Saga Communications Inc. is a broadcasting company whose business is devoted to acquiring developing and operating broadcast properties. The company owns or operates broadcast properties in markets including FM and AM radio stations state radio networks farm radio network TV stations and an equity interest in FM radio stations serving Reykjavik Iceland. Additionally Saga has entered into an Asset Purchase Agreement with Clear Channel Communications to purchase the assets of WHMP-AM/FM Northampton Massachusetts. (PRESS RELEASE) Saga Communications Inc. has a market cap of $37.8 million; its shares were traded at around $8.84 with a P/E ratio of 5.4 and P/S ratio of 0.3.
Highlight of Business Operations:For the three months ended June 30, 2009, consolidated net operating revenue was $31,637,000 compared with $37,342,000 for the three months ended June 30, 2008, a decline of approximately $5,705,000 or 15%. We had a decrease of approximately $6,089,000 in net operating revenue generated by stations that we owned or operated for the comparable period in 2008 (same station), and an increase in net operating revenue of approximately $384,000 attributable to stations we did not own and operate for the entire comparable period. Same station gross national revenue and same station gross local revenue decreased approximately $1,840,000 and $4,959,000, respectively. Same station gross political revenue decreased approximately $236,000. The decrease in both gross national and gross local revenue was primarily the result of revenue downturns in most of our markets. There were considerable revenue declines in our Columbus, OH (25%), Manchester, NH (31%), Milwaukee, WI (20%), Norfolk, VA (30%), and Portland, ME (24%) markets. Our revenue has been directly affected by the ongoing economic conditions. There has been an overall decline in advertising revenue as a result of the slowdown in the economy and advertising spending in general. We expect this trend to continue throughout 2009. The decrease in gross political revenue was directly attributable to advertising in the prior year for the 2008 presidential, congressional, senatorial and local races.
Station operating expense was $23,295,000 for the three months ended June 30, 2009, compared with $27,246,000 for the three months ended June 30, 2008, a decrease of $3,951,000 or 15%. Same station operating expense decreased $4,123,000 from the prior year quarter. The decrease in same station operating expense primarily resulted from cost reduction initiatives implemented in the first quarter, and reduced commission expense as a result of the decline in net operating revenue. These reductions were partially offset by increased depreciation expense as a result of a change in estimated useful lives of television analog equipment. Station operating expense increased approximately $172,000 from stations that we did not own or operate for the comparable period in 2008.
Operating income for the three months ended June 30, 2009 was $6,184,000 compared to $7,746,000 for the three months ended June 30, 2008, a decrease of approximately $1,562,000. The decrease was the result of the significant declines in net operating revenue and station operating expense, described in detail above. Additionally, operating income in the prior year quarter included a $224,000 gain recognized from the exchange of equipment under an arrangement the Company has with Sprint Nextel Corporation. Current year operating income was positively affected by a $416,000 or 16% decrease in corporate general and administrative charges. The decrease in corporate general and administrative charges was primarily attributable to reductions in travel and travel related expenses, including cost savings from the cancellation of the Companys annual managers meeting.
We generated net income of approximately $2,674,000 ($.63 per share on a fully diluted basis) during the three months ended June 30, 2009, compared with $3,460,000 ($.70 per share on a fully diluted basis) for the three months ended Ju
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