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Saga Q3 Net Revenue Fell 22%, Earnings Swing to Loss
RADIO ONLINE | Wednesday, November 4, 2020 |
Saga Communications reported third quarter net revenue fell 22.7% to $24.1 million from $31.2 million in 2019, mainly due to the impact of the COVID-19 pandemic. Station operating income was $6.1 million, while station operating expense decreased 23.6% to $19.6 million from $23.6 million. Operating income was $247,000, down from $4.8 million. The company posted as net loss of $950,000 (-16 cents per diluted per) as compare to $3.3 million (56 cents) in the year-ago period.
Results for the quarter include a non-cash impairment charge of $1.4 million. Without the non-cash impairment charge, the company would have had a net income of $38,000 or 1 cent per share. Free cash flow was $2.8 million for the quarter.
The company's balance sheet reflects $48.3 million in cash on hand as of September 30, 2020 and $49.8 million as of November 2. Saga's total bank debt remained at $10 million as of the end of the quarter. Including the significant impact on its revenue, the company's trailing twelve-month leverage ratio is an extremely conservative 0.82, per its bank covenant calculation, and below zero when cash on hand is included in the calculation.
Capital expenditures in the third quarter were $501,000 compared to $1.5 million for the same period last year. The company expects to spend approximately $2-2.5 million for capital expenditures during 2020 which is down from its normal annual capital expenditures of $5-6 million.
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