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Entravision Communications Corporation Reports First Quarter 2023 Results

SANTA MONICA, Calif.–(BUSINESS WIRE)–
Entravision Communications Corporation (NYSE: EVC), a leading global advertising solutions, media and technology company, today announced financial results for the three-month period ended March 31, 2023.

First Quarter 2023 Highlights

Record first quarter revenue
Net revenue up 21% over the prior-year quarter
Net income attributable to common stockholders up 8% over the prior-year quarter
Consolidated EBITDA down 28% compared to the prior-year quarter
Operating cash flow down 31% compared to the prior-year quarter
Free cash flow down 73% compared to the prior-year quarter
Quarterly cash dividend of $0.05 per share
Entered into $275 Million Credit Facility

“Entravision saw continued growth in the first quarter of 2023, with revenue up 21% year-over-year,” said Chris Young, Interim Chief Executive Officer and Chief Financial Officer. “Growth for the quarter was led by our digital segment, which is impressive given difficult macro conditions and decreased political advertising revenue from last year.”

Mr. Young continued, “With a solid balance sheet in place, strong free cash flow generation, and an acute focus on expense management, Entravision is well-equipped to navigate the current economic environment. As we progress through additional quarters, we will continue to seek out opportunities, including acquisitions, that will enhance our digital offerings and strengthen our ability to compete internationally.”

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 June 30, 2023 to shareholders of record as of the close of business on June 16, 2023, and the common stock will trade ex-dividend on June 15, 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.

$275 Million Credit Facility

On March 17, 2023, the Company entered into the 2023 Amended and Restated Credit Facility (the “2023 Credit Facility”), which consists of a $200 million senior secured Term A Facility, which was drawn in full, and a $75 million Revolving Credit Facility, of which $11.5 million was drawn. In addition, the 2023 Amended and Restated Credit Agreement (the “2023 Credit Agreement”) provides that the Company may increase the aggregate principal amount of the 2023 Credit Facility by an additional amount equal to $100 million plus the amount that would result in the Company’s first lien net leverage ratio (as such term is used in the 2023 Credit Agreement) not exceeding 2.25 to 1.0, subject to the Company satisfying certain conditions.

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 9.

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

	Three-Month Period
	Ended March 31,
	2023			2022			% Change
Net revenue	$	239,006		$	197,172		21	%
Cost of revenue – digital (1)		167,756			129,891		29	%
Operating expenses (2)		52,630			43,862		20	%
Corporate expenses (3)		10,502			8,724		20	%
Foreign currency (gain) loss		(956	)		(847	)	13	%

Consolidated EBITDA (4)		13,022			18,113		(28	)%

Free cash flow (5)	$	3,908		$	14,327		(73	)%

Net income (loss)	$	1,699		$	1,887		(10	)%
Net (income) loss attributable to noncontrolling interest	$	342		$	–		*
Net income (loss) attributable to common stockholders	$	2,041		$	1,887		8	%

Net income (loss) per share attributable to common stockholders, basic and diluted	$	0.02		$	0.02		0	%

Weighted average common shares outstanding, basic		87,623,887			86,522,378
Weighted average common shares outstanding, diluted		89,786,585			88,630,216

(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 $1.9 million and $1.0 million of non-cash stock-based compensation for the three-month periods ended March 31, 2023 and 2022, respectively.

(3)		Corporate expenses include $2.2 million and $1.6 million of non-cash stock-based compensation for the three-month periods ended March 31, 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 March 31,
	2023			2022			% Change
Net revenue	$	239,006		$	197,172		21	%
Cost of revenue – digital (1)		167,756			129,891		29	%
Operating expenses (1)		52,630			43,862		20	%
Corporate expenses (1)		10,502			8,724		20	%
Depreciation and amortization		6,471			6,395		1	%
Change in fair value of contingent consideration		(4,065	)		5,100		*
Foreign currency (gain) loss		(956	)		(847	)	13	%
Other operating (gain) loss		–			(119	)	(100	)%

Operating income (loss)		6,668			4,166		60	%
Interest expense, net		(3,168	)		(1,430	)	122	%
Dividend income		18			3		500	%
Realized gain (loss) on marketable securities		(32	)		–		*
Gain (loss) on debt extinguishment		(1,556	)		–		*

Income (loss) before income taxes		1,930			2,739		(30	)%
Income tax benefit (expense)		(231	)		(852	)	(73	)%

Net income (loss)		1,699			1,887		(10	)%
Net (income) loss attributable to noncontrolling interest		342			–		*
Net income (loss) attributable to common stockholders	$	2,041		$	1,887		8	%

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

Net revenue in the first quarter of 2023 totaled $239.0 million, up 21% from $197.2 million in the prior-year period. Of the overall increase, $42.8 million was attributable to our digital segment and was primarily due to advertising revenue growth from our digital commercial partnerships business, and due to our VIEs, which did not contribute to our financial results in our digital segment in the comparable period. The overall increase was partially offset by a decrease of $0.6 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 $0.4 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 first quarter of 2023 totaled $167.8 million, up 29% from $129.9 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 our VIEs, which did not contribute to our financial results in our digital segment in the comparable period.

Operating expenses in the first quarter of 2023 totaled $52.6 million, up 20% from $43.9 million in the prior-year period. Of the overall increase, $6.3 million was attributable to our digital segment and was primarily due to our VIEs, which did not contribute to our financial results in our digital segment in the comparable period, an increase in salary expense, an increase in non-cash stock-based compensation, and an increase in expenses associated with the increase in digital advertising revenue. 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, increased rent expense in the temporary office space until the move to our new permanent offices is completed, and an increase in bad debt expense. In addition, of the overall increase in operating expenses, $1.6 million was attributable to our audio segment primarily due to increases in salaries and music license fees, and increased rent expense in the temporary office space until the move to our new permanent offices is completed. The increases in non-cash stock-based compensation are mainly a result of the 2023 annual restricted stock unit (“RSU”) grant, which was made in February 2023 compared to the 2022 annual grant, which was made in December 2022.

Corporate expenses in the first quarter of 2023 totaled $10.5 million, up 20% from $8.7 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, which was made in February 2023 compared to the 2022 annual grant, which was made in December 2022, an increase in professional service fees, and an increase in audit fees.

Balance Sheet and Related Metrics

Cash and marketable securities as of March 31, 2023 totaled $179.8 million. Total debt under the Company’s credit agreement was $211.5 million. Net of $50 million of cash and marketable securities, total leverage as defined in the Company’s credit agreement was 1.7 times as of March 31, 2023. Net of total cash and marketable securities, total leverage was 0.3 times.

Unaudited Segment Results (In thousands)

	Three-Month Period
	Ended March 31,
	2023		2022		% Change
Net Revenue
Digital	$	196,482	$	153,711	28	%
Television		30,312		30,867	(2	)%
Audio		12,212		12,594	(3	)%
Total	$	239,006	$	197,172	21	%

Cost of Revenue – digital (1)
Digital	$	167,756	$	129,891	29	%

Operating Expenses (1)
Digital		21,539		15,235	41	%
Television		20,099		19,240	4	%
Audio		10,992		9,387	17	%
Total	$	52,630	$	43,862	20	%

Corporate Expenses (1)	$	10,502	$	8,724	20	%

Consolidated EBITDA (1)	$	13,022	$	18,113	(28	)%

(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 first quarter 2023 results on Thursday, May 4, 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 10176751. 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, 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.

Entravision Communications Corporation
Consolidated Statements of Operations
(In thousands, except share and per share data)
(Unaudited)

	Three-Month Period
	Ended March 31,
	2023			2022
Net revenue	$	239,006		$	197,172

Expenses:
Cost of revenue – digital		167,756			129,891
Direct operating expenses		29,862			27,823
Selling, general and administrative expenses		22,768			16,039
Corporate expenses		10,502			8,724
Depreciation and amortization		6,471			6,395
Change in fair value of contingent consideration		(4,065	)		5,100
Foreign currency (gain) loss		(956	)		(847	)
Other operating (gain) loss		—			(119	)
		232,338			193,006
Operating income (loss)		6,668			4,166
Interest expense		(4,028	)		(1,836	)
Interest income		860			406
Dividend income		18			3
Realized gain (loss) on marketable securities		(32	)		—
Gain (loss) on debt extinguishment		(1,556	)		—
Income (loss) before income taxes		1,930			2,739
Income tax benefit (expense)		(231	)		(852	)

Net income (loss)		1,699			1,887
Net (income) loss attributable to noncontrolling interest		342			—
Net income (loss) attributable to common stockholders	$	2,041		$	1,887

Basic and diluted earnings per share:
Net income (loss) per share attributable to common stockholders, basic and diluted	$	0.02		$	0.02

Cash dividends declared per common share, basic and diluted	$	0.05		$	0.03

Weighted average common shares outstanding, basic		87,623,887			86,522,378
Weighted average common shares outstanding, diluted		89,786,585			88,630,216

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

	March 31,			December 31,
	2023			2022
ASSETS
Current assets
Cash and cash equivalents	$	141,455		$	110,691
Marketable securities		38,367			44,528
Restricted cash		757			753
Trade receivables, net of allowance for doubtful accounts		191,486			224,713
Assets held for sale		301			—
Prepaid expenses and other current assets		30,135			27,238
Total current assets		402,501			407,923
Property and equipment, net		65,868			61,362
Intangible assets subject to amortization, net		58,908			61,811
Intangible assets not subject to amortization		207,453			207,453
Goodwill		86,991			86,991
Deferred income taxes		2,591			2,591
Operating leases right of use asset		45,883			44,413
Other assets		8,088			8,297
Total assets	$	878,283		$	880,841


LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Current maturities of long-term debt	$	5,778		$	5,256
Accounts payable and accrued expenses		233,791			237,415
Operating lease liabilities		6,029			5,570
Total current liabilities		245,598			248,241
Long-term debt, less current maturities, net of unamortized debt issuance costs		207,016			207,292
Long-term operating lease liabilities		44,580			42,151
Other long-term liabilities		27,168			30,198
Deferred income taxes		67,357			67,590
Total liabilities		591,719			595,472

Stockholders’ equity
Class A common stock		8			8
Class U common stock		1			1
Additional paid-in capital		776,198			776,298
Accumulated deficit		(502,334	)		(504,375	)
Accumulated other comprehensive income (loss)		(1,368	)		(1,510	)
Total stockholders’ equity		272,505			270,422
Noncontrolling interest		14,059			14,947
Total equity		286,564			285,369
Total liabilities and equity	$	878,283		$	880,841

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

	Three-Month Period
	Ended March 31,
	2023			2022
Cash flows from operating activities:
Net income (loss)	$	1,699		$	1,887
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		6,471			6,395
Deferred income taxes		(205	)		(359	)
Non-cash interest		133			280
Amortization of syndication contracts		120			116
Payments on syndication contracts		(120	)		(118	)
Non-cash stock-based compensation		4,053			2,573
(Gain) loss on marketable securities		32			—
(Gain) loss on disposal of property and equipment		68			(151	)
(Gain) loss on debt extinguishment		1,556			–
Change in fair value of contingent consideration		(4,065	)		5,100
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		33,157			29,380
(Increase) decrease in prepaid expenses and other current assets, operating leases right of use asset and other assets		948			(2,405	)
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(7,152	)		10,521
Net cash provided by operating activities		36,695			53,219
Cash flows from investing activities:
Proceeds from sale of property and equipment and intangibles		—			164
Purchases of property and equipment		(6,750	)		(1,547	)
Purchases of marketable securities		(9,397	)		(85,517	)
Proceeds from sale of marketable securities		15,704			—
Purchases of investments		(120	)		—
Net cash used in investing activities		(563	)		(86,900	)
Cash flows from financing activities:
Proceeds from stock option exercises		313			218
Tax payments related to shares withheld for share-based compensation plans		(80	)		(257	)
Payments on debt		(211,748	)		(750	)
Dividends paid		(4,932	)		(2,167	)
Repurchase of Class A common stock		—			(7,142	)
Payment of contingent consideration		—			(14,730	)
Principal payments under finance lease obligation		(38	)		(10	)
Proceeds from borrowings on debt		212,405			—
Payments for debt issuance costs		(1,285	)		—
Net cash used in financing activities		(5,365	)		(24,838	)
Effect of exchange rates on cash, cash equivalents and restricted cash		1			(1	)
Net increase (decrease) in cash, cash equivalents and restricted cash		30,768			(58,520	)
Cash, cash equivalents and restricted cash:
Beginning		111,444			185,843
Ending	$	142,212		$	127,323

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
	Ended March 31,
	2023			2022

Consolidated EBITDA (1)	$	13,022		$	18,113
EBITDA attributable to noncontrolling interest		230			–
Interest expense		(4,028	)		(1,836	)
Interest income		860			406
Dividend income		18			3
Realized gain (loss) on marketable securities		(32	)		–
Income tax expense		(231	)		(852	)
Amortization of syndication contracts		(120	)		(116	)
Payments on syndication contracts		120			118
Non-cash stock-based compensation included in direct operating expenses		(1,856	)		(958	)
Non-cash stock-based compensation included in corporate expenses		(2,197	)		(1,615	)
Depreciation and amortization		(6,471	)		(6,395	)
Change in fair value of contingent consideration		4,065			(5,100	)
Non-recurring cash severance charge		(125	)		–
Other operating gain (loss)		–			119
Gain (loss) on debt extinguishment		(1,556	)		–
Net (income) loss attributable to noncontrolling interest		342			–
Net income (loss) attributable to common stockholders		2,041			1,887

Depreciation and amortization		6,471			6,395
Deferred income taxes		(205	)		(359	)
Non-cash interest		133			280
Amortization of syndication contracts		120			116
Payments on syndication contracts		(120	)		(118	)
Non-cash stock-based compensation		4,053			2,573
Realized (gain) loss on marketable securities		32			–
(Gain) loss on debt extinguishment		1,556			–
(Gain) loss on disposal of property and equipment		68			(151	)
Change in fair value of contingent consideration		(4,065	)		5,100
Net income (loss) attributable to noncontrolling interest		(342	)		–
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		33,157			29,380
(Increase) decrease in prepaid expenses and other current assets, operating leases right of use asset and other assets		948			(2,405	)
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(7,152	)		10,521
Cash flows from operating activities		36,695			53,219

(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
	Ended March 31,
	2023			2022
Consolidated EBITDA (1)	$	13,022		$	18,113
Net interest expense (1)		(3,035	)		(1,150	)
Dividend income		18			3
Cash paid for income taxes		(72	)		(1,211	)
Capital expenditures (2)		(6,750	)		(1,547	)
Landlord incentive reimbursement		850			–
Non-recurring cash severance charge		(125	)		–
Other operating gain (loss)		–			119
Free cash flow (1)		3,908			14,327

Capital expenditures (2)		6,750			1,547
Landlord incentive reimbursement		(850	)		–
EBITDA attributable to noncontrolling interest		230			–
(Gain) loss on disposal of property and equipment		68			(151	)
Cash paid for income taxes		72			1,211
Deferred income taxes		(205	)		(359	)
Income tax (expense) benefit		(231	)		(852	)
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		33,157			29,380
(Increase) decrease in prepaid expenses and other current assets, operating leases right of use asset and other assets		948			(2,405	)
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(7,152	)		10,521
Cash Flows From Operating Activities	$	36,695		$	53,219

(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.

May 4, 2023

Entravision Schedules First Quarter 2023 Earnings Release and Conference Call

SANTA MONICA, Calif.–(BUSINESS WIRE)–
Entravision (NYSE: EVC), a leading global advertising solutions, media and technology company, announced that it will release its first quarter 2023 financial results after market close on Thursday, May 4, 2023. The Company will host a conference call that day at 5:00 p.m. Eastern Time to discuss the first quarter 2023 results.

To access the conference call, please dial (844) 836-8739 (U.S.) or (412) 317-5440 (International) ten minutes prior to the start time. The call will also be available via live webcast on the investor relations portion of the Company’s website located at www.entravision.com.

If you cannot listen to the conference call at its scheduled time, there will be a replay available through Thursday, May 18, 2023 which can be accessed by dialing (844) 512-2921 (U.S.) or (412) 317-6671 (International) and entering the passcode 10176751. The webcast will also be archived on the Company’s website.

About Entravision

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, 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.

April 27, 2023

Entravision Communications Corporation Reports Fourth Quarter and Full Year 2022 Results

SANTA MONICA, Calif.–(BUSINESS WIRE)–
Entravision Communications Corporation (NYSE: EVC), a leading global advertising solutions, media and technology company, today announced financial results for the three- and twelve-month periods ended December 31, 2022.

Fourth Quarter and Full Year 2022 Highlights

Record fourth quarter and annual revenue
Record fourth quarter and annual consolidated adjusted EBITDA
Record political advertising revenue compared to prior election cycles, including presidential
Net loss attributable to common stockholders of $1.6 million in the fourth quarter compared to net income attributable to common stockholders of $3.9 million in the prior-year quarter
Net income attributable to common stockholders for the full year down 38% compared to the prior-year
Consolidated adjusted EBITDA up 11% and 17% compared to the prior-year quarter and full year, respectively
Operating cash flow down 93% and up 21% compared to the prior-year quarter and full year, respectively
Free cash flow down 37% and 20% compared to the prior-year quarter and full year, respectively
Quarterly cash dividend increase to $0.05 per share

“We are pleased with our 2022 performance, which marks a record year for Entravision for revenue and consolidated adjusted EBITDA,” said Entravision Interim Chief Executive Officer and Chief Financial Officer, Chris Young. “Our results demonstrate the resiliency and strength of our business through challenging macro conditions, and the successful execution of our strategic plan to create a leading global advertising solutions, media and technology company. We have enhanced our digital segment organically, as well as through strategic partnerships, geographic expansion and accretive acquisitions to bolster our suite of digital services in the large and growing advertising industry. Our complementary non-digital businesses, while a smaller percentage of our revenue portfolio, continue to be an important contributor to our growth. We will continue to leverage our tools, reach, technology and world-class team to meet our clients’ evolving needs and deliver enhanced shareholder value.”

Paul Zevnik, Interim Chair and co-founder said, “The Entravision team mourns the sudden and tragic loss of our late CEO, founder and dear friend, Walter Ulloa. Walter passed unexpectedly on the last day of the most successful year in the company’s history. Since we founded Entravision in 1996, we have developed a clear vision to build a leading global advertising solutions, media and technology company serving diverse demographics with diverse media. Through Walter’s leadership and with the support of a strong leadership team and dedicated entrepreneurs across each of Entravision’s business platforms, we have achieved tremendous growth and transformed the Company’s geographical breadth and media portfolio. Most importantly, we created a company that is a great place to work with a focus on engagement, trust, open communications, community service and involvement, and long-lasting relationships with our key partners. I miss our friend dearly, and the Board is committed to working with management to advance Walter’s vision and execute on our roadmap to deliver enhanced value for our stakeholders and partners.”

Quarterly Cash Dividend

As previously announced, the Company’s 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 approximately $4.4 million. This is double the Company’s previous quarterly dividend of $0.025 in 2022 and returns the dividend to its pre-pandemic level. The quarterly dividend will be payable on March 31, 2023 to shareholders of record as of the close of business on March 16, 2023, and the common stock will trade ex-dividend on March 15, 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 Months Ended							Twelve Months Ended
	December 31,							December 31,
	2022			2021		% Change		2022			2021			% Change
Net revenue	$	296,328		$	233,894	27	%	$	956,209		$	760,192		26	%
Cost of revenue – digital (1)		191,965			148,399	29	%		623,916			466,517		34	%
Operating expenses (2)		57,249			48,065	19	%		197,776			173,034		14	%
Corporate expenses (3)		22,635			11,237	101	%		49,404			32,993		50	%
Foreign currency (gain) loss		860			54	1493	%		2,972			508		485	%

Consolidated adjusted EBITDA (4)		36,524			32,856	11	%		103,090			88,033		17	%

Free cash flow (5)	$	19,299		$	30,875	(37	)%	$	63,325		$	78,706		(20	)%

Net income (loss)	$	725		$	3,868	(81	)%	$	20,169		$	35,230		(43	)%
Net (income) loss attributable to redeemable noncontrolling interest	$	–		$	–	*		$	–		$	(5,938	)	(100	)%
Net (income) loss attributable to noncontrolling interest	$	(2,353	)	$	–	*		$	(2,050	)	$	–		*
Net income (loss) attributable to common stockholders	$	(1,628	)	$	3,868	*		$	18,119		$	29,292		(38	)%

Net income (loss) per share attributable to common stockholders, basic	$	(0.02	)	$	0.05	*		$	0.21		$	0.34		(38	)%
Net income (loss) per share attributable to common stockholders, diluted	$	(0.02	)	$	0.04	*		$	0.21		$	0.33		(36	)%

Weighted average common shares outstanding, basic		85,158,189			85,579,385				85,391,163			85,301,603
Weighted average common shares outstanding, diluted		85,158,189			88,556,177				87,769,762			87,910,603

(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 $2.8 million and $2.3 million of non-cash stock-based compensation for the three-month periods ended December 31, 2022 and 2021, respectively, and $5.7 million and $3.2 million of non-cash stock-based compensation for the twelve-month periods ended December 31, 2022 and 2021, respectively.
(3)		Corporate expenses include $9.2 million and $4.0 million of non-cash stock-based compensation for the three-month periods ended December 31, 2022 and 2021, respectively, and $14.3 million and $6.4 million of non-cash stock-based compensation for the twelve-month periods ended December 31, 2022 and 2021, respectively.
(4)		Consolidated adjusted EBITDA means net income (loss) plus gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation included in operating and corporate expenses, net interest expense, other operating gain (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from the Federal Communications Commission, or FCC, spectrum incentive auction less related expenses, expenses associated with investments, EBITDA attributable to noncontrolling and redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings. We use the term consolidated adjusted EBITDA because that measure is defined in the agreement governing our current credit facility (“the 2017 Credit Facility”) and does not include gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation, net interest expense, other income (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from FCC spectrum incentive auction less related expenses, expenses associated with investments, EBITDA attributable to noncontrolling and redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings.
(5)		Free cash flow is defined as consolidated adjusted EBITDA less cash paid for income taxes, net interest expense, capital expenditures and non-recurring cash expenses plus dividend income, and other operating gain (loss). Net interest expense is defined as interest expense, less non-cash interest expense relating to amortization of debt finance costs, and less interest income.

Unaudited Financial Results (In thousands)
	Three Months Ended
	December 31,
	2022			2021			% Change
Net revenue	$	296,328		$	233,894		27	%
Cost of revenue – digital (1)		191,965			148,399		29	%
Operating expenses (1)		57,249			48,065		19	%
Corporate expenses (1)		22,635			11,237		101	%
Depreciation and amortization		6,485			6,261		4	%
Change in fair value of contingent consideration		7,400			8,224		(10	)%
Impairment charge		1,600			1,419		13	%
Foreign currency (gain) loss		860			54		1493	%
Other operating (gain) loss		1,393			(2,131	)	*

Operating income (loss)		6,741			12,366		(45	)%
Interest expense, net		(2,703	)		(1,723	)	57	%
Dividend income		—			2		(100	)%
Realized gain (loss) on marketable securities		(59	)		—		*

Income before income taxes		3,979			10,645		(63	)%
Income tax (expense) benefit		(3,254	)		(6,777	)	(52	)%

Net income (loss)		725			3,868		(81	)%
Net (income) loss attributable to noncontrolling interest		(2,353	)		—		*
Net income (loss) attributable to common stockholders	$	(1,628	)	$	3,868		*

(1)

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

Net revenue in the fourth quarter of 2022 totaled $296.3 million, up 27% from $233.9 million in the prior-year period. Of the overall increase, approximately $52.6 million was attributable to our digital segment and was primarily due to advertising revenue growth from our digital commercial partnerships business. In addition, the increase in net revenue in our digital segment was due to our investments in variable interest entities in 2022, which did not contribute to our results of operations in the comparable prior-year period. In addition, of the overall increase, approximately $5.6 million was attributable to our television segment, primarily due to an increase in political advertising revenue, partially offset by decreases in local and national advertising revenue. These decreases were mainly attributed to the expiration of our Univision and UniMás network affiliation agreements in Orlando, Tampa and Washington, D.C. on December 31, 2021. Additionally, of the overall increase, approximately $4.2 million was attributable to our audio segment, primarily due to increases in political advertising revenue and national advertising revenue, partially offset by a decrease in local advertising revenue.

Cost of revenue in the fourth quarter of 2022 totaled $192.0 million, up 29% from $148.4 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 our investments in variable interest entities in 2022, which did not contribute to our results of operations in the comparable prior-year period.

Operating expenses in the fourth quarter of 2022 totaled $57.2 million, up 19% from $48.1 million in the prior-year period. Of the overall increase, approximately $7.0 million was attributable to our digital segment and was primarily due to an increase in expenses associated with the increase in digital advertising revenue, an increase in salary expense and non-cash stock-based compensation, and an increase due to our investments in variable interest entities in 2022, which did not contribute to our results of operations in the comparable prior-year period. In addition, of the overall increase in operating expenses, approximately $1.1 million was attributable to our television segment primarily due to an increase in rent expense, an increase in bad debt expense and an increase in non-cash stock-based compensation, partially offset by a decrease in expenses associated with the decrease in local and national advertising revenue. Additionally, of the overall increase in operating expenses, approximately $1.0 million was attributable to our audio segment primarily due to an increase in expenses associated with the increase in national advertising revenue and an increase in rent expense.

Corporate expenses in the fourth quarter of 2022 totaled $22.6 million, up 101% from $11.2 million in the prior-year period. The increase was primarily due to $8.1 million of severance related expense incurred upon the passing of our late Chief Executive Officer, and due to increases in non-cash stock-based compensation and an increase in salaries.

Unaudited Financial Results (In thousands)
	Twelve Months Ended
	December 31,
	2022			2021			% Change
Net revenue	$	956,209		$	760,192		26	%
Cost of revenue – digital (1)		623,916			466,517		34	%
Operating expenses (1)		197,776			173,034		14	%
Corporate expenses (1)		49,404			32,993		50	%
Depreciation and amortization		25,697			22,420		15	%
Change in fair value of contingent consideration		14,210			8,224		73	%
Impairment charge		1,600			3,023		(47	)%
Foreign currency (gain) loss		2,972			508		485	%
Other operating (gain) loss		382			(6,998	)	*

Operating income (loss)		40,252			60,471		(33	)%
Interest expense, net		(8,012	)		(6,775	)	18	%
Dividend income		20			213		(91	)%
Realized gain (loss) on marketable securities		(532	)		—		*

Income before income taxes		31,728			53,909		(41	)%
Income tax (expense) benefit		(11,559	)		(18,679	)	(38	)%

Net income (loss)		20,169			35,230		(43	)%
Net (income) loss attributable to redeemable noncontrolling interest		—			(5,938	)	(100	)%
Net (income) loss attributable to noncontrolling interest		(2,050	)		—		*
Net income (loss) attributable to common stockholders	$	18,119		$	29,292		(38	)%

(1)

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

Net revenue for the year ended December 31, 2022 totaled $956.2 million, up 26% from $760.2 million in the prior-year period. Of the overall increase, approximately $191.8 million was attributable to our digital segment and was primarily due to advertising revenue growth from our digital commercial partnerships business. In addition, the increase in net revenue in our digital segment was due to our investments in variable interest entities in 2022 and our acquisitions in 2021, which did not contribute to our results of operations for the full prior-year period. In addition, of the overall increase, approximately $6.4 million was attributable to our audio segment primarily due to increases in political advertising revenue and local advertising revenue, partially offset by a decrease in national advertising revenue. The overall increase was partially offset by a decrease of approximately $2.1 million attributable to our television segment, primarily due to decreases in local and national advertising revenue, a decrease in spectrum usage rights revenue, and a decrease in retransmission consent revenue. These decreases were mainly attributed to the expiration of our Univision and UniMás network affiliation agreements in Orlando, Tampa and Washington, D.C. on December 31, 2021. The decrease in our television segment revenue was partially offset by an increase in political advertising revenue.

Cost of revenue for the year ended December 31, 2022 totaled $623.9 million, up 34% from $466.5 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 our investments in variable interest entities in 2022 and our acquisitions in 2021, which did not contribute to our results of operations for the full prior-year period.

Operating expenses for the year ended December 31, 2022 totaled $197.8 million, up 14% from $173.0 million in the prior-year period. Of the overall increase, approximately $22.5 million was attributable to our digital segment and was primarily due to an increase in expenses associated with the increase in digital advertising revenue, an increase in salary expense and non-cash stock-based compensation, and an increase due to our investments in variable interest entities in 2022 and our acquisitions in 2021, which did not contribute to our results of operations for the full prior-year period. In addition, of the overall increase in operating expenses, approximately $0.6 million was attributable to our television segment primarily due to an increase in rent expense, an increase in bad debt expense and an increase in non-cash stock-based compensation, partially offset by a decrease in expenses associated with the decrease in local and national advertising revenue. Additionally, of the overall increase in operating expenses, approximately $1.7 million was attributable to our audio segment primarily due to an increase in expenses associated with the increase in local advertising revenue and an increase in rent expense.

Corporate expenses for the year ended December 31, 2022 totaled $49.4 million, up 50% from $33.0 million in the prior-year period. The increase was primarily due to $8.1 million of severance related expense incurred upon the passing of our late Chief Executive Officer, and due to increases in non-cash stock-based compensation and an increase in salaries.

Balance Sheet and Related Metrics

Cash and marketable securities as of December 31, 2022 totaled approximately $155.2 million. Total debt under the Company’s credit agreement was $209.3 million. Net of $75 million of cash and marketable securities, total leverage as defined in the Company’s credit agreement was 1.3 times as of December 31, 2022. Net of total cash and marketable securities, total leverage was 0.5 times.

Unaudited Segment Results (In thousands)
	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2022		2021		% Change		2022		2021		% Change
Net Revenue
Digital	$	230,137	$	177,512	30	%	$	747,103	$	555,338	35	%
Television		45,812		40,241	14	%		144,730		146,839	(1	)%
Audio		20,379		16,141	26	%		64,376		58,015	11	%
Total	$	296,328	$	233,894	27	%	$	956,209	$	760,192	26	%

Cost of Revenue – Digital (1)	$	191,965	$	148,399	29	%	$	623,916	$	466,517	34	%

Operating Expenses (1)
Digital	$	22,553	$	15,540	45	%	$	74,130	$	51,604	44	%
Television		22,989		21,849	5	%		81,958		81,397	1	%
Audio		11,707		10,676	10	%		41,688		40,033	4	%
Total	$	57,249	$	48,065	19	%	$	197,776	$	173,034	14	%

Corporate Expenses (1)	$	22,635	$	11,237	101	%	$	49,404	$	32,993	50	%

Foreign currency (gain) loss	$	860	$	54	1493	%	$	2,972	$	508	485	%

Consolidated adjusted EBITDA (1)	$	36,524	$	32,856	11	%	$	103,090	$	88,033	17	%

(1)

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

Notice of Conference Call

Entravision Communications Corporation will hold a conference call to discuss its fourth quarter and full year 2022 results on Thursday, March 9, 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 10176187. 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 leading global advertising, media and ad-tech solutions company connecting brands to consumers by representing top platforms and publishers. Our dynamic portfolio includes digital, television and audio offerings. Digital, our largest revenue segment, is comprised of four business units: our digital sales representation business; Smadex, our programmatic ad purchasing platform; our branding and mobile performance solutions business; and our digital audio business. Through our digital sales representation business, we connect global media companies such as Meta, Twitter, TikTok and Spotify with advertisers in primarily emerging growth markets worldwide. Smadex is our mobile-first demand side platform, enabling advertisers to execute performance campaigns using machine learning. We also offer a branding and mobile performance solutions business, which provides managed services to advertisers looking to connect with global consumers, primarily on mobile devices, and our digital audio business provides digital audio advertising solutions for advertisers in the Americas. In addition to digital, Entravision has 49 television stations and is the largest affiliate group of the Univision and UniMás television networks. Entravision also manages 45 primarily Spanish-language radio stations that feature nationally recognized, Emmy award-winning talent. Shares of Entravision Class A Common Stock trade on the NYSE under ticker: EVC. Learn more about our offerings at entravision.com or connect with us on LinkedIn and Facebook.

Forward-Looking Statements

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

Entravision Communications Corporation
Consolidated Statements of Operations
(In thousands, except share and per share data)
(Unaudited)

	Three-Month Period						Twelve-Month Period
	Ended December 31,						Ended December 31,
	2022			2021			2022			2021
Net revenue	$	296,328		$	233,894		$	956,209		$	760,192
Expenses:
Cost of revenue – digital		191,965			148,399			623,916			466,517
Direct operating expenses		35,106			32,969			122,611			116,449
Selling, general and administrative expenses		22,143			15,096			75,165			56,585
Corporate expenses		22,635			11,237			49,404			32,993
Depreciation and amortization		6,485			6,261			25,697			22,420
Change in fair value of contingent consideration		7,400			8,224			14,210			8,224
Impairment charge		1,600			1,419			1,600			3,023
Foreign currency (gain) loss		860			54			2,972			508
Other operating (gain) loss		1,393			(2,131	)		382			(6,998	)
		289,587			221,528			915,957			699,721
Operating income (loss)		6,741			12,366			40,252			60,471
Interest expense		(3,651	)		(1,733	)		(10,876	)		(7,020	)
Interest income		948			10			2,864			245
Dividend income		—			2			20			213
Realized gain (loss) on marketable securities		(59	)		—			(532	)		—
Income before income taxes		3,979			10,645			31,728			53,909
Income tax (expense) benefit		(3,254	)		(6,777	)		(11,559	)		(18,679	)
Net income (loss)		725			3,868			20,169			35,230
Net (income) loss attributable to redeemable noncontrolling interest		—			—			—			(5,938	)
Net (income) loss attributable to noncontrolling interest		(2,353	)		—			(2,050	)		—
Net income (loss) attributable to common stockholders	$	(1,628	)	$	3,868		$	18,119		$	29,292

Basic and diluted earnings per share:
Net income (loss) per share attributable to common stockholders, basic	$	(0.02	)	$	0.05		$	0.21		$	0.34
Net income (loss) per share attributable to common stockholders, diluted	$	(0.02	)	$	0.04		$	0.21		$	0.33

Cash dividends declared per common share, basic and diluted	$	0.03		$	0.03		$	0.10		$	0.10

Weighted average common shares outstanding, basic		85,158,189			85,579,385			85,391,163			85,301,603
Weighted average common shares outstanding, diluted		85,158,189			88,556,177			87,769,762			87,910,603

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

	December 31,			December 31,
	2022			2021
ASSETS
Current assets
Cash and cash equivalents	$	110,691		$	185,094
Marketable securities		44,528			—
Restricted Cash		753			749
Trade receivables, net of allowance for doubtful accounts		224,713			201,747
Assets held for sale		—			1,963
Prepaid expenses and other current assets		27,238			18,925
Total current assets		407,923			408,478
Property and equipment, net		61,362			62,498
Intangible assets subject to amortization, net		61,811			64,034
Intangible assets not subject to amortization		207,453			209,053
Goodwill		86,991			71,708
Deferred income taxes		2,591			1,462
Operating leases right of use asset		44,413			25,582
Other assets		8,297			8,527
Total assets	$	880,841		$	851,342


LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Current maturities of long-term debt	$	5,256		$	4,903
Accounts payable and accrued expenses		237,415			212,655
Operating lease liabilities		5,570			7,304
Total current liabilities		248,241			224,862
Long-term debt, less current maturities, net of unamortized debt issuance costs		207,292			207,416
Long-term operating lease liabilities		42,151			20,988
Other long-term liabilities		30,198			72,930
Deferred income taxes		67,590			68,220
Total liabilities		595,472			594,416

Stockholders’ equity
Class A common stock		8			6
Class B common stock		—			2
Class U common stock		1			1
Additional paid-in capital		776,298			780,388
Accumulated deficit		(504,375	)		(522,494	)
Accumulated other comprehensive income (loss)		(1,510	)		(977	)
Total stockholders’ equity		270,422			256,926
Noncontrolling interest		14,947			–
Total equity		285,369			256,926
Total liabilities and equity	$	880,841		$	851,342

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

	Three-Month Period						Twelve-Month Period
	Ended December 31,						Ended December 31,
	2022			2021			2022			2021
Cash flows from operating activities:
Net income (loss)	$	725		$	3,868		$	20,169		$	35,230
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		6,485			6,261			25,697			22,420
Impairment charge		1,600			1,419			1,600			3,023
Deferred income taxes		(2,211	)		6,206			(5,362	)		14,554
Non-cash interest		238			153			1,314			604
Amortization of syndication contracts		120			118			468			475
Payments on syndication contracts		(166	)		(119	)		(470	)		(473	)
Non-cash stock-based compensation		12,039			6,295			20,034			9,595
(Gain) loss on marketable securities		59			—			532			—
(Gain) loss on disposal of property and equipment		(37	)		(2,007	)		(636	)		(4,629	)
Change in fair value of contingent consideration		7,400			8,224			14,210			8,224
Changes in assets and liabilities:
(Increase) decrease in trade receivables, net		(31,983	)		(33,215	)		(9,687	)		(49,109	)
(Increase) decrease in prepaid expenses and other current assets		2,200			4,515			2,017			6,782
Increase (decrease) in accounts payable, accrued expenses and other liabilities		4,306			9,755			9,031			18,557
Net cash provided by operating activities		775			11,473			78,917			65,253
Cash flows from investing activities:
Proceeds from sale of property and equipment and intangibles		37			917			2,708			10,348
Purchases of property and equipment		(3,586	)		(1,550	)		(11,468	)		(5,819	)
Purchase of a businesses, net of cash acquired		—			(1,413	)		—			(14,260	)
Investment in variable interest entities, net of cash consolidated		—			—			(5,164	)		—
Purchases of marketable securities		(13,902	)		—			(106,382	)		—
Proceeds from marketable securities		12,946			—			59,814			27,800
Purchases of investments		—			—			—			(800	)
Net cash provided by (used in) investing activities		(4,505	)		(2,046	)		(60,492	)		17,269
Cash flows from financing activities:
Proceeds from stock option exercises		1			2			219			416
Tax payments related to shares withheld for share-based compensation plans		(4,257	)		(4,201	)		(4,524	)		(4,729	)
Payments on long-term debt		(751	)		(750	)		(3,252	)		(3,000	)
Dividends paid		(2,124	)		(2,136	)		(8,539	)		(8,531	)
Repurchase of Class A common stock		—			—			(11,280	)		—
Payment of contingent consideration		—			—			(65,340	)		—
Principal payments under finance lease obligation		(33	)		(126	)		(105	)		(126	)
Payments of capitalized debt offering and issuance costs		—			—			—			(604	)
Net cash used in financing activities		(7,164	)		(7,211	)		(92,821	)		(16,574	)
Effect of exchange rates on cash, cash equivalents and restricted cash		(2	)		(13	)		(3	)		(16	)
Net increase (decrease) in cash, cash equivalents and restricted cash		(10,896	)		2,203			(74,399	)		65,932
Cash, cash equivalents and restricted cash:
Beginning		122,340			183,640			185,843			119,911
Ending	$	111,444		$	185,843		$	111,444		$	185,843

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						Twelve-Month Period
	Ended December 31,						Ended December 31,
	2022			2021			2022			2021
Consolidated adjusted EBITDA (1)	$	36,524		$	32,856		$	103,090		$	88,033
EBITDA attributable to redeemable noncontrolling interest		—			—			—			9,127
EBITDA attributable to noncontrolling interest		3,404			—			3,399			—
Interest expense		(3,651	)		(1,733	)		(10,876	)		(7,020	)
Interest income		948			10			2,864			245
Income tax (expense) benefit		(3,254	)		(6,777	)		(11,559	)		(18,679	)
Amortization of syndication contracts		(120	)		(118	)		(468	)		(475	)
Payments on syndication contracts		166			119			470			473
Non-cash stock-based compensation included in direct operating
expenses		(2,816	)		(2,263	)		(5,694	)		(3,234	)
Non-cash stock-based compensation included in corporate expenses		(9,223	)		(4,032	)		(14,340	)		(6,361	)
Depreciation and amortization		(6,485	)		(6,261	)		(25,697	)		(22,420	)
Change in fair value of contingent consideration		(7,400	)		(8,224	)		(14,210	)		(8,224	)
Non-recurring severance charge		(4,316	)		(423	)		(4,316	)		(423	)
Dividend income		—			2			20			213
Realized gain (loss) on marketable securities		(59	)		—			(532	)		—
Other operating gain (loss)		(1,393	)		2,131			(382	)		6,998
Impairment charge		(1,600	)		(1,419	)		(1,600	)		(3,023	)
Net (income) loss attributable to redeemable noncontrolling interest		—			—			—			(5,938	)
Net (income) loss attributable to noncontrolling interest		(2,353	)		—			(2,050	)		—
Net income (loss) attributable to common stockholders		(1,628	)		3,868			18,119			29,292

Depreciation and amortization		6,485			6,261			25,697			22,420
Impairment charge		1,600			1,419			1,600			3,023
Deferred income taxes		(2,211	)		6,206			(5,362	)		14,554
Amortization of debt issuance costs		238			153			1,314			604
Amortization of syndication contracts		120			118			468			475
Payments on syndication contracts		(166	)		(119	)		(470	)		(473	)
Non-cash stock-based compensation		12,039			6,295			20,034			9,595
Realized (gain) loss on marketable securities		59			—			532			—
(Gain) loss on disposal of property and equipment		(37	)		(2,007	)		(636	)		(4,629	)
Change in fair value of contingent consideration		7,400			8,224			14,210			8,224
Net (income) loss attributable to redeemable noncontrolling interest		—			—			—			5,938
Net income (loss) attributable to noncontrolling interest		2,353			—			2,050			—
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		(31,983	)		(33,215	)		(9,687	)		(49,109	)
(Increase) decrease in prepaid expenses and other assets		2,200			4,515			2,017			6,782
Increase (decrease) in accounts payable, accrued expenses and other liabilities		4,306			9,755			9,031			18,557
Net cash provided by (used in ) operating activities	$	775		$	11,473		$	78,917		$	65,253

(1)

Consolidated adjusted EBITDA is defined on page 2.

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

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

	Three-Month Period						Twelve-Month Period
	Ended December 31,						Ended December 31,
	2022			2021			2022			2021
Consolidated adjusted EBITDA (1)	$	36,524		$	32,856		$	103,090		$	88,033
Net, cash interest expense (1)		(2,465	)		(1,570	)		(6,698	)		(6,171	)
Dividend income		—			2			20			213
Cash paid for income taxes		(5,465	)		(571	)		(16,921	)		(4,125	)
Capital expenditures (2)		(3,586	)		(1,550	)		(11,468	)		(5,819	)
Other operating gain (loss)		(1,393	)		2,131			(382	)		6,998
Non-recurring cash severance charge		(4,316	)		(423	)		(4,316	)		(423	)
Free cash flow (1)		19,299			30,875			63,325			78,706

Capital expenditures (2)		3,586			1,550			11,468			5,819
EBITDA attributable to redeemable noncontrolling interest		—			—			—			9,127
EBITDA attributable to noncontrolling interest		3,404			—			3,399			—
(Gain) loss on disposal of property and equipment		(37	)		(2,007	)		(636	)		(4,629	)
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		(31,983	)		(33,215	)		(9,687	)		(49,109	)
(Increase) decrease in prepaid expenses and other assets		2,200			4,515			2,017			6,782
Increase (decrease) in accounts payable, accrued expenses and other liabilities		4,306			9,755			9,031			18,557
Cash Flows From Operating Activities	$	775		$	11,473		$	78,917		$	65,253

(1)		Consolidated adjusted EBITDA, net interest expense, and free cash flow are defined on page 2.
(2)		Capital expenditures are not part of the consolidated statement of operations.

March 9, 2023

Entravision Schedules Fourth Quarter and Full Year 2022 Earnings Release and Conference Call

SANTA MONICA, Calif.–(BUSINESS WIRE)–
Entravision (NYSE: EVC), a leading global advertising solutions, media and technology company, announced that it will release its fourth quarter and full year 2022 financial results after market close on Thursday, March 9, 2023. The Company will host a conference call that day at 5:00 p.m. Eastern Time to discuss the fourth quarter and full year 2022 results.

To access the conference call, please dial (844) 836-8739 (U.S.) or (412) 317-5440 (International) ten minutes prior to the start time. The call will also be available via live webcast on the investor relations portion of the Company’s website located at www.entravision.com.

If you cannot listen to the conference call at its scheduled time, there will be a replay available through Thursday, March 23, 2023 which can be accessed by dialing (844) 512-2921 (U.S.) or (412) 317-6671 (International) and entering the passcode 10176187. The webcast will also be archived on the Company’s website.

About Entravision

Entravision is a leading global advertising, media and ad-tech solutions company connecting brands to consumers by representing top platforms and publishers. Our dynamic portfolio includes digital, television and audio offerings. Digital, our largest revenue segment, is comprised of four business units: our digital sales representation business; Smadex, our programmatic ad purchasing platform; our branding and mobile performance solutions business; and our digital audio business. Through our digital sales representation business, we connect global media companies such as Meta, Twitter, TikTok and Spotify with advertisers in primarily emerging growth markets worldwide. Smadex is our mobile-first demand side platform, enabling advertisers to execute performance campaigns using machine learning. We also offer a branding and mobile performance solutions business, which provides managed services to advertisers looking to connect with global consumers, primarily on mobile devices, and our digital audio business provides digital audio advertising solutions for advertisers in the Americas. In addition to digital, Entravision has 49 television stations and is the largest affiliate group of the Univision and UniMás television networks. Entravision also manages 45 primarily Spanish-language radio stations that feature nationally recognized, Emmy award-winning talent. 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.

March 7, 2023

Entravision Increases Quarterly Cash Dividend by 100%

SANTA MONICA, Calif.–(BUSINESS WIRE)–
Entravision (NYSE: EVC), a leading global advertising solutions, media and technology company, today announced that its Board of Directors approved a quarterly cash dividend to shareholders of $0.05 per share of the Company’s Class A, Class B and Class U common stock. This reflects a doubling of its previous quarterly dividend of $0.025 in 2022 and returns the dividend to its pre-pandemic level. The Company anticipates an aggregate payout amount of approximately $4.4 million.

This quarterly dividend is payable on March 31, 2023 to shareholders of record as of the close of business on March 16, 2023, and the common stock will trade ex-dividend on March 15, 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.

“We are pleased to increase our quarterly cash dividend, which represents the 41st consecutive dividend we have paid to our shareholders over the past 13 years,” said Chris Young, Interim Chief Executive Officer, and Chief Financial Officer & Treasurer. “Increasing our dividend reflects the strength of our cash position and our Board’s confidence in our ability to drive sustainable profitable growth. We will continue to execute on our balanced capital allocation strategy, including deploying capital to investments that will fuel our growth.”

About Entravision

Entravision is a leading global advertising solutions, media and technology company connecting brands to consumers by representing top platforms and publishers. Our dynamic portfolio includes digital, television and audio offerings. Digital, our largest revenue segment, comprises four business units: our digital sales representation business; Smadex, our programmatic ad purchasing platform; our branding and mobile performance solutions business; and our digital audio business. Through our digital sales representation business, we connect global media companies such as Meta, Twitter, TikTok and Spotify with advertisers in primarily emerging growth markets worldwide. Smadex is our mobile-first demand side platform, enabling advertisers to execute performance campaigns using machine learning. We also offer a branding and mobile performance solutions business, which provides managed services to advertisers looking to connect with global consumers, primarily on mobile devices, and our digital audio business provides digital audio advertising solutions for advertisers in the Americas. In addition to digital, Entravision has 49 television stations and is the largest affiliate group of the Univision and UniMás television networks. Entravision also manages 45 primarily Spanish-language radio stations that feature nationally recognized, Emmy award-winning talent. 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.

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.

February 3, 2023

Entravision Communications Corporation Reports Third Quarter 2022 Results

SANTA MONICA, Calif.–(BUSINESS WIRE)–
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, 2022.

Third Quarter 2022 Highlights

Record third quarter advertising revenue
Net revenue up 21% over the prior-year quarter
Net income attributable to common stockholders down 23% over the prior-year quarter
Consolidated adjusted EBITDA up 12% over the prior-year quarter
Operating cash flow up 62% over the prior-year quarter
Free cash flow down 31% over the prior-year quarter
Quarterly cash dividend of $0.025 per share

“Entravision continued to see progress in the third quarter of 2022, with revenue up 21% versus the prior-year period. Adjusted EBITDA also improved double-digits, increasing 12% year-over-year,” said Walter Ulloa, Chairman and Chief Executive Officer. “Entravision’s strength throughout the quarter was again driven by our digital segment, where revenue improved 29% versus the third quarter of 2021. In our television and audio businesses, political ad spend, in particular, continued to perform strongly.”

Mr. Ulloa continued, “Entravision’s solid performance in the third quarter, together with our progress year-to-date, demonstrates the resiliency and growth of our business in a tough macro environment. We continue to strategically expand across the globe and now have operations in 40 countries across five continents in service of more than 7,000 clients. We are thoughtfully positioning our digital teams in emerging economies where Entravision’s unique offerings have a key first-mover advantage and where a critical mass of connected consumers exists alongside a growing advertising industry. We remain optimistic in finding multiple growth opportunities around the world for our digital business and look forward to sharing our progress as we continue to grow and expand globally.”

Quarterly Cash Dividend

The Company announced today that its Board of Directors approved a quarterly cash dividend to shareholders of $0.025 per share on the Company’s Class A, Class B and Class U common stock, in an aggregate amount of approximately $2.1 million. The quarterly dividend will be payable on December 30, 2022 to shareholders of record as of the close of business on December 15, 2022, and the common stock will trade ex-dividend on December 14, 2022. 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,
	2022		2021			% Change			2022		2021			% Change
Net revenue	$	241,014	$	199,008			21	%	$	659,881	$	526,298			25	%
Cost of revenue – digital (1)		157,095		124,332			26	%		431,951		318,118			36	%
Operating expenses (2)		49,294		43,113			14	%		140,527		124,969			12	%
Corporate expenses (3)		9,525		7,253			31	%		26,769		21,756			23	%
Foreign currency (gain) loss		1,966		177		*				2,112		454			365	%

Consolidated adjusted EBITDA (4)		25,972		23,195			12	%		66,566		55,177			21	%

Free cash flow (5)	$	15,443	$	22,382			(31	)%	$	44,026	$	47,831			(8	)%

Net income (loss)	$	9,090	$	13,884			(35	)%	$	19,444	$	31,362			(38	)%
Net (income) loss attributable to redeemable noncontrolling interest	$	–	$	(1,753	)		(100	)%	$	–	$	(5,938	)		(100	)%
Net (income) loss attributable to noncontrolling interest	$	303	$	–		*			$	303	$	–		*
Net income (loss) attributable to common stockholders	$	9,393	$	12,131			(23	)%	$	19,747	$	25,424			(22	)%

Net income (loss) per share attributable to common stockholders, basic	$	0.11	$	0.14			(21	)%	$	0.23	$	0.30			(23	)%
Net income (loss) per share attributable to common stockholders, diluted	$	0.11	$	0.14			(21	)%	$	0.23	$	0.29			(21	)%

Weighted average common shares outstanding, basic		84,945,873		85,390,333						85,469,675		85,207,992
Weighted average common shares outstanding, diluted		87,417,501		88,315,732						87,671,726		87,694,395

(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 $1.0 million and $0.3 million of non-cash stock-based compensation for the three-month periods ended September 30, 2022 and 2021, respectively, and $2.9 million and $1.0 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2022 and 2021, respectively.
(3)	Corporate expenses include $1.8 million and $0.8 million of non-cash stock-based compensation for the three-month periods ended September 30, 2022 and 2021, respectively, and $5.1 million and $2.3 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2022 and 2021, respectively.
(4)	Consolidated adjusted EBITDA means net income (loss) plus gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation included in operating and corporate expenses, net interest expense, other operating gain (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from the Federal Communications Commission, or FCC, spectrum incentive auction less related expenses, expenses associated with investments, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings. We use the term consolidated adjusted EBITDA because that measure is defined in the agreement governing our current credit facility (“the 2017 Credit Facility”) and does not include gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation, net interest expense, other income (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from FCC spectrum incentive auction less related expenses, expenses associated with investments, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings.
(5)	Free cash flow is defined as consolidated adjusted EBITDA less cash paid for income taxes, net interest expense, capital expenditures and non-recurring cash expenses plus dividend income, and other operating gain (loss). Net interest expense is defined as interest expense, less non-cash interest expense relating to amortization of debt finance costs, and less interest income.

Unaudited Financial Results (In thousands)
	Three-Month Period
	Ended September 30,
	2022			2021			% Change
Net revenue	$	241,014		$	199,008			21	%
Cost of revenue – digital (1)		157,095			124,332			26	%
Operating expenses (1)		49,294			43,113			14	%
Corporate expenses (1)		9,525			7,253			31	%
Depreciation and amortization		6,554			5,901			11	%
Change in fair value of contingent consideration		734			–		*
Impairment charge		–			166			(100	)%
Foreign currency (gain) loss		1,966			177		*
Other operating (gain) loss		(58	)		(2,431	)		(98	)%

Operating income (loss)		15,904			20,497			(22	)%
Interest expense, net		(2,267	)		(1,702	)		33	%
Dividend income		6			207			(97	)%
Realized gain (loss) on marketable securities		(473	)		–		*

Income (loss) before income taxes		13,170			19,002			(31	)%
Income tax benefit (expense)		(4,080	)		(5,118	)		(20	)%

Net income (loss)		9,090			13,884			(35	)%
Net (income) loss attributable to redeemable noncontrolling interest		–			(1,753	)		(100	)%
Net (income) loss attributable to noncontrolling interest		303			–		*
Net income (loss) attributable to common stockholders	$	9,393		$	12,131			(23	)%

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

Net revenue in the third quarter of 2022 totaled $241.0 million, up 21% from $199.0 million in the prior-year period. Of the overall increase, approximately $42.8 million was attributable to our digital segment and was primarily due to advertising revenue growth from our digital commercial partnerships business, and due to our investment in a variable interest entity during the third quarter of 2022 and our acquisition of 365 Digital during the fourth quarter of 2021, neither of which contributed to net revenue in the comparable period ended September 30, 2021. In addition, of the overall increase, approximately $0.1 million was attributable to our audio segment, primarily due to increases in political advertising revenue and local advertising revenue, partially offset by a decrease in national advertising revenue. The overall increase was partially offset by a decrease of approximately $0.8 million attributable to our television segment, primarily due to decreases in local and national advertising revenue, and a decrease in retransmission consent revenue. These decreases were mainly attributed to the expiration of our Univision and UniMás network affiliation agreements in Orlando, Tampa and Washington, D.C. on December 31, 2021. The decrease in our television segment revenue was partially offset by increases in political advertising revenue and spectrum usage rights revenue.

Cost of revenue in the third quarter of 2022 totaled $157.1 million, up 26% from $124.3 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 our investment in a variable interest entity during the third quarter of 2022 and our acquisition of 365 Digital during the fourth quarter of 2021, neither of which incurred cost of revenue for us in the comparable period ended September 30, 2021.

Operating expenses in the third quarter of 2022 totaled $49.3 million, up 14% from $43.1 million in the prior-year period. Of the overall increase, approximately $5.9 million was attributable to our digital segment and was primarily due to an increase in expenses associated with the increase in digital advertising revenue, an increase in salary expense and our investment in a variable interest entity during the third quarter of 2022 and our acquisition of 365 Digital during the fourth quarter of 2021, which did not incur operating expenses for us in the comparable period. Additionally, of the overall increase in operating expenses, approximately $0.4 million was attributable to our audio segment primarily due to an increase in expenses associated with the increase in local advertising revenue. The overall increase in operating expenses was partially offset by a decrease of approximately $0.1 million that was attributable to our television segment primarily due to a decrease in expenses associated with the decrease in local and national advertising revenue, partially offset by an increase in rent expense and an increase in bad debt expense.

Corporate expenses in the third quarter of 2022 totaled $9.5 million, up 31% from $7.3 million in the prior-year period. The increase was primarily due to increases in non-cash stock-based compensation and an increase in salaries.

Unaudited Financial Results (In thousands)
	Nine-Month Period
	Ended September 30,
	2022			2021			% Change
Net revenue	$	659,881		$	526,298			25	%
Cost of revenue – digital (1)		431,951			318,118			36	%
Operating expenses (1)		140,527			124,969			12	%
Corporate expenses (1)		26,769			21,756			23	%
Depreciation and amortization		19,212			16,159			19	%
Change in fair value of contingent consideration		6,810			–		*
Impairment charge		–			1,604			(100	)%
Foreign currency (gain) loss		2,112			454			365	%
Other operating (gain) loss		(1,011	)		(4,867	)		(79	)%

Operating income (loss)		33,511			48,105			(30	)%
Interest expense, net		(5,309	)		(5,052	)		5	%
Dividend income		20			211			(91	)%
Realized gain (loss) on marketable securities		(473	)		–		*

Income (loss) before income taxes		27,749			43,264			(36	)%
Income tax benefit (expense)		(8,305	)		(11,902	)		(30	)%

Net income (loss)		19,444			31,362			(38	)%
Net (income) loss attributable to redeemable noncontrolling interest		–			(5,938	)		(100	)%
Net (income) loss attributable to noncontrolling interest		303			–		*
Net income (loss) attributable to common stockholders	$	19,747		$	25,424			(22	)%

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

Net revenue for the nine-month period of 2022 totaled $659.9 million, up 25% from $526.3 million in the prior-year period. Of the overall increase, approximately $139.1 million was attributable to our digital segment and was primarily due to advertising revenue growth from our digital commercial partnerships business. In addition, the increase in net revenue in our digital segment was due to our investment in a variable interest entity and our acquisition of 365 Digital during the third quarter of 2022 and fourth quarter of 2021, respectively, neither of which contributed to net revenue in the comparable period ended September 30, 2021, and due to our acquisition of MediaDonuts during the third of 2021, which only partially contributed to net revenue in the comparable period ended September 30, 2021. Additionally, of the overall increase, approximately $2.1 million was attributable to our audio segment, primarily due to increases in political advertising revenue and local advertising revenue, partially offset by a decrease in national advertising revenue. The overall increase was partially offset by a decrease of approximately $7.7 million attributable to our television segment, primarily due to decreases in local and national advertising revenue, and a decrease in retransmission consent revenue. These decreases were mainly attributed to the expiration of our Univision and UniMás network affiliation agreements in Orlando, Tampa and Washington, D.C. on December 31, 2021. The decrease in our television segment revenue was partially offset by increases in political advertising revenue and spectrum usage rights revenue.

Cost of revenue for the nine-month period of 2022 totaled $432.0 million, up 36% from $318.1 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 our investment in a variable interest entity and our acquisition of 365 Digital during the third quarter of 2022 and fourth quarter of 2021, respectively, neither of which incurred cost of revenue for us in the comparable period ended September 30, 2021, and due to our acquisition of MediaDonuts during the third of 2021, which only partially incurred cost of revenue for us in the comparable period ended September 30, 2021.

Operating expenses for the nine-month period of 2022 totaled $140.5 million, up 12% from $125.0 million in the prior-year period. Of the overall increase, approximately $15.5 million was attributable to our digital segment and was primarily due to an increase in expenses associated with the increase in digital advertising revenue and an increase in salary expense. In addition, the increase in operating expenses in our digital segment was due to our investment in a variable interest entity and our acquisition of 365 Digital during the third quarter of 2022 and fourth quarter of 2021, respectively, neither of which incurred operating expenses for us in the comparable period ended September 30, 2021, and due to our acquisition of MediaDonuts during the third of 2021, which only partially incurred operating expenses for us in the comparable period ended September 30, 2021. Additionally, of the overall increase in operating expenses, approximately $0.6 million was attributable to our audio segment primarily due to an increase in expenses associated with the increase in local advertising revenue. The overall increase in operating expenses was partially offset by a decrease of approximately $0.6 million that was attributable to our television segment primarily due to a decrease in expenses associated with the decrease in local and national advertising revenue, partially offset by an increase in rent expense and bad debt expense.

Corporate expenses for the nine-month period of 2022 totaled $26.8 million, up 23% from $21.8 million in the prior-year period. The increase was primarily due to increases in non-cash stock-based compensation and an increase in salaries.

Balance Sheet and Related Metrics

Cash and marketable securities as of September 30, 2022 totaled approximately $164.8 million. Total debt under the Company’s credit agreement was $210.0 million. Net of $75 million of cash and marketable securities, total leverage as defined in the Company’s credit agreement was 1.4 times as of September 30, 2022. Net of total cash and marketable securities, total leverage was 0.5 times.

Unaudited Segment Results (In thousands)
	Three-Month Period							Nine-Month Period
	Ended September 30,							Ended September 30,
	2022		2021		% Change			2022		2021		% Change
Net Revenue
Digital	$	188,877	$	146,121		29	%	$	516,966	$	377,826		37	%
Television		35,678		36,450		(2	)%		98,918		106,598		(7	)%
Audio		16,459		16,437		0	%		43,997		41,874		5	%
Total	$	241,014	$	199,008		21	%	$	659,881	$	526,298		25	%

Cost of Revenue – digital (1)
Digital	$	157,095	$	124,332		26	%	$	431,951	$	318,118		36	%

Operating Expenses (1)
Digital		19,080		13,187		45	%		51,577		36,064		43	%
Television		20,003		20,148		(1	)%		58,969		59,548		(1	)%
Audio		10,211		9,778		4	%		29,981		29,357		2	%
Total	$	49,294	$	43,113		14	%	$	140,527	$	124,969		12	%

Corporate Expenses (1)	$	9,525	$	7,253		31	%	$	26,769	$	21,756		23	%

Consolidated adjusted EBITDA (1)	$	25,972	$	23,195		12	%	$	66,566	$	55,177		21	%

(1)	Cost of revenue, operating expenses, corporate expenses, and consolidated adjusted EBITDA are defined on page 2.

Notice of Conference Call

Entravision Communications Corporation will hold a conference call to discuss its third quarter 2022 results on Thursday, November 3, 2022 at 4:30 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 10171311. 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 leading global advertising, media and ad-tech solutions company connecting brands to consumers by representing top platforms and publishers. Our dynamic portfolio includes digital, television and audio offerings. Digital, our largest revenue segment, is comprised of four business units: our digital sales representation business; Smadex, our programmatic ad purchasing platform; our branding and mobile performance solutions business; and our digital audio business. Through our digital sales representation business, we connect global media companies such as Meta, Twitter, TikTok and Spotify with advertisers in primarily emerging growth markets worldwide. Smadex is our mobile-first demand side platform, enabling advertisers to execute performance campaigns using machine learning. We also offer a branding and mobile performance solutions business, which provides managed services to advertisers looking to connect with global consumers, primarily on mobile devices, and our digital audio business provides digital audio advertising solutions for advertisers in the Americas. In addition to digital, Entravision has 49 television stations and is the largest affiliate group of the Univision and UniMás television networks. Entravision also manages 45 primarily Spanish-language radio stations that feature nationally recognized, Emmy award-winning talent. Shares of Entravision Class A Common Stock trade on the NYSE under ticker: EVC. Learn more about our offerings at entravision.com or connect with us on LinkedIn and Facebook.

Forward-Looking Statements

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

Entravision Communications Corporation Consolidated Statements of Operations (In thousands, except share and per share data) (Unaudited)

	Three-Month Period						Nine-Month Period
	Ended September 30,						Ended September 30,
	2022			2021			2022			2021
Net revenue	$	241,014		$	199,008		$	659,881		$	526,298

Expenses:
Cost of revenue – digital		157,095			124,332			431,951			318,118
Direct operating expenses		30,086			28,583			87,505			83,480
Selling, general and administrative expenses		19,208			14,530			53,022			41,489
Corporate expenses		9,525			7,253			26,769			21,756
Depreciation and amortization		6,554			5,901			19,212			16,159
Change in fair value of contingent consideration		734			–			6,810			–
Impairment charge		–			166			–			1,604
Foreign currency (gain) loss		1,966			177			2,112			454
Other operating (gain) loss		(58	)		(2,431	)		(1,011	)		(4,867	)
		225,110			178,511			626,370			478,193
Operating income (loss)		15,904			20,497			33,511			48,105
Interest expense		(3,055	)		(1,714	)		(7,225	)		(5,287	)
Interest income		788			12			1,916			235
Dividend income		6			207			20			211
Realized gain (loss) on marketable securities		(473	)		–			(473	)		–
Income (loss) before income taxes		13,170			19,002			27,749			43,264
Income tax benefit (expense)		(4,080	)		(5,118	)		(8,305	)		(11,902	)

Net income (loss)		9,090			13,884			19,444			31,362
Net (income) loss attributable to redeemable noncontrolling interest		–			(1,753	)		–			(5,938	)
Net (income) loss attributable to noncontrolling interest		303			–			303			–
Net income (loss) attributable to common stockholders	$	9,393		$	12,131		$	19,747		$	25,424

Basic and diluted earnings per share:
Net income (loss) per share attributable to common stockholders, basic	$	0.11		$	0.14		$	0.23		$	0.30
Net income (loss) per share attributable to common stockholders, diluted	$	0.11		$	0.14		$	0.23		$	0.29

Cash dividends declared per common share, basic and diluted	$	0.03		$	0.03		$	0.08		$	0.08

Weighted average common shares outstanding, basic		84,945,873			85,390,333			85,469,675			85,207,992
Weighted average common shares outstanding, diluted		87,417,501			88,315,732			87,671,726			87,694,395

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

	September 30,			December 31,
	2022			2021
ASSETS
Current assets
Cash and cash equivalents	$	121,589		$	185,094
Marketable securities		43,212			–
Restricted cash		751			749
Trade receivables, net of allowance for doubtful accounts		194,291			201,747
Assets held for sale		–			1,963
Prepaid expenses and other current assets		42,517			18,925
Total current assets		402,360			408,478
Property and equipment, net		61,649			62,498
Intangible assets subject to amortization, net		64,704			64,034
Intangible assets not subject to amortization		209,053			209,053
Goodwill		86,715			71,708
Deferred income taxes		1,462			1,462
Operating leases right of use asset		42,027			25,582
Other assets		8,487			8,527
Total assets	$	876,457		$	851,342


LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Current maturities of long-term debt	$	5,060		$	4,903
Accounts payable and accrued expenses		240,994			212,655
Operating lease liabilities		5,406			7,304
Total current liabilities		251,460			224,862
Long-term debt, less current maturities, net of unamortized debt issuance costs		207,817			207,416
Long-term operating lease liabilities		39,363			20,988
Other long-term liabilities		29,283			72,930
Deferred income taxes		70,064			68,220
Total liabilities		597,987			594,416

Stockholders’ equity
Class A common stock		6			6
Class B common stock		2			2
Class U common stock		1			1
Additional paid-in capital		770,639			780,388
Accumulated deficit		(502,747	)		(522,494	)
Accumulated other comprehensive income (loss)		(2,025	)		(977	)
Total stockholders’ equity		265,876			256,926
Noncontrolling interest		12,594			–
Total equity		278,470			256,926
Total liabilities and equity	$	876,457		$	851,342

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

	Three-Month Period						Nine-Month Period
	Ended September 30,						Ended September 30,
	2022			2021			2022			2021
Cash flows from operating activities:
Net income (loss)	$	9,090		$	13,884		$	19,444		$	31,362
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		6,554			5,901			19,212			16,159
Impairment charge		–			166			–			1,604
Deferred income taxes		62			4,649			(3,151	)		8,348
Non-cash interest		365			153			1,076			451
Amortization of syndication contracts		117			119			348			357
Payments on syndication contracts		(70	)		(115	)		(304	)		(354	)
Non-cash stock-based compensation		2,786			1,094			7,995			3,300
(Gain) loss on marketable securities		473			–			473			–
(Gain) loss on disposal of property and equipment		39			(2,622	)		(599	)		(2,622	)
Change in fair value of contingent consideration		734			–			6,810			–
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		4,708			(16,361	)		22,296			(15,894	)
(Increase) decrease in prepaid expenses and other assets		1,069			(642	)		(183	)		2,267
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(10,691	)		3,169			4,725			8,802
Net cash provided by operating activities		15,236			9,395			78,142			53,780
Cash flows from investing activities:
Proceeds from sale of property and equipment and intangibles		–			9,431			2,671			9,431
Purchases of property and equipment		(4,673	)		(1,433	)		(7,882	)		(4,269	)
Purchase of a businesses, net of cash acquired		–			(12,847	)		–			(12,847	)
Investment in variable interest entities, net of cash consolidated		(5,164	)		–			(5,164	)		–
Purchases of marketable securities		(5,241	)		–			(92,480	)		–
Proceeds from marketable securities		36,369			10,000			46,868			27,800
Purchases of investments		–			(800	)		–			(800	)
Net cash provided by (used in) investing activities		21,291			4,351			(55,987	)		19,315
Cash flows from financing activities:
Proceeds from stock option exercises		–			242			218			414
Tax payments related to shares withheld for share-based compensation plans		–			(70	)		(267	)		(528	)
Payments on long-term debt		(1,001	)		(750	)		(2,501	)		(2,250	)
Dividends paid		(2,124	)		(2,136	)		(6,415	)		(6,395	)
Repurchase of Class A common stock		–			–			(11,280	)		–
Payment of contingent consideration		(21,734	)		–			(65,340	)		–
Principal payments under finance lease obligation		(33	)		–			(72	)		–
Payments of capitalized debt costs		–			–			–			(604	)
Net cash used in financing activities		(24,892	)		(2,714	)		(85,657	)		(9,363	)
Effect of exchange rates on cash, cash equivalents and restricted cash		5			(3	)		(1	)		(3	)
Net increase (decrease) in cash, cash equivalents and restricted cash		11,640			11,029			(63,503	)		63,729
Cash, cash equivalents and restricted cash:
Beginning		110,700			172,611			185,843			119,911
Ending	$	122,340		$	183,640		$	122,340		$	183,640

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,
	2022			2021			2022			2021

Consolidated adjusted EBITDA (1)	$	25,972		$	23,195		$	66,566		$	55,177
EBITDA attributable to redeemable noncontrolling interest		–			2,036			–			9,127
EBITDA attributable to noncontrolling interest		(5	)		–			(5	)		–
Interest expense		(3,055	)		(1,714	)		(7,225	)		(5,287	)
Interest income		788			12			1,916			235
Dividend income		6			207			20			211
Realized gain (loss) on marketable securities		(473	)		–			(473	)		–
Income tax expense		(4,080	)		(5,118	)		(8,305	)		(11,902	)
Amortization of syndication contracts		(117	)		(119	)		(348	)		(357	)
Payments on syndication contracts		70			115			304			354
Non-cash stock-based compensation included in direct operating expenses		(981	)		(321	)		(2,878	)		(971	)
Non-cash stock-based compensation included in corporate expenses		(1,805	)		(773	)		(5,117	)		(2,329	)
Depreciation and amortization		(6,554	)		(5,901	)		(19,212	)		(16,159	)
Change in fair value of contingent consideration		(734	)		–			(6,810	)		–
Impairment charge		–			(166	)		–			(1,604	)
Other operating gain (loss)		58			2,431			1,011			4,867
Net (income) loss attributable to redeemable noncontrolling interest		–			(1,753	)		–			(5,938	)
Net (income) loss attributable to noncontrolling interest		303			–			303			–
Net income (loss) attributable to common stockholders		9,393			12,131			19,747			25,424

Depreciation and amortization		6,554			5,901			19,212			16,159
Impairment charge		–			166			–			1,604
Deferred income taxes		62			4,649			(3,151	)		8,348
Non-cash interest		365			153			1,076			451
Amortization of syndication contracts		117			119			348			357
Payments on syndication contracts		(70	)		(115	)		(304	)		(354	)
Non-cash stock-based compensation		2,786			1,094			7,995			3,300
Realized (gain) loss on marketable securities		473			–			473			–
(Gain) loss on disposal of property and equipment		39			(2,622	)		(599	)		(2,622	)
Change in fair value of contingent consideration		734			–			6,810			–
Net income (loss) attributable to redeemable noncontrolling interest		–			1,753			–			5,938
Net income (loss) attributable to noncontrolling interest		(303	)		–			(303	)		–
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		4,708			(16,361	)		22,296			(15,894	)
(Increase) decrease in prepaid expenses and other assets		1,069			(642	)		(183	)		2,267
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(10,691	)		3,169			4,725			8,802
Cash flows from operating activities		15,236			9,395			78,142			53,780

(1)	Consolidated adjusted EBITDA is defined on page 2.

Entravision Communications Corporation

Reconciliation of Free Cash Flow to Cash Flows From Operating Activities

(In thousands; unaudited)

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

	Three-Month Period						Nine-Month Period
	Ended September 30,						Ended September 30,
	2022			2021			2022			2021
Consolidated adjusted EBITDA (1)	$	25,972		$	23,195		$	66,566		$	55,177
Net interest expense (1)		(1,902	)		(1,549	)		(4,233	)		(4,601	)
Dividend income		6			207			20			211
Cash paid for income taxes		(4,018	)		(469	)		(11,456	)		(3,554	)
Capital expenditures (2)		(4,673	)		(1,433	)		(7,882	)		(4,269	)
Other operating gain (loss)		58			2,431			1,011			4,867
Free cash flow (1)		15,443			22,382			44,026			47,831

Capital expenditures (2)		4,673			1,433			7,882			4,269
EBITDA attributable to redeemable noncontrolling interest		–			2,036			–			9,127
EBITDA attributable to noncontrolling interest		(5	)		–			(5	)		–
(Gain) loss on disposal of property and equipment		39			(2,622	)		(599	)		(2,622	)
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		4,708			(16,361	)		22,296			(15,894	)
(Increase) decrease in prepaid expenses and other assets		1,069			(642	)		(183	)		2,267
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(10,691	)		3,169			4,725			8,802
Cash Flows From Operating Activities	$	15,236		$	9,395		$	78,142		$	53,780

(1)	Consolidated adjusted EBITDA, net interest expense, and free cash flow are defined on page 2.
(2)	Capital expenditures are not part of the consolidated statement of operations.

View source version on businesswire.com:

https://www.businesswire.com/news/home/20221103005507/en/

Christopher T. Young

Chief Financial Officer

Entravision Communications Corporation

310-447-3870

Kimberly Esterkin

ADDO Investor Relations

310-829-5400

evc@addo.com

Source: Entravision Communications Corporation

November 3, 2022

Entravision Schedules Third Quarter 2022 Earnings Release and Conference Call

SANTA MONICA, Calif.–(BUSINESS WIRE)–
Entravision (NYSE: EVC), a leading global advertising solutions, media and technology company, announced that it will release its third quarter 2022 financial results after market close on Thursday, November 3, 2022. The Company will host a conference call that day at 4:30 p.m. Eastern Time to discuss the third quarter 2022 results.

To access the conference call, please dial (844) 836-8739 (U.S.) or (412) 317-5440 (International) ten minutes prior to the start time. The call will also be available via live webcast on the investor relations portion of the Company’s website located at www.entravision.com.

If you cannot listen to the conference call at its scheduled time, there will be a replay available through Thursday, November 17, 2022 which can be accessed by dialing (844) 512-2921 (U.S.) or (412) 317-6671 (International) and entering the passcode 10171311. The webcast will also be archived on the Company’s website.

About Entravision

Entravision is a leading global advertising, media and ad-tech solutions company connecting brands to consumers by representing top platforms and publishers. Our dynamic portfolio includes digital, television and audio offerings. Digital, our largest revenue segment, is comprised of four business units: our digital sales representation business; Smadex, our programmatic ad purchasing platform; our branding and mobile performance solutions business; and our digital audio business. Through our digital sales representation business, we connect global media companies such as Meta, Twitter, TikTok and Spotify with advertisers in primarily emerging growth markets worldwide. Smadex is our mobile-first demand side platform, enabling advertisers to execute performance campaigns using machine learning. We also offer a branding and mobile performance solutions business, which provides managed services to advertisers looking to connect with global consumers, primarily on mobile devices, and our digital audio business provides digital audio advertising solutions for advertisers in the Americas. In addition to digital, Entravision has 49 television stations and is the largest affiliate group of the Univision and UniMás television networks. Entravision also manages 45 primarily Spanish-language radio stations that feature nationally recognized, Emmy award-winning talent. 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.

View source version on businesswire.com:

https://www.businesswire.com/news/home/20221026006133/en/

Christopher T. Young

Chief Financial Officer

Entravision

310-447-3870

Kimberly Esterkin

Addo Investor Relations

310-829-5400

evc@addo.com

Source: Entravision

October 27, 2022

Entravision Communications Corporation Reports Second Quarter 2022 Results

SANTA MONICA, Calif.–(BUSINESS WIRE)–
Entravision Communications Corporation (NYSE: EVC), a leading global advertising solutions, media and technology company, today announced financial results for the three- and six-month periods ended June 30, 2022.

Second Quarter 2022 Highlights

Record second quarter revenue
Net revenue up 24% over the prior-year quarter
Net income attributable to common stockholders up 8% over the prior-year quarter
Consolidated adjusted EBITDA up 26% over the prior-year quarter
Operating cash flow down 54% over the prior-year quarter
Free cash flow up 15% over the prior-year quarter
Quarterly cash dividend of $0.025 per share
Repurchased $4.1 million in shares during the second quarter

“The second quarter marked yet another impressive performance for Entravision, with net revenues totaling $221.7 million, up 24% versus the prior year quarter. On a year to date basis, revenues increased even more significantly and were up 28% as compared to the first half of 2021,” said Walter Ulloa, Chairman and Chief Executive Officer. “Strength during the quarter was largely driven by the growth of our digital segment, where revenues improved 34% year-over-year. Our audio segment also contributed to the quarterly revenue increase. Of particular note, political ad spend was very strong during the second quarter, positioning us well in political advertising revenue for the remainder of the year, and further highlights the growing importance of the Hispanic voter in both local and national elections.”

Mr. Ulloa continued, “Entravision is well positioned for continued growth. Our strong balance sheet and exceptional global team of industry-leading digital media and sales professionals provide us with the key components to succeed. At the same time, our continued focus on expense management will help drive our EBITDA, free cash flow and ability to provide consistent returns to shareholders.”

Quarterly Cash Dividend

The Company announced today that its Board of Directors approved a quarterly cash dividend to shareholders of $0.025 per share on the Company’s Class A, Class B and Class U common stock, in an aggregate amount of approximately $2.1 million. The quarterly dividend will be payable on September 30, 2022 to shareholders of record as of the close of business on September 15, 2022, and the common stock will trade ex-dividend on September 14, 2022. 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.

Share Repurchase Program

During the second quarter the Company repurchased $4.1 million of its Class A common stock. As of the end of the second quarter 2022, the Company repurchased a total of $11.3 million shares of its Class A common stock under its $20 million share repurchase program.

Investment in Jack of Digital

The Company has finalized its strategic stake in Jack of Digital, a digital marketing services company that serves as the exclusive advertising sales partner of TikTok in Pakistan. With this investment, the Company enhances its presence in South Asia.

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								Six-Month Period
	Ended June 30,								Ended June 30,
	2022		2021			% Change			2022		2021			% Change
Net revenue	$	221,695	$	178,410			24	%	$	418,867	$	327,290			28	%
Cost of revenue – digital (1)		144,965		109,030			33	%		274,856		193,786			42	%
Operating expenses (2)		47,371		41,442			14	%		91,233		81,856			11	%
Corporate expenses (3)		8,520		7,345			16	%		17,244		14,503			19	%
Foreign currency (gain) loss		993		(309	)	*				146		277			(47	)%

Consolidated adjusted EBITDA (4)		22,481		17,787			26	%		40,594		31,982			27	%

Free cash flow (5)	$	14,256	$	12,420			15	%	$	28,583	$	25,449			12	%

Net income (loss)	$	8,467	$	10,476			(19	)%	$	10,354	$	17,478			(41	)%
Net (income) loss attributable to redeemable noncontrolling interest	$	–	$	(2,612	)		(100	)%	$	–	$	(4,185	)		(100	)%
Net income (loss) attributable to common stockholders	$	8,467	$	7,864			8	%	$	10,354	$	13,293			(22	)%

Net income (loss) per share attributable to common stockholders, basic	$	0.10	$	0.09			11	%	$	0.12	$	0.16			(25	)%
Net income (loss) per share attributable to common stockholders, diluted	$	0.10	$	0.09			11	%	$	0.12	$	0.15			(20	)%

Weighted average common shares outstanding, basic		84,959,130		85,188,182						85,735,916		85,115,310
Weighted average common shares outstanding, diluted		86,985,817		87,777,039						87,803,178		87,382,215

(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 $0.9 million and $0.3 million of non-cash stock-based compensation for the three-month periods ended June 30, 2022 and 2021, respectively, and $1.9 million and $0.6 million of non-cash stock-based compensation for the six-month periods ended June 30, 2022 and 2021, respectively.
(3)		Corporate expenses include $1.7 million and $0.8 million of non-cash stock-based compensation for the three-month periods ended June 30, 2022 and 2021, respectively, and $3.3 million and $1.6 million of non-cash stock-based compensation for the six-month periods ended June 30, 2022 and 2021, respectively.
(4)		Consolidated adjusted EBITDA means net income (loss) plus gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation included in operating and corporate expenses, net interest expense, other operating gain (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from the Federal Communications Commission, or FCC, spectrum incentive auction less related expenses, expenses associated with investments, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings. We use the term consolidated adjusted EBITDA because that measure is defined in the agreement governing our current credit facility (“the 2017 Credit Facility”) and does not include gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation, net interest expense, other income (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from FCC spectrum incentive auction less related expenses, expenses associated with investments, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings.
(5)		Free cash flow is defined as consolidated adjusted EBITDA less cash paid for income taxes, net interest expense, capital expenditures and non-recurring cash expenses plus dividend income, and other operating gain (loss). Net interest expense is defined as interest expense, less non-cash interest expense relating to amortization of debt finance costs, and less interest income.

Unaudited Financial Results (In thousands)

	Three-Month Period
	Ended June 30,
	2022			2021			% Change
Net revenue	$	221,695		$	178,410			24	%
Cost of revenue – digital (1)		144,965			109,030			33	%
Operating expenses (1)		47,371			41,442			14	%
Corporate expenses (1)		8,520			7,345			16	%
Depreciation and amortization		6,263			5,074			23	%
Change in fair value of contingent consideration		976			–		*
Impairment charge		–			112			(100	)%
Foreign currency (gain) loss		993			(309	)	*
Other operating (gain) loss		(834	)		(523	)		59	%

Operating income (loss)		13,441			16,239			(17	)%
Interest expense, net		(1,612	)		(1,773	)		(9	)%
Dividend income		11			2			450	%

Income (loss) before income taxes		11,840			14,468			(18	)%
Income tax benefit (expense)		(3,373	)		(3,992	)		(16	)%

Net income (loss)		8,467			10,476			(19	)%
Net (income) loss attributable to redeemable noncontrolling interest		–			(2,612	)		(100	)%
Net income (loss) attributable to common stockholders	$	8,467		$	7,864			8	%
(1) Cost of revenue, operating expenses and corporate expenses are defined on page 2.

Net revenue in the second quarter of 2022 totaled $221.7 million, up 24% from $178.4 million in the prior-year period. Of the overall increase, approximately $44.2 million was attributable to our digital segment and was primarily due to advertising revenue growth from our digital commercial partnerships business and our acquisitions of MediaDonuts and 365 Digital during the third and fourth quarters of 2021, respectively, both of which did not contribute to net revenue in the comparable period. In addition, of the overall increase, approximately $0.8 million was attributable to our audio segment primarily due to increases in local advertising revenue and political advertising revenue, partially offset by a decrease in national advertising revenue. The overall increase was partially offset by a decrease of approximately $1.7 million attributable to our television segment, primarily due to decreases in local and national advertising revenue, and a decrease in retransmission consent revenue. These decreases were mainly attributed to the expiration of our Univision and UniMás network affiliation agreements in Orlando, Tampa and Washington, D.C. on December 31, 2021. The decrease in our television segment was partially offset by increases in political advertising revenue and spectrum usage rights revenue.

Cost of revenue in the second quarter of 2022 totaled $145.0 million, up 33% from $109.0 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 our acquisitions of MediaDonuts and 365 Digital during the third and fourth quarters of 2021, respectively, both of which did not incur cost of revenue for us in the comparable period.

Operating expenses in the second quarter of 2022 totaled $47.4 million, up 14% from $41.4 million in the prior-year period. Of the overall increase, approximately $5.2 million was attributable to our digital segment and was primarily due to an increase in expenses associated with the increase in digital advertising revenue, an increase in salary expense and our acquisitions of MediaDonuts and 365 Digital during the third and fourth quarters of 2021, respectively, both of which did not incur operating expenses for us in the comparable period. In addition, of the overall increase in operating expenses, approximately $0.2 million was attributable to our television segment primarily due to an increase in salaries and bad debt expense, partially offset by a decrease in expenses associated with the decrease in local and national advertising revenue. Additionally, of the overall increase in operating expenses, approximately $0.5 million was attributable to our audio segment primarily due to an increase in expenses associated with the increase in advertising revenue.

Corporate expenses in the second quarter of 2022 totaled $8.5 million, up 16% from $7.3 million in the prior-year period. The increase was primarily due to increases in non-cash stock-based compensation and salaries.

Unaudited Financial Results (In thousands)

	Six-Month Period
	Ended June 30,
	2022			2021			% Change
Net revenue	$	418,867		$	327,290			28	%
Cost of revenue – digital (1)		274,856			193,786			42	%
Operating expenses (1)		91,233			81,856			11	%
Corporate expenses (1)		17,244			14,503			19	%
Depreciation and amortization		12,658			10,258			23	%
Change in fair value of contingent consideration		6,076			–		*
Impairment charge		–			1,438			(100	)%
Foreign currency (gain) loss		146			277			(47	)%
Other operating (gain) loss		(953	)		(2,436	)		(61	)%

Operating income (loss)		17,607			27,608			(36	)%
Interest expense, net		(3,042	)		(3,350	)		(9	)%
Dividend income		14			4			250	%

Income (loss) before income taxes		14,579			24,262			(40	)%
Income tax benefit (expense)		(4,225	)		(6,784	)		(38	)%

Net income (loss)		10,354			17,478			(41	)%
Net (income) loss attributable to redeemable noncontrolling interest		–			(4,185	)		(100	)%
Net income (loss) attributable to common stockholders	$	10,354		$	13,293			(22	)%
(1) Cost of revenue, operating expenses and corporate expenses are defined on page 2.

Net revenue for the six-month period of 2022 totaled $418.9 million, up 28% from $327.3 million in the prior-year period. Of the overall increase, approximately $96.4 million was attributable to our digital segment and was primarily due to advertising revenue growth from our digital commercial partnerships business and our acquisitions of MediaDonuts and 365 Digital during the third and fourth quarters of 2021, respectively, both of which did not contribute to net revenue in the comparable period. In addition, of the overall increase, approximately $2.1 million was attributable to our audio segment primarily due to increases in local advertising revenue and political advertising revenue, partially offset by a decrease in national advertising revenue. The overall increase was partially offset by a decrease of approximately $6.9 million attributable to our television segment, primarily due to decreases in local and national advertising revenue, and a decrease in retransmission consent revenue. These decreases were mainly attributed to the expiration of our Univision and UniMás network affiliation agreements in Orlando, Tampa and Washington, D.C. on December 31, 2021. Additionally, the decrease in our television segment was attributed to a decrease in revenue from spectrum usage rights, partially offset by an increase political advertising revenue.

Cost of revenue for the six-month period of 2022 totaled $274.9 million, up 42% from $193.8 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 our acquisitions of MediaDonuts and 365 Digital during the third and fourth quarters of 2021, respectively, both of which did not incur cost of revenue for us in the comparable period.

Operating expenses for the six-month period of 2022 totaled $91.2 million, up 11% from $81.9 million in the prior-year period. Of the overall increase, approximately $9.6 million was attributable to our digital segment and was primarily due to an increase in expenses associated with the increase in digital advertising revenue, an increase in salary expense and our acquisitions of MediaDonuts and 365 Digital during the third and fourth quarters of 2021, respectively, both of which did not incur operating expenses for us in the comparable period. Additionally, of the overall increase in operating expenses, approximately $0.2 million was attributable to our audio segment primarily due to an increase in expenses associated with the increase in advertising revenue. The overall increase in operating expenses was partially offset by a decrease of approximately $0.4 million that was attributable to our television segment primarily due to a decrease in expenses associated with the decrease in local and national advertising revenue, partially offset by an increase in salaries and bad debt expense.

Corporate expenses for the six-month period of 2022 totaled $17.2 million, up 19% from $14.5 million in the prior-year period. The increase was primarily due to increases in non-cash stock-based compensation and salaries.

Balance Sheet and Related Metrics

Cash and marketable securities as of June 30, 2022 totaled approximately $184.2 million. Total debt under the Company’s credit agreement was $210.8 million. Net of $75 million of cash and marketable securities, total leverage as defined in the Company’s credit agreement was 1.4 times as of June 30, 2022. Net of total cash and marketable securities, total leverage was 0.3 times.

Unaudited Segment Results (In thousands)

	Three-Month Period							Six-Month Period
	Ended June 30,							Ended June 30,
	2022		2021		% Change			2022		2021		% Change
Net Revenue
Digital	$	174,378	$	130,223		34	%	$	328,089	$	231,705		42	%
Television		32,373		34,057		(5	)%		63,240		70,148		(10	)%
Audio		14,944		14,130		6	%		27,538		25,437		8	%
Total	$	221,695	$	178,410		24	%	$	418,867	$	327,290		28	%

Cost of Revenue – digital (1)
Digital	$	144,965	$	109,030		33	%	$	274,856	$	193,786		42	%

Operating Expenses (1)
Digital		17,262		12,027		44	%		32,497		22,877		42	%
Television		19,726		19,516		1	%		38,966		39,400		(1	)%
Audio		10,383		9,899		5	%		19,770		19,579		1	%
Total	$	47,371	$	41,442		14	%	$	91,233	$	81,856		11	%

Corporate Expenses (1)	$	8,520	$	7,345		16	%	$	17,244	$	14,503		19	%

Consolidated adjusted EBITDA (1)	$	22,481	$	17,787		26	%	$	40,594	$	31,982		27	%
(1) Cost of revenue, operating expenses, corporate expenses, and consolidated adjusted EBITDA are defined on page 2.

Notice of Conference Call

Entravision Communications Corporation will hold a conference call to discuss its second quarter 2022 results on Wednesday, August 3, 2022 at 5 p.m. Eastern Time. To access the conference call, please dial (877) 407-9716 (U.S.) or (201) 493-6779 (Int’l) ten minutes prior to the start time and reference Conference ID number 13730294. 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 leading global advertising, media and ad-tech solutions company connecting brands to consumers by representing top platforms and publishers. Our dynamic portfolio includes digital, television and audio offerings. Digital, our largest revenue segment, is comprised of four business units: our digital sales representation business; Smadex, our programmatic ad purchasing platform; our branding and mobile performance solutions business; and our digital audio business. Through our digital sales representation business, we connect global media companies such as Meta, Twitter, TikTok and Spotify with advertisers in primarily emerging growth markets worldwide. Smadex is our mobile-first demand side platform, enabling advertisers to execute performance campaigns using machine learning. We also offer a branding and mobile performance solutions business, which provides managed services to advertisers looking to connect with global consumers, primarily on mobile devices, and our digital audio business provides digital audio advertising solutions for advertisers in the Americas. In addition to digital, Entravision has 49 television stations and is the largest affiliate group of the Univision and UniMás television networks. Entravision also manages 45 primarily Spanish-language radio stations that feature nationally recognized, Emmy award-winning talent. Shares of Entravision Class A Common Stock trade on the NYSE under ticker: EVC. Learn more about our offerings at entravision.com or connect with us on LinkedIn and Facebook.

Forward-Looking Statements

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

Entravision Communications Corporation
Consolidated Statements of Operations
(In thousands, except share and per share data)
(Unaudited)

	Three-Month Period						Six-Month Period
	Ended June 30,						Ended June 30,
	2022			2021			2022			2021
Net revenue	$	221,695		$	178,410		$	418,867		$	327,290

Expenses:
Cost of revenue – digital		144,965			109,030			274,856			193,786
Direct operating expenses		29,596			28,336			57,419			54,897
Selling, general and administrative expenses		17,775			13,106			33,814			26,959
Corporate expenses		8,520			7,345			17,244			14,503
Depreciation and amortization		6,263			5,074			12,658			10,258
Change in fair value of contingent consideration		976			–			6,076			–
Impairment charge		–			112			–			1,438
Foreign currency (gain) loss		993			(309	)		146			277
Other operating (gain) loss		(834	)		(523	)		(953	)		(2,436	)
		208,254			162,171			401,260			299,682
Operating income (loss)		13,441			16,239			17,607			27,608
Interest expense		(2,334	)		(1,856	)		(4,170	)		(3,573	)
Interest income		722			83			1,128			223
Dividend income		11			2			14			4
Income (loss) before income taxes		11,840			14,468			14,579			24,262
Income tax benefit (expense)		(3,373	)		(3,992	)		(4,225	)		(6,784	)

Net income (loss)		8,467			10,476			10,354			17,478
Net (income) loss attributable to redeemable noncontrolling interest		–			(2,612	)		–			(4,185	)
Net income (loss) attributable to common stockholders	$	8,467		$	7,864		$	10,354		$	13,293

Basic and diluted earnings per share:
Net income (loss) per share attributable to common stockholders, basic	$	0.10		$	0.09		$	0.12		$	0.16
Net income (loss) per share attributable to common stockholders, diluted	$	0.10		$	0.09		$	0.12		$	0.15

Cash dividends declared per common share, basic and diluted	$	0.03		$	0.03		$	0.05		$	0.05

Weighted average common shares outstanding, basic		84,959,130			85,188,182			85,735,916			85,115,310
Weighted average common shares outstanding, diluted		86,985,817			87,777,039			87,803,178			87,382,215

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

	June 30,			December 31,
	2022			2021
ASSETS
Current assets
Cash and cash equivalents	$	109,950		$	185,094
Marketable securities		74,278			–
Restricted cash		750			749
Trade receivables, net of allowance for doubtful accounts		184,872			201,747
Assets held for sale		–			1,963
Prepaid expenses and other current assets		37,029			18,925
Total current assets		406,879			408,478
Property and equipment, net		58,274			62,498
Intangible assets subject to amortization, net		58,931			64,034
Intangible assets not subject to amortization		209,053			209,053
Goodwill		73,273			71,708
Deferred income taxes		1,462			1,462
Operating leases right of use asset		24,356			25,582
Other assets		7,975			8,527
Total assets	$	840,203		$	851,342


LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Current maturities of long-term debt	$	4,795		$	4,903
Accounts payable and accrued expenses		229,953			212,655
Operating lease liabilities		6,097			7,304
Total current liabilities		240,845			224,862
Long-term debt, less current maturities, net of unamortized debt issuance costs		206,218			207,416
Long-term operating lease liabilities		20,802			20,988
Other long-term liabilities		49,135			72,930
Deferred income taxes		67,910			68,220
Total liabilities		584,910			594,416

Stockholders’ equity
Class A common stock		6			6
Class B common stock		2			2
Class U common stock		1			1
Additional paid-in capital		769,977			780,388
Accumulated deficit		(512,140	)		(522,494	)
Accumulated other comprehensive income (loss)		(2,553	)		(977	)
Total stockholders’ equity		255,293			256,926
Total liabilities and stockholders’ equity	$	840,203		$	851,342

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

	Three-Month Period						Six-Month Period
	Ended June 30,						Ended June 30,
	2022			2021			2022			2021
Cash flows from operating activities:
Net income (loss)	$	8,467		$	10,476		$	10,354		$	17,478
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		6,263			5,074			12,658			10,258
Impairment charge		–			112			–			1,438
Deferred income taxes		(2,854	)		712			(3,213	)		3,699
Non-cash interest		431			159			711			298
Amortization of syndication contracts		115			119			231			238
Payments on syndication contracts		(116	)		(115	)		(234	)		(239	)
Non-cash stock-based compensation		2,636			1,135			5,209			2,206
(Gain) loss on disposal of property and equipment		(487	)		–			(638	)		–
Change in fair value of contingent consideration		976			–			6,076			–
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		(11,792	)		(9,460	)		17,588			467
(Increase) decrease in prepaid expenses and other assets		1,153			1,732			(1,252	)		2,909
Increase (decrease) in accounts payable, accrued expenses and other liabilities		4,895			10,989			15,416			5,633
Net cash provided by operating activities		9,687			20,933			62,906			44,385
Cash flows from investing activities:
Proceeds from sale of property and equipment and intangibles		2,507			–			2,671			–
Purchases of property and equipment		(1,662	)		(998	)		(3,209	)		(2,836	)
Purchases of marketable securities		(1,722	)		–			(87,239	)		–
Proceeds from marketable securities		10,499			5,680			10,499			17,800
Net cash provided by (used in) investing activities		9,622			4,682			(77,278	)		14,964
Cash flows from financing activities:
Proceeds from stock option exercises		–			172			218			172
Tax payments related to shares withheld for share-based compensation plans		(10	)		(449	)		(267	)		(458	)
Payments on long-term debt		(750	)		(750	)		(1,500	)		(1,500	)
Dividends paid		(2,124	)		(2,133	)		(4,291	)		(4,259	)
Repurchase of Class A common stock		(4,138	)		–			(11,280	)		–
Payment of contingent consideration		(28,876	)		–			(43,606	)		–
Principal payments under finance lease obligation		(29	)		–			(39	)		–
Payments of capitalized debt costs		—			(604	)		–			(604	)
Net cash used in financing activities		(35,927	)		(3,764	)		(60,765	)		(6,649	)
Effect of exchange rates on cash, cash equivalents and restricted cash		(5	)		24			(6	)		–
Net increase (decrease) in cash, cash equivalents and restricted cash		(16,623	)		21,875			(75,143	)		52,700
Cash, cash equivalents and restricted cash:
Beginning		127,323			150,736			185,843			119,911
Ending	$	110,700		$	172,611		$	110,700		$	172,611

Entravision Communications Corporation

Reconciliation of Consolidated Adjusted EBITDA to Cash Flows From Operating Activities

(In thousands; unaudited)

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

	Three-Month Period						Six-Month Period
	Ended June 30,						Ended June 30,
	2022			2021			2022			2021

Consolidated adjusted EBITDA (1)	$	22,481		$	17,787		$	40,594		$	31,982
EBITDA attributable to redeemable noncontrolling interest		–			4,254			–			7,091
Interest expense		(2,334	)		(1,856	)		(4,170	)		(3,573	)
Interest income		722			83			1,128			223
Dividend income		11			2			14			4
Income tax expense		(3,373	)		(3,992	)		(4,225	)		(6,784	)
Amortization of syndication contracts		(115	)		(119	)		(231	)		(238	)
Payments on syndication contracts		116			115			234			239
Non-cash stock-based compensation included in direct operating expenses		(939	)		(334	)		(1,897	)		(650	)
Non-cash stock-based compensation included in corporate expenses		(1,697	)		(801	)		(3,312	)		(1,556	)
Depreciation and amortization		(6,263	)		(5,074	)		(12,658	)		(10,258	)
Change in fair value of contingent consideration		(976	)		–			(6,076	)		–
Impairment charge		–			(112	)		–			(1,438	)
Other operating gain (loss)		834			523			953			2,436
Net (income) loss attributable to redeemable noncontrolling interest		–			(2,612	)		–			(4,185	)
Net income (loss) attributable to common stockholders		8,467			7,864			10,354			13,293

Depreciation and amortization		6,263			5,074			12,658			10,258
Impairment charge		–			112			–			1,438
Deferred income taxes		(2,854	)		712			(3,213	)		3,699
Non-cash interest		431			159			711			298
Amortization of syndication contracts		115			119			231			238
Payments on syndication contracts		(116	)		(115	)		(234	)		(239	)
Non-cash stock-based compensation		2,636			1,135			5,209			2,206
(Gain) loss on disposal of property and equipment		(487	)		–			(638	)		–
Change in fair value of contingent consideration		976			–			6,076			–
Net income (loss) attributable to redeemable noncontrolling interest		–			2,612			–			4,185
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		(11,792	)		(9,460	)		17,588			467
(Increase) decrease in prepaid expenses and other assets		1,153			1,732			(1,252	)		2,909
Increase (decrease) in accounts payable, accrued expenses and other liabilities		4,895			10,989			15,416			5,633
Cash flows from operating activities		9,687			20,933			62,906			44,385

(1)

Consolidated adjusted EBITDA is defined on page 2.

Entravision Communications Corporation

Reconciliation of Free Cash Flow to Cash Flows From Operating Activities

(In thousands; unaudited)

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

	Three-Month Period						Six-Month Period
	Ended June 30,						Ended June 30,
	2022			2021			2022			2021
Consolidated adjusted EBITDA (1)	$	22,481		$	17,787		$	40,594		$	31,982
Net interest expense (1)		(1,181	)		(1,614	)		(2,331	)		(3,052	)
Dividend income		11			2			14			4
Cash paid for income taxes		(6,227	)		(3,280	)		(7,438	)		(3,085	)
Capital expenditures (2)		(1,662	)		(998	)		(3,209	)		(2,836	)
Other operating gain (loss)		834			523			953			2,436
Free cash flow (1)		14,256			12,420			28,583			25,449

Capital expenditures (2)		1,662			998			3,209			2,836
EBITDA attributable to redeemable noncontrolling interest		–			4,254			–			7,091
(Gain) loss on disposal of property and equipment		(487	)		–			(638	)		–
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		(11,792	)		(9,460	)		17,588			467
(Increase) decrease in prepaid expenses and other assets		1,153			1,732			(1,252	)		2,909
Increase (decrease) in accounts payable, accrued expenses and other liabilities		4,895			10,989			15,416			5,633
Cash Flows From Operating Activities	$	9,687		$	20,933		$	62,906		$	44,385

(1)		Consolidated adjusted EBITDA, net interest expense, and free cash flow are defined on page 2.
(2)		Capital expenditures are not part of the consolidated statement of operations.

View source version on businesswire.com:

https://www.businesswire.com/news/home/20220802006195/en/

For more information, please contact:

Christopher T. Young

Chief Financial Officer

Entravision Communications Corporation

310-447-3870

Kimberly Esterkin

ADDO Investor Relations

310-829-5400

evc@addo.com

Source: Entravision Communications Corporation

August 3, 2022

Entravision Schedules Second Quarter 2022 Earnings Release and Conference Call

SANTA MONICA, Calif.–(BUSINESS WIRE)–
Entravision (NYSE: EVC), a leading global advertising solutions, media and technology company, announced that it will release its second quarter 2022 financial results after market close on Wednesday, August 3, 2022. The Company will host a conference call that day at 5:00 p.m. Eastern Time to discuss the second quarter 2022 results.

To access the conference call, please dial (877) 407-9716 (U.S.) or (201) 493-6779 (International) ten minutes prior to the start time. The call will also be available via live webcast on the investor relations portion of the Company’s website located at www.entravision.com.

If you cannot listen to the conference call at its scheduled time, there will be a replay available through Wednesday, August 17, 2022 which can be accessed by dialing (844) 512-2921 (U.S.) or (412) 317-6671 (International) and entering the passcode 13730294. The webcast will also be archived on the Company’s website.

About Entravision

Entravision is a leading global advertising, media and ad-tech solutions company connecting brands to consumers by representing top platforms and publishers. Our dynamic portfolio includes digital, television and audio offerings. Digital, our largest revenue segment, is comprised of four business units: our digital sales representation business; Smadex, our programmatic ad purchasing platform; our branding and mobile performance solutions business; and our digital audio business. Through our digital sales representation business, we connect global media companies such as Meta, Twitter, TikTok and Spotify with advertisers in primarily emerging growth markets worldwide. Smadex is our mobile-first demand side platform, enabling advertisers to execute performance campaigns using machine learning. We also offer a branding and mobile performance solutions business, which provides managed services to advertisers looking to connect with global consumers, primarily on mobile devices, and our digital audio business provides digital audio advertising solutions for advertisers in the Americas. In addition to digital, Entravision has 49 television stations and is the largest affiliate group of the Univision and UniMás television networks. Entravision also manages 46 primarily Spanish-language radio stations that feature nationally recognized, Emmy award-winning talent. 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.

View source version on businesswire.com:

https://www.businesswire.com/news/home/20220722005440/en/

Christopher T. Young

Chief Financial Officer

Entravision

310-447-3870

Kimberly Esterkin

Addo Investor Relations

310-829-5400

evc@addo.com

Source: Entravision

July 22, 2022

Entravision Communications Corporation Reports First Quarter 2022 Results

SANTA MONICA, Calif.–(BUSINESS WIRE)–
Entravision Communications Corporation (NYSE: EVC), a leading global advertising solutions, media and technology company, today announced financial results for the three-month period ended March 31, 2022.

First Quarter 2022 Highlights

All-time first quarter record revenue, EBITDA and free cash flow
Net revenue up 32% over the prior-year quarter
Net income attributable to common stockholders down 65% over the prior-year quarter
Consolidated adjusted EBITDA up 28% over the prior-year quarter
Operating cash flow up 127% over the prior-year quarter
Free cash flow up 10% over the prior-year quarter
Quarterly cash dividend of $0.025 per share
Repurchased $7.1 million in shares under the Company’s $20 million share repurchase program
Post quarter entered into a definitive agreement to make an investment in Jack of Digital

“Entravision begins 2022 on very solid footing, with net revenue for the first quarter totaling $197.2 million, up 32% year-over year. Adjusted EBITDA also improved to total $18.1 million, an increase of 28% over the prior-year period,” said Walter Ulloa, Chairman and Chief Executive Officer. “Importantly, even as our top line continues to grow, we have maintained a lean, efficient cost structure, helping to drive our cash flow as well as our ability to provide consistent returns to our shareholders.”

Mr. Ulloa continued, “Our strength during the first quarter was largely driven by revenue growth of 51% in our digital segment, which comprised 78% of consolidated revenue. Our broadcast businesses, and, in particular, audio, helped drive our strong margins and cash flow. Simultaneously, our strategic expansion of our commercial partnerships with some of the world’s leading technology platforms has positioned us at the forefront of digital innovation across emerging economies, including Latin America, Southeast Asia, Africa, and Pakistan when we complete our investment in Jack of Digital. We are excited about the enormous opportunities that lie in front of us and look forward to sharing our progress throughout the year.”

Quarterly Cash Dividend

The Company announced today that its Board of Directors approved a quarterly cash dividend to shareholders of $0.025 per share on the Company’s Class A, Class B and Class U common stock, in an aggregate amount of approximately $2.1 million. The quarterly dividend will be payable on June 30, 2022 to shareholders of record as of the close of business on June 16, 2022, and the common stock will trade ex-dividend on June 15, 2022. 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.

Share Repurchase Program

On March 1, 2022, the Board of Directors approved the repurchase of up to $20 million of the Company’s common stock. Under this share repurchase program, the Company is authorized to purchase shares from time to time through open market purchases or negotiated purchases, subject to market conditions and other factors. On the same date, the Board terminated the Company’s previous share repurchase program of the Company’s common stock. During the first quarter the Company repurchased $7.1 million of its Class A common stock.

Investment in Jack of Digital

As previously announced, the Company has entered into a definitive agreement to acquire a strategic stake in Jack of Digital, a digital marketing services company that serves as the exclusive advertising sales partner of TikTok in Pakistan. Subject to regulatory approvals and other pre-closing conditions, the Company anticipates that the investment will be completed during the second quarter of 2022. With this investment, the Company enhances its presence in South Asia.

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 9.

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

	Three-Month Period
	Ended March 31,
	2022			2021			% Change
Net revenue	$	197,172		$	148,880			32	%
Cost of revenue – digital (1)		129,891			84,756			53	%
Operating expenses (2)		43,862			40,414			9	%
Corporate expenses (3)		8,724			7,158			22	%
Foreign currency (gain) loss		(847	)		586		*

Consolidated adjusted EBITDA (4)		18,113			14,195			28	%

Free cash flow (5)	$	14,327		$	13,029			10	%

Net income (loss)	$	1,887		$	7,002			(73	)%
Net (income) loss attributable to redeemable noncontrolling interest	$	–		$	(1,573	)	*
Net income (loss) attributable to common stockholders	$	1,887		$	5,429			(65	)%

Net income (loss) per share attributable to common stockholders, basic and diluted	$	0.02		$	0.06			(67	)%
Weighted average common shares outstanding, basic		86,522,378			85,041,628
Weighted average common shares outstanding, diluted		88,630,216			86,986,581

(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 $1.0 million and $0.3 million of non-cash stock-based compensation for the three-month periods ended March 31, 2022 and 2021, respectively.
(3)		Corporate expenses include $1.6 million and $0.8 million of non-cash stock-based compensation for the three-month periods ended March 31, 2022 and 2021, respectively.
(4)		Consolidated adjusted EBITDA means net income (loss) plus gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation included in operating and corporate expenses, net interest expense, other operating gain (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from the Federal Communications Commission, or FCC, spectrum incentive auction less related expenses, expenses associated with investments, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings. We use the term consolidated adjusted EBITDA because that measure is defined in the agreement governing our current credit facility (“the 2017 Credit Facility”) and does not include gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation, net interest expense, other income (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from FCC spectrum incentive auction less related expenses, expenses associated with investments, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings.
(5)		Free cash flow is defined as consolidated adjusted EBITDA less cash paid for income taxes, net interest expense, capital expenditures and non-recurring cash expenses plus dividend income, and other operating gain (loss). Net interest expense is defined as interest expense, less non-cash interest expense relating to amortization of debt finance costs, and less interest income.

Unaudited Financial Results (In thousands)

	Three-Month Period
	Ended March 31,
	2022			2021			% Change
Net revenue	$	197,172		$	148,880			32	%
Cost of revenue – digital (1)		129,891			84,756			53	%
Operating expenses (1)		43,862			40,414			9	%
Corporate expenses (1)		8,724			7,158			22	%
Depreciation and amortization		6,395			5,184			23	%
Change in fair value of contingent consideration		5,100			–		*
Impairment charge		–			1,326			(100	)%
Foreign currency (gain) loss		(847	)		586		*
Other operating (gain) loss		(119	)		(1,913	)		(94	)%

Operating income (loss)		4,166			11,369			(63	)%
Interest expense, net		(1,430	)		(1,577	)		(9	)%
Dividend income		3			2			50	%

Income (loss) before income taxes		2,739			9,794			(72	)%
Income tax benefit (expense)		(852	)		(2,792	)		(69	)%

Net income (loss)		1,887			7,002			(73	)%
Net (income) loss attributable to redeemable noncontrolling interest		–			(1,573	)	*
Net income (loss) attributable to common stockholders	$	1,887		$	5,429			(65	)%

(1)

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

Net revenue in the first quarter of 2022 totaled $197.2 million, up 32% from $148.9 million in the prior-year period. Of the overall increase, approximately $52.2 million was attributable to our digital segment and was primarily due to advertising revenue growth from our digital commercial partnerships business and our acquisitions of MediaDonuts and 365 Digital during the third and fourth quarters of 2021, respectively, both of which did not contribute to net revenue in the comparable period ended March 31, 2021. In addition, of the overall increase, approximately $1.3 million was attributable to our audio segment primarily due to increases in local advertising revenue and political advertising revenue. The overall increase was partially offset by a decrease of approximately $5.2 million attributable to our television segment, primarily due to decreases in local and national advertising revenue, which was mainly attributed to the expiration of our Univision and UniMás network affiliation agreements in Orlando, Tampa and Washington, D.C. on December 31, 2021. Additionally, the decrease in our television segment was attributed to a decrease in revenue from spectrum usage rights, and a decrease in retransmission consent revenue, partially offset by an increase in political advertising revenue.

Cost of revenue in the first quarter of 2022 totaled $129.9 million, up 53% from $84.8 million in the prior-year period. The increase was primarily due to increased costs of revenue related to advertising revenue growth from our digital commercial partnerships business, and our acquisitions of MediaDonuts and 365 Digital during the third and fourth quarters of 2021, respectively, both of which did not incur cost of revenue for us in the comparable period ended March 31, 2021.

Operating expenses in the first quarter of 2022 totaled $43.9 million, up 9% from $40.4 million in the prior-year period. Of the overall increase, approximately $4.4 million was attributable to our digital segment and was primarily due to an increase in expenses associated with the increase in digital advertising revenue, an increase in salary expense and our acquisitions of MediaDonuts and 365 Digital during the third and fourth quarters of 2021, respectively, both of which did not incur operating expenses for us in the comparable period ended March 31, 2021. The overall increase was partially offset by a decrease of approximately $0.7 million that was attributable to our television segment primarily due to a decrease in expenses associated with the decrease in local and national advertising revenue, and a decrease of approximately $0.3 million that was attributable to our audio segment primarily due to a decrease in rating services expense.

Corporate expenses in the first quarter of 2022 totaled $8.7 million, up 22% from $7.2 million in the prior-year period. The increase was primarily due to increases in non-cash stock-based compensation, salaries, and audit fees.

Balance Sheet and Related Metrics

Cash and marketable securities as of March 31, 2022 totaled approximately $211.6 million. Total debt was $211.8 million. Net of $75 million of cash and marketable securities, total leverage as defined in the Company’s credit agreement was 1.5 times as of March 31, 2022. Net of total cash and marketable securities, total leverage was 0.0 times.

Unaudited Segment Results (In thousands)

	Three-Month Period
	Ended March 31,
	2022		2021		% Change
Net Revenue
Digital	$	153,711	$	101,482		51	%
Television		30,867		36,091		(14	)%
Audio		12,594		11,307		11	%
Total	$	197,172	$	148,880		32	%

Cost of Revenue – digital (1)
Digital	$	129,891	$	84,756		53	%

Operating Expenses (1)
Digital		15,235		10,850		40	%
Television		19,240		19,884		(3	)%
Audio		9,387		9,680		(3	)%
Total	$	43,862	$	40,414		9	%

Corporate Expenses (1)	$	8,724	$	7,158		22	%

Consolidated adjusted EBITDA (1)	$	18,113	$	14,195		28	%

(1)

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

Notice of Conference Call

Entravision Communications Corporation will hold a conference call to discuss its first quarter 2022 results on Thursday, May 5, 2022 at 5 p.m. Eastern Time. To access the conference call, please dial (877) 407-9716 (U.S.) or (201) 493-6779 (Int’l) ten minutes prior to the start time and reference Conference ID number 13728063. 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 leading global advertising, media and ad-tech solutions company connecting brands to consumers by representing top platforms and publishers. Our dynamic portfolio includes digital, television and audio offerings. Digital, our largest revenue segment, is comprised of four business units: our digital sales representation business; Smadex, our programmatic ad purchasing platform; our branding and mobile performance solutions business; and our digital audio business. Through our digital sales representation business, we connect global media companies such as Meta, Twitter, TikTok and Spotify with advertisers in primarily emerging growth markets worldwide. Smadex is our mobile-first demand side platform, enabling advertisers to execute performance campaigns using machine learning. We also offer a branding and mobile performance solutions business, which provides managed services to advertisers looking to connect with global consumers, primarily on mobile devices, and our digital audio business provides digital audio advertising solutions for advertisers in the Americas. In addition to digital, Entravision has 49 television stations and is the largest affiliate group of the Univision and UniMás television networks. Entravision also manages 46 primarily Spanish-language radio stations that feature nationally recognized, Emmy award-winning talent. 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
	Ended March 31,
	2022			2021
Net revenue	$	197,172		$	148,880

Expenses:
Cost of revenue – digital		129,891			84,756
Direct operating expenses		27,823			26,561
Selling, general and administrative expenses		16,039			13,853
Corporate expenses		8,724			7,158
Depreciation and amortization		6,395			5,184
Change in fair value of contingent consideration		5,100			–
Impairment charge		–			1,326
Foreign currency (gain) loss		(847	)		586
Other operating (gain) loss		(119	)		(1,913	)
		193,006			137,511
Operating income (loss)		4,166			11,369
Interest expense		(1,836	)		(1,717	)
Interest income		406			140
Dividend income		3			2
Income (loss) before income taxes		2,739			9,794
Income tax benefit (expense)		(852	)		(2,792	)

Net income (loss)		1,887			7,002
Net (income) loss attributable to redeemable noncontrolling interest		–			(1,573	)
Net income (loss) attributable to common stockholders	$	1,887		$	5,429

Basic and diluted earnings per share:
Net income (loss) per share attributable to common stockholders, basic and diluted	$	0.02		$	0.06

Cash dividends declared per common share, basic and diluted	$	0.03		$	0.03

Weighted average common shares outstanding, basic		86,522,378			85,041,628
Weighted average common shares outstanding, diluted		88,630,216			86,986,581

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

	March 31,			December 31,
	2022			2021
ASSETS
Current assets
Cash and cash equivalents	$	126,574		$	185,094
Marketable securities		85,010			–
Restricted cash		749			749
Trade receivables, net of allowance for doubtful accounts		173,419			201,747
Assets held for sale		1,963			1,963
Prepaid expenses and other current assets		36,341			18,925
Total current assets		424,056			408,478
Property and equipment, net		60,174			62,498
Intangible assets subject to amortization, net		61,476			64,034
Intangible assets not subject to amortization		209,053			209,053
Goodwill		71,708			71,708
Deferred income taxes		1,462			1,462
Operating leases right of use asset		25,596			25,582
Other assets		8,084			8,527
Total assets	$	861,609		$	851,342


LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Current maturities of long-term debt	$	4,947		$	4,903
Accounts payable and accrued expenses		222,610			212,655
Operating lease liabilities		6,808			7,304
Total current liabilities		234,365			224,862
Long-term debt, less current maturities, net of unamortized debt issuance costs		206,816			207,416
Long-term operating lease liabilities		21,505			20,988
Other long-term liabilities		79,076			72,930
Deferred income taxes		68,092			68,220
Total liabilities		609,854			594,416

Stockholders’ equity
Class A common stock		6			6
Class B common stock		2			2
Class U common stock		1			1
Additional paid-in capital		773,613			780,388
Accumulated deficit		(520,607	)		(522,494	)
Accumulated other comprehensive income (loss)		(1,260	)		(977	)
Total stockholders’ equity		251,755			256,926
Total liabilities and stockholders’ equity	$	861,609		$	851,342

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

	Three-Month Period
	Ended March 31,
	2022			2021
Cash flows from operating activities:
Net income (loss)	$	1,887		$	7,002
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		6,395			5,184
Impairment charge		—			1,326
Deferred income taxes		(359	)		2,987
Non-cash interest		280			139
Amortization of syndication contracts		116			119
Payments on syndication contracts		(118	)		(124	)
Non-cash stock-based compensation		2,573			1,071
(Gain) loss on disposal of property and equipment		(151	)		—
Change in fair value of contingent consideration		5,100			—
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		29,380			9,927
(Increase) decrease in prepaid expenses and other assets		(2,405	)		1,177
Increase (decrease) in accounts payable, accrued expenses and other liabilities		10,521			(5,356	)
Net cash provided by operating activities		53,219			23,452
Cash flows from investing activities:
Proceeds from sale of property and equipment and intangibles		164			—
Purchases of property and equipment		(1,547	)		(1,838	)
Purchases of marketable securities		(85,517	)		—
Proceeds from marketable securities		—			12,120
Net cash provided by investing activities		(86,900	)		10,282
Cash flows from financing activities:
Proceeds from stock option exercises		218			—
Tax payments related to shares withheld for share-based compensation plans		(257	)		(9	)
Payments on long-term debt		(750	)		(750	)
Dividends paid		(2,167	)		(2,126	)
Repurchase of Class A common stock		(7,142	)		—
Payment of contingent consideration		(14,730	)		—
Principal payments under finance lease obligation		(10	)		—
Net cash used in financing activities		(24,838	)		(2,885	)
Effect of exchange rates on cash, cash equivalents and restricted cash		(1	)		(24	)
Net increase (decrease) in cash, cash equivalents and restricted cash		(58,520	)		30,825
Cash, cash equivalents and restricted cash:
Beginning		185,843			119,911
Ending	$	127,323		$	150,736

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
	Ended March 31,
	2022			2021

Consolidated adjusted EBITDA (1)	$	18,113		$	14,195
EBITDA attributable to redeemable noncontrolling interest		–			2,837
Interest expense		(1,836	)		(1,717	)
Interest income		406			140
Dividend income		3			2
Income tax expense		(852	)		(2,792	)
Amortization of syndication contracts		(116	)		(119	)
Payments on syndication contracts		118			124
Non-cash stock-based compensation included in direct operating expenses		(958	)		(316	)
Non-cash stock-based compensation included in corporate expenses		(1,615	)		(755	)
Depreciation and amortization		(6,395	)		(5,184	)
Change in fair value of contingent consideration		(5,100	)		–
Impairment charge		–			(1,326	)
Other operating gain (loss)		119			1,913
Net (income) loss attributable to redeemable noncontrolling interest		–			(1,573	)
Net income (loss) attributable to common stockholders		1,887			5,429

Depreciation and amortization		6,395			5,184
Impairment charge		–			1,326
Deferred income taxes		(359	)		2,987
Non-cash interest		280			139
Amortization of syndication contracts		116			119
Payments on syndication contracts		(118	)		(124	)
Non-cash stock-based compensation		2,573			1,071
(Gain) loss on disposal of property and equipment		(151	)		–
Change in fair value of contingent consideration		5,100			–
Net income (loss) attributable to redeemable noncontrolling interest		–			1,573
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		29,380			9,927
(Increase) decrease in prepaid expenses and other assets		(2,405	)		1,177
Increase (decrease) in accounts payable, accrued expenses and other liabilities		10,521			(5,356	)
Cash flows from operating activities		53,219			23,452

(1)

Consolidated adjusted EBITDA is defined on page 2.

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

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

	Three-Month Period
	Ended March 31,
	2022			2021
Consolidated adjusted EBITDA (1)	$	18,113		$	14,195
Net interest expense (1)		(1,150	)		(1,438	)
Dividend income		3			2
Cash paid for income taxes		(1,211	)		195
Capital expenditures (2)		(1,547	)		(1,838	)
Other operating gain (loss)		119			1,913
Free cash flow (1)		14,327			13,029

Capital expenditures (2)		1,547			1,838
EBITDA attributable to redeemable noncontrolling interest		–			2,837
(Gain) loss on disposal of property and equipment		(151	)		–
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		29,380			9,927
(Increase) decrease in prepaid expenses and other assets		(2,405	)		1,177
Increase (decrease) in accounts payable, accrued expenses and other liabilities		10,521			(5,356	)
Cash Flows From Operating Activities	$	53,219		$	23,452

(1)		Consolidated adjusted EBITDA, net interest expense, and free cash flow are defined on page 2.
(2)		Capital expenditures are not part of the consolidated statement of operations.

View source version on businesswire.com:

https://www.businesswire.com/news/home/20220503006391/en/

Christopher T. Young

Chief Financial Officer

Entravision Communications Corporation

310-447-3870

Kimberly Esterkin

ADDO Investor Relations

310-829-5400

evc@addo.com

Source: Entravision Communications Corporation

May 5, 2022

Category: Earnings Reports