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, 2014

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, 2013 and 2014:


	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2014			2013			2014
	(Dollars in thousands)
Stock option compensation expense included in Corporate expenses	$	234		$	215		$	312		$	620
Restricted stock shares compensation expense included in Corporate expenses		—			—			481			—
Stock option compensation expense included in Broadcast operating expenses		48			64			217			189
Stock option compensation expense included in Internet operating expenses		59			36			133			94
Stock option compensation expense included in Publishing operating expenses		10			14			28			29

Total stock-based compensation expense, pre-tax	$	351		$	329		$	1,171		$	932
Tax provision for stock-based compensation expense		(140	)		(132	)		(468	)		(373	)

Total stock-based compensation expense, net of tax	$	211		$	197		$	703		$	559

Weighted-Average Assumptions Used to Estimate Fair Value of Stock Options and Restricted Stock Awards using Black-Scholes Option 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, 2013 and 2014:


	Three Months Ended June 30,					Six Months Ended June 30,
	2013		2014			2013			2014
Expected volatility		n/a		67.08	%		100.8	%		74.98	%
Expected dividends		n/a		2.82	%		2.05	%		2.70	%
Expected term (in years)		n/a		8.0			6.6			7.8
Risk-free interest rate		n/a		2.21	%		1.06	%		2.27	%

Stock Option

Stock option information with respect to the company’s stock-based equity plans during the six months ended June 30, 2014 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, 2014		2,162,067		$	5.09	$	3.57		5.5 years	$	8,491
Granted		25,000
Exercised		(203,083	)
Forfeited or expired		(70,026	)

Outstanding at June 30, 2014		1,913,958		$	4.85	$	3.39		5.4 years	$	9,092

Exercisable at June 30, 2014		604,213		$	5.72	$	4.14		3.4 years	$	2,537

Expected to Vest		1,243,607		$	4.45	$	3.04		6.3 years	$	6,224