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	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
OPERATING ACTIVITIES
Net income			$ (1,029)	$ 24,674
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Non-cash stock-based compensation	$ 54	$ 78	228	240
Depreciation and amortization			9,500	9,671
Amortization of deferred financing costs			732	690
Non-cash lease expense			6,631	6,527
Provision for bad debts			(437)	(248)
Deferred income taxes			(1,260)	404
Change in the estimated fair value of contingent earn-out consideration	0	0	(5)	0
Impairment of indefinite-lived long-term assets other than goodwill	7,725	0	11,660	0
Impairment of goodwill	0	0	127	0	$ 0
Gain on the forgiveness of PPP loans	0	(11,212)	0	(11,212)
Gain (loss) on the early retirement of long-term debt	0	56	18	56
Net (gain) loss on the disposition of assets	167	(10,607)	(8,461)	(10,552)
Changes in operating assets and liabilities:
Accounts receivable and unbilled revenue			(5,806)	(67)
Inventories			(497)	(412)
Prepaid expenses and other current assets			(1,664)	(1,218)
Accounts payable and accrued expenses			9,742	2,596
Operating lease liabilities			(6,626)	(7,317)
Contract liabilities			(803)	782
Deferred rent income			(116)	28
Other liabilities			(518)	41
Income taxes payable			(1,404)	63
Net cash provided by operating activities			10,012	14,746
INVESTING ACTIVITIES
Cash paid for capital expenditures net of tenant improvement allowances			(9,241)	(6,952)
Capital expenditures reimbursable under tenant improvement allowances and trade agreements			(58)	(138)
Deposit on broadcast assets and radio station acquisitions			(750)	(100)
Purchases of broadcast assets and radio stations			(548)	(600)
Return of equity investment in OnePartyAmerica LLC			4,500	0
Equity investment in OnePartyAmerica LLC			(3,500)	(1,000)
Proceeds from sale of long-lived assets			14,151	15,771
Other			62	(227)
Net cash provided by investing activities			4,426	2,774
FINANCING ACTIVITIES
Proceeds from 2028 Notes			0	114,731
Payments to repurchase or exchange 2024 Notes			(15,394)	(119,443)
Proceeds from borrowings under PPP Loans			0	11,195
Payments under PPP loans			0	17
Payments of debt issuance costs			(38)	(1,921)
Payments of acquisition-related contingent earn-out consideration			(4)	0
Proceeds from the exercise of stock options			98	405
Payments on financing lease liabilities			(47)	(48)
Net cash used in financing activities			(15,385)	(64)
Net increase (decrease) in cash and cash equivalents			(947)	17,456
Cash and cash equivalents at beginning of year			1,785	6,325	6,325
Cash and cash equivalents at end of period	$ 838	$ 23,781	838	23,781	$ 1,785
Supplemental disclosures of cash flow information:
Cash paid for interest, net of capitalized interest			6,209	9,628
Cash paid for interest on finance lease liabilities			5	6
Net cash paid for (received from) income taxes			1,429	13
Other supplemental disclosures of cash flow information:
Barter revenue			2,118	1,647
Barter expense			2,104	1,699
Non-cash investing and financing activities:
Capital expenditures reimbursable under tenant improvement allowances			58	138
Right-of-use assets acquired through operating leases			7,522	3,466
Right-of-use assets acquired through financing leases			20	17
Non-cash capital expenditures for property & equipment acquired under trade agreements			0	27
Net assets and liabilities assumed in a non-cash acquisition			0	311
Estimated present value of contingent-earn out consideration			2	11
Abl Facility [Member]
FINANCING ACTIVITIES
Proceeds from borrowings under ABL Facility			26,231	16
Payments on ABL Facility			(26,231)	(5,016)
Digital Media [Member]
INVESTING ACTIVITIES
Purchases of digital media businesses and assets			$ (190)	$ (3,980)