Segment Information

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Segment Information

3. SEGMENT INFORMATION

The Company operates in three reportable segments, as of March 31, 2015, based upon the type of advertising medium, which consist of television broadcasting, radio broadcasting, and digital media. Through June 30, 2014, the Company operated in two reportable segments, television broadcasting and radio broadcasting.  On June 18, 2014, the Company acquired Pulpo Media Inc. (“Pulpo”), a leading provider of digital advertising services and solutions focused on reaching Hispanic audiences in the U.S. and Latin America.  Beginning with the third quarter of 2014, the Company created a new operating segment, digital media, which consists of the financial results of Pulpo.  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 evaluates the business. The Company believes that this information regarding the digital media segment is useful to readers of our financial statements.  The digital segment was not significant to our operations prior to the acquisition of Pulpo, and therefore the segment information for same period of the prior year has not been restated.

Included in the television segment net revenue for the three-month period ended March 31, 2015, is approximately $5.0 million of revenue associated with television station channel modifications made by the Company in order to accommodate the operations of a telecommunications operator.

Television Broadcasting

The Company owns and/or operates 58 primary television stations located primarily in California, Colorado, Connecticut, Florida, Kansas, Massachusetts, Nevada, New Mexico, Texas and the Washington, D.C. area.

Radio Broadcasting

The Company owns and operates 49 radio stations (38 FM and 11 AM) located primarily in Arizona, California, Colorado, Florida, Nevada, New Mexico and Texas.

The Company owns and operates a national sales representation firm, Entravision Solutions, through which we sell advertisements and syndicate radio programming to approximately 350 stations across the United States.

Digital Media

The Company owns and operates an online advertising platform that delivers digital advertising in a variety of formats to reach Hispanics audiences on Internet-connected devices.  

Separate financial data for each of the Company’s operating segments are provided below. Segment operating profit (loss) is defined as operating profit (loss) before corporate expenses. There were no significant sources of revenue generated outside the United States during the three-month periods ended March 31, 2015 and 2014. The Company evaluates the performance of its operating segments based on the following (in thousands):

	Three-Month Period
	Ended March 31,						%
		2015			2014		Change
Net revenue
Television	$	39,502		$	37,741			5	%
Radio		16,345			14,915			10	%
Digital		3,703			-			100	%
Consolidated		59,550			52,656			13	%
Cost of revenue - digital media		1,360			-			100	%
Direct operating expenses
Television		14,679			14,956			(2	)%
Radio		10,186			9,920			3	%
Digital		1,820			-			100	%
Consolidated		26,685			24,876			7	%
Selling, general and administrative expenses
Television		5,055			4,495			12	%
Radio		4,526			4,136			9	%
Digital		920			-			100	%
Consolidated		10,501			8,631			22	%
Depreciation and amortization
Television		2,795			2,715			3	%
Radio		869			800			9	%
Digital		298			-			100	%
Consolidated		3,962			3,515			13	%
Segment operating profit (loss)
Television		16,973			15,575			9	%
Radio		764			59			1,195	%
Digital		(695	)		-			100	%
Consolidated		17,042			15,634			9	%
Corporate expenses		4,993			4,836			3	%
Operating income (loss)		12,049			10,798			12	%
Interest expense		(3,227	)		(3,438	)		(6	)%
Interest income		8			12			(33	)%
Income (loss) before income taxes	$	8,830		$	7,372			20	%
Capital expenditures
Television	$	2,071		$	911
Radio		1,153			923
Digital		18			-
Consolidated	$	3,242		$	1,834
	March 31,			December 31,
Total assets		2015			2014
Television	$	382,134		$	380,775
Radio		123,702			124,050
Digital		21,788			22,942
Consolidated	$	527,624		$	527,767