Obie Media Reports Fourth Quarter and Year-End Results; Returns to Positive EBITDA in Q4 F2001; Successfully Restructures Contracts with Transit Agency Partners.Business Editors EUGENE Eugene, city (1990 pop. 112,669), seat of Lane co., W Oregon, on the Willamette River; inc. 1862. A processing and shipping center in a farming area, the "Emerald City" has lumbering, food-processing, and microchip and other electronics industries. , Ore.--(BUSINESS WIRE)--Feb 27, 2002 Apparent Winning Bidder in Sacramento Sacramento, city, United States Sacramento (săkrəmĕn`tō), city (1990 pop. 369,365), state capital and seat of Sacramento co., central Calif. Obie O·bie n. An award given annually for exceptional achievement in off-Broadway theater. [From O.B., abbr. for off-Broadway.] Media Corporation (Nasdaq:OBIE), a leading provider of out-of-home advertising Out-of-home advertising (also referred to as OOH) is essentially all type of advertising that reaches the consumer while he or she is outside the home. This is in contrast to broadcast, print, or internet advertising, which may be delivered to viewers out-of-home (e.g. products and services in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , today reported financial results for its fourth quarter and fiscal year ended November November: see month. 30, 2001. The Company also announced the progress which it has achieved in its contract restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). initiative with its transit agency partners, the current status of its contract dispute with the Chicago Transit Authority
Gross revenue for the fourth quarter ended November 30, 2001 increased 1.5% to $15,364,325 compared to $15,135,378 for the same period last year. Consistent with the Company's previously issued guidance, earnings before interest taxes depreciation and amortization Noun 1. Earnings Before Interest Taxes Depreciation and Amortization - income before interest and taxes and depreciation and amortization have been subtracted; an indicator of a company's profitability that is watched by investors (especially in leveraged buyouts) (EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ) was $1,002,961 for the three months ended November 30, 2001. Pre-tax, the Company earned $45,945 in the fourth quarter of fiscal 2001. Because of the tax effect of net 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. carry forwards, the Company reported a net loss of $238,039 for the quarter or a loss of $(.04) per share. Gross revenue for the fiscal year ended November 30, 2001 increased 29% to $66,263,376, primarily as a result of increases in transit-related advertising revenue, compared to $51,325,798 for the same period last year. Fiscal 2001 EBITDA was $(5,849,171) compared to $5,697,068 in fiscal 2000. The primary reasons for the Company experiencing a negative EBITDA in fiscal 2001 were a very weak media economy and, through the third quarter of the fiscal year, high transit agency guarantees. These factors caused the Company to take a $6,000,000 transit contract restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. and a $1.3 million increase in its bad debt reserve. The Company reported a fiscal 2001 net loss of $(7,248,388), or $(1.23) per share, compared to net income of $1,618,244, or $0.27 per 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. share, in fiscal 2000. "The return to positive EBITDA in the fourth quarter reflects the successful implementation of several strategies," said Brian B. Obie, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of the Company. "These include our restructuring efforts with our transit agency partners and the addition of local sales people across the U.S. and Canada." Mr. Obie added, "The transit contract bidding landscape has changed significantly as a result of the current weak advertising environment." Transit Contract Restructuring Initiative Impacting 50% of Obie Transit Revenues Contracts accounting for (excluding Chicago) 23.3% of fiscal 2001 gross transit revenues have been successfully renegotiated, and contracts accounting for another 14.6% of fiscal 2001 gross transit revenues are under active negotiation. In addition, contracts accounting for 15.1% of fiscal 2001 gross transit revenues will expire expire /ex·pire/ (ek-spi´er) 1. to exhale. 2. to die. ex·pire v. 1. To breathe one's last breath; die. 2. To exhale. in March 2002 and are currently being rebid re·bid v. re·bid, re·bid·den or re·bid, re·bid·ding, re·bids v.tr. 1. Games To bid (a previously bid suit) again in bridge. 2. . Transit Contract Award Update The Company is the apparent winning bidder in Sacramento. The new contract will reduce Obie Media's operating costs operating costs npl → gastos mpl operacionales in Sacramento by 35%. In British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography , the Company has added the Kelowna market (buses, benches and shelters) and is now the sole transit advertising provider in the entire Province, with Vancouver as the hub. In Dallas, no complying bids were received to DART's Invitation For Bids due to the high minimum requirements. It appears that a second IFB IFB Invitation For Bid(s) IFB Internet for Business (UK) IFB Illinois Farm Bureau IFB Insurance Fraud Bureau IFB Institut für Flugzeugbau (University of Stuttgart, Germany) will be issued shortly. Chicago Transit Authority Contract Dispute On December 5, 2001, the Company was notified by the Chicago Transit Authority that the CTA An abbreviation for cum testamento annexo, Latin for "with the will annexed." was unilaterally u·ni·lat·er·al adj. 1. Of, on, relating to, involving, or affecting only one side: "a unilateral advantage in defense" New Republic. 2. terminating its advertising contract with the Company. The Company believes that it was at all times in material compliance with all aspects of the contract. A stand-still agreement is in place while the Company and the CTA attempt to resolve outstanding financial issues. It continues to be management's opinion that the restructuring charge taken in the third quarter of fiscal 2001 is sufficient to handle the costs and expenses associated with this termination. Business Outlook and Guidance - Reflecting continued weakness in national advertising and the typical seasonal fluctuations, the Company anticipates reporting negative EBITDA of just less than $1 million for the first quarter of fiscal 2002. In the second quarter, the Company anticipates an EBITDA increase of approximately 50% over the same quarter of the prior year, a range of $800,000 - $1,000,000. - Despite the events of 9/11, the continuing weak advertising environment and the termination of the Chicago contract, for fiscal 2002, the Company reiterated its comfort with previously issued guidance of EBITDA in the range of $4-5 million. Conference Call Information A conference call to review the Company's fiscal 2001 fourth quarter and full-year results is scheduled for 4:30 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. on Wednesday, February 27. To listen to the call, dial 800/937-4589. A transcript A generic term for any kind of copy, particularly an official or certified representation of the record of what took place in a court during a trial or other legal proceeding. A transcript of record of the conference call will be posted on the Obie Media Web site at www.obie.com for a period of two weeks following the call. To view the transcript, click on the Investor's Corner from the Obie Media home page and click on "Conference Call Transcript" in the upper-left-hand corner. About Obie Media Obie Media Corporation is a leading full-service out-of-home advertising company based in Eugene, Oregon The city of Eugene is the county seat of Lane County, Oregon, United States. It is located at the south end of the Willamette Valley, at the confluence of the McKenzie and Willamette rivers, about 60 miles (100 km) east of the Oregon Coast. . The Company sells, designs, produces and installs out-of-home advertising displays which include transit posters, billboards, wallscapes, transit shelters and bus benches 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. and Canada. Obie Media's common stock is traded on the Nasdaq National Market under the symbol "OBIE." For more information, please contact Obie Media Corporation, 4211 West 11th Avenue, Eugene, Oregon 97402-5435. Telephone: (800) 233-6243 or (541) 686-8400. Fax: (541) 345-4339. Web: www.obie.com. Cautionary Statement Concerning 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 document 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 Exchange Act of 1934. These forward-looking statements are not based on historical facts, but rather reflect the Company's current expectations concerning future results and events. Similarly, statements that describe our objectives, plans or goals are or may be forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be different from any future statements. The following important factors, among others, could affect future results, causing these results to differ materially from those expressed in our forward-looking statements: failure to conclude favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. negotiations on pending transactions with existing transit agency partners or to successfully assimilate as·sim·i·late v. 1. To consume and incorporate nutrients into the body after digestion. 2. To transform food into living tissue by the process of anabolism. expanded operations; potential impairments of liquidity or capital resources; inability to generate sufficient advertising revenues to meet contractual guarantees; inability to renew existing lending arrangements as they expire; potential for cancellation or interruption INTERRUPTION. The effect of some act or circumstance which stops the course of a prescription or act of limitation's. 2. Interruption of the use of a thing is natural or civil. of contracts with governmental agencies; a further decline in the demand for advertising in the areas where we conduct our business, or a deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. of business conditions generally in those areas; slower than expected acceptance of our innovative display products; competitive factors, including increased competition and price pressures; changes in the seasonality of our business; and changes in regulatory or other external factors; as well as those factors listed from time to time in the Company's reports. The forward-looking statements included in this document are made only as of the date of this document and under section 27A of the Securities Act and section 21E of the Exchange Act. We do not have any obligation to publicly update any forward-looking statements to reflect subsequent events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or .
OBIE MEDIA CORPORATION
Consolidated Statements of Operations
(unaudited as to quarterly information))
Three Months Ended November
---------------------------------------------
2001 2000
------------ -------------
REVENUES:
Transit advertising $13,630,153 88.7% $13,378,267 88.4%
Outdoor advertising 1,734,172 11.3% 1,757,111 11.6%
----------- -------------
Gross revenue 15,364,325 100.0% 15,135,378 100.0%
Less - Agency commissions (1,465,123) -9.5% (1,379,527) -9.1%
----------- ------------
Net revenues 13,899,202 90.5% 13,755,851 90.9%
OPERATING EXPENSES:
Direct
advertising expenses 10,261,502 66.8% 9,817,240 64.9%
General and administrative 2,615,568 17.0% 1,893,574 12.5%
Start-up costs 19,171 0.1% 37,035 0.2%
Provision for
transit contract losses 0 0.0% 0 0.0%
Depreciation
and amortization 579,445 3.8% 523,844 3.5%
----------- ------------
Operating income (loss) 423,516 2.8% 1,484,158 9.8%
OTHER INCOME (EXPENSE)
Interest expense 378,021 2.5% 328,135 2.2%
----------- ------------
Income (loss)
before income taxes 45,495 0.3% 1,156,023 7.6%
PROVISION FOR (BENEFIT
FROM) INCOME TAXES 283,534 1.8% 482,936 3.2%
------------ ------------
NET INCOME (LOSS) ($238,039) $673,087
============ ============
Earnings (Loss) per share:
Basic ($0.04) $0.11
Diluted ($0.04) $0.11
Other Data:
Net income (loss) (238,039) 673,087
Operating income (loss) 423,516 1,484,158
EBITDA (1) 1,002,961 2,008,002
EBITDA, pro forma (1),(2) 1,002,961 2,008,002
After-tax cash flow (1) 719,427 1,525,066
Earnings (loss) per share ($0.04) $0.11
Weighted average
shares outstanding 5,900,347 5,913,493
Twelve Months Ended November
--------------------------------------------
2001 2000
----------- ----------
REVENUES:
Transit advertising $59,094,444 89.2% $44,614,802 86.9%
Outdoor advertising 7,168,932 10.8% 6,710,996 13.1%
----------- ------------
Gross revenue 66,263,376 100.0% 51,325,798 100.0%
Less - Agency commissions (5,980,355) -9.0% (4,669,561) - 9.1%
----------- ------------
Net revenues 60,283,021 91.0% 46,656,237 90.9%
OPERATING EXPENSES:
Direct
advertising expenses 49,562,195 74.8% 33,961,087 66.2%
General and administrative 10,210,227 15.4% 6,882,450 13.4%
Start-up costs 352,537 0.5% 115,632 0.2%
Provision for
transit contract losses 6,007,233 9.1% 0 0.0%
Depreciation
and amortization 2,077,365 3.1% 1,870,630 3.6%
----------- ------------
Operating income (loss) (7,926,536) -12.0% 3,826,438 7.5%
OTHER INCOME (EXPENSE)
Interest expense 1,337,136 2.0% 1,120,976 2.2%
----------- ------------
Income (loss)
before income taxes (9,263,672) -14.0% 2,705,462 5.3%
PROVISION FOR (BENEFIT
FROM) INCOME TAXES (2,015,284) -3.0% 1,087,218 2.1%
----------- ------------
NET INCOME (LOSS) ($7,248,388) $1,618,244
=========== ============
Earnings (Loss) per share:
Basic ($1.23) $0.27
Diluted ($1.23) $0.27
Other Data:
Net income (loss) (7,248,388) 1,618,244
Operating income (loss) (7,926,536) 3,826,438
EBITDA (1) (5,849,171) 5,697,068
EBITDA, pro forma (1),(2) 158,062 5,697,068
After-tax cash flow (1) (3,833,887) 4,609,850
Earnings (loss) per share ($1.23) $0.27
Weighted average
shares outstanding 5,904,146 5,896,232
(1) "EBITDA" (earnings before interest, taxes, depreciation and
amortization) and "After-tax cash flow" are commonly used
measurements by out-of-home media companies. They should not
be considered in isolation or as a substitute for cash flow
from operating activities or cash flow statement data prepared
in accordance with generally accepted accounting principles
(2) Excluding the effect of the Provision for Transit Contract
Losses
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