Regent Communications’ Q2 net broadcast revenues decreased 14.0% to $22.8 million from $26.5 million. For the same period, station operating expenses decreased 9.7% to $14.8 million in 2009 compared to $16.4 million in 2008. The company reported net income of $3.2 million for the quarter, or $0.08 per share, compared with reported net income of $5.7 million, or $0.14 per share, in the same period last year. Results for 2009 and 2008 were impacted by realized and unrealized gains and losses on derivatives.
Bill Stakelin, Regent CEO, said with the continuing trend of the soft ad market, most estimates put trending for radio groups to be down in the high teens, with many expecting it to be in the low 20’s. “So once again, Regent Communications continues our five-year trend of outperforming the industry. That holds up also when you take a look at the markets where we are doing business. For those that are measured, for Q2, we outperformed those markets over 350 basis points, prior year.”
He added, “In this environment, Regent is working very hard, and I think very smart, to maximize our performance with the goal of supporting our free cash flow and ultimately reducing our debt. We have steadfastly adhered to our local strategy of aggressively seeking to expand the in-market revenue shares we have across our entire portfolio—especially with direct accounts—while very carefully controlling our costs.”
For the first six months of 2009, net broadcast revenues decreased 13.3% to $41.0 million compared to $47.3 million in 2008. For the same period, station operating expenses decreased 8.1% to $28.7 million in 2009 from $31.2 million in 2008. The company reported a net loss of $29.3 million for the first six months of 2009, or $0.73 per share, compared with reported net income of $2.7 million, or $0.07 per share, in 2008. Results for 2009 include a pre-tax non-cash impairment charge of $31.8 million related to the company’s review of its indefinite-lived intangible assets and goodwill.