Nov. 5, 2009 (PR Newswire) --
CINCINNATI, Nov. 5 /PRNewswire-FirstCall/ -- Regent Communications, Inc. (Nasdaq: RGCI) announced today financial results for the quarter and nine months ended September 30, 2009.
For the third quarter of 2009, net broadcast revenues decreased 13.9% to $21.8 million from $25.3 million during the third quarter of 2008. For the same period, station operating expenses decreased 4.8% to $14.6 million in 2009 compared to $15.3 million in 2008. The Company reported a net loss of $0.4 million for the quarter, or $0.01 per share, compared with a reported net loss of $46.3 million, or $1.19 per share, in the same period last year. Results for 2008 were significantly impacted by a pre-tax non-cash impairment charge of $67.5 million related to the Company's review of its indefinite-lived intangible assets and goodwill.
For the first nine months of 2009, net broadcast revenues decreased 13.5% to $62.8 million compared to $72.6 million in 2008. For the same period, station operating expenses decreased 7.0% to $43.3 million in 2009 from $46.5 million in 2008. The Company reported a net loss of $29.8 million for the first nine months of 2009, or $0.73 per share, compared with a reported net loss of $43.6 million, or $1.12 per share, in 2008. Results for 2009 and 2008 include a pre-tax non-cash impairment charge of $31.8 million and $67.5 million respectively, related to the Company's review of its indefinite-lived intangible assets and goodwill.
"During the third quarter we continued to execute our strategic plan to expand our presence among advertisers and audiences across our local market footprint, while aggressively controlling our costs," said Bill Stakelin, President and CEO of Regent Communications. "Our revenue results reflect the weak advertising market nationwide, offset in part by our consistent ability to outperform the overall radio industry and our portfolio of markets."
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 Nine Months Ended
September 30, September 30,
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2009 2008 2009 2008
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Broadcast revenues, net of
agency commissions $21,811 $25,328 $62,840 $72,643
Station operating expenses 14,565 15,299 43,269 46,534
Corporate general and
administrative expenses 2,609 1,636 6,568 5,441
Impairment of indefinite-
lived intangible assets
and goodwill - 67,522 31,800 67,522
Depreciation and amortization 923 1,075 2,897 3,120
Gain on sale of stations - - - (507)
Loss (gain) on disposal of
long-lived assets and other 66 (39) (13) (3)
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Operating income (loss) 3,648 (60,165) (21,681) (49,464)
Interest expense (3,070) (2,611) (7,157) (8,918)
Realized and unrealized
(loss) gain on derivatives,
net (1,011) (1,500) (904) (2,096)
Impairment of note receivable
and other (50) (952) (50) (952)
Other income (expense), net 94 (125) 152 (108)
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Loss from continuing
operations before income
taxes (389) (65,353) (29,640) (61,538)
Income tax (expense)
benefit (53) 19,088 (138) 17,513
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Loss from continuing
operations (442) (46,265) (29,778) (44,025)
(Loss) gain on discontinued
operations, net of income tax - (27) - 402
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Net loss ($442) ($46,292) ($29,778) ($43,623)
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Basic and fully diluted net
loss per common share ($0.01) ($1.19) ($0.73) ($1.12)
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 income (loss), net loss, or cash (used in) provided by operating activities as an indicator of Regent's performance or liquidity.
Station operating income
Third quarter 2009 station operating income decreased 27.7% to approximately $7.2 million from $10.0 million in the same period in 2008. For the nine months ended September 30, 2009, station operating income decreased 25.0% to $19.6 million from $26.1 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.
