Salem Media Group, the Camarillo, Calif.-based media company known for its Christian-themed and conservative talk radio stations, will release its Q1 2018 results after the Closing Bell on Wall Street on Tuesday, May 8.
It remains to be seen just where Salem’s stock will be on that date. With Friday’s close, Salem shares are at another five-year low.
On high volume of 188,185 shares, compared to average volume of 60,395 shares, Salem finished Friday’s trading at $3.20, representing a 3.8% dip from Thursday.
It’s the latest dip for a company that has struggled mightily on Wall Street since peaking at $6.40 on Halloween. Since then, investors have been spooked by Salem.
In fact, shares are now lower than a dip seen on Jan. 1, 2016, when investor concern over Salem sent shares to $3.89. However, a $7.77 close was seen just three months later.
There was no apparent reason for the latest sharp dip for Salem. However, investors may still be less-than-pleased with the company following the release of its Q4 2018 results.
The Camarillo, Calif.-based owner of radio stations and a publishing arm saw its net broadcast revenue fall to $50.7 million, from $52.2 million, in Q4. Digital media revenue was also down, leading to a consolidated net revenue loss.
Net income was on the rise, but it is all thanks to the Tax Cuts and Jobs Act. Without a big tax benefit from the legislation passed in fall 2017, Salem would have swung to a net loss of $18,000, from net income of $1.42 million. Instead, a $22.38 tax benefit helped Salem achieve net income of $22.36 million (85 cents per diluted share), up from $2.97 million (11 cents) in Q4 2016.
Meanwhile, investors may be placing extra scrutiny on Salem for its expansion in both Portland, Ore., and Little Rock.
On March 23, 2018, a deal was struck that sees it acquiring KDXE-AM 1380 in North Little Rock, Ark., and its FM translator, K288EZ at 105.5 MHz for $180,000.
As reported by RBR+TVBR in October 2017, Pamplin agreed to sell Class B KPAM-AM 860 — a 50kw daytime/15kw nighttime facility in Portland, Ore. — and Class B KKOV-AM “Sunny 1550” in Vancouver, Wash.,— to Intelli for $1.2 million. That deal saw Salem enter into an LMA agreement allowing it to control KPAM (now branded as “The Answer”). KKOV is now airing Asian-language brokered programming.