Company has fourth quarter revenue of $8.4 million, up 23%, due to improved advertising, including political. Full year revenue is $17.6 million, up 13%.
Fisher Communications Inc. today announced its financial results for the fourth quarter and annual periods ended Dec. 31, 2006, and reported that during 2006 it was profitable for the first time in five years from continuing operations.
Fisher’s revenue increased $8.4 million, or 23%, for the quarter, compared to the same quarter in 2005. Political advertising contributed to the revenue increase as well as improved local advertising initiatives for both the English and Spanish language stations. For the full year, revenue increased $17.6 million, or 13%, in comparison to 2005.
“We are pleased with the outcome of a year filled with aggressive initiatives. The 2006 results and asset alignment have set the foundation for Fisher to build on an attractive business structure going forward,” stated Colleen Brown, president and CEO of Fisher Communications.
Fourth quarter income from operations increased to $12.1 million from a loss of $228,000 in the same quarter of 2005. Year-to-date income from operations increased to $19 million from a loss of $5.6 million in 2005. Fourth quarter 2005 selling, general and administrative expenses include a $4.3 million non-cash charge to third-party agency commissions. The non-cash contract termination charge was a result of Fisher’s decision in December 2005 to change its national advertising sales agency for television operations. The termination amount will be amortized over the five-year term of the agreements with the successor agency as a decrease to agency expense.
During the fourth quarter of 2006, the company closed on the sale of 18 out of 24 small-market radio stations located in Montana and Eastern Washington for $26.1 million. The remaining six stations were excluded from the original sale in order to secure FCC approval, but continue to be held for sale. The operating results for this group of stations are reported as discontinued operations.
Also announced in fourth quarter 2006, Fisher finalized its purchase of two Oregon television stations for $19.3 million, through a like-kind exchange of the sold radio properties mentioned above. This transaction was initially announced in December 2005 and included the purchase of two Idaho television stations that was finalized in May 2006.
The company reported consolidated net income of $16.9 million for fourth quarter 2006. This included both continuing and discontinued operations. Fourth quarter 2006 income from continuing operations was $7.0 million, compared to income from continuing operations for fourth quarter 2005 of $1.6 million. Income from discontinued operations in fourth quarter 2006 of $9.9 million reflects the after-tax sale gain of $10 million, compared to income from discontinued operations of $321,000 in fourth quarter 2005.
2006 consolidated net income was $16.8 million in comparison to a 2005 consolidated net loss of $5.1 million. Income from continuing operations for the full year ended December 31, 2006 was $6.3 million, compared to a loss from continuing operations for the year ended December 31, 2005 of $6.1 million. Income from 2006 discontinued operations was $10.6 million, which includes an after-tax gain of $10.0 million, compared to income from 2005 discontinued operations of $1.1 million.