SALM - Salem Media (SALM) - A Blueprint For A Smooth Succession
Senior management changes. The company announced changes to its management team and Board of Directors, which will go into effect on January 1, 2022. Edward Atsinger III will be stepping down as CEO and will become an Executive Chairman of the company’s Board of Directors, while Stuart Epperson, Sr. will be stepping down as Chairman of the Board. Stuart Epperson, Jr. will fill the vacancy on the board left by Stuart Epperson, Sr. David Santrella, who is currently the company’s President of Broadcast Media, will assume the role of CEO and David Evans, current President of Digital Media and Publishing, will become COO.A strong succession plan. Both Mr. Santrella and Mr. Evans have over a decade of experience at the company and bring deep understanding of Salem’s mission to their new roles. We believe they are logical choices to lead the operations of the company going forward. Moreover, they will have the invaluable resource of Edward Atsinger, who will be staying on as an Executive Chairman, which offers a smooth succession plan.Retaining important voices. Two longstanding leaders of Salem will continue to have an impact, namely, Stuart Epperson, Sr. and Edward Atsinger III. Mr. Epperson will serve as a non-voting member of the board and will be able to help guide the company forward while offering decades of experience, having served as the Chairman of the Board since Salem’s founding. Mr. Atsinger will also continue to have a meaningful impact as Executive Chairman. The newly created position will allow for him to carry out several of his current duties as CEO, specifically those that relate to M&A, external relationships, government affairs, and leadership development. We view the continued presence of Mr. Epperson and Mr. Atsinger very favorably as it should allow for a smooth transition of leadership over the coming years.Maintaining outperform rating. Near current levels, SALM shares trade at 6.5 times enterprise value to our 2022 adj. EBITDA forecast. We are reiterating out outperform rating with a price target of $5.25, which reflects a target EV/2022 EBITDA multiple of 8.2 times. Read More >>