Salem Media Group, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

STOCK INCENTIVE PLAN (Tables)

STOCK INCENTIVE PLAN (Tables)

6 Months Ended

Jun. 30, 2013

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation Expense Recognized

The following table reflects the components of stock-based compensation expense recognized in the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2012 and 2013:


	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2013			2012			2013
	(Dollars in thousands)
Stock option compensation expense included in corporate expenses	$	250		$	234		$	457		$	312
Restricted stock compensation expense included in corporate expenses		—			—			—			481
Stock option compensation expense included in broadcast operating expenses		83			48			170			217
Stock option compensation expense included in Internet operating expenses		31			59			59			133
Stock option compensation expense included in Publishing operating expenses		5			10			10			28

Total stock-based compensation expense, pre-tax		369		$	351			696		$	1,171
Tax provision for stock-based compensation expense		(168	)		(140	)		(311	)		(468	)

Total stock-based compensation expense, net of tax	$	201		$	211		$	385		$	703

Weighted-Average Assumptions used to Estimate Fair Value of Stock Options and Restricted Stock Awards using Black-Scholes Valuation Model

The weighted-average assumptions used to estimate the fair value of the stock options and restricted stock awards using the Black-Scholes valuation model were as follows for the three and six months ended June 30, 2012 and 2013:

Three Months Ended June 30,

Six Months Ended June 30,

2012

2013

2012

2013

Expected volatility

n/a

n/a

102.4

100.8

Expected dividends

n/a

n/a

5.07

2.05

Expected term (in years)

n/a

n/a

8.2

6.6

Risk-free interest rate

n/a

n/a

1.66

1.06

Stock Option

Stock option information with respect to the company’s stock-based equity plans during the six months ended June 30, 2013 is as follows (Dollars in thousands, except weighted average exercise price and weighted average grant date fair value):


Options	Shares			Weighted Average Exercise Price		Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at January 1, 2013		1,927,099		$	4.37	$	3.45		5.4 years	$	3,899
Granted		735,750		$	6.93	$	4.90
Exercised		(170,745	)	$	3.36	$	5.56
Forfeited or expired		(81,774	)	$	11.94	$	7.23

Outstanding at June 30, 2013		2,410,330		$	4.97	$	3.62		5.8 years		7,016

Exercisable at June 30, 2013		635,389		$	6.13	$	4.55		2.9 years		1,793

Expected to Vest		1,685,306		$	4.55	$	3.28		6.8 years		4,960

Information Regarding Restricted Stock

Information regarding the Company’s restricted stock during the six months ended June 30, 2013 is as follows:


Restricted Stock	Shares			Weighted Average Grant Date Fair Value
Outstanding at January 1, 2013		—		$	—
Granted		79,810			6.02
Vested		(79,810	)		6.02
Forfeited		—			—

Non-Vested at June 30, 2013		—		$	—