“We at Saga, I believe, get punished for the sins of our radio brethren,” said Saga Communications CEO Chris Forgy in the company’s Thursday earnings call. In August, Forgy was “giddy” for the company’s future and he had a right to be, with a robust performance for Q3, despite a year-over-year loss.
The company reported Q3 revenue of $29.15 million, slightly down from $29.98 million from the previous year but notably surpassing the predicted $28.9 million by market analysts. Notably, Saga transitioned from a net loss of $104,000 in Q3 2022 to a net income of $2.73 million this year. While this narrowly missed the estimated $0.47 EPS, the results remain impressive when juxtaposed with the earnings reported by peer companies.
Forgy continued, making a point to call out those, “Who are getting delisted and are in perilous financial condition because of their high debt and revenue decline, which causes investors who may not be all that knowledgeable or informed on the sector to make negative generalizations about the entire sector.”
In terms of operating expenses, Saga experienced a modest increase, with station operating expenses rising from $22.3 million to $22.76 million. The company observed a significant decline in its year-over-year corporate general and administrative expenses, which contributed to an operating income of $3.49 million in Q3. This marks a considerable leap from the previous $1.055 million.
A standout detail in Saga’s financials is the absence of any long-term debt.
During the call, Forgy also touched upon some performance highlights. National saw a 1% growth in the quarter and has grown 6.9% year-to-date. Despite challenges faced by competitors in the radio domain, Saga’s achievements seem unparalleled for Q3. Digital segments are up by 34% and continue to grow. Additionally, nontraditional revenue experienced a 7.7% increase in the quarter.
As Forgy fully settles into the CEO seat, he stressed, “Saga continues to be a well-run, successful company in spite of what some think about the sector being a melting iceberg.”
