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

Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended		6 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Jun. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
OPERATING ACTIVITIES
Net income (loss)				$ (132)	$ 2,286
Adjustments to reconcile net income to net cash provided by operating activities:
Non-cash stock-based compensation	$ 191	$ 268		363	1,693
Depreciation and amortization				13,634	12,591
Amortization of deferred financing costs				855	645
Accretion of financing items					74
Accretion of acquisition-related deferred payments and contingent consideration				24	32
Provision for bad debts				1,498	1,548
Deferred income taxes				(301)	1,409
Change in the fair value of interest rate swap					(357)
Change in the estimated fair value of contingent earn-out consideration		(12)		72	(54)
Impairment of indefinite-lived long-term assets other than goodwill			$ 19	0	19
(Gain) loss on early retirement of long-term debt				(234)	2,775
(Gain) loss on the disposition of assets	(759)	95		4,400	(410)
Changes in operating assets and liabilities:
Accounts receivable and unbilled revenue				(3,829)	(463)
Inventories				(161)	(139)
Prepaid expenses and other current assets				(560)	(1,001)
Accounts payable and accrued expenses				7,224	5,152
Deferred rent expense				(304)	(3)
Contract liabilities				(2,380)	(577)
Other liabilities				(40)	(3)
Income taxes payable				69	(49)
Net cash provided by operating activities				20,198	25,168
INVESTING ACTIVITIES
Cash paid for capital expenditures net of tenant improvement allowances				(6,513)	(6,800)
Capital expenditures reimbursable under tenant improvement allowances and trade agreements				(77)	(50)
Escrow deposits paid related to acquisitions					(30)
Purchases of broadcast assets and radio stations				(6,534)	(1,662)
Purchases of digital media businesses and assets				(4,320)	(1,690)
Proceeds from sale of assets				8,518	602
Other				(398)	(224)
Net cash used in investing activities				(9,324)	(9,854)
FINANCING ACTIVITIES
Payments to repurchase 6.75% Senior Secured Notes				(9,550)
Payment of interest rate swap					(783)
Proceeds from bond offering					255,000
Payment of debt issuance costs				(11)	(6,837)
Payments of acquisition-related contingent earn-out consideration				(140)	(14)
Payments of deferred installments due from acquisition activity					(225)
Proceeds from the exercise of stock options				43	501
Payments of capital lease obligations				(73)	(93)
Payment of cash distribution on common stock				(5,104)	(5,089)
Book overdraft				2,775	(1,053)
Net cash used in financing activities				(10,860)	(15,440)
Net increase (decreased) in cash and cash equivalents				14	(126)
Cash and cash equivalents at beginning of year			$ 130	3	130	$ 130
Cash and cash equivalents at end of period	$ 17	$ 4		17	4	$ 3
Supplemental disclosures of cash flow information:
Cash paid for interest, net of capitalized interest				8,794	4,962
Cash paid for income taxes, net of refunds				99	128
Other supplemental disclosures of cash flow information:
Barter revenue				5,018	4,152
Barter expense				4,223	4,012
Non-cash investing and financing activities:
Capital expenditures reimbursable under tenant improvement allowances				77	50
Net assets acquired and liabilities assumed in a non-cash acquisition					2,852
Deferred payments on acquisitions				326
Assets acquired under capital lease				56	16
Non-cash capital expenditures for property & equipment acquired under trade agreements				90
Debt issuance costs accrued					132
Revolver and ABL Facility [Member]
FINANCING ACTIVITIES
Proceeds from borrowings under Revolver and ABL Facility				111,337	60,133
Debt repayment				$ (110,137)	(53,980)
Term Loan B [Member]
FINANCING ACTIVITIES
Debt repayment					$ (263,000)