GROSSE POINTE FARMS, Mich., April 14, 2025 (GLOBE NEWSWIRE) -- Saga Communications, Inc. (Nasdaq: SGA) announced today that it will release its 1st Quarter 2025 results at 9:00 a.m. EDT on Thursday, May 8, 2025. The company will be holding a conference call on the same date at 11:00 a.m. EDT. The dial-in numbers are as follows: Domestic and International Dial-in Number: (973) 528-0008 Conference Entry Code: 530273 The Company requests that all parties that have a question that they would like to submit to ...

Financial Data and Key Metrics Changes - For Q4 2024, net revenue decreased by 1.3% to $28.8 million compared to $29.1 million last year, with political revenue impacting performance [22] - Operating income was $984,000, and net income for the quarter was $1.3 million or $0.20 per fully diluted share [24] - For the full year, net revenue decreased by 2.2% to $110.3 million compared to $112.8 million last year [25] Business Line Data and Key Metrics Changes - Interactive revenue, which includes online news, grew by 20.9% to $11.6 million for the year and by 19.5% to $3 million for Q4 [33] - E-commerce revenue increased by $904,000 to $2.4 million for the year and by $55,000 to $569,000 for Q4 [34] - Station operating expenses increased by 4.5% for the year to $94.3 million, with a notable increase in compensation-related expenses [26][29] Market Data and Key Metrics Changes - The U.S. advertising market is projected to grow from $421 billion in 2024 to $456 billion in 2025, with digital advertising expected to account for 75% of that spend [8] - Radio's share of digital advertising remains low at 0.67%, indicating a need for improvement in capturing digital ad dollars [7] Company Strategy and Development Direction - The company is focusing on a blended advertising strategy that integrates radio, search, and display to enhance effectiveness and capture a larger share of digital advertising [12][51] - The strategy aims to disrupt the local digital advertising market, which is seen as fragmented and confusing, by providing simpler and clearer solutions [10][11] - The company plans to invest in existing infrastructure rather than starting anew, which is expected to accelerate growth [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a challenging advertising environment but expresses optimism for improvement in the second half of the year [62] - The company expects revenue growth to turn positive starting in Q2 2025, driven by ongoing digital initiatives [38] Other Important Information - The company paid a quarterly dividend of $0.25 per share, totaling approximately $1.6 million for each payment [35] - As of December 31, 2024, the company had $27.8 million in cash and short-term investments [36] Q&A Session Summary Question: Current advertising market trends in Q1 - Management noted that January and February were down high single digits, while March showed improvement with a decline in mid-single digits [60] Question: Consideration of central casting to reduce costs - Management confirmed that massive cuts are not planned and emphasized the importance of their workforce [64] Question: Changes in digital strategy - Management reiterated that radio improves as digital improves and highlighted the ongoing transformational strategic plan [66]

Revenue Performance - Net revenue decreased 1.3% to $28.8 million for Q4 2024 compared to $29.1 million in Q4 2023[1] - For the twelve-month period ended December 31, 2024, net revenue decreased 2.2% to $110.3 million compared to $112.8 million in 2023[3] - Net operating revenue for the three months ended December 31, 2024, was $28,770,000, a decrease of 1.3% compared to $29,145,000 for the same period in 2023[18] - For the twelve months ended December 31, 2024, net operating revenue was $110,294,000, a decrease of 2.2% from $112,773,000 in 2023[22] - The company experienced a decrease in same station net operating revenue of 3.9% for the twelve months ended December 31, 2024, compared to the previous year[30] Operating Income - Operating income for Q4 2024 was $984 thousand, down 64.8% from $2.8 million in Q4 2023[1] - Operating income for the three months ended December 31, 2024, was $984,000, down 64.8% from $2,795,000 in the same period of 2023[18] - Operating income for the twelve months ended December 31, 2024, was $2,355,000, significantly lower than $11,488,000 in 2023[22] - Operating income for the twelve months ended December 31, 2024, was $2,355 million, down 79.5% from $11,488 million for the same period in 2023[30] - The company reported a same station operating income of $1,033 million for the three months ended December 31, 2024, compared to $2,795 million for the same period in 2023, reflecting a decline of 63.1%[30] Net Income - Net income for the twelve-month period was $3.5 million, down from $9.5 million in 2023[3] - Net income for the three months ended December 31, 2024, was $1,269,000, a decline of 49.2% compared to $2,501,000 for the same period in 2023[18] - Net income for the twelve months ended December 31, 2024, was $3,460,000, down from $9,500,000 in 2023, representing a decline of 63.6%[22] Earnings Per Share - Diluted earnings per share were $0.20 for Q4 2024, compared to $0.40 in Q4 2023[1] - Basic and diluted earnings per share for the three months ended December 31, 2024, were both $0.20, down from $0.40 in the same period of 2023[18] - Basic and diluted earnings per share for the twelve months ended December 31, 2024, were both $0.55, compared to $1.55 in 2023[22] Expenses - Station operating expense increased 4.1% to $24.3 million for Q4 2024 compared to the same period last year[1] - Station operating expense for the twelve-month period increased 4.5% to $94.3 million compared to the previous year[3] - Station operating expense for the three months ended December 31, 2024, was $24,297 million, an increase of 4.1% from $23,329 million for the same period in 2023[30] - The total station operating expense for the twelve months ended December 31, 2024, was $94,280 million, an increase of 4.5% from $90,199 million for the same period in 2023[30] - Corporate general and administrative expenses for the twelve months ended December 31, 2024, increased to $12,611 million, up 15% from $10,966 million for the same period in 2023[30] Cash and Investments - As of December 31, 2024, the company had $27.8 million in cash and short-term investments[6] Capital Expenditures - Capital expenditures for 2024 were $3.8 million, down from $4.4 million in 2023[3] Debt and Leverage - Total long-term debt, including current maturities, was $5,000,000, with a leverage ratio of 0.46 based on trailing twelve-month consolidated EBITDA of $10,978,000[27] Depreciation and Amortization - Depreciation and amortization for radio stations for the twelve months ended December 31, 2024, was $5,070,000, an increase from $4,854,000 in 2023[22] Other Income - Other operating income for the twelve months ended December 31, 2024, was $1,048 million, significantly higher than $120 million for the same period in 2023[30] Adjustments - Adjustments for acquisitions and dispositions impacted the same station operating income by $49 million for the three months ended December 31, 2024[30]

Core Points - Saga Communications, Inc. reported a net revenue decrease of 1.3% to $28.8 million for Q4 2024 compared to $29.1 million in Q4 2023 [1] - Operating income for Q4 2024 was $984 thousand, down from $2.8 million in the same quarter last year, representing a decline of 63% [2][1] - For the full year 2024, net revenue decreased by 2.2% to $110.3 million compared to $112.8 million in 2023 [3] - The company experienced a significant drop in net income for the year, reporting $3.5 million compared to $9.5 million in 2023 [3][4] Financial Performance - Station operating expenses increased by 4.1% to $24.3 million in Q4 2024, while for the full year, they rose by 4.5% to $94.3 million [1][3] - Diluted earnings per share for Q4 2024 were $0.20, down from $0.40 in Q4 2023 [1][15] - Capital expenditures for Q4 2024 were $600 thousand, a decrease from $1.0 million in the same period last year, and total capital expenditures for the year were $3.8 million compared to $4.4 million in 2023 [1][3] Dividends and Cash Position - The company paid a quarterly dividend of $0.25 per share on December 13, 2024, and another on March 7, 2025, totaling approximately $1.6 million for each payment [5] - As of December 31, 2024, Saga had $27.8 million in cash and short-term investments, which slightly decreased to $27.3 million by March 10, 2025 [6] Market Position and Strategy - Saga Communications operates in 28 markets with a focus on radio broadcasting, owning 82 FM and 31 AM stations [12] - The company aims to expand its business model to include digital, e-commerce, and local online news services, complementing its core radio operations [12]

Core Viewpoint - Saga Communications, Inc. is actively executing its strategic plan to enhance shareholder value and improve financial performance ahead of its earnings call on March 11, 2025 [1][5]. Company Overview - Founded in 1986, Saga focuses on acquiring, developing, and operating broadcast properties, with a current portfolio of 82 FM radio stations, 31 AM radio stations, and 79 metro signals across 28 markets [2][8]. - The company aims to build positive relationships with audiences and clients while delivering robust value to shareholders [2]. Strategic Actions - Saga's management is committed to improving financial results and profitability through various strategic actions, including: - Prioritizing a cost-effective digital strategy tailored to consumer needs in a disruptive digital advertising market [5]. - Aligning costs and operating verticals to enhance profitability without compromising core strengths [5]. - Enhancing corporate governance and refreshing the Board of Directors by recruiting members with significant digital marketing experience [5]. - Evaluating non-core asset sales and stock repurchases to maximize value and enhance shareholder returns [5]. Shareholder Engagement - The company is engaging with its largest shareholder, TowerView LLC, and other investors to ensure alignment on strategic direction [3]. - Saga is addressing a nomination from Gate City Capital Management for four candidates to stand for election to the Board, emphasizing the importance of shareholder perspectives while contesting Gate City's understanding of the business and strategy [4][6]. Upcoming Events - Saga will provide an extensive update on its performance and strategy during the earnings call scheduled for March 11, 2025 [5].

Core Points - Saga Communications, Inc. will release its 4th Quarter and Year End 2024 results on March 11, 2025, at 9:00 a.m. EST [1] - A conference call will follow at 11:00 a.m. EST on the same day to discuss the earnings and other relevant inquiries [1][2] - The earnings release will include non-GAAP financial measures such as station operating income and trailing 12-month consolidated EBITDA [3] Company Overview - Saga is a media company focused on acquiring, developing, and operating broadcast properties, with an increasing emphasis on digital, e-commerce, and non-traditional revenue initiatives [4] - The company operates in 28 markets, owning or operating 82 FM and 31 AM radio stations, along with 79 metro signals [4] Strategic Initiatives - The company is executing an ongoing digital strategy and evaluating non-core asset sales to utilize proceeds for buybacks, dividends, and other corporate purposes [5] - Plans are in place to refresh the board and assess market and corporate level expenses to align with the company's operating verticals [5]

Financial Data and Key Metrics Changes - For the quarter ended September 30, 2024, net revenue decreased 3.5% to $28.1 million compared to $29.1 million last year [19] - Station operating income for the quarter was $6 million, and net income was $1.3 million, or $0.20 per fully diluted share [19] - For the nine-month period ended September 30, 2024, net revenue decreased 2.5% to $81.5 million [21] Business Line Data and Key Metrics Changes - Digital advertising growth showed a slower rate in the third quarter compared to previous quarters, attributed to the termination of a relationship with a non-profitable digital services partner [23][24] - E-commerce revenue increased by 33% for the quarter and 89% for the nine-month period [26] - NTR events revenue was up 11% for the quarter and 1.5% for the nine-month period [27] Market Data and Key Metrics Changes - Political revenue for the quarter was $677,000, compared to $234,000 for the same period last year, indicating a significant increase [19] - Political revenue for the year as of November 5, 2024, totaled $3.3 million, with expectations of $2 million for the fourth quarter [31] Company Strategy and Development Direction - The company is focusing on expanding its digital footprint and implementing a blended advertising philosophy to enhance local advertisers' results [11][13] - Strategic investments are being made in staff training and product offerings, including e-commerce and online news [25][32] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the turbulent economic environment, citing layoffs in various sectors and challenges faced by advertising partners [4][49] - The company expects station operating expenses to increase by approximately 3% to 5% for the year compared to 2023, driven by inflation and investments in staff and training [32] Other Important Information - Capital expenditures for the quarter were $625,000, with expectations to spend between $4 million and $4.6 million for the year [29][30] - The company has paid over $133 million in dividends to shareholders since 2012, with a quarterly dividend of $0.25 per share paid during the quarter [30] Q&A Session Summary Question: What are the headwinds faced in growing the digital business? - Management identified time, talent, training, and speed as key challenges in catching up in the digital space [45][46][47] Question: What is the outlook for the advertising market in Q4? - Management noted both positive and negative aspects, including layoffs in the automotive sector and the impact on advertising budgets [48][49]

Financial Performance - Net revenue decreased 3.5% to $28.1 million for Q3 2024 compared to $29.1 million in Q3 2023[1] - Operating income for Q3 2024 was $1.6 million, down 54.3% from $3.5 million in Q3 2023[1] - Net income for Q3 2024 was $1.3 million, a decrease of 52.0% from $2.7 million in Q3 2023[1] - For the nine-month period ended September 30, 2024, net revenue decreased 2.5% to $81.5 million compared to $83.6 million in the same period last year[3] - Operating income for the nine months ended September 30, 2024, was $1,371,000, a significant drop from $8,693,000 in the prior year[19] - Net income for the nine months ended September 30, 2024, was $2,191,000, down from $6,999,000 in the same period of 2023[19] Earnings Per Share - Diluted earnings per share were $0.20 in Q3 2024, down from $0.45 in Q3 2023[15] - Basic and diluted earnings per share for the three months ended September 30, 2024, were both $0.20, down from $0.45 in the same period last year[18] - Basic and diluted earnings per share for the nine months ended September 30, 2024, were both $0.35, compared to $1.15 in the same period last year[19] Operating Expenses - Station operating expense increased 3.1% to $23.5 million for Q3 2024 compared to the same period last year[1] - Station operating expense for the nine-month period increased 4.7% to $70.0 million compared to the same period last year[3] - Corporate general and administrative expenses for the nine months ended September 30, 2024, were $9,144,000, up from $7,940,000 in the same period last year[19] - Corporate general and administrative expenses for the three months ended September 30, 2024, were $2,966,000, slightly higher than $2,852,000 in the same period of 2023, an increase of 4%[20] Capital Expenditures - Capital expenditures for Q3 2024 were $625 thousand, down from $760 thousand in Q3 2023[1] - The company incurred capital expenditures of $625,000 for the three months ended September 30, 2024, down from $760,000 in the same period of 2023, a decrease of 17.7%[20] Cash and Investments - As of September 30, 2024, the company had $28.7 million in cash and short-term investments[6] Debt and Leverage - Total long-term debt as of September 30, 2024, was $5,000,000, resulting in a leverage ratio of 0.39 based on trailing twelve-month consolidated EBITDA of $12,714,000[21] Depreciation and Amortization - Depreciation and amortization for radio stations for the nine months ended September 30, 2024, was $3,690,000, an increase from $3,599,000 in the same period of 2023[19] - Depreciation and amortization expense for the nine months ended September 30, 2024, totaled $3,690,000, compared to $3,599,000 in the same period of 2023, an increase of 2.5%[20] Other Operating Expenses - Other operating expense, net, for the three months ended September 30, 2024, was $49,000, compared to $45,000 in the same period of 2023, a slight increase of 8.9%[20] Compensation Expenses - Compensation expense related to restricted stock awards for the three months ended September 30, 2024, was $474,000, up from $250,000 in the same period of 2023, an increase of 89.6%[20]

Revenue and Income - For the six months ended June 30, 2024, approximately 90% of the radio stations' gross revenue was from local advertising, compared to 89% for the same period in 2023[82]. - Net operating revenue for the three months ended June 30, 2024, was $28,742,000, a decrease of 1.5% from $29,175,000 in the same period of 2023[94]. - Operating income for the three months ended June 30, 2024, was $2,143,000, reflecting a significant decrease of 50.1% compared to $4,296,000 in the same period of 2023[94]. - Net income for the three months ended June 30, 2024, was $2,501,000, down 25.3% from $3,350,000 in the same period of 2023[94]. - Consolidated net operating revenue for Q2 2024 was $28,742,000, a decrease of $433,000 or 1.5% compared to Q2 2023[96]. - Net income for Q2 2024 was $2,501,000 ($0.40 per share), a decrease of $849,000 from $3,350,000 ($0.55 per share) in Q2 2023[99]. - For the six months ended June 30, 2024, net operating revenue was $53,406,000, down $1,073,000 or 2.0% from $54,479,000 in the same period of 2023[102]. - The company reported an operating loss of $274,000 for the first half of 2024, a decrease of $5,475,000 from operating income of $5,201,000 in the same period of 2023[104]. - Net income for the first half of 2024 was $924,000 ($0.15 per share), down $3,346,000 from $4,270,000 ($0.70 per share) in the first half of 2023[105]. Expenses and Costs - Station operating expenses increased by 5.1% to $23,544,000 for the three months ended June 30, 2024, compared to $22,407,000 in the same period of 2023[94]. - Station operating expenses for the first half of 2024 were $46,525,000, an increase of $2,415,000 or 5.5% compared to the first half of 2023[103]. - Interest expense increased by 65.1% to $71,000 for the three months ended June 30, 2024, compared to $43,000 in the same period of 2023[94]. Market and Advertising - The company expects political revenue in 2024 to increase from 2023 levels due to more elections at national, state, and local levels[83]. - The five largest markets represented approximately 36% of consolidated net operating revenue for the six months ended June 30, 2024[91]. - The company continues to expand its digital initiatives to enhance advertising opportunities and audience engagement[89]. Cash Flow and Capital Expenditures - Cash flows from operating activities for the first half of 2024 were $5,047,000, compared to $6,038,000 in the same period of 2023[110]. - Capital expenditures for the six months ended June 30, 2024, were $2.574 million, with an anticipated range of $5.0 million to $5.5 million for the full year 2024[113]. Acquisitions and Debt - The company had $5,000,000 of debt outstanding at June 30, 2024, related to the Lafayette acquisition[109]. - The company completed the acquisition of radio assets for $5.3 million on May 31, 2024, financed through operations and borrowings totaling $5.85 million[113]. - Future acquisitions and dividend payments are expected to be financed through operations, borrowings, or a combination thereof, with no assurance of availability on acceptable terms[114]. - The company has future cash obligations under various contracts, which will be financed through operations or additional borrowings[115]. Dividends - Dividends declared in 2024 totaled $1.10 per share, amounting to approximately $6.9 million, compared to $3.00 per share and approximately $18.6 million in 2023[114]. Inflation and Market Risk - Inflation has not significantly impacted operations to date, but rising costs of goods and services are being observed[116]. - There have been no material changes to the market risk information included in the 2023 annual report[117].

Financial Data and Key Metrics Changes - For Q2 2024, net revenue decreased by 1.5% to $28.7 million compared to $29.2 million in the same period last year [9] - Station operating expense increased by 5.1% to $23.5 million for the quarter [9] - Net income for Q2 was $2.5 million or $0.40 per fully diluted share [9] - For the six-month period ended June 30, 2024, net revenue decreased by 2% to $53.4 million compared to $54.5 million last year [11] - Station operating income for the six months was $9.2 million, with net income of $900,000 or $0.15 per fully diluted share [11][12] Business Line Data and Key Metrics Changes - Digital or interactive revenue increased by $822,000 or 33.4% year-over-year [6] - E-commerce revenue surged by $348,000 or 98.5% year-over-year [6] - Streaming revenue rose by $382,000 or 34% [6] - New service revenue increased by $344,000 or 159% for the quarter [7] Market Data and Key Metrics Changes - The categories that experienced the largest decline included restaurants, recruitment, automotive, and grocery [3] - Political revenue for Q2 was $288,000, up from $108,000 in the same period last year [9] - Political revenue for the six-month period was $598,000 compared to $301,000 last year [11] Company Strategy and Development Direction - The company is focusing on transformational change and growth, particularly in the online news and community sites [20][24] - Emphasis on hyper-local news to connect with communities and create advertising opportunities [21][22] - Plans to strategically invest in operations to grow specific revenue types, including local and national, interactive, and e-commerce [15] Management's Comments on Operating Environment and Future Outlook - Management noted that the current economic environment is impacting local advertisers, particularly those spending $2,000 to $4,000 per month [4][29] - There is an expectation that these advertisers will return, but the timing is uncertain [29] - The company anticipates a soft pacing for Q3, down mid-single digits, but expects improvement [17] Other Important Information - Capital expenditures for Q2 were $1.5 million, with expectations to spend between $5 million and $5.5 million for the year [15] - The company has $24.1 million in cash and short-term investments as of June 30, 2024 [16] - A quarterly dividend of $0.26 per share was paid, totaling approximately $1.6 million [16] Q&A Session Summary Question: What are you hearing from your local advertisers regarding advertising trends? - Management indicated that local advertisers are holding back due to economic conditions but expect them to return [29] Question: What struggles have you experienced with your digital offerings? - Management highlighted the need for speed in execution and expressed confidence in the runway for current service offerings [30] Question: Can you discuss capital allocation and stock repurchases? - Management stated that capital allocation is continuously evaluated, and while buybacks are not currently part of the plan, they may be considered in the future [31]