Saga Reports Q4 Revenue Increase

Saga Communications, today reported free cash flow increased 2.2% to $6.8 million for the quarter ended December 31, 2015.

Gross revenue without political increased 2.1% for the quarter.

• Net revenue (including political) decreased 2.1% to $35.6 million.  
• Station operating expense increased 1.0% to $25.9 million (station operating expense includes depreciation and amortization attributable to the stations).  
• Operating income decreased $1.4 million primarily due to the recognition of a $1.2 million gain during the 4th Quarter of 2014 in other operating income from the sale of four of the Company's radio networks and the non-cash impairment charge of $1.9 million during the quarter in 2014 compared to $874 thousand in 2015. 
• Net income for the period was $3.7 million ($0.63 per fully diluted share). 

Free cash flow increased 2.9% to $21.6 million for the year ended December 31, 2015.  Gross revenue without political increased 0.7% for the year.  Net revenue (including political) decreased 0.9% to $132.9 million.  Operating income decreased $1.9 million.  Net income for the year was $13.4 million ($2.29 per fully diluted share).

Capital expenditures were down $600 thousand to $1.1 million in the 4th quarter compared to $1.7 million for the same period last year.  For the year capital expenditures were approximately even with last year at $5.5 million.  The Company currently expects to spend approximately $5.0 million to $5.5 million for capital expenditures during 2016.

During the 4th Quarter the Company entered into an Asset Purchase Agreement to purchase WLVQ – FM in Columbus, OH for $13.0 million as well as disposing of its last radio network, the Illinois Radio Network.  The Company begin operating WLVQ – FM pursuant to a Local Marketing Agreement as of November 16, 2015.  The Company closed on its purchase of WLVQ on February 3, 2016.