Salem Media Group, Inc. (NASDAQ:SALM) Q2 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 05:00 pm ET

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Salem Media Group, Inc. (NASDAQ:SALM) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, everyone, and welcome to the Salem Media Group, Inc. Second Quarter 2020 Earnings Call. Today's conference is being recorded. At this time, I would like to turn the call over to Mr. Evan Masyr, Executive Vice President and Chief Financial Officer. Please go ahead, sir.

Executive
Evan D. Masyr

Welcome and thank you all for joining us for today on Salem Media Group's second quarter 2020 earnings call. As a reminder, if you get disconnected at any time, you can dial back in or listen from our website at www.salemmedia.com.

Joining me on the call today are Edward Atsinger, Chief Executive Officer; David Santrella, President of Broadcast Media and David Evans, President of Interactive and Publishing. We'll begin in just a moment with our prepared remarks. And once we are done, the conference call operator will come back on the line to instruct you on how to submit questions.

Given the current circumstances, we are all working remotely and that may cause some extra coordination during the question-and-answer portion of the call. Please be advised that statements made on this call that relate to future plans, events, financial results, prospects or performance are forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on currently available information. Actual results may differ materially from those anticipated, and reported results should not be considered an indication of future performance. We do not intend and undertake no obligation to update our forward-looking statements, including forecasts of future performance, the potential for growth of existing markets, the opening of new markets or the potential growth from future acquisitions.

This conference call also contains non-GAAP financial measures within the meaning of Regulation G, specifically station operating income or SOI, EBITDA, adjusted EBITDA and adjusted free cash flow. In conformity with Regulation G, the information required to accompany the disclosure of non-GAAP financial measures is available on the Investor Relations portion of our website at www.salemmedia.com.

And with that, I would now like to turn the call over to Edward Atsinger. Ed?

Executive
Edward G. Atsinger

Thank you, Evan, and thanks to all of you for joining us today. The second quarter was certainly a difficult quarter, and I will begin my prepared remarks focusing on the financial results and the challenges we face due to the coronavirus pandemic, and then I'll turn the call back to Evan to provide more detailed information on Q2. For the second quarter of 2020, total revenue declined 18.3%. Expenses were down 8.2%, which resulted in a 72.4% decline in adjusted EBITDA. On our last call, we outlined a number of steps that have been taken to reduce expenses in the light of the current economic environment, including -- which included layoffs, across the Board salary cuts and the elimination of the 401k match. Beginning in May, these steps resulted in a monthly expense savings of approximately $850,000.

Let's take a look at the results by division to get a little better understanding of our performance. For the second