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

Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
OPERATING ACTIVITIES
Income (loss) from continuing operations	$ 5,475,000	$ (2,699,000)	$ 4,523,000
Adjustments to reconcile income (loss) from continuing operations to net cash provided by continuing operating activities:
Non-cash stock-based compensation	1,576,000us-gaap_ShareBasedCompensation	1,849,000us-gaap_ShareBasedCompensation	1,368,000us-gaap_ShareBasedCompensation
Tax benefit related to stock options exercised	120,000	339,000	228,000
Depreciation and amortization	18,825,000	15,262,000	14,647,000
Amortization of bond issue costs and bank loan fees	643,000us-gaap_AmortizationOfFinancingCosts	853,000us-gaap_AmortizationOfFinancingCosts	1,291,000us-gaap_AmortizationOfFinancingCosts
Amortization and accretion of financing items	187,000	194,000	179,000
Accretion of acquisition-related deferred payments and contingent consideration	576,000us-gaap_AccretionExpense
Provision for bad debts	3,026,000us-gaap_ProvisionForDoubtfulAccounts	3,456,000us-gaap_ProvisionForDoubtfulAccounts	2,554,000us-gaap_ProvisionForDoubtfulAccounts
Deferred income taxes	4,375,000us-gaap_DeferredIncomeTaxExpenseBenefit	(4,764,000)us-gaap_DeferredIncomeTaxExpenseBenefit	(329,000)us-gaap_DeferredIncomeTaxExpenseBenefit
Impairment of indefinite-lived long-term assets other than goodwill	34,000	1,006,000	88,000
Impairment of goodwill	45,000us-gaap_GoodwillImpairmentLoss	438,000us-gaap_GoodwillImpairmentLoss
Impairment of long-lived assets			6,808,000
Change in the fair value of interest rate swaps	2,702,000us-gaap_UnrealizedGainLossOnDerivatives	(3,177,000)us-gaap_UnrealizedGainLossOnDerivatives
Change in the estimated fair value of contingent earn-out consideration	734,000
(Gain) loss on the sale or disposal of assets	251,000us-gaap_GainLossOnDispositionOfAssets	(264,000)us-gaap_GainLossOnDispositionOfAssets	49,000us-gaap_GainLossOnDispositionOfAssets
Loss on early retirement of debt	391,000	27,795,000	1,088,000
Changes in operating assets and liabilities:
Accounts receivable	4,756,000	(3,049,000)	(2,556,000)
Prepaid expenses and other current assets	210,000	(50,000)	118,000
Accounts payable and accrued expenses	4,041,000	(4,733,000)	3,291,000
Deferred revenue	(4,929,000)	(3,688,000)	(2,240,000)
Other liabilities	(1,125,000)
Income taxes payable	12,000	(33,000)	(30,000)
Net cash provided by continuing operating activities	41,925,000	28,735,000	31,077,000
INVESTING ACTIVITIES
Capital expenditures	(10,074,000)	(10,639,000)	(8,549,000)
Deposits (release) of cash held in escrow pursuant to acquisition and sale activity	(65,000)	81,000	(725,000)
Purchases of broadcast assets and radio stations	(6,195,000)	(5,500,000)	(3,330,000)
Proceeds from the sale of assets	1,370,000	477,000	907,000
Restricted cash			110,000
Other	(283,000)	(179,000)	(114,000)
Net cash used in investing activities of continuing operations	(21,734,000)	(17,737,000)	(19,066,000)
FINANCING ACTIVITIES
Payments to redeem Terminated 9 5/8% Notes		(213,500,000)us-gaap_RepaymentsOfSeniorDebt	(21,500,000)us-gaap_RepaymentsOfSeniorDebt
Payments of bond premium in connection with early redemptions and repurchases of the Terminated 95/8% Notes		(22,677,000)	(645,000)
Payments of costs related to bank credit facility	(13,000)us-gaap_PaymentsOfLoanCosts	(4,394,000)us-gaap_PaymentsOfLoanCosts	(149,000)us-gaap_PaymentsOfLoanCosts
Proceeds from borrowings under terminated credit facilities and subordinated debt		46,747,000us-gaap_ProceedsFromLinesOfCredit	154,169,000us-gaap_ProceedsFromLinesOfCredit
Payments under terminated credit facilities and subordinated debt		(87,220,000)us-gaap_RepaymentsOfLinesOfCredit	(144,669,000)us-gaap_RepaymentsOfLinesOfCredit
Proceeds from Terminated Subordinated Debt due to Related Parties			27,000,000us-gaap_ProceedsFromRelatedPartyDebt
Payments to Terminated Subordinated Debt due to Related Parties		(15,000,000)us-gaap_RepaymentsOfRelatedPartyDebt	(21,000,000)us-gaap_RepaymentsOfRelatedPartyDebt
Payments of contingent earn-out consideration	(300,000)
Payment of seller financed note		(2,000,000)us-gaap_RepaymentsOfNotesPayable
Proceeds from exercise of stock options	1,221,000	1,422,000	409,000
Payment of cash distribution on common stock	(6,183,000)us-gaap_PaymentsOfDividendsCommonStock	(5,158,000)us-gaap_PaymentsOfDividendsCommonStock	(3,412,000)us-gaap_PaymentsOfDividendsCommonStock
Payments on capital lease obligations	(130,000)	(122,000)	(125,000)
Book overdraft	(1,352,000)	876,000	(1,775,000)
Net cash used in financing activities	(20,223,000)	(11,276,000)	(11,697,000)
CASH FLOWS FROM DISCONTINUED OPERATIONS
Operating cash flows		(37,000)	(1,000)
Total cash outflows from discontinued operations		(37,000)	(1,000)
Net increase (decrease) in cash and cash equivalents	(32,000)	(315,000)	313,000
Cash and cash equivalents at beginning of period	65,000	380,000	67,000
Cash and cash equivalents at end of period	33,000	65,000	380,000
Cash paid during the period for:
Cash paid for interest net of capitalized interest (including $322, $296 and $0 for the years ended December 31, 2012, 2013 and 2014, respectively, paid to related parties)	14,518,000us-gaap_InterestPaid	16,747,000us-gaap_InterestPaid	23,448,000us-gaap_InterestPaid
Cash paid for income taxes	257,000us-gaap_IncomeTaxesPaidNet	242,000us-gaap_IncomeTaxesPaidNet	220,000us-gaap_IncomeTaxesPaidNet
Other supplemental disclosures of cash flow information:
Trade revenue	6,227,000salm_SupplementalNoncashTradeRevenue	5,917,000salm_SupplementalNoncashTradeRevenue	5,270,000salm_SupplementalNoncashTradeRevenue
Trade expense	6,052,000salm_SupplementalNoncashTradeExpense	4,897,000salm_SupplementalNoncashTradeExpense	5,309,000salm_SupplementalNoncashTradeExpense
Non-cash investing and financing activities:
Present value of advertising credit payable		2,427,000
Seller financed note due directly to seller of station assets		2,000,000us-gaap_NotesIssued1
Estimated present value of contingent earn-out consideration	2,047,000	616,000
Deferred payments due 2014 under asset purchase agreement	600,000	300,000
Present value of deferred cash payments (due 2015)	893,000
Present value of deferred cash payments (due 2016)	2,289,000
Assets acquired under capital leases	64,000	118,000	27,000
Internet [Member]
INVESTING ACTIVITIES
Purchases of businesses and assets	(3,713,000)	(1,977,000)	(7,365,000)
Publishing [Member]
INVESTING ACTIVITIES
Purchases of businesses and assets	(2,774,000)
Term Loan B [Member]
Adjustments to reconcile income (loss) from continuing operations to net cash provided by continuing operating activities:
Amortization of bond issue costs and bank loan fees	300,000	300,000
Loss on early retirement of debt	(100,000)
FINANCING ACTIVITIES
Proceeds from borrowings under Term Loan B and Revolver		298,500,000
Payments under Term Loan B and Revolver	(15,250,000)	(8,750,000)
Revolver [Member]
FINANCING ACTIVITIES
Proceeds from borrowings under Term Loan B and Revolver	56,510,000	30,961,000
Payments under Term Loan B and Revolver	$ (54,726,000)	$ (30,961,000)