SOURCE: Salem Communications Corporation

Salem Communications Corporation

August 06, 2009 18:36 ET

Salem Communications Announces Second Quarter 2009 Total Revenue of $50.1 Million

CAMARILLO, CA--(Marketwire - August 6, 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 six months ended June 30, 2009.

Second Quarter 2009 Results

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

--  Total revenue decreased 12.8% to $50.1 million from $57.5 million;
--  Operating expenses, including impairment of goodwill and indefinite-
    lived assets and cost of denied tower site and abandoned projects,
    increased 20.2% to $56.7 million from $47.1 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 14.6% to $40.3 million from $47.1
    million;
--  Operating loss from continued operations was $6.5 million in the
    current quarter as compared to operating income of $10.3 million in the
    prior year;
--  Net loss was $5.0 million, or $0.21 net loss per share, compared to
    net income of $3.5 million, or $0.15 net income per diluted share;
--  EBITDA was a loss of $2.0 million for the quarter as compared to
    earnings of $14.8 million; and
--  Adjusted EBITDA decreased 6.9% to $13.7 million from $14.7 million.
    

Broadcast

--  Net broadcast revenue decreased 12.8% to $43.6 million from $49.9
    million;
--  Station operating income ("SOI") decreased 12.6% to $15.8 million from
    $18.0 million;
--  Same station net broadcast revenue decreased 13.2% to $42.2 million
    from $48.7 million;
--  Same station SOI decreased 12.0% to $15.6 million from $17.7 million;
    and
--  Same station SOI margin increased to 37.0% from 36.5%.
    

Non-broadcast

--  Non-broadcast revenue decreased 13.0% to $6.5 million from $7.5
    million; and
--  Non-broadcast operating income increased to $1.1 million from $0.7
    million.
    

Included in the results for the quarter ended June 30, 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 $13.7 million impairment of goodwill and indefinite-lived assets
    ($9.0 million, net of tax, or $0.38 per share) consisting of a $12.5
    million impairment of radio broadcasting licenses and goodwill in our
    Dallas and Portland markets and a $1.2 million impairment of goodwill and
    mastheads in our non-broadcast segment;
--  A $1.6 million loss ($1.1 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 $2.3 million benefit ($1.5 million, net of tax, or $0.10 per diluted
    share) related to the change in fair value of our interest rate swaps;
--  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 $0.1 million non-cash compensation charge ($0.1 million, net of tax)
    related to the expensing of stock options; and
--  A $0.1 million income, net of tax, from discontinued operations of a
    radio station in Columbus, Ohio.
    

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

-- A $0.6 million income ($0.03 gain per diluted share), net of tax,
   from discontinued operations primarily consisting of:
   -- 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 CCM Magazine; and
-- A $0.6 million non-cash compensation charge ($0.3 million, net of tax,
   or $0.01 per share) related to the expensing of stock options
   consisting primarily of:
   -- $0.4 million non-cash compensation included in corporate
      expenses; and
   -- $0.1 million non-cash compensation included in 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 $0.5 million and generated a profit of $0.1 million for the quarter ended June 30, 2008 and net broadcast revenue of approximately $0.4 million and generated a profit of $0.1 million for the quarter ended June 30, 2009.

Additionally, these results reflect the reclassification of the operations of CCM Magazine to discontinued operations. The magazine had non-broadcast revenue of $0.1 million and generated no profit for the quarter ended June 30, 2008.

The company had no other comprehensive income or loss for the quarter ended June 30, 2009 due to the interest rate swaps becoming ineffective during the fourth quarter of 2008. This is compared to other comprehensive income of $2.0 million, net of tax, for the quarter ended June 30, 2008 due to the change in fair market value of the company's interest rate swaps.

Per share numbers are calculated based on 23,673,788 diluted weighted average shares for the quarter ended June 30, 2009, and 23,668,788 diluted weighted average shares for the quarter ended June 30, 2008.

Year to Date 2009 Results

For the six month period ended June 30, 2009 compared to the six month period ended June 30, 2008:

--  Total revenue decreased 11.7% to $98.4 million from $111.5 million;
--  Operating expenses, including impairment of goodwill and indefinite-
    lived assets and cost of denied tower site and abandoned projects,
    increased 8.8% to $96.1 million from $88.4 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 15.5% to $79.7 million from $94.4
    million;
--  Operating loss from continued operations was $2.3 million as compared
    to operating income $23.2 million;
--  Net loss was $2.1 million, or $0.09 net loss per share, compared to
    net income of $8.5 million, or $0.36 net income per diluted share;
--  EBITDA decreased 67.3% to $10.8 million from $32.9 million; and
--  Adjusted EBITDA increased 1.6% to $26.6 million from $26.2 million.
    

Broadcast

--  Net broadcast revenue decreased 12.5% to $85.6 million from $97.9
    million;
--  SOI decreased 7.9% to $31.5 million from $34.2 million;
--  Same station net broadcast revenue decreased 12.9% to $82.5 million
    from $94.7 million;
--  Same station SOI decreased 6.8% to $31.0 million from $33.3 million;
    and
--  Same station SOI margin increased to 37.6% from 35.2%.
    

Non-broadcast

--  Non-broadcast revenue decreased 6.2% to $12.8 million from $13.7
    million; and
--  Non-broadcast operating income increased to $1.6 million from $0.6
    million.
    

Included in the results for the six month period ended June 30, 2009 are:

-- A $1.1 million charge ($0.8 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 $13.7 million impairment of goodwill and indefinite-lived assets
   ($9.6 million, net of tax, or $0.41 per share) consisting of a
   $12.5 million impairment of radio broadcasting licenses and goodwill
   in our Dallas and Portland markets and a $1.2 million impairment of
   goodwill and mastheads in our non-broadcast segment;
-- A $1.6 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 $2.4 million benefit ($1.7 million, net of tax, or $0.10 per
   diluted share) related to the change in fair value of our interest
   rate swaps;
-- A $0.7 million gain ($0.5 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 $0.1 million income, net of tax, from discontinued operations
   of a radio station in Columbus, Ohio; and
-- A $0.2 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:
   -- $0.1 million non-cash compensation included in corporate
      expenses; and
   -- $0.1 million non-cash compensation included in broadcast operating
      expenses.

Included in the results for the six month period ended June 30, 2008 are:

-- A $6.0 million gain primarily from the disposal of the assets of
   KTEK-AM in Houston, Texas ($3.4 million gain, net of tax, or $0.14
   per diluted share);
-- 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 $1.3 million non-cash compensation charge ($0.7 million, net of tax,
   or $0.03 per share) related to the expensing of stock options
   consisting of:
   -- $1.0 million non-cash compensation included in corporate expenses;
   -- $0.2 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 $1.3 million and generated a profit of $0.1 million for the six months ended June 30, 2008 and net broadcast revenue of approximately $0.7 million and generated a profit of $0.1 million for the six months ended June 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 six months ended June 30, 2008.

The company had no other comprehensive income or loss for the six months ended June 30, 2009 due to the interest rate swaps becoming ineffective during the fourth quarter of 2008. Other comprehensive loss $0.2 million, net of tax, for the six months ended June 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 23,673,788 diluted weighted average shares for the six months ended June 30, 2009 and 23,668,788 diluted weighted average shares for the comparable 2008 period.

Balance Sheet

As of June 30, 2009, the company had net debt of $301.5 million and was in compliance with the covenants of its credit facilities and bond indentures. The company's bank leverage ratio was 5.25 versus a compliance covenant of 5.75 and its bond leverage ratio was 5.27 versus a compliance covenant of 7.0.

Acquisitions and Divestitures

The following transactions were completed since April 1, 2009:

--  KPXI (100.7 FM) in Tyler-Longview, Texas was sold for $0.4 million
    which resulted in a pre-tax loss of $1.6 million.
--  On July 12, 2008, we entered an agreement to purchase radio station
    WZAB-AM in Miami, Florida for $1.4 million.  We began operating the station
    under a Local Marketing Agreement ("LMA") agreement effective October 1,
    2008.  On July 20, 2009, we amended the Asset Purchase Agreement to reduce
    the purchase price to $1.0 million.  The purchase was approved by the FCC
    and closed on July 24, 2009.
    

The following transaction is currently pending:

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

Third Quarter 2009 Outlook

For the third quarter of 2009, Salem is projecting total revenue to decrease 12% to 15% over third quarter 2008 total revenue of $54.4 million. Salem is also projecting operating expenses before gain or loss on disposal of assets and impairments to decline 12% to 15% as compared to the third quarter of 2008 operating expenses of $48.2 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 Radio 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       Six Months Ended
                                   June 30,                June 30,
                               2008        2009        2008        2009
                            ----------  ----------  ----------  ----------
                                              (unaudited)

Net broadcast revenue       $   49,938  $   43,570  $   97,855  $   85,601
Non-broadcast revenue            7,521       6,545      13,654      12,806
                            ----------  ----------  ----------  ----------
Total revenue                   57,459      50,115     111,509      98,407
Operating expenses:
  Broadcast operating
   expenses                     31,905      27,801      63,692      54,145
    Cost of denied tower
     site and abandoned
     projects                        -       1,111           -       1,111
  Non-broadcast operating
   expenses                      6,847       5,439      13,087      11,237
  Corporate expenses             4,482       3,271       9,759       6,614
    Impairment of goodwill
     and indefinite-lived
     assets                          -      13,663           -      13,663
  Depreciation and
   amortization                  3,903       3,763       7,818       7,744
  (Gain) loss on disposal
   of assets                        10       1,615      (6,004)      1,616
                            ----------  ----------  ----------  ----------
Total operating expenses        47,147      56,663      88,352      96,130
                            ----------  ----------  ----------  ----------
Operating income (loss)         10,312      (6,548)     23,157       2,277
Other income (expense):
  Interest income                  113          73         134         147
  Interest expense              (5,488)     (4,279)    (11,562)     (8,638)
  Ineffectiveness of
   interest rate swaps               -       2,296           -       2,376
  Gain on early redemption
   of long-term debt                 -         660           -         660
  Other income (expense),
   net                             (49)        (27)       (100)        (48)
                            ----------  ----------  ----------  ----------
Income (loss) from
 continuing operations
 before income taxes             4,888      (7,825)     11,629      (3,226)
Provision for (benefit
 from) income taxes              1,996      (2,699)      5,135        (955)
                            ----------  ----------  ----------  ----------
Income (loss) from
 continuing operations           2,892      (5,126)      6,494      (2,271)
Discontinued operations,
 net of tax                        632         109       2,053         143
                            ----------  ----------  ----------  ----------
Net income (loss)           $    3,524  $   (5,017) $    8,547  $   (2,128)
                            ==========  ==========  ==========  ==========
Other comprehensive income
 (loss), net of tax              1,961           -        (183)          -
                            ----------  ----------  ----------  ----------
Comprehensive income (loss) $    5,485  $   (5,017) $    8,364  $   (2,128)
                            ==========  ==========  ==========  ==========

Basic income (loss) per
 share before discontinued
 operations                 $     0.12  $    (0.22) $     0.27  $    (0.10)
Discontinued operations,
 net of tax                 $     0.03  $        -  $     0.09  $     0.01
Basic income (loss) per
 share after discontinued
 operations                 $     0.15  $    (0.21) $     0.36  $    (0.09)

Diluted income (loss) per
 share before discontinued
 operations                 $     0.12  $    (0.22) $     0.27  $    (0.10)
Discontinued operations,
 net of tax                 $     0.03  $        -  $     0.09  $     0.01
Diluted income (loss) per
 share after discontinued
 operations                 $     0.15  $    (0.21) $     0.36  $    (0.09)

Basic weighted average
 shares outstanding         23,668,788  23,673,788  23,668,788  23,673,788
                            ==========  ==========  ==========  ==========
Diluted weighted average
 shares outstanding         23,668,788  23,673,788  23,668,788  23,673,788
                            ==========  ==========  ==========  ==========

Other Data:
Station operating income    $   18,033  $   15,769  $   34,163  $   31,456
Station operating margin          36.1%       36.2%       34.9%       36.7%








Salem Communications Corporation
Condensed Consolidated Balance Sheets
(in thousands)


                                                  December 31,   June 30,
                                                      2008         2009
                                                  ------------ ------------
                                                               (unaudited)
Assets
Cash                                              $      1,892 $     20,409
Trade accounts receivable, net                          28,530       25,458
Deferred income taxes                                    5,670        6,158
Other current assets                                     2,844        2,147
Assets of discontinued operations                          204          204
Property, plant and equipment, net                     133,706      126,214
Intangible assets, net                                 423,709      409,815
Bond issue costs                                           268          197
Bank loan fees                                             981        1,683
Other assets                                             9,914        7,097
                                                  ------------ ------------
Total assets                                      $    607,718 $    599,382
                                                  ============ ============

Liabilities and Stockholders' Equity
Current liabilities                               $     22,897 $     92,250
Long-term debt and capital lease obligations           329,507      254,453
Deferred income taxes                                   43,106       42,639
Other liabilities                                        9,092        8,559
Stockholders' equity                                   203,116      201,481
                                                  ------------ ------------
Total liabilities and stockholders' equity        $    607,718 $    599,382
                                                  ============ ============






Salem Communications Corporation
Supplemental Information
(in thousands)
Capital expenditures
                                    Three Months Ended   Six Months Ended
                                         June 30,            June 30,
                                      2008      2009      2008      2009
                                    --------  --------  --------- --------
                                                  (unaudited)
Acquisition related / income
 producing                          $  1,427  $    108  $   2,801 $    295
Maintenance                            1,056     1,320      2,613    1,755
                                    --------  --------  --------- --------
Total capital expenditures          $  2,483  $  1,428  $   5,414 $  2,050
                                    ========  ========  ========= ========

Tax information
Cash tax expense                    $    371  $    272  $     309 $    280
Deferred tax expense                   1,625    (2,971)     4,826   (1,235)
                                    --------  --------  --------- --------
Provision for (benefit from) income
 taxes                              $  1,996  $ (2,699) $   5,135 $   (955)
                                    ========  ========  ========= ========

Tax benefit of non-book
 amortization                       $  3,714  $  3,013  $   7,841 $  5,857
                                    ========  ========  ========= ========

Reconciliation of Same Station Net
 Broadcast Revenue to Total Net
 Broadcast Revenue
Net broadcast revenue - same
 station                            $ 48,683  $ 42,243  $  94,658 $ 82,494
Net broadcast revenue -
 acquisitions                              -       210          -      376
Net broadcast revenue -
 dispositions                            124         6        417        8
Net broadcast revenue - format
 changes                               1,131     1,111      2,780    2,723
                                    --------  --------  --------- --------
Total net broadcast revenue         $ 49,938  $ 43,570  $  97,855 $ 85,601
                                    ========  ========  ========= ========

Reconciliation of Same Station
 Broadcast Operating Expenses to
 Total Broadcast Operating Expenses
Broadcast operating expenses - same
 station                            $ 30,937  $ 26,623  $  61,358 $ 51,467
Broadcast operating expenses -
 acquisitions                              -       180          -      324
Broadcast operating expenses -
 dispositions                            182         1        362       12
Broadcast operating expenses -
 format changes                          786       997      1,972    2,342
                                    --------  --------  --------- --------
Total broadcast operating expenses  $ 31,905  $ 27,801  $  63,692 $ 54,145
                                    ========  ========  ========= ========

Reconciliation of Same Station
 Operating Income to Total Station
 Operating Income
Station operating income - same
 station                            $ 17,746  $ 15,620  $  33,300 $ 31,027
Station operating income -
 acquisitions                              -        30          -       52
Station operating income -
 dispositions                            (58)        5         55       (4)
Station operating income - format
 changes                                 345       114        808      381
                                    --------  --------  --------- --------
Total station operating income      $ 18,033  $ 15,769  $  34,163 $ 31,456
                                    ========  ========  ========= ========






Salem Communications Corporation
Supplemental Information
(in thousands)

                              Three Months Ended       Six Months Ended
                                   June 30,                June 30,
                               2008        2009        2008        2009
                            ----------  ----------  ----------  ----------
                                              (unaudited)
Reconciliation of Station
 Operating Income and
 Non-Broadcast Operating
 Income to Operating Income
 (Loss)
Station operating income    $   18,033  $   15,769  $   34,163  $   31,456
Non-broadcast operating
 income                            674       1,106         567       1,569
Less:
  Corporate expenses            (4,482)     (3,271)     (9,759)     (6,614)
  Depreciation and
   amortization                 (3,903)     (3,763)     (7,818)     (7,744)
  Cost of denied tower site
   and abandoned projects            -      (1,111)          -      (1,111)
  Impairment of goodwill
   and indefinite-lived
   assets                            -     (13,663)          -     (13,663)
  Gain (loss) on disposal
   of assets                       (10)     (1,615)      6,004      (1,616)
                            ----------  ----------  ----------  ----------

Operating income (loss)     $   10,312  $   (6,548) $   23,157  $    2,277
                            ==========  ==========  ==========  ==========

Reconciliation of Adjusted
 EBITDA to EBITDA
 to Net Income (Loss)
Adjusted EBITDA             $   14,745  $   13,724  $   26,186  $   26,593
Less:
  Stock-based compensation        (569)       (147)     (1,315)       (230)
  Impairment of goodwill
   and indefinite-lived
   assets                            -     (13,663)          -     (13,663)
  Cost of denied tower site
   and abandoned projects            -      (1,111)          -      (1,111)
  Gain on early redemption
   of long-term debt                 -         660           -         660
  Discontinued operations,
   net of tax                      632         109       2,053         143
  Gain (loss) on disposal
   of assets                       (10)     (1,615)      6,004      (1,616)
                            ----------  ----------  ----------  ----------
EBITDA                          14,798      (2,043)     32,928      10,776
Plus:
  Interest income                  113          73         134         147
Less:
  Depreciation and
   amortization                 (3,903)     (3,763)     (7,818)     (7,744)
  Interest expense              (5,488)     (4,279)    (11,562)     (8,638)
  Change in fair value of
   interest rate swaps               -       2,296           -       2,376
  Provision for (benefit
   from) income taxes           (1,996)      2,699      (5,135)        955
                            ----------  ----------  ----------  ----------
Net income (loss)           $    3,524  $   (5,017) $    8,547  $   (2,128)
                            ==========  ==========  ==========  ==========


                           Outstanding  Applicable
                           at June 30,   Interest
                               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        1.88%
  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        1.88%

(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 June 30, 2009, that spread was 1.50% and is incorporated into the
    applicable interest rates set forth above.

Contact Information

  • Company Contact:
    Tomasita Solis
    Salem Communications
    (805) 987-0400 ext. 1067
    tomasitaa@salem.cc