | 2006 | | | Period | | | 2006 | | | 2005 | | | Period | | | 2005 | |
| | |
| Net operating revenue | | $ | 37,745 | | | | ($719 | ) | | $ | 37,026 | | | $ | 37,554 | | | | ($268 | ) | | $ | 37,286 | |
| Station operating expense | | | 26,369 | | | | (568 | ) | | | 25,801 | | | | 26,656 | | | | (209 | ) | | | 26,447 | |
| Corporate general and administrative | | | 2,499 | | | | — | | | | 2,499 | | | | 2,348 | | | | — | | | | 2,348 | |
| | | | | | | | | | | | | | | | | | | |
| Operating income | | $ | 8,877 | | | | ($151 | ) | | $ | 8,726 | | | $ | 8,550 | | | | ($59 | ) | | $ | 8,491 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | 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, | |
| | | 2006 | | | Period | | | 2006 | | | 2005 | | | Period | | | 2005 | |
| | |
| Net operating revenue | | $ | 33,418 | | | | ($719 | ) | | $ | 32,699 | | | $ | 33,605 | | | | ($268 | ) | | $ | 33,337 | |
| Station operating expense | | | 22,960 | | | | (568 | ) | | | 22,392 | | | | 23,316 | | | | (209 | ) | | | 23,107 | |
| | | | | | | | | | | | | | | | | | | |
| Operating income | | $ | 10,458 | | | | ($151 | ) | | $ | 10,307 | | | $ | 10,289 | | | | ($59 | ) | | $ | 10,230 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | 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, | |
| | | 2006 | | | Period | | | 2006 | | | 2005 | | | Period | | | 2005 | |
| | |
| Net operating revenue | | $ | 4,327 | | | | — | | | $ | 4,327 | | | $ | 3,949 | | | | — | | | $ | 3,949 | |
| Station operating expense | | $ | 3,409 | | | | — | | | $ | 3,409 | | | $ | 3,340 | | | | — | | | $ | 3,340 | |
| | | | | | | | | | | | | | | | | | | |
| Operating income | | $ | 918 | | | | — | | | $ | 918 | | | $ | 609 | | | | — | | | $ | 609 | |
| | | | | | | | | | | | | | | | | | | |
Saga Communications, Inc.
Selected Financial Data Non-GAAP Disclosures
For the Six Months Ended
June 30, 2006 and 2005
(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, | |
| | | 2006 | | | Period | | | 2006 | | | 2005 | | | Period | | | 2005 | |
| | |
| Net operating revenue | | $ | 68,936 | | | | ($1,332 | ) | | $ | 67,604 | | | $ | 69,384 | | | | ($268 | ) | | $ | 69,116 | |
| Station operating expense | | | 51,072 | | | | (1,183 | ) | | | 49,889 | | | | 51,354 | | | | (209 | ) | | | 51,145 | |
| Corporate general and administrative | | | 4,480 | | | | — | | | | 4,480 | | | | 4,126 | | | | — | | | | 4,126 | |
| | | | | | | | | | | | | | | | | | | |
| Operating income | | $ | 13,384 | | | | ($149 | ) | | $ | 13,235 | | | $ | 13,904 | | | | ($59 | ) | | $ | 13,845 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | 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, | |
| | | 2006 | | | Period | | | 2006 | | | 2005 | | | Period | | | 2005 | |
| | |
| Net operating revenue | | $ | 60,698 | | | | ($1,332 | ) | | $ | 59,366 | | | $ | 61,977 | | | | ($268 | ) | | $ | 61,709 | |
| Station operating expense | | | 44,375 | | | | (1,183 | ) | | | 43,192 | | | | 44,725 | | | | (209 | ) | | | 44,516 | |
| | | | | | | | | | | | | | | | | | | |
| Operating income | | $ | 16,323 | | | | ($149 | ) | | $ | 16,174 | | | $ | 17,252 | | | | ($59 | ) | | $ | 17,193 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | 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, | |
| | | 2006 | | | Period | | | 2006 | | | 2005 | | | Period | | | 2005 | |
| | |
| Net operating revenue | | $ | 8,238 | | | $ | 0 | | | $ | 8,238 | | | $ | 7,407 | | | $ | 0 | | | $ | 7,407 | |
| Station operating expense | | | 6,697 | | | | 0 | | | | 6,697 | | | | 6,629 | | | | 0 | | | | 6,629 | |
| | | | | | | | | | | | | | | | | | | |
| Operating income | | $ | 1,541 | | | $ | 0 | | | $ | 1,541 | | | $ | 778 | | | $ | 0 | | | $ | 778 | |
| | | | | | | | | | | | | | | | | | | |
