Salem Reports Q1 Total Revenue of $65 Million

RADIO ONLINE | Monday, May 8, 2017

Salem Media Group, Inc. has released its results for the three months ended March 31. For the quarter ended March 31, 2017 compared to the quarter ended March 31, 2016:

Consolidated •

• Total revenue increased 0.6% to $65.0 million from $64.6 million; •
• Total operating expenses increased 2.9% to $60.2 million from $58.5 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 losses, depreciation expense and amortization expense (1) increased 0.9% to $54.6 million from $54.1 million; •
• Operating income decreased to $4.8 million from $6.1 million; •
• Net income increased to $1.1 million, or $0.04 net income per diluted share from $0.4 million, or $0.01 net income per diluted share; •
• EBITDA (1) increased 9.5% to $9.3 million from $8.5 million; •
• Adjusted EBITDA (1) decreased 0.9% to $10.3 million from $10.4 million; •
• Net cash provided by operating activities decreased 18.4% to $9.0 million from $11.1 million; and •
• Adjusted Free Cash Flow (1) decreased 1.1% to $4.5 million from $4.6 million.

Broadcast •

• Net broadcast revenue decreased 1.9% to $47.8 million from $48.7 million; •
• Station Operating Income ("SOI") (1) decreased 5.0% to $12.0 million from $12.6 million; •
• Same Station (1) net broadcast revenue decreased 1.6% to $47.6 million from $48.3 million; and •
• Same Station SOI (1) decreased 3.8% to $12.1 million from $12.6 million.

Digital Media •

• Digital media revenue decreased 2.9% to $10.7 million from $11.0 million; and •
• Digital Media Operating Income (1) was unchanged at $2.0 million.

Publishing •

• Publishing revenue increased 34.6% to $6.5 million from $4.8 million; and •
• Publishing Operating Income (Loss) (1) increased to income of $0.1 million from a $0.1 million loss.

Per share numbers are calculated based on 26,290,926 diluted weighted average shares for the quarter ended March 31, 2017, and 25,802,958 diluted weighted average shares for the quarter ended March 31, 2016.

Salem will host a teleconference to discuss its results on May 8, 2017 at 8:30 a.m. Eastern Time. To access the teleconference, please dial (877) 524-8416, and then ask to be joined into the Salem Media Group First Quarter 2017 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 May 18, 2017 and can be heard by dialing (877) 660-6853, passcode 13660226 or on the investor relations portion of the company's website, located at investor.salemmedia.com.

For the second quarter of 2017, the company is projecting total revenue to decline 1% to 3% from second quarter 2016 total revenue of $67.8 million. This decline is due to the lack of political revenue, the elimination of four loss-making magazines during the quarter and the fact that the company released Hillary's America by Dinesh D'Souza late in the second quarter last year, which hit #1 on the New York Times Bestseller list. The company does not have a comparable book release scheduled for the second quarter of 2017. Excluding the impact of these items, the company would be projecting revenue growth of 0.5% to 2.5%. The company is also projecting operating expenses before gains or losses on the disposal of assets, stock-based compensation expense, changes in the estimated fair value of contingent earn-out consideration, impairments, depreciation expense and amortization expense to be between a decrease of 1% and an increase of 2% compared to the second quarter of 2016 non-GAAP operating expenses of $54.9 million.