Segment Information

6 Months Ended

Jun. 30, 2011

Segment Information [Abstract]

Segment Information

Note 12 — Segment Information

We operate in three reportable segments, Hospitality, Advertising Services and Healthcare. We organize and manage our segments based upon the products and services delivered and the nature of our customer base receiving those products and services. The Hospitality business distributes entertainment, media and connectivity services to the hospitality industry. Our Advertising Services business generates revenue from the sale of advertising-based media services within our hospitality customer base, utilizing the same server-based technology or by the delivery of advertising using 10 television programming channels. Our Healthcare business generates revenue from the sale of interactive system hardware, software licenses, installation services and related programming and support agreements to the healthcare market.

Our Hospitality and Advertising Services businesses provide a variety of interactive and media network solutions to hotels and/or the respective hotels’ guests. The products can include interactive video-on-demand programming, music, games, cable television programming, Internet services or advertising services, and have an analogous consumer base. All products and services are delivered through a proprietary system platform utilizing satellite delivery technology, and are geared towards the hotels and their guests.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies, except certain expenses are not allocated to the segments. These unallocated expenses are corporate overhead, depreciation and amortization expenses, restructuring charges, other operating income (expense), interest expense, loss on the early retirement of debt, other income (expense) and income tax expense. We evaluate segment performance based upon operating profit and loss before the aforementioned expenses.

Financial information related to our reportable segments for the three and six months ended June 30 is as follows (dollar amounts in thousands):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Total revenues:
Hospitality	$	101,134		$	109,074		$	204,434		$	222,233
Advertising Services		2,255			2,584			4,789			4,924
Healthcare		3,246			1,413			5,140			3,966
Total	$	106,635		$	113,071		$	214,363		$	231,123
Operating profit:
Hospitality	$	29,551		$	32,864		$	60,689		$	67,358
Advertising Services		191			212			731			(10	)
Healthcare		945			262			1,388			607
Operating profit		30,687			33,338			62,808			67,955
Corporate		(4,731	)		(6,113	)		(9,163	)		(11,915	)
Depreciation and amortization		(17,783	)		(20,925	)		(37,423	)		(43,097	)
Restructuring charge		(3	)		(239	)		(1,164	)		(242	)
Other operating income (expense)		8			-			21			(6	)
Interest expense		(10,962	)		(8,712	)		(18,633	)		(17,395	)
Loss on early retirement of debt		-			(267	)		(158	)		(760	)
Other (expense) income		(3	)		2			315			227
Loss before income taxes	$	(2,787	)	$	(2,916	)	$	(3,397	)	$	(5,233	)