Saga Communications, Inc. Reports 1st Quarter 2015 Results

Free Cash Flow Increased 5.2%

News provided by

Saga Communications, Inc.

May 05, 2015, 09:00 ET

GROSSE POINTE FARMS, Mich., May 5, 2015 /PRNewswire/ -- Saga Communications, Inc. (NYSE MKT: SGA) today reported free cash flow increased 5.2% to $3.6 million for the quarter ended March 31, 2015 compared to $3.4 million for the same period last year.  Net Revenue decreased 1.2% to $29.1 million compared to $29.4 million for the same period last year.  Station operating expense decreased 0.8% to $22.8 million (station operating expense includes depreciation and amortization attributable to the stations) compared to $23.0 million for the same period last year.  Operating income was $3.8 million.  Net income for the period was $2.1 million ($0.36 per fully diluted share). 

Capital expenditures were $1.0 million in the 1st quarter compared to $1.5 million for the same period last year.  The Company currently expects to spend approximately $4.5 million to $5.0 million for capital expenditures during 2015. 

Saga's 2015 1st Quarter conference call will be on Tuesday, May 5, 2015 at 11:00 a.m. EDT.  The dial-in number for the call is (612) 332-0342.  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 10:00 a.m. EDT on May 5, 2015 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 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 25 markets, including 62 FM and 30 AM radio stations, 1 state radio network, 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, 2015 and 2014

(amounts in 000's except per share data)

(Unaudited)









 Three Months Ended  



 March 31, 



2015

2014

Operating Results



Net operating revenue

$         29,061

$        29,423

Station operating expense

22,765

22,947

Corporate general and administrative

2,482

2,153

Operating income

3,814

4,323

Interest expense

241

272

Other (income) expense, net

(8)

(15)

Income tax expense

1,450

1,627

Net income

$           2,131

$          2,439

Earnings per share




Basic

$             0.37

$           0.43

Diluted

$             0.36

$           0.42

Weighted average common shares

5,710

5,690

Weighted average common and common 




equivalent shares

5,762

5,757






Free Cash Flow



Net income 

$           2,131

$          2,439

Plus:  Depreciation and amortization:




        Station

1,521

1,575

        Corporate

68

70

          Deferred tax provision

360

610

          Non-cash compensation

462

188

          Other (income), net

(8)

(15)

Less: Capital expenditures

(950)

(1,459)

Free cash flow

$           3,584

$          3,408









 March 31, 



2015

2014

Balance Sheet Data




Working capital

$         33,262

$        32,398

Net fixed assets

$         54,557

$        56,594

Net intangible assets and other assets

$         93,477

$        94,960

Total assets

$       195,548

$      197,156

Long-term debt

$         36,078

$        46,078

Stockholders' equity

$       116,897

$      112,815






Saga Communications, Inc.

Selected Supplemental Financial Data

For the Three Months Ended

March 31, 2015 and 2014

(amounts in 000's except per share data)

(Unaudited)









Actual

Same Station


Three Months Ended

Three Months Ended


March 31,

March 31,


2015

2014

2015

2014

Consolidated




Net operating revenue

$      29,061

$      29,423

$      29,061

$      28,868

Station operating expense

22,765

22,947

22,765

22,321

Corporate general and administrative

2,482

2,153

2,482

2,153

Operating income

$        3,814

$        4,323

$        3,814

$       4,394

Interest expense

241

272


Other (income) expense, net

(8)

(15)


Income tax expense

1,450

1,627


Net income

$        2,131

$        2,439


Earnings per share:




  Basic

$          0.37

$          0.43


  Diluted

$          0.36

$          0.42











Actual

Same Station


Three Months Ended

Three Months Ended


March 31,

March 31,


2015

2014

2015

2014

Radio Segment




Net operating revenue

$      24,276

$      24,925

$      24,276

$      24,370

Station operating expense

19,422

19,739

19,422

19,113

Operating income

$        4,854

$        5,186

$        4,854

$        5,257
















Actual

Same Station


Three Months Ended

Three Months Ended


March 31,

March 31,


2015

2014

2015

2014

Television Segment




Net operating revenue

$        4,785

$        4,498

$        4,785

$        4,498

Station operating expense

3,343

3,208

3,343

3,208

Operating income 

$        1,442

$        1,290

$        1,442

$        1,290
















Actual

Same Station


Three Months Ended

Three Months Ended


March 31,

March 31,


2015

2014

2015

2014

Depreciation and amortization

     by segment




Radio Segment

$        1,174

$        1,230

$        1,174

$        1,198

Television Segment

347

345

347

345

Corporate and Other

68

70

68

70


$        1,589

$        1,645

$        1,589

$        1,613







Saga Communications, Inc.

Selected Supplemental Financial Data

March 31, 2015

(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,


2014

2014

2015

2015

Trailing 12 Month Consolidated Earnings Before Interest






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






Net income

$                  14,904

$                  2,439

$                  2,131

$                  14,596

Exclusions:







Gain on sale of assets

1,281

15

8

1,274

Impairment of intangible assets

(1,936)

-

-

(1,936)

Other

213

34

21

200








0

Total exclusions

(442)

49

29

(462)









Consolidated adjusted net income (1)

15,346

2,390

2,102

15,058

Plus:  Interest expense

1,064

272

241

1,033

Income tax expense

10,050

1,627

1,450

9,873

Depreciation & amortization expense

6,702

1,645

1,589

6,646

Amortization of television syndicated programming contracts

637

155

162

644

Non-cash stock based compensation expense

826

188

462

1,100

Less: Cash television programming payments

(627)

(155)

(159)

(631)









Trailing twelve month consolidated EBITDA (1)

$                  33,998

$                  6,122

$                  5,847

$                  33,723









Total long-term debt, including current maturities





$                  36,078

Divided by trailing twelve month consolidated EBITDA (1)





33,723

Leverage ratio





1.1



























(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, 2015 and 2014

(amounts in 000's)

(Unaudited)


























Reconciliation of Actual (historical) information to Same Station Operating Income 




























Actual

Adjustment

Same Station

Actual

Adjustment

Same Station


Three Months

For Dispositions

Three Months

Three Months

For 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,


2015

Period

2015

2014

Period

2014

Consolidated










Net operating revenue

$           29,061

$                     -

$            29,061

$            29,423

$                 (555)

$            28,868

Station operating expense

22,765

-

22,765

22,947

(626)

22,321

Corporate general and administrative

2,482

-

2,482

2,153

-

2,153

Operating income

$             3,814

$                     -

$              3,814

$              4,323

$                    71

$              4,394









































Actual

Adjustment

Same Station

Actual

Adjustment

Same Station


Three Months

For Dispositions

Three Months

Three Months

For 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,


2015

Period

2015

2014

Period

2014

Radio Segment










Net operating revenue

$           24,276

$                     -

$            24,276

$            24,925

$                 (555)

$            24,370

Station operating expense

19,422

-

19,422

19,739

(626)

19,113

Operating income

$             4,854

$                     -

$              4,854

$              5,186

$                    71

$              5,257









































Actual

Adjustment

Same Station

Actual

Adjustment

Same Station


Three Months

For Dispositions

Three Months

Three Months

For 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,


2015

Period

2015

2014

Period

2014

Television Segment










Net operating revenue

$             4,785

$                     -

$              4,785

$              4,498

$                     -

$              4,498

Station operating expense

3,343

-

3,343

3,208

-

3,208

Operating income 

$             1,442

$                     -

$              1,442

$              1,290

$                     -

$              1,290













SOURCE Saga Communications, Inc.

Related Links

http://www.sagacom.com

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