Citadel Broadcasting Corporation Reports 2005 First Quarter Results.LAS VEGAS Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. -- Citadel Broadcasting
Citadel Broadcasting Corporation NYSE: CDL is a Las Vegas, Nevada based broadcast holding company. Investment house Forstmann Little & Company owns 27% of Citadel. Corporation (NYSE NYSE See: New York Stock Exchange :CDL 1. CDL - Computer Definition anguage. A hardware description language. "Computer Organisation and Microprogramming", Yaohan Chu, P-H 1970. 2. CDL - Command Definition Language. Portion of ICES used to implement commands. Sammet 1969, p.618-620. 3. ): FIRST QUARTER HIGHLIGHTS --Net Revenue Up 6% --Station Operating Income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. Up 10% --Operating Income of $26.1 million in 2005 Compared to an Operating Loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $3.8 million in 2004 --Free Cash Flow Up 23% Citadel Broadcasting Corporation (NYSE:CDL) today reported its results for the first quarter of 2005. March 31, 2005 - First Quarter Results Net revenues for the first quarter of 2005 were a record $92.0 million compared with $86.9 million in the first quarter of 2004, an increase of $5.1 million, or 5.9%. The increase in revenues was due to higher revenues at the Company's existing stations as well as the acquisitions completed in 2004. Excluding the effect of the stations acquired in 2004, same station net revenues for the first quarter of 2005 were up 2.2% over the same period in 2004. Operating income for the first quarter of 2005 was $26.1 million compared with a loss of $3.8 million in the corresponding 2004 period, an increase of $29.9 million. The increase was primarily due to higher revenues and a decrease in depreciation and amortization expense. Station operating income (as detailed in the attached table is generally defined as operating income (loss) plus depreciation and amortization, local marketing agreement fees, corporate general and administrative expenses, other, net and other non-cash expenses Noun 1. non-cash expense - an expense (such as depreciation) that is not paid for in cash disbursal, disbursement, expense - amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures) ) was a record $35.6 million for the first quarter of 2005 compared to $32.4 million for the first quarter of 2004, an increase of $3.2 million, or 9.9%. On a same station basis, as defined above, station operating income was up 6.9% over the same period in 2004. Free cash flow (as detailed in the attached table is generally defined as operating income (loss) (i) plus depreciation and amortization, other, net and non-cash expenses (ii) less net interest expense (excluding amortization of debt issuance costs), capital expenditures and cash taxes) was a record $25.6 million, for the three months ended March 31, 2005 compared to $20.8 million, for the three months ended March 31, 2004, an increase of $4.8 million or approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 23.1%. Farid Suleman Farid Suleman is the current chairman and CEO of Citadel Broadcasting. For years at Infinity Radio, Suleman was the main assistant of Mel Karmazin, who has since made a move to head up Sirius Satellite Radio. , Chairman and Chief Executive Officer of Citadel Broadcasting Corporation commented: "The Company continues to report record revenues, operating income, station operating income and free cash flow despite a difficult environment for the radio industry. We continue to invest in our programming costs while managing our overall station operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , resulting in same station operating income growth of 7% and free cash flow growth of over 20%." Mr. Suleman added, "The Company continues to utilize its free cash flow as well as its availability under its credit facility to maximize In a graphical environment, to enlarge a window to the full size of the screen. See Win Maximize windows. shareholder value through both station acquisitions and stock repurchases Stock repurchase A firm's repurchase of outstanding shares of its common stock. under the Company's stock repurchase programs. As of April 2005, we have repurchased approximately $148 million, or 10.5 million shares, of our common stock." Net interest expense decreased to $4.5 million for the quarter ended March 31, 2005 from $6.2 million for the quarter ended March 31, 2004, a decrease of $1.7 million or 27.4%. The decrease in net interest expense was primarily due to the repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan of $500 million of 6% subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. notes on February February: see month. 18, 2004 offset by the concurrent At the same time. It implies that multiple processes are taking place simultaneously. See concurrent operation. issuance of $330 million of 1.875% convertible notes and the Company's increase in both outstanding borrowings under the senior credit facility and higher interest rates for the quarter ended March 31, 2005 as compared to the quarter ended March 31, 2004. Net income for the quarter ended March 31, 2005 was $11.9 million or $0.10 per basic share as compared to a net loss of $29.5 million or $(0.23) per basic share for the same period in 2004. On a fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis, net income per share was $0.09 in the first quarter of 2005 compared to a loss per share of ($0.23) in the first quarter of 2004. The increase in net income over the prior period is primarily due to higher operating income. The net loss for the quarter ended March 31, 2004 included non-cash expenses of $10.6 million due to the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of deferred financing costs as a result of the refinancing Refinancing An extension and/or increase in amount of existing debt. of the Company's subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". . Citadel Broadcasting Corporation is a radio broadcaster focused primarily on acquiring, developing and operating radio stations throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . The Company owns and operates 155 FM and 58 AM radio stations in 47 markets located in 24 states across the country. For more information visit www.citadelbroadcasting.com. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This news release contains both historical and forward-looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results or performance of the Company to be materially different from any future results or performance expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward-looking statements. Various risks that could cause future results to differ from those expressed by the forward-looking statements included in this release include, but are not limited to: changes in economic conditions in the U.S.; fluctuations in interest rates; changes in industry conditions; changes in operating performance; shifts in population and other demographics The attributes of people in a particular geographic area. Used for marketing purposes, population, ethnic origins, religion, spoken language, income and age range are examples of demographic data. ; changes in the level of competition for advertising dollars; technological changes and innovations; changes in governmental regulations and policies and actions of regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. bodies; changes in tax rates; and changes in capital expenditure requirements. Other key risks are described in the Company's reports filed with the U.S. Securities and Exchange Commission. The Company assumes no obligation to publicly update or revise any forward-looking statements.
CITADEL BROADCASTING CORPORATION
Condensed Consolidated Financial Data
(Amounts in Thousands, except per share data)
Three Months Ended
March 31,
----------------------
Condensed Statements of Operations 2005 2004
(Unaudited)
Net Revenues $92,035 $86,918
Cost of Revenues 27,671 25,641
Selling, General and Administrative 28,792 28,902
Corporate General and Administrative 3,235 2,601
Non-Cash Stock Compensation 601 1,746
Depreciation and Amortization 5,672 31,520
Local Marketing Agreement Fees 466 527
Other, Net (494) (172)
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Operating Income (Loss) 26,092 (3,847)
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Non-Operating Expenses (Income):
Net Interest Expense, Including Amortization
of Debt Issuance Costs of $460 and $520 for
the Three Months Ended March 31, 2005 and
2004, Respectively 4,518 6,228
Write-off of Deferred Financing Costs Due to
Extinguishment of Debt - 10,649
---------- ----------
Total Non-Operating Expenses, Net 4,518 16,877
---------- ----------
Income (Loss) before Income Taxes 21,574 (20,724)
Income Tax Expense 9,689 8,804
---------- ----------
Net Income (Loss) $11,885 $(29,528)
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Basic Net Income (Loss) Per Common Share $0.10 $(0.23)
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Diluted Net Income (Loss) Per Common Share $0.09 $(0.23)
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Weighted Average Common Shares Outstanding:
Basic 123,205 127,421
========== ==========
Diluted 139,157 127,421
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March 31, December
2005 31, 2004
---------- ----------
(Unaudited)
Selected Balance Sheet Data:
Cash and Cash Equivalents $2,875 $948
Working Capital 70,219 69,930
Total Assets 2,312,450 2,315,698
Senior Debt (Including Current Portion) 302,500 286,000
Convertible Notes 330,000 330,000
Total Shareholders' Equity 1,358,770 1,380,383
CITADEL BROADCASTING CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION
-----------------------------------------------------------------
(Unaudited; Amounts in thousands)
The following tables set forth the Company's Station Operating Income for the three months ended March 31, 2005 and 2004. The Company defines Station Operating Income as net income (loss) adjusted to exclude the following line items presented in its Statement of Operations See Income statement. : income tax expense, write off of deferred financing costs, net interest expense, other, net, depreciation and amortization, local marketing agreement fees, non-cash stock compensation and corporate general and administrative expenses. Station Operating Income, among other things, is used by the Company's management to evaluate the Company's operating performance, to value prospective acquisitions, as the basis of incentive compensation targets for certain management personnel, and this measure is among the primary measures used by management for the planning and forecasting of future periods. The Company believes the presentation of this measure is relevant and useful for investors because it allows investors to view performance in a manner similar to the method used by the Company's management, helps improve their ability to understand the Company's operating performance and makes it easier to compare the Company's results with other companies that have different financing and capital structures or tax rates. In addition, this measure is also among the primary measures used externally by the Company's investors, analysts and peers in its industry for purposes of valuation and comparing the operating performance of the Company to other companies in its industry. Since Station Operating Income is not a measure of performance calculated in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). , it should not be considered in isolation of, or as a substitute for, operating income or loss, net income or loss, cash flows provided by operating, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. Station Operating Income, as the Company calculates it, may not be comparable to similarly titled measures employed by other companies. In addition, this measure does not necessarily represent funds available for discretionary use, and is not necessarily a measure of the Company's ability to fund its cash needs. As Station Operating Income excludes certain financial information compared with net income (loss), the most directly comparable GAAP financial measure, users of this financial information should consider the types of events and transactions that are excluded. As required by the SEC, the Company provides below a reconciliation of Station Operating Income to net income (loss), the most directly comparable amount reported under GAAP.
Three Months Ended
March 31,
-----------------------
2005 2004
Station Operating Income $35,572 $32,375
Corporate General and Administrative 3,235 2,601
Non-Cash Stock Compensation 601 1,746
Local Marketing Agreement Fees 466 527
Other, Net (494) (172)
---------- ----------
Operating Income Before Depreciation and
Amortization 31,764 27,673
Depreciation and Amortization 5,672 31,520
---------- ----------
Operating Income (Loss) 26,092 (3,847)
Net Interest Expense 4,518 6,228
Write off of Deferred Financing Costs due to
Extinguishment of Debt - 10,649
---------- ----------
Income (Loss) before Income Taxes 21,574 (20,724)
Income Tax Expense 9,689 8,804
---------- ----------
Net Income (Loss) $11,885 $(29,528)
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OTHER FINANCIAL DATA
--------------------
Three Months Ended
March 31,
-------------------
Same Station Computations: 2005 2004
Net Revenues - Reconciliation of Same Station Net
Revenues to GAAP:
Net Revenues as Reported $92,035 $86,918
Adjustments for Radio Station Acquisitions
and Divestitures (5,424) (2,181)
--------- --------
Same Station Net Revenues 86,611 84,737
Station Operating Income - Same Station:
Station Operating Income 35,572 32,375
Adjustments for Radio Station Acquisitions
and Divestitures (1,695) (692)
--------- --------
Same Station Operating Income 33,877 31,683
Free cash flow is defined as operating income (loss) (i) plus depreciation, amortization, non-cash stock compensation expense and other, net (ii) less net interest expense (excluding amortization of debt issuance costs), capital expenditures and cash taxes. The Company uses free cash flow, among other measures, to evaluate its operating performance. Management believes free cash flow provides investors with an important perspective on the cash available to service debt, make strategic acquisitions and investments, maintain capital assets capital assets n. equipment, property, and funds owned by a business. (See: capital, capital account) and fund ongoing operations and working capital needs. As a result, free cash flow is a significant measure of the Company's ability to generate long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. value. The Company believes the presentation of free cash flow is relevant and useful for investors because it allows investors to view performance in a manner similar to the method used by management. In addition, free cash flow is also a primary measure used externally by the Company's investors, analysts and peers in its industry for purposes of valuation and comparing the operating performance of the Company to other companies in its industry. As free cash flow is not a measure of performance calculated in accordance with GAAP, it should not be considered in isolation of, or as a substitute for, operating income or loss, net income or loss, cash flows provided by operating, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. Free cash flow, as the Company calculates it, may not be comparable to similarly titled measures employed by other companies. In addition, free cash flow does not necessarily represent funds available for discretionary use, and is not necessarily a measure of the Company's ability to fund its cash needs. Free cash flow, as defined by the Company, excludes certain financial information when compared with operating income or loss, the most directly comparable GAAP financial measure, and users of this financial information should consider the types of events and transactions that are excluded. As required by the SEC, the Company provides below a reconciliation of free cash flow to operating income or loss, the most directly comparable amount reported under GAAP.
Three Months Ended
March 31,
-----------------------
2005 2004
Operating Income (Loss) $26,092 $(3,847)
Plus (Minus)
Depreciation and Amortization 5,672 31,520
Non-Cash Stock Compensation 601 1,746
Other, Net (494) (172)
Interest Expense, Net (4,518) (6,228)
Amortization of Debt Issuance Costs 460 520
Capital Expenditures (1,510) (2,066)
Cash Taxes (679) (653)
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Free Cash Flow $25,624 $20,820
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