Saga Communications (SGA) Noble Capital Markets Emerging Growth Conference summary

Company overview and financial position

• Operates in 28 local markets, focusing on radio after divesting TV assets in 2017 and expanding into digital under new leadership since late 2022.

• Maintains a conservative financial approach with $5 million in debt, $32 million in cash, and a $40 million revolving credit facility.

• Pays a quarterly dividend of $0.25 per share and has a history of special and variable dividends; stock repurchases are being ramped up.

• Recent tower site sales provided additional liquidity without impacting operational costs.

Digital transformation and growth

• Digital ad revenue grew 32.6% year-over-year in Q3 and 17.1% year-to-date, outpacing industry peers who saw declines.

• Blended radio and digital revenue declined only 2.1% year-to-date, significantly less than sector averages.

• Internal research shows pitching blended campaigns to local advertisers increased radio spend by 9.1% and total spend by 27%.

• Digital strategy aims to disrupt 5% of local search and display ad spend, potentially doubling annual gross income.

Strategic vision and market positioning

• Five-year plan targets a revenue mix of one-third radio, one-third search, and one-third display, with digital approaching 67% of total revenue.

• Focuses on hyper-local markets, leveraging community involvement and direct relationships with advertisers.

• Differentiates from larger competitors by providing customer-focused, easy-to-understand digital solutions.

• Prefers smaller markets for deeper local impact rather than expanding into major metropolitan areas.