Saga Communications (SGA) Q3 2024 earnings summary

Executive summary

• Net revenue for Q3 2024 decreased 3.5% year-over-year to $28.1 million; nine-month revenue down 2.5% to $81.5 million.

• Net income for Q3 2024 was $1.3 million ($0.20/share), a 53.6% decrease from Q3 2023; nine-month net income was $2.2 million ($0.35/share), down 68.7% year-over-year.

• Operating income for Q3 2024 was $1.6 million, down 52.9% from Q3 2023; nine-month operating income was $1.4 million, down 84.2% year-over-year.

• Decreases in local and national advertising revenue were partially offset by higher political and digital revenue.

• Demonstrated resilience and community service during Hurricane Helene, keeping stations operational and providing critical information.

Financial highlights

• Q3 station operating expense increased 3.1% to $23.5 million; nine-month expense up 4.7% to $70.0 million.

• Station operating income (non-GAAP) for Q3 was $6.0 million, down 21.2% year-over-year; nine-month figure down 25.2% to $15.2 million.

• Cash and short-term investments totaled $28.7 million as of September 30, 2024.

• Quarterly dividend of $0.25 per share paid, totaling $1.6 million; over $133 million in dividends paid since 2012.

• Capital expenditures were $625,000 for Q3 and $3.2 million for the nine months.

Outlook and guidance

• Q4 pacing remains soft, with expectations to be down low to mid single digits.

• Political revenue for Q4 projected at $2 million, with total year at $3.3 million, below the $6.9 million in 2020 due to station locations.

• Station operating expense expected to rise 3%-5% for the year; annual corporate G&A expense projected at $12.2 million.

• Capital expenditures for 2024 expected between $4 million and $4.6 million.

• Tax rate guidance: 27%-31% with a deferred tax rate of 6.9%.