Segment Information

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Segment Information

3. SEGMENT INFORMATION

As of September 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 three- and nine-month periods ended September 30, 2015, is approximately $5.5 million and $10.5 million, respectively, 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 54 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 digital media operations, offering mobile, digital and other interactive media platforms and services on Internet-connected devices, including local websites and social media, that provide users with news information and other content.

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 nine-month periods ended September 30, 2016 and 2015. The Company evaluates the performance of its operating segments based on the following (in thousands):

	Three-Month Period									Nine-Month Period
	Ended September 30,						%			Ended September 30,						%
		2016			2015		Change				2016			2015		Change
Net revenue
Television	$	40,363		$	43,393			(7	)%	$	116,143		$	119,292			(3	)%
Radio		19,169			20,855			(8	)%		55,605			56,785			(2	)%
Digital		5,749			5,013			15	%		16,475			12,625			30	%
Consolidated		65,281			69,261			(6	)%		188,223			188,702			(0	)%
Cost of revenue - digital media		2,281			1,881			21	%		6,493			4,633			40	%
Direct operating expenses
Television		15,604			15,159			3	%		46,113			44,658			3	%
Radio		11,284			11,027			2	%		33,510			31,865			5	%
Digital		1,350			1,438			(6	)%		4,718			4,830			(2	)%
Consolidated		28,238			27,624			2	%		84,341			81,353			4	%
Selling, general and administrative expenses
Television		5,547			5,286			5	%		16,186			15,270			6	%
Radio		5,138			4,838			6	%		14,976			14,132			6	%
Digital		1,264			1,056			20	%		3,632			2,763			31	%
Consolidated		11,949			11,180			7	%		34,794			32,165			8	%
Depreciation and amortization
Television		2,614			2,964			(12	)%		8,186			8,589			(5	)%
Radio		847			767			10	%		2,479			2,465			1	%
Digital		351			299			17	%		1,059			896			18	%
Consolidated		3,812			4,030			(5	)%		11,724			11,950			(2	)%
Segment operating profit (loss)
Television		16,598			19,984			(17	)%		45,658			50,775			(10	)%
Radio		1,900			4,223			(55	)%		4,640			8,323			(44	)%
Digital		503			339			48	%		573			(497	)	*
Consolidated		19,001			24,546			(23	)%		50,871			58,601			(13	)%
Corporate expenses		5,728			5,535			3	%		16,625			15,578			7	%
Operating income		13,273			19,011			(30	)%		34,246			43,023			(20	)%
Interest expense	$	(3,894	)	$	(3,286	)		19	%	$	(11,619	)	$	(9,769	)		19	%
Interest income		71			12			492	%		196			31			532	%
Income before income taxes		9,450			15,737			(40	)%		22,823			33,285			(31	)%
Capital expenditures
Television	$	1,641		$	294					$	4,199		$	6,653
Radio		660			1,341						2,492			4,616
Digital		35			159						231			259
Consolidated	$	2,336		$	1,794					$	6,922		$	11,528
										September 30,			December 31,
Total assets											2016			2015
Television											377,532			367,869
Radio											129,456			132,395
Digital											24,071			24,698
Consolidated										$	531,059		$	524,962