SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2020

SEGMENT INFORMATION

SEGMENT INFORMATION

7.    SEGMENT INFORMATION:

The Company has four reportable segments: (i) radio broadcasting; (ii) Reach Media; (iii) digital; and (iv) cable television. These segments operate in the United States and are consistently aligned with the Company’s management of its businesses and its financial reporting structure.

The radio broadcasting segment consists of all broadcast results of operations. The Reach Media segment consists of the results of operations for the related activities and operations of our syndicated shows. The digital segment includes the results of our online business, including the operations of Interactive One, as well as the digital components of our other reportable segments. The cable television segment consists of the Company’s cable TV operation, including TV One’s and CLEO TV’s results of operations. Corporate/Eliminations represents financial activity associated with our corporate staff and offices and intercompany activity among the four segments.

Operating loss or income represents total revenues less operating expenses, depreciation and amortization, and impairment of long-lived assets. Intercompany revenue earned and expenses charged between segments are recorded at estimated fair value and eliminated in consolidation.

The accounting policies described in the summary of significant accounting policies in Note 1 – Organization and Summary of Significant Accounting Policies are applied consistently across the segments.

Detailed segment data for the three and nine months ended September 30, 2020 and 2019, is presented in the following tables:

	Three Months Ended
	September 30,
	2020		2019
	(Unaudited)
	(In thousands)
Net Revenue:
Radio Broadcasting	$	31,645	$	46,467
Reach Media		7,751		10,917
Digital		8,451		8,170
Cable Television		44,746		45,981
Corporate/Eliminations*		(681)		(480)
Consolidated	$	91,912	$	111,055
Operating Expenses (including stock-based compensation and excluding depreciation and amortization and impairment of long-lived assets):
Radio Broadcasting	$	20,368	$	29,776
Reach Media		4,632		9,011
Digital		6,860		7,530
Cable Television		18,420		23,921
Corporate/Eliminations		6,125		7,107
Consolidated	$	56,405	$	77,345
Depreciation and Amortization:
Radio Broadcasting	$	759	$	791
Reach Media		59		60
Digital		483		474
Cable Television		934		953
Corporate/Eliminations		254		315
Consolidated	$	2,489	$	2,593
Impairment of Long-Lived Assets:
Radio Broadcasting	$	29,050	$	—
Reach Media		—		—
Digital		—		—
Cable Television		—		—
Corporate/Eliminations		—		—
Consolidated	$	29,050	$	—
Operating income:
Radio Broadcasting	$	(18,532)	$	15,900
Reach Media		3,060		1,846
Digital		1,108		166
Cable Television		25,392		21,107
Corporate/Eliminations		(7,060)		(7,902)
Consolidated	$	3,968	$	31,117

*  Intercompany revenue included in net revenue above is as follows:

Radio Broadcasting $ (681) $ (480)

Capital expenditures by segment are as follows:

Radio Broadcasting	$	306	$	1,406
Reach Media		9		31
Digital		180		348
Cable Television		8		15
Corporate/Eliminations		23		37
Consolidated	$	526	$	1,837

	Nine Months Ended
	September 30,
	2020		2019
	(Unaudited)
	(In thousands)
Net Revenue:
Radio Broadcasting	$	87,066	$	132,528
Reach Media		20,709		36,660
Digital		20,844		23,280
Cable Television		136,003		140,234
Corporate/Eliminations*		(1,827)		(1,627)
Consolidated	$	262,795	$	331,075
Operating Expenses (including stock-based compensation and excluding depreciation and amortization and impairment of long-lived assets):
Radio Broadcasting	$	67,373	$	89,142
Reach Media		15,468		30,955
Digital		19,778		22,310
Cable Television		55,772		75,284
Corporate/Eliminations		17,222		20,099
Consolidated	$	175,613	$	237,790
Depreciation and Amortization:
Radio Broadcasting	$	2,266	$	2,510
Reach Media		178		178
Digital		1,248		1,395
Cable Television		2,817		9,430
Corporate/Eliminations		910		938
Consolidated	$	7,419	$	14,451
Impairment of Long-Lived Assets:
Radio Broadcasting	$	82,700	$	3,800
Reach Media		—		—
Digital		—		—
Cable Television		—		—
Corporate/Eliminations		—		—
Consolidated	$	82,700	$	3,800
Operating (loss) income:
Radio Broadcasting	$	(65,273)	$	37,076
Reach Media		5,063		5,527
Digital		(182)		(425)
Cable Television		77,414		55,520
Corporate/Eliminations		(19,959)		(22,664)
Consolidated	$	(2,937)	$	75,034

*  Intercompany revenue included in net revenue above is as follows:

Radio Broadcasting $ (1,827) $ (1,627)

Capital expenditures by segment are as follows:

Radio Broadcasting	$	1,826	$	2,269
Reach Media		75		97
Digital		616		1,066
Cable Television		72		173
Corporate/Eliminations		587		342
Consolidated	$	3,176	$	3,947

	September 30, 2020		December 31, 2019
	(Unaudited)
	(In thousands)
Total Assets:
Radio Broadcasting	$	628,195	$	721,295
Reach Media		44,829		41,892
Digital		19,553		22,223
Cable Television		383,782		388,465
Corporate/Eliminations		134,178		76,044
Consolidated	$	1,210,537	$	1,249,919