Attached files
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| 8-K - FORM 8-K - SAGA COMMUNICATIONS INC | v466047_8k.htm |
Exhibit 99.1
Saga Communications, Inc. Reports 1st Quarter 2017 Results
Net Revenue of $31.4 Million and Declares Quarterly Cash Dividend of $0.30 per Share
GROSSE POINTE FARMS, Mich., May 4, 2017 /PRNewswire/ -- Saga Communications, Inc. (NYSE MKT: SGA) today announced that its Board of Directors declared a quarterly cash dividend of $0.30 per share. The dividend will be paid on June 9, 2017 to shareholders of record on May 22, 2017. The aggregate amount of the payment to be made in connection with the quarterly dividend will be approximately $1.8 million. The quarterly cash dividend will be funded by cash on the Company's balance sheet.
The Company also reported that primarily due to a reduction in political revenue of $1.3 million from the same period last year net revenue decreased 4.1% ($1.3 million) to $31.4 million for the quarter ended March 31, 2017. Station operating expense increased 1.5% to $25.1 million (station operating expense includes depreciation and amortization attributable to the stations). Operating Income decreased $1.9 million to $3.5 million. Free cash flow for the quarter was $3.2 million.
Capital expenditures were $1.4 million in the first quarter compared to $1.0 million for the same period last year. The Company expects to spend approximately $5.0 million to $5.5 million for capital expenditures during 2017.
Saga's 2017 1st Quarter call will be on Thursday, May 4, 2017 at 11:00 a.m. EST. The dial-in number for the call is (612) 288-0337. 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 May 4, 2017 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 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 26 markets, including 68 FM and 32 AM radio stations, 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, 2017 and 2016 | ||||
(amounts in 000's except per share data) | ||||
(Unaudited) | ||||
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| Three Months Ended | |
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| March 31, | |
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| 2017 | 2016 |
Operating Results |
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Net operating revenue |
| $ 31,410 | $ 32,745 | |
Station operating expense |
| 25,052 | 24,685 | |
Corporate general and administrative |
| 2,863 | 2,717 | |
Other operating (income) expense, net |
| 10 | - | |
Operating income |
| 3,485 | 5,343 | |
Interest expense |
| 217 | 189 | |
Income before income tax expense |
| 3,268 | 5,154 | |
Income tax expense |
| 1,330 | 2,130 | |
Net income |
| $ 1,938 | $ 3,024 | |
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Earnings Per Share |
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| Basic |
| $ 0.32 | $ 0.52 |
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| Diluted |
| $ 0.32 | $ 0.52 |
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Weighted average common shares |
| 6,002 | 5,751 | |
Weighted average common and common |
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| equivalent shares |
| 6,014 | 5,759 |
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Free Cash Flow |
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Net income |
| $ 1,938 | $ 3,024 | |
Plus: Depreciation and amortization: |
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| Station |
| 1,674 | 1,667 |
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| Corporate |
| 71 | 69 |
Deferred tax provision |
| 425 | 575 | |
Non-cash compensation |
| 558 | 528 | |
Other operating (income) expense, net |
| 10 | - | |
Less: Capital expenditures |
| (1,439) | (1,010) | |
Free cash flow |
| $ 3,237 | $ 4,853 | |
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| March 31, | |
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| 2017 | 2016 |
Balance Sheet Data |
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| Working capital |
| $ 39,451 | $ 23,906 |
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| Net fixed assets |
| $ 56,319 | $ 57,924 |
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| Net intangible assets and other assets |
| $ 110,731 | $ 110,795 |
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| Total assets |
| $ 221,567 | $ 209,727 |
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| Long-term debt |
| $ 36,365 | $ 36,365 |
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| Stockholders' equity |
| $ 135,983 | $ 125,162 |
Saga Communications, Inc. |
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Selected Supplemental Financial Data |
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For the Three Months Ended |
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March 31, 2017 and 2016 |
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(amounts in 000's except per share data) |
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(Unaudited) |
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| Actual |
| Same Station (1) |
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| Three Months Ended |
| Three Months Ended |
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| March 31, |
| March 31, |
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| 2017 | 2016 |
| 2017 | 2016 |
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Consolidated |
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Net operating revenue | $ 31,410 | $ 32,745 |
| $ 31,363 | $ 32,745 |
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Station operating expense | 25,052 | 24,685 |
| 24,996 | 24,685 |
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Corporate general and administrative | 2,863 | 2,717 |
| 2,863 | 2,717 |
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Other operating (income) expense, net | 10 | - |
| 10 | - |
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Operating income | 3,485 | 5,343 |
| 3,494 | 5,343 |
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Interest expense | 217 | 189 |
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Income before income tax expense | 3,268 | 5,154 |
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Income tax expense | 1,330 | 2,130 |
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Net income | $ 1,938 | $ 3,024 |
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Earnings per share: |
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Basic | $ 0.32 | $ 0.52 |
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Diluted | $ 0.32 | $ 0.52 |
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| Actual |
| Same Station (1) |
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| Three Months Ended |
| Three Months Ended |
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| March 31, |
| March 31, |
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| 2017 | 2016 |
| 2017 | 2016 |
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Radio Segment |
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Net operating revenue | $ 26,155 | $ 27,464 |
| $ 26,108 | $ 27,464 |
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Station operating expense | 21,340 | 21,140 |
| 21,284 | 21,140 |
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Other operating (income) expense, net | (21) | (3) |
| (21) | (3) |
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Operating income | $ 4,836 | $ 6,327 |
| $ 4,845 | $ 6,327 |
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| Actual |
| Same Station (1) |
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| Three Months Ended |
| Three Months Ended |
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| March 31, |
| March 31, |
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| 2017 | 2016 |
| 2017 | 2016 |
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Television Segment |
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Net operating revenue | $ 5,255 | $ 5,281 |
| $ 5,255 | $ 5,281 |
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Station operating expense | 3,712 | 3,545 |
| 3,712 | 3,545 |
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Other operating (income) expense, net | 31 | 3 |
| 31 | 3 |
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Operating income | $ 1,512 | $ 1,733 |
| $ 1,512 | $ 1,733 |
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| Actual |
| Same Station (1) |
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| Three Months Ended |
| Three Months Ended |
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| March 31, |
| March 31, |
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| 2017 | 2016 |
| 2017 | 2016 |
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Depreciation and amortization |
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| by segment |
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Radio Segment | $ 1,358 | $ 1,346 |
| $ 1,358 | $ 1,346 |
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Television Segment | 316 | 321 |
| 316 | 321 |
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Corporate and Other | 71 | 69 |
| 71 | 69 |
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| $ 1,745 | $ 1,736 |
| $ 1,745 | $ 1,736 |
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(1) | Same station includes only the results of stations we owned and operated for the entire comparable period. | |||||||
Saga Communications, Inc. | ||||||||
Selected Supplemental Financial Data | ||||||||
March 31, 2017 | ||||||||
(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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| 2016 |
| 2016 |
| 2017 |
| 2017 |
Trailing 12 Month Consolidated Earnings Before Interest, |
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Taxes, Depreciation and Amortization ("EBITDA") (1) |
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Net income | $ 18,186 |
| $ 3,024 |
| $ 1,938 |
| $ 17,100 | |
Exclusions: |
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| Gain (loss) on sale of assets | 1,393 |
| - |
| (10) |
| 1,383 |
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| Other | 298 |
| 70 |
| 59 |
| 287 |
Total exclusions | 1,691 |
| 70 |
| 49 |
| 1,670 | |
Consolidated adjusted net income (1) | 16,495 |
| 2,954 |
| 1,889 |
| 15,430 | |
Plus: Interest expense | 776 |
| 189 |
| 217 |
| 804 | |
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| Income tax expense | 12,500 |
| 2,130 |
| 1,330 |
| 11,700 |
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| Depreciation & amortization expense | 7,263 |
| 1,736 |
| 1,745 |
| 7,272 |
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| Amortization of television syndicated programming contracts | 628 |
| 158 |
| 158 |
| 628 |
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| Non-cash stock based compensation expense | 2,101 |
| 528 |
| 558 |
| 2,131 |
Less: Cash television programming payments | (625) |
| (158) |
| (158) |
| (625) | |
Trailing twelve month consolidated EBITDA (1) | $ 39,138 |
| $ 7,537 |
| $ 5,739 |
| $ 37,340 | |
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Total long-term debt, including current maturities |
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| $ 36,365 | |
Divided by trailing twelve month consolidated EBITDA (1) |
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| 37,340 | |
Consolidated Net Leverage Ratio (1) |
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| 0.97 | |
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(1) | As defined in the Company's credit facility. |
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| Saga Communications, Inc. | ||||||||||||
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| Selected Financial Data Non-GAAP Disclosures | ||||||||||||
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| For the Three Months Ended | ||||||||||||
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| March 31, 2017 and 2016 | ||||||||||||
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| (amounts in 000's) | ||||||||||||
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| (Unaudited) | ||||||||||||
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Reconciliation of Actual Information to Same Station Operating Income | |||||||||||||
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| Adjustment |
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| Adjustment |
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| Actual |
| For Acquisitions |
| Same Station |
| Actual |
| For Acquisitions |
| Same Station |
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| Three Months |
| and Dispositions |
| Three Months |
| Three Months |
| and 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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| 2017 |
| Period |
| 2017 |
| 2016 |
| Period |
| 2016 |
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Consolidated |
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Net operating revenue | $ 31,410 |
| $ (47) |
| $ 31,363 |
| $ 32,745 |
| $ - |
| $ 32,745 |
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Station operating expense | 25,052 |
| (56) |
| 24,996 |
| 24,685 |
| - |
| 24,685 |
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Corporate general and administrative | 2,863 |
| - |
| 2,863 |
| 2,717 |
| - |
| 2,717 |
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Other operating (income) expense, net | 10 |
| - |
| 10 |
| - |
| - |
| - |
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Operating income | $ 3,485 |
| $ 9 |
| $ 3,494 |
| $ 5,343 |
| $ - |
| $ 5,343 |
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Depreciation and amortization | $ 1,745 |
| $ - |
| $ 1,745 |
| $ 1,736 |
| $ - |
| $ 1,736 |
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| Adjustment |
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| Adjustment |
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| Actual |
| For Acquisitions |
| Same Station |
| Actual |
| For Acquisitions |
| Same Station |
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| Three Months |
| and Dispositions |
| Three Months |
| Three Months |
| and 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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| 2017 |
| Period |
| 2017 |
| 2016 |
| Period |
| 2016 |
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Radio Segment |
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Net operating revenue | $ 26,155 |
| $ (47) |
| $ 26,108 |
| $ 27,464 |
| $ - |
| $ 27,464 |
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Station operating expense | 21,340 |
| (56) |
| 21,284 |
| 21,140 |
| - |
| 21,140 |
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Other operating (income) expense, net | (21) |
| - |
| (21) |
| (3) |
| - |
| (3) |
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Operating income | $ 4,836 |
| $ 9 |
| $ 4,845 |
| $ 6,327 |
| $ - |
| $ 6,327 |
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Depreciation and amortization | $ 1,358 |
| $ - |
| $ 1,358 |
| $ 1,346 |
| $ - |
| $ 1,346 |
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| Adjustment |
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| Adjustment |
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| Actual |
| For Acquisitions |
| Same Station |
| Actual |
| For Acquisitions |
| Same Station |
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| Three Months |
| and Dispositions |
| Three Months |
| Three Months |
| and 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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| 2017 |
| Period |
| 2017 |
| 2016 |
| Period |
| 2016 |
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Television Segment |
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Net operating revenue | $ 5,255 |
| $ - |
| $ 5,255 |
| $ 5,281 |
| $ - |
| $ 5,281 |
| |
Station operating expense | 3,712 |
| - |
| 3,712 |
| 3,545 |
| - |
| 3,545 |
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Other operating (income) expense, net | 31 |
| - |
| 31 |
| 3 |
| - |
| 3 |
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Operating income | $ 1,512 |
| $ - |
| $ 1,512 |
| $ 1,733 |
| $ - |
| $ 1,733 |
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Depreciation and amortization | $ 316 |
| $ - |
| $ 316 |
| $ 321 |
| $ - |
| $ 321 |
| |
CONTACT: Samuel D. Bush, 313/886-7070