Salem Media Group reported first quarter 2017 net income of $1.1 million, or 4 cents per share, and announced plans for a private offering of $225 million in senior secured notes May 8.
Total revenues and operating expenses both edged up slightly from the previous first quarter for the Camarillo-based Christian and conservative media company, reaching $65 million and $60.2 million, respectively. Publishing revenue drove the quarter, increasing more than 34 percent to $6.5 million, while digital and broadcast revenues both declined.
The company made several acquisitions during the quarter, including a website and construction permits for FM translators in Oregon, Arizona and Washington. After operating results for four print publications fell below expectations, the company decided to end publishing in May, according to a news release.
Salem had $83,000 in cash on hand for the quarter ended March 31, and $39.4 million in current liabilities, with nearly 26.3 million diluted weighted average shares outstanding.
The company stated expectations of $65.7 million to $67.1 million in revenues, a 1-3 percent decline from the same period last year, and some operating expenses should also decrease.
Salem announced that it plans to offer $225 million in secure notes due in 2024, secured by a lien on its assets. It intends to use proceeds to repay current debt, and the notes are being offered only to qualified institutional buyers, according to a May 8 news release.
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