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Salem Communications (ticker: SALM) reported results on May 5, 2005 for
the first quarter 2005.  Below are some highlights.

Results 1Q05 vs. 1Q04:

  • Reported EPS: $0.09 vs. $0.05 (+80%)
  • Consensus EPS was $0.08
  • Revenue: $50.2M vs. $45.1M (+11%)
  • Consensus revenue was $49.3M
  • Operating income: $9.0M vs. $7.8M (+15%)
  • Operating margin: 17.9% vs. 17.2% (+70bps)
  • Net income: $2.4M vs. $1.2M (+92%)
  • Net margin: 4.8% vs. 2.8% (+200bps)
  • Station operating income: $17.3M vs. $15.6M (+11%)
  • Station operating margin: 36.2% vs. 36.2% (0bps)
  • Cash: $5.9M vs. $11.0M (-47%)
  • Debt: $304.194M vs. $281.024M (+8%)

Revenues, by segment 1Q05 vs. 1Q04:

  • Net broadcasting revenues: $47.8M vs. $43.2M (+11%)
  • Other media revenue: $2.4M vs. $1.9M (+25%)

2Q05 Guidance:

  • Revenues: $50.9M - $51.4M
  • EPS: $0.11 - $0.13
  • Station Operating Income: $18.5M - $19.0M

2005 Guidance:

  • Corporate expenses: $20M
  • Capex: $13M

Quick comments:

  • Q1 results are in-line with SALM's recently revised guidance
  • Share repurchase: The company hasn't repurchased any shares in its $25 million stock repurchase program which was approved in November 2004
  • Same-station net broadcasting growth: +11%; same-station operating income growth: +17.5%
  • Fish stations (Contemporary Christian format) same-station revenue growth: +15.7%
  • Christian Teaching & Talk same-station revenue growth: +6.5%
  • New Talk same-station net broadcast growth: +17%
  • Joe Davis promoted to Chief Operating Officer during Q1

Salm_3

Source: Salem Communications (SALM) reports a strong quarter