IRVING, Texas–(BUSINESS WIRE)– Salem Media Group, Inc. (NASDAQ: SALM) announced today that it entered into an agreement to sell its Salem Church Products business to Gloo, LLC for $30 million. When the transaction closes, scheduled for November 1, the parties will also enter into a $10 million multi-year agreement for Salem to advertise the Gloo platform’s products and services across Salem’s radio and digital platform that serves the Christian audience.
Salem Church Products creates and distributes resources for churches and ministries in the areas of church media, worship, children’s ministry, preaching, teaching and employment through online resources including WorshipHouse Media, SermonSearch, ChurchStaffing, Children’s Ministry Deals and many others.
Salem’s Chief Operating Officer David Evans said, “We are proud of the Church Products business we have built over the years. What started with a single website – SermonSearch – has grown into a successful organization providing valuable resources and services to local churches and their pastors. Any time we look to sell a business, we look for organizations that share our passion and that can take that business to the next level. Gloo is just such an organization and we couldn’t be more thrilled.”
Scott Beck, Chief Executive Officer of Gloo, said, “Salem has been a tremendous partner for several years. We share their mission to equip and support the mission of the Church. Welcoming the Salem Church Products collection of brands to the Gloo platform will accelerate our ability to connect churches with a broad network of great products and producers in everything from Sunday weekend experiences, children’s resourcing, staffing and digital evangelism/discipleship. We are excited to support the Salem Church Products’ great leadership team as they accelerate their ability to serve and expand their network.”
ABOUT SALEM MEDIA GROUP:
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.
IRVING, Texas–(BUSINESS WIRE)– Salem Media Group, Inc. (NASDAQ: SALM) announced today that Regnery Publishing signed a book deal with Liz Truss, the 56th Prime Minister of the United Kingdom. Ten Years to Save the West is scheduled to publish on April 16, 2024.
Around the world, many supposedly conservative political parties have been captured by the same left-wing influences that set the agenda and frame the debate in so many institutions, including the media, academia and the corporate world. Drawing on her ten years of service in Tory governments – when she often found herself to be the only conservativein the room – the scrappy champion of limited government and individual freedom exposes the threat of the massive, unaccountable administrative state and the complacent political and corporate establishment.
Ahead of the Presidential election in the fall of 2024, Truss will in particular sound a timely alarm bell that failing to learn from her experiences in the UK – where the state is now spending 47% of national income – could lead to the same mistakes being made in the U.S., with disastrous consequences for American families.
Peppered with newsworthy anecdotes from her time in public life – such as her memorable last meeting with Queen Elizabeth II, her challenges to Vladimir Putin and Xi Jinping as Foreign Secretary, her encounters with the Trump administration as Trade Minister, and her dismay at the political class’s attempts to betray Brexit – this book will be a timely warning about the perils to conservatism posed by the global left in the years ahead.
Liz Truss said, “After more than ten years as a British government minister, I’ve seen up close the threats posed to global democracy. Across the free world, we face massive, unaccountable administrative states and complacent political and corporate establishments which are not only putting the brakes on economic growth, but also hampering our ability to stand up to authoritarian regimes like China and Russia. I want to share the lessons from my experience in government and those international meetings where I was often the only conservative in the room and demonstrate that we have stark choices to make if we wish to avoid a managed decline of the Western architecture that has presided over generations of relative peace and prosperity.”
The UK edition of this book will be published by Biteback Publishing.
ABOUT LIZ TRUSS:
Liz Truss has been the Conservative Member of Parliament for South West Norfolk since 2010 and served as the 56th Prime Minister of the United Kingdom, during which time she led the nation in mourning Her Late Majesty Queen Elizabeth II as King Charles III acceded to the throne. She continuously held ministerial office for more than ten years between 2012 and 2022 and sat at the Cabinet table in six different roles prior to becoming Prime Minister.
ABOUT REGNERY PUBLISHING:
Regnery Publishing, a Salem Media Group company, is the country’s preeminent publisher of conservative books. In its seventy-five years, Regnery has published many of the seminal works of the conservative movement, including Russell Kirk’s The Conservative Mind and William F. Buckley Jr.’s God and Man at Yale. More recently, Regnery has published bestsellers by Mollie Hemingway, George Gilder, Dennis Prager, Josh Hawley, Ted Cruz, and David Limbaugh.
ABOUT SALEM MEDIA GROUP:
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.
IRVING, Texas–(BUSINESS WIRE)– Salem Media Group, Inc. (NASDAQ: SALM) announced today the launch of the podcast show Hearing Jesus for Kids on Salem-owned LifeAudio Podcast Network. The Hearing Jesus for Kids podcast is a daily audio program designed to help kids explore the fascinating stories of the Bible and apply the lessons they learn to their everyday lives. Following the success of the Hearing Jesus podcast, which consistently ranks in the top 200 charts on Apple Podcasts for Religion & Spirituality, host Rachael Groll has expanded her creativity and knowledge to reach the next generation of Christians with this new companion show.
“Sometimes people think that the Bible is just for adults, but God actually really wants kids to know about Him,” Rachael Groll said. “On this podcast, we are going to learn all about God’s big story and how he shows Himself to us through the Bible.”
The pilot episode, available on all podcast platforms, uncovers hidden stories of brave heroes, epic battles, and amazing miracles that set the stage for the arrival of Jesus.
ABOUT RACHAEL GROLL:
Rachael Groll is the host of the Hearing Jesus podcast, one of Apple Podcasts’ most successful shows. As a pastor, missionary and author, her greatest calling in life is to help women learn how to hear the Lord more clearly in their lives. Rachael has served both locally and globally, focusing on evangelism and discipleship, and counts it a privilege to share God’s Word on the podcast every week. Rachael has her undergraduate degree in Ministerial Leadership from Southeastern University and received her MA in Bible Exposition at Biola University in May. Rachael is the author of She Hears: Learning to Listen to Jesus as well as numerous other titles. She and her husband, Tim, live in rural Pennsylvania and have three beautiful daughters. Find more from Rachael at her website, shehears.org.
ABOUT LIFEAUDIO PODCAST NETWORK:
For more than 20 years, Salem Web Network has delivered inspirational Christian content all over the world through some of the most recognizable brands in Christian media. Now, with LifeAudio Podcast Network, we are proud to offer a suite of captivating and original new audio content from trusted pastors, authors, and ministry leaders. Home to top-charting shows like Your Daily Prayer, Abide Bible Sleep Meditation and The Becket Cook Show, LifeAudio is proud to bring entertaining, life-changing, and family-friendly podcasts for the engaged, evangelical Christian audience. Learn more about us on Facebook, Twitter/X, Instagram and TikTok.
ABOUT SALEM MEDIA GROUP:
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.
IRVING, Texas–(BUSINESS WIRE)– Salem Media Group, Inc. (NASDAQ: SALM) announced today that it entered into an agreement to transfer the ownership of its Greenville-Spartanburg stations, WGTK-FM, WRTH-FM, and WLTE-FM to Educational Media Foundation (EMF). Salem Media CEO David Santrella stated, “We have enjoyed our years in the Greenville-Spartanburg market but have made the strategic decision to divest our interests there. As we do, we are grateful to be able to place these signals in the hands of Educational Media Foundation (EMF) who share a like-minded mission with Salem through their music programming. We are also thankful to our Greenville-Spartanburg staff for their many years of service.”
ABOUT SALEM MEDIA GROUP:
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.
IRVING, Texas–(BUSINESS WIRE)– Salem Media Group, Inc. (the “company”) (Nasdaq: SALM) released its results for the three and six months ended June 30, 2023.
Second Quarter 2023 Results
For the three months ended June 30, 2023 compared to the three months ended June 30, 2022:
Consolidated
Total revenue decreased 4.2% to $65.8 million from $68.7 million;
Total operating expenses increased 13.9% to $69.9 million from $61.4 million;
Operating expenses, excluding stock-based compensation expense, debt modification costs, gains and losses on the sale or disposition of assets, impairments, depreciation expense and amortization expense (1) increased 5.2% to $63.1 million from $60.0 million;
The company had an operating loss of $4.1 million as compared to operating income of $7.3 million;
The company had a net loss of $7.1 million, or $0.26 net loss per share, compared to net income of $9.1 million, or $0.33 net income per diluted share;
EBITDA (1) decreased to $(0.6) million from $14.5 million; and
Adjusted EBITDA (1) decreased 77.2% to $2.7 million from $11.7 million.
Broadcast
Net broadcast revenue decreased 5.3% to $49.7 million from $52.5 million;
Station Operating Income (“SOI”) (1) decreased 43.5% to $6.2 million from $10.9 million;
Same Station (1) net broadcast revenue decreased 5.8% to $49.4 million from $52.4 million; and
Same Station SOI (1) decreased 37.7% to $6.8 million from $10.9 million.
Digital Media
Digital media revenue increased 0.5% to $10.9 million from $10.8 million; and
Digital Media Operating Income (1) decreased 27.5% to $1.8 million from $2.5 million.
Publishing
Publishing revenue decreased 3.5% to $5.2 million from $5.4 million; and
Publishing Operating Loss (1) increased to $0.8 million from $6,000.
Included in the results for the three months ended June 30, 2023 are:
A $1.8 million ($1.4 million, net of tax, or $0.05 per share) impairment charge to the value of goodwill in Townhall;
A $1.1 million ($0.8 million, net of tax, or $0.03 per share) impairment charge to the value of broadcast licenses in Portland and San Francisco;
A $0.1 million ($0.1 million, net of tax) net loss on the disposition of assets; and
A $0.1 million non-cash compensation charge ($0.1 million, net of tax) related to the expense of stock options.
Included in the results for the three months 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 by 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 ($0.1 million, net of tax) non-cash compensation charge related to the expense of stock options.
Per share numbers are calculated based on 27,216,787 diluted weighted average shares for the three months ended June 30, 2023, and 27,570,881 diluted weighted average shares for the three months ended June 30, 2022.
Year to Date 2023 Results
For the six months ended June 30, 2023 compared to the six months ended June 30, 2022:
Consolidated
Total revenue decreased 1.5% to $129.3 million from $131.3 million;
Total operating expenses increased 15.6% to $137.5 million from $119.0 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 8.2% to $125.2 million from $115.7 million;
The company had an operating loss of $8.3 million as compared to operating income of $12.3 million;
The company recognized $3.9 million in film distribution income from an unconsolidated equity investment in the six months ended June 30, 2022;
The company had a net loss of $12.2 million, or $0.45 net loss per share, compared to net income of $10.9 million, or $0.39 net income per diluted share;
EBITDA (1) decreased to $(1.2) million from $22.7 million; and
Adjusted EBITDA (1) decreased 78.1% to $4.1 million from $18.5 million.
Broadcast
Net broadcast revenue decreased 2.8% to $98.0 million from $100.9 million;
SOI (1) decreased 44.9% to $11.7 million from $21.2 million;
Same station (1) net broadcast revenue decreased 3.2% to $97.5 million from $100.8 million; and
Same station SOI (1) decreased 39.6% to $12.8 million from $21.2 million.
Digital media
Digital media revenue increased 1.3% to $21.4 million from $21.1 million; and
Digital media operating income (1) decreased 23.1% to $3.4 million from $4.4 million.
Publishing
Publishing revenue increased 6.1% to $9.9 million from $9.3 million; and
Publishing Operating Loss (1) increased 156.5% to $1.5 million from $0.6 million.
Included in the results for the six months ended June 30, 2023 are:
A $3.2 million ($2.4 million, net of tax, or $0.09 per share) impairment charge to the value of broadcast licenses in Miami, Portland and San Francisco;
A $1.8 million ($1.4 million, net of tax, or $0.05 per share) impairment charge to the value of goodwill in Townhall;
A $0.1 million loss on the early retirement of long-term debt associated with the 2024 Notes; and
A $0.2 million ($0.1 million, net of tax, or $0.01 per share) non-cash compensation charge related to the expense of stock options.
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 ($0.1 million, net of tax) non-cash compensation charge related to the expense of stock options.
Per share numbers are calculated based on 27,216,787 diluted weighted average shares for the six months ended June 30, 2023, and 27,590,644 diluted weighted average shares for the six months ended June 30, 2022.
Balance Sheet
As of June 30, 2023, the company had $159.4 million outstanding on the 7.125% senior secured notes due 2028 (“2028 Notes”) and $22.6 million outstanding on the ABL facility.
Effective June 30, 2023, the company was not in compliance with its fixed charge coverage ratio. On August 7, 2023 the company signed a forbearance whereby the bank agreed not to exercise remedies on the default during the month of August. Additionally, the notional amount of the revolver was reduced from $30.0 million to $25.0 million with a minimum availability of $1.0 million. Finally, the interest rate associated with the revolver increased by two percentage points effective July 1, 2023 through the date of the forbearance amendment.
Acquisitions and Divestitures
The following transactions were completed since April 1, 2023:
On July 21, 2023 the company closed the sale of radio station KNTS-AM in Seattle, Washington for $0.2 million.
On July 13, 2023 the company closed the sale of radio station KLFE-AM in Seattle, Washington for $0.5 million. Radio station KLFE-AM was being programmed under a Time Brokerage Agreement (“TBA”) as of August 1, 2022.
On May 25, 2023, the company entered into a rental income purchase agreement with a related party to sell the assignment of the rents from its Greenville, South Carolina radio transmitter site for $3.5 million commencing on June 1, 2023 resulting in a pre-tax gain of $3.3 million.
Pending transactions:
On June 29, 2023 the company entered into an agreement to sell radio station KSAC-FM in Sacramento, California for $1.0 million subject to approval of the Federal Communications Commission (“FCC”). Radio station KSAC-FM will begin being programmed under a TBA on August 1, 2023. Based on its plan to sell the station, the company recorded an estimated pre-tax loss on the sale of assets of $3.3 million at June 30, 2023, reflecting the sales price as compared to the carrying value of the assets and the estimated cost to sell. The company expects to close the sale in the fourth quarter of this year.
Conference Call Information
The company will host a teleconference to discuss its results on August 8, 2023 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 2023 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 22, 2023 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 2023 Outlook
For the third quarter of 2023, the company is projecting total revenue to decline between 3% and 5% from the third quarter 2022 total revenue of $66.9 million. Excluding the impact of the 2022 political revenue, the company would project total revenue to decline between 1% and 3%. The company is also projecting operating expenses before gains or losses on the sale or disposal of assets, stock-based compensation expense, legal settlement, changes in the estimated fair value of contingent earn-out consideration, impairments, depreciation expense and amortization expense (“Recurring Operating Expenses”) to be between a decrease of 1% and increase of 2% compared to the third quarter of 2022 Recurring Operating Expenses of $60.8 million.
A reconciliation of Recurring Operating Expenses (a non-GAAP measure) 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 the company to close and integrate announced transactions, market acceptance of the company’s radio station formats, competition from new technologies, inflation and other adverse economic conditions, and other risks and uncertainties detailed from time to time in the company’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. The company 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 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 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 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 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 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 operating 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 is 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.
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.
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.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Soft Q2 results. Revenues of $65.8 million were better than our $64.2 million estimate, driven by improved Digital Media and Publishing revenue. Adj. EBITDA of $2.7 million was below our $3.8 million estimate, reflecting higher than expected expenses as the company continues heightened investments to ramp its digital businesses.
Lowering full year 2023 adj. EBITDA estimate. Flowing through the Q2 results and our Q3 and Q4 revisions, we are largely maintaining our full year 2023 revenue estimate at $261.6 million and lowering our full year 2023 adj. EBITDA estimate from $18.5 million to $16.1 million. We are maintaining our full year 2024 adj. EBITDA estimate of $26.9 million at this time, which conservatively anticipates an influx of roughly $6.8 million in high margin Political advertising.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
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.
IRVING, Texas–(BUSINESS WIRE)– Salem Media Group, Inc. (NASDAQ: SALM) announced today that it plans to report its second quarter 2023 financial results after the market closes on August 8, 2023.
The company also plans to host a teleconference to discuss its results on August 8, 2023, at 4:00 PM Central Time. To access the teleconference, please dial (888) 770-7291, and then ask to be joined to the Salem Media Group Second Quarter 2023 call or listen to the webcast.
A replay of the teleconference will be available through August 22, 2023, and can be heard by dialing (800) 770-2030 – replay pin number 2413416, or on the investor relations portion of the company’s website, located at investor.salemmedia.com.
ABOUT SALEM MEDIA GROUP:
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.
IRVING, Texas–(BUSINESS WIRE)– Salem Media Group, Inc. (NASDAQ: SALM) announced today some changes to the management structure of the company in a limited number of markets. These changes provide some cost savings and will allow Salem’s most seasoned leaders to expand their impact on the performance of the company.
Terry Fahy, Regional VP/GM for Los Angeles, will now also oversee Oxnard.
Steve Brodsky, GM for San Diego, will also manage Honolulu.
Dennis Hayes, GM for Portland, will now oversee Seattle as well.
Kevin Isaacs, GM for Cleveland, will now also manage Pittsburgh.
Mark Durkin, Regional VP/GM for Sacramento, will also manage Phoenix.
Earlier this year, Salem made similar changes with:
Carolyn Cassidy managing both Tampa and Columbus.
John Gallagher managing both Chicago and Little Rock.
In some cases, the former GM will stay on in a sales/sales management role.
Salem CEO, David Santrella, said “These changes were made to allow Salem to continue to innovate and invest in our business and to allow the very best leaders to oversee our radio stations.”
Some other changes were made as well. Salem is combining the sales efforts of Salem Media Reps and the Salem Web Network with the combined sales team reporting to Mike Reed and Mike DeAmicis at Salem Media Reps.
David Evans, Salem COO said, “This unified sales team will now have easier access to all digital assets within our company to more fully grow into a ‘One-World’ company that offers ministries, advertisers, and our audiences’ multiple platforms with which to consume content and reach communities.”
ABOUT SALEM MEDIA GROUP:
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.
IRVING, Texas–(BUSINESS WIRE)– Salem Media Group, Inc. (NASDAQ: SALM) with a heavy heart, announced today the passing of co-founder, Stuart Epperson. He was 86. Stuart, along with his brother-in-law, Edward Atsinger, founded Salem Communications (now Salem Media Group) in 1986 and expanded Salem’s influence with Christian and politically conservative News Talk formatted radio stations and media assets nationwide. Mr. Epperson was a longtime leader in Christian radio as a former member of the board of directors of the National Religious Broadcasters Association. In 2005, Time Magazine named him one of the 25 most influential evangelicals in America. Stuart was involved in several other conservative organizations dedicated to preserving Judeo Christian values in our culture through public policy. He was a member and the past president of the conservative Council for National Policy (“CNP”). In 1984 and 1986, Epperson was the Republican nominee for the fifth Congressional district of North Carolina.
Epperson attended Bob Jones University in Greenville, South Carolina, where he received a bachelor’s degree in radio/television broadcasting and a master’s degree in communications. Epperson is survived by his wife, Nancy, his four children, daughters Kristy, Karen, and Kathy, and son Stuart Jr. and by 21 grandchildren, 1 great grandchild and 2 more on the way, as well as a sister, Mary Lee King.
Salem Media Group Executive Chairman Ed Atsinger commented: “Stuart will be greatly missed by many. I will miss him, but I take comfort in realizing that he is already receiving his reward for a life well-lived. A life that personifies the words of the Apostle Paul in 2 Timothy 4:7-8: ‘I have fought the good fight. I have finished the race. Now there Is in store for me the crown of righteousness, which the Lord, the righteous Judge, will award to me on that day and not only to me, but also to all who have longed for his appearing.’”
ABOUT SALEM MEDIA GROUP:
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.
IRVING, Texas–(BUSINESS WIRE)– Salem Media Group, Inc. (NASDAQ: SALM) announced today that the “Main Street Matters” podcast, produced by Job Creators Network, will join the Salem Podcast Network, effective June 7, 2023.
Main Street Matters is America’s small business megaphone and will feature inspirational real-life stories of the struggles and successes of small business owners. By highlighting their grit, determination, and passion Main Street Matters will prove the American Dream is still alive. The podcast will be co-hosted by Alfredo Ortiz, President and CEO of Job Creators Network, and Elaine Parker, President of Job Creators Network Foundation. Two episodes of the podcast will be released each week.
“We are so happy to add a podcast to our lineup that talks to small business owners and entrepreneurs — the lifeblood of the economy,” said Salem Senior Vice President of Spoken Word, Phil Boyce. “Alfredo and Elaine are two of the best voices out there in this space and will be able to help so many people grow and succeed.”
“Job Creators Network is proud to partner with Salem to launch this important podcast,” said Alfredo Ortiz. “‘Main Street Matters’ will elevate the concerns of small business job creators and promote the positive American vision of entrepreneurship. This small business message is needed now to counter big government narratives and policies.”
“Small businesses are the backbone of the American economy, yet they are under constant pressure from bad government policy,” said Elaine Parker. “Job Creators Network is excited to tell their stories in the new podcast, ‘Main Street Matters’, to build public support for policies that help them flourish. We are excited to partner with Salem, the premiere audio distribution channel of conservative thought.”
The Job Creators Network (JCN) is the country’s leading organization fighting for economic freedom by advocating for pro-growth policies and pushing back against government overreach. JCN provides business and community leaders with the tools and training to become an effective voice for free enterprise in the media, in Congress, in state capitals, and with their employees. By creating advocates, we can hold politicians accountable and reduce the efforts of big government to over-regulate and overtax America’s small business owners.
As the president and CEO of the Job Creators Network, Alfredo Ortiz has led the defense of small businesses from the onslaught of bad government policies. He has testified before legislative committees about the impact of taxation and regulation on small business growth. He served as a Commissioner to the White House Hispanic Prosperity Initiative. Ortiz was instrumental in helping pass the historic tax cuts bill of 2017. Before joining JCN, Ortiz was a marketing and corporate strategy consultant, working for various Fortune 500 companies. He has been widely published in major media outlets, including The Wall Street Journal, USA Today, CNBC, The Hill, and U.S. News & World Report and is a frequent guest on cable news networks and national radio talk shows, including CNN, Fox News, Hugh Hewitt, Mike Gallagher, and the Dennis Prager Show as well as C-SPAN. Ortiz received his MBA at the University of Michigan and graduated from Pomona College with a bachelor’s degree in economics.
Elaine Parker has more than 20 years of experience in the communications field, beginning her career as a Public Relations Manager for Chrysler. She later became an independent communications consultant specializing in public policy advocacy, media strategies, and crisis communications. In her roles with the Job Creators Network and the Job Creators Network Foundation, she frequently appears as a guest on television and nationally syndicated radio shows and has published op-eds in FoxNews.com, Washington Examiner, Los Angeles Daily News, RealClear Policy, Townhall, The Hill, The Orange County Register, the Orlando Sentinel and other national publications. Parker is a graduate of the University of Central Florida, where she studied Business Administration.
The Salem Podcast network launched in January 2021 and is ranked as the 10th most listened to podcast network on the Triton Digital platform, with 17 million average downloads per month.
ABOUT SALEM MEDIA GROUP:
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.
IRVING, Texas–(BUSINESS WIRE)– Salem Media Group, Inc. (NASDAQ: SALM), announced today that it will present virtually at the Singular Research Spring Select Webinar on Wednesday, May 24th at 3:45 PM Central Time. The presentation will be available on the investor relations portion of the company’s website www.salemmedia.com prior to the company’s presentation.
ABOUT SINGULAR RESEARCH
Singular Research aims to be the most trusted supplier of independent, trusted, single-sources research on small-to-micro cap companies to the small-to-medium sized Hedge Fund manager. Singular Research provides quarterly updates for 40 to 70 companies and makes recommendations.
Singular strives to achieve goals by finding undercovered and undervalued securities. Singular’s goal is to provide initiation reports and quarterly updates for approximately 50 micro-to-small cap companies. In most cases, Singular analysts research companies that are not covered by any other firms.
Singular provides honest advice. Independent analysts have no financial interest in the stocks covered. Analysts are compensated based on the accuracy of their research calls not through trading commissions or potential deal flow.
ABOUT SALEM MEDIA GROUP
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.
IRVING, Texas–(BUSINESS WIRE)– Salem Media Group, Inc. (the “company”)(NASDAQ: SALM) released its results for the three months ended March 31, 2023.
First Quarter 2023 Results
For the three months ended March 31, 2023 compared to the three months ended March 31, 2022:
Consolidated
Total revenue increased 1.4% to $63.5 million from $62.6 million;
Total operating expenses increased 17.4% to $67.7 million from $57.6 million;
Operating expenses, excluding stock-based compensation expense, debt modification costs, gains and losses on the sale or disposition of assets, impairments, depreciation expense and amortization expense (1) increased 11.4% to $62.1 million from $55.8 million;
The company had an operating loss of $4.2 million as compared to operating income of $5.0 million;
The company had a net loss of $5.2 million, or $0.19 net loss per share, compared to net income of $1.7 million, or $0.06 net income per diluted share;
EBITDA (1) decreased 107.6% to $(0.6) million from $8.2 million; and
Adjusted EBITDA (1) decreased 79.6% to $1.4 million from $6.8 million.
Broadcast
Net broadcast revenue decreased 0.2% to $48.3 million from $48.4 million;
Station Operating Income (“SOI”) (1) decreased 46.4% to $5.5 million from $10.3 million;
Same Station (1) net broadcast revenue decreased 0.5% to $48.1 million from $48.4 million; and
Same Station SOI (1) decreased 41.6% to $6.0 million from $10.3 million.
Digital Media
Digital media revenue increased 2.0% to $10.5 million from $10.3 million; and
Digital Media Operating Income (1) decreased 17.0% to $1.5 million from $1.8 million.
Publishing
Publishing revenue increased 19.7% to $4.6 million from $3.9 million; and
Publishing Operating Loss (1) increased 24.9% to $0.7 million from $0.6 million.
Included in the results for the three months ended March 31, 2023 are:
A $2.1 million ($1.6 million, net of tax, or $0.06 per share) impairment charge to the value of broadcast license related to the acquisition of radio station WMYM-AM in Miami, Florida;
A $0.1 million loss on the early retirement of long-term debt associated with the 2024 Notes; and
A $0.1 million non-cash compensation charge related to the expensing of stock options.
Included in the results for the three months ended March 31, 2022 are:
A $1.7 million ($1.3 million, net of tax, or $0.05 per diluted share) net gain on the disposition of assets related primarily to the gain on sale of land in Phoenix, Arizona offset by various fixed asset disposals; and
A $0.2 million ($0.2 million, net of tax, or $0.01 per share) charge for debt modification costs; 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 27,216,787 diluted weighted average shares for the three months ended March 31, 2023, and 27,610,407 diluted weighted average shares for the three months ended March 31, 2022.
Balance Sheet
As of March 31, 2023, the company had $159.4 million outstanding on the 7.125% senior secured notes due 2028 (“2028 Notes”) and $18.2 million outstanding on the ABL facility.
Acquisitions and Divestitures
The following transactions were completed since January 1, 2023:
The company invested $1.5 million in a limited liability company that will own, distribute, and market a motion picture.
On March 24, 2023, the company closed on the acquisition of Digital Felt Productions and its digital content library for $25,000 in cash.
On February 1, 2023, the company acquired the George Gilder Report and other digital newsletters and related website assets. The company assumed the deferred subscription liabilities paying no cash at the time of closing. The purchase price is 25% of net revenue generated from sales of most Eagle Financial products during the next year to subscribers who are on George Gilder subscriber lists that are not already on Eagle Financial lists.
On January 10, 2023, the company closed on the acquisition of radio stations WWFE-AM, WRHC-AM and two FM translators in Miami, Florida for $3.0 million in cash. The Asset Purchase Agreement (“APA”) was amended for the company to acquire only the radio stations and translators for $3.0 million, a related party to acquire the land directly from the seller for $2.0 million, and the company to have an option to purchase the land from the related party pursuant to an option to purchase real estate agreement. The company’s executive officers, who have no relationship with the related party, began negotiations for the related party lease agreements and option agreements, subject to final approval by the company’s Audit Committee pursuant to its related party transaction policy. The option to purchase real estate agreement was approved by the company’s Audit Committee on March 1, 2023.
On January 6, 2023 the company closed on the acquisition of radio station WMYM-AM and an FM translator in Miami, Florida for $3.2 million in cash. The company began operating the radio station under a Time Brokerage Agreement (“TBA”) beginning on November 16, 2022. The APA was amended for the company to acquire only the radio station and translator for $3.2 million, a related party to acquire the land directly from the seller for $1.8 million, and the company to have an option to purchase the land from the related party pursuant to an option to purchase real estate agreement. The company’s executive officers, who have no relationship with the related party, began negotiations for the related party lease agreements and option agreements, subject to final approval by the company’s Audit Committee pursuant to its related party transaction policy. The option to purchase real estate agreement was approved by the company’s Audit Committee on March 1, 2023.
Pending transactions:
In June 2022 the company entered into agreements to sell radio stations KLFE-AM and KNTS-AM in Seattle, Washington for $0.7 million subject to approval of the Federal Communications Commission. Radio station KLFE-AM is being programmed under a TBA as of August 1, 2022.
Conference Call Information
The company will host a teleconference to discuss its results on May 9, 2023 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 First Quarter 2023 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 May 23, 2023 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.
Second Quarter 2023 Outlook
For the second quarter of 2023, the company is projecting total revenue to decline between 5% and 7% from the second quarter 2022 total revenue of $68.7 million. The company is also projecting operating expenses before gains or losses on the sale or disposal of assets, stock-based compensation expense, legal settlement, changes in the estimated fair value of contingent earn-out consideration, impairments, depreciation expense and amortization expense (“Recurring Operating Expenses”) to increase between 3% and 6% compared to the second quarter of 2022 Recurring Operating Expenses of $60.0 million.
A reconciliation of Recurring Operating Expenses (a non-GAAP measure) 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 the company to close and integrate announced transactions, market acceptance of the company’s radio station formats, competition from new technologies, inflation and other adverse economic conditions, and other risks and uncertainties detailed from time to time in the company’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. The company 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 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 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 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 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 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 operating 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 is 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.
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.
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.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Patrick McCann, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
In-line Q1 results. The company reported Q1 revenue of $63.5 million, beating our estimate of $62 million by 2.4%. Revenue in the quarter was driven by slightly better than expected broadcast and publishing revenues. Adj. EBITDA of $1.4 million was largely in line with our estimate of $1.7 million.
Sizeable cost reductions. The company eliminated $5 million in annualized costs in the first quarter. The savings were included in management issued guidance for Q2 and full year 2023, and are expected to have an equal impact in each quarter moving forward. We believe that the company is managing cash flow while investing in its Digital businesses and into Salem News.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
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.
