PR Newswire | Nov 4, 2021 09:01AM EDT

11/04 08:00 CDT

Saga Communications, Inc. Reports 3rd Quarter 2021 ResultsNet Revenue Increases 19.5% for the Quarter GROSSE POINTE FARMS, Mich., Nov. 4, 2021

GROSSE POINTE FARMS, Mich., Nov. 4, 2021 /PRNewswire/ -- Saga Communications, Inc. (Nasdaq - SGA) reported today that net revenue was $28.8 million for the quarter ended September 30, 2021 compared to $24.1 million for the same period last year. Station operating expense increased $2.1 million to $21.7 million for the quarter compared to the same period last year. Station operating income was $8.5 million for the quarter compared to $6.1 million for the third quarter last year. Free cash flow was $4.0 million for the quarter compared to $2.8 million for the same period last year. Operating income was $4.6 million for the quarter compared to $247 thousand for the same period last year. Net income was $3.5 million for the quarter. Diluted earnings per share were $0.58 in the third quarter of 2021.

Net revenue was $79.2 million for the nine-months ended September 30, 2021 compared to $67.1 million for the same period last year. Station operating expense increased $1.2 million to $61.6 million for the nine-month period compared to the same period last year. Station operating income was $21.7 million for the period compared to $11.4 million for the same period last year. Free cash flow was $9.9 million for the nine-month period compared to $2.5 million for the same period last year. Operating income was $10.1 million for the period ended September 30, 2021 compared to a loss of $6.2 million for the same period last year. Net income was $7.5 million for the period. Diluted earnings per share were $1.25 for the nine-month period.

The Company paid a quarterly dividend of $0.16 per share on October 22, 2021. The aggregate amount of the quarterly dividend was approximately $960 thousand. The Company has now paid over $73 million in dividends to shareholders since the first special dividend was paid in 2012.

The Company's balance sheet reflects $62.2 million in cash on hand as of September 30, 2021 and $53.5 million as of November 1, 2021. The Company paid off the remaining balance of $10 million in bank debt on October 27, 2021.

Capital expenditures in the third quarter of 2021 were $1.2 million compared to $501 thousand for the quarter ended September 30, 2020 and $2.7 million for the nine-month period ended September 30, 2021 versus $1.9 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 3rd Quarter conference call will be on Thursday November 4, 2021 at 1:00 p.m. EDT. The dial-in number for the call is (973) 528-0008. Enter conference code 918406. 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 11:00 a.m. EDT on November 4, 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, 34 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 Nine Months Ended

September 30, 2021 and 2020

(amounts in 000's except per share data)

(Unaudited)





Three Months Ended Nine Months Ended

September 30, September 30,

2021 2020 2021 2020

Operating Results

Net operating revenue $28,845 $24,143$79,192 $67,060

Station operating expenses 21,690 19,616 61,630 60,467

Corporate general and 2,538 2,838 7,470 8,923 administrative

Other operating expense (income), (2) 50 (25) (1,234)net

Impairment of broadcast licenses - 1,392 - 5,149

Operating income (loss) 4,619 247 10,117 (6,245)

Interest expense 73 75 218 265

Interest income (4) (8) (14) (141)

Other income, net (279) - (582) (213)

Income (loss) before income tax 4,829 180 10,495 (6,156)expense (benefit)

Income tax expense (benefit) 1,375 1,130 3,030 (1,975)

Net income (loss) $3,454 $(950) $7,465 $(4,181)



Earnings (loss) per share:

Basic $0.58 $(0.16)$1.25 $(0.70)

Diluted $0.58 $(0.16)$1.25 $(0.70)



Weighted average common shares 5,917 5,869 5,916 5,867

Weighted average common and common 5,917 5,869 5,916 5,867 equivalent shares







Free Cash Flow

Net income (loss) $3,454 $(950) $7,465 $(4,181)

Plus: Depreciation and amortization:

Radio Stations 1,391 1,556 4,093 4,769

Corporate 69 75 208 224

Deferred tax provision (benefit) 210 575 410 (1,925)

Non-cash compensation 348 618 1,048 1,799

Other operating (income) expense, (2) 50 (25) (1,234)net

Other income, net (279) - (582) (213)

Impairment of intangible assets - 1,392 - 5,149

Less: Capital expenditures (1,232) (501) (2,687) (1,880)

Free cash flow $3,959 $2,815 $9,930 $2,508



September 30,

2021 2020

Balance Sheet Data

Working capital $55,707 $51,790

Net fixed assets $53,451 $55,877

Net intangible assets and other $119,593$120,835assets

Total assets $255,114$243,164

Long-term debt, including $10,000 and $0 of current debt, $10,000 $10,000 respectively

Stockholders' equity $197,364$188,239

Saga Communications, Inc.

Selected Supplemental Financial Data

September 30, 2021

(amounts in 000's except ratios)

(Unaudited)





Less: Plus: Trailing

12 Months EndedNine Months EndedNine Months Ended12 Months Ended

December 31, September 30, September 30, September 30,

2020 2020 2021 2021

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

Net income $(1,913) $ (4,181) $ 7,465 $ 9,733 (loss)

Exclusions:

Gain on sale 1,247 1,234 25 38 of assets

Gain on insurance 233 213 567 587 proceeds

Other gains - - 15 15

Interest 148 141 14 21 income

Impairment of (5,149) (5,149) - - intangible assets

Other 133 119 87 101

Total (3,388) (3,442) 708 762 exclusions

Consolidated adjusted net 1,475 (739) 6,757 8,971 income (loss) ^(1)

Plus:

Interest 340 265 218 293 expense

Income tax expense 705 (1,975) 3,030 5,710 (benefit)

Depreciation & 6,524 4,993 4,301 5,832 amortization expense

Non-cash 2,221 1,799 1,048 1,470 compensation

Trailing twelve month$11,265 $ 4,343 $ 15,354 $ 22,276 consolidated EBITDA ^(1)



Total long-term debt, $ 10,000 including current maturities

Divided by trailing twelve month 22,276 consolidated EBITDA ^(1)

Leverage 0.45 ratio

(1) As defined in the Company's credit facility.

Saga Communications, Inc.

Selected Supplemental Financial Data

For the Three and Nine Months Ended

September 30, 2021 and 2020

(amounts in 000's except per share data)

(Unaudited)





Three Months Ended Nine Months Ended

September 30, September 30,

2021 2020 2021 2020

Operating income (loss) to station operating income reconciliation:

Operating income (loss) $ 4,619$ 247 $10,117$(6,245)

Plus:

Corporate general and administrative 2,538 2,838 7,470 8,923

Other operating expense (income), net (2) 50 (25) (1,234)

Impairment of broadcast licenses - 1,392 - 5,149

Station depreciation and amortization 1,391 1,556 4,093 4,769

Station operating income $ 8,546$ 6,083 $21,655$11,362

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SOURCE Saga Communications, Inc.