Salem Media Group, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

SEGMENT DATA (Tables)

SEGMENT DATA (Tables)

12 Months Ended

Dec. 31, 2016

The table below presents financial information for each operating segment as of December 31, 2016, 2015 and 2014 based on the new composition of our operating segments:

			Digital				Unallocated
	Broadcast		Media		Publishing		Corporate		Consolidated
	(Dollars in thousands)
Year Ended December 31, 2016
Net revenue	$	202,016	$	46,777	$	25,528	$		$	274,321
Operating expenses		146,283		36,290		26,209		14,994		223,776
Net operating income (loss) before depreciation, amortization, impairments, change in estimated fair value of contingent earn-out consideration (gain) loss on the sale or disposal of assets	$	55,733	$	10,487	$	(681)	$	(14,994)	$	50,545
Depreciation		7,592		3,092		675		846		12,205
Amortization		86		4,304		680		1		5,071
Impairment of long-lived assets		700								700
Impairment of indefinite-lived long-term assets other than goodwill		6,540				501				7,041
Impairment of goodwill				32						32
Impairment of amortizable intangible assets				8						8
Change in estimated fair value of contingent earn-out consideration				(146)		(543)				(689)
(Gain) loss on the sale or disposal of assets		(2,122)		236		(21)		6		(1,901)
Operating income (loss)	$	42,937	$	2,961	$	(1,973)	$	(15,847)	$	28,078

Year Ended December 31, 2015
Net revenue	$	197,184	$	44,761	$	23,842	$		$	265,787
Operating expenses		140,819		35,380		24,774		15,146		216,119
Net operating income (loss) before depreciation, amortization, impairments, change in estimated fair value of contingent earn-out consideration (gain) loss on the sale or disposal of assets	$	56,365	$	9,381	$	(932)	$	(15,146)	$	49,668
Depreciation		7,726		3,091		637		963		12,417
Amortization		96		4,685		542		1		5,324
Impairment of goodwill		439								439
Change in estimated fair value of contingent earn-out consideration				(478)		(1,237)				(1,715)
(Gain) loss on the sale or disposal of assets		219		11		(58)		9		181
Operating income (loss)	$	47,885	$	2,072	$	(816)	$	(16,119)	$	33,022

Year Ended December 31, 2014
Net revenue	$	194,094	$	45,691	$	26,751	$		$	266,536
Operating expenses		139,206		35,590		26,143		17,092		218,031
Net operating income (loss) before depreciation, amortization, impairments, change in estimated fair value of contingent earn-out consideration (gain) loss on the sale or disposal of assets	$	54,888	$	10,101	$	608	$	(17,092)	$	48,505
Depreciation		7,988		2,987		529		1,125		12,629
Amortization		109		4,874		1,212		1		6,196
Impairment of indefinite-lived long-term assets other than goodwill						34				34
Impairment of goodwill						45				45
Change in estimated fair value of contingent earn-out consideration				325		409				734
(Gain) loss on the sale or disposal of assets		231		25		(5)				251
Operating income (loss)	$	46,560	$	1,890	$	(1,616)	$	(18,218)	$	28,616

			Digital				Unallocated
	Broadcast		Media		Publishing		Corporate		Consolidated
	(Dollars in thousands)
As of December 31, 2016
Inventories, net	$		$	300	$	370	$		$	670
Property and equipment, net		86,976		6,634		1,779		7,401		102,790
Broadcast licenses		388,517								388,517
Goodwill		3,581		20,136		1,888		8		25,613
Other indefinite-lived intangible assets						332				332
Amortizable intangible assets, net		407		9,927		4,069		5		14,408
As of December 31, 2015
Inventories, net	$		$	505	$	388	$		$	893
Property and equipment, net		88,894		6,927		1,742		7,920		105,483
Broadcast licenses		393,031								393,031
Goodwill		3,581		19,930		1,044		8		24,563
Other indefinite-lived intangible assets						833				833
Amortizable intangible assets, net		492		9,599		1,385		5		11,481

Schedule Of Financial Information By Operating Segment With Comparison Of Results Under Prior Composition Of Operating Segments As Compared To New Composition

The table below presents financial information for each operating segment as of December 31, 2015 and 2014 with a comparison of the results under the prior composition of our operating segments as compared to the new composition:

	Year ended December 31,
	2014				2015
	Original		Updated		Original		Updated
	(Dollars in thousands)
Revenues by Segment:
Net Broadcast Revenue	$	192,923	$	194,094	$	196,090	$	197,184
Net Digital Media Revenue		46,862		45,691		45,855		44,761
Net Publishing Revenue		26,751		26,751		23,842		23,842
Total Net Revenue	$	266,536	$	266,536	$	265,787	$	265,787
Operating expenses by segment:
Broadcast Operating Expenses	$	138,564	$	139,206	$	140,230	$	140,819
Digital Media Operating Expenses		36,232		35,590		35,969		35,380
Publishing Operating Expenses		26,143		26,143		24,774		24,774
Unallocated Corporate Expenses		17,092		17,092		15,146		15,146
	$	218,031	$	218,031	$	216,119	$	216,119
Net operating income (loss) before depreciation, amortization, impairments and (gain) loss on the sale or disposal of assets	$	48,505	$	48,505	$	49,668	$	49,668