EXHIBIT 99.1
[SAGA COMMUNICATIONS, INC. LOGO]
73 KERCHEVAL SUITE 201
GROSSE POINTS FARMS, MI 48236
(313)886.7070
FAX (313) 886.7150
SAGA COMMUNICATIONS, INC. REPORTS
1ST QUARTER RESULTS AND CONFIRMS 2003 GUIDANCE
CONTACT:
Samuel D. Bush
313/886-7070
Grosse Pointe Farms, MI -- April 29, 2003 -- Saga Communications, Inc.
(AMEX-SGA) today announced its first quarter operating results. For the quarter
ended March 31, 2003, net revenue increased 9.3% over the comparable period in
2002 to approximately $26.1 million. Station Operating Income (station operating
income before depreciation and amortization) increased .5% to approximately $7.3
million for the quarter. Net Income decreased to $1.7 million from $1.8 million
($.08 per share on a fully diluted basis for the quarter ended March 31, 2003
compared to $.09 for the quarter ended March 31, 2002). Free cash flow (defined
as net income plus depreciation, amortization and deferred taxes less capital
expenditures) for the quarter was $1.4 million.
On a same station basis, net revenue increased $438 thousand to approximately
$24.3 million and station operating income decreased $38 thousand to $7.2
million compared to the same period last year. Operating performance for the
quarter reflects anomalies in radio and television advertising spending
patterns, primarily during the month of March.
Station operating income and free cash flow are generally recognized by the
broadcasting industry as measures of performance and are used by analysts who
report on the industry to provide meaningful comparisons between broadcasting
groups, as well as an indicator of their market value. Station operating income
and free cash flow are not a measure of liquidity or of performance in
accordance with generally accepted accounting principles (GAAP), and should be
viewed as a supplement to and not a substitute for the results of operations
presented on a GAAP basis.
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 2002
acquisitions occurred as of January 1, 2002.
Additionally, Saga is releasing its financial expectations for the year 2003.
With the adoption of Regulation FD by the Securities and Exchange Commission,
the Company is providing guidance in order to widely disseminate the Company's
outlook for the remainder of 2003. This guidance is based on the economic and
market conditions as of April 29, 2003. The Company can give no assurance as to
whether these conditions will continue, or if they change, how such changes may
affect the Company's current expectations. While Saga may from time to time
issue updated guidance, it assumes no obligation to do so.
For the quarter ending June 30, 2003, the Company expects net revenues of
approximately $31.0 - $32.0 million and station operating income of
approximately $11.0 -- $11.5 million. For the year ending 2003, the Company
expects a 3%-- 5% increase in net revenue and a 4% - 6% increase in station
operating income.
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 23 markets, including 46 FM and 26 AM radio
stations, 2 state radio networks, 1 farm radio network, 4 television stations
and 3 low power television stations. For additional information contact us at
313/886-7070 or on our website at www.sagacommunications.com.
Saga's first quarter results and 2003 guidance conference call will be on
Tuesday, April 29 at 10:00AM EDT. The call will be a listen only call for the
public. The dial in number for domestic calls is 888/273-9890. For international
callers the number is 612/332-0345. The call can be replayed for 7 days by
calling domestically 800/475-6701 or internationally 320/365-3844 and referring
to access code 681448.
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 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 herein.
SAGA COMMUNICATIONS, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
FOR THE THREE MONTH PERIODS
ENDED MARCH 31, 2003 AND 2002
(AMOUNTS IN 000'S EXCEPT PER SHARE DATA)
(Unaudited)
THREE MONTHS ENDED
MARCH 31,
----------------------------
2003 2002
----------------------------
OPERATING RESULTS
Net revenue $ 26,141 $ 23,928
Station operating expense (excluding depreciation,
amortization, corporate general and administrative) 18,813 16,633
----------------------------
Station operating income (*) 7,328 7,295
Corporate general and administrative 1,245 1,292
Depreciation 1,719 1,441
Amortization 90 125
----------------------------
Operating profit 4,274 4,437
Interest expense 1,535 1,341
Other (income) expense (8) (7)
----------------------------
Income before income tax 2,747 3,103
Income tax provision 1,098 1,303
Net income $ 1,649 $ 1,800
============================
Earnings per share - basic and diluted $ .08 $ .09
============================
Weighted average common shares 20,805 20,516
Weighted average common shares and common equivalents 21,264 21,044
FREE CASH FLOW
Net Income $ 1,649 $ 1,800
Plus: Depreciation and amortization 1,809 1,566
Deferred tax provision 439 430
Less: Capital expenditures (2,521) (2,243)
----------------------------
Free cash flow $ 1,376 $ 1,553
============================
BALANCE SHEET DATA
Working capital $ 1,290 $ 26,795
Net fixed assets 60,919 55,965
Net intangible and other assets 144,910 112,140
Total assets 238,467 206,236
Long term debt (including current portion of $17,840
and $275, respectively) 114,123 105,399
Stockholders' equity 94,930 77,955
(*) Excluding depreciation, amortization, and corporate general and
administrative
SAGA COMMUNICATIONS, INC.
SELECTED SUPPLEMENTAL FINANCIAL DATA
FOR THE THREE MONTHS ENDED
MARCH 31, 2003 AND 2002
(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
(In thousands of dollars) MARCH 31, MARCH 31, MARCH 31
2003 2002 2003 2002 2003 2002
------------------------ ------------------------- ----------------------
Net operating revenue $26,141 $23,928 $24,258 $23,820 $26,141 $25,382
Station operating expense 18,813 16,633 17,040 16,564 18,813 17,741
------------------------ ------------------------- ----------------------
Station operating income 7,328 7,295 7,218 7,256 7,328 7,641
Corporate general and administrative 1,245 1,292 1,245 1,292 1,245 1,317
Depreciation 1,719 1,441 1,599 1,441 1,719 1,524
Amortization 90 125 90 125 90 125
------------------------ ------------------------- ----------------------
Operating profit 4,274 4,437 $4,284 $4,398 4,274 4,675
Interest expense 1,535 1,341 1,535 1,365
Other (income) expense (8) (7) (8) (7)
Income tax provision 1,098 1,303 1,098 1,393
------------------------ ----------------------
Net income $1,649 $1,800 $1,649 $1,924
======================== ======================
Earnings per share:
Basic $0.08 $0.09 $0.08 $0.09
======================== ======================
Diluted $0.08 $0.09 $0.08 $0.09
======================== ======================
AS-REPORTED SAME STATION PRO FORMA (1)
RADIO SEGMENT THREE MONTHS ENDED THREE MONTHS ENDED THREE MONTHS ENDED
(In thousands of dollars) MARCH 31, MARCH 31, MARCH 31
2003 2002 2003 2002 2003 2002
------------------------ ------------------------- ----------------------
Net operating revenue $23,525 $21,173 $21,642 $21,065 $23,525 $22,627
Station operating expense 16,529 14,477 14,756 14,408 16,529 15,585
------------------------ ------------------------- ----------------------
Station operating income 6,996 6,696 6,886 6,657 6,996 7,042
Depreciation 1,281 1,038 1,161 1,038 1,281 1,121
Amortization 86 119 86 119 86 119
------------------------ ------------------------- ----------------------
Operating profit $5,629 $5,539 $5,639 $5,500 $5,629 $5,802
AS-REPORTED SAME STATION PRO FORMA (1)
TELEVISION SEGMENT THREE MONTHS ENDED THREE MONTHS ENDED THREE MONTHS ENDED
(In thousands of dollars) MARCH 31, MARCH 31, MARCH 31
2003 2002 2003 2002 2003 2002
------------------------ ------------------------- ----------------------
Net operating revenue $ 2,616 $2,755 $2,616 $2,755 $2,616 $2,755
Station operating expense 2,284 2,156 2,284 2,156 2,284 2,156
------------------------ ------------------------- ----------------------
Station operating income 332 599 332 599 332 599
Depreciation 388 354 388 354 388 354
Amortization 4 6 4 6 4 6
------------------------ ------------------------- ----------------------
Operating profit (loss) ($60) $239 ($60) $239 ($60) $239
(1) Pro Forma results assume all acquisitions occurred as of January 1, 2002.