CINCINNATI, March 31 /PRNewswire-FirstCall/ -- Regent
Communications, Inc. (Pink Sheets: RGCIQ) announced today unaudited
financial results for the fourth quarter and year ended
December 31, 2009.
For the fourth quarter of 2009, net broadcast revenues decreased
10.1% to $21.3 million from
$23.7 million during the fourth
quarter of 2008. For the same period, station operating
expenses decreased 5.5% to $14.0
million in 2009 compared to $14.8
million in 2008. The Company reported a net loss of
$14.2 million for the quarter, or
$0.35 per share, compared with a
reported net loss of $75.4 million,
or $1.93 per share, in the same
period last year. Results for 2009 were significantly impacted by a
pre-tax non-cash impairment charge of $12.8
million related to the Company's review of its
indefinite-lived intangible assets and goodwill. Results for the
fourth quarter 2008 were significantly impacted by the recording of
a tax valuation allowance of approximately $73.3 million, as the Company was unable to
conclude that it was more likely than not that its deferred tax
assets would be realized.
For the year ended December 31,
2009, net broadcast revenues decreased 12.7% to $84.1 million compared to $96.3 million in 2008. For the same period,
station operating expenses decreased 6.7% to $57.3 million in 2009 from $61.4 million in 2008. The Company reported a net
loss of $44.0 million for the year
ended December 31, 2009, or
$1.08 per share, compared with a
reported net loss of $119.0 million,
or $3.06 per share, in 2008. Results
for 2009 and 2008 include pre-tax non-cash impairment charges of
$44.6 million and $67.5 million respectively, related to the
Company's review of its indefinite-lived intangible assets and
goodwill. Results for the full year 2008 were significantly
impacted by the recording of a tax valuation allowance in the
fourth quarter of 2008 of approximately $73.3 million, as the Company was unable to
conclude that it was more likely than not that its deferred tax
assets would be realized.
The Company and its subsidiaries are currently operating as
debtors-in-possession under Chapter 11 of the U.S. Bankruptcy Code
and are subject to the supervision of the U.S. Bankruptcy Court for
the district of Delaware. The
Company filed its First Amended Joint Plan of Reorganization and
its First Amended Disclosure Statement with the Bankruptcy Court on
March 22, 2010, and a confirmation
hearing on its Plan is scheduled for April
9, 2010.
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 Year Ended
December 31, December 31,
---------------- ----------------
2009 2008 2009 2008
---- ---- ---- ----
Broadcast revenues, net
of agency commissions $21,301 $23,697 $84,141 $96,340
Station operating
expenses 14,003 14,824 57,272 61,358
Corporate general and
administrative
expenses 2,517 1,435 9,085 6,876
Impairment of
indefinite-lived
intangible assets
and goodwill 12,820 - 44,620 67,522
Depreciation and
amortization 907 1,037 3,804 4,157
Gain on sale of
stations - - - (507)
Loss on disposal of
long-lived assets and
other 59 270 46 267
--- --- --- ---
Operating (loss) income (9,005) 6,131 (30,686) (43,333)
Interest expense (3,126) (2,900) (10,283) (11,818)
Realized and unrealized
(loss) gain on
derivatives, net (2,032) (6,621) (2,936) (8,717)
Impairment of note
receivable and other - (76) (50) (1,028)
Other income (expense),
net 33 (9) 185 (117)
--- --- --- ----
Loss from continuing
Operations before
income taxes (14,130) (3,475) (43,770) (65,013)
Income tax
expense (74) (71,902) (212) (54,389)
--- ------- ---- -------
Loss from continuing
operations (14,204) (75,377) (43,982) (119,402)
Gain on discontinued
operations, net of
income tax - 9 - 411
--- --- --- ---
Net loss ($14,204) ($75,368) ($43,982) ($118,991)
======== ======== ======== =========
Basic and fully diluted
net loss per common
share ($0.35) ($1.93) ($1.08) ($3.06)
Non-GAAP Financial Measures
Regent utilizes certain financial measures that are not
calculated in accordance with GAAP to assess its financial
performance. The non-GAAP performance and liquidity measures
presented in this release are station operating income, same
station net broadcast revenue, adjusted same station net broadcast
revenue, 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 (loss) income,
net loss, or cash provided by operating activities as an indicator
of Regent's performance or liquidity.
Station operating income
Fourth quarter 2009 station operating income decreased 17.8% to
approximately $7.3 million from
$8.9 million in the same period in
2008. For the twelve months ended December
31, 2009, station operating income decreased 23.2% to
$26.9 million from $35.0 million reported for the same period in
2008.
The Company believes that station operating income is a
performance measure that helps investors better understand the
financial health of our radio stations. Further, Regent and other
media companies have traditionally been measured by analysts and
other investors on their ability to generate station operating
income. The following table reconciles operating (loss) income,
which the Company believes is the most directly comparable GAAP
financial measure, to station operating income (in thousands):
Three Months Ended Year Ended
Station operating income December 31, December 31,
2009 2008 2009 2008
---- ---- ---- ----
Operating (loss) income ($9,005) $6,131 ($30,686) ($43,333)
Plus:
Depreciation and amortization 907 1,037 3,804 4,157
Loss on disposal of long-lived
assets and other 59 270 46 267
Impairment of indefinite-lived
intangible asset and goodwill 12,820 - 44,620 67,522
Corporate general and
administrative expenses 2,517 1,435 9,085 6,876
Less:
Gain on sale of stations - - - 507
Station operating income $7,298 $8,873 $26,869 $34,982
====== ====== ======= =======
Same station results
On a same station basis, which includes results from stations
owned and operated in continuing operations during the entire
fourth quarter for both the 2009 and 2008 periods and excludes
barter, net broadcast revenue for the fourth quarter of 2009
decreased 10.3% to $20.2 million from
$22.6 million in the fourth quarter
of 2008. Same station operating income decreased 17.3% to
$7.3 million in the fourth quarter of
2009 compared to $8.9 million in the
fourth quarter of 2008.
The Company believes that a same station presentation is
important to investors as it provides a measure of performance of
radio stations that were owned and operated by Regent in the fourth
quarter of 2008 as well as the current quarter, and eliminates the
effect of acquisitions and dispositions on comparability.
Additionally, the Company has excluded barter in this comparison as
barter customarily results in volatility between quarters, although
differences over the full year are not material. The following
tables reconcile net broadcast revenue and operating (loss) income
to same station net broadcast revenue and same station operating
income (in thousands).
Three Months Ended
Same Station Net Broadcast Revenue December 31,
2009 2008
---- ----
Net broadcast revenue $21,301 $23,697
Less:
Net results of stations not included in same
station category (1) - -
Barter transactions 1,054 1,131
----- -----
Same station net broadcast revenue $20,247 $22,566
======= =======
(1) All stations owned in 2008 were owned in 2009.
Three Months Ended
Same Station Operating Income December 31,
2009 2008
---- ----
Operating (loss) income ($9,005) $6,131
Plus:
Depreciation and amortization 907 1,037
Loss on disposal of long-lived assets and other 59 270
Impairment of indefinite-lived intangible
assets and goodwill 12,820 -
Corporate general and administrative expenses 2,517 1,435
Station operating income 7,298 8,873
Adjustments:
Net results of stations not included in same
station category (1) - -
Barter transactions 22 (22)
--- ---
Same station operating income $7,320 $8,851
====== ======
(1) All stations owned in 2008 were owned in 2009.
Free cash flow
Free cash flow is defined as net loss plus depreciation,
amortization, and other non-cash expenses, less maintenance capital
expenditures and net gains on the sale of stations and disposal of
long-lived assets. Free cash flow decreased to approximately
$0.1 million in the fourth quarter of
2009, from approximately $3.8 million
in the fourth quarter of 2008. For the year ended December 31, 2009, free cash flow decreased to
$1.7 million from $14.1 million in 2008.
The Company believes that free cash flow is a liquidity measure
that helps investors evaluate the ability of the Company to
generate excess cash flow for investing and financing uses.
The following table displays how the Company calculates free
cash flow (in thousands).
Three Months Ended Year ended
December 31, December 31,
Free Cash Flow 2009 2008 2009 2008
-------------- ---- ---- ---- ----
Net loss ($14,204) ($75,368) ($43,982) ($118,991)
Add:
Depreciation and amortization 907 1,037 3,804 4,157
Impairment of indefinite-
lived intangible assets and
goodwill 12,820 - 44,620 67,522
Non-cash unrealized loss on
derivatives 259 6,080 - 6,540
Non-cash interest expense 116 132 465 582
Loss on disposal of long-
lived assets and other - 231 - 179
Non cash tax expense - 73,260 - 73,260
Other items, net (1) 227 279 642 2,151
Less:
Non-cash unrealized gain on
derivatives - - 3,190 -
Non-cash gain on sale of
radio stations - - - 1,155
Non-cash tax benefit - 1,535 - 18,934
Maintenance capital
expenditures 25 248 645 1,101
Digital upgrade capital
expenditures - 76 - 146
Free cash flow $100 $3,792 $1,714 $14,064
==== ====== ====== =======
(1) Includes: non-cash compensation; barter; and loss on the disposal or
impairment of long-lived assets
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 Year Ended
December 31, December 31,
Free Cash Flow 2009 2008 2009 2008
-------------- ---- ---- ---- ----
Net cash provided by operating
activities $3,884 $4,635 $7,012 $15,386
Less:
Changes in operating assets and
liabilities 3,609 516 3,959 -
Bad debt expense 150 3 694 446
Plus:
Changes in operating assets and
liabilities - - - 371
Less:
Maintenance capital expenditures 25 248 645 1,101
Digital upgrade capital expenditures - 76 - 146
Free cash flow $100 $3,792 $1,714 $14,064
==== ====== ====== =======
Regent Communications 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. Regent Communications, Inc. shares are traded O.T.C. under
the symbol "RGCIQ.PK."
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; increased competition from
emerging technologies; fluctuations in the cost of operating radio
properties; the Company's ability to manage growth; the Company's
ability to effectively integrate its acquisitions; potential costs
relating to stockholder demands; changes in the regulatory climate
affecting radio broadcast companies; cancellations, disruptions or
postponement of advertising schedules in response to national or
world events; and the Company's ability to regain and maintain
compliance with the terms of its credit facilities or to refinance
or restructure such obligations. 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.