Delaware | 1-11588 | 38-3042953 | ||
(State or other jurisdiction | (Commission File Number) | (IRS Employer | ||
of incorporation) | Identification No.) |
73 Kercheval Avenue | ||
Grosse Pointe Farms, MI | 48236 | |
(Address of Principal Executive Offices) | (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. |
(d) | Exhibits. |
99.1 | Press Release dated November 3, 2011. |
SAGA COMMUNICATIONS, INC. |
||||
Dated: November 3, 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 November 3, 2011. |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Operating Results |
||||||||||||||||
Net operating revenue |
$ | 32,494 | $ | 32,810 | $ | 94,385 | $ | 93,684 | ||||||||
Station operating expense |
23,553 | 23,629 | 69,912 | 69,346 | ||||||||||||
Corporate general and administrative |
1,965 | 1,741 | 5,854 | 5,520 | ||||||||||||
Operating income |
6,976 | 7,440 | 18,619 | 18,818 | ||||||||||||
Interest expense |
646 | 1,375 | 2,837 | 4,362 | ||||||||||||
Write-off revolving credit facility debt issuance costs |
| | 1,326 | | ||||||||||||
Other (income) expense, net |
27 | 13 | | (3,398 | ) | |||||||||||
Income before income tax |
6,303 | 6,052 | 14,456 | 17,854 | ||||||||||||
Income tax expense |
2,609 | 2,495 | 5,930 | 7,285 | ||||||||||||
Net income |
$ | 3,694 | $ | 3,557 | $ | 8,526 | $ | 10,569 | ||||||||
Earnings per share |
||||||||||||||||
Basic |
$ | 0.87 | $ | 0.84 | $ | 2.01 | $ | 2.50 | ||||||||
Diluted |
$ | 0.87 | $ | 0.84 | $ | 2.01 | $ | 2.50 | ||||||||
Weighted average common shares |
4,242 | 4,236 | 4,238 | 4,230 | ||||||||||||
Weighted average common and common
equivalent shares |
4,246 | 4,236 | 4,242 | 4,230 | ||||||||||||
Free Cash Flow |
||||||||||||||||
Net income |
$ | 3,694 | $ | 3,557 | $ | 8,526 | $ | 10,569 | ||||||||
Plus: Depreciation and amortization: |
||||||||||||||||
Station |
1,826 | 1,885 | 5,339 | 5,583 | ||||||||||||
Corporate |
60 | 57 | 173 | 163 | ||||||||||||
Deferred tax provision |
1,900 | 1,430 | 3,950 | 3,625 | ||||||||||||
Non-cash compensation |
75 | 187 | 311 | 715 | ||||||||||||
Debt issuance cost write-off |
| | 1,326 | | ||||||||||||
Other (income) expense, net |
27 | 13 | | (3,398 | ) | |||||||||||
Less: Capital expenditures |
(1,618 | ) | (1,113 | ) | (4,140 | ) | (3,259 | ) | ||||||||
Free cash flow |
$ | 5,964 | $ | 6,016 | $ | 15,485 | $ | 13,998 | ||||||||
Balance Sheet Data |
||||||||||||||||
Working capital |
$ | 14,748 | $ | 15,185 | ||||||||||||
Net fixed assets |
$ | 64,211 | $ | 66,473 | ||||||||||||
Net intangible assets and other assets |
$ | 96,675 | $ | 97,117 | ||||||||||||
Total assets |
$ | 192,190 | $ | 202,720 | ||||||||||||
Long-term debt (including current
portion of $4,000 and $11,088, respectively) |
$ | 76,328 | $ | 105,578 | ||||||||||||
Stockholders equity |
$ | 88,798 | $ | 75,298 |
Corporate | ||||||||||||||||
Radio | Television | and Other | Consolidated | |||||||||||||
Three Months Ended September 30, 2011: |
||||||||||||||||
Net operating revenue |
$ | 27,885 | $ | 4,609 | $ | | $ | 32,494 | ||||||||
Station operating expense |
20,029 | 3,524 | | 23,553 | ||||||||||||
Corporate G&A |
| | 1,965 | 1,965 | ||||||||||||
Operating income (loss) |
$ | 7,856 | $ | 1,085 | $ | (1,965 | ) | $ | 6,976 | |||||||
Depreciation and amortization |
$ | 1,385 | $ | 441 | $ | 60 | $ | 1,886 | ||||||||
Corporate | ||||||||||||||||
Radio | Television | and Other | Consolidated | |||||||||||||
Three Months Ended September 30, 2010: |
||||||||||||||||
Net operating revenue |
$ | 28,089 | $ | 4,721 | $ | | $ | 32,810 | ||||||||
Station operating expense |
20,134 | 3,495 | | 23,629 | ||||||||||||
Corporate G&A |
| | 1,741 | 1,741 | ||||||||||||
Operating income (loss) |
$ | 7,955 | $ | 1,226 | $ | (1,741 | ) | $ | 7,440 | |||||||
Depreciation and amortization |
$ | 1,447 | $ | 438 | $ | 57 | $ | 1,942 | ||||||||
Corporate | ||||||||||||||||
Radio | Television | and Other | Consolidated | |||||||||||||
Nine Months Ended September 30, 2011: |
||||||||||||||||
Net operating revenue |
$ | 81,002 | $ | 13,383 | $ | | $ | 94,385 | ||||||||
Station operating expense |
59,311 | 10,601 | | 69,912 | ||||||||||||
Corporate G&A |
| | 5,854 | 5,854 | ||||||||||||
Operating income (loss) |
$ | 21,691 | $ | 2,782 | $ | (5,854 | ) | $ | 18,619 | |||||||
Depreciation and amortization |
$ | 4,072 | $ | 1,267 | $ | 173 | $ | 5,512 | ||||||||
Corporate | ||||||||||||||||
Radio | Television | and Other | Consolidated | |||||||||||||
Nine Months Ended September 30, 2010: |
||||||||||||||||
Net operating revenue |
$ | 80,894 | $ | 12,790 | $ | | $ | 93,684 | ||||||||
Station operating expense |
59,184 | 10,162 | | 69,346 | ||||||||||||
Corporate G&A |
| | 5,520 | 5,520 | ||||||||||||
Operating income (loss) |
$ | 21,710 | $ | 2,628 | $ | (5,520 | ) | $ | 18,818 | |||||||
Depreciation and amortization |
$ | 4,312 | $ | 1,271 | $ | 163 | $ | 5,746 | ||||||||
Less: | Plus: | Trailing | ||||||||||||||
12 Mos Ended | 9 Mos Ended | 9 Mos Ended | 12 Mos Ended | |||||||||||||
December 31, | September 30, | September 30, | September 30, | |||||||||||||
2010 | 2010 | 2011 | 2011 | |||||||||||||
Trailing 12 Month Consolidated EBITDA (1) |
||||||||||||||||
Net income |
$ | 15,136 | $ | 10,569 | $ | 8,526 | $ | 13,093 | ||||||||
Less: Loss on sale of assets |
(386 | ) | (364 | ) | (109 | ) | (131 | ) | ||||||||
Other gains |
| 201 | 109 | (92 | ) | |||||||||||
Gain on license downgrade |
3,756 | 3,561 | | 195 | ||||||||||||
Loss on write-off of unamortized debt issuance costs |
| | (1,326 | ) | (1,326 | ) | ||||||||||
Other |
46 | 24 | 201 | 223 | ||||||||||||
Total exclusions |
3,416 | 3,422 | (1,125 | ) | (1,131 | ) | ||||||||||
Consolidated adjusted net income (1) |
11,720 | 7,147 | 9,651 | 14,224 | ||||||||||||
Plus: Interest expense |
5,622 | 4,362 | 2,837 | 4,097 | ||||||||||||
Income tax expense |
10,400 | 7,285 | 5,930 | 9,045 | ||||||||||||
Depreciation & amortization expense |
7,718 | 5,746 | 5,512 | 7,484 | ||||||||||||
Amortization of television syndicated programming
contracts |
732 | 541 | 543 | 734 | ||||||||||||
Non-cash stock based compensation expense |
927 | 715 | 311 | 523 | ||||||||||||
Less: Cash television programming payments |
(744 | ) | (552 | ) | (536 | ) | (728 | ) | ||||||||
Trailing twelve month consolidated EBITDA (1) |
$ | 36,375 | $ | 25,244 | $ | 24,248 | $ | 35,379 | ||||||||
Total long-term debt, including current maturities |
$ | 76,328 | ||||||||||||||
Divided by trailing twelve month consolidated EBITDA (1) |
35,379 | |||||||||||||||
Leverage ratio |
2.2 | |||||||||||||||