Segment Information

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Segment Information

3. SEGMENT INFORMATION

As of June 30, 2015, the Company operates in three reportable segments, based upon the type of advertising medium, and which segments are 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 operations 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 six-month period ended June 30, 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- and six-month periods ended June 30, 2015 and 2014. The Company evaluates the performance of its operating segments based on the following (in thousands):

	Three-Month Period									Six-Month Period
	Ended June 30,						%			Ended June 30,						%
		2015			2014		Change				2015			2014		Change
Net revenue
Television	$	36,397		$	43,151			(16	)%	$	75,899		$	80,892			(6	)%
Radio		19,585			18,695			5	%		35,930			33,610			7	%
Digital		3,909			-			100	%		7,612			-			100	%
Consolidated		59,891			61,846			(3	)%		119,441			114,502			4	%
Cost of revenue - digital media		1,392			-			100	%		2,752			-			100	%
Direct operating expenses
Television		14,820			15,503			(4	)%		29,499			29,904			(1	)%
Radio		10,652			10,601			0	%		20,838			20,521			2	%
Digital		1,572			-			100	%		3,392			-			100	%
Consolidated		27,044			26,104			4	%		53,729			50,425			7	%
Selling, general and administrative expenses
Television		4,929			4,683			5	%		9,984			9,733			3	%
Radio		4,768			4,214			13	%		9,294			8,350			11	%
Digital		787			-			100	%		1,707			-			100	%
Consolidated		10,484			8,897			18	%		20,985			18,083			16	%
Depreciation and amortization
Television		2,830			2,671			6	%		5,625			5,386			4	%
Radio		829			832			(0	)%		1,698			1,632			4	%
Digital		299			-			100	%		597			-			100	%
Consolidated		3,958			3,503			13	%		7,920			7,018			13	%
Segment operating profit (loss)
Television		13,818			20,294			(32	)%		30,791			35,869			(14	)%
Radio		3,336			3,048			9	%		4,100			3,107			32	%
Digital		(141	)		-			100	%		(836	)		-			100	%
Consolidated		17,013			23,342			(27	)%		34,055			38,976			(13	)%
Corporate expenses		5,050			5,261			(4	)%		10,043			10,097			(1	)%
Operating income (loss)		11,963			18,081			(34	)%		24,012			28,879			(17	)%
Interest expense		(3,256	)		(3,469	)		(6	)%		(6,483	)		(6,907	)		(6	)%
Interest income		11			13			(15	)%		19			25			(24	)%
Income (loss) before income taxes	$	8,718		$	14,625			(40	)%	$	17,548		$	21,997			(20	)%
Capital expenditures
Television	$	4,288		$	1,662					$	6,359		$	2,574
Radio		2,122			831						3,275			1,755
Digital		82			-						100			-
Consolidated	$	6,492		$	2,493					$	9,734		$	4,329
										June 30,			December 31,
Total assets											2015			2014
Television										$	382,616		$	380,775
Radio											129,867			124,050
Digital											21,951			22,942
Consolidated										$	534,434		$	527,767