Saga Communications earnings fall - $160,000 spent on HD Radio

[PocketRadio]

"TABLE-Saga Communications Q1 earnings fall"

"The broadcasting company said capital expenditures in the latest first quarter were about $2.4 million, with about $923,000 being spent as a result of acquisitions and $160,000
as a part of its ongoing HD Radio conversions."

http://www.reuters.com/article/marketsNews/idUSWNAS063820070509

Yea, just like the rest of those companies involved with HD Radio - those HD Radio conversion costs will be recouped in no-time ! Notice, that the HD Radio conversion is on-going, so iBiquity, and so forth, aren't finished ravaging Saga's pockets ! When, will it ever end ?

 

[Mike Walker]

Well DUH! Any capitol improvement in ANY business represents a hit to the bottom line in the short-term. Again...DUH! Money I spend on a new home would negatively affect my family's "bottom line" in the short term. Over time, not so much! This is economics on the Sesame Street level!

NEWS FLASH: MONEY SPENT ON HD IS NO LONGER AVAILABLE FOR ANYTHING ELSE!

2ND NEWS FLASH: MONEY SPENT ON COFFEE IS NO LONGER AVAILABLE FOR ANYTHING ELSE!

HEY! Money spent on ANYTHING by ANYONE at ANY TIME is no longer available for anything else. Double DUH!

 

[davideduardo]

"TABLE-Saga Communications Q1 earnings fall"

"The broadcasting company said capital expenditures in the latest first quarter were about $2.4 million, with about $923,000 being spent as a result of acquisitions and $160,000
as a part of its ongoing HD Radio conversions."

http://www.reuters.com/article/marketsNews/idUSWNAS063820070509

Yea, just like the rest of those companies involved with HD Radio - those HD Radio conversion costs will be recouped in no-time ! Notice, that the HD Radio conversion is on-going, so iBiquity, and so forth, aren't finished ravaging Saga's pockets ! When, will it ever end ?

Capex items are not expensed, they are depreciated over the useful life of the item, following standard accountiing procedurs and IRS guidelines. There are a number of ways of expensing capex items, but the impact generally does not fall in the same year as the expense, but, rather, over a number of years. Further, broadcast companies report Broadcast Cash Flow or EBITDA, which is earnings BEFORE interst, taxes, depreciation and amortization and capex items do not affect EBITDA.

The amount they spent on HD is less than the cost of a nice studio renovation... Í'm in the middle of one right now at one facility, and that single studio buildout is about $200,000.

 

[clouseau]

"TABLE-Saga Communications Q1 earnings fall"

"The broadcasting company said capital expenditures in the latest first quarter were about $2.4 million, with about $923,000 being spent as a result of acquisitions and $160,000
as a part of its ongoing HD Radio conversions."

http://www.reuters.com/article/marketsNews/idUSWNAS063820070509

Yea, just like the rest of those companies involved with HD Radio - those HD Radio conversion costs will be recouped in no-time ! Notice, that the HD Radio conversion is on-going, so iBiquity, and so forth, aren't finished ravaging Saga's pockets ! When, will it ever end ?

Ohhhhh $160,000???

Pocket... Doesn't you house cost more than that??? (Unless he lives under a bridge)

Doesn't Clear Channel spend more on HD than that??? (yes)

Gee, did Clear Channel revenues go up in Q1 (Year to year)? (yes)

YOU should conclude that spending more money on HD makes you more profitable... (My apologies to anyone who possesses a brain)

Clouseau


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