Saga Communications (SGA) 2 Nov 232023 Q3 Earnings call transcript

Good day, and welcome to the Saga Communications Inc.

Third Quarter Earnings Release and Conference Call. [Operator Instructions] It is now my pleasure to turn the floor over to your host, Chris Forgy, President and CEO. Sir, the floor is yours.

Thank you, Paul, and thanks to all of you who have taken the time to join Saga's Q3 earnings call. interest in continued Communications. your appreciate and Saga participation We today. to We've lot about got a talk

For days. to opportunistic you earnings we're a hear and over starting starters, some pleased in impact might real renewed people, of to next things certain the focus be resources positive our of way. participating and you revenue these calls specific our growth Pretty is report areas few in the won't addition other on

this X% is is points our is a the up quarter, year-to-date, great up For XX%, it of quarter. is headroom, we And ready business continues up up and the amongst was selling down deal that's digits XX% events differently Interactive and XX.X%. and national a most. do brethren. of in up in grow X.X quarter National NTR sector finally, than was for with is National to of And this NTR, for for X.X%. double the the the up or events Digital selling

other which still selling the certificates over and months is trailing $X.X growing. of e-commerce, XX Our of past is has the totaled focus areas million

in several multiple for news our of process information service year and and and this installation in still deploying markets are of We markets the Saga queue our online have in next.

metaphorically You may also ClarksvilleNOW. as familiar this or this refer to with be

continues moved like plastic and loss. business, two moves to things and which too, invisible improvement, surgery, that, continue cosmetic into really and like categories. home perform one is well be and to things And a also number aesthetic category includes growing. still targeted made is three, that. Automotive We professional and has services number roofing, has category HVAC, dentistry in which companies fence insulation, weight to plumbing, surge Number our

personalities, our inside. So a think on Sam, a on-air the air called look they give just tease I when out little

performance. Sam back for some going I'm to to send it So more

tease that done. was a very and you, Thank Chris, nicely

do to the read have I obligatory. Now

that will Form and Factors forward-looking that future described our operations will are all also XX-K. involve non-GAAP measures risks press GAAP contain financial statements in our recent results of our most the Risk call financial This Reconciliation the call to measure This for uncertainties most the contain a of about section of performance data comparable and non-GAAP tables directly are financial the measures. release. certain attached in discussion selected to

now So fun part. the

For the certainly last X.X% quarter $XX ended million million to Political September compared decreased year. revenue performance. year's this XXXX, to XX, net $XX.X impacted

revenue we million have year. last in would year less year. quarter, compared political the for revenue for than X% same $XX.X increased down the X-month the for been to $XXX,XXX our period. X.X% had this gross Station to Without quarter $XXX,XXX for the last As political, overall expense from operating period

XX% call, quarter remarkable approximately increases discussed increase. These an and of or third station expense, no tremendous in As to quarter made and work number a little our or operating amounted after related pay a million taxes recognition giving estimated the XX% give of a the of do. to pay payroll $XXX,XXX year-to-date first compensation the we decision in to years employees strategic and of conference increases staff our increases, the approximately increase of they the $X.X

increase they expenses always utility Similar surveys. and expenses where expenses, operating still and and can previous decrease. rights assure whole the increased on are that that we're Chris sure sales licensing our but making and included decisions to here watching other station programming making quarters, I, in staff increases I fees, where meaningful good and expenses smaller you music insurance, solid health

flat the revenue this period for September compared year. to for last for revenue in for million $XX.X reported period million the political, million the Ed X-months ended X-month XX, for was same These $X.X the XXXX million year. $XXX,XXX XXXX, passing. year the that Adjusting and was Gross more onetime mind X.X% political year-to-date last revenue $X.X for previous in to period, $XX.X period decreased the net For impacted year. expense compared to related last gross in and our Keep of were to by same our calls X-month expenses filings. Christian's third results were detail quarter X-month

$X.X quarter the compared for for XXXX, last to expenditures year. Capital XX, same million $XXX,XXX September was period the ended

capital XXXX. expenditures during We expect to compared period, million For for year the capital $X this to million $X.X currently last million million between and were year. X-month spend expenditures $X.X $X.X

As up XX, to which $XXX,XXX was XXXX. XX% which in up revenue, for ended and was or which as X.X% up or $XXX,XXX X-month interactive, quarter. period see the X.X%, Chris and nontraditional growth we gross was national, And September for said, said, XX.X% Chris respectively, the XX.X%, continue X.X%, gross gross

earlier, direct was local for While recorded quarter to $XXX,XXX to the and the for local important X-month note down revenue that revenue gets XX% increased it's for the these Trailing as to e-commerce, significant well $XXX,XXX XX-months, there million. which XX% teased quarter, our digital continued as growth areas believe still Chris period. as as that be We gross to effort. $X.X approximately revenue was is e-commerce achieved in

level little invest in national, corporate including We specific a grow market both operations, we on a financial and to put on Chris local, the think anything Chris. to to pressure plan NTR you, utilizing our continue strength e-commerce, our as of, team can work else types, and at interactive revenue and strategically

adjusted filings, the our press As reporting starting call we their to complete second non-GAAP Form and our opposed renewed to we included have of focus earnings discussed in quarterly of as abbreviated the a historically financial statement earnings to measures the due releases on have quarter XX-Q. SEC's include review in release statement flows quarter cash our that press our of with second our

and pay a company XX, of will station filings. press users share our to include as $X.XX filings the XXXX. direct an data of and quarterly but to press record to in a to shareholders other per which X tomorrow, comparisons November table, make reconciliation release which also income, of The We dividend reported now previous operating GAAP releases measure, to October the is data non-GAAP of continue income operating allows include financial

now over first since to have past time I of returned future to looks returned I having the investors and $XXX We this the Every to great million our our for to of dividend shareholders over years. believe speak XX XXXX. find special an paid like we return this, Saga $XXX dividends statement what in was amazing the be a confidence of million

return $XX we and shareholders line XXXX said, believe balances our cash continue ongoing The All million dividends to Saga value cash in through declared dividends. of $XX in being and in our to to the a to goal special strong at quarterly financial special recognized. flows million with were prior to position future investment between variable is maintaining short-term our

maintain and level for The Board cash balance the industry based in the and to acquisitions. to may discussions on continues changes our and sheet, right of strategic on conditions, potential radio to change global, national this have relative local economic

for sheet quarter variable. of of XXXX. company's and The October reflects in million to third and $XX.X as as balance Pacing be XX, cash short-term million XXXX, September the $XX.X XX, continues investments

year overall policy, given and to the are continues Fed's We $X.X political. down unsettled mid-single advertising in in environment ongoing rate last booked when gross during political the basically It are factoring uncertain fourth last we quarter quarter, quarter be million year. For the pacing in digits revenue with flat worldwide issues. an economy, the interest to market inflationary other the still fourth currently addition

for to the X.X% expense that station will approximately We increase year operating currently to compared X.X% by our expect XXXX. as

in investments to approximately We In administrative XXXX. $XX environment, by million million staff, and anticipate addition training interactive this will be corporate to for the significantly our ongoing inflationary annual general our and driven sales the $XX.X is developments. expense

it is that, Our X% back forward. with XX% tax to X% expected to rate deferred will of tax I over to Chris. a with XX% going And be to turn

very And were you, thank today. you Sam, Well, Sam. active

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comments, your We attention call. all during Thank and you sarcastic questions, Sam and make for I Communications. appreciate Saga even to like always this interest again you'd for and comments here your in are time if them. And

forward with you to look and again you all month, talking we'll So thank next your time. for

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