~~(Former name, former address and former fiscal year, if changed since last report)~~

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.:

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐

~~Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).~~

As of August 5, 2019, there were 60,688,900 shares, $0.0001 par value per share, of the registrant’s Class A common stock outstanding, 14,927,613 shares, $0.0001 par value per share, of the registrant’s Class B common stock outstanding and 9,352,729 shares, $0.0001 par value per share, of the registrant’s Class U common stock outstanding.

This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including, but not limited to, any projections of earnings, revenue or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements concerning proposed new services or developments; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing.

Forward-looking statements may include the words “may,” “could,” “will,” “estimate,” “intend,” “continue,” “believe,” “expect” or “anticipate” or other similar words. These forward-looking statements present our estimates and assumptions only as of the date of this report. Except for our ongoing obligation to disclose material information as required by the federal securities laws, we do not intend, and undertake no obligation, to update any forward-looking statement.

Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and inherent risks and uncertainties. Some of the key factors impacting these risks and uncertainties include, but are not limited to:

For a detailed description of these and other factors that could cause actual results to differ materially from those expressed in any forward-looking statement, please see the section entitled “Risk Factors,” beginning on page 33 of our Annual Report on Form 10-K for the year ended December 31, 2018.

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

As of August 3, 2020, there were 59,905,386 shares, $0.0001 par value per share, of the registrant’s Class A common stock outstanding, 14,927,613 shares, $0.0001 par value per share, of the registrant’s Class B common stock outstanding and 9,352,729 shares, $0.0001 par value per share, of the registrant’s Class U common stock outstanding.

Forward-looking statements may include the words “may,” “could,” “will,” “estimate,” “intend,” “continue,” “believe,” “expect”, “anticipate”, “hope” or other similar words. These forward-looking statements present our estimates and assumptions only as of the date of this report. Except for our ongoing obligation to disclose material information as required by the federal securities laws, we do not intend, and undertake no obligation, to update any forward-looking statement.

For a detailed description of these and other factors that could cause actual results to differ materially from those expressed in any forward-looking statement, please see the section entitled “Risk Factors,” beginning on page 31 of our Annual Report on Form 10-K for the year ended December 31, 2019 and beginning on page 42 of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020.

	June 30,			December 31,			June 30,			December 31,
	2019			2018			2020			2019
ASSETS
Current assets
Cash and cash equivalents	$	52,631			46,733		$	69,270			33,123
Marketable securities		113,349			132,424			65,098			91,662
Restricted cash		732			732			735			734
Trade receivables, (including related parties of $5,145 and $4,530) net of allowance for doubtful accounts of $3,032 and $3,395		69,841			79,308
Trade receivables, (including related parties of $6,548 and $4,251) net of allowance for doubtful accounts of $3,683 and $2,890								51,706			71,406
Assets held for sale		1,179			1,179			3,099			950
Prepaid expenses and other current assets (including related parties of $274 and $274)		12,558			10,672			16,586			11,557
Total current assets		250,290			271,048			206,494			209,432
Property and equipment, net of accumulated depreciation of $187,226 and $187,375		74,502			64,939
Intangible assets subject to amortization, net of accumulated amortization of $95,646 and $93,793 (including related parties of $7,712 and $8,327)		19,442			22,598
Property and equipment, net of accumulated depreciation of $188,749 and $188,579								74,810			79,642
Intangible assets subject to amortization, net of accumulated amortization of $101,713 and $99,819 (including related parties of $6,484 and $7,098)								9,752			16,772
Intangible assets not subject to amortization		254,598			254,598			216,853			252,544
Goodwill		51,857			74,292			45,711			46,511
Operating leases right of use asset		46,206			-			35,126			43,837
Other assets		2,684			2,934			7,428			7,462
Total assets	$	699,579		$	690,409		$	596,174		$	656,200

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of long-term debt	$	3,000		$	3,000		$	3,000		$	3,000
Accounts payable and accrued expenses (including related parties of $2,415 and $1,948)		46,198			51,034
Accounts payable and accrued expenses (including related parties of $1,918 and $2,147)								48,572			53,931
Operating lease liabilities		11,420			-			7,830			9,056
Total current liabilities		60,618			54,034			59,402			65,987
Long-term debt, less current maturities, net of unamortized debt issuance costs of $2,718 and $2,709		239,032			240,541
Long-term debt, less current maturities, net of unamortized debt issuance costs of $2,014 and $2,226								211,736			213,024
Long-term operating lease liabilities		41,091			-			32,784			41,387
Other long-term liabilities		7,516			16,418			3,385			3,371
Deferred income taxes		48,401			46,684			38,607			44,259
Total liabilities		396,658			357,677			345,914			368,028

Commitments and contingencies (note 6)

Stockholders' equity
Class A common stock, $0.0001 par value, 260,000,000 shares authorized; shares issued and outstanding 2019 60,718,613; 2018 63,210,531		6			6
Class B common stock, $0.0001 par value, 40,000,000 shares authorized; shares issued and outstanding 2019 and 2018 14,927,613		2			2
Class U common stock, $0.0001 par value, 40,000,000 shares authorized; shares issued and outstanding 2019 and 2018 9,352,729		1			1
Class A common stock, $0.0001 par value, 260,000,000 shares authorized; shares issued and outstanding 2020 59,905,386 and 2019 60,074,698								6			6
Class B common stock, $0.0001 par value, 40,000,000 shares authorized; shares issued and outstanding 2020 and 2019 14,927,613								2			2
Class U common stock, $0.0001 par value, 40,000,000 shares authorized; shares issued and outstanding 2020 and 2019 9,352,729								1			1
Additional paid-in capital		846,345			862,299			830,900			836,170
Accumulated deficit		(543,019	)		(528,164	)		(581,130	)		(547,876	)
Accumulated other comprehensive income (loss)		(414	)		(1,412	)		481			(131	)
Total stockholders' equity		302,921			332,732			250,260			288,172
Total liabilities and stockholders' equity	$	699,579		$	690,409		$	596,174		$	656,200

	Three-Month Period						Six-Month Period						Three-Month Period						Six-Month Period
	Ended June 30,						Ended June 30,						Ended June 30,						Ended June 30,
	2019			2018			2019			2018			2020			2019			2020			2019
Net Revenue	$	69,241		$	74,329		$	133,921		$	141,167		$	45,116		$	69,241		$	109,365		$	133,921

Expenses:
Cost of revenue - digital media		8,859			11,384			16,501			22,009			6,447			8,859			13,794			16,501
Direct operating expenses (including related parties of $2,007, $2,208, $3,969 and $4,256) (including non-cash stock-based compensation of $116, $76, $250 and $293)		29,655			31,117			58,585			62,150
Direct operating expenses (including related parties of $1,386, $2,007, $3,605 and $3,969) (including non-cash stock-based compensation of $104, $116, $235 and $250)														22,140			29,655			48,819			58,585
Selling, general and administrative expenses		13,545			12,673			27,359			25,967			10,897			13,545			24,488			27,359
Corporate expenses (including non-cash stock-based compensation of $719, $1,100, $1,385 and $2,133)		6,501			6,266			13,395			12,241
Depreciation and amortization (includes direct operating of $2,968, $2,560, $5,462 and $5,097; selling, general and administrative of $1,176, $1,301, $2,445 and $2,614; and corporate of $162, $153, $315 and $242) (including related parties of $307, $307, $615 and $614)		4,306			4,019			8,222			7,958
Corporate expenses (including non-cash stock-based compensation of $699, $719, $1,357 and $1,385)														5,384			6,501			12,224			13,395
Depreciation and amortization (includes direct operating of $2,800, $2,968, $5,931 and $5,462; selling, general and administrative of $891, $1,176, $2,099 and $2,445; and corporate of $182, $162, $355 and $315) (including related parties of $307, $307, $614 and $615)														3,873			4,306			8,385			8,222
Change in fair value contingent consideration		(2,735	)		(913	)		(2,376	)		1,187			-			(2,735	)		-			(2,376	)
Impairment charge		22,368			-			22,368			-			-			22,368			39,835			22,368
Foreign currency (gain) loss		(82	)		(17	)		50			196			(155	)		(82	)		1,353			50
Other operating (gain) loss		(1,597	)		(273	)		(3,593	)		(295	)		(2,030	)		(1,597	)		(2,866	)		(3,593	)
Operating income (loss)		(11,579	)		10,073			(6,590	)		9,754			(1,440	)		(11,579	)		(36,667	)		(6,590	)
Interest expense		(3,554	)		(4,001	)		(7,044	)		(7,399	)		(2,024	)		(3,554	)		(4,704	)		(7,044	)
Interest income		857			1,039			1,776			1,952			539			857			1,162			1,776
Dividend income		251			417			506			545			-			251			24			506
Income (loss) before income taxes		(14,025	)		7,528			(11,352	)		4,852			(2,925	)		(14,025	)		(40,185	)		(11,352	)
Income tax benefit (expense)		(2,252	)		(2,652	)		(3,345	)		(1,721	)		5,263			(2,252	)		6,931			(3,345	)
Income (loss) before equity in net income (loss) of nonconsolidated affiliate		(16,277	)		4,876			(14,697	)		3,131			2,338			(16,277	)		(33,254	)		(14,697	)
Equity in net income (loss) of nonconsolidated affiliate, net of tax		(2	)		(36	)		(158	)		(98	)		-			(2	)		-			(158	)
Net income (loss)	$	(16,279	)	$	4,840		$	(14,855	)	$	3,033		$	2,338		$	(16,279	)	$	(33,254	)	$	(14,855	)

Basic and diluted earnings per share:
Net income (loss) per share, basic and diluted	$	(0.19	)	$	0.05		$	(0.17	)	$	0.03		$	0.03		$	(0.19	)	$	(0.39	)	$	(0.17	)

Cash dividends declared per common share	$	0.05		$	0.05		$	0.10		$	0.05		$	0.03		$	0.05		$	0.08		$	0.10

Weighted average common shares outstanding, basic		85,359,998			88,959,935			85,728,820			89,635,759			84,123,530			85,359,998			84,220,649			85,728,820
Weighted average common shares outstanding, diluted		85,359,998			90,021,949			85,728,820			90,805,086			84,669,250			85,359,998			84,220,649			85,728,820

	Three-Month Period						Six-Month Period						Three-Month Period					Six-Month Period
	Ended June 30,						Ended June 30,						Ended June 30,					Ended June 30,
	2019			2018			2019			2018			2020		2019			2020			2019
Net income (loss)	$	(16,279	)	$	4,840		$	(14,855	)	$	3,033		$	2,338	$	(16,279	)	$	(33,254	)	$	(14,855	)
Other comprehensive income (loss), net of tax:
Change in foreign currency translation		(318	)		(550	)		(288	)		(260	)		467		(318	)		301			(288	)
Change in fair value of available for sale securities		523			(3	)		1,286			(1,242	)		534		523			311			1,286
Total other comprehensive income (loss)		205			(553	)		998			(1,502	)		1,001		205			612			998
Comprehensive income (loss)	$	(16,074	)	$	4,287		$	(13,857	)	$	1,531		$	3,339	$	(16,074	)	$	(32,642	)	$	(13,857	)

	Number of Common Shares										Common Stock												Accumulated						Number of Common Shares										Common Stock												Accumulated
								Treasury			Class		Class		Class		Additional Paid-in			Accumulated			Other Comprehensive													Treasury			Class		Class		Class		Additional Paid-in			Accumulated			Other Comprehensive
	Class A			Class B		Class U		Stock			A		B		U		Capital			Deficit			Income (Loss)			Total			Class A			Class B		Class U		Stock			A		B		U		Capital			Deficit			Income (Loss)			Total
Balance, December 31, 2018		63,210,531			14,927,613		9,352,729		-			6		2		1		862,299			(528,164	)		(1,412	)		332,732
Tax payments related to shares withheld for share-based compensation plans		25,059			-		-		-			-		-		-		(42	)		-			-			(42	)
Balance, December 31, 2019																														60,074,698			14,927,613		9,352,729		-			6		2		1		836,170			(547,876	)		(131	)		288,172
Stock-based compensation expense		-			-		-		-			-		-		-		800			-			-			800			-			-		-		-			-		-		-		789			-			-			789
Repurchase of Class A common stock		(2,098,443	)		-		-		2,098,443			-		-		-		(7,706	)		-			-			(7,706	)		(259,500	)		-		-		259,500			-		-		-		(525	)		-			-			(525	)
Retirement of treasury stock		-			-		-		(2,098,443	)		-		-		-		-			-			-			-			-			-		-		(259,500	)		-		-		-		-			-			-			-
Dividends paid		-			-		-		-			-		-		-		(4,271	)		-			-			(4,271	)		-			-		-		-			-		-		-		(4,218	)		-			-			(4,218	)
Change in fair value of marketable securities		-			-		-		-			-		-		-		-			-			763			763			-			-		-		-			-		-		-		-			-			(223	)		(223	)
Foreign currency translation gain (loss)		-			-		-		-			-		-		-		-			-			30			30			-			-		-		-			-		-		-		-			-			(166	)		(166	)
Net income (loss) for the three-month period-ended March 31, 2019		-			-		-		-			-		-		-		-			1,424			-			1,424
Balance, March 31, 2019		61,137,147			14,927,613		9,352,729		-			6		2		1		851,080			(526,740	)		(619	)		323,730
Net income (loss) for the three-month period-ended March 31, 2020																														-			-		-		-			-		-		-		-			(35,592	)		-			(35,592	)
Balance, March 31, 2020																														59,815,198			14,927,613		9,352,729		-			6		2		1		832,216			(583,468	)		(520	)		248,237
Issuance of common stock upon exercise of stock options or awards of restricted stock units		20,000			-		-		-			-		-		-		-			-			-			-			90,188			-		-		-			-		-		-		(15	)		-			-			(15	)
Stock-based compensation expense		-			-		-		-			-		-		-		836			-			-			836			-			-		-		-			-		-		-		803			-			-			803
Repurchase of Class A common stock		(438,534	)		-		-		438,534			-		-		-		(1,302	)		-			-			(1,302	)
Retirement of treasury stock		-			-		-		(438,534	)		-		-		-		-			-			-			-
Dividends paid		-			-		-		-			-		-		-		(4,269	)		-			-			(4,269	)		-			-		-		-			-		-		-		(2,104	)		-			-			(2,104	)
Change in fair value of marketable securities		-			-		-		-			-		-		-		-			-			523			523			-			-		-		-			-		-		-		-			-			534			534
Foreign currency translation gain (loss)		-			-		-		-			-		-		-		-			-			(318	)		(318	)		-			-		-		-			-		-		-		-			-			467			467
Net income (loss) for the three-month period-ended June 30, 2019		-			-		-		-			-		-		-		-			(16,279	)		-			(16,279	)
Balance, June 30, 2019		60,718,613			14,927,613		9,352,729		-			6		2		1		846,345			(543,019	)		(414	)		302,921


























Net income (loss) for the three-month period-ended June 30, 2020																														-			-		-		-			-		-		-		-			2,338			-			2,338
Balance, June 30, 2020																														59,905,386			14,927,613		9,352,729		-			6		2		1		830,900			(581,130	)		481			250,260

	Number of Common Shares										Common Stock													Accumulated
								Treasury			Class			Class		Class		Additional Paid-in			Accumulated			Other Comprehensive
	Class A			Class B		Class U		Stock			A			B		U		Capital			Deficit			Income (Loss)			Total
Balance, December 31, 2018		63,210,531			14,927,613		9,352,729		-			6			2		1		862,299			(528,164	)		(1,412	)		332,732
Tax payments related to shares withheld for share-based compensation plans		25,059			-		-		-			-			-		-		(42	)		-			-			(42	)
Stock-based compensation expense		-			-		-		-			-			-		-		800			-			-			800
Repurchase of Class A common stock		(2,098,443	)		-		-		2,098,443			-			-		-		(7,706	)		-			-			(7,706	)
Retirement of treasury stock		-			-		-		(2,098,443	)		-			-		-		-			-			-			-
Dividends paid		-			-		-		-			-			-		-		(4,271	)		-			-			(4,271	)
Change in fair value of marketable securities		-			-		-		-			-			-		-		-			-			763			763
Foreign currency translation gain (loss)		-			-		-		-			-			-		-		-			-			30			30
Net income (loss) for the three-month period-ended March 31, 2019		-			-		-		-			-			-		-		-			1,424			-			1,424
Balance, March 31, 2019		61,137,147			14,927,613		9,352,729		-			6			2		1		851,080			(526,740	)		(619	)		323,730
Issuance of common stock upon exercise of stock options or awards of restricted stock units		20,000			-		-		-			-			-		-		-			-			-			-
Stock-based compensation expense		-			-		-		-			-			-		-		836			-			-			836
Repurchase of Class A common stock		(438,534	)		-		-		438,534			(0	)		-		-		(1,302	)		-			-			(1,302	)
Retirement of treasury stock		-			-		-		(438,534	)		-			-		-		-			-			-			-
Dividends paid		-			-		-		-			-			-		-		(4,269	)		-			-			(4,269	)
Change in fair value of marketable securities		-			-		-		-			-			-		-		-			-			523			523
Foreign currency translation gain (loss)		-			-		-		-			-			-		-		-			-			(318	)		(318	)
Net income (loss) for the three-month period-ended June 30, 2019		-			-		-		-			-			-		-		-			(16,279	)		-			(16,279	)
Balance, June 30, 2019		60,718,613			14,927,613		9,352,729		-			6			2		1		846,345			(543,019	)		(414	)		302,921

Number of Common Shares

Class A

Accumulated

Treasury

Class

Class

Class

Additional
Paid-in

Accumulated

Other
Comprehensive

Class A

Class B

Class U

Stock

A

B

U

Capital

Deficit

Income (Loss)

Total

0

0

Balance, December 31, 2017

66,069,325

14,927,613

9,352,729

-

7

2

1

888,650

(540,325
)

(60
)

348,275

Issuance of common stock upon exercise of stock options  or awards of restricted stock units

17,356

-

-

-

-

-

-

-

-

-

-

Tax payments related to shares withheld for share-based  compensation plans

-

-

-

-

-

-

-

(43
)

-

-

(43
)
Stock-based compensation expense

-

-

-

-

-

-

-

1,249

-

-

1,249

Repurchase of Class A common stock

(500,587
)

-

-

500,587

-

-

-

(2,402
)

-

-

(2,402
)
Retirement of treasury stock

-

-

-

(500,587
)

-

-

-

-

-

-

-

Dividends paid

-

-

-

-

-

-

-

(4,518
)

-

-

(4,518
)
Change in fair value of marketable securities

-

-

-

-

-

-

-

-

-

(1,239
)

(1,239
)
Foreign currency translation gain (loss)

-

-

-

-

-

-

-

-

-

290

290

Net income (loss) for the three-month period-ended March 31, 2018

-

-

-

-

-

-

-

-

(1,808
)

-

(1,808
)
Balance, March 31, 2018

65,586,094

14,927,613

9,352,729

-

7

2

1

882,936

(542,133
)

(1,009
)

339,804

Issuance of common stock upon exercise of stock options  or awards of restricted stock units

56,147

-

-

-

-

-

-

106

-

-

106

Tax payments related to shares withheld for share-based  compensation plans

-

-

-

-

-

-

-

(12
)

-

-

(12
)
Stock-based compensation expense

-

-

-

-

-

-

-

1,176

-

-

1,176

Repurchase of Class A common stock

(1,088,086
)

-

-

1,088,086

(1
)

-

-

(5,257
)

-

-

(5,258
)
Retirement of treasury stock

-

-

-

(1,088,086
)

-

-

-

-

-

-

-

Dividends paid

-

-

-

-

-

-

-

(4,441
)

-

-

(4,441
)
Change in fair value of marketable securities

-

-

-

-

-

-

-

-

-

(3
)

(3
)
Foreign currency translation gain (loss)

-

-

-

-

-

-

-

-

-

(550
)

(550
)
Net income (loss) for the three-month period-ended June 30, 2018

-

-

-

-

-

-

-

-

4,840

-

4,840

Balance, June 30, 2018

64,554,155

14,927,613

9,352,729

-

6

2

1

874,508

(537,293
)

(1,562
)

335,662

	Six-Month Period						Six-Month Period
	Ended June 30,						Ended June 30,
	2019			2018			2020			2019
Cash flows from operating activities:
Net income (loss)	$	(14,855	)	$	3,033		$	(33,254	)	$	(14,855	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		8,222			7,958			8,385			8,222
Impairment charge		22,368			-			39,835			22,368
Deferred income taxes		1,472			1,029			(7,398	)		1,472
Non-cash interest		489			538			332			489
Amortization of syndication contracts		249			352			258			249
Payments on syndication contracts		(227	)		(360	)		(253	)		(227	)
Equity in net (income) loss of nonconsolidated affiliate		158			98			-			158
Non-cash stock-based compensation		1,635			2,425			1,592			1,635
(Gain) loss on disposal of property and equipment		161			-			(627	)		161
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		9,619			9,170			19,513			9,619
(Increase) decrease in prepaid expenses and other assets		2,680			(6,547	)		5,090			2,680
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(12,301	)		(780	)		(14,010	)		(12,301	)
Net cash provided by operating activities		19,670			16,916			19,463			19,670
Cash flows from investing activities:
Proceeds from sale of property and equipment and intangibles		-			33			3,989			-
Purchases of property and equipment		(13,982	)		(5,710	)		(5,676	)		(13,982	)
Purchases of intangible assets		-			(3,153	)		(158	)		-
Purchase of a businesses, net of cash acquired		-			(3,563	)
Purchases of marketable securities		(1,160	)		(159,403	)		-			(1,160	)
Proceeds from marketable securities		21,681			25,000			26,860			21,681
Purchases of investments		(300	)		(35	)		-			(300	)
Net cash provided by (used in) investing activities		6,239			(146,831	)		25,015			6,239
Cash flows from financing activities:
Proceeds from stock option exercises		-			106
Tax payments related to shares withheld for share-based compensation plans		(751	)		(2,239	)		(15	)		(751	)
Payments on long-term debt		(1,500	)		(1,500	)		(1,500	)		(1,500	)
Dividends paid		(8,540	)		(8,960	)		(6,322	)		(8,540	)
Repurchase of Class A common stock		(9,008	)		(7,660	)		(525	)		(9,008	)
Payment of contingent consideration		-			(2,015	)
Payments of capitalized debt costs		(225	)		-			-			(225	)
Net cash used in financing activities		(20,024	)		(22,268	)		(8,362	)		(20,024	)
Effect of exchange rates on cash, cash equivalents and restricted cash		13			(10	)		32			13
Net increase (decrease) in cash, cash equivalents and restricted cash		5,898			(152,193	)		36,148			5,898
Cash, cash equivalents and restricted cash:
Beginning		47,465			261,854			33,857			47,465
Ending	$	53,363		$	109,661		$	70,005		$	53,363

Supplemental disclosures of cash flow information:
Cash payments for:
Interest	$	6,555		$	6,861		$	4,372		$	6,555
Income taxes	$	1,873		$	692		$	467		$	1,873

Supplemental disclosures of non-cash investing and financing activities:
Capital expenditures financed through accounts payable, accrued expenses and other liabilities	$	1,530		$	400		$	699		$	1,530
Contingent consideration included in accounts payable, accrued expenses and other liabilities	$	5,743		$	11,280		$	1,641		$	5,743

The consolidated financial statements included herein have been prepared by Entravision Communications Corporation (the “Company”), pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted pursuant to such rules and regulations. These consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, ~~2018~~2019 included in the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2018.~~2019. The unaudited information contained herein has been prepared on the same basis as the Company’s audited consolidated financial statements and, in the opinion of the Company’s management, includes all adjustments (consisting of only normal recurring adjustments) necessary for a fair presentation of the information for the periods presented. The interim results presented herein are not necessarily indicative of the results of operations that may be expected for the full fiscal year ending December 31, ~~2019~~2020 or any other future period.

~~Certain amounts in~~ ~~the Company’s prior year period~~ ~~consolidated financial statements and notes to the financial statements have been reclassified to conform to current period presentation.~~

The Company is a leading global media company that, through its television and radio segments, reaches and engages U.S. Hispanics across acculturation levels and media channels. Additionally, the Company’s digital segment, ~~whose operations are~~ located primarily in Spain, Mexico, Argentina and other countries in Latin America, reaches a global market. Entravision’s operations encompass integrated marketing and media solutions, comprised of television, radio, and digital properties and data analytics services. The Company’s management has determined that the Company operates in ~~three~~3 reportable segments as of June 30, ~~2019,~~2020, based upon the type of advertising medium, which segments are television, radio and digital. As of June 30, ~~2019,~~2020, the Company owns and/or operates 5554 primary television stations located primarily in California, Colorado, Connecticut, Florida, Kansas, Massachusetts, Nevada, New Mexico, Texas and Washington, D.C. The Company’s television operations comprise the largest affiliate group of both the top-ranked primary television network of Univision Communications Inc. (“Univision”) and Univision’s UniMás network. The television segment includes revenue generated from advertising, retransmission consent agreements and the monetization of the Company’s spectrum assets. Radio operations consist of 49 operational radio stations, 38 FM and 11 AM, in 16 markets located in Arizona, California, Colorado, Florida, Nevada, New Mexico and Texas. Entravision also ~~operates Entravision Solutions as its national sales representation division, through which it~~ sells advertisements and ~~syndicated~~syndicate radio programming to more than 100 markets across the United States. The Company operates a proprietary technology and data ~~platform~~platforms that ~~delivers~~deliver digital advertising in various advertising formats that ~~allows~~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.

On March 11, 2020, the World Health Organization (the “WHO”) declared COVID-19 a pandemic. On March 13, 2020, a Presidential proclamation was issued declaring a national emergency in the United States as a result of COVID-19.

The COVID-19 pandemic has affected the Company’s business and, subject to the extent and duration of the pandemic and the continuing economic crisis that has resulted from the pandemic, is anticipated to continue to affect the Company’s business, from both an operational and financial perspective, in future periods.

In the quarter ended June 30, 2020, as the global, U.S. and local economies declined dramatically as a result of lockdown, shelter-in-place and stay-at-home or similar orders, the Company experienced a continuation of the significant cancellations of advertising and a significant decrease in new advertising placements in its television segment and especially its radio segment that the Company had begun to experience during the last half of March 2020. The impact on the Company’s radio segment was significantly greater than on its television segment because radio audiences declined at a much greater rate as a result of fewer people commuting to work or driving in general as a result of lockdown, shelter-in-place, stay-at-home or similar orders throughout the United States that were in effect broadly for most of the quarter ended June 30, 2020.

To partially address this situation, the Company has significantly reduced some of its advertising rates, primarily in its radio segment. The Company has also eased credit terms for certain of its advertising clients to help them manage their own cash flow and address other financial needs.

The Company has engaged in a small number of layoffs and significant number of furloughs of employees as a result of the pandemic, primarily during the quarter ended March 31, 2020 and early in the quarter ended June 30, 2020. The Company will continue to monitor this situation closely and may institute such further layoffs or furloughs as it may feel are appropriate at a future date. It is unclear when the Company may reintroduce furloughed employees to active employment, but this will depend, at least in significant part, on substantial improvement in economic conditions as a whole, as well as the Company’s own results of operations, to pre-pandemic or close to pre-pandemic levels. The Company has elected to defer the employer portion of the social security payroll tax (6.2%) as outlined within the Coronavirus Aid, Relief and Economic Security Act of 2020, commonly known as the CARES Act. The deferral is effective from March 27, 2020 through December 31, 2020. The deferred amount will be paid in two installments and the amount will be considered timely paid if 50% of the deferred amount is paid by December 31, 2021 and the remainder by December 31, 2022. The Company is also reviewing the possibility of applying for some relief under the CARES Act with respect to its furloughed employees, but it has not done so yet and no decision has been made if it will apply for any such relief.

In order to preserve cash during this period, the Company has instituted certain cost reduction measures. On March 26, 2020, the Company suspended repurchases under its share repurchase program. Effective April 16, 2020, the Company instituted a 2.5%-22.5% reduction in salaries company-wide, depending on the amount of then-current compensation. 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% in the present quarter and may consider doing so in future periods. Additionally, effective May 28, 2020, the Board of Directors decreased its annual non-employee director fees by 20% for the Board year ending at the 2021 shareholders meeting. The Company will continue to monitor all of these actions closely in light of current and changing conditions and may institute such additional actions as it may feel are appropriate at a future date.

The Company believes that its liquidity and capital resources remain adequate and that it can meet current expenses for at least the next twelve months from a combination of cash on hand and cash flows from operations.

As of June 30, ~~2019~~2020 and December 31, ~~2018,~~2019, 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.

Substantially all of the Company’s stations are Univision- or UniMás-affiliated television stations. The ~~Company’s~~ network affiliation ~~agreements~~agreement with Univision ~~provide~~provides certain of ~~its~~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 ~~Company’s~~ Univision- and UniMás-affiliate television stations, and itthe Company pays certain sales representation fees to Univision relating to sales of all advertising for broadcast on ~~the Company’s~~its Univision- and UniMás-affiliate television stations. During the three-month periods ended June 30, ~~2019~~2020 and ~~2018,~~2019, the amount the Company paid Univision in this capacity was ~~$2.0~~$1.4 million and ~~$2.2~~$2.0 million, respectively. During the six-month periods ended June 30, ~~2019~~2020 and ~~2018,~~2019, the amount the Company paid Univision in this capacity was $3.6 and $4.0 million, ~~and $4.3 million,~~ respectively.

The Company also generates revenue under ~~two~~2 marketing and sales agreements with Univision, which ~~gives the Company~~give it the right to manage the marketing and sales operations of Univision-owned Univision affiliates in ~~six~~6 markets – Albuquerque, Boston, Denver, Orlando, Tampa and Washington, D.C.

Under the Company’s proxy agreement with Univision, the Company grants Univision the right to negotiate the terms of retransmission consent agreements for its Univision- and UniMás-affiliated television station signals. Among other things, the proxy agreement provides terms relating to compensation to be paid to the Company by Univision with respect to retransmission consent agreements entered into with multichannel video programming distributors, (“MVPDs”). As of June 30, ~~2019,~~2020, the amount due to the Company from Univision was ~~$5.1~~$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 June 30, ~~2019~~2020 and ~~2018,~~2019, retransmission consent revenue accounted for approximately $9.4 and $9.1 million, respectively, of which ~~$7.0~~$6.8 million and ~~$7.5~~$7.0 million, respectively, relate to the Univision proxy agreement. During the six-month periods ended June 30, ~~2019~~2020 and ~~2018,~~2019, retransmission consent revenue accounted for approximately ~~$17.8~~$18.9 million and ~~$18.0~~$17.8 million, respectively, of which ~~$13.7~~$13.8 million and ~~$15.1~~$13.7 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. AsEach share of Class U common stock is automatically convertible into 1 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 ~~will~~may not, without the consent of Univision, merge, consolidate or enter into ~~another~~a business combination, dissolve or liquidate the Company or dispose of any interest in any ~~Federal Communications Commission, or~~ FCC license ~~for any~~with respect to television stations which are affiliates of ~~its Univision-affiliated television stations,~~Univision, among other things. Each share of Class U common stock is automatically convertible into one share of Class A common stock (subject to adjustment for stock splits, dividends or combinations) in connection with any transfer to a third party that is not an affiliate of Univision.

The Company measures all stock-based awards using a fair value method and recognizes the related stock-based compensation expense in the consolidated financial statements over the requisite service period. As stock-based compensation expense recognized in the Company’s consolidated financial statements is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures.

Stock-based compensation expense related to grants of stock options and restricted stock units was $0.8 million ~~and $1.2 million~~ for each of the three-month periods ended June 30, ~~2019~~2020 and ~~2018, respectively.~~ 2019.Stock-based compensation expense related to grants of stock options and restricted stock units was $1.6 million ~~and $2.4 million~~ for each of the six-month periods ended June 30, ~~2019~~2020 and ~~2018, respectively.~~ 2019.

Stock-based compensation expense related to stock options is based on the fair value on the date of grant using the Black-Scholes option pricing model and is amortized over the vesting period, generally between 1 to 4 years.

As of June 30, ~~2019,~~2020, there was ~~de minimis~~0 stock-based compensation expense related to grants of stock options. All grants of stock options have been fully expensed.

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.

The following is a summary of non-vested restricted stock units granted (in thousands, except grant date fair value data):

As of June 30, ~~2019,~~2020, there was approximately ~~$3.1~~$2.7 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 1.3 years.

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					Six-Month Period					Three-Month Period					Six-Month Period
	Ended June 30,					Ended June 30,					Ended June 30,					Ended June 30,
	2019			2018		2019			2018		2020		2019			2020			2019
Basic earnings per share:
Numerator:
Net income (loss)	$	(16,279	)	$	4,840	$	(14,855	)	$	3,033	$	2,338	$	(16,279	)	$	(33,254	)	$	(14,855	)

Denominator:
Weighted average common shares outstanding		85,359,998			88,959,935		85,728,820			89,635,759		84,123,530		85,359,998			84,220,649			85,728,820

Per share:
Net income (loss) per share	$	(0.19	)	$	0.05	$	(0.17	)	$	0.03	$	0.03	$	(0.19	)	$	(0.39	)	$	(0.17	)

Diluted earnings per share:
Numerator:
Net income (loss)	$	(16,279	)	$	4,840	$	(14,855	)	$	3,033	$	2,338	$	(16,279	)	$	(33,254	)	$	(14,855	)

Denominator:
Weighted average common shares outstanding		85,359,998			88,959,935		85,728,820			89,635,759		84,123,530		85,359,998			84,220,649			85,728,820
Dilutive securities:
Stock options and restricted stock units	-				1,062,014		-			1,169,327		545,720		-			-			-
Diluted shares outstanding		85,359,998			90,021,949		85,728,820			90,805,086		84,669,250		85,359,998			84,220,649			85,728,820

Per share:
Net income (loss) per share	$	(0.19	)	$	0.05	$	(0.17	)	$	0.03	$	0.03	$	(0.19	)	$	(0.39	)	$	(0.17	)

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 June 30, 2020, a total of 519,690 shares of dilutive securities were not included in the computation of diluted income per share because the exercise prices of the dilutive securities were greater than the average market price of the common shares. For the six-month period ended June 30, 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 602,774 equivalent shares of dilutive securities for the six-month period ended June 30, 2020.

For the three- and six-month periods ended June 30, 2019, all dilutive securities have been excluded as their inclusion would have had an antidilutive effect on loss per share. The number of securities whose conversion would result in an incremental number of shares that would be included in determining the weighted average shares outstanding for diluted earnings per share if their effect was not antidilutive was 952,026 and 1,001,636 equivalent shares of dilutive securities for the three- and six-month periods ended June 30, 2019, respectively.

For the three- and six-month periods ended June 30, 2018, a total of 242,735 and 139,468 shares of dilutive securities, respectively, were not included in the computation of diluted income per share because the exercise prices of the dilutive securities were greater than the average market price of the common shares.

The Company has identified each of its ~~three~~3 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 ~~of the last annual testing date, October 1, 2018, and as~~ noted in the Annual Report on Form 10-K for the year ended December 31, ~~2018,~~2019, the Company ~~determined there was no~~recorded impairment tocharges of goodwill ~~and indefinite life intangibles for any of~~in its ~~reporting units.~~

~~Due to lower than anticipated performance of the Company’s~~ digital reporting unit totaling $27.7 million during the year ended December 31, 2019. In addition, the Company recorded impairment charges of FCC licenses in its television and radio reporting units in the ~~second~~amount of $4.0 million and $0.2 million, respectively, during the year ended December 31, 2019.

Due to the continuing economic crisis resulting from the COVID-19 pandemic, the Company experienced a decline in performance across all its reporting units beginning late in the first quarter of ~~2019,~~2020. Additionally, the digital reporting unit was already facing declining results prior to the onset of the pandemic, caused by continuing competitive pressures and rapid changes in ~~key personnel,~~the digital advertising industry, which then further accelerated late in the quarter as a result of the economic crisis brought about from the pandemic. The results of the television and radio reporting units prior to the onset of the pandemic and the resulting economic crisis were exceeding internal budgets, driven in large part by political advertising revenue, but declined sharply in the last few weeks of the first quarter. As a result, the Company updated its internal forecasts of future performance and determined that triggering events had occurred during the first quarter of ~~the digital reporting unit, the~~2020 that required interim impairment assessments. The Company determined that no triggering events had occurred during the second quarter of ~~2019~~2020 that required an interim impairment ~~assessment for its digital reporting unit.~~assessments events.

The Company conducted a review of the fair value of the television and digital reporting ~~unit~~units in the ~~second~~first quarter of ~~2019.~~2020. Although the radio unit also experienced declines, there is 0 goodwill in the radio reporting unit. The estimated fair value of ~~the digital goodwill~~each reporting unit assessed was determined by using a combination of a market approach and an income approach. The market approach estimates fair value by applying sales, earnings and cash flow multiples to the reporting unit’s operating performance. The multiples are derived from comparable publicly-traded companies with similar operating and investment characteristics to the Company’s ~~digital~~ reporting ~~unit.~~units. The market approach requires the Company to make a series of assumptions, such as selecting comparable companies and comparable transactions and transaction premiums.

The income approach estimates fair value based on the estimated future cash flows of ~~the digital~~each reporting unit, discounted by an estimated weighted-average cost of capital that reflects current market conditions, which reflect the overall level of inherent risk of the reporting unit. The income approach also requires the Company to make a series of assumptions, such as discount rates, revenue projections, profit margin projections and terminal value multiples. The Company estimated the discount rate on a blended rate of return considering both debt and equity for comparable publicly-traded companies in the television and digital media ~~industry.~~industries. These comparable publicly-traded companies have similar size, operating characteristics and/or financial profiles to the Company’s ~~digital~~ reporting ~~unit.~~units. The Company also estimated the terminal value multiple based on comparable publicly-traded companies in the television and digital media ~~industry.~~industries. The Company estimated its revenue projections and profit margin projections based on internal forecasts about future performance.

Based on the assumptions and estimates described above, the Company concluded that the digital reporting unit carrying value exceeded its fair value, resulting in a goodwill impairment charge of ~~$22.4~~$0.8 million for the three-month period ended March 31, 2020. The fair value of the Company’s television reporting unit exceeded its carrying value by 28%, resulting in 0 impairment charge. NaN impairment charges of goodwill were recorded during the ~~quarter~~three-month period ended June 30, ~~2019~~.2020.

The carrying amount of goodwill for each of the Company’s operating segments for the six-months ended June 30, ~~2019~~2020 is as follows (in thousands):

	December 31, 2018		Currency			Impairment			June 30, 2019		December 31, 2019		Currency		Impairment			June 30, 2020
Television	$	40,549		-			-		$	40,549	$	40,549		-		-		$	40,549
Radio		-		-			-			-		-		-		-			-
Digital		33,743		(67	)		(22,368	)		11,308		5,962		-		(800	)		5,162
Consolidated	$	74,292	$	(67	)	$	(22,368	)	$	51,857	$	46,511	$	-	$	(800	)	$	45,711

The Company also conducted a review of certain of the indefinite life intangible assets in its television and radio reporting units using an income approach during the three-month period ended March 31, 2020. The income approach estimates fair value based on the estimated future cash flows of the station that a hypothetical buyer would expect to generate, discounted by an estimated weighted-average cost of capital that reflects current market conditions, which reflect the overall level of inherent risk. The income approach requires the Company to make a series of assumptions, such as discount rates, revenue projections, and profit margin projections. The Company estimates the discount rates on a blended rate of return considering both debt and equity for comparable publicly-traded companies in the television industry. These comparable publicly-traded companies have similar size, operating characteristics and/or financial profiles to the Company. The Company estimated the revenue projections and profit margin projections based on industry information for an average station within the market, as adjusted by the Company to reflect current market conditions. The information includes such things as estimated market share, estimated capital start-up costs, population, household income, retail sales and other expenditures that would influence advertising expenditures.

Based on the assumptions and estimates described above, the carrying values of certain FCC licenses exceeded their fair values. As a result, the Company recorded impairment charges of FCC licenses in its television and radio reporting units in the amount of $23.5 million and $8.8 million, respectively, during the three-month period ended March 31, 2020. NaN impairment charges of FCC licenses were recorded during the three-month period ended June 30, 2020.

The carrying amount of intangible assets not subject to amortization for each of the Company’s operating segments for the six-months ended June 30, 2020 is as follows (in thousands):

The Company also conducted a review of certain of its long-lived assets using a two-step approach during the three-month period ended March 31, 2020. In the first step, the carrying value of the asset group is compared to the projected undiscounted cash flows to determine recoverability. If the asset carrying value is not recoverable, then the fair value of the asset group is determined in the second step using an income approach. The income approach requires the Company to make a series of assumptions, such as discount rates, revenue projections, profit margin projections and useful lives.

Based on the assumptions and estimates described above, the carrying values of long-lived assets in the digital reporting unit exceeded their fair values. As a result, the Company recorded impairment charges related to Intangibles subject to amortization of $5.3 million, and property and equipment of $1.5 million, during the three-month period ended March 31, 2020. NaN impairment charges related to Intangibles subject to amortization were recorded during the three-month period ended June 30, 2020.

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. On April 11, 2018, the 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. On August 27, 2019, the Board of Directors approved the repurchase of up to an additional $15.0 million of the Company’s Class A common stock, for a total repurchase authorization of up to $45.0 million. Under the share repurchase program, the Company is authorized to purchase shares from time to time through open market purchases or negotiated purchases, subject to market conditions and other factors. The share repurchase program may be suspended or discontinued at any time without prior notice. On March 26, 2020, the Company suspended share repurchases under the plansin order to preserve cash during the continuing economic crisis resulting from the COVID-19 pandemic.

Treasury stock is included as a deduction from equity in the Stockholders’ Equity section of the Unaudited Consolidated Balance Sheets. Shares repurchased pursuant to the Company’s share repurchase program are retired during the same calendar year.

~~The Company repurchased 0.4 million shares of Class A common stock at an average price of $2.95, for an aggregate purchase price of approximately $1.3 million, during~~During the three-month period ended June 30, ~~2019.~~2020, the Company did 0t repurchase any shares of Class A common stock. As of June 30, ~~2019,~~2020, the Company has repurchased a total of approximately ~~7.0~~8.6 million shares of Class A common stock, for an aggregate purchase price of approximately ~~$28.1~~$32.2 million, or an average price per share of ~~$3.98,~~$3.76, since the beginning of the share repurchase program. ~~All~~As of June 30, 2020, all such repurchased shares were ~~retired as of June 30, 2019.~~retired.

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 ~~(a)~~ repay in full all of the Company’s and its subsidiaries’ outstanding obligations under the Company’s previous credit facility ~~(“2013 Credit Facility”)~~ and to terminate the ~~2013~~credit agreement relating thereto (the “2013 Credit ~~Agreement,~~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 ~~its~~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”).

In the event the Company engages in a transaction that has the effect of reducing the yield of any loans outstanding under the Term Loan B Facility within six months of the Closing Date, the Company will owe 1% of the amount of the loans so repriced or replaced to the Lenders thereof (such fee, the “Repricing Fee”). Other than the Repricing Fee, theThe amounts outstanding under the 2017 Credit Facility may be prepaid at the Company’s option without premium or penalty, provided that certain limitations are observed, and subject to customary breakage fees in connection with the prepayment of a ~~Eurodollar~~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:

The 2017 Credit Facility also provides for certain customary events of default, including the following:

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. ~~Pursuant to this amendment, the lenders:~~

On May 7, 2019, the Company filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2018, which Annual Report contained the 2018 audited financial statements. By filing its Annual Report on Form 10-K prior to May 31, 2019, the Company believes that it has complied with the affirmative covenants in the amendment to the 2017 Credit Agreement regarding delivery of the 2018 audited financial statements.

Pursuant to this amendment, the Company agreed to pay to the lenders consenting to this amendment a fee equal to 0.10% of the aggregate principal amount of the outstanding loans held by such lenders under the 2017 Credit Agreement as of May 1, 2019. This fee totaled approximately $0.2 million.

The carrying amount of the Term Loan B Facility as of June 30, ~~2019~~ 2020 was $~~242.0~~214.7 million, net of ~~$2.7~~$2.0 million of unamortized debt issuance costs and original issue discount. The estimated fair value of the Term Loan B Facility as of June 30, ~~2019~~ 2020 was approximately $~~233.7~~214.0 million. The estimated fair value is based on quoted prices in markets where trading occurs infrequently.

As of June 30, 2020, the Company believes that it is in compliance with all covenants in the 2017 Credit Agreement.

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):

	June 30, 2019									June 30, 2020
	Total Fair Value									Total Fair Value
	and Carrying									and Carrying
	Value on Balance		Fair Value Measurement Category							Value on Balance		Fair Value Measurement Category
(in millions)	Sheet		Level 1		Level 2			Level 3		Sheet		Level 1		Level 2			Level 3
Assets:
Money market account	$	37.2	$	-	$	37.2		$	-	$	37.4	$	-	$	37.4		$	-
Certificates of deposit	$	7.8	$	-	$	7.8		$	-	$	4.5	$	-	$	4.5		$	-
Corporate bonds	$	105.6	$	-	$		105.6	$	-	$	60.6	$	-	$		60.6	$	-

Liabilities:
Contingent Consideration	$	5.7	$	-	$		-	$	5.7

	December 31, 2018									December 31, 2019
	Total Fair Value									Total Fair Value
	and Carrying									and Carrying
	Value on Balance		Fair Value Measurement Category							Value on Balance		Fair Value Measurement Category
	Sheet		Level 1		Level 2			Level 3		Sheet		Level 1		Level 2			Level 3
Assets:
Money market account	$	34.6	$	-	$	34.6		$	-	$	21.3	$	-	$	21.3		$	-
Certificates of deposit	$	8.2	$	-	$	8.2		$	-	$	6.1	$	-	$	6.1		$	-
Corporate bonds	$	124.2	$	-	$	124.2		$	-	$	85.6	$	-	$	85.6		$	-

Liabilities:
Contingent Consideration	$	8.1	$	-	$	-		$	8.1

As of June 30, ~~2019,~~2020, the Company held investments in a money market fund, certificates of deposit and corporate bonds. All certificates of deposit are within the current FDIC insurance limits and all corporate bonds are investment grade.

The Company’s available for sale securities are comprised of certificates of deposit and bonds. These securities are valued using quoted prices for similar attributes in active markets (Level 2). Since these investments are classified as available for sale, they are recorded at their fair market value within Cash and cash equivalents and Marketable securities in the Unaudited Consolidated Balance Sheets and their unrealized gains or losses are included in other comprehensive income.

As of June 30, ~~2019,~~2020, the following table summarizes the amortized cost and the unrealized (gains) losses of the available for sale securities (in thousands):

	Certificates of Deposit				Corporate Bonds				Certificates of Deposit				Corporate Bonds
	Amortized Cost		Unrealized gains (losses)		Amortized Cost		Unrealized gains (losses)		Amortized Cost		Unrealized gains (losses)		Amortized Cost		Unrealized gains (losses)
Due within a year	$	2,880	$	1	$	29,997	$	41	$	4,402	$	66	$	49,958	$	458
Due after one year through five years		4,882		19		75,206		323		-		-		9,928		286
Total	$	7,762	$	20	$	105,203	$	364	$	4,402	$	66	$	59,886	$	744

The ~~Company periodically reviews its~~Company’s available for sale debt securities are considered for ~~other-than-temporary impairment. For~~credit losses under the ~~three- and six-month periods ended~~guidance of Accounting Standards Update (“ASU”) 2016-13, Financial Instruments—Credit Losses (Topic 326), which the Company adopted on January 1, 2020. As of June 30, ~~2019,~~2020, the Company ~~did~~determined that a credit loss allowance is not ~~consider any of its securities~~required. Refer to ~~be other-than-temporarily impaired and, accordingly, did not recognize any impairment losses.~~“Newly Adopted Accounting Standards” discussion below.

Included in interest income for the three- and six-month periods ended June 30, ~~2019~~2020 was interest income related to the Company’s available-for-sale securities of ~~$0.8~~$0.5 million and ~~$1.7~~$1.0 million, respectively.

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- and six-month periods ended June 30, ~~2019~~ ~~(in~~2020 (in millions):

	Foreign Currency Translation			Marketable Securities			Total			Foreign Currency Translation			Marketable Securities			Total
Accumulated other comprehensive income (loss) as of December 31, 2018	$	(0.4	)	$	(1.0	)	$	(1.4	)
Accumulated other comprehensive income (loss) as of December 31, 2019										$	(0.5	)	$	0.4		$	(0.1	)
Other comprehensive income (loss)		-			1.0			1.0			(0.2	)		(0.3	)		(0.5	)
Income tax (expense) benefit		-			(0.2	)		(0.2	)		-			0.1			0.1
Other comprehensive income (loss), net of tax		-			0.8			0.8			(0.2	)		(0.2	)		(0.4	)
Accumulated other comprehensive income (loss) as of March 31, 2019		(0.4	)		(0.2	)		(0.6	)
Accumulated other comprehensive income (loss) as of March 31, 2020											(0.7	)		0.2			(0.5	)
Other comprehensive income (loss)		(0.3	)		0.7			0.4			0.5			0.7			1.2
Income tax (expense) benefit		-			(0.2	)		(0.2	)		-			(0.2	)		(0.2	)
Other comprehensive income (loss), net of tax		(0.3	)		0.5			0.2			0.5			0.5			1.0
Accumulated other comprehensive income (loss) as of June 30, 2019		(0.7	)		0.3			(0.4	)

Accumulated other comprehensive income (loss) as of June 30, 2020											(0.2	)		0.7			0.5

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~~peso to U.S. dollar.

Cost of revenue related to the Company’s digital segment consists primarily of the costs of online media acquired from third-party publishers.

Assets are classified as held for sale when the carrying value is expected to be recovered through a sale rather than through their continued use and all of the necessary classification criteria have been met. Assets held for sale are recorded at the lower of their carrying value or estimated fair value less selling costs and classified as current assets. Depreciation is not recorded on assets classified as held for sale.

During the ~~second~~third quarter of ~~2018,~~2019, the Company ~~relocated~~entered into an agreement to sell a vacated building that previously housed the operations of ~~two~~2 of its television stations in the Palm Springs, California market, ~~and management approved the sale of the vacated building.~~for $1.0 million. The building and related improvements met the criteria for classification as assets held for sale and their carrying value is presented separately in the consolidated balance ~~sheet. As~~sheet as of June 30, ~~2019,~~2020. Due to certain government approval delays resulting from the COVID-19 pandemic, the Company ~~adjusted the selling price to current market conditions and believes~~anticipates that the ~~long-lived asset continues~~transaction will close in the second half of 2020.

On January 22, 2020, the Company entered into an agreement with ION Media Stations, Inc. to ~~meet~~sell television station KMCC-TV, serving the Las Vegas area, for $4.0 million. The transaction met the criteria for classification as ~~an asset held for sale. Assets~~assets held for sale ~~are classified~~ as ~~current~~of March 31, 2020 and closed on April 2, 2020. The resulting gain of $0.6 million is included in other operating gain in the consolidated statements of operation.

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 separately in the consolidated balance sheetas ~~management believes~~of June 30, 2020. 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 2020.

During the first quarter of 2020, the Company listed for sale ~~will be completed within one year.~~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 separately in the consolidated balance sheet as of June 30, 2020.

In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, as part of its Simplification Initiative to reduce the cost and complexity in accounting for income taxes. ASU 2019-12 removes certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also amends other aspects of the guidance to help simplify and promote consistent application of GAAP. ASU 2019-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. We are currently evaluating the impact of the new guidance on our consolidated financial statements.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 provides optional guidance for a limited time to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. We are currently evaluating the impact of the new guidance on our consolidated financial statements.

In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this update. The amendments in this update are effective for annual reporting periods beginning after December 15, 2019, including interim periods within those fiscal years. ~~Early adoption is permitted. The amendments in this update should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption.~~ The Company ~~is in~~adopted ASU 2018-15 on January 1, 2020 which did not have a material impact on the ~~process of assessing the impact of this ASU on its Consolidated Financial Statements.~~Company’s condensed consolidated financial statements and related disclosures.

In August 2018, the FASB issued ASU ~~No.~~ 2018-13, ~~“Fair~~Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement~~” (“~~. ASU ~~No. 2018-13”), which~~ 2018-13 modifies the disclosure requirements on fair value measurements ~~including~~by requiring that Level 3 fair value disclosures include the ~~consideration~~range and weighted average of ~~costs~~significant unobservable inputs used to develop those fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and ~~benefits.~~rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. The Company adopted ASU 2018-13 ~~is effective for all entities for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, but entities are permitted to early adopt either~~on January 1, 2020 which did not have an impact on the ~~entire standard or only~~Company’s financial statements and related disclosures since the ~~provisions that eliminate or modify the requirements. The~~ Company ~~is in the process of assessing the impact of this ASU on its Consolidated Financial Statements.~~does not have any Level 3 financial assets.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326), ~~which amends current guidance on other-than-temporary impairments of available-for-sale debt securities. This amended standard requires~~. ASU 2016-13 makes significant changes to the ~~use of an allowance to record estimated~~accounting for credit losses on ~~these assets when the fair value is below the~~financial instruments presented on an amortized cost basis and disclosures about them. The new current expected credit loss (“CECL”) impairment model requires an estimate of expected credit losses, measured over the ~~asset. This~~contractual life of an instrument, which considers reasonable and supportable forecasts of future economic conditions in addition to information about past events and current conditions. The standard ~~also removes~~provides significant flexibility and requires a high degree of judgment with regards to pooling financial assets with similar risk characteristics and adjusting the ~~evaluation~~relevant historical loss information in order to develop an estimate of the length of time that a security has been in a loss position to avoid recording a credit loss. The update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years.expected lifetime losses. The Company ~~is in the process of assessing the impact of this ASU on~~evaluated its ~~Consolidated Financial Statements.~~

~~In February 2016, the FASB issued ASU 2016-02,~~ ~~Leases (Topic 842), which increases transparency~~financial instruments and ~~comparability among organizations relating~~determined that its trade accounts receivables are subject to leases. Lessees are required to recognize a liability to make lease payments and a right-of-use asset representing the right to use the underlying asset for the lease term. The FASB retained a dual model for lease classification, requiring leases to be classified as finance or operating leases to determine recognition in the earnings statement and cash flows; however, substantially all leases are required to be recognized on the balance sheet. ASU 2016-02 also requires quantitative and qualitative disclosures regarding key information about leasing arrangements. ASU 2016-02 is effective using a modified retrospective approach for fiscal years and interim periods beginning after December 15, 2018. This standard allowed entities to initially apply the new ~~leases standard at~~current expected credit loss model and the ~~adoption date and recognize a cumulative-effect adjustment~~Company’s available for sale debt securities are subject to the ~~opening balance of retained earnings in the period of adoption. The standard also provides for certain practical expedients.~~ new modified credit impairment guidance.

The Company adopted ~~this~~ ASU in2016-13 on January 1, 2020 using the ~~first quarter of 2019. As permitted under the transition guidance~~modified retrospective approach. Adoption of the new standard the Company applied the guidance on a prospective basis as of the adoption date. As a result, prior period amounts were not adjusted and continue to be reported in accordance with accounting guidance under ASC 840.

The Company elected the package of practical expedients such that the Company did not reassess whether any expired or existing contracts are or contain leases. In addition, the Company did not reassess prior conclusions reached for lease classification and did not reassess initial direct costs for existing leases.

Based on the Company’s assessment, the adoption of the guidance resulted in a material impact on the Company’s consolidated balance sheet. However, the impact to the Company’s results of operations and cash flows through June 30, 2019 are not considered material. As of the adoption date, the Company recognized right-of-use (“ROU”) assets of $45.8 million and lease liabilities of $52.4 million. The difference between the ROU assets and lease liabilities is attributed to deferred rent and lease incentives which were combined and presented net within the ROU assets. Refer to Note 4 for additional information.

~~In June 2018, the FASB issued ASU 2018-07,~~ ~~Compensation—Stock Compensation (Topic 718): Improvements to Non-employee Share-based Payment Accounting~~, which supersedes Subtopic 505-50, Equity—Equity-Based Payments to Non-Employees and expands the scope of ASC Topic 718, “Compensation—Stock Compensation” to include share-based payments issued to nonemployees for goods and services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The Company adopted this ASU in the first quarter of 2019 which did not have a material impact on our ~~condensed~~ consolidated financial ~~statements and related disclosures.~~statements.

~~In August 2018,~~The allowance for doubtful accounts is based on the SEC issued a final rule to amend certain disclosure requirements that were redundant, duplicative, overlapping or superseded by other SEC disclosure requirements, US GAAP or IFRS.2 The amendments generally eliminated or otherwise reduced certain disclosure requirementsCompany’s assessment of ~~various SEC rules and regulations. However, in some cases,~~ the ~~amendments require additional information to be disclosed, including changes in stockholders’ equity in interim periods.~~collectibility of customer accounts. The Company ~~adopted~~regularly reviews the ~~rule~~allowance by considering factors such as historical experience, credit quality, the age of the accounts receivable balances, and current economic conditions that may affect a customer’s ability to pay.

The Company's exposure to credit losses may increase if its customers are adversely affected by changes such as economic pressures or uncertainty associated with local or global economic recessions, disruptions associated with the current COVID-19 pandemic, or other customer-specific factors. Although the Company has historically not experienced significant credit losses, it will continue to regularly review the allowance and make necessary adjustments accordingly.

ASU 2016-13 made changes to the accounting for available for sale debt securities. Under the new guidance, at each reporting date, entities must evaluate their individual available for sale debt securities that are in an unrealized loss position and determine whether the ~~first quarter~~decline in fair value below the amortized cost basis results from a credit loss or other factors. The amount of ~~2019~~the decline related to credit losses are recorded as a credit loss expense in earnings with a corresponding allowance for credit losses, and ~~included~~the amount of the decline not related to credit losses are recorded through other comprehensive income, net of tax.

As of the adoption date on January 1, 2020, the Company applied the new credit impairment guidance for available for sale debt securities on a ~~statement~~prospective basis. Adoption of ~~stockholders’ equity in~~the new standard did not have a material impact on our ~~Form 10-Q.~~ consolidated financial statements. Refer to “Fair Value Measurements” discussion above.

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:

Broadcast and digital advertising revenue is recognized over time in a series as a single performance obligation as the ~~ad,~~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 multichannel video programming distributors, or MVPDs. The Company grants the MVPDs access to its television station signals so that they may rebroadcast the signals and charge their subscribers for this programming. Payments are received on a monthly basis based on the number of monthly subscribers.

Retransmission consent revenues are considered licenses of functional intellectual property and are recognized over time utilizing the sale-based or usage-based royalty exception. The Company’s performance obligation is to provide the licensee access to our intellectual property. MVPD subscribers receive and consume the content monthly as the television signal is delivered.

Spectrum Usage Rights. The Company generates revenue from agreements associated with its television stations’ spectrum usage rights from a variety of sources, including but not limited to agreements with third parties to utilize excess spectrum for the broadcast of their multicast networks; charging fees to accommodate the operations of third parties, including moving channel positions or accepting interference with broadcasting operations; and modifying and/or relinquishing spectrum usage rights while continuing to broadcast through channel sharing or other arrangements.

Revenue generated by spectrum usage rights agreements are recognized over the period of the lease or when ~~we have~~the Company has relinquished all or a portion of ~~our~~its spectrum usage rights for a station or ~~have~~has relinquished ~~our~~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~~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~~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.

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.

The following table presents our revenues disaggregated by major source for the ~~three- and six-month~~three-month periods ended (in thousands):

	Three-Month Period				Six-Month Period				Three-Month Period				Six-Month Period
	Ended June 30,				Ended June 30,				Ended June 30,				Ended June 30,
	2019		2018		2019		2018		2020		2019		2020		2019
Broadcast advertising	$	37,237	$	41,533	$	71,945	$	79,242	$	22,589	$	37,237	$	61,317	$	71,945
Digital advertising		16,804		20,558		31,276		38,802		11,373		16,804		24,704		31,276
Spectrum usage rights		3,952		523		9,036		631		1,356		3,952		2,712		9,036
Retransmission consent		9,086		9,143		17,846		17,996		9,362		9,086		18,942		17,846
Other		2,162		2,572		3,818		4,496		436		2,162		1,690		3,818
Total revenue	$	69,241	$	74,329	$	133,921	$	141,167	$	45,116	$	69,241	$	109,365	$	133,921

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- and six-month~~three-month periods ended (in thousands):

	Three-Month Period				Six-Month Period				Three-Month Period				Six-Month Period
	Ended June 30,				Ended June 30,				Ended June 30,				Ended June 30,
	2019		2018		2019		2018		2020		2019		2020		2019
Local direct	$	6,456	$	7,059	$	12,511	$	13,975	$	4,093	$	6,456	$	9,936	$	12,511
Local agency		14,966		15,521		28,666		30,114		7,873		14,966		21,439		28,666
National agency		15,815		18,953		30,768		35,153		10,623		15,815		29,942		30,768
Total revenue	$	37,237	$	41,533	$	71,945	$	79,242	$	22,589	$	37,237	$	61,317	$	71,945

The Company records deferred revenues, 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 its performance, including amounts which are refundable. The decrease in the deferred revenue balance for the six-month period ended June 30, ~~2019~~2020 is primarily driven by cash payments received or due in advance of satisfying the Company’s performance obligations, offset by revenues recognized that were included in the deferred revenue balance as of December 31, ~~2018.~~2019.

The Company’s payment terms vary by the type and location of customer and the products or services offered. The term between invoicing and when payment is due is not significant, typically 30 days. For certain customer types, the Company requires payment before the services are delivered to the customer.

(in thousands)

December 31, 2018

Increase

Decrease *

June 30, 2019

December 31,

2019

Increase

Decrease *

June 30,

2020

Deferred revenue

2,759

1,593

(2,759

)

1,593

2,390

1,660

(2,390

)

1,660

The Company’s leases are considered operating leases and primarily consist of real estate such as office space, broadcasting towers, land and land easements. ~~ROU~~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~~Company’s having a centralized treasury function, the Company applied a portfolio approach to discount its domestic lease obligations using its secured publicly traded U.S. dollar denominated debt instruments interpolating the duration of the debt to the remaining lease term. The incremental borrowing rate for international leases is the interest rate that the Company would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.

The Company’s operating leases are reflected within the consolidated balance sheet as right-of-use assets with the related liability presented as lease liability, current and lease liability, net of current portion. Lease expense is recognized on a straight-line basis over the lease term.

Generally, lease terms include options to renew or extend the lease. Unless the renewal option is considered reasonably certain, the exercise of any such options have been excluded from the calculation of lease liabilities. In addition, as permitted within the guidance, ROU assets and lease liabilities are not recorded for leases within an initial term of one year or less. The Company’s existing leases have remaining terms of less than one year up to 3231 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 June 30, ~~2019:~~2020:

(in thousands)
Remainder of 2019	$	5,747
2020		11,620
Remainder of 2020				$	5,434
2021		9,222			8,720
2022		7,788			7,436
2023		6,177			5,874
2024 and thereafter		36,646
2024					4,946
2025 and thereafter					20,094
Total minimum payments	$	77,200		$	52,504
Less amounts representing interest		(29,048	)		(11,890	)
Present value of minimum lease payments	$	48,152			40,614
Less current operating lease liabilities					(7,830	)
Long-term operating lease liabilities				$	32,784

The weighted average remaining lease term and the weighted average discount rate used to calculate the Company’s lease liabilities as of June 30, ~~2019~~2020 were ~~14.0~~10.4 years and 6.2%, respectively.

The following table summarizes lease payments and supplemental non-cash disclosures for the six-month period ended June 30, ~~2019:~~2020:

(in thousands)	Six-Month Period Ended June 30, 2019		Six-Month Period Ended June 30, 2020
Cash paid for amounts included in lease liabilities:

Operating cash flows from operating leases	$	2,910	$	6,371
Non-cash additions to operating lease assets	$	4,359	$	25

~~The tables below summarize our future minimum rental commitments for operating leases as of December 31, 2018:~~

The following table summarizes the components of lease expense for the three- and six-months periods ended June 30, ~~2019:~~2020:

	Three-Month Period		Six-Month Period		Three-Month Period		Three-Month Period		Six-Month Period		Six-Month Period
	Ended June 30,		Ended June 30,		Ended June 30,		Ended June 30,		Ended June 30,		Ended June 30,
(in thousands)	2019		2019		2020		2019		2020		2019
Operating lease cost	$	2,560	$	4,957	$	2,369	$	2,560	$	5,042	$	4,957
Variable lease cost	369		790			35		369		332		790
Short-term lease cost	182		289			216	182		434		289
Total lease cost	$	3,111	$	6,036	$	2,620	$	3,111	$	5,808	$	6,036

For the three-month period ended June 30, 2020, lease cost of $1.4 million, $1.0 million and $0.2 million, were recorded to direct operating expenses, selling, general and administrative expenses and corporate expenses, respectively. For the six-month periods ended June 30, 2020 lease cost of $3.0 million, $2.4 million and $0.4 million, were recorded to direct operating expenses, selling, general and administrative expenses and corporate expenses, respectively.

For the three-month periods ended June 30, 2019 lease cost of $1.4 million, $1.6 million and $0.1 million, were recorded to direct operating expenses, selling, general and administrative expenses and corporate expenses, respectively. For the six-month periods ended June 30, 2019 lease cost of $2.7 million, $3.0 million and $0.3 million, were recorded to direct operating expenses, selling, general and administrative expenses and corporate expenses, respectively.

The Company’s management has determined that the Company operates in ~~three~~3 reportable segments as of June 30, ~~2019,~~2020, based upon the type of advertising medium, which segments are television, radio and digital. The Company’s segments results reflect information presented on the same basis that is used for internal management reporting and it is also how the chief operating decision maker evaluates the business.

~~The~~As of June 30, 2020, the Company owns and/or operates 5554 primary television stations located primarily in California, Colorado, Connecticut, Florida, Kansas, Massachusetts, Nevada, New Mexico, Texas and Washington, D.C.

~~The~~As of June 30, 2020, the Company owns and operates 49 radio stations (38 FM and 11 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 than 100 markets across the United States.

The Company operates a proprietary technology and data ~~platform~~platforms that ~~delivers~~deliver digital advertising in various advertising formats ~~that allows~~and which allow advertisers to reach audiences across a wide range of Internet-connected devices on ~~its~~the Company’s 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.

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 ~~17%~~18% and ~~20%~~17% of its revenue outside the United States during the three-month periods ended June 30, ~~2019~~2020 and ~~June 30, 2018,~~2019, respectively. The Company generated ~~16%~~15% and ~~19%~~16% of its revenue outside the United States during the six-month periods ended June 30, ~~2019~~2020 and ~~June 30, 2018,~~2019, respectively. The Company evaluates the performance of its operating segments based on the following (in thousands):

	Three-Month Period									Six-Month Period									Three-Month Period									Six-Month Period
	Ended June 30,						%			Ended June 30,						%			Ended June 30,						%			Ended June 30,						%
		2019			2018		Change				2019			2018		Change				2020			2019		Change				2020			2019		Change
Net revenue
Television	$	38,071		$	36,531			4	%	$	76,324		$	71,022			7	%	$	26,955		$	38,071			(29	)%	$	66,154		$	76,324			(13	)%
Digital																				11,373			16,804			(32	)%		24,704			31,276			(21	)%
Radio		14,366			17,240			(17	)%		26,321			31,343			(16	)%		6,788			14,366			(53	)%		18,507			26,321			(30	)%
Digital		16,804			20,558			(18	)%		31,276			38,802			(19	)%
Consolidated		69,241			74,329			(7	)%		133,921			141,167			(5	)%		45,116			69,241			(35	)%		109,365			133,921			(18	)%

Cost of revenue - digital media		8,859			11,384			(22	)%		16,501			22,009			(25	)%		6,447			8,859			(27	)%		13,794			16,501			(16	)%

Direct operating expenses
Television		15,157			15,038			1	%		30,084			30,588			(2	)%		13,058			15,157			(14	)%		28,883			30,084			(4	)%
Digital																				2,943			4,970			(41	)%		6,136			9,465			(35	)%
Radio		9,528			10,935			(13	)%		19,036			21,609			(12	)%		6,139			9,528			(36	)%		13,800			19,036			(28	)%
Digital		4,970			5,144			(3	)%		9,465			9,953			(5	)%
Consolidated		29,655			31,117			(5	)%		58,585			62,150			(6	)%		22,140			29,655			(25	)%		48,819			58,585			(17	)%

Selling, general and administrative expenses
Television		5,634			5,551			1	%		11,448			11,523			(1	)%		4,678			5,634			(17	)%		10,610			11,448			(7	)%
Digital																				3,213			3,515			(9	)%		6,884			6,740			2	%
Radio		4,396			4,502			(2	)%		9,171			9,108			1	%		3,006			4,396			(32	)%		6,994			9,171			(24	)%
Digital		3,515			2,620			34	%		6,740			5,336			26	%
Consolidated		13,545			12,673			7	%		27,359			25,967			5	%		10,897			13,545			(20	)%		24,488			27,359			(10	)%

Depreciation and amortization
Television		2,562			2,277			13	%		4,822			4,481			8	%		3,411			2,562			33	%		6,286			4,822			30	%
Digital																				-			1,173			(100	)%		1,150			2,497			(54	)%
Radio		571			621			(8	)%		903			1,240			(27	)%		462			571			(19	)%		949			903			5	%
Digital		1,173			1,121			5	%		2,497			2,237			12	%
Consolidated		4,306			4,019			7	%		8,222			7,958			3	%		3,873			4,306			(10	)%		8,385			8,222			2	%

Segment operating profit (loss)
Television		14,718			13,665			8	%		29,970			24,430			23	%		5,808			14,718			(61	)%		20,375			29,970			(32	)%
Digital																				(1,230	)		(1,713	)		(28	)%		(3,260	)		(3,927	)		(17	)%
Radio		(129	)		1,182		*				(2,789	)		(614	)		354	%		(2,819	)		(129	)	*				(3,236	)		(2,789	)		16	%
Digital		(1,713	)		289		*				(3,927	)		(733	)		436	%
Consolidated		12,876			15,136			(15	)%		23,254			23,083			1	%		1,759			12,876			(86	)%		13,879			23,254			(40	)%

Corporate expenses		6,501			6,266			4	%		13,395			12,241			9	%		5,384			6,501			(17	)%		12,224			13,395			(9	)%
Change in fair value contingent consideration		(2,735	)		(913	)		200	%		(2,376	)		1,187		*				-			(2,735	)		(100	)%		-			(2,376	)		(100	)%
Impairment charge		22,368			-		*				22,368			-		*				-			22,368			(100	)%		39,835			22,368			78	%
Foreign currency (gain) loss		(82	)		(17	)		382	%		50			196			(74	)%		(155	)		(82	)		89	%		1,353			50		*
Other operating (gain) loss		(1,597	)		(273	)		485	%		(3,593	)		(295	)		1,118	%		(2,030	)		(1,597	)		27	%		(2,866	)		(3,593	)		(20	)%
Operating income (loss)		(11,579	)		10,073		*				(6,590	)		9,754		*				(1,440	)		(11,579	)		(88	)%		(36,667	)		(6,590	)		456	%

Interest expense	$	(3,554	)	$	(4,001	)		(11	)%	$	(7,044	)	$	(7,399	)		(5	)%	$	(2,024	)	$	(3,554	)		(43	)%	$	(4,704	)	$	(7,044	)		(33	)%
Interest income		857			1,039			(18	)%		1,776			1,952			(9	)%		539			857			(37	)%		1,162			1,776			(35	)%
Dividend income		251			417			(40	)%		506			545			(7	)%		-			251			(100	)%		24			506			(95	)%
Income (loss) before income taxes		(14,025	)		7,528		*				(11,352	)		4,852		*				(2,925	)		(14,025	)		(79	)%		(40,185	)		(11,352	)		254	%

Capital expenditures
Television	$	7,661		$	1,942					$	14,002		$	4,023					$	1,325		$	7,661					$	4,507		$	14,002
Digital																				473			121						771			240
Radio		199			81						581			162						135			199						331			581
Digital		121			181						240			247
Consolidated	$	7,981		$	2,204					$	14,823		$	4,432					$	1,933		$	7,981					$	5,609		$	14,823

	June 30,			December 31,															June 30,			December 31,
Total assets		2019			2018															2020			2019
Television		506,267			487,929															442,074			465,758
Digital																				32,294			51,979
Radio		138,577			121,020															121,806			138,463
Digital		54,735			81,460
Consolidated	$	699,579		$	690,409														$	596,174		$	656,200

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.

On July 31, 2019, the Company entered into an agreement with MBTV Texas Valley LLC to acquire television station KMBH-TV, serving the McAllen, Texas area, for $2.9 million. The transaction, which is subject to customary closing conditions, including the prior consent of the FCC, is currently expected to close in the second half of 2019.

We are a leading global media company that, through our television and radio segments, reaches and engages U.S. Hispanics across acculturation levels and media channels. Additionally, our digital segment, whose operations are located primarily in Spain, Mexico, Argentina and other countries in Latin America, reaches a global market. Our operations encompass integrated marketing and media solutions, comprised of television, radio and digital properties and data analytics services. For financial reporting purposes, we report in three segments based upon the type of advertising medium: television, radio and digital. Our net revenue for the three-month period ended June 30, ~~2019~~2020 was ~~$69.2~~$45.1 million. Of that amount, revenue attributed to our television segment accounted for approximately ~~55%~~60%, revenue attributed to our digital segment accounted for approximately ~~24%~~25% and revenue attributed to our radio segment accounted for approximately ~~21%~~15%.

As of the date of filing this report, own and/or operate 5554 primary television stations located primarily in California, Colorado, Connecticut, Florida, Kansas, Massachusetts, Nevada, New Mexico, Texas and Washington, D.C. We own and operate 49 radio stations in 16 U.S. markets. Our radio stations consist of 38 FM and 11 AM stations located in Arizona, California, Colorado, Florida, Nevada, New Mexico and Texas. We also ~~operate Entravision Solutions as our national sales representation division, through which we~~ sell advertisements and syndicate radio programming to more than 100 markets ~~stations~~ across the United States. We also provide digital advertising solutions that allow advertisers to reach primarily online Hispanic audiences worldwide. We operate a proprietary technology and data ~~platform~~platforms that ~~delivers~~deliver digital advertising in various advertising formats ~~that allows~~and which allow advertisers to reach audiences across a wide range of Internet-connected devices on our owned and operated digital media sites; the digital media sites of our publisher partners; and on other digital media sites we access through third-party platforms and exchanges.

We generate revenue primarily from sales of national and local advertising time on television stations, radio stations and digital media platforms, and from retransmission consent agreements that are entered into with MVPDs. Advertising rates are, in large part, based on each medium’s ability to attract audiences in demographic groups targeted by advertisers. We recognize advertising revenue when commercials are broadcast and when display or other digital advertisements record impressions on the websites of our third party publishers or as the advertiser’s previously agreed-upon performance criteria are satisfied. We do not obtain long-term commitments from our advertisers and, consequently, they may cancel, reduce or postpone orders without penalties. We pay commissions to agencies for local, regional and national advertising. For contracts directly with agencies, we record net revenue from these agencies. Seasonal revenue fluctuations are common in our industry and are due primarily to variations in advertising expenditures by both local and national advertisers. Our first fiscal quarter generally produces the lowest net revenue for the year. In addition, advertising revenue is generally higher during presidential election years (2020, 2024, etc.), resulting from significant political advertising and, to a lesser degree, Congressional mid-term election years (2022, 2026, etc.), resulting from increased political advertising, compared to other years.

We refer to the revenue generated by agreements with MVPDs as retransmission consent revenue, which represents payments from MVPDs for access to our television station signals so that they may rebroadcast our signals and charge their subscribers for this programming. We recognize retransmission consent revenue earned as the television signal is delivered to the MVPD.

Our FCC licenses grant us spectrum usage rights within each of the television markets in which we operate. We regard these rights as a valuable asset. With the proliferation of mobile devices and advances in technology that have freed up excess spectrum capacity, the monetization of our spectrum usage rights has become a significant part of our business in recent years. We generate revenue from agreements associated with these 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 such agreements is recognized over the period of the lease or when we have relinquished all or a portion of our spectrum usage rights for a station or have relinquished our rights to operate a station on the existing channel free from interference. In addition, we will consider strategic acquisitions of television stations to further this strategy from time to time, as well as additional monetization opportunities expected to arise as the television broadcast industry anticipates advances in ATSC 3.0.

Our primary expenses are employee compensation, including commissions paid to our sales staff and amounts paid to our national representative firms, as well as expenses for general and administrative functions, promotion and selling, engineering, marketing and local programming. Our local programming costs for television consist primarily of costs related to producing a local newscast in most of our markets. Cost of revenue related to our ~~television segment consists primarily of the carrying value of spectrum usage rights that were surrendered in the FCC auction for broadcast spectrum. In addition, cost of revenue related to our~~ digital segment consists primarily of the costs of online media acquired from third-party publishers and third party server costs. Direct operating expenses include salaries and commissions of sales staff, amounts paid to national representation firms, production and programming expenses, fees for ratings services, and engineering costs. Corporate expenses consist primarily of salaries related to corporate officers and back office functions, third party legal and accounting services, and fees incurred as a result of being a publicly traded and reporting company.

During the second quarter of ~~2019,~~2020, our consolidated revenue decreased to ~~$69.2~~$45.1 million from ~~$74.3~~$69.2 million in the prior year period, primarily due to a decrease in advertising ~~revenue.~~revenue as a result of the continuing economic crisis resulting from the COVID-19 pandemic, and a decrease in revenue from spectrum usage rights. The decrease in ~~advertising~~ revenue was partially offset by an increase in retransmission consent revenue ~~from spectrum usage rights~~ in our television ~~segment.~~segment and an increase in political advertising revenue in our television and radio segments. Our audience shares remained strong in the nation’s most densely populated Hispanic markets.

Net revenue in our television segment ~~increased~~decreased to $27.0 million for the three-month period ended June 30, 2020 from $38.1 million for the three-month period ended June 30, ~~2019 from $36.5 million for the three-month period ended June 30, 2018, an increase~~2019. This decrease of approximately ~~$1.6~~$11.1 million, or ~~4%. The increase~~29%, in net revenue was primarily due to ~~an increase~~decreases in revenue from spectrum usage rights and local and national advertising revenue, partially offset by aan increase in political advertising revenue and retransmission consent revenue. The decrease in local and national advertising revenue aswas primarily a result ~~in part~~ of the continuing economic crisis resulting from the COVID-19 pandemic, ratings declines, competitive factors with other Spanish-language broadcasters, and changing demographic preferences of audiences. ~~Additionally, there is~~We have previously noted a trend for advertising to move increasingly from traditional media, such as television, to new media, such as digital ~~media. The increase~~media, and we expect this trend to continue.

Net revenue in ~~revenue was also partially offset by a decrease in political advertising revenue, which was not material in 2019. We generated a total of $9.1~~our digital segment decreased to $11.4 million ~~in retransmission consent revenue~~ for ~~each of~~ the three-month ~~periods~~period ended June 30, ~~2019~~2020 from $16.8 million for the three-month period ended June 30, 2019. This decrease of approximately $5.4 million, or 32%, in net revenue was a result of declines in international revenue and ~~2018.~~the continuing economic crisis resulting from the COVID-19 pandemic. We have previously noted a trend in our domestic digital operations whereby revenue is shifting more to programmatic revenue, and this trend is now growing in markets outside the United States. As a result, advertisers are demanding more efficiency and lower cost from intermediaries like us. In response to this trend, we are offering programmatic solutions to advertisers, which is putting pressure on margins. We expect this trend will continue in future periods, likely resulting in a permanent higher volume, lower margin business in our digital segment. The digital advertising industry remains dynamic and is continuing to undergo rapid changes in technology and competition. We expect this trend to continue and possibly accelerate. We must continue to remain vigilant to meet these dynamic and rapid changes including the need to further adjust our business strategies accordingly. No assurances can be given that such adjustments will be successful.

Net revenue in our radio segment decreased to $6.8 million for the three-month period ended June 30, 2020 from $14.4 million for the three-month period ended June 30, ~~2019 from $17.2 million for the three-month period ended June 30, 2018.~~2019. This decrease of approximately ~~$2.8~~$7.6 million, or ~~17%~~53%, in net revenue was primarily due to decreases in local and national advertising revenue, aspartially offset by an increase in political advertising revenue. The decrease in local and national advertising revenue was primarily a result ~~in part~~ of the continuing economic crisis resulting from the COVID-19 pandemic, ratings declines and competitive factors with other Spanish-language broadcasters, and changing demographic preferences of ~~audiences as well as the absence of revenue from the 2018 FIFA World Cup in 2019 compared to 2018. Additionally, there is~~audiences. We have previously noted a trend for advertising to move increasingly from traditional media, such as radio, to new media, such as digital ~~media.~~media, and we expect this trend to continue. This trend has had a more significant impact on our radio revenue as compared to television revenue, and we expect that this trend will also continue.

This section of this report should be read in conjunction with the rest of this item, “Forward-Looking Statements” and Notes to Consolidated Financial Statements appearing herein, for a more complete understanding of the impact of the COVID-19 pandemic on our business.

The COVID-19 pandemic has affected our business and, subject to the extent and duration of the pandemic and the continuing economic crisis that has resulted from the pandemic, is anticipated to continue to affect our business, from both an operational and financial perspective, in future periods.

As a result of lockdown, shelter-in-place, stay-at-home or similar orders imposed beginning in March 2020, businesses in non-essential industries were closed or their operations were curtailed throughout the United States and around the world. By some estimates, up to 95% of the U.S. population has at one time or another been subject to such orders. While a number of such orders have been lifted or eased, unprecedented disruptions in daily life and business continue on a global scale.

We are considered, or we believe that we are considered, an “essential business” in all jurisdictions in the United States that have imposed lockdown, shelter-in-place, stay-at-home or similar orders. To date, we have experienced no significant interruption of our broadcasts in our television and radio segments in any of the markets in which we own and/or operate stations. Nonetheless, we are operating with reduced staff at all of our stations and we cannot give assurance at this time whether a more prolonged or extensive impact of the pandemic in any of our markets would not adversely affect our ability to continue staffing our stations at appropriate levels to continue broadcasts without interruption.

Our digital media segment has a significant number of employees in Spain, Mexico and Argentina, which have been among the worst affected countries in the world by the pandemic. Spain began to return to work in July following highly restrictive lockdowns that began in March 2020 and Mexico began lifting lockdown restrictions in early June, while in late June Argentina extended and strengthened existing lockdown conditions in Buenos Aires that began nationwide in March 2020. Nonetheless, most of our employees in our digital media segment ~~decreased~~work remotely and we have not seen a significant interruption in our digital media business to ~~$16.8 million for~~date. We cannot give assurance at this time whether a more prolonged or extensive impact of the ~~three-month period~~pandemic in Spain, Latin America or any other location where our digital media segment has employees or operates would not adversely affect our digital media business.

Our corporate office is located in Santa Monica, California, which, since March 19, 2020, has been subject to a statewide order to stay at home except as needed to maintain continuity of operations of critical infrastructure sectors. We have been operating with reduced staff in our corporate office, with the majority of our staff working remotely, despite the easing of the stay-at-home order in California late in the quarter ended June 30, ~~2019 from $20.6 million for~~ 2020. We have not experienced any significant interruption in any of our corporate or administrative departments, including without limitation our finance and accounting departments.

In the ~~three-month period~~quarter ended June 30, ~~2018. This decrease of approximately $3.8 million, or 18%, in net revenue was~~2020, as the global, U.S. and local economies declined dramatically as a result of ~~declines~~lockdown, shelter-in-place and stay-at-home or similar orders, we experienced a continuation of the significant cancellations of advertising and a significant decrease in ~~both international~~new advertising placements in our television segment and ~~domestic revenue.~~especially our radio segment that we had begun to experience during the last half of March 2020. The impact on our radio segment was significantly greater than on our television segment because radio audiences declined at a much greater rate as a result of fewer people commuting to work or driving in general as a result of lockdown, shelter-in-place, stay-at-home or similar orders throughout the United States that were in effect broadly for most of the quarter ended June 30, 2020.

We believe that these cancellations and reductions in the placement of new advertising are primarily attributable to decisions that our advertisers are making regarding the preservation of their own capital during the continuing business interruption that has resulted from a variety of lockdown, shelter-in-place, stay-at-home or similar orders; the closure of businesses across the United States, including those in the automotive, services, non-emergency healthcare, retail, travel, restaurant and telecommunications industries, which has resulted in consumers not being able to frequent such businesses; reduced demand for products and services by our advertisers’ customers, who are our audiences; the diversion of our advertisers’ own personnel’s attention from advertising activities during the pandemic as a result of health concerns, remote working and/or financial and other non-financial considerations; and the financial solvency of our advertisers in general during the continuing economic crisis that has resulted from the pandemic.

To partially address this situation, we have significantly reduced some of our advertising rates, primarily in our radio segment. We have ~~previously noted~~also eased credit terms for certain of our advertising clients to help them manage their own cash flow and address other financial needs.

Depending upon the extent and duration of the pandemic and the continuing economic crisis that has resulted from the pandemic, we expect that these cancellations and reductions in the placement of new advertising will continue in future periods. Therefore, our results of operations for the quarter ended June 30, 2020 may not be indicative of our results of operations for any future period in fiscal year 2020 or the full fiscal year 2020. We cannot give assurance at this time whether a ~~trend~~more prolonged or extensive impact of the pandemic and the continuing economic crisis that has resulted from the pandemic would not adversely affect our business, results of operations and financial condition in ~~our domestic digital operations whereby revenue~~future periods during the course of the pandemic, or beyond.

Based on publicly available information, while it currently appears that there is ~~shifting more to automated self-service platforms, referred to in our industry as programmatic revenue,~~some economic recovery underway and ~~this trend is now growing in markets outside~~ the U.S. Aseconomy has begun to improve month-over-month during the quarter ended June 30, 2020, we believe that we have not yet felt the full impact of the continuing economic crisis, nor do we know how soon the global, U.S. and local economies will fully recover. Therefore, while we hope for a different outcome, we anticipate that we may continue to experience an adverse financial impact on our business and results of operations, albeit at a potentially slower rate, and possibly our financial condition, for an unknown period of time even after lockdown, shelter-in-place, stay-at-home and similar orders have been fully lifted and businesses begin or continue to reopen. Additionally, any resurgence of the pandemic, which is beginning to be reported in many areas of the United States and around the world, and/or any reimposition of lockdown, shelter-in-place, stay-at-home and similar orders, could intensify this adverse impact and add uncertainty to our business, results of operations and financial condition in future periods.

We have engaged in a small number of layoffs and significant number of furloughs of employees as a result ~~advertisers~~of the pandemic, primarily during the quarter ended March 31, 2020 and early in the quarter ended June 30, 2020. We will continue to monitor this situation closely and may institute such further layoffs or furloughs as we may feel are ~~demanding more efficiency~~appropriate at a future date. It is unclear when we may reintroduce furloughed employees to active employment, but this will depend, at least in significant part, on substantial improvement in economic conditions as a whole, as well as our own results of operations, to pre-pandemic or close to pre-pandemic levels. We have elected to defer the employer portion of the social security payroll tax (6.2%) as outlined within the Coronavirus Aid, Relief and ~~lower cost~~Economic Security Act of 2020, commonly known as the CARES Act. The deferral is effective from ~~intermediaries like us, which~~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 ~~putting pressure on margins. In response~~paid by December 31, 2021 and the remainder by December 31, 2022. We are also reviewing the possibility of applying for some relief under the CARES Act with respect to ~~this,~~our furloughed employees, but we have ~~started~~not done so yet and no decision has been made if we will apply for any such relief.

In order to ~~offer programmatic solutions to advertisers and strategically shift the focus of~~preserve cash during this period, we have instituted certain cost reduction measures. On March 26, 2020, we suspended repurchases under our ~~other digital offerings to focus~~share repurchase program. Effective April 16, 2020, we instituted a 2.5%-22.5% reduction in salaries company-wide, depending on generating revenue with lower associated cost of revenue. This has contributed to a decline in the volume of revenue but led to improvement in the gross margin percentage. The digital advertising industry is dynamic and undergoing rapid changes in technology and competition and we expect this trend to continue. We must remain adaptable to meet these dynamic and rapid changes and may need to adjust our business strategies accordingly.

~~We incurred an impairment charge related to goodwill in our digital reporting unit in~~ the amount of ~~$22.4 million during the three-month period ended June 30, 2019.~~ ~~Due~~then-current compensation. Effective May 16, 2020, we suspended company matching of employee contributions to ~~lower than anticipated performance of~~their 401(k) retirement plans. We also reduced our ~~digital reporting unit~~dividend by 50% in the ~~second~~present quarter and may consider doing so in future periods. Additionally, effective May 28, 2020, the Board of ~~2019, changes~~Directors decreased its annual non-employee director fees by 20% for the Board year ending at the 2021 shareholders meeting. We will continue to monitor all of these actions closely in ~~key personnel,~~light of current and ~~updated internal forecasts~~changing conditions and may institute such additional actions as we may feel are appropriate at a future date.

We believe that our liquidity and capital resources remain adequate and that we can meet current expenses for at least the next twelve months from a combination of ~~future performance~~cash on hand and cash flows from operations.

In addition to the great personal toll that the pandemic has exacted and is expected to continue to exact, the challenges it is causing to the global, U.S. and local economies have and will continue to create unprecedented uncertainty in our business and how we plan and respond to rapidly changing circumstances in our operations, as well as the impact this may have on our business, results of ~~our digital reporting unit,~~operations and financial condition. We are closely monitoring the situation across all fronts and will need to remain flexible to respond to developments as they occur. However, we ~~determined that triggering events had occurred during~~cannot give any assurance if, or the ~~second quarter of 2019 that required an interim impairment assessment for our digital reporting unit.~~extent to which, we will be successful in these efforts.

Substantially all of our television stations are Univision- or UniMás-affiliated television stations. Our network affiliation agreement with Univision provides certain of our owned stations the exclusive right to broadcast Univision’s primary network and UniMás network programming in their respective markets. Under the network affiliation agreement, we retain 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 our exclusive third-party sales representative for the sale of certain national advertising on our Univision- and UniMás-affiliate television stations, and we pay certain sales representation fees to Univision relating to sales of all advertising for broadcast on our Univision- and UniMás-affiliate television stations. During the three-month periods ended June 30, ~~2019~~2020 and ~~2018,~~2019, the amount we paid Univision in this capacity was ~~$2.0~~$1.4 million and ~~$2.2~~$2.0 million, respectively. During the six-month periods ended June 30, ~~2019~~2020 and ~~2018,~~2019, the amount we paid Univision in this capacity was ~~$4.0~~$3.6 million and ~~$4.3~~$4.0 million, respectively.

We also generate revenue under two marketing and sales agreements with Univision, which give us 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 current proxy agreement we have entered into with Univision, we grant Univision the right to negotiate the terms of retransmission consent agreements for our Univision- and UniMás-affiliated television station signals. Among other things, the proxy agreement provides terms relating to compensation to be paid to us by Univision with respect to retransmission consent agreements entered into with MVPDs. During ~~each of~~ the three-month periods ended June 30, ~~2019~~2020 and ~~2018,~~2019, retransmission consent revenue accounted for approximately $9.4 million and $9.1 million, respectively, of which ~~$7.0~~$6.8 million and ~~$7.5~~$7.0 million, respectively, relate to the Univision proxy agreement. During the six-month periods ended June 30, ~~2019~~2020 and ~~2018,~~2019, retransmission consent revenue accounted for approximately ~~$17.8~~$18.9 million and ~~$18.0~~$17.8 million, respectively, of which ~~$13.7~~$13.8 million and ~~$15.1~~$13.7 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 our common stock on a fully-converted basis. Our 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 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 our issued and outstanding Class U common stock, so long as Univision holds a certain number of shares of Class U common stock, we may not, without the consent of Univision, merge, consolidate or enter into a business combination, dissolve or liquidate our company or dispose of any interest in any FCC license with respect to television stations which are affiliates of Univision, among other things.

For a description of our critical accounting policies, please refer to “Application of Critical Accounting Policies and Accounting Estimates” in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the fiscal year ended December 31, ~~2018,~~2019, filed with the SEC on ~~May 7, 2019.~~March 16, 2020.

~~In August 2018, the FASB~~For further information on recently issued ~~ASU 2018-15,~~ ~~Intangibles-Goodwill~~accounting pronouncements, see Note 2, “The Company and ~~Other-Internal-Use Software (Subtopic 350-40): Customer’s~~Significant Accounting ~~for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract~~. The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this update. The amendments in this update are effective for annual reporting periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The amendments in this update should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company isPolicies” in the ~~process of assessing the impact of this ASU on its Consolidated Financial Statements.~~

~~In August 2018, the FASB issued ASU No. 2018-13 “Fair Value Measurement (Topic 820): Disclosure Framework-Changes~~accompanying Notes to the Disclosure Requirements for Fair Value Measurement,” (“ASU No. 2018-13”), which modifies the disclosure requirements on fair value measurements, including the consideration of costs and benefits. ASU 2018-13 is effective for all entities for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, but entities are permitted to early adopt either the entire standard or only the provisions that eliminate or modify the requirements. The Company is in the process of assessing the impact of this ASU on its Consolidated Financial Statements.

~~In June 2016, the FASB issued ASU 2016-13,~~ ~~Financial Instruments—Credit Losses (Topic 326),~~ which amends current guidance on other-than-temporary impairments of available-for-sale debt securities. This amended standard requires the use of an allowance to record estimated credit losses on these assets when the fair value is below the amortized cost of the asset. This standard also removes the evaluation of the length of time that a security has been in a loss position to avoid recording a credit loss. The update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is in the process of assessing the impact of this ASU on its Consolidated Financial Statements.

The following table sets forth selected data from our operating results for the three- and six-month periods ended June 30, ~~2019~~2020 and ~~2018~~2019 (in thousands):

	Three-Month Period									Six-Month Period									Three-Month Period									Six-Month Period
	Ended June 30,						%			Ended June 30,						%			Ended June 30,						%			Ended June 30,						%
	2019			2018			Change			2019			2018			Change			2020			2019			Change			2020			2019			Change
Statements of Operations Data:
Net Revenue	$	69,241		$	74,329			(7	)%	$	133,921		$	141,167			(5	)%	$	45,116		$	69,241			(35	)%	$	109,365		$	133,921			(18	)%

Cost of revenue - digital media		8,859			11,384			(22	)%		16,501			22,009			(25	)%		6,447			8,859			(27	)%		13,794			16,501			(16	)%
Direct operating expenses		29,655			31,117			(5	)%		58,585			62,150			(6	)%		22,140			29,655			(25	)%		48,819			58,585			(17	)%
Selling, general and administrative expenses		13,545			12,673			7	%		27,359			25,967			5	%		10,897			13,545			(20	)%		24,488			27,359			(10	)%
Corporate expenses		6,501			6,266			4	%		13,395			12,241			9	%		5,384			6,501			(17	)%		12,224			13,395			(9	)%
Depreciation and amortization		4,306			4,019			7	%		8,222			7,958			3	%		3,873			4,306			(10	)%		8,385			8,222			2	%
Change in fair value contingent consideration		(2,735	)		(913	)		200	%		(2,376	)		1,187		*				-			(2,735	)		(100	)%		-			(2,376	)		(100	)%
Impairment charge		22,368			-		*				22,368			-		*				-			22,368			(100	)%		39,835			22,368			78	%
Foreign currency (gain) loss		(82	)		(17	)		382	%		50			196			(74	)%		(155	)		(82	)		89	%		1,353			50		*
Other operating (gain) loss		(1,597	)		(273	)		485	%		(3,593	)		(295	)		1118	%		(2,030	)		(1,597	)		27	%		(2,866	)		(3,593	)		(20	)%
		80,820			64,256			26	%		140,511			131,413			7	%		46,556			80,820			(42	)%		146,032			140,511			4	%
Operating income (loss)		(11,579	)		10,073		*				(6,590	)		9,754		*				(1,440	)		(11,579	)		(88	)%		(36,667	)		(6,590	)		456	%
Interest expense		(3,554	)		(4,001	)		(11	)%		(7,044	)		(7,399	)		(5	)%		(2,024	)		(3,554	)		(43	)%		(4,704	)		(7,044	)		(33	)%
Interest income		857			1,039			(18	)%		1,776			1,952			(9	)%		539			857			(37	)%		1,162			1,776			(35	)%
Dividend income		251			417			(40	)%		506			545			(7	)%		-			251			(100	)%		24			506			(95	)%
Income before income (loss) taxes		(14,025	)		7,528		*				(11,352	)		4,852		*				(2,925	)		(14,025	)		(79	)%		(40,185	)		(11,352	)		254	%
Income tax benefit (expense)		(2,252	)		(2,652	)		(15	)%		(3,345	)		(1,721	)		94	%		5,263			(2,252	)	*				6,931			(3,345	)	*
Income (loss) before equity in net income (loss) of
nonconsolidated affiliate		(16,277	)		4,876		*				(14,697	)		3,131		*				2,338			(16,277	)	*				(33,254	)		(14,697	)		126	%
Equity in net income (loss) of nonconsolidated affiliate, net of tax		(2	)		(36	)		(94	)%		(158	)		(98	)		61	%		-			(2	)		(100	)%		-			(158	)		(100	)%
Net income (loss)	$	(16,279	)	$	4,840		*			$	(14,855	)	$	3,033		*			$	2,338		$	(16,279	)	*			$	(33,254	)	$	(14,855	)		124	%

Other Data:
Capital expenditures		7,981			2,204						14,823			4,432						1,933			7,981						5,609			14,823
Consolidated adjusted EBITDA (adjusted for non-cash stock-based compensation) (1)											20,636			21,803															11,402			20,636
Net cash provided by operating activities											19,670			16,916															19,463			19,670
Net cash provided by (used in) investing activities											6,239			(146,831	)														25,015			6,239
Net cash used in financing activities											(20,024	)		(22,268	)														(8,362	)		(20,024	)

Since consolidated adjusted EBITDA is a measure governing several critical aspects of our 2017 Credit Facility, we believe that it is important to disclose consolidated adjusted EBITDA to our investors. We may increase the aggregate principal amount outstanding by an additional amount equal to $100.0 million plus the amount that would result in our total net leverage ratio, or the ratio of consolidated total senior debt (net of up to $75.0 million of unrestricted cash) to trailing-twelve-month consolidated adjusted EBITDA, not exceeding 4.0. In addition, beginning December 31, 2018, at the end of every calendar year, in the event our total net leverage ratio is within certain ranges, we must make a debt prepayment equal to a certain percentage of our Excess Cash Flow, which is defined as consolidated adjusted EBITDA, less consolidated interest expense, less debt principal payments, less taxes paid, less other amounts set forth in the definition of Excess Cash Flow in the 2017 Credit Agreement. The total leverage ratio was as follows (in each case as of June 30): 2020, 4.4 to 1; 2019, 3.2 to ~~1; 2018, 4.9 to~~ 1.

While many in the financial community and we consider consolidated adjusted EBITDA to be important, it should be considered in addition to, but not as a substitute for or superior to, other measures of liquidity and financial performance prepared in accordance with accounting principles generally accepted in the United States of America, such as cash flows from operating activities, operating income (loss) and net income (loss). As consolidated adjusted EBITDA excludes non-cash gain (loss) on sale of assets, non-cash depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation expense, net interest expense, other income (loss), non-recurring cash expenses, gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from FCC spectrum incentive auction less related expenses, expenses associated with investments, acquisitions and dispositions and certain pro-forma cost savings, consolidated adjusted EBITDA has certain limitations because it excludes and includes several important financial line items. Therefore, we consider both non-GAAP and GAAP measures when evaluating our business. Consolidated adjusted EBITDA is also used to make executive compensation decisions.

Consolidated adjusted EBITDA is a non-GAAP measure. The most directly comparable GAAP financial measure to consolidated adjusted EBITDA is cash flows from operating activities. A reconciliation of this non-GAAP measure to cash flows from operating activities follows (in thousands):

	Six-Month Period						Six-Month Period
	Ended June 30,						Ended June 30,
		2019			2018			2020			2019
Consolidated adjusted EBITDA	$	20,636		$	21,803		$	11,402		$	20,636

Interest expense		(7,044	)		(7,399	)		(4,704	)		(7,044	)
Interest income		1,776			1,952			1,162			1,776
Dividend income		506			545			24			506
Income tax expense		(3,345	)		(1,721	)		6,931			(3,345	)
Equity in net loss of nonconsolidated affiliates		(158	)		(98	)		-			(158	)
Amortization of syndication contracts		(249	)		(352	)		(258	)		(249	)
Payments on syndication contracts		227			360			253			227
Non-cash stock-based compensation included in direct operating expenses		(250	)		(292	)		(235	)		(250	)
Non-cash stock-based compensation included in corporate expenses		(1,385	)		(2,133	)		(1,357	)		(1,385	)
Depreciation and amortization		(8,222	)		(7,958	)		(8,385	)		(8,222	)
Change in fair value contingent consideration		2,376			(1,187	)		-			2,376
Impairment charge		(22,368	)		-			(39,835	)		(22,368	)
Non-recurring cash severance charge		(948	)		(782	)		(1,118	)		(948	)
Other operating gain (loss)		3,593			295			2,866			3,593
Net income (loss)		(14,855	)		3,033			(33,254	)		(14,855	)

Depreciation and amortization		8,222			7,958			8,385			8,222
Impairment charge		22,368			-			39,835			22,368
Deferred income taxes		1,472			1,029			(7,398	)		1,472
Non-cash interest		489			538			332			489
Amortization of syndication contracts		249			352			258			249
Payments on syndication contracts		(227	)		(360	)		(253	)		(227	)
Equity in net (income) loss of nonconsolidated affiliate		158			98			-			158
Non-cash stock-based compensation		1,635			2,425			1,592			1,635
(Gain) loss on disposal of property and equipment		161			-			(627	)		161
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		9,619			9,170			19,513			9,619
(Increase) decrease in prepaid expenses and other assets		2,680			(6,547	)		5,090			2,680
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(12,301	)		(780	)		(14,010	)		(12,301	)
Cash flows from operating activities	$	19,670		$	16,916		$	19,463		$	19,670

Net Revenue. Net revenue decreased to $45.1 million for the three-month period ended June 30, 2020 from $69.2 million for the three-month period ended June 30, 2019, ~~from $74.3 million for the three-month period ended June 30, 2018,~~ a decrease of ~~$5.1~~$24.1 million. Of the overall decrease, approximately ~~$3.8~~$11.1 million was attributable to our television segment due to decreases in revenue from spectrum usage rights and local and national advertising revenue, partially offset by increases in political advertising revenue and retransmission consent revenue. The decrease in local and national advertising revenue was primarily a result of the continuing economic crisis resulting from the COVID-19 pandemic, ratings declines, competitive factors with other Spanish-language broadcasters, and changing demographic preferences of audiences. We have previously noted a trend for advertising to move increasingly from traditional media, such as television, to new media, such as digital media, and we expect this trend to continue. In addition, approximately $5.4 million of the overall decrease was attributable to our digital segment and was primarily due to declines in ~~both~~ international revenue and ~~domestic revenue. The~~the continuing economic crisis resulting from the COVID-19 pandemic. This decline in digital revenue is being driven by a trend whereby revenue is shifting more to ~~automated self-service platforms, referred to in our industry as~~ programmatic revenue. ~~Additionally,~~In addition, approximately ~~$2.8~~$7.6 million of the overall decrease was attributable to our radio segment and was primarily due to decreases in local and national advertising revenue, ~~as a result in part of ratings declines and changing demographic preferences of audiences, as well as~~ ~~the absence of revenue from the 2018 FIFA World Cup revenue in 2019 compared to 2018. The overall decrease in revenue was~~ partially offset by an increase in political advertising revenue. The decrease in local and national advertising revenue was primarily a result of the continuing economic crisis resulting from the COVID-19 pandemic, ratings declines and competitive factors with other Spanish-language broadcasters, and changing demographic preferences of audiences. We have previously noted a trend for advertising to move increasingly from traditional media, such as radio, to new media, such as digital media, and we expect this trend to continue.

Net revenue decreased to $109.4 million for the six-month period ended June 30, 2020 from $133.9 million for the six-month period ended June 30, 2019, a decrease of $24.5 million. Of the overall decrease, approximately $10.2 million was attributable to our television segment ~~of approximately $1.6 million and was primarily~~ due to ~~an increase~~decreases in revenue from spectrum usage rights and local and national advertising revenue, partially offset by aincreases in political advertising revenue and retransmission consent revenue. The decrease in local and national advertising revenue aswas primarily a result ~~in part~~ of the continuing economic crisis resulting from the COVID-19 pandemic, ratings declines, competitive factors with other Spanish-language broadcasters, and changing demographic preferences of ~~audiences and~~audiences. We have previously noted a trend for advertising to move increasingly from traditional media, such as television, to new media, such as digital ~~media. The increase in revenue in our television segment was also partially offset by a decrease in political advertising revenue, which is not material in 2019.~~

~~Net revenue decreased~~media, and we expect this trend to ~~$133.9~~continue. In addition, approximately $6.6 million ~~for the six-month period ended June 30, 2019 from $141.2 million for the six-month period ended June 30, 2018, a decrease~~ of ~~$7.3 million. Of~~ the overall decrease ~~approximately $7.5 million~~ was attributable to our digital segment and was primarily due to declines in ~~both~~ international revenue and ~~domestic revenue. The~~the continuing economic crisis resulting from the COVID-19 pandemic. This decline in digital revenue is being driven by a trend whereby revenue is shifting more to ~~automated self-service platforms, referred to in our industry as~~ programmatic revenue. ~~Additionally,~~In addition, approximately ~~$5.0~~$7.8 million of the overall decrease was attributable to our radio segment and was primarily due to decreases in local and national advertising revenue, ~~as a result in part of ratings declines and changing demographic preferences of audiences as well as~~ ~~the absence of revenue from the 2018 FIFA World Cup revenue in 2019 compared to 2018. The overall decrease in revenue was~~ partially offset by an increase in ~~our television segment of approximately $5.3 million and was primarily due to an increase in revenue from spectrum usage rights, partially offset by a~~political advertising revenue. The decrease in local and national advertising revenue aswas primarily a result ~~in part~~ of the continuing economic crisis resulting from the COVID-19 pandemic, ratings declines and competitive factors with other Spanish-language broadcasters, and changing demographic preferences of ~~audiences and~~audiences. We have previously noted a trend for advertising to move increasingly from traditional media, such as ~~television,~~radio, to new media, such as digital ~~media. The increase in revenue in our television segment was also partially offset by a decrease in political advertising revenue, which is not material in 2019.~~media, and we expect this trend to continue.

We currently anticipate that for the full year ~~2019,~~2020, net revenue will ~~increase~~decrease, primarily due to the continuing economic crisis resulting from ~~spectrum usage rights~~the COVID-19 pandemic and ~~retransmission consent revenue compared to 2018. We anticipate political revenue will decrease in 2019 compared to 2018.~~the continuing effects of that crisis, depending upon its extent and duration.

Cost of revenue-Digital. Cost of revenue in our digital segment decreased to $6.4 million for the three-month period ended June 30, 2020 from $8.9 million for the three-month period ended June 30, 2019, ~~from $11.4 million for the three-month period ended June 30, 2018,~~ a decrease of $2.5 million, primarily due to the decrease in revenue in our digital segment and a strategic shift in our digital business designed to focus on generating revenue with lower associated costs to produce higher margins.

Cost of revenue in our digital segment decreased to $16.5 million for the six-month period ended June 30, 2019 from $22.0 million for the six-month period ended June 30, 2018, a decrease of $5.5 million, primarily due to the decrease in revenue in our digital segment and a strategic shift in our digital business designed to focus on generating revenue with lower associated costs to produce higher margins.

~~Direct Operating Expenses.~~ Direct operating expenses decreased to $29.7 million for the three-month period ended June 30, 2019 from $31.1 million for the three-month period ended June 30, 2018, a decrease of $1.4 million. The decrease was primarily attributable to our radio segment and was primarily due to a decrease in expenses associated with the decrease in ~~advertising~~ revenue ~~and a decrease~~ in ~~salary expense. As a percentage~~our digital segment.

Cost of ~~net~~ revenue ~~direct operating expenses increased~~in our digital segment decreased to ~~43%~~$13.8 million for the ~~three-month~~six-month period ended June 30, ~~2019~~2020 from ~~42% for the three-month period ended June 30, 2018.~~

~~Direct operating expenses decreased to $58.6~~$16.5 million for the six-month period ended June 30, 2019, ~~from $62.1 million for the six-month period ended June 30, 2018,~~ a decrease of ~~$3.5 million. Of the overall decrease, approximately $2.6~~$2.7 million, ~~was attributable to our radio segment and was~~ primarily due to a decrease in expenses associated with the decrease in ~~advertising~~ revenue ~~and~~in our digital segment.

Direct Operating Expenses. Direct operating expenses decreased to $22.1 million for the three-month period ended June 30, 2020 from $29.7 million for the three-month period ended June 30, 2019, a decrease ~~in salary expense. Additionally, approximately $0.5 million~~ of $7.6 million. Of the overall decrease, approximately $2.1 million was attributable to our television segment and was primarily due to decreases in salary expense, as a ~~decrease~~result of the company-wide reduction in salaries implemented effective April 16, 2020, and expenses associated with the decrease in advertising ~~revenue, partially offset by an increase in fees~~revenue. Additionally approximately $2.0 million was attributable to our digital segment and was primarily due to ~~networks related to retransmission consent agreements. In addition,~~decreases in salary expense, as a result of the company-wide reduction in salaries implemented effective April 16, 2020, and expenses associated with the decrease in advertising revenue. Additionally approximately ~~$0.4~~$3.4 million of the overall decrease was attributable to our ~~digital~~radio segment and was primarily due to decreases in salary expense, as a ~~decrease~~result of the company-wide reduction in salaries implemented effective April 16, 2020, and expenses associated with the decrease in advertising revenue. As a percentage of net revenue, direct operating expenses ~~remained constant at 44%~~increased to 49% for ~~each of~~ the ~~six-month periods~~three-month period ended June 30, 2020 from 43% for the three-month period ended June 30, 2019, because the rate of decline in revenue exceeded the rate of decline in expenses.

Direct operating expenses decreased to $48.8 million for the six-month period ended June 30, 2020 from $58.6 million for the six-month period ended June 30, 2019, a decrease of $9.8 million. Of the overall decrease, approximately $1.2 million was attributable to our television segment and ~~2018.~~was primarily due to decreases in salary expense, as a result of the company-wide reduction in salaries implemented effective April 16, 2020, and expenses associated with the decrease in advertising revenue. Additionally approximately $3.3 million was attributable to our digital segment and was primarily due to decreases in salary expense, as a result of the company-wide reduction in salaries implemented effective April 16, 2020, and expenses associated with the decrease in advertising revenue. Additionally approximately $5.2 million of the overall decrease was attributable to our radio segment and was primarily due to decreases in salary expense, as a result of the company-wide reduction in salaries implemented effective April 16, 2020, and expenses associated with the decrease in advertising revenue. As a percentage of net revenue, direct operating expenses increased to 45% for the six-month period ended June 30, 2020 from 44% for the six-month period ended June 30, 2019, because the rate of decline in revenue exceeded the rate of decline in expenses.

We currently anticipate that ~~for the full year 2019,~~ direct operating expenses will decrease during 2020, primarily as a result of ~~a previously announced~~lower expenses associated with the anticipated decrease in revenue due to the continuing economic crisis caused by the COVID-19 pandemic, and the continuing effects of that crisis, depending upon its extent and duration, including the company-wide reduction in ~~personnel and other discretionary expense cuts, both~~salaries implemented effective April 16, 2020. Additionally, we currently anticipate that direct operating expenses will decrease during 2020 due to a structural change in compensation for one of ~~which were implemented beginning in the second quarter of 2018.~~our radio personalities.

Selling, General and Administrative Expenses. Selling, general and administrative expenses ~~increased~~decreased to $10.9 million for the three-month period ended June 30, 2020 from $13.5 million for the three-month period ended June 30, 2019, ~~from $12.7 million~~a decrease of $2.6 million. The decrease was primarily due to decreases in salary expense and payroll tax, as a result of the company-wide reduction in salaries implemented effective April 16, 2020. As a percentage of net revenue, selling, general and administrative expenses increased

to 24% for the three-month period ended June 30, ~~2018, an increase~~2020 from 20% for the three-month period ended June 30, 2019, because the rate of ~~$0.8~~decline in revenue exceeded the rate of decline in expenses.

Selling, general and administrative expenses decreased to $24.5 million for the six-month period ended June 30, 2020 from $27.4 million for the six-month period ended June 30, 2019, a decrease of $2.9 million. The ~~increase~~decrease was primarily due to ~~an increase~~decreases in ~~severance~~salary expense and payroll tax, as a result of the company-wide reduction in ~~our digital segment.~~salaries implemented effective April 16, 2020. As a percentage of net revenue, selling, general and administrative expenses increased to ~~20% for the three-month period ended June 30, 2019 from 17% for the three-month period ended June 30, 2018.~~

~~Selling, general and administrative expenses increased to $27.4 million~~22% for the six-month period ended June 30, ~~2019~~2020 from $26.0 million for the six-month period ended June 30, 2018, an increase of $1.4 million. The increase was primarily due to an increase in severance expense and an increase in bad debt expense in our digital segment. As a percentage of net revenue, selling, general and administrative expenses increased to 20% for the six-month period ended June 30, 2019, ~~from 18% for~~because the ~~six-month period ended June 30, 2018.~~rate of decline in revenue exceeded the rate of decline in expenses.

We currently anticipate that ~~for the full year 2019,~~ selling, general and administrative expenses will ~~increase as a result~~decrease during 2020, primarily due to the continuing economic crisis resulting from the COVID-19 pandemic and the continuing effects of ~~severance expense~~that crisis, depending upon its extent and ~~bad debt expenses that we incurred in our digital segment in~~duration, including the ~~first half of 2019, partially offset by savings from a previously announced~~company-wide reduction in ~~personnel and other discretionary expense cuts, both of which were~~salaries implemented ~~beginning in the second quarter of 2018.~~effective April 16, 2020.

Corporate Expenses. Corporate expenses ~~increased~~decreased to $5.4 million for the three-month period ended June 30, 2020 from $6.5 million for the three-month period ended June 30, 2019, ~~from $6.3 million for the three-month period ended June 30, 2018, an increase~~a decrease of ~~$0.2~~$1.1 million. The ~~increase~~decrease was primarily due to ~~an increase~~decreases in salary expense, as a result of the company-wide reduction in salaries implemented effective April 16, 2020, and audit fees. As a percentage of net revenue, corporate expenses increased to 9%12% for the three-month period ended June 30, ~~2019~~2020 from ~~8% for~~9% the three-month period ended June 30, ~~2018.~~2019, because the rate of decline in revenue exceeded the rate of decline in expenses.

Corporate expenses ~~increased~~decreased to $12.2 million for the six-month period ended June 30, 2020 from $13.4 million for the six-month period ended June 30, 2019, ~~from $12.2 million for the six-month period ended June 30, 2018, an increase~~a decrease of $1.2 million. The ~~increase~~decrease was primarily due to ~~an increase~~decreases in salary expense, as a result of the company-wide reduction in salaries implemented effective April 16, 2020, and audit ~~fees that we incurred in connection with the audit of our 2018 financial statements.~~fees. As a percentage of net revenue, corporate expenses increased to 11% for the six-month period ended June 30, 2020 from 10% for the six-month period ended June 30, 2019, ~~from 9% for~~because the ~~six-month period ended June 30, 2018.~~rate of decline in revenue exceeded the rate of decline in expenses.

We currently anticipate that ~~for the full year 2019,~~ corporate expenses will ~~increase,~~decrease during 2020, primarily ~~as a result~~due to the continuing economic crisis resulting from the COVID-19 pandemic and the continuing effects of ~~increased audit fees~~ that ~~we incurred~~crisis, depending upon its extent and duration, including the company-wide reduction in ~~connection with the audit of our 2018 financial statements.~~salaries implemented effective April 16, 2020.

Depreciation and Amortization. Depreciation and amortization ~~increased~~decreased to $3.9 million for the three-month period ended June 30, 2020 compared to $4.3 million for the three-month period ended June 30, ~~2019 compared~~2019. The decrease was primarily attributable to ~~$4.0~~long-lived assets in our digital segment that were impaired in the first quarter of 2020.

Depreciation and amortization increased to $8.4 million for the ~~three-month~~six-month period ended June 30, ~~2018. The increase was primarily attributable to the acquisition of Smadex, S.L. (“Smadex”) in June 2018.~~

~~Depreciation and amortization increased~~2020 compared to $8.2 million for the six-month period ended June 30, ~~2019 compared to $8.0 million for the six-month period ended June 30, 2018.~~2019. The increase was primarily attributable to fixed assets additions in our television segment as part of the ~~acquisition~~broadcast television repack following the FCC auction for broadcast spectrum, partially offset by long-lived assets in our digital segment that were impaired in the first quarter of ~~Smadex in June 2018.~~2020.

Change in fair value of contingent consideration. As a result of the change in fair value of the contingent consideration related to our 2017 acquisition of 100% of several entities collectively doing business as Headway (“Headway”), we recognized income of $2.7million and $2.4million for the ~~three-month period~~three- and six-month periods ended June 30, 2019 compared to income of $0.9 million for the three-month period ended June 30, 2018. We have not completed the process, described in the agreements related to the acquisition of Headway, of finalizing the calculation of the contingent consideration, if any, related to the acquisition of Headway with respect to calendar year 2018. As a result, as of the date of this filing we are unable to determine the final amount of such contingent consideration, if any, to be paid with respect to calendar year 2018. The determination of the final amount of such contingent consideration, if any, to be paid with respect to calendar year 2018 may result in adjustment in future periods to the fair value of our liability for contingent consideration.

As a result of the change in fair value of the contingent consideration related to our acquisition of Headway, we recognized income of $2.4 million for the six-month period ended June 30, 2019, compared to an expense of $1.2 million for the six-month period ended June 30, 20182019.

Foreign currency (gain) loss. Our historical revenues have primarily been denominated in U.S. dollars, and the majority of our current revenues continue to be, and are expected to remain, denominated in U.S. dollars. However, our operating expenses are generally denominated in the currencies of the countries in which our operations are located, and we have operations in countries other than the ~~U.S.,~~United States, primarily those operations related to our Headway business. As a result, we have operating expense, attributable to foreign currency, that is primarily related to the operations related to our Headway business. We had a foreign currency gain of $0.2 million for the three-month period ended June 30, 2020 compared to a foreign currency gain of $0.1 million for the three-month period ended June 30, 2019. ~~There was no currency impact during the three-month period ended June 30, 2018.~~ Foreign currency gain was primarily due to currency fluctuations that affected our digital segment operations located outside the ~~U.S.,~~United States, primarily related to ~~our~~the Headway business.

We had a foreign currency loss of $1.4 million for the six-month period ended June 30, 2020 compared to a foreign currency loss of $0.1 million for the six-month period ended June 30, ~~2019 compared to a foreign currency loss of $0.2 million for the six-month period ended June 30, 2018.~~2019. Foreign currency loss was primarily due to currency fluctuations that affected our digital segment operations located outside the U.S., primarily related to ~~our~~the Headway business.

Other operating gain. Other operating gain increased to $2.0 million for the three-month period ended June 30, 2020 from $1.6 million for the three-month period ended June 30, 2019, ~~from $0.3 million for the three-month period ended June 30, 2018,~~ primarily due to gains from the sale of certain assets (see Note 2 to Notes to Consolidated Financial Statements), and gains in connection with the required relocation of certain television stations to a different channel as part of the broadcast television repack following the FCC auction for broadcast spectrum.

Other operating gain ~~increased~~decreased to $2.9 million for the six-month period ended June 30, 2020 from $3.6 million for the six-month period ended June 30, 2019, ~~from $0.3 million for the six-month period ended June 30, 2018,~~ primarily due to a decrease in gains in connection with the required relocation of certain television stations to a different channel as part of the broadcast television repack following the FCC auction for broadcast ~~spectrum.~~spectrum, partially offset by gains from the sale of certain assets (see Note 2 to Notes to Consolidated Financial Statements).

Impairment. ~~Impairment~~ ~~charge related~~ Due to ~~goodwill~~the continuing economic crisis resulting from the COVID-19 pandemic, we experienced a decline in performance across all our reporting units beginning late in the first quarter of 2020. Additionally, the digital reporting unit was ~~$22.4 million for~~already facing declining results prior to the ~~three-~~onset of the pandemic, caused by continuing competitive pressures and six-month periods ended June 30, 2019. The write-down was pursuant to Accounting Standards Codification (ASC) 350, Intangibles – Goodwill and Other, which requires that goodwill and certain intangible assets be tested for impairment at least annually, or more frequently if events orrapid changes in ~~circumstances indicate~~ the ~~assets might be impaired.~~ ~~Due to lower than anticipated performance of our~~ digital ~~reporting unit~~advertising industry, which then further accelerated late in the ~~second~~ quarter as a result of ~~2019, changes~~the economic crisis brought about from the pandemic. The results of the television and radio reporting units’ results prior to the onset of the pandemic were exceeding internal budgets, driven in ~~key personnel, and~~large part by political advertising revenue, but declined sharply in the last few weeks of that quarter. As a result, we updated our internal forecasts of future performance ~~of our digital reporting unit, we~~and determined that triggering events had occurred during the ~~second~~first quarter of ~~2019~~2020 that required an interim impairment ~~assessment for our digital reporting unit~~.assessments related to goodwill, indefinite lived intangible assets and long-lived assets. As a result of these assessments, we recognized impairment charges totaling $39.8 million in the six-month period ended June 30, 2020. We did not recognize impairment charges in the three-month period ended June 30, 2020.

Operating Income (Loss). As a result of the above factors, operating loss was $1.4 million for the three-month period ended June 30, 2020, compared to operating loss of $11.6 million for the three-month period ended June 30, ~~2019, compared to operating income of $10.1 million for the three-month period ended June 30, 2018.~~2019. As a result of the above factors, operating loss was $36.7 million for the six-month period ended June 30, 2020, compared to operating loss of $6.6 million for the six-month period ended June 30, 2019 ~~compared to operating income of $9.8 million for the six-month period ended June 30, 2018.~~

Interest Expense, net. Interest expense, net decreased to ~~$2.6~~$1.5 million for the three-month period ended June 30, 2020 from $2.7 million for the three-month period ended June 30, 2019, ~~from $3.0 million for the three-month period ended June 30, 2018,~~ a decrease of ~~$0.4~~$1.2 million. This decrease was primarily due to ~~loan~~lower principal balance as a result of repayment in the fourth quarter of ~~2018.~~2019, and a lower interest rate.

Interest expense, net decreased to $3.5 million for the six-month period ended June 30, 2020 from $5.3 million for the six-month period ended June 30, 2019, ~~from $5.4 million~~a decrease of $1.8 million. This decrease was primarily due to lower principal balance as a result of repayment in the fourth quarter of 2019, and a lower interest rate.

Income Tax Benefit (Expense). Income tax benefit for the six-month period ended June 30, ~~2018, a decrease~~2020 was $6.9 million, or 17% of ~~$0.1 million. This decrease was primarily due to loan principal repayment in the fourth quarter of 2018.~~

~~Income Tax Benefit (Expense).~~ our pre-tax loss. Income tax expense for the six-month period ended June 30, 2019 was $3.3 million, or negative 29% of our pre-tax loss. ~~Income~~The effective tax ~~expense~~rate for the six-month period ended June 30, ~~2018~~2020 was ~~$1.7 million, or 35%~~different than our statutory rate due to foreign and state taxes, a valuation allowance on deferred tax assets in our Spanish entity, adjustments to our state tax return filings as a result of gain that was previously deferred, and nondeductible expenses, primarily goodwill impairment charges. We compute our ~~pre-tax income. ASC 740, “Income Taxes”, requires the Company to compute a worldwide annual~~interim tax expense by projecting our effective tax rate for the year and ~~apply that~~applying the projected annual effective tax rate to ~~worldwide year-to-date~~the year to date pre-tax income ~~(loss) with limited exceptions. In computing~~from continuing operations for the ~~Company’s 2019 second quarter~~reporting quarter. Additional “discrete" items (such as excess tax ~~provision, due~~benefits from share based compensation) may adjust the year to ~~the large non-deductible goodwill impairments recorded~~date tax expense in ~~Spain and the U.S. during~~ the quarter relative to the projected worldwide pretax income for the year, the Company believes it would be unreliable to compute its annual effective tax rate including those jurisdictions. Accordingly, Spain and the U.S. have been excluded from the annual effective tax rate calculation and computed discretely based on year-to-date activities. The annual effective tax rate on jurisdictions other than Spain and the U.S. differed from our statutory rate due to nondeductible expenses, and foreign tax rates that differ from the U.S. statutory rate.in which such items occur.

Our management periodically evaluates the realizability of the deferred tax assets and, if it is determined that it is more likely than not that the deferred tax assets are realizable, adjusts the valuation allowance accordingly. Valuation allowances are established and maintained for deferred tax assets on a “more likely than not” threshold. The process of evaluating the need to maintain a valuation allowance for deferred tax assets and the amount maintained in any such allowance is highly subjective and is based on many factors, several of which are subject to significant judgment calls. Based on our analysis we determined that it was more likely than not that our deferred tax assets would be ~~realized.~~realized for all jurisdictions with the exception of our digital operations located in Spain. As a result of recurring losses from our digital operations in Spain, management has determined that it is more likely than not that deferred tax assets of approximately $2.9 million at June 30, 2020 will not be realized and therefore we have established a valuation allowance on those assets.

~~The Company intends~~We intend to reinvest permanently ~~reinvest its~~our unremitted earnings in ~~its~~our foreign subsidiaries, and accordingly ~~has~~have not provided deferred tax liabilities on those earnings. ~~The Company has~~We have not yet determined ~~at this time~~ an estimate of the total amount of unremitted ~~earnings, as it is not practical at this time.~~earnings.

Net Revenue. Net revenue in our television segment ~~increased~~decreased to $27.0 million for the three-month period ended June 30, 2020 from $38.1 million for the three-month period ended June 30, ~~2019 from $36.5 million for the three-month period ended June 30, 2018, an increase~~2019. This decrease of approximately ~~$1.6~~$11.1 million, or ~~4%. The increase~~29%, in net revenue was ~~primarily due to an increase~~a result of decreases in revenue from spectrum usage rights and local and national advertising revenue, partially offset by aan increase in political advertising revenue and retransmission consent revenue. The decrease in local and national advertising revenue aswas primarily a result ~~in part~~ of the continuing economic crisis resulting from the COVID-19 pandemic, ratings declines, competitive factors with other Spanish-language broadcasters, and changing demographic preferences of audiences. ~~Additionally, there is~~We have previously noted a trend for advertising to move increasingly from traditional media, such as television, to new media, such as digital ~~media. The increase in revenue was also partially offset by a decrease in political advertising revenue, which was not material in 2019.~~media, and we expect this trend to continue. We generated a total of $9.4 million and $9.1 million in retransmission consent revenue for ~~each of~~ the three-month periods ended June 30, 2020 and 2019, ~~and 2018.~~respectively.

Net revenue in our television segment ~~increased~~decreased to $66.2 million for the six-month period ended June 30, 2020 from $76.3 million for the six-month period ended June 30, ~~2019 from $71.0 million for the six-month period ended June 30, 2018, an increase~~2019. This decrease of approximately ~~$5.3~~$10.1 million, or ~~7%. The increase~~13%, in net revenue was ~~primarily due to an increase~~a result of decreases in revenue from spectrum usage rights and ~~an increase in~~local and national advertising revenue, partially offset by aan increase in political advertising revenue and retransmission consent revenue. The decrease in local and national advertising revenue aswas primarily a result ~~in part~~ of the continuing economic crisis resulting from the COVID-19 pandemic, ratings declines, competitive factors with other Spanish-language broadcasters, and changing demographic preferences of audiences. ~~Additionally, there is~~We have previously noted a trend for advertising to move increasingly from traditional media, such as television, to new media, such as digital ~~media. The increase in revenue was also partially offset by a decrease in political advertising revenue, which was not material in 2019.~~media, and we expect this trend to continue. We generated a total of ~~$17.8~~$18.9 million and ~~$18.0~~$17.8 million in retransmission consent revenue for the six-month periods ended June 30, 2020 and 2019, ~~and 2018,~~ respectively.

Direct Operating Expenses. Direct operating expenses in our television segment ~~increased~~decreased to $13.1 million for the three-month period ended June 30, 2020 from $15.2 million for the three-month period ended June 30, 2019, ~~from $15.0 million for the three-month period ended June 30, 2018, an increase~~a decrease of approximately ~~$0.2~~$2.1 million. The ~~increase~~decrease was primarily due to ~~an increase~~decreases in ~~fees due to networks related to retransmission consent agreements~~salary expense and expenses associated with the decrease in advertising revenue.

Direct operating expenses in our television segment ~~decreased~~increased to $28.9 million for the six-month period ended June 30, 2020 from $30.1 million for the six-month period ended June 30, 2019, a decrease of approximately $1.2 million. The decrease was primarily due to decreases in salary expense and expenses associated with the decrease in advertising revenue.

Selling, General and Administrative Expenses. Selling, general and administrative expenses in our television segment decreased to $4.7 million for the three-month period ended June 30, 2020 from ~~$30.6~~$5.6 million for the three-month period ended June 30, 2019, a decrease of approximately $0.9 million. The decrease was primarily due to decreases in salary expense and payroll tax expense.

Selling, general and administrative expenses in our television segment decreased to $10.6 million for the six-month period endedJune 30, 2020 from $11.4 million for the six-month period ended June 30, ~~2018,~~2019, a decrease of approximately ~~$0.5~~$0.8 million. The decrease was primarily due to decreases in salary expense and payroll tax expense.

Net Revenue. Net revenue in our digital segment decreased to $11.4 million for the three-month period ended June 30, 2020 from $16.8 million for the three-month period ended June 30, 2019. This decrease of approximately $5.4 million, or 32%, in net revenue was a result of declines in international revenue and the continuing economic crisis resulting from the COVID-19 pandemic. We have previously noted a trend in our domestic digital operations whereby revenue is shifting more to programmatic revenue, and this trend is now growing in markets outside the United States. As a result, advertisers are demanding more efficiency and lower cost from intermediaries like us. In response to this trend, we are offering programmatic solutions to advertisers, which is putting pressure on margins. We expect this trend will continue in future periods, likely resulting in a permanent higher volume, lower margin business in our digital segment. The digital advertising industry remains dynamic and is continuing to undergo rapid changes in technology and competition. We expect this trend to continue and possibly accelerate. We must continue to remain vigilant to meet these dynamic and rapid changes including the need to further adjust our business strategies accordingly. No assurances can be given that such adjustments will be successful.

Net revenue in our digital segment decreased to $24.7 million for the six-month period ended June 30, 2020 from $31.3 million for the six-month period ended June 30, 2019. This decrease of approximately $6.6 million, or 21%, in net revenue was a result of declines in international revenue and the continuing economic crisis resulting from the COVID-19 pandemic. We have previously noted a trend in our domestic digital operations whereby revenue is shifting more to programmatic revenue, and this trend is now growing in markets outside the United States. As a result, advertisers are demanding more efficiency and lower cost from intermediaries like us. In response to this trend, we are offering programmatic solutions to advertisers, which is putting pressure on margins. We expect this trend will continue in future periods, likely resulting in a permanent higher volume, lower margin business in our digital segment. The digital advertising industry remains dynamic and is continuing to undergo rapid changes in technology and competition. We expect this trend to continue and possibly accelerate. We must continue to remain vigilant to meet these dynamic and rapid changes including the need to further adjust our business strategies accordingly. No assurances can be given that such adjustments will be successful.

Cost of revenue. Cost of revenue in our digital segment decreased to $6.4 million for the three-month period ended June 30, 2020 from $8.9 million for the three-month period ended June 30, 2019, a decrease of $2.5 million, primarily due to a decrease in expenses associated with the decrease in revenue. As a percentage of digital net revenue, cost of revenue increased to 57% for the three-month period ended June 30, 2020 from 53% for the three-month period ended June 30, 2019.

Cost of revenue in our digital segment decreased to $13.8 million for the six-month period ended June 30, 2020 from $16.5 million for the six-month period ended June 30, 2019, a decrease of $2.7 million, primarily due to a decrease in expenses associated

with the decrease in revenue. As a percentage of digital net revenue, cost of revenue increased to 56% for the six-month period ended June 30, 2020 from 53% for the six-month period ended June 30, 2019.

Direct operating expenses. Direct operating expenses in our digital segment decreased to $2.9 million for the three-month period ended June 30, 2020 from $5.0 million for the three-month period ended June 30, 2019, a decrease of $2.1 million. The decrease was primarily due to a decrease in expenses associated with the decrease in ~~advertising~~ revenue ~~partially offset by an increase~~and a decrease in ~~fees due to networks related to retransmission consent agreements.~~salary expense.

~~Selling, General and Administrative Expenses.~~ ~~Selling, general and administrative~~Direct operating expenses in our ~~television~~digital segment ~~remained constant at $5.6~~decreased to $6.1 million for ~~each of~~ the ~~three-month periods~~six-month period ended June 30, ~~2019 and June 30, 2018.~~

~~Selling, general and administrative expenses in our television segment decreased to $11.4~~2020 from $9.5 million for the six-month period ended June 30, 2019, ~~from $11.5 million for the six-month period ended June 30, 2018,~~ a decrease of ~~approximately $0.1~~$3.4 million. The decrease was primarily due to a decrease in expenses associated with the decrease in revenue and a decrease in salary expense.

Selling, general and administrative expenses. Selling, general and administrative expenses in our digital segment decreased to $3.2 million for the three-month period ended June 30, 2020 from $3.5 million for the three-month period ended June 30, 2019, a decrease of $0.3 million. The decrease was primarily due to a decrease salary expense.

Selling, general and administrative expenses in our digital segment increased to $6.9 million for the six-month period ended June 30, 2020 from $6.7 million for the six-month period ended June 30, 2019, an increase of $0.2 million. The increase was primarily due to an increase in bad debt expense.

Net Revenue. Net revenue in our radio segment decreased to $6.8 million for the three-month period ended June 30, 2020 from $14.4 million for the three-month period ended June 30, ~~2019 from $17.2 million for the three-month period ended June 30, 2018.~~2019. This decrease of approximately ~~$2.8~~$7.6 million, or ~~17%~~53%, in net revenue was primarily due to decreases in local and national advertising revenue, partially offset by an increase in political advertising revenue. The overall decrease was as a result ~~in part~~primarily of the continuing economic crisis resulting from the COVID-19 pandemic, ratings declines and competitive factors with other Spanish-language broadcasters, and changing demographic preferences of ~~audiences as well as~~ ~~the absence of revenue from the 2018 FIFA World Cup in 2019 compared to 2018. Additionally, there is~~audiences. We have previously noted a trend for advertising to move increasingly from traditional media, such as radio, to new media, such as digital ~~media.~~media, and we expect this trend to continue. This trend has had a more significant impact on our radio revenue as compared to television revenue, and we expect that this trend will also continue.

Net revenue in our radio segment decreased to $18.5 million for the six-month period ended June 30, 2020 from $26.3 million for the six-month period ended June 30, ~~2019 from $31.3 million for the six-month period ended June 30, 2018.~~2019. This decrease of approximately ~~$5.0~~$7.8 million, or ~~16%~~30%, in net revenue was primarily due to decreases in local and national advertising revenue, partially offset by an increase in political advertising revenue. The overall decrease was as a result ~~in part~~primarily of the continuing economic crisis resulting from the COVID-19 pandemic, ratings declines and competitive factors with other Spanish-language broadcasters, and changing demographic preferences of ~~audiences as well as~~ ~~the absence of revenue from the 2018 FIFA World Cup revenue in 2019 compared to 2018. Additionally, there is~~audiences. We have previously noted a trend for advertising to move increasingly from traditional media, such as radio, to new media, such as digital ~~media.~~media, and we expect this trend to continue. This trend has had a more significant impact on our radio revenue as compared to television revenue, and we expect that this trend will also continue.

Direct Operating Expenses. Direct operating expenses in our radio segment decreased to $6.1 million for the three-month period ended June 30, 2020 from $9.5 million for the three-month period ended June 30, 2019, ~~from $10.9 million for the three-month period ended June 30, 2018,~~ a decrease of ~~$1.4~~$3.4 million. The decrease was primarily due to ~~a decrease~~decreases in expenses associated with the decrease in advertising revenue and a decrease in salary expense.

Direct operating expenses in our radio segment decreased to $13.8 million for the six-month period ended June 30, 2020 from $19.0 million for the six-month period ended June 30, 2019, ~~from $21.6 million for the six-month period ended June 30, 2018,~~ a decrease of ~~$2.6~~$5.2 million. The decrease was primarily due to ~~a decrease~~decreases in expenses associated with the decrease in advertising revenue and a decrease in salary expense.

Selling, General and Administrative Expenses. Selling, general and administrative expenses in our radio segment decreased to $3.0 million for the three-month period ended June 30, 2020 from $4.4 million for the three-month period ended June 30, 2019, ~~from $4.5 million for the three-month period ended June 30, 2018,~~ a decrease of ~~$0.1~~$1.4 million. The decrease was primarily due to ~~a decrease~~decreases in salary expense and payroll tax expense.

Selling, general and administrative expenses in our radio segment ~~increased~~decreased to $7.0 million for the six-month period ended June 30, 2020 from $9.2 million for the six-month period ended June 30, 2019, from $9.1 million for the six-month period ended June 30, 2018, an increase of $0.1 million. The increase was primarily due to an increase in promotional expense, partially offset by a decrease in salary expense.

~~Net Revenue.~~ Net revenue in our digital segment decreased to $16.8 million for the three-month period ended June 30, 2019 from $20.6 million for the three-month period ended June 30, 2018. This decrease of approximately $3.8 million, or 18%, in net revenue was a result of declines in both international and domestic revenue. We have previously noted a trend in our domestic digital operations whereby revenue is shifting more to automated self-service platforms, referred to in our industry as programmatic revenue, and this trend is now growing in markets outside the U.S. As a result, advertisers are demanding more efficiency and lower cost from intermediaries like us, which is putting pressure on margins. In response to this, we have started to offer programmatic solutions to advertisers and strategically shift the focus of our other digital offerings to focus on generating revenue with lower associated cost of revenue. This has contributed to a decline in the volume of revenue but led to improvement in the gross margin percentage. The digital advertising industry is dynamic and undergoing rapid changes in technology and competition and we expect this trend to continue. We must remain adaptable to meet these dynamic and rapid changes and may need to adjust our business strategies accordingly.

Net revenue in our digital segment decreased to $31.3 million for the six-month period ended June 30, 2019 from $38.8 million for the six-month period ended June 30, 2018. This decrease of approximately $7.5 million, or 19%, in net revenue was a result of declines in both international and domestic revenue. We have previously noted a trend in our domestic digital operations whereby revenue is shifting more to automated self-service platforms, referred to in our industry as programmatic revenue, and this trend is now growing in markets outside the U.S. As a result, advertisers are demanding more efficiency and lower cost from intermediaries like us, which is putting pressure on margins. In response to this, we have started to offer programmatic solutions to advertisers and strategically shift the focus of our other digital offerings to focus on generating revenue with lower associated cost of revenue. This has contributed to a decline in the volume of revenue but led to improvement in the gross margin percentage. The digital advertising industry is dynamic and undergoing rapid changes in technology and competition and we expect this trend to continue. We must remain adaptable to meet these dynamic and rapid changes and may need to adjust our business strategies accordingly.

~~Cost of revenue. Cost of revenue in our digital segment decreased to $8.9 million for the three-month period ended June 30, 2019 from $11.4 million for the three-month period ended June 30, 2018,~~ a decrease of $2.5 million, primarily due to the decrease in revenue. As a percentage of digital net revenue, cost of revenue decreased to 53% for the three-month period ended June 30, 2019 from 55% for the three-month period ended June 30, 2018. This decrease as a percentage of net revenue is a result of a strategic shift in our digital business designed to focus on generating revenue with lower associated costs to produce higher margins.

Cost of revenue in our digital segment decreased to $16.5 million for the six-month period ended June 30, 2019 from $22.0 million for the six-month period ended June 30, 2018, a decrease of $5.5 million, primarily due to the decrease in revenue. As a percentage of digital net revenue, cost of revenue decreased to 53% for the six-month period ended June 30, 2019 from 57% for the six-month period ended June 30, 2018. This decrease as a percentage of net revenue is a result of a strategic shift in our digital business designed to focus on generating revenue with lower associated costs to produce higher margins.

~~Direct operating expenses~~. Direct operating expenses in our digital segment decreased to $5.0 million for the three-month period ended June 30, 2019 from $5.1 million for the three-month period ended June 30, 2018, a decrease of $0.1$2.2 million. The decrease was primarily due to ~~a decrease~~decreases in ~~expenses associated with the decrease in revenue.~~

Direct operating expenses in our digital segment decreased to $9.5 million for the six-month period ended June 30, 2019 from $10.0 million for the six-month period ended June 30, 2018, a decrease of $0.5 million. The decrease was primarily due to a decrease in expenses associated with the decrease in revenue.

~~Selling, general and administrative expenses~~. Selling, general and administrative expenses in our digital segment increased to $3.5 million for the three-month period ended June 30, 2019 from $2.6 million for the three-month period ended June 30, 2018, an increase of $0.9 million. The increase was primarily due to an increase in severance expense.

Selling, general and administrative expenses in our digital segment increased to $6.7 million for the six-month period ended June 30, 2019 from $5.3 million for the six-month period ended June 30, 2018, an increase of $1.4 million. The increase was primarily due to an increase in severancesalary expense and ~~an increase in bad debt expense in the first quarter.~~payroll tax expense.

While we have a history of operating losses in some periods and operating income in other periods, we also have a history of generating significant positive cash flows from our operations. We had a net loss of $19.7 million for the year ended December 31, 2019, and net income of $12.2 million ~~$175.7 million,~~ and ~~$20.4~~$175.7 million for the years ended December 31, 2018 ~~2017~~ and ~~2016,~~2017, respectively. We had positive cash flow from operations of $31.5 million, $33.8 million ~~$301.5 million~~ and ~~$57.3~~$301.5 million for the years ended December 31, 2019, 2018 ~~2017~~ and ~~2016,~~2017, respectively. We generated cash flows from operations of ~~$19.7~~$19.5 million for the six-month period ended June 30, ~~2019. We~~2020. For at least the next twelve months, we expect to fund our working capital requirements, capital expenditures and payments of principal and interest on outstanding indebtedness, with cash on hand and cash flows from operations. ~~We currently~~

Although we anticipate that ~~funds generated~~revenue and cash flow from operations will decrease significantly due to the continuing economic crisis resulting from the COVID-19 pandemic and the continuing effects of that crisis, depending upon its extent and duration, we currently believe that our current cash ~~on hand and available borrowings under~~position is capable of meeting our ~~2017 Credit Facility will be sufficient to meet our anticipated cash requirements~~expenses for at least the next twelve months. ~~At June 30, 2019, we held~~We believe that our position is strengthened by cash and cash equivalents on hand, in the amount of ~~$7.3~~$69.3 million, and available for sale marketable securities in ~~accounts outside~~ the ~~United States.~~additional amount of $65.1 million, as of June 30, 2020. Our liquidity is not materially impacted by the amount held in accounts outside the United States as our operating cash flows are driven primarily by U.S. sources.

On November 30, 2017 (the “Closing Date”), we entered into our 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 we 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 our first lien net leverage ratio (as such term is used in the 2017 Credit Agreement) not exceeding 4.0 to 1.0, subject to us satisfying certain conditions.

Borrowings under the Term Loan B Facility were used on the Closing Date (a) to ~~(a)~~ repay in full all of our and our subsidiaries’ then outstanding obligations under the previous 2013 credit agreement, or 2013 Credit Agreement, and to terminate 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 our existing and future wholly-owned domestic subsidiaries, and is secured on a first priority basis by our and those subsidiaries’ assets.

Our borrowings under the 2017 Credit Facility bear interest on the outstanding principal amount thereof from the date when made at a rate per annum equal to either: (i) the Eurodollar Rate (as defined in the 2017 Credit Agreement) plus 2.75%; or (ii) the Base Rate (as defined in the 2017 Credit Agreement) plus 1.75%. As of June 30, ~~2019,~~2020, the interest rate on our Term Loan B was ~~5.09%~~2.92%. 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 our option without premium or penalty, provided that certain limitations are observed, and subject to customary breakage fees in connection with the prepayment of a Eurodollar rate loan. The principal amount of the Term Loan B Facility shall be paid in installments on the dates and in the respective amounts set forth in the 2017 Credit Agreement, with the final balance due on the Maturity Date.

Subject to certain exceptions, the 2017 Credit Facility contains covenants that limit the ability of us and our restricted subsidiaries to, among other things:

The 2017 Credit Facility also provides for certain customary events of default, including the following:

financial covenants. In connection with our entering into the 2017 Credit Agreement, we and our restricted subsidiaries also entered into a Security Agreement, pursuant to which we 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, we entered into an amendment to the 2017 Credit Agreement, which became effective on May 1, 2019. ~~Pursuant to this amendment, the lenders:~~

On May 7, 2019, we filed our Annual Report on Form 10-K for the fiscal year ended December 31, 2018, which Annual Report contained the 2018 audited financial statements. By filing our Annual Report on Form 10-K prior to May 31, 2019, we believe that we have complied with the affirmative covenants in the amendment to the 2017 Credit Agreement regarding delivery of the 2018 audited financial statements.

Pursuant to this amendment, we agreed to pay to the lenders consenting to this amendment a fee equal to 0.10% of the aggregate principal amount of the outstanding loans held by such lenders under the 2017 Credit Agreement as of May 1, 2019. This fee totaled approximately $0.2 million.

The carrying amount of the Term Loan B Facility as of June 30, ~~2019~~ 2020 was $~~242.0~~214.7 million, net of ~~$2.7~~$2.0 million of unamortized debt issuance costs and original issue discount. The estimated fair value of the Term Loan B Facility as of June 30, ~~2019~~ 2020 was $~~233.7~~214.0 million. The estimated fair value is based on quoted prices in markets where trading occurs infrequently.

On July 13, 2017, our Board of Directors approved a share repurchase program of up to $15.0 million of our outstanding Class A common stock. On April 11, 2018, our Board of Directors approved the repurchase of up to an additional $15.0 million of our outstanding Class A common stock, for a total repurchase authorization of up to $30.0 million. On August 27, 2019, the Board of Directors approved the repurchase of up to an additional $15.0 million of the Company’s Class A common stock, for a total repurchase authorization of up to $45.0 million. Under the share repurchase program we are authorized to purchase shares from time to time through open market purchases or negotiated purchases, subject to market conditions and other factors. The share repurchase program may be suspended or discontinued at any time without prior notice. On March 26, 2020, we suspended share repurchases under the planin order to preserve cash during the continuing economic crisis resulting from the COVID-19 pandemic.

In the three-month period ended June 30, ~~2019,~~2020, we ~~repurchased 0.4 million~~did not repurchase any shares of our Class A common ~~stock for an aggregate purchase price of $1.3 million, or an average price per share of $2.95.~~stock. As of June 30, ~~2019,~~2020, we have repurchased a total of approximately ~~7.0~~8.6 million shares of our Class A common stock for aggregate purchase price of approximately ~~$28.1~~$32.2 million, or an average price per share of ~~$3.98,~~$3.76, since the beginning of the share repurchase program. ~~All~~As of June 30, 2020, all such repurchased shares were ~~retired as of June 30, 2019.~~retired.

Consolidated adjusted EBITDA (as defined below) decreased to $11.4 million for the six-month period ended June 30, 2020 compared to $20.6 million for the six-month period ended June 30, ~~2019 compared to $21.8 million for the six-month period ended June 30, 2018.~~2019. As a percentage of net revenue, consolidated adjusted EBITDA ~~was~~decreased to 10% for the six-month period ended June 30, 2020 compared to 15% for the six-month ~~periods~~period ended June 30, 2019 ~~and 2018.~~.

Consolidated adjusted EBITDA, as defined in our 2017 Credit Agreement, means net income (loss) plus gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation included in operating and corporate expenses, net interest expense, other income (loss), non-recurring cash expenses, gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from FCC spectrum incentive auction less related expenses, expenses associated with investments, acquisitions and dispositions and certain pro-forma cost savings. We use the term consolidated adjusted EBITDA because that measure is defined in our 2017 Credit Agreement and does not include gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation, net interest expense, other income (loss), non-recurring cash expenses, gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from FCC spectrum incentive auction less related expenses, expenses associated with investments, acquisitions and dispositions and certain pro-forma cost savings.

Since consolidated adjusted EBITDA is a measure governing several critical aspects of our 2017 Credit Facility, we believe that it is important to disclose consolidated adjusted EBITDA to our investors. We may increase the aggregate principal amount outstanding by an additional amount equal to $100.0 million plus the amount that would result in our total net leverage ratio, or the ratio of consolidated total senior debt (net of up to $75.0 million of unrestricted cash) to trailing-twelve-month consolidated adjusted EBITDA, not exceeding 4.0. In addition, beginning December 31, 2018, at the end of every calendar year, in the event our total net leverage ratio is within certain ranges, we must make a debt prepayment equal to a certain percentage of our Excess Cash Flow, which is defined as consolidated adjusted EBITDA, less consolidated interest expense, less debt principal payments, less taxes paid, less other amounts set forth in the definition of Excess Cash Flow in the 2017 Credit Agreement. The total leverage ratio was as follows (in each case as of June 30): ~~2019, 3.2~~2020, 4.4 to 1; ~~2018, 4.9~~2019, 3.2 to 1.

Consolidated adjusted EBITDA is a non-GAAP measure. For a reconciliation of consolidated adjusted EBITDA to cash flows from operating activities, its most directly comparable GAAP financial measure, please see page ~~31.~~35.

Net cash flow provided by operating activities was ~~$19.7~~$19.5 million for the six-month period ended June 30, ~~2019~~,2020, compared to net cash flow provided by operating activities of ~~$16.9~~$19.7 million for the six-month period ended June 30, ~~2018~~2019. We had a net loss of $33.3 million for the six-month period ended June 30, 2020, which included non-cash items such as impairment loss of $39.8 million, depreciation and amortization expense of $8.4 million and non-cash stock-based compensation of $1.6 million. We had a net loss of $14.9 million for the six-month period ended June 30, 2019,, which included non-cash items such as impairment loss of $22.4 million with respect to our digital reporting unit, depreciation and amortization expense of $8.2 million and non-cash stock-based compensation of $1.6 ~~million~~. We had net income of $3.0 million for the six-month period ended June 30, 2018, which included non-cash items such as depreciation and amortization expense of $8.0 million and non-cash stock-based compensation of $2.4 million. We currently expect ~~to have positive~~that cash flow from operating activities for the full year ~~2019.~~2020 will decrease compared to 2019 due to the continuing economic crisis resulting from the COVID-19 pandemic, and the continuing effects of that crisis, depending upon its extent and duration.

Net cash flow provided by investing activities was $25.0 million for the six-month period ended June 30, 2020, compared to net cash flow provided by investing activities of $6.2 million for the six-month period ended June 30, ~~2019, compared to net cash flow used in investing activities of $146.8 million for the six-month period ended~~ ~~June 30, 2018~~.2019. During the six-month period ended June 30, 2020, we had proceeds of $26.9 million from the maturity of marketable securities and proceeds of $4.0 million from the sale of television station KMCC-TV, spent $5.7 million in net capital expenditures and spent $0.2 million to purchase intangible assets. During the six-month period ended June 30, 2019,, we had proceeds of $21.7 million from the maturity of marketable securities, spent $14.0 million in net capital expenditures and spent $1.2 million to purchase marketable securities. During the six-month period ended June 30, 2018, we spent $159.4 million to purchase of marketable securities, $3.6 million on the acquisition of Smadex, $5.7 million on net capital expenditures and $3.2 million on the purchase of intangible assets and received $25.0 million in proceeds from the maturity of marketable securities. We anticipate that our capital expenditures will be approximately ~~$20.8~~$7.5 million during the full year ~~2019.~~2020. Of this amount, we expect that approximately ~~$6.3~~$3.2 million will be expended in connection with the required relocation of certain of our television stations to a different channel as part of the broadcast television repack following the FCC auction for broadcast spectrum, which amount we expect to be reimbursed to us by the FCC. The amount of our anticipated capital expenditures may change based on future changes in business plans, our financial condition and general economic conditions. We expect to fund capital expenditures with cash on hand and any net cash flow from operations.

Net cash flow used in financing activities was ~~$20.0~~$8.4 million for the six-month period ended June 30, ~~2019,~~2020, compared to net cash flow used in financing activities of ~~$22.3~~$20.0 million for the six-month period ended June 30, ~~2018~~.2019. During the six-month period ended June 30, 2020, we made dividend payments of $6.3 million, principal debt repayments of $1.5 million, and spent $0.5 million for the repurchase of Class A common stock. During the six-month period ended June 30, 2019,, we made dividend payments of $8.5 million, principal debt ~~repayments~~payments of $1.5 million and spent $9.0 million for the repurchase of Class A common stock and $0.8 million for taxes related to shares withheld for share-based compensation plans. During the six-month period ended June 30, 2018, we made dividend payments of $9.0 million, and spent $7.7 million for the repurchase of Class A common stock under our stock repurchase program, and $2.2 million for taxes related to shares withheld for share-based compensation plans, and made contingent consideration payments of $2.0 million and principal debt repayments of $1.5 million.

Market risk represents the potential loss that may impact our financial position, results of operations or cash flows due to adverse changes in the financial markets. We are exposed to market risk from changes in the base rates on our Term Loan B.

As of June 30, ~~2019,~~2020, we had ~~$244.7~~$216.7 million of variable rate bank debt outstanding under our 2017 Credit Facility. The debt bears interest at the three-month Eurodollar rate plus a margin of 2.75%.

Because our debt is subject to interest at a variable rate, our earnings will be affected in future periods by changes in interest rates. If the Eurodollar were to increase by a hypothetical 100 basis points, or one percentage point, from its June 30, ~~2019~~2020 level, our annual interest expense would increase and cash flow from operations would decrease by approximately ~~$2.5~~$2.2 million based on the outstanding balance of our term loan as of June 30, ~~2019.~~2020.

We have foreign currency risks related to our revenue and operating expenses denominated in currencies other than the U.S. dollar. Our historical revenues have primarily been denominated in U.S. dollars, and the majority of our current revenues continue to be, and are expected to remain, denominated in U.S. dollars. However, we have operations in countries other than the ~~U.S.,~~United States, primarily related to our Headway business, and as a result we expect an increasing portion of our future revenues to be denominated in currencies other than the U.S. dollar, primarily the Mexican peso, Argentine peso and various other Latin American currencies. The effect of an immediate and hypothetical 10% adverse change in foreign exchange rates on foreign-denominated accounts receivable at June 30, ~~2019~~2020 would not be material to our overall financial condition or consolidated results of operations. Our operating expenses are generally denominated in the currencies of the countries in which our operations are located, primarily the United States and, to a much lesser extent, Spain, Mexico, Argentina and other Latin American countries. Increases and decreases in our foreign-denominated revenue from movements in foreign exchange rates are partially offset by the corresponding decreases or increases in our foreign-denominated operating expenses.

Based on recent inflation trends, the economy in Argentina has been classified as highly inflationary. As a result, the Company applied the guidance in ASC 830 by remeasuring non-monetary assets and liabilities at historical exchange rates and monetary-assets and liabilities using current exchange rates (see Note 2 to Notes to Consolidated Financial Statements).

As our international operations grow, our risks associated with fluctuation in currency rates will become greater, and we will continue to reassess our approach to managing this risk. In addition, currency fluctuations or a weakening U.S. dollar can increase the amount of operating expense of our international operations, primarily those related to our Headway business. To date, we have not entered into any foreign currency hedging contracts, since exchange rate fluctuations historically have not had a material impact on our operating results and cash flows.

We conducted an evaluation, under the supervision and with the participation of management, including our chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this quarterly report. Based on this evaluation, our chief executive officer and chief financial officer concluded that, as of the evaluation date, our disclosure controls and procedures were not effective due to a material ~~weaknesses~~weakness in our internal control over financial reporting identified in our Annual Report on Form 10-K for the year ended December 31, ~~2018,~~2019, as described below.

Notwithstanding the conclusion that our disclosure controls and procedures were not effective as of the end of the period covered by this report, we believe that our consolidated financial statements and other information contained in this quarterly report present fairly, in all material respects, our business, financial condition and results of operations for the interim periods presented.

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company's annual or interim financial statements will not be prevented or detected on a timely basis.

As previously disclosed in our Annual Report on Form 10-K for the year ended December 31, ~~2018, the following material weaknesses existed as of that date:~~

~~Management has discussed~~With respect to the material ~~weaknesses~~control weakness described above, ~~with~~management has continued to test and evaluate the ~~Audit Committee and has identified certain steps necessary~~elements of the remediation plan implemented to ~~remediate the material weaknesses. Management has started to implement those steps, which include the following:~~date, as further described below. These elements include:

We ~~believe~~have designed and implemented the above changes. However, these changes have not been operating long enough to evaluate their operating effectiveness and are subject to continued management review, supported by confirmation and testing, as well as continued Audit Committee oversight. Based on management’s review and the oversight of the Audit Committee to date, we have determined that, ~~a remediation plan incorporating~~although substantial progress has been made in remediating this material weakness, the ~~measures described above will remediate~~weakness has not been fully remediated as of the ~~material weaknesses previously identified and strengthen our internal control over financial reporting.~~ date of this quarterly report.

As we ~~finalize and~~ continue to ~~implement~~further evaluate and test the remediation plan outlined above, we may also identify additional measures to address the material ~~weaknesses~~weakness or modify certain of the remediation procedures described above. We also may ~~also~~ implement additional changes to our internal control over financial reporting as may be appropriate in the course of remediating the material ~~weaknesses.~~weakness. Management, ~~will continue to review our financial reporting controls and procedures and,~~ with the ~~input outside consultants and the continued~~ oversight of the Audit Committee, will continue to take ~~such additional~~ steps as necessary to remedy the material ~~weaknesses previously identified,~~weakness to reinforce the overall design and capability of our control environment.

Our management, including our chief executive officer and chief financial officer, does not expect that our disclosure controls or our internal control over financial reporting will prevent or detect all errors and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

Other than changes noted above to remediate the previously-identified material weaknesses, there have not been any changes in our internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

We are 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 that may arise out of or with respect to these matters will not materially adversely affect our financial position, results of operations or cash flows.

On July 13, 2017, our Board of Directors approved a share repurchase program of up to $15.0 million of our outstanding Class A common stock. On April 11, 2018, our Board of Directors approved the repurchase of up to an additional $15.0 million of our Class A common stock, for a total repurchase authorization of up to $30.0 million. On August 27, 2019, the Board of Directors approved the repurchase of up to an additional $15.0 million of the Company’s Class A common stock, for a total repurchase authorization of up to $45.0 million. Under the share repurchase program we are authorized to purchase shares from time to time through open market purchases or negotiated purchases, subject to market conditions and other factors. The share repurchase program may be suspended or discontinued at any time without prior notice. On March 26, 2020, we suspended share repurchases under the planin order to preserve cash during the continuing economic crisis resulting from the COVID-19 pandemic.

In the three-month period ended June 30, ~~2019,~~2020, we ~~repurchased 0.4 million~~did not repurchase any shares of our Class A common ~~stock for an aggregate purchase price of $1.3 million, or an average price per share of $2.95.~~stock. As of June 30, ~~2019,~~2020, we have repurchased a total of approximately ~~7.0~~8.6 million shares of our Class A common stock for an aggregate purchase price of approximately ~~$28.1~~$32.2 million, or an average price per share of ~~$3.98,~~$3.76, since the beginning of the share repurchase program. ~~All~~ As of June 30, 2020, all such repurchased shares were ~~retired as of June 30, 2019.~~retired.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

~~Title of each class~~	~~Trading Symbol(s)~~	~~Name of each exchange on which registered~~
~~Class A Common stock~~	~~EVC~~	~~The New York Stock Exchange~~


~~Large accelerated filer~~	☐	~~Accelerated filer~~	☒
~~Non-accelerated filer~~	☐	~~Smaller reporting company~~	☐
		~~Emerging growth company~~	☐

		~~Page~~ ~~Number~~
	~~PART I. FINANCIAL INFORMATION~~
~~ITEM 1.~~	~~FINANCIAL STATEMENTS~~	4
	~~CONSOLIDATED BALANCE SHEETS (UNAUDITED) AS OF JUNE 30, 2019 AND DECEMBER 31, 2018~~	4
	~~CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE- AND SIX-MONTH PERIODS ENDED JUNE 30, 2019 AND JUNE 30, 2018~~	5
	~~CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) FOR THE THREE- AND SIX-MONTH PERIODS ENDED JUNE 30, 2019 AND JUNE 30, 2018~~	6
	~~CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED) FOR THE THREE- AND SIX-MONTH PERIODS ENDED JUNE 30, 2019 AND JUNE 30, 2018~~	7
	~~CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2019 AND JUNE 30, 2018~~	9
	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)~~	10
~~ITEM 2.~~	~~MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS~~	26
~~ITEM 3.~~	~~QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK~~	40
~~ITEM 4.~~	~~CONTROLS AND PROCEDURES~~	41
	~~PART II. OTHER INFORMATION~~
~~ITEM 1.~~	~~LEGAL PROCEEDINGS~~	43
~~ITEM 1A.~~	~~RISK FACTORS~~	43
~~ITEM 2.~~	~~UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS~~	43
~~ITEM 3.~~	~~DEFAULTS UPON SENIOR SECURITIES~~	43
~~ITEM 4.~~	~~MINE SAFETY DISCLOSURES~~	43
~~ITEM 5.~~	~~OTHER INFORMATION~~	43
~~ITEM 6.~~	~~EXHIBITS~~	44

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Class A Common stock		EVC		The New York Stock Exchange


Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☒
		Emerging growth company	☐

		Page Number
	PART I. FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS	4
	CONSOLIDATED BALANCE SHEETS (UNAUDITED) AS OF JUNE 30, 2020 AND DECEMBER 31, 2019	4
	CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE- AND SIX-MONTH PERIODS ENDED JUNE 30, 2020 AND JUNE 30, 2019	5
	CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) FOR THE THREE- AND SIX-MONTH PERIODS ENDED JUNE 30, 2020 AND JUNE 30, 2019	6
	CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED) FOR THE THREE-AND SIX-MONTH PERIODS ENDED JUNE 30, 2020 AND JUNE 30, 2019	7
	CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE THREE- AND SIX-MONTH PERIODS ENDED JUNE 30, 2020 AND JUNE 30, 2019	9
	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)	10
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	28
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	45
ITEM 4.	CONTROLS AND PROCEDURES	45
	PART II. OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS	47
ITEM 1A.	RISK FACTORS	47
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	47
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	47
ITEM 4.	MINE SAFETY DISCLOSURES	47
ITEM 5.	OTHER INFORMATION	47
ITEM 6.	EXHIBITS	48


	Six-Month Period
	Ended June 30, 2019
	Number Granted		Weighted-Average Fair Value
Restricted stock units		178	$	3.14



	Six-Month Period
	Ended June 30, 2020
	Number Granted		Weighted Average Fair Value
Restricted stock units		287	$	1.67

	December 31, 2019		Impairment			Assets Sold			June 30, 2020
Television	$	157,165	$	(23,457	)	$	(3,434	)	$	130,274
Radio		95,379		(8,800	)		-			86,579
Digital	-			-			-		-
Consolidated	$	252,544	$	(32,257	)	$	(3,434	)	$	216,853

(in thousands)	Amount
2019	$10,432
2020		10,677
2021		8,507
2022		7,560
2023		6,137
2024 and thereafter		38,515
	$81,828

10.1*		~~Executive Employment Agreement effective as of May 13, 2019 by and between the registrant and Karl Meyer.~~

31.1*		Certification by the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934.

31.2*		Certification by the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934.

32*		Certification of Periodic Financial Report by the Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS*		Inline XBRL Instance Document.

101.SCH*		Inline XBRL Taxonomy Extension Schema Document.

101.CAL*		Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.LAB*		Inline XBRL Taxonomy Extension Label Linkbase Document.

101.PRE*		Inline XBRL Taxonomy Extension Presentation Linkbase Document.

101.DEF*		Inline XBRL Taxonomy Extension Definition Linkbase.

104		Cover Page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101).

ENTRAVISION COMMUNICATIONS CORPORATION

By:		/s/ Christopher T. Young
		Christopher T. Young Chief Financial Officer and Treasurer