Summary of Saga Communications, Inc.

Business Overview

• Saga Communications, Inc. is a media company focused primarily on acquiring, developing, and operating broadcast properties.
• The company also explores opportunities in digital media, e-commerce, and non-traditional revenue streams to complement its core radio operations.

Broadcast Properties

• As of February 28, 2025, the company owns:
  • 82 FM radio stations
  • 31 AM radio stations
  • 79 metro signals
• These stations serve 28 markets across the United States.

Corporate Headquarters

• Located at 73 Kercheval Avenue, Grosse Pointe Farms, Michigan 48236.

Number of Employees

• Approximately 601 full-time employees
• Approximately 240 part-time employees
• None of the employees are represented by unions.

Revenue and Income (Fiscal Year Ended December 31, 2024)

• Total net operating revenue: approximately $112.9 million
• Net income: approximately $3.5 million
• Earnings per share (diluted): $0.55

Revenue Breakdown (2024)

• Local advertising: 88% of gross revenue (~$106.3 million)
• National advertising: 12% of gross revenue (~$13.9 million)
• Political advertising: Significantly higher in 2024 due to an increased number of elections (~$3.3 million); expected to decrease in 2025.
• Digital and interactive revenue: Increased in 2024, primarily from streaming and website advertising.

Business Strategy

• Operate top billing radio stations in mid-sized markets (market rank 20-200).
• Focus on local programming and community involvement to build listener loyalty and maximize ratings and advertising revenue.
• Use diverse programming formats: Classic Hits, Country, Classic Country, Adult Contemporary, Oldies, Classic Rock, Rock, News/Talk.
• Expand in digital, e-commerce, and non-traditional revenue channels, leveraging strong local presence and community ties.
• Seek acquisition opportunities in markets with stable economies, often supported by government or major universities.

Regulatory Environment

• Licensed by the FCC, with licenses generally renewed every 8 years.
• Licensed stations' FCC licenses expire between 2027-2030.
• The company complies with FCC ownership and content regulations, with a focus on serving the public interest, political advertising rules, and EAS (Emergency Alert System) requirements.
• Owns or operates stations in various FCC classes (A, B, C, etc.) and markets that are subject to federal regulation and ownership limits.

Competitive Position

• Faces competition from other radio stations and media, including digital streaming, television, newspapers, and billboards.
• Competes to attract audiences and advertising dollars through programming, on-air talent, and community engagement.

Financial Health & Capital

• Long-term debt as of December 31, 2024: approximately $5 million
• Cash and cash equivalents as of December 31, 2024: approximately $18.9 million
• Total assets: approximately $221.7 million
• Shareholders’ equity: approximately $165.9 million
• Total shares of Class A Common Stock outstanding as of March 4, 2025: 6,441,913 shares

Additional Financial and Business Details

• The company announced quarterly dividends totaling $1.60 per share in 2024, with total dividends paid around $10 million.
• The company’s revenue and operations are seasonal, with lower revenue in Q1 and higher in Q2 and Q4.
• Explores growth through acquisitions and digital expansion; recent investments include purchasing stations in Lafayette, Indiana, for $5.3 million in 2024.
• Maintains a stock buy-back program with remaining authorization of approximately $17.7 million as of December 31, 2024.