SANTA MONICA, Calif., Nov. 7, 2019 /PRNewswire/ — Entravision Communications Corporation (NYSE: 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 |
% |
2019 |
2018 |
% |
||||||||||||||||||
|
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 |
|
(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 |
|
(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 |
|
(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 |
|
(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 |
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 |
|||||||||||
|
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 |
|||||||||||
|
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 |
(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 |
|||||||
|
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 |
||||||||||||||||
|
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 |
(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 |
|||||||||||||||
|
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 |
|||||||||||||||
|
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 |
(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 |
(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 |
|||||||||||||||
|
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 |
(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 |
(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 |
|||||||||||||||
|
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 |
(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. |
View original content:http://www.prnewswire.com/news-releases/entravision-communications-corporation-reports-third-quarter-2019-results-300954320.html
SOURCE Entravision Communications Corporation
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