(Mark one) | ||
þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the fiscal year ended December 31, | ||
OR | ||
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||
For the transition period for to |
| ||
Delaware | 38-3042953 | |
(State or other jurisdiction of | (I.R.S. Employer | |
incorporation or organization) | Identification No.) | |
73 Kercheval Avenue | 48236 | |
Grosse Pointe Farms, Michigan | (Zip Code) | |
(Address of principal executive offices) |
Title of each class | Name of each exchange on which registered | |
Class A Common Stock, $.01 par value | NYSE MKT |
Large accelerated filer ¨ | Accelerated filer þ | Non-accelerated filer ¨ | Smaller reporting company ¨ |
$215,596,299.
2012
Page | |||
PART I | |||
Item 1. | Business | 4 | |
Item 1A. | Risk Factors | 24 | |
Item 1B. | Unresolved Staff Comments | 29 | |
Item 2. | Properties | 29 | |
Item 3. | Legal Proceedings | 29 | |
Item 4. | Mine Safety Disclosures | 29 | |
PART II | |||
Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 29 | |
Item 6. | Selected Financial Data | 32 | |
Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 33 | |
Item 7A. | Quantitative and Qualitative Disclosures about Market Risk | 46 | |
Item 8. | Financial Statements and Supplementary Data | 46 | |
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | 46 | |
Item 9A. | Controls and Procedures | 47 | |
Item 9B. | Other Information | 49 | |
PART III | |||
Item 10. | Directors, Executive Officers and Corporate Governance | 49 | |
Item 11. | Executive Compensation | 49 | |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | 49 | |
Item 13. | Certain Relationships and Related Transactions, and Director Independence | 49 | |
Item 14. | Principal Accountant Fees and Services | 49 | |
PART IV | |||
Item 15. | Exhibits and Financial Statement Schedules | 50 | |
Signatures | 79 |
2 | ||
3 | ||
2012 | 2012 | ||||||||||
Market | Market | ||||||||||
Ranking | Ranking | ||||||||||
By Radio | By Radio | Target | |||||||||
Station | Market (a) | Revenue (b) | Market (b) | Station Format | Demographics | ||||||
FM: | |||||||||||
WKLH | Milwaukee, WI | 29 | 38 | Classic Rock | Men 35-54 | ||||||
WHQG | Milwaukee, WI | 29 | 38 | Rock | Men 25-49 | ||||||
WJMR-FM | Milwaukee, WI | 29 | 38 | Urban Adult Contemporary | Women 25-54 | ||||||
WNRG-FM | Milwaukee, WI | 29 | 38 | Contemporary Hits | Adults 18-34 | ||||||
WSNY | Columbus, OH | 36 | 35 | Adult Contemporary | Women 25-54 | ||||||
WNND | Columbus, OH | 36 | 35 | Adult Hits | Adults 25-49 | ||||||
WNNP | Columbus, OH | 36 | 35 | Adult Hits | Adults 25-49 | ||||||
WVMX | Columbus, OH | 36 | 35 | Hot Adult Contemporary | Women 25-44 | ||||||
WNOR | Norfolk, VA | 40 | 44 | Rock | Men 18-49 | ||||||
WAFX | Norfolk, VA | 40 | 44 | Classic Rock | Men 35-54 | ||||||
KSTZ | Des Moines, IA | 68 | 73 | Hot Adult Contemporary | Women 25-44 | ||||||
KIOA | Des Moines, IA | 68 | 73 | Classic Hits/Oldies | Adults 45-64 | ||||||
KAZR | Des Moines, IA | 68 | 73 | Rock | Men 18-34 | ||||||
KLTI-FM | Des Moines, IA | 68 | 73 | Adult Contemporary | Women 35-54 | ||||||
KIOA-HD2 | Des Moines, IA | 68 | 73 | Contemporary Hits | Adults 18-34 | ||||||
WMGX | Portland, ME | 78 | 90 | Hot Adult Contemporary | Women 25-44 | ||||||
WYNZ | Portland, ME | 78 | 90 | Classic Hits/Oldies | Adults 45-64 | ||||||
WPOR | Portland, ME | 78 | 90 | Country | Adults 25-54 | ||||||
WCLZ | Portland, ME | 78 | 90 | Adult Album Alternative | Adults 25-54 | ||||||
WAQY | Springfield, MA | 106 | 91 | Classic Rock | Men 35-54 | ||||||
WLZX | Springfield, MA | 106 | 91 | Rock | Men 18-34 | ||||||
WRSI | Northampton, MA | N/A | N/A | Adult Album Alternative | Adults 35-54 | ||||||
WLZX-HD2 | Northampton, MA | N/A | N/A | Contemporary Hits | Adults 18-34 | ||||||
WRSY | Brattleboro, VT | N/A | N/A | Adult Album Alternative | Adults 35-54 | ||||||
WHAI | Greenfield, MA | N/A | N/A | Adult Contemporary | Women 25-54 | ||||||
WPVQ | Greenfield, MA | N/A | N/A | Country | Adults 25-54 | ||||||
WZID | Manchester, NH | 117 | 196 | Adult Contemporary | Women 25-54 | ||||||
WMLL | Manchester, NH | 117 | 196 | Classic Hits | Adults 35-54 | ||||||
WZID-HD2 | Manchester, NH | 117 | 196 | Contemporary Hits | Adults 18-34 | ||||||
WLRW | Champaign, IL | 160 | 210 | Hot Adult Contemporary | Women 25-44 | ||||||
WIXY | Champaign, IL | 160 | 210 | Country | Adults 25-54 | ||||||
WCFF | Champaign, IL | 160 | 210 | Classic Hits | Adults 35-44 | ||||||
WYXY | Champaign, IL | 160 | 210 | Classic Country | Adults 45-64 | ||||||
WLRW-HD2 | Champaign, IL | 160 | 210 | Oldies/Classic Hits | Adults 45-64 | ||||||
WIXY-HD2 | Champaign, IL | 160 | 210 | Rock | Men 18-49 | ||||||
WIXY-HD3 | Champaign, IL | 160 | 210 | Contemporary Hits | Adults 18-34 |
2014:
2013 | 2013 | |||||||||
Market | Market | |||||||||
Ranking | Ranking | |||||||||
By Radio | By Radio | Target | ||||||||
Station | Market (a) | Revenue (b) | Market (b) | Station Format | Demographics | |||||
FM: | ||||||||||
WKLH | Milwaukee, WI | 30 | 38 | Classic Rock | Men 35-54 | |||||
WHQG | Milwaukee, WI | 30 | 38 | Rock | Men 25-49 | |||||
WJMR-FM | Milwaukee, WI | 30 | 38 | Urban Adult Contemporary | Women 25-54 | |||||
WJMR-HD2 | Milwaukee, WI | 30 | 38 | Religious | 12+ | |||||
WNRG-FM | Milwaukee, WI | 30 | 38 | Contemporary Hits | Adults 18-34 | |||||
WSNY | Columbus, OH | 35 | 35 | Adult Contemporary | Women 25-54 | |||||
WNND | Columbus, OH | 35 | 35 | Adult Hits | Adults 25-49 | |||||
WNNP | Columbus, OH | 35 | 35 | Adult Hits | Adults 25-49 | |||||
WVMX | Columbus, OH | 35 | 35 | Hot Adult Contemporary | Women 25-44 | |||||
WNOR | Norfolk, VA | 40 | 44 | Rock | Men 18-49 | |||||
WAFX | Norfolk, VA | 40 | 44 | Classic Rock | Men 35-54 | |||||
KSTZ | Des Moines, IA | 69 | 74 | Hot Adult Contemporary | Women 25-44 | |||||
KIOA | Des Moines, IA | 69 | 74 | Classic Hits/Oldies | Adults 45-64 | |||||
KAZR | Des Moines, IA | 69 | 74 | Rock | Men 18-34 | |||||
KMYR | Des Moines, IA | 69 | 74 | Adult Contemporary | Women 35-54 | |||||
KIOA-HD2 | Des Moines, IA | 69 | 74 | Contemporary Hits | Adults 18-34 | |||||
WMGX | Portland, ME | 77 | 90 | Hot Adult Contemporary | Women 25-44 | |||||
WMGX-HD2 | Portland, ME | 77 | 90 | News | Adults 35-64 | |||||
WYNZ | Portland, ME | 77 | 90 | Classic Hits/Oldies | Adults 45-64 | |||||
WPOR | Portland, ME | 77 | 90 | Country | Adults 25-54 | |||||
WCLZ | Portland, ME | 77 | 90 | Adult Album Alternative | Adults 25-54 | |||||
WAQY | Springfield, MA | 98 | 92 | Classic Rock | Men 35-54 | |||||
WLZX | Springfield, MA | 98 | 92 | Rock | Men 18-34 | |||||
WRSI | Northampton, MA | N/A | N/A | Adult Album Alternative | Adults 35-54 | |||||
WLZX-HD2 | Northampton, MA | N/A | N/A | Contemporary Hits | Adults 18-34 | |||||
WRSY | Brattleboro, VT | N/A | N/A | Adult Album Alternative | Adults 35-54 | |||||
WHAI | Greenfield, MA | N/A | N/A | Adult Contemporary | Women 25-54 | |||||
WPVQ | Greenfield, MA | N/A | N/A | Country | Adults 25-54 | |||||
WZID | Manchester, NH | 115 | 196 | Adult Contemporary | Women 25-54 | |||||
WMLL | Manchester, NH | 115 | 196 | Classic Hits | Adults 35-54 | |||||
WZID-HD2 | Manchester, NH | 115 | 196 | Contemporary Hits | Adults 18-34 | |||||
WLRW | Champaign, IL | 162 | 210 | Hot Adult Contemporary | Women 25-44 | |||||
WIXY | Champaign, IL | 162 | 210 | Country | Adults 25-54 | |||||
WCFF | Champaign, IL | 162 | 210 | Classic Hits | Adults 35-44 | |||||
WYXY | Champaign, IL | 162 | 210 | Classic Country | Adults 45-64 | |||||
WLRW-HD2 | Champaign, IL | 162 | 210 | Oldies/Classic Hits | Adults 45-64 | |||||
WIXY-HD2 | Champaign, IL | 162 | 210 | Rock | Men 18-49 | |||||
WIXY-HD3 | Champaign, IL | 162 | 210 | Contemporary Hits | Adults 18-34 |
(footnotes follow tables)
2012 | 2012 | ||||||||||
Market | Market | ||||||||||
Ranking | Ranking | ||||||||||
By Radio | By Radio | Target | |||||||||
Station | Market (a) | Revenue (b) | Market (b) | Station Format | Demographics | ||||||
WYMG | Springfield, IL | N/A | N/A | Classic Rock | Men 25-54 | ||||||
WQQL | Springfield, IL | N/A | N/A | Classic Hits/Oldies | Adults 45-64 | ||||||
WDBR | Springfield, IL | N/A | N/A | Contemporary Hits | Adults 18-34 | ||||||
WABZ | Springfield, IL | N/A | N/A | Variety Hits | Adults 25-54 | ||||||
WOXL-FM | Asheville, NC | 153 | 159 | Adult Contemporary | Women 25-54 | ||||||
WTMT | Asheville, NC | 153 | 159 | Rock | Men 18-49 | ||||||
WOXL-HD2 | Asheville, NC | 153 | 159 | Adult Album Alternative | Adults 18-49 | ||||||
WNAX-FM | Yankton, SD | 194 | 264 | Country | Adults 35+ | ||||||
WWWV | Charlottesville, VA | N/A | N/A | Rock | Men 25-54 | ||||||
WQMZ | Charlottesville, VA | N/A | N/A | Adult Contemporary | Women 25-54 | ||||||
WCNR | Charlottesville, VA | N/A | N/A | Adult Album Alternative | Adults 18-49 | ||||||
KEGI | Jonesboro, AR | 239 | 228 | Classic Hits | Men 25-54 | ||||||
KDXY | Jonesboro, AR | 239 | 228 | Country | Adults 25-54 | ||||||
KJBX | Jonesboro, AR | 239 | 228 | Adult Contemporary | Women 25-54 | ||||||
KDXY-HD2 | Jonesboro, AR | 239 | 228 | Contemporary Hits | Adults 18-34 | ||||||
KDXY-HD3 | Jonesboro, AR | 239 | 228 | Oldies | Adults 45-64 | ||||||
WCVQ | Clarksville, TN — Hopkinsville, KY | N/A | N/A | Hot Adult Contemporary | Women 25-54 | ||||||
WVVR | Clarksville, TN — Hopkinsville, KY | N/A | N/A | Country | Adults 25-54 | ||||||
WZZP | Clarksville, TN — Hopkinsville, KY | N/A | N/A | Rock | Men 18-34 | ||||||
WEGI-FM | Clarksville, TN — Hopkinsville, KY | N/A | N/A | Classic Hits | Adults 35-54 | ||||||
KISM | Bellingham, WA | N/A | N/A | Classic Rock | Men 25-54 | ||||||
KAFE | Bellingham, WA | N/A | N/A | Adult Contemporary | Women 25-54 | ||||||
KICD-FM | Spencer, IA | N/A | N/A | Country | Adults 35+ | ||||||
KLLT | Spencer, IA | N/A | N/A | Adult Contemporary | Women 25-54 | ||||||
KMIT | Mitchell, SD | N/A | N/A | Country | Adults 35+ | ||||||
KUQL | Mitchell, SD | N/A | N/A | Classic Hits/Oldies | Adults 45-64 | ||||||
WKVT-FM | Brattleboro, VT | N/A | N/A | Classic Hits | Adults 25-54 | ||||||
WKNE | Keene, NH | N/A | N/A | Hot Adult Contemporary | Women 25-54 | ||||||
WSNI | Keene, NH | N/A | N/A | Adult Contemporary | Women 35-54 | ||||||
WINQ | Keene, NH | N/A | N/A | Country | Adults 25-54 | ||||||
WKNE-HD2 | Keene, NH | N/A | N/A | Classic Rock | Men 25-54 | ||||||
WKNE-HD3 | Keene, NH | N/A | N/A | Classic Hits/Oldies | Adults 45-64 | ||||||
WQEL | Bucyrus, OH | N/A | N/A | Classic Hits | Adults 25-54 | ||||||
WIII | Ithaca, NY | N/A | N/A | Classic Rock | Men 25-54 | ||||||
WQNY | Ithaca, NY | N/A | N/A | Country | Adults 25-54 | ||||||
WYXL | Ithaca, NY | N/A | N/A | Adult Contemporary | Women 25-54 | ||||||
WYXL-HD2 | Ithaca, NY | N/A | N/A | Contemporary Hits | Adults 18-34 | ||||||
WYXL-HD3 | Ithaca, NY | N/A | N/A | Adult Album Alternative | Adults 35-54 | ||||||
WQNY-HD3 | Ithaca, NY | N/A | N/A | News Talk | Adults 35+ |
4 | ||
2013 | 2013 | |||||||||
Market | Market | |||||||||
Ranking | Ranking | |||||||||
By Radio | By Radio | Target | ||||||||
Station | Market (a) | Revenue (b) | Market (b) | Station Format | Demographics | |||||
WYMG | Springfield, IL | N/A | N/A | Classic Rock | Men 25-54 | |||||
WQQL | Springfield, IL | N/A | N/A | Classic Hits/Oldies | Adults 45-64 | |||||
WDBR | Springfield, IL | N/A | N/A | Contemporary Hits | Adults 18-34 | |||||
WLFZ | Springfield, IL | N/A | N/A | Country | Adults 25-54 | |||||
WDBR-HD2 | Springfield, IL | N/A | N/A | Variety Hits | Adults 25-54 | |||||
WOXL-FM | Asheville, NC | 149 | 159 | Adult Contemporary | Women 25-54 | |||||
WTMT | Asheville, NC | 149 | 159 | Rock | Men 18-49 | |||||
WTMT-HD2 | Asheville, NC | 149 | 159 | Sports | Men 25-54 | |||||
WOXL-HD2 | Asheville, NC | 149 | 159 | Adult Album Alternative | Adults 18-49 | |||||
WNAX-FM | Yankton, SD | 192 | 261 | Country | Adults 35+ | |||||
WWWV | Charlottesville, VA | N/A | N/A | Rock | Men 25-54 | |||||
WQMZ | Charlottesville, VA | N/A | N/A | Adult Contemporary | Women 25-54 | |||||
WCNR | Charlottesville, VA | N/A | N/A | Adult Album Alternative | Adults 18-49 | |||||
KEGI | Jonesboro, AR | 232 | 226 | Classic Hits | Men 25-54 | |||||
KDXY | Jonesboro, AR | 232 | 226 | Country | Adults 25-54 | |||||
KJBX | Jonesboro, AR | 232 | 226 | Adult Contemporary | Women 25-54 | |||||
KDXY-HD2 | Jonesboro, AR | 232 | 226 | Contemporary Hits | Adults 18-34 | |||||
KDXY-HD3 | Jonesboro, AR | 232 | 226 | Contemporary Christian | Adults 25-54 | |||||
WCVQ | Clarksville, TN — Hopkinsville, KY | N/A | N/A | Hot Adult Contemporary | Women 25-54 | |||||
WVVR | Clarksville, TN — Hopkinsville, KY | N/A | N/A | Country | Adults 25-54 | |||||
WZZP | Clarksville, TN — Hopkinsville, KY | N/A | N/A | Rock | Men 18-34 | |||||
WEGI-FM | Clarksville, TN — Hopkinsville, KY | N/A | N/A | Classic Hits | Adults 35-54 | |||||
KISM | Bellingham, WA | N/A | N/A | Classic Rock | Men 25-54 | |||||
KAFE | Bellingham, WA | N/A | N/A | Adult Contemporary | Women 25-54 | |||||
KICD-FM | Spencer, IA | N/A | N/A | Country | Adults 35+ | |||||
KLLT | Spencer, IA | N/A | N/A | Adult Contemporary | Women 25-54 | |||||
KMIT | Mitchell, SD | N/A | N/A | Country | Adults 35+ | |||||
KUQL | Mitchell, SD | N/A | N/A | Classic Hits/Oldies | Adults 45-64 | |||||
WKVT-FM | Brattleboro, VT | N/A | N/A | Classic Hits | Adults 25-54 | |||||
WKNE | Keene, NH | N/A | N/A | Hot Adult Contemporary | Women 25-54 | |||||
WSNI | Keene, NH | N/A | N/A | Adult Contemporary | Women 35-54 | |||||
WINQ | Keene, NH | N/A | N/A | Country | Adults 25-54 | |||||
WKNE-HD2 | Keene, NH | N/A | N/A | Classic Rock | Men 25-54 | |||||
WKNE-HD3 | Keene, NH | N/A | N/A | Classic Hits/Oldies | Adults 45-64 | |||||
WQEL | Bucyrus, OH | N/A | N/A | Classic Hits | Adults 25-54 | |||||
WIII | Ithaca, NY | N/A | N/A | Classic Rock | Men 25-54 | |||||
WQNY | Ithaca, NY | N/A | N/A | Country | Adults 25-54 | |||||
WYXL | Ithaca, NY | N/A | N/A | Adult Contemporary | Women 25-54 | |||||
WYXL-HD2 | Ithaca, NY | N/A | N/A | Adult Album Alternative | Adults 35-54 | |||||
WYXL-HD3 | Ithaca, NY | N/A | N/A | Sports | Men 25-54 | |||||
WQNY-HD2 | Ithaca, NY | N/A | N/A | Progressive Talk | Adults 35+ | |||||
WQNY-HD3 | Ithaca, NY | N/A | N/A | News Talk | Adults 35+ | |||||
WFIZ-FM | Ithaca, NY | N/A | N/A | Contemporary Hits | Adults 18-34 | |||||
WFIZ-HD2 | Ithaca, NY | N/A | N/A | Classic Hits/Oldies | Adults 35+ |
2012 | 2012 | ||||||||||
Market | Market | ||||||||||
Ranking | Ranking | ||||||||||
By Radio | By Radio | Target | |||||||||
Station | Market (a) | Revenue (b) | Market (b) | Station Format | Demographics | ||||||
AM: | |||||||||||
WJYI | Milwaukee, WI | 29 | 38 | Christian | Adults 18+ | ||||||
WJOI | Norfolk, VA | 40 | 44 | Adult Standards | Adults 45+ | ||||||
KRNT | Des Moines, IA | 68 | 73 | Adult Standards/Sports | Adults 45+ | ||||||
KPSZ | Des Moines, IA | 68 | 73 | Christian | Adults 18+ | ||||||
WGAN | Portland, ME | 78 | 90 | News/Talk | Adults 35+ | ||||||
WZAN | Portland, ME | 78 | 90 | News/Talk/Sports | Men 25-54 | ||||||
WBAE | Portland, ME | 78 | 90 | News/Talk/Sports | Adults 45+ | ||||||
WGIN | Portland, ME | 78 | 90 | News/Talk/Sports | Adults 45+ | ||||||
WHMP | Northampton, MA | N/A | N/A | News/Talk | Adults 35+ | ||||||
WHNP | Springfield, MA | 106 | 91 | News/Talk | Adults 35+ | ||||||
WHMQ | Greenfield, MA | N/A | N/A | News/Talk | Adults 35+ | ||||||
WFEA | Manchester, NH | 117 | 196 | Adult Standards | Adults 45+ | ||||||
WTAX | Springfield, IL | N/A | N/A | News/Talk | Adults 35+ | ||||||
WISE | Asheville, NC | 153 | 159 | Sports/Talk | Men 18+ | ||||||
WYSE | Asheville, NC | 153 | 159 | Sports/Talk | Men 18+ | ||||||
WNAX | Yankton, SD | 194 | 264 | News/Talk | Adults 35+ | ||||||
WINA | Charlottesville, VA | N/A | N/A | News/Talk | Adults 35+ | ||||||
WVAX | Charlottesville, VA | N/A | N/A | Sports Talk | Men 18+ | ||||||
WEGI | Clarksville, TN — Hopkinsville, KY | N/A | N/A | Classic Hits | Adults 35-54 | ||||||
WKFN | Clarksville, TN — Hopkinsville, KY | N/A | N/A | Sports/Talk | Men 18+ | ||||||
KGMI | Bellingham, WA | N/A | N/A | News/Talk | Adults 35+ | ||||||
KPUG | Bellingham, WA | N/A | N/A | Sports/Talk | Men 18+ | ||||||
KBAI | Bellingham, WA | N/A | N/A | Progressive Talk | Adults 35+ | ||||||
KICD | Spencer, IA | N/A | N/A | News/Talk | Adults 35+ | ||||||
WKVT | Brattleboro, VT | N/A | N/A | News/Talk | Adults 35+ | ||||||
WKBK | Keene, NH | N/A | N/A | News/Talk | Adults 35+ | ||||||
WZBK | Keene, NH | N/A | N/A | Sports Talk | Men 18+ | ||||||
WBCO | Bucyrus, OH | N/A | N/A | Adult Standards | Adults 45+ | ||||||
WNYY | Ithaca, NY | N/A | N/A | Progressive Talk | Adults 35+ | ||||||
WHCU | Ithaca, NY | N/A | N/A | News/Talk | Adults 35+ |
5 | ||
2013 | 2013 | ||||||||||
Market | Market | ||||||||||
Ranking | Ranking | ||||||||||
By Radio | By Radio | Target | |||||||||
Station | Market (a) | Revenue (b) | Market (b) | Station Format | Demographics | ||||||
AM: | |||||||||||
WJYI | Milwaukee, WI | 30 | 38 | Christian | Adults 18+ | ||||||
WJOI | Norfolk, VA | 40 | 44 | Adult Standards | Adults 45+ | ||||||
KRNT | Des Moines, IA | 69 | 74 | Adult Standards/Sports | Adults 45+ | ||||||
KPSZ | Des Moines, IA | 69 | 74 | Christian | Adults 18+ | ||||||
WGAN | Portland, ME | 77 | 90 | News/Talk | Adults 35+ | ||||||
WZAN | Portland, ME | 77 | 90 | News/Talk/Sports | Men 25-54 | ||||||
WBAE | Portland, ME | 77 | 90 | News/Talk/Sports | Adults 45+ | ||||||
WGIN | Portland, ME | 77 | 90 | News/Talk/Sports | Adults 45+ | ||||||
WHMP | Northampton, MA | N/A | N/A | News/Talk | Adults 35+ | ||||||
WHNP | Springfield, MA | 98 | 92 | News/Talk | Adults 35+ | ||||||
WHMQ | Greenfield, MA | N/A | N/A | News/Talk | Adults 35+ | ||||||
WFEA | Manchester, NH | 115 | 196 | Adult Standards | Adults 45+ | ||||||
WTAX | Springfield, IL | N/A | N/A | News/Talk | Adults 35+ | ||||||
WISE | Asheville, NC | 149 | 159 | Sports/Talk | Men 18+ | ||||||
WYSE | Asheville, NC | 149 | 159 | Sports/Talk | Men 18+ | ||||||
WNAX | Yankton, SD | 192 | 261 | News/Talk | Adults 35+ | ||||||
WINA | Charlottesville, VA | N/A | N/A | News/Talk | Adults 35+ | ||||||
WVAX | Charlottesville, VA | N/A | N/A | Sports Talk | Men 18+ | ||||||
WEGI | Clarksville, TN — Hopkinsville, KY | N/A | N/A | Classic Hits | Adults 35-54 | ||||||
WKFN | Clarksville, TN — Hopkinsville, KY | N/A | N/A | Sports/Talk | Men 18+ | ||||||
KGMI | Bellingham, WA | N/A | N/A | News/Talk | Adults 35+ | ||||||
KPUG | Bellingham, WA | N/A | N/A | Sports/Talk | Men 18+ | ||||||
KBAI | Bellingham, WA | N/A | N/A | Progressive Talk | Adults 35+ | ||||||
KICD | Spencer, IA | N/A | N/A | News/Talk | Adults 35+ | ||||||
WKVT | Brattleboro, VT | N/A | N/A | News/Talk | Adults 35+ | ||||||
WKBK | Keene, NH | N/A | N/A | News/Talk | Adults 35+ | ||||||
WZBK | Keene, NH | N/A | N/A | Sports Talk | Men 18+ | ||||||
WBCO | Bucyrus, OH | N/A | N/A | Adult Standards | Adults 45+ | ||||||
WNYY | Ithaca, NY | N/A | N/A | Progressive Talk | Adults 35+ | ||||||
WHCU | Ithaca, NY | N/A | N/A | News/Talk | Adults 35+ |
(a) | Actual city of license may differ from metropolitan market actually served. | |
(b) | Derived from Investing in Radio 2013 Market Report. |
6 | ||
2013 Market | |||||||||
Ranking by | Fall 2013 | ||||||||
Number of TV | Station | Station Ranking | |||||||
Station | Market (a) | Households (b) | Affiliate | (by # of viewers) (b) | |||||
KOAM-TV | Joplin, MO — Pittsburg, KS | 150 | CBS | 1 | |||||
KFJX(d) | Joplin, MO — Pittsburg, KS | 150 | FOX | 3 | |||||
KAVU-TV | Victoria, TX | 203 | ABC | N/S | |||||
KVCT(c) | Victoria, TX | 203 | FOX | N/S | |||||
KMOL-LD | Victoria, TX | 203 | NBC | N/S | |||||
KXTS-LD | Victoria, TX | 203 | CBS | N/S | |||||
KUNU-LD | Victoria, TX | 203 | Univision | N/S | |||||
KVTX-LP | Victoria, TX | 203 | Telemundo | N/S |
(a) | Actual city of license may differ from metropolitan market actually served. | |
(b) |
The following table sets forth information about the television stations that we own or operate and the markets they serve as of February 28, 2013:
2012 Market | |||||||||||
Ranking by | Fall 2012 | ||||||||||
Number of TV | Station | Station Ranking | |||||||||
Station | Market (a) | �� | Households (b) | Affiliate | (by # of viewers) (b) | ||||||
KOAM-TV | Joplin, MO — Pittsburg, KS | 149 | CBS | 1 | |||||||
KFJX(d) | Joplin, MO — Pittsburg, KS | 149 | FOX | 2 | |||||||
KAVU-TV | Victoria, TX | 204 | ABC | N/S | |||||||
KVCT(c) | Victoria, TX | 204 | FOX | N/S | |||||||
KMOL-LD | Victoria, TX | 204 | NBC | N/S | |||||||
KXTS-LD | Victoria, TX | 204 | CBS | N/S | |||||||
KUNU-LD | Victoria, TX | 204 | Univision | N/S | |||||||
KVTX-LP | Victoria, TX | 204 | Telemundo | N/S |
Derived from Fall | ||
(c) | Station operated under the terms of a | |
(d) | Station operated under the terms of a Shared Services Agreement. | |
N/S | Station is a non-subscriber to the A.C Nielsen ratings and data. |
7 | ||
8 | ||
9 | ||
Power | Expiration Date of | ||||||
Station | Market (1) | (Watts) (2) | FCC Authorization | ||||
FM: | |||||||
WSNY | Columbus, OH | 50,000 | October 1, 2020 | ||||
WNNP | Columbus, OH | 6,000 | October 1, 2020 | ||||
WNND | Columbus, OH | 6,000 | October 1, 2020 | ||||
WVMX | Columbus, OH | 6,000 | October 1, 2020 | ||||
WQEL | Bucyrus, OH | 3,000 | October 1, 2020 | ||||
WKLH | Milwaukee, WI | 50,000 | December 1, 2020 | ||||
WHQG | Milwaukee, WI | 50,000 | December 1, 2020 | ||||
WNRG | Milwaukee, WI | 6,000 | December 1, 2020 | ||||
WJMR | Milwaukee, WI | 6,000 | December 1, 2012(6) | ||||
WNOR | Norfolk, VA | 50,000 | October 1, 2011(6) | ||||
WAFX | Norfolk, VA | 100,000 | October 1, | ||||
KSTZ | Des Moines, IA | 100,000 | February 1, 2021 | ||||
KIOA | Des Moines, IA | 100,000 | February 1, 2021 | ||||
KAZR | Des Moines, IA | 100,000 | February 1, 2021 | ||||
Des Moines, IA | 100,000 | February 1, 2021 | |||||
WMGX | Portland, ME | 50,000 | April 1, | ||||
WYNZ | Portland, ME | 25,000 | April 1, |
10 | ||
Power | Expiration Date of | ||||||
Station | Market (1) | (Watts) (2) | FCC Authorization | ||||
WPOR | Portland, ME | 50,000 | April 1, | ||||
WCLZ | Portland, ME | 50,000 | April 1, | ||||
WLZX | Springfield, MA | 6,000 | April 1, | ||||
WAQY | Springfield, MA | 50,000 | April 1, 2006(6) | ||||
WZID | Manchester, NH | 50,000 | April 1, | ||||
WMLL | Manchester, NH | 6,000 | April 1, | ||||
WYMG | Springfield, IL | 50,000 | December 1, 2020 | ||||
Springfield, IL | 50,000 | December 1, 2020 | |||||
WDBR | Springfield, IL | 50,000 | December 1, 2012(6) | ||||
Springfield, IL | 25,000 | December 1, 2020 | |||||
WLRW | Champaign, IL | 50,000 | December 1, 2020 | ||||
WIXY | Champaign, IL | 25,000 | December 1, 2020 | ||||
WCFF | Champaign, IL | 25,000 | December 1, 2020 | ||||
WYXY | Champaign, IL | 50,000 | December 1, 2020 | ||||
WNAX | Yankton, SD | 100,000 | April 1, | ||||
KISM | Bellingham, WA | 100,000 | February 1, | ||||
KAFE | Bellingham, WA | 100,000 | February 1, | ||||
KICD | Spencer, IA | 100,000 | February 1, 2021 | ||||
KLLT | Spencer, IA | 25,000 | February 1, 2021 | ||||
WCVQ | Clarksville, TN/Hopkinsville, KY | 100,000 | August 1, 2020 | ||||
WZZP | Clarksville, TN/Hopkinsville, KY | 6,000 | August 1, 2020 | ||||
WVVR | Clarksville, TN/Hopkinsville, KY | 100,000 | August 1, 2020 | ||||
WEGI | Clarksville, TN/Hopkinsville, KY | 6,000 | August 1, 2020 | ||||
KMIT | Mitchell, SD | 100,000 | April 1, | ||||
KUQL | Mitchell, SD | 100,000 | April 1, | ||||
WHAI | Greenfield, MA | 3,000 | April 1, | ||||
WKNE | Keene, NH | 50,000 | April 1, | ||||
WRSI | Northampton, MA | 3,000 | April 1, | ||||
WRSY | Brattleboro, VT | 3,000 | April 1, | ||||
WPVQ | Greenfield, MA | 3,000 | April 1, | ||||
WKVT | Brattleboro, VT | 6,000 | April 1, | ||||
WSNI | Keene, NH | 6,000 | April 1, | ||||
WINQ | Keene, NH | 6,000 | April 1, | ||||
WOXL | Asheville, NC | 25,000 | December 1, 2019 | ||||
WTMT | Asheville, NC | 50,000 | December 1, 2011(6) | ||||
KEGI | Jonesboro, AR | 50,000 | June 1, 2020 | ||||
KDXY | Jonesboro, AR | 25,000 | June 1, 2020 | ||||
KJBX | Jonesboro, AR | 6,000 | June 1, 2020 | ||||
WWWV | Charlottesville, VA | 50,000 | October 1, 2019 | ||||
WQMZ | Charlottesville, VA | 6,000 | October 1, 2019 | ||||
WCNR | Charlottesville, VA | 6,000 | October 1, 2019 | ||||
WYXL | Ithaca, NY | 50,000 | June 1, | ||||
WQNY | Ithaca, NY | 50,000 | June 1, | ||||
WIII | Ithaca, NY | 50,000 | June 1, |
11 | ||
Power | Expiration Date of | ||||||
Station | Market (1) | (Watts) (2) | FCC Authorization | ||||
AM: | |||||||
|
|
| |||||
WJYI | Milwaukee, WI | 1,000 | December 1, 2020 | ||||
WJOI | Norfolk, VA | 1,000 | October 1, | ||||
KRNT | Des Moines, IA | 5,000 | February 1, 2013(6) | ||||
KPSZ | Des Moines, IA | 10,000 | February 1, 2021 | ||||
WGAN | Portland, ME | 5,000 | April 1, | ||||
WZAN | Portland, ME | 5,000 | April 1, | ||||
WBAE | Portland, ME | 1,000 | April 1, | ||||
WGIN | Portland, ME | 1,000 | April 1, | ||||
WHNP | Springfield, MA | 2,500(5) | April 1, | ||||
WHMP | Northampton, MA | 1,000 | April 1, | ||||
WFEA | Manchester, NH | 5,000 | April 1, | ||||
WTAX | Springfield, IL | 1,000 | December 1, 2012(6) | ||||
WNAX | Yankton, SD | 5,000 | April 1, | ||||
KGMI | Bellingham, WA | 5,000 | February 1, | ||||
KPUG | Bellingham, WA | 10,000 | February 1, | ||||
KBAI | Bellingham, WA | 1,000(5) | February 1, | ||||
KICD | Spencer, IA | 1,000 | February 1, 2021 | ||||
WEGI | Clarksville, TN/Hopkinsville, KY | 1,000(5) | August 1, 2020 | ||||
WKFN | Clarksville, TN | 1,000(5) | August 1, 2020 | ||||
WHMQ | Greenfield, MA | 1,000 | April 1, | ||||
WKBK | Keene, NH | 5,000 | April 1, | ||||
WZBK | Keene, NH | 1,000(5) | April 1, | ||||
WKVT | Brattleboro, VT | 1,000 | April 1, | ||||
WISE | Asheville, NC | 5,000(5) | December 1, 2019 | ||||
WYSE | Asheville, NC | 5,000(5) | December 1, 2019 | ||||
WBCO | Bucyrus, OH | 5,000(5) | October 1, 2020 | ||||
WINA | Charlottesville, VA | 5,000 | October 1, | ||||
WVAX | Charlottesville, VA | 1,000 | October 1, 2019 | ||||
WHCU | Ithaca, NY | 5,000(5) | June 1, | ||||
WNYY | Ithaca, NY | 5,000(5) | June 1, | ||||
TV/Channel: | |||||||
KOAM (DTV Ch 7) | Joplin, MO/Pittsburg, KS | DTV 14,800 | June 1, 2006(6) | ||||
KAVU (DTV Ch 15) | Victoria, TX | DTV 900,000 | August 1, 2006(6) | ||||
KVCT(3) (DTV Ch 11) | Victoria, TX | DTV 11,350 | August 1, 2006(6) | ||||
KUNU-LD(4) (Digital Ch 28) | Victoria, TX | DTV 15,000 | August 1, 2006(6) | ||||
KVTX-LP(4) (Operating on | Victoria, TX | Analog 1,000 | August 1, 2006(6) | ||||
KXTS-LD(4) (Digital Ch 19) | Victoria, TX | DTV 15,000 | August 1, 2006(6) | ||||
KMOL-LD(4) (Digital Ch 17) | Victoria, TX | DTV 15,000 | August 1, 2006(6) |
(1) | Some stations are licensed to a different community located within the market that they serve. | |
(2) | Some stations are licensed to operate with a combination of effective radiated power (“ERP”) and antenna height, which may be different from, but provide equivalent coverage to, the power shown. The ERP of our television stations is expressed in terms of visual (“vis”) components. WYSE, WISE, KPSZ, KPUG, KGMI, KBAI, WZBK, WBCO, WEGI, WKFN, WNYY and WHCU operate with lower power at night than the power shown. |
12 | ||
(3) | We program this station pursuant to a TBA with the licensee of KVCT, Surtsey Media, LLC (“Surtsey”). See Note 9 of the Notes to Consolidated Financial Statements included with this Form 10-K for additional information on our relationship with Surtsey. | |
(4) | KUNU-LD, KXTS-LD, KVTX-LP, and KMOL-LD are “low power” television stations that operate as “secondary” stations (i.e., if they conflict with the operations of a “full power” television station, the low power stations must change their facilities or terminate operations). | |
(5) | Operates daytime only or with greatly reduced power at night. | |
(6) | An application for renewal of license is pending before the FCC. |
Ownership Matters. The Communications Act prohibits the assignment of a broadcast license or the transfer of control of a broadcast licensee without the prior approval of the FCC. In determining whether to grant or renew a broadcast license, the FCC considers a number of factors pertaining to the licensee, including compliance with the Communications Act’s limitations on alien ownership; compliance with various rules limiting common ownership of broadcast, cable and newspaper properties; and the “character” and other qualifications of the licensee and those persons holding “attributable or cognizable” interests therein.
13 | ||
• | In markets with three or fewer TV stations, no cross-ownership is permitted among TV, radio and newspapers. A company may obtain a waiver of that ban if it can show that the television station does not serve the area served by the cross-owned property (i.e., the radio station or the newspaper). | ||
• | In markets with between 4 and 8 TV stations, combinations are limited to one of the following: |
(A) | A daily newspaper; one TV station; and up to half of the radio station limit for that market (i.e., if the radio limit in the market is 6, the company can only own 3) or |
(B) | A daily newspaper; and up to the radio station limit for that market; (i.e., no TV stations) or | ||
(C) | Two TV stations (if permissible under local TV ownership rule); and up to the radio station limit for that market (i.e., no daily newspapers). |
• | In markets with nine or more TV stations, the FCC eliminated the newspaper-broadcast cross-ownership ban and the television-radio cross-ownership ban. |
14 | ||
· | Local Television Ownership Rule. The FCC tentatively concluded that it should retain the current local television ownership rule with minor modifications (eliminate the Grade B contour overlap provision of the current rule). The FCC tentatively concluded that it should retain the prohibition against mergers among the top-four-rated stations, the eight-voices test, and the existing numerical limits. In addition, the FCC sought comment on whether to adopt a waiver standard applicable to small markets, as well as appropriate criteria for any such standard. The FCC sought comment on whether multicasting should be a factor in determining the television ownership limits. |
· | Local Radio Ownership Rule. The FCC proposed to retain the current local radio ownership rule; however, the FCC is seeking comment on modifications to the rule and whether and how the rule should account for other audio platforms. The FCC proposed to also retain the AM/FM subcaps (limitations on how many AM and FM stations may be owned in a market), and sought comment on the impact of the introduction of digital radio. The FCC also sought comment on whether to adopt a waiver standard and on specific criteria to adopt. |
· | Newspaper/Broadcast Cross-Ownership Rule. The FCC tentatively concluded that some newspaper/broadcast cross-ownership restrictions continue to be necessary to protect and promote viewpoint diversity, and proposed to use DMA definitions to determine that relevant market area for television stations. The FCC proposed to adopt a rule that includes elements of the 2006 rule, including the top 20 DMA demarcation point, the top-four television station restrictions, and the eight remaining voices test. |
· | Dual Network Rule. The FCC tentatively concluded that the dual network rule remains necessary in the public interest to promote competition and localism and should be retained without modification. |
Number of Stations | ||
In Radio Market | Number of Stations We Can Own | |
14 or Fewer | Total of 5 stations, not more than 3 in the same service (AM or FM), except the Company cannot own more than 50% of the stations in the market. | |
15-29 | Total of 6 stations, not more than 4 in the same service (AM or FM). | |
30-44 | Total of 7 stations, not more than 4 in the same service (AM or FM). | |
45 or More | Total of 8 stations, not more than 5 in the same service (AM or FM). |
15 | ||
16 | ||
Equal Employment Opportunity Rules. Equal employment opportunity (EEO) rules and policies for broadcasters prohibit discrimination by broadcasters and multichannel video programming distributors (“MVPDs”). They also require broadcasters to provide notice of job vacancies and to undertake additional outreach measures, such as job fairs and scholarship programs. The rules mandate a “three prong” outreach program; i.e., Prong 1: widely disseminate information concerning each full-time (30 hours or more) job vacancy, except for vacancies filled in exigent circumstances; Prong 2: provide notice of each full-time job vacancy to recruitment organizations that have requested such notice; and Prong 3: complete two (for broadcast employment units with five to ten full-time employees or that are located in smaller markets) or four (for employment units with more than ten full-time employees located in larger markets) longer-term recruitment initiatives within a two-year period. These include, for example, job fairs, scholarship and internship programs, and other community events designed to inform the public as to employment opportunities in broadcasting. The rules mandate extensive record keeping and reporting requirements. The EEO rules are enforced through review at renewal time, at mid-term for larger broadcasters, and through random audits and targeted investigations resulting from information received as to possible violations. The FCC has not yet decided on whether and how to apply the EEO rule to part-time positions. Failure to observe these or other rules and policies can result in the imposition of various sanctions, including monetary forfeitures, the grant of “short” (less than the full eight-year) renewal terms or, for particularly egregious violations, the denial of a license renewal application or the revocation of a license.
17 | ||
18 | ||
“Must-Carry” Rules. The Cable Television Consumer Protection and Competition Act of 1992, among other matters, requires cable television system operators to carry the signals of local commercial and non-commercial television stations and certain low power television stations. Cable television operators and other MVPDs may not carry broadcast signals without, in certain circumstances, obtaining the transmitting station’s consent. A local television broadcaster must make a choice every three years whether to proceed under the “must-carry” rules or waive the right to mandatory-uncompensated coverage and negotiate a grant of retransmission consent in exchange for consideration from the MVPD. Such must-carry rights extend to the DTV signals broadcast by our stations. For the three-year period commencing on January 1, 2012, we generally elected “retransmission consent” in notifying MVPDs that carry our television programming in our television markets.
19 | ||
20 | ||
In-Band On-Channel “Hybrid Digital” Radio. On May 31, 2007, the The FCC released its Second Report and Order, First Order on Reconsideration and Second Further Notice of Proposed Rulemaking (Digital Audio Broadcasting Systems) thathas adopted rules permitting radio stations to broadcast using in-band, on-channel (IBOC) as the technology that allows AM and FM stations to operate using the IBOC systems developed by iBiquity Digital Corporation. This technology has become commonly known as “hybrid digital” or HD radio. Stations broadcast the same main channel program material in both analog and digital modes. IBOCHD radio technology permits “hybrid” operations, the simultaneous transmission of analog and digital signals with a single AM and FM channel. IBOCHD radio technology can provide near CD-quality sound on FM channels and FM quality on AM channels. Hybrid IBOCHD radio technology also permits the transmission of up to three additional program streams over the radio stations. Hybrid IBOC operations will have minimal impact on the present broadcast service. At the present time, we are configured to broadcast in HD radio on 4751 stations and we continue to convert stations to HD radio on an ongoing basis. On January 29, 2010, the FCC adopted an Order that permits FM radio stations to voluntarily increase digital power levels up to ten percent of analog power levels and establishes interference mitigation and remediation procedures to promptly resolve complaints of interference to analog stations. The Commission hopes the changes will boost digital signal coverage while safeguarding analog reception against interference from higher power digital transmissions.
21 | ||
· | While stations will need to retain at least one standard definition programming stream to meet the FCC’s requirement of providing an over-the-air video broadcast at no direct charge to viewers, they will have the flexibility of tailoring their channel sharing agreements to meet their individual programming and economic needs. | |
· | Stations sharing together will employ a single channel and transmission facility but will each continue to be licensed separately, retain its original call sign, retain all the rights pertaining to an FCC license, and remain subject to all of the FCC’s rules, policies, and obligations. |
22 | ||
23 | ||
Name | Age | Position | |||
�� | |||||
Edward K. Christian | President, Chief Executive Officer and Chairman; Director | ||||
Steven J. Goldstein | Executive Vice President and Group Program Director | ||||
Warren S. Lada | Executive Vice President, Operations | ||||
Samuel D. Bush | Senior Vice President, Treasurer and Chief Financial Officer | ||||
Marcia K. Lobaito | Senior Vice President, Corporate Secretary, and Director of Business Affairs | ||||
Catherine A. Bobinski | Senior Vice President/Finance, Chief Accounting Officer and Corporate Controller |
24 | ||
We Have Substantial Indebtedness and Debt Service Requirements
25 | ||
Local and National Economic Conditions May Affect our Advertising Revenue
26 | ||
Future Impairment of our FCC Broadcasting Licenses Could Affect our Operating Results
27 | ||
New Technologies May Affect our Broadcasting Operations
28 | ||
Year | High | Low | ||||||
2011: | ||||||||
First Quarter | $ | 26.10 | $ | 18.03 | ||||
Second Quarter | $ | 30.34 | $ | 23.25 | ||||
Third Quarter | $ | 29.70 | $ | 20.14 | ||||
Fourth Quarter | $ | 30.06 | $ | 19.99 | ||||
2012: | ||||||||
First Quarter | $ | 35.99 | $ | 26.44 | ||||
Second Quarter | $ | 28.92 | $ | 25.55 | ||||
Third Quarter | $ | 32.11 | $ | 25.31 | ||||
Fourth Quarter | $ | 38.33 | $ | 27.64 |
Year | High | Low | |||||
2012: | |||||||
First Quarter | $ | 35.99 | $ | 26.44 | |||
Second Quarter | $ | 28.92 | $ | 25.55 | |||
Third Quarter | $ | 32.11 | $ | 25.31 | |||
Fourth Quarter | $ | 38.33 | $ | 27.64 | |||
2013: | |||||||
First Quarter | $ | 51.61 | $ | 33.23 | |||
Second Quarter | $ | 49.86 | $ | 39.64 | |||
Third Quarter | $ | 51.99 | $ | 43.48 | |||
Fourth Quarter | $ | 54.00 | $ | 43.48 |
29 | ||
(a) | (b) | (c) | ||||||||||
Number of Securities | ||||||||||||
Number of Shares to | Weighted- | Remaining Available for | ||||||||||
be Issued Upon | Average Exercise | Future Issuance | ||||||||||
Exercise of | Price of | Under Equity | ||||||||||
Outstanding Options | Outstanding Options, | Compensation Plans | ||||||||||
Plan Category | Warrants, and Rights | Warrants and Rights | (Excluding Column (a)) | |||||||||
Equity Compensation Plans Approved by Stockholders: | ||||||||||||
Employees’ 401(k) Savings and Investment Plan | — | $ | — | 437,843 | ||||||||
2003 Stock Option Plan | 28,917 | $ | 57.787 | — | ||||||||
2005 Incentive Compensation Plan | 237,300 | (1) | $ | 31.805 | (2) | 496,145 | ||||||
Equity Compensation Plans Not Approved by Stockholders: | ||||||||||||
None | — | — | ||||||||||
Total | 266,217 | 933,988 |
plans:
(a) | (b) | (c) | ||||||
Number of Securities | ||||||||
Number of Shares to | Remaining Available for | |||||||
be Issued Upon | Weighted-Average | Future Issuance | ||||||
Exercise of | Exercise Price of | Under Equity | ||||||
Outstanding Options | Outstanding Options, | Compensation Plans | ||||||
Plan Category | Warrants, and Rights | Warrants and Rights | (Excluding Column (a)) | |||||
Equity Compensation Plans Approved by Stockholders: | ||||||||
Employees’ 401(k) Savings and Investment Plan | — | $ | — | 432,773 | ||||
2003 Stock Option Plan | 13,323 | $ | 57.93 | — | ||||
2005 Incentive Compensation Plan | 270,526 | (1) | $ | 31.893 | (2) | 515,182 | ||
Equity Compensation Plans Not Approved by Stockholders: | ||||||||
None | — | — | ||||||
Total | 283,849 | 947,955 |
(1) | Includes 50,062 shares of restricted stock. | |
(2) | Weighted-Average Exercise Price of Outstanding Options. |
(2)Weighted-Average Exercise Price of Outstanding Options.
Recent Sales of Unregistered Securities
30 | ||
Legend
Symbol | CRSP Total Returns Index for: | 12/07 | 12/08 | 12/09 | 12/10 | 12/11 | 12/12 | |||||||||||||||||||
Saga Communications, Inc. | 100.0 | 28.0 | 53.2 | 110.4 | 158.7 | 204.6 | ||||||||||||||||||||
NYSE MKT Stock Market (US Companies) | 100.0 | 63.7 | 78.0 | 99.2 | 90.4 | 99.04 | ||||||||||||||||||||
Self-Determined Peer Group | 100.0 | 26.6 | 53.0 | 85.7 | 96.9 | 139.41 |
Legend | |||||||||||||||||
Symbol | CRSP Total Returns Index for: | 12/08 | 12/09 | 12/10 | 12/11 | 12/12 | 12/13 | ||||||||||
Saga Communications, Inc. | 100.0 | 190.1 | 393.9 | 566.5 | 733.3 | 1,094.4 | |||||||||||
NYSE MKT Stock Market (US Companies) | 100.0 | 122.3 | 155.5 | 141.8 | 155.4 | 170.4 | |||||||||||
Self-Determined Peer Group | 100.0 | 203.1 | 327.4 | 376.4 | 499.2 | 766.5 |
31 | ||
Years Ended December 31, | ||||||||||||||||||||
2012(1)(2) | 2011(1)(2) | 2010(1)(2) | 2009(1)(2) | 2008(1)(2) | ||||||||||||||||
(In thousands except per share amounts) | ||||||||||||||||||||
OPERATING DATA: | ||||||||||||||||||||
Net Operating Revenue | $ | 130,259 | $ | 125,273 | $ | 125,833 | $ | 118,899 | $ | 137,482 | ||||||||||
Station Operating Expense | 90,288 | 90,929 | 90,335 | 92,079 | 103,143 | |||||||||||||||
Corporate General and Administrative | 7,960 | 7,590 | 7,274 | 7,944 | 9,979 | |||||||||||||||
Gain on Asset Exchange | — | — | — | (495 | ) | (224 | ) | |||||||||||||
Impairment of Intangible Assets | — | — | — | 17,153 | 115,150 | |||||||||||||||
Operating Income (Loss) From Continuing Operations | $ | 32,011 | $ | 26,754 | $ | 28,224 | $ | 2,218 | $ | (90,566 | ) | |||||||||
Interest Expense | $ | 1,733 | $ | 3,420 | $ | 5,622 | $ | 4,948 | $ | 7,173 | ||||||||||
Net Income (Loss): | ||||||||||||||||||||
From Continuing Operations | $ | 18,060 | $ | 12,885 | $ | 15,464 | $ | (2,031 | ) | $ | (65,688 | ) | ||||||||
From Discontinued Operations | (135 | ) | (254 | ) | (328 | ) | (550 | ) | (804 | ) | ||||||||||
Net Income (Loss) | $ | 17,925 | $ | 12,631 | $ | 15,136 | $ | (2,581 | ) | $ | (66,492 | ) | ||||||||
Basic Earnings (Loss) Per Share: | ||||||||||||||||||||
From Continuing Operations | $ | 3.19 | $ | 2.28 | $ | 2.74 | $ | (0.36 | ) | $ | (10.40 | ) | ||||||||
From Discontinued Operations | (0.02 | ) | (0.04 | ) | (0.06 | ) | (0.10 | ) | (0.13 | ) | ||||||||||
Earnings (Loss) Per Share | $ | 3.17 | $ | 2.24 | $ | 2.68 | $ | (0.46 | ) | $ | (10.53 | ) | ||||||||
Weighted Average Common Shares | 5,659 | 5,651 | 5,640 | 5,609 | 6,312 | |||||||||||||||
Diluted Earnings (Loss) Per Share: | ||||||||||||||||||||
From Continuing Operations | $ | 3.18 | $ | 2.28 | $ | 2.74 | $ | (0.36 | ) | $ | (10.40 | ) | ||||||||
From Discontinued Operations | (0.02 | ) | (0.05 | ) | (0.06 | ) | (0.10 | ) | (0.13 | ) | ||||||||||
Earnings (Loss) Per Share | $ | 3.16 | $ | 2.23 | $ | 2.68 | $ | (0.46 | ) | $ | (10.53 | ) | ||||||||
Weighted Average Common and Common Equivalent Shares | 5,672 | 5,656 | 5,641 | 5,609 | 6,312 | |||||||||||||||
Cash Dividends Declared Per Common Share | $ | 1.24 | — | — | — | — |
December 31, | ||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
BALANCE SHEET DATA: | ||||||||||||||||||||
Working Capital | $ | 27,066 | $ | 16,322 | $ | 18,130 | $ | 7,753 | $ | 19,377 | ||||||||||
Net Property and Equipment | $ | 58,462 | $ | 60,622 | $ | 62,753 | $ | 66,115 | $ | 70,158 | ||||||||||
Net Intangible and Other Assets | $ | 98,434 | $ | 98,752 | $ | 100,492 | $ | 99,342 | $ | 116,501 | ||||||||||
Total Assets | $ | 197,330 | $ | 190,334 | $ | 199,803 | $ | 202,351 | $ | 221,460 | ||||||||||
Long-term Debt Including Current Portion | $ | 58.828 | $ | 69,078 | $ | 96,078 | $ | 121,078 | $ | 135,411 | ||||||||||
Stockholders’ Equity | $ | 104,209 | $ | 92,975 | $ | 80,078 | $ | 64,093 | $ | 65,097 |
Years Ended December 31, | |||||||||||||||||
2013(1)(2) | 2012(1)(2) | 2011(1)(2) | 2010 (1)(2) | 2009(1)(2) | |||||||||||||
(In thousands except per share amounts) | |||||||||||||||||
OPERATING DATA: | |||||||||||||||||
Net Operating Revenue | $ | 129,478 | $ | 130,259 | $ | 125,273 | $ | 125,833 | $ | 118,899 | |||||||
Station Operating Expense | 92,977 | 90,288 | 90,929 | 90,335 | 92,079 | ||||||||||||
Corporate General and Administrative | 8,172 | 7,960 | 7,590 | 7,274 | 7,944 | ||||||||||||
Gain on Asset Exchange | — | — | — | — | (495) | ||||||||||||
Impairment of Intangible Assets | 2,033 | — | — | — | 17,153 | ||||||||||||
Operating Income (Loss) From Continuing Operations | $ | 26,296 | $ | 32,011 | $ | 26,754 | $ | 28,224 | $ | 2,218 | |||||||
Interest Expense | $ | 1,305 | $ | 1,733 | $ | 3,420 | $ | 5,622 | $ | 4,948 | |||||||
Net Income (Loss): | |||||||||||||||||
From Continuing Operations | $ | 15,050 | $ | 18,060 | $ | 12,885 | $ | 15,464 | $ | (2,031) | |||||||
From Discontinued Operations | 223 | (135) | (254) | (328) | (550) | ||||||||||||
Net Income (Loss) | $ | 15,273 | $ | 17,925 | $ | 12,631 | $ | 15,136 | $ | (2,581) | |||||||
Basic Earnings (Loss) Per Share: | |||||||||||||||||
From Continuing Operations | $ | 2.62 | $ | 3.19 | $ | 2.28 | $ | 2.74 | $ | (0.36) | |||||||
From Discontinued Operations | 0.04 | (0.02) | (0.04) | (0.06) | (0.10) | ||||||||||||
Earnings (Loss) Per Share | $ | 2.66 | $ | 3.17 | $ | 2.24 | $ | 2.68 | $ | (0.46) | |||||||
Weighted Average Common Shares | 5,681 | 5,659 | 5,651 | 5,640 | 5,609 | ||||||||||||
Diluted Earnings (Loss) Per Share: | |||||||||||||||||
From Continuing Operations | $ | 2.60 | $ | 3.18 | $ | 2.28 | $ | 2.74 | $ | (0.36) | |||||||
From Discontinued Operations | 0.04 | (0.02) | (0.05) | (0.06) | (0.10) | ||||||||||||
Earnings (Loss) Per Share | $ | 2.64 | $ | 3.16 | $ | 2.23 | $ | 2.68 | $ | (0.46) | |||||||
Weighted Average Common and Common Equivalent Shares | 5,745 | 5,672 | 5,656 | 5,641 | 5,609 | ||||||||||||
Cash Dividends Declared Per Common Share | $ | 1.80 | 1.24 | — | — | — |
December 31, | ||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||
(In thousands) | ||||||||||||||||
BALANCE SHEET DATA: | ||||||||||||||||
Working Capital | $ | 28,079 | $ | 27,066 | $ | 16,322 | $ | 18,130 | $ | 7,753 | ||||||
Net Property and Equipment | $ | 56,337 | $ | 58,462 | $ | 60,622 | $ | 62,753 | $ | 66,115 | ||||||
Net Intangible and Other Assets | $ | 94,806 | $ | 98,434 | $ | 98,752 | $ | 100,492 | $ | 99,342 | ||||||
Total Assets | $ | 193,224 | $ | 197,330 | $ | 190,334 | $ | 199,803 | $ | 202,351 | ||||||
Long-term Debt Including Current Portion | $ | 46,078 | $ | 58.828 | $ | 69,078 | $ | 96,078 | $ | 121,078 | ||||||
Stockholders’ Equity | $ | 109,701 | $ | 104,209 | $ | 92,975 | $ | 80,078 | $ | 64,093 |
(1) | In January 2013, the Company consummated a four-for-three stock split of its Class A and Class B Common Stock. All share and per share information prior to the split has been adjusted to reflect the retroactive equivalent change in the weighted average shares. |
(2) | In | |
General
We are a broadcast company primarily engaged in acquiring, developing and operating broadcast properties. We actively seek and explore opportunities for expansion through the acquisition of additional broadcast properties. We review acquisition opportunities on an ongoing basis.
Radio Segment
Our radio segment’s primary source of revenue is from the sale of advertising for broadcast on our stations. Depending on the format of a particular radio station, there are a predetermined number of advertisements available to be broadcast each hour.
Most advertising contracts are short-term and generally run for a few weeks only. The majority of our revenue is generated from local advertising, which is sold primarily by each radio markets’ sales staff. For the years ended December 31, 2012, 2011 and 2010, approximately 88%, 85% and 86%, respectively, of our radio segment’s gross revenue was from local advertising. To generate national advertising sales, we engage independent advertising sales representative firms that specialize in national sales for each of our broadcast markets.
Our revenue varies throughout the year. Advertising expenditures, our primary source of revenue, generally have been lowest during the winter months, which include the first quarter of each year. In 2012, we had a significant increase in political advertising due to both the presidential election and a number of congressional, senatorial, gubernatorial and local elections in most of our markets. Because 2013 is a non-election year, we expect political revenue to significantly decline in 2013.
Our net operating revenue, station operating expense and operating income vary from market to market based upon the market’s rank or size which is based upon population and the available radio advertising revenue in that particular market.
The broadcasting industry and advertising in general, is influenced by the state of the overall economy, including unemployment rates, inflation, energy prices and consumer interest rates. Our stations broadcast primarily in small to midsize markets. Historically, these markets have been more stable than major metropolitan markets during downturns in advertising spending, but may not experience increases in such spending as significant as those in major metropolitan markets in periods of economic improvement.
Our financial results are dependent on a number of factors, the most significant of which is our ability to generate advertising revenue through rates charged to advertisers. The rates a station is able to charge are, in large part, based on a station’s ability to attract audiences in the demographic groups targeted by its advertisers. In a number of our markets, this is measured by periodic reports generated by independent national rating services. In the remainder of our markets it is measured by the results advertisers obtain through the actual running of an advertising schedule. Advertisers measure these results based on increased demand for their goods or services and/or actual revenues generated from such demand. Various factors affect the rate a station can charge, including the general strength of the local and national economies, population growth, ability to provide popular programming, local market competition, target marketing capability of radio compared to other advertising media, and signal strength.
When we acquire and/or begin to operate a station or group of stations we generally increase programming and advertising and promotion expenses to increase our share of our target demographic audience. Our strategy sometimes requires levels of spending commensurate with the revenue levels we plan on achieving in two to five years. During periods of economic downturns, or when the level of advertising spending is flat or down across the industry, this strategy may result in the appearance that our cost of operations are increasing at a faster rate than our growth in revenues, until such time as we achieve our targeted levels of revenue for the acquired station or group of stations.
The number of advertisements that can be broadcast without jeopardizing listening levels (and the resulting ratings) is limited in part by the format of a particular radio station. Our stations strive to maximize revenue by constantly managing the number of commercials available for sale and by adjusting prices based upon local market conditions and ratings. While there may be shifts from time to time in the number of advertisements broadcast during a particular time of the day, the total number of advertisements broadcast on a particular station generally does not vary significantly from year to year. Any change in our revenue, with the exception of those instances where stations are acquired or sold, is generally the result of inventory sell out ratios and pricing adjustments, which are made to ensure that the station efficiently utilizes available inventory.
Our radio stations employ a variety of programming formats. We periodically perform market research, including music evaluations, focus groups and strategic vulnerability studies. Because reaching a large and demographically attractive audience is crucial to a station’s financial success, we endeavor to develop strong listener loyalty. Our stations also employ audience promotions to further develop and secure a loyal following. We believe that the diversification of formats on our radio stations helps to insulate us from the effects of changes in musical tastes of the public on any particular format.
The primary operating expenses involved in owning and operating radio stations are employee salaries, sales commissions, programming expenses, depreciation, and advertising and promotion expenses.
The radio broadcasting industry is subject to rapid technological change, evolving industry standards and the emergence of new media technologies and services. These new technologies and media are gaining advertising share against radio and other traditional media.
We are continuing to expand our digital initiative to provide a seamless experience across numerous platforms to allow our listeners and viewers to connect with our products where and when they want. Over the past year, we have embarked on a project to bring all of our websites in house while making them fully accessible on mobile devices. The net result will provide new avenues for revenue and improve our overall digital reach.
In addition, we continue the rollout of HD RadioTM. HD RadioTMutilizes digital technology that provides improved sound quality over standard analog broadcasts and also allows for the delivery of additional channels of diversified programming or data streams in each radio market.
During the years ended December 31, 2012, 2011 and 2010, our Columbus, Ohio; Des Moines, Iowa; Manchester, New Hampshire; and Milwaukee, Wisconsin markets, when combined, represented approximately 30% of our consolidated net operating revenue. An adverse change in any of these radio markets or relative market position in those markets could have a significant impact on our operating results as a whole.
The following tables describe the percentage of our consolidated net operating revenue represented by each of these markets:
Percentage of Consolidated | ||||||||||||
Net Operating Revenue | ||||||||||||
for the Years | ||||||||||||
Ended December 31, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
Market: | ||||||||||||
Columbus, Ohio | 7% | 6% | 5% | |||||||||
Des Moines, Iowa | 6% | 7% | 6% | |||||||||
Manchester, New Hampshire | 6% | 5% | 6% | |||||||||
Milwaukee, Wisconsin | 11% | 12% | 13% |
We have experienced a significant decline in our net operating revenue for the years ended December 31, 2011 and 2012 as compared to the corresponding period of 2010 in our Milwaukee, Wisconsin market. This decline in net operating revenue has directly affected the operating income of our radio stations in this market. These reductions are attributable to a combination of aggressive competitive pricing due to a soft economy and new ratings methodology that has changed the competitive pricing landscape in the market; an increase in the demand for 30 second spots that has caused a reduction in both our rates and inventory available as we control the number of units per hour to provide more entertainment for our listeners; and a decline in certain key category spending in the market.
33 | ||
34 | ||
Percentage of Consolidated | |||||||
Net Operating Revenue | |||||||
for the Years | |||||||
Ended December 31, | |||||||
2013 | 2012 | 2011 | |||||
Market: | |||||||
Columbus, Ohio | 7 | % | 7 | % | 6 | % | |
Des Moines, Iowa | 7 | % | 6 | % | 7 | % | |
Manchester, New Hampshire | 5 | % | 6 | % | 5 | % | |
Milwaukee, Wisconsin | 10 | % | 11 | % | 12 | % | |
Norfolk, Virginia | 5 | % | 5 | % | 4 | % |
Percentage of | ||||||||||||
Consolidated Station | ||||||||||||
Operating Income (*) | ||||||||||||
for the Years | ||||||||||||
Ended December 31, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
Market: | ||||||||||||
Columbus, Ohio | 8% | 6% | 3% | |||||||||
Des Moines, Iowa | 5% | 5% | 4% | |||||||||
Manchester, New Hampshire | 8% | 7% | 8% | |||||||||
Milwaukee, Wisconsin | 13% | 15% | 17% |
_______________
Percentage of | |||||||
Consolidated Station | |||||||
Operating Income (*) | |||||||
for the Years | |||||||
Ended December 31, | |||||||
2013 | 2012 | 2011 | |||||
Market: | |||||||
Columbus, Ohio | 8 | % | 8 | % | 6 | % | |
Des Moines, Iowa | 5 | % | 5 | % | 5 | % | |
Manchester, New Hampshire | 8 | % | 8 | % | 7 | % | |
Milwaukee, Wisconsin | 11 | % | 13 | % | 15 | % | |
Norfolk, Virginia | 7 | % | 6 | % | 3 | % |
(*) | Operating income plus corporate general and administrative expenses, depreciation and amortization. |
35 | ||
In 2009 we entered into retransmission consent agreements with certain cable and satellite providers as to the terms of their carriage of our television stations, and the compensation we would receive for granting such carriage rights. In 2011 we renegotiated new retransmission consent agreements with these and other providers that resulted in a significant increase in our retransmission consent revenue for fiscal 2012 -2014. We recognized revenue of $1.8 million in 2012 and, per the terms of our network affiliation agreements, we remitted $435,000 of this revenue to our network partners as their share of our retransmission consent revenue.
36 | ||
2011.
2012 vs. 2011 | 2011 vs. 2010 | |||||||||||||||||||||||||||
Years Ended December 31, | $ Increase | % Increase | $ Increase | % Increase | ||||||||||||||||||||||||
2012 | 2011 | 2010 | (Decrease) | (Decrease) | (Decrease) | (Decrease) | ||||||||||||||||||||||
(In thousands, except %’s and per share information) | ||||||||||||||||||||||||||||
Net operating revenue | $ | 130,259 | $ | 125,273 | $ | 125,833 | $ | 4,986 | 4.0% | $ | (560 | ) | (0.4)% | |||||||||||||||
Station operating expense | 90,288 | 90,929 | 90,335 | (641 | ) | (0.7)% | 594 | 0.7% | ||||||||||||||||||||
Corporate G&A | 7,960 | 7,590 | 7,274 | 370 | 4.9% | 316 | 4.3% | |||||||||||||||||||||
Operating income from continuing operations | 32,011 | 26,754 | 28,224 | 5,257 | 19.7% | (1,470 | ) | (5.2)% | ||||||||||||||||||||
Interest expense | 1,733 | 3,420 | 5,622 | (1,687 | ) | (49.3)% | (2,202 | ) | (39.2)% | |||||||||||||||||||
Write-off debt issuance costs | — | 1,326 | — | (1,326 | ) | N/M | 1,326 | N/M | ||||||||||||||||||||
Other (income) expense, net | 279 | 519 | (3,481 | ) | (240 | ) | (46.2)% | 4,000 | N/M | |||||||||||||||||||
Income from continuing operations before income tax | 29,999 | 21,489 | 26,083 | 8,510 | 39.6% | (4,594 | ) | (17.6)% | ||||||||||||||||||||
Income tax provision | 11,939 | 8,604 | 10,619 | 3,335 | 38.8% | (2,015 | ) | (19.0)% | ||||||||||||||||||||
Income from continuing operations, net of income tax | 18,060 | 12,885 | 15,464 | 5,175 | 40.2% | (2,579 | ) | (16.7)% | ||||||||||||||||||||
Loss from discontinued operations, net of income tax | (135 | ) | (254 | ) | (328 | ) | (119 | ) | (46.9)% | (74 | ) | (22.6)% | ||||||||||||||||
Net income | $ | 17,925 | $ | 12,631 | $ | 15,136 | $ | 5,294 | 41.9% | $ | (2,505 | ) | (16.5)% | |||||||||||||||
Earnings (loss) per share: | ||||||||||||||||||||||||||||
From continuing operations | $ | 3.18 | $ | 2.28 | $ | 2.74 | $ | 0.90 | 39.5% | $ | (0.46 | ) | (16.8)% | |||||||||||||||
From discontinued operations | (0.02 | ) | (0.05 | ) | (0.06 | ) | 0.03 | 60.0% | 0.01 | 16.7% | ||||||||||||||||||
Earnings per share (fully diluted) | $ | 3.16 | $ | 2.23 | $ | 2.68 | $ | 0.93 | 41.7% | $ | (0.45 | ) | (16.8)% |
2013 vs. 2012 | 2012 vs. 2011 | ||||||||||||||||||||
Years Ended December 31, | $ Increase | % Increase | $ Increase | % Increase | |||||||||||||||||
2013 | 2012 | 2011 | (Decrease) | (Decrease) | (Decrease) | (Decrease) | |||||||||||||||
(In thousands, except %’s and per share information) | |||||||||||||||||||||
Net operating revenue | $ | 129,478 | $ | 130,259 | $ | 125,273 | $ | (781) | (0.6) | % | $ | 4,986 | 4.0 | % | |||||||
Station operating expense | 92,977 | 90,288 | 90,929 | 2,689 | 3.0 | % | (641) | (0.7) | % | ||||||||||||
Corporate G&A | 8,172 | 7,960 | 7,590 | 212 | 2.7 | % | 370 | 4.9 | % | ||||||||||||
Impairment of intangible assets | 2,033 | — | — | 2,033 | N/M | — | — | % | |||||||||||||
Operating income from continuing operations | 26,296 | 32,011 | 26,754 | (5,715) | (17.9) | % | 5,257 | 19.7 | % | ||||||||||||
Interest expense | 1,305 | 1,733 | 3,420 | (428) | (24.7) | % | (1,687) | (49.3) | % | ||||||||||||
Write-off debt issuance costs | 55 | — | 1,326 | 55 | N/M | (1,326) | N/M | ||||||||||||||
Other (income) expense, net | (106) | 279 | 519 | (385) | N/M | (240) | (46.2) | % | |||||||||||||
Income from continuing operations before income tax | 25,042 | 29,999 | 21,489 | (4,957) | (16.5) | % | 8,510 | 39.6 | % | ||||||||||||
Income tax provision | 9,992 | 11,939 | 8,604 | (1,947) | (16.3) | % | 3,335 | 38.8 | % | ||||||||||||
Income from continuing operations, net of income tax | 15,050 | 18,060 | 12,885 | (3,010) | (16.7) | % | 5,175 | 40.2 | % | ||||||||||||
Income (loss) from discontinued operations, net of income tax | 223 | (135) | (254) | 358 | N/M | (119) | (46.9) | % | |||||||||||||
Net income | $ | 15,273 | $ | 17,925 | $ | 12,631 | $ | (2,652) | (14.8) | % | $ | 5,294 | 41.9 | % | |||||||
Earnings (loss) per share: | |||||||||||||||||||||
From continuing operations | $ | 2.60 | $ | 3.18 | $ | 2.28 | $ | (0.58) | (18.3) | % | $ | 0.90 | 39.5 | % | |||||||
From discontinued operations | 0.04 | (0.02) | (0.05) | 0.06 | N/M | 0.03 | 60.0 | % | |||||||||||||
Earnings per share (fully diluted) | $ | 2.64 | $ | 3.16 | $ | 2.23 | $ | (0.52) | (16.5) | % | $ | 0.93 | 41.7 | % |
2012 vs. 2011 | 2011 vs. 2010 | |||||||||||||||||||||||||||
Years Ended December 31, | $ Increase | % Increase | $ Increase | % Increase | ||||||||||||||||||||||||
2012 | 2011 | 2010 | (Decrease) | (Decrease) | (Decrease) | (Decrease) | ||||||||||||||||||||||
(In thousands, except %’s) | ||||||||||||||||||||||||||||
Net operating revenue | $ | 111,763 | $ | 108,938 | $ | 109,891 | $ | 2,825 | 2.6% | $ | (953 | ) | (0.9)% | |||||||||||||||
Station operating expense | 77,992 | 79,130 | 79,012 | (1,138 | ) | (1.4)% | 118 | 0.1% | ||||||||||||||||||||
Operating income | $ | 33,771 | $ | 29,808 | $ | 30,879 | $ | 3,963 | 13.3% | $ | (1,071 | ) | (3.5)% |
2013 vs. 2012 | 2012 vs. 2011 | ||||||||||||||||||||
Years Ended December 31, | $ Increase | % Increase | $ Increase | % Increase | |||||||||||||||||
2013 | 2012 | 2011 | (Decrease) | (Decrease) | (Decrease) | (Decrease) | |||||||||||||||
(In thousands, except %’s) | |||||||||||||||||||||
Net operating revenue | $ | 109,818 | $ | 111,763 | $ | 108,938 | $ | (1,945) | (1.7) | % | $ | 2,825 | 2.6 | % | |||||||
Station operating expense | 79,933 | 77,992 | 79,130 | 1,941 | 2.5 | % | (1,138) | (1.4) | % | ||||||||||||
Impairment of intangible assets | 2,033 | — | — | 2,033 | N/M | — | — | % | |||||||||||||
Operating income | $ | 27,852 | $ | 33,771 | $ | 29,808 | $ | (5,919) | (17.5) | % | $ | 3,963 | 13.3 | % |
2012 vs. 2011 | 2011 vs. 2010 | |||||||||||||||||||||||||||
Years Ended December 31, | % Increase | % Increase | % Increase | % Increase | ||||||||||||||||||||||||
2012 | 2011 | 2010 | (Decrease) | (Decrease) | (Decrease) | (Decrease) | ||||||||||||||||||||||
(In thousands, except %’s) | ||||||||||||||||||||||||||||
Net operating revenue | $ | 18,496 | $ | 16,335 | $ | 15,942 | $ | 2,161 | 13.2% | $ | 393 | 2.5% | ||||||||||||||||
Station operating expense | 12,296 | 11,799 | 11,323 | 497 | 4.2% | 476 | 4.2% | |||||||||||||||||||||
Operating income | $ | 6,200 | $ | 4,536 | $ | 4,619 | $ | 1,664 | 36.7% | $ | (83 | ) | (1.8)% |
________________
2013 vs. 2012 | 2012 vs. 2011 | ||||||||||||||||||||
Years Ended December 31, | $ Increase | % Increase | $ Increase | % Increase | |||||||||||||||||
2013 | 2012 | 2011 | (Decrease) | (Decrease) | (Decrease) | (Decrease) | |||||||||||||||
(In thousands, except %’s) | |||||||||||||||||||||
Net operating revenue | $ | 19,660 | $ | 18,496 | $ | 16,335 | $ | 1,164 | 6.3 | % | $ | 2,161 | 13.2 | % | |||||||
Station operating expense | 13,044 | 12,296 | 11,799 | 748 | 6.1 | % | 497 | 4.2 | % | ||||||||||||
Operating income | $ | 6,616 | $ | 6,200 | $ | 4,536 | $ | 416 | 6.7 | % | $ | 1,664 | 36.7 | % |
37 | ||
Year Ended December 31, 2012: |
Radio |
Television | Corporate and Other |
Consolidated | ||||||||||||
(In thousands) | ||||||||||||||||
Net operating revenue | $ | 111,763 | $ | 18,496 | $ | — | $ | 130,259 | ||||||||
Station operating expense | 77,992 | 12,296 | — | 90,288 | ||||||||||||
Corporate general and administrative | — | — | 7,960 | 7,960 | ||||||||||||
Operating income (loss) from continuing operations | $ | 33,771 | $ | 6,200 | $ | (7,960 | ) | $ | 32,011 |
Year Ended December 31, 2011: |
Radio |
Television | Corporate and Other |
Consolidated | ||||||||||||
(In thousands) | ||||||||||||||||
Net operating revenue | $ | 108,938 | $ | 16,335 | $ | — | $ | 125,273 | ||||||||
Station operating expense | 79,130 | 11,799 | — | 90,929 | ||||||||||||
Corporate general and administrative | — | — | 7,590 | 7,590 | ||||||||||||
Operating income (loss) from continuing operations | $ | 29,808 | $ | 4,536 | $ | (7,590 | ) | $ | 26,754 |
Year Ended December 31, 2010: |
Radio |
Television | Corporate and Other |
Consolidated | ||||||||||||
(In thousands) | ||||||||||||||||
Net operating revenue | $ | 109,891 | $ | 15,942 | $ | — | $ | 125,833 | ||||||||
Station operating expense | 79,012 | 11,323 | — | 90,335 | ||||||||||||
Corporate general and administrative | — | — | 7,274 | 7,274 | ||||||||||||
Operating income (loss) from continuing operations | $ | 30,879 | $ | 4,619 | $ | (7,274 | ) | $ | 28,224 |
Year Ended December 31, 2013: | Corporate | ||||||||||||
Radio | Television | and Other | Consolidated | ||||||||||
(In thousands) | |||||||||||||
Net operating revenue | $ | 109,818 | $ | 19,660 | $ | — | $ | 129,478 | |||||
Station operating expense | 79,933 | 13,044 | — | 92,977 | |||||||||
Corporate general and administrative | — | — | 8,172 | 8,172 | |||||||||
Impairment of intangible assets | 2,033 | — | — | 2,033 | |||||||||
Operating income (loss) from continuing operations | $ | 27,852 | $ | 6,616 | $ | (8,172) | $ | 26,296 |
Year Ended December 31, 2012: | Corporate | ||||||||||||
Radio | Television | and Other | Consolidated | ||||||||||
(In thousands) | |||||||||||||
Net operating revenue | $ | 111,763 | $ | 18,496 | $ | — | $ | 130,259 | |||||
Station operating expense | 77,992 | 12,296 | — | 90,288 | |||||||||
Corporate general and administrative | — | — | 7,960 | 7,960 | |||||||||
Operating income (loss) from continuing operations | $ | 33,771 | $ | 6,200 | $ | (7,960) | $ | 32,011 |
Year Ended December 31, 2011: | Corporate | ||||||||||||
Radio | Television | and Other | Consolidated | ||||||||||
(In thousands) | |||||||||||||
Net operating revenue | $ | 108,938 | $ | 16,335 | $ | — | $ | 125,273 | |||||
Station operating expense | 79,130 | 11,799 | — | 90,929 | |||||||||
Corporate general and administrative | — | — | 7,590 | 7,590 | |||||||||
Operating income (loss) from continuing operations | $ | 29,808 | $ | 4,536 | $ | (7,590) | $ | 26,754 |
38 | ||
39 | ||
40 | ||
Radio Segment
Year Ended December 31, 2011 Compared to Year Ended December 31, 2010
Consolidated
For the year ended December 31, 2011, consolidated net operating revenue was $125,273,000 compared with $125,833,000 for year ended December 31, 2010, a decline of $560,000 or less than 1%. Gross national revenue and gross local revenue increased $1,467,000 and $825,000, respectively. Gross political revenue decreased $2,897,000 for the year ended December 31, 2011 as compared to 2010. The improvement in gross national revenue was primarily the result of increased advertising from the financial services, cellular and automotive industries. Gross local revenue increased primarily as a result of increased local advertising in our Joplin, MO market following a tornado that caused significant damage in the market in May 2011, and an increase in advertising spending in general. The decrease in gross political revenue was attributable to political advertising in 2010 which was an election year.
Station operating expense was $90,929,000 for the year ended December 31, 2011, compared with $90,335,000 for the year ended December 31, 2010, an increase of $594,000 or less than 1%. Salaries increased $400,000 as a result of the 3.75% reinstatement in 2011 of the 5% salary reductions implemented in March 2009. Our health care costs increased $643,000 in the current year, primarily resulting from both increased claims and Health Care Reform. These increases were partially offset by reductions in music license fees and depreciation expense of $241,000 and $242,000, respectively.
Operating income from continuing operations for the year ended December 31, 2011 was $26,754,000 compared to $28,224,000 for the year ended December 31, 2010, a decrease of $1,470,000, or 5%. The decrease was a result of the decline in net operating revenue and increase in station operating expense, described above. Additionally, our corporate general and administrative charges increased $316,000 in the current year. The increase in corporate general and administrative charges was primarily from an increase in IT expenses of $200,000 and an increase in officers’ life insurance expense of $61,000 that is attributable to a decline in the cash surrender value of the life insurance policies.
The loss from discontinued operations was related to our Greenville, Mississippi TV station held for sale and is presented net of income taxes. Please refer to Note 3 – Discontinued Operations, in the accompanying notes to the consolidated financial statements for more information on our discontinued operations.
We generated net income of $12,631,000 ($2.23 per share on a fully diluted basis) during the year ended December 31, 2011, compared with $15,136,000 ($2.68 per share on a fully diluted basis) for the year ended December 31, 2010, a decrease of $2,505,000 or 17%. In 2011, we had a decrease in operating income from continuing operations of $1,470,000, as described above, and decreases in interest expense and income tax expense of $2,202,000 and $2,015,000, respectively. The reduction in interest expense was attributable to an average decline in market interest rates of approximately 0.98%, a decrease in the amortization of debt financing costs, and a decrease in the average obligation of debt outstanding. The reduction in income tax expense was attributable to our 2011 operating performance. Additionally, in 2011, we recognized a $1,326,000 charge for the write-off of unamortized debt issuance costs in conjunction with our previous credit agreement. See Note 4 – Long-Term Debt, in the accompanying notes to the consolidated financial statements. In 2010, we had non-recurring income of $3,561,000 resulting from an agreement to downgrade an FCC license at one of our stations.
41 | ||
Radio Segment
For the year ended December 31, 2011, net operating revenue of the radio segment was $108,938,000 compared with $109,891,000 for the year ended December 31, 2010, a decrease of $953,000 or 1%. Gross national revenue improved $1,464,000 in 2011. Gross political revenue and gross local revenue declined $1,935,000 and $495,000, respectively, for the year ended December 31, 2011 as compared to 2010. The increase in gross national revenue was primarily the result of increased advertising from the financial services, cellular and automotive industries. The reduction in gross political revenue was attributable to political advertising in 2010 which was an election year. The decline in gross local revenue was primarily the result of a softening in local advertising in 2011.
Station operating expense for the radio segment was $79,130,000 for the year ended December 31, 2011, compared with $79,012,000 for the year ended December 31, 2010, an increase of approximately $118,000 or less than 1%. Salaries increased $350,000 as a result of the 3.75% reinstatement in 2011 of the 5% salary reductions implemented in March 2009. Our health care costs increased approximately $537,000 in 2011, primarily resulting from both increased claims and Health Care Reform. These increases were partially offset by reductions in music license fees and ratings service expense of $247,000 and $156,000, respectively. Additionally, we had a decline in depreciation and amortization expense of $254,000 in 2011.
Operating income in the radio segment for the year ended December 31, 2011 was $29,808,000 compared with $30,879,000 for the year ended December 31 2010, a decrease of $1,071,000 or 3%. The decrease was a direct result of the decline in net operating revenue and the increase in station operating expense, described above.
Television Segment
For the year ended December 31, 2011, net operating revenue of our television segment was $16,335,000 compared with $15,942,000 for the year ended December 31, 2010, an increase of $393,000 or 2%. Gross local revenue increased $1,320,000, but was partially offset by a decline in gross political revenue of $962,000. Gross national revenue was relatively unchanged compared to 2010. The improvement in local revenue was primarily a result of an increase in local advertising in our Joplin, MO market following a tornado in May 2011 that caused significant damage in the market. Our television stations that we own and operate in Joplin did not sustain damage in the tornado. The decline in gross political revenue was attributable to political advertising in 2010 which was an election year.
Station operating expense in the television segment for the year ended December 31, 2011 was $11,799,000, compared with $11,323,000 for the year ended December 31, 2010, an increase of $476,000 or 4%. Our health care costs increased $106,000, primarily resulting from both increased claims and Health Care Reform. Sales commission and selling expenses increased $159,000 as a result of increased revenue. In addition, salaries increased $48,000 from the 3.75% reinstatement in 2011 of the 5% salary reductions implemented in March 2009.
Operating income in the television segment for the year ended December 31, 2011 was $4,536,000, compared with $4,619,000 for the year ended December 31, 2010, a decrease of $83,000 or 2%. The decrease was a result of the increase in station operating expense described above.
On May 31, 2013, we amended our Credit Facility to, among other things, change the allocation between the Term Loan and the Revolving Credit Facility to $30 million and $90 million, respectively. This change in allocation was a non-cash transaction resulting in an increase of $27,750,000 on the Revolving Credit Facility outstanding and a decrease in the Term Loan outstanding of $27,750,000.
detail.
42 | ||
Sources and Uses of Cash
stock.
Payments Due By Period | ||||||||||||||||||||
Contractual Obligations: | Total | Less Than 1 Year | 1 to 3 Years | 4 to 5 Years | More Than 5 Years | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Long-Term Debt Obligations(1) | $ | 58,828 | $ | — | $ | 1,078 | $ | 57,750 | $ | — | ||||||||||
Interest Payments on Long-Term Debt(2) | 4,129 | 1,216 | 2,378 | 535 | — | |||||||||||||||
Operating Leases | 6,177 | 1,216 | 1,303 | 729 | 2,929 | |||||||||||||||
Purchase Obligations(3) | 26,705 | 12,166 | 10,828 | 2,482 | 1,229 | |||||||||||||||
Other Long-Term Liabilities | — | — | — | — | — | |||||||||||||||
Total Contractual Cash Obligations | $ | 95,839 | $ | 14,598 | $ | 15,587 | $ | 61,496 | $ | 4,158 |
Payments Due By Period | ||||||||||||||||
Less Than | More Than | |||||||||||||||
Contractual Obligations: | Total | 1 Year | 1 to 3 Years | 4 to 5 Years | 5 Years | |||||||||||
(In thousands) | ||||||||||||||||
Long-Term Debt Obligations(1) | $ | 46,078 | $ | 1,078 | $ | — | $ | 45,000 | $ | — | ||||||
Interest Payments on Long-Term Debt(2) | 3,846 | 879 | 1,739 | 1,228 | — | |||||||||||
Operating Leases | 8,722 | 1,330 | 2,063 | 1,408 | 3,921 | |||||||||||
Purchase Obligations(3) | 23,000 | 12,955 | 7,350 | 2,232 | 463 | |||||||||||
Other Long-Term Liabilities | — | — | — | — | — | |||||||||||
Total Contractual Cash Obligations | $ | 81,646 | $ | 16,242 | $ | 11,152 | $ | 49,868 | $ | 4,384 |
(1) | Under our Credit Facility, the maturity on outstanding debt of |
(2) | Interest payments on the long-term debt are based on scheduled debt maturities and the interest rates are held constant over the remaining terms. |
(3) | Includes |
43 | ||
2013.
We completed theperform an annual impairment test for broadcast licenses duringon October 1 of each year.
Our goodwill was fully impairedof broadcast licenses in 2008; therefore we have no goodwill at December 31, 2012.
44 | ||
Stock Based Compensation: We use a Black-Scholes valuation model to estimate the fair value of stock basedoption awards. Under the fair value method, stock based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense on a straight-line basis over the vesting period. Determining the fair value of share-based awards at grant date requires assumptions and judgments about expected volatility and forfeiture rates, among other factors. If actual results differ significantly from these assumptions, then stock based compensation expense may differ materially in the future from that previously recorded.
45 | ||
46 | ||
Item 9A.Controls and Procedures
Evaluation of Disclosure Controls and Procedures
47 | ||
Inc.
criteria.
LLP
17, 2014
48 | ||
None.
PART III
49 | ||
(a) | 1. Financial Statements |
2012
2011
2011
2011
2. | Financial Statement Schedules |
3. |
50 | ||
LLP
17, 2014
51 | ||
December 31, | ||||||||
2012 | 2011 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 15,915 | $ | 6,991 | ||||
Accounts receivable, less allowance of $577 ($794 in 2011) | 19,692 | 19,415 | ||||||
Prepaid expenses and other current assets | 2,482 | 1,907 | ||||||
Barter transactions | 1,347 | 1,358 | ||||||
Deferred income taxes | 892 | 1,169 | ||||||
Current assets of station held for sale | 106 | 120 | ||||||
Total current assets | 40,434 | 30,960 | ||||||
Net property and equipment | 58,462 | 60,622 | ||||||
Other assets: | ||||||||
Broadcast licenses, net | 90,361 | 90,356 | ||||||
Other intangibles, deferred costs and investments, net of accumulated amortization of $11,984 ($11,702 in 2011) | 5,286 | 5,409 | ||||||
Assets of station held for sale | 2,787 | 2,987 | ||||||
$ | 197,330 | $ | 190,334 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 2,218 | $ | 1,728 | ||||
Accrued expenses: | ||||||||
Payroll and payroll taxes | 6,364 | 5,730 | ||||||
Other | 3,244 | 2,502 | ||||||
Barter transactions | 1,417 | 1,550 | ||||||
Current portion of long-term debt | — | 3,000 | ||||||
Current liabilities of station held for sale | 125 | 128 | ||||||
Total current liabilities | 13,368 | 14,638 | ||||||
Deferred income taxes | 17,646 | 13,383 | ||||||
Long-term debt | 58,828 | 66,078 | ||||||
Broadcast program rights | 853 | 1,080 | ||||||
Other liabilities | 2,279 | 1,985 | ||||||
Liabilities of station held for sale | 147 | 195 | ||||||
Total liabilities | 93,121 | 97,359 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ equity: | ||||||||
Preferred stock, 1,500 shares authorized, none issued and outstanding | — | — | ||||||
Common stock: | ||||||||
Class A common stock, $.01 par value, 35,000 shares authorized, 6,369 issued (6,359 in 2011) | 64 | 64 | ||||||
Class B common stock, $.01 par value, 3,500 shares authorized, 797 issued and outstanding (797 in 2011) | 8 | 8 | ||||||
Additional paid-in capital | 51,061 | 50,662 | ||||||
Retained earnings | 81,746 | 70,831 | ||||||
Treasury stock (1,491 shares in 2012 and 1,488 in 2011, at cost) | (28,670 | ) | (28,590 | ) | ||||
Total stockholders’ equity | 104,209 | 92,975 | ||||||
$ | 197,330 | $ | 190,334 |
December 31, | |||||||
2013 | 2012 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 17,628 | $ | 15,915 | |||
Accounts receivable, less allowance of $578 ($577 in 2012) | 19,815 | 19,692 | |||||
Prepaid expenses and other current assets | 2,350 | 2,482 | |||||
Barter transactions | 1,263 | 1,347 | |||||
Deferred income taxes | 1,025 | 892 | |||||
Current assets of station held for sale | — | 106 | |||||
Total current assets | 42,081 | 40,434 | |||||
Net property and equipment | 56,337 | 58,462 | |||||
Other assets: | |||||||
Broadcast licenses, net | 88,460 | 90,361 | |||||
Other intangibles, deferred costs and investments, net of accumulated amortization of $12,205 ($11,984 in 2012) | 6,346 | 5,286 | |||||
Assets of station held for sale | — | 2,787 | |||||
$ | 193,224 | $ | 197,330 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 1,962 | $ | 2,218 | |||
Accrued expenses: | |||||||
Payroll and payroll taxes | 6,700 | 6,364 | |||||
Other | 2,787 | 3,244 | |||||
Barter transactions | 1,475 | 1,417 | |||||
Current portion of long-term debt | 1,078 | — | |||||
Current liabilities of station held for sale | — | 125 | |||||
Total current liabilities | 14,002 | 13,368 | |||||
Deferred income taxes | 20,571 | 17,646 | |||||
Long-term debt | 45,000 | 58,828 | |||||
Broadcast program rights | 1,163 | 853 | |||||
Other liabilities | 2,787 | 2,279 | |||||
Liabilities of station held for sale | — | 147 | |||||
Total liabilities | 83,523 | 93,121 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Preferred stock, 1,500 shares authorized, none issued and outstanding | — | — | |||||
Common stock: | |||||||
Class A common stock, $.01 par value, 35,000 shares authorized, 6,409 issued (6,369 in 2012) | 64 | 64 | |||||
Class B common stock, $.01 par value, 3,500 shares authorized, 816 issued and outstanding (797 in 2012) | 8 | 8 | |||||
Additional paid-in capital | 51,456 | 51,061 | |||||
Retained earnings | 86,693 | 81,746 | |||||
Treasury stock (1,488 shares in 2013 and 1,491 in 2012, at cost) | (28,520) | (28,670) | |||||
Total stockholders’ equity | 109,701 | 104,209 | |||||
$ | 193,224 | $ | 197,330 |
52 | ||
Years Ended December 31, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
(In thousands, except per share data) | ||||||||||||
Net operating revenue | $ | 130,259 | $ | 125,273 | $ | 125,833 | ||||||
Station operating expense | 90,288 | 90,929 | 90,335 | |||||||||
Corporate general and administrative | 7,960 | 7,590 | 7,274 | |||||||||
98,248 | 98,519 | 97,609 | ||||||||||
Operating income from continuing operations | 32,011 | 26,754 | 28,224 | |||||||||
Other (income) expenses: | ||||||||||||
Interest expense | 1,733 | 3,420 | 5,622 | |||||||||
Write-off debt issuance costs | — | 1,326 | — | |||||||||
Other | 279 | 519 | (3,481 | ) | ||||||||
Income from continuing operations before income tax | 29,999 | 21,489 | 26,083 | |||||||||
Income tax provision: | ||||||||||||
Current | 7,399 | 2,504 | 5,539 | |||||||||
Deferred | 4,540 | 6,100 | 5,080 | |||||||||
11,939 | 8,604 | 10,619 | ||||||||||
Income from continuing operations, net of income tax | 18,060 | 12,885 | 15,464 | |||||||||
Loss from discontinued operations, net of income tax | (135 | ) | (254 | ) | (328 | ) | ||||||
Net income | $ | 17,925 | $ | 12,631 | $ | 15,136 | ||||||
Basic earnings (loss) per share | ||||||||||||
From continuing operations | $ | 3.19 | $ | 2.28 | $ | 2.74 | ||||||
From discontinued operations | (.02 | ) | (.04 | ) | (.06 | ) | ||||||
Basic earnings per share | $ | 3.17 | $ | 2.24 | $ | 2.68 | ||||||
Weighted average common shares | 5,659 | 5,651 | 5,640 | |||||||||
Diluted earnings (loss) per share | ||||||||||||
From continuing operations | $ | 3.18 | $ | 2.28 | $ | 2.74 | ||||||
From discontinued operations | (.02 | ) | (.05 | ) | (.06 | ) | ||||||
Diluted earnings per share | $ | 3.16 | $ | 2.23 | $ | 2.68 | ||||||
Weighted average common and common equivalent shares | 5,672 | 5,656 | 5,641 | |||||||||
Dividends declared per share | $ | 1.24 | $ | — | $ | — |
Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
(In thousands, except per share data) | ||||||||||
Net operating revenue | $ | 129,478 | $ | 130,259 | $ | 125,273 | ||||
Station operating expense | 92,977 | 90,288 | 90,929 | |||||||
Corporate general and administrative | 8,172 | 7,960 | 7,590 | |||||||
Impairment of intangible assets | 2,033 | — | — | |||||||
103,182 | 98,248 | 98,519 | ||||||||
Operating income from continuing operations | 26,296 | 32,011 | 26,754 | |||||||
Other (income) expenses: | ||||||||||
Interest expense | 1,305 | 1,733 | 3,420 | |||||||
Write-off debt issuance costs | 55 | — | 1,326 | |||||||
Other | (106) | 279 | 519 | |||||||
Income from continuing operations before income tax | 25,042 | 29,999 | 21,489 | |||||||
Income tax provision: | ||||||||||
Current | 7,187 | 7,399 | 2,504 | |||||||
Deferred | 2,805 | 4,540 | 6,100 | |||||||
9,992 | 11,939 | 8,604 | ||||||||
Income from continuing operations, net of income tax | 15,050 | 18,060 | 12,885 | |||||||
Income (loss) from discontinued operations, net of income tax | 223 | (135) | (254) | |||||||
Net income | $ | 15,273 | $ | 17,925 | $ | 12,631 | ||||
Basic earnings (loss) per share | ||||||||||
From continuing operations | $ | 2.62 | $ | 3.19 | $ | 2.28 | ||||
From discontinued operations | ..04 | (.02) | (.04) | |||||||
Basic earnings per share | $ | 2.66 | $ | 3.17 | $ | 2.24 | ||||
Weighted average common shares | 5,681 | 5,659 | 5,651 | |||||||
Diluted earnings (loss) per share | ||||||||||
From continuing operations | $ | 2.60 | $ | 3.18 | $ | 2.28 | ||||
From discontinued operations | ..04 | (.02) | (.05) | |||||||
Diluted earnings per share | $ | 2.64 | $ | 3.16 | $ | 2.23 | ||||
Weighted average common and common equivalent shares | 5,745 | 5,672 | 5,656 | |||||||
Dividends declared per share | $ | 1.80 | $ | 1.24 | $ | — |
53 | ||
Class A | Class B | Additional | Total | |||||||||||||||||||||||||||||
Common Stock | Common Stock | Paid-In | Retained | Treasury | Stockholders’ | |||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Earnings | Stock | Equity | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Balance at January 1, 2010 | 6,360 | $ | 64 | 799 | $ | 8 | $ | 49,352 | $ | 43,064 | $ | (28,395 | ) | $ | 64,093 | |||||||||||||||||
Net income | 15,136 | 15,136 | ||||||||||||||||||||||||||||||
Conversion of shares from Class B to Class A | 1 | (1 | ) | — | ||||||||||||||||||||||||||||
Forfeiture of restricted stock | (3 | ) | — | |||||||||||||||||||||||||||||
Compensation expense related to restricted stock awards | 360 | 360 | ||||||||||||||||||||||||||||||
Share-based compensation cost | 567 | 567 | ||||||||||||||||||||||||||||||
Purchase of shares held in treasury | (78 | ) | (78 | ) | ||||||||||||||||||||||||||||
Balance at December 31, 2010 | 6,358 | $ | 64 | 798 | $ | 8 | $ | 50,279 | $ | 58,200 | $ | (28,473 | ) | $ | 80,078 | |||||||||||||||||
Net income | 12,631 | 12,631 | ||||||||||||||||||||||||||||||
Conversion of shares from Class B to Class A | 1 | (1 | ) | — | ||||||||||||||||||||||||||||
Compensation expense related to restricted stock awards | 187 | 187 | ||||||||||||||||||||||||||||||
Share-based compensation cost | 196 | 196 | ||||||||||||||||||||||||||||||
Purchase of shares held in treasury | (117 | ) | (117 | ) | ||||||||||||||||||||||||||||
Balance at December 31, 2011 | 6,359 | $ | 64 | 797 | $ | 8 | $ | 50,662 | $ | 70,831 | $ | (28,590 | ) | $ | 92,975 | |||||||||||||||||
Net income | 17,925 | 17,925 | ||||||||||||||||||||||||||||||
Conversion of shares from Class B to Class A | — | |||||||||||||||||||||||||||||||
Net proceeds from exercised options | 10 | 267 | 267 | |||||||||||||||||||||||||||||
Dividends declared per common share | (7,010 | ) | (7,010 | ) | ||||||||||||||||||||||||||||
Compensation expense related to restricted stock awards | 110 | 110 | ||||||||||||||||||||||||||||||
Share-based compensation cost | 22 | 22 | ||||||||||||||||||||||||||||||
Purchase of shares held in treasury | (80 | ) | (80 | ) | ||||||||||||||||||||||||||||
Balance at December 31, 2012 | 6,369 | $ | 64 | 797 | $ | 8 | $ | 51,061 | $ | 81,746 | $ | (28,670 | ) | $ | 104,209 |
2011
Class A | Class B | Additional | |||||||||||||||||||||
Common Stock | Common Stock | Paid-In | Retained | Treasury | Stockholders’ | ||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Earnings | Stock | Equity | ||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Balance at January 1, 2011 | 6,358 | $ | 64 | 798 | $ | 8 | $ | 50,279 | $ | 58,200 | $ | (28,473) | $ | 80,078 | |||||||||
Net income | 12,631 | 12,631 | |||||||||||||||||||||
Conversion of shares from Class B to Class A | 1 | (1) | — | ||||||||||||||||||||
Compensation expense related to restricted stock awards | 187 | 187 | |||||||||||||||||||||
Share-based compensation cost | 196 | 196 | |||||||||||||||||||||
Purchase of shares held in treasury | (117) | (117) | |||||||||||||||||||||
Balance at December 31, 2011 | 6,359 | $ | 64 | 797 | $ | 8 | $ | 50,662 | $ | 70,831 | $ | (28,590) | $ | 92,975 | |||||||||
Net income | 17,925 | 17,925 | |||||||||||||||||||||
Net proceeds from exercised options | 10 | 267 | 267 | ||||||||||||||||||||
Dividends declared per common share | (7,010) | (7,010) | |||||||||||||||||||||
Compensation expense related to restricted stock awards | 110 | 110 | |||||||||||||||||||||
Share-based compensation cost | 22 | 22 | |||||||||||||||||||||
Purchase of shares held in treasury | (80) | (80) | |||||||||||||||||||||
Balance at December 31, 2012 | 6,369 | $ | 64 | 797 | $ | 8 | $ | 51,061 | $ | 81,746 | $ | (28,670) | $ | 104,209 | |||||||||
Net income | 15,273 | 15,273 | |||||||||||||||||||||
Conversion of shares from Class B to Class A | 1 | (1) | — | ||||||||||||||||||||
Issuance of restricted stock | 30 | 20 | — | ||||||||||||||||||||
Net proceeds from exercised options | 9 | 275 | 275 | ||||||||||||||||||||
Dividends declared per common share | (10,326) | (10,326) | |||||||||||||||||||||
Compensation expense related to restricted stock awards | 135 | 135 | |||||||||||||||||||||
Purchase of shares held in treasury | (95) | (95) | |||||||||||||||||||||
401(k) plan contribution | (15) | 245 | 230 | ||||||||||||||||||||
Balance at December 31, 2013 | 6,409 | $ | 64 | 816 | $ | 8 | $ | 51,456 | $ | 86,693 | $ | (28,520) | $ | 109,701 |
54 | ||
Years Ended December 31, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
(In thousands) | ||||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 17,925 | $ | 12,631 | $ | 15,136 | ||||||
Loss from discontinued operations, net of tax | 135 | 254 | 328 | |||||||||
Income from continuing operations | 18,060 | 12,885 | 15,464 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 6,858 | 7,101 | 7,335 | |||||||||
Share-based compensation expense | 22 | 196 | 567 | |||||||||
Barter revenue, net | (294 | ) | (231 | ) | (13 | ) | ||||||
Broadcast program rights amortization | 614 | 637 | 651 | |||||||||
Deferred income taxes | 4,540 | 6,100 | 5,080 | |||||||||
Loss on sale of assets | 221 | 626 | 274 | |||||||||
Gain on license downgrade | — | — | (3,561 | ) | ||||||||
Other (gains) losses, net | 59 | (109 | ) | (195 | ) | |||||||
Deferred and other compensation | 3 | 38 | 42 | |||||||||
Compensation expense related to restricted stock awards | 110 | 187 | 360 | |||||||||
Write-off of debt issuance costs | — | 1,326 | — | |||||||||
Amortization of deferred costs | 231 | 642 | 1,079 | |||||||||
Changes in assets and liabilities: | ||||||||||||
(Increase) decrease in receivables and prepaid expenses | (742 | ) | (365 | ) | 688 | |||||||
Payments for broadcast program rights | (626 | ) | (630 | ) | (662 | ) | ||||||
Increase (decrease) in accounts payable, accrued expenses, and other liabilities | 1,850 | (1,387 | ) | 264 | ||||||||
Total adjustments | 12,846 | 14,131 | 11,909 | |||||||||
Net cash provided by continuing operating activities | 30,906 | 27,016 | 27,373 | |||||||||
Net cash provided by discontinued operating activities | 49 | 162 | 166 | |||||||||
Net cash provided by operating activities | 30,955 | 27,178 | 27,539 | |||||||||
Cash flows from investing activities: | ||||||||||||
Acquisition of property and equipment | (4,809 | ) | (5,410 | ) | (4,141 | ) | ||||||
Proceeds from sale and disposal of assets | 42 | 521 | 275 | |||||||||
Proceeds from sale of short-term investments | — | 1,018 | 998 | |||||||||
Proceeds from license downgrade | — | — | 3,561 | |||||||||
Purchases of short-term investments | — | — | (2,005 | ) | ||||||||
Other investing activities | (157 | ) | (90 | ) | (146 | ) | ||||||
Net cash used in continuing investing activities | (4,924 | ) | (3,961 | ) | (1,458 | ) | ||||||
Net cash used in discontinued investing activities | (34 | ) | (157 | ) | (202 | ) | ||||||
Net cash used in investing activities | (4,958 | ) | (4,118 | ) | (1,660 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Payments on long-term debt | (10,250 | ) | (119,100 | ) | (25,000 | ) | ||||||
Cash dividends paid | (7,010 | ) | — | — | ||||||||
Proceeds from long-term debt | — | 92,100 | — | |||||||||
Payments for debt issuance costs | — | (1,149 | ) | (1,503 | ) | |||||||
Other financing activities | 187 | (117 | ) | (78 | ) | |||||||
Net cash used in financing activities | (17,073 | ) | (28,266 | ) | (26,581 | ) | ||||||
Net increase (decrease) in cash and cash equivalents | 8,924 | (5,206 | ) | (702 | ) | |||||||
Cash and cash equivalents, beginning of year | 6,991 | 12,197 | 12,899 | |||||||||
Cash and cash equivalents, end of year | $ | 15,915 | $ | 6,991 | $ | 12,197 |
Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
(In thousands) | ||||||||||
Cash flows from operating activities: | ||||||||||
Net income | $ | 15,273 | $ | 17,925 | $ | 12,631 | ||||
Income (loss) from discontinued operations, net of tax | 223 | (135) | (254) | |||||||
Income from continuing operations | 15,050 | 18,060 | 12,885 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||
Depreciation and amortization | 6,768 | 6,858 | 7,101 | |||||||
Deferred income taxes | 2,805 | 4,540 | 6,100 | |||||||
Impairment of intangible assets | 2,033 | — | — | |||||||
Broadcast program rights amortization | 637 | 614 | 637 | |||||||
Amortization of deferred costs | 204 | 231 | 642 | |||||||
Compensation expense related to restricted stock awards | 135 | 110 | 187 | |||||||
(Gain) loss on sale of assets | (126) | 221 | 626 | |||||||
Other (gains) losses, net | 20 | 59 | (109) | |||||||
Share-based compensation expense | — | 22 | 196 | |||||||
Barter revenue, net | (11) | (294) | (231) | |||||||
Deferred and other compensation | 19 | 3 | 38 | |||||||
Write-off of debt issuance costs | 55 | — | 1,326 | |||||||
Income tax benefit on exercise of options | (13) | — | — | |||||||
Changes in assets and liabilities: | ||||||||||
Decrease (increase) in receivables and prepaid expenses | 160 | (742) | (365) | |||||||
Payments for broadcast program rights | (628) | (626) | (630) | |||||||
(Decrease) increase in accounts payable, accrued expenses, and other liabilities | (396) | 1,850 | (1,387) | |||||||
Total adjustments | 11,662 | 12,846 | 14,131 | |||||||
Net cash provided by continuing operating activities | 26,712 | 30,906 | 27,016 | |||||||
Net cash provided by discontinued operating activities | — | 49 | 162 | |||||||
Net cash provided by operating activities | 26,712 | 30,955 | 27,178 | |||||||
Cash flows from investing activities: | ||||||||||
Acquisition of property and equipment | (5,152) | (4,809) | (5,410) | |||||||
Proceeds from sale and disposal of assets | 792 | 42 | 521 | |||||||
Proceeds from sale of television station | 2,960 | — | — | |||||||
Proceeds from sale of short-term investments | — | — | 1,018 | |||||||
Other investing activities | (410) | (157) | (90) | |||||||
Net cash used in continuing investing activities | (1,810) | (4,924) | (3,961) | |||||||
Net cash used in discontinued investing activities | — | (34) | (157) | |||||||
Net cash used in investing activities | (1,810) | (4,958) | (4,118) | |||||||
Cash flows from financing activities: | ||||||||||
Payments on long-term debt | (12,750) | (10,250) | (119,100) | |||||||
Cash dividends paid | (10,326) | (7,010) | — | |||||||
Payments for debt issuance costs | (289) | — | (1,149) | |||||||
Proceeds from long-term debt | — | — | 92,100 | |||||||
Other financing activities | 176 | 187 | (117) | |||||||
Net cash used in financing activities | (23,189) | (17,073) | (28,266) | |||||||
Net increase (decrease) in cash and cash equivalents | 1,713 | 8,924 | (5,206) | |||||||
Cash and cash equivalents, beginning of year | 15,915 | 6,991 | 12,197 | |||||||
Cash and cash equivalents, end of year | $ | 17,628 | $ | 15,915 | $ | 6,991 |
55 | ||
1. | Summary of Significant Accounting Policies |
Saga Communications, Inc.
Notes to Consolidated Financial Statements — (Continued)
2012.
2013.
56 | ||
Write Off of | ||||||||||||
Balance | Charged to | Uncollectible | Balance at | |||||||||
at Beginning | Costs and | Accounts, Net of | End of | |||||||||
Year Ended | of Period | Expenses | Recoveries | Period | ||||||||
(In thousands) | ||||||||||||
December 31, 2012 | $794 | $134 | $(351) | $577 | ||||||||
December 31, 2011 | $797 | $526 | $(529) | $794 | ||||||||
December 31, 2010 | $733 | $560 | $(496) | $797 |
Write Off of | |||||||||||||
Balance | Charged to | Uncollectible | Balance at | ||||||||||
at Beginning | Costs and | Accounts, Net of | End of | ||||||||||
Year Ended | of Period | Expenses | Recoveries | Period | |||||||||
(In thousands) | |||||||||||||
December 31, 2013 | $ | 577 | $ | 293 | $ | (292) | $ | 578 | |||||
December 31, 2012 | $ | 794 | $ | 134 | $ | (351) | $ | 577 | |||||
December 31, 2011 | $ | 797 | $ | 526 | $ | (529) | $ | 794 |
Saga Communications, Inc.
Notes to Consolidated Financial Statements — (Continued)
2011.
Estimated | December 31, | |||||||||||
Useful Life | 2012 | 2011 | ||||||||||
(In thousands) | ||||||||||||
Land and land improvements | — | $ | 11,321 | $ | 11,178 | |||||||
Buildings | 31.5 years | 32,367 | 31,741 | |||||||||
Towers and antennae | 7-15 years | 25,687 | 25,582 | |||||||||
Equipment | 3-15 years | 74,874 | 74,403 | |||||||||
Furniture, fixtures and leasehold improvements | 7-20 years | 7,768 | 7,623 | |||||||||
Vehicles | 5 years | 3,762 | 3,720 | |||||||||
155,779 | 154,247 | |||||||||||
Accumulated depreciation | (97,317 | ) | (93,625 | ) | ||||||||
Net property and equipment | $ | 58,462 | $ | 60,622 |
Estimated | December 31, | |||||||||
Useful Life | 2013 | 2012 | ||||||||
(In thousands) | ||||||||||
Land and land improvements | — | $ | 10,984 | $ | 11,321 | |||||
Buildings | 31.5 years | 32,378 | 32,367 | |||||||
Towers and antennae | 7-15 years | 25,761 | 25,687 | |||||||
Equipment | 3-15 years | 77,908 | 74,874 | |||||||
Furniture, fixtures and leasehold improvements | 7-20 years | 7,926 | 7,768 | |||||||
Vehicles | 5 years | 3,805 | 3,762 | |||||||
158,762 | 155,779 | |||||||||
Accumulated depreciation | (102,425) | (97,317) | ||||||||
Net property and equipment | $ | 56,337 | $ | 58,462 |
57 | ||
Saga Communications, Inc.
Notes to Consolidated Financial Statements — (Continued)
Balance Sheets.
We have a Stock Buy-Back Program (the “Buy-Back Program”) which allows us to purchase up to $60 million of our Class A Common Stock. As of December 31, 2012, we had remaining authorization of $14.2 million for future repurchases of our Class A Common Stock.
Repurchases of shares of our Common Stock are recorded as Treasury Stock and result in a reduction of Stockholders’ Equity. During 2012, 2011 and 2010, we acquired 2,924 shares at an average price of $27.30 per share, 5,380 shares at an average price of $21.71 per share and 7,288 shares at an average price of $10.69 per share, respectively.
58 | ||
59 | ||
Dividends
On October 2, 2012
Earnings Per Share
participating securities.
Years Ended December 31, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
(In thousands, except per share data) | ||||||||||||
Numerator: | ||||||||||||
Net income available to common stockholders | $ | 17,925 | $ | 12,631 | $ | 15,136 | ||||||
Denominator: | ||||||||||||
Denominator for basic earnings per share-weighted average shares | 5,659 | 5,651 | 5,640 | |||||||||
Effect of dilutive securities: | ||||||||||||
Stock options | 13 | 5 | 1 | |||||||||
Denominator for diluted earnings per share — adjusted weighted-average shares and assumed conversions | 5,672 | 5,656 | 5,641 | |||||||||
Basic earnings per share | $ | 3.17 | $ | 2.24 | $ | 2.68 | ||||||
Diluted earnings per share | $ | 3.16 | $ | 2.23 | $ | 2.68 |
Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
(In thousands, except per share data) | ||||||||||
Numerator: | ||||||||||
Net income | $ | 15,273 | $ | 17,925 | $ | 12,631 | ||||
Less: Net income allocated to unvested participating securities | 135 | — | — | |||||||
Net income available to common stockholders | $ | 15,138 | $ | 17,925 | $ | 12,631 | ||||
Denominator: | ||||||||||
Denominator for basic earnings per share-weighted average shares | 5,681 | 5,659 | 5,651 | |||||||
Effect of dilutive securities: | ||||||||||
Stock options | 64 | 13 | 5 | |||||||
Denominator for diluted earnings per share — adjusted weighted-average shares and assumed conversions | 5,745 | 5,672 | 5,656 | |||||||
Basic earnings per share | $ | 2.66 | $ | 3.17 | $ | 2.24 | ||||
Diluted earnings per share | $ | 2.64 | $ | 3.16 | $ | 2.23 |
60 | ||
2. | Broadcast Licenses and Other |
Radio | Television | Total | ||||||||||
(In thousands) | ||||||||||||
Balance at January 1, 2012 | $ | 80,768 | $ | 9,588 | $ | 90,356 | ||||||
Acquisitions | 5 | — | 5 | |||||||||
Balance at December 31, 2012 | $ | 80,773 | $ | 9,588 | $ | 90,361 |
There were no changes to broadcast licenses for the year ended December 31, 2011.
Radio | Television | Total | ||||||||
(In thousands) | ||||||||||
Balance at January 1, 2012 | $ | 80,768 | $ | 9,588 | $ | 90,356 | ||||
Acquisitions | 5 | — | 5 | |||||||
Balance at December 31, 2012 | $ | 80,773 | $ | 9,588 | $ | 90,361 | ||||
Acquisitions | 132 | — | 132 | |||||||
Impairment charge | (2,033) | — | (2,033) | |||||||
Balance at December 31, 2013 | $ | 78,872 | $ | 9,588 | $ | 88,460 |
61 | ||
markets.
Fourth | Fourth | ||
Quarter | Quarter | ||
2012 | 2011 | ||
Discount rates | 12.0% - 12.2% | 11.9% - 12.2% | |
Operating profit margin ranges | 17.4% - 35.8% | 17.4% - 35.8% | |
Market long-term revenue growth rates | 1.75% - 3.1% | 2.0% - 3.0% |
2013.
Fourth | Fourth | ||||
Quarter | Quarter | ||||
2013 | 2012 | ||||
Discount rates | 12.2% - 12.4% | 12.0% - 12.2% | |||
Operating profit margin ranges | 19.9% - 35.8% | 17.4% - 35.8% | |||
Market long-term revenue growth rates | 1.9 % - 3.3% | 1.75% - 3.1% |
2010 Impairment Test
During the fourth quarter of 2010, we completed our annual impairment test of broadcast licenses and determined that the fair value of the broadcast licenses was greater than the carrying value recorded for each of our markets and, accordingly, no impairment was recorded.
62 | ||
Amortizable intangible assets are included in Other intangibles, deferred costs and investments in the Consolidated Balance Sheets.
Gross | ||||||||||
Carrying | Accumulated | Net | ||||||||
Amount | Amortization | Amount | ||||||||
(In thousands) | ||||||||||
Non-competition agreements | $ | 4,511 | $ | 4,511 | $ | — | ||||
Favorable lease agreements | 5,862 | 5,577 | 285 | |||||||
Other intangibles | 1,741 | 1,592 | 149 | |||||||
Total amortizable intangible assets | $ | 12,114 | $ | 11,680 | $ | 434 |
Gross | ||||||||||||
Carrying | Accumulated | Net | ||||||||||
Amount | Amortization | Amount | ||||||||||
(In thousands) | ||||||||||||
Non-competition agreements | $ | 4,511 | $ | 4,511 | $ | — | ||||||
Favorable lease agreements | 5,862 | 5,540 | 322 | |||||||||
Other intangibles | 1,731 | 1,577 | 154 | |||||||||
Total amortizable intangible assets | $ | 12,104 | $ | 11,628 | $ | 476 |
We have recorded amortizable intangible assets at December 31, 2011 as follows:
Gross | ||||||||||||
Carrying | Accumulated | Net | ||||||||||
Amount | Amortization | Amount | ||||||||||
(In thousands) | ||||||||||||
Non-competition agreements | $ | 4,511 | $ | 4,511 | $ | — | ||||||
Favorable lease agreements | 5,862 | 5,504 | 358 | |||||||||
Other intangibles | 1,716 | 1,562 | 154 | |||||||||
Total amortizable intangible assets | $ | 12,089 | $ | 11,577 | $ | 512 |
Gross | ||||||||||
Carrying | Accumulated | Net | ||||||||
Amount | Amortization | Amount | ||||||||
(In thousands) | ||||||||||
Non-competition agreements | $ | 4,511 | $ | 4,511 | $ | — | ||||
Favorable lease agreements | 5,862 | 5,540 | 322 | |||||||
Other intangibles | 1,731 | 1,577 | 154 | |||||||
Total amortizable intangible assets | $ | 12,104 | $ | 11,628 | $ | 476 |
3. | Discontinued Operations |
2013,included within income from discontinued operations.
63 | ||
4. | Long-Term Debt |
December 31, | ||||||||
2012 | 2011 | |||||||
(In thousands) | ||||||||
Credit Agreement: | ||||||||
Term loan | $ | 57,750 | $ | 58,500 | ||||
Revolving credit facility | — | 9,500 | ||||||
Secured debt of affiliate | 1,078 | 1,078 | ||||||
58,828 | 69,078 | |||||||
Amounts payable within one year | — | 3,000 | ||||||
$ | 58,828 | $ | 66,078 |
December 31, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Credit Agreement: | |||||||
Term loan | $ | 30,000 | $ | 57,750 | |||
Revolving credit facility | 15,000 | — | |||||
Secured debt of affiliate | 1,078 | 1,078 | |||||
46,078 | 58,828 | ||||||
Amounts payable within one year | 1,078 | — | |||||
$ | 45,000 | $ | 58,828 |
Year Ending December 31, | (In thousands) | |||
2013 | $ | — | ||
2014 | 1,078 | |||
2015 | — | |||
2016 | 57,750 | |||
2017 | — | |||
Thereafter | — | |||
$ | 58,828 |
Year Ending December 31, | (In thousands) | |||
2014 | $ | 1,078 | ||
2015 | — | |||
2016 | — | |||
2017 | — | |||
2018 | 45,000 | |||
Thereafter | — | |||
$ | 46,078 |
Our credit facility, providing availability up to $117.8 million at December 31, 2012 (the “Credit Facility”) consists of a $57.8 millionto (i) extend the maturity date toMay 31, 2018; (ii) change the allocation between the term loan (the “Term Loan”) and a $60 millionthe revolving loan (the “Revolving Credit Facility”) to $30 million and matures$90 million, respectively; (iii) modify the Consolidated Fixed Charge Coverage ratio to exclude distributions up to $20 million made when the Consolidated Leverage Ratio is less than2.50 to1.00 from the fixed charge component of such ratio; (iv) revise the interest rates and commitment fees, as set forth below; (v) remove the cap on June 13, 2016. An additional $40business acquisitions if the Consolidated Leverage Ratio is less than 2.50 to 1.00, and if equal to or greater than such amount, cap such acquisitions at $35 million financing may, in the future, be made available to the Company subject to compliance with termscertain conditions; and conditions(vi) remove the cap on the annual aggregate of dividends, distributions, and stock redemptions if the Credit Facility.
Consolidated Leverage Ratio is less than 2.50 to 1.00, and if equal to or greater than such amount, such annual aggregate amount becomes subject to a pro forma covenant compliance.
paymentfor the subsequent twelve month period.
64 | ||
5. | Supplemental Cash Flow Information |
Years Ended December 31, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
(In thousands) | ||||||||||||
Cash paid during the period for: | ||||||||||||
Interest | $ | 1,559 | $ | 2,788 | $ | 4,504 | ||||||
Income taxes | $ | 6,999 | $ | 3,202 | $ | 4,664 | ||||||
Non-cash transactions: | ||||||||||||
Barter revenue | $ | 4,188 | $ | 4,369 | $ | 4,554 | ||||||
Barter expense | $ | 3,894 | $ | 4,138 | $ | 4,541 | ||||||
Acquisition of property and equipment | $ | 99 | $ | 286 | $ | 137 |
Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
(In thousands) | ||||||||||
Cash paid during the period for: | ||||||||||
Interest | $ | 1,103 | $ | 1,559 | $ | 2,788 | ||||
Income taxes | $ | 7,134 | $ | 6,999 | $ | 3,202 | ||||
Non-cash transactions: | ||||||||||
Barter revenue | $ | 3,855 | $ | 4,188 | $ | 4,369 | ||||
Barter expense | $ | 3,844 | $ | 3,894 | $ | 4,138 | ||||
Acquisition of property and equipment | $ | 104 | $ | 99 | $ | 286 |
65 | ||
6. | Income Taxes |
December 31, | ||||||||
2012 | 2011 | |||||||
(In thousands) | ||||||||
Deferred tax liabilities: | ||||||||
Property and equipment | $ | 9,205 | $ | 9,766 | ||||
Intangible assets | 10,437 | 5,538 | ||||||
Prepaid expenses | 616 | 439 | ||||||
Total deferred tax liabilities | 20,258 | 15,743 | ||||||
Deferred tax assets: | ||||||||
Allowance for doubtful accounts | 233 | 319 | ||||||
Compensation | 3,195 | 3,060 | ||||||
Other accrued liabilities | 76 | 150 | ||||||
Loss carry forwards | 58 | 92 | ||||||
3,562 | 3,621 | |||||||
Less: valuation allowance | 58 | 92 | ||||||
Total net deferred tax assets | 3,504 | 3,529 | ||||||
Net deferred tax liabilities | $ | 16,754 | $ | 12,214 | ||||
Current portion of deferred tax assets | $ | 892 | $ | 1,169 | ||||
Non-current portion of deferred tax liabilities | (17,646 | ) | (13,383 | ) | ||||
Net deferred tax liabilities | $ | (16,754 | ) | $ | (12,214 | ) |
December 31, | |||||||
2013 | 2012 | ||||||
(In thousands) | |||||||
Deferred tax liabilities: | |||||||
Property and equipment | $ | 8,235 | $ | 9,205 | |||
Intangible assets | 14,425 | 10,437 | |||||
Prepaid expenses | 601 | 616 | |||||
Total deferred tax liabilities | 23,261 | 20,258 | |||||
Deferred tax assets: | |||||||
Allowance for doubtful accounts | 232 | 233 | |||||
Compensation | 3,355 | 3,195 | |||||
Other accrued liabilities | 128 | 76 | |||||
Loss carry forwards | 7 | 58 | |||||
3,722 | 3,562 | ||||||
Less: valuation allowance | 7 | 58 | |||||
Total net deferred tax assets | 3,715 | 3,504 | |||||
Net deferred tax liabilities | $ | 19,546 | $ | 16,754 | |||
Current portion of deferred tax assets | $ | 1,025 | $ | 892 | |||
Non-current portion of deferred tax liabilities | (20,571) | (17,646) | |||||
Net deferred tax liabilities | $ | (19,546) | $ | (16,754) |
66 | ||
Years Ended December 31, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
(In thousands) | ||||||||||||
Current: | ||||||||||||
Federal | $ | 6,160 | $ | 1,820 | $ | 4,320 | ||||||
State | 1,150 | 510 | 1,000 | |||||||||
Total current | 7,310 | 2,330 | 5,320 | |||||||||
Total deferred | 4,540 | 6,100 | 5,080 | |||||||||
$ | 11,850 | $ | 8,430 | $ | 10,400 | |||||||
Taxes are allocated as follows: | ||||||||||||
Continuing operations | $ | 11,939 | $ | 8,604 | $ | 10,619 | ||||||
Discontinued operations | (89 | ) | (174 | ) | (219 | ) | ||||||
$ | 11,850 | $ | 8,430 | $ | 10,400 |
Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
(In thousands) | ||||||||||
Current: | ||||||||||
Federal | $ | 6,210 | $ | 6,160 | $ | 1,820 | ||||
State | 1,125 | 1,150 | 510 | |||||||
Total current | 7,335 | 7,310 | 2,330 | |||||||
Total deferred | 2,805 | 4,540 | 6,100 | |||||||
$ | 10,140 | $ | 11,850 | $ | 8,430 | |||||
Taxes are allocated as follows: | ||||||||||
Continuing operations | $ | 9,992 | $ | 11,939 | $ | 8,604 | ||||
Discontinued operations | 148 | (89) | (174) | |||||||
$ | 10,140 | $ | 11,850 | $ | 8,430 |
Years Ended December 31, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
(In thousands) | ||||||||||||
Tax expense at U.S. statutory rates | $ | 10,486 | $ | 7,260 | $ | 8,875 | ||||||
State tax expense, net of federal benefit | 1,356 | 1,116 | 1,523 | |||||||||
Other, net | 42 | 69 | 164 | |||||||||
Change in valuation allowance on loss carry forwards | (34 | ) | (15 | ) | (162 | ) | ||||||
$ | 11,850 | $ | 8,430 | $ | 10,400 | |||||||
Discontinued operations | 89 | 174 | 219 | |||||||||
$ | 11,939 | $ | 8,604 | $ | 10,619 |
Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
(In thousands) | ||||||||||
Tax expense at U.S. statutory rates | $ | 8,894 | $ | 10,486 | $ | 7,260 | ||||
State tax expense, net of federal benefit | 1,192 | 1,356 | 1,116 | |||||||
Other, net | 105 | 42 | 69 | |||||||
Change in valuation allowance on loss carry forwards | (51) | (34) | (15) | |||||||
$ | 10,140 | $ | 11,850 | $ | 8,430 | |||||
Discontinued operations | 148 | 89 | 174 | |||||||
$ | 9,992 | $ | 11,939 | $ | 8,604 |
67 | ||
As of December 31, 2013 there were no accrued balances recorded related to uncertain tax positions.
2012.
7. | Stock-Based Compensation |
no compensation expense related to stock options for the year ended December 31, 2013.
68 | ||
Weighted | ||||||||||||||||
Average | ||||||||||||||||
Weighted | Remaining | |||||||||||||||
Number | Average | Contractual | Aggregate | |||||||||||||
of Options | Exercise Price | Term (Years) | Intrinsic Value | |||||||||||||
Outstanding at January 1, 2010 | 517,905 | $ | 40.92 | |||||||||||||
Granted | — | — | ||||||||||||||
Exercised | — | — | ||||||||||||||
Forfeited/canceled/expired | (125,957 | ) | 47.61 | |||||||||||||
Outstanding at December 31, 2010 | 391,948 | $ | 38.78 | 3.9 | $ | — | ||||||||||
Granted | — | — | ||||||||||||||
Exercised | — | — | ||||||||||||||
Forfeited/canceled/expired | (88,316 | ) | 43.50 | |||||||||||||
Outstanding at December 31, 2011 | 303,632 | $ | 37.40 | 3.6 | $ | 135,886 | ||||||||||
Granted | — | — | ||||||||||||||
Exercised | (9,796 | ) | 27.26 | |||||||||||||
Forfeited/canceled/expired | (33,176 | ) | 61.69 | |||||||||||||
Outstanding at December 31, 2012 | 260,660 | $ | 34.69 | 3.0 | $ | 1,253,039 | ||||||||||
Vested and Exercisable at December 31, 2012 | 260,660 | $ | 34.69 | 3.0 | $ | 1,253,039 |
Weighted | |||||||||||||
Average | |||||||||||||
Weighted | Remaining | Aggregate | |||||||||||
Number of | Average | Contractual | Intrinsic | ||||||||||
Options | Exercise Price | Term (Years) | Value | ||||||||||
Outstanding at January 1, 2011 | 391,948 | $ | 38.78 | ||||||||||
Granted | — | — | |||||||||||
Exercised | — | — | |||||||||||
Forfeited/canceled/expired | (88,316) | 43.50 | |||||||||||
Outstanding at December 31, 2011 | 303,632 | $ | 37.40 | 3.6 | $ | 135,886 | |||||||
Granted | — | — | |||||||||||
Exercised | (9,796) | 27.26 | |||||||||||
Forfeited/canceled/expired | (33,176) | 61.69 | |||||||||||
Outstanding at December 31, 2012 | 260,660 | $ | 34.69 | 3.0 | $ | 1,253,039 | |||||||
Granted | — | — | |||||||||||
Exercised | (8,910) | 29.41 | |||||||||||
Forfeited/canceled/expired | (17,963) | 54.35 | |||||||||||
Outstanding at December 31, 2013 | 233,787 | $ | 33.38 | 2.1 | $ | 4,058,035 | |||||||
Vested and Exercisable at December 31, 2013 | 233,787 | $ | 33.38 | 2.1 | $ | 4,058,035 |
2011.
69 | ||
Weighted | ||||||||
Average | ||||||||
Number of | Grant Date | |||||||
Options | Fair Value | |||||||
Non-vested at January 1, 2010 | 107,270 | $ | 14.81 | |||||
Granted | — | — | ||||||
Vested | (55,537 | ) | 15.66 | |||||
Forfeited/canceled/expired | (4,860 | ) | 13.94 | |||||
Non-vested at December 31, 2010 | 46,873 | $ | 13.88 | |||||
Granted | — | — | ||||||
Vested | (37,150 | ) | 13.73 | |||||
Forfeited/canceled/expired | (440 | ) | 14.48 | |||||
Non-vested at December 31, 2011 | 9,283 | $ | 14.48 | |||||
Granted | — | — | ||||||
Vested | (9,283 | ) | 14.48 | |||||
Forfeited/canceled/expired | — | — | ||||||
Non-vested at December 31, 2012 | — | $ | — |
Saga Communications, Inc.
Notes to Consolidated Financial Statements — (Continued)
Weighted | ||||||
Average | ||||||
Number of | Grant Date | |||||
Options | Fair Value | |||||
Non-vested at January 1, 2011 | 46,873 | $ | 13.88 | |||
Granted | — | — | ||||
Vested | (37,150) | 13.73 | ||||
Forfeited/canceled/expired | (440) | 14.48 | ||||
Non-vested at December 31, 2011 | 9,283 | $ | 14.48 | |||
Granted | — | — | ||||
Vested | (9,283) | 14.48 | ||||
Forfeited/canceled/expired | — | — | ||||
Non-vested at December 31, 2012 | — | $ | — |
Weighted | ||||||||
Average | ||||||||
Grant Date | ||||||||
Shares | Fair Value | |||||||
Outstanding at January 1, 2010 | 49,824 | $ | 23.59 | |||||
Granted | — | — | ||||||
Vested | (18,792 | ) | 26.94 | |||||
Forfeited/canceled/expired | (2,868 | ) | 21.64 | |||||
Outstanding at December 31, 2010 | 28,164 | $ | 21.55 | |||||
Granted | — | — | ||||||
Vested | (14,187 | ) | 23.46 | |||||
Forfeited/canceled/expired | (765 | ) | 19.32 | |||||
Outstanding at December 31, 2011 | 13,212 | $ | 19.61 | |||||
Granted | — | — | ||||||
Vested | (7,641 | ) | 20.82 | |||||
Forfeited/canceled/expired | (40 | ) | 17.97 | |||||
Non-vested and outstanding at December 31, 2012 | 5,531 | $ | 17.97 | |||||
Weighted average remaining contractual life (in years) | .5 |
Weighted | |||||||
Average | |||||||
Grant Date | |||||||
Shares | Fair Value | ||||||
Outstanding at January 1, 2011 | 28,164 | $ | 21.55 | ||||
Granted | — | — | |||||
Vested | (14,187) | 23.46 | |||||
Forfeited/canceled/expired | (765) | 19.32 | |||||
Outstanding at December 31, 2011 | 13,212 | $ | 19.61 | ||||
Granted | — | — | |||||
Vested | (7,641) | 20.82 | |||||
Forfeited/canceled/expired | (40) | 17.97 | |||||
Outstanding at December 31, 2012 | 5,531 | $ | 17.97 | ||||
Granted | 50,062 | 46.51 | |||||
Vested | (5,531) | 17.97 | |||||
Forfeited/canceled/expired | — | — | |||||
Non-vested and outstanding at December 31, 2013 | 50,062 | $ | 46.51 | ||||
Weighted average remaining contractual life (in years) | 2.9 |
70 | ||
8. | Employee Benefit Plans |
2011.
Saga Communications, Inc.
Notes to Consolidated Financial Statements — (Continued)
9. | Related Party Transactions |
$1,382,000.
On December 15, 2010, Mr. Christian agreed to defer approximately $134,000 of his 2011 salary to be paid 100% on January 20, 2012.
On December 16, 2013, Mr. Christian agreed to defer approximately $100,000 of his 2014 salary to be paid 100% on January 16, 2015.
72 | ||
Under the amended TBA, during 2013 we paid Surtsey Media fees of approximately $3,400 per month plus accounting fees and reimbursement of expenses actually incurred in operating the station.
Under the amended Station Agreements, during 2013 we paid fees of approximately $4,500 per month plus accounting fees and reimbursement of expenses actually incurred in operating the station.
73 | ||
10. | Common Stock |
74 | ||
11. | Commitments and Contingencies |
2013 | $ | 1,216 | ||
2014 | 721 | |||
2015 | 582 | |||
2016 | 446 | |||
2017 | 283 | |||
Thereafter | 2,929 | |||
$ | 6,177 |
2014 | $ | 1,330 | ||
2015 | 1,150 | |||
2016 | 913 | |||
2017 | 763 | |||
2018 | 645 | |||
Thereafter | 3,921 | |||
$ | 8,722 |
2013 | $ | 616 | ||
2014 | 507 | |||
2015 | 255 | |||
2016 | 37 | |||
2017 | 33 | |||
Thereafter | 21 | |||
$ | 1,469 | |||
Amounts due within one year (included in accounts payable) | 616 | |||
$ | 853 |
2014 | $ | 622 | ||
2015 | 540 | |||
2016 | 355 | |||
2017 | 188 | |||
2018 | 40 | |||
Thereafter | 40 | |||
$ | 1,785 | |||
Amounts due within one year (included in accounts payable) | 622 | |||
$ | 1,163 |
75 | ||
12. | Fair Value Measurements |
Interest on the Credit Facility is at a variable rate, and as such the debt obligation outstanding approximates fair value and is considered a level 2.
In
Saga Communications, Inc.
Notes to Consolidated Financial Statements — (Continued)
13. | Segment Information |
76 | ||
Corporate | Assets Held | |||||||||||||||||||
Radio | Television | and Other | For Sale | Consolidated | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Year ended December 31, 2012: | ||||||||||||||||||||
Net operating revenue | $ | 111,763 | $ | 18,496 | $ | — | $ | 130,259 | ||||||||||||
Station operating expense | 77,992 | 12,296 | — | 90,288 | ||||||||||||||||
Corporate general and administrative | — | — | 7,960 | 7,960 | ||||||||||||||||
Operating income (loss) from continuing operations | $ | 33,771 | $ | 6,200 | $ | (7,960 | ) | $ | 32,011 | |||||||||||
Depreciation and amortization | $ | 5,222 | $ | 1,411 | $ | 225 | $ | 6,858 | ||||||||||||
Capital additions | $ | 3,786 | $ | 977 | $ | 46 | $ | 4,809 | ||||||||||||
Broadcast licenses, net | $ | 80,773 | $ | 9,588 | $ | — | $ | 90,361 | ||||||||||||
Total assets at December 31, 2012 | $ | 148,163 | $ | 23,013 | $ | 23,261 | $ | 2,893 | $ | 197,330 | ||||||||||
Corporate | Assets Held | |||||||||||||||||||
Radio | Television | and Other | For Sale | Consolidated | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Year ended December 31, 2011: | ||||||||||||||||||||
Net operating revenue | $ | 108,938 | $ | 16,335 | $ | — | $ | 125,273 | ||||||||||||
Station operating expense | 79,130 | 11,799 | — | 90,929 | ||||||||||||||||
Corporate general and administrative | — | — | 7,590 | 7,590 | ||||||||||||||||
Operating income (loss) from continuing operations | $ | 29,808 | $ | 4,536 | $ | (7,590 | ) | $ | 26,754 | |||||||||||
Depreciation and amortization | $ | 5,518 | $ | 1,351 | $ | 232 | $ | 7,101 | ||||||||||||
Capital additions | $ | 3,990 | $ | 1,268 | $ | 152 | $ | 5,410 | ||||||||||||
Broadcast licenses, net | $ | 80,768 | $ | 9,588 | $ | — | $ | 90,356 | ||||||||||||
Total assets at December 31, 2011 | $ | 148,973 | $ | 23,712 | $ | 14,542 | $ | 3,107 | $ | 190,334 | ||||||||||
Corporate | |||||||||||||
Radio | Television | and Other | Consolidated | ||||||||||
(In thousands) | |||||||||||||
Year ended December 31, 2013: | |||||||||||||
Net operating revenue | $ | 109,818 | $ | 19,660 | $ | — | $ | 129,478 | |||||
Station operating expense | 79,933 | 13,044 | — | 92,977 | |||||||||
Corporate general and administrative | — | — | 8,172 | 8,172 | |||||||||
Impairment of intangible assets | 2,033 | — | — | 2,033 | |||||||||
Operating income (loss) from continuing operations | $ | 27,852 | $ | 6,616 | $ | (8,172) | $ | 26,296 | |||||
Depreciation and amortization | $ | 5,119 | $ | 1,421 | $ | 228 | $ | 6,768 | |||||
Capital additions | $ | 3,884 | $ | 872 | $ | 396 | $ | 5,152 | |||||
Broadcast licenses, net | $ | 78,872 | $ | 9,588 | $ | — | $ | 88,460 | |||||
Total assets at December 31, 2013 | $ | 143,927 | $ | 23,274 | $ | 26,023 | $ | 193,224 |
Corporate | ||||||||||||||
Radio | Television | and Other | Consolidated | |||||||||||
(In thousands) | ||||||||||||||
Year ended December 31, 2012: | ||||||||||||||
Net operating revenue | $ | 111,763 | $ | 18,496 | $ | — | $ | 130,259 | ||||||
Station operating expense | 77,992 | 12,296 | — | 90,288 | ||||||||||
Corporate general and administrative | — | — | 7,960 | 7,960 | ||||||||||
Operating income (loss) from continuing operations | $ | 33,771 | $ | 6,200 | $ | (7,960) | $ | 32,011 | ||||||
Depreciation and amortization | $ | 5,222 | $ | 1,411 | $ | 225 | $ | 6,858 | ||||||
Capital additions | $ | 3,786 | $ | 977 | $ | 46 | $ | 4,809 | ||||||
Broadcast licenses, net | $ | 80,773 | $ | 9,588 | $ | — | $ | 90,361 | ||||||
Total assets at December 31, 2012 | $ | 148,163 | $ | 23,013 | $ | 26,154 | * | $ | 197,330 |
* | Includes $2,893 of Assets held for sale. |
Corporate | |||||||||||||
Radio | Television | and Other | Consolidated | ||||||||||
(In thousands) | |||||||||||||
Year ended December 31, 2011: | |||||||||||||
Net operating revenue | $ | 108,938 | $ | 16,335 | $ | — | $ | 125,273 | |||||
Station operating expense | 79,130 | 11,799 | — | 90,929 | |||||||||
Corporate general and administrative | — | — | 7,590 | 7,590 | |||||||||
Operating income (loss) from continuing operations | $ | 29,808 | $ | 4,536 | $ | (7,590) | $ | 26,754 | |||||
Depreciation and amortization | $ | 5,518 | $ | 1,351 | $ | 232 | $ | 7,101 | |||||
Capital additions | $ | 3,990 | $ | 1,268 | $ | 152 | $ | 5,410 |
77 | ||
Corporate | ||||||||||||||||
Radio | Television | and Other | Consolidated | |||||||||||||
(In thousands) | ||||||||||||||||
Year ended December 31, 2010: | ||||||||||||||||
Net operating revenue | $ | 109,891 | $ | 15,942 | $ | — | $ | 125,833 | ||||||||
Station operating expense | 79,012 | 11,323 | — | 90,335 | ||||||||||||
Corporate general and administrative | — | — | 7,274 | 7,274 | ||||||||||||
Operating income (loss) from continuing operations | $ | 30,879 | $ | 4,619 | $ | (7,274 | ) | $ | 28,224 | |||||||
Depreciation and amortization | $ | 5,772 | $ | 1,339 | $ | 224 | $ | 7,335 | ||||||||
Capital additions | $ | 3,295 | $ | 788 | $ | 58 | $ | 4,141 |
14. | Quarterly Results of Operations (Unaudited) |
March 31, | June 30, | September 30, | December 31, | |||||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||||||||||||||
Net operating revenue | $ | 29,323 | $ | 28,248 | $ | 32,986 | $ | 32,764 | $ | 32,409 | $ | 32,027 | $ | 35,541 | $ | 32,234 | ||||||||||||||||
Station operating expenses | 22,360 | 22,134 | 21,959 | 23,016 | 22,379 | 22,939 | 23,590 | 22,840 | ||||||||||||||||||||||||
Corporate G&A | 1,949 | 1,940 | 1,940 | 1,949 | 1,910 | 1,965 | 2,161 | 1,736 | ||||||||||||||||||||||||
Operating income from continuing operations | 5,014 | 4,174 | 9,087 | 7,799 | 8,120 | 7,123 | 9,790 | 7,658 | ||||||||||||||||||||||||
Other (income) expenses: | ||||||||||||||||||||||||||||||||
Interest expense | 528 | 1,157 | 458 | 1,034 | 381 | 646 | 366 | 583 | ||||||||||||||||||||||||
Write-off debt issuance costs | — | — | — | 1,326 | — | — | — | — | ||||||||||||||||||||||||
Other | (2 | ) | 63 | (8 | ) | (95 | ) | 145 | 27 | 144 | 524 | |||||||||||||||||||||
Income from continuing operations before tax | 4,488 | 2,954 | 8,637 | 5,534 | 7,594 | 6,450 | 9,280 | 6,551 | ||||||||||||||||||||||||
Income tax provision | 1,785 | 1,206 | 3,438 | 2,251 | 3,227 | 2,473 | 3,489 | 2,674 | ||||||||||||||||||||||||
Income from continuing operations, net of tax | 2,703 | 1,748 | 5,199 | 3,283 | 4,367 | 3,977 | 5,791 | 3,877 | ||||||||||||||||||||||||
Income (loss) from discontinued operations, net of tax | 2 | (86 | ) | (67 | ) | (113 | ) | (39 | ) | (283 | ) | (31 | ) | 228 | ||||||||||||||||||
Net income | $ | 2,705 | $ | 1,662 | $ | 5,132 | $ | 3,170 | $ | 4,328 | $ | 3,694 | $ | 5,760 | $ | 4,105 | ||||||||||||||||
Basic earnings (loss) per share: | ||||||||||||||||||||||||||||||||
From continuing operations | $ | .48 | $ | .31 | $ | .92 | $ | .58 | $ | .77 | $ | .70 | $ | 1.02 | $ | .69 | ||||||||||||||||
From discontinued operations | — | (.02 | ) | (.01 | ) | (.02 | ) | (.01 | ) | (.05 | ) | — | .04 | |||||||||||||||||||
Earnings per share | $ | .48 | $ | .29 | $ | .91 | $ | .56 | $ | .76 | $ | .65 | $ | 1.02 | $ | .73 | ||||||||||||||||
Weighted average common shares | 5,658 | 5,649 | 5,661 | 5,656 | 5,661 | 5,656 | 5,663 | 5,656 | ||||||||||||||||||||||||
Diluted earnings (loss) per share: | ||||||||||||||||||||||||||||||||
From continuing operations | $ | .48 | $ | .31 | $ | .92 | $ | .58 | $ | .77 | $ | .70 | $ | 1.02 | $ | .68 | ||||||||||||||||
From discontinued operations | — | (.02 | ) | (.01 | ) | (.02 | ) | (.01 | ) | (.05 | ) | (.01 | ) | .04 | ||||||||||||||||||
Diluted earnings per share | $ | .48 | $ | .29 | $ | .91 | $ | .56 | $ | .76 | $ | .65 | $ | 1.01 | $ | .72 | ||||||||||||||||
Weighted average common and common equivalent shares | 5,678 | 5,657 | 5,663 | 5,660 | 5,670 | 5,661 | 5,692 | 5,663 |
The operating results
March 31, | June 30, | September 30, | December 31, | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||||||||
Net operating revenue | $ | 28,957 | $ | 29,323 | $ | 33,832 | $ | 32,986 | $ | 32,929 | $ | 32,409 | $ | 33,760 | $ | 35,541 | ||||||||||
Station operating expenses | 22,088 | 22,360 | 23,493 | 21,959 | 23,598 | 22,379 | 23,798 | 23,590 | ||||||||||||||||||
Corporate G&A | 1,948 | 1,949 | 1,982 | 1,940 | 2,051 | 1,910 | 2,191 | 2,161 | ||||||||||||||||||
Impairment of intangible assets | — | — | — | — | — | — | 2,033 | — | ||||||||||||||||||
Operating income from continuing operations | 4,921 | 5,014 | 8,357 | 9,087 | 7,280 | 8,120 | 5,738 | 9,790 | ||||||||||||||||||
Other (income) expenses: | ||||||||||||||||||||||||||
Interest expense | 358 | 528 | 357 | 458 | 308 | 381 | 282 | 366 | ||||||||||||||||||
Other | 25 | (2) | 66 | (8) | (144) | 145 | 2 | 144 | ||||||||||||||||||
Income from continuing operations before tax | 4,538 | 4,488 | 7,934 | 8,637 | 7,116 | 7,594 | 5,454 | 9,280 | ||||||||||||||||||
Income tax provision | 1,812 | 1,785 | 3,130 | 3,438 | 2,820 | 3,227 | 2,230 | 3,489 | ||||||||||||||||||
Income from continuing operations, net of tax | 2,726 | 2,703 | 4,804 | 5,199 | 4,296 | 4,367 | 3,224 | 5,791 | ||||||||||||||||||
Income (loss) from discontinued operations, net of tax | 223 | 2 | — | (67) | — | (39) | — | (31) | ||||||||||||||||||
Net income | $ | 2,949 | $ | 2,705 | $ | 4,804 | $ | 5,132 | $ | 4,296 | $ | 4,328 | $ | 3,224 | $ | 5,760 | ||||||||||
Basic earnings (loss) per share: | ||||||||||||||||||||||||||
From continuing operations | $ | ..48 | $ | ..48 | $ | ..85 | $ | ..92 | $ | ..76 | $ | ..77 | $ | ..56 | $ | 1.02 | ||||||||||
From discontinued operations | ..04 | — | — | (.01) | — | (.01) | — | — | ||||||||||||||||||
Earnings per share | $ | ..52 | $ | ..48 | $ | ..85 | $ | ..91 | $ | ..76 | $ | ..76 | $ | ..56 | $ | 1.02 | ||||||||||
Weighted average common shares | 5,673 | 5,658 | 5,683 | 5,661 | 5,686 | 5,661 | 5,686 | 5,663 | ||||||||||||||||||
Diluted earnings (loss) per share: | ||||||||||||||||||||||||||
From continuing operations | $ | ..47 | $ | ..48 | $ | ..84 | $ | ..92 | $ | ..75 | $ | ..77 | $ | ..56 | $ | 1.02 | ||||||||||
From discontinued operations | ..04 | — | — | (.01) | — | (.01) | — | (.01) | ||||||||||||||||||
Diluted earnings per share | $ | ..51 | $ | ..48 | $ | ..84 | $ | ..91 | $ | ..75 | $ | ..76 | $ | ..56 | $ | 1.01 | ||||||||||
Weighted average common and common equivalent shares | 5,738 | 5,678 | 5,745 | 5,663 | 5,754 | 5,670 | 5,751 | 5,692 |
15. | Subsequent Event |
approximately $715,000.
78 | ||
SAGA COMMUNICATIONS, INC. | ||
By: | /s/ Edward K. Christian | |
Edward K. Christian | ||
President |
Signatures | ||
|
| |
/s/
Edward K. Christian |
President, Chief Chairman of the Board | |
/s/
Samuel D. Bush | Senior Vice President, Chief | |
/s/ Catherine A. Bobinski Catherine A. Bobinski | Senior Vice President/Finance, Chief Accounting Officer and Corporate Controller | |
/s/ Clarke R. Brown, Jr. Clarke R. Brown, Jr. | Director | |
/s/
Timothy J. Clarke | Director | |
/s/
Roy F. Coppedge | Director | |
/s/
David B. Stephens | Director |
EXHIBIT INDEX
| ||
/s/ Gary G. Stevens Gary G. Stevens | Director |
79 | ||
Exhibit No. | Description | |||||
3(a) | 3 | Second Restated Certificate of Incorporation, restated as of December 12, 2003. | ||||
6 | Certificate of Amendment to the Second Restated Certificate of Incorporation. | |||||
4 | Bylaws, as amended May 23, 2007. | |||||
8 | Credit Agreement dated as of June 13, 2011 among the Company and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, the Other Lenders party thereto, Merrill Lynch Pierce, Fenner & Smith, Incorporated and J.P. Morgan Securities LLC, as Joint Lead Arrangers and Joint Book Managers, JPMorgan Chase Bank, N.A., as Syndication Agent, Huntington National Bank, as Documentation Agent, and certain other financial institutions as party thereto. | |||||
4(b) | 9 | First Amendment to Credit Agreement dated as of May 31, 2013. | ||||
10(a) | 1 | Summary of Executive Insured Medical Reimbursement Plan. | ||||
10(b) | 2 | Saga Communications, Inc. 2003 Employee Stock Option Plan. | ||||
7 | Chief Executive Officer Annual Incentive Plan. | |||||
10 | Second Amended and Restated Saga Communications, Inc. 2005 Incentive Compensation Plan | |||||
10(e) | 11 | Form of Stock Option Agreement under the Second Amended and Restated Saga Communications, Inc. 2005 Incentive Compensation Plan. | ||||
11 | Form of Restricted Stock Option Agreement | |||||
Employment Agreement of Edward K. Christian dated as of June 17, 2011. | ||||||
5 | Change in Control Agreement of Samuel D. Bush dated as of December 28, 2007. | |||||
5 | Change in Control Agreement of Steven J. Goldstein dated as of December 28, 2007. | |||||
5 | Change in Control Agreement of Warren S. Lada dated as of December 28, 2007. | |||||
5 | Change in Control Agreement of Marcia K. Lobaito dated as of December 28, 2007. | |||||
21 | * | Subsidiaries. | ||||
23.1 | * | Consent of Ernst & Young LLP. | ||||
31.1 | * | Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||||
31.2 | * | Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||||
32 | * | Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350 and Rule 13-14(b) of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||
101.INS | * | XBRL Instance Document | ||||
101.SCH | * | XBRL Taxonomy Extension Schema Document | ||||
101.CAL | * | XBRL Taxonomy Calculation Linkbase Document | ||||
101.DEF | * | XBRL Taxonomy Extension Definition Linkbase Document | ||||
101.LAB | * | XBRL Taxonomy Extension Label Linkbase Document | ||||
101.PRE | * | XBRL Taxonomy Extension Presentation Linkbase Document |
* Filed herewith.
80 | ||
* | Filed herewith. | ||
1 | Exhibit filed with the Company’s Registration Statement on Form S-1 (File No. 33-47238) filed on December 10, 1992 and incorporated by reference herein. |
2 | Exhibit filed with the Company’s Form 10-Q for the quarter ended June 30, 2003 and incorporated by reference herein. |
3 | Exhibit filed with the Company’s Registration Statement on Form 8-A (File No. 001-11588) filed on January 6, 2004 and incorporated by reference herein. |
4 |
Exhibit filed with the Company’s Form 10-K for the year ended December 31, 2007 and incorporated by reference herein. |
5 | Exhibit filed with the Company’s Form 8-K filed on January 4, 2008 and incorporated by reference herein. |
6 | Exhibit filed with the Company’s Form 8-K filed on January 29, 2009 and incorporated by reference herein. |
7 | Exhibit filed with the Company’s Proxy Statement for the 2010 Annual Meeting of Stockholders and incorporated by reference herein. |
8 | Exhibit filed with the Company’s Form 10-Q for the quarter ended June 30, 2011 and incorporated by reference herein. | |||
9 | Exhibit filed with the Company’s Form 8-K filed on May 31, 2013 and incorporated by reference herein. | |||
10 | Exhibit filed as Appendix A to the Company’s Consent Solicitation (File No. 001-11588) filed on September 17, 2013 and incorporated by reference herein. | |||
11 | Exhibit filed with the Company’s Form 8-K filed on October 16, 2013 and incorporated by reference herein. | |||
81 | ||