Item 2. Management’s Discussion and Analysis
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Cautionary Note Regarding Forward-Looking Statements
This quarterly report on Form 10-Q contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of forward-looking terms such as “will,” “may,” “believes,” “intends,” “expects,” “anticipates,” “plans,” “estimates,” “guidance,” and similar expressions that are intended to identify forward-looking statements that are not historical facts. These statements are made as of the date of this report or as otherwise indicated, based on current expectations. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions (“Future Factors”) that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what may be expressed or forecasted in such forward-looking statements. We undertake no obligation to update, amend, or clarify forward-looking statements, whether as a result of new information, future events (whether anticipated or unanticipated), or otherwise
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Future Factors include, among others, changes in national, regional and local economic conditions and advertising demand; shifts in audience behavior and listening habits; competition from traditional and non-traditional media, including digital, streaming and other online platforms; our ability to attract and retain advertising customers and to maintain or increase advertising rates; adverse changes in interest rates and interest rate relationships; our financial leverage, our ability to comply with debt covenants, and service our indebtedness; dependence on key personnel; dependence on key stations and the advertising revenue they generate; U.S. national and local economic conditions or an economic recession; market volatility; demand for our services; the degree of competition by traditional and non-traditional competitors; our ability to successfully integrate acquired stations; regulatory requirements including royalties we pay; variability in political advertising revenue due to election cycles, timing, candidate spending levels, regulatory developments, and advertising demand ; our ability to execute our digital strategy, including our ability to deliver measurable outcomes across paid search, display, social and online news offerings; our ability to successfully implement and scale our consumer-journey focus (including “ Click, Visit, Call and Search”) and to demonstrate value to customers; our ability to maintain and grow our “blended advertising” model and to integrate radio and digital solutions in a manner that is easy for advertisers to adopt; governmental and regulatory policy changes; changes in tax laws; the impact of technological advances; risks associated with cyber-attacks on our computer systems and those of our vendors; the outcomes of contingencies; trends in audience behavior; damage to our reputation resulting from adverse publicity, regulatory actions, litigation, and operational failures, the failure to meet client or listener expectations and other facts; changes in local real estate values; natural disasters; terrorist attacks; geopolitical conflicts, including conflicts in regions where we or our advertisers conduct business, the effects of widespread outbreak of illness or disease, inflation or deflation; our belief that our cash flow from operations will be sufficient to meet debt service requirements for payments of interest and scheduled payments of principal under our Credit Agreement if we borrow in the future; increased energy costs; and risk factors described in our annual report on Form 10-K for the year ended December 31, 2025 or elsewhere in this quarterly report. These are representative of the Future Factors that could cause a difference between an ultimate actual outcome and a forward-looking statement.
Introduction
The following discussion should be read in conjunction with the unaudited condensed consolidated financial statements and accompanying notes thereto of Saga Communications, Inc. and its subsidiaries contained elsewhere herein and the audited financial statements and Management’s Discussion and Analysis contained in our annual report on Form 10-K for the year ended December 31, 2025. The following discussion is presented on a consolidated basis.
Critical Accounting Policies and Estimates
Our consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (GAAP), which require us to make estimates, judgments and assumptions that affect the reported amounts of certain assets, liabilities, revenues, expenses and related disclosures and contingencies. We evaluate estimates used in preparation of our financial statements on a continual basis. There have been no significant changes to our critical accounting policies that are described in Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Policies” in our annual report on Form 10-K for the year ended December 31, 2025.
We use certain financial measures that are not calculated in accordance with generally accepted accounting principles in the United States of America (GAAP) to assess our financial performance. For example, we evaluate the performance of our markets based on “station operating income” (operating income plus corporate general and administrative expenses, depreciation and amortization, other operating (income) expenses, impairment of intangible assets and impairment of goodwill). Station operating income is generally recognized by the broadcasting industry as a measure of performance, is used by analysts who report on the performance of the broadcasting industry, and it serves as an indicator of the market value of a group of stations. In addition, we use it to evaluate individual stations, market-level performance, overall operations and as a primary measure for incentive-based compensation of executives and other members of management. Station operating income is not necessarily indicative of amounts that may be available to us for debt service requirements, other commitments, reinvestment or other discretionary uses. Station operating income is not a measure of liquidity or of performance in accordance with GAAP, and should be viewed as a supplement to, and not a substitute for, our results of operations presented on a GAAP basis. The most directly comparable GAAP measure to station operating income is operating income (loss).
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Financial Condition and Results of Operations
General
We are a media company primarily engaged in acquiring, developing and operating broadcast properties including opportunities complementary to our core radio business including digital, e-commerce and non-traditional revenue initiatives. We actively seek and explore opportunities for expansion through the acquisition of additional broadcast properties. We review acquisition opportunities on an ongoing basis.
Radio Stations and Complementary Digital Marketing Services
Our radio stations’ primary source of revenue is from the sale of advertising for broadcast on our stations. Depending on the format of a particular radio station, there are a predetermined number of advertisements available to be broadcast each hour.
Most advertising contracts are short-term and generally run for a few weeks only. The majority of our revenue is generated from local advertising, which is sold primarily by each radio market’s sales staff. For the three months ended March 31, 2026 and 2025, approximately 90% and 88%, respectively, of our radio stations’ gross revenue was from local advertising. To generate national advertising sales, we engage independent advertising sales representative firms that specialize in national sales for each of our broadcast markets.
Our revenue varies throughout the year. Advertising expenditures, our primary source of revenue, generally have been lowest during the winter months, which include the first quarter of each year. Furthermore, political advertising revenue may fluctuate significantly from period to period and year to year based on election cycles, the timing and competitiveness of races within our markets, and advertiser spending patterns. While gross political revenue was not a significant factor in our first quarter results, we expect political advertising to increase in periods that include higher levels of election activity; however, the timing and amount of political revenue is difficult to predict and may vary materially from historical levels. Our gross political revenue for the three months ended March 31, 2026 and 2025 was $275,000 and $271,000, respectively. For the remainder of the year, we have approximately $1.1 million of gross political revenue sold for a total of $1.4 million of gross political revenue sold thus far for the entire year compared to $650,000 for 2025.
Our net operating revenue, station operating expense and operating income varies from market to market based upon each market’s rank or size which is based upon population and the available radio advertising revenue in that particular market.
The broadcasting industry and advertising in general is influenced by the state of the overall economy, including unemployment rates, inflation, energy prices and consumer interest rates. Our stations primarily broadcast in small to midsize markets.
Our financial results are dependent on a number of factors, the most significant of which is our ability to generate advertising revenue through rates charged to advertisers. The rates a station is able to charge are, in large part, based on a station’s ability to attract audiences in the demographic groups targeted by its advertisers. In a number of our markets, this is measured by periodic reports generated by independent national rating services. In the remainder of our markets it is measured by the results advertisers obtain through the actual running of an advertising schedule. Advertisers measure these results based on increased demand for their goods or services and/or actual revenues generated from such demand. Various factors affect the rates a station can charge, including the general strength of the local and national economies, population growth, ability to provide popular programming, local market competition, target marketing capability of radio compared to other advertising media, and signal strength.
When we acquire and/or begin to operate a station or group of stations we generally increase programming and advertising and promotion expenses to increase our share of our target demographic audience. Our strategy sometimes requires levels of spending commensurate with the revenue levels we plan on achieving in two to five years. During periods of economic downturns, or when the level of advertising spending is flat or down across the industry, this strategy may result in the appearance that our cost of operations is increasing at a faster rate than our growth in revenues, until such time as we achieve our targeted levels of revenue for the acquired station or group of stations.
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The number of advertisements that can be broadcast without jeopardizing listening levels (and the resulting ratings) is limited in part by the format of a particular radio station. Our stations strive to maximize revenue by constantly managing the number of commercials available for sale and adjusting prices based upon local market conditions and ratings. While there may be shifts from time to time in the number of advertisements broadcast during a particular time of day, the total number of advertisements broadcast on a particular station generally does not vary significantly from year to year. Any change in our revenue, with the exception of those instances where stations are acquired or sold, is generally the result of inventory sell-out ratios and pricing adjustments, which are made to ensure that the station efficiently utilizes available inventory.
Our radio stations employ a variety of programming formats. We periodically perform market research, including music evaluations, focus groups and strategic vulnerability studies. Because reaching a large and demographically attractive audience is crucial to a station’s financial success, we endeavor to develop strong listener loyalty. Our stations also employ audience promotions to further develop and secure a loyal following. We believe that the diversification of formats on our radio stations helps to insulate us from the effects of changes in musical tastes of the public on any particular format.
The primary operating expenses involved in owning and operating radio stations are employee salaries and related benefits costs, sales commissions, programming expenses, depreciation, and advertising and promotion expenses.
The radio broadcasting industry is subject to rapid technological change, evolving industry standards and the emergence of new media technologies and services. These new technologies and media are gaining advertising share against radio and other traditional media.
The advertising industry continues to evolve as businesses increasingly utilize multiple media channels to reach consumers. In response to these industry trends, we have expanded the range of advertising solutions offered to our clients to include both broadcast radio advertising and complementary digital marketing services.
We continue to execute Saga’s digital strategy focused on the consumer journey. Our integrated (or “blended”) advertising approach allows advertisers to combine the reach and audience engagement of radio with digital advertising tools that enable more targeted consumer engagement and campaign measurement. These services include paid search advertising, targeted digital display advertising, streaming advertising, social media advertising, online video advertising, website-based advertising, on-line news services and other related digital marketing services.
Paid search advertising campaigns are designed to reach consumers actively searching for products or services. Targeted digital display advertising campaigns are delivered through programmatic advertising platforms and allow advertisers to reach audiences based on geographic location, behavioral attributes, contextual relevance and other targeting parameters. Most of our radio stations are able to be streamed on third party music platforms and our customers advertise between songs played on the streaming service. Additionally, we have online news sites, where advertisers place web banners that link to the client’s website and other e-commerce initiatives. Performance within these digital product categories may vary based on consumer behavior, advertiser demand, and the effectiveness of our sales execution. We consider these categories part of our broader digital strategy to provide advertisers with measurable outcomes across multiple touchpoints in the consumer journey. For the three months ended March 31, 2026 and 2025, approximately 19% and 14%, respectively, of our radio stations’ gross revenue was from digital advertising.
Our digital advertising services are supported by a centralized team of digital implementation specialists who work in conjunction with local market personnel to execute and optimize campaigns. Campaign performance is monitored throughout the duration of the advertising schedule and clients are generally provided periodic reports which may include impressions, clicks, website visits, calls generated and other campaign performance indicators. As part of our digital transformation strategy, we focus on a blended approach that combines broadcast radio with complementary digital products, including paid search and targeted digital display, to support the consumer journey. In evaluating progress, we monitor key operating metrics such as (i) growth in paid search and targeted display activity, (ii) the number of advertising accounts that purchase blended campaigns and related client retention, and (iii) changes in local direct advertising activity associated with blended campaigns. These operating metrics are intended to provide insight into our execution and adoption of our blended strategy, and may be influenced by factors such as overall advertising demand, our ability to train and retain personnel, competition, and client budget allocations.
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Our digital advertising services rely on a number of third-party technology platforms and advertising exchanges, including major search, social media and programmatic advertising providers. Changes in the policies, technologies or pricing structures of these platforms could affect the manner in which digital advertising services are delivered.
We expect the use of integrated advertising strategies combining broadcast and digital media to continue evolving as advertisers seek broader reach, targeted messaging and measurable marketing outcomes.
We also continue to evaluate opportunities to increase operating efficiencies through technology and automation, including the use of artificial intelligence in certain content and operational workflows, where appropriate, to support efficiency and scalability.
During the three months ended March 31, 2026 and 2025 and the years ended December 31, 2025 and 2024, our Charleston, South Carolina: Columbus, Ohio; Milwaukee, Wisconsin; Norfolk, Virginia and Portland, Maine markets, when combined, represented approximately 36%, 35%, 34% and 36%, respectively, of our consolidated net operating revenue. An adverse change in any of these radio markets or our relative market position in those markets could have a significant impact on our operating results as a whole.
The following table describes the percentage of our consolidated net operating revenue represented by each of these markets:
Percentage of Consolidated
Percentage of Consolidated
Net Operating Revenue for
Net Operating Revenue
the Three Months Ended
for the Years Ended
March 31,
December 31,
2026
2025
2025
2024
Market:
Charleston, South Carolina
7
%
6
%
6
%
6
%
Columbus, Ohio
6
%
7
%
7
%
8
%
Milwaukee, Wisconsin
12
%
12
%
11
%
12
%
Norfolk, Virginia
5
%
5
%
5
%
5
%
Portland, Maine
6
%
5
%
5
%
5
%
During the three months ended March 31, 2026 and 2025 and the years ended December 31, 2025 and 2024, the radio stations in our five largest markets, when combined, represented approximately 60%, 51%, 39% and 40%, respectively, of our consolidated station operating income. The following table describes the percentage of our consolidated station operating income represented by each of these markets:
Percentage of Consolidated
Percentage of Consolidated
Station Operating Income (*)
Station Operating Income(*)
for the Three Months Ended
for the Years Ended
March 31,
December 31,
2026
2025
2025
2024
Market:
Charleston, South Carolina
22
%
9
%
8
%
7
%
Columbus, Ohio
(29)
%
—
%
1
%
5
%
Milwaukee, Wisconsin
58
%
31
%
19
%
17
%
Norfolk, Virginia
(8)
%
2
%
4
%
5
%
Portland, Maine
17
%
9
%
7
%
6
%
*
Station operating income is operating income adjusted for corporate general and administrative expenses, depreciation and amortization, other operating (income) expenses, impairment of goodwill and impairment of intangible assets (a non-GAAP measure). Markets may reflect negative percentages when station operating income is negative.
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Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025
Results of Operations
The following table summarizes our results of operations for the three months ended March 31, 2026 and 2025.
Three Months Ended
March 31,
$ Increase
% Increase
2026
2025
(Decrease)
(Decrease)
(In thousands, except percentages and per share information)
Net operating revenue
$
22,867
$
24,212
$
(1,345)
(5.6)
%
Station operating expenses
22,012
21,963
49
0.2
%
Corporate general and administrative
2,976
3,167
(191)
(6.0)
%
Depreciation and amortization
1,174
1,326
(152)
(11.5)
%
Other operating (income) expense, net
(33)
54
(87)
N/M
Operating loss
(3,262)
(2,298)
(964)
(41.9)
%
Interest expense
91
107
(16)
(15.0)
%
Interest income
(234)
(222)
(12)
5.4
%
Other income
(55)
(23)
(32)
139.1
%
Loss before income tax expense
(3,064)
(2,160)
(904)
(41.9)
%
Income tax (benefit) expense
Current
75
(670)
745
(111.2)
%
Deferred
(745)
85
(830)
976.5
%
(670)
(585)
(85)
14.5
%
Net loss
$
(2,394)
$
(1,575)
$
(819)
(52.0)
%
Earnings (loss) per share (diluted)
$
(0.38)
$
(0.25)
$
(0.13)
(52.0)
%
N/M = Not Meaningful
For the three months ended March 31, 2026, consolidated net operating revenue was $22,867,000 compared with $24,212,000 for the three months ended March 31, 2025, a decrease of $1,345,000 or 5.6%. The decrease was primarily a result of decreases in gross local revenue, gross national revenue, gross other income of $1,716,000, $247,000 and $197,000 respectively partially offset by increases in gross digital revenue of $879,000 for the comparable period of 2025. The most significant decreases in gross local revenue were at our Asheville, North Carolina, Columbus, Ohio; Des Moines, Iowa and Ocala, Florida markets. The significant decreases in gross local revenue were partially offset by increases in our local e-commerce revenue which was up $100,000 or 23%. The markets with the most significant decreases in gross national revenue were at our Columbus, Ohio; Des Moines, Iowa; Manchester, New Hampshire and Norfolk, Virginia markets. The decrease in other income is primarily related to the tower lease income the Company is no longer receiving as a result of the tower sale discussed in Note 13 as part of the Company’s capital allocation plan to sell non-core assets. The increase in gross digital revenue is primarily due to an increase in our digital services revenue of $1,090,000, which is comprised of display, which increased $636,000 or 120%, search, which increased $378,000 or 105%, and other digital services which includes OTT/CTV campaigns, social media campaigns, best of digital, search engine optimization, and managed email, which combined increased $63,000 or 19% and an increase in mobile streaming of $82,000 or 116%, partially offset by a decline in our national streaming revenue of $197,000 or 32%, local streaming revenue of $50,000 or 7%, and online news revenue of $44,000 or 7% .
Station operating expense was $22,012,000 for the three months ended March 31, 2026, compared with $21,963,000 for the three months ended March 31, 2025, an increase of $49,000 or 0.2%. The increase in station operating expense was primarily the result of increases in digital services expenses, FCC related fees and sales survey expenses of $613,000, $105,000 and $60,000, respectively, partially offset by decreases in compensation-related expenses, and advertising and promotional expenses of $678,000 and $93,000, respectively for the comparable period of 2025. The increases in our digital services expenses relate to the investment we are making in our digital fulfillment team and digital campaign managers, as well as the cost of the digital service products. For 2026, we expect our digital service expenses to increase approximately $1 million to cover these additional hires. We are also investing in local sales managers at several of our markets, which we expect to increase station operating expense approximately $500,000 in 2026.
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We had an operating loss for the three months ended March 31, 2026 of $3,262,000 compared to an operating loss of $2,298,000 for the three months ended March 31, 2025, an increase in the loss of $964,000. The increase was a result of the decrease in net operating revenue and a minor increase in station operating expense, as noted above, partially offset by a decrease in corporate general and administrative expenses of $191,000, a decrease in depreciation and amortization of $152,000 and by a decrease in other operating expense of $87,000. The decrease in corporate general and administrative expenses was primarily comprised of decreases in additional expenses related to shareholder activism and a potential proxy contest of $110,000 in 2025 and a decrease in travel expense of approximately $82,000. The decrease in depreciation and amortization is primarily attributable to a reduction in assets as a result of the tower sale described in Note 13. In 2026, we recorded a gain on the sale of fixed assets and intangibles of $33,000 compared to a loss on the sale of fixed assets of $54,000 in 2025. The gain on the sale of fixed assets is primarily related to the sale of a property in Springfield, Massachusetts as described in Note 12.
We generated a net loss of $2,394,000 ($ (0.38) per share on a fully diluted basis) during the three months ended March 31, 2026, compared to a net loss of $1,575,000 ($ (0.25) per share on a fully diluted basis) for the three months ended March 31, 2025, an increase in the net loss of $819,000. The decrease in net income or increase in net loss is primarily due to the decrease in operating income, described above, a decrease in interest expense of $16,000, an increase in interest income of $12,000, an increase in other income of $32,000, and an increase in income tax benefit of $85,000. The decrease in interest expense is due to a decrease in our interest rates. The increase in our interest income is due to a higher cash on hand balance during the period. The increase in other income was due to insurance proceeds. The increase in the tax benefit is due to the increase in our loss before income taxes in 2026.
Liquidity and Capital Resources
Debt Arrangements and Debt Service Requirements
In connection with the Sale-Leaseback Transaction described in Note 13 to the accompanying consolidated financial statements, the Company entered into a Fourth Amendment (“Fourth Amendment”) to its Credit Agreement, dated as of August 18, 2015 and amended on September 1, 2017, June 17, 2018, and December 19, 2022, between the Company, JPMorgan Chase Bank, N.A. and The Huntington National Bank (collectively, the “Lenders”), and JPMorgan Chase Bank, N.A., in its capacity as Administrative Agent for the Lenders (“Agent”), (i) reducing the aggregate amount of the Lender’s revolving commitments from $50,000,000 to $40,000,000, and (ii) releasing the Agent’s security interest in the GTC Assets, but not any proceeds paid for the GTC Assets or any other collateral (the borrowing arrangement governed by the Credit Agreement). Previously, on December 19, 2022, we entered into a Third Amendment to our Credit Agreement, (the “Third Amendment”), which extended the maturity date to December 19, 2027, reduced the lenders to JPMorgan Chase Bank, N.A., and the Huntington National Bank (collectively, the “Lenders”), established an interest rate equal to the secured overnight financing rate (“SOFR”) as administered by the SOFR Administrator (currently established as the Federal Reserve Bank of New York) as the interest base and increased the basis points.
We have pledged substantially all of our assets (excluding our FCC licenses and certain other assets) in support of the Credit Agreement and each of our subsidiaries has guaranteed the Credit Agreement and has pledged substantially all of their assets (excluding their FCC licenses and certain other assets) in support of the Credit Agreement.
Interest rates under the Credit Agreement are payable, at our option, at alternatives equal to SOFR (3.68% at March 31, 2026), plus 1% to 2% or the base rate plus 0% to 1%. The spread over SOFR and the base rate vary from time to time, depending upon our financial leverage. Letters of credit issued under the Credit Agreement will be subject to a participation fee (which is equal to the interest rate applicable to Eurocurrency Loans, as defined in the Credit Agreement) payable to each of the Lenders and a fronting fee equal to 0.25% per annum payable to the issuing bank. Under the Third Amendment, we now pay quarterly commitment fees of 0.25% per annum on the unused portion of the Credit Agreement. We previously paid quarterly commitment fees of 0.2% to 0.3% per annum on the unused portion of the Credit Agreement.
The Credit Agreement contains a number of financial covenants which, among other things, require us to maintain specified financial ratios and impose certain limitations on us with respect to investments, additional indebtedness, dividends, distributions, guarantees, liens and encumbrances.
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As of March 31, 2026, the Company was not in compliance with the minimum fixed charge coverage ratio covenant under its Credit Agreement which requires the Company to maintain a minimum fixed charge coverage ratio of 1.15 to 1.00 at the end of each fiscal quarter. At March 31, 2026, the Company’s fixed charge coverage ratio was 0.92 to 1.00, constituting an event of default under the Credit Agreement.
On May 7, 2026, the Company obtained a waiver from its lenders for this covenant violation (the “Waiver”). The Waiver applies solely to the noncompliance as of March 31, 2026 and does not modify the covenant requirements for future periods unless otherwise amended.
We are currently in discussions with the Lenders regarding a potential amendment to the Credit Agreement to, among other things, modify the fixed charge coverage ratio covenant calculation going forward. However, there can be no assurance that we will be able to negotiate such an amendment. If we are unable to obtain an amendment or otherwise comply with the covenant in future periods, the Lenders would have the right to declare all outstanding borrowings under the Credit Agreement immediately due and payable. Our intent would be to pay-off the outstanding indebtedness using existing cash and cash equivalents, which we believe are sufficient for our short-term and long-term cash requirements.
We have $5,000,000 debt outstanding at December 31, 2025 and March 31, 2026 that we borrowed in conjunction with our Lafayette acquisition.
We have approximately $35 million of unused borrowing capacity under the Revolving Credit Agreement at both March 31, 2026 and December 31, 2025.
Sources and Uses of Cash
During the three months ended March 31, 2026 and 2025, we had net cash flows from operating activities of $407,000 and $1,364,000, respectively. We believe that cash flow from operations will be sufficient to meet quarterly debt service requirements for payments of interest and scheduled payments of principal under our Credit Agreement if we borrow in the future. However, if such cash flow is not sufficient, we may be required to sell additional equity securities, refinance our obligations or dispose of one or more of our properties in order to make such scheduled payments. There can be no assurance that we would be able to effect any such transactions on favorable terms, if at all.
In March 2013, our Board of Directors authorized an increase to our Stock Buy-Back Program (the “Buy-Back Program”) to allow us to purchase up to $75.8 million of our Class A Common Stock. From its inception in 1998 through March 31, 2026, we have repurchased 2.4 million shares of our Class A Common Stock for $60.6 million. During the three months ended March 31, 2026, approximately 1,067 shares were retained for payment of withholding taxes for approximately $13,000 related to the vesting of restricted stock. We continue to monitor economic conditions to determine if and when it makes sense to make additional buybacks under our plan.
Our capital expenditures, exclusive of acquisitions, for the three months ended March 31, 2026 were $779,000 ($696,000 in 2025). We anticipate capital expenditures in 2026 to be approximately $3.5 million, which we expect to finance through funds generated from operations.
During the first quarter of 2026, as part of the Company’s previously disclosed capital allocation plan to sell non-core assets, the Company sold a property in Springfield, Massachusetts for approximately $460,000. As a result of the sale, the Company recorded a gain of approximately $80,000, which is recorded in other operating (income) expense, net in the Company’s Condensed Consolidated Statement of Operations.
During the three months ended March 31, 2026, the Company’s Board of Directors declared a quarterly cash dividend on its Class A Common Stock. This dividend totaling approximately $1.6 million was paid during the first quarter of 2026.
During the three months ended March 31, 2025, the Company’s Board of Directors declared a quarterly cash dividend on its Class A Common Stock. This dividend totaling approximately $1.6 million was paid during the first quarter of 2025.
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We anticipate that any future acquisitions of radio stations and dividend payments will be financed through funds generated from operations, borrowings under the Credit Agreement, additional debt or equity financing, cash on hand, or a combination thereof. However, there can be no assurances that any such financing will be available on acceptable terms, if at all.
Summary Disclosures About Contractual Obligations and Commercial Commitments
We have future cash obligations under various types of contracts, including the terms of our Credit Agreement, operating leases, programming contracts, employment agreements, and other operating contracts. For additional information concerning our future cash obligations see “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operation — Summary Disclosures About Contractual Obligations” in our annual report on Form 10-K for the year ended December 31, 2025.
We anticipate that our contractual cash obligations will be financed through funds generated from operations or additional borrowings under the Credit Agreement, or a combination thereof.
Recent Accounting Pronouncements
Recent accounting pronouncements are described in Note 2 to the accompanying financial statements.
Inflation
The impact of inflation on our operations has not been significant to date. We are, however, starting to see the effects of higher inflation starting to impact costs of most goods and services. There can be no assurance that a high rate of inflation in the future would not have an adverse effect on our operations.
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