SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES AND EXCHANGE ACT OF 1934
October 11, 2000
Date of Report
(Date of earliest event reported)
OBIE MEDIA CORPORATION
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(Exact name of registrant as specified in its charter)
Oregon 000-21623 93-0966515
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(State of Incorporation) (Commission File No.) (IRS Employer Ident. No.)
4211 West 11th Avenue, Eugene, Oregon 97402
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(Address of principal executive offices)
(541) 686-8400
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(Registrant's telephone number)
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ITEM 1 - CHANGES IN CONTROL OF REGISTRANT
Not Applicable.
ITEM 2 - ACQUISITION OR DISPOSITION OF ASSETS
Not Applicable.
ITEM 3 - BANKRUPTCY OR RECEIVERSHIP
Not Applicable.
ITEM 4 - CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT
Not Applicable.
ITEM 5 - OTHER EVENTS
See "EARNINGS RELEASE"
Item 6 - RESIGNATIONS OF REGISTRANT'S DIRECTORS
Not Applicable.
Item 7 - FINANCIAL STATEMENTS AND EXHIBITS
See "Consolidated Financial Information"
Item 8 - CHANGES IN FISCAL YEAR
Not Applicable.
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[Obie Media Logo]
Obie Media Corporation (Corporate Headquarters)
4211 West 11th Avenue, Eugene, Oregon 97402-5435
P (541) 686-8400, F (541) 345-4339
Obie Media Limited (Canada)
3280 Production Way, Burnaby, British Columbia V5A 4R4
P (604)444-4900, F (604) 528-6251
October 11, 2000
EARNINGS RELEASE
CONTACT: Tobin Robbins, Senior Vice President/Administration
(541) 686-8400
OBIE MEDIA REPORTS A 34.6% INCREASE (EXCLUDING ONE TIME GAINS)
IN EBITDA ON A 33.1% INCREASE IN GROSS REVENUE
EUGENE, Ore. -- Obie Media Corp. (Nasdaq: OBIE), a leading provider of
out-of-home advertising products and services in North America, reported that
gross revenue for the quarter ended August 31, 2000 increased 33.1% to
$14,314,509 compared to $10,757,118 for the same period last year. Revenue from
transit advertising increased 36.8% to $12,568,186 compared to $9,187,179 in the
third quarter of fiscal 1999. The company reported net income for the quarter of
$634,174 ($.11 per share) compared to a net income of $544,132 ($.11 per share)
for the third quarter of 1999, an increase of 16.5 percent. The results for 1999
included a pre-tax gain of $191,528 ($116,862 after the effect of income taxes)
associated with a negotiated settlement for damages resulting from the early
termination of the company's previous contract with the Tri County Metropolitan
Transit District (Tri-Met) in Portland, Oregon. EBITDA (earnings before
interest, taxes, depreciation and amortization, a common measurement in
out-of-home media companies) increased 17.9 percent to $1,816,384 for the third
quarter of 2000 from $1,540,590 for the same period in 1999. Excluding the
effect of the Tri-Met settlement, EBITDA increased $467,322 or 34.6 percent.
Gross revenue for the nine months of fiscal 2000 increased 28.6% to
$36,190,420 compared to $28,144,727 for the same period last year. Revenue from
transit advertising increased 31.5% to $31,236,535 compared to $23,761,395 in
the first nine months of fiscal 1999. The company reported net income for the
nine months ended August 31, 2000 of $945,157 ($.16 per share) compared to
$1,414,864 ($.29 per share) for the same period of fiscal 1999. The results for
1999 included a pre-tax gain associated with the Tri-Met settlement of
$1,077,469 ($657,256 after the effect of the income taxes). Excluding the
effects of the Tri-Met settlement, net income for the nine months ended August
31, 1999 would have been $757,608 ($.15 per share).
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EBITDA for the first nine months of fiscal 2000 was $3,689,066 compared
to $4,252,795 for the same period in fiscal 1999. Excluding the effects of the
Tri-Met settlement, EBITDA would have been $3,175,326 in fiscal 1999.
Early in the year Obie Media began to ramp up its local sales effort in
many of its markets, and now employs over 120 sales people throughout the United
States and Canada, a fifty-percent increase from just twelve months ago. In
addition, Obie Media's three national sales offices have achieved a 25% increase
in sales in the first nine months of 2000 over the equivalent period in 1999.
These extra sales efforts played a significant part in the renewal of five
transit contracts during the first nine months of fiscal 2000, including
Vancouver, B.C., Stockton and Sacramento, California, Austin, Texas, and the
contract covering Hartford, Stamford and New Haven, Connecticut. Brian B. Obie,
Chairman and Chief Executive Officer of Obie Media, expressed his excitement
about the course the company is taking. "We set out a year ago to significantly
strengthen our local and national sales efforts, and we're happy to have
achieved the results we hoped for. These operations are obviously paying
dividends, creating positive results for both our customers and investors. I am
very optimistic about the future, both in terms of earnings and growth."
About Obie Media
Obie Media Corporation is a leading full-service out-of-home
advertising company based in Eugene, Oregon. The company sells, designs,
produces and installs out-of-home advertising displays which include transit
posters, billboards, wallscapes, transit shelters and bus benches throughout the
United States and Canada.
Obie Media's common stock is traded on the Nasdaq National Market under
the symbol "OBIE." For more information, please contact Tobin Robbins, Senior
Vice President/Administration, at 4211 West 11th Avenue, Eugene, Oregon
97402-5435. Telephone: (800) 233-6243 or (541) 686-8400. Fax: (541) 683-3212.
Web: www.obie.com. ------------ This news release may contain certain
forward-looking statements that involve a number of risks and uncertainties. The
company's actual results could differ materially from the forward-looking
statements. Factors that could cause or contribute to such differences include
failure to successfully conclude negotiations on pending transactions or to
successfully assimilate expanded operations, inability to generate advertising
revenues to meet contractual guarantees, and cancellation or interruption of
contracts with governmental agencies, as well as those factors described from
time to time in the company's SEC reports, including, but not limited to,
Exhibit 99.1 incorporated by reference in the company's Form 10-KSB for fiscal
1999.
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<TABLE>
<CAPTION>
OBIE MEDIA CORPORATION - Consolidated Financial Information
Three Months Ended August 31, Nine Months Ended August 31,
2000 1999 2000 1999
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<S> <C> <C> <C> <C>
REVENUES:
Transit advertising $12,568,186 $9,187,179 $31,236,535 $23,761,395
Outdoor advertising 1,746,323 1,569,939 4,953,885 4,383,332
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Gross revenue 14,314,509 10,757,118 36,190,420 28,144,727
Less - Agency commissions (1,288,677) (1,117,276) (3,290,034) (2,775,011)
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Net revenues 13,025,832 9,639,842 32,900,386 25,369,716
OPERATING EXPENSES:
Direct advertising expenses 9,402,547 6,970,318 24,143,847 18,266,418
General and administrative 1,789,404 1,161,717 4,988,876 3,473,445
Contract settlement 0 (191,528) 0 (1,077,469)
Start-up costs 17,497 158,745 78,597 454,527
Depreciation and amortization 491,546 363,686 1,346,786 1,086,582
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Operating income 1,324,838 1,176,904 2,342,280 3,166,213
OTHER (INCOME) EXPENSE:
Interest expense 285,238 284,880 792,841 846,765
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Income before income taxes 1,039,600 892,024 1,549,439 2,319,448
PROVISION FOR INCOME TAXES 405,426 347,892 604,282 904,584
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NET INCOME $634,174 $544,132 $945,157 $1,414,864
============= ============= ============== ============
Earnings per share:
Basic $0.11 $0.11 $0.16 $0.29
Diluted $0.11 $0.11 $0.16 $0.29
Other Data:
Net income (1) 634,174 427,300 945,157 757,608
Operating income (1) 1,324,838 985,376 2,342,280 2,088,744
EBITDA (1 & 2) 1,816,384 1,349,062 3,689,066 3,175,326
After cash tax flow (1 & 2) 1,410,958 1,001,170 3,084,784 2,270,742
Earnings per share (1) $0.11 $0.08 $0.16 $0.15
Weighted average shares outstanding 5,920,549 5,043,506 5,930,421 4,924,550
</TABLE>
(1) Amounts for the three and nine moneriods ended Au 31, 1999, exclude
the effect of gains totaling $191,528 ($116,832 after taxes) and $1,077,469
($657,256 after taxes), respectively, associated with a negotiated
settlement for damages resulting from the early termination of the
company's previous contract with the Tri-County Metropolitan Transit
District (Tri-Met) in Portland, Oregon.
(2) "EBITDA" (earnings before interest, taxes, depreciation and amortization)
and "After-tax cash flow" are commonly used measures by out-of-home media
companies. They should not be considered in isolation or as a substitute
for cash flow from operating activities or cash flow statement data
prepared in accordance with generally accepted accounting principles.
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OBIE MEDIA CORPORATION
FORM 8-K
Signatures
In accordance with the requirements of the Securities and Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
OBIE MEDIA CORPORATION
Date: October 11, 2000
/s/Tobin Robbins
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Tobin Robbins,
Senior Vice President/Administration
