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, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of 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, 2015 and 2016:

	Three Months Ended March 31,
	2015		2016
	(Dollars in thousands)
Stock option compensation expense included in corporate expenses	$	228	$	121
Restricted stock shares compensation expense included in corporate expenses		1		24
Stock option compensation expense included in broadcast operating expenses		52		28
Stock option compensation expense included in digital media operating expenses		36		25
Stock option compensation expense included in publishing operating expenses		14		1
Total stock-based compensation expense, pre-tax	$	331	$	199
Tax provision for stock-based compensation expense		(132)		(80)
Total stock-based compensation expense, net of tax	$	199	$	119

Schedule of Weighted-Average Assumptions Used to Estimate Fair Value of Stock Options and Restricted Stock Awards using Black-Scholes Option 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, 2015 and 2016:

	Three Months Ended March 31,
	2015			2016
Expected volatility		52.37	%		47.03	%
Expected dividends		4.28	%		5.36	%
Expected term (in years)		3.0			7.5
Risk-free interest rate		0.85	%		1.66	%

Schedule of Stock Option Activity

Stock option information with respect to the company’s stock-based equity plans during the three months ended March 31, 2016 is as follows:

							Weighted Average
			Weighted Average		Weighted Average		Remaining Contractual		Aggregate
Options	Shares		Exercise Price		Grant Date Fair Value		Term		Intrinsic Value
	(Dollars in thousands, except weighted average exercise price and weighted average grant date fair value)
Outstanding at January 1, 2016		1,581,123	$	4.87	$	3.39		4.3 years	$	1,738
Granted		548,500		4.85		1.33
Exercised		(11,625)		2.63		1.67
Forfeited or expired		(56,002)		8.07		6.10
Outstanding at March 31, 2016		2,061,996	$	4.80	$	2.78		5.0 years	$	2,830
Exercisable at March 31, 2016		1,235,871	$	4.76	$	3.34		3.7 years	$	1,896
Expected to Vest		784,415	$	4.85	$	1.94		6.9 years	$	887

Schedule of Information Regarding Restricted Stock Activity

Information regarding the company’s restricted stock awards during the three months ended March 31, 2016 is as follows:

			Weighted Average		Weighted Average Remaining		Aggregate
Restricted Stock Awards	Shares		Grant Date Fair Value		Contractual Term		Intrinsic Value
	(Dollars in thousands, except weighted average exercise price and weighted average grant date fair value)
Outstanding at January 1, 2016		8,000	$	5.83		0.2 years	$	40
Granted
Lapsed		(8,000)		5.83				52
Forfeited
Unvested outstanding at March 31, 2016			$				$