Saga Communications, Inc. Reports 1st Quarter Results Net Income Increases 9.0%

GROSSE POINTE FARMS, Mich., May 7, 2013 /PRNewswire/ -- Saga Communications, Inc. (NYSE MKT SGA) today reported that net income for the period increased 9.0% to $3.0 million ($0.51 per fully diluted share) compared to net income of $2.7 million ($0.48 per fully diluted share) for the same period last year.  Net operating revenue for the quarter ended March 31, 2013 decreased 1.3% to $29.0 million from $29.3 million for the same period last year.  Operating income from continuing operations decreased 1.9% to $4.9 million compared to $5.0 million for the same period last year.  Station operating expense decreased 1.2% to $22.1 million (station operating expense includes depreciation and amortization attributable to the stations). 

Capital expenditures in the 1st quarter of 2013 and 2012 were $1.2 million.  The Company currently expects to spend approximately $5.0 million for capital expenditures during 2013. 

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 free cash flow, 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 of the non-GAAP financial measures to the most directly comparable GAAP measure are attached in the Selected Consolidated and Supplemental Financial Data tables.

Saga is a broadcasting company whose business is devoted to acquiring, developing and operating broadcast properties.  Saga owns or operates broadcast properties in 25 markets, including 61 FM and 30 AM radio stations, 3 state radio networks, 2 farm radio networks, 4 television stations and 4 low-power television stations. For additional information, contact us at (313) 886-7070 or visit our website at www.sagacommunications.com.

Saga's 1st Quarter 2013 conference call will be on Tuesday, May 7, 2013 at 2:00 p.m. EDT.  The dial-in number for all calls is (612) 332-0530.  A transcript of the call will be posted to the Company's website.  

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 1:00 p.m. EDT on May 7, 2013 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 will be discussed during the call.

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 Communications, Inc.

Selected Consolidated Financial Data

For The Three Months Ended

March 31, 2013 and 2012

(amounts in 000's except per share data)

(Unaudited)









 Three Months Ended  




 March 31, 




2013

2012

Operating Results




Net operating revenue


$28,957

$29,323

Station operating expense


22,088

22,360

Corporate general and administrative


1,948

1,949

Operating income from continuing operations


4,921

5,014

Interest expense


358

528

Other expense (income), net


25

(2)

Income from continuing operations before income tax


4,538

4,488

Income tax expense


1,812

1,785

Income from continuing operations, net of income taxes


2,726

2,703

Income from discontinued operations, net of income taxes


223

2

Net income


$2,949

$2,705

Basic earnings per share:





From continuing operations


$0.48

$0.48


From discontinued operations


0.04

-


Earnings per share


$0.52

$0.48

Diluted earnings per share:





From continuing operations


$0.47

$0.48


From discontinued operations


0.04

-


Earnings per share


$0.51

$0.48

Weighted average common shares


5,673

5,658

Weighted average common and common 





equivalent shares


5,738

5,678






Free Cash Flow




Net income 


$2,949

$2,705

Plus: Depreciation and amortization:





        Station


1,584

1,636


        Corporate


57

57


        Discontinued operations


-

97

         Deferred tax provision


615

610

         Non-cash compensation


16

57

         Gain on disposal of television station


(223)

-

         Other expense (income), net


25

(2)

Less: Capital expenditures


(1,177)

(1,189)

Free cash flow


$3,846

$3,971






Balance Sheet Data





Working capital


$33,873

$15,433


Net fixed assets


$57,981

$60,074


Net intangible assets and other assets


$95,715

$98,719


Total assets


$200,570

$186,913


Long-term debt


$58,828

$61,328


Stockholders' equity


$107,409

$95,657






 

Saga Communications, Inc.

Selected Supplemental Financial Data

March 31, 2013

(amounts in 000's except ratios)

(Unaudited)
















Corporate





Radio


Television


and Other


Consolidated

Three Months Ended March 31, 2013:








Net operating revenue

$24,462


$4,495


$          -


$28,957

Station operating expense

19,007


3,081


-


22,088

Corporate G&A

-


-


1,948


1,948

Operating income (loss) from continuing operations

$5,455


$1,414


$(1,948)


$4,921

Depreciation and amortization

$1,242


$342


$57


$1,641
















Corporate





Radio


Television


and Other


Consolidated

Three Months Ended March 31, 2012:








Net operating revenue

$25,199


$4,124


$          -


$29,323

Station operating expense

19,354


3,006


-


22,360

Corporate G&A

-


-


1,949


1,949

Operating income (loss) from continuing operations

$5,845


$1,118


$(1,949)


$5,014

Depreciation and amortization

$1,297


$339


$57


$1,693
































Less:


Plus:


Trailing



12 Mos Ended


3 Mos Ended


3 Mos Ended


12 Mos Ended



December 31,


March 31,


March 31,


March 31,



2012


2012


2013


2013

Trailing 12 Month Consolidated Earnings Before Interest








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








Net income

$17,925


$2,705


$2,949


$18,169

Exclusions:









(Loss) gain on sale of assets

(213)


2


(25)


(240)


Gain on sale of television station

-


-


223


223


Other

302


119


(12)


171

Total exclusions

89


121


186


154










Consolidated adjusted net income (1)

17,836


2,584


2,763


18,015

Plus:  Interest expense

1,733


528


358


1,563


Income tax expense

11,850


1,786


1,812


11,876


Depreciation & amortization expense

7,051


1,790


1,641


6,902


Amortization of television syndicated programming contracts

700


173


161


688


Non-cash stock based compensation expense

132


57


16


91

Less: Cash television programming payments

(712)


(179)


(160)


(693)

Trailing twelve month consolidated EBITDA (1)

$38,590


$6,739


$6,591


$38,442










Total long-term debt, including current maturities







$58,828

Divided by trailing twelve month consolidated EBITDA (1)







38,442

Leverage ratio







1.5



















(1)

As defined in the Company's credit facility.












SOURCE Saga Communications, Inc.



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