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Saga Communications, Inc. Reports 3rd Quarter and Year-To-Date 2019 Results Net Income for the Nine-Month Period Ended September 30, 2019 is Flat with the Same Period in 2018
[November 07, 2019]

Saga Communications, Inc. Reports 3rd Quarter and Year-To-Date 2019 Results Net Income for the Nine-Month Period Ended September 30, 2019 is Flat with the Same Period in 2018


GROSSE POINTE FARMS, Mich., Nov. 7, 2019 /PRNewswire/ -- Saga Communications, Inc. (Nasdaq: SGA) today reported net revenue of $31.3 million for the quarter compared to $31.7 million for the same quarter last year.  Gross Revenue was flat with last year for the quarter net of $96 thousand of political revenue this quarter and $486 thousand of political revenue for the same period last year.  Station operating expense increased $171 thousand to $23.6 million and operating income decreased $520 thousand to $4.8 million compared to $5.3 million for the same period last year.  Net Income decreased $361 thousand to $3.3 million for the quarter.  Diluted earnings per share were $0.56/share in the third quarter of 2019 compared to $0.62/share during the same period in 2018.  Free cash flow decreased $697 thousand to $4.5 million for the quarter ended September 30, 2019, with $385 thousand of the decrease due to a reduction in the Company's deferred tax provision. 

On a same station basis for the quarter ended September 30, 2019 net revenue decreased $1.4 million to $30.3 million.  Operating expense decreased $779 thousand to $22.7 million while operating income decreased $593 thousand to $4.7 million.

Net income for the nine-month period ended September 30, 2019 was flat with the same period last year at $9.4 million.  Net revenue decreased $610 thousand to $91.3 million. Gross Revenue was flat with last year for the nine-month period net of $351 thousand of political revenue this year and $1.3 million of political revenue for the same period last year.  Station operating expense decreased $324 thousand to $69.6 million and operating income decreased $299 thousand to $13.4 million compared to $13.7 million for the same period last year.  Diluted earnings per share were $1.59/share for the nine-month period in 2019 compared to $1.58/share during the same period in 2018.  Free cash flow decreased $810 thousand to $12.7 million for the nine-month period ended September 30, 2019, with $780 thousand of the decrease due to a reduction in the Company's deferred tax provision. 

On a same station basis for the nine-month period ended September 30, 2019 net revenue decreased $3.8 million to $88.1 million.  Operating expense decreased $3.0 million to $66.9 million while operating income decreased $717 thousand to $13.0 million.

The Company had $41.1 million in cash on hand as of September 30, 2019 and $42.3 million as of November 4, 2019.  The Company's total bank debt was $10 million as of the end of the quarter.  Including the recent $0.30 per share dividend which was paid on October 11, 2019, the Company will have paid almost $68 million in dividends since December 3, 2012.

Capital expenditures in the third quarter were flat with the same period last year at $1.5 million.  For the nine-month period capital expenditures were $4.7 million compared to $4.5 million last year.  The Company expects to spend approximately $5.5 - 6.0 million for capital expenditures during 2019.

Saga's 2019 3rd Quarter conference call will be on Thursday, November 7, 2019 at 11:00 a.m. EST.  The dial-in number for the call is 973/528-0008.  Enter conference code 152645.  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. EST on November 7, 2019 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", "same station", and "proforma" information as well as the Company's trailing twelve-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. The "proforma" amounts assume all acquisitions in 2018 and 2019 occurred as of January 1, 2018.

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 27 markets, including 79 FM radio stations, 34 AM radio stations and 77 metro signals. 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 Nine Months Ended

September 30, 2019 and 2018

(amounts in 000's except per share data)

(Unaudited)











 Three Months Ended  

 Nine Months Ended  




 September 30, 

 September 30, 




2019

2018

2019

2018

Operating Results






Net operating revenue


$         31,274

$        31,648

$         91,281

$         91,891

Station operating expense


23,600

23,429

69,642

69,966

Corporate general and administrative


2,788

2,813

8,179

8,205

Other operating expense, net


85

85

86

47

Operating income


4,801

5,321

13,374

13,673

Interest expense


180

243

572

717

Interest income


(162)

(167)

(485)

(444)

Other income, net


(11)

(25)

(11)

(25)

Income before income tax expense


4,794

5,270

13,298

13,425

Income tax expense


1,460

1,575

3,860

4,030

Net income


$           3,334

$          3,695

$           9,438

$           9,395








Basic earnings per share


$             0.56

$           0.62

$             1.59

$             1.58

Diluted earnings per share


$             0.56

$           0.62

$             1.59

$             1.58








Weighted average common shares


5,834

5,822

5,840

5,833

Weighted average common and common 







equivalent shares


5,834

5,822

5,840

5,833








Free Cash Flow






Net income 


$           3,334

$          3,695

$           9,438

$           9,395

Plus: Depreciation and amortization:







        Radio Stations


1,637

1,603

4,894

4,789


        Corporate


71

71

214

209

         Deferred tax provision


400

785

1,100

1,880

         Non-cash compensation


532

570

1,656

1,675

         Other operating expense, net


85

85

86

47

         Other income, net


(11)

(25)

(11)

(25)

Less:  Capital expenditures


(1,505)

(1,544)

(4,667)

(4,450)

Free cash flow


$           4,543

$          5,240

$         12,710

$         13,520













 September 30, 






2019

2018

Balance Sheet Data







Working capital




$         46,234

$         57,828


Net fixed assets




59,234

56,152


Net intangible assets and other assets




126,325

114,848


Total assets




248,999

242,561


Long-term debt 




10,000

20,000


Stockholders' equity




190,403

184,158


 

 

Saga Communications, Inc.

Selected Supplemental Financial Data

For the Three Months Ended

September 30, 2019 and 2018

(amounts in 000's except per share data)

(Unaudited)













Actual


Same Station (1)


Pro Forma (2)



Three Months Ended


Three Months Ended


Three Months Ended



September 30,


September 30,


September 30,



2019

2018


2019

2018


2019

2018

Consolidated









Net operating revenue

$      31,274

$    31,648


$      30,251

$      31,648


$      31,274

$      32,772

Station operating expense

23,600

23,429


22,650

23,429


23,600

24,321

Corporate general and administrative

2,788

2,813


2,788

2,813


2,788

2,813

Other operating expense, net

85

85


85

85


85

85

Operating income

4,801

5,321


$        4,728

$        5,321


4,801

5,553

Interest expense

180

243





180

243

Interest income

(162)

(167)





(162)

(167)

Other income, net

(11)

(25)





(11)

(25)

Income before income tax expense

4,794

5,270





4,794

5,502

Income tax expense

1,460

1,575





1,460

1,644

Net income 

$        3,334

$      3,695





$        3,334

$        3,858











Basic earnings per share

$          0.56

$        0.62





$          0.56

$          0.65

Diluted earnings per share

$          0.56

$        0.62





$          0.56

$          0.65













Actual


Same Station (1)


Pro Forma (2)



Three Months Ended


Three Months Ended


Three Months Ended



September 30,


September 30,


September 30,



2019

2018


2019

2018


2019

2018

Depreciation and amortization










by segment









Radio Stations

$        1,637

$      1,603


$        1,488

$        1,603


$        1,637

$        1,732

Corporate

71

71


71

71


71

71



$        1,708

$      1,674


$        1,559

$        1,674


$        1,708

$        1,803











(1)

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


(2)

Pro Forma results assume all acquisitions in 2019 and 2018 occurred as of January 1, 2018.




 

 

Saga Communications, Inc.

Selected Supplemental Financial Data

For the Nine Months Ended

September 30, 2019 and 2018

(amounts in 000's except per share data)

(Unaudited)













Actual


Same Station (1)


Pro Forma (2)



Nine Months Ended


Nine Months Ended


Nine Months Ended



September 30,


September 30,


September 30,



2019

2018


2019

2018


2019

2018

Consolidated









Net operating revenue

$      91,281

$      91,891


$      88,146

$      91,891


$      91,281

$      95,220

Station operating expense

69,642

69,966


66,925

69,966


69,642

72,617

Corporate general and administrative

8,179

8,205


8,179

8,205


8,179

8,205

Other operating expense, net 

86

47


86

47


86

47

Operating income

13,374

13,673


$      12,956

$      13,673


13,374

14,351

Interest expense

572

717





572

717

Interest income

(485)

(444)





(485)

(444)

Other income, net

(11)

(25)





(11)

(25)

Income before income tax expense

13,298

13,425





13,298

14,103

Income tax expense

3,860

4,030





3,860

4,233

Net income 

$        9,438

$        9,395





$        9,438

$        9,870











Basic earnings per share

$          1.59

$          1.58





$          1.59

$          1.66

Diluted earnings per share

$          1.59

$          1.58





$          1.59

$          1.66













Actual


Same Station (1)


Pro Forma (2)



Nine Months Ended


Nine Months Ended


Nine Months Ended



September 30,


September 30,


September 30,



2019

2018


2019

2018


2019

2018

Depreciation and amortization










by segment









Radio Stations

$        4,894

$        4,789


$        4,477

$        4,789


$        4,894

$        5,184

Corporate

214

209


214

209


214

209



$        5,108

$        4,998


$        4,691

$        4,998


$        5,108

$        5,393











(1)

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


(2)

Pro Forma results assume all acquisitions in 2019 and 2018 occurred as of January 1, 2018.




 

 

Saga Communications, Inc.

Selected Supplemental Financial Data

September 30, 2019

(amounts in 000's except ratios)

(Unaudited)






































Less:


Plus:




Trailing



12 Mos Ended


9 Mos Ended


9 Mos Ended


Add:


12 Mos Ended



December 31,


September 30, 


September 30, 


Proforma


September 30, 



2018


2018


2019


Acquisitions (2)


2019

Trailing 12 Month Consolidated Earnings Before Interest,










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










Net income

$                  13,690


$                  9,395


$                  9,438


$                       93


$                  13,826

Exclusions:











Gain (loss) on sale of assets 

(61)


(47)


(86)


-


(100)


Other gains and (losses)

23


25


11


-


9


Interest income

631


444


485


-


672


Other

(107)


58


239


-


74

Total exclusions

486


480


649


-


655

Consolidated adjusted net income (1)

13,204


8,915


8,789


93


13,171

Plus:  Interest expense

946


717


572


-


801


Income tax expense

5,700


4,030


3,860


41


5,571


Depreciation & amortization expense

6,786


4,998


5,108


133


7,029


Non-cash stock based compensation expense

2,201


1,675


1,656


-


2,182

Trailing twelve month consolidated EBITDA (1)

$                  28,837


$                 20,335


$                 19,985


$                     267


$                  28,754












Total long-term debt, including current maturities









$                  10,000

Divided by trailing twelve month consolidated EBITDA (1)









$                  28,754

Leverage ratio









0.35


































(1)

As defined in the Company's credit facility.










(2)

Trailing 12 Month Adjustment










 


Saga Communications, Inc.


Selected Financial Data Non-GAAP Disclosures


For the Three and Nine Months Ended


September 30, 2019 and 2018


(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




September 30,


Entire Comparable


September 30,


September 30,


Entire Comparable


September 30,




2019


Period


2019


2018


Period


2018


Consolidated













Net operating revenue

$              31,274


$              (1,023)


$              30,251


$              31,648


$                     -


$              31,648


Station operating expense

23,600


(950)


22,650


23,429


-


23,429


Corporate general and administrative

2,788


-


2,788


2,813


-


2,813


Other operating expense, net

85


-


85


85


-


85


Operating income

$                4,801


$                   (73)


$                4,728


$                5,321


$                     -


$                5,321
















Depreciation and amortization

$                1,708


$                 (149)


$                1,559


$                1,674


$                     -


$                1,674


































Adjustment






Adjustment






Actual


For Acquisitions


Same Station


Actual


For Acquisitions


Same Station




Nine Months


and Dispositions


Nine Months


Nine Months


and Dispositions


Nine Months




Ended


Not Included in 


Ended


Ended


Not Included in 


Ended




September 30,


Entire Comparable


September 30,


September 30,


Entire Comparable


September 30,




2019


Period


2019


2018


Period


2018


Consolidated













Net operating revenue

$              91,281


$              (3,135)


$              88,146


$              91,891


$                     -


$              91,891


Station operating expense

69,642


(2,717)


66,925


69,966


-


69,966


Corporate general and administrative

8,179


-


8,179


8,205


-


8,205


Other operating expense, net

86


-


86


47


-


47


Operating income

$              13,374


$                 (418)


$              12,956


$              13,673


$                     -


$              13,673
















Depreciation and amortization

$                5,108


$                 (417)


$                4,691


$                4,998


$                     -


$                4,998


 

Saga Communications, Inc. logo. (PRNewsFoto/Saga Communications, Inc.) (PRNewsfoto/Saga Communications, Inc.)

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/saga-communications-inc-reports-3rd-quarter-and-year-to-date-2019-results-net-income-for-the-nine-month-period-ended-september-30-2019-is-flat-with-the-same-period-in-2018-300953320.html

SOURCE Saga Communications, Inc.


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