IRVING, Texas--(BUSINESS WIRE)--Nov 3, 2022--
Salem Media Group, Inc. (Nasdaq: SALM) released its results for the three and nine months ended September 30, 2022.
Third Quarter 2022 Results
For the quarter ended September 30, 2022 compared to the quarter ended September 30, 2021:
Consolidated
Broadcast
Digital Media
Publishing
Included in the results for the quarter ended September 30, 2022 are:
Included in the results for the quarter ended September 30, 2021 are:
Per share numbers are calculated based on 27,216,787 diluted weighted average shares for the quarter ended September 30, 2022, and 27,280,949 diluted weighted average shares for the quarter ended September 30, 2021.
Year to Date 2022 Results
For the nine months ended September 30, 2022 compared to the nine months ended September 30, 2021:
Consolidated
Broadcast
Digital media
Publishing
Included in the results for the nine months ended September 30, 2022 are:
Included in the results for the nine months ended September 30, 2021 are:
Per share numbers are calculated based on 27,202,983 diluted weighted average shares for the nine months ended September 30, 2022, and 27,217,382 diluted weighted average shares for the nine months ended September 30, 2021.
Balance Sheet
As of September 30, 2022, the company had $114.7 million outstanding on the 7.125% senior secured notes due 2028 (“2028 Notes”) and $44.7 million outstanding on 6.75% senior secured notes due 2024 (“2024 Notes”).
Acquisitions and Divestitures
The following transactions were completed since July 1, 2022:
Pending Transactions
Conference Call Information
Salem will host a teleconference to discuss its results on November 3, 2022 at 4:00 p.m. Central Time. To access the teleconference, please dial (888) 770-7291, and then ask to be joined into the Salem Media Group Third Quarter 2022 call or listen via the investor relations portion of the company’s website, located at investor.salemmedia.com. A replay of the teleconference will be available through November 17, 2022 and can be heard by dialing (800) 770-2030, passcode 2413416 or on the investor relations portion of the company’s website, located at investor.salemmedia.com.
Follow us on Twitter @SalemMediaGrp.
Fourth Quarter 2022 Outlook
For the fourth quarter of 2022, the company is projecting total revenue to decrease between 3% and 5% from fourth quarter 2021 total revenue of $69.1 million. This decrease is due largely to the fact that Regnery had an extremely strong fourth quarter in book sales last year. The company is also projecting operating expenses before gains or losses on the sale or disposal of assets, stock-based compensation expense, legal settlement, changes in the estimated fair value of contingent earn-out consideration, impairments, depreciation expense and amortization expense (“Recurring Operating Expenses”) to increase between 4% and 7% compared to the fourth quarter of 2021 Recurring Operating Expenses of $58.3 million.
A reconciliation of Recurring Operating Expenses to the most directly comparable GAAP measure is not available without unreasonable efforts on a forward-looking basis due to the potential high variability, complexity and low visibility with respect to the charges excluded from this non-GAAP financial measure, in particular, the change in the estimated fair value of earn-out consideration, impairments and gains or losses from the disposition of fixed assets. The company expects the variability of the above charges may have a significant, and potentially unpredictable, impact on its future GAAP financial results.
About Salem Media Group, Inc.
Salem Media Group is America’s leading multimedia company specializing in Christian and conservative content, with media properties comprising radio, digital media and book and newsletter publishing. Each day Salem serves a loyal and dedicated audience of listeners and readers numbering in the millions nationally. With its unique programming focus, Salem provides compelling content, fresh commentary and relevant information from some of the most respected figures across the Christian and conservative media landscape. Learn more about Salem Media Group, Inc. at www.salemmedia.com, Facebook and Twitter.
Forward-Looking Statements
Statements used in this press release that relate to future plans, events, financial results, prospects or performance are forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those anticipated as a result of certain risks and uncertainties, including but not limited to the ability of Salem to close and integrate announced transactions, market acceptance of Salem’s radio station formats, competition from new technologies, inflation and other adverse economic conditions, and other risks and uncertainties detailed from time to time in Salem’s reports on Forms 10-K, 10-Q, 8-K and other filings filed with or furnished to the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Salem undertakes no obligation to update or revise any forward-looking statements to reflect new information, changed circumstances or unanticipated events.
(1) Regulation G
Management uses certain non-GAAP financial measures defined below in communications with investors, analysts, rating agencies, banks and others to assist such parties in understanding the impact of various items on its financial statements. The company uses these non-GAAP financial measures to evaluate financial results, develop budgets, manage expenditures and as a measure of performance under compensation programs.
The company’s presentation of these non-GAAP financial measures should not be considered as a substitute for or superior to the most directly comparable financial measures as reported in accordance with GAAP.
Regulation G defines and prescribes the conditions under which certain non-GAAP financial information may be presented in this earnings release. The company closely monitors EBITDA, Adjusted EBITDA, Station Operating Income (“SOI”), Same Station net broadcast revenue, Same Station broadcast operating expenses, Same Station Operating Income, Digital Media Operating Income, Publishing Operating Income (Loss), and operating expenses excluding gains or losses on the disposition of assets, stock-based compensation, changes in the estimated fair value of contingent earn-out consideration, impairments, depreciation and amortization, all of which are non-GAAP financial measures. The company believes that these non-GAAP financial measures provide useful information about its core operating results, and thus, are appropriate to enhance the overall understanding of its financial performance. These non-GAAP financial measures are intended to provide management and investors a more complete understanding of its underlying operational results, trends and performance.
The company defines Station Operating Income (“SOI”) as net broadcast revenue minus broadcast operating expenses. The company defines Digital Media Operating Income as net Digital Media Revenue minus Digital Media Operating Expenses. The company defines Publishing Operating Income (Loss) as net Publishing Revenue minus Publishing Operating Expenses. The company defines EBITDA as net income before interest, taxes, depreciation, and amortization. The company defines Adjusted EBITDA as EBITDA before gains or losses on the disposition of assets, before debt modification costs, before changes in the estimated fair value of contingent earn-out consideration, before impairments, before net miscellaneous income and expenses, before (gain) loss on early retirement of long-term debt and before non-cash compensation expense. SOI, Digital Media Operating Income, Publishing Operating Income (Loss), EBITDA and Adjusted EBITDA are commonly used by the broadcast and media industry as important measures of performance and are used by investors and analysts who report on the industry to provide meaningful comparisons between broadcasters. SOI, Digital Media Operating Income, Publishing Operating Income (Loss), EBITDA and Adjusted EBITDA are not measures of liquidity or of performance in accordance with GAAP and should be viewed as a supplement to and not a substitute for or superior to its results of operations and financial condition presented in accordance with GAAP. The company’s definitions of SOI, Digital Media Operating Income, Publishing Operating Income (Loss), EBITDA and Adjusted EBITDA are not necessarily comparable to similarly titled measures reported by other companies.
The company defines Same Station net broadcast revenue as broadcast revenue from its radio stations and networks that the company owns or operates in the same format on the first and last day of each quarter, as well as the corresponding quarter of the prior year. The company defines Same Station broadcast operating expenses as broadcast operating expenses from its radio stations and networks that the company owns or operates in the same format on the first and last day of each quarter, as well as the corresponding quarter of the prior year. The company defines Same Station SOI as Same Station net broadcast revenue less Same Station broadcast operating expenses. Same Station operating results include those stations that the company owns or operates in the same format on the first and last day of each quarter, as well as the corresponding quarter of the prior year. Same Station operating results for a full calendar year are calculated as the sum of the Same Station-results for each of the four quarters of that year. The company uses Same Station operating results, a non-GAAP financial measure, both in presenting its results to stockholders and the investment community, and in its internal evaluations and management of the business. The company believes that Same Station operating results provide a meaningful comparison of period over period performance of its core broadcast operations as this measure excludes the impact of new stations, the impact of stations the company no longer owns or operates, and the impact of stations operating under a new programming format. The company’s presentation of Same Station operating results are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. The company’s definition of Same Station operating results is not necessarily comparable to similarly titled measures reported by other companies.
For all non-GAAP financial measures, investors should consider the limitations associated with these metrics, including the potential lack of comparability of these measures from one company to another.
The Supplemental Information tables that follow the condensed consolidated financial statements provide reconciliations of the non-GAAP financial measures that the company uses in this earnings release to the most directly comparable measures calculated in accordance with GAAP. The company uses non-GAAP financial measures to evaluate financial performance, develop budgets, manage expenditures, and determine employee compensation. The company’s presentation of this additional information is not to be considered as a substitute for or superior to the directly comparable measures as reported in accordance with GAAP.
Salem Media Group, Inc. | |||||||||||||||||
Condensed Consolidated Statements of Operations | |||||||||||||||||
(in thousands, except share and per share data) | |||||||||||||||||
|
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| ||||||||||||
|
|
| Three Months Ended |
| Nine Months Ended | ||||||||||||
|
|
| September 30, |
| September 30, | ||||||||||||
|
|
| 2021 |
|
| 2022 |
|
| 2021 |
|
| 2022 |
| ||||
(Unaudited) | |||||||||||||||||
Net broadcast revenue | $ | 49,591 |
| $ | 51,136 |
| $ | 140,422 |
| $ | 152,020 |
| |||||
Net digital media revenue | 10,645 |
| 10,189 |
| 30,603 |
| 31,293 |
| |||||||||
Net publishing revenue | 5,747 |
| 5,537 |
| 18,093 |
| 14,840 |
| |||||||||
Total revenue | 65,983 |
| 66,862 |
| 189,118 |
| 198,153 |
| |||||||||
Operating expenses: |
|
|
|
| |||||||||||||
Broadcast operating expenses | 37,463 |
| 41,178 |
| 106,968 |
| 120,837 |
| |||||||||
| Legal settlement |
|
| — |
|
|
| 3,825 |
|
|
| — |
|
|
| 4,776 |
|
Digital media operating expenses | 8,269 |
| 8,333 |
| 25,280 |
| 25,079 |
| |||||||||
Publishing operating expenses | 5,213 |
| 6,542 |
| 16,844 |
| 16,441 |
| |||||||||
Unallocated corporate expenses | 4,284 |
| 4,840 |
| 12,764 |
| 14,431 |
| |||||||||
| Debt modification costs |
|
| 2,347 |
|
|
| 2 |
|
|
| 2,347 |
|
|
| 250 |
|
| Depreciation and amortization |
|
| 3,215 |
|
|
| 3,034 |
|
|
| 9,671 |
|
|
| 9,500 |
|
| Change in the estimated fair value of contingent earn-out consideration |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (5 | ) |
| Impairment of indefinite-lived long-term assets other than goodwill |
|
| — |
|
|
| 7,725 |
|
|
| — |
|
|
| 11,660 |
|
| Impairment of goodwill |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 127 |
|
Net (gain) loss on the disposition of assets | (10,607 | ) | 167 |
| (10,552 | ) | (8,461 | ) | |||||||||
Total operating expenses | 50,184 |
| 75,646 |
| 163,322 |
| 194,635 |
| |||||||||
Operating income (loss) | 15,799 |
| (8,784 | ) | 25,796 |
| 3,518 |
| |||||||||
Other income (expense): |
|
|
|
| |||||||||||||
Interest income | — |
| 17 |
| 1 |
| 166 |
| |||||||||
Interest expense | (4,026 | ) | (3,142 | ) | (11,887 | ) | (9,925 | ) | |||||||||
| Gain on the forgiveness of PPP loans |
|
| 11,212 |
|
|
| — |
|
|
| 11,212 |
|
|
| — |
|
Gain (loss) on early retirement of long-term debt | (56 | ) | — |
| (56 | ) | (18 | ) | |||||||||
| Earnings from equity method investment |
|
| — |
|
|
| 102 |
|
|
| — |
|
|
| 4,015 |
|
Net miscellaneous income and (expenses) | 2 |
| (19 | ) | 87 |
| (19 | ) | |||||||||
Net income (loss) before income taxes | 22,931 |
| (11,826 | ) | 25,153 |
| (2,263 | ) | |||||||||
Provision for (benefit from) income taxes | 837 |
| 59 |
| 479 |
| (1,234 | ) | |||||||||
Net income (loss) | $ | 22,094 |
| $ | (11,885 | ) | $ | 24,674 |
| $ | (1,029 | ) | |||||
|
|
|
| ||||||||||||||
Basic income (loss) per share Class A and Class B common stock | $ | 0.82 |
| $ | (0.44 | ) | $ | 0.92 |
| $ | (0.04 | ) | |||||
Diluted income (loss) per share Class A and Class B common stock | $ | 0.81 |
| $ | (0.44 | ) | $ | 0.91 |
| $ | (0.04 | ) | |||||
|
|
|
| ||||||||||||||
Basic weighted average Class A and Class B common stock shares outstanding | 26,870,664 |
| 27,216,787 |
| 26,825,483 |
| 27,202,983 |
| |||||||||
Diluted weighted average Class A and Class B common stock shares outstanding | 27,280,949 |
| 27,216,787 |
| 27,217,382 |
| 27,202,983 |
|
Salem Media Group, Inc. | |||||||
Condensed Consolidated Balance Sheets | |||||||
(in thousands) | |||||||
|
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|
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|
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|
|
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| December 31, 2021 |
|
| September 30, 2022 |
|
|
|
|
|
|
| (Unaudited) |
|
Assets |
|
|
|
|
|
|
|
Cash |
| $ | 1,785 |
| $ | 838 |
|
Accounts receivable, net |
|
| 25.663 |
|
| 30,420 |
|
Other current assets |
|
| 14,066 |
|
| 15,702 |
|
Property and equipment, net |
|
| 79,339 |
|
| 80,017 |
|
Operating and financing lease right-of-use assets |
|
| 43,665 |
|
| 43,834 |
|
Intangible assets, net |
|
| 346,438 |
|
| 331,138 |
|
Deferred financing costs |
|
| 843 |
|
| 722 |
|
Other assets |
|
| 4,313 |
|
| 4,419 |
|
Total assets |
| $ | 516,112 |
| $ | 507,090 |
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
Current liabilities |
| $ | 51,455 |
| $ | 59,808 |
|
Long-term debt |
|
| 170,581 |
|
| 155,778 |
|
Operating and financing lease liabilities, less current portion |
|
| 42,273 |
|
| 42,527 |
|
Deferred income taxes |
|
| 67,012 |
|
| 65,752 |
|
Other liabilities |
|
| 6,580 |
|
| 5,717 |
|
Stockholders’ Equity |
|
| 178,211 |
|
| 177,508 |
|
Total liabilities and stockholders’ equity |
| $ | 516,112 |
| $ | 507,090 |
|
SALEM MEDIA GROUP, INC. | ||||||||||||||||||||||||
| Class A |
| Class B |
|
|
|
|
|
|
|
| |||||||||||||
| Common Stock |
| Common Stock |
| Additional |
|
|
|
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| |||||||||||||
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|
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|
|
|
|
| Paid-In |
| Accumulated |
| Treasury |
|
| |||||||||
| Shares |
| Amount |
| Shares |
| Amount |
| Capital |
| Deficit |
| Stock |
| Total | |||||||||
Stockholders’ equity, December 31, 2020 | 23,447,317 |
| $ | 227 |
| 5,553,696 |
| $ | 56 |
| $ | 247,025 |
| $ | (78,023 | ) |
| $ | (34,006 | ) |
| $ | 135,279 | |
Stock-based compensation | — |
|
| — |
| — |
|
| — |
|
| 78 |
|
| — |
|
|
| — |
|
|
| 78 | |
Options exercised | 185,782 |
|
| 2 |
| — |
|
| — |
|
| 390 |
|
| — |
|
|
| — |
|
|
| 392 | |
Net income | — |
|
| — |
| — |
|
| — |
|
| — |
|
| 323 |
|
|
| — |
|
|
| 323 | |
Stockholders’ equity, March 31, 2021 | 23,633,099 |
| $ | 229 |
| 5,553,696 |
| $ | 56 |
| $ | 247,493 |
| $ | (77,700 | ) |
| $ | (34,006 | ) |
| $ | 136,072 | |
Stock-based compensation | — |
|
| — |
| — |
|
| — |
|
| 84 |
|
| — |
|
|
| — |
|
|
| 84 | |
Net income | — |
|
| — |
| — |
|
| — |
|
| — |
|
| 2,257 |
|
|
| — |
|
|
| 2,257 | |
Stockholders’ equity, June 30, 2021 | 23,633,099 |
| $ | 229 |
| 5,553,696 |
| $ | 56 |
| $ | 247,577 |
| $ | (75,443 | ) |
| $ | (34,006 | ) |
| $ | 138,413 | |
Stock-based compensation | — |
|
| — |
| — |
|
| — |
|
| 78 |
|
| — |
|
|
| — |
|
|
| 78 | |
Options exercised | 6,725 |
|
| — |
| — |
|
| — |
|
| 13 |
|
| — |
|
|
| — |
|
|
| 13 | |
Net income | — |
|
| — |
| — |
|
| — |
|
| — |
|
| 22,094 |
|
|
| — |
|
|
| 22,094 | |
Stockholders’ equity, September 30, 2021 | 23,639,824 |
| $ | 229 |
| 5,553,696 |
| $ | 56 |
| $ | 247,668 |
| $ | (53,349 | ) |
| $ | (34,006 | ) |
| $ | 160,598 |
| Class A |
| Class B |
|
|
|
|
|
|
|
| |||||||||||||
| Common Stock |
| Common Stock |
| Additional |
|
|
|
|
|
| |||||||||||||
|
|
|
|
|
|
|
|
| Paid-In |
| Accumulated |
| Treasury |
|
| |||||||||
| Shares |
| Amount |
| Shares |
| Amount |
| Capital |
| Deficit |
| Stock |
| Total | |||||||||
Stockholders’ equity, December 31, 2021 | 23,922,974 |
| $ | 232 |
| 5,553,696 |
| $ | 56 |
| $ | 248,438 |
| $ | (36,509 | ) |
| $ | (34,006 | ) |
| $ | 178,211 |
|
Stock-based compensation | — |
|
| — |
| — |
|
| — |
|
| 106 |
|
| — |
|
|
| — |
|
|
| 106 |
|
Options exercised | 40,913 |
|
| — |
| — |
|
| — |
|
| 94 |
|
| — |
|
|
| — |
|
|
| 94 |
|
Lapse of restricted shares | 14,854 |
|
| — |
| — |
|
| — |
|
| — |
|
| — |
|
|
| — |
|
|
| — |
|
Net income | — |
|
| — |
| — |
|
| — |
|
| — |
|
| 1,739 |
|
|
| — |
|
|
| 1,739 |
|
Stockholders’ equity, March 31, 2022 | 23,978,741 |
| $ | 232 |
| 5,553,696 |
| $ | 56 |
| $ | 248,638 |
| $ | (34,770 | ) |
| $ | (34,006 | ) |
| $ | 180,150 |
|
Stock-based compensation | — |
|
| — |
| — |
|
| — |
|
| 68 |
|
| — |
|
|
| — |
|
|
| 68 |
|
Net income | — |
|
| — |
| — |
|
| — |
|
| — |
|
| 9,117 |
|
|
| — |
|
|
| 9,117 |
|
Stockholders’ equity, June 30, 2022 | 23,978,741 |
| $ | 232 |
| 5,553,696 |
| $ | 56 |
| $ | 248,706 |
| $ | (25,653 | ) |
| $ | (34,006 | ) |
| $ | 189,335 |
|
Stock-based compensation | — |
|
| — |
| — |
|
| — |
|
| 54 |
|
| — |
|
|
| — |
|
|
| 54 |
|
Options exercised | 2,000 |
|
| — |
| — |
|
| — |
|
| 4 |
|
| — |
|
|
| — |
|
|
| 4 |
|
Net loss | — |
|
| — |
| — |
|
| — |
|
| — |
|
| (11,885 | ) |
|
| — |
|
|
| (11,885 | ) |
Stockholders’ equity, September 30, 2022 | 23,980,741 |
| $ | 232 |
| 5,553,696 |
| $ | 56 |
| $ | 248,764 |
| $ | (37,538 | ) |
| $ | (34,006 | ) |
| $ | 177,508 |
|
Salem Media Group, Inc. | ||||||||||||||||
Supplemental Information | ||||||||||||||||
(in thousands) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2021 |
| 2022 |
| 2021 |
| 2022 |
| |||||||||
(Unaudited) | ||||||||||||||||
Reconciliation of Total Operating Expenses to Operating Expenses excluding Legal Settlement, Debt Modification Costs, Depreciation and Amortization Expense, Changes in the Estimated Fair Value of Contingent Earn-out Consideration, Impairments, Gains or Losses on the Disposition of Assets and Stock-based Compensation Expense (Recurring Operating Expenses) | ||||||||||||||||
Operating Expenses | $ | 50,184 |
| $ | 75,646 |
| $ | 163,322 |
| $ | 194,635 |
| ||||
Less legal settlement |
|
| — |
|
|
| (3,825 | ) |
|
| — |
|
|
| (4,776 | ) |
Less debt modification costs |
|
| (2,347 | ) |
|
| (2 | ) |
|
| (2,347 | ) |
|
| (250 | ) |
Less depreciation and amortization expense |
|
| (3,215 | ) |
|
| (3,034 | ) |
|
| (9,671 | ) |
|
| (9,500 | ) |
Less change in estimated fair value of contingent earn-out Consideration | — |
| — |
| — |
| 5 |
| ||||||||
Less impairment of indefinite-lived long-term assets other than goodwill |
|
| — |
|
|
| (7,725 | ) |
|
| — |
|
|
| (11,660 | ) |
Less impairment of goodwill |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (127 | ) |
Less net gain (loss) on the disposition of assets | 10,607 |
| (167 | ) | 10,552 |
| 8,461 |
| ||||||||
Less stock-based compensation expense |
|
| (78 | ) |
|
| (54 | ) |
|
| (240 | ) |
|
| (228 | ) |
Total Recurring Operating Expenses | $ | 55,151 |
| $ | 60,839 |
| $ | 161,616 |
| $ | 176,560 |
| ||||
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Reconciliation of Net Broadcast Revenue to Same Station Net Broadcast Revenue | ||||||||||||||||
Net broadcast revenue |
| $ | 49,591 |
|
| $ | 51,136 |
|
| $ | 140,422 |
|
| $ | 152,020 |
|
Net broadcast revenue – acquisitions | — |
| — |
| — |
| (247 | ) | ||||||||
Net broadcast revenue – dispositions |
|
| — |
|
|
| (15 | ) |
|
| (113 | ) |
|
| (64 | ) |
Net broadcast revenue – format change | (52 | ) | — |
| (117 | ) | (111 | ) | ||||||||
Same Station net broadcast revenue |
| $ | 49,539 |
|
| $ | 51,121 |
|
| $ | 140,192 |
|
| $ | 151,598 |
|
|
|
|
| |||||||||||||
Reconciliation of Broadcast Operating Expenses to Same Station Broadcast Operating Expenses | ||||||||||||||||
Broadcast operating expenses |
| $ | 37,463 |
|
| $ | 41,178 |
|
| $ | 106,968 |
|
| $ | 120,837 |
|
Broadcast operating expenses – acquisitions | — |
| — |
| (1 | ) | (279 | ) | ||||||||
Broadcast operating expenses – dispositions |
|
| — |
|
|
| (87 | ) |
|
| (214 | ) |
|
| (135 | ) |
Broadcast operating expenses – format change | (4 | ) | (28 | ) | (135 | ) | (160 | ) | ||||||||
Same Station broadcast operating expenses |
| $ | 37,459 |
|
| $ | 41,063 |
|
| $ | 106,618 |
|
| $ | 120,263 |
|
|
|
|
| |||||||||||||
Reconciliation of SOI to Same Station SOI |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Station Operating Income | $ | 12,128 |
| $ | 9,958 |
| $ | 33,454 |
|
| $ | 31,183 |
| |||
Station operating (income) loss – acquisitions |
|
| — |
|
|
| — |
|
|
| 1 |
|
|
| 32 |
|
Station operating (income) loss – dispositions | — |
| 72 |
| 101 |
| 71 |
| ||||||||
Station operating (income) loss – format change |
|
| (48 | ) |
| 28 |
|
|
| 18 |
|
|
| 49 |
| |
Same Station - Station Operating Income | $ | 12,080 |
| $ | 10,058 |
| $ | 33,574 |
| $ | 31,335 |
|
Salem Media Group, Inc. | ||||||||||||||||
Supplemental Information | ||||||||||||||||
(in thousands) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2021 |
| 2022 |
| 2021 |
| 2022 |
| |||||||||
(Unaudited) | ||||||||||||||||
Calculation of Station Operating Income, Digital Media Operating Income and Publishing Operating Income (Loss) | ||||||||||||||||
Net broadcast revenue | $ | 49,591 |
| $ | 51,136 |
| $ | 140,422 |
| $ | 152,020 |
| ||||
Less broadcast operating expenses |
|
| (37,463 | ) |
|
| (41,178 | ) |
|
| (106,968 | ) |
|
| (120,837 | ) |
Station Operating Income | $ | 12,128 |
| $ | 9,958 |
| $ | 33,454 |
| $ | 31,183 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net digital media revenue | $ | 10,645 |
| $ | 10,189 |
| $ | 30,603 |
| $ | 31,293 |
| ||||
Less digital media operating expenses |
|
| (8,269 | ) |
|
| (8,333 | ) |
|
| (25,280 | ) |
|
| (25,079 | ) |
Digital Media Operating Income | $ | 2,376 |
| $ | 1,856 |
| $ | 5,323 |
| $ | 6,214 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net publishing revenue | $ | 5,747 |
| $ | 5,537 |
| $ | 18,093 |
| $ | 14,840 |
| ||||
Less publishing operating expenses |
|
| (5,213 | ) |
|
| (6,542 | ) |
|
| (16,844 | ) |
|
| (16,441 | ) |
Publishing Operating Income (Loss) | $ | 534 |
| $ | (1,005 | ) | $ | 1,249 |
| $ | (1,601 | ) |
The company defines EBITDA (1) as net income before interest, taxes, depreciation, and amortization. The table below presents a reconciliation of EBITDA (1) to Net Income (Loss), the most directly comparable GAAP measure. EBITDA (1) is a non-GAAP financial performance measure that is not to be considered a substitute for or superior to the directly comparable measures reported in accordance with GAAP. The company defines Adjusted EBITDA (1) as EBITDA (1) before gains or losses on the disposition of assets, before debt modification costs, before changes in the estimated fair value of contingent earn-out consideration, before impairments, before net miscellaneous income and expenses, before (gain) loss on early retirement of long-term debt, before gain on the forgiveness of PPP loans and before non-cash compensation expense. The table below presents a reconciliation of Adjusted EBITDA (1) to Net Income (Loss), the most directly comparable GAAP measure. Adjusted EBITDA (1) is a non-GAAP financial performance measure that is not to be considered a substitute for or superior to the directly comparable measures reported in accordance with GAAP.
|
| |||||||||||||||
|
| Three Months Ended September 30, |
| Nine Months Ended September 30, | ||||||||||||
|
|
| ||||||||||||||
2021 |
| 2022 |
| 2021 |
| 2022 | ||||||||||
|
| (Unaudited) | ||||||||||||||
Net income (loss) |
| $ | 22,094 |
|
| $ | (11,885 | ) |
| $ | 24,674 |
|
| $ | (1,029 | ) |
Plus interest expense, net of capitalized interest | 4,026 |
| 3,142 |
| 11,887 |
|
| 9,925 |
| |||||||
Plus provision for (benefit from) income taxes |
|
| 837 |
|
|
| 59 |
|
|
| 479 |
|
|
| (1,234 | ) |
Plus depreciation and amortization | 3,215 |
| 3,034 |
| 9,671 |
|
| 9,500 |
| |||||||
Less interest income |
|
| — |
|
|
| (17 | ) |
|
| (1 | ) |
|
| (166 | ) |
EBITDA | $ | 30,172 |
| $ | (5,667 | ) | $ | 46,710 |
| $ | 16,996 |
| ||||
Plus net (gain) loss on the disposition of assets |
|
| (10,607 | ) |
|
| 167 |
|
|
| (10,552 | ) |
|
| (8,461 | ) |
Plus change in the estimated fair value of contingent earn-out consideration | — |
| — |
| — |
|
| (5 | ) | |||||||
Plus debt modification costs |
|
| 2,347 |
|
|
| 2 |
|
|
| 2,347 |
|
|
| 250 |
|
Plus impairment of indefinite-lived long-term assets other than goodwill |
|
| — |
|
|
| 7,725 |
|
|
| — |
|
|
| 11,660 |
|
Plus impairment of goodwill |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 127 |
|
Plus net miscellaneous (income) and expenses |
|
| (2 | ) |
|
| 19 |
|
|
| (87 | ) |
|
| 19 |
|
Plus (gain) loss on early retirement of long- term debt |
|
| 56 |
|
|
| — |
|
|
| 56 |
|
|
| 18 |
|
Plus gain on the forgiveness of PPP loans |
|
| (11,212 | ) |
|
| — |
|
|
| (11,212 | ) |
|
| — |
|
Plus non-cash stock-based compensation |
|
| 78 |
|
|
| 54 |
|
|
| 240 |
|
|
| 228 |
|
Adjusted EBITDA | $ | 10,832 |
| $ | 2,300 |
| $ | 27,502 |
| $ | 20,832 |
| ||||
|
|
| |||
Selected Debt Data | Outstanding at | Applicable Interest Rate | |||
September 30, 2022 | |||||
Senior Secured Notes due 2028 (1) | $ | 114,731,000 | 7.125% | ||
Senior Secured Notes due 2024 (2) | $ | 44,685,000 |
|
| 6.750% |
(1) $114.7 million notes with semi-annual interest payments at an annual rate of 7.125%. | |||||
(2) $44.7 million notes with semi-annual interest payments at an annual rate of 6.750%. |
View source version on businesswire.com:https://www.businesswire.com/news/home/20221101006096/en/
CONTACT: Evan D. Masyr
Executive Vice President and Chief Financial Officer
(805) 384-4512
evan@salemmedia.com
KEYWORD: CALIFORNIA UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: TECHNOLOGY ENTERTAINMENT RELIGION COMMUNICATIONS TV AND RADIO INTERNET SOCIAL MEDIA CONSUMER BLOGGING
SOURCE: Salem Media Group, Inc.
Copyright Business Wire 2022.
PUB: 11/03/2022 04:05 PM/DISC: 11/03/2022 04:07 PM
http://www.businesswire.com/news/home/20221101006096/en