Fisher Communications, Inc. (NASDAQ: FSCI), a leader in local media
innovation, today reported its financial results for the first
quarter ended March 31, 2012.
Fisher's consolidated revenue was $33.9 million, down 10% from
the first quarter of 2011. Excluding Fisher Plaza revenues from the
first quarter of 2011, Fisher's consolidated revenue was
essentially flat compared to the first quarter of 2011. A 9%
increase in Developing Media revenue and an 8% increase in
retransmission revenue helped TV net revenue performance.
Broadcast revenue declined primarily due to lower national
advertising spending in certain categories, including
pharmaceutical, financial services and tourism, as well as the
non-renewal of a long running radio joint sales agreement. This was
offset by increases in retail and automotive categories. While
political revenue was higher than the prior year, the Company did
not receive meaningful dollars in the first quarter as is typical
in Fisher markets during even-numbered years.
The Company reported a net loss of $1.9 million, or $0.21 per
share, in the first quarter, compared to a net loss of $1.7
million, or $0.20 per share, in the first quarter of 2011.
Broadcast cash flow increased 25% to $6.2 million, which
reflects the Company's continued focus on expense management.
Direct operating, selling, general and administrative and
programming expenses for the first quarter of 2012 decreased 5%, or
$1.7 million, from the first quarter of 2011, primarily due to
savings related to the non-renewal of a radio joint sales
agreement, a reduction in bad debt expense and program amortization
expenses. Last year's first quarter also included expenses related
to the Company's 2011 proxy contest and savings related to the
Company's revised vacation policy.
In connection with the sale of Fisher Plaza in the fourth
quarter of 2011, the Company leased-back its existing space in
Fisher Plaza for its Seattle operations and corporate headquarters.
Accordingly, the Company incurred rent expense of $1.3 million
during the quarter.
EBITDA was $0.2 million in the first quarter of 2012, a decrease
of $2.5 million from the same period in 2011. Adjusted EBITDA
(excluding Plaza rent expense in 2012 and Plaza EBITDA in 2011) was
$1.5 million in the first quarter of 2012, an increase of $1.0
million from the same period in 2011. First quarter 2012 EBITDA
included $1.3 million of Fisher Plaza rent expense and last year's
first quarter EBITDA included $2.2 million of Plaza EBITDA.
Commenting on the Company's financial performance, Fisher
President and Chief Executive Officer Colleen B. Brown stated,
"Through the strength of our broadcast stations and innovative
digital platforms, Fisher is able to expand its demographic reach
and deliver its valuable news, information and content to multiple
screens. We believe Fisher remains well positioned for strong
station performance and audience share growth. These are the
fundamentals that differentiate Fisher from its competitors and
will continue to make the Company a leader in redefining the future
of local media.
"Our first quarter results reflect a soft national marketplace.
Despite this, our stations continued to outperform the market in
both audience share and revenue growth during the quarter, which
are especially important as political spending begins its expected
acceleration as we get closer to the fall elections. We believe the
quality of our programming, the popularity of our award winning
journalism teams and the growth of our developing media program
provides Fisher a solid foundation to deliver long-term
growth."
Highlights for the First Quarter of
2012
(All financial comparisons are made to the first quarter of 2011
unless otherwise noted.)
Television:
- Net TV revenue stayed flat at $29.1 million.
- Retransmission consent revenue increased 8% to $3.6
million.
- Advertising increased in key categories, including Automotive,
Professional Services and Retail, which grew 4%, 2%, and 11%,
respectively.
- Political revenue (net) increased 490% to $519,000.
- TV cash flow increased $0.6 million to $5.3 million; TV cash
flow margin was 18.1%, up from 16.0%.
- Developing Media revenue grew 9% to $1.3 million. Total
Developing Media revenue, including multiplatform internet related
revenue (which is reported in TV core net advertising revenue) was
6% of TV net revenue for both the first quarter of 2012 and
2011.
- Developing Media page views were up 19% and unique visitors
were up 38% in March 2012 compared to March 2011.
- Fisher stations were recently recognized for their quality
journalism with 80 Emmy nominations, six Golden Mic Awards, two
Associated Press Mark Twain Awards and six Edward R. Murrow Awards
including for Overall Excellence and Best Newscast for KOMO
Newsradio.
Radio:
- Radio net revenue decreased 3% to $4.7 million.
- Radio cash flow grew $611,000 to $872,000 and Radio cash flow
margin improved to 18.4% from 5.4%.
Balance Sheet and Liquidity:
- Cash, short-term and long term-investments were $90.3 million
at quarter-end, compared to $176.5 million at the end of 2011. Cash
used in operating activities of $19.8 million consists of $1.9
million of cash generated from operations offset by $21.7 million
in estimated 2011 tax payments, net of refunds received. During the
quarter, the Company used its strong cash position to redeem its
remaining outstanding senior notes, making the Company debt-free.
In addition, Fisher invested $4.4 million in capital expenditures
related to digital equipment. All of the Company's short-term and
long-term investments are in U.S. Treasuries.
First Quarter Conference Call
Fisher will host a conference call today at 1:00 p.m. (PDT).
Senior management will discuss the financial results and host a
question and answer session. The dial-in number for the audio
conference call is 1-866-783-2139; confirmation code 33064920. A
live audio webcast of the call will be accessible to the public on
Fisher's Web site, www.fsci.com. A recording of the webcast will
subsequently be archived on the Web site and available for replay
for one week following the call. An audio replay of the call can be
accessed for one week by dialing 1-888-286-8010 and entering
confirmation code 33988672.
Definitions and Disclosures Regarding Non-GAAP
Financial Information
The Company reports and discusses its operating results using
financial measures consistent with generally accepted accounting
principles (GAAP) and believes this should be the primary basis for
evaluating its performance.
The preceding discussion of our results includes a discussion of
non-GAAP financial measures such as Television cash flow, Radio
cash flow, Broadcast cash flow and Earnings Before Interest, Taxes,
Depreciation and Amortization (EBITDA). These non-GAAP measures
should not be viewed as alternatives or substitutes for GAAP
reporting.
The Company believes the presentation of these non-GAAP measures
is useful to investors because they are used by lenders to measure
the Company's ability to service debt; by industry analysts to
determine the market value of stations and their operating
performance; and by management to identify the cash available to
service debt, make strategic acquisitions and investments, maintain
capital assets and fund ongoing operations and working capital
needs; and, because they reflect the most up-to-date operating
results of the stations inclusive of pending acquisitions, time
brokerage agreements or local marketing agreements. Management
believes they also provide an additional basis from which investors
can establish forecasts and valuations for the Company's
business.
Television and radio cash flow are calculated as television and
radio segment income (loss) from operations plus amortization of
broadcast rights, non-cash charges, Internet and trade expenses
minus payments for broadcast rights and non-convergence Internet
revenue. Broadcast cash flow is calculated by adding the Television
and radio cash flow.
EBITDA is calculated as income (loss) from operations plus
amortization of broadcast rights; depreciation and amortization;
stock-based compensation; loss on disposal of property, plant and
equipment, net; proxy related costs; and non-cash charges minus
payments for broadcast rights; gain on sale of real estate, net;
Plaza fire reimbursements, net; and amortization of non-cash
benefit resulting from a change in national advertising
representation firm.
Adjusted EBITDA excludes Fisher Plaza rent expense and Plaza
EBITDA. Plaza EBITDA is calculated as Plaza segment income (loss)
from operations.
For a reconciliation of these non-GAAP financial measurements to
the GAAP financial results cited in this press release, please see
the supplemental tables at the end of this release.
About Fisher Communications, Inc.
Fisher Communications, Inc. is a Seattle-based communications
Company that owns and operates 13 full power television stations, 7
low power television stations, and 3 owned radio stations and one
managed radio station in the Western United States. The Company
also owns and operates Fisher Interactive Network, its online
division (including over 120 online sites) and Fisher Pathways, a
satellite and fiber transmission provider. For more information
about Fisher Communications, Inc., go to www.fsci.com.
Forward-Looking Statements
This news release includes forward-looking statements. We have
based these forward-looking statements on our current expectations
and projections about future events. Forward-looking statements
include information preceded by, followed by, or that includes the
words "guidance," "believes," "expects," "intends," "anticipates,"
"could," or similar expressions. For these statements, the Company
claims the protection of the safe harbor for forward-looking
statements contained in the Private Securities Litigation Reform
Act of 1995. The forward-looking statements contained in this news
release, concerning, among other things, future political
advertising spending, changes in revenue, cash flow and operating
expenses, involve risks and uncertainties, and are subject to
change based on various important factors, including the impact of
changes in national and regional economies, the competitiveness of
political races and voter initiatives, successful integration of
acquired television stations (including achievement of synergies
and cost reductions), pricing fluctuations in local and national
advertising, future regulatory actions and conditions in the
television stations' operating areas, competition from others in
the broadcast television markets served by the Company, volatility
in programming costs, the effects of governmental regulation of
broadcasting, industry consolidation, technological developments
and major world news events. Unless required by law, we undertake
no obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
In light of these risks, uncertainties and assumptions, the
forward-looking events discussed in this news release might not
occur. You should not place undue reliance on these forward-looking
statements, which speak only as of the date of this release. For
more details on factors that could affect these expectations,
please see the risk factors in our Annual Report on Form 10-K for
the year ended December 31, 2011, which we have filed with the
Securities and Exchange Commission.
Fisher Communications, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
Three months ended
March 31, %
(in thousands, except per-share amounts) 2012 2011 Change
--------- --------- ------
Revenue $ 33,932 $ 37,552 (10%)
--------- --------- ------
Operating expenses
Direct operating costs 16,656 17,674 (6%)
Selling, general and administrative
expenses 14,554 14,750 (1%)
Amortization of broadcast rights 2,457 2,970 (17%)
Depreciation and amortization 1,757 2,658 (34%)
Gain on sale of real estate, net (373) - n/a
Plaza fire reimbursements, net - (78) 100%
--------- --------- ------
Total operating expenses 35,051 37,974 (8%)
--------- --------- ------
Loss from continuing operations (1,119) (422) (165%)
Loss on extinguishment of senior notes, net (1,482) (110)
Other income, net 30 80
Interest expense (266) (2,247)
--------- ---------
Loss from continuing operations before income
taxes (2,837) (2,699)
Benefit for income taxes (973) (980)
--------- ---------
Less from continuing operations, net of
income taxes (1,864) (1,719)
Loss from discontinued operations, net of
income taxes - (8)
--------- ---------
Net loss $ (1,864) $ (1,727)
========= =========
Net loss per share (basic and diluted):
From continuing operations $ (0.21) $ (0.20)
From discontinued operations - -
--------- ---------
Net loss per share (basic and diluted) $ (0.21) $ (0.20)
========= =========
Weighted average shares outstanding (basic
and diluted) 8,847 8,809
========= =========
Fisher Communications, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
March 31, December 31,
(in thousands) 2012 2011
------------- -------------
ASSETS
Current assets
Cash and cash equivalents $ 6,829 $ 143,017
Short-term debt security investments 47,641 33,481
Receivables, net 27,074 32,402
Income taxes receivable 1,434 117
Deferred income taxes, net 1,825 1,825
Prepaid expenses and other 3,051 3,062
Broadcast rights 4,529 6,789
------------- -------------
Total current assets 92,383 220,693
Restricted cash 3,599 3,594
Long-term debt security investments 35,865 -
Cash surrender value of life insurance and
annuity contracts 17,486 17,278
Goodwill, net 13,293 13,293
Intangible assets, net 40,249 40,307
Other assets 4,428 5,006
Deferred income taxes, net 3,349 3,367
Assets held for sale 564 658
Property, plant and equipment, net 39,859 40,921
------------- -------------
Total assets $ 251,075 $ 345,117
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Current maturities of long-term debt $ - $ 61,834
Accounts payable 2,507 3,754
Accrued payroll and related benefits 4,363 4,660
Interest payable - 1,556
Broadcast rights payable 4,093 6,541
Income taxes payable 95 21,468
Current portion of accrued retirement benefits 1,302 1,302
Other current liabilities 5,849 8,708
------------- -------------
Total current liabilities 18,209 109,823
Deferred income 9,390 10,036
Accrued retirement benefits 20,490 20,525
Other liabilities 2,843 2,688
------------- -------------
Total liabilities 50,932 143,072
------------- -------------
Total stockholders' equity 200,143 202,045
------------- -------------
Total liabilities and stockholders' equity $ 251,075 $ 345,117
============= =============
Fisher Communications, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flow
(Unaudited)
Three months ended March 31,
(in thousands) 2012 2011
------------- -------------
Operating activities
Net loss $ (1,864) $ (1,727)
Adjustments to reconcile net loss to net
cash provided by (used in) operating
activities
Depreciation and amortization 1,757 2,658
Deferred income taxes, net 18 10
Loss on extinguishment of senior notes,
net 594 110
Loss in operations of equity investees 44 50
Loss on disposal of property, plant and
equipment, net 11 34
Gain on sale of real estate, net (373) -
Amortization of deferred financing fees 19 91
Amortization of deferred gain on sale of
Fisher Plaza (190) -
Amortization of debt security investment
premium 74 -
Amortization of non-cash contract
termination fee (365) (365)
Amortization of broadcast rights 2,457 2,970
Payments for broadcast rights (2,651) (3,193)
Stock-based compensation 451 300
Change in operating assets and liabilities,
net
Receivables 5,328 2,904
Prepaid expenses and other 12 (682)
Cash surrender value of life insurance and
annuity contracts (207) 2,214
Other assets 37 10
Accounts payable, accrued payroll and
related benefits and other current
liabilities (815) (1,675)
Interest payable (1,556) (2,197)
Income taxes receivable and payable (22,691) (272)
Accrued retirement benefits (2) 18
Other liabilities 117 (158)
------------- -------------
Net cash provided by (used in)
operating activities (19,795) 1,100
------------- -------------
Investing activities
Investment in equity investee (9) (4)
Purchase of debt security investments (82,733) -
Proceeds from sale of debt security
investments 7,628 -
Proceeds from maturity of debt security
investments 25,000 -
Purchase of property, plant and equipment (4,445) (743)
Proceeds from sale of real estate 570 -
------------- -------------
Net cash used in investing activities (53,989) (747)
------------- -------------
Financing activities
Repurchase of senior notes (61,834) (2,685)
Repurchase of common stock (86) -
Shares settled on vesting of stock rights (437) (349)
Proceeds from exercise of stock options - 72
Payments on capital lease obligations (47) (44)
------------- -------------
Net cash used in financing activities (62,404) (3,006)
------------- -------------
Net decrease in cash and cash equivalents (136,188) (2,653)
Cash and cash equivalents, beginning of period 143,017 52,945
------------- -------------
Cash and cash equivalents, end of period $ 6,829 $ 50,292
============= =============
Fisher Communications, Inc. and Subsidiaries
GAAP to Non-GAAP Reconciliations
(Unaudited, in thousands)
The following table provides a reconciliation of income (loss)
from operations (GAAP) to EBITDA (non-GAAP) and Adjusted EBITDA
(non-GAAP) in each of the periods presented:
Three months ended March 31,
----------------------------
2012 2011
------------- -------------
Loss from continuing operations $ (1,119) $ (422)
Adjustments:
Amortization of broadcast rights 2,457 2,970
Payments for broadcast rights (2,651) (3,193)
Depreciation and amortization 1,757 2,658
Stock-based compensation 451 300
Loss on disposal of property, plant and
equipment, net 11 34
Gain on sale of real estate, net (373) -
Plaza fire reimbursements, net - (78)
Proxy related costs 45 774
Amortization of non-cash benefit resulting
from change in national advertising
representation firm (365) (365)
------------- -------------
EBITDA (Non-GAAP) $ 213 $ 2,678
============= =============
Fisher Plaza rent expense 1,271 -
Plaza EBITDA - (2,201)
------------- -------------
Adjusted EBITDA (Non-GAAP) $ 1,484 $ 477
============= =============
The following table provides a reconciliation of television
income (loss) from operations (GAAP) to television cash flow
(non-GAAP) in each of the periods presented:
Three months ended March 31,
----------------------------
2012 2011
------------- -------------
Television segment income from continuing
operations $ 5,079 $ 4,655
Adjustments:
Amortization of broadcast rights 2,457 2,970
Payments for broadcast rights (2,651) (3,193)
Net trade and non-convergence developing
media loss 394 221
------------- -------------
Television broadcast cash flow (Non-GAAP) $ 5,279 $ 4,653
============= =============
Television broadcast cash flow as a percentage
of television segment revenue 18.1% 16.0%
============= =============
Television segment revenue $ 29,159 $ 29,101
============= =============
The following table provides a reconciliation of radio income
(loss) from operations (GAAP) to radio cash flow (non-GAAP) in each
of the periods presented:
Three months ended March 31,
----------------------------
2012 2011
------------- -------------
Radio segment income from continuing
operations $ 798 $ 172
Adjustments:
Net trade loss 74 89
------------- -------------
Radio broadcast cash flow (Non-GAAP) $ 872 $ 261
============= =============
Radio broadcast cash flow as a percentage of
radio segment revenue 18.4% 5.4%
============= =============
Radio segment revenue $ 4,733 $ 4,859
============= =============
The following table provides television net revenue comparisons
in each of the periods presented:
Three months ended March 31, %
----------------------------- ------
2012 2011 Change
-------------- -------------- ------
Core advertising (local and national) $ 22,214 $ 22,751 (2%)
Political 519 88 490%
Developing media 1,282 1,178 9%
Retransmission 3,577 3,302 8%
Trade, barter and other 1,567 1,782 (12%)
-------------- -------------- ------
Television segment net revenue $ 29,159 $ 29,101 0%
============== ============== ======
Television segment net revenue,
excluding political $ 28,640 $ 29,013 (1%)
The following table provides radio net revenue comparisons in
each of the periods presented:
Three months ended March 31, %
----------------------------- ------
2012 2011 Change
-------------- -------------- ------
Core advertising (local and national) $ 4,458 $ 4,616 (3%)
Political 40 33 21%
Trade, barter and other 235 210 12%
-------------- -------------- ------
Radio segment net revenue $ 4,733 $ 4,859 (3%)
============== ============== ======
Radio segment net revenue, excluding
political $ 4,693 $ 4,826 (3%)
Contacts: Sard Verbinnen & Co Paul Kranhold or Ron Low (415)
618-8750 Robin Weinberg (212) 687-8080
Fisher Communications (NASDAQ:FSCI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Fisher Communications (NASDAQ:FSCI)
Historical Stock Chart
From Jul 2023 to Jul 2024
