Quarterly report pursuant to Section 13 or 15(d)

SEGMENT DATA

v3.5.0.2
SEGMENT DATA
 6 Months Ended
Jun. 30, 2016
Segment Reporting [Abstract]  
SEGMENT DATA
NOTE 17. SEGMENT DATA
 
FASB ASC Topic 280, “Segment Reporting,” requires companies to provide certain information about their operating segments. We have three operating segments: (1) Broadcast, (2) Digital Media and (3) Publishing.
 
Our operating segments reflect how our chief operating decision makers, which we define as a collective group of senior executives, assesses the performance of each operating segment and determines the appropriate allocations of resources to each segment. Our operating segments now meet the quantitative thresholds to qualify as reportable segments. We continually review our operating segment classifications to align with operational changes in our business and may make future changes as necessary.
 
We measure and evaluate our operating segments based on operating income and operating expenses that do not include allocations of costs related to corporate functions, such as accounting and finance, human resources, legal, tax and treasury; nor do they include costs such as amortization, depreciation, taxes or interest expense. Segment performance, as defined by Salem, is not necessarily comparable to other similarly titled captions of other companies.
 
The table below presents financial information for each operating segment as of June 30, 2016 and 2015 based on the composition of our operating segments:
 
 
 
Broadcast
 
Digital
Media
 
Publishing
 
Unallocated
Corporate
 
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
Three Months Ended June 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net revenue
 
$
49,707
 
$
11,311
 
$
6,761
 
$
—
 
$
67,779
 
Operating expenses
 
 
35,709
 
 
8,781
 
 
6,983
 
 
3,568
 
 
55,041
 
Operating income (loss) before depreciation, amortization, change in the estimated fair value of contingent earn-out consideration, impairment of long-lived assets and (gain) loss on the sale or disposal of assets
 
$
13,998
 
$
2,530
 
$
(222)
 
$
(3,568)
 
$
12,738
 
Depreciation
 
 
1,802
 
 
798
 
 
165
 
 
217
 
 
2,982
 
Amortization
 
 
23
 
 
1,093
 
 
72
 
 
1
 
 
1,189
 
Change in the estimated fair value of contingent earn-out consideration
 
 
—
 
 
(36)
 
 
(98)
 
 
—
 
 
(134)
 
Impairment of long-lived assets
 
 
700
 
 
—
 
 
—
 
 
—
 
 
700
 
(Gain) loss on the sale or disposal of assets
 
 
(1,721)
 
 
20
 
 
(3)
 
 
3
 
 
(1,701)
 
Operating income (loss)
 
$
13,194
 
$
655
 
$
(358)
 
$
(3,789)
 
$
9,702
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net revenue
 
$
49,060
 
$
11,499
 
$
6,734
 
$
—
 
$
67,293
 
Operating expenses
 
 
35,187
 
 
8,767
 
 
6,469
 
 
3,518
 
 
53,941
 
Operating income (loss) before depreciation, amortization, change in the estimated fair value of contingent earn-out consideration and loss on disposal of assets
 
$
13,873
 
$
2,732
 
$
265
 
$
(3,518)
 
$
13,352
 
Depreciation
 
 
1,889
 
 
782
 
 
167
 
 
222
 
 
3,060
 
Amortization
 
 
23
 
 
1,156
 
 
135
 
 
1
 
 
1,315
 
Change in the estimated fair value of contingent earn-out consideration
 
 
—
 
 
(244)
 
 
(63)
 
 
—
 
 
(307)
 
Loss on disposal of assets
 
 
30
 
 
—
 
 
—
 
 
—
 
 
30
 
Operating income (loss)
 
$
11,931
 
$
1,038
 
$
26
 
$
(3,741)
 
$
9,254
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net revenue
 
$
98,178
 
$
22,595
 
$
11,581
 
$
—
 
$
132,354
 
Operating expenses
 
 
71,697
 
 
17,967
 
 
11,931
 
 
7,781
 
 
109,376
 
Operating income (loss) before depreciation, amortization, change in the estimated fair value of contingent earn-out consideration, impairment of long-lived assets and (gain) loss on the sale or disposal of assets
 
$
26,481
 
$
4,628
 
$
(350)
 
$
(7,781)
 
$
22,978
 
Depreciation
 
 
3,650
 
 
1,580
 
 
315
 
 
429
 
 
5,974
 
Amortization
 
 
45
 
 
2,142
 
 
144
 
 
1
 
 
2,332
 
Change in the estimated fair value of contingent earn-out consideration
 
 
—
 
 
(106)
 
 
(156)
 
 
—
 
 
(262)
 
Impairment of long-lived assets
 
 
700
 
 
—
 
 
—
 
 
—
 
 
700
 
(Gain) loss on the sale or disposal of assets
 
 
(1,542)
 
 
6
 
 
(21)
 
 
6
 
 
(1,551)
 
Operating income (loss)
 
$
23,628
 
$
1,006
 
$
(632)
 
$
(8,217)
 
$
15,785
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net revenue
 
$
95,599
 
$
22,290
 
$
11,260
 
$
—
 
$
129,149
 
Operating expenses
 
 
69,104
 
 
17,767
 
 
10,966
 
 
7,509
 
 
105,346
 
Operating income (loss) before depreciation, amortization, change in the estimated fair value of contingent earn-out consideration and (gain) loss on the sale or disposal of assets
 
$
26,495
 
$
4,523
 
$
294
 
$
(7,509)
 
$
23,803
 
Depreciation
 
 
3,840
 
 
1,558
 
 
335
 
 
499
 
 
6,232
 
Amortization
 
 
46
 
 
2,326
 
 
271
 
 
1
 
 
2,644
 
Change in the estimated fair value of contingent earn-out consideration
 
 
—
 
 
(211)
 
 
22
 
 
—
 
 
(189)
 
(Gain) loss on the sale or disposal of assets
 
 
159
 
 
—
 
 
(1)
 
 
1
 
 
159
 
Operating income (loss)
 
$
22,450
 
$
850
 
$
(333)
 
$
(8,010)
 
$
14,957
 
 
 
 
Broadcast
 
Digital
Media
 
Publishing
 
Unallocated
Corporate
 
Consolidated
 
 
 
(Dollars in thousands)
 
As of June 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inventories, net
 
$
—
 
$
388
 
$
515
 
$
—
 
$
903
 
Property and equipment, net
 
 
88,155
 
 
7,131
 
 
1,625
 
 
7,648
 
 
104,559
 
Broadcast licenses
 
 
393,566
 
 
—
 
 
—
 
 
—
 
 
393,566
 
Goodwill
 
 
3,581
 
 
20,160
 
 
1,044
 
 
8
 
 
24,793
 
Other indefinite-lived intangible assets
 
 
—
 
 
—
 
 
833
 
 
—
 
 
833
 
Amortizable intangible assets, net
 
 
447
 
 
11,522
 
 
1,244
 
 
7
 
 
13,220
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inventories, net
 
$
—
 
$
505
 
$
388
 
$
—
 
$
893
 
Property and equipment, net
 
 
88,788
 
 
7,033
 
 
1,742
 
 
7,920
 
 
105,483
 
Broadcast licenses
 
 
393,031
 
 
—
 
 
—
 
 
—
 
 
393,031
 
Goodwill
 
 
3,581
 
 
19,930
 
 
1,044
 
 
8
 
 
24,563
 
Other indefinite-lived intangible assets
 
 
—
 
 
—
 
 
833
 
 
—
 
 
833
 
Amortizable intangible assets, net
 
 
492
 
 
9,599
 
 
1,385
 
 
5
 
 
11,481