Saga Communications Reports Revenue Drop

Saga Communications, Inc. today reported earnings for the three and six months ended June 30, 2017.  Continuing operations include the Company's radio stations.  The Company's television stations are classified as held for sale and are being reported as discontinued operations due to the pending sale which is expected to close during the third quarter of 2017.

The Company announced net revenue of $30.3 million from continuing operations for the quarter ended June 30, 2017 compared to $30.9 million for the same period last year. Station operating expense decreased to $21.4 million for the quarter compared to $21.8 million last year and station operating income was $5.9 million for the quarter compared to $6.4 million last year.

The Company's net revenue included in discontinued operations for the quarter ended June 30, 2017 was $5.7 million compared to $5.6 million for the same period last year.  Station operating expense and station operating income included in discontinued operations were flat for the comparable periods at $3.6 million and $2.0 million respectively.

Net income for the quarter ended June 30, 2017 was $4.5 million ($0.77 per fully diluted share) as compared to $4.8 million ($0.81 per fully diluted share) for the same period last year.

The Company's net revenue of $56.4 million from continuing operations for the six months ended June 30, 2017 compared to $58.3 million for the same period last year. Station operating expense decreased to $42.8 million for the six month period compared to $43.0 million last year and station operating income was $7.9 million for the six months compared to $10.0 million last year.  Gross political revenue from continuing operations were $289 thousand for the six month period this year compared to $1.4 million last year.

The Company entered into agreements on May 9, 2017 to sell it's television stations for approximately $66.6 million and to purchase radio stations in Charleston and Hilton Head, SC for approximately $23.0 million.  Both the sale and purchase are expected to occur during the third quarter.

The Company expects to use both it's existing cash on hand and the net cash remaining after the sale of the television stations and the purchase of the Charleston and Hilton Head radio stations for continued station acquisitions, debt reduction and other corporate purposes.