Saga Communications, Inc. reported today that third quarter revenue and related net income continue to be materially impacted by disruptions to businesses and service providers activities due to the COVID-19 pandemic. From the net revenue low point in April the Company's revenue has significantly increased in each of the following months. The Company continues to concentrate on new revenue strategies and enhanced engagement with its existing and new advertisers.
Net revenue increased 43.1% to $24.1 million for the quarter ended September 30, 2020 compared to $16.9 million for the second quarter of 2020. Station operating income was $6.1 million for the quarter. Station operating expense decreased $4.0 million to $19.6 million for the quarter compared to the same period last year. Operating income was $247 thousand with a net loss of $950 thousand for the quarter. Diluted loss per share was -$0.16 in the third quarter of 2020. Results for the quarter include a non-cash impairment charge of $1.4 million. Without the non-cash impairment charge, the Company would have had a net income of $38 thousand or $0.01 per share. Free cash flow was $2.8 million for the quarter.
For the nine months ended September 30, 2020 net revenue was $67.1 million with station operating income of $11.4 million. Station operating expense decreased $9.2 million to $60.5 million compared to the same period last year. For the nine-month period the operating loss was $6.3 million with a net loss of $4.2 million. This includes a non-cash impairment charge of $5.2 million. Diluted loss per share was -$0.70. Free cash flow was $2.5 million for the period.
The Company's balance sheet reflects $48.3 million in cash on hand as of September 30, 2020 and $49.8 million as of November 2, 2020. The Company's total bank debt remained at $10 million as of the end of the quarter. Including the significant impact on its revenue, the Company's trailing twelve-month leverage ratio is an extremely conservative 0.82, per its bank covenant calculation, and below zero when cash on hand is included in the calculation.
Saga is a broadcasting company whose business is devoted to acquiring, developing and operating broadcast properties. Saga owns or operates broadcast properties in 27 markets, including 79 FM radio stations, 34 AM radio stations and 78 metro signals.
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