Salem Reports 20 Percent Jump In Revenue, Swings To Profit

Salem Media Group reported second quarter total revenue increased 20.6% to $63.8 million from $52.9 million in 2020. 

• Total operating expenses rose 8.2% to $58.1 million from $53.8 million. 
• Operating income grew to $5.6 million compared from an operating loss of $0.9 million. 
• Adjusted EBITDA increased 212.1% to $8.7 million from $2.8 million. 
• The company posted a net income of $2.3 million (8 cents per diluted share) as compared to a net loss of $2.5 million (9 cents) in the year-ago period.
• Second quarter net broadcast revenue increased 18.5% to $46.8 million from $39.5 million. 
• Station Operating Income (SOI) was up 66.6% to $10.6 million from $6.4 million
• Same Station net broadcast revenue increased 18.7% to $46.5 million from $39.1 million
• Same Station SOI grew 58.7% to $10.6 million from $6.7 million. 
• Digital media revenue increased 9.5% to $10.3 million from $9.4 million and Digital Media Operating Income rose 11.8% to $2.0 million from $1.8 million.

As of June 30, 2021, the company had $216.3 million outstanding on the 6.75% senior secured notes due 2024, no balance outstanding on the Asset Based Revolving Credit Facility and $11.2 million outstanding on Paycheck Protection Program loans from the Small Business Administration. During July, 2021, the SBA forgave all but $20,000 of the loans.

Looking head to Q3, the company is projecting total revenue to increase between 2% and 4% from third quarter 2020 total revenue of $60.6 million.