-----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, Tv7d3mk/+tNKljM2G0EXOKAib6wiC7zB8ulosNna5ysm1c9dtG6RaKst11r4mZee 26Sh5YMpfVH8ytHSlDvOWA== 0000950124-03-003452.txt : 20031106 0000950124-03-003452.hdr.sgml : 20031106 20031106080140 ACCESSION NUMBER: 0000950124-03-003452 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031106 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20031106 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SAGA COMMUNICATIONS INC CENTRAL INDEX KEY: 0000886136 STANDARD INDUSTRIAL CLASSIFICATION: RADIO BROADCASTING STATIONS [4832] IRS NUMBER: 383042953 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11588 FILM NUMBER: 03980965 BUSINESS ADDRESS: STREET 1: 73 KERCHEVAL AVE CITY: GROSSE POINTE FARMS STATE: MI ZIP: 48236 BUSINESS PHONE: 3138867070 MAIL ADDRESS: STREET 1: 73 KERCHEVAL AVE CITY: GROSSE POINTE FARMS STATE: MI ZIP: 48236 8-K 1 k80735e8vk.txt FORM 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): November 6, 2003 SAGA COMMUNICATIONS, INC. (Exact Name of Registrant as Specified in its Charter) 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) Registrant's telephone number, including area code: (313) 886-7070 ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS. (c) Exhibits 99.1 Press Release dated November 6, 2003. ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On November 6, 2003, Saga Communications, Inc., issued a press release announcing its results of operations for the quarter ended September 30, 2003. The press release, dated November 6, 2003, is attached as Exhibit 99.1 to this Form 8-K. SIGNATURES 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. SAGA COMMUNICATIONS, INC. Date: November 6, 2003 By: /S/ SAMUEL D. BUSH ------------------------------- Samuel D. Bush Senior Vice President, Chief Financial Officer and Treasurer 2 EXHIBIT INDEX Exhibit No. Description - ----------- ----------- 99.1 Press Release dated November 6, 2003 EX-99.1 3 k80735exv99w1.txt PRESS RELEASE EXHIBIT 99.1 [SAGA COMMUNICATIONS, INC. LETTERHEAD] Saga Communications, Inc. Reports 3rd Quarter, 2003 Results CONTACT: Samuel D. Bush 313/886-7070 Grosse Pointe Farms, MI -- November 6, 2003 -- Saga Communications, Inc. (AMEX-SGA) announced its third quarter operating results. For the quarter ended September 30, 2003, net revenue increased 2.2% over the comparable period in 2002 to approximately $30.4 million. Net income for the quarter was approximately $3.5 million ($.16 per share on a fully diluted basis) compared to $4.4 million ($.21 per share on a fully diluted basis) for the same period in 2002. Station operating income (net operating revenue less station operating expense) decreased 2.7% to approximately $11.6 million for the quarter. Net income for the quarter includes a $1.2 million write-off of unamortized debt issuance costs due to the completion of a new $200 million credit facility as of July 29, 2003. On a same station basis for the quarter, net revenue decreased $0.8 million to approximately $28.9 million and station operating income (net operating revenue less station operating expense) decreased $0.6 million to approximately $11.3 million for the quarter. For the nine months ended September 30, 2003, net revenue increased 5.9% (decreased 0.1% on a same station basis) over the comparable period in 2002 to approximately $88.4 million. Net income for the nine month period decreased 5.1% to approximately $9.4 million ($.44 per share on a fully diluted basis). Station operating income increased 0.4% (decreased 0.8% on a same station basis) to approximately $30.2 million. In comparing net revenue numbers for the quarter ended September 30, 2003 and 2002 it should be noted that in 2002 political revenue for the quarter was approximately $1.0 million in 2002 compared to $0.2 million for the same period in 2003. On a historical basis net of political revenue net revenue increased approximately 4.4% for the quarter and was approximately even with the same period last year on a same station basis. Strength in local revenue is primarily responsible for the company being able to make up the loss in political revenue year over year. Gross local revenue increased approximately 6.7% to $25.0 million on a historical basis for the quarter and 0.8% to $23.6 million on a same station basis. For the nine months the historical and same station increases are 9.6% and 2.3% respectively. National revenue continues to vary significantly by market. A comparison, compiled by Katz Media Group, Inc., indicates total available national dollars for the radio industry's largest 100 markets increased 8.9% for the nine month period ended September 30, 2003. However, in the five markets that the company operates in that are included in this compilation the total available national dollars varied significantly. Katz reported growth in total available national dollars in the Milwaukee and Des Moines markets of 18.7% and 12.6%, respectively, and decreases in total available national dollars in the Columbus, Norfolk and Springfield, MA markets of 0.8%, 1.3% and 1.9%, respectively. On a consolidated basis the company's national revenue increased on a historic basis 1.1% and decreased on a same station basis 2.1%. Capital expenditures in 2003 were approximately $2.2 million in the third quarter with approximately $1.3 million being spent as a result of acquisitions. For the first and second quarter total capital expenditures were approximately $4.2 million with approximately $1.8 million being acquisition oriented. Station operating income and free cash flow are generally recognized by the broadcasting industry as measures of performance and are used by analysts who report on the industry to provide meaningful comparisons between broadcasting groups, as well as an indicator of their market value. Station operating income and free cash flow are not measures of liquidity or of performance in accordance with generally accepted accounting principles (GAAP), and should be viewed as a supplement to and not as a substitute for the results of operations presented on a GAAP basis. The attached Selected Supplemental Financial Data table discloses "as reported", "same station" and "pro forma" information by segment. The "as reported" amounts reflect our historical financial results and include the results of operations for stations that we did not own for the entire comparable period. The "same station" amounts reflect only the results of operations for stations that we owned for the entire comparable period. The "pro forma" amounts assume the 2003 and 2002 acquisitions occurred as of January 1, 2002. Saga Communications, Inc. is a broadcasting company whose business is devoted to acquiring, developing and operating broadcast properties. The company owns or operates broadcast properties in 23 markets, including 49 FM and 27 AM radio stations, 2 state radio networks, 1 farm radio network, 4 television stations and 3 low power television stations. For additional information contact us at 313/886-7070 or on our website at www.sagacommunications.com. Saga's third quarter results conference call will be on Thursday, November 6 at 9:30AM. The dial in number for domestic calls is 800/450-0788. For international callers the number is 612/332-0637. The call can be replayed for 7 days by calling domestically 800/475-6701 or internationally 320/365-3844 and referring to access code 702792. This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words such as "believes", "expects", "anticipates", "guidance" and similar expressions are intended to identify forward-looking statements. Key risks, including risks associated with Saga's ability to effectively integrate the stations it acquires and the impact of federal regulation on Saga's business, are described in the reports Saga Communications, Inc. periodically files with the U.S. Securities and Exchange Commission. Readers should note that these statements may be impacted by several factors, including national and local economic changes and changes in the radio and television broadcast industry in general, as well as Saga's actual performance. Results may vary from those stated herein and Saga undertakes no obligation to update the information contained here. SAGA COMMUNICATIONS, INC. SELECTED CONSOLIDATED FINANCIAL DATA FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2003 AND 2002 (AMOUNTS IN 000'S EXCEPT PER SHARE DATA)
THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, 2003 2002 2003 2002 ------------------------------------------------------------------- OPERATING RESULTS Net revenue $ 30,433 $ 29,783 $ 88,364 $ 83,474 Station operating expense (excluding depreciation, amortization, corporate general and administrative) 18,838 17,868 58,148 53,365 ------------------------------------------------------------------- Station operating income (*) 11,595 11,915 30,216 30,109 Corporate general and administrative 1,794 1,511 4,935 4,345 Depreciation 1,562 1,523 4,952 4,498 Amortization 120 125 330 375 ------------------------------------------------------------------- Operating profit 8,119 8,756 19,999 20,891 Interest expense 1,081 1,344 3,773 4,052 Other (income) expense 1,215 (150) 850 (147) ------------------------------------------------------------------- Income before income tax 5,823 7,562 15,376 16,986 Income tax provision 2,356 3,176 6,031 7,135 ------------------------------------------------------------------- Net income $ 3,467 $ 4,386 $ 9,345 $ 9,851 =================================================================== Earnings per share: Basic $.17 $.21 $.45 $.48 =================================================================== Diluted $.16 $.21 $.44 $.47 =================================================================== Weighted average common shares 20,810 20,667 20,810 20,590 Weighted average common shares and common equivalents 21,292 21,016 21,303 20,990 FREE CASH FLOW Net Income $ 3,467 $ 4,386 $ 9,345 $ 9,851 Plus: Depreciation and amortization 1,682 1,648 5,282 4,873 Deferred tax provision 793 1,049 2,128 2,355 Less: Capital expenditures (2,207) (2,438) (6,410) (5,855) ------------------------------------------------------------------- Free cash flow $ 3,735 $ 4,645 $ 10,345 $ 11,224 =================================================================== BALANCE SHEET DATA Working capital $ 31,642 $ 15,653 Net fixed assets 61,355 58,131 Net intangible and other assets 149,004 122,756 Total assets 255,665 219,385 Long term debt (including current portion of $72 and $8,932, respectively) 120,793 105,252 Stockholders' equity 102,439 86,475
(*) Excluding depreciation, amortization, and corporate general and administrative SAGA COMMUNICATIONS, INC. SELECTED SUPPLEMENTAL FINANCIAL DATA FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002 (AMOUNTS IN 000'S EXCEPT PER SHARE DATA) (UNAUDITED)
AS-REPORTED SAME STATION PRO FORMA (1) CONSOLIDATED NINE MONTHS ENDED NINE MONTHS ENDED NINE MONTHS ENDED (In thousands of dollars) SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, 2003 2002 2003 2002 2003 2002 -------------------------- -------------------------- -------------------------- Net operating revenue $ 88,364 $ 83,474 $ 81,633 $ 81,731 $ 88,364 $ 87,268 Station operating expense 58,148 53,365 52,293 52,158 58,148 56,356 -------------------------- -------------------------- -------------------------- Station operating income 30,216 30,109 29,340 29,573 30,216 30,912 Corporate general and administrative 4,935 4,345 4,935 4,345 4,935 4,516 Depreciation 4,952 4,498 4,636 4,444 4,952 4,716 Amortization 330 375 269 375 330 375 -------------------------- -------------------------- -------------------------- Operating profit 19,999 20,891 $ 19,500 $ 20,409 19,999 21,305 Interest expense 3,773 4,052 3,773 4,220 Other (income) expense 850 (147) 850 (147) Income tax provision 6,031 7,135 6,031 7,239 -------------------------- -------------------------- Net income $ 9,345 $ 9,851 $ 9,345 $ 9,993 ========================== ========================== Earnings per share: Basic $0.45 $0.48 $0.45 $0.49 ========================== ========================== Diluted $0.44 $0.47 $0.44 $0.47 ========================== ========================== AS-REPORTED SAME STATION PRO FORMA (1) RADIO SEGMENT NINE MONTHS ENDED NINE MONTHS ENDED NINE MONTHS ENDED (In thousands of dollars) SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, 2003 2002 2003 2002 2003 2002 -------------------------- -------------------------- -------------------------- Net operating revenue $ 79,570 $ 74,574 $ 72,839 $ 72,831 $ 79,570 $ 78,368 Station operating expense 51,123 46,515 45,355 45,308 51,123 49,506 -------------------------- -------------------------- -------------------------- Station operating income 28,447 28,059 27,484 27,523 28,447 28,862 Depreciation 3,678 3,287 3,362 3,233 3,678 3,505 Amortization 319 357 258 357 319 357 -------------------------- -------------------------- -------------------------- Operating profit $ 24,450 $ 24,415 $ 23,864 $ 23,933 $ 24,450 $ 25,000 AS-REPORTED SAME STATION PRO FORMA (1) TELEVISION SEGMENT NINE MONTHS ENDED NINE MONTHS ENDED NINE MONTHS ENDED (In thousands of dollars) SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, 2003 2002 2003 2002 2003 2002 -------------------------- -------------------------- -------------------------- Net operating revenue $ 8,794 $ 8,900 $ 8,794 $ 8,900 $ 8,794 $ 8,900 Station operating expense 7,025 6,850 6,938 6,850 7,025 6,850 -------------------------- -------------------------- -------------------------- Station operating income 1,769 2,050 1,856 2,050 1,769 2,050 Depreciation 1,125 1,062 1,125 1,062 1,125 1,062 Amortization 11 18 11 18 11 18 -------------------------- -------------------------- -------------------------- Operating profit $ 633 $ 970 $ 720 $ 970 $ 633 $ 970
(1) Pro Forma results assume all acquisitions occurred as of January 1, 2002. SAGA COMMUNICATIONS, INC. SELECTED SUPPLEMENTAL FINANCIAL DATA FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002 (AMOUNTS IN 000'S EXCEPT PER SHARE DATA) (UNAUDITED)
AS-REPORTED SAME STATION PRO FORMA (1) CONSOLIDATED THREE MONTHS ENDED THREE MONTHS ENDED THREE MONTHS ENDED (In thousands of dollars) SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, 2003 2002 2003 2002 2003 2002 -------------------------- -------------------------- -------------------------- Net operating revenue $ 30,433 $ 29,783 $ 28,916 $ 29,671 $ 30,433 $ 30,790 Station operating expense 18,838 17,868 17,641 17,789 18,838 18,644 -------------------------- -------------------------- -------------------------- Station operating income 11,595 11,915 11,275 11,882 11,595 12,146 Corporate general and administrative 1,794 1,511 1,794 1,511 1,794 1,584 Depreciation 1,562 1,523 1,489 1,523 1,562 1,598 Amortization 120 125 90 125 120 125 -------------------------- -------------------------- -------------------------- Operating profit 8,119 8,756 $ 7,902 $ 8,723 8,119 8,839 Interest expense 1,081 1,344 1,081 1,416 Other (income) expense 1,215 (150) 1,215 (150) Income tax provision 2,356 3,176 2,356 3,181 -------------------------- -------------------------- Net income $ 3,467 $ 4,386 $ 3,467 $ 4,392 ========================== ========================== Earnings per share: Basic $0.17 $0.21 $0.17 $0.21 ========================== ========================== Diluted $0.16 $0.21 $0.16 $0.21 ========================== ========================== AS-REPORTED SAME STATION PRO FORMA (1) RADIO SEGMENT THREE MONTHS ENDED THREE MONTHS ENDED THREE MONTHS ENDED (In thousands of dollars) SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, 2003 2002 2003 2002 2003 2002 -------------------------- -------------------------- -------------------------- Net operating revenue $ 27,370 $ 26,643 $ 25,853 $ 26,531 $ 27,370 $ 27,650 Station operating expense 16,517 15,584 15,408 15,505 16,517 16,360 -------------------------- -------------------------- -------------------------- Station operating income 10,853 11,059 10,445 11,026 10,853 11,290 Depreciation 1,163 1,119 1,090 1,119 1,163 1,194 Amortization 116 119 86 119 116 119 -------------------------- -------------------------- -------------------------- Operating profit $ 9,574 $ 9,821 $ 9,269 $ 9,788 $ 9,574 $ 9,977 AS-REPORTED SAME STATION PRO FORMA (1) TELEVISION SEGMENT THREE MONTHS ENDED THREE MONTHS ENDED THREE MONTHS ENDED (In thousands of dollars) SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, 2003 2002 2003 2002 2003 2002 -------------------------- -------------------------- -------------------------- Net operating revenue $ 3,063 $ 3,140 $ 3,063 $ 3,140 $ 3,063 $ 3,140 Station operating expense 2,321 2,284 2,233 2,284 2,321 2,284 -------------------------- -------------------------- -------------------------- Station operating income 742 856 830 856 742 856 Depreciation 349 354 349 354 349 354 Amortization 4 6 4 6 4 6 -------------------------- -------------------------- -------------------------- Operating profit $ 389 $ 496 $ 477 $ 496 $ 389 $ 496
(1) Pro Forma results assume all acquisitions occurred as of January 1, 2002. SAGA COMMUNICATIONS, INC. SELECTED SUPPLEMENTAL FINANCIAL DATA FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002 (AMOUNTS IN 000'S EXCEPT PER SHARE DATA) (UNAUDITED)
PRO FORMA (1) PRO FORMA (1) PRO FORMA (1) PRO FORMA (1) THREE MONTHS CONSOLIDATED THREE MONTHS ENDED THREE MONTHS ENDED THREE MONTHS ENDED ENDED (In thousands of dollars) MARCH 31, JUNE 30, SEPTEMBER 30, DECEMBER 31, 2003 2002 2003 2002 2003 2002 2002 ------------------------- ------------------------- ------------------------- ------------ Net operating revenue $ 26,141 $ 25,382 $ 31,790 $ 31,096 $ 30,433 $ 30,790 $ 31,756 Station operating expense 18,813 17,741 20,497 19,971 18,838 18,644 20,389 ------------------------- ------------------------- ------------------------- ------------ Station operating income 7,328 7,641 11,293 11,125 11,595 12,146 11,367 Corporate general and administrative 1,245 1,317 1,896 1,615 1,794 1,584 1,702 Depreciation 1,719 1,524 1,671 1,594 1,562 1,598 1,518 Amortization 90 125 120 125 120 125 124 ------------------------- ------------------------- ------------------------- ------------ Operating profit 4,274 4,675 7,606 7,791 8,119 8,839 8,023 Interest expense 1,535 1,365 1,157 1,439 1,081 1,416 1,459 Other (income) expense (8) (7) (357) 10 1,215 (150) 306 Income tax provision 1,098 1,393 2,577 2,665 2,356 3,181 2,147 ------------------------- ------------------------- ------------------------- ------------ Net income $ 1,649 $ 1,924 $ 4,229 $ 3,677 $ 3,467 $ 4,392 $ 4,111 ========================= ========================= ========================= ============ Earnings per share: Basic $0.08 $0.09 $0.20 $0.18 $0.17 $0.21 $0.20 ========================= ========================= ========================= ============ Diluted $0.08 $0.09 $0.20 $0.17 $0.16 $0.21 $0.19 ========================= ========================= ========================= ============ PRO FORMA (1) PRO FORMA (1) PRO FORMA (1) PRO FORMA (1) THREE MONTHS RADIO SEGMENT THREE MONTHS ENDED THREE MONTHS ENDED THREE MONTHS ENDED ENDED (In thousands of dollars) MARCH 31, JUNE 30, SEPTEMBER 30, DECEMBER 31, 2003 2002 2003 2002 2003 2002 2002 ------------------------- ------------------------- ------------------------- ------------ Net operating revenue $ 23,525 $ 22,627 $ 28,675 $ 28,091 $ 27,370 $ 27,650 $ 28,246 Station operating expense 16,529 15,585 18,077 17,561 16,517 16,360 18,023 ------------------------- ------------------------- ------------------------- ------------ Station operating income 6,996 7,042 10,598 10,530 10,853 11,290 10,223 Depreciation 1,281 1,121 1,234 1,190 1,163 1,194 1,099 Amortization 86 119 117 119 116 119 118 ------------------------- ------------------------- ------------------------- ------------ Operating profit $ 5,629 $ 5,802 $ 9,247 $ 9,221 $ 9,574 $ 9,977 $ 9,006 PRO FORMA (1) PRO FORMA (1) PRO FORMA (1) PRO FORMA (1) THREE MONTHS TELEVISION SEGMENT THREE MONTHS ENDED THREE MONTHS ENDED THREE MONTHS ENDED ENDED (In thousands of dollars) MARCH 31, JUNE 30, SEPTEMBER 30, DECEMBER 31, 2003 2002 2003 2002 2003 2002 2002 ------------------------- ------------------------- ------------------------- ------------ Net operating revenue $ 2,616 $ 2,755 $ 3,115 $ 3,005 $ 3,063 $ 3,140 $ 3,510 Station operating expense 2,284 2,156 2,420 2,410 2,321 2,284 2,366 ------------------------- ------------------------- ------------------------- ------------ Station operating income 332 599 695 595 742 856 1,144 Depreciation 388 354 388 354 349 354 370 Amortization 4 6 3 6 4 6 6 ------------------------- ------------------------- ------------------------- ------------ Operating profit (loss) ($ 60) $ 239 $ 304 $ 235 $ 389 $ 496 $ 768
(1) Pro Forma results assume all acquisitions occurred as of January 1, 2002. -----END PRIVACY-ENHANCED MESSAGE-----