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Technology Stocks : Salem Communications (SALM) -- Ignore unavailable to you. Want to Upgrade?

To: Elmer who wrote (6)	9/29/2003 8:29:03 AM
From: Elmer	Respond to of 7

Salem misses in third quarter. CAMARILLO, Calif. (Dow Jones)--Salem Communications Corp. lowered its third-quarter revenue and station operating income forecasts, while also closing on a new $150 million credit facility. In a press release Monday, the religion-focused broadcaster said it now expects station operating income of between $14.9 million to $15.2 million, down from $15 million to $15.5 million. ADVERTISEMENT The company also lowered its revenue guidance range to $42.5 million to $42.8 million from a previous range of $42.8 million to $43.3 million. At the end of the second quarter, the company said it expected earnings of 6 cents to 7 cents a share for the third quarter. That outlook remains intact. Wall Street expects third-quarter earnings of 7 cents a share and revenue of about $45.2 million, according to a Thomson First Call (News - Websites) consensus estimate. A year ago, the company reported $38.7 million in third-quarter revenue and net income of $18.1 million, or 77 cents a share. Salem didn't report station operating income, although it reported third-quarter earnings before interest, taxes, depreciation and amortization of $10.3 million. Despite the downward revisions, the company touted its year-over-year revenue growth. Salem attributed that growth to its block programming business and its portfolio of start-up and development-stage stations. Salem said that the block programming and startup portfolio insulates it from economic fluctuations of the greater radio industry. In a separate release, Salem said it has "amended and restated" its $150 million credit facility with a consortium of lenders. The company, in deciding on the new terms of its facility, canceled a contemplated debt offering, which will result in a $700,000 one-time expense. The company didn't specify when this expense would be booked. The facility consists of a $75 million term loan which matures in September 2009. The other half of the facility is a $75 million revolver with a March 2010 maturation date. The facility has a total debt leverage of 7.35 times. BNY Capital Markets is acting as the lending group's administrative agent. The consortium of lenders includes General Electric Co. (NYSE:GE - News)'s GE Capital, SunTrust Banks Inc. (NYSE:STI - News)'s SunTrust Bank, FleetBoston Financial Corp. (NYSE:FBF - News)'s Fleet National Bank, ING Groep NV's (ING) ING Capital, Wells Fargo & Co. (NYSE:WFC - News)'s Wells Fargo Foothill, Credit Lyonnais, Credit Suisse Group's (NYSE:CSR - News) Credit Suisse First Boston and UBS AG (UBS). As of the end of the second quarter, the company reported $350.9 million in long-term debt and capital lease obligations. -Thomas Derpinghaus; Dow Jones Newswires; 201-938-5400.