Webcast

First Quarter 2020 Earnings Conference Call
Thursday, May 07, 2020
5:00 PM ET

Press Release

Entravision Communications Corporation Reports Fourth Quarter And Full Year 2019 Results

- Announces Quarterly Cash Dividend of $0.05 Per Share -

Company Release - 3/5/2020 4:10 PM ET

SANTA MONICA, Calif., March 5, 2020 /PRNewswire/ -- Entravision Communications Corporation (NYSE: EVC) today reported financial results for the three- and twelve-month periods ended December 31, 2019.

Historical results, which are attached, are in thousands of U.S. dollars (except share and per share data). 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 11. Unaudited financial highlights are as follows:



Three Months Ended



Twelve Months Ended




December 31,



December 31,




2019



2018



% Change



2019



2018



% Change


Net revenue


$

70,838



$

82,073




(14)

%


$

273,575



$

297,815




(8)

%

Cost of revenue - digital media (1)



10,314




9,847




5

%



36,757




45,096




(18)

%

Operating expenses (2)



44,169




44,568




(1)

%



173,377




176,777




(2)

%

Corporate expenses (3)



7,887




7,711




2

%



28,067




26,865




4

%

Foreign currency (gain) loss



(223)




1,085



*




754




1,616




(53)

%


























Consolidated adjusted EBITDA (4)



11,056




20,936




(47)

%



41,209




54,038




(24)

%


























Free cash flow (5)


$

4,813



$

12,237




(61)

%


$

8,292



$

25,001




(67)

%


























Net income (loss)


$

7,360



$

6,913




6

%


$

(19,712)



$

12,161



*



























Net income (loss) per share, basic


$

0.09



$

0.08




13

%


$

(0.23)



$

0.14



*


Net income (loss) per share, diluted


$

0.09



$

0.08




13

%


$

(0.23)



$

0.13



*



























Weighted average common shares
outstanding, basic



84,226,135




88,357,076








85,107,301




89,115,997






Weighted average common shares
outstanding, diluted



85,449,374




89,598,683








86,224,517




90,328,583







(1)

Cost of revenue – digital media 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)

For purposes of presentation in this table, the operating expenses line item includes direct operating and selling, general and administrative expenses. Included in operating expenses are $0.4 million and $0.3 million of non-cash stock-based compensation for the three-month periods ended December 31, 2019 and 2018, respectively, and $0.7 million of non-cash stock-based compensation for each of the twelve-month periods ended December 31, 2019 and 2018. Also for purposes of presentation in this table, the operating expenses line item does not include corporate expenses, foreign currency (gain) loss, depreciation and amortization, impairment charge, gain (loss) on sale of assets, gain (loss) on debt extinguishment, other income (loss) and change in fair value of contingent consideration.



(3)

Corporate expenses include $1.5 million and $1.8 million of non-cash stock-based compensation for the three-month periods ended December 31, 2019 and 2018, respectively, and $3.6 million and $5.1 million of non-cash stock-based compensation for the twelve-month periods ended December 31, 2019 and 2018, 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 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 the Federal Communications Commission, or FCC, spectrum incentive auction less related expenses, expenses associated with investments, acquisitions and dispositions and certain pro-forma cost savings. We use the term consolidated adjusted EBITDA because that measure is defined in 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, 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, FCC reimbursement for broadcast television repack and revenue from FCC auction for broadcast spectrum less related cash expenses. Net interest expense is defined as interest expense, less non-cash interest expense relating to amortization of debt finance costs, and less interest income.

Commenting on the Company's earnings results, Walter F. Ulloa, Chairman and Chief Executive Officer, said, "Our fourth quarter results were impacted by declines in our television and radio segments compared to the prior year. However, we did achieve growth in our digital segment compared to the fourth quarter of 2018. We continue to maintain a solid balance sheet and return capital to our shareholders through our share repurchase program and dividend. Looking ahead, we remain well positioned to build on our success in further attracting Latino and other audiences worldwide, as we execute our multiplatform strategy to the benefit of our shareholders."

Quarterly Cash Dividend

The Company announced today that its Board of Directors has approved a quarterly cash dividend to shareholders of $0.05 per share of the Company's Class A, Class B and Class U common stock, in an aggregate amount of approximately $4.2 million. The quarterly dividend will be payable on March 31, 2020 to shareholders of record as of the close of business on March 16, 2020, and the common stock will trade ex-dividend on March 13, 2020. As previously announced, 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.

Financial Results


Three-Month Period Ended December 31, 2019 Compared to Three-Month Period Ended December 31, 2018

(Unaudited)




Three Months Ended




December 31,




2019



2018



% Change


Net revenue



70,838




82,073




(14)

%

Cost of revenue - digital media (1)



10,314




9,847




5

%

Operating expenses (1)



44,169




44,568




(1)

%

Corporate expenses (1)



7,887




7,711




2

%

Depreciation and amortization



4,236




4,221




0

%

Change in fair value of contingent consideration



(4,102)




(2,275)




80

%

Impairment charge



654




-



*


Foreign currency (gain) loss



(223)




1,085



*


Other operating (gain) loss



(829)




(565)




47

%














Operating income (loss)



8,732




17,481




(50)

%

Interest expense, net



(2,350)




(3,261)




(28)

%

Dividend income



171




473




(64)

%

Gain (loss) on debt extinguishment



(255)




(550)




(54)

%

Impairment loss on investment



-




(1,320)




(100)

%














Income before income taxes



6,298




12,823




(51)

%

Income tax (expense) benefit



1,107




(4,713)



*















Net income (loss) before equity in net income (loss) of nonconsolidated
affiliates



7,405




8,110




(9)

%

Equity in net income (loss) of nonconsolidated affiliates



(45)




(1,197)




(96)

%

Net income (loss)


$

7,360



$

6,913




6

%


(1)      Cost of revenue, operating expenses and corporate expenses are defined on page 1.

Net revenue decreased to $70.8 million for the three-month period ended December 31, 2019 from $82.1 million for the three-month period ended December 31, 2018, a decrease of $11.3 million. Of the overall decrease, approximately $8.8 million was attributable to our television segment and was primarily due to a decrease in political advertising revenue, which was not material in 2019, and decreases in national and local advertising revenue, as a result primarily of ratings declines, competitive factors with other Spanish-language broadcasters, and changing demographic preferences of audiences. Additionally, as we have previously noted, there is a trend for advertising to move increasingly from traditional media, such as television, to new media, such as digital media, and we expect this trend to continue. In addition, approximately $2.9 million of the overall decrease was attributable to our radio segment and was primarily due to a decrease in political advertising revenue, which was not material in 2019, and decreases in national and local advertising revenue, as a result primarily of ratings declines, competitive factors with other Spanish-language broadcasters, and changing demographic preferences of audiences. Additionally, as we have previously noted, there is a trend for advertising to move increasingly from traditional media, such as radio, to new media, such as digital media, and we expect this trend to continue. This overall decrease was partially offset by an increase of approximately $0.3 million that was attributable to our digital segment.

Cost of revenue in our digital media segment increased to $10.3 million for the three-month period ended December 31, 2019 from $9.8 million for the three-month period ended December 31, 2018, an increase of $0.5 million. The increase was primarily due to the increase in costs associated with the increase in revenue.

Operating expenses decreased to $44.2 million for the three-month period ended December 31, 2019 from $44.6 million for the three-month period ended December 31, 2018, a decrease of $0.4 million. The decrease was primarily due to the decrease in expenses associated with the decrease in revenue and a decrease in salary expense, partially offset by an increase in severance expense in our radio segment.

Corporate expenses increased to $7.9 million for the three-month period December 31, 2019 from $7.7 million for the three-month period ended December 31, 2018, an increase of $0.2 million, primarily due to an increase in legal expense, partially offset by a decrease in non-cash stock-based compensation expense.

Our historical revenues have primarily been denominated in U.S. dollars, and the majority of our current revenues continue to be, and is expected to remain, denominated in U.S. dollars. However, our operating expenses are generally denominated in the currencies of the countries in which our operations are located, and we have operations in countries other than the U.S., primarily related to the Headway business. As a result, we have operating expense, attributable to foreign currency loss, that is primarily related to the operations related to the Headway business. We had a foreign currency gain of $0.2 million for the three-month period December 31, 2019, compared to foreign currency loss of $1.1 million for the three-month period December 31, 2018. Foreign currency gains and losses are primarily due to currency fluctuations that affected our digital segment operations located outside the U.S., primarily related to the Headway business.

Impairment charge related to indefinite life intangible assets in our television and radio reporting units was $0.7 million for the three-month period ended December 31, 2019. 

We recognized an impairment loss on investment of $1.3 million for the three-month period ended December 31, 2018, related to a decrease in value of a cost method investment.

Twelve-month Period Ended December 31, 2019 Compared to Twelve-month Period Ended December 31, 2018

(Unaudited)




Twelve Months Ended




December 31,




2019



2018



% Change


Net revenue



273,575




297,815




(8)

%

Cost of revenue - digital media (1)



36,757




45,096




(18)

%

Operating expenses (1)



173,377




176,777




(2)

%

Corporate expenses (1)



28,067




26,865




4

%

Depreciation and amortization



16,648




16,273




2

%

Change in fair value of contingent consideration



(6,478)




(1,202)




439

%

Impairment charge



32,097




-



*


Foreign currency (gain) loss



754




1,616




(53)

%

Other operating (gain) loss



(5,994)




(1,187)




405

%














Operating income (loss)



(1,653)




33,577




(105)

%

Interest expense, net



(10,330)




(11,770)




(12)

%

Dividend income



918




1,475




(38)

%

Gain (loss) on debt extinguishment



(255)




(550)




(54)

%

Impairment loss on investment



-




(1,320)




(100)

%














Income before income taxes



(11,320)




21,412



*


Income tax (expense) benefit



(8,158)




(7,877)




4

%














Net income (loss) before equity in net income (loss) of nonconsolidated
affiliates



(19,478)




13,535



*


Equity in net income (loss) of nonconsolidated affiliates



(234)




(1,374)




(83)

%














Net income (loss)


$

(19,712)



$

12,161



*



(1)      Cost of revenue, operating expenses and corporate expenses are defined on page 1.

Net revenue decreased to $273.6 million for the year ended December 31, 2019 from $297.8 million for the year ended December 31, 2018, a decrease of approximately $24.2 million. Of the overall decrease, approximately $12.1 million was attributable to our digital segment and was primarily due to declines in both international and domestic revenue.  This decline in digital revenue is being driven by a trend whereby revenue is shifting more to programmatic revenue. In addition, approximately $8.9 million of the overall decrease was attributable to our radio segment and was primarily due to decreases in local and national advertising revenue, as a result primarily of ratings declines, competitive factors with other Spanish-language broadcasters, changing demographic preferences of audiences, the absence of revenue from FIFA World Cup in 2019 compared to 2018, and a decrease in political advertising revenue, which was not material in 2019. Additionally, as we have previously noted, there is a trend for advertising to move increasingly from traditional media, such as radio, to new media, such as digital media, and we expect this trend to continue. Additionally, approximately $3.2 million of the overall decrease was attributable to our television segment and was primarily due to a decrease in political advertising revenue, which was not material in 2019, and decreases in national and local advertising revenue, as a result primarily of ratings declines, competitive factors with other Spanish-language broadcasters, and changing demographic preferences of audiences. Additionally, as we have previously noted, there is a trend for advertising to move increasingly from traditional media, such as television, to new media, such as digital media, and we expect this trend to continue. The overall decrease in our television segment was partially offset by increases in revenue from retransmission consent and spectrum usage rights.

Cost of revenue in our digital media segment decreased to $36.8 million for the year ended December 31, 2019 from $45.1 million for the year ended December 31, 2018, a decrease of $8.3 million, primarily due to a decrease in expenses associated with the decrease in revenue in our digital segment and a strategic shift in our digital business designed to focus on generating revenue with lower associated costs to produce higher margins.

Operating expenses decreased to $173.4 million for the twelve-month period ended December 31, 2019 from $176.8 million for the twelve-month period ended December 31, 2018, a decrease of $3.4 million. Of the overall decrease, approximately $2.7 million was attributable to our radio segment and was primarily due to a decrease in expenses associated with the decrease in advertising revenue, a decrease in bad debt expense and a decrease in salary expense, partially offset by an increase in severance expense. Additionally, $0.8 million of the overall decrease was attributable to our digital media segment and was primarily due to a decrease in expenses associated with the decrease in revenue. The overall decrease was partially offset by an increase of $0.1 attributable to our television segment and was primarily due to an increase in bad debt expense and an increase in advertising expense.

Corporate expenses increased to $28.1 million for the year ended December 31, 2019 from $26.9 million for the year ended December 31, 2018, an increase of $1.2 million. The increase was primarily due to an increase in audit fees that we incurred in 2019 in connection with the audit of our 2018 financial statements, partially offset by a decrease in non-cash stock-based compensation.  

Our historical revenues have primarily been denominated in U.S. dollars, and the majority of our current revenues continue to be, and is expected to remain, denominated in U.S. dollars. However, our operating expenses are generally denominated in the currencies of the countries in which our operations are located, and we have operations in countries other than the U.S., primarily related to the Headway business. As a result, we have operating expense, attributable to foreign currency loss, that is primarily related to the operations related to the Headway business. Foreign currency loss decreased to $0.8 million for the year ended December 31, 2019 from $1.6 million for the year ended December 31, 2018, a decrease of $0.8 million, which was primarily due to currency fluctuations that affected our digital segment operations located outside the U.S., primarily related to the Headway business.

Impairment charge related to goodwill in our digital reporting unit was $27.7 million for the year ended December 31, 2019. Impairment charge related to indefinite life intangible assets in our television and radio reporting units was $4.2 million for the year ended December 31, 2019. These write-downs were made pursuant to Accounting Standards Codification (ASC) 350, Intangibles – Goodwill and Other, which requires that goodwill and certain intangible assets be tested for impairment at least annually, or more frequently if events or changes in circumstances indicate the assets might be impaired. We also recorded an impairment charge of $0.2 million to reflect the fair market value of our assets held for sale.

We recognized an impairment loss on investment of $1.3 million for the year ended December 31, 2018, related to a decrease in value of a cost method investment.

Segment Results


The following represents selected unaudited segment information:




Three Months Ended



Twelve Months Ended




December 31,



December 31,





2019




2018



% Change




2019




2018



% Change


Net Revenue

























Television


$

36,909



$

45,528




(19)

%


$

149,654



$

152,911




(2)

%

Radio



13,909




16,796




(17)

%



55,013




63,922




(14)

%

Digital



20,020




19,749




1

%



68,908




80,982




(15)

%

Total


$

70,838



$

82,073




(14)

%


$

273,575



$

297,815




(8)

%


























Cost of Revenue  (1)

























Digital



10,314




9,847




5

%



36,757




45,096




(18)

%

Total


$

10,314



$

9,847




5

%


$

36,757



$

45,096




(18)

%


























Operating Expenses (1)

























Television



21,726




21,725




0

%



84,416




84,298




0

%

Radio



14,352




13,975




3

%



56,700




59,368




(4)

%

Digital



8,091




8,868




(9)

%



32,261




33,111




(3)

%

Total


$

44,169



$

44,568




(1)

%


$

173,377



$

176,777




(2)

%


























Corporate Expenses (1)


$

7,887



$

7,711




2

%


$

28,067



$

26,865




4

%


























Foreign currency (gain) loss


$

(223)



$

1,085



*



$

754



$

1,616




(53)

%


























Consolidated adjusted EBITDA (1)


$

11,056



$

20,936




(47)

%


$

41,209



$

54,038




(24)

%


(1)          Cost of revenue, operating expenses, corporate expenses, and consolidated adjusted EBITDA are defined on page 1.

Entravision Communications Corporation will hold a conference call to discuss its 2019 fourth quarter results on March 5, 2020 at 5:00 p.m. Eastern Time. To access the conference call, please dial 412-317-5440 ten minutes prior to the start time. The call will be webcast live and archived for replay on the investor relations portion of the Company's web site located at www.entravision.com

Entravision is a diversified global media, marketing and technology company that reaches and engages Latino consumers in the U.S. and other markets primarily including Mexico, Latin America and Spain. Entravision's portfolio includes digital media properties and advertising technology platforms that deliver performance-based solutions and data insights, along with 56 television stations and 49 radio stations. Entravision's digital and technology businesses include Smadex, a leading technology platform providing mobile, programmatic, data and performance digital marketing solutions. Entravision is the largest affiliate group of both the Univision and UniMás television networks, and its Spanish-language radio stations feature its nationally recognized talent. Entravision shares of Class A Common Stock are traded on The New York Stock Exchange under the symbol: EVC. Learn more at: www.entravision.com.

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)




December 31,



December 31,




2019



2018


ASSETS









Current assets









Cash and cash equivalents


$

33,123



$

46,733


Marketable securities



91,662




132,424


Restricted Cash



734




732


Trade receivables, net of allowance for doubtful accounts



71,406




79,308


Assets held for sale



950




1,179


Prepaid expenses and other current assets



11,557




10,672


Total current assets



209,432




271,048


Property and equipment, net



79,642




64,939


Intangible assets subject to amortization, net



16,772




22,598


Intangible assets not subject to amortization



252,544




254,598


Goodwill



46,511




74,292


Operating leases right of use asset



43,837




-


Other assets



7,462




2,934


Total assets


$

656,200



$

690,409




















LIABILITIES AND STOCKHOLDERS' EQUITY









Current liabilities









Current maturities of long-term debt


$

3,000



$

3,000


Accounts payable and accrued expenses



53,931




51,034


Operating lease liabilities



9,056




-


Total current liabilities



65,987




54,034


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



213,024




240,541


Long-term operating lease liabilities



41,387




-


Other long-term liabilities



3,371




16,418


Deferred income taxes



44,259




46,684


Total liabilities



368,028




357,677











Stockholders' equity









Class A common stock



6




6


Class B common stock



2




2


Class U common stock



1




1


Additional paid-in capital



836,170




862,299


Accumulated deficit



(547,876)




(528,164)


Accumulated other comprehensive income (loss)



(131)




(1,412)


Total stockholders' equity



288,172




332,732


Total liabilities and stockholders' equity


$

656,200



$

690,409


 

Entravision Communications Corporation

Consolidated Statements of Operations

(In thousands, except share and per share data)

(Unaudited)




Three-Month Period



Twelve-Month Period




Ended December 31,



Ended December 31,




2019



2018



2019



2018


Net revenue


$

70,838



$

82,073



$

273,575



$

297,815


Expenses:

















Cost of revenue - digital media



10,314




9,847




36,757




45,096


Direct operating expenses



30,020




31,398




119,412




125,242


Selling, general and administrative expenses



14,149




13,170




53,965




51,535


Corporate expenses



7,887




7,711




28,067




26,865


Depreciation and amortization



4,236




4,221




16,648




16,273


Change in fair value of contingent consideration



(4,102)




(2,275)




(6,478)




(1,202)


Impairment charge



654




-




32,097




-


Foreign currency (gain) loss



(223)




1,085




754




1,616


Other operating (gain) loss



(829)




(565)




(5,994)




(1,187)





62,106




64,592




275,228




264,238


Operating income (loss)



8,732




17,481




(1,653)




33,577


Interest expense



(3,102)




(4,349)




(13,683)




(15,743)


Interest income



752




1,088




3,353




3,973


Dividend income



171




473




918




1,475


Gain (loss) on debt extinguishment



(255)




(550)




(255)




(550)


Impairment loss on investment






(1,320)







(1,320)


Income before income taxes



6,298




12,823




(11,320)




21,412


Income tax (expense) benefit



1,107




(4,713)




(8,158)




(7,877)



















Income (loss) before equity in net income (loss) of nonconsolidated
affiliate



7,405




8,110




(19,478)




13,535


Equity in net income (loss) of nonconsolidated affiliate



(45)




(1,197)




(234)




(1,374)


Net income (loss)


$

7,360



$

6,913



$

(19,712)



$

12,161



















Basic and diluted earnings per share:

















Net income (loss) per share, basic


$

0.09



$

0.08



$

(0.23)



$

0.14


Net income (loss) per share, diluted


$

0.09



$

0.08



$

(0.23)



$

0.13



















Cash dividends declared per common share, basic


$

0.05



$

0.05



$

0.20



$

0.20


Cash dividends declared per common share, diluted


$

0.05



$

0.05



$

0.20



$

0.20



















Weighted average common shares outstanding, basic



84,226,135




88,357,076




85,107,301




89,115,997


Weighted average common shares outstanding, diluted



85,449,374




89,598,683




86,224,517




90,328,583


 

Entravision Communications Corporation

Consolidated Statements of Cash Flows

(In thousands; unaudited)




Three-Month Period



Twelve-Month Period




Ended December 31,



Ended December 31,




2019



2018



2019



2018


Cash flows from operating activities:

















Net income (loss)


$

7,360



$

6,913



$

(19,712)



$

12,161


Adjustments to reconcile net income to net cash provided by operating
activities:

















Depreciation and amortization



4,236




4,221




16,648




16,273


Impairment charge



654




-




32,097




-


Impairment loss on investment



-




1,320




-




1,320


Deferred income taxes



(1,630)




2,670




5,311




4,612


Non-cash interest



166




296




881




1,124


Amortization of syndication contracts



131




125




505




651


Payments on syndication contracts



(124)




(127)




(543)




(643)


Equity in net (income) loss of nonconsolidated affiliate



45




1,197




234




1,374


Non-cash stock-based compensation



1,923




2,076




4,377




5,787


(Gain) loss on disposal of property and equipment



-




-




158




-


(Gain) loss on debt extinguishment



255




550




255




550


Changes in assets and liabilities:

















(Increase) decrease in trade receivables, net



(2,093)




(2,683)




8,610




5,895


(Increase) decrease in prepaid expenses and other current assets



2,946




1,629




2,102




(5,581)


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



(5,816)




(6,888)




(19,384)




(9,727)


Net cash provided by operating activities



8,053




11,299




31,539




33,796


Cash flows from investing activities:

















Proceeds from sale of property and equipment and intangibles



-




-




-




33


Purchases of property and equipment



(4,101)




(4,729)




(25,283)




(17,006)


Purchases of intangibles



(2,300)




-




(2,300)




(3,153)


Purchase of a businesses, net of cash acquired



-




-




-




(3,522)


Purchases of marketable securities



-




-




(1,400)




(159,403)


Proceeds from marketable securities



15,766




-




43,647




25,000


Purchases of investments



-




(525)




(300)




(1,495)


Deposits on acquisition



147




-




-




-


Net cash provided by (used in) investing activities



9,512




(5,254)




14,364




(159,546)


Cash flows from financing activities:

















Proceeds from stock option exercises



-




172




-




249


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



(915)




(29)




(1,688)




(2,268)


Payments on long-term debt



(25,750)




(50,750)




(28,000)




(53,000)


Dividends paid



(4,195)




(4,379)




(16,962)




(17,782)


Repurchase of Class A common stock



(2,208)




(6,152)




(12,565)




(13,812)


Payment of contingent consideration



-




-




-




(2,015)


Payments of capitalized debt offering and issuance costs



-




-




(225)




-


Net cash used in financing activities



(33,068)




(61,138)




(59,440)




(88,628)


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



(79)




-




(71)




(11)


Net increase (decrease) in cash and cash equivalents



(15,582)




(55,093)




(13,608)




(214,389)


Cash and cash equivalents:

















Beginning



49,439




102,558




47,465




261,854


Ending


$

33,857



$

47,465



$

33,857



$

47,465


 

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



Twelve-Month Period




Ended December 31,



Ended December 31,





2019




2018




2019




2018


Consolidated adjusted EBITDA (1)


$

11,056



$

20,936



$

41,209



$

54,038


Interest expense



(3,102)




(4,349)




(13,683)




(15,743)


Interest income



752




1,088




3,353




3,973


Gain (loss) on debt extinguishment



(255)




(550)




(255)




(550)


Income tax (expense) benefit



1,107




(4,713)




(8,158)




(7,877)


Amortization of syndication contracts



(131)




(125)




(505)




(651)


Payments on syndication contracts



124




127




543




643


Non-cash stock-based compensation included in direct operating

















 expenses



(408)




(284)




(732)




(732)


Non-cash stock-based compensation included in corporate
expenses



(1,515)




(1,792)




(3,645)




(5,055)


Depreciation and amortization



(4,236)




(4,221)




(16,648)




(16,273)


Change in fair value of contingent consideration



4,102




2,275




6,478




1,202


Non-recurring severance charge



(435)




-




(2,250)




(782)


Dividend income



171




473




918




1,475


Other income (loss)



829




565




5,994




1,187


Impairment charge



(654)




-




(32,097)




-


Impairment loss on investment



-




(1,320)




-




(1,320)


Equity in net income (loss) of nonconsolidated affiliates



(45)




(1,197)




(234)




(1,374)


Net income (loss)



7,360




6,913




(19,712)




12,161



















Depreciation and amortization



4,236




4,221




16,648




16,273


Impairment charge



654




-




32,097




-


Impairment loss on investment



-




1,320




-




1,320


Deferred income taxes



(1,630)




2,670




5,311




4,612


Amortization of debt issuance costs



166




296




881




1,124


Amortization of syndication contracts



131




125




505




651


Payments on syndication contracts



(124)




(127)




(543)




(643)


Equity in net (income) loss of nonconsolidated affiliate



45




1,197




234




1,374


Non-cash stock-based compensation



1,923




2,076




4,377




5,787


(Gain) loss on disposal of property and equipment



-




-




158




-


(Gain) loss on debt extinguishment



255




550




255




550


Changes in assets and liabilities:

















(Increase) decrease in accounts receivable



(2,093)




(2,683)




8,610




5,895


(Increase) decrease in prepaid expenses and other assets



2,946




1,629




2,102




(5,581)


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



(5,816)




(6,888)




(19,384)




(9,727)


Net cash provided by (used in) operating activities


$

8,053



$

11,299



$

31,539



$

33,796



(1)      Consolidated adjusted EBITDA is defined on page 1.

 

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



Twelve-Month Period




Ended December 31,



Ended December 31,





2019




2018




2019




2018


Consolidated adjusted EBITDA (1)


$

11,056



$

20,936



$

41,209



$

54,038


Net, cash interest expense (1)



(2,184)




(2,965)




(9,449)




(10,646)


Dividend income



171




473




918




1,475


Cash paid for income taxes



(523)




(2,043)




(2,847)




(3,265)


Capital expenditures (2)



(4,101)




(4,729)




(25,283)




(17,006)


FCC reimbursement



829




565




5,994




1,187


Non-recurring cash severance charge



(435)




-




(2,250)




(782)


Free cash flow (1)



4,813




12,237




8,292




25,001



















Capital expenditures (2)



4,101




4,729




25,283




17,006


Change in fair value of contingent consideration



4,102




2,275




6,478




1,202


(Gain) loss on disposal of property and equipment



-




-




158




-


Changes in assets and liabilities:

















(Increase) decrease in accounts receivable



(2,093)




(2,683)




8,610




5,895


(Increase) decrease in prepaid expenses and other assets



2,946




1,629




2,102




(5,581)


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



(5,816)




(6,888)




(19,384)




(9,727)


Cash Flows From Operating Activities


$

8,053



$

11,299



$

31,539



$

33,796



(1)          Consolidated adjusted EBITDA, net interest expense, and free cash flow are defined on page 1.


(2)          Capital expenditures are not part of the consolidated statement of operations.

 

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SOURCE Entravision Communications Corporation