Saga Communications, Inc. Reports 4th Quarter and Year End 2013 Results Gross Revenue Exclusive of Political Revenue Increased 3.3% for the Year

GROSSE POINTE FARMS, Mich., March 11, 2014 /PRNewswire/ -- Saga Communications, Inc. (NYSE MKT SGA) today reported net operating revenue for the year ended December 31, 2013 of $129.5 million compared to $130.3 million for the same period last year.  Gross revenue exclusive of political revenue increased 3.3% for the year.  Political revenue decreased to $0.8 million in 2013 compared to $6.7 million in 2012.  Station operating expense increased $2.7 million (3.0%) to $93.0 million (station operating expense includes depreciation and amortization attributable to the stations).  $1.3 million of this increase was due to a $0.8 million increase in music licensing fees and a $0.5 million increase in health insurance costs. Operating income from continuing operations was $26.3 million.  Net income for the period was $15.3 million ($2.64 per fully diluted share) and free cash flow was $21.6 million.

For the quarter ended December 31, 2013 net operating revenue decreased 5.0% from the comparable period in 2012 to $33.8 million.  Political revenue decreased to $0.4 million in 2013 compared to $4.0 million in 2012.  Station operating expense increased $0.2 million to $23.8 million for the quarter (station operating expense includes depreciation and amortization attributable to the stations).  Operating income from continuing operations was $5.7 million.  Net income for the period was $3.2 million ($0.56 per fully diluted share) and free cash flow was $5.6 million

The Company recognized a $2.0 million impairment charge on intangible assets during the quarter ended December 31, 2013.  All per share amounts are adjusted for the 4 for 3 stock split that occurred on January 16, 2013.

Capital expenditures in the 4th quarter of 2013 were $1.7 million compared to $1.0 million for the same period last year.  For the 2013 fiscal year total capital expenditures were $5.2 million compared to $4.9 million for the comparable period last year.  The Company currently expects to spend approximately $5.5 million for capital expenditures during 2014. 

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 62 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 4th Quarter and Year End 2013 conference call will be on Tuesday, March 11, 2014 at 2:00 p.m. EDT.  The dial-in number for all calls is (612) 234-9960.  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 March 11, 2014 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 and Twelve Months Ended

December 31, 2013 and 2012

(amounts in 000's except per share data)

(Unaudited)











 Three Months Ended  

 Twelve Months Ended  




 December 31, 

 December 31, 




2013

2012

2013

2012

Operating Results






Net operating revenue


$33,760

$35,541

$129,478

$130,259

Station operating expense


23,798

23,590

92,977

90,288

Corporate general and administrative


2,191

2,161

8,172

7,960

Impairment of intangible assets


2,033

-

2,033

-

Operating income from continuing operations


5,738

9,790

26,296

32,011

Interest expense


282

366

1,305

1,733

Other (income) expense, net


2

144

(51)

279

Income from continuing operations before income tax


5,454

9,280

25,042

29,999

Income tax expense


2,230

3,489

9,992

11,939

Income from continuing operations, net of income taxes


3,224

5,791

15,050

18,060

Income (loss) from discontinued operations, net of income taxes


-

(31)

223

(135)

Net income


$3,224

$5,760

$15,273

$17,925

Basic earnings (loss) per share:







From continuing operations


$0.56

$1.02

$2.62

$3.19


From discontinued operations


-

-

0.04

(0.02)


Earnings per share


$0.56

$1.02

$2.66

$3.17

Diluted earnings (loss) per share:







From continuing operations


$0.56

$1.02

$2.60

$3.18


From discontinued operations


-

(0.01)

0.04

(0.02)


Earnings per share


$0.56

$1.01

$2.64

$3.16

Weighted average common shares


5,686

5,663

5,681

5,659

Weighted average common and common 







equivalent shares


5,751

5,692

5,745

5,672








Free Cash Flow






Net income 


$3,224

$5,760

$15,273

$17,925

Plus:  Depreciation and amortization:







        Station


1,725

1,735

6,540

6,633


        Corporate


58

55

228

225


        Discontinued operations


-

-

-

194

          Deferred tax provision


140

1,470

2,805

4,540

          Non-cash compensation


119

25

135

132

          Gain on disposal of television station


-

-

(223)

-

          Impairment of intangible assets


2,033

-

2,033

-

          Other (income) expense, net


2

136

(51)

271

Less: Capital expenditures


(1,680)

(956)

(5,152)

(4,860)

Free cash flow


$5,621

$8,225

$21,588

$25,060








Balance Sheet Data







Working capital




$28,079

$27,066


Net fixed assets




$56,337

$58,462


Net intangible assets and other assets




$94,806

$98,434


Total assets




$193,224

$197,330


Long-term debt (including current 







   portion of $1,078 and $0, respectively)




$46,078

$58,828


Stockholders' equity




$109,701

$104,209








 

 











Saga Communications, Inc.

Selected Supplemental Financial Data

For the Three and Twelve Months Ended

December 31, 2013 and 2012

(amounts in 000's)

(Unaudited)
















Corporate





Radio


Television


and Other


Consolidated

Three Months Ended December 31, 2013:








Net operating revenue

$28,578


$5,182


$          -


$33,760

Station operating expense

20,372


3,426


-


23,798

Corporate G&A

-


-


2,191


2,191

Impairment of intangible assets

2,033


-


-


2,033

Operating income (loss) from continuing operations

$6,173


$1,756


$(2,191)


$5,738

Depreciation and amortization

$1,358


$367


$58


$1,783
















Corporate





Radio


Television


and Other


Consolidated

Three Months Ended December 31, 2012:








Net operating revenue

$30,583


$4,958


$          -


$35,541

Station operating expense

20,351


3,239


-


23,590

Corporate G&A

-


-


2,161


2,161

Operating income (loss) from continuing operations

$10,232


$1,719


$(2,161)


$9,790

Depreciation and amortization

$1,350


$385


$55


$1,790
















Corporate





Radio


Television


and Other


Consolidated

Twelve Months Ended December 31, 2013:








Net operating revenue

$109,818


$19,660


$          -


$129,478

Station operating expense

79,933


13,044


-


92,977

Corporate G&A

-


-


8,172


8,172

Impairment of intangible assets

2,033


-


-


2,033

Operating income (loss) from continuing operations

$27,852


$6,616


(8,172)


$26,296

Depreciation and amortization

$5,119


$1,421


$228


$6,768
















Corporate





Radio


Television


and Other


Consolidated

Twelve Months Ended December 31, 2012:








Net operating revenue

$111,763


$18,496


$          -


$130,259

Station operating expense

77,992


12,296


-


90,288

Corporate G&A

-


-


7,960


7,960

Operating income (loss) from continuing operations

$33,771


$6,200


$(7,960)


$32,011

Depreciation and amortization

$5,222


$1,411


$225


$6,858



















 

 

Saga Communications, Inc.

Selected Supplemental Financial Data

December 31, 2013 and 2012

(amounts in 000's except ratios)

(Unaudited)


















Trailing



Twelve Months Ended



December 31,



2013


2012

Trailing 12 Month Consolidated Earnings Before Interest,




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




Net income

$15,273


$17,925

Exclusions:





Gain (loss) on sale of assets

126


(213)


Impairment of intangible assets

(2,033)


-


Gain on sale of television station

223


-


Other

(39)


302

Total exclusions

(1,723)


89






Consolidated adjusted net income (1)

16,996


17,836

Plus:

Interest expense

1,305


1,733


Income tax expense

9,992


11,850


Depreciation & amortization expense

6,768


7,051


Amortization of television syndicated programming contracts

637


700


Non-cash stock based compensation expense

135


132

Less: Cash television programming payments

(628)


(712)

Trailing twelve month consolidated EBITDA (1)

$35,205


$38,590






Total long-term debt, including current maturities

$46,078


$58,828

Divided by trailing twelve month consolidated EBITDA (1)

35,205


38,590

Leverage ratio

1.3


1.5











(1)

As defined in the Company's credit facility.









 

SOURCE Saga Communications, Inc.



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