Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 04, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | EVC | |
Entity Registrant Name | ENTRAVISION COMMUNICATIONS CORP | |
Entity Central Index Key | 0001109116 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
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 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Class A Common stock | |
Security Exchange Name | NYSE | |
Class A common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 60,868,215 | |
Class B common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 14,927,613 | |
Class U common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 9,352,729 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 149,987 | $ 119,162 |
Marketable securities | 15,745 | 27,988 |
Restricted cash | 749 | 749 |
Trade receivables, (including related parties of $6,534 and $6,172) net of allowance for doubtful accounts of $4,757 and $3,790 | 132,149 | 142,004 |
Assets held for sale | 6,138 | 2,141 |
Prepaid expenses and other current assets (including related parties of $274 and $274) | 18,418 | 18,021 |
Total current assets | 323,186 | 310,065 |
Property and equipment, net of accumulated depreciation of $192,182 and $191,183 | 69,737 | 72,004 |
Intangible assets subject to amortization, net of accumulated amortization of $105,578 and $103,752 (including related parties of $5,563 and $5,869) | 47,587 | 49,412 |
Intangible assets not subject to amortization | 211,753 | 216,653 |
Goodwill | 58,043 | 58,043 |
Operating leases right of use asset | 34,276 | 33,525 |
Other assets | 7,586 | 7,643 |
Total assets | 752,168 | 747,345 |
Current liabilities | ||
Current maturities of long-term debt | 3,000 | 3,000 |
Accounts payable and accrued expenses (including related parties of $2,042 and $2,087) | 124,369 | 126,849 |
Operating lease liabilities | 7,510 | 7,290 |
Total current liabilities | 134,879 | 137,139 |
Long-term debt, less current maturities, net of unamortized debt issuance costs of $1,689 and $1,796 | 209,811 | 210,454 |
Long-term operating lease liabilities | 32,015 | 31,775 |
Other long-term liabilities | 3,616 | 3,732 |
Deferred income taxes | 56,306 | 54,980 |
Total liabilities | 436,627 | 438,080 |
Commitments and contingencies (note 6) | ||
Redeemable noncontrolling interest | 34,858 | 33,285 |
Stockholders' equity | ||
Additional paid-in capital | 827,749 | 828,813 |
Accumulated deficit | (546,357) | (551,786) |
Accumulated other comprehensive income (loss) | (718) | (1,056) |
Total stockholders' equity | 280,683 | 275,980 |
Total liabilities and stockholders' equity | 752,168 | 747,345 |
Class A common stock | ||
Stockholders' equity | ||
Common stock | 6 | 6 |
Class B common stock | ||
Stockholders' equity | ||
Common stock | 2 | 2 |
Class U common stock | ||
Stockholders' equity | ||
Common stock | $ 1 | $ 1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Trade receivables, related parties | $ 6,534 | $ 6,172 |
Trade receivables, allowance for doubtful accounts | 4,757 | 3,790 |
Prepaid expenses and other current assets | 18,418 | 18,021 |
Property and equipment, accumulated depreciation | 192,182 | 191,183 |
Accumulated amortization of Intangible assets | 105,578 | 103,752 |
Intangible assets subject to amortization, net | 47,587 | 49,412 |
Accounts payable and accrued expenses | 124,369 | 126,849 |
Unamortized debt issuance costs | 1,689 | 1,796 |
Related Parties | ||
Prepaid expenses and other current assets | 274 | 274 |
Intangible assets subject to amortization, net | 5,563 | 5,869 |
Accounts payable and accrued expenses | $ 2,042 | $ 2,087 |
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 | 60,765,450 | 60,759,405 |
Common stock, shares outstanding | 60,765,450 | 60,759,405 |
Class B common stock | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 14,927,613 | 14,927,613 |
Common stock, shares outstanding | 14,927,613 | 14,927,613 |
Class U common stock | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 9,352,729 | 9,352,729 |
Common stock, shares outstanding | 9,352,729 | 9,352,729 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net Revenue | $ 148,880 | $ 64,249 |
Expenses: | ||
Direct operating expenses (including related parties of $1,937 and $2,219) (including non-cash stock-based compensation of $316 and $131) | 26,561 | 26,679 |
Selling, general and administrative expenses | 13,853 | 13,591 |
Corporate expenses (including non-cash stock-based compensation of $755 and $658) | 7,158 | 6,840 |
Depreciation and amortization (includes direct operating of $3,843 and $3,131; selling, general and administrative of $1,153 and $1,208; and corporate of $188 and $173) (including related parties of $307 and $307) | 5,184 | 4,512 |
Impairment charge | 1,326 | 39,835 |
Foreign currency (gain) loss | 586 | 1,508 |
Other operating (gain) loss | (1,913) | (836) |
Operating income (loss) | 11,369 | (35,227) |
Interest expense | (1,717) | (2,680) |
Interest income | 140 | 624 |
Dividend income | 2 | 23 |
Income (loss) before income taxes | 9,794 | (37,260) |
Income tax benefit (expense) | (2,792) | 1,668 |
Net income (loss) | 7,002 | (35,592) |
Net (income) loss attributable to redeemable noncontrolling interest | (1,573) | |
Net income (loss) attributable to common stockholders | $ 5,429 | $ (35,592) |
Basic and diluted earnings per share: | ||
Net income (loss) per share attributable to common stockholders, basic and diluted | $ 0.06 | $ (0.42) |
Cash dividends declared per common share | $ 0.03 | $ 0.05 |
Weighted average common shares outstanding, basic | 85,041,628 | 84,317,767 |
Weighted average common shares outstanding, diluted | 86,986,581 | 84,317,767 |
Digital | ||
Expenses: | ||
Cost of revenue | $ 84,756 | $ 7,347 |
Direct operating expenses (including related parties of $1,937 and $2,219) (including non-cash stock-based compensation of $316 and $131) | 4,901 | 3,193 |
Selling, general and administrative expenses | 5,949 | 3,671 |
Depreciation and amortization (includes direct operating of $3,843 and $3,131; selling, general and administrative of $1,153 and $1,208; and corporate of $188 and $173) (including related parties of $307 and $307) | $ 1,581 | $ 1,150 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Direct operating expenses | $ 26,561 | $ 26,679 |
Non-cash stock-based compensation | 1,071 | 789 |
Depreciation and amortization | 5,184 | 4,512 |
Related Parties | ||
Direct operating expenses | 1,937 | 2,219 |
Depreciation and amortization | 307 | 307 |
Direct Operating Expenses | ||
Non-cash stock-based compensation | 316 | 131 |
Depreciation and amortization | 3,843 | 3,131 |
Corporate Expenses | ||
Non-cash stock-based compensation | 755 | 658 |
Depreciation and amortization | 188 | 173 |
Selling, General and Administrative Expenses | ||
Depreciation and amortization | $ 1,153 | $ 1,208 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income (loss) | $ 7,002 | $ (35,592) |
Other comprehensive income (loss), net of tax: | ||
Change in foreign currency translation | 407 | (166) |
Change in fair value of available for sale securities | (69) | (223) |
Total other comprehensive income (loss) | 338 | (389) |
Comprehensive income (loss) | 7,340 | (35,981) |
Comprehensive (income) loss attributable to redeemable noncontrolling interests | (1,573) | |
Comprehensive income (loss) attributable to common stockholders | $ 5,767 | $ (35,981) |
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, 2019 | $ 288,172 | $ 6 | $ 2 | $ 1 | $ 836,170 | $ (547,876) | $ (131) | ||||
Balance, Beginning, Shares at Dec. 31, 2019 | 60,074,698 | 14,927,613 | 9,352,729 | ||||||||
Stock-based compensation expense | 789 | 789 | |||||||||
Repurchase of Class A common stock | (525) | (525) | |||||||||
Repurchase of Class A common stock | (259,500) | 259,500 | |||||||||
Retirement of treasury stock | (259,500) | ||||||||||
Dividends paid | (4,218) | (4,218) | |||||||||
Change in fair value of marketable securities | (223) | (223) | |||||||||
Foreign currency translation gain (loss) | (166) | (166) | |||||||||
Net income (loss) attributable to common stockholders | (35,592) | (35,592) | |||||||||
Balance, Ending at Mar. 31, 2020 | 248,237 | $ 6 | $ 2 | $ 1 | 832,216 | (583,468) | (520) | ||||
Balance, Ending, Shares at Mar. 31, 2020 | 59,815,198 | 14,927,613 | 9,352,729 | ||||||||
Balance, Beginning at Dec. 31, 2020 | 275,980 | $ 6 | $ 2 | $ 1 | 828,813 | (551,786) | (1,056) | ||||
Balance, Beginning, Shares at Dec. 31, 2020 | 60,759,405 | 14,927,613 | 9,352,729 | 60,759,405 | 14,927,613 | 9,352,729 | |||||
Issuance of common stock upon exercise of stock options or awards of restricted stock units | (9) | (9) | |||||||||
Issuance of common stock upon exercise of stock options or awards of restricted stock units, Shares | 6,045 | ||||||||||
Stock-based compensation expense | 1,071 | 1,071 | |||||||||
Repurchase of Class A common stock | 0 | ||||||||||
Dividends paid | (2,126) | (2,126) | |||||||||
Change in fair value of marketable securities | (69) | (69) | |||||||||
Foreign currency translation gain (loss) | 407 | 407 | |||||||||
Net income (loss) attributable to common stockholders | 5,429 | 5,429 | |||||||||
Balance, Ending at Mar. 31, 2021 | $ 280,683 | $ 6 | $ 2 | $ 1 | $ 827,749 | $ (546,357) | $ (718) | ||||
Balance, Ending, Shares at Mar. 31, 2021 | 60,765,450 | 14,927,613 | 9,352,729 | 60,765,450 | 14,927,613 | 9,352,729 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 7,002 | $ (35,592) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 5,184 | 4,512 |
Impairment charge | 1,326 | 39,835 |
Deferred income taxes | 2,987 | (1,813) |
Non-cash interest | 139 | 169 |
Amortization of syndication contracts | 119 | 130 |
Payments on syndication contracts | (124) | (130) |
Non-cash stock-based compensation | 1,071 | 789 |
Changes in assets and liabilities: | ||
(Increase) decrease in accounts receivable | 9,927 | 7,482 |
(Increase) decrease in prepaid expenses and other assets | 1,177 | 1,026 |
Increase (decrease) in accounts payable, accrued expenses and other liabilities | (5,356) | (4,394) |
Net cash provided by operating activities | 23,452 | 12,014 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (1,838) | (2,671) |
Purchases of intangible assets | (155) | |
Proceeds from marketable securities | 12,120 | 16,617 |
Net cash provided by (used in) investing activities | 10,282 | 13,791 |
Cash flows from financing activities: | ||
Tax payments related to shares withheld for share-based compensation plans | (9) | |
Payments on long-term debt | (750) | (750) |
Dividends paid | (2,126) | (4,218) |
Repurchase of Class A common stock | (525) | |
Net cash used in financing activities | (2,885) | (5,493) |
Effect of exchange rates on cash, cash equivalents and restricted cash | (24) | 77 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 30,825 | 20,389 |
Cash, cash equivalents and restricted cash: | ||
Beginning | 119,911 | 33,857 |
Ending | 150,736 | 54,246 |
Cash payments for: | ||
Interest | 1,578 | 2,511 |
Income taxes | (195) | 145 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Capital expenditures financed through accounts payable, accrued expenses and other liabilities | $ 837 | $ 1,770 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | 1. BASIS OF PRESENTATION Presentation The consolidated financial statements included herein have been prepared by Entravision Communications Corporation (the “Company”), pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted pursuant to such rules and regulations. These consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2020 included in the Company’s 2020 10-K for the year ended December 31, 2020. The unaudited information contained herein has been prepared on the same basis as the Company’s audited consolidated financial statements and, in the opinion of the Company’s management, includes all adjustments (consisting of only normal recurring adjustments) necessary for a fair presentation of the information for the periods presented. The interim results presented herein are not necessarily indicative of the results of operations that may be expected for the full fiscal year ending December 31, 2021 or any other future period. |
The Company and Significant Acc
The Company and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
The Company and Significant Accounting Policies | 2. THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES Nature of Business 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 media and 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 The COVID-19 pandemic had a more muted impact on our business during the quarter ended March 31, 2021, compared to previous quarters since the pandemic began in early 2020. Subject to the extent and duration of the pandemic and the continuing economic crisis that has resulted from the pandemic, the Company anticipates that the pandemic will continue to have a diminishing effect on its business, from both an operational and financial perspective, in future periods. Nonetheless, the Company continues to experience cancellations of advertising and a decrease in new advertising placements in its television segment and especially in its radio segment, continuing a trend the Company had begun to experience since the beginning of the pandemic in early 2020, although the Company experienced this decrease at a slower rate during the quarter ended March 31, 2021. The impact on the Company’s radio segment continues to be greater than that on its television segment because radio audiences have declined at a greater rate, and have been maintaining at a lower level, as a result of a decline in the number of people commuting to work or driving in general since the beginning of the pandemic, despite a general easing of lockdown, shelter-in-place, stay-at-home or similar orders. At least some of these changes in personal behavior may endure regardless of when and how the pandemic ends, although any such longer-term changes cannot be known at present. To In order to preserve cash during this period, the Company instituted certain cost reduction measures that are currently in effect. On March 26, 2020, the Company suspended repurchases under its share repurchase program. 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 continue to do so in future periods. Other cost reduction measures that the Company instituted during 2020 wer e restored to original levels by the end of 2020. 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 the Company may believe are appropriate at a future date . Additionally, the Company elected to defer the employer portion of the social security payroll tax (6.2%) as provided in the Coronavirus Aid, Relief and Economic Security Act of 2020, commonly known as the CARES Act. The deferral was 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 is paid by December 31, 2022. 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. Restricted Cash As of March 31, 2021 and December 31, 2020, the Company’s balance sheet includes $0.7 million in restricted cash, which was deposited into a separate account as collateral for the Company’s letters of credit. Related Party Substantially all of the Company’s 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. During the three-month periods ended March 31, 2021 and 2020, the amount the Company paid Univision in this capacity was $1.9 million and $2.2 million, respectively. 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. 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, (“MVPDs”). As of March 31, 2021, the amount due to the Company from Univision was $6.5 million related to the agreements for the carriage of its Univision and UniMás-affiliated television station signals. During each of the three-month periods ended March 31, 2021 and 2020, retransmission consent revenue accounted for approximately $9.6 million, of which $6.7 million and $7.0 million, respectively, relate to the Univision proxy agreement. The term of the proxy agreement extends with respect to any MVPD for the length of the term of any retransmission consent agreement in effect before the expiration of the proxy agreement. Univision currently owns approximately 11% of the Company’s common stock on a fully-converted basis. The 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 Federal Communications Commission (“FCC”) license with respect to television stations which are affiliates of Univision, among other things. Stock-Based Compensation The Company measures all stock-based awards using a fair value method and recognizes the related stock-based compensation expense in the consolidated financial statements over the requisite service period. As stock-based compensation expense recognized in the Company’s consolidated financial statements is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. Stock-based compensation expense related to grants of stock options and restricted stock units was $1.1 million and $0.8 million for the three-month periods ended March 31, 2021 and 2020, respectively. Stock Options Stock-based compensation expense related to stock options is based on the fair value on the date of grant using the Black-Scholes option pricing model and is amortized over the vesting period, generally between 1 to 4 years. For the three-month periods ended March 31, 2021 and 2020, there was no stock-based compensation expense related to grants of stock options. All grants of stock options have been fully expensed. Restricted Stock Units Stock-based compensation expense related to restricted stock units is based on the fair value of the Company’s stock price on the date of grant and is amortized over the vesting period, generally between 1 to 4 years. As of March 31, 2021, there was approximately $4.7 million of total unrecognized compensation expense related to grants of restricted stock units that is expected to be recognized over a weighted-average period of 1.6 years. Income (Loss) Per Share The following table illustrates the reconciliation of the basic and diluted income (loss) per share computations required by Accounting Standards Codification (ASC) 260-10, “Earnings per Share” (in thousands, except share and per share data): Three-Month Period Ended March 31, 2021 2020 Basic earnings per share: Numerator: Net income (loss) attributable to common stockholders $ 5,429 $ (35,592 ) Denominator: Weighted average common shares outstanding 85,041,628 84,317,767 Per share: Net income (loss) per share attributable to common stockholders $ 0.06 $ (0.42 ) Diluted earnings per share: Numerator: Net income (loss) attributable to common stockholders $ 5,429 $ (35,592 ) Denominator: Weighted average common shares outstanding 85,041,628 84,317,767 Dilutive securities: Stock options and restricted stock units 1,944,953 - Diluted shares outstanding 86,986,581 84,317,767 Per share: Net income (loss) per share attributable to common stockholders $ 0.06 $ (0.42 ) Basic income (loss) per share is computed as net income (loss) divided by the weighted average number of shares outstanding for the period. Diluted income (loss) per share reflects the potential dilution, if any, that could occur from shares issuable through stock options and restricted stock awards. For the three-month period ended March 31, 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 659,828 equivalent shares of dilutive securities for the three-month period ended March 31, 2020. 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. As noted in the Company’s 2020 10-K, the Company recorded impairment charges of goodwill in its digital reporting unit totaling $0.8 million during the year ended December 31, 2020. In addition, the Company recorded impairment charges of FCC licenses in its television and radio reporting units in the amount of $23.5 million and $9.0 million, respectively, during the year ended December 31, 2020. In addition, the Company recorded impairment charges related to Intangibles subject to amortization of $5.3 million, and property and equipment of $1.5 million, respectively, during the year ended December 31, 2020. The Company determined there were no triggering events during the first quarter of 2021. The carrying amount of intangible assets not subject to amortization for each of the Company’s operating segments for the three-month period ended March 31, 2021 is as follows (in thousands): December 31, 2020 Impairment Transfer to Assets Held for Sale March 31, 2021 Television $ 130,274 $ - $ - $ 130,274 Radio 86,379 (1,326 ) (3,574 ) 81,479 Digital - - - - Consolidated $ 216,653 $ (1,326 ) $ (3,574 ) $ 211,753 The Company recorded an impairment charge of $1.3 million related to its assets held for sale. See the further discussion under “Assets Held for Sale” below. 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. The share repurchase program may be suspended or discontinued at any time without prior notice 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. During the three-month period ended March 31, 2021, the Company did not repurchase any shares of Class A common stock. As of March 31, 2021, 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 March 31, 2021. 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%. 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. On April 30, 2019, the Company entered into an amendment to the 2017 Credit Agreement, which became effective on May 1, 2019. 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 for the year ended December 31, 2020 and other information within 90 days after the end of the fiscal year ended December 31, 2020, and therefore the Company did not satisfy the requirement of this covenant in the 2017 Credit Agreement. However, the 2017 Credit Agreement provides an additional period of 30 days for the Company to satisfy such covenant. On April 12, 2021, the Company filed its 2020 10-K with the SEC. The Company believes it and 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. The carrying amount of the Term Loan B Facility as of March 31, 2021 was was approximately Fair Value Measurements The Company measures certain financial assets and liabilities at fair value on a recurring basis. Fair value is the price the Company would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. ASC 820, “Fair Value Measurements and Disclosures”, defines and establishes a framework for measuring fair value and expands disclosures about fair value measurements. In accordance with ASC 820, the Company has categorized its financial assets and liabilities, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy as set forth below. Level 1 – Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the company has the ability to access at the measurement date. Level 2 – Assets and liabilities whose values are based on quoted prices for similar attributes in active markets; quoted prices in markets where trading occurs infrequently; and inputs other than quoted prices that are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 – Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis in the Unaudited Consolidated Balance Sheets (in millions): March 31, 2021 Total Fair Value and Carrying Value on Balance Fair Value Measurement Category (in millions) Sheet Level 1 Level 2 Level 3 Assets: Money market account $ 72.4 $ - $ 72.4 $ - Certificates of deposit $ 0.7 $ - $ 0.7 $ - Corporate bonds $ 15.1 $ - $ 15.1 $ - December 31, 2020 Total Fair Value and Carrying Value on Balance Fair Value Measurement Category Sheet Level 1 Level 2 Level 3 Assets: Money market account $ 59.9 $ - $ 59.9 $ - Certificates of deposit $ 2.8 $ - $ 2.8 $ - Corporate bonds $ 25.2 $ - $ 25.2 $ - As of March 31, 2021, 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 the majority of corporate bonds are investment grade. The Company’s available for sale securities are comprised of certificates of deposit and bonds. These securities are valued using quoted prices for similar attributes in active markets (Level 2). Since these investments are classified as available for sale, they are recorded at their fair market value within Cash and cash equivalents and Marketable securities in the Unaudited Consolidated Balance Sheets and their unrealized gains or losses are included in other comprehensive income. As of March 31, 2021, 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 $ 680 $ 4 $ 14,915 $ 146 Due after one year through five years - - - - Total $ 680 $ 4 $ 14,915 $ 146 The Company’s available for sale debt securities are considered for credit losses under the guidance of Accounting Standards Update (“ASU”) 2016-13, Financial Instruments—Credit Losses (Topic 326) Included in interest income for the three-month period ended March 31, 2021 was interest income related to the Company’s available for sale securities of $0.1 million. Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) includes foreign currency translation adjustments and changes in the fair value of available for sale securities. The following table provides a roll-forward of accumulated other comprehensive income (loss) for the three-month periods ended March 31, 2021 (in millions): Foreign Currency Translation Marketable Securities Total Accumulated other comprehensive income (loss) as of December 31, 2020 $ (1.4 ) $ 0.4 $ (1.0 ) Other comprehensive income (loss) 0.4 (0.1 ) 0.3 Income tax (expense) benefit - - - Other comprehensive income (loss), net of tax 0.4 (0.1 ) 0.3 Accumulated other comprehensive income (loss) as of March 31, 2021 (1.0 ) 0.3 (0.7 ) Foreign Currency The Company’s reporting currency is the U.S. dollar. All transactions initiated in foreign currencies are translated into U.S. dollars in accordance with ASC Topic 830, “Foreign Currency Matters” and the related rate fluctuation on transactions is included in the consolidated statements of operations. For foreign operations with the local currency as the functional currency, assets and liabilities are translated from the local currencies into U.S. dollars at the exchange rate prevailing at the balance sheet date and equity is translated at historical rates. Revenues and expenses are translated at the average exchange rate for the period. Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included in determining comprehensive (income) loss. Based on recent data reported by the International Monetary Fund, Argentina has been identified as a country with a highly inflationary economy. According to U.S. GAAP, a registrant should apply highly inflationary accounting in the first reporting period after such determination. Therefore, the Company transitioned the accounting for its Argentine operations to highly inflationary status as of July 1, 2018 and, commencing that date, changed the functional currency from the Argentine peso to the U.S. dollar. Cost of Revenue Cost of revenue related to the Company’s digital segment consists primarily of the costs of online media acquired from third-party publishers. Assets Held For Sale Assets are classified as held for sale when the carrying value is expected to be recovered through a sale rather than through their continued use and all of the necessary classification criteria have been met. Assets held for sale are recorded at the lower of their carrying value or estimated fair value less selling costs and classified as current assets. Depreciation is not recorded on assets classified as held for sale. On March 30, 2020, the Company entered into an agreement to sell a building and related improvements in the Houston, Texas area for approximately $5.4 million. The transaction met the criteria for classification as assets held for sale and the carrying value of $0.2 million is presented as Assets Held for Sale in the consolidated balance sheet as of March 31, 2021. Due to certain government approval delays resulting from the COVID-19 pandemic, the Company anticipates that the transaction will close in the second half of 2021 . During the first quarter of 2020, the Company listed for sale a building and related improvements in the Laredo, Texas area for approximately $2.9 million. The transaction met the criteria for classification as assets held for sale and the carrying value of $2.0 million is presented as Assets Held for Sale in the consolidated balance sheet as of March 31, 2021 During the first quarter of 2021, the Company The transaction as of March 31, 2021 Recent Accounting Pronouncements 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 December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenues | 3. REVENUES Revenue Recognition Revenues are recognized when control of the promised services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. Broadcast Advertising. Television and radio revenue related to the sale of advertising is recognized at the time of broadcast. Broadcast advertising rates are fixed based on each medium’s ability to attract audiences in demographic groups targeted by advertisers and rates can vary based on the time of day and ratings of the programming airing in that day part. Digital Advertising. Revenue from digital advertising primarily consists of two types: • 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. • 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 advertisement, 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 u sage r ights agreements are 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 has relinquished its 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 for the three-month periods ended (in thousands): Three-Month Period Ended March 31, 2021 2020 Broadcast advertising $ 33,675 $ 38,728 Digital advertising 101,482 13,331 Spectrum usage rights 2,844 1,356 Retransmission consent 9,647 9,580 Other 1,232 1,254 Total revenue $ 148,880 $ 64,249 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 station’s DMA are referred to as national revenue. The following table further disaggregates the Company’s broadcast advertising revenue by sales channel for the three-month periods ended (in thousands): Three-Month Period Ended March 31, 2021 2020 Local direct $ 5,240 $ 5,843 Local agency 13,188 13,566 National agency 15,247 19,319 Total revenue $ 33,675 $ 38,728 Deferred Revenue The Company records deferred revenue, which are included in accounts payable and accrued expenses in the accompanying consolidated balance sheets, when cash payments are received or due in advance of the Company’s performance, including amounts which are refundable. The change in the deferred revenue balance for the three-month period ended March 31, 2021 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, 2020. 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, 2020 Increase Decrease * March 31, 2021 Deferred revenue $ 3,127 3,598 (3,127) $ 3,598 * The amount reflects revenue that has been recorded in the three-month period ended March 31, 2021. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | 4. LEASES The Company’s leases are considered operating leases and primarily consist of real estate such as office space, broadcasting towers, land and land easements. 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 on 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 has 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 following table summarizes the expected future payments related to lease liabilities as of March 31, 2021: (in thousands) Remainder of 2021 $ 7,300 2022 8,820 2023 7,148 2024 5,986 2025 5,636 2026 and thereafter 15,675 Total minimum payments $ 50,565 Less amounts representing interest (11,040 ) Present value of minimum lease payments 39,525 Less current operating lease liabilities (7,510 ) Long-term operating lease liabilities $ 32,015 The weighted average remaining lease term and the weighted average discount rate used to calculate the Company’s lease liabilities as of March 31, 2021 were 9.7 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 March 31, 2020 were 11.1 years and 6.3%, respectively. The following table summarizes lease payments and supplemental non-cash disclosures: Three-Month Period Ended March 31, (in thousands) 2021 2020 Cash paid for amounts included in lease liabilities: Operating cash flows from operating leases $ 2,756 $ 2,888 Non-cash additions to operating lease assets $ 2,683 $ - The following table summarizes the components of lease expense: Three-Month Period Three-Month Period Ended March 31, Ended March 31, (in thousands) 2021 2020 Operating lease cost $ 2,153 $ 2,673 Variable lease cost 128 297 Short-term lease cost 439 218 Total lease cost $ 2,720 $ 3,188 For the three-month period ended March 31, 2021, lease cost of $1.4 million, $1.2 million and $0.1 million, were recorded to direct operating expenses, selling, general and administrative expenses and corporate expenses, respectively. For the three-month period ended March 31, 2020, lease cost of $1.6 million, $1.4 million and $0.2 million, were recorded to direct operating expenses, selling, general and administrative expenses and corporate expenses, respectively. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | 5. SEGMENT INFORMATION The Company’s management has determined that the Company operates in three reportable segments as of March 31, 2021, based upon the type of advertising medium, which segments are television, digital and radio. 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 As of March 31, 2021, 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 As of March 31, 2021, the Company owns and operates 48 radio stations (38 FM and 10 AM) located 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 100 markets across the United States. Separate financial data for each of the Company’s operating segments are provided below. Segment operating profit (loss) is defined as operating profit (loss) before corporate expenses, change in fair value contingent consideration, impairment charge, foreign currency (gain) loss and other operating (gain) loss. The Company generated 65% and 14% of its revenue outside the United States during the three-month periods ended March 31, 2021 and 2020, respectively. The Company evaluates the performance of its operating segments based on the following (in thousands): Three-Month Period Ended March 31, % 2021 2020 Change Net revenue Television $ 36,091 $ 39,199 (8 )% Digital 101,482 13,331 661 % Radio 11,307 11,719 (4 )% Consolidated 148,880 64,249 132 % Cost of revenue - digital 84,756 7,347 * Direct operating expenses Television 14,969 15,825 (5 )% Digital 4,901 3,193 53 % Radio 6,691 7,661 (13 )% Consolidated 26,561 26,679 (0 )% Selling, general and administrative expenses Television 4,915 5,932 (17 )% Digital 5,949 3,671 62 % Radio 2,989 3,988 (25 )% Consolidated 13,853 13,591 2 % Depreciation and amortization Television 3,216 2,875 12 % Digital 1,581 1,150 37 % Radio 387 487 (21 )% Consolidated 5,184 4,512 15 % Segment operating profit (loss) Television 12,991 14,567 (11 )% Digital 4,295 (2,030 ) * Radio 1,240 (417 ) * Consolidated 18,526 12,120 53 % Corporate expenses 7,158 6,840 5 % Impairment charge 1,326 39,835 (97 )% Foreign currency (gain) loss 586 1,508 (61 )% Other operating (gain) loss (1,913 ) (836 ) 129 % Operating income (loss) 11,369 (35,227 ) * Interest expense $ (1,717 ) $ (2,680 ) (36 )% Interest income 140 624 (78 )% Dividend income 2 23 (91 )% Income (loss) before income taxes 9,794 (37,260 ) * Capital expenditures Television $ 1,031 $ 3,182 Digital 336 298 Radio 146 196 Consolidated $ 1,513 $ 3,676 March 31, December 31, Total assets 2021 2020 Television 434,758 425,899 Digital 196,551 196,020 Radio 120,859 125,426 Consolidated $ 752,168 $ 747,345 * Percentage not meaningful. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 6. COMMITMENTS AND CONTINGENCIES The Company is subject to various outstanding claims and other legal proceedings that may arise in the ordinary course of business. In the opinion of management, any liability of the Company that may arise out of or with respect to these matters will not materially adversely affect the financial position, results of operations or cash flows of the Company. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | 7. ACQUISITIONS 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) the remaining 49% of the issued and outstanding shares of Cisneros Interactive stock 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. 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) the remaining 49% of the issued and outstanding shares of Cisneros Interactive stock 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 because 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 fair value of the redeemable noncontrolling interest which includes the Put and Call Agreement recognized on the acquisition date was $30.8 million. The table below presents the reconciliation of changes in redeemable noncontrolling interests (unaudited; in thousands): Three-Month Period Ended March 31, 2021 2020 Beginning balance $ 33,285 $ - Net income (loss) attributable to redeemable noncontrolling interest 1,573 - Ending balance $ 34,858 $ - 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 ) 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 three-month period ended March 31, 2021, Cisneros Interactive generated net revenue and net income of $88.5 million and $3.2 million, respectively. The goodwill, which is not expected to be deductible for tax purposes, is assigned to the Company’s digital segment and is attributable to Cisneros Interactive’s workforce and expected synergies from combining Cisneros Interactive’s operations with those of the Company. The following unaudited pro forma information for the three-month periods ended March 31, 2020 has been prepared to give effect to the Company’s acquisition of a majority interest in Cisneros Interactive as if the acquisition had occurred on January 1, 2020. 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. Three-Month Period Ended March 31, 2020 Pro Forma: Total revenue $ 104,468 Net income (loss) (34,348 ) Net income (loss) attributable to redeemable noncontrolling interest (610 ) Net income (loss) attributable to common stockholders $ (34,958 ) Basic and diluted earnings per share: Net income (loss) per share, attributable to common stockholders, basic and diluted $ (0.41 ) Weighted average common shares outstanding, basic and diluted 84,317,767 |
The Company and Significant A_2
The Company and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
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 The COVID-19 pandemic had a more muted impact on our business during the quarter ended March 31, 2021, compared to previous quarters since the pandemic began in early 2020. Subject to the extent and duration of the pandemic and the continuing economic crisis that has resulted from the pandemic, the Company anticipates that the pandemic will continue to have a diminishing effect on its business, from both an operational and financial perspective, in future periods. Nonetheless, the Company continues to experience cancellations of advertising and a decrease in new advertising placements in its television segment and especially in its radio segment, continuing a trend the Company had begun to experience since the beginning of the pandemic in early 2020, although the Company experienced this decrease at a slower rate during the quarter ended March 31, 2021. The impact on the Company’s radio segment continues to be greater than that on its television segment because radio audiences have declined at a greater rate, and have been maintaining at a lower level, as a result of a decline in the number of people commuting to work or driving in general since the beginning of the pandemic, despite a general easing of lockdown, shelter-in-place, stay-at-home or similar orders. At least some of these changes in personal behavior may endure regardless of when and how the pandemic ends, although any such longer-term changes cannot be known at present. To In order to preserve cash during this period, the Company instituted certain cost reduction measures that are currently in effect. On March 26, 2020, the Company suspended repurchases under its share repurchase program. 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 continue to do so in future periods. Other cost reduction measures that the Company instituted during 2020 wer e restored to original levels by the end of 2020. 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 the Company may believe are appropriate at a future date . Additionally, the Company elected to defer the employer portion of the social security payroll tax (6.2%) as provided in the Coronavirus Aid, Relief and Economic Security Act of 2020, commonly known as the CARES Act. The deferral was 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 is paid by December 31, 2022. 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. |
Restricted Cash | Restricted Cash As of March 31, 2021 and December 31, 2020, the Company’s balance sheet includes $0.7 million in restricted cash, which was deposited into a separate account as collateral for the Company’s letters of credit. |
Related Party | Related Party Substantially all of the Company’s 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. During the three-month periods ended March 31, 2021 and 2020, the amount the Company paid Univision in this capacity was $1.9 million and $2.2 million, respectively. 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. 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, (“MVPDs”). As of March 31, 2021, the amount due to the Company from Univision was $6.5 million related to the agreements for the carriage of its Univision and UniMás-affiliated television station signals. During each of the three-month periods ended March 31, 2021 and 2020, retransmission consent revenue accounted for approximately $9.6 million, of which $6.7 million and $7.0 million, respectively, relate to the Univision proxy agreement. The term of the proxy agreement extends with respect to any MVPD for the length of the term of any retransmission consent agreement in effect before the expiration of the proxy agreement. Univision currently owns approximately 11% of the Company’s common stock on a fully-converted basis. The 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 Federal Communications Commission (“FCC”) license with respect to television stations which are affiliates of Univision, among other things. |
Stock-Based Compensation | Stock-Based Compensation The Company measures all stock-based awards using a fair value method and recognizes the related stock-based compensation expense in the consolidated financial statements over the requisite service period. As stock-based compensation expense recognized in the Company’s consolidated financial statements is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. Stock-based compensation expense related to grants of stock options and restricted stock units was $1.1 million and $0.8 million for the three-month periods ended March 31, 2021 and 2020, respectively. Stock Options Stock-based compensation expense related to stock options is based on the fair value on the date of grant using the Black-Scholes option pricing model and is amortized over the vesting period, generally between 1 to 4 years. For the three-month periods ended March 31, 2021 and 2020, there was no stock-based compensation expense related to grants of stock options. All grants of stock options have been fully expensed. Restricted Stock Units Stock-based compensation expense related to restricted stock units is based on the fair value of the Company’s stock price on the date of grant and is amortized over the vesting period, generally between 1 to 4 years. As of March 31, 2021, there was approximately $4.7 million of total unrecognized compensation expense related to grants of restricted stock units that is expected to be recognized over a weighted-average period of 1.6 years. |
Income (Loss) Per Share | Income (Loss) Per Share The following table illustrates the reconciliation of the basic and diluted income (loss) per share computations required by Accounting Standards Codification (ASC) 260-10, “Earnings per Share” (in thousands, except share and per share data): Three-Month Period Ended March 31, 2021 2020 Basic earnings per share: Numerator: Net income (loss) attributable to common stockholders $ 5,429 $ (35,592 ) Denominator: Weighted average common shares outstanding 85,041,628 84,317,767 Per share: Net income (loss) per share attributable to common stockholders $ 0.06 $ (0.42 ) Diluted earnings per share: Numerator: Net income (loss) attributable to common stockholders $ 5,429 $ (35,592 ) Denominator: Weighted average common shares outstanding 85,041,628 84,317,767 Dilutive securities: Stock options and restricted stock units 1,944,953 - Diluted shares outstanding 86,986,581 84,317,767 Per share: Net income (loss) per share attributable to common stockholders $ 0.06 $ (0.42 ) Basic income (loss) per share is computed as net income (loss) divided by the weighted average number of shares outstanding for the period. Diluted income (loss) per share reflects the potential dilution, if any, that could occur from shares issuable through stock options and restricted stock awards. For the three-month period ended March 31, 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 659,828 equivalent shares of dilutive securities for the three-month period ended March 31, 2020. |
Impairment | 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. As noted in the Company’s 2020 10-K, the Company recorded impairment charges of goodwill in its digital reporting unit totaling $0.8 million during the year ended December 31, 2020. In addition, the Company recorded impairment charges of FCC licenses in its television and radio reporting units in the amount of $23.5 million and $9.0 million, respectively, during the year ended December 31, 2020. In addition, the Company recorded impairment charges related to Intangibles subject to amortization of $5.3 million, and property and equipment of $1.5 million, respectively, during the year ended December 31, 2020. The Company determined there were no triggering events during the first quarter of 2021. The carrying amount of intangible assets not subject to amortization for each of the Company’s operating segments for the three-month period ended March 31, 2021 is as follows (in thousands): December 31, 2020 Impairment Transfer to Assets Held for Sale March 31, 2021 Television $ 130,274 $ - $ - $ 130,274 Radio 86,379 (1,326 ) (3,574 ) 81,479 Digital - - - - Consolidated $ 216,653 $ (1,326 ) $ (3,574 ) $ 211,753 The Company recorded an impairment charge of $1.3 million related to its assets held for sale. See the further discussion under “Assets Held for Sale” below. |
Treasury Stock | Treasury Stock On July 13, 2017, the Board of Directors approved a share repurchase of up to $15.0 million of the Company’s outstanding 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. The share repurchase program may be suspended or discontinued at any time without prior notice 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. During the three-month period ended March 31, 2021, the Company did not repurchase any shares of Class A common stock. As of March 31, 2021, 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 March 31, 2021. |
2017 Credit Facility | 2017 Credit Facility On November 30, 2017 (the “Closing Date”), the Company entered into its 2017 Credit Facility pursuant to the 2017 Credit Agreement. The 2017 Credit Facility consists of a $300.0 million senior secured Term Loan B Facility (the “Term Loan B Facility”), which was drawn in full on the Closing Date. In addition, the 2017 Credit Facility provides that the Company may increase the aggregate principal amount of the 2017 Credit Facility by up to an additional $100.0 million plus the amount that would result in its first lien net leverage ratio (as such term is used in the 2017 Credit Agreement) not exceeding 4.0 to 1.0, subject to the Company satisfying certain conditions. Borrowings under the Term Loan B Facility were used on the Closing Date (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%. 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. On April 30, 2019, the Company entered into an amendment to the 2017 Credit Agreement, which became effective on May 1, 2019. 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 for the year ended December 31, 2020 and other information within 90 days after the end of the fiscal year ended December 31, 2020, and therefore the Company did not satisfy the requirement of this covenant in the 2017 Credit Agreement. However, the 2017 Credit Agreement provides an additional period of 30 days for the Company to satisfy such covenant. On April 12, 2021, the Company filed its 2020 10-K with the SEC. The Company believes it and 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. The carrying amount of the Term Loan B Facility as of March 31, 2021 was was approximately |
Fair Value Measurements | Fair Value Measurements The Company measures certain financial assets and liabilities at fair value on a recurring basis. Fair value is the price the Company would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. ASC 820, “Fair Value Measurements and Disclosures”, defines and establishes a framework for measuring fair value and expands disclosures about fair value measurements. In accordance with ASC 820, the Company has categorized its financial assets and liabilities, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy as set forth below. Level 1 – Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the company has the ability to access at the measurement date. Level 2 – Assets and liabilities whose values are based on quoted prices for similar attributes in active markets; quoted prices in markets where trading occurs infrequently; and inputs other than quoted prices that are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 – Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis in the Unaudited Consolidated Balance Sheets (in millions): March 31, 2021 Total Fair Value and Carrying Value on Balance Fair Value Measurement Category (in millions) Sheet Level 1 Level 2 Level 3 Assets: Money market account $ 72.4 $ - $ 72.4 $ - Certificates of deposit $ 0.7 $ - $ 0.7 $ - Corporate bonds $ 15.1 $ - $ 15.1 $ - December 31, 2020 Total Fair Value and Carrying Value on Balance Fair Value Measurement Category Sheet Level 1 Level 2 Level 3 Assets: Money market account $ 59.9 $ - $ 59.9 $ - Certificates of deposit $ 2.8 $ - $ 2.8 $ - Corporate bonds $ 25.2 $ - $ 25.2 $ - As of March 31, 2021, 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 the majority of corporate bonds are investment grade. The Company’s available for sale securities are comprised of certificates of deposit and bonds. These securities are valued using quoted prices for similar attributes in active markets (Level 2). Since these investments are classified as available for sale, they are recorded at their fair market value within Cash and cash equivalents and Marketable securities in the Unaudited Consolidated Balance Sheets and their unrealized gains or losses are included in other comprehensive income. As of March 31, 2021, 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 $ 680 $ 4 $ 14,915 $ 146 Due after one year through five years - - - - Total $ 680 $ 4 $ 14,915 $ 146 The Company’s available for sale debt securities are considered for credit losses under the guidance of Accounting Standards Update (“ASU”) 2016-13, Financial Instruments—Credit Losses (Topic 326) Included in interest income for the three-month period ended March 31, 2021 was interest income related to the Company’s available for sale securities of $0.1 million. |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) includes foreign currency translation adjustments and changes in the fair value of available for sale securities. The following table provides a roll-forward of accumulated other comprehensive income (loss) for the three-month periods ended March 31, 2021 (in millions): Foreign Currency Translation Marketable Securities Total Accumulated other comprehensive income (loss) as of December 31, 2020 $ (1.4 ) $ 0.4 $ (1.0 ) Other comprehensive income (loss) 0.4 (0.1 ) 0.3 Income tax (expense) benefit - - - Other comprehensive income (loss), net of tax 0.4 (0.1 ) 0.3 Accumulated other comprehensive income (loss) as of March 31, 2021 (1.0 ) 0.3 (0.7 ) |
Foreign Currency | Foreign Currency The Company’s reporting currency is the U.S. dollar. All transactions initiated in foreign currencies are translated into U.S. dollars in accordance with ASC Topic 830, “Foreign Currency Matters” and the related rate fluctuation on transactions is included in the consolidated statements of operations. For foreign operations with the local currency as the functional currency, assets and liabilities are translated from the local currencies into U.S. dollars at the exchange rate prevailing at the balance sheet date and equity is translated at historical rates. Revenues and expenses are translated at the average exchange rate for the period. Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included in determining comprehensive (income) loss. Based on recent data reported by the International Monetary Fund, Argentina has been identified as a country with a highly inflationary economy. According to U.S. GAAP, a registrant should apply highly inflationary accounting in the first reporting period after such determination. Therefore, the Company transitioned the accounting for its Argentine operations to highly inflationary status as of July 1, 2018 and, commencing that date, changed the functional currency from the Argentine peso to the U.S. dollar. |
Cost of Revenue | Cost of Revenue Cost of revenue related to the Company’s digital segment consists primarily of the costs of online media acquired from third-party publishers. |
Assets Held For Sale | Assets Held For Sale Assets are classified as held for sale when the carrying value is expected to be recovered through a sale rather than through their continued use and all of the necessary classification criteria have been met. Assets held for sale are recorded at the lower of their carrying value or estimated fair value less selling costs and classified as current assets. Depreciation is not recorded on assets classified as held for sale. On March 30, 2020, the Company entered into an agreement to sell a building and related improvements in the Houston, Texas area for approximately $5.4 million. The transaction met the criteria for classification as assets held for sale and the carrying value of $0.2 million is presented as Assets Held for Sale in the consolidated balance sheet as of March 31, 2021. Due to certain government approval delays resulting from the COVID-19 pandemic, the Company anticipates that the transaction will close in the second half of 2021 . During the first quarter of 2020, the Company listed for sale a building and related improvements in the Laredo, Texas area for approximately $2.9 million. The transaction met the criteria for classification as assets held for sale and the carrying value of $2.0 million is presented as Assets Held for Sale in the consolidated balance sheet as of March 31, 2021 During the first quarter of 2021, the Company The transaction as of March 31, 2021 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements 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 December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, |
The Company and Significant A_3
The Company and Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Reconciliation of Basic and Diluted Income (Loss) Per Share | The following table illustrates the reconciliation of the basic and diluted income (loss) per share computations required by Accounting Standards Codification (ASC) 260-10, “Earnings per Share” (in thousands, except share and per share data): Three-Month Period Ended March 31, 2021 2020 Basic earnings per share: Numerator: Net income (loss) attributable to common stockholders $ 5,429 $ (35,592 ) Denominator: Weighted average common shares outstanding 85,041,628 84,317,767 Per share: Net income (loss) per share attributable to common stockholders $ 0.06 $ (0.42 ) Diluted earnings per share: Numerator: Net income (loss) attributable to common stockholders $ 5,429 $ (35,592 ) Denominator: Weighted average common shares outstanding 85,041,628 84,317,767 Dilutive securities: Stock options and restricted stock units 1,944,953 - Diluted shares outstanding 86,986,581 84,317,767 Per share: Net income (loss) per share attributable to common stockholders $ 0.06 $ (0.42 ) |
Carrying Amount of Intangible Assets Not Subject to Amortization | The carrying amount of intangible assets not subject to amortization for each of the Company’s operating segments for the three-month period ended March 31, 2021 is as follows (in thousands): December 31, 2020 Impairment Transfer to Assets Held for Sale March 31, 2021 Television $ 130,274 $ - $ - $ 130,274 Radio 86,379 (1,326 ) (3,574 ) 81,479 Digital - - - - Consolidated $ 216,653 $ (1,326 ) $ (3,574 ) $ 211,753 |
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 Unaudited Consolidated Balance Sheets (in millions): March 31, 2021 Total Fair Value and Carrying Value on Balance Fair Value Measurement Category (in millions) Sheet Level 1 Level 2 Level 3 Assets: Money market account $ 72.4 $ - $ 72.4 $ - Certificates of deposit $ 0.7 $ - $ 0.7 $ - Corporate bonds $ 15.1 $ - $ 15.1 $ - December 31, 2020 Total Fair Value and Carrying Value on Balance Fair Value Measurement Category Sheet Level 1 Level 2 Level 3 Assets: Money market account $ 59.9 $ - $ 59.9 $ - Certificates of deposit $ 2.8 $ - $ 2.8 $ - Corporate bonds $ 25.2 $ - $ 25.2 $ - |
Summary of Amortized Cost and Unrealized (Gains) Losses of Available for Sale Securities | As of March 31, 2021, 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 $ 680 $ 4 $ 14,915 $ 146 Due after one year through five years - - - - Total $ 680 $ 4 $ 14,915 $ 146 |
Summary of Components of AOCI | The following table provides a roll-forward of accumulated other comprehensive income (loss) for the three-month periods ended March 31, 2021 (in millions): Foreign Currency Translation Marketable Securities Total Accumulated other comprehensive income (loss) as of December 31, 2020 $ (1.4 ) $ 0.4 $ (1.0 ) Other comprehensive income (loss) 0.4 (0.1 ) 0.3 Income tax (expense) benefit - - - Other comprehensive income (loss), net of tax 0.4 (0.1 ) 0.3 Accumulated other comprehensive income (loss) as of March 31, 2021 (1.0 ) 0.3 (0.7 ) |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 for the three-month periods ended (in thousands): Three-Month Period Ended March 31, 2021 2020 Broadcast advertising $ 33,675 $ 38,728 Digital advertising 101,482 13,331 Spectrum usage rights 2,844 1,356 Retransmission consent 9,647 9,580 Other 1,232 1,254 Total revenue $ 148,880 $ 64,249 Three-Month Period Ended March 31, 2021 2020 Local direct $ 5,240 $ 5,843 Local agency 13,188 13,566 National agency 15,247 19,319 Total revenue $ 33,675 $ 38,728 |
Summary of Deferred Revenue | (in thousands) December 31, 2020 Increase Decrease * March 31, 2021 Deferred revenue $ 3,127 3,598 (3,127) $ 3,598 * The amount reflects revenue that has been recorded in the three-month period ended March 31, 2021. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Summary of Expected Future Payments Related to Lease Liabilities | The following table summarizes the expected future payments related to lease liabilities as of March 31, 2021: (in thousands) Remainder of 2021 $ 7,300 2022 8,820 2023 7,148 2024 5,986 2025 5,636 2026 and thereafter 15,675 Total minimum payments $ 50,565 Less amounts representing interest (11,040 ) Present value of minimum lease payments 39,525 Less current operating lease liabilities (7,510 ) Long-term operating lease liabilities $ 32,015 |
Summary of Lease Payments and Supplemental Non-Cash Disclosures | The following table summarizes lease payments and supplemental non-cash disclosures: Three-Month Period Ended March 31, (in thousands) 2021 2020 Cash paid for amounts included in lease liabilities: Operating cash flows from operating leases $ 2,756 $ 2,888 Non-cash additions to operating lease assets $ 2,683 $ - |
Summary of Components of Lease Expense | The following table summarizes the components of lease expense: Three-Month Period Three-Month Period Ended March 31, Ended March 31, (in thousands) 2021 2020 Operating lease cost $ 2,153 $ 2,673 Variable lease cost 128 297 Short-term lease cost 439 218 Total lease cost $ 2,720 $ 3,188 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Separate Financial Data for Each of Company's Operating Segment | Separate financial data for each of the Company’s operating segments are provided below. Segment operating profit (loss) is defined as operating profit (loss) before corporate expenses, change in fair value contingent consideration, impairment charge, foreign currency (gain) loss and other operating (gain) loss. The Company generated 65% and 14% of its revenue outside the United States during the three-month periods ended March 31, 2021 and 2020, respectively. The Company evaluates the performance of its operating segments based on the following (in thousands): Three-Month Period Ended March 31, % 2021 2020 Change Net revenue Television $ 36,091 $ 39,199 (8 )% Digital 101,482 13,331 661 % Radio 11,307 11,719 (4 )% Consolidated 148,880 64,249 132 % Cost of revenue - digital 84,756 7,347 * Direct operating expenses Television 14,969 15,825 (5 )% Digital 4,901 3,193 53 % Radio 6,691 7,661 (13 )% Consolidated 26,561 26,679 (0 )% Selling, general and administrative expenses Television 4,915 5,932 (17 )% Digital 5,949 3,671 62 % Radio 2,989 3,988 (25 )% Consolidated 13,853 13,591 2 % Depreciation and amortization Television 3,216 2,875 12 % Digital 1,581 1,150 37 % Radio 387 487 (21 )% Consolidated 5,184 4,512 15 % Segment operating profit (loss) Television 12,991 14,567 (11 )% Digital 4,295 (2,030 ) * Radio 1,240 (417 ) * Consolidated 18,526 12,120 53 % Corporate expenses 7,158 6,840 5 % Impairment charge 1,326 39,835 (97 )% Foreign currency (gain) loss 586 1,508 (61 )% Other operating (gain) loss (1,913 ) (836 ) 129 % Operating income (loss) 11,369 (35,227 ) * Interest expense $ (1,717 ) $ (2,680 ) (36 )% Interest income 140 624 (78 )% Dividend income 2 23 (91 )% Income (loss) before income taxes 9,794 (37,260 ) * Capital expenditures Television $ 1,031 $ 3,182 Digital 336 298 Radio 146 196 Consolidated $ 1,513 $ 3,676 March 31, December 31, Total assets 2021 2020 Television 434,758 425,899 Digital 196,551 196,020 Radio 120,859 125,426 Consolidated $ 752,168 $ 747,345 * Percentage not meaningful. |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Reconciliation of Changes in Redeemable Noncontrolling Interests | The table below presents the reconciliation of changes in redeemable noncontrolling interests (unaudited; in thousands): Three-Month Period Ended March 31, 2021 2020 Beginning balance $ 33,285 $ - Net income (loss) attributable to redeemable noncontrolling interest 1,573 - Ending balance $ 34,858 $ - |
Summary of Purchase Price Allocation | The following is a summary of the purchase price allocation (unaudited; 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 ) |
Schedule of Unaudited Pro Forma Information | The following unaudited pro forma information for the three-month periods ended March 31, 2020 has been prepared to give effect to the Company’s acquisition of a majority interest in Cisneros Interactive as if the acquisition had occurred on January 1, 2020. 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. Three-Month Period Ended March 31, 2020 Pro Forma: Total revenue $ 104,468 Net income (loss) (34,348 ) Net income (loss) attributable to redeemable noncontrolling interest (610 ) Net income (loss) attributable to common stockholders $ (34,958 ) Basic and diluted earnings per share: Net income (loss) per share, attributable to common stockholders, basic and diluted $ (0.41 ) Weighted average common shares outstanding, basic and diluted 84,317,767 |
The Company and Significant A_4
The Company and Significant Accounting Policies - Additional Information (Detail) | Mar. 30, 2020USD ($) | Nov. 30, 2017USD ($) | Mar. 31, 2021USD ($)SegmentStationLocationMarketInstallmentAgreementshares | Jun. 30, 2020 | Mar. 31, 2020USD ($)shares | Dec. 31, 2020USD ($) | Mar. 31, 2021USD ($)Location$ / sharesshares | Aug. 27, 2019USD ($) | Apr. 11, 2018USD ($) | Jul. 13, 2017USD ($) |
Accounting Policies [Line Items] | ||||||||||
Number of reportable segments | Segment | 3 | |||||||||
Percentage of reduction in dividends | 50.00% | |||||||||
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% | |||||||||
Restricted cash | $ 749,000 | $ 749,000 | $ 749,000 | |||||||
Retransmission consent revenue | $ 9,600,000 | |||||||||
Number of Class A common stock shares converted | shares | 1 | |||||||||
Shares of dilutive securities not included in computation of diluted earnings per share | shares | 659,828 | |||||||||
Impairment charge related to indefinite life intangible assets | $ 1,326,000 | |||||||||
Impairment charge | 1,326,000 | $ 39,835,000 | ||||||||
Amount approved under share purchase | $ 45,000,000 | $ 30,000,000 | $ 15,000,000 | |||||||
Aggregate purchase price of repurchased shares | 525,000 | |||||||||
Unamortized debt issuance costs | 1,689,000 | 1,796,000 | 1,689,000 | |||||||
Interest income related to available-for-sale securities | 140,000 | 624,000 | ||||||||
Assets held for sale | 6,138,000 | 2,141,000 | 6,138,000 | |||||||
Carrying value of assets | 752,168,000 | 747,345,000 | 747,345,000 | 752,168,000 | ||||||
Huston, Texas | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Agreement amount to sell building | $ 5,400,000 | |||||||||
Assets held for sale | 200,000 | 200,000 | ||||||||
Laredo, Texas | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Agreement amount to sell building | 2,900,000 | |||||||||
Assets held for sale | 2,000,000 | 2,000,000 | ||||||||
Orlando, Florida | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Impairment charge | 1,300,000 | |||||||||
Assets held for sale | 4,000,000 | 4,000,000 | ||||||||
Consideration from sale of radio station | 4,000,000 | 4,000,000 | ||||||||
Carrying value of assets | 5,300,000 | 5,300,000 | ||||||||
Available-for-Sale Securities | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Interest income related to available-for-sale securities | $ 100,000 | |||||||||
2017 Credit Facility | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Agreement date | Nov. 30, 2017 | |||||||||
Additional borrowing capacity | $ 100,000,000 | |||||||||
First lien net leverage ratio | 4.00% | |||||||||
Certain customary events of default, number of business days to default in the payment of interest on borrowings | 3 days | |||||||||
Certain customary events of default, number of days default continue for compliance with other agreement | 30 days | |||||||||
Certain customary events of default, number of days default continue for financial statement delivery obligations | 10 days | |||||||||
Certain customary events of default, indebtedness aggregate amount | $ 15,000,000 | |||||||||
Certain customary events of default, failure in payment of final judgments aggregate amount | $ 15,000,000 | |||||||||
Certain customary events of default, failure in payment of final judgments aggregate amount period | 30 days | |||||||||
2017 Credit Facility | Eurodollar Rate | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Variable interest rate basis spread on debt | 2.75% | |||||||||
2017 Credit Facility | Base Rate Margin | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Variable interest rate basis spread on debt | 1.75% | |||||||||
2017 Credit Facility | Term Loan B Facility | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Senior Secured debt | $ 300,000,000 | |||||||||
Maturity date of revolving credit facility | Nov. 30, 2024 | |||||||||
2013 Credit Facility | Term Loan B Facility | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Carrying value of term loan | $ 212,800,000 | 212,800,000 | ||||||||
Unamortized debt issuance costs | 1,700,000 | 1,700,000 | ||||||||
Estimated fair value of term loan | $ 203,800,000 | $ 203,800,000 | ||||||||
Class A common stock | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Amount approved under share purchase | $ 15,000,000 | $ 15,000,000 | ||||||||
Number of shares repurchased | shares | 0 | 8,600,000 | ||||||||
Aggregate purchase price of repurchased shares | $ 32,200,000 | |||||||||
Average price of repurchased shares | $ / shares | $ 3.76 | |||||||||
Stock Options And Restricted Stock Units | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Share-based compensation expenses | $ 1,100,000 | 800,000 | ||||||||
Employee Stock Options | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Share-based compensation expenses | 0 | 0 | ||||||||
Restricted Stock Units | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Total unrecognized compensation expense related to grants of restricted stock units | $ 4,700,000 | $ 4,700,000 | ||||||||
Weighted average period for unrecognized compensation expense related to grants of restricted stock units | 1 year 7 months 6 days | |||||||||
Univision | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Payment of sales representation fees to television stations | $ 1,900,000 | 2,200,000 | ||||||||
Number of marketing and sales agreements | Agreement | 2 | |||||||||
Number of markets involved in sales and marketing | Market | 6 | |||||||||
Amount due from television stations for carriage | $ 6,500,000 | $ 6,500,000 | ||||||||
Retransmission consent revenue | $ 6,700,000 | 7,000,000 | ||||||||
Common stock percentage held by Univision | 11.00% | 11.00% | ||||||||
UniMas | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Affiliate advertising minutes per hour for which entity has right to sell | 4 minutes 30 seconds | |||||||||
Accounting Standards Update 2016-18 | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Restricted cash | $ 700,000 | 700,000 | $ 700,000 | |||||||
ASU 2019-12 | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2021 | Jan. 1, 2021 | ||||||||
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 | ||||||||
Minimum | Employee Stock Options | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Vesting period | 1 year | |||||||||
Minimum | Restricted Stock Units | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Vesting period | 1 year | |||||||||
Minimum | Univision | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Affiliate advertising minutes per hour for which entity has right to sell | 4 minutes | |||||||||
Maximum | Employee Stock Options | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Vesting period | 4 years | |||||||||
Maximum | Restricted Stock Units | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Vesting period | 4 years | |||||||||
Television | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Number of stations owned | Station | 54 | |||||||||
Carrying value of assets | $ 434,758,000 | 425,899,000 | $ 434,758,000 | |||||||
Television | FCC Licenses | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Impairment charge related to indefinite life intangible assets | 23,500,000 | |||||||||
Radio | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Number of stations owned | Station | 48 | |||||||||
Radio operations stations, number of location | Location | 16 | 16 | ||||||||
Impairment charge related to indefinite life intangible assets | $ 1,326,000 | |||||||||
Carrying value of assets | $ 120,859,000 | 125,426,000 | $ 120,859,000 | |||||||
Radio | FCC Licenses | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Impairment charge related to indefinite life intangible assets | 9,000,000 | |||||||||
Advertisements and Syndicate Radio Programming | Minimum | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Number of markets owned | Market | 100 | |||||||||
Digital | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Impairment of goodwill | $ 800,000 | |||||||||
Carrying value of assets | $ 196,551,000 | $ 196,020,000 | $ 196,551,000 |
The Company and Significant A_5
The Company and Significant Accounting Policies - Reconciliation of Basic and Diluted Income (Loss) Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Numerator: | ||
Net income (loss) attributable to common stockholders | $ 5,429 | $ (35,592) |
Denominator: | ||
Weighted average common shares outstanding, basic | 85,041,628 | 84,317,767 |
Basic earnings per share: | ||
Net income (loss) per share attributable to common stockholders | $ 0.06 | $ (0.42) |
Numerator: | ||
Net income (loss) attributable to common stockholders | $ 5,429 | $ (35,592) |
Denominator: | ||
Weighted average common shares outstanding, basic | 85,041,628 | 84,317,767 |
Dilutive securities: | ||
Stock options and restricted stock units | 1,944,953 | |
Weighted average common shares outstanding, diluted | 86,986,581 | 84,317,767 |
Diluted earnings per share: | ||
Net income (loss) per share attributable to common stockholders | $ 0.06 | $ (0.42) |
The Company and Significant A_6
The Company and Significant Accounting Policies - Carrying Amount of Intangible Assets Not Subject to Amortization (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Indefinite Lived Intangible Assets By Major Class [Line Items] | |
Intangible assets, Beginning balance | $ 216,653 |
Impairment | (1,326) |
Transfer to Assets Held for Sale | (3,574) |
Intangible assets, Ending balance | 211,753 |
Television | |
Indefinite Lived Intangible Assets By Major Class [Line Items] | |
Intangible assets, Beginning balance | 130,274 |
Intangible assets, Ending balance | 130,274 |
Radio | |
Indefinite Lived Intangible Assets By Major Class [Line Items] | |
Intangible assets, Beginning balance | 86,379 |
Impairment | (1,326) |
Transfer to Assets Held for Sale | (3,574) |
Intangible assets, Ending balance | $ 81,479 |
The Company and Significant A_7
The Company and Significant Accounting Policies - Fair Value Assets and Liabilities Measured on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Money Market Account | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value and Carrying Value on Assets | $ 72.4 | $ 59.9 |
Certificates of Deposit | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value and Carrying Value on Assets | 0.7 | 2.8 |
Corporate Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value and Carrying Value on Assets | 15.1 | 25.2 |
Level 2 | Money Market Account | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value and Carrying Value on Assets | 72.4 | 59.9 |
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 | 0.7 | 2.8 |
Level 2 | Corporate Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value and Carrying Value on Assets | $ 15.1 | $ 25.2 |
The Company and Significant A_8
The Company and Significant Accounting Policies - Summary of Amortized Cost and Unrealized (Gains) Losses of Available for Sale Securities (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Certificates of Deposit | |
Amortized Cost | |
Due within a year | $ 680 |
Total | 680 |
Unrealized gains (losses) | |
Due within a year | 4 |
Total | 4 |
Corporate Bonds | |
Amortized Cost | |
Due within a year | 14,915 |
Total | 14,915 |
Unrealized gains (losses) | |
Due within a year | 146 |
Total | $ 146 |
The Company and Significant A_9
The Company and Significant Accounting Policies - Summary of Components of AOCI (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance, Beginning | $ 275,980 | $ 288,172 |
Other comprehensive income (loss) | 300 | |
Total other comprehensive income (loss) | 338 | (389) |
Balance, Ending | 280,683 | 248,237 |
Foreign Currency Translation | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance, Beginning | (1,400) | |
Other comprehensive income (loss) | 400 | |
Total other comprehensive income (loss) | 400 | |
Balance, Ending | (1,000) | |
Marketable Securities | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance, Beginning | 400 | |
Other comprehensive income (loss) | (100) | |
Total other comprehensive income (loss) | (100) | |
Balance, Ending | 300 | |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance, Beginning | (1,056) | (131) |
Balance, Ending | $ (718) | $ (520) |
Revenues - Summary of Revenues
Revenues - Summary of Revenues Disaggregated by Major Source (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 148,880 | $ 64,249 |
Broadcast Advertising | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 33,675 | 38,728 |
Digital Advertising | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 101,482 | 13,331 |
Spectrum Usage Rights | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 2,844 | 1,356 |
Retransmission Consent | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 9,647 | 9,580 |
Other | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 1,232 | $ 1,254 |
Revenues - Summary of Disaggreg
Revenues - Summary of Disaggregation of Broadcast Advertising Revenue by Sales Channel (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 148,880 | $ 64,249 |
Advertising | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 33,675 | 38,728 |
Advertising | Local Direct | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 5,240 | 5,843 |
Advertising | Local Agency | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 13,188 | 13,566 |
Advertising | National Agency | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 15,247 | $ 19,319 |
Revenues - Summary of Deferred
Revenues - Summary of Deferred Revenue (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Revenue From Contract With Customer [Abstract] | |
Beginning Balance | $ 3,127 |
Increase | 3,598 |
Decrease | (3,127) |
Ending Balance | $ 3,598 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
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. | |
Weighted average remaining lease term | 9 years 8 months 12 days | 11 years 1 month 6 days |
Weighted average discount rate | 6.30% | 6.30% |
Lease cost | $ 2,720 | $ 3,188 |
Corporate Expenses | ||
Lessee Lease Description [Line Items] | ||
Lease cost | 100 | 200 |
Direct Operating Expenses | ||
Lessee Lease Description [Line Items] | ||
Lease cost | 1,400 | 1,600 |
Selling, General and Administrative Expenses | ||
Lessee Lease Description [Line Items] | ||
Lease cost | $ 1,200 | $ 1,400 |
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 | Mar. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Remainder of 2021 | $ 7,300 | |
2022 | 8,820 | |
2023 | 7,148 | |
2024 | 5,986 | |
2025 | 5,636 | |
2026 and thereafter | 15,675 | |
Total minimum payments | 50,565 | |
Less amounts representing interest | (11,040) | |
Present value of minimum lease payments | 39,525 | |
Less current operating lease liabilities | (7,510) | $ (7,290) |
Long-term operating lease liabilities | $ 32,015 | $ 31,775 |
Leases - Summary of Lease Payme
Leases - Summary of Lease Payments and Supplemental Non-Cash Disclosures (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash paid for amounts included in lease liabilities: | ||
Operating cash flows from operating leases | $ 2,756 | $ 2,888 |
Non-cash additions to operating lease assets | $ 2,683 |
Leases - Summary of Components
Leases - Summary of Components of Lease Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 2,153 | $ 2,673 |
Variable lease cost | 128 | 297 |
Short-term lease cost | 439 | 218 |
Total lease cost | $ 2,720 | $ 3,188 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2021SegmentStationMarket | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | Segment | 3 | |
Percentage of revenue generated from outside the United States | 65.00% | 14.00% |
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 Information - Separate
Segment Information - Separate Financial Data for Each of Company's Operating Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Net revenue | $ 148,880 | $ 64,249 | |
Direct operating expenses | 26,561 | 26,679 | |
Selling, general and administrative expenses | 13,853 | 13,591 | |
Depreciation and amortization | 5,184 | 4,512 | |
Operating income (loss) | 11,369 | (35,227) | |
Corporate expenses | 7,158 | 6,840 | |
Impairment charge | 1,326 | 39,835 | |
Foreign currency (gain) loss | 586 | 1,508 | |
Other operating (gain) loss | (1,913) | (836) | |
Interest expense | (1,717) | (2,680) | |
Interest income | 140 | 624 | |
Dividend income | 2 | 23 | |
Income (loss) before income taxes | 9,794 | (37,260) | |
Capital expenditures | 1,513 | 3,676 | |
Total assets | $ 752,168 | 747,345 | $ 747,345 |
Percentage change in net revenue | 132.00% | ||
Percentage change in direct operating expenses | 0.00% | ||
Percentage change in selling, general and administrative expenses | 2.00% | ||
Percentage change in depreciation and amortization | 15.00% | ||
Percentage change in segment operating profit (loss) | 53.00% | ||
Percentage change in corporate expenses | 5.00% | ||
Percentage change in impairment charge | (97.00%) | ||
Percentage change in foreign currency (gain) loss | (61.00%) | ||
Percentage change in other operating (gain) loss | 129.00% | ||
Percentage change in interest expense | (36.00%) | ||
Percentage change in interest income | (78.00%) | ||
Percentage change in dividend income | (91.00%) | ||
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | $ 18,526 | 12,120 | |
Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Corporate expenses | 7,158 | 6,840 | |
Television | |||
Segment Reporting Information [Line Items] | |||
Direct operating expenses | 14,969 | 15,825 | |
Selling, general and administrative expenses | 4,915 | 5,932 | |
Depreciation and amortization | 3,216 | 2,875 | |
Capital expenditures | 1,031 | 3,182 | |
Total assets | $ 434,758 | 425,899 | |
Percentage change in direct operating expenses | (5.00%) | ||
Percentage change in selling, general and administrative expenses | (17.00%) | ||
Percentage change in depreciation and amortization | 12.00% | ||
Percentage change in segment operating profit (loss) | (11.00%) | ||
Television | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | $ 12,991 | 14,567 | |
Television | Advertising and Retransmission Consent | |||
Segment Reporting Information [Line Items] | |||
Net revenue | $ 36,091 | 39,199 | |
Percentage change in net revenue | (8.00%) | ||
Radio | |||
Segment Reporting Information [Line Items] | |||
Direct operating expenses | $ 6,691 | 7,661 | |
Selling, general and administrative expenses | 2,989 | 3,988 | |
Depreciation and amortization | 387 | 487 | |
Capital expenditures | 146 | 196 | |
Total assets | $ 120,859 | 125,426 | |
Percentage change in direct operating expenses | (13.00%) | ||
Percentage change in selling, general and administrative expenses | (25.00%) | ||
Percentage change in depreciation and amortization | (21.00%) | ||
Radio | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | $ 1,240 | (417) | |
Radio | Advertising and Retransmission Consent | |||
Segment Reporting Information [Line Items] | |||
Net revenue | $ 11,307 | 11,719 | |
Percentage change in net revenue | (4.00%) | ||
Digital | |||
Segment Reporting Information [Line Items] | |||
Cost of revenue | $ 84,756 | 7,347 | |
Direct operating expenses | 4,901 | 3,193 | |
Selling, general and administrative expenses | 5,949 | 3,671 | |
Depreciation and amortization | 1,581 | 1,150 | |
Capital expenditures | 336 | 298 | |
Total assets | $ 196,551 | 196,020 | |
Percentage change in direct operating expenses | 53.00% | ||
Percentage change in selling, general and administrative expenses | 62.00% | ||
Percentage change in depreciation and amortization | 37.00% | ||
Digital | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | $ 4,295 | (2,030) | |
Digital | Advertising and Retransmission Consent | |||
Segment Reporting Information [Line Items] | |||
Net revenue | $ 101,482 | $ 13,331 | |
Percentage change in net revenue | 661.00% |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | Oct. 13, 2020 | Mar. 31, 2021 | Mar. 31, 2020 |
Business Acquisition [Line Items] | |||
Net revenue | $ 148,880 | $ 64,249 | |
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) the remaining 49% of the issued and outstanding shares of Cisneros Interactive stock 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. | ||
Redeemable noncontrolling interest | $ 30,800 | ||
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 | ||
Net revenue | 88,500 | ||
Net Income Loss | $ 3,200 | ||
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) the remaining 49% of the issued and outstanding shares of Cisneros Interactive stock 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. |
Acquisitions - Reconciliation o
Acquisitions - Reconciliation of Changes in Redeemable Noncontrolling Interests (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Temporary Equity [Abstract] | |
Beginning balance | $ 33,285 |
Net income (loss) attributable to redeemable noncontrolling interest | 1,573 |
Ending balance | $ 34,858 |
Acquisitions - Summary of Purch
Acquisitions - Summary of Purchase Price Allocation (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Oct. 13, 2020 |
Business Acquisition [Line Items] | |||
Goodwill | $ 58,043 | $ 58,043 | |
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) |
Acquisitions - Schedule of Unau
Acquisitions - Schedule of Unaudited Pro Forma Information (Detail) - Cisneros Interactive | 3 Months Ended |
Mar. 31, 2020USD ($)$ / sharesshares | |
Pro Forma: | |
Total revenue | $ 104,468 |
Net income (loss) | (34,348) |
Net income (loss) attributable to redeemable noncontrolling interest | (610) |
Net income (loss) attributable to common stockholders | $ (34,958) |
Basic and diluted earnings per share: | |
Net income (loss) per share, attributable to common stockholders, basic and diluted | $ / shares | $ (0.41) |
Weighted average common shares outstanding, basic and diluted | shares | 84,317,767 |