Saga Communications Q3 Net Revs Up 1.3% to $30.3M

RADIO ONLINE | Wednesday, November 8, 2017

Saga Communications reported third quarter net revenue increased 1.3% to $30.3 million from $29.8 million in 2016. Station operating expense was flat at $21.8 million, while operating income fell to $5.5 million from $6.8 million -- primarily due to a gain of $1.4 million recognized from the sale of one of the company's towers in Norfolk during the third quarter last year. Gross political revenue from radio was $0.3 million compared to $0.5 million for the same period last year.

On a same station basis net revenue declined 1.1% to $29.6 million. Station operating expense was down 2.8% at $21.2 million and operating income was $5.4 million. The company reported a net income of $33.4 million ($5.66 per diluted share) as compared to $5.4 million ($0.92) in the year-ago period. During the quarter the company realized a gain of $29.9 million net of tax on the sale of its television assets.

On September 1, 2017 the company closed on the sale of its television stations for approximately $66.6 million and on the purchase of radio stations in Charleston and Hilton Head, SC, for $23 million. At the end of the quarter the Saga had approximately $81million of cash on its balance sheet. In addition to taxes the company plans to utilize the cash for future acquisitions, regular quarterly cash dividends as declared by the board of directors, and to consider its use for special cash dividends and stock buybacks.