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Annual Report 2007

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Annual Report 2007 Annual Report 2007 • Bellingham, WA Portland, ME • Keene, NH Brattleboro, VT • •• Manchester, NH Ithaca, NY • Mitchell, SD • • Yankton, SD Greenfield, MA • Milwaukee, WI • Northampton, MA • Spencer, IA Springfield, MA NORTHAMPTON, MA Bucyrus, OH SPRINGFIELD, MA Des Moines, IA • • Champaign, IL • • Columbus, OH • Springfield, IL Charlottesville, VA • • Norfolk, VA • Joplin, MO • Hopkinsville, KY • Clarksville, TN • Asheville, NC Jonesboro, AR • • Greenville, MS • Victoria, TX MARKET INFORMATION ASHEVILLE, NC GREENVILLE, MS MITCHELL, SD Randy Cable, Vice President/General Manager Darren Lehrmann, AVP/General Manager Tim Smith, Vice President/General Manager WOXL-FM WISE-AM WXVT-TV KMIT-FM KUQL-FM WYSE-AM WTMT-FM ILLINOIS NORFOLK, VA BELLINGHAM, WA Dennis Mellott, President/General Manager Dave Paulus, President/General Manager Rick Staeb, President/General Manager ILLINOIS RADIO NETWORK WNOR-FM WJOI-AM WAFX-FM KISM-FM KAFE-FM KBAI-AM ITHACA, NY NORTHAMPTON, MA KGMI-AM KPUG-AM Susan Johnston, AVP/General Manager Sean O’Mealy, AVP/General Manager BRATTLEBORO, VT WYXL-FM WQNY-FM WIII-FM WRSI-FM WHMP-AM Mike Trombly, AVP/General Manager WNYY-AM WHCU-AM PORTLAND, ME WKVT-FM WKVT-AM WRSY-FM JONESBORO, AR Cary Pahigian, President/General Manger BUCYRUS, OH Trey Stafford, President/General Manager WMGX-FM WGAN-AM WYNZ-FM Debbi Gifford, AVP/General Manager KEGI-FM KDXY-FM KJBX-FM WZAN-AM WPOR-FM WBAE-AM WBCO-AM WQEL-FM JOPLIN, MO WVAE-AM WCLZ-FM CHAMPAIGN, IL Danny Thomas, President/General Manager SPENCER, IA Alan Beck, President/General Manager KOAM-TV KFJX-TV(1) Dave Putnam, Vice President/General Manager WLRW-FM WCFF-FM KEENE, NH KICD-AM KLLT-FM KICD-FM WXTT-FM WIXY-FM Bob Cox, Vice President/General Manager SPRINGFIELD, IL CHARLOTTESVILLE, VA WKNE-FM WSNI-FM WINQ-FM Leanne Arndt, AVP/General Manager Renee Quesenberry, Vice President/General Manager WZBK-AM WKBK-AM WYMG-FM WQQL-FM WDBR-FM WWWV-FM WVAX-AM WCNR-FM MANCHESTER, NH WABZ-FM WTAX-AM WINA-AM WQMZ-FM Ray Garon, President/General Manager SPRINGFIELD, MA CLARKSVILLE, TN WZID-FM WMLL-FM WFEA-AM Gary Zenobi, Vice President/General Manager Katie Gambill, AVP/General Manager MICHIGAN WAQY-FM WHNP-AM WLZX-FM WCVQ-FM WKFN-AM WEGI-FM Dennis Mellott, President/General Manager VICTORIA, TX WJQI-AM WZZP-FM WVVR-FM MICHIGAN RADIO NETWORK Jeff Pryor, President/General Manager COLUMBUS, OH MICHIGAN FARM RADIO NETWORK KAVU-TV KUNU-LPTV KVTX-LPTV Alan Goodman, President/General Manager MILWAUKEE, WI KXTS-LPTV KVCT-TV(2) KMOL-LPTV WSNY-FM WODB-FM Tom Joerres, President/General Manager YANKTON, SD WJZA-FM WJZK-FM WKLH-FM WHQG-FM WJZX-FM Bill Holst, Vice President/General Manager DES MOINES, IA WJMR-FM WJYI-AM WNAX-AM WNAX-FM Bill Wells, Vice President/General Manager MINNESOTA KSTZ-FM KRNT-AM KIOA-FM Dennis Mellott, President/General Manager KAZR-FM KPSZ-AM KLTI-FM MINNESOTA RADIO NETWORK (1) Operated under a Shared Services Agreement GREENFIELD, MA MINNESOTA FARM RADIO NETWORK (2) Operated under a Time Brokerage Agreement Dan Guin, AVP/General Manager WHAI-FM WHMQ-AM WPVQ-FM A LETTER FROM ED CHRISTIAN “It was the best of times, it was the worst of times; it was the age of wisdom, it was the age of foolishness; it was the epoch of belief, it was the epoch of incredulity; it was the season of Light, it was the season of Darkness; it was the spring of hope, it was the winter of despair; we had everything before us, we had nothing before us; we were all going directly to Heaven, we were all going the other way.” Somehow, starting out with a classic quote from Coupled with the above is the fact that we have an Charles Dickens seems appropriate for this year’s letter economy that is giving consumers pause. Historically to our shareholders. Much has been written in broadcast our industry is more recession resistant than other trade publications about the differences in operating media. Good businesses realize that, in soft times, and selling in major markets versus smaller markets. choosing not to advertise is a self fulfilling prophecy of In today’s economic climate, it is far more challenging declining sales. to operate in larger markets, while our smaller markets continue to perform very well. I have worked through difficult times before in my forty plus years in broadcasting. Every time, despite paradigm Quality has traditionally been the hallmark of good shifts and new technologies, radio and television have broadcasting. In major markets, however, the broadcast survived and continued to serve the public. industry has become very transactional with little regard for quality. Selling in these markets has been reduced It is all about attitude. Trey Stafford, the President of to sales rates, packaging stations, and value added our Triple FM radio group in Jonesboro, Arkansas, had promotions. In our smaller markets, we continue to do a soft 2007. So far in 2008, he is setting a new record. well because our sales are based on the relationships I asked him why and his response was simple, “We we have with our clients. We operate with the adage tried a recession in Jonesboro in 2007 and didn’t like that, “If we don’t deliver results, then we are not doing it.” At our five radio station group in Ithaca, New York, our job.” We work hard to deliver and enjoy repeat our market manager Susan Johnston was asked if she business from clients who know that advertising on was seeing any signs of a recession there. She replied, Saga stations delivers clients and sales results. “We never mention the word. We never discuss it. We only focus on ways of improving the businesses of our With this said, we are not wringing our hands and advertisers.” joining a Greek chorus shouting “woe, woe.” We are working diligently to deliver the message to our fellow This attitude is prevalent throughout Saga and why broadcasters that we must restore the pride in major our 2007 performance still gives us much to be markets and restore the professionalism in selling. proud of. Walt Kelly, the creator of the comic strip “Pogo,” had What we have going for us is first and foremost our another quote that I want to share: “We have met the localism. We touch lives. People depend on their local enemy and he is us.” radio and TV stations. We have a public trust that we embrace. It is a simple formula -- do creative things to We can’t blame advertising agencies for taking serve the local public and people will watch and listen. advantage of us. Their job is to negotiate the best rates If they do, you can sell advertising with confidence and for their clients. the assurance that it can and will work. In fact, more national commercials were sold in 2007 Last year we continued our commitment to all of the than in 2006 (this from a report by Katz Media) but the communities that we serve. In Des Moines, IA our station dollar amount was less. Eventually our industry will LITE 104.1 sponsored the Festival of Trees and Lights. realize that it cannot feast upon itself and, when that Over 20,000 people attended raising over $400,000 in happens, we will return to a more rational sense of donations for the Blank Children’s Hospital. Also in Des operations. Currently we are in the epic of incredulity. Moines, KIOA continued their work with the Shoes that Fit program. The program provides shoes and clothing All of us at Saga continue to embrace quality radio to children in need. Over the years, KIOA’s involvement and television. Although we are watching our expenses, in this program has helped 28,800 children attend school gaining efficiencies, and continuing to reduce expenses with comfort and dignity. where possible, we do not believe that we can markedly reduce our expenses without affecting performance. Bob Washel, Executive Director of the Buncombe We have challenged our managers to be operationally County Schools Foundation in Asheville, NC, writes, efficient with their stations. “I am writing this letter in support of the tremendous job Asheville Radio Group has done in support of our We take very seriously the challenges we face in our organization. I have made numerous requests of the major markets. We are intensely focused on the Norfolk station to donate airtime, prizes and employee time for and Columbus markets and have developed strategies our fundraising events. Each time that I asked I was to advance their sales. met with a hardy ’No problem.’ The best part is that the members of the stations are true to their word – a value Yes, there are challenges. There are also opportunities. that isn’t necessarily the norm in today’s society.” As a very conservatively financed company, we are poised to take advantage of those opportunities. The Greater Keene Chamber of Commerce awarded our Monadnock Radio Group in Keene, NH their Business of There are a lot of dynamics at work in both radio and the Year Award, “in recognition of the group’s outstanding television today. Local radio and television are the fiber contributions to the economic strength, community health of American towns. This will not change. and social well-being of the Greater Keene Area.” I am confident in the future of Saga. John Adams said it In Milwaukee, Dave and Carol’s Miracle Marathon best, “Patience and perseverance have a magical effect raised $1.4 million for the second straight year for the before which difficulties disappear and obstacles vanish.” Children’s Hospital of Wisconsin.
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