OBIE MEDIA REPORTS FISCAL FIRST QUARTER 2004 RESULTS
o NET REVENUE INCREASES 15.3% TO $10 MILLION
o EBITDA INCREASES TO $335,167
o 2004 SALES CONTINUE TO PACE WELL AHEAD OF 2003 LEVELS
EUGENE, Ore. - April 15, 2004 - Obie Media Corporation (Nasdaq:OBIE), a leading
provider of out-of-home advertising products and services in North America,
today reported financial results for the first quarter ended February 29, 2004.
For the first quarter, net revenue was $9,978,523 compared with $8,654,791 in
the prior year first quarter. Transit advertising revenue (buses, trains,
benches, platform posters, and shelters) was $8,018,497 compared with $6,980,462
in the 2003 first quarter, an increase of 14.9%. Outdoor advertising revenue
(billboards and wallscapes) was $1,960,026 compared with $1,674,329 in the same
quarter last year, an increase of 17.1%.
The company's operating loss (from continuing operations) for the 2004 first
quarter decreased to $134,451 from $397,783 in the same quarter last year. The
first quarter net loss was $1,658,181 or $0.28 per basic and diluted share, as
compared to a net loss of $1,042,612 or $0.18 per basic and diluted share in the
same prior-year quarter.
Obie Media has previously announced a new $26 million financing with
CapitalSource Finance, LLC. This credit facility necessitated a non-recurring,
one time loss on debt extinguishment of $961,411 relating to arrangements with
prior lenders. Had this loss not occurred, the adjusted net loss for the quarter
would have been $696,770 or $0.12 per basic and diluted share.
EBITDA (earnings before interest, taxes, depreciation, and amortization) was
$335,167 for the three months ended February 29, 2004 compared with a negative
$29,662 in the 2003 first quarter.
"The first quarter of fiscal 2004 showed significant sales growth by both our
transit and billboard operations driven largely in each case by our focus on
annual local, direct advertising contract business," said Brian B. Obie,
Chairman and Chief Executive Officer of Obie Media Corporation.
Obie also said, "I want to highlight the following sales milestones: o
Company-wide sales are pacing 24% ahead of last year's levels o 82% of overall
budgeted sales are already committed for fiscal 2004 o Transit business on
annual contracts is pacing 61% ahead of last year o 94% of budgeted billboard
sales are committed for the fiscal year."
Obie concluded, "This top-line sales growth clearly reflects my belief that Obie
Media is well positioned for a strong 2004."
NOTICE OF CONFERENCE CALL
A conference call to review the Company's fiscal 2004 first quarter results is
scheduled for 11:30 a.m. EDT on Thursday, April 15. To listen to the call, dial
800-416-4612. 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 from the Obie Media home
page and click on "Conference Call Transcript" in the upper-left-hand corner.
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.
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 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.
- TABLES TO FOLLOW -
OBIE MEDIA CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended February
-----------------------------
2004 2003
------------- -------------
REVENUES:
Transit advertising $ 8,018,497 $ 6,980,462
Outdoor advertising 1,960,026 1,674,329
------------- -------------
Net revenue 9,978,523 8,654,791
------------- -------------
OPERATING EXPENSES:
Production and installation 1,517,761 1,355,132
Transit and outdoor occupancy 3,784,741 3,601,759
Selling 2,216,171 1,794,589
General and administrative 2,110,938 1,832,142
Depreciation and amortization 483,363 468,952
------------- -------------
Total operating expenses 10,112,974 9,052,574
------------- -------------
Operating loss (134,451) (397,783)
OTHER EXPENSES:
Interest expense 548,574 543,998
Loss on extinguishment of debt 961,411 -
------------- -------------
LOSS FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES (1,644,436) (941,781)
INCOME TAX PROVISION (BENEFIT) - -
------------- -------------
LOSS FROM CONTINUING OPERATIONS (1,644,436) (941,781)
DISCONTINUED OPERATIONS, NET OF INCOME TAXES (13,745) (100,831)
------------- -------------
NET LOSS $ (1,658,181) $(1,042,612)
============= =============
Earnings (loss) per share:
Basic and diluted, from continuing operations $ (0.28) $ (0.16)
Basic and diluted, discontinued operations $ - $ (0.02)
Basic and diluted, on net loss $ (0.28) $ (0.18)
OTHER DATA:
EBITDA (1) 335,167 (29,662)
Weighted average shares outstanding (diluted) 5,927,904 5,908,577
See next page for footnote (1)
(1) 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.
OBIE MEDIA CORPORATION
SUPPLEMENTAL DISCLOSURES
RECONCILIATION OF GAAP NET INCOME (LOSS) TO EBITDA
(UNAUDITED)
Three Months Ended February
-------------------------------
2004 2003
-------------- --------------
Reported GAAP net loss $ (1,658,181) $ (1,042,612)
Add interest expense 548,574 543,998
Add depreciation and amortization 483,363 468,952
Add Loss on extinguishment of debt 961,411 -
Add provision for income taxes - -
-------------- --------------
EBITDA $ 335,167 $ (29,662)
============== ==============
RECONCILIATION OF GAAP NET LOSS TO ADJUSTED NET LOSS
(UNAUDITED)
Three Months Ended February
-------------------------------
2004 2003
-------------- --------------
Reported GAAP net loss $ (1,658,181) $ (1,042,612)
Add loss on debt extinguishment 961,411 -
-------------- --------------
Adjusted Net Loss $ (696,770) $ (1,042,612)
============== ==============
RECONCILIATION OF GAAP NET LOSS PER SHARE TO ADJUSTED NET LOSS PER SHARE
(UNAUDITED)
Three Months Ended February
-------------------------------
2004 2003
-------------- --------------
Basic and diluted reported GAAP net loss per
share $ (0.28) $ (0.18)
Add loss on debt extinguishment $ 0.16 $ -
-------------- --------------
Basic and diluted adjusted net loss per share $ (0.12) $ (0.18)
============== ==============
OBIE MEDIA CORPORATION
Consolidated Balance Sheets
ASSETS
February 29, 2004 November 30, 2003
(Unaudited)
---------------- ----------------
CURRENT ASSETS:
Cash $ 712,938 $ 1,943,169
Accounts receivable, net 4,462,465 5,774,226
Prepaids and other current assets 5,847,901 5,099,504
Deferred income taxes 1,541,745 1,543,750
-------------- --------------
Total current assets 12,565,049 14,360,649
Property and equipment, net 14,572,955 14,886,619
Goodwill, net 5,448,552 5,448,552
Other assets 1,709,098 749,936
-------------- --------------
$ 34,295,654 $ 35,445,756
============== ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt $ 1,000,000 $ 1,723,695
Working capital revolver 4,151,793 3,890,483
Accounts payable 396,914 307,901
Accrued transit fees 594,146 1,148,124
Accrued expenses 882,564 1,220,754
Income taxes payable - 214,540
Unearned revenue 1,221,506 928,051
-------------- --------------
Total current liabilities 8,246,923 9,433,548
Deferred tax liability 1,583,468 1,586,631
Long-term debt, net 18,914,404 17,246,748
-------------- --------------
Total liabilities 28,744,795 28,266,927
-------------- --------------
Shareholders' equity:
Preferred stock, without par value,
10,000,000 shares authorized, no shares
issued or outstanding
Common stock, without par value,
20,000,000 shares authorized, 5,985,110
and 5,913,602 shares issued and
outstanding at February 29, 2004 and
November 30, 2003 respectively 17,469,554 17,282,128
Deferred stock based compensation (117,763) -
Other comprehensive income (loss) (84,947) (45,495)
Accumulated deficit (11,715,985) (10,057,804)
-------------- --------------
Total shareholders' equity 5,550,859 7,178,829
-------------- --------------
$ 34,295,654 $ 35,445,756
============== ==============