Salem Media Group Reports 10% Increase In Broadcast Revenue

Salem Media group has released its results for the three months ended March 31, 2022.

First Quarter 2022 Results, compared to the quarter ended March 31, 2021:

• ConsolidatedTotal revenue increased 5.5% to $62.6 million from $59.4 million;
• Total operating expenses increased 4.8% to $57.6 million from $55.0 million;
• Operating expenses, excluding gains or losses on the disposition of assets, stock-based compensation expense, changes in the estimated fair value of contingent earn-out consideration, impairments, depreciation expense and amortization expense increased 8.4% to $55.8 million from $51.4 million;
• Operating income increased 14.2% to $5.0 million from $4.4 million;
• Net income increased 438.4% to $1.7 million, or $0.06 net income per diluted share from $0.3 million, or $0.01 net income diluted per share;
• EBITDA increased 8.6% to $8.2 million from $7.5 million;
• Adjusted EBITDA  decreased 13.6% to $6.8 million from $7.9 million; and
• Net cash used by operating activities decreased 53.1% to $4.3 million from $9.2 million.

Broadcast Net broadcast revenue increased 10.0% to $48.4 million from $44.0 million;
Station Operating Income (“SOI”) (1) decreased 3.7% to $10.3 million from $10.7 million;
Same Station (1) net broadcast revenue increased 9.4% to $48.1 million from $44.0 million; and
Same Station SOI (1) decreased 5.0% to $10.3 million from $10.9 million.

Digital Media Digital media revenue increased 7.1% to $10.3 million from $9.6 million; and
Digital Media Operating Income (1) increased 93.1% to $1.8 million from $0.9 million.

Publishing Publishing revenue decreased 31.8% to $3.9 million from $5.7 million; and
Publishing Operating Loss (1) was $0.6 million compared to Publishing Operating Income (1) of $0.5 million.

Pending transactions:

• On August 31, 2021, the company entered into an agreement to sell 9.3 acres of land in the Denver area for $8.2 million. The company expects to close this sale in the second quarter of 2022 and plans to continue broadcasting both KRKS-AM and KBJD-AM from this site.
• On June 2, 2021, the company entered into an agreement to acquire radio station KKOL-AM in Seattle, Washington for $0.5 million. The company paid $0.1 million in cash into an escrow account and began operating the station under a Local Marketing Agreement on June 7, 2021. The company expects the transaction to close in the latter half of 2022.
• On February 5, 2020, the company entered into an Asset Purchase Agreement with Word Broadcasting to sell radio stations WFIA-AM, WFIA-FM and WGTK-AM in Louisville, Kentucky for $4.0 million with credits applied from amounts previously paid, including a portion of the monthly fees paid under a Time Brokerage Agreement. Due to changes in debt markets, the transaction was not funded, and it is uncertain when, or if, the transaction will close. Word Broadcasting continues to program the stations under a TBA that began in January 2017.