Saga Communications, Inc. Declares a Special Cash Dividend of $2.00 per Share
December 07 2023 - 4:55PM
Saga Communications, Inc. (Nasdaq - SGA) (the “Company”,
“Saga” or “our”) today announced that its Board of Directors
(“Board”) declared a special cash dividend of $2.00 per share. The
dividend will be paid on January 12, 2024, to shareholders of
record on December 20, 2023. The aggregate amount of the payment to
be made in connection with the special dividend will be
approximately $12.5 million. The special cash dividend will be
funded by cash on the Company’s balance sheet and is in line with
the Board’s goal of reducing our ongoing cash and short-term
investment balances to approximately $25 million prior to future
cash flows being recognized. The Board continues to have
discussions relative to the right level of cash to maintain on our
balance sheet and this may change based on global, national, and
local economic conditions, changes in the radio industry, and the
potential for strategic acquisitions.
The Board will continue to consider issuing a
variable dividend upon release of the Company’s 2023 fourth quarter
earnings release based on the adoption of the previously announced
variable dividend policy which is based on the company’s available
cash and is aligned with the goals of maintaining a strong balance
sheet, increasing cash returns to shareholders, and continuing to
grow the Company through strategic acquisitions.
Including this dividend, the Company will have
paid over $125.3 million in dividends to shareholders since the
first special dividend was paid in 2012.
The Company currently intends to declare regular
quarterly cash dividends as well as variable dividends in
accordance with the terms of its variable dividend policy, as
mentioned above. The Company may also declare special dividends and
stock buybacks in future periods. The declaration and payment of
any future dividend, whether fixed, special, or based on the
variable policy, or the implementation of any stock buyback program
will remain at the full discretion of the Board and will depend on
the Company’s financial results, cash requirements, future
expectations, and other pertinent factors.
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, 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.
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.
Contact: Samuel D. Bush (313)
886-7070
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