Company Reports 1.3% Decrease in Q4 Net Revenue; 2.2% Decline for the Year
Saga Communications reported a 1.3% decline in net revenue, totaling $28.8 million for the fourth quarter ending December 31, 2024, compared to $29.1 million in the same period the previous year. Station operating expenses rose by 4.1% to $24.3 million during Q4. The company’s operating income was $984 thousand, experiencing a significant decrease from $2.8 million in Q4 of 2023. Moreover, station operating income, a non-GAAP financial metric, fell by 17.2% to $5.9 million for the quarter. Total capital expenditures for the quarter amounted to $600,000, down from $1 million in the corresponding period the previous year. Net income stood at $1.3 million for the quarter compared to $2.5 million in Q4 of the previous year, resulting in diluted earnings per share of $0.20 in Q4 of 2024.
On a same-station basis, net revenue for Q4 of 2024 decreased by 3.9% to $28.0 million, while station operating expenses increased by 0.7% to $23.5 million. Operating income saw a substantial decrease of 63.0%, dropping to $1.0 million. Concerns were raised surrounding Saga’s digital transformation initiatives, particularly in light of shareholder Gate City Capital Management’s nomination of four candidates for the Board at the upcoming 2025 Annual Meeting of Shareholders. Gate City expressed worry over Saga’s digital pursuits, citing potential adverse impacts on financial results, operations, liquidity, and share price. Following discussions between representatives of Saga and Gate City, the latter remained concerned about the company’s competency in managing digital transformation efforts. Gate City feared that this focus might divert attention and resources from Saga’s core broadcast business. The strategic plan update prompted by these concerns highlights the ongoing tension between the two entities.
In its year-end report, Saga Communications disclosed a 2.2% decrease in net revenue for 2024, amounting to $110.3 million compared to $112.8 million in 2023. Station operating expenses surged by 4.5% to $94.3 million. Operating income plummeted to $2.4 million in 2024, a significant decline from $11.5 million in the previous year. Similarly, station operating income, a non-GAAP financial metric, experienced a 23.1% drop to $21.1 million. Capital expenditures for 2024 totaled $3.8 million, down from $4.4 million in the corresponding period the previous year. Net income for the year stood at $3.5 million, considerably lower than the $9.5 million reported in 2023. These figures reveal a challenging financial landscape for Saga Communications as it navigates operational difficulties and adjusts its strategic focus to meet evolving market demands.
