Segment Information

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Segment Information

3. SEGMENT INFORMATION

As of June 30, 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 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 56 primary television stations located primarily in California, Colorado, Connecticut, Florida, Kansas, Massachusetts, Nevada, New Mexico, Texas and Washington, D.C.

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 syndicates 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 Hispanic 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, 2016 and 2015. 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,						%
		2016			2015		Change				2016			2015		Change
Net revenue
Television	$	39,215		$	36,397			8	%	$	75,780		$	75,899			(0	)%
Radio		19,552			19,585			(0	)%		36,436			35,930			1	%
Digital		6,062			3,909			55	%		10,726			7,612			41	%
Consolidated		64,829			59,891			8	%		122,942			119,441			3	%
Cost of revenue - digital media		2,373			1,392			70	%		4,212			2,752			53	%
Direct operating expenses
Television		15,475			14,820			4	%		30,509			29,499			3	%
Radio		11,285			10,652			6	%		22,226			20,838			7	%
Digital		1,778			1,572			13	%		3,368			3,392			(1	)%
Consolidated		28,538			27,044			6	%		56,103			53,729			4	%
Selling, general and administrative expenses
Television		5,193			4,929			5	%		10,639			9,984			7	%
Radio		4,950			4,768			4	%		9,838			9,294			6	%
Digital		1,267			787			61	%		2,368			1,707			39	%
Consolidated		11,410			10,484			9	%		22,845			20,985			9	%
Depreciation and amortization
Television		2,705			2,830			(4	)%		5,572			5,625			(1	)%
Radio		842			829			2	%		1,632			1,698			(4	)%
Digital		338			299			13	%		708			597			19	%
Consolidated		3,885			3,958			(2	)%		7,912			7,920			(0	)%
Segment operating profit (loss)
Television		15,842			13,818			15	%		29,060			30,791			(6	)%
Radio		2,475			3,336			(26	)%		2,740			4,100			(33	)%
Digital		306			(141	)	*				70			(836	)	*
Consolidated		18,623			17,013			9	%		31,870			34,055			(6	)%
Corporate expenses		5,293			5,050			5	%		10,897			10,043			9	%
Operating income		13,330			11,963			11	%		20,973			24,012			(13	)%
Interest expense	$	(3,859	)	$	(3,256	)		19	%	$	(7,725	)	$	(6,483	)		19	%
Interest income		118			11			973	%		125			19			558	%
Income before income taxes		9,589			8,718			10	%		13,373			17,548			(24	)%
Capital expenditures
Television	$	1,138		$	4,288					$	2,558		$	6,359
Radio		1,061			2,122						1,832			3,275
Digital		147			82						196			100
Consolidated	$	2,346		$	6,492					$	4,586		$	9,734
										June 30,			December 31,
Total assets											2016			2015
Television											372,055			367,869
Radio											129,892			132,395
Digital											23,318			24,698
Consolidated										$	525,265		$	524,962