Salem Media Group, Inc. Announces Second Quarter 2022 Total Revenue of $68.7 Million
Research, News, and Market Data on Salem Media
August 04, 2022 4:05pm EDT
Earnings
Webcast
IRVING, Texas–(BUSINESS WIRE)– Salem Media Group, Inc. (Nasdaq: SALM) released its results for the three and six months ended June 30, 2022.
Second Quarter
2022 Results
For the quarter ended June 30, 2022 compared to the quarter ended June 30, 2021:
Consolidated
- Total revenue increased 7.7% to $68.7 million from $63.8 million;
- Total operating expenses increased 5.5% to $61.4 million from $58.1 million;
- Operating expenses, excluding gains or losses on the disposition of assets, stock-based compensation expense, debt modification costs, impairments, depreciation expense and amortization expense (1) increased 10.7% to $60.9 million from $55.0 million;
- The company’s operating income increased 29.9% to $7.3 million from $5.6 million;
- The company recognized $3.9 million in film distribution income from an unconsolidated equity investment;
- The company’s net income increased 303.9% to $9.1 million, or $0.33 net income per diluted share from $2.3 million, or $0.08 net income per diluted share;
- EBITDA (1) increased 60.9% to $14.5 million from $9.0 million; and
- Adjusted EBITDA (1) increased 33.6% to $11.7 million from $8.7 million.
Broadcast
- Net broadcast revenue increased 12.1% to $52.5 million from $46.8 million;
- Station Operating Income (“SOI”) (1) decreased 6.2% to $10.0 million from $10.6 million;
- Same Station (1) net broadcast revenue increased 12.2% to $52.4 million from $46.7 million; and
- Same Station SOI (1) decreased 5.9% to $10.0 million from $10.6 million.
Digital Media
- Digital media revenue increased 4.5% to $10.8 million from $10.3 million; and
- Digital Media Operating Income (1) increased 26.5% to $2.5 million from $2.0 million.
Publishing
- Publishing revenue decreased 18.5% to $5.4 million from $6.7 million; and
- Publishing Operating Loss (1) was $6,000 as compared to publishing operating income of $0.2 million.
Included in the results for the quarter ended June 30, 2022 are:
- A $6.9 million ($5.1 million, net of tax, or $0.19 per diluted share) net gain on the disposition of assets reflects a $6.5 million pre-tax gain on the sale of land used in the company’s Denver, Colorado broadcast operations and a $0.5 million pre-tax gain on the sale of the company’s radio stations in Louisville, Kentucky that was offset with losses from various fixed asset disposals;
- A $3.9 million ($2.9 million, net of tax, or $0.11 per share) impairment charge to the value of broadcast licenses in Columbus, Dallas, Greenville, Honolulu, Orlando, Portland, and Sacramento;
- A $0.1 million ($0.1 million, net of tax) goodwill impairment charge; and
- A $0.1 million non-cash compensation charge ($0.1 million, net of tax) related to the expensing of stock options.
Included in the results for the quarter ended June 30, 2021 are:
- A $0.3 million ($0.2 million, net of tax, or $0.01 per diluted share) net gain on the disposition of assets relates to $0.5 million pre-tax gain on the sale of Singing News Magazine and Singing News Radio offset by an additional $0.1 million pre-tax loss recorded at closing on the sale of radio station WKAT-AM and FM translator in Miami, Florida; and
- A $0.1 million non-cash compensation charge ($0.1 million, net of tax) related to the expensing of stock options.
Per share numbers are calculated based on 27,570,881 diluted weighted average shares for the quarter ended June 30, 2022, and 27,232,423 diluted weighted average shares for the quarter ended June 30, 2021.
Year to Date 2022
Results
For the six months ended June 30, 2022 compared to the six months ended June 30, 2021:
Consolidated
- Total revenue increased 6.6% to $131.3 million from $123.1 million;
- Total operating expenses increased 5.2% to $119.0 million from $113.1 million;
- Operating expenses, excluding gains or losses on the disposition of assets, stock-based compensation expense, debt modification costs, changes in the estimated fair value of contingent earn-out consideration, impairments, depreciation expense and amortization expense (1) increased 9.6% to $116.7 million from $106.5 million;
- The company’s operating income increased 23.1% to $12.3 million from $10.0 million;
- The company recognized $3.9 million in film distribution income from an unconsolidated equity investment;
- The company’s net income increased 320.8% to $10.9 million, or $0.39 net income per diluted share from $2.6 million, or $0.10 net income per diluted share;
- EBITDA (1) increased 37.0% to $22.7 million from $16.5 million; and
- Adjusted EBITDA (1) increased 11.2% to $18.5 million from $16.7 million.
Broadcast
- Net broadcast revenue increased 11.1% to $100.9 million from $90.8 million;
- SOI (1) decreased 4.9% to $20.3 million from $21.3 million;
- Same station (1) net broadcast revenue increased 10.8% to $100.5 million from $90.7 million; and
- Same station SOI (1) decreased 5.4% to $20.3 million from $21.5 million.
Digital media
- Digital media revenue increased 5.7% to $21.1 million from $20.0 million; and
- Digital media operating income (1) increased 47.9% to $4.4 million from $2.9 million.
Publishing
- Publishing revenue decreased 24.6% to $9.3 million from $12.3 million; and
- Publishing Operating Loss (1) was $0.6 million compared to publishing operating income of $0.7 million.
Included in the results for the six months ended June 30, 2022 are:
- A $8.6 million ($6.4 million, net of tax, or $0.23 per diluted share) net gain on the disposition of assets relates primarily to the $6.5 million pre-tax gain on the sale of land used in the company’s Denver, Colorado broadcast operations, the $1.8 million pre-tax gain on sale of land used in the company’s Phoenix, Arizona broadcast operations, and $0.5 million pre-tax gain on the sale of the company’s radio stations in Louisville, Kentucky offset by various fixed asset disposals;
- A $3.9 million ($2.9 million, net of tax, or $0.11 per share) impairment charge to the value of broadcast licenses in Columbus, Dallas, Greenville, Honolulu, Orlando, Portland, and Sacramento;
- A $0.1 million ($0.1 million, net of tax) goodwill impairment charge;
- A $0.2 million ($0.2 million, net of tax, or $0.01 per share) charge for debt modification costs; and
- A $0.2 million non-cash compensation charge ($0.1 million, net of tax) related to the expensing of stock options.
Included in the results for the six months ended June 30, 2021 are:
- A $0.1 million net gain on the disposition of assets relating to a $0.5 million pre-tax gain on the sale of Singing News Magazine and Singing News Radio offset by $0.4 million additional loss recorded at closing on the sale of radio station WKAT-AM and FM translator in Miami, Florida and various fixed asset disposals; and
- A $0.2 million non-cash compensation charge ($0.1 million, net of tax) related to the expensing of stock options.
Per share numbers are calculated based on 27,590,644 diluted weighted average shares for the six months ended June 30, 2022, and 27,185,598 diluted weighted average shares for the six months ended June 30, 2021.
Balance Sheet
As of June 30, 2022, the company had $114.7 million outstanding on the 7.125% senior secured notes due 2028 (“2028 Notes”), $44.7 million outstanding on 6.75% senior secured notes due 2024 (“2024 Notes”), and $10,000 outstanding balance on the ABL Facility.
Acquisitions and
Divestitures
The following transactions were completed since April 1, 2022:
- On June 27, 2022, the company sold 9.3 acres of land in the Denver area for $8.2 million. The land was being used as the transmitter site for radio stations KRKS-AM and KBJD-AM and was an integral part of its broadcast operations for these stations. The company will continue broadcasting both KRKS-AM and KBJD-AM from this site.
- On May 25, 2022, the company sold radio stations WFIA-AM, WFIA-FM and WGTK-AM in Louisville, Kentucky for $4.0 million.
- On May 2, 2022, the company acquired websites and related assets of Retirement Media for $0.2 million in cash.
Pending
transactions
- On June 2, 2021, the company entered into an Asset Purchase Agreement to acquire radio station KKOL-AM in Seattle, Washington for $0.5 million. The company paid $0.1 million of cash into an escrow account and began operating the station under a Local Marketing Agreement on June 7, 2021.
Conference Call
Information
Salem will host a teleconference to discuss its results on August 4, 2022 at 4:00 p.m. Central Time. To access the teleconference, please dial (888) 770-7291, and then ask to be joined into the Salem Media Group Second Quarter 2022 call or listen via the investor relations portion of the company’s website, located at investor.salemmedia.com. A replay of the teleconference will be available through August 18, 2022 and can be heard by dialing (800) 770-2030, passcode 2413416 or on the investor relations portion of the company’s website, located at investor.salemmedia.com.
Follow us on Twitter @SalemMediaGrp.
Third Quarter
2022 Outlook
For the third quarter of 2022, the company is projecting total revenue to increase between 6% and 8% from third quarter 2021 total revenue of $66.0 million. The company is also projecting operating expenses before gains or losses on the sale or disposal of assets, stock-based compensation expense, changes in the estimated fair value of contingent earn-out consideration, impairments, depreciation expense and amortization expense to increase between 11% and 14% compared to the third quarter of 2021 non-GAAP operating expenses of $55.2 million.
A
reconciliation of non-GAAP operating expenses, excluding gains or losses
on the disposition of assets, stock-based compensation expense, changes in the
estimated fair value of contingent earn-out consideration, impairments,
depreciation expense and amortization expense to the most directly
comparable GAAP measure is not available without unreasonable efforts on a
forward-looking basis due to the potential high variability, complexity and low
visibility with respect to the charges excluded from this non-GAAP financial
measure, in particular, the change in the estimated fair value of earn-out
consideration, impairments and gains or losses from the disposition of fixed
assets. The company expects the variability of the above charges may have a
significant, and potentially unpredictable, impact on its future GAAP financial
results.
About Salem Media
Group, Inc.
Salem Media Group is America’s leading multimedia company specializing in Christian and conservative content, with media properties comprising radio, digital media and book and newsletter publishing. Each day Salem serves a loyal and dedicated audience of listeners and readers numbering in the millions nationally. With its unique programming focus, Salem provides compelling content, fresh commentary and relevant information from some of the most respected figures across the Christian and conservative media landscape. Learn more about Salem Media Group, Inc. at www.salemmedia.com, Facebook and Twitter.
Forward-Looking
Statements
Statements used in this press release that relate to future plans, events, financial results, prospects or performance are forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those anticipated as a result of certain risks and uncertainties, including but not limited to the ability of Salem to close and integrate announced transactions, market acceptance of Salem’s radio station formats, competition from new technologies, adverse economic conditions, and other risks and uncertainties detailed from time to time in Salem’s reports on Forms 10-K, 10-Q, 8-K and other filings filed with or furnished to the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Salem undertakes no obligation to update or revise any forward-looking statements to reflect new information, changed circumstances or unanticipated events.
(1) Regulation G
Management
uses certain non-GAAP financial measures defined below in communications
with investors, analysts, rating agencies, banks and others to assist such
parties in understanding the impact of various items on its financial
statements. The company uses these non-GAAP financial measures to evaluate
financial results, develop budgets, manage expenditures and as a measure of
performance under compensation programs.
The
company’s presentation of these non-GAAP financial measures should not be considered
as a substitute for or superior to the most directly comparable financial
measures as reported in accordance with GAAP.
Regulation
G defines and prescribes the conditions under which certain non-GAAP financial
information may be presented in this earnings release. The company closely
monitors EBITDA, Adjusted EBITDA, Station Operating Income (“SOI”), Same
Station net broadcast revenue, Same Station broadcast operating expenses, Same
Station Operating Income, Digital Media Operating Income, Publishing Operating
Income (Loss), and operating expenses excluding gains or losses on the
disposition of assets, stock-based compensation, changes in the estimated fair
value of contingent earn-out consideration, impairments, depreciation and
amortization, all of which are non-GAAP financial measures. The company
believes that these non-GAAP financial measures provide useful information
about its core operating results, and thus, are appropriate to enhance the
overall understanding of its financial performance. These non-GAAP financial
measures are intended to provide management and investors a more complete
understanding of its underlying operational results, trends and performance.
The
company defines Station Operating Income (“SOI”) as net broadcast revenue minus
broadcast operating expenses. The company defines Digital Media Operating
Income as net Digital Media Revenue minus Digital Media Operating Expenses. The
company defines Publishing Operating Income (Loss) as net Publishing Revenue
minus Publishing Operating Expenses. The company defines EBITDA as net income
before interest, taxes, depreciation, and amortization. The company defines
Adjusted EBITDA as EBITDA before gains or losses on the disposition of assets,
before debt modification costs, before changes in the estimated fair value of
contingent earn-out consideration, before impairments, before net miscellaneous
income and expenses, before (gain) loss on early retirement of long-term debt
and before non-cash compensation expense. SOI, Digital Media Operating Income,
Publishing Operating Income (Loss), EBITDA and Adjusted EBITDA are commonly
used by the broadcast and media industry as important measures of performance
and are used by investors and analysts who report on the industry to provide
meaningful comparisons between broadcasters. SOI, Digital Media Operating
Income, Publishing Operating Income (Loss), EBITDA and Adjusted EBITDA are not
measures of liquidity or of performance in accordance with GAAP and should be
viewed as a supplement to and not a substitute for or superior to its results
of operations and financial condition presented in accordance with GAAP. The
company’s definitions of SOI, Digital Media Operating Income, Publishing
Operating Income (Loss), EBITDA and Adjusted EBITDA are not necessarily
comparable to similarly titled measures reported by other companies.
The
company defines Same Station net broadcast revenue as broadcast revenue from
its radio stations and networks that the company owns or operates in the same
format on the first and last day of each quarter, as well as the corresponding
quarter of the prior year. The company defines Same Station broadcast operating
expenses as broadcast operating expenses from its radio stations and networks
that the company owns or operates in the same format on the first and last day
of each quarter, as well as the corresponding quarter of the prior year. The
company defines Same Station SOI as Same Station net broadcast revenue less
Same Station broadcast operating expenses. Same Station operating results
include those stations that the company owns or operates in the same format on
the first and last day of each quarter, as well as the corresponding quarter of
the prior year. Same Station operating results for a full calendar year are
calculated as the sum of the Same Station-results for each of the four quarters
of that year. The company uses Same Station operating results, a non-GAAP
financial measure, both in presenting its results to stockholders and the
investment community, and in its internal evaluations and management of the
business. The company believes that Same Station operating results provide a
meaningful comparison of period over period performance of its core broadcast
operations as this measure excludes the impact of new stations, the impact of
stations the company no longer owns or operates, and the impact of stations
operating under a new programming format. The company’s presentation of Same
Station operating results are not intended to be considered in isolation or as
a substitute for the financial information prepared and presented in accordance
with GAAP. The company’s definition of Same Station operating results is not
necessarily comparable to similarly titled measures reported by other
companies.
For
all non-GAAP financial measures, investors should consider the limitations
associated with these metrics, including the potential lack of comparability of
these measures from one company to another.
The
Supplemental Information tables that follow the condensed consolidated financial
statements provide reconciliations of the non-GAAP financial measures that the
company uses in this earnings release to the most directly comparable measures
calculated in accordance with GAAP. The company uses non-GAAP financial
measures to evaluate financial performance, develop budgets, manage
expenditures, and determine employee compensation. The company’s presentation
of this additional information is not to be considered as a substitute for or
superior to the directly comparable measures as reported in accordance with
GAAP.
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Salem Media Group, Inc.
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Condensed Consolidated Statements of Operations
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(in thousands, except share and per share data)
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Three Months Ended
|
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Six Months Ended
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|
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June 30,
|
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June 30,
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|
|
|
2021
|
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2022
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2021
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2022
|
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(Unaudited)
|
|
Net broadcast revenue
|
|
$
|
46,783
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$
|
52,452
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|
$
|
90,831
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$
|
100,884
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Net digital media revenue
|
|
|
10,339
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|
|
10,804
|
|
|
19,958
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|
|
21,104
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Net publishing revenue
|
|
|
6,660
|
|
|
5,426
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|
|
12,346
|
|
|
9,303
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Total revenue
|
|
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63,782
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|
|
68,682
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|
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123,135
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|
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131,291
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Operating expenses:
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Broadcast operating expenses
|
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36,162
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|
|
42,489
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|
|
69,505
|
|
|
80,610
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|
Digital media operating expenses
|
|
|
8,338
|
|
|
8,273
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|
|
17,011
|
|
|
16,746
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Publishing operating expenses
|
|
|
6,426
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|
|
5,432
|
|
|
11,631
|
|
|
9,899
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Unallocated corporate expenses
|
|
|
4,192
|
|
|
4,781
|
|
|
8,480
|
|
|
9,591
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|
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Debt modification costs
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
248
|
|
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Depreciation and amortization
|
|
|
3,286
|
|
|
3,190
|
|
|
6,456
|
|
|
6,466
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|
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Change in the estimated fair value of contingent earn-out consideration
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—
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|
|
—
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|
|
—
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(5)
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Impairment of indefinite-lived long-term assets other than goodwill
|
|
|
—
|
|
|
3,935
|
|
|
—
|
|
|
3,935
|
|
|
Impairment of goodwill
|
|
|
—
|
|
|
127
|
|
|
—
|
|
|
127
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Net (gain) loss on the disposition of assets
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(263)
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(6,893)
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55
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|
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(8,628)
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Total operating expenses
|
|
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58,141
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|
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61,354
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113,138
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118,989
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Operating income
|
|
|
5,641
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|
|
7,328
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|
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9,997
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|
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12,302
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Other income (expense):
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Interest income
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|
—
|
|
|
149
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1
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|
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149
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Interest expense
|
|
|
(3,935)
|
|
|
(3,389)
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|
|
(7,861)
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|
|
(6,783)
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Gain (loss) on early retirement of long-term debt
|
|
|
—
|
|
|
35
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|
|
—
|
|
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(18)
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|
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Earnings from equity method investment
|
|
|
—
|
|
|
3,913
|
|
|
—
|
|
|
3,913
|
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Net miscellaneous income and (expenses)
|
|
|
63
|
|
|
(1)
|
|
|
85
|
|
|
—
|
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Net income before income taxes
|
|
|
1,769
|
|
|
8,035
|
|
|
2,222
|
|
|
9,563
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|
Benefit from income taxes
|
|
|
(488)
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|
|
(1,082)
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|
|
(358)
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|
|
(1,293)
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Net income
|
|
$
|
2,257
|
|
$
|
9,117
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|
$
|
2,580
|
|
$
|
10,856
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|
|
|
|
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|
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Basic income per share Class A and Class B common stock
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$
|
0.08
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|
$
|
0.33
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|
$
|
0.10
|
|
$
|
0.39
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Diluted income per share Class A and Class B common stock
|
|
$
|
0.08
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|
$
|
0.33
|
|
$
|
0.10
|
|
$
|
0.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Basic weighted average Class A and Class B common stock shares outstanding
|
|
|
26,869,145
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|
|
27,214,787
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|
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26,802,892
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|
|
27,196,081
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Diluted weighted average Class A and Class B common stock shares outstanding
|
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|
27,232,423
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|
|
27,570,881
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27,185,598
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|
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27,590,644
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Salem Media Group, Inc.
|
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Condensed Consolidated Balance Sheets
|
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(in thousands)
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|
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December 31, 2021
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June 30, 2022
|
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|
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(Unaudited)
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Assets
|
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Cash
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$
|
1,785
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$
|
2,540
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Trade accounts receivable, net
|
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25.663
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|
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29,271
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Other current assets
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14,066
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|
|
15,856
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Property and equipment, net
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79,339
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79,713
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Operating and financing lease right-of-use assets
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43,665
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44,110
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Intangible assets, net
|
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346,438
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|
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339,160
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Deferred financing costs
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|
843
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|
|
774
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Other assets
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4,313
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|
|
3,845
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Total assets
|
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$
|
516,112
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$
|
515,269
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|
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|
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Liabilities and
Stockholders’ Equity
|
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|
|
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Current liabilities
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$
|
51,455
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|
$
|
56,161
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Long-term debt
|
|
|
170,581
|
|
|
155,595
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Operating and financing lease liabilities, less current portion
|
|
|
42,273
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|
|
42,652
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|
Deferred income taxes
|
|
|
67,012
|
|
|
65,808
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|
Other liabilities
|
|
|
6,580
|
|
|
5,718
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|
Stockholders’ Equity
|
|
|
178,211
|
|
|
189,335
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|
Total liabilities and stockholders’ equity
|
|
$
|
516,112
|
|
$
|
515,269
|
|
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SALEM MEDIA GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’
EQUITY
(in thousands,
except share and per share data)
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Class A
|
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Class B
|
|
|
|
|
|
|
|
|
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Common Stock
|
|
Common Stock
|
|
Additional
|
|
|
|
|
|
|
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|
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Paid-In
|
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Accumulated
|
|
Treasury
|
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Shares
|
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Amount
|
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Shares
|
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Amount
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Capital
|
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Deficit
|
|
Stock
|
|
Total
|
|
Stockholders’
equity, December 31, 2020
|
|
23,447,317
|
|
$
|
227
|
|
5,553,696
|
|
$
|
56
|
|
$
|
247,025
|
|
$
|
(78,023
|
)
|
|
$
|
(34,006
|
)
|
|
$
|
135,279
|
|
Stock-based compensation
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
78
|
|
|
—
|
|
|
|
—
|
|
|
|
78
|
|
Options
exercised
|
|
185,782
|
|
|
2
|
|
—
|
|
|
—
|
|
|
390
|
|
|
—
|
|
|
|
—
|
|
|
|
392
|
|
Net income
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
323
|
|
|
|
—
|
|
|
|
323
|
|
Stockholders’
equity,
March 31, 2021
|
|
23,633,099
|
|
$
|
229
|
|
5,553,696
|
|
$
|
56
|
|
$
|
247,493
|
|
$
|
(77,700
|
)
|
|
$
|
(34,006
|
)
|
|
$
|
136,072
|
|
Stock-based compensation
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
84
|
|
|
—
|
|
|
|
—
|
|
|
|
84
|
|
Net income
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,257
|
|
|
|
—
|
|
|
|
2,257
|
|
Stockholders’ equity, June 30, 2021
|
|
23,633,099
|
|
$
|
229
|
|
5,553,696
|
|
$
|
56
|
|
$
|
247,577
|
|
$
|
(75,443
|
)
|
|
$
|
(34,006
|
)
|
|
$
|
138,413
|
|
|
|
Class A
|
|
Class B
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock
|
|
Common Stock
|
|
Additional
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Paid-In
|
|
Accumulated
|
|
Treasury
|
|
|
|
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Capital
|
|
Deficit
|
|
Stock
|
|
Total
|
|
Stockholders’
equity, December 31, 2021
|
|
23,922,974
|
|
$
|
232
|
|
5,553,696
|
|
$
|
56
|
|
$
|
248,438
|
|
$
|
(36,509
|
)
|
|
$
|
(34,006
|
)
|
|
$
|
178,211
|
|
Stock-based compensation
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
106
|
|
|
—
|
|
|
|
—
|
|
|
|
106
|
|
Options
exercised
|
|
40,913
|
|
|
—
|
|
—
|
|
|
—
|
|
|
94
|
|
|
—
|
|
|
|
—
|
|
|
|
94
|
|
Lapse of restricted shares
|
|
14,854
|
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Net income
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,739
|
|
|
|
—
|
|
|
|
1,739
|
|
Stockholders’ equity,
March 31, 2022
|
|
23,978,741
|
|
$
|
232
|
|
5,553,696
|
|
$
|
56
|
|
$
|
248,638
|
|
$
|
(34,770
|
)
|
|
$
|
(34,006
|
)
|
|
$
|
180,150
|
|
Stock-based
compensation
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
68
|
|
|
—
|
|
|
|
—
|
|
|
|
68
|
|
Net income
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,117
|
|
|
|
—
|
|
|
|
9,117
|
|
Stockholders’
equity, June 30, 2022
|
|
23,978,741
|
|
$
|
232
|
|
5,553,696
|
|
$
|
56
|
|
$
|
248,706
|
|
$
|
(25,653
|
)
|
|
$
|
(34,006
|
)
|
|
$
|
189,335
|
|
|
|
Salem Media Group, Inc.
|
|
Supplemental Information
|
|
(in thousands)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
|
(Unaudited)
|
|
Reconciliation of Total Operating Expenses to
Operating Expenses excluding Debt Modification Costs, Depreciation and
Amortization Expense, Changes in the Estimated Fair Value of Contingent
Earn-out Consideration, Impairments, Gains or Losses on the Disposition of
Assets and Stock-based Compensation Expense (Recurring Operating Expenses)
|
|
Operating Expenses
|
|
$
|
58,141
|
|
$
|
61,354
|
|
$
|
113,138
|
|
$
|
118,989
|
|
Less debt modification costs
|
|
|
|
|
|
(20)
|
|
|
|
|
|
(248)
|
|
Less depreciation and amortization expense
|
|
|
(3,286)
|
|
|
(3,190)
|
|
|
(6,456)
|
|
|
(6,466)
|
|
Less change in estimated fair value of contingent earn-out
consideration
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
Less impairment of indefinite-lived long-term assets other
than goodwill
|
|
|
—
|
|
|
(3,935)
|
|
|
—
|
|
|
(3,935)
|
|
Less impairment of goodwill
|
|
|
—
|
|
|
(127)
|
|
|
—
|
|
|
(127)
|
|
Less net gain (loss) on the disposition of assets
|
|
|
263
|
|
|
6,893
|
|
|
(55)
|
|
|
8,628
|
|
Less stock-based compensation expense
|
|
|
(84)
|
|
|
(68)
|
|
|
(162)
|
|
|
(174)
|
|
Total Recurring
Operating Expenses
|
|
$
|
55,034
|
|
$
|
60,907
|
|
$
|
106,465
|
|
$
|
116,672
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Broadcast Revenue to Same
Station Net Broadcast Revenue
|
|
Net broadcast revenue
|
|
$
|
46,783
|
|
$
|
52,452
|
|
$
|
90,831
|
|
$
|
100,884
|
|
Net broadcast revenue – acquisitions
|
|
|
—
|
|
|
(14)
|
|
|
—
|
|
|
(247)
|
|
Net broadcast revenue – dispositions
|
|
|
(96)
|
|
|
(56)
|
|
|
(113)
|
|
|
(49)
|
|
Net broadcast revenue – format change
|
|
|
—
|
|
|
—
|
|
|
(65)
|
|
|
(111)
|
|
Same Station net broadcast revenue
|
|
$
|
46,687
|
|
$
|
52,382
|
|
$
|
90,653
|
|
$
|
100,477
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of Broadcast Operating Expenses to Same Station Broadcast Operating Expenses
|
|
Broadcast operating expenses
|
|
$
|
36,162
|
|
$
|
42,489
|
|
$
|
69,505
|
|
$
|
80,610
|
|
Broadcast operating expenses – acquisitions
|
|
|
—
|
|
|
(63)
|
|
|
(1)
|
|
|
(279)
|
|
Broadcast operating expenses – dispositions
|
|
|
(81)
|
|
|
(24)
|
|
|
(214)
|
|
|
(48)
|
|
Broadcast operating expenses – format change
|
|
|
—
|
|
|
—
|
|
|
(131)
|
|
|
(132)
|
|
Same Station broadcast operating expenses
|
|
$
|
36,081
|
|
$
|
42,402
|
|
$
|
69,159
|
|
$
|
80,151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of SOI to Same Station SOI
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Station Operating Income
|
|
$
|
10,621
|
|
$
|
9,963
|
|
$
|
21,326
|
|
$
|
20,274
|
|
Station operating (income) loss – acquisitions
|
|
|
—
|
|
|
49
|
|
|
1
|
|
|
32
|
|
Station operating (income) loss – dispositions
|
|
|
(15)
|
|
|
(32)
|
|
|
101
|
|
|
(1)
|
|
Station operating (income) loss – format change
|
|
|
—
|
|
|
—
|
|
|
66
|
|
|
21
|
|
Same Station – Station Operating Income
|
|
$
|
10,606
|
|
$
|
9,980
|
|
$
|
21,494
|
|
$
|
20,326
|
|
|
|
Salem Media Group, Inc.
|
|
Supplemental Information
|
|
(in thousands)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
|
(Unaudited)
|
|
Calculation of Station Operating Income, Digital
Media Operating Income and Publishing Operating Income (Loss)
|
|
Net broadcast revenue
|
|
$
|
46,783
|
|
$
|
52,452
|
|
$
|
90,831
|
|
$
|
100,884
|
|
Less broadcast operating expenses
|
|
|
(36,162)
|
|
|
(42,489)
|
|
|
(69,505)
|
|
|
(80,610)
|
|
Station Operating Income
|
|
$
|
10,621
|
|
$
|
9,963
|
|
$
|
21,326
|
|
$
|
20,274
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net digital media revenue
|
|
$
|
10,339
|
|
$
|
10,804
|
|
$
|
19,958
|
|
$
|
21,104
|
|
Less digital media operating expenses
|
|
|
(8,338)
|
|
|
(8,273)
|
|
|
(17,011)
|
|
|
(16,746)
|
|
Digital Media Operating Income
|
|
$
|
2,001
|
|
$
|
2,531
|
|
$
|
2,947
|
|
$
|
4,358
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net publishing revenue
|
|
$
|
6,660
|
|
$
|
5,426
|
|
$
|
12,346
|
|
$
|
9,303
|
|
Less publishing operating expenses
|
|
|
(6,426)
|
|
|
(5,432)
|
|
|
(11,631)
|
|
|
(9,899)
|
|
Publishing Operating Income (Loss)
|
|
$
|
234
|
|
$
|
(6)
|
|
$
|
715
|
|
$
|
(596)
|
The company defines EBITDA (1) as net income before interest, taxes, depreciation, and amortization. The table below presents a reconciliation of EBITDA (1) to Net Income (Loss), the most directly comparable GAAP measure. EBITDA (1) is a non-GAAP financial performance measure that is not to be considered a substitute for or superior to the directly comparable measures reported in accordance with GAAP. The company defines Adjusted EBITDA (1) as EBITDA (1) before gains or losses on the disposition of assets, before debt modification costs, before changes in the estimated fair value of contingent earn-out consideration, before impairments, before net miscellaneous income and expenses, before (gain) loss on early retirement of long-term debt and before non-cash compensation expense. The table below presents a reconciliation of Adjusted EBITDA (1) to Net Income (Loss), the most directly comparable GAAP measure. Adjusted EBITDA (1) is a non-GAAP financial performance measure that is not to be considered a substitute for or superior to the directly comparable measures reported in accordance with GAAP.
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
|
|
(Unaudited)
|
|
Net income
|
|
$
|
2,257
|
|
|
$
|
9,117
|
|
|
$
|
2,580
|
|
|
$
|
10,856
|
|
|
Plus interest expense, net of capitalized interest
|
|
|
3,935
|
|
|
|
3,389
|
|
|
|
7,861
|
|
|
|
6,783
|
|
|
Plus benefit from income taxes
|
|
|
(488
|
)
|
|
|
(1,082
|
)
|
|
|
(358
|
)
|
|
|
(1,293
|
)
|
|
Plus depreciation and amortization
|
|
|
3,286
|
|
|
|
3,190
|
|
|
|
6,456
|
|
|
|
6,466
|
|
|
Less interest income
|
|
|
—
|
|
|
|
(149
|
)
|
|
|
(1
|
)
|
|
|
(149
|
)
|
|
EBITDA
|
|
$
|
8,990
|
|
|
$
|
14,465
|
|
|
$
|
16,538
|
|
|
$
|
22,663
|
|
|
Plus net (gain) loss on the disposition of assets
|
|
|
(263
|
)
|
|
|
(6,893
|
)
|
|
|
55
|
|
|
|
(8,628
|
)
|
|
Plus change in the estimated fair value of contingent earn-out consideration
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(5
|
)
|
|
Plus debt modification costs
|
|
|
—
|
|
|
|
20
|
|
|
|
|
|
248
|
|
|
Plus impairment of indefinite-lived long-term assets other than goodwill
|
|
|
—
|
|
|
|
3,935
|
|
|
|
—
|
|
|
|
3,935
|
|
|
Plus impairment of goodwill
|
|
|
—
|
|
|
|
127
|
|
|
|
—
|
|
|
|
127
|
|
|
Plus net miscellaneous (income) and expenses
|
|
|
(63
|
)
|
|
|
1
|
|
|
|
(85
|
)
|
|
|
—
|
|
|
Plus (gain) loss on early retirement of long- term debt
|
|
|
—
|
|
|
|
(35
|
)
|
|
|
—
|
|
|
|
18
|
|
|
Plus non-cash stock-based compensation
|
|
|
84
|
|
|
|
68
|
|
|
|
162
|
|
|
|
174
|
|
|
Adjusted EBITDA
|
|
$
|
8,748
|
|
|
$
|
11,688
|
|
|
$
|
16,670
|
|
|
$
|
18,532
|
|
|
|
|
|
|
|
|
|
|
Outstanding at
|
|
|
Applicable
|
|
Selected Debt Data
|
|
June 30, 2022
|
|
|
Interest Rate
|
|
Senior Secured Notes due 2028 (1)
|
|
$
|
114,731,000
|
|
|
7.125
|
%
|
|
Senior Secured Notes due 2024 (2)
|
|
$
|
44,685,000
|
|
|
6.750
|
%
|
|
(1) $114.7 million notes with semi-annual interest payments at an annual rate of 7.125%.
|
|
(2) $44.7 million notes with semi-annual interest payments at an annual rate of 6.750%.
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20220802006191/en/
Company Contact:
Evan D. Masyr
Executive Vice President and Chief Financial Officer
(805) 384-4512
evan@salemmedia.com
Source: Salem Media Group, Inc.
Released August
4, 2022
View original content to download multimedia:
