Saga Communications, Inc. Reports 2nd Quarter 2015 Results

Net Revenue Increased 1.6%

Aug 04, 2015, 09:00 ET from Saga Communications, Inc.

GROSSE POINTE FARMS, Mich., Aug. 4, 2015 /PRNewswire/ -- Saga Communications, Inc. (NYSE MKT: SGA) today reported net revenue increased 1.6% to $34.4 million for the quarter ended June 30, 2015.  Free cash flow decreased $281 thousand to $5.7 million.  Station operating expense increased $812 thousand to $24.3 million (station operating expense includes depreciation and amortization attributable to the stations).  Operating income was $7.5 million.  Net income for the period was $4.5 million ($0.77 per fully diluted share). 

Net revenue increased 0.3% to $63.4 million for the year ended June 30, 2015.  Free cash flow decreased $105 thousand to $9.2 million.  Station operating expense increased $630 thousand to $47.1 million (station operating expense includes depreciation and amortization attributable to the stations).  Operating income was $11.3 million.  Net income for the six month period was $6.6 million ($1.13 per fully diluted share). 

Capital expenditures were $1.3 million in the 2nd quarter compared to $1.5 million for the same period last year.  The Company currently expects to spend approximately $5.0 million to $5.5 million for capital expenditures during 2015. 

Subsequent to the end of the 2nd quarter the Company closed on it purchase of 3 FM and 2 AM radio stations serving the Harrisonburg, VA radio market.  The purchase price was $9.6 million.  The company anticipates closing on 1 additional FM serving the market at the end of August, 2015 resulting in the Company owning 4 FM's and 2 AM's in the market.  

Saga's 2015 2nd Quarter conference call will be on Tuesday, August 4, 2015 at 11:00 a.m. EDT.  The dial-in number for the call is (612) 234-9959.  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 August 4, 2015 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.

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 26 markets, including 65 FM and 32 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 and Six Months Ended

June 30, 2015 and 2014

(amounts in 000's except per share data)

(Unaudited)











 Three Months Ended  

 Six Months Ended  




 June 30, 

 June 30, 




2015

2014

2015

2014

Operating Results






Net operating revenue


$         34,358

$        33,831

$         63,419

$         63,254

Station operating expense


24,311

23,499

47,076

46,446

Corporate general and administrative


2,583

2,120

5,065

4,273

Other operating expense, net


14

-

14

-

Operating income 


$        7,450

$       8,212

$         11,264

$         12,535

Interest expense


244

272

485

544

Other income, net


(409)

(30)

(417)

(45)

Income tax expense


3,141

3,193

4,591

4,820

Net income


$           4,474

$          4,777

$           6,605

$           7,216








Earnings Per Share







Basic


$             0.77

$           0.83

$             1.14

$             1.26


Diluted


$             0.77

$           0.82

$             1.13

$             1.24








Weighted average common shares


5,712

5,699

5,711

5,695

Weighted average common and common 







equivalent shares


5,757

5,754

5,759

5,755








Free Cash Flow






Net income 


$           4,474

$          4,777

$           6,605

$           7,216

Plus: Depreciation and amortization:







        Station


1,529

1,582

3,050

3,157


        Corporate


77

58

145

128

         Deferred tax provision


906

810

1,266

1,420

         Non-cash compensation


365

191

827

379

         Other operating expense, net


14

-

14

-

         Other income, net


(409)

(30)

(417)

(45)

Less: Capital expenditures


(1,304)

(1,455)

(2,254)

(2,914)

Free cash flow


$           5,652

$          5,933

$           9,236

$           9,341








Balance Sheet Data







Working capital




$         38,173

$         33,182


Net fixed assets




$         53,900

$         56,304


Net intangible assets and other assets




$         93,620

$         95,214


Total assets




$       200,299

$        201,988


Long-term debt (including current







    portion of $0 and $5,000, respectively)




$         36,078

$         46,078


Stockholders' equity




$       120,476

$        117,783

 

 

Saga Communications, Inc.

Selected Supplemental Financial Data

For the Three Months Ended

June 30, 2015 and 2014

(amounts in 000's except per share data)

(Unaudited)










Actual


Same Station



Three Months Ended


Three Months Ended



June 30,


June 30,



2015

2014


2015

2014

Consolidated






Net operating revenue

$      34,358

$      33,831


$      34,358

$      33,355

Station operating expense

24,311

23,499


24,264

22,907

Corporate general and administrative

2,583

2,120


2,583

2,120

Other operating expense, net

14

-


14

-

Operating income

$        7,450

$        8,212


$        7,497

$        8,328

Interest expense

244

272




Other income, net

(409)

(30)




Income tax expense

3,141

3,193




Net income 

$        4,474

$        4,777




Earnings per share:






  Basic

$          0.77

$          0.83




  Diluted

$          0.77

$          0.82













Actual


Same Station



Three Months Ended


Three Months Ended



June 30,


June 30,



2015

2014


2015

2014

Radio Segment






Net operating revenue

$      29,017

$      28,851


$      29,017

$      28,375

Station operating expense

20,819

20,200


20,772

19,608

Other operating expense, net

14

-


14

-

Operating income

$        8,184

$        8,651


$        8,231

$        8,767

















Actual


Same Station



Three Months Ended


Three Months Ended



June 30,


June 30,



2015

2014


2015

2014

Television Segment






Net operating revenue

$        5,341

$        4,980


$        5,341

$        4,980

Station operating expense

3,492

3,299


3,492

3,299

Other operating expense, net

-

-


-

-

Operating income

$        1,849

$        1,681


$        1,849

$        1,681

















Actual


Same Station



Three Months Ended


Three Months Ended



June 30,


June 30,



2015

2014


2015

2014

Depreciation and amortization







by segment






Radio Segment

$        1,207

$        1,236


$        1,207

$        1,225

Television Segment

322

346


322

346

Corporate and Other

77

58


77

58



$        1,606

$        1,640


$        1,606

$        1,629








 

Saga Communications, Inc.

Selected Supplemental Financial Data

For the Six Months Ended

June 30, 2015 and 2014

(amounts in 000's except per share data)

(Unaudited)










Actual


Same Station



Six Months Ended


Six Months Ended



June 30,


June 30,



2015

2014


2015

2014

Consolidated






Net operating revenue

$      63,419

$      63,254


$      63,419

$      62,223

Station operating expense

47,076

46,446


47,029

45,228

Corporate general and administrative

5,065

4,273


5,065

4,273

Other operating expense, net

14

-


14

-

Operating income

$      11,264

$      12,535


$      11,311

$      12,722

Interest expense

485

544




Other income, net

(417)

(45)




Income tax expense

4,591

4,820




Net income 

$        6,605

$        7,216




Earnings per share:






  Basic

$          1.14

$          1.26




  Diluted

$          1.13

$          1.24













Actual


Same Station



Six Months Ended


Six Months Ended



June 30,


June 30,



2015

2014


2015

2014

Radio Segment






Net operating revenue

$      53,293

$      53,776


$      53,293

$      52,745

Station operating expense

40,241

39,939


40,194

38,721

Other operating expense, net

14

-


14

-

Operating income

$      13,038

$      13,837


$      13,085

$      14,024

















Actual


Same Station



Six Months Ended


Six Months Ended



June 30,


June 30,



2015

2014


2015

2014

Television Segment






Net operating revenue

$      10,126

$        9,478


$      10,126

$        9,478

Station operating expense

6,835

6,507


6,835

6,507

Other operating expense, net

-

-


-

-

Operating income

$        3,291

$        2,971


$        3,291

$        2,971

















Actual


Same Station



Six Months Ended


Six Months Ended



June 30,


June 30,



2015

2014


2015

2014

Depreciation and amortization







by segment






Radio Segment

$        2,381

$        2,466


$        2,381

$        2,423

Television Segment

669

691


669

691

Corporate and Other

145

128


145

128



$        3,195

$        3,285


$        3,195

$        3,242








 

 

Saga Communications, Inc.

Selected Supplemental Financial Data

June 30, 2015

(amounts in 000's except ratios)

(Unaudited)
































Less:


Plus:


Trailing



12 Mos Ended


6 Mos Ended


6 Mos Ended


12 Mos Ended



December 31,


June 30,


June 30,


June 30,



2014


2014


2015


2015

Trailing 12 Month Consolidated Earnings Before Interest








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








Net income

$14,904


$7,216


$6,605


$14,293

Exclusions:









Gain (loss) on sale of assets

1,281


45


(14)


1,222


Gain on insurance claim

-


-


417


417


Impairment of intangible assets

(1,936)


-


-


(1,936)


Other

213


168


102


147

Total exclusions

(442)


213


505


(150)










Consolidated adjusted net income (1)

15,346


7,003


6,100


14,443

Plus:  Interest expense

1,064


544


485


1,005


Income tax expense

10,050


4,820


4,591


9,821


Depreciation & amortization expense

6,702


3,285


3,195


6,612


Amortization of television syndicated programming contracts

637


308


321


650


Non-cash stock based compensation expense

826


379


827


1,274

Less: Cash television programming payments

(627)


(309)


(319)


(637)










Trailing twelve month consolidated EBITDA (1)

$33,998


$16,030


$15,200


$33,168










Total long-term debt, including current maturities







$36,078

Divided by trailing twelve month consolidated EBITDA (1)







33,168

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



June 30, 2015 and 2014



(amounts in 000's)



(Unaudited)
































Reconciliation of As-Reported (historical) information to Same Station Operating Income (Loss)





















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





June 30,


Entire Comparable


June 30,


June 30,


Entire Comparable


June 30,





2015


Period


2015


2014


Period


2014



Consolidated














Net operating revenue

$           34,358


$                     -


$            34,358


$            33,831


$                 (476)


$            33,355



Station operating expense

24,311


(47)


24,264


23,499


(592)


22,907



Corporate general and administrative

2,583


-


2,583


2,120


-


2,120



Other operating expense, net

14


-


14


-


-


-



Operating income

$             7,450


$                    47


$              7,497


$              8,212


$                  116


$              8,328





































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





June 30,


Entire Comparable


June 30,


June 30,


Entire Comparable


June 30,





2015


Period


2015


2014


Period


2014



Radio Segment














Net operating revenue

$           29,017


$                     -


$            29,017


$            28,851


$                 (476)


$            28,375



Station operating expense

20,819


(47)


20,772


20,200


(592)


19,608



Other operating expense, net

14


-


14


-


-


-



Operating income

$             8,184


$                    47


$              8,231


$              8,651


$                  116


$              8,767





































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





June 30,


Entire Comparable


June 30,


June 30,


Entire Comparable


June 30,





2015


Period


2015


2014


Period


2014



Television Segment














Net operating revenue

$             5,341


$                     -


$              5,341


$              4,980


$                     -


$              4,980



Station operating expense

3,492


-


3,492


3,299


-


3,299



Other operating expense, net

-


-


-


-


-


-



Operating income

$             1,849


$                     -


$              1,849


$              1,681


$                     -


$              1,681


 

 



Saga Communications, Inc.



Selected Financial Data Non-GAAP Disclosures



For the Six Months Ended



June 30, 2015 and 2014



(amounts in 000's)



(Unaudited)
































Reconciliation of As-Reported (historical) information to Same Station Operating Income (Loss)





















Adjustment






Adjustment







Actual


For Acquisitions


Same Station


Actual


For Acquisitions


Same Station





Six Months


and Dispositions


Six Months


Six Months


and Dispositions


Six Months





Ended


Not Included in 


Ended


Ended


Not Included in 


Ended





June 30,


Entire Comparable


June 30,


June 30,


Entire Comparable


June 30,





2015


Period


2015


2014


Period


2014



Consolidated














Net operating revenue

$           63,419


$                     -


$            63,419


$            63,254


$              (1,031)


$            62,223



Station operating expense

47,076


(47)


47,029


46,446


(1,218)


45,228



Corporate general and administrative

5,065


-


5,065


4,273


-


4,273



Other operating expense, net

14


-


14


-


-


-



Operating income

$           11,264


$                    47


$            11,311


$            12,535


$                  187


$            12,722





































Adjustment






Adjustment







Actual


For Acquisitions


Same Station


Actual


For Acquisitions


Same Station





Six Months


and Dispositions


Six Months


Six Months


and Dispositions


Six Months





Ended


Not Included in 


Ended


Ended


Not Included in 


Ended





June 30,


Entire Comparable


June 30,


June 30,


Entire Comparable


June 30,





2015


Period


2015


2014


Period


2014



Radio Segment














Net operating revenue

$           53,293


$                     -


$            53,293


$            53,776


$              (1,031)


$            52,745



Station operating expense

40,241


(47)


40,194


39,939


(1,218)


38,721



Other operating expense, net

14


-


14


-


-


-



Operating income

$           13,038


$                    47


$            13,085


$            13,837


$                  187


$            14,024





































Adjustment






Adjustment







Actual


For Acquisitions


Same Station


Actual


For Acquisitions


Same Station





Six Months


and Dispositions


Six Months


Six Months


and Dispositions


Six Months





Ended


Not Included in 


Ended


Ended


Not Included in 


Ended





June 30,


Entire Comparable


June 30,


June 30,


Entire Comparable


June 30,





2015


Period


2015


2014


Period


2014



Television Segment














Net operating revenue

$           10,126


$                     -


$            10,126


$              9,478


$                     -


$              9,478



Station operating expense

6,835


-


6,835


6,507


-


6,507



Other operating expense, net

-


-


-


-


-


-



Operating income

$             3,291


$                     -


$              3,291


$              2,971


$                     -


$              2,971

















 

 

 

SOURCE Saga Communications, Inc.



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