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Entravision Communications Corporation Reports Second Quarter 2021 Results

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Entravision Communications Corporation Reports Second Quarter 2021 Results

 

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

Second Quarter 2021 Highlights

  • Net revenue up 295% over the prior-year period
  • Net income attributable to common stockholders up 236% over the prior-year period
  • Consolidated Adjusted EBITDA up 932% over the prior-year period
  • Operating cash flow up 181% over the prior-year period
  • Free cash flow of $12.4 million compared to a loss of $1.4 million in the prior-year period
  • Quarterly cash dividend of $0.025 per share

“Entravision had a strong second quarter of 2021 and an even stronger first half of the year. Net revenues for the second quarter improved 295% as compared to the prior-year period, while Adjusted EBITDA increased 932% year-over-year,” said Walter F. Ulloa, Chairman and Chief Executive Officer. “Growth in the quarter was largely driven by our digital business, which is now our largest segment, currently at 73% of consolidated revenues. Our core television and audio businesses also saw sequential and year-over-year revenue improvements, bolstering our overall performance.”

Mr. Ulloa continued, “Our digital segment continues to represent a significant part of the growth of our business. Right after the end of the second quarter we acquired MediaDonuts, a company engaged in the sale and marketing of digital advertising in Southeast Asia. Through the acquisition of MediaDonuts, along with our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, we have now added two digital powerhouses to our platform whose combined leadership, sales, operations and geographic reach further propel our core digital offerings and position us to partner with the world’s leading technology and social platforms.”

Quarterly Cash Dividend

The Company also announced today that its Board of Directors approved a quarterly cash dividend to shareholders of $0.025 per share on the Company’s Class A, Class B and Class U common stock, in an aggregate amount of approximately $2.1 million. The quarterly dividend will be payable on September 30, 2021 to shareholders of record as of the close of business on September 15, 2021, and the common stock will trade ex-dividend on September 14, 2021. The Company currently anticipates that future cash dividends will be paid on a quarterly basis; however, any decision to pay future cash dividends will be subject to approval by the Board.

Non-GAAP Financial Measures

This press release contains certain non-GAAP financial measures as defined by SEC Regulation G. The GAAP financial measure most directly comparable to each of these non-GAAP financial measures, and a table reconciling each of these non-GAAP financial measures to its most directly comparable GAAP financial measure is included beginning on page 10.

Unaudited Financial Highlights

 

Three-Month Period

 

 

Six-Month Period

 

 

Ended June 30,

 

 

Ended June 30,

 

 

2021

 

 

2020

 

 

% Change

 

 

2021

 

 

2020

 

 

% Change

 

Net revenue

$

178,410

 

 

$

45,116

 

 

 

295

%

 

$

327,290

 

 

$

109,365

 

 

 

199

%

Cost of revenue – digital (1)

 

109,030

 

 

 

6,447

 

 

*

 

 

 

193,786

 

 

 

13,794

 

 

*

 

Operating expenses (2)

 

41,442

 

 

 

33,037

 

 

 

25

%

 

 

81,856

 

 

 

73,307

 

 

 

12

%

Corporate expenses (3)

 

7,345

 

 

 

5,384

 

 

 

36

%

 

 

14,503

 

 

 

12,224

 

 

 

19

%

Foreign currency (gain) loss

 

(309

)

 

 

(155

)

 

 

99

%

 

 

277

 

 

 

1,353

 

 

 

(80

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated adjusted EBITDA (4)

 

17,787

 

 

 

1,724

 

 

 

932

%

 

 

31,982

 

 

 

11,402

 

 

 

180

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Free cash flow (5)

$

12,420

 

 

$

(1,408

)

 

*

 

 

$

25,449

 

 

$

3,821

 

 

 

566

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

10,476

 

 

$

2,338

 

 

 

348

%

 

$

17,478

 

 

$

(33,254

)

 

*

 

Net (income) loss attributable to redeemable noncontrolling interest

$

(2,612

)

 

$

 

 

*

 

 

$

(4,185

)

 

$

 

 

*

 

Net income (loss) attributable to common stockholders

$

7,864

 

 

$

2,338

 

 

 

236

%

 

$

13,293

 

 

$

(33,254

)

 

*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$

0.09

 

 

$

0.03

 

 

 

200

%

 

$

0.16

 

 

$

(0.39

)

 

*

 

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

$

0.09

 

 

$

0.03

 

 

 

200

%

 

$

0.15

 

 

$

(0.39

)

 

*

 

Weighted average common shares outstanding, basic

 

85,188,182

 

 

 

84,123,530

 

 

 

 

 

 

85,115,310

 

 

 

84,220,649

 

 

 

 

Weighted average common shares outstanding, diluted

 

87,777,039

 

 

 

84,669,250

 

 

 

 

 

 

87,382,215

 

 

 

84,220,649

 

 

 

 

(1)

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

(2)

Operating expenses includes direct operating and selling, general and administrative expenses. Included in operating expenses are $0.3 million and $0.1 million of non-cash stock-based compensation for the three-month periods ended June 30, 2021 and 2020, respectively, and $0.6 million and $0.2 million of non-cash stock-based compensation for the six-month periods ended June 30, 2021 and 2020, respectively.

(3)

Corporate expenses include $0.8 million and $0.7 million of non-cash stock-based compensation for the three-month periods ended June 30, 2021 and 2020, respectively, and $1.6 million and $1.4 million of non-cash stock-based compensation for the six-month periods ended June 30, 2021 and 2020, respectively.

(4)

Consolidated adjusted EBITDA means net income (loss) plus gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation included in operating and corporate expenses, net interest expense, other operating gain (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from the Federal Communications Commission, or FCC, spectrum incentive auction less related expenses, expenses associated with investments, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings. We use the term consolidated adjusted EBITDA because that measure is defined in the agreement governing our current credit facility (“the 2017 Credit Facility”) and does not include gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation, net interest expense, other income (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from FCC spectrum incentive auction less related expenses, expenses associated with investments, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings.

(5)

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

Unaudited Financial Results

 

Three-Month Period

 

 

Ended June 30,

 

 

2021

 

 

2020

 

 

% Change

 

Net revenue

$

178,410

 

 

$

45,116

 

 

 

295

%

Cost of revenue – digital (1)

 

109,030

 

 

 

6,447

 

 

*

 

Operating expenses (1)

 

41,442

 

 

 

33,037

 

 

 

25

%

Corporate expenses (1)

 

7,345

 

 

 

5,384

 

 

 

36

%

Depreciation and amortization

 

5,074

 

 

 

3,873

 

 

 

31

%

Impairment charge

 

112

 

 

 

 

 

*

 

Foreign currency (gain) loss

 

(309

)

 

 

(155

)

 

 

99

%

Other operating (gain) loss

 

(523

)

 

 

(2,030

)

 

 

(74

)%

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

16,239

 

 

 

(1,440

)

 

*

 

Interest expense, net

 

(1,773

)

 

 

(1,485

)

 

 

19

%

Dividend income

 

2

 

 

 

 

 

*

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

14,468

 

 

 

(2,925

)

 

*

 

Income tax benefit (expense)

 

(3,992

)

 

 

5,263

 

 

*

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

10,476

 

 

 

2,338

 

 

 

348

%

Net (income) loss attributable to redeemable noncontrolling interest

 

(2,612

)

 

 

 

 

*

 

Net income (loss) attributable to common stockholders

$

7,864

 

 

$

2,338

 

 

 

236

%

(1)

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

Net revenue in the second quarter of 2021 totaled $178.4 million, up 295% from $45.1 million in the prior-year period. Of the overall increase, approximately $118.8 million was attributable to our digital segment and was primarily due to our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020. In addition, of the overall increase, approximately $7.1 million was attributable to our television segment, primarily due to increases in local and national advertising revenue, partially offset by decreases in political revenue and revenue from spectrum usage rights. Additionally, of the overall increase, approximately $7.3 million was attributable to our radio segment primarily due to increases in local and national advertising revenue, partially offset by a decrease in political revenue.

Cost of revenue in the second quarter of 2021 totaled $109.0 million compared to $6.4 million in the prior-year period. The increase was primarily due to increased costs of revenue associated with the increase in net revenue due to our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020.

Operating expenses in the second quarter of 2021 totaled $41.4 million, up 25% from $33.0 million in the prior-year period. The increase was primarily due to our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, and due to an increase in expenses associated with the increase in advertising revenue, partially offset by decreases in bad debt and salary expense associated with furloughs and layoffs that occurred in 2020.

Corporate expenses in the second quarter of 2021 totaled $7.3 million, up 36% from $5.4 million in the prior-year period. The increase was primarily due to an increase in salaries, audit fees and financial due diligence fees.

 

Six-Month Period

 

 

Ended June 30,

 

 

2021

 

 

2020

 

 

% Change

 

Net revenue

$

327,290

 

 

$

109,365

 

 

 

199

%

Cost of revenue – digital (1)

 

193,786

 

 

 

13,794

 

 

*

 

Operating expenses (1)

 

81,856

 

 

 

73,307

 

 

 

12

%

Corporate expenses (1)

 

14,503

 

 

 

12,224

 

 

 

19

%

Depreciation and amortization

 

10,258

 

 

 

8,385

 

 

 

22

%

Impairment charge

 

1,438

 

 

 

39,835

 

 

 

(96

)%

Foreign currency (gain) loss

 

277

 

 

 

1,353

 

 

 

(80

)%

Other operating (gain) loss

 

(2,436

)

 

 

(2,866

)

 

 

(15

)%

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

27,608

 

 

 

(36,667

)

 

*

 

Interest expense, net

 

(3,350

)

 

 

(3,542

)

 

 

(5

)%

Dividend income

 

4

 

 

 

24

 

 

 

(83

)%

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

24,262

 

 

 

(40,185

)

 

*

 

Income tax benefit (expense)

 

(6,784

)

 

 

6,931

 

 

*

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

17,478

 

 

 

(33,254

)

 

*

 

Net (income) loss attributable to redeemable noncontrolling interest

 

(4,185

)

 

 

 

 

*

 

Net income (loss) attributable to common stockholders

$

13,293

 

 

$

(33,254

)

 

*

 

(1)

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

Net revenue for the six-month period of 2021 totaled $327.3 million, up 199% from $109.4 million in the prior-year period. Of the overall increase, approximately $207.0 million was attributable to our digital segment and was primarily due to our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020. In addition, of the overall increase, approximately $3.9 million was attributable to our television segment, primarily due to increases in local and national advertising revenue, and revenue from spectrum usage rights, partially offset by a decrease in political revenue. Additionally, of the overall increase, approximately $6.9 million was attributable to our radio segment primarily due to increases in local and national advertising revenue, partially offset by a decrease in political revenue.

Cost of revenue for the six-month period of 2021 totaled $193.8 million compared to $13.8 million in the prior-year period. The increase was primarily due to increased costs of revenue associated with the increase in net revenue due to our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020.

Operating expenses for the six-month period of 2021 totaled $81.9 million, up 12% from $73.3 million in the prior-year period. The increase was primarily due to our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, and due to an increase in expenses associated with the increase in advertising revenue, partially offset by decreases in bad debt and salary expense associated with furloughs and layoffs that occurred in 2020.

Corporate expenses for the six-month period of 2021 totaled $14.5 million, up 19% from $12.2 million in the prior-year period. The increase was primarily due to an increase in salaries, audit fees and financial due diligence fees.

Balance Sheet and Related Metrics

Cash and marketable securities as of June 30, 2021 totaled approximately $181.9 million. Total debt was $213.8 million. Net of $75 million of cash and marketable securities, total leverage as defined in the Company’s credit agreement was 1.7 times as of June 30, 2021. Net of total accessible cash and marketable securities, total leverage was 0.7 times.

Unaudited Segment Results

 

Three-Month Period

 

 

Six-Month Period

 

 

Ended June 30,

 

 

Ended June 30,

 

 

2021

 

 

2020

 

 

% Change

 

 

2021

 

 

2020

 

 

% Change

 

Net Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Digital

$

130,223

 

 

$

11,373

 

 

 

1045

%

 

$

231,705

 

 

$

24,704

 

 

 

838

%

Television

 

34,057

 

 

 

26,955

 

 

 

26

%

 

 

70,148

 

 

 

66,154

 

 

 

6

%

Radio

 

14,130

 

 

 

6,788

 

 

 

108

%

 

 

25,437

 

 

 

18,507

 

 

 

37

%

Total

$

178,410

 

 

$

45,116

 

 

 

295

%

 

$

327,290

 

 

$

109,365

 

 

 

199

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Revenue – digital (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Digital

$

109,030

 

 

$

6,447

 

 

*

 

 

$

193,786

 

 

$

13,794

 

 

*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Digital

 

12,027

 

 

 

6,156

 

 

 

95

%

 

 

22,877

 

 

 

13,020

 

 

 

76

%

Television

 

19,516

 

 

 

17,736

 

 

 

10

%

 

 

39,400

 

 

 

39,493

 

 

 

(0

)%

Radio

 

9,899

 

 

 

9,145

 

 

 

8

%

 

 

19,579

 

 

 

20,794

 

 

 

(6

)%

Total

$

41,442

 

 

$

33,037

 

 

 

25

%

 

$

81,856

 

 

$

73,307

 

 

 

12

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Expenses (1)

$

7,345

 

 

$

5,384

 

 

 

36

%

 

$

14,503

 

 

$

12,224

 

 

 

19

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated adjusted EBITDA (1)

$

17,787

 

 

$

1,724

 

 

 

932

%

 

$

31,982

 

 

$

11,402

 

 

 

180

%

(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 second quarter 2021 results on Thursday, August 5, 2021 at 5 p.m. Eastern Time. To access the conference call, please dial (877) 407-9716 (U.S.) or (201) 493-6779 (Int’l) ten minutes prior to the start time and reference Conference ID number 13720020. The call will also be available via live webcast on the investor relations portion of the Company’s website located at www.entravision.com.

About Entravision Communications Corporation

Entravision is a diversified global media, marketing and technology company serving clients throughout the United States and in more than 20 countries across Latin America, Europe, and Southeast Asia. Entravision has 54 television stations and is the largest affiliate group of the Univision and UniMás television networks, and 47 Spanish-language radio stations that feature nationally recognized, award-winning talent. Our dynamic digital portfolio includes Entravision Digital, which serves small- and medium-size businesses in high-density U.S. Latino markets and provides cutting-edge mobile programmatic solutions and demand-side platforms that allow advertisers to execute performance campaigns using machine-learned bidding algorithms. We also offer digital advertising solutions representing major technology platforms in Latin America, through our Cisneros Interactive business, and in Southeast Asia, through our MediaDonuts business. Shares of Entravision Class A Common Stock trade on The New York Stock Exchange under the ticker symbol: EVC. Learn more about all of our media, marketing and technology offerings at entravision.com or connect with us on LinkedIn and Facebook.

Forward-Looking Statements

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

Entravision Communications Corporation

Consolidated Balance Sheets

(In thousands; unaudited)

 

 

 

 

 

 

 

 

 

June 30,

 

 

December 31,

 

 

 

2021

 

 

2020

 

ASSETS

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

171,862

 

 

$

119,162

 

Marketable securities

 

 

10,009

 

 

 

27,988

 

Restricted cash

 

 

749

 

 

 

749

 

Trade receivables, net of allowance for doubtful accounts

 

 

141,697

 

 

 

142,004

 

Assets held for sale

 

 

7,248

 

 

 

2,141

 

Prepaid expenses and other current assets

 

 

23,345

 

 

 

18,021

 

Total current assets

 

 

354,910

 

 

 

310,065

 

Property and equipment, net

 

 

66,375

 

 

 

72,004

 

Intangible assets subject to amortization, net

 

 

45,760

 

 

 

49,412

 

Intangible assets not subject to amortization

 

 

211,753

 

 

 

216,653

 

Goodwill

 

 

58,043

 

 

 

58,043

 

Operating leases right of use asset

 

 

33,741

 

 

 

33,525

 

Other assets

 

 

7,436

 

 

 

7,643

 

Total assets

 

$

778,018

 

 

$

747,345

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Current maturities of long-term debt

 

$

3,000

 

 

$

3,000

 

Accounts payable and accrued expenses

 

 

141,767

 

 

 

126,849

 

Operating lease liabilities

 

 

7,524

 

 

 

7,290

 

Total current liabilities

 

 

152,291

 

 

 

137,139

 

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

 

 

208,612

 

 

 

210,454

 

Long-term operating lease liabilities

 

 

31,447

 

 

 

31,775

 

Other long-term liabilities

 

 

3,507

 

 

 

3,732

 

Deferred income taxes

 

 

57,729

 

 

 

54,980

 

Total liabilities

 

 

453,586

 

 

 

438,080

 

 

 

 

 

 

 

 

Redeemable noncontrolling interest

 

 

37,470

 

 

 

33,285

 

Stockholders’ equity

 

 

 

 

 

 

Class A common stock

 

 

6

 

 

 

6

 

Class B common stock

 

 

2

 

 

 

2

 

Class U common stock

 

 

1

 

 

 

1

 

Additional paid-in capital

 

 

826,474

 

 

 

828,813

 

Accumulated deficit

 

 

(538,493

)

 

 

(551,786

)

Accumulated other comprehensive income (loss)

 

 

(1,028

)

 

 

(1,056

)

Total stockholders’ equity

 

 

286,962

 

 

 

275,980

 

Total liabilities and stockholders’ equity

 

$

778,018

 

 

$

747,345

 

Entravision Communications Corporation

Consolidated Statements of Operations

(In thousands, except share and per share data)

(Unaudited)

 

 

 

Three-Month Period

 

 

Six-Month Period

 

 

 

Ended June 30,

 

 

Ended June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Net revenue

 

$

178,410

 

 

$

45,116

 

 

$

327,290

 

 

$

109,365

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue – digital

 

 

109,030

 

 

 

6,447

 

 

 

193,786

 

 

 

13,794

 

Direct operating expenses

 

 

28,336

 

 

 

22,140

 

 

 

54,897

 

 

 

48,819

 

Selling, general and administrative expenses

 

 

13,106

 

 

 

10,897

 

 

 

26,959

 

 

 

24,488

 

Corporate expenses

 

 

7,345

 

 

 

5,384

 

 

 

14,503

 

 

 

12,224

 

Depreciation and amortization

 

 

5,074

 

 

 

3,873

 

 

 

10,258

 

 

 

8,385

 

Impairment charge

 

 

112

 

 

 

 

 

 

1,438

 

 

 

39,835

 

Foreign currency (gain) loss

 

 

(309

)

 

 

(155

)

 

 

277

 

 

 

1,353

 

Other operating (gain) loss

 

 

(523

)

 

 

(2,030

)

 

 

(2,436

)

 

 

(2,866

)

 

 

 

162,171

 

 

 

46,556

 

 

 

299,682

 

 

 

146,032

 

Operating income (loss)

 

 

16,239

 

 

 

(1,440

)

 

 

27,608

 

 

 

(36,667

)

Interest expense

 

 

(1,856

)

 

 

(2,024

)

 

 

(3,573

)

 

 

(4,704

)

Interest income

 

 

83

 

 

 

539

 

 

 

223

 

 

 

1,162

 

Dividend income

 

 

2

 

 

 

 

 

 

4

 

 

 

24

 

Income (loss) before income taxes

 

 

14,468

 

 

 

(2,925

)

 

 

24,262

 

 

 

(40,185

)

Income tax benefit (expense)

 

 

(3,992

)

 

 

5,263

 

 

 

(6,784

)

 

 

6,931

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

 

10,476

 

 

 

2,338

 

 

 

17,478

 

 

 

(33,254

)

Net (income) loss attributable to redeemable noncontrolling interest

 

 

(2,612

)

 

 

 

 

 

(4,185

)

 

 

 

Net income (loss) attributable to common stockholders

 

$

7,864

 

 

$

2,338

 

 

$

13,293

 

 

$

(33,254

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

0.09

 

 

$

0.03

 

 

$

0.16

 

 

$

(0.39

)

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

 

$

0.09

 

 

$

0.03

 

 

$

0.15

 

 

$

(0.39

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share, basic and diluted

 

$

0.03

 

 

$

0.03

 

 

$

0.05

 

 

$

0.08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic

 

 

85,188,182

 

 

 

84,123,530

 

 

 

85,115,310

 

 

 

84,220,649

 

Weighted average common shares outstanding, diluted

 

 

87,777,039

 

 

 

84,669,250

 

 

 

87,382,215

 

 

 

84,220,649

 

Entravision Communications Corporation

Consolidated Statements of Cash Flows

(In thousands; unaudited)

 

 

 

 

 

 

 

 

 

Three-Month Period

 

 

Six-Month Period

 

 

 

Ended June 30,

 

 

Ended June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

10,476

 

 

$

2,338

 

 

$

17,478

 

 

$

(33,254

)

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

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

5,074

 

 

 

3,873

 

 

 

10,258

 

 

 

8,385

 

Impairment charge

 

 

112

 

 

 

—

 

 

 

1,438

 

 

 

39,835

 

Deferred income taxes

 

 

712

 

 

 

(5,585

)

 

 

3,699

 

 

 

(7,398

)

Non-cash interest

 

 

159

 

 

 

163

 

 

 

298

 

 

 

332

 

Amortization of syndication contracts

 

 

119

 

 

 

128

 

 

 

238

 

 

 

258

 

Payments on syndication contracts

 

 

(115

)

 

 

(123

)

 

 

(239

)

 

 

(253

)

Non-cash stock-based compensation

 

 

1,135

 

 

 

803

 

 

 

2,206

 

 

 

1,592

 

(Gain) loss on disposal of property and equipment

 

 

—

 

 

 

(627

)

 

 

—

 

 

 

(627

)

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

(Increase) decrease in accounts receivable

 

 

(9,460

)

 

 

12,031

 

 

 

467

 

 

 

19,513

 

(Increase) decrease in prepaid expenses and other assets

 

 

1,732

 

 

 

4,064

 

 

 

2,909

 

 

 

5,090

 

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

 

 

10,989

 

 

 

(9,616

)

 

 

5,633

 

 

 

(14,010

)

Net cash provided by operating activities

 

 

20,933

 

 

 

7,449

 

 

 

44,385

 

 

 

19,463

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from sale of property and equipment and intangibles

 

 

—

 

 

 

3,989

 

 

 

—

 

 

 

3,989

 

Purchases of property and equipment

 

 

(998

)

 

 

(3,005

)

 

 

(2,836

)

 

 

(5,676

)

Purchases of intangible assets

 

 

—

 

 

 

(3

)

 

 

—

 

 

 

(158

)

Proceeds from marketable securities

 

 

5,680

 

 

 

10,243

 

 

 

17,800

 

 

 

26,860

 

Net cash provided by (used in) investing activities

 

 

4,682

 

 

 

11,224

 

 

 

14,964

 

 

 

25,015

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from stock option exercises

 

 

172

 

 

 

—

 

 

 

172

 

 

 

—

 

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

 

 

(449

)

 

 

(15

)

 

 

(458

)

 

 

(15

)

Payments on long-term debt

 

 

(750

)

 

 

(750

)

 

 

(1,500

)

 

 

(1,500

)

Dividends paid

 

 

(2,133

)

 

 

(2,104

)

 

 

(4,259

)

 

 

(6,322

)

Repurchase of Class A common stock

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(525

)

Payments of capitalized debt costs

 

 

(604

)

 

 

—

 

 

 

(604

)

 

 

—

 

Net cash used in financing activities

 

 

(3,764

)

 

 

(2,869

)

 

 

(6,649

)

 

 

(8,362

)

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

 

 

24

 

 

 

(45

)

 

 

—

 

 

 

32

 

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

 

 

21,875

 

 

 

15,759

 

 

 

52,700

 

 

 

36,148

 

Cash, cash equivalents and restricted cash:

 

 

 

 

 

 

 

 

 

 

 

 

Beginning

 

 

150,736

 

 

 

54,246

 

 

 

119,911

 

 

 

33,857

 

Ending

 

$

172,611

 

 

$

70,005

 

 

$

172,611

 

 

$

70,005

 

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

 

 

Six-Month Period

 

 

 

Ended June 30,

 

 

Ended June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated adjusted EBITDA (1)

 

$

17,787

 

 

$

1,724

 

 

$

31,982

 

 

$

11,402

 

EBITDA attributable to redeemable noncontrolling interest

 

 

4,254

 

 

 

 

 

 

7,091

 

 

 

 

Interest expense

 

 

(1,856

)

 

 

(2,024

)

 

 

(3,573

)

 

 

(4,704

)

Interest income

 

 

83

 

 

 

539

 

 

 

223

 

 

 

1,162

 

Dividend income

 

 

2

 

 

 

 

 

 

4

 

 

 

24

 

Income tax expense

 

 

(3,992

)

 

 

5,263

 

 

 

(6,784

)

 

 

6,931

 

Amortization of syndication contracts

 

 

(119

)

 

 

(129

)

 

 

(238

)

 

 

(258

)

Payments on syndication contracts

 

 

115

 

 

 

123

 

 

 

239

 

 

 

253

 

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

 

 

(334

)

 

 

(104

)

 

 

(650

)

 

 

(235

)

Non-cash stock-based compensation included in corporate expenses

 

 

(801

)

 

 

(699

)

 

 

(1,556

)

 

 

(1,357

)

Depreciation and amortization

 

 

(5,074

)

 

 

(3,873

)

 

 

(10,258

)

 

 

(8,385

)

Impairment charge

 

 

(112

)

 

 

 

 

 

(1,438

)

 

 

(39,835

)

Non-recurring cash severance charge

 

 

 

 

 

(512

)

 

 

 

 

 

(1,118

)

Other operating gain (loss)

 

 

523

 

 

 

2,030

 

 

 

2,436

 

 

 

2,866

 

Net (income) loss attributable to redeemable noncontrolling interest

 

 

(2,612

)

 

 

 

 

 

(4,185

)

 

 

 

Net income (loss) attributable to common stockholders

 

 

7,864

 

 

 

2,338

 

 

 

13,293

 

 

 

(33,254

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

5,074

 

 

 

3,873

 

 

 

10,258

 

 

 

8,385

 

Impairment charge

 

 

112

 

 

 

 

 

 

1,438

 

 

 

39,835

 

Deferred income taxes

 

 

712

 

 

 

(5,585

)

 

 

3,699

 

 

 

(7,398

)

Non-cash interest

 

 

159

 

 

 

163

 

 

 

298

 

 

 

332

 

Amortization of syndication contracts

 

 

119

 

 

 

128

 

 

 

238

 

 

 

258

 

Payments on syndication contracts

 

 

(115

)

 

 

(123

)

 

 

(239

)

 

 

(253

)

Non-cash stock-based compensation

 

 

1,135

 

 

 

803

 

 

 

2,206

 

 

 

1,592

 

(Gain) loss on disposal of property and equipment

 

 

 

 

 

(627

)

 

 

 

 

 

(627

)

Net income (loss) attributable to redeemable noncontrolling interest

 

 

2,612

 

 

 

 

 

 

4,185

 

 

 

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

(Increase) decrease in accounts receivable

 

 

(9,460

)

 

 

12,031

 

 

 

467

 

 

 

19,513

 

(Increase) decrease in prepaid expenses and other assets

 

 

1,732

 

 

 

4,064

 

 

 

2,909

 

 

 

5,090

 

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

 

 

10,989

 

 

 

(9,616

)

 

 

5,633

 

 

 

(14,010

)

Cash flows from operating activities

 

 

20,933

 

 

 

7,449

 

 

 

44,385

 

 

 

19,463

 

(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

 

 

Six-Month Period

 

 

 

Ended June 30,

 

 

Ended June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Consolidated adjusted EBITDA (1)

 

$

17,787

 

 

$

1,724

 

 

$

31,982

 

 

$

11,402

 

Net interest expense (1)

 

 

(1,614

)

 

 

(1,322

)

 

 

(3,052

)

 

 

(3,210

)

Dividend income

 

 

2

 

 

 

 

 

 

4

 

 

 

24

 

Cash paid for income taxes

 

 

(3,280

)

 

 

(323

)

 

 

(3,085

)

 

 

(467

)

Capital expenditures (2)

 

 

(998

)

 

 

(3,005

)

 

 

(2,836

)

 

 

(5,676

)

Non-recurring cash severance charge

 

 

 

 

 

(512

)

 

 

 

 

 

(1,118

)

Other operating gain (loss)

 

 

523

 

 

 

2,030

 

 

 

2,436

 

 

 

2,866

 

Free cash flow (1)

 

 

12,420

 

 

 

(1,408

)

 

 

25,449

 

 

 

3,821

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures (2)

 

 

998

 

 

 

3,005

 

 

 

2,836

 

 

 

5,676

 

EBITDA attributable to redeemable noncontrolling interest

 

 

4,254

 

 

 

 

 

 

7,091

 

 

 

 

(Gain) loss on disposal of property and equipment

 

 

 

 

 

(627

)

 

 

 

 

 

(627

)

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

(Increase) decrease in accounts receivable

 

 

(9,460

)

 

 

12,031

 

 

 

467

 

 

 

19,513

 

(Increase) decrease in prepaid expenses and other assets

 

 

1,732

 

 

 

4,064

 

 

 

2,909

 

 

 

5,090

 

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

 

 

10,989

 

 

 

(9,616

)

 

 

5,633

 

 

 

(14,010

)

Cash Flows From Operating Activities

 

$

20,933

 

 

$

7,449

 

 

$

44,385

 

 

$

19,463

(1)

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

(2)

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

 

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

Kimberly Esterkin
ADDO Investor Relations
310-829-5400
[email protected]

Source: Entravision Communications Corporation

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