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Entravision Communications Corp

Entravision Communications Corporation Reports Third Quarter 2024 Results

New Operating Segments
Double Digit Revenue Growth
Declares Quarterly Cash Dividend of $0.05 Per Share Payable on December 31, 2024

SANTA MONICA, Calif.--(BUSINESS WIRE)--Nov. 6, 2024-- Entravision Communications Corporation (NYSE: EVC), a media and advertising technology company, today announced financial results for the three- and nine-month periods ended September 30, 2024.

"During the third quarter we realigned our operating segments into two segments: Media and Advertising Technology & Services. Our media segment consists of sales of advertising through various media, including television, radio and digital. Our advertising technology & services segment consists of Smadex, our programmatic ad purchasing platform, and Adwake, our mobile growth solutions business," said Michael Christenson, Chief Executive Officer.

Mr. Christenson continued, "Our net revenue from continuing operations increased 25% in the third quarter of 2024 compared to the same quarter in 2023, driven primarily by growth in political advertising revenue and Smadex. Our balance sheet remains strong, and we are focused on providing highly-rated news and content to our audiences, strengthening our digital marketing solutions in combination with our television and radio offerings, and continuing to grow Smadex."

Unaudited Financial Highlights (In thousands, except share and per share data)

 

Three-Month Period

 

Nine-Month Period

 

Ended September 30,

 

Ended September 30,

 

2024

 

2023

 

% Change

 

2024

 

2023

 

% Change

Net revenue

$

97,156

 

 

$

77,420

 

 

 

25

%

 

$

257,986

 

 

$

218,787

 

 

 

18

%

Cost of revenue (1)

 

26,801

 

 

 

21,393

 

 

 

25

%

 

 

73,883

 

 

 

57,910

 

 

 

28

%

Operating expenses (2) (5)

 

52,729

 

 

 

40,648

 

 

 

30

%

 

 

144,983

 

 

 

121,523

 

 

 

19

%

Corporate expenses (3) (5)

 

6,930

 

 

 

13,292

 

 

 

(48

)%

 

 

29,989

 

 

 

35,836

 

 

 

(16

)%

Foreign currency (gain) loss

 

(121

)

 

 

269

 

 

*

 

 

120

 

 

 

1,274

 

 

 

(91

)%

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

$

(10,841

)

 

$

(6,103

)

 

 

78

%

 

$

(14,619

)

 

$

(19,945

)

 

 

(27

)%

Net income (loss) from discontinued operations, net of tax

$

(1,139

)

 

$

8,822

 

 

*

 

$

(77,931

)

 

$

22,716

 

 

*

Net income (loss) attributable to common stockholders

$

(11,980

)

 

$

2,719

 

 

*

 

$

(92,550

)

 

$

2,771

 

 

*

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from operating activities

$

10,851

 

 

$

22,026

 

 

 

(51

)%

 

$

61,922

 

 

$

69,117

 

 

 

(10

)%

Free cash flow (4)

$

9,299

 

 

$

17,003

 

 

 

(45

)%

 

$

55,633

 

 

$

49,236

 

 

 

13

%

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share from continuing operations, basic and diluted

$

(0.12

)

 

$

(0.07

)

 

 

71

%

 

$

(0.16

)

 

$

(0.23

)

 

 

(30

)%

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share from discontinued operations, basic and diluted

$

(0.01

)

 

$

0.10

 

 

*

 

$

(0.87

)

 

$

0.26

 

 

*

 

 

 

 

 

 

 

 

 

 

 

 

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

$

(0.13

)

 

$

0.03

 

 

*

 

$

(1.03

)

 

$

0.03

 

 

*

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic and diluted

 

89,987,110

 

 

 

87,995,567

 

 

 

 

 

89,776,075

 

 

 

87,803,770

 

 

 

(1)

Consists of the costs of online media acquired from third-party publishers. Media cost is classified as cost of revenue in the period in which the corresponding revenue is recognized.

 

(2)

Operating expenses include direct operating and selling, general and administrative expenses. Included in operating expenses are $2.1 million and $2.3 million of non-cash stock-based compensation for the three-month periods ended September 30, 2024 and 2023, respectively, and $5.0 million and $6.0 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2024 and 2023, respectively.

 

(3)

Corporate expenses include $1.6 million and $4.4 million of non-cash stock-based compensation for the three-month periods ended September 30, 2024 and 2023, respectively, and $8.0 million and $9.8 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2024 and 2023, respectively.

 

(4)

Free cash flow is defined as cash flows from operating activities less cash paid for capital expenditures.

 

(5)

Effective July 1, 2024, with the realignment of our operations and reassignment of certain responsibilities, certain costs that were previously included as corporate expenses, primarily salaries, are now included in operating expenses.

Net revenue for the three- and nine-month periods ended September 30, 2024 increased primarily due to an increase in advertising revenue from our media segment, and an increase in advertising revenue from our advertising technology & services segment. The increase was partially offset by decreases in spectrum usage rights revenue and retransmission consent revenue in our media segment.

Cost of revenue for the three- and nine-month periods ended September 30, 2024 increased primarily due to the increase in digital advertising revenue.

Operating expenses for the three- and nine-month periods ended September 30, 2024 increased primarily due to an increase in salaries, primarily associated with the expansion of our news programming in our media segment, and increases in salaries and cloud infrastructure expenses associated with the increase in revenue in our advertising technology & services segment. Additionally, effective July 1, 2024, with the realignment of our operations and reassignment of certain responsibilities, certain costs that were previously included as corporate expenses, primarily salaries, are now included in operating expenses.

Corporate expenses for the three-month period ended September 30, 2024 decreased primarily due to a decrease in salaries and bonus expense, a decrease in non-cash stock-based compensation, a decrease in professional services expense, and a decrease due to the realignment of our operations as noted above. This decrease was partially offset by an increase in audit fees.

Corporate expenses for the nine-month period ended September 30, 2024 decreased primarily due to a decrease in salaries and bonus expense, a decrease in non-cash stock-based compensation, a decrease in professional services expense, and a decrease due to the realignment of our operations as noted above. This decrease was partially offset by an increase in severance expense.

New Operating Segments

Effective July 1, 2024, we have realigned our operating segments into two segments – media and advertising technology & services – consistent with our current operational and management structure. Our media segment consists of sales of advertising through various media, including television, radio and digital. We own and/or operate 49 primary television stations and 44 radio stations (37 FM and 7 AM), reaching and engaging U.S. Latinos. Our advertising technology & services segment consists of programmatic ad services through Smadex, our demand side programmatic ad platform, and Adwake, our mobile growth solutions business.

Quarterly Cash Dividend

The Company announced today that its Board of Directors approved a quarterly cash dividend to shareholders of $0.05 per share on the Company's Class A and Class U common stock, in an aggregate amount of $4.5 million. The quarterly dividend will be payable on December 31, 2024 to shareholders of record as of the close of business on December 16, 2024. The Company currently anticipates that future cash dividends will be paid on a quarterly basis; however, any decision to pay future cash dividends will be subject to approval by the Board.

Non-GAAP Financial Measures

This press release contains certain non-GAAP financial measures as defined by SEC Regulation G. These non-GAAP financial measures include Consolidated EBITDA and Free Cash Flow. The GAAP financial measure most directly comparable to each of these non-GAAP financial measures, and a table reconciling each of these non-GAAP financial measures to its most directly comparable GAAP financial measure is included beginning on page 8.

Consolidated EBITDA

We use the term “consolidated EBITDA” because that term is defined in our 2023 Credit Agreement. Under the terms of our 2023 Credit Agreement, consolidated EBITDA is a measure that governs several critical aspects of our 2023 Credit Facility, including, among other things, financial covenants with which we must comply and financial ratios which we must maintain in order to borrow funds needed for the operation of our business and with respect to the interest rates that we pay on our 2023 Credit Facility. For example, our 2023 Credit Agreement contains a total net leverage ratio financial covenant. The total net leverage ratio, or the ratio of consolidated total debt (net of up to $50.0 million of unrestricted cash) to trailing-twelve-month consolidated EBITDA, affects both our ability to borrow from our Revolving Credit Facility and our applicable margin for the interest rate calculation. Under our 2023 Credit Agreement, our maximum total leverage ratio may not exceed 3.25 to 1.00. In addition, our 2023 Credit Agreement contains an interest coverage ratio financial covenant (calculated as set forth in the 2023 Credit Agreement), with a minimum permitted ratio of 3.00 to 1.00.

Therefore, we believe that it is important to disclose consolidated EBITDA to our investors to understand our compliance with these, and certain other, terms of our 2023 Credit Agreement. While many in the financial community and we consider consolidated EBITDA to be important, it should be considered in addition to, but not as a substitute for or superior to, other measures of financial performance and liquidity prepared in accordance with accounting principles generally accepted in the United States of America, such as operating income (loss), net income (loss) and cash flows from operating activities. Consolidated EBITDA has certain limitations because it excludes and includes several important financial line items as noted above. Therefore, we consider both non-GAAP and GAAP measures when evaluating our business. Consolidated EBITDA is also used to make executive compensation decisions.

We calculate Consolidated EBITDA as net income (loss) plus gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation included in operating and corporate expenses, net interest expense, other operating gain (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from the Federal Communications Commission, or FCC, spectrum incentive auction less related expenses, expenses associated with investments, change in fair value of contingent consideration, non-recurring cash severance and restructuring charge, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings.

Free Cash Flow

We use the term free cash flow as a measure of our liquidity and we believe that it is a useful indicator for potential investors of our ability to implement growth strategies and service our debt. Free cash flow is a non-GAAP measure and should be considered in addition to, but not as a substitute for, information contained in our condensed consolidated statement of cash flows as a measure of liquidity.

We calculate free cash flow as cash flow from operating activities less capital expenditures.

Balance Sheet and Related Metrics

Cash and marketable securities as of September 30, 2024 totaled $93.1 million. Total debt as defined in the Company’s credit agreement was $187.8 million. Net of $50 million of cash and marketable securities, total leverage as defined in the Company’s credit agreement was 3.0 times as of September 30, 2024. Net of total cash and marketable securities, total leverage was 2.0 times.

Consolidated EBITDA, as defined in our 2023 Credit Agreement was $15.1 million and $30.1 million for the three- and nine-month periods ended September 30, 2024.

Unaudited Segment Results (In thousands)

 

Three-Month Period

 

Nine-Month Period

 

Ended September 30,

 

Ended September 30,

 

2024

 

2023

 

% Change

 

2024

 

2023

 

% Change

Net Revenue

 

 

 

 

 

 

 

 

 

 

 

Media

$

59,802

 

$

48,746

 

 

23

%

 

$

154,801

 

$

144,614

 

 

7

%

Advertising Technology & Services

 

37,354

 

 

 

28,674

 

 

 

30

%

 

 

103,185

 

 

 

74,173

 

 

 

39

%

Total

$

97,156

 

 

$

77,420

 

 

 

25

%

 

$

257,986

 

 

$

218,787

 

 

 

18

%

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Revenue (1)

 

 

 

 

 

 

 

 

 

 

 

Media

$

4,881

 

 

$

2,840

 

 

 

72

%

 

$

11,888

 

 

$

7,661

 

 

 

55

%

Advertising Technology & Services

 

21,920

 

 

 

18,553

 

 

 

18

%

 

 

61,995

 

 

 

50,249

 

 

 

23

%

Total

$

26,801

 

 

$

21,393

 

 

 

25

%

 

$

73,883

 

 

$

57,910

 

 

 

28

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses (1)

 

 

 

 

 

 

 

 

 

 

 

Media

 

40,053

 

 

 

32,787

 

 

 

22

%

 

 

113,005

 

 

 

99,043

 

 

 

14

%

Advertising Technology & Services

 

12,676

 

 

 

7,861

 

 

 

61

%

 

 

31,978

 

 

 

22,480

 

 

 

42

%

Total

$

52,729

 

 

$

40,648

 

 

 

30

%

 

$

144,983

 

 

$

121,523

 

 

 

19

%

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Expenses (1)

$

6,930

 

 

$

13,292

 

 

 

(48

)%

 

$

29,989

 

 

$

35,836

 

 

 

(16

)%

(1)

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

Notice of Conference Call

Entravision will hold a conference call to discuss its third quarter 2024 results on Thursday, November 7, 2024 at 5:00 p.m. Eastern Time. To access the conference call, please dial 1-800-717-1738 or 1-646-307-1865 ten minutes prior to the start time. The call will also be available via live webcast on the investor relations portion of the company's website located at www.entravision.com.

About Entravision Communications Corporation

Entravision is a media and advertising technology company. In the U.S., we maintain a diversified portfolio of television and radio stations and digital advertising services that target Latino audiences. Our advertising technology business consists of Smadex, our programmatic ad purchasing platform, and Adwake, our mobile growth solutions business. Entravision remains the largest affiliate group of the Univision and UniMás television networks. Shares of Entravision Class A Common Stock trade on the NYSE under ticker: EVC. Learn more about our offerings at entravision.com or connect with us on LinkedIn and Facebook.

Forward-Looking Statements

This press release contains certain forward-looking statements. These forward-looking statements, which are included in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, may involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this press release. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that actual results will not differ materially from these expectations, and the Company disclaims any duty to update any forward-looking statements made by the Company. From time to time, these risks, uncertainties and other factors are discussed in the Company’s filings with the Securities and Exchange Commission.

Entravision Communications Corporation

Consolidated Statements of Operations

(In thousands, except share and per share data)

(Unaudited)

 

 

 

Three-Month Period

 

Nine-Month Period

 

 

Ended September 30,

 

Ended September 30,

 

 

2024

 

2023

 

2024

 

2023

Net revenue

 

$

97,156

 

 

$

77,420

 

 

$

257,986

 

 

$

218,787

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

Cost of revenue

 

 

26,801

 

 

 

21,393

 

 

 

73,883

 

 

 

57,910

 

Direct operating expenses

 

 

35,617

 

 

 

28,702

 

 

 

99,174

 

 

 

84,160

 

Selling, general and administrative expenses

 

 

17,112

 

 

 

11,946

 

 

 

45,809

 

 

 

37,363

 

Corporate expenses

 

 

6,930

 

 

 

13,292

 

 

 

29,989

 

 

 

35,836

 

Depreciation and amortization

 

 

3,882

 

 

 

4,733

 

 

 

13,049

 

 

 

11,948

 

Change in fair value of contingent consideration

 

 

(650

)

 

 

(100

)

 

 

(630

)

 

 

621

 

Impairment charge

 

 

—

 

 

 

989

 

 

 

—

 

 

 

989

 

Foreign currency (gain) loss

 

 

(121

)

 

 

269

 

 

 

120

 

 

 

1,274

 

 

 

 

89,571

 

 

 

81,224

 

 

 

261,394

 

 

 

230,101

 

Operating income (loss)

 

 

7,585

 

 

 

(3,804

)

 

 

(3,408

)

 

 

(11,314

)

Interest expense

 

 

(4,087

)

 

 

(4,346

)

 

 

(12,648

)

 

 

(12,464

)

Interest income

 

 

646

 

 

 

1,068

 

 

 

1,801

 

 

 

2,396

 

Dividend income

 

 

—

 

 

 

—

 

 

 

10

 

 

 

32

 

Realized gain (loss) on marketable securities

 

 

(1

)

 

 

(33

)

 

 

(110

)

 

 

(94

)

Gain (loss) on debt extinguishment

 

 

—

 

 

 

—

 

 

 

(91

)

 

 

(1,556

)

Income (loss) before income taxes

 

 

4,143

 

 

 

(7,115

)

 

 

(14,446

)

 

 

(23,000

)

Income tax benefit (expense)

 

 

(14,984

)

 

 

1,012

 

 

 

(173

)

 

 

3,055

 

Net income (loss) from continuing operations

 

 

(10,841

)

 

 

(6,103

)

 

 

(14,619

)

 

 

(19,945

)

Net income (loss) from discontinued operations, net of tax

 

 

(1,139

)

 

 

8,822

 

 

 

(77,931

)

 

 

22,716

 

Net income (loss) attributable to common stockholders

 

$

(11,980

)

 

$

2,719

 

 

$

(92,550

)

 

$

2,771

 

 

 

 

 

 

 

 

 

 

Basic and diluted earnings per share:

 

 

 

 

 

 

 

 

Net income (loss) per share from continuing operations, basic and diluted

 

$

(0.12

)

 

$

(0.07

)

 

$

(0.16

)

 

$

(0.23

)

 

 

 

 

 

 

 

 

 

Net income (loss) per share from discontinued operations, basic and diluted

 

$

(0.01

)

 

$

0.10

 

 

$

(0.87

)

 

$

0.26

 

 

 

 

 

 

 

 

 

 

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

 

$

(0.13

)

 

$

0.03

 

 

$

(1.03

)

 

$

0.03

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share, basic and diluted

 

$

0.05

 

 

$

0.05

 

 

$

0.15

 

 

$

0.15

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic and diluted

 

 

89,987,110

 

 

 

87,995,567

 

 

 

89,776,075

 

 

 

87,803,770

 

Entravision Communications Corporation

Consolidated Balance Sheets

(In thousands; unaudited)

 

 

 

September 30,

 

December 31,

 

 

2024

 

2023

ASSETS

 

 

 

 

Current assets

 

 

 

 

Cash and cash equivalents

 

$

90,258

 

 

$

67,398

 

Marketable securities

 

 

2,826

 

 

 

13,172

 

Restricted cash

 

 

783

 

 

 

770

 

Trade receivables, net of allowance for doubtful accounts

 

 

69,758

 

 

 

70,082

 

Assets held for sale

 

 

-

 

 

 

301

 

Prepaid expenses and other current assets

 

 

31,763

 

 

 

16,863

 

Current assets of discontinued operations

 

 

-

 

 

 

217,269

 

Total current assets

 

 

195,388

 

 

 

385,855

 

Property and equipment, net

 

 

61,297

 

 

 

66,932

 

Intangible assets subject to amortization, net

 

 

4,890

 

 

 

7,100

 

Intangible assets not subject to amortization

 

 

195,174

 

 

 

195,174

 

Goodwill

 

 

50,673

 

 

 

50,674

 

Deferred income taxes

 

 

87

 

 

 

265

 

Operating leases right of use asset

 

 

41,742

 

 

 

42,868

 

Other assets

 

 

8,007

 

 

 

21,223

 

Noncurrent assets of discontinued operations

 

 

-

 

 

 

95,855

 

Total assets

 

$

557,258

 

 

$

865,946

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

Current liabilities

 

 

 

 

Current maturities of long-term debt

 

$

-

 

 

$

8,750

 

Accounts payable and accrued expenses

 

 

64,528

 

 

 

47,776

 

Operating lease liabilities

 

 

7,740

 

 

 

6,748

 

Current liabilities of discontinued operations

 

 

-

 

 

 

208,779

 

Total current liabilities

 

 

72,268

 

 

 

272,053

 

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

 

 

186,902

 

 

 

197,884

 

Long-term operating lease liabilities

 

 

43,171

 

 

 

45,178

 

Other long-term liabilities

 

 

4,443

 

 

 

4,624

 

Deferred income taxes

 

 

43,111

 

 

 

46,849

 

Noncurrent liabilities of discontinued operations

 

 

-

 

 

 

33,072

 

Total liabilities

 

 

349,895

 

 

 

599,660

 

 

 

 

 

 

Redeemable noncontrolling interest - discontinued operations

 

 

-

 

 

 

43,758

 

Stockholders' equity

 

 

 

 

Class A common stock

 

 

8

 

 

 

8

 

Class U common stock

 

 

1

 

 

 

1

 

Additional paid-in capital

 

 

820,491

 

 

 

743,246

 

Accumulated deficit

 

 

(612,362

)

 

 

(519,812

)

Accumulated other comprehensive income (loss)

 

 

(775

)

 

 

(915

)

Total stockholders' equity

 

 

207,363

 

 

 

222,528

 

Total liabilities, redeemable noncontrolling interest and equity

 

$

557,258

 

 

$

865,946

 

Entravision Communications Corporation

Consolidated Statements of Cash Flows

(In thousands; unaudited)

 

 

 

Three-Month Period

 

Nine-Month Period

 

 

Ended September 30,

 

Ended September 30,

 

 

2024

 

2023

 

2024

 

2023

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(11,980

)

 

$

2,719

 

 

$

(92,550

)

 

$

2,771

 

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

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

3,882

 

 

 

7,356

 

 

 

17,007

 

 

 

20,336

 

Impairment charge

 

 

—

 

 

 

989

 

 

 

49,438

 

 

 

989

 

Deferred income taxes

 

 

(3,500

)

 

 

(40

)

 

 

(3,286

)

 

 

(169

)

Non-cash interest

 

 

63

 

 

 

85

 

 

 

223

 

 

 

264

 

Amortization of syndication contracts

 

 

112

 

 

 

118

 

 

 

339

 

 

 

358

 

Payments on syndication contracts

 

 

(108

)

 

 

(125

)

 

 

(337

)

 

 

(366

)

Non-cash stock-based compensation

 

 

3,688

 

 

 

7,032

 

 

 

12,422

 

 

 

17,053

 

(Gain) loss on marketable securities

 

 

1

 

 

 

33

 

 

 

110

 

 

 

94

 

(Gain) loss on disposal of property and equipment

 

 

23

 

 

 

(29

)

 

 

206

 

 

 

(11

)

Loss (gain) on the sale of businesses

 

 

125

 

 

 

—

 

 

 

45,139

 

 

 

—

 

(Gain) loss on debt extinguishment

 

 

—

 

 

 

—

 

 

 

91

 

 

 

1,556

 

Change in fair value of contingent consideration

 

 

(650

)

 

 

(5,997

)

 

 

(13,198

)

 

 

(8,939

)

Net income (loss) attributable to redeemable noncontrolling interest - discontinued operations

 

 

—

 

 

 

13

 

 

 

(2,779

)

 

 

1

 

Net income (loss) attributable to noncontrolling interest - discontinued operations

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(342

)

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

(Increase) decrease in accounts receivable

 

 

1,025

 

 

 

(1,219

)

 

 

10,611

 

 

 

16,261

 

(Increase) decrease in prepaid expenses and other current assets, operating leases right of use asset and other assets

 

 

17,662

 

 

 

(3,902

)

 

 

(1,928

)

 

 

(7,199

)

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

 

 

508

 

 

 

14,993

 

 

 

40,414

 

 

 

26,460

 

Net cash provided by operating activities

 

 

10,851

 

 

 

22,026

 

 

 

61,922

 

 

 

69,117

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Proceeds from sale of businesses, net of cash divested

 

 

—

 

 

 

33

 

 

 

(42,967

)

 

 

83

 

Purchases of property and equipment

 

 

(1,552

)

 

 

(5,023

)

 

 

(6,289

)

 

 

(19,881

)

Purchase of a business, net of cash acquired

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(6,930

)

Purchases of marketable securities

 

 

—

 

 

 

(1,183

)

 

 

—

 

 

 

(11,355

)

Proceeds from sale of marketable securities

 

 

362

 

 

 

10,000

 

 

 

10,381

 

 

 

38,093

 

Proceeds from loan receivable

 

 

—

 

 

 

—

 

 

 

10,748

 

 

 

—

 

Purchases of investments

 

 

—

 

 

 

(100

)

 

 

—

 

 

 

(300

)

Issuance of loan receivable

 

 

—

 

 

 

(5,550

)

 

 

—

 

 

 

(13,636

)

Net cash provided by (used in) investing activities

 

 

(1,190

)

 

 

(1,823

)

 

 

(28,127

)

 

 

(13,926

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Proceeds from stock option exercises

 

 

—

 

 

 

—

 

 

 

—

 

 

 

554

 

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

 

 

—

 

 

 

(63

)

 

 

(27

)

 

 

(158

)

Payments on debt

 

 

—

 

 

 

(1,250

)

 

 

(20,275

)

 

 

(214,495

)

Dividends paid

 

 

(4,499

)

 

 

(4,400

)

 

 

(13,471

)

 

 

(13,182

)

Distributions to noncontrolling interest

 

 

—

 

 

 

—

 

 

 

(1,078

)

 

 

(3,380

)

Payment of contingent consideration

 

 

—

 

 

 

(3,403

)

 

 

(14,300

)

 

 

(35,113

)

Principal payments under finance lease obligation

 

 

(36

)

 

 

(37

)

 

 

(110

)

 

 

(113

)

Proceeds from borrowings on debt

 

 

—

 

 

 

1

 

 

 

—

 

 

 

212,420

 

Payments for debt issuance costs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,777

)

Net cash provided by (used in) financing activities

 

 

(4,535

)

 

 

(9,152

)

 

 

(49,261

)

 

 

(55,244

)

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

 

 

—

 

 

 

(3

)

 

 

(2

)

 

 

(2

)

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

 

 

5,126

 

 

 

11,048

 

 

 

(15,468

)

 

 

(55

)

Cash, cash equivalents and restricted cash:

 

 

 

 

 

 

 

 

Beginning

 

 

85,915

 

 

 

100,341

 

 

 

106,509

 

 

 

111,444

 

Ending

 

$

91,041

 

 

$

111,389

 

 

$

91,041

 

 

$

111,389

 

Entravision Communications Corporation

Reconciliation of Consolidated EBITDA to Net income (loss) attributable to common stockholders

(In thousands; unaudited)

 

The most directly comparable GAAP financial measure is net income (loss) attributable to common stockholders. A reconciliation of this non-GAAP measure to net income (loss) attributable to common stockholders for each of the periods presented is as follows:

 

 

 

Three-Month Period

 

Nine-Month Period

 

 

Ended September 30,

 

Ended September 30,

 

 

2024

 

2023

 

2024

 

2023

Net income (loss) attributable to common stockholders

 

$

(11,980

)

 

$

2,719

 

 

$

(92,550

)

 

$

2,771

 

Net income (loss) attributable to redeemable noncontrolling interest - discontinued operations

 

 

—

 

 

 

13

 

 

 

(2,779

)

 

 

1

 

Net income (loss) attributable to noncontrolling interest - discontinued operations

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(342

)

Interest expense

 

 

4,087

 

 

 

4,346

 

 

 

12,648

 

 

 

12,464

 

Interest expense - discontinued operations

 

 

—

 

 

 

108

 

 

 

219

 

 

 

324

 

Interest income

 

 

(646

)

 

 

(1,068

)

 

 

(1,801

)

 

 

(2,396

)

Interest income - discontinued operations

 

 

—

 

 

 

(490

)

 

 

(731

)

 

 

(1,059

)

Dividend income

 

 

—

 

 

 

—

 

 

 

(10

)

 

 

(32

)

Realized gain (loss) on marketable securities

 

 

1

 

 

 

33

 

 

 

110

 

 

 

94

 

(Gain) loss on debt extinguishment

 

 

—

 

 

 

—

 

 

 

91

 

 

 

1,556

 

Income tax expense

 

 

14,984

 

 

 

(1,012

)

 

 

173

 

 

 

(3,055

)

Income tax expense - discontinued operations

 

 

(125

)

 

 

482

 

 

 

(770

)

 

 

2,017

 

Amortization of syndication contracts

 

 

112

 

 

 

118

 

 

 

339

 

 

 

358

 

Payments on syndication contracts

 

 

(108

)

 

 

(125

)

 

 

(337

)

 

 

(366

)

Non-cash stock-based compensation

 

 

3,688

 

 

 

7,032

 

 

 

12,422

 

 

 

17,053

 

Depreciation and amortization

 

 

3,882

 

 

 

4,733

 

 

 

13,049

 

 

 

11,948

 

Depreciation and amortization - discontinued operations

 

 

—

 

 

 

2,623

 

 

 

3,958

 

 

 

8,388

 

Change in fair value of contingent consideration

 

 

(650

)

 

 

(100

)

 

 

(630

)

 

 

621

 

Change in fair value of contingent consideration - discontinued operations

 

 

—

 

 

 

(5,897

)

 

 

(12,568

)

 

 

(9,560

)

Impairment charge

 

 

—

 

 

 

989

 

 

 

—

 

 

 

989

 

Impairment charge - discontinued operations

 

 

—

 

 

 

—

 

 

 

49,438

 

 

 

—

 

Non-recurring cash severance and restructuring charge

 

 

1,722

 

 

 

—

 

 

 

4,849

 

 

 

612

 

Other operating (gain) loss - discontinued operations

 

 

125

 

 

 

—

 

 

 

45,139

 

 

 

—

 

EBITDA attributable to redeemable noncontrolling interest - discontinued operations

 

 

—

 

 

 

(319

)

 

 

(167

)

 

 

(736

)

EBITDA attributable to noncontrolling interest - discontinued operations

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(230

)

Consolidated EBITDA (1)

 

$

15,092

 

 

$

14,185

 

 

$

30,092

 

 

$

41,420

 

(1)

Consolidated EBITDA is defined on page 2.

Entravision Communications Corporation

Reconciliation of Free Cash Flow to Cash Flows From Operating Activities

(In thousands; unaudited)

 

The most directly comparable GAAP financial measure is cash flows from operating activities. A reconciliation of this non-GAAP measure to cash flows from operating activities for each of the periods presented is as follows:

 

 

 

Three-Month Period

 

Nine-Month Period

 

 

Ended September 30,

 

Ended September 30,

 

 

2024

 

2023

 

2024

 

2023

Cash flows from operating activities

 

$

10,851

 

 

$

22,026

 

 

$

61,922

 

 

$

69,117

 

Cash paid for capital expenditures (2)

 

 

(1,552

)

 

 

(5,023

)

 

 

(6,289

)

 

 

(19,881

)

Free cash flow (1)

 

$

9,299

 

 

$

17,003

 

 

$

55,633

 

 

$

49,236

 

(1)

Free cash flow is defined on page 2.

 

(2)

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

 

For more information, please contact:

Mark Boelke
Chief Financial Officer
Entravision
310-447-3870
ir@entravision.com

Roy Nir
VP, Financial Reporting and Investor Relations
Entravision
310-447-3870
ir@entravision.com

Source: Entravision