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

Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014 Term Loan B	Mar. 31, 2013 Term Loan B	Mar. 31, 2014 Revolver under senior credit facility	Mar. 31, 2013 Revolver under senior credit facility	Mar. 31, 2014 Due 2015	Mar. 31, 2014 Due 2016
OPERATING ACTIVITIES
Net income (loss) from continuing operations	$ 431	$ (18,582)
Adjustments to reconcile net loss from continuing operations to net cash provided by operating activities:
Non-cash stock-based compensation	603	820
Tax benefit related to stock options exercised	69
Depreciation and amortization	4,737	3,815
Amortization of bond issue costs and bank loan fees	172	343
Amortization and accretion of financing items	46	47
Accretion of acquisition-related deferred payments	214
Provision for bad debts	686	802
Deferred income taxes	(28)	(8,694)
Change in the fair value of interest rate swaps	1,096	429
Change in the estimated fair value of contingent earn-out consideration	127
Loss on early retirement of long-term debt	8	27,721
(Gain) loss on the sale or disposal of assets	(117)	4
Changes in operating assets and liabilities:
Accounts receivable	5,084	1,070
Prepaid expenses and other current assets	231	(703)
Accounts payable and accrued expenses	680	(3,631)
Deferred revenue	(3,364)	(1,569)
Other liabilities	(424)	(9)
Income taxes payable	49	(14)
Net cash provided by operating activities	10,300	1,849
INVESTING ACTIVITIES
Capital expenditures	(3,010)	(2,343)
Cash escrow deposits related to acquisitions		424
Purchases of broadcast assets and radio stations	(1,784)	(5,000)
Purchases of Internet businesses and assets	(4,173)
Proceeds from the sale of assets	2
Payment of restricted cash		(970)
Other	129	(26)
Net cash used in investing activities	(8,836)	(7,915)
FINANCING ACTIVITIES
Payments to redeem Terminated 95/8% Notes		(212,597)
Proceeds from borrowings				298,500	8,610	8,537
Repayments of borrowings			(2,250)		(6,291)	(4,537)
Payments of costs related to bank credit facility	(4)	(3,881)
Proceeds from borrowings under terminated credit facilities and subordinated debt		24,070
Payments under terminated credit facilities and subordinated debt		(87,220)
Payments to Terminated Subordinated Debt due to Related Parties		(15,000)
Proceeds from exercise of stock options	467	129
Payments on capital lease obligations	(32)	(31)
Payment of cash distribution on common stock	(1,444)	(1,234)
Book overdraft	(307)	(915)
Net cash provided by (used in) financing activities	(1,251)	5,821
CASH FLOWS FROM DISCONTINUED OPERATIONS
Operating cash flows		(12)
Net cash outflows from discontinued operations		(12)
Net increase (decrease) in cash and cash equivalents	213	(257)
Cash and cash equivalents at beginning of year	65	380
Cash and cash equivalents at end of period	278	123
Cash paid during the period for:
Cash paid for interest, net of capitalized interest (including $296 paid to related parties for the three months ending March 31, 2013)	3,350	5,895
Cash paid for income taxes	8	23
Other supplemental disclosures of cash flow information:
Trade revenue	1,628	1,109
Trade expense	1,367	1,085
Non-cash investing and financing activities:
Seller financed note due directly to seller of station assets		2,000
Estimated present value of contingent earn-out consideration	2,047
Deferred payments due 2014 under asset purchase agreement	200
Present value of deferred cash payments (due 2015)							$ 2,392	$ 2,289