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 Saga Communications, Inc. Reports 4th Quarter and Year End 2016 Results
   Tuesday, March 07, 2017 9:00:00 AM ET

Saga Communications, Inc. (NYSE MKT: SGA) today reported net revenue increased 4.7% to $37.3 million for the quarter ended December 31, 2016. Operating Income increased 33.0% to $8.4 million. Station operating expense increased 0.4% to $26.0 million (station operating expense includes depreciation and amortization attributable to the stations). Free cash flow increased 12.1% to $7.6 million. Same Station net revenue increased 2.9% to $36.1 million and same station operating expense was flat at $25.4 million. Net income for the fourth quarter was $4.9 million ($0.84 per fully diluted share compared to $0.63 for the same period last year).

Net Revenue increased 7.3% to $142.6 million for the twelve months ended December 31, 2016. Free cash flow increased 13.5% to $24.5 million. Station operating expense increased 4.4% to $101.5 million (station operating expense includes depreciation and amortization attributable to the stations). Operating income increased 30.7% to $31.5 million. Same Station net revenue increased 3.0% to $134.2 million and same station operating expense increased 0.7% to $95.4 million. Net income for the twelve-month period was $18.2 million ($3.09 per fully diluted share compared to $2.29 for the same period last year).

Capital expenditures were $0.7 million in the fourth quarter compared to $1.1 million for the same period last year and $4.9 million for the twelve-month period compared to $5.5 million last year. The Company expects to spend approximately $5.0 million to $6.0 million for capital expenditures during 2017.

Saga’s 2016 4th Quarter and Year End conference call will be on Tuesday, March 7, 2017 at 11:00 a.m. EST. The dial-in number for the call is (612) 234-9960. 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 7, 2017 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 "actual", "same station" and "proforma" information by segment as well as the Company’s trailing 12 month consolidated EBITDA. The "actual" amounts reflect our historical financial results and include the results of operations for stations that we did not own for the entire comparable period. The "same station" amounts reflect only the results of operations for stations that we owned for the entire comparable period. The "proforma" amounts assume all acquisitions in 2015 and 2016 occurred as of January 1, 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 same station financial information, 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.

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.

Saga is a broadcasting company whose business is devoted to acquiring, developing and operating broadcast properties. Saga owns or operates broadcast properties in 26 markets, including 68 FM and 32 AM radio stations, 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 Communications, Inc.
Selected Consolidated Financial Data
For The Three and Twelve Months Ended
December 31, 2016 and 2015
(amounts in 000’s except per share data)
(Unaudited)
                                                            Three Months Ended                  Twelve Months Ended
                                                            December 31,                        December 31,
                                                            2016               2015             2016               2015
Operating Results
Net operating revenue                                       $         37,289   $        35,606  $       142,591    $        132,856
Station operating expense                                   25,978             25,868           101,542            97,268
Corporate general and administrative                        2,915              2,449            10,980             10,091
Other operating (income) expense                            (8)                94               (1,393)            541
Impairment of intangible assets                             -                  874              -                  874
Operating income                                            8,404              6,321            31,462             24,082
Interest expense                                            202                174              776                888
Write-off of debt issuance costs                            -                  -                -                  557
Other income                                                -                  -                -                  (417)
Income before income tax expense                            8,202              6,147            30,686             23,054
Income tax expense                                          3,265              2,450            12,500             9,640
Net income                                                  $           4,937  $          3,697 $         18,186   $         13,414
Earnings Per Share
                   Basic                                    $             0.84 $           0.63 $             3.10 $             2.31
                   Diluted                                  $             0.84 $           0.63 $             3.09 $             2.29
Weighted average common shares                              5,785              5,732            5,761              5,706
Weighted average common and common
                   equivalent shares                        5,797              5,741            5,771              5,740
Free Cash Flow
Net income                                                  $           4,937  $          3,697 $         18,186   $         13,414
Plus: Depreciation and amortization:
                   Station                                  1,804              1,842            6,942              6,534
                   Corporate                                114                56               321                290
                   Write-off of debt issuance costs         -                  -                -                  557
Deferred tax provision                                      995                910              3,160              3,640
Non-cash compensation                                       507                455              2,101              1,655
Other operating (income) expense                            (8)                94               (1,393)            541
Impairment of intangible assets                             -                  874              -                  874
Other income                                                -                  -                -                  (417)
Less: Capital expenditures                                  (712)              (1,116)          (4,861)            (5,543)
Free cash flow                                              $           7,637  $          6,812 $         24,456   $         21,545
                                                                                                December 31,
                                                                                                2016               2015
Balance Sheet Data
                   Working capital                                                              $         37,749   $         33,557
                   Net fixed assets                                                             $         56,562   $         58,131
                   Net intangible assets and other assets                                       $       110,664    $         98,545
                   Total assets                                                                 $       221,020    $       204,571
                   Long-term debt (including current
                   portion of $1,078 and $0, respectively)                                      $         36,365   $         36,365
                   Stockholders’ equity                                                         $       134,982    $       122,816
Saga Communications, Inc.
Selected Supplemental Financial Data
For the Three Months Ended
December 31, 2016 and 2015
(amounts in 000’s except per share data)
(Unaudited)
                                      Actual                         Same Station (1)               Pro Forma (2)
                                      Three Months Ended             Three Months Ended             Three Months Ended
                                      December 31,                   December 31,                   December 31,
                                      2016            2015           2016           2015            2016            2015
Consolidated
Net operating revenue                 $      37,289   $    35,606    $      36,134  $      35,118   $      37,289   $      36,187
Station operating expense             25,978          25,868         25,378         25,376          25,978          26,369
Corporate general and administrative  2,915           2,449          2,915          2,449           2,915           2,449
Other operating (income) expense      (8)             94             (14)           24              (8)             94
Impairment of intangible assets       -               874            -              874             -               874
Operating income                      8,404           6,321          $        7,855 $        6,395  8,404           6,401
Interest expense                      202             174                                           202             174
Write-off of debt issuance costs      -               -                                             -               -
Other income                          -               -                                             -               -
Income before income tax expense      8,202           6,147                                         8,202           6,227
Income tax expense                    3,265           2,450                                         3,265           2,483
Net income                            $        4,937  $      3,697                                  $        4,937  $        3,744
Earnings per share:
Basic                                 $          0.84 $        0.63                                 $          0.84 $          0.64
Diluted                               $          0.84 $        0.63                                 $          0.84 $          0.64
                                      Actual                         Same Station (1)               Pro Forma (2)
                                      Three Months Ended             Three Months Ended             Three Months Ended
                                      December 31,                   December 31,                   December 31,
                                      2016            2015           2016           2015            2016            2015
Radio Segment
Net operating revenue                 $      30,747   $    29,963    $      29,592  $      29,475   $      30,747   $      30,544
Station operating expense             22,042          22,122         21,442         21,630          22,042          22,623
Other operating (income) expense      37              85             31             15              37              85
Impairment of intangible assets       -               874            -              874             -               874
Operating income                      $        8,668  $      6,882   $        8,119 $        6,956  $        8,668  $        6,962
                                      Actual                         Same Station (1)               Pro Forma (2)
                                      Three Months Ended             Three Months Ended             Three Months Ended
                                      December 31,                   December 31,                   December 31,
                                      2016            2015           2016           2015            2016            2015
Television Segment
Net operating revenue                 $        6,542  $      5,643   $        6,542 $        5,643  $        6,542  $        5,643
Station operating expense             3,936           3,746          3,936          3,746           3,936           3,746
Other operating (income) expense      (45)            (1)            (45)           (1)             (45)            (1)
Impairment of intangible assets       -               -              -              -               -               -
Operating income                      $        2,651  $      1,898   $        2,651 $        1,898  $        2,651  $        1,898
                                      Actual                         Same Station (1)               Pro Forma (2)
                                      Three Months Ended             Three Months Ended             Three Months Ended
                                      December 31,                   December 31,                   December 31,
                                      2016            2015           2016           2015            2016            2015
Depreciation and amortization
                   by segment
Radio Segment                         $        1,440  $      1,459   $        1,388 $        1,459  $        1,440  $        1,503
Television Segment                    364             383            364            383             364             383
Corporate and Other                   114             56             114            56              114             56
                                      $        1,918  $      1,898   $        1,866 $        1,898  $        1,918  $        1,942
(1)                Same station includes only the results of stations we owned and operated for the entire comparable period.
(2)                Pro Forma results assume all acquisitions in 2015 and 2016 occurred as of January 1, 2015.
Saga Communications, Inc.
Selected Supplemental Financial Data
For the Twelve Months Ended
December 31, 2016 and 2015
(amounts in 000’s except per share data)
(Unaudited)
                                      Actual                           Same Station (1)               Pro Forma (2)
                                      Twelve Months Ended              Twelve Months Ended            Twelve Months Ended
                                      December 31,                     December 31,                   December 31,
                                      2016            2015             2016           2015            2016            2015
Consolidated
Net operating revenue                 $    142,591    $    132,856     $    134,206   $    130,287    $    142,591    $    139,458
Station operating expense             101,542         97,268           95,389         94,726          101,557         102,401
Corporate general and administrative  10,980          10,091           10,980         10,091          10,980          10,091
Other operating (income) expense      (1,393)         541              (1,410)        65              (1,393)         541
Impairment of intangible assets       -               874              -              874             -               874
Operating income                      31,462          24,082           $      29,247  $      24,531   31,447          25,551
Interest expense                      776             888                                             776             888
Write-off of debt issuance costs      -               557                                             -               557
Other income                          -               (417)                                           -               (417)
Income before income tax expense      30,686          23,054                                          30,671          24,523
Income tax expense                    12,500          9,640                                           12,494          10,242
Net income                            $      18,186   $      13,414                                   $      18,177   $      14,281
Earnings per share:
Basic                                 $          3.10 $          2.31                                 $          3.10 $          2.46
Diluted                               $          3.09 $          2.29                                 $          3.09 $          2.44
                                      Actual                           Same Station (1)               Pro Forma (2)
                                      Twelve Months Ended              Twelve Months Ended            Twelve Months Ended
                                      December 31,                     December 31,                   December 31,
                                      2016            2015             2016           2015            2016            2015
Radio Segment
Net operating revenue                 $    118,955    $    111,792     $    110,570   $    109,223    118,955         118,394
Station operating expense             86,799          83,188           80,646         80,646          86,814          88,321
Other operating (income) expense      (1,351)         499              (1,368)        23              (1,351)         499
Impairment of intangible assets       -               874              -              874             -               874
Operating income                      $      33,507   $      27,231    $      31,292  $      27,680   $      33,492   $      28,700
                                      Actual                           Same Station (1)               Pro Forma (2)
                                      Twelve Months Ended              Twelve Months Ended            Twelve Months Ended
                                      December 31,                     December 31,                   December 31,
                                      2016            2015             2016           2015            2016            2015
Television Segment
Net operating revenue                 $      23,636   $      21,064    $      23,636  $      21,064   23,636          21,064
Station operating expense             14,743          14,080           14,743         14,080          14,743          14,080
Other operating (income) expense      (42)            32               (42)           32              (42)            32
Impairment of intangible assets       -               -                -              -               -               -
Operating income                      $        8,935  $        6,952   $        8,935 $        6,952  $        8,935  $        6,952
                                      Actual                           Same Station (1)               Pro Forma (2)
                                      Twelve Months Ended              Twelve Months Ended            Twelve Months Ended
                                      December 31,                     December 31,                   December 31,
                                      2016            2015             2016           2015            2016            2015
Depreciation and amortization
                   by segment
Radio Segment                         $        5,555  $        5,135   $        4,663 $        4,844  $        5,570  $        5,705
Television Segment                    1,387           1,399            1,387          1,399           1,387           1,399
Corporate and Other                   321             290              321            290             321             290
                                      $        7,263  $        6,824   $        6,371 $        6,533  $        7,278  $        7,394
(1)                Same station includes only the results of stations we owned and operated for the entire comparable period.
(2)                Pro Forma results assume all acquisitions in 2015 and 2016 occurred as of January 1, 2015.
Saga Communications, Inc.
Selected Supplemental Financial Data
December 31, 2016
(amounts in 000’s except ratios)
(Unaudited)
                                                                                                                                                        Trailing
                                                                                         Twelve Months Ended               Add:                         Twelve Months Ended
                                                                                         December 31,                      Proforma                     December 31,
                                                                                         2016                              Acquisitions                 2016                2015
Trailing 12 Month Consolidated Earnings Before Interest,
Taxes, Depreciation and Amortization ("EBITDA") (1)
Net income                                                                               $                         18,186  $                       (9)  $           18,177  $          14,384
Exclusions:
                             Gain (loss) on sale of assets                               1,393                             -                            1,393               (541)
                             Gain on insurance claim                                     -                                 -                            -                   417
                             Impairment of intangible assets                             -                                 -                            -                   (874)
                             Write-off of debt issuance costs                            -                                 -                            -                   (557)
                             Other                                                       298                               -                            298                 119
Total exclusions                                                                         1,691                             -                            1,691               (1,436)
Consolidated adjusted net income (1)                                                     16,495                            (9)                          16,486              15,820
Plus:  Interest expense                                                                  776                               -                            776                 888
                             Income tax expense                                          12,500                            (6)                          12,494              10,314
                             Depreciation & amortization expense                         7,263                             15                           7,278               7,219
                             Amortization of television syndicated programming contracts 628                               -                            628                 637
                             Non-cash stock based compensation expense                   2,101                             -                            2,101               1,655
Less: Cash television programming payments                                               (625)                             -                            (625)               (635)
Trailing twelve month consolidated EBITDA (1)                                            $                         39,138  $                       -    $           39,138  $          35,898
Total long-term debt, including current maturities                                                                                                      $           36,365  $          36,365
Divided by trailing twelve month consolidated EBITDA (1)                                                                                                39,138              35,898
Leverage ratio (1)                                                                                                                                      0.9                 1.0
(1)                          As defined in the Company’s credit facility.
Saga Communications, Inc.
Selected Financial Data Non-GAAP Disclosures
For the Three Months Ended
December 31, 2016 and 2015
(amounts in 000’s)
(Unaudited)
Reconciliation of Actual Information to Same Station Operating Income
                                                              Adjustment                                                                  Adjustment
                                     Actual                   For Acquisitions          Same Station             Actual                   For Acquisitions         Same Station
                                     Three Months             and Dispositions          Three Months             Three Months             and Dispositions         Three Months
                                     Ended                    Not Included in           Ended                    Ended                    Not Included in          Ended
                                     December 31,             Entire Comparable         December 31,             December 31,             Entire Comparable        December 31,
                                     2016                     Period                    2016                     2015                     Period                   2015
Consolidated
Net operating revenue                $              37,289    $              (1,155)    $              36,134    $              35,606    $                 (488)  $              35,118
Station operating expense            25,978                   (600)                     25,378                   25,868                   (492)                    25,376
Corporate general and administrative 2,915                    -                         2,915                    2,449                    -                        2,449
Other operating (income) expense     (8)                      (6)                       (14)                     94                       (70)                     24
Impairment of intangible assets      -                        -                         -                        874                      -                        874
Operating income                     $                8,404   $                 (549)   $                7,855   $                6,321   $                    74  $                6,395
Depreciation and amortization        $                1,918   $                   (52)  $                1,866   $                1,898   $                     -  $                1,898
                                                              Adjustment                                                                  Adjustment
                                     Actual                   For Acquisitions          Same Station             Actual                   For Acquisitions         Same Station
                                     Three Months             and Dispositions          Three Months             Three Months             and Dispositions         Three Months
                                     Ended                    Not Included in           Ended                    Ended                    Not Included in          Ended
                                     December 31,             Entire Comparable         December 31,             December 31,             Entire Comparable        December 31,
                                     2016                     Period                    2016                     2015                     Period                   2015
Radio Segment
Net operating revenue                $              30,747    $              (1,155)    $              29,592    $              29,963    $                 (488)  $              29,475
Station operating expense            22,042                   (600)                     21,442                   22,122                   (492)                    21,630
Other operating (income) expense     37                       (6)                       31                       85                       (70)                     15
Impairment of intangible assets      -                        -                         -                        874                      -                        874
Operating income                     $                8,668   $                 (549)   $                8,119   $                6,882   $                    74  $                6,956
Depreciation and amortization        $                1,440   $                   (52)  $                1,388   $                1,459   $                     -  $                1,459
                                                              Adjustment                                                                  Adjustment
                                     Actual                   For Acquisitions          Same Station             Actual                   For Acquisitions         Same Station
                                     Three Months             and Dispositions          Three Months             Three Months             and Dispositions         Three Months
                                     Ended                    Not Included in           Ended                    Ended                    Not Included in          Ended
                                     December 31,             Entire Comparable         December 31,             December 31,             Entire Comparable        December 31,
                                     2016                     Period                    2016                     2015                     Period                   2015
Television Segment
Net operating revenue                $                6,542   $                     -   $                6,542   $                5,643   $                     -  $                5,643
Station operating expense            3,936                    -                         3,936                    3,746                    -                        3,746
Other operating (income) expense     (45)                     -                         (45)                     (1)                      -                        (1)
Impairment of intangible assets      -                        -                         -                        -                        -                        -
Operating income                     $                2,651   $                     -   $                2,651   $                1,898   $                     -  $                1,898
Depreciation and amortization        $                   364  $                     -   $                   364  $                   383  $                     -  $                   383
Saga Communications, Inc.
Selected Financial Data Non-GAAP Disclosures
For the Twelve Months Ended
December 31, 2016 and 2015
(amounts in 000’s)
(Unaudited)
Reconciliation of Actual Information to Same Station Operating Income
                                                             Adjustment                                                               Adjustment
                                     Actual                  For Acquisitions         Same Station            Actual                  For Acquisitions         Same Station
                                     Twelve Months           and Dispositions         Twelve Months           Twelve Months           and Dispositions         Twelve Months
                                     Ended                   Not Included in          Ended                   Ended                   Not Included in          Ended
                                     December 31,            Entire Comparable        December 31,            December 31,            Entire Comparable        December 31,
                                     2016                    Period                   2016                    2015                    Period                   2015
Consolidated
Net operating revenue                $            142,591    $              (8,385)   $            134,206    $            132,856    $              (2,569)   $            130,287
Station operating expense            101,542                 (6,153)                  95,389                  97,268                  (2,542)                  94,726
Corporate general and administrative 10,980                  -                        10,980                  10,091                  -                        10,091
Other operating (income) expense     (1,393)                 (17)                     (1,410)                 541                     (476)                    65
Impairment of intangible assets      -                       -                        -                       874                     -                        874
Operating income                     $              31,462   $              (2,215)   $              29,247   $              24,082   $                  449   $              24,531
Depreciation and amortization        $                7,263  $                 (892)  $                6,371  $                6,824  $                 (291)  $                6,533
                                                             Adjustment                                                               Adjustment
                                     Actual                  For Acquisitions         Same Station            Actual                  For Acquisitions         Same Station
                                     Twelve Months           and Dispositions         Twelve Months           Twelve Months           and Dispositions         Twelve Months
                                     Ended                   Not Included in          Ended                   Ended                   Not Included in          Ended
                                     December 31,            Entire Comparable        December 31,            December 31,            Entire Comparable        December 31,
                                     2016                    Period                   2016                    2015                    Period                   2015
Radio Segment
Net operating revenue                $            118,955    $              (8,385)   $            110,570    $            111,792    $              (2,569)   $            109,223
Station operating expense            86,799                  (6,153)                  80,646                  83,188                  (2,542)                  80,646
Other operating (income) expense     (1,351)                 (17)                     (1,368)                 499                     (476)                    23
Impairment of intangible assets      -                       -                        -                       874                     -                        874
Operating income                     $              33,507   $              (2,215)   $              31,292   $              27,231   $                  449   $              27,680
Depreciation and amortization        $                5,555  $                 (892)  $                4,663  $                5,135  $                 (291)  $                4,844
                                                             Adjustment                                                               Adjustment
                                     Actual                  For Acquisitions         Same Station            Actual                  For Acquisitions         Same Station
                                     Twelve Months           and Dispositions         Twelve Months           Twelve Months           and Dispositions         Twelve Months
                                     Ended                   Not Included in          Ended                   Ended                   Not Included in          Ended
                                     December 31,            Entire Comparable        December 31,            December 31,            Entire Comparable        December 31,
                                     2016                    Period                   2016                    2015                    Period                   2015
Television Segment
Net operating revenue                $              23,636   $                     -  $              23,636   $              21,064   $                     -  $              21,064
Station operating expense            14,743                  -                        14,743                  14,080                  -                        14,080
Other operating (income) expense     (42)                    -                        (42)                    32                      -                        32
Impairment of intangible assets      -                       -                        -                       -                       -                        -
Operating income                     $                8,935  $                     -  $                8,935  $                6,952  $                     -  $                6,952
Depreciation and amortization        $                1,387  $                     -  $                1,387  $                1,399  $                     -  $                1,399

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/saga-communications-inc-reports-4th-quarter-and-year-end-2016-results-300419136.html

SOURCE Saga Communications, Inc.

https://rt.prnewswire.com/rt.gif?NewsItemId=DE29375&Transmission_Id=201703070900PR_NEWS_USPR_____DE29375&DateId=20170307



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