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

SEGMENT DATA (Tables)

6 Months Ended

Jun. 30, 2018

The table below presents financial information for each operating segment as of June 30, 2018 and 2017:

	Broadcast			Digital Media			Publishing			Unallocated Corporate Expenses			Consolidated
	(Dollars in thousands)
Three Months Ended June 30, 2018
Net revenue	$	50,563		$	10,260		$	5,449		$	—		$	66,272
Operating expenses		37,243			8,397			5,522			4,030			55,192
Net operating income (loss) before depreciation, amortization and net loss on the disposition of assets	$	13,320		$	1,863		$	(73	)	$	(4,030	)	$	11,080
Depreciation		1,911			767			129			228			3,035
Amortization		10			1,223			242			1			1,476
Change in the estimated fair value of contingent earn-out consideration		—			72			—			—			72
Net loss on the disposition of assets		5,154			—			—			—			5,154
Net operating income (loss)	$	6,245		$	(199	)	$	(444	)	$	(4,259	)	$	1,343

Three Months Ended June 30, 2017
Net revenue	$	49,251		$	10,866		$	5,995		$	—		$	66,112
Operating expenses		35,931			8,370			5,668			3,825			53,794
Net operating income (loss) before depreciation, amortization, change in the estimated fair value of contingent earn-out consideration, impairment and net gain on the disposition of assets	$	13,320		$	2,496		$	327		$	(3,825	)	$	12,318
Depreciation		1,929			820			162			198			3,109
Amortization		18			816			308			1			1,143
Change in the estimated fair value of contingent earn-out consideration		—			(43	)		—			—			(43	)
Net gain on the disposition of assets		(494	)		—			(16	)		—			(510	)
Net operating income (loss)	$	11,867		$	903		$	(127	)	$	(4,024	)	$	8,619

	Broadcast			Digital Media			Publishing			Unallocated Corporate Expenses			Consolidated
	(Dollars in thousands)
Six Months Ended June 30, 2018
Net revenue	$	98,613		$	20,654		$	10,800		$	—		$	130,067
Operating expenses		72,993			16,771			11,109			7,951			108,824
Net operating income (loss) before depreciation, amortization and net loss on the disposition of assets	$	25,620		$	3,883		$	(309	)	$	(7,951	)	$	21,243
Depreciation		3,769			1,569			260			446			6,044
Amortization		20			2,448			485			1			2,954
Change in the estimated fair value of contingent earn-out consideration		—			72			—			—			72
Net loss on the disposition of assets		5,159			—			—			—			5,159
Net operating income (loss)	$	16,672		$	(206	)	$	(1,054	)	$	(8,398	)	$	7,014

Six Months Ended June 30, 2017
Net revenue	$	97,055		$	21,552		$	12,485		$	—		$	131,092
Operating expenses		71,767			17,072			12,019			8,950			109,808
Net operating income (loss) before depreciation, amortization, change in the estimated fair value of contingent earn-out consideration, impairment and net gain on the disposition of assets	$	25,288		$	4,480		$	466		$	(8,950	)	$	21,284
Depreciation		3,748			1,597			356			388			6,089
Amortization		35			1,634			615			1			2,285
Change in the estimated fair value of contingent earn-out consideration		—			(42	)		—			—			(42	)
Impairment of indefinite-lived long-term assets other than goodwill		—			—			19			—			19
Net gain on the disposition of assets		(496	)		—			(9	)		—			(505	)
Net operating income (loss)	$	22,001		$	1,291		$	(515	)	$	(9,339	)	$	13,438

	Broadcast		Digital Media		Publishing		Unallocated Corporate		Consolidated
	(Dollars in thousands)
As of June 30, 2018
Inventories, net	$	—	$	473	$	480	$	—	$	953
Property and equipment, net		81,834		5,955		1,075		7,559		96,423
Broadcast licenses		373,962		—		—		—		373,962
Goodwill		2,960		20,947		1,888		8		25,803
Other indefinite-lived intangible assets		—		—		313		—		313
Amortizable intangible assets, net		320		7,393		2,462		5		10,180

As of December 31, 2017
Inventories, net	$	—	$	313	$	417	$	—	$	730
Property and equipment, net		83,901		6,173		1,281		8,125		99,480
Broadcast licenses		380,914		—		—		—		380,914
Goodwill		3,581		20,947		1,888		8		26,424
Other indefinite-lived intangible assets		—		—		313		—		313
Amortizable intangible assets, net		351		9,801		2,947		5		13,104