Saga Reports 4Q Revenue Increased 2.3 Percent

Saga Communications, Inc. today reported net income increased $9.9 million for the quarter and $36.5 million for the year.  The results for the quarter and the year were affected by the previously announced sale of the Company's television stations and purchase of radio stations in Charleston and Hilton Head, SC on September 1, 2017, the effect of the recently enacted Tax Cuts and Jobs Act, the previously reported sale of a tower in Norfolk, VA on July 22, 2016, the charge for impairment of intangible assets taken this quarter and the reduction in political revenue.   

Net revenue increased 2.3% to $31.5 million for the quarter ended December 31, 2017.  Operating Income decreased $433 thousand to $5.3 million when adjusted for the $1.5 million charge for impairment of intangible assets.  Station operating expense increased 5.4% to $23.2 million (station operating expense includes depreciation and amortization attributable to the stations) primarily due to the acquisition of the Charleston and Hilton Head radio stations.  Same station net revenue decreased 4.2% to $29.5 million primarily due to a decrease in gross political revenue of $1.0 million and same station operating expense decreased 2.5% to $21.5 million for the quarter.  Net income for the fourth quarter was $14.8 million ($2.51 per fully diluted share compared to $0.84 for the same period last year).

Net Revenue decreased 0.7% to $118.2 million for the twelve months ended December 31, 2017.  Operating Income decreased $2.5 million to $18.7 million when adjusted for the $1.5 million charge for impairment of intangible assets in 2017 and the $1.4 million gain on the sale of the Norfolk tower in 2016.  Same station net revenue decreased 3.1% to $115.3 million primarily due to a decrease in gross political revenue of $2.3 million and same station operating expense decreased 1.7% to $85.3 million for the year.  Net income for the year was $54.7 million ($9.27 per fully diluted share compared to $3.09 for the same period last year).