Saga Communications Q1 Net Income Increases 22.6%

RADIO ONLINE | Wednesday, May 6, 2020

Saga Communications

Saga Communications reported first quarter net revenue of $26.1 million down from $27.8 million in 2019. Gross political revenue increased $963,000 to $1 million, while station operating expense fell $964,000 to $22.2 million and operating income rose $202,000 to $2.2 million. The company reported a net income of $1.7 million (28 cents per diluted share), up from $1.4 million (23 cents) during the same period in 2019. Free cash flow was $1.5 million as compared to $2.6 million.

The company had $46.3 million in cash on hand as of March 31 and $47 million as of May 4. Saga's total bank debt was $10 million as of the end of the quarter. Including the 32 cents per share dividend which was paid on April 10, the company has paid over $71.3 million in dividends since December 3, 2012.

"As a result of the current challenging economic conditions, our reported results for the three months ended March 31, 2020 are not reflective of current market conditions," the company said in a release. "The company's advertising revenue has declined significantly as a result of the pandemic and these unfavorable trends have continued into May and June. While we cannot reasonably estimate the length or severity of this pandemic, an extended economic slowdown in the U.S. could materially impact our consolidated financial position, consolidated results of operations, and consolidated cash flows in fiscal 2020 or beyond."