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, 2015

	Broadcast			Digital Media			Publishing			Unallocated Corporate			Consolidated
	(Dollars in thousands)
Three Months Ended September 30, 2015
Total net revenue	$	49,186		$	11,393		$	6,912		$			$	67,491
Operating expenses		35,407			8,761			6,966			3,697			54,831
Net operating income (loss) before depreciation, amortization, change in the estimated fair value of contingent earn-out consideration and (gain) loss on the sale or disposal of assets	$	13,779		$	2,632		$	(54	)	$	(3,697	)	$	12,660
Depreciation		1,929			838			153			216			3,136
Amortization		23			1,171			136						1,330
Change in the estimated fair value of contingent earn-out consideration					(105	)		(498	)					(603	)
(Gain) loss on the sale or disposal of assets		35			11			(57	)		8			(3	)
Net operating income (loss)	$	11,792		$	717		$	212		$	(3,921	)	$	8,800

Three Months Ended September 30, 2014
Net revenue	$	48,246		$	11,503		$	9,859		$			$	69,608
Operating expenses		34,402			9,018			8,252			3,880			55,552
Net operating income (loss) before depreciation, amortization, change in the estimated fair value of contingent earn-out consideration and loss on the sale or disposal of assets	$	13,844		$	2,485		$	1,607		$	(3,880	)	$	14,056
Depreciation		1,971			764			130			276			3,141
Amortization		23			1,202			304			1			1,530
Change in the estimated fair value of contingent earn-out consideration					58			487						545
Loss on the sale or disposal of assets		(7	)											(7	)
Net operating income (loss)	$	11,857		$	461		$	686		$	(4,157	)	$	8,847

	Broadcast		Digital Media			Publishing			Unallocated Corporate			Consolidated
	(Dollars in thousands)
Nine Months Ended September 30, 2015
Total net revenue	$	144,785	$	33,683		$	18,172		$			$	196,640
Operating expenses		104,511		26,528			17,932			11,206			160,177
Net operating income (loss) before depreciation, amortization, change in the estimated fair value of contingent earn-out consideration and (gain) loss on the sale or disposal of assets	$	40,274	$	7,155		$	240		$	(11,206	)	$	36,463
Depreciation		5,769		2,396			488			715			9,368
Amortization		69		3,497			407			1			3,974
Change in the estimated fair value of contingent earn-out consideration				(316	)		(476	)					(792	)
(Gain) loss on the sale or disposal of assets		194		11			(58	)		9			156
Net operating income (loss)	$	34,242	$	1,567		$	(121	)	$	(11,931	)	$	23,757

Nine Months Ended September 30, 2014
Net revenue	$	144,144	$	35,134		$	21,311		$			$	200,589
Operating expenses		103,563		27,138			20,067			12,920			163,688
Net operating income (loss) before depreciation, amortization, change in the estimated fair value of contingent earn-out consideration and loss on the sale or disposal of assets	$	40,581	$	7,996		$	1,244		$	(12,920	)	$	36,901
Depreciation		5,954		2,278			364			841			9,437
Amortization		75		3,682			909			1			4,667
Change in the estimated fair value of contingent earn-out consideration				275			639						914
Loss on the sale or disposal of assets		214											214
Net operating income (loss)	$	34,338	$	1,761		$	(668	)	$	(13,762	)	$	21,669

	Broadcast		Digital Media		Publishing		Unallocated Corporate		Consolidated
	(Dollars in thousands)
As of September 30, 2015
Inventories, net	$		$	551	$	522	$		$	1,073
Property and equipment, net		86,522		7,190		1,778		8,155		103,645
Broadcast licenses		390,051								390,051
Goodwill		3,986		19,930		1,044		8		24,968
Other indefinite-lived intangible assets						833				833
Amortizable intangible assets, net		514		10,662		1,521		1		12,698

As of December 31, 2014
Inventories, net	$		$	222	$	350	$		$	572
Property and equipment, net		81,948		7,111		1,941		8,227		99,227
Broadcast licenses		385,726								385,726
Goodwill		3,955		19,677		1,044		8		24,684
Other indefinite-lived intangible assets						833				833
Amortizable intangible assets, net		583		9,884		1,926		2		12,395

Schedule of financial information by operating segment with a comparison of the results under the prior composition of operating segments as compared to new composition

	Three Months Ended September 30, 2014				Nine Months Ended September 30, 2014
	As Reported Original (1)		As Updated New		As Reported Original (1)		As Updated New
	(Dollars in thousands)
Net Revenue by Segment:
Net broadcast revenue	$	46,962	$	48,246	$	140,393	$	144,144
Net digital media revenue		14,516		11,503		41,827		35,134
Net publishing revenue		8,130		9,859		18,369		21,311
Total net revenue	$	69,608	$	69,608	$	200,589	$	200,589
Operating expenses by segment:
Broadcast operating expenses	$	32,596	$	34,402	$	97,695	$	103,563
Digital media operating expenses		10,936		9,018		30,827		27,138
Publishing operating expenses		6,766		8,252		17,624		20,067
Unallocated corporate expenses		5,254		3,880		17,542		12,920
	$	55,552	$	55,552	$	163,688	$	163,688
Net operating income before depreciation, amortization, change in the estimated fair value of contingent earn-out consideration and (gain) loss on the sale or disposal of assets	$	8,847	$	8,847	$	21,669	$	21,669

(1)

Includes the reclassification of $16,000 of revenue share commissions to digital media operating expenses from digital media revenue to conform to current presentation.