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 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 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. |
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Selected Consolidated Financial Data |
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For The Three Months Ended |
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March 31, 2015 and 2014 |
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(amounts in 000's except per share data) |
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(Unaudited) |
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| Three Months Ended |
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| March 31, |
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| 2015 | 2014 |
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Operating Results |
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Net operating revenue |
| $ 29,061 | $ 29,423 |
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Station operating expense |
| 22,765 | 22,947 |
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Corporate general and administrative |
| 2,482 | 2,153 |
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Operating income |
| 3,814 | 4,323 |
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Interest expense |
| 241 | 272 |
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Other (income) expense, net |
| (8) | (15) |
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Income tax expense |
| 1,450 | 1,627 |
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Net income |
| $ 2,131 | $ 2,439 |
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Earnings per share |
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| Basic |
| $ 0.37 | $ 0.43 |
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| Diluted |
| $ 0.36 | $ 0.42 |
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Weighted average common shares |
| 5,710 | 5,690 |
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Weighted average common and common |
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| equivalent shares |
| 5,762 | 5,757 |
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Free Cash Flow |
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Net income |
| $ 2,131 | $ 2,439 |
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Plus: Depreciation and amortization: |
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| Station |
| 1,521 | 1,575 |
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| Corporate |
| 68 | 70 |
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Deferred tax provision |
| 360 | 610 |
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Non-cash compensation |
| 462 | 188 |
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Other (income), net |
| (8) | (15) |
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Less: Capital expenditures |
| (950) | (1,459) |
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Free cash flow |
| $ 3,584 | $ 3,408 |
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| March 31, |
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| 2015 | 2014 |
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Balance Sheet Data |
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| Working capital |
| $ 33,262 | $ 32,398 |
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| Net fixed assets |
| $ 54,557 | $ 56,594 |
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| Net intangible assets and other assets |
| $ 93,477 | $ 94,960 |
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| Total assets |
| $ 195,548 | $ 197,156 |
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| Long-term debt |
| $ 36,078 | $ 46,078 |
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| Stockholders' equity |
| $ 116,897 | $ 112,815 |
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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) |
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| Actual |
| Same Station |
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| Three Months Ended |
| Three Months Ended |
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| March 31, |
| March 31, |
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| 2015 | 2014 |
| 2015 | 2014 |
Consolidated |
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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 |
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|
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Other (income) expense, net | (8) | (15) |
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Income tax expense | 1,450 | 1,627 |
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Net income | $ 2,131 | $ 2,439 |
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Earnings per share: |
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Basic | $ 0.37 | $ 0.43 |
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Diluted | $ 0.36 | $ 0.42 |
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| Actual |
| Same Station |
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| Three Months Ended |
| Three Months Ended |
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| March 31, |
| March 31, |
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| 2015 | 2014 |
| 2015 | 2014 |
Radio Segment |
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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 |
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| Actual |
| Same Station |
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| Three Months Ended |
| Three Months Ended |
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| March 31, |
| March 31, |
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| 2015 | 2014 |
| 2015 | 2014 |
Television Segment |
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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 |
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| Actual |
| Same Station |
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| Three Months Ended |
| Three Months Ended |
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| March 31, |
| March 31, |
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| 2015 | 2014 |
| 2015 | 2014 |
Depreciation and amortization by segment |
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Radio Segment | $ 1,174 | $ 1,230 |
| $ 1,174 | $ 1,198 |
Television Segment | 347 | 345 |
| 347 | 345 |
Corporate and Other | 68 | 70 |
| 68 | 70 |
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| $ 1,589 | $ 1,645 |
| $ 1,589 | $ 1,613 |
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Saga Communications, Inc. |
Selected Supplemental Financial Data |
March 31, 2015 |
(amounts in 000's except ratios) |
(Unaudited) |
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| Less: |
| Plus: |
| Trailing |
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| 12 Mos Ended |
| 3 Mos Ended |
| 3 Mos Ended |
| 12 Mos Ended |
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| December 31, |
| March 31, |
| March 31, |
| March 31, |
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| 2014 |
| 2014 |
| 2015 |
| 2015 |
Trailing 12 Month Consolidated Earnings Before Interest |
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Taxes, Depreciation and Amortization ("EBITDA") (1) |
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Net income | $ 14,904 |
| $ 2,439 |
| $ 2,131 |
| $ 14,596 |
Exclusions: |
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| Gain on sale of assets | 1,281 |
| 15 |
| 8 |
| 1,274 |
| Impairment of intangible assets | (1,936) |
| - |
| - |
| (1,936) |
| Other | 213 |
| 34 |
| 21 |
| 200 |
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| 0 |
Total exclusions | (442) |
| 49 |
| 29 |
| (462) |
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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) |
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Trailing twelve month consolidated EBITDA (1) | $ 33,998 |
| $ 6,122 |
| $ 5,847 |
| $ 33,723 |
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Total long-term debt, including current maturities |
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| $ 36,078 |
Divided by trailing twelve month consolidated EBITDA (1) |
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| 33,723 |
Leverage ratio |
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| 1.1 |
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(1) | As defined in the Company's credit facility. |
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| Saga Communications, Inc. |
| Selected Financial Data Non-GAAP Disclosures |
| For the Three Months Ended |
| March 31, 2015 and 2014 |
| (amounts in 000's) |
| (Unaudited) |
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Reconciliation of Actual (historical) information to Same Station Operating Income |
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| Actual |
| Adjustment |
| Same Station |
| Actual |
| Adjustment |
| Same Station |
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| Three Months |
| For Dispositions |
| Three Months |
| Three Months |
| For Dispositions |
| Three Months |
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| Ended |
| Not Included in |
| Ended |
| Ended |
| Not Included in |
| Ended |
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| March 31, |
| Entire Comparable |
| March 31, |
| March 31, |
| Entire Comparable |
| March 31, |
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| 2015 |
| Period |
| 2015 |
| 2014 |
| Period |
| 2014 |
Consolidated |
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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 |
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| Actual |
| Adjustment |
| Same Station |
| Actual |
| Adjustment |
| Same Station |
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| Three Months |
| For Dispositions |
| Three Months |
| Three Months |
| For Dispositions |
| Three Months |
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| Ended |
| Not Included in |
| Ended |
| Ended |
| Not Included in |
| Ended |
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| March 31, |
| Entire Comparable |
| March 31, |
| March 31, |
| Entire Comparable |
| March 31, |
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| 2015 |
| Period |
| 2015 |
| 2014 |
| Period |
| 2014 |
Radio Segment |
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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 |
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| Actual |
| Adjustment |
| Same Station |
| Actual |
| Adjustment |
| Same Station |
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| Three Months |
| For Dispositions |
| Three Months |
| Three Months |
| For Dispositions |
| Three Months |
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| Ended |
| Not Included in |
| Ended |
| Ended |
| Not Included in |
| Ended |
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| March 31, |
| Entire Comparable |
| March 31, |
| March 31, |
| Entire Comparable |
| March 31, |
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| 2015 |
| Period |
| 2015 |
| 2014 |
| Period |
| 2014 |
Television Segment |
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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 |
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CONTACT: Samuel D. Bush, 313/886-7070
