Note 6. Business Segments

6 Months Ended

Jun. 24, 2012

Segment Reporting Disclosure [Text Block]

6.             The Company is a diversified communications company located primarily in the southeastern United States.  The Company is comprised of five geographic market segments (Virginia/Tennessee, Florida, Mid-South, North Carolina and Ohio/Rhode Island) along with a sixth segment that includes interactive advertising service companies.  See Note 2 of this Form 10-Q for a complete discussion regarding what comprises discontinued operations and is consequently excluded from the following segment disclosure.

Revenues for the geographic markets include revenues from 18 network-affiliated television stations and their associated websites.  Revenues for the sixth segment, Advertising Services & Other, are generated by two interactive advertising services companies.

Management measures segment performance based on profit or loss from operations before acquisition-related amortization, impairment charges, and other corporate-related charges such as debt modification and extinguishment costs.  Impairment charges and amortization of acquired intangibles are not allocated to individual segments although the intangible assets themselves are included in identifiable assets for each segment.  Intercompany sales are primarily accounted for as if the sales were at current market prices and are eliminated in the consolidated financial statements.  The Company’s reportable segments are managed separately, largely based on geographic market considerations and a desire to provide services to customers regardless of media platform. In certain instances, operations have been aggregated based on similar economic characteristics.

The following table sets forth the Company’s current and prior-year financial performance by segment:

(In thousands)	Revenues			Depreciation and Amortization			Operating Profit (Loss)
Three Months Ended June 24, 2012
Virginia/Tennessee	$	6,736		$	(349	)	$	2,011
Florida		15,120			(383	)		5,646
Mid-South		36,588			(2,719	)		9,457
North Carolina		7,562			(371	)		1,790
Ohio/Rhode Island		17,146			(738	)		6,603
Advertising Services & Other		1,203			(544	)		(977	)
Eliminations		(243	)		-			32
								24,562
Unallocated amounts:
Acquisition intangibles amortization		-			(442	)		(442	)
Corporate expense		-			(564	)		(8,492	)
	$	84,112		$	(6,110	)
Corporate interest expense								(21,641	)
Debt modification and extinguishment costs								(7,689	)
Other								946
Consolidated loss from continuing operations before income taxes							$	(12,756	)

Three Months Ended June 26, 2011
Virginia/Tennessee	$	5,653		$	(378	)	$	1,039
Florida		12,944			(422	)		3,067
Mid-South		32,488			(2,557	)		6,567
North Carolina		5,840			(428	)		504
Ohio/Rhode Island		14,070			(752	)		3,540
Advertising Services & Other		1,009			(722	)		(1,033	)
Eliminations		(282	)		-			43
								13,727
Unallocated amounts:
Acquisition intangibles amortization		-			(1,361	)		(1,361	)
Corporate expense		-			(659	)		(8,423	)
	$	71,722		$	(7,279	)
Corporate interest expense								(17,180	)
Debt modification and extinguishment costs								-
Other								2,455
Consolidated loss from continuing operations before income taxes							$	(10,782	)

(In thousands)	Assets		Revenues			Depreciation and Amortization			Operating Profit (Loss)
Six Months Ended June 24, 2012
Virginia/Tennessee	$	65,342	$	12,644		$	(697	)	$	3,399
Florida		78,506		29,090			(793	)		9,996
Mid-South		332,163		71,662			(5,435	)		18,660
North Carolina		47,081		13,547			(742	)		2,179
Ohio/Rhode Island		130,099		30,476			(1,393	)		9,784
Advertising Services & Other		10,114		2,276			(1,094	)		(1,391	)
Eliminations		-		(464	)		-			59
										42,686
Unallocated amounts:
Acquisition intangibles amortization		-		-			(1,773	)		(1,773	)
Corporate expense		76,489		-			(1,498	)		(17,359	)
Assets of discontinued operations		183,615
	$	923,409	$	159,231		$	(13,425	)
Corporate interest expense										(36,777	)
Debt modification and extinguishment costs										(18,097	)
Other										(2,744	)
Consolidated loss from continuing operations before income taxes									$	(34,064	)

Six Months Ended June 26, 2011
Virginia/Tennessee	$	10,764		$	(760	)	$	1,754
Florida		25,826			(851	)		6,030
Mid-South		62,581			(5,091	)		11,630
North Carolina		11,151			(857	)		671
Ohio/Rhode Island		26,428			(1,525	)		5,883
Advertising Services & Other		2,738			(1,425	)		(1,481	)
Eliminations		(478	)		-			76
								24,563
Unallocated amounts:
Acquisition intangibles amortization		-			(2,709	)		(2,709	)
Corporate expense		-			(1,279	)		(17,292	)
	$	139,010		$	(14,497	)
Corporate interest expense								(33,733	)
Debt modification and extinguishment costs								-
Other								(324	)
Consolidated loss from continuing operations before income taxes							$	(29,495	)