Saga Communications, Inc. Reports 1st Quarter 2015 Results

Saga Communications, Inc. Reports 1st Quarter 2015 Results

Free Cash Flow Increased 5.2%

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.

Selected Consolidated Financial Data

For The Three Months Ended

March 31, 2015 and 2014

(amounts in 000's except per share data)

(Unaudited)


Three Months Ended

March 31,
---------

2015 2014
---- ----

Operating Results

Net operating revenue $29,061 $29,423

Station operating
expense 22,765 22,947

Corporate general and
administrative 2,482 2,153

Operating income 3,814 4,323

Interest expense 241 272

Other (income) expense,
net (8) (15)

Income tax expense 1,450 1,627
----- -----

Net income $2,131 $2,439
====== ======

Earnings per share

Basic $0.37 $0.43
-----

Diluted $0.36 $0.42
-----

Weighted average common
shares 5,710 5,690

Weighted average common
and common

equivalent shares 5,762 5,757


Free Cash Flow

Net income $2,131 $2,439

Plus: Depreciation and
amortization:

Station 1,521 1,575

Corporate 68 70

Deferred tax provision 360 610

Non-cash compensation 462 188

Other (income), net (8) (15)

Less: Capital
expenditures (950) (1,459)
----

Free cash flow $3,584 $3,408
====== ======


March 31,
---------

2015 2014
---- ----

Balance Sheet Data

Working capital $33,262 $32,398

Net fixed assets $54,557 $56,594

Net intangible assets and other
assets $93,477 $94,960

Total assets $195,548 $197,156

Long-term debt $36,078 $46,078

Stockholders' equity $116,897 $112,815






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)


Actual Same Station

Three Months Ended Three Months Ended

March 31, March 31,

2015 2014 2015 2014
---- ---- ---- ----

Consolidated

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

Other (income) expense, net (8) (15)

Income tax expense 1,450 1,627

Net income $2,131 $2,439
====== ======

Earnings per share:

Basic $0.37 $0.43
===== =====

Diluted $0.36 $0.42
===== =====


Actual Same Station

Three Months Ended Three Months Ended

March 31, March 31,

2015 2014 2015 2014
---- ---- ---- ----

Radio Segment

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
====== ====== ====== ======



Actual Same Station

Three Months Ended Three Months Ended

March 31, March 31,

2015 2014 2015 2014
---- ---- ---- ----

Television Segment

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
====== ====== ====== ======



Actual Same Station

Three Months Ended Three Months Ended

March 31, March 31,

2015 2014 2015 2014
---- ---- ---- ----

Depreciation and amortization

by segment

Radio Segment $1,174 $1,230 $1,174 $1,198

Television Segment 347 345 347 345

Corporate and Other 68 70 68 70

$1,589 $1,645 $1,589 $1,613
====== ====== ====== ======






Saga Communications, Inc.

Selected Supplemental Financial Data

March 31, 2015

(amounts in 000's except ratios)

(Unaudited)




Less: Plus: Trailing

12 Mos Ended 3 Mos Ended 3 Mos Ended 12 Mos Ended

December 31, March 31, March 31, March 31,

2014 2014 2015 2015
---- ---- ---- ----

Trailing 12 Month Consolidated Earnings Before Interest

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

Net income $14,904 $2,439 $2,131 $14,596

Exclusions:

Gain on sale of assets 1,281 15 8 1,274

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

Other 213 34 21 200

0

Total exclusions (442) 49 29 (462)
---- --- --- ----


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)


Trailing twelve month consolidated EBITDA (1) $33,998 $6,122 $5,847 $33,723
======= ====== ====== =======


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

Divided by trailing twelve month consolidated EBITDA (1) 33,723

Leverage ratio 1.1
===




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






Saga Communications, Inc.

Selected Financial Data Non-GAAP Disclosures

For the Three Months Ended

March 31, 2015 and 2014

(amounts in 000's)

(Unaudited)



Reconciliation of Actual (historical) information to Same Station Operating Income
----------------------------------------------------------------------------------



Actual Adjustment Same Station Actual Adjustment Same Station

Three Months For Dispositions Three Months Three Months For Dispositions Three Months

Ended Not Included in Ended Ended Not Included in Ended

March 31, Entire Comparable March 31, March 31, Entire Comparable March 31,

2015 Period 2015 2014 Period 2014
---- ------ ---- ---- ------ ----

Consolidated

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
====== ======================= ====== ====== === ======




Actual Adjustment Same Station Actual Adjustment Same Station

Three Months For Dispositions Three Months Three Months For Dispositions Three Months

Ended Not Included in Ended Ended Not Included in Ended

March 31, Entire Comparable March 31, March 31, Entire Comparable March 31,

2015 Period 2015 2014 Period 2014
---- ------ ---- ---- ------ ----

Radio Segment

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
====== ======================= ====== ====== === ======




Actual Adjustment Same Station Actual Adjustment Same Station

Three Months For Dispositions Three Months Three Months For Dispositions Three Months

Ended Not Included in Ended Ended Not Included in Ended

March 31, Entire Comparable March 31, March 31, Entire Comparable March 31,

2015 Period 2015 2014 Period 2014
---- ------ ---- ---- ------ ----

Television Segment

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
====== ======================= ====== ====== ======================= ======



SOURCE Saga Communications, Inc.

Saga Communications, Inc.

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

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


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