SANTA MONICA, Calif.--(BUSINESS WIRE)--Entravision Communications Corporation (NYSE: EVC), a media and advertising technology company, today announced financial results for the three- and nine-month periods ended September 30, 2024.
"During the third quarter we realigned our operating segments into two segments: Media and Advertising Technology & Services. Our media segment consists of sales of advertising through various media, including television, radio and digital. Our advertising technology & services segment consists of Smadex, our programmatic ad purchasing platform, and Adwake, our mobile growth solutions business," said Michael Christenson, Chief Executive Officer.
Mr. Christenson continued, "Our net revenue from continuing operations increased 25% in the third quarter of 2024 compared to the same quarter in 2023, driven primarily by growth in political advertising revenue and Smadex. Our balance sheet remains strong, and we are focused on providing highly-rated news and content to our audiences, strengthening our digital marketing solutions in combination with our television and radio offerings, and continuing to grow Smadex."
Unaudited Financial Highlights (In thousands, except share and per share data)
|
Three-Month Period |
|
Nine-Month Period |
||||||||||||||||||||
|
Ended September 30, |
|
Ended September 30, |
||||||||||||||||||||
|
2024 |
|
2023 |
|
% Change |
|
2024 |
|
2023 |
|
% Change |
||||||||||||
Net revenue |
$ |
97,156 |
|
|
$ |
77,420 |
|
|
|
25 |
% |
|
$ |
257,986 |
|
|
$ |
218,787 |
|
|
|
18 |
% |
Cost of revenue (1) |
|
26,801 |
|
|
|
21,393 |
|
|
|
25 |
% |
|
|
73,883 |
|
|
|
57,910 |
|
|
|
28 |
% |
Operating expenses (2) (5) |
|
52,729 |
|
|
|
40,648 |
|
|
|
30 |
% |
|
|
144,983 |
|
|
|
121,523 |
|
|
|
19 |
% |
Corporate expenses (3) (5) |
|
6,930 |
|
|
|
13,292 |
|
|
|
(48 |
)% |
|
|
29,989 |
|
|
|
35,836 |
|
|
|
(16 |
)% |
Foreign currency (gain) loss |
|
(121 |
) |
|
|
269 |
|
|
* |
|
|
120 |
|
|
|
1,274 |
|
|
|
(91 |
)% |
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss) from continuing operations |
$ |
(10,841 |
) |
|
$ |
(6,103 |
) |
|
|
78 |
% |
|
$ |
(14,619 |
) |
|
$ |
(19,945 |
) |
|
|
(27 |
)% |
Net income (loss) from discontinued operations, net of tax |
$ |
(1,139 |
) |
|
$ |
8,822 |
|
|
* |
|
$ |
(77,931 |
) |
|
$ |
22,716 |
|
|
* |
||||
Net income (loss) attributable to common stockholders |
$ |
(11,980 |
) |
|
$ |
2,719 |
|
|
* |
|
$ |
(92,550 |
) |
|
$ |
2,771 |
|
|
* |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash flows from operating activities |
$ |
10,851 |
|
|
$ |
22,026 |
|
|
|
(51 |
)% |
|
$ |
61,922 |
|
|
$ |
69,117 |
|
|
|
(10 |
)% |
Free cash flow (4) |
$ |
9,299 |
|
|
$ |
17,003 |
|
|
|
(45 |
)% |
|
$ |
55,633 |
|
|
$ |
49,236 |
|
|
|
13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss) per share from continuing operations, basic and diluted |
$ |
(0.12 |
) |
|
$ |
(0.07 |
) |
|
|
71 |
% |
|
$ |
(0.16 |
) |
|
$ |
(0.23 |
) |
|
|
(30 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss) per share from discontinued operations, basic and diluted |
$ |
(0.01 |
) |
|
$ |
0.10 |
|
|
* |
|
$ |
(0.87 |
) |
|
$ |
0.26 |
|
|
* |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss) per share attributable to common stockholders, basic and diluted |
$ |
(0.13 |
) |
|
$ |
0.03 |
|
|
* |
|
$ |
(1.03 |
) |
|
$ |
0.03 |
|
|
* |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Weighted average common shares outstanding, basic and diluted |
|
89,987,110 |
|
|
|
87,995,567 |
|
|
|
|
|
89,776,075 |
|
|
|
87,803,770 |
|
|
|
||||
(1) |
Consists of the costs of online media acquired from third-party publishers. Media cost is classified as cost of revenue in the period in which the corresponding revenue is recognized. |
|
(2) |
Operating expenses include direct operating and selling, general and administrative expenses. Included in operating expenses are $2.1 million and $2.3 million of non-cash stock-based compensation for the three-month periods ended September 30, 2024 and 2023, respectively, and $5.0 million and $6.0 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2024 and 2023, respectively. |
|
(3) |
Corporate expenses include $1.6 million and $4.4 million of non-cash stock-based compensation for the three-month periods ended September 30, 2024 and 2023, respectively, and $8.0 million and $9.8 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2024 and 2023, respectively. |
|
(4) |
Free cash flow is defined as cash flows from operating activities less cash paid for capital expenditures. |
|
(5) |
Effective July 1, 2024, with the realignment of our operations and reassignment of certain responsibilities, certain costs that were previously included as corporate expenses, primarily salaries, are now included in operating expenses. |
Net revenue for the three- and nine-month periods ended September 30, 2024 increased primarily due to an increase in advertising revenue from our media segment, and an increase in advertising revenue from our advertising technology & services segment. The increase was partially offset by decreases in spectrum usage rights revenue and retransmission consent revenue in our media segment.
Cost of revenue for the three- and nine-month periods ended September 30, 2024 increased primarily due to the increase in digital advertising revenue.
Operating expenses for the three- and nine-month periods ended September 30, 2024 increased primarily due to an increase in salaries, primarily associated with the expansion of our news programming in our media segment, and increases in salaries and cloud infrastructure expenses associated with the increase in revenue in our advertising technology & services segment. Additionally, effective July 1, 2024, with the realignment of our operations and reassignment of certain responsibilities, certain costs that were previously included as corporate expenses, primarily salaries, are now included in operating expenses.
Corporate expenses for the three-month period ended September 30, 2024 decreased primarily due to a decrease in salaries and bonus expense, a decrease in non-cash stock-based compensation, a decrease in professional services expense, and a decrease due to the realignment of our operations as noted above. This decrease was partially offset by an increase in audit fees.
Corporate expenses for the nine-month period ended September 30, 2024 decreased primarily due to a decrease in salaries and bonus expense, a decrease in non-cash stock-based compensation, a decrease in professional services expense, and a decrease due to the realignment of our operations as noted above. This decrease was partially offset by an increase in severance expense.
New Operating Segments
Effective July 1, 2024, we have realigned our operating segments into two segments – media and advertising technology & services – consistent with our current operational and management structure. Our media segment consists of sales of advertising through various media, including television, radio and digital. We own and/or operate 49 primary television stations and 44 radio stations (37 FM and 7 AM), reaching and engaging U.S. Latinos. Our advertising technology & services segment consists of programmatic ad services through Smadex, our demand side programmatic ad platform, and Adwake, our mobile growth solutions business.
Quarterly Cash Dividend
The Company announced today that its Board of Directors approved a quarterly cash dividend to shareholders of $0.05 per share on the Company's Class A and Class U common stock, in an aggregate amount of $4.5 million. The quarterly dividend will be payable on December 31, 2024 to shareholders of record as of the close of business on December 16, 2024. The Company currently anticipates that future cash dividends will be paid on a quarterly basis; however, any decision to pay future cash dividends will be subject to approval by the Board.
Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures as defined by SEC Regulation G. These non-GAAP financial measures include Consolidated EBITDA and Free Cash Flow. The GAAP financial measure most directly comparable to each of these non-GAAP financial measures, and a table reconciling each of these non-GAAP financial measures to its most directly comparable GAAP financial measure is included beginning on page 8.
Consolidated EBITDA
We use the term “consolidated EBITDA” because that term is defined in our 2023 Credit Agreement. Under the terms of our 2023 Credit Agreement, consolidated EBITDA is a measure that governs several critical aspects of our 2023 Credit Facility, including, among other things, financial covenants with which we must comply and financial ratios which we must maintain in order to borrow funds needed for the operation of our business and with respect to the interest rates that we pay on our 2023 Credit Facility. For example, our 2023 Credit Agreement contains a total net leverage ratio financial covenant. The total net leverage ratio, or the ratio of consolidated total debt (net of up to $50.0 million of unrestricted cash) to trailing-twelve-month consolidated EBITDA, affects both our ability to borrow from our Revolving Credit Facility and our applicable margin for the interest rate calculation. Under our 2023 Credit Agreement, our maximum total leverage ratio may not exceed 3.25 to 1.00. In addition, our 2023 Credit Agreement contains an interest coverage ratio financial covenant (calculated as set forth in the 2023 Credit Agreement), with a minimum permitted ratio of 3.00 to 1.00.
Therefore, we believe that it is important to disclose consolidated EBITDA to our investors to understand our compliance with these, and certain other, terms of our 2023 Credit Agreement. While many in the financial community and we consider consolidated EBITDA to be important, it should be considered in addition to, but not as a substitute for or superior to, other measures of financial performance and liquidity prepared in accordance with accounting principles generally accepted in the United States of America, such as operating income (loss), net income (loss) and cash flows from operating activities. Consolidated EBITDA has certain limitations because it excludes and includes several important financial line items as noted above. Therefore, we consider both non-GAAP and GAAP measures when evaluating our business. Consolidated EBITDA is also used to make executive compensation decisions.
We calculate Consolidated EBITDA as 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 operating gain (loss), 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 the Federal Communications Commission, or FCC, spectrum incentive auction less related expenses, expenses associated with investments, change in fair value of contingent consideration, non-recurring cash severance and restructuring charge, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings.
Free Cash Flow
We use the term free cash flow as a measure of our liquidity and we believe that it is a useful indicator for potential investors of our ability to implement growth strategies and service our debt. Free cash flow is a non-GAAP measure and should be considered in addition to, but not as a substitute for, information contained in our condensed consolidated statement of cash flows as a measure of liquidity.
We calculate free cash flow as cash flow from operating activities less capital expenditures.
Balance Sheet and Related Metrics
Cash and marketable securities as of September 30, 2024 totaled $93.1 million. Total debt as defined in the Company’s credit agreement was $187.8 million. Net of $50 million of cash and marketable securities, total leverage as defined in the Company’s credit agreement was 3.0 times as of September 30, 2024. Net of total cash and marketable securities, total leverage was 2.0 times.
Consolidated EBITDA, as defined in our 2023 Credit Agreement was $15.1 million and $30.1 million for the three- and nine-month periods ended September 30, 2024.
Unaudited Segment Results (In thousands)
|
Three-Month Period |
|
Nine-Month Period |
||||||||||||||||||||
|
Ended September 30, |
|
Ended September 30, |
||||||||||||||||||||
|
2024 |
|
2023 |
|
% Change |
|
2024 |
|
2023 |
|
% Change |
||||||||||||
Net Revenue |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Media |
$ |
59,802 |
|
$ |
48,746 |
|
|
23 |
% |
|
$ |
154,801 |
|
$ |
144,614 |
|
|
7 |
% |
||||
Advertising Technology & Services |
|
37,354 |
|
|
|
28,674 |
|
|
|
30 |
% |
|
|
103,185 |
|
|
|
74,173 |
|
|
|
39 |
% |
Total |
$ |
97,156 |
|
|
$ |
77,420 |
|
|
|
25 |
% |
|
$ |
257,986 |
|
|
$ |
218,787 |
|
|
|
18 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of Revenue (1) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Media |
$ |
4,881 |
|
|
$ |
2,840 |
|
|
|
72 |
% |
|
$ |
11,888 |
|
|
$ |
7,661 |
|
|
|
55 |
% |
Advertising Technology & Services |
|
21,920 |
|
|
|
18,553 |
|
|
|
18 |
% |
|
|
61,995 |
|
|
|
50,249 |
|
|
|
23 |
% |
Total |
$ |
26,801 |
|
|
$ |
21,393 |
|
|
|
25 |
% |
|
$ |
73,883 |
|
|
$ |
57,910 |
|
|
|
28 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating Expenses (1) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Media |
|
40,053 |
|
|
|
32,787 |
|
|
|
22 |
% |
|
|
113,005 |
|
|
|
99,043 |
|
|
|
14 |
% |
Advertising Technology & Services |
|
12,676 |
|
|
|
7,861 |
|
|
|
61 |
% |
|
|
31,978 |
|
|
|
22,480 |
|
|
|
42 |
% |
Total |
$ |
52,729 |
|
|
$ |
40,648 |
|
|
|
30 |
% |
|
$ |
144,983 |
|
|
$ |
121,523 |
|
|
|
19 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Corporate Expenses (1) |
$ |
6,930 |
|
|
$ |
13,292 |
|
|
|
(48 |
)% |
|
$ |
29,989 |
|
|
$ |
35,836 |
|
|
|
(16 |
)% |
(1) |
Cost of revenue, operating expenses, and corporate expenses are defined on page 2. |
Notice of Conference Call
Entravision will hold a conference call to discuss its third quarter 2024 results on Thursday, November 7, 2024 at 5:00 p.m. Eastern Time. To access the conference call, please dial 1-800-717-1738 or 1-646-307-1865 ten minutes prior to the start time. The call will also be available via live webcast on the investor relations portion of the company's website located at www.entravision.com.
About Entravision Communications Corporation
Entravision is a media and advertising technology company. In the U.S., we maintain a diversified portfolio of television and radio stations and digital advertising services that target Latino audiences. Our advertising technology business consists of Smadex, our programmatic ad purchasing platform, and Adwake, our mobile growth solutions business. Entravision remains the largest affiliate group of the Univision and UniMás television networks. Shares of Entravision Class A Common Stock trade on the NYSE under ticker: EVC. Learn more about our offerings at entravision.com or connect with us on LinkedIn and Facebook.
Forward-Looking Statements
This press release contains certain forward-looking statements. These forward-looking statements, which are included in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, may involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this press release. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that actual results will not differ materially from these expectations, and the Company disclaims any duty to update any forward-looking statements made by the Company. From time to time, these risks, uncertainties and other factors are discussed in the Company’s filings with the Securities and Exchange Commission.
Entravision Communications Corporation |
||||||||||||||||
Consolidated Statements of Operations |
||||||||||||||||
(In thousands, except share and per share data) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
Three-Month Period |
|
Nine-Month Period |
||||||||||||
|
|
Ended September 30, |
|
Ended September 30, |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net revenue |
|
$ |
97,156 |
|
|
$ |
77,420 |
|
|
$ |
257,986 |
|
|
$ |
218,787 |
|
|
|
|
|
|
|
|
|
|
||||||||
Expenses: |
|
|
|
|
|
|
|
|
||||||||
Cost of revenue |
|
|
26,801 |
|
|
|
21,393 |
|
|
|
73,883 |
|
|
|
57,910 |
|
Direct operating expenses |
|
|
35,617 |
|
|
|
28,702 |
|
|
|
99,174 |
|
|
|
84,160 |
|
Selling, general and administrative expenses |
|
|
17,112 |
|
|
|
11,946 |
|
|
|
45,809 |
|
|
|
37,363 |
|
Corporate expenses |
|
|
6,930 |
|
|
|
13,292 |
|
|
|
29,989 |
|
|
|
35,836 |
|
Depreciation and amortization |
|
|
3,882 |
|
|
|
4,733 |
|
|
|
13,049 |
|
|
|
11,948 |
|
Change in fair value of contingent consideration |
|
|
(650 |
) |
|
|
(100 |
) |
|
|
(630 |
) |
|
|
621 |
|
Impairment charge |
|
|
— |
|
|
|
989 |
|
|
|
— |
|
|
|
989 |
|
Foreign currency (gain) loss |
|
|
(121 |
) |
|
|
269 |
|
|
|
120 |
|
|
|
1,274 |
|
|
|
|
89,571 |
|
|
|
81,224 |
|
|
|
261,394 |
|
|
|
230,101 |
|
Operating income (loss) |
|
|
7,585 |
|
|
|
(3,804 |
) |
|
|
(3,408 |
) |
|
|
(11,314 |
) |
Interest expense |
|
|
(4,087 |
) |
|
|
(4,346 |
) |
|
|
(12,648 |
) |
|
|
(12,464 |
) |
Interest income |
|
|
646 |
|
|
|
1,068 |
|
|
|
1,801 |
|
|
|
2,396 |
|
Dividend income |
|
|
— |
|
|
|
— |
|
|
|
10 |
|
|
|
32 |
|
Realized gain (loss) on marketable securities |
|
|
(1 |
) |
|
|
(33 |
) |
|
|
(110 |
) |
|
|
(94 |
) |
Gain (loss) on debt extinguishment |
|
|
— |
|
|
|
— |
|
|
|
(91 |
) |
|
|
(1,556 |
) |
Income (loss) before income taxes |
|
|
4,143 |
|
|
|
(7,115 |
) |
|
|
(14,446 |
) |
|
|
(23,000 |
) |
Income tax benefit (expense) |
|
|
(14,984 |
) |
|
|
1,012 |
|
|
|
(173 |
) |
|
|
3,055 |
|
Net income (loss) from continuing operations |
|
|
(10,841 |
) |
|
|
(6,103 |
) |
|
|
(14,619 |
) |
|
|
(19,945 |
) |
Net income (loss) from discontinued operations, net of tax |
|
|
(1,139 |
) |
|
|
8,822 |
|
|
|
(77,931 |
) |
|
|
22,716 |
|
Net income (loss) attributable to common stockholders |
|
$ |
(11,980 |
) |
|
$ |
2,719 |
|
|
$ |
(92,550 |
) |
|
$ |
2,771 |
|
|
|
|
|
|
|
|
|
|
||||||||
Basic and diluted earnings per share: |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share from continuing operations, basic and diluted |
|
$ |
(0.12 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.16 |
) |
|
$ |
(0.23 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share from discontinued operations, basic and diluted |
|
$ |
(0.01 |
) |
|
$ |
0.10 |
|
|
$ |
(0.87 |
) |
|
$ |
0.26 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share attributable to common stockholders, basic and diluted |
|
$ |
(0.13 |
) |
|
$ |
0.03 |
|
|
$ |
(1.03 |
) |
|
$ |
0.03 |
|
|
|
|
|
|
|
|
|
|
||||||||
Cash dividends declared per common share, basic and diluted |
|
$ |
0.05 |
|
|
$ |
0.05 |
|
|
$ |
0.15 |
|
|
$ |
0.15 |
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding, basic and diluted |
|
|
89,987,110 |
|
|
|
87,995,567 |
|
|
|
89,776,075 |
|
|
|
87,803,770 |
|
Entravision Communications Corporation |
||||||||
Consolidated Balance Sheets |
||||||||
(In thousands; unaudited) |
||||||||
|
|
September 30, |
|
December 31, |
||||
|
|
2024 |
|
2023 |
||||
ASSETS |
|
|
|
|
||||
Current assets |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
90,258 |
|
|
$ |
67,398 |
|
Marketable securities |
|
|
2,826 |
|
|
|
13,172 |
|
Restricted cash |
|
|
783 |
|
|
|
770 |
|
Trade receivables, net of allowance for doubtful accounts |
|
|
69,758 |
|
|
|
70,082 |
|
Assets held for sale |
|
|
- |
|
|
|
301 |
|
Prepaid expenses and other current assets |
|
|
31,763 |
|
|
|
16,863 |
|
Current assets of discontinued operations |
|
|
- |
|
|
|
217,269 |
|
Total current assets |
|
|
195,388 |
|
|
|
385,855 |
|
Property and equipment, net |
|
|
61,297 |
|
|
|
66,932 |
|
Intangible assets subject to amortization, net |
|
|
4,890 |
|
|
|
7,100 |
|
Intangible assets not subject to amortization |
|
|
195,174 |
|
|
|
195,174 |
|
Goodwill |
|
|
50,673 |
|
|
|
50,674 |
|
Deferred income taxes |
|
|
87 |
|
|
|
265 |
|
Operating leases right of use asset |
|
|
41,742 |
|
|
|
42,868 |
|
Other assets |
|
|
8,007 |
|
|
|
21,223 |
|
Noncurrent assets of discontinued operations |
|
|
- |
|
|
|
95,855 |
|
Total assets |
|
$ |
557,258 |
|
|
$ |
865,946 |
|
|
|
|
|
|
||||
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
||||
Current liabilities |
|
|
|
|
||||
Current maturities of long-term debt |
|
$ |
- |
|
|
$ |
8,750 |
|
Accounts payable and accrued expenses |
|
|
64,528 |
|
|
|
47,776 |
|
Operating lease liabilities |
|
|
7,740 |
|
|
|
6,748 |
|
Current liabilities of discontinued operations |
|
|
- |
|
|
|
208,779 |
|
Total current liabilities |
|
|
72,268 |
|
|
|
272,053 |
|
Long-term debt, less current maturities, net of unamortized debt issuance costs |
|
|
186,902 |
|
|
|
197,884 |
|
Long-term operating lease liabilities |
|
|
43,171 |
|
|
|
45,178 |
|
Other long-term liabilities |
|
|
4,443 |
|
|
|
4,624 |
|
Deferred income taxes |
|
|
43,111 |
|
|
|
46,849 |
|
Noncurrent liabilities of discontinued operations |
|
|
- |
|
|
|
33,072 |
|
Total liabilities |
|
|
349,895 |
|
|
|
599,660 |
|
|
|
|
|
|
||||
Redeemable noncontrolling interest - discontinued operations |
|
|
- |
|
|
|
43,758 |
|
Stockholders' equity |
|
|
|
|
||||
Class A common stock |
|
|
8 |
|
|
|
8 |
|
Class U common stock |
|
|
1 |
|
|
|
1 |
|
Additional paid-in capital |
|
|
820,491 |
|
|
|
743,246 |
|
Accumulated deficit |
|
|
(612,362 |
) |
|
|
(519,812 |
) |
Accumulated other comprehensive income (loss) |
|
|
(775 |
) |
|
|
(915 |
) |
Total stockholders' equity |
|
|
207,363 |
|
|
|
222,528 |
|
Total liabilities, redeemable noncontrolling interest and equity |
|
$ |
557,258 |
|
|
$ |
865,946 |
|
Entravision Communications Corporation |
||||||||||||||||
Consolidated Statements of Cash Flows |
||||||||||||||||
(In thousands; unaudited) |
||||||||||||||||
|
|
Three-Month Period |
|
Nine-Month Period |
||||||||||||
|
|
Ended September 30, |
|
Ended September 30, |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
|
$ |
(11,980 |
) |
|
$ |
2,719 |
|
|
$ |
(92,550 |
) |
|
$ |
2,771 |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
|
3,882 |
|
|
|
7,356 |
|
|
|
17,007 |
|
|
|
20,336 |
|
Impairment charge |
|
|
— |
|
|
|
989 |
|
|
|
49,438 |
|
|
|
989 |
|
Deferred income taxes |
|
|
(3,500 |
) |
|
|
(40 |
) |
|
|
(3,286 |
) |
|
|
(169 |
) |
Non-cash interest |
|
|
63 |
|
|
|
85 |
|
|
|
223 |
|
|
|
264 |
|
Amortization of syndication contracts |
|
|
112 |
|
|
|
118 |
|
|
|
339 |
|
|
|
358 |
|
Payments on syndication contracts |
|
|
(108 |
) |
|
|
(125 |
) |
|
|
(337 |
) |
|
|
(366 |
) |
Non-cash stock-based compensation |
|
|
3,688 |
|
|
|
7,032 |
|
|
|
12,422 |
|
|
|
17,053 |
|
(Gain) loss on marketable securities |
|
|
1 |
|
|
|
33 |
|
|
|
110 |
|
|
|
94 |
|
(Gain) loss on disposal of property and equipment |
|
|
23 |
|
|
|
(29 |
) |
|
|
206 |
|
|
|
(11 |
) |
Loss (gain) on the sale of businesses |
|
|
125 |
|
|
|
— |
|
|
|
45,139 |
|
|
|
— |
|
(Gain) loss on debt extinguishment |
|
|
— |
|
|
|
— |
|
|
|
91 |
|
|
|
1,556 |
|
Change in fair value of contingent consideration |
|
|
(650 |
) |
|
|
(5,997 |
) |
|
|
(13,198 |
) |
|
|
(8,939 |
) |
Net income (loss) attributable to redeemable noncontrolling interest - discontinued operations |
|
|
— |
|
|
|
13 |
|
|
|
(2,779 |
) |
|
|
1 |
|
Net income (loss) attributable to noncontrolling interest - discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(342 |
) |
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
||||||||
(Increase) decrease in accounts receivable |
|
|
1,025 |
|
|
|
(1,219 |
) |
|
|
10,611 |
|
|
|
16,261 |
|
(Increase) decrease in prepaid expenses and other current assets, operating leases right of use asset and other assets |
|
|
17,662 |
|
|
|
(3,902 |
) |
|
|
(1,928 |
) |
|
|
(7,199 |
) |
Increase (decrease) in accounts payable, accrued expenses and other liabilities |
|
|
508 |
|
|
|
14,993 |
|
|
|
40,414 |
|
|
|
26,460 |
|
Net cash provided by operating activities |
|
|
10,851 |
|
|
|
22,026 |
|
|
|
61,922 |
|
|
|
69,117 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
||||||||
Proceeds from sale of businesses, net of cash divested |
|
|
— |
|
|
|
33 |
|
|
|
(42,967 |
) |
|
|
83 |
|
Purchases of property and equipment |
|
|
(1,552 |
) |
|
|
(5,023 |
) |
|
|
(6,289 |
) |
|
|
(19,881 |
) |
Purchase of a business, net of cash acquired |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6,930 |
) |
Purchases of marketable securities |
|
|
— |
|
|
|
(1,183 |
) |
|
|
— |
|
|
|
(11,355 |
) |
Proceeds from sale of marketable securities |
|
|
362 |
|
|
|
10,000 |
|
|
|
10,381 |
|
|
|
38,093 |
|
Proceeds from loan receivable |
|
|
— |
|
|
|
— |
|
|
|
10,748 |
|
|
|
— |
|
Purchases of investments |
|
|
— |
|
|
|
(100 |
) |
|
|
— |
|
|
|
(300 |
) |
Issuance of loan receivable |
|
|
— |
|
|
|
(5,550 |
) |
|
|
— |
|
|
|
(13,636 |
) |
Net cash provided by (used in) investing activities |
|
|
(1,190 |
) |
|
|
(1,823 |
) |
|
|
(28,127 |
) |
|
|
(13,926 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
||||||||
Proceeds from stock option exercises |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
554 |
|
Tax payments related to shares withheld for share-based compensation plans |
|
|
— |
|
|
|
(63 |
) |
|
|
(27 |
) |
|
|
(158 |
) |
Payments on debt |
|
|
— |
|
|
|
(1,250 |
) |
|
|
(20,275 |
) |
|
|
(214,495 |
) |
Dividends paid |
|
|
(4,499 |
) |
|
|
(4,400 |
) |
|
|
(13,471 |
) |
|
|
(13,182 |
) |
Distributions to noncontrolling interest |
|
|
— |
|
|
|
— |
|
|
|
(1,078 |
) |
|
|
(3,380 |
) |
Payment of contingent consideration |
|
|
— |
|
|
|
(3,403 |
) |
|
|
(14,300 |
) |
|
|
(35,113 |
) |
Principal payments under finance lease obligation |
|
|
(36 |
) |
|
|
(37 |
) |
|
|
(110 |
) |
|
|
(113 |
) |
Proceeds from borrowings on debt |
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
212,420 |
|
Payments for debt issuance costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,777 |
) |
Net cash provided by (used in) financing activities |
|
|
(4,535 |
) |
|
|
(9,152 |
) |
|
|
(49,261 |
) |
|
|
(55,244 |
) |
Effect of exchange rates on cash, cash equivalents and restricted cash |
|
|
— |
|
|
|
(3 |
) |
|
|
(2 |
) |
|
|
(2 |
) |
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
|
5,126 |
|
|
|
11,048 |
|
|
|
(15,468 |
) |
|
|
(55 |
) |
Cash, cash equivalents and restricted cash: |
|
|
|
|
|
|
|
|
||||||||
Beginning |
|
|
85,915 |
|
|
|
100,341 |
|
|
|
106,509 |
|
|
|
111,444 |
|
Ending |
|
$ |
91,041 |
|
|
$ |
111,389 |
|
|
$ |
91,041 |
|
|
$ |
111,389 |
|
Entravision Communications Corporation |
||||||||||||||||
Reconciliation of Consolidated EBITDA to Net income (loss) attributable to common stockholders |
||||||||||||||||
(In thousands; unaudited) |
||||||||||||||||
The most directly comparable GAAP financial measure is net income (loss) attributable to common stockholders. A reconciliation of this non-GAAP measure to net income (loss) attributable to common stockholders for each of the periods presented is as follows: |
||||||||||||||||
|
|
Three-Month Period |
|
Nine-Month Period |
||||||||||||
|
|
Ended September 30, |
|
Ended September 30, |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net income (loss) attributable to common stockholders |
|
$ |
(11,980 |
) |
|
$ |
2,719 |
|
|
$ |
(92,550 |
) |
|
$ |
2,771 |
|
Net income (loss) attributable to redeemable noncontrolling interest - discontinued operations |
|
|
— |
|
|
|
13 |
|
|
|
(2,779 |
) |
|
|
1 |
|
Net income (loss) attributable to noncontrolling interest - discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(342 |
) |
Interest expense |
|
|
4,087 |
|
|
|
4,346 |
|
|
|
12,648 |
|
|
|
12,464 |
|
Interest expense - discontinued operations |
|
|
— |
|
|
|
108 |
|
|
|
219 |
|
|
|
324 |
|
Interest income |
|
|
(646 |
) |
|
|
(1,068 |
) |
|
|
(1,801 |
) |
|
|
(2,396 |
) |
Interest income - discontinued operations |
|
|
— |
|
|
|
(490 |
) |
|
|
(731 |
) |
|
|
(1,059 |
) |
Dividend income |
|
|
— |
|
|
|
— |
|
|
|
(10 |
) |
|
|
(32 |
) |
Realized gain (loss) on marketable securities |
|
|
1 |
|
|
|
33 |
|
|
|
110 |
|
|
|
94 |
|
(Gain) loss on debt extinguishment |
|
|
— |
|
|
|
— |
|
|
|
91 |
|
|
|
1,556 |
|
Income tax expense |
|
|
14,984 |
|
|
|
(1,012 |
) |
|
|
173 |
|
|
|
(3,055 |
) |
Income tax expense - discontinued operations |
|
|
(125 |
) |
|
|
482 |
|
|
|
(770 |
) |
|
|
2,017 |
|
Amortization of syndication contracts |
|
|
112 |
|
|
|
118 |
|
|
|
339 |
|
|
|
358 |
|
Payments on syndication contracts |
|
|
(108 |
) |
|
|
(125 |
) |
|
|
(337 |
) |
|
|
(366 |
) |
Non-cash stock-based compensation |
|
|
3,688 |
|
|
|
7,032 |
|
|
|
12,422 |
|
|
|
17,053 |
|
Depreciation and amortization |
|
|
3,882 |
|
|
|
4,733 |
|
|
|
13,049 |
|
|
|
11,948 |
|
Depreciation and amortization - discontinued operations |
|
|
— |
|
|
|
2,623 |
|
|
|
3,958 |
|
|
|
8,388 |
|
Change in fair value of contingent consideration |
|
|
(650 |
) |
|
|
(100 |
) |
|
|
(630 |
) |
|
|
621 |
|
Change in fair value of contingent consideration - discontinued operations |
|
|
— |
|
|
|
(5,897 |
) |
|
|
(12,568 |
) |
|
|
(9,560 |
) |
Impairment charge |
|
|
— |
|
|
|
989 |
|
|
|
— |
|
|
|
989 |
|
Impairment charge - discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
49,438 |
|
|
|
— |
|
Non-recurring cash severance and restructuring charge |
|
|
1,722 |
|
|
|
— |
|
|
|
4,849 |
|
|
|
612 |
|
Other operating (gain) loss - discontinued operations |
|
|
125 |
|
|
|
— |
|
|
|
45,139 |
|
|
|
— |
|
EBITDA attributable to redeemable noncontrolling interest - discontinued operations |
|
|
— |
|
|
|
(319 |
) |
|
|
(167 |
) |
|
|
(736 |
) |
EBITDA attributable to noncontrolling interest - discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(230 |
) |
Consolidated EBITDA (1) |
|
$ |
15,092 |
|
|
$ |
14,185 |
|
|
$ |
30,092 |
|
|
$ |
41,420 |
|
(1) |
Consolidated EBITDA is defined on page 2. |
Entravision Communications Corporation |
||||||||||||||||
Reconciliation of Free Cash Flow to Cash Flows From Operating Activities |
||||||||||||||||
(In thousands; unaudited) |
||||||||||||||||
The most directly comparable GAAP financial measure is cash flows from operating activities. A reconciliation of this non-GAAP measure to cash flows from operating activities for each of the periods presented is as follows: |
||||||||||||||||
|
|
Three-Month Period |
|
Nine-Month Period |
||||||||||||
|
|
Ended September 30, |
|
Ended September 30, |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Cash flows from operating activities |
|
$ |
10,851 |
|
|
$ |
22,026 |
|
|
$ |
61,922 |
|
|
$ |
69,117 |
|
Cash paid for capital expenditures (2) |
|
|
(1,552 |
) |
|
|
(5,023 |
) |
|
|
(6,289 |
) |
|
|
(19,881 |
) |
Free cash flow (1) |
|
$ |
9,299 |
|
|
$ |
17,003 |
|
|
$ |
55,633 |
|
|
$ |
49,236 |
|
(1) |
Free cash flow is defined on page 2. |
|
(2) |
Capital expenditures are not part of the consolidated statement of operations. |
