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GROSSE POINTE FARMS, Mich., March 12, 2020 /PRNewswire/ -- Saga Communications, Inc. (Nasdaq: SGA) today reported net revenue of $31.8 million for the quarter compared to $32.9 million for the same quarter last year. Gross revenue was approximately flat with last year for the quarter at $33.7 million net of political revenue of $535 thousand this quarter and $1.6 million for the same period last year. Station operating expense decreased $711 thousand to $23.1 million and operating income decreased $575 thousand to $5.4 million. Net Income decreased $454 thousand to $3.8 million for the quarter. Diluted earnings per share were $0.64/share in the fourth quarter of 2019 compared to $0.72/share during the same period in 2018. Primarily due to a $460 thousand reduction in the Company's deferred tax provision free cash flow was $5.4 million for the quarter ended December 31, 2019 compared to $5.9 million for the same period last year.
Gross Revenue was flat with last year for the twelve-month period at $131.5 million net of political revenue of $887 thousand this year and $2.9 million for the same period last year. Net revenue decreased $1.8 million to $123.1 million. Station operating expense decreased $1.0 million to $92.7 million and operating income decreased $874 thousand to $18.8 million. Net income for the twelve-month period ended December 31, 2019 was $13.3 million compared to $13.7 million for the same period last year. Diluted earnings per share were $2.23/share for the twelve-month period in 2019 compared to $2.30/share during the same period in 2018. Primarily due to a $1.2 million reduction in the Company's deferred tax provision free cash flow was $18.1 million compared to $19.5 million for the twelve-month period ended December 31, 2019.
The Company had $44.0 million in cash on hand as of December 31, 2019 and $47.0 million as of March 9, 2020. The Company's total bank debt was $10 million as of the end of the year. Including the recently announced $0.32 per share dividend which will be paid on April 10, 2020, the Company will have paid over $71 million in dividends since December 3, 2012.
Capital expenditures in the fourth quarter were $1.1 million compared to $1.5 million for the same period last year. For the twelve-month period capital expenditures were $5.7 million compared to $5.9 million last year. The Company expects to spend approximately $5.0 – 5.5 million for capital expenditures during 2020.
Saga's 2019 4th Quarter conference call will be on Thursday, March 12, 2020 at 11:00 a.m. EDT. The dial-in number for the call is 973/528-0008. Enter conference code 648752. 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. EDT on March 12, 2020 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 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 Twelve Months Ended | ||||||
December 31, 2019 and 2018 | ||||||
(amounts in 000's except per share data) | ||||||
(Unaudited) | ||||||
Three Months Ended | Twelve Months Ended | |||||
December 31, | December 31, | |||||
2019 | 2018 | 2019 | 2018 | |||
Operating Results | ||||||
Net operating revenue | $ 31,791 | $ 32,938 | $ 123,072 | $ 124,829 | ||
Station operating expense | 23,050 | 23,761 | 92,692 | 93,727 | ||
Corporate general and administrative | 3,281 | 3,154 | 11,460 | 11,359 | ||
Other operating expense | 26 | 14 | 112 | 61 | ||
Operating income | 5,434 | 6,009 | 18,808 | 19,682 | ||
Interest expense | 163 | 229 | 735 | 946 | ||
Interest income | (125) | (187) | (610) | (631) | ||
Other (income) expense, net | (5) | 2 | (16) | (23) | ||
Income before income tax expense | 5,401 | 5,965 | 18,699 | 19,390 | ||
Income tax expense | 1,560 | 1,670 | 5,420 | 5,700 | ||
Net income | $ 3,841 | $ 4,295 | $ 13,279 | $ 13,690 | ||
Basic earnings per share | $ 0.64 | $ 0.72 | $ 2.23 | $ 2.30 | ||
Diluted earnings per share | $ 0.64 | $ 0.72 | 2.23 | 2.30 | ||
Weighted average common shares | 5,817 | 5,820 | 5,834 | 5,829 | ||
Weighted average common and common | ||||||
equivalent shares | 5,817 | 5,820 | 5,834 | 5,829 | ||
Free Cash Flow | ||||||
Net income | $ 3,841 | $ 4,295 | $ 13,279 | $ 13,690 | ||
Plus: Depreciation and amortization: | ||||||
Station | 1,747 | 1,718 | 6,641 | 6,507 | ||
Corporate | 90 | 70 | 304 | 279 | ||
Deferred tax provision | 320 | 780 | 1,420 | 2,660 | ||
Non-cash compensation | 473 | 526 | 2,129 | 2,201 | ||
Other operating expense, net | 26 | 14 | 112 | 61 | ||
Other (income) expense , net | (5) | 2 | (16) | (23) | ||
Less: Capital expenditures | (1,065) | (1,472) | (5,732) | (5,922) | ||
Free cash flow | $ 5,427 | $ 5,933 | $ 18,137 | $ 19,453 | ||
December 31, | ||||||
2019 | 2018 | |||||
Balance Sheet Data | ||||||
Working capital | $ 49,219 | $ 45,430 | ||||
Net fixed assets | $ 58,711 | $ 59,103 | ||||
Net intangible assets and other assets | $ 126,963 | $ 120,779 | ||||
Total assets | $ 252,394 | $ 248,477 | ||||
Long-term debt (including current portion | ||||||
of $0 and $5,000, respectively) | $ 10,000 | $ 20,000 | ||||
Stockholders' equity | $ 192,352 | $ 184,999 | ||||
Saga Communications, Inc. | |||||||||
Selected Supplemental Financial Data | |||||||||
For the Three Months Ended | |||||||||
December 31, 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 | |||||||
December 31, | December 31, | December 31, | |||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||
Consolidated | |||||||||
Net operating revenue | $ 31,791 | $ 32,938 | $ 30,705 | $ 32,938 | $ 31,791 | $ 34,008 | |||
Station operating expense | 23,050 | 23,761 | 22,101 | 23,761 | 23,050 | 24,697 | |||
Corporate general and administrative | 3,281 | 3,154 | 3,281 | 3,154 | 3,281 | 3,154 | |||
Other operating expense | 26 | 14 | 26 | 14 | 26 | 14 | |||
Operating income | 5,434 | 6,009 | $ 5,297 | $ 6,009 | 5,434 | 6,143 | |||
Interest expense | 163 | 229 | 163 | 229 | |||||
Interest income | (125) | (187) | (125) | (187) | |||||
Other (income) expense, net | (5) | 2 | (5) | 2 | |||||
Income before income tax expense | 5,401 | 5,965 | 5,401 | 6,099 | |||||
Income tax expense | 1,560 | 1,670 | 1,560 | 1,711 | |||||
Net income | $ 3,841 | $ 4,295 | $ 3,841 | $ 4,388 | |||||
Basic earnings per share | $ 0.64 | $ 0.72 | $ 0.64 | $ 0.74 | |||||
Diluted earnings per share | $ 0.64 | $ 0.72 | $ 0.64 | $ 0.74 | |||||
Actual | Same Station(1) | Pro Forma (2) | |||||||
Three Months Ended | Three Months Ended | Three Months Ended | |||||||
December 31, | December 31, | December 31, | |||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||
Depreciation and amortization | |||||||||
by segment | |||||||||
Radio Stations | $ 1,747 | $ 1,718 | $ 1,599 | $ 1,718 | $ 1,747 | $ 1,855 | |||
Corporate | 90 | 70 | 90 | 70 | 90 | 70 | |||
$ 1,837 | $ 1,788 | $ 1,689 | $ 1,788 | $ 1,837 | $ 1,925 | ||||
(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 2018 and 2019 occurred as of January 1, 2018. | ||||||||
Saga Communications, Inc. | |||||||||
Selected Supplemental Financial Data | |||||||||
For the Twelve Months Ended | |||||||||
December 31, 2019 and 2018 | |||||||||
(amounts in 000's except per share data) | |||||||||
(Unaudited) | |||||||||
Actual | Same Station(1) | Pro Forma(2) | |||||||
Twelve Months Ended | Twelve Months Ended | Twelve Months Ended | |||||||
December 31, | December 31, | December 31, | |||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||
Consolidated | |||||||||
Net operating revenue | $ 123,072 | $ 124,829 | $ 118,862 | $ 124,829 | $ 123,072 | $ 129,228 | |||
Station operating expense | 92,692 | 93,727 | 89,039 | 93,727 | 92,692 | 97,314 | |||
Corporate general and administrative | 11,460 | 11,359 | 11,460 | 11,359 | 11,460 | 11,359 | |||
Other operating expense | 112 | 61 | 112 | 61 | 112 | 61 | |||
Operating income | 18,808 | 19,682 | $ 18,251 | $ 19,682 | 18,808 | 20,494 | |||
Interest expense | 735 | 946 | 735 | 946 | |||||
Interest income | (610) | (631) | (610) | (631) | |||||
Other (income) expense, net | (16) | (23) | (16) | (23) | |||||
Income before income tax expense | 18,699 | 19,390 | 18,699 | 20,202 | |||||
Income tax expense | 5,420 | 5,700 | 5,420 | 5,944 | |||||
Net income | $ 13,279 | $ 13,690 | $ 13,279 | $ 14,258 | |||||
Basic earnings per share | $ 2.23 | $ 2.30 | $ 2.23 | $ 2.40 | |||||
Diluted earnings per share | $ 2.23 | $ 2.30 | $ 2.23 | $ 2.40 | |||||
Actual | Same Station(1) | Pro Forma (2) | |||||||
Twelve Months Ended | Twelve Months Ended | Twelve Months Ended | |||||||
December 31, | December 31, | December 31, | |||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||
Depreciation and amortization | |||||||||
by segment | |||||||||
Radio Stations | $ 6,641 | $ 6,507 | $ 6,085 | $ 6,507 | $ 6,641 | $ 7,039 | |||
Corporate | 304 | 279 | 304 | 279 | 304 | 279 | |||
$ 6,945 | $ 6,786 | $ 6,389 | $ 6,786 | $ 6,945 | $ 7,318 | ||||
(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 2018 and 2019 occurred as of January 1, 2018. | ||||||||
Saga Communications, Inc. | |||||
Selected Supplemental Financial Data | |||||
December 31, 2019 and 2018 | |||||
(amounts in 000's except ratios) | |||||
(Unaudited) | |||||
12 Months Ended | |||||
December 31, | |||||
2019 | 2018 (2) | ||||
(Proforma) | |||||
Trailing 12 Month Consolidated Earnings Before Interest, | |||||
Taxes, Depreciation and Amortization ("EBITDA")(1) | |||||
Net income | $ 13,279 | $ 14,258 | |||
Exclusions: | |||||
Gain (loss) on sale of assets | (112) | (61) | |||
Other gains and (losses) | 16 | 23 | |||
Interest income | 610 | 631 | |||
Other | 190 | (107) | |||
Total exclusions | 704 | 486 | |||
Consolidated adjusted net income(1) | 12,575 | 13,772 | |||
Plus: Interest expense | 735 | 946 | |||
Income tax expense | 5,420 | 5,944 | |||
Depreciation & amortization expense | 6,945 | 7,318 | |||
Non-cash stock based compensation expense | 2,129 | 2,201 | |||
Trailing twelve month consolidated EBITDA (1) | $ 27,804 | $ 30,181 | |||
Total long-term debt, including current maturities | $ 10,000 | $ 20,000 | |||
Divided by trailing twelve month consolidated EBITDA (1) | 27,804 | 30,181 | |||
Leverage ratio | 0.36 | 0.66 | |||
(1) | As defined in the Company's credit facility. | ||||
(2) | 2018 includes proforma acquisitions. | ||||
Saga Communications, Inc. | ||||||||||||||
Selected Financial Data Non-GAAP Disclosures | ||||||||||||||
For the Three and Twelve Months Ended | ||||||||||||||
December 31, 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 | |||||||||
December 31, | Entire Comparable | December 31, | December 31, | Entire Comparable | December 31, | |||||||||
2019 | Period | 2019 | 2018 | Period | 2018 | |||||||||
Consolidated | ||||||||||||||
Net operating revenue | $ 31,791 | $ (1,086) | $ 30,705 | $ 32,938 | $ - | $ 32,938 | ||||||||
Station operating expense | 23,050 | (949) | 22,101 | 23,761 | - | 23,761 | ||||||||
Corporate general and administrative | 3,281 | - | 3,281 | 3,154 | - | 3,154 | ||||||||
Other operating expense | 26 | - | 26 | 14 | - | 14 | ||||||||
Operating income | $ 5,434 | $ (137) | $ 5,297 | $ 6,009 | $ - | $ 6,009 | ||||||||
Depreciation and amortization | $ 1,837 | $ (148) | $ 1,689 | $ 1,788 | $ - | $ 1,788 | ||||||||
Adjustment | Adjustment | |||||||||||||
Actual | For Acquisitions | Same Station | Actual | For Acquisitions | Same Station | |||||||||
Twelve Months | and Dispositions | Twelve Months | Twelve Months | and Dispositions | Twelve Months | |||||||||
Ended | Not Included in | Ended | Ended | Not Included in | Ended | |||||||||
December 31, | Entire Comparable | December 31, | December 31, | Entire Comparable | December 31, | |||||||||
2019 | Period | 2019 | 2018 | Period | 2018 | |||||||||
Consolidated | ||||||||||||||
Net operating revenue | $ 123,072 | $ (4,210) | $ 118,862 | $ 124,829 | $ - | $ 124,829 | ||||||||
Station operating expense | 92,692 | (3,653) | 89,039 | 93,727 | - | 93,727 | ||||||||
Corporate general and administrative | 11,460 | - | 11,460 | 11,359 | - | 11,359 | ||||||||
Other operating expense | 112 | - | 112 | 61 | - | 61 | ||||||||
Operating income | $ 18,808 | $ (557) | $ 18,251 | $ 19,682 | $ - | $ 19,682 | ||||||||
Depreciation and amortization | $ 6,945 | $ (556) | $ 6,389 | $ 6,786 | $ - | $ 6,786 | ||||||||
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SOURCE Saga Communications, Inc.
