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

Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2022

The following table presents our revenues disaggregated by revenue source for each of our operating segments:


	Three Months Ended March 31, 2022
	Broadcast		Digital Media		Publishing			Consolidated
	(Dollars in thousands)
By Source of Revenue:
Block Programming – National	$	13,059	$	—	$	—		$	13,059
Block Programming – Local		6,173		—		—			6,173

Broadcast Programming Revenue		19,232		—		—			19,232

Spot Advertising – National		3,641		—		—			3,641
Spot Advertising – Local		10,283		—		—			10,283
Network Advertising		4,831		—		—			4,831

Broadcast Advertising Revenue		18,755		—		—			18,755

Infomercials		191		—		—			191
Other Revenue		2,048		—		—			2,048

Other Broadcast Revenue		2,239		—		—			2,239

Digital Advertising		6,636		4,539		—			11,175
Digital Streaming		1,190		901		—			2,091
Digital Downloads		43		1,664		—			1,707
Digital Subscriptions		257		3,152		—			3,409
Other Digital Revenue		80		44		—			124

Digital Revenue		8,206		10,300		—			18,506

Book Sales		—		—		2,561			2,561
Estimated Sales Returns & Allowances		—		—		(835	)		(835	)

Net Book Sales		—		—		1,726			1,726

E-Book Sales		—		—		287			287
Self-Publishing Fees		—		—		1,727			1,727
Other Publishing Revenue		—		—		137			137

Publishing Revenue		—		—		3,877			3,877

	$	48,432	$	10,300	$	3,877		$	62,609

Timing of Revenue Recognition
Point in Time	$	47,827	$	10,300	$	3,877		$	62,003
Rental Income(1)		605		—		—			605

	$	48,432	$	10,300	$	3,877		$	62,609

The following table presents our revenues disaggregated by revenue source for each of our operating segments:


	Three Months Ended March 31, 2021
	Broadcast		Digital Media		Publishing		Consolidated
	(Dollars in thousands)
By Source of Revenue:
Block Programming – National	$	11,461	$	—	$	—	$	11,461
Block Programming – Local		5,956		—		—		5,956

Broadcast Programming Revenue		17,417		—		—		17,417

Spot Advertising – National		3,660		—		—		3,660
Spot Advertising – Local		8,895		—		—		8,895
Network Advertising		4,871		—		—		4,871

Broadcast Advertising Revenue		17,426		—		—		17,426

Infomercials		237		—		—		237
Other Revenue		1,899		—		—		1,899

Other Broadcast Revenue		2,136		—		—		2,136

Digital Advertising		5,781		4,413		62		10,256
Digital Streaming		853		844		—		1,697
Digital Downloads		60		1,510		—		1,570
Digital Subscriptions		286		2,773		—		3,059
Other Digital Revenue		89		79		—		168

Digital Revenue		7,069		9,619		62		16,750

Book Sales		—		—		4,301		4,301


Estimated Sales Returns & Allowances		—		—		(1,093	)		(1,093	)

Net Book Sales		—		—		3,208			3,208

E-Book Sales		—		—		339			339
Self-Publishing Fees		—		—		1,624			1,624
Publishing Magazine Subscriptions		—		—		158			158
Other Publishing Revenue		—		—		295			295

Publishing Revenue		—		—		5,624			5,624

	$	44,048	$	9,619	$	5,686		$	59,353

Timing of Revenue Recognition
Point in Time	$	43,425	$	9,619	$	5,686		$	58,730
Rental Income(1)		623		—		—			623

	$	44,048	$	9,619	$	5,686		$	59,353

Significant changes in our contract liabilities balances during the period are as follows:


	Short Term			Long-Term
	(Dollars in thousands)
Balance, beginning of period January 1, 2022	$	12,294		$	2,222
Revenue recognized during the period that was included in the beginning balance of contract liabilities		(4,085	)		—
Additional amounts recognized during the period		6,315			315
Revenue recognized during the period that was recorded during the period		(2,409	)		—
Transfers		477			(477	)

Balance, end of period March 31, 2022	$	12,592		$	2,060

Amount refundable at beginning of period	$	12,282		$	2,222
Amount refundable at end of period	$	12,580		$	2,060

We expect to satisfy these performance obligations as follows:

Trade and barter revenues and expenses were as follows:


	Three Months Ended March 31,
	2021		2022
Net broadcast barter revenue	$	391	$	846
Net digital media barter revenue		—		—
Net publishing barter revenue		—		—
Net broadcast barter expense	$	373	$	759
Net digital media barter expense		—		—
Net publishing barter expense		—		—