Core Viewpoint - Saga Communications, Inc. has repurchased 184,215 shares of its common stock for approximately $2.1 million, reflecting a commitment to shareholder value and confidence in its long-term strategy [1][2]. Group 1: Stock Repurchase Details - The repurchased shares were acquired at a price of $11.50 per share, representing about 2.8% of the company's outstanding common stock, which totals 6,556,621 shares as of December 11, 2025 [1]. - After the transaction, the repurchased shares were returned to treasury and are no longer outstanding [1]. Group 2: Management Commentary - The Chief Financial Officer, Samuel Bush, emphasized the importance of this stock repurchase as a demonstration of the company's financial strength and commitment to disciplined capital allocation [2]. - The transaction is intended to provide greater flexibility in managing the company's capital structure while aiming to generate meaningful returns for stakeholders [2]. Group 3: Company Overview - Saga Communications operates in the media sector, providing services such as radio, digital, e-commerce, and local online news across 28 markets [2]. - The company serves national, regional, and local advertisers, addressing their growing advertising needs [2].

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Revenue Performance - For the nine months ended September 30, 2025, interactive advertising revenue increased to $12,606,000, up by $1,839,000 or 17.1% compared to $10,767,000 for the same period in 2024[137]. - Approximately 89% of the radio stations' gross revenue for the nine months ended September 30, 2025, was generated from local advertising, compared to 87% for the same period in 2024[127]. - The five largest markets (Charleston, Columbus, Des Moines, Milwaukee, and Norfolk) represented approximately 35% of consolidated net operating revenue for the nine months ended September 30, 2025[138]. - The radio stations in the five largest markets accounted for approximately 34% of consolidated station operating income for the nine months ended September 30, 2025[139]. - The company expects political revenue in 2025 to decrease from 2024 levels due to fewer elections at national, state, and local levels[128]. Operating Expenses - The primary operating expenses include employee salaries, sales commissions, programming expenses, and advertising and promotion expenses[136]. - Station operating expenses increased to $24,674,000, an increase of $1,965,000 or 8.7% compared to $22,709,000 for the three months ended September 30, 2024[144]. - Station operating expenses for the nine months ended September 30, 2025, were $68,863,000, an increase of $390,000 or 0.6% compared to $68,473,000 for the same period in 2024[150]. - The increase in station operating expenses was primarily due to a $2,086,000 increase in music licensing fees[144]. Financial Performance - For the three months ended September 30, 2025, net operating revenue decreased to $28,166,000, down $528,000 or 1.8% from $28,694,000 in the same period of 2024[143]. - The company reported an operating loss of $626,000 for the three months ended September 30, 2025, a decrease of $2,271,000 from operating income of $1,645,000 in the same period of 2024[145]. - Net loss for the three months ended September 30, 2025, was $532,000 ($(0.08) per share), compared to net income of $1,267,000 ($0.20 per share) for the same period in 2024, a decrease of $1,799,000[146]. - For the nine months ended September 30, 2025, net operating revenue was $80,607,000, down $3,097,000 or 3.7% from $83,704,000 in the same period of 2024[149]. - The company experienced an operating loss of $1,515,000 for the nine months ended September 30, 2025, compared to operating income of $1,371,000 for the same period in 2024, a decrease of $2,886,000[151]. - Net loss for the nine months ended September 30, 2025, was $979,000 ($(0.15) per share), compared to net income of $2,191,000 ($0.35 per share) for the same period in 2024, a decrease of $3,170,000[152]. - The decrease in net income was primarily due to a decrease in operating income and an increase in interest expense of $87,000[152]. Debt and Financing - The Company reduced the aggregate amount of the Lender's revolving commitments from $50 million to $40 million[154]. - As of September 30, 2025, the Company had $5 million of debt outstanding related to the Lafayette acquisition[158]. - The Company had approximately $45 million of unused borrowing capacity under the Credit Facility as of September 30, 2025[159]. - The Company has pledged substantially all of its assets in support of the Credit Facility[155]. - Interest rates under the Credit Facility are based on SOFR, which was 4.24% as of September 30, 2025, plus a spread of 1% to 2%[157]. - The Company anticipates financing future acquisitions and dividend payments through funds generated from operations or additional debt[167]. Cash Flow and Capital Expenditures - Net cash flows from operating activities for the nine months ended September 30, 2025, were $5.482 million, down from $10.141 million in 2024[160]. - Capital expenditures for the nine months ended September 30, 2025, were $2.6 million, with an anticipated range of $3 million to $3.5 million for 2025[163]. - The Company declared three quarterly cash dividends totaling $0.75 per share, amounting to approximately $4.8 million as of September 30, 2025[165]. - The Company incurred $161,000 of transaction fees related to the Credit Facility due to the Third Amendment, which are being amortized over the remaining life of the Credit Facility[156]. Advertising Strategy - The company operates in 28 markets, providing services to national, regional, and local advertisers[125]. - The advertising revenue is influenced by the overall economy, including factors such as unemployment rates and inflation[130]. - The company is pivoting towards a "blended advertising" model that integrates radio with digital solutions[137]. - The number of advertisements broadcast is managed to maximize revenue while maintaining audience ratings[134].

Financial Data and Key Metrics Changes - For Q3 2025, the company reported an operating income of $6,000 without the music licensing settlement, compared to $1,600,000 for the same period last year [4] - Station operating income for the quarter was $3,500,000, which would have been $5,600,000 without the settlement, down from $6,000,000 last year [4] - Net revenue for the nine-month period ended September 30, 2025, decreased by $3,100,000 or 3.7% to $80,600,000 compared to $83,700,000 last year [5] - Total interactive revenue increased by 32.6% for the quarter and 17.1% for the nine-month period, with a profit margin of 54% [7] Business Line Data and Key Metrics Changes - Gross broadcast revenue, including nontraditional revenue (NTR), decreased by $1,800,000 or 6.8%, while gross interactive revenue increased by $1,100,000 or 32.6% [4] - Political revenue for the quarter was $73,000, down from $677,000 last year [4] - The increase in interactive revenue offset almost the entire decrease in broadcast revenue when adjusted for political [5][26] Market Data and Key Metrics Changes - The company is currently pacing down approximately 11% for the fourth quarter, including political revenue, and 4.7% when excluding political [7] - Local pacing remains consistent, while digital pacing is up 32% for the quarter [31] Company Strategy and Development Direction - The company is focused on a blended digital strategy aiming to double gross revenue, primarily through digital channels, within 18 to 24 months [14] - Strategic investments in R&D and resources are being made to support this digital transformation [14] - The company plans to utilize proceeds from the sale of telecommunications towers for stock buybacks and to maintain a robust quarterly dividend strategy [9][15] Management's Comments on Operating Environment and Future Outlook - Management noted that the local advertising market is overdue for disruption, with businesses increasingly investing in digital advertising [22] - The company believes that its digital transformation is gaining momentum, with measurable returns already being observed [24][26] - Management acknowledged the challenges of the digital transformation but expressed confidence in the team's commitment and capabilities [27] Other Important Information - The company paid a quarterly dividend of $0.25 per share, totaling approximately $1,600,000 [8] - As of November 3, 2025, the company had $26,300,000 in cash and short-term investments [10] - The company expects capital expenditures between $3,250,000 and $3,750,000 for 2025 [11] Q&A Session Summary Question: Can you provide insights on market tone and pacing into the upcoming quarter? - Management indicated that national advertising is weak, impacting forward pacing, while local pacing is consistent and digital pacing is up 32% [30][31] Question: Why is there no concrete plan for a buyback post-tower sale? - Management explained that complexities related to the tower sale and real estate transfer issues delayed clarity on final sale proceeds, which are necessary for buyback planning [35][36]

Financial Data and Key Metrics Changes - For Q3 2025, net revenue decreased by $528,000, or 1.8%, to $28.2 million compared to $28.7 million last year [2] - Station operating expense increased by $2 million to $24.7 million for the three-month period, primarily due to an industry-wide settlement with music licensing organizations [2][3] - The company reported an operating loss of $626,000 for the quarter, which would have been an operating income of $1.5 million without the settlement [3] - Gross broadcast revenue decreased by $1.8 million, or 6.8%, while gross interactive revenue increased by $1.1 million, or 32.6% [4] - For the nine-month period ended September 30, 2025, net revenue decreased by $3.1 million, or 3.7%, to $80.6 million compared to $83.7 million last year [5] Business Line Data and Key Metrics Changes - Station operating income for Q3 2025 was reported at $3.5 million, which would have been $5.6 million without the settlement [3][4] - Total interactive revenue increased by 32.6% for the quarter and 17.1% for the nine-month period, with a 54% profit margin [7] - Political revenue for Q3 2025 was $73,000, down from $677,000 in the same period last year [4] Market Data and Key Metrics Changes - Current pacing for the fourth quarter is down approximately 11%, including political revenue, and 4.7% when excluding political [7] - Local pacing remains consistent, while digital pacing is up 32% for the quarter [24] Company Strategy and Development Direction - The company is focused on a blended digital strategy aiming to double gross revenue, primarily from digital sources, within 18-24 months [12] - Strategic investments in R&D and resources are being made to support this digital transformation [12] - The company plans to utilize proceeds from the sale of telecommunications towers for stock buybacks and to maintain a robust quarterly dividend strategy [9][13] Management's Comments on Operating Environment and Future Outlook - Management indicated that the national advertising market is weak, impacting forward pacing, while local and digital markets show different trends [24] - The company believes the decline in spot radio is more related to macroeconomic factors rather than interest rate cuts [25] - Management expressed confidence in the digital transformation efforts, noting measurable returns from local direct advertisers [19][21] Other Important Information - The company paid a quarterly dividend of $0.25 per share, totaling approximately $1.6 million [8] - As of September 30, 2025, the balance sheet reflected $26.3 million in cash and short-term investments [10] Q&A Session Summary Question: Can you provide insights on market tone and pacing into the upcoming quarter? - Management noted that national advertising is weak, local pacing is consistent, and digital pacing is up 32% for the quarter [24] Question: Why is there a lack of concrete buyback plans post-tower sale? - Management explained complexities related to the tower sale and real estate transfer issues, which delayed clarity on final sale proceeds [27][29]

Core Insights - Saga Communications reported a quarterly loss of $0.08 per share, missing the Zacks Consensus Estimate of $0.21, and compared to earnings of $0.20 per share a year ago, representing an earnings surprise of -138.10% [1] - The company posted revenues of $28.17 million for the quarter ended September 2025, slightly missing the Zacks Consensus Estimate by 0.47%, and showing a marginal increase from year-ago revenues of $28.12 million [2] - The stock has gained approximately 11.7% since the beginning of the year, underperforming the S&P 500's gain of 15.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.16 on revenues of $28.5 million, and for the current fiscal year, it is $0.30 on revenues of $109.24 million [7] - The estimate revisions trend for Saga was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Broadcast Radio and Television industry, to which Saga belongs, is currently ranked in the top 41% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8] - Another company in the same industry, Townsquare Media, is expected to report quarterly earnings of $0.05 per share, reflecting a year-over-year decline of -85.7%, with revenues anticipated to be $107.96 million, down 6.4% from the previous year [9][10]

Financial Performance - Net revenue decreased 1.8% to $28.2 million for Q3 2025 compared to $28.7 million in Q3 2024[1] - The company reported an operating loss of $626 thousand for Q3 2025, compared to operating income of $1.6 million in Q3 2024[1] - For the nine-month period ended September 30, 2025, net revenue decreased 3.7% to $80.6 million from $83.7 million in the same period last year[2] - The company had a net loss of $979 thousand for the nine-month period ended September 30, 2025, compared to net income of $2.2 million for the same period last year[2] - Station operating income decreased 23.0% to $11.7 million for the nine-month period ended September 30, 2025[2] - Basic loss per share for Q3 2025 was $(0.08), compared to earnings of $0.20 per share in Q3 2024[19] - The operating loss for the nine months ended September 30, 2025, was $(1,515) million, compared to an operating income of $1,371 million for the same period in 2024, indicating a significant decline in performance[32] - The operating loss for the three months ended September 30, 2025, was $(626) million, compared to an operating income of $1,645 million for the same period in 2024, indicating a significant decline[32] Operating Expenses - Station operating expense increased by $2.0 million or 8.7% to $24.7 million for Q3 2025, primarily due to a $2.1 million retroactive rate adjustment from music licensing organizations[1] - Station operating expense increased to $24,674,000 in Q3 2025 from $22,709,000 in Q3 2024, representing an increase of 8.6%[19] - Station operating expense for the nine months ended September 30, 2025, was $68,863 million, slightly increasing from $68,473 million in the same period of 2024, representing a year-over-year increase of 0.6%[32] - Corporate general and administrative expenses for the nine months ended September 30, 2025, were $9,061 million, up from $8,987 million in the same period of 2024, showing an increase of 0.8%[32] Cash and Investments - The company had $26.3 million in cash and short-term investments as of September 30, 2025, increasing to $34.2 million by November 3, 2025[8] Capital Expenditures - Capital expenditures for Q3 2025 were $600 thousand, unchanged from the same period last year[1] Debt and EBITDA - Total long-term debt, including current maturities, was reported at $5,000,000[29] - The trailing twelve-month consolidated EBITDA was $10,725,000, compared to $7,671,000 in the previous period[29] - The leverage ratio based on trailing twelve-month consolidated EBITDA was 0.68[29] Depreciation and Amortization - Depreciation and amortization for Q3 2025 totaled $1,307,000, down from $1,391,000 in Q3 2024[21] - Depreciation and amortization for the nine months ended September 30, 2025, was $3,900 million, compared to $3,847 million for the same period in 2024, reflecting a year-over-year increase of 1.4%[32] Other Income - Other operating income for the nine months ended September 30, 2025, was $298 million, a decrease from $1,026 million in the same period of 2024, indicating a decline of 70.9%[32] Dividends - A quarterly dividend of $0.25 per share was paid on September 19, 2025, totaling approximately $1.6 million[7] Telecommunications Towers Sale - The company entered into an agreement to sell telecommunications towers for approximately $10.7 million, with net proceeds of about $8.7 million received[5]

Core Insights - Saga Communications, Inc. reported a net revenue decrease of 1.8% to $28.2 million for Q3 2025 compared to $28.7 million in Q3 2024, primarily due to increased operating expenses related to a music licensing settlement [1][2] - The company experienced an operating loss of $626 thousand in Q3 2025, a significant decline from an operating income of $1.6 million in the same quarter last year [1][2] - For the nine-month period ending September 30, 2025, net revenue decreased by 3.7% to $80.6 million compared to $83.7 million in the previous year [2][3] Financial Performance - Q3 2025 station operating expenses rose by $2.0 million or 8.7% to $24.7 million, largely due to a retroactive rate adjustment of approximately $2.1 million from music licensing organizations [1][2] - Without the impact of the music licensing settlement, the operating loss would have been an operating income of $1.5 million, and station operating income would have been $5.6 million [1][2] - For the nine-month period, station operating income decreased by 23.0% to $11.7 million, with an operating loss of $1.5 million compared to an operating income of $1.4 million in the previous year [2][3] Capital Expenditures and Dividends - Capital expenditures for Q3 2025 were $600 thousand, unchanged from the same period last year, while total capital expenditures for the nine-month period were $2.6 million, down from $3.2 million [1][2] - The company paid a quarterly dividend of $0.25 per share on September 19, 2025, totaling approximately $1.6 million, and has paid over $140 million in dividends since 2012 [6][7] Balance Sheet and Cash Flow - As of September 30, 2025, the company had $26.3 million in cash and short-term investments, which increased to $34.2 million by November 3, 2025 [7] - The company expects to spend approximately $3.25 to $3.75 million on capital expenditures during 2025 [7] Political Revenue - Gross political revenue for Q3 2025 was $73 thousand, a significant decrease from $677 thousand in the same period last year, and for the nine-month period, it was $395 thousand compared to $1.3 million [4]

Core Viewpoint - Saga Communications, Inc. has sold 22 tower sites to GTC Uno, LLC for approximately $10.7 million, allowing the company to continue using the towers without cash lease payments [1][2]. Group 1: Transaction Details - The sale of the tower sites closed on October 17, 2025, and was effective from October 1, 2025 [1]. - The proceeds from the sale will be partially used to fund stock buybacks, which may include various forms of repurchases at the discretion of the Board [2]. Group 2: Company Overview - Saga Communications operates in the media sector, providing services such as radio, digital, e-commerce, and local online news across 28 markets [3]. - The company caters to national, regional, and local advertisers to meet their advertising needs [3].