Saga Communications, Inc. Reports 4th Quarter and Year End 2020 Results

March 12, 2021 9:00 AM EST

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GROSSE POINTE FARMS, Mich., March 12, 2021 /PRNewswire/ -- Saga Communications, Inc. (Nasdaq - SGA) reported today that fourth quarter and year end 2020 revenue and the related net income continue to be impacted by the COVID-19 pandemic.  Net Revenue was $28.8 million for the fourth quarter ended December 31, 2020 which was a 19.1% increase over net revenue for the third quarter ended September 30, 2020.  Net Revenue for the fourth quarter in 2019 was $31.8 million.  Station operating expense decreased $1.9 million to $21.1 million for the quarter compared to the same period last year.  Station operating income was $9.1 million for the quarter compared to $10.5 million for the fourth quarter last year and operating income was $5.0 million for the quarter compared to $5.4 million for the same period last year.  Net income was $2.3 million and diluted earnings per share were $0.38 in the fourth quarter of 2020.  Free cash flow was $5.1 million for the quarter compared to $5.4 million for the same period last year.    

For the twelve months ended December 31, 2020 net revenue was $95.8 million. Station operating expense decreased $11.1 million to $81.6 million compared to the same period last year.  Station operating income was $20.4 million for the year ended December 31, 2020 compared to $37.0 million for year-end 2019 and an operating loss of -$1.3 million for the year compared to operating income of $18.8 million for 2019.  Net loss for the twelve-month period was $1.9 million which includes a non-cash impairment charge of $5.2 million.  Without the impairment charge the company would have reported Net income of $1.7 million for the period.  Diluted loss per share was -$0.32 and free cash flow was $7.6 million for the year.

The Company's balance sheet reflects $51.4 million in cash on hand as of December 31, 2020 and $56.0 million as of March 8, 2021.  The Company's total bank debt remained at $10 million as of year-end 2020. 

Capital expenditures in the fourth quarter were $434 thousand compared to $1.1 million for the same period last year.  For the twelve-month period capital expenditures were $2.3 million compared to $5.7 million for the same period last year.  The Company expects to spend approximately $4.5 – 5.5 million for capital expenditures during 2021.

Saga's 2020 4th Quarter and Year End conference call will be on Friday, March 12, 2021 at 11:00 a.m. EST.  The dial-in number for the call is 973/528-0008.  Enter conference code 714210.  A transcript of the call will be posted to the Company's website as soon as it is available after the call.  

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. EST on March 12, 2021 to SagaIR@sagacom.com. 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.

The attached Selected Supplemental Financial Data tables disclose the Company's trailing twelve-month consolidated EBITDA and a reconciliation of operating income to station operating income. 

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 same station financial information, free cash flow, station operating income, trailing 12-month consolidated EBITDA, and consolidated net 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 Financial Data and Supplemental Financial Data tables.

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, changes in the radio broadcast industry in general, and the effects of the ongoing COVID-19 pandemic, 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.  

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, 35 AM radio stations and 79 metro signals. For additional information, contact us at (313) 886-7070 or visit our website at www.sagacom.com.

 

 

Saga Communications, Inc.

Selected Consolidated Financial Data

For the Three and Twelve Months Ended

December 31, 2020 and 2019

(amounts in 000's except per share data)

(Unaudited)

 

Three Months Ended

Year Ended

December 31, 

December 31, 

2020

2019

2020

2019

Operating Results

Net operating revenue

$

28,753

$

31,791

$

95,813

$

123,072

Station operating expenses

21,119

23,050

81,586

92,692

Corporate general and administrative

2,651

3,281

11,574

11,460

Other operating expense (income), net

(13)

26

(1,247)

112

Impairment of broadcast licenses

5,149

Operating income (loss)

4,996

5,434

(1,249)

18,808

Interest expense

75

163

340

735

Interest income

(7)

(125)

(148)

(610)

Other income, net

(20)

(5)

(233)

(16)

Income (loss) before income tax expense

4,948

5,401

(1,208)

18,699

Income tax expense

2,680

1,560

705

5,420

Net income (loss)

$

2,268

$

3,841

$

(1,913)

$

13,279

Earnings (loss) per share:

Basic

$

0.38

$

0.64

$

(0.32)

$

2.23

Diluted

$

0.38

$

0.64

$

(0.32)

$

2.23

Weighted average common shares

5,880

5,817

5,871

5,834

Weighted average common and common equivalent shares

5,880

5,817

5,871

5,834

Free Cash Flow

Net income (loss)

$

2,268

$

3,841

$

(1,913)

$

13,279

Plus: Depreciation and amortization:

Radio Stations

1,435

1,747

6,204

6,641

Corporate

96

90

320

304

Deferred tax (benefit) provision

1,380

320

(545)

1,420

Non-cash compensation

422

473

2,221

2,129

Other operating expense (income), net

(13)

26

(1,247)

112

Other income, net

(20)

(5)

(233)

(16)

Impairment of intangible assets

5,149

Less: Capital expenditures

(434)

(1,065)

(2,314)

(5,732)

Free cash flow

$

5,134

$

5,427

$

7,642

$

18,137

 

December 31, 

2020

2019

Balance Sheet Data

Working capital

$

57,034

$

49,219

Net fixed assets

$

54,885

$

58,711

Net intangible assets and other assets

$

120,635

$

126,963

Total assets

$

246,488

$

252,394

Long-term debt

$

10,000

$

10,000

Stockholders' equity

$

190,542

$

192,352

 

 

Saga Communications, Inc.

Selected Supplemental Financial Data

For the Years Ended December 31, 2020 and 2019

(amounts in 000's except ratios)

(Unaudited)

 

12 Months Ended

December 31, 

2020

2019

12 Month Consolidated Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") (1) and Leverage Ratio

Net income (loss)

$

(1,913)

$

13,279

Exclusions:

Gain (loss) on sale of assets

1,247

(112)

Gain on insurance proceeds

233

16

Interest income

148

610

Impairment of intangible assets

(5,149)

Other

133

190

Total exclusions

(3,388)

704

Consolidated adjusted net income (1)

1,475

12,575

Plus:

Interest expense

340

735

Income tax expense (benefit)

705

5,420

Depreciation & amortization expense

6,524

6,945

Non-cash stock based compensation expense

2,221

2,129

Twelve month consolidated EBITDA (1)

$

11,265

$

27,804

Total long-term debt, including current maturities

$

10,000

$

10,000

Divided by twelve month consolidated EBITDA (1)

11,265

27,804

Leverage ratio

0.89

0.36

(1)

As defined in the Company's credit facility.

 

 

Saga Communications, Inc.

Selected Supplemental Financial Data

For the Three and Twelve Months Ended

December 31, 2020 and 2019

(amounts in 000's except per share data)

(Unaudited)

 

Three Months Ended

Year Ended

December 31, 

December 31, 

2020

2019

2020

2019

Operating income to station operating income reconciliation:

Operating income (loss)

$

4,996

$

5,434

$

(1,249)

$

18,808

Plus:

Corporate general and administrative

2,651

3,281

11,574

11,460

Other operating expense (income), net

(13)

26

(1,247)

112

Impairment of broadcast licenses

5,149

Station depreciation and amortization

1,435

1,747

6,204

6,641

Station operating income

$

9,069

$

10,488

$

20,431

$

37,021

 

Saga Communications, Inc. logo. (PRNewsFoto/Saga Communications, Inc.) (PRNewsfoto/Saga Communications, Inc.)

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SOURCE Saga Communications, Inc.



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