Saga Communications Reports Decline in Q2 2024 Earnings

RADIO ONLINE | Thursday, August 8, 2024

Saga Communications

Saga Communications reported a downturn in its performance for the second quarter of 2024, with net revenue slipping 1.5% to $28.7 million, down from $29.2 million in the same quarter last year. The company's financials showed a challenging quarter, with station operating expenses climbing 5.1% to $23.5 million. This increase in costs contributed to a reduction in operating income, which halved from $4.3 million in Q2 2023 to $2.1 million in the current reporting period. Similarly, Saga's station operating income fell from $8 million last year to $6.4 million.

Net income also saw a decrease, coming in at $2.5 million compared to $3.4 million in the second quarter of the previous year, with diluted earnings per share at $0.40, down from last year's performance.

Over the six-month period ending June 30, 2024, Saga's struggles appeared consistent. Net revenue for the half-year was down 2.0% to $53.4 million, and the company reported an operating loss of $0.3 million, a stark contrast to the $5.2 million operating income from the same period last year. Six-month net income plummeted to $0.9 million from $4.3 million, reflecting broader challenges in operational efficiency and market conditions.

The period also marked an expansion for Saga, which closed on the acquisition of five radio stations and one translator in Lafayette, IN, as of May 31, 2024. This move is part of the company's strategy to broaden its market presence and build on its portfolio. Despite these additions, Saga recorded a $0.25 per share quarterly dividend on June 28, showcasing its commitment to returning value to shareholders, with total dividends exceeding $132 million since 2012.

As of the end of the quarter, Saga's balance sheet showed $24.1 million in cash and short-term investments, and it had drawn $5.0 million from its $50.0 million revolving credit facility, mainly to support its recent acquisitions. The company anticipates capital expenditures of $5.0 to $5.5 million for the full year 2024.