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

Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2023

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


	Three Months Ended March 31, 2023
	Broadcast		Digital Media		Publishing			Consolidated

	(Dollars in thousands)
By Source of Revenue:
Block Programming – National	$	13,526	$	—	$	—		$	13,526
Block Programming – Local		6,017		—		—			6,017

Broadcast Programming Revenue		19,543		—		—			19,543

Spot Advertising – National		2,889		—		—			2,889
Spot Advertising – Local		9,427		—		—			9,427
Network Advertising		5,114		—		—			5,114

Broadcast Advertising Revenue		17,430		—		—			17,430

Infomercials		183		—		—			183
Other Revenue		1,995		—		—			1,995

Other Broadcast Revenue		2,178		—		—			2,178

Digital Advertising		7,284		3,903		—			11,187
Digital Streaming		1,519		861		—			2,380
Digital Downloads		25		1,741		—			1,766
Digital Subscriptions		213		3,983		—			4,196
Other Digital Revenue		148		22		—			170

Digital Revenue		9,189		10,510		—			19,699

Book Sales		—		—		2,864			2,864
Estimated Sales Returns & Allowances		—		—		(489	)		(489	)

Net Book Sales		—		—		2,375			2,375

E-Book Sales		—		—		269			269
Self-Publishing Fees		—		—		1,846			1,846
Other Publishing Revenue		—		—		149			149

Publishing Revenue		—		—		4,639			4,639

	$	48,340	$	10,510	$	4,639		$	63,489

Timing of Revenue Recognition
Point in Time	$	47,885	$	10,510	$	4,639		$	63,034
Rental Income (1)		455		—		—			455

	$	48,340	$	10,510	$	4,639		$	63,489


	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		$	62,004
Rental Income (1)		605		—		—			605

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

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, 2023	$	11,901		$	1,886
Revenue recognized during the period that was included in the beginning balance of contract liabilities		(4,308	)		—
Additional amounts recognized during the period		8,600			3,060
Revenue recognized during the period that was recorded during the period		(3,317	)		—
Transfers		720			(720	)

Balance, end of period March 31, 2023	$	13,596		$	4,226

Amount refundable at beginning of period	$	11,901		$	1,886
Amount refundable at end of period	$	13,596		$	4,226

We expect to satisfy these performance obligations as follows:

Trade and barter revenues and expenses were as follows:


	Three Months Ended March 31,

	2022		2023
Net broadcast barter revenue	$	846	$	736
Net broadcast barter expense	$	759	$	792