SOURCE: Salem Communications Corporation

Salem Communications Corporation

March 03, 2010 16:07 ET

Salem Communications Announces Fourth Quarter 2009 Total Revenue of $50.8 Million

CAMARILLO, CA--(Marketwire - March 3, 2010) - 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 twelve months ended December 31, 2009.

Fourth Quarter 2009 Results

For the quarter ended December 31, 2009 compared to the quarter ended
December 31, 2008:

    Consolidated
    -- Total revenue decreased 7.9% to $50.8 million from $55.2 million;
    -- Operating expenses decreased 58.2% to $40.2 million from
       $96.2 million;
    -- Operating expenses excluding impairment of indefinite-lived
       intangible assets, cost of denied tower site and abandoned projects
       and gain or loss on disposal of assets decreased 7.5% to $40.1
       million from $43.3 million;
    -- Operating income from continued operations was $10.6 million for
       the current quarter as compared to an operating loss of $41.1
       million in the prior year;
    -- Net loss was $1.6 million, or $0.07 net loss per share, as compared
       to $30.6 million, or $1.29 net loss per share in the prior year;
    -- EBITDA was $12.5 million for the quarter as compared to a loss of
       $32.6 million in the prior year; and
    -- Adjusted EBITDA decreased 7.9% to $14.7 million from $15.9 million.

    Broadcast
    -- Net broadcast revenue decreased 8.8% to $43.3 million from $47.5
       million;
    -- Station operating income ("SOI") decreased 6.6% to $17.1 million
       from $18.3 million;
    -- Same station net broadcast revenue decreased 8.9% to $42.9 million
       from $47.1 million;
    -- Same station SOI decreased 7.0% to $17.0 million from $18.3 million;
       and
    -- Same station SOI margin increased to 39.6% from 38.8%.

    Non-broadcast
    -- Non-broadcast revenue decreased 2.1% to $7.5 million from $7.7
       million; and
    -- Non-broadcast operating income decreased 1.2% to $1.3 million from
       $1.4 million.

Included in the results for the quarter ended December 31, 2009 are:
    -- A $0.1 million loss, net of tax, from discontinued operations of
       radio stations in Milwaukee, Wisconsin;
    -- A $0.2 million impairment of indefinite-lived intangible assets
       ($0.1 million, net of tax) related to the impairment of radio
       broadcasting licenses in our Detroit market;
    -- A $2.3 million charge ($1.4 million, net of tax, or $0.09 per
       share) related to the change in fair value of our interest rate
       swaps;
    -- A $1.7 million loss ($1.0 million, net of tax, or $0.04 per share)
       on early redemption of long-term debt due to the repurchase of our
       7 3/4% senior subordinated notes due in 2010; and
    -- A $0.2 million non-cash compensation charge ($0.1 million, net of
       tax) related to the expensing of stock options.


Included in the results for the quarter ended December 31, 2008 are:
    -- A $0.2 million loss, net of tax, from discontinued operations of
       radio stations in Milwaukee, Wisconsin;
    -- A $1.0 million gain ($0.7 million, net of tax, or $0.3 per diluted
       share) on the disposal of assets;
    -- A $52.7 million impairment of indefinite-lived intangible assets
       ($34.4 million, net of tax, or $1.45 per share) related to the
       impairment of radio broadcasting licenses and goodwill in our
       Boston, Detroit, Cleveland, Louisville, Nashville, Tampa, Miami,
       Orlando, Sacramento, and Omaha markets;
    -- A $1.3 million charge ($0.8 million, net of tax, or $0.05 per
       share) related to terminated transaction costs and abandoned
       license upgrades;
    -- A $4.8 million charge ($3.2 million, net of tax, or $0.20 per
       share) related to the change in fair value of our interest rate
       swaps; and
    -- A $4.7 million gain ($3.0 million, net of tax, or $0.13 per
       diluted share) on early redemption of long-term debt due to the
       repurchase of $9.4 million of our 7 3/4% senior subordinated notes
       due in 2010.

These results reflect the reclassification of the operations of our Milwaukee, Wisconsin radio stations to discontinued operations for all periods presented. These stations had no net broadcast revenue and operating income for the quarter ended December 31, 2008 and no net broadcast revenue and generated a loss of $0.2 million for the quarter ended December 31, 2009.

Per share numbers are calculated based on 23,933,940 diluted weighted average shares for the quarter ended December 31, 2009, and 23,673,788 diluted weighted average shares for the quarter ended December 31, 2008.

Year to Date 2009 Results

For the twelve month period ended December 31, 2009 compared to the twelve month period ended December 31, 2008:

    Consolidated
    -- Total revenue decreased 10.5% to $199.2 million from $222.5 million;
    -- Operating expenses decreased 24.7% to $191.6 million from $254.3
       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 14.0% to
       $160.8 million from $186.9 million;
    -- Operating income from continued operations was $7.6 million as
       compared to an operating loss of $31.8 million in the prior year;
    -- Net loss was $8.3 million, or $0.35 net loss per share, as compared
       to $33.1 million, or $1.40 net loss per share;
    -- EBITDA increased to $23.1 million from a loss of $9.1 million in
       the prior year; and
    -- Adjusted EBITDA decreased 2.2% to $54.0 million from $55.2 million.

    Broadcast
    -- Net broadcast revenue decreased 11.4% to $172.1 million from $194.1
       million;
    -- SOI decreased 7.7% to $63.9 million from $69.2 million;
    -- Same station net broadcast revenue decreased 11.7% to $167.4
       million from $189.7 million;
    -- Same station SOI decreased 7.7% to $63.3 million from $68.6 million;
       and
    -- Same station SOI margin increased to 37.8% from 36.2%.

    Non-broadcast
    -- Non-broadcast revenue decreased 4.3% to $27.2 million from $28.4
       million; and
    -- Non-broadcast operating income increased 43.5% to $3.6 million from
       $2.5 million.

Included in the results for the twelve month period ended December 31, 2009
are:
    -- A $1.1 million charge ($0.7 million, net of tax, or $0.05 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 $28.0 million impairment of indefinite-lived intangible assets
       ($18.5 million, net of tax, or $0.78 per share) consisting of a
       $26.8 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 ($1.1 million, net of tax, or $0.05 per share)
       on disposal of assets primarily from the sale of radio station
       KPXI-FM in Tyler-Longview, Texas;
    -- A $0.8 million charge ($0.5 million, net of tax, or $0.03 per
       share) related to the change in fair value of our interest rate
       swaps;
    -- A $1.6 million gain of bargain purchase ($1.0 million, net of tax,
       or $0.05 per diluted share) related to the purchase of WZAB-AM in
       Miami, Florida of $1.0 million;
    -- A $1.1 million loss ($0.7 million, net of tax, or $0.03 per share)
       on early redemption of long-term debt due to the repurchase of our
       7 3/4% senior subordinated notes due in 2010;
    -- A $0.1 million loss, net of tax, from discontinued operations of
       our radio station in Milwaukee, Wisconsin; and
    -- A $0.6 million non-cash compensation charge ($0.4 million, net of
       tax, or $0.02 per share) related to the expensing of stock options
       consisting of:
       - $0.3 million non-cash compensation included in corporate
         expenses; and
       - $0.2 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 twelve month period ended December 31, 2008
are:
    -- A $1.8 million income ($0.07 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 CCM Magazine.
    -- A $6.9 million gain ($4.4 million, net of tax, or $0.19 per diluted
       share) on disposal of assets consisting primarily of a $6.1 million
       pre-tax gain from the disposal of the assets of KTEK-AM in Houston,
       Texas and a $1.1 million pre-tax gain from the disposal of the
       assets of WRVI-FM in Louisville, Kentucky.
    -- A $73.0 million impairment of indefinite-lived intangible assets
       ($47.1 million, net of tax, or $1.99 per share) related to the
       impairment of radio broadcasting licenses and goodwill in our
       Boston, Detroit, Cleveland, Louisville, Nashville, Tampa, Miami,
       Orlando, Sacramento, and Omaha markets;
    -- A $1.3 million charge ($0.8 million, net of tax, or $0.05 per
       share) related to terminated transaction costs and abandoned
       license upgrades;
    -- A $4.8 million charge ($3.2 million, net of tax, or $0.20 per
       share) related to the change in fair value of our interest rate
       swaps;
    -- A $4.7 million gain ($3.0 million, net of tax, or $0.13 per
       diluted share) on early redemption of long-term debt due to the
       repurchase of $9.4 million of our 7 3/4% senior subordinated notes
       due in 2010; and
    -- A $3.4 million non-cash compensation charge ($2.2 million, net of
       tax, or $0.09 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;
       - $0.5 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 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 loss of $0.1 million for the twelve months ended December 31, 2008 and no net broadcast revenue and generated a loss of $0.2 million for the twelve months ended December 31, 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 twelve months ended December 31, 2008.

The company had no other comprehensive income or loss for the twelve months ended December 31, 2009 due to the interest rate swaps becoming ineffective during the fourth quarter of 2008. Other comprehensive loss $0.5 million, net of tax, for the twelve months ended December 31, 2008 is due to the change in fair market value of the company's interest rate swaps.

Per share numbers are calculated based on 23,803,864 diluted weighted average shares for the twelve months ended December 31, 2009 and 23,671,288 diluted weighted average shares for the comparable 2008 period.


Balance Sheet

As of December 31, 2009, the company had net debt of $305.1 million and was in compliance with the covenants of its credit facilities and bond indentures. The company's bank leverage ratio was 5.83 versus a compliance covenant of 7.0.


Acquisitions and Divestitures

    -- On February 12, 2010, the company completed the acquisition of
       HotAir.com, a popular conservative Internet blog, for $2.0 million;
       and

    -- On December 30, 2009, the potential buyer of radio station WRFD-AM,
       Columbus, Ohio, advised the company that they would not be able to
       meet the terms of the asset purchase agreement entered into on
       July 31, 2008.  Because of the buyer terminating the agreement, the
       accompanying financial information for all periods presented
       reflects the results of this market in continuing operations.  In
       January 2010, the company collected a $0.2 million termination fee
       from the buyer pursuant to the asset purchase agreement.

Conference Call Information

Salem will host a teleconference to discuss its results today, on March 3, 2010 at 2:00 p.m. Pacific Time. To access the teleconference, please dial (719) 325-2249, passcode 3481356 or listen via the investor relations portion of the company's website, located at www.salem.cc. A replay of the teleconference will be available through March 17, 2010 and can be heard by dialing (719) 457-0820, passcode 3481356 or on the investor relations portion of the company's website, located at www.salem.cc.

First Quarter 2010 Outlook

For the first quarter of 2010, Salem is projecting total revenue to decrease 1% to 3% over first quarter 2009 total revenue of $48.7 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 increase 1% to 4% as compared to the first quarter of 2009 operating expenses of $39.7 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 94 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 indefinite-lived intangible assets, 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      Twelve Months Ended
                                 December 31,            December 31,
                               2008        2009        2008        2009
                            ----------  ----------  ----------  ----------
                                  (unaudited)

Net broadcast revenue       $   47,530  $   43,347  $  194,113  $  172,055
Non-broadcast revenue            7,654       7,491      28,377      27,158
                            ----------  ----------  ----------  ----------
Total revenue                   55,184      50,838     222,490     199,213
Operating expenses:
  Broadcast operating
   expenses                     29,215      26,249     124,881     108,149
  Non-broadcast operating
   expenses                      6,302       6,155      25,867      23,555
  Corporate expenses             3,726       3,951      20,040      14,005
  Depreciation and
   amortization                  4,066       3,697      16,136      15,120
  Cost of denied tower site
   and abandoned projects        1,275           -       1,275       1,111
  Impairment of
   indefinite-lived
   intangible assets            52,690         187      73,010      27,996
  (Gain) loss on disposal of
   assets                       (1,030)          6      (6,892)      1,676
                            ----------  ----------  ----------  ----------
Total operating expenses        96,244      40,245     254,317     191,612
                            ----------  ----------  ----------  ----------
Operating income (loss)        (41,060)     10,593     (31,827)      7,601
Other income (expense):
  Interest income                   66          52         247         290
  Interest expense              (5,366)     (7,150)    (22,381)    (20,079)
  Change in fair value of
   interest rate swaps          (4,827)     (2,315)     (4,827)       (781)
  Gain on bargain purchase           -           -           -       1,634
  Gain (loss) on early
   redemption of long-term
   debt                          4,664      (1,710)      4,664      (1,050)
  Other income (expense), net      (57)        (16)        121         (88)
                            ----------  ----------  ----------  ----------
Loss from continuing
 operations before income
 taxes                         (46,580)       (546)    (54,003)    (12,473)
Provision for (benefit
 from) income taxes            (16,173)        945     (19,151)     (4,210)
                            ----------  ----------  ----------  ----------
Loss from continuing
 operations                    (30,407)     (1,491)    (34,852)     (8,263)
Income (loss) from
 discontinued operations,
 net of tax                       (184)        (91)      1,766         (83)
                            ----------  ----------  ----------  ----------
Net loss                    $  (30,591) $   (1,582) $  (33,086) $   (8,346)
                            ==========  ==========  ==========  ==========
Other comprehensive loss,
 net of tax                          -           -        (480)          -
                            ----------  ----------  ----------  ----------
Comprehensive loss          $  (30,591) $   (1,582) $  (33,566) $   (8,346)
                            ==========  ==========  ==========  ==========

Basic (loss) per share
 before discontinued
 operations                 $    (1.28) $    (0.06) $    (1.47) $    (0.35)
Income (loss) from
 discontinued operations,
 net of tax                 $    (0.01) $        -  $     0.07  $        -
Basic (loss) per share
 after discontinued
 operations                 $    (1.29) $    (0.07) $    (1.40) $    (0.35)

Diluted (loss) per share
 before discontinued
 operations                 $    (1.28) $    (0.06) $    (1.47) $    (0.35)
Income (loss) from
 discontinued operations,
 net of tax                 $    (0.01) $        -  $     0.07  $        -
Diluted  (loss) per share
 after discontinued
 operations                 $    (1.29) $    (0.07) $    (1.40) $    (0.35)

Basic weighted average
 shares outstanding         23,673,788  23,933,940  23,671,288  23,803,864
                            ==========  ==========  ==========  ==========
Diluted weighted average
 shares outstanding         23,673,788  23,933,940  23,671,288  23,803,864
                            ==========  ==========  ==========  ==========

Other Data:
Station operating income    $   18,315  $   17,098  $   69,232  $   63,906
Station operating margin          38.5%       39.4%       35.7%       37.1%





Salem Communications Corporation
Condensed Consolidated Balance Sheets
(in thousands)

                                                  December 31, December 31,
                                                      2008         2009
                                                  ------------ ------------

Assets
Cash                                              $      1,892 $      8,945
Restricted cash                                              -          100
Trade accounts receivable, net                          28,530       27,289
Deferred income taxes                                    5,670        4,700
Other current assets                                     2,844        3,459
Property, plant and equipment, net                     133,910      121,174
Intangible assets, net                                 423,709      397,801
Bond issue costs                                           268        7,078
Bank loan fees                                             981        1,515
Other assets                                             9,914        6,984
                                                  ------------ ------------
Total assets                                      $    607,718 $    579,045
                                                  ============ ============

Liabilities and Stockholders' Equity
Current liabilities                               $     22,897 $     20,373
Long-term debt and capital lease obligations           329,507      313,969
Deferred income taxes                                   43,106       38,973
Other liabilities                                        9,092        8,531
Stockholders' equity                                   203,116      197,199
                                                  ------------ ------------
Total liabilities and stockholders' equity        $    607,718 $    579,045
                                                  ============ ============





Salem Communications Corporation
Supplemental Information
(in thousands)

                                 Three Months Ended   Twelve Months Ended
                                    December 31,          December 31,
                                  2008       2009       2008       2009
                                ---------  ---------  ---------  ---------
                                    (unaudited)
Capital expenditures
Acquisition related / income
 producing                      $      48  $       -  $   3,949  $     294
Maintenance                         1,085        737      5,135      3,437
                                ---------  ---------  ---------  ---------
Total capital expenditures      $   1,133  $     737  $   9,084  $   3,731
                                =========  =========  =========  =========

Tax information
Cash tax expense                $     (71) $      (4) $     279  $     314
Deferred tax expense              (16,102)       949    (19,430)    (4,524)
                                ---------  ---------  ---------  ---------
Provision for (benefit from)
 income taxes                   $ (16,173) $     945  $ (19,151) $  (4,210)
                                =========  =========  =========  =========

Tax benefit of non-book
 amortization                   $   1,623  $   3,138  $  11,398  $   9,280
                                =========  =========  =========  =========

Reconciliation of Same Station
 Net Broadcast
Revenue to Total Net Broadcast
 Revenue
Net broadcast revenue - same
 station                        $  47,077  $  42,907  $ 189,668  $ 167,402
Net broadcast revenue -
 acquisitions                         153        153        153        732
Net broadcast revenue -
 dispositions                          75          -        600          8
Net broadcast revenue - format
 changes                              225        287      3,692      3,913
                                ---------  ---------  ---------  ---------
Total net broadcast revenue     $  47,530  $  43,347  $ 194,113  $ 172,055
                                =========  =========  =========  =========

Reconciliation of Same Station
 Broadcast Operating Expenses
 to Total Broadcast
Operating Expenses
Broadcast operating expenses -
 same station                   $  28,814  $  25,917  $ 121,086  $ 104,071
Broadcast operating expenses -
 acquisitions                          45        147         45        632
Broadcast operating expenses -
 dispositions                         126          -        672         12
Broadcast operating expenses -
 format changes                       230        185      3,078      3,434
                                ---------  ---------  ---------  ---------
Total broadcast operating
 expenses                       $  29,215  $  26,249  $ 124,881  $ 108,149
                                =========  =========  =========  =========

Reconciliation of Same Station
 Operating Income to Total
 Station Operating Income
Station operating income - same
 station                        $  18,263  $  16,990  $  68,582  $  63,331
Station operating income -
 acquisitions                         108          6        108        100
Station operating income -
 dispositions                         (51)         -        (72)        (4)
Station operating income -
 format changes                        (5)       102        614        479
                                ---------  ---------  ---------  ---------
Total station operating income  $  18,315  $  17,098  $  69,232  $  63,906
                                =========  =========  =========  =========




Salem Communications Corporation
Supplemental Information
(in thousands)

                                 Three Months Ended   Twelve Months Ended
                                    December 31,          December 31,
                                  2008       2009       2008       2009
                                ---------  ---------  ---------  ---------
                                    (unaudited)
Reconciliation of Station
 Operating Income and Non-
 Broadcast Operating Income to
 Operating Income (Loss)
Station operating income        $  18,315  $  17,098  $  69,232  $  63,906
Non-broadcast operating income      1,352      1,336      2,510      3,603
Less:
  Corporate expenses               (3,726)    (3,951)   (20,040)   (14,005)
  Depreciation and amortization    (4,066)    (3,697)   (16,136)   (15,120)
  Cost of denied tower site and
   abandoned projects              (1,275)         -     (1,275)    (1,111)
  Impairment of indefinite-lived
   intangible assets              (52,690)      (187)   (73,010)   (27,996)
  Gain (loss) on disposal of
   assets                           1,030         (6)     6,892     (1,676)
                                ---------  ---------  ---------  ---------
Operating income (loss)         $ (41,060) $  10,593  $ (31,827) $   7,601
                                =========  =========  =========  =========

Reconciliation of Adjusted
 EBITDA to EBITDA  to Net
 Income (Loss)
Adjusted EBITDA                 $  15,928  $  14,676  $  55,197  $  54,004
Less:
  Stock-based compensation            (44)      (209)    (3,374)      (588)
  Impairment of indefinite-lived
   intangible assets              (52,690)      (187)   (73,010)   (27,996)
  Cost of denied tower site and
   abandoned projects              (1,275)         -     (1,275)    (1,111)
  Gain on bargain purchase              -          -          -      1,634
  Gain (loss) on early
   redemption of long-term debt     4,664     (1,710)     4,664     (1,050)
  Discontinued operations, net
   of tax                            (184)       (91)     1,766        (83)
  Gain (loss) on disposal of
   assets                           1,030         (6)     6,892     (1,676)
                                ---------  ---------  ---------  ---------
EBITDA                            (32,571)    12,473     (9,140)    23,134
Plus:
Interest income                        66         52        247        290
Less:
  Depreciation and amortization    (4,066)    (3,697)   (16,136)   (15,120)
  Interest expense                 (5,366)    (7,150)   (22,381)   (20,079)
  Change in fair value of
   interest rate swaps             (4,827)    (2,315)    (4,827)      (781)
  (Provision for) benefit from
   income taxes                    16,173       (945)    19,151      4,210
                                ---------  ---------  ---------  ---------
Net loss                        $ (30,591) $  (1,582) $ (33,086) $  (8,346)
                                =========  =========  =========  =========


                               Outstanding
                                    at     Applicable
                               December 31, Interest
                                   2009       Rate
                                ---------  ---------
Selected Debt and Swap Data
95/8% senior subordinated notes $ 300,000       9.63%
Revolving credit facility          15,000       3.73%


(1) Subject to rolling LIBOR plus a spread currently at 3.5% and
    incorporated into the rate set forth above.

Contact Information

  • Company Contact:
    Evan D. Masyr
    Salem Communications
    (805) 987-0400 ext. 1053
    Email Contact