Salem Communications’ Q2 results reported total revenue down 2.2% to $57.5 million from $58.8 million in Q2 2007. Net income increased 20.5% to $3.5 million, or $0.15 net income per diluted share, from $2.9 million, or $0.12 net income per diluted share. Operating expenses decreased 1.6% to $47.2 million from $47.9 million; Operating income decreased 5.0% to $10.3 million from $10.9 million; EBITDA increased 0.4% to $14.8 million from $14.7 million. Net broadcast revenue decreased 5.1% to $49.9 million from $52.6 million.
These results include the reclassification of the operations of their Columbus, Ohio and Milwaukee stations to discontinued operations. These stations had net broadcast revenue of about $1.0 million and generated a profit of $0.2 million for Q2 ‘07 and net broadcast revenue of some $0.5 million and generated a profit of $0.1 million for the quarter.
Thee results also reflect the reclassification of the operations of CCM Magazine to discontinued operations. The magazine had non-broadcast revenue of $0.2 million and generated a loss of $0.1 million for Q2 2007 and net broadcast revenue of approximately $0.1 million and generated no profit for the quarter.
For Q3, Salem is projecting total revenue to decrease in the low-single digit range over Q3 2007 total revenue of $56.9 million. Salem is also projecting operating expenses to be flat as compared to Q3 ‘07 operating expenses of $46.6 million.