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Wednesday, June 3, 2020
Salem Media (SALM)
A Closer Look; Raising Estimates
Salem Media Group is America’s leading radio broadcaster, Internet content provider, and magazine and book publisher targeting audiences interested in Christian and family-themed content and conservative values. In addition to its radio properties, Salem owns Salem Radio Network, which syndicates talk, news and music programming to approximately 2700 affiliates; Salem Radio Representatives, a national radio advertising sales force; Salem Web Network, a leading Internet provider of Christian content and online streaming; and Salem Publishing, a leading publisher of Christian themed magazines. Salem owns and operates 115 radio stations, with 73 stations in the nation’s top 25 top markets – and 25 in the top 10. Each of our radio properties has a full portfolio of broadcast and digital marketing opportunities.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Raising 2020 estimates. Upon further review post the company’s 10Q filing, we are raising our 2020 cash flow estimate from $11.6 million to $12.7 million. We are encouraged by the intermediate term cost reduction strategies that provide positive upside cash flow surprise potential given the prospects of improving revenue trends.
Cost reductions are significant. Payroll reductions of 5% to 10%, cutback in 401K contributions, and layoffs will save the company roughly $825,000 per month. We believe that the magnitude of these cost reductions are not fully reflected in our estimates and…
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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst
certification and important disclosures included in the full report.
NOTE: investment decisions should not be based upon the content of
this research summary. Proper due diligence is required before
making any investment decision.