Salem Media Group, Inc. Announces First Quarter 2022 Total Revenue of $62.6 Million
Salem Media Group (NASDAQ: SALM) reported a 5.5% increase in consolidated total revenue for Q1 2022, totaling $62.6 million. Operating income rose 14.2% to $5.0 million, while net income surged 438.4% to $1.7 million, or $0.06 per diluted share. Broadcast net revenue increased 10.0% to $48.4 million, yet Same Station SOI fell 5.0% to $10.3 million. Digital media revenue and operating income also saw significant gains, increasing 7.1% and 93.1% respectively. However, publishing revenue dropped 31.8% to $3.9 million, resulting in an operating loss.
- Total revenue increased 5.5% to $62.6 million.
- Operating income improved 14.2% to $5.0 million.
- Net income skyrocketed 438.4% to $1.7 million, or $0.06 per diluted share.
- Broadcast net revenue rose 10.0% to $48.4 million.
- Digital media revenue grew 7.1% to $10.3 million, with operating income up 93.1%.
- Total operating expenses increased 4.8% to $57.6 million.
- Adjusted EBITDA decreased 13.6% to $6.8 million.
- Publishing revenue decreased 31.8% to $3.9 million, leading to an operating loss.
First Quarter 2022 Results
For the quarter ended
Consolidated
-
Total revenue increased
5.5% to from$62.6 million ;$59.4 million -
Total operating expenses increased
4.8% to from$57.6 million ;$55.0 million -
Operating expenses, excluding gains or losses on the disposition of assets, stock-based compensation expense, changes in the estimated fair value of contingent earn-out consideration, impairments, depreciation expense and amortization expense (1) increased
8.4% to from$55.8 million ;$51.4 million -
Operating income increased
14.2% to from$5.0 million ;$4.4 million -
Net income increased
438.4% to , or$1.7 million net income per diluted share from$0.06 , or$0.3 million net income diluted per share;$0.01 -
EBITDA (1) increased
8.6% to from$8.2 million ;$7.5 million -
Adjusted EBITDA (1) decreased
13.6% to from$6.8 million ; and$7.9 million -
Net cash used by operating activities decreased
53.1% to from$4.3 million .$9.2 million
Broadcast
-
Net broadcast revenue increased
10.0% to from$48.4 million ;$44.0 million -
Station Operating Income (“SOI”) (1) decreased
3.7% to from$10.3 million ;$10.7 million -
Same Station (1) net broadcast revenue increased9.4% to from$48.1 million ; and$44.0 million -
Same Station SOI (1) decreased
5.0% to from$10.3 million .$10.9 million
Digital Media
-
Digital media revenue increased
7.1% to from$10.3 million ; and$9.6 million -
Digital Media Operating Income (1) increased
93.1% to from$1.8 million .$0.9 million
Publishing
-
Publishing revenue decreased
31.8% to from$3.9 million ; and$5.7 million -
Publishing Operating Loss (1) was
compared to Publishing Operating Income (1) of$0.6 million .$0.5 million
Included in the results for the quarter ended
-
A
($1.7 million , net of tax, or$1.3 million per diluted share) net gain on the disposition of assets relates primarily to the gain on sale of land in$0.05 Phoenix, Arizona offset by various fixed asset disposals; and -
A
($0.2 million , net of tax, or$0.2 million per share) charge for debt modification costs; and$0.01 -
A
non-cash compensation charge ($0.1 million , net of tax) related to the expensing of stock options.$0.1 million
Included in the results for the quarter ended
-
A
($0.3 million , net of tax, or$0.2 million per share) net loss on the disposition of assets recorded upon the closing of the sale of radio station$0.01 WKAT-AM and an FM translator inMiami, Florida ; and -
A
non-cash compensation charge ($0.1 million , net of tax) related to the expensing of stock options.$0.1 million
Per share numbers are calculated based on 27,610,407 diluted weighted average shares for the quarter ended
Balance Sheet
As of
Acquisitions and Divestitures
The following transactions were completed since
-
On
May 2, 2022 , the company acquired websites and related assets of Retirement Media for in cash.$0.2 million -
The company invested
, for a total investment to date of$3.5 million , in a$4.5 million Limited Liability Company “LLC” that will own, distribute, and market a motion picture. -
On
February 15, 2022 , the company closed on the acquisition of radio stationWLCC-AM and an FM translator in theTampa, Florida market for of cash.$0.6 million -
On
January 10, 2022 , the company closed on the sale of 4.5 acres of land inPhoenix, Arizona for in cash.$2.0 million
Pending transactions:
-
On
August 31, 2021 , the company entered into an agreement to sell 9.3 acres of land in theDenver area for . The company expects to close this sale in the second quarter of 2022 and plans to continue broadcasting both$8.2 million KRKS-AM andKBJD-AM from this site. -
On
June 2, 2021 , the company entered into an agreement to acquire radio stationKKOL-AM inSeattle, Washington for . The company paid$0.5 million in cash into an escrow account and began operating the station under a Local Marketing Agreement on$0.1 million June 7, 2021 . The company expects the transaction to close in the latter half of 2022. -
On
February 5, 2020 , the company entered into an Asset Purchase Agreement withWord Broadcasting to sell radio stationsWFIA-AM ,WFIA-FM andWGTK-AM inLouisville, Kentucky for with credits applied from amounts previously paid, including a portion of the monthly fees paid under a Time Brokerage Agreement (“TBA”). Due to changes in debt markets, the transaction was not funded, and it is uncertain when, or if, the transaction will close.$4.0 million Word Broadcasting continues to program the stations under a TBA that began inJanuary 2017 .
Conference Call Information
Salem will host a teleconference to discuss its results on
Follow us on Twitter @SalemMediaGrp.
Second Quarter 2022 Outlook
For the second quarter of 2022, the company is projecting total revenue to increase between
A reconciliation of non-GAAP operating expenses, excluding gains or losses on the disposition of assets, stock-based compensation expense, changes in the estimated fair value of contingent earn-out consideration, impairments, depreciation expense and amortization expense to the most directly comparable GAAP measure is not available without unreasonable efforts on a forward-looking basis due to the potential high variability, complexity and low visibility with respect to the charges excluded from this non-GAAP financial measure, in particular, the change in the estimated fair value of earn-out consideration, impairments and gains or losses from the disposition of fixed assets. The company expects the variability of the above charges may have a significant, and potentially unpredictable, impact on its future GAAP financial results.
About
Forward-Looking Statements
Statements used in this press release that relate to future plans, events, financial results, prospects or performance are forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those anticipated as a result of certain risks and uncertainties, including but not limited to the ability of Salem to close and integrate announced transactions, market acceptance of Salem’s radio station formats, competition from new technologies, adverse economic conditions, and other risks and uncertainties detailed from time to time in Salem's reports on Forms 10-K, 10-Q, 8-K and other filings filed with or furnished to the
(1) Regulation G
Management uses certain non-GAAP financial measures defined below in communications with investors, analysts, rating agencies, banks and others to assist such parties in understanding the impact of various items on its financial statements. The company uses these non-GAAP financial measures to evaluate financial results, develop budgets, manage expenditures and as a measure of performance under compensation programs.
The company’s presentation of these non-GAAP financial measures should not be considered as a substitute for or superior to the most directly comparable financial measures as reported in accordance with GAAP.
Regulation G defines and prescribes the conditions under which certain non-GAAP financial information may be presented in this earnings release. The company closely monitors EBITDA, Adjusted EBITDA, Station Operating Income (“SOI”),
The company defines Station Operating Income (“SOI”) as net broadcast revenue minus broadcast operating expenses. The company defines Digital Media Operating Income as net Digital Media Revenue minus Digital Media Operating Expenses. The company defines Publishing Operating Income (Loss) as net Publishing Revenue minus Publishing Operating Expenses. The company defines EBITDA as net income before interest, taxes, depreciation, and amortization. The company defines Adjusted EBITDA as EBITDA before gains or losses on the disposition of assets, before changes in the estimated fair value of contingent earn-out consideration, before impairments, before net miscellaneous income and expenses, before gain on bargain purchase, before (gain) loss on early retirement of long-term debt and before non-cash compensation expense. SOI, Digital Media Operating Income, Publishing Operating Income (Loss), EBITDA and Adjusted EBITDA are commonly used by the broadcast and media industry as important measures of performance and are used by investors and analysts who report on the industry to provide meaningful comparisons between broadcasters. SOI, Digital Media Operating Income, Publishing Operating Income (Loss), EBITDA and Adjusted EBITDA are not measures of liquidity or of performance in accordance with GAAP and should be viewed as a supplement to and not a substitute for or superior to its results of operations and financial condition presented in accordance with GAAP. The company’s definitions of SOI, Digital Media Operating Income, Publishing Operating Income (Loss), EBITDA and Adjusted EBITDA are not necessarily comparable to similarly titled measures reported by other companies.
The company defines Adjusted Free Cash Flow as Adjusted EBITDA less cash paid for capital expenditures, less cash paid for income taxes, and less cash paid for interest. The company considers Adjusted Free Cash Flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by its operations after cash paid for capital expenditures, cash paid for income taxes and cash paid for interest. A limitation of Adjusted Free Cash Flow as a measure of liquidity is that it does not represent the total increase or decrease in its cash balance for the period. The company uses Adjusted Free Cash Flow, a non-GAAP liquidity measure, both in presenting its results to stockholders and the investment community, and in its internal evaluation and management of the business. The company’s presentation of Adjusted Free Cash Flow is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. The company’s definition of Adjusted Free Cash Flow is not necessarily comparable to similarly titled measures reported by other companies.
The company defines
For all non-GAAP financial measures, investors should consider the limitations associated with these metrics, including the potential lack of comparability of these measures from one company to another.
The Supplemental Information tables that follow the condensed consolidated financial statements provide reconciliations of the non-GAAP financial measures that the company uses in this earnings release to the most directly comparable measures calculated in accordance with GAAP. The company uses non-GAAP financial measures to evaluate financial performance, develop budgets, manage expenditures, and determine employee compensation. The company’s presentation of this additional information is not to be considered as a substitute for or superior to the directly comparable measures as reported in accordance with GAAP.
|
||||||||
Condensed Consolidated Statements of Operations |
||||||||
(in thousands, except share and per share data) |
||||||||
|
|
|
||||||
|
|
Three Months Ended |
||||||
|
|
|
||||||
|
|
2021 |
|
2022 |
||||
|
|
(Unaudited) |
||||||
Net broadcast revenue |
|
$ |
44,048 |
|
|
$ |
48,432 |
|
Net digital media revenue |
|
|
9,619 |
|
|
|
10,300 |
|
Net publishing revenue |
|
|
5,686 |
|
|
|
3,877 |
|
Total revenue |
|
|
59,353 |
|
|
|
62,609 |
|
Operating expenses: |
|
|
|
|
|
|
||
Broadcast operating expenses |
|
|
33,343 |
|
|
|
38,121 |
|
Digital media operating expenses |
|
|
8,673 |
|
|
|
8,473 |
|
Publishing operating expenses |
|
|
5,205 |
|
|
|
4,467 |
|
Unallocated corporate expenses |
|
|
4,288 |
|
|
|
4,810 |
|
Change in the estimated fair value of contingent earn-out consideration |
|
|
— |
|
|
|
(5 |
) |
Debt modification costs |
|
|
— |
|
|
|
228 |
|
Depreciation and amortization |
|
|
3,170 |
|
|
|
3,276 |
|
Net (gain) loss on the disposition of assets |
|
|
318 |
|
|
|
(1,735 |
) |
Total operating expenses |
|
|
54,997 |
|
|
|
57,635 |
|
Operating income |
|
|
4,356 |
|
|
|
4,974 |
|
Other income (expense): |
|
|
|
|
|
|
||
Interest income |
|
|
1 |
|
|
|
— |
|
Interest expense |
|
|
(3,926 |
) |
|
|
(3,394 |
) |
Loss on early retirement of long-term debt |
|
|
— |
|
|
|
(53 |
) |
Net miscellaneous income and (expenses) |
|
|
22 |
|
|
|
1 |
|
Net income before income taxes |
|
|
453 |
|
|
|
1,528 |
|
Provision for (benefit from) income taxes |
|
|
130 |
|
|
|
(211 |
) |
Net income |
|
$ |
323 |
|
|
$ |
1,739 |
|
|
|
|
|
|
|
|
||
Basic earnings per share Class A and Class B common stock |
|
$ |
0.01 |
|
|
$ |
0.06 |
|
Diluted earnings per share Class A and Class B common stock |
|
$ |
0.01 |
|
|
$ |
0.06 |
|
|
|
|
|
|
|
|||
Basic weighted average Class A and Class B common stock shares outstanding |
|
|
26,736,639 |
|
|
|
27,177,375 |
|
Diluted weighted average Class A and Class B common stock shares outstanding |
|
|
27,138,773 |
|
|
|
27,610,407 |
|
|
||||||
Condensed Consolidated Balance Sheets |
||||||
(in thousands) |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
Assets |
|
|
|
|
|
|
Cash |
|
$ |
1,785 |
|
$ |
— |
Accounts receivable, net |
|
|
25,663 |
|
|
28,000 |
Other current assets |
|
|
14,066 |
|
|
15,330 |
Property and equipment, net |
|
|
79,339 |
|
|
80,262 |
Operating and financing lease right-of-use assets |
|
|
43,665 |
|
|
45,985 |
Intangible assets, net |
|
|
346,438 |
|
|
346,294 |
Deferred financing costs |
|
|
843 |
|
|
793 |
Other assets |
|
|
4,313 |
|
|
6,994 |
Total assets |
|
$ |
516,112 |
|
$ |
523,658 |
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
Current liabilities |
|
$ |
51,455 |
|
$ |
57,031 |
Long-term debt |
|
|
170,581 |
|
|
168,300 |
Operating and financing lease liabilities, less current portion |
|
|
42,273 |
|
|
44,777 |
Deferred income taxes |
|
|
67,012 |
|
|
67,007 |
Other liabilities |
|
|
6,580 |
|
|
6,393 |
Stockholders’ Equity |
|
|
178,211 |
|
|
180,150 |
Total liabilities and stockholders’ equity |
|
$ |
516,112 |
|
$ |
523,658 |
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Dollars in thousands, except share and per share data) |
|||||||||||||||||||||||
|
Class A |
|
Class B |
|
|
|
|
|
|
|
|
||||||||||||
|
Common Stock |
|
Common Stock |
|
Additional |
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
Paid-In |
|
Accumulated |
|
|
|
|
||||||||
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Capital |
|
Deficit |
|
Stock |
|
Total |
||||||||
Stockholders’ equity, |
23,447,317 |
|
$ |
227 |
|
5,553,696 |
|
$ |
56 |
|
$ |
247,025 |
|
$ |
(78,023 |
) |
|
$ |
(34,006 |
) |
|
$ |
135,279 |
Stock-based compensation |
— |
|
|
— |
|
— |
|
|
— |
|
|
78 |
|
|
— |
|
|
|
— |
|
|
|
78 |
Options exercised |
185,782 |
|
|
2 |
|
— |
|
|
— |
|
|
390 |
|
|
— |
|
|
|
— |
|
|
|
392 |
Net income |
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
323 |
|
|
|
— |
|
|
|
323 |
Stockholders’ equity,
|
23,633,099 |
|
$ |
229 |
|
5,553,696 |
|
$ |
56 |
|
$ |
247,493 |
|
$ |
(77,700 |
) |
|
$ |
(34,006 |
) |
|
$ |
136,072 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A |
|
Class B |
|
|
|
|
|
|
|
|
||||||||||||
|
Common Stock |
|
Common Stock |
|
Additional |
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
Paid-In |
|
Accumulated |
|
|
|
|
||||||||
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Capital |
|
Deficit |
|
Stock |
|
Total |
||||||||
Stockholders’ equity, |
23,922,974 |
|
$ |
232 |
|
5,553,696 |
|
$ |
56 |
|
$ |
248,438 |
|
$ |
(36,509 |
) |
|
$ |
(34,006 |
) |
|
$ |
178,211 |
Stock-based compensation |
— |
|
|
— |
|
— |
|
|
— |
|
|
106 |
|
|
— |
|
|
|
— |
|
|
|
106 |
Options exercised |
40,913 |
|
|
— |
|
— |
|
|
— |
|
|
94 |
|
|
— |
|
|
|
— |
|
|
|
94 |
Lapse in restricted shares |
14,854 |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
Net income |
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
1,739 |
|
|
|
— |
|
|
|
1,739 |
Stockholders’ equity, |
23,978,741 |
|
$ |
232 |
|
5,553,696 |
|
$ |
56 |
|
$ |
248,638 |
|
$ |
(34,770 |
) |
|
$ |
(34,006 |
) |
|
$ |
180,150 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(Dollars in thousands) |
|||||||
(Unaudited) |
|||||||
|
Three Months Ended
|
||||||
|
2021 |
|
2022 |
||||
OPERATING ACTIVITIES |
|
|
|
||||
Net income |
$ |
323 |
|
|
$ |
1,739 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
||
Non-cash stock-based compensation |
|
78 |
|
|
|
106 |
|
Depreciation and amortization |
|
3,170 |
|
|
|
3,276 |
|
Amortization of deferred financing costs |
|
213 |
|
|
|
247 |
|
Non-cash lease expense |
|
2,161 |
|
|
|
2,202 |
|
Provision for bad debts |
|
(295 |
) |
|
|
(209 |
) |
Deferred income taxes |
|
188 |
|
|
|
(5 |
) |
Change in the estimated fair value of contingent earn-out consideration |
|
— |
|
|
|
(5 |
) |
Loss on early retirement of long-term debt |
|
— |
|
|
|
53 |
|
Net (gain) loss on the disposition of assets |
|
318 |
|
|
|
(1,735 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
|
||
Accounts receivable and unbilled revenue |
|
2,549 |
|
|
|
(2,229 |
) |
Inventories |
|
(93 |
) |
|
|
(411 |
) |
Prepaid expenses and other current assets |
|
(750 |
) |
|
|
(748 |
) |
Accounts payable and accrued expenses |
|
2,490 |
|
|
|
4,024 |
|
Operating lease liabilities |
|
(2,497 |
) |
|
|
(1,852 |
) |
Contract liabilities |
|
1,122 |
|
|
|
136 |
|
Deferred rent income |
|
170 |
|
|
|
(58 |
) |
Other liabilities |
|
29 |
|
|
|
— |
|
Income taxes payable |
|
21 |
|
|
|
(218 |
) |
Net cash provided by operating activities |
|
9,197 |
|
|
|
4,313 |
|
INVESTING ACTIVITIES |
|
|
|
|
|
||
Cash paid for capital expenditures net of tenant improvement allowances |
|
(1,859 |
) |
|
|
(3,439 |
) |
Capital expenditures reimbursable under tenant improvement allowances and trade agreements |
|
— |
|
|
|
(40 |
) |
Deposit on broadcast assets and radio station acquisitions |
|
(100 |
) |
|
|
— |
|
Purchases of broadcast assets and radio stations |
|
— |
|
|
|
(540 |
) |
Investment in LLC |
|
— |
|
|
|
(2,000 |
) |
Proceeds from sale of long-lived assets |
|
3,501 |
|
|
|
2,001 |
|
Other |
|
(238 |
) |
|
|
(858 |
) |
Net cash provided by (used in) investing activities |
|
1,304 |
|
|
|
(4,876 |
) |
FINANCING ACTIVITIES |
|
|
|
|
|
||
Payments to repurchase 2024 Notes |
|
— |
|
|
|
(2,531 |
) |
Proceeds from borrowings under ABL Facility |
|
16 |
|
|
|
6,257 |
|
Payments on ABL Facility |
|
(5,016 |
) |
|
|
(6,257 |
) |
Proceeds from borrowings under PPP Loans |
|
11,195 |
|
|
|
— |
|
Payments of debt issuance costs |
|
(3 |
) |
|
|
— |
|
Proceeds from the exercise of stock options |
|
392 |
|
|
|
94 |
|
Payments on financing lease liabilities |
|
(16 |
) |
|
|
(16 |
) |
Book overdraft |
|
— |
|
|
|
1,231 |
|
Net cash provided by (used in) financing activities |
|
6,568 |
|
|
|
(1,222 |
) |
Net increase (decrease) in cash and cash equivalents |
|
17,069 |
|
|
|
(1,785 |
) |
Cash and cash equivalents at beginning of year |
|
6,325 |
|
|
|
1,785 |
|
Cash and cash equivalents at end of period |
$ |
23,394 |
|
|
$ |
— |
|
The company defines EBITDA (1) as net income before interest, taxes, depreciation, and amortization. The table below presents a reconciliation of EBITDA (1) to Net Income (Loss), the most directly comparable GAAP measure. EBITDA (1) is a non-GAAP financial performance measure that is not to be considered a substitute for or superior to the directly comparable measures reported in accordance with GAAP. The company defines Adjusted EBITDA (1) as EBITDA (1) before gains or losses on the disposition of assets, before changes in the estimated fair value of contingent earn-out consideration, before impairments, before net miscellaneous income and expenses, before (gain) loss on early retirement of long-term debt and before non-cash compensation expense. The table below presents a reconciliation of Adjusted EBITDA (1) to Net Income, the most directly comparable GAAP measure. Adjusted EBITDA (1) is a non-GAAP financial performance measure that is not to be considered a substitute for or superior to the directly comparable measures reported in accordance with GAAP.
|
||||||
Supplemental Information |
||||||
(in thousands) |
||||||
Three Months Ended |
||||||
|
||||||
2021 |
|
2022 |
||||
(Unaudited) |
||||||
Net income |
$ |
323 |
$ |
1,739 |
||
Plus interest expense, net of capitalized interest |
3,926 |
3,394 |
||||
Plus provision for (benefit from) income taxes |
130 |
(211) |
||||
Plus depreciation and amortization |
3,170 |
3,276 |
||||
Less interest income |
|
(1) |
|
— |
||
EBITDA |
$ |
7,548 |
$ |
8,198 |
||
Less net (gain) loss on the disposition of assets |
318 |
(1,735) |
||||
Less change in the estimated fair value of contingent earn-out consideration |
|
|
— |
|
|
(5) |
Plus debt modification costs |
|
|
— |
|
|
228 |
Plus loss on early retirement of long-term debt |
— |
53 |
||||
Plus net miscellaneous income and expenses |
|
|
(22) |
|
|
(1) |
Plus non-cash stock-based compensation |
|
78 |
|
106 |
||
Adjusted EBITDA |
$ |
7,922 |
$ |
6,844 |
The company defines Adjusted Free Cash Flow (1) as Adjusted EBITDA (1) less cash paid for capital expenditures, less cash paid for income taxes, and less cash paid for interest. The company considers Adjusted Free Cash Flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by its operations after cash paid for capital expenditures, cash paid for income taxes and cash paid for interest. A limitation of Adjusted Free Cash Flow as a measure of liquidity is that it does not represent the total increase or decrease in its cash balance for the period. The company uses Adjusted Free Cash Flow, a non-GAAP liquidity measure, both in presenting its results to stockholders and the investment community, and in its internal evaluation and management of the business. The company’s presentation of Adjusted Free Cash Flow is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. The company’s definition of Adjusted Free Cash Flow is not necessarily comparable to similarly titled measures reported by other companies.
The table below presents a reconciliation of Adjusted Free Cash Flow to net cash provided by operating activities, the most directly comparable GAAP measure. Adjusted Free Cash Flow is a non-GAAP liquidity measure that is not to be considered a substitute for or superior to the directly comparable measures reported in accordance with GAAP.
|
||||||||
Supplemental Information |
||||||||
(in thousands) |
||||||||
Three Months Ended |
||||||||
|
||||||||
2021 |
2022 |
|||||||
(Unaudited) |
||||||||
Net cash provided by operating activities |
$ |
9,197 |
|
$ |
4,313 |
|
||
Non-cash stock-based compensation |
(78 |
) |
(106 |
) |
||||
Depreciation and amortization |
(3,170 |
) |
(3,276 |
) |
||||
Amortization of deferred financing costs |
(213 |
) |
(247 |
) |
||||
Non-cash lease expense |
|
|
(2,161 |
) |
|
|
(2,202 |
) |
Provision for bad debts |
295 |
|
209 |
|
||||
Deferred income taxes |
(188 |
) |
5 |
|
||||
Change in the estimated fair value of contingent earn- out consideration |
|
|
— |
|
|
|
5 |
|
Net (gain) loss on the disposition of assets |
(318 |
) |
1,735 |
|
||||
Loss on early retirement of long-term debt |
— |
|
(53 |
) |
||||
Changes in operating assets and liabilities: |
|
|||||||
Accounts receivable and unbilled revenue |
(2,549 |
) |
2,229 |
|
||||
Inventories |
93 |
|
411 |
|
||||
Prepaid expenses and other current assets |
750 |
|
748 |
|
||||
Accounts payable and accrued expenses |
(2,490 |
) |
(4,024 |
) |
||||
Contract liabilities |
(1,122 |
) |
(136 |
) |
||||
Operating lease liabilities (deferred rent) |
2,497 |
|
1,852 |
|
||||
Deferred rent income |
|
|
(170 |
) |
|
|
58 |
|
Other liabilities |
|
|
(29 |
) |
|
|
— |
|
Income taxes payable |
|
|
(21 |
) |
|
|
218 |
|
Net income |
$ |
323 |
|
$ |
1,739 |
|
||
Plus interest expense, net of capitalized interest |
3,926 |
|
3,394 |
|
||||
Plus provision for (benefit from) income taxes |
130 |
|
(211 |
) |
||||
Plus depreciation and amortization |
3,170 |
|
3,276 |
|
||||
Less interest income |
|
(1 |
) |
|
— |
|
||
EBITDA |
$ |
7,548 |
|
$ |
8,198 |
|
||
Plus net (gain) loss on the disposition of assets |
318 |
|
(1,735 |
) |
||||
Plus change in the estimated fair value of contingent earn-out consideration |
|
|
— |
|
|
|
(5 |
) |
Plus debt modification costs |
|
|
— |
|
|
|
228 |
|
Plus loss on early retirement of long-term debt |
— |
|
53 |
|
||||
Plus net miscellaneous income and expenses |
|
|
(22 |
) |
|
|
(1 |
) |
Plus non-cash stock-based compensation |
|
78 |
|
|
106 |
|
||
Adjusted EBITDA |
$ |
7,922 |
|
$ |
6,844 |
|
||
Less net cash paid for capital expenditures (1) |
(1,859 |
) |
(3,439 |
) |
||||
Plus cash received (paid for) taxes |
79 |
|
(12 |
) |
||||
Less cash paid for interest, net of capitalized interest |
|
(53 |
) |
|
(65 |
) |
||
Adjusted Free Cash Flow |
$ |
6,089 |
|
$ |
3,328 |
|||
(1) Net cash paid for capital expenditures reflects actual cash payments net of cash reimbursements under tenant improvement allowances and net of property and equipment acquired in trade transactions. |
Selected Debt Data |
Outstanding at |
Applicable Interest Rate |
|
|
|||
Senior Secured Notes due 2028 (1) |
$ |
114,731,000 |
|
Senior Secured Notes due 2024 (2) |
$ |
57,674,000 |
|
(1) |
|||
(2) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220506005535/en/
Executive Vice President and Chief
Financial Officer
(805) 384-4512
evan@salemmedia.com
Source:
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