Segment Information

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Segment Information

3. SEGMENT INFORMATION

As of March 31, 2016, the Company operates in three reportable segments, based upon the type of advertising medium, 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 the Company’s financial statements.  The digital media segment was not significant to the Company’s operations prior to its acquisition of Pulpo.  

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 56 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 the Company sells 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, 2016 and 2015. The Company evaluates the performance of its operating segments based on the following (in thousands):

	Three-Month Period
	Ended March 31,						%
		2016			2015		Change
Net revenue
Television	$	36,565		$	39,502			(7	)%
Radio		16,884			16,345			3	%
Digital		4,664			3,703			26	%
Consolidated		58,113			59,550			(2	)%
Cost of revenue - digital media		1,839			1,360			35	%
Direct operating expenses
Television		15,034			14,679			2	%
Radio		10,941			10,186			7	%
Digital		1,590			1,820			(13	)%
Consolidated		27,565			26,685			3	%
Selling, general and administrative expenses
Television		5,446			5,055			8	%
Radio		4,888			4,526			8	%
Digital		1,101			920			20	%
Consolidated		11,435			10,501			9	%
Depreciation and amortization
Television		2,867			2,795			3	%
Radio		790			869			(9	)%
Digital		370			298			24	%
Consolidated		4,027			3,962			2	%
Segment operating profit (loss)
Television		13,218			16,973			(22	)%
Radio		265			764			(65	)%
Digital		(236	)		(695	)		(66	)%
Consolidated		13,247			17,042			(22	)%
Corporate expenses		5,604			4,993			12	%
Operating income		7,643			12,049			(37	)%
Interest expense		(3,866	)		(3,227	)		20	%
Interest income		7			8			(13	)%
Income before income taxes	$	3,784		$	8,830			(57	)%
Capital expenditures
Television	$	1,419		$	2,071
Radio		771			1,153
Digital		49			18
Consolidated	$	2,239		$	3,242
	March 31,			December 31,
Total assets		2016			2015
Television	$	370,041		$	367,869
Radio		128,599			132,395
Digital		23,250			24,698
Consolidated	$	521,890		$	524,962