Saga Communications, Inc. Reports 4th Quarter and Year End 2014 Results

Saga Communications, Inc. Reports 4th Quarter and Year End 2014 Results

Net Operating Revenue Increased 3.5%

GROSSE POINTE FARMS, Mich., March 10, 2015 /PRNewswire/ -- Saga Communications, Inc. (NYSE MKT: SGA) today reported net operating revenue increased 7.7% to $36.4 million for the quarter ended December 31, 2014 compared to $33.8 million for the same period last year. Station operating expense was $25.6 million (station operating expense includes depreciation and amortization attributable to the stations) compared to $23.8 million for the same period last year. The $1.8 million increase was primarily due to the expense attributable to agreements entered into by the Company in the fourth quarter of 2014 to license historic data from Nielson Audio, Inc. in selected markets in order to enhance the benefit of licenses to receive Nielson reports and services during future periods in those markets which were also entered into in the fourth quarter. Operating income from continuing operations was $7.7 million. Net income for the period was $4.4 million ($0.76 per fully diluted share) and free cash flow was $6.7 million compared to $5.6 million for the same period last year.

Net operating revenue for the year ended December 31, 2014 increased 3.5% to $134.0 million compared to $129.5 million for the same period last year. Operating income from continuing operations was $26.0 million. Net income for the period was $14.9 million ($2.55 per fully diluted share) and free cash flow was $21.0 million. Station operating expense was $98.4 million (station operating expense includes depreciation and amortization attributable to the stations).

The Company recognized a $1.9 million impairment charge to intangible assets during the quarter ended December 31, 2014 as a result of our annual impairment testing.

Capital expenditures were $1.7 million in the 4th quarter which was approximately the same as 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 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 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.

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's 2014 4th Quarter and Year End conference call will be on Tuesday, March 10, 2015 at 11:00 a.m. EDT. The dial-in number for all calls is (612) 234-9960. 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 March 10, 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.

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 Communications, Inc.

Selected Consolidated Financial Data

For The Three and Twelve Months Ended

December 31, 2014 and 2013

(amounts in 000's except per share data)

(Unaudited)


Three Months Ended Twelve Months Ended

December, 31 December, 31

2014 2013 2014 2013
---- ---- ---- ----

Operating Results

Net operating revenue $36,371 $33,760 $133,998 $129,478

Station operating expense 25,612 23,798 98,424 92,977

Corporate general and administrative 2,321 2,191 8,901 8,172

Other operating (income) expense (1,210) - (1,210) -

Impairment of intangible assets 1,936 2,033 1,936 2,033

Operating income from continuing operations 7,712 5,738 25,947 26,296

Interest expense 252 282 1,064 1,305

Other (income) expense, net (33) 2 (71) (51)
--- --- --- ---

Income from continuing operations before income tax 7,493 5,454 24,954 25,042

Income tax expense 3,050 2,230 10,050 9,992
----- ----- ------ -----

Income from continuing operations, net of income taxes 4,443 3,224 14,904 15,050

Income from discontinued operations, net of income taxes - - - 223
--- --- --- ---

Net income $4,443 $3,224 $14,904 $15,273
====== ====== ======= =======

Basic earnings per share:

From continuing operations $0.77 $0.56 $2.57 $2.62

From discontinued operations - - - 0.04
--- --- ---

Earnings per share $0.77 $0.56 $2.57 $2.66
===== ===== =====

Diluted earnings per share:

From continuing operations $0.76 $0.56 $2.55 $2.60

From discontinued operations - - - 0.04
--- --- ---

Earnings per share $0.76 $0.56 $2.55 $2.64
===== ===== =====

Weighted average common shares 5,709 5,686 5,700 5,681

Weighted average common and common

equivalent shares 5,757 5,751 5,753 5,745


Free Cash Flow

Net income $4,443 $3,224 $14,904 $15,273

Plus: Depreciation and amortization:

Station 1,682 1,725 6,434 6,540

Corporate 63 58 268 228

Deferred tax provision 1,255 140 3,385 2,805

Non-cash compensation 254 119 826 135

Gain on disposal of television station - - - (223)

Other operating (income) expense (1,210) - (1,210) -

Impairment of intangible assets 1,936 2,033 1,936 2,033

Other (income) expense, net (33) 2 (71) (51)

Less: Capital expenditures (1,723) (1,680) (5,524) (5,152)

Free cash flow $6,667 $5,621 $20,948 $21,588
====== ====== ======= =======


Balance Sheet Data

Working capital $30,554 $28,079

Net fixed assets $55,187 $56,337

Net intangible assets and other assets $93,270 $94,806

Total assets $192,044 $193,224

Long-term debt (including current

portion of $0 and $1,078, respectively) $36,078 $46,078

Stockholders' equity $115,245 $109,701



Saga Communications, Inc.

Selected Supplemental Financial Data

For the Three and Twelve Months Ended

December 31, 2014 and 2013

(amounts in 000's)

(Unaudited)


Corporate

Radio Television and Other Consolidated
----- ---------- --------- ------------

Three Months Ended December 31, 2014:

Net operating revenue $30,451 $5,920 $ - $36,371

Station operating expense 22,146 3,466 - 25,612

Corporate general and administrative - - 2,321 2,321

Other operating (income) expense (1,210) - - (1,210)

Impairment of intangible assets 1,936 - - 1,936

Operating income (loss) from continuing operations $7,579 $2,454 ($2,321) $7,712
====== ====== ======= ======

Depreciation and amortization $1,312 $370 $63 $1,745
====== ==== === ======


Corporate

Radio Television and Other Consolidated
----- ---------- --------- ------------

Three Months Ended December 31, 2013:

Net operating revenue $28,578 $5,182 $ - $33,760

Station operating expense 20,372 3,426 - 23,798

Corporate general and administrative - - 2,191 2,191

Other operating (income) expense - - - -

Impairment of intangible assets 2,033 - - 2,033

Operating income (loss) from continuing operations $6,173 $1,756 ($2,191) $5,738
====== ====== ======= ======

Depreciation and amortization $1,358 $367 $58 $1,783
====== ==== === ======


Corporate

Radio Television and Other Consolidated
----- ---------- --------- ------------

Twelve Months Ended December 31, 2014:

Net operating revenue $113,627 $20,371 $ - $133,998

Station operating expense 85,167 13,257 - 98,424

Corporate general and administrative - - 8,901 8,901

Other operating (income) expense (1,210) - - (1,210)

Impairment of intangible assets 1,936 - - 1,936

Operating income (loss) from continuing operations $27,734 $7,114 ($8,901) $25,947
======= ====== ======= =======

Depreciation and amortization $5,023 $1,411 $268 $6,702
====== ====== ==== ======


Corporate

Radio Television and Other Consolidated
----- ---------- --------- ------------

Twelve Months Ended December 31, 2013:

Net operating revenue $109,818 $19,660 $ - $129,478

Station operating expense 79,933 13,044 - 92,977

Corporate general and administrative - - 8,172 8,172

Other operating (income) expense - - - -

Impairment of intangible assets 2,033 - - 2,033

Operating income (loss) from continuing operations $27,852 $6,616 ($8,172) $26,296
======= ====== ======= =======

Depreciation and amortization $5,119 $1,421 $228 $6,768
====== ====== ==== ======



Saga Communications, Inc.

Selected Supplemental Financial Data

December 31, 2014

(amounts in 000's except ratios)

(Unaudited)




Trailing

Twelve Months Ended

December 31,

2014 2013
---- ----

Trailing 12 Month Consolidated Earnings Before Interest

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

Net income $14,904 $15,273

Exclusions:

Gain on sale of assets 1,281 126

Impairment of intangible assets (1,936) (2,033)

Gain on sale of television station - 223

Other 213 (39)

Total exclusions (442) (1,723)
---- ------


Consolidated adjusted net income
(1) 15,346 16,996

Plus: Interest expense 1,064 1,305

Income tax expense 10,050 9,992

Depreciation & amortization
expense 6,702 6,768

Amortization of television
syndicated programming contracts 637 637

Non-cash stock based compensation
expense 826 135

Less: Cash television programming
payments (627) (628)

Trailing twelve month consolidated
EBITDA (1) $33,998 $35,205
======= =======


Total long-term debt, including
current maturities $36,078 $46,078

Divided by trailing twelve month
consolidated EBITDA (1) 33,998 35,205

Leverage ratio 1.1 1.3
=== ===



(1) As defined in the Company's credit
facility.


SOURCE Saga Communications, Inc.

Saga Communications, Inc.

CONTACT: Samuel D. Bush, 313/886-7070

Web Site: http://www.sagacom.com


-------
Profile: intent