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Sam Bush | CFO |
Good day, ladies and gentlemen, and welcome to the Saga Communications Inc. 20223 First Quarter Earnings Release and Conference Call.
It is now my pleasure to turn the floor over to your host, Sam Bush. Sir, the floor is yours.
Thank you, Matthew.
let family that be emergency call. to away was joining wanted a with today I you Chris know pulled the First, and won't did, as his to He along. me he pass what wanted notes leave however, to with
you So, and the have, incorporated the them comments. my would color them he with into while that bring I I've can't to flare
that uncertainties also most measures. future Now, a recent financial contain forward-looking Form will are non-GAAP most XX-K. This for all This are performance for results GAAP of the section disclaimer. call and call Risk financial financial selected obviously and will the attached of basic non-GAAP most involve comparable of tables. to in described our the the contain directly operations data certain the about measures that fun, our discussion Reconciliation measure risks the Factors statements in
my national the was Saga X% operating compared of million. last to to period. during $XX.X income For same was million compared the year. gross last the X.X% win increased little $XXX,XXX Station quarter at to Station revenue. increased Political $XXX,XXX. ended down up revenue comments. income overall March in year-over-year, our to about was $X.X $XXX,XXX the to three-month the $XX particular net decreased million for National had, more for inconsequential XXXX, quarter expense and one $XXX,XXX represents $X.X million X% for quarter approximately Operating period operating approximately talk later I'll XX, revenue year. $XX.X million a
decision and After conditions number to no over recognize XXXX, give giving employees our were operating for staff years, the they as of in that many a of years important of main we market XXXX up to to as the the level. release, years station a having of indicated As press and the given inflationary at increases Saga in recognition little increases, were tremendous COVID the compensation employee remarkable did costs current environment. the well them made expenses pay of compensation our healthcare were two and the economic past of work issues including the reasons
quarter, the accounted approximately payroll our overall for expense of $XXX,XXX and increases operating taxes well-deserved related station For pay these increases.
for Being on our always accounted $XXX,XXX. increases self-insured, based incurred. healthcare vary costs Healthcare actual another quarterly quarter-to-quarter expenses the from
by out to operating expenses it expenses, increases estimate including programming costs, that in healthcare what reflecting way, And some quarterly have are an quarters station revenue. and revenue, is our year, having increase in credit quarters with but streaming sales last to surveys, some the increased card sales we costs reduced related and means fees. flat sales meaningful having a be, to hard some to we're training, Other in interactive SoundExchange, there, our our fees commissions, because is utility thing an rights average increase from include SoundExchange, always showing time time good obviously going still being over future Although historically year, seen smaller some meaningful to the them increases, costs. even
We financial local, including a revenue operations, and invest to to and e-commerce intend market national, our strategically interactive, level specific types, we utilize strength and in our grow as both corporate NTR. at
lead will revenue that the upfront seed from investing are money spend. We we to important gains
before with already we Schulze all of sales markets Andrew and seeing February, showing early that addition have respectively. is our April, certificate this XX% in the growing XX%, e-commerce are leading and the running our with March, up XX% And promise, program. With returns efforts, and the we
at bit less revenue and revenue, stations a in sponsorship is I WIBC than generate advertisers in Indiana promote to giveaways opportunity these cash as $XX,XXX. time. it a all listeners have net remember connect up old-fashioned of our we an cost great where and is with the on of The to growing some the types radio already of promotion, listener. Another hearing What passed away and give lucky our well to that a $XXX,XXX having of we fun. as
day over first Pretty the of On contest, this X,XXX in entries had impressive. we contest. the
do in years, in While now the has just being more the years. two last Likewise, on days, few just and sales generated a than to the from new of more to nationwide. moving of result $XXX,XXX the opportunity handle do business events more markets XX%. NTR one able our client's quarter were over we ad over now than We COVID for revenue our increased lot digital can the a
Director new to their rated working storytelling, and Chris greater markets, to clients' provide allow teams with our our and their to fit better unrated, all him, Christino, Mario been our tailor sales quantitatively as to call needs. likes Finally, proposals visibility of has to qualitatively
like national the which None on radio pulling position broadcast financial our great us are way invest to business. back, done. to board our of guy uncertain be on conditions A example, when is it to take Storytelling. XXX% puts in $XX,XXX Nielsen This to amount for we data And us a For able weather given game-changers thus now opportunities in to one available, strength, our the is the efforts. name of additions we national Director the buy they these but to to our that of combined, pitch the revenue an - be across Dunkin', the that markets, allows get of of their able is Mario that instead due data the we are all turn own, being core great won that these should that economic expending. our markets, and for into stories expanding are given
The quarter $X.X $X.XX a quarterly the to to XXXX, quarter per on flow record were still which Capital cash X, income quarter the $XXX,XXX, capital compares between same Moving expect was the company million and to be expenditures on. last paid for million Net share the on year. for million We last was year. million April compared cash last to March Free for XXXX. this million expenditures of year. compared XX, $XXX,XXX $X.X million $X $X.X $X.X year. to for $X.X shareholders dividend first period
We $XXX over position dividends XXXX. was paid shareholders said, believe continue of to the declared XXXX between future being recognized. dividend million value to with prior a our of cash and balances now quarterly, in special our to special $XX line goal in $XX variable our Saga our cash The maintaining to and dividends. million All ongoing short-term returned dividends to financial we flows since in first investment and special, to the million have in strong return shareholders through is were
Board on acquisitions. cash have on economic this the our national, to The balance right in change based discussions continues changes to conditions, to the and for local industry, and may global, relative radio strategic and level potential sheet, of the maintain
reminder, just the increasing December, continuing year-end the balance quarterly will referred based shareholders, adopted to I applicable, dividends special in stock cash returns results variable each while this net This minute new and calculated policy a a we of in through cash flow, acquisitions. dividend, reported company XX% variable simultaneously Saga's goal is reported and debt ago, based be the quarter Just and to grow sheet a Saga's maintaining dividend Board strong buybacks. of of to The on on year strategic year's as if dividend policy. of amount year. acquisitions and the declared, annual of is closed, The preceding from paydowns, second the preceding free declared a
in declared call, dividend won't year, this As XXXX $X.X year-end be dividends special the XXXX. a reported variable quarterly $XX.X conference in in million our there fourth million declared in quarter and and given dividends
XXXX. subject reflects acquisition The has $XX.X Of course, future been along short-term million factors balance sheet the $XX all in million to for XX-K, quite we in as second as May investments dividends March cash risk of the our Pacing variable. the company's with XXXX, are and of XX, potential opportunities. quarter and X, described
the to which we is tell low down going of currently single being single For mid-single June, made to This digits, really digits. happen, digits, down April to being and are being down is pacing May still single what's low up low up too early quarter, low digits.
in the revenue to digits. X.X% look compared comparing to be to given you million, economy, the XXXX, the to For policy, environment. the revenue well We Fed's uncertain for as $X.X of rate year, of be year Keep as are at increase station interest we inflationary by down political the advertising rest that that we the expect operating year's expense our as unsettled expect as that to X.X% XXXX. ongoing mind and market continues currently full last low single will it approximately
and our ongoing is inflationary driven significantly by In the sales, addition to staff, this development. interactive training, our investments in environment,
tax deferred expected of forward. to is be to rate XX%, tax to X% XX% a with going X% Our
our ultimately to for, it's part the putting been achieve to team opportunities wanted resources their said Under since of an of to them a lot them. a This their what From an revenue point local, know assist the would is preparations with customers strategic that with all has today. produces perception. more this Chris the in broadcasters' work us this of happen. that from listening Baptist of those our that Saga markets call, the Rick for as have we moving ours the long-term early as national, to but referenced for every of as read WNOR, everyone - became revenue important received. all I been frequently making I at because wanted on Chris I the on and out continues aspects personality he as have to revenue and our no teachers. being on station as elementary was preachers observation bit I cetera, already so in past, of Chris to said in was on He his planning result and I are are we in Chris teacher, on our in hands focused to actual our he in spend us NTR, to how Norfolk, the what Chris business I've investments if known the closing revenue products, morning important us forward. and of an digital, morning various "Chris, And of earnings them is that profits. allow our comes outcomes fellow our learned My customers." both grew teams personality his time types, that mom that serve to we those in are we he mistake, on produce going school him, the looking calls was that et a elegant a will of bit focused dad about customers e-mail out all President percentage instill to you long, radio my the I and to pass day my talked I Virginia. and Saga email from and grow he our results. know friend think about with better think well. they American processes a an money members certain in that lot with well minister, those December, that an up. have create if leadership people, we that's them about. always works FMXX discipline silos down both up the see a a Rumble equip business make me to I'm CEO we or I that, in Chris demonstration actual and what is rock producers Rick grow told close to He points of to Chris' know
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You're Rick, who all you amazing else and so Shelley, Thank had part in are literally our everyone angels. much this." donors, Rod, a and
difference is shareholders. many, Saga very many impact many so that the that have our on We relevant. our stories we clients, we and listeners, that listener a and still communities, this and are have radio more our our for had shows client people like making and certainly
performing category. of third is question whereas was historically, other is radio auto this to indicated time, largest largest would It at now We grow our in third as station it I this agree the the historically, about It number goes that quarter, little up would back our less better. category. XX% is category, first auto did our have XX% category Second But this a in that groups have with that. saw quarter-after-quarter, by category it years, year-after-year. year. been in XX% point largest a than a
to streaming Yes, Our stations largest home category, Are be our by improvement. of the point? this we way, at continues are. all
our All a does virtually are stations of those one that make repetitive, of we that stream, few that a but small have difference, stations every don't stream. and
March little And individual Final varied. was, X.X%. February in what is about performance was up up was only was January it particular question the quarter? up the X%. was a this month-by-month than from X.X%. X%, less
was quarter. X.X%, X% between about up the in or already second pacings to So, variance while up up, the month meaningful I was talked each being note.
part they're are environment. that it's it. advertising is this but it, lot know guess varies. to global was There's time about, going an interest impact don't the of all there based maybe things. question we're out, the in But from just about the it community. doing as of Again, with Fed that with answers again, what today, about done They're I with What is concerned on current advertising They're what individual, environment. rates, what on concerned the question. it economic markets people already I And the the inflation. fact, that and I about has concerned So, concerned. the one market actually, just comes said, They're tone the hopefully, very other they've of and tune a do, our of
markets, we lot a positive still get of Some feedback.
lot of Some feedback advertisers, get a we positive from.
feedback to into we where, markets, up it things. get some our But that's us don't again, turn feedback. take it's as sellers positive Some that much to and degree, to good and
advertising something they anymore. that in the been right signed air in up had a they we yet They but an not on where was In they sense cash that they to to But know of Hand Your environment going of because contest do hadn't we this me for had involved made seeing wanted conditions. that, were did get traditional their one that work sponsorship and situations sponsorship. for doing. tell I market the for a wasn't that advertiser I for that We've the while economic Grand were the economic giveaway sponsorship
effect position emotional feel times, but strength of products advertiser do that as and of think well resources well, we to advertising, ahead it's invest those And feelings economy out as type that." are the volatile degree, come need. environment, in trends have whatever have, I the situation, net is, what to we have do we to down, that put we're to in move we whatever the well to forward. through and folks forward. to be current it's they with again, I of any we're recessionary settles buy. we all comfortable our the overall to where our I move have during folks, financial times also saying, Variables able in giving I are of think continue economic the this a giving And top the And don't advertiser. again, to in go inflationary do economy to them, come ourselves top as economic this. we by those. of those would In varied. type it's on But across, emotions market-by-market, "Oh, this company, there's some because So, on be very think a an is But situation,
digital Overall, revenues Can streaming some little had for XX%. you We other earlier. referred of over was were to up up X% we growth We areas, breakdown and QX? had in digital. provide a questions. I certain a over Streaming
some was have growth we to every already. NTR, effect our seeing activity. training that about that digital, some in do help and net through came we're have champions to be digital. market business digital We the able question good augment - with to and That is, in So, in other plans investing specific QX by talked some us things We do core in. ongoing another through
acquisition what right the They're there out And on. more What The over very are like? know multiples? look the other are to now. general if don't Truthfully, one, going two there multiples anything board, does questions. management there's market all because I number are little
open it's you're x So, flow, acquisitions when multiple Whatever it a be, set x trade or begun was hard to see some done. that our one all up times times we opportunities that times to say that cash and are to or doing multiples EBITDA, y specifically happens y cash things, occurred we in one deal flow, times on EBITDA. the see have Hopefully, that some market. to of
One discipline. things talked the of is on Chris about the call would more have
of very all in very, do. think you our who of in disciplined overall, has calls in disciplined our very for you are been We're disciplined years, to everything acquisitions. we we that We're know, I just, listening very any our operations.
in with, philosophy for to big yet But to market, do if some very of are about, that was and be with see a his Christian, we to good it Chris fact, enough And acquisitions that not But that in enough you're now, Chairman, believe about disciplined what comfortable share to - you. about that our again, he what there discipline isn't it And we the had discipline you be Ed all had quick at us. just me we disciplined, - degree, a multiples all notes disappointed. had for the whatever for talking Founder feel And he instilled quote market in in very, do. talking we look going you'll In in that philosophy. are. as looking to
meetings. part the and with in feel We there talk Board that cash meeting. here whether in every management a us talk discussions question about conversation stock dividends continue more aggressive Board see and as is that. be dividends. tell sit so will of you there's buyback? can't I form it's just necessary and than dividends cash buybacks valuation is discussion what I with we're something stock stock a it about, will you, that versus is them you'll It's being using and about we'll about it forward. open a buyback, certain Then discussed always begin level in or of between go market, at Directors' we conjunction price some a buybacks, to where But forth. buybacks, stock a can conjunction doing tell with of our And We today in it's be whether a doing will price the
going We're in and proud appreciate where proud Hopefully, to call, you and quite We're And team, to glad we're We'll we you the up of morning, talk us of took wrap that's feel everybody given the of the give as to and to the about that's of all a all who call. all I call. we investors call. our on and appreciate to this Saga. we think be you. our of listen bit do. time a future what always the proud free We're to
to that, Matthew, over back turn to with to it I'm So, up. you going wrap
event. Certainly. today's concludes Thank you, This everyone.
wonderful You you your have may participation. this for day. a at and Thank disconnect time,
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