Ed Christian – Chairman, President and CEO Sam Bush – SVP, Treasurer, and CFO

Ladies and gentlemen, thank you for standing by and welcome to the Fourth Quarter and Year-End for Saga Communications Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, today’s call is being recorded. I would now like to turn the conference over to your host, President and CEO, Ed Christian. Please go ahead.

Thank you, Sean, and a very quick welcome all to the call and with that we will get right into it with Sam with his, as always, focused and [pissy] [ph] comments.

Thank you, Ed.

I didn’t say, I said [pissy] [ph].

I understand. 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 Factors 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. During the quarter, net revenues increased 7.7% to $36.4 million. Station operating expenses increased $1.8 million. The increase along with the station operating expense increase of $2.8 million reported in the third quarter were primarily due to the expense attributable to agreements entered into by the company to license historic Nielson data in selected markets in conjunction with entering into licenses to receive Nielson reports and services during future periods in those markets. Free cash flow for the quarter was $6.7 million compared to $5.6 million for the same period last year. For the year, net revenues increased 3.5% to $134 million; station operating expenses increased $5.4 million. In addition to the Nielson expense impact on our operating expenses which we’ve already talked about, our healthcare cost also contributed to the increased expenses for the year with an approximate $510,000 increase year-over-year. Our 10-K will give more details as to various other expense increases. Free cash flow for the year was $21 million compared to $21.6 million for the same period last year. National accounted for approximately 13.9% of gross revenue for the quarter compared to 14.5% for the same period last year and 13% this year compared to 13.4% last year. Gross political revenue for the quarter was $3 million compared to $345,000 for the same period last year. Radio was $2.2 million this quarter versus $342,000 last year. Television…

Don’t scare me there.

No, 1.5% to 1%, I’ll say that again, so I get it right. Ed, back to you.

Thank you, Sam, for the brief and cogent summary on both 2014 and Q4 and a little visibility into our first quarter right here. Perhaps, I can offer some additional clarity to certain [clausal] [ph] relationships. Certainly, 2014 was not a jump-up and shout-out year. The [indiscernible] certainly helped and we always appreciate that every other year when it comes in. 2014 wasn’t a great year for other industry and a lot of other industries and product categories, well, candidly admit that it was [buy] [ph] year. 2015 is starting up the same way. I kind of refer to it as a calm river of business with no apparent rapids or rocks [indiscernible]. Let’s take a minute and kind of look at the broader picture unless we paint with a small brush and perhaps single out broadcasting. Columnist Jonathon Trugman said it so well. How in a world can you do that, while gas prices have fallen 40% and the way these job numbers show growth, retail sales for January and February came up negative? And even in January, when people used most of the gift cards, it’s still didn’t help stimulate January and the sales were negative. Historically, falling prices at the pump have been very beneficial for retail sales. So, where is all of that extra money saved at fill-up going if it’s not finding its way into the retail tail. Retail sales are one of more specifically powered gauges of economic prosperity, is they are not based on sentiment or expectation or any other BS. We look at retail sales and that’s the mirror for us. Trugman by the way is positing that healthcare increases for individuals have soaked up this money and that additionally consumers are setting aside the gas premium for a rainy day. More…

And I think that covers pretty much everything.

And do we have any questions? And I know we have already…

We had a number of questions, but all those that we can talk specifically about, we’ve already answered and some like Retrans, more specific about what’s going on with Retrans in 2015, I indicated we’d give more color into that in our May conference call for first quarter. So I think…

I think we’re close in ramping up Retrans.

We are, we’ve got a couple of contracts we are still negotiating. They should come out very favorable to Saga. But I don’t want to quote any numbers now until we wrap up a couple of big ones.

Those are the secrets you are talking about, we can’t talk about.

That’s correct. We’ll talk more about that in May.

Okay. We are done till May?

We are done till May.

Okay. Thanks, and Sean, it’s your turn.

Thank you. Ladies and gentlemen, thank you for your participation and for using AT&T Executive Teleconference. You may now disconnect.