Segment Information

3 Months Ended

Mar. 31, 2020

5. SEGMENT INFORMATION

The Company’s management has determined that the Company operates in three reportable segments as of March 31, 2020, based upon the type of advertising medium, which segments are television, radio and digital. 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.

Television

As of March 31, 2020, 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

As of March 31, 2020, the Company owns and operates 49 radio stations (38 FM and 11 AM) located in Arizona, California, Colorado, Florida, Nevada, New Mexico and Texas.

The Company sells advertisements and syndicates radio programming to more than 100 markets across the United States.

Digital

The Company operates proprietary technology and data platforms that deliver digital advertising in various advertising formats and which allow advertisers to reach audiences across a wide range of Internet-connected devices on the Company’s owned and operated digital media sites; the digital media sites of its publisher partners; and on other digital media sites it can access through third-party platforms and exchanges.

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, change in fair value contingent consideration, impairment charge, foreign currency (gain) loss and other operating (gain) loss. The Company generated 14% and 15% of its revenue outside the United States during the three-month periods ended March 31, 2020 and 2019, respectively. The Company evaluates the performance of its operating segments based on the following (in thousands):

	Three-Month Period
	Ended March 31,						%
		2020			2019		Change
Net revenue
Television	$	39,199		$	38,253			2	%
Radio		11,719			11,955			(2	)%
Digital		13,331			14,472			(8	)%
Consolidated		64,249			64,680			(1	)%

Cost of revenue - digital media		7,347			7,642			(4	)%

Direct operating expenses
Television		15,825			14,927			6	%
Radio		7,661			9,508			(19	)%
Digital		3,193			4,495			(29	)%
Consolidated		26,679			28,930			(8	)%

Selling, general and administrative expenses
Television		5,932			5,814			2	%
Radio		3,988			4,775			(16	)%
Digital		3,671			3,225			14	%
Consolidated		13,591			13,814			(2	)%

Depreciation and amortization
Television		2,875			2,260			27	%
Radio		487			332			47	%
Digital		1,150			1,324			(13	)%
Consolidated		4,512			3,916			15	%

Segment operating profit (loss)
Television		14,567			15,252			(4	)%
Radio		(417	)		(2,660	)		(84	)%
Digital		(2,030	)		(2,214	)		(8	)%
Consolidated		12,120			10,378			17	%

Corporate expenses		6,840			6,894			(1	)%
Change in fair value contingent consideration		-			359			(100	)%
Impairment charge		39,835			-		*
Foreign currency (gain) loss		1,508			132			1,042	%
Other operating (gain) loss		(836	)		(1,996	)		(58	)%
Operating income (loss)		(35,227	)		4,989		*

Interest expense	$	(2,680	)	$	(3,490	)		(23	)%
Interest income		624			919			(32	)%
Dividend income		23			255			(91	)%
Income (loss) before income taxes		(37,260	)		2,673		*

Capital expenditures
Television	$	3,182		$	6,341
Radio		196			382
Digital		298			119
Consolidated	$	3,676		$	6,842

	March 31,			December 31,
Total assets		2020			2019
Television		447,242			465,758
Radio		127,566			138,463
Digital		38,323			51,979
Consolidated	$	613,131		$	656,200

*	Percentage not meaningful.