Salem Earnings: Broadcast Revenue Flat, Digital Increases

Salem Media Group, Inc. has released its results for the three and twelve months ended December 31, 2014.

• Total revenue increased 5.2% to $65.9 million
• Digital media revenue increased 14.7%
• Publishing revenue increased 47.0%

Fourth Quarter 2014 Results

• Total revenue increased 5.2% to $65.9 million from $62.7 million;
• Total operating expenses increased 11.3% to $59.0 million from $53.0 million;
• Operating expenses, excluding gains or losses on the sale or disposal of assets, stock-based compensation expense, impairment charges, depreciation and amortization expense increased 11.7% to $54.0 million from $48.4 million;
• Operating income decreased 28.3% to $6.9 million from $9.7 million;
• Net income decreased to $38,000, or $0.00 net income per diluted share, from $5.3 million, or $0.21 net income per diluted share, in the prior year;
• EBITDA (1) decreased 16.5% to $11.3 million from $13.6 million; and Adjusted EBITDA (1) decreased 16.7% to $11.9 million from $14.3 million.

Broadcast

• Net broadcast revenue remained flat at $48.8 million;
• Station operating income ("SOI") (1) decreased 10.3% to $13.8 million from $15.4 million;
• Same station net broadcast revenue decreased 1.0% to $48.3 million from $48.8 million;
• Same station SOI decreased 10.0% to $13.8 million from $15.4 million; and
• Same station SOI margin decreased to 28.6% from 31.5%.

Digital media

• Digital media revenue increased 14.7% to $11.7 million from $10.2 million; and
• Digital media operating income (1) decreased 9.4% to $2.6 million from $2.9 million.

Year to Date 2014 Results

For the twelve months ended December 31, 2014 compared to the twelve months ended December 31, 2013:

• Total revenue increased 12.5% to $266.5 million from $236.9 million;
• Operating expenses increased 17.5% to $237.9 million from $202.4 million;

Broadcast

• Net broadcast revenue increased 2.3% to $192.9 million from $188.5 million;
• SOI decreased 7.4% to $54.4 million from $58.7 million;
• Same station net broadcast revenue increased 1.5% to $191.4 million from $188.5 million;
• Same station SOI decreased 7.0% to $54.7 million from $58.8 million; and
• Same station SOI margin decreased to 28.6% from 31.2%.

Digital media

• Digital media revenue increased 33.3% to $46.9 million from $35.2 million; and
• Digital media operating income increased 12.9% to $10.6 million from $9.4 million.