EXHIBIT 99.1
[OBIE MEDIA LOGO]
NEWS ANNOUNCEMENT
CONTACT: GARY LIVESAY
VICE PRESIDENT AND CFO
(541) 686-8400
JULY 14, 2003
OBIE MEDIA REPORTS F2003 QUARTER TWO RESULTS
o QUARTERLY EBITDA DOUBLES TO $700,000
o PALM BEACH, FLORIDA AND LONDON, ONTARIO TRANSIT CONTRACTS
RENEWED; PITTSBURGH CONTRACT WON
EUGENE, Ore. - Obie Media Corporation (Nasdaq:OBIE), a leading provider of
out-of-home advertising products and services in North America, today reported
financial results for its second quarter ended May 31, 2003.
Net revenue for the quarter was $10.6 million down slightly from second quarter
2002's net revenue of $10.9 million. Revenue from transit advertising was $9.05
million, down $100,000 from the year before, and revenue from billboard
advertising was $1.58 million in second quarter 2003, down from $1.79 million in
the previous year's second quarter. The Company reported a loss for the 2003
second quarter of $461,396 ($0.08 per share), an improvement on the same period
in 2002 when the net loss was $521,548 ($0.09 per share).
Earnings before interest, taxes, depreciation and amortization (EBITDA), a
common measurement for out-of-home advertising companies, was $706,887 for
second quarter 2003, more than double the $342,109 for the same period last
year. Year-to-date, this puts the Company ahead of last year's EBITDA by
approximately $1 million.
"While media spending on transit and billboards remains relatively soft, Obie
Media's cost containment strategy positions the Company well for future
quarters," remarked Brian B. Obie, Chairman and CEO of the Company.
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Net revenue for the first six months ended May 31, 2003 was $19.3 million, down
from $20.5 million in the first half ended May 31, 2002. Revenue from transit
advertising was $16.07 million for the first half of 2003 versus $17.05 million
for the first six months ended May 31, 2002. Revenue from billboard advertising
was $3.26 million for the first half of 2003 versus $3.46 million for the half
ended May 31, 2002. Obie Media reported a net loss for the six months ended May
31, 2003 of ($1.5 million) or ($0.25 per share). For the same period in 2002,
the net loss was ($2.04 million) or ($0.34 per share).
Obie Media is pleased to announce that it has been awarded five-year renewals by
transit authorities in Palm Beach, Florida and London, Ontario, which combined
should bring in $2 million annually. "These renewals in Palm Beach and London
are a vote of confidence in Obie Media's transit advertising operations and
position the Company for future success," said Mr. Obie pointing out that the
Company's contract in Fort Lauderdale, Florida is the only other renewal due
this year.
In addition, Obie won an exclusive three-year contract (plus a possible
three-year extension) to provide transit advertising on the Pittsburgh, PA
transit system operated by Port Authority of Allegheny County which went into
effect on July 1, 2003. The contract in this top 25 US market permits the sale
of Obie Media's large format graphic signature products on the exterior of buses
including Full Wraps and Coach Murals in addition to traditional transit
advertising products. The Company expects to generate $7-8 million over the
three years.
Also, the Company has reached a significant milestone in the transit advertising
industry by selling 100 fully wrapped bus displays in 100 days, representing $4
million in annual billing, during a recent promotion that began with the new
fiscal year. The promotion has also brought in another 20 wraps as additional
sales were made after the 100-day mark. All these wraps were designed and
produced in-house.
Conference Call Information
- ---------------------------
A conference call to review the Company's fiscal 2003 second quarter results is
scheduled for 11:30 a.m. EDT on Monday, July 14. To listen to the call, dial
800-290-2715.
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A transcript of the conference call will be posted on the Obie Media Web site at
www.obie.com for a period of two weeks following the call. To view the
transcript, click on the Investor's Corner link at the Obie Media home page and
click on "Conference Call Transcript" in the upper-left-hand corner.
About Obie Media
- ----------------
Obie Media Corporation is a leading full-service out-of-home advertising company
based in Eugene, Oregon. The Company sells, designs, produces and installs
out-of-home advertising displays which include transit posters, billboards,
wallscapes, transit shelters and bus benches throughout the United States and
Canada. Obie Media's common stock is traded on Nasdaq Small Cap Market under the
symbol "Obie." For more information, please contact Obie Media Corporation, 4211
West 11th Avenue, Eugene, Oregon 97402-5435.
Cautionary Statement Concerning Forward-looking Statements
- ----------------------------------------------------------
This document contains both historical and forward-looking statements. All
statements other than statements of historical fact are, or may be deemed to be,
forward-looking statements within the meaning of section 27A of the Securities
Act of 1933 and section 21E of the Securities Exchange Act of 1934. These
forward-looking statements are not based on historical facts, but rather reflect
the Company's current expectations concerning future results and events.
Similarly, statements that describe our objectives, plans or goals are or may be
forward-looking statements. These forward-looking statements involve known and
unknown risks, uncertainties and other factors, which may cause the actual
results, performance or achievements of the Company to be different from any
future statements. The following important factors, among others, could affect
future results, causing these results to differ materially from those expressed
in our forward-looking statements: failure to conclude favorable negotiations on
pending transactions with existing transit agency partners or to successfully
assimilate expanded operations; potential impairments of liquidity or capital
resources; inability to generate sufficient advertising revenues to meet
contractual guarantees; inability to renew existing lending arrangements as they
expire; potential for cancellation or interruption of contracts with
governmental agencies; a further decline in the demand for advertising in the
areas where we conduct our business, or a deterioration of business conditions
generally in those areas; slower than expected acceptance of our innovative
display
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products; competitive factors, including increased competition and price
pressures; changes in the seasonality of our business; and changes in regulatory
or other external factors; as well as those factors listed from time to time in
the Company's reports. The forward-looking statements included in this document
are made only as of the date of this document and under section 27A of the
Securities Act and section 21E of the Exchange Act. We do not have any
obligation to publicly update any forward-looking statements to reflect
subsequent events or circumstances.
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OBIE MEDIA CORPORATION - CONSOLIDATED FINANCIAL INFORMATION
(Unaudited)
STATEMENT OF INCOME DATA: Three Months Ended May Six Months Ended May
- -------------------------
------------------------------- ------------------------------
2003 2002 2003 2002
---------------- -------------- --------------- --------------
REVENUES:
Transit advertising $ 9,053,680 $ 9,159,873 $ 16,076,911 $ 17,053,485
Outdoor advertising 1,581,634 1,790,263 3,255,963 3,462,941
---------------- -------------- --------------- --------------
Net revenue 10,635,314 10,950,136 19,332,874 20,516,426
OPERATING EXPENSES:
Production and installation 1,559,641 1,516,543 2,921,725 3,123,291
Transit and outdoor occupancy 4,546,695 4,533,657 8,170,787 8,435,140
Selling 2,029,521 2,305,936 3,825,040 4,760,744
General and administrative 1,686,656 1,923,253 3,519,593 3,894,973
Depreciation and amortization 449,992 547,509 918,944 1,094,886
---------------- -------------- --------------- --------------
Total operating expenses 10,272,505 10,826,898 19,356,089 21,309,034
---------------- -------------- --------------- --------------
Operating income (loss) 362,809 123,238 (23,215) (792,608)
OTHER (INCOME) EXPENSE:
Interest expense 583,760 316,148 1,127,758 632,043
---------------- -------------- --------------- --------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES (220,951) (192,910) (1,150,973) (1,424,651)
PROVISION FOR (BENEFIT) FROM INCOME TAXES 134,531 0 134,531 0
---------------- -------------- --------------- --------------
INCOME (LOSS) FROM CONTINUING
OPERATIONS (1) (355,482) (192,910) (1,285,504) (1,424,651)
DISCONTINUED OPERATIONS, NET OF INCOME TAXES (105,914) (328,638) (218,504) (617,858)
---------------- -------------- --------------- --------------
NET INCOME ($461,396) ($521,548) ($1,504,008) ($2,042,509)
================ ============== =============== ==============
Earnings (loss) per share:
Basic and diluted, from continuing operations ($0.06) ($0.03) ($0.21) ($0.24)
Basic and diluted, discontinued operations ($0.02) ($0.06) ($0.04) ($0.10)
Basic and diluted, on net income (loss) ($0.08) ($0.09) ($0.25) ($0.34)
OTHER DATA:
EBITDA (2) 706,887 342,109 677,225 (315,580)
Weighted average shares outstanding (diluted) 5,908,577 5,908,577 5,908,577 5,908,577
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(1) Obie has adopted, effective for fiscal year 2002, the provisions of SFAS
144 and 146, which address accounting for and reporting upon the results of
discontinued operations. The fiscal 2002 data has been reclassified to
conform with the fiscal 2003 presentations.
(2) The Company believes that EBITDA is widely used as one measure to evaluate
the financial performance of companies in the out-of-home advertising
industry, and therefore, is an appropriate supplemental measure regarding
the operating performance of our business. The Company believes that EBITDA
can assist in comparing out-of-home advertising company performance on a
consistent basis without regard to depreciation and amortization, which can
vary significantly depending on accounting methods used (particularly when
acquisitions are involved) or non-operating factors (such as historical
cost basis). Accordingly, this information has been disclosed to facilitate
the comparative analysis of our operating performance relative to other
companies in the out-of-home advertising industry. EBITDA (earnings before
interest, taxes, depreciation and amortization), a non-GAAP financial
measure, is defined as operating income before depreciation and
amortization expense. EBITDA should not be considered in isolation or as a
substitute for net income (loss), cash provided by operating activities or
other income or cash flow data prepared in accordance with generally
accepted accounting principles, or as a measure of profitability or
liquidity. Following is a reconciliation of EBITDA to net income (loss):
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OBIE MEDIA CORPORATION
SUPPLEMENTAL DISCLOSURE
RECONCILIATION OF GAAP TO EBITDA
(Unaudited)
Three Months Ended May Six Months Ended May
-------------------------------------- ------------------------------------
2003 2002 2003 2002
------------------- ------------------ ----------------- ------------------
Reported GAAP net income (loss) ($461,396) ($521,548) ($1,504,008) ($2,042,509)
Add interest expense 583,760 316,148 1,127,758 632,043
Add depreciation and amortization 449,992 547,509 918,944 1,094,886
Add provision for income taxes 134,531 0 134,531 0
------------------- ------------------ ----------------- ------------------
EBITDA $706,887 $342,109 $677,225 ($315,580)
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OBIE MEDIA CORPORATION
CONSOLIDATED BALANCE SHEETS
MAY 31 2003 NOV. 30 2002
(Unaudited)
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Cash 468,182 1,815,886
Accounts receivable 5,517,215 7,327,681
Prepaids and other current assets 5,958,787 4,990,859
Deferred tax asset 1,743,432 1,732,395
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Total current assets 13,687,616 15,866,821
Property and equipment, net 15,371,017 15,864,193
Goodwill, net 5,448,552 5,448,552
Other assets 874,931 947,322
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Total assets 35,382,116 38,126,888
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Current portion of long-term debt 15,509,881 2,847,311
Line of credit 3,380,483 2,980,483
Accounts payable 307,096 283,075
Accrued liabilities 1,292,143 1,840,217
Income taxes payable 146,372 0
Deferred revenue 733,549 767,637
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Total current liabilities 21,369,524 8,718,723
Deferred tax 1,588,582 1,573,729
Other liabilities 94,287 0
Long-term debt, net 3,772,223 17,707,306
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Total liabilities 26,824,616 27,999,758
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Common stock 17,272,128 17,272,128
Foreign currency translation (60,272) 5,350
Retained Earnings (deficit) (8,654,356) (7,150,348)
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Shareholders equity 8,557,500 10,127,130
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Total liabilities and equity 35,382,116 38,126,888
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