Salem Q2 Revenues Rise
August 9, 2010 at 4:23 PM (PT)
SALEM COMMUNICATIONS CORPORATION second-quarter consolidated total revenue rose 5.2% to $53.1 million, resulting in an increase of net income from a loss of $5 million (-21 cents/share) to a gain of $0.7 million (3 cents/share). Broadcast revenue rose 3.5% to $45.5 million (same station up 3.3% to $45.2 million). Non-broadcast revenue increased 16.9% to $7.7 million.
2010's numbers include a $1.1 million loss ($600,000 net of tax, or 3 cents/share) on early redemption of long-term debt due to the repurchase of $17.5 million of 9 5/8% senior subordinated notes due in 2016, and a $400,000 non-cash compensation charge ($200,000 net of tax, or 1 cent/share) related to expensing of stock options.
Included in 2009's numbers are a $1.1 million charge ($700,000 net of tax, or 5 cents/share) related to a rejected tower site relocation project at KDOW-A/SAN FRANCISCO and an abandoned tower site relocation for KKLA; a $13.7 million impairment of goodwill and indefinite-lived assets for the DALLAS and PORTLAND clusters and non-broadcast interests; a $1.6 million loss on the sale of KPXI/TYLER-LONGVIEW; a $2.3 million benefit related to the change in fair value of our interest rate swaps; a $700,000 gain on early redemption of long-term debt due to the repurchase of $1 million of the companu's 7 3/4% senior subordinated notes due in 2010; and a $100,000 non-cash compensation charge related to the expensing of stock options.
For the third quarter of 2010, SALEM is projecting total revenue to increase 1% to 3% over third quarter 2009 total revenue of $49.2 million.