Saga Communications, Inc. Reports 1st Quarter 2017 Results

Net Revenue of $31.4 Million and Declares Quarterly Cash Dividend of $0.30 per Share

News provided by

Saga Communications, Inc.

May 04, 2017, 09:00 ET

GROSSE POINTE FARMS, Mich., May 4, 2017 /PRNewswire/ -- Saga Communications, Inc. (NYSE MKT: SGA) today announced that its Board of Directors declared a quarterly cash dividend of $0.30 per share.  The dividend will be paid on June 9, 2017 to shareholders of record on May 22, 2017.  The aggregate amount of the payment to be made in connection with the quarterly dividend will be approximately $1.8 million.  The quarterly cash dividend will be funded by cash on the Company's balance sheet.

The Company also reported that primarily due to a reduction in political revenue of $1.3 million from the same period last year net revenue decreased 4.1% ($1.3 million) to $31.4 million for the quarter ended March 31, 2017.  Station operating expense increased 1.5% to $25.1 million (station operating expense includes depreciation and amortization attributable to the stations).  Operating Income decreased $1.9 million to $3.5 million.  Free cash flow for the quarter was $3.2 million.

Capital expenditures were $1.4 million in the first quarter compared to $1.0 million for the same period last year. The Company expects to spend approximately $5.0 million to $5.5 million for capital expenditures during 2017.

Saga's 2017 1st Quarter call will be on Thursday, May 4, 2017 at 11:00 a.m. EST.  The dial-in number for the call is (612) 288-0337.  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 4, 2017 to [email protected]. 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" and "same station" information by segment 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.  

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 26 markets, including 68 FM and 32 AM radio stations, 4 television stations and 5 low-power television stations. 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, 2017 and 2016

(amounts in 000's except per share data)

(Unaudited)








 Three Months Ended  



 March 31, 



2017

2016

Operating Results


Net operating revenue

$         31,410

$        32,745

Station operating expense

25,052

24,685

Corporate general and administrative

2,863

2,717

Other operating (income) expense, net

10

-

Operating income

3,485

5,343

Interest expense

217

189

Income before income tax expense

3,268

5,154

Income tax expense

1,330

2,130

Net income

$           1,938

$          3,024





Earnings Per Share



Basic

$             0.32

$           0.52

Diluted

$             0.32

$           0.52





Weighted average common shares

6,002

5,751

Weighted average common and common 



equivalent shares

6,014

5,759





Free Cash Flow


Net income 

$           1,938

$          3,024

Plus: Depreciation and amortization:



        Station

1,674

1,667

        Corporate

71

69

         Deferred tax provision

425

575

         Non-cash compensation

558

528

         Other operating (income) expense, net

10

-

Less: Capital expenditures

(1,439)

(1,010)

Free cash flow

$           3,237

$          4,853








 March 31, 



2017

2016

Balance Sheet Data



Working capital

$         39,451

$        23,906

Net fixed assets

$         56,319

$        57,924

Net intangible assets and other assets

$       110,731

$      110,795

Total assets

$       221,567

$      209,727

Long-term debt  

$         36,365

$        36,365

Stockholders' equity

$       135,983

$      125,162

Saga Communications, Inc.

Selected Supplemental Financial Data

For the Three Months Ended

March 31, 2017 and 2016

(amounts in 000's except per share data)

(Unaudited)











Actual

Same Station (1)



Three Months Ended

Three Months Ended



March 31,

March 31,



2017

2016

2017

2016

Consolidated






Net operating revenue

$      31,410

$    32,745

$      31,363

$      32,745

Station operating expense

25,052

24,685

24,996

24,685

Corporate general and administrative

2,863

2,717

2,863

2,717

Other operating (income) expense, net

10

-

10

-

Operating income

3,485

5,343

3,494

5,343

Interest expense

217

189




Income before income tax expense

3,268

5,154




Income tax expense

1,330

2,130




Net income 

$        1,938

$      3,024




Earnings per share:






  Basic

$          0.32

$        0.52




  Diluted

$          0.32

$        0.52















Actual

Same Station (1)



Three Months Ended

Three Months Ended



March 31,

March 31,



2017

2016

2017

2016

Radio Segment






Net operating revenue

$      26,155

$    27,464

$      26,108

$      27,464

Station operating expense

21,340

21,140

21,284

21,140

Other operating (income) expense, net

(21)

(3)

(21)

(3)

Operating income

$        4,836

$      6,327

$        4,845

$        6,327





















Actual

Same Station (1)



Three Months Ended

Three Months Ended



March 31,

March 31,



2017

2016

2017

2016

Television Segment






Net operating revenue

$        5,255

$      5,281

$        5,255

$        5,281

Station operating expense

3,712

3,545

3,712

3,545

Other operating (income) expense, net

31

3

31

3

Operating income

$        1,512

$      1,733

$        1,512

$        1,733





















Actual

Same Station (1)



Three Months Ended

Three Months Ended



March 31,

March 31,



2017

2016

2017

2016

Depreciation and amortization







by segment






Radio Segment

$        1,358

$      1,346

$        1,358

$        1,346

Television Segment

316

321

316

321

Corporate and Other

71

69

71

69



$        1,745

$      1,736

$        1,745

$        1,736










(1)

Same station includes only the results of stations we owned and operated for the entire comparable period.

Saga Communications, Inc.

Selected Supplemental Financial Data

March 31, 2017

(amounts in 000's except ratios)

(Unaudited)































Less:

Plus:

Trailing


12 Mos Ended

3 Mos Ended

3 Mos Ended

12 Mos Ended


December 31,

March 31,

March 31,

March 31,


2016

2016

2017

2017

Trailing 12 Month Consolidated Earnings Before Interest,






  Taxes, Depreciation and Amortization ("EBITDA") (1)






Net income

$                  18,186

$                  3,024

$                  1,938

$                  17,100

Exclusions:







Gain (loss) on sale of assets

1,393

-

(10)

1,383

Other

298

70

59

287

Total exclusions

1,691

70

49

1,670

Consolidated adjusted net income (1)

16,495

2,954

1,889

15,430

Plus:  Interest expense

776

189

217

804

Income tax expense

12,500

2,130

1,330

11,700

Depreciation & amortization expense

7,263

1,736

1,745

7,272

Amortization of television syndicated programming contracts

628

158

158

628

Non-cash stock based compensation expense

2,101

528

558

2,131

Less: Cash television programming payments

(625)

(158)

(158)

(625)

Trailing twelve month consolidated EBITDA (1)

$                  39,138

$                  7,537

$                  5,739

$                  37,340









Total long-term debt, including current maturities





$                  36,365

Divided by trailing twelve month consolidated EBITDA (1)





37,340

Consolidated Net Leverage Ratio (1)





0.97









(1)

As defined in the Company's credit facility.



Saga Communications, Inc.

Selected Financial Data Non-GAAP Disclosures

For the Three Months Ended

March 31, 2017 and 2016

(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,


2017

Period

2017

2016

Period

2016

Consolidated











Net operating revenue

$              31,410

$                   (47)

$              31,363

$              32,745

$                     -

$              32,745

Station operating expense

25,052

(56)

24,996

24,685

-

24,685

Corporate general and administrative

2,863

-

2,863

2,717

-

2,717

Other operating (income) expense, net

10

-

10

-

-

-

Operating income

$                3,485

$                      9

$                3,494

$                5,343

$                     -

$                5,343














Depreciation and amortization

$                1,745

$                     -

$                1,745

$                1,736

$                     -

$                1,736


















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,


2017

Period

2017

2016

Period

2016

Radio Segment











Net operating revenue

$              26,155

$                   (47)

$              26,108

$              27,464

$                     -

$              27,464

Station operating expense

21,340

(56)

21,284

21,140

-

21,140

Other operating (income) expense, net

(21)

-

(21)

(3)

-

(3)

Operating income

$                4,836

$                      9

$                4,845

$                6,327

$                     -

$                6,327














Depreciation and amortization

$                1,358

$                     -

$                1,358

$                1,346

$                     -

$                1,346


















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,


2017

Period

2017

2016

Period

2016

Television Segment











Net operating revenue

$                5,255

$                     -

$                5,255

$                5,281

$                     -

$                5,281

Station operating expense

3,712

-

3,712

3,545

-

3,545

Other operating (income) expense, net

31

-

31

3

-

3

Operating income

$                1,512

$                     -

$                1,512

$                1,733

$                     -

$                1,733














Depreciation and amortization

$                   316

$                     -

$                   316

$                   321

$                     -

$                   321

SOURCE Saga Communications, Inc.

Related Links

http://www.sagacom.com

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