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Entravision Communications Corporation Reports Third Quarter 2019 Results

- Announces Quarterly Cash Dividend of $0.05 Per Share -

SANTA MONICA, Calif., Nov. 7, 2019 /PRNewswire/ -- Entravision Communications Corporation (EVC) today reported financial results for the three- and nine-month periods ended September 30, 2019.

Historical results, which are attached, are in thousands of U.S. dollars (except share and per share data). This press release contains certain non-GAAP financial measures as defined by SEC Regulation G. The GAAP financial measure most directly comparable to each of these non-GAAP financial measures, and a table reconciling each of these non-GAAP financial measures to its most directly comparable GAAP financial measure is included beginning on page 12. Unaudited financial highlights are as follows:


Three-Month Period



Nine-Month Period



Ended September 30,



Ended September 30,



2019



2018



%
Change



2019



2018



%
Change


Net revenue

$

68,816



$

74,575




(8)

%


$

202,737



$

215,742




(6)

%

Cost of revenue - digital media (1)


9,942




13,240




(25)

%



26,443




35,249




(25)

%

Operating expenses (2)


43,264




44,092




(2)

%



129,208




132,209




(2)

%

Corporate expenses (3)


6,785




6,913




(2)

%



20,180




19,154




5

%

Foreign currency (gain) loss


927




335




177

%



977




531




84

%

























Consolidated adjusted EBITDA (4)


9,142




11,299




(19)

%



29,778




33,102




(10)

%

























Free cash flow (5)

$

326



$

2,214




(85)

%


$

3,479



$

12,764




(73)

%

























Net income (loss)

$

(12,217)



$

2,215



*



$

(27,072)



$

5,248



*


























Net income per share, basic and diluted

$

(0.14)



$

0.02



*



$

(0.32)



$

0.06



*


























Weighted average common shares outstanding, basic


84,765,694




88,852,342








85,404,250




89,371,750






Weighted average common shares outstanding, diluted


84,765,694




90,122,425








85,404,250




90,574,663








(1)

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



(2)

For purposes of presentation in this table, the operating expenses line item includes direct operating and selling, general and administrative expenses. Included in operating expenses
are $0.1 million and $0.2 million of non-cash stock-based compensation for the three-month periods ended September 30, 2019 and 2018, respectively, and $0.3 million and $0.4 million
of non-cash stock-based compensation for the nine-month periods ended September 30, 2019 and 2018, respectively. Also for purposes of presentation in this table, the operating expenses
line item does not include corporate expenses, foreign currency (gain) loss, depreciation and amortization, impairment charge, gain (loss) on sale of assets, gain (loss) on debt extinguishment,
other income (loss) and change in fair value of contingent consideration.



(3)

Corporate expenses include $0.7 million and $1.1 million of non-cash stock-based compensation for the three-month periods ended September 30, 2019 and 2018, respectively, and $2.1 million
and $3.3 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2019 and 2018, respectively.



(4)

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



(5)

Free cash flow is defined as consolidated adjusted EBITDA less cash paid for income taxes, net interest expense, capital expenditures and non-recurring cash expenses plus dividend income, FCC
reimbursement for broadcast television repack and revenue from FCC auction for broadcast spectrum less related cash expenses. Net interest expense is defined as interest expense, less non-cash interest
expense relating to amortization of debt finance costs, and less interest income.

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

Quarterly Cash Dividend

The Company announced today that its Board of Directors approved a quarterly cash dividend to shareholders of $0.05 per share on the Company's Class A, Class B and Class U common stock, in an aggregate amount of approximately $4.3 million. The quarterly dividend will be payable on December 31, 2019 to shareholders of record as of the close of business on December 16, 2019, and the common stock will trade ex-dividend on December 13, 2019. 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.

Goodwill and Intangible Assets Impairment

The Company recorded an impairment charge of $5.3 million related to goodwill as a result of an appraisal recently conducted on its digital reporting unit. Due to lower than anticipated performance of its digital reporting unit, and updated internal forecasts of future performance of its digital reporting unit, the Company determined that triggering events had occurred during the third quarter of 2019 that required interim impairment assessment for its digital reporting unit. This impairment charge is in addition to an impairment charge on its digital reporting unit incurred in the second quarter of 2019.

The Company also recorded an impairment charge of $3.5 million related to indefinite life intangible assets as a result of an appraisal recently conducted on one of its television broadcast licenses. During the third quarter, as a result of changes in regulations in Mexico, the Company was required to prepay the license fees for its Mexico broadcast licenses for a period of 20 years. The Company elected not to make the required prepayment for station XHRIO-TV serving the Matamoros/Harlingen-Weslaco-Brownsville-McAllen market before the deadline to make such prepayment. As a result, the Company currently expects to stop broadcasting on this station at the end of the current license term, which expires on December 31, 2021.  As such, the Company determined that triggering events had occurred during the third quarter of 2019 that required an interim impairment assessment for this broadcast license.

 

 

Financial Results


Three-Month period ended September 30, 2019 Compared to Three-Month Period Ended
September 30, 2018
(Unaudited)



Three-Month Period



Ended September 30,



2019



2018



% Change


Net revenue

$

68,816



$

74,575




(8)

%

Cost of revenue - digital media (1)


9,942




13,240




(25)

%

Operating expenses (1)


43,264




44,092




(2)

%

Corporate expenses (1)


6,785




6,913




(2)

%

Depreciation and amortization


4,190




4,094




2

%

Change in fair value contingent consideration


-




(114)




(100)

%

Impairment charge


9,075




-



*


Foreign currency (gain) loss


927




335




177

%

Other operating (gain) loss


(1,572)




(327)




381

%













Operating income (loss)


(3,795)




6,342



*


Interest expense, net


(2,712)




(3,062)




(11)

%

Dividend income


241




457




(47)

%













Income (loss) before income taxes


(6,266)




3,737



*














Income tax benefit (expense)


(5,920)




(1,443)




310

%

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


(12,186)




2,294



*


Equity in net income (loss) of nonconsolidated affiliates, net of tax


(31)




(79)




(61)

%

Net income (loss)

$

(12,217)



$

2,215



*




(1)

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

 

Net revenue decreased to $68.8 million for the three-month period ended September 30, 2019 from $74.6 million for the three-month period ended September 30, 2018, a decrease of $5.8 million. Of the overall decrease, approximately $4.8 million was attributable to our digital segment and was primarily due to declines in both international and domestic revenue.  This decline in digital revenue is being driven by a trend whereby revenue is shifting more to automated self-service platforms, referred to in our industry as programmatic revenue. Additionally, approximately $1.0 million of the overall decrease was attributable to our radio segment and was primarily due to a decrease in national advertising revenue, as a result in part of ratings declines and changing demographic preferences of audiences, as well as the absence of revenue from the 2018 FIFA World Cup revenue in 2019 compared to 2018 and a decrease in political advertising revenue, which has not been material in 2019. Revenue in our television segment remained constant with increases in revenue from spectrum usage rights and retransmission consent revenue, partially offset by a decrease in local advertising revenue, as a result in part of ratings declines and changing demographic preferences of audiences. Additionally, there is a trend for advertising to move increasingly from traditional media, such as television, to new media, such as digital media. The increases in revenue from spectrum usage rights and retransmission consent revenue were also partially offset by a decrease in political advertising revenue, which has not been material in 2019.

Cost of revenue in our digital segment decreased to $9.9 million for the three-month period ended September 30, 2019 from $13.2 million for the three-month period ended September 30, 2018, a decrease of $3.3 million, primarily due to a decrease in expenses associated with the decrease in revenue in our digital segment and a strategic shift in our digital business designed to focus on generating revenue with lower associated costs to produce higher margins.

Operating expenses decreased to $43.3 million for the three-month period ended September 30, 2019 from $44.1 million for the three-month period ended September 30, 2018, a decrease of $0.8 million. The decrease was primarily due to the decrease in expenses associated with the decrease in revenue and a decrease in salary expense, partially offset by an increase in severance expense in our radio segment and an increase in fees due to networks related to retransmission consent agreements in our television segment.

Corporate expenses decreased to $6.8 million for the three-month period ended September 30, 2019 from $6.9 million for the three-month period ended September 30, 2018, a decrease of $0.1 million. The decrease was primarily due to a decrease in non-cash stock-based compensation.

Impairment charge related to goodwill in our digital reporting unit was $5.3 million for the three-month period ended September 30, 2019. Impairment charge related to indefinite life intangible assets in our television reporting unit was $3.5 million for the three-month period ended September 30, 2019. These write-downs were made pursuant to Accounting Standards Codification (ASC) 350, Intangibles – Goodwill and Other, which requires that goodwill and certain intangible assets be tested for impairment at least annually, or more frequently if events or changes in circumstances indicate the assets might be impaired. We also recorded an impairment charge of $0.2 million to reflect the fair market value of our assets held for sale.

Our historical revenues have primarily been denominated in U.S. dollars, and the majority of our current revenues continue to be, and are expected to remain, denominated in U.S. dollars. However, our operating expenses are generally denominated in the currencies of the countries in which our operations are located, and we have operations in countries other than the U.S., primarily related to our Headway business. As a result, we have operating expense, attributable to foreign currency loss, that is primarily related to the operations related to our Headway business. We had foreign currency loss of $0.9 million for the three-month period ended September 30, 2019 compared to a foreign currency loss of $0.3 million for the three-month period ended September 30, 2018. Foreign currency loss was primarily due to currency fluctuations that affected our digital segment operations located outside the United States, primarily related to our Headway business.

 

Nine-Month Period Ended September 30, 2019 Compared to Nine-Month Period Ended
September 30, 2018
(Unaudited)



Nine-Month Period



Ended September 30,



2019



2018



% Change


Net revenue

$

202,737



$

215,742




(6)

%

Cost of revenue - digital media (1)


26,443




35,249




(25)

%

Operating expenses (1)


129,208




132,209




(2)

%

Corporate expenses (1)


20,180




19,154




5

%

Depreciation and amortization


12,412




12,052




3

%

Change in fair value contingent consideration


(2,376)




1,073



*


Impairment charge


31,443




-



*


Foreign currency (gain) loss


977




531




84

%

Other operating (gain) loss


(5,165)




(622)




730

%













Operating income (loss)


(10,385)




16,096



*


Interest expense, net


(7,980)




(8,509)




(6)

%

Dividend income


747




1,002




(25)

%













Income (loss) before income taxes


(17,618)




8,589



*














Income tax benefit (expense)


(9,265)




(3,164)




193

%

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


(26,883)




5,425



*


Equity in net income (loss) of nonconsolidated affiliates, net of tax


(189)




(177)




7

%

Net income (loss)

$

(27,072)



$

5,248



*




(1)

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

Net revenue decreased to $202.7 million for the nine-month period ended September 30, 2019 from $215.7 million for the nine-month period ended September 30, 2018, a decrease of $13.0 million. Of the overall decrease, approximately $12.3 million was attributable to our digital segment and was primarily due to declines in both international and domestic revenue.  This decline in digital revenue is being driven by a trend whereby revenue is shifting more to programmatic revenue. Additionally, approximately $6.0 million of the overall decrease was attributable to our radio segment and was primarily due to decreases in local and national advertising revenue, as a result in part of ratings declines and changing demographic preferences of audiences as well as the absence of revenue from the 2018 FIFA World Cup revenue in 2019 compared to 2018 and a decrease in political advertising revenue, which has not been material in 2019. The overall decrease in revenue was partially offset by an increase in our television segment of approximately $5.3 million and was primarily due to increases in revenue from spectrum usage rights and retransmission consent revenue, partially offset by a decrease in local advertising revenue, as a result in part of ratings declines and changing demographic preferences of audiences and a trend for advertising to move increasingly from traditional media, such as television, to new media, such as digital media. The increase in revenue in our television segment was also partially offset by a decrease in political advertising revenue, which has not been material in 2019.

Cost of revenue in our digital segment decreased to $26.4 million for the nine-month period ended September 30, 2019 from $35.2 million for the nine-month period ended September 30, 2018, a decrease of $8.8 million, primarily due to a decrease in expenses associated with the decrease in revenue in our digital segment and a strategic shift in our digital business designed to focus on generating revenue with lower associated costs to produce higher margins.

Operating expenses decreased to $129.2 million for the nine-month period ended September 30, 2019 from $132.2 million for the nine-month period ended September 30, 2018, a decrease of $3.0 million. The decrease was primarily due to the decrease in expenses associated with the decrease in revenue and a decrease in salary expense, partially offset by an increase in severance expense in our digital and radio segments and an increase in fees due to networks related to retransmission consent agreements in our television segment.

Corporate expenses increased to $20.2 million for the nine-month period ended September 30, 2019 from $19.2 million for the nine-month period ended September 30, 2018, an increase of $1.0 million. The increase was primarily due to an increase in audit fees that we incurred in connection with the audit of our 2018 financial statements, partially offset by a decrease in non-cash stock-based compensation. 

Impairment charge related to goodwill in our digital reporting unit was $27.7 million for the nine-month period ended September 30, 2019. Impairment charge related to indefinite life intangible assets in our television reporting unit was $3.5 million for the nine-month period ended September 30, 2019. These write-downs were made pursuant to Accounting Standards Codification (ASC) 350, Intangibles – Goodwill and Other, which requires that goodwill and certain intangible assets be tested for impairment at least annually, or more frequently if events or changes in circumstances indicate the assets might be impaired. We also recorded an impairment charge of $0.2 million to reflect the fair market value of our assets held for sale.

Our historical revenues have primarily been denominated in U.S. dollars, and the majority of our current revenues continue to be, and are expected to remain, denominated in U.S. dollars. However, our operating expenses are generally denominated in the currencies of the countries in which our operations are located, and we have operations in countries other than the U.S., primarily related to our Headway business. As a result, we have operating expense, attributable to foreign currency loss, that is primarily related to the operations related to our Headway business. We had foreign currency loss of $1.0 million for the nine-month period ended September 30, 2019 compared to a foreign currency loss of $0.5 million for the nine-month period ended September 30, 2018. Foreign currency loss was primarily due to currency fluctuations that affected our digital segment operations located outside the United States, primarily related to our Headway business.

Segment Results

     The following represents selected unaudited segment information:



Three-Month Period



Nine-Month Period



Ended September 30,



Ended September 30,




2019




2018



% Change




2019




2018



% Change


Net Revenue
























Television

$

36,421



$

36,361




0

%


$

112,745



$

107,383




5

%

Radio


14,783




15,783




(6)

%



41,104




47,126




(13)

%

Digital


17,612




22,431




(21)

%



48,888




61,233




(20)

%

Total

$

68,816



$

74,575




(8)

%


$

202,737



$

215,742




(6)

%

























Cost of Revenue - digital media (1)
























Digital

$

9,942



$

13,240




(25)

%


$

26,443



$

35,249




(25)

%

























Operating Expenses (1)
























Television


21,158




20,462




3

%



62,690




62,573




0

%

Radio


14,141




14,676




(4)

%



42,348




45,393




(7)

%

Digital


7,965




8,954




(11)

%



24,170




24,243




(0)

%

Total

$

43,264



$

44,092




(2)

%


$

129,208



$

132,209




(2)

%

























Corporate Expenses (1)

$

6,785



$

6,913




(2)

%


$

20,180



$

19,154




5

%

























Consolidated adjusted EBITDA (1)

$

9,142



$

11,299




(19)

%


$

29,778



$

33,102




(10)

%



(1)

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

Entravision Communications Corporation will hold a conference call to discuss its 2019 third quarter results on November 7, 2019 at 5 p.m. Eastern Time. To access the conference call, please dial 412-317-5440 ten minutes prior to the start time. The call will be webcast live and archived for replay on the investor relations portion of the Company's web site located at www.entravision.com.

Entravision Communications Corporation is a leading global media company that, through its television and radio segments, reaches and engages U.S. Hispanics across acculturation levels and media channels. Additionally, our digital segment, whose operations are located primarily in Spain, Mexico, and Argentina and other countries in Latin America, reaches a global market. The Company's expansive portfolio encompasses integrated marketing and media solutions, comprised of television, radio, and digital properties and data analytics services. Entravision has 55 primary television stations and is the largest affiliate group of both the Univision and UniMás television networks. Entravision also owns and operates 49 primarily Spanish-language radio stations featuring nationally recognized talent, as well as the Entravision Audio Network and Entravision Solutions, a coast-to-coast national spot and network sales and marketing organization representing Entravision's owned and operated, as well as its affiliate partner, radio stations. Entravision's Pulpo digital advertising unit is the #1-ranked online advertising platform in Hispanic reach according to comScore Media Metrix®, and Entravision's digital group also includes Headway, a leading provider of mobile, programmatic, data and performance digital marketing solutions primarily in the United States, Mexico and other markets in Latin America. Entravision shares of Class A Common Stock are traded on The New York Stock Exchange under the symbol: EVC.

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

# # #
(Financial Table Follows)

 

Entravision Communications Corporation
Consolidated Balance Sheets
(In thousands; unaudited)



September 30,



December 31,



2019



2018


















ASSETS








Current assets








Cash and cash equivalents

$

48,705



$

46,733


Marketable securities


107,486




132,424


Restricted cash


734




732


Trade receivables, net of allowance for doubtful accounts


68,809




79,308


Assets held for sale


950




1,179


Prepaid expenses and other current assets


13,621




10,672


Total current assets


240,305




271,048


Property and equipment, net


79,392




64,939


Intangible assets subject to amortization, net


18,019




22,598


Intangible assets not subject to amortization


251,098




254,598


Goodwill


46,511




74,292


Operating leases right of use asset


45,058




-


Other assets


7,459




2,934


Total assets

$

687,842



$

690,409


















LIABILITIES AND STOCKHOLDERS' EQUITY








Current liabilities








Current maturities of long-term debt

$

3,000



$

3,000


Accounts payable and accrued expenses


46,766




51,034


Operating lease liabilities


8,843




-


Total current liabilities


58,609




54,034


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


238,400




240,541


Long-term operating lease liabilities


42,672




-


Other long-term liabilities


7,531




16,418


Deferred income taxes


54,654




46,684


Total liabilities


401,866




357,677










Stockholders' equity








Class A common stock


6




6


Class B common stock


2




2


Class U common stock


1




1


Additional paid-in capital


841,567




862,299


Accumulated deficit


(555,236)




(528,164)


Accumulated other comprehensive income (loss)


(364)




(1,412)


Total stockholders' equity


285,976




332,732


Total liabilities and stockholders' equity

$

687,842



$

690,409


 

 

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,




2019



2018



2019



2018



















Net revenue


$

68,816



$

74,575



$

202,737



$

215,742



















Expenses:

















Cost of revenue - digital media



9,942




13,240




26,443




35,249


Direct operating expenses



30,807




31,694




89,392




93,844


Selling, general and administrative expenses



12,457




12,398




39,816




38,365


Corporate expenses



6,785




6,913




20,180




19,154


Depreciation and amortization



4,190




4,094




12,412




12,052


Change in fair value contingent consideration



-




(114)




(2,376)




1,073


Impairment charge



9,075




-




31,443




-


Foreign currency (gain) loss



927




335




977




531


Other operating (gain) loss



(1,572)




(327)




(5,165)




(622)





72,611




68,233




213,122




199,646


Operating income (loss)



(3,795)




6,342




(10,385)




16,096


Interest expense



(3,537)




(3,995)




(10,581)




(11,394)


Interest income



825




933




2,601




2,885


Dividend income



241




457




747




1,002


Income (loss) before income taxes



(6,266)




3,737




(17,618)




8,589


Income tax benefit (expense)



(5,920)




(1,443)




(9,265)




(3,164)



















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



(12,186)




2,294




(26,883)




5,425


Equity in net income (loss) of nonconsolidated affiliate, net of tax



(31)




(79)




(189)




(177)


Net income (loss)


$

(12,217)



$

2,215



$

(27,072)



$

5,248



















Basic and diluted earnings per share:

















Net income (loss) per share, basic and diluted


$

(0.14)



$

0.02



$

(0.32)



$

0.06



















Cash dividends declared per common share


$

0.05



$

0.05



$

0.15



$

0.15



















Weighted average common shares outstanding, basic



84,765,694




88,852,342




85,404,250




89,371,750


Weighted average common shares outstanding, diluted



84,765,694




90,122,425




85,404,250




90,574,663


 

Entravision Communications Corporation
Consolidated Statements of Cash Flows
(In thousands; unaudited)



Three-Month Period



Nine-Month Period



Ended September 30,



Ended September 30,



2019



2018



2019



2018


















Cash flows from operating activities:
















Net income (loss)

$

(12,217)



$

2,215



$

(27,072)



$

5,248


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
















Depreciation and amortization


4,190




4,094




12,412




12,052


Impairment charge


9,075




-




31,443




-


Deferred income taxes


5,469




913




6,941




1,942


Non-cash interest


226




290




715




828


Amortization of syndication contracts


125




174




374




526


Payments on syndication contracts


(192)




(156)




(419)




(516)


Equity in net (income) loss of nonconsolidated affiliate


31




79




189




177


Non-cash stock-based compensation


819




1,286




2,454




3,711


(Gain) loss on disposal of property and equipment


(3)




-




158




-


Changes in assets and liabilities:
















(Increase) decrease in accounts receivable


1,084




(592)




10,703




8,578


(Increase) decrease in prepaid expenses and other assets


(3,524)




(663)




(844)




(7,210)


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


(1,267)




(2,059)




(13,568)




(2,839)


Net cash provided by operating activities


3,816




5,581




23,486




22,497


Cash flows from investing activities:
















Proceeds from sale of property and equipment and intangibles


-




-




-




33


Purchases of property and equipment


(7,200)




(6,567)




(21,182)




(12,277)


Purchases of intangible assets


-




-




-




(3,153)


Purchase of a businesses, net of cash acquired


-




41




-




(3,522)


Purchases of marketable securities


(240)




-




(1,400)




(159,403)


Proceeds from marketable securities


6,200




-




27,881




25,000


Purchases of investments


-




(935)




(300)




(970)


Deposits on acquisition


(147)




-




(147)




-


Net cash provided by (used in) investing activities


(1,387)




(7,461)




4,852




(154,292)


Cash flows from financing activities:
















Proceeds from stock option exercises


-




(29)




-




77


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


(22)




-




(773)




(2,239)


Payments on long-term debt


(750)




(750)




(2,250)




(2,250)


Dividends paid


(4,227)




(4,443)




(12,767)




(13,403)


Repurchase of Class A common stock


(1,349)




-




(10,357)




(7,660)


Payment of contingent consideration


-




-




-




(2,015)


Payments of capitalized debt costs


-




-




(225)




-


Net cash used in financing activities


(6,348)




(5,222)




(26,372)




(27,490)


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


(5)




(1)




8




(11)


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


(3,924)




(7,103)




1,974




(159,296)


Cash, cash equivalents and restricted cash:
















Beginning


53,363




109,661




47,465




261,854


Ending

$

49,439



$

102,558



$

49,439



$

102,558


 

Entravision Communications Corporation
Reconciliation of Consolidated Adjusted EBITDA to Cash Flows From Operating Activities
(In thousands; unaudited)


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



Three-Month Period



Nine-Month Period



Ended September 30,



Ended September 30,




2019




2018




2019




2018


















Consolidated adjusted EBITDA (1)

$

9,142



$

11,299



$

29,778



$

33,102


















Interest expense


(3,537)




(3,995)




(10,581)




(11,394)


Interest income


825




933




2,601




2,885


Dividend income


241




457




747




1,002


Income tax expense


(5,920)




(1,443)




(9,265)




(3,164)


Equity in net loss of nonconsolidated affiliates


(31)




(79)




(189)




(177)


Amortization of syndication contracts


(125)




(174)




(374)




(526)


Payments on syndication contracts


192




156




419




516


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


(74)




(156)




(324)




(448)


Non-cash stock-based compensation included in corporate expenses


(745)




(1,130)




(2,130)




(3,263)


Depreciation and amortization


(4,190)




(4,094)




(12,412)




(12,052)


Change in fair value contingent consideration


-




114




2,376




(1,073)


Impairment charge


(9,075)




-




(31,443)






Non-recurring cash severance charge


(492)




-




(1,440)




(782)


Other operating gain (loss)


1,572




327




5,165




622


Net income (loss)


(12,217)




2,215




(27,072)




5,248


















Depreciation and amortization


4,190




4,094




12,412




12,052


Impairment charge


9,075




-




31,443




-


Deferred income taxes


5,469




913




6,941




1,942


Non-cash interest


226




290




715




828


Amortization of syndication contracts


125




174




374




526


Payments on syndication contracts


(192)




(156)




(419)




(516)


Equity in net (income) loss of nonconsolidated affiliate


31




79




189




177


Non-cash stock-based compensation


819




1,286




2,454




3,711


(Gain) loss on disposal of property and equipment


(3)




-




158




-


Changes in assets and liabilities:
















(Increase) decrease in accounts receivable


1,084




(592)




10,703




8,578


(Increase) decrease in prepaid expenses and other assets


(3,524)




(663)




(844)




(7,210)


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


(1,267)




(2,059)




(13,568)




(2,839)


Cash flows from operating activities


3,816




5,581




23,486




22,497




(1)

  Consolidated adjusted EBITDA is defined on page 1.

 

Entravision Communications Corporation
Reconciliation of Free Cash Flow to Cash Flows From Operating Activities
(In thousands; unaudited)


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



Three-Month Period



Nine-Month Period



Ended September 30,



Ended September 30,




2019




2018




2019




2018


Consolidated adjusted EBITDA (1)

$

9,142



$

11,299



$

29,778



$

33,102


Net interest expense (1)


(2,486)




(2,772)




(7,265)




(7,681)


Dividend income


241




457




747




1,002


Cash paid for income taxes


(451)




(530)




(2,324)




(1,222)


Capital expenditures (2)


(7,200)




(6,567)




(21,182)




(12,277)


Non-recurring cash severance charge


(492)




-




(1,440)




(782)


FCC Reimbursement


1,572




327




5,165




622


Free cash flow (1)


326




2,214




3,479




12,764


















Capital expenditures (2)


7,200




6,567




21,182




12,277


Change in fair value of contingent consideration


-




114




2,376




(1,073)


(Gain) loss on disposal of property and equipment


(3)




-




158




-


Changes in assets and liabilities:
















(Increase) decrease in accounts receivable


1,084




(592)




10,703




8,578


(Increase) decrease in prepaid expenses and other assets


(3,524)




(663)




(844)




(7,210)


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


(1,267)




(2,059)




(13,568)




(2,839)


Cash Flows From Operating Activities

$

3,816



$

5,581



$

23,486



$

22,497




(1)

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

(2)

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

 

 

 

Cision

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