Saga munications(US:SGA)2024-08-09 20:05Revenue 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].