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

Quarterly report pursuant to Section 13 or 15(d)

Segment Data (Tables)

Segment Data (Tables)

9 Months Ended

Sep. 30, 2021

The table below presents financial information for each operating segment as of September 30, 2021 and 2020 based on the composition of our operating segments:

	Broadcast			Digital Media			Publishing			Unallocated Corporate Expenses			Consolidated

	(Dollars in thousands)
Three Months Ended September 30, 2021
Net revenue	$	49,591		$	10,645		$	5,747		$	—		$	65,983
Operating expenses		37,463			8,269			5,213			4,284			55,229

Net operating income (loss) before depreciation, amortization, and net (gain) loss on the disposition of assets	$	12,128		$	2,376		$	534		$	(4,284	)	$	10,754

Debt modification costs		—			—			—			2,347			2,347
Depreciation		1,539			965			43			241			2,788
Amortization		4			375			48			—			427
Net (gain) loss on the disposition of assets		(10,505	)		(148	)		22			24			(10,607	)

Net operating income (loss)	$	21,090		$	1,184		$	421		$	(6,896	)	$	15,799

Three Months Ended September 30, 2020
Net revenue	$	45,391		$	9,808		$	5,442		$	—		$	60,641
Operating expenses		34,283			7,144			5,814			3,849			51,090

Net operating income (loss) before depreciation, amortization, change in the estimated fair value of contingent earn-out consideration, impairments, and net (gain) loss on the disposition of assets	$	11,108		$	2,664		$	(372	)	$	(3,849	)	$	9,551

Depreciation		1,626			746			70			235			2,677
Amortization		4			537			210			—			751
Change in the estimated fair value of contingent earn-out consideration		—			(10	)		—			—			(10	)
Net (gain) loss on the disposition of assets		1,380			—			1			—			1,381

Net operating income (loss)	$	8,098		$	1,391		$	(653	)	$	(4,084	)	$	4,752

	Broadcast			Digital Media			Publishing			Unallocated Corporate Expenses			Consolidated

	(Dollars in thousands)
Nine Months Ended September 30, 2021
Net revenue	$	140,422		$	30,603		$	18,093		$	—		$	189,118
Operating expenses		106,968			25,280			16,844			12,764			161,856

Net operating income (loss) before depreciation, amortization, change in the estimated fair value of contingent earn-out consideration, impairments, and net (gain) loss on the disposition of assets	$	33,454		$	5,323		$	1,249		$	(12,764	)	$	27,262

Debt modification costs		—			—			—			2,347			2,347
Depreciation		4,667			2,606			134			711			8,118
Amortization		12			1,204			337			—			1,553
Net (gain) loss on the disposition of assets		(10,187	)		(83	)		(306	)		24			(10,552	)

Net operating income (loss)	$	38,962		$	1,596		$	1,084		$	(15,846	)	$	25,796

Nine Months Ended September 30, 2020
Net revenue	$	130,041		$	28,355		$	13,366		$	—		$	171,762
Operating expenses		104,704			23,123			16,443			11,909			156,179

Net operating income (loss) before depreciation, amortization, change in the estimated fair value of contingent earn-out consideration, impairments, and net (gain) loss on the disposition of assets	$	25,337		$	5,232		$	(3,077	)	$	(11,909	)	$	15,583

Depreciation		4,912			2,284			212			700			8,108
Amortization		18			1,928			631			1			2,578
Change in the estimated fair value of contingent earn-out consideration		—			(12	)		—			—			(12	)
Impairment of indefinite-lived long-term assets other than goodwill		16,994			—			260			—			17,254
Impairment of goodwill		184			10			105			8			307
Net (gain) loss on the disposition of assets		1,489			—			1			4			1,494

Net operating income (loss)	$	1,740		$	1,022		$	(4,286	)	$	(12,622	)	$	(14,146	)

	Broadcast		Digital Media		Publishing		Unallocated Corporate		Consolidated

	(Dollars in thousands)
As of September 30, 2021
Inventories, net	$	—	$	—	$	907	$	—	$	907
Property and equipment, net		60,502		8,619		723		8,581		78,425
Broadcast licenses		320,008		—		—		—		320,008
Goodwill		2,750		19,790		1,446		—		23,986
Amortizable intangible assets, net		233		2,552		—		—		2,785
As of December 31, 2020
Inventories, net	$	—	$	—	$	495	$	—	$	495
Property and equipment, net		64,231		6,221		741		7,929		79,122
Broadcast licenses		319,773		—		—		—		319,773
Goodwill		2,746		19,565		1,446		—		23,757
Amortizable intangible assets, net		246		3,434		337		—		4,017