SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2022

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 results of operations of TV One and CLEO TV. 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, 2022 and 2021, is presented in the following tables:

	Three Months Ended
	September 30,
	2022		2021
	(Unaudited)
	(In thousands)
Net Revenue:
Radio Broadcasting	$	40,407	$	38,541
Reach Media		10,071		9,939
Digital		20,986		14,981
Cable Television		50,784		48,846
Corporate/Eliminations*		(845)		(844)
Consolidated	$	121,403	$	111,463
Operating Expenses (including stock-based compensation and excluding depreciation and amortization and impairment of long-lived assets):
Radio Broadcasting	$	27,647	$	25,356
Reach Media		6,974		6,281
Digital		13,408		9,596
Cable Television		26,130		24,650
Corporate/Eliminations		11,315		8,769
Consolidated	$	85,474	$	74,652
Depreciation and Amortization:
Radio Broadcasting	$	837	$	814
Reach Media		50		49
Digital		329		307
Cable Television		955		932
Corporate/Eliminations		334		234
Consolidated	$	2,505	$	2,336
Impairment of Long-Lived Assets:
Radio Broadcasting	$	14,450	$	—
Reach Media		—		—
Digital		—		—
Cable Television		—		—
Corporate/Eliminations		—		—
Consolidated	$	14,450	$	—
Operating income (loss):
Radio Broadcasting	$	(2,527)	$	12,371
Reach Media		3,047		3,609
Digital		7,249		5,078
Cable Television		23,699		23,264
Corporate/Eliminations		(12,494)		(9,847)
Consolidated	$	18,974	$	34,475
*  Intercompany revenue included in net revenue above is as follows:
Radio Broadcasting	$	(845)	$	(844)

Capital expenditures by segment are as follows:
Radio Broadcasting	$	1,480	$	655
Reach Media		17		68
Digital		320		342
Cable Television		1		68
Corporate/Eliminations		402		595
Consolidated	$	2,220	$	1,728

	Nine Months Ended
	September 30,
	2022		2021
	(Unaudited)
	(In thousands)
Net Revenue:
Radio Broadcasting	$	109,091	$	101,793
Reach Media		31,194		27,169
Digital		54,353		40,466
Cable Television		160,668		143,549
Corporate/Eliminations*		(2,744)		(2,481)
Consolidated	$	352,562	$	310,496
Operating Expenses (including stock-based compensation and excluding depreciation and amortization and impairment of long-lived assets):
Radio Broadcasting	$	76,803	$	71,054
Reach Media		19,449		17,457
Digital		34,489		26,449
Cable Television		77,829		69,721
Corporate/Eliminations		25,871		22,738
Consolidated	$	234,441	$	207,419
Depreciation and Amortization:
Radio Broadcasting	$	2,477	$	2,335
Reach Media		143		160
Digital		995		945
Cable Television		2,853		2,799
Corporate/Eliminations		923		686
Consolidated	$	7,391	$	6,925
Impairment of Long-Lived Assets:
Radio Broadcasting	$	31,383	$	—
Reach Media		—		—
Digital		—		—
Cable Television		—		—
Corporate/Eliminations		—		—
Consolidated	$	31,383	$	—
Operating income (loss):
Radio Broadcasting	$	(1,572)	$	28,404
Reach Media		11,602		9,552
Digital		18,869		13,072
Cable Television		79,986		71,029
Corporate/Eliminations		(29,538)		(25,905)
Consolidated	$	79,347	$	96,152
*  Intercompany revenue included in net revenue above is as follows:
Radio Broadcasting	$	(2,744)	$	(2,481)

Capital expenditures by segment are as follows:
Radio Broadcasting	$	2,736	$	1,882
Reach Media		191		100
Digital		955		914
Cable Television		617		250
Corporate/Eliminations		1,592		1,036
Consolidated	$	6,091	$	4,182

	As of
	September 30,		December 31,
	2022		2021
	(Unaudited)
	(In thousands)
Total Assets:
Radio Broadcasting	$	614,962	$	627,948
Reach Media		42,165		33,451
Digital		33,134		32,915
Cable Television		410,861		367,896
Corporate/Eliminations		149,574		198,898
Consolidated	$	1,250,696	$	1,261,108