SOURCE: Fisher Communications, Inc.

November 01, 2007 09:00 ET

Fisher Communications Announces Continued Revenue Improvement With Third Quarter 2007 Results

SEATTLE, WA--(Marketwire - November 1, 2007) - Fisher Communications, Inc. (NASDAQ: FSCI) today announced its financial results for the three-month and nine-month periods ended September 30, 2007.

Revenues for the third quarter of 2007 were $40.8 million, reflecting an increase of $2.1 million or five percent over the third quarter of 2006. For the nine months of 2007, total revenue increased $6.4 million, or six percent, compared to the same period of 2006.

Television revenue increased $1.1 million, or four percent, in the third quarter of 2007, over the third quarter of 2006. Radio revenue increased $679,000, or six percent, in the same quarter-over-quarter period. On a year-to-date basis, television and radio revenue increased five percent and three percent, respectively, compared to the same period of 2006.

Fisher Plaza revenue increased 19 percent in the third quarter and 28 percent in the first nine months of 2007, primarily as a result of increased average occupancy, rental rates and services fees compared to the same periods of 2006. Fisher Plaza occupancy was 96 percent as of September 30, 2007.

"The third quarter of 2007 continued our trend of revenue growth," said Colleen B. Brown, president and chief executive officer of Fisher Communications. "The revenue increase was driven by Fisher's expanding efforts in Spanish-language television, increased broadcast advertising, increased rental income from Fisher Plaza, and an improved news performance. During the final quarter of the year, we will grow our Univision affiliated stations revenue and expand our Internet presence."


Third Quarter 2007 Highlights and Recent Developments

--  On July 17, 2007, the Company announced its acquisition of Pegasus News,
    a Dallas-based online local news company.  A pioneer of hyper-local media,
    Pegasus News specializes in providing personalized local news, information,
    and advertising.  Fisher plans to take Pegasus' news, information and
    advertising model to additional U.S. markets in the coming year.
    
--  On August 6, 2007, the Company announced its agreement to purchase KBAK-
    TV (CBS affiliate) and KBFX-CA (Fox affiliate), a unique media duopoly in
    Bakersfield, California, from Westwind Communications, LLC, for
    approximately $55 million.
    
--  On August 27, 2007, the Company announced that Nancy J. Bruner will lead
    the Company's interactive businesses, as vice president of Fisher
    Interactive Networks.  Ms. Bruner is a seasoned media executive with
    expertise in Internet business development, strategic market development,
    product development, and media management.
    
--  On September 27, 2007, the Company announced that Jim Clayton has been
    named vice president general manager of Fisher Seattle.  Clayton added
    Fisher's Seattle radio stations KOMO 1000 News, STAR 101.5 and 570 KVI to
    his current responsibilities as vice president and general manager of KOMO
    4 and KUNS-TV.  Clayton will also be responsible for the joint sales
    agreements with KING FM and KKOL in Seattle.
    

Net Income from Continuing and Discontinued Operations

Net loss for the third quarter of 2007 was $533,000, compared to a net loss of $671,000 in the third quarter of 2006. In both years, third quarter net loss was comprised of continuing and discontinued operations. Third quarter 2007 loss from continuing operations was $601,000, compared to $784,000 for third quarter 2006, which included tax expense adjustments of $448,000 and $388,000, respectively, as a result of IRS audits of prior year federal tax returns. Discontinued operations reflect the after-tax operating results attributable to the Company's small-market radio stations sold or held for sale. In the second quarter of 2007, the Company sold one of the remaining six radio stations held for sale for $3.0 million. Income from discontinued operations includes a gain on the sale of $1.5 million (net of tax) for the nine months ending September 30, 2007.

Loss from continuing operations for the nine months ending September 30, 2007, was $1.2 million, compared to $779,000 for the same period of 2006. Including income from discontinued operations, consolidated net income was $478,000, compared to a net loss of $104,000 in the same period of 2006.


About Fisher Communications

Fisher Communications, Inc. is a Seattle-based communications company that owns and manages twelve full power and seven low-power television stations and eight radio stations in the Pacific Northwest. The Company owns and operates Fisher Pathways, a satellite and fiber transmission provider; Fisher Plaza, a media, telecommunications, and data center facility located near downtown Seattle; and Pegasus News, an online start-up and hyper-local media pioneer based in Dallas. For more information about Fisher Communications, Inc., go to www.fsci.com.

Forward-looking statement

This release may contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. A more detailed description of certain factors that could affect actual results include, but are not limited to, those discussed in Fisher Communications' most recent Annual Report on Form 10-K and quarterly reports on Form 10-Q as filed from time to time with the Securities and Exchange Commission ("SEC"). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Fisher Communications undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.


FISHER COMMUNICATIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                  Nine months ended    Three months ended
(in thousands, except per-share      September 30          September 30
 amounts) Unaudited                2007       2006       2007       2006
                                =========  =========  =========  =========
Revenue                         $ 116,340  $ 109,983  $  40,798  $  38,712
Costs and expenses
  Direct operating costs           41,920     38,993     13,870     13,595
  Selling, general and
   administrative expenses         43,285     40,139     15,052     13,689
  Amortization of program rights   16,804     16,418      7,370      7,082
  Depreciation and amortization     8,668      7,515      2,811      2,488
                                ---------  ---------  ---------  ---------
                                  110,677    103,065     39,103     36,854
                                ---------  ---------  ---------  ---------
Income from operations              5,663      6,918      1,695      1,858
Other income, net                   3,683      2,814      1,387      1,047
Interest expense                  (10,222)   (10,396)    (3,318)    (3,574)
                                ---------  ---------  ---------  ---------
Loss from continuing operations
 before income taxes                 (876)      (664)      (236)      (669)
Provision for federal and state
 income taxes                         294        115        365        115
                                ---------  ---------  ---------  ---------
Loss from continuing operations    (1,170)      (779)      (601)      (784)
Income from discontinued
 operations, net of income
 taxes                              1,648        675         68        113
                                ---------  ---------  ---------  ---------
Net income (loss)               $     478  $    (104) $    (533) $    (671)
                                =========  =========  =========  =========

Income (loss) per share:
  From continuing operations    $   (0.14) $   (0.09) $   (0.07) $   (0.09)
  From discontinued operations       0.19       0.08       0.01       0.01
                                ---------  ---------  ---------  ---------
  Basic and diluted net income
   (loss) per share             $    0.05  $   (0.01) $   (0.06) $   (0.08)
                                =========  =========  =========  =========

Shares used in computation of
 basic and diluted net
 income (loss) per share            8,722      8,711      8,724      8,716



FISHER COMMUNICATIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

                                                  September 30  December 31
(in thousands) Unaudited                              2007         2006
                                                  ============ ============
Assets
  Current assets                                  $     51,455 $     57,058
  Marketable securities, at market value               184,394      188,307
  Other assets                                         110,601      104,005
  Property, plant and equipment, net                   146,499      148,207
                                                  ------------ ------------
Total assets                                      $    492,949 $    497,577
                                                  ============ ============
Liabilities and stockholders' equity
  Current liabilities                             $     22,905 $     26,044
  Long-term debt                                       150,000      150,000
  Deferred income taxes                                 53,651       54,414
  Other liabilities                                     28,346       27,554
                                                  ------------ ------------
Total liabilities                                      254,902      258,012
                                                  ------------ ------------
  Stockholders' equity, other than accumulated
   other comprehensive income                          121,097      120,071
  Accumulated other comprehensive income, net of
   income taxes                                        116,950      119,494
                                                  ------------ ------------
Total stockholders' equity                             238,047      239,565
                                                  ------------ ------------
Total liabilities and stockholders' equity        $    492,949 $    497,577
                                                  ============ ============