Salem Media Group Inc. reported net income and revenue below expectations, and also announced a new debt offering.
The Camarillo broadcaster and publisher of Christian and conservative content reported net income of $1.1 million (4 cents a share) for the quarter ended March 31, compared to net income of $400,000 (1 cent) for the same quarter a year ago. Revenue grew less than a percent to $65 million.
Analysts on average expected net income of 8 cents a share on revenue of $66 million, according to Thomson Financial Network.
Separate from its earnings, the company announced plans for a $255 million debt offering due in 2024. The notes will be secured by a first-priority lien on nearly all the assets of Salem and its subsidiaries.
“Salem intends to use the net proceeds of the offering of the notes to repay outstanding borrowings, including accrued and unpaid interest, under its existing senior credit facilities,” the company said in a statement.
Shares of Salem (SALM) closed Monday down 5 cents, or less than a percent, to $7.30 on the Nasdaq.