New Threads Only:  Add to Google Reader or Homepage
New Threads & Replies:  Add to Google Reader or Homepage
Forums are for serious investors only. GuruFocus Forum Rules.

Forum List » Business News and Headlines
SEC Filings, Earing Reports, Press Releases
New Topic Search
Goto Thread: PreviousNext
Goto: Forum ListMessage ListNew TopicSearchLog In
Saga Communications Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: August 16, 2010 04:26PM

Saga Communications Inc. (SGA) filed Quarterly Report for the period ended 2010-06-30. Saga Communications Inc. has a market cap of $87.5 million; its shares were traded at around $20.55 with a P/E ratio of 8.32 and P/S ratio of 0.72.

SGA is in the portfolios of Columbia Wanger of Columbia Wanger Asset Management, Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

For the three months ended June 30, 2010, consolidated net operating revenue was $32,887,000 compared with $31,637,000 for the three months ended June 30, 2009, an increase of approximately $1,250,000 or 4%. Gross national revenue and gross local revenue increased approximately $562,000 and $541,000, respectively. Gross political revenue increased approximately $290,000. The increase in both gross local and gross national revenue was primarily the result of the gradual recovery of the U.S. economy and advertising spending in general. The increase in gross political revenue was primarily attributable to political advertising on our networks and in two of our radio markets.

Station operating expense was $23,157,000 for the three months ended June 30, 2010, compared with $23,295,000 for the three months ended June 30, 2009, a decrease of $138,000 or less than 1%. The decline in station operating expense was primarily attributable to an increase in sales salaries and commission expense of approximately $224,000 in the second quarter of 2010 from the same quarter of 2009, as a result of improved net operating revenue in the current year, offset by a decrease in depreciation expense of approximately $312,000 primarily as a result of a change in the estimated useful life of television analog equipment, which was fully depreciated in 2009. We also had an increase in advertising and promotion spending of $327,000 but those costs were offset by overall cost reductions in our technical, programming and ratings services.

Operating income for the three months ended June 30, 2010 was $7,833,000 compared to $6,184,000 for the three months ended June 30, 2009, an increase of approximately $1,649,000. The increase was a direct result of the improvement in net operating revenue and reduction in station operating expense, described in detail above, and a $261,000 or 12% decrease in corporate general and administrative charges. The decrease in corporate general and administrative charges was attributable to overall expense reductions.

We generated net income of approximately $3,695,000 ($.87 per share on a fully diluted basis) during the three months ended June 30, 2010, compared with $2,674,000 ($.63 per share on a fully diluted basis) for the three months ended June 30, 2009, an increase of approximately $1,021,000. The increase was the result of an increase in operating income of $1,649,000 offset by increases in other expense and income tax expense of $213,000 and $377,000, respectively. Other expense includes a loss of $248,000 recognized on the disposal of our Doppler radar systems in two of our television markets. Our television stations have changed to alternative weather reporting systems. The increase in income tax expense was directly attributable to operating performance.

For the three months ended June 30, 2010, net operating revenue of the radio segment was $28,661,000 compared with $27,530,000 for the three months ended June 30, 2009, which represents an increase of $1,131,000 or 4%. Gross national revenue and gross local revenue increased approximately $357,000 and $624,000, respectively. Gross political revenue increased approximately $279,000 in the current quarter as compared to the prior year period. The increase in both gross local and gross national revenue was primarily the result of the gradual recovery of the U.S. economy and advertising spending in general. The increase in gross political revenue was primarily attributable to political advertising on our networks and in two of our radio markets.

Station operating expense for the radio segment was $19,827,000 for the three months ended June 30, 2010, compared with $19,694,000 for the three months ended June 30, 2009, an increase of approximately $133,000 or less than 1%. Sales salaries and commission expense increased approximately $214,000 in the second quarter of 2010 from the same quarter of 2009, as a result of improved op

Read the The complete Report



Stocks Discussed: SGA,
Rate this post:




Sorry, only registered users may post in this forum.

Please Login if you have an account or Create a Free Account if you don't




Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial