GROSSE POINTE FARMS, Mich. – Saga Communications, Inc. (NASDAQ:SGA), a media company focused on radio broadcasting and complementary digital and e-commerce initiatives, declared a quarterly cash dividend of $0.25 per share on Friday. The dividend is payable on December 13, 2024, to shareholders of record as of November 25, 2024, with an aggregate payment of approximately $1.6 million.
The dividend will be funded by cash from the company's balance sheet. This latest distribution continues Saga's practice of returning value to shareholders, with around $135 million in dividends paid out since 2012. The company has expressed its intention to keep issuing regular quarterly cash dividends and may also consider variable dividends, special dividends, and stock buybacks, though these are subject to the board's discretion and will depend on various financial and strategic factors.
Saga Communications operates in 28 markets, owning or managing 82 FM and 32 AM radio stations, along with 79 metro signals. The company's strategy includes a growing emphasis on digital and non-traditional revenue opportunities to complement its core radio business.
The announcement of the dividend is consistent with the company's variable dividend policy, which aims to balance maintaining a strong balance sheet and enhancing shareholder returns with strategic growth through acquisitions. The board's decisions on future dividends and stock buybacks will be guided by Saga's financial health, cash requirements, and other relevant considerations.
This press release includes forward-looking statements, which are subject to risks and uncertainties. These statements, identified by words such as "expects," "intends," and "believes," reflect the company's current expectations and are based on assumptions that may be affected by economic changes and the performance of the radio broadcast industry. Saga undertakes no obligation to update any forward-looking statements.
The information for this report is based on a press release statement from Saga Communications, Inc.
In other recent news, Saga Communications reported a decrease in net revenue by 3.5% to $28.1 million in the third quarter of 2024. The company's net income is at $1.3 million or $0.20 per diluted share. Despite these results, Saga experienced an increase in political revenue and is shifting its strategy towards "blended advertising" that combines radio and digital advertising. However, the company expects a weaker performance in the fourth quarter with anticipated low to mid-single-digit declines.
These recent developments also include strategic termination of a non-profitable digital services partnership, which may impact future revenue comparisons. Operating expenses are projected to rise by 3% to 5% for the year due to investments and inflationary pressures. Saga Communications also paid a quarterly dividend of $0.25 per share, amounting to about $1.6 million.
Despite facing challenges in the automotive and broadcast sectors affecting advertising budgets, the company remains optimistic about its "blended advertising" strategy to enhance local advertising results. The company's resilience and adaptability, particularly in the face of natural disasters and sector-specific challenges, underscore its commitment to maintaining a strong presence in the broadcasting industry.
InvestingPro Insights
Saga Communications' recent dividend declaration aligns with its strong commitment to shareholder returns, as evidenced by InvestingPro data. The company boasts an impressive dividend yield of 30.1%, significantly higher than industry averages. This high yield is complemented by a dividend growth rate of 10.77% over the last twelve months, demonstrating Saga's dedication to increasing shareholder value.
InvestingPro Tips reveal that Saga has maintained dividend payments for 13 consecutive years, underscoring the company's consistent approach to rewarding shareholders. This track record is particularly noteworthy given the challenges faced by the media industry in recent years.
Despite the positive dividend outlook, investors should be aware that Saga's stock has faced headwinds. The company's shares are trading near their 52-week low, with a 38.27% price decline over the past six months. This presents a potential opportunity for value investors, as the stock is currently trading at a low Price / Book multiple of 0.45.
For those considering Saga Communications as an investment, it's worth noting that InvestingPro offers 13 additional tips that could provide further insights into the company's financial health and market position. These additional tips could be valuable for investors looking to make informed decisions in the dynamic media sector.
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