Saga Reports Increased Revenue

Saga Communications, Inc. today reported financial results for the quarter ended September 30, 2022. 

Despite strong underlying performance the results were impacted by one-time payments related to the passing of our founder Ed Christian. The actual results as well as the results adjusted for the impact of his passing are reported in this financial results release. 

For The Quarter:

• Net revenue increased 3.9% to $30.0 million for the quarter ended September 30, 2022 compared to $28.8 million for the same period last year. 
• Station operating expense increased 2.8% for the quarter to $22.3 million compared to the same period last year. 
• Station operating income increased 4.1% to $8.9 million, and operating income was $1.1 million compared to $4.6 million for the same quarter last year. 
• Free cash flow was $1.6 million for the quarter compared to $4.0 million for the same period last year. Capital expenditures for the quarter and the same period last year were $1.2 million. 
• We had a net loss of $104 thousand for the quarter compared to net income of $3.5 million for the third quarter last year. 
• Diluted earnings per share were $(0.01) in the third quarter of 2022.

As a result of Ed Christian’s passing, the Company is required to make several payments to his estate as outlined in his employment agreement. These expenses were accrued as of September 30, 2022 increasing the reported corporate general and administrative expense line item by $3.8 million for both the quarter and nine-month period ended September 30, 2022. Without these expenses operating income would have increased 5.8% to $4.9 million, free cash flow would have increased 36.5% to $5.4 million and net income would have increased 7.9% to $3.7 million. Net income per share would have been $0.62 per share as compared to $0.58 per share for the same period last year.

For The Nine-Month Period

• Net revenue increased 7.0% to $84.8 million for the nine-month period ended September 30, 2022 compared to $79.2 million for the same period last year. 
• Station operating expense increased 4.9% to $64.6 million compared to the same period last year. 
• For the nine-month period, station operating income increased 9.6% to $23.7 million and operating income was $8.1 million compared to $10.1 million for the same period last year. 
• Free cash flow was $6.7 million for the nine-month period compared to $9.9 million for the same period last year. 
• Capital expenditures for the nine months were $4.7 million compared to $2.7 million for the same period last year. Net income was $4.9 million for the nine-month period compared to $7.5 million for the same period last year. Diluted earnings per share were $0.82 in the first nine months of 2022.
• Adjusted for the accruals related to Ed Christian’s passing, as of September 30, 2022, as outlined above for the nine-month period ended September 30, 2022, operating income would have increased 18.4% to $12.0 million, free cash flow would have increased 5.9% to $10.5 million and net income would have increased 17.3% to $8.8 million. 
• Net income per share would have been $1.45 per share as compared to $1.25 per share for the same period last year.