EX-99.1 2 b51330scexv99w1.htm EX-99.1 PRESS RELEASE, DATED JULY 28, 2004 EX-99.1 PRESS RELEASE, DATED JULY 28, 2004
 

EXHIBIT 99.1

Saga Communications, Inc.
Reports 2nd Quarter 2004 Results

Contact:
Samuel D. Bush
313/886-7070

Grosse Pointe Farms, MI – July 28, 2004 – Saga Communications, Inc. (NYSE-SGA) today reported net income of $4.9 million ($.23 per fully diluted share) for the quarter ended June 30, 2004 compared to $4.2 million ($.20 per fully diluted share) for 2003. For the quarter ended June 30, 2004, net operating revenue increased 10.5% over the comparable period in 2003 to approximately $35.1 million. Operating income increased 19.8% to approximately $9.1 million. Station operating income (net operating revenue less station operating expense) increased 16.2% to approximately $13.1 million for the quarter. On a same station basis for the quarter, net operating revenue increased 5.0% to approximately $33.4 million, operating income increased 17.4% to $8.9 million and station operating income (net operating revenue less station operating expense) increased 13.2% to approximately $12.8 million.

For the six months ended June 30, 2004 net income was $7.4 million ($.35 per fully diluted share) compared to $5.9 million ($.28 per fully diluted share) for 2003. For the six months ended June 30, 2004, net operating revenue increased 11.0% over the comparable period in 2003 to approximately $64.3 million. Operating income increased 21.0% to approximately $14.4 million. Station operating income (net operating revenue less station operating expense) increased 16.9% to approximately $21.8 million for the period. On a same station basis for the period, net operating revenue increased 6.2% to approximately $61.5 million, operating income increased 18.3% to $14.1 million and station operating income (net operating revenue less station operating expense) increased 14.1% to approximately $21.3 million.

Capital expenditures in the second quarter of 2004 were approximately $1.9 million with approximately $0.6 million being spent as a result of acquisitions. For the six months ended June 30, 2004, capital expenditures were approximately $4.3 million with $1.5 million being spent as a result of acquisitions. For the year ending December 31, 2004, total capital expenditures are expected to approximate $8.5 — $9.0 million with approximately $4.0 – $4.5 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 2004 and 2003 acquisitions and dispositions occurred as of January 1, 2003.

 

 

Saga expects net revenue to be between $34.0 and $34.5 million and station operating expenses to be between $21.2 and $21.5 million on a pro forma basis for the third quarter of 2004. The guidance being provided is based on the economic and market conditions as of July 28, 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, pro forma 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 53 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 agreements to acquire an AM and FM serving the Asheville, NC radio market and 2 FMs and 2 AMs serving the Ithaca NY radio market. For additional information contact us at 313/886-7070 or visit our website at www.sagacommunications.com.

Saga’s first quarter results conference call will be on Wednesday, July 28 at 3:00PM EDT. The dial in number for domestic calls is 888/273-9890. For international callers the number is 612/332-0820. The call can be replayed for 7 days by calling domestically 800/475-6701 or internationally 320/365-3844 and referring to access code 737564. 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 Six Month Periods
Ended June 30, 2004 and 2003
(amounts in 000’s except per share data)

                                     
        Three Months Ended   Six Months Ended
        June 30,
   June 30,
        2004
   2003
   2004
   2003
Operating Results                                
Net revenue   $ 35,127     $ 31,790     $ 64,300     $ 57,931  
Station operating expense (excluding depreciation, amortization, corporate general and administrative)
     22,007       20,497       42,525       39,310  
 
        
 		      
 		      
 		      
 		  
Station operating income (*)     13,120       11,293       21,775       18,621  
Corporate general and administrative     2,229       1,896       3,912       3,141  
Depreciation     1,709       1,671       3,383       3,390  
Amortization     67       120       109       210  
 
        
 		      
 		      
 		      
 		  
Operating income     9,115       7,606       14,371       11,880  
Interest expense     1,085       1,157       2,180       2,692  
Other (income) expense     65       (357 )     73       (365 )
 
        
 		      
 		      
 		      
 		  
Income before income tax     7,965       6,806       12,118       9,553  
Income tax expense     3,104       2,577       4,726       3,675  
 
        
 		      
 		      
 		      
 		  
Net income   $ 4,861     $ 4,229     $ 7,392     $ 5,878  
 
        
 		      
 		      
 		      
 		  
Earnings per share:                                
 
   Basic   $ .23     $ .20     $ .36     $ .28  
 
        
 		      
 		      
 		      
 		  
 
   Diluted   $ .23     $ .20     $ .35     $ .28  
 
        
 		      
 		      
 		      
 		  
Weighted average common shares     20,816       20,815       20,813       20,810  
Weighted average common shares and common equivalents
     21,285       21,354       21,283       21,309  
Free Cash Flow                                
Net Income   $ 4,861     $ 4,229     $ 7,392     $ 5,878  
Plus:
   Depreciation and amortization     1,776       1,791       3,492       3,600  
 
   Deferred tax provision     1,274       896       1,939       1,335  
Less: Capital expenditures     (1,941 )     (1,682 )     (4,263 )     (4,203 )
 
        
 		      
 		      
 		      
 		  
Free cash flow   $ 5,970     $ 5,234     $ 8,560     $ 6,610  
 
        
 		      
 		      
 		      
 		  
Balance Sheet Data                                
Working capital                   $ 18,562     $ 19,455  
Net fixed assets                     63,718       60,709  
Net intangible and other assets                     174,421       145,896  
Total assets                     270,918       237,814  
Long term debt (including current portion of $0 and $98, respectively)
                    121,161       109,489  
Stockholders’ equity
                     113,522       99,482  

(*)   Excluding depreciation, amortization, and corporate general and administrative

 

Saga Communications, Inc.
Selected Supplemental Financial Data
For the Three Months Ended
June 30, 2004 and 2003
(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
    June 30,   June 30,   June 30,
    2004
   2003
   2004
   2003
   2004
   2003
Net operating revenue
   $ 35,127     $ 31,790     $ 33,375     $ 31,790     $ 35,127     $ 33,974  
Station operating expense
     22,007       20,497       20,580       20,489       22,007       21,932  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
Station operating income (2)
     13,120       11,293       12,795       11,301       13,120       12,042  
Corporate general and administrative
     2,229       1,896       2,229       1,896       2,229       1,896  
Depreciation
     1,709       1,671       1,588       1,671       1,709       1,722  
Amortization
     67       120       43       120       67       136  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
Operating income
     9,115       7,606     $ 8,935     $ 7,614       9,115       8,288  
Interest expense
     1,085       1,157                       1,085       1,229  
Other (income) expense, net
     65       (357 )                     65       (357 )
Income tax expense
     3,104       2,577                       3,104       2,831  
 
    
 		      
 		                      
 		      
 		  
Net income
   $ 4,861     $ 4,229                     $ 4,861     $ 4,585  
 
    
 		      
 		                      
 		      
 		  
Earnings per share:
                                                
Basic
   $ 0.23     $ 0.20                     $ 0.23     $ 0.22  
 
    
 		      
 		                      
 		      
 		  
Diluted
   $ 0.23     $ 0.20                     $ 0.23     $ 0.21  
 
    
 		      
 		                      
 		      
 		  
                                                 
    As-Reported   Same Station   Pro Forma (1)
Radio Segment   Three Months Ended   Three Months Ended   Three Months Ended
    June 30,   June 30,   June 30,
    2004
   2003
   2004
   2003
   2004
   2003
Net operating revenue
   $ 31,362     $ 28,675     $ 29,895     $ 28,675     $ 31,362     $ 30,859  
Station operating expense
     19,169       18,077       17,992       18,076       19,169       19,512  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
Station operating income (2)
     12,193       10,598       11,903       10,599       12,193       11,347  
Depreciation
     1,236       1,234       1,150       1,234       1,236       1,285  
Amortization
     64       117       40       117       64       133  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
Operating income
   $ 10,893     $ 9,247     $ 10,713     $ 9,248     $ 10,893     $ 9,929  
                                                 
    As-Reported   Same Station   Pro Forma (1)
Television Segment   Three Months Ended   Three Months Ended   Three Months Ended
    June 30,   June 30,   June 30,
    2004
   2003
   2004
   2003
   2004
   2003
Net operating revenue
   $ 3,765     $ 3,115     $ 3,480     $ 3,115     $ 3,765     $ 3,115  
Station operating expense
     2,838       2,420       2,588       2,413       2,838       2,420  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
Station operating income (2)
     927       695       892       702       927       695  
Depreciation
     423       388       388       388       423       388  
Amortization
     3       3       3       3       3       3  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
Operating income
   $ 501     $ 304     $ 501     $ 311     $ 501     $ 304  

(1)   Pro Forma results assume all acquisitions and dispositions in 2003 and 2004 occurred as of January 1, 2003.
 
(2)   Excludes depreciation, amortization, corporate general and administrative.

 

 

Saga Communications, Inc.
Selected Supplemental Financial Data
For the Six Months Ended
June 30, 2004 and 2003
(amounts in 000’s except per share data)
(Unaudited)

                                                 
    As-Reported   Same Station   Pro Forma (1)
Consolidated   Six Months Ended   Six Months Ended   Six Months Ended
    June 30,   June 30,   June 30,
    2004
   2003
   2004
   2003
   2004
   2003
Net operating revenue
   $ 64,300     $ 57,931     $ 61,536     $ 57,921     $ 65,007     $ 61,711  
Station operating expense
     42,525       39,310       40,281       39,291       42,988       42,266  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
Station operating income (2)
     21,775       18,621       21,255       18,630       22,019       19,445  
Corporate general and administrative
     3,912       3,141       3,912       3,141       3,912       3,141  
Depreciation
     3,383       3,390       3,197       3,390       3,399       3,488  
Amortization
     109       210       85       210       110       244  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
Operating income
     14,371       11,880     $ 14,061     $ 11,889       14,598       12,572  
Interest expense
     2,180       2,692                       2,180       2,836  
Other (income) expense, net
     73       (365 )                     73       (365 )
Income tax expense
     4,726       3,675                       4,819       3,899  
 
    
 		      
 		                      
 		      
 		  
Net income
   $ 7,392     $ 5,878                     $ 7,526     $ 6,202  
 
    
 		      
 		                      
 		      
 		  
Earnings per share:
                                                
Basic
   $ 0.36     $ 0.28                     $ 0.36     $ 0.30  
 
    
 		      
 		                      
 		      
 		  
Diluted
   $ 0.35     $ 0.28                     $ 0.35     $ 0.29  
 
    
 		      
 		                      
 		      
 		  
                                                 
    As-Reported   Same Station   Pro Forma (1)
Radio Segment   Six Months Ended   Six Months Ended   Six Months Ended
    June 30,   June 30,   June 30,
    2004
   2003
   2004
   2003
   2004
   2003
Net operating revenue
   $ 57,381     $ 52,200     $ 55,080     $ 52,190     $ 58,088     $ 55,980  
Station operating expense
     37,066       34,606       35,252       34,594       37,529       37,562  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
Station operating income (2)
     20,315       17,594       19,828       17,596       20,559       18,418  
Depreciation
     2,450       2,515       2,299       2,515       2,466       2,613  
Amortization
     102       203       78       203       103       237  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
Operating income
   $ 17,763     $ 14,876     $ 17,451     $ 14,878     $ 17,990     $ 15,568  
                                                 
    As-Reported   Same Station   Pro Forma (1)
Television Segment   Six Months Ended   Six Months Ended   Six Months Ended
    June 30,   June 30,   June 30,
    2004
   2003
   2004
   2003
   2004
   2003
Net operating revenue
   $ 6,919     $ 5,731     $ 6,456     $ 5,731     $ 6,919     $ 5,731  
Station operating expense
     5,459       4,704       5,029       4,697       5,459       4,704  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
Station operating income (2)
     1,460       1,027       1,427       1,034       1,460       1,027  
Depreciation
     834       776       799       776       834       776  
Amortization
     7       7       7       7       7       7  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
Operating income
   $ 619     $ 244     $ 621     $ 251     $ 619     $ 244  

(1)   Pro Forma results assume all acquisitions and dispositions in 2003 and 2004 occurred as of January 1, 2003.
 
(2)   Excludes depreciation, amortization, corporate general and administrative.

 

 

Saga Communications, Inc.
Selected Supplemental Financial Data
Quarterly Proforma Information
June 30, 2004 and 2003
(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,
    2004
   2003
   2004
   2003
   2004
   2003
   2004
   2003
Net operating revenue
   $ 29,880     $ 27,737     $ 35,127     $ 33,974             $ 32,118             $ 34,144  
Station operating expense
     20,981       20,334       22,007       21,932               20,323               22,178  
 
    
 		      
 		      
 		      
 		      
 		      
 		      
 		      
 		  
Station operating income (2)
     8,899       7,403       13,120       12,042       0       11,795       0       11,966  
Corporate general and administrative
     1,683       1,245       2,229       1,896               1,794               1,515  
Depreciation
     1,690       1,766       1,709       1,722               1,607               1,610  
Amortization
     43       108       67       136               141               129  
 
    
 		      
 		      
 		      
 		      
 		      
 		      
 		      
 		  
Operating income
     5,483       4,284       9,115       8,288       0       8,253       0       8,712  
Interest expense
     1,095       1,607       1,085       1,229               1,154               1,006  
Other (income) expense, net
     8       (8 )     65       (357 )             1,215               281  
Income tax expense
     1,715       1,068       3,104       2,831               2,376               2,792  
 
    
 		      
 		      
 		      
 		      
 		      
 		      
 		      
 		  
Net income
   $ 2,665     $ 1,617     $ 4,861     $ 4,585     $ 0     $ 3,508     $ 0     $ 4,633  
 
    
 		      
 		      
 		      
 		      
 		      
 		      
 		      
 		  
Earnings per share:
                                                                
Basic
   $ 0.13     $ 0.08     $ 0.23     $ 0.22             $ 0.17             $ 0.22  
 
    
 		      
 		      
 		      
 		      
 		      
 		      
 		      
 		  
Diluted
   $ 0.13     $ 0.08     $ 0.23     $ 0.21             $ 0.16             $ 0.22  
 
    
 		      
 		      
 		      
 		      
 		      
 		      
 		      
 		  
                                                                 
    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,
    2004
   2003
   2004
   2003
   2004
   2003
   2004
   2003
Net operating revenue
   $ 26,726     $ 25,121     $ 31,362     $ 30,859             $ 29,055             $ 30,706  
Station operating expense
     18,360       18,050       19,169       19,512               18,002               19,608  
 
    
 		      
 		      
 		      
 		      
 		      
 		      
 		      
 		  
Station operating income (2)
     8,366       7,071       12,193       11,347       0       11,053       0       11,098  
Depreciation
     1,230       1,328       1,236       1,285               1,208               1,125  
Amortization
     39       104       64       133               137               126  
 
    
 		      
 		      
 		      
 		      
 		      
 		      
 		      
 		  
Operating income
   $ 7,097     $ 5,639     $ 10,893     $ 9,929     $ 0     $ 9,708     $ 0     $ 9,847  
                                                                 
    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,
    2004
   2003
   2004
   2003
   2004
   2003
   2004
   2003
Net operating revenue
   $ 3,154     $ 2,616     $ 3,765     $ 3,115             $ 3,063             $ 3,438  
Station operating expense
     2,621       2,284       2,838       2,420               2,321               2,570  
 
    
 		      
 		      
 		      
 		      
 		      
 		      
 		      
 		  
Station operating income (2)
     533       332       927       695       0       742       0       868  
Depreciation
     411       388       423       388               349               435  
Amortization
     4       4       3       3               4               3  
 
    
 		      
 		      
 		      
 		      
 		      
 		      
 		      
 		  
Operating income (loss)
   $ 118       ($60 )   $ 501     $ 304     $ 0     $ 389     $ 0     $ 430  

(1)   Pro Forma results assume all acquisitions and dispositions in 2003 and 2004 occurred as of January 1, 2003.
 
(2)   Excludes depreciation, amortization, corporate general and administrative.

 

 

Saga Communications, Inc.
Selected Financial Data Non-GAAP Disclosures
For the Three Months Ended
June 30, 2004 and 2003
(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
    June 30,   June 30,   June 30,
    2004
   2003
   2004
   2003
   2004
   2003
Operating income (GAAP)
   $ 9,115     $ 7,606     $ 8,935     $ 7,614     $ 9,115     $ 8,288  
Corporate general and administrative
     2,229       1,896       2,229       1,896       2,229       1,896  
Depreciation
     1,709       1,671       1,588       1,671       1,709       1,722  
Amortization
     67       120       43       120       67       136  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
Station operating income
   $ 13,120     $ 11,293     $ 12,795     $ 11,301     $ 13,120     $ 12,042  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
                                                 
    As-Reported   Same Station   Pro Forma (1)
Radio Segment   Three Months Ended   Three Months Ended   Three Months Ended
    June 30,   June 30,   June 30,
    2004
   2003
   2004
   2003
   2004
   2003
Operating income (GAAP)
   $ 10,893     $ 9,247     $ 10,713     $ 9,248     $ 10,893     $ 9,929  
Corporate general and administrative
     —       —       —       —       —       —  
Depreciation
     1,236       1,234       1,150       1,234       1,236       1,285  
Amortization
     64       117       40       117       64       133  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
Station operating income
   $ 12,193     $ 10,598     $ 11,903     $ 10,599     $ 12,193     $ 11,347  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
                                                 
    As-Reported   Same Station   Pro Forma (1)
Television Segment   Three Months Ended   Three Months Ended   Three Months Ended
    June 30,   June 30,   June 30,
    2004
   2003
   2004
   2003
   2004
   2003
Operating income (GAAP)
   $ 501     $ 304     $ 501     $ 311     $ 501     $ 304  
Corporate general and administrative
     —       —       —       —       —       —  
Depreciation
     423       388       388       388       423       388  
Amortization
     3       3       3       3       3       3  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
Station operating income
   $ 927     $ 695     $ 892     $ 702     $ 927     $ 695  
 
    
 		      
 		      
 		      
 		      
 		      
 		  

(1)   Pro Forma results assume all acquisitions and dispositions in 2003 and 2004 occurred as of January 1, 2003.

 

 

Saga Communications, Inc.
Selected Financial Data Non-GAAP Disclosures
For the Six Months Ended
June 30, 2004 and 2003
(Unaudited)

Reconciliation of Station Operating Income to GAAP Operating Income

                                                 
    As-Reported   Same Station   Pro Forma (1)
Consolidated   Six Months Ended   Six Months Ended   Six Months Ended
    June 30,   June 30,   June 30,
    2004
   2003
   2004
   2003
   2004
   2003
Operating income (GAAP)
   $ 14,371     $ 11,880     $ 14,061     $ 11,889     $ 14,598     $ 12,572  
Corporate general and administrative
     3,912       3,141       3,912       3,141       3,912       3,141  
Depreciation
     3,383       3,390       3,197       3,390       3,399       3,488  
Amortization
     109       210       85       210       110       244  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
Station operating income
   $ 21,775     $ 18,621     $ 21,255     $ 18,630     $ 22,019     $ 19,445  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
                                                 
    As-Reported   Same Station   Pro Forma (1)
Radio Segment   Six Months Ended   Six Months Ended   Six Months Ended
    June 30,   June 30,   June 30,
    2004
   2003
   2004
   2003
   2004
   2003
Operating income (GAAP)
   $ 17,763     $ 14,876     $ 17,451     $ 14,878     $ 17,990     $ 15,568  
Corporate general and administrative
     —       —       —       —       —       —  
Depreciation
     2,450       2,515       2,299       2,515       2,466       2,613  
Amortization
     102       203       78       203       103       237  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
Station operating income
   $ 20,315     $ 17,594     $ 19,828     $ 17,596     $ 20,559     $ 18,418  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
                                                 
    As-Reported   Same Station   Pro Forma (1)
Television Segment   Six Months Ended   Six Months Ended   Six Months Ended
    June 30,   June 30,   June 30,
    2004
   2003
   2004
   2003
   2004
   2003
Operating income (GAAP)
   $ 619     $ 244     $ 621     $ 251     $ 619     $ 244  
Corporate general and administrative
     —       —       —       —       —       —  
Depreciation
     834       776       799       776       834       776  
Amortization
     7       7       7       7       7       7  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
Station operating income
   $ 1,460     $ 1,027     $ 1,427     $ 1,034     $ 1,460     $ 1,027  
 
    
 		      
 		      
 		      
 		      
 		      
 		  

(1)   Pro Forma results assume all acquisitions and dispositions in 2003 and 2004 occurred as of January 1, 2003.

 

 

Saga Communications, Inc.
Selected Financial Data Non-GAAP Disclosures
For the Three Months Ended
June 30, 2004 and 2003
(Unaudited)

Reconciliation of Pro Forma Station Operating Income to GAAP Pro Forma 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,
    2004
   2003
   2004
   2003
   2004
   2003
   2004
   2003
Pro forma operating income
   $ 5,483     $ 4,284     $ 9,115     $ 8,288     $ 0     $ 8,253     $ 0     $ 8,712  
Corporate general and administrative
     1,683       1,245       2,229       1,896       —       1,794       —       1,515  
Depreciation
     1,690       1,766       1,709       1,722       0       1,607       0       1,610  
Amortization
     43       108       67       136       —       141       —       129  
 
    
 		      
 		      
 		      
 		      
 		      
 		      
 		      
 		  
Pro forma station operating income
   $ 8,899     $ 7,403     $ 13,120     $ 12,042     $ 0     $ 11,795     $ 0     $ 11,966  
 
    
 		      
 		      
 		      
 		      
 		      
 		      
 		      
 		  
                                                                 
    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,
    2004
   2003
   2004
   2003
   2004
   2003
   2004
   2003
Pro forma operating income
   $ 7,097     $ 5,639     $ 10,893     $ 9,929     $ 0     $ 9,708     $ 0     $ 9,847  
Corporate general and administrative
     —       —       —       —       —       —       —       —  
Depreciation
     1,230       1,328       1,236       1,285       0       1,208       0       1,125  
Amortization
     39       104       64       133       —       137       —       126  
 
    
 		      
 		      
 		      
 		      
 		      
 		      
 		      
 		  
Pro forma station operating income
   $ 8,366     $ 7,071     $ 12,193     $ 11,347     $ 0     $ 11,053     $ 0     $ 11,098  
 
    
 		      
 		      
 		      
 		      
 		      
 		      
 		      
 		  
                                                                 
    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,
    2004
   2003
   2004
   2003
   2004
   2003
   2004
   2003
Pro forma operating income (loss)
   $ 118       ($60 )   $ 501     $ 304     $ 0     $ 389     $ 0     $ 430  
Corporate general and administrative
     —       —       —       —       —       —       —       —  
Depreciation
     411       388       423       388       0       349       0       435  
Amortization
     4       4       3       3       —       4       —       3  
 
    
 		      
 		      
 		      
 		      
 		      
 		      
 		      
 		  
Pro forma station operating income
   $ 533     $ 332     $ 927     $ 695     $ 0     $ 742     $ 0     $ 868  
 
    
 		      
 		      
 		      
 		      
 		      
 		      
 		      
 		  

(1)   Pro Forma results assume all acquisitions and dispositions in 2003 and 2004 occurred as of January 1, 2003.

 

 

Saga Communications, Inc.
Selected Financial Data Non-GAAP Disclosures
For the Three Months Ended
June 30, 2004 and 2003
(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
    June 30,   Entire Comparable   June 30,   June 30,   Entire Comparable   June 30,
    2004
   Period
   2004
   2003
   Period
   2003
Net operating revenue
   $ 35,127       ($1,752 )   $ 33,375     $ 31,790     $ 0     $ 31,790  
Station operating expense
     22,007       (1,427 )     20,580       20,497       (8 )     20,489  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
Station operating income (2)
     13,120       (325 )     12,795       11,293       8       11,301  
Corporate general and administrative
     2,229       —       2,229       1,896       —       1,896  
Depreciation
     1,709       (121 )     1,588       1,671       0       1,671  
Amortization
     67       (24 )     43       120       —       120  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
Operating income
   $ 9,115       ($180 )   $ 8,935     $ 7,606     $ 8     $ 7,614  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
                                                 
            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
    June 30,   Entire Comparable   June 30,   June 30,   Entire Comparable   June 30,
    2004
   Period
   2004
   2003
   Period
   2003
Net operating revenue
   $ 31,362       ($1,467 )   $ 29,895     $ 28,675     $ 0     $ 28,675  
Station operating expense
     19,169       (1,177 )     17,992       18,077       (1 )     18,076  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
Station operating income (2)
     12,193       (290 )     11,903       10,598       1       10,599  
Corporate general and administrative
     —       —       —       —       —       —  
Depreciation
     1,236       (86 )     1,150       1,234       0       1,234  
Amortization
     64       (24 )     40       117       —       117  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
Operating income
   $ 10,893       ($180 )   $ 10,713     $ 9,247     $ 1     $ 9,248  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
                                                 
            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
    June 30,   Entire Comparable   June 30,   June 30,   Entire Comparable   June 30,
    2004
   Period
   2004
   2003
   Period
   2003
Net operating revenue
   $ 3,765       ($285 )   $ 3,480     $ 3,115     $ 0     $ 3,115  
Station operating expense
     2,838       (250 )     2,588       2,420       (7 )     2,413  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
Station operating income (2)
     927       (35 )     892       695       7       702  
Corporate general and administrative
     —       —       —       —       —       —  
Depreciation
     423       (35 )     388       388       —       388  
Amortization
     3       —       3       3       —       3  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
Operating income
   $ 501     $ 0     $ 501     $ 304     $ 7     $ 311  
 
    
 		      
 		      
 		      
 		      
 		      
 		  

(2)   Excludes depreciation, amortization, corporate general and administrative.

 

 

Saga Communications, Inc.
Selected Financial Data Non-GAAP Disclosures
For the SixMonths Ended
June 30, 2004 and 2003
(Unaudited)

Reconciliation of Same Station Financial Information to GAAP Financial Information

                                                 
            Adjustment                   Adjustment    
    As-Reported   For Acquisitions   Same Station   As-Reported   For Acquisitions   Same Station
    Six Months   and Dispositions   Six Months   Six Months   and Dispositions   Six Months
Consolidated   Ended   Not Included in   Ended   Ended   Not Included in   Ended
    June 30,   Entire Comparable   June 30,   June 30,   Entire Comparable   June 30,
    2004
   Period
   2004
   2003
   Period
   2003
Net operating revenue
   $ 64,300       ($2,764 )   $ 61,536     $ 57,931       ($10 )   $ 57,921  
Station operating expense
     42,525       (2,244 )     40,281       39,310       (19 )     39,291  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
Station operating income (2)
     21,775       (520 )     21,255       18,621       9       18,630  
Corporate general and administrative
     3,912       —       3,912       3,141       —       3,141  
Depreciation
     3,383       (186 )     3,197       3,390       0       3,390  
Amortization
     109       (24 )     85       210       —       210  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
Operating income
   $ 14,371       ($310 )   $ 14,061     $ 11,880     $ 9     $ 11,889  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
                                                 
            Adjustment                   Adjustment    
    As-Reported   For Acquisitions   Same Station   As-Reported   For Acquisitions   Same Station
    Six Months   and Dispositions   Six Months   Six Months   and Dispositions   Six Months
Radio Segment   Ended   Not Included in   Ended   Ended   Not Included in   Ended
    June 30,   Entire Comparable   June 30,   June 30,   Entire Comparable   June 30,
    2004
   Period
   2004
   2003
   Period
   2003
Net operating revenue
   $ 57,381       ($2,301 )   $ 55,080     $ 52,200       ($10 )   $ 52,190  
Station operating expense
     37,066       (1,814 )     35,252       34,606       (12 )     34,594  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
Station operating income (2)
     20,315       (487 )     19,828       17,594       2       17,596  
Corporate general and administrative
     —       0       —       —       —       —  
Depreciation
     2,450       (151 )     2,299       2,515       0       2,515  
Amortization
     102       (24 )     78       203       —       203  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
Operating income
   $ 17,763       ($312 )   $ 17,451     $ 14,876     $ 2     $ 14,878  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
                                                 
            Adjustment                   Adjustment    
    As-Reported   For Acquisitions   Same Station   As-Reported   For Acquisitions   Same Station
    Six Months   and Dispositions   Six Months   Six Months   and Dispositions   Six Months
Television Segment   Ended   Not Included in   Ended   Ended   Not Included in   Ended
    June 30,   Entire Comparable   June 30,   June 30,   Entire Comparable   June 30,
    2004
   Period
   2004
   2003
   Period
   2003
Net operating revenue
   $ 6,919       ($463 )   $ 6,456     $ 5,731     $ 0     $ 5,731  
Station operating expense
     5,459       (430 )     5,029       4,704       (7 )     4,697  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
Station operating income (2)
     1,460       (33 )     1,427       1,027       7       1,034  
Corporate general and administrative
     —       0       —       —       —       —  
Depreciation
     834       (35 )     799       776       0       776  
Amortization
     7       0       7       7       —       7  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
Operating income
   $ 619     $ 2     $ 621     $ 244     $ 7     $ 251  
 
    
 		      
 		      
 		      
 		      
 		      
 		  

(2)   Excludes depreciation, amortization, corporate general and administrative.