Saga Communications, Inc. Reports 1st Quarter 2024 Results
May 09 2024 - 9:00AM
Saga Communications, Inc. (Nasdaq - SGA) (the “Company” or “Saga”)
today reported that net revenue decreased 2.5% to $24.7 million for
the quarter ended March 31, 2024 compared to $25.3
million for the same period last year. Station operating expense
increased 5.9% for the quarter to $23.0 million compared to the
same period last year. For the quarter, the operating loss was $2.4
million compared to operating income of $905 thousand for the same
period last year and station operating income (a non-GAAP financial
measure) decreased 40.9% to $2.8 million. The operating loss for
the quarter included a $971 thousand other operating expense which
was a non-cash write-off on the sale and abandonment of
non-productive broadcast assets/licenses during the quarter.
Capital expenditures were $1.1 million for the quarter compared to
$1.4 million for the same period last year. We had a net loss of
$1.6 million for the quarter compared to net income of $920
thousand for the first quarter last year. Diluted loss per share
was $0.25 in the first quarter of 2024.
The Company paid a quarterly dividend of $0.25
per share on March 8, 2024. The aggregate amount of the quarterly
dividend was approximately $1.6 million. The Company also paid a
variable dividend of $0.60 per share on April 5, 2024. The
aggregate amount of the variable dividend was approximately $3.8
million. To date Saga has paid over $130 million in total dividends
to shareholders since the first special dividend was paid in 2012.
The Company intends to pay regular quarterly cash dividends in the
future. Consistent with its strategic objective of both maintaining
a strong balance sheet and with returning value to our
shareholders, the Board of Directors will also continue to consider
declaring special cash dividends, variable dividends and stock
buybacks in the future.
The Company’s balance sheet reflects $28.8
million in cash and short-term investments as of
March 31, 2024 and $23.7 million as of May 6, 2024. The
Company expects to spend approximately $5.0 – $5.5 million for
capital expenditures during 2024.
Saga’s 2024 First Quarter conference call will
be held on Thursday, May 9, 2024 at 11:00 a.m. The dial-in number
for the call is (973) 528-0008. Enter conference code 690103. A
recording and 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 please
email the inquiry by 10:00 a.m. on May 9, 2024 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 directions will be discussed during the call.
Saga utilizes certain financial measures that
are not calculated in accordance with generally accepted accounting
principles (GAAP) to assess its financial performance. The attached
Selected Supplemental Financial Data tables disclose the Company’s
reconciliation of non-GAAP measures: GAAP operating income to
station operating income, and GAAP net income to trailing
twelve-month consolidated EBITDA as well as other financial data.
Such non-GAAP measures include same station financial information,
station operating income, 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 the
non-GAAP financial measures to the most directly comparable GAAP
measure are attached in the Selected Supplemental Financial Data
tables.
This press release contains certain
forward-looking statements within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995 that are based upon
current expectations and involve certain risks and uncertainties.
Words such as “will,” “may,” “believes,” “intends,” “expects,”
“anticipates,” “guidance,” and similar expressions are intended to
identify forward-looking statements. The material risks facing our
business are described in the reports Saga periodically files with
the U.S. Securities and Exchange Commission, including, in
particular, Item 1A of our Annual Report on Form 10-K. Readers
should note that forward-looking statements may be impacted by
several factors, including global, national, and local economic
changes and changes in the radio broadcast industry in general as
well as Saga’s actual performance. Actual results may vary
materially from those described herein and Saga undertakes no
obligation to update any information contained herein that
constitutes a forward-looking statement.
Saga is a media company whose business is
devoted to acquiring, developing and operating broadcast properties
with a growing focus on opportunities complimentary to our core
radio business including digital, e-commerce and non-traditional
revenue initiatives. Saga owns or operates broadcast properties in
27 markets, including 79 FM, 31 AM radio stations and 78 metro
signals. For additional information, contact us at (313) 886-7070
or visit our website at www.sagacom.com.
Contact:Samuel D.
Bush(313) 886-7070
Saga Communications, Inc.Selected
Consolidated Financial DataFor the Three Months
EndedMarch 31, 2024 and
2023(amounts in 000’s except per share
data)(Unaudited) |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
|
2024 |
|
|
2023 |
|
|
Operating
Results |
|
|
|
|
|
|
|
Net operating revenue |
|
$ |
24,664 |
|
|
$ |
25,304 |
|
|
Station operating expense |
|
|
22,981 |
|
|
|
21,703 |
|
|
Corporate general and
administrative |
|
|
3,129 |
|
|
|
2,616 |
|
|
Other operating expense,
net |
|
|
971 |
|
|
|
80 |
|
|
Operating (loss) income |
|
|
(2,417 |
) |
|
|
905 |
|
|
Interest expense |
|
|
43 |
|
|
|
43 |
|
|
Interest income |
|
|
(303 |
) |
|
|
(289 |
) |
|
Other income, net |
|
|
— |
|
|
|
(119 |
) |
|
Income (loss) before income
tax expense |
|
|
(2,157 |
) |
|
|
1,270 |
|
|
Income tax provision
(benefit) |
|
|
|
|
|
|
|
Current |
|
|
(515 |
) |
|
|
280 |
|
|
Deferred (benefit) |
|
|
(65 |
) |
|
|
70 |
|
|
|
|
|
(580 |
) |
|
|
350 |
|
|
Net (loss) income |
|
$ |
(1,577 |
) |
|
$ |
920 |
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share: |
|
|
|
|
|
|
|
Basic |
|
$ |
(0.25 |
) |
|
$ |
0.15 |
|
|
Diluted |
|
$ |
(0.25 |
) |
|
$ |
0.15 |
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares |
|
|
6,063 |
|
|
|
6,028 |
|
|
Weighted average common and
common equivalent shares |
|
|
6,063 |
|
|
|
6,028 |
|
|
|
|
|
|
|
|
|
|
March 31, |
|
|
|
|
|
|
|
|
2024 |
|
2023 |
Balance Sheet
Data |
|
|
|
|
|
|
|
|
|
|
|
|
Working capital |
|
|
|
|
|
|
|
$ |
27,216 |
|
$ |
38,334 |
Net fixed assets |
|
|
|
|
|
|
|
$ |
51,230 |
|
$ |
53,313 |
Net intangible assets and other assets |
|
|
|
|
|
|
|
$ |
119,243 |
|
$ |
119,435 |
Total assets |
|
|
|
|
|
|
|
$ |
218,046 |
|
$ |
228,539 |
Long-term debt |
|
|
|
|
|
|
|
$ |
— |
|
$ |
— |
Stockholders' equity |
|
|
|
|
|
|
|
$ |
164,372 |
|
$ |
178,419 |
Saga Communications, Inc.Selected
Consolidated Financial DataFor the Three Months
EndedMarch 31, 2024 and
2023(amounts in 000’s except per share
data)(Unaudited) |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
|
2024 |
|
|
2023 |
|
|
|
|
(Unaudited) |
|
|
|
(In thousands) |
|
Statement of Cash
Flows |
|
|
|
|
|
|
|
Cash flows from
operating activities: |
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
(1,577 |
) |
|
$ |
920 |
|
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
1,198 |
|
|
|
1,237 |
|
|
Deferred income tax expense (benefit) |
|
|
(65 |
) |
|
|
70 |
|
|
Amortization of deferred costs |
|
|
9 |
|
|
|
9 |
|
|
Compensation expense related to restricted stock awards |
|
|
453 |
|
|
|
245 |
|
|
Loss on sale of assets, net |
|
|
971 |
|
|
|
80 |
|
|
Other (gain), net |
|
|
- |
|
|
|
(119 |
) |
|
Barter (revenue) expense, net |
|
|
13 |
|
|
|
(48 |
) |
|
Deferred and other compensation |
|
|
(24 |
) |
|
|
(245 |
) |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
Decrease in receivables and prepaid expenses |
|
|
2,135 |
|
|
|
2,367 |
|
|
Increase in accounts payable, accrued expenses, and other
liabilities |
|
|
690 |
|
|
|
319 |
|
|
Total adjustments |
|
|
5,380 |
|
|
|
3,915 |
|
|
Net cash provided by operating
activities |
|
|
3,803 |
|
|
|
4,835 |
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
Purchase of short-term investments |
|
|
(4,297 |
) |
|
|
(2,067 |
) |
|
Redemption of short-term investments |
|
|
6,432 |
|
|
|
2,067 |
|
|
Acquisition of property and equipment (Capital Expenditures) |
|
|
(1,050 |
) |
|
|
(1,362 |
) |
|
Proceeds from sale and disposal of assets |
|
|
21 |
|
|
|
616 |
|
|
Other investing activities |
|
|
(246 |
) |
|
|
117 |
|
|
Net cash provided by (used in)
investing activities |
|
|
860 |
|
|
|
(629 |
) |
|
Cash flows from
financing activities: |
|
|
|
|
|
|
|
Cash dividends paid |
|
|
(14,068 |
) |
|
|
(13,754 |
) |
|
Net cash used in financing
activities |
|
|
(14,068 |
) |
|
|
(13,754 |
) |
|
Net decrease in cash and cash
equivalents |
|
|
(9,405 |
) |
|
|
(9,548 |
) |
|
Cash and cash equivalents,
beginning of period |
|
|
29,582 |
|
|
|
36,802 |
|
|
Cash and cash equivalents, end
of period |
|
$ |
20,177 |
|
|
$ |
27,254 |
|
|
|
|
|
|
|
|
|
|
|
|
Saga Communications, Inc.Selected
Supplemental Financial DataFor the Three Months
EndedMarch 31, 2024 and
2023(amounts in
000’s)(Unaudited) |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
|
2024 |
|
|
2023 |
|
|
Reconciliation of GAAP
operating income to station operating income (a non-GAAP financial
measure) |
|
|
|
|
|
|
|
Operating (loss) income |
|
$ |
(2,417 |
) |
|
$ |
905 |
|
|
Plus: |
|
|
|
|
|
|
|
Corporate general and administrative |
|
|
3,129 |
|
|
|
2,616 |
|
|
Other operating expense, net |
|
|
971 |
|
|
|
80 |
|
|
Station depreciation and amortization |
|
|
1,152 |
|
|
|
1,197 |
|
|
Station operating
income |
|
$ |
2,835 |
|
|
$ |
4,798 |
|
|
|
|
|
|
|
|
|
|
Other financial
data |
|
|
|
|
|
|
|
Depreciation and
amortization: |
|
|
|
|
|
|
|
Radio Stations |
|
$ |
1,152 |
|
|
$ |
1,197 |
|
|
Corporate |
|
$ |
46 |
|
|
$ |
40 |
|
|
Compensation expense related
to restricted stock awards |
|
$ |
453 |
|
(1) |
$ |
245 |
|
(1) |
Other operating expense, net
(2) |
|
$ |
971 |
|
|
$ |
80 |
|
|
Other income, net (2) |
|
$ |
- |
|
|
$ |
(119 |
) |
|
Deferred income tax expense
(benefit) (2) |
|
$ |
(65 |
) |
|
$ |
70 |
|
|
Acquisition of property and
equipment (Capital Expenditures) |
|
$ |
1,050 |
|
(1) |
$ |
1,362 |
|
(1) |
|
|
|
|
|
|
|
|
(1) As presented in the Statement of Cash Flows
in the Selected Consolidated Financial Data
tables(2) As presented in the Operating Results in
the Selected Consolidated Financial Data tables
Saga Communications, Inc.Selected
Supplemental Financial DataMarch 31,
2024(amounts in
000's)(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
12 Months EndedDecember 31,2023 |
|
Less:3 Months EndedMarch 31, 2023 |
|
Plus:3 Months EndedMarch 31,2024 |
|
Trailing12 Months EndedMarch 31,2024 |
Reconciliation of GAAP
Net Income to trailing 12 Month Consolidated Earnings Before
Interest, Taxes, Depreciation and Amortization ("EBITDA") (a
non-GAAP financial measure) (1) |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
9,500 |
|
|
$ |
920 |
|
|
$ |
(1,577 |
) |
|
$ |
7,003 |
|
Exclusions: |
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on sale of assets, net |
|
|
(120 |
) |
|
|
(80 |
) |
|
|
(971 |
) |
|
|
(1,011 |
) |
Other income, net |
|
|
1,510 |
|
|
|
456 |
|
|
|
290 |
|
|
|
1,344 |
|
Total exclusions |
|
|
1,390 |
|
|
|
376 |
|
|
|
(681 |
) |
|
|
333 |
|
Consolidated adjusted net
income (1) |
|
|
8,110 |
|
|
|
544 |
|
|
|
(896 |
) |
|
|
6,670 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
173 |
|
|
|
43 |
|
|
|
43 |
|
|
|
173 |
|
Income tax provision (benefit) |
|
|
3,375 |
|
|
|
350 |
|
|
|
(580 |
) |
|
|
2,445 |
|
Depreciation & amortization expense |
|
|
5,055 |
|
|
|
1,237 |
|
|
|
1,198 |
|
|
|
5,016 |
|
Non-cash compensation |
|
|
1,116 |
|
|
|
245 |
|
|
|
453 |
|
|
|
1,324 |
|
Trailing twelve month
consolidated EBITDA (1) |
|
$ |
17,829 |
|
|
$ |
2,419 |
|
|
$ |
218 |
|
|
$ |
15,628 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) As defined in the Company's credit
facility.
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