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    Michael Kupinski

    Research Analyst at NOBLE Capital Markets

    Michael Kupinski's questions to SALEM MEDIA GROUP, INC. /DE/ (SALM) leadership

    Michael Kupinski's questions to SALEM MEDIA GROUP, INC. /DE/ (SALM) leadership • Q2 2023

    Question

    Michael Kupinski from NOBLE Capital Markets inquired about the significant expense growth since 2021 despite flat revenues, the drivers behind publishing expenses, the 2024 book title outlook, investments in a new film, the current broadcast advertising environment, and the timing of recently announced cost savings.

    Answer

    CEO David Santrella attributed the expense increase to strategic investments in in-house digital personnel and services. He clarified that a Q2 publishing expense increase was due to a one-time inventory reserve adjustment and noted major book releases are slated for Q4. Santrella confirmed an investment in a new Dinesh D'Souza film and described the Q3 broadcast ad market as sluggish. Regarding the $10 million in savings, Santrella and CFO Evan Masyr explained that the impact would begin in Q3 and be fully realized in Q4.

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    Michael Kupinski's questions to SALEM MEDIA GROUP, INC. /DE/ (SALM) leadership • Q1 2023

    Question

    Michael Kupinski of NOBLE Capital Markets asked for clarification on Q1 spot revenue, the outlook for the new Miami stations, drivers for expense increases and Q2 revenue guidance, the advertising climate, and the timing of cost savings.

    Answer

    CEO David Santrella clarified that national spot revenue grew 20.7% while local spot fell 8.3%. He expressed cautious optimism for faster-than-projected profitability in Miami. Santrella and COO David Evans explained that 2023 is an investment year for digital initiatives, with expense increases expected to cycle in Q1 2024. Evans noted that the $5 million in annual savings from recent layoffs will be realized evenly over the next four quarters. Both executives described the ad environment as cautious due to economic uncertainty.

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    Michael Kupinski's questions to ESPORTS ENTERTAINMENT GROUP (GMBL) leadership

    Michael Kupinski's questions to ESPORTS ENTERTAINMENT GROUP (GMBL) leadership • Q1 2022

    Question

    Michael Kupinski of NOBLE Capital Markets inquired about the drivers behind Q1 gross margins, the specific revenue contribution from the newly acquired Bethard, and the expected capital expenditure for new Helix centers. He also asked for an updated timeline on generating revenue from New Jersey and the company's current monthly cash burn rate.

    Answer

    CFO Dan Marks stated that gross margins, which benefited from the Bethard acquisition, are expected to remain in the high-50% to 60% range. CEO Grant Johnson detailed that CapEx for Helix centers ranges from $500,000 to $1.5 million with an 18-month ROI target. Johnson also projected that the New Jersey esports betting platform would be live before the end of the calendar year, with Ohio and Ontario as the next likely expansion targets. Marks confirmed the monthly cash burn is just under $1 million.

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