View
8
Download
0
Category
Preview:
Citation preview
BROADCASTING
DIGITAL
PUBLISHING
INVESTOR PRESENTATION
NASDAQ: SALM | January 2021
INVESTOR
PRESENTATION
1
Safe Harbor
Certain statements in this presentation constitute “forward-looking statements” within the meaning of the private securities litigation reform act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such “forward-looking statements.”
This presentation also contains “non-GAAP financial measures” within the meaning of regulation G, specifically station operating income and Adjusted EBITDA. In conformity with regulation G, information reconciling the non-GAAP financial measures included in this presentation to the most directly comparable financial measures prepared in accordance with generally accepted accounting principles is available on the investor relations portion of the company's website at www.Salemmedia.com, as part of the most current report on form 8-K and earnings release issued by Salem Media Group.
2
99 Radio
Stations
Daily BibleBible Study
Tools
BROADCASTING
DIGITAL
PUBLISHING
Salem Media Group is America’s leading multimedia company specializing in Christian and conservative content
Salem’s history dates back to 1974 with the launch of our first Christian Teaching and Talk radio station, and went public in 1999
We reach millions of Christians and conservatives daily across the nation with compelling content, fresh commentary and relevant information
Three segments comprised of radio broadcasting, digital media and book publishing
Salem Media has one of the largest media platforms
99 radio stations featuring compelling Christian and conservative programs from organizations such as Focus on the Family and Jay Sekulow Live, and hosts including Hugh Hewitt, Sebastian Gorka and Dennis Prager
Multiple highly-trafficked websites such as Christianity.com, BibleStudyTools.com, Crosswalk.com and Townhall.com
Who We Are
3
Salem’s Reach and Impact
Radio reaches over 268 million people, or 92% of Americans, on a weekly basis
Largest commercial Christian radio broadcaster in America
Largest News Talk radio broadcaster, and third largest radio broadcaster, in the top 25 U.S. markets by station count
Websites and mobile apps are a growing source of Christian and conservative content
Salem’s website and app platform receives approximately 120 million visits every month and is growing steadily
Publisher of Christian and conservative books
Recent authors include Ted Cruz, Jim Daly, Sebastian Gorka, Greg Laurie, David Limbaugh, Michelle Malkin, Dennis Prager, and Mark Steyn
RADIO
BROADCASTING
DIGITAL
MEDIA
BOOK
PUBLISHING
4
Our Integrated Multimedia Approach
Publishing$17.77.5%
Digital Media$38.216.2%
Revenue LTMSeptember 30, 2020
$236.4M
99 stations across 37 markets, with approximately 3,200 affiliates
Radio Broadcasting
More than 120 million monthly visits across multiple websites and mobile apps
Digital Media
Three traditional book imprints
Two self-publishing imprints
Book Publishing
Dollars in millions
Radio Broadcasting
$180.576.4%
5
Balance Sheet
$ Millions Sep 30, 2020 Sep 30, 2019
Cash & cash equivalents 19.3 0.0
Receivables 28.2 45.0
FCC Licenses 319.8 340.4
Total Assets 540.6 586.2
Debt (Principal) 233.1 250.2
Total Liabilities 408.7 391.6
Total Stockholders’ equity 131.9 194.7
Select Balance Sheet Terms
LTM 9/20 free cash flow of $4.9 million,or $0.18 per share
Free cash flow yield of 11.8%1
$30M revolving line of credit atLIBOR + 200bps
$136M Federal NOLs at December 31, 2019
1) As of January 14, 2021
6
Radio Broadcasting
Third Largest Radio Broadcaster in Top 25 U.S. Markets
Digital Media Book Publishing
Ownership of Radio Stations Serving the Top 25 Markets 1
1) Source: BIA/Kelsey and company filings. Market ranking excludes Puerto Rico. As of Fall 2020.2) Includes announced acquisitions, divestitures, and exchanges for Salem.
Approximately half of the adults in the U.S. live in the top 25 markets
2
165
116
58
4033 32 28 29 26
92
24 21 2111 7 9 7 6 6 5 1
iHeartMedia Entercom Salem Univision Beasley Cumulus Urban One Cox Alpha Media SpanishBroadcasting
System
Emmis
Number of stations in the top 25 markets Number of top 25 markets represented
7
Geographically Diversified Portfolio
Source: Radio Market Survey Population, Rankings & Information – Fall 2020, published by The Nielsen Company. Market Ranking excludes Puerto Rico.Map excludes markets where all of Salem’s stations are operated under a Local Marketing Agreement.
Radio Broadcasting Digital Media Book Publishing
Top 25 Markets Markets 26-50 Other Markets
Portland, OR
(21) 3 AM, 3 FM
Denver, CO
(18) 3 AM, 1 FM
Colorado Springs, CO
(87) 1 AM, 2 FM
Sacramento, CA
(26) 2 AM, 2 FM
San Francisco, CA
(4.37) 3 AM
Oxnard, CA
(123) 1 FM
Los Angeles, CA
(2) 1 AM, 2 FM
San Bernardino, CA
(25) 1 AM
Honolulu, HI
(64) 3 AM, 4 FM
San Diego, CA
(16) 2 AM
Phoenix, AZ
(13) 3 AM
Pittsburgh, PA
(30) 2 AM, 1 FM
Boston, MA
(10) 2 AM
New York, NY
(1,19) 2 AM
Philadelphia, PA
(9) 2 AM
Washington, DC
(8) 2 AM, 1 FM
Warrenton, VA
1 AM
Greenville, SC
(57) 3 FM
Nashville, TN
(39) 3 FM
Atlanta, GA
(7) 4 AM, 1 FM
Orlando, FL
(28) 2 AM
Seattle, WA
(12) 3 AM
Minneapolis, MN
(15) 4 AM
Chicago, IL
(3) 2 AM
Columbus, OH
(35) 1 AM, 1 FM
Detroit, MI
(14) 2 AM
Cleveland, OH
(34) 2 AM, 1 FM
Dallas, TX
(5) 2 AM, 2 FM
San Antonio, TX
(24) 2 AM
Houston, TX
(6) 1 AM, 1 FM
Little Rock, AR
(90) 1 AM, 3 FM
Tampa, FL
(17) 3 AM
Sarasota, FL
(69) 1 AM
3
6
43
43
11
7
2 3
4
22
4
31
2
5
33
1
3
22
2
3 32
2
4
3
2
8
LTM September 2020 Radio Revenue
48.7%
37.5%
13.8%Programming
Advertising
Other
Radio Broadcasting
Programming time sold to national non-profit ministries and local churches
High renewal rates exceeding 95% annually; 2.0-3.5% rate increases
Our top 10 programmers have averaged 32 years on the air
Programming revenue comprises 49% of radio revenue and 31% of total revenue
Digital Media Book Publishing
Block Programming
Three Strategic Radio Broadcasting Formats
Christian Music –The FISH®
$150.7M
12 Stations17% of radio revenue
Christian Teaching and Talk
News Talk
32 Stations19% of radio revenue
37 Stations + Sirius XM40% of radio revenue
9
Radio Broadcasting Digital Media Book Publishing
Salem Radio Network: Serving 3,200 Affiliates
The Eric Metaxas Show
The Larry Elder Show
The Dennis Prager Show
The Mike Gallagher Show
The Hugh Hewitt Show
174 Affiliates
44 Affiliates
801 Affiliates
1,574 Affiliates
Network Revenue
America First with Dr. Sebastian Gorka
$21.7 $22.5
$27.3
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
LTM9/18
LTM9/19
LTM9/20$ in millions
The Charlie Kirk Show
352410373432428472Number of Affiliates: 97
10
Digital MediaRadio Broadcasting Book Publishing
National Christian Websites
National Conservative Websites
Church E-Commerce Websites
Salem Digital Media
Multifaceted Internet Platform
New Mobile AppsDaily Bible One Place Daily Devotion
King JamesBible
Bible Study Tools
51.8%48.2%
Advertising
Streaming, Subscriptions and Downloads
$38.2M
LTM 9/20
11
Book PublishingRadio Broadcasting Digital Media
Salem Traditional Book Publishing
Publishing Revenue
Christian and Conservative Books
Salem Self-Publishing Services
More than 75 books on the NY Times Best Seller List
50.9%40.9%
8.2%
Traditional
Self-Publishing
Magazine
$17.7M
LTM 9/20
12
Why We Are Different
Unique Ability
to Promote
Across All
Platforms
Radio hosts drive listeners to websites
Radio stations hold book signing events to grow book sales
Pastor events promote digital resources
Websites promote radio programs & books
Cross-selling between radio & digital with larger advertisers
BROADCASTING
DIGITAL
PUBLISHING
13
Where We Are Going
Broadcasting
Salem Surround, a full-service nationwide multimedia advertising
agency, is now in 33 markets
Launched SalemNOW, an on-demand pay-per-view
video platform, in 2020
Formed the Salem Podcast Network in 2021, bringing conservative
content to more listeners and viewers through a podcast platform
Digital Strong diversification of traffic sources positions us for sustainable
growth
Increase traffic to current sites through new mobile apps and cross
promotion from our other media platforms
Acquired 65 mobile apps between 2015 and 2020
Publishing Continue to attract highly sought-after authors
Grow Salem Books imprint by signing high-profile Christian
communicators
14
Key Takeaways
1
2
4
3
We are the market leader in Christian and
conservative media
Utilizing a strong cash-generating radio business to
invest in our growing initiatives and pay down debt
Capitalizing on the advertising market’s
transition to digital and mobile
We have built a robust multimedia
infrastructure that enables us to cross-promote
hundreds of owned media properties
15
Salem Management Team
Edward G. Atsinger III
Chief Executive Officer,
Salem Co-Founder
Stuart W. Epperson
Chairman of the Board,
Salem Co-Founder
David Santrella
President, Broadcast Media
(with Salem since 2001)
David A. R. Evans
President, New Media
(with Salem since 2000)
Evan D. Masyr
Executive Vice President and CFO
(with Salem since 2000)
Christopher J. Henderson
Executive Vice President, Legal and Human
Resources, General Counsel, and Secretary
(with Salem since 2001)
16
Recommended