Q2 2024 Saga Communications Inc Earnings Call

August 8, 2024

Operator: Good morning everyone, and welcome to the Saga Communications 2nd Quarter 2024 Earnings Release and Conference Call. At this time, all participants have been placed on a listen-only mode.

Operator: ... ... ... ... ... ... ...

Operator: Morning everyone, and welcome to the Saga Communications 2nd Quarter 2024 Earnings Release and Conference Call. At this time, all participants have been placed on a listen-only mode. It is now my pleasure to turn the floor over to your host, Chris Forgy. Sir, the floor is yours.

Operator: Good morning everyone, and welcome to the Saga Communications second quarter 2024 earnings release and conference call. At this time, all participants have been placed on a listen-only mode. It is now my pleasure to turn the floor over to your host, Chris Forgy. Sir, the floor is yours.

Operator: Thanks for holding. We appreciate your time and patience. Please stay on the line, and we'll be back in just a moment. Thanks for watching!

Christopher Forgy: Thank you, Matt, and thank you to everyone who's taken time to join the Saga Q2 earnings call. We appreciate your continued interest, your questions, your support, and your participation in what we believe is the best media company on the planet. You know, it's been an interesting week this week. Monday marked the largest single-day decline in stocks in Japan since 1987.

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Operator: Thank you Matt, and thank you to everyone who has taken the time to join the Saga Q2 earnings call.

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Operator: Hi guys.

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Speaker Change: We appreciate your continued interest, your questions, your support, and your participation in what we believe is the best media company on the planet.

Douglas Goldstein: Douglas Goldstein, CFP®, is the director of Profile Investment Services and the host of the Goldstein on Gelt radio show. He is a licensed financial professional both in the U.S. and Israel. Securities offered through Portfolio Resources Group, Inc., Member FINRA, SIPC, MSRB, NFA, SIFMA. Accounts carried by National Financial Services LLC. Member NYSE®, a Fidelity Investments company. His book Building Wealth in Israel is available in bookstores, on the web, or can be ordered at www.profile-financial.com. Disclaimer! While it is believed to be current and accurate, divergence from the original is to be expected. The original podcast can be heard at https://sites.google.com or at https://sites.google.com.

Christopher Forgy: There's been talk of a recession, and the U.S. recession may continue. Tech stocks are overpriced, there's political uncertainty, and there's a rising risk of a wider conflict in the Middle East. The speed and depth of this recent global sell-off is compounded by both the aforementioned and thinner than usual volumes in the month of August, which traditionally is a quiet trading period. The Fed's delay in lowering interest rates has probably indicated and impacted the media sector more than any of the other previous countervailing forces I mentioned. Interest rates influence two of the main economic indicators in the media sector, housing starts and automotive purchases. Media tends to feel the Excuse me.

Speaker Change: There have been talks of a recession, a U.S. recession, they continue. Tech stocks are overpriced, there's political uncertainty, and there's a rising risk of a wider conflict in the Middle East.

Christopher Forgy: The speed and depth of this recent global sell-off are compounded by both the aforementioned interest rates and volatility, which we will share with you shortly. But make no mistake, what we are experiencing is not a Wall Street thing; it's a Main Street thing. To illustrate, the categories that experienced the largest decline in Saga during Q2 were restaurants, recruitment, automotive, and grocery. Consumers are eating out less, businesses are cutting back on hiring, and, in many cases, laying off employees.

Speaker Change: The speed and depth of this recent global sell-off is compounded by both the aforementioned and a thinner-than-usual volumes in the month of August , which traditionally is a quiet trading month.

Christopher Forgy: And the Fed's delay in lowering interest rates has probably indicated and impacted the media sector more than any of the other previous countervailing forces I mentioned.

Christopher Forgy: Interest rates influence two of the main economic indicators in the media sector, housing starts and automotive purchases.

Speaker Change: Media tends to feel the impact of this going into and coming out of the economic downturn earlier than other businesses. In other words, we saw this coming.

Christopher Forgy: But guess what? We don't control any of it, so don't spend a lot of time with it. We focus on the things we can control, which we will share with you shortly. But make no mistake; what we are experiencing is not a Wall Street thing; it's a Main Street thing. To illustrate, the categories that experienced the largest decline in Saga during Q2 were restaurants, recruitment, automotive, and grocery. Consumers are eating out less, businesses are cutting back on hiring, and, in many cases, laying off employees. Buying fewer cars and going to the grocery store less often.

Speaker Change: But guess what, we don't control any of it, so we don't spend a lot of time with it.

Speaker Change: We focus on the things we can control.

Speaker Change: which we will share with you shortly but making no mistake what we are experiencing is not wall street thing

Christopher Forgy: it's a mainstreet thing

Christopher Forgy: To illustrate, the categories that experienced the largest decline in Saga during Q2 were Restaurants, Recruitment, Automotive, and Grocery, Consumers eating out less, Businesses cutting back on hiring, and in many cases laying off employees.

Christopher Forgy: Buying fewer cars and going to the grocery less often.

Christopher Forgy: Recently, one of Saga's top performing leaders shared with me that after 20 months of pristine performance, his market was now starting to experience some economic downdraft, particularly in one of Saga's core revenue verticals, being local direct. He said it's not the big spending local clients who are holding back; it's the clients who spend that $2,000-$4,000 per month or in that $36,000 per year range who have taken a pause. He said they've assured us they'll be back and will return, so it's not a question of if but when. They will return.

Christopher Forgy: Recently, one of Saga's top performing leaders shared with me that after 20 months of pristine performance, his market was now starting to experience some economic downdraft, particularly in one of Saga's core revenue verticals, being local direct. He said it's not the big spending local clients who are holding back; it's the clients who spend that $2,000 to $4,000 per month or in that $36,000 per year range who have taken a pause. He said they've assured us they'll be back and will return, so it's not a question of if but when. They will return.

Christopher Forgy: Recently one of Saga's top performing leaders shared with me that after 20 months of pristine performance, his market was now starting to experience some economic downdraft, particularly in one of Saga's core revenue verticals being local direct.

Christopher Forgy: He said it's not the big spending local clients who are holding back, it's the clients who spend that $2,000 to $4,000 per month or in that $36,000 per year range who have taken a pause.

Speaker Change: He said they've assured us they'll be back and will return so it's not a question of if but when They will return

Christopher Forgy: That being said, this level of spend makes up the largest percentage of business in our Saga markets. Those customers who invest that $2,000 to $4,000 per month in advertising. So, in an effort to mitigate some of these types of circumstances over the past 20 months, Saga has been preparing to exit these economic headwinds better trained, better resourced, and better equipped to come out on the other side and serve our customers and our community better.

Christopher Forgy: That being said, this level of spend makes up the largest percentage of business in our Saga markets, those customers who invest that $2,000 to $4,000 per month in advertising. This is the transformational change and growth you've heard about and heard us talk about for some time. Q2, as you will hear, is much better.

Christopher Forgy: that being said this level of spend makes up the largest percentage of business in our saga markets those customers who invest that two to four thousand dollars per month and advertising

Christopher Forgy: So in an effort to mitigate some of these types of circumstances over the past 20 months, Saga has been preparing to exit these economic headwinds better trained, better resourced, and better equipped to come out on the other side and super serve our customers and our communities.

Christopher Forgy: This is the transformational change and growth you've heard about and heard us talk about for some time. As you know, Q1 for Saga was a bit of a rough quarter. Q2, as you will hear, is much better.

Christopher Forgy: this is that transformational change in growth you've heard about and heard us talk about for some time

Christopher Forgy: as you know q one for saggga was abit of a rough quarter q two as you will hear is much better

Christopher Forgy: So before Sam gets into the details of Saga's Q2 performance... I just wanted to highlight some of the progress we've made in those areas which we have created and which we control. Our digital or interactive space is up for the second quarter, year over year, $822,000 or 33.4%. eCommerce, which feeds into our local direct silo, is up for the second quarter, year over year, $348,000 or 98.5%, even national, thanks in part to our new national sales strategy and the Caps Alliance Network, which It was up $440,000. It's flat.

Christopher Forgy: So before Sam gets into the details of Saga's Q2 performance, I just wanted to highlight some of the progress we've made in those areas which we have created and which we control. Our digital or interactive space is up for the second quarter, year over year, $822,000 or 33.4%. eCommerce, which feeds into our local direct silo, is up for the second quarter, year over year, $348,000 or 98.5%, even national, thanks in part to our new national sales strategy and the Caps Alliance Network. It was up $440,000.

Christopher Forgy: So before Sam gets into the details of Saga's Q2 performance, I just wanted to highlight some of the progress we've made in those areas in which we have created and we control.

Christopher Forgy: Our digital or interactive space is up for the second quarter, year over year, $822,000 or 33.4%.

Christopher Forgy: E-commerce, which feeds into our local direct silo, is up for the second quarter year over year $348,000 or 98.5%.

Christopher Forgy: Even National, thanks in part to our new National Sales Strategy and the Caps Alliance Network, which was up $440,000. National, as a result, is slightly up year-over-year for the quarter.

Christopher Forgy: It's flat, and the Nationals, as a result, are flat, slightly up year over year for the quarter. Streaming is up for the second quarter, $382,000 or 34%, and our BestEv program, which is a community online voting process that is used to determine the best dentist, the best burger, the best pizza, etc. in a select market. This vertical is up 50% for Q2 and, in just the first six months of 24, has surpassed its entire 20-23 output. And the online news service, which we will discuss in greater detail following Sam's remarks, was up 344,000, or 159%, for the quarter ending June 30, 2024.

Samuel Bush: The Nationals, as a result, are slightly up year over year for the quarter. Streaming is up for the second quarter, $382,000 or 34%, and our Best of program, which is a community online voting process that is used to determine the best dentist, the best burger, the best pizza, etc. in a select market. This vertical is up 50% for Q2 and, in just the first six months of 24, has surpassed its entire 2023 output.

Christopher Forgy: Streaming is up for the second quarter, $382,000 or 34%.

Christopher Forgy: and our Best-of program which is a community online voting process.

Christopher Forgy: that is used to determine the best dentist, the best burger, the best pizza, etc. in a select market. This vertical is up 50% for Q2 and in just the first 6 months of 24 has surpassed its entire 2023 output.

Samuel Bush: In 2023, we did 1.2 million all of 2023, and in 2024, the first six months, we've already done 1.3 million in that space, and the online news service, which we will discuss in greater detail following Sam's remarks, blows up 344,000 or 159% for the quarter ending June 30th, 2024. As an aside, currently, users of the online news service total 1.15 million. There are currently 3.7 million page views, 50,000 email subscribers, 19,000 app subscribers, and 193 follow us on Facebook. And we're just getting started. So that gives you a little bit of the highlights. Sam is going to get into more of the details. So, with Sam, the floor is yours.

Sam: In 2023 we did 1.2 million, all of 2023, and in 2024, the first six months, we've already done 1.3 million in that space.

Christopher Forgy: And the online news service, which we will discuss in greater detail following Sam's remarks, was up 344,000, or 159% for the quarter ending June 30, 2024.

Sam: As an aside, currently users of the online news service total 1.15 million.

Sam: There are currently 3.7 million page views, 50,000 email subscribers, 19,000 app subscribers, and 193 follow the sites on Facebook. And we are just getting started.

Christopher Forgy: So that gives you a little bit of highlights. Sam is going to get into more of the details. So Sam, the floor is yours.

Unnamed: Samuel Bush, Christopher Forgy, Saga Commns Samuel Bush, Christopher Forgy

Samuel Bush: Thank you, Chris. This call will contain forward-looking statements about our future performance and results of operations that involve risks and uncertainties that are described in the Risk Factors section of our most recent Form 10-K. This call will also include a discussion of certain non-GAAP financial measures. Reconciliation for all the non-GAAP financial measures to the most directly comparable GAAP measure is attached to the selected financial data table. For the quarter ended June 30th, 2024, net revenue decreased 1.5% to $28.7 million, compared to $29.2 million last year. Political events did not have a major impact.

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Sam: Thank you Chris

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Speaker Change: This call will contain forward looking statements about our future performance and results of operations that involve risks and uncertainties that are described in the risk factors section of our most recent Form 10-K .

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Speaker Change: This call will also contain a discussion of certain non-GAAP financial measures. Reconciliation for all the non-GAAP financial measures to the most directly comparable GAAP measure are attached in the selected financial data tables.

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Speaker Change: For the quarter ended June 30, 2024, net revenue decreased 1.5% to $28.7 million compared to $29.2 million last year.

Christopher Forgy: Political did not have a major impact. As for the quarter, we had $288,000 in gross political revenue this year compared to $108,000 for the same period last year. Station operating expense increased 5.1% to $23.5 million for the three-month period. Also, you should note that we recorded $1.1 million in the second quarter in other income, which was cash received for the redemption of stock that we owned in BMI when the music licensing organization was acquired. With the purchase of the five stations in Lafayette, Indiana on May 31st, 2024, we are now back to reporting on a same station basis.

Samuel Bush: As for the quarter, we had $288,000 in gross political revenue this year compared to $108,000 for the same period last year. Station operating expense increased 5.1% to $23.5 million for the three-month period. Station Operating Income, a non-GAAP financial measure, for the quarter was $6.4 million, and net income was $2.5 million, or $0.40 per fully diluted share. Also, you should note that we recorded $1.1 million in the second quarter in other income, which was cash received for the redemption of stock that we owned in BMI when the music licensing organization was acquired.

Christopher Forgy: Political did not have a major impact. As for the quarter, we had $288,000 in gross political revenue this year compared to $108,000 for the same period last year.

Christopher Forgy: Station operating expense increased 5.1% to $23.5 million for the three-month period.

Christopher Forgy: Station operating income, a non-GAAP financial measure, for the quarter was $6.4 million and net income was $2.5 million or $0.40 per fully diluted share.

Christopher Forgy: Also, you should note that we recorded $1.1 million in the second quarter in other income, which was cash received for the redemption of stock that we owned in BMI when the music licensing organization was acquired.

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Operator: For More Information, Visit www.cesurbounjobs.com CBC In the end, Samuel Bush, Christopher Forgy, Saga Commns

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Samuel Bush: With the purchase of the five stations in Lafayette, Indiana on May 31st, 2024, we are now back to reporting on a same station basis. I'd be remiss if I didn't add Boiler Up to my friends in Lafayette.

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Christopher Forgy: With the purchase of the five stations in Lafayette, Indiana on May 31, 2024, we are now back to reporting on a same station basis.

Christopher Forgy: Hammer down. There we go Chris, you're on it.

Chris: I'd be remiss if I didn't add boiler up to my friends in Lafayette there. Hammer down. There we go Chris, you're on it. Keep in mind that same station is a minor adjustment for this quarter and year-to-date as we only owned Lafayette for one month during the second quarter.

Samuel Bush: Keep in mind that Same Station is a minor adjustment for this quarter and year to date as we only owned Lafayette for one month during the second quarter. That said, for the second quarter this year, on a Same Station basis, net revenue decreased 2.4% to $28.5 million, and station operating expense increased 4% to $23.3 million. For the six-month period ended June 30, 2024, net revenue decreased 2% to $53.4 million, compared to $54.5 million last year. Gross political revenue was $598,000 for the period, compared to $301,000 for the same period last year.

Chris Forgy: Good morning, everyone, and welcome to the Saga Communications second quarter 2024 earnings release and conference call. At this time, all participants have been placed on a listen-only mode. It is now my pleasure to turn the floor over to your host, Chris Forgy. Sir, the floor is yours.

Chris Forgy: Thank you, Matt. And thank you to everyone who's taken time to join the Saga Q2 earnings call. We appreciate your continued interest, your questions, your support, and your participation in what we believe is the best media company on the planet. You know, it's been an interesting week this week. Monday marked the largest single-day decline in stocks in Japan since 1987.

Chris Forgy: There's been talk of a recession, and the U.S. recession may continue. Tech stocks are overpriced, there's political uncertainty, and there's a rising risk of a wider conflict in the Middle East. The speed and depth of this recent global sell-off is compounded by both the aforementioned and thinner than usual volumes in the month of August, which traditionally is a quiet trading period. The Fed's delay in lowering interest rates has probably indicated and impacted the media sector more than any of the other previous countervailing forces I mentioned. Interest rates influence two of the main economic indicators in the media sector, housing starts and automotive purchases. Media tends to feel the But guess what?

Chris Forgy: We don't control any of it, so we don't spend a lot of time with it. Instead, we focus on the things we can control, which we will share with you shortly. But make no mistake; what we are experiencing is not a Wall Street thing; it's a Main Street thing. To illustrate, the categories that experienced the largest decline in Saga during Q2 were restaurants, recruitment, automotive, and grocery. Consumers eating out less, businesses cutting back on hiring, and in many cases, laying off employees; buying fewer cars, and going to the grocery store less often.

Chris Forgy: Recently, one of Saga's top performing leaders shared with me that after 20 months of pristine performance, his market was now starting to experience some economic downdraft, particularly in one of Saga's core revenue verticals, being local direct. He said it's not the big spending local clients who are holding back; it's the clients who spend that $2,000-$4,000 per month or in that $36,000 per year range who have taken a pause. He said they've assured us they'll be back and will return, so it's not a question of if but when. They will return.

Chris Forgy: That being said, this level of spend makes up the largest percentage of business in our Saga markets, those customers who invest that $2,000 to $4,000 per month in advertising. So, in an effort to mitigate some of these types of circumstances over the past 20 months, Saga has been preparing to exit these economic headwinds better trained, better resourced, and better equipped to come out on the other side and serve our customers and our community better.

Chris Forgy: This is the transformational change and growth you've heard about and heard us talk about for some time. As you know, Q1 for Saga was a bit of a rough quarter. Q2, as you will hear, is much better.

Chris Forgy: So, before Sam gets into the details of Saga's Q2 performance... I just wanted to highlight some of the progress we've made in those areas which we have created and which we control. Our digital or interactive space is up for the second quarter, year over year, $822,000 or 33.4%. eCommerce, which feeds into our local direct silo, is up for the second quarter, year over year, $348,000 or 98.5%, even national, thanks in part to our new national sales strategy and the Caps Alliance Network, which It was up $440,000. It's flat.

Chris Forgy: The Nationals, as a result, are slightly up year over year for the quarter. Streaming is up for the second quarter, $382,000 or 34%, and our Best of program, which is a community online voting process that is used to determine the best dentist, the best burger, the best pizza, etc., in a select market.

Christopher Forgy: that said for the second quarter of this year on a same station basis net revenue decreased two point four percent to twenty eight point five million and station operating expense increased four percent to twenty three point three million

Chris Forgy: This vertical is up 50% for Q2 and, in just the first six months of 24, it has surpassed its entire 2023 out. In 2023, we did 1.2 million, all of 2023, and in 2024, the first six months, we've already done 1.3 million in that space. And the online news service, which we will discuss in greater detail following Sam's remarks, was up 344,000, or 159%, for the quarter ending June 30, 2024. As an aside, currently, users of the online news service total 1.15 million.

Chris Forgy: There are currently 3.7 million page views, 50,000 email subscribers, 19,000 app subscribers, and 193 follow us on Facebook. And we're just getting started. So that gives you a little bit of the highlights. Sam is going to get into more of the details. So with Sam, the floor is yours.

Christopher Forgy: For the six-month period ended June 30, 2024, net revenue decreased 2% to $53.4 million, compared to $54.5 million last year. Gross political revenue was $598,000 for the period, compared to $301,000 for the same period last year. Station operating income, a non-GAAP financial measure again, for the six months was $9.2 million, and net income was $900,000, or $0.15 per fully diluted share. Keep in mind that as you look at the net income for the six-month period, we reported a net loss of $1.6 million in the first quarter, which included a $971,000 other operating expense, which was a non-cash write-off on the sale and abandonment of non-productive broadcast assets in two markets.

Samuel Bush: Political did not have a major impact, as for the quarter, we had $288,000 in gross political revenue this year compared to $108,000 for the same period last year. Station operating expense increased 5.1% to $23.5 million for the three-month period. Station operating income, a non-GAAP financial measure, for the quarter was $6.4 million, and net income was $2.5 million, or $0.40 per fully diluted share. Also, you should note that we recorded $1.1 million in the second quarter in other income, which was cash received for the redemption of stock that we owned in BMI when the music licensing organization was acquired.

Christopher Forgy: For the six-month period ended June 30th, 2024, net revenue decreased 2% to $53.4 million compared to $54.5 million last year. Gross political revenue was $598,000 for the period compared to $301,000 for the same period last year.

Samuel Bush: Station operating expense increased 5.5% to $46.5 million for the six-month period. Station operating income, a non-GAAP financial measure again, for the six months was $9.2 million, and net income was $900,000, or $0.15 per fully diluted share. Keep in mind that as you look at the net income for the six-month period, we reported a net loss of $1.6 million in the first quarter, which included a $971,000 other operating expense, which was a non-cash write-off on the sale and abandonment of non-productive broadcast assets in two markets.

Christopher Forgy: Station operating expense increased 5.5% to $46.5 million for the six-month period.

Christopher Forgy: Station operating income, a non-GAAP financial measure again, for the six months was $9.2 million and net income was $900,000 or $0.15 per fully diluted share.

Samuel Bush: Additionally, the net income for the six-month period reflects the $1.1 million in other income that I talked about in my second quarter performance comments just a minute ago. For the six-month period this year, on a same station basis, net revenue decreased 2.5% to $53.1 million, and station operating expense increased 4.9% to $46.3 million. On a historical basis, pay increases and related payroll taxes amounted to an estimated $599,000, or approximately 53% of the increase in the second quarter's station operating expenses. And $1 million, or approximately 43% of the increase for the six-month period.

Christopher Forgy: Keep in mind that as you look at the net income for the six-month period that we reported a net loss of $1.6 million in the first quarter, which included a $971,000 other operating expense, which was a non-cash write-off on the sale and abandonment of non-productive broadcast assets, licenses,

Christopher Forgy: in two markets. Additionally, the net income for the six-month period reflects the 1.1 million in other income that I talked about in my second quarter performance comments just a minute ago.

Christopher Forgy: For the six month period this year, on a same station basis, net revenue decreased 2.5% to $53.1 million, and station operating expense increased 4.9% to $46.3 million. Both these periods include approximately $200,000 in severance payments for management changes we made in a couple of our markets as we continue to adapt to changing economic conditions, as well as a need to generate revenue from an increasingly diverse range of products. June did begin to show more of a normalization relative to expense growth.

Christopher Forgy: For the 6 month period this year on a same station basis, net revenue decreased 2.5% to $53.1 million and station operating expense increased 4.9% to $46.3 million.

Christopher Forgy: On a historical basis, pay increases and related payroll taxes amounted to an estimated $599,000, or approximately 53% of the increase in the second quarter's station operating expense, and $1 million, or approximately 43% of the increase for the six-month period.

Samuel Bush: Both these periods include approximately $200,000 in severance payments for management changes we made in a couple of our markets as we continue to adapt to changing economic conditions, as well as a need to generate revenue from an increasingly diverse range of products. June did begin to show more of a normalization relative to expense growth.

Christopher Forgy: Both these periods include approximately $200,000 in severance payments for management changes we made in a couple of our markets as we continue to adapt to changing economic conditions, as well as a need to generate revenue from an increasingly diverse range of products.

Christopher Forgy: June did begin to show more of a normalization relative to experience growth.

Samuel Bush: We also had other smaller, but still meaningful increases in our station operating expenses, including increases in health insurance, sales surveys, bad debt, and interact. For a bit more color, overall, interactive expenses were up $285,000 for the quarter and $485,000 for the six-month period, which was in conjunction with the overall increase in gross interactive revenue for the quarter of $822,000, which Chris already mentioned, and $1.4 million year-to-date.

Speaker Change: we also had other smaller but still meaningful increases in our station operating expenses including increases in health insurance sales surveysed bad debt interactive

Christopher Forgy: For a bit more color overall, interactive expenses were up $285,000 for the quarter and $485,000 for the six month period, which was in conjunction with the overall increase in gross interactive revenue for the quarter of $822,000, which Chris already mentioned, and $1.4 million year to date.

Samuel Bush: This continues to include some of the startup expenses for our online news product. Capital expenditures for the quarter ended June 30, 2024 were $1.5 million, compared to $1.3 million for the same period last year. For the six-month period ending June 30, 2024, capital expenditures were $2.6 million, which was approximately equal to the same period last year. 285,000 of the capital expenditures reported for both the quarter and the six-month period were related to our acquisition of the Lafayette Radio property.

Christopher Forgy: This continues to include some of the startup expense for our online news product.

Christopher Forgy: Capital expenditures for the quarter ended June 30, 2024 were $1.5 million, compared to $1.3 million for the same period last year. For the six month period ended June 30, 2024, capital expenditures were $2.6 million, which was approximately equal to the same period last year.

Christopher Forgy: 285,000 of the capital expenditures reported for both the quarter and the six-month period were related to our acquisition of the Lafayette Radio property. We currently expect to spend between $5 and $5.5 million on capital expenditures in 2020. We continue to plan on utilizing our financial strength to strategically invest in our operations, both at a market and corporate level, as we work to grow specific revenue types, including local, national, interactive, e-commerce, and online news products. For the first time in a while, we have debt outstanding as we drew down $5 million on our $50 million revolving credit facility as part of closing the acquisition of Lafayette, Indiana.

Christopher Forgy: 285,000 of the capital expenditures reported for both the quarter and the six-month period were related to our acquisition of the Lafayette radial properties.

Samuel Bush: We currently expect to spend between $5 and $5.5 million on capital expenditures in 2020. We continue to plan on utilizing our financial strength to strategically invest in our operations, both at a market and corporate level, as we work to grow specific revenue types, including local, national, interactive, e-commerce, online news products, and the internet. The company's balance sheet reflects $24.1 million in cash and short-term investments as of June 30, 2024, and $26.2 million as of August 5, 2024. For the first time in a while, we have debt outstanding as we drew down $5 million on our $50 million revolving credit facility as part of closing the acquisition of Lafayette, Indiana.

Christopher Forgy: We currently expect to spend between $5 and $5.5 million for capital expenditures in 2024.

Christopher Forgy: We continue to plan on utilizing our financial strength to strategically invest in our operations, both at a market and corporate level, as we work to grow specific revenue types, including local, national, interactive, e-commerce, online news products, and NTR.

Christopher Forgy: The company's balance sheet reflects $24.1 million in cash and short-term investments as of June 30, 2024, and $26.2 million as of August 5, 2024.

Christopher Forgy: For the first time in a while, we have debt outstanding as we drew down $5 million on our $50 million revolving credit facility as part of closing the acquisition of Lafayette, Indiana.

Christopher Forgy: This was done as part of our overall capital allocation plan. Political activity continues to be very slow compared to the last presidential election in 2020. During the last presidential election in 2020, we recorded approximately $1 million in the first quarter, $289,000 in the second quarter, $1.8 million in the third quarter, and $3.8 million for the fourth quarter in gross political revenue. We are expecting political spending to pick up this year, but we haven't seen any significant increases yet.

Samuel Bush: This was done as part of our overall capital allocation. We paid a quarterly dividend of $0.25 per share for approximately $1.6 million on June 28, 2024. We also paid our first variable dividend of $0.60 per share for an approximate total of $3.8 million. I'm talking about this because it was paid on April 5, 2024, the first week of the quarter. To date, we have paid over $132 million in dividends to our shareholders since 2012.

Christopher Forgy: This was done as part of our overall capital allocation plans.

Christopher Forgy: We paid a quarterly dividend of $0.25 per share for approximately $1.6 million on June 28, 2024. We also paid our first variable dividend of $0.60 per share for an approximate total of $3.8 million, and I'm talking about this because it was paid on April 5, 2024, the first week of the quarter.

Christopher Forgy: To date, we have paid over $132 million in dividends to our shareholders since 2012.

Samuel Bush: Pacing for the third quarter remains soft, and we are currently pacing down mid-single digits. We do expect this to improve, as we reported approximately the same pacing results for this quarter when we reported our first quarter earnings, and based on the final results reported today, our revenue results were better than the initial projection. Political activity continues to be very slow compared to the last presidential election in 2020.

Christopher Forgy: Pacing for the third quarter remains soft and we are currently pacing down mid single digits. We do expect this to improve as we reported approximately the same pacing results for this quarter when we reported our first quarter earnings and based on the final results reported today, our revenue results were better than the initial projection.

Christopher Forgy: Political continues to be very slow compared to the last presidential election in 2020.

Samuel Bush: During the last presidential election in 2020, we recorded approximately $1 million in the first quarter, $289,000 in the second quarter, $1.8 million in the third quarter, and $3.8 million for the fourth quarter in gross political revenue. In 2023, we recorded $193,000 in the first quarter, $106,000 in the second quarter, $234,000 for the third quarter, and $409,000 for the fourth quarter, again in gross political revenue. As I previously indicated, we have recorded 598,000 in politics through the end of the second quarter and currently have approximately 394,000 pending in the third and fourth quarters.

Christopher Forgy: During the last presidential election in 2020, we recorded approximately $1 million in the first quarter, $289,000 in the second quarter, $1.8 million in the third quarter, and $3.8 million for the fourth quarter in gross political revenue.

Christopher Forgy: In 2023, we recorded $193,000 in the first quarter, $106,000 in the second quarter, $234,000 for the third quarter, and $409,000 for the fourth quarter, again in gross political revenue.

Christopher Forgy: As I previously indicated, we have recorded 598,000 in political through the end of the second quarter, and currently have approximately 394,000 pending in the third and fourth quarters.

Samuel Bush: We are expecting political to pick up this year, but we haven't seen any significant increases yet. Based on our current projections, we currently expect that our station operating expense on the same station basis will increase by approximately 4 to 5 percent for the year as compared to 2020. In addition to the inflationary environment, this is significantly driven by our investments in our staff, sales training, and ongoing interactive development, including our online news products.

Christopher Forgy: We are expecting political to pick up this year, but we haven't seen any significant increases yet.

Christopher Forgy: Based on our current projections, we currently expect that our station operating expense on the same station basis will increase by approximately 4-5% for the year as compared to 2023. In addition to the inflationary environment, this is significantly driven by our investments in our staff, sales training, ongoing interactive development, including our online news product.

Christopher Forgy: In addition to the inflationary environment, this is significantly driven by our investments in our staff, sales training, and ongoing interactive development, including our online news products. Chris, with that, I will turn it back over to you. Thank you.

Samuel Bush: We anticipate that annual Corporate General and Administrative expenses will be between $12 and $12.5 million for 2024. Our tax rate is to be 26% to 29% with a deferred tax of 3% to 6% going forward. And Chris, with that, I will turn it back over to you.

Speaker Change: We anticipate that Annual Corporate General and Administrative Expense will be between $12 and $12.5 million for 2024. Our tax rate is to be 26% to 29% with a deferred tax of 3% to 6% going forward. And Chris, with that I will turn it back over to you.

Chris Forgy: Hammer down. There we go, Chris. You're on it.

Samuel Bush: Keep in mind that same station is a minor adjustment for this quarter and year-to-date as we only owned Lafayette for one month during the second quarter. That said, for the second quarter this year, on a same station basis, net revenue decreased 2.4% to $28.5 million, and station operating expense increased 4% to $23.3 million. For the six-month period ended June 30, 2024, net revenue decreased 2% to $53.4 million, compared to $54.5 million last year. Gross political revenue was $598,000 for the period, compared to $301,000 for the same period last year.

Christopher Forgy: Thank you, Sam. As I mentioned earlier, I wanted to spend some time on one of Saga's radio programs and then some transformational growth strategy. As many of you have heard on previous earnings calls and perhaps more recently, have read in some of the publications like Radio Inc. or Jacob's Blog, Editor and Publisher, and Barrett Media, Saga is moving full steam ahead with an online noose and local noose and community sites in 18, soon to be 19, total markets once our newest acquisition, Lafayette, Indiana, is onboarded.

Chris: Thank you, Sam. As I mentioned earlier, I wanted to spend some time on one of Saga's

Samuel Bush: Station operating expense increased 5.5% to $46.5 million for the six-month period. Station operating income, a non-GAAP financial measure again, for the six months was $9.2 million, and net income was $900,000 or $0.15 per fully diluted share. Keep in mind that as you look at the net income for the six-month period, we reported a net loss of $1.6 million in the first quarter, which included a $971,000 other operating expense, which was a non-cash write-off on the sale and abandonment of non-productive broadcast assets in two markets.

Chris: Radio, and then some.

Chris: transformational growth strategies.

Samuel Bush: We also had other smaller but still meaningful increases in our station operating expenses, including increases in health insurance, sales surveys, bad debt, and interact. For a bit more color, overall, interactive expenses were up $285,000 for the quarter and $485,000 for the six-month period, which was in conjunction with the overall increase in gross interactive revenue for the quarter of $822,000, which Chris already mentioned, and $1.4 million year-to-date. This continues to include some of the startup expenses for our online news product.

Samuel Bush: Capital expenditures for the quarter ended June 30, 2024 were $1.5 million compared to $1.3 million for the same period last year. For the six-month period ending June 30, 2024, capital expenditures were $2.6 million, which was approximately equal to the same period last year. 285,000 of the capital expenditures reported for both the quarter and the six-month period were related to our acquisition of the Lafayette Radio Project. We currently expect to spend between $5 and $5.5 million on capital expenditures in 2020.

Chris: As many of you have heard on previous Earnings Calls, and perhaps more recently, have read in some of the publications like Radio Inc. or Jacob's Blog.

Chris: editor and publisher in Barrett Media. Saga is moving full steam ahead with an online news and local news and community sites. In 18, soon to be 19 total markets once our newest acquisition Lafayette, Indiana is on boarded.

Samuel Bush: We continue to plan on utilizing our financial strength to strategically invest in our operations, both at a market and corporate level, as we work to grow specific revenue types, including local, national, interactive, e-commerce, online news products, and internet. The company's balance sheet reflects $24.1 million in cash and short-term investments as of June 30, 2024, and $26.2 million as of August 5, 2024. For the first time in a while, we have debt outstanding as we drew down $5 million on our $50 million revolving credit facility as part of closing the acquisition of Lafayette, Indiana.

Samuel Bush: This was done as part of our overall capital allocation. We paid a quarterly dividend of $0.25 per share for approximately $1.6 million on June 28, 2024. We also paid our first variable dividend of $0.60 per share for an approximate total of $3.8 million, and I'm talking about this because it was paid on April 5, 2024, the first week of the quarter. To date, we have paid over $132 million in dividends to our shareholders since 2012.

Chris Forgy: During the last presidential election in 2020, we recorded approximately $1 million in the first quarter, $289,000 in the second quarter, $1.8 million in the third quarter, and $3.8 million for the fourth quarter in gross political revenue. In 2023, we recorded $193,000 in the first quarter, $106,000 in the second quarter, $234,000 for the third quarter, and $409,000 for the fourth quarter, again in gross political revenue. As I previously indicated, we have recorded 598,000 in politics through the end of the second quarter and currently have approximately 394,000 pending in the third and fourth quarters.

Chris Forgy: We are expecting political to pick up this year, but we haven't seen any significant increases yet. Based on our current projections, we currently expect that our station operating expense on the same station basis will increase by approximately 4 to 5 percent for the year as compared to 2020. In addition to the inflationary environment, this is significantly driven by our investments in our staff, sales training, and ongoing interactive development, including our online news products.

Chris Forgy: We anticipate that Annual Corporate General and Administrative Expense will be between $12 and $12.5 million for 2024. Our tax rate is to be 26% to 29% with a deferred tax of 3% to 6% going forward, and Chris, with that, I will turn it back over to you.

Chris Forgy: Thank you, Sam. As I mentioned earlier, I wanted to spend some time on one of Saga's radio programs and then some transformational growth strategy. As many of you have heard on previous Earnings Calls and perhaps more recently, have read in some of the publications like Radio Inc. or Jacob's Blog, Editor and Publisher, and Barrett Media, Saga is moving full steam ahead with online news and local news and community sites in 18, soon to be 19, total markets once our newest acquisition, Lafayette, Indiana, is onboarded.

Chris Forgy: This product, as I mentioned before, was the brainchild of Saga's former Clarksville, Tennessee general manager, Katie Wheelis, who is now our Director of Innovative Online News Services. Katie will tell you the reason for the development of this original site 12 plus years ago was based on the fact that the 101st Airborne out of Fort Campbell, Kentucky, was being deployed to Iraq, and the servicemen and women needed a way to stay close and connected to the local community while they were away on deployment. The solution was what came to be known as Clarksville Now.

Christopher Forgy: This product, as I mentioned before, was the brainchild of Saga's former Clarksville, Tennessee general manager, Katie Wheelis, who is now our Director of Innovative Online News Services. Katie will tell you the reason for the development of this original site 12 plus years ago was based on the fact that the 101st Airborne out of Fort Campbell, Kentucky, was being deployed to Iraq, and the servicemen and women needed a way to stay close and connected to the local community while they were away on deployment. The solution was what came to be known as Clarksville Now.

Speaker Change: This product, as I mentioned before, was the brainchild of Saga's former Clarksville, Tennessee general manager, Katie Wheelis, who is now our Director of Innovative Online News Services.

Chris: Katie will tell you the reason for the development of this original site 12 plus years ago was based on the fact that the 101st Airborne out of Fort Campbell, Kentucky was being deployed to Iraq and the servicemen and women needed a way to stay close and connected to the local community while they were away on deployment.

Speaker Change: The solution was what came to be known as Clarksville Now.

Chris Forgy: No op-eds, no deep dive investigative reporting. We focus on practical community news, like city hall, local sports teams, and news from the police and fire department. At the same time, the unfortunate decline of the newspaper industry created a void for local unbiased news sources.

Christopher Forgy: No op-eds, no deep dive investigative reporting. We focus on practical community news, like city hall, local sports teams, and news from the police and fire department. At the same time, the unfortunate decline of the newspaper industry created a void for local unbiased news sources.

Christopher Forgy: no opeds no deep dve investigated reporting we focus on practical community news city hall local sports teams and news from the police and fire departments

Speaker Change: At the same time, the unfortunate decline of the newspaper industry created a void for local, unbiased news sources.

Chris Forgy: One of Saga's company-wide, unrelenting non-negotiables is to be hyper-local in the communities in which we serve. In fact, some of the members of our market leadership team have served on city council, the local school board, or even ran for mayor of the city where the radio stations were located. I was asked recently in an interview by Barrett Media what the number one thing people want from local media is. My answer was simple.

Christopher Forgy: One of Saga's company-wide, unrelenting non-negotiables is to be hyper-local in the communities in which we serve. In fact, some of the members of our market leadership team have served on city council, the local school board, or even ran for mayor of the city where the radio stations were located. I was asked recently in an interview by Barrett Media what the number one thing people want from local media is. My answer was simple. It was connectivity that was the problem.

Speaker Change: One of Saga's company-wide unrelenting non-negotiables is to be hyper-local in the communities in which we serve. In fact, some of the members of our market leadership team have served on city council, the local school board, or even ran for mayor of the city where the radio stations were located.

Christopher Forgy: I was asked recently in an interview by Barrett Media what the number one thing people want from local media is. My answer was simple. It was connectivity.

Christopher Forgy: I was asked recently in an interview by Barrett Media, what is the number one thing people want from local media? My answer was simple, it was connectivity.

Chris Forgy: It was connectivity. That is why the local aspect of what we do is so critical. People want to feel connected to something special, and this is consistent with all the data we are seeing in the tech service. Saga operates in markets we can impact, make a difference in, and connect to, and those markets make it more feasible to create these hyper-local and hyper-impactful news versions. We can also create meaningful relationships with civic, business, and community leaders. These are all conduits that foster local ties.

Christopher Forgy: That is why the local aspect of what we do is so critical. People want to feel connected to something special, and this is consistent with all the data we are seeing in the tech service. Saga operates in markets we can impact, make a difference in, and connect with, and those markets make it more feasible to create these hyper-local and hyper-impactful news versions. We can also create meaningful relationships with civic, business, and community leaders.

Christopher Forgy: That is why the local aspect of what we do is so critical. People want to feel connected to something special.

Christopher Forgy: And this is consistent with all the data we are seeing in the tech surveys. Saga operates in markets we can impact, make a difference in, connect in, and those markets make it more feasible to create these hyper-local and hyper-impactful news verticals.

Christopher Forgy: We can also create meaningful relationships with civic, business, and community leaders.

Christopher Forgy: These are all conduits that foster local ties, not to mention the advertising opportunities created by an online news service and community site. Recently, Jacobs Media conducted another survey that found 7 out of 10 Radio Corps fans read newsletters of this type each week. We are tapping into a market and a medium that is consumed more than podcasts. And it is wanted and needed by local community leadership. We engaged these local community leaders to talk about our site.

Chris Forgy: Not to mention the advertising opportunities created with an online news service and community site. Recently, Jacobs Media conducted another survey that found 7 out of 10 Radio Corps fans read newsletters of this type each week. We are tapping into a market and a medium that is consumed more than podcasts are. And it is wanted and needed by local community leadership. We engaged these local community leaders to talk about our site.

Christopher Forgy: Not to mention the advertising opportunities created with an online news service and community site because there is no other trusted news source available out there. Why do I share all this with you? because this is one, just one, important part of the transformational change and growth Saga Communications has been experiencing over the past 20 months. Our expense increases, albeit planned. We forecasted them long ago, and the expenses are now beginning to level off and stabilize, and now we are growing better than any other media out there.

Christopher Forgy: These are all conduits that foster local ties. Not to mention the advertising opportunities created with an online news service and community site.

Speaker Change: Recently, Jacobs Media conducted another survey that found 7 out of 10 radio core fans read newsletters of this type each week. We are tapping into a market and a medium that is consumed more than podcasts are.

Christopher Forgy: And it is a wanted and needed by local community leadership. We engage these local community leaders to talk about our sites.

Chris Forgy: We meet with the mayor, the city council, the chief of police, and others to inform them of our local market mission and to forge a connected community relationship with them. In fact, we frequently hear from local leadership that this is how they connect. They use their online news and community sites to communicate with the community. They tell us it's how we get our local news out because there is no other trusted news source available out there.

Christopher Forgy: We meet with the mayor, the city council, the chief of police, and others to inform them of our local market mission and to forge a connected community relationship with them. In fact, we frequently hear from local leadership that this is how they connect. They use their online news and community sites to communicate with the community. They tell us it's how we get our local news out because there is no other trusted news source available out there.

Speaker Change: We meet with the mayor, the city council, the chief of police and others to inform them of our local market mission and to forge a connected community relationship with them. In fact, we frequently hear from local leadership that this is how they connect. They use their online news and community sites to communicate with the community.

Speaker Change: they tell us it's how we get our local news out

Christopher Forgy: because there is no other trusted news source available out there.

Christopher Forgy: Why do I share all this with you? Because this is one, just one, important part of the transformational change and growth Saga Communications has been experiencing over the past 20 months. And, as I've said before, transformational change takes time. Unruly Commitment and Resources. Our expense increases, albeit planned, are not for everything. We forecasted them long ago.

Chris Forgy: Why do I share all this with you? Because this is one, just one, important part of the transformational change and growth Saga Communications has been experiencing over the past 20 months. And as I've said before, transformational change takes time. Unrelenting Commitment and Resources. Our expense increases, albeit planned, are not a forever thing. We forecasted them long ago.

Christopher Forgy: And as I've said before, transformational change takes time.

Christopher Forgy: Unrelenting Commitment, and Resources.

Christopher Forgy: Our expense increases, albeit planned, are not a forever thing.

Chris Forgy: The expenses are now beginning to level off and stabilize, and now we grow. By the way, if you've ever had a doubt that feeling and being connected is the number one attribute consumers crave from media, and that radio and then some delivers on that need better than any other media out there.

Christopher Forgy: The expenses are now beginning to level off and stabilize, and now we grow. By the way, if you've ever had a doubt that feeling and being connected is the number one attribute consumers crave from media, and that radio and then some delivers on that need better than any other media out there.

Christopher Forgy: we forecasted them long ago the expenses are now beginning to level off and stabilize and now we grow

Christopher Forgy: By the way, if you've ever had a doubt that feeling and being connected is the number one attribute consumers crave from media.

Christopher Forgy: and that radio, and then some, delivers on that need.

Christopher Forgy: Allow me to read an email exchange between one of our on-air personalities and a loyal connected listener. But you may not notice from the outside right away that I can be charming, funny, put-together, a soccer mom, a regular woman. My struggles have intensified lately to the point I was thinking the worst. I knew I was at rock bottom. And a little after 10, I started detox. These people were angels.

Chris Forgy: Allow me to read an email exchange between one of our on-air personalities and a loyal, connected listener. This letter or this correspondence really speaks for itself and really needs no further introduction. So thank you for indulging me with this. Hi. You might recognize my name as I am a frequent caller and I just love all of you guys. I'm going through some stuff, and I got to thinking that I bet there are others out there who might be in my boat. I'm 41, a mom, and an alcoholic. But you may not notice from the outside right away; I can be charming, funny, put-together, a soccer mom, and a regular woman.

Christopher Forgy: Allow me to read an email exchange between one of our on-air personalities and a loyal, connected listener. This letter or this correspondence really speaks for itself and really needs no further introduction. So thank you for indulging me with this. Hi. You might recognize my name as I am a frequent caller and I just love all of you guys. I'm going through some stuff, and I got to thinking that I bet there are others out there who might be in my boat. I'm 41, a mom, and an alcoholic. But you may not notice from the outside right away; I can be charming, funny, put-together, a soccer mom, and a regular woman.

Speaker Change: Better than any other media out there, allow me to read an email exchange between one of our on-air personalities and a loyal, connected listener.

Speaker Change: This letter, this correspondence really speaks for itself and really needed no further introduction. So thank you for indulging me on this.

Speaker Change: Hi, you might recognize my name as I am a frequent caller and I just love all of you guys. I'm going through some stuff and I got to thinking that I bet there are others out there who might be in my boat. I'm 41, a mom and an alcoholic.

Christopher Forgy: But you may not notice from the outside right away, I can be charming, funny, put together, a soccer mom, regular woman. My struggles have intensified lately to the point I was thinking the worst. I knew I was at my rock bottom.

Chris Forgy: My struggles have intensified lately to the point where I was thinking the worst. I knew I was at rock bottom. Tuesday morning I got dressed for work and went on my way on a whim and tried calling an alcohol detox facility I had before they were full. This time, I simply said, "I need help." And I need it now, and the woman said, be here at 10 with a week's worth of clothes. I was so scared. And a little after 10, I started detoxing. It was awful.

Christopher Forgy: My struggles have intensified lately to the point where I was thinking the worst. I knew I was at rock bottom. Tuesday morning I got dressed for work and went on my way on a whim and tried calling an alcohol detox facility I had before they were full. This time, I simply said, "I need help." And I need it now, and the woman said, be here at 10 with a week's worth of clothes. I was so scared. And a little after 10, I started detoxing. It was awful.

Christopher Forgy: Tuesday morning I got dressed for work and went on my way on a whim and tried calling an alcohol detox facility I had before they were full. This time I simply said, I need help. And I need it now. And the woman said, be here at 10 with a week's worth of clothes.

Speaker Change: I was so scared.

Chris Forgy: Imagine feeling so sick and confused and scared that you would rather die, but there were people there to help. These people were angels. So now I'm home and coping. I'm either sleeping or running around the house making epic snacks and cleaning something random, like the handle on the microwave. It's driving my family crazy, but they're just happy I'm not drinking. The reason for telling you my story is that my first goal is to start re-strengthening my body.

Christopher Forgy: Imagine feeling so sick and confused and scared that you would rather die, but there were people there to help. These people were angels. So now I'm home and coping. I'm either sleeping or running around the house making epic snacks and cleaning something random, like the handle on the microwave. It's driving my family crazy, but they are just happy I'm not drinking. The reason for telling you my story is that my first goal is to start re-strengthening my body.

Christopher Forgy: and ' left ten i started detox

Magic: It was awful. Magic feeling so sick and confused and scared that you would rather die. But there were people there to help you. These people were angels.

Speaker Change: So now I'm home and coping. I'm either sleeping or running around the house making epic snacks and cleaning something random, like the handle on the microwave. It's driving my family crazy, but they're just happy I'm not drinking.

Speaker Change: the reason for telling you my story is my first goal is to start restrengthening my body i'm wondering if you would take me to my first workout at the workout fac to you endorse on the radio

Chris Forgy: I'm wondering if you would take me to my first workout at the workout facility you endorse on the radio. I'm completely out of shape, sore most of the time, get winded easily, and have low muscle tone due to years of poisoning my body, but I need to get healthy.

Christopher Forgy: I'm wondering if you would take me to my first workout at the workout facility you endorse on the radio. I'm completely out of shape, sore most of the time, get winded easily, and have low muscle tone due to years of poisoning my body, but I need to get healthy.

Speaker Change: i'm completely at a shape sore most of the time get wed easily low muscletone dueto years appointed my body but i need to get healthy

Chris Forgy: You have said that the exercises can be adjusted for any fitness level, so I'm hoping you can get on the road to feeling better about yourself. I understand if your schedule is too packed, and it was just a shot in the dark, because at this point, all I have, at this moment... That's all I have at this moment, with much admiration. And here is the reply from the on-air personality.

Christopher Forgy: You have said that the exercises can be adjusted for any fitness level, so I'm hoping you can get on the road to feeling better about yourself. I understand if your schedule is too packed, and it was just a shot in the dark, because at this point, all I have, at this moment... That's all I have at this moment, with much admiration. And here is the reply from the on-air personality.

Speaker Change: You have said that the exercises can be adjusted for any fitness level. So I'm hoping you can get on the road, I can get on the road to feeling better about myself.

Speaker Change: I understand if your schedule is too packed, then it was just a shot in the dark. Because at this point, all I have at this moment…

Speaker Change: That's all I have at this moment with much admiration and here was the reply From the on-air personality. I'm glad you reached out smiley face. So first off. It's the one thing I don't talk about on the air and that is I am very familiar with alcoholism addiction and it runs in my family

Chris Forgy: I'm glad you reached out, smiley face. So first off, it's the one thing I don't talk about on the air, and that is, I am very familiar with alcoholism addiction, and it runs in my family. So I have a spot, a soft spot instantly for you and your kids in my heart for you. I do have a question though: how amazing is it that you were strong enough to admit that you had a problem and ask for help? You are a queen.

Christopher Forgy: I'm glad you reached out, smiley face. So first off, it's the one thing I don't talk about on the air, and that is, I am very familiar with alcoholism addiction, and it runs in my family. So I have a spot, a soft spot instantly for you and your kids in my heart for you. I do have a question though: how amazing is it that you were strong enough to admit that you had a problem and ask for help? You are a queen.

Speaker Change: so i have a spot a soft spot instantly for you and your kids in my heart for you

Speaker Change: i do have a question though how amazing is it that you were strong enough to admit that you had a problem and ask for help you are a queen so detox as awful as it is done check the box

Christopher Forgy: So, detox, as awful as it is, done, check the box. Are you going to any sort of rehab or AA program? The support in that way is super important. Do you have a plan for after? with much admiration. Thank you for indulging me with that letter. I wanted to emphasize the fact that... what we do every day is important, and it's meaningful, and it's impactful, and it does make a difference

Chris Forgy: So, detox, as awful as it is, done, check the box. Are you going to any sort of rehab or AA program? The support in that way is super important. Do you have a plan for after? And now for your crazy idea. Not so crazy, because, of course, I'll take you to the first class.

Christopher Forgy: So, detox, as awful as it is, done, check the box. Are you going to any sort of rehab or AA program? The support in that way is super important. Do you have a plan for after? And now for your crazy idea, not so crazy, because, of course, I'll take you to the first class.

Christopher Forgy: Are you going to any sort of rehab or AA program? The support in that way is super important. Do you have a plan for after?

Speaker Change: And now for your crazy idea. Not so crazy because of course I'll take you to the first class with you.

Christopher Forgy: We've got to get you signed up for it, so let me know what day works for you. I'll be there this week, Monday through Friday at 11 a.m. Now, I just had surgery, so I'll be barely doing anything, but I'm going and doing what I can, so I'll be in the same boat as you. I am looking forward to hearing back from you and meeting you. Don't give up. Stay strong and keep asking for help because it only makes you stronger with much admiration.

Chris Forgy: We've got to get you signed up for it, so let me know what day works for you. I'll be there this week, Monday through Friday at 11 a.m. Now, I just had surgery, so I'll be barely doing anything, but I'm going and doing what I can, so I'll be in the same boat as you. I am looking forward to hearing back from you and meeting you. Don't give up. Stay strong and keep asking for help because it only makes you stronger with much admiration.

Speaker Change: We've got to get you signed up for it.

Christopher Forgy: So, let me know what day works for you. I'll be there this week, Monday through Friday at 11 a.m. Now, I just had surgery, so I'll be barely doing anything, but I'm going and doing what I can. So, I'll be in the same boat as you. Looking forward to hearing back and meeting you. Don't give up.

Christopher Forgy: Stay strong and keep asking for help because it only makes you stronger.

Christopher Forgy: Thank you for indulging me with that letter. I wanted to emphasize the fact that people still use radio to connect because it's important and it's meaningful. And what we do every day is important and it's meaningful, and it's impactful, and it does make a difference. Thank you again. Hang in there with us; we're doing some transformational and special things at Saga Communications, the best media company on the planet.

Chris Forgy: Thank you for indulging me with that letter. I wanted to emphasize the fact that people still use radio to connect because it's important and it's meaningful, and what we do every day is important and it's meaningful, and it's impactful, and it does make a difference. Thank you again. Hang in there with us. We're doing some transformational and special things at Saga Communications, the best media company on the planet.

Christopher Forgy: with much admiration.

Christopher Forgy: Thank you for indulging me with that letter. I wanted to emphasize the fact that

Christopher Forgy: people still use radio to connect because it's important and it's meaningful.

Christopher Forgy: and what we do every day is important in it's meaningful

Christopher Forgy: and it's impactful and it does make a difference.

Speaker Change: Thank you again. Hang in there with us. We are doing some transformational and special things at Saga Communications, the best media company on the planet.

Christopher Forgy: Thank you, Chris. And we did get a few questions that we'll address now, most of which we've already talked about a little bit. The first question is, broadcasters have reported that advertising trends have deteriorated in the third quarter, given the macroeconomic trend. What are you hearing from your local advertisers? Are they holding back given the economy? Do they anticipate stepping up advertising as the Fed lowers rates? You've already talked about this a bit, but would you like to give it a little more color?

Chris Forgy: Thank you, Chris. And we did get a few questions that we'll address now, most of which we've already talked about a little bit. The first question is, broadcasters have reported that advertising trends have deteriorated in the third quarter, given the macroeconomic trend. What are you hearing from your local advertisers? Are they holding back given the economy? Do they anticipate stepping up advertising as the Fed lowers rates? You've already talked about this a bit, but would you like to give a little more color? Yeah.

Speaker Change: What are you hearing from your local advertisers? Are they holding back given the economy? Do they anticipate stepping up advertising as the Fed lowers rates?

Christopher Forgy: You've already talked about this a bit, but would you like to give it a little more color?

Speaker Change: You've already talked about this a bit, but would you like to give a little more color?

Chris Forgy: Thanks for the question. As I said, interest rates and inflation impact the media sector greatly, more so than most businesses. And as I said earlier, it's a Main Street thing, not a Wall Street thing. And it's a category of business, being that there are $2,000 to $4,000 per month of advertisers that have said they will return. It's just a matter of when. So we do anticipate them coming back, but they have taken a pause in that space, which is clearly small business.

Christopher Forgy: Thanks for the question. As I said, interest rates and inflation impact the media sector greatly, more so than most businesses. And as I said earlier, it's a Main Street thing, not a Wall Street thing. And it's a category of business, being that there are $2,000 to $4,000 per month of advertisers that have said they will return. It's just a matter of when. So we do anticipate them coming back, but they have taken a pause in that space, which is clearly a small business.

Christopher Forgy: Thanks for the question. As I said, interest rates and inflation impact the media sector greatly more so than most businesses. As I said earlier, it's a Main Street thing, not a Wall Street thing.

Christopher Forgy: and it's a category of business.

Christopher Forgy: being that $2,000 to $4,000 per month of advertisers that have said they will return. It's just a matter of when. So we do anticipate them coming back, but they have taken a pause.

Christopher Forgy: in that space, which is clearly small business.

Chris Forgy: The second question, thank you for that; the second question is, what are the struggles that you have experienced with your rollout of your digital offering? One of the leading radio broadcasters that have effectively transitioned to digital recently expanded services to offer CRM products. Do you believe that you have runway on your current service offerings? Do you believe that you will still need to invest to offer an expanded product suite?

Christopher Forgy: The second question, thank you for that; the second question is, what are the struggles that you have experienced with your rollout of your digital offering? One of the leading radio broadcasters that have effectively transitioned to digital recently expanded services to offer CRM products. Do you believe that you have runway on your current service offerings? Do you believe that you will still need to invest to offer an expanded product suite?

Christopher Forgy: Very much so.

Speaker Change: the second question thank you for that the second question is what are the struggles that you have experienced with your rollout of your digital offeringsone of the leading radio broadcasters that is effectively transitioned to digital recently expanded services to offer crrm products

Christopher Forgy: One of the leading radio broadcasters that have effectively transitioned to digital recently expanded services to offer CRM products. Do you believe that you have runway on your current service offerings? Do you believe that you will still need to invest to offer an expanded product suite?

Speaker Change: Do you believe that you have runway on your current service offerings? Do you believe that you will still need to invest to offer an expanded product suite?

Christopher Forgy: So, I'll answer the first question first, and that is speed of America and our teams getting more and more comfortable with the new processes, kind of making the processes second nature and not having to think before they act, so they can play fast. And once they're able to play fast and make it second nature, we'll be able to better serve our customers because it won't be clunky and the like. So being able to play fast by getting comfortable.

Chris Forgy: So, I'll answer the first question first, and that is speed. What we need, and so from a sales perspective, our CRM is tied tightly to our entire operation. Investments have been made in the people, the products, and the processes. Now it's a matter of execution, and our teams are getting more and more comfortable with the new processes, kind of making the processes second nature and not having to think before they act, so they can play fast. And once they're able to play fast and make it second nature, we'll be able to better serve our customers because it won't be clunky and the like. So being able to play fast by getting comfortable.

Speaker Change: So, I'll answer the first question first, and that is...

Christopher Forgy: of America.

Speaker Change: Speed, speed's what we need. And so from a sales perspective, our CRM is tied tightly to our entire operation. The investments have been made in the people, the products, and the processes. Now it's a matter of execution.

Speaker Change: and our teams getting more and more comfortable with the new processes, kind of making the processes second nature and not having to think before they act so they can play fast.

Speaker Change: And once they're able to play fast and make it second nature, we'll be able to better serve our customers because it won't be clunky.

Christopher Forgy: and the like.

Christopher Forgy: And yes, we have a significant runway ahead of us. As I've said, we have had a number of transformational changes and growth taking place in Saga. And the one piece that we haven't talked a lot about is the one that's coming last. And there's a reason we don't talk a lot about it, because we don't want other people to know about it. And it is the one that will have the largest impact and the one that leaves the slowest, unfortunately.

Chris Forgy: And yes, we have a significant runway ahead of us. As I've said, we have had a number of transformational changes and growth taking place in Saga. And the one piece that we haven't talked a lot about is the one that's coming last. And there's a reason we don't talk a lot about it, because we don't want other people to know about it. And it is the one that will have the largest impact and the one that leaves the slowest, unfortunately.

Christopher Forgy: being able to play fast by getting comfortable. And yes, we have significant runway ahead of us.

Christopher Forgy: As I've said, we've had a number of transformational changes and growth taking place at Saga.

Christopher Forgy: and the one piece that we haven't talked a lot about.

Speaker Change: is the one that's coming last.

Christopher Forgy: And there's a reason we don't talk a lot about it, because we don't want other people to know about it. And it is the one that will have the largest impact and the one that leaves the slowest, unfortunately.

Samuel Bush: Can you talk about the allocation of capital? With the recent sell-off of the shares, do stock repurchases represent the best allocation of capital at this point? We've said continuously that our board continuously discusses capital allocation, share buybacks, dividends, acquisitions, etc., on a continuous basis. We do have a 10B5 program in place, but it did not currently happen.

Samuel Bush: Can you talk about the allocation of capital? With the recent sell-off of the shares, do stock repurchases represent the best allocation of capital at this point? We've said continuously that our board continuously discusses capital allocation, share buybacks, dividends, acquisitions, et cetera, on a continuous basis. We do have a 10B5 program in place, but it did not currently happen.

Speaker Change: Can you talk about allocation of capital? With the recent sell off of the shares, do stock repurchases represent the best allocation of capital at this point?

Speaker Change: We've said continuously our board discusses capital allocation, share buybacks, dividends, acquisitions, etc.

Speaker Change: on a continuous basis. We do have a 10B5 program in place, but it's not currently active.

Samuel Bush: Over the past 12 years, we have paid out over $132 million in dividends to our shareholders as a return of capital. Additionally, over the past 20 plus years, we have repurchased approximately 2.2 million shares of stock at a purchase price of approximately $58 million. The board will continue to evaluate capital allocations, and while buybacks have not been a part of the plans recently, they may be in the future. That's it. I think, Chris, if you've got anything to add other than that, we can wrap it up.

Christopher Forgy: Over the past 12 years, we have paid out over $132 million in dividends to our shareholders as a return of capital. The board will continue to evaluate capital allocations, and while buybacks have not been a part of the plans recently, they may be in the future.

Samuel Bush: Over the past 12 years, we have paid out over $132 million in dividends to our shareholders as a return of capital. Additionally, over the past 20 plus years, we have repurchased approximately 2.2 million shares of stock at a purchase price of approximately $58 million. The board will continue to evaluate capital allocations, and while buybacks have not been a part of the plans recently, they may be in the future. I think, Chris, if you've got anything to add other than that, we can wrap it up.

Christopher Forgy: Over the past 12 years, we have paid out over $132 million in dividends to our shareholder as a return of capital.

Speaker Change: additionally over the past twenty plus years we have repurchased approximately two point two million shares of stock at a purchase prze of approximately fifty eight million

Christopher Forgy: The board will continue to evaluate capital allocations, and while buybacks have not been a part of the plans recently, they may be in the future.

Christopher Forgy: With that, I think, Chris, if you've got anything to add other than that, we can wrap it up.

Chris Forgy: No, I think, Sam, I think you can turn it back over to Matt and we'll adjourn. Thank you all very much.

Christopher Forgy: No, I think, Sam, I think you can turn it back over to Matt and we'll adjourn. Thank you all very much.

Matt: Thank you, Matt. We'll let you wrap it up.

Operator: Thank you, Matt. We'll let you wrap it up.

Matt: Thank you. Everyone, this concludes today's event. You may disconnect at this time and have a wonderful day. Thank you for your participation.

Operator: Thank you. Everyone, this concludes today's event. You may disconnect at this time and have a wonderful day.

Operator: Thank you. Everyone, this concludes today's event. You may disconnect at this time and have a wonderful day. Thank you for your participation.

Speaker Change: Thank you, Matt. We'll let you wrap it up.

Operator: Thank you. Everyone, this concludes today's event. You may disconnect at this time and have a wonderful day. Thank you for your participation.

Unnamed: Samuel Bush, Christopher Forgy, Saga Commns

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