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

Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2023

The following table presents our revenues disaggregated by revenue source for each of our operating segments:


	Six Months Ended June 30, 2023
	Broadcast		Digital Media		Publishing			Consolidated

	(Dollars in thousands)
By Source of Revenue:
Block Programming – National	$	26,979	$	—	$	—		$	26,979
Block Programming – Local		11,917		—		—			11,917

Broadcast Programming Revenue		38,896		—		—			38,896

Spot Advertising – National		5,750		—		—			5,750
Spot Advertising – Local		19,554		—		—			19,554
Network Advertising		10,208		—		—			10,208

Broadcast Advertising Revenue		35,512		—		—			35,512

Infomercials		337		—		—			337
Other Revenue		4,149		—		—			4,149

Other Broadcast Revenue		4,486		—		—			4,486

Digital Advertising		15,244		7,967		—			23,211
Digital Streaming		3,112		1,693		—			4,805
Digital Downloads		89		3,757		—			3,846
Digital Subscriptions		418		7,873		—			8,291
Other Digital Revenue		263		80		—			343

Digital Revenue		19,126		21,370		—			40,496

Book Sales		—		—		5,541			5,541
Estimated Sales Returns & Allowances		—		—		(10	)		(10	)

Net Book Sales		—		—		5,531			5,531

E-Book Sales		—		—		496			496
Self-Publishing Fees		—		—		3,436			3,436
Other Publishing Revenue		—		—		410			410

Publishing Revenue		—		—		9,873			9,873

	$	98,020	$	21,370	$	9,873		$	129,263

Timing of Revenue Recognition
Point in Time	$	97,099	$	21,370	$	9,873		$	128,342
Rental Income (1)		921		—		—			921

	$	98,020	$	21,370	$	9,873		$	129,263


	Six Months Ended June 30, 2022
	Broadcast		Digital Media		Publishing			Consolidated

	(Dollars in thousands)
By Source of Revenue:
Block Programming – National	$	26,399	$	—	$	—		$	26,399
Block Programming – Local		12,049		—		—			12,049

Broadcast Programming Revenue		38,448		—		—			38,448

Spot Advertising – National		7,700		—		—			7,700
Spot Advertising – Local		21,552		—		—			21,552
Network Advertising		10,240		—		—			10,240

Broadcast Advertising Revenue		39,492		—		—			39,492

Infomercials		373		—		—			373
Other Revenue		4,484		—		—			4,484

Other Broadcast Revenue		4,857		—		—			4,857

Digital Advertising		14,112		9,088		—			23,200
Digital Streaming		2,492		1,798		—			4,290
Digital Downloads		387		3,797		—			4,184
Digital Subscriptions		503		6,343		—			6,846
Other Digital Revenue		593		78		—			671

Digital Revenue		18,087		21,104		—			39,191

Book Sales		—		—		6,204			6,204
Estimated Sales Returns & Allowances		—		—		(1,444	)		(1,444	)

Net Book Sales		—		—		4,760			4,760


	Six Months Ended June 30, 2022
	Broadcast		Digital Media		Publishing		Consolidated

	(Dollars in thousands)
E-Book Sales		—		—		625		625
Self-Publishing Fees		—		—		3,379		3,379
Other Publishing Revenue		—		—		539		539

Publishing Revenue		—		—		9,303		9,303

	$	100,884	$	21,104	$	9,303	$	131,291

Timing of Revenue Recognition
Point in Time	$	99,744	$	21,104	$	9,303	$	130,151
Rental Income (1)		1,140		—		—		1,140

	$	100,884	$	21,104	$	9,303	$	131,291

(1)	Rental income is not applicable to FASB ASC Topic 606, but shown for the purpose of identifying each revenue source presented in total revenue on our Condensed Consolidated Financial Statements within this report on Form 10-Q.

Significant changes in our contract liabilities balances during the period are as follows:


	Short Term			Long-Term

	(Dollars in thousands)
Balance, beginning of period January 1, 2023	$	11,901		$	1,886
Revenue recognized during the period that was included in the beginning balance of contract liabilities		(6,978	)		—
Additional amounts recognized during the period		14,942			3,329
Revenue recognized during the period that was recorded during the period		(7,961	)		—
Transfers		1,379			(1,379	)

Balance, end of period June 30, 2023	$	13,283		$	3,836

Amount refundable at beginning of period	$	11,901		$	1,886
Amount refundable at end of period	$	13,283		$	3,836

We expect to satisfy these performance obligations as follows:

Trade and barter revenues and expenses were as follows:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2023		2022		2023

	(Dollars in thousands)
Net broadcast barter revenue	$	679	$	816	$	1,525	$	1,552
Net broadcast barter expense	$	873	$	788	$	1,632	$	1,580