Salem Announces Fourth Quarter 2017 Results
For the quarter ended December 31, 2017 compared to the quarter ended December 31, 2016:
- Total revenue decreased 4.9% to $67.2 million from $70.7 million;
- Total operating expenses decreased 6.8% to $62.7 million from $67.2 million;
- Operating expenses, excluding gains or losses on the sale or disposal of assets, stock-based compensation expense, changes in the estimated fair value of contingent earn-out consideration, impairments, depreciation expense and amortization expense (1) decreased 2.8% to $53.9 million from $55.5 million;
- Operating income increased 31.0% to $4.5 million from $3.5 million;
- Net income increased to $22.4 million, or $0.85 net income per diluted share from $3.0 million, or $0.11 net income per diluted share;
- EBITDA (1) decreased 8.8% to $8.9 million from $9.8 million;
- Adjusted EBITDA (1) decreased 12.6% to $13.3 million from $15.2 million; and
- Net cash provided by operating activities decreased 82.5% to $2.2 million from $12.4 million.
- Net broadcast revenue decreased 2.9% to $50.7 million from $52.2 million;
- Station Operating Income (“SOI”) (1) decreased 9.0% to $14.0 million from $15.4 million;
- Same Station (1) net broadcast revenue decreased 2.4% to $50.6 million from $51.9 million; and
- Same Station SOI (1) decreased 9.0% to $14.1 million from $15.5 million.
The Now Newsletter reports on how Salem is cutting expenses at radio.
Different ideas in different markets. In Louisville, Salem’s now LMAing out its entire cluster. That cost some topline revenue, but the market’s become more profitable. In Boston, selling off WBIX/1260 to the local International Church of the Grace of God earns Salem a profit, since it bought then-Radio Disney O&O WMKI for $500,000 and is selling it to the Portuguese-language church operator for $685,000. Same in Miami, where Salem sells WKAT/1360 to a Haitian operator for $3.5 million. And in Nashville, where Salem has stations like the contemporary Christian “Fish” trimulcast of WFFI/93.7, WFFH/94.1 and WBOZ/104.9, plus three music networks and some publishing. It dropped the magazines and “made organizational changes at the music networks.” Nashville had been losing money, but turned in a $100,000 profit in the latest quarter. We also learn more about Salem’s LMA of two just-sold stations in Portland, Oregon. We knew that last Fall, Pamplin filed to sell talk KPAM/860 and standards KKOV/1550 to Intelli LLC (Tron Dinh Do). But then Salem showed up to LMA the stations. Now we know it began one-year LMAs with them on January 2.