GROSSE POINTE FARMS, Mich.,
May 10, 2019 /PRNewswire/
-- Saga Communications, Inc. (Nasdaq: SGA) today reported net
revenue decreased $193 thousand to
$27.8 million and free cash flow
increased $324 thousand to
$2.6 million for the quarter ended
March 31, 2019. Station
operating expense decreased $234
thousand to $23.2 million and
operating income decreased $354
thousand to $2.0 million for
the same period. Net income decreased $159 thousand to $1.4
million for the quarter ended March
31, 2019. Diluted earnings per share were $0.23/share in the first quarter of 2019 compared
to $0.26/share during the same period
in 2018.
The results for the quarter were affected by the purchase of the
radio stations in the Gainesville
– Ocala, FL radio market on
December 31, 2018.
On a same station basis for the quarter ended March 31, 2019 net revenue decreased $1.2 million to $26.8
million. Operating income decreased $463 thousand to $1.9
million and station operating expense decreased $1.1 million to $22.3
million.
The Company had $39.2 million in
cash on hand as of March 31, 2019 and
$40.7 million as of May 6, 2019. The Company's total bank debt
was $15 million as of the end of the
quarter. Including the recent $0.30 per share dividend which was paid on
March 29, 2019, the Company will have
paid over $64 million in dividends
since December 3, 2012.
Capital expenditures were $1.2
million in the first quarter of 2019 compared to
$1.5 million for the same period last
year. The Company expects to spend approximately $5.0 to $5.5
million for capital expenditures during 2019.
Saga's 2019 1st Quarter conference call will be on
Friday, May 10, 2019 at 11:00 a.m. EDT. The dial-in number for the
call is 612/234-9959. 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 10, 2019 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 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 in 2018 and 2019 occurred as of January 1, 2018.
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 consolidated net
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 27 markets, including
79 FM radio stations, 34 AM radio stations and 77 metro signals.
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, 2019 and
2018
|
(amounts in 000's
except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
|
|
2019
|
2018
|
Operating
Results
|
|
|
|
Net operating
revenue
|
|
$
27,816
|
$
28,009
|
Station operating
expense
|
|
23,163
|
23,397
|
Corporate general and
administrative
|
|
2,685
|
2,544
|
Other operating
expense (income), net
|
|
3
|
(251)
|
Operating
income
|
|
1,965
|
2,319
|
Interest
expense
|
|
208
|
219
|
Interest
income
|
|
(163)
|
(89)
|
Income before income
tax expense
|
|
1,920
|
2,189
|
Income tax
expense
|
|
550
|
660
|
Net income
|
|
$
1,370
|
$
1,529
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
Basic
|
|
$
0.23
|
$
0.26
|
|
Diluted
|
|
$
0.23
|
$
0.26
|
|
|
|
|
|
Weighted average
common shares
|
|
5,841
|
5,842
|
Weighted average
common and common
|
|
|
|
|
equivalent
shares
|
|
5,841
|
5,842
|
|
|
|
|
|
Free Cash
Flow
|
|
|
|
Net
income
|
|
$
1,370
|
$
1,529
|
Plus: Depreciation
and amortization:
|
|
|
|
|
Radio
Stations
|
|
1,640
|
1,580
|
|
Corporate
|
|
71
|
66
|
Deferred tax provision
|
|
180
|
310
|
Non-cash compensation
|
|
559
|
551
|
Other operating expense (income), net
|
|
3
|
(251)
|
Less: Capital
expenditures
|
|
(1,212)
|
(1,498)
|
Free cash
flow
|
|
$
2,611
|
$
2,287
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
|
|
2019
|
2018
|
Balance Sheet
Data
|
|
|
|
|
Working
capital
|
|
$
45,256
|
$
56,206
|
|
Net fixed
assets
|
|
$
58,739
|
$
56,320
|
|
Net intangible assets
and other assets
|
|
$
127,041
|
$
116,108
|
|
Total
assets
|
|
$
245,453
|
$
241,078
|
|
Long-term
debt
|
|
$
15,000
|
$
25,000
|
|
Stockholders'
equity
|
|
$
185,326
|
$
179,921
|
Saga
Communications, Inc.
|
Selected
Supplemental Financial Data
|
For the Three
Months Ended
|
March 31, 2019 and
2018
|
(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,
|
|
|
2019
|
2018
|
|
2019
|
2018
|
|
2019
|
2018
|
Operating
Results
|
|
|
|
|
|
|
|
|
Net operating
revenue
|
$
27,816
|
$
28,009
|
|
$
26,830
|
$
28,009
|
|
$
27,816
|
$
28,975
|
Station operating
expense
|
23,163
|
23,397
|
|
22,286
|
23,397
|
|
23,163
|
24,232
|
Corporate general and
administrative
|
2,685
|
2,544
|
|
2,685
|
2,544
|
|
2,685
|
2,544
|
Other operating
expense (income), net
|
3
|
(251)
|
|
3
|
(251)
|
|
3
|
(251)
|
Operating
income
|
1,965
|
2,319
|
|
$
1,856
|
$
2,319
|
|
1,965
|
2,450
|
Interest
expense
|
208
|
219
|
|
|
|
|
208
|
219
|
Interest
income
|
(163)
|
(89)
|
|
|
|
|
(163)
|
(89)
|
Income before income
tax expense
|
1,920
|
2,189
|
|
|
|
|
1,920
|
2,320
|
Income tax
expense
|
550
|
660
|
|
|
|
|
550
|
699
|
Net
income
|
$
1,370
|
$
1,529
|
|
|
|
|
$
1,370
|
$
1,621
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
Basic
|
$
0.23
|
$
0.26
|
|
|
|
|
$
0.23
|
$
0.27
|
Diluted
|
$
0.23
|
$
0.26
|
|
|
|
|
$
0.23
|
$
0.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual
|
|
Same Station
(1)
|
|
Pro Forma
(2)
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
March
31,
|
|
March
31,
|
|
March
31,
|
|
|
2019
|
2018
|
|
2019
|
2018
|
|
2019
|
2018
|
Depreciation and
amortization:
|
|
|
|
|
|
|
|
|
Radio
Stations
|
$
1,640
|
$
1,580
|
|
$
1,491
|
$
1,580
|
|
$
1,640
|
$
1,713
|
Corporate
|
71
|
66
|
|
71
|
66
|
|
71
|
66
|
|
|
$
1,711
|
$
1,646
|
|
$
1,562
|
$
1,646
|
|
$
1,711
|
$
1,779
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 in 2018 and 2019 occurred as of January 1,
2018.
|
Saga
Communications, Inc.
|
Selected
Supplemental Financial Data
|
March 31,
2019
|
(amounts in 000's
except ratios)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
Plus:
|
|
|
|
Trailing
|
|
|
12 Months
Ended
|
|
3 Months
Ended
|
|
3 Months
Ended
|
|
Plus:
|
|
12 Months
Ended
|
|
|
December
31,
|
|
March
31,
|
|
March
31,
|
|
Proforma
|
|
March
31,
|
|
|
2018
|
|
2018
|
|
2019
|
|
Acquisitions(2)
|
|
2019
|
Trailing 12 Month
Consolidated Earnings Before Interest,
|
|
|
|
|
|
|
|
|
|
Taxes,
Depreciation and Amortization ("EBITDA") (1)
|
|
|
|
|
|
|
|
|
|
Net income
|
$
13,690
|
|
$
1,529
|
|
$
1,370
|
|
$
476
|
|
$
14,007
|
Exclusions:
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on sale
of assets
|
(61)
|
|
251
|
|
(3)
|
|
-
|
|
(315)
|
|
Gain (loss) on
insurance proceeds
|
23
|
|
-
|
|
-
|
|
-
|
|
23
|
|
Interest
income
|
631
|
|
89
|
|
163
|
|
-
|
|
705
|
|
Other
|
(107)
|
|
(23)
|
|
82
|
|
-
|
|
(2)
|
Total
exclusions
|
486
|
|
317
|
|
242
|
|
-
|
|
411
|
Consolidated adjusted
net income (1)
|
13,204
|
|
1,212
|
|
1,128
|
|
476
|
|
13,596
|
Plus: Interest
expense
|
946
|
|
219
|
|
208
|
|
-
|
|
935
|
|
Income tax
expense
|
5,700
|
|
660
|
|
550
|
|
205
|
|
5,795
|
|
Depreciation &
amortization expense
|
6,786
|
|
1,646
|
|
1,711
|
|
399
|
|
7,250
|
|
Non-cash stock based
compensation expense
|
2,201
|
|
551
|
|
559
|
|
-
|
|
2,209
|
Trailing twelve month
consolidated EBITDA (1)
|
$
28,837
|
|
$
4,288
|
|
$
4,156
|
|
$
1,080
|
|
$
29,785
|
|
|
|
|
|
|
|
|
|
|
|
Total long-term debt,
including current maturities
|
|
|
|
|
|
|
|
|
$
15,000
|
Divided by trailing
twelve month consolidated EBITDA (1)
|
|
|
|
|
|
|
|
|
29,785
|
Leverage
ratio
|
|
|
|
|
|
|
|
|
0.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
As defined in the
Company's credit facility.
|
|
|
|
|
|
|
|
|
|
(2)
|
Trailing 12 Month
Adjustment
|
|
|
|
|
|
|
|
|
|
|
Saga
Communications, Inc.
|
|
Selected Financial
Data Non-GAAP Disclosures
|
|
For the Three
Months Ended
|
|
March 31, 2019 and
2018
|
|
(amounts in
000's)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Actual 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,
|
|
|
|
2019
|
|
Period
|
|
2019
|
|
2018
|
|
Period
|
|
2018
|
|
Operating
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating
revenue
|
$
27,816
|
|
$
(986)
|
|
$
26,830
|
|
$
28,009
|
|
$
-
|
|
$
28,009
|
|
Station operating
expense
|
23,163
|
|
(877)
|
|
22,286
|
|
23,397
|
|
-
|
|
23,397
|
|
Corporate general and
administrative
|
2,685
|
|
-
|
|
2,685
|
|
2,544
|
|
-
|
|
2,544
|
|
Other operating
expense (income), net
|
3
|
|
-
|
|
3
|
|
(251)
|
|
-
|
|
(251)
|
|
Operating
income
|
$
1,965
|
|
$
(109)
|
|
$
1,856
|
|
$
2,319
|
|
$
-
|
|
$
2,319
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
$
1,711
|
|
$
(149)
|
|
$
1,562
|
|
$
1,646
|
|
$
-
|
|
$
1,646
|
|
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SOURCE Saga Communications, Inc.