Saga Reports Advertising Revenue Significant Decline

Saga Communications, Inc. Wednesday reported net income increased to $1.7 million from $1.4 million for the same period last year.  Net revenue of $26.1 million for the quarter compared to $27.8 million for the 1st quarter last year.

Other highlights:

• Gross political revenue increased $963 thousand for the quarter this year to $1.0 million.
• Station operating expense decreased $964 thousand to $22.2 million and operating income increased $202 thousand to $2.2 million.
• Diluted earnings per share were $0.28/share in the 1st quarter of 2020 compared to $0.23/share during the same period in 2019. 
• Free cash flow was $1.5 million for the quarter ended March 31, 2020 compared to $2.6 million for the same period last year.
• A $1.4 million gain on the sale of the land and building at one of the Company's tower sites is excluded in the free cash flow calculation.    

The Company had $46.3 million in cash on hand as of March 31, 2020 and $47.0 million as of May 4, 2020.  The Company's total bank debt was $10 million as of the end of the quarter.  Including the $0.32 per share dividend which was paid on April 10, 2020, the Company has paid over $71.3 million in dividends since December 3, 2012.

Ed Christian

Saga CEO Ed Christian stated Wednesday "The COVID-19 global pandemic continues to spread, and state and local 'shelter-in-place' orders in the states where we operate have impacted and restricted various aspects of our business.

"Our operations are functioning, subject to regulated restrictions and safety constraints we have enacted in order to protect our employees and customers. As a result of the current challenging economic conditions, our reported results for the three months ended March 31, 2020 are not reflective of current market conditions.

"The Company's advertising revenue has declined significantly as a result of the pandemic and these unfavorable trends have continued into May and June. While we cannot reasonably estimate the length or severity of this pandemic, an extended economic slowdown in the U.S. could materially impact our consolidated financial position, consolidated results of operations, and consolidated cash flows in fiscal 2020 or beyond.