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

Quarterly report pursuant to Section 13 or 15(d)

STOCK INCENTIVE PLAN (Tables)

STOCK INCENTIVE PLAN (Tables)

3 Months Ended

Mar. 31, 2013

Stock-Based Compensation Expense Recognized

The following table reflects the components of stock-based compensation expense recognized in the Condensed Consolidated Statements of Operations for the three months ended March 31, 2012 and 2013:


	Three Months Ended March 31,
	2012			2013
	(Dollars in thousands)
Stock option compensation expense included in Corporate expenses	$	207		$	78
Restricted stock shares compensation expense included in Corporate expenses		—			481
Stock option compensation expense included in Broadcast operating expenses		87			169
Stock option compensation expense included in Internet operating expenses		28			74
Stock option compensation expense included in Publishing operating expenses		5			18

Total stock-based compensation expense, pre-tax	$	327		$	820
Tax provision for stock-based compensation expense		(143	)		(328	)

Total stock-based compensation expense, net of tax	$	184		$	492

Weighted-Average Assumptions used to Estimate Fair Value of Stock Options and Restricted Stock Awards using Black-Scholes Valuation Model

The weighted-average assumptions used to estimate the fair value of the stock options and restricted stock awards using the Black-Scholes valuation model were as follows for the three months ended March 31, 2012 and 2013:


	Three Months Ended March 31,
	2012			2013
Expected volatility		102.4	%		100.78	%
Expected dividends		5.07	%		2.05	%
Expected term (in years)		8.2			6.6
Risk-free interest rate		1.66	%		1.06	%

Stock Option

Stock option information with respect to the company’s stock-based equity plans during the three months ended March 31, 2013 is as follows (Dollars in thousands, except weighted average exercise price and weighted average grant date fair value):


Options	Shares		Weighted Average Exercise Price		Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at January 1, 2013		1,927,099	$	4.37	$	3.45		5.4 years	$	3,899
Granted		735,750	$	6.93	$	4.90
Exercised		47,041	$	2.73	$	8.17
Forfeited or expired		35,775	$	12.39	$	7.62

Outstanding at March 31, 2013		2,580,033	$	5.02	$	3.72		5.9 years		8,595

Exercisable at March 31, 2013		781,592	$	6.11	$	4.74		3.3 years		2,503

Expected to Vest		1,707,621	$	4.54	$	3.28		7.0 years		5,785

Information Regarding Restricted Stock

Information regarding the Company’s restricted stock during the three months ended March 31, 2013 is as follows:


Restricted Stock Units	Shares			Weighted Average Grant Date Fair Value
Outstanding at January 1, 2013		—		$	—
Granted		79,810			6.02
Vested		(79,810	)		6.02
Forfeited		—			—

Non-Vested at March 31, 2013		—		$	—

- Definition

Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed.

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