GROSSE POINTE FARMS, Mich.,
May 5, 2016 /PRNewswire/ -- Saga
Communications, Inc. (NYSE MKT: SGA) today reported free cash flow
increased 35.4% to $4.9 million for
the quarter ended March 31, 2016. Net
revenue increased 12.7% to $32.8
million. Operating Income increased 40.1% to $5.3 million. Station operating expense increased
8.4% to $24.7 million (station
operating expense includes depreciation and amortization
attributable to the stations). Same Station net revenue increased
7.0% to $31.0 million and same
station operating expense increased 3.0% to $23.2 million. Net income for the period
was $3.0 million ($0.52 per fully diluted share compared to
$0.36 for the same period last
year).
Capital expenditures were $1
million in the 1st quarter which was
approximately comparable to the same period last year. The
Company currently expects to spend approximately $5.0 million to $5.5 million for capital
expenditures during 2016.
During the 1st Quarter the Company closed on its
purchase of WLVQ-FM in Columbus,
OH for $13 million. The
Company began operating WLVQ – FM pursuant to a Local Marketing
Agreement as of November 16,
2015.
Saga's 2016 1st Quarter conference call will be on Thursday, May 5, 2016 at 11:00 a.m. EDT. The dial-in number for the call
is (612) 332-0345. A transcript of the call will be posted to the
Company's website as soon as it is available after the
call.
The Company requests that all parties that have a question that
they would like to submit to the Company to please email the
inquiry by 10:00 a.m. EDT on
May 5, 2016 to SagaIR@sagacom.com.
The Company will discuss, during the limited period of the
conference call, those inquiries it deems of general relevance and
interest. Only inquiries made in compliance with the foregoing will
be discussed during the call.
The attached Selected Supplemental Financial Data tables
disclose "actual", "same station" and "proforma" information by
segment as well as the Company's trailing 12 month consolidated
EBITDA. The "actual" amounts reflect our historical financial
results and include the results of operations for stations that we
did not own for the entire comparable period. The "same station"
amounts reflect only the results of operations for stations that we
owned for the entire comparable period. The "proforma" amounts
assume all acquisitions and dispositions in 2015 and 2016 occurred
as of January 1, 2015.
Saga utilizes certain financial measures that are not calculated
in accordance with generally accepted accounting principles (GAAP)
to assess its financial performance. Such non-GAAP measures include
same station financial information, free cash flow, trailing 12
month consolidated EBITDA, and leverage ratio. These non-GAAP
measures are generally recognized by the broadcasting industry as
measures of performance and are used by Saga to assess its
financial performance including, but not limited to, evaluating
individual station and market-level performance, evaluating overall
operations, as a primary measure for incentive based compensation
of executives and other members of management and as a measure of
financial position. Saga's management believes these non-GAAP
measures are used by analysts who report on the industry and by
investors to provide meaningful comparisons between broadcasting
groups, as well as an indicator of their market value. These
measures are not measures of liquidity or of performance in
accordance with GAAP, and should be viewed as a supplement to and
not as a substitute for the results of operations presented on a
GAAP basis including net operating revenue, operating income, and
net income. Reconciliations for all of the non-GAAP financial
measures to the most directly comparable GAAP measure are attached
in the Selected Consolidated and Supplemental Financial Data
tables.
This press release contains certain forward-looking statements
that are based upon current expectations and involve certain risks
and uncertainties within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995. Words such as "believes," "expects,"
"anticipates," "guidance" and similar expressions are intended to
identify forward-looking statements. Key risks, including risks
associated with Saga's ability to effectively integrate the
stations it acquires and the impact of federal regulation on Saga's
business, are described in the reports Saga periodically files with
the U.S. Securities and Exchange Commission, including Item 1A of
our Annual Report on Form 10-K. Readers should note that these
statements may be impacted by several factors, including national
and local economic changes and changes in the radio and television
broadcast industry in general, as well as Saga's actual
performance. Results may vary from those stated herein and Saga
undertakes no obligation to update the information contained
here.
Saga is a broadcasting company whose business is devoted to
acquiring, developing and operating broadcast properties. Saga owns
or operates broadcast properties in 26 markets, including 67 FM and
32 AM radio stations, 4 television stations and 5 low-power
television stations. For additional information, contact us at
(313) 886-7070 or visit our website at www.sagacom.com.
Saga
Communications, Inc.
|
Selected
Consolidated Financial Data
|
For The Three
Months Ended
|
March 31, 2016 and
2015
|
(amounts in 000's
except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
|
|
2016
|
2015
|
Operating
Results
|
|
|
|
Net operating
revenue
|
|
$
32,745
|
$ 29,061
|
Station operating
expense
|
|
24,685
|
22,765
|
Corporate general and
administrative
|
|
2,717
|
2,482
|
Operating
income
|
|
5,343
|
3,814
|
Interest
expense
|
|
189
|
241
|
Other
income
|
|
-
|
(8)
|
Income before income
tax expense
|
|
5,154
|
3,581
|
Income tax
expense
|
|
2,130
|
1,450
|
Net income
|
|
$
3,024
|
$
2,131
|
|
|
|
|
|
Earnings Per
Share
|
|
|
|
|
Basic
|
|
$
0.52
|
$
0.37
|
|
Diluted
|
|
$
0.52
|
$
0.36
|
|
|
|
|
|
Weighted average
common shares
|
|
5,751
|
5,710
|
Weighted average
common and common
|
|
|
|
|
equivalent
shares
|
|
5,759
|
5,762
|
|
|
|
|
|
Free Cash
Flow
|
|
|
|
Net
income
|
|
$
3,024
|
$
2,131
|
Plus: Depreciation
and amortization:
|
|
|
|
|
Station
|
|
1,667
|
1,521
|
|
Corporate
|
|
69
|
68
|
Deferred tax provision
|
|
575
|
360
|
Non-cash compensation
|
|
528
|
462
|
Other income
|
|
-
|
(8)
|
Less: Capital
expenditures
|
|
(1,010)
|
(950)
|
Free cash
flow
|
|
$
4,853
|
$
3,584
|
|
|
|
|
|
|
|
|
March
31,
|
|
|
|
2016
|
2015
|
Balance Sheet
Data
|
|
|
|
|
Working
capital
|
|
$
25,003
|
$ 33,262
|
|
Net fixed
assets
|
|
$
57,924
|
$ 54,557
|
|
Net intangible assets
and other assets
|
|
$
110,795
|
$ 93,477
|
|
Total
assets
|
|
$
209,727
|
$ 195,548
|
|
Long-term
debt
|
|
$
36,365
|
$ 36,078
|
|
Stockholders'
equity
|
|
$
125,162
|
$ 116,897
|
Saga
Communications, Inc.
|
Selected
Supplemental Financial Data
|
For the Three
Months Ended
|
March 31, 2016 and
2015
|
(amounts in 000's
except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual
|
|
Same Station
(1)
|
|
Pro Forma
(2)
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
March
31,
|
|
March
31,
|
|
March
31,
|
|
|
2016
|
2015
|
|
2016
|
2015
|
|
2016
|
2015
|
Consolidated
|
|
|
|
|
|
|
|
|
Net operating
revenue
|
$ 32,745
|
$ 29,061
|
|
$ 31,008
|
$ 28,991
|
|
$ 32,745
|
$ 31,015
|
Station operating
expense
|
24,685
|
22,765
|
|
23,221
|
22,551
|
|
24,700
|
24,457
|
Corporate general and
administrative
|
2,717
|
2,482
|
|
2,717
|
2,482
|
|
2,717
|
2,482
|
Other operating
(income) expense, net
|
-
|
-
|
|
(2)
|
-
|
|
-
|
-
|
Operating
income
|
5,343
|
3,814
|
|
$ 5,072
|
$ 3,958
|
|
5,328
|
4,076
|
Interest
expense
|
189
|
241
|
|
|
|
|
189
|
241
|
Other
income
|
-
|
(8)
|
|
|
|
|
-
|
(8)
|
Income before income
tax expense
|
5,154
|
3,581
|
|
|
|
|
5,139
|
3,843
|
Income tax
expense
|
2,130
|
1,450
|
|
|
|
|
2,124
|
1,557
|
Net
income
|
$ 3,024
|
$ 2,131
|
|
|
|
|
$ 3,015
|
$ 2,286
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
Basic
|
$
0.52
|
$ 0.37
|
|
|
|
|
$
0.52
|
$
0.40
|
Diluted
|
$
0.52
|
$ 0.36
|
|
|
|
|
$
0.52
|
$
0.40
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual
|
|
Same Station
(1)
|
|
Pro Forma
(2)
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
March
31,
|
|
March
31,
|
|
March
31,
|
|
|
2016
|
2015
|
|
2016
|
2015
|
|
2016
|
2015
|
Radio
Segment
|
|
|
|
|
|
|
|
|
Net operating
revenue
|
$ 27,464
|
$ 24,276
|
|
$ 25,727
|
$ 24,206
|
|
$ 27,464
|
$ 26,230
|
Station operating
expense
|
21,140
|
19,422
|
|
19,676
|
19,208
|
|
21,155
|
21,114
|
Other operating
(income) expense, net
|
(3)
|
-
|
|
(5)
|
-
|
|
(3)
|
-
|
Operating
income
|
$ 6,327
|
$ 4,854
|
|
$ 6,056
|
$ 4,998
|
|
$ 6,312
|
$ 5,116
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual
|
|
Same Station
(1)
|
|
Pro Forma
(2)
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
March
31,
|
|
March
31,
|
|
March
31,
|
|
|
2016
|
2015
|
|
2016
|
2015
|
|
2016
|
2015
|
Television
Segment
|
|
|
|
|
|
|
|
|
Net operating
revenue
|
$ 5,281
|
$ 4,785
|
|
$ 5,281
|
$ 4,785
|
|
$ 5,281
|
$ 4,785
|
Station operating
expense
|
3,545
|
3,343
|
|
3,545
|
3,343
|
|
3,545
|
3,343
|
Other operating
(income) expense, net
|
3
|
-
|
|
3
|
-
|
|
3
|
-
|
Operating
income
|
$ 1,733
|
$ 1,442
|
|
$ 1,733
|
$ 1,442
|
|
$ 1,733
|
$ 1,442
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual
|
|
Same Station
(1)
|
|
Pro Forma
(2)
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
March
31,
|
|
March
31,
|
|
March
31,
|
|
|
2016
|
2015
|
|
2016
|
2015
|
|
2016
|
2015
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
by
segment
|
|
|
|
|
|
|
|
|
Radio
Segment
|
$ 1,346
|
$ 1,174
|
|
$ 1,151
|
$ 1,166
|
|
$ 1,361
|
$ 1,381
|
Television
Segment
|
321
|
347
|
|
321
|
347
|
|
321
|
347
|
Corporate and
Other
|
69
|
68
|
|
69
|
68
|
|
69
|
68
|
|
|
$ 1,736
|
$ 1,589
|
|
$ 1,541
|
$ 1,581
|
|
$ 1,751
|
$ 1,796
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Same station includes
only the results of stations we owned and operated for the entire
comparable period.
|
|
|
|
(2)
|
Pro Forma results
assume all acquisitions and dispositions in 2015 and 2016 occurred
as of January 1, 2015.
|
|
|
|
Saga
Communications, Inc.
|
Selected
Supplemental Financial Data
|
March 31,
2016
|
(amounts in 000's
except ratios)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
Plus:
|
|
|
|
Trailing
|
|
|
12 Mos
Ended
|
|
3 Mos
Ended
|
|
3 Mos
Ended
|
|
Add:
|
|
12 Mos
Ended
|
|
|
December
31,
|
|
March
31,
|
|
March
31,
|
|
Proforma
|
|
March
31,
|
|
|
2015
|
|
2015
|
|
2016
|
|
Acquisitions
|
|
2016
|
Trailing 12 Month
Consolidated Earnings Before Interest
|
|
|
|
|
|
|
|
|
|
Taxes,
Depreciation and Amortization ("EBITDA") (1)
|
|
|
|
|
|
|
|
|
|
Net income
|
$13,414
|
|
$2,131
|
|
$3,024
|
|
$703
|
|
$15,010
|
Exclusions:
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on sale
of assets
|
(541)
|
|
8
|
|
-
|
|
|
|
(549)
|
|
Gain on insurance
claim
|
417
|
|
-
|
|
-
|
|
|
|
417
|
|
Impairment of
intangible assets
|
(874)
|
|
-
|
|
-
|
|
|
|
(874)
|
|
Write-off of debt
issuance costs
|
(557)
|
|
-
|
|
-
|
|
|
|
(557)
|
|
Other
|
119
|
|
21
|
|
70
|
|
|
|
168
|
Total
exclusions
|
(1,436)
|
|
29
|
|
70
|
|
0
|
|
(1,395)
|
Consolidated adjusted
net income (1)
|
14,850
|
|
2,102
|
|
2,954
|
|
703
|
|
16,405
|
Plus: Interest
expense
|
888
|
|
241
|
|
189
|
|
|
|
836
|
|
Income tax
expense
|
9,640
|
|
1,450
|
|
2,130
|
|
489
|
|
10,809
|
|
Depreciation &
amortization expense
|
6,824
|
|
1,589
|
|
1,736
|
|
378
|
|
7,349
|
|
Amortization of
television syndicated programming contracts
|
637
|
|
162
|
|
158
|
|
|
|
633
|
|
Non-cash stock based
compensation expense
|
1,655
|
|
462
|
|
528
|
|
|
|
1,721
|
Less: Cash television
programming payments
|
(635)
|
|
(159)
|
|
(158)
|
|
|
|
(634)
|
Trailing twelve month
consolidated EBITDA (1)
|
$33,859
|
|
$5,847
|
|
$7,537
|
|
$1,570
|
|
$37,119
|
|
|
|
|
|
|
|
|
|
|
|
Total long-term debt,
including current maturities
|
|
|
|
|
|
|
|
|
$36,365
|
Divided by trailing
twelve month consolidated EBITDA (1)
|
|
|
|
|
|
|
|
|
37,119
|
Leverage
ratio
|
|
|
|
|
|
|
|
|
1.0
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
As defined in the
Company's credit facility.
|
|
|
|
|
|
|
|
|
|
|
|
Saga
Communications, Inc.
|
|
|
Selected Financial
Data Non-GAAP Disclosures
|
|
|
For the Three
Months Ended
|
|
|
March 31, 2016 and
2015
|
|
|
(amounts in
000's)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Actual (historical) Information to Same Station Operating
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustment
|
|
|
|
|
|
Adjustment
|
|
|
|
|
|
|
Actual
|
|
For
Acquisitions
|
|
Same
Station
|
|
Actual
|
|
For
Acquisitions
|
|
Same
Station
|
|
|
|
|
Three
Months
|
|
and
Dispositions
|
|
Three
Months
|
|
Three
Months
|
|
and
Dispositions
|
|
Three
Months
|
|
|
|
|
Ended
|
|
Not Included
in
|
|
Ended
|
|
Ended
|
|
Not Included
in
|
|
Ended
|
|
|
|
|
March
31,
|
|
Entire
Comparable
|
|
March
31,
|
|
March
31,
|
|
Entire
Comparable
|
|
March
31,
|
|
|
|
|
2016
|
|
Period
|
|
2016
|
|
2015
|
|
Period
|
|
2015
|
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating
revenue
|
$
32,745
|
|
$
(1,737)
|
|
$
31,008
|
|
$
29,061
|
|
$
(70)
|
|
$
28,991
|
|
|
Station operating
expense
|
24,685
|
|
(1,464)
|
|
23,221
|
|
22,765
|
|
(214)
|
|
22,551
|
|
|
Corporate general and
administrative
|
2,717
|
|
-
|
|
2,717
|
|
2,482
|
|
-
|
|
2,482
|
|
|
Other operating
(income) expense, net
|
-
|
|
(2)
|
|
(2)
|
|
-
|
|
-
|
|
-
|
|
|
Operating
income
|
$
5,343
|
|
$
(271)
|
|
$
5,072
|
|
$
3,814
|
|
$
144
|
|
$
3,958
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
$
1,736
|
|
$
(195)
|
|
$
1,541
|
|
$
1,589
|
|
$
(8)
|
|
$
1,581
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustment
|
|
|
|
|
|
Adjustment
|
|
|
|
|
|
|
Actual
|
|
For
Acquisitions
|
|
Same
Station
|
|
Actual
|
|
For
Acquisitions
|
|
Same
Station
|
|
|
|
|
Three
Months
|
|
and
Dispositions
|
|
Three
Months
|
|
Three
Months
|
|
and
Dispositions
|
|
Three
Months
|
|
|
|
|
Ended
|
|
Not Included
in
|
|
Ended
|
|
Ended
|
|
Not Included
in
|
|
Ended
|
|
|
|
|
March
31,
|
|
Entire
Comparable
|
|
March
31,
|
|
March
31,
|
|
Entire
Comparable
|
|
March
31,
|
|
|
|
|
2016
|
|
Period
|
|
2016
|
|
2015
|
|
Period
|
|
2015
|
|
|
Radio
Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating
revenue
|
$
27,464
|
|
$
(1,737)
|
|
$
25,727
|
|
$
24,276
|
|
$
(70)
|
|
$
24,206
|
|
|
Station operating
expense
|
21,140
|
|
(1,464)
|
|
19,676
|
|
19,422
|
|
(214)
|
|
19,208
|
|
|
Other operating
(income) expense, net
|
(3)
|
|
(2)
|
|
(5)
|
|
-
|
|
-
|
#
|
-
|
|
|
Operating
income
|
$
6,327
|
|
$
(271)
|
|
$
6,056
|
|
$
4,854
|
|
$
144
|
|
$
4,998
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
$
1,346
|
|
$
(195)
|
|
$
1,151
|
|
$
1,174
|
|
$
(8)
|
|
$
1,166
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustment
|
|
|
|
|
|
Adjustment
|
|
|
|
|
|
|
Actual
|
|
For
Acquisitions
|
|
Same
Station
|
|
Actual
|
|
For
Acquisitions
|
|
Same
Station
|
|
|
|
|
Three
Months
|
|
and
Dispositions
|
|
Three
Months
|
|
Three
Months
|
|
and
Dispositions
|
|
Three
Months
|
|
|
|
|
Ended
|
|
Not Included
in
|
|
Ended
|
|
Ended
|
|
Not Included
in
|
|
Ended
|
|
|
|
|
March
31,
|
|
Entire
Comparable
|
|
March
31,
|
|
March
31,
|
|
Entire
Comparable
|
|
March
31,
|
|
|
|
|
2016
|
|
Period
|
|
2016
|
|
2015
|
|
Period
|
|
2015
|
|
|
Television
Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating
revenue
|
$
5,281
|
|
$
-
|
|
$
5,281
|
|
$
4,785
|
|
$
-
|
|
$
4,785
|
|
|
Station operating
expense
|
3,545
|
|
-
|
|
3,545
|
|
3,343
|
|
-
|
|
3,343
|
|
|
Other operating
(income) expense,
net
|
3
|
|
-
|
|
3
|
|
-
|
|
-
|
|
-
|
|
|
Operating
income
|
$
1,733
|
|
$
-
|
|
$
1,733
|
|
$
1,442
|
|
$
-
|
|
$
1,442
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
$
321
|
|
$
-
|
|
$
321
|
|
$
347
|
|
$
-
|
|
$
347
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/saga-communications-inc-reports-1st-quarter-2016-results-300263513.html
SOURCE Saga Communications, Inc.