Segment Information

9 Months Ended

Sep. 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 September 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 September 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 September 30, 2020, the Company owns and operates 48 radio stations (38 FM and 10 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 18% of its revenue outside the United States during the three-month periods ended September 30, 2020 and 2019, respectively. The Company generated 15% and 17% of its revenue outside the United States during the nine-month periods ended September 30, 2020 and 2019, respectively. 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,						%
		2020			2019		Change				2020			2019		Change
Net revenue
Television	$	37,786		$	36,421			4	%	$	103,940		$	112,745			(8	)%
Digital		13,655			17,612			(22	)%		38,359			48,888			(22	)%
Radio		11,537			14,783			(22	)%		30,044			41,104			(27	)%
Consolidated		62,978			68,816			(8	)%		172,343			202,737			(15	)%
Cost of revenue - digital media		7,808			9,942			(21	)%		21,602			26,443			(18	)%
Direct operating expenses
Television		14,582			15,661			(7	)%		43,465			45,745			(5	)%
Digital		2,968			5,214			(43	)%		9,104			14,679			(38	)%
Radio		6,628			9,932			(33	)%		20,428			28,968			(29	)%
Consolidated		24,178			30,807			(22	)%		72,997			89,392			(18	)%
Selling, general and administrative expenses
Television		4,396			5,497			(20	)%		15,006			16,945			(11	)%
Digital		2,415			2,751			(12	)%		9,299			9,491			(2	)%
Radio		3,072			4,209			(27	)%		10,066			13,380			(25	)%
Consolidated		9,883			12,457			(21	)%		34,371			39,816			(14	)%
Depreciation and amortization
Television		3,387			2,613			30	%		9,673			7,435			30	%
Digital		112			1,112			(90	)%		1,262			3,609			(65	)%
Radio		435			465			(6	)%		1,384			1,368			1	%
Consolidated		3,934			4,190			(6	)%		12,319			12,412			(1	)%
Segment operating profit (loss)
Television		15,421			12,650			22	%		35,796			42,620			(16	)%
Digital		352			(1,407	)	*				(2,908	)		(5,334	)		(45	)%
Radio		1,402			177			692	%		(1,834	)		(2,612	)		(30	)%
Consolidated		17,175			11,420			50	%		31,054			34,674			(10	)%
Corporate expenses		6,287			6,785			(7	)%		18,511			20,180			(8	)%
Change in fair value contingent consideration		-			-			0	%		-			(2,376	)		(100	)%
Impairment charge		-			9,075			(100	)%		39,835			31,443			27	%
Foreign currency (gain) loss		(680	)		927		*				673			977			(31	)%
Other operating (gain) loss		(2,683	)		(1,572	)		71	%		(5,549	)		(5,165	)		7	%
Operating income (loss)		14,251			(3,795	)	*				(22,416	)		(10,385	)		116	%
Interest expense	$	(1,969	)	$	(3,537	)		(44	)%	$	(6,673	)	$	(10,581	)		(37	)%
Interest income		467			825			(43	)%		1,630			2,601			(37	)%
Dividend income		3			241			(99	)%		26			747			(97	)%
Income (loss) before income taxes		12,752			(6,266	)	*				(27,433	)		(17,618	)		56	%
Capital expenditures
Television	$	1,243		$	7,460					$	5,750		$	21,462
Digital		462			64						1,233			304
Radio		136			86						467			667
Consolidated	$	1,841		$	7,610					$	7,450		$	22,433
	September 30,			December 31,
Total assets		2020			2019
Television		443,035			465,758
Digital		34,075			51,979
Radio		122,268			138,463
Consolidated	$	599,378		$	656,200

* Percentage not meaningful.