-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, IMthkK347JTG/Ri5TETFZpA8A1GHewkCVdM5uAfxl+yQKidQ6c4zbd5ow1pb05OR xjVzHffQBLHEw2DzHHgTog== 0001193125-04-187231.txt : 20041105 0001193125-04-187231.hdr.sgml : 20041105 20041105100150 ACCESSION NUMBER: 0001193125-04-187231 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20041104 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20041105 DATE AS OF CHANGE: 20041105 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FISHER COMMUNICATIONS INC CENTRAL INDEX KEY: 0001034669 STANDARD INDUSTRIAL CLASSIFICATION: TELEVISION BROADCASTING STATIONS [4833] IRS NUMBER: 910222175 STATE OF INCORPORATION: WA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-22439 FILM NUMBER: 041121304 BUSINESS ADDRESS: STREET 1: 100 FOURTH AVENUE NORTH STREET 2: SUITE 440 CITY: SEATTLE STATE: WA ZIP: 98109-4932 BUSINESS PHONE: 2064047000 MAIL ADDRESS: STREET 1: 100 FOURTH AVENUE NORTH STREET 2: SUITE 440 CITY: SEATTLE STATE: WA ZIP: 98109-4932 FORMER COMPANY: FORMER CONFORMED NAME: FISHER COMPANIES INC DATE OF NAME CHANGE: 19970226 8-K 1 d8k.htm FORM 8-K Form 8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


 

Form 8-K

 


 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

 

November 4, 2004

Date of Report

(Date of earliest event reported)

 


 

FISHER COMMUNICATIONS, INC.

(Exact Name of Registrant as Specified in Charter)

 


 

Washington   000-22439   91-0222175

(State or Other Jurisdiction

of Incorporation)

  (Commission File No.)  

(IRS Employer

Identification No.)

 

100 Fourth Avenue N., Suite 510, Seattle, Washington 98109

(Address of Principal Executive Offices, including Zip Code)

 

(206) 404-7000

(Registrant’s Telephone Number, Including Area Code)

 

 

(Former Name or Former Address, if Changed Since Last Report)

 


 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 



The information furnished under Item 2.02 and Item 9.01 of this Current Report on Form 8-K, including the exhibit attached hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as expressly set forth by specific reference in such filing.

 

Item 2.02. Results of Operations and Financial Condition

 

On November 4, 2004, Fisher Communications, Inc. issued an earnings release announcing its financial results for the quarter ended September 30, 2004. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

 

Item 9.01. Financial Statements and Exhibits

 

  (c) Exhibits

 

  99.1 Press release issued by Fisher Communications, Inc.


SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    FISHER COMMUNICATIONS, INC.

Dated: November 4, 2004

 

By

 

/s/ Robert C. Bateman


       

Robert C. Bateman

       

Senior Vice President

       

Chief Financial Officer


Index to Exhibits

 

Exhibit
Number


  

Description


99.1    Press Release issued November 4, 2004.

 

EX-99.1 2 dex991.htm PRESS RELEASE Press Release

EXHIBIT 99.1

 

FOR IMMEDIATE RELEASE

 

  LOGO

 

CONTACT:             Robert C. Bateman, CFO of Fisher Communications, Inc. (206) 404-6776

 

FISHER COMMUNICATIONS ANNOUNCES THIRD QUARTER 2004 RESULTS

 

SEATTLE—(BUSINESS WIRE)—November 5, 2004—Fisher Communications, Inc. (Nasdaq: FSCI) today announced its financial results for the third quarter and year-to-date periods ended September 30, 2004.

 

Fisher Communication’s revenue in the third quarter of 2004 increased 11.1% to $40.3 million, compared to $36.2 million in the third quarter of 2003. Revenue for the nine months ended September 30, 2004 increased 7.4% to $111.5 million, compared to $103.9 million in the nine months ended September 30, 2003. The increases in revenue in the 2004 periods were primarily due to higher political advertising, as well as generally higher local advertising. “We saw strong candidate and advocacy advertising during the third quarter of 2004,” stated William W. Krippaehne Jr., President and CEO of Fisher Communications. “Though the industry has seen a general softness in other national advertising, we are beginning to see positive signs that the Northwest economy is improving, and we are pleased that ABC television network programming is showing early signs of success this season.” The Company’s two ABC-affiliated television stations in Seattle, Washington and Portland, Oregon, comprised approximately half of the Company’s total revenues in the nine months ended September 30, 2004.

 

Total revenues include the operations of Fisher Plaza, a communications center located near downtown Seattle that houses the Company’s Seattle broadcasting operations and its corporate headquarters. Occupancy commitments at Fisher Plaza reached 87% as of September 30, 2004, compared to 70% at December 31, 2003.

 

As compared to the same periods in 2003, total revenues increased in the three and nine-month periods ended September 30, 2004; however, total operating expenses decreased in the 2004 periods. These overall decreases in operating expenses were attributable to certain non-recurring general and administrative expenses incurred in 2003, including retention and pension termination expenses, as well as tight controls over expenditures. These overall declines in general and administrative expenses in the three and nine-month 2004 periods, as compared to the same periods in 2003, were offset in part by increased expenditures for the Company’s compliance with the internal control documentation and testing provisions relating to the Sarbanes-Oxley Act of 2002.


On September 20, 2004 the Company completed the private placement of $150 million of 8.625% senior notes due 2014 to qualified institutional buyers pursuant to Rule 144A of the Securities Act of 1933. The Company has agreed to use commercially reasonable efforts to file a registration statement within 120 days of the issuance of the notes, with respect to an offer to exchange the notes for freely tradable notes. Interest on the notes is payable semiannually on March 15 and September 15 of each year, commencing March 15, 2005. Of the total cash proceeds of $144.5 million, net of transaction costs, $143.9 million was used to retire the Company’s broadcasting subsidiary’s credit facility and the Company’s media services subsidiary’s credit facility, and to settle the outstanding obligations under the Company’s variable forward sales transaction. On September 20, 2004, the Company also entered into a new six-year senior credit facility. No amounts were outstanding under this six-year senior credit facility at September 30, 2004.

 

The Company’s operating results include gains and losses from derivative instruments related directly to corporate borrowing agreements. The Company previously maintained an interest rate swap agreement under a prior debt facility; this interest rate swap terminated in the first quarter of 2004. The Company entered into a variable forward sales transaction with a financial institution in March 2002, collateralized by shares of Safeco Corporation common stock owned by the Company. On November 4, 2004 the Company terminated all remaining tranches of this variable forward sales transaction. In connection with the termination, the Company paid a cash termination fee of $16.1 million, which eliminated the accrued loss liability of $16.7 million the Company had recorded on its balance sheet as of September 30, 2004. As a result of the termination, all shares of Safeco Corporation common stock owned by the Company are now unencumbered; these shares had a market value of $137.1 million as of September 30, 2004. The Company recognized a loss of $2.7 million on derivative instruments in the third quarter of 2004, compared to a gain of $49,000 in the third quarter of 2003. For the nine months ended September 30, 2004, the Company recognized a loss of $13.2 million on derivative instruments, compared to a gain of $460,000 for the nine months ended September 30, 2003.

 

Net loss for the three months ended September 30, 2004 was $5.2 million, compared to a net loss of $4.3 million in the three months ended September 30, 2003. Net loss for the nine months ended September 30, 2004 was $16.5 million, compared to a net loss of $11.5 million in the nine months ended September 30, 2003.

 

For further information about Fisher Communications, visit the corporate website at www.fsci.com.

 

###

 

Fisher Communications, Inc. is a Seattle-based integrated media company. Its 9 network-affiliated television stations, and a tenth station 50% owned by Fisher Communications, are located in Washington, Oregon, and Idaho, and its 27 radio stations broadcast in Washington and Montana. It also owns and operates Fisher Plaza, a facility located near downtown Seattle.


FISHER COMMUNICATIONS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

     Nine months ended
September 30


    Three months ended
September 30


 

(in thousands, except per-share amounts) Unaudited


   2004

    2003

    2004

    2003

 

Revenue

   $ 111,517     $ 103,858     $ 40,251     $ 36,226  

Costs and expenses

                                

Cost of services sold

     53,449       54,108       19,870       19,006  

Selling expenses

     20,857       19,082       7,343       6,916  

General and administrative expenses

     26,093       30,666       8,117       9,626  

Depreciation and amortization

     12,255       11,787       3,940       3,859  
    


 


 


 


       112,654       115,643       39,270       39,407  
    


 


 


 


Income (loss) from operations

     (1,137 )     (11,785 )     981       (3,181 )

Net gain (loss) on derivative instruments

     (13,245 )     460       (2,700 )     49  

Loss from extinguishment of long-term debt

     (5,034 )             (5,034 )        

Other income, net

     2,247       5,746       780       658  

Interest expense, net

     (8,321 )     (9,023 )     (2,554 )     (2,811 )
    


 


 


 


Loss from continuing operations before income taxes

     (25,490 )     (14,602 )     (8,527 )     (5,285 )

Benefit for federal and state income taxes

     (9,121 )     (5,829 )     (3,315 )     (2,007 )
    


 


 


 


Loss from continuing operations

     (16,369 )     (8,773 )     (5,212 )     (3,278 )

Loss from discontinued operations, net of income taxes

     (132 )     (2,758 )             (1,020 )
    


 


 


 


Net loss

   $ (16,501 )   $ (11,531 )   $ (5,212 )   $ (4,298 )
    


 


 


 


Loss per share:

                                

From continuing operations

   $ (1.90 )   $ (1.02 )   $ (0.60 )   $ (0.38 )

From discontinued operations

     (0.01 )     (0.32 )             (0.12 )
    


 


 


 


Net loss per share

   $ (1.91 )   $ (1.34 )   $ (0.60 )   $ (0.50 )
    


 


 


 


Weighted average shares outstanding

     8,617       8,595       8,619       8,597  

 

FISHER COMMUNICATIONS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

 

(in thousands) Unaudited


  

September 30

2004


   December 31
2003


Assets

             

Current assets

   $ 71,836    $ 53,525

Marketable securities, at market value

     137,058      116,882

Other assets

     68,017      66,435

Property, plant and equipment, net

     150,502      159,843
    

  

Total assets

   $ 427,413    $ 396,685
    

  

Liabilities and Stockholders’ Equity

             

Notes payable and current portion of long-term debt

   $ 53    $ 1,526

Other current liabilities

     29,818      28,780

Long-term debt, net of current maturities

     150,000      127,331

Deferred income taxes

     29,245      25,980

Other liabilities

     33,410      25,264
    

  

Total liabilities

     242,526      208,881
    

  

Stockholders’ equity, other than accumulated other comprehensive income

     98,684      114,715

Accumulated other comprehensive income, net of income taxes

     86,203      73,089
    

  

Total stockholders’ equity

     184,887      187,804
    

  

Total liabilities and stockholders’ equity

   $ 427,413    $ 396,685
    

  

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