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Fisher Communications, Inc. (NASDAQ:FSCI) today announced financial results for the second quarter and year-to-date periods ended June 30, 2006.
Fisher Communications reported income from continuing operations of $1.8 million for the three months ended June 30, 2006, compared to a loss from continuing operations for the three months ended June 30, 2005 of $1.5 million. Including income from discontinued operations amounting to $476,000, second quarter 2006 consolidated net income was $2.3 million. Including income from discontinued operations of $372,000, second quarter 2005 consolidated net loss was $1.1 million.
Income from continuing operations for the six months ended June 30, 2006 was $5,000, compared to a loss from continuing operations for the six months ended June 30, 2005 of $6.6 million. Including income from discontinued operations amounting to $562,000; six-month 2006 consolidated net income was $567,000. Including income from discontinued operations of $410,000, six-month 2005 consolidated net loss was $6.2 million.
As announced in May 2006, the Company signed a definitive agreement to sell its twenty-four small-market radio stations located in Montana and eastern Washington for $33.3 million. The operating results for this group of stations have been reported as discontinued operations due to the pending sale, which is subject to FCC approval and certain other conditions.
"Again, we gained solid revenue and realized operating improvements in the second quarter and first half of 2006, especially in our large-market stations," stated Colleen Brown, President and CEO of Fisher Communications. These increases in revenue occurred in both local and national broadcasting revenue categories. The Company's two ABC-affiliated television stations accounted for approximately 51% of the Company's total year-to-date 2006 revenue from continuing operations. Total revenue from continuing operations increased $6.1 million, or 9 percent, in the first half of 2006, in comparison to the first half of 2005.
Also announced in May 2006, the Company closed the purchase of two Idaho low-power television stations for an amount of $1.0 million, and paid a $3.5 million deposit toward the purchase of two Oregon television stations for $19.3 million. These transactions were initially announced in December 2005.
In June 2006, the Company announced an agreement to purchase the stock of African-American Broadcasting of Bellevue, Inc., licensee of television station KWOG, in Bellevue, Washington. Fisher purchased 25% of the stock for $4.0 million in conjunction with the execution of a Stock Purchase Agreement and a related local marketing agreement with a commencement date contingent upon certain events.
In July 2006, the Company announced that it entered into a local marketing agreement to manage four low-power television stations located in Eastern Washington, and an option agreement whereby Fisher has the right to acquire the stations until June 30, 2007. The stations currently provide programming to the Yakima-Pasco-Richland-Kennewick television market in Washington through an affiliation with Univision.
Commenting on the transactions, Brown said, "By selling our small-market radio stations, we are able to focus on increasing the synergies and operating performance of our remaining cluster of Northwest stations. The combined group of Spanish-language television stations will provide Fisher the opportunity to obtain duopoly economics in markets in which we currently operate, as well as serve our fast growing Hispanic population."
Fisher Communications, Inc. is a Seattle-based integrated media company. Its eleven network-affiliated television stations, and a twelfth station 50% owned by Fisher Communications, are located in Washington, Oregon, and Idaho, and its 27 radio stations broadcast in Washington and Montana. It also owns and operates Fisher Plaza, a facility located near downtown Seattle.
FISHER COMMUNICATIONS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per-share amounts) Unaudited Six months Three months ended ended June 30 June 30 2006 2005 2006 2005 ---------------- ----------------- Revenue $71,271 $65,178 $40,190 $36,865 Costs and expenses Cost of services sold 34,734 35,915 19,632 19,947 Selling expenses 12,267 11,260 6,654 6,355 General and administrative expenses 14,183 16,026 6,456 7,060 Depreciation and amortization 5,027 7,619 2,511 3,558 ------------------------------- ---------------------------------- 66,211 70,820 35,253 36,920 ------------------------------- ---------------------------------- Income (loss) from operations 5,060 (5,642) 4,937 (55) Other income, net 1,767 1,754 881 923 Interest expense (6,822) (6,775) (3,368) (3,404) ------------------------------- ---------------------------------- Income (loss) from continuing operations before income taxes 5 (10,663) 2,450 (2,536) Provision (benefit) for federal and state income taxes - (4,095) 658 (1,074) ------------------------------- ---------------------------------- Income (loss) from continuing operations 5 (6,568) 1,792 (1,462) Income from discontinued operations, net of income taxes 562 410 476 372 ------------------------------- ---------------------------------- Net income (loss) $567 $(6,158) $2,268 $(1,090) ------------------------------- ---------------------------------- Income (loss) per share: From continuing operations $0.00 $(0.76) $0.21 $(0.17) From discontinued operations 0.07 0.05 0.05 0.04 ------------------------------- ---------------------------------- Net income (loss) per share $0.07 $(0.71) $0.26 $(0.13) ------------------------------- ---------------------------------- Income (loss) per share assuming dilution: From continuing operations $0.00 $(0.76) $0.21 $(0.17) From discontinued operations 0.07 0.05 0.05 0.04 ------------------------------- ---------------------------------- Net income (loss) per share $0.07 $(0.71) $0.26 $(0.13) ------------------------------- ---------------------------------- Weighted average shares outstanding 8,708 8,658 8,710 8,690 Weighted average shares outstanding assuming dilution 8,716 8,658 8,719 8,690 FISHER COMMUNICATIONS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS June 30 Dec. 31 (in thousands) Unaudited 2006 2005 ---------------------------------------------------------------------- Assets Current assets $49,038 $60,253 Marketable securities, at market value 169,632 170,053 Other assets 76,040 65,775 Property, plant and equipment, net 143,970 144,312 ---------------------------------------------------------------------- Total assets $438,680 $440,393 ---------------------------------------------------------------------- Liabilities and stockholders' equity Current liabilities $19,868 $24,691 Long-term debt 150,000 150,000 Deferred income taxes 31,786 31,381 Other liabilities 26,638 24,700 ---------------------------------------------------------------------- Total liabilities 228,292 230,772 ---------------------------------------------------------------------- Stockholders' equity, other than accumulated other comprehensive income 103,235 102,193 Accumulated other comprehensive income, net of income taxes 107,153 107,428 ---------------------------------------------------------------------- Total stockholders' equity 210,388 209,621 ---------------------------------------------------------------------- Total liabilities and stockholders' equity $438,680 $440,393 ----------------------------------------------------------------------
