EXHIBIT 99.1
SAGA COMMUNICATIONS ANNOUNCES
4TH QUARTER AND YEAR END 2002 RESULTS
CONTACT:
SAMUEL D. BUSH
313/886-7070
Grosse Pointe Farms, Michigan - February 26, 2003 - Saga Communications, Inc.
(AMEX-SGA) today reported net income of $14.0 million ($.66 per fully diluted
share) for the year ended December 31, 2002 compared to $8.6 million ($.41 per
fully diluted share) for 2001. Proforma net income reflecting the adoption of
FAS 142 (the non-amortization of broadcast licenses and goodwill) for the year
ended December 31, 2001 was $10.6 million ($.51 per fully diluted share). Net
income growth was 62.9% on a historical basis and 31.9% when adjusted for the
implementation of FAS 142. Free cash flow for the same period was $16.7 million,
an increase of 33.2% over the $12.5 million reported for the same period in
2001.
The Company's reported net revenue increased 10.4% in 2002 to $114.8 million and
broadcast cash flow increased 11.0% to $41.4 million for 2002. Net revenue and
broadcast cash flow increased by 5.3% and 7.6%, respectively, on a same station
basis.
For the three-month period ended December 31, 2002, net revenue and broadcast
cash flow increased by 16.4% and 17.2% to $31.3 million and $11.3 million,
respectively, over the comparable period in 2001. Free cash flow for the quarter
was $5.5 million. On a same station basis, net revenue and broadcast cash flow
increased by 9.9% and 14.0%, respectively.
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 2001
and 2002 acquisitions occurred as of January 1, 2001 and exclude amortization of
goodwill and broadcast licenses (FAS 142) for 2001.
Additionally, the Company is releasing its financial expectations for the first
quarter and full year 2003. The guidance being provided is based on the economic
and market conditions as of February 26, 2003. The Company can give no
assurances 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.
Saga expects net revenue and broadcast cash flow for the first quarter 2003 of
approximately $26.0 - $27.0 million and $7.5 - $8.0 million, respectively. For
the year, Saga expects a 3% to 5% increase in net revenue and a 4% to 6%
increase in broadcast cash flow.
Saga Communications, Inc. is a broadcasting company whose business is devoted to
acquiring, developing and operating broadcast properties. As of December 31,
2002 the Company owned or operated broadcast properties in 23 markets, including
44 FM and 26 AM radio stations, 2 state radio networks, 1 farm radio network, 4
television stations and 3 low power television stations. As previously
announced, Saga has entered into an agreement to purchase the assets of WODB-FM,
Delaware, OH serving the Columbus, OH radio market. Additionally, Saga has
entered into an agreement to sell the assets of WLLM-AM to Cornerstone Community
Radio for $275,000.
Saga's fourth quarter and 2002 annual results conference call will be on
Thursday, February 27 at 10AM. The call will be a listen only call for the
public. The dial in number for domestic calls is 800/450-0785. For international
callers the number is 612/332-0820. The call can be replayed for 7 days by
calling domestically 800/475-6701 or internationally 320/365-3844 and referring
to access code 669463.
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. The
guidance for 2003 should be considered a forward looking statement. 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 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 AND TWELVE MONTH PERIODS
ENDED DECEMBER 31, 2002 AND 2001
(AMOUNTS IN 000'S EXCEPT PER SHARE DATA)
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
2002 2001 2002 2001
-------- -------- ------- -------
OPERATING RESULTS
Net revenue $31,308 $26,898 $114,782 $103,956
Station operating expense
(excluding depreciation, amortization,
corporate general and administrative) 19,985 17,235 73,350 66,640
-------- -------- ------- -------
Broadcast cash flow 11,323 9,663 41,432 37,316
Corporate general and administrative 1,677 1,335 6,022 5,421
Depreciation 1,536 1,508 6,034 5,763
Amortization 124 1,134 499 4,347
-------- -------- ------- -------
Operating profit 7,986 5,686 28,877 21,785
Interest expense 1,435 1,396 5,487 7,037
Other (income) expense 306 (12) 159 (17)
-------- -------- ------- -------
Income before income tax 6,245 4,302 23,231 14,765
Income tax provision:
Current 726 486 5,506 3,858
Deferred 1,415 1,350 3,770 2,342
-------- -------- ------- -------
2,141 1,836 9,276 6,200
-------- -------- ------- -------
Net income $ 4,104 $ 2,466 $ 13,955 $ 8,565
======== ======== ======= =======
Earnings per share:
Basic $.20 $.12 $.68 $.42
======== ======== ======= =======
Diluted $.19 $.12 $.66 $.41
======== ======== ======= =======
Weighted average common shares 20,753 20,488 20,631 20,473
Weighted average common shares and common
equivalents 21,270 20,941 21,209 20,888
Free cash flow * $ 5,525 $ 3,109 $16,699 $12,538
CAPITAL EXPENDITURES $ 1,654 $ 3,349 $ 7,559 $ 8,479
BALANCE SHEET DATA
Working capital $ 5,517 $ 24,083
Net property and equipment 60,161 55,169
Net intangible and other assets 134,713 112,033
Total assets 226,322 202,721
Long term debt (including current portion) 105,228 105,501
Stockholders' equity 93,059 75,062
* Defined as net income plus depreciation, amortization, and deferred taxes
less capital expenditures.
SAGA COMMUNICATIONS, INC.
SELECTED SUPPLEMENTAL FINANCIAL DATA
FOR THE TWELVE MONTHS ENDED
DECEMBER 31, 2002 AND 2001
(AMOUNTS IN 000'S EXCEPT PER SHARE DATA)
(UNAUDITED)
AS-REPORTED SAME STATION PRO FORMA (2)
CONSOLIDATED TWELVE MONTHS ENDED TWELVE MONTHS ENDED TWELVE MONTHS ENDED
(In thousands of dollars) DECEMBER 31, DECEMBER 31, DECEMBER 31,
2002(1) 2001 2002(1) 2001 2002(1) 2001(1)
-------- -------- -------- -------- -------- --------
Net operating revenue $114,782 $103,956 $105,381 $100,044 $118,697 $110,301
Station operating expense 73,350 66,640 65,303 62,803 76,236 71,307
-------- -------- -------- -------- -------- --------
Broadcast cash flow 41,432 37,316 40,078 37,241 42,461 38,994
Corporate general and administrative 6,022 5,421 6,022 5,421 6,218 5,421
Depreciation 6,034 5,763 5,181 5,329 6,229 6,171
Amortization 499 4,347 454 3,988 499 846
-------- -------- -------- -------- -------- --------
Operating profit 28,877 21,785 $28,421 $22,503 29,515 26,556
Interest expense 5,487 7,037 5,679 7,091
Other (income) expense 159 (17) 159 (17)
Income tax provision 9,276 6,200 9,466 8,204
------- ------ ------- -------
Net income $13,955 $8,565 $14,211 $11,278
======= ====== ======= =======
Earnings per share:
Basic $0.68 $0.42 $0.69 $0.55
======= ====== ======= =======
Diluted $0.66 $0.41 $0.67 $0.54
======= ====== ======= =======
AS-REPORTED SAME STATION PRO FORMA (2)
RADIO SEGMENT TWELVE MONTHS ENDED TWELVE MONTHS ENDED TWELVE MONTHS ENDED
(In thousands of dollars) DECEMBER 31, DECEMBER 31, DECEMBER 31,
2002(1) 2001 2002(1) 2001 2002(1) 2001(1)
-------- ------- ------- ------- -------- -------
Net operating revenue $102,372 $93,094 $92,971 $89,182 $106,287 $99,439
Station operating expense 64,134 58,317 56,087 54,480 67,020 62,984
-------- ------- ------- ------- -------- -------
Broadcast cash flow 38,238 34,777 36,884 34,702 39,267 36,455
Depreciation 4,401 3,961 3,548 3,527 4,596 4,369
Amortization 475 3,580 430 3,221 475 437
-------- ------- ------- ------- -------- -------
Operating profit $33,362 $27,236 $32,906 $27,954 $34,196 $31,649
AS-REPORTED SAME STATION PRO FORMA (2)
TELEVISION SEGMENT TWELVE MONTHS ENDED TWELVE MONTHS ENDED TWELVE MONTHS ENDED
(In thousands of dollars) DECEMBER 31, DECEMBER 31, DECEMBER 31,
2002(1) 2001 2002(1) 2001 2002(1) 2001(1)
------- ------- ------- ------- ------- -------
Net operating revenue $12,410 $10,862 $12,410 $10,862 $12,410 $10,862
Station operating expense 9,216 8,323 9,216 8,323 9,216 8,323
------- ------- ------- ------- ------- -------
Broadcast cash flow 3,194 2,539 3,194 2,539 3,194 2,539
Depreciation 1,432 1,630 1,432 1,630 1,432 1,630
Amortization 24 391 24 391 24 33
------- ------- ------- ------- ------- -------
Operating profit $1,738 $518 $1,738 $518 $1,738 $876
(1) Results exclude amortization of goodwill and broadcast licenses.
(2) Pro Forma results assume all acquisitions occurred as of January 1, 2001.
SAGA COMMUNICATIONS, INC.
SELECTED SUPPLEMENTAL FINANCIAL DATA
FOR THE THREE MONTHS ENDED
DECEMBER 31, 2002 AND 2001
(AMOUNTS IN 000'S EXCEPT PER SHARE DATA)
(UNAUDITED)
AS-REPORTED SAME STATION PRO FORMA (2)
CONSOLIDATED THREE MONTHS ENDED THREE MONTHS ENDED THREE MONTHS ENDED
(In thousands of dollars) DECEMBER 31, DECEMBER 31, DECEMBER 31,
2002(1) 2001 2002(1) 2001 2002(1) 2001(1)
------- ------- ------- ------- ------- -------
Net operating revenue $31,308 $26,898 $29,559 $26,898 $31,678 $28,139
Station operating expense 19,985 17,235 18,541 17,235 20,266 18,157
------- ------- ------- ------- ------- -------
Broadcast cash flow 11,323 9,663 11,018 9,663 1,412 9,982
Corporate general and administrative 1,677 1,335 1,677 1,335 1,702 1,335
Depreciation 1,536 1,508 1,469 1,508 1,517 1,588
Amortization 124 1,134 124 1,134 124 211
------- ------- ------- ------- ------- -------
Operating profit 7,986 5,686 $7,748 $5,686 8,069 6,848
Interest expense 1,435 1,396 1,459 1,396
Other (income) expense 306 (12) 306 (12)
Income tax provision 2,141 1,836 2,167 2,356
------ ------ ------ ------
Net income $4,104 $2,466 $4,137 $3,108
====== ====== ====== ======
Earnings per share:
Basic $0.20 $0.12 $0.20 $0.15
====== ====== ====== ======
Diluted $0.19 $0.12 $0.19 $0.15
====== ====== ====== ======
AS-REPORTED SAME STATION PRO FORMA (2)
RADIO SEGMENT THREE MONTHS ENDED THREE MONTHS ENDED THREE MONTHS ENDED
(In thousands of dollars) DECEMBER 31, DECEMBER 31, DECEMBER 31,
2002(1) 2001 2002(1) 2001 2002(1) 2001(1)
------- ------- ------- ------- ------- -------
Net operating revenue $27,798 $23,777 $26,049 $23,777 $28,168 $25,018
Station operating expense 17,619 15,031 16,175 15,031 17,900 15,953
------- ------- ------- ------- ------- -------
Broadcast cash flow 10,179 8,746 9,874 8,746 10,268 9,065
Depreciation 1,114 1,048 1,047 1,048 1,095 1,128
Amortization 118 903 118 903 118 69
------- ------- ------- ------- ------- -------
Operating profit $8,947 $6,795 $8,709 $6,795 $9,055 $7,868
AS-REPORTED SAME STATION PRO FORMA (2)
TELEVISION SEGMENT THREE MONTHS ENDED THREE MONTHS ENDED THREE MONTHS ENDED
(In thousands of dollars) DECEMBER 31, DECEMBER 31, DECEMBER 31,
2002(1) 2001 2002(1) 2001 2002(1) 2001(1)
------- ------- ------- ------- ------- -------
Net operating revenue $3,510 $3,121 $3,510 $3,121 $3,510 $3,121
Station operating expense 2,366 2,204 2,366 2,204 2,366 2,204
------- ------- ------- ------- ------- -------
Broadcast cash flow 1,144 917 1,144 917 1,144 917
Depreciation 370 420 370 420 370 420
Amortization 6 98 6 98 6 9
------- ------- ------- ------- ------- -------
Operating profit $768 $399 $768 $399 $768 $488
(1) Results exclude amortization of goodwill and broadcast licenses.
(2) Pro Forma results assume all acquisitions occurred as of January 1, 2001.
SAGA COMMUNICATIONS, INC.
SELECTED SUPPLEMENTAL FINANCIAL DATA
FOR THE TWELVE MONTHS ENDED
DECEMBER 31, 2002 AND 2001
(AMOUNTS IN 000'S EXCEPT PER SHARE DATA)
(UNAUDITED)
PRO FORMA (2) PRO FORMA (2) PRO FORMA (2) PRO FORMA (2)
THREE MONTHS THREE MONTHS THREE MONTHS THREE MONTHS
CONSOLIDATED ENDED ENDED ENDED ENDED
(In thousands of dollars) MARCH 31, JUNE 30, SEPTEMBER 30, DECEMBER 31,
2002(1) 2001(1) 2002(1) 2001(1) 2002(1) 2001(1) 2002(1) 2001(1)
------- ------- ------- ------- ------- ------- ------- -------
Net operating revenue $25,301 $24,708 $31,012 $29,691 $30,706 $27,763 $31,678 $28,139
Station operating expense 17,583 17,534 19,868 18,363 18,519 17,253 20,266 18,157
------- ------- ------- ------- ------- ------- ------- -------
Broadcast cash flow 7,718 7,174 11,144 11,328 12,187 10,510 11,412 9,982
Corporate general and administrative 1,317 1,356 1,615 1,539 1,584 1,191 1,702 1,335
Depreciation 1,522 1,525 1,593 1,529 1,597 1,529 1,517 1,588
Amortization 125 178 125 246 125 211 124 211
------- ------- ------- ------- ------- ------- ------- -------
Operating profit 4,754 4,115 7,811 8,014 8,881 7,579 8,069 6,848
Interest expense 1,365 1,857 1,439 1,942 1,416 1,896 1,459 1,396
Other (income) expense (7) 358 10 (48) (150) (315) 306 (12)
Income tax provision 1,427 841 2,673 2,561 3,199 2,446 2,167 2,356
------- ------- ------- ------- ------- ------- ------- -------
Net income $1,969 $1,059 $3,689 $3,559 $4,416 $3,552 $4,137 $3,108
======= ======= ======= ======= ======= ======= ======= =======
Earnings per share:
Basic $0.10 $0.05 $0.18 $0.17 $0.21 $0.17 $0.20 $0.15
======= ======= ======= ======= ======= ======= ======= =======
Diluted $0.09 $0.05 $0.17 $0.17 $0.21 $0.17 $0.19 $0.15
======= ======= ======= ======= ======= ======= ======= =======
PRO FORMA (2) PRO FORMA (2) PRO FORMA (2) PRO FORMA (2)
THREE MONTHS THREE MONTHS THREE MONTHS THREE MONTHS
RADIO SEGMENT ENDED ENDED ENDED ENDED
(In thousands of dollars) MARCH 31, JUNE 30, SEPTEMBER 30, DECEMBER 31,
2002(1) 2001(1) 2002(1) 2001(1) 2002(1) 2001(1) 2002(1) 2001(1)
------- ------- ------- ------- ------- ------- ------- -------
Net operating revenue $22,546 $22,238 $28,007 $26,993 $27,566 $25,190 $28,168 $25,018
Station operating expense 15,427 15,469 17,458 16,387 16,235 15,175 17,900 15,953
------- ------- ------- ------- ------- ------- ------- -------
Broadcast cash flow 7,119 6,769 10,549 10,606 11,331 10,015 10,268 9,065
Depreciation 1,119 1,080 1,189 1,080 1,193 1,081 1,095 1,128
Amortization 119 123 119 147 119 98 118 69
------- ------- ------- ------- ------- ------- ------- -------
Operating profit $5,881 $5,566 $9,241 $9,379 $10,019 $8,836 $9,055 $7,868
PRO FORMA (2) PRO FORMA (2) PRO FORMA (2) PRO FORMA (2)
THREE MONTHS THREE MONTHS THREE MONTHS THREE MONTHS
TELEVISION SEGMENT ENDED ENDED ENDED ENDED
(In thousands of dollars) MARCH 31, JUNE 30, SEPTEMBER 30, DECEMBER 31,
2002(1) 2001(1) 2002(1) 2001(1) 2002(1) 2001(1) 2002(1) 2001(1)
------- ------- ------- ------- ------- ------- ------- -------
Net operating revenue $2,755 $2,470 $3,005 $2,698 $3,140 $2,573 $3,510 $3,121
Station operating expense 2,156 2,065 2,410 1,976 2,284 2,078 2,366 2,204
------- ------- ------- ------- ------- ------- ------- -------
Broadcast cash flow 599 405 595 722 856 495 1,144 917
Depreciation 354 403 354 404 354 403 370 420
Amortization 6 8 6 8 6 8 6 9
------- ------- ------- ------- ------- ------- ------- -------
Operating profit $239 ($6) $235 $310 $496 $84 $768 $488
(1) Results exclude amortization of goodwill and broadcast licenses.
(2) Pro Forma results assume all acquisitions occurred as of January 1, 2001.