Saga Communications isn’t going to just let $7M sit around gathering dust. No, it is making a special distribution to investors that will become effective in early December 2012.
Holders of Class A and B Common Stock as of 11/15/12 will receive a special cash dividend of $1.65 per share, payable 12/3/12.
The $7M we mentioned is an estimate, and according to Saga, it “…will be funded by cash on the Company’s balance sheet.”
Marci Ryvicker of Wells Fargo Securities noted that the company’s financial profile looks good, with “solid free cash flow and a healthy balance sheet.” She noted FY2011 FCF of $22.6M, a bank leverage ration of 1.6x as of 6/30/12 and $13.2M cash on hand when the company last reported quarterly earnings 8/7/12.
The company’s stock last traded at $40.36 when we checked at 3:30 PM eastern on 10/2/12, down from the day’s opening of $41.82.
Primarily a radio company – it has 30 AMs, 61 FMs, three state radio networks and two ag networks; Saga also owns five full- and four low-power television stations.
The dividend is a one-time event – the company does not have a regularly scheduled payout.
