EX-99.1 3 k83415exv99w1.txt PRESS RELEASE DATED MARCH 3, 2004 EXHIBIT 99.1 Saga Communications, Inc. Reports 4th Quarter and Year End 2003 Results CONTACT: Samuel D. Bush 313/886-7070 Grosse Pointe Farms, MI - March 3, 2004 - Saga Communications, Inc. (NYSE-SGA) today reported net income of $4.5 million ($.21 per fully diluted share) for the quarter ended December 31, 2003 compared to $4.1 million ($.19 per fully diluted share) for 2002. For the quarter ended December 31, 2003, net operating revenue increased 5.2% over the comparable period in 2002 to approximately $32.9 million. Operating income increased 7.3% to approximately $8.6 million. Station operating income (net operating revenue less station operating expense) increased 4.2% to approximately $11.8 million for the quarter. On a same station basis for the quarter, net operating revenue increased 0.3% to approximately $30.5 million, operating income increased 5.3% to $8.3 million and station operating income (net operating revenue less station operating expense) increased 2.2% to approximately $11.4 million. For the year ended December 31, 2003, net income for the twelve month period decreased 0.5% to approximately $13.9 million ($.65 per fully diluted share) compared to $14.0 million ($.66 per fully diluted share). Net operating revenue increased 5.7% over the comparable period in 2002 to approximately $121.3 million. Operating income decreased 1% to approximately $28.6 million. Station operating income increased 1.4% to approximately $42.0 million. On a same station basis for the year, net operating revenue was approximately flat with 2002 at $111.2 million, operating income decreased 1.7% to $27.7 million and station operating income (net operating revenue less station operating expense) was approximately flat at $40.5 million. Net income for the year 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. Capital expenditures in the fourth quarter of 2003 were approximately $1.7 million with approximately $0.6 million being spent as a result of acquisitions. For the year end 2003 total capital expenditures were approximately $8.1 million with approximately $3.3 million being spent as a result of acquisitions. 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 and dispositions occurred as of January 1, 2002. Additionally, the Company is releasing its financial expectations for the first quarter of 2004. Saga expects net revenue and station operating income on a proforma basis to increase 2 - 4% and 3 - 5%, respectively, for the first quarter of 2004. The guidance being provided is based on the economic and market conditions as of March 3, 2004. The Company can give no assurances as to whether these conditions will continue, or if they change, how such changes may affect the Company's current expectations. While Saga may from time to time issue updated guidance, it assumes no obligation to do so. Saga Communications utilizes certain financial measures that are not calculated in accordance with generally accepted accounting principles (GAAP) to access its financial performance. Such non-GAAP measures include station operating income, same station financial information, proforma station operating income and free cash flow. These non-GAAP measures are generally recognized by the broadcasting industry as measures of performance and are used by Saga to assess its financial performance including but not limited to evaluating individual station and market-level performance, evaluating overall operations and as a primary measure for incentive based compensation of executives and other members of management. Saga's management believes these non-GAAP measures are used by analysts who report on the industry and by investors to provide meaningful comparisons between broadcasting groups, as well as an indicator of their market value. These measures are not measures of liquidity or of performance in accordance with GAAP, and should be viewed as a supplement to and not as a substitute for the results of operations presented on a GAAP basis including net operating revenue, operating income, and net income. Reconciliations for all of the non-GAAP financial measures to the most directly comparable GAAP measure are attached in the Selected Financial Data Non-GAAP Disclosures tables. 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 24 markets, including 49 FM and 27 AM radio stations, 3 state radio networks, 2 farm radio networks, 5 television stations and 3 low power television stations. Additionally, Saga has entered into an agreement to acquire 3 FM radio stations serving the Springfield/Northampton, MA and Brattleboro, VT radio markets and an AM and FM serving the Asheville, NC radio market. For additional information contact us at 313/886-7070 or visit our website at www.sagacommunications.com. Saga's fourth quarter and year end 2003 results conference call will be on Wednesday, March 3 at 9:00AM. The dial in number for domestic calls is 800/450-0785. For international callers the number is 612/332-0923. The call can be replayed for 7 days by calling domestically 800/475-6701 or internationally 320/365-3844 and referring to access code 720054. Thereafter, a transcript of the call will be available on our website. 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 TWELVE MONTH PERIODS ENDED DECEMBER 31, 2003 AND 2002 (AMOUNTS IN 000'S EXCEPT PER SHARE DATA) (UNAUDITED)
THREE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, 2003 2002 2003 2002 ---- ---- ---- ---- OPERATING RESULTS Net operating revenue $ 32,933 $ 31,308 $ 121,297 $ 114,782 Station operating expense (excluding depreciation, amortization, corporate general and administrative) 21,132 19,985 79,280 73,350 Corporate general and administrative 1,515 1,677 6,450 6,022 Depreciation 1,592 1,536 6,544 6,034 Amortization 128 124 458 499 --------- --------- --------- --------- Operating income 8,566 7,986 28,565 28,877 Interest expense 1,006 1,435 4,779 5,487 Other expense, net 281 306 1,131 159 --------- --------- --------- --------- Income before income tax 7,279 6,245 22,655 23,231 Income tax expense 2,740 2,141 8,771 9,276 --------- --------- --------- --------- Net income $ 4,539 $ 4,104 $ 13,884 $ 13,955 ========= ========= ========= ========= Earnings per share: Basic $ .22 $ .20 $ .67 $ .68 ========= ========= ========= ========= Diluted $ .21 $ .19 $ .65 $ .66 ========= ========= ========= ========= Weighted average common shares 20,839 20,753 20,817 20,631 Weighted average common shares and common equivalents 21,293 21,270 21,301 21,209 FREE CASH FLOW Net income $ 4,539 $ 4,104 $ 13,884 $ 13,955 Plus: Depreciation and amortization 1,720 1,660 7,002 6,533 Deferred tax expense 1,466 1,415 3,594 3,770 Less: Capital expenditures (1,708) (1,704) (8,118) (7,559) --------- --------- --------- --------- Free cash flow $ 6,017 $ 5,475 $ 16,362 $ 16,699 ========= ========= ========= ========= BALANCE SHEET DATA Working capital $ 25,353 $ 5,517 Net fixed assets 62,369 60,161 Net intangible and other assets 161,112 134,713 Total assets 262,343 226,322 Long term debt (including current portion of $45 for 2003, and $13,308 for 2002) 121,205 105,228 Stockholders' equity 107,244 93,059
SAGA COMMUNICATIONS, INC. SELECTED SUPPLEMENTAL FINANCIAL DATA FOR THE THREE MONTHS ENDED DECEMBER 31, 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 DECEMBER 31, DECEMBER 31, DECEMBER 31, 2003 2002 2003 2002 2003 2002 ---- ---- ---- ---- ---- ---- Net operating revenue $32,933 $31,308 $30,496 $30,415 $32,933 $32,605 Station operating expense 21,132 19,985 19,073 19,233 21,132 21,099 ------- ------- ------- ------- ------- ------- Station operating income (2) 11,801 11,323 11,423 11,182 11,801 11,506 Corporate general and administrative 1,515 1,677 1,515 1,677 1,515 1,702 Depreciation 1,592 1,536 1,532 1,508 1,592 1,578 Amortization 128 124 90 124 128 154 ------- ------- ------- ------- ------- ------- Operating income 8,566 7,986 $ 8,286 $ 7,873 8,566 8,072 Interest expense 1,006 1,435 1,006 1,621 Other expense, net 281 306 281 306 Income tax expense 2,740 2,141 2,740 2,108 ------- ------- ------- ------- Net income $ 4,539 $ 4,104 $ 4,539 $ 4,037 ======= ======= ======= ======= Earnings per share: Basic $ 0.22 $ 0.20 $ 0.22 $ 0.20 ======= ======= ======= ======= Diluted $ 0.21 $ 0.19 $ 0.21 $ 0.19 ======= ======= ======= =======
AS-REPORTED SAME STATION PRO FORMA (1) RADIO SEGMENT THREE MONTHS ENDED THREE MONTHS ENDED THREE MONTHS ENDED DECEMBER 31, DECEMBER 31, DECEMBER 31, 2003 2002 2003 2002 2003 2002 ---- ---- ---- ---- ---- ---- Net operating revenue $29,495 $27,798 $27,158 $26,905 $29,495 $28,996 Station operating expense 18,562 17,619 16,711 16,867 18,562 18,439 ------- ------- ------- ------- ------- ------- Station operating income (2) 10,933 10,179 10,447 10,038 10,933 10,557 Depreciation 1,107 1,114 1,047 1,086 1,107 1,112 Amortization 125 118 87 118 125 148 ------- ------- ------- ------- ------- ------- Operating income $ 9,701 $ 8,947 $ 9,313 $ 8,834 $ 9,701 $ 9,297
AS-REPORTED SAME STATION PRO FORMA (1) TELEVISION SEGMENT THREE MONTHS ENDED THREE MONTHS ENDED THREE MONTHS ENDED DECEMBER 31, DECEMBER 31, DECEMBER 31, 2003 2002 2003 2002 2003 2002 ---- ---- ---- ---- ---- ---- Net operating revenue $3,438 $3,510 $3,338 $3,510 $3,438 $3,609 Station operating expense 2,570 2,366 2,362 2,366 2,570 2,660 ------ ------ ------ ------ ------ ------ Station operating income (2) 868 1,144 976 1,144 868 949 Depreciation 435 370 435 370 435 414 Amortization 3 6 3 6 3 6 ------ ------ ------ ------ ------ ------ Operating income $ 430 $ 768 $ 538 $ 768 $ 430 $ 529
(1) Pro Forma results assume all acquisitions and dispositions in 2002 and 2003 occurred as of January 1, 2002. (2) Excludes depreciation, amortization, corporate general and administrative. SAGA COMMUNICATIONS, INC. SELECTED SUPPLEMENTAL FINANCIAL DATA FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2003 AND 2002 (AMOUNTS IN 000'S EXCEPT PER SHARE DATA) (UNAUDITED)
AS-REPORTED SAME STATION PRO FORMA (1) CONSOLIDATED TWELVE MONTHS ENDED TWELVE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, DECEMBER 31, 2003 2002 2003 2002 2003 2002 ---- ---- ---- ---- ---- ---- Net operating revenue $121,297 $114,782 $111,203 $111,181 $123,111 $121,896 Station operating expense 79,280 73,350 70,661 70,628 80,649 79,045 -------- -------- -------- -------- -------- -------- Station operating income (2) 42,017 41,432 40,542 40,553 42,462 42,851 Corporate general and administrative 6,450 6,022 6,450 6,022 6,450 6,218 Depreciation 6,544 6,034 6,081 5,913 6,632 6,382 Amortization 458 499 359 499 510 581 -------- -------- -------- -------- -------- -------- Operating income 28,565 28,877 $ 27,652 $ 28,119 28,870 29,670 Interest expense 4,779 5,487 4,996 6,250 Other expense, net 1,131 159 1,131 159 Income tax expense 8,771 9,276 8,809 9,304 -------- -------- -------- -------- Net income $ 13,884 $ 13,955 $ 13,934 $ 13,957 ======== ======== ======== ======== Earnings per share: Basic $ 0.67 $ 0.68 $ 0.67 $ 0.68 ======== ======== ======== ======== Diluted $ 0.65 $ 0.66 $ 0.65 $ 0.66 ======== ======== ======== ========
AS-REPORTED SAME STATION PRO FORMA (1) RADIO SEGMENT TWELVE MONTHS ENDED TWELVE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, DECEMBER 31, 2003 2002 2003 2002 2003 2002 ---- ---- ---- ---- ---- ---- Net operating revenue $109,065 $102,372 $ 99,070 $ 98,771 $110,879 $109,387 Station operating expense 69,685 64,134 61,361 61,412 71,054 69,535 -------- -------- -------- -------- -------- -------- Station operating income (2) 39,380 38,238 37,709 37,359 39,825 39,852 Depreciation 4,785 4,401 4,366 4,280 4,873 4,705 Amortization 444 475 345 475 496 557 -------- -------- -------- -------- -------- -------- Operating income $ 34,151 $ 33,362 $ 32,998 $ 32,604 $ 34,456 $ 34,590
AS-REPORTED SAME STATION PRO FORMA (1) TELEVISION SEGMENT TWELVE MONTHS ENDED TWELVE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, DECEMBER 31, 2003 2002 2003 2002 2003 2002 ---- ---- ---- ---- ---- ---- Net operating revenue $12,232 $12,410 $12,133 $12,410 $12,232 $12,509 Station operating expense 9,595 9,216 9,300 9,216 9,595 9,510 ------- ------- ------- ------- ------- ------- Station operating income (2) 2,637 3,194 2,833 3,194 2,637 2,999 Depreciation 1,560 1,432 1,516 1,432 1,560 1,476 Amortization 14 24 14 24 14 24 ------- ------- ------- ------- ------- ------- Operating income $ 1,063 $ 1,738 $ 1,303 $ 1,738 $ 1,063 $ 1,499
(1) Pro Forma results assume all acquisitions and dispositions in 2002 and 2003 occurred as of January 1, 2002. (2) Excludes depreciation, amortization, corporate general and administrative. SAGA COMMUNICATIONS, INC. SELECTED SUPPLEMENTAL FINANCIAL DATA FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2003 AND 2002 (AMOUNTS IN 000'S EXCEPT PER SHARE DATA) (UNAUDITED)
PRO FORMA (1) PRO FORMA (1) PRO FORMA (1) PRO FORMA (1) CONSOLIDATED THREE MONTHS ENDED THREE MONTHS ENDED THREE MONTHS ENDED THREE MONTHS ENDED MARCH 31, JUNE 30, SEPTEMBER 30, DECEMBER 31, 2003 2002 2003 2002 2003 2002 2003 2002 ---- ---- ---- ---- ---- ---- ---- ---- Net operating revenue $ 26,743 $ 25,885 $ 32,418 $ 31,806 $ 31,017 $ 31,600 $ 32,933 $ 32,605 Station operating expense 19,308 18,210 20,925 20,502 19,284 19,234 21,132 21,099 -------- -------- -------- -------- -------- -------- -------- -------- Station operating income (2) 7,435 7,675 11,493 11,304 11,733 12,366 11,801 11,506 Corporate general and administrative 1,245 1,317 1,896 1,615 1,794 1,584 1,515 1,702 Depreciation 1,748 1,554 1,703 1,622 1,589 1,628 1,592 1,578 Amortization 107 142 135 143 140 142 128 154 -------- -------- -------- -------- -------- -------- -------- -------- Operating income 4,335 4,662 7,759 7,924 8,210 9,012 8,566 8,072 Interest expense 1,607 1,501 1,229 1,575 1,154 1,553 1,006 1,621 Other (income) expense, net (8) (7) (357) 10 1,215 (150) 281 306 Income tax expense 1,093 1,331 2,612 2,667 2,364 3,198 2,740 2,108 -------- -------- -------- -------- -------- -------- -------- -------- Net income $ 1,643 $ 1,837 $ 4,275 $ 3,672 $ 3,477 $ 4,411 $ 4,539 $ 4,037 ======== ======== ======== ======== ======== ======== ======== ======== Earnings per share: Basic $ 0.08 $ 0.09 $ 0.21 $ 0.18 $ 0.17 $ 0.21 $ 0.22 $ 0.19 ======== ======== ======== ======== ======== ======== ======== ======== Diluted $ 0.08 $ 0.09 $ 0.20 $ 0.17 $ 0.16 $ 0.21 $ 0.21 $ 0.19 ======== ======== ======== ======== ======== ======== ======== ========
PRO FORMA (1) PRO FORMA (1) PRO FORMA (1) PRO FORMA (1) RADIO SEGMENT THREE MONTHS ENDED THREE MONTHS ENDED THREE MONTHS ENDED THREE MONTHS ENDED MARCH 31, JUNE 30, SEPTEMBER 30, DECEMBER 31, 2003 2002 2003 2002 2003 2002 2003 2002 ---- ---- ---- ---- ---- ---- ---- ---- Net operating revenue $24,127 $23,130 $29,303 $28,801 $27,954 $28,460 $29,495 $28,996 Station operating expense 17,024 16,054 18,505 18,092 16,963 16,950 18,562 18,439 ------- ------- ------- ------- ------- ------- ------- ------- Station operating income (2) 7,103 7,076 10,798 10,709 10,991 11,510 10,933 10,557 Depreciation 1,310 1,151 1,266 1,218 1,190 1,224 1,107 1,112 Amortization 103 136 132 137 136 136 125 148 ------- ------- ------- ------- ------- ------- ------- ------- Operating income $ 5,690 $ 5,789 $ 9,400 $ 9,354 $ 9,665 $10,150 $ 9,701 $ 9,297
PRO FORMA (1) PRO FORMA (1) PRO FORMA (1) PRO FORMA (1) TELEVISION SEGMENT THREE MONTHS ENDED THREE MONTHS ENDED THREE MONTHS ENDED THREE MONTHS ENDED MARCH 31, JUNE 30, SEPTEMBER 30, DECEMBER 31, 2003 2002 2003 2002 2003 2002 2003 2002 ---- ---- ---- ---- ---- ---- ---- ---- Net operating revenue $ 2,616 $ 2,755 $ 3,115 $ 3,005 $ 3,063 $ 3,140 $ 3,438 $ 3,609 Station operating expense 2,284 2,156 2,420 2,410 2,321 2,284 2,570 2,660 ------- ------- ------- ------- ------- ------- ------- ------- Station operating income (2) 332 599 695 595 742 856 868 949 Depreciation 388 354 388 354 349 354 435 414 Amortization 4 6 3 6 4 6 3 6 ------- ------- ------- ------- ------- ------- ------- ------- Operating income (loss) ($60) $ 239 $ 304 $ 235 $ 389 $ 496 $ 430 $ 529
(1) Pro Forma results assume all acquisitions and dispositions in 2002 and 2003 occurred as of January 1, 2002. (2) Excludes depreciation, amortization, corporate general and administrative. SAGA COMMUNICATIONS, INC. SELECTED FINANCIAL DATA NON-GAAP DISCLOSURES FOR THE THREE MONTHS ENDED DECEMBER 31, 2003 AND 2002 (AMOUNTS IN 000'S EXCEPT PER SHARE DATA) (UNAUDITED) RECONCILIATION OF STATION OPERATING INCOME TO GAAP OPERATING INCOME
AS-REPORTED SAME STATION PRO FORMA (1) CONSOLIDATED THREE MONTHS ENDED THREE MONTHS ENDED THREE MONTHS ENDED DECEMBER 31, DECEMBER 31, DECEMBER 31, 2003 2002 2003 2002 2003 2002 ---- ---- ---- ---- ---- ---- Operating income as reported $ 8,566 $ 7,986 $ 8,286 $ 7,873 $ 8,566 $ 8,072 Corporate general and administrative 1,515 1,677 1,515 1,677 1,515 1,702 Depreciation 1,592 1,536 1,532 1,508 1,592 1,578 Amortization 128 124 90 124 128 154 ------- ------- ------- ------- ------- ------- Station operating income $11,801 $11,323 $11,423 $11,182 $11,801 $11,506 ======= ======= ======= ======= ======= =======
AS-REPORTED SAME STATION PRO FORMA (1) RADIO SEGMENT THREE MONTHS ENDED THREE MONTHS ENDED THREE MONTHS ENDED DECEMBER 31, DECEMBER 31, DECEMBER 31, 2003 2002 2003 2002 2003 2002 ---- ---- ---- ---- ---- ---- Operating income as reported $ 9,701 $ 8,947 $ 9,313 $ 8,834 $ 9,701 $ 9,297 Corporate general and administrative -- -- -- -- -- -- Depreciation 1,107 1,114 1,047 1,086 1,107 1,112 Amortization 125 118 87 118 125 148 ------- ------- ------- ------- ------- ------- Station operating income $10,933 $10,179 $10,447 $10,038 $10,933 $10,557 ======= ======= ======= ======= ======= =======
AS-REPORTED SAME STATION PRO FORMA (1) TELEVISION SEGMENT THREE MONTHS ENDED THREE MONTHS ENDED THREE MONTHS ENDED DECEMBER 31, DECEMBER 31, DECEMBER 31, 2003 2002 2003 2002 2003 2002 ---- ---- ---- ---- ---- ---- Operating income as reported $ 430 $ 768 $ 538 $ 768 $ 430 $ 529 Corporate general and administrative -- -- -- -- -- -- Depreciation 435 370 435 370 435 414 Amortization 3 6 3 6 3 6 ------ ------ ------ ------ ------ ------ Station operating income $ 868 $1,144 $ 976 $1,144 $ 868 $ 949 ====== ====== ====== ====== ====== ======
(1) Pro Forma results assume all acquisitions and dispositions in 2002 and 2003 occurred as of January 1, 2002. SAGA COMMUNICATIONS, INC. SELECTED FINANCIAL DATA NON-GAAP DISCLOSURES FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2003 AND 2002 (AMOUNTS IN 000'S EXCEPT PER SHARE DATA) (UNAUDITED) RECONCILIATION OF STATION OPERATING INCOME TO GAAP OPERATING INCOME
AS-REPORTED SAME STATION PRO FORMA (1) CONSOLIDATED TWELVE MONTHS ENDED TWELVE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, DECEMBER 31, 2003 2002 2003 2002 2003 2002 ---- ---- ---- ---- ---- ---- Operating income as reported $28,565 $28,877 $27,652 $28,119 $28,870 $29,670 Corporate general and administrative 6,450 6,022 6,450 6,022 6,450 6,218 Depreciation 6,544 6,034 6,081 5,913 6,632 6,382 Amortization 458 499 359 499 510 581 ------- ------- ------- ------- ------- ------- Station operating income $42,017 $41,432 $40,542 $40,553 $42,462 $42,851 ======= ======= ======= ======= ======= =======
AS-REPORTED SAME STATION PRO FORMA (1) RADIO SEGMENT TWELVE MONTHS ENDED TWELVE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, DECEMBER 31, 2003 2002 2003 2002 2003 2002 ---- ---- ---- ---- ---- ---- Operating income as reported $34,151 $33,362 $32,998 $32,604 $34,456 $34,590 Corporate general and administrative -- -- -- -- -- -- Depreciation 4,785 4,401 4,366 4,280 4,873 4,705 Amortization 444 475 345 475 496 557 ------- ------- ------- ------- ------- ------- Station operating income $39,380 $38,238 $37,709 $37,359 $39,825 $39,852 ======= ======= ======= ======= ======= =======
AS-REPORTED SAME STATION PRO FORMA (1) TELEVISION SEGMENT TWELVE MONTHS ENDED TWELVE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, DECEMBER 31, 2003 2002 2003 2002 2003 2002 ---- ---- ---- ---- ---- ---- Operating income as reported $1,063 $1,738 $1,303 $1,738 $1,063 $1,499 Corporate general and administrative -- -- -- -- -- -- Depreciation 1,560 1,432 1,516 1,432 1,560 1,476 Amortization 14 24 14 24 14 24 ------ ------ ------ ------ ------ ------ Station operating income $2,637 $3,194 $2,833 $3,194 $2,637 $2,999 ====== ====== ====== ====== ====== ======
(1) Pro Forma results assume all acquisitions and dispositions in 2002 and 2003 occurred as of January 1, 2002. SAGA COMMUNICATIONS, INC. SELECTED FINANCIAL DATA NON-GAAP DISCLOSURES FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2003 AND 2002 (AMOUNTS IN 000'S EXCEPT PER SHARE DATA) (UNAUDITED) RECONCILIATION OF PROFORMA STATION OPERATING INCOME TO GAAP PROFORMA OPERATING INCOME
PRO FORMA (1) PRO FORMA (1) PRO FORMA (1) PRO FORMA (1) CONSOLIDATED THREE MONTHS ENDED THREE MONTHS ENDED THREE MONTHS ENDED THREE MONTHS ENDED MARCH 31, JUNE 30, SEPTEMBER 30, DECEMBER 31, ----------------- ----------------- ----------------- ----------------- 2003 2002 2003 2002 2003 2002 2003 2002 ------- ------- ------- ------- ------- ------- ------- ------- Proforma operating income as reported $ 4,335 $ 4,662 $ 7,759 $ 7,924 $ 8,210 $ 9,012 $ 8,566 $ 8,072 Corporate general and administrative 1,245 1,317 1,896 1,615 1,794 1,584 1,515 1,702 Depreciation 1,748 1,554 1,703 1,622 1,589 1,628 1,592 1,578 Amortization 107 142 135 143 140 142 128 154 ------- ------- ------- ------- ------- ------- ------- ------- Proforma Station operating income $ 7,435 $ 7,675 $11,493 $11,304 $11,733 $12,366 $11,801 $11,506 ======= ======= ======= ======= ======= ======= ======= =======
PRO FORMA (1) PRO FORMA (1) PRO FORMA (1) PRO FORMA (1) RADIO SEGMENT THREE MONTHS ENDED THREE MONTHS ENDED THREE MONTHS ENDED THREE MONTHS ENDED MARCH 31, JUNE 30, SEPTEMBER 31, DECEMBER 31, ----------------- ----------------- ----------------- ----------------- 2003 2002 2003 2002 2003 2002 2003 2002 ------- ------- ------- ------- ------- ------- ------- ------- Proforma operating income as reported $ 5,690 $ 5,789 $ 9,400 $ 9,354 $ 9,665 $10,150 $ 9,701 $ 9,297 Corporate general and administrative -- -- -- -- -- -- -- -- Depreciation 1,310 1,151 1,266 1,218 1,190 1,224 1,107 1,112 Amortization 103 136 132 137 136 136 125 148 ------- ------- ------- ------- ------- ------- ------- ------- Proforma Station operating income $ 7,103 $ 7,076 $10,798 $10,709 $10,991 $11,510 $10,933 $10,557 ======= ======= ======= ======= ======= ======= ======= =======
PRO FORMA (1) PRO FORMA (1) PRO FORMA (1) PRO FORMA (1) TELEVISION SEGMENT THREE MONTHS ENDED THREE MONTHS ENDED THREE MONTHS ENDED THREE MONTHS ENDED MARCH 31, JUNE 30, SEPTEMBER 30, DECEMBER 31, ---------------- --------------- --------------- --------------- 2003 2002 2003 2002 2003 2002 2003 2002 ----- ----- ----- ----- ----- ----- ----- ----- Proforma operating income (loss) as reported ($ 60) $ 239 $ 304 $ 235 $ 389 $ 496 $ 430 $ 529 Corporate general and administrative -- -- -- -- -- -- -- -- Depreciation 388 354 388 354 349 354 435 414 Amortization 4 6 3 6 4 6 3 6 ----- ----- ----- ----- ----- ----- ----- ----- Proforma Station operating income $ 332 $ 599 $ 695 $ 595 $ 742 $ 856 $ 868 $ 949 ===== ===== ===== ===== ===== ===== ===== =====
(1) Pro Forma results assume all acquisitions and dispositions in 2002 and 2003 occurred as of January 1, 2002. SAGA COMMUNICATIONS, INC. SELECTED FINANCIAL DATA NON-GAAP DISCLOSURES FOR THE THREE MONTHS ENDED DECEMBER 31, 2003 AND 2002 (AMOUNTS IN 000'S EXCEPT PER SHARE DATA) (UNAUDITED) RECONCILIATION OF SAME STATION STATION OPERATING INCOME TO GAAP OPERATING INCOME
ADJUSTMENT ADJUSTMENT AS-REPORTED FOR ACQUISITIONS SAME STATION AS-REPORTED FOR ACQUISITIONS SAME STATION THREE MONTHS AND DISPOSITIONS THREE MONTHS THREE MONTHS AND DISPOSITIONS THREE MONTHS CONSOLIDATED ENDED NOT INCLUDED IN ENDED ENDED NOT INCLUDED IN ENDED DECEMBER 31, ENTIRE COMPARABLE DECEMBER 31, DECEMBER 31, ENTIRE COMPARABLE DECEMBER 31, 2003 PERIOD 2003 2002 PERIOD 2002 ------- ------- ------- ------- ------- ------- Net operating revenue $32,933 ($2,437) $30,496 $31,308 ($ 893) $30,415 Station operating expense 21,132 (2,059) 19,073 19,985 (752) 19,233 ------- ------- ------- ------- ------- ------- Station operating income (2) 11,801 (378) 11,423 11,323 (141) 11,182 Corporate general and administrative 1,515 -- 1,515 1,677 -- 1,677 Depreciation 1,592 (60) 1,532 1,536 (28) 1,508 Amortization 128 (38) 90 124 -- 124 ------- ------- ------- ------- ------- ------- Operating income (loss) $ 8,566 ($ 280) $ 8,286 $ 7,986 ($ 113) $ 7,873 ======= ======= ======= ======= ======= =======
ADJUSTMENT ADJUSTMENT AS-REPORTED FOR ACQUISITIONS SAME STATION AS-REPORTED FOR ACQUISITIONS SAME STATION THREE MONTHS AND DISPOSITIONS THREE MONTHS THREE MONTHS AND DISPOSITIONS THREE MONTHS RADIO SEGMENT ENDED NOT INCLUDED IN ENDED ENDED NOT INCLUDED IN ENDED DECEMBER 31, ENTIRE COMPARABLE DECEMBER 31, DECEMBER 31, ENTIRE COMPARABLE DECEMBER 31, 2003 PERIOD 2003 2002 PERIOD 2002 ------- ------- ------- ------- ------- ------- Net operating revenue $29,495 ($2,337) $27,158 $27,798 ($ 893) $26,905 Station operating expense 18,562 (1,851) 16,711 17,619 (752) 16,867 ------- ------- ------- ------- ------- ------- Station operating income (2) 10,933 (486) 10,447 10,179 (141) 10,038 Corporate general and administrative -- -- -- -- -- -- Depreciation 1,107 (60) 1,047 1,114 (28) 1,086 Amortization 125 (38) 87 118 -- 118 ------- ------- ------- ------- ------- ------- Operating income (loss) $ 9,701 ($ 388) $ 9,313 $ 8,947 ($ 113) $ 8,834 ======= ======= ======= ======= ======= =======
ADJUSTMENT ADJUSTMENT AS-REPORTED FOR ACQUISITIONS SAME STATION AS-REPORTED FOR ACQUISITIONS SAME STATION THREE MONTHS AND DISPOSITIONS THREE MONTHS THREE MONTHS AND DISPOSITIONS THREE MONTHS TELEVISION SEGMENT ENDED NOT INCLUDED IN ENDED ENDED NOT INCLUDED IN ENDED DECEMBER 31, ENTIRE COMPARABLE DECEMBER 31, DECEMBER 31, ENTIRE COMPARABLE DECEMBER 31, 2003 PERIOD 2003 2002 PERIOD 2002 ------ ------ ------ ------ ------ ------ Net operating revenue $3,438 ($ 100) $3,338 $3,510 $ 0 $3,510 Station operating expense 2,570 (208) 2,362 2,366 0 2,366 ------ ------ ------ ------ ------ ------ Station operating income (2) 868 108 976 1,144 -- 1,144 Corporate general and administrative -- -- -- -- -- -- Depreciation 435 -- 435 370 -- 370 Amortization 3 -- 3 6 -- 6 ------ ------ ------ ------ ------ ------ Operating income $ 430 $ 108 $ 538 $ 768 $ 0 $ 768 ====== ====== ====== ====== ====== ======
(2) Excludes depreciation, amortization, corporate general and administrative. SAGA COMMUNICATIONS, INC. SELECTED FINANCIAL DATA NON-GAAP DISCLOSURES FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2003 AND 2002 (AMOUNTS IN 000'S EXCEPT PER SHARE DATA) (UNAUDITED) RECONCILIATION OF SAME STATION STATION OPERATING INCOME TO GAAP OPERATING INCOME
ADJUSTMENT ADJUSTMENT AS-REPORTED FOR ACQUISITIONS SAME STATION AS-REPORTED FOR ACQUISITIONS SAME STATION TWELVE MONTHS AND DISPOSITIONS TWELVE MONTHS TWELVE MONTHS AND DISPOSITIONS TWELVE MONTHS CONSOLIDATED ENDED NOT INCLUDED IN ENDED ENDED NOT INCLUDED IN ENDED DECEMBER 31, ENTIRE COMPARABLE DECEMBER 31, DECEMBER 31, ENTIRE COMPARABLE DECEMBER 31, 2003 PERIOD 2003 2002 PERIOD 2002 -------- -------- -------- -------- -------- -------- Net operating revenue $121,297 ($10,094) $111,203 $114,782 ($ 3,601) $111,181 Station operating expense 79,280 (8,619) 70,661 73,350 (2,722) 70,628 -------- -------- -------- -------- -------- -------- Station operating income (2) 42,017 (1,475) 40,542 41,432 (879) 40,553 Corporate general and administrative 6,450 -- 6,450 6,022 -- 6,022 Depreciation 6,544 (463) 6,081 6,034 (121) 5,913 Amortization 458 (99) 359 499 -- 499 -------- -------- -------- -------- -------- -------- Operating income $ 28,565 ($ 913) $ 27,652 $ 28,877 ($ 758) $ 28,119 ======== ======== ======== ======== ======== ========
ADJUSTMENT ADJUSTMENT AS-REPORTED FOR ACQUISITIONS SAME STATION AS-REPORTED FOR ACQUISITIONS SAME STATION TWELVE MONTHS AND DISPOSITIONS TWELVE MONTHS TWELVE MONTHS AND DISPOSITIONS TWELVE MONTHS RADIO SEGMENT ENDED NOT INCLUDED IN ENDED ENDED NOT INCLUDED IN ENDED DECEMBER 31, ENTIRE COMPARABLE DECEMBER 31, DECEMBER 31, ENTIRE COMPARABLE DECEMBER 31, 2003 PERIOD 2003 2002 PERIOD 2002 -------- -------- -------- -------- -------- -------- Net operating revenue $109,065 ($ 9,995) $ 99,070 $102,372 ($ 3,601) $ 98,771 Station operating expense 69,685 (8,324) 61,361 64,134 (2,722) 61,412 -------- -------- -------- -------- -------- -------- Station operating income (2) 39,380 (1,671) 37,709 38,238 (879) 37,359 Corporate general and administrative -- 0 -- -- -- -- Depreciation 4,785 (419) 4,366 4,401 (121) 4,280 Amortization 444 (99) 345 475 -- 475 -------- -------- -------- -------- -------- -------- Operating income $ 34,151 ($ 1,153) $ 32,998 $ 33,362 ($ 758) $ 32,604 ======== ======== ======== ======== ======== ========
ADJUSTMENT ADJUSTMENT AS-REPORTED FOR ACQUISITIONS SAME STATION AS-REPORTED FOR ACQUISITIONS SAME STATION TWELVE MONTHS AND DISPOSITIONS TWELVE MONTHS TWELVE MONTHS AND DISPOSITIONS TWELVE MONTHS TELEVISION SEGMENT ENDED NOT INCLUDED IN ENDED ENDED NOT INCLUDED IN ENDED DECEMBER 31, ENTIRE COMPARABLE DECEMBER 31, DECEMBER 31, ENTIRE COMPARABLE DECEMBER 31, 2003 PERIOD 2003 2002 PERIOD 2002 ------- ------- ------- ------- ------- ------- Net operating revenue $12,232 ($ 99) $12,133 $12,410 $ 0 $12,410 Station operating expense 9,595 (295) 9,300 9,216 0 9,216 ------- ------- ------- ------- ------- ------- Station operating income (2) 2,637 196 2,833 3,194 -- 3,194 Corporate general and administrative -- 0 -- -- -- -- Depreciation 1,560 (44) 1,516 1,432 0 1,432 Amortization 14 0 14 24 -- 24 ------- ------- ------- ------- ------- ------- Operating income $ 1,063 $ 240 $ 1,303 $ 1,738 $ 0 $ 1,738 ======= ======= ======= ======= ======= =======
(2) Excludes depreciation, amortization, corporate general and administrative.