Saga Communications, Inc. Announces Variable Dividend Declaration and Reports 4th Quarter and Year End 2023 Results
March 07 2024 - 9:00AM
Saga Communications, Inc. (Nasdaq - SGA) (the “Company,” “we,”
“us,” “our” or “Saga”) announced today that its Board of Directors
(“Board”) declared a variable dividend of $0.60 per share in
conjunction with the Company’s variable dividend policy. The
dividend will be paid on April 5, 2024 with a record date of March
18, 2024. The aggregate amount of the payment will be approximately
$3.8 million and the variable dividend will be funded by cash on
the Company’s balance sheet.
The Company also reported that net revenue
decreased 3.3% to $29.1 million for the quarter ended
December 31, 2023 compared to $30.1 million for the same
period last year. Political impacted the quarter’s performance as
for the quarter the Company had $407 thousand in gross political
revenue this year compared to $1.9 million for the same period last
year. Without political revenue the Company’s gross revenue for the
quarter would have increased approximately 1% compared to last
year. Station operating expense increased 1.9% for the quarter to
$23.3 million compared to the same period last year. For the
quarter, operating income was $2.8 million compared to $4.9 million
for the same quarter last year and station operating income (a
non-GAAP financial measure) decreased 17.2% to $7.1 million.
Capital expenditures were $1.0 million for the quarter compared to
$1.3 million for the same period last year. We had net income of
$2.5 million for the quarter compared to net income of $4.3 million
for the fourth quarter last year. Diluted earnings per share were
$0.37 for the fourth quarter of 2023.
Net revenue decreased 1.8% to $112.8 million for
the twelve-month period ended December 31, 2023 compared
to $114.9 million for the same period last year. Political impacted
the year’s performance as for the year the Company had $944
thousand in gross political revenue this year compared to $3.6
million for the same period last year. Without political revenue
the Company’s gross revenue for the year would have been
approximately flat compared to last year. Station operating expense
increased 3.0% for the twelve-month period to $90.2 million
compared to the same period last year. For the twelve-month period,
operating income was $11.5 million compared to $13.1 million for
the same period last year and station operating income (a non-GAAP
financial measure) decreased 15.0% to $27.4 million. Capital
expenditures for the twelve months were $4.4 million compared to
$6.0 million for the same period last year. Net income was $9.5
million for the twelve-month period compared to $9.2 million for
the same period last year. Diluted earnings per share were $1.52
for the twelve months of 2023.
The Company will pay a regular quarterly cash
dividend of $0.25 per share on March 8, 2024. The aggregate amount
of the quarterly dividend will be approximately $1.6 million. The
Company paid a special cash dividend of $2.00 per share on January
12, 2024 and a regular quarterly cash dividend of $0.25 per share
on December 15, 2023. Including the variable dividend declared in
this press release the Company will have paid over $130 million in
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 our strategic objectives
of both maintaining a strong balance sheet and 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 $40.2
million in cash and short-term investments as of
December 31, 2023 and $30.4 million as of March 4, 2024.
The Company expects to spend approximately $5.0 to $5.5 million for
capital expenditures during 2024. As previously announced the
Company has entered into an agreement to purchase stations serving
the Lafayette, IN radio market for $5.3 million. This acquisition
is expected to close during the second quarter of 2024.
Saga’s 2023 Fourth Quarter and Year-End
conference call will be held on Thursday, March 7, 2024 at 11:00
a.m. The dial-in number for the call is (973) 528-0008. Enter
conference code 960736. 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 March 7, 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, 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, 33 AM radio stations and 80 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 and
Twelve Months EndedDecember 31, 2023 and
2022(amounts in 000’s except per share
data)(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
December 31, |
|
December 31, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Operating Results |
|
|
|
|
|
|
|
|
|
|
|
|
Net operating revenue |
|
$ |
29,145 |
|
|
$ |
30,125 |
|
|
$ |
112,773 |
|
|
$ |
114,893 |
|
Station operating expense |
|
|
23,329 |
|
|
|
22,888 |
|
|
|
90,199 |
|
|
|
87,537 |
|
Corporate general and administrative |
|
|
3,026 |
|
|
|
2,330 |
|
|
|
10,966 |
|
|
|
14,300 |
|
Other operating (income) expense, net |
|
|
(5 |
) |
|
|
(17 |
) |
|
|
120 |
|
|
|
(14 |
) |
Operating income |
|
|
2,795 |
|
|
|
4,924 |
|
|
|
11,488 |
|
|
|
13,070 |
|
Interest expense |
|
|
43 |
|
|
|
34 |
|
|
|
173 |
|
|
|
130 |
|
Interest income |
|
|
(414 |
) |
|
|
(223 |
) |
|
|
(1,441 |
) |
|
|
(410 |
) |
Other income, net |
|
|
— |
|
|
|
(616 |
) |
|
|
(119 |
) |
|
|
(652 |
) |
Income before income tax expense |
|
|
3,166 |
|
|
|
5,729 |
|
|
|
12,875 |
|
|
|
14,002 |
|
Income tax provision (benefit) |
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
|
970 |
|
|
|
1,475 |
|
|
|
2,990 |
|
|
|
3,865 |
|
Deferred (benefit) |
|
|
(305 |
) |
|
|
(25 |
) |
|
|
385 |
|
|
|
935 |
|
|
|
|
665 |
|
|
|
1,450 |
|
|
|
3,375 |
|
|
|
4,800 |
|
Net
income |
|
$ |
2,501 |
|
|
$ |
4,279 |
|
|
$ |
9,500 |
|
|
$ |
9,202 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.37 |
|
|
$ |
0.70 |
|
|
$ |
1.52 |
|
|
$ |
1.52 |
|
Diluted |
|
$ |
0.37 |
|
|
$ |
0.70 |
|
|
$ |
1.52 |
|
|
$ |
1.52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares |
|
|
6,030 |
|
|
|
6,013 |
|
|
|
6,045 |
|
|
|
5,973 |
|
Weighted average common and common equivalent shares |
|
|
6,030 |
|
|
|
6,013 |
|
|
|
6,045 |
|
|
|
5,973 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
|
|
|
|
|
|
2023 |
|
2022 |
Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|
|
|
Working capital |
|
|
|
|
|
|
|
$ |
32,615 |
|
$ |
38,482 |
Net fixed assets |
|
|
|
|
|
|
|
$ |
51,405 |
|
$ |
53,198 |
Net intangible assets and other assets |
|
|
|
|
|
|
|
$ |
120,164 |
|
$ |
119,696 |
Total assets |
|
|
|
|
|
|
|
$ |
232,213 |
|
$ |
240,753 |
Long-term debt |
|
|
|
|
|
|
|
$ |
— |
|
$ |
— |
Stockholders' equity |
|
|
|
|
|
|
|
$ |
170,549 |
|
$ |
178,529 |
Saga Communications, Inc.Selected
Consolidated Financial DataFor the Twelve Months
EndedDecember 31, 2023 and
2022(amounts in 000’s except per share
data)(Unaudited) |
|
|
|
|
|
|
|
|
|
Years Ended December 31, |
|
|
2023 |
|
2022 |
|
|
|
(In thousands) |
|
|
|
|
|
|
|
Statement of Cash Flows |
|
|
|
|
|
|
Cash flows from operating activities: |
|
|
|
|
|
|
Net income |
|
$ |
9,500 |
|
|
$ |
9,202 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
5,055 |
|
|
|
5,171 |
|
Deferred income tax expense |
|
|
385 |
|
|
|
935 |
|
Amortization of deferred costs |
|
|
36 |
|
|
|
10 |
|
Compensation expense related to restricted stock awards |
|
|
1,116 |
|
|
|
1,858 |
|
Loss on sale of assets, net |
|
|
120 |
|
|
|
(14 |
) |
(Gain) on insurance claims |
|
|
— |
|
|
|
(534 |
) |
Other (gain), net |
|
|
(119 |
) |
|
|
(118 |
) |
Barter (revenue) expense, net |
|
|
50 |
|
|
|
46 |
|
Deferred and other compensation |
|
|
(100 |
) |
|
|
1,425 |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
(Increase) decrease in receivables and prepaid expenses |
|
|
(1,303 |
) |
|
|
(1,135 |
) |
Increase (decrease) in accounts payable, accrued expenses, and
other liabilities |
|
|
639 |
|
|
|
279 |
|
Total adjustments |
|
|
5,879 |
|
|
|
7,923 |
|
Net
cash provided by operating activities |
|
|
15,379 |
|
|
|
17,125 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
Purchase of short-term investments |
|
|
(20,728 |
) |
|
|
(18,000 |
) |
Redemption of short-term investments |
|
|
20,723 |
|
|
|
8,000 |
|
Acquisition of property and equipment (Capital Expenditures) |
|
|
(4,356 |
) |
|
|
(5,994 |
) |
Acquisition of broadcast properties |
|
|
— |
|
|
|
(57 |
) |
Proceeds from sale and disposal of assets |
|
|
1,747 |
|
|
|
411 |
|
Proceeds from insurance claims |
|
|
— |
|
|
|
534 |
|
Other investing activities |
|
|
117 |
|
|
|
116 |
|
Net
cash used in investing activities |
|
|
(2,497 |
) |
|
|
(14,990 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
Cash dividends paid |
|
|
(19,875 |
) |
|
|
(19,785 |
) |
Payments for debt issuance costs |
|
|
— |
|
|
|
(161 |
) |
Purchase of treasury shares |
|
|
(227 |
) |
|
|
(147 |
) |
Net
cash used in financing activities |
|
|
(20,102 |
) |
|
|
(20,093 |
) |
Net
decrease in cash and cash equivalents |
|
|
(7,220 |
) |
|
|
(17,958 |
) |
Cash and cash equivalents, beginning of period |
|
|
36,802 |
|
|
|
54,760 |
|
Cash and cash equivalents, end of period |
|
$ |
29,582 |
|
|
$ |
36,802 |
|
Saga Communications, Inc.Selected
Supplemental Financial DataFor the Three and
Twelve Months EndedDecember 31, 2023 and
2022(amounts in
000’s)(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
|
December 31, |
|
December 31, |
|
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Reconciliation of GAAP operating income to station
operating income (a non-GAAP financial measure) |
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
$ |
2,795 |
|
|
$ |
4,924 |
|
|
$ |
11,488 |
|
|
$ |
13,070 |
|
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
Corporate general and administrative |
|
|
3,026 |
|
|
|
2,330 |
|
|
|
10,966 |
|
|
|
14,300 |
|
|
Other operating (income) expense, net |
|
|
(5 |
) |
|
|
(17 |
) |
|
|
120 |
|
|
|
(14 |
) |
|
Station depreciation and amortization |
|
|
1,255 |
|
|
|
1,303 |
|
|
|
4,854 |
|
|
|
4,925 |
|
|
Station operating income |
|
$ |
7,071 |
|
|
$ |
8,540 |
|
|
$ |
27,428 |
|
|
$ |
32,281 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other financial data |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization: |
|
|
|
|
|
|
|
|
|
|
|
|
Radio Stations |
|
$ |
1,255 |
|
|
$ |
1,303 |
|
|
$ |
4,854 |
|
|
$ |
4,925 |
|
|
Corporate |
|
$ |
63 |
|
|
$ |
34 |
|
|
$ |
201 |
|
|
$ |
246 |
|
|
Compensation expense related to restricted stock awards |
|
$ |
373 |
|
|
$ |
132 |
|
|
$ |
1,116 |
|
(1) |
$ |
1,858 |
|
(1) |
Other operating (income) expense, net (2) |
|
$ |
(5 |
) |
|
$ |
(17 |
) |
|
$ |
120 |
|
|
$ |
(14 |
) |
|
Other income, net (2) |
|
$ |
- |
|
|
$ |
(616 |
) |
|
$ |
(119 |
) |
|
$ |
(652 |
) |
|
Deferred income tax expense (benefit) (2) |
|
$ |
(305 |
) |
|
$ |
(25 |
) |
|
$ |
385 |
|
|
$ |
935 |
|
|
Acquisition of property and equipment (Capital Expenditures) |
|
$ |
959 |
|
|
$ |
1,263 |
|
|
$ |
4,356 |
|
(1) |
$ |
5,994 |
|
(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 DataDecember 31, 2023 and
2022(amounts in
000's)(Unaudited) |
|
|
|
|
|
|
|
|
|
12 Months Ended |
|
|
December 31, |
|
|
2023 |
|
|
2022 |
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 |
|
$ |
9,500 |
|
|
$ |
9,202 |
Exclusions: |
|
|
|
|
|
|
Gain (loss) on sale of assets, net |
|
|
(120 |
) |
|
|
14 |
Gain on insurance proceeds |
|
|
— |
|
|
|
534 |
Other income, net |
|
|
1,510 |
|
|
|
482 |
Total exclusions |
|
|
1,390 |
|
|
|
1,030 |
Consolidated adjusted net income (1) |
|
|
8,110 |
|
|
|
8,172 |
Plus: |
|
|
|
|
|
|
Interest expense |
|
|
173 |
|
|
|
130 |
Income tax provision (benefit) |
|
|
3,375 |
|
|
|
4,800 |
Depreciation & amortization expense |
|
|
5,055 |
|
|
|
5,171 |
Non-cash compensation |
|
|
1,116 |
|
|
|
1,858 |
Trailing twelve month consolidated EBITDA (1) |
|
$ |
17,829 |
|
|
$ |
20,131 |
|
|
|
|
|
|
|
(1) As defined in the Company's credit facility.
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