Saga Communications, Inc. Reports 2nd Quarter 2015 Results

Saga Communications, Inc. Reports 2nd Quarter 2015 Results

Net Revenue Increased 1.6%

GROSSE POINTE FARMS, Mich., Aug. 4, 2015 /PRNewswire/ -- Saga Communications, Inc. (NYSE MKT: SGA) today reported net revenue increased 1.6% to $34.4 million for the quarter ended June 30, 2015. Free cash flow decreased $281 thousand to $5.7 million. Station operating expense increased $812 thousand to $24.3 million (station operating expense includes depreciation and amortization attributable to the stations). Operating income was $7.5 million. Net income for the period was $4.5 million ($0.77 per fully diluted share).

Net revenue increased 0.3% to $63.4 million for the year ended June 30, 2015. Free cash flow decreased $105 thousand to $9.2 million. Station operating expense increased $630 thousand to $47.1 million (station operating expense includes depreciation and amortization attributable to the stations). Operating income was $11.3 million. Net income for the six month period was $6.6 million ($1.13 per fully diluted share).

Capital expenditures were $1.3 million in the 2nd quarter compared to $1.5 million for the same period last year. The Company currently expects to spend approximately $5.0 million to $5.5 million for capital expenditures during 2015.

Subsequent to the end of the 2(nd) quarter the Company closed on it purchase of 3 FM and 2 AM radio stations serving the Harrisonburg, VA radio market. The purchase price was $9.6 million. The company anticipates closing on 1 additional FM serving the market at the end of August, 2015 resulting in the Company owning 4 FM's and 2 AM's in the market.

Saga's 2015 2nd Quarter conference call will be on Tuesday, August 4, 2015 at 11:00 a.m. EDT. The dial-in number for the call is (612) 234-9959. 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 August 4, 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 26 markets, including 65 FM and 32 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 and Six Months Ended

June 30, 2015 and 2014

(amounts in 000's except per share data)

(Unaudited)


Three Months Ended Six Months Ended

June 30, June 30,

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

Operating Results

Net operating revenue $34,358 $33,831 $63,419 $63,254

Station operating expense 24,311 23,499 47,076 46,446

Corporate general and administrative 2,583 2,120 5,065 4,273

Other operating expense, net 14 - 14 -

Operating income $7,450 $8,212 $11,264 $12,535

Interest expense 244 272 485 544

Other income, net (409) (30) (417) (45)

Income tax expense 3,141 3,193 4,591 4,820
----- ----- ----- -----

Net income $4,474 $4,777 $6,605 $7,216
====== ====== ====== ======


Earnings Per Share

Basic $0.77 $0.83 $1.14 $1.26
===== ===== =====

Diluted $0.77 $0.82 $1.13 $1.24
===== ===== =====


Weighted average common shares 5,712 5,699 5,711 5,695

Weighted average common and common

equivalent shares 5,757 5,754 5,759 5,755


Free Cash Flow

Net income $4,474 $4,777 $6,605 $7,216

Plus: Depreciation and amortization:

Station 1,529 1,582 3,050 3,157

Corporate 77 58 145 128

Deferred tax provision 906 810 1,266 1,420

Non-cash compensation 365 191 827 379

Other operating expense, net 14 - 14 -

Other income, net (409) (30) (417) (45)

Less: Capital expenditures (1,304) (1,455) (2,254) (2,914)
------

Free cash flow $5,652 $5,933 $9,236 $9,341
====== ====== ====== ======


Balance Sheet Data

Working capital $38,173 $33,182

Net fixed assets $53,900 $56,304

Net intangible assets and other assets $93,620 $95,214

Total assets $200,299 $201,988

Long-term debt (including current

portion of $0 and $5,000, respectively) $36,078 $46,078

Stockholders' equity $120,476 $117,783







Saga Communications, Inc.

Selected Supplemental Financial Data

For the Three Months Ended

June 30, 2015 and 2014

(amounts in 000's except per share data)

(Unaudited)


Actual Same Station

Three Months Ended Three Months Ended

June 30, June 30,

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

Consolidated

Net operating revenue $34,358 $33,831 $34,358 $33,355

Station operating
expense 24,311 23,499 24,264 22,907

Corporate general and
administrative 2,583 2,120 2,583 2,120

Other operating
expense, net 14 - 14 -

Operating income $7,450 $8,212 $7,497 $8,328

Interest expense 244 272

Other income, net (409) (30)

Income tax expense 3,141 3,193

Net income $4,474 $4,777
====== ======

Earnings per share:

Basic $0.77 $0.83
===== =====

Diluted $0.77 $0.82
===== =====


Actual Same Station

Three Months Ended Three Months Ended

June 30, June 30,

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

Radio Segment

Net operating revenue $29,017 $28,851 $29,017 $28,375

Station operating
expense 20,819 20,200 20,772 19,608

Other operating
expense, net 14 - 14 -

Operating income $8,184 $8,651 $8,231 $8,767
====== ====== ====== ======



Actual Same Station

Three Months Ended Three Months Ended

June 30, June 30,

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

Television Segment

Net operating revenue $5,341 $4,980 $5,341 $4,980

Station operating
expense 3,492 3,299 3,492 3,299

Other operating
expense, net - - - -

Operating income $1,849 $1,681 $1,849 $1,681
====== ====== ====== ======



Actual Same Station

Three Months Ended Three Months Ended

June 30, June 30,

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

Depreciation and amortization

by segment

Radio Segment $1,207 $1,236 $1,207 $1,225

Television Segment 322 346 322 346

Corporate and Other 77 58 77 58

$1,606 $1,640 $1,606 $1,629
====== ====== ====== ======






Saga Communications, Inc.

Selected Supplemental Financial Data

For the Six Months Ended

June 30, 2015 and 2014

(amounts in 000's except per share data)

(Unaudited)


Actual Same Station

Six Months Ended Six Months Ended

June 30, June 30,

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

Consolidated

Net operating revenue $63,419 $63,254 $63,419 $62,223

Station operating
expense 47,076 46,446 47,029 45,228

Corporate general and
administrative 5,065 4,273 5,065 4,273

Other operating
expense, net 14 - 14 -

Operating income $11,264 $12,535 $11,311 $12,722

Interest expense 485 544

Other income, net (417) (45)

Income tax expense 4,591 4,820

Net income $6,605 $7,216
====== ======

Earnings per share:

Basic $1.14 $1.26
===== =====

Diluted $1.13 $1.24
===== =====


Actual Same Station

Six Months Ended Six Months Ended

June 30, June 30,

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

Radio Segment

Net operating revenue $53,293 $53,776 $53,293 $52,745

Station operating
expense 40,241 39,939 40,194 38,721

Other operating
expense, net 14 - 14 -

Operating income $13,038 $13,837 $13,085 $14,024
======= ======= ======= =======



Actual Same Station

Six Months Ended Six Months Ended

June 30, June 30,

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

Television Segment

Net operating revenue $10,126 $9,478 $10,126 $9,478

Station operating
expense 6,835 6,507 6,835 6,507

Other operating
expense, net - - - -

Operating income $3,291 $2,971 $3,291 $2,971
====== ====== ====== ======



Actual Same Station

Six Months Ended Six Months Ended

June 30, June 30,

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

Depreciation and amortization

by segment

Radio Segment $2,381 $2,466 $2,381 $2,423

Television Segment 669 691 669 691

Corporate and Other 145 128 145 128

$3,195 $3,285 $3,195 $3,242
====== ====== ====== ======








Saga Communications, Inc.

Selected Supplemental Financial Data

June 30, 2015

(amounts in 000's except ratios)

(Unaudited)




Less: Plus: Trailing

12 Mos Ended 6 Mos Ended 6 Mos Ended 12 Mos Ended

December 31, June 30, June 30, June 30,

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

Trailing 12 Month Consolidated Earnings Before Interest

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

Net income $14,904 $7,216 $6,605 $14,293

Exclusions:

Gain (loss) on sale of assets 1,281 45 (14) 1,222

Gain on insurance claim - - 417 417

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

Other 213 168 102 147

Total exclusions (442) 213 505 (150)
---- --- --- ----


Consolidated adjusted net income (1) 15,346 7,003 6,100 14,443

Plus: Interest expense 1,064 544 485 1,005

Income tax expense 10,050 4,820 4,591 9,821

Depreciation & amortization expense 6,702 3,285 3,195 6,612

Amortization of television syndicated programming contracts 637 308 321 650

Non-cash stock based compensation expense 826 379 827 1,274

Less: Cash television programming payments (627) (309) (319) (637)


Trailing twelve month consolidated EBITDA (1) $33,998 $16,030 $15,200 $33,168
======= ======= ======= =======


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

Divided by trailing twelve month consolidated EBITDA (1) 33,168

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

June 30, 2015 and 2014

(amounts in 000's)

(Unaudited)



Reconciliation of As-Reported (historical) information to Same Station Operating Income (Loss)
---------------------------------------------------------------------------------------------


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

June 30, Entire Comparable June 30, June 30, Entire Comparable June 30,

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

Consolidated

Net operating revenue $34,358 $ - $34,358 $33,831 $(476) $33,355

Station operating expense 24,311 (47) 24,264 23,499 (592) 22,907

Corporate general and
administrative 2,583 - 2,583 2,120 - 2,120

Other operating expense, net 14 - 14 - - -

Operating income $7,450 $47 $7,497 $8,212 $116 $8,328
====== === ====== ====== ==== ======



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

June 30, Entire Comparable June 30, June 30, Entire Comparable June 30,

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

Radio Segment

Net operating revenue $29,017 $ - $29,017 $28,851 $(476) $28,375

Station operating expense 20,819 (47) 20,772 20,200 (592) 19,608

Other operating expense, net 14 - 14 - - -

Operating income $8,184 $47 $8,231 $8,651 $116 $8,767
====== === ====== ====== ==== ======



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

June 30, Entire Comparable June 30, June 30, Entire Comparable June 30,

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

Television Segment

Net operating revenue $5,341 $ - $5,341 $4,980 $ - $4,980

Station operating expense 3,492 - 3,492 3,299 - 3,299

Other operating expense, net - - - - - -

Operating income $1,849 $ - $1,849 $1,681 $ - $1,681
====== ======================= ====== ====== ======================= ======







Saga Communications, Inc.

Selected Financial Data Non-GAAP Disclosures

For the Six Months Ended

June 30, 2015 and 2014

(amounts in 000's)

(Unaudited)



Reconciliation of As-Reported (historical) information to Same Station Operating Income (Loss)
---------------------------------------------------------------------------------------------


Adjustment Adjustment

Actual For Acquisitions Same Station Actual For Acquisitions Same Station

Six Months and Dispositions Six Months Six Months and Dispositions Six Months

Ended Not Included in Ended Ended Not Included in Ended

June 30, Entire Comparable June 30, June 30, Entire Comparable June 30,

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

Consolidated

Net operating revenue $63,419 $ - $63,419 $63,254 $(1,031) $62,223

Station operating expense 47,076 (47) 47,029 46,446 (1,218) 45,228

Corporate general and
administrative 5,065 - 5,065 4,273 - 4,273

Other operating expense, net 14 - 14 - - -

Operating income $11,264 $47 $11,311 $12,535 $187 $12,722
======= === ======= ======= ==== =======



Adjustment Adjustment

Actual For Acquisitions Same Station Actual For Acquisitions Same Station

Six Months and Dispositions Six Months Six Months and Dispositions Six Months

Ended Not Included in Ended Ended Not Included in Ended

June 30, Entire Comparable June 30, June 30, Entire Comparable June 30,

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

Radio Segment

Net operating revenue $53,293 $ - $53,293 $53,776 $(1,031) $52,745

Station operating expense 40,241 (47) 40,194 39,939 (1,218) 38,721

Other operating expense, net 14 - 14 - - -

Operating income $13,038 $47 $13,085 $13,837 $187 $14,024
======= === ======= ======= ==== =======



Adjustment Adjustment

Actual For Acquisitions Same Station Actual For Acquisitions Same Station

Six Months and Dispositions Six Months Six Months and Dispositions Six Months

Ended Not Included in Ended Ended Not Included in Ended

June 30, Entire Comparable June 30, June 30, Entire Comparable June 30,

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

Television Segment

Net operating revenue $10,126 $ - $10,126 $9,478 $ - $9,478

Station operating expense 6,835 - 6,835 6,507 - 6,507

Other operating expense, net - - - - - -

Operating income $3,291 $ - $3,291 $2,971 $ - $2,971
====== ======================= ====== ====== ======================= ======







SOURCE Saga Communications, Inc.

Saga Communications, Inc.

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

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


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