Fisher Communications' Fourth Quarter and Full-Year 2012 Financial Results

Fisher Communications' Fourth Quarter and Full-Year 2012 Financial Results 
Broadcast Stations Drove Strong Performance 
SEATTLE, WA -- (Marketwire) -- 02/28/13 --  Fisher Communications,
Inc. (NASDAQ: FSCI)  


 
--  Adjusted EBITDA for fiscal 2012 increased 71% from 2011 and earnings
    per share increased 35% (excluding the after-tax gain on the sale of
    Fisher Plaza).
--  Leading market positions drove Net Television Revenue up 23% in fourth
    quarter and 15% for fiscal 2012.
--  TV cash flow increased 55% in the fourth quarter of 2012 as well as
    for fiscal 2012, compared to the same periods in 2011.
--  Fourth quarter diluted EPS was $0.96 compared to $0.72 EPS in the
    fourth quarter of 2011 and full year diluted EPS of $1.47 compared to
    $1.09 EPS in 2011 (excluding the after-tax gain on the sale of Fisher
    Plaza).
--  Board of Directors declared a quarterly cash dividend of $0.15 per
    share.

  
Fisher Communications, Inc. (NASDAQ: FSCI), a leader in local media
innovation, today reported its financial results for the fourth
quarter and fiscal year ended December 31, 2012. 
Management Commentary
 "We are pleased with our operating performance
in the fourth quarter and full year of 2012. For the seventh
consecutive year, Fisher broadcast stations grew core market revenue
share reflecting the quality and value of our local brands, and
validating the strength and execution of our strategic plan," said
Colleen B. Brown, Fisher's President and Chief Executive Officer. "As
we begin 2013, we remain focused on building on our momentum and
creating value for our shareholders." 
She added, "Completing our first full year as a pure play
broadcaster, adjusted EBITDA increased 71% from prior year. Revenue
growth and operational efficiencies, demonstrate the robust leverage
inherent in our business model."  
Fourth Quarter 2012 Financial Highlights
 (All comparisons are made
to the fourth quarter of 2011 unless otherwise noted) 


 
--  Revenues were $52.1 million, up 12% from $46.4 million but were up 20%
    when excluding Fisher Plaza revenue from 2011.
--  Direct operating, selling, general and administrative and programming
    costs increased 5% or $1.8 million. This year's results included
    increases in Plaza rent 
expenses, network programming fees, costs
    related to various strategic initiatives and increased stock
    compensation expense related to the special cash dividend. 2011
    expenses included a credit related to the Company's revised vacation
    policy and Plaza operating expenses. Excluding the items noted above,
    our remaining operating expenses were 4% lower than the same period
    last year.
--  Adjusted EBITDA of $17.5 million, was up 65% from $10.7 million.
--  EPS of $0.96 increased from $0.72 in the year ago period (excluding
    the after-tax gain on the sale of Fisher Plaza).

  
Television:  


 
--  TV net revenue was up 23% year-over-year to $46.7 million driven by
    strong political issue and candidacy placements.
--  Net TV revenue (excluding political) decreased 2% to $33.9 million as
    the Pacific Northwest continued to experience softening in national
    spot advertising.
--  TV core advertising revenue decreased 11% to $24.2 million with
    weakness most notable in our professional services and automotive
    categories, which decreased 23% and 6% respectively, while the retail
    category was flat.
--  Retransmission consent revenue increased 81% to $6.1 million, the
    result of renewed contracts.
--  TV cash flow increased 55% to $20.7 million; TV cash flow margin was
    44%, up from 35% due to an increase in political spending and
    retransmission consent revenue.
--  Political revenue increased 267% to $12.9 million due to increased
    issue and candidacy placements.

  
Radio:  


 
--  Radio net revenue was relatively flat at $5.5 million.
--  Radio cash flow was relatively flat at $1.4 million; radio cash flow
    margin of 26% was also in-line with the fourth quarter of 2011.

  
Full Year 2012 Financial Highlights
 (All comparisons are made to
full-year 2011 unless otherwise noted) 


 
--  Revenues were up 3% to $168.2 million, and were up 12% when excluding
    Fisher Plaza revenue from 2011.
--  Direct operating, selling, general and administrative and programming
    costs increased 1% or $2.0 million. This year's results included
    increases in Plaza rent expenses, network programming fees, costs
    related to various strategic initiatives and increased stock
    compensation expense related to the special cash dividend. 2011
    expenses included proxy costs, credit related to the Company's revised
    vacation policy and Plaza operating expenses. Excluding the items
    noted above, our remaining operating expenses were 2% lower than 2011.
--  Adjusted EBITDA increased 71% to $36 million.
--  EPS of $1.47 increased from $1.09 in 2011 (excluding the after-tax
    gain on the sale of Fisher Plaza).

  
Television:  


 
--  TV net revenues increased 15% to $147.3 million due to increased
    political spending and retransmission consent revenue.
--  Net TV revenue (excluding political) increased 5% to $129.4 million.
--  TV core advertising revenue declined 3% to $94.1 million due in large
    part to a 6% decline in our professional services category on lower
    insurance spending and a 3% decline in our telecom category due to
    lower cellular provider spending. These declines were partially offset
    by a 6% increase in automotive due to increased dealership spending
    and a 5% increase in retail advertising.
--  Retransmission consent revenue increased 66% to $22.2 million, the
    result of renewed contracts.
--  TV cash flow increased $17.4 million to $49.0 million or 33% cash flow
    margin, up from 25% cash flow margin in 2011.
--  Political revenue increased 274% to $18 million due to increased issue
    and candidacy placements.

  
Radio:  


 
--  Radio net revenue declined 2% to $21 million.
--  Radio cash flow was up 14% to $5.5 million; radio cash flow margin was
    26%, an increase from 23% in 2011.

  
Recent Operational Highlights 


 
--  Flagship station KOMO-TV surpassed market leading rival in key
    demographics for the first time in more than a decade.
--  Announced the agreement to acquire the operating assets of television
    station KMTR TV in Eugene, Oregon, which is expected to close in the
    second quarter of 2013.

  
Balance Sheet & Liquidity 


 
--  Cash and cash equivalents were $20.4 million at year end, compared to
    $176.5 million at the end of 2011, reflecting $93 million of dividends
    paid and shares repurchased and retirement of senior debt of $62
    million.
--  Fisher remains debt free and has established a $30 million senior
    secured revolving credit facility.

  
Quarterly Dividend
 The Company's Board of Directors declared a
quarterly cash dividend of $0.15 per share on its common stock
payable on March 29, 2013, to shareholders of record at the close of
business on March 19, 2013. 
Fourth Quarter and Full Year 2012 Conference Call
 Fisher will host a
conference call today at 1:30 p.m. (PST). Senior management will
discuss the financial results and host a question and answer session.
The dial-in number for the audio conference call is 1-888-713-4215,
international callers should dial 1-617-213-4867; confirmation code
95513592. A live audio webcast of the call will be accessible to the
public on Fisher
's website, www.fsci.com.  
Replay of the conference call will be available approximately two
hours after the live call ends and will be available for one week
following the call. To access the replay, dial 1-888-286-8010.
International callers should dial 1-617-801-6888 to access the
replay. The passcode for the replay is 63828653.  
Definitions and Disclosures Regarding Non-GAAP Financial Information 
The Company reports and discusses its operating results using
financial measures consistent with generally accepted accounting
principles (GAAP) and believes this should be the primary basis for
evaluating its performance. 
The preceding discussion of our results includes a discussion of
non-GAAP financial measures such as Television cash flow, Radio cash
flow, net income, excluding the after tax impact on sale of Fisher
Plaza, net, Broadcast cash flow and Earnings before Interest, Taxes,
Depreciation and Amortization (EBITDA) and Adjusted EBITDA. These
non-GAAP measures should not be viewed as alternatives or substitutes
for GAAP reporting. 
The Company believes the presentation of these non-GAAP measures is
useful to investors because they are used by lenders to measure the
Company's ability to service debt; by industry analysts to determine
the market value of stations and their operating performance; and by
management to identify the cash available to service debt, make
strategic acquisitions and investments, maintain capital assets and
fund ongoing operations and working capital needs; and, because they
reflect the most up-to-date operating results of the stations
inclusive of pending acquisitions, time brokerage agreements or local
marketing agreements. Management believes they also provide an
additional basis from which investors can establish forecasts and
valuations for the Company's business. 
Television and radio cash flow are calculated as television and radio
segment income from operations plus amortization of broadcast rights,
non-cash charges, Internet and trade expenses minus payments for
broadcast rights and Internet revenue. Broadcast cash flow is
calculated by adding the Television and radio cash flow. 
Net income, excluding the after tax impact on sale of Fisher Plaza,
net is calculated as net income less the gain on Fisher Plaza, net,
adjusted by the estimated tax impact of the gain by applying the
annual effective tax rate. 
EBITDA is calculated as income from operations plus amortization of
broadcast rights; depreciation and amortization; stock-based
compensation; loss on disposal of property, plant and equipment, net;
proxy related costs; and non-cash charges minus payments for
broadcast rights; gain on sale of real estate, net; Plaza fire
reimbursements, net; and amortization of non-cash benefit resulting
from a change in national advertising representation firm. 
Adjusted EBITDA excludes Plaza rent expense and Plaza EBITDA in 2011.
Plaza EBITDA is calculated as Plaza segment income from operations.
Management believes this presentation of Adjusted EBITDA is useful to
investors because it provides investors with a comparable measure
given the impact of the disposition and subsequent operating lease of
Fisher Plaza. 
For a reconciliation of these non-GAAP financial measurements to the
GAAP financial results cited in this press release, please see the
supplemental tables at the end of this release. 
About Fisher Communications, Inc. 
 Fisher Communications, Inc. is a
Seattle-based communications Company that owns and operates 13 full
power television stations, seven low power television stations, three
owned radio stations and one managed radio station in the Western
United States. The Company also owns and operates Fisher Interactive
Network, its online division (including over 120 online sites) and
Fisher Pathways, a satellite and fiber transmission provider. For
more information about Fisher Communications, Inc., go to
www.fsci.com. 
Forward-Looking Statements 
 This news release includes
forward-looking statements. We have based these forward-looking
statements on our current expectations and projections about future
events. Forward-looking statements include information preceded by,
followed by, or that includes the words "guidance," "believes,"
"expects," "intends," "anticipates," "could," or similar expressions.
For these statements, the Company claims the protection of the safe
harbor for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995. The forward-looking
statements contained in this news release, including, among other
things, statements related to changes in revenue, cash flow and
operating expenses, and the expected closing of the KMTR TV
transaction involve risks and uncertainties and are subject to change
based on various important factors, including the impact of changes
in national and regional economies, the competitiveness of political
races and voter initiatives, successful integration of acquired
television stations (including achievement of synergies and cost
reductions), pricing fluctuations in local and national advertising,
future regulatory actions and conditions in the television stations'
operating areas, competition from others in the broadcast television
markets served by the Company, volatility in programming costs, the
effects of governmental regulation of broadcasting, industry
consolidation, technological developments and major world news
events. Unless required by law, we undertake no obligation to update
or revise any forward-looking statements, whether as a result of new
information, future events or otherwise. In light of these risks,
uncertainties and assumptions, the forward-looking events discussed
in this news release might not occur. You should not place undue
reliance on these forward-looking statements, which speak only as of
the date of this release. For more details on factors that could
affect these expectations, please see the risk factors in our Annual
Report on Form 10-K for the year ended December 31, 2012, which we
have filed with the Securities and Exchange Commission. 


 
                                                                            
                Fisher Communications, Inc. and Subsidiaries                
               Condensed Consolidated Statement of Operations               
                                 (Unaudited)                                
                                                                           
                                               Three months                
                                                  ended                    
                                               December 31,         %      
                                                                Increase   
(in thousands, except per-share amounts)      2012      2011   (decrease)  
                                            -------  --------  ----------  
Revenue                                     $52,107  $ 46,366          12% 
                                            -------  --------  ----------  
Operating expenses                                                         
  Direct operating costs                     17,492    17,679          (1%)
  Selling, general and administrative                                      
   expenses                                  16,737    14,685          14% 
  Amortization of broadcast rights            2,463     2,484          (1%)
  Depreciation and amortization               1,749     1,537          14% 
  Gain on sale of real estate, net                -         -         n/a  
  Gain on sale of Fisher Plaza, net               -   (40,454)        100% 
  Plaza fire reimbursements, net                  -         -         n/a  
  Gain on asset exchange, net                     -       (32)        100% 
                                            -------  --------  ----------  
  Total operating expenses                   38,441    (4,101)       1037% 
                                            -------  --------  ----------  
Income from continuing operations            13,666    50,467         (73%)
Loss on extinguishment of senior notes, net       -      (121)             
Other income, net                              (118)      206              
Interest expense                                (17)   (1,498)             
         
                                   -------  --------              
Income from continuing operations before                                   
 income taxes                                13,531    49,054              
Provision for income taxes                    4,955    16,529              
                                            -------  --------              
Income from continuing operations, net of                                  
 income taxes                                 8,576    32,525              
Income from discontinued operations, net of                                
 income taxes                                     -       577              
                                            -------  --------              
Net income                                  $ 8,576  $ 33,102              
                                            =======  ========              
                                                                           
                                                                           
Net income per share:                                                      
  From continuing operations                $  0.97  $   3.68              
  From discontinued operations                    -      0.07              
                                            -------  --------              
  Net income per share                      $  0.97  $   3.75              
                                            =======  ========              
                                                                           
Net income per share assuming dilution:                                    
  From continuing operations                $  0.96  $   3.65              
  From discontinued operations                    -      0.06              
                                            -------  --------              
  Net income per share assuming dilution    $  0.96  $   3.71              
                                            =======  ========              
                                                                           
Weighted average shares outstanding           8,842     8,838              
                                            -------  --------              
Weighted average shares outstanding                                        
 assuming dilution                            8,928     8,914              
                                            -------  --------              
                                                                           
Dividends declared per share                $  0.15  $      -              
                                            =======  ========              
                                                                           
                                                                           
                                                                           
 
                                                                            
                                                Year ended                  
                                               December 31,          %      
                                                                 Increase   
(in thousands, except per-share amounts)       2012      2011   (decrease)  
                                            --------  --------  ----------  
Revenue                                     $168,204  $163,968           3% 
                                            --------  --------  ----------  
Operating expenses                                                          
  Direct operating costs                      66,466    70,274          (5%)
  Selling, general and administrative                                       
   expenses                                   62,311    55,494          12% 
  Amortization of broadcast rights             9,835    10,808          (9%)
  Depreciation and amortization                6,990     9,564         (27%)
  Gain on sale of real estate, net              (164)   (4,089)         96% 
  Gain on sale of Fisher Plaza, net                -   (40,454)        100% 
  Plaza fire reimbursements, net                   -      (223)        100% 
  Gain on asset exchange, net                      -       (32)        100% 
                                            --------  --------  ----------  
  Total operating expenses                   145,438   101,342          44% 
                                            --------  --------  ----------  
Income from continuing operations             22,766    62,626         (64%)
Loss on extinguishment of senior notes, net   (1,482)   (1,477)             
Other income, net                                 25       420              
Interest expense                                (309)   (7,195)             
                                            --------  --------              
Income from continuing operations before                                    
 income taxes                                 21,000    54,374              
Provision for income taxes                     7,806    18,507              
                                            --------  --------              
Income from continuing operations, net of                                   
 income taxes                                 13,194    35,867              
Income from discontinued operations, net of                                 
 income taxes                                      -       568              
                                            --------  --------              
Net income                                  $ 13,194  $ 36,435              
                                            ========  ========              
                                                                            
                                                                            
Net income per share:                                                       
  From continuing operations                $   1.49  $   4.06              
  From discontinued operations                     -      0.07              
                                            --------  --------              
  Net income per share                      $   1.49  $   4.13              
                                            ========  ========              
                                                                            
Net income per share assuming dilution:                                     
  From continuing operations                $   1.47  $   4.03              
  From discontinued operations                     -      0.06              
                                            --------  --------              
  Net income per share assuming dilution    $   1.47  $   4.09              
                                            ========  ========              
                                                                            
Weighted average shares outstanding            8,860     8,829              
                                            --------  --------              
Weighted average shares outstanding                                         
 assuming dilution                             8,948     8,904              
                                            --------  --------              
                                                                            
Dividends declared per share                $  10.15  $      -              
                                            ========  ========              
                                                                            
                                                                            
                                                                            
                Fisher Communications, Inc. and Subsidiaries                
                    Condensed Consolidated Balance Sheet                    
                                 (Unaudited)                                
                                                                            
                                                  December 31,  December 31,
(in thousands)                                        2012          2011    
                                                  ------------  ------------
ASSETS                                                                      
Current assets                                                              
  Cash and cash equivalents                       $     20,403  $    143,017
  Short-term debt security investments                       -        33,481
  Receivables, net                                      28,243        32,402
  Income taxes receivable                                  834           117
  Deferred income taxes, net                             1,062         1,825
  Prepaid expenses and other                             3,629         3,062
  Broadcast rights                                       6
,690         6,789
                                                  ------------  ------------
    Total current assets                                60,861       220,693
Restricted cash                                          3,624         3,594
Cash surrender value of life insurance and                                  
 annuity contracts                                      18,100        17,278
Goodwill, net                                           13,293        13,293
Intangible assets, net                                  40,072        40,307
Other assets                                             5,208         5,006
Deferred income taxes, net                                 711         3,367
Assets held for sale                                         -           658
Property, plant and equipment, net                      39,155        40,921
                                                  ------------  ------------
Total assets                                      $    181,024  $    345,117
                                                  ------------  ------------
                                                                            
LIABILITIES AND STOCKHOLDERS' EQUITY                                        
Current Liabilities                                                         
  Current maturities of long-term debt            $          -  $     61,834
  Accounts payable                                       1,496         3,754
  Accrued payroll and related benefits                   4,200         4,660
  Interest payable                                           -         1,556
  Broadcast rights payable                               6,488         6,541
  Income taxes payable                                   3,060        21,468
  Current portion of accrued retirement benefits         1,368         1,302
  Other current liabilities                              7,260         8,708
                                                  ------------  ------------
    Total current liabilities                           23,872       109,823
Deferred income                                          8,338        10,036
Accrued retirement benefits                             22,574        20,525
Other liabilities                                        3,105         2,688
                                                  ------------  ------------
    Total liabilities                                   57,889       143,072
                                                  ------------  ------------
Total stockholders' equity                             123,135       202,045
                                                  ------------  ------------
Total liabilities and stockholders' equity        $    181,024  $    345,117
                                                  ------------  ------------
                                                                            
                                                                            
                                                                            
                Fisher Communications, Inc. and Subsidiaries                
               Condensed Consolidated Statement of Cash Flow                
                                (Unaudited)                                 
                                                                            
                                                    Year ended December 31, 
(in thousands)                                         2012         2011    
                                                   -----------  ----------- 
Operating activities                                                        
  Net income                                       $    13,194  $    36,435 
  Adjustments to reconcile net income to net cash                           
   provided by operating activities                                         
        Depreciation and amortization                    6,990        9,564 
        Deferred income taxes, net                       3,418       (3,960)
        Loss on extinguishment of senior notes,                             
         net                                               594          466 
        Loss in operations of equity investees             191          250 
        Loss on disposal of property, plant and                             
         equipment                                         114          274 
        Gain on exchange of assets, net                      -          (32)
        Gain on sale of radio station, net                   -       (1,062)
        Gain on sale of real estate, net                  (164)      (4,089)
        Gain on sale of Fisher Plaza, net                    -      (40,454)
        Amortization of deferred financing fees             23          296 
        Amortization of deferred gain on sale of                            
         Fisher Plaza                                     (759)         (30)
        Amortization of debt security investment                            
         premium                                            74            - 
        Amortization of non-cash contract                                   
         termination fee                                (1,461)      (1,461)
        Amortization of broadcast rights                 9,835       10,808 
        Payments for broadcast rights                   (9,804)     (11,069)
        Stock-based compensation                         2,458        1,580 
  Change in operating assets and liabilities, net                           
      Receivables                                        4,159       (1,596)
      Prepaid expenses and other                           279         (198)
      Cash surrender value of life insurance and                            
       annuity contracts                                  (821)       1,617 
      Other assets                                         164        1,605 
      Accounts payable, accrued payroll and                                 
       related benefits and other current                                   
       liabilities liabilities                             (56)      (4,095)
      Interest payable                                  (1,556)        (996)
      Income taxes receivable and payable              (19,124)      22,703 
      Accrued retirement benefits                          736          654 
      Other liabilities                                  1,151       (3,770)
                                                   -----------  ----------- 
          Net cash provided by operating                                    
           activities                                    9,635       13,440 
                                                   -----------  ----------- 
Investing activities                                                        
  Increase in restricted cash                                -       (3,594)
  Investment in equity investee                           (121)        (147)
  Purchase of held to maturity debt security                                
   investments                                         (82,733)     (33,481)
  Purchase of investment in a radio station               (750)           - 
  Purchase of option to acquire a radio station           (615)        (185)
  Deposits paid for purchase of television                                  
   stations                                               (850)           - 
  Purchase of property, plant and equipment             (8,903)      (8,135)
  Proceeds from sale of available for sale debt                             
   security investments                                 66,328            - 
  Proceeds from maturity of available for sale                              
   debt security investments                             6,200            - 
  Proceeds from sale of held to maturity debt                               
   security investments                                  7,6
28            - 
  Proceeds from maturity of held to maturity debt                           
   security investments                                 35,967            - 
  Proceeds from sale of radio station                        -        1,807 
  Proceeds from sale of real estate                        825        4,164 
  Proceeds from sale of Fisher Plaza                         -      156,111 
                                                   -----------  ----------- 
          Net cash provided by investing                                    
           activities                                   22,976      116,540 
Financing activities                                                        
  Repurchase of senior notes                           (61,834)     (39,606)
  Repurchase of common stock                            (2,510)           - 
  Shares settled upon vesting of stock rights             (438)        (292)
  Payments on capital lease obligations                   (196)        (181)
  Proceeds from exercise of stock options                   69           75 
  Excess tax benefit from exercise of stock awards         123           96 
  Cash dividends paid                                  (90,439)           - 
                                                   -----------  ----------- 
          Net cash used in financing activities       (155,225)     (39,908)
                                                   -----------  ----------- 
Net increase (decrease) in cash and cash                                    
 equivalents                                          (122,614)      90,072 
Cash and cash equivalents, beginning of period         143,017       52,945 
                                                   -----------  ----------- 
Cash and cash equivalents, end of period           $    20,403  $   143,017 
                                                   ===========  =========== 
                                                                            
                                                                            
                                                                            
                Fisher Communications, Inc. and Subsidiaries                
                      GAAP to Non-GAAP Reconciliations                      
                          (Unaudited, in thousands)                         
                                                                            
The following table provides a reconciliation of income from operations     
(GAAP) to EBITDA (non-GAAP) and Adjusted EBITDA (non-GAAP) in each of the   
periods presented:                                                          
                                                                            
                               Three months ended          Year ended       
                                  December 31,            December 31,      
                              --------------------  ----------------------- 
                                 2012       2011        2012        2011    
                              ---------  ---------  -----------  ---------- 
                                                                            
Income from continuing                                                      
 operations                   $  13,666  $  50,467  $    22,766  $   62,626 
                                                                            
 Adjustments:                                                               
   Amortization of broadcast                                                
    rights                        2,463      2,484        9,835      10,808 
   Payments for broadcast                                                   
    rights                       (2,383)    (2,381)      (9,804)    (11,069)
   Depreciation and                                                         
    amortization                  1,749      1,537        6,990       9,564 
   Stock-based compensation       1,174        406        2,458       1,580 
   Loss on disposal of                                                      
    property, plant and                                                     
    equipment, net                   13        199          114         274 
   Gain on exchange of                                                      
    assets, net                       -        (32)           -         (32)
   Gain on sale of real                                                     
    estate, net                       -          -         (164)     (4,089)
   Gain on sale of Fisher                                                   
    Plaza, net                        -    (40,454)           -     (40,454)
   Plaza fire reimbursements,                                               
    net                               -          -            -        (223)
   Proxy related costs                -          -           79       1,639 
   Amortization of non-cash                                                 
    benefit resulting from                                                  
    change in national                                                      
    advertising                                                             
    representation firm            (365)      (365)      (1,461)     (1,461)
                                                                            
                              ---------  ---------  -----------  ---------- 
EBITDA (Non-GAAP)             $  16,317  $  11,861  $    30,813  $   29,163 
                              ---------  ---------  -----------  ---------- 
                                                                            
   Fisher Plaza rent expense      1,227        133        5,160         133 
   Plaza EBITDA                       -     (1,330)           -      (8,268)
                                                                            
                              ---------  ---------  -----------  ---------- 
Adjusted EBITDA (Non-GAAP)    $  17,544  $  10,664  $    35,973  $   21,028 
                              ---------  ---------  -----------  ---------- 
                                                                            
                                                                            
                                                                            
The following table provides a reconciliation of television income from     
 operations (GAAP) to television cash flow (non-GAAP) in each of the periods
 presented:                                                                 
                                                                            
                                     Three months ended      Year ended     
                                        December 31,        December 31,    
                                     ------------------  ------------------ 
                                       2012      2011      2012      2011   
                                     --------  --------  --------  -------- 
                                                                            
Television segment income from                                              
 continuing operations               $ 20,174  $ 13,285  $ 47,804  $ 31,498 
                                                                            
 Adjustments:                                                               
  Amortization of broadcast rights      2,463     2,484     9,835    10,808 
  Payments for broadcast rights        (2,383)   (2,381)   (9,804)  (11,069)
  Net trade and internet (income)                                           
   loss (1)                               420       (69)    1,194       404 
                                                                            
                                     --------  --------  --------  -------- 
Television broadcast cash flow (Non-                          
              
 GAAP)                               $ 20,674  $ 13,319  $ 49,029  $ 31,641 
                                     --------  --------  --------  -------- 
                                                                            
Television broadcast cash flow as a                                         
 percentage of television segment                                           
 revenue                                 44.2%     35.1%     33.3%     24.6%
                                     --------  --------  --------  -------- 
                                                                            
Television segment revenue           $ 46,744  $ 37,991  $147,344  $128,548 
                                     --------  --------  --------  -------- 
                                                                            
(1) Excludes multiplatform internet related revenue                         
                                                                            
                                                                            
                                                                            
The following table provides a reconciliation of radio income from          
 operations (GAAP) to television cash flow (non-GAAP) in each of the periods
 presented:                                                                 
                                                                            
                                                                            
                                    Three months ended       Year Ended     
                                       December 31,         December 31,    
                                   --------------------  ------------------ 
                                      2012       2011      2012      2011   
                                   ---------  ---------  --------  -------- 
                                                                            
Radio segment income from                                                   
 continuing operations             $   1,380  $   1,445  $  5,400  $  4,803 
                                                                            
 Adjustments:                                                               
  Net trade loss                          38        (14)      115        17 
                                                                            
                                   ---------  ---------  --------  -------- 
Radio broadcast cash flow (Non-                                             
 GAAP)                             $   1,418  $   1,431  $  5,515  $  4,820 
                                   ---------  ---------  --------  -------- 
                                                                            
Radio broadcast cash flow as a                                              
 percentage of radio segment                                                
 revenue                                25.9%      26.1%     26.3%     22.6%
                                   ---------  ---------  --------  -------- 
                                                                            
Radio segment revenue              $   5,469  $   5,480  $ 20,993  $ 21,356 
                                   ---------  ---------  --------  -------- 
                                                                            
                                                                            
                                                                            
The following table provides television net revenue comparisons in each of  
 the periods presented:                                                     
                                                                            
                                                                            
                                                                            
Television                                                                  
                                                                            
                                                                            
              Three months ended                  Year ended                
                 December 31,         %          December 31,        %      
              ------------------ ----------   ----------------- ----------  
                                  Increase                       Increase   
                2012      2011   (decrease)     2012     2011   (decrease)  
              -------- --------- ----------   -------- -------- ----------  
 Core                                                                       
  advertising                                                               
  (local and                                                                
  national)   $ 24,221 $  27,362        (11%) $ 94,138 $ 96,940         (3%)
 Political      12,876     3,508        267%    17,986    4,809        274% 
 Internet (1)    1,129     1,616        (30%)    4,929    5,574        (12%)
 Retrans-                                                               
  mission        6,090     3,367         81%    22,207   13,404         66% 
 Trade,                                                                     
  barter and                                                                
  other          2,428     2,138         14%     8,084    7,821          3% 
              -------- --------- ----------   -------- -------- ----------  
 Television                                                                 
  segment net                                                               
  revenue     $ 46,744 $  37,991         23%  $147,344 $128,548         15% 
              -------- --------- ----------   -------- -------- ----------  
                                                                            
 Television                                                                 
  segment net                                                               
  revenue,                                                                  
  excluding                                                                 
  political   $ 33,868 $  34,483         (2%) $129,358 $123,739          5% 
                                                                            
(1) Excludes multiplatform internet related revenue which is included within
core advertising                                                            
                                                                            
                                                                            
                                                                            
The following table provides radio net revenue comparisons in each of the   
 periods presented:                                                         
                                                                            
                                                                            
                                                                            
    Radio                                                                   
              Three months ended                 Year ended                 
                 December 31,         %          December 31,        %      
              ------------------ ----------   ----------------- ----------  
                                  Increase                       Increase   
                2012      2011   (decrease)     2012     2011   (decrease)  
              -------- --------- ----------   -------- -------- ----------  
 Core                                                                       
  advertising                                                               
  (local and                                                                
  national)    $ 4,844 $   4,928         (2%) $ 19,435 $ 19,879     
    (2%)
 Political         360       304         18%       540      453         19% 
 Trade,                                                                     
  barter and                                                                
  other            265       248          7%     1,018    1,024         (1%)
              -------- --------- ----------   -------- -------- ----------  
 Radio                                                                      
  segment net                                                               
  revenue      $ 5,469 $   5,480         (0%) $ 20,993 $ 21,356         (2%)
              -------- --------- ----------   -------- -------- ----------  
                                                                            
 Radio                                                                      
  segment net                                                               
  revenue,                                                                  
  excluding                                                                 
  political    $ 5,109 $   5,176         (1%) $ 20,453 $ 20,903         (2%)
                                                                            
                                                                            
                                                                            
The following table provides a reconciliation of net income (GAAP) to       
 adjusted net income, excluding the after tax impact on sale of Fisher      
 Plaza, net (non-GAAP) in each of the periods presented:                    
                                                                            
                                                                            
                                      Three months ended      Year ended    
                                         December 31,        December 31,   
                                     -------------------  ----------------- 
                                        2012      2011      2012     2011   
                                     --------- ---------  -------- -------- 
Net income                           $   8,576 $  33,102  $ 13,194 $ 36,435 
                                                                            
 Adjustments:                                                               
  Gain on sale of Fisher Plaza, net          -   (40,454)        -  (40,454)
  Tax impact on gain                         -    13,754         -   13,754 
                                     --------- ---------  -------- -------- 
Adjusted net income, excluding the                                          
 after tax impact on sale of Fisher                                         
 Plaza, net                          $   8,576 $   6,402  $ 13,194 $  9,735 
                                     ========= =========  ======== ======== 
                                                                            
                                                                            
Adjusted net income per share                                               
 assuming dilution, excluding the                                           
 after tax impact on sale of Fisher                                         
 Plaza, net                          $    0.96 $    0.72  $   1.47 $   1.09 
                                     ========= =========  ======== ======== 
                                                                            
Weighted average shares outstanding                                         
 assuming dilution                       8,928     8,914     8,948    8,904 
                                     ========= =========  ======== ======== 

  
Contacts: 
Addo Communications 
310-829-5400 
 
 
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