Press Release

Entravision Communications Corporation Reports Third Quarter 2021 Results

Company Release - 11/4/2021 4:10 PM ET

SANTA MONICA, Calif.--(BUSINESS WIRE)-- Entravision Communications Corporation (NYSE: EVC), a leading global media, marketing and technology company, today announced financial results for the three- and nine-month periods ended September 30, 2021.

Third Quarter 2021 Highlights

  • Net revenue up 216% over the prior-year period
  • Net income attributable to common stockholders up 35% over the prior-year period
  • Consolidated Adjusted EBITDA up 42% over the prior-year period
  • Operating cash flow up 50% over the prior-year period
  • Free cash flow up 112% over the prior-year period
  • Acquisition of Cisneros Interactive's remaining 49% (now wholly-owned)
  • Acquisition of MediaDonuts, marking entry into Southeast Asia
  • Quarterly cash dividend of $0.025 per share
  • Acquisition of 365 Digital, marking entry into Africa

“Entravision reported very strong results for the third quarter, with revenue improving 216% and adjusted EBITDA increasing by 42% over the prior-year period,” said Walter F. Ulloa, Chairman and Chief Executive Officer. “Thanks to the exceptional work of our entire team, we saw growth in core revenue across each of our business segments, with digital, in particular, making a significant contribution to our overall performance and now comprising 73% of total revenue.”

Mr. Ulloa continued, “During the quarter, we continued to strengthen our digital segment, both organically and through acquisitions. At the end of August, we acquired the remaining 49 percent of Cisneros Interactive, which is now wholly-owned by us, expanding our reach in Latin America. Prior to that, in July, we acquired MediaDonuts, marking our entry into Southeast Asia. Finally, just today, we announced the acquisition of 365 Digital, a digital marketing solutions agency in South Africa and marking our entry into Africa. Our digital operations now have a presence on five continents. These acquisitions will serve us favorably as we expand our client base and geographic footprint. We are evolving our business to meet the demands of our clients while generating value for all of our stakeholders as we build a company that is truly a digital media powerhouse."

Acquisition of 365 Digital

The Company announced today in a separate press release that, on November 1, 2021, it acquired 100% of the issued and outstanding shares of stock of 365 Digital Media (Pty) Ltd, a digital marketing solutions agency headquartered in South Africa, marking the Company's entry into Africa, and bringing the Company's digital presence to five continents. The transaction, funded from the Company’s cash on hand, includes a purchase price of approximately $1.9 million in cash, and earn-out payments based upon the achievement of certain EBITDA targets in calendar years 2022, 2023 and 2024, calculated as a pre-determined multiple of EBITDA for each of those years.

Quarterly Cash Dividend

The Company also announced today that its Board of Directors approved a quarterly cash dividend to shareholders of $0.025 per share on the Company's Class A, Class B and Class U common stock, in an aggregate amount of approximately $2.1 million. The quarterly dividend will be payable on December 31, 2021 to shareholders of record as of the close of business on December 16, 2021, and the common stock will trade ex-dividend on December 15, 2021. 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. 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 10.

Unaudited Financial Highlights

 

 

Three-Month Period

 

 

Nine-Month Period

 

 

Ended September 30,

 

 

Ended September 30,

 

 

2021

 

2020

 

% Change

 

 

2021

 

2020

 

% Change

 

Net revenue

$

199,008

 

 

$

62,978

 

 

 

216

%

 

$

526,298

 

 

$

172,343

 

 

 

205

%

Cost of revenue - digital (1)

 

124,332

 

 

 

7,808

 

 

*

 

 

 

318,118

 

 

 

21,602

 

 

*

 

Operating expenses (2)

 

43,113

 

 

 

34,061

 

 

 

27

%

 

 

124,969

 

 

 

107,368

 

 

 

16

%

Corporate expenses (3)

 

7,253

 

 

 

6,287

 

 

 

15

%

 

 

21,756

 

 

 

18,511

 

 

 

18

%

Foreign currency (gain) loss

 

177

 

 

 

(680

)

 

*

 

 

 

454

 

 

 

673

 

 

 

(33

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated adjusted EBITDA (4)

 

23,195

 

 

 

16,371

 

 

 

42

%

 

 

55,177

 

 

 

27,773

 

 

 

99

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Free cash flow (5)

$

22,382

 

 

$

10,567

 

 

 

112

%

 

$

47,831

 

 

$

14,388

 

 

 

232

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

13,884

 

 

$

9,016

 

 

 

54

%

 

$

31,362

 

 

$

(24,238

)

 

*

 

Net (income) loss attributable to redeemable noncontrolling interest

$

(1,753

)

 

$

-

 

 

*

 

 

$

(5,938

)

 

$

-

 

 

*

 

Net income (loss) attributable to common stockholders

$

12,131

 

 

$

9,016

 

 

 

35

%

 

$

25,424

 

 

$

(24,238

)

 

*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share attributable to common stockholders, basic

$

0.14

 

 

$

0.11

 

 

 

27

%

 

$

0.30

 

 

$

(0.29

)

 

*

 

Net income (loss) per share attributable to common stockholders, diluted

$

0.14

 

 

$

0.11

 

 

 

27

%

 

$

0.29

 

 

$

(0.29

)

 

*

 

Weighted average common shares outstanding, basic

 

85,390,333

 

 

 

84,185,728

 

 

 

 

 

 

85,207,992

 

 

 

84,208,924

 

 

 

 

Weighted average common shares outstanding, diluted

 

88,315,732

 

 

 

84,863,020

 

 

 

 

 

 

87,694,395

 

 

 

84,208,924

 

 

 

 

(1)

Consists primarily 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 includes direct operating and selling, general and administrative expenses. Included in operating expenses are $0.3 million and $0.1 million of non-cash stock-based compensation for the three-month periods ended September 30, 2021 and 2020, respectively, and $1.0 million and $0.4 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2021 and 2020, respectively.

(3)

Corporate expenses include $0.8 million and $0.7 million of non-cash stock-based compensation for the three-month periods ended September 30, 2021 and 2020, respectively, and $2.3 million and $2.0 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2021 and 2020, respectively.

(4)

Consolidated adjusted EBITDA 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 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, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings. We use the term consolidated adjusted EBITDA because that measure is defined in the agreement governing our current credit facility (“the 2017 Credit Facility”) 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), 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, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings.

(5)

Free cash flow is defined as consolidated adjusted EBITDA less cash paid for income taxes, net interest expense, capital expenditures and non-recurring cash expenses plus dividend income, and other operating gain (loss). Net interest expense is defined as interest expense, less non-cash interest expense relating to amortization of debt finance costs, and less interest income.

Unaudited Financial Results
 

 

Three-Month Period

 

 

Ended September 30,

 

 

2021

 

2020

 

% Change

 

Net revenue

$

199,008

 

 

$

62,978

 

 

 

216

%

Cost of revenue - digital (1)

 

124,332

 

 

 

7,808

 

 

*

 

Operating expenses (1)

 

43,113

 

 

 

34,061

 

 

 

27

%

Corporate expenses (1)

 

7,253

 

 

 

6,287

 

 

 

15

%

Depreciation and amortization

 

5,901

 

 

 

3,934

 

 

 

50

%

Impairment charge

 

166

 

 

 

-

 

 

*

 

Foreign currency (gain) loss

 

177

 

 

 

(680

)

 

*

 

Other operating (gain) loss

 

(2,431

)

 

 

(2,683

)

 

 

(9

)%

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

20,497

 

 

 

14,251

 

 

 

44

%

Interest expense, net

 

(1,702

)

 

 

(1,502

)

 

 

13

%

Dividend income

 

207

 

 

 

3

 

 

*

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

19,002

 

 

 

12,752

 

 

 

49

%

Income tax benefit (expense)

 

(5,118

)

 

 

(3,736

)

 

 

37

%

 

 

 

 

 

 

 

 

 

Net income (loss)

 

13,884

 

 

 

9,016

 

 

 

54

%

Net (income) loss attributable to redeemable noncontrolling interest

 

(1,753

)

 

 

-

 

 

*

 

Net income (loss) attributable to common stockholders

$

12,131

 

 

$

9,016

 

 

 

35

%

(1)

Cost of revenue, operating expenses and corporate expenses are defined on page 2.

Net revenue in the third quarter of 2021 totaled $199.0 million, up 216% from $63.0 million in the prior-year period. Of the overall increase, approximately $132.4 million was attributable to our digital segment and was primarily due to advertising revenue resulting from our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which became fully-owned during the third quarter of 2021, and advertising revenue resulting from our acquisition of MediaDonuts during the third quarter of 2021. In addition, of the overall increase, approximately $4.9 million was attributable to our radio segment, primarily due to increases in local and national advertising revenue, partially offset by a decrease in political revenue. The overall increase was partially offset by a decrease of approximately $1.3 million that was attributable to our television segment primarily due to decreases in political revenue and revenue from spectrum usage rights, partially offset by increases in local and national advertising revenue.

Cost of revenue in the third quarter of 2021 totaled $124.3 million compared to $7.8 million in the prior-year period. The increase was primarily due to increased costs of revenue following our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which became wholly-owned during the third quarter of 2021, and our acquisition of MediaDonuts during the third quarter of 2021.

Operating expenses in the third quarter of 2021 totaled $43.1 million, up 27% from $34.1 million in the prior-year period. The increase was primarily due to our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which became fully-owned during the third quarter of 2021, and our acquisition of MediaDonuts during the third quarter of 2021, and due to an increase in expenses associated with the increase in advertising revenue, partially offset by a decrease in salary expense associated with furloughs and layoffs that occurred in 2020 because of the COVID-19 pandemic.

Corporate expenses in the third quarter of 2021 totaled $7.3 million, up 15% from $6.3 million in the prior-year period. The increase was primarily due to an increase in salaries and non-cash stock-based compensation expense.

 

Nine-Month Period

 

 

Ended September 30,

 

 

2021

 

 

2020

 

 

% Change

 

Net revenue

$

526,298

 

 

$

172,343

 

 

 

205

%

Cost of revenue - digital (1)

 

318,118

 

 

 

21,602

 

 

*

 

Operating expenses (1)

 

124,969

 

 

 

107,368

 

 

 

16

%

Corporate expenses (1)

 

21,756

 

 

 

18,511

 

 

 

18

%

Depreciation and amortization

 

16,159

 

 

 

12,319

 

 

 

31

%

Impairment charge

 

1,604

 

 

 

39,835

 

 

 

(96

)%

Foreign currency (gain) loss

 

454

 

 

 

673

 

 

 

(33

)%

Other operating (gain) loss

 

(4,867

)

 

 

(5,549

)

 

 

(12

)%

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

48,105

 

 

 

(22,416

)

 

*

 

Interest expense, net

 

(5,052

)

 

 

(5,043

)

 

 

0

%

Dividend income

 

211

 

 

 

26

 

 

 

712

%

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

43,264

 

 

 

(27,433

)

 

*

 

Income tax benefit (expense)

 

(11,902

)

 

 

3,195

 

 

*

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

31,362

 

 

 

(24,238

)

 

*

 

Net (income) loss attributable to redeemable noncontrolling interest

 

(5,938

)

 

 

-

 

 

*

 

Net income (loss) attributable to common stockholders

$

25,424

 

 

$

(24,238

)

 

*

 

(1)

Cost of revenue, operating expenses and corporate expenses are defined on page 2.

Net revenue for the nine-month period of 2021 totaled $526.3 million, up 205% from $172.3 million in the prior-year period. Of the overall increase, approximately $339.4 million was attributable to our digital segment and was primarily due to advertising revenue resulting from our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which became fully-owned during the third quarter of 2021, and advertising revenue resulting from our acquisition of MediaDonuts during the third quarter of 2021. In addition, of the overall increase, approximately $2.7 million was attributable to our television segment, primarily due to increases in local and national advertising revenue, and revenue from spectrum usage rights, partially offset by a decrease in political revenue. Additionally, of the overall increase, approximately $11.8 million was attributable to our radio segment primarily due to increases in local and national advertising revenue, partially offset by a decrease in political revenue.

Cost of revenue for the nine-month period of 2021 totaled $318.1 million compared to $21.6 million in the prior-year period. The increase was primarily due to increased costs of revenue following our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which became wholly-owned during the third quarter of 2021, and our acquisition of MediaDonuts during the third quarter of 2021.

Operating expenses for the nine-month period of 2021 totaled $125.0 million, up 16% from $107.4 million in the prior-year period. The increase was primarily due to our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which became fully-owned during the third quarter of 2021, and our acquisition of MediaDonuts during the third quarter of 2021, and due to an increase in expenses associated with the increase in advertising revenue, partially offset by decreases in bad debt and salary expense associated with furloughs and layoffs that occurred in 2020 because of the COVID-19 pandemic.

Corporate expenses for the nine-month period of 2021 totaled $21.8 million, up 18% from $18.5 million in the prior-year period. The increase was primarily due to an increase in salaries and audit fees.

Balance Sheet and Related Metrics

Cash and marketable securities as of September 30, 2021 totaled approximately $182.9 million. Total debt was $213.0 million. Net of $75 million of cash and marketable securities, total leverage as defined in the Company’s credit agreement was 1.6 times as of September 30, 2021. Net of total accessible cash and marketable securities, total leverage was 0.3 times.

Unaudited Segment Results

 

 

Three-Month Period

 

 

Nine-Month Period

 

 

Ended September 30,

 

 

Ended September 30,

 

 

2021

 

 

2020

 

 

% Change

 

 

2021

 

 

2020

 

 

% Change

 

Net Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Digital

$

146,121

 

 

$

13,655

 

 

 

970

%

 

$

377,826

 

 

$

38,359

 

 

 

885

%

Television

 

36,450

 

 

 

37,786

 

 

 

(4

)%

 

 

106,598

 

 

 

103,940

 

 

 

3

%

Radio

 

16,437

 

 

 

11,537

 

 

 

42

%

 

 

41,874

 

 

 

30,044

 

 

 

39

%

Total

$

199,008

 

 

$

62,978

 

 

 

216

%

 

$

526,298

 

 

$

172,343

 

 

 

205

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Revenue - digital (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Digital

$

124,332

 

 

$

7,808

 

 

*

 

 

$

318,118

 

 

$

21,602

 

 

*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Digital

 

13,187

 

 

 

5,383

 

 

 

145

%

 

 

36,064

 

 

 

18,403

 

 

 

96

%

Television

 

20,148

 

 

 

18,978

 

 

 

6

%

 

 

59,548

 

 

 

58,471

 

 

 

2

%

Radio

 

9,778

 

 

 

9,700

 

 

 

1

%

 

 

29,357

 

 

 

30,494

 

 

 

(4

)%

Total

$

43,113

 

 

$

34,061

 

 

 

27

%

 

$

124,969

 

 

$

107,368

 

 

 

16

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Expenses (1)

$

7,253

 

 

$

6,287

 

 

 

15

%

 

$

21,756

 

 

$

18,511

 

 

 

18

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated adjusted EBITDA (1)

$

23,195

 

 

$

16,371

 

 

 

42

%

 

$

55,177

 

 

$

27,773

 

 

 

99

%

(1)

Cost of revenue, operating expenses, corporate expenses, and consolidated adjusted EBITDA are defined on page 2.

Notice of Conference Call

Entravision Communications Corporation will hold a conference call to discuss its third quarter 2021 results on Thursday, November 4, 2021 at 5 p.m. Eastern Time. To access the conference call, please dial (877) 407-9716 (U.S.) or (201) 493-6779 (Int’l) ten minutes prior to the start time and reference Conference ID number 13723009. 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 diversified global media, marketing and technology company serving clients throughout the United States and in fast growing population centers in more than 30 countries across Latin America, Europe, Asia and Africa. Our dynamic portfolio of services includes digital, television and radio offerings. Digital, our largest revenue segment, is comprised of five core businesses: Entravision Digital, Smadex, Cisneros Interactive, MediaDonuts, and 365 Digital. Entravision Digital provides branding and performance digital solutions to clients and small- and mid-size businesses throughout the world, including the U.S., Latin America and Europe. Smadex provides cutting-edge mobile programmatic solutions and demand-side platforms which enable advertisers to effectively execute performance campaigns using machine-learned bidding algorithms. Cisneros Interactive provides unique digital marketing solutions representing major global publishers and ad-tech platforms in Latin America, while also managing the leading digital audio network and solutions player Audio.Ad. MediaDonuts provides digital marketing performance and branding services in the Southeast Asia region and maintains unique commercial partnerships with some of the world’s leading digital publishers and social media platforms. 365 Digital is a digital advertising solutions provider that offers exclusive sales representations with major global platforms in South Africa. Beyond digital, Entravision has 53 television stations and is the largest affiliate group of the Univision and UniMás television networks. Entravision also manages 46 primarily Spanish-language radio stations that feature nationally recognized, Emmy award-winning talent. Shares of Entravision Class A Common Stock trade on the NYSE under ticker: EVC. Learn more about all of our innovative media, marketing and technology 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.

(Financial Table Follows)

Entravision Communications Corporation
Consolidated Balance Sheets
(In thousands; unaudited)

 

 

 

September 30,

 

 

December 31,

 

 

 

2021

 

 

2020

 

ASSETS

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

182,891

 

 

$

119,162

 

Marketable securities

 

 

-

 

 

 

27,988

 

Restricted cash

 

 

749

 

 

 

749

 

Trade receivables, net of allowance for doubtful accounts

 

 

168,165

 

 

 

142,004

 

Assets held for sale

 

 

2,907

 

 

 

2,141

 

Prepaid expenses and other current assets

 

 

24,803

 

 

 

18,021

 

Total current assets

 

 

379,515

 

 

 

310,065

 

Property and equipment, net

 

 

64,600

 

 

 

72,004

 

Intangible assets subject to amortization, net

 

 

65,880

 

 

 

49,412

 

Intangible assets not subject to amortization

 

 

209,153

 

 

 

216,653

 

Goodwill

 

 

68,728

 

 

 

58,043

 

Operating leases right of use asset

 

 

32,053

 

 

 

33,525

 

Other assets

 

 

8,474

 

 

 

7,643

 

Total assets

 

$

828,403

 

 

$

747,345

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Current maturities of long-term debt

 

$

4,694

 

 

$

3,000

 

Accounts payable and accrued expenses

 

 

179,912

 

 

 

126,849

 

Operating lease liabilities

 

 

7,353

 

 

 

7,290

 

Total current liabilities

 

 

191,959

 

 

 

137,139

 

Long-term debt, less current maturities, net of unamortized debt issuance costs

 

 

208,014

 

 

 

210,454

 

Long-term operating lease liabilities

 

 

29,851

 

 

 

31,775

 

Other long-term liabilities

 

 

80,893

 

 

 

3,732

 

Deferred income taxes

 

 

64,416

 

 

 

54,980

 

Total liabilities

 

 

575,133

 

 

 

438,080

 

 

 

 

 

 

 

 

Redeemable noncontrolling interest

 

 

-

 

 

 

33,285

 

Stockholders' equity

 

 

 

 

 

 

Class A common stock

 

 

6

 

 

 

6

 

Class B common stock

 

 

2

 

 

 

2

 

Class U common stock

 

 

1

 

 

 

1

 

Additional paid-in capital

 

 

780,426

 

 

 

828,813

 

Accumulated deficit

 

 

(526,362

)

 

 

(551,786

)

Accumulated other comprehensive income (loss)

 

 

(803

)

 

 

(1,056

)

Total stockholders' equity

 

 

253,270

 

 

 

275,980

 

Total liabilities and stockholders' equity

 

$

828,403

 

 

$

747,345

 

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,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Net revenue

 

$

199,008

 

 

$

62,978

 

 

$

526,298

 

 

$

172,343

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue - digital

 

 

124,332

 

 

 

7,808

 

 

 

318,118

 

 

 

21,602

 

Direct operating expenses

 

 

28,583

 

 

 

24,178

 

 

 

83,480

 

 

 

72,997

 

Selling, general and administrative expenses

 

 

14,530

 

 

 

9,883

 

 

 

41,489

 

 

 

34,371

 

Corporate expenses

 

 

7,253

 

 

 

6,287

 

 

 

21,756

 

 

 

18,511

 

Depreciation and amortization

 

 

5,901

 

 

 

3,934

 

 

 

16,159

 

 

 

12,319

 

Impairment charge

 

 

166

 

 

 

-

 

 

 

1,604

 

 

 

39,835

 

Foreign currency (gain) loss

 

 

177

 

 

 

(680

)

 

 

454

 

 

 

673

 

Other operating (gain) loss

 

 

(2,431

)

 

 

(2,683

)

 

 

(4,867

)

 

 

(5,549

)

 

 

 

178,511

 

 

 

48,727

 

 

 

478,193

 

 

 

194,759

 

Operating income (loss)

 

 

20,497

 

 

 

14,251

 

 

 

48,105

 

 

 

(22,416

)

Interest expense

 

 

(1,714

)

 

 

(1,969

)

 

 

(5,287

)

 

 

(6,673

)

Interest income

 

 

12

 

 

 

467

 

 

 

235

 

 

 

1,630

 

Dividend income

 

 

207

 

 

 

3

 

 

 

211

 

 

 

26

 

Income (loss) before income taxes

 

 

19,002

 

 

 

12,752

 

 

 

43,264

 

 

 

(27,433

)

Income tax benefit (expense)

 

 

(5,118

)

 

 

(3,736

)

 

 

(11,902

)

 

 

3,195

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

 

13,884

 

 

 

9,016

 

 

 

31,362

 

 

 

(24,238

)

Net (income) loss attributable to redeemable noncontrolling interest

 

 

(1,753

)

 

 

-

 

 

 

(5,938

)

 

 

-

 

Net income (loss) attributable to common stockholders

 

$

12,131

 

 

$

9,016

 

 

$

25,424

 

 

$

(24,238

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share attributable to common stockholders, basic

 

$

0.14

 

 

$

0.11

 

 

$

0.30

 

 

$

(0.29

)

Net income (loss) per share attributable to common stockholders, diluted

 

$

0.14

 

 

$

0.11

 

 

$

0.29

 

 

$

(0.29

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share, basic and diluted

 

$

0.03

 

 

$

0.03

 

 

$

0.08

 

 

$

0.10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic

 

 

85,390,333

 

 

 

84,185,728

 

 

 

85,207,992

 

 

 

84,208,924

 

Weighted average common shares outstanding, diluted

 

 

88,315,732

 

 

 

84,863,020

 

 

 

87,694,395

 

 

 

84,208,924

 

Entravision Communications Corporation
Consolidated Statements of Cash Flows
(In thousands; unaudited)

 

 

 

Three-Month Period

 

 

Nine-Month Period

 

 

 

Ended September 30,

 

 

Ended September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

13,884

 

 

$

9,016

 

 

$

31,362

 

 

$

(24,238

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

5,901

 

 

 

3,934

 

 

 

16,159

 

 

 

12,319

 

Impairment charge

 

 

166

 

 

 

 

 

 

1,604

 

 

 

39,835

 

Deferred income taxes

 

 

4,649

 

 

 

(1,346

)

 

 

8,348

 

 

 

(8,744

)

Non-cash interest

 

 

153

 

 

 

159

 

 

 

451

 

 

 

491

 

Amortization of syndication contracts

 

 

119

 

 

 

125

 

 

 

357

 

 

 

383

 

Payments on syndication contracts

 

 

(115

)

 

 

(72

)

 

 

(354

)

 

 

(325

)

Non-cash stock-based compensation

 

 

1,094

 

 

 

816

 

 

 

3,300

 

 

 

2,408

 

(Gain) loss on disposal of property and equipment

 

 

(2,622

)

 

 

(140

)

 

 

(2,622

)

 

 

(767

)

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

(Increase) decrease in accounts receivable

 

 

(16,361

)

 

 

(5,228

)

 

 

(15,894

)

 

 

14,285

 

(Increase) decrease in prepaid expenses and other assets

 

 

(642

)

 

 

1,623

 

 

 

2,267

 

 

 

6,713

 

Increase (decrease) in accounts payable, accrued expenses and other liabilities

 

 

3,169

 

 

 

(2,633

)

 

 

8,802

 

 

 

(16,643

)

Net cash provided by operating activities

 

 

9,395

 

 

 

6,254

 

 

 

53,780

 

 

 

25,717

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from sale of property and equipment and intangibles

 

 

9,431

 

 

 

1,100

 

 

 

9,431

 

 

 

5,089

 

Purchases of property and equipment

 

 

(1,433

)

 

 

(2,065

)

 

 

(4,269

)

 

 

(7,741

)

Purchases of intangible assets

 

 

 

 

 

 

 

 

 

 

 

(158

)

Purchase of a businesses, net of cash acquired

 

 

(12,847

)

 

 

 

 

 

(12,847

)

 

 

 

Proceeds from marketable securities

 

 

10,000

 

 

 

11,620

 

 

 

27,800

 

 

 

38,480

 

Purchases of investments

 

 

(800

)

 

 

 

 

 

(800

)

 

 

 

Net cash provided by investing activities

 

 

4,351

 

 

 

10,655

 

 

 

19,315

 

 

 

35,670

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from stock option exercises

 

 

242

 

 

 

 

 

 

414

 

 

 

 

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

 

 

(70

)

 

 

 

 

 

(528

)

 

 

(15

)

Payments on long-term debt

 

 

(750

)

 

 

(750

)

 

 

(2,250

)

 

 

(2,250

)

Dividends paid

 

 

(2,136

)

 

 

(2,106

)

 

 

(6,395

)

 

 

(8,428

)

Repurchase of Class A common stock

 

 

 

 

 

 

 

 

 

 

 

(525

)

Payments of capitalized debt costs

 

 

 

 

 

 

 

 

(604

)

 

 

 

Net cash used in financing activities

 

 

(2,714

)

 

 

(2,856

)

 

 

(9,363

)

 

 

(11,218

)

Effect of exchange rates on cash, cash equivalents and restricted cash

 

 

(3

)

 

 

(39

)

 

 

(3

)

 

 

(7

)

Net increase (decrease) in cash, cash equivalents and restricted cash

 

 

11,029

 

 

 

14,014

 

 

 

63,729

 

 

 

50,162

 

Cash, cash equivalents and restricted cash:

 

 

 

 

 

 

 

 

 

 

 

 

Beginning

 

 

172,611

 

 

 

70,005

 

 

 

119,911

 

 

 

33,857

 

Ending

 

$

183,640

 

 

$

84,019

 

 

$

183,640

 

 

$

84,019

 

Entravision Communications Corporation
Reconciliation of Consolidated Adjusted EBITDA to Cash Flows From Operating Activities
(In thousands; unaudited)

The most directly comparable GAAP financial measure is operating cash flow. 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,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated adjusted EBITDA (1)

 

$

23,195

 

 

$

16,371

 

 

$

55,177

 

 

$

27,773

 

EBITDA attributable to redeemable noncontrolling interest

 

 

2,036

 

 

 

-

 

 

 

9,127

 

 

 

-

 

Interest expense

 

 

(1,714

)

 

 

(1,969

)

 

 

(5,287

)

 

 

(6,673

)

Interest income

 

 

12

 

 

 

467

 

 

 

235

 

 

 

1,630

 

Dividend income

 

 

207

 

 

 

3

 

 

 

211

 

 

 

26

 

Income tax expense

 

 

(5,118

)

 

 

(3,736

)

 

 

(11,902

)

 

 

3,195

 

Amortization of syndication contracts

 

 

(119

)

 

 

(125

)

 

 

(357

)

 

 

(383

)

Payments on syndication contracts

 

 

115

 

 

 

72

 

 

 

354

 

 

 

325

 

Non-cash stock-based compensation included in direct operating expenses

 

 

(321

)

 

 

(148

)

 

 

(971

)

 

 

(383

)

Non-cash stock-based compensation included in corporate expenses

 

 

(773

)

 

 

(668

)

 

 

(2,329

)

 

 

(2,025

)

Depreciation and amortization

 

 

(5,901

)

 

 

(3,934

)

 

 

(16,159

)

 

 

(12,319

)

Impairment charge

 

 

(166

)

 

 

-

 

 

 

(1,604

)

 

 

(39,835

)

Non-recurring cash severance charge

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,118

)

Other operating gain (loss)

 

 

2,431

 

 

 

2,683

 

 

 

4,867

 

 

 

5,549

 

Net (income) loss attributable to redeemable noncontrolling interest

 

 

(1,753

)

 

 

-

 

 

 

(5,938

)

 

 

-

 

Net income (loss) attributable to common stockholders

 

 

12,131

 

 

 

9,016

 

 

 

25,424

 

 

 

(24,238

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

5,901

 

 

 

3,934

 

 

 

16,159

 

 

 

12,319

 

Impairment charge

 

 

166

 

 

 

-

 

 

 

1,604

 

 

 

39,835

 

Deferred income taxes

 

 

4,649

 

 

 

(1,346

)

 

 

8,348

 

 

 

(8,744

)

Non-cash interest

 

 

153

 

 

 

159

 

 

 

451

 

 

 

491

 

Amortization of syndication contracts

 

 

119

 

 

 

125

 

 

 

357

 

 

 

383

 

Payments on syndication contracts

 

 

(115

)

 

 

(72

)

 

 

(354

)

 

 

(325

)

Non-cash stock-based compensation

 

 

1,094

 

 

 

816

 

 

 

3,300

 

 

 

2,408

 

(Gain) loss on disposal of property and equipment

 

 

(2,622

)

 

 

(140

)

 

 

(2,622

)

 

 

(767

)

Net income (loss) attributable to redeemable noncontrolling interest

 

 

1,753

 

 

 

-

 

 

 

5,938

 

 

 

-

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

(Increase) decrease in accounts receivable

 

 

(16,361

)

 

 

(5,228

)

 

 

(15,894

)

 

 

14,285

 

(Increase) decrease in prepaid expenses and other assets

 

 

(642

)

 

 

1,623

 

 

 

2,267

 

 

 

6,713

 

Increase (decrease) in accounts payable, accrued expenses and other liabilities

 

 

3,169

 

 

 

(2,633

)

 

 

8,802

 

 

 

(16,643

)

Cash flows from operating activities

 

 

9,395

 

 

 

6,254

 

 

 

53,780

 

 

 

25,717

 

(1)

Consolidated adjusted 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 operating cash flow. 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,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Consolidated adjusted EBITDA (1)

 

$

23,195

 

 

$

16,371

 

 

$

55,177

 

 

$

27,773

 

Net interest expense (1)

 

 

(1,549

)

 

 

(1,343

)

 

 

(4,601

)

 

 

(4,552

)

Dividend income

 

 

207

 

 

 

3

 

 

 

211

 

 

 

26

 

Cash paid for income taxes

 

 

(469

)

 

 

(5,082

)

 

 

(3,554

)

 

 

(5,549

)

Capital expenditures (2)

 

 

(1,433

)

 

 

(2,065

)

 

 

(4,269

)

 

 

(7,741

)

Non-recurring cash severance charge

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,118

)

Other operating gain (loss)

 

 

2,431

 

 

 

2,683

 

 

 

4,867

 

 

 

5,549

 

Free cash flow (1)

 

 

22,382

 

 

 

10,567

 

 

 

47,831

 

 

 

14,388

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures (2)

 

 

1,433

 

 

 

2,065

 

 

 

4,269

 

 

 

7,741

 

EBITDA attributable to redeemable noncontrolling interest

 

 

2,036

 

 

 

-

 

 

 

9,127

 

 

 

-

 

(Gain) loss on disposal of property and equipment

 

 

(2,622

)

 

 

(140

)

 

 

(2,622

)

 

 

(767

)

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

(Increase) decrease in accounts receivable

 

 

(16,361

)

 

 

(5,228

)

 

 

(15,894

)

 

 

14,285

 

(Increase) decrease in prepaid expenses and other assets

 

 

(642

)

 

 

1,623

 

 

 

2,267

 

 

 

6,713

 

Increase (decrease) in accounts payable, accrued expenses and other liabilities

 

 

3,169

 

 

 

(2,633

)

 

 

8,802

 

 

 

(16,643

)

Cash Flows From Operating Activities

 

$

9,395

 

 

$

6,254

 

 

$

53,780

 

 

$

25,717

 

(1)

Consolidated adjusted EBITDA, net interest expense, and free cash flow are defined on page 2.

(2)

Capital expenditures are not part of the consolidated statement of operations.

 

Christopher T. Young
Chief Financial Officer
Entravision Communications Corporation
310-447-3870

Kimberly Esterkin
ADDO Investor Relations
310-829-5400
evc@addo.com

Source: Entravision Communications Corporation