2018 Q4 Form 10-K Financial Statement

#000114420419014293 Filed on March 15, 2019

View on sec.gov

Income Statement

Concept 2018 Q4 2018 Q3 2018 Q2
Revenue $32.94M $31.65M $32.23M
YoY Change 4.68% 4.56% 6.52%
Cost Of Revenue $23.76M $23.43M $23.14M
YoY Change 2.24% 7.67% 7.98%
Gross Profit $9.180M $8.220M $9.090M
YoY Change 11.54% -3.41% 2.83%
Gross Profit Margin 27.87% 25.97% 28.2%
Selling, General & Admin $3.150M $2.810M $2.850M
YoY Change 13.31% -10.22% -1.04%
% of Gross Profit 34.31% 34.18% 31.35%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization
YoY Change
% of Gross Profit
Operating Expenses $3.170M $2.900M $3.060M
YoY Change 9.31% -3.33% 3.38%
Operating Profit $6.009M $5.321M $6.033M
YoY Change 55.23% -3.41% 2.67%
Interest Expense $229.0K $243.0K $255.0K
YoY Change 8.02% -4.33% 11.35%
% of Operating Profit 3.81% 4.57% 4.23%
Other Income/Expense, Net $2.000K -$25.00K $0.00
YoY Change
Pretax Income $5.970M $5.270M $5.966M
YoY Change 63.11% 0.29% 5.65%
Income Tax $1.670M $1.575M $1.795M
% Of Pretax Income 27.97% 29.89% 30.09%
Net Earnings $4.295M $3.695M $4.171M
YoY Change -71.04% -88.94% -8.01%
Net Earnings / Revenue 13.04% 11.68% 12.94%
Basic Earnings Per Share $0.72 $0.62 $0.70
Diluted Earnings Per Share $0.72 $0.62 $0.70
COMMON SHARES
Basic Shares Outstanding 5.820M 5.822M 5.834M
Diluted Shares Outstanding 5.820M 5.822M 5.834M

Balance Sheet

Concept 2018 Q4 2018 Q3 2018 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $44.70M $48.80M $52.90M
YoY Change -15.66% -39.75% 75.17%
Cash & Equivalents $44.73M $48.79M $52.91M
Short-Term Investments
Other Short-Term Assets $3.900M $3.800M $3.700M
YoY Change 2.63% 2.7% -86.3%
Inventory
Prepaid Expenses
Receivables $19.98M $18.92M $18.56M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $68.60M $71.56M $75.12M
YoY Change -9.95% -30.97% 0.97%
LONG-TERM ASSETS
Property, Plant & Equipment $59.10M $56.15M $56.10M
YoY Change 5.1% -0.34% 12.43%
Goodwill $18.84M $15.56M $15.56M
YoY Change 21.09% 0.91%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $6.690M $6.031M $6.133M
YoY Change -11.31% -22.9% -13.62%
Total Long-Term Assets $179.9M $171.0M $171.1M
YoY Change 4.22% -1.89% 12.18%
TOTAL ASSETS
Total Short-Term Assets $68.60M $71.56M $75.12M
Total Long-Term Assets $179.9M $171.0M $171.1M
Total Assets $248.5M $242.6M $246.2M
YoY Change -0.12% -12.73% 8.5%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.613M $2.216M $2.400M
YoY Change 18.45% 0.23% 4.35%
Accrued Expenses $3.072M $3.388M $3.622M
YoY Change -5.27% -87.14% -61.87%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $5.000M $0.00 $0.00
YoY Change -100.0% -100.0%
Total Short-Term Liabilities $23.17M $13.73M $14.92M
YoY Change 10.81% -71.03% -16.16%
LONG-TERM LIABILITIES
Long-Term Debt $15.00M $20.00M $25.00M
YoY Change -40.0% -20.0% -29.18%
Other Long-Term Liabilities $1.581M $1.718M $1.666M
YoY Change -32.06% -25.3% -46.26%
Total Long-Term Liabilities $16.58M $21.72M $26.67M
YoY Change -39.32% -20.45% -30.56%
TOTAL LIABILITIES
Total Short-Term Liabilities $23.17M $13.73M $14.92M
Total Long-Term Liabilities $16.58M $21.72M $26.67M
Total Liabilities $63.48M $58.40M $63.76M
YoY Change -8.41% -45.11% -27.22%
SHAREHOLDERS EQUITY
Retained Earnings $156.7M $155.7M $153.7M
YoY Change 3.35% 8.62%
Common Stock $76.00K $64.35M $63.78M
YoY Change -99.88% 3.52%
Preferred Stock
YoY Change
Treasury Stock (at cost) $36.56M $35.86M $35.11M
YoY Change 4.78% 5.51%
Treasury Stock Shares $1.703K
Shareholders Equity $185.0M $184.2M $182.4M
YoY Change
Total Liabilities & Shareholders Equity $248.5M $242.6M $246.2M
YoY Change -0.12% -12.73% 8.5%

Cashflow Statement

Concept 2018 Q4 2018 Q3 2018 Q2
OPERATING ACTIVITIES
Net Income $4.295M $3.695M $4.171M
YoY Change -71.04% -88.94% -8.01%
Depreciation, Depletion And Amortization
YoY Change
Cash From Operating Activities $7.390M $4.980M $8.820M
YoY Change -155.52% -9.12% 13.95%
INVESTING ACTIVITIES
Capital Expenditures -$1.470M -$1.540M -$1.410M
YoY Change 5.0% 8.45% -29.15%
Acquisitions
YoY Change
Other Investing Activities -$9.280M $20.00K $20.00K
YoY Change 2629.41% -99.96% -100.76%
Cash From Investing Activities -$10.76M -$1.520M -$1.400M
YoY Change 521.97% -103.35% -69.63%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -700.0K -7.570M -2.310M
YoY Change -94.6% 18825.0% -34.75%
NET CHANGE
Cash From Operating Activities 7.390M 4.980M 8.820M
Cash From Investing Activities -10.76M -1.520M -1.400M
Cash From Financing Activities -700.0K -7.570M -2.310M
Net Change In Cash -4.070M -4.110M 5.110M
YoY Change -85.47% -108.09% -1346.34%
FREE CASH FLOW
Cash From Operating Activities $7.390M $4.980M $8.820M
Capital Expenditures -$1.470M -$1.540M -$1.410M
Free Cash Flow $8.860M $6.520M $10.23M
YoY Change -174.39% -5.51% 5.14%

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CY2018 us-gaap Use Of Estimates
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<div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; margin-right: 0px;"><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Use of Estimates</div></div></div><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; margin: 0px 0px 0px 0.09in; text-indent: 0.5in; background: none;"><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: 0.25in; margin-right: 0px;"><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">The preparation of the financial statements in conformity with accounting principles generally accepted in the United States (GAAP) requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. While we do not believe that the ultimate settlement of any amounts reported will materially affect our financial position or results of future operations, actual results may differ from estimates provided.</div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
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<div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; margin-right: 0px;"><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Concentration of Risk</div></div></div><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; margin: 0px 0px 0px 0.09in; text-indent: 0.5in; background: none;"><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;&#160;</div></div><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: 0.25in; margin-right: 0px;"><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Certain cash deposits with financial institutions may at times exceed FDIC insurance limits.</div></div><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: 0.25in; margin-right: 0px; background: none;"><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: 0.25in; margin-right: 0px;"><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Our top five&#160;markets when combined represented 41%, 41% and 43% of our net operating revenue for the years ended December&#160;31, 2018, 2017 and 2016, respectively.</div></div><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; margin: 0px 0px 0px 0.09in; text-indent: 0.5in; background: none;"><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: 0.25in; margin-right: 0px;"><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">We sell advertising to local and national companies throughout the United States. We perform ongoing credit evaluations of our customers and generally do not require collateral. We maintain an allowance for doubtful accounts at a level which we believe is sufficient to cover potential credit losses.</div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
CY2018Q4 us-gaap Disposal Group Including Discontinued Operation Consideration
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9300000
CY2018 us-gaap Advertising Cost Policy Expensed Advertising Cost
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<div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; margin-right: 0px;"><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Advertising and Promotion Costs</div></div></div><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; margin: 0px 0px 0px 0.09in; text-indent: 0.5in; background: none;"><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: 0.25in; margin-right: 0px;"><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Advertising and promotion costs are expensed as incurred. Such costs related to our continuing operations amounted to $2,438,000, $2,441,000 and $2,633,000 for the years ended December&#160;31, 2018, 2017 and 2016, respectively. Advertising and promotion costs related to our discontinued operations amounted to $0, $240,000 and $341,000 for the years ended December&#160;31, 2018, 2017 and 2016, respectively.</div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
CY2018Q4 us-gaap Disposal Group Including Discontinued Operation Accounts Notes And Loans Receivable Net
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566000
CY2018Q4 us-gaap Deferred Finance Costs Net
DeferredFinanceCostsNet
120000
CY2016Q4 us-gaap Dividends Payable Amount Per Share
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CY2018Q4 us-gaap Indefinite Lived License Agreements
IndefiniteLivedLicenseAgreements
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CY2018 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
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AmortizationOfIntangibleAssets
860000
CY2016 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
642000
CY2018Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Next Twelve Months
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1029000
CY2018Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Year Two
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CY2018Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Year Three
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39000
CY2018Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Year Five
FiniteLivedIntangibleAssetsAmortizationExpenseYearFive
35000
CY2018 sga Disposal Group Including Discontinued Operation Income Tax Rate
DisposalGroupIncludingDiscontinuedOperationIncomeTaxRate
0.41
CY2017Q2 us-gaap Disposal Group Including Discontinued Operation Consideration
DisposalGroupIncludingDiscontinuedOperationConsideration
23000000
CY2018 us-gaap Amortization Of Acquisition Costs
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CY2018 sga Deferred Compensation Expense Non Qualified Plan
DeferredCompensationExpenseNonQualifiedPlan
149000
CY2017 sga Deferred Compensation Expense Non Qualified Plan
DeferredCompensationExpenseNonQualifiedPlan
211000
CY2016 sga Deferred Compensation Expense Non Qualified Plan
DeferredCompensationExpenseNonQualifiedPlan
184000
CY2018Q4 sga Discontinued Operation Disposal Of Discontinued Operation Transaction Costs
DiscontinuedOperationDisposalOfDiscontinuedOperationTransactionCosts
25000
CY2018Q1 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
0
CY2017Q1 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
0
CY2013Q4 sga Share Based Compensation Arrangement By Share Based Payment Award Options Exercise Price Description
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisePriceDescription
may not be exercised at a price which is less than 100% of the fair market value of shares at the date of grant.
CY2018 us-gaap Defined Contribution Plan Administrative Expenses
DefinedContributionPlanAdministrativeExpenses
1100
CY2017 us-gaap Defined Contribution Plan Administrative Expenses
DefinedContributionPlanAdministrativeExpenses
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CY2016 us-gaap Defined Contribution Plan Administrative Expenses
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CY2018 us-gaap Defined Contribution Plan Employer Discretionary Contribution Amount
DefinedContributionPlanEmployerDiscretionaryContributionAmount
265000
CY2017 us-gaap Defined Contribution Plan Employer Discretionary Contribution Amount
DefinedContributionPlanEmployerDiscretionaryContributionAmount
255000
CY2016 us-gaap Defined Contribution Plan Employer Discretionary Contribution Amount
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275000
CY2018Q2 us-gaap Nonoperating Income Expense
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0
CY2017Q2 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
0
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NonoperatingIncomeExpense
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CY2017Q3 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
0
CY2018Q4 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
2000
CY2017Q4 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
0
CY2018Q1 us-gaap Interest Income Other
InterestIncomeOther
89000
CY2017Q1 us-gaap Interest Income Other
InterestIncomeOther
0
CY2018Q2 us-gaap Interest Income Other
InterestIncomeOther
188000
CY2017Q2 us-gaap Interest Income Other
InterestIncomeOther
0
CY2018Q3 us-gaap Interest Income Other
InterestIncomeOther
167000
CY2017Q3 us-gaap Interest Income Other
InterestIncomeOther
0
CY2018Q4 us-gaap Interest Income Other
InterestIncomeOther
187000
CY2017Q4 us-gaap Interest Income Other
InterestIncomeOther
0
CY2018Q4 us-gaap Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Assets
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedAssets
9300000
CY2018 us-gaap Net Income Loss
NetIncomeLoss
13690000
CY2017 us-gaap Net Income Loss
NetIncomeLoss
54717000
CY2016 us-gaap Net Income Loss
NetIncomeLoss
18186000
CY2017 sga Business Acquisition Pro Forma Earnings Per Share Basic From Continuing Operations
BusinessAcquisitionProFormaEarningsPerShareBasicFromContinuingOperations
3.93
CY2018 sga Business Acquisition Pro Forma Earnings Per Share Basic From Disontinued Operations
BusinessAcquisitionProFormaEarningsPerShareBasicFromDisontinuedOperations
0
CY2017 sga Business Acquisition Pro Forma Earnings Per Share Basic From Disontinued Operations
BusinessAcquisitionProFormaEarningsPerShareBasicFromDisontinuedOperations
5.50
CY2017 sga Business Acquisitions Proforma Non Operating Interset Income
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0
CY2018 sga Business Acquisitions Pro Forma Non Operating Income
BusinessAcquisitionsProFormaNonOperatingIncome
-23000
CY2017 sga Business Acquisitions Pro Forma Non Operating Income
BusinessAcquisitionsProFormaNonOperatingIncome
0
CY2018 us-gaap Business Acquisition Pro Forma Earnings Per Share Basic
BusinessAcquisitionProFormaEarningsPerShareBasic
2.40
CY2017 us-gaap Business Acquisition Pro Forma Earnings Per Share Basic
BusinessAcquisitionProFormaEarningsPerShareBasic
9.43
CY2018 sga Business Acquisition Pro Forma Earnings Per Share Diluted From Continuing Operations
BusinessAcquisitionProFormaEarningsPerShareDilutedFromContinuingOperations
2.40
CY2017 sga Business Acquisition Pro Forma Earnings Per Share Diluted From Continuing Operations
BusinessAcquisitionProFormaEarningsPerShareDilutedFromContinuingOperations
3.93
CY2018 sga Business Acquisition Pro Forma Earnings Per Share Diluted From Discontinued Operations
BusinessAcquisitionProFormaEarningsPerShareDilutedFromDiscontinuedOperations
0
CY2017 sga Business Acquisition Pro Forma Earnings Per Share Diluted From Discontinued Operations
BusinessAcquisitionProFormaEarningsPerShareDilutedFromDiscontinuedOperations
5.50
CY2018 us-gaap Business Acquisition Pro Forma Earnings Per Share Diluted
BusinessAcquisitionProFormaEarningsPerShareDiluted
2.40
CY2017 us-gaap Business Acquisition Pro Forma Earnings Per Share Diluted
BusinessAcquisitionProFormaEarningsPerShareDiluted
9.43
CY2018 sga Business Acquisition Pro Forma Earnings Per Share Basic From Continuing Operations
BusinessAcquisitionProFormaEarningsPerShareBasicFromContinuingOperations
2.40
CY2018 sga Business Acquisitions Proforma Non Operating Interset Income
BusinessAcquisitionsProformaNonOperatingIntersetIncome
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CY2018 sga Ceo Employment Agreement
CeoEmploymentAgreement
In June 2011, we entered into a new employment agreement with Edward K. Christian, Chairman, President and CEO, which became effective as of June 1, 2011, and replaces and supersedes his prior employment agreement. On February 12, 2016 we entered into an amendment to the agreement (the &#8220;First Amendment&#8221;). The First Amendment extends the term of the employment agreement to March 31, 2021. The First Amendment also states that on each anniversary of the effective date of the employment agreement, the Company&#8217;s Compensation committee shall determine in its discretion the amount of any annual increases (which shall not be less than the greater of 4 % or a defined cost of living increase). Mr. Christian may defer any or all of his annual salary.
CY2018Q4 us-gaap Treasury Stock Shares
TreasuryStockShares
1703
CY2018 us-gaap Gain On Business Interruption Insurance Recovery
GainOnBusinessInterruptionInsuranceRecovery
23000
CY2017 us-gaap Gain On Business Interruption Insurance Recovery
GainOnBusinessInterruptionInsuranceRecovery
0
CY2016 us-gaap Gain On Business Interruption Insurance Recovery
GainOnBusinessInterruptionInsuranceRecovery
0
CY2018 us-gaap Income Tax Examination Penalties And Interest Expense
IncomeTaxExaminationPenaltiesAndInterestExpense
31000
CY2017 us-gaap Income Tax Examination Penalties And Interest Expense
IncomeTaxExaminationPenaltiesAndInterestExpense
0
CY2016 us-gaap Income Tax Examination Penalties And Interest Expense
IncomeTaxExaminationPenaltiesAndInterestExpense
0
CY2018Q4 us-gaap Income Tax Examination Penalties And Interest Accrued
IncomeTaxExaminationPenaltiesAndInterestAccrued
0
CY2017Q4 us-gaap Income Tax Examination Penalties And Interest Accrued
IncomeTaxExaminationPenaltiesAndInterestAccrued
0
CY2018Q4 us-gaap Deferred Tax And Other Liabilities Noncurrent
DeferredTaxAndOtherLiabilitiesNoncurrent
24035000
CY2018 dei Document Period End Date
DocumentPeriodEndDate
2018-12-31
CY2018 dei Document Fiscal Year Focus
DocumentFiscalYearFocus
2018
CY2018 dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
FY
CY2018 dei Entity Registrant Name
EntityRegistrantName
SAGA COMMUNICATIONS INC
CY2018 dei Entity Central Index Key
EntityCentralIndexKey
0000886136
CY2018 dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--12-31
CY2018 dei Document Type
DocumentType
10-K
CY2018 dei Amendment Flag
AmendmentFlag
false
CY2018 dei Entity Well Known Seasoned Issuer
EntityWellKnownSeasonedIssuer
No
CY2018 dei Entity Voluntary Filers
EntityVoluntaryFilers
No
CY2018 dei Entity Current Reporting Status
EntityCurrentReportingStatus
Yes
CY2018 dei Entity Filer Category
EntityFilerCategory
Accelerated Filer
CY2018Q2 dei Entity Public Float
EntityPublicFloat
191974321
CY2018 dei Trading Symbol
TradingSymbol
SGA
CY2018 dei Entity Shell Company
EntityShellCompany
false
CY2018 dei Entity Emerging Growth Company
EntityEmergingGrowthCompany
false
CY2018 dei Entity Small Business
EntitySmallBusiness
false

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