SOURCE: Salem Communications Corporation

Salem Communications Corporation

November 05, 2009 16:30 ET

Salem Communications Announces Third Quarter 2009 Total Revenue of $48.9 Million

CAMARILLO, CA--(Marketwire - November 5, 2009) - Salem Communications Corporation (NASDAQ: SALM), a leading U.S. radio broadcaster, Internet content provider, and magazine and book publisher targeting audiences interested in Christian and family-themed content and conservative values, released its results for the three and nine months ended September 30, 2009.

Third Quarter 2009 Results

For the quarter ended September 30, 2009 compared to the quarter ended September 30, 2008:

Consolidated

-- Total revenue decreased 10.2% to $48.9 million from $54.4 million;
-- Operating expenses decreased 20.8% to $54.4 million from
   $68.7 million;
-- Operating expenses excluding impairment of goodwill and indefinite-
   lived assets and gain or loss on disposal of assets decreased 16.6%
   to $40.2 million from $48.2 million;
-- Operating loss from continued operations was $5.5 million in the
   current quarter as compared to $14.2 million in the prior year;
-- Net loss was $4.6 million, or $0.19 net loss per share, as compared
   to $11.0 million, or $0.47 net loss per share;
-- EBITDA was a loss of $0.2 million for the quarter as compared to a
   loss of $9.7 million in the prior year; and
-- Adjusted EBITDA decreased 2.3% to $12.5 million from $12.7 million.

Broadcast

-- Net broadcast revenue decreased 11.4% to $42.0 million from
   $47.4 million;
-- Station operating income ("SOI") decreased 8.2% to $15.1 million
   from $16.4 million;
-- Same station net broadcast revenue decreased 12.2% to $40.9 million
   from $46.6 million;
-- Same station SOI decreased 9.9% to $15.0 million from $16.7 million;
   and
-- Same station SOI margin increased to 36.8% from 35.8%.

Non-broadcast

-- Non-broadcast revenue decreased 2.8% to $6.9 million from
   $7.1 million; and
-- Non-broadcast operating income increased to $0.7 million from
   $0.6 million.

Included in the results for the quarter ended September 30, 2009 are:

--  A $14.1 million impairment of goodwill and indefinite-lived assets
    ($7.3 million, net of tax, or $0.31 per share) related to the impairment of
    radio broadcasting licenses and goodwill in our Dallas, Atlanta, Detroit,
    Portland and Cleveland markets;
--  A $0.8 million charge ($0.4 million, net of tax, or $0.02 per share)
    related to the change in fair value of our interest rate swaps;
--  A $1.6 million gain of bargain purchase ($0.8 million, net of tax, or
    $0.04 per diluted share) related to the purchase of WZAB-AM in Miami,
    Florida of $1.0 million; and
--  A $0.1 million non-cash compensation charge related to the expensing
    of stock options.
    

Included in the results for the quarter ended September 30, 2008 are:

-- A $0.1 million loss, net of tax, on the disposal of assets;
-- A $20.3 million impairment of long-lived assets ($11.7 million, net of
   tax, or $0.49 per share) related to the impairment of radio
   broadcasting licenses in our Cleveland market;
-- A $0.1 million income, net of tax, from discontinued operations of radio
   stations in Milwaukee, Wisconsin and Columbus, Ohio and CCM Magazine;
   and
-- A $2.0 million non-cash compensation charge ($1.2 million, net of tax,
   or $0.05 per share) related to the expensing of stock options.  This
   charge included approximately $1.6 million related to the voluntary
   surrender of unvested stock options by senior management.  The charge
   consists of:
     - $1.8 million non-cash compensation included in corporate expenses;
     - $0.1 million non-cash compensation included in broadcast operating
       expenses; and
     - $0.1 million non-cash compensation included in non-broadcast
       operating expenses

These results reflect the reclassification of the operations of our Columbus, Ohio and Milwaukee, Wisconsin radio stations to discontinued operations for all periods presented. These stations had net broadcast revenue of approximately $0.4 million and generated a profit of $0.1 million for the quarter ended September 30, 2008 and net broadcast revenue of approximately $0.3 million and generated a profit of $41,000 for the quarter ended September 30, 2009.

Additionally, these results reflect the reclassification of the operations of CCM Magazine to discontinued operations. The magazine generated no non-broadcast revenue and profit for the quarter ended September 30, 2008.

The company had no other comprehensive income or loss for the quarter ended September 30, 2009 due to the interest rate swaps becoming ineffective during the fourth quarter of 2008. This is compared to other comprehensive loss of $0.3 million, net of tax, for the quarter ended September 30, 2008 due to the change in fair market value of the company's interest rate swaps.

Per share numbers are calculated based on 23,933,940 diluted weighted average shares for the quarter ended September 30, 2009, and 23,673,788 diluted weighted average shares for the quarter ended September 30, 2008.

Year to Date 2009 Results

For the nine month period ended September 30, 2009 compared to the nine month period ended September 30, 2008:

Consolidated

-- Total revenue decreased 11.3% to $147.3 million from $165.9 million;
-- Operating expenses decreased 4.1% to $150.5 million from
   $157.0 million;
-- Operating expenses excluding impairment of goodwill and
   indefinite-lived assets, cost of denied tower site and abandoned
   projects and gain or loss on disposal of assets decreased 15.9% to
   $119.9 million from $142.5 million;
-- Operating loss from continued operations was $3.3 million as compared
   to operating income of $8.9 million in the prior year;
-- Net loss was $6.8 million, or $0.28 net loss per share, as compared
   to $2.5 million, or $0.11 net loss per share;
-- EBITDA decreased 54.7% to $10.5 million from $23.3 million; and
-- Adjusted EBITDA increased 0.3% to $39.1 million from $38.9 million.

Broadcast

-- Net broadcast revenue decreased 12.1% to $127.6 million from
   $145.2 million;
-- SOI decreased 8.0% to $46.5 million from $50.6 million;
-- Same station net broadcast revenue decreased 12.6% to $123.4 million
   from $141.2 million;
-- Same station SOI decreased 7.9% to $46.1 million from $50.0 million;
   and
-- Same station SOI margin increased to 37.3% from 35.4%.

Non-broadcast

-- Non-broadcast revenue decreased 5.1% to $19.7 million from
   $20.7 million; and
-- Non-broadcast operating income increased to $2.3 million from
   $1.1 million.

Included in the results for the nine month period ended September 30, 2009 are:

-- A $1.1 million charge ($0.6 million, net of tax, or $0.03 per share)
   related to the costs of a denied tower site relocation project for radio
   station KDOW-AM, San Francisco, California, which was rejected by the
   City of Hayward and an abandoned tower site relocation for KKLA-FM, Los
   Angeles, California;
-- A $27.8 million impairment of goodwill and indefinite-lived assets
  ($15.8 million, net of tax, or $0.66 per share) consisting of a $26.6
   million impairment of radio broadcasting licenses and goodwill in our
   Dallas, Atlanta, Detroit, Portland and Cleveland markets and a $1.2
   million impairment of goodwill and mastheads in our non-broadcast
   segment;
-- A $1.7 million loss ($0.9 million, net of tax, or $0.04 per share) on
   disposal of assets primarily from the sale of radio station KPXI-FM in
   Tyler-Longview, Texas;
-- A $1.5 million benefit ($0.9 million, net of tax, or $0.04 per diluted
   share) related to the change in fair value of our interest rate swaps;
-- A $1.6 million gain of bargain purchase ($0.9 million, net of tax, or
   $0.04 per diluted share) related to the purchase of WZAB-AM in Miami,
   Florida of $1.0 million;
-- A $0.7 million gain ($0.4 million, net of tax, or $0.02 per diluted
   share) on early redemption of long-term debt due to the repurchase of
   $1.0 million of our 7 3/4% senior subordinated notes due in 2010;
-- A $0.2 million income ($0.01 gain per diluted share), net of tax, from
   discontinued operations of a radio station in Columbus, Ohio; and
-- A $0.4 million non-cash compensation charge ($0.2 million, net of tax,
   or $0.01 per share) related to the expensing of stock options consisting
   of:
     - $0.2 million non-cash compensation included in corporate expenses;
       and
     - $0.1 million non-cash compensation included in broadcast operating
       expenses; and
     - $0.1 million non-cash compensation included in non-broadcast
       operating expenses.

Included in the results for the nine month period ended September 30, 2008 are:

-- A $5.9 million gain primarily from the disposal of the assets of KTEK-AM
   in Houston, Texas ($3.5 million gain, net of tax, or $0.15 per diluted
   share);
-- A $20.3 million impairment of long-lived assets ($12.2 million, net of
   tax, or $0.51 per share) related to the impairment of radio broadcasting
   licenses in our Cleveland market;
-- A $2.1 million income ($0.09 gain per diluted share), net of tax, from
   discontinued operations consisting primarily of:
     - A $1.3 million gain, net of tax, from the sale of WRRD-AM in
       Milwaukee, Wisconsin;
     - A $0.8 million gain, net of tax, from the sale of WFZH-FM in
       Milwaukee, Wisconsin; and
     - The operating results of radio station WRFD-AM in Columbus, Ohio and
       the operating results of CCM Magazine; and
-- A $3.3 million non-cash compensation charge ($2.0 million, net of tax,
   or $0.08 per share) related to the expensing of stock options.  This
   charge included approximately $1.6 million related to the voluntary
   surrender of unvested stock options by senior management.  The charge
   consists of:
     - $2.8 million non-cash compensation included in corporate expenses;
     - $0.4 million non-cash compensation included in broadcast operating
       expenses; and
     - $0.1 million non-cash compensation included in non-broadcast
       operating expenses.

These results reflect the reclassification of the operations of our Columbus, Ohio and Milwaukee, Wisconsin radio stations to discontinued operations for all periods presented. These stations had net broadcast revenue of approximately $1.7 million and generated a profit of $0.2 million for the nine months ended September 30, 2008 and net broadcast revenue of approximately $1.1 million and generated a profit of $0.2 million for the nine months ended September 30, 2009.

Additionally, these results reflect the reclassification of the operations of CCM Magazine to discontinued operations for all periods presented. The magazine had non-broadcast revenue of $0.4 million and generated a profit of $0.1 million for the nine months ended September 30, 2008.

The company had no other comprehensive income or loss for the nine months ended September 30, 2009 due to the interest rate swaps becoming ineffective during the fourth quarter of 2008. Other comprehensive loss of $0.5 million, net of tax, for the nine months ended September 30, 2008 is due to the change in fair market value of the company's interest rate swaps.

Per share numbers are calculated based on 23,670,505 diluted weighted average shares for the nine months ended September 30, 2009 and 23,670,455 diluted weighted average shares for the comparable 2008 period.

Balance Sheet

As of September 30, 2009, the company had net debt of $290.2 million and was in compliance with the covenants of its credit facilities and bond indentures. The company's bank leverage ratio was 5.16 versus a compliance covenant of 5.75 and its bond leverage ratio was 5.23 versus a compliance covenant of 7.0.

Acquisitions and Divestitures

The following transaction is currently pending:

--  WRFD (880 AM) in Columbus, Ohio will be sold for approximately $4.0
    million.
    

Fourth Quarter 2009 Outlook

For the fourth quarter of 2009, Salem is projecting total revenue to decrease 8% to 10% over fourth quarter 2008 total revenue of $54.8 million. Salem is also projecting operating expenses before gain or loss on disposal of assets, terminated transaction costs and abandoned license upgrades and impairments to decline 5% to 8% as compared to the fourth quarter of 2008 operating expenses of $43.0 million.

In addition to its radio properties, Salem owns Salem Radio Network®, which syndicates talk, news and music programming to approximately 2,000 affiliates; Salem Media Representatives™, a national radio advertising sales force; Salem Web Network™, an Internet provider of Christian content and online streaming; and Salem Publishing™, a publisher of Christian-themed magazines. Upon the close of all announced transactions, the company will own 93 radio stations, including 58 stations in 22 of the top 25 markets. Additional information about Salem may be accessed at the company's website, www.salem.cc.

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, 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.

Regulation G

Station operating income, non-broadcast operating income, EBITDA and Adjusted EBITDA are financial measures not prepared in accordance with generally accepted accounting principles ("GAAP"). Station operating income is defined as net broadcast revenues minus broadcast operating expenses. Non-broadcast operating income is defined as non-broadcast revenue minus non-broadcast operating expenses. EBITDA is defined as net income before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA before discontinued operations (net of tax), impairment of goodwill and indefinite-lived asset, gain or loss on the disposal of assets and non-cash compensation expense. In addition, Salem has provided supplemental information as an attachment to this press release, reconciling these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with GAAP. The company believes these non-GAAP financial measures, when considered in conjunction with the most directly comparable GAAP financial measures, provide useful measures of the company's operating performance.

Station operating income, non-broadcast operating income, EBITDA and Adjusted EBITDA are generally recognized by the broadcast industry as important measures of performance and are used by investors as well as analysts who report on the industry to provide meaningful comparisons between broadcast. Station operating income, non-broadcast operating income, EBITDA and Adjusted EBITDA are not a measure 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, the company's results of operations presented on a GAAP basis such as operating income and net income. In addition, Salem's definitions of station operating income, non-broadcast operating income, EBITDA and Adjusted EBITDA are not necessarily comparable to similarly titled measures reported by other companies.

Salem Communications Corporation
Condensed Consolidated Statements of Operations
(in thousands, except share, per share and margin data)


                              Three Months Ended      Nine Months Ended
                                September 30,           September 30,
                               2008        2009        2008        2009
                            ----------  ----------  ----------  ----------
                                              (unaudited)

Net broadcast revenue       $   47,371  $   41,994  $  145,226  $  127,595
Non-broadcast revenue            7,057       6,856      20,711      19,662
                            ----------  ----------  ----------  ----------
Total revenue                   54,428      48,850     165,937     147,257
Operating expenses:
  Broadcast operating
   expenses                     30,942      26,914      94,634      81,059
  Cost of denied tower site
   and abandoned projects            -           -           -       1,111
  Non-broadcast operating
   expenses                      6,477       6,163      19,564      17,400
  Corporate expenses             6,555       3,440      16,314      10,054
  Impairment of goodwill
   and indefinite-lived
   assets                       20,320      14,146      20,320      27,809
  Depreciation and
   amortization                  4,218       3,679      12,036      11,423
  (Gain) loss on disposal
   of assets                       142          54      (5,862)      1,670
                            ----------  ----------  ----------  ----------
Total operating expenses        68,654      54,396     157,006     150,526
                            ----------  ----------  ----------  ----------
Operating income (loss)        (14,226)     (5,546)      8,931      (3,269)
Other income (expense):
  Interest income                   47          91         181         238
  Interest expense              (5,453)     (4,291)    (17,015)    (12,929)
  Change in fair value of
   interest rate swaps               -        (842)          -       1,534
  Gain on bargain purchase           -       1,634           -       1,634
  Gain on early redemption
   of long-term debt                 -           -           -         660
  Other income (expense),
   net                             278         (24)        178         (72)
                            ----------  ----------  ----------  ----------
Loss from continuing
 operations before income
 taxes                         (19,354)     (8,978)     (7,725)    (12,204)
Benefit from income taxes       (8,235)     (4,317)     (3,100)     (5,272)
                            ----------  ----------  ----------  ----------
Loss from continuing
 operations                    (11,119)     (4,661)     (4,625)     (6,932)
Income from discontinued
 operations, net of tax             77          25       2,130         168
                            ----------  ----------  ----------  ----------
Net loss                    $  (11,042) $   (4,636) $   (2,495) $   (6,764)
                            ==========  ==========  ==========  ==========
Other comprehensive loss,
 net of tax                       (297)          -        (480)          -
                            ----------  ----------  ----------  ----------
Comprehensive loss          $  (11,339) $   (4,636) $   (2,975) $   (6,764)
                            ==========  ==========  ==========  ==========

Basic loss per share before
 discontinued operations    $    (0.47) $    (0.19) $    (0.20) $    (0.29)
Income from discontinued
 operations, net of tax     $        -  $        -  $     0.09  $     0.01
Basic loss per share after
 discontinued operations    $    (0.47) $    (0.19) $    (0.11) $    (0.28)

Diluted loss per share
 before discontinued
 operations                 $    (0.47) $    (0.19) $    (0.20) $    (0.29)
Income from discontinued
 operations, net of tax     $        -  $        -  $     0.09  $     0.01
Diluted loss per share
 after discontinued
 operations                 $    (0.47) $    (0.19) $    (0.11) $    (0.28)

Basic weighted average
 shares outstanding         23,673,788  23,933,940  23,670,455  23,760,505
                            ==========  ==========  ==========  ==========
Diluted weighted average
 shares outstanding         23,673,788  23,933,940  23,670,455  23,760,505
                            ==========  ==========  ==========  ==========

Other Data:
Station operating income    $   16,429  $   15,080  $   50,592  $   46,536
Station operating margin          34.7%       35.9%       34.8%       36.5%




Salem Communications Corporation
Condensed Consolidated Balance Sheets
(in thousands)



                                                 December 31, September 30,
                                                     2008         2009
                                                 ------------ -------------
                                                              (unaudited)
Assets
Cash                                             $      1,892 $      31,666
Trade accounts receivable, net                         28,530        26,071
Deferred income taxes                                   5,670         4,247
Other current assets                                    2,844         2,031
Assets of discontinued operations                         204           204
Property, plant and equipment, net                    133,706       123,575
Intangible assets, net                                423,709       398,200
Bond issue costs                                          268           163
Bank loan fees                                            981         1,356
Other assets                                            9,914         7,191
                                                 ------------ -------------
Total assets                                     $    607,718 $     594,704
                                                 ============ =============

Liabilities and Stockholders' Equity
Current liabilities                              $     22,897 $      97,150
Long-term debt and capital lease obligations          329,507       255,273
Deferred income taxes                                  43,106        36,548
Other liabilities                                       9,092         8,608
Stockholders' equity                                  203,116       197,125
                                                 ------------ -------------
Total liabilities and stockholders' equity       $    607,718 $     594,704
                                                 ============ =============




Salem Communications Corporation
Supplemental Information
(in thousands)

                                 Three Months Ended     Nine Months Ended
                                    September 30,         September 30,
                                  2008       2009       2008       2009
                                ---------  ---------  ---------  ---------
                                                (unaudited)
Capital expenditures
Acquisition related / income
 producing                      $   1,100  $       -  $   3,901  $     295
Maintenance                         1,430        945      4,043      2,700
                                ---------  ---------  ---------  ---------
Total capital expenditures      $   2,530  $     945  $   7,944  $   2,995
                                =========  =========  =========  =========

Tax information
Cash tax expense                $      41  $      38  $     350  $     318
Deferred tax expense               (8,276)    (4,355)    (3,450)    (5,590)
                                ---------  ---------  ---------  ---------
Benefit from income taxes       $  (8,235) $  (4,317) $  (3,100) $  (5,272)
                                =========  =========  =========  =========

Tax benefit of non-book
 amortization                   $   1,934  $   1,876  $   9,775  $   6,142
                                =========  =========  =========  =========

Reconciliation of Same Station
 Net Broadcast Revenue to Total
 Net Broadcast Revenue
Net broadcast revenue - same
 station                        $  46,576  $  40,888  $ 141,234  $ 123,382
Net broadcast revenue -
 acquisitions                           -        203          -        579
Net broadcast revenue -
 dispositions                         108          -        525          8
Net broadcast revenue - format
 changes                              687        903      3,467      3,626
                                ---------  ---------  ---------  ---------
Total net broadcast revenue     $  47,371  $  41,994  $ 145,226  $ 127,595
                                =========  =========  =========  =========

Reconciliation of Same Station
 Broadcast Operating Expenses
 to Total Broadcast Operating
 Expenses
Broadcast operating expenses -
 same station                   $  29,882  $  25,846  $  91,240  $  77,313
Broadcast operating expenses -
 acquisitions                           -        161          -        485
Broadcast operating expenses -
 dispositions                         184          -        546         12
Broadcast operating expenses -
 format changes                       876        907      2,848      3,249
                                ---------  ---------  ---------  ---------
Total broadcast operating
 expenses                       $  30,942  $  26,914  $  94,634  $  81,059
                                =========  =========  =========  =========

Reconciliation of Same Station
 Operating Income to Total
 Station Operating Income
Station operating income - same
 station                        $  16,694  $  15,042  $  49,994  $  46,069
Station operating income -
 acquisitions                           -         42          -         94
Station operating income -
 dispositions                         (76)         -        (21)        (4)
Station operating income -
 format changes                      (189)        (4)       619        377
                                ---------  ---------  ---------  ---------
Total station operating income  $  16,429  $  15,080  $  50,592  $  46,536
                                =========  =========  =========  =========




Salem Communications Corporation
Supplemental Information
(in thousands)

                                 Three Months Ended     Nine Months Ended
                                    September 30,         September 30,
                                  2008       2009       2008       2009
                                ---------  ---------  ---------  ---------
                                          (unaudited)
Reconciliation of Station
 Operating Income and
 Non-Broadcast Operating Income
 to Operating Income (Loss)
Station operating income        $  16,429  $  15,080  $  50,592  $  46,536
Non-broadcast operating income        580        693      1,147      2,262
Less:
  Corporate expenses               (6,555)    (3,440)   (16,314)   (10,054)
  Depreciation and amortization    (4,218)    (3,679)   (12,036)   (11,423)
  Cost of denied tower site and
   abandoned projects                   -          -          -     (1,111)
  Impairment of goodwill and
   indefinite-lived assets        (20,320)   (14,146)   (20,320)   (27,809)
  Gain (loss) on disposal of
   assets                            (142)       (54)     5,862     (1,670)
                                ---------  ---------  ---------  ---------
Operating income (loss)         $ (14,226) $  (5,546) $   8,931  $  (3,269)
                                =========  =========  =========  =========

Reconciliation of Adjusted
 EBITDA to EBITDA to Net Income
 (Loss)
Adjusted EBITDA                 $  12,747  $  12,458  $  38,933  $  39,051
Less:
  Stock-based compensation         (2,015)      (149)    (3,330)      (379)
  Impairment of goodwill and
   indefinite-lived assets        (20,320)   (14,146)   (20,320)   (27,809)
  Cost of denied tower site and
   abandoned projects                   -          -          -     (1,111)
  Gain on bargain purchase              -      1,634          -      1,634
  Gain on early redemption of
   long-term debt                       -          -          -        660
  Discontinued operations, net
   of tax                              77         25      2,130        168
  Gain (loss) on disposal of
   assets                            (142)       (54)     5,862     (1,670)
                                ---------  ---------  ---------  ---------
EBITDA                             (9,653)      (232)    23,275     10,544
Plus:
  Interest income                      47         91        181        238
Less:
  Depreciation and amortization    (4,218)    (3,679)   (12,036)   (11,423)
  Interest expense                 (5,453)    (4,291)   (17,015)   (12,929)
  Change in fair value of
   interest rate swaps                  -       (842)         -      1,534
  Provision for (benefit from)
   income taxes                     8,235      4,317      3,100      5,272
                                ---------  ---------  ---------  ---------
Net loss                        $ (11,042) $  (4,636) $  (2,495) $  (6,764)
                                =========  =========  =========  =========

                               Outstanding
                                   at      Applicable
                                September   Interest
                                30, 2009     Rate
                                ---------  ---------
Selected Debt and Swap Data
  7 3/4% senior subordinated
   notes                        $  89,655       7.75%
  Senior bank term loan B debt
   (1)                             71,240       1.81%
  Senior bank term loan C debt
   (swap matures 7/1/2012) (2)     30,000       6.49%
  Senior bank term loan C debt
   (swap matures 7/1/2012) (2)     30,000       6.20%
  Senior bank term loan C debt
   (swap matures 7/1/2012) (2)     30,000       6.03%
  Senior bank term C debt (at
   variable rates) (1)             70,027       1.81%

(1) Subject to rolling LIBOR plus a spread currently at 1.50% and
incorporated into the rate set forth above.

(2) Under its swap agreements, the Company pays a fixed rate plus a spread
based on the Company's leverage, as defined in its credit agreement. As of
September 30, 2009, that spread was 1.50% and is incorporated into the
applicable interest rates set forth above.

Contact Information

  • Company Contact:
    Evan D. Masyr
    Salem Communications
    (805) 987-0400 ext. 1053
    evanm@salem.cc