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Segment Information
 6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Segment Information

5. SEGMENT INFORMATION

The Company’s management has determined that the Company operates in three reportable segments as of June 30, 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 June 30, 2020, 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

As of June 30, 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 18% and 17% of its revenue outside the United States during the three-month periods ended June 30, 2020 and 2019, respectively. The Company generated 15% and 16% of its revenue outside the United States during the six-month periods ended June 30, 2020 and 2019, respectively. 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,

 

 

%

 

 

 

 

2020

 

 

 

2019

 

 

Change

 

 

 

2020

 

 

 

2019

 

 

Change

 

Net revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Television

 

$

26,955

 

 

$

38,071

 

 

 

(29

)%

 

$

66,154

 

 

$

76,324

 

 

 

(13

)%

Digital

 

 

11,373

 

 

 

16,804

 

 

 

(32

)%

 

 

24,704

 

 

 

31,276

 

 

 

(21

)%

Radio

 

 

6,788

 

 

 

14,366

 

 

 

(53

)%

 

 

18,507

 

 

 

26,321

 

 

 

(30

)%

Consolidated

 

 

45,116

 

 

 

69,241

 

 

 

(35

)%

 

 

109,365

 

 

 

133,921

 

 

 

(18

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue - digital media

 

 

6,447

 

 

 

8,859

 

 

 

(27

)%

 

 

13,794

 

 

 

16,501

 

 

 

(16

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Television

 

 

13,058

 

 

 

15,157

 

 

 

(14

)%

 

 

28,883

 

 

 

30,084

 

 

 

(4

)%

Digital

 

 

2,943

 

 

 

4,970

 

 

 

(41

)%

 

 

6,136

 

 

 

9,465

 

 

 

(35

)%

Radio

 

 

6,139

 

 

 

9,528

 

 

 

(36

)%

 

 

13,800

 

 

 

19,036

 

 

 

(28

)%

Consolidated

 

 

22,140

 

 

 

29,655

 

 

 

(25

)%

 

 

48,819

 

 

 

58,585

 

 

 

(17

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Television

 

 

4,678

 

 

 

5,634

 

 

 

(17

)%

 

 

10,610

 

 

 

11,448

 

 

 

(7

)%

Digital

 

 

3,213

 

 

 

3,515

 

 

 

(9

)%

 

 

6,884

 

 

 

6,740

 

 

 

2

%

Radio

 

 

3,006

 

 

 

4,396

 

 

 

(32

)%

 

 

6,994

 

 

 

9,171

 

 

 

(24

)%

Consolidated

 

 

10,897

 

 

 

13,545

 

 

 

(20

)%

 

 

24,488

 

 

 

27,359

 

 

 

(10

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Television

 

 

3,411

 

 

 

2,562

 

 

 

33

%

 

 

6,286

 

 

 

4,822

 

 

 

30

%

Digital

 

 

-

 

 

 

1,173

 

 

 

(100

)%

 

 

1,150

 

 

 

2,497

 

 

 

(54

)%

Radio

 

 

462

 

 

 

571

 

 

 

(19

)%

 

 

949

 

 

 

903

 

 

 

5

%

Consolidated

 

 

3,873

 

 

 

4,306

 

 

 

(10

)%

 

 

8,385

 

 

 

8,222

 

 

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment operating profit (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Television

 

 

5,808

 

 

 

14,718

 

 

 

(61

)%

 

 

20,375

 

 

 

29,970

 

 

 

(32

)%

Digital

 

 

(1,230

)

 

 

(1,713

)

 

 

(28

)%

 

 

(3,260

)

 

 

(3,927

)

 

 

(17

)%

Radio

 

 

(2,819

)

 

 

(129

)

 

*

 

 

 

(3,236

)

 

 

(2,789

)

 

 

16

%

Consolidated

 

 

1,759

 

 

 

12,876

 

 

 

(86

)%

 

 

13,879

 

 

 

23,254

 

 

 

(40

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate expenses

 

 

5,384

 

 

 

6,501

 

 

 

(17

)%

 

 

12,224

 

 

 

13,395

 

 

 

(9

)%

Change in fair value contingent consideration

 

 

-

 

 

 

(2,735

)

 

 

(100

)%

 

 

-

 

 

 

(2,376

)

 

 

(100

)%

Impairment charge

 

 

-

 

 

 

22,368

 

 

 

(100

)%

 

 

39,835

 

 

 

22,368

 

 

 

78

%

Foreign currency (gain) loss

 

 

(155

)

 

 

(82

)

 

 

89

%

 

 

1,353

 

 

 

50

 

 

*

 

Other operating (gain) loss

 

 

(2,030

)

 

 

(1,597

)

 

 

27

%

 

 

(2,866

)

 

 

(3,593

)

 

 

(20

)%

Operating income (loss)

 

 

(1,440

)

 

 

(11,579

)

 

 

(88

)%

 

 

(36,667

)

 

 

(6,590

)

 

 

456

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

$

(2,024

)

 

$

(3,554

)

 

 

(43

)%

 

$

(4,704

)

 

$

(7,044

)

 

 

(33

)%

Interest income

 

 

539

 

 

 

857

 

 

 

(37

)%

 

 

1,162

 

 

 

1,776

 

 

 

(35

)%

Dividend income

 

 

-

 

 

 

251

 

 

 

(100

)%

 

 

24

 

 

 

506

 

 

 

(95

)%

Income (loss) before income taxes

 

 

(2,925

)

 

 

(14,025

)

 

 

(79

)%

 

 

(40,185

)

 

 

(11,352

)

 

 

254

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Television

 

$

1,325

 

 

$

7,661

 

 

 

 

 

 

$

4,507

 

 

$

14,002

 

 

 

 

 

Digital

 

 

473

 

 

 

121

 

 

 

 

 

 

 

771

 

 

 

240

 

 

 

 

 

Radio

 

 

135

 

 

 

199

 

 

 

 

 

 

 

331

 

 

 

581

 

 

 

 

 

Consolidated

 

$

1,933

 

 

$

7,981

 

 

 

 

 

 

$

5,609

 

 

$

14,823

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

 

December 31,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

2020

 

 

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Television

 

 

442,074

 

 

 

465,758

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Digital

 

 

32,294

 

 

 

51,979

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Radio

 

 

121,806

 

 

 

138,463

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

$

596,174

 

 

$

656,200

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*

Percentage not meaningful.