Salem Reports 2Q Broadcast Revenue Increased 1.8 Percent

Salem Communications Corporation has released its results for the three and six months ended June 30, 2014.

Second Quarter 2014 Highlights

• Total revenue increased 14.1%
• Internet and e-commerce revenue increased 45.3% and Internet and e-commerce operating income increased 43.3%
• Publishing revenue increased 99.4%
• Two books published by Regnery are on the New York Times best seller list

Second Quarter 2014 Results

For the quarter ended June 30, 2014 compared to the quarter ended June 30, 2013:

Consolidated

• Total revenue increased 14.1% to $68.6 million from $60.1 million;
• Total operating expenses increased 20.3% to $61.1 million from $50.8 million;
• Operating expenses, excluding gains or losses on disposals of assets, stock-based compensation expense, changes in the fair value of contingent earn-out consideration and impairment charges increased 21.2% to $60.2 million from $49.7 million;
• Operating income decreased 19.3% to $7.5 million from $9.3 million;
• Net income decreased to $1.3 million, or $0.05 net income per diluted share, from $5.2 million, or $0.20 net income per diluted share, in the prior year

Broadcast

• Net broadcast revenue increased 1.8% to $47.9 million from $47.0 million;
• Station operating income decreased 13.8% to $13.9 million from $16.2 million;
• Same station net broadcast revenue increased 1.1% to $47.6 million from $47.0 million;
• Same station SOI decreased 13.1% to $14.1 million from $16.2 million; and
• Same station SOI margin decreased to 29.6% from 34.4%.