Core Insights - The article emphasizes the importance of value investing, which focuses on identifying undervalued companies in the market [2] - Zacks has developed a Style Scores system to help investors find stocks with specific traits, particularly in the Value category [3] - Saga Communications (SGA) is highlighted as a strong value stock, currently holding a Zacks Rank of 2 (Buy) and an A grade for Value [4] Company Metrics - SGA has a Forward P/E ratio of 21.30, significantly lower than the industry average of 29.47 [4] - The stock's Forward P/E has fluctuated between a high of 99.23 and a low of 8.80 over the past year, with a median of 25.54 [4] - SGA's P/CF ratio stands at 8.21, compared to the industry's average P/CF of 17.68, indicating a solid cash outlook [5] - Over the past year, SGA's P/CF has ranged from a high of 10.42 to a low of 6.75, with a median of 8.13 [5] Investment Outlook - The metrics suggest that Saga Communications is likely undervalued, making it an attractive option for value investors [6] - The strength of SGA's earnings outlook further supports its position as one of the market's strongest value stocks [6]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) Presents the unaudited interim financial statements and management's analysis of financial condition and results of operations [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements and accompanying notes for the reporting period [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20consolidated%20balance%20sheets%20%E2%80%94%20March%2031%2C%202025%20and%20December%2031%2C%202024) Details the company's assets, liabilities, and shareholders' equity at the end of the reporting period **Condensed Consolidated Balance Sheets (In thousands)** | Item | March 31, 2025 | December 31, 2024 | Change (QoQ) | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $17,947 | $18,860 | $(913) | | Total current assets | $45,606 | $47,086 | $(1,480) | | Net property and equipment | $51,337 | $51,907 | $(570) | | Total assets | $219,305 | $221,725 | $(2,420) | | Total current liabilities | $16,768 | $16,558 | $210 | | Total liabilities | $55,745 | $55,803 | $(58) | | Total shareholders' equity | $163,560 | $165,922 | $(2,362) | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20consolidated%20statements%20of%20operations%20%E2%80%94%20Three%20months%20ended%20March%2031%2C%202025%20and%202024) Summarizes revenues, expenses, and the resulting net loss for the three-month period **Condensed Consolidated Statements of Operations (In thousands, except per share data)** | Item | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Net operating revenue | $24,212 | $25,294 | $(1,082) | | Station operating expenses | $21,963 | $22,459 | $(496) | | Corporate general and administrative | $3,167 | $3,083 | $84 | | Operating loss | $(2,298) | $(2,417) | $119 | | Net loss | $(1,575) | $(1,577) | $2 | | Basic loss per share | $(0.25) | $(0.25) | $0 | | Diluted loss per share | $(0.25) | $(0.25) | $0 | | Dividends declared per share | $0.25 | $0.25 | $0 | [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20consolidated%20statements%20of%20stockholders'%20equity%20%E2%80%93%20Three%20months%20ended%20March%2031%2C%202025%20and%202024) Reports the changes in the value of stockholders' equity over the three-month period **Changes in Stockholders' Equity (In thousands)** | Item | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net loss | $(1,575) | $(1,577) | | Dividends declared per common share | $(1,604) | $(5,321) | | Compensation expense related to restricted stock awards | $527 | $453 | | 401(k) plan contribution | $290 | $268 | | Balance at March 31, 2025 | $163,560 | $164,372 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20consolidated%20statements%20of%20cash%20flows%20%E2%80%94%20Three%20months%20ended%20March%2031%2C%202025%20and%202024) Outlines the cash inflows and outflows from operating, investing, and financing activities **Condensed Consolidated Statements of Cash Flows (In thousands)** | Item | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $1,364 | $3,803 | $(2,439) | | Net cash (used in) provided by investing activities | $(673) | $860 | $(1,533) | | Net cash used in financing activities | $(1,604) | $(14,068) | $12,464 | | Net decrease in cash and cash equivalents | $(913) | $(9,405) | $8,492 | | Cash and cash equivalents, end of period | $17,947 | $20,177 | $(2,230) | [Notes to Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20unaudited%20condensed%20consolidated%20financial%20statements) Provides detailed disclosures and explanations for the items presented in the financial statements [1. Summary of Significant Accounting Policies](index=10&type=section&id=1.%20Summary%20of%20Significant%20Accounting%20Policies) Outlines the key accounting principles and methods used in preparing the financial statements - The financial statements are prepared in accordance with GAAP for interim information and Form 10-Q instructions, not including all annual statement footnotes[20](index=20&type=chunk) - The Company owns or operates broadcast properties in 28 markets, including **82 FM and 31 AM radio stations** and 79 metro signals[22](index=22&type=chunk) - Earnings per share is calculated using the two-class method, allocating earnings to common shares and participating securities (restricted stock units)[24](index=24&type=chunk) - Held-to-maturity U.S. Treasury Bills were **$9.0 million** at March 31, 2025, and $8.9 million at December 31, 2024, recorded at amortized cost[28](index=28&type=chunk) - Allowance for credit losses increased to **$1,136,000** at March 31, 2025, from $1,071,000 at December 31, 2024[31](index=31&type=chunk) - The Company operates as one reportable business segment (Radio) across twenty-eight markets, with the CEO acting as the Chief Operating Decision Maker[33](index=33&type=chunk) **Significant Departmental Expenses (In thousands)** | Expense Category | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Programming and Technical | $7,204 | $7,179 | | Station General and Administrative | $7,152 | $7,392 | | Selling | $5,161 | $5,478 | | Interactive | $1,665 | $1,529 | | Other | $781 | $881 | | **Total Station Operating Expense** | **$21,963** | **$22,459** | [2. Recent Accounting Pronouncements](index=13&type=section&id=2.%20Recent%20Accounting%20Pronouncements) Discusses newly issued accounting standards and their potential impact on the company's financials - ASU 2023-09 (Income Taxes) is effective for annual periods beginning after January 1, 2025, requiring expanded income tax disclosures[38](index=38&type=chunk) - ASU 2024-03 (Expense Disaggregation) is effective for annual periods beginning January 1, 2027, and interim periods beginning after January 1, 2028, requiring disclosures about specific expense types[39](index=39&type=chunk) [3. Revenue](index=15&type=section&id=3.%20Revenue) Details the sources of revenue and disaggregates them by type for the reporting period - Primary revenue sources include Broadcast Advertising, Interactive Advertising (digital initiatives), and Other Revenue (concerts, events, tower rent)[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk) **Disaggregation of Revenue (In thousands)** | Type of Revenue | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Broadcast Advertising Revenue, net | $18,854 | $20,482 | $(1,628) | | Digital Advertising Revenue | $3,495 | $3,079 | $416 | | Other Revenue | $1,863 | $1,733 | $130 | | **Net Revenue** | **$24,212** | **$25,294** | **$(1,082)** | [4. Broadcast Licenses, Goodwill and Other Intangible Assets](index=17&type=section&id=4.%20Broadcast%20Licenses%2C%20Goodwill%20and%20Other%20Intangible%20Assets) Describes the company's policies for accounting for and testing impairment of intangible assets - Broadcast licenses and goodwill are evaluated for impairment annually or more frequently if triggering events occur, using discounted cash flow approaches[48](index=48&type=chunk)[49](index=49&type=chunk) - **No interim impairment tests** were necessitated during the three months ended March 31, 2025, as no triggering events were identified[51](index=51&type=chunk) - Intangible assets with finite lives are amortized using the straight-line method over their useful lives (1 to 26 years)[53](index=53&type=chunk) [5. Common Stock and Treasury Stock](index=19&type=section&id=5.%20Common%20Stock%20and%20Treasury%20Stock) Provides information on the company's stock structure, dividend rights, and share buy-back program - Following the passing of the founder, **all Class B shares automatically converted to Class A shares**; no Class B shares are currently issued or outstanding[55](index=55&type=chunk) - Shareholders are entitled to receive dividends as declared by the Board, with equal dividends for all common stock classes[56](index=56&type=chunk) - The Company has a Stock Buy-Back Program with **$17.7 million remaining authorization** as of March 31, 2025[62](index=62&type=chunk) - **No shares were repurchased** under the Stock Buy-Back Program during the three months ended March 31, 2025, or 2024[64](index=64&type=chunk) [6. Leases](index=21&type=section&id=6.%20Leases) Discloses details about the company's operating leases, including assets, liabilities, and expenses - Right-of-use (ROU) assets were **$6.6 million** at March 31, 2025, down from $6.9 million at December 31, 2024[66](index=66&type=chunk) - Lease liabilities were **$6.8 million** at March 31, 2025, down from $7.3 million at December 31, 2024[66](index=66&type=chunk) - Total lease expense for the three months ended March 31, 2025, was **$480,000**, compared to $475,000 in the prior year period[67](index=67&type=chunk) **Minimum Annual Rental Commitments (In thousands)** | Year | Amount | | :--- | :--- | | 2025 (a) | $1,357 | | 2026 | $1,805 | | 2027 | $1,622 | | 2028 | $1,200 | | 2029 | $730 | | Thereafter | $1,464 | | **Total lease payments (b)** | **$8,178** | | Less: Interest (c) | $1,344 | | **Present value of lease liabilities (d)** | **$6,834** | [7. Acquisitions and Dispositions](index=23&type=section&id=7.%20Acquisitions%20and%20Dispositions) Reports on recent acquisitions and disposals of assets, including their financial impact - In February 2025, the FCC license for WVAX-AM was canceled, resulting in a **$19,000 loss** on disposal[73](index=73&type=chunk) - In February 2024, the Company agreed to purchase assets of six radio stations in Lafayette, Indiana, for $5.3 million, closing in May 2024 for a total of **$5,832,000** including transactional costs[74](index=74&type=chunk) - In March 2024, WYSE-AM and two translators were sold for $10,000, resulting in a **$147,000 loss**[76](index=76&type=chunk) - In March 2024, the FCC license for KBAI-AM was canceled, resulting in an **$800,000 loss**[78](index=78&type=chunk) **Pro Forma Consolidated Results of Operations (In thousands, except per share data)** | Item | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net operating revenue | $24,212 | $25,922 | | Operating loss | $(2,298) | $(2,454) | | Net loss | $(1,575) | $(1,654) | | Basic loss per share | $(0.25) | $(0.26) | | Diluted loss per share | $(0.25) | $(0.26) | [8. Income Taxes](index=26&type=section&id=8.%20Income%20taxes) Explains the calculation of the income tax benefit and the effective tax rate for the period - An income tax benefit of **$585,000** was recorded for Q1 2025, compared to $580,000 for Q1 2024[84](index=84&type=chunk) - The effective tax rate was approximately **27.1%** for Q1 2025, slightly up from 26.9% for Q1 2024[84](index=84&type=chunk) [9. Stock-Based Compensation](index=27&type=section&id=9.%20Stock-Based%20Compensation) Details the company's incentive compensation plans and related expenses for stock-based awards - The 2023 Incentive Compensation Plan replaced the Second Restated 2005 Plan, authorizing up to **600,000 shares** of Class A Common Stock for awards[88](index=88&type=chunk) - Total compensation expense related to restricted stock-based arrangements was **$527,000** for Q1 2025, up from $453,000 for Q1 2024[93](index=93&type=chunk) - **No stock options** were granted or outstanding during 2025 or 2024[89](index=89&type=chunk) [10. Long-Term Debt](index=29&type=section&id=10.%20Long-Term%20Debt) Outlines the terms of the company's credit facility and its outstanding debt obligations - Long-term debt from the revolving credit facility remained at **$5,000,000** at both March 31, 2025, and December 31, 2024[94](index=94&type=chunk) - The Credit Facility's maturity date was extended to **December 19, 2027**, with interest rates based on SOFR (4.41% at March 31, 2025) plus a spread[94](index=94&type=chunk)[97](index=97&type=chunk) - The Company had approximately **$45 million of unused borrowing capacity** under the Revolving Credit Facility at March 31, 2025, and December 31, 2024[98](index=98&type=chunk) [11. Litigation](index=31&type=section&id=11.%20Litigation) States the company's position on any material legal proceedings - Management believes the Company is not a party to any current legal proceedings material to its financial condition[100](index=100&type=chunk) [12. Dividends](index=31&type=section&id=12.%20Dividends) Describes the company's dividend policy and payments made during the period - A quarterly cash dividend of approximately **$1.6 million** was paid in Q1 2025[101](index=101&type=chunk) - In 2024, the Company declared four quarterly cash dividends and a variable dividend totaling **$1.60 per share**, amounting to approximately $10.0 million[101](index=101&type=chunk) - The Company intends to declare regular quarterly and variable cash dividends, and may implement stock buybacks, subject to Board discretion and financial performance[102](index=102&type=chunk) [13. Commitments and Contingencies](index=31&type=section&id=13.%20Commitments%20and%20Contingencies) Discloses known commitments and potential liabilities not yet recorded on the balance sheet - The Company accrued necessary expenses related to the passing of its founder, Edward K. Christian, including a **$500,000 income tax obligation** for his estate in Q4 2024[103](index=103&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial condition and operational results [Cautionary Note Regarding Forward-Looking Statements](index=32&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) Warns that forward-looking statements are subject to risks and uncertainties - The report contains forward-looking statements subject to risks and uncertainties, and **actual results may differ materially** from forecasts[105](index=105&type=chunk) - Future factors include adverse changes in interest rates, financial leverage, dependence on key personnel/stations, economic conditions, market volatility, competition, regulatory changes, technological advances, cyber-attacks, and geopolitical events[105](index=105&type=chunk) [Introduction](index=32&type=section&id=Introduction) Provides context for the Management's Discussion and Analysis section - The discussion should be read in conjunction with the unaudited condensed consolidated financial statements and the annual report on Form 10-K[106](index=106&type=chunk) [Critical Accounting Policies and Estimates](index=32&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Highlights the most significant accounting policies and estimates used by management - **No significant changes** to critical accounting policies were made since the December 31, 2024, annual report[107](index=107&type=chunk) - The Company uses non-GAAP financial measures like 'station operating income' to assess market performance, which is not a substitute for GAAP results[108](index=108&type=chunk)[109](index=109&type=chunk) [Financial Condition and Results of Operations](index=34&type=section&id=Financial%20Condition%20and%20Results%20of%20Operations) Analyzes the company's business operations, revenue sources, and market performance - Saga Communications is a media company primarily engaged in acquiring, developing, and operating broadcast properties, including **82 FM and 31 AM radio stations** and 79 metro signals in 28 markets[110](index=110&type=chunk) - Radio stations' primary revenue comes from advertising sales, with approximately **90% from local advertising** for the three months ended March 31, 2025 and 2024[111](index=111&type=chunk)[112](index=112&type=chunk) - Advertising expenditures are typically lowest in the first quarter, and political revenue is expected to decrease in 2025 due to fewer elections[113](index=113&type=chunk) - The Company's digital strategy focuses on 'Blended Advertising' to provide simple digital solutions (SEM, SEO, Targeted Display) in conjunction with radio for local advertisers[121](index=121&type=chunk) **Percentage of Consolidated Net Operating Revenue by Key Market** | Market | Q1 2025 | Q1 2024 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | Charleston, South Carolina | 6 % | 7 % | 6 % | 6 % | | Columbus, Ohio | 7 % | 8 % | 8 % | 9 % | | Des Moines, Iowa | 4 % | 5 % | 5 % | 5 % | | Milwaukee, Wisconsin | 12 % | 11 % | 12 % | 11 % | | Norfolk, Virginia | 5 % | 5 % | 5 % | 6 % | | **Combined Top 5 Markets** | **34 %** | **36 %** | **36 %** | **37 %** | **Percentage of Consolidated Station Operating Income by Key Market** | Market | Q1 2025 | Q1 2024 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | Charleston, South Carolina | 9 % | 10 % | 7 % | 5 % | | Columbus, Ohio | — % | 6 % | 5 % | 10 % | | Des Moines, Iowa | (5)% | 2 % | 3 % | 4 % | | Milwaukee, Wisconsin | 31 % | 15 % | 17 % | 12 % | | Norfolk, Virginia | 2 % | 5 % | 5 % | 9 % | | **Combined Top 5 Markets** | **37 %** | **38 %** | **37 %** | **40 %** | [Three Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024](index=37&type=section&id=Three%20Months%20Ended%20March%2031%2C%202025%20Compared%20to%20Three%20Months%20Ended%20March%2031%2C%202024) Provides a comparative analysis of financial performance for the current and prior-year quarters **Key Financial Performance Comparison (In thousands, except percentages and per share information)** | Item | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net operating revenue | $24,212 | $25,294 | $(1,082) | (4.3)% | | Station operating expenses | $21,963 | $22,459 | $(496) | (2.2)% | | Corporate general and administrative | $3,167 | $3,083 | $84 | 2.7 % | | Depreciation and amortization | $1,326 | $1,198 | $128 | 10.7 % | | Other operating expense, net | $54 | $971 | $(917) | N/M | | Operating loss | $(2,298) | $(2,417) | $119 | (4.9)% | | Interest expense | $107 | $43 | $64 | 148.8 % | | Interest income | $(222) | $(303) | $81 | N/M | | Other income | $(23) | — | $(23) | N/M | | Loss before income tax expense | $(2,160) | $(2,157) | $(3) | 0.1 % | | Income tax (benefit) expense | $(585) | $(580) | $(5) | 0.9 % | | Net loss | $(1,575) | $(1,577) | $2 | (0.1)% | | Earnings (loss) per share (diluted) | $(0.25) | $(0.25) | $— | — % | - Net operating revenue **decreased by $1,082,000 (4.3%) YoY**, driven by a $1,677,000 decrease in same-station revenue, partially offset by $595,000 from newly acquired stations[127](index=127&type=chunk) - Same-station revenue decline was primarily due to decreases in gross local revenue ($1,815,000) and gross national revenue ($432,000), partially offset by increases in gross interactive revenue ($342,000) and non-spot revenue ($97,000)[127](index=127&type=chunk) - Station operating expense **decreased by $496,000 (2.2%) YoY**, mainly due to a $1,115,000 decrease in same-station expenses, offset by $619,000 from new stations[128](index=128&type=chunk) - The decrease in same-station operating expense was driven by lower compensation-related expenses, bad debt, digital services, advertising, and repairs/maintenance[128](index=128&type=chunk) - **Operating loss improved by $119,000**, primarily due to a $917,000 decrease in other operating expense (lower loss on asset sales) partially offset by increased corporate G&A and depreciation/amortization[129](index=129&type=chunk) - **Net loss slightly improved by $2,000**, driven by the operating income increase, higher other income (insurance proceeds), and increased tax benefit, partially offset by higher interest expense and lower interest income[130](index=130&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) Discusses the company's cash flow, debt, capital expenditures, and ability to fund operations - The Credit Facility's maturity was extended to **December 19, 2027**, with interest rates tied to SOFR[131](index=131&type=chunk)[134](index=134&type=chunk) - The Company had **$5,000,000 in debt outstanding** at March 31, 2025, and December 31, 2024, related to the Lafayette acquisition[136](index=136&type=chunk) - Unused borrowing capacity under the Revolving Credit Facility was approximately **$45 million** at March 31, 2025, and December 31, 2024[137](index=137&type=chunk) - Net cash provided by operating activities was **$1,364,000** for Q1 2025, down from $3,803,000 for Q1 2024[138](index=138&type=chunk) - The Stock Buy-Back Program has a remaining authorization of **$17.7 million**; no shares were repurchased in Q1 2025, but the Company intends to use proceeds from non-core asset sales for future buybacks[139](index=139&type=chunk) - Capital expenditures for Q1 2025 were **$696,000**, with anticipated full-year 2025 capital expenditures of $4.0 million to $4.5 million, expected to be financed by operations[140](index=140&type=chunk) - A quarterly cash dividend of approximately **$1.6 million** was paid in Q1 2025[142](index=142&type=chunk) [Summary Disclosures About Contractual Obligations and Commercial Commitments](index=42&type=section&id=Summary%20Disclosures%20About%20Contractual%20Obligations%20and%20Commercial%20Commitments) Summarizes future cash obligations from contracts and commercial commitments - Future cash obligations include Credit Facility terms, operating leases, programming contracts, and employment agreements[145](index=145&type=chunk) - Contractual cash obligations are anticipated to be financed through operations or additional borrowings under the Credit Facility[146](index=146&type=chunk) [Recent Accounting Pronouncements](index=42&type=section&id=Recent%20Accounting%20Pronouncements) Refers to the notes section for information on new accounting standards - Recent accounting pronouncements are described in Note 2 to the financial statements[147](index=147&type=chunk) [Inflation](index=42&type=section&id=Inflation) Comments on the current and potential impact of inflation on the company's operations - The impact of inflation has not been significant to date, but the Company is observing higher costs for goods and services[148](index=148&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section refers to the Company's annual report for a comprehensive discussion of market risk - **No material changes** to market risk information have occurred since the December 31, 2024, annual report on Form 10-K[149](index=149&type=chunk) [Item 4. Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls were not effective due to material weaknesses in internal control - Disclosure controls and procedures were deemed **not effective** as of March 31, 2025[150](index=150&type=chunk) - **Material weakness** identified in internal control over financial reporting: Ineffective controls over Broadcast Revenue Reconciliations due to lack of monitoring and segregation of duties within the Traffic Management system[151](index=151&type=chunk) - **Material weakness** identified in internal control over financial reporting: Ineffective controls over Digital Revenue Reconciliations due to lack of monitoring and documentation procedures[152](index=152&type=chunk) - Management is actively implementing remediation plans outlined in the 2024 Annual Report on Form 10-K, but the material weakness is **not yet fully remediated** as of March 31, 2025[155](index=155&type=chunk) - Despite the material weakness, management believes the Condensed Consolidated Financial Statements fairly present the Company's financial position and results[156](index=156&type=chunk) [PART II OTHER INFORMATION](index=30&type=section&id=PART%20II%20OTHER%20INFORMATION) Contains other required disclosures, including legal proceedings, risk factors, and exhibits [Item 1. Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) The Company is not currently a party to any material legal proceedings - The Company is not a party to any current legal proceedings material to its financial condition[160](index=160&type=chunk) [Item 1A. Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed - **No material changes** to risk factors have occurred since the December 31, 2024, annual report on Form 10-K[161](index=161&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=30&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Company made no unregistered sales of equity securities and did not repurchase any shares - **No unregistered sales** of equity securities were made during the fiscal quarter ended March 31, 2025[162](index=162&type=chunk) **Class A Common Stock Repurchases (Three Months Ended March 31, 2025)** | Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program | Approximate Dollar Value of Shares that May Yet be Purchased Under the Program | | :--- | :--- | :--- | :--- | :--- | | January 1 - January 31, 2025 | — | $— | — | $17,686,383 | | February 1 - February 28, 2025 | — | $— | — | $17,686,383 | | March 1 - March 31, 2025 | — | $— | — | $17,686,383 | | **Total** | **—** | **$—** | **—** | **$17,686,383** | - The Company has a Stock Buy-Back Program with **$17.7 million remaining authorization** for Class A Common Stock repurchases[165](index=165&type=chunk) [Item 5. Other Information](index=30&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted, modified, or terminated Rule 10b5-1 trading arrangements - No directors or executive officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the fiscal quarter ended March 31, 2025[164](index=164&type=chunk) [Item 6. Exhibits](index=31&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q - Exhibits include certifications (31.1, 31.2, 32) and Inline XBRL documents (101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE, 104)[166](index=166&type=chunk) [SIGNATURES](index=32&type=section&id=SIGNATURES) The report is duly signed on behalf of Saga Communications, Inc - The report was signed by Samuel D. Bush (EVP, CFO, Treasurer) and Catherine A. Bobinski (SVP, Chief Accounting Officer, Corporate Controller) on May 9, 2025[170](index=170&type=chunk)

Financial Data and Key Metrics Changes - For the quarter ended March 31, 2025, net revenue decreased by 4.3% to $24.2 million compared to $25.3 million last year [12] - Station operating expense decreased by 2.2% to $22 million for the three-month period [13] - The company reported a net loss of $1.6 million for the quarter, approximately the same as last year [13] - Total interactive revenue was up 14% with a 51% profit margin [15] Business Line Data and Key Metrics Changes - The top three largest advertising verticals were home improvement, professional services, and automotive [9] - The top three fastest growing advertising verticals were home improvement, health care, and real estate [9] - Digital ad revenue for 2025 reached $5.3 million as of May 8, 2025, compared to $5 million for all of 2024 [10] - The online news initiative revenue almost doubled from $285,000 in Q1 2024 to $562,000 in Q1 2025 [15] Market Data and Key Metrics Changes - The company experienced four straight months of significant growth in digital ad revenue from February through May [11] - April showed a decline in pacing down high single digits, but May showed improvement to down low single digits [16] Company Strategy and Development Direction - The company is focused on a digital strategy that blends radio, search, and display advertising [8] - Plans to use proceeds from potential sales of non-core assets for stock buybacks as part of capital allocation [18] - The company aims to capture 5% of available digital dollars in its markets over the next 18 to 24 months to potentially double gross total annual revenue [32] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the potential ripple effect of tariffs on advertising spend but noted no significant impact observed yet [33] - The company expects to see improvement in pacing for the second quarter, with interactive pacing up 18.4% [16] - The management expressed confidence in the digital strategy and its ability to meet consumer needs in a fragmented advertising marketplace [21][24] Other Important Information - The company paid a quarterly dividend of $0.25 per share on March 7, 2025, totaling approximately $1.6 million [17] - The balance sheet reflects $27 million in cash and short-term investments as of March 31, 2025 [18] Q&A Session Summary Question: Has there been an impact on advertising spend related to tariffs? - Management indicated there may be a ripple effect from tariffs but has not seen significant changes yet [33] Question: What are the trends in digital performance for the quarter and guidance for the second quarter? - Management noted that digital performance was addressed earlier and trends are improving for the second quarter [35] Question: Any insights on advertising categories that weakened from Q1 to Q2? - Management stated that main categories are performing well and showing positive growth for the second quarter [36]

Financial Data and Key Metrics Changes - For Q1 2025, net revenue decreased by 4.3% to $24.2 million compared to $25.3 million in the previous year [11] - Station operating expenses decreased by 2.2% to $22 million for the quarter, resulting in an operating loss of $2.3 million, slightly improved from a loss of $2.4 million last year [12] - The net loss for the quarter was $1.6 million, approximately the same as last year [12] - Total interactive revenue increased by 14% with a profit margin of 51% [14] Business Line Data and Key Metrics Changes - The top three largest advertising verticals were home improvement, professional services, and automotive, with automotive returning to the top three [9] - The fastest growing advertising verticals included home improvement, healthcare, and real estate [9] - Digital ad revenue for 2025 reached $5.3 million by May 8, already surpassing the total of $5 million for all of 2024 [9][10] Market Data and Key Metrics Changes - The company has seen four consecutive months of significant growth in digital ad revenue from February to May 2025, with May expected to be the largest month in digital ad revenue in Saga's history [10] - The company anticipates that the annual corporate general and administrative expense will be approximately $12 million for 2025, down from $12.6 million in 2024 [19] Company Strategy and Development Direction - Saga Communications is focusing on a digital strategy that blends radio, search, and display advertising to enhance customer engagement and drive sales [7][21] - The company plans to use proceeds from potential sales of non-core assets for stock buybacks as part of its capital allocation strategy [5][17] - The company aims to capture 5% of available digital dollars in its markets over the next 18 to 24 months to potentially double its gross total annual revenue [33] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the potential ripple effects of tariff concerns on advertising spend but noted no significant impact observed yet [34] - The company expects to see improvement in advertising trends as the year progresses, with interactive pacing for the second quarter up 18.4% [15] - Management remains optimistic about the digital strategy's potential to disrupt the advertising marketplace and meet unmet needs of advertisers [22][24] Other Important Information - The company paid a quarterly dividend of $0.25 per share on March 7, 2025, totaling approximately $1.6 million [16] - Saga's balance sheet reflects $27 million in cash and short-term investments as of March 31, 2025 [18] Q&A Session Summary Question: Has there been an impact on advertising spend related to tariff concerns? - Management indicated that while there may be a ripple effect, no significant impact has been observed yet [34][36] Question: What are the trends in digital performance for the quarter and guidance for the second quarter? - Management addressed the performance in the quarter and noted that trends are improving for the second quarter [37] Question: Any insights on advertising categories that weakened from the first quarter to the second quarter? - Management highlighted that main categories are performing well and showing positive growth for the second quarter [38]

Saga Communications (SGA) came out with a quarterly loss of $0.25 per share versus the Zacks Consensus Estimate of a loss of $0.33. This compares to loss of $0.14 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 24.24%. A quarter ago, it was expected that this broadcasting company would post a loss of $0.12 per share when it actually produced earnings of $0.20, delivering a surprise of 266.67%.Over the last four quarters, the c ...

Contact: Samuel D. Bush (313) 886-7070 Grosse Pointe Farms, MI – May 8, 2025 – Saga Communications, Inc. (Nasdaq - SGA) (the "Company," "Saga," "we," or "our") today reported that net revenue decreased 4.3% to $24.2 million for the quarter ended March 31, 2025 compared to $25.3 million for the same period last year. Station operating expense decreased 2.2% for the quarter to $22.0 million compared to the same period last year. For the quarter, our operating loss was $2.3 million compared to an operating los ...

Core Viewpoint - Saga Communications, Inc. reported a net revenue decrease of 4.3% to $24.2 million for Q1 2025 compared to $25.3 million in Q1 2024, with an operating loss of $2.3 million, slightly improved from a loss of $2.4 million in the previous year [1][2]. Financial Performance - Net revenue for the same-station basis decreased by 6.6% to $23.6 million, while station operating expenses decreased by 5.0% to $21.3 million [2]. - The company experienced a net loss of $1.6 million for the quarter, consistent with the same period last year, and diluted loss per share was $0.25 [1][14]. Capital Expenditures and Dividends - Capital expenditures for the quarter were $700 thousand, down from $1.1 million in the same period last year [1]. - The company paid a quarterly dividend of $0.25 per share, totaling approximately $1.6 million, and has paid over $137 million in dividends since 2012 [5]. Balance Sheet and Cash Flow - As of March 31, 2025, the company had $27.0 million in cash and short-term investments, which increased to $27.2 million by May 5, 2025 [6]. - The company expects to spend approximately $4.0 to $4.5 million on capital expenditures during 2025 [6]. Future Outlook - Revenue pacing for Q2 2025 remains uncertain but shows improvement, with April down high single digits, May down low single digits, and June approximately flat compared to the same period last year [3]. - The company anticipates additional legal and proxy contest expenses in the second quarter due to a potential proxy contest initiated by a shareholder [4].

Company Announcement - Saga Communications, Inc. will release its 1st Quarter 2025 results on May 8, 2025, at 9:00 a.m. EDT [1] - A conference call will be held on the same date at 11:00 a.m. EDT, with specific dial-in numbers provided [1] - Inquiries for the conference call should be submitted via email by 10:00 a.m. EDT on May 8, 2025 [1] Financial Information - The earnings release will include non-GAAP financial measures such as station operating income, trailing 12-month consolidated EBITDA, and same station financial information [2] - A reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures will be provided in the earnings release [2] Company Overview - Saga is a media company focused on acquiring, developing, and operating broadcast properties, with an emphasis on enhancing its core radio business through digital, e-commerce, and local online news services [3] - The company operates in 28 markets, owning or operating 82 FM and 32 AM radio stations, along with 79 metro signals [3]

Core Points - Saga Communications, Inc. will release its Q1 2025 results on May 8, 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] Company Overview - Saga Communications is a media company focused on acquiring, developing, and operating broadcast properties, with an emphasis on enhancing its core radio business through digital, e-commerce, local online news services, and non-traditional revenue initiatives [3] - The company operates in 28 markets, owning or operating 82 FM and 32 AM radio stations, along with 79 metro signals [3]

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]