Saga Communications (SGA) reports higher revenues and earnings but falls short of consensus EPS estimates

| About: Saga Communications, (SGA)

Saga Communications (NYSEMKT:SGA) reported  results on February 24, 2005 for
the fourth quarter and year end 2004.  Below are some highlights.

Results 4Q04 vs. 4Q03:

  • EPS: $0.20 vs. $0.21; consensus was $0.22
  • Revenue: $36.1M vs. $32.9M (+10%); consensus was $35.3M
  • Operating income: $8.7M vs. $8.6M (+1%)
  • Operating margin: 24.1% vs. 26.0% (-190 bps)
  • Net income: $4.1M vs. $4.5M (-9%)
  • Net margin: 11.5% vs. 13.8% (-230 bps)
  • Debt: $121M vs. $121M (flat)
  • Free cash flow: $4.3M vs. $6.0M (-29%)

Same Station Results 4Q04 vs. 4Q03:

Revenue: $30.6M vs. $29.5M (+4%)
Operating income: $10.1M vs. $9.7M (+4%)
Operating margin: 32.9% vs. 32.9% (flat)

Revenue: $3.9M vs. $3.4M (+13%)
Operating income: $0.6M vs. $0.4M (+28%)
Operating margin: 14.2% vs. 12.5% (+170 bps)

Quick comments:

  • No aquisitions during Q4; on January, 1 2005, SGA acquired WWWV-FM, WINA-AM and WQMZ-FM inCharlottesville, VA for $22 million, including $2M in stock; these should contribute $4M in revenue and $1.5M in operating income in 2005
  • Capex during the quarter was $2.9M; $0.8M was acquisition related; 2005 capex is forecast to be $9M
  • Share repurchase: spent $2.9M during quarter to purchase 171,000 shares; to date, have purchased 984,000 shares for $15.2M as part of a $20M share buyback program
  • HD conversion: converting 5 stations in 2005; over next five years will convert 70%-80% of stations
  • Political ads contributed $2.2M in revenues ($1.3M on radio, $460k on TV, and $430k on networks)


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Tagged: , Broadcasting - Radio, Earnings
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