Exhibit 99.1
[REGENT COMMUNICATIONS, INC. LOGO]
REGENT REPORTS SECOND QUARTER 2003 RESULTS
- Net Broadcast Revenues Increase 24% -
COVINGTON, KY, AUGUST 8, 2003 - Regent Communications, Inc. (Nasdaq: RGCI)
announced today financial results for the quarter ended June 30, 2003.
For the second quarter of 2003, net broadcast revenues increased 24.3% to $21.5
million from $17.3 million reported for the second quarter of 2002. For the same
period, station operating expenses increased to $14.1 million from $11.5
million. The Company reported net income of $1.9 million for the quarter, or
$0.04 per share, compared with reported net income of $1.7 million, or $0.04 per
share, in the same period last year.
For the first six months of 2003, net broadcast revenues increased 26.2% to
$38.2 million from $30.2 million reported for the same period of 2002. For the
same period, station operating expenses increased to $27.4 million from $21.4
million. Below is the Company's statement of operations prepared in accordance
with generally accepted accounting principles ("GAAP") (in thousands, except per
share amounts):
Three Months Ended Six Months Ended
June 30, June 30,
2003 2002 2003 2002
---- ---- ---- ----
Broadcast revenues, net of agency commissions $21,453 $17,262 $38,186 $30,248
Station operating expenses 14,135 11,470 27,442 21,416
Corporate general and administrative expenses 1,589 1,545 3,314 3,085
Depreciation and amortization 1,095 847 2,042 1,678
Gain (loss) on sale of long-lived assets 1 - (5) 442
------------------------------ -------------------------
Operating income 4,635 3,400 5,383 4,511
Interest expense (1,537) (597) (1,984) (1,482)
Other income (expense), net 5 (102) (118) (219)
------------------------------ -------------------------
Income before income taxes and cumulative effect of
accounting change 3,103 2,701 3,281 2,810
Income tax expense (1,179) (1,027) (1,247) (1,068)
------------------------------ -------------------------
Income before cumulative effect of accounting change 1,924 1,674 2,034 1,742
Cumulative effect of accounting change, net of
applicable income taxes of $3,762 - - - (6,138)
------------------------------ -------------------------
Net income (loss) $1,924 $1,674 $2,034 $(4,396)
============================== =========================
BASIC AND DILUTED NET INCOME (LOSS) PER COMMON SHARE:
Before cumulative effect of accounting change $0.04 $0.04 $0.04 $ 0.04
============================== =========================
Net income (loss) $0.04 $0.04 $0.04 $(0.11)
============================== =========================
Weighted average number of common shares:
Basic 46,484 43,361 46,509 39,639
Diluted 46,776 44,258 46,736 40,384
Regent Communications - Page 2
Terry S. Jacobs, Chairman and CEO of Regent Communications, commented, "Our
bottom line results exceeded expectations despite the challenging economic and
advertising environment. Given current market conditions, we are operating our
stations as efficiently as possible, while prudently investing in our
programming, sales and marketing resources. While we are disappointed with the
pace of the advertising recovery thus far, we believe we are taking the right
steps to maximize our results today, while positioning our stations to fully
benefit as the advertising market rebounds. We have continued to convert our
strong ratings into market leading revenue shares at the majority of our
clusters. We have also continued to grow our ratings, as evidenced by the strong
early results in the Spring Arbitron book. In addition, our start-up and
developing stations, which represent 60% of our portfolio, are progressing
according to plan. All of these trends highlight our commitment to developing
and operating leading middle and small market radio stations and delivering
growth in shareholder value over the long term."
NON-GAAP FINANCIAL MEASURES
Regent utilizes certain financial measures that are not calculated in accordance
with GAAP to assess its financial performance. The non-GAAP performance and
liquidity measures presented in this release are station operating income
(formerly broadcast cash flow), same station operating income, proforma net
broadcast revenues and proforma station operating income, and free cash flow.
Regent's management believes these non-GAAP measures provide useful information
to investors, as discussed in more detail below, regarding Regent's financial
condition and results of operations and liquidity; however, these measures
should not be considered as an alternative to net broadcast revenue, operating
income, net income (loss), or cash provided by operating activities as an
indicator of Regent's performance or liquidity.
STATION OPERATING INCOME
Second quarter 2003 station operating income increased 26.3% to $7.3 million
from $5.8 million reported in the second quarter of 2002. For the first six
months of 2003, station operating income increased 21.6% to $10.7 million from
$8.8 million reported for the same period in 2002.
The Company believes that station operating income is a performance measure that
helps investors better understand radio station operations. Additionally, the
Company and other media companies have customarily been measured by analysts and
other investors on their ability to generate station operating income. The
following table reconciles operating income, which the Company believes is the
most directly comparable GAAP financial measure, to station operating income (in
thousands):
Three Months Ended Six Months Ended
STATION OPERATING INCOME June 30, June 30,
2003 2002 2003 2002
- --------------------------------------------------------------------------------- -------------------------
Operating income $4,635 $3,400 $5,383 $4,511
PLUS:
Depreciation and amortization 1,095 847 2,042 1,678
Corporate general and administrative expenses 1,589 1,545 3,314 3,085
Loss on sale of long-lived assets - - 5 -
LESS:
Gain on sale of long-lived assets 1 - - 442
------------------------------- -------------------------
Station operating income $7,318 $5,792 $10,744 $8,832
=============================== =========================
Regent Communications - Page 3
SAME STATION RESULTS
On a same station basis, which includes results from stations owned and operated
during the entire second quarter for both the 2003 and 2002 periods and excludes
barter, net broadcast revenue for the second quarter of 2003 decreased 0.9% to
$16.0 million compared to the second quarter of 2002. Station operating income
of $5.8 million increased by 1.5% in the second quarter of 2003 compared to the
second quarter of 2002. The Company believes that a same station presentation is
important to investors as it provides a measure of performance of radio stations
that were owned and operated by Regent in the second quarter of 2002 as well as
the current year and eliminates the effect of acquisitions and dispositions on
comparability. Additionally, the Company has excluded barter in this comparison
as barter customarily results in volatility between quarters, although
differences over the full year are not material. The following tables reconcile
net broadcast revenue and operating income to same station net broadcast revenue
and same station operating income (in thousands):
Three Months Ended
SAME STATION NET BROADCAST REVENUE June 30,
2003 2002
- ----------------------------------------------------------------------------
Net broadcast revenue $21,453 $17,262
LESS:
Net results of stations not included in same
station category and barter transactions 5,407 1,072
----------------------------
Same station net broadcast revenue $16,046 $16,190
============================
Three Months Ended
SAME STATION OPERATING INCOME June 30,
2003 2002
- ------------------------------------------------------------------------------
Operating income $4,635 $3,400
PLUS:
Depreciation and amortization 1,095 847
Corporate general and administrative expenses 1,589 1,545
LESS:
Gain on sale of long-lived assets 1 -
-----------------------------
Station operating income 7,318 5,792
LESS:
Net results of stations not included in same
station category and barter transactions 1,524 85
-----------------------------
Same station operating income $5,794 $5,707
=============================
Regent Communications - Page 4
PROFORMA RESULTS
On a proforma basis, which includes results of stations acquired by Regent
subsequent to January 1, 2002 as well as stations operating under a local
marketing agreement ("LMA"), net broadcast revenue of $21.5 million for the
second quarter of 2003 was down 2.2% compared to the second quarter of 2002 and
station operating income of $7.2 million decreased 1.3% compared to the second
quarter of 2002. The Company believes that proforma presentation is useful to
investors as it provides for a comparison of results as if the Company had made
acquisitions at the beginning of 2002. The following tables reconcile net
broadcast revenue and operating income to proforma net broadcast revenue and
proforma station operating income (in thousands):
Three Months Ended
PROFORMA NET BROADCAST REVENUE June 30,
2003 2002
- --------------------------------------------------------------------------------------------
Net broadcast revenue $21,453 $17,262
PLUS:
Results of stations acquired or operated under an LMA - 4,669
LESS:
Results of stations disposed of or pending disposition - -
--------------------------------
Proforma net broadcast revenue $21,453 $21,931
================================
Three Months Ended
PROFORMA STATION OPERATING INCOME June 30,
2003 2002
- -----------------------------------------------------------------------------------------
Operating income $4,635 $3,400
PLUS:
Depreciation and amortization 1,095 847
Corporate general and administrative expenses 1,589 1,545
LESS:
Gain on sale of long-lived assets 1 -
------------------------------
Station operating income 7,318 5,792
PLUS:
Results of stations acquired or operated under an LMA - 1,501
LESS:
Results of stations disposed of or pending disposition 120 -
------------------------------
Proforma station operating income $7,198 $7,293
==============================
Regent Communications - Page 5
FREE CASH FLOW
Regent also reported free cash flow (defined as net income plus depreciation,
amortization and other non-cash expenses, less maintenance capital expenditures
and other non-cash income) for the second quarter of 2003 of $4.4 million
compared to free cash flow of $3.2 million for the second quarter of 2002. The
Company believes that free cash flow is a liquidity measure that helps investors
evaluate the ability of the Company to generate excess cash flow for investing
and financing uses. The following table displays how the Company calculates free
cash flow (in thousands):
Three Months Ended
June 30,
2003 2002
- ---------------------------------------------------------------------------
Net Income $1,924 $1,674
ADD:
Depreciation and amortization 1,095 847
Non-cash interest expense 1,079 70
Non-cash taxes 1,120 920
Other non-cash items (compensation, barter) (161) 49
LESS: Maintenance capital expenditures 671 392
------------------------------
Free cash flow $4,386 $3,168
==============================
The most directly comparable GAAP measure to free cash flow is net cash provided
by operating activities. The following table reconciles net cash provided by
operating activities to free cash flow (in thousands):
Three Months Ended
June 30,
2003 2002
- -------------------------------------------------------------------------------
Net cash provided by operating activities $704 $246
Changes in operating assets and liabilities 4,892 3,630
Other non-cash expense, net (539) (316)
LESS: Maintenance capital expenditures 671 392
-------------------------------
Free cash flow $4,386 $3,168
===============================
OUTLOOK
Regent has adopted a policy to provide guidance to investors regarding our
financial prospects. The following statements are based on current expectations.
These statements are forward-looking, and actual results may differ materially.
Regent undertakes no obligation to update these statements.
Regent Communications - Page 6
Regent expects third quarter 2003 reported consolidated net broadcast revenues
and station operating income of approximately $21.6 to $22.1 million and $6.4 to
$6.8 million, respectively. Regent expects earnings per share to be $0.04 for
the third quarter of 2003. The following table reconciles projected operating
income, which the Company believes is the most directly comparable GAAP measure
to station operating income (in millions):
Three Months Ending
STATION OPERATING INCOME September 30,
Guidance Range
Lower Upper
- -------------------------------------------------------------------------------
Operating income $3.5 $3.9
PLUS:
Depreciation and amortization 1.3 1.3
Corporate general and administrative expenses 1.6 1.6
------------------------------
Station operating income $6.4 $6.8
==============================
The Company expects same station net broadcast revenues to be flat to down low
single digits in the third quarter of 2003 compared to the third quarter of
2002. The Company believes that same station percent disclosures are important
to investors, analysts and other users of media financial information because it
enables the users of such information to compare the performance of various size
companies against industry standards.
Commenting on the Company's outlook, Terry Jacobs said, "As we have shown in the
first half of the year, we will continue to balance necessary investment
spending against prudent cost control in order to insure that we are ready to
capitalize on an improving advertising environment. Also, we have increased our
financial flexibility, closing a new credit facility on June 30th, which
provided us with access to up to $250 million in capital. With a strong balance
sheet, we are in an excellent position to grow through acquisition. We will
continue to look at smart acquisitions which enhance our growth, taking
advantage of our operational experience to create value for shareholders."
Regent Communications is a radio broadcasting company focused on acquiring,
developing and operating radio stations in middle and small-sized markets. Upon
the close of all announced transactions, Regent will own and operate 76 stations
located in 16 markets. Regent Communications, Inc. shares are traded on the
Nasdaq under the symbol "RGCI."
Regent Communications will host a teleconference to discuss its results on
August 8th at 9:30 a.m. Eastern Time. To access the teleconference, please dial
973-582-2710 ten minutes prior to the start time. The teleconference will also
be available via live webcast on the investor relations portion of Regent's
website, located at www.regentcomm.com. If you cannot listen to the
teleconference at its scheduled time, there will be a replay available through
August 15, 2003, which can be accessed by dialing 877-519-4471 (U.S) or
973-341-3080 (Int'l), passcode 4058879. The webcast will also be archived on
Regent's website for one month. In addition, this press release and other
material financial
Regent Communications - Page 7
information, if any, discussed during the teleconference will be posted on our
website at www.regentcomm.com.
This press release includes certain forward-looking statements with respect to
Regent Communications, Inc. for which we claim the protections of the safe
harbor for forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995. These forward-looking statements involve certain
risks and uncertainties and include statements preceded by, followed by or that
include words such as "anticipate," "believe," "plan," "estimate," "expect,"
"intend," "project" and other similar expressions. Although we believe our
expectations reflected in these forward-looking statements are based on
reasonable assumptions, such statements are influenced by our financial
position, business strategy, budgets, projected costs, and plans and objectives
of management for future operations. Actual results and developments may differ
materially from those conveyed in the forward-looking statements based on
various factors including, but not limited to: changes in economic, business and
market conditions affecting the radio broadcast industry, the markets in which
we operate, and nationally; increased competition for attractive radio
properties and advertising dollars; fluctuations in the cost of operating radio
properties; our ability to manage our growth; our ability to integrate these and
other acquisitions; and changes in the regulatory climate affecting radio
broadcast companies, including uncertainties surrounding recent Federal
Communication Commission rules regarding broadcast ownership limits. Further
information on other factors that could affect the financial results of Regent
Communications, Inc. is included in Regent's filings with the Securities and
Exchange Commission. These documents are available free of charge at the
Commission's website at http://www.sec.gov and/or from Regent Communications,
Inc.
CONTACT:
Terry Jacobs John Buckley
Chairman and CEO Brainerd Communicators, Inc.
Regent Communications, Inc. 212-986-6667
859-292-0030 buckley@braincomm.com
Tony Vasconcellos
Senior Vice President and Chief Financial Officer
Regent Communications, Inc.
859-292-0030