Fisher Communications Inc. (FSCI) filed Quarterly Report for the period ended 2009-09-30.
Fisher Communications Inc. is a media and communications company engaged primarily in television and radio broadcasting operations television programming development and production and satellite teleport operations. The company is engaged in real estate investment and management and flour milling and bakery products distribution. Also the company is seeking to sell our flour milling and bakery products distribution businesses. Fisher Communications Inc. has a market cap of $179.5 million; its shares were traded at around $20.51 with a P/E ratio of 9.1 and P/S ratio of 1. Fisher Communications Inc. had an annual average earning growth of 72.5% over the past 5 years.
Highlight of Business Operations:
We have incurred approximately $6.8 million in remediation and equipment replacement costs related to the Fisher Plaza fire, including remediation expenses of $3.2 million, capital expenditures of $2.1 million and the loss of fixed assets destroyed by the fire of $1.5 million. We are recording the Fisher Plaza fire expenses as incurred, and recording insurance reimbursements within operating results in the period the reimbursements are considered probable and certain. Insurance reimbursements of $725,000 were recorded in the third quarter of 2009.
We currently anticipate recording approximately $1 million to $2 million of additional remediation expenses and approximately $2 million to $3 million of additional capital expenditures in the fourth quarter of 2009 related to the Fisher Plaza fire.
Repurchase of Senior Notes During the first half of 2009, we repurchased $28.0 million aggregate principal amount of our 8.625% senior notes due in 2014 (Senior Notes) for a total consideration of $24.4 million in cash plus accrued interest of $637,000. We recorded a gain on extinguishment of debt, net of a charge for related unamortized debt issuance costs of $557,000, resulting in a net gain of approximately $3.0 million on the extinguishment of debt for the nine months ended September 30, 2009. We did not repurchase any of our Senior Notes during the three months ended September 30, 2009 and the three and nine months ended September 30, 2008.
Sale of Safeco Corporation Common Stock During the third quarter of 2008, we sold 753,720 shares of Safeco Corporation common stock. The shares were sold at an average price of $65.38 per share, resulting in pre-tax net proceeds of $49.3 million. The book basis of the shares sold totaled $256,000, resulting in a pre-tax gain on sale of $49.0 million.
Expiration of Seattle Mariners Radio Rights Agreement In July 2008, we announced that we would not renew our radio rights agreement with the Seattle Mariners (the Mariners Agreement). Accordingly, the 2008 season was the final year of our commitments under the Mariners Agreement. Our results for the three and nine months ended September 30, 2008, reflect $4.1 million and $8.7 million of advertising revenue, respectively, and $7.7 million and $15.8 million of expenses, respectively, related to the Mariners Agreement. No such advertising revenue or expenses are reflected in our results for the nine months ended September 30, 2009.
Termination of National Advertising Representation Agreement In April 2008, we terminated the agreement with our national advertising representation firm. The successor firm will satisfy our contractual termination obligation to the predecessor firm with no cash payment made by us. In the second quarter of 2008, we recognized a net non-cash charge of $5.0 million to selling, general and administrative expenses, and we are amortizing the related net liability as a non-cash benefit over the five-year term of the new agreement. We recognized a $365,000 and $1.1 million benefit due to this amortization for the three and nine months ended September 30, 2009, respectively. In 2008, we recognized a $365,000 and $898,000 benefit due to this amortization for the three and nine months ended September 30, 2008, respectively.