Saga Communications, Inc. Reports 4th Quarter and Year End 2015 Results Free Cash Flow increased 2.9% for the Year

Saga Communications, Inc. Reports 4th Quarter and Year End 2015 Results Free Cash Flow increased 2.9% for the Year

GROSSE POINTE FARMS, Mich., March 8, 2016 /PRNewswire/ -- Saga Communications, Inc. (NYSE MKT: SGA) today reported free cash flow increased 2.2% to $6.8 million for the quarter ended December 31, 2015. Gross revenue without political increased 2.1% for the quarter. Net revenue (including political) decreased 2.1% to $35.6 million. Station operating expense increased 1.0% to $25.9 million (station operating expense includes depreciation and amortization attributable to the stations). Operating income decreased $1.4 million primarily due to the recognition of a $1.2 million gain during the 4(th) Quarter of 2014 in other operating income from the sale of four of the Company's radio networks and the non-cash impairment charge of $1.9 million during the quarter in 2014 compared to $874 thousand in 2015. Net income for the period was $3.7 million ($0.63 per fully diluted share).

Free cash flow increased 2.9% to $21.6 million for the year ended December 31, 2015. Gross revenue without political increased 0.7% for the year. Net revenue (including political) decreased 0.9% to $132.9 million. Station operating expense decreased 1.2% to $97.3 million (station operating expense includes depreciation and amortization attributable to the stations). Operating income decreased $1.9 million. Net income for the year was $13.4 million ($2.29 per fully diluted share).

Capital expenditures were down $600 thousand to $1.1 million in the 4(th) quarter compared to $1.7 million for the same period last year. For the year capital expenditures were approximately even with last year at $5.5 million. The Company currently expects to spend approximately $5.0 million to $5.5 million for capital expenditures during 2016.

During the 4(th) Quarter the Company entered into an Asset Purchase Agreement to purchase WLVQ - FM in Columbus, OH for $13.0 million as well as disposing of its last radio network, the Illinois Radio Network. The Company begin operating WLVQ - FM pursuant to a Local Marketing Agreement as of November 16, 2015. The Company closed on its purchase of WLVQ on February 3, 2016.

Saga's 2015 4(th) Quarter and Year End conference call will be on Tuesday, March 8, 2016 at 11:00 a.m. EST. The dial-in number for the call is (612) 234-9960. A transcript of the call will be posted to the Company's website.

The Company requests that all parties that have a question that they would like to submit to the Company to please email the inquiry by 10:00 a.m. EST on March 8, 2016 to SagaIR@sagacom.com. The Company will discuss, during the limited period of the conference call, those inquiries it deems of general relevance and interest. Only inquiries made in compliance with the foregoing will be discussed during the call.

The attached Selected Supplemental Financial Data tables disclose "actual" and "same station" information by segment as well as the Company's trailing 12 month consolidated EBITDA. The "actual" amounts reflect our historical financial results and include the results of operations for stations that we did not own for the entire comparable period. The "same station" amounts reflect only the results of operations for stations that we owned for the entire comparable period.

Saga utilizes certain financial measures that are not calculated in accordance with generally accepted accounting principles (GAAP) to assess its financial performance. Such non-GAAP measures include same station financial information, free cash flow, trailing 12 month consolidated EBITDA, and leverage ratio. These non-GAAP measures are generally recognized by the broadcasting industry as measures of performance and are used by Saga to assess its financial performance including, but not limited to, evaluating individual station and market-level performance, evaluating overall operations, as a primary measure for incentive based compensation of executives and other members of management and as a measure of financial position. Saga's management believes these non-GAAP measures are used by analysts who report on the industry and by investors to provide meaningful comparisons between broadcasting groups, as well as an indicator of their market value. These measures are not measures of liquidity or of performance in accordance with GAAP, and should be viewed as a supplement to and not as a substitute for the results of operations presented on a GAAP basis including net operating revenue, operating income, and net income. Reconciliations for all of the non-GAAP financial measures to the most directly comparable GAAP measure are attached in the Selected Consolidated and Supplemental Financial Data tables.

This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words such as "believes," "expects," "anticipates," "guidance" and similar expressions are intended to identify forward-looking statements. Key risks, including risks associated with Saga's ability to effectively integrate the stations it acquires and the impact of federal regulation on Saga's business, are described in the reports Saga periodically files with the U.S. Securities and Exchange Commission, including Item 1A of our Annual Report on Form 10-K. Readers should note that these statements may be impacted by several factors, including national and local economic changes and changes in the radio and television broadcast industry in general, as well as Saga's actual performance. Results may vary from those stated herein and Saga undertakes no obligation to update the information contained here.

Saga is a broadcasting company whose business is devoted to acquiring, developing and operating broadcast properties. Saga owns or operates broadcast properties in 26 markets, including 67 FM and 32 AM radio stations, 4 television stations and 5 low-power television stations. For additional information, contact us at (313) 886-7070 or visit our website at www.sagacom.com.




Saga Communications, Inc.

Selected Consolidated Financial Data

For The Three and Twelve Months Ended

December 31, 2015 and 2014

(amounts in 000's except per share data)

(Unaudited)


Three Months Ended Twelve Months Ended

December 31, December 31,

2015 2014 2015 2014
---- ---- ---- ----

Operating Results

Net operating revenue $35,606 $36,371 $132,856 $133,998

Station operating expense 25,868 25,612 97,268 98,424

Corporate general and administrative 2,449 2,321 10,091 8,901

Other operating expense (income), net 94 (1,210) 541 (1,210)

Impairment of intangible assets 874 1,936 874 1,936

Operating income 6,321 7,712 24,082 25,947

Interest expense 174 252 888 1,064

Write-off of debt issuance costs - - 557 -

Other income - (33) (417) (71)

Income tax expense 2,450 3,050 9,640 10,050
----- ----- ----- ------

Net income $3,697 $4,443 $13,414 $14,904
====== ====== ======= =======


Earnings Per Share

Basic $0.63 $0.77 $2.31 $2.57
===== ===== =====

Diluted $0.63 $0.76 $2.29 $2.55
===== ===== =====


Weighted average common shares 5,732 5,709 5,706 5,700

Weighted average common and common

equivalent shares 5,741 5,757 5,740 5,753


Free Cash Flow

Net income $3,697 $4,443 $13,414 $14,904

Plus: Depreciation and amortization:

Station 1,842 1,682 6,534 6,434

Corporate 56 63 290 268

Write-off of debt issuance costs - - 557 -

Deferred tax provision 910 1,255 3,640 3,385

Non-cash compensation 455 254 1,655 826

Other operating expense (income), net 94 (1,210) 541 (1,210)

Impairment of intangible assets 874 1,936 874 1,936

Other income - (33) (417) (71)

Less: Capital expenditures (1,116) (1,723) (5,543) (5,524)

Free cash flow $6,812 $6,667 $21,545 $20,948
====== ====== ======= =======


December 31,

2015 2014
---- ----

Balance Sheet Data

Working capital $33,557 $30,554

Net fixed assets $58,131 $55,187

Net intangible assets and other assets $98,545 $93,270

Total assets $204,571 $192,044

Long-term debt $36,365 $36,078

Stockholders' equity $122,816 $115,245







Saga Communications, Inc.

Selected Supplemental Financial Data

For the Three Months Ended

December 31, 2015 and 2014

(amounts in 000's except per share data)

(Unaudited)


Actual Same Station (1) Pro Forma (2)

Three Months Ended Three Months Ended Three Months Ended

December 31, December 31, December 31,

2015 2014 2015 2014 2015 2014
---- ---- ---- ---- ---- ----

Consolidated

Net operating revenue $35,606 $36,371 $34,237 $35,644 $36,187 $38,638

Station operating expense 25,868 25,612 24,593 25,164 26,325 27,217

Corporate general and administrative 2,449 2,321 2,449 2,321 2,449 2,321

Other operating expense (income), net 94 (1,210) 22 - 94 (1,210)

Impairment of intangible assets 874 1,936 874 1,936 874 1,936

Operating income 6,321 7,712 $6,299 $6,223 6,445 8,374

Interest expense 174 252 174 252

Other income - (33) - (33)

Income tax expense 2,450 3,050 2,501 3,322

Net income $3,697 $4,443 $3,770 $4,833
====== ====== ====== ======

Earnings per share:

Basic $0.63 $0.77 $0.66 $0.85
===== ===== ===== =====

Diluted $0.63 $0.76 $0.66 $0.84
===== ===== ===== =====


Actual Same Station (1) Pro Forma (2)

Three Months Ended Three Months Ended Three Months Ended

December 31, December 31, December 31,

2015 2014 2015 2014 2015 2014
---- ---- ---- ---- ---- ----

Radio Segment

Net operating revenue $29,963 $30,451 $28,594 $29,724 $30,544 $32,718

Station operating expense 22,122 22,146 20,847 21,698 22,579 23,751

Other operating expense (income), net 85 (1,210) 13 - 85 (1,210)

Impairment of intangible assets 874 1,936 874 1,936 874 1,936

Operating income $6,882 $7,579 $6,860 $6,090 $7,006 $8,241
====== ====== ====== ====== ====== ======



Actual Same Station (1) Pro Forma (2)

Three Months Ended Three Months Ended Three Months Ended

December 31, December 31, December 31,

2015 2014 2015 2014 2015 2014
---- ---- ---- ---- ---- ----

Television Segment

Net operating revenue $5,643 $5,920 $5,643 $5,920 $5,643 $5,920

Station operating expense 3,746 3,466 3,746 3,466 3,746 3,466

Other operating expense (income), net (1) - (1) - (1) -

Operating income $1,898 $2,454 $1,898 $2,454 $1,898 $2,454
====== ====== ====== ====== ====== ======



Actual Same Station (1) Pro Forma (2)

Three Months Ended Three Months Ended Three Months Ended

December 31, December 31, December 31,

2015 2014 2015 2014 2015 2014
---- ---- ---- ---- ---- ----

Depreciation and amortization

by segment

Radio Segment $1,459 $1,312 $1,265 $1,316 $1,459 $1,459

Television Segment 383 370 383 370 383 370

Corporate and Other 56 63 56 63 56 63

$1,898 $1,745 $1,704 $1,749 $1,898 $1,892
====== ====== ====== ====== ====== ======


(1) Same station includes only the results of stations we owned and operated for the entire comparable period.

(2) Pro Forma results assume all acquisitions in 2015 occurred as of January 1, 2014.





Saga Communications, Inc.

Selected Supplemental Financial Data

For the Twelve Months Ended

December 31, 2015 and 2014

(amounts in 000's except per share data)

(Unaudited)


Actual Same Station (1) Pro Forma (2)

Twelve Months Ended Twelve Months Ended Twelve Months Ended

December 31, December 31, December 31,

2015 2014 2015 2014 2015 2014
---- ---- ---- ---- ---- ----

Consolidated

Net operating revenue $132,856 $133,998 $130,916 $131,582 $139,458 $143,238

Station operating expense 97,268 98,424 95,484 96,145 102,226 104,912

Corporate general and administrative 10,091 8,901 10,091 8,901 10,091 8,901

Other operating expense (income), net 541 (1,210) 69 - 541 (1,210)

Impairment of intangible assets 874 1,936 874 1,936 874 1,936

Operating income 24,082 25,947 $24,398 $24,600 25,726 28,699

Interest expense 888 1,064 888 1,064

Write-off of debt issuance costs 557 - 557 -

Other income (417) (71) (417) (71)

Income tax expense 9,640 10,050 10,314 11,179

Net income $13,414 $14,904 $14,384 $16,527
======= ======= ======= =======

Earnings per share:

Basic $2.31 $2.57 $2.52 $2.90
===== ===== ===== =====

Diluted $2.29 $2.55 $2.51 $2.87
===== ===== ===== =====


Actual Same Station (1) Pro Forma (2)

Twelve Months Ended Twelve Months Ended Twelve Months Ended

December 31, December 31, December 31,

2015 2014 2015 2014 2015 2014
---- ---- ---- ---- ---- ----

Radio Segment

Net operating revenue $111,792 $113,627 $109,852 $111,211 118,394 122,867

Station operating expense 83,188 85,167 81,404 82,888 88,146 91,655

Other operating expense (income), net 499 (1,210) 27 - 499 (1,210)

Impairment of intangible assets 874 1,936 874 1,936 874 1,936

Operating income $27,231 $27,734 $27,547 $26,387 $28,875 $30,486
======= ======= ======= ======= ======= =======



Actual Same Station (1) Pro Forma (2)

Twelve Months Ended Twelve Months Ended Twelve Months Ended

December 31, December 31, December 31,

2015 2014 2015 2014 2015 2014
---- ---- ---- ---- ---- ----

Television Segment

Net operating revenue $21,064 $20,371 $21,064 $20,371 21,064 20,371

Station operating expense 14,080 13,257 14,080 13,257 14,080 13,257

Other operating expense (income), net 32 - 32 - 32 -

Operating income $6,952 $7,114 $6,952 $7,114 $6,952 $7,114
====== ====== ====== ====== ====== ======



Actual Same Station (1) Pro Forma (2)

Twelve Months Ended Twelve Months Ended Twelve Months Ended

December 31, December 31, December 31,

2015 2014 2015 2014 2015 2014
---- ---- ---- ---- ---- ----

Depreciation and amortization

by segment

Radio Segment $5,135 $5,023 $4,846 $4,962 $5,530 $5,662

Television Segment 1,399 1,411 1,399 1,411 1,399 1,411

Corporate and Other 290 268 290 268 290 268

$6,824 $6,702 $6,535 $6,641 $7,219 $7,341
====== ====== ====== ====== ====== ======


(1) Same station includes only the results of stations we owned and operated for the entire comparable period.

(2) Pro Forma results assume all acquisitions in 2015 occurred as of January 1, 2014.





Saga Communications, Inc.

Selected Supplemental Financial Data

December 31, 2015

(amounts in 000's except ratios)

(Unaudited)




Twelve Months Trailing

Ended Add: Twelve Months Ended

December 31, Proforma December 31,

2015 Acquisitions 2015 2014 (2)
---- ------------ ---- -------

Trailing 12 Month Consolidated Earnings Before Interest

Taxes, Depreciation and Amortization ("EBITDA") (1)

Net income $13,414 $970 $14,384 $14,904

Exclusions:

Gain (loss) on sale of assets (541) - (541) 1,281

Gain on insurance claim 417 - 417 -

Impairment of intangible assets (874) - (874) (1,936)

Write-off of debt issuance costs (557) - (557) -

Other 119 - 119 213

Total exclusions (1,436) - (1,436) (442)
------ --- ------ ----


Consolidated adjusted net income (1) 14,850 970 15,820 15,346

Plus: Interest expense 888 - 888 1,064

Income tax expense 9,640 674 10,314 10,050

Depreciation & amortization expense 6,824 395 7,219 6,702

Amortization of television syndicated programming contracts 637 - 637 637

Non-cash stock based compensation expense 1,655 - 1,655 826

Less: Cash television programming payments (635) - (635) (627)

Trailing twelve month consolidated EBITDA (1) $33,859 $2,039 $35,898 $33,998
======= ====== ======= =======


Total long-term debt, including current maturities $36,365 $36,078

Divided by trailing twelve month consolidated EBITDA (1) 35,898 33,998

Leverage ratio 1.0 1.1
=== ===



(1) As defined in the Company's credit facility.

(2) December 31, 2014 did not include any proforma acquisitions





Saga Communications, Inc.

Selected Financial Data Non-GAAP Disclosures

For the Three Months Ended

December 31, 2015 and 2014

(amounts in 000's)

(Unaudited)



Reconciliation of Actual (historical) Information to Same Station Operating Income
----------------------------------------------------------------------------------


Adjustment Adjustment

Actual For Acquisitions Same Station Actual For Acquisitions Same Station

Three Months and Dispositions Three Months Three Months and Dispositions Three Months

Ended Not Included in Ended Ended Not Included in Ended

December 31, Entire Comparable December 31, December 31, Entire Comparable December 31,

2015 Period 2015 2014 Period 2014
---- ------ ---- ---- ------ ----

Consolidated

Net operating revenue $35,606 $(1,369) $34,237 $36,371 $(727) $35,644

Station operating expense 25,868 (1,275) 24,593 25,612 (448) 25,164

Corporate general and administrative 2,449 - 2,449 2,321 - 2,321

Other operating expense (income), net 94 (72) 22 (1,210) 1,210 -

Impairment of intangible assets 874 - 874 1,936 - 1,936

Operating income $6,321 $(22) $6,299 $7,712 $(1,489) $6,223
====== ==== ====== ====== ======= ======


Depreciation and amortization $1,898 $(194) $1,704 $1,745 $4 $1,749
====== ===== ====== ====== === ======


Adjustment Adjustment

Actual For Acquisitions Same Station Actual For Acquisitions Same Station

Three Months and Dispositions Three Months Three Months and Dispositions Three Months

Ended Not Included in Ended Ended Not Included in Ended

December 31, Entire Comparable December 31, December 31, Entire Comparable December 31,

2015 Period 2015 2014 Period 2014
---- ------ ---- ---- ------ ----

Radio Segment

Net operating revenue $29,963 $(1,369) $28,594 $30,451 $(727) $29,724

Station operating expense 22,122 (1,275) 20,847 22,146 (448) 21,698

Other operating expense (income), net 85 (72) 13 (1,210) 1,210 -

Impairment of intangible assets 874 - 874 1,936 - 1,936

Operating income $6,882 $(22) $6,860 $7,579 $(1,489) $6,090
====== ==== ====== ====== ======= ======


Depreciation and amortization $1,459 $(194) $1,265 $1,312 $4 $1,316
====== ===== ====== ====== === ======


Adjustment Adjustment

Actual For Acquisitions Same Station Actual For Acquisitions Same Station

Three Months and Dispositions Three Months Three Months and Dispositions Three Months

Ended Not Included in Ended Ended Not Included in Ended

December 31, Entire Comparable December 31, December 31, Entire Comparable December 31,

2015 Period 2015 2014 Period 2014
---- ------ ---- ---- ------ ----

Television Segment

Net operating revenue $5,643 $ - $5,643 $5,920 $ - $5,920

Station operating expense 3,746 - 3,746 3,466 - 3,466

Other operating expense (income), net (1) - (1) - - -

Operating income $1,898 $ - $1,898 $2,454 $ - $2,454
====== ======================= ====== ====== ======================= ======


Depreciation and amortization $383 $ - $383 $370 $ - $370
==== ======================= ==== ==== ======================= ====





Saga Communications, Inc.

Selected Financial Data Non-GAAP Disclosures

For the Twelve Months Ended

December 31, 2015 and 2014

(amounts in 000's)

(Unaudited)



Reconciliation of Actual (historical) Information to Same Station Operating Income
----------------------------------------------------------------------------------


Adjustment Adjustment

Actual For Acquisitions Same Station Actual For Acquisitions Same Station

Twelve Months and Dispositions Twelve Months Twelve Months and Dispositions Twelve Months

Ended Not Included in Ended Ended Not Included in Ended

December 31, Entire Comparable December 31, December 31, Entire Comparable December 31,

2015 Period 2015 2014 Period 2014
---- ------ ---- ---- ------ ----

Consolidated

Net operating revenue $132,856 $(1,940) $130,916 $133,998 $(2,416) $131,582

Station operating expense 97,268 (1,784) 95,484 98,424 (2,279) 96,145

Corporate general and administrative 10,091 - 10,091 8,901 - 8,901

Other operating expense (income), net 541 (472) 69 (1,210) 1,210 -

Impairment of intangible assets 874 - 874 1,936 - 1,936

Operating income $24,082 $316 $24,398 $25,947 $(1,347) $24,600
======= ==== ======= ======= ======= =======


Depreciation and amortization $6,824 $(289) $6,535 $6,702 $(61) $6,641
====== ===== ====== ====== ==== ======


Adjustment Adjustment

Actual For Acquisitions Same Station Actual For Acquisitions Same Station

Twelve Months and Dispositions Twelve Months Twelve Months and Dispositions Twelve Months

Ended Not Included in Ended Ended Not Included in Ended

December 31, Entire Comparable December 31, December 31, Entire Comparable December 31,

2015 Period 2015 2014 Period 2014
---- ------ ---- ---- ------ ----

Radio Segment

Net operating revenue $111,792 $(1,940) $109,852 $113,627 $(2,416) $111,211

Station operating expense 83,188 (1,784) 81,404 85,167 (2,279) 82,888

Other operating expense (income), net 499 (472) 27 (1,210) 1,210 -

Impairment of intangible assets 874 - 874 1,936 - 1,936

Operating income $27,231 $316 $27,547 $27,734 $(1,347) $26,387
======= ==== ======= ======= ======= =======


Depreciation and amortization $5,135 $(289) $4,846 $5,023 $(61) $4,962
====== ===== ====== ====== ==== ======


Adjustment Adjustment

Actual For Acquisitions Same Station Actual For Acquisitions Same Station

Twelve Months and Dispositions Twelve Months Twelve Months and Dispositions Twelve Months

Ended Not Included in Ended Ended Not Included in Ended

December 31, Entire Comparable December 31, December 31, Entire Comparable December 31,

2015 Period 2015 2014 Period 2014
---- ------ ---- ---- ------ ----

Television Segment

Net operating revenue $21,064 $ - $21,064 $20,371 $ - $20,371

Station operating expense 14,080 - 14,080 13,257 - 13,257

Other operating expense (income), net 32 - 32 - - -

Operating income $6,952 $ - $6,952 $7,114 $ - $7,114
====== ======================= ====== ====== ======================= ======


Depreciation and amortization $1,399 $ - $1,399 $1,411 $ - $1,411
====== ======================= ====== ====== ======================= ======






SOURCE Saga Communications, Inc.

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Saga Communications, Inc.

CONTACT: Samuel D. Bush, 313/886-7070

Web Site: http://www.sagacommunications.com


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