SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2021

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 six months ended June 30, 2021 and 2020, is presented in the following tables:

	Three Months Ended
	June 30,
	2021		2020
	(Unaudited)
	(In thousands)
Net Revenue:
Radio Broadcasting	$	35,465	$	20,505
Reach Media		9,414		6,268
Digital		15,129		6,104
Cable Television		48,461		43,761
Corporate/Eliminations*		(876)		(630)
Consolidated	$	107,593	$	76,008
Operating Expenses (including stock-based compensation and excluding depreciation and amortization and impairment of long-lived assets):
Radio Broadcasting	$	22,369	$	20,614
Reach Media		6,002		4,941
Digital		8,800		5,723
Cable Television		23,550		16,953
Corporate/Eliminations		6,627		5,013
Consolidated	$	67,348	$	53,244
Depreciation and Amortization:
Radio Broadcasting	$	792	$	766
Reach Media		53		60
Digital		315		277
Cable Television		937		940
Corporate/Eliminations		228		339
Consolidated	$	2,325	$	2,382
Operating income (loss):
Radio Broadcasting	$	12,304	$	(875)
Reach Media		3,359		1,267
Digital		6,014		104
Cable Television		23,974		25,868
Corporate/Eliminations		(7,731)		(5,982)
Consolidated	$	37,920	$	20,382

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

Radio Broadcasting $ (876) $ (630)

Capital expenditures by segment are as follows:

Radio Broadcasting	$	966	$	557
Reach Media		31		9
Digital		246		239
Cable Television		144		23
Corporate/Eliminations		263		392
Consolidated	$	1,650	$	1,220

	Six Months Ended
	June 30,
	2021		2020
	(Unaudited)
	(In thousands)
Net Revenue:
Radio Broadcasting	$	63,253	$	55,421
Reach Media		17,230		12,958
Digital		25,484		12,393
Cable Television		94,703		91,257
Corporate/Eliminations*		(1,637)		(1,146)
Consolidated	$	199,033	$	170,883
Operating Expenses (including stock-based compensation and excluding depreciation and amortization and impairment of long-lived assets):
Radio Broadcasting	$	45,698	$	47,006
Reach Media		11,176		10,836
Digital		16,853		12,918
Cable Television		45,071		37,352
Corporate/Eliminations		13,969		11,096
Consolidated	$	132,767	$	119,208
Depreciation and Amortization:
Radio Broadcasting	$	1,522	$	1,506
Reach Media		111		119
Digital		638		765
Cable Television		1,866		1,883
Corporate/Eliminations		452		657
Consolidated	$	4,589	$	4,930
Impairment of Long-Lived Assets:
Radio Broadcasting	$	—	$	53,650
Reach Media		—		—
Digital		—		—
Cable Television		—		—
Corporate/Eliminations		—		—
Consolidated	$	—	$	53,650
Operating income (loss):
Radio Broadcasting	$	16,033	$	(46,741)
Reach Media		5,943		2,003
Digital		7,993		(1,290)
Cable Television		47,766		52,022
Corporate/Eliminations		(16,058)		(12,899)
Consolidated	$	61,677	$	(6,905)

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

Radio Broadcasting $ (1,637) $ (1,146)

Capital expenditures by segment are as follows:

Radio Broadcasting	$	1,227	$	1,520
Reach Media		32		66
Digital		572		436
Cable Television		182		64
Corporate/Eliminations		441		564
Consolidated	$	2,454	$	2,650

	June 30, 2021		December 31, 2020
	(Unaudited)
	(In thousands)
Total Assets:
Radio Broadcasting	$	625,205	$	630,174
Reach Media		43,532		38,235
Digital		24,491		23,168
Cable Television		383,036		374,046
Corporate/Eliminations		163,278		129,864
Consolidated	$	1,239,542	$	1,195,487