Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Apr. 05, 2021 | Jun. 30, 2020 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | EVC | ||
Entity Registrant Name | ENTRAVISION COMMUNICATIONS CORP | ||
Entity Central Index Key | 0001109116 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity File Number | 1-15997 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 95-4783236 | ||
Entity Address, Address Line One | 2425 Olympic Boulevard | ||
Entity Address, Address Line Two | Suite 6000 West | ||
Entity Address, City or Town | Santa Monica | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 90404 | ||
City Area Code | 310 | ||
Local Phone Number | 447-3870 | ||
Entity Public Float | $ 96,767,128 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Title of 12(b) Security | Class A Common Stock | ||
Security Exchange Name | NYSE | ||
Documents Incorporated by Reference | Portions of the registrant’s Proxy Statement for the 2020 Annual Meeting of Stockholders scheduled to be held on May 27, 2021 are incorporated by a reference in Part III hereof. | ||
Class A common stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 60,765,450 | ||
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
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 119,162 | $ 33,123 |
Marketable securities | 27,988 | 91,662 |
Restricted cash | 749 | 734 |
Trade receivables (including related parties of $6,172 and $4,251), net of allowance for doubtful accounts of $3,790 and $2,890 | 142,004 | 71,406 |
Assets held for sale | 2,141 | 950 |
Prepaid expenses and other current assets (including related parties of $274 and $274) | 18,021 | 11,557 |
Total current assets | 310,065 | 209,432 |
Property and equipment, net of accumulated depreciation of $191,183 and $188,579 | 72,004 | 79,642 |
Intangible assets subject to amortization, net of accumulated amortization of $103,752 and $99,819 (including related parties of $5,869 and $7,098) | 49,412 | 16,772 |
Intangible assets not subject to amortization | 216,653 | 252,544 |
Goodwill | 58,043 | 46,511 |
Operating leases right of use asset | 33,525 | 43,837 |
Other assets | 7,643 | 7,462 |
Total assets | 747,345 | 656,200 |
Current liabilities | ||
Current maturities of long-term debt | 3,000 | 3,000 |
Accounts payable and accrued expenses (including related parties of $2,087 and $2,147) | 126,849 | 53,931 |
Operating lease liabilities | 7,290 | 9,056 |
Total current liabilities | 137,139 | 65,987 |
Long-term debt, less current maturities, net of unamortized debt issuance costs of $1,796 and $2,226 | 210,454 | 213,024 |
Long-term operating lease liabilities | 31,775 | 41,387 |
Other long-term liabilities | 3,732 | 3,371 |
Deferred income taxes | 54,980 | 44,259 |
Total liabilities | 438,080 | 368,028 |
Commitments and contingencies (note 12) | ||
Redeemable noncontrolling interest | 33,285 | |
Stockholders' equity | ||
Additional paid-in capital | 828,813 | 836,170 |
Accumulated deficit | (551,786) | (547,876) |
Accumulated other comprehensive income (loss) | (1,056) | (131) |
Total stockholders' equity | 275,980 | 288,172 |
Total liabilities and stockholders' equity | 747,345 | 656,200 |
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) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Trade receivables, related parties | $ 6,172 | $ 4,251 |
Trade receivables, allowance for doubtful accounts | 3,790 | 2,890 |
Prepaid expenses and other current assets | 18,021 | 11,557 |
Property and equipment, accumulated depreciation | 191,183 | 188,579 |
Accumulated amortization of Intangible assets | 103,752 | 99,819 |
Intangible assets subject to amortization, net | 49,412 | 16,772 |
Accounts payable and accrued expenses | 126,849 | 53,931 |
Unamortized debt issuance costs | 1,796 | 2,226 |
Related Parties | ||
Prepaid expenses and other current assets | 274 | 274 |
Intangible assets subject to amortization, net | 5,869 | 7,098 |
Accounts payable and accrued expenses | $ 2,087 | $ 2,147 |
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 | 60,759,405 | 60,074,698 |
Common stock, shares outstanding | 60,759,405 | 60,074,698 |
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 - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net revenue | $ 344,026 | $ 273,575 | $ 297,815 |
Expenses: | |||
Direct operating expenses (including related parties of $9,063, $8,194, and $9,254) (including non-cash stock-based compensation of $1,247, $732, and $732) | 104,909 | 119,412 | 125,242 |
Selling, general and administrative expenses | 48,404 | 53,965 | 51,535 |
Corporate expenses (including non-cash stock-based compensation of $3,878, $3,645, and $5,055) | 27,807 | 28,067 | 26,865 |
Depreciation and amortization (includes direct operating of $12,506, $11,294, and $10,272; selling, general and administrative of $4,065, $4,696, and $5,450; and corporate of $711, $658 and $551) (including related parties of $1,228, $1,229, and $1,228) | 17,282 | 16,648 | 16,273 |
Change in fair value of contingent consideration | (6,478) | (1,202) | |
Impairment charge | 40,035 | 32,097 | |
Foreign currency (gain) loss | (1,052) | 754 | 1,616 |
Other operating (gain) loss | (6,895) | (5,994) | (1,187) |
Total expenses | 337,418 | 275,228 | 264,238 |
Operating income (loss) | 6,608 | (1,653) | 33,577 |
Interest expense | (8,265) | (13,683) | (15,743) |
Interest income | 1,748 | 3,353 | 3,973 |
Dividend income | 28 | 918 | 1,475 |
Gain (loss) on debt extinguishment | (255) | (550) | |
Impairment loss on investment | (1,320) | ||
Income (loss) before income taxes | 119 | (11,320) | 21,412 |
Income tax (expense) benefit | (1,506) | (8,158) | (7,877) |
Income (loss) before equity in net income (loss) of nonconsolidated affiliate | (1,387) | (19,478) | 13,535 |
Equity in net income (loss) of nonconsolidated affiliate | (234) | (1,374) | |
Net income (loss) | (1,387) | (19,712) | 12,161 |
Net (income) loss attributable to redeemable noncontrolling interest | (2,523) | ||
Net income (loss) attributable to common stockholders | $ (3,910) | $ (19,712) | $ 12,161 |
Basic and diluted earnings per share: | |||
Net income (loss) per share attributable to common stockholders, basic | $ (0.05) | $ (0.23) | $ 0.14 |
Net income (loss) per share attributable to common stockholders, diluted | (0.05) | (0.23) | 0.13 |
Cash dividends declared per common share, basic and diluted | $ 0.13 | $ 0.20 | $ 0.20 |
Weighted average common shares outstanding, basic | 84,231,212 | 85,107,301 | 89,115,997 |
Weighted average common shares outstanding, diluted | 84,231,212 | 85,107,301 | 90,328,583 |
Digital | |||
Expenses: | |||
Cost of revenue | $ 106,928 | $ 36,757 | $ 45,096 |
Direct operating expenses (including related parties of $9,063, $8,194, and $9,254) (including non-cash stock-based compensation of $1,247, $732, and $732) | 15,227 | 18,357 | 21,521 |
Selling, general and administrative expenses | 15,404 | 13,904 | 11,590 |
Depreciation and amortization (includes direct operating of $12,506, $11,294, and $10,272; selling, general and administrative of $4,065, $4,696, and $5,450; and corporate of $711, $658 and $551) (including related parties of $1,228, $1,229, and $1,228) | $ 2,561 | $ 4,723 | $ 4,759 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Direct operating expenses | $ 104,909 | $ 119,412 | $ 125,242 |
Non-cash stock-based compensation | 5,125 | 4,377 | 5,787 |
Depreciation and amortization | 17,282 | 16,648 | 16,273 |
Related Parties | |||
Direct operating expenses | 9,063 | 8,194 | 9,254 |
Depreciation and amortization | 1,228 | 1,229 | 1,228 |
Direct Operating Expenses | |||
Non-cash stock-based compensation | 1,247 | 732 | 732 |
Depreciation and amortization | 12,506 | 11,294 | 10,272 |
Corporate Expenses | |||
Non-cash stock-based compensation | 3,878 | 3,645 | 5,055 |
Depreciation and amortization | 711 | 658 | 551 |
Selling, General and Administrative Expenses | |||
Depreciation and amortization | $ 4,065 | $ 4,696 | $ 5,450 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income (loss) | $ (1,387) | $ (19,712) | $ 12,161 |
Other comprehensive income (loss), net of tax: | |||
Change in foreign currency translation | (922) | (147) | (352) |
Change in fair value of marketable securities | (3) | 1,428 | (1,000) |
Total other comprehensive income (loss) | (925) | 1,281 | (1,352) |
Comprehensive income (loss) | (2,312) | (18,431) | 10,809 |
Comprehensive (income) loss attributable to redeemable noncontrolling interests | (2,523) | ||
Comprehensive income (loss) attributable to common stockholders | $ (4,835) | $ (18,431) | $ 10,809 |
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 | $ 249 | 249 | |||||||||
Issuance of common stock upon exercise of stock options or awards of restricted stock units, Shares | 177,000 | 100,000 | |||||||||
Tax payments related to shares withheld for share-based compensation plans | $ (794) | $ (1) | (793) | ||||||||
Tax payments related to shares withheld for share-based compensation plans, shares | 586,306 | ||||||||||
Stock-based compensation expense | 5,787 | 5,787 | |||||||||
Repurchase of Class A common stock | (13,812) | $ (13,800) | (13,812) | ||||||||
Repurchase of Class A common stock, Shares | (3,500,000) | (3,545,100) | 3,545,100 | ||||||||
Retirement of treasury stock, Shares | (3,545,100) | ||||||||||
Dividends paid | (17,782) | (17,782) | |||||||||
Change in fair value of marketable securities | (1,000) | (1,000) | |||||||||
Foreign currency translation gain (loss) | (352) | (352) | |||||||||
Net income (loss) attributable to common stockholders | 12,161 | 12,161 | |||||||||
Balance, Ending at Dec. 31, 2018 | $ 332,732 | $ 6 | $ 2 | $ 1 | 862,299 | (528,164) | (1,412) | ||||
Balance, Ending, Shares at Dec. 31, 2018 | 63,210,531 | 14,927,613 | 9,352,729 | ||||||||
Issuance of common stock upon exercise of stock options or awards of restricted stock units, Shares | 49,000 | ||||||||||
Tax payments related to shares withheld for share-based compensation plans | $ (979) | (979) | |||||||||
Tax payments related to shares withheld for share-based compensation plans, shares | 673,732 | ||||||||||
Stock-based compensation expense | 4,377 | 4,377 | |||||||||
Repurchase of Class A common stock | (12,565) | $ (12,600) | (12,565) | ||||||||
Repurchase of Class A common stock, Shares | (3,800,000) | (3,809,565) | 3,809,565 | ||||||||
Retirement of treasury stock, Shares | (3,809,565) | ||||||||||
Dividends paid | (16,962) | (16,962) | |||||||||
Change in fair value of marketable securities | 1,428 | 1,428 | |||||||||
Foreign currency translation gain (loss) | (147) | (147) | |||||||||
Net income (loss) attributable to common stockholders | (19,712) | (19,712) | |||||||||
Balance, Ending at Dec. 31, 2019 | $ 288,172 | $ 6 | $ 2 | $ 1 | 836,170 | (547,876) | (131) | ||||
Balance, Ending, Shares at Dec. 31, 2019 | 60,074,698 | 14,927,613 | 9,352,729 | 60,074,698 | 14,927,613 | 9,352,729 | |||||
Issuance of common stock upon exercise of stock options or awards of restricted stock units, Shares | 10,000 | ||||||||||
Tax payments related to shares withheld for share-based compensation plans | $ (1,426) | (1,426) | |||||||||
Tax payments related to shares withheld for share-based compensation plans, shares | 944,207 | ||||||||||
Stock-based compensation expense | 5,125 | 5,125 | |||||||||
Repurchase of Class A common stock | (525) | $ (500) | (525) | ||||||||
Repurchase of Class A common stock, Shares | (300,000) | (259,500) | 259,500 | ||||||||
Retirement of treasury stock, Shares | (259,500) | ||||||||||
Dividends paid | (10,531) | (10,531) | |||||||||
Change in fair value of marketable securities | (3) | (3) | |||||||||
Foreign currency translation gain (loss) | (922) | (922) | |||||||||
Net income (loss) attributable to common stockholders | (3,910) | (3,910) | |||||||||
Balance, Ending at Dec. 31, 2020 | $ 275,980 | $ 6 | $ 2 | $ 1 | $ 828,813 | $ (551,786) | $ (1,056) | ||||
Balance, Ending, Shares at Dec. 31, 2020 | 60,759,405 | 14,927,613 | 9,352,729 | 60,759,405 | 14,927,613 | 9,352,729 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (1,387) | $ (19,712) | $ 12,161 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 17,282 | 16,648 | 16,273 |
Impairment charge | 40,035 | 32,097 | |
Impairment loss on investment | 1,320 | ||
Deferred income taxes | (6,225) | 5,311 | 4,612 |
Non-cash interest | 649 | 881 | 1,124 |
Amortization of syndication contracts | 504 | 505 | 651 |
Payments on syndication contracts | (458) | (543) | (643) |
Equity in net (income) loss of nonconsolidated affiliate | 234 | 1,374 | |
Non-cash stock-based compensation | 5,125 | 4,377 | 5,787 |
(Gain) loss on disposal of property and equipment | (731) | 158 | |
(Gain) loss on debt extinguishment | 255 | 550 | |
Changes in assets and liabilities: | |||
(Increase) decrease in trade receivables, net | (20,100) | 8,610 | 5,895 |
(Increase) decrease in prepaid expenses and other current assets | 11,526 | 2,102 | (5,581) |
Increase (decrease) in accounts payable, accrued expenses and other liabilities | 17,229 | (19,384) | (9,727) |
Net cash provided by operating activities | 63,449 | 31,539 | 33,796 |
Cash flows from investing activities: | |||
Proceeds from sale of property and equipment and intangibles | 5,089 | 33 | |
Purchases of property and equipment | (9,060) | (25,283) | (17,006) |
Purchases of intangibles | (158) | (2,300) | (3,153) |
Purchase of a businesses, net of cash acquired | (21,261) | (3,522) | |
Purchases of marketable securities | (1,400) | (159,403) | |
Proceeds from marketable securities | 63,480 | 43,647 | 25,000 |
Purchases of investments | (300) | (1,495) | |
Net cash provided by (used in) investing activities | 38,090 | 14,364 | (159,546) |
Cash flows from financing activities: | |||
Proceeds from stock option exercises | 249 | ||
Tax payments related to shares withheld for share-based compensation plans | (1,426) | (1,688) | (2,268) |
Payments on long-term debt | (3,000) | (28,000) | (53,000) |
Dividends paid | (10,531) | (16,962) | (17,782) |
Repurchase of Class A common stock | (525) | (12,565) | (13,812) |
Payment of contingent consideration | (2,015) | ||
Payments of capitalized debt offering and issuance costs | (225) | ||
Net cash used in financing activities | (15,482) | (59,440) | (88,628) |
Effect of exchange rates on cash, cash equivalents and restricted cash | (3) | (71) | (11) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 86,054 | (13,608) | (214,389) |
Cash, cash equivalents and restricted cash: | |||
Beginning | 33,857 | 47,465 | 261,854 |
Ending | 119,911 | 33,857 | 47,465 |
Cash payments for: | |||
Interest | 7,616 | 12,802 | 14,619 |
Income taxes | 7,731 | 2,847 | 3,265 |
Supplemental disclosures of non-cash investing and financing activities: | |||
Capital expenditures financed through accounts payable, accrued expenses and other liabilities | $ 1,155 | 730 | 660 |
Contingent consideration included in accounts payable, accrued expenses and other liabilities | $ 1,641 | $ 8,119 |
Nature of Business
Nature of Business | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Business | 1. NATURE OF BUSINESS Nature of Business Entravision Communications Corporation (together with its subsidiaries, hereinafter referred to collectively as the “Company”) is a diversified global media, marketing and technology 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, whose operations are located primarily in Spain and Latin America, reaches a global market. encompass integrated marketing and media solutions, comprised of television, radio and digital properties and data analytics services The Impact of the COVID-19 Pandemic on the Company’s Business On March 11, 2020, the World Health Organization (the “WHO”) declared COVID-19 a pandemic. On March 13, 2020, a Presidential proclamation was issued declaring a national emergency in the United States as a result of COVID-19. The COVID-19 pandemic has affected the Company’s business and, subject to the extent and duration of the pandemic and the continuing economic crisis that has resulted from the pandemic, is anticipated to continue to affect the Company’s business, from both an operational and financial perspective, in future periods. In the quarter ended December 31, 2020, the global, U.S. and local economies declined at a slower rate than during earlier periods in 2020. With the exception of political advertising during the height of the election cycle, the Company continued to experience significant cancellations of advertising and a significant decrease in new advertising placements in its television segment and especially its radio segment, continuing a trend that the Company had begun to experience since the last half of March 2020, although the Company experienced this decrease at a slower rate as the year progressed. The impact on the Company’s radio segment continues to be significantly greater than that on its television segment because radio audiences declined at a much greater rate, and maintained, as a result of fewer people commuting to work or driving in general as a result of a combination of lockdown, shelter-in-place, stay-at-home or similar orders that were still in effect in various parts of the United States throughout most of 2020, and changes in personal behavior regardless of whether such lockdown, shelter-in-place, stay-at-home or similar orders were in effect in certain parts of the United States from time to time during this period To partially address this situation, the Company has continued to significantly reduce some of its advertising rates, primarily in its radio segment, although the rate of decrease in the Company’s advertising rates was at a slower pace during the quarter ended December 31, 2020 than during earlier periods in 2020 and has been somewhat moderated by political advertising in the Company’s inventory during the election cycle. The Company has also eased credit terms for certain of its advertising clients to help them manage their own cash flow and address other financial needs. Primarily during the quarter ended March 31, 2020 and early in the quarter ended June 30, 2020, the Company engaged in a small number of layoffs and significant number of furloughs of employees as a result of the pandemic. During the quarter ended December 31, 2020 the Company terminated these previously furloughed employees. Severance expense associated with these terminations was not material. The Company will continue to monitor this situation closely and may institute such further layoffs or furloughs at a future date if it thinks such actions are appropriate. The Company has elected to defer the employer portion of the social security payroll tax (6.2%) as outlined within the Coronavirus Aid, Relief and Economic Security Act of 2020, commonly known as the CARES Act. The deferral is effective from March 27, 2020 through December 31, 2020. The deferred amount will be paid in two installments and the amount will be considered timely paid if 50 % of the deferred amount is paid by December 31, 2021 and the remainder by December 31, 2022. In order to preserve cash during this period, the Company instituted certain cost reduction measures. On March 26, 2020, the Company suspended repurchases under its share repurchase program. Effective April 16, 2020, the Company instituted a 2.5%-22.5% reduction in salaries company-wide, depending on the amount of then-current compensation. During the quarter ended December 31, 2020, these reductions were reversed and payments were restored retroactively, resulting in no financial impact on a fiscal year basis. Effective May 16, 2020, the Company suspended company matching of employee contributions to their 401(k) retirement plans. The Company also reduced its dividend by 50% beginning in the second quarter of 2020, and it may do so in future periods. Additionally, effective May 28, 2020, the Board of Directors decreased its annual non-employee director fees by 20% for the Board year ending at the 2021 shareholders meeting. During the quarter ended December 31, 2020, these reductions were reversed and payments were restored retroactively, resulting in no financial impact on a fiscal year basis. The Company will continue to monitor all of these actions closely in light of current and changing conditions and may institute such additional actions as it may feel are appropriate at a future date. The Company believes that its liquidity and capital resources remain adequate and that it can meet current expenses for at least the next twelve months from a combination of cash on hand and cash flows from operations. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Consolidation and Presentation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain amounts in the Company’s prior period consolidated financial statements and notes to the financial statements have been reclassified to conform to current period presentation. Variable Interest Entities The Company performs a qualitative analysis to determine if it is the primary beneficiary of a variable interest entity. This analysis includes consideration of who has the power to direct the activities of the entity that most significantly impact the entity’s economic performance and who has the obligation to absorb losses or the right to receive benefits of the variable interest entity that could potentially be significant to the variable interest entity. The Company continuously reassesses whether it is the primary beneficiary of a variable interest entity. The Company has consolidated one entity for which it is the primary beneficiary. Total net assets and results of operations of the entity as of and for the years ended December 31, 2020 and 2019 are not significant. Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. The Company’s operations are affected by numerous factors, including changes in audience acceptance (i.e. ratings), priorities of advertisers, new laws and governmental regulations and policies and technological advances. The Company cannot predict if any of these factors might have a significant impact on the television, radio, and digital advertising industries in the future, nor can it predict what impact, if any, the occurrence of these or other events might have on the Company’s operations and cash flows. Significant estimates and assumptions made by management are used for, but not limited to, the allowance for doubtful accounts, stock-based compensation, the estimated useful lives of long-lived and intangible assets, the recoverability of such assets by their estimated future undiscounted cash flows, the fair value of reporting units and indefinite life intangible assets, fair values of derivative instruments, disclosure of the fair value of debt, deferred income taxes and the purchase price allocations used in the Company’s acquisitions. Cash and Cash Equivalents The Company considers all short-term, highly liquid debt instruments purchased with original maturities of three months or less to be cash equivalents. Cash and cash equivalents consist of funds held in general checking accounts, money market accounts and commercial paper. Cash and cash equivalents are stated at cost plus accrued interest, which approximates fair value. The Company had $34.5 million and $5.3 million in cash and cash equivalents held outside the United States as of December 31, 2020 and 2019, respectively. Restricted Cash As of December 31, 2020 and 2019, the Company’s balance sheet includes $0.7 Investments The Company made an investment in Cocina Vista, LLC (“Cocina”), a digital media company focused on Spanish and Latin American food and cooking in the United States, Spain and Latin America, beginning in the second quarter of 2017. a worldwide, perpetual, royalty-free license to entire content library. As of December 31, 2020, the Company held investments in a money market fund, certificates of deposit, and corporate bonds. The Company’s available for sale securities totaled $28.0 million and $91.7 million as of December 31, 2020 and 2019, respectively, and are comprised of certificates of deposit and bonds, which were recorded at their fair market value within “Marketable securities” in the consolidated balance sheet” (see Note 10). All certificates of deposit are within the current Federal Deposit Insurance Corporation insurance limits and all corporate bonds are investment grade. Long-lived Assets, Other Assets and Intangibles Subject to Amortization Property and equipment are recorded at cost. Depreciation and amortization are provided using the straight-line method over their estimated useful lives (see Note 6). The Company periodically evaluates assets to be held and used and long-lived assets held for sale, when events and circumstances warrant such review. Syndication contracts are recorded at cost. Syndication amortization is provided using the straight-line method over their estimated useful lives. Intangible assets subject to amortization are amortized on a straight-line method over their estimated useful lives (see Note 5). Favorable leasehold interests and pre-sold advertising contracts are amortized over the term of the underlying contracts. Deferred debt issuance costs are amortized over the life of the related indebtedness using the effective interest method. Changes in circumstances, such as the passage of new laws or changes in regulations, technological advances or changes to the Company’s business strategy, could result in the actual useful lives differing from initial estimates. Factors such as changes in the planned use of equipment, customer attrition, contractual amendments or mandated regulatory requirements could result in shortened useful lives. In those cases where the Company determines that the useful life of a long-lived asset should be revised, the Company will amortize or depreciate the net book value in excess of the estimated residual value over its revised remaining useful life. Long-lived assets and asset groups are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The estimated future cash flows are based upon, among other things, assumptions about expected future operating performance, and may differ from actual cash flows. Long-lived assets evaluated for impairment are grouped with other assets to the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. If the sum of the projected undiscounted cash flows (excluding interest) is less than the carrying value of the assets, the assets will be written down to the estimated fair value in the period in which the determination is made. Goodwill Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination. The Company tests its goodwill and other indefinite-lived intangible assets for impairment annually on the first day of its fourth fiscal quarter, or more frequently if certain events or certain changes in circumstances indicate they may be impaired. In assessing the recoverability of goodwill and indefinite life intangible assets, the Company must make a series of assumptions about such things as the estimated future cash flows and other factors to determine the fair value of these assets. In testing the goodwill of its reporting units for impairment, the Company first determines, based on a qualitative assessment, whether it is more likely than not that the fair value of each of its reporting units is less than their respective carrying amounts. The Company has determined that each of its operating segments is a reporting unit. If it is deemed more likely than not that the fair value of a reporting unit is less than the carrying value based on this initial assessment, the next step is a quantitative comparison of the fair value of the reporting unit to its carrying amount. If a reporting unit’s estimated fair value is equal to or greater than that reporting unit’s carrying value, no impairment of goodwill exists and the testing is complete. If the reporting unit’s carrying amount is greater than the estimated fair value, then an impairment loss is recorded for the amount of the difference. When a quantitative analysis is performed, the estimated fair value of goodwill is determined by using a combination of a market approach and an income approach. The market approach estimates fair value by applying sales, earnings and cash flow multiples to each reporting unit’s operating performance. The multiples are derived from comparable publicly-traded companies with similar operating and investment characteristics to the Company’s reporting units. The market approach requires the Company to make a series of assumptions, such as selecting comparable companies and comparable transactions and transaction premiums. In recent years, there has been a decrease in the number of comparable transactions, which makes the market approach of comparable transactions and transaction premiums more difficult to estimate than in previous years. The income approach estimates fair value based on the Company’s estimated future cash flows of each reporting unit, discounted by an estimated weighted-average cost of capital that reflects current market conditions, which reflect the overall level of inherent risk of that reporting unit. The income approach also requires the Company to make a series of assumptions, such as discount rates, revenue projections, profit margin projections and terminal value multiples. The Company estimated discount rates on a blended rate of return considering both debt and equity for comparable publicly-traded companies in the television, radio and digital media industries. These comparable publicly-traded companies have similar size, operating characteristics and/or financial profiles to the Company. The Company also estimated the terminal value multiple based on comparable publicly-traded companies. The Company estimated revenue projections and profit margin projections based on internal forecasts about future performance. Indefinite Life Intangible Assets The Company believes that its broadcast licenses are indefinite life intangible assets. An intangible asset is determined to have an indefinite useful life when there are no legal, regulatory, contractual, competitive, economic or any other factors that may limit the period over which the asset is expected to contribute directly or indirectly to future cash flows. The evaluation of impairment for indefinite life intangible assets is performed by a comparison of the asset’s carrying value to the asset’s fair value. When the carrying value exceeds fair value, an impairment charge is recorded for the amount of the difference. The unit of accounting used to test broadcast licenses represents all licenses owned and operated within an individual market cluster, because such licenses are used together, are complimentary to each other and are representative of the best use of those assets. The Company’s individual market clusters consist of cities or nearby cities. The Company tests its broadcasting licenses for impairment based on certain assumptions about these market clusters. The estimated fair value of indefinite life intangible assets is determined by using an income approach. The income approach estimates fair value based on the estimated future cash flows of each market cluster that a hypothetical buyer would expect to generate, discounted by an estimated weighted-average cost of capital that reflects current market conditions, which reflect the overall level of inherent risk. The income approach requires the Company to make a series of assumptions, such as discount rates, revenue projections, profit margin projections and terminal value multiples. The Company estimates the discount rates on a blended rate of return considering both debt and equity for comparable publicly-traded companies. These comparable publicly-traded companies have similar size, operating characteristics and/or financial profiles to the Company. The Company also estimated the terminal value multiple based on comparable publicly-traded companies in the television, radio and digital media industries. The Company estimated the revenue projections and profit margin projections based on various market clusters signal coverage of the markets and industry information for an average station within a given market. The information for each market cluster includes such things as estimated market share, estimated capital start-up costs, population, household income, retail sales and other expenditures that would influence advertising expenditures. Alternatively, some stations under evaluation have had limited relevant cash flow history due to planned or actual conversion of format or upgrade of station signal. The assumptions the Company makes about cash flows after conversion are based on the performance of similar stations in similar markets and potential proceeds from the sale of the assets. Concentrations of Credit Risk and Trade Receivables The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents and trade accounts receivable. The Company from time to time may have bank deposits in excess of the FDIC insurance limits. As of December 31, 2020, substantially all deposits are maintained in one financial institution. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents. The Company routinely assesses the financial strength of its customers and, as a consequence, believes that its trade receivable credit risk exposure is limited. Trade receivables are carried at original invoice amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis. A valuation allowance is provided for known and anticipated credit losses, as determined by management in the course of regularly evaluating individual customer receivables. This evaluation takes into consideration of a customer’s financial condition and credit history, as well as current economic conditions. Trade receivables are written off when deemed uncollectible. Recoveries of trade receivables previously written off are recorded when received. No interest is charged on customer accounts. Estimated losses for bad debts are provided for in the consolidated financial statements through a charge to expense that aggregated $2.5 million, $2.3 million and $1.8 million for the years ended December 31, 2020, 2019 and 2018, respectively. The net charge off of bad debts aggregated $1.5 million, $2.8 million and $1.2 million for the years ended December 31, 2020, 2019 and 2018, respectively. Dependence on Business Partners The Company is dependent on the continued financial and business strength of its business partners, such as the companies from whom it obtains programming. The Company could be at risk should any of these entities fail to perform their respective obligations to the Company. This in turn could materially adversely affect the Company’s own business, results of operations and financial condition. Disclosures About Fair Value of Financial Instruments The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: The carrying amount of cash and cash equivalents approximates fair value because of the short maturity of those instruments. As of December 31, 2020 and 2019, the fair value of the Company’s long-term debt was approximately $210.5 million and $211.7 million, respectively, based on quoted prices in markets where trading occurs infrequently. The Company’s available for sale securities are valued using quoted prices for similar attributes in active markets. Since these investments are classified as available for sale, they are recorded at their fair market value within “Marketable securities” in the consolidated balance sheets and their unrealized gains or losses are included in “Accumulated other comprehensive income (loss)”. The carrying values of receivables, payables and accrued expenses approximate fair value due to the short maturity of these instruments. Off-Balance Sheet Financings and Liabilities Other than lease commitments, legal contingencies incurred in the normal course of business and employment contracts for key employees (see Notes 7, 12 and 17), the Company does not have any off-balance sheet financing arrangements or liabilities. The Company does not have any majority-owned subsidiaries or any interests in, or relationships with, any material variable-interest entities that are not included in the consolidated financial statements. Income Taxes Deferred income taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when it is determined to be more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. In evaluating the Company’s ability to realize net deferred tax assets, the Company considers all reasonably available evidence including past operating results, tax strategies and forecasts of future taxable income. In considering these factors, the Company makes certain assumptions and judgments that are based on the plans and estimates used to manage the business. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. Value Added Taxes Value added taxes collected from customers and remitted to governmental authorities are accounted for on a net basis, and are therefore excluded from revenues. Advertising Costs Amounts incurred for advertising costs with third parties are expensed as incurred. Advertising expense totaled approximately $0.1 million, $0.5 million and $0.1 million for the years ended December 31, 2020, 2019 and 2018, respectively. Legal Costs Amounts incurred for legal costs that pertain to loss contingencies are expensed as incurred. Repairs and Maintenance All costs associated with repairs and maintenance are expensed as incurred. Business Combinations The Company applies the acquisition method of accounting for business combinations in accordance with GAAP and use estimates and judgments to allocate the purchase price paid for acquisitions to the fair value of the assets, including identifiable intangible assets and liabilities acquired. Such estimates may be based on significant unobservable inputs and assumptions such as, but not limited to, revenue projections, gross margin projections, customer attrition rates, royalty rates, discount rates and terminal growth rate assumptions. The Company uses established valuation techniques and may engage reputable valuation specialists to assist with the valuations. The Company’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. Fair values are subject to refinement for up to one year after the closing date of an acquisition, as information relative to closing date fair values becomes available. Upon the conclusion of the measurement period, any subsequent adjustments are recorded to earnings. Revenue Recognition Television and radio revenue related to the sale of advertising is recognized at the time of broadcast. Revenue for contracts with advertising agencies is recorded at an amount that is net of the commission retained by the agency. Revenue from contracts directly with the advertisers is recorded as gross revenue and the related commission or national representation fee is recorded in operating expense. 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. Digital related revenue is recognized when display or other digital advertisements record impressions on the websites of the Company’s third party publishers or as the advertiser’s previously agreed-upon performance criteria are satisfied. The Company generates revenue under arrangements in which services are sold on a stand-alone basis within a specific segment, and those that are sold on a combined basis across multiple segments. The Company has determined that in such revenue arrangements which contain multiple products and services, revenues are allocated based on the relative fair value of each item and recognized in accordance with the applicable revenue recognition criteria for the specific unit of accounting. Under the Company’s current 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, or MVPDs. 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. The Company recognizes retransmission consent revenue earned as the television signal is delivered to the MVPD. The Company also generates revenue under two current marketing and sales agreements with Univision, which give 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. The Company also generates revenue from agreements associated with its television stations’ spectrum usage rights from a variety of sources, including but not limited to entering into 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 from such agreements is recognized over the period of the lease or when the Company has relinquished all or a portion of its spectrum usage rights for a station or have relinquished its rights to operate a station on the existing channel free from interference. Trade Transactions The Company exchanges broadcast time for certain merchandise and services. Trade revenue is recognized when commercials air at the fair value of the goods or services received or the fair value of time aired, whichever is more readily determinable. Trade expense is recorded when the goods or services are used or received. Trade revenue was approximately $0.2 million, $0.5 million and $0.7 million for each of the years ended December 31, 2020, 2019 and 2018, respectively. Trade costs were approximately $0.2 million, $0.5 million and $0.7 million for each of the years ended December 31, 2020, 2019 and 2018, respectively. 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. Direct operating expenses Direct operating expenses consist primarily of salaries and commissions of sales staff, amounts paid to national representation firms, production and programming expenses, fees for ratings services, and engineering costs. Corporate expenses Corporate expenses consist primarily of salaries related to corporate officers and back office functions, third party legal and accounting services, and fees incurred as a result of being a publicly traded company. Stock-Based Compensation The Company recognizes stock-based compensation according to the provisions of ASC 718, “Stock Compensation”, which requires the measurement and recognition of compensation expense for all stock-based awards made to employees and directors including employee stock options, restricted stock awards, and restricted stock units based on estimated fair values. ASC 718 requires companies to estimate the fair value of stock options on the date of grant using an option pricing model. The fair value of restricted stock awards and restricted stock units is based on the closing market price of the Company’s common stock on the date of grant. The value of the portion of the award that is ultimately expected to vest has been reduced for estimated forfeitures and is recognized as expense over the requisite service periods in the consolidated statements of operations. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company has selected the Black-Scholes option pricing model as the most appropriate method for determining the estimated fair value for stock options. The Black-Scholes option pricing model requires the use of highly subjective and complex assumptions which determine the fair value of stock-based awards, including the option’s expected term, expected volatility of the underlying stock, risk-free rate, and expected dividends. The expected volatility is based on historical volatility of the Company’s common stock and other relevant factors. The expected term assumptions are based on the Company’s historical experience and on the terms and conditions of the stock-based awards. The risk free-rate is based on observed interest rates appropriate for the expected terms of the Company’s stock options. The dividend rate is based on the Company’s dividend policy. The Company classifies cash flows from excess tax benefits from exercised options in excess of the deferred tax asset attributable to stock-based compensation costs as operating cash flows. Earnings Per Share The following table illustrates the reconciliation of the basic and diluted per share computations (in thousands, except share and per share data): Year Ended Year Ended Year Ended December 31, December 31, December 31, 2020 2019 2018 Basic earnings per share: Numerator: Net income (loss) attributable to common stockholders $ (3,910 ) $ (19,712 ) $ 12,161 Denominator: Weighted average common shares outstanding, basic 84,231,212 85,107,301 89,115,997 Per share: Net income (loss) per share attributable to common stockholders $ (0.05 ) $ (0.23 ) $ 0.14 Diluted earnings per share: Numerator: Net income (loss) attributable to common stockholders $ (3,910 ) $ (19,712 ) $ 12,161 Denominator: Weighted average common shares outstanding 84,231,212 85,107,301 89,115,997 Dilutive securities: Stock options - - 629,933 Restricted stock units - - 582,653 Diluted shares outstanding 84,231,212 85,107,301 90,328,583 Per share: Net income (loss) per share attributable to common stockholders $ (0.05 ) $ (0.23 ) $ 0.13 Basic earnings per share is computed as net income divided by the weighted average number of shares outstanding for the period. Diluted earnings per share reflects the potential dilution, if any, that could occur from shares issuable through stock options and restricted stock awards. For the year ended December 31, 2020, 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 892,720. For the year ended December 31, 2019, 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 1,117,216. For the year ended December 31, 2018, a total of 182,847 shares of dilutive securities were not included in the computation of diluted earnings per share because the exercise prices of the dilutive securities were greater than the average market price of the common shares. Comprehensive Income (loss) For the year ended December 31, 2020 the Company had other comprehensive loss, net of tax, of $0.9 million. For the year ended December 31, 2019 the Company had other comprehensive income, net of tax, of $1.3 million. For the year ended December 31, 2018 the Company had other comprehensive loss, net of tax of $ 1.3 Recently Issued Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, also amends other aspects of the guidance to help simplify and promote consistent application of GAAP. ASU 2019-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Newly Adopted Accounting Standards 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 August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement modifies the disclosure requirements on fair value measurements by requiring that Level 3 fair value disclosures include the range and weighted average of significant unobservable inputs used to develop those fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. which did not have an impact on the Company’s financial In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326) Account Receivables The Company adopted ASU 2016-13 on January 1, 2020 using the modified retrospective approach. Adoption of the new standard did not have a material impact on the Company’s consolidated financial statements. The allowance for doubtful accounts is based on the Company’s assessment of the collectibility of customer accounts. The Company periodically reviews the allowance by considering factors such as historical experience, credit quality, the age of the accounts receivable balances, and current economic conditions that may affect a customer’s ability to pay. The Company's exposure to credit losses may increase if its customers are adversely affected by changes such as economic pressures or uncertainty associated with local or global economic recessions, disruptions associated with the COVID-19 pandemic, or other customer-specific factors. Although the Company has historically not experienced significant credit losses, it will continue to periodically review the allowance and make necessary adjustments accordingly. Available for Sale Debt Securities ASU 2016-13 made changes to the accounting for available for sale debt securities. Under the new guidance, at each reporting date, entities must evaluate their individual available for sale debt securities that are in an unrealized loss position and determine whether the decline in fair value below the amortized cost basis results from a credit loss or other factors. The amount of the decline relate |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | 3. ACQUISITIONS Upon consummation of each acquisition the Company evaluates whether the acquisition constitutes a business. If substantially all the fair value is concentrated in a single asset (or group of similar assets) the acquired entity is not a business. An acquisition is considered a business if it is comprised of a complete self-sustaining integrated set of activities and assets consisting of inputs and substantive processes applied to those inputs that are used to generate revenues. For a transferred set of activities and assets to be a business, it must contain all of the inputs and processes necessary for it to continue to conduct normal operations after the transferred set is separated from the transferor, which includes the ability to sustain a revenue stream by providing its outputs to customers. A transferred set of activities and assets fails the definition of a business if it excludes one or more significant items such that it is not possible for the set to continue normal operations and sustain a revenue stream by providing its products and/or services to customers. All business acquisitions have been accounted for as purchase business combinations with the operations of the businesses included subsequent to their acquisition dates. The allocation of the respective purchase prices is generally based upon independent appraisals and or management’s estimates of the discounted future cash flows to be generated from the media properties for intangible assets, and replacement cost for tangible assets. Deferred income taxes are provided for temporary differences based upon management’s best estimate of the tax basis of acquired assets and liabilities that will ultimately be accepted by the applicable taxing authority. For business combinations where noncontrolling interests remain after the acquisition, assets (including goodwill) and liabilities of the acquired business are recorded at the full fair value and the portion of the acquisition date fair value attributable to noncontrolling interests is recorded as a separate line item within the equity section or, as applicable to redeemable noncontrolling interests, between the liabilities and equity sections of the Company’s consolidated balance sheets. Policies related to redeemable noncontrolling interest involve judgment and complexity, specifically on the classification of the noncontrolling interest in the Company’s consolidated balance sheet. Further, there is significant judgment in determining whether an equity instrument is currently redeemable or not currently redeemable but probable that the equity instrument will become redeemable. Additionally, there are also significant estimates made in the valuation of the redeemable noncontrolling interest. Cisneros Interactive On October 13, 2020 In connection with the acquisition, the Company also entered into a Put and Call Option Agreement (the “Put and Call Agreement”). Subject to the terms of the Put and Call Agreement, if certain minimum EBITDA targets are met, the Sellers have the right (the “Put Option”), between March 15, 2024 and June 13, 2024, to cause the Company to purchase all (but not less than all) of the remaining 49% Additionally, subject to the terms of the Put and Call Agreement, the Company has the right (the “Call Option”), in calendar year 2024, to purchase all (but not less than all) of the remaining 49% of the issued and outstanding shares of Cisneros Interactive at a purchase price to be based on a pre-determined multiple of six times of Cisneros Interactive’s 12-month EBITDA in calendar year 2023. Applicable accounting guidance requires an equity instrument that is redeemable for cash or other assets to be classified outside of permanent equity if it is redeemable (a) at a fixed or determinable price on a fixed or determinable date, (b) at the option of the holder, or (c) upon the occurrence of an event that is not solely within the control of the issuer. As a result of the put and call option redemption feature, and since the redemption is not solely within the control of the Company, the noncontrolling interest is considered redeemable, and is classified in temporary equity within the Company’s Consolidated Balance Sheets initially at its acquisition date fair value. The noncontrolling interest is adjusted each reporting period for income (or loss) attributable to the noncontrolling interest as well as any applicable distributions made. Since the noncontrolling interest is not currently redeemable and it is not probable that it will become redeemable, the Company is not currently required to adjust the amount presented in temporary equity to its redemption value. The table below presents the reconciliation of changes in redeemable noncontrolling interests (in thousands): Years Ended December 31, 2020 2019 2018 Beginning balance $ - $ - $ - Initial fair value of redeemable noncontrolling interests 30,762 - - Net income (loss) attributable to redeemable noncontrolling interest 2,523 - - Ending balance $ 33,285 $ - $ - The Company is in the process of completing the purchase price allocation The measurement period remains open pending the finalization of the pre-acquisition tax-related items Cash $ 8.7 Accounts receivable 50.5 Other assets 6.2 Intangible assets subject to amortization 41.7 Goodwill 12.3 Current liabilities (48.1 ) Deferred tax (10.6 ) Redeemable noncontrolling interest (30.8 ) Intangibles assets subject to amortization acquired includes: Intangible Asset Estimated Fair Value (in millions) Weighted average life (in years) Publisher relationships $ 34.4 10.0 Advertiser relationships 5.2 4.0 Trade name 1.7 2.5 Non-Compete agreements 0.4 4.0 The fair value of the assets acquired includes trade receivables of $50.5 million. The gross amount due under contract is $54.0 million, of which $3.5 million is expected to be uncollectable. During the year ended December 31, 2020, since the acquisition date, Cisneros Interactive generated net revenue and net income of $89.2 million and $5.1 million, respectively. The goodwill, which is not expected to be deductible for tax purposes, is assigned to the digital segment and is attributable to Cisneros Interactive’s workforce and expected synergies from combining Cisneros Interactive’s operations with those of the Company. As noted above, the acquisition of a majority interest in Cisneros Interactive included a redeemable noncontrolling interest and a Put and Call Agreement. The fair value of the redeemable noncontrolling interest which includes the Put and Call Agreement recognized on the acquisition date was $30.8 million. The following unaudited pro forma information for the years ended December 31, 2020 and 2019 has been prepared to give effect to the acquisition of a majority interest in Cisneros Interactive as if the acquisition had occurred on January 1, 2019. This pro forma information was adjusted to exclude acquisition fees and costs of $0.9 million for the year ended December 31, 2020, which were expensed in connection with the acquisition. This pro forma information does not purport to represent what the actual results of operations of the Company would have been had this acquisition occurred on such date, nor does it purport to predict the results of operations for any future periods. Years Ended Ended December 31, 2020 2019 Pro Forma: Total revenue $ 488,137 $ 432,966 Net income (loss) 5,257 (11,403 ) Net income (loss) attributable to redeemable noncontrolling interest (5,343 ) (4,071 ) Net income (loss) attributable to common stockholders $ (86 ) $ (15,474 ) Basic and diluted earnings per share: Net income (loss) per share, attributable to common stockholders, basic and diluted $ 0.00 $ (0.18 ) Weighted average common shares outstanding, basic and diluted 84,231,212 85,107,301 KMBH-TV On November 7, 2019, the Company completed the acquisition of television station KMBH-TV, serving the McAllen, Texas area, for an aggregate cash consideration of $2.9 million. The transaction was treated as an asset acquisition with $2.3 million of the purchase price recorded in “Intangible assets not subject to amortization”, and the remainder recorded in “Property and equipment, net of accumulated depreciation” on the Company’s consolidated balance sheet. Smadex On June 11, 2018, the Company completed the acquisition of 100% of the stock of Smadex, S.L. (“Smadex”), a mobile programmatic solutions provider that delivers performance-based solutions and data insights for marketers. The transaction was treated as a business acquisition in accordance with the guidance of ASC 805. The Company acquired Smadex to expand its technology platform, broaden its digital solutions offering and enhance its execution of performance campaigns. The transaction was funded from cash on hand for an aggregate cash consideration of $3.5 million, net of $1.2 million of cash acquired. The following is a summary of the final purchase price allocation for the Company’s acquisition of Smadex (in millions): Accounts receivable $ 0.9 Other current assets 0.4 Intangible assets subject to amortization 2.0 Goodwill 3.6 Current liabilities (2.8 ) Long-term liabilities (0.2 ) Deferred tax (0.4 ) The fair value of assets acquired includes trade receivables of $0.9 million. The gross amount due under contract is $0.9 million, all of which is expected to be collectible. During the year ended December 31, 2018, Smadex generated net revenue and expenses of $6.4 million and $5.8 million, respectively, which are included in our consolidated statements of operations. The goodwill, which is not expected to be deductible for tax purposes, is assigned to the digital segment and is attributable to the Smadex workforce and expected synergies from combining its operations with those of the Company. The following unaudited pro forma information for the years ended December 31, 2018 and 2017 has been prepared to give effect to the acquisition of Smadex as if the acquisition had occurred on January 1, 2017. This pro-forma information does not purport to represent what the actual results of operations of the Company would have been had this acquisition occurred on such date, nor does it purport to predict the results of operations for future periods. Years Ended December 31, 2018 Pro Forma: Total revenue $ 307,805 Net income (loss) $ 13,133 Basic and diluted earnings per share: Net income per share, basic $ 0.15 Net income per share, diluted $ 0.15 Weighted average common shares outstanding, basic 89,115,997 Weighted average common shares outstanding, diluted 90,328,583 The unaudited pro forma information for the year ended December 31, 2018 was adjusted to exclude acquisition fees and costs of $0.4 million, which were expensed in connection with the acquisition. KMCC-TV On January 16, 2018, the Company completed the acquisition of television station KMCC-TV, which serves the Las Vegas, Nevada area, for an aggregate cash consideration of $3.6 million. The transaction was treated as an asset acquisition with the majority of the purchase price recorded in “Intangible assets not subject to amortization” on the Company’s consolidated balance sheet. On April 2, 2020, the Company sold KMCC-TV to ION Media Stations, Inc. for $4.0 million. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenues | 4. REVENUES 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. 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 or cost per installation). 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 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 consent 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 The following table presents our revenues disaggregated by major source (in thousands): Years Ended December 31, 2020 2019 2018 Broadcast advertising $ 152,677 $ 148,082 $ 169,009 Digital advertising 143,309 68,908 80,982 Spectrum usage rights 5,429 13,061 2,976 Retransmission consent 36,766 35,362 35,066 Other 5,845 8,162 9,782 Total revenue $ 344,026 $ 273,575 $ 297,815 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 (in thousands): Years Ended December 31, 2020 2019 2018 Local direct $ 21,334 $ 25,972 $ 27,522 Local agency 48,702 58,425 61,226 National agency 82,641 63,685 80,261 Total revenue $ 152,677 $ 148,082 $ 169,009 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 change in the deferred revenue balance for the year ended December 31, 2020 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, 2019. 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, 2019 Increase Decrease * December 31, 2020 Deferred revenue $ 2,390 3,127 (2,390 ) $ 3,127 * The amount disclosed in the decrease column reflects revenue that has been recorded during the year ended December 31, 2020. (in thousands) December 31, 2018 Increase Decrease * December 31, 2019 Deferred revenue $ 2,759 2,390 (2,759 ) $ 2,390 * The amount disclosed in the decrease column reflects revenue that has been recorded during the year ended December 31, 2019. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 5. GOODWILL AND OTHER INTANGIBLE ASSETS The carrying amount of goodwill for each of the Company’s operating segments for the years ended December 31, 2020 and 2019 is as follows (in thousands): December 31, December 31, December 31, 2018 Acquisition Currency Impairment 2019 Acquisition Impairment 2020 Television $ 40,549 — — — $ 40,549 — — $ 40,549 Digital 33,743 — (67 ) (27,714 ) 5,962 12,332 (800 ) 17,494 Radio — — — — — — — — Consolidated $ 74,292 $ — $ (67 ) $ (27,714 ) $ 46,511 $ 12,332 $ (800 ) $ 58,043 The composition of the Company’s acquired intangible assets and the associated accumulated amortization as of December 31, 2020 and 2019 is as follows (in thousands): 2020 2019 Weighted average remaining life in years Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Television network affiliation agreements 7 $ 67,488 $ 59,726 $ 7,762 $ 67,489 $ 58,338 $ 9,151 Customer base 4 47,052 7,874 39,178 10,045 6,414 3,631 Pre-sold advertising contracts and other 5 38,624 36,152 2,472 39,057 35,067 3,990 Total assets subject to amortization: $ 153,164 $ 103,752 $ 49,412 $ 116,591 $ 99,819 $ 16,772 Intangible assets not subject to amortization: FCC licenses and spectrum usage rights 216,653 252,544 Total intangible assets $ 266,065 $ 269,316 The aggregate amount of amortization expense for the years ended December 31, 2020, 2019 and 2018 was approximately $4.0 million, $6.0 million and $6.1 million, respectively. Estimated amortization expense for the next five years and thereafter is as follows (in thousands): Estimated Amortization Expense Amount 2021 $ 5,874 2022 5,419 2023 5,229 2024 4,339 2025 3,255 Thereafter 25,296 Total $ 49,412 Impairment The Company has identified each of its three operating segments to be separate reporting units: television, radio, and digital. The carrying values of the reporting units are determined by allocating all applicable assets (including goodwill) and liabilities based upon the unit in which the assets are employed and to which the liabilities relate, considering the methodologies utilized to determine the fair value of the reporting units. Goodwill and indefinite life intangibles are not amortized but are tested annually for impairment, or more frequently, if events or changes in circumstances indicate that the assets might be impaired. The annual testing date is October 1. The Company recorded impairment charges of goodwill in its digital reporting unit totaling $27.7 million during the year ended December 31, 2019. In addition, the Company recorded impairment charges of FCC licenses in its television and radio reporting units in the amount of $4.0 million and $0.2 million, respectively, during the year ended December 31, 2019. Due to the continuing economic crisis resulting from the COVID-19 pandemic, the Company experienced a decline in performance across all its reporting units beginning late in the first quarter of 2020. Additionally, the digital reporting unit was already facing declining results prior to the onset of the pandemic, caused by continuing competitive pressures and rapid changes in the digital advertising industry, which then further accelerated late in the first quarter of 2020 as a result of the economic crisis brought about from the pandemic. The results of the television and radio reporting units prior to the onset of the pandemic and the resulting economic crisis were exceeding internal budgets, driven in large part by political advertising revenue, but declined sharply in the last few weeks of the first quarter of 2020. As a result, the Company updated its internal forecasts of future performance and determined that triggering events had occurred during the first quarter of 2020 that required interim impairment assessments. As a result of the concluded The Company also conducted its annual review of the fair value of the television television Based on the assumptions and estimates in Note 2 above, the television reporting unit fair value exceeded its carrying value by 19%, resulting in no The calculation of the fair value of the reporting unit requires estimates of the discount rate and the long term projected growth rate. If that discount rate were to increase by 0.5%, the fair value of the reporting unit would decrease by 5%. If the long term projected growth rate were to decrease by 0.5%, the fair value of the reporting unit would decrease by 3%. As of the annual goodwill testing date, October 1, 2020, there was $5.2 million of goodwill in the digital reporting unit. The fair value of the digital reporting unit exceeded its carrying value by 20%, resulting in no impairment charge in the fourth quarter of 2020 . The Company did not have any goodwill in its radio reporting unit at December 31, 2020 and 2019. Uncertain economic conditions, fiscal policy and other factors beyond the Company’s control potentially could have an adverse effect on the capital markets, which would affect the discount rate assumptions, terminal value estimates, transaction premiums and comparable transactions. Such uncertain economic conditions could also have an adverse effect on the fundamentals of the business and results of operations, which would affect the internal forecasts about future performance and terminal value estimates. Furthermore, such uncertain economic conditions could have a negative impact on the digital advertising industry in general or the industries of those customers who advertise with the digital reporting unit, including, among others, the automotive, financial and other services, telecommunications, travel and restaurant industries, which in the aggregate provide a significant amount of the historical and projected advertising revenue. The activities of competitors could have an adverse effect on the internal forecasts about future performance and terminal value estimates. Changes in technology or audience preferences, including increased competition from other forms of advertising-based mediums, could have an adverse effect on the internal forecasts about future performance, terminal value estimates and transaction premiums. Finally, the risk factors that the Company identifies from time to time in its SEC reports could have an adverse effect on the internal forecasts about future performance, terminal value estimates and transaction premiums. There can be no assurance that the estimates and assumptions made for the purpose of the Company’s goodwill impairment testing will prove to be accurate predictions of the future. If the assumptions regarding internal forecasts of future performance of the reporting unit are not achieved, if market conditions change and affect the discount rate, or if there are lower comparable transactions and transaction premiums, the Company may be required to record goodwill impairment charges in future periods. It is not possible at this time to determine if any such future change in the Company’s assumptions would have an adverse impact on the valuation models and result in impairment, or if it does, whether such impairment charge would be material. The Company also conducted a review of the fair value of the television and radio FCC licenses in 2020 and 2019. The estimated fair value of indefinite life intangible assets is determined by an income approach. The income approach estimates fair value based on the estimated future cash flows of each market cluster that a hypothetical buyer would expect to generate, discounted by an estimated weighted-average cost of capital that reflects current market conditions, which reflect the level of inherent risk. The income approach requires the Company to make a series of assumptions, such as discount rates, revenue projections, profit margin projections and terminal value multiples. The Company estimates the discount rates on a blended rate of return considering both debt and equity for comparable publicly-traded companies. These comparable publicly-traded companies have similar size, operating characteristics and/or financial profiles to the Company. The Company also estimated the terminal value multiple based on comparable publicly-traded companies. The Company estimated the revenue projections and profit margin projections based on various market clusters signal coverage of the markets and industry information for an average station within a given market. The information for each market cluster includes such things as estimated market share, estimated capital start-up costs, population, household income, retail sales and other expenditures that would influence advertising expenditures. Alternatively, some stations under evaluation have had limited relevant cash flow history due to planned or actual conversion of format or upgrade of station signal. The assumptions the Company makes about cash flows after conversion are based on the performance of similar stations in similar markets and potential proceeds from the sale of the assets. During the first quarter of 2020 the Company conducted a review of certain of the indefinite life intangible assets in its television and radio reporting units. Based on the assumptions and estimates described above, the carrying values of certain FCC licenses exceeded their fair values. As a result, the Company recorded impairment charges of FCC licenses in its television and radio reporting units in the amount of $23.5 million and $8.8 million, respectively in the first quarter of 2020. Additionally, during the annual testing date, October 1, 2020, the Company noted that the carrying value of two radio FCC license exceeded their fair value. As a result, the Company recorded an impairment charge in the amount of $0.2 million. During the first quarter of 2020 the Company conducted a review of certain long-lived assets using a two-step approach. In the first step, the carrying value of the asset group is compared to the projected undiscounted cash flows to determine recoverability. If the asset carrying value is not recoverable, then the fair value of the asset group is determined in the second step using an income approach. The income approach requires us to make a series of assumptions, such as discount rates, revenue projections, profit margin projections and useful lives. Based on the assumptions and estimates described above, the carrying values of long-lived assets in the digital reporting unit exceeded their fair values. As a result, the Company recorded impairment charges related to Intangibles subject to amortization of $5.3 million, and property and equipment of $1.5 million, in the first quarter of 2020. No impairment charges related to Intangibles subject to amortization were recorded during the remainder of 2020. At the Company’s impairment testing date of October 1, 2020 and at December 31, 2020, the book value of net assets exceeded the market capitalization of the Company. During times of stock price volatility, significant judgment must be applied to determine whether stock price changes are a short term swing or a longer-term trend. The Company performed an annual test of its goodwill and indefinite life intangible assets as of October 1, 2020, and concluded that the recorded values were not impaired based on the analysis. The key assumptions used in this analysis were: (a) the Company’s assets are still producing operating income and (b) the fair value of its existing assets, based on the Company’s analysis, remains sufficient to support the carrying value of the related assets including goodwill. There were no events that occurred subsequent to the annual impairment testing date that suggest that it is more likely than not that the fair value of any of the Company’s reporting units or indefinite life intangible assets are less than the respective carrying amounts. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 6. PROPERTY AND EQUIPMENT Property and equipment as of December 31, 2020 and 2019 consists of (in millions): Estimated useful life (years) 2020 2019 Buildings 40 $ 19.7 $ 21.9 Construction in progress — 1.9 15.1 Transmission, studio and other broadcast equipment 5-15 170.3 162.1 Office and computer equipment 3-7 33.9 31.4 Transportation equipment 5 6.8 6.3 Leasehold improvements and land improvements Lesser of lease life or useful life 22.0 22.1 254.6 258.9 Less accumulated depreciation 191.2 188.6 63.4 70.3 Land 8.6 9.3 $ 72.0 $ 79.6 Depreciation expense was $13.3 million, $10.6 million, and $10.1 million for the years ended December 31, 2020, 2019 and 2018, respectively. As part of the FCC auction for broadcast spectrum that concluded in 2017, the FCC has reassigned some stations to new post-auction channels and will reimburse station owners for the cost of the relocation. The Company has received notification from the FCC that 17 of its stations have been assigned to new channels with an estimated reimbursable cost of approximately $16.0 million. The Company recorded gains on involuntary conversion associated with the repack process |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | 7. LEASES The Company adopted ASC 842, “Leases”, in the first quarter of 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 The Company’s leases are considered operating leases and primarily consist of real estate such as office space, broadcasting towers, land and land easements. Right of Use (“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’s 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 30 years. Certain of the Company’s lease agreements include rental payments based on changes in the consumer price index (“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 Company leases facilities and broadcast equipment under various non-cancelable operating lease agreements with various terms and conditions, expiring at various dates through November 2050. The Company’s corporate headquarters are located in Santa Monica, California. The Company leases approximately 16,000 square feet of space in the building housing its corporate headquarters under a lease expiring in 2021 (see Note 20). The Company also leases approximately 41,000 square feet of space in the building housing its radio network in Los Angeles, California, under a lease expiring in 2026. The types of properties required to support each of the Company’s television and radio stations typically include offices, broadcasting studios and antenna towers where broadcasting transmitters and antenna equipment are located. The majority of the Company’s office, studio and tower facilities are leased pursuant to non-cancelable long-term leases. The Company also owns the buildings and/or land used for office, studio and tower facilities at certain of its television and/or radio properties. The Company owns substantially all of the equipment used in its television and radio broadcasting business. The following table summarizes the expected future payments related to lease liabilities as of December 31, 2020: (in thousands) 2021 $ 9,421 2022 8,231 2023 6,560 2024 5,587 2025 5,245 2026 and thereafter 15,629 Total minimum payments $ 50,673 Less amounts representing interest (11,608 ) Present value of minimum lease payments 39,065 Less current operating lease liabilities (7,290 ) Long-term operating lease liabilities $ 31,775 The weighted average remaining lease term and the weighted average discount rate used to calculate the Company’s lease liabilities as of December 31, 2020 were 9.9 years and 6.3%, respectively. The weighted average remaining lease term and the weighted average discount rate used to calculate the Company’s lease liabilities as of December 31, 2019 were 11.4 years and 6.2%, respectively. The following table summarizes lease payments and supplemental non-cash disclosures: Years Ended December 31, (in thousands) 2020 2019 Cash paid for amounts included in lease liabilities: Operating cash flows from operating leases $ 12,049 $ 10,582 Non-cash additions to operating lease assets $ 2,593 $ 4,797 The following table summarizes the components of lease expense: Years Ended December 31, (in thousands) 2020 2019 Operating lease cost $ 9,891 $ 10,232 Variable lease cost 672 1,978 Short-term lease cost 848 668 Total lease cost $ 11,411 $ 12,878 For the year ended December 31, 2020, lease cost of $5.9 million, $4.7 million and $0.8 million, were recorded to direct operating expenses, selling, general and administrative expenses and corporate expenses, respectively. For the year ended December 31, 2019, lease cost of $6.1 million, $6.0 million and $0.8 million, were recorded to direct operating expenses, selling, general and administrative expenses and corporate expenses, respectively Total rent expense under operating leases, including rent under month-to-month arrangements, was approximately $12.0 million for the year ended December 31, 2018. |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 12 Months Ended |
Dec. 31, 2020 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | 8. ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses as of December 31, 2020 and 2019 consist of (in millions): 2020 2019 Accounts payable $ 49.7 $ 11.5 Accrued payroll and compensated absences 7.4 4.5 Accrued bonuses 4.0 4.3 Professional fees 1.3 0.3 Deferred revenue 3.1 2.4 Accrued national representation fees 1.6 1.0 Income taxes payable 3.4 8.5 Other taxes payable 10.4 2.1 Amounts due under joint sales agreements 1.2 1.3 Accrued property taxes 1.8 1.5 Accrued capital expenditures 1.2 0.7 Accrued media costs – digital 36.2 9.9 Other 5.5 5.9 $ 126.8 $ 53.9 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long Term Debt | 9. LONG TERM DEBT Long-term debt as of December 31, 2020 and 2019 is summarized as follows (in millions): 2020 2019 Term Loan $ 215.3 $ 218.2 Less current maturities 3.0 3.0 212.3 215.2 Less unamortized debt issuance costs 1.8 2.2 $ 210.5 $ 213.0 The scheduled maturities of long-term debt as of December 31, 2020 are as follows (in millions): Year Amount 2021 $ 3.0 2022 3.0 2023 3.0 2024 206.3 2025 - Thereafter - $ 215.3 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 (a) to repay in full all of the Company’s and its subsidiaries’ outstanding obligations under the Company’s previous credit facility and to terminate the credit agreement relating thereto (the “2013 Credit Agreement”), (b) to 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 the Company’s 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%. As of December 31, 2020, the interest rate on the Term Loan B was 2.90%. The Term Loan B Facility expires on November 30, 2024 (the “Maturity Date”). 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 LIBOR 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. In December 2019, the Company made a prepayment of $25.0 million to reduce the amount of loans outstanding under our Term Loan B Facility. The Company did not make a prepayment in 2020. On April 30, 2019 , the Company entered into an amendment to the 2017 Credit Agreement, which became effective on May 1, 2019. Pursuant to that amendment, the lenders under the 2017 Credit Facility waived any events of default that may have arisen under the 2017 Credit Agreement in connection with the Company's failure to timely deliver its financial statements for the fiscal year ended December 31, 2018, and amended the 2017 Credit Agreement, giving the Company until May 31, 2019 to deliver the 2018 financial statements. Subsequent to this amendment and prior to the May 31, 2019 deadline, the Company delivered the 2018 financial statements in full, and therefore was not in default under the 2017 Credit Agreement, as amended . The carrying amount of the Term Loan B Facility as of December 31, 2020 was was approximately As of December 31, 2020, the Company believes that it is in compliance with all covenants in the 2017 Credit Agreement. The 2017 Credit Agreement contains a covenant that the Company deliver its financial statements and certain other information for each fiscal year within 90 days after the end of each fiscal year. As a result of the Company’s expanding business operations, primarily related to the acquisition of a majority interest in Cisneros Interactive, the Company did not deliver its financial statements and other information within 90 days after the end of the fiscal year ended December 31, 2020, and as a result the Company did not satisfy the requirement of this covenant in the 2017 Credit Agreement. The 2017 Credit Agreement provides an additional period of 30 days for the Company to satisfy such covenant, and with the filing of this Annual Report on Form 10-K the Company believes it has satisfied the requirements of the 2017 Credit Agreement with respect to the delivery of the Company’s financial statements and other information for the fiscal year ended December 31, 2020. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 10. FAIR VALUE MEASUREMENTS 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): December 31, 2020 Total Fair Value and Carrying Value on Balance Sheet Fair Value Measurement Category Level 1 Level 2 Level 3 Assets: Money market account $ 59.9 $ — $ 59.9 $ — Certificate of deposit $ 2.8 $ — $ 2.8 $ — Corporate bonds $ 25.2 $ — $ 25.2 $ — December 31, 2019 Total Fair Value and Carrying Value on Balance Sheet Fair Value Measurement Category Level 1 Level 2 Level 3 Assets: Money market account $ 21.3 $ — $ 21.3 $ — Certificate of deposit $ 6.1 $ — $ 6.1 $ — Corporate bonds $ 85.6 $ — $ 85.6 $ — As of December 31, 2020, 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 Consolidated Balance Sheets and their unrealized gains or losses are included in other comprehensive income. As of December 31, 2020, 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 $ 2,796 $ 18 $ 24,941 $ 233 Due after one year through five years - - - - Total $ 2,796 $ 18 $ 24,941 $ 233 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. INCOME TAXES The components of income (loss) before provision for income taxes for the years ended December 31, 2020, 2019 and 2018 (in millions): 2020 2019 2018 Domestic $ 2.0 $ (0.4 ) $ 23.5 Foreign (1.9 ) (10.9 ) (2.1 ) Income (loss) before provision for income taxes $ 0.1 $ (11.3 ) $ 21.4 The provision (benefit) for income taxes from continuing operations for the years ended December 31, 2020, 2019 and 2018 (in millions): 2020 2019 2018 Current Federal $ 1.2 $ (0.1 ) $ 0.2 State (1.2 ) 9.4 0.5 Foreign 1.5 1.9 1.5 $ 1.5 $ 11.2 $ 2.2 Deferred Federal $ 0.8 $ 2.9 $ 5.0 State (1.0 ) (4.0 ) 2.2 Foreign 0.2 (1.9 ) (1.5 ) - (3.0 ) 5.7 Total provision for taxes $ 1.5 $ 8.2 $ 7.9 The income tax provision (benefit) differs from the amount of income tax determined by applying the Company’s federal corporate income tax rate of 21% to pre-tax income for the years ended December 31, 2020, 2019 and 2018 due to the following (in millions): 2020 2019 2018 Computed “expected” tax provision (benefit) $ - $ (2.4 ) $ 4.5 Change in income tax resulting from: State taxes, net of federal benefit 0.7 1.0 1.5 Change in fair value of earnout - (1.6 ) 0.4 Non-deductible executive compensation 0.4 0.3 0.3 Non-deductible expenses 0.2 0.3 0.3 Foreign income 0.1 0.2 - State tax impact of previously deferred gain from FCC auction for broadcast spectrum (2.5 ) 2.7 - Transaction costs 0.1 - 0.1 Change in valuation allowance 1.7 - - Change in state tax rate 0.5 0.4 0.5 Stock compensation 0.2 0.4 0.5 Change in unrecognized tax benefits 0.1 0.7 (0.3 ) Impairment 0.2 6.3 - Other (0.2 ) (0.1 ) 0.1 $ 1.5 $ 8.2 $ 7.9 The components of the deferred tax assets and liabilities at December 31, 2020 and 2019 consist of the following (in millions): 2020 2019 Deferred tax assets: Accrued expenses $ 1.9 $ 0.7 Accounts receivable 1.0 0.6 Net operating loss carryforward 16.4 20.5 Stock-based compensation 1.1 1.2 Credits 0.1 0.1 Lease obligations 10.1 12.6 Other comprehensive income 0.4 — Other 0.6 0.6 Total deferred tax assets 31.6 36.3 Valuation allowance (1.7 ) - Net deferred tax assets $ 29.9 $ 36.3 Deferred tax liabilities: Intangible assets $ (69.1 ) $ (65.7 ) Property and equipment (7.2 ) (4.0 ) Lease assets (8.4 ) (10.9 ) Other (0.2 ) — Total deferred tax liabilities (84.9 ) (80.6 ) Net deferred tax liabilities $ (55.0 ) $ (44.3 ) As of December 31, 2020, the Company has federal, state and foreign net operating loss carryforwards of approximately $59 million, $58 million, and $5 million, respectively, available to offset future taxable income. The federal net operating loss carryforwards will expire during the years 2031 through 2033, to the extent they are not utilized. Any federal net operating losses incurred after 2017 can be carried forward indefinitely and the Company did not incur net operating losses in 2018, 2019, or 2020. The state net operating loss carryforwards will expire during the years 2028 through 2037, to the extent they are not utilized. For tax purposes, the Company deferred gain recognized from FCC auction for broadcast spectrum that concluded in 2017 under Internal Revenue Codes 1031 and 1033. Under these provisions, the Company is able to acquire qualified assets to defer the tax gain until the acquired assets are ultimately sold. To the extent that the Company is not able to acquire qualified assets during the allowed time period, the deferred gain is recognized. The window to acquire qualified assets expired as of December 31, 2019. Accordingly, the Company has reflected the tax effect of gain recognition which resulted in utilization of net operating losses and accrual of income tax payable. Utilization of the Company’s U.S. federal and certain state net operating loss and tax credit carryovers may be subject to substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code and similar state provisions. Such an annual limitation could result in the expiration of the net operating loss carryforwards before utilization. As of December 31, 2020, the Company believes that utilization of its federal net operating losses and foreign tax credits are not limited under any ownership change limitations provided under the Internal Revenue Code. Due to the enactment of Tax Cuts and Jobs Act (“the Tax Act”) in December 2017, the Company is subject to a tax on global intangible low-taxed income (“GILTI”). GILTI is a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. Companies subject to GILTI have the option to account for the GILTI tax as a period cost if and when incurred, or to recognize deferred taxes for temporary differences including outside basis differences expected to reverse as GILTI. The Company has elected to account for GILTI as a period cost, and therefore has included GILTI expense in its effective tax rate calculation for the period. The Company periodically evaluates the realizability of the deferred tax assets and, if it is determined that it is more likely than not that the deferred tax assets are realizable, adjusts the valuation allowance accordingly. Valuation allowances are established and maintained for deferred tax assets on a “more likely than not” threshold. The process of evaluating the need to maintain a valuation allowance for deferred tax assets is highly subjective and requires significant judgment. The Company has considered the following possible sources of taxable income when assessing the realization of the deferred tax assets: (1) future reversals of existing taxable temporary differences; (2) taxable income in prior carryback years; (3) future taxable income exclusive of reversing temporary differences and carryforwards; and (4) tax planning strategies. Based on the Company’s analysis and a review of all positive and negative evidence such as historical operations, future projections of taxable income and tax planning strategies that are prudent and feasible, the Company determined that it was more likely than not that its deferred tax assets would be realized for all jurisdictions with the exception of the Company’s digital operations located in Spain. As a result of recurring losses from the digital operations in Spain, the Company has determined that it is more likely than not that deferred tax assets of approximately $ 1.7 million at December 31, 2020 will not be realized and therefore the Company has established a valuation allowance on those assets . The Company addresses uncertainty in tax positions according to the provisions of ASC 740, “Income Taxes”, which clarifies the accounting for income taxes by establishing the minimum recognition threshold and a measurement attribute for tax positions taken or expected to be taken in a tax return in order to be recognized in the financial statements. The following table summarizes the activity related to the Company’s unrecognized tax benefits (in millions): Amount Balance at December 31, 2018 $ 6.0 Increase in balances related to prior year tax positions 0.7 Balance at December 31, 2019 $ 6.7 Lapse of statute (0.4 ) Interest accrued 0.1 Decrease in balances related to prior year tax positions (2.1 ) Balance at December 31, 2020 $ 4.3 As of December 31, 2020, the Company had $4.3 million of gross unrecognized tax benefits for uncertain tax positions, of which $1.2 million would affect the effective tax rate if recognized. The Company anticipates that the amount of unrecognized tax benefits as of December 31, 2020 may significantly decrease by $3.6 million within the next 12 months. Of that amount, $0.6 million would impact the effective tax rate. The Company recognizes interest and penalties related to income tax matters as a component of income tax expense. As of December 31, 2020, the Company had $0.1 million of accrued interest and penalties related to uncertain tax positions due to the net operating losses. The Company is subject to taxation in the United States, various states, and various foreign jurisdictions . The Company intends to indefinitely reinvest its unremitted earnings in its foreign subsidiaries, and accordingly has not provided deferred tax liabilities on those earnings. The Company has not determined at this time an estimate of total amount of unremitted earnings, as it is not practical at this time. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. COMMITMENTS AND CONTINGENCIES The Company has non-cancelable agreements with certain media research and ratings providers, expiring at various dates through December 2024, to provide television and radio audience measurement services. Pursuant to these agreements, the Company is obligated to pay these providers a total of approximately $10.5 million. The 2021 and 2022 annual commitments total approximately $7.5 million and $1.4 million, respectively. The annual commitments beyond 2022 total approximately $1.6 million. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | 13. STOCKHOLDERS’ EQUITY The Company’s Second Amended and Restated Certificate of Incorporation authorize both common and preferred stock. Common Stock The Company’s common stock has three classes, identified as Class A common stock, Class B common stock and Class U common stock. The Class A common stock and Class B common stock have similar rights and privileges, except that the Class B common stock is entitled to ten votes per share as compared to one vote per share for the Class A common stock. Each share of Class B common stock is convertible at the holder’s option into one fully paid and non-assessable share of Class A common stock and is required to be converted into one share of Class A common stock upon the occurrence of certain events as defined in the Second Amended and Restated Certificate of Incorporation. The Class U common stock, all of which is held by Univision, has limited voting rights and does not include the right to elect directors. Each share of Class U common stock is automatically convertible into one share of the Company’s Class A common stock (subject to adjustment for stock splits, dividends or combinations) in connection with any transfer of such shares of Class U common stock to a third party that is not an affiliate of Univision. In addition, 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 of Class U common stock, the Company may not, without the consent of Univision, merge, consolidate or enter into a business combination, dissolve or liquidate the Company or dispose of any interest in any Federal Communications Commission, or FCC, license with respect to television stations which are affiliates of Univision, among other things. Class U Common stock is entitled to dividends as and when declared on common stock. During the year ended December 31, 2020, the Company paid cash dividends totaling $0.13 per share, or $10.5 million in the aggregate, on all shares of Class A, Class B, and Class U common stock. During the year ended December 31, 2019, the Company paid cash dividends totaling $0.20 per share, or $17.0 million in the aggregate, on all shares of Class A, Class B, and Class U common stock. Preferred Stock As of December 31, 2020 and 2019, there were no shares of any series of preferred stock issued and outstanding. 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 Class A 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. 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 $45.0 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 in order to preserve cash during the continuing economic crisis resulting from the COVID-19 pandemic Treasury stock is included as a deduction from equity in the Stockholders’ Equity section of the Unaudited Consolidated Balance Sheets. Shares repurchased pursuant to the Company’s share repurchase program are retired during the same calendar year. The Company repurchased 0.3 million shares of Class A common stock at an average price of $2.02, for an aggregate purchase price per share of approximately $0.5 million, during the year ended December 31, 2020. The Company repurchased 3.8 million shares of Class A common stock at an average price per share of $3.30, for an aggregate purchase price of approximately $12.6 million, during the year ended December 31, 2019. The Company repurchased 3.5 million shares of Class A common stock at an average price per share of $3.90, for an aggregate purchase price of approximately $13.8 million, during the year ended December 31, 2018. As of December 31, 2020, the Company has repurchased a total of approximately 8.6 million shares of Class A common stock at an average price per share of $3.76, for an aggregate purchase price of approximately $32.2 million, since inception of the share repurchase program. All such repurchased shares were retired as of December 31, 2020. |
Equity Incentive Plans
Equity Incentive Plans | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity Incentive Plans | 14. EQUITY INCENTIVE PLANS In May 2004, the Company adopted its 2004 Equity Incentive Plan (“2004 Plan”), which replaced its 2000 Omnibus Equity Incentive Plan (“2000 Plan”). The 2000 Plan had allowed for the award of up to 11,500,000 shares of Class A common stock. The 2004 Plan allows for the award of up to 10,000,000 shares of Class A common stock, plus any grants remaining available at its adoption date under the 2000 Plan. Awards under the 2004 Plan may be in the form of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock or restricted stock units. The 2004 Plan is administered by a committee appointed by the Board. This committee determines the type, number, vesting requirements and other features and conditions of such awards. Generally, stock options granted from the 2000 Plan have a contractual term of ten years from the date of the grant and vest over four or five years and stock options granted from the 2004 Plan have a contractual term of ten years from the date of the grant and vest over four years. The 2004 Plan was amended by the Compensation Committee effective July 13, 2006 to (i) eliminate automatic option grants for non-employee directors, making any grants to such directors discretionary by the Compensation Committee and (ii) eliminate the three-year The 2004 Plan was further amended by the Compensation Committee effective May 21, 2014, primarily to extend the end of the term until May 29, 2024. The Company has issued stock options and restricted stock units to various employees and non-employee directors of the Company in addition to non-employee service providers under both the 2004 Plan and the 2000 Plan. As of December 31, 2020, there were approximately 3.7 million securities remaining available for future issuance under equity compensation plans. Stock Options The fair value of each stock option is estimated on the date of grant using the Black-Scholes option pricing model that uses the assumptions noted in the following table. Stock-based compensation expense related to stock options is based on the fair value on the date of grant and is amortized over the vesting period, generally between 1 to 4 years. Expected volatilities are based on historical volatility of the Company’s stock. The Company uses historical data to estimate option exercise and employee termination within the valuation model. The expected term of stock options granted is based on historical contractual life and the vesting data of the stock options. The risk-free rate for periods within the contractual life of the stock option is based on the U.S. Treasury yield curve in effect at the time of grant. There were no stock options granted during the years ended December 31, 2020 and 2019. The following is a summary of stock option activity: (in thousands, except exercise price data and contractual life data): Options Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at December 31, 2017 1,328 $ 2.50 $ 6,175 Exercised (177 ) 2.42 $ 407 Forfeited or cancelled (36 ) 4.40 Outstanding at December 31, 2018 1,115 $ 2.45 $ 970 Exercised (49 ) $ 1.75 $ 70 Forfeited or cancelled (122 ) 4.65 Outstanding at December 31, 2019 944 2.20 $ 627 Exercised (10 ) 1.92 $ 11 Forfeited or cancelled (50 ) 2.87 Outstanding at December 31, 2020 884 $ 2.17 1.78 $ 722 Vested and Exercisable at December 31, 2020 884 $ 2.17 1.78 $ 722 There was no stock-based compensation expense related to the Company’s employee stock option for the year ended December 31, 2020. There was de minimis stock-based compensation expense related to the Company’s employee stock option for the years ended December 31, 2019 and 2018. Restricted Stock and Restricted Stock Units The following is a summary of non-vested restricted stock and restricted stock units activity: (in thousands, except grant date fair value data): Number of Shares Weighted-Average Grant Date Fair Value Nonvested balance at December 31, 2017 1,557 $ 7.18 Granted 1,121 3.20 Vested (798 ) 6.11 Forfeited or cancelled (104 ) 7.28 Nonvested balance at December 31, 2018 1,776 $ 5.08 Granted 1,582 2.74 Vested (1,012 ) 4.58 Forfeited or cancelled (90 ) 4.69 Nonvested balance at December 31, 2019 2,256 $ 3.64 Granted 2,623 2.96 Vested (1,427 ) 3.63 Forfeited or cancelled (81 ) 3.15 Nonvested balance at December 31, 2020 3,371 $ 3.12 Stock-based compensation expense related to grants of restricted stock and restricted stock units was $5.1 million, $4.4 million and $5.8 million for the years ended December 31, 2020, 2019 and 2018, respectively. As of December 31, 2020, there was approximately $5.6 million of total unrecognized compensation expense related to grants of restricted stock and restricted stock units that is expected to be recognized over a weighted-average period of 1.8 years. The fair value of shares vested related to grants of restricted stock and restricted stock units was $5.5 million, $5.0 million, and $5.2 million for the years ended December 31, 2020, 2019 and 2018, respectively. The Company’s restricted stock units are net settled by withholding shares of the Company’s common stock to cover minimum statutory incomes taxes and remitting the remaining shares of the Company’s common stock to an individual’s brokerage account. Authorized shares of the Company’s common stock are used to settle restricted stock units. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | 15. RELATED-PARTY TRANSACTIONS Substantially all of the Company’s television stations are Univision- or UniMás-affiliated television stations. The network affiliation agreement with Univision provides certain of the Company’s 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 Univision- and UniMás-affiliate television stations, and the Company pays certain sales representation fees to Univision relating to sales of all advertising for broadcast on its Univision- and UniMás-affiliate television stations. The Company also generates revenue under two marketing and sales agreements with Univision, which give it 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. At December 31, 2020, Univision owns approximately 11% of the Company’s common stock on a fully-converted basis. The Company’s Class U common stock, all of which is held by Univision, has limited voting rights and does not include the right to elect directors. Each share of Class U common stock is automatically convertible into one share of the Company’s Class A common stock (subject to adjustment for stock splits, dividends or combinations) in connection with any transfer of such shares of Class U common stock to a third party that is not an affiliate of Univision. In addition, 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 of Class U common stock, the Company may not, without the consent of Univision, merge, consolidate or enter into a business combination, dissolve or liquidate the Company or dispose of any interest in any FCC license with respect to television stations which are affiliates of Univision, among other things. On October 2, 2017, the Company entered into a new affiliation agreement which superseded and replaced its prior affiliation agreements with Univision. Additionally, on the same date, the Company entered into a proxy agreement and marketing and sales agreement with Univision, each of which superseded and replaced the prior comparable agreements with Univision. The term of each of these new agreements expires on December 31, 2026 for all of the Company’s Univision and UniMás network affiliate stations, except that each new agreement will expire on December 31, 2021 with respect to the Company’s Univision and UniMás network affiliate stations in Orlando, Tampa and Washington, D.C. 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 MVPDs. During the years ended December 31, 2020 and 2019, retransmission consent revenue accounted for approximately $36.8 million and $35.4 million, respectively, of which $26.8 million and $27.4 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. The following tables reflect the related-party balances with Univision and other related parties (in thousands): Univision Other Total 2020 2019 2020 2019 2020 2019 Trade receivables $ 6,172 $ 4,350 $ — $ — $ 6,172 $ 4,350 Other current assets — — 274 274 274 274 Intangible assets subject to amortization, net (2) 5,869 7,098 — — 5,869 7,098 Accounts payable $ 1,969 $ 2,029 $ 118 $ 118 $ 2,087 $ 2,147 Univision 2020 2019 2018 Direct operating expenses (1) $ 9,063 $ 8,194 $ 9,254 Amortization 1,228 1,229 1,228 (1) Consists primarily of national representation fees paid to Univision. (2) Consists of the Univision affiliation agreement In addition, the Company also had accounts receivable from third parties in connection with a joint sales agreement between the Company and Univision. As of December 31, 2020 and 2019 these balances totaled $4.4 million and $4.4 million, respectively. In May 2007, the Company entered into an affiliation agreement with LATV Networks, LLC (“LATV”). Pursuant to the affiliation agreement, the Company will broadcast programming provided to the Company by LATV on one of the digital multicast channels of certain of the Company’s television stations. Under the affiliation agreement, there are no fees paid for the carriage of programming, and the Company generally retains the right to sell approximately five minutes per hour of available advertising time. Walter F. Ulloa, the Company’s Chairman and Chief Executive Officer, is a director, officer and principal stockholder of LATV. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 16. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Accumulated other comprehensive income (loss) includes foreign currency translation adjustments from those subsidiaries not using the U.S. dollar as their functional currency Foreign Currency Translation Marketable Securities Total Accumulated other comprehensive income (loss) as of January 1, 2018 $ (0.1 ) $ — $ (0.1 ) Other comprehensive income (loss) (0.3 ) (1.3 ) (1.6 ) Income tax (expense) benefit — 0.3 0.3 Other comprehensive income (loss), net of tax (0.3 ) (1.0 ) (1.3 ) Accumulated other comprehensive income (loss) as of December 31, 2018 (0.4 ) (1.0 ) (1.4 ) Other comprehensive income (loss) (0.1 ) 1.9 1.8 Income tax (expense) benefit — (0.5 ) (0.5 ) Other comprehensive income (loss), net of tax (0.1 ) 1.4 1.3 Accumulated other comprehensive income (loss) as of December 31, 2019 (0.5 ) 0.4 (0.1 ) Other comprehensive income (loss) (0.9 ) — (0.9 ) Income tax (expense) benefit — — — Other comprehensive income (loss), net of tax (0.9 ) — (0.9 ) Accumulated other comprehensive income (loss) as of December 31, 2020 $ (1.4 ) $ 0.4 $ (1.0 ) |
Litigation
Litigation | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Litigation | 17. LITIGATION 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. |
Segment Data
Segment Data | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Data | 18. SEGMENT DATA The Company’s management has determined that the Company operates in three reportable segments as of December 31, 2020, 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 54 primary television stations located primarily in California, Colorado, Connecticut, Florida, Kansas, Massachusetts, Nevada, New Mexico, Texas and Washington, D.C. The Company generates revenue from advertising, retransmission consent agreements and the monetization of spectrum usage rights in these markets. Digital The Company operates proprietary technology and data platforms that deliver digital advertising in various advertising formats that allow 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. Radio The Company owns and operates 48 radio stations (38 FM and 10 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. Segment operating profit (loss) is defined as operating profit (loss) before corporate expenses, change in fair value of contingent consideration, impairment charge, other operating (gain) loss, and foreign currency (gain) loss. The Company generated 36%, 18% and 18% and of its revenue outside the United States during the years ended December 31, 2020, 2019 and 2018, respectively. The accounting policies applied to determine the segment information are generally the same as those described in the summary of significant accounting policies (see Note 2). The Company evaluates the performance of its operating segments based on separate financial data for each operating segment as provided below (in thousands): Years Ended December 31, % Change % Change 2020 2019 2018 2020 to 2019 2019 to 2018 Net Revenue Television $ 154,456 $ 149,654 $ 152,911 3 % (2 )% Digital 143,309 68,908 80,982 108 % (15 )% Radio 46,261 55,013 63,922 (16 )% (14 )% Consolidated 344,026 273,575 297,815 26 % (8 )% Cost of revenue - digital 106,928 36,757 45,096 191 % (18 )% Direct operating expenses Television 61,145 61,778 62,434 (1 )% (1 )% Digital 15,227 18,357 21,521 (17 )% (15 )% Radio 28,537 39,277 41,287 (27 )% (5 )% Consolidated 104,909 119,412 125,242 (12 )% (5 )% Selling, general and administrative expenses Television 19,748 22,638 21,864 (13 )% 4 % Digital 15,404 13,904 11,590 11 % 20 % Radio 13,252 17,423 18,081 (24 )% (4 )% Consolidated 48,404 53,965 51,535 (10 )% 5 % Depreciation and amortization Television 12,918 10,059 9,024 28 % 11 % Digital 2,561 4,723 4,759 (46 )% (1 )% Radio 1,803 1,866 2,490 (3 )% (25 )% Consolidated 17,282 16,648 16,273 4 % 2 % Segment operating profit (loss) Television 60,645 55,179 59,589 10 % (7 )% Digital 3,189 (4,833 ) (1,984 ) (166 )% 144 % Radio 2,669 (3,553 ) 2,064 * (272 )% Consolidated 66,503 46,793 59,669 42 % (22 )% Corporate expenses 27,807 28,067 26,865 (1 )% 4 % Change in fair value of contingent consideration — (6,478 ) (1,202 ) (100 )% 439 % Impairment charge 40,035 32,097 — 25 % * Foreign currency (gain) loss (1,052 ) 754 1,616 * (53 )% Other operating (gain) loss (6,895 ) (5,994 ) (1,187 ) 15 % 405 % Operating income (loss) $ 6,608 $ (1,653 ) $ 33,577 * * Capital expenditures Television $ 7,184 $ 24,174 $ 14,336 Digital 1,659 318 1,031 Radio 641 792 350 Consolidated $ 9,484 $ 25,284 $ 15,717 Total assets Television $ 425,899 $ 465,758 $ 487,929 Digital 196,020 51,979 81,460 Radio 125,426 138,463 121,020 Consolidated $ 747,345 $ 656,200 $ 690,409 |
Quarterly Results of Operations
Quarterly Results of Operations | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations | 19. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) The following is a summary of the quarterly results of operations for the years ended December 31, 2020 and 2019 (in thousands, except per share data). The Company believes that the following information reflects all normal recurring adjustments necessary for a fair presentation of the information for the periods presented. The operating results for any quarter are not necessarily indicative of results for any future period. Year ended December 31, 2020: First Quarter Second Quarter Third Quarter Fourth Quarter Total Net revenue $ 64,249 $ 45,116 $ 62,978 $ 171,683 $ 344,026 Net income (loss) attributable to common stockholders (35,592 ) 2,338 9,016 20,328 (3,910 ) Net income (loss) per share attributable to common stockholders, basic and diluted $ (0.42 ) $ 0.03 $ 0.11 $ 0.24 $ (0.05 ) Year ended December 31, 2019: First Quarter Second Quarter Third Quarter Fourth Quarter Total Net revenue $ 64,680 $ 69,241 $ 68,816 $ 70,838 $ 273,575 Net income (loss) attributable to common stockholders 1,424 (16,279 ) (12,217 ) 7,360 (19,712 ) Net income (loss) per share attributable to common stockholders, basic and diluted $ 0.02 $ (0.19 ) $ (0.14 ) $ 0.09 $ (0.23 ) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 20. SUBSEQUENT EVENTS On January 25, 2021, the Company entered into a Fourth Amendment to Lease, effective as of January 14, 2021 (the “Amendment”), to its Office Lease, dated as of August 19, 1999, as amended (the “Lease”), by and between Water Garden Company L.L.C. and the Company, pursuant to which the Company leases space in the building housing the Company’s corporate headquarters in Santa Monica, California . The Amendment provides, in material part, that the Company will relocate its corporate headquarters within the same building to a space consisting of approximately 8,700 square feet, at which point the term of the Lease will be extended for a period of five years, commencing on the earlier to occur of (i) the date we occupy the new premises or (ii) seven days following the completion of build-out of the new premises . All other provisions of the Lease, as amended, remain in full force and effect unless expressly amended or modified by the Amendment. |
Schedule II - Consolidated Valu
Schedule II - Consolidated Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II - Consolidated Valuation and Qualifying Accounts | SCHEDULE II – CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS (In thousands) Description Balance at Beginning of Period Charged / (Credited) to Expense Other Adjustments (1) Deductions Balance at End of Period Allowance for doubtful accounts Year ended December 31, 2020 $ 2,890 $ 2,452 $ (59 ) $ (1,493 ) $ 3,790 Year ended December 31, 2019 $ 3,395 $ 2,314 $ 14 $ (2,833 ) $ 2,890 Year ended December 31, 2018 $ 2,566 $ 1,785 $ 208 $ (1,164 ) $ 3,395 (1) Other adjustments represent recoveries and increases in the allowance for doubtful accounts. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
The Impact of the COVID-19 Pandemic on the Company's Business | The Impact of the COVID-19 Pandemic on the Company’s Business On March 11, 2020, the World Health Organization (the “WHO”) declared COVID-19 a pandemic. On March 13, 2020, a Presidential proclamation was issued declaring a national emergency in the United States as a result of COVID-19. The COVID-19 pandemic has affected the Company’s business and, subject to the extent and duration of the pandemic and the continuing economic crisis that has resulted from the pandemic, is anticipated to continue to affect the Company’s business, from both an operational and financial perspective, in future periods. In the quarter ended December 31, 2020, the global, U.S. and local economies declined at a slower rate than during earlier periods in 2020. With the exception of political advertising during the height of the election cycle, the Company continued to experience significant cancellations of advertising and a significant decrease in new advertising placements in its television segment and especially its radio segment, continuing a trend that the Company had begun to experience since the last half of March 2020, although the Company experienced this decrease at a slower rate as the year progressed. The impact on the Company’s radio segment continues to be significantly greater than that on its television segment because radio audiences declined at a much greater rate, and maintained, as a result of fewer people commuting to work or driving in general as a result of a combination of lockdown, shelter-in-place, stay-at-home or similar orders that were still in effect in various parts of the United States throughout most of 2020, and changes in personal behavior regardless of whether such lockdown, shelter-in-place, stay-at-home or similar orders were in effect in certain parts of the United States from time to time during this period To partially address this situation, the Company has continued to significantly reduce some of its advertising rates, primarily in its radio segment, although the rate of decrease in the Company’s advertising rates was at a slower pace during the quarter ended December 31, 2020 than during earlier periods in 2020 and has been somewhat moderated by political advertising in the Company’s inventory during the election cycle. The Company has also eased credit terms for certain of its advertising clients to help them manage their own cash flow and address other financial needs. Primarily during the quarter ended March 31, 2020 and early in the quarter ended June 30, 2020, the Company engaged in a small number of layoffs and significant number of furloughs of employees as a result of the pandemic. During the quarter ended December 31, 2020 the Company terminated these previously furloughed employees. Severance expense associated with these terminations was not material. The Company will continue to monitor this situation closely and may institute such further layoffs or furloughs at a future date if it thinks such actions are appropriate. The Company has elected to defer the employer portion of the social security payroll tax (6.2%) as outlined within the Coronavirus Aid, Relief and Economic Security Act of 2020, commonly known as the CARES Act. The deferral is effective from March 27, 2020 through December 31, 2020. The deferred amount will be paid in two installments and the amount will be considered timely paid if 50 % of the deferred amount is paid by December 31, 2021 and the remainder by December 31, 2022. In order to preserve cash during this period, the Company instituted certain cost reduction measures. On March 26, 2020, the Company suspended repurchases under its share repurchase program. Effective April 16, 2020, the Company instituted a 2.5%-22.5% reduction in salaries company-wide, depending on the amount of then-current compensation. During the quarter ended December 31, 2020, these reductions were reversed and payments were restored retroactively, resulting in no financial impact on a fiscal year basis. Effective May 16, 2020, the Company suspended company matching of employee contributions to their 401(k) retirement plans. The Company also reduced its dividend by 50% beginning in the second quarter of 2020, and it may do so in future periods. Additionally, effective May 28, 2020, the Board of Directors decreased its annual non-employee director fees by 20% for the Board year ending at the 2021 shareholders meeting. During the quarter ended December 31, 2020, these reductions were reversed and payments were restored retroactively, resulting in no financial impact on a fiscal year basis. The Company will continue to monitor all of these actions closely in light of current and changing conditions and may institute such additional actions as it may feel are appropriate at a future date. The Company believes that its liquidity and capital resources remain adequate and that it can meet current expenses for at least the next twelve months from a combination of cash on hand and cash flows from operations. |
Basis of Consolidation and Presentation | Basis of Consolidation and Presentation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain amounts in the Company’s prior period consolidated financial statements and notes to the financial statements have been reclassified to conform to current period presentation. |
Variable Interest Entities | Variable Interest Entities The Company performs a qualitative analysis to determine if it is the primary beneficiary of a variable interest entity. This analysis includes consideration of who has the power to direct the activities of the entity that most significantly impact the entity’s economic performance and who has the obligation to absorb losses or the right to receive benefits of the variable interest entity that could potentially be significant to the variable interest entity. The Company continuously reassesses whether it is the primary beneficiary of a variable interest entity. The Company has consolidated one entity for which it is the primary beneficiary. Total net assets and results of operations of the entity as of and for the years ended December 31, 2020 and 2019 are not significant. |
Use of Estimates | Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. The Company’s operations are affected by numerous factors, including changes in audience acceptance (i.e. ratings), priorities of advertisers, new laws and governmental regulations and policies and technological advances. The Company cannot predict if any of these factors might have a significant impact on the television, radio, and digital advertising industries in the future, nor can it predict what impact, if any, the occurrence of these or other events might have on the Company’s operations and cash flows. Significant estimates and assumptions made by management are used for, but not limited to, the allowance for doubtful accounts, stock-based compensation, the estimated useful lives of long-lived and intangible assets, the recoverability of such assets by their estimated future undiscounted cash flows, the fair value of reporting units and indefinite life intangible assets, fair values of derivative instruments, disclosure of the fair value of debt, deferred income taxes and the purchase price allocations used in the Company’s acquisitions. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all short-term, highly liquid debt instruments purchased with original maturities of three months or less to be cash equivalents. Cash and cash equivalents consist of funds held in general checking accounts, money market accounts and commercial paper. Cash and cash equivalents are stated at cost plus accrued interest, which approximates fair value. The Company had $34.5 million and $5.3 million in cash and cash equivalents held outside the United States as of December 31, 2020 and 2019, respectively. |
Restricted Cash | Restricted Cash As of December 31, 2020 and 2019, the Company’s balance sheet includes $0.7 |
Investments | Investments The Company made an investment in Cocina Vista, LLC (“Cocina”), a digital media company focused on Spanish and Latin American food and cooking in the United States, Spain and Latin America, beginning in the second quarter of 2017. a worldwide, perpetual, royalty-free license to entire content library. As of December 31, 2020, the Company held investments in a money market fund, certificates of deposit, and corporate bonds. The Company’s available for sale securities totaled $28.0 million and $91.7 million as of December 31, 2020 and 2019, respectively, and are comprised of certificates of deposit and bonds, which were recorded at their fair market value within “Marketable securities” in the consolidated balance sheet” (see Note 10). All certificates of deposit are within the current Federal Deposit Insurance Corporation insurance limits and all corporate bonds are investment grade. |
Long-lived Assets, Other Assets and Intangibles Subject to Amortization | Long-lived Assets, Other Assets and Intangibles Subject to Amortization Property and equipment are recorded at cost. Depreciation and amortization are provided using the straight-line method over their estimated useful lives (see Note 6). The Company periodically evaluates assets to be held and used and long-lived assets held for sale, when events and circumstances warrant such review. Syndication contracts are recorded at cost. Syndication amortization is provided using the straight-line method over their estimated useful lives. Intangible assets subject to amortization are amortized on a straight-line method over their estimated useful lives (see Note 5). Favorable leasehold interests and pre-sold advertising contracts are amortized over the term of the underlying contracts. Deferred debt issuance costs are amortized over the life of the related indebtedness using the effective interest method. Changes in circumstances, such as the passage of new laws or changes in regulations, technological advances or changes to the Company’s business strategy, could result in the actual useful lives differing from initial estimates. Factors such as changes in the planned use of equipment, customer attrition, contractual amendments or mandated regulatory requirements could result in shortened useful lives. In those cases where the Company determines that the useful life of a long-lived asset should be revised, the Company will amortize or depreciate the net book value in excess of the estimated residual value over its revised remaining useful life. Long-lived assets and asset groups are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The estimated future cash flows are based upon, among other things, assumptions about expected future operating performance, and may differ from actual cash flows. Long-lived assets evaluated for impairment are grouped with other assets to the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. If the sum of the projected undiscounted cash flows (excluding interest) is less than the carrying value of the assets, the assets will be written down to the estimated fair value in the period in which the determination is made. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination. The Company tests its goodwill and other indefinite-lived intangible assets for impairment annually on the first day of its fourth fiscal quarter, or more frequently if certain events or certain changes in circumstances indicate they may be impaired. In assessing the recoverability of goodwill and indefinite life intangible assets, the Company must make a series of assumptions about such things as the estimated future cash flows and other factors to determine the fair value of these assets. In testing the goodwill of its reporting units for impairment, the Company first determines, based on a qualitative assessment, whether it is more likely than not that the fair value of each of its reporting units is less than their respective carrying amounts. The Company has determined that each of its operating segments is a reporting unit. If it is deemed more likely than not that the fair value of a reporting unit is less than the carrying value based on this initial assessment, the next step is a quantitative comparison of the fair value of the reporting unit to its carrying amount. If a reporting unit’s estimated fair value is equal to or greater than that reporting unit’s carrying value, no impairment of goodwill exists and the testing is complete. If the reporting unit’s carrying amount is greater than the estimated fair value, then an impairment loss is recorded for the amount of the difference. When a quantitative analysis is performed, the estimated fair value of goodwill is determined by using a combination of a market approach and an income approach. The market approach estimates fair value by applying sales, earnings and cash flow multiples to each reporting unit’s operating performance. The multiples are derived from comparable publicly-traded companies with similar operating and investment characteristics to the Company’s reporting units. The market approach requires the Company to make a series of assumptions, such as selecting comparable companies and comparable transactions and transaction premiums. In recent years, there has been a decrease in the number of comparable transactions, which makes the market approach of comparable transactions and transaction premiums more difficult to estimate than in previous years. The income approach estimates fair value based on the Company’s estimated future cash flows of each reporting unit, discounted by an estimated weighted-average cost of capital that reflects current market conditions, which reflect the overall level of inherent risk of that reporting unit. The income approach also requires the Company to make a series of assumptions, such as discount rates, revenue projections, profit margin projections and terminal value multiples. The Company estimated discount rates on a blended rate of return considering both debt and equity for comparable publicly-traded companies in the television, radio and digital media industries. These comparable publicly-traded companies have similar size, operating characteristics and/or financial profiles to the Company. The Company also estimated the terminal value multiple based on comparable publicly-traded companies. The Company estimated revenue projections and profit margin projections based on internal forecasts about future performance. |
Indefinite Life Intangible Assets | Indefinite Life Intangible Assets The Company believes that its broadcast licenses are indefinite life intangible assets. An intangible asset is determined to have an indefinite useful life when there are no legal, regulatory, contractual, competitive, economic or any other factors that may limit the period over which the asset is expected to contribute directly or indirectly to future cash flows. The evaluation of impairment for indefinite life intangible assets is performed by a comparison of the asset’s carrying value to the asset’s fair value. When the carrying value exceeds fair value, an impairment charge is recorded for the amount of the difference. The unit of accounting used to test broadcast licenses represents all licenses owned and operated within an individual market cluster, because such licenses are used together, are complimentary to each other and are representative of the best use of those assets. The Company’s individual market clusters consist of cities or nearby cities. The Company tests its broadcasting licenses for impairment based on certain assumptions about these market clusters. The estimated fair value of indefinite life intangible assets is determined by using an income approach. The income approach estimates fair value based on the estimated future cash flows of each market cluster that a hypothetical buyer would expect to generate, discounted by an estimated weighted-average cost of capital that reflects current market conditions, which reflect the overall level of inherent risk. The income approach requires the Company to make a series of assumptions, such as discount rates, revenue projections, profit margin projections and terminal value multiples. The Company estimates the discount rates on a blended rate of return considering both debt and equity for comparable publicly-traded companies. These comparable publicly-traded companies have similar size, operating characteristics and/or financial profiles to the Company. The Company also estimated the terminal value multiple based on comparable publicly-traded companies in the television, radio and digital media industries. The Company estimated the revenue projections and profit margin projections based on various market clusters signal coverage of the markets and industry information for an average station within a given market. The information for each market cluster includes such things as estimated market share, estimated capital start-up costs, population, household income, retail sales and other expenditures that would influence advertising expenditures. Alternatively, some stations under evaluation have had limited relevant cash flow history due to planned or actual conversion of format or upgrade of station signal. The assumptions the Company makes about cash flows after conversion are based on the performance of similar stations in similar markets and potential proceeds from the sale of the assets. |
Concentrations of Credit Risk and Trade Receivables | Concentrations of Credit Risk and Trade Receivables The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents and trade accounts receivable. The Company from time to time may have bank deposits in excess of the FDIC insurance limits. As of December 31, 2020, substantially all deposits are maintained in one financial institution. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents. The Company routinely assesses the financial strength of its customers and, as a consequence, believes that its trade receivable credit risk exposure is limited. Trade receivables are carried at original invoice amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis. A valuation allowance is provided for known and anticipated credit losses, as determined by management in the course of regularly evaluating individual customer receivables. This evaluation takes into consideration of a customer’s financial condition and credit history, as well as current economic conditions. Trade receivables are written off when deemed uncollectible. Recoveries of trade receivables previously written off are recorded when received. No interest is charged on customer accounts. Estimated losses for bad debts are provided for in the consolidated financial statements through a charge to expense that aggregated $2.5 million, $2.3 million and $1.8 million for the years ended December 31, 2020, 2019 and 2018, respectively. The net charge off of bad debts aggregated $1.5 million, $2.8 million and $1.2 million for the years ended December 31, 2020, 2019 and 2018, respectively. |
Dependence on Business Partners | Dependence on Business Partners The Company is dependent on the continued financial and business strength of its business partners, such as the companies from whom it obtains programming. The Company could be at risk should any of these entities fail to perform their respective obligations to the Company. This in turn could materially adversely affect the Company’s own business, results of operations and financial condition. |
Disclosures About Fair Value of Financial Instruments | Disclosures About Fair Value of Financial Instruments The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: The carrying amount of cash and cash equivalents approximates fair value because of the short maturity of those instruments. As of December 31, 2020 and 2019, the fair value of the Company’s long-term debt was approximately $210.5 million and $211.7 million, respectively, based on quoted prices in markets where trading occurs infrequently. The Company’s available for sale securities are valued using quoted prices for similar attributes in active markets. Since these investments are classified as available for sale, they are recorded at their fair market value within “Marketable securities” in the consolidated balance sheets and their unrealized gains or losses are included in “Accumulated other comprehensive income (loss)”. The carrying values of receivables, payables and accrued expenses approximate fair value due to the short maturity of these instruments. |
Off-Balance Sheet Financings and Liabilities | Off-Balance Sheet Financings and Liabilities Other than lease commitments, legal contingencies incurred in the normal course of business and employment contracts for key employees (see Notes 7, 12 and 17), the Company does not have any off-balance sheet financing arrangements or liabilities. The Company does not have any majority-owned subsidiaries or any interests in, or relationships with, any material variable-interest entities that are not included in the consolidated financial statements. |
Income Taxes | Income Taxes Deferred income taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when it is determined to be more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. In evaluating the Company’s ability to realize net deferred tax assets, the Company considers all reasonably available evidence including past operating results, tax strategies and forecasts of future taxable income. In considering these factors, the Company makes certain assumptions and judgments that are based on the plans and estimates used to manage the business. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. |
Value Added Taxes | Value Added Taxes Value added taxes collected from customers and remitted to governmental authorities are accounted for on a net basis, and are therefore excluded from revenues. |
Advertising Costs | Advertising Costs Amounts incurred for advertising costs with third parties are expensed as incurred. Advertising expense totaled approximately $0.1 million, $0.5 million and $0.1 million for the years ended December 31, 2020, 2019 and 2018, respectively. |
Legal Costs | Legal Costs Amounts incurred for legal costs that pertain to loss contingencies are expensed as incurred. |
Repairs and Maintenance | Repairs and Maintenance All costs associated with repairs and maintenance are expensed as incurred. |
Business Combinations | Business Combinations The Company applies the acquisition method of accounting for business combinations in accordance with GAAP and use estimates and judgments to allocate the purchase price paid for acquisitions to the fair value of the assets, including identifiable intangible assets and liabilities acquired. Such estimates may be based on significant unobservable inputs and assumptions such as, but not limited to, revenue projections, gross margin projections, customer attrition rates, royalty rates, discount rates and terminal growth rate assumptions. The Company uses established valuation techniques and may engage reputable valuation specialists to assist with the valuations. The Company’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. Fair values are subject to refinement for up to one year after the closing date of an acquisition, as information relative to closing date fair values becomes available. Upon the conclusion of the measurement period, any subsequent adjustments are recorded to earnings. |
Revenue Recognition | Revenue Recognition Television and radio revenue related to the sale of advertising is recognized at the time of broadcast. Revenue for contracts with advertising agencies is recorded at an amount that is net of the commission retained by the agency. Revenue from contracts directly with the advertisers is recorded as gross revenue and the related commission or national representation fee is recorded in operating expense. 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. Digital related revenue is recognized when display or other digital advertisements record impressions on the websites of the Company’s third party publishers or as the advertiser’s previously agreed-upon performance criteria are satisfied. The Company generates revenue under arrangements in which services are sold on a stand-alone basis within a specific segment, and those that are sold on a combined basis across multiple segments. The Company has determined that in such revenue arrangements which contain multiple products and services, revenues are allocated based on the relative fair value of each item and recognized in accordance with the applicable revenue recognition criteria for the specific unit of accounting. Under the Company’s current 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, or MVPDs. 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. The Company recognizes retransmission consent revenue earned as the television signal is delivered to the MVPD. The Company also generates revenue under two current marketing and sales agreements with Univision, which give 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. The Company also generates revenue from agreements associated with its television stations’ spectrum usage rights from a variety of sources, including but not limited to entering into 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 from such agreements is recognized over the period of the lease or when the Company has relinquished all or a portion of its spectrum usage rights for a station or have relinquished its rights to operate a station on the existing channel free from interference. |
Trade Transactions | Trade Transactions The Company exchanges broadcast time for certain merchandise and services. Trade revenue is recognized when commercials air at the fair value of the goods or services received or the fair value of time aired, whichever is more readily determinable. Trade expense is recorded when the goods or services are used or received. Trade revenue was approximately $0.2 million, $0.5 million and $0.7 million for each of the years ended December 31, 2020, 2019 and 2018, respectively. Trade costs were approximately $0.2 million, $0.5 million and $0.7 million for each of the years ended December 31, 2020, 2019 and 2018, respectively. |
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. |
Direct Operating Expenses | Direct operating expenses Direct operating expenses consist primarily of salaries and commissions of sales staff, amounts paid to national representation firms, production and programming expenses, fees for ratings services, and engineering costs. |
Corporate Expenses | Corporate expenses Corporate expenses consist primarily of salaries related to corporate officers and back office functions, third party legal and accounting services, and fees incurred as a result of being a publicly traded company. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes stock-based compensation according to the provisions of ASC 718, “Stock Compensation”, which requires the measurement and recognition of compensation expense for all stock-based awards made to employees and directors including employee stock options, restricted stock awards, and restricted stock units based on estimated fair values. ASC 718 requires companies to estimate the fair value of stock options on the date of grant using an option pricing model. The fair value of restricted stock awards and restricted stock units is based on the closing market price of the Company’s common stock on the date of grant. The value of the portion of the award that is ultimately expected to vest has been reduced for estimated forfeitures and is recognized as expense over the requisite service periods in the consolidated statements of operations. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company has selected the Black-Scholes option pricing model as the most appropriate method for determining the estimated fair value for stock options. The Black-Scholes option pricing model requires the use of highly subjective and complex assumptions which determine the fair value of stock-based awards, including the option’s expected term, expected volatility of the underlying stock, risk-free rate, and expected dividends. The expected volatility is based on historical volatility of the Company’s common stock and other relevant factors. The expected term assumptions are based on the Company’s historical experience and on the terms and conditions of the stock-based awards. The risk free-rate is based on observed interest rates appropriate for the expected terms of the Company’s stock options. The dividend rate is based on the Company’s dividend policy. The Company classifies cash flows from excess tax benefits from exercised options in excess of the deferred tax asset attributable to stock-based compensation costs as operating cash flows. |
Earnings Per Share | Earnings Per Share The following table illustrates the reconciliation of the basic and diluted per share computations (in thousands, except share and per share data): Year Ended Year Ended Year Ended December 31, December 31, December 31, 2020 2019 2018 Basic earnings per share: Numerator: Net income (loss) attributable to common stockholders $ (3,910 ) $ (19,712 ) $ 12,161 Denominator: Weighted average common shares outstanding, basic 84,231,212 85,107,301 89,115,997 Per share: Net income (loss) per share attributable to common stockholders $ (0.05 ) $ (0.23 ) $ 0.14 Diluted earnings per share: Numerator: Net income (loss) attributable to common stockholders $ (3,910 ) $ (19,712 ) $ 12,161 Denominator: Weighted average common shares outstanding 84,231,212 85,107,301 89,115,997 Dilutive securities: Stock options - - 629,933 Restricted stock units - - 582,653 Diluted shares outstanding 84,231,212 85,107,301 90,328,583 Per share: Net income (loss) per share attributable to common stockholders $ (0.05 ) $ (0.23 ) $ 0.13 Basic earnings per share is computed as net income divided by the weighted average number of shares outstanding for the period. Diluted earnings per share reflects the potential dilution, if any, that could occur from shares issuable through stock options and restricted stock awards. For the year ended December 31, 2020, 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 892,720. For the year ended December 31, 2019, 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 1,117,216. For the year ended December 31, 2018, a total of 182,847 shares of dilutive securities were not included in the computation of diluted earnings per share because the exercise prices of the dilutive securities were greater than the average market price of the common shares. |
Comprehensive Income (loss) | Comprehensive Income (loss) For the year ended December 31, 2020 the Company had other comprehensive loss, net of tax, of $0.9 million. For the year ended December 31, 2019 the Company had other comprehensive income, net of tax, of $1.3 million. For the year ended December 31, 2018 the Company had other comprehensive loss, net of tax of $ 1.3 |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, also amends other aspects of the guidance to help simplify and promote consistent application of GAAP. ASU 2019-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Newly Adopted Accounting Standards 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 August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement modifies the disclosure requirements on fair value measurements by requiring that Level 3 fair value disclosures include the range and weighted average of significant unobservable inputs used to develop those fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. which did not have an impact on the Company’s financial In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326) Account Receivables The Company adopted ASU 2016-13 on January 1, 2020 using the modified retrospective approach. Adoption of the new standard did not have a material impact on the Company’s consolidated financial statements. The allowance for doubtful accounts is based on the Company’s assessment of the collectibility of customer accounts. The Company periodically reviews the allowance by considering factors such as historical experience, credit quality, the age of the accounts receivable balances, and current economic conditions that may affect a customer’s ability to pay. The Company's exposure to credit losses may increase if its customers are adversely affected by changes such as economic pressures or uncertainty associated with local or global economic recessions, disruptions associated with the COVID-19 pandemic, or other customer-specific factors. Although the Company has historically not experienced significant credit losses, it will continue to periodically review the allowance and make necessary adjustments accordingly. Available for Sale Debt Securities ASU 2016-13 made changes to the accounting for available for sale debt securities. Under the new guidance, at each reporting date, entities must evaluate their individual available for sale debt securities that are in an unrealized loss position and determine whether the decline in fair value below the amortized cost basis results from a credit loss or other factors. The amount of the decline related to credit losses are recorded as a credit loss expense in earnings with a corresponding allowance for credit losses, and the amount of the decline not related to credit losses are recorded through other comprehensive income, net of tax. As of the adoption date on January 1, 2020, the Company applied the new credit impairment guidance for available for sale debt securities on a prospective basis. Adoption of the new standard did not have a material impact on our consolidated financial statements. Refer to “Fair Value Measurements” discussion above. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Reconciliation of Basic and Diluted Income (Loss) Per Share | The following table illustrates the reconciliation of the basic and diluted per share computations (in thousands, except share and per share data): Year Ended Year Ended Year Ended December 31, December 31, December 31, 2020 2019 2018 Basic earnings per share: Numerator: Net income (loss) attributable to common stockholders $ (3,910 ) $ (19,712 ) $ 12,161 Denominator: Weighted average common shares outstanding, basic 84,231,212 85,107,301 89,115,997 Per share: Net income (loss) per share attributable to common stockholders $ (0.05 ) $ (0.23 ) $ 0.14 Diluted earnings per share: Numerator: Net income (loss) attributable to common stockholders $ (3,910 ) $ (19,712 ) $ 12,161 Denominator: Weighted average common shares outstanding 84,231,212 85,107,301 89,115,997 Dilutive securities: Stock options - - 629,933 Restricted stock units - - 582,653 Diluted shares outstanding 84,231,212 85,107,301 90,328,583 Per share: Net income (loss) per share attributable to common stockholders $ (0.05 ) $ (0.23 ) $ 0.13 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cisneros Interactive | |
Reconciliation of Changes in Redeemable Noncontrolling Interests | The table below presents the reconciliation of changes in redeemable noncontrolling interests (in thousands): Years Ended December 31, 2020 2019 2018 Beginning balance $ - $ - $ - Initial fair value of redeemable noncontrolling interests 30,762 - - Net income (loss) attributable to redeemable noncontrolling interest 2,523 - - Ending balance $ 33,285 $ - $ - |
Summary of Purchase Price Allocation | The following is a summary of the purchase price allocation (in millions): Cash $ 8.7 Accounts receivable 50.5 Other assets 6.2 Intangible assets subject to amortization 41.7 Goodwill 12.3 Current liabilities (48.1 ) Deferred tax (10.6 ) Redeemable noncontrolling interest (30.8 ) |
Summary of Intangible Assets Subject to Amortization Acquired | Intangibles assets subject to amortization acquired includes: Intangible Asset Estimated Fair Value (in millions) Weighted average life (in years) Publisher relationships $ 34.4 10.0 Advertiser relationships 5.2 4.0 Trade name 1.7 2.5 Non-Compete agreements 0.4 4.0 |
Schedule of Unaudited Pro Forma Information | The following unaudited pro forma information for the years ended December 31, 2020 and 2019 has been prepared to give effect to the acquisition of a majority interest in Cisneros Interactive as if the acquisition had occurred on January 1, 2019. This pro forma information was adjusted to exclude acquisition fees and costs of $0.9 million for the year ended December 31, 2020, which were expensed in connection with the acquisition. This pro forma information does not purport to represent what the actual results of operations of the Company would have been had this acquisition occurred on such date, nor does it purport to predict the results of operations for any future periods. Years Ended Ended December 31, 2020 2019 Pro Forma: Total revenue $ 488,137 $ 432,966 Net income (loss) 5,257 (11,403 ) Net income (loss) attributable to redeemable noncontrolling interest (5,343 ) (4,071 ) Net income (loss) attributable to common stockholders $ (86 ) $ (15,474 ) Basic and diluted earnings per share: Net income (loss) per share, attributable to common stockholders, basic and diluted $ 0.00 $ (0.18 ) Weighted average common shares outstanding, basic and diluted 84,231,212 85,107,301 |
Smadex | |
Summary of Purchase Price Allocation | The following is a summary of the final purchase price allocation for the Company’s acquisition of Smadex (in millions): Accounts receivable $ 0.9 Other current assets 0.4 Intangible assets subject to amortization 2.0 Goodwill 3.6 Current liabilities (2.8 ) Long-term liabilities (0.2 ) Deferred tax (0.4 ) |
Schedule of Unaudited Pro Forma Information | The following unaudited pro forma information for the years ended December 31, 2018 and 2017 has been prepared to give effect to the acquisition of Smadex as if the acquisition had occurred on January 1, 2017. This pro-forma information does not purport to represent what the actual results of operations of the Company would have been had this acquisition occurred on such date, nor does it purport to predict the results of operations for future periods. Years Ended December 31, 2018 Pro Forma: Total revenue $ 307,805 Net income (loss) $ 13,133 Basic and diluted earnings per share: Net income per share, basic $ 0.15 Net income per share, diluted $ 0.15 Weighted average common shares outstanding, basic 89,115,997 Weighted average common shares outstanding, diluted 90,328,583 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Disaggregation of Revenue by Major Source and by Sales Channel | The following table presents our revenues disaggregated by major source (in thousands): Years Ended December 31, 2020 2019 2018 Broadcast advertising $ 152,677 $ 148,082 $ 169,009 Digital advertising 143,309 68,908 80,982 Spectrum usage rights 5,429 13,061 2,976 Retransmission consent 36,766 35,362 35,066 Other 5,845 8,162 9,782 Total revenue $ 344,026 $ 273,575 $ 297,815 Years Ended December 31, 2020 2019 2018 Local direct $ 21,334 $ 25,972 $ 27,522 Local agency 48,702 58,425 61,226 National agency 82,641 63,685 80,261 Total revenue $ 152,677 $ 148,082 $ 169,009 |
Summary of Deferred Revenue | (in thousands) December 31, 2019 Increase Decrease * December 31, 2020 Deferred revenue $ 2,390 3,127 (2,390 ) $ 3,127 * The amount disclosed in the decrease column reflects revenue that has been recorded during the year ended December 31, 2020. (in thousands) December 31, 2018 Increase Decrease * December 31, 2019 Deferred revenue $ 2,759 2,390 (2,759 ) $ 2,390 * The amount disclosed in the decrease column reflects revenue that has been recorded during the year ended December 31, 2019. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Carrying Amount of Goodwill | The carrying amount of goodwill for each of the Company’s operating segments for the years ended December 31, 2020 and 2019 is as follows (in thousands): December 31, December 31, December 31, 2018 Acquisition Currency Impairment 2019 Acquisition Impairment 2020 Television $ 40,549 — — — $ 40,549 — — $ 40,549 Digital 33,743 — (67 ) (27,714 ) 5,962 12,332 (800 ) 17,494 Radio — — — — — — — — Consolidated $ 74,292 $ — $ (67 ) $ (27,714 ) $ 46,511 $ 12,332 $ (800 ) $ 58,043 |
Composition of Company's Acquired Intangible Assets and Associated Accumulated Amortization | The composition of the Company’s acquired intangible assets and the associated accumulated amortization as of December 31, 2020 and 2019 is as follows (in thousands): 2020 2019 Weighted average remaining life in years Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Television network affiliation agreements 7 $ 67,488 $ 59,726 $ 7,762 $ 67,489 $ 58,338 $ 9,151 Customer base 4 47,052 7,874 39,178 10,045 6,414 3,631 Pre-sold advertising contracts and other 5 38,624 36,152 2,472 39,057 35,067 3,990 Total assets subject to amortization: $ 153,164 $ 103,752 $ 49,412 $ 116,591 $ 99,819 $ 16,772 Intangible assets not subject to amortization: FCC licenses and spectrum usage rights 216,653 252,544 Total intangible assets $ 266,065 $ 269,316 |
Estimated Amortization Expense | Estimated amortization expense for the next five years and thereafter is as follows (in thousands): Estimated Amortization Expense Amount 2021 $ 5,874 2022 5,419 2023 5,229 2024 4,339 2025 3,255 Thereafter 25,296 Total $ 49,412 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Property and equipment as of December 31, 2020 and 2019 consists of (in millions): Estimated useful life (years) 2020 2019 Buildings 40 $ 19.7 $ 21.9 Construction in progress — 1.9 15.1 Transmission, studio and other broadcast equipment 5-15 170.3 162.1 Office and computer equipment 3-7 33.9 31.4 Transportation equipment 5 6.8 6.3 Leasehold improvements and land improvements Lesser of lease life or useful life 22.0 22.1 254.6 258.9 Less accumulated depreciation 191.2 188.6 63.4 70.3 Land 8.6 9.3 $ 72.0 $ 79.6 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 December 31, 2020: (in thousands) 2021 $ 9,421 2022 8,231 2023 6,560 2024 5,587 2025 5,245 2026 and thereafter 15,629 Total minimum payments $ 50,673 Less amounts representing interest (11,608 ) Present value of minimum lease payments 39,065 Less current operating lease liabilities (7,290 ) Long-term operating lease liabilities $ 31,775 |
Summary of Lease Payments and Supplemental Non-Cash Disclosures | The following table summarizes lease payments and supplemental non-cash disclosures: Years Ended December 31, (in thousands) 2020 2019 Cash paid for amounts included in lease liabilities: Operating cash flows from operating leases $ 12,049 $ 10,582 Non-cash additions to operating lease assets $ 2,593 $ 4,797 |
Summary of Components of Lease Expense | The following table summarizes the components of lease expense: Years Ended December 31, (in thousands) 2020 2019 Operating lease cost $ 9,891 $ 10,232 Variable lease cost 672 1,978 Short-term lease cost 848 668 Total lease cost $ 11,411 $ 12,878 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses as of December 31, 2020 and 2019 consist of (in millions): 2020 2019 Accounts payable $ 49.7 $ 11.5 Accrued payroll and compensated absences 7.4 4.5 Accrued bonuses 4.0 4.3 Professional fees 1.3 0.3 Deferred revenue 3.1 2.4 Accrued national representation fees 1.6 1.0 Income taxes payable 3.4 8.5 Other taxes payable 10.4 2.1 Amounts due under joint sales agreements 1.2 1.3 Accrued property taxes 1.8 1.5 Accrued capital expenditures 1.2 0.7 Accrued media costs – digital 36.2 9.9 Other 5.5 5.9 $ 126.8 $ 53.9 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term debt as of December 31, 2020 and 2019 is summarized as follows (in millions): 2020 2019 Term Loan $ 215.3 $ 218.2 Less current maturities 3.0 3.0 212.3 215.2 Less unamortized debt issuance costs 1.8 2.2 $ 210.5 $ 213.0 |
Scheduled Maturities of Long-Term Debt | The scheduled maturities of long-term debt as of December 31, 2020 are as follows (in millions): Year Amount 2021 $ 3.0 2022 3.0 2023 3.0 2024 206.3 2025 - Thereafter - $ 215.3 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
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): December 31, 2020 Total Fair Value and Carrying Value on Balance Sheet Fair Value Measurement Category Level 1 Level 2 Level 3 Assets: Money market account $ 59.9 $ — $ 59.9 $ — Certificate of deposit $ 2.8 $ — $ 2.8 $ — Corporate bonds $ 25.2 $ — $ 25.2 $ — December 31, 2019 Total Fair Value and Carrying Value on Balance Sheet Fair Value Measurement Category Level 1 Level 2 Level 3 Assets: Money market account $ 21.3 $ — $ 21.3 $ — Certificate of deposit $ 6.1 $ — $ 6.1 $ — Corporate bonds $ 85.6 $ — $ 85.6 $ — |
Summary of Amortized Cost and Unrealized (Gains) Losses of Available for Sale Securities | As of December 31, 2020, 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 $ 2,796 $ 18 $ 24,941 $ 233 Due after one year through five years - - - - Total $ 2,796 $ 18 $ 24,941 $ 233 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income (Loss) before Provision for Income Taxes | The components of income (loss) before provision for income taxes for the years ended December 31, 2020, 2019 and 2018 (in millions): 2020 2019 2018 Domestic $ 2.0 $ (0.4 ) $ 23.5 Foreign (1.9 ) (10.9 ) (2.1 ) Income (loss) before provision for income taxes $ 0.1 $ (11.3 ) $ 21.4 |
Provision (Benefit) for Income Taxes | The provision (benefit) for income taxes from continuing operations for the years ended December 31, 2020, 2019 and 2018 (in millions): 2020 2019 2018 Current Federal $ 1.2 $ (0.1 ) $ 0.2 State (1.2 ) 9.4 0.5 Foreign 1.5 1.9 1.5 $ 1.5 $ 11.2 $ 2.2 Deferred Federal $ 0.8 $ 2.9 $ 5.0 State (1.0 ) (4.0 ) 2.2 Foreign 0.2 (1.9 ) (1.5 ) - (3.0 ) 5.7 Total provision for taxes $ 1.5 $ 8.2 $ 7.9 |
Schedule of Effective Income Tax Rate | The income tax provision (benefit) differs from the amount of income tax determined by applying the Company’s federal corporate income tax rate of 21% to pre-tax income for the years ended December 31, 2020, 2019 and 2018 due to the following (in millions): 2020 2019 2018 Computed “expected” tax provision (benefit) $ - $ (2.4 ) $ 4.5 Change in income tax resulting from: State taxes, net of federal benefit 0.7 1.0 1.5 Change in fair value of earnout - (1.6 ) 0.4 Non-deductible executive compensation 0.4 0.3 0.3 Non-deductible expenses 0.2 0.3 0.3 Foreign income 0.1 0.2 - State tax impact of previously deferred gain from FCC auction for broadcast spectrum (2.5 ) 2.7 - Transaction costs 0.1 - 0.1 Change in valuation allowance 1.7 - - Change in state tax rate 0.5 0.4 0.5 Stock compensation 0.2 0.4 0.5 Change in unrecognized tax benefits 0.1 0.7 (0.3 ) Impairment 0.2 6.3 - Other (0.2 ) (0.1 ) 0.1 $ 1.5 $ 8.2 $ 7.9 |
Components of Deferred Tax Assets and Liabilities | The components of the deferred tax assets and liabilities at December 31, 2020 and 2019 consist of the following (in millions): 2020 2019 Deferred tax assets: Accrued expenses $ 1.9 $ 0.7 Accounts receivable 1.0 0.6 Net operating loss carryforward 16.4 20.5 Stock-based compensation 1.1 1.2 Credits 0.1 0.1 Lease obligations 10.1 12.6 Other comprehensive income 0.4 — Other 0.6 0.6 Total deferred tax assets 31.6 36.3 Valuation allowance (1.7 ) - Net deferred tax assets $ 29.9 $ 36.3 Deferred tax liabilities: Intangible assets $ (69.1 ) $ (65.7 ) Property and equipment (7.2 ) (4.0 ) Lease assets (8.4 ) (10.9 ) Other (0.2 ) — Total deferred tax liabilities (84.9 ) (80.6 ) Net deferred tax liabilities $ (55.0 ) $ (44.3 ) |
Unrecognized Tax Benefits | The following table summarizes the activity related to the Company’s unrecognized tax benefits (in millions): Amount Balance at December 31, 2018 $ 6.0 Increase in balances related to prior year tax positions 0.7 Balance at December 31, 2019 $ 6.7 Lapse of statute (0.4 ) Interest accrued 0.1 Decrease in balances related to prior year tax positions (2.1 ) Balance at December 31, 2020 $ 4.3 |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity | The following is a summary of stock option activity: (in thousands, except exercise price data and contractual life data): Options Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at December 31, 2017 1,328 $ 2.50 $ 6,175 Exercised (177 ) 2.42 $ 407 Forfeited or cancelled (36 ) 4.40 Outstanding at December 31, 2018 1,115 $ 2.45 $ 970 Exercised (49 ) $ 1.75 $ 70 Forfeited or cancelled (122 ) 4.65 Outstanding at December 31, 2019 944 2.20 $ 627 Exercised (10 ) 1.92 $ 11 Forfeited or cancelled (50 ) 2.87 Outstanding at December 31, 2020 884 $ 2.17 1.78 $ 722 Vested and Exercisable at December 31, 2020 884 $ 2.17 1.78 $ 722 |
Summary of Nonvested Restricted Stock and Restricted Stock Units Activity | The following is a summary of non-vested restricted stock and restricted stock units activity: (in thousands, except grant date fair value data): Number of Shares Weighted-Average Grant Date Fair Value Nonvested balance at December 31, 2017 1,557 $ 7.18 Granted 1,121 3.20 Vested (798 ) 6.11 Forfeited or cancelled (104 ) 7.28 Nonvested balance at December 31, 2018 1,776 $ 5.08 Granted 1,582 2.74 Vested (1,012 ) 4.58 Forfeited or cancelled (90 ) 4.69 Nonvested balance at December 31, 2019 2,256 $ 3.64 Granted 2,623 2.96 Vested (1,427 ) 3.63 Forfeited or cancelled (81 ) 3.15 Nonvested balance at December 31, 2020 3,371 $ 3.12 |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Summary of Related-Party Balances with Univision and Other Related Parties | The following tables reflect the related-party balances with Univision and other related parties (in thousands): Univision Other Total 2020 2019 2020 2019 2020 2019 Trade receivables $ 6,172 $ 4,350 $ — $ — $ 6,172 $ 4,350 Other current assets — — 274 274 274 274 Intangible assets subject to amortization, net (2) 5,869 7,098 — — 5,869 7,098 Accounts payable $ 1,969 $ 2,029 $ 118 $ 118 $ 2,087 $ 2,147 Univision 2020 2019 2018 Direct operating expenses (1) $ 9,063 $ 8,194 $ 9,254 Amortization 1,228 1,229 1,228 (1) Consists primarily of national representation fees paid to Univision. (2) Consists of the Univision affiliation agreement |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Summary of Components of AOCI | Accumulated other comprehensive income (loss) includes foreign currency translation adjustments from those subsidiaries not using the U.S. dollar as their functional currency Foreign Currency Translation Marketable Securities Total Accumulated other comprehensive income (loss) as of January 1, 2018 $ (0.1 ) $ — $ (0.1 ) Other comprehensive income (loss) (0.3 ) (1.3 ) (1.6 ) Income tax (expense) benefit — 0.3 0.3 Other comprehensive income (loss), net of tax (0.3 ) (1.0 ) (1.3 ) Accumulated other comprehensive income (loss) as of December 31, 2018 (0.4 ) (1.0 ) (1.4 ) Other comprehensive income (loss) (0.1 ) 1.9 1.8 Income tax (expense) benefit — (0.5 ) (0.5 ) Other comprehensive income (loss), net of tax (0.1 ) 1.4 1.3 Accumulated other comprehensive income (loss) as of December 31, 2019 (0.5 ) 0.4 (0.1 ) Other comprehensive income (loss) (0.9 ) — (0.9 ) Income tax (expense) benefit — — — Other comprehensive income (loss), net of tax (0.9 ) — (0.9 ) Accumulated other comprehensive income (loss) as of December 31, 2020 $ (1.4 ) $ 0.4 $ (1.0 ) |
Segment Data (Tables)
Segment Data (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Separate Financial Data for Each of Company's Operating Segment | The accounting policies applied to determine the segment information are generally the same as those described in the summary of significant accounting policies (see Note 2). The Company evaluates the performance of its operating segments based on separate financial data for each operating segment as provided below (in thousands): Years Ended December 31, % Change % Change 2020 2019 2018 2020 to 2019 2019 to 2018 Net Revenue Television $ 154,456 $ 149,654 $ 152,911 3 % (2 )% Digital 143,309 68,908 80,982 108 % (15 )% Radio 46,261 55,013 63,922 (16 )% (14 )% Consolidated 344,026 273,575 297,815 26 % (8 )% Cost of revenue - digital 106,928 36,757 45,096 191 % (18 )% Direct operating expenses Television 61,145 61,778 62,434 (1 )% (1 )% Digital 15,227 18,357 21,521 (17 )% (15 )% Radio 28,537 39,277 41,287 (27 )% (5 )% Consolidated 104,909 119,412 125,242 (12 )% (5 )% Selling, general and administrative expenses Television 19,748 22,638 21,864 (13 )% 4 % Digital 15,404 13,904 11,590 11 % 20 % Radio 13,252 17,423 18,081 (24 )% (4 )% Consolidated 48,404 53,965 51,535 (10 )% 5 % Depreciation and amortization Television 12,918 10,059 9,024 28 % 11 % Digital 2,561 4,723 4,759 (46 )% (1 )% Radio 1,803 1,866 2,490 (3 )% (25 )% Consolidated 17,282 16,648 16,273 4 % 2 % Segment operating profit (loss) Television 60,645 55,179 59,589 10 % (7 )% Digital 3,189 (4,833 ) (1,984 ) (166 )% 144 % Radio 2,669 (3,553 ) 2,064 * (272 )% Consolidated 66,503 46,793 59,669 42 % (22 )% Corporate expenses 27,807 28,067 26,865 (1 )% 4 % Change in fair value of contingent consideration — (6,478 ) (1,202 ) (100 )% 439 % Impairment charge 40,035 32,097 — 25 % * Foreign currency (gain) loss (1,052 ) 754 1,616 * (53 )% Other operating (gain) loss (6,895 ) (5,994 ) (1,187 ) 15 % 405 % Operating income (loss) $ 6,608 $ (1,653 ) $ 33,577 * * Capital expenditures Television $ 7,184 $ 24,174 $ 14,336 Digital 1,659 318 1,031 Radio 641 792 350 Consolidated $ 9,484 $ 25,284 $ 15,717 Total assets Television $ 425,899 $ 465,758 $ 487,929 Digital 196,020 51,979 81,460 Radio 125,426 138,463 121,020 Consolidated $ 747,345 $ 656,200 $ 690,409 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results of Operations | The following is a summary of the quarterly results of operations for the years ended December 31, 2020 and 2019 (in thousands, except per share data). The Company believes that the following information reflects all normal recurring adjustments necessary for a fair presentation of the information for the periods presented. The operating results for any quarter are not necessarily indicative of results for any future period. Year ended December 31, 2020: First Quarter Second Quarter Third Quarter Fourth Quarter Total Net revenue $ 64,249 $ 45,116 $ 62,978 $ 171,683 $ 344,026 Net income (loss) attributable to common stockholders (35,592 ) 2,338 9,016 20,328 (3,910 ) Net income (loss) per share attributable to common stockholders, basic and diluted $ (0.42 ) $ 0.03 $ 0.11 $ 0.24 $ (0.05 ) Year ended December 31, 2019: First Quarter Second Quarter Third Quarter Fourth Quarter Total Net revenue $ 64,680 $ 69,241 $ 68,816 $ 70,838 $ 273,575 Net income (loss) attributable to common stockholders 1,424 (16,279 ) (12,217 ) 7,360 (19,712 ) Net income (loss) per share attributable to common stockholders, basic and diluted $ 0.02 $ (0.19 ) $ (0.14 ) $ 0.09 $ (0.23 ) |
Nature of Business - Additional
Nature of Business - Additional Information (Detail) | May 28, 2020 | Apr. 16, 2020 | Jun. 30, 2020 | Dec. 31, 2020SegmentStationLocationMarketInstallment |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | Segment | 3 | |||
Percentage of defer the employer portion of social security payroll tax of CARES act | 6.20% | |||
Number of installments of deferred employer portion of social security payroll tax of CARES act | Installment | 2 | |||
Percentage of installment of deferred employer portion of social security payroll tax of CARES act | 50.00% | |||
Percentage of reduction in dividends | 50.00% | |||
Non-Employee Director | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of decreased in annual fees | 20.00% | |||
Minimum | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of reduction in salaries | 2.50% | |||
Maximum [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of reduction in salaries | 22.50% | |||
Television | ||||
Segment Reporting Information [Line Items] | ||||
Number of stations owned | 54 | |||
Radio | ||||
Segment Reporting Information [Line Items] | ||||
Number of stations owned | 48 | |||
Radio operations stations, number of location | Location | 16 | |||
Advertisements and Syndicate Radio Programming | Minimum | ||||
Segment Reporting Information [Line Items] | ||||
Number of markets owned | Market | 100 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)MarketAgreementshares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)shares | |
Accounting Policies [Line Items] | |||||||||||
Cash and cash equivalents | $ 119,162 | $ 33,123 | $ 119,162 | $ 33,123 | |||||||
Restricted cash | 749 | 734 | 749 | 734 | |||||||
Available for sale securities | 27,988 | 91,662 | 27,988 | 91,662 | |||||||
Estimated losses for bad debts | 2,500 | 2,300 | $ 1,800 | ||||||||
Bad debts actually charged off | 1,500 | 2,800 | 1,200 | ||||||||
Long term debt fair value | 210,500 | 211,700 | $ 210,500 | 211,700 | |||||||
Percentage of tax benefit recognized | 50.00% | ||||||||||
Advertising expense | $ 100 | 500 | 100 | ||||||||
Net revenue | $ 171,683 | $ 62,978 | $ 45,116 | $ 64,249 | 70,838 | $ 68,816 | $ 69,241 | $ 64,680 | 344,026 | 273,575 | 297,815 |
Broadcast trade cost | $ 200 | $ 500 | $ 700 | ||||||||
Shares of dilutive securities not included in computation of diluted earnings per share | shares | 892,720 | 1,117,216 | 182,847 | ||||||||
Other comprehensive income (loss), net of tax | $ (925) | $ 1,281 | $ (1,352) | ||||||||
Broadcast Equipment | |||||||||||
Accounting Policies [Line Items] | |||||||||||
Net revenue | $ 200 | 500 | 700 | ||||||||
Univision | |||||||||||
Accounting Policies [Line Items] | |||||||||||
Number of marketing and sales agreements | Agreement | 2 | ||||||||||
Number of markets involved in sales and marketing | Market | 6 | ||||||||||
Cocina Vista, LLC | |||||||||||
Accounting Policies [Line Items] | |||||||||||
Equity method investments | $ 2,600 | $ 2,600 | |||||||||
Equity method investment ownership percentage | 49.00% | 49.00% | |||||||||
Loss on investment | $ 2,600 | ||||||||||
Accounting Standards Update 2016-18 | |||||||||||
Accounting Policies [Line Items] | |||||||||||
Restricted cash | $ 700 | 700 | $ 700 | ||||||||
Accounting Standards Update 2018-15 | |||||||||||
Accounting Policies [Line Items] | |||||||||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2020 | Jan. 1, 2020 | |||||||||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | true | |||||||||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | true | |||||||||
Accounting Standards Update 2018-13 | |||||||||||
Accounting Policies [Line Items] | |||||||||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2020 | Jan. 1, 2020 | |||||||||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | true | |||||||||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | true | |||||||||
Accounting Standards Update 2016-13 | Available-for-Sale Securities | |||||||||||
Accounting Policies [Line Items] | |||||||||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2020 | Jan. 1, 2020 | |||||||||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | true | |||||||||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | true | |||||||||
Accounting Standards Update 2016-13 | Trade Accounts Receivable | |||||||||||
Accounting Policies [Line Items] | |||||||||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2020 | Jan. 1, 2020 | |||||||||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | true | |||||||||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | true | |||||||||
Outside the United States | |||||||||||
Accounting Policies [Line Items] | |||||||||||
Cash and cash equivalents | $ 34,500 | $ 5,300 | $ 34,500 | $ 5,300 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Reconciliation of Basic and Diluted Income (Loss) Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator: | |||||||||||
Net income (loss) attributable to common stockholders | $ 20,328 | $ 9,016 | $ 2,338 | $ (35,592) | $ 7,360 | $ (12,217) | $ (16,279) | $ 1,424 | $ (3,910) | $ (19,712) | $ 12,161 |
Denominator: | |||||||||||
Weighted average common shares outstanding, basic | 84,231,212 | 85,107,301 | 89,115,997 | ||||||||
Basic earnings per share: | |||||||||||
Net income (loss) per share attributable to common stockholders | $ (0.05) | $ (0.23) | $ 0.14 | ||||||||
Numerator: | |||||||||||
Net income (loss) attributable to common stockholders | $ 20,328 | $ 9,016 | $ 2,338 | $ (35,592) | $ 7,360 | $ (12,217) | $ (16,279) | $ 1,424 | $ (3,910) | $ (19,712) | $ 12,161 |
Denominator: | |||||||||||
Weighted average common shares outstanding, basic | 84,231,212 | 85,107,301 | 89,115,997 | ||||||||
Dilutive securities: | |||||||||||
Stock options | 629,933 | ||||||||||
Restricted stock units | 582,653 | ||||||||||
Weighted average common shares outstanding, diluted | 84,231,212 | 85,107,301 | 90,328,583 | ||||||||
Diluted earnings per share: | |||||||||||
Net income (loss) per share attributable to common stockholders | $ (0.05) | $ (0.23) | $ 0.13 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | Oct. 13, 2020 | Jan. 22, 2020 | Nov. 07, 2019 | Jun. 11, 2018 | Jan. 16, 2018 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||||||||||||||
Total net revenue | $ 171,683 | $ 62,978 | $ 45,116 | $ 64,249 | $ 70,838 | $ 68,816 | $ 69,241 | $ 64,680 | $ 344,026 | $ 273,575 | $ 297,815 | |||||
Other operating gain | 6,895 | $ 5,994 | 1,187 | |||||||||||||
KMCC-TV | I O N Media Stations Inc | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Consideration from sale of television station | $ 4,000 | |||||||||||||||
Discontinued operation, description | April 2, 2020, the Company sold KMCC-TV to ION Media Stations, Inc. for $4.0 million. | |||||||||||||||
Other operating gain | $ 600 | |||||||||||||||
Cisneros Interactive | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Noncontrolling interest | 49.00% | |||||||||||||||
Cisneros Interactive | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Ownership Interest acquired | 51.00% | |||||||||||||||
Business acquisition date | Oct. 13, 2020 | |||||||||||||||
Aggregate cash consideration | $ 29,900 | |||||||||||||||
Business acquisition description of acquired entity | Subject to the terms of the Put and Call Agreement, if certain minimum EBITDA targets are met, the Sellers have the right (the “Put Option”), between March 15, 2024 and June 13, 2024, to cause the Company to purchase all (but not less than all) of the remaining 49% of the issued and outstanding shares of Cisneros Interactive at a purchase price to be based on a pre-determined multiple of six times Cisneros Interactive’s 12-month EBITDA in the preceding calendar year. The sellers may also exercise the Put Option upon the occurrence of certain events, between March 2022 and April 2024. | |||||||||||||||
Accounts receivables assets acquired, fair value | 50,500 | |||||||||||||||
Gross amount account receivables asset acquired | 54,000 | |||||||||||||||
Amount due under contract expected to be uncollectible | 3,500 | |||||||||||||||
Total net revenue | $ 89,200 | |||||||||||||||
Net income (loss) | 5,100 | |||||||||||||||
Redeemable noncontrolling interest | 30,800 | |||||||||||||||
Acquisition fees and costs | $ 900 | |||||||||||||||
Cash acquired | $ 8,700 | |||||||||||||||
Cisneros Interactive | Put Option | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Agreed future ownership Interest acquired | 49.00% | |||||||||||||||
Cisneros Interactive | Call Option | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Agreed future ownership Interest acquired | 49.00% | |||||||||||||||
Business acquisition description of acquired entity | Additionally, subject to the terms of the Put and Call Agreement, the Company has the right (the “Call Option”), in calendar year 2024, to purchase all (but not less than all) of the remaining 49% of the issued and outstanding shares of Cisneros Interactive at a purchase price to be based on a pre-determined multiple of six times of Cisneros Interactive’s 12-month EBITDA in calendar year 2023. | |||||||||||||||
KMBH-TV | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Business acquisition date | Nov. 7, 2019 | |||||||||||||||
Aggregate cash consideration | $ 2,900 | |||||||||||||||
Business acquisition description of acquired entity | the Company completed the acquisition of television station KMBH-TV, serving the McAllen, Texas area | |||||||||||||||
KMBH-TV | Intangible Assets Not Subject to Amortization | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Asset acquired | $ 2,300 | |||||||||||||||
Smadex | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Ownership Interest acquired | 100.00% | |||||||||||||||
Business acquisition date | Jun. 11, 2018 | |||||||||||||||
Aggregate cash consideration | $ 3,500 | |||||||||||||||
Accounts receivables assets acquired, fair value | 900 | |||||||||||||||
Gross amount account receivables asset acquired | 900 | |||||||||||||||
Total net revenue | 6,400 | |||||||||||||||
Acquisition fees and costs | 400 | |||||||||||||||
Cash acquired | $ 1,200 | |||||||||||||||
Expenses | $ 5,800 | |||||||||||||||
KMCC-TV | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Business acquisition date | Jan. 16, 2018 | |||||||||||||||
Aggregate cash consideration | $ 3,600 | |||||||||||||||
Business acquisition description of acquired entity | the Company completed the acquisition of television station KMCC-TV, which serves the Las Vegas, Nevada area | the Company completed the acquisition of television station KMCC-TV, which serves the Las Vegas, Nevada area |
Acquisitions - Reconciliation o
Acquisitions - Reconciliation of Changes in Redeemable Noncontrolling Interests (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Temporary Equity [Abstract] | |
Initial fair value of redeemable noncontrolling interests | $ 30,762 |
Net income (loss) attributable to redeemable noncontrolling interest | 2,523 |
Ending balance | $ 33,285 |
Acquisitions - Summary of Purch
Acquisitions - Summary of Purchase Price Allocation (Detail) - USD ($) $ in Thousands | Oct. 13, 2020 | Jun. 11, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 58,043 | $ 46,511 | $ 74,292 | ||
Cisneros Interactive | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 8,700 | ||||
Accounts receivable | 50,500 | ||||
Other assets | 6,200 | ||||
Intangible assets subject to amortization | 41,700 | ||||
Goodwill | 12,300 | ||||
Current liabilities | (48,100) | ||||
Deferred tax | (10,600) | ||||
Redeemable noncontrolling interest | (30,800) | ||||
Purchase price consideration | $ 29,900 | ||||
Smadex | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 1,200 | ||||
Accounts receivable | 900 | ||||
Other assets | 400 | ||||
Intangible assets subject to amortization | 2,000 | ||||
Goodwill | 3,600 | ||||
Current liabilities | (2,800) | ||||
Deferred tax | (400) | ||||
Purchase price consideration | 3,500 | ||||
Long-term liabilities | $ (200) |
Acquisitions - Summary of Intan
Acquisitions - Summary of Intangible Assets Subject to Amortization Acquired (Detail) - Cisneros Interactive $ in Millions | Oct. 13, 2020USD ($) |
Publisher Relationships | |
Finite Lived Intangible Assets [Line Items] | |
Estimated Fair Value, Intangible Asset | $ 34.4 |
Weighted average life (in years), Intangible Assets | 10 years |
Advertiser Relationships | |
Finite Lived Intangible Assets [Line Items] | |
Estimated Fair Value, Intangible Asset | $ 5.2 |
Weighted average life (in years), Intangible Assets | 4 years |
Trade Name | |
Finite Lived Intangible Assets [Line Items] | |
Estimated Fair Value, Intangible Asset | $ 1.7 |
Weighted average life (in years), Intangible Assets | 2 years 6 months |
Non-Compete Agreements | |
Finite Lived Intangible Assets [Line Items] | |
Estimated Fair Value, Intangible Asset | $ 0.4 |
Weighted average life (in years), Intangible Assets | 4 years |
Acquisitions - Schedule of Unau
Acquisitions - Schedule of Unaudited Pro Forma Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cisneros Interactive | |||
Pro Forma: | |||
Total revenue | $ 488,137 | $ 432,966 | |
Net income (loss) | 5,257 | (11,403) | |
Net income (loss) attributable to redeemable noncontrolling interest | (5,343) | (4,071) | |
Net income (loss) attributable to common stockholders | $ (86) | $ (15,474) | |
Basic and diluted earnings per share: | |||
Net income (loss) per share, attributable to common stockholders, basic and diluted | $ 0 | $ (0.18) | |
Weighted average common shares outstanding, basic and diluted | 84,231,212 | 85,107,301 | |
Smadex | |||
Pro Forma: | |||
Total revenue | $ 307,805 | ||
Net income (loss) | $ 13,133 | ||
Basic and diluted earnings per share: | |||
Net income per share, basic | $ 0.15 | ||
Net income per share, diluted | $ 0.15 | ||
Weighted average common shares outstanding, basic | 89,115,997 | ||
Weighted average common shares outstanding, diluted | 90,328,583 |
Revenues - Summary of Revenues
Revenues - Summary of Revenues Disaggregated by Major Source (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | $ 171,683 | $ 62,978 | $ 45,116 | $ 64,249 | $ 70,838 | $ 68,816 | $ 69,241 | $ 64,680 | $ 344,026 | $ 273,575 | $ 297,815 |
Broadcast Advertising | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 152,677 | 148,082 | 169,009 | ||||||||
Digital Advertising | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 143,309 | 68,908 | 80,982 | ||||||||
Spectrum Usage Rights | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 5,429 | 13,061 | 2,976 | ||||||||
Retransmission Consent | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 36,766 | 35,362 | 35,066 | ||||||||
Other | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | $ 5,845 | $ 8,162 | $ 9,782 |
Revenues - Summary of Disaggreg
Revenues - Summary of Disaggregation of Broadcast Advertising Revenue by Sales Channel (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | $ 171,683 | $ 62,978 | $ 45,116 | $ 64,249 | $ 70,838 | $ 68,816 | $ 69,241 | $ 64,680 | $ 344,026 | $ 273,575 | $ 297,815 |
Advertising | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 152,677 | 148,082 | 169,009 | ||||||||
Advertising | Local Direct | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 21,334 | 25,972 | 27,522 | ||||||||
Advertising | Local Agency | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 48,702 | 58,425 | 61,226 | ||||||||
Advertising | National Agency | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | $ 82,641 | $ 63,685 | $ 80,261 |
Revenues - Summary of Deferred
Revenues - Summary of Deferred Revenue (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | ||
Beginning Balance | $ 2,390 | $ 2,759 |
Increase | 3,127 | 2,390 |
Decrease | (2,390) | (2,759) |
Ending Balance | $ 3,127 | $ 2,390 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Carrying Amount of Goodwill (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Line Items] | ||||
Goodwill, Beginning balance | $ 46,511,000 | $ 46,511,000 | $ 74,292,000 | |
Acquisition | 12,332,000 | |||
Currency | (67,000) | |||
Impairment | (800,000) | (27,714,000) | ||
Goodwill, Ending balance | $ 58,043,000 | 58,043,000 | 46,511,000 | |
Television | ||||
Goodwill [Line Items] | ||||
Goodwill, Beginning balance | 40,549,000 | 40,549,000 | 40,549,000 | |
Impairment | 0 | |||
Goodwill, Ending balance | 40,549,000 | 40,549,000 | 40,549,000 | |
Radio | ||||
Goodwill [Line Items] | ||||
Goodwill, Beginning balance | 0 | 0 | ||
Goodwill, Ending balance | 0 | 0 | 0 | |
Digital | ||||
Goodwill [Line Items] | ||||
Goodwill, Beginning balance | 5,962,000 | 5,962,000 | 33,743,000 | |
Acquisition | 12,332,000 | |||
Currency | (67,000) | |||
Impairment | 0 | $ (800,000) | (800,000) | (27,714,000) |
Goodwill, Ending balance | $ 17,494,000 | $ 17,494,000 | $ 5,962,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Composition of Company's Acquired Intangible Assets and Associated Accumulated Amortization (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2020 | |
Schedule Of Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 116,591 | $ 153,164 |
Accumulated Amortization | 99,819 | 103,752 |
Net Carrying Amount | 16,772 | 49,412 |
Intangible assets not subject to amortization: | ||
Total intangible assets | 269,316 | 266,065 |
FCC Licenses and Spectrum Usage Rights | ||
Intangible assets not subject to amortization: | ||
Licenses | $ 252,544 | 216,653 |
Television network affiliation agreements | ||
Schedule Of Intangible Assets [Line Items] | ||
Weighted average remaining life in years | 7 years | |
Gross Carrying Amount | $ 67,489 | 67,488 |
Accumulated Amortization | 58,338 | 59,726 |
Net Carrying Amount | $ 9,151 | 7,762 |
Customer base | ||
Schedule Of Intangible Assets [Line Items] | ||
Weighted average remaining life in years | 4 years | |
Gross Carrying Amount | $ 10,045 | 47,052 |
Accumulated Amortization | 6,414 | 7,874 |
Net Carrying Amount | $ 3,631 | 39,178 |
Pre-sold advertising contracts and other | ||
Schedule Of Intangible Assets [Line Items] | ||
Weighted average remaining life in years | 5 years | |
Gross Carrying Amount | $ 39,057 | 38,624 |
Accumulated Amortization | 35,067 | 36,152 |
Net Carrying Amount | $ 3,990 | $ 2,472 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Additional Information (Detail) | Oct. 01, 2020USD ($)License | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($)Segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Oct. 01, 2019USD ($) |
Goodwill [Line Items] | |||||||||
Aggregate amortization expense | $ 4,000,000 | $ 6,000,000 | $ 6,100,000 | ||||||
Number of reporting segments | Segment | 3 | ||||||||
Impairment of goodwill | $ 800,000 | 27,714,000 | |||||||
Goodwill | $ 58,043,000 | 58,043,000 | 46,511,000 | 74,292,000 | |||||
Digital | |||||||||
Goodwill [Line Items] | |||||||||
Impairment of goodwill | 0 | $ 800,000 | 800,000 | 27,714,000 | |||||
Goodwill | $ 5,200,000 | $ 17,494,000 | 17,494,000 | 5,962,000 | 33,743,000 | ||||
Goodwill, impaired, method for fair value determination | As of the annual goodwill testing date, October 1, 2020, there was $5.2 million of goodwill in the digital reporting unit. The fair value of the digital reporting unit exceeded its carrying value by 20%, resulting in no impairment charge in the fourth quarter of 2020. The calculation of the fair value of the reporting unit requires estimates of the discount rate and the long term projected growth rate. If that discount rate were to increase by 1%, the fair value of the digital reporting unit would decrease by 5%. If the long term projected growth rate were to decrease by 0.5%, the fair value of the digital reporting unit would decrease by 1%. | ||||||||
Percentage of fair value of assets | 20.00% | ||||||||
Impairment charges related to intangible subject to amortization | $ 0 | $ 0 | $ 0 | 5,300,000 | |||||
Impairment charges related to property and equipment | 1,500,000 | ||||||||
Television | |||||||||
Goodwill [Line Items] | |||||||||
Impairment of goodwill | 0 | ||||||||
Goodwill | 40,549,000 | $ 40,549,000 | 40,549,000 | $ 40,549,000 | $ 40,500,000 | ||||
Goodwill, impaired, method for fair value determination | the television reporting unit fair value exceeded its carrying value by 19%, resulting in no impairment charge in 2020. The calculation of the fair value of the reporting unit requires estimates of the discount rate and the long term projected growth rate. If that discount rate were to increase by 0.5%, the fair value of the television reporting unit would decrease by 5%. If the long term projected growth rate were to decrease by 0.5%, the fair value of the television reporting unit would decrease by 3%. | ||||||||
Percentage of fair value of assets | 19.00% | ||||||||
Television | FCC Licenses and Spectrum Usage Rights | |||||||||
Goodwill [Line Items] | |||||||||
Impairment of goodwill | 4,000,000 | ||||||||
Television | FCC Licenses | |||||||||
Goodwill [Line Items] | |||||||||
Impairment charge related to indefinite life intangible assets | 23,500,000 | ||||||||
Radio | |||||||||
Goodwill [Line Items] | |||||||||
Goodwill | $ 0 | $ 0 | 0 | ||||||
Radio | FCC Licenses and Spectrum Usage Rights | |||||||||
Goodwill [Line Items] | |||||||||
Impairment of goodwill | $ 200,000 | ||||||||
Radio | FCC Licenses | |||||||||
Goodwill [Line Items] | |||||||||
Number of licenses exceeds fair value | License | 2 | ||||||||
Impairment charge related to indefinite life intangible assets | $ 200,000 | $ 8,800,000 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Estimated Amortization Expense (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Estimated Amortization Expense | ||
2021 | $ 5,874 | |
2022 | 5,419 | |
2023 | 5,229 | |
2024 | 4,339 | |
2025 | 3,255 | |
Thereafter | 25,296 | |
Net Carrying Amount | $ 49,412 | $ 16,772 |
Property and Equipment - Proper
Property and Equipment - Property and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment excluding land gross | $ 254,600 | $ 258,900 |
Less accumulated depreciation | 191,183 | 188,579 |
Property and equipment excluding land, net | 63,400 | 70,300 |
Land | 8,600 | 9,300 |
Property and equipment, total | 72,004 | 79,642 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment excluding land gross | $ 19,700 | 21,900 |
Property and equipment, Estimated useful life | 40 years | |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment excluding land gross | $ 1,900 | 15,100 |
Transmission, studio and other broadcast equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment excluding land gross | $ 170,300 | 162,100 |
Transmission, studio and other broadcast equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Estimated useful life | 5 years | |
Transmission, studio and other broadcast equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Estimated useful life | 15 years | |
Office and computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment excluding land gross | $ 33,900 | 31,400 |
Office and computer equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Estimated useful life | 3 years | |
Office and computer equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Estimated useful life | 7 years | |
Transportation equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment excluding land gross | $ 6,800 | 6,300 |
Property and equipment, Estimated useful life | 5 years | |
Leasehold improvements and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment excluding land gross | $ 22,000 | $ 22,100 |
Property and equipment, Estimated useful life | Lesser of lease life or useful life |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)Station | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 13.3 | $ 10.6 | $ 10.1 |
FCC | |||
Property, Plant and Equipment [Line Items] | |||
Number of stations assigned to new channels | Station | 17 | ||
Estimated reimbursable cost | $ 16 | ||
Gains on involuntary conversion associated with repack process | $ 5.9 | $ 6 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)ft² | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Lessee Lease Description [Line Items] | |||
Remaining term description of leases | The Company’s existing leases have remaining terms of less than one year up to 30 years. | ||
Non-cancelable operating lease expiration term | 2024-12 | ||
Weighted average remaining lease term | 9 years 10 months 24 days | 11 years 4 months 24 days | |
Weighted average discount rate | 6.30% | 6.20% | |
Lease cost | $ 11,411 | $ 12,878 | |
Total rent expense under operating leases | $ 12,000 | ||
Direct Operating Expenses | |||
Lessee Lease Description [Line Items] | |||
Lease cost | 5,900 | 6,100 | |
Selling, General and Administrative Expenses | |||
Lessee Lease Description [Line Items] | |||
Lease cost | 4,700 | 6,000 | |
Corporate Expenses | |||
Lessee Lease Description [Line Items] | |||
Lease cost | $ 800 | $ 800 | |
Santa Monica | |||
Lessee Lease Description [Line Items] | |||
Area under operating leases for corporate headquarters | ft² | 16,000 | ||
Lease Expiration Year | 2021 | ||
Los Angeles | |||
Lessee Lease Description [Line Items] | |||
Area under operating leases for corporate headquarters | ft² | 41,000 | ||
Lease Expiration Year | 2026 | ||
Facilities and Broadcast Equipment | |||
Lessee Lease Description [Line Items] | |||
Non-cancelable operating lease expiration term | 2050-11 | ||
Maximum | |||
Lessee Lease Description [Line Items] | |||
Remaining term of leases | 30 years |
Leases - Summary of Expected Fu
Leases - Summary of Expected Future Payments Related to Lease Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2021 | $ 9,421 | |
2022 | 8,231 | |
2023 | 6,560 | |
2024 | 5,587 | |
2025 | 5,245 | |
2026 and thereafter | 15,629 | |
Total minimum payments | 50,673 | |
Less amounts representing interest | (11,608) | |
Present value of minimum lease payments | 39,065 | |
Less current operating lease liabilities | (7,290) | $ (9,056) |
Long-term operating lease liabilities | $ 31,775 | $ 41,387 |
Leases - Summary of Lease Payme
Leases - Summary of Lease Payments and Supplemental Non-Cash Disclosures (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in lease liabilities: | ||
Operating cash flows from operating leases | $ 12,049 | $ 10,582 |
Non-cash additions to operating lease assets | $ 2,593 | $ 4,797 |
Leases - Summary of Components
Leases - Summary of Components of Lease Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 9,891 | $ 10,232 |
Variable lease cost | 672 | 1,978 |
Short-term lease cost | 848 | 668 |
Total lease cost | $ 11,411 | $ 12,878 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses - Accounts Payable and Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Payables And Accruals [Abstract] | ||
Accounts payable | $ 49,700 | $ 11,500 |
Accrued payroll and compensated absences | 7,400 | 4,500 |
Accrued bonuses | 4,000 | 4,300 |
Professional fees | 1,300 | 300 |
Deferred revenue | 3,100 | 2,400 |
Accrued national representation fees | 1,600 | 1,000 |
Income taxes payable | 3,400 | 8,500 |
Other taxes payable | 10,400 | 2,100 |
Amounts due under joint sales agreements | 1,200 | 1,300 |
Accrued property taxes | 1,800 | 1,500 |
Accrued capital expenditures | 1,200 | 700 |
Accrued media costs – digital | 36,200 | 9,900 |
Other | 5,500 | 5,900 |
Accounts Payable and Accrued Expenses | $ 126,849 | $ 53,931 |
Long-Term Debt - Long-Term Debt
Long-Term Debt - Long-Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
Term Loan | $ 215,300 | $ 218,200 |
Less current maturities | 3,000 | 3,000 |
Long term debt, net current portion | 212,300 | 215,200 |
Unamortized debt issuance costs | 1,796 | 2,226 |
Long term debt noncurrent | $ 210,454 | $ 213,024 |
Long-Term Debt - Scheduled Matu
Long-Term Debt - Scheduled Maturities of Long-Term Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Long Term Debt By Maturity [Abstract] | ||
2021 | $ 3 | |
2022 | 3 | |
2023 | 3 | |
2024 | 206.3 | |
Term Loan | $ 215.3 | $ 218.2 |
Long-Term Debt - 2017 Credit Fa
Long-Term Debt - 2017 Credit Facility - Additional Information (Detail) - USD ($) | Nov. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | $ 2,226,000 | $ 1,796,000 | |
2017 Credit Facility | |||
Debt Instrument [Line Items] | |||
Agreement date | Nov. 30, 2017 | ||
Additional borrowing capacity | $ 100,000,000 | ||
First lien net leverage ratio | 4.00% | ||
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 | |||
Debt Instrument [Line Items] | |||
Variable interest rate basis spread on debt | 2.75% | ||
2017 Credit Facility | Base Rate Margin | |||
Debt Instrument [Line Items] | |||
Variable interest rate basis spread on debt | 1.75% | ||
2017 Credit Facility | Term Loan B Facility | |||
Debt Instrument [Line Items] | |||
Senior Secured debt | $ 300,000,000 | ||
Maturity date of revolving credit facility | Nov. 30, 2024 | ||
Interest rate on term loan | 2.90% | ||
Prepayments to reduce loans outstanding | $ 25,000,000 | $ 0 | |
Carrying value of term loan | 213,500,000 | ||
Unamortized debt issuance costs | 1,800,000 | ||
Estimated fair value of term loan | $ 210,500,000 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Assets and Liabilities Measured on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Money Market Account | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value and Carrying Value on Assets | $ 59.9 | $ 21.3 |
Certificates of Deposit | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value and Carrying Value on Assets | 2.8 | 6.1 |
Corporate Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value and Carrying Value on Assets | 25.2 | 85.6 |
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 | 59.9 | 21.3 |
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 | 2.8 | 6.1 |
Level 2 | Corporate Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value and Carrying Value on Assets | $ 25.2 | $ 85.6 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Amortized Cost and Unrealized (Gains) Losses of Available for Sale Securities (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Certificates of Deposit | |
Amortized Cost | |
Due within a year | $ 2,796 |
Total | 2,796 |
Unrealized gains (losses) | |
Due within a year | 18 |
Total | 18 |
Corporate Bonds | |
Amortized Cost | |
Due within a year | 24,941 |
Total | 24,941 |
Unrealized gains (losses) | |
Due within a year | 233 |
Total | $ 233 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income (Loss) before Provision for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 2 | $ (0.4) | $ 23.5 |
Foreign | (1.9) | (10.9) | (2.1) |
Income (loss) before provision for income taxes | $ 0.1 | $ (11.3) | $ 21.4 |
Income Taxes - Provision (Benef
Income Taxes - Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current | |||
Federal | $ 1,200 | $ (100) | $ 200 |
State | (1,200) | 9,400 | 500 |
Foreign | 1,500 | 1,900 | 1,500 |
Gross | 1,500 | 11,200 | 2,200 |
Deferred | |||
Federal | 800 | 2,900 | 5,000 |
State | (1,000) | (4,000) | 2,200 |
Foreign | 200 | (1,900) | (1,500) |
Gross | (3,000) | 5,700 | |
Total provision (benefit) for taxes | $ 1,506 | $ 8,158 | $ 7,877 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Loss Carryforwards [Line Items] | |||
Federal income tax rate | 21.00% | 21.00% | 21.00% |
Federal net operating loss carryforwards expiration period start | 2031 | ||
Federal net operating loss carryforwards expiration period end | 2033 | ||
State net operating loss carryforwards expiration period start | 2028 | ||
State net operating loss carryforwards expiration period end | 2037 | ||
Deferred tax assets, valuation allowance | $ 1.7 | ||
Unrecognized tax benefits due to uncertain tax positions | 4.3 | $ 6.7 | $ 6 |
Unrecognized tax benefits which would effect effective tax rate if recognized | 1.2 | ||
Unrecognized tax benefits, significant decrease possible within next 12 months | 3.6 | ||
Unrecognized tax benefits, amount would impact effective tax rate | 0.6 | ||
Accrued interest and penalties related to uncertain tax positions | 0.1 | ||
Domestic Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Federal Net operating loss carrying forward | $ 59 | ||
Domestic Tax Authority | Earliest Tax Year | |||
Operating Loss Carryforwards [Line Items] | |||
Income tax year under examination | 2017 | ||
Domestic Tax Authority | Latest Tax Year | |||
Operating Loss Carryforwards [Line Items] | |||
Income tax year under examination | 2019 | ||
Foreign Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Federal Net operating loss carrying forward | $ 5 | ||
Foreign Tax Authority | Earliest Tax Year | |||
Operating Loss Carryforwards [Line Items] | |||
Income tax year under examination | 2007 | ||
Foreign Tax Authority | Latest Tax Year | |||
Operating Loss Carryforwards [Line Items] | |||
Income tax year under examination | 2018 | ||
State and Local Jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Federal Net operating loss carrying forward | $ 58 | ||
State and Local Jurisdiction | Earliest Tax Year | |||
Operating Loss Carryforwards [Line Items] | |||
Income tax year under examination | 2016 | ||
State and Local Jurisdiction | Latest Tax Year | |||
Operating Loss Carryforwards [Line Items] | |||
Income tax year under examination | 2019 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Computed “expected” tax provision (benefit) | $ (2,400) | $ 4,500 | |
Change in income tax resulting from: | |||
State taxes, net of federal benefit | $ 700 | 1,000 | 1,500 |
Change in fair value of earnout | (1,600) | 400 | |
Non-deductible executive compensation | 400 | 300 | 300 |
Non-deductible expenses | 200 | 300 | 300 |
Foreign income | 100 | 200 | |
State tax impact of previously deferred gain from FCC auction for broadcast spectrum | (2,500) | 2,700 | |
Transaction costs | 100 | 100 | |
Change in valuation allowance | 1,700 | ||
Change in state tax rate | 500 | 400 | 500 |
Stock compensation | 200 | 400 | 500 |
Change in unrecognized tax benefits | 100 | 700 | (300) |
Impairment | 200 | 6,300 | |
Other | (200) | (100) | 100 |
Total provision (benefit) for taxes | $ 1,506 | $ 8,158 | $ 7,877 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Accrued expenses | $ 1.9 | $ 0.7 |
Accounts receivable | 1 | 0.6 |
Net operating loss carryforward | 16.4 | 20.5 |
Stock-based compensation | 1.1 | 1.2 |
Credits | 0.1 | 0.1 |
Lease obligations | 10.1 | 12.6 |
Other comprehensive income | 0.4 | |
Other | 0.6 | 0.6 |
Total deferred tax assets | 31.6 | 36.3 |
Valuation allowance | (1.7) | |
Net deferred tax assets | 29.9 | 36.3 |
Deferred tax liabilities: | ||
Intangible assets | (69.1) | (65.7) |
Property and equipment | (7.2) | (4) |
Lease assets | (8.4) | (10.9) |
Other | (0.2) | |
Total deferred tax liabilities | (84.9) | (80.6) |
Net deferred tax liabilities | $ (55) | $ (44.3) |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Beginning Balance | $ 6.7 | $ 6 |
Increase in balances related to prior year tax positions | 0.7 | |
Lapse of statute | (0.4) | |
Interest accrued | 0.1 | |
Decrease in balances related to prior year tax positions | (2.1) | |
Ending Balance | $ 4.3 | $ 6.7 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Commitments And Contingencies Disclosure [Abstract] | |
Lease commitment with media research and rating providers, aggregate amount | $ 10,500,000 |
Non-cancelable operating lease expiration term | 2024-12 |
Lease commitments with research and rating providers annual commitments in 2021 | $ 7,500,000 |
Lease commitments with research and rating providers annual commitments in 2022 | 1,400,000 |
Lease commitments with research and rating providers annual commitments after 2022 | $ 1,600,000 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 12 Months Ended | 42 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Aug. 27, 2019 | Apr. 11, 2018 | Jul. 13, 2017 | |
Schedule Of Capitalization Equity [Line Items] | |||||||
Common stock, voting rights | Class B common stock is entitled to ten votes per share as compared to one vote per share for the Class A common stock | ||||||
Cash dividend paid per share | $ 0.13 | $ 0.20 | |||||
Aggregate amount of cash dividends paid | $ 10,500,000 | $ 17,000,000 | |||||
Preferred stock, shares issued | 0 | 0 | 0 | ||||
Preferred stock, shares outstanding | 0 | 0 | 0 | ||||
Amount approved under share purchase | $ 45,000,000 | $ 30,000,000 | $ 15,000,000 | ||||
Aggregate purchase price of repurchased shares | $ 525,000 | $ 12,565,000 | $ 13,812,000 | ||||
Class A common stock | |||||||
Schedule Of Capitalization Equity [Line Items] | |||||||
Amount approved under share purchase | $ 15,000,000 | $ 15,000,000 | |||||
Number of shares repurchased | 300,000 | 3,800,000 | 3,500,000 | 8,600,000 | |||
Average price of repurchased shares | $ 2.02 | $ 3.30 | $ 3.90 | $ 3.76 | |||
Aggregate purchase price of repurchased shares | $ 500,000 | $ 12,600,000 | $ 13,800,000 | $ 32,200,000 |
Equity Incentive Plans - Additi
Equity Incentive Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Securities remaining available for future issuance | 3,700,000 | ||
Employee Stock Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock options granted (in shares) | 0 | 0 | |
Share-based compensation expenses | $ 0 | ||
Employee Stock Options | Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
Employee Stock Options | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Restricted Stock And Restricted Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Performance-based restricted stock and restricted stock units, eliminated minimum vesting period under amended 2004 plan | 3 years | ||
Share-based compensation expenses | $ 5,100,000 | $ 4,400,000 | $ 5,800,000 |
Total unrecognized compensation expense related to grants of restricted stock and restricted stock units | $ 5,600,000 | ||
Weighted average period for unrecognized compensation expense related to grants of stock options | 1 year 9 months 18 days | ||
Shares vested related to grants of restricted stock and restricted stock units | $ 5,500,000 | $ 5,000,000 | $ 5,200,000 |
2000 Plan | Employee Stock Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Contractual term of stock options | ten years | ||
2000 Plan | Employee Stock Options | Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
2000 Plan | Employee Stock Options | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 5 years | ||
2000 Plan | Class A common stock | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock shares authorized under 2000 plan and 2004 plan | 11,500,000 | ||
2004 Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation award extended expiration date | May 29, 2024 | ||
2004 Plan | Employee Stock Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Contractual term of stock options | ten years | ||
Vesting period | 4 years | ||
2004 Plan | Class A common stock | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock shares authorized under 2000 plan and 2004 plan | 10,000,000 |
Equity Incentive Plans - Summar
Equity Incentive Plans - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Number of Shares Outstanding, Beginning Balance | 944 | 1,115 | 1,328 |
Number of Shares, Exercised | (10) | (49) | (177) |
Number of Shares, Forfeited or cancelled | (50) | (122) | (36) |
Number of Shares Outstanding, Ending Balance | 884 | 944 | 1,115 |
Number of Shares, Vested and Exercisable | 884 | ||
Weighted-Average Exercise Price, Beginning Balance | $ 2.20 | $ 2.45 | $ 2.50 |
Weighted-Average Exercise Price, Exercised | 1.92 | 1.75 | 2.42 |
Weighted-Average Exercise Price, Forfeited or cancelled | 2.87 | 4.65 | 4.40 |
Weighted-Average Exercise Price, Ending Balance | 2.17 | $ 2.20 | $ 2.45 |
Weighted-Average Exercise Price, Vested and Exercisable | $ 2.17 | ||
Weighted-Average Remaining Contractual Life (Years) | 1 year 9 months 10 days | ||
Weighted-Average Remaining Contractual Life (Years), Vested and Exercisable | 1 year 9 months 10 days | ||
Aggregate Intrinsic Value Outstanding, Beginning Balance | $ 627 | $ 970 | $ 6,175 |
Aggregate Intrinsic Value, Exercised | 11 | 70 | 407 |
Aggregate Intrinsic Value Outstanding, Ending Balance | 722 | $ 627 | $ 970 |
Aggregate Intrinsic Value, Vested and Exercisable | $ 722 |
Equity Incentive Plans - Summ_2
Equity Incentive Plans - Summary of Nonvested Restricted Stock and Restricted Stock Units Activity (Detail) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Number of Shares Nonvested, Beginning Balance | 2,256 | 1,776 | 1,557 |
Number of Shares, Granted | 2,623 | 1,582 | 1,121 |
Number of Shares, Vested | (1,427) | (1,012) | (798) |
Number of Shares, Forfeited or Cancelled | (81) | (90) | (104) |
Number of Shares Nonvested Ending Balance | 3,371 | 2,256 | 1,776 |
Weighted-Average Grant Date Fair Value, Beginning Balance | $ 3.64 | $ 5.08 | $ 7.18 |
Weighted-Average Grant Date Fair Value, Granted | 2.96 | 2.74 | 3.20 |
Weighted-Average Grant Date Fair Value, Vested | 3.63 | 4.58 | 6.11 |
Weighted-Average Grant Date Fair Value, Forfeited or Cancelled | 3.15 | 4.69 | 7.28 |
Weighted-Average Grant Date Fair Value, Ending Balance | $ 3.12 | $ 3.64 | $ 5.08 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($)MarketAgreementshares | Dec. 31, 2019USD ($) | |
Related Party Transaction [Line Items] | ||
Number of Class A common stock shares converted | shares | 1 | |
Retransmission consent revenue | $ 36.8 | $ 35.4 |
Fees paid for carriage of programming | $ 0 | |
Univision | ||
Related Party Transaction [Line Items] | ||
Number of marketing and sales agreements | Agreement | 2 | |
Number of markets involved in sales and marketing | Market | 6 | |
Common stock percentage held by Univision | 11.00% | |
Retransmission consent revenue | $ 26.8 | 27.4 |
Accounts receivable from third parties | $ 4.4 | $ 4.4 |
UniMas | ||
Related Party Transaction [Line Items] | ||
Affiliate advertising minutes per hour for which entity has right to sell | 4 minutes 30 seconds | |
Minimum | Univision | ||
Related Party Transaction [Line Items] | ||
Affiliate advertising minutes per hour for which entity has right to sell | 4 minutes |
Related-Party Transactions - Su
Related-Party Transactions - Summary of Related-Party Balances with Univision and Other Related Parties (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||
Trade receivables | $ 142,004 | $ 71,406 | |
Other current assets | 18,021 | 11,557 | |
Intangible assets subject to amortization, net | 49,412 | 16,772 | |
Accounts payable | 126,849 | 53,931 | |
Direct operating expenses | 104,909 | 119,412 | $ 125,242 |
Amortization | 17,282 | 16,648 | 16,273 |
Univision | |||
Related Party Transaction [Line Items] | |||
Trade receivables | 6,172 | 4,350 | |
Intangible assets subject to amortization, net | 5,869 | 7,098 | |
Accounts payable | 1,969 | 2,029 | |
Direct operating expenses | 9,063 | 8,194 | 9,254 |
Amortization | 1,228 | 1,229 | 1,228 |
Other | |||
Related Party Transaction [Line Items] | |||
Other current assets | 274 | 274 | |
Accounts payable | 118 | 118 | |
Related Parties | |||
Related Party Transaction [Line Items] | |||
Trade receivables | 6,172 | 4,350 | |
Other current assets | 274 | 274 | |
Intangible assets subject to amortization, net | 5,869 | 7,098 | |
Accounts payable | 2,087 | 2,147 | |
Direct operating expenses | 9,063 | 8,194 | 9,254 |
Amortization | $ 1,228 | $ 1,229 | $ 1,228 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Summary of Components of AOCI (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance, Beginning | $ 288,172 | $ 332,732 | $ 348,275 |
Other comprehensive income (loss) | (900) | 1,800 | (1,600) |
Income tax (expense) benefit | (500) | 300 | |
Total other comprehensive income (loss) | (925) | 1,281 | (1,352) |
Balance, Ending | 275,980 | 288,172 | 332,732 |
Foreign Currency Translation | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance, Beginning | (500) | (400) | (100) |
Other comprehensive income (loss) | (900) | (100) | (300) |
Total other comprehensive income (loss) | (900) | (100) | (300) |
Balance, Ending | (1,400) | (500) | (400) |
Marketable Securities | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance, Beginning | 400 | (1,000) | |
Other comprehensive income (loss) | 1,900 | (1,300) | |
Income tax (expense) benefit | (500) | 300 | |
Total other comprehensive income (loss) | 1,400 | (1,000) | |
Balance, Ending | 400 | 400 | (1,000) |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance, Beginning | (131) | (1,412) | (60) |
Balance, Ending | $ (1,056) | $ (131) | $ (1,412) |
Segment Data - Additional Infor
Segment Data - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2020SegmentStationMarket | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | Segment | 3 | ||
Percentage of revenue generated from outside the United States | 36.00% | 18.00% | 18.00% |
Television | |||
Segment Reporting Information [Line Items] | |||
Number of stations owned | 54 | ||
Radio | |||
Segment Reporting Information [Line Items] | |||
Number of stations owned | 48 | ||
Advertisements and Syndicates Radio Programming | Minimum | |||
Segment Reporting Information [Line Items] | |||
Number of markets owned | Market | 100 |
Segment Data - Separate Financi
Segment Data - Separate Financial Data for Each of Company's Operating Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Net revenue | $ 171,683 | $ 62,978 | $ 45,116 | $ 64,249 | $ 70,838 | $ 68,816 | $ 69,241 | $ 64,680 | $ 344,026 | $ 273,575 | $ 297,815 |
Direct operating expenses | 104,909 | 119,412 | 125,242 | ||||||||
Selling, general and administrative expenses | 48,404 | 53,965 | 51,535 | ||||||||
Depreciation and amortization | 17,282 | 16,648 | 16,273 | ||||||||
Operating income (loss) | 6,608 | (1,653) | 33,577 | ||||||||
Corporate expenses | 27,807 | 28,067 | 26,865 | ||||||||
Change in fair value of contingent consideration | (6,478) | (1,202) | |||||||||
Impairment charge | 40,035 | 32,097 | |||||||||
Foreign currency (gain) loss | (1,052) | 754 | 1,616 | ||||||||
Other operating (gain) loss | (6,895) | (5,994) | (1,187) | ||||||||
Capital expenditures | 9,484 | 25,284 | 15,717 | ||||||||
Total assets | 747,345 | 656,200 | $ 747,345 | $ 656,200 | 690,409 | ||||||
Percentage change in net revenue | 26.00% | (8.00%) | |||||||||
Percentage change in direct operating expenses | (12.00%) | (5.00%) | |||||||||
Percentage change in selling, general and administrative expenses | (10.00%) | 5.00% | |||||||||
Percentage change in depreciation and amortization | 4.00% | 2.00% | |||||||||
Percentage change in segment operating profit (loss) | 42.00% | (22.00%) | |||||||||
Percentage change in corporate expenses | (1.00%) | 4.00% | |||||||||
Percentage change in fair value of contingent consideration | (100.00%) | 439.00% | |||||||||
Percentage change in impairment charge | 25.00% | ||||||||||
Percentage change in foreign currency (gain) loss | (53.00%) | ||||||||||
Percentage change in other operating (gain) loss | 15.00% | 405.00% | |||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income (loss) | $ 66,503 | $ 46,793 | 59,669 | ||||||||
Corporate, Non-Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Corporate expenses | 27,807 | 28,067 | 26,865 | ||||||||
Television | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Direct operating expenses | 61,145 | 61,778 | 62,434 | ||||||||
Selling, general and administrative expenses | 19,748 | 22,638 | 21,864 | ||||||||
Depreciation and amortization | 12,918 | 10,059 | 9,024 | ||||||||
Capital expenditures | 7,184 | 24,174 | 14,336 | ||||||||
Total assets | 425,899 | 465,758 | $ 425,899 | $ 465,758 | 487,929 | ||||||
Percentage change in direct operating expenses | (1.00%) | (1.00%) | |||||||||
Percentage change in selling, general and administrative expenses | (13.00%) | 4.00% | |||||||||
Percentage change in depreciation and amortization | 28.00% | 11.00% | |||||||||
Percentage change in segment operating profit (loss) | 10.00% | (7.00%) | |||||||||
Television | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income (loss) | $ 60,645 | $ 55,179 | 59,589 | ||||||||
Radio | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Direct operating expenses | 28,537 | 39,277 | 41,287 | ||||||||
Selling, general and administrative expenses | 13,252 | 17,423 | 18,081 | ||||||||
Depreciation and amortization | 1,803 | 1,866 | 2,490 | ||||||||
Capital expenditures | 641 | 792 | 350 | ||||||||
Total assets | 125,426 | 138,463 | $ 125,426 | $ 138,463 | 121,020 | ||||||
Percentage change in direct operating expenses | (27.00%) | (5.00%) | |||||||||
Percentage change in selling, general and administrative expenses | (24.00%) | (4.00%) | |||||||||
Percentage change in depreciation and amortization | (3.00%) | (25.00%) | |||||||||
Percentage change in segment operating profit (loss) | (272.00%) | ||||||||||
Radio | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income (loss) | $ 2,669 | $ (3,553) | 2,064 | ||||||||
Digital | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Cost of revenue | 106,928 | 36,757 | 45,096 | ||||||||
Direct operating expenses | 15,227 | 18,357 | 21,521 | ||||||||
Selling, general and administrative expenses | 15,404 | 13,904 | 11,590 | ||||||||
Depreciation and amortization | 2,561 | 4,723 | 4,759 | ||||||||
Capital expenditures | 1,659 | 318 | 1,031 | ||||||||
Total assets | $ 196,020 | $ 51,979 | $ 196,020 | $ 51,979 | 81,460 | ||||||
Percentage change in cost of revenue | 191.00% | (18.00%) | |||||||||
Percentage change in direct operating expenses | (17.00%) | (15.00%) | |||||||||
Percentage change in selling, general and administrative expenses | 11.00% | 20.00% | |||||||||
Percentage change in depreciation and amortization | (46.00%) | (1.00%) | |||||||||
Percentage change in segment operating profit (loss) | (166.00%) | 144.00% | |||||||||
Digital | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income (loss) | $ 3,189 | $ (4,833) | (1,984) | ||||||||
Advertising and Retransmission Consent | Television | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenue | $ 154,456 | $ 149,654 | 152,911 | ||||||||
Percentage change in net revenue | 3.00% | (2.00%) | |||||||||
Advertising and Retransmission Consent | Radio | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenue | $ 46,261 | $ 55,013 | 63,922 | ||||||||
Percentage change in net revenue | (16.00%) | (14.00%) | |||||||||
Advertising and Retransmission Consent | Digital | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenue | $ 143,309 | $ 68,908 | $ 80,982 | ||||||||
Percentage change in net revenue | 108.00% | (15.00%) |
Quarterly Results of Operatio_3
Quarterly Results of Operations - Summary of Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net revenue | $ 171,683 | $ 62,978 | $ 45,116 | $ 64,249 | $ 70,838 | $ 68,816 | $ 69,241 | $ 64,680 | $ 344,026 | $ 273,575 | $ 297,815 |
Net income (loss) attributable to common stockholders | $ 20,328 | $ 9,016 | $ 2,338 | $ (35,592) | $ 7,360 | $ (12,217) | $ (16,279) | $ 1,424 | $ (3,910) | $ (19,712) | $ 12,161 |
Net income (loss) per share attributable to common stockholders, basic and diluted | $ 0.24 | $ 0.11 | $ 0.03 | $ (0.42) | $ 0.09 | $ (0.14) | $ (0.19) | $ 0.02 | $ (0.05) | $ (0.23) |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Santa Monica - Subsequent Event - Water Garden Company LLC | Jan. 14, 2021ft² |
Subsequent Event [Line Items] | |
Area under operating leases for corporate headquarters | 8,700 |
Lease extension period | 5 years |
Schedule II - Consolidated Va_2
Schedule II - Consolidated Valuation and Qualifying Accounts (Detail) - Allowance for doubtful accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 2,890 | $ 3,395 | $ 2,566 |
Charged/(Credited) to Expense | 2,452 | 2,314 | 1,785 |
Other Adjustments | (59) | 14 | 208 |
Deductions | (1,493) | (2,833) | (1,164) |
Balance at End of Period | $ 3,790 | $ 2,890 | $ 3,395 |