STOCK TITAN

Saga Communications, Inc. Reports 2nd Quarter 2021 Results Net Revenue Increases 66.3% for the Quarter

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Negative)
Tags
Rhea-AI Summary

Saga Communications reported a net revenue of $28.0 million for Q2 2021, up from $16.9 million YoY. Station operating income hit $8.4 million, a turnaround from a $181 thousand loss last year. Free cash flow improved to $4.2 million from a negative $1.8 million. Net income for the quarter was $3.3 million, with diluted EPS at $0.54. For H1 2021, net revenue was $50.3 million, a rise from $42.9 million. The company reinstated a dividend of $0.16 per share, totaling $960 thousand. Cash on hand was $59.4 million with minimal bank debt.

Positive
  • Net revenue increased to $28.0 million in Q2 2021 from $16.9 million YoY.
  • Station operating income rose to $8.4 million compared to a loss of $181 thousand last year.
  • Free cash flow improved to $4.2 million from a negative $1.8 million.
  • Net income for the quarter was $3.3 million with diluted EPS of $0.54.
  • Dividends reinstated at $0.16 per share, totaling $960 thousand.
Negative
  • Station operating expenses increased by $2.4 million to $21.0 million in Q2.

GROSSE POINTE FARMS, Mich., Aug. 5, 2021 /PRNewswire/ -- Saga Communications, Inc. (Nasdaq - SGA) reported today that net revenue was $28.0 million for the quarter ended June 30, 2021 compared to $16.9 million for the same period last year.  Station operating expense increased $2.4 million to $21.0 million for the quarter compared to the same period last year.  Station operating income was $8.4 million for the quarter compared to a loss of $181 thousand for the second quarter last year.  Free cash flow was $4.2 million for the quarter compared to a negative $1.8 million for the same period last year.  Operating income was $4.6 million for the quarter compared to a loss of $8.7 million for the same period last year.  Net income was $3.3 million for the quarter.  Diluted earnings per share were $0.54 in the second quarter of 2021.      

Net revenue was $50.3 million for the six-months ended June 30, 2021 compared to $42.9 million for the same period last year.  Station operating expense decreased $911 thousand to $39.9 million for the six-month period compared to the same period last year.  Station operating income was $13.1 million for the period compared to $5.3 million for the same period last year.  Free cash flow was $6.0 million for the six-month period.  Operating income was $5.5 million for the period ended June 30, 2021 compared to a loss of $6.5 million for the same period last year.  Net income was $4.0 million for the period.  Diluted earnings per share were $0.67 for the six-month period.     

The Company reinstated its quarterly dividend with the declaration of a $0.16 per share dividend which was paid on July 16, 2021.  The aggregate amount of the quarterly dividend was approximately $960 thousand.  The Company has now paid over $72 million in dividends to shareholders since the first special dividend was paid in 2012. 

The Company's balance sheet reflects $59.4 million in cash on hand as of June 30, 2021 and $59.6 million as of August 2, 2021.  The Company's total bank debt remained at $10 million as of the end of the second quarter 2021. 

Capital expenditures in the second quarter of 2021 were $921 thousand compared to $358 thousand for the quarter ended June 30, 2020 and $1.5 million for the six-month period ended June 30, 2021 versus $1.4 million for the same period last year.  The Company expects to spend approximately $4.0 – 4.5 million for capital expenditures during 2021.

Saga's 2021 2nd Quarter conference call will be on Thursday August 5, 2021 at 11:00 a.m. EDT.  The dial-in number for the call is (973) 528-0008.  Enter conference code 984904.  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. EDT on August 5, 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 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 the non-GAAP financial measures to the most directly comparable GAAP measure are attached in the Selected Consolidated Financial Data and Selected Supplemental Financial Data tables.

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," "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 national and local economic changes and changes in the radio broadcast industry in general, and the ongoing economic impact of the COVID-19 pandemic 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.

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 Six Months Ended

June 30, 2021 and 2020

(amounts in 000's except per share data)

(Unaudited)
















Three Months Ended


Six Months Ended



June 30, 


June 30, 



2021


2020


2021


2020

Operating Results













Net operating revenue


$

28,046


$

16,866


$

50,347


$

42,917

Station operating expenses



21,017



18,652



39,940



40,851

Corporate general and administrative



2,494



3,070



4,932



6,085

Other operating expense (income), net



(80)



46



(23)



(1,284)

Impairment of broadcast licenses





3,757





3,757

Operating income (loss)



4,615



(8,659)



5,498



(6,492)

Interest expense



72



82



145



190

Interest income



(4)



(25)



(10)



(133)

Other income, net



(31)





(303)



(213)

Income (loss) before income tax expense (benefit)



4,578



(8,716)



5,666



(6,336)

Income tax expense (benefit)



1,325



(3,805)



1,655



(3,105)

Net income (loss)


$

3,253


$

(4,911)


$

4,011


$

(3,231)














Earnings (loss) per share:













Basic


$

0.54


$

(0.82)


$

0.67


$

(0.54)

Diluted


$

0.54


$

(0.82)


$

0.67


$

(0.54)














Weighted average common shares



5,917



5,868



5,915



5,867

Weighted average common and common equivalent shares



5,917



5,868



5,915



5,867








































Free Cash Flow













Net income (loss)


$

3,253


$

(4,911)


$

4,011


$

(3,231)

Plus: Depreciation and amortization:













Radio Stations



1,353



1,605



2,702



3,213

Corporate



70



74



139



149

Deferred tax provision



170



(2,615)



200



(2,500)

Non-cash compensation



357



612



700



1,181

Other operating (income) expense, net



(80)



46



(23)



(1,284)

Other income, net



(31)





(303)



(213)

Impairment of intangible assets





3,757





3,757

Less: Capital expenditures



(921)



(358)



(1,455)



(1,379)

Free cash flow


$

4,171


$

(1,790)


$

5,971


$

(307)






















June 30, 









2021


2020

Balance Sheet Data













Working capital








$

62,405


$

48,970

Net fixed assets








$

53,591


$

56,860

Net intangible assets and other assets








$

120,114


$

122,513

Total assets








$

252,811


$

243,053

Long-term debt








$

10,000


$

10,000

Stockholders' equity








$

194,518


$

188,593

 

Saga Communications, Inc.

Selected Supplemental Financial Data

June 30, 2021

(amounts in 000's except ratios)

(Unaudited)




















Less:


Plus:


Trailing




12 Months Ended


Six Months Ended


Six Months Ended


12 Months Ended




December 31, 


June 30, 


June 30, 


June 30, 




2020


2020


2021


2021


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














Net income (loss)


$

(1,913)


$

(3,231)


$

4,011


$

5,329


Exclusions:














Gain (loss) on sale of assets



1,247



1,284



23



(14)


Gain on insurance proceeds



233



213



272



292


Other gains (losses)







31



31


Interest income



148



133



10



25


Impairment of intangible assets



(5,149)



(3,757)





(1,392)


Other



133



34



101



200


Total exclusions



(3,388)



(2,093)



437



(858)


Consolidated adjusted net income (1)



1,475



(1,138)



3,574



6,187


Plus:














Interest expense



340



190



145



295


Income tax expense (benefit)



705



(3,105)



1,655



5,465


Depreciation & amortization expense



6,524



3,362



2,841



6,003


Non-cash compensation



2,221



1,181



700



1,740


Trailing twelve month consolidated EBITDA (1)


$

11,265


$

490


$

8,915


$

19,690
















Total long-term debt, including current maturities











$

10,000


Divided by trailing twelve month consolidated EBITDA (1)












19,690


Leverage ratio












0.51








(1)

As defined in the Company's credit facility.

 

Saga Communications, Inc.

Selected Supplemental Financial Data

For the Three and Six Months Ended

June 30, 2021 and 2020

(amounts in 000's except per share data)

(Unaudited)
















Three Months Ended


Six Months Ended



June 30, 


June 30, 



2021


2020


2021


2020

Operating income (loss) to station operating income (loss) reconciliation:













Operating income (loss)


$

4,615


$

(8,659)


$

5,498


$

(6,492)

Plus:













Corporate general and administrative



2,494



3,070



4,932



6,085

Other operating expense (income), net



(80)



46



(23)



(1,284)

Impairment of broadcast licenses





3,757





3,757

Station depreciation and amortization



1,353



1,605



2,702



3,213

Station operating income (loss)


$

8,382


$

(181)


$

13,109


$

5,279

 

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

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/saga-communications-inc-reports-2nd-quarter-2021-results-net-revenue-increases-66-3-for-the-quarter-301348746.html

SOURCE Saga Communications, Inc.

FAQ

What were the Q2 2021 earnings for Saga Communications (SGA)?

Saga Communications reported Q2 2021 earnings of $28.0 million in net revenue, with a net income of $3.3 million.

How much cash did Saga Communications (SGA) have on hand as of June 30, 2021?

Saga Communications had $59.4 million in cash on hand as of June 30, 2021.

What was the diluted earnings per share for Saga Communications (SGA) in Q2 2021?

The diluted earnings per share for Saga Communications in Q2 2021 were $0.54.

Did Saga Communications (SGA) reinstate its dividend in 2021?

Yes, Saga Communications reinstated its dividend at $0.16 per share, totaling approximately $960 thousand.

What are the key financial metrics for Saga Communications (SGA) for the first half of 2021?

For H1 2021, Saga Communications reported net revenue of $50.3 million and a net income of $4.0 million.

Saga Communications, Inc.

NASDAQ:SGA

SGA Rankings

SGA Latest News

SGA Stock Data

74.51M
4.29M
24.22%
60.85%
0.22%
Broadcasting
Radio Broadcasting Stations
Link
United States of America
GROSSE POINTE FARMS