Saga Communications, Inc. Reports 1st Quarter 2010 Results

GROSSE POINTE FARMS, Mich., May 11 /PRNewswire-FirstCall/ -- Saga Communications, Inc. (NYSE Amex: SGA) today reported net operating revenue for the quarter ended March 31, 2010 increased 7.1% to $28.0 million.  Free cash flow increased 140% to $2.3 million for the quarter compared to $939 thousand for the same period in 2009. Station operating expense decreased 5.8% compared to the same period last year to $22.6 million (station operating expense includes depreciation and amortization attributable to the stations).  The Company's net income for the period was $3.3 million ($.78 per fully diluted share) compared to a net loss of $362 thousand (-$0.09 per fully diluted share) for the same period last year.

The Company continues to maintain a solid balance sheet with $16.4 million in cash balances as of March 31, 2010.  As of March 31, 2010, the Company's outstanding bank debt was $116.1 million.  The trailing 12 month leverage ratio calculated as a multiple of EBITDA was 3.7 times.  Netting cash against outstanding debt, the ratio would be 3.2 times.

Capital expenditures in the first quarter of 2010 were $845 thousand compared to $1.1 million for the same period last year.  For the 2009 fiscal year total capital expenditures were $4.0 million.  The Company currently expects to spend approximately $4.5 – $5.0 million for capital expenditures during 2010.  

Saga Communications utilizes certain financial measures that are not calculated in accordance with generally accepted accounting principles (GAAP) to assess its financial performance.  Such non-GAAP measures include free cash flow, trailing 12 month consolidated EBITDA, and leverage ratio. These non-GAAP measures are generally recognized by the broadcasting industry as measures of performance and are used by Saga to assess its financial performance including but not limited to evaluating individual station and market-level performance, evaluating overall operations, as a primary measure for incentive based compensation of executives and other members of management and as a measure of financial position.  Saga's management believes these non-GAAP measures are used by analysts who report on the industry and by investors to provide meaningful comparisons between broadcasting groups, as well as an indicator of their market value.  These measures are not measures of liquidity or of performance in accordance with GAAP, and should be viewed as a supplement to and not as a substitute for the results of operations presented on a GAAP basis including net operating revenue, operating income, and net income.  Reconciliations for all of the non-GAAP financial measures to the most directly comparable GAAP measure are attached in the Selected Supplemental Financial Data table.

Saga Communications, Inc. is a broadcasting company whose business is devoted to acquiring, developing and operating broadcast properties.  The Company owns or operates broadcast properties in 26 markets, including 61 FM and 30 AM radio stations, 3 state radio networks, 2 farm radio networks, 5 television stations and 4 low-power television stations.  For additional information, contact us at (313) 886-7070 or visit our website at www.sagacommunications.com.

Saga's 1st Quarter 2010 conference call will be on Tuesday, May 11, 2010 at 2:00 p.m. EDT.  The dial-in number for domestic calls is (612) 288-0329.  The call can be replayed for 7 days by calling domestically (800) 475-6701 and referring to access code 153594.  

The Company requests that all parties that have a question that they would like to submit to the Company to please email the inquiry by 1:00 p.m. EDT on May 11, 2010 to

[email protected]. The Company will discuss, during the limited period of the conference call, those inquiries it deems of general relevance and interest. Only inquiries made in compliance with the foregoing will be discussed during the call.

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 Communications, Inc. 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.

SOURCE Saga Communications, Inc.

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