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Segment Information | 6 Months Ended
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Jun. 30, 2023
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, 2023, based upon the type of advertising medium, which segments are digital, television and audio. 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. Digital The Company's digital segment, whose operations are located in Latin America, Europe, the United States, Asia and Africa, reaches a global market, with a focus on advertisers principally in emerging economies that wish to advertise on digital platforms owned and operated primarily by global media companies. The Company provides digital end-to-end advertising solutions that allow advertisers to reach online users worldwide. These solutions are comprised of four business units: • the Company's digital commercial partnerships business; • Smadex, the Company's programmatic ad purchasing platform; • the Company's mobile growth solutions business; and • the Company's digital audio business. Through the Company's digital commercial partnerships business – the largest of its digital business units – the Company acts as an intermediary between primarily global media companies and advertising customers or their ad agencies. The global media companies represented by the Company include Meta (formerly known as Facebook Inc.), Spotify, ByteDance and X (formerly known as Twitter, Inc.), as well as other media companies throughout the world. The Company's dedicated local sales teams sell advertising space on these and other media companies' digital platforms to its advertising customers or their ad agencies for the placement of ads directed to online users of a wide range of Internet-connected devices. The Company also provides some of its advertising customers billing, technological and other support, including strategic marketing and training, which it refers to as managed services. Smadex is the Company's programmatic ad purchasing platform, on which advertisers can purchase ad inventory. This business – the purchase and sale of advertising inventory electronically – is referred to in the Company's industry as programmatic advertising. Smadex is also a “demand-side" platform, which allows advertisers to purchase space from online marketplaces on which media companies list their advertising inventory. Most advertisements acquired through Smadex are placed on mobile devices, but they may also be placed on computers and other Internet-connected devices. The Company also provides managed services to some of its advertising customers in connection with their use of its Smadex platform. The Company also offers a mobile growth solutions business, which provides managed services to advertisers looking to connect with consumers, primarily on mobile devices. This business allows the Company to manage programmatic media buys for its advertising customers or their ad agencies through multiple ad purchasing platforms in real time across multiple channels. The Company's digital audio business provides digital audio advertising solutions for advertisers in the Americas. The Company's advertising customers and their ad agencies use these solutions to promote their brands on online audio streams, and provides them with tools to target specific users by demographic and geographic categories. Television The Company's television operations reach and engage primarily U.S. Hispanics in the United States. The Company owns and/or operates 49 primary television stations located primarily in California, Colorado, Connecticut, Florida, Kansas, Massachusetts, Nevada, New Mexico, Texas and Washington, D.C. The Company generates revenue from advertising, retransmission consent agreements and the monetization of spectrum usage rights in these markets. Audio The Company's audio operations reach and engage primarily U.S. Hispanics in the United States. The Company owns and operates 45 radio stations (37 FM and 8 AM) located primarily in Arizona, California, Colorado, Florida, Nevada, New Mexico and Texas. The Company also sells advertisements and syndicates radio programming to more than 100 markets across the United States. Separate financial data for each of the Company’s operating segments are pr ovided below. Segment operating profit (loss) is defined as operating profit (loss) before corporate expenses, change in fair value of contingent consideration, impairment charge, foreign currency (gain) loss and other operating (gain) loss. The Company generated 81% and 73% of its revenue outside the United States during the three-month periods ended June 30, 2023 and 2022, respectively. The Company generated 81% and 73% of its revenue outside the United States during the six-month periods ended June 30, 2023 and 2022, 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, |  |  | % |
|  | 2023 |  |  | 2022 |  |  | Change |  |  | 2023 |  |  | 2022 |  |  | Change |
Net revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Digital |  | $ | 229,896 |  |  | $ | 174,378 |  |  |  | 32 | % |  | $ | 426,378 |  |  | $ | 328,089 |  |  |  | 30 | %
Television |  |  | 29,943 |  |  |  | 32,373 |  |  |  | (8 | )% |  |  | 60,255 |  |  |  | 63,240 |  |  |  | (5 | )%
Audio |  |  | 13,542 |  |  |  | 14,944 |  |  |  | (9 | )% |  |  | 25,754 |  |  |  | 27,538 |  |  |  | (6 | )%
Consolidated |  |  | 273,381 |  |  |  | 221,695 |  |  |  | 23 | % |  |  | 512,387 |  |  |  | 418,867 |  |  |  | 22 | %
Cost of revenue - digital |  |  | 195,836 |  |  |  | 144,965 |  |  |  | 35 | % |  |  | 363,592 |  |  |  | 274,856 |  |  |  | 32 | %
Direct operating expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Digital |  |  | 10,283 |  |  |  | 7,843 |  |  |  | 31 | % |  |  | 18,293 |  |  |  | 14,976 |  |  |  | 22 | %
Television |  |  | 15,024 |  |  |  | 14,488 |  |  |  | 4 | % |  |  | 29,783 |  |  |  | 28,771 |  |  |  | 4 | %
Audio |  |  | 7,758 |  |  |  | 7,265 |  |  |  | 7 | % |  |  | 14,851 |  |  |  | 13,672 |  |  |  | 9 | %
Consolidated |  |  | 33,065 |  |  |  | 29,596 |  |  |  | 12 | % |  |  | 62,927 |  |  |  | 57,419 |  |  |  | 10 | %
Selling, general and administrative expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Digital |  |  | 14,760 |  |  |  | 9,419 |  |  |  | 57 | % |  |  | 28,289 |  |  |  | 17,521 |  |  |  | 61 | %
Television |  |  | 4,844 |  |  |  | 5,238 |  |  |  | (8 | )% |  |  | 10,184 |  |  |  | 10,195 |  |  |  | (0 | )%
Audio |  |  | 3,961 |  |  |  | 3,118 |  |  |  | 27 | % |  |  | 7,860 |  |  |  | 6,098 |  |  |  | 29 | %
Consolidated |  |  | 23,565 |  |  |  | 17,775 |  |  |  | 33 | % |  |  | 46,333 |  |  |  | 33,814 |  |  |  | 37 | %
Depreciation and amortization |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Digital |  |  | 3,729 |  |  |  | 2,644 |  |  |  | 41 | % |  |  | 7,360 |  |  |  | 5,321 |  |  |  | 38 | %
Television |  |  | 2,551 |  |  |  | 2,808 |  |  |  | (9 | )% |  |  | 5,209 |  |  |  | 5,701 |  |  |  | (9 | )%
Audio |  |  | 229 |  |  |  | 811 |  |  |  | (72 | )% |  |  | 411 |  |  |  | 1,636 |  |  |  | (75 | )%
Consolidated |  |  | 6,509 |  |  |  | 6,263 |  |  |  | 4 | % |  |  | 12,980 |  |  |  | 12,658 |  |  |  | 3 | %
Segment operating profit (loss) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Digital |  |  | 5,288 |  |  |  | 9,507 |  |  |  | (44 | )% |  |  | 8,844 |  |  |  | 15,415 |  |  |  | (43 | )%
Television |  |  | 7,524 |  |  |  | 9,839 |  |  |  | (24 | )% |  |  | 15,079 |  |  |  | 18,573 |  |  |  | (19 | )%
Audio |  |  | 1,594 |  |  |  | 3,750 |  |  |  | (57 | )% |  |  | 2,632 |  |  |  | 6,132 |  |  |  | (57 | )%
Consolidated |  |  | 14,406 |  |  |  | 23,096 |  |  |  | (38 | )% |  |  | 26,555 |  |  |  | 40,120 |  |  |  | (34 | )%
Corporate expenses |  |  | 12,042 |  |  |  | 8,520 |  |  |  | 41 | % |  |  | 22,544 |  |  |  | 17,244 |  |  |  | 31 | %
Change in fair value of contingent consideration |  |  | 1,123 |  |  |  | 976 |  |  |  | 15 | % |  |  | (2,942 | ) |  |  | 6,076 |  |  | * |
Foreign currency (gain) loss |  |  | 697 |  |  |  | 993 |  |  |  | (30 | )% |  |  | (259 | ) |  |  | 146 |  |  | * |
Other operating (gain) loss |  |  | - |  |  |  | (834 | ) |  |  | (100 | )% |  |  | - |  |  |  | (953 | ) |  |  | (100 | )%
Operating income (loss) |  |  | 544 |  |  |  | 13,441 |  |  |  | (96 | )% |  |  | 7,212 |  |  |  | 17,607 |  |  |  | (59 | )%
Interest expense |  | $ | (4,306 | ) |  | $ | (2,334 | ) |  |  | 84 | % |  | $ | (8,334 | ) |  | $ | (4,170 | ) |  |  | 100 | %
Interest income |  |  | 1,037 |  |  |  | 722 |  |  |  | 44 | % |  |  | 1,897 |  |  |  | 1,128 |  |  |  | 68 | %
Dividend income |  |  | 14 |  |  |  | 11 |  |  |  | 27 | % |  |  | 32 |  |  |  | 14 |  |  |  | 129 | %
Realized gain (loss) on marketable securities |  |  | (29 | ) |  |  | - |  |  | * |  |  |  | (61 | ) |  |  | - |  |  | * |
Gain (loss) on debt extinguishment |  |  | - |  |  |  | - |  |  | * |  |  |  | (1,556 | ) |  |  | - |  |  | * |
Income (loss) before income taxes |  |  | (2,740 | ) |  |  | 11,840 |  |  |  | (123 | )% |  |  | (810 | ) |  |  | 14,579 |  |  |  | (106 | )%
Capital expenditures |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Digital |  | $ | 1,370 |  |  | $ | 1,092 |  |  |  |  |  | $ | 2,481 |  |  | $ | 1,861 |  |  |  |
Television |  |  | 2,555 |  |  |  | 676 |  |  |  |  |  |  | 6,875 |  |  |  | 1,136 |  |  |  |
Audio |  |  | 2,371 |  |  |  | 123 |  |  |  |  |  |  | 5,490 |  |  |  | 411 |  |  |  |
Consolidated |  | $ | 6,296 |  |  | $ | 1,891 |  |  |  |  |  | $ | 14,846 |  |  | $ | 3,408 |  |  |  |
|  | June 30, |  |  | December 31, |  |  |  |  |  |  |  |  |  |  |  |  |
Total assets |  | 2023 |  |  | 2022 |  |  |  |  |  |  |  |  |  |  |  |  |
Digital |  |  | 399,474 |  |  |  | 408,027 |  |  |  |  |  |  |  |  |  |  |  |  |
Television |  |  | 356,282 |  |  |  | 363,904 |  |  |  |  |  |  |  |  |  |  |  |  |
Audio |  |  | 109,400 |  |  |  | 108,910 |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  | $ | 865,156 |  |  | $ | 880,841 |  |  |  |  |  |  |  |  |  |  |  |  |
* Percentage not meaningful.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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