Salem(US:SALM)2022-03-04 03:23Financial 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]