Exhibit 99.1
[OBIE MEDIA LOGO OMITTED]
NEWS ANNOUNCEMENT
CONTACT: GARY LIVESAY
VICE PRESIDENT AND CFO
(541) 686-8400
JULY 15, 2004
OBIE MEDIA REPORTS F2004 QUARTER TWO RESULTS
o NET REVENUE INCREASES BY 11.8% TO $11,887,892
o QUARTERLY EBITDA INCREASES BY 60.7% TO $1,135,772
o SECOND QUARTER EBITDA BEST IN 4 YEARS
o 2004 SALES CONTINUE TO PACE WELL AHEAD OF 2003 LEVELS
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, 2004.
Net revenue for the quarter was $11,887,892, an increase of 11.8% over second
quarter 2003's net revenue of $10,635,314. Revenue from transit advertising was
$9,795,336, compared to $9,053,680 the year before, and revenue from billboard
advertising was $2,092,556 in second quarter 2004, compared to $1,581,634 in the
previous year's second quarter. The Company reported a net profit for the 2004
second quarter of $5,197 ($0.00 per share), an improvement on the same period in
2003 when the Company reported a net loss of $461,396 ($0.08 per share).
Earnings before interest, taxes, depreciation and amortization (EBITDA), a
common measurement for out-of-home advertising companies, was $1,135,772 for
second quarter 2004, a 60.7% increase over the EBITDA of $706,887 in the same
period last year. Year-to-date, this puts the Company ahead of last year's
EBITDA by approximately 117% or $800,000.
"The second quarter of fiscal 2004 saw a continuation of the significant sales
growth by both our transit and billboard divisions driven principally in each
case by our ongoing focus on annual, local direct advertising contract
business," said Brian B. Obie, Chairman and CEO of the Company.
Net revenue for the first six months ended May 31, 2004 was $21,886,415, an
increase of 13.1% over net revenue of $19,332,874 in the first half ended May
31, 2003. Revenue from transit advertising was $17,813,833 for the first half of
2004 versus $16,076,911 for the first six months ended May 31, 2003, an increase
of 10.8%. Revenue from billboard advertising was $4,052,582 for the first half
of 2004 versus $3,255,963 for the half ended May 31, 2003, an increase of 24.5%.
Obie Media reported a net loss for the six months ended May 31, 2004 of
$1,652,984 or $0.28 per share. For the same period in 2003, the net loss was
$1,504,008 or $0.25 per share.
EBITDA for the six months ended May 31, 2004 was $1,470,939 compared to $677,225
in the six-month period of 2003.
Mr. Obie went on to say, "The following sales milestones reflect my belief that
Obie Media's sales momentum continues to position the Company well for a strong
2004:
o Company-wide sales are pacing 18% ahead of last year's levels
o 93% of overall budgeted sales are committed to date for fiscal 2004
o Transit business on annual contracts is pacing 53% ahead of last year
o 99.9% of budgeted billboard sales are committed for the fiscal year."
Obie Media is also pleased to announce that Sandy Trahan has been appointed
Senior Vice President, Sales & Operations and Cherie McGrath has been appointed
Vice President, Transit Relations & Development. The move is part of the
Company's business plan to position Obie Media for significant growth over the
next five years. Both Trahan and McGrath are tenured veterans of Obie Media,
each having more than 10 years of experience working at all levels of the
Company.
Mr. Trahan will be responsible for all sales and market operations throughout
Obie Media's 40 transit markets in North America. He was promoted from Vice
President of Western North America where he oversaw market expansion
opportunities, sales,
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operations, hiring, and training in California, Oregon, Washington, Montana, and
British Columbia. He is based at the Company's headquarters in Eugene, Oregon.
Ms. McGrath will act as a liaison between Obie Media and the Company's current
transit agency partners and will be responsible for analyzing and developing
growth opportunities in new transit markets. Most recently she served as Vice
President, Southeastern Region where she oversaw Obie Media's market expansion
opportunities, sales, operations, hiring, and training in Missouri, Texas, and
Florida. She will continue to work out of Obie's Chicago office.
Conference Call Information
- ---------------------------
A conference call to review the Company's fiscal 2004 second quarter results is
scheduled for 11:30 a.m. EDT on Thursday, July 15. To listen to the call, dial
800-289-6406. 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,
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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.
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OBIE MEDIA CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended May 31 Six Months Ended May 31
-------------------------------------- -------------------------------------
2004 2003 2004 2003
------------------ ------------------ ------------------- -----------------
REVENUES:
Transit advertising $ 9,795,336 $ 9,053,680 $ 17,813,833 $ 16,076,911
Outdoor advertising 2,092,556 1,581,634 4,052,582 3,255,963
------------------ ------------------ ------------------- -----------------
Net revenue 11,887,892 10,635,314 21,866,415 19,332,874
------------------ ------------------ ------------------- -----------------
OPERATING EXPENSES:
Production and installation 1,695,157 1,559,641 3,212,918 2,921,725
Transit and outdoor occupancy 4,679,686 4,546,695 8,464,427 8,170,787
Selling 2,161,704 2,029,521 4,377,875 3,825,040
General and administrative 2,198,555 1,686,656 4,309,493 3,519,596
Depreciation and amortization 475,572 449,992 958,935 918,944
------------------ ------------------
------------------- -----------------
Total operating expenses 11,210,674 10,272,505 21,323,648 19,356,092
------------------ ------------------ ------------------- -----------------
Operating income (loss) 677,218 362,809 542,767 (23,218)
OTHER (INCOME) EXPENSE:
Interest expense 608,588 583,760 1,157,162 1,127,758
Loss on extinguishment of debt - - 961,411 -
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INCOME (LOSS) FROM CONTINUING
OPERATIONS BEFORE INCOME TAXES
68,630 (220,951) (1,575,806) (1,150,976)
INCOME TAX PROVISION 46,415 134,531 46,415 134,531
------------------ ------------------ ------------------- -----------------
INCOME (LOSS) FROM CONTINUING
OPERATIONS 22,215 (355,482) (1,622,221) (1,285,507)
DISCONTINUED OPERATIONS, NET OF
INCOME TAXES (17,018) (105,914) (30,763) (218,501)
------------------ ------------------ ------------------- -----------------
NET INCOME (LOSS) $ 5,197 $ (461,396) $ (1,652,984) $(1,504,008)
================== ================== =================== =================
Earnings (loss) per share:
Basic and diluted, from continuing operations $ 0.00 $ (0.06) $ (0.27) $ (0.21)
Basic and diluted, discontinued operations $ 0.00 $ (0.02) $ (0.01) $ (0.04)
Basic and diluted, on net income (loss) $ 0.00 $ (0.08) $ (0.28) $ (0.25)
OTHER DATA:
EBITDA (1) 1,135,772 706,887 1,470,939 677,225
Weighted average shares outstanding -
Primary 5,992,432 5,908,577 5,985,110 5,908,577
Weighted average shares outstanding - Fully
Diluted 6,003,258 5,908,577 5,985,110 5,908,577
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(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. Following is a reconciliation of EBITDA to net income (loss):
OBIE MEDIA CORPORATION
SUPPLEMENTAL DISCLOSURE
RECONCILICATION OF GAAP NET INCOME (LOSS) TO EBITDA
(UNAUDITED)
Three Months Ended May 31 Six Months Ended May 31
-------------------------------------- ------------------------------------
2004 2003 2004 2003
-------------------------------------- ------------------ -----------------
Reported GAAP net income (loss) 5,197 (461,396) (1,652,984) (1,504,008)
Add interest expense 608,588 583,760 1,157,162 1,127,758
Add depreciation and amortization 475,572 449,992 958,935 918,944
Add loss on extinguishment of debt - - 961,411 -
Add provision for income taxes 46,415 134,531 46,415 134,531
------------------- ------------------ ------------------ -----------------
EBITDA 1,135,772 706,887 1,470,939 677,225
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OBIE MEDIA CORPORATION
Consolidated Condensed Balance Sheets
ASSETS
May 31, November 30,
2004 2003
(Unaudited)
------------------- ------------------
CURRENT ASSETS:
Cash $ 447,059 $ 1,943,169
Accounts receivable, net 5,194,777 5,774,226
Prepaids and other current assets 6,410,081 5,099,504
Deferred income taxes 1,540,315 1,543,750
------------------- ------------------
Total current assets 13,592,232 14,360,649
Property and equipment, net 14,341,446 14,886,619
Goodwill, net 5,448,552 5,448,552
Other assets 1,658,828 749,936
------------------- ------------------
$ 35,041,058 $ 35,445,756
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt $ 1,000,000 $ 1,723,695
Working capital revolver 5,082,876 3,890,483
Accounts payable 219,665 307,901
Accrued transit fees 710,361 1,148,124
Accrued expenses 1,239,774 1,220,754
Income taxes payable - 214,540
Unearned revenue 982,013 928,051
------------------- ------------------
Total current liabilities 9,234,689 9,433,548
Deferred tax liability 1,581,212 1,586,631
Long-term debt, net 18,643,718 17,246,748
------------------- ------------------
Total liabilities 29,459,619 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 May 31, 2004 and November 30,
2003, respectively 17,469,552 17,282,128
Deferred stock based compensation (103,041) -
Other comprehensive loss (74,286) (45,495)
Accumulated deficit (11,710,788) (10,057,804)
------------------- ------------------
Total shareholders' equity 5,581,439 7,178,829
------------------- ------------------
$ 35,041,058 $ 35,445,756
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