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

Quarterly report pursuant to Section 13 or 15(d)

Revenue Recognition (Tables)

Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Abstract]

Reconciliation of Revenue from Segments to Consolidated

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


	Nine Months Ended September 30, 2023
	Broadcast		Digital Media		Publishing			Consolidated

	(Dollars in thousands)
By Source of Revenue:
Block Programming – National	$	40,324	$	—	$	—		$	40,324
Block Programming – Local		18,291		—		—			18,291

Broadcast Programming Revenue		58,615		—		—			58,615

Spot Advertising – National		8,743		—		—			8,743
Spot Advertising – Local		29,229		—		—			29,229
Network Advertising		15,351		—		—			15,351

Broadcast Advertising Revenue		53,323		—		—			53,323

Infomercials		492		—		—			492
Other Revenue		6,670		—		—			6,670

Other Broadcast Revenue		7,162		—		—			7,162

Digital Advertising		22,468		11,637		—			34,105
Digital Streaming		4,284		2,505		—			6,789
Digital Downloads		164		5,321		—			5,485
Digital Subscriptions		616		11,760		—			12,376
Other Digital Revenue		354		112		—			466

Digital Revenue		27,886		31,335		—			59,221

Book Sales		—		—		8,718			8,718
Estimated Sales Returns & Allowances		—		—		(554	)		(554	)

Net Book Sales		—		—		8,164			8,164

E-Book Sales		—		—		737			737
Self-Publishing Fees		—		—		5,002			5,002
Other Publishing Revenue		—		—		536			536

Publishing Revenue		—		—		14,439			14,439

	$	146,986	$	31,335	$	14,439		$	192,760

Timing of Revenue Recognition
Point in Time	$	145,657	$	31,335	$	14,439		$	191,431
Rental Income (1)		1,329		—		—			1,329

	$	146,986	$	31,335	$	14,439		$	192,760


	Nine Months Ended September 30, 2022
	Broadcast		Digital Media		Publishing			Consolidated

	(Dollars in thousands)
By Source of Revenue:
Block Programming – National	$	39,998	$	—	$	—		$	39,998
Block Programming – Local		18,183		—		—			18,183

Broadcast Programming Revenue		58,181		—		—			58,181

Spot Advertising – National		11,344		—		—			11,344
Spot Advertising – Local		31,915		—		—			31,915
Network Advertising		15,961		—		—			15,961

Broadcast Advertising Revenue		59,220		—		—			59,220

Infomercials		569		—		—			569
Other Revenue		6,789		—		—			6,789

Other Broadcast Revenue		7,358		—		—			7,358

Digital Advertising		21,042		13,453		—			34,495
Digital Streaming		3,915		2,687		—			6,602
Digital Downloads		546		5,485		—			6,031
Digital Subscriptions		731		9,549		—			10,280
Other Digital Revenue		1,027		119		—			1,146

Digital Revenue		27,261		31,293		—			58,554

Book Sales		—		—		10,816			10,816
Estimated Sales Returns & Allowances		—		—		(2,799	)		(2,799	)

Net Book Sales		—		—		8,017			8,017

E-Book Sales		—		—		937			937
Self-Publishing Fees		—		—		5,189			5,189
Other Publishing Revenue		—		—		697			697

Publishing Revenue		—		—		14,840			14,840

	$	152,020	$	31,293	$	14,840		$	198,153

Timing of Revenue Recognition
Point in Time	$	150,352	$	31,293	$	14,840		$	196,485
Rental Income (1)		1,668		—		—			1,668

	$	152,020	$	31,293	$	14,840		$	198,153

(1)	Rental income is not applicable to FASB ASC Topic 606, but shown for the purpose of identifying each revenue source presented in total revenue on our Condensed Consolidated Financial Statements within this report on Form 10 -Q.

Significant Changes in Our Contract Liabilities

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		(9,039	)		—
Additional amounts recognized during the period		21,346			3,131
Revenue recognized during the period that was recorded during the period		(12,966	)		—
Transfers		1,483			(1,483	)

Balance, end of period September 30, 2023	$	12,725		$	3,534

Amount refundable at beginning of period	$	11,901		$	1,886
Amount refundable at end of period	$	12,725		$	3,534

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction

We expect to satisfy these performance obligations as follows:


	Amount
For the Year Ended September 30,	(Dollars in thousands)
2024	$	12,725
2025		1,311
2026		1,336
2027		387
2028		112
Thereafter		388

	$	16,259

Trade and Barter Transactions Expenses

Trade and barter revenues and expenses were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2023		2022		2023

	(Dollars in thousands)
Net broadcast barter revenue	$	593	$	842	$	2,118	$	2,394
Net broadcast barter expense	$	472	$	719	$	2,104	$	2,299