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, 2023

The table below presents financial information for each operating segment as of September 30, 2023 and 2022 based on the composition of our operating segments:


	Broadcast			Digital Media			Publishing			Unallocated Corporate Expenses			Consolidated

	(Dollars in thousands)
Three Months Ended September 30, 2023
Net revenue	$	48,966		$	9,965		$	4,566		$	—		$	63,497
Operating expenses		42,171			8,496			5,939			4,514			61,120

Net operating income (loss) before depreciation, amortization, impairments, and net (gain) loss on the disposition of assets	$	6,795		$	1,469		$	(1,373	)	$	(4,514	)	$	2,377

Depreciation		1,594			990			60			172			2,816
Amortization		—			536			25			—			561
Change in the estimated fair value of contingent earn-out consideration		—			(100	)		—			—			(100	)
Impairment of indefinite-lived long-term assets other than goodwill		35,113			—			—			—			35,113
Impairment of goodwill		—			423			310			—			733
Net (gain) loss on the disposition of assets		(456	)		—			—			—			(456	)

Net operating income (loss)	$	(29,456	)	$	(380	)	$	(1,768	)	$	(4,686	)	$	(36,290	)

Three Months Ended September 30, 2022
Net revenue	$	51,136		$	10,189		$	5,537		$	—		$	66,862
Operating expenses		41,178			8,333			6,542			4,840			60,893

Net operating income (loss) before legal settlement, debt modification costs, depreciation, amortization, impairments, and net (gain) loss on the disposition of assets	$	9,958		$	1,856		$	(1,005	)	$	(4,840	)	$	5,969

Legal settlement		3,825			—			—			—			3,825
Debt modification costs		—			—			—			2			2
Depreciation		1,483			927			76			251			2,737
Amortization		4			293			—			—			297
Impairment of indefinite-lived long-term assets other than goodwill		7,725			—			—			—			7,725
Impairment of goodwill		—			—			—			—			—
Net (gain) loss on the disposition of assets		166			1			—			—			167

Net operating income (loss)	$	(3,245	)	$	635		$	(1,081	)	$	(5,093	)	$	(8,784	)


	Broadcast			Digital Media			Publishing			Unallocated Corporate Expenses			Consolidated

	(Dollars in thousands)
Nine Months Ended September 30, 2023
Net revenue	$	146,986		$	31,335		$	14,439		$	—		$	192,760
Operating expenses		128,498			26,516			17,341			14,165			186,520

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	$	18,488		$	4,819		$	(2,902	)	$	(14,165	)	$	6,240

Depreciation		4,779			3,022			183			556			8,540
Amortization		2			1,674			75			—			1,751
Change in the estimated fair value of contingent earn-out consideration		—			(102	)		—			—			(102	)
Impairment of indefinite-lived long-term assets other than goodwill		38,376			—			—			—			38,376
Impairment of goodwill		—			2,270			310			—			2,580
Net (gain) loss on the disposition of assets		(336	)		—			—			2			(334	)

Net operating income (loss)	$	(24,333	)	$	(2,045	)	$	(3,470	)	$	(14,723	)	$	(44,571	)

Nine Months Ended September 30, 2022
Net revenue	$	152,020		$	31,293		$	14,840		$	—		$	198,153
Operating expenses		120,837			25,079			16,441			14,431			176,788

Net operating income (loss) before legal settlement, debt modification costs, depreciation, amortization, impairments, and net (gain) loss on the disposition of assets	$	31,183		$	6,214		$	(1,601	)	$	(14,431	)	$	21,365


Legal settlement		4,776			—			—			—			4,776
Debt modification costs		—			—			—			250			250
Depreciation		4,669			2,847			245			776			8,537
Amortization		12			951			—			—			963
Change in the estimated fair value of contingent earn-out consideration		—			(5	)		—			—			(5	)
Impairment of indefinite-lived long-term assets other than goodwill		11,660			—			—			—			11,660
Impairment of goodwill		127			—			—			—			127
Net (gain) loss on the disposition of assets		(8,491	)		—			—			30			(8,461	)

Net operating income (loss)	$	18,430		$	2,421		$	(1,846	)	$	(15,487	)	$	3,518


	Broadcast		Digital Media		Publishing		Unallocated Corporate		Consolidated

	(Dollars in thousands)
As of September 30, 2023
Inventories, net	$	—	$	—	$	1,383	$	—	$	1,383
Property and equipment, net		65,607		4,952		432		9,086		80,077
Broadcast licenses		260,193		—		—		—		260,193
Goodwill		2,702		18,927		1,137		—		22,766
Amortizable intangible assets, net		—		4,051		224		—		4,275
As of December 31, 2022
Inventories, net	$	—	$	—	$	1,513	$	—	$	1,513
Property and equipment, net		63,634		7,751		546		9,365		81,296
Broadcast licenses		303,774		—		—		—		303,774
Goodwill		2,623		20,016		1,446		—		24,085
Amortizable intangible assets, net		213		1,637		299		—		2,149