KOAM parent has decrease in net revenue

The second quarter report for Saga Communications, owner of KOAM and KFJX in the Joplin/Pittsburg market, showed a decrease of $350,000 in net revenue. According to the news release filed with the Securities and Exchange Commission:

Saga Communications, Inc. (NYSE-SGA) today reported that 2nd quarter 2008 free cash flow increased 5.5% to $5.9 million compared to $5.6 million for the same period last year. Net operating revenue decreased 2.8% from the comparable period in 2007 to $37.3 million and operating income decreased 12% to $7.8 million. Net income decreased $350 thousand to $3.5 million ($.17 per fully diluted share) for the quarter ended June 30, 2008 compared to $3.8 million ($.19 per fully diluted share) for the comparable period in 2007. For the same period, station operating expense increased $230 thousand to $27.3 million (station operating expense includes depreciation and amortization attributable to the stations). On a same station basis for the quarter, net operating revenue decreased 3.8% to $37.0 million, operating income decreased 13.3% to $7.6 million and station operating expense was approximately flat with last year at $27.0 million.
For the six month period ended June 30, 2008, free cash flow increased 17.2% to $7.6 million. Net operating revenue decreased 2.0% from the comparable period in 2007 to $68.9 million and operating income decreased 8.6% to $11.3 million and net income decreased $180 thousand to $4.4 million ($.22 per fully diluted share) compared to $4.6 million ($.23 per fully diluted share) for the comparable period in 2007. For the same period, station operating expense decreased $344 thousand to approximately $52.7 million (station operating expense includes depreciation and amortization attributable to the stations). On a same station basis for the six months, net operating revenue decreased 3.0% to $68.2 million, operating income decreased 10.1% to $11.1 million and station operating expense decreased $827 thousand to $52.2 million.
Capital expenditures in the second quarter of 2008 were $1.5 million of which $60 thousand were as a result of acquisitions. For the six months, capital expenditures were $3.5 million of which $330 thousand were as a result of acquisitions and $150 thousand were related to digital radio. Currently we expect capital expenditures for the year to be approximately $9.0 million.

During the quarter ended June 30, 2008, the Company bought back 297,249 shares of stock for a total purchase price of $1.6 million. For the 6 month period ended June 30, 2008 the Company bought back 536,362 shares for a total purchase price of $3.0 million. Since inception of the program and through July 31, 2008, the Company has bought back 2,645,235 shares of stock.