Saga Communications Inc (SGA) Reports Decrease in Net Revenue for Q3 2023
Net revenue for Q3 2023 decreased by 2.8% to $29.2 million compared to $30.0 million for the same period last year.
Operating income for Q3 2023 was $3.5 million, a significant increase from $1.1 million for the same quarter last year.
Net income for Q3 2023 was $2.7 million, compared to a net loss of $104 thousand for the third quarter last year.
Saga Communications Inc (NASDAQ:SGA) will pay a quarterly dividend of $0.25 per share on November 3, 2023.
On November 2, 2023, Saga Communications Inc (NASDAQ:SGA) released its earnings report for the third quarter of 2023. Despite a decrease in net revenue by 2.8% to $29.2 million from $30.0 million in the same period last year, the company showed significant improvement in operating income and net income. Operating income for the quarter was $3.5 million, a substantial increase from $1.1 million for the same quarter last year. Net income also improved, with the company reporting $2.7 million for the quarter compared to a net loss of $104 thousand for the third quarter last year.
Financial Performance
Station operating expense increased by 2.1% for the quarter to $22.8 million compared to the same period last year. Station operating income, a non-GAAP financial measure, decreased by 14.7% to $7.6 million. Capital expenditures were $760 thousand for the quarter, down from $1.2 million for the same period last year.
For the nine-month period ended September 30, 2023, net revenue decreased by 1.3% to $83.6 million compared to $84.8 million for the same period last year. However, net income for the nine-month period was $7.0 million, an improvement from $4.9 million for the same period last year.
Dividend Announcement
Saga Communications Inc (NASDAQ:SGA) also announced that it will pay a quarterly dividend of $0.25 per share on November 3, 2023, to shareholders of record as of October 11, 2023. The aggregate amount of the quarterly dividend will be approximately $1.5 million. With this payment, Saga will have paid over $111 million in dividends to shareholders since the first special dividend was paid in 2012.
Balance Sheet and Future Expectations
The company's balance sheet reflects $41.7 million in cash and short-term investments as of September 30, 2023, and $41.9 million as of October 30, 2023. The company expects to spend approximately $4.5 $5.0 million for capital expenditures during 2023.
Conference Call Details
Sagas 2023 Third Quarter conference call will be held on Thursday, November 2, 2023, at 11:00 a.m. The dial-in number for the call is (973) 528-0008. Enter conference code 713759. A recording and transcript of the call will be posted to the Companys website as soon as it is available after the call.
Explore the complete 8-K earnings release (here) from Saga Communications Inc for further details.
This article first appeared on GuruFocus.
