The radio broadcasting pure-play operation that’s building out its digital revenue opportunities under CEO Chris Forgy and CFO Sam Bush has moved ahead with a multimillion-dollar stock repurchase plan — an effort Bush believes will reinforce its confidence in its long-term strategy.
Saga Communications has reacquired some $2.1 million of its own common stock, a move Bush also says will balance shareholder returns with continued investment in digital transformation. A total of 184,215 shares were acquired for $11.50 per share. The buyback represents about 2.8% of the company’s outstanding shares, based on 6.56 million as of December 11.
Bush says the repurchase “underscores our ongoing commitment to deliver value to our shareholders. This transaction reflects our confidence in the company’s long-term strategy and financial strength, while providing us with greater flexibility to manage our capital structure. We remain focused on disciplined capital allocation and generating a meaningful return for all stakeholders.”
For Saga, the transaction reflects a long-term strategy to manage cash reserves while strengthening shareholder value, as stock repurchases reduce the number of shares available on the market and often increase the value of remaining shares. The decision comes as the group continues its ambitious goal of 67% of the broadcaster’s total revenue to come from digital advertising by 2030.
The stock buyback comes after Saga revealed that its third quarter revenue declined by 1.8%, to $28.2 million, as its operating expenses rose $2 million due to retroactive royalty increases under a new ASCAP and BMI settlement. This led to an operating loss of $626,000. Bush noted that without the settlement, Saga would have posted $1.5 million in operating income — roughly flat with last year’s $1.6 million.
Saga expects a tough Q4 due to $2 million in prior-year political revenue but projects another 32% gain in digital performance. The company also highlighted its $10.7 million sale of 22 tower sites as part of ongoing efforts to bolster profitability and reinvest in its digital evolution.
Saga shares were trading at $11.90 in pre-market trading immediately ahead of the Nasdaq Opening Bell on Wednesday (12/17).
