Segment Information

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Segment Information

3. SEGMENT INFORMATION

As of March 31, 2017, the Company operates in three reportable segments, based upon the type of advertising medium: 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 the acquisition of Pulpo.  

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 division, 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-month periods ended March 31, 2017 and 2016. The Company evaluates the performance of its operating segments based on the following (in thousands):

	Three-Month Period
	Ended March 31,						%
		2017			2016		Change
Net revenue
Television	$	37,710		$	36,565			3	%
Radio		15,719			16,884			(7	)%
Digital		4,081			4,664			(13	)%
Consolidated		57,510			58,113			(1	)%
Cost of revenue - digital media		1,752			1,839			(5	)%
Direct operating expenses
Television		14,754			15,034			(2	)%
Radio		11,017			10,941			1	%
Digital		1,321			1,590			(17	)%
Consolidated		27,092			27,565			(2	)%
Selling, general and administrative expenses
Television		5,451			5,446			0	%
Radio		4,704			4,888			(4	)%
Digital		1,045			1,101			(5	)%
Consolidated		11,200			11,435			(2	)%
Depreciation and amortization
Television		2,463			2,867			(14	)%
Radio		726			790			(8	)%
Digital		357			370			(4	)%
Consolidated		3,546			4,027			(12	)%
Segment operating profit (loss)
Television		15,042			13,218			14	%
Radio		(728	)		265		*
Digital		(394	)		(236	)		67	%
Consolidated		13,920			13,247			5	%
Corporate expenses		5,867			5,604			5	%
Operating income		8,053			7,643			5	%
Interest expense	$	(3,645	)	$	(3,866	)		-6	%
Interest income		109			7			1,457	%
Income before income taxes		4,517			3,784			19	%
Capital expenditures
Television	$	967		$	1,419
Radio		268			771
Digital		9			49
Consolidated	$	1,244		$	2,239
	March 31,			December 31,
Total assets		2017			2016
Television		363,738			363,852
Radio		128,928			129,825
Digital		21,599			24,244
Consolidated	$	514,265		$	517,921

* Percentage not meaningful.