Acquisitions and Dispositions (Tables)

6 Months Ended

Jun. 30, 2016

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The allocation of the purchase price for the 2016 acquisitions is preliminary at June 30, 2016.

Saga Communications, Inc.

Condensed Consolidated Balance Sheet of 2016 and 2015 Acquisitions

	Acquisitions in
	2016		2015
	(In thousands)
Assets Acquired:
Current assets	$	814	$	977
Property and equipment		376		4,614
Other assets:
Broadcast licenses-Radio segment		8,045		2,218
Broadcast licenses-Television segment		—		—
Goodwill-Radio segment		4,408		2,548
Goodwill-Television segment		—		—
Other intangibles, deferred costs and investments		397		1,623
Total other assets		12,850		6,389
Total assets acquired		14,040		11,980
Liabilities Assumed:
Current liabilities		41		82
Total liabilities assumed		41		82
Net assets acquired	$	13,999	$	11,898

Business Acquisition Pro Forma Information

The pro forma results have been prepared for comparative purposes only and do not purport to indicate the results of operations which would actually have occurred had the combinations been in effect on the dates indicated or which may occur in the future.

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015

	(In thousands, except per share data)
Pro forma Consolidated Results of Operations
Net operating revenue	$	36,438	$	36,746	$	69,183	$	67,761
Station operating expense		25,420		25,968		50,120		50,425
Corporate general and administrative		2,620		2,583		5,337		5,065
Other operating expenses, net		8		14		8		14
Operating income		8,390		8,181		13,718		12,257
Interest expense		189		244		378		485
Other (income) expense, net		—		(409)		—		(417)
Income before income tax		8,201		8,346		13,340		12,189
Income tax expense		3,390		3,441		5,514		4,998
Net income	$	4,811	$	4,905	$	7,826	$	7,191
Basic earnings per share	$	.82	$	.85	$	1.34	$	1.24
Diluted earnings per share	$	.82	$	.84	$	1.33	$	1.23

Business Acquisition, Pro Forma Information By Segment

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
	(In thousands)
Radio Broadcasting Segment
Net operating revenue	$	30,866	$	31,405	$	58,330	$	57,635
Station operating expense		21,842		22,476		42,997		43,590
Other operating expenses, net		8		14		5		14
Operating income	$	9,016	$	8,915	$	15,328	$	14,031

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015

	(In thousands)
Television Broadcasting Segment
Net operating revenue	$	5,572	$	5,341	$	10,853	$	10,126
Station operating expense		3,578		3,492		7,123		6,835
Other operating expenses, net		—		—		3		—
Operating income	$	1,994	$	1,849	$	3,727	$	3,291

Reconciliation of pro forma segment operating income to pro forma consolidated operating income:

	Radio		Television		Corporate and Other		Consolidated

	(In thousands)
Three Months Ended June 30, 2016:
Net operating revenue	$	30,866	$	5,572	$	—	$	36,438
Station operating expense		21,842		3,578		—		25,420
Corporate general and administrative		—		—		2,620		2,620
Other operating expense		8		—		—		8
Operating income (loss)	$	9,016	$	1,994	$	(2,620)	$	8,390

	Radio		Television		Corporate and Other		Consolidated

	(In thousands)
Three Months Ended June 30, 2015:
Net operating revenue	$	31,405	$	5,341	$	—	$	36,746
Station operating expense		22,476		3,492		—		25,968
Corporate general and administrative		—		—		2,583		2,583
Other operating expense		14		—		—		14
Operating income (loss)	$	8,915	$	1,849	$	(2,583)	$	8,181

	Radio		Television		Corporate and Other		Consolidated
	(In thousands)
Six Months Ended June 30, 2016:
Net operating revenue	$	58,330	$	10,853	$	—	$	69,183
Station operating expense		42,997		7,123		—		50,120
Corporate general and administrative		—		—		5,337		5,337
Other operating expense		5		3		—		8
Operating income (loss)	$	15,328	$	3,727	$	(5,337)	$	13,718

	Radio		Television		Corporate and Other		Consolidated
	(In thousands)
Six Months Ended June 30, 2015:
Net operating revenue	$	57,635	$	10,126	$	—	$	67,761
Station operating expense		43,590		6,835		—		50,425
Corporate general and administrative		—		—		5,065		5,065
Other operating expense		14		—		—		14
Operating income (loss)	$	14,031	$	3,291	$	(5,065)	$	12,257