Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 10, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | EVC | |
Entity Registrant Name | ENTRAVISION COMMUNICATIONS CORP | |
Entity Central Index Key | 0001109116 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Class A common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 61,137,147 | |
Class B common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 14,927,613 | |
Class U common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 9,352,729 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 52,003 | $ 46,733 |
Marketable securities | 122,570 | 132,424 |
Restricted cash | 732 | 732 |
Trade receivables, (including related parties of $4,752 and $4,530) net of allowance for doubtful accounts of $3,285 and $3,395 | 65,745 | 79,308 |
Assets held for sale | 1,179 | 1,179 |
Prepaid expenses and other current assets (including related parties of $274 and $274) | 12,006 | 10,672 |
Total current assets | 254,235 | 271,048 |
Property and equipment, net of accumulated depreciation of $185,138 and $187,375 | 69,455 | 64,939 |
Intangible assets subject to amortization, net of accumulated amortization of $95,475 and $93,793 (including related parties of $8,245 and $8,327) | 20,916 | 22,598 |
Intangible assets not subject to amortization | 254,598 | 254,598 |
Goodwill | 74,225 | 74,292 |
Operating leases right of use asset | 44,070 | |
Other assets | 2,689 | 2,934 |
Total assets | 720,188 | 690,409 |
Current liabilities | ||
Current maturities of long-term debt | 3,000 | 3,000 |
Accounts payable and accrued expenses (including related parties of $2,102 and $1,948) | 44,853 | 51,034 |
Operating lease liabilities | 10,599 | |
Total current liabilities | 58,452 | 54,034 |
Long-term debt, less current maturities, net of unamortized debt issuance costs of $2,611 and $2,709 | 239,889 | 240,541 |
Long-term operating lease liabilities | 40,099 | |
Other long-term liabilities | 10,383 | 16,418 |
Deferred income taxes | 47,635 | 46,684 |
Total liabilities | 396,458 | 357,677 |
Commitments and contingencies (note 5) | ||
Stockholders' equity | ||
Additional paid-in capital | 851,080 | 862,299 |
Accumulated deficit | (526,740) | (528,164) |
Accumulated other comprehensive income (loss) | (619) | (1,412) |
Total stockholders' equity | 323,730 | 332,732 |
Total liabilities and stockholders' equity | 720,188 | 690,409 |
Class A common stock | ||
Stockholders' equity | ||
Common stock | 6 | 6 |
Class B common stock | ||
Stockholders' equity | ||
Common stock | 2 | 2 |
Class U common stock | ||
Stockholders' equity | ||
Common stock | $ 1 | $ 1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Trade receivables, related parties | $ 4,752 | $ 4,530 |
Trade receivables, allowance for doubtful accounts | 3,285 | 3,395 |
Prepaid expenses and other current assets | 12,006 | 10,672 |
Property and equipment, accumulated depreciation | 185,138 | 187,375 |
Accumulated amortization of Intangible assets | 95,475 | 93,793 |
Intangible assets subject to amortization, net | 20,916 | 22,598 |
Accounts payable and accrued expenses | 44,853 | 51,034 |
Unamortized debt issuance costs | 2,611 | 2,709 |
Related Parties | ||
Prepaid expenses and other current assets | 274 | 274 |
Intangible assets subject to amortization, net | 8,245 | 8,327 |
Accounts payable and accrued expenses | $ 2,102 | $ 1,948 |
Class A common stock | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 260,000,000 | 260,000,000 |
Common stock, shares issued | 61,137,147 | 63,210,531 |
Common stock, shares outstanding | 61,137,147 | 63,210,531 |
Class B common stock | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 14,927,613 | 14,927,613 |
Common stock, shares outstanding | 14,927,613 | 14,927,613 |
Class U common stock | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 9,352,729 | 9,352,729 |
Common stock, shares outstanding | 9,352,729 | 9,352,729 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net Revenue | $ 64,680 | $ 66,838 |
Expenses: | ||
Direct operating expenses (including related parties of $1,962 and $2,048) (including non-cash stock-based compensation of $134 and $216) | 28,930 | 31,033 |
Selling, general and administrative expenses | 13,814 | 13,294 |
Corporate expenses (including non-cash stock-based compensation of $666 and $1,033) | 6,894 | 5,975 |
Depreciation and amortization (includes direct operating of $2,494 and $2,536; selling, general and administrative of $1,269 and $1,313; and corporate of $153 and $90) (including related parties of $308 and $307) | 3,916 | 3,939 |
Change in fair value contingent consideration | 359 | 2,100 |
Foreign currency (gain) loss | 132 | 213 |
Other operating (gain) loss | (1,996) | (22) |
Operating income (loss) | 4,989 | (319) |
Interest expense | (3,490) | (3,398) |
Interest income | 919 | 913 |
Dividend income | 255 | 128 |
Income (loss) before income taxes | 2,673 | (2,676) |
Income tax benefit (expense) | (1,093) | 930 |
Income (loss) before equity in net income (loss) of nonconsolidated affiliate | 1,580 | (1,746) |
Equity in net income (loss) of nonconsolidated affiliate, net of tax | (156) | (62) |
Net income (loss) | $ 1,424 | $ (1,808) |
Basic and diluted earnings per share: | ||
Net income (loss) per share, basic and diluted | $ 0.02 | $ (0.02) |
Cash dividends declared per common share | $ 0.05 | $ 0.05 |
Weighted average common shares outstanding, basic | 86,101,741 | 90,319,092 |
Weighted average common shares outstanding, diluted | 87,152,987 | 90,319,092 |
Digital Media | ||
Net Revenue | $ 14,472 | $ 18,244 |
Expenses: | ||
Cost of revenue | 7,642 | 10,625 |
Direct operating expenses (including related parties of $1,962 and $2,048) (including non-cash stock-based compensation of $134 and $216) | 4,495 | 4,809 |
Selling, general and administrative expenses | 3,225 | 2,716 |
Depreciation and amortization (includes direct operating of $2,494 and $2,536; selling, general and administrative of $1,269 and $1,313; and corporate of $153 and $90) (including related parties of $308 and $307) | $ 1,324 | $ 1,116 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Direct operating expenses | $ 28,930 | $ 31,033 |
Non-cash stock-based compensation | 800 | 1,249 |
Depreciation and amortization | 3,916 | 3,939 |
Related Parties | ||
Direct operating expenses | 1,962 | 2,048 |
Depreciation and amortization | 308 | 307 |
Direct Operating Expenses | ||
Non-cash stock-based compensation | 134 | 216 |
Depreciation and amortization | 2,494 | 2,536 |
Corporate Expenses | ||
Non-cash stock-based compensation | 666 | 1,033 |
Depreciation and amortization | 153 | 90 |
Selling, General and Administrative Expenses | ||
Depreciation and amortization | $ 1,269 | $ 1,313 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income (loss) | $ 1,424 | $ (1,808) |
Other comprehensive income (loss), net of tax: | ||
Change in foreign currency translation | 30 | 290 |
Change in fair value of available for sale securities | 763 | (1,239) |
Total other comprehensive income (loss) | 793 | (949) |
Comprehensive income (loss) | $ 2,217 | $ (2,757) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Class A common stock | Class B common stock | Class U common stock | Common StockClass A common stock | Common StockClass B common stock | Common StockClass U common stock | Treasury Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) |
Balance, Beginning at Dec. 31, 2017 | $ 348,275 | $ 7 | $ 2 | $ 1 | $ 888,650 | $ (540,325) | $ (60) | ||||
Balance, Beginning, Shares at Dec. 31, 2017 | 66,069,325 | 14,927,613 | 9,352,729 | ||||||||
Issuance of common stock upon exercise of stock options or awards of restricted stock units, Shares | 17,356 | ||||||||||
Tax payments related to shares withheld for share-based compensation plans | (43) | (43) | |||||||||
Stock-based compensation expense | 1,249 | 1,249 | |||||||||
Repurchase of Class A common stock | (2,402) | (2,402) | |||||||||
Repurchase of Class A common stock, Shares | (500,587) | 500,587 | |||||||||
Retirement of treasury stock | 0 | ||||||||||
Retirement of treasury stock, Shares | (500,587) | ||||||||||
Dividends paid | (4,518) | (4,518) | |||||||||
Change in fair value of marketable securities | (1,239) | (1,239) | |||||||||
Foreign currency translation gain (loss) | 290 | 290 | |||||||||
Net income | (1,808) | (1,808) | |||||||||
Balance, Ending at Mar. 31, 2018 | 339,804 | $ 7 | $ 2 | $ 1 | 882,936 | (542,133) | (1,009) | ||||
Balance, Ending, Shares at Mar. 31, 2018 | 65,586,094 | 14,927,613 | 9,352,729 | ||||||||
Balance, Beginning at Dec. 31, 2018 | 332,732 | $ 6 | $ 2 | $ 1 | 862,299 | (528,164) | (1,412) | ||||
Balance, Beginning, Shares at Dec. 31, 2018 | 63,210,531 | 14,927,613 | 9,352,729 | 63,210,531 | 14,927,613 | 9,352,729 | |||||
Tax payments related to shares withheld for share-based compensation plans | (42) | (42) | |||||||||
Tax payments related to shares withheld for share-based compensation plans, shares | 25,059 | ||||||||||
Stock-based compensation expense | 800 | 800 | |||||||||
Repurchase of Class A common stock | (7,706) | $ (7,700) | (7,706) | ||||||||
Repurchase of Class A common stock, Shares | (2,100,000) | (2,098,443) | 2,098,443 | ||||||||
Retirement of treasury stock | 0 | ||||||||||
Retirement of treasury stock, Shares | (2,098,443) | ||||||||||
Dividends paid | (4,271) | (4,271) | |||||||||
Change in fair value of marketable securities | 763 | 763 | |||||||||
Foreign currency translation gain (loss) | 30 | 30 | |||||||||
Net income | 1,424 | 1,424 | |||||||||
Balance, Ending at Mar. 31, 2019 | $ 323,730 | $ 6 | $ 2 | $ 1 | $ 851,080 | $ (526,740) | $ (619) | ||||
Balance, Ending, Shares at Mar. 31, 2019 | 61,137,147 | 14,927,613 | 9,352,729 | 61,137,147 | 14,927,613 | 9,352,729 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 1,424 | $ (1,808) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 3,916 | 3,939 |
Deferred income taxes | 470 | (1,014) |
Non-cash interest | 251 | 124 |
Amortization of syndication contracts | 124 | 176 |
Payments on syndication contracts | (135) | (186) |
Equity in net (income) loss of nonconsolidated affiliate | 156 | 62 |
Non-cash stock-based compensation | 800 | 1,249 |
(Gain) loss on disposal of property and equipment | 86 | |
Changes in assets and liabilities: | ||
(Increase) decrease in accounts receivable | 13,657 | 11,043 |
(Increase) decrease in prepaid expenses and other assets | 869 | (3,981) |
Increase (decrease) in accounts payable, accrued expenses and other liabilities | (7,311) | (5,977) |
Net cash provided by operating activities | 14,307 | 3,627 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (6,072) | (3,030) |
Purchases of intangible assets | (3,153) | |
Purchases of marketable securities | (159,403) | |
Proceeds from marketable securities | 10,721 | |
Purchases of investments | (200) | |
Net cash used in investing activities | 4,449 | (165,586) |
Cash flows from financing activities: | ||
Tax payments related to shares withheld for share-based compensation plans | (751) | (2,227) |
Payments on long-term debt | (750) | (750) |
Dividends paid | (4,271) | (4,518) |
Repurchase of Class A common stock | (7,706) | (2,402) |
Net cash used in financing activities | (13,478) | (9,897) |
Effect of exchange rates on cash, cash equivalents and restricted cash | (8) | (5) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 5,270 | (171,861) |
Cash, cash equivalents and restricted cash: | ||
Beginning | 47,465 | 261,854 |
Ending | 52,735 | 89,993 |
Cash payments for: | ||
Interest | 3,239 | 3,274 |
Income taxes | 623 | 84 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Capital expenditures financed through accounts payable, accrued expenses and other liabilities | 1,460 | 870 |
Contingent consideration included in accounts payable, accrued expenses and other liabilities | $ 8,478 | $ 14,181 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | 1. BASIS OF PRESENTATION Presentation The consolidated financial statements included herein have been prepared by Entravision Communications Corporation (the “Company”), pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted pursuant to such rules and regulations. These consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2018 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. The unaudited information contained herein has been prepared on the same basis as the Company’s audited consolidated financial statements and, in the opinion of the Company’s management, includes all adjustments (consisting of only normal recurring adjustments) necessary for a fair presentation of the information for the periods presented. The interim results presented herein are not necessarily indicative of the results of operations that may be expected for the full fiscal year ending December 31, 2019 or any other future period. Certain amounts in consolidated financial statements and notes to the financial statements have been reclassified to conform to current period presentation. |
The Company and Significant Acc
The Company and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
The Company and Significant Accounting Policies | 2. THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES Nature of Business The Company is a leading global media company that, through its television and radio segments, reaches and engages U.S. Hispanics across acculturation levels and media channels. Additionally, the Company’s digital segment, located primarily in Spain, Mexico, Argentina and other countries in Latin America, reaches a global market. Entravision’s operations encompass integrated marketing and media solutions, comprised of television, radio, and digital properties and data analytics services. The Company’s management has determined that the Company operates in three reportable segments as of March 31, 2019, based upon the type of advertising medium, which segments are television broadcasting, radio broadcasting, and digital media. As of March 31, 2019, the Company owns and/or operates 55 primary television stations located primarily in California, Colorado, Connecticut, Florida, Kansas, Massachusetts, Nevada, New Mexico, Texas and Washington, D.C. The Company’s television operations comprise the largest affiliate group of both the top-ranked primary television network of Univision Communications Inc. (“Univision”) and Univision’s UniMás network. The television broadcasting segment includes revenue generated from advertising, retransmission consent agreements and the monetization of the Company’s spectrum assets. Radio operations consist of 49 operational radio stations, 38 FM and 11 AM, in 16 markets located in Arizona, California, Colorado, Florida, Nevada, New Mexico and Texas. Entravision also operates Entravision Solutions as its national sales representation division, through which it sells advertisements and syndicate radio programming to more than 100 markets across the United States. The Company operates a proprietary technology and data platform that delivers digital advertising in various advertising formats that allows advertisers to reach audiences across a wide range of Internet-connected devices on its 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. Restricted Cash As of March 31, 2019 and December 31, 2018, the Company’s balance sheet includes $0.7 million in restricted cash, which was deposited into a separate account as collateral for the Company’s letters of credit. Related Party Substantially all of the Company’s stations are Univision- or UniMás-affiliated television stations. The Company’s network affiliation agreements with Univision provide certain of its owned stations the exclusive right to broadcast Univision’s primary network and UniMás network programming in their respective markets. Under the network affiliation agreement, the Company retains the right to sell no less than four minutes per hour of the available advertising time on stations that broadcast Univision network programming, and the right to sell approximately four and a half minutes per hour of the available advertising time on stations that broadcast UniMás network programming, subject to adjustment from time to time by Univision. Under the network affiliation agreement, Univision acts as the Company’s exclusive third-party sales representative for the sale of certain national advertising on the Company’s Univision- and UniMás-affiliate television stations, and it pays certain sales representation fees to Univision relating to sales of all advertising for broadcast on the Company’s Univision- and UniMás-affiliate television stations. During each of the three-month periods ended March 31, 2019 and 2018, the amount the Company paid Univision in this capacity was $2.0 million. The Company also generates revenue under two marketing and sales agreements with Univision, which gives the Company the right to manage the marketing and sales operations of Univision-owned Univision affiliates in six markets – Albuquerque, Boston, Denver, Orlando, Tampa and Washington, D.C. Under the Company’s proxy agreement with Univision, the Company grants Univision the right to negotiate the terms of retransmission consent agreements for its Univision- and UniMás-affiliated television station signals. Among other things, the proxy agreement provides terms relating to compensation to be paid to the Company by Univision with respect to retransmission consent agreements entered into with multichannel video programming distributors, (“MVPDs”). As of March 31, 2019, the amount due to the Company from Univision was $4.8 million related to the agreements for the carriage of its Univision and UniMás-affiliated television station signals. During the three-month periods ended March 31, 2019 and 2018, retransmission consent revenue accounted for approximately $8.8 million and $8.9 million, respectively, of which $6.7 million and $7.5 million, respectively, relate to the Univision proxy agreement. The term of the proxy agreement extends with respect to any MVPD for the length of the term of any retransmission consent agreement in effect before the expiration of the proxy agreement. Univision currently owns approximately 11% of the Company’s common stock on a fully-converted basis. The Class U common stock held by Univision has limited voting rights and does not include the right to elect directors. As the holder of all of the Company’s issued and outstanding Class U common stock, so long as Univision holds a certain number of shares, the Company will not, without the consent of Univision, merge, consolidate or enter into another business combination, dissolve or liquidate the Company or dispose of any interest in any Federal Communications Commission, or FCC, license for any of its Univision-affiliated television stations, among other things. Each share of Class U common stock is automatically convertible into one share of Class A common stock (subject to adjustment for stock splits, dividends or combinations) in connection with any transfer to a third party that is not an affiliate of Univision. Stock-Based Compensation The Company measures all stock-based awards using a fair value method and recognizes the related stock-based compensation expense in the consolidated financial statements over the requisite service period. As stock-based compensation expense recognized in the Company’s consolidated financial statements is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. Stock-based compensation expense related to grants of stock options and restricted stock units was $0.8 million and $1.2 million for the three-month periods ended March 31, 2019 and 2018, respectively. Stock Options Stock-based compensation expense related to stock options is based on the fair value on the date of grant using the Black-Scholes option pricing model and is amortized over the vesting period, generally between 1 to 4 years. As of March 31, 2019, there was de minimis stock-based compensation expense related to grants of stock options. All grants of stock options have been fully expensed. Restricted Stock Units Stock-based compensation expense related to restricted stock units is based on the fair value of the Company’s stock price on the date of grant and is amortized over the vesting period, generally between 1 to 4 years. As of March 31, 2019, there was approximately $3.4 million of total unrecognized compensation expense related to grants of restricted stock units that is expected to be recognized over a weighted-average period of 1.5 years. Income (Loss) Per Share The following table illustrates the reconciliation of the basic and diluted income (loss) per share computations required by Accounting Standards Codification (ASC) 260-10, “Earnings per Share” (in thousands, except share and per share data): Three-Month Period Ended March 31, 2019 2018 Basic earnings per share: Numerator: Net income (loss) $ 1,424 $ (1,808 ) Denominator: Weighted average common shares outstanding 86,101,741 90,319,092 Per share: Net income (loss) per share $ 0.02 $ (0.02 ) Diluted earnings per share: Numerator: Net income (loss) $ 1,424 $ (1,808 ) Denominator: Weighted average common shares outstanding 86,101,741 90,319,092 Dilutive securities: Stock options and restricted stock units 1,051,246 - Diluted shares outstanding 87,152,987 90,319,092 Per share: Net income (loss) per share $ 0.02 $ (0.02 ) Basic income (loss) per share is computed as net income (loss) divided by the weighted average number of shares outstanding for the period. Diluted income (loss) per share reflects the potential dilution, if any, that could occur from shares issuable through stock options and restricted stock awards. For the three-month period ended March 31, 2019, a total of 43,534 shares of dilutive securities were not included in the computation of diluted income per share because the exercise prices of the dilutive securities were greater than the average market price of the common shares. For the three-month period ended March 31, 2018, all dilutive securities have been excluded as their inclusion would have had an antidilutive effect on loss per share. The number of securities whose conversion would result in an incremental number of shares that would be included in determining the weighted average shares outstanding for diluted earnings per share if their effect was not antidilutive was 1,276,642 Treasury Stock On July 13, 2017, the Board of Directors approved a share repurchase of up to $15.0 million of the Company’s outstanding common stock. Board of Directors approved the repurchase of up to an additional $15.0 million of the Company’s Class A common stock, for a total repurchase authorization of up to $30.0 million. Under the share repurchase program, the Company is authorized to purchase shares from time to time through open market purchases or negotiated purchases, subject to market conditions and other factors Treasury stock is included as a deduction from equity in the Stockholders’ Equity section of the Consolidated Balance Sheets. Shares repurchased pursuant to the Company’s share repurchase program are retired during the same calendar year. The Company repurchased 2.1 million shares of Class A common stock at an average price of $3.65, for an aggregate purchase price of approximately $7.7 million, during the three-month period ended March 31, 2019. As of March 31, 2019, the Company has repurchased a total of approximately 6.6 million shares of Class A common stock, for an aggregate purchase price of approximately $26.8 million, or an average price per share of $4.05, since the beginning of the share repurchase program. All such repurchased shares were retired as of March 31, 2019. 2017 Credit Facility On November 30, 2017 (the “Closing Date”), the Company entered into its 2017 Credit Facility pursuant to the 2017 Credit Agreement. The 2017 Credit Facility consists of a $300.0 million senior secured Term Loan B Facility (the “Term Loan B Facility”), which was drawn in full on the Closing Date. In addition, the 2017 Credit Facility provides that the Company may increase the aggregate principal amount of the 2017 Credit Facility by up to an additional $100.0 million plus the amount that would result in its first lien net leverage ratio (as such term is used in the 2017 Credit Agreement) not exceeding 4.0 to 1.0, subject to the Company satisfying certain conditions. Borrowings under the Term Loan B Facility were used on the Closing Date to (a) repay in full all of the Company’s and its subsidiaries’ outstanding obligations under the Company’s previous credit facility (“2013 Credit Facility”) and to terminate the 2013 Credit Agreement, (b) pay fees and expenses in connection with the 2017 Credit Facility, and (c) for general corporate purposes. The 2017 Credit Facility is guaranteed on a senior secured basis by certain of its existing and future wholly-owned domestic subsidiaries, and is secured on a first priority basis by the Company’s and those subsidiaries’ assets. The Company’s borrowings under the 2017 Credit Facility bear interest on the outstanding principal amount thereof from the date when made at a rate per annum equal to either: (i) the Eurodollar Rate (as defined in the 2017 Credit Agreement) plus 2.75%; or (ii) the Base Rate (as defined in the 2017 Credit Agreement) plus 1.75%. The Term Loan B Facility expires on November 30, 2024 (the “Maturity Date”) In the event the Company engages in a transaction that has the effect of reducing the yield of any loans outstanding under the Term Loan B Facility within six months of the Closing Date, the Company will owe 1% of the amount of the loans so repriced or replaced to the Lenders thereof (such fee, the “Repricing Fee”). Other than the Repricing Fee, the amounts outstanding under the 2017 Credit Facility may be prepaid at the Company’s option without premium or penalty, provided that certain limitations are observed, and subject to customary breakage fees in connection with the prepayment of a Eurodollar rate loan. The principal amount of the Term Loan B Facility shall be paid in installments on the dates and in the respective amounts set forth in the 2017 Credit Agreement, with the final balance due on the Maturity Date. Subject to certain exceptions, the 2017 Credit Facility contains covenants that limit the ability of the Company and its restricted subsidiaries to, among other things: • incur liens on the Company’s property or assets; • make certain investments; • incur additional indebtedness; • consummate any merger, dissolution, liquidation, consolidation or sale of substantially all assets; • dispose of certain assets; • make certain restricted payments; • make certain acquisitions; • enter into substantially different lines of business; • enter into certain transactions with affiliates; • use loan proceeds to purchase or carry margin stock or for any other prohibited purpose; • change or amend the terms of the Company’s organizational documents or the organization documents of certain restricted subsidiaries in a materially adverse way to the lenders, or change or amend the terms of certain indebtedness; • enter into sale and leaseback transactions; • make prepayments of any subordinated indebtedness, subject to certain conditions; and • change the Company’s fiscal year, or accounting policies or reporting practices. The 2017 Credit Facility also provides for certain customary events of default, including the following: • default for three (3) business days in the payment of interest on borrowings under the 2017 Credit Facility when due; • default in payment when due of the principal amount of borrowings under the 2017 Credit Facility; • failure by the Company or any subsidiary to comply with the negative covenants and certain other covenants relating to maintaining the legal existence of the Company and certain of its restricted subsidiaries and compliance with anti-corruption laws; • failure by the Company or any subsidiary to comply with any of the other agreements in the 2017 Credit Agreement and related loan documents that continues for thirty (30) days (or ten (10) days in the case of failure to comply with covenants related to inspection rights of the administrative agent and lenders and permitted uses of proceeds from borrowings under the 2017 Credit Facility) after the Company’s officers first become aware of such failure or first receive written notice of such failure from any lender; • default in the payment of other indebtedness if the amount of such indebtedness aggregates to $15.0 million or more, or failure to comply with the terms of any agreements related to such indebtedness if the holder or holders of such indebtedness can cause such indebtedness to be declared due and payable; • certain events of bankruptcy or insolvency with respect to the Company or any significant subsidiary; • final judgment is entered against the Company or any restricted subsidiary in an aggregate amount over $15.0 million, and either enforcement proceedings are commenced by any creditor or there is a period of 30 consecutive days during which the judgment remains unpaid and no stay is in effect; • any material provision of any agreement or instrument governing the 2017 Credit Facility ceases to be in full force and effect; and • any revocation, termination, substantial and adverse modification, or refusal by final order to renew, any media license, or the requirement (by final non-appealable order) to sell a television or radio station, where any such event or failure is reasonably expected to have a material adverse effect. The Term Loan B Facility does not contain any financial covenants. In connection with the Company entering into the 2017 Credit Agreement, the Company and its restricted subsidiaries also entered into a Security Agreement, pursuant to which the Company and the Credit Parties each granted a first priority security interest in the collateral securing the 2017 Credit Facility for the benefit of the lenders under the 2017 Credit Facility. The carrying amount of the Term Loan B Facility as of March 31, 2019 was was Fair Value Measurements The Company measures certain financial assets and liabilities at fair value on a recurring basis. Fair value is the price the Company would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. ASC 820, “Fair Value Measurements and Disclosures”, defines and establishes a framework for measuring fair value and expands disclosures about fair value measurements. In accordance with ASC 820, the Company has categorized its financial assets and liabilities, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy as set forth below. Level 1 – Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the company has the ability to access at the measurement date. Level 2 – Assets and liabilities whose values are based on quoted prices for similar attributes in active markets; quoted prices in markets where trading occurs infrequently; and inputs other than quoted prices that are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 – Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheets (in millions): March 31, 2019 Total Fair Value and Carrying Value on Balance Fair Value Measurement Category (in millions) Sheet Level 1 Level 2 Level 3 Assets: Money market account $ 36.7 $ - $ 36.7 $ - Certificates of deposit $ 7.6 $ - $ 7.6 $ - Corporate bonds $ 115.0 $ - $ 115.0 $ - Liabilities: Contingent Consideration $ 8.5 $ - $ - $ 8.5 December 31, 2018 Total Fair Value and Carrying Value on Balance Fair Value Measurement Category Sheet Level 1 Level 2 Level 3 Assets: Money market account $ 34.6 $ - $ 34.6 $ - Certificates of deposit $ 8.2 $ - $ 8.2 $ - Corporate bonds $ 124.2 $ - $ 124.2 $ - Liabilities: Contingent Consideration $ 8.1 $ - $ - $ 8.1 As of March 31, 2019, the Company held investments in a money market fund, certificates of deposit, and corporate bonds. All certificates of deposit are within the current FDIC insurance limits and all corporate bonds are investment grade. The Company’s available for sale securities are comprised of certificates of deposit and bonds. These securities are valued using quoted prices for similar attributes in active markets (Level 2). Since these investments are classified as available for sale, they are recorded at their fair market value within Cash and cash equivalents and Marketable securities in the Unaudited Consolidated Balance Sheet and their unrealized gains or losses are included in other comprehensive income. As of March 31, 2019, the following table summarizes the amortized cost and the unrealized (gains) losses of the available for sale securities (in thousands): Certificates of Deposit Corporate Bonds Amortized Cost Unrealized (gains) losses Amortized Cost Unrealized (gains) losses Due within a year $ 3,360 $ (3 ) $ 35,056 $ (48 ) Due after one year through five years 4,202 1 80,268 (266 ) Total $ 7,562 $ (2 ) $ 115,324 $ (314 ) The Company periodically reviews its available for sale securities for other-than-temporary impairment. For the three-month period ended March 31, 2019, the Company did not consider any of its securities to be other-than-temporarily impaired and, accordingly, did not recognize any impairment losses. Included in interest income for the three-month period ended March 31, 2019 was interest income related to the Company’s available-for-sale securities of $0.9 million. Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) includes foreign currency translation adjustments and changes in the fair value of available for sale securities. The following table provides a roll-forward of accumulated other comprehensive income (loss) for the three-month period ended March 31, 2019 (in millions): Foreign Currency Translation Marketable Securities Total Accumulated other comprehensive income (loss) as of December 31, 2018 $ (0.4 ) $ (1.0 ) $ (1.4 ) Other comprehensive income (loss) - 1.0 1.0 Income tax (expense) benefit - (0.2 ) (0.2 ) Other comprehensive income (loss), net of tax - 0.8 0.8 Accumulated other comprehensive income (loss) as of March 31, 2019 (0.4 ) (0.2 ) (0.6 ) Foreign Currency Based on recent data reported by the International Monetary Fund, Argentina has been identified as a country with a highly inflationary economy. According to U.S. GAAP, a registrant should apply highly inflationary accounting in the first reporting period after such determination. Therefore, the Company transitioned the accounting for its Argentine operations to highly inflationary status as of July 1, 2018 and, commencing that date, changed the functional currency from the Argentine Peso to U.S. dollar. Cost of Revenue Cost of revenue related to the Company’s digital segment consists primarily of the costs of online media acquired from third-party publishers. Assets Held For Sale Assets are classified as held for sale when the carrying value is expected to be recovered through a sale rather than through their continued use and all of the necessary classification criteria have been met. Assets held for sale are recorded at the lower of their carrying value or estimated fair value less selling costs and classified as current assets. Depreciation is not recorded on assets classified as held for sale. During the second quarter of 2018, the Company relocated the operations of two of its television stations in the Palm Springs, California market and management approved the sale of the vacated building. The building and related improvements met the criteria for classification as assets held for sale and their carrying value is presented separately in the consolidated balance sheet. Assets held for sale are classified as current assets as management believes the sale will be completed within one year. Recent Accounting Pronouncements In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326), Newly Adopted Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) The Company adopted this ASU in Q1 2019. As permitted under the transition guidance of the standard, the Company applied the guidance on a prospective basis as of the adoption date. As a result, prior period amounts were not adjusted and continue to be reported in accordance with accounting guidance under ASC 840. The Company elected the package of practical expedients such that the Company did not reassess whether any expired or existing contracts are or contain leases. In addition, the Company did not reassess prior conclusions reached for lease classification and did not reassess initial direct costs for existing leases. Based on the Company’s assessment, the adoption of the guidance resulted in a material impact on the Company’s consolidated balance sheet. However, the impact to the Company’s results of operations and cash flows through March 31, 2019 are not considered material. As of the adoption date, the Company recognized right-of-use (“ROU”) assets of $45.8 million and lease liabilities of $52.4 million. The difference between the ROU assets and lease liabilities is attributed to deferred rent and lease incentives which were combined and presented net within the ROU assets. Refer to Note 4 for additional information. In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Non-employee Share-based Payment Accounting In August 2018, the SEC issued a final rule to amend certain disclosure requirements that were redundant, duplicative, overlapping or superseded by other SEC disclosure requirements, US GAAP or IFRS.2 The amendments generally eliminated or otherwise reduced certain disclosure requirements of various SEC rules and regulations. However, in some cases, the amendments require additional information to be disclosed, including changes in stockholders’ equity in interim periods. The Company adopted the rule in Q1 2019 and included a statement of stockholders’ equity in our Form 10-Q. |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenues | 3. REVENUES Revenue Recognition Revenues are recognized when control of the promised services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. Broadcast Advertising. Television and radio revenue related to the sale of advertising is recognized at the time of broadcast. Broadcast advertising rates are fixed based on each medium’s ability to attract audiences in demographic groups targeted by advertisers and rates can vary based on the time of day and ratings of the programming airing in that day part. Digital Advertising. Revenue from digital advertising primarily consists of two types: (1) Display advertisements on websites and mobile applications that are sold based on a cost-per-thousand impressions delivered (typically referred to as “CPM”). These impressions are delivered through the Company’s websites and through third party publishers either through direct relationships with the publishers or through digital advertising exchanges. (2) Performance driven advertising whereby the customer engages the Company to drive consumers to perform an action such as the download of a mobile application, the installation of an application, or the first use of an application (typically referred to cost per action “CPA” or cost per installation “CPI”). Broadcast and digital advertising revenue is recognized over time in a series as a single performance obligation as the ad, impression or performance advertising is delivered per the insertion order. The Company applies the practical expedient to recognize revenue for each distinct advertising service delivered at the amount the Company has the right to invoice, which corresponds directly to the value a customer has received relative to the Company’s performance. Contracts with customers are short term in nature and billing occurs on a monthly basis with payment due in 30 days. Value added taxes collected concurrent with advertising revenue producing activities are excluded from revenue. Cash payments received prior to services rendered result in deferred revenue, which is then recognized as revenue when the advertising time or space is actually provided. Retransmission Consent. The Company generates revenue from retransmission consent agreements that are entered into with multichannel video programming distributors, or MVPDs. The Company grants the MVPDs access to its television station signals so that they may rebroadcast the signals and charge their subscribers for this programming. Payments are received on a monthly basis based on the number of monthly subscribers. Retransmission revenues are considered licenses of functional intellectual property and are recognized over time utilizing the sale-based or usage-based royalty exception. The Company’s performance obligation is to provide the licensee access to our intellectual property. MVPD subscribers receive and consume the content monthly as the television signal is delivered. Spectrum Usage Rights. The Company generates revenue from agreements associated with its television stations’ spectrum usage rights from a variety of sources, including but not limited to agreements with third parties to utilize excess spectrum for the broadcast of their multicast networks; charging fees to accommodate the operations of third parties, including moving channel positions or accepting interference with broadcasting operations; and modifying and/or relinquishing spectrum usage rights while continuing to broadcast through channel sharing or other arrangements. Revenue generated by Spectrum Usage Rights agreements are recognized over the period of the lease or when we have relinquished all or a portion of our spectrum usage rights for a station or have relinquished our rights to operate a station on the existing channel free from interference. Other Revenue. The Company generates other revenues that are related to its broadcast operations which primarily consist of representation fees earned by the Company’s radio national representation firm, talent fees for the Company’s on air personalities, ticket and concession sales for radio events, rent from tenants of the Company’s owned facilities, barter revenue, and revenue generated under joint sales agreements. In the case of representation fees, the Company does not control the distinct service, the commercial advertisement, prior to delivery and therefore recognizes revenue on a net basis. Similarly for joint service agreements, the Company does not own the station providing the airtime and therefore recognizes revenue on a net basis. In the case of talent fees, the on air personality is an employee of the Company and therefore the Company controls the service provided and recognizes revenue gross with an expense for fees paid to the employee. Practical Expedients and Exemptions The Company does not disclose the value of unsatisfied performance obligations when (i) contracts have an original expected length of one year or less, which applies to effectively all advertising contracts, and (ii) variable consideration is a sales-based or usage-based royalty promised in exchange for a license of intellectual property, which applies to retransmission consent revenue. The Company applies the practical expedient to expense contract acquisition costs, such as sales commissions generated either by internal direct sales employees or through third party advertising agency intermediaries, when incurred because the amortization period is one year or less. These costs are recorded within direct operating expenses. Disaggregated Revenue 2019 2018 Broadcast advertising $ 34,708 $ 37,709 Digital advertising 14,472 18,244 Spectrum Usage Rights 5,084 108 Retransmission Consent 8,760 8,853 Other 1,656 1,924 Total revenue $ 64,680 $ 66,838 Contracts are entered into directly with customers or through an advertising agency that represents the customer. Sales of advertising to customers or agencies within a station’s designated market area (“DMA”) are referred to as local revenue, whereas sales from outside the DMA are referred to as national revenue. The following table further disaggregates the Company’s broadcast advertising revenue by sales channel for the three-month periods ended (in thousands): 2019 2018 Local Direct $ 6,055 $ 14,593 Local Agency 13,700 6,916 National Agency 14,953 16,200 Total revenue $ 34,708 $ 37,709 Deferred Revenues The Company records deferred revenues when cash payments are received or due in advance of its performance, including amounts which are refundable. The increase in the deferred revenue balance for the three-month period ended March 31, 2019 is primarily driven by cash payments received or due in advance of satisfying the Company’s performance obligations, offset by revenues recognized that were included in the deferred revenue balance as of December 31, 2018. The Company’s payment terms vary by the type and location of customer and the products or services offered. The term between invoicing and when payment is due is not significant, typically 30 days. For certain customer types, the Company requires payment before the services are delivered to the customer. (in thousands) December 31, 2018 Increase Decrease * March 31, 2019 Deferred revenue $ 2,759 2,338 (2,759 ) $ 2,338 * The amount disclosed in the decrease column reflects revenue that has been recorded in the three-month period ended March 31, 2019. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | 4. LEASES The Company’s leases are considered operating leases and primarily consist of real estate such as office space, broadcasting towers, land and land easements. An ROU asset and lease liability is recognized as of lease commencement date based on the present value of the future minimum lease payments over the lease term. As the implicit rate for operating leases is not readily determinable, the future minimum lease payments were discounted using an incremental borrowing rate. Due to the Company having a centralized treasury function, the Company applied a portfolio approach to discount its domestic lease obligations using its secured publicly traded U.S. dollar denominated debt instruments interpolating the duration of the debt to the remaining lease term. The incremental borrowing rate for international leases is the interest rate that the Company would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. The Company’s operating leases are reflected within the consolidated balance sheet as right-of-use assets with the related liability presented as lease liability, current and lease liability, net of current portion. Lease expense is recognized on a straight-line basis over the lease term. Generally, lease terms include options to renew or extend the lease. Unless the renewal option is considered reasonably certain, the exercise of any such options have been excluded from the calculation of lease liabilities. In addition, as permitted within the guidance, ROU assets and lease liabilities are not recorded for leases within an initial term of one year or less. The Company’s existing leases have remaining terms of less than one year up to 32 years. Certain of the Company’s lease agreements include rental payments based on changes in the CPI. Lease liabilities are not remeasured as a result of changes in the CPI; instead, changes in the CPI are treated as variable lease payments and recognized in the period in which the related obligation was incurred. Lease agreements do not contain any material residual value guarantees or material restrictive covenants. Certain real estate leases include additional costs such as common area maintenance (non-lease component), as well as property insurance and property taxes. These costs were excluded from future minimum lease payments as they are variable payments. As such, these costs were not part of the calculation of ROU assets and lease liabilities associated with operating leases upon transition The following table summarizes the expected future payments related to lease liabilities as of March 31, 2019: (in thousands) 2019 Remainder of 2019 $ 8,017 2020 10,785 2021 8,526 2022 7,176 2023 5,583 2024 and thereafter 31,763 Total minimum payments $ 71,850 Less amounts representing interest (21,150 ) Present value of minimum lease payments $ 50,700 The weighted average remaining lease term and the weighted average discount rate used to calculate the Company’s lease liabilities as of March 31, 2019 were 11.1 years and 6.2%, respectively. The following table summarizes lease payments and supplemental non-cash disclosures for the three-months ended March 31, 2019: (in thousands) Three Months- Ended March 31, 2019 Cash paid for amounts included in lease liabilities: Operating cash flows from operating leases $ 2,800 Non-cash additions to operating lease assets $ 315 The tables below summarize our future minimum rental commitments for operating leases as of December 31, 2018: (in thousands) Amount 2019 $ 10,432 2020 10,677 2021 8,507 2022 7,560 2023 6,137 Thereafter 38,515 $ 81,828 The following table summarizes the components of lease expense for the three months ended March 31, 2019: (in thousands) Amount Operating lease cost $ 2,397 Variable lease cost 421 Short-term lease cost 107 Total lease cost $ 2,925 Lease cost of $0.2 million, $1.3 million and $1.4 million were recorded to corporate expenses, direct operating expenses and selling, general and administrative expenses, respectively. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 5. SEGMENT INFORMATION The Company’s management has determined that the Company operates in three reportable segments as of March 31, 2019, 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 The Company owns and/or operates 55 primary television stations located primarily in California, Colorado, Connecticut, Florida, Kansas, Massachusetts, Nevada, New Mexico, Texas and Washington, D.C. Radio The Company owns and operates 49 radio stations (38 FM and 11 AM) located primarily in Arizona, California, Colorado, Florida, Nevada, New Mexico and Texas. The Company owns and operates a national sales representation division, Entravision Solutions, through which the Company sells advertisements and syndicates radio programming to more than 100 markets across the United States. Digital The Company owns and operates digital operations, offering mobile, digital and other interactive media platforms and services on Internet-connected devices, including local websites and social media, which provide users with news information and other content. 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 and foreign currency (gain) loss. The Company generated 15% and 19% of its revenue outside the United States during the three-month periods ended March 31, 2019 and March 31, 2018, respectively. The Company evaluates the performance of its operating segments based on the following (in thousands): Three-Month Period Ended March 31, % 2019 2018 Change Net revenue Television $ 38,253 $ 34,491 11 % Radio 11,955 14,103 (15 )% Digital 14,472 18,244 (21 )% Consolidated 64,680 66,838 (3 )% Cost of revenue - digital media 7,642 10,625 (28 )% Direct operating expenses Television 14,927 15,550 (4 )% Radio 9,508 10,674 (11 )% Digital 4,495 4,809 (7 )% Consolidated 28,930 31,033 (7 )% Selling, general and administrative expenses Television 5,814 5,972 (3 )% Radio 4,775 4,606 4 % Digital 3,225 2,716 19 % Consolidated 13,814 13,294 4 % Depreciation and amortization Television 2,260 2,204 3 % Radio 332 619 (46 )% Digital 1,324 1,116 19 % Consolidated 3,916 3,939 (1 )% Segment operating profit (loss) Television 15,252 10,765 42 % Radio (2,660 ) (1,796 ) 48 % Digital (2,214 ) (1,022 ) 117 % Consolidated 10,378 7,947 31 % Corporate expenses 6,894 5,975 15 % Change in fair value contingent consideration 359 2,100 (83 )% Foreign currency (gain) loss 132 213 (38 )% Other operating (gain) loss (1,996 ) (22 ) * Operating income (loss) 4,989 (319 ) * Interest expense $ (3,490 ) $ (3,398 ) 3 % Interest income 919 913 1 % Dividend income 255 128 99 % Income (loss) before income taxes 2,673 (2,676 ) * Capital expenditures Television $ 6,341 $ 2,080 Radio 382 81 Digital 119 66 Consolidated $ 6,842 $ 2,227 March 31, December 31, Total assets 2019 2018 Television 507,024 487,929 Radio 137,488 121,020 Digital 75,676 81,460 Consolidated $ 720,188 $ 690,409 * Percentage not meaningful. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 6. COMMITMENTS AND CONTINGENCIES The Company is subject to various outstanding claims and other legal proceedings that may arise in the ordinary course of business. In the opinion of management, any liability of the Company that may arise out of or with respect to these matters will not materially adversely affect the financial position, results of operations or cash flows of the Company. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 7. SUBSEQUENT EVENTS As previously reported in a Current Report on Form 8-K filed with the SEC on May 6, 2019, on April 30, 2019, the Company entered into an amendment to the 2017 Credit Agreement, which became effective on May 1, 2019. Pursuant to this amendment, the lenders waived any events of default that may have arisen under the 2017 Credit Agreement in connection with the Company’s failure to timely deliver audited financial statements for fiscal year 2018, and amended the 2017 Credit Agreement, giving the Company until May 31, 2019 to deliver the 2018 audited financial statements. On May 7, 2019, the Company filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2018, which Annual Report contained the 2018 audited financial statements. By filing its Annual Report on Form 10-K prior to May 31, 2019, the Company believes that it has complied with the affirmative covenants in the amendment to the 2017 Credit Agreement regarding delivery of the 2018 audited financial statements. Pursuant to this amendment, the Company agreed to pay to the lenders consenting to this amendment a fee equal to 0.10% of the aggregate principal amount of the outstanding loans held by such lenders under the 2017 Credit Agreement as of May 1, 2019. This fee totaled approximately $0.2 million. |
The Company and Significant A_2
The Company and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Restricted Cash | Restricted Cash As of March 31, 2019 and December 31, 2018, the Company’s balance sheet includes $0.7 million in restricted cash, which was deposited into a separate account as collateral for the Company’s letters of credit. |
Related Party | Related Party Substantially all of the Company’s stations are Univision- or UniMás-affiliated television stations. The Company’s network affiliation agreements with Univision provide certain of its owned stations the exclusive right to broadcast Univision’s primary network and UniMás network programming in their respective markets. Under the network affiliation agreement, the Company retains the right to sell no less than four minutes per hour of the available advertising time on stations that broadcast Univision network programming, and the right to sell approximately four and a half minutes per hour of the available advertising time on stations that broadcast UniMás network programming, subject to adjustment from time to time by Univision. Under the network affiliation agreement, Univision acts as the Company’s exclusive third-party sales representative for the sale of certain national advertising on the Company’s Univision- and UniMás-affiliate television stations, and it pays certain sales representation fees to Univision relating to sales of all advertising for broadcast on the Company’s Univision- and UniMás-affiliate television stations. During each of the three-month periods ended March 31, 2019 and 2018, the amount the Company paid Univision in this capacity was $2.0 million. The Company also generates revenue under two marketing and sales agreements with Univision, which gives the Company the right to manage the marketing and sales operations of Univision-owned Univision affiliates in six markets – Albuquerque, Boston, Denver, Orlando, Tampa and Washington, D.C. Under the Company’s proxy agreement with Univision, the Company grants Univision the right to negotiate the terms of retransmission consent agreements for its Univision- and UniMás-affiliated television station signals. Among other things, the proxy agreement provides terms relating to compensation to be paid to the Company by Univision with respect to retransmission consent agreements entered into with multichannel video programming distributors, (“MVPDs”). As of March 31, 2019, the amount due to the Company from Univision was $4.8 million related to the agreements for the carriage of its Univision and UniMás-affiliated television station signals. During the three-month periods ended March 31, 2019 and 2018, retransmission consent revenue accounted for approximately $8.8 million and $8.9 million, respectively, of which $6.7 million and $7.5 million, respectively, relate to the Univision proxy agreement. The term of the proxy agreement extends with respect to any MVPD for the length of the term of any retransmission consent agreement in effect before the expiration of the proxy agreement. Univision currently owns approximately 11% of the Company’s common stock on a fully-converted basis. The Class U common stock held by Univision has limited voting rights and does not include the right to elect directors. As the holder of all of the Company’s issued and outstanding Class U common stock, so long as Univision holds a certain number of shares, the Company will not, without the consent of Univision, merge, consolidate or enter into another business combination, dissolve or liquidate the Company or dispose of any interest in any Federal Communications Commission, or FCC, license for any of its Univision-affiliated television stations, among other things. Each share of Class U common stock is automatically convertible into one share of Class A common stock (subject to adjustment for stock splits, dividends or combinations) in connection with any transfer to a third party that is not an affiliate of Univision. |
Stock-Based Compensation | Stock-Based Compensation The Company measures all stock-based awards using a fair value method and recognizes the related stock-based compensation expense in the consolidated financial statements over the requisite service period. As stock-based compensation expense recognized in the Company’s consolidated financial statements is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. Stock-based compensation expense related to grants of stock options and restricted stock units was $0.8 million and $1.2 million for the three-month periods ended March 31, 2019 and 2018, respectively. Stock Options Stock-based compensation expense related to stock options is based on the fair value on the date of grant using the Black-Scholes option pricing model and is amortized over the vesting period, generally between 1 to 4 years. As of March 31, 2019, there was de minimis stock-based compensation expense related to grants of stock options. All grants of stock options have been fully expensed. Restricted Stock Units Stock-based compensation expense related to restricted stock units is based on the fair value of the Company’s stock price on the date of grant and is amortized over the vesting period, generally between 1 to 4 years. As of March 31, 2019, there was approximately $3.4 million of total unrecognized compensation expense related to grants of restricted stock units that is expected to be recognized over a weighted-average period of 1.5 years. |
Income (Loss) Per Share | Income (Loss) Per Share The following table illustrates the reconciliation of the basic and diluted income (loss) per share computations required by Accounting Standards Codification (ASC) 260-10, “Earnings per Share” (in thousands, except share and per share data): Three-Month Period Ended March 31, 2019 2018 Basic earnings per share: Numerator: Net income (loss) $ 1,424 $ (1,808 ) Denominator: Weighted average common shares outstanding 86,101,741 90,319,092 Per share: Net income (loss) per share $ 0.02 $ (0.02 ) Diluted earnings per share: Numerator: Net income (loss) $ 1,424 $ (1,808 ) Denominator: Weighted average common shares outstanding 86,101,741 90,319,092 Dilutive securities: Stock options and restricted stock units 1,051,246 - Diluted shares outstanding 87,152,987 90,319,092 Per share: Net income (loss) per share $ 0.02 $ (0.02 ) Basic income (loss) per share is computed as net income (loss) divided by the weighted average number of shares outstanding for the period. Diluted income (loss) per share reflects the potential dilution, if any, that could occur from shares issuable through stock options and restricted stock awards. For the three-month period ended March 31, 2019, a total of 43,534 shares of dilutive securities were not included in the computation of diluted income per share because the exercise prices of the dilutive securities were greater than the average market price of the common shares. For the three-month period ended March 31, 2018, all dilutive securities have been excluded as their inclusion would have had an antidilutive effect on loss per share. The number of securities whose conversion would result in an incremental number of shares that would be included in determining the weighted average shares outstanding for diluted earnings per share if their effect was not antidilutive was 1,276,642 |
Treasury Stock | Treasury Stock On July 13, 2017, the Board of Directors approved a share repurchase of up to $15.0 million of the Company’s outstanding common stock. Board of Directors approved the repurchase of up to an additional $15.0 million of the Company’s Class A common stock, for a total repurchase authorization of up to $30.0 million. Under the share repurchase program, the Company is authorized to purchase shares from time to time through open market purchases or negotiated purchases, subject to market conditions and other factors Treasury stock is included as a deduction from equity in the Stockholders’ Equity section of the Consolidated Balance Sheets. Shares repurchased pursuant to the Company’s share repurchase program are retired during the same calendar year. The Company repurchased 2.1 million shares of Class A common stock at an average price of $3.65, for an aggregate purchase price of approximately $7.7 million, during the three-month period ended March 31, 2019. As of March 31, 2019, the Company has repurchased a total of approximately 6.6 million shares of Class A common stock, for an aggregate purchase price of approximately $26.8 million, or an average price per share of $4.05, since the beginning of the share repurchase program. All such repurchased shares were retired as of March 31, 2019. |
2017 Credit Facility | 2017 Credit Facility On November 30, 2017 (the “Closing Date”), the Company entered into its 2017 Credit Facility pursuant to the 2017 Credit Agreement. The 2017 Credit Facility consists of a $300.0 million senior secured Term Loan B Facility (the “Term Loan B Facility”), which was drawn in full on the Closing Date. In addition, the 2017 Credit Facility provides that the Company may increase the aggregate principal amount of the 2017 Credit Facility by up to an additional $100.0 million plus the amount that would result in its first lien net leverage ratio (as such term is used in the 2017 Credit Agreement) not exceeding 4.0 to 1.0, subject to the Company satisfying certain conditions. Borrowings under the Term Loan B Facility were used on the Closing Date to (a) repay in full all of the Company’s and its subsidiaries’ outstanding obligations under the Company’s previous credit facility (“2013 Credit Facility”) and to terminate the 2013 Credit Agreement, (b) pay fees and expenses in connection with the 2017 Credit Facility, and (c) for general corporate purposes. The 2017 Credit Facility is guaranteed on a senior secured basis by certain of its existing and future wholly-owned domestic subsidiaries, and is secured on a first priority basis by the Company’s and those subsidiaries’ assets. The Company’s borrowings under the 2017 Credit Facility bear interest on the outstanding principal amount thereof from the date when made at a rate per annum equal to either: (i) the Eurodollar Rate (as defined in the 2017 Credit Agreement) plus 2.75%; or (ii) the Base Rate (as defined in the 2017 Credit Agreement) plus 1.75%. The Term Loan B Facility expires on November 30, 2024 (the “Maturity Date”) In the event the Company engages in a transaction that has the effect of reducing the yield of any loans outstanding under the Term Loan B Facility within six months of the Closing Date, the Company will owe 1% of the amount of the loans so repriced or replaced to the Lenders thereof (such fee, the “Repricing Fee”). Other than the Repricing Fee, the amounts outstanding under the 2017 Credit Facility may be prepaid at the Company’s option without premium or penalty, provided that certain limitations are observed, and subject to customary breakage fees in connection with the prepayment of a Eurodollar rate loan. The principal amount of the Term Loan B Facility shall be paid in installments on the dates and in the respective amounts set forth in the 2017 Credit Agreement, with the final balance due on the Maturity Date. Subject to certain exceptions, the 2017 Credit Facility contains covenants that limit the ability of the Company and its restricted subsidiaries to, among other things: • incur liens on the Company’s property or assets; • make certain investments; • incur additional indebtedness; • consummate any merger, dissolution, liquidation, consolidation or sale of substantially all assets; • dispose of certain assets; • make certain restricted payments; • make certain acquisitions; • enter into substantially different lines of business; • enter into certain transactions with affiliates; • use loan proceeds to purchase or carry margin stock or for any other prohibited purpose; • change or amend the terms of the Company’s organizational documents or the organization documents of certain restricted subsidiaries in a materially adverse way to the lenders, or change or amend the terms of certain indebtedness; • enter into sale and leaseback transactions; • make prepayments of any subordinated indebtedness, subject to certain conditions; and • change the Company’s fiscal year, or accounting policies or reporting practices. The 2017 Credit Facility also provides for certain customary events of default, including the following: • default for three (3) business days in the payment of interest on borrowings under the 2017 Credit Facility when due; • default in payment when due of the principal amount of borrowings under the 2017 Credit Facility; • failure by the Company or any subsidiary to comply with the negative covenants and certain other covenants relating to maintaining the legal existence of the Company and certain of its restricted subsidiaries and compliance with anti-corruption laws; • failure by the Company or any subsidiary to comply with any of the other agreements in the 2017 Credit Agreement and related loan documents that continues for thirty (30) days (or ten (10) days in the case of failure to comply with covenants related to inspection rights of the administrative agent and lenders and permitted uses of proceeds from borrowings under the 2017 Credit Facility) after the Company’s officers first become aware of such failure or first receive written notice of such failure from any lender; • default in the payment of other indebtedness if the amount of such indebtedness aggregates to $15.0 million or more, or failure to comply with the terms of any agreements related to such indebtedness if the holder or holders of such indebtedness can cause such indebtedness to be declared due and payable; • certain events of bankruptcy or insolvency with respect to the Company or any significant subsidiary; • final judgment is entered against the Company or any restricted subsidiary in an aggregate amount over $15.0 million, and either enforcement proceedings are commenced by any creditor or there is a period of 30 consecutive days during which the judgment remains unpaid and no stay is in effect; • any material provision of any agreement or instrument governing the 2017 Credit Facility ceases to be in full force and effect; and • any revocation, termination, substantial and adverse modification, or refusal by final order to renew, any media license, or the requirement (by final non-appealable order) to sell a television or radio station, where any such event or failure is reasonably expected to have a material adverse effect. The Term Loan B Facility does not contain any financial covenants. In connection with the Company entering into the 2017 Credit Agreement, the Company and its restricted subsidiaries also entered into a Security Agreement, pursuant to which the Company and the Credit Parties each granted a first priority security interest in the collateral securing the 2017 Credit Facility for the benefit of the lenders under the 2017 Credit Facility. The carrying amount of the Term Loan B Facility as of March 31, 2019 was was |
Fair Value Measurements | Fair Value Measurements The Company measures certain financial assets and liabilities at fair value on a recurring basis. Fair value is the price the Company would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. ASC 820, “Fair Value Measurements and Disclosures”, defines and establishes a framework for measuring fair value and expands disclosures about fair value measurements. In accordance with ASC 820, the Company has categorized its financial assets and liabilities, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy as set forth below. Level 1 – Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the company has the ability to access at the measurement date. Level 2 – Assets and liabilities whose values are based on quoted prices for similar attributes in active markets; quoted prices in markets where trading occurs infrequently; and inputs other than quoted prices that are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 – Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheets (in millions): March 31, 2019 Total Fair Value and Carrying Value on Balance Fair Value Measurement Category (in millions) Sheet Level 1 Level 2 Level 3 Assets: Money market account $ 36.7 $ - $ 36.7 $ - Certificates of deposit $ 7.6 $ - $ 7.6 $ - Corporate bonds $ 115.0 $ - $ 115.0 $ - Liabilities: Contingent Consideration $ 8.5 $ - $ - $ 8.5 December 31, 2018 Total Fair Value and Carrying Value on Balance Fair Value Measurement Category Sheet Level 1 Level 2 Level 3 Assets: Money market account $ 34.6 $ - $ 34.6 $ - Certificates of deposit $ 8.2 $ - $ 8.2 $ - Corporate bonds $ 124.2 $ - $ 124.2 $ - Liabilities: Contingent Consideration $ 8.1 $ - $ - $ 8.1 As of March 31, 2019, the Company held investments in a money market fund, certificates of deposit, and corporate bonds. All certificates of deposit are within the current FDIC insurance limits and all corporate bonds are investment grade. The Company’s available for sale securities are comprised of certificates of deposit and bonds. These securities are valued using quoted prices for similar attributes in active markets (Level 2). Since these investments are classified as available for sale, they are recorded at their fair market value within Cash and cash equivalents and Marketable securities in the Unaudited Consolidated Balance Sheet and their unrealized gains or losses are included in other comprehensive income. As of March 31, 2019, the following table summarizes the amortized cost and the unrealized (gains) losses of the available for sale securities (in thousands): Certificates of Deposit Corporate Bonds Amortized Cost Unrealized (gains) losses Amortized Cost Unrealized (gains) losses Due within a year $ 3,360 $ (3 ) $ 35,056 $ (48 ) Due after one year through five years 4,202 1 80,268 (266 ) Total $ 7,562 $ (2 ) $ 115,324 $ (314 ) The Company periodically reviews its available for sale securities for other-than-temporary impairment. For the three-month period ended March 31, 2019, the Company did not consider any of its securities to be other-than-temporarily impaired and, accordingly, did not recognize any impairment losses. Included in interest income for the three-month period ended March 31, 2019 was interest income related to the Company’s available-for-sale securities of $0.9 million. |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) includes foreign currency translation adjustments and changes in the fair value of available for sale securities. The following table provides a roll-forward of accumulated other comprehensive income (loss) for the three-month period ended March 31, 2019 (in millions): Foreign Currency Translation Marketable Securities Total Accumulated other comprehensive income (loss) as of December 31, 2018 $ (0.4 ) $ (1.0 ) $ (1.4 ) Other comprehensive income (loss) - 1.0 1.0 Income tax (expense) benefit - (0.2 ) (0.2 ) Other comprehensive income (loss), net of tax - 0.8 0.8 Accumulated other comprehensive income (loss) as of March 31, 2019 (0.4 ) (0.2 ) (0.6 ) |
Foreign Currency | Foreign Currency Based on recent data reported by the International Monetary Fund, Argentina has been identified as a country with a highly inflationary economy. According to U.S. GAAP, a registrant should apply highly inflationary accounting in the first reporting period after such determination. Therefore, the Company transitioned the accounting for its Argentine operations to highly inflationary status as of July 1, 2018 and, commencing that date, changed the functional currency from the Argentine Peso to U.S. dollar. |
Cost of Revenue | Cost of Revenue Cost of revenue related to the Company’s digital segment consists primarily of the costs of online media acquired from third-party publishers. |
Assets Held For Sale | Assets Held For Sale Assets are classified as held for sale when the carrying value is expected to be recovered through a sale rather than through their continued use and all of the necessary classification criteria have been met. Assets held for sale are recorded at the lower of their carrying value or estimated fair value less selling costs and classified as current assets. Depreciation is not recorded on assets classified as held for sale. During the second quarter of 2018, the Company relocated the operations of two of its television stations in the Palm Springs, California market and management approved the sale of the vacated building. The building and related improvements met the criteria for classification as assets held for sale and their carrying value is presented separately in the consolidated balance sheet. Assets held for sale are classified as current assets as management believes the sale will be completed within one year. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326), Newly Adopted Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) The Company adopted this ASU in Q1 2019. As permitted under the transition guidance of the standard, the Company applied the guidance on a prospective basis as of the adoption date. As a result, prior period amounts were not adjusted and continue to be reported in accordance with accounting guidance under ASC 840. The Company elected the package of practical expedients such that the Company did not reassess whether any expired or existing contracts are or contain leases. In addition, the Company did not reassess prior conclusions reached for lease classification and did not reassess initial direct costs for existing leases. Based on the Company’s assessment, the adoption of the guidance resulted in a material impact on the Company’s consolidated balance sheet. However, the impact to the Company’s results of operations and cash flows through March 31, 2019 are not considered material. As of the adoption date, the Company recognized right-of-use (“ROU”) assets of $45.8 million and lease liabilities of $52.4 million. The difference between the ROU assets and lease liabilities is attributed to deferred rent and lease incentives which were combined and presented net within the ROU assets. Refer to Note 4 for additional information. In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Non-employee Share-based Payment Accounting In August 2018, the SEC issued a final rule to amend certain disclosure requirements that were redundant, duplicative, overlapping or superseded by other SEC disclosure requirements, US GAAP or IFRS.2 The amendments generally eliminated or otherwise reduced certain disclosure requirements of various SEC rules and regulations. However, in some cases, the amendments require additional information to be disclosed, including changes in stockholders’ equity in interim periods. The Company adopted the rule in Q1 2019 and included a statement of stockholders’ equity in our Form 10-Q. |
The Company and Significant A_3
The Company and Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Reconciliation of Basic and Diluted Income (Loss) Per Share | The following table illustrates the reconciliation of the basic and diluted income (loss) per share computations required by Accounting Standards Codification (ASC) 260-10, “Earnings per Share” (in thousands, except share and per share data): Three-Month Period Ended March 31, 2019 2018 Basic earnings per share: Numerator: Net income (loss) $ 1,424 $ (1,808 ) Denominator: Weighted average common shares outstanding 86,101,741 90,319,092 Per share: Net income (loss) per share $ 0.02 $ (0.02 ) Diluted earnings per share: Numerator: Net income (loss) $ 1,424 $ (1,808 ) Denominator: Weighted average common shares outstanding 86,101,741 90,319,092 Dilutive securities: Stock options and restricted stock units 1,051,246 - Diluted shares outstanding 87,152,987 90,319,092 Per share: Net income (loss) per share $ 0.02 $ (0.02 ) |
Fair Value of Assets and Liabilities Measured on Recurring Basis | The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheets (in millions): March 31, 2019 Total Fair Value and Carrying Value on Balance Fair Value Measurement Category (in millions) Sheet Level 1 Level 2 Level 3 Assets: Money market account $ 36.7 $ - $ 36.7 $ - Certificates of deposit $ 7.6 $ - $ 7.6 $ - Corporate bonds $ 115.0 $ - $ 115.0 $ - Liabilities: Contingent Consideration $ 8.5 $ - $ - $ 8.5 December 31, 2018 Total Fair Value and Carrying Value on Balance Fair Value Measurement Category Sheet Level 1 Level 2 Level 3 Assets: Money market account $ 34.6 $ - $ 34.6 $ - Certificates of deposit $ 8.2 $ - $ 8.2 $ - Corporate bonds $ 124.2 $ - $ 124.2 $ - Liabilities: Contingent Consideration $ 8.1 $ - $ - $ 8.1 |
Summary of Amortized Cost and Unrealized Gains (Losses) of Available for Sale Securities | As of March 31, 2019, the following table summarizes the amortized cost and the unrealized (gains) losses of the available for sale securities (in thousands): Certificates of Deposit Corporate Bonds Amortized Cost Unrealized (gains) losses Amortized Cost Unrealized (gains) losses Due within a year $ 3,360 $ (3 ) $ 35,056 $ (48 ) Due after one year through five years 4,202 1 80,268 (266 ) Total $ 7,562 $ (2 ) $ 115,324 $ (314 ) |
Summary of Components of AOCI | Accumulated other comprehensive income (loss) includes foreign currency translation adjustments and changes in the fair value of available for sale securities. The following table provides a roll-forward of accumulated other comprehensive income (loss) for the three-month period ended March 31, 2019 (in millions): Foreign Currency Translation Marketable Securities Total Accumulated other comprehensive income (loss) as of December 31, 2018 $ (0.4 ) $ (1.0 ) $ (1.4 ) Other comprehensive income (loss) - 1.0 1.0 Income tax (expense) benefit - (0.2 ) (0.2 ) Other comprehensive income (loss), net of tax - 0.8 0.8 Accumulated other comprehensive income (loss) as of March 31, 2019 (0.4 ) (0.2 ) (0.6 ) |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Disaggregation of Revenue by Major Source and by Sales Channel | 2019 2018 Broadcast advertising $ 34,708 $ 37,709 Digital advertising 14,472 18,244 Spectrum Usage Rights 5,084 108 Retransmission Consent 8,760 8,853 Other 1,656 1,924 Total revenue $ 64,680 $ 66,838 2019 2018 Local Direct $ 6,055 $ 14,593 Local Agency 13,700 6,916 National Agency 14,953 16,200 Total revenue $ 34,708 $ 37,709 |
Summary of Deferred Revenue | (in thousands) December 31, 2018 Increase Decrease * March 31, 2019 Deferred revenue $ 2,759 2,338 (2,759 ) $ 2,338 * The amount disclosed in the decrease column reflects revenue that has been recorded in the three-month period ended March 31, 2019. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Summary of Expected Future Payments Related to Lease Liabilities | The following table summarizes the expected future payments related to lease liabilities as of March 31, 2019: (in thousands) 2019 Remainder of 2019 $ 8,017 2020 10,785 2021 8,526 2022 7,176 2023 5,583 2024 and thereafter 31,763 Total minimum payments $ 71,850 Less amounts representing interest (21,150 ) Present value of minimum lease payments $ 50,700 |
Summary of Lease Payments and Supplemental Non-Cash Disclosures | The following table summarizes lease payments and supplemental non-cash disclosures for the three-months ended March 31, 2019: (in thousands) Three Months- Ended March 31, 2019 Cash paid for amounts included in lease liabilities: Operating cash flows from operating leases $ 2,800 Non-cash additions to operating lease assets $ 315 |
Summary of Future Minimum Rental Commitments for Operating Leases | The tables below summarize our future minimum rental commitments for operating leases as of December 31, 2018: (in thousands) Amount 2019 $ 10,432 2020 10,677 2021 8,507 2022 7,560 2023 6,137 Thereafter 38,515 $ 81,828 |
Summary of Components of Lease Expense | The following table summarizes the components of lease expense for the three months ended March 31, 2019: (in thousands) Amount Operating lease cost $ 2,397 Variable lease cost 421 Short-term lease cost 107 Total lease cost $ 2,925 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Separate Financial Data for Each of Company's Operating Segment | 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 and foreign currency (gain) loss. The Company generated 15% and 19% of its revenue outside the United States during the three-month periods ended March 31, 2019 and March 31, 2018, respectively. The Company evaluates the performance of its operating segments based on the following (in thousands): Three-Month Period Ended March 31, % 2019 2018 Change Net revenue Television $ 38,253 $ 34,491 11 % Radio 11,955 14,103 (15 )% Digital 14,472 18,244 (21 )% Consolidated 64,680 66,838 (3 )% Cost of revenue - digital media 7,642 10,625 (28 )% Direct operating expenses Television 14,927 15,550 (4 )% Radio 9,508 10,674 (11 )% Digital 4,495 4,809 (7 )% Consolidated 28,930 31,033 (7 )% Selling, general and administrative expenses Television 5,814 5,972 (3 )% Radio 4,775 4,606 4 % Digital 3,225 2,716 19 % Consolidated 13,814 13,294 4 % Depreciation and amortization Television 2,260 2,204 3 % Radio 332 619 (46 )% Digital 1,324 1,116 19 % Consolidated 3,916 3,939 (1 )% Segment operating profit (loss) Television 15,252 10,765 42 % Radio (2,660 ) (1,796 ) 48 % Digital (2,214 ) (1,022 ) 117 % Consolidated 10,378 7,947 31 % Corporate expenses 6,894 5,975 15 % Change in fair value contingent consideration 359 2,100 (83 )% Foreign currency (gain) loss 132 213 (38 )% Other operating (gain) loss (1,996 ) (22 ) * Operating income (loss) 4,989 (319 ) * Interest expense $ (3,490 ) $ (3,398 ) 3 % Interest income 919 913 1 % Dividend income 255 128 99 % Income (loss) before income taxes 2,673 (2,676 ) * Capital expenditures Television $ 6,341 $ 2,080 Radio 382 81 Digital 119 66 Consolidated $ 6,842 $ 2,227 March 31, December 31, Total assets 2019 2018 Television 507,024 487,929 Radio 137,488 121,020 Digital 75,676 81,460 Consolidated $ 720,188 $ 690,409 * Percentage not meaningful. |
The Company and Significant A_4
The Company and Significant Accounting Policies - Additional Information (Detail) | Nov. 30, 2017USD ($) | Mar. 31, 2019USD ($)SegmentStationLocationMarket$ / sharesshares | Jun. 30, 2018Station | Mar. 31, 2018USD ($)shares | May 09, 2018USD ($)$ / sharesshares | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | Apr. 11, 2018USD ($) | Jul. 13, 2017USD ($) |
Accounting Policies [Line Items] | |||||||||
Number of reportable segments | Segment | 3 | ||||||||
Restricted cash | $ 732,000 | $ 732,000 | |||||||
Retransmission consent revenue | $ 8,800,000 | $ 8,900,000 | |||||||
Number of Class A common stock shares converted | shares | 1 | ||||||||
Shares of dilutive securities not included in computation of diluted income per share | shares | 43,534 | 1,276,642 | |||||||
Amount approved under share purchase | $ 30,000,000 | $ 15,000,000 | |||||||
Aggregate purchase price of repurchased shares | $ 7,706,000 | $ 2,402,000 | |||||||
Unamortized debt issuance costs | 2,611,000 | 2,709,000 | |||||||
Interest income related to available-for-sale securities | 919,000 | 913,000 | |||||||
Operating leases right of use asset | 44,070,000 | $ 45,800,000 | |||||||
Lease liabilities | 50,700,000 | $ 52,400,000 | |||||||
Available-for-Sale Securities | |||||||||
Accounting Policies [Line Items] | |||||||||
Interest income related to available-for-sale securities | $ 900,000 | ||||||||
2017 Credit Facility | |||||||||
Accounting Policies [Line Items] | |||||||||
Agreement date | Nov. 30, 2017 | ||||||||
Additional borrowing capacity | $ 100,000,000 | ||||||||
First lien net leverage ratio | 4.00% | ||||||||
Percentage of repricing fee | 1.00% | ||||||||
Certain customary events of default, number of business days to default in the payment of interest on borrowings | 3 days | ||||||||
Certain customary events of default, number of days default continue for compliance with other agreement | 30 days | ||||||||
Certain customary events of default, number of days default continue for financial statement delivery obligations | 10 days | ||||||||
Certain customary events of default, indebtedness aggregate amount | $ 15,000,000 | ||||||||
Certain customary events of default, failure in payment of final judgments aggregate amount | $ 15,000,000 | ||||||||
Certain customary events of default, failure in payment of final judgments aggregate amount period | 30 days | ||||||||
2017 Credit Facility | Eurodollar Rate | |||||||||
Accounting Policies [Line Items] | |||||||||
Variable interest rate basis spread on debt | 2.75% | ||||||||
2017 Credit Facility | Base Rate Margin | |||||||||
Accounting Policies [Line Items] | |||||||||
Variable interest rate basis spread on debt | 1.75% | ||||||||
2017 Credit Facility | Term Loan B Facility | |||||||||
Accounting Policies [Line Items] | |||||||||
Senior Secured debt | $ 300,000,000 | ||||||||
Maturity date of revolving credit facility | Nov. 30, 2024 | ||||||||
Period considered for applicability of repricing fees | 6 months | ||||||||
2013 Credit Facility | Term Loan B Facility | |||||||||
Accounting Policies [Line Items] | |||||||||
Carrying value of term loan | $ 242,900,000 | ||||||||
Unamortized debt issuance costs | 2,600,000 | ||||||||
Estimated fair value of term loan | $ 235,700,000 | ||||||||
Class A common stock | |||||||||
Accounting Policies [Line Items] | |||||||||
Amount approved under share purchase | $ 15,000,000 | ||||||||
Number of shares repurchased | shares | 2,100,000 | 6,600,000 | |||||||
Average price of repurchased shares | $ / shares | $ 3.65 | $ 4.05 | |||||||
Aggregate purchase price of repurchased shares | $ 7,700,000 | $ 26,800,000 | |||||||
Stock Options And Restricted Stock Units | |||||||||
Accounting Policies [Line Items] | |||||||||
Share-based compensation expenses | 800,000 | 1,200,000 | |||||||
Restricted Stock Units | |||||||||
Accounting Policies [Line Items] | |||||||||
Total unrecognized compensation expense related to grants of restricted stock units | $ 3,400,000 | ||||||||
Weighted average period for unrecognized compensation expense related to grants of restricted stock units | 1 year 6 months | ||||||||
Univision | |||||||||
Accounting Policies [Line Items] | |||||||||
Payment of sales representation fees to television stations | $ 2,000,000 | 2,000,000 | |||||||
Amount due from television stations for carriage | 4,800,000 | ||||||||
Retransmission consent revenue | $ 6,700,000 | $ 7,500,000 | |||||||
Common stock percentage held by Univision | 11.00% | ||||||||
UniMas | |||||||||
Accounting Policies [Line Items] | |||||||||
Affiliate advertising minutes per hour for which entity has right to sell | 4 minutes 30 seconds | ||||||||
Accounting Standards Update 2016-18 | |||||||||
Accounting Policies [Line Items] | |||||||||
Restricted cash | $ 700,000 | $ 700,000 | |||||||
Minimum | Employee Stock Options | |||||||||
Accounting Policies [Line Items] | |||||||||
Vesting period | 1 year | ||||||||
Minimum | Restricted Stock Units | |||||||||
Accounting Policies [Line Items] | |||||||||
Vesting period | 1 year | ||||||||
Minimum | Univision | |||||||||
Accounting Policies [Line Items] | |||||||||
Affiliate advertising minutes per hour for which entity has right to sell | 4 minutes | ||||||||
Maximum | Employee Stock Options | |||||||||
Accounting Policies [Line Items] | |||||||||
Vesting period | 4 years | ||||||||
Maximum | Restricted Stock Units | |||||||||
Accounting Policies [Line Items] | |||||||||
Vesting period | 4 years | ||||||||
Television | |||||||||
Accounting Policies [Line Items] | |||||||||
Number of stations owned | Station | 55 | ||||||||
Number of stations relocated | Station | Station | 2 | ||||||||
Radio | |||||||||
Accounting Policies [Line Items] | |||||||||
Number of stations owned | Station | 49 | ||||||||
Radio operations stations, number of location | Location | 16 | ||||||||
Advertisements and Syndicate Radio Programming | Minimum | |||||||||
Accounting Policies [Line Items] | |||||||||
Number of markets owned | Market | 100 |
The Company and Significant A_5
The Company and Significant Accounting Policies - Reconciliation of Basic and Diluted Income (Loss) Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share Basic And Diluted [Abstract] | ||
Net income (loss) | $ 1,424 | $ (1,808) |
Denominator: | ||
Weighted average common shares outstanding, basic | 86,101,741 | 90,319,092 |
Basic earnings per share: | ||
Net income (loss) per share | $ 0.02 | $ (0.02) |
Denominator: | ||
Weighted average common shares outstanding, basic | 86,101,741 | 90,319,092 |
Dilutive securities: | ||
Stock options and restricted stock units | 1,051,246 | |
Weighted average common shares outstanding, diluted | 87,152,987 | 90,319,092 |
Diluted earnings per share: | ||
Net income (loss) per share | $ 0.02 | $ (0.02) |
The Company and Significant A_6
The Company and Significant Accounting Policies - Fair Value Assets and Liabilities Measured on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Contingent Consideration | $ 8.5 | $ 8.1 |
Money Market Account | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value and Carrying Value on Assets | 36.7 | 34.6 |
Certificates of Deposit | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value and Carrying Value on Assets | 7.6 | 8.2 |
Corporate Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value and Carrying Value on Assets | 115 | 124.2 |
Level 2 | Money Market Account | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value and Carrying Value on Assets | 36.7 | 34.6 |
Level 2 | Certificates of Deposit | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value and Carrying Value on Assets | 7.6 | 8.2 |
Level 2 | Corporate Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value and Carrying Value on Assets | 115 | 124.2 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Contingent Consideration | $ 8.5 | $ 8.1 |
The Company and Significant A_7
The Company and Significant Accounting Policies - Summary of Amortized Cost and Unrealized (Gains) Losses of Available for Sale Securities (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Certificates of Deposit | |
Amortized Cost | |
Due within a year | $ 3,360 |
Due after one year through five years | 4,202 |
Total | 7,562 |
Unrealized gains (losses) | |
Due within a year | (3) |
Due after one year through five years | 1 |
Total | (2) |
Corporate Bonds | |
Amortized Cost | |
Due within a year | 35,056 |
Due after one year through five years | 80,268 |
Total | 115,324 |
Unrealized gains (losses) | |
Due within a year | (48) |
Due after one year through five years | (266) |
Total | $ (314) |
The Company and Significant A_8
The Company and Significant Accounting Policies - Summary of Components of AOCI (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Accumulated other comprehensive income (loss) | $ (1,412) | |
Other comprehensive income (loss) | 1,000 | |
Income tax (expense) benefit | (200) | |
Total other comprehensive income (loss) | 793 | $ (949) |
Accumulated other comprehensive income (loss) | (619) | |
Foreign Currency Translation | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Accumulated other comprehensive income (loss) | (400) | |
Accumulated other comprehensive income (loss) | (400) | |
Marketable Securities | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Accumulated other comprehensive income (loss) | (1,000) | |
Other comprehensive income (loss) | 1,000 | |
Income tax (expense) benefit | (200) | |
Total other comprehensive income (loss) | 800 | |
Accumulated other comprehensive income (loss) | $ (200) |
Revenues - Summary of Revenues
Revenues - Summary of Revenues Disaggregated by Major Source (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 64,680 | $ 66,838 |
Broadcast Advertising | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 34,708 | 37,709 |
Digital Advertising | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 14,472 | 18,244 |
Spectrum Usage Rights | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 5,084 | 108 |
Retransmission Consent | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 8,760 | 8,853 |
Other | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 1,656 | $ 1,924 |
Revenues - Summary of Disaggreg
Revenues - Summary of Disaggregation of Broadcast Advertising Revenue by Sales Channel (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 64,680 | $ 66,838 |
Advertising | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 34,708 | 37,709 |
Advertising | Local Direct | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 6,055 | 14,593 |
Advertising | Local Agency | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 13,700 | 6,916 |
Advertising | National Agency | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 14,953 | $ 16,200 |
Revenues - Summary of Deferred
Revenues - Summary of Deferred Revenue (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Revenue From Contract With Customer [Abstract] | |
Beginning Balance | $ 2,759 |
Increase | 2,338 |
Decrease | (2,759) |
Ending Balance | $ 2,338 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Lessee Lease Description [Line Items] | |
Remaining term descripton of leases | The Company’s existing leases have remaining terms of less than one year up to 32 years. |
Weighted average remaining lease term | 11 years 1 month 6 days |
Weighted average discount rate | 6.20% |
Lease cost | $ 2,925 |
Corporate Expenses | |
Lessee Lease Description [Line Items] | |
Lease cost | 200 |
Direct Operating Expenses | |
Lessee Lease Description [Line Items] | |
Lease cost | 1,300 |
Selling, General and Administrative Expenses | |
Lessee Lease Description [Line Items] | |
Lease cost | $ 1,400 |
Maximum | |
Lessee Lease Description [Line Items] | |
Remaining term of leases | 32 years |
Leases - Summary of Expected Fu
Leases - Summary of Expected Future Payments Related to Lease Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
Remainder of 2019 | $ 8,017 | |
2020 | 10,785 | |
2021 | 8,526 | |
2022 | 7,176 | |
2023 | 5,583 | |
2024 and thereafter | 31,763 | |
Total minimum payments | 71,850 | |
Less amounts representing interest | (21,150) | |
Present value of minimum lease payments | $ 50,700 | $ 52,400 |
Leases - Summary of Lease Payme
Leases - Summary of Lease Payments and Supplemental Non-Cash Disclosures (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 2,800 |
Non-cash additions to operating lease assets | $ 315 |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Rental Commitments for Operating Leases (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 10,432 |
2020 | 10,677 |
2021 | 8,507 |
2022 | 7,560 |
2023 | 6,137 |
Thereafter | 38,515 |
Total future minimum rental commitments, operating leases | $ 81,828 |
Leases - Summary of Components
Leases - Summary of Components of Lease Expense (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 2,397 |
Variable lease cost | 421 |
Short-term lease cost | 107 |
Total lease cost | $ 2,925 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2019SegmentStationMarket | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | Segment | 3 | |
Percentage of revenue generated from outside the United States | 15.00% | 19.00% |
Television | ||
Segment Reporting Information [Line Items] | ||
Number of stations owned | 55 | |
Radio | ||
Segment Reporting Information [Line Items] | ||
Number of stations owned | 49 | |
Advertisements and Syndicates Radio Programming | Minimum | ||
Segment Reporting Information [Line Items] | ||
Number of markets owned | Market | 100 |
Segment Information - Separate
Segment Information - Separate Financial Data for Each of Company's Operating Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Net revenue | $ 64,680 | $ 66,838 | |
Direct operating expenses | 28,930 | 31,033 | |
Selling, general and administrative expenses | 13,814 | 13,294 | |
Depreciation and amortization | 3,916 | 3,939 | |
Operating income (loss) | 4,989 | (319) | |
Corporate expenses | 6,894 | 5,975 | |
Change in fair value contingent consideration | 359 | 2,100 | |
Foreign currency (gain) loss | 132 | 213 | |
Other operating (gain) loss | (1,996) | (22) | |
Interest expense | (3,490) | (3,398) | |
Interest income | 919 | 913 | |
Dividend income | 255 | 128 | |
Income (loss) before income taxes | 2,673 | (2,676) | |
Capital expenditures | 6,842 | 2,227 | |
Total assets | $ 720,188 | 690,409 | $ 690,409 |
Percentage change in net revenue | (3.00%) | ||
Percentage change in direct operating expenses | (7.00%) | ||
Percentage change in selling, general and administrative expenses | 4.00% | ||
Percentage change in depreciation and amortization | (1.00%) | ||
Percentage change in segment operating profit (loss) | 31.00% | ||
Percentage change in corporate expenses | 15.00% | ||
Change in fair value contingent consideration | (83.00%) | ||
Percentage change in foreign currency (gain) loss | (38.00%) | ||
Percentage change in interest expense | 3.00% | ||
Percentage change in interest income | 1.00% | ||
Percentage change in dividend income | 99.00% | ||
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | $ 10,378 | 7,947 | |
Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Corporate expenses | 6,894 | 5,975 | |
Television | |||
Segment Reporting Information [Line Items] | |||
Net revenue | 38,253 | 34,491 | |
Direct operating expenses | 14,927 | 15,550 | |
Selling, general and administrative expenses | 5,814 | 5,972 | |
Depreciation and amortization | 2,260 | 2,204 | |
Capital expenditures | 6,341 | 2,080 | |
Total assets | $ 507,024 | 487,929 | |
Percentage change in net revenue | 11.00% | ||
Percentage change in direct operating expenses | (4.00%) | ||
Percentage change in selling, general and administrative expenses | (3.00%) | ||
Percentage change in depreciation and amortization | 3.00% | ||
Percentage change in segment operating profit (loss) | 42.00% | ||
Television | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | $ 15,252 | 10,765 | |
Radio | |||
Segment Reporting Information [Line Items] | |||
Net revenue | 11,955 | 14,103 | |
Direct operating expenses | 9,508 | 10,674 | |
Selling, general and administrative expenses | 4,775 | 4,606 | |
Depreciation and amortization | 332 | 619 | |
Capital expenditures | 382 | 81 | |
Total assets | $ 137,488 | 121,020 | |
Percentage change in net revenue | (15.00%) | ||
Percentage change in direct operating expenses | (11.00%) | ||
Percentage change in selling, general and administrative expenses | 4.00% | ||
Percentage change in depreciation and amortization | (46.00%) | ||
Percentage change in segment operating profit (loss) | 48.00% | ||
Radio | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | $ (2,660) | (1,796) | |
Digital | |||
Segment Reporting Information [Line Items] | |||
Net revenue | 14,472 | 18,244 | |
Cost of revenue | 7,642 | 10,625 | |
Direct operating expenses | 4,495 | 4,809 | |
Selling, general and administrative expenses | 3,225 | 2,716 | |
Depreciation and amortization | 1,324 | 1,116 | |
Capital expenditures | 119 | 66 | |
Total assets | $ 75,676 | 81,460 | |
Percentage change in net revenue | (21.00%) | ||
Percentage change in cost of revenue | (28.00%) | ||
Percentage change in direct operating expenses | (7.00%) | ||
Percentage change in selling, general and administrative expenses | 19.00% | ||
Percentage change in depreciation and amortization | 19.00% | ||
Percentage change in segment operating profit (loss) | 117.00% | ||
Digital | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | $ (2,214) | $ (1,022) |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Events - 2017 Credit Agreement $ in Millions | May 01, 2019USD ($) |
Subsequent Event [Line Items] | |
Percentage of fee equal to amount of outstanding loan | 0.10% |
Total fee amount | $ 0.2 |