SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2018

Segment Reporting Disclosure [Text Block]

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. Effective January 1, 2017, the Company changed its reportable segment disclosures. Along with the results of Interactive One, all digital components from our reportable segments are a part of a newly formed reportable segment called “Digital”. This new reportable segment better reflects the manner in which we manage our business and better reflects our operational structure.

The radio broadcasting segment consists of all broadcast results of operations. The Reach Media segment consists of the results of operations for the Tom Joyner Morning Show and related activities and operations of other 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 TV One’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 months ended June 30, 2018 and 2017, is presented in the following tables:

	Three Months Ended June 30,
	2018			2017
	(Unaudited)
	(In thousands)
Net Revenue:
Radio Broadcasting	$	46,452		$	48,161
Reach Media		16,380			17,528
Digital		6,559			6,740
Cable Television		46,828			45,369
Corporate/Eliminations*		(1,013	)		(160	)
Consolidated	$	115,206		$	117,638

Operating Expenses (including stock-based compensation and excluding depreciation and amortization and impairment of long-lived assets):
Radio Broadcasting	$	28,975		$	29,177
Reach Media		14,458			15,860
Digital		9,023			8,217
Cable Television		22,610			24,118
Corporate/Eliminations		7,079			6,970
Consolidated	$	82,145		$	84,342

Depreciation and Amortization:
Radio Broadcasting	$	848		$	939
Reach Media		63			52
Digital		477			463
Cable Television		6,556			6,568
Corporate/Eliminations		304			410
Consolidated	$	8,248		$	8,432

Impairment of Long-Lived Assets:
Radio Broadcasting	$	—		$	12,756
Reach Media		—			—
Digital		—			—
Cable Television		—			—
Corporate/Eliminations		—			—
Consolidated	$	—		$	12,756

Operating income (loss):
Radio Broadcasting	$	16,629		$	5,289
Reach Media		1,859			1,616
Digital		(2,941	)		(1,940	)
Cable Television		17,662			14,683
Corporate/Eliminations		(8,396	)		(7,540	)
Consolidated	$	24,813		$	12,108

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

Radio Broadcasting	$	(1,013	)	$	(160	)

Capital expenditures by segment are as follows:

Radio Broadcasting	$	152		$	645
Reach Media		12			22
Digital		380			359
Cable Television		57			107
Corporate/Eliminations		563			1,156
Consolidated	$	1,164		$	2,289

	Six Months Ended June 30,
	2018			2017
	(Unaudited)
	(In thousands)
Net Revenue:
Radio Broadcasting	$	85,965		$	87,898
Reach Media		22,899			25,191
Digital		14,705			12,246
Cable Television		93,014			93,924
Corporate/Eliminations*		(1,756	)		(332	)
Consolidated	$	214,827		$	218,927

Operating Expenses (including stock-based compensation and excluding depreciation and amortization and impairment of long-lived assets):
Radio Broadcasting	$	56,216		$	55,494
Reach Media		20,959			23,774
Digital		19,467			14,862
Cable Television		49,276			53,305
Corporate/Eliminations		13,689			13,431
Consolidated	$	159,607		$	160,866

Depreciation and Amortization:
Radio Broadcasting	$	1,718		$	1,896
Reach Media		126			106
Digital		953			804
Cable Television		13,113			13,129
Corporate/Eliminations		626			809
Consolidated	$	16,536		$	16,744

Impairment of Long-Lived Assets:
Radio Broadcasting	$	6,556		$	12,756
Reach Media		—			—
Digital		—			—
Cable Television		—			—
Corporate/Eliminations		—			—
Consolidated	$	6,556		$	12,756

Operating income (loss):
Radio Broadcasting	$	21,475		$	17,752
Reach Media		1,814			1,311
Digital		(5,715	)		(3,420	)
Cable Television		30,625			27,490
Corporate/Eliminations		(16,071	)		(14,572	)
Consolidated	$	32,128		$	28,561

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

Radio Broadcasting	$	(1,756	)	$	(332	)

Capital expenditures by segment are as follows:

Radio Broadcasting	$	569		$	1,670
Reach Media		46			68
Digital		760			545
Cable Television		99			203
Corporate/Eliminations		604			1,262
Consolidated	$	2,078		$	3,748

	June 30, 2018		December 31, 2017
	(Unaudited)
	(In thousands)
Total Assets:
Radio Broadcasting	$	735,797	$	751,664
Reach Media		37,152		39,928
Digital		23,062		28,407
Cable Television		427,071		435,031
Corporate/Eliminations		67,334		61,725
Consolidated	$	1,290,416	$	1,316,755