Saga munications(US:SGA)2024-11-12 21:05Revenue Performance - For the nine months ended September 30, 2024, approximately 90% of the radio stations' gross revenue was from local advertising, compared to 89% for the same period in 2023[95]. - Net operating revenue for the three months ended September 30, 2024, was $28,118 thousand, a decrease of 3.5% from $29,149 thousand in the same period of 2023[110]. - Consolidated net operating revenue for Q3 2024 was $28,118,000, a decrease of $1,031,000 or 3.5% compared to Q3 2023[112]. - For the nine months ended September 30, 2024, net operating revenue was $81,524,000, down $2,104,000 or 2.5% from $83,628,000 in the same period of 2023[118]. Operating Income and Expenses - Operating income for the three months ended September 30, 2024, was $1,645 thousand, reflecting a significant decline of 52.9% compared to $3,492 thousand in the same period of 2023[110]. - Station operating expenses increased by $698,000 or 3.1% to $23,458,000 for Q3 2024[113]. - Operating income for the nine months ended September 30, 2024 was $1,371,000, a decrease of $7,322,000 or 84.2% from $8,693,000 in the same period of 2023[120]. - Station operating expenses for the nine months ended September 30, 2024 increased by $3,113,000 or 4.7% to $69,983,000[119]. Net Income - Net income for Q3 2024 was $1,267,000 ($0.20 per share), a decrease of $1,462,000 from $2,729,000 ($0.45 per share) in Q3 2023, reflecting a decline of 53.7%[115]. - Net income for the nine months ended September 30, 2024 was $2,191,000 ($0.35 per share), down $4,808,000 or 68.7% from $6,999,000 ($1.15 per share) in the same period of 2023[121]. Debt and Cash Flow - The company had $5,000,000 of debt outstanding as of September 30, 2024, related to the Lafayette acquisition[127]. - Cash flows from operating activities for the nine months ended September 30, 2024 were $10,141,000, compared to $13,921,000 in the same period of 2023[128]. Capital Expenditures and Acquisitions - Capital expenditures for the nine months ended September 30, 2024, were $3.2 million, down from $3.4 million in 2023, with an anticipated range of $4.0 million to $4.5 million for 2024[132]. - The company acquired assets from Neuhoff Communications for $5.3 million, with total transaction costs amounting to $5.832 million[133]. Dividends - Dividends declared for Class A Common Stock totaled $1.35 per share, amounting to approximately $8.5 million as of September 30, 2024, compared to $3.00 per share and approximately $18.6 million in 2023[134]. Future Outlook - The company expects political revenue in 2024 to increase from 2023 levels due to more elections at national, state, and local levels[96]. - Future acquisitions and dividend payments are expected to be financed through operations, borrowings, or a combination thereof[135]. - The company has future cash obligations under various contracts, including its Credit Facility and operating leases[136]. Economic Factors - The broadcasting industry is influenced by economic factors such as unemployment rates, inflation, and energy prices, affecting advertising revenue generation[98]. - The impact of inflation has not been significant to date, but rising costs are beginning to affect operations[138]. - There have been no material changes to the market risk information included in the 2023 annual report[139]. Company Operations - The company operates 82 FM and 32 AM radio stations across 28 markets[93]. - The primary operating expenses include employee salaries, sales commissions, programming expenses, and advertising costs[103]. - The five largest markets combined represented approximately 36% of consolidated station operating income for the nine months ended September 30, 2024[108]. - Interest expense increased by 175.0% to $121 thousand for the three months ended September 30, 2024, compared to $44 thousand in the same period of 2023[110]. - The company is expanding its digital initiatives to enhance user engagement across multiple platforms[104].