SOURCE: Salem Communications Corporation

Salem Communications Corporation

November 08, 2010 16:10 ET

Salem Communications Announces Third Quarter 2010 Total Revenue of $51.4 Million

CAMARILLO, CA--(Marketwire - November 8, 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 nine months ended September 30, 2010.

Third Quarter 2010 Results

For the quarter ended September 30, 2010 compared to the quarter ended September 30, 2009:

Consolidated

  • Total revenue increased 4.4% to $51.4 million from $49.2 million;
  • Operating expenses decreased 21.0% to $43.2 million from $54.7 million;
  • Operating expenses excluding impairment of indefinite-lived intangible assets, cost of denied tower site and abandoned projects and loss on disposal of assets increased 6.7% to $43.2 million from $40.5 million;
  • Operating income from continued operations increased to $8.2 million from a loss of $5.5 million;
  • Net income increased to $0.3 million, or $0.01 net income per diluted share, from a loss of $4.6 million, or $0.19 net loss per share in the prior year;
  • EBITDA increased to $11.9 million from a loss of $0.2 million; and
  • Adjusted EBITDA decreased 2.1% to $12.3 million from $12.6 million.

Broadcast

  • Net broadcast revenue increased 2.7% to $43.5 million from $42.4 million;
  • Station operating income ("SOI") increased 2.6% to $15.6 million from $15.2 million;
  • Same station net broadcast revenue increased 2.3% to $43.2 million from $42.2 million;
  • Same station SOI increased 2.0% to $15.6 million from $15.3 million; and
  • Same station SOI margin decreased to 36.0% from 36.1%.

Non-broadcast

  • Non-broadcast revenue increased 15.0% to $7.9 million from $6.9 million; and
  • Non-broadcast operating income decreased 29.3% to $0.5 million from $0.7 million.

Included in the results for the quarter ended September 30, 2010 are:

  • 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.

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

  • A $14.1 million impairment of indefinite-lived assets ($8.5 million, net of tax, or $0.35 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 ($0.5 million, net of tax, or $0.04 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 $0.04 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.

These results reflect the reclassification of the operations of our Milwaukee, Wisconsin radio stations to discontinued operations for the three months ended September 30, 2009 and the reclassification of WRFD-AM, Columbus, Ohio, into operations from discontinued operations.

Per share numbers are calculated based on 24,822,412 diluted weighted average shares for the quarter ended September 30, 2010, and 23,933,940 diluted weighted average shares for the quarter ended September 30, 2009.

Year to Date 2010 Results

For the nine months ended September 30, 2010 compared to the nine months ended September 30, 2009:

Consolidated

  • Total revenue increased 3.0% to $152.8 million from $148.4 million;
  • Operating expenses decreased 16.4% to $126.5 million from $151.4 million;
  • Operating expenses excluding impairment of indefinite-lived intangible assets, cost of denied tower site and abandoned projects and loss on disposal of assets increased 4.7% to $126.5 million from $120.8 million;
  • Operating income from continued operations increased to $26.4 million from a loss of $3.0 million;
  • Net income increased to $1.2 million, or $0.05 net income per diluted share, from a loss of $6.8 million, or $0.28 net loss per share in the prior year;
  • EBITDA increased to $36.2 million from $10.7 million; and
  • Adjusted EBITDA decreased 2.5% to $38.4 million from $39.3 million.

Broadcast

  • Net broadcast revenue increased 1.3% to $130.4 million from $128.7 million;
  • Station operating income ("SOI") increased 1.4% to $47.5 million from $46.8 million;
  • Same station net broadcast revenue increased 1.1% to $129.7 million from $128.3 million;
  • Same station SOI increased 1.2% to $47.6 million from $47.0 million; and
  • Same station SOI margin increased to 36.7% from 36.6%.

Non-broadcast

  • Non-broadcast revenue increased 14.2% to $22.5 million from $19.7 million; and
  • Non-broadcast operating income decreased 14.6% to $1.9 million from $2.3 million.

Included in the results for the nine months ended September 30, 2010 are:

  • A $1.1 million loss ($0.6 million, net of tax, or $0.03 per share) on early redemption of long-term debt due to the repurchase of $17.5 million of our 9 5/8% senior secured second lien notes due in 2016; and
  • A $1.1 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:
    • $0.7 million non-cash compensation included in corporate expenses;
    • $0.3 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 months ended September 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 $27.8 million impairment of indefinite-lived assets ($16.7 million, net of tax, or $0.70 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 ($1.0 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 $0.06 per diluted 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 $0.04 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; 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.

These results reflect the reclassification of the operations of our Milwaukee, Wisconsin radio stations to discontinued operations for the nine months ended September 30, 2009 and the reclassification of WRFD-AM, Columbus, Ohio, into operations from discontinued operations.

Per share numbers are calculated based on 24,602,258 diluted weighted average shares for the nine months ended September 30, 2010, and 23,760,505 diluted weighted average shares for the nine months ended September 30, 2009.

Balance Sheet

As of September 30, 2010, the company had $282.5 million of 9 5/8% senior secured second lien notes outstanding and had $17.5 million drawn on its revolver. The company was in compliance with the covenants of its credit facility and bond indenture. The company's bank leverage ratio was 5.69 versus a compliance covenant of 7.0.

Acquisitions and Divestitures

The following transactions were completed since July 1, 2010:

  • On September 28, 2010, we received approximately $1.0 million as compensation for loss of our property rights for our back up transmitter site for KSKY-AM under an Eminent Domain Petition from the Dallas Independent School District;
  • On September 1, 2010, we acquired Samaritan Fundraising, a web-based fundraising products company, for $0.6 million in cash plus $0.2 million contingent consideration payable in the future based on achieving established financial benchmarks; and
  • On August 3, 2010, we completed the acquisition of WWRC-AM in Washington DC for $3.1 million.

The following transactions are currently pending:

  • On November 1, 2010, we amended our Revolver to allow us to use borrowings under the Revolver, subject to the "Available Amount" as defined by the terms of the Credit Agreement, to redeem applicable portions of our 9 5/8% Senior Secured Second Lien Notes. The calculation of the "Available Amount" also pertains to the payment of dividends when the leverage ration is above 5.0 to 1. Additionally, we increased the total capacity of the Revolver from $30.0 million to $40.0 million;
  • On November 1, 2010, we launched a redemption of $12.5 million of our 9 5/8% Senior Secured Second Lien Notes at a price of 103. We expect the redemption to close on December 1, 2010;
  • On October 15, 2010, we entered into an agreement to sell radio station KKMO-AM in Seattle, Washington for $2.7 million. The sale is subject to the approval of the FCC and is expected to close in the first quarter of 2011;
  • On September 23, 2010, we entered into an agreement to sell radio station, WAMD-AM, Aberdeen, Maryland, for $1. The sale is expected to close in the fourth quarter of 2010; and
  • On June 24, 2010, we entered into an agreement to sell radio station KXMX-AM, Los Angeles, California, for $12.0 million. The sale is expected to close in the fourth quarter of 2010.

Conference Call Information

Salem will host a teleconference to discuss its results on November 8, 2010 at 2:00 p.m. Pacific Time. To access the teleconference, please dial (913) 312-1405, passcode 5465800 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 November 22, 2010 and can be heard by dialing (719) 457-0820, passcode 5465800 or on the investor relations portion on the company's website, located at www.salem.cc.

Fourth Quarter 2010 Outlook

For the fourth quarter of 2010, Salem is projecting total revenue to increase 3% to 5% over fourth quarter 2009 total revenue of $50.8 million. Salem is also projecting operating expenses before gain or loss on disposal of assets and impairments to increase 5% to 8% as compared to the fourth quarter of 2009 operating expenses of $40.1 million.

Salem Communications Corporation is the largest commercial U.S. radio broadcasting company that provides programming targeted at audiences interested in Christian and family-themed radio content, as measured by the number of stations and audience coverage. Upon completion of all announced transactions, the company will own and/or operate a national portfolio of 93 radio stations in 36 markets, including 58 stations in 22 of the top 25 markets. We also program the Family Talk™ Christian-themed talk format on XM Radio, channel 170 and beginning November 30, 2010, on SIRIUS, Channel 161.

Salem also owns Salem Radio Network, a national radio network that syndicates talk, news and music programming to approximately 2,000 affiliated radio stations and Salem Media Representatives, a national media advertising sales firm with offices across the country.

In addition to its radio broadcast business, Salem owns a non-broadcast media division. Salem Web Network is a provider of online Christian and conservative-themed content and streaming and includes websites such as Christian faith focused Christianity.com, Christian living focused Crosswalk.com®, Online Bible Study at BibleStudyTools.com, and Christian radio ministries online at OnePlace.com. Additionally Salem owns conservative news leader Townhall.com® and conservative political blog, HotAir.com providing conservative commentary, news and blogging. Salem Publishing™ circulates Christian and conservative magazines such as Homecoming® The Magazine, YouthWorker Journal™, The Singing News, FaithTalk Magazine, Preaching and Townhall Magazine™. Xulon Press™ is a provider of self publishing services targeting the Christian audience.

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, change in fair value of interest rate swaps, depreciation and amortization. Adjusted EBITDA is defined as EBITDA before discontinued operations (net of tax), impairment of indefinite-lived intangible assets, cost of denied tower site and abandoned projects, loss on the disposal of assets, gain on bargain purchase, gain or loss on early redemption of long-term debt 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 data and margin                                                  
 data)
                              Three Months Ended      Nine Months Ended   
                                 September 30,           September 30,     
                             ----------------------  ---------------------- 
                                2009        2010        2009        2010   
                             ----------  ----------  ----------  ---------- 
                                               (Unaudited)                  
Net broadcast revenue        $   42,368  $   43,507  $  128,708  $  130,386 
Non-broadcast revenue             6,856       7,883      19,667      22,452 
                             ----------  ----------  ----------  ---------- 
Total revenue                    49,224      51,390     148,375     152,838 
Operating expenses:                                                         
  Broadcast operating                                                       
   expenses                      27,194      27,940      81,900      82,921 
  Non-broadcast operating                                                   
   expenses                       6,163       7,393      17,400      20,516 
  Corporate expenses              3,440       4,154      10,054      12,140 
  Cost of denied tower site                                                 
   and abandoned projects            --          --       1,111          -- 
  Impairment of indefinite-                                                 
   lived intangible assets       14,146          --      27,809          -- 
  Depreciation and                                                          
   amortization                   3,679       3,713      11,423      10,890 
  Loss on disposal of assets         54          18       1,670          13 
                             ----------  ----------  ----------  ---------- 
Total operating expenses         54,676      43,218     151,367     126,480 
                             ----------  ----------  ----------  ---------- 
Operating income (loss)          (5,452)      8,172      (2,992)     26,358 
Other income (expense):                                                     
  Interest income                    91          48         238         142 
  Interest expense               (4,291)     (7,435)    (12,929)    (22,903)
  Change in fair value of                                                   
   interest rate swaps             (842)         --       1,534          -- 
  Gain on bargain purchase        1,634          --       1,634          -- 
  Gain (loss) on early                                                      
   redemption of long-term                                                  
   debt                              --          --         660      (1,050)
  Other expense, net                (24)         13         (72)        (18)
                             ----------  ----------  ----------  ---------- 
Income (loss) from                                                          
 continuing operations                                                      
 before income taxes             (8,884)        798     (11,927)      2,529 
Provision for (benefit from)                                                
 income taxes                    (4,253)        455      (5,155)      1,284 
                             ----------  ----------  ----------  ---------- 
Income (loss) from                                                          
 continuing operations           (4,631)        343      (6,772)      1,245 
Income (loss) from                                                          
 discontinued operations,                                                   
 net of tax                          (5)         --           8          -- 
                             ----------  ----------  ----------  ---------- 
Net income (loss)            $   (4,636) $      343  $   (6,764) $    1,245 
                             ==========  ==========  ==========  ========== 
                                                                            
Basic income (loss) per                                                     
 share before discontinued                                                  
 operations                  $    (0.19) $     0.01  $    (0.29) $     0.05 
Income from discontinued                                                    
 operations, net of tax              --          --          --          -- 
Basic income (loss) per                                                     
 share after discontinued                                                   
 operations                  $    (0.19) $     0.01  $    (0.28) $     0.05 
                                                                            
Diluted income (loss) per                                                   
 share before discontinued                                                  
 operations                  $    (0.19) $     0.01  $    (0.29) $     0.05 
Income from discontinued                                                    
 operations, net of tax              --          --          --          -- 
Diluted income (loss) per                                                   
 share after discontinued                                                   
 operations                  $    (0.19) $     0.01  $    (0.28) $     0.05 
                                                                            
Basic weighted average        
 shares outstanding          23,933,940  24,357,042  23,760,505  23,966,797 
                             ==========  ==========  ==========  ========== 
Diluted weighted average      
 shares outstanding          23,933,940  24,822,412  23,760,505  24,602,258 
                             ==========  ==========  ==========  ========== 
                                                                            
Other Data:                                                                 
Station operating income     $   15,174  $   15,567  $   46,808  $   47,465 
Station operating margin           35.8%       35.8%       36.4%       36.4%




Salem Communications Corporation                                            
Condensed Consolidated Balance Sheets                                       
(in thousands)                                                              
                                               December 31,   September 30,
                                                   2009            2010    
                                              --------------  --------------
                                                               (Unaudited) 
                                                                            
Assets                                                                      
Cash                                          $        8,945  $        1,035
Restricted cash                                          100             100
Trade accounts receivable, net                        27,289          28,014
Deferred income taxes                                  4,700           5,631
Other current assets                                   3,459           4,617
Property, plant and equipment, net                   121,174         117,123
Intangible assets, net                               397,801         404,730
Bond issue costs                                       7,078           6,659
Bank loan fees                                         1,515           1,203
Other assets                                           6,984           6,586
                                              --------------  --------------
Total assets                                  $      579,045  $      575,698
                                              ==============  ==============
                                                                            
Liabilities and Stockholders' equity                                        
Current liabilities                                   20,373          26,951
Long-term debt and capital lease obligations         313,969         299,261
Deferred income taxes                                 38,973          40,882
Other liabilities                                      8,531           8,638
Stockholders' equity                                 197,199         199,966
                                              --------------  --------------
Total liabilities and stockholders' equity    $      579,045  $      575,698
                                              ==============  ==============
                                                                            



Salem Communications Corporation                                            
Supplemental Information                                                    
(in thousands)
                                 Three Months Ended    Nine Months Ended  
                                    September 30,         September 30,    
                                 --------------------  -------------------- 
                                   2009       2010       2009       2010   
                                 ---------  ---------  ---------  --------- 
                                                 (Unaudited)                
Capital expenditures                                                        
Acquisition related / income                                                
 producing                       $      --  $     218  $     295  $     659 
Maintenance                            945      1,862      2,700      5,207 
                                 ---------  ---------  ---------  --------- 
Total capital expenditures       $     945  $   2,080  $   2,995  $   5,866 
                                 =========  =========  =========  ========= 
                                                                            
Tax information                                                             
Cash tax expense                 $      38  $       1  $     318  $     235 
Deferred tax expense (benefit)      (4,291)       454     (5,473)     1,049 
                                 ---------  ---------  ---------  --------- 
Provision for (benefit from)                                                
 income taxes                    $  (4,253) $     455  $  (5,155) $   1,284 
                                 =========  =========  =========  ========= 
                                                                            
Tax benefit of non-book                                                     
 amortization                    $   1,876  $   2,616  $   6,142  $   7,863 
                                 =========  =========  =========  ========= 
                                                                            
Reconciliation of Same Station                                              
 Net Broadcast Revenue to Total                                             
 Net Broadcast Revenue                                                      
                                                                            
Net broadcast revenue - same                                                
 station                         $  42,228  $  43,204  $ 128,285  $ 129,682 
Net broadcast revenue -                                                     
 acquisitions                           --        145          6        235 
Net broadcast revenue -                                                     
 dispositions                            3         --          5         -- 
Net broadcast revenue - format                                              
 changes                               137        158        412        469 
                                 ---------  ---------  ---------  --------- 
Total net broadcast revenue      $  42,368  $  43,507  $ 128,708  $ 130,386 
                                 =========  =========  =========  ========= 
                                                                            
Reconciliation of Same Station                                              
 Broadcast Operating Expenses to                                            
 Total Broadcast Operating                                                  
 Expenses                                                                   
                                                                            
Broadcast operating expenses -                                              
 same station                    $  26,977  $  27,641  $  81,307  $  82,128 
Broadcast operating expenses -                                              
 acquisitions                           (1)       113         --        250 
Broadcast operating expenses -                                              
 dispositions                           35         16         56         16 
Broadcast operating expenses -                                              
 format changes                        183        170        537        527 
                                 ---------  ---------  ---------  --------- 
Total broadcast operating                                                   
 expenses                        $  27,194  $  27,940  $  81,900  $  82,921 
                                 =========  =========  =========  ========= 
                                                                            
Reconciliation of Same Station                                              
 Operating Income to Total                                                  
 Station Operating Income                                                   
                                                                            
Station operating income - same                                             
 station                         $  15,251  $  15,563  $  46,978  $  47,554 
Station operating income -                                                  
 acquisitions                            1         32          6        (15)
Station operating income -                                                  
 dispositions                          (32)       (16)       (51)       (16)
Station operating income -                                                  
 format changes                        (46)       (12)      (125)       (58)
                                 ---------  ---------  ---------  --------- 
Total station operating income   $  15,174  $  15,567  $  46,808  $  47,465 
                                 =========  =========  =========  ========= 





Salem Communications Corporation                                         
Supplement Information                                                    
(in thousands)
                        Three Months Ended          Nine Months Ended     
                           September 30,               September 30,       
                     --------------------------  -------------------------- 
                         2009          2010          2009          2010    
                     ------------  ------------  ------------  ------------ 
                                           (Unaudited)                      
Reconciliation of                                                           
 SOI and Non-                                                               
 Broadcast Operating                                                        
 Income to Operating                                                        
 Income (Loss)                                                              
                                                                            
Station operating                                                           
 income              $     15,174  $     15,567  $     46,808  $     47,465 
Non-broadcast                                                               
 operating income             693           490         2,267         1,936 
Less:                                                                       
  Corporate expenses       (3,440)       (4,154)      (10,054)      (12,140)
  Cost of denied                                                            
   tower site and                                                           
   abandoned                                                                
   projects                    --            --        (1,111)           -- 
  Impairment of                                                             
   indefinite-lived                                                         
   intangible assets      (14,146)           --       (27,809)           -- 
  Depreciation and                                                          
   amortization            (3,679)       (3,713)      (11,423)      (10,890)
  Loss on disposal                                                          
   of assets                  (54)          (18)       (1,670)          (13)
                     ------------  ------------  ------------  ------------ 
Operating income                                                            
 (loss)              $     (5,452) $      8,172  $     (2,992) $     26,358 
                     ============  ============  ============  ============ 
                                                                            
Reconciliation of                                                           
 Adjusted EBITDA to                                                         
 EBITDA to Net                                                              
 Income (Loss)
                                                              
Adjusted EBITDA      $     12,552  $     12,289  $     39,328  $     38,352 
Less:                                                                       
  Stock-based                                                               
   compensation              (149)         (373)         (379)       (1,109)
  Cost of denied                                                            
   tower site and                                                           
   abandoned                                                                
   projects                    --            --        (1,111)           -- 
  Gain on bargain                                                           
   purchase                 1,634            --         1,634            -- 
  Impairment of                                                             
   indefinite-lived                                                         
   intangible assets      (14,146)           --       (27,809)           -- 
  Gain (loss) on                                                            
   early redemption                                                         
   of long-term debt           --            --           660        (1,050)
  Discontinued                                                              
   operations, net                                                          
   of tax                      (5)           --             8            -- 
  Loss on disposal                                                          
   of assets                  (54)          (18)       (1,670)          (13)
                     ------------  ------------  ------------  ------------ 
EBITDA                       (168)       11,898        10,661        36,180 
Plus:                                                                       
  Interest income              91            48           238           142 
Less:                                                                       
  Depreciation and                                                          
   amortization            (3,679)       (3,713)      (11,423)      (10,890)
  Interest expense         (4,291)       (7,435)      (12,929)      (22,903)
  Change in fair                                                            
   value of interest                                                        
   rate swaps                (842)           --         1,534            -- 
  Provision for                                                             
   (benefit from)                                                           
   income taxes             4,253          (455)        5,155        (1,284)
                     ------------  ------------  ------------  ------------ 
Net income (loss)    $     (4,636) $        343  $     (6,764) $      1,245 
                     ============  ============  ============  ============ 
                                                                            
                     Outstanding    Applicable                             
                     at September    Interest                              
                       30, 2010        Rate                                
                     ------------  ------------                             
Selected Debt and                                                           
 Swap Data                                                                  
9 5/8% senior                                                               
 subordinated notes  $    282,500          9.63%                            
Revolving credit                                                            
 facility            $     17,500          3.76%      
                      

Contact Information

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