Salem Media: Slight Increase For Broadcast Revenue

Salem Media Group, Inc. (Nasdaq: SALM) released its results for the three and six months ended June 30, 2016.

Second Quarter 2016 Results

Consolidated

• Total revenue increased 1% to $67.8 million from $67.3 million;
• Total operating expenses increased to $58.1 million from $58.0 million;
• Operating expenses, excluding 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, impairment of long-lived assets, depreciation expense and amortization expense (1) increased 2% to $54.9 million from $53.8 million;
• Operating income increased 5% to $9.7 million from $9.3 million;
• Net income decreased 5% to $3.4 million, or $0.13 net income per diluted share from $3.5 million, or $0.14 net income per diluted share;
• EBITDA (1) increased 2% to $13.9 million from $13.6 million;
• Adjusted EBITDA (1) decreased 5% to $12.9 million from $13.5 million; and Free cash flow (1) decreased 13.0% to $6.5 million from $7.5 million.

Broadcast

• Net broadcast revenue increased 1% to $49.7 million from $49.1 million;
• Station Operating Income ("SOI") (1) increased 1% to $14.0 million from $13.9 million;
• Same station (1) net broadcast revenue increased to $49.0 million from $48.9 million; and Same station SOI (1) increased 1% to $14.0 million from $13.9 million.

Digital media

• Digital media revenue decreased 2% to $11.3 million from $11.5 million; and
• Digital media operating income (1) decreased 7% to $2.5 million from $2.7 million.

Year to Date 2016 Results

Broadcast

• Net broadcast revenue increased 3% to $98.2 million from $95.6 million