Saga Communications, Inc. Reports 1st Quarter 2023 Results
May 03 2023 - 9:00AM
Saga Communications, Inc. (Nasdaq - SGA) (the “Company” or “Saga”)
today reported that net revenue increased 1.3% to $25.3 million for
the quarter ended March 31, 2023 compared to $25.0
million for the same period last year. Station operating expense
increased $1.1 million for the quarter to $21.7 million compared to
the same period last year. A significant part of the increase in
station operating expense for the quarter was due to a $272
thousand increase in our self-insured health care costs and a $446
thousand increase in employee compensation including payroll taxes
at the station level. After a number of years of holding the
Company’s compensation expenses flat, we decided that adjustments
in our employee compensation were warranted in consideration of the
economic times and inflationary environment. For the quarter,
station operating income decreased $770 thousand to $4.8 million,
and operating income was $905 thousand compared to $1.7 million for
the same quarter last year. Free cash flow was $1.1 million for the
quarter compared to $1.9 million for the same period last year.
Capital expenditures were $1.4 million for the quarter compared to
$923 thousand for the same period last year. We had net income of
$920 thousand for the quarter compared to net income of $1.2
million for the first quarter last year. Diluted earnings per share
were $0.15 in the first quarter of 2023.
The Company paid a quarterly dividend of $0.25
per share on April 7, 2023. The aggregate amount of the quarterly
dividend was approximately $1.5 million. To date Saga has paid over
$108 million in dividends to shareholders since the first special
dividend was paid in 2012. The Company intends to declare regular
quarterly cash dividends, special dividends, variable dividends and
stock buybacks in the future.
The Company’s balance sheet reflects $37.5
million in cash and short-term investments as of
March 31, 2023 and $35.0 million as of May 1, 2023. The
Company expects to spend approximately $5.0 – $5.5 million for
capital expenditures during 2023.
Saga’s 2023 First Quarter conference call will
be held on Wednesday, May 3, 2023 at 11:00 a.m. The dial-in number
for the call is (973) 528-0008. Enter conference code 465239. 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 3, 2023 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.
The attached Selected Supplemental Financial
Data tables disclose the Company’s trailing twelve-month
consolidated EBITDA and a reconciliation of operating income to
station operating income.
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, 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 Consolidated Financial Data
and 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,” “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 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, 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 Months
EndedMarch 31, 2023 and
2022(amounts in 000’s except per share
data)(Unaudited) |
|
|
Three Months Ended |
|
|
March 31, |
|
|
2023 |
|
2022 |
Operating
Results |
|
|
|
|
|
|
Net operating revenue |
|
$ |
25,304 |
|
|
$ |
24,967 |
|
Station operating expense |
|
|
21,703 |
|
|
|
20,568 |
|
Corporate general and
administrative |
|
|
2,616 |
|
|
|
2,694 |
|
Other operating (income)
expense, net |
|
|
80 |
|
|
|
(5 |
) |
Operating income |
|
|
905 |
|
|
|
1,710 |
|
Interest expense |
|
|
43 |
|
|
|
32 |
|
Interest income |
|
|
(289 |
) |
|
|
(4 |
) |
Other income, net |
|
|
(119 |
) |
|
|
(2 |
) |
Income before income tax
expense |
|
|
1,270 |
|
|
|
1,684 |
|
Income tax expense |
|
|
350 |
|
|
|
480 |
|
Net income |
|
$ |
920 |
|
|
$ |
1,204 |
|
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
|
Basic |
|
$ |
0.15 |
|
|
$ |
0.20 |
|
Diluted |
|
$ |
0.15 |
|
|
$ |
0.20 |
|
|
|
|
|
|
|
|
Weighted average common
shares |
|
|
6,028 |
|
|
|
5,948 |
|
Weighted average common and
common equivalent shares |
|
|
6,028 |
|
|
|
5,948 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow |
|
|
|
|
|
|
Net income |
|
$ |
920 |
|
|
$ |
1,204 |
|
Plus: Depreciation and
amortization: |
|
|
|
|
|
|
Radio Stations |
|
|
1,197 |
|
|
|
1,169 |
|
Corporate |
|
|
40 |
|
|
|
62 |
|
Deferred tax provision |
|
|
70 |
|
|
|
80 |
|
Non-cash compensation |
|
|
245 |
|
|
|
339 |
|
Other operating (income) expense, net |
|
|
80 |
|
|
|
(5 |
) |
Other income, net |
|
|
(119 |
) |
|
|
(2 |
) |
Less: Capital
expenditures |
|
|
(1,362 |
) |
|
|
(923 |
) |
Free cash flow |
|
$ |
1,071 |
|
|
$ |
1,924 |
|
|
|
March 31, |
|
|
2023 |
|
2022 |
Balance Sheet Data |
|
|
|
|
|
|
Working capital |
|
$ |
38,334 |
|
$ |
56,405 |
Net fixed assets |
|
$ |
53,313 |
|
$ |
53,042 |
Net intangible assets and other assets |
|
$ |
119,435 |
|
$ |
119,799 |
Total assets |
|
$ |
228,539 |
|
$ |
245,075 |
Long-term debt |
|
$ |
— |
|
$ |
— |
Stockholders' equity |
|
$ |
178,419 |
|
$ |
197,742 |
Saga Communications, Inc.Selected
Supplemental Financial DataMarch 31,
2023(amounts in
000's)(Unaudited) |
|
|
|
|
|
Less: |
|
Plus: |
|
Trailing |
|
|
|
12 Months Ended |
|
3 Months Ended |
|
3 Months Ended |
|
12 Months Ended |
|
|
|
December 31, |
|
March 31, |
|
March 31, |
|
March 31, |
|
|
|
2022 |
|
2022 |
|
2023 |
|
2023 |
|
Trailing 12 Month
Consolidated Earnings Before Interest, Taxes, Depreciation and
Amortization ("EBITDA") (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
9,202 |
|
$ |
1,204 |
|
$ |
920 |
|
|
$ |
8,918 |
|
|
Exclusions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on sale of assets, net |
|
|
14 |
|
|
5 |
|
|
(80 |
) |
|
|
(71 |
) |
|
Gain on insurance proceeds |
|
|
534 |
|
|
— |
|
|
— |
|
|
|
534 |
|
|
Other income, net |
|
|
482 |
|
|
15 |
|
|
456 |
|
|
|
923 |
|
|
Total exclusions |
|
|
1,030 |
|
|
20 |
|
|
376 |
|
|
|
1,386 |
|
|
Consolidated adjusted net
income (1) |
|
|
8,172 |
|
|
1,184 |
|
|
544 |
|
|
|
7,532 |
|
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
130 |
|
|
32 |
|
|
43 |
|
|
|
141 |
|
|
Income tax expense |
|
|
4,800 |
|
|
480 |
|
|
350 |
|
|
|
4,670 |
|
|
Depreciation & amortization expense |
|
|
5,171 |
|
|
1,231 |
|
|
1,237 |
|
|
|
5,177 |
|
|
Non-cash compensation |
|
|
1,858 |
|
|
339 |
|
|
245 |
|
|
|
1,764 |
|
|
Trailing twelve month
consolidated EBITDA (1) |
|
$ |
20,131 |
|
$ |
3,266 |
|
$ |
2,419 |
|
|
$ |
19,284 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) As defined in the Company's credit
facility.
Saga Communications, Inc.Selected
Supplemental Financial DataFor the Three Months
EndedMarch 31, 2023 and
2022(amounts in
000’s)(Unaudited) |
|
|
Three Months Ended |
|
|
March 31, |
|
|
2023 |
|
2022 |
Operating income to
station operating income reconciliation: |
|
|
|
|
|
|
Operating income |
|
$ |
905 |
|
$ |
1,710 |
|
Plus: |
|
|
|
|
|
|
Corporate general and administrative |
|
|
2,616 |
|
|
2,694 |
|
Other operating (income) expense, net |
|
|
80 |
|
|
(5 |
) |
Station depreciation and amortization |
|
|
1,197 |
|
|
1,169 |
|
Station operating
income |
|
$ |
4,798 |
|
$ |
5,568 |
|
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