Saga Communications reported free cash flow increased 2.2% to $6.8 million for the quarter ended December 31, 2015. Gross revenue without political increased 2.1% for the quarter.
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Net revenue (including political) decreased 2.1% to $35.6 million. Station operating expense increased 1.0% to $25.9 million (station operating expense includes depreciation and amortization attributable to the stations).
Operating income decreased $1.4 million primarily due to the recognition of a $1.2 million gain during Q4 2014 in other operating income from the sale of four of the company's radio networks and the non-cash impairment charge of $1.9 million during the quarter in 2014 compared to $874 thousand in 2015. Net income for the period was $3.7 million ($0.63 per fully diluted share).
Free cash flow increased 2.9% to $21.6 million for the year ended December 31, 2015. Gross revenue without political increased 0.7% for the year. Net revenue (including political) decreased 0.9% to $132.9 million.
Station operating expense decreased 1.2% to $97.3 million (station operating expense includes depreciation and amortization attributable to the stations). Operating income decreased $1.9 million. Net income for the year was $13.4 million ($2.29 per fully diluted share).
Capital expenditures were down $600 thousand to $1.1 million in the 4th quarter compared to $1.7 million for the same period last year. For the year capital expenditures were approximately even with last year at $5.5 million.
The company currently expects to spend approximately $5.0 million to $5.5 million for capital expenditures during 2016.
During Q4 the company entered into an Asset Purchase Agreement to purchase WLVQ – FM in Columbus, OH for $13.0 million as well as disposing of its last radio network, the Illinois Radio Network.
The company begin operating WLVQ – FM pursuant to a Local Marketing Agreement as of November 16, 2015. The company closed on its purchase of WLVQ on February 3, 2016. ■