/C O R R E C T I O N -- Saga Communications, Inc./
In the news release, Saga Communications, Inc. Announces the Sale of its Television Stations and the Purchase of 5 Radio Stations Serving the Charleston, SC Radio Market and 3 Radio Stations Serving the Hilton Head, Bluffton and Beaufort, SC Radio Market, issued 06-Sep-2017 by Saga Communications, Inc. over PR Newswire, we are advised by the company that two Selected Supplemental Financial Data tables were not included, as originally issued inadvertently. The complete, corrected release follows:
Saga Communications, Inc. Announces the Sale of its Television Stations and the Purchase of 5 Radio Stations Serving the Charleston, SC Radio Market and 3 Radio Stations Serving the Hilton Head, Bluffton and Beaufort, SC Radio Market
GROSSE POINTE FARMS, Mich., Sept. 6, 2017 /PRNewswire/ -- Saga Communications, Inc. (NYSE American: SGA) announced today that on September 1, 2017 it closed on the previously announced sale of its television stations to the Evening Telegram Company d/b/a Morgan Murphy Media for an aggregate purchase price of approximately $66.6 million.
Edward K. Christian, President and Chief Executive Officer of the Company said, "It's a bittersweet time as we complete the sale of our Joplin, MO and Victoria, TX television stations.We've enjoyed owning the stations and they have been great contributors to our overall performance over the years.With all the changes taking place in the television industry it became time to turn them over to a fine company that plans to continue to grow in the television segment. It has been a great experience for us to serve both communities with terrific television stations that focused heavily on the local markets.Ultimately, we made a very difficult decision that it was time for us to return to our roots in radio."
The Company also announced that effective September 1, 2017, it completed the previously reported purchase of the assets of WCKN(FM), WMXZ(FM), WXST(FM), WAVF(FM), WSPO(AM), W261DG and W257BQ, serving the Charleston, SC radio market, and WVSC(FM), WLHH(FM), WOEZ(FM), W256CB and W293BZ, serving the Hilton Head, Bluffton and Beaufort, SC radio market, from Apex Media Corporation for approximately $23.0 million.
Edward K. Christian, President and Chief Executive Officer of the Company, said, "We are pleased to be acquiring radio stations in the Charleston market and the Hilton Head, Bluffton and Beaufort market.Both of these markets have recently been recognized as two of the South's best communities by Southern Living Magazine.There are both heritage and developmental radio stations included in this acquisition.We look forward to working with the existing staff to continue to serve these growing communities with great radio stations.Saga intends to continue building its business in radio by continuing to identify and acquire radio stations in communities that we believe in."
The attached Selected Supplemental Financial Data tables disclose "actual" and "proforma" information. The "actual" amounts reflect our historical financial results and include the results of operations for stations that we owned. The "proforma" amounts assume all acquisitions and dispositions in 2016 and 2017 occurred as of January 1, 2016.
Saga is a broadcasting company whose business is devoted to acquiring, developing and operating broadcast properties.Saga owns or operates broadcast properties in 26 markets, including 75 FM, 33 AM radio stations and 64 metro signals. For additional information, contact us at (313) 886-7070 or visit our website at www.sagacom.com.
This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995.Words such as "believes," "expects," "anticipates," "guidance" and similar expressions are intended to identify forward-looking statements.Key risks, including risks associated with Saga's ability to effectively integrate the stations it acquires and the impact of federal regulation on Saga's business, are described in the reports Saga periodically files with the U.S. Securities and Exchange Commission, including Item 1A of our Annual Report on Form 10-K.Readers should note that these statements may be impacted by several factors, including national and local economic changes and changes in the radio and television broadcast industry in general, as well as Saga's actual performance.Results may vary from those stated herein and Saga undertakes no obligation to update the information contained here.
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Saga Communications, Inc. | ||||
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Selected Supplemental Financial Data | ||||
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For the Six Months Ended | ||||
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June 30, 2017 | ||||
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(amounts in 000's except per share data) | ||||
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(Unaudited) | ||||
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Actual (1) |
Pro Forma (2) | |||
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Six Months Ended |
Six Months Ended | |||
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June 30, 2017 |
June 30, 2017 | |||
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Consolidated |
||||
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Net operating revenue |
$ 56,416 |
$ 60,641 | ||
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Station operating expense |
42,766 |
46,311 | ||
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Corporate general and administrative |
5,743 |
5,743 | ||
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Other operating expense |
58 |
58 | ||
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Operating income |
7,849 |
8,529 | ||
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Interest expense |
437 |
437 | ||
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Income from continuing operations, before tax |
7,412 |
8,092 | ||
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Income tax expense |
2,990 |
3,268 | ||
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Income from continuing operations, net of tax |
$ 4,422 |
$ 4,824 | ||
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Earnings per share from continuing operations |
||||
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Basic |
$ 0.75 |
$ 0.82 | ||
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Diluted |
$ 0.75 |
$ 0.81 | ||
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(1) |
The disposal of the television stations was reported as discontinued operations at June 30, 2017, however for the purposes of this press release we are only reporting through Income from continuing operations. | |||
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(2) |
The Pro Forma results reflect the disposal of the television stations that was previously reported in discontinued operations and assume the acquisition of the Apex radio stations occurred as of January 1, 2016. | |||
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Saga Communications, Inc. | ||||
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Selected Supplemental Financial Data | ||||
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For the Twelve Months Ended | ||||
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December 31, 2016 | ||||
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(amounts in 000's except per share data) | ||||
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(Unaudited) | ||||
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Actual (1) |
Pro Forma (2) | |||
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Twelve Months Ended |
Twelve Months Ended | |||
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December 31, 2016 |
December 31, 2016 | |||
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Consolidated |
||||
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Net operating revenue |
$ 142,591 |
$ 126,789 | ||
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Station operating expense |
101,542 |
93,805 | ||
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Corporate general and administrative |
10,980 |
10,980 | ||
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Other operating (income) expense, net |
(1,393) |
(1,351) | ||
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Operating income |
31,462 |
23,355 | ||
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Interest expense |
776 |
744 | ||
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Income from continuing operations, before tax |
30,686 |
22,611 | ||
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Income tax expense |
12,500 |
9,212 | ||
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Income from continuing operations, net of tax |
$ 18,186 |
$ 13,399 | ||
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Earnings per share from continuing operations |
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Basic |
$ 3.10 |
$ 2.28 | ||
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Diluted |
$ 3.09 |
$ 2.28 | ||
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(1) |
The disposal of the television stations was reported in continuing operations at December 31, 2016. | |||
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(2) |
The Pro Forma results assume that the disposal of the television stations, the acquisition of the Apex radio stations and WLVQ (FM) as previously reported occurred as of January 1, 2016. | |||
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