Summary of Saga Communications Conference Call (October 08, 2025) Company Overview - **Company**: Saga Communications (NasdaqGM: SGA) - **Industry**: Broadcasting and Media - **Rating**: Outperform with a price target of $18 Key Points and Arguments Digital Strategy Transformation - Saga's digital strategy is described as a transformational change rather than a traditional strategy, focusing on a cultural shift within the company [2][3] - The company operates in 27 markets, with 21 being below Market 100, presenting opportunities for local advertising disruption [2][3] - Local advertising is seen as overdue for disruption, with businesses increasingly investing in digital but struggling to navigate the complexities [3][4] Advertising Market Insights - In 2024, U.S. advertising spend was $421 billion, with 73% ($309 billion) allocated to digital; projections for 2025 estimate $456 billion total, with 80% ($365 billion) in digital [7] - Radio currently captures only 5% ($21 billion) of total ad spend, and a mere 0.6% of digital ad spend [8] - Local direct advertisers not pitched the blended product risk losing 29% of existing radio business, while those who adopt it see a 9% increase in radio spend [9] Blended Advertising Strategy - Saga's blended strategy combines radio with digital search and display, aiming to double annual gross revenue by capturing just 5% of available digital dollars in 16 of its markets [6][16] - The company aims for digital revenue to grow to 65-67% of total revenue in the future [18] Market Position and Community Engagement - Saga focuses on small to medium-sized markets with strong community ties, enhancing its influence and trust among local advertisers [12][13] - The company emphasizes direct business relationships, which are crucial for the success of its blended strategy [13][14] Growth Initiatives - E-commerce has shown significant growth, increasing from $400,000 to nearly $3 million in revenue over 18 months [27] - Streaming revenue is also growing, with some stations reporting 30% of terrestrial delivery coming from streaming [27] Financial Health and Acquisition Strategy - Saga maintains a pristine balance sheet, avoiding excessive debt and focusing on selective acquisitions [32] - The company plans to continue its dividend policy while also considering stock buybacks from asset sales [34][35] Future Outlook - The company believes local radio can continue to grow despite challenges in national and remnant advertising [31] - Saga aims to demonstrate the effectiveness of its blended strategy to attract investors and narrow the valuation gap with peers [39][40] Additional Important Insights - The company has invested significantly in training its media advisors to become digital experts, reducing reliance on third-party providers [22][23] - Saga's approach to community involvement and local advertising is seen as a competitive advantage in its markets [12][14] This summary encapsulates the key points discussed during the conference call, highlighting Saga Communications' strategic direction, market insights, and financial health.

GROSSE POINTE FARMS, Mich., Oct. 07, 2025 (GLOBE NEWSWIRE) -- Saga Communications, Inc. (Nasdaq - SGA) (the “Company,” “Saga,” “we” or “our”) announced today that Christopher S. Forgy, President and Chief Executive Officer and Samuel D. Bush, Executive Vice President, Chief Financial Officer and Treasurer will be presenting at the Noble Capital Markets’ Emerging Growth Virtual Equity Conference on October 8, 2025 at 4:00p (EDT). The presentation will feature a fireside style Q&A session with Michael Kupinsk ...

GROSSE POINTE FARMS, Mich., Oct. 01, 2025 (GLOBE NEWSWIRE) -- Saga Communications, Inc. (Nasdaq - SGA) (the “Company,” “Saga,” “we” or “our”) announced today the increase of its number of board members to eight and the appointment of Gregg Sutherland to its Board of Directors. Mr. Sutherland was previously a Senior Partner at Ernst & Young where he served as the Strategy Consulting Practice Leader, Global and Americas. He was recently appointed as Chair of G2M Insights’ Board of Advisors. He previously serv ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents unaudited condensed consolidated financial statements, notes, and management's discussion and analysis [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents unaudited condensed consolidated financial statements, including balance sheets, statements of operations, equity, cash flows, and detailed notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20consolidated%20balance%20sheets%20%E2%80%94%20June%2030%2C%202025%20and%20December%2031%2C%202024) This section provides a snapshot of the company's financial position, detailing assets, liabilities, and equity at specific points in time Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------- | :-------------------- | | Total assets | $218,873 | $221,725 | -$2,852 | | Total liabilities | $55,193 | $55,803 | -$610 | | Total shareholders' equity | $163,680 | $165,922 | -$2,242 | | Cash and cash equivalents | $15,791 | $18,860 | -$3,069 | | Short-term investments | $9,116 | $8,927 | +$189 | | Accounts receivable, net | $15,120 | $15,941 | -$821 | | Net property and equipment | $51,219 | $51,907 | -$688 | | Broadcast licenses | $91,478 | $91,497 | -$19 | | Long-term debt | $5,000 | $5,000 | $0 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20consolidated%20statements%20of%20operations%20%E2%80%94%20Three%20and%20six%20months%20ended%20June%2030%2C%202025%20and%202024) This section outlines the company's financial performance over specific periods, detailing revenues, expenses, and net income or loss Condensed Consolidated Statements of Operations (in thousands) | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (YoY) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (YoY) | | :-------------------- | :--------------------------- | :--------------------------- | :----------- | :--------------------------- | :--------------------------- | :----------- | | Net operating revenue | $28,229 | $29,716 | -$1,487 (-5.0%) | $52,441 | $55,010 | -$2,569 (-4.7%) | | Station operating expenses | $22,226 | $23,305 | -$1,079 (-4.6%) | $44,189 | $45,764 | -$1,575 (-3.4%) | | Operating income (loss) | $1,409 | $2,143 | -$734 (-34.3%) | $(889) | $(274) | -$615 (224.5%) | | Net income (loss) | $1,128 | $2,501 | -$1,373 (-54.9%) | $(447) | $924 | -$1,371 (-148.4%) | | Basic EPS | $0.18 | $0.40 | -$0.22 (-55.0%) | $(0.07) | $0.15 | -$0.22 (-146.7%) | | Diluted EPS | $0.18 | $0.40 | -$0.22 (-55.0%) | $(0.07) | $0.15 | -$0.22 (-146.7%) | | Dividends declared per share | $0.25 | $0.25 | $0.00 | $0.50 | $1.10 | -$0.60 | [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20consolidated%20statements%20of%20stockholders'%20equity%20%E2%80%93%20Three%20and%20six%20months%20ended%20June%2030%2C%202025%20and%202024) This section details changes in the company's equity accounts, including retained earnings, paid-in capital, and treasury stock Condensed Consolidated Statements of Stockholders' Equity (in thousands) | Metric (in thousands) | December 31, 2024 | June 30, 2025 | Change (in thousands) | | :-------------------- | :---------------- | :------------ | :-------------------- | | Total Shareholders' Equity | $165,922 | $163,680 | -$2,242 | | Retained Earnings | $128,216 | $124,554 | -$3,662 | | Additional Paid-In Capital | $74,334 | $74,747 | +$413 | | Treasury Stock | $(36,710) | $(35,703) | +$1,007 | - Net loss for the six months ended June 30, 2025, was **$(447) thousand**[14](index=14&type=chunk) - Dividends declared per common share for the six months ended June 30, 2025, totaled **$(3,215) thousand**[14](index=14&type=chunk) - Compensation expense related to restricted stock awards for the six months ended June 30, 2025, was **$1,130 thousand**[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20consolidated%20statements%20of%20cash%20flows%20%E2%80%94%20Six%20months%20ended%20June%2030%2C%202025%20and%202024) This section reports the cash generated and used by the company across operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (in thousands) | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (YoY) (in thousands) | | :------------------------------------ | :--------------------------- | :--------------------------- | :-------------------------- | | Net cash provided by operating activities | $2,119 | $5,047 | -$2,928 | | Net cash used in investing activities | $(1,973) | $(4,846) | +$2,873 | | Net cash used in financing activities | $(3,215) | $(14,391) | +$11,176 | | Net decrease in cash and cash equivalents | $(3,069) | $(14,190) | +$11,121 | | Cash and cash equivalents, end of period | $15,791 | $15,392 | +$399 | - Acquisition of broadcast properties was **$0** in 2025, compared to **$(5,705) thousand** in 2024[16](index=16&type=chunk) - Cash dividends paid were **$(3,215) thousand** in 2025, compared to **$(19,391) thousand** in 2024[16](index=16&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20unaudited%20condensed%20consolidated%20financial%20statements) This section provides detailed explanations and additional information supporting the unaudited condensed consolidated financial statements [1. Summary of Significant Accounting Policies](index=9&type=section&id=1.%20Summary%20of%20Significant%20Accounting%20Policies) This section outlines the key accounting principles and methods used in preparing the financial statements - The company owns or operates broadcast properties in **28 markets**, including **82 FM** and **31 AM** radio stations and **79 metro signals**[20](index=20&type=chunk) - Earnings per share are calculated using the two-class method, allocating earnings to common shares and participating securities (restricted stock units)[22](index=22&type=chunk) - Held-to-maturity U.S. Treasury Bills were **$9.1 million** at June 30, 2025, and **$8.9 million** at December 31, 2024, recorded at amortized cost[26](index=26&type=chunk) - Allowance for credit losses increased slightly to **$1,099,000** at June 30, 2025, from **$1,071,000** at December 31, 2024[29](index=29&type=chunk) - The company operates as **one reportable business segment**: Radio[31](index=31&type=chunk) [2. Recent Accounting Pronouncements](index=13&type=section&id=2.%20Recent%20Accounting%20Pronouncements) This section details recently issued accounting standards and their potential impact on the company's financial reporting - ASU 2023-09 (Income Taxes): Effective for annual periods beginning after January 1, 2025, requiring expanded disclosure of income rate reconciliation and income taxes paid[38](index=38&type=chunk) - ASU 2024-03 (Expense Disaggregation Disclosures): Effective for annual periods beginning January 1, 2027, and interim periods beginning after January 1, 2028, requiring disclosures about specific types of expenses[39](index=39&type=chunk) - ASU 2025-05 (Credit Losses for Accounts Receivable and Contract Assets): Effective for annual periods beginning January 1, 2026, and interim periods within that year, simplifying credit loss estimation[40](index=40&type=chunk) [3. Revenue](index=13&type=section&id=3.%20Revenue) This section disaggregates revenue by type and explains the company's revenue recognition policies and contract liabilities Revenue (in thousands) | Type of Revenue | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (YoY) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (YoY) | | :------------------------ | :--------------------------- | :--------------------------- | :----------- | :--------------------------- | :--------------------------- | :----------- | | Broadcast Advertising, net | $21,626 | $23,167 | -$1,541 | $40,480 | $43,649 | -$3,169 | | Digital Advertising | $4,558 | $4,254 | +$304 | $8,053 | $7,333 | +$720 | | Other Revenue | $2,045 | $2,295 | -$250 | $3,908 | $4,028 | -$120 | | **Net Revenue** | **$28,229** | **$29,716** | **-$1,487** | **$52,441** | **$55,010** | **-$2,569** | - Primary revenue source is from the sale of advertising for broadcast on stations, recognized upon airing[41](index=41&type=chunk) - Interactive advertising revenue from digital initiatives (targeted digital advertising, search engine management, online promotions, etc.) is recognized over time as performance obligations are met[42](index=42&type=chunk) - Contract liabilities, primarily prepayments for advertising, are generally recognized within one year and are immaterial[47](index=47&type=chunk) [4. Broadcast Licenses, Goodwill and Other Intangible Assets](index=15&type=section&id=4.%20Broadcast%20Licenses%2C%20Goodwill%20and%20Other%20Intangible%20Assets) This section describes the company's policies for valuing and testing impairment of broadcast licenses, goodwill, and other intangible assets - FCC licenses are evaluated for impairment annually or more frequently if circumstances indicate, using a discounted cash flow approach[49](index=49&type=chunk) - Goodwill is evaluated for impairment annually using an income approach based on discounted cash flow analysis[50](index=50&type=chunk) - No triggering events for interim impairment tests were identified during the six months ended June 30, 2025[54](index=54&type=chunk) - Amortizable intangible assets (favorable lease agreements, other intangibles, customer relationships) are amortized using the straight-line method over **1 to 26 years**[56](index=56&type=chunk) [5. Common Stock and Treasury Stock](index=17&type=section&id=5.%20Common%20Stock%20and%20Treasury%20Stock) This section details the company's common stock structure, dividend policies, and treasury stock activities, including buyback programs - All Class B Common Stock automatically converted to Class A Common Stock upon the founder's passing; no Class B shares are outstanding or will be issued[57](index=57&type=chunk) - Shareholders are entitled to receive equal dividends on all classes of Common Stock[58](index=58&type=chunk) - The company has a Stock Buy-Back Program with **$17.7 million** remaining authorization as of June 30, 2025[64](index=64&type=chunk) - No shares were repurchased under the Buy-Back Program during the three and six months ended June 30, 2025, or 2024[64](index=64&type=chunk) - The company intends to use proceeds from potential non-core asset sales to fund future stock buybacks[64](index=64&type=chunk) [6. Leases](index=19&type=section&id=6.%20Leases) This section provides information on the company's lease arrangements, including right-of-use assets, lease liabilities, and rental commitments - Right-of-use (ROU) assets were **$6.2 million** at June 30, 2025, down from **$6.9 million** at December 31, 2024[66](index=66&type=chunk) - Lease liabilities were **$6.5 million** at June 30, 2025, down from **$7.3 million** at December 31, 2024[66](index=66&type=chunk) - Total lease expense for the six months ended June 30, 2025, was **$887,000**, compared to **$950,000** in 2024[69](index=69&type=chunk) Minimum Annual Rental Commitments (in thousands) at June 30, 2025 | Years Ending December 31, | Amount (in thousands) | | :------------------------ | :-------------------- | | 2025 (remaining 6 months) | $915 | | 2026 | $1,795 | | 2027 | $1,613 | | 2028 | $1,212 | | 2029 | $784 | | Thereafter | $1,465 | | **Total lease payments** | **$7,784** | | Less: Interest | $1,262 | | **Present value of lease liabilities** | **$6,522** | - Weighted average remaining lease term and discount rate were **5.9 years** and **5.9%**, respectively, at June 30, 2025[74](index=74&type=chunk) [7. Acquisitions and Dispositions](index=21&type=section&id=7.%20Acquisitions%20and%20Dispositions) This section outlines the company's recent acquisitions and dispositions of broadcast properties and their financial impact - In 2025, the company canceled the FCC license for WVAX-AM, resulting in a **$19,000 loss**[73](index=73&type=chunk) - In 2024, the company acquired assets of six radio stations in Lafayette, Indiana, for **$5.3 million**, recognizing **$76,000** in goodwill[77](index=77&type=chunk) - In 2024, the company disposed of WNDN-FM for **$150,000** (loss of **$20,000**), WYSE-AM and translators for **$10,000** (loss of **$147,000**), and canceled the FCC license for KBAI-AM (loss of **$800,000**)[77](index=77&type=chunk)[78](index=78&type=chunk)[79](index=79&type=chunk) Pro Forma Results of Operations for Acquisitions (Unaudited) - Six Months Ended June 30, 2024 (in thousands, except per share data) | Metric | Actual 2024 (in thousands) | Pro Forma 2024 (in thousands) | | :-------------------- | :------------------------- | :---------------------------- | | Net operating revenue | $55,010 | $56,178 | | Net income (loss) | $924 | $846 | | Diluted EPS | $0.15 | $0.13 | [8. Income taxes](index=25&type=section&id=8.%20Income%20taxes) This section presents the company's income tax benefit/expense and effective tax rates for the reported periods Income Tax (Benefit) Expense (in thousands) | Period | 2025 (in thousands) | 2024 (in thousands) | Change (in thousands) | | :--------------------------- | :------------------ | :------------------ | :-------------------- | | Three Months Ended June 30 | $385 | $955 | -$570 | | Six Months Ended June 30 | $(200) | $375 | -$575 | Effective Tax Rate | Period | 2025 | 2024 | | :--------------------------- | :----- | :----- | | Three Months Ended June 30 | 25.4% | 27.6% | | Six Months Ended June 30 | 30.9% | 28.9% | - A new tax law signed on July 4, 2025, extending several business tax provisions, is not anticipated to have a material impact on financial statements[89](index=89&type=chunk) [9. Stock-Based Compensation](index=26&type=section&id=9.%20Stock-Based%20Compensation) This section details the company's stock-based compensation plans, including restricted stock awards and related expenses - The 2023 Incentive Compensation Plan replaced the 2005 Plan, authorizing up to **600,000 shares** of Class A Common Stock for awards[92](index=92&type=chunk) - No stock options were granted or outstanding during 2025 or 2024[93](index=93&type=chunk) Restricted Stock Compensation Expense (in thousands) | Period | 2025 (in thousands) | 2024 (in thousands) | | :--------------------------- | :------------------ | :------------------ | | Three Months Ended June 30 | $603 | $520 | | Six Months Ended June 30 | $1,130 | $973 | - As of June 30, 2025, **277,243 non-vested restricted shares** were outstanding with a weighted average grant date fair value of **$15.63**[95](index=95&type=chunk) [10. Long-Term Debt](index=28&type=section&id=10.%20Long-Term%20Debt) This section describes the company's long-term debt arrangements, including its revolving credit facility and compliance with covenants - Long-term debt remained at **$5.0 million** at June 30, 2025, and December 31, 2024[96](index=96&type=chunk) - The revolving credit facility matures on **December 19, 2027**, with interest rates based on SOFR (**4.45%** at June 30, 2025) plus a spread[96](index=96&type=chunk)[100](index=100&type=chunk) - The company was in compliance with all financial covenants at June 30, 2025[101](index=101&type=chunk) - Approximately **$45 million** of unused borrowing capacity was available under the Credit Facility at June 30, 2025[101](index=101&type=chunk) [11. Litigation](index=29&type=section&id=11.%20Litigation) This section confirms that the company is not currently involved in any material legal proceedings - The company is not a party to any current legal proceedings that are material to its financial condition[102](index=102&type=chunk) [12. Dividends](index=29&type=section&id=12.%20Dividends) This section reports dividends declared on common stock and outlines the company's future dividend policy Dividends Declared on Class A Common Stock | Period | Per Share | Total (in millions) | | :--------------------------- | :-------- | :------------------ | | Six Months Ended June 30, 2025 | $0.50 | $3.2 | | Six Months Ended June 30, 2024 | $1.10 | $6.9 (plus $12.5 special dividend) | - The company intends to declare regular quarterly cash dividends and variable dividends, with future declarations subject to Board discretion based on financial results and cash requirements[105](index=105&type=chunk) [13. Other Income and Loss](index=30&type=section&id=13.%20Other%20Income%20and%20Loss) This section details significant non-operating income or loss items, such as gains from investment sales - A one-time gain of **$1,133,000** was recorded in Q2 2024 from the sale of an investment in Broadcast Music, Inc. (BMI), with no comparable gain in 2025[107](index=107&type=chunk) [14. Commitments and Contingencies](index=30&type=section&id=14.%20Commitments%20and%20Contingencies) This section outlines the company's future financial obligations and potential liabilities from various agreements - A **$480,000** payment was made on July 31, 2025, for the former CEO's estate's income tax obligation related to a life insurance policy payout[108](index=108&type=chunk) - A new Interim License Agreement with Broadcast Music, Inc. (BMI) for 2022-2026 is expected to be finalized in Q3 or Q4 2025, potentially incurring additional expenses[109](index=109&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides a detailed analysis of the company's financial performance, condition, and liquidity, highlighting a decline in revenue and net income for the first half of 2025 [Cautionary Note Regarding Forward-Looking Statements](index=31&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section advises that the report contains forward-looking statements subject to risks and uncertainties that may cause actual results to differ materially - The report contains forward-looking statements identified by terms such as "will," "may," "believes," "intends," "expects," "anticipates," "plans," "projects," "estimates," and "guidance"[111](index=111&type=chunk) - Actual results may materially differ due to various risks and uncertainties, including adverse changes in interest rates, financial leverage, dependence on key personnel/stations, economic conditions, market volatility, competition, regulatory requirements, tax laws, technological advances, cyber-attacks, and geopolitical events[111](index=111&type=chunk) [Introduction](index=31&type=section&id=Introduction) This section provides context for the discussion, advising readers to review it with the accompanying financial statements and prior annual report - This discussion should be read in conjunction with the unaudited condensed consolidated financial statements and accompanying notes in this report, and the audited financial statements and Management's Discussion and Analysis in the annual report on Form 10-K for the year ended December 31, 2024[112](index=112&type=chunk) [Critical Accounting Policies and Estimates](index=31&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section discusses key accounting policies and estimates, noting no significant changes since the prior annual report - No significant changes to critical accounting policies have occurred since the annual report on Form 10-K for the year ended December 31, 2024[113](index=113&type=chunk) - The company uses "station operating income" (a non-GAAP measure) to assess financial performance, market-level performance, and for incentive-based compensation[114](index=114&type=chunk)[115](index=115&type=chunk) [Financial Condition and Results of Operations](index=33&type=section&id=Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes the company's financial health and performance, including revenue, expenses, and profitability trends [General](index=33&type=section&id=General) This section provides an overview of Saga Communications as a media company primarily engaged in broadcast property operations - Saga Communications is a media company primarily engaged in acquiring, developing, and operating broadcast properties, including digital, e-commerce, and non-traditional revenue initiatives[116](index=116&type=chunk) - The company owns or operates broadcast properties in **28 markets**, including **82 FM** and **31 AM** radio stations and **79 metro signals**[116](index=116&type=chunk) [Radio Stations](index=33&type=section&id=Radio%20Stations) This section details revenue sources, advertising trends, seasonality, and digital strategy for the company's radio station operations - The primary source of revenue for radio stations is from the sale of advertising, with most contracts being short-term[117](index=117&type=chunk)[118](index=118&type=chunk) - Approximately **90%** of gross radio station revenue for the six months ended June 30, 2025, was from local advertising[118](index=118&type=chunk) - Revenue varies seasonally, with the first quarter typically being the lowest, and political revenue is expected to decrease in 2025 due to fewer elections[119](index=119&type=chunk) - Interactive advertising revenue increased by **$720,000 (9.9%)** to **$8,053,000** for the six months ended June 30, 2025, compared to **$7,333,000** in 2024[127](index=127&type=chunk) - The company's "Blended Advertising" digital strategy focuses on providing simple digital advertising solutions (SEM, SEO, Targeted Display) in conjunction with radio[127](index=127&type=chunk) - The five largest markets (Charleston, Columbus, Des Moines, Milwaukee, Norfolk) represented approximately **35%** of consolidated net operating revenue and **38%** of consolidated station operating income for the six months ended June 30, 2025[129](index=129&type=chunk)[130](index=130&type=chunk) [Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024](index=36&type=section&id=Three%20Months%20Ended%20June%2030%2C%202025%20Compared%20to%20Three%20Months%20Ended%20June%2030%2C%202024) This section compares the company's financial performance for the three-month periods, highlighting revenue and expense changes Financial Performance (3 Months Ended June 30, 2025 vs. 2024) (in thousands) | Metric (in thousands) | 2025 | 2024 | Change ($) | Change (%) | | :-------------------- | :----- | :----- | :--------- | :--------- | | Net operating revenue | $28,229 | $29,716 | $(1,487) | (5.0)% | | Station operating expenses | $22,226 | $23,305 | $(1,079) | (4.6)% | | Operating income | $1,409 | $2,143 | $(734) | (34.3)% | | Net income | $1,128 | $2,501 | $(1,373) | (54.9)% | | Diluted EPS | $0.18 | $0.40 | $(0.22) | (55.0)% | - Same-station revenue decreased by **$1,883,000**, primarily due to decreases in gross local revenue (**$1,634,000**), political revenue (**$237,000**), and national revenue (**$182,000**)[133](index=133&type=chunk) - Gross interactive revenue increased by **$265,000**[133](index=133&type=chunk) - Same-station operating expense decreased by **$1,469,000**, mainly from lower compensation-related expenses (**$675,000**) and digital services expenses (**$283,000**)[134](index=134&type=chunk) - Net income decrease was also impacted by a **$1,132,000** decrease in other income due to a one-time gain from BMI investment sale in 2024[136](index=136&type=chunk) [Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024](index=38&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20Compared%20to%20Six%20Months%20Ended%20June%2030%2C%202024) This section compares the company's financial performance for the six-month periods, detailing revenue, expense, and net income changes Financial Performance (6 Months Ended June 30, 2025 vs. 2024) (in thousands) | Metric (in thousands) | 2025 | 2024 | Change ($) | Change (%) | | :-------------------- | :----- | :----- | :--------- | :--------- | | Net operating revenue | $52,441 | $55,010 | $(2,569) | (4.7)% | | Station operating expenses | $44,189 | $45,764 | $(1,575) | (3.4)% | | Operating income (loss) | $(889) | $(274) | $(615) | 224.5% | | Net income (loss) | $(447) | $924 | $(1,371) | (148.4)% | | Diluted EPS | $(0.07) | $0.15 | $(0.22) | (146.7)% | - Same-station revenue decreased by **$3,548,000**, primarily from gross local revenue (**$3,443,000**), national revenue (**$613,000**), and political revenue (**$277,000**)[139](index=139&type=chunk) - Gross interactive revenue increased by **$609,000**[139](index=139&type=chunk) - Same-station operating expense decreased by **$2,582,000**, mainly due to lower compensation-related expenses (**$1,308,000**) and digital services expenses (**$426,000**)[140](index=140&type=chunk) - The net loss was significantly impacted by the absence of the **$1,133,000** gain from the BMI investment sale in 2024[142](index=142&type=chunk) [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's ability to meet its short-term and long-term financial obligations and fund operations [Debt Arrangements and Debt Service Requirements](index=42&type=section&id=Debt%20Arrangements%20and%20Debt%20Service%20Requirements) This section details the company's debt structure, including its credit facility, interest rates, and covenant compliance - The Credit Facility, maturing **December 19, 2027**, has **$5.0 million** debt outstanding at June 30, 2025, and December 31, 2024[143](index=143&type=chunk)[147](index=147&type=chunk) - Interest rates are based on SOFR (**4.45%** at June 30, 2025) plus a spread, or the base rate plus a spread[146](index=146&type=chunk) - The company was in compliance with all financial covenants at June 30, 2025[147](index=147&type=chunk) - Approximately **$45 million** of unused borrowing capacity was available under the Credit Facility at June 30, 2025[148](index=148&type=chunk) [Sources and Uses of Cash](index=42&type=section&id=Sources%20and%20Uses%20of%20Cash) This section analyzes the company's cash flows from operating, investing, and financing activities, including capital expenditures and dividends - Net cash provided by operating activities was **$2,119,000** for the six months ended June 30, 2025, down from **$5,047,000** in 2024[149](index=149&type=chunk) - Capital expenditures (exclusive of acquisitions) were **$2,010,000** for H1 2025, with an anticipated **$3.0 million to $3.5 million** for the full year 2025[152](index=152&type=chunk) - Cash dividends paid totaled **$3.2 million** for H1 2025, significantly lower than **$19.4 million** for H1 2024 (which included a **$12.5 million** special dividend)[154](index=154&type=chunk)[155](index=155&type=chunk) - The company intends to use a portion of proceeds from potential non-core asset sales to fund stock buybacks under its Buy-Back Program[151](index=151&type=chunk) [Summary Disclosures About Contractual Obligations and Commercial Commitments](index=44&type=section&id=Summary%20Disclosures%20About%20Contractual%20Obligations%20and%20Commercial%20Commitments) This section outlines the company's future cash obligations from debt, leases, and other agreements, and their anticipated funding - Future cash obligations include those under the Credit Facility, operating leases, programming contracts, and employment agreements[157](index=157&type=chunk) - These obligations are anticipated to be financed through funds generated from operations or additional borrowings under the Credit Facility[158](index=158&type=chunk) [Recent Accounting Pronouncements](index=44&type=section&id=Recent%20Accounting%20Pronouncements) This section refers to detailed information on recent accounting pronouncements provided in the financial statement notes - Refer to Note 2 of the accompanying financial statements for details on recent accounting pronouncements[159](index=159&type=chunk) [Inflation](index=44&type=section&id=Inflation) This section discusses the impact of inflation on the company's operations, noting rising costs and potential future adverse effects - The impact of inflation on operations has not been significant to date, but the company is observing rising costs for most goods and services[160](index=160&type=chunk) - A high rate of inflation in the future could have an adverse effect on operations[160](index=160&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) There have been no material changes to the market risk information previously disclosed in the company's 2024 annual report on Form 10-K - No material changes to the market risk information previously disclosed in the 2024 annual report on Form 10-K[161](index=161&type=chunk) [Item 4. Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) The company's CEO and CFO concluded that disclosure controls and procedures were effective as of June 30, 2025, with a previously identified material weakness remediated - Disclosure controls and procedures were effective as of June 30, 2025[162](index=162&type=chunk) - A material weakness in internal control over financial reporting related to broadcast and digital revenue reconciliations, identified in the 2024 Form 10-K, has been fully remediated by June 30, 2025[163](index=163&type=chunk)[165](index=165&type=chunk) - Remediation included enhancements to system access controls, new reconciliation procedures, and increased management monitoring[164](index=164&type=chunk) [PART II OTHER INFORMATION](index=45&type=section&id=PART%20II%20OTHER%20INFORMATION) This section provides additional information not covered in the financial statements, including legal proceedings, risk factors, equity sales, and corporate governance updates [Item 1. Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings that are considered material to its financial condition - The company is not a party to any current legal proceedings that are material to its financial condition, either individually or in the aggregate[168](index=168&type=chunk) [Item 1A. Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's 2024 annual report on Form 10-K - No material changes to the risk factors previously disclosed in the annual report on Form 10-K for the year ended December 31, 2024[169](index=169&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company made no unregistered sales of equity securities during the quarter ended June 30, 2025, and no shares were repurchased under its Stock Buy-Back Program - No unregistered sales of equity securities were made during the quarter ended June 30, 2025[170](index=170&type=chunk) - No shares were repurchased under the Stock Buy-Back Program during the three months ended June 30, 2025[171](index=171&type=chunk) - Remaining authorization for future repurchases under the Buy-Back Program is **$17,686,383**[171](index=171&type=chunk) [Item 5. Other Information](index=46&type=section&id=Item%205.%20Other%20Information) On June 20, 2025, the company adopted amended and restated bylaws, significantly changing procedures for shareholder nominations of directors and proposals - On June 20, 2025, the company filed a Current Report on Form 8-K announcing the adoption of amended and restated bylaws[172](index=172&type=chunk) - The Amended and Restated Bylaws enhance procedural mechanics and disclosure requirements for shareholder nominations of directors and submissions of other business proposals[172](index=172&type=chunk) - Shareholder proposals and nominations for the 2026 Annual Meeting must be submitted by **February 1, 2026**, or within specific adjusted timelines if the meeting date changes[174](index=174&type=chunk) [Item 6. Exhibits](index=49&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications from the CEO and CFO, XBRL documents, and references to previously filed documents such as the Articles of Incorporation and Amended and Restated Bylaws - Exhibits include certifications (31.1, 31.2, 32), Inline XBRL documents (101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE), and references to Articles of Incorporation and Amended and Restated Bylaws[176](index=176&type=chunk) [SIGNATURES](index=50&type=section&id=SIGNATURES) This section confirms the official signing of the report by the company's Executive Vice President, CFO, and Chief Accounting Officer [SIGNATURES](index=50&type=section&id=SIGNATURES) The report was duly signed on August 8, 2025, by Samuel D. Bush, Executive Vice President and Chief Financial Officer, and Catherine A. Bobinski, Senior Vice President, Chief Accounting Officer and Corporate Controller - The report was signed on **August 8, 2025**, by Samuel D. Bush (Executive Vice President and Chief Financial Officer) and Catherine A. Bobinski (Senior Vice President, Chief Accounting Officer and Corporate Controller)[180](index=180&type=chunk)

Financial Data and Key Metrics Changes - For Q2 2025, net revenue decreased by $1.5 million or 5% to $28.2 million compared to $29.7 million last year [16] - Station operating expense decreased by $1.1 million or 4.6% to $22.2 million for the quarter [16] - Operating income for the quarter was $1.4 million compared to $2.1 million last year [16] - Net income for the quarter was $1.1 million compared to $2.5 million for the same period last year [17] - For the six-month period, net revenue decreased by $2.6 million or 4.7% to $52.4 million compared to $55 million last year [19] - The company reported a net loss of $447,000 for the six-month period compared to net income of $924,000 last year [19] Business Line Data and Key Metrics Changes - Total interactive revenue increased by 7% for the quarter and 10% for the six-month period, with profit margins of 58% for the quarter and 55% for the six-month period [21] - E-commerce revenue grew by 17% for Q2 and is up 8% for the six-month period [22] - The online news initiative revenue grew by 26% for the quarter and 51% for the six-month period compared to 2024 [21] Market Data and Key Metrics Changes - The company is currently pacing down approximately 1% for Q3, but September is pacing up 1.5% [22] - Local direct revenue is pacing down 4.4%, local agency down 0.8%, and national down 19.1% for Q3 [23] Company Strategy and Development Direction - The company is focusing on reducing unnecessary operating expenses, reinvesting in research and development, and training media advisers to navigate a fragmented marketplace [12][13] - The management emphasizes the importance of maintaining a strong digital culture and improving digital revenue as part of their growth strategy [10][11] - The company is exploring the sale of non-core assets and tower sites to fund stock buybacks and dividends [25][31] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the future despite current challenges, stating that traditional revenue verticals are showing signs of recovery [11] - The company is committed to selling its way out of the current macroeconomic challenges rather than cutting costs [12] - Management highlighted the need for talented media advisers to help advertisers navigate a complex marketplace [12] Other Important Information - The company paid a quarterly dividend of $0.25 per share, totaling approximately $1.6 million [24] - Saga has paid over $138 million in dividends since 2012 and has repurchased over $58 million in stock [24] - The company has $24.9 million in cash and short-term investments as of August 4, 2025 [25] Q&A Session Summary Question: Can you discuss Q3 pacing and the growth of the digital business? - Management noted strong growth in the digital business and positive pacing for Q3, despite fragmentation in search traffic [28][29] Question: What are the capital allocation plans? - Management confirmed non-binding negotiations to sell tower sites, expecting proceeds in the high 7-figure or low 8-figure range, with some proceeds allocated for stock buybacks and dividends [31]

Executive Summary & Financial Highlights Saga Communications reported decreased net revenue and income for Q2 and the first half of 2025, alongside ongoing capital allocation strategies [Q2 2025 Financial Performance](index=1&type=section&id=Q2_2025_Financial_Performance) Saga Communications reported a decrease in net revenue and net income for the second quarter of 2025 compared to the prior year, with diluted EPS at $0.18. Same station net revenue also saw a decline Q2 2025 Key Financials (vs. Q2 2024) | Metric | Q2 2025 (Millions $) | Q2 2024 (Millions $) | Change (%) | | :------------------------ | :-------- | :-------- | :--------- | | Net Revenue | $28.2M | $29.7M | -5.0% | | Station Operating Expense | $22.2M | $23.3M | -4.6% | | Operating Income | $1.4M | $2.1M | -33.3% | | Station Operating Income | $6.0M | $6.4M | -6.4% | | Net Income | $1.1M | $2.5M | -56.0% | | Diluted EPS | $0.18 | $0.40 | -55.0% | - On a same station basis, net revenue decreased by **$1.5 million or 6.4%** to $27.6 million for the quarter ended June 30, 2025[2](index=2&type=chunk) - Gross political revenue **significantly decreased** to **$51 thousand** in Q2 2025 from **$288 thousand** in Q2 2024[5](index=5&type=chunk) [Six Months Ended June 30, 2025 Financial Performance](index=1&type=section&id=Six_Months_2025_Financial_Performance) For the first six months of 2025, Saga Communications reported a net loss, a decline in net revenue, and a decrease in station operating income compared to the same period last year Six Months 2025 Key Financials (vs. Six Months 2024) | Metric | Six Months 2025 (Millions $) | Six Months 2024 (Millions $) | Change (%) | | :------------------------ | :-------------- | :-------------- | :--------- | | Net Revenue | $52.4M | $55.0M | -4.7% | | Station Operating Expense | $44.2M | $45.8M | -3.4% | | Operating Loss | ($889K) | ($274K) | -224.5% | | Station Operating Income | $8.2M | $9.2M | -10.8% | | Net Loss | ($447K) | $924K | -148.4% | | Diluted Loss Per Share | ($0.07) | $0.15 | -146.7% | - On a same station basis, net revenue decreased by **$2.6 million or 6.5%** to $51.2 million for the six months ended June 30, 2025[4](index=4&type=chunk) - Gross political revenue for the six-month period was **$321 thousand**, down from **$598 thousand** in the comparable period last year[5](index=5&type=chunk) [Capital Allocation & Strategic Initiatives](index=1&type=section&id=Capital_Allocation_Strategic_Initiatives) The Company continues its capital allocation strategy, including regular dividends and exploring asset sales to fund potential stock buybacks, while maintaining a healthy cash position - Saga paid a quarterly dividend of **$0.25 per share** on June 27, 2025, totaling approximately **$1.6 million**, and **intends to continue regular quarterly cash dividends**[6](index=6&type=chunk) - The Company is in non-binding negotiations to sell some tower sites, with anticipated proceeds in the **high 7 figure or low 8 figure range**, and is **assessing the potential sale of other non-core assets to fund stock buybacks**[7](index=7&type=chunk) Cash and Capital Expenditure Outlook | Metric | Amount (Millions $) | | :-------------------------------- | :----- | | Cash & Short-Term Investments (June 30, 2025) | $24.9M | | Cash & Short-Term Investments (August 4, 2025) | $27.3M | | Expected Capital Expenditures (2025) | $3.0M - $3.5M | Company Overview & Non-GAAP Measures This section describes Saga Communications' business, explains its use of non-GAAP financial measures, outlines forward-looking statement caveats, and provides conference call details [Company Description](index=3&type=section&id=Company_Description) Saga Communications is a media company focused on acquiring, developing, and operating broadcast properties, expanding into digital and non-traditional revenue streams - Saga is a media company focused on acquiring, developing, and operating broadcast properties, with a growing emphasis on digital, e-commerce, local online news, and non-traditional revenue initiatives[14](index=14&type=chunk) - The Company owns or operates broadcast properties in **28 markets**, including **82 FM, 31 AM radio stations, and 79 metro signals**[14](index=14&type=chunk) [Non-GAAP Financial Measures Explanation](index=3&type=section&id=Non_GAAP_Financial_Measures_Explanation) Saga utilizes several non-GAAP financial measures, such as 'same station' and 'station operating income,' to provide additional insights into its financial performance and facilitate industry comparisons, emphasizing they are supplementary to GAAP results - Saga uses non-GAAP measures like 'same station' financial information, 'pro forma' financial information, 'station operating income,' 'trailing 12-month consolidated EBITDA,' and 'leverage ratio' to assess financial performance and provide meaningful comparisons within the broadcasting industry[12](index=12&type=chunk) - These non-GAAP measures are not liquidity or performance measures in accordance with GAAP and should be viewed as a supplement, not a substitute, for GAAP results[12](index=12&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward_Looking_Statements) The press release contains forward-looking statements, which are subject to various risks and uncertainties, and the Company does not commit to updating this information - The press release includes forward-looking statements based on current expectations, involving risks and uncertainties, as described in Saga's SEC filings, particularly Item 1A of its Form 10-K[13](index=13&type=chunk) - Actual results may differ materially due to factors like global, national, and local economic changes, and changes in the radio broadcast industry, with Saga undertaking no obligation to update such statements[13](index=13&type=chunk) [Conference Call Information](index=3&type=section&id=Conference_Call_Information) Saga Communications scheduled a conference call for August 7, 2025, to discuss its Q2 2025 results, with provisions for submitting questions in advance - Saga's 2025 Second Quarter conference call was scheduled for **Thursday, August 7, 2025, at 11:00 a.m. ET**, with dial-in details provided[10](index=10&type=chunk) - Parties wishing to submit questions for the conference call were requested to email inquiries to SagaIR@sagacom.com by 10:00 a.m. on August 7, 2025[11](index=11&type=chunk) Consolidated Financial Statements This section presents the consolidated statements of operations, balance sheets, and cash flows, detailing the company's financial position and performance for the periods presented [Consolidated Statements of Operations](index=4&type=section&id=Consolidated_Statements_of_Operations) The consolidated statements of operations show a decline in net operating revenue and a shift from operating income to operating loss for the six-month period, alongside a decrease in net income for the quarter and a net loss for the six-month period Selected Consolidated Statements of Operations Data (Amounts in 000's) | Operating Results | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net operating revenue | $28,229 | $29,716 | $52,441 | $55,010 | | Station operating expense | 22,226 | 23,305 | 44,189 | 45,764 | | Corporate general and administrative | 3,074 | 3,004 | 6,241 | 6,087 | | Depreciation and amortization | 1,267 | 1,258 | 2,593 | 2,456 | | Other operating expense, net | 253 | 6 | 307 | 977 | | Operating income (loss) | 1,409 | 2,143 | (889) | (274) | | Interest expense | 107 | 71 | 214 | 114 | | Interest income | (210) | (251) | (432) | (554) | | Other income, net | (1) | (1,133) | (24) | (1,133) | | Income (loss) before income tax expense | 1,513 | 3,456 | (647) | 1,299 | | Income tax (benefit) expense | 385 | 955 | (200) | 375 | | Net income (loss) | $1,128 | $2,501 | $(447) | $924 | | Diluted Income (loss) per share | $0.18 | $0.40 | $(0.07) | $0.15 | [Consolidated Balance Sheets](index=4&type=section&id=Consolidated_Balance_Sheets) The balance sheet data shows a slight increase in working capital and a decrease in total assets and stockholders' equity as of June 30, 2025, compared to June 30, 2024, with long-term debt remaining constant Selected Consolidated Balance Sheet Data (Amounts in 000's) | Balance Sheet Data | June 30, 2025 | June 30, 2024 | | :------------------------ | :------------ | :------------ | | Working capital | $29,054 | $28,920 | | Net fixed assets | $51,219 | $53,251 | | Net intangible assets and other assets | $122,118 | $122,321 | | Total assets | $218,873 | $221,617 | | Long-term debt | $5,000 | $5,000 | | Stockholders' equity | $163,680 | $165,827 | [Consolidated Statements of Cash Flows](index=5&type=section&id=Consolidated_Statements_of_Cash_Flows) For the six months ended June 30, 2025, net cash provided by operating activities decreased significantly, while net cash used in investing and financing activities also saw changes, resulting in an overall net decrease in cash and cash equivalents Selected Consolidated Statements of Cash Flows Data (Amounts in 000's) | Statement of Cash Flows | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :----------------------------- | :----------------------------- | | Net (loss) income | $(447) | $924 | | Net cash provided by operating activities | $2,119 | $5,047 | | Net cash used in investing activities | $(1,973) | $(4,846) | | Net cash used in financing activities | $(3,215) | $(14,391) | | Net decrease in cash and cash equivalents | $(3,069) | $(14,190) | | Cash and cash equivalents, beginning of period | $18,860 | $29,582 | | Cash and cash equivalents, end of period | $15,791 | $15,392 | Supplemental Financial Data & Reconciliations This section provides supplemental operating results for various periods and reconciliations of GAAP measures to non-GAAP metrics like station operating income and trailing 12-month consolidated EBITDA [Three Months Ended June 30, 2025 & 2024 Supplemental Data](index=6&type=section&id=Three_Months_Ended_June_30_2025_%26_2024_Supplemental) Supplemental data for the three months ended June 30, 2025, provides a breakdown of operating results under actual, same station, and pro forma bases, showing consistent revenue and operating income declines across these views Operating Results (Three Months Ended June 30, 2025 vs. 2024, Amounts in 000's) | Metric | Actual 2025 | Actual 2024 | Same Station 2025 | Same Station 2024 | Pro Forma 2025 | Pro Forma 2024 | | :------------------------ | :---------- | :---------- | :---------------- | :---------------- | :------------- | :------------- | | Net operating revenue | $28,229 | $29,716 | $27,575 | $29,458 | $28,229 | $30,256 | | Station operating expense | 22,226 | 23,305 | 21,656 | 23,125 | 22,226 | 23,692 | | Corporate G&A | 3,074 | 3,004 | 3,074 | 3,003 | 3,074 | 3,004 | | Depreciation & amortization | 1,267 | 1,258 | 1,158 | 1,210 | 1,267 | 1,350 | | Other operating expense, net | 253 | 6 | 253 | 6 | 253 | 6 | | Operating income | $1,409 | $2,143 | $1,434 | $2,114 | $1,409 | $2,204 | [Six Months Ended June 30, 2025 & 2024 Supplemental Data](index=7&type=section&id=Six_Months_Ended_June_30_2025_%26_2024_Supplemental) For the six months ended June 30, 2025, supplemental data reveals operating losses across actual, same station, and pro forma bases, with net operating revenue and station operating expense showing declines compared to the previous year Operating Results (Six Months Ended June 30, 2025 vs. 2024, Amounts in 000's) | Metric | Actual 2025 | Actual 2024 | Same Station 2025 | Same Station 2024 | Pro Forma 2025 | Pro Forma 2024 | | :------------------------ | :---------- | :---------- | :---------------- | :---------------- | :------------- | :------------- | | Net operating revenue | $52,441 | $55,010 | $51,194 | $54,742 | $52,441 | $56,178 | | Station operating expense | 44,189 | 45,764 | 42,998 | 45,580 | 44,189 | 46,679 | | Corporate G&A | 6,241 | 6,087 | 6,241 | 6,087 | 6,241 | 6,087 | | Depreciation & amortization | 2,593 | 2,456 | 2,341 | 2,408 | 2,593 | 2,685 | | Other operating expense, net | 307 | 977 | 307 | 977 | 307 | 977 | | Operating loss | $(889) | $(274) | $(693) | $(310) | $(889) | $(250) | [Reconciliation of GAAP Operating Income to Station Operating Income](index=8&type=section&id=Reconciliation_GAAP_Operating_Income_to_Station_Operating_Income) The reconciliation shows how GAAP operating income (loss) is adjusted by adding back corporate general and administrative expenses, other operating expenses, and depreciation and amortization to arrive at station operating income, a non-GAAP measure Reconciliation of GAAP Operating Income to Station Operating Income (Amounts in 000's) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Operating income (loss) | $1,409 | $2,143 | $(889) | $(274) | | Plus: Corporate general and administrative | 3,074 | 3,004 | 6,241 | 6,087 | | Plus: Other operating expense, net | 253 | 6 | 307 | 977 | | Plus: Depreciation and amortization | 1,267 | 1,258 | 2,507 | 2,365 | | Station operating income | $6,003 | $6,411 | $8,166 | $9,155 | [Reconciliation of GAAP Net Income to Trailing 12-Month Consolidated EBITDA](index=9&type=section&id=Reconciliation_GAAP_Net_Income_to_Trailing_12_Month_Consolidated_EBITDA) The reconciliation details the adjustments from GAAP net income (loss) to arrive at trailing 12-month consolidated EBITDA, which stood at $9.6 million as of June 30, 2025, resulting in a leverage ratio of 0.52 Reconciliation of GAAP Net Income to Trailing 12-Month Consolidated EBITDA (Amounts in 000's) | Metric | Trailing 12 Months Ended June 30, 2025 | | :------------------------------------------ | :------------------------------------- | | Net income (loss) | $2,089 | | Total exclusions (Gain/loss on sale of assets, Other income) | $999 | | Consolidated adjusted net income (loss) | $1,090 | | Plus: Interest expense | $448 | | Plus: Income tax (benefit) expense | $535 | | Plus: Depreciation & amortization expense | $5,420 | | Plus: Non-cash compensation | $2,107 | | Trailing twelve month consolidated EBITDA | $9,600 | | Total long-term debt, including current maturities | $5,000 | | Leverage ratio | 0.52 | [Reconciliation of Actual to Same Station Operating Income](index=10&type=section&id=Reconciliation_Actual_to_Same_Station_Operating_Income) This reconciliation provides a detailed breakdown of adjustments made to actual operating results to derive same station operating income, accounting for acquisitions and dispositions not included in the entire comparable period Reconciliation of Actual to Same Station Operating Income (Three Months Ended June 30, Amounts in 000's) | Metric | Actual 2025 | Adjustments for Acquisitions and Dispositions | Same Station 2025 | Actual 2024 | Adjustments for Acquisitions and Dispositions | Same Station 2024 | | :------------------------ | :---------- | :-------------------------------------------- | :---------------- | :---------- | :-------------------------------------------- | :---------------- | | Net operating revenue | $28,229 | $(654) | $27,575 | $29,716 | $(258) | $29,458 | | Station operating expense | 22,226 | (570) | 21,656 | 23,305 | (180) | 23,125 | | Corporate G&A | 3,074 | - | 3,074 | 3,004 | (1) | 3,003 | | Depreciation & amortization | 1,267 | (109) | 1,158 | 1,210 | (48) | 1,210 | | Other operating expense, net | 253 | - | 253 | 6 | - | 6 | | Operating income | $1,409 | $25 | $1,434 | $2,143 | $(29) | $2,114 | Reconciliation of Actual to Same Station Operating Income (Six Months Ended June 30, Amounts in 000's) | Metric | Actual 2025 | Adjustments for Acquisitions and Dispositions | Same Station 2025 | Actual 2024 | Adjustments for Acquisitions and Dispositions | Same Station 2024 | | :------------------------ | :---------- | :-------------------------------------------- | :---------------- | :---------- | :-------------------------------------------- | :---------------- | | Net operating revenue | $52,441 | $(1,247) | $51,194 | $55,010 | $(268) | $54,742 | | Station operating expense | 44,189 | (1,191) | 42,998 | 45,580 | (184) | 45,580 | | Corporate G&A | 6,241 | - | 6,241 | 6,087 | - | 6,087 | | Depreciation & amortization | 2,593 | (252) | 2,341 | 2,408 | (48) | 2,408 | | Other operating expense, net | 307 | - | 307 | 977 | - | 977 | | Operating loss | $(889) | $196 | $(693) | $(274) | $(36) | $(310) |

Core Insights - Saga Communications, Inc. reported a net revenue decrease of 5.0% to $28.2 million for Q2 2025 compared to $29.7 million in Q2 2024 [1] - The company experienced a net loss of $447 thousand for the six-month period ended June 30, 2025, compared to a net income of $924 thousand for the same period last year [3][21] - Operating income for Q2 2025 was $1.4 million, down from $2.1 million in Q2 2024, while station operating income decreased by 6.4% to $6.0 million [1][15] Financial Performance - For the quarter ended June 30, 2025, net revenue on a same station basis decreased by 6.4% to $27.6 million, with station operating expenses also down by 6.4% to $21.7 million [2] - For the six-month period, net revenue decreased by 4.7% to $52.4 million, while station operating expenses decreased by 3.4% to $44.2 million [3][4] - The company reported diluted earnings per share of $0.18 for Q2 2025, compared to $0.40 for Q2 2024 [15][21] Capital Expenditures and Dividends - Capital expenditures for Q2 2025 were $1.3 million, down from $1.5 million in Q2 2024, and for the six-month period, capital expenditures totaled $2.0 million compared to $2.6 million last year [1][3] - The company paid a quarterly dividend of $0.25 per share on June 27, 2025, totaling approximately $1.6 million, and has paid over $138 million in dividends since 2012 [6] Strategic Initiatives - Saga is in non-binding negotiations to sell some of its tower sites, with anticipated proceeds in the high 7 figure or low 8 figure range, and is also assessing the sale of other non-core assets [7] - The company plans to use a portion of the proceeds from asset sales to fund stock buybacks [7] Balance Sheet - As of June 30, 2025, the company had $24.9 million in cash and short-term investments, which increased to $27.3 million by August 4, 2025 [8] - The company expects to spend approximately $3.0 to $3.5 million on capital expenditures during 2025 [8]

Core Points - Saga Communications, Inc. will release its Q2 2025 results on August 7, 2025, at 9:00 a.m. EDT, followed by a conference call at 11:00 a.m. EDT [1] - The company encourages inquiries to be submitted via email by 10:00 a.m. EDT on the same day for discussion during the conference call [1] - The earnings release will include non-GAAP financial measures such as station operating income and trailing 12-month consolidated EBITDA, with reconciliations to GAAP measures provided [2] - Saga operates in 28 markets with a portfolio of 82 FM and 32 AM radio stations, focusing on expanding its core radio business through digital and e-commerce initiatives [3]

Core Viewpoint - The article highlights the importance of value investing and identifies Saga Communications (SGA) as a strong value stock based on its financial metrics and Zacks Rank [4][6]. Company Metrics - Saga Communications (SGA) holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4]. - The current P/E ratio of SGA is 21.27, significantly lower than the industry average P/E of 30.04, suggesting that SGA may be undervalued [4]. - Over the past 52 weeks, SGA's Forward P/E has fluctuated between a high of 99.23 and a low of 8.80, with a median of 25.54 [4]. Cash Flow Analysis - SGA has a P/CF ratio of 8.72, which is attractive compared to the industry's average P/CF of 19.51, indicating a favorable cash outlook [5]. - In the past 12 months, SGA's P/CF has ranged from a high of 9.13 to a low of 6.75, with a median of 8.13 [5]. Investment Outlook - The combination of SGA's strong earnings outlook and favorable valuation metrics positions it as an impressive value stock at the moment [6].

Core Insights - The focus is on the Zacks Rank system, which emphasizes earnings estimates and revisions to identify strong stocks [1] - Value investing is highlighted as a preferred method for finding undervalued stocks across various market conditions [2] - The Style Scores system developed by Zacks identifies stocks with specific traits, particularly those with high grades in the Value category [3] Company Analysis: Saga Communications (SGA) - Saga Communications currently holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong investment potential [4] - The stock has a P/E ratio of 20.97, significantly lower than the industry average of 30.28, suggesting it may be undervalued [4] - Over the past year, SGA's Forward P/E has fluctuated between 8.80 and 99.23, with a median of 25.54, indicating volatility in valuation [4] - SGA's P/CF ratio stands at 8.43, compared to the industry's average of 19.61, further supporting the notion of undervaluation [5] - The P/CF ratio has varied from a low of 6.75 to a high of 9.13 over the past year, with a median of 8.10, reflecting stable cash flow metrics [5] - The combination of SGA's strong earnings outlook and favorable valuation metrics positions it as an impressive value stock [6]