EVC - Entravision Communications Corporation Reports Third Quarter 2022 Results
Entravision Communications Corporation (NYSE: EVC), a leading global advertising solutions, media and technology company, today announced financial results for the three- and nine-month periods ended September 30, 2022.
Third Quarter 2022 Highlights
- Record third quarter advertising revenue
- Net revenue up 21% over the prior-year quarter
- Net income attributable to common stockholders down 23% over the prior-year quarter
- Consolidated adjusted EBITDA up 12% over the prior-year quarter
- Operating cash flow up 62% over the prior-year quarter
- Free cash flow down 31% over the prior-year quarter
- Quarterly cash dividend of $0.025 per share
“Entravision continued to see progress in the third quarter of 2022, with revenue up 21% versus the prior-year period. Adjusted EBITDA also improved double-digits, increasing 12% year-over-year,” said Walter Ulloa, Chairman and Chief Executive Officer. “Entravision’s strength throughout the quarter was again driven by our digital segment, where revenue improved 29% versus the third quarter of 2021. In our television and audio businesses, political ad spend, in particular, continued to perform strongly."
Mr. Ulloa continued, “Entravision’s solid performance in the third quarter, together with our progress year-to-date, demonstrates the resiliency and growth of our business in a tough macro environment. We continue to strategically expand across the globe and now have operations in 40 countries across five continents in service of more than 7,000 clients. We are thoughtfully positioning our digital teams in emerging economies where Entravision’s unique offerings have a key first-mover advantage and where a critical mass of connected consumers exists alongside a growing advertising industry. We remain optimistic in finding multiple growth opportunities around the world for our digital business and look forward to sharing our progress as we continue to grow and expand globally."
Quarterly Cash Dividend
The Company 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 30, 2022 to shareholders of record as of the close of business on December 15, 2022, and the common stock will trade ex-dividend on December 14, 2022. 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 (In thousands, except share and per share data) |
|
|
| Three-Month Period |
|
|
|
|
| Nine-Month Period |
|
|
|
|
| Ended September 30, |
|
|
|
|
| Ended September 30, |
|
|
|
|
| 2022 |
|
|
|
|
| 2021 |
|
|
|
|
| % Change |
|
|
|
|
| 2022 |
|
|
|
|
| 2021 |
|
|
|
|
| % Change |
|
|
| Net revenue |
| $ |
| 241,014 |
|
|
|
|
| $ |
| 199,008 |
|
|
|
|
|
|
| 21 |
| % |
|
|
| $ |
| 659,881 |
|
|
|
|
| $ |
| 526,298 |
|
|
|
|
|
|
| 25 |
| % |
| Cost of revenue - digital (1) |
|
|
| 157,095 |
|
|
|
|
|
|
| 124,332 |
|
|
|
|
|
|
| 26 |
| % |
|
|
|
|
| 431,951 |
|
|
|
|
|
|
| 318,118 |
|
|
|
|
|
|
| 36 |
| % |
| Operating expenses (2) |
|
|
| 49,294 |
|
|
|
|
|
|
| 43,113 |
|
|
|
|
|
|
| 14 |
| % |
|
|
|
|
| 140,527 |
|
|
|
|
|
|
| 124,969 |
|
|
|
|
|
|
| 12 |
| % |
| Corporate expenses (3) |
|
|
| 9,525 |
|
|
|
|
|
|
| 7,253 |
|
|
|
|
|
|
| 31 |
| % |
|
|
|
|
| 26,769 |
|
|
|
|
|
|
| 21,756 |
|
|
|
|
|
|
| 23 |
| % |
| Foreign currency (gain) loss |
|
|
| 1,966 |
|
|
|
|
|
|
| 177 |
|
|
|
|
| * |
|
|
|
|
|
|
| 2,112 |
|
|
|
|
|
|
| 454 |
|
|
|
|
|
|
| 365 |
| % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated adjusted EBITDA (4) |
|
|
| 25,972 |
|
|
|
|
|
|
| 23,195 |
|
|
|
|
|
|
| 12 |
| % |
|
|
|
|
| 66,566 |
|
|
|
|
|
|
| 55,177 |
|
|
|
|
|
|
| 21 |
| % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Free cash flow (5) |
| $ |
| 15,443 |
|
|
|
|
| $ |
| 22,382 |
|
|
|
|
|
|
| (31 |
| )% |
|
|
| $ |
| 44,026 |
|
|
|
|
| $ |
| 47,831 |
|
|
|
|
|
|
| (8 |
| )% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) |
| $ |
| 9,090 |
|
|
|
|
| $ |
| 13,884 |
|
|
|
|
|
|
| (35 |
| )% |
|
|
| $ |
| 19,444 |
|
|
|
|
| $ |
| 31,362 |
|
|
|
|
|
|
| (38 |
| )% |
| Net (income) loss attributable to redeemable noncontrolling interest |
| $ |
| - |
|
|
|
|
| $ |
| (1,753 |
| ) |
|
|
|
|
| (100 |
| )% |
|
|
| $ |
| - |
|
|
|
|
| $ |
| (5,938 |
| ) |
|
|
|
|
| (100 |
| )% |
| Net (income) loss attributable to noncontrolling interest |
| $ |
| 303 |
|
|
|
|
| $ |
| - |
|
|
|
|
| * |
|
|
|
|
| $ |
| 303 |
|
|
|
|
| $ |
| - |
|
|
|
|
| * |
|
|
| Net income (loss) attributable to common stockholders |
| $ |
| 9,393 |
|
|
|
|
| $ |
| 12,131 |
|
|
|
|
|
|
| (23 |
| )% |
|
|
| $ |
| 19,747 |
|
|
|
|
| $ |
| 25,424 |
|
|
|
|
|
|
| (22 |
| )% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) per share attributable to common stockholders, basic |
| $ |
| 0.11 |
|
|
|
|
| $ |
| 0.14 |
|
|
|
|
|
|
| (21 |
| )% |
|
|
| $ |
| 0.23 |
|
|
|
|
| $ |
| 0.30 |
|
|
|
|
|
|
| (23 |
| )% |
| Net income (loss) per share attributable to common stockholders, diluted |
| $ |
| 0.11 |
|
|
|
|
| $ |
| 0.14 |
|
|
|
|
|
|
| (21 |
| )% |
|
|
| $ |
| 0.23 |
|
|
|
|
| $ |
| 0.29 |
|
|
|
|
|
|
| (21 |
| )% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average common shares outstanding, basic |
|
|
| 84,945,873 |
|
|
|
|
|
|
| 85,390,333 |
|
|
|
|
|
|
|
|
|
|
|
|
| 85,469,675 |
|
|
|
|
|
|
| 85,207,992 |
|
|
|
|
|
|
|
|
| Weighted average common shares outstanding, diluted |
|
|
| 87,417,501 |
|
|
|
|
|
|
| 88,315,732 |
|
|
|
|
|
|
|
|
|
|
|
|
| 87,671,726 |
|
|
|
|
|
|
| 87,694,395 |
|
|
|
|
|
|
|
|
| (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 include direct operating and selling, general and administrative expenses. Included in operating expenses are $1.0 million and $0.3 million of non-cash stock-based compensation for the three-month periods ended September 30, 2022 and 2021, respectively, and $2.9 million and $1.0 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2022 and 2021, respectively. |
| (3) |
| Corporate expenses include $1.8 million and $0.8 million of non-cash stock-based compensation for the three-month periods ended September 30, 2022 and 2021, respectively, and $5.1 million and $2.3 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2022 and 2021, 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 (In thousands) |
|
|
| Three-Month Period |
|
|
|
|
| Ended September 30, |
|
|
|
|
| 2022 |
|
|
|
|
| 2021 |
|
|
|
|
| % Change |
|
|
| Net revenue |
| $ |
| 241,014 |
|
|
|
|
| $ |
| 199,008 |
|
|
|
|
|
|
| 21 |
| % |
| Cost of revenue - digital (1) |
|
|
| 157,095 |
|
|
|
|
|
|
| 124,332 |
|
|
|
|
|
|
| 26 |
| % |
| Operating expenses (1) |
|
|
| 49,294 |
|
|
|
|
|
|
| 43,113 |
|
|
|
|
|
|
| 14 |
| % |
| Corporate expenses (1) |
|
|
| 9,525 |
|
|
|
|
|
|
| 7,253 |
|
|
|
|
|
|
| 31 |
| % |
| Depreciation and amortization |
|
|
| 6,554 |
|
|
|
|
|
|
| 5,901 |
|
|
|
|
|
|
| 11 |
| % |
| Change in fair value of contingent consideration |
|
|
| 734 |
|
|
|
|
|
|
| - |
|
|
|
|
| * |
|
|
| Impairment charge |
|
|
| - |
|
|
|
|
|
|
| 166 |
|
|
|
|
|
|
| (100 |
| )% |
| Foreign currency (gain) loss |
|
|
| 1,966 |
|
|
|
|
|
|
| 177 |
|
|
|
|
| * |
|
|
| Other operating (gain) loss |
|
|
| (58 |
| ) |
|
|
|
|
| (2,431 |
| ) |
|
|
|
|
| (98 |
| )% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating income (loss) |
|
|
| 15,904 |
|
|
|
|
|
|
| 20,497 |
|
|
|
|
|
|
| (22 |
| )% |
| Interest expense, net |
|
|
| (2,267 |
| ) |
|
|
|
|
| (1,702 |
| ) |
|
|
|
|
| 33 |
| % |
| Dividend income |
|
|
| 6 |
|
|
|
|
|
|
| 207 |
|
|
|
|
|
|
| (97 |
| )% |
| Realized gain (loss) on marketable securities |
|
|
| (473 |
| ) |
|
|
|
|
| - |
|
|
|
|
| * |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income (loss) before income taxes |
|
|
| 13,170 |
|
|
|
|
|
|
| 19,002 |
|
|
|
|
|
|
| (31 |
| )% |
| Income tax benefit (expense) |
|
|
| (4,080 |
| ) |
|
|
|
|
| (5,118 |
| ) |
|
|
|
|
| (20 |
| )% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) |
|
|
| 9,090 |
|
|
|
|
|
|
| 13,884 |
|
|
|
|
|
|
| (35 |
| )% |
| Net (income) loss attributable to redeemable noncontrolling interest |
|
|
| - |
|
|
|
|
|
|
| (1,753 |
| ) |
|
|
|
|
| (100 |
| )% |
| Net (income) loss attributable to noncontrolling interest |
|
|
| 303 |
|
|
|
|
|
|
| - |
|
|
|
|
| * |
|
|
| Net income (loss) attributable to common stockholders |
| $ |
| 9,393 |
|
|
|
|
| $ |
| 12,131 |
|
|
|
|
|
|
| (23 |
| )% |
| (1) |
| Cost of revenue, operating expenses and corporate expenses are defined on page 2. |
Net revenue in the third quarter of 2022 totaled $241.0 million, up 21% from $199.0 million in the prior-year period. Of the overall increase, approximately $42.8 million was attributable to our digital segment and was primarily due to advertising revenue growth from our digital commercial partnerships business, and due to our investment in a variable interest entity during the third quarter of 2022 and our acquisition of 365 Digital during the fourth quarter of 2021, neither of which contributed to net revenue in the comparable period ended September 30, 2021. In addition, of the overall increase, approximately $0.1 million was attributable to our audio segment, primarily due to increases in political advertising revenue and local advertising revenue, partially offset by a decrease in national advertising revenue. The overall increase was partially offset by a decrease of approximately $0.8 million attributable to our television segment, primarily due to decreases in local and national advertising revenue, and a decrease in retransmission consent revenue. These decreases were mainly attributed to the expiration of our Univision and UniMás network affiliation agreements in Orlando, Tampa and Washington, D.C. on December 31, 2021. The decrease in our television segment revenue was partially offset by increases in political advertising revenue and spectrum usage rights revenue.
Cost of revenue in the third quarter of 2022 totaled $157.1 million, up 26% from $124.3 million in the prior-year period. The increase was primarily due to increased cost of revenue related to advertising revenue growth from our digital commercial partnerships business, and due to our investment in a variable interest entity during the third quarter of 2022 and our acquisition of 365 Digital during the fourth quarter of 2021, neither of which incurred cost of revenue for us in the comparable period ended September 30, 2021.
Operating expenses in the third quarter of 2022 totaled $49.3 million, up 14% from $43.1 million in the prior-year period. Of the overall increase, approximately $5.9 million was attributable to our digital segment and was primarily due to an increase in expenses associated with the increase in digital advertising revenue, an increase in salary expense and our investment in a variable interest entity during the third quarter of 2022 and our acquisition of 365 Digital during the fourth quarter of 2021, which did not incur operating expenses for us in the comparable period. Additionally, of the overall increase in operating expenses, approximately $0.4 million was attributable to our audio segment primarily due to an increase in expenses associated with the increase in local advertising revenue. The overall increase in operating expenses was partially offset by a decrease of approximately $0.1 million that was attributable to our television segment primarily due to a decrease in expenses associated with the decrease in local and national advertising revenue, partially offset by an increase in rent expense and an increase in bad debt expense.
Corporate expenses in the third quarter of 2022 totaled $9.5 million, up 31% from $7.3 million in the prior-year period. The increase was primarily due to increases in non-cash stock-based compensation and an increase in salaries.
| Unaudited Financial Results (In thousands) |
|
|
| Nine-Month Period |
|
|
|
|
| Ended September 30, |
|
|
|
|
| 2022 |
|
|
|
|
| 2021 |
|
|
|
|
| % Change |
|
|
| Net revenue |
| $ |
| 659,881 |
|
|
|
|
| $ |
| 526,298 |
|
|
|
|
|
|
| 25 |
| % |
| Cost of revenue - digital (1) |
|
|
| 431,951 |
|
|
|
|
|
|
| 318,118 |
|
|
|
|
|
|
| 36 |
| % |
| Operating expenses (1) |
|
|
| 140,527 |
|
|
|
|
|
|
| 124,969 |
|
|
|
|
|
|
| 12 |
| % |
| Corporate expenses (1) |
|
|
| 26,769 |
|
|
|
|
|
|
| 21,756 |
|
|
|
|
|
|
| 23 |
| % |
| Depreciation and amortization |
|
|
| 19,212 |
|
|
|
|
|
|
| 16,159 |
|
|
|
|
|
|
| 19 |
| % |
| Change in fair value of contingent consideration |
|
|
| 6,810 |
|
|
|
|
|
|
| - |
|
|
|
|
| * |
|
|
| Impairment charge |
|
|
| - |
|
|
|
|
|
|
| 1,604 |
|
|
|
|
|
|
| (100 |
| )% |
| Foreign currency (gain) loss |
|
|
| 2,112 |
|
|
|
|
|
|
| 454 |
|
|
|
|
|
|
| 365 |
| % |
| Other operating (gain) loss |
|
|
| (1,011 |
| ) |
|
|
|
|
| (4,867 |
| ) |
|
|
|
|
| (79 |
| )% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating income (loss) |
|
|
| 33,511 |
|
|
|
|
|
|
| 48,105 |
|
|
|
|
|
|
| (30 |
| )% |
| Interest expense, net |
|
|
| (5,309 |
| ) |
|
|
|
|
| (5,052 |
| ) |
|
|
|
|
| 5 |
| % |
| Dividend income |
|
|
| 20 |
|
|
|
|
|
|
| 211 |
|
|
|
|
|
|
| (91 |
| )% |
| Realized gain (loss) on marketable securities |
|
|
| (473 |
| ) |
|
|
|
|
| - |
|
|
|
|
| * |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income (loss) before income taxes |
|
|
| 27,749 |
|
|
|
|
|
|
| 43,264 |
|
|
|
|
|
|
| (36 |
| )% |
| Income tax benefit (expense) |
|
|
| (8,305 |
| ) |
|
|
|
|
| (11,902 |
| ) |
|
|
|
|
| (30 |
| )% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) |
|
|
| 19,444 |
|
|
|
|
|
|
| 31,362 |
|
|
|
|
|
|
| (38 |
| )% |
| Net (income) loss attributable to redeemable noncontrolling interest |
|
|
| - |
|
|
|
|
|
|
| (5,938 |
| ) |
|
|
|
|
| (100 |
| )% |
| Net (income) loss attributable to noncontrolling interest |
|
|
| 303 |
|
|
|
|
|
|
| - |
|
|
|
|
| * |
|
|
| Net income (loss) attributable to common stockholders |
| $ |
| 19,747 |
|
|
|
|
| $ |
| 25,424 |
|
|
|
|
|
|
| (22 |
| )% |
| (1) |
| Cost of revenue, operating expenses and corporate expenses are defined on page 2. |
Net revenue for the nine-month period of 2022 totaled $659.9 million, up 25% from $526.3 million in the prior-year period. Of the overall increase, approximately $139.1 million was attributable to our digital segment and was primarily due to advertising revenue growth from our digital commercial partnerships business. In addition, the increase in net revenue in our digital segment was due to our investment in a variable interest entity and our acquisition of 365 Digital during the third quarter of 2022 and fourth quarter of 2021, respectively, neither of which contributed to net revenue in the comparable period ended September 30, 2021, and due to our acquisition of MediaDonuts during the third of 2021, which only partially contributed to net revenue in the comparable period ended September 30, 2021. Additionally, of the overall increase, approximately $2.1 million was attributable to our audio segment, primarily due to increases in political advertising revenue and local advertising revenue, partially offset by a decrease in national advertising revenue. The overall increase was partially offset by a decrease of approximately $7.7 million attributable to our television segment, primarily due to decreases in local and national advertising revenue, and a decrease in retransmission consent revenue. These decreases were mainly attributed to the expiration of our Univision and UniMás network affiliation agreements in Orlando, Tampa and Washington, D.C. on December 31, 2021. The decrease in our television segment revenue was partially offset by increases in political advertising revenue and spectrum usage rights revenue.
Cost of revenue for the nine-month period of 2022 totaled $432.0 million, up 36% from $318.1 million in the prior-year period. The increase was primarily due to increased cost of revenue related to advertising revenue growth from our digital commercial partnerships business, and due to our investment in a variable interest entity and our acquisition of 365 Digital during the third quarter of 2022 and fourth quarter of 2021, respectively, neither of which incurred cost of revenue for us in the comparable period ended September 30, 2021, and due to our acquisition of MediaDonuts during the third of 2021, which only partially incurred cost of revenue for us in the comparable period ended September 30, 2021.
Operating expenses for the nine-month period of 2022 totaled $140.5 million, up 12% from $125.0 million in the prior-year period. Of the overall increase, approximately $15.5 million was attributable to our digital segment and was primarily due to an increase in expenses associated with the increase in digital advertising revenue and an increase in salary expense. In addition, the increase in operating expenses in our digital segment was due to our investment in a variable interest entity and our acquisition of 365 Digital during the third quarter of 2022 and fourth quarter of 2021, respectively, neither of which incurred operating expenses for us in the comparable period ended September 30, 2021, and due to our acquisition of MediaDonuts during the third of 2021, which only partially incurred operating expenses for us in the comparable period ended September 30, 2021. Additionally, of the overall increase in operating expenses, approximately $0.6 million was attributable to our audio segment primarily due to an increase in expenses associated with the increase in local advertising revenue. The overall increase in operating expenses was partially offset by a decrease of approximately $0.6 million that was attributable to our television segment primarily due to a decrease in expenses associated with the decrease in local and national advertising revenue, partially offset by an increase in rent expense and bad debt expense.
Corporate expenses for the nine-month period of 2022 totaled $26.8 million, up 23% from $21.8 million in the prior-year period. The increase was primarily due to increases in non-cash stock-based compensation and an increase in salaries.
Balance Sheet and Related Metrics
Cash and marketable securities as of September 30, 2022 totaled approximately $164.8 million. Total debt under the Company’s credit agreement was $210.0 million. Net of $75 million of cash and marketable securities, total leverage as defined in the Company’s credit agreement was 1.4 times as of September 30, 2022. Net of total cash and marketable securities, total leverage was 0.5 times.
| Unaudited Segment Results (In thousands) |
|
|
| Three-Month Period |
|
|
|
|
| Nine-Month Period |
|
|
|
|
| Ended September 30, |
|
|
|
|
| Ended September 30, |
|
|
|
|
| 2022 |
|
|
|
|
| 2021 |
|
|
|
|
| % Change |
|
|
|
|
| 2022 |
|
|
|
|
| 2021 |
|
|
|
|
| % Change |
|
|
| Net Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Digital |
| $ |
| 188,877 |
|
|
|
|
| $ |
| 146,121 |
|
|
|
|
|
|
| 29 |
| % |
|
|
| $ |
| 516,966 |
|
|
|
|
| $ |
| 377,826 |
|
|
|
|
|
|
| 37 |
| % |
| Television |
|
|
| 35,678 |
|
|
|
|
|
|
| 36,450 |
|
|
|
|
|
|
| (2 |
| )% |
|
|
|
|
| 98,918 |
|
|
|
|
|
|
| 106,598 |
|
|
|
|
|
|
| (7 |
| )% |
| Audio |
|
|
| 16,459 |
|
|
|
|
|
|
| 16,437 |
|
|
|
|
|
|
| 0 |
| % |
|
|
|
|
| 43,997 |
|
|
|
|
|
|
| 41,874 |
|
|
|
|
|
|
| 5 |
| % |
| Total |
| $ |
| 241,014 |
|
|
|
|
| $ |
| 199,008 |
|
|
|
|
|
|
| 21 |
| % |
|
|
| $ |
| 659,881 |
|
|
|
|
| $ |
| 526,298 |
|
|
|
|
|
|
| 25 |
| % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of Revenue - digital (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Digital |
| $ |
| 157,095 |
|
|
|
|
| $ |
| 124,332 |
|
|
|
|
|
|
| 26 |
| % |
|
|
| $ |
| 431,951 |
|
|
|
|
| $ |
| 318,118 |
|
|
|
|
|
|
| 36 |
| % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating Expenses (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Digital |
|
|
| 19,080 |
|
|
|
|
|
|
| 13,187 |
|
|
|
|
|
|
| 45 |
| % |
|
|
|
|
| 51,577 |
|
|
|
|
|
|
| 36,064 |
|
|
|
|
|
|
| 43 |
| % |
| Television |
|
|
| 20,003 |
|
|
|
|
|
|
| 20,148 |
|
|
|
|
|
|
| (1 |
| )% |
|
|
|
|
| 58,969 |
|
|
|
|
|
|
| 59,548 |
|
|
|
|
|
|
| (1 |
| )% |
| Audio |
|
|
| 10,211 |
|
|
|
|
|
|
| 9,778 |
|
|
|
|
|
|
| 4 |
| % |
|
|
|
|
| 29,981 |
|
|
|
|
|
|
| 29,357 |
|
|
|
|
|
|
| 2 |
| % |
| Total |
| $ |
| 49,294 |
|
|
|
|
| $ |
| 43,113 |
|
|
|
|
|
|
| 14 |
| % |
|
|
| $ |
| 140,527 |
|
|
|
|
| $ |
| 124,969 |
|
|
|
|
|
|
| 12 |
| % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Corporate Expenses (1) |
| $ |
| 9,525 |
|
|
|
|
| $ |
| 7,253 |
|
|
|
|
|
|
| 31 |
| % |
|
|
| $ |
| 26,769 |
|
|
|
|
| $ |
| 21,756 |
|
|
|
|
|
|
| 23 |
| % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated adjusted EBITDA (1) |
| $ |
| 25,972 |
|
|
|
|
| $ |
| 23,195 |
|
|
|
|
|
|
| 12 |
| % |
|
|
| $ |
| 66,566 |
|
|
|
|
| $ |
| 55,177 |
|
|
|
|
|
|
| 21 |
| % |
| (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 2022 results on Thursday, November 3, 2022 at 4:30 p.m. Eastern Time. To access the conference call, please dial (844) 836-8739 (U.S.) or (412) 317-5440 (Int’l) ten minutes prior to the start time and reference Conference ID number 10171311. 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 leading global advertising, media and ad-tech solutions company connecting brands to consumers by representing top platforms and publishers. Our dynamic portfolio includes digital, television and audio offerings. Digital, our largest revenue segment, is comprised of four business units: our digital sales representation business; Smadex, our programmatic ad purchasing platform; our branding and mobile performance solutions business; and our digital audio business. Through our digital sales representation business, we connect global media companies such as Meta, Twitter, TikTok and Spotify with advertisers in primarily emerging growth markets worldwide. Smadex is our mobile-first demand side platform, enabling advertisers to execute performance campaigns using machine learning. We also offer a branding and mobile performance solutions business, which provides managed services to advertisers looking to connect with global consumers, primarily on mobile devices, and our digital audio business provides digital audio advertising solutions for advertisers in the Americas. In addition to digital, Entravision has 49 television stations and is the largest affiliate group of the Univision and UniMás television networks. Entravision also manages 45 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 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, |
|
|
|
|
|
|
| 2022 |
|
|
|
|
| 2021 |
|
|
|
|
| 2022 |
|
|
|
|
| 2021 |
|
|
| Net revenue |
|
|
| $ |
| 241,014 |
|
|
|
|
| $ |
| 199,008 |
|
|
|
|
| $ |
| 659,881 |
|
|
|
|
| $ |
| 526,298 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of revenue - digital |
|
|
|
|
| 157,095 |
|
|
|
|
|
|
| 124,332 |
|
|
|
|
|
|
| 431,951 |
|
|
|
|
|
|
| 318,118 |
|
|
| Direct operating expenses |
|
|
|
|
| 30,086 |
|
|
|
|
|
|
| 28,583 |
|
|
|
|
|
|
| 87,505 |
|
|
|
|
|
|
| 83,480 |
|
|
| Selling, general and administrative expenses |
|
|
|
|
| 19,208 |
|
|
|
|
|
|
| 14,530 |
|
|
|
|
|
|
| 53,022 |
|
|
|
|
|
|
| 41,489 |
|
|
| Corporate expenses |
|
|
|
|
| 9,525 |
|
|
|
|
|
|
| 7,253 |
|
|
|
|
|
|
| 26,769 |
|
|
|
|
|
|
| 21,756 |
|
|
| Depreciation and amortization |
|
|
|
|
| 6,554 |
|
|
|
|
|
|
| 5,901 |
|
|
|
|
|
|
| 19,212 |
|
|
|
|
|
|
| 16,159 |
|
|
| Change in fair value of contingent consideration |
|
|
|
|
| 734 |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| 6,810 |
|
|
|
|
|
|
| - |
|
|
| Impairment charge |
|
|
|
|
| - |
|
|
|
|
|
|
| 166 |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| 1,604 |
|
|
| Foreign currency (gain) loss |
|
|
|
|
| 1,966 |
|
|
|
|
|
|
| 177 |
|
|
|
|
|
|
| 2,112 |
|
|
|
|
|
|
| 454 |
|
|
| Other operating (gain) loss |
|
|
|
|
| (58 |
| ) |
|
|
|
|
| (2,431 |
| ) |
|
|
|
|
| (1,011 |
| ) |
|
|
|
|
| (4,867 |
| ) |
|
|
|
|
|
|
| 225,110 |
|
|
|
|
|
|
| 178,511 |
|
|
|
|
|
|
| 626,370 |
|
|
|
|
|
|
| 478,193 |
|
|
| Operating income (loss) |
|
|
|
|
| 15,904 |
|
|
|
|
|
|
| 20,497 |
|
|
|
|
|
|
| 33,511 |
|
|
|
|
|
|
| 48,105 |
|
|
| Interest expense |
|
|
|
|
| (3,055 |
| ) |
|
|
|
|
| (1,714 |
| ) |
|
|
|
|
| (7,225 |
| ) |
|
|
|
|
| (5,287 |
| ) |
| Interest income |
|
|
|
|
| 788 |
|
|
|
|
|
|
| 12 |
|
|
|
|
|
|
| 1,916 |
|
|
|
|
|
|
| 235 |
|
|
| Dividend income |
|
|
|
|
| 6 |
|
|
|
|
|
|
| 207 |
|
|
|
|
|
|
| 20 |
|
|
|
|
|
|
| 211 |
|
|
| Realized gain (loss) on marketable securities |
|
|
|
|
| (473 |
| ) |
|
|
|
|
| - |
|
|
|
|
|
|
| (473 |
| ) |
|
|
|
|
| - |
|
|
| Income (loss) before income taxes |
|
|
|
|
| 13,170 |
|
|
|
|
|
|
| 19,002 |
|
|
|
|
|
|
| 27,749 |
|
|
|
|
|
|
| 43,264 |
|
|
| Income tax benefit (expense) |
|
|
|
|
| (4,080 |
| ) |
|
|
|
|
| (5,118 |
| ) |
|
|
|
|
| (8,305 |
| ) |
|
|
|
|
| (11,902 |
| ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) |
|
|
|
|
| 9,090 |
|
|
|
|
|
|
| 13,884 |
|
|
|
|
|
|
| 19,444 |
|
|
|
|
|
|
| 31,362 |
|
|
| Net (income) loss attributable to redeemable noncontrolling interest |
|
|
|
|
| - |
|
|
|
|
|
|
| (1,753 |
| ) |
|
|
|
|
| - |
|
|
|
|
|
|
| (5,938 |
| ) |
| Net (income) loss attributable to noncontrolling interest |
|
|
|
|
| 303 |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| 303 |
|
|
|
|
|
|
| - |
|
|
| Net income (loss) attributable to common stockholders |
|
|
| $ |
| 9,393 |
|
|
|
|
| $ |
| 12,131 |
|
|
|
|
| $ |
| 19,747 |
|
|
|
|
| $ |
| 25,424 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic and diluted earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) per share attributable to common stockholders, basic |
|
|
| $ |
| 0.11 |
|
|
|
|
| $ |
| 0.14 |
|
|
|
|
| $ |
| 0.23 |
|
|
|
|
| $ |
| 0.30 |
|
|
| Net income (loss) per share attributable to common stockholders, diluted |
|
|
| $ |
| 0.11 |
|
|
|
|
| $ |
| 0.14 |
|
|
|
|
| $ |
| 0.23 |
|
|
|
|
| $ |
| 0.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash dividends declared per common share, basic and diluted |
|
|
| $ |
| 0.03 |
|
|
|
|
| $ |
| 0.03 |
|
|
|
|
| $ |
| 0.08 |
|
|
|
|
| $ |
| 0.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average common shares outstanding, basic |
|
|
|
|
| 84,945,873 |
|
|
|
|
|
|
| 85,390,333 |
|
|
|
|
|
|
| 85,469,675 |
|
|
|
|
|
|
| 85,207,992 |
|
|
| Weighted average common shares outstanding, diluted |
|
|
|
|
| 87,417,501 |
|
|
|
|
|
|
| 88,315,732 |
|
|
|
|
|
|
| 87,671,726 |
|
|
|
|
|
|
| 87,694,395 |
|
|
| Entravision Communications Corporation Consolidated Balance Sheets (In thousands; unaudited) |
|
|
|
|
| September 30, |
|
|
|
|
| December 31, |
|
|
|
|
|
|
| 2022 |
|
|
|
|
| 2021 |
|
|
| ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
| Current assets |
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
|
| $ |
| 121,589 |
|
|
|
|
| $ |
| 185,094 |
|
|
| Marketable securities |
|
|
|
|
| 43,212 |
|
|
|
|
|
|
| - |
|
|
| Restricted cash |
|
|
|
|
| 751 |
|
|
|
|
|
|
| 749 |
|
|
| Trade receivables, net of allowance for doubtful accounts |
|
|
|
|
| 194,291 |
|
|
|
|
|
|
| 201,747 |
|
|
| Assets held for sale |
|
|
|
|
| - |
|
|
|
|
|
|
| 1,963 |
|
|
| Prepaid expenses and other current assets |
|
|
|
|
| 42,517 |
|
|
|
|
|
|
| 18,925 |
|
|
| Total current assets |
|
|
|
|
| 402,360 |
|
|
|
|
|
|
| 408,478 |
|
|
| Property and equipment, net |
|
|
|
|
| 61,649 |
|
|
|
|
|
|
| 62,498 |
|
|
| Intangible assets subject to amortization, net |
|
|
|
|
| 64,704 |
|
|
|
|
|
|
| 64,034 |
|
|
| Intangible assets not subject to amortization |
|
|
|
|
| 209,053 |
|
|
|
|
|
|
| 209,053 |
|
|
| Goodwill |
|
|
|
|
| 86,715 |
|
|
|
|
|
|
| 71,708 |
|
|
| Deferred income taxes |
|
|
|
|
| 1,462 |
|
|
|
|
|
|
| 1,462 |
|
|
| Operating leases right of use asset |
|
|
|
|
| 42,027 |
|
|
|
|
|
|
| 25,582 |
|
|
| Other assets |
|
|
|
|
| 8,487 |
|
|
|
|
|
|
| 8,527 |
|
|
| Total assets |
|
|
| $ |
| 876,457 |
|
|
|
|
| $ |
| 851,342 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
| Current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
| Current maturities of long-term debt |
|
|
| $ |
| 5,060 |
|
|
|
|
| $ |
| 4,903 |
|
|
| Accounts payable and accrued expenses |
|
|
|
|
| 240,994 |
|
|
|
|
|
|
| 212,655 |
|
|
| Operating lease liabilities |
|
|
|
|
| 5,406 |
|
|
|
|
|
|
| 7,304 |
|
|
| Total current liabilities |
|
|
|
|
| 251,460 |
|
|
|
|
|
|
| 224,862 |
|
|
| Long-term debt, less current maturities, net of unamortized debt issuance costs |
|
|
|
|
| 207,817 |
|
|
|
|
|
|
| 207,416 |
|
|
| Long-term operating lease liabilities |
|
|
|
|
| 39,363 |
|
|
|
|
|
|
| 20,988 |
|
|
| Other long-term liabilities |
|
|
|
|
| 29,283 |
|
|
|
|
|
|
| 72,930 |
|
|
| Deferred income taxes |
|
|
|
|
| 70,064 |
|
|
|
|
|
|
| 68,220 |
|
|
| Total liabilities |
|
|
|
|
| 597,987 |
|
|
|
|
|
|
| 594,416 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stockholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
| Class A common stock |
|
|
|
|
| 6 |
|
|
|
|
|
|
| 6 |
|
|
| Class B common stock |
|
|
|
|
| 2 |
|
|
|
|
|
|
| 2 |
|
|
| Class U common stock |
|
|
|
|
| 1 |
|
|
|
|
|
|
| 1 |
|
|
| Additional paid-in capital |
|
|
|
|
| 770,639 |
|
|
|
|
|
|
| 780,388 |
|
|
| Accumulated deficit |
|
|
|
|
| (502,747 |
| ) |
|
|
|
|
| (522,494 |
| ) |
| Accumulated other comprehensive income (loss) |
|
|
|
|
| (2,025 |
| ) |
|
|
|
|
| (977 |
| ) |
| Total stockholders' equity |
|
|
|
|
| 265,876 |
|
|
|
|
|
|
| 256,926 |
|
|
| Noncontrolling interest |
|
|
|
|
| 12,594 |
|
|
|
|
|
|
| - |
|
|
| Total equity |
|
|
|
|
| 278,470 |
|
|
|
|
|
|
| 256,926 |
|
|
| Total liabilities and equity |
|
|
| $ |
| 876,457 |
|
|
|
|
| $ |
| 851,342 |
|
|
| Entravision Communications Corporation Consolidated Statements of Cash Flows (In thousands; unaudited) |
|
|
|
|
| Three-Month Period |
|
|
|
|
| Nine-Month Period |
|
|
|
|
|
|
| Ended September 30, |
|
|
|
|
| Ended September 30, |
|
|
|
|
|
|
| 2022 |
|
|
|
|
| 2021 |
|
|
|
|
| 2022 |
|
|
|
|
| 2021 |
|
|
| Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) |
|
|
| $ |
| 9,090 |
|
|
|
|
| $ |
| 13,884 |
|
|
|
|
| $ |
| 19,444 |
|
|
|
|
| $ |
| 31,362 |
|
|
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation and amortization |
|
|
|
|
| 6,554 |
|
|
|
|
|
|
| 5,901 |
|
|
|
|
|
|
| 19,212 |
|
|
|
|
|
|
| 16,159 |
|
|
| Impairment charge |
|
|
|
|
| - |
|
|
|
|
|
|
| 166 |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| 1,604 |
|
|
| Deferred income taxes |
|
|
|
|
| 62 |
|
|
|
|
|
|
| 4,649 |
|
|
|
|
|
|
| (3,151 |
| ) |
|
|
|
|
| 8,348 |
|
|
| Non-cash interest |
|
|
|
|
| 365 |
|
|
|
|
|
|
| 153 |
|
|
|
|
|
|
| 1,076 |
|
|
|
|
|
|
| 451 |
|
|
| Amortization of syndication contracts |
|
|
|
|
| 117 |
|
|
|
|
|
|
| 119 |
|
|
|
|
|
|
| 348 |
|
|
|
|
|
|
| 357 |
|
|
| Payments on syndication contracts |
|
|
|
|
| (70 |
| ) |
|
|
|
|
| (115 |
| ) |
|
|
|
|
| (304 |
| ) |
|
|
|
|
| (354 |
| ) |
| Non-cash stock-based compensation |
|
|
|
|
| 2,786 |
|
|
|
|
|
|
| 1,094 |
|
|
|
|
|
|
| 7,995 |
|
|
|
|
|
|
| 3,300 |
|
|
| (Gain) loss on marketable securities |
|
|
|
|
| 473 |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| 473 |
|
|
|
|
|
|
| - |
|
|
| (Gain) loss on disposal of property and equipment |
|
|
|
|
| 39 |
|
|
|
|
|
|
| (2,622 |
| ) |
|
|
|
|
| (599 |
| ) |
|
|
|
|
| (2,622 |
| ) |
| Change in fair value of contingent consideration |
|
|
|
|
| 734 |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| 6,810 |
|
|
|
|
|
|
| - |
|
|
| Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Increase) decrease in accounts receivable |
|
|
|
|
| 4,708 |
|
|
|
|
|
|
| (16,361 |
| ) |
|
|
|
|
| 22,296 |
|
|
|
|
|
|
| (15,894 |
| ) |
| (Increase) decrease in prepaid expenses and other assets |
|
|
|
|
| 1,069 |
|
|
|
|
|
|
| (642 |
| ) |
|
|
|
|
| (183 |
| ) |
|
|
|
|
| 2,267 |
|
|
| Increase (decrease) in accounts payable, accrued expenses and other liabilities |
|
|
|
|
| (10,691 |
| ) |
|
|
|
|
| 3,169 |
|
|
|
|
|
|
| 4,725 |
|
|
|
|
|
|
| 8,802 |
|
|
| Net cash provided by operating activities |
|
|
|
|
| 15,236 |
|
|
|
|
|
|
| 9,395 |
|
|
|
|
|
|
| 78,142 |
|
|
|
|
|
|
| 53,780 |
|
|
| Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Proceeds from sale of property and equipment and intangibles |
|
|
|
|
| - |
|
|
|
|
|
|
| 9,431 |
|
|
|
|
|
|
| 2,671 |
|
|
|
|
|
|
| 9,431 |
|
|
| Purchases of property and equipment |
|
|
|
|
| (4,673 |
| ) |
|
|
|
|
| (1,433 |
| ) |
|
|
|
|
| (7,882 |
| ) |
|
|
|
|
| (4,269 |
| ) |
| Purchase of a businesses, net of cash acquired |
|
|
|
|
| - |
|
|
|
|
|
|
| (12,847 |
| ) |
|
|
|
|
| - |
|
|
|
|
|
|
| (12,847 |
| ) |
| Investment in variable interest entities, net of cash consolidated |
|
|
|
|
| (5,164 |
| ) |
|
|
|
|
| - |
|
|
|
|
|
|
| (5,164 |
| ) |
|
|
|
|
| - |
|
|
| Purchases of marketable securities |
|
|
|
|
| (5,241 |
| ) |
|
|
|
|
| - |
|
|
|
|
|
|
| (92,480 |
| ) |
|
|
|
|
| - |
|
|
| Proceeds from marketable securities |
|
|
|
|
| 36,369 |
|
|
|
|
|
|
| 10,000 |
|
|
|
|
|
|
| 46,868 |
|
|
|
|
|
|
| 27,800 |
|
|
| Purchases of investments |
|
|
|
|
| - |
|
|
|
|
|
|
| (800 |
| ) |
|
|
|
|
| - |
|
|
|
|
|
|
| (800 |
| ) |
| Net cash provided by (used in) investing activities |
|
|
|
|
| 21,291 |
|
|
|
|
|
|
| 4,351 |
|
|
|
|
|
|
| (55,987 |
| ) |
|
|
|
|
| 19,315 |
|
|
| Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Proceeds from stock option exercises |
|
|
|
|
| - |
|
|
|
|
|
|
| 242 |
|
|
|
|
|
|
| 218 |
|
|
|
|
|
|
| 414 |
|
|
| Tax payments related to shares withheld for share-based compensation plans |
|
|
|
|
| - |
|
|
|
|
|
|
| (70 |
| ) |
|
|
|
|
| (267 |
| ) |
|
|
|
|
| (528 |
| ) |
| Payments on long-term debt |
|
|
|
|
| (1,001 |
| ) |
|
|
|
|
| (750 |
| ) |
|
|
|
|
| (2,501 |
| ) |
|
|
|
|
| (2,250 |
| ) |
| Dividends paid |
|
|
|
|
| (2,124 |
| ) |
|
|
|
|
| (2,136 |
| ) |
|
|
|
|
| (6,415 |
| ) |
|
|
|
|
| (6,395 |
| ) |
| Repurchase of Class A common stock |
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| (11,280 |
| ) |
|
|
|
|
| - |
|
|
| Payment of contingent consideration |
|
|
|
|
| (21,734 |
| ) |
|
|
|
|
| - |
|
|
|
|
|
|
| (65,340 |
| ) |
|
|
|
|
| - |
|
|
| Principal payments under finance lease obligation |
|
|
|
|
| (33 |
| ) |
|
|
|
|
| - |
|
|
|
|
|
|
| (72 |
| ) |
|
|
|
|
| - |
|
|
| Payments of capitalized debt costs |
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| (604 |
| ) |
| Net cash used in financing activities |
|
|
|
|
| (24,892 |
| ) |
|
|
|
|
| (2,714 |
| ) |
|
|
|
|
| (85,657 |
| ) |
|
|
|
|
| (9,363 |
| ) |
| Effect of exchange rates on cash, cash equivalents and restricted cash |
|
|
|
|
| 5 |
|
|
|
|
|
|
| (3 |
| ) |
|
|
|
|
| (1 |
| ) |
|
|
|
|
| (3 |
| ) |
| Net increase (decrease) in cash, cash equivalents and restricted cash |
|
|
|
|
| 11,640 |
|
|
|
|
|
|
| 11,029 |
|
|
|
|
|
|
| (63,503 |
| ) |
|
|
|
|
| 63,729 |
|
|
| Cash, cash equivalents and restricted cash: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning |
|
|
|
|
| 110,700 |
|
|
|
|
|
|
| 172,611 |
|
|
|
|
|
|
| 185,843 |
|
|
|
|
|
|
| 119,911 |
|
|
| Ending |
|
|
| $ |
| 122,340 |
|
|
|
|
| $ |
| 183,640 |
|
|
|
|
| $ |
| 122,340 |
|
|
|
|
| $ |
| 183,640 |
|
|
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, |
|
|
|
|
|
|
| 2022 |
|
|
|
|
| 2021 |
|
|
|
|
| 2022 |
|
|
|
|
| 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated adjusted EBITDA (1) |
|
|
| $ |
| 25,972 |
|
|
|
|
| $ |
| 23,195 |
|
|
|
|
| $ |
| 66,566 |
|
|
|
|
| $ |
| 55,177 |
|
|
| EBITDA attributable to redeemable noncontrolling interest |
|
|
|
|
| - |
|
|
|
|
|
|
| 2,036 |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| 9,127 |
|
|
| EBITDA attributable to noncontrolling interest |
|
|
|
|
| (5 |
| ) |
|
|
|
|
| - |
|
|
|
|
|
|
| (5 |
| ) |
|
|
|
|
| - |
|
|
| Interest expense |
|
|
|
|
| (3,055 |
| ) |
|
|
|
|
| (1,714 |
| ) |
|
|
|
|
| (7,225 |
| ) |
|
|
|
|
| (5,287 |
| ) |
| Interest income |
|
|
|
|
| 788 |
|
|
|
|
|
|
| 12 |
|
|
|
|
|
|
| 1,916 |
|
|
|
|
|
|
| 235 |
|
|
| Dividend income |
|
|
|
|
| 6 |
|
|
|
|
|
|
| 207 |
|
|
|
|
|
|
| 20 |
|
|
|
|
|
|
| 211 |
|
|
| Realized gain (loss) on marketable securities |
|
|
|
|
| (473 |
| ) |
|
|
|
|
| - |
|
|
|
|
|
|
| (473 |
| ) |
|
|
|
|
| - |
|
|
| Income tax expense |
|
|
|
|
| (4,080 |
| ) |
|
|
|
|
| (5,118 |
| ) |
|
|
|
|
| (8,305 |
| ) |
|
|
|
|
| (11,902 |
| ) |
| Amortization of syndication contracts |
|
|
|
|
| (117 |
| ) |
|
|
|
|
| (119 |
| ) |
|
|
|
|
| (348 |
| ) |
|
|
|
|
| (357 |
| ) |
| Payments on syndication contracts |
|
|
|
|
| 70 |
|
|
|
|
|
|
| 115 |
|
|
|
|
|
|
| 304 |
|
|
|
|
|
|
| 354 |
|
|
| Non-cash stock-based compensation included in direct operating expenses |
|
|
|
|
| (981 |
| ) |
|
|
|
|
| (321 |
| ) |
|
|
|
|
| (2,878 |
| ) |
|
|
|
|
| (971 |
| ) |
| Non-cash stock-based compensation included in corporate expenses |
|
|
|
|
| (1,805 |
| ) |
|
|
|
|
| (773 |
| ) |
|
|
|
|
| (5,117 |
| ) |
|
|
|
|
| (2,329 |
| ) |
| Depreciation and amortization |
|
|
|
|
| (6,554 |
| ) |
|
|
|
|
| (5,901 |
| ) |
|
|
|
|
| (19,212 |
| ) |
|
|
|
|
| (16,159 |
| ) |
| Change in fair value of contingent consideration |
|
|
|
|
| (734 |
| ) |
|
|
|
|
| - |
|
|
|
|
|
|
| (6,810 |
| ) |
|
|
|
|
| - |
|
|
| Impairment charge |
|
|
|
|
| - |
|
|
|
|
|
|
| (166 |
| ) |
|
|
|
|
| - |
|
|
|
|
|
|
| (1,604 |
| ) |
| Other operating gain (loss) |
|
|
|
|
| 58 |
|
|
|
|
|
|
| 2,431 |
|
|
|
|
|
|
| 1,011 |
|
|
|
|
|
|
| 4,867 |
|
|
| Net (income) loss attributable to redeemable noncontrolling interest |
|
|
|
|
| - |
|
|
|
|
|
|
| (1,753 |
| ) |
|
|
|
|
| - |
|
|
|
|
|
|
| (5,938 |
| ) |
| Net (income) loss attributable to noncontrolling interest |
|
|
|
|
| 303 |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| 303 |
|
|
|
|
|
|
| - |
|
|
| Net income (loss) attributable to common stockholders |
|
|
|
|
| 9,393 |
|
|
|
|
|
|
| 12,131 |
|
|
|
|
|
|
| 19,747 |
|
|
|
|
|
|
| 25,424 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation and amortization |
|
|
|
|
| 6,554 |
|
|
|
|
|
|
| 5,901 |
|
|
|
|
|
|
| 19,212 |
|
|
|
|
|
|
| 16,159 |
|
|
| Impairment charge |
|
|
|
|
| - |
|
|
|
|
|
|
| 166 |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| 1,604 |
|
|
| Deferred income taxes |
|
|
|
|
| 62 |
|
|
|
|
|
|
| 4,649 |
|
|
|
|
|
|
| (3,151 |
| ) |
|
|
|
|
| 8,348 |
|
|
| Non-cash interest |
|
|
|
|
| 365 |
|
|
|
|
|
|
| 153 |
|
|
|
|
|
|
| 1,076 |
|
|
|
|
|
|
| 451 |
|
|
| Amortization of syndication contracts |
|
|
|
|
| 117 |
|
|
|
|
|
|
| 119 |
|
|
|
|
|
|
| 348 |
|
|
|
|
|
|
| 357 |
|
|
| Payments on syndication contracts |
|
|
|
|
| (70 |
| ) |
|
|
|
|
| (115 |
| ) |
|
|
|
|
| (304 |
| ) |
|
|
|
|
| (354 |
| ) |
| Non-cash stock-based compensation |
|
|
|
|
| 2,786 |
|
|
|
|
|
|
| 1,094 |
|
|
|
|
|
|
| 7,995 |
|
|
|
|
|
|
| 3,300 |
|
|
| Realized (gain) loss on marketable securities |
|
|
|
|
| 473 |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| 473 |
|
|
|
|
|
|
| - |
|
|
| (Gain) loss on disposal of property and equipment |
|
|
|
|
| 39 |
|
|
|
|
|
|
| (2,622 |
| ) |
|
|
|
|
| (599 |
| ) |
|
|
|
|
| (2,622 |
| ) |
| Change in fair value of contingent consideration |
|
|
|
|
| 734 |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| 6,810 |
|
|
|
|
|
|
| - |
|
|
| Net income (loss) attributable to redeemable noncontrolling interest |
|
|
|
|
| - |
|
|
|
|
|
|
| 1,753 |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| 5,938 |
|
|
| Net income (loss) attributable to noncontrolling interest |
|
|
|
|
| (303 |
| ) |
|
|
|
|
| - |
|
|
|
|
|
|
| (303 |
| ) |
|
|
|
|
| - |
|
|
| Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Increase) decrease in accounts receivable |
|
|
|
|
| 4,708 |
|
|
|
|
|
|
| (16,361 |
| ) |
|
|
|
|
| 22,296 |
|
|
|
|
|
|
| (15,894 |
| ) |
| (Increase) decrease in prepaid expenses and other assets |
|
|
|
|
| 1,069 |
|
|
|
|
|
|
| (642 |
| ) |
|
|
|
|
| (183 |
| ) |
|
|
|
|
| 2,267 |
|
|
| Increase (decrease) in accounts payable, accrued expenses and other liabilities |
|
|
|
|
| (10,691 |
| ) |
|
|
|
|
| 3,169 |
|
|
|
|
|
|
| 4,725 |
|
|
|
|
|
|
| 8,802 |
|
|
| Cash flows from operating activities |
|
|
|
|
| 15,236 |
|
|
|
|
|
|
| 9,395 |
|
|
|
|
|
|
| 78,142 |
|
|
|
|
|
|
| 53,780 |
|
|
| (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, |
|
|
|
|
|
|
| 2022 |
|
|
|
|
| 2021 |
|
|
|
|
| 2022 |
|
|
|
|
| 2021 |
|
|
| Consolidated adjusted EBITDA (1) |
|
|
| $ |
| 25,972 |
|
|
|
|
| $ |
| 23,195 |
|
|
|
|
| $ |
| 66,566 |
|
|
|
|
| $ |
| 55,177 |
|
|
| Net interest expense (1) |
|
|
|
|
| (1,902 |
| ) |
|
|
|
|
| (1,549 |
| ) |
|
|
|
|
| (4,233 |
| ) |
|
|
|
|
| (4,601 |
| ) |
| Dividend income |
|
|
|
|
| 6 |
|
|
|
|
|
|
| 207 |
|
|
|
|
|
|
| 20 |
|
|
|
|
|
|
| 211 |
|
|
| Cash paid for income taxes |
|
|
|
|
| (4,018 |
| ) |
|
|
|
|
| (469 |
| ) |
|
|
|
|
| (11,456 |
| ) |
|
|
|
|
| (3,554 |
| ) |
| Capital expenditures (2) |
|
|
|
|
| (4,673 |
| ) |
|
|
|
|
| (1,433 |
| ) |
|
|
|
|
| (7,882 |
| ) |
|
|
|
|
| (4,269 |
| ) |
| Other operating gain (loss) |
|
|
|
|
| 58 |
|
|
|
|
|
|
| 2,431 |
|
|
|
|
|
|
| 1,011 |
|
|
|
|
|
|
| 4,867 |
|
|
| Free cash flow (1) |
|
|
|
|
| 15,443 |
|
|
|
|
|
|
| 22,382 |
|
|
|
|
|
|
| 44,026 |
|
|
|
|
|
|
| 47,831 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capital expenditures (2) |
|
|
|
|
| 4,673 |
|
|
|
|
|
|
| 1,433 |
|
|
|
|
|
|
| 7,882 |
|
|
|
|
|
|
| 4,269 |
|
|
| EBITDA attributable to redeemable noncontrolling interest |
|
|
|
|
| - |
|
|
|
|
|
|
| 2,036 |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| 9,127 |
|
|
| EBITDA attributable to noncontrolling interest |
|
|
|
|
| (5 |
| ) |
|
|
|
|
| - |
|
|
|
|
|
|
| (5 |
| ) |
|
|
|
|
| - |
|
|
| (Gain) loss on disposal of property and equipment |
|
|
|
|
| 39 |
|
|
|
|
|
|
| (2,622 |
| ) |
|
|
|
|
| (599 |
| ) |
|
|
|
|
| (2,622 |
| ) |
| Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Increase) decrease in accounts receivable |
|
|
|
|
| 4,708 |
|
|
|
|
|
|
| (16,361 |
| ) |
|
|
|
|
| 22,296 |
|
|
|
|
|
|
| (15,894 |
| ) |
| (Increase) decrease in prepaid expenses and other assets |
|
|
|
|
| 1,069 |
|
|
|
|
|
|
| (642 |
| ) |
|
|
|
|
| (183 |
| ) |
|
|
|
|
| 2,267 |
|
|
| Increase (decrease) in accounts payable, accrued expenses and other liabilities |
|
|
|
|
| (10,691 |
| ) |
|
|
|
|
| 3,169 |
|
|
|
|
|
|
| 4,725 |
|
|
|
|
|
|
| 8,802 |
|
|
| Cash Flows From Operating Activities |
|
|
| $ |
| 15,236 |
|
|
|
|
| $ |
| 9,395 |
|
|
|
|
| $ |
| 78,142 |
|
|
|
|
| $ |
| 53,780 |
|
|
| (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. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20221103005507/en/
Christopher T. Young
Chief Financial Officer
Entravision Communications Corporation
310-447-3870
Kimberly Esterkin
ADDO Investor Relations
310-829-5400
evc@addo.com