Entravision Communications Corporation (NYSE: EVC), a leading
global advertising solutions, media and technology company, today
announced financial results for the three- and nine-month periods
ended September 30, 2023.
Third Quarter 2023 Highlights
- Record quarterly advertising revenue
- Net revenue up 14% over the prior-year quarter
- Net income attributable to common stockholders down 71%
compared to the prior-year quarter
- Consolidated EBITDA down 45% compared to the prior-year
quarter
- Operating cash flow up 45% over the prior-year quarter
- Free cash flow down 74% compared to the prior-year quarter
- Quarterly cash dividend of $0.05 per share
“We achieved a record quarterly advertising revenue of $274.4
million, up 14% year-over-year, led by strength in our Digital
segment, which now comprises 84% of total revenue,” said Chris
Young, Chief Financial Officer. “We continued to execute on our
Digital transformation strategy during the quarter with the signing
of two new partnerships with Match and Pinterest to further
diversify our portfolio of digital solutions. While non-returning
political revenue and sales mix contributed to the year-over-year
decline in our Consolidated EBITDA, we anticipate increased
political spending ahead of the 2024 elections will benefit our
Television and Audio segments and Consolidated EBITDA in the
quarters to come."
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 $4.4 million. The quarterly dividend will be payable on December
29, 2023 to shareholders of record as of the close of business on
December 15, 2023, and the common stock will trade ex-dividend on
December 14, 2023. The Company currently anticipates that future
cash dividends will be paid on a quarterly basis; however, any
decision to pay future cash dividends will be subject to approval
by the Board.
Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures
as defined by SEC Regulation G. The GAAP financial measure most
directly comparable to each of these non-GAAP financial measures,
and a table reconciling each of these non-GAAP financial measures
to its most directly comparable GAAP financial measure is included
beginning on page 10.
Unaudited Financial Highlights (In
thousands, except share and per share data)
Three-Month Period
Nine-Month Period
Ended September 30,
Ended September 30,
2023
2022
% Change
2023
2022
% Change
Net revenue
$
274,417
$
241,014
14
%
$
786,804
$
659,881
19
%
Cost of revenue - digital (1)
199,289
157,095
27
%
562,881
431,951
30
%
Operating expenses (2)
53,809
49,294
9
%
163,069
140,527
16
%
Corporate expenses (3)
13,292
9,525
40
%
35,836
26,769
34
%
Foreign currency (gain) loss
548
1,966
(72
)%
289
2,112
(86
)%
Consolidated EBITDA (4)
14,185
25,972
(45
)%
41,420
66,566
(38
)%
Free cash flow (5)
$
4,004
$
15,443
(74
)%
$
9,470
$
44,026
(78
)%
Net income (loss)
$
2,732
$
9,090
(70
)%
$
2,430
$
19,444
(88
)%
Net (income) loss attributable to
redeemable noncontrolling interest
$
(13
)
$
-
*
$
(1
)
$
-
*
Net (income) loss attributable to
noncontrolling interest
$
-
$
303
(100
)%
$
342
$
303
13
%
Net income (loss) attributable to common
stockholders
$
2,719
$
9,393
(71
)%
$
2,771
$
19,747
(86
)%
Net income (loss) per share attributable
to common stockholders, basic and diluted
$
0.03
$
0.11
(73
)%
$
0.03
$
0.23
(87
)%
Weighted average common shares
outstanding, basic
87,995,567
84,945,873
87,803,770
85,469,675
Weighted average common shares
outstanding, diluted
89,888,721
87,417,501
89,835,363
87,671,726
(1)
Consists primarily of the costs of online
media acquired from third-party publishers. Media cost is
classified as cost of revenue in the period in which the
corresponding revenue is recognized.
(2)
Operating expenses include direct
operating and selling, general and administrative expenses.
Included in operating expenses are $2.6 million and $1.0 million of
non-cash stock-based compensation for the three-month periods ended
September 30, 2023 and 2022, respectively, and $7.2 million and
$2.9 million of non-cash stock-based compensation for the
nine-month periods ended September 30, 2023 and 2022,
respectively.
(3)
Corporate expenses include $4.4 million
and $1.8 million of non-cash stock-based compensation for the
three-month periods ended September 30, 2023 and 2022,
respectively, and $9.8 million and $5.1 million of non-cash
stock-based compensation for the nine-month periods ended September
30, 2023 and 2022, respectively.
(4)
Consolidated 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 EBITDA because
that measure is defined in our 2017 Credit Agreement and 2023
Credit Agreement, 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
EBITDA less cash paid for income taxes, net interest expense,
capital expenditures (less amounts reimbursed by landlord) and
non-recurring cash expenses plus dividend income, and other
operating gain (loss). Net interest expense is defined as interest
expense, less non-cash interest expense relating to amortization of
debt finance costs, and less interest income.
Unaudited Financial Results (In
thousands)
Three-Month Period
Ended September 30,
2023
2022
% Change
Net revenue
$
274,417
$
241,014
14
%
Cost of revenue - digital (1)
199,289
157,095
27
%
Operating expenses (1)
53,809
49,294
9
%
Corporate expenses (1)
13,292
9,525
40
%
Depreciation and amortization
7,356
6,554
12
%
Change in fair value of contingent
consideration
(5,997
)
734
*
Impairment charge
989
—
*
Foreign currency (gain) loss
548
1,966
(72
)%
Other operating (gain) loss
—
(58
)
(100
)%
Operating income (loss)
5,131
15,904
(68
)%
Interest expense, net
(2,896
)
(2,267
)
28
%
Dividend income
—
6
(100
)%
Realized gain (loss) on marketable
securities
(33
)
(473
)
(93
)%
Income (loss) before income taxes
2,202
13,170
(83
)%
Income tax benefit (expense)
530
(4,080
)
*
Net income (loss)
2,732
9,090
(70
)%
Net (income) loss attributable to
redeemable noncontrolling interest
(13
)
—
*
Net (income) loss attributable to
noncontrolling interest
—
303
(100
)%
Net income (loss) attributable to common
stockholders
$
2,719
$
9,393
(71
)%
(1) Cost of revenue, operating expenses
and corporate expenses are defined on page 2.
Net revenue in the third quarter of 2023 totaled $274.4 million,
up 14% from $241.0 million in the prior-year period. Of the overall
increase, $42.6 million was attributable to our digital segment and
was primarily due to advertising revenue growth from our digital
commercial partnerships business, and due to various acquisitions,
which did not fully contribute to our financial results in our
digital segment in the comparable period. The overall increase was
partially offset by a decrease of $6.1 million attributable to our
television segment, primarily due to decreases in political
advertising revenue and national advertising revenue, partially
offset by increases in local advertising revenue and spectrum usage
rights revenue. In addition, the overall increase was partially
offset by a decrease of $3.1 million attributable to our audio
segment, primarily due to a decrease in political advertising
revenue, and decreases in local and national advertising
revenue.
Cost of revenue in the third quarter of 2023 totaled $199.3
million, up 27% from $157.1 million in the prior-year period. The
increase was primarily due to increased cost of revenue related to
advertising revenue growth from our digital commercial partnerships
business, and due to various acquisitions, which did not fully
contribute to our financial results in our digital segment in the
comparable period.
Operating expenses in the third quarter of 2023 totaled $53.8
million, up 9% from $49.3 million in the prior-year period. Of the
overall increase, $4.1 million was attributable to our digital
segment and was primarily due to an increase in non-cash
stock-based compensation, which is mainly a result of the timing of
the 2023 annual restricted stock unit ("RSU") grant to certain
employees, which was made in February 2023 compared to the 2022
annual grant, which was made in December 2022, and due to an
increase in expenses associated with the increase in digital
advertising revenue, an increase in salary expense, and due to
various acquisitions, which did not fully contribute to our
financial results in our digital segment in the comparable period.
In addition, of the overall increase in operating expenses, $0.5
million was attributable to our audio segment primarily due to an
increase in non-cash stock-based compensation, which is mainly a
result of the 2023 annual RSU grant timing mentioned above, and due
to an increase in salaries. The overall increase was partially
offset by a decrease of $0.1 million attributable to our television
segment.
Corporate expenses in the third quarter of 2023 totaled $13.3
million, up 40% from $9.5 million in the prior-year period. The
increase was primarily due to an increase in non-cash stock-based
compensation, which is mainly a result of the 2023 annual RSU grant
timing mentioned above and RSU grant to our new CEO, and increases
in professional service fees.
Nine-Month Period
Ended September 30,
2023
2022
% Change
Net revenue
$
786,804
$
659,881
19
%
Cost of revenue - digital (1)
562,881
431,951
30
%
Operating expenses (1)
163,069
140,527
16
%
Corporate expenses (1)
35,836
26,769
34
%
Depreciation and amortization
20,336
19,212
6
%
Change in fair value of contingent
consideration
(8,939
)
6,810
*
Impairment charge
989
—
*
Foreign currency (gain) loss
289
2,112
(86
)%
Other operating (gain) loss
—
(1,011
)
(100
)%
Operating income (loss)
12,343
33,511
(63
)%
Interest expense, net
(9,333
)
(5,309
)
76
%
Dividend income
32
20
60
%
Realized gain (loss) on marketable
securities
(94
)
(473
)
(80
)%
Gain (loss) on debt extinguishment
(1,556
)
—
*
Income (loss) before income taxes
1,392
27,749
(95
)%
Income tax benefit (expense)
1,038
(8,305
)
*
Net income (loss)
2,430
19,444
(88
)%
Net (income) loss attributable to
redeemable noncontrolling interest
(1
)
—
*
Net (income) loss attributable to
noncontrolling interest
342
303
13
%
Net income (loss) attributable to common
stockholders
$
2,771
$
19,747
(86
)%
Net revenue for the nine-month period of 2023 totaled $786.8
million, up 19% from $659.9 million in the prior-year period. Of
the overall increase, $140.9 million was attributable to our
digital segment and was primarily due to advertising revenue growth
from our digital commercial partnerships business, and due to
various acquisitions, which did not fully contribute to our
financial results in our digital segment in the comparable period.
The overall increase was partially offset by a decrease of $9.1
million attributable to our television segment, primarily due to
decreases in political advertising revenue and national advertising
revenue, partially offset by increases in local advertising
revenue, spectrum usage rights revenue and retransmission consent
revenue. In addition, the overall increase was partially offset by
a decrease of $4.9 million attributable to our audio segment,
primarily due to a decrease in political advertising revenue, and
decreases in local and national advertising revenue.
Cost of revenue for the nine-month period of 2023 totaled $562.9
million, up 30% from $432.0 million in the prior-year period. The
increase was due to increased cost of revenue related to
advertising revenue growth from our digital commercial partnerships
business, and due to various acquisitions, which did not fully
contribute to our financial results in our digital segment in the
comparable period.
Operating expenses for the nine-month period of 2023 totaled
$163.1 million, up 16% from $140.5 million in the prior-year
period. Of the overall increase, $18.2 million was attributable to
our digital segment and was primarily due to an increase in
non-cash stock-based compensation, which is mainly a result of the
2023 annual RSU grant timing mentioned above, and due to an
increase in expenses associated with the increase in digital
advertising revenue, an increase in salary expense, and due to
various acquisitions, which did not fully contribute to our
financial results in our digital segment in the comparable period.
Additionally, of the overall increase in operating expenses, $0.9
million was attributable to our television segment primarily due to
an increase in non-cash stock-based compensation, which is mainly a
result of the 2023 annual RSU grant timing mentioned above,
partially offset by a decrease in bad debt expense. In addition, of
the overall increase in operating expenses, $3.5 million was
attributable to our audio segment primarily due to an increase in
non-cash stock-based compensation, which is mainly a result of the
2023 annual RSU grant timing mentioned above, and due to an
increase in salaries and increased rent expense in the temporary
office space until the move to our new permanent offices, which was
completed in June 2023.
Corporate expenses for the nine-month period of 2023 totaled
$35.8 million, up 34% from $26.8 million in the prior-year period.
The increase was primarily due to an increase in non-cash
stock-based compensation, which is mainly a result of the 2023
annual RSU grant timing mentioned above and RSU grant to our new
CEO, and increases in professional service fees, audit fees and
rent expense.
Balance Sheet and Related Metrics
Cash and marketable securities as of September 30, 2023 totaled
$128.7 million. Total debt as defined in the Company’s credit
agreement was $211.1 million. Net of $50 million of cash and
marketable securities, total leverage as defined in the Company’s
credit agreement was 2.1 times as of September 30, 2023. Net of
total cash and marketable securities, total leverage was 1.1
times.
Unaudited Segment Results (In
thousands)
Three-Month Period
Nine-Month Period
Ended September 30,
Ended September 30,
2023
2022
% Change
2023
2022
% Change
Net Revenue
Digital
$
231,487
$
188,877
23
%
$
657,865
$
516,966
27
%
Television
29,552
35,678
(17
)%
89,807
98,918
(9
)%
Audio
13,378
16,459
(19
)%
39,132
43,997
(11
)%
Total
$
274,417
$
241,014
14
%
$
786,804
$
659,881
19
%
Cost of Revenue - digital (1)
Digital
$
199,289
$
157,095
27
%
$
562,881
$
431,951
30
%
Operating Expenses (1)
Digital
23,173
19,080
21
%
69,755
51,577
35
%
Television
19,892
20,003
(1
)%
59,859
58,969
2
%
Audio
10,744
10,211
5
%
33,455
29,981
12
%
Total
$
53,809
$
49,294
9
%
$
163,069
$
140,527
16
%
Corporate Expenses (1)
$
13,292
$
9,525
40
%
$
35,836
$
26,769
34
%
Consolidated EBITDA (1)
$
14,185
$
25,972
(45
)%
$
41,420
$
66,566
(38
)%
(1) Cost of revenue, operating expenses,
corporate expenses, and consolidated EBITDA are defined on page
2.
Notice of Conference Call
Entravision Communications Corporation will hold a conference
call to discuss its third quarter 2023 results on Thursday,
November 2, 2023 at 5:00 p.m. Eastern Time. To access the
conference call, please dial (844) 836-8739 (U.S.) or (412)
317-5440 (Int’l) ten minutes prior to the start time and reference
Conference ID number 10182461. 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 global advertising solutions, media and
technology company. Over the past three decades, we have
strategically evolved into a digital powerhouse, expertly
connecting brands to consumers in the U.S., Latin America, Europe,
Asia and Africa. Our digital segment, the company’s largest by
revenue, offers a full suite of end-to-end advertising services in
40 countries. We have commercial partnerships with Meta, X Corp.
(formerly known as Twitter), TikTok, and Spotify, and marketers can
use our Smadex and other platforms to deliver targeted advertising
to audiences around the globe. In the U.S., we maintain a
diversified portfolio of television and radio stations that target
Hispanic audiences and complement our global digital services.
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.
(Financial Table Follows)
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,
2023
2022
2023
2022
Net revenue
$
274,417
$
241,014
$
786,804
$
659,881
Expenses:
Cost of revenue - digital
199,289
157,095
562,881
431,951
Direct operating expenses
31,855
30,086
94,782
87,505
Selling, general and administrative
expenses
21,954
19,208
68,287
53,022
Corporate expenses
13,292
9,525
35,836
26,769
Depreciation and amortization
7,356
6,554
20,336
19,212
Change in fair value of contingent
consideration
(5,997
)
734
(8,939
)
6,810
Impairment charge
989
—
989
—
Foreign currency (gain) loss
548
1,966
289
2,112
Other operating (gain) loss
—
(58
)
—
(1,011
)
269,286
225,110
774,461
626,370
Operating income (loss)
5,131
15,904
12,343
33,511
Interest expense
(4,454
)
(3,055
)
(12,788
)
(7,225
)
Interest income
1,558
788
3,455
1,916
Dividend income
—
6
32
20
Realized gain (loss) on marketable
securities
(33
)
(473
)
(94
)
(473
)
Gain (loss) on debt extinguishment
—
—
(1,556
)
—
Income (loss) before income taxes
2,202
13,170
1,392
27,749
Income tax benefit (expense)
530
(4,080
)
1,038
(8,305
)
Net income (loss)
2,732
9,090
2,430
19,444
Net (income) loss attributable to
redeemable noncontrolling interest
(13
)
—
(1
)
—
Net (income) loss attributable to
noncontrolling interest
—
303
342
303
Net income (loss) attributable to common
stockholders
$
2,719
$
9,393
$
2,771
$
19,747
Basic and diluted earnings per share:
Net income (loss) per share attributable
to common stockholders, basic and diluted
$
0.03
$
0.11
$
0.03
$
0.23
Cash dividends declared per common share,
basic and diluted
$
0.05
$
0.03
$
0.15
$
0.08
Weighted average common shares
outstanding, basic
87,995,567
84,945,873
87,803,770
85,469,675
Weighted average common shares
outstanding, diluted
89,888,721
87,417,501
89,835,363
87,671,726
Entravision Communications
Corporation
Consolidated Balance
Sheets
(In thousands;
unaudited)
September 30,
December 31,
2023
2022
ASSETS
Current assets
Cash and cash equivalents
$
110,624
$
110,691
Marketable securities
18,063
44,528
Restricted cash
765
753
Trade receivables, net of allowance for
doubtful accounts
211,175
224,713
Assets held for sale
1,223
—
Prepaid expenses and other current
assets
43,404
27,238
Total current assets
385,254
407,923
Property and equipment, net
67,750
61,362
Intangible assets subject to amortization,
net
55,706
61,811
Intangible assets not subject to
amortization
207,453
207,453
Goodwill
90,672
86,991
Deferred income taxes
2,591
2,591
Operating leases right of use asset
45,159
44,413
Other assets
21,550
8,297
Total assets
$
876,135
$
880,841
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities
Current maturities of long-term debt
$
8,643
$
5,256
Accounts payable and accrued expenses
240,417
237,415
Operating lease liabilities
7,150
5,570
Total current liabilities
256,210
248,241
Long-term debt, less current maturities,
net of unamortized debt issuance costs
201,301
207,292
Long-term operating lease liabilities
46,849
42,151
Other long-term liabilities
17,294
30,198
Deferred income taxes
68,464
67,590
Total liabilities
590,118
595,472
Redeemable noncontrolling interest
47,301
—
Stockholders' equity
Class A common stock
8
8
Class U common stock
1
1
Additional paid-in capital
742,040
776,298
Accumulated deficit
(501,604
)
(504,375
)
Accumulated other comprehensive income
(loss)
(1,729
)
(1,510
)
Total stockholders' equity
238,716
270,422
Noncontrolling interest
-
14,947
Total equity
238,716
285,369
Total liabilities and equity
$
876,135
$
880,841
Entravision Communications
Corporation
Consolidated Statements of
Cash Flows
(In thousands;
unaudited)
Three-Month Period
Nine-Month Period
Ended September 30,
Ended September 30,
2023
2022
2023
2022
Cash flows from operating
activities:
Net income (loss)
$
2,732
$
9,090
$
2,430
$
19,444
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization
7,356
6,554
20,336
19,212
Impairment charge
989
—
989
—
Deferred income taxes
(40
)
62
(169
)
(3,151
)
Non-cash interest
85
365
264
1,076
Amortization of syndication contracts
118
117
358
348
Payments on syndication contracts
(125
)
(70
)
(366
)
(304
)
Non-cash stock-based compensation
7,032
2,786
17,053
7,995
(Gain) loss on marketable securities
33
473
94
473
(Gain) loss on disposal of property and
equipment
(29
)
39
(11
)
(599
)
(Gain) loss on debt extinguishment
—
—
1,556
—
Change in fair value of contingent
consideration
(5,997
)
734
(8,939
)
6,810
Changes in assets and liabilities:
(Increase) decrease in accounts
receivable
(1,219
)
4,708
16,261
22,296
(Increase) decrease in prepaid expenses
and other current assets, operating leases right of use asset and
other assets
(3,902
)
1,069
(7,199
)
(183
)
Increase (decrease) in accounts payable,
accrued expenses and other liabilities
14,993
(10,691
)
26,460
4,725
Net cash provided by operating
activities
22,026
15,236
69,117
78,142
Cash flows from investing
activities:
Proceeds from sale of property and
equipment and intangibles
33
—
83
2,671
Purchases of property and equipment
(5,023
)
(4,673
)
(19,881
)
(7,882
)
Purchase of a business, net of cash
acquired
—
—
(6,930
)
—
Investment in variable interest entities,
net of cash consolidated
—
(5,164
)
—
(5,164
)
Purchases of marketable securities
(1,183
)
(5,241
)
(11,355
)
(92,480
)
Proceeds from sale of marketable
securities
10,000
36,369
38,093
46,868
Purchases of investments
(100
)
—
(300
)
—
Issuance of loan receivable
(5,550
)
—
(13,636
)
—
Net cash provided by (used in)
investing activities
(1,823
)
21,291
(13,926
)
(55,987
)
Cash flows from financing
activities:
Proceeds from stock option exercises
—
—
554
218
Tax payments related to shares withheld
for share-based compensation plans
(63
)
—
(158
)
(267
)
Payments on debt
(1,250
)
(1,001
)
(214,495
)
(2,501
)
Dividends paid
(4,400
)
(2,124
)
(13,182
)
(6,415
)
Distributions to noncontrolling
interest
—
—
(3,380
)
—
Repurchase of Class A common stock
—
—
—
(11,280
)
Payment of contingent consideration
(3,403
)
(21,734
)
(35,113
)
(65,340
)
Principal payments under finance lease
obligation
(37
)
(33
)
(113
)
(72
)
Proceeds from borrowings on debt
1
—
212,420
—
Payments for debt issuance costs
—
—
(1,777
)
—
Net cash used in financing
activities
(9,152
)
(24,892
)
(55,244
)
(85,657
)
Effect of exchange rates on cash, cash
equivalents and restricted cash
(3
)
5
(2
)
(1
)
Net increase (decrease) in cash, cash
equivalents and restricted cash
11,048
11,640
(55
)
(63,503
)
Cash, cash equivalents and restricted
cash:
Beginning
100,341
110,700
111,444
185,843
Ending
$
111,389
$
122,340
$
111,389
$
122,340
Entravision Communications
Corporation
Reconciliation of Consolidated
EBITDA to Cash Flows From Operating Activities
(In thousands;
unaudited)
The most directly comparable GAAP
financial measure is operating cash flow. A reconciliation of this
non-GAAP measure to cash flows from operating activities for each
of the periods presented is as follows:
Three-Month Period
Nine-Month Period
Ended September 30,
Ended September 30,
2023
2022
2023
2022
Consolidated EBITDA (1)
$
14,185
$
25,972
$
41,420
$
66,566
EBITDA attributable to redeemable
noncontrolling interest
319
—
736
—
EBITDA attributable to noncontrolling
interest
—
(5
)
230
(5
)
Interest expense
(4,454
)
(3,055
)
(12,788
)
(7,225
)
Interest income
1,558
788
3,455
1,916
Dividend income
-
6
32
20
Realized gain (loss) on marketable
securities
(33
)
(473
)
(94
)
(473
)
Income tax expense
530
(4,080
)
1,038
(8,305
)
Amortization of syndication contracts
(118
)
(117
)
(358
)
(348
)
Payments on syndication contracts
125
70
366
304
Non-cash stock-based compensation included
in direct operating expenses
(2,637
)
(981
)
(7,218
)
(2,878
)
Non-cash stock-based compensation included
in corporate expenses
(4,395
)
(1,805
)
(9,835
)
(5,117
)
Depreciation and amortization
(7,356
)
(6,554
)
(20,336
)
(19,212
)
Change in fair value of contingent
consideration
5,997
(734
)
8,939
(6,810
)
Impairment charge
(989
)
—
(989
)
—
Non-recurring cash severance charge
—
—
(612
)
—
Other operating gain (loss)
—
58
—
1,011
Gain (loss) on debt extinguishment
—
—
(1,556
)
—
Net (income) loss attributable to
redeemable noncontrolling interest
(13
)
—
(1
)
—
Net (income) loss attributable to
noncontrolling interest
—
303
342
303
Net income (loss) attributable to common
stockholders
2,719
9,393
2,771
19,747
Depreciation and amortization
7,356
6,554
20,336
19,212
Impairment charge
989
—
989
—
Deferred income taxes
(40
)
62
(169
)
(3,151
)
Non-cash interest
85
365
264
1,076
Amortization of syndication contracts
118
117
358
348
Payments on syndication contracts
(125
)
(70
)
(366
)
(304
)
Non-cash stock-based compensation
7,032
2,786
17,053
7,995
Realized (gain) loss on marketable
securities
33
473
94
473
(Gain) loss on debt extinguishment
—
—
1,556
—
(Gain) loss on disposal of property and
equipment
(29
)
39
(11
)
(599
)
Change in fair value of contingent
consideration
(5,997
)
734
(8,939
)
6,810
Net income (loss) attributable to
redeemable noncontrolling interest
13
—
1
—
Net income (loss) attributable to
noncontrolling interest
—
(303
)
(342
)
(303
)
Changes in assets and liabilities:
(Increase) decrease in accounts
receivable
(1,219
)
4,708
16,261
22,296
(Increase) decrease in prepaid expenses
and other current assets, operating leases right of use asset and
other assets
(3,902
)
1,069
(7,199
)
(183
)
Increase (decrease) in accounts payable,
accrued expenses and other liabilities
14,993
(10,691
)
26,460
4,725
Cash flows from operating activities
22,026
15,236
69,117
78,142
(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 operating cash flow. A reconciliation of this
non-GAAP measure to cash flows from operating activities for each
of the periods presented is as follows:
Three-Month Period
Nine-Month Period
Ended September 30,
Ended September 30,
2023
2022
2023
2022
Consolidated EBITDA (1)
$
14,185
$
25,972
$
41,420
$
66,566
Net interest expense (1)
(2,811
)
(1,902
)
(9,069
)
(4,233
)
Dividend income
—
6
32
20
Cash paid for income taxes
(2,347
)
(4,018
)
(5,929
)
(11,456
)
Capital expenditures (2)
(5,023
)
(4,673
)
(19,881
)
(7,882
)
Landlord incentive reimbursement
—
—
3,509
—
Non-recurring cash severance charge
—
—
(612
)
—
Other operating gain (loss)
—
58
—
1,011
Free cash flow (1)
4,004
15,443
9,470
44,026
Capital expenditures (2)
5,023
4,673
19,881
7,882
Landlord incentive reimbursement
—
—
(3,509
)
—
EBITDA attributable to redeemable
noncontrolling interest
319
—
736
—
EBITDA attributable to noncontrolling
interest
—
(5
)
230
(5
)
(Gain) loss on disposal of property and
equipment
(29
)
39
(11
)
(599
)
Cash paid for income taxes
2,347
4,018
5,929
11,456
Deferred income taxes
(40
)
62
(169
)
(3,151
)
Income tax (expense) benefit
530
(4,080
)
1,038
(8,305
)
Changes in assets and liabilities:
(Increase) decrease in accounts
receivable
(1,219
)
4,708
16,261
22,296
(Increase) decrease in prepaid expenses
and other current assets, operating leases right of use asset and
other assets
(3,902
)
1,069
(7,199
)
(183
)
Increase (decrease) in accounts payable,
accrued expenses and other liabilities
14,993
(10,691
)
26,460
4,725
Cash Flows From Operating Activities
$
22,026
$
15,236
$
69,117
$
78,142
(1)
Consolidated EBITDA, net interest expense,
and free cash flow are defined on page 2.
(2)
Capital expenditures are not part of the
consolidated statement of operations.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231102019508/en/
Christopher T. Young Chief Financial Officer and Treasurer
Entravision Communications Corporation 310-447-3870
Kimberly Orlando ADDO Investor Relations 310-829-5400
evc@addo.com
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