Saga Communications (SGA) Q4 2024 earnings summary

Executive summary

• Underwent significant transformational change over the past two years, focusing on digital disruption and blended advertising strategies.

• Identified a fragmented local digital ad market and positioned to capture a greater share through integrated radio and digital offerings.

• Board of directors refreshed, with ongoing efforts to add digital expertise and enhance governance.

• Net revenue declined 1.3% to $28.8 million in Q4 2024 and 2.2% to $110.3 million for the year compared to prior periods.

• Operating income dropped 64.8% to $984,000 in Q4 and 79.5% to $2.4 million for the year, reflecting higher expenses.

Financial highlights

• Q4 2024 net revenue decreased 1.3% year-over-year to $28.8 million; political revenue rose to $2.0 million from $407,000.

• Station operating expense rose 4.1% in Q4 and 4.5% for the year; capital expenditures were $600,000 in Q4 and $3.8 million for the year.

• Q4 net income was $1.3 million ($0.20 per diluted share); full-year net income was $3.5 million ($0.55 per diluted share).

• Station operating income (non-GAAP) fell 17.2% to $5.9 million in Q4 and 23.1% to $21.1 million for the year.

• Gross interactive revenue grew 20.9% to $11.6 million for the year; e-commerce revenue increased to $2.4 million.

Outlook and guidance

• Q1 2025 pacing down mid to high single digits, but improvement expected in Q2 with revenue turning positive.

• Station operating expense projected to rise 1.5%-2.5% in 2025; corporate G&A expected at $12 million.

• Capital expenditures for 2025 expected between $4 million and $4.5 million.

• Tax rate guidance: 26%-29% with deferred tax rate of 5%-9%.