Saga Communications, Inc. Reports 1st Quarter Results

Saga Communications, Inc.

Selected Consolidated Financial Data

For The Three Months Ended

March 31, 2018 and 2017

(amounts in 000's except per share data)

(Unaudited)

 Three Months Ended  

 March 31,  

2018

2017

Operating Results

Net operating revenue

$         28,009

$        26,155

Station operating expense

23,397

21,340

Corporate general and administrative

2,544

2,863

Other operating income, net

(251)

(21)

Operating income from continuing operations

2,319

1,973

Interest expense

219

208

Other income

(89)

-

Income from continuing operations, before tax

2,189

1,765

Income tax expense 

660

718

Income from continuing operations, net of tax

1,529

1,047

Income from discontinued operations, net of tax

-

891

Net income

$           1,529

$          1,938

Basic Earnings per share:

From continuing operations

$             0.26

$           0.18

From discontinued operations

-

0.15

Basic earnings per share

$             0.26

$           0.33

Diluted Earnings per share:

From continuing operations

$             0.26

$           0.18

From discontinued operations

-

0.15

Diluted earnings per share

$             0.26

$           0.33

Weighted average common shares

5,842

5,790

Weighted average common and common 

equivalent shares

5,842

5,802

Free Cash Flow

Net income 

$           1,529

$          1,938

Plus: Depreciation and amortization:

        Station

1,580

1,358

        Corporate

66

71

        Discontinued operations

-

316

         Deferred tax provision

310

425

         Non-cash compensation

551

558

         Other operating expense (income) from continuing operations

(251)

(21)

         Other operating expense from discontinued operations

-

31

Less: Capital expenditures from continuing operations

(1,498)

(1,342)

    Capital expenditures from discontinued operations

-

(97)

Free cash flow

$           2,287

$          3,237

Balance Sheet Data

Working capital

56,206

56,189

Net fixed assets

56,320

49,180

Net intangible assets and other assets

116,108

100,157

Total assets

241,078

221,566

Long-term debt 

25,000

36,365

Stockholders' equity

179,921

135,983

Saga Communications, Inc.

Selected Supplemental Financial Data

For The Three Months Ended

March 31, 2018 and 2017

(amounts in 000's except per share data)

(Unaudited)

 Three Months Ended  

 March 31,  

2018

Operating Results of Discontinued Operations

Net operating revenue

$          -

$        5,255

Station operating expense 

-

3,712

Other operating expense, net

-

31

Operating income from discontinued operations

-

1,512

Interest expense 

-

9

Income from discontinued operations before income taxes

-

1,503

Income tax expense 

-

612

Income from discontinued operations, net of tax

$           -

$          891

Free Cash Flow from Discontinued Operations

Income from discontinued operations, net of tax

$           -

$          891

Plus: Depreciation and amortization:

-

316

         Other operating income from discontinued operations

-

31

Less: Capital expenditures from discontinued operations

-

(97)

Free cash flow from discontinued operations

$           -

$        1,141

(1)   Results of operations for the Television stations are reflected through March 31, 2017.  The 
        effective date of the sale was September 1, 2017.  

Saga Communications, Inc.

Selected Supplemental Financial Data

For the Three Months Ended

March 31, 2018 and 2017

(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

March 31,

March 31,

March 31,

2018

2017

2018

2017

2018

2017

Consolidated

Net operating revenue

$      28,009

$    26,155

$      26,189

$      26,110

$      28,009

$      28,132

Station operating expense

23,397

21,340

21,395

21,287

23,397

23,070

Corporate general and administrative

2,544

2,863

2,544

2,863

2,544

2,863

Other operating income, net 

(251)

(21)

(251)

(21)

(251)

(21)

Operating income from continuing operations

2,319

1,973

2,501

1,981

2,319

2,220

Interest expense

219

208

219

208

Other income

(89)

-

(89)

-

Income from continuing operations, before tax

2,189

1,765

2,189

2,012

Income tax expense 

660

718

660

819

Income from continuing operations, net of tax

1,529

1,047

1,529

1,193

Income from discontinued operations, net of tax

-

891

-

891

Net income 

$        1,529

$      1,938

$        1,529

$        2,084

Basic Earnings per share:

From continuing operations

$          0.26

$        0.18

$          0.26

$          0.20

From discontinued operations

-

0.15

-

0.15

Basic earnings per share

$          0.26

$        0.33

$          0.26

$          0.35

Diluted Earnings per share:

From continuing operations

$          0.26

$        0.18

$          0.26

$          0.20

From discontinued operations

-

0.15

-

0.15

Diluted earnings per share

$          0.26

$        0.33

$          0.26

$          0.35

Actual

Same Station ⁽¹⁾

Pro Forma ⁽²⁾

Three Months Ended

Three Months Ended

Three Months Ended

March 31,

March 31,

March 31,

2018

2017

2018

2017

2018

2017

Depreciation and amortization

by segment

Radio Stations

$        1,580

$      1,358

$        1,320

$        1,358

$        1,580

$        1,603

Discontinued Operations

-

316

-

-

-

316

Corporate and Other

66

71

66

71

66

71

$        1,646

$      1,745

$        1,386

$        1,429

$        1,646

$        1,990

(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 2017 and 2018 occurred as of January 1, 2017.

Saga Communications, Inc.

Selected Supplemental Financial Data

March 31, 2018

(amounts in 000's except ratios)

(Unaudited)

Less:

Plus:

Trailing

 12 Months Ended 

 3 Months Ended 

 3 Months Ended 

 Plus:  

Less:

12 Months Ended

December 31, 

March 31, 

March 31, 

Proforma

Discontinued 

March 31, 

2017

2017

2018

Acquisitions⁽²⁾ 

Operations ⁽²⁾

2018

Trailing 12 Month Consolidated Earnings Before Interest,

  Taxes, Depreciation and Amortization ("EBITDA") (1)

Net income

$                  54,717

$                  1,938

$                  1,529

$                     266

$                 31,581

$                  22,993

Exclusions:

Gain (loss) on sale of assets from continuing operations

(55)

21

-

-

175

Gain (loss) on sale of assets from discontinued operations

(31)

(31)

-

-

-

-

Gain (loss) on sale of television stations

50,842

-

-

-

50,842

-

Impairment of Intangibles

(1,449)

-

-

-

-

(1,449)

Other

289

59

66

-

36

260

Total exclusions

49,596

49

317

-

50,878

Consolidated adjusted net income (1)

5,121

1,889

1,212

266

(19,297)

24,007

Plus:  Interest expense

925

217

219

-

14

913

Income tax expense

16,880

1,330

660

185

22,188

(5,793)

Depreciation & amortization expense

6,696

1,745

1,646

409

129

6,877

Amortization of television syndicated programming contracts

418

158

-

-

260

-

Non-cash stock based compensation expense

2,279

558

551

-

-

2,272

Less: Cash television programming payments

(418)

(158)

-

-

(260)

-

Trailing twelve month consolidated EBITDA (1)

$                  31,901

$                  5,739

$                  4,288

$                     860

$                  3,034

$                  28,276

Total long-term debt, including current maturities

$                  25,000

Divided by trailing twelve month consolidated EBITDA (1)

28,276

Leverage ratio

0.88

(1)

As defined in the Company's credit facility.

(2)

Trailing 12 Month Adjustment

Saga Communications, Inc.

Selected Financial Data Non-GAAP Disclosures

For the Three Months Ended

March 31, 2018 and 2017

(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

March 31, 

Entire Comparable

March 31, 

March 31, 

Entire Comparable

March 31, 

2018

Period

2018

2017

Period

2017

Consolidated

Net operating revenue

$              28,009

$              (1,820)

$              26,189

$              26,155

$                   (45)

$              26,110

Station operating expense

23,397

(2,002)

21,395

21,340

(53)

21,287

Corporate general and administrative

2,544

-

2,544

2,863

-

2,863

Other operating income, net 

(251)

-

(251)

(21)

-

(21)

Operating income from continuing operations

$                2,319

$                  182

$                2,501

$                1,973

$                      8

$                1,981

Depreciation and amortization

$                1,646

$                 (260)

$                1,386

$                1,745

$                 (316)

$                1,429