Saga Communications, Inc. Reports 4th Quarter and Year End 2014 Results

GROSSE POINTE FARMS, Mich., March 10, 2015 /PRNewswire/ -- Saga Communications, Inc. (NYSE MKT: SGA) today reported net operating revenue increased 7.7% to $36.4 million for the quarter ended December 31, 2014 compared to $33.8 million for the same period last year.  Station operating expense was $25.6 million (station operating expense includes depreciation and amortization attributable to the stations) compared to $23.8 million for the same period last year.  The $1.8 million increase was primarily due to the expense attributable to agreements entered into by the Company in the fourth quarter of 2014 to license historic data from Nielson Audio, Inc. in selected markets in order to enhance the benefit of licenses to receive Nielson reports and services during future periods in those markets which were also entered into in the fourth quarter.  Operating income from continuing operations was $7.7 million.  Net income for the period was $4.4 million ($0.76 per fully diluted share) and free cash flow was $6.7 million compared to $5.6 million for the same period last year. 

Net operating revenue for the year ended December 31, 2014 increased 3.5% to $134.0 million compared to $129.5 million for the same period last year.  Operating income from continuing operations was $26.0 million.  Net income for the period was $14.9 million ($2.55 per fully diluted share) and free cash flow was $21.0 million.  Station operating expense was $98.4 million (station operating expense includes depreciation and amortization attributable to the stations).

The Company recognized a $1.9 million impairment charge to intangible assets during the quarter ended December 31, 2014 as a result of our annual impairment testing.

Capital expenditures were $1.7 million in the 4th quarter which was approximately the same as the same period last year.  The Company currently expects to spend approximately $4.5 million to $5.0 million for capital expenditures during 2015. 

Saga utilizes certain financial measures that are not calculated in accordance with generally accepted accounting principles (GAAP) to assess its financial performance.  Such non-GAAP measures include free cash flow, trailing 12 month consolidated EBITDA, and leverage ratio. These non-GAAP measures are generally recognized by the broadcasting industry as measures of performance and are used by Saga to assess its financial performance including, but not limited to, evaluating individual station and market-level performance, evaluating overall operations, as a primary measure for incentive based compensation of executives and other members of management and as a measure of financial position.  Saga's management believes these non-GAAP measures are used by analysts who report on the industry and by investors to provide meaningful comparisons between broadcasting groups, as well as an indicator of their market value.  These measures are not measures of liquidity or of performance in accordance with GAAP, and should be viewed as a supplement to and not as a substitute for the results of operations presented on a GAAP basis including net operating revenue, operating income, and net income. Reconciliations for all of the non-GAAP financial measures to the most directly comparable GAAP measure are attached in the Selected Consolidated and Supplemental Financial Data tables.

Saga is a broadcasting company whose business is devoted to acquiring, developing and operating broadcast properties.  Saga owns or operates broadcast properties in 25 markets, including 62 FM and 30 AM radio stations, 1 state radio network, 4 television stations and 5 low-power television stations. For additional information, contact us at (313) 886-7070 or visit our website at www.sagacom.com.

Saga's 2014 4th Quarter and Year End conference call will be on Tuesday, March 10, 2015 at 11:00 a.m. EDT.  The dial-in number for all calls is (612) 234-9960.  A transcript of the call will be posted to the Company's website.  

The Company requests that all parties that have a question that they would like to submit to the Company to please email the inquiry by 10:00 a.m. EDT on March 10, 2015 to [email protected]. The Company will discuss, during the limited period of the conference call, those inquiries it deems of general relevance and interest. Only inquiries made in compliance with the foregoing will be discussed during the call.

This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995.  Words such as "believes," "expects," "anticipates," "guidance" and similar expressions are intended to identify forward-looking statements.  Key risks, including risks associated with Saga's ability to effectively integrate the stations it acquires and the impact of federal regulation on Saga's business, are described in the reports Saga periodically files with the U.S. Securities and Exchange Commission, including Item 1A of our Annual Report on Form 10-K.  Readers should note that these statements may be impacted by several factors, including national and local economic changes and changes in the radio and television broadcast industry in general, as well as Saga's actual performance.  Results may vary from those stated herein and Saga undertakes no obligation to update the information contained here.

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/saga-communications-inc-reports-4th-quarter-and-year-end-2014-results-300047683.html

SOURCE Saga Communications, Inc.