Earnings Sentiment

Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.

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Sentiment Distribution

   

Earnings Call Transcript Word Cloud

     

Bullish Statements during Earnings call

Statement
With the cost cuts we've outlined in our last two calls, free cash flow is improving and we remain focused on operating efficiencies
We expect these two provide improved performance over the next couple of years
Expenses increased just 0.2% and adjusted EBITDA improved 9.3%, due to last year's legal settlement accrual of $3.8 million
So we're highly confident that we'll be able to get it rezoned and we're not doing the rezoning the buyer is and so we've signed the contract buyer will do the rezoning in addition to closing we anticipate that it'll close as was mentioned, in December of next year
Evan Masyr And I believe the buyer owns an adjacent parcel, and so we feel very confident that the rezoning will take place
And like Dave mentioned in the prepared remarks we expect that to close kind of late next year so it is a time-consuming process so it's not like something that will happen between now and the end of this year, but we do feel confident about getting that rezoned
Operating expenses on a recurring basis increased 0.2% to $61.0 million, and adjusted EBITDA increased to $2.5 million
However, we expect a return to double-digit growth in all digital, including the National Digital Division in Q4
We've been very busy and have a lot to report
That's fine
As you know, this is an important category for Salem and unique to our business model
Thank you
Thank you
Thanks so much, guys
Broadcast operating expenses increased 2.4% and were up due to severance expense and investments in the Salem News Channel and the Miami market, which was acquired at the beginning of 2023
       

Bearish Statements during earnings call

Statement
Digital revenue growth within the broadcast division has stalled out due to the advertising recession, with revenue down 4.5% in the quarter after only a slight increase of 0.6% in Q2
Revenue from our book publishing decreased 17.5% in the third quarter due to a light publishing schedule
In the broadcast division, revenue declined 4.2% in the quarter, largely due to political comps and the impact of the ad recession
For the third quarter, total revenue decreased 5.0% to $63.5 million, largely due to political comps
Additionally, the softness in the overall economy has caused some declines in our self-publishing business
In the National Digital Division revenue declined 2.2% in the third quarter
Additionally, the losses from two startup businesses, Salem News Channel and our Cluster in Miami, have negatively impacted our financial results and therefore leverage
Spot advertising revenue continues to be the biggest reason for the overall decline in broadcast revenue
As you have heard from many of our peers, our industry continues to face challenges with the economy and elevated interest rates
Network revenue was down 10.1%
For the third quarter, total revenue declined 5.0%, though only 3.9%, excluding political
On a same station basis, net broadcast revenue decreased 4.9% to $48.6 million and SOI decreased 28.2% to $7.3 million
National spot was down 17.9% and local spot was down 6.6%
Compared to last year, net broadcast revenue decreased 4.2% to $49 million, and broadcast operating expenses increased 2.4% to $42.2 million, resulting in station operating income of $6.8 million, a decrease of 31.8%
Overall, total spot advertising revenue was down 9.6% or $1.3 million
Expenses in the publishing business were down 9.2%, due primarily to variable costs
Looking forward for the fourth quarter of 2023, Salem is projecting total revenue to decline between 6% and 8% from fourth quarter ‘22 total revenue of $68.8 million
Now, this guidance assumes the closing of the pending sale of Salem Church products in the fourth quarter, excluding the impact of the 2022 political revenue and the financial results from the pending asset sale, we would be projecting total revenue to decline between 2% and 4%
The leverage ratio at September 30th was 11.0, clearly too high
I mean, so we're still forbearing at this point, though we're still in default
   

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