Saga Reports Downturn in Q3 Revenue and Profits

RADIO ONLINE | Thursday, November 7, 2024

Saga Communications

Saga Communications disclosed a decrease in its financial performance for the third quarter ended September 30. The company reported a 3.5% reduction in net revenue, down to $28.1 million from $29.1 million in the same period last year. This decline was accompanied by a 21.2% drop in station operating income to $6 million.

Operating income similarly fell sharply from $3.5 million in the third quarter of the previous year to $1.6 million in the current quarter. Net income for the quarter also saw a decline, halving from $2.7 million to $1.3 million. Earnings per share were reported at $0.20, down from the prior year.

For the nine-month period, Saga's performance also trended downward with net revenue decreasing by 2.5% to $81.5 million compared to $83.6 million for the same period last year. Operating income significantly decreased to $1.4 million from $8.7 million, and net income was reduced to $2.2 million from $7 million. The earnings per share for this period were $0.35.

Despite the overall downturn, Saga's balance sheet remains robust with $28.0 million in cash and short-term investments as of November 4, 2024. The company has drawn $5.0 million against its $50.0 million revolving credit facility. Saga expects to spend between $4.0 million and $4.5 million in capital expenditures for the full year.

Saga paid a quarterly dividend of $0.25 per share on October 18, 2024, totaling approximately $1.6 million. Since 2012, the company has returned over $133 million to its shareholders through dividends. Saga's Board of Directors continues to evaluate opportunities for returning value, including potential special cash dividends, variable dividends, and stock buybacks.