Saga Communications Reports Downturn

Saga Communications’ earning reflect continuing challenges in Q2 2024.

Here’s a summary of the key points:

Financial Performance:

• Net revenue decreased by 1.5% to $28.7 million compared to the same period last year.
• Station operating expenses increased by 5.1% to $23.5 million.
• Operating income dropped to $2.1 million from $4.3 million in Q2 2023.
• Station operating income (a non-GAAP financial measure) decreased to $6.4 million from $8.0 million.

Net Income and Earnings Per Share:

• Net income for Q2 2024 was $2.5 million, down from $3.4 million in the previous year.
• Diluted earnings per share stood at $0.40.

Six-Month Performance:

• Over the six-month period ending June 30, 2024, Saga faced consistent challenges.
• Net revenue for the half-year decreased by 2.0% to $53.4 million.
• The company reported an operating loss of $0.3 million, contrasting with the $5.2 million operating income from the same period last year.
• Six-month net income dropped significantly to $0.9 million from $4.3 million.

Expansion and Dividends:

• Saga expanded its portfolio by acquiring five radio stations and one translator in Lafayette, IN.
• Despite these additions, the company maintained its commitment to shareholders by paying a $0.25 per share quarterly dividend on June 28, 2024.
• Total dividends paid by Saga since 2012 have exceeded $132 million.

Financial Position:

• Saga’s balance sheet showed $24.1 million in cash and short-term investments.
• The company drew $5.0 million from its $50.0 million revolving credit facility to support recent acquisitions.
• Anticipated capital expenditures for the full year 2024 range from $5.0 to $5.5 million.

The period also marked an expansion for Saga, which closed on the acquisition of five radio stations and one translator in Lafayette, IN, as of May 31, 2024. This move is part of the company's strategy to broaden its market presence and build on its portfolio.