UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date
of
Report (Date of earliest event reported): May 9, 2007
SALEM
COMMUNICATIONS CORPORATION
(Exact
Name of Registrant as Specified in its Charter)
|
Delaware
|
000-26497
|
77-0121400
|
||
|
(State
or Other Jurisdiction
of
Incorporation)
|
(Commission
File Number)
|
(IRS
Employer
Identification
No.)
|
|
4880
Santa Rosa Road, Camarillo, California
|
93012
|
|
|
(Address
of Principal Executive Offices)
|
(Zip
Code)
|
Registrant’s
telephone number, including area code: (805) 987-0400
Not
Applicable
(Former
Name or Former Address, if Changed Since Last Report)
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
[ ]Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ]Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ]Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
[ ]Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
TABLE
OF CONTENTS
ITEM
2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
ITEM
7.01 REGULATION FD DISCLOSURE
ITEM
9.01 FINANCIAL STATEMENTS AND EXHIBITS
EXHIBITS
SIGNATURE
EXHIBIT
INDEX
Exhibit
99.1
ITEM
2.02 RESULTS OF OPERATIONS AND FINANCIAL
CONDITION
On
May 9,
2007, Salem Communications Corporation issued a press release regarding its
results of operations for the quarter ended March 31, 2007.
ITEM
7.01 REGULATION FD DISCLOSURE
On
May 9,
2007, Salem Communications Corporation issued a press release regarding
its results of operations for the quarter ended March 31, 2007.
ITEM
9.01 FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits.
The following exhibit is furnished with this report on Form 8-K:
|
Exhibit
No.
|
Description
|
|
|
99.1
|
Press
release, dated May 9, 2007, of Salem Communications Corporation
regarding its results of operations for the quarter ended March
31,
2007.
|
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.
|
SALEM
COMMUNICATIONS CORPORATION
|
||
|
Date:
May 9, 2007
|
By:
/s/ EVAN D. MASYR
|
|
|
Evan
D. Masyr
|
||
|
Vice
President - Accounting and
Finance
|
EXHIBIT
INDEX
|
Exhibit
No.
|
Description
|
|
|
99.1
|
Press
release, dated May 9, 2007, of Salem Communications Corporation
regarding
its results of operations for the quarter ended March 31,
2007.
|
EXHIBIT
99.1
SALEM
COMMUNICATIONS ANNOUNCES A 7.8% INCREASE IN FIRST QUARTER 2007 TOTAL
REVENUE
CAMARILLO,
Calif. May 9, 2007 - Salem Communications Corporation (Nasdaq: SALM), a
leading U.S. radio broadcaster, Internet content provider, magazine and book
publisher targeting audiences interested in content related to faith, family
and
conservative values, today announced results for the three month period ended
March 31, 2007.
Commenting
on the company’s results, Edward G. Atsinger III, president and CEO said, “We
achieved total revenue growth of 7.8% in the first quarter of 2007 with net
broadcasting revenue growing 3.4% to $50.4 million and the Internet and
publishing businesses growing revenue 73.9% to $5.7 million. Within the radio
business, block programming revenue increased 8.8% and advertising revenue
decreased 1.6%. This advertising decline is principally attributable to high
sales staff vacancies, which we are working to fill, and the continued softness
of the radio advertising market. The solid growth in non-broadcast media
is a
direct result of our strategic emphasis on developing new media businesses
that
exploit the promotional capability and content resources of our radio
assets.”
First
Quarter 2007 Results
For
the
quarter ended March 31, 2007 compared to the quarter ended March 31,
2006:
| · |
Total
revenue increased 7.8% to $56.1 million from $52.0
million;
|
| · |
Operating
income increased 11.2% to $11.9 million from $10.7
million;
|
| · |
Net
income increased 9.2% to $3.0 million from $2.7 million;
|
| · |
Net
income per diluted share increased 9.1% to $0.12 from
$0.11;
|
| · |
EBITDA
increased 11.4% to $15.8 million from $14.1 million;
|
| · |
Adjusted
EBITDA increased 14.2% to $13.2 million from $11.6 million;
|
Broadcasting
| · |
Net
broadcasting revenue increased 3.4% to $50.4 from $48.8
million;
|
| · |
Station
operating income (“SOI”) increased 5.1% to $18.0 million from $17.1
million;
|
| · |
Same
station net broadcasting revenue increased 3.6% to $49.4 million
from
$47.7 million;
|
| · |
Same
station SOI increased 2.9% to $17.9 million from $17.4
million;
|
| · |
Same
station SOI margin decreased to 36.3% from
36.5%;
|
Non-broadcast
Media
| · |
Non-broadcast
revenue increased 73.9% to $5.7 million from $3.3 million;
and
|
| · |
Non-broadcast
operating income increased to $0.4 million from a loss of $0.2
million.
|
Included
in the results for the quarter ended March 31, 2007 are:
| · |
A
$3.3 million gain ($1.8 million gain, net of tax, or $0.07 per diluted
share) on the disposal of assets;
|
| · |
A
$0.8 million non-cash compensation charge ($0.5 million, net of tax,
or
$0.02 per share) related to the expensing of stock options consisting
primarily of:
|
| o |
$0.5
million non-cash compensation included in corporate expenses; and
|
| o |
$0.2
million non-cash compensation included in broadcasting operating
expenses.
|
Included
in the results for the quarter ended March 31, 2006 are:
| · |
A
$3.5 million gain ($2.1 million gain, net of tax, or $0.09 per diluted
share) on the disposal of assets;
|
| · |
A
$0.3 million gain ($0.01 gain per diluted share) from discontinued
operations, net of tax; and
|
| · |
A
$1.3 million non-cash compensation charge ($0.8 million, net of tax,
or
$0.03 per share) related to the expensing of stock options consisting
primarily of:
|
| o |
$1.1
million non-cash compensation included in corporate expenses; and
|
| o |
$0.2
million non-cash compensation included in broadcasting operating
expenses.
|
Per
share
numbers are calculated based on 23,853,068 diluted weighted average shares
for
the quarter ended March 31, 2007 and 24,696,334 diluted weighted average
shares
for the comparable 2006 period.
On
February 7, 2007, we sold WKNR (850 AM) in Cleveland, Ohio. We discontinued
operating this radio station under a local marketing agreement effective
December 1, 2006. For
the
quarter ended March 31, 2007, this station did not generate any revenue or
profit. For the comparable 2006 period, the station generated net broadcasting
revenue of $0.6 million and lost $0.1 million.
SOI
Margin Composition Analysis
The
following table, which is for analytical purposes only, has been created
by
assigning each station in the company’s radio station portfolio to one of four
categories based upon the station’s first quarter SOI margin. The company
believes this table is helpful in assessing the portfolio’s financial and
operational development.
Three
Months Ended March 31,
(Net
Broadcasting Revenue and SOI in millions)
|
2006
|
2007
|
|||||||||||||||
|
Average
|
Average
|
|||||||||||||||
|
SOI
Margin %
|
Stations
|
Revenue
|
SOI
|
SOI
%
|
Stations
|
Revenue
|
SOI
|
SOI
%
|
||||||||
|
50%
or greater
|
14
|
$14.4
|
$9.2
|
63.5%
|
20
|
$18.7
|
$11.5
|
61.4%
|
||||||||
|
30%
to 49%
|
33
|
18.6
|
7.7
|
41.4%
|
26
|
15.1
|
6.1
|
40.4%
|
||||||||
|
0%
to 29%
|
28
|
8.4
|
1.5
|
18.8%
|
26
|
8.4
|
1.6
|
18.0%
|
||||||||
|
Less
than 0%
|
25
|
3.4
|
(1.0)
|
(0.7%)
|
27
|
4.0
|
(0.9)
|
(21.9%)
|
||||||||
|
Subtotal
|
100
|
44.8
|
17.4
|
38.8%
|
99
|
46.2
|
18.3
|
39.4%
|
||||||||
|
Other
|
-
|
4.0
|
(0.3)
|
(7.0%)
|
-
|
4.2
|
(0.3)
|
(5.9%)
|
||||||||
|
Total
|
100
|
$48.8
|
$17.1
|
35.0%
|
99
|
$50.4
|
$18.0
|
35.6%
|
||||||||
Balance
Sheet
As
of
March 31, 2007, the company had net debt of $348.5 million and was in compliance
with the covenants of its credit facilities and bond indentures. The company’s
bank leverage ratio was 5.61 versus a compliance covenant of 6.75 and its
bond
leverage ratio was 5.09 versus a compliance covenant of 7.0.
Stock
Repurchases
During
the quarter ended March 31, 2007, the company did
not
repurchase shares of its Class A common stock
and had
23,850,020 shares of its Class A and Class B common stock
outstanding.
Acquisitions
and Divestitures
During
the quarter ended March 31, 2007, Salem completed the following acquisition
and
divestiture transactions:
| · |
WKNR
(850 AM) in Cleveland, Ohio was sold on February 7, 2007 for $7.0
million;
and
|
| · |
ChristianMusicPlanet.com
was acquired on February 8, 2007 for $0.3
million.
|
The
following acquisition and divestiture transactions were pending as of March
31,
2007:
| · |
WVRY
(105.1 FM) in Waverly, Tennessee to be sold for $0.9 million;
and
|
| · |
KKSN
(910 AM) in Portland, Oregon will be acquired for approximately $4.5
million (this station is operated by Salem under an LMA beginning
February
1, 2007 with call letters KTRO).
|
Second
Quarter 2007 Outlook
For
the
second quarter of 2007, Salem is projecting:
| · |
Total
revenue to be between $58.8 million and $59.3 million compared to
second
quarter 2006 total revenue of $58.1
million;
|
| · |
Adjusted
EBITDA to be between $12.9 million and $13.4 million compared to
second
quarter 2006 Adjusted EBITDA of $15.8 million;
and
|
| · |
Net
income per diluted share to be approximately
$0.04.
|
Second
quarter 2007 outlook reflects the following:
| · |
Same
station net broadcasting revenue to be between $51.9 million to $52.4
million compared to $52.0 million in second quarter
2006;
|
| · |
Non-broadcast
revenue increasing to approximately $6.1 million from $4.7 million in
second quarter 2006;
|
| · |
Same
station SOI declining to between $18.0 million and $18.5 million
from
$20.0 million in second quarter 2006;
|
| · |
Non-cash
compensation expense of $0.8 million compared to second quarter 2006
non-cash compensation expense of $1.3
million;
|
| · |
Increased
marketing and programming costs of $0.9 million primarily on News
Talk
stations in Chicago, Denver, Los Angeles, Louisville and Phoenix,
and on
Contemporary Christian Music stations in Atlanta and
Dallas;
|
| · |
Continued
growth from our core block programming business and our underdeveloped
radio stations, particularly our News Talk
stations;
|
| · |
Ongoing
softness in the radio advertising market;
and
|
| · |
The
impact of recent acquisition and divestiture
transactions.
|
Conference
Call Information
Salem
will host a teleconference to discuss its results today, on May 9, 2007 at
5:00
p.m. Eastern Time. To access the teleconference, please dial 973-935-8511
ten
minutes prior to the start time 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 May 23, 2007 and can be heard by dialing 973-341-3080,
pass code 8745306 or on the investor relations portion of the company’s website,
located at www.salem.cc.
Salem
Communications Corporation (Nasdaq: SALM) is 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.
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 97 radio stations, including
61 stations in 23 of the top 25 markets. Additional information about Salem
may
be accessed at the company’s website, www.salem.cc.
|
Media
Contact:
|
Investor
/ Analyst Contact:
|
|
Denise
Davis
|
Eric
Jones
|
|
Director
of Communications
|
Investor
Relations
|
|
Salem
Communications
|
Salem
Communications
|
|
(805)
987-0400 ext. 1081
|
(805)
987-0400 ext. 1048
|
|
denised@salem.cc
|
ericj@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 broadcasting
revenues minus broadcasting 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 loss on early
redemption of long-term debt, discontinued operations (net of tax), litigation
costs, 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 broadcasting 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 broadcasting. 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
|
||
|
March
31,
|
||
|
2006
|
2007
|
|
|
(unaudited)
|
||
|
|
||
|
Net
broadcasting revenue
|
$
48,774
|
$
50,440
|
|
Non-broadcast
revenue
|
3,252
|
5,654
|
|
Total
revenue
|
52,026
|
56,094
|
|
Operating
expenses:
|
|
|
|
Broadcasting
operating expenses
|
31,694
|
32,483
|
|
Non-broadcast
operating expenses
|
3,432
|
5,271
|
|
Corporate
expenses
|
6,440
|
5,814
|
|
Depreciation
and amortization
|
3,295
|
3,901
|
|
Gain
on disposal of assets
|
(3,529)
|
(3,269)
|
|
Total
operating expenses
|
41,332
|
44,200
|
|
Operating
income
|
10,694
|
11,894
|
|
Other
income (expense):
|
||
|
Interest
income
|
46
|
60
|
|
Interest
expense
|
(6,588)
|
(6,454)
|
|
Other
expense, net
|
(172)
|
(35)
|
|
Income
from continuing operations before income taxes
|
3,980
|
5,465
|
|
Provision
for income taxes
|
1,594
|
2,500
|
|
Income
from continuing operations
|
2,386
|
2,965
|
|
Discontinued
operations, net of tax
|
329
|
-
|
|
Net
income
|
$
2,715
|
$
2,965
|
|
Other
comprehensive income (loss), net of tax
|
1,036
|
(288)
|
|
Comprehensive
income
|
$
3,751
|
$
2,677
|
|
Basic
income per share before discontinued operations
|
$
0.10
|
$
0.12
|
|
Discontinued
operations, net of tax
|
$
0.01
|
$
-
|
|
Basic
income per share after discontinued operations
|
$
0.11
|
$
0.12
|
|
Diluted
income per share before discontinued operations
|
$
0.10
|
$
0.12
|
|
Discontinued
operations, net of tax
|
$
0.01
|
$
-
|
|
Diluted
income per share after discontinued operations
|
$
0.11
|
$
0.12
|
|
Basic
weighted average shares outstanding
|
24,686,517
|
23,848,603
|
|
Diluted
weighted average shares outstanding
|
24,696,334
|
23,853,068
|
|
Other
Data:
|
|
|
|
Station
operating income
|
$
17,080
|
$
17,957
|
|
Station
operating margin
|
35.0%
|
35.6%
|
|
Salem
Communications Corporation
|
||||
|
Condensed
Consolidated Balance Sheets
|
||||
|
(in
thousands)
|
||||
|
December
31,
|
March
31,
|
|||
|
2006
|
2007
|
|||
|
(unaudited)
|
||||
|
Assets
|
||||
|
Cash
|
$
710
|
$
598
|
||
|
Accounts
receivable, net
|
31,984
|
30,214
|
||
|
Deferred
income taxes
|
5,020
|
4,943
|
||
|
Other
current assets
|
2,881
|
2,943
|
||
|
Property,
plant and equipment, net
|
128,713
|
129,620
|
||
|
Intangible
assets, net
|
508,410
|
504,947
|
||
|
Bond
issue costs
|
593
|
556
|
||
|
Bank
loan fees
|
2,996
|
2,741
|
||
|
Fair
value of interest rate swaps
|
1,290
|
913
|
||
|
Other
assets
|
3,667
|
3,770
|
||
|
Total
assets
|
$
686,264
|
$
681,245
|
||
|
Liabilities
and Stockholders' Equity
|
||||
|
Current
liabilities
|
$
27,295
|
$
28,923
|
||
|
Long-term
debt and capital lease obligations
|
358,978
|
346,821
|
||
|
Deferred
income taxes
|
53,935
|
58,114
|
||
|
Other
liabilities
|
8,340
|
8,269
|
||
|
Stockholders'
equity
|
237,716
|
239,118
|
||
|
Total
liabilities and stockholders' equity
|
$
686,264
|
$
681,245
|
||
|
|
|
|
Supplemental
Information
|
|||||
|
(in
thousands)
|
|||||
|
Three
Months Ended
|
|||||
|
March
31,
|
|||||
|
2006
|
2007
|
||||
|
(unaudited)
|
|||||
|
Capital
expenditures
|
|||||
|
Acquisition
related / income producing
|
$
3,273
|
$
2,534
|
|||
|
Maintenance
|
1,757
|
2,650
|
|||
|
Total
capital expenditures
|
$
5,030
|
$
5,184
|
|||
|
Tax
information
|
|||||
|
Cash
tax expense
|
$
-
|
$
168
|
|||
|
Deferred
tax expense
|
1,594
|
2,332
|
|||
|
Provision
for income taxes
|
$
1,594
|
$
2,500
|
|||
|
Tax
benefit of non-book amortization
|
$
3,577
|
$
4,176
|
|||
|
Reconciliation
of Same Station Net Broadcasting Revenue to
|
|||||
|
Total
Net Broadcasting Revenue
|
|||||
|
Net
broadcasting revenue - same station
|
$
47,689
|
$
49,399
|
|||
|
Net
broadcasting revenue - acquisitions
|
172
|
477
|
|||
|
Net
broadcasting revenue - dispositions
|
587
|
-
|
|||
|
Net
broadcasting revenue - format changes
|
326
|
564
|
|||
|
Total
net broadcasting revenue
|
$
48,774
|
$
50,440
|
|||
|
|
|
||||
|
Reconciliation
of Same Station Broadcasting Operating Expenses to
|
|||||
|
Total
Broadcasting Operating Expenses
|
|||||
|
Broadcasting
operating expenses - same station
|
$
30,274
|
$
31,471
|
|||
|
Broadcasting
operating expenses - acquisitions
|
176
|
429
|
|||
|
Broadcasting
operating expenses - dispositions
|
667
|
42
|
|||
|
Broadcasting
operating expenses - format changes
|
577
|
541
|
|||
|
Total
broadcasting operating expenses
|
$
31,694
|
$
32,483
|
|
|
|
|
|
|
||||
|
Reconciliation
of Same Station Station Operating Income to
|
|||||
|
Total
Station Operating Income
|
|||||
|
Station
operating income - same station
|
$
17,415
|
$
17,928
|
|||
|
Station
operating income - acquisitions
|
(4)
|
48
|
|||
|
Station
operating income - dispositions
|
(80)
|
(42)
|
|||
|
Station
operating income - format changes
|
(251)
|
23
|
|||
|
Total
station operating income
|
$
17,080
|
$
17,957
|
|
|
|
|
|
|
||||
|
Salem
Communications Corporation
|
|||||
|
Supplemental
Information
|
|||||
|
(in
thousands)
|
|||||
|
Three
Months Ended
|
|||||
|
March
31,
|
|||||
|
2006
|
2007
|
||||
|
(unaudited)
|
|||||
|
Reconciliation
of Station Operating Income and Non-Broadcast
|
|||||
|
Operating
Income to Operating Income
|
|||||
|
Station
operating income
|
$
17,080
|
$
17,957
|
|||
|
Non-broadcast
operating income
|
(180)
|
383
|
|||
|
Less:
|
|||||
|
Corporate
expenses
|
(6,440)
|
(5,814)
|
|||
|
Depreciation
and amortization
|
(3,295)
|
(3,901)
|
|||
|
Gain
on disposal of assets
|
3,529
|
3,269
|
|||
|
Operating
income
|
$
10,694
|
$
11,894
|
|||
|
Reconciliation
of Adjusted EBITDA to EBITDA to Net Income
|
|||||
|
Adjusted
EBITDA
|
$
11,597
|
$
13,245
|
|||
|
Less:
|
|||||
|
Stock-based
compensation
|
(1,309)
|
(754)
|
|||
|
Discontinued
operations, net of tax
|
329
|
-
|
|||
|
Gain
on disposal of assets
|
3,529
|
3,269
|
|||
|
EBITDA
|
14,146
|
15,760
|
|
||
|
Plus:
|
|||||
|
Interest
income
|
46
|
60
|
|||
|
Less:
|
|||||
|
Depreciation
and amortization
|
(3,295)
|
(3,901)
|
|||
|
Interest
expense
|
(6,588)
|
(6,454)
|
|||
|
Provision
for income taxes
|
(1,594)
|
(2,500)
|
|||
|
Net
income
|
$
2,715
|
$
2,965
|
|||
|
Applicable
|
|||||
|
Outstanding
|
Interest
|
||||
|
at
3/31/2007
|
Rate
|
||||
|
Selected
Debt and Swap Data
|
|||||
|
7
3/4% senior subordinated notes
|
$
100,000
|
7.75%
|
|||
|
Senior
bank term loan B debt (1)
|
73,125
|
7.13%
|
|||
|
Senior
bank term loan C debt (swap matures 7/1/2012) (2)
|
30,000
|
6.74%
|
|||
|
Senior
bank term loan C debt (swap matures 7/1/2012) (2)
|
30,000
|
6.45%
|
|||
|
Senior
bank term loan C debt (swap matures 7/1/2012) (2)
|
30,000
|
6.28%
|
|||
|
Senior
bank term C debt (at variable rates) (1)
|
74,175
|
7.13%
|
|||
|
Senior
bank revolving debt (at variable rates) (1)
|
8,500
|
7.13%
|
|||
|
Swingline
credit facility (3)
|
-
|
8.25%
|
|||
|
|
|||||
|
(1)
Subject to rolling LIBOR plus a spread currently at 1.75% 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 March 31, 2007, that spread was 1.75% and is incorporated
into the applicable interest rates set
|
|||||
|
forth
above.
|
|||||
|
(3)
Subject to prime interest rate.
|
|||||
|
Salem
Communications Corporation
|
|||
|
Supplemental
Information
|
|||
|
(in
millions)
|
|||
|
Projected
|
|||
|
Three
Months Ending
|
Three
Months
|
||
|
June
30, 2007
|
Ended
|
||
|
Low
|
High
|
June
30, 2006
|
|
|
(unaudited)
|
|||
|
Reconciliation
of Station Operating Income to Operating Income
|
|||
|
Station
operating income
|
$
17.9
|
$
18.4
|
|
|
Plus:
|
|||
|
Non-broadcast
revenue
|
6.0
|
6.0
|
|
|
Less:
|
|||
|
Non-broadcast
operating expenses
|
(5.7)
|
(5.7)
|
|
|
Corporate
expenses
|
(5.6)
|
(5.6)
|
|
|
Stock-based
compensation (corporate expense portion)
|
(0.6)
|
(0.6)
|
|
|
Depreciation
and amortization
|
(3.8)
|
(3.8)
|
|
|
Operating
income
|
$
8.2
|
$
8.7
|
|
|
Reconciliation
of Same Station Net Broadcasting Revenue to
|
|||
|
Total
Net Broadcasting Revenue
|
|||
|
Net
broadcasting revenue - same station
|
$
51.9
|
$
52.4
|
$
52.0
|
|
Net
broadcasting revenue - acquisitions / dispositions / format
changes
|
0.8
|
0.8
|
1.4
|
|
Total
net broadcasting revenue
|
$
52.7
|
$
53.2
|
$
53.4
|
|
Reconciliation
of Same Station Station Operating Income to
|
|||
|
Total
Station Operating Income
|
|||
|
Station
operating income - same station
|
$
18.0
|
$
18.5
|
$
20.0
|
|
Station
operating income - acquisitions / dispositions / format
changes
|
(0.1)
|
(0.1)
|
(0.1)
|
|
Total
station operating income
|
$
17.9
|
$
18.4
|
$
19.9
|