Yet Another Financially Weak Broadcaster

[Kelly A]

Sometimes centralization causes a one-time expensible cost when all the local people in a particular function are let go and given severance while new people are hired in the centralized location. So, in this case, if Salem had centralized traffic and continuity and production, they might have had severance in a dozen or more market clusters and the start-up expenses of the new centralized function. That could be a sizable amount of money if changes in office space were involved, such as reducing local market square footage and building out at the new central location.

Having implemented the first centralized structure for TV in the country, (Digital Centralcasting(c)) all true. Depending on future intentions like breaking-off, selling or horse trading stations, centralizing operation functions can create challenges, because the new owners can't transfer the centralized roles.

 

[vchimpanzee]

They have a focus on a limited type of content. Christian and Conservative. They have a lot of competition in what they do both for and not for profit.

They were in St. Louis for only a short period of time. That market has numerous Christian and Conservative radio stations and it wasn't easy to compete. They tried Conservative Talk, then Urban Gospel and Health Talk before selling the stations to Relevant radio

WMUU Greenville SC was connected with Bob Jones University. I don't know if it was Salem affiliated then. These days it is conservative talk WGTK and 100,000 watts, though the station with the popular talk show hosts is about to go from covering part of the market to 100,000 watts.

You want to talk about Conservative Christian programming? They made Mantovani look hip. Although a lot of the music was secular during the day. Some was borderline classical. serenade-radio.com has pretty much the same thing on its "Light Program" on Sunday evenings. There was also some real classical music. And preaching. At night and on Sunday it sounded like BBN does when it plays music.

 

[vchimpanzee]

They also do CCM (K-LOVE will compete with them in markets where they have CCM stations, since EMF only avoids putting K-LOVE on in areas with a non profit CCM station)

Greensboro NC (actually just Winston-Salem but I think there is a Greensboro translator) has WBFJ. However, WWLV is also heard in parts of the Charlotte area, where WRCM is K-Love on the south end.

Lots of stations run SRN News. VCY America carries SRN News (They used to use USA Radio)

I think this is what was on WAVO Charlotte, which simulcast Christian WHVN before spending 10 years playing standards and then returning to a WHVN simulcast before Billy Graham's people took it over. While it was still standards, WAVO began calling it Town Hall.

 

[Y2kTheNewOldies]

Salem Issues New Notes To Pay Off $36.5M In Debt Due Next Year.

Salem Media Group says it has paid off the remaining $36.5 million in outstanding principal on its 6.75% senior secured notes that become due next year. The payoff was funded

www.insideradio.com

Here is an Update on Salem.

 

[Kelly A]

Here is an Update on Salem.

Doesn't sound like Salem is exactly knocking on Death's door, like some here want to believe.

 

[radiofan2023]

Doesn't sound like Salem is exactly knocking on Death's door, like some here want to believe.

They’re knocking on heaven’s door!

 

[Kelly A]

They’re knocking on heaven’s door!

At least doing a successful job of paying down debt!

 

[PTBoardOp94]

Share price has, often, nothing to do with the profitability of a business. Salem is doing moderately well, despite the recession and the pandemic, but is "contaminated" by a couple of more prominent big radio companies that are in serious debt-related situations.

Salem was not profitable in 2022 and is not expected to be profitable in 2023. That will usually result in a low share price.

It appears the large change in operating expense was due to a legal settlement paid in December 2022, amounting to $4.7 million, in addition to $14 million in asset impairment. See page 68 of the annual report.

 

[Kelly A]

Salem was not profitable in 2022 and is not expected to be profitable in 2023. That will usually result in a low share price.

It appears the large change in operating expense was due to a legal settlement paid in December 2022, amounting to $4.7 million, in addition to $14 million in asset impairment. See page 68 of the annual report.

If you have a few minutes, listen to the podcast The Divided Dial from WNYC (link below). In particular, listen to Episode 5 "There's Something About Radio": The host interviews Phil Boyce, Head of Talk Programming from Salem. Phil explains that Salem isn't just about being profitable, and why: On the Media: The Divided Dial | WNYC Studios | Podcasts

 

[PTBoardOp94]

Thanks for sharing that, Kelly. While the company says they have a mission, they are still a corporation. If they want to be a non-profit, their founder runs one that owns a bunch of radio stations which carry Salem programs: the Delmarva Education Association.

I didn't realize Salem was a party to the Dominion libel lawsuits. I wonder if that was the cause of the $4.7 million settlement I mentioned above.

 

[Kelly A]

I didn't realize Salem was a party to the Dominion libel lawsuits. I wonder if that was the cause of the $4.7 million settlement I mentioned above.

After listening to the interview, then seeing their annual report, I'm sure there's some legal defense expenses baked in there somewhere.