EXHIBIT 99.1
Saga Communications, Inc. Reports 2nd Quarter
Net Revenue increase of 6.8% and Net Income increase of 15.4%
CONTACT:
Samuel D. Bush
313/886-7070
Grosse Pointe Farms, MI -- August 6, 2003 -- Saga Communications, Inc.
(AMEX-SGA) today announced its second quarter operating results. For the quarter
ended June 30, 2003, net revenue increased 6.8% over the comparable period in
2002 to approximately $31.8 million. Net income for the quarter increased 15.4%
to approximately $4.2 million ($.20 per share on a fully diluted basis). Net
income for the quarter includes a gain of $357 thousand primarily due to the
sale of WVKO-AM in conjunction with the acquisition of WODB-FM in Columbus, OH.
Without this gain net income for the quarter increased 5.7%. Station operating
income (net operating revenue less station operating expense) increased 3.6% to
approximately $11.3 million for the quarter. Free cash flow (defined as net
income plus depreciation, amortization and deferred taxes less capital
expenditures) for the quarter increased 4.1% to approximately $5.2 million.
On a same station basis for the quarter, net revenue increased .3% to
approximately $29.3 million and station operating income (net operating revenue
less station operating expense) increased 2.1% to approximately $11.0 million
for the quarter.
For the six months ended June 30, 2003, net revenue increased 7.9% (1.0% on a
same station basis) over the comparable period in 2002 to approximately $57.9
million. Net income for the six-month period increased 7.6% to approximately
$5.9 million ($.28 per share on a fully diluted basis). Station operating income
increased 2.4% (1.2% on a same station basis) to approximately $18.6 million.
Free cash flow (defined as net income plus depreciation, amortization and
deferred taxes less capital expenditures) for the six month period increased .5%
to approximately $6.6 million.
Capital expenditures were approximately $1.7 million in the second quarter with
approximately $815 thousand being spent as a result of acquisitions. For the
first quarter total capital expenditures were approximately $2.5 million with
approximately $1 million being acquisition oriented.
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 measures of liquidity or of performance in accordance
with generally accepted accounting principles (GAAP), and should be viewed as a
supplement to and not as 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 2003
and 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 August 6, 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 September 30, 2003, the Company expects net revenues of
approximately $31.0 - $32.0 million and station operating income of
approximately $11.5 - $12.5 million. For the year ending 2003, the Company
expects both net revenue and station operating income on a pro forma basis to be
flat to up 2%.
On July 29, 2003 the Company completed a new senior secured credit facility with
The Bank of New York, as Administrative Agent, Union Bank of California, N.A.,
as Syndication Agent, and Fleet National Bank, as Documentation Agent. The new
facility is structured as a $200 million reducing revolver with an initial
borrowing of $109,100,000 used to pay indebtedness under the previous credit
facility. The maturity date of the Agreement is July 29, 2010 with the initial
interest rate of 1.50% over 6 month LIBOR. The Company expects to incur a
write-off of unamortized debt issuance costs of approximately $1.3 million due
to this refinancing during the third quarter of 2003.
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 25 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 second quarter results conference call will be on Thursday, August 7 at
9AM. The dial in number for domestic calls is 888/273-9887. For international
callers the number is 612/332-0632. The call can be replayed for 7 days by
calling domestically 800/475-6701 or internationally 320/365-3844 and referring
to access code 690722.
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 here.
SAGA COMMUNICATIONS, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
FOR THE THREE AND SIX MONTH PERIODS
ENDED JUNE 30, 2003 AND 2002
(AMOUNTS IN 000'S EXCEPT PER SHARE DATA)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
2003 2002 2003 2002
-----------------------------------------------------------------
OPERATING RESULTS
Net revenue $ 31,790 $ 29,763 $ 57,931 $ 53,691
Station operating expense
(excluding depreciation, amortization,
corporate general and administrative) 20,497 18,864 39,310 35,497
-----------------------------------------------------------------
Station operating income (*) 11,293 10,899 18,621 18,194
Corporate general and administrative 1,896 1,542 3,141 2,834
Depreciation 1,671 1,534 3,390 2,975
Amortization 120 125 210 250
-----------------------------------------------------------------
Operating profit 7,606 7,698 11,880 12,135
Interest expense 1,157 1,367 2,692 2,708
Other (income) expense (357) 10 (365) 3
-----------------------------------------------------------------
Income before income tax 6,806 6,321 9,553 9,424
Income tax provision 2,577 2,656 3,675 3,959
-----------------------------------------------------------------
Net income $ 4,229 $ 3,665 $ 5,878 $ 5,465
=================================================================
Earnings per share:
Basic $ .20 $ .18 $ .28 $ .27
=================================================================
Diluted $ .20 $ .17 $ .28 $ .26
=================================================================
Weighted average common shares 20,815 20,585 20,810 20,550
Weighted average common shares and common
equivalents 21,354 21,250 21,309 21,152
FREE CASH FLOW
Net Income $ 4,229 $ 3,665 $ 5,878 $ 5,465
Plus: Depreciation and amortization 1,791 1,659 3,600 3,225
Deferred tax provision 896 876 1,335 1,306
Less: Capital expenditures (1,682) (1,174) (4,203) (3,417)
-----------------------------------------------------------------
Free cash flow $ 5,234 $ 5,026 $ 6,610 $ 6,579
=================================================================
BALANCE SHEET DATA
Working capital $ 19,455 $ 18,089
Net fixed assets 60,709 57,263
Net intangible and other assets 145,896 119,788
Total assets 237,814 211,033
Long term debt (including current portion of $98
and $4,552, respectively) 109,489 105,276
Stockholders' equity 99,482 81,948
(*) Excluding depreciation, amortization, and corporate general and
administrative
SAGA COMMUNICATIONS, INC.
SELECTED SUPPLEMENTAL FINANCIAL DATA
FOR THE SIX MONTHS ENDED
JUNE 30, 2003 AND 2002
(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
(In thousands of dollars) JUNE 30, JUNE 30, JUNE 30,
2003 2002 2003 2002 2003 2002
------------------------ -------------------------- -----------------------
Net operating revenue $57,931 $53,691 $53,528 $53,016 $57,931 $56,478
Station operating expense 39,310 35,497 35,338 35,040 39,310 37,712
------------------------ -------------------------- -----------------------
Station operating income 18,621 18,194 18,190 17,976 18,621 18,766
Corporate general and administrative 3,141 2,834 3,141 2,834 3,141 2,932
Depreciation 3,390 2,975 3,196 2,963 3,390 3,118
Amortization 210 250 180 250 210 250
------------------------ -------------------------- -----------------------
Operating profit 11,880 12,135 $11,673 $11,929 11,880 12,466
Interest expense 2,692 2,708 2,692 2,804
Other (income) expense (365) 3 (365) 3
Income tax provision 3,675 3,959 3,675 4,058
------------------------ -----------------------
Net income $ 5,878 $ 5,465 $ 5,878 $ 5,601
======================== =======================
Earnings per share:
Basic $ 0.28 $ 0.27 $ 0.28 $ 0.27
======================== =======================
Diluted $ 0.28 $ 0.26 $ 0.28 $ 0.26
======================== =======================
AS-REPORTED SAME STATION PRO FORMA(1)
RADIO SEGMENT SIX MONTHS ENDED SIX MONTHS ENDED SIX MONTHS ENDED
(In thousands of dollars) JUNE 30, JUNE 30, JUNE 30,
2003 2002 2003 2002 2003 2002
------------------------ -------------------------- -----------------------
Net operating revenue $52,200 $47,931 $47,797 $47,256 $52,200 $50,718
Station operating expense 34,606 30,931 30,634 30,474 34,606 33,146
------------------------ -------------------------- -----------------------
Station operating income 17,594 17,000 17,163 16,782 17,594 17,572
Depreciation 2,515 2,168 2,321 2,156 2,515 2,311
Amortization 203 238 173 238 203 238
------------------------ -------------------------- -----------------------
Operating profit $14,876 $14,594 $14,669 $14,388 $14,876 $15,023
AS-REPORTED SAME STATION PRO FORMA(1)
TELEVISION SEGMENT SIX MONTHS ENDED SIX MONTHS ENDED SIX MONTHS ENDED
(In thousands of dollars) JUNE 30, JUNE 30, JUNE 30,
2003 2002 2003 2002 2003 2002
------------------------ -------------------------- ---------------------
Net operating revenue $ 5,731 $ 5,760 $ 5,731 $ 5,760 $ 5,731 $ 5,760
Station operating expense 4,704 4,566 4,704 4,566 4,704 4,566
------------------------ -------------------------- ---------------------
Station operating income 1,027 1,194 1,027 1,194 1,027 1,194
Depreciation 776 708 776 708 776 708
Amortization 7 12 7 12 7 12
------------------------ -------------------------- ---------------------
Operating profit (loss) $ 244 $ 474 $ 244 $ 474 $ 244 $ 474
(1) Pro Forma results assume all acquisitions occurred as of January 1, 2002.
SAGA COMMUNICATIONS, INC.
SELECTED SUPPLEMENTAL FINANCIAL DATA
FOR THE THREE MONTHS ENDED
JUNE 30, 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) JUNE 30, JUNE 30, JUNE 30,
2003 2002 2003 2002 2003 2002
-------------------------- -------------------------- --------------------------
Net operating revenue $31,790 $29,763 $29,280 $29,204 $31,790 $31,096
Station operating expense 20,497 18,864 18,328 18,480 20,497 19,971
-------------------------- -------------------------- --------------------------
Station operating income 11,293 10,899 10,952 10,724 11,293 11,125
Corporate general and administrative 1,896 1,542 1,896 1,542 1,896 1,615
Depreciation 1,671 1,534 1,577 1,522 1,671 1,594
Amortization 120 125 90 125 120 125
-------------------------- -------------------------- --------------------------
Operating profit 7,606 7,698 $7,389 $7,535 7,606 7,791
Interest expense 1,157 1,367 1,157 1,439
Other (income) expense (357) 10 (357) 10
Income tax provision 2,577 2,656 2,577 2,665
-------------------------- --------------------------
Net income $4,229 $3,665 $4,229 $3,677
========================== ==========================
Earnings per share:
Basic $0.20 $0.18 $0.20 $0.18
========================== ==========================
Diluted $0.20 $0.17 $0.20 $0.17
========================== ==========================
AS-REPORTED SAME STATION PRO FORMA (1)
RADIO SEGMENT THREE MONTHS ENDED THREE MONTHS ENDED THREE MONTHS ENDED
(In thousands of dollars) JUNE 30, JUNE 30, JUNE 30,
2003 2002 2003 2002 2003 2002
-------------------------- -------------------------- --------------------------
Net operating revenue $28,675 $26,758 $26,165 $26,199 $28,675 $28,091
Station operating expense 18,077 16,454 15,908 16,070 18,077 17,561
-------------------------- -------------------------- --------------------------
Station operating income 10,598 10,304 10,257 10,129 10,598 10,530
Depreciation 1,234 1,130 1,140 1,118 1,234 1,190
Amortization 117 119 87 119 117 119
-------------------------- -------------------------- --------------------------
Operating profit $9,247 $9,055 $9,030 $8,892 $9,247 $9,221
AS-REPORTED SAME STATION PRO FORMA (1)
THREE MONTHS ENDED THREE MONTHS ENDED THREE MONTHS ENDED
TELEVISION SEGMENT JUNE 30, JUNE 30, JUNE 30,
(In thousands of dollars) 2003 2002 2003 2002 2003 2002
-------------------------- -------------------------- --------------------------
Net operating revenue $3,115 $3,005 $3,115 $3,005 $3,115 $3,005
Station operating expense 2,420 2,410 2,420 2,410 2,420 2,410
-------------------------- -------------------------- --------------------------
Station operating income 695 595 695 595 695 595
Depreciation 388 354 388 354 388 354
Amortization 3 6 3 6 3 6
-------------------------- -------------------------- --------------------------
Operating profit (loss) $304 $235 $304 $235 $304 $235
(1) Pro Forma results assume all acquisitions occurred as of January 1, 2002.
SAGA COMMUNICATIONS, INC.
SELECTED SUPPLEMENTAL FINANCIAL DATA
FOR THE SIX MONTHS ENDED
JUNE 30, 2003 AND 2002
(AMOUNTS IN 000'S EXCEPT PER SHARE DATA)
(UNAUDITED)
PRO FORMA (1) PRO FORMA (1)
PRO FORMA (1) PRO FORMA (1) THREE MONTHS THREE MONTHS
CONSOLIDATED THREE MONTHS ENDED THREE MONTHS ENDED ENDED ENDED
(In thousands of dollars) MARCH 31, JUNE 30, SEPTEMBER 30, DECEMBER 31,
2003 2002 2003 2002 2002 2002
-------------------------- -------------------------- ----------------- ---------------
Net operating revenue $26,141 $25,382 $31,790 $31,096 $30,790 $31,756
Station operating expense 18,813 17,741 20,497 19,971 18,644 20,389
-------------------------- -------------------------- ----------------- ---------------
Broadcast cash flow 7,328 7,641 11,293 11,125 12,146 11,367
Corporate general and administrative 1,245 1,317 1,896 1,615 1,584 1,702
Depreciation 1,719 1,524 1,671 1,594 1,598 1,518
Amortization 90 125 120 125 125 124
-------------------------- -------------------------- ----------------- ---------------
Operating profit 4,274 4,675 7,606 7,791 8,839 8,023
Interest expense 1,535 1,365 1,157 1,439 1,416 1,459
Other (income) expense (8) (7) (357) 10 (150) 306
Income tax provision 1,098 1,393 2,577 2,665 3,181 2,147
-------------------------- -------------------------- ----------------- ---------------
Net income $1,649 $1,924 $4,229 $3,677 $4,392 $4,111
========================== ========================== ================= ===============
Earnings per share:
Basic $0.08 $0.09 $0.20 $0.18 $0.21 $0.20
========================== ========================== ================= ===============
Diluted $0.08 $0.09 $0.20 $0.17 $0.21 $0.19
========================== ========================== ================= ===============
PRO FORMA (1) PRO FORMA (1)
PRO FORMA (1) PRO FORMA (1) THREE MONTHS THREE MONTHS
RADIO SEGMENT THREE MONTHS ENDED THREE MONTHS ENDED ENDED ENDED
(In thousands of dollars) MARCH 31, JUNE 30, SEPTEMBER 30, DECEMBER 31,
2003 2002 2003 2002 2002 2002
-------------------------- -------------------------- ----------------- ---------------
Net operating revenue $23,525 $22,627 $28,675 $28,091 $27,650 $28,246
Station operating expense 16,529 15,585 18,077 17,561 16,360 18,023
-------------------------- -------------------------- ----------------- ---------------
Broadcast cash flow 6,996 7,042 10,598 10,530 11,290 10,223
Depreciation 1,281 1,121 1,234 1,190 1,195 1,099
Amortization 86 119 117 119 119 118
-------------------------- -------------------------- ----------------- ---------------
Operating profit $5,629 $5,802 $9,247 $9,221 $9,976 $9,006
PRO FORMA (1) PRO FORMA (1)
PRO FORMA (1) PRO FORMA (1) THREE MONTHS THREE MONTHS
TELEVISION SEGMENT THREE MONTHS ENDED THREE MONTHS ENDED ENDED ENDED
(In thousands of dollars) MARCH 31, JUNE 30, SEPTEMBER 30, DECEMBER 31,
2003 2002 2003 2002 2002 2002
-------------------------- -------------------------- ----------------- ---------------
Net operating revenue $2,616 $2,755 $3,115 $3,005 $3,140 $3,510
Station operating expense 2,284 2,156 2,420 2,410 2,284 2,366
-------------------------- -------------------------- ----------------- ---------------
Broadcast cash flow 332 599 695 595 856 1,144
Depreciation 388 354 388 354 354 370
Amortization 4 6 3 6 6 6
-------------------------- -------------------------- ----------------- ---------------
Operating profit ($60) $239 $304 $235 $496 $768
(1) Pro Forma results assume all acquisitions occurred as of January 1, 2002.