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Segment Information
9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Segment Information

5. SEGMENT INFORMATION

With the sale of the Company’s EGP business during the second quarter of 2024, the Company identifies itself and operates as a media and advertising technology company. Management evaluated the Company’s business under the guidance in Accounting Standards Codification Topic 280, “Segment Reporting”. As a result, effective July 1, 2024, the Company has realigned its operating segments into two segments – media and advertising technology & services – consistent with the Company’s current operational and management structure. The Company’s media segment consists of sales of advertising through various media, including television, radio and digital. The Company owns and/or operates 49 primary television stations and 44 radio stations (37 FM and 7 AM), reaching and engaging U.S. Latinos. The Company’s advertising technology & services segment consists of programmatic ad services through Smadex, the Company’s demand side programmatic ad platform, and Adwake, which includes BCNMonetize, the Company’s mobile growth solutions business. The Company’s reportable segments are the same as its operating segments. Prior periods have been recast to conform to this presentation throughout this report.

The Company’s segments results reflect information presented on the same basis that is used for internal management reporting and it is also how the chief operating decision maker, who is the Company's CEO, evaluates the business.

Segment operating profit (loss) is defined as operating profit (loss) before corporate expenses, change in fair value of contingent consideration, impairment charge, other operating (gain) loss, and foreign currency (gain) loss. The Company generated 24% and 26% of its revenue from continuing operations outside the United States during the three-month periods ended September 30, 2024 and 2023, respectively. The Company generated 25% and 29% of its revenue from continuing operations outside the United States during the nine-month periods ended September 30, 2024 and 2023, respectively.

The accounting policies applied to determine the segment information are generally the same as those described in the summary of significant accounting policies (see Note 2). The Company evaluates the performance of its operating segments based on separate financial data for each operating segment as provided below (in thousands):

 

 

 

Three-Month Period

 

 

 

 

 

Nine-Month Period

 

 

 

 

 

 

Ended September 30,

 

 

%

 

 

Ended September 30,

 

 

%

 

 

 

2024

 

 

2023

 

 

Change

 

 

2024

 

 

2023

 

 

Change

 

Net revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Media

 

$

59,802

 

 

$

48,746

 

 

 

23

%

 

$

154,801

 

 

$

144,614

 

 

 

7

%

Advertising Technology & Services

 

 

37,354

 

 

 

28,674

 

 

 

30

%

 

 

103,185

 

 

 

74,173

 

 

 

39

%

Consolidated

 

 

97,156

 

 

 

77,420

 

 

 

25

%

 

 

257,986

 

 

 

218,787

 

 

 

18

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Media

 

 

4,881

 

 

 

2,840

 

 

 

72

%

 

 

11,888

 

 

 

7,661

 

 

 

55

%

Advertising Technology & Services

 

 

21,920

 

 

 

18,553

 

 

 

18

%

 

 

61,995

 

 

 

50,249

 

 

 

23

%

Consolidated

 

 

26,801

 

 

 

21,393

 

 

 

25

%

 

 

73,883

 

 

 

57,910

 

 

 

28

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Media

 

 

29,193

 

 

 

24,110

 

 

 

21

%

 

 

82,405

 

 

 

72,004

 

 

 

14

%

Advertising Technology & Services

 

 

6,424

 

 

 

4,592

 

 

 

40

%

 

 

16,769

 

 

 

12,156

 

 

 

38

%

Consolidated

 

 

35,617

 

 

 

28,702

 

 

 

24

%

 

 

99,174

 

 

 

84,160

 

 

 

18

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Media

 

 

10,860

 

 

 

8,677

 

 

 

25

%

 

 

30,600

 

 

 

27,039

 

 

 

13

%

Advertising Technology & Services

 

 

6,252

 

 

 

3,269

 

 

 

91

%

 

 

15,209

 

 

 

10,324

 

 

 

47

%

Consolidated

 

 

17,112

 

 

 

11,946

 

 

 

43

%

 

 

45,809

 

 

 

37,363

 

 

 

23

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Media

 

 

3,165

 

 

 

3,288

 

 

 

(4

)%

 

 

9,756

 

 

 

8,962

 

 

 

9

%

Advertising Technology & Services

 

 

717

 

 

 

1,445

 

 

 

(50

)%

 

 

3,293

 

 

 

2,986

 

 

 

10

%

Consolidated

 

 

3,882

 

 

 

4,733

 

 

 

(18

)%

 

 

13,049

 

 

 

11,948

 

 

 

9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment operating profit (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Media

 

 

11,703

 

 

 

9,831

 

 

 

19

%

 

 

20,152

 

 

 

28,948

 

 

 

(30

)%

Advertising Technology & Services

 

 

2,041

 

 

 

815

 

 

 

150

%

 

 

5,919

 

 

 

(1,542

)

 

*

 

Consolidated

 

 

13,744

 

 

 

10,646

 

 

 

29

%

 

 

26,071

 

 

 

27,406

 

 

 

(5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate expenses

 

 

6,930

 

 

 

13,292

 

 

 

(48

)%

 

 

29,989

 

 

 

35,836

 

 

 

(16

)%

Change in fair value of contingent consideration

 

 

(650

)

 

 

(100

)

 

 

550

%

 

 

(630

)

 

 

621

 

 

*

 

Impairment charge

 

 

-

 

 

 

989

 

 

 

(100

)%

 

 

-

 

 

 

989

 

 

 

(100

)%

Foreign currency (gain) loss

 

 

(121

)

 

 

269

 

 

*

 

 

 

120

 

 

 

1,274

 

 

 

(91

)%

Operating income (loss)

 

 

7,585

 

 

 

(3,804

)

 

*

 

 

 

(3,408

)

 

 

(11,314

)

 

 

(70

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

$

(4,087

)

 

$

(4,346

)

 

 

(6

)%

 

$

(12,648

)

 

$

(12,464

)

 

 

1

%

Interest income

 

 

646

 

 

 

1,068

 

 

 

(40

)%

 

 

1,801

 

 

 

2,396

 

 

 

(25

)%

Dividend income

 

 

-

 

 

 

-

 

 

-

 

 

 

10

 

 

 

32

 

 

 

(69

)%

Realized gain (loss) on marketable securities

 

 

(1

)

 

 

(33

)

 

 

(97

)%

 

 

(110

)

 

 

(94

)

 

 

17

%

Gain (loss) on debt extinguishment

 

 

-

 

 

 

-

 

 

*

 

 

 

(91

)

 

 

(1,556

)

 

 

(94

)%

Income (loss) before income taxes

 

 

4,143

 

 

 

(7,115

)

 

*

 

 

 

(14,446

)

 

 

(23,000

)

 

 

(37

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Media

 

$

1,020

 

 

$

2,694

 

 

 

 

 

$

4,546

 

 

$

15,060

 

 

 

 

Advertising Technology & Services

 

 

31

 

 

 

883

 

 

 

 

 

 

298

 

 

 

2,600

 

 

 

 

Consolidated

 

$

1,051

 

 

$

3,577

 

 

 

 

 

$

4,844

 

 

$

17,660

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

December 31,

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

2024

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

Media

 

$

484,261

 

 

$

449,928

 

 

 

 

 

 

 

 

 

 

 

 

 

Advertising Technology & Services

 

 

72,997

 

 

 

102,894

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets of discontinued operations

 

 

-

 

 

 

313,124

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

$

557,258

 

 

$

865,946

 

 

 

 

 

 

 

 

 

 

 

 

 

* Percentage not meaningful.