SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2022

SEGMENT INFORMATION

SEGMENT INFORMATION

7.    SEGMENT INFORMATION:

The Company has four reportable segments: (i) radio broadcasting; (ii) Reach Media; (iii) digital; and (iv) cable television. These segments operate in the United States and are consistently aligned with the Company’s management of its businesses and its financial reporting structure.

The radio broadcasting segment consists of all broadcast results of operations. The Reach Media segment consists of the results of operations for the related activities and operations of our syndicated shows. The digital segment includes the results of our online business, including the operations of Interactive One, as well as the digital components of our other reportable segments. The cable television segment consists of the Company’s cable TV operation, including results of operations of TV One and CLEO TV. Corporate/Eliminations represents financial activity associated with our corporate staff and offices and intercompany activity among the four segments.

Operating loss or income represents total revenues less operating expenses, depreciation and amortization, and impairment of long-lived assets. Intercompany revenue earned and expenses charged between segments are recorded at estimated fair value and eliminated in consolidation.

The accounting policies described in the summary of significant accounting policies in Note 1 – Organization and Summary of Significant Accounting Policies are applied consistently across the segments.

Detailed segment data for the three and six months ended June 30, 2022 and 2021, is presented in the following tables:

	Three Months Ended
	June 30,
	2022		2021
	(Unaudited)
	(In thousands)
Net Revenue:
Radio Broadcasting	$	37,192	$	35,465
Reach Media		11,092		9,414
Digital		17,881		15,129
Cable Television		53,449		48,461
Corporate/Eliminations*		(804)		(876)
Consolidated	$	118,810	$	107,593
Operating Expenses (including stock-based compensation and excluding depreciation and amortization and impairment of long-lived assets):
Radio Broadcasting	$	25,538	$	22,369
Reach Media		6,279		6,002
Digital		10,218		8,800
Cable Television		25,551		23,550
Corporate/Eliminations		7,975		6,627
Consolidated	$	75,561	$	67,348
Depreciation and Amortization:
Radio Broadcasting	$	825	$	792
Reach Media		46		53
Digital		332		315
Cable Television		952		937
Corporate/Eliminations		326		228
Consolidated	$	2,481	$	2,325
Impairment of Long-Lived Assets:
Radio Broadcasting	$	16,933	$	—
Reach Media		—		—
Digital		—		—
Cable Television		—		—
Corporate/Eliminations		—		—
Consolidated	$	16,933	$	—
Operating income (loss):
Radio Broadcasting	$	(6,104)	$	12,304
Reach Media		4,767		3,359
Digital		7,331		6,014
Cable Television		26,946		23,974
Corporate/Eliminations		(9,105)		(7,731)
Consolidated	$	23,835	$	37,920
*  Intercompany revenue included in net revenue above is as follows:
Radio Broadcasting	$	(804)	$	(876)

Capital expenditures by segment are as follows:
Radio Broadcasting	$	616	$	966
Reach Media		153		31
Digital		410		246
Cable Television		233		144
Corporate/Eliminations		883		263
Consolidated	$	2,295	$	1,650

	Six Months Ended
	June 30,
	2022		2021
	(Unaudited)
	(In thousands)
Net Revenue:
Radio Broadcasting	$	68,684	$	63,253
Reach Media		21,123		17,230
Digital		33,367		25,484
Cable Television		109,883		94,703
Corporate/Eliminations*		(1,898)		(1,637)
Consolidated	$	231,159	$	199,033
Operating Expenses (including stock-based compensation and excluding depreciation and amortization and impairment of long-lived assets):
Radio Broadcasting	$	49,156	$	45,698
Reach Media		12,475		11,176
Digital		21,082		16,853
Cable Television		51,698		45,071
Corporate/Eliminations		14,556		13,969
Consolidated	$	148,967	$	132,767
Depreciation and Amortization:
Radio Broadcasting	$	1,640	$	1,522
Reach Media		93		111
Digital		665		638
Cable Television		1,899		1,866
Corporate/Eliminations		589		452
Consolidated	$	4,886	$	4,589
Impairment of Long-Lived Assets:
Radio Broadcasting	$	16,933	$	—
Reach Media		—		—
Digital		—		—
Cable Television		—		—
Corporate/Eliminations		—		—
Consolidated	$	16,933	$	—
Operating income (loss):
Radio Broadcasting	$	955	$	16,033
Reach Media		8,555		5,943
Digital		11,620		7,993
Cable Television		56,286		47,766
Corporate/Eliminations		(17,043)		(16,058)
Consolidated	$	60,373	$	61,677
*  Intercompany revenue included in net revenue above is as follows:
Radio Broadcasting	$	(1,898)	$	(1,637)

Capital expenditures by segment are as follows:
Radio Broadcasting	$	1,256	$	1,227
Reach Media		174		32
Digital		635		572
Cable Television		616		182
Corporate/Eliminations		1,190		441
Consolidated	$	3,871	$	2,454

	As of
	June 30,		December 31,
	2022		2021
	(Unaudited)
	(In thousands)
Total Assets:
Radio Broadcasting	$	604,868	$	627,948
Reach Media		32,913		33,451
Digital		30,292		32,915
Cable Television		397,214		367,896
Corporate/Eliminations		189,477		198,898
Consolidated	$	1,254,764	$	1,261,108