Executive Summary & Financial Highlights Saga Communications reported decreased net revenue and income for Q2 and the first half of 2025, alongside ongoing capital allocation strategies Q2 2025 Financial Performance Saga Communications reported a decrease in net revenue and net income for the second quarter of 2025 compared to the prior year, with diluted EPS at $0.18. Same station net revenue also saw a decline Q2 2025 Key Financials (vs. Q2 2024) | Metric | Q2 2025 (Millions $) | Q2 2024 (Millions $) | Change (%) | | :------------------------ | :-------- | :-------- | :--------- | | Net Revenue | $28.2M | $29.7M | -5.0% | | Station Operating Expense | $22.2M | $23.3M | -4.6% | | Operating Income | $1.4M | $2.1M | -33.3% | | Station Operating Income | $6.0M | $6.4M | -6.4% | | Net Income | $1.1M | $2.5M | -56.0% | | Diluted EPS | $0.18 | $0.40 | -55.0% | - On a same station basis, net revenue decreased by $1.5 million or 6.4% to $27.6 million for the quarter ended June 30, 20252 - Gross political revenue significantly decreased to $51 thousand in Q2 2025 from $288 thousand in Q2 20245 Six Months Ended June 30, 2025 Financial Performance For the first six months of 2025, Saga Communications reported a net loss, a decline in net revenue, and a decrease in station operating income compared to the same period last year Six Months 2025 Key Financials (vs. Six Months 2024) | Metric | Six Months 2025 (Millions $) | Six Months 2024 (Millions $) | Change (%) | | :------------------------ | :-------------- | :-------------- | :--------- | | Net Revenue | $52.4M | $55.0M | -4.7% | | Station Operating Expense | $44.2M | $45.8M | -3.4% | | Operating Loss | ($889K) | ($274K) | -224.5% | | Station Operating Income | $8.2M | $9.2M | -10.8% | | Net Loss | ($447K) | $924K | -148.4% | | Diluted Loss Per Share | ($0.07) | $0.15 | -146.7% | - On a same station basis, net revenue decreased by $2.6 million or 6.5% to $51.2 million for the six months ended June 30, 20254 - Gross political revenue for the six-month period was $321 thousand, down from $598 thousand in the comparable period last year5 Capital Allocation & Strategic Initiatives The Company continues its capital allocation strategy, including regular dividends and exploring asset sales to fund potential stock buybacks, while maintaining a healthy cash position - Saga paid a quarterly dividend of $0.25 per share on June 27, 2025, totaling approximately $1.6 million, and intends to continue regular quarterly cash dividends6 - The Company is in non-binding negotiations to sell some tower sites, with anticipated proceeds in the high 7 figure or low 8 figure range, and is assessing the potential sale of other non-core assets to fund stock buybacks7 Cash and Capital Expenditure Outlook | Metric | Amount (Millions $) | | :-------------------------------- | :----- | | Cash & Short-Term Investments (June 30, 2025) | $24.9M | | Cash & Short-Term Investments (August 4, 2025) | $27.3M | | Expected Capital Expenditures (2025) | $3.0M - $3.5M | Company Overview & Non-GAAP Measures This section describes Saga Communications' business, explains its use of non-GAAP financial measures, outlines forward-looking statement caveats, and provides conference call details Company Description Saga Communications is a media company focused on acquiring, developing, and operating broadcast properties, expanding into digital and non-traditional revenue streams - Saga is a media company focused on acquiring, developing, and operating broadcast properties, with a growing emphasis on digital, e-commerce, local online news, and non-traditional revenue initiatives14 - The Company owns or operates broadcast properties in 28 markets, including 82 FM, 31 AM radio stations, and 79 metro signals14 Non-GAAP Financial Measures Explanation Saga utilizes several non-GAAP financial measures, such as 'same station' and 'station operating income,' to provide additional insights into its financial performance and facilitate industry comparisons, emphasizing they are supplementary to GAAP results - Saga uses non-GAAP measures like 'same station' financial information, 'pro forma' financial information, 'station operating income,' 'trailing 12-month consolidated EBITDA,' and 'leverage ratio' to assess financial performance and provide meaningful comparisons within the broadcasting industry12 - These non-GAAP measures are not liquidity or performance measures in accordance with GAAP and should be viewed as a supplement, not a substitute, for GAAP results12 Forward-Looking Statements The press release contains forward-looking statements, which are subject to various risks and uncertainties, and the Company does not commit to updating this information - The press release includes forward-looking statements based on current expectations, involving risks and uncertainties, as described in Saga's SEC filings, particularly Item 1A of its Form 10-K13 - Actual results may differ materially due to factors like global, national, and local economic changes, and changes in the radio broadcast industry, with Saga undertaking no obligation to update such statements13 Conference Call Information Saga Communications scheduled a conference call for August 7, 2025, to discuss its Q2 2025 results, with provisions for submitting questions in advance - Saga's 2025 Second Quarter conference call was scheduled for Thursday, August 7, 2025, at 11:00 a.m. ET, with dial-in details provided10 - Parties wishing to submit questions for the conference call were requested to email inquiries to SagaIR@sagacom.com by 10:00 a.m. on August 7, 202511 Consolidated Financial Statements This section presents the consolidated statements of operations, balance sheets, and cash flows, detailing the company's financial position and performance for the periods presented Consolidated Statements of Operations The consolidated statements of operations show a decline in net operating revenue and a shift from operating income to operating loss for the six-month period, alongside a decrease in net income for the quarter and a net loss for the six-month period Selected Consolidated Statements of Operations Data (Amounts in 000's) | Operating Results | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net operating revenue | $28,229 | $29,716 | $52,441 | $55,010 | | Station operating expense | 22,226 | 23,305 | 44,189 | 45,764 | | Corporate general and administrative | 3,074 | 3,004 | 6,241 | 6,087 | | Depreciation and amortization | 1,267 | 1,258 | 2,593 | 2,456 | | Other operating expense, net | 253 | 6 | 307 | 977 | | Operating income (loss) | 1,409 | 2,143 | (889) | (274) | | Interest expense | 107 | 71 | 214 | 114 | | Interest income | (210) | (251) | (432) | (554) | | Other income, net | (1) | (1,133) | (24) | (1,133) | | Income (loss) before income tax expense | 1,513 | 3,456 | (647) | 1,299 | | Income tax (benefit) expense | 385 | 955 | (200) | 375 | | Net income (loss) | $1,128 | $2,501 | $(447) | $924 | | Diluted Income (loss) per share | $0.18 | $0.40 | $(0.07) | $0.15 | Consolidated Balance Sheets The balance sheet data shows a slight increase in working capital and a decrease in total assets and stockholders' equity as of June 30, 2025, compared to June 30, 2024, with long-term debt remaining constant Selected Consolidated Balance Sheet Data (Amounts in 000's) | Balance Sheet Data | June 30, 2025 | June 30, 2024 | | :------------------------ | :------------ | :------------ | | Working capital | $29,054 | $28,920 | | Net fixed assets | $51,219 | $53,251 | | Net intangible assets and other assets | $122,118 | $122,321 | | Total assets | $218,873 | $221,617 | | Long-term debt | $5,000 | $5,000 | | Stockholders' equity | $163,680 | $165,827 | Consolidated Statements of Cash Flows For the six months ended June 30, 2025, net cash provided by operating activities decreased significantly, while net cash used in investing and financing activities also saw changes, resulting in an overall net decrease in cash and cash equivalents Selected Consolidated Statements of Cash Flows Data (Amounts in 000's) | Statement of Cash Flows | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :----------------------------- | :----------------------------- | | Net (loss) income | $(447) | $924 | | Net cash provided by operating activities | $2,119 | $5,047 | | Net cash used in investing activities | $(1,973) | $(4,846) | | Net cash used in financing activities | $(3,215) | $(14,391) | | Net decrease in cash and cash equivalents | $(3,069) | $(14,190) | | Cash and cash equivalents, beginning of period | $18,860 | $29,582 | | Cash and cash equivalents, end of period | $15,791 | $15,392 | Supplemental Financial Data & Reconciliations This section provides supplemental operating results for various periods and reconciliations of GAAP measures to non-GAAP metrics like station operating income and trailing 12-month consolidated EBITDA Three Months Ended June 30, 2025 & 2024 Supplemental Data Supplemental data for the three months ended June 30, 2025, provides a breakdown of operating results under actual, same station, and pro forma bases, showing consistent revenue and operating income declines across these views Operating Results (Three Months Ended June 30, 2025 vs. 2024, Amounts in 000's) | Metric | Actual 2025 | Actual 2024 | Same Station 2025 | Same Station 2024 | Pro Forma 2025 | Pro Forma 2024 | | :------------------------ | :---------- | :---------- | :---------------- | :---------------- | :------------- | :------------- | | Net operating revenue | $28,229 | $29,716 | $27,575 | $29,458 | $28,229 | $30,256 | | Station operating expense | 22,226 | 23,305 | 21,656 | 23,125 | 22,226 | 23,692 | | Corporate G&A | 3,074 | 3,004 | 3,074 | 3,003 | 3,074 | 3,004 | | Depreciation & amortization | 1,267 | 1,258 | 1,158 | 1,210 | 1,267 | 1,350 | | Other operating expense, net | 253 | 6 | 253 | 6 | 253 | 6 | | Operating income | $1,409 | $2,143 | $1,434 | $2,114 | $1,409 | $2,204 | Six Months Ended June 30, 2025 & 2024 Supplemental Data For the six months ended June 30, 2025, supplemental data reveals operating losses across actual, same station, and pro forma bases, with net operating revenue and station operating expense showing declines compared to the previous year Operating Results (Six Months Ended June 30, 2025 vs. 2024, Amounts in 000's) | Metric | Actual 2025 | Actual 2024 | Same Station 2025 | Same Station 2024 | Pro Forma 2025 | Pro Forma 2024 | | :------------------------ | :---------- | :---------- | :---------------- | :---------------- | :------------- | :------------- | | Net operating revenue | $52,441 | $55,010 | $51,194 | $54,742 | $52,441 | $56,178 | | Station operating expense | 44,189 | 45,764 | 42,998 | 45,580 | 44,189 | 46,679 | | Corporate G&A | 6,241 | 6,087 | 6,241 | 6,087 | 6,241 | 6,087 | | Depreciation & amortization | 2,593 | 2,456 | 2,341 | 2,408 | 2,593 | 2,685 | | Other operating expense, net | 307 | 977 | 307 | 977 | 307 | 977 | | Operating loss | $(889) | $(274) | $(693) | $(310) | $(889) | $(250) | Reconciliation of GAAP Operating Income to Station Operating Income The reconciliation shows how GAAP operating income (loss) is adjusted by adding back corporate general and administrative expenses, other operating expenses, and depreciation and amortization to arrive at station operating income, a non-GAAP measure Reconciliation of GAAP Operating Income to Station Operating Income (Amounts in 000's) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Operating income (loss) | $1,409 | $2,143 | $(889) | $(274) | | Plus: Corporate general and administrative | 3,074 | 3,004 | 6,241 | 6,087 | | Plus: Other operating expense, net | 253 | 6 | 307 | 977 | | Plus: Depreciation and amortization | 1,267 | 1,258 | 2,507 | 2,365 | | Station operating income | $6,003 | $6,411 | $8,166 | $9,155 | Reconciliation of GAAP Net Income to Trailing 12-Month Consolidated EBITDA The reconciliation details the adjustments from GAAP net income (loss) to arrive at trailing 12-month consolidated EBITDA, which stood at $9.6 million as of June 30, 2025, resulting in a leverage ratio of 0.52 Reconciliation of GAAP Net Income to Trailing 12-Month Consolidated EBITDA (Amounts in 000's) | Metric | Trailing 12 Months Ended June 30, 2025 | | :------------------------------------------ | :------------------------------------- | | Net income (loss) | $2,089 | | Total exclusions (Gain/loss on sale of assets, Other income) | $999 | | Consolidated adjusted net income (loss) | $1,090 | | Plus: Interest expense | $448 | | Plus: Income tax (benefit) expense | $535 | | Plus: Depreciation & amortization expense | $5,420 | | Plus: Non-cash compensation | $2,107 | | Trailing twelve month consolidated EBITDA | $9,600 | | Total long-term debt, including current maturities | $5,000 | | Leverage ratio | 0.52 | Reconciliation of Actual to Same Station Operating Income This reconciliation provides a detailed breakdown of adjustments made to actual operating results to derive same station operating income, accounting for acquisitions and dispositions not included in the entire comparable period Reconciliation of Actual to Same Station Operating Income (Three Months Ended June 30, Amounts in 000's) | Metric | Actual 2025 | Adjustments for Acquisitions and Dispositions | Same Station 2025 | Actual 2024 | Adjustments for Acquisitions and Dispositions | Same Station 2024 | | :------------------------ | :---------- | :-------------------------------------------- | :---------------- | :---------- | :-------------------------------------------- | :---------------- | | Net operating revenue | $28,229 | $(654) | $27,575 | $29,716 | $(258) | $29,458 | | Station operating expense | 22,226 | (570) | 21,656 | 23,305 | (180) | 23,125 | | Corporate G&A | 3,074 | - | 3,074 | 3,004 | (1) | 3,003 | | Depreciation & amortization | 1,267 | (109) | 1,158 | 1,210 | (48) | 1,210 | | Other operating expense, net | 253 | - | 253 | 6 | - | 6 | | Operating income | $1,409 | $25 | $1,434 | $2,143 | $(29) | $2,114 | Reconciliation of Actual to Same Station Operating Income (Six Months Ended June 30, Amounts in 000's) | Metric | Actual 2025 | Adjustments for Acquisitions and Dispositions | Same Station 2025 | Actual 2024 | Adjustments for Acquisitions and Dispositions | Same Station 2024 | | :------------------------ | :---------- | :-------------------------------------------- | :---------------- | :---------- | :-------------------------------------------- | :---------------- | | Net operating revenue | $52,441 | $(1,247) | $51,194 | $55,010 | $(268) | $54,742 | | Station operating expense | 44,189 | (1,191) | 42,998 | 45,580 | (184) | 45,580 | | Corporate G&A | 6,241 | - | 6,241 | 6,087 | - | 6,087 | | Depreciation & amortization | 2,593 | (252) | 2,341 | 2,408 | (48) | 2,408 | | Other operating expense, net | 307 | - | 307 | 977 | - | 977 | | Operating loss | $(889) | $196 | $(693) | $(274) | $(36) | $(310) |
Saga munications(SGA) - 2025 Q2 - Quarterly Results