Friday, August 7, 2020
Salem Media (SALM)
Overachieves Cash Flow Expectations; Raising Estimates
Salem Media Group is America’s leading radio broadcaster, Internet content provider, and magazine and book publisher targeting audiences interested in Christian and family-themed content and conservative values. In addition to its radio properties, Salem owns Salem Radio Network, which syndicates talk, news and music programming to approximately 2700 affiliates; Salem Radio Representatives, a national radio advertising sales force; Salem Web Network, a leading Internet provider of Christian content and online streaming; and Salem Publishing, a leading publisher of Christian themed magazines. Salem owns and operates 115 radio stations, with 73 stations in the nation’s top 25 top markets – and 25 in the top 10. Each of our radio properties has a full portfolio of broadcast and digital marketing opportunities.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Over delivers on expectations. Second quarter revenues of $52.9 million were better than our $50.6 million estimate. Notably, the 18.3% revenue decline is among the better performances among multi media companies. More importantly, the company significantly exceeds cash flow expectations on aggressive cost cutting, $6.2 million versus our loss estimate of $2.9 million. Each of the company’s operating segments performed better than expected.
Significant sequential improvement. Management highlighted that July revenues reflected significant sequential monthly improvement with total company revenues modestly down. We are reticent to revise our Q3 revenue estimate, which reflects a 10% yoy decline, due to …
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This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst
certification and important disclosures included in the full report.
NOTE: investment decisions should not be based upon the content of
this research summary. Proper due diligence is required before
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