Salem(SALM)2023-11-13 22:29Revenue Sources - Broadcast advertising revenue from Los Angeles and Dallas markets contributed 13.9% and 18.7% respectively to total net broadcast advertising revenue for the nine-month period ended September 30, 2023, compared to 12.8% and 19.2% in the same period of the prior year [186]. - 98% of broadcast revenue was sold for cash during the nine months ended September 30, 2023 [175]. - Digital media revenue is influenced by the number of impressions delivered and the level of advertisements sold, with seasonal fluctuations typically resulting in higher revenue in the second and fourth quarters [178]. - The company’s publishing revenue is influenced by the retail price and number of books sold, with increased demand during election years [181]. Digital Media Challenges - The shift from desktop to mobile device page views negatively impacts digital revenue, as mobile views carry lower advertisement rates and fewer ads per page [187]. - The company’s digital media segment is affected by the timing of Easter, which generates higher product downloads from church product websites [178]. Operational Challenges - Ongoing global supply chain disruptions and inflation may adversely impact advertising and promotional spending, potentially reducing revenue growth rates [183]. - The company’s broadcasting segment is experiencing challenges due to audiences spending less time commuting and the removal of AM radio receivers in certain vehicles [185]. Financial Measures - Same Station Operating Income is a key non-GAAP financial measure that provides a meaningful comparison of core broadcast operations, excluding new stations and those no longer owned [188]. - Same Station net broadcast revenue is defined as revenue from radio stations and networks owned or operated in the same format on the first and last day of each quarter, compared to the prior year [189]. - Management uses non-GAAP financial measures to evaluate financial results and manage expenditures, which assists in understanding the impact of various items on financial statements [190]. Internal Controls - The company’s disclosure controls and procedures were evaluated as effective by principal executive and financial officers as of the end of the reporting period [344]. - No changes in internal control over financial reporting were identified during the quarter ended September 30, 2023, that materially affected internal controls [345]. Lease Expenses - Lease expense increased by 0.9 million increase from Common Area Maintenance (CAM) and Consumer Price Index (CPI) adjustments [184]. Evaluation of Operating Segments - The company’s operating segments are evaluated based on operating income and expenses, excluding costs related to corporate functions and certain other expenses [167].