UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): August 6, 2008
SALEM COMMUNICATIONS CORPORATION
(Exact Name of Registrant as Specified in its Charter)
![[form8k8608001.jpg]](form8k8608001.jpg)
Delaware |
| 000-26497 |
| 77-0121400 |
(State or Other Jurisdiction |
| (Commission |
| (IRS Employer |
of Incorporation) |
| File Number) |
| Identification No.) |
4880 Santa Rosa Road, Camarillo, California |
| 93012 |
(Address of Principal Executive Offices) |
| (Zip Code) |
Registrant's telephone number, including area code: (805) 987-0400
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ]Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ]Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ]Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ]Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
TABLE OF CONTENTS
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
ITEM 7.01 REGULATION FD DISCLOSURE
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
SIGNATURE
EXHIBIT INDEX
Exhibit 99.1
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On August 6, 2008, Salem Communications Corporation issued a press release regarding its results of operations for the quarter ended June 30, 2008.
ITEM 7.01 REGULATION FD DISCLOSURE
On August 6, 2008, Salem Communications Corporation issued a press release regarding its results of operations for the quarter ended June 30, 2008.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits. The following exhibit is furnished with this report on Form 8-K:
Exhibit No. |
| Description |
99.1 |
| Press release, dated August 6, 2008, of Salem Communications Corporation regarding its results of operations for the quarter ended June 30, 2008. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
|
| SALEM COMMUNICATIONS CORPORATION |
|
|
|
Date: August 6, 2008 |
| By: /s/ EVAN D. MASYR |
|
| Evan D. Masyr |
|
| Senior Vice President and Chief Financial Officer |
EXHIBIT INDEX
Exhibit No. |
| Description |
99.1 |
| Press release, dated August 6, 2008, of Salem Communications Corporation regarding its results of operations for the quarter ended June 30, 2008. |
EXHIBIT 99.1
![[form8k8608002.jpg]](form8k8608002.jpg)
SALEM COMMUNICATIONS ANNOUNCES SECOND QUARTER 2008 TOTAL REVENUE OF $57.5 MILLION
CAMARILLO, CA August 6, 2008 – Salem Communications Corporation (Nasdaq: SALM), a leading U.S. radio broadcaster, Internet content provider, and magazine and book publisher targeting audiences interested in Christian and family-themed content and conservative values, today announced results for the three and six months ended June 30, 2008.
Second Quarter 2008 Results
For the quarter ended June 30, 2008 compared to the quarter ended June 30, 2007:
·
Total revenue decreased 2.2% to $57.5 million from $58.8 million;
·
Operating expenses decreased 1.6% to $47.2 million from $47.9 million;
·
Operating income decreased 5.0% to $10.3 million from $10.9 million;
·
Net income increased 20.5% to $3.5 million, or $0.15 net income per diluted share, from $2.9 million, or $0.12 net income per diluted share;
·
EBITDA increased 0.4% to $14.8 million from $14.7 million;
·
Adjusted EBITDA decreased 9.0% to $14.7 million from $16.2 million;
Broadcast
·
Net broadcast revenue decreased 5.1% to $49.9 million from $52.6 million;
·
Station operating income (“SOI”) decreased 9.0% to $18.0 million from $19.8 million;
·
Same station net broadcast revenue decreased 5.5% to $48.4 million from $51.2 million;
·
Same station SOI decreased 8.3% to $17.8 million from $19.5 million;
·
Same station SOI margin decreased to 36.8% from 38.0%;
Non-broadcast
·
Non-broadcast revenue increased 21.9% to $7.5 million from $6.2 million; and
·
Non-broadcast operating income decreased 18.0% to $0.7 million from $0.8 million.
Included in the results for the quarter ended June 30, 2008 are:
·
A $0.6 million income ($0.03 gain per diluted share), net of tax, from discontinued operations primarily consisting of:
o
A $0.8 million gain, net of tax, from the sale of WFZH-FM in Milwaukee, Wisconsin; and
o
The operating results of radio station WRFD-AM in Columbus, Ohio and CCM Magazine;
·
A $0.6 million non-cash compensation charge ($0.3 million, net of tax, or $0.01 per share) related to the expensing of stock options consisting primarily of:
o
$0.4 million non-cash compensation included in corporate expenses; and
o
$0.1 million non-cash compensation included in broadcast operating expenses.
Included in the results for the quarter ended June 30, 2007 are:
·
A $0.6 million loss ($0.4 million loss, net of tax, or $0.02 per share) on the disposal of assets; and
·
A $0.9 million non-cash compensation charge ($0.5 million, net of tax, or $0.02 per share) related to the expensing of stock options consisting primarily of:
o
$0.6 million non-cash compensation included in corporate expenses; and
o
$0.2 million non-cash compensation included in broadcast operating expenses.
These results reflect the reclassification of the operations of our Columbus, Ohio and Milwaukee, Wisconsin radio stations to discontinued operations for all periods presented. These stations had net broadcast revenue of approximately $1.0 million and generated a profit of $0.2 million for the quarter ended June 30, 2007 and net broadcast revenue of approximately $0.5 million and generated a profit of $0.1 million for the quarter ended June 30, 2008.
Additionally, these results reflect the reclassification of the operations of CCM Magazine to discontinued operations for all periods presented. The magazine had non-broadcast revenue of $0.2 million and generated a loss of $0.1 million for the quarter ended June 30, 2007 and net broadcast revenue of approximately $0.1 million and generated no profit for the quarter ended June 30, 2008.
Other comprehensive income of $2.0 million, net of tax, for the quarter ended June 30, 2008 and $1.1 million, net of tax, for the quarter ended June 30, 2007 is due to the change in fair market value of the company’s interest rate swaps.
Per share numbers are calculated based on 23,668,788 diluted weighted average shares for the quarter ended June 30, 2008, and 23,855,967 diluted weighted average shares for the comparable 2007 period.
Year to Date 2008 Results
For the six month period ended June 30, 2008 compared to the six month period ended June 30, 2007:
·
Total revenue decreased 1.8% to $111.5 million from $113.6 million;
·
Operating expenses decreased 2.9% to $88.4 million from $91.0 million;
·
Operating income increased 2.4% to $23.2 million from $22.6 million;
·
Net income increased 45.1% to $8.5 million, or $0.36 net income per diluted share, from $5.9 million or $0.25 net income per diluted share;
·
EBITDA increased 8.4% to $32.9 million from $30.4 million;
·
Adjusted EBITDA decreased 10.5% to $26.2 million from $29.3 million;
Broadcast
·
Net broadcast revenue decreased 4.2% to $97.9 million from $102.1 million;
·
SOI decreased 9.2% to $34.2 million from $37.6 million;
·
Same station net broadcast revenue decreased 4.8% to $94.5 million from $99.3 million;
·
Same station SOI decreased 8.2% to $33.9 million from $37.0 million;
·
Same station SOI margin decreased to 35.9% from 37.2%;
Non-broadcast
·
Non-broadcast revenue increased 19.1% to $13.7 million from $11.5 million; and
·
Non-broadcast operating income decreased 50.8% to $0.6 million from $1.2 million
Included in the results for the six month period ended June 30, 2008 are:
·
A $6.0 million gain primarily from the disposal of the assets of KTEK-AM in Houston, Texas ($3.4 million gain, net of tax, or $0.14 per diluted share);
·
A $2.1 million income ($0.09 gain per diluted share), net of tax, from discontinued operations consisting primarily of:
o
A $1.3 million gain, net of tax, from the sale of WRRD-AM in Milwaukee, Wisconsin;
o
A $0.8 million gain, net of tax, from the sale of WFZH-FM in Milwaukee, Wisconsin; and
o
The operating results of radio station WRFD-AM in Columbus, Ohio and the operating results of CCM Magazine;
·
A $1.3 million non-cash compensation charge ($0.7 million, net of tax, or $0.03 per share) related to the expensing of stock options consisting of:
o
$1.0 million non-cash compensation included in corporate expenses;
o
$0.2 million non-cash compensation included in broadcast operating expenses; and
o
$0.1 million non-cash compensation included in non-broadcast operating expenses.
Included in the results for the six month period ended June 30, 2007 are:
·
A $3.4 million pre-tax gain from the sale of selected assets of WKNR-AM in Cleveland, Ohio, partially offset by the pre-tax loss of $0.5 million recognized on the sale of radio station WVRY-FM, Nashville, Tennessee and various fixed asset disposals; and
·
A $1.6 million non-cash compensation charge ($0.9 million, net of tax, or $0.04 per share) related to the expensing of stock options consisting of:
o
$1.1 million non-cash compensation included in corporate expenses;
o
$0.4 million non-cash compensation included in broadcast operating expenses; and
o
$0.1 million non-cash compensation included in non-broadcast operating expenses.
These results reflect the reclassification of the operations of our Columbus, Ohio and Milwaukee, Wisconsin radio stations to discontinued operations for all periods presented. These stations had net broadcast revenue of approximately $1.9 million and generated a profit of $0.3 million for the six months ended June 30, 2007 and net broadcast revenue of approximately $1.3 million and generated a profit of $0.1 million for the six months ended June 30, 2008.
Additionally, these results reflect the reclassification of the operations of CCM Magazine to discontinued operations for all periods presented. The magazine had non-broadcast revenue of $0.6 million and generated no profit for the six months ended June 30, 2007 and non-broadcast revenue of approximately $0.4 million and generated a profit of $0.1 million for the six months ended June 30, 2008.
Other comprehensive loss $0.2 million, net of tax, for the six months ended June 30, 2008 and other comprehensive income of $0.8 million, net of tax, for the six months ended June 30, 2007 is due to the change in fair market value of the company's interest rate swaps.
Per share numbers are calculated based on 23,668,788 diluted weighted average shares for the six months ended June 30, 2008 and 23,854,518 diluted weighted average shares for the comparable 2007 period.
Balance Sheet
As of June 30, 2008, the company had net debt of $343.6 million and was in compliance with the covenants of its credit facilities and bond indentures. The company’s bank leverage ratio was 5.99 versus a compliance covenant of 6.75 and its bond leverage ratio was 6.03 versus a compliance covenant of 7.0.
Acquisitions and Divestitures
The following transactions were completed since April 1, 2008:
·
Three transmitter sites were acquired from principal shareholders on April 8, 2008 for approximately $5.0 million;
·
WMCU (1080 AM) in Miami, Florida was acquired for approximately $12.3 million on April 11, 2008 (Salem began operating the station under a local marketing agreement on October 18, 2007);
·
WFZH (105.3 FM) in Milwaukee, Wisconsin, was sold for $8.1 million on May 30, 2008 which resulted in a pre-tax gain of $1.4 million;
·
Intercristo.com was purchased for $1.2 million on June 6, 2008; and
·
WAMD (970 AM) in Baltimore, Maryland was acquired for approximately $2.7 million on July 18, 2008.
The following transactions are currently pending:
·
KKSN (910 AM) in Portland, Oregon will be acquired for approximately $4.5 million (Salem began operating this station under a local marketing agreement on February 1, 2007 with the call letters KTRO);
·
KKMO (1360 AM) in Seattle, Washington will be sold for approximately $3.7 million; and
·
WRFD (880 AM) in Columbus, Ohio will be sold for approximately $4.0 million.
Third Quarter 2008 Outlook
For the third quarter of 2008, Salem is projecting total revenue to decrease in the low-single digit range over third quarter 2007 total revenue of $56.9 million. Salem is also projecting operating expenses before gain or loss on disposal of assets to be flat as compared to the third quarter of 2007 operating expenses of $46.6 million.
Conference Call Information
Salem will host a teleconference to discuss its results today, on August 6, 2008 at 2:00 p.m. Pacific Time. To access the teleconference, please dial (973) 582-2717 or listen via the investor relations portion of the company’s website, located at www.salem.cc. A replay of the teleconference will be available through August 20, 2008 and can be heard by dialing (706) 645-9291, pass code 56241726 or on the investor relations portion of the company’s website, located at www.salem.cc.
In addition to its radio properties, Salem owns Salem Radio Network®, which syndicates talk, news and music programming to approximately 2,000 affiliates; Salem Radio Representatives™, a national radio advertising sales force; Salem Web Network™, an Internet provider of Christian content and online streaming; and Salem Publishing™, a publisher of Christian-themed magazines. Upon the close of all announced transactions, the company will own 94 radio stations, including 58 stations in 23 of the top 25 markets. Additional information about Salem may be accessed at the company’s website, www.salem.cc.
Company Contact:
Tomasita Aranda
Salem Communications
(805) 987-0400 ext. 1067
tomasitaa@salem.cc
Forward Looking Statements
Statements used in this press release that relate to future plans, events, financial results, prospects or performance are forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those anticipated as a result of certain risks and uncertainties, including but not limited to the ability of Salem to close and integrate announced transactions, market acceptance of Salem’s radio station formats, competition from new technologies, adverse economic conditions, and other risks and uncertainties detailed from time to time in Salem's reports on Forms 10-K, 10-Q, 8-K and other filings filed with or furnished to the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Salem undertakes no obligation to update or revise any forward-looking statements to reflect new information, changed circumstances or unanticipated events.
Regulation G
Station operating income, non-broadcast operating income, EBITDA and Adjusted EBITDA are financial measures not prepared in accordance with generally accepted accounting principles (“GAAP”). Station operating income is defined as net broadcast revenues minus broadcast operating expenses. Non-broadcast operating income is defined as non-broadcast revenue minus non-broadcast operating expenses. EBITDA is defined as net income before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA before discontinued operations (net of tax), gain or loss on the disposal of assets and non-cash compensation expense. In addition, Salem has provided supplemental information as an attachment to this press release, reconciling these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with GAAP. The company believes these non-GAAP financial measures, when considered in conjunction with the most directly comparable GAAP financial measures, provide useful measures of the company’s operating performance.
Station operating income, non-broadcast operating income, EBITDA and Adjusted EBITDA are generally recognized by the broadcast industry as important measures of performance and are used by investors as well as analysts who report on the industry to provide meaningful comparisons between broadcast. Station operating income, non-broadcast operating income, EBITDA and Adjusted EBITDA are not a measure of liquidity or of performance in accordance with GAAP, and should be viewed as a supplement to and not a substitute for, or superior to, the company’s results of operations presented on a GAAP basis such as operating income and net income. In addition, Salem’s definitions of station operating income, non-broadcast operating income, EBITDA and Adjusted EBITDA are not necessarily comparable to similarly titled measures reported by other companies.
Salem Communications Corporation |
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Condensed Consolidated Statements of Operations |
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(in thousands, except share, per share and margin data) |
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| Three Months Ended |
| Six Months Ended | ||
| June 30, |
| June 30, | ||
| 2007 | 2008 |
| 2007 | 2008 |
| (unaudited) | ||||
Net broadcast revenue | $ 52,594 | $ 49,938 |
| $ 102,137 | $ 97,855 |
Non-broadcast revenue | 6,174 | 7,524 |
| 11,462 | 13,654 |
Total revenue | 58,768 | 57,462 |
| 113,599 | 111,509 |
Operating expenses: |
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|
Broadcast operating expenses | 32,788 | 31,906 |
| 64,498 | 63,692 |
Non-broadcast operating expenses | 5,351 | 6,849 |
| 10,309 | 13,087 |
Corporate expenses | 5,496 | 4,482 |
| 11,310 | 9,759 |
Depreciation and amortization | 3,652 | 3,903 |
| 7,505 | 7,818 |
(Gain) loss on disposal of assets | 631 | 10 |
| (2,638) | (6,004) |
Total operating expenses | 47,918 | 47,150 |
| 90,984 | 88,352 |
Operating income | 10,850 | 10,312 |
| 22,615 | 23,157 |
Other income (expense): |
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Interest income | 48 | 113 |
| 108 | 134 |
Interest expense | (6,308) | (5,488) |
| (12,762) | (11,562) |
Other income (expense), net | 182 | (49) |
| 147 | (100) |
Income from continuing operations before income taxes | 4,772 | 4,888 |
| 10,108 | 11,629 |
Provision for income taxes | 1,896 | 1,996 |
| 4,337 | 5,135 |
Income from continuing operations | 2,876 | 2,892 |
| 5,771 | 6,494 |
Income from discontinued operations, net of tax | 48 | 632 |
| 118 | 2,053 |
Net income | $ 2,924 | $ 3,524 |
| $ 5,889 | $ 8,547 |
Other comprehensive income (loss), net of tax | 1,112 | 1,961 |
| 824 | (183) |
Comprehensive income | $ 4,036 | $ 5,485 |
| $ 6,713 | $ 8,364 |
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Basic income per share before discontinued operations | $ 0.12 | $ 0.12 |
| $ 0.24 | $ 0.27 |
Income from discontinued operations, net of tax | $ - | $ 0.03 |
| $ - | $ 0.09 |
Basic income per share after discontinued operations | $ 0.12 | $ 0.15 |
| $ 0.25 | $ 0.36 |
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Diluted income per share before discontinued operations | $ 0.12 | $ 0.12 |
| $ 0.24 | $ 0.27 |
Income from discontinued operations, net of tax | $ - | $ 0.03 |
| $ - | $ 0.09 |
Diluted income per share after discontinued operations | $ 0.12 | $ 0.15 |
| $ 0.25 | $ 0.36 |
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Basic weighted average shares outstanding | 23,850,020 | 23,668,788 |
| 23,849,312 | 23,668,788 |
Diluted weighted average shares outstanding | 23,855,967 | 23,668,788 |
| 23,854,518 | 23,668,788 |
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Other Data: |
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Station operating income | $ 19,806 | $ 18,032 |
| $ 37,639 | $ 34,163 |
Station operating margin | 37.7% | 36.1% |
| 36.9% | 34.9% |
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Salem Communications Corporation |
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Condensed Consolidated Balance Sheets |
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(in thousands) |
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| December 31, |
| June 30, |
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| 2007 |
| 2008 |
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| (unaudited) |
Assets |
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Cash |
| $ 447 |
| $ 278 |
Trade accounts receivable, net |
| 30,030 |
| 30,321 |
Deferred income taxes |
| 5,567 |
| 5,479 |
Other current assets |
| 3,256 |
| 4,808 |
Assets of discontinued operations |
| 8,829 |
| 198 |
Property, plant and equipment, net |
| 130,857 |
| 137,541 |
Intangible assets, net |
| 492,156 |
| 500,076 |
Bond issue costs |
| 444 |
| 370 |
Bank loan fees |
| 1,994 |
| 1,488 |
Other assets |
| 6,218 |
| 7,234 |
Total assets |
| $ 679,798 |
| $ 687,793 |
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Liabilities and Stockholders' Equity |
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Current liabilities |
| $ 26,290 |
| $ 33,399 |
Long-term debt and capital lease obligations |
| 350,106 |
| 335,005 |
Deferred income taxes |
| 61,381 |
| 67,462 |
Other liabilities |
| 8,843 |
| 9,071 |
Stockholders' equity |
| 233,178 |
| 242,856 |
Total liabilities and stockholders' equity |
| $ 679,798 |
| $ 687,793 |
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Salem Communications Corporation |
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Supplemental Information |
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(in thousands) |
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| Three Months Ended |
| Six Months Ended | ||
| June 30, |
| June 30, | ||
| 2007 | 2008 |
| 2007 | 2008 |
| (unaudited) | ||||
Capital expenditures |
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Acquisition related / income producing | $ 2,047 | $ 1,427 |
| $ 3,771 | $ 2,801 |
Maintenance | 2,287 | 1,056 |
| 4,962 | 2,613 |
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Total capital expenditures | $ 4,334 | $ 2,483 |
| $ 8,733 | $ 5,414 |
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Tax information |
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Cash tax expense | $ 47 | $ 371 |
| $ 215 | $ 309 |
Deferred tax expense | 1,849 | 1,625 |
| 4,122 | 4,826 |
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Provision for income taxes | $ 1,896 | $ 1,996 |
| $ 4,337 | $ 5,135 |
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Tax benefit of non-book amortization | $ 3,936 | $ 3,714 |
| $ 8,112 | $ 7,841 |
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Reconciliation of Same Station Net Broadcast Revenue to |
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Total Net Broadcast Revenue |
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Net broadcast revenue - same station | $ 51,242 | $ 48,449 |
| $ 99,275 | $ 94,543 |
Net broadcast revenue - acquisitions | 71 | 426 |
| 121 | 936 |
Net broadcast revenue - dispositions | 244 | 93 |
| 540 | 346 |
Net broadcast revenue - format changes | 1,037 | 970 |
| 2,201 | 2,030 |
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Total net broadcast revenue | $ 52,594 | $ 49,938 |
| $ 102,137 | $ 97,855 |
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Reconciliation of Same Station Broadcast Operating Expenses to |
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Total Broadcast Operating Expenses |
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Broadcast operating expenses - same station | $ 31,773 | $ 30,605 |
| $ 62,325 | $ 60,634 |
Broadcast operating expenses - acquisitions | 76 | 322 |
| 176 | 774 |
Broadcast operating expenses - dispositions | 119 | 113 |
| 346 | 239 |
Broadcast operating expenses - format changes | 820 | 866 |
| 1,651 | 2,045 |
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Total broadcast operating expenses | $ 32,788 | $ 31,906 |
| $ 64,498 | $ 63,692 |
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Reconciliation of Same Station Station Operating Income to |
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Total Station Operating Income |
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Station operating income - same station | $ 19,469 | $ 17,844 |
| $ 36,950 | $ 33,909 |
Station operating income - acquisitions | (5) | 104 |
| (55) | 162 |
Station operating income - dispositions | 125 | (20) |
| 194 | 107 |
Station operating income - format changes | 217 | 104 |
| 550 | (15) |
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Total station operating income | $ 19,806 | $ 18,032 |
| $ 37,639 | $ 34,163 |
Salem Communications Corporation |
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Supplemental Information |
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(in thousands) |
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| Three Months Ended |
| Six Months Ended | ||
| June 30, |
| June 30, | ||
| 2007 | 2008 |
| 2007 | 2008 |
| (unaudited) | ||||
Reconciliation of Station Operating Income and Non-Broadcast |
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Operating Income to Operating Income |
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Station operating income | $ 19,806 | $ 18,032 |
| $ 37,639 | $ 34,163 |
Non-broadcast operating income | 823 | 675 |
| 1,153 | 567 |
Less: |
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Corporate expenses | (5,496) | (4,482) |
| (11,310) | (9,759) |
Depreciation and amortization | (3,652) | (3,903) |
| (7,505) | (7,818) |
Gain (loss) on disposal of assets | (631) | (10) |
| 2,638 | 6,004 |
Operating income | $ 10,850 | $ 10,312 |
| $ 22,615 | $ 23,157 |
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Reconciliation of Adjusted EBITDA to EBITDA to Net Income |
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Adjusted EBITDA | $ 16,195 | $ 14,745 |
| $ 29,263 | $ 26,186 |
Less: |
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Stock-based compensation | (880) | (569) |
| (1,634) | (1,315) |
Discontinued operations, net of tax | 48 | 632 |
| 118 | 2,053 |
Gain (loss) on disposal of assets | (631) | (10) |
| 2,638 | 6,004 |
EBITDA | 14,732 | 14,798 |
| 30,385 | 32,928 |
Plus: |
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Interest income | 48 | 113 |
| 108 | 134 |
Less: |
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Depreciation and amortization | (3,652) | (3,903) |
| (7,505) | (7,818) |
Interest expense | (6,308) | (5,488) |
| (12,762) | (11,562) |
Provision for income taxes | (1,896) | (1,996) |
| (4,337) | (5,135) |
Net income | $ 2,924 | $ 3,524 |
| $ 5,889 | $ 8,547 |
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| Applicable |
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| Outstanding | Interest |
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| at 6/30/2008 | Rate |
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Selected Debt and Swap Data |
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7 3/4% senior subordinated notes | $ 100,000 | 7.75% |
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Senior bank term loan B debt (1) | 71,990 | 4.50% |
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Senior bank term loan C debt (swap matures 7/1/2012) (2) | 30,000 | 6.74% |
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Senior bank term loan C debt (swap matures 7/1/2012) (2) | 30,000 | 6.45% |
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Senior bank term loan C debt (swap matures 7/1/2012) (2) | 30,000 | 6.28% |
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Senior bank term C debt (at variable rates) (1) | 71,678 | 4.44% |
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Senior bank revolving debt (1) | 7,000 | 4.25% |
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Swingline credit facility (3) | 891 | 4.75% |
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(1) Subject to rolling LIBOR plus a spread currently at 1.75% and incorporated into the rate set forth above. |
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(2) Under its swap agreements, the Company pays a fixed rate plus a spread based on the Company's leverage, as defined in its |
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credit agreement. As of June 30, 2008, that spread was 1.75% and is incorporated into the applicable interest rates set |
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forth above. |
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(3) Subject to prime interest rate less 0.25%. |
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