Regent Communications, Inc. News
Regent Reports First Quarter 2008 Results
For the first quarter of 2008, net broadcast revenues decreased 3.1% to approximately
Below are the Company's condensed consolidated statements of operations prepared in accordance with generally accepted accounting principles ("GAAP") (in thousands, except per share amounts):
Three Months Ended March 31, 2008 2007 Net broadcast revenues $20,833 $21,508 Station operating expenses 14,841 15,213 Corporate general and administrative expenses 1,889 2,014 Depreciation and amortization 1,012 1,843 Gain on sale of stations (540) - Loss on sale of long-lived assets and other 21 - Operating income 3,610 2,438 Interest expense (3,646) (4,090) Unrealized loss on derivative transactions, net of realized gain (5,675) (590) Other (expense) income, net (12) 52 Loss from continuing operations before income taxes (5,723) (2,190) Income tax benefit 2,354 957 Loss from continuing operations (3,369) (1,233) Income from discontinued operations, net of income taxes 359 34 Net loss ($3,010) ($1,199) BASIC AND DILUTED NET LOSS PER COMMON SHARE: Loss from continuing operations ($0.09) ($0.03) Discontinued operations 0.01 0.00 Net loss ($0.08) ($0.03) Weighted average number of common shares: Basic 38,608 38,205 Diluted 38,608 38,205
Non-GAAP Financial Measures
In its assessment of its financial performance, Regent utilizes certain financial measures that are not calculated in accordance with GAAP. The non-GAAP performance and liquidity measures presented in this release are station operating income, same station net broadcast revenue and same station operating income, and free cash flow. Regent's management believes these non-GAAP measures provide useful information to investors, as discussed in more detail below, regarding Regent's financial condition and results of operations and liquidity; however, these measures should not be considered as an alternative to net broadcast revenue, operating income, net loss, or cash provided by operating activities as an indicator of Regent's performance or liquidity.
Station Operating Income
First quarter 2008 station operating income decreased 4.8% to
Three Months Ended Station Operating Income March 31, 2008 2007 Operating income $3,610 $2,438 Plus: Depreciation and amortization 1,012 1,843 Corporate general and administrative expenses 1,889 2,014 Loss on sale of long-lived assets and other 21 - Less: Gain on sale of stations 540 - Station operating income $5,992 $6,295
Same Station Results
On a same station basis, which includes results from stations owned and operated in continuing operations during the entire first quarter for both the 2008 and 2007 periods and excludes barter, net broadcast revenue for the first quarter of 2008 decreased 2.6% to
Three Months Ended Same Station Net Broadcast Revenue March 31, 2008 2007 Net broadcast revenue $20,833 $21,508 Less: Net results of stations not included in same station category 27 89 Barter transactions 688 764 Same station net broadcast revenue $20,118 $20,655 Three Months Ended Same Station Operating Income March 31, 2008 2007 Operating income $3,610 $2,438 Plus: Depreciation and amortization 1,012 1,843 Corporate general and administrative expenses 1,889 2,014 Loss on sale of long-lived assets and other 21 - Less: Gain on sale of long-lived assets 540 - Station operating income $5,992 $6,295 Adjustments: Net results of stations not included in same station category 81 202 Barter transactions (88) (85) Same station operating income $5,985 $6,412
Free Cash Flow
For the first quarter of 2008, free cash flow increased to approximately
Three Months Ended March 31, Free Cash Flow 2008 2007 Net loss ($3,010) ($1,199) Add: Depreciation and amortization 1,012 1,879 Non-cash interest expense 130 93 Loss on sale of long-lived assets 7 - Non cash loss on sale of radio stations - - Unrealized loss on derivative transactions 5,684 842 Other non-cash items, net (1) 239 159 Less: Maintenance and digital technology capital expenditures 431 841 Non cash gain on sale of radio stations 1,192 - Non-cash income tax benefit 2,025 910 Free cash flow $414 $23 (1) Includes non-cash compensation and barter.
The Company believes the most directly comparable GAAP measure to free cash flow is net cash provided by operating activities. The following table reconciles net cash provided by operating activities to free cash flow (in thousands):
Three Months Ended March 31, Free Cash Flow 2008 2007 Net cash provided by operating activities $2,292 $2,007 Less: Maintenance & digital technology capital expenditures 431 841 Changes in operating assets and liabilities 1,292 965 Bad debt expense 155 178 Free cash flow $414 $23
Selected Financial Data
The Company's cash balance and consolidated debt balance at
Outlook
Regent has adopted a policy to provide guidance to investors regarding our financial prospects. The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially. Regent undertakes no obligation to update these statements. The Company believes that forward-looking same station net broadcast revenue and station operating income disclosures are important to investors, analysts and other users of media financial information because it enables the users of such information to compare the performance of various sized companies against industry standards.
Regent expects second quarter 2008 reported net broadcast revenues and station operating income of
Three Months Ending June 30, 2008 Station Operating Income Guidance Range Lower Upper (in millions) Operating income $6.5 $6.9 Plus: Depreciation and amortization 1.1 1.1 Corporate general and administrative expenses 2.0 2.0 Station operating income $9.6 $10.0
The Company expects same station net broadcast revenue to increase two to four percent for the second quarter of 2008 compared to the second quarter of 2007, due to both favorable timing of NTR events and growth in our core business. Capital expenditures are expected to be approximately
Regent Communications will host a teleconference to discuss its first quarter results on
Regent Communications, Inc. is a radio broadcasting company focused on acquiring, developing and operating radio stations in mid-sized markets. Regent owns and operates 62 stations located in 13 markets. The Company's shares are traded on the Nasdaq Stock Market under the symbol "RGCI."
This press release includes certain forward-looking statements with respect to Regent Communications, Inc. for which it claims the protections of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve certain risks and uncertainties and include statements preceded by, followed by or that include words such as "anticipate," "believe," "plan," "estimate," "expect," "intend," "project" and other similar expressions. Although Regent believes expectations reflected in these forward-looking statements are based on reasonable assumptions, such statements are influenced by financial position, business strategy, budgets, projected costs, and plans and objectives of management for future operations. Actual results and developments may differ materially from those conveyed in the forward-looking statements based on various factors including, but not limited to: changes in economic, business and market conditions affecting the radio broadcast industry, the markets in which we operate, and nationally; increased competition for attractive radio properties and advertising dollars; fluctuations in the cost of operating radio properties; the ability to manage growth; the ability to integrate these and other acquisitions; and changes in the regulatory climate affecting radio broadcast companies, including uncertainties surrounding recent Federal Communication Commission rules regarding broadcast ownership limits. Further information on other factors that could affect the financial results of Regent Communications, Inc. is included in Regent's filings with the Securities and Exchange Commission. These documents are available free of charge at the Commission's website at http://www.sec.gov and/or from Regent Communications, Inc.
SOURCE Regent Communications, Inc.
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