Delaware (State or other jurisdiction of incorporation) |
1-11588 (Commission File Number) |
38-3042953 (IRS Employer Identification No.) |
73 Kercheval Avenue | ||
Grosse Pointe Farms, MI (Address of Principal Executive Offices) |
48236 (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. | Results of Operations and Financial Condition. |
Item 9.01. | Financial Statements and Exhibits. |
SAGA COMMUNICATIONS, INC. |
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Dated: August 4, 2011 | By: | /s/ Samuel D. Bush | ||
Samuel D. Bush | ||||
Senior Vice President, Chief Financial Officer and Treasurer | ||||
Exhibit No. | Description | |
99.1 | Press Release dated August 4, 2011. |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Operating Results |
||||||||||||||||
Net operating revenue
|
$ | 33,183 | $ | 32,887 | $ | 61,891 | $ | 60,874 | ||||||||
Station operating expense
|
23,623 | 23,157 | 46,359 | 45,717 | ||||||||||||
Corporate general and administrative
|
1,949 | 1,897 | 3,889 | 3,779 | ||||||||||||
Operating income
|
7,611 | 7,833 | 11,643 | 11,378 | ||||||||||||
Interest expense
|
1,034 | 1,468 | 2,191 | 2,987 | ||||||||||||
Write-off revolving credit facility debt issuance costs
|
1,326 | | 1,326 | | ||||||||||||
Other (income) expense, net
|
(95 | ) | 185 | (27 | ) | (3,411 | ) | |||||||||
Income before income tax
|
5,346 | 6,180 | 8,153 | 11,802 | ||||||||||||
Income tax expense
|
2,176 | 2,485 | 3,321 | 4,790 | ||||||||||||
Net income
|
$ | 3,170 | $ | 3,695 | $ | 4,832 | $ | 7,012 | ||||||||
Earnings per share |
||||||||||||||||
Basic
|
$ | 0.75 | $ | 0.87 | $ | 1.14 | $ | 1.66 | ||||||||
Diluted
|
$ | 0.75 | $ | 0.87 | $ | 1.14 | $ | 1.66 | ||||||||
Weighted average common shares
|
4,242 | 4,236 | 4,237 | 4,229 | ||||||||||||
Weighted average common and common |
||||||||||||||||
equivalent shares
|
4,245 | 4,237 | 4,242 | 4,229 | ||||||||||||
Free Cash Flow |
||||||||||||||||
Net income
|
$ | 3,170 | $ | 3,695 | $ | 4,832 | $ | 7,012 | ||||||||
Plus: Depreciation and amortization: |
||||||||||||||||
Station
|
1,762 | 1,853 | 3,513 | 3,698 | ||||||||||||
Corporate
|
59 | 54 | 113 | 106 | ||||||||||||
Deferred tax provision
|
1,395 | 1,015 | 2,050 | 2,195 | ||||||||||||
Non-cash compensation
|
74 | 230 | 236 | 528 | ||||||||||||
Debt issuance cost write-off
|
1,326 | | 1,326 | | ||||||||||||
Other (income) expense, net
|
(95 | ) | 185 | (27 | ) | (3,411 | ) | |||||||||
Less: Capital expenditures
|
(1,377 | ) | (1,301 | ) | (2,522 | ) | (2,146 | ) | ||||||||
Free cash flow
|
$ | 6,314 | $ | 5,731 | $ | 9,521 | $ | 7,982 | ||||||||
Balance Sheet Data |
||||||||||||||||
Working capital
|
$ | 22,525 | $ | 10,694 | ||||||||||||
Net fixed assets
|
$ | 64,545 | $ | 67,330 | ||||||||||||
Net intangible assets and other assets
|
$ | 96,932 | $ | 96,954 | ||||||||||||
Total assets
|
$ | 201,623 | $ | 206,405 | ||||||||||||
Long-term debt (including current |
||||||||||||||||
portion of $3,000 and $17,278, respectively)
|
$ | 89,078 | $ | 113,578 | ||||||||||||
Stockholders equity
|
$ | 85,030 | $ | 71,555 |
Corporate | ||||||||||||||||
Radio | Television | and Other | Consolidated | |||||||||||||
Three Months Ended June 30,
2011: |
||||||||||||||||
Net operating revenue |
$ | 28,611 | $ | 4,572 | $ | | $ | 33,183 | ||||||||
Station operating expense |
20,004 | 3,619 | | 23,623 | ||||||||||||
Corporate G&A |
| | 1,949 | 1,949 | ||||||||||||
Operating income (loss) |
$ | 8,607 | $ | 953 | $ | (1,949 | ) | $ | 7,611 | |||||||
Depreciation and amortization |
$ | 1,348 | $ | 414 | $ | 59 | $ | 1,821 | ||||||||
Corporate | ||||||||||||||||
Radio | Television | and Other | Consolidated | |||||||||||||
Three Months Ended June 30,
2010: |
||||||||||||||||
Net operating revenue |
$ | 28,661 | $ | 4,226 | $ | | $ | 32,887 | ||||||||
Station operating expense |
19,827 | 3,330 | | 23,157 | ||||||||||||
Corporate G&A |
| | 1,897 | 1,897 | ||||||||||||
Operating income (loss) |
$ | 8,834 | $ | 896 | $ | (1,897 | ) | $ | 7,833 | |||||||
Depreciation and amortization |
$ | 1,444 | $ | 409 | $ | 54 | $ | 1,907 | ||||||||
Corporate | ||||||||||||||||
Radio | Television | and Other | Consolidated | |||||||||||||
Six Months Ended June 30, 2011: |
||||||||||||||||
Net operating revenue |
$ | 53,117 | $ | 8,774 | $ | | $ | 61,891 | ||||||||
Station operating expense |
39,282 | 7,077 | | 46,359 | ||||||||||||
Corporate G&A |
| | 3,889 | 3,889 | ||||||||||||
Operating income (loss) |
$ | 13,835 | $ | 1,697 | $ | (3,889 | ) | $ | 11,643 | |||||||
Depreciation and amortization |
$ | 2,687 | $ | 826 | $ | 113 | $ | 3,626 | ||||||||
Corporate | ||||||||||||||||
Radio | Television | and Other | Consolidated | |||||||||||||
Six Months Ended June 30, 2010: |
||||||||||||||||
Net operating revenue |
$ | 52,805 | $ | 8,069 | $ | | $ | 60,874 | ||||||||
Station operating expense |
39,050 | 6,667 | | 45,717 | ||||||||||||
Corporate G&A |
| | 3,779 | 3,779 | ||||||||||||
Operating income (loss) |
$ | 13,755 | $ | 1,402 | $ | (3,779 | ) | $ | 11,378 | |||||||
Depreciation and amortization |
$ | 2,865 | $ | 833 | $ | 106 | $ | 3,804 | ||||||||
Less: | Plus: | Trailing | ||||||||||||||
12 Mos Ended | 6 Mos Ended | 6 Mos Ended | 12 Mos Ended | |||||||||||||
December 31, | June 30, | June 30, | June 30, | |||||||||||||
2010 | 2010 | 2011 | 2011 | |||||||||||||
Trailing 12 Month Consolidated EBITDA (1) |
||||||||||||||||
Net income |
$ | 15,136 | $ | 7,012 | $ | 4,832 | $ | 12,956 | ||||||||
Less: Loss on sale of assets |
(386 | ) | (336 | ) | (80 | ) | (130 | ) | ||||||||
Other gains |
| 186 | 105 | (81 | ) | |||||||||||
Gain on license downgrade |
3,756 | 3,561 | | 195 | ||||||||||||
Loss on Write Off of Unamortized Debt Issuance Costs |
| | (1,326 | ) | (1,326 | ) | ||||||||||
Other |
46 | 159 | 189 | 76 | ||||||||||||
Total exclusions |
3,416 | 3,570 | (1,112 | ) | (1,266 | ) | ||||||||||
Consolidated Adjusted Net Income (1) |
11,720 | 3,442 | 5,944 | 14,222 | ||||||||||||
Plus: Interest expense |
5,622 | 2,987 | 2,191 | 4,826 | ||||||||||||
Income tax expense |
10,400 | 4,790 | 3,321 | 8,931 | ||||||||||||
Depreciation & amortization expense |
7,718 | 3,806 | 3,626 | 7,538 | ||||||||||||
Amortization of television syndicated programming
contracts |
732 | 361 | 236 | 607 | ||||||||||||
Non-cash stock based compensation expense |
927 | 528 | 370 | 769 | ||||||||||||
Less: Cash television programming payments |
(744 | ) | (366 | ) | (364 | ) | (742 | ) | ||||||||
Trailing twelve month consolidated EBITDA (1) |
$ | 36,375 | $ | 15,548 | $ | 15,324 | $ | 36,151 | ||||||||
Total long-term debt, including current maturities |
$ | 89,078 | ||||||||||||||
Divided by trailing twelve month consolidated EBITDA (1) |
36,151 | |||||||||||||||
Leverage ratio |
2.5 | |||||||||||||||