Saga Communications, Inc. (NASDAQ:SGA) Q1 2019 Earnings Conference Call May 10, 2019 11:00 AM ET Company Participants Edward Christian - President, CEO & Chairman Samuel Bush - Senior VP, Treasurer & CFO Conference Call Participants Operator Ladies and gentlemen, thank you for standing by. And welcome to the Saga Communications First Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode today. [Operator Instructions] I would now like to turn the conference over to your h ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Unaudited Q1 2019 financials report decreased assets and liabilities, net income of $1.37 million, and $6.3 million cash from operations [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20consolidated%20balance%20sheets) Total assets decreased to **$245.5 million** and liabilities to **$60.1 million** as of March 31, 2019, with stockholders' equity remaining stable Condensed Consolidated Balance Sheet Data (in thousands) | Account | March 31, 2019 | December 31, 2018 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $39,170 | $44,729 | | Total current assets | $59,673 | $68,595 | | Net property and equipment | $58,739 | $59,103 | | Broadcast licenses, net | $95,311 | $95,250 | | Goodwill | $18,974 | $18,839 | | **Total Assets** | **$245,453** | **$248,477** | | **Liabilities & Equity** | | | | Total current liabilities | $14,417 | $23,165 | | Long-term debt | $15,000 | $15,000 | | **Total Liabilities** | **$60,127** | **$63,478** | | **Total Stockholders' Equity** | **$185,326** | **$184,999** | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20consolidated%20statements%20of%20income) Q1 2019 net operating revenue slightly decreased to **$27.8 million**, resulting in net income of **$1.37 million** or **$0.23** diluted EPS Q1 2019 vs Q1 2018 Income Statement (in thousands, except per share data) | Metric | Q1 2019 | Q1 2018 | | :--- | :--- | :--- | | Net operating revenue | $27,816 | $28,009 | | Station operating expenses | $23,163 | $23,397 | | Operating income | $1,965 | $2,319 | | Net income | $1,370 | $1,529 | | Diluted EPS | $0.23 | $0.26 | - Dividends declared per share remained constant at **$0.30** for the first quarter of both 2019 and 2018[14](index=14&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Condensed%20consolidated%20statements%20of%20stockholders'%20equity) Stockholders' equity increased slightly to **$185.3 million** in Q1 2019, influenced by net income, stock compensation, and dividends Changes in Stockholders' Equity for Q1 2019 (in thousands) | Description | Amount | | :--- | :--- | | Balance at December 31, 2018 | $184,999 | | Net income | $1,370 | | Dividends declared | ($1,784) | | Compensation expense related to restricted stock | $559 | | Purchase of shares held in treasury | ($80) | | 401(k) plan contribution | $262 | | **Balance at March 31, 2019** | **$185,326** | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20consolidated%20statements%20of%20cash%20flows) Q1 2019 saw **$6.3 million** cash from operations, with investing and financing activities causing a **$5.6 million** net decrease in cash Q1 2019 vs Q1 2018 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2019 | Q1 2018 | | :--- | :--- | :--- | | Cash provided by operating activities | $6,305 | $4,372 | | Net cash used in investing activities | ($1,726) | ($1,204) | | Net cash used in financing activities | ($10,138) | ($8,404) | | **Net decrease in cash** | **($5,559)** | **($5,236)** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20unaudited%20condensed%20consolidated%20financial%20statements) Notes detail the adoption of the new lease standard, Q1 2019 revenue disaggregation, a small acquisition, and long-term debt specifics - The company adopted the new lease standard (ASU 2016-02) on January 1, 2019, using the modified retrospective method, recording right-of-use assets and lease liabilities of approximately **$6.7 million**[35](index=35&type=chunk) Disaggregation of Revenue for Q1 (in thousands) | Revenue Source | 2019 | 2018 | | :--- | :--- | :--- | | Broadcast Advertising Revenue, net | $25,191 | $25,758 | | Digital Advertising Revenue | $875 | $950 | | Other Revenue | $1,750 | $1,301 | | **Net Revenue** | **$27,816** | **$28,009** | - On January 9, 2019, the company acquired WPVQ-AM and W222CH in Greenfield, Massachusetts for an aggregate purchase price of **$210 thousand**[61](index=61&type=chunk) - The company's **$100 million** revolving credit facility was amended in June 2018 to extend the maturity date to June 27, 2023. As of March 31, 2019, **$15 million** was outstanding, with **$85 million** of unused borrowing capacity[80](index=80&type=chunk)[86](index=86&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q1 2019 consolidated net operating revenue decreased by **0.7%** due to lower advertising, resulting in a **15.3%** drop in operating income Consolidated Results of Operations Q1 2019 vs Q1 2018 (in thousands) | Metric | Q1 2019 | Q1 2018 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Net operating revenue | $27,816 | $28,009 | ($193) | (0.7)% | | Station operating expense | $23,163 | $23,397 | ($234) | (1.0)% | | Operating income | $1,965 | $2,319 | ($354) | (15.3)% | | Net income | $1,370 | $1,529 | ($159) | (10.4)% | - The decrease in same-station revenue was driven by declines in gross national revenue (**$653k**), gross political revenue (**$215k**), and gross local revenue (**$542k**)[114](index=114&type=chunk) - The company's five largest markets (Columbus, Des Moines, Manchester, Milwaukee, Norfolk) represented approximately **38%** of consolidated net operating revenue and **43%** of consolidated station operating income in Q1 2019[109](index=109&type=chunk)[110](index=110&type=chunk) - The company anticipates capital expenditures for 2019 to be between **$5.0 million** and **$5.5 million**, financed through funds from operations[131](index=131&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) No material changes to market risk information were reported since the 2018 Annual Report on Form 10-K - There have been no material changes to the market risk information included in the company's 2018 Annual Report on Form 10-K[144](index=144&type=chunk) [Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) CEO and CFO concluded disclosure controls and procedures are effective, with no material changes to internal controls during the quarter - The company's CEO and CFO concluded that disclosure controls and procedures are effective as of the end of the reporting period[146](index=146&type=chunk) - No changes in internal controls over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[146](index=146&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) Management anticipates no material financial statement impact from ongoing legal claims and proceedings in the ordinary course of business - Management anticipates that potential liabilities from outstanding claims and legal proceedings will not have a material effect on the company's financial statements[148](index=148&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=29&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **2,505** shares of Class A Common Stock in Q1 2019, with **$20.3 million** remaining for future buy-backs Share Repurchases in Q1 2019 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | January 2019 | 1,753 | $31.86 | | February 2019 | 752 | $31.90 | | March 2019 | 0 | $0.00 | | **Total** | **2,505** | **$31.87** | - As of the end of Q1 2019, the company had approximately **$20.3 million** remaining under its stock buy-back authorization[150](index=150&type=chunk) [Exhibits](index=30&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO/CFO certifications and XBRL data files - Exhibits filed include CEO and CFO certifications (**31.1**, **31.2**, **32**) and XBRL Instance Documents[152](index=152&type=chunk)[153](index=153&type=chunk)

[Part I](index=5&type=section&id=PART%20I) [Business](index=5&type=section&id=Item%201.%20Business) Saga Communications operates 79 FM and 34 AM radio stations across 27 mid-sized markets, primarily generating revenue from local advertising and subject to FCC regulation - As of February 28, 2019, the company owned **79 FM and 34 AM radio stations** across 27 markets, with its television segment sold in 2017 now reported as discontinued operations[17](index=17&type=chunk) - The company's strategy focuses on operating top-billing radio stations in mid-sized markets (ranked 20 to 200)[23](index=23&type=chunk) Revenue Source Breakdown (2016-2018) | Revenue Source | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | | **Local Advertising** | 87% | 87% | 85% | | **National Advertising** | 13% | 13% | 15% | [Strategy, Operations, and Competition](index=5&type=section&id=Item%201.%20Business_Strategy%20and%20Operations) The company employs decentralized local management and diverse programming to achieve top ratings, with revenue from short-term advertising contracts in a highly competitive and seasonal market - The company utilizes diverse programming formats like Classic Hits and News/Talk, supported by extensive market research[25](index=25&type=chunk) - Competition extends beyond other radio stations to include cable television, newspapers, direct mail, the Internet, and new technologies like satellite and streaming radio[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) - As of December 31, 2018, the company employed approximately **687 full-time and 344 part-time individuals**, none unionized[38](index=38&type=chunk) [Federal Regulation of Radio Broadcasting](index=11&type=section&id=Item%201.%20Business_Federal%20Regulation) FCC heavily regulates the company's operations, covering license renewals, ownership limits, foreign ownership, EEO rules, and music royalties, with potential new burdens from the Music Modernization Act - Radio broadcasting licenses are granted for maximum terms of **eight years** and require FCC renewal[43](index=43&type=chunk) - The Communications Act restricts foreign ownership, generally prohibiting more than **25% alien control** of broadcast licenses without an FCC waiver[50](index=50&type=chunk) - The 2018 Music Modernization Act, improving songwriter compensation and digital radio royalties, may impose additional financial burdens on the company[77](index=77&type=chunk) [Executive Officers](index=22&type=section&id=Item%201.%20Business_Executive%20Officers) The company's executive team includes President and CEO Edward K Christian, along with key leaders in finance, corporate affairs, and operations Executive Officers | Name | Age | Position | | :--- | :--- | :--- | | Edward K. Christian | 74 | President, Chief Executive Officer and Chairman; Director | | Samuel D. Bush | 61 | Senior Vice President, Treasurer and Chief Financial Officer | | Marcia K. Lobaito | 70 | Senior Vice President, Corporate Secretary, and Director of Business Affairs | | Catherine A. Bobinski | 59 | Senior Vice President/Finance, Chief Accounting Officer and Corporate Controller | | Christopher S. Forgy | 58 | Senior Vice President of Operations | [Risk Factors](index=23&type=section&id=Item%201A.%20Risk%20Factors) Key risks include cyclical advertising revenue, substantial debt, dependence on CEO Edward K Christian, intense competition, potential FCC license impairment, and cybersecurity threats - Advertising revenues are cyclical and sensitive to economic conditions; a downturn could decrease expenditures and adversely affect business[87](index=87&type=chunk) - As of December 31, 2018, the company had approximately **$20 million in long-term debt** with restrictive financial covenants[89](index=89&type=chunk)[90](index=90&type=chunk) - The business is dependent on key personnel, particularly CEO Edward K. Christian, who controlled approximately **65% of the combined voting power** as of March 2, 2019[92](index=92&type=chunk)[106](index=106&type=chunk) - FCC broadcasting licenses, representing **38.3% of total assets** as of December 31, 2018, are subject to annual impairment testing[99](index=99&type=chunk) - The company is vulnerable to IT failures, cybersecurity attacks, and data breaches that could disrupt operations and damage reputation[108](index=108&type=chunk)[109](index=109&type=chunk) [Unresolved Staff Comments](index=28&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) No unresolved staff comments were reported [Properties](index=28&type=section&id=Item%202.%20Properties) The company owns facilities for 25 of its 28 operating locations, with the remainder and transmitter sites leased, and no single property is material - As of December 31, 2018, the company owned studios and offices for **25 of its 28 operating locations**, with remaining facilities leased[113](index=113&type=chunk) [Legal Proceedings](index=28&type=section&id=Item%203.%20Legal%20Proceedings) The company faces ordinary course legal claims, but management anticipates no material impact on financial statements [Mine Safety Disclosures](index=28&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This disclosure item is not applicable to the company's operations [Part II](index=29&type=section&id=PART%20II) [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=29&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's Class A Common Stock trades on NASDAQ, with 2018 dividends of $1.45 per share and $20.4 million remaining for share repurchases Class A Common Stock Price (2018) | Quarter | High | Low | | :--- | :--- | :--- | | First Quarter | $42.60 | $36.10 | | Second Quarter | $40.10 | $36.50 | | Third Quarter | $39.00 | $35.00 | | Fourth Quarter | $37.89 | $30.05 | - The company declared total cash dividends of **$1.45 per share in 2018**, $2.00 in 2017, and $1.30 in 2016[121](index=121&type=chunk)[122](index=122&type=chunk)[123](index=123&type=chunk) - As of December 31, 2018, approximately **$20.4 million** remained available for share repurchases under the Stock Buy-Back Program[129](index=129&type=chunk) [Selected Financial Data](index=33&type=section&id=Item%206.%20Selected%20Financial%20Data) This section provides a five-year financial overview, highlighting 2018 net operating revenue of **$124.8 million** and net income of **$13.7 million** from continuing operations Selected Financial Data (Continuing Operations) | (In thousands) | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | | **Net Operating Revenue** | $124,829 | $118,149 | $118,955 | | **Operating Income** | $19,682 | $17,229 | $22,527 | | **Net Income from Continuing Operations** | $13,690 | $22,246 | $12,910 | | **Total Assets** | $248,477 | $248,769 | $219,998 | | **Long-term Debt** | $20,000 | $25,000 | $35,287 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A covers the radio segment, noting 2018 revenue growth driven by acquisitions, a decline in net income due to a prior-year tax benefit, strong liquidity, and critical accounting estimates for broadcast licenses and goodwill [Results of Operations](index=39&type=section&id=Item%207_Results%20of%20Operations) Consolidated net operating revenue increased by **5.7%** in 2018, while net income from continuing operations decreased by **38.5%** due to a prior-year tax benefit and discontinued operations gain Consolidated Results of Operations (2018 vs. 2017) | (In thousands) | 2018 | 2017 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Net operating revenue** | $124,829 | $118,149 | $6,680 | 5.7% | | **Station operating expense** | $93,727 | $87,759 | $5,968 | 6.8% | | **Operating income from continuing operations** | $19,682 | $17,229 | $2,453 | 14.2% | | **Income from continuing operations, net of tax** | $13,690 | $22,246 | ($8,556) | (38.5)% | | **Income from discontinued operations, net of tax** | $0 | $32,471 | ($32,471) | N/M | | **Net income** | $13,690 | $54,717 | ($41,027) | N/M | - The 2018 decrease in net income from continuing operations was primarily due to a **$11.5 million one-time income tax benefit** recorded in 2017 from the Tax Cuts and Jobs Act[177](index=177&type=chunk) [Liquidity and Capital Resources](index=43&type=section&id=Item%207_Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with an **$80 million** unused credit facility capacity and **$25.6 million** in net cash from operations in 2018, funding capital expenditures, dividends, and acquisitions - The company has a **$100 million revolving credit facility** maturing in June 2023, with **$80 million of unused borrowing capacity** as of December 31, 2018[186](index=186&type=chunk)[190](index=190&type=chunk) - Net cash provided by continuing operating activities totaled **$25.6 million** for the year ended December 31, 2018[194](index=194&type=chunk) - In 2018, the company incurred **$5.9 million in capital expenditures**, paid **$8.6 million in dividends**, and repurchased **$1.3 million of its stock**[195](index=195&type=chunk)[196](index=196&type=chunk)[121](index=121&type=chunk) Contractual Cash Obligations as of Dec 31, 2018 | (In thousands) | Total | Less Than 1 Year | 1 to 3 Years | 4 to 5 Years | More Than 5 Years | | :--- | :--- | :--- | :--- | :--- | :--- | | **Long-Term Debt Obligations** | $20,000 | $5,000 | $0 | $15,000 | $0 | | **Operating Leases** | $7,963 | $1,562 | $2,604 | $1,774 | $2,023 | | **Purchase Obligations** | $29,535 | $14,597 | $9,886 | $3,555 | $1,497 | | **Total** | **$60,730** | **$21,888** | **$13,927** | **$21,395** | **$3,520** | [Critical Accounting Policies and Estimates](index=47&type=section&id=Item%207_Critical%20Accounting%20Policies%20and%20Estimates) Critical accounting policies include the valuation and impairment testing of broadcast licenses and goodwill, which comprised **45.9% of total assets** in 2018, with a **$1.4 million impairment** recorded in 2017 - Broadcast licenses and goodwill, representing approximately **45.9% of total assets** as of December 31, 2018, are subject to annual impairment testing[216](index=216&type=chunk) - A **$1,449,000 impairment charge** for broadcast licenses was recognized in Q4 2017 due to market declines in Springfield, Illinois, with no impairment in 2018[217](index=217&type=chunk)[218](index=218&type=chunk) - A hypothetical **10% decrease** in broadcast license fair value as of December 31, 2018, would have resulted in an additional **$1.3 million impairment charge**[221](index=221&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate exposure on variable-rate debt; a hypothetical **1% rate increase** would decrease pre-tax income by **$234,000** - A hypothetical **1% increase** in average market interest rates in 2018 would have decreased pre-tax income by **$234,000**[225](index=225&type=chunk) [Financial Statements and Supplementary Data](index=49&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the consolidated financial statements and supplementary data included in the annual report [Consolidated Financial Statements](index=53&type=section&id=Financial%20Statements) Audited consolidated financial statements show **$248.5 million in total assets** and **$13.7 million in net income** for 2018, with an unqualified opinion from UHY LLP Consolidated Balance Sheet Highlights (As of Dec 31, 2018) | (In thousands) | Amount | | :--- | :--- | | Cash and cash equivalents | $44,729 | | Total current assets | $68,595 | | Net property and equipment | $59,103 | | Broadcast licenses, net | $95,250 | | Goodwill | $18,839 | | **Total Assets** | **$248,477** | | Total current liabilities | $23,165 | | Long-term debt | $15,000 | | **Total Liabilities** | **$63,478** | | **Total Stockholders' Equity** | **$184,999** | Consolidated Income Statement Highlights (Year Ended Dec 31, 2018) | (In thousands, except per share data) | Amount | | :--- | :--- | | Net operating revenue | $124,829 | | Operating income from continuing operations | $19,682 | | **Net income** | **$13,690** | | **Diluted earnings per share** | **$2.30** | [Notes to Consolidated Financial Statements](index=58&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, the 2017 television segment sale, debt, acquisitions, related party transactions, broadcast license impairment, and revenue disaggregation - The company adopted ASC 606 in 2018 with no material impact, disaggregating revenue into **$114.9 million Broadcast Advertising**, **$3.9 million Digital Advertising**, and **$6.0 million Other**[326](index=326&type=chunk)[327](index=327&type=chunk) - The 2017 sale of television stations for **$66.6 million** generated **$69.5 million in net proceeds** and a **$50.8 million pretax gain**, reported as discontinued operations[354](index=354&type=chunk) - The company acquired radio stations in Ocala, FL for **$9.3 million in 2018** and in South Carolina for **$23 million in 2017**[406](index=406&type=chunk)[409](index=409&type=chunk) - The company operates with a dual-class stock structure, where Class A shares have one vote and Class B shares (held by CEO Edward K. Christian) have **ten votes**[434](index=434&type=chunk)[388](index=388&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=49&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) No changes in or disagreements with accountants on accounting and financial disclosure were reported [Controls and Procedures](index=49&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal controls over financial reporting were effective as of December 31, 2018, with an unqualified audit opinion from UHY LLP - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the reporting period end[231](index=231&type=chunk) - Management concluded internal control over financial reporting was effective as of December 31, 2018, with UHY LLP issuing an unqualified opinion[235](index=235&type=chunk)[238](index=238&type=chunk) [Other Information](index=51&type=section&id=Item%209B.%20Other%20Information) No other information was reported [Part III](index=51&type=section&id=PART%20III) [Directors, Executive Officers, Corporate Governance, Executive Compensation, Security Ownership, and Principal Accountant Fees](index=51&type=section&id=Items%2010-14) Information for Items 10-14, covering directors, executive compensation, security ownership, and accountant fees, is incorporated by reference from the 2019 Proxy Statement - Information for Items 10, 11, 12, 13, and 14 is incorporated by reference from the 2019 Proxy Statement[247](index=247&type=chunk)[248](index=248&type=chunk)[249](index=249&type=chunk) [Part IV](index=52&type=section&id=PART%20IV) [Exhibits and Financial Statement Schedules](index=52&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section includes consolidated financial statements, notes, the independent auditor's report, and a list of all exhibits filed with the 10-K report [Consolidated Financial Statements](index=53&type=section&id=Financial%20Statements) Audited consolidated financial statements show **$248.5 million in total assets** and **$13.7 million in net income** for 2018, with an unqualified opinion from UHY LLP Consolidated Balance Sheet Highlights (As of Dec 31, 2018) | (In thousands) | Amount | | :--- | :--- | | Cash and cash equivalents | $44,729 | | Total current assets | $68,595 | | Net property and equipment | $59,103 | | Broadcast licenses, net | $95,250 | | Goodwill | $18,839 | | **Total Assets** | **$248,477** | | Total current liabilities | $23,165 | | Long-term debt | $15,000 | | **Total Liabilities** | **$63,478** | | **Total Stockholders' Equity** | **$184,999** | Consolidated Income Statement Highlights (Year Ended Dec 31, 2018) | (In thousands, except per share data) | Amount | | :--- | :--- | | Net operating revenue | $124,829 | | Operating income from continuing operations | $19,682 | | **Net income** | **$13,690** | | **Diluted earnings per share** | **$2.30** | [Notes to Consolidated Financial Statements](index=58&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, the 2017 television segment sale, debt, acquisitions, related party transactions, broadcast license impairment, and revenue disaggregation - The company adopted ASC 606 in 2018 with no material impact, disaggregating revenue into **$114.9 million Broadcast Advertising**, **$3.9 million Digital Advertising**, and **$6.0 million Other**[326](index=326&type=chunk)[327](index=327&type=chunk) - The 2017 sale of television stations for **$66.6 million** generated **$69.5 million in net proceeds** and a **$50.8 million pretax gain**, reported as discontinued operations[354](index=354&type=chunk) - The company acquired radio stations in Ocala, FL for **$9.3 million in 2018** and in South Carolina for **$23 million in 2017**[406](index=406&type=chunk)[409](index=409&type=chunk) - The company operates with a dual-class stock structure, where Class A shares have one vote and Class B shares (held by CEO Edward K. Christian) have **ten votes**[434](index=434&type=chunk)[388](index=388&type=chunk)

Saga Communications, Inc. (NASDAQ:SGA) Q4 2018 Results Conference Call March 12, 2019 11:00 AM ET Company Participants Ed Christian - Chairman, President and CEO Samuel Bush - SVP, Treasurer and CFO Conference Call Participants Operator Ladies and gentlemen, thank you for standing by. Welcome to the Fourth Quarter and Year-End Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn ...