Saga Communications, Inc. Declares a Quarterly Cash Dividend of $0.25 per Share

Rhea-AI Summary

Saga Communications, Inc. (SGA) has declared a quarterly cash dividend of $0.25 per share, amounting to approximately $1.6 million, to be paid on March 8, 2024. The company has paid around $127 million in dividends to shareholders since 2012 and intends to continue with regular and variable dividends. The variable dividend policy aims to maintain a strong balance sheet, increase cash returns to shareholders, and grow the company through strategic acquisitions. Saga is a media company with a focus on acquiring, developing, and operating broadcast properties, including digital, e-commerce, and non-traditional revenue initiatives.

Insights

Financial Analyst

The declaration of a quarterly cash dividend by Saga Communications represents a tangible return on investment for shareholders. The dividend yield, calculated as the annual dividend per share divided by the stock price, is a key metric for income-focused investors. The announcement of a $0.25 per share dividend, resulting in an aggregate payment of $1.6 million, is indicative of the company's current liquidity and confidence in its ability to generate cash flow. Investors should note that the continuation of such dividends can signal financial stability and a commitment to returning value to shareholders.

However, it is important to consider the sustainability of these dividends. A company's payout ratio, which is the proportion of earnings paid out as dividends, should be examined to assess whether the company can maintain or grow its dividends without compromising financial health or growth opportunities. Additionally, the company's history of paying $127 million in dividends since 2012 suggests a track record of shareholder remuneration, which could be attractive to long-term investors.

Market Research Analyst

The media industry, within which Saga Communications operates, is undergoing significant transformation due to digitalization and changing consumer behaviors. Saga's emphasis on not only traditional broadcast properties but also digital, e-commerce and non-traditional revenue initiatives positions the company to potentially capitalize on these industry shifts. The ability to grow through strategic acquisitions could further strengthen Saga's market position and diversify its revenue streams.

Investors should monitor the company's performance in these areas, as successful execution of these strategies could lead to increased market share and revenue growth. Conversely, failure to adapt to industry changes or to integrate acquisitions effectively could negatively impact the company's financials and, subsequently, its ability to maintain its dividend policy.

Legal Expert

It is crucial for investors to understand that the declaration and payment of dividends, as well as the implementation of stock buyback programs, are subject to the discretion of the company's Board of Directors. These decisions are contingent upon a variety of factors including financial results, cash requirements and future expectations. The Board's ability to adopt a variable dividend policy allows for flexibility in capital allocation, which can be advantageous in managing the company's growth and shareholder value.

Investors should be aware that while the company has expressed intentions to declare regular dividends, there is no legal obligation to do so and future dividends may vary. This uncertainty should be factored into investment decisions, particularly for those who prioritize dividend consistency.

GROSSE POINTE FARMS, Mich., Feb. 07, 2024 (GLOBE NEWSWIRE) -- Saga Communications, Inc. (Nasdaq - SGA) (the “Company”, “Saga” or “our”) today announced that its Board of Directors (“Board”) declared a quarterly cash dividend of $0.25 per share. The dividend will be paid on March 8, 2024, to shareholders of record on February 20, 2024. The aggregate amount of the payment to be made in connection with the quarterly dividend will be approximately $1.6 million. The quarterly dividend will be funded by cash on the Company’s balance sheet. Including this dividend, the Company will have paid approximately $127 million in dividends to shareholders since the first special dividend was paid in 2012.

The Company currently intends to declare regular quarterly cash dividends as well as variable dividends in accordance with the terms of its variable dividend policy. As previously reported, our Board adopted a variable dividend policy for the allocation of cash flows aligned with the goals of maintaining a strong balance sheet, increasing cash returns to shareholders, and continuing to grow the Company through strategic acquisitions. The Company may also declare special dividends and stock buybacks in future periods. The declaration and payment of any future dividend, whether fixed, special, or based on the variable policy, or the implementation of any stock buyback program will remain at the full discretion of the Board and will depend on the Company’s financial results, cash requirements, future expectations, and other pertinent factors.

Saga is a media company whose business is devoted to acquiring, developing and operating broadcast properties including opportunities complimentary to our core radio business including digital, e-commerce and non-traditional revenue initiatives. Saga owns or operates broadcast properties in 27 markets, including 79 FM and 33 AM radio stations and 80 metro signals. For additional information, contact us at (313) 886-7070 or visit our website at www.sagacom.com.

This press release contains certain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 that are based upon current expectations and involve certain risks and uncertainties. Words such as “will,” “may,” “believes,” “intends,” “expects,” “anticipates,” “guidance,” and similar expressions are intended to identify forward-looking statements. The material risks facing our business are described in the reports Saga periodically files with the U.S. Securities and Exchange Commission, including, in particular, Item 1A of our Annual Report on Form 10-K. Readers should note that forward-looking statements may be impacted by several factors, including global, national, and local economic changes and changes in the radio broadcast industry in general as well as Saga’s actual performance. Actual results may vary materially from those described herein and Saga undertakes no obligation to update any information contained herein that constitutes a forward-looking statement.

Contact:
Samuel D. Bush
(313) 886-7070

FAQ

What is the quarterly cash dividend declared by Saga Communications, Inc. (SGA)?

Saga Communications, Inc. (SGA) declared a quarterly cash dividend of $0.25 per share, totaling approximately $1.6 million, to be paid on March 8, 2024.

How much has Saga Communications, Inc. (SGA) paid in dividends to shareholders since 2012?

Saga Communications, Inc. (SGA) has paid approximately $127 million in dividends to shareholders since the first special dividend was paid in 2012.

What is the focus of Saga Communications, Inc. (SGA) as a media company?

Saga Communications, Inc. (SGA) is focused on acquiring, developing, and operating broadcast properties, including digital, e-commerce, and non-traditional revenue initiatives.