Saga Communications, Inc.

Good morning, ladies and gentlemen, and welcome to the Swap of Communications Q3 earnings conference call. At this time, all participants are in place in a listen-only mode. It is now my pleasure to turn it over to your host, Ed Christian, President and CEO of Swap of Communications. Sir, the floor is yours.

Catherine, thank you very much, and welcome, everybody. We have a lot of information to convey to you and some other additional thoughts. And with that, let me start by turning it over to Sam Bush, as usual.

Thank you, Ed. This call will contain forward-looking statements about our future performance and results of operations that involve risks and uncertainties that are described in the risk factor section of our most recent form, 10-K. This call will also contain a discussion of certain non-GAAP financial measures. Reconciliation for all the non-GAAP financial measures to the most directly comparable GAAP measure are attached in the selected financial data table. The third quarter continued to be materially impacted by the COVID pandemic, but as reported in the press release, we have seen significant increases in net revenue every month from the low point in April. Our net revenue in the third quarter was $24.1 million compared to $16.9 million in the second quarter. This is an increase of $7.3 million or 43.1% between the second and third quarters. Gross political for the quarter was $1.8 million. For the second quarter, it was $289,000, and for the nine months ended September 30, 2020, it was $3.1 million. As I already indicated, net revenue was up $7.3 million from the second to third quarter, so political certainly helped but was not an overriding factor. Political continued to be strong in October and for the first few days of November, so we expect October to be our highest revenue month for the year, with November remaining strong but falling below October as political revenue was finished yesterday. Without political, we expect gross revenue to continue a positive trend throughout the rest of the year. Our focus on local continues to pay off as the combined local direct and local agency increased 32.4% between the second and third quarters of this year. We have $49.8 million in cash on hand as of November 2nd compared to approximately $44 million at the beginning of the year. We expect there to be some fluctuation in this amount as the year continues, but we believe that our cash balances will continue to increase as as we get to year end. Again, this is if the current market conditions continue and we don't face another prolonged government mandated shutdown in our markets. At the end of the quarter, our outstanding debt remained $10 million, which given the cash on hand presents no covenant or liquidity issues. Leverage per our bank covenants calculates at 0.82%, but is really negative when you consider the cash we have on hand. Ed, with that short commentary on what continues to be an unprecedented year, I will turn it back over to you.