Salem Media Group Announces 3Q Total Revenue of $65.4M

Salem Media Group, Inc. Tuesday released its results ending September 30, 2017.

Third Quarter 2017 Results

For the quarter ended September 30, 2017 compared to the quarter ended September 30, 2016:

Consolidated

• Total revenue decreased 8.2% to $65.4 million from $71.3 million;
• Total operating expenses decreased 3.2% to $60.4 million from $62.4 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, depreciation expense and amortization expense (1) decreased 4.7% to $55.9 million from $58.6 million;
• Operating income decreased 43.4% to $5.0 million from $8.8 million;
• The company had a net loss of $46,000 or $0.00 loss per diluted share, as compared to net income of $2.2 million, or $0.08 net income per diluted share;
• EBITDA (1) decreased 34.7% to $9.1 million from $14.0 million;
• Adjusted EBITDA (1) decreased 24.2% to $9.6 million from $12.6 million; and
• Net cash provided by operating activities increased to $8.6 million from $6.8 million.

Broadcast

• Net broadcast revenue decreased 5.1% to $48.4 million from $51.1 million;
• Station Operating Income (“SOI”) (1) decreased 16.4% to $11.4 million from $13.6 million;
• Same Station (1) net broadcast revenue decreased 4.6% to $48.3 million from $50.7 million; and
• Same Station SOI (1) decreased 16.7% to $11.4 million from $13.7 million.

Digital Media

• Digital media revenue decreased 12.9% to $10.4 million from $12.0 million; and
• Digital Media Operating Income (1) decreased 19.5% to $2.3 million from $2.8 million.

The following transactions were completed since July 1, 2017:

• On September 15, 2017, the company closed on the acquisition of real property, including the land, tower and broadcasting facilities, of radio station WSPZ-AM in Bethesda, Maryland for $1.5 million in cash. On September 15, 2017, the company entered an Asset Purchase Agreement to acquire radio station WSPZ-AM in Bethesda, Maryland for $0.6 million in cash from a related party. The company began programming the station under a Local Marketing Agreement within its Washington DC broadcast market on the same date.
• On August 31, 2017, the company acquired the TeacherTube.com website and related assets for $1.1 million in cash.
• On August 31, 2017, the company acquired the Intelligence Report newsletter and related assets valued at $2.5 million and it assumed deferred subscription liabilities of $2.9 million. The company paid no cash to the seller upon closing.
• On July 24, 2017, the company closed on the acquisition of an FM translator construction permit in Eaglemount, Washington, for $40,000 in cash. The FM translator will be relocated to the Portland, Oregon market for use by its KDZR-AM radio station.
• On July 6, 2017, the company acquired the TradersCrux.com website and related assets for $0.3 million in cash. In addition, the company may pay the seller a one-time contingent payment of up to $0.1 million if certain income goals are met during the one-year following the closing.