Evan Masyr - EVP & CFO David Santrella - CEO David Evans - COO Good afternoon, ladies and gentlemen. Welcome to the Salem Media Group Q4 2022 Earnings Conference Call. [Operator Instructions]. In the room with me today are David Santrella, Chief Executive Officer; and David Evans, Chief Operating Officer. We will begin in just a moment with our prepared remarks. Once we are done, the conference call operator will come back on the line to instruct you on how to submit questions. One thing that you'll hear th ...

Salem Media Group, Inc. (OTCQX:SALM) Q3 2022 Earnings Conference Call November 3, 2022 5:00 PM ET Company Participants Evan Masyr - CFO David Santrella - CEO David Evans - COO Conference Call Participants Michael Kupinski - NOBLE Capital Markets Derrick Wenger - Concise Capital Edward Reilly - EF Hutton Operator Ladies and gentlemen, good afternoon. My name is Abby, and I will be your conference operator today. I would like to welcome everyone to the Salem Media Group, Inc. Third Quarter 202 Earnings Call. ...

GROUP INVESTOR INVESTOR PRESENTATION PRESENTATION NASDAQ: SALM | October 2022 Safe Harbor Certain statements in this presentation constitute "forward-looking statements" within the meaning of the private securities litigation reform act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed ...

Financial Data and Key Metrics Changes - Total revenue for Q2 2022 increased by 7.7% to $68.7 million compared to Q2 2021 [27] - Operating expenses increased by 10.7% to $60.9 million, while adjusted EBITDA rose by 33.6% to $11.7 million, including $3.9 million from the film "2000 Mules" [27][7] - Compared to Q2 2019, total revenue increased by 6.2% and adjusted EBITDA increased by 15.1% [28] Business Line Data and Key Metrics Changes - Broadcast division revenue increased by 12.1% to $52.5 million, with digital revenue within this division growing by 27.9% to $9.9 million [28][11] - National Digital Media division revenue increased by 4.5% to $10.8 million, while publishing revenue decreased by 18.5% to $5.4 million [32][15] - Political revenue for the quarter was $1.5 million, significantly up from $400,000 in Q2 2021 [13][54] Market Data and Key Metrics Changes - Local advertising revenue increased by 6.9%, while national advertising revenue rose by 17.4% [12] - The church products business saw an 18.2% growth due to acquisitions made last year [14] Company Strategy and Development Direction - The company is focusing on digital revenue growth, which now represents over 30% of total revenue, and expects it to be the fastest-growing segment [10] - Salem Media Group is exploring further investment opportunities in films that align with its audience, following the success of "2000 Mules" [20] Management's Comments on Operating Environment and Future Outlook - Management noted that the political environment is particularly intense, which is expected to drive revenue growth in Q3 [40] - The company anticipates total revenue growth of 6% to 8% for Q3 2022 compared to Q3 2021 [33] Other Important Information - The leverage ratio improved to 3.97%, the lowest in over 20 years, allowing the board to consider resuming dividend payments [22][24] - The company repurchased $13 million of bonds during the quarter, contributing to a stronger balance sheet [22] Q&A Session Summary Question: Can you provide insights on the components of expected Q3 revenue growth? - Management highlighted political advertising, strong book releases, and digital revenue as key drivers for Q3 growth [37][39] Question: What is the performance of the network business and national advertising? - The network business is performing well, driven by integrated media deals, and political content is a significant contributor to national advertising growth [39][54] Question: What are the factors behind the expense growth for Q3? - Increased expenses are attributed to the reinstatement of the 401(k) match, investments in the Salem News Channel, and higher travel and marketing costs [41][43] Question: What is the total benefit received from "2000 Mules"? - The total benefit from "2000 Mules" is approximately $4.8 million, in addition to the return of the initial investment of $4.5 million [58]

[PART I – FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Item 1. Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) The unaudited condensed consolidated financial statements for H1 2022 show net income surged to **$10.9 million**, driven by revenue growth, asset sales, and equity investment earnings, with stable assets and reduced liabilities [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets slightly decreased to **$515.3 million** as of June 30, 2022, while total liabilities reduced to **$325.9 million**, increasing stockholders' equity to **$189.3 million** Balance Sheet Highlights (in thousands) | Balance Sheet Highlights (in thousands) | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total Current Assets** | $47,667 | $41,514 | | **Broadcast Licenses** | $313,500 | $320,008 | | **Total Assets** | **$515,269** | **$516,112** | | **Total Current Liabilities** | $56,161 | $51,455 | | **Long-term Debt, less current portion** | $155,595 | $170,581 | | **Total Liabilities** | **$325,934** | **$337,901** | | **Total Stockholders' Equity** | **$189,335** | **$178,211** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net income for Q2 2022 surged to **$9.1 million** on **$68.7 million** revenue, driven by asset gains and equity investment earnings, with H1 net income reaching **$10.9 million** Income Statement Highlights (in thousands) | Income Statement Highlights (in thousands) | Q2 2022 | Q2 2021 | H1 2022 | H1 2021 | | :--- | :--- | :--- | :--- | :--- | | **Total Net Revenue** | $68,682 | $63,782 | $131,291 | $123,135 | | **Operating Income** | $7,328 | $5,641 | $12,302 | $9,997 | | **Net (gain) loss on disposition of assets** | $(6,893) | $(263) | $(8,628) | $55 | | **Earnings from equity method investment** | $3,913 | $— | $3,913 | $— | | **Net Income** | **$9,117** | **$2,257** | **$10,856** | **$2,580** | | **Diluted EPS** | **$0.33** | **$0.08** | **$0.39** | **$0.10** | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) H1 2022 operating cash flow decreased to **$7.8 million**, while investing activities provided **$8.3 million** from asset sales, and financing used **$15.4 million** for debt repurchase Cash Flow Summary (in thousands) | Cash Flow Summary (in thousands) | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $7,800 | $10,197 | | **Net cash provided by (used in) investing activities** | $8,313 | $(3,200) | | **Net cash provided by (used in) financing activities** | $(15,358) | $6,536 | | **Net increase in cash and cash equivalents** | $755 | $13,533 | | **Cash and cash equivalents at end of period** | $2,540 | $19,858 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail business segments, accounting policies, recent transactions, impairment charges on licenses and goodwill, and long-term debt structure - The company operates in three segments: Broadcast, Digital Media, and Publishing, specializing in Christian and conservative content[30](index=30&type=chunk) - The company invested in OneParty America LLC ("OPA"), which produced the documentary "2,000 Mules". This equity method investment generated **$3.9 million** in earnings for the company in Q2 2022[36](index=36&type=chunk)[39](index=39&type=chunk) - During H1 2022, the company completed several transactions, including the sale of land in Denver for **$8.2 million** (pre-tax gain of **$6.5 million**) and the sale of radio stations in Louisville for **$4.0 million** (pre-tax gain of **$0.5 million**)[56](index=56&type=chunk)[57](index=57&type=chunk) - Due to rising interest rates increasing the Weighted Average Cost of Capital (WACC), the company recorded a **$3.9 million** impairment charge on broadcast licenses and a **$0.1 million** charge on goodwill[101](index=101&type=chunk)[106](index=106&type=chunk)[114](index=114&type=chunk) - The company repurchased **$15.5 million** of its 2024 Notes for **$15.4 million** in cash during the first six months of 2022[261](index=261&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses H1 2022 financial performance, highlighting **6.6% revenue growth** and a surge in net income to **$10.9 million**, driven by Broadcast segment strength, asset sales, and equity investment earnings [Results of Operations](index=41&type=section&id=Results%20of%20Operations) H1 2022 total net revenue grew **6.6%** to **$131.3 million**, with Broadcast revenue up **11.1%**, driving net income to **$10.9 million** despite impairment charges Revenue by Segment (in thousands) | Revenue by Segment (in thousands) | H1 2022 | H1 2021 | % Change | | :--- | :--- | :--- | :--- | | Net Broadcast Revenue | $100,884 | $90,831 | 11.1% | | Net Digital Media Revenue | $21,104 | $19,958 | 5.7% | | Net Publishing Revenue | $9,303 | $12,346 | (24.6)% | | **Total Net Revenue** | **$131,291** | **$123,135** | **6.6%** | - Broadcast revenue growth was driven by increases in block programming (+$3.3 million), advertising (+$2.7 million), and digital revenue (+$3.3 million), reflecting higher demand as pandemic restrictions eased[264](index=264&type=chunk)[265](index=265&type=chunk)[266](index=266&type=chunk) - Publishing revenue declined primarily due to a **$2.7 million (36.6%)** decrease in net book sales from Regnery Publishing, reflecting lower volume and average price per unit compared to the prior year[278](index=278&type=chunk) - The company recorded impairment charges totaling **$4.1 million** in H1 2022 (**$3.9 million** for broadcast licenses, **$0.1 million** for goodwill) due to rising interest rates and changes in macroeconomic conditions[290](index=290&type=chunk)[292](index=292&type=chunk) [Liquidity and Capital Resources](index=53&type=section&id=Liquidity%20and%20Capital%20Resources) H1 2022 operating cash flow decreased to **$7.8 million**, offset by **$14.2 million** from asset sales, with **$15.4 million** used for debt repurchase, leaving **$24.0 million** ABL availability - Net cash from operating activities decreased by **$2.4 million** in H1 2022 compared to H1 2021, primarily due to a **$10.2 million** increase in operating expenses and a **$3.6 million** increase in accounts receivable[309](index=309&type=chunk) - The company is actively deleveraging, having repurchased **$15.5 million** principal of its 2024 Notes in H1 2022. Total long-term debt principal outstanding was **$159.4 million** at June 30, 2022[261](index=261&type=chunk)[342](index=342&type=chunk) - As of June 30, 2022, the company had **$24.0 million** in borrowing availability under its Asset-Based Revolving Credit Facility (ABL)[317](index=317&type=chunk)[337](index=337&type=chunk) - The company invested **$3.5 million** in and received a full return of its **$4.5 million** investment from OneParty America LLC ("OPA"), the entity behind the documentary "2,000 Mules"[310](index=310&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=59&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Disclosure regarding market risk is not provided as the company qualifies as a smaller reporting company - Disclosure about market risk is not required as Salem Media Group, Inc. qualifies as a smaller reporting company[348](index=348&type=chunk) [Item 4. Controls and Procedures](index=59&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2022, with no material changes to internal control over financial reporting - The company's principal executive and financial officers concluded that disclosure controls and procedures were effective as of the end of the reporting period[348](index=348&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[349](index=349&type=chunk) [PART II - OTHER INFORMATION](index=59&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=59&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, which management expects will not materially impact its financial position or operations - The company is involved in various legal proceedings in the normal course of business but does not expect them to have a material adverse effect on its financial condition[351](index=351&type=chunk) [Item 1A. Risk Factors](index=59&type=section&id=Item%201A.%20Risk%20Factors) Disclosure of risk factors is not required as the company qualifies as a smaller reporting company - Disclosure of risk factors is not required as Salem Media Group, Inc. qualifies as a smaller reporting company[352](index=352&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=59&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or use of proceeds were reported during the period - None reported[353](index=353&type=chunk) [Item 3. Defaults Upon Senior Securities](index=59&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported by the company during the period - None reported[354](index=354&type=chunk) [Item 5. Other Information](index=60&type=section&id=Item%205.%20Other%20Information) No other information required for disclosure under this item was reported by the company - None reported[356](index=356&type=chunk) [Item 6. Exhibits](index=60&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including officer certifications and XBRL data files - The report includes certifications from the CEO and CFO as required by the Exchange Act and U.S.C. Section 1350, as well as XBRL financial data[358](index=358&type=chunk)

Salem Media Group Inc. (OTCQX:SALM) Q1 2022 Earnings Conference Call May 10, 2022 4:00 PM ET Company Participants Evan Masyr - Chief Financial Officer David Santrella - Chief Executive Officer David Evans - Chief Operating Officer Conference Call Participants Michael Kupinski - NOBLE Capital Markets Lisa Springer - Singular Research Barry Sine - Spartan Capital Edward Riley - EF Hutton Operator Greetings, and welcome to the Salem Media Group, Inc Q1 2022 Earnings Call. [Operator Instructions] As a reminder, ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2022 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER 000-26497 SALEM MEDIA GROUP, INC. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) DELAWARE 77-0121400 (STATE OR OTHER JURISDICTION OF INCORPORATION OR ORGANIZATION) (I.R.S. EMPLOYER IDENTIFICATION NUMBER) 6400 NO ...

P. INVESTOR INVESTOR PRESENTATION PRESENTATION NASDAQ: SALM | March 2022 Safe Harbor Certain statements in this presentation constitute "forward-looking statements" within the meaning of the private securities litigation reform act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or im ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 COMMISSION FILE NUMBER 000-26497 SALEM MEDIA GROUP, INC. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) (STATE OR OTHER JURISDICTION OF INCORPORATION OR ORGANIZATION) 6400 NORTH B ...

Financial Data and Key Metrics Changes - Total revenue for Q4 2021 increased by 7.2% to $69.1 million compared to Q4 2020 [15][29] - Adjusted EBITDA increased by 9.3% to $10.8 million [29] - Total debt as of December 31, 2021, was $174.9 million, with a leverage ratio of 4.46, the lowest since 2000 [14][31] Business Line Data and Key Metrics Changes - Broadcast revenue increased by 6.1% to $51 million compared to Q4 2020, with digital revenue in the Broadcast division up by 26.8% [17][29] - National Digital Media division revenue increased by 2.9% to $11.6 million [31] - Publishing division revenue increased by 27.1% to $6.5 million, driven by strong book sales [26][31] Market Data and Key Metrics Changes - Local spot advertising revenue increased by 7.2%, while national spot advertising decreased by 27% compared to Q4 2020 [19] - Total spot advertising decreased by 13.9% compared to Q4 2019, indicating ongoing challenges in recovering to pre-pandemic levels [20] Company Strategy and Development Direction - The company is focusing on digital revenue growth, which accounted for 29.2% of total revenue in Q4 2021, up from 12.5% a decade ago [11] - The company plans to continue exploring real estate sales and has identified additional land sale opportunities [37][27] - The company aims to reduce leverage below 4 before considering other capital allocations, such as acquisitions [44] Management's Comments on Operating Environment and Future Outlook - Management noted that the advertising environment is improving, with increased spending in categories like home improvement and recruitment advertising [76] - The company expects total revenue to increase between 3% and 5% in Q1 2022 compared to Q1 2021 [33] Other Important Information - The company reported a significant increase in digital revenue, with expectations for continued growth in this segment [10][11] - The company has no pending acquisitions but remains open to opportunities that align with its strategic focus [27][65] Q&A Session Summary Question: Clarification on land sales and broadcasting - Management confirmed that they are still broadcasting on the AM band using diplexing from another transmitter tower [36] Question: Insights on book publishing performance - Management indicated strong Q4 book sales due to multiple successful titles and expressed optimism for 2022, a mid-term election year [40] Question: Performance of conservative talk formats post-Rush Limbaugh - Management reported picking up several affiliates since Rush Limbaugh's passing and noted strong performance in their network business [41][42] Question: Debt reduction targets and capital allocation - Management aims to reduce leverage below 4 before considering other capital allocations, with a current focus on debt retirement [44] Question: Political advertising spending environment - Management provided historical context for political ad spending and noted early signs of increasing digital dollars [68][70] Question: Guidance on Q1 revenue growth segments - Management highlighted home improvement, events, and recruitment advertising as strong categories driving growth, while book publishing is expected to be weaker [76][77]