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)

9 Months Ended

Sep. 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 nine months ended September 30, 2012 and 2013:


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2012			2013			2012			2013
	(Dollars in thousands)
Stock option compensation expense included in corporate expenses	$	195		$	243		$	652		$	555
Restricted stock compensation expense included in corporate expenses		—			—			—			481
Stock option compensation expense included in broadcast operating expenses		71			43			241			260
Stock option compensation expense included in Internet operating expenses		28			62			87			195
Stock option compensation expense included in publishing operating expenses		5			10			15			38

Total stock-based compensation expense, pre-tax		299		$	358			995		$	1,529
Tax provision for stock-based compensation expense		(119	)		(143	)		(430	)		(611	)

Total stock-based compensation expense, net of tax	$	180		$	215		$	565		$	918

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 nine months ended September 30, 2012 and 2013:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2012	2013	2012	2013
Expected volatility	n/a	n/a	102.4%	100.78%
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 nine months ended September 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	$	8,697
Granted		735,750		$	6.93	$	4.90				994
Exercised		(283,405	)	$	3.42	$	2.36				1,201
Forfeited or expired		(83,424	)	$	12.08	$	7.31				59

Outstanding at September 30, 2013		2,296,020		$	5.03	$	3.54		5.7 years	$	8,255

Exercisable at September 30, 2013		639,204		$	5.87	$	4.22		3.1 years		2,331

Expected to Vest		1,573,147		$	4.70	$	3.28		6.6 years	$	5,625

Information Regarding Restricted Stock

Information regarding the Company’s restricted stock during the nine months ended September 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 September 30, 2013		—		$	—