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, 2020

The table below presents financial information for each operating segment as of September 30, 2020 and 2019 based on the composition of our operating segments:


	Broadcast			Digital Media			Publishing			Unallocated Corporate Expenses			Consolidated
	(Dollars in thousands)
Three Months Ended September 30, 2020
Net revenue	$	45,391		$	9,808		$	5,442		$	—		$	60,641
Operating expenses		34,283			7,144			5,814			3,849			51,090

Net operating income (loss) before depreciation, amortization, change in the estimated fair value of contingent earn-out consideration and net (gain) loss on the disposition of assets	$	11,108		$	2,664		$	(372	)	$	(3,849	)	$	9,551

Depreciation		1,626			746			70			235			2,677
Amortization		4			537			210			—			751
Change in the estimated fair value of contingent earn-out consideration		—			(10	)		—			—			(10	)
Net (gain) loss on the disposition of assets		1,380			—			1			—			1,381

Net operating income (loss)	$	8,098		$	1,391		$	(653	)	$	(4,084	)	$	4,752

Three Months Ended September 30, 2019
Net revenue	$	47,679		$	9,149		$	7,288		$	—		$	64,116
Operating expenses		37,310			7,282			6,517			4,183			55,292

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	$	10,369		$	1,867		$	771		$	(4,183	)	$	8,824

Depreciation		1,720			764			80			180			2,744
Amortization		8			929			210			—			1,147
Change in the estimated fair value of contingent earn-out consideration		—			(40	)		—			—			(40	)
Impairment of indefinite-lived long-term assets other than goodwill		1,915			—			—			—			1,915
Net (gain) loss on the disposition of assets		17,539			6			—			—			17,545

Net operating income (loss)	$	(10,813	)	$	208		$	481		$	(4,363	)	$	(14,487	)


	Broadcast		Digital Media			Publishing			Unallocated Corporate Expenses			Consolidated
	(Dollars in thousands)
Nine Months Ended September 30, 2020
Net revenue	$	130,041	$	28,355		$	13,366		$	—		$	171,762
Operating expenses		104,704		23,123			16,443			11,909			156,179

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	$	25,337	$	5,232		$	(3,077	)	$	(11,909	)	$	15,583

Depreciation		4,912		2,284			212			700			8,108
Amortization		18		1,928			631			1			2,578
Change in the estimated fair value of contingent earn-out consideration		—		(12	)		—			—			(12	)
Impairment of indefinite-lived long-term assets other than goodwill		16,994		—			260			—			17,254
Impairment of goodwill		184		10			105			8			307
Net (gain) loss on the disposition of assets		1,489		—			1			4			1,494

Net operating income (loss)	$	1,740	$	1,022		$	(4,286	)	$	(12,622	)	$	(14,146	)

Nine Months Ended September 30, 2019
Net revenue	$	142,854	$	29,349		$	17,062		$	—		$	189,265
Operating expenses		111,466		22,988			17,112			12,386			163,952

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	$	31,388	$	6,361		$	(50	)	$	(12,386	)	$	25,313

Depreciation		5,399		2,302			289			539			8,529
Amortization		26		2,907			633			1			3,567


Change in the estimated fair value of contingent earn-out consideration		—		(40	)		—			—			(40	)
Impairment of indefinite-lived long-term assets other than goodwill		1,915		—			—			—			1,915
Net (gain) loss on the disposition of assets		20,951		260			1			—			21,212

Net operating income (loss)	$	3,097	$	932		$	(973	)	$	(12,926	)	$	(9,870	)


	Broadcast		Digital Media			Publishing			Unallocated Corporate			Consolidated
	(Dollars in thousands)
As of September 30, 2020
Inventories, net	$	—	$	—		$	618		$	—		$	618
Property and equipment, net		65,438		6,490			763			8,032			80,723
Broadcast licenses		319,773		—			—			—			319,773
Goodwill		2,746		19,565			1,446			—			23,757
Other indefinite-lived intangible assets		—		—			—			—			—
Amortizable intangible assets, net		250		3,922			547			—			4,719
As of December 31, 2019
Inventories, net	$	—	$	—		$	717		$	—		$	717
Property and equipment, net		72,816		6,127			801			7,929			87,673
Broadcast licenses		337,858		—			—			—			337,858
Goodwill		2,930		19,509			1,551			8			23,998
Other indefinite-lived intangible assets		—		—			260			—			260
Amortizable intangible assets, net		268		5,653			1,178			1			7,100