Category: Earnings Reports

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, 2021.

Fourth Quarter and Full Year 2021 Highlights

• All-time full-year record revenue and free cash flow
• Net revenue up 36% and 121% over the prior-year quarter and full year, respectively
• Net income attributable to common stockholders down 81% over the prior-year quarter
• Net income attributable to common stockholders of $29.3 million, compared to a loss of $3.9 million in the prior full year
• Consolidated adjusted EBITDA up 1% and 46% over the prior-year quarter and full year, respectively
• Operating cash flow down 70% and up 3% over the prior-year quarter and full year, respectively
• Free cash flow up 8% and 83% over the prior-year quarter and full year, respectively
• Acquisition of remaining 49% of Cisneros Interactive
• Expansion into Asia and Africa with the acquisitions of MediaDonuts and 365 Digital
• Quarterly cash dividend of $0.025 per share
• New $20 million share repurchase program

“2021 was a transformational year for Entravision, with revenue and free cash flow reaching record levels,” said Walter Ulloa, Chairman and Chief Executive Officer. “Our growth for the fourth quarter and full year 2021 was largely driven by the expansion of our digital business, which comprised 73% of our net revenue. Core television and audio also contributed to our overall strength during the year as we maintained our exceptional talent, programming and ratings. In addition, we saw great advancements in profitability. Full year consolidated adjusted EBITDA of $88.0 million improved 46% over 2020, demonstrating our growth and continued expense management.”

Mr. Ulloa continued, “I am very pleased with the continued transformation of Entravision’s business. Through both organic growth and strategic acquisitions we have become a leading global advertising solutions, media and technology company, serving over 3,000 clients each month in over 30 countries. We connect brands and advertisers with consumers in primarily emerging growth markets around the world and are excited about this enormous opportunity. I believe we have a talented, experienced and energetic team of professionals around the world with the expertise and resources to continue to grow Entravision’s business into the future.”

Quarterly Cash Dividend

The Company also announced today that its Board of Directors approved a quarterly cash dividend to shareholders of $0.025 per share on the Company’s Class A, Class B and Class U common stock, in an aggregate amount of approximately $2.1 million. The quarterly dividend will be payable on March 31, 2022 to shareholders of record as of the close of business on March 16, 2022, and the common stock will trade ex-dividend on March 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 the new 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.

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 Months Ended												Twelve Months Ended
		December 31,												December 31,
		2021				2020				% Change				2021				2020				% Change
Net revenue		$	233,894			$	171,683				36	%		$	760,192			$	344,026				121	%
Cost of revenue – digital (1)			148,399				85,326				74	%			466,517				106,928				336	%
Operating expenses (2)			48,065				45,945				5	%			173,034				153,313				13	%
Corporate expenses (3)			11,237				9,296				21	%			32,993				27,807				19	%
Foreign currency (gain) loss			54				(1,725	)		*					508				(1,052	)		*
Consolidated adjusted EBITDA (4)			32,856				32,646				1	%			88,033				60,419				46	%
Free cash flow (5)		$	30,875			$	28,641				8	%		$	78,706			$	43,029				83	%
Net income (loss)		$	3,868			$	22,851				(83	)%		$	35,230			$	(1,387	)		*
Net (income) loss attributable to redeemable noncontrolling interest		$	–			$	(2,523	)		*				$	(5,938	)		$	(2,523	)			135	%
Net income (loss) attributable to common stockholders		$	3,868			$	20,328				(81	)%		$	29,292			$	(3,910	)		*
Net income (loss) per share attributable to common stockholders, basic		$	0.05			$	0.24				(79	)%		$	0.34			$	(0.05	)		*
Net income (loss) per share attributable to common stockholders, diluted		$	0.04			$	0.24				(83	)%		$	0.33			$	(0.05	)		*
Weighted average common shares outstanding, basic			85,579,385				84,297,592								85,301,603				84,231,212
Weighted average common shares outstanding, diluted			88,556,177				85,985,630								87,910,603				84,231,212

(1)		Consists primarily of the costs of online media acquired from third-party publishers. Media cost is classified as cost of revenue in the period in which the corresponding revenue is recognized.
(2)		Operating expenses includes direct operating and selling, general and administrative expenses. Included in operating expenses are $2.3 million and $0.9 million of non-cash stock-based compensation for the three-month periods ended December 31, 2021 and 2020, respectively, and $3.2 million and $1.2 million of non-cash stock-based compensation for the twelve-month periods ended December 31, 2021 and 2020, respectively.
(3)		Corporate expenses include $4.0 million and $1.9 million of non-cash stock-based compensation for the three-month periods ended December 31, 2021 and 2020, respectively, and $6.4 million and $3.9 million of non-cash stock-based compensation for the twelve-month periods ended December 31, 2021 and 2020, respectively.
(4)		Consolidated adjusted EBITDA means net income (loss) plus gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation included in operating and corporate expenses, net interest expense, other operating gain (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from the Federal Communications Commission, or FCC, spectrum incentive auction less related expenses, expenses associated with investments, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings. We use the term consolidated adjusted EBITDA because that measure is defined in the agreement governing our current credit facility (“the 2017 Credit Facility”) and does not include gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation, net interest expense, other income (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from FCC spectrum incentive auction less related expenses, expenses associated with investments, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings.
(5)		Free cash flow is defined as consolidated adjusted EBITDA less cash paid for income taxes, net interest expense, capital expenditures and non-recurring cash expenses plus dividend income, and other operating gain (loss). Net interest expense is defined as interest expense, less non-cash interest expense relating to amortization of debt finance costs, and less interest income.

Unaudited Financial Results (In thousands)

		Three Months Ended
		December 31,
		2021				2020				% Change
Net revenue		$	233,894			$	171,683				36	%
Cost of revenue – digital (1)			148,399				85,326				74	%
Operating expenses (1)			48,065				45,945				5	%
Corporate expenses (1)			11,237				9,296				21	%
Depreciation and amortization			6,261				4,963				26	%
Change in fair value of contingent consideration			8,224				—			*
Impairment charge			1,419				200				610	%
Foreign currency (gain) loss			54				(1,725	)		*
Other operating (gain) loss			(2,131	)			(1,346	)			58	%
Operating income (loss)			12,366				29,024				(57	)%
Interest expense, net			(1,723	)			(1,474	)			17	%
Dividend income			2				2				0	%
Income before income taxes			10,645				27,552				(61	)%
Income tax (expense) benefit			(6,777	)			(4,701	)			44	%
Net income (loss)			3,868				22,851				(83	)%
Net (income) loss attributable to redeemable noncontrolling interest			–				(2,523	)		*
Net income (loss) attributable to common stockholders		$	3,868			$	20,328				(81	)%

(1)

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

Net revenue in the fourth quarter of 2021 totaled $233.9 million, up 36% from $171.7 million in the prior-year period. Of the overall increase, approximately $72.6 million was attributable to our digital segment and was primarily due to advertising revenue resulting from our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which became wholly-owned during the third quarter of 2021, and due to advertising revenue resulting from our acquisitions of MediaDonuts and 365 Digital during the third and fourth quarters of 2021, respectively. The overall increase was partially offset by a decrease of approximately $10.4 million that was attributable to our television and audio segments primarily due to decreases in political advertising revenue, partially offset by increases in local and national advertising revenue.

Cost of revenue in the fourth quarter of 2021 totaled $148.4 million compared to $85.3 million in the prior-year period. The increase was primarily due to increased costs of revenue following our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which became wholly-owned during the third quarter of 2021, and due to our acquisitions of MediaDonuts and 365 Digital during the third and fourth quarters of 2021, respectively.

Operating expenses in the fourth quarter of 2021 totaled $48.1 million, up 5% from $45.9 million in the prior-year period. Of the overall increase, approximately $3.3 million was attributable to our digital segment and was primarily due to our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which became wholly-owned during the third quarter of 2021, and due to operating expenses resulting from our acquisitions of MediaDonuts and 365 Digital during the third and fourth quarters of 2021, respectively. The overall increase was partially offset by decreases in our television and audio segments primarily due to a decrease in expenses associated with the decrease in advertising revenue, and decreases in bad debt and salary expense associated with furloughs and layoffs that occurred in 2020 because of the COVID-19 pandemic.

Corporate expenses in the fourth quarter of 2021 totaled $11.2 million, up 21% from $9.3 million in the prior-year period. The increase was primarily due to an increase in non-cash stock-based compensation expense.

Unaudited Financial Results (In thousands)

		Twelve Months Ended
		December 31,
		2021				2020				% Change
Net revenue		$	760,192			$	344,026				121	%
Cost of revenue – digital (1)			466,517				106,928				336	%
Operating expenses (1)			173,034				153,313				13	%
Corporate expenses (1)			32,993				27,807				19	%
Depreciation and amortization			22,420				17,282				30	%
Change in fair value of contingent consideration			8,224				—			*
Impairment charge			3,023				40,035				(92	)%
Foreign currency (gain) loss			508				(1,052	)		*
Other operating (gain) loss			(6,998	)			(6,895	)			1	%
Operating income (loss)			60,471				6,608				815	%
Interest expense, net			(6,775	)			(6,517	)			4	%
Dividend income			213				28				661	%
Income before income taxes			53,909				119			*
Income tax (expense) benefit			(18,679	)			(1,506	)			1140	%
Net income (loss)			35,230				(1,387	)		*
Net (income) loss attributable to redeemable noncontrolling interest			(5,938	)			(2,523	)			135	%
Net income (loss) attributable to common stockholders		$	29,292			$	(3,910	)		*

(1)

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

Net revenue totaled $760.2 million for the year ended December 31, 2021, up 121% from $344.0 million for the year ended December 31, 2020. Of the overall increase, approximately $412.0 million was attributable to our digital segment and was primarily due to advertising revenue resulting from our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which became wholly-owned during the third quarter of 2021, and due to advertising revenue resulting from our acquisitions of MediaDonuts and 365 Digital during the third and fourth quarters of 2021, respectively. In addition, of the overall increase, approximately $11.7 million was attributable to our audio segment primarily due to increases in local and national advertising revenue, partially offset by a decrease in political advertising revenue. The overall increase was partially offset by a decrease of approximately $7.6 million attributable to our television segment, primarily due a decrease in political advertising revenue, partially offset by increases in local and national advertising revenue, revenue from spectrum usage rights and retransmission consent revenue.

Cost of revenue in our digital segment totaled $466.5 million for the year ended December 31, 2021 compared to $106.9 million for the year ended December 31, 2020. The increase was primarily due to increased costs of revenue following our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which became wholly-owned during the third quarter of 2021, and due to our acquisitions of MediaDonuts and 365 Digital during the third and fourth quarters of 2021, respectively.

Operating expenses totaled $173.0 million for the year ended December 31, 2021, up 13% from $153.3 million for the year ended December 31, 2020. Of the overall increase, approximately $21.0 million was attributable to our digital segment and was primarily due to our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which became wholly-owned during the third quarter of 2021, and due to operating expenses resulting from our acquisitions of MediaDonuts and 365 Digital during the third and fourth quarters of 2021, respectively. The overall increase was partially offset by decreases in our television and audio segments primarily due to decreases in bad debt and salary expense associated with furloughs and layoffs that occurred in 2020 because of the COVID-19 pandemic.

Corporate expenses totaled $33.0 million for the year ended December 31, 2021, up 19% from $27.8 million for the year ended December 31, 2020. The increase was primarily due to increases in salaries, non-cash stock-based compensation expense and audit fees.

Balance Sheet and Related Metrics

Cash and marketable securities as of December 31, 2021 totaled approximately $185.1 million. Total debt was $212.3 million. Net of $75 million of cash and marketable securities, total leverage as defined in the Company’s credit agreement was 1.6 times as of December 31, 2021. Net of total cash and marketable securities, total leverage was 0.3 times.

Unaudited Segment Results (In thousands)

		Three Months Ended												Twelve Months Ended
		December 31,												December 31,
			2021				2020			% Change					2021				2020			% Change
Net Revenue
Digital		$	177,512			$	104,950				69	%		$	555,338			$	143,309				288	%
Television			40,241				50,516				(20	)%			146,839				154,456				(5	)%
Audio			16,141				16,217				(0	)%			58,015				46,261				25	%
Total		$	233,894			$	171,683				36	%		$	760,192			$	344,026				121	%
Cost of Revenue – Digital (1)		$	148,399			$	85,326				74	%		$	466,517			$	106,928				336	%
Operating Expenses (1)
Digital		$	15,540			$	12,228				27	%		$	51,604			$	30,631				68	%
Television			21,849				22,422				(3	)%			81,397				80,893				1	%
Audio			10,676				11,295				(5	)%			40,033				41,789				(4	)%
Total		$	48,065			$	45,945				5	%		$	173,034			$	153,313				13	%
Corporate Expenses (1)		$	11,237			$	9,296				21	%		$	32,993			$	27,807				19	%
Foreign currency (gain) loss		$	54			$	(1,725	)		*				$	508			$	(1,052	)		*
Consolidated adjusted EBITDA (1)		$	32,856			$	32,646				1	%		$	88,033			$	60,419				46	%

(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 2021 results on Thursday, March 3, 2022 at 4:30 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 13726389. 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 solutions, media and technology company connecting brands to consumers. 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 50 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.

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,
		2021				2020				2021				2020
Net revenue		$	233,894			$	171,683			$	760,192			$	344,026
Expenses:
Cost of revenue – digital			148,399				85,326				466,517				106,928
Direct operating expenses			32,969				31,912				116,449				104,909
Selling, general and administrative expenses			15,096				14,033				56,585				48,404
Corporate expenses			11,237				9,296				32,993				27,807
Depreciation and amortization			6,261				4,963				22,420				17,282
Change in fair value of contingent consideration			8,224				—				8,224				—
Impairment charge			1,419				200				3,023				40,035
Foreign currency (gain) loss			54				(1,725	)			508				(1,052	)
Other operating (gain) loss			(2,131	)			(1,346	)			(6,998	)			(6,895	)
			221,528				142,659				699,721				337,418
Operating income (loss)			12,366				29,024				60,471				6,608
Interest expense			(1,733	)			(1,592	)			(7,020	)			(8,265	)
Interest income			10				118				245				1,748
Dividend income			2				2				213				28
Income before income taxes			10,645				27,552				53,909				119
Income tax (expense) benefit			(6,777	)			(4,701	)			(18,679	)			(1,506	)
Net income (loss)			3,868				22,851				35,230				(1,387	)
Net (income) loss attributable to redeemable noncontrolling interest			–				(2,523	)			(5,938	)			(2,523	)
Net income (loss) attributable to common stockholders		$	3,868			$	20,328			$	29,292			$	(3,910	)
Basic and diluted earnings per share:
Net income (loss) per share attributable to common stockholders, basic		$	0.05			$	0.24			$	0.34			$	(0.05	)
Net income (loss) per share attributable to common stockholders, diluted		$	0.04			$	0.24			$	0.33			$	(0.05	)
Cash dividends declared per common share, basic and diluted		$	0.03			$	0.03			$	0.10			$	0.13
Weighted average common shares outstanding, basic			85,579,385				84,297,592				85,301,603				84,231,212
Weighted average common shares outstanding, diluted			88,556,177				85,985,630				87,910,603				84,231,212

Entravision Communications Corporation Consolidated Statements of Cash Flows (In thousands; unaudited)
		Three-Month Period								Twelve-Month Period
		Ended December 31,								Ended December 31,
		2021				2020				2021				2020
Cash flows from operating activities:
Net income (loss)		$	3,868			$	22,851			$	35,230			$	(1,387	)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			6,261				4,963				22,420				17,282
Impairment charge			1,419				200				3,023				40,035
Deferred income taxes			6,206				2,519				14,554				(6,225	)
Non-cash interest			153				158				604				649
Amortization of syndication contracts			118				121				475				504
Payments on syndication contracts			(119	)			(133	)			(473	)			(458	)
Non-cash stock-based compensation			6,295				2,717				9,595				5,125
(Gain) loss on disposal of property and equipment			(2,007	)			36				(4,629	)			(731	)
Changes in assets and liabilities:
(Increase) decrease in trade receivables, net			(33,215	)			(34,385	)			(49,109	)			(20,100	)
(Increase) decrease in prepaid expenses and other current assets			4,515				4,813				6,782				11,526
Increase (decrease) in accounts payable, accrued expenses and other liabilities			17,979				33,872				26,781				17,229
Net cash provided by operating activities			11,473				37,732				65,253				63,449
Cash flows from investing activities:
Proceeds from sale of property and equipment and intangibles			917				—				10,348				5,089
Purchases of property and equipment			(1,550	)			(1,319	)			(5,819	)			(9,060	)
Purchases of intangibles			—				—				—				(158	)
Purchase of a businesses, net of cash acquired			(1,413	)			(21,261	)			(14,260	)			(21,261	)
Proceeds from marketable securities			—				25,000				27,800				63,480
Purchases of investments			—				—				(800	)			—
Net cash provided by (used in) investing activities			(2,046	)			2,420				17,269				38,090
Cash flows from financing activities:
Proceeds from stock option exercises			2				—				416				—
Tax payments related to shares withheld for share-based compensation plans			(4,201	)			(1,411	)			(4,729	)			(1,426	)
Payments on long-term debt			(750	)			(750	)			(3,000	)			(3,000	)
Dividends paid			(2,136	)			(2,103	)			(8,531	)			(10,531	)
Repurchase of Class A common stock			—				—				—				(525	)
Principal payments under finance lease obligation			(126	)			—				(126	)			—
Payments of capitalized debt offering and issuance costs			—				—				(604	)			—
Net cash used in financing activities			(7,211	)			(4,264	)			(16,574	)			(15,482	)
Effect of exchange rates on cash, cash equivalents and restricted cash			(13	)			4				(16	)			(3	)
Net increase (decrease) in cash, cash equivalents and restricted cash			2,203				35,892				65,932				86,054
Cash, cash equivalents and restricted cash:
Beginning			183,640				84,019				119,911				33,857
Ending		$	185,843			$	119,911			$	185,843			$	119,911

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,
			2021				2020				2021				2020
Consolidated adjusted EBITDA (1)		$	32,856			$	32,646			$	88,033			$	60,419
EBITDA attributable to redeemable noncontrolling interest			—				3,436				9,127				3,436
Interest expense			(1,733	)			(1,592	)			(7,020	)			(8,265	)
Interest income			10				118				245				1,748
Income tax (expense) benefit			(6,777	)			(4,701	)			(18,679	)			(1,506	)
Amortization of syndication contracts			(118	)			(121	)			(475	)			(504	)
Payments on syndication contracts			119				133				473				458
Non-cash stock-based compensation included in direct operating expenses			(2,263	)			(865	)			(3,234	)			(1,247	)
Non-cash stock-based compensation included in corporate expenses			(4,032	)			(1,852	)			(6,361	)			(3,878	)
Depreciation and amortization			(6,261	)			(4,963	)			(22,420	)			(17,282	)
Change in fair value of contingent consideration			(8,224	)			—				(8,224	)			–
Non-recurring severance charge			(423	)			(536	)			(423	)			(1,654	)
Dividend income			2				2				213				28
Other operating gain (loss)			2,131				1,346				6,998				6,895
Impairment charge			(1,419	)			(200	)			(3,023	)			(40,035	)
Net (income) loss attributable to redeemable noncontrolling interest			—				(2,523	)			(5,938	)			(2,523	)
Net income (loss) attributable to common stockholders			3,868				20,328				29,292				(3,910	)
Depreciation and amortization			6,261				4,963				22,420				17,282
Impairment charge			1,419				200				3,023				40,035
Deferred income taxes			6,206				2,519				14,554				(6,225	)
Amortization of debt issuance costs			153				158				604				649
Amortization of syndication contracts			118				121				475				504
Payments on syndication contracts			(119	)			(133	)			(473	)			(458	)
Non-cash stock-based compensation			6,295				2,717				9,595				5,125
(Gain) loss on disposal of property and equipment			(2,007	)			36				(4,629	)			(731	)
Net (income) loss attributable to redeemable noncontrolling interest			—				2,523				5,938				2,523
Changes in assets and liabilities:
(Increase) decrease in accounts receivable			(33,215	)			(34,385	)			(49,109	)			(20,100	)
(Increase) decrease in prepaid expenses and other assets			4,515				4,813				6,782				11,526
Increase (decrease) in accounts payable, accrued expenses and other liabilities			17,979				33,872				26,781				17,229
Net cash provided by (used in ) operating activities		$	11,473			$	37,732			$	65,253			$	63,449

(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,
			2021				2020				2021				2020
Consolidated adjusted EBITDA (1)		$	32,856			$	32,646			$	88,033			$	60,419
Net, cash interest expense (1)			(1,570	)			(1,316	)			(6,171	)			(5,868	)
Dividend income			2				2				213				28
Cash paid for income taxes			(571	)			(2,182	)			(4,125	)			(7,731	)
Capital expenditures (2)			(1,550	)			(1,319	)			(5,819	)			(9,060	)
Other operating gain (loss)			2,131				1,346				6,998				6,895
Non-recurring cash severance charge			(423	)			(536	)			(423	)			(1,654	)
Free cash flow (1)			30,875				28,641				78,706				43,029
Capital expenditures (2)			1,550				1,319				5,819				9,060
EBITDA attributable to redeemable noncontrolling interest			—				3,436				9,127				3,436
Change in fair value of contingent consideration			(8,224	)			—				(8,224	)			—
(Gain) loss on disposal of property and equipment			(2,007	)			36				(4,629	)			(731	)
Changes in assets and liabilities:
(Increase) decrease in accounts receivable			(33,215	)			(34,385	)			(49,109	)			(20,100	)
(Increase) decrease in prepaid expenses and other assets			4,515				4,813				6,782				11,526
Increase (decrease) in accounts payable, accrued expenses and other liabilities			17,979				33,872				26,781				17,229
Cash Flows From Operating Activities		$	11,473			$	37,732			$	65,253			$	63,449

(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:

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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

SANTA MONICA, Calif.–(BUSINESS WIRE)–
Entravision (NYSE: EVC), a leading global advertising, media and ad-tech solutions company connecting brands to consumers by representing top platforms and publishers, announced that it will release its fourth quarter and full year 2021 financial results after market close on Thursday, March 3, 2022. The Company will host a conference call that day at 4:30 p.m. Eastern Time to discuss the fourth quarter and full year 2021 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 Thursday, March 17, 2022 which can be accessed by dialing (844) 512-2921 (U.S.) or (412) 317-6671 (International) and entering the passcode 13726389. 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 of services includes digital, television and radio offerings. Digital, our largest revenue segment, is comprised of five core businesses: Entravision Digital, Smadex, Cisneros Interactive, MediaDonuts, and 365 Digital. Entravision Digital provides branding and performance digital solutions to clients and small- and mid-size businesses throughout the world. Smadex provides cutting-edge mobile programmatic solutions and demand-side platforms which enable advertisers to effectively execute performance campaigns using machine-learned bidding algorithms. Cisneros Interactive provides unique digital marketing solutions representing major global publishers and ad-tech platforms in Latin America, while also managing the leading digital audio network and solutions player Audio.Ad. MediaDonuts provides digital marketing performance and branding services in the Southeast Asia region and maintains unique commercial partnerships with some of the world’s leading digital publishers and social media platforms. 365 Digital is a digital advertising solutions provider that offers exclusive sales representations with major global platforms in South Africa. Beyond digital, Entravision has 50 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 all of our marketing, media, and technology offerings at entravision.com or connect with us on LinkedIn and Facebook.

View source version on businesswire.com:

https://www.businesswire.com/news/home/20220225005533/en/

Christopher T. Young

Chief Financial Officer

Entravision

310-447-3870

Kimberly Esterkin

ADDO Investor Relations

310-829-5400

evc@addo.com

Source: Entravision

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

Third Quarter 2021 Highlights

• Net revenue up 216% over the prior-year period
• Net income attributable to common stockholders up 35% over the prior-year period
• Consolidated Adjusted EBITDA up 42% over the prior-year period
• Operating cash flow up 50% over the prior-year period
• Free cash flow up 112% over the prior-year period
• Acquisition of Cisneros Interactive’s remaining 49% (now wholly-owned)
• Acquisition of MediaDonuts, marking entry into Southeast Asia
• Quarterly cash dividend of $0.025 per share
• Acquisition of 365 Digital, marking entry into Africa

“Entravision reported very strong results for the third quarter, with revenue improving 216% and adjusted EBITDA increasing by 42% over the prior-year period,” said Walter F. Ulloa, Chairman and Chief Executive Officer. “Thanks to the exceptional work of our entire team, we saw growth in core revenue across each of our business segments, with digital, in particular, making a significant contribution to our overall performance and now comprising 73% of total revenue.”

Mr. Ulloa continued, “During the quarter, we continued to strengthen our digital segment, both organically and through acquisitions. At the end of August, we acquired the remaining 49 percent of Cisneros Interactive, which is now wholly-owned by us, expanding our reach in Latin America. Prior to that, in July, we acquired MediaDonuts, marking our entry into Southeast Asia. Finally, just today, we announced the acquisition of 365 Digital, a digital marketing solutions agency in South Africa and marking our entry into Africa. Our digital operations now have a presence on five continents. These acquisitions will serve us favorably as we expand our client base and geographic footprint. We are evolving our business to meet the demands of our clients while generating value for all of our stakeholders as we build a company that is truly a digital media powerhouse.”

Acquisition of 365 Digital

The Company announced today in a separate press release that, on November 1, 2021, it acquired 100% of the issued and outstanding shares of stock of 365 Digital Media (Pty) Ltd, a digital marketing solutions agency headquartered in South Africa, marking the Company’s entry into Africa, and bringing the Company’s digital presence to five continents. The transaction, funded from the Company’s cash on hand, includes a purchase price of approximately $1.9 million in cash, and earn-out payments based upon the achievement of certain EBITDA targets in calendar years 2022, 2023 and 2024, calculated as a pre-determined multiple of EBITDA for each of those years.

Quarterly Cash Dividend

The Company also announced today that its Board of Directors approved a quarterly cash dividend to shareholders of $0.025 per share on the Company’s Class A, Class B and Class U common stock, in an aggregate amount of approximately $2.1 million. The quarterly dividend will be payable on December 31, 2021 to shareholders of record as of the close of business on December 16, 2021, and the common stock will trade ex-dividend on December 15, 2021. The Company currently anticipates that future cash dividends will be paid on a quarterly basis; however, any decision to pay future cash dividends will be subject to approval by the Board.

Non-GAAP Financial Measures

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

Unaudited Financial Highlights
	Three-Month Period													Nine-Month Period
	Ended September 30,													Ended September 30,
	2021				2020				% Change					2021				2020				% Change
Net revenue	$	199,008			$	62,978				216	%			$	526,298			$	172,343				205	%
Cost of revenue – digital (1)		124,332				7,808			*						318,118				21,602			*
Operating expenses (2)		43,113				34,061				27	%				124,969				107,368				16	%
Corporate expenses (3)		7,253				6,287				15	%				21,756				18,511				18	%
Foreign currency (gain) loss		177				(680	)		*						454				673				(33	)%
Consolidated adjusted EBITDA (4)		23,195				16,371				42	%				55,177				27,773				99	%
Free cash flow (5)	$	22,382			$	10,567				112	%			$	47,831			$	14,388				232	%
Net income (loss)	$	13,884			$	9,016				54	%			$	31,362			$	(24,238	)		*
Net (income) loss attributable to redeemable noncontrolling interest	$	(1,753	)		$	–			*					$	(5,938	)		$	–			*
Net income (loss) attributable to common stockholders	$	12,131			$	9,016				35	%			$	25,424			$	(24,238	)		*
Net income (loss) per share attributable to common stockholders, basic	$	0.14			$	0.11				27	%			$	0.30			$	(0.29	)		*
Net income (loss) per share attributable to common stockholders, diluted	$	0.14			$	0.11				27	%			$	0.29			$	(0.29	)		*
Weighted average common shares outstanding, basic		85,390,333				84,185,728									85,207,992				84,208,924
Weighted average common shares outstanding, diluted		88,315,732				84,863,020									87,694,395				84,208,924

(1)		Consists primarily of the costs of online media acquired from third-party publishers. Media cost is classified as cost of revenue in the period in which the corresponding revenue is recognized.
(2)		Operating expenses includes direct operating and selling, general and administrative expenses. Included in operating expenses are $0.3 million and $0.1 million of non-cash stock-based compensation for the three-month periods ended September 30, 2021 and 2020, respectively, and $1.0 million and $0.4 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2021 and 2020, respectively.
(3)		Corporate expenses include $0.8 million and $0.7 million of non-cash stock-based compensation for the three-month periods ended September 30, 2021 and 2020, respectively, and $2.3 million and $2.0 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2021 and 2020, respectively.
(4)		Consolidated adjusted EBITDA means net income (loss) plus gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation included in operating and corporate expenses, net interest expense, other operating gain (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from the Federal Communications Commission, or FCC, spectrum incentive auction less related expenses, expenses associated with investments, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings. We use the term consolidated adjusted EBITDA because that measure is defined in the agreement governing our current credit facility (“the 2017 Credit Facility”) and does not include gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation, net interest expense, other income (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from FCC spectrum incentive auction less related expenses, expenses associated with investments, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings.
(5)		Free cash flow is defined as consolidated adjusted EBITDA less cash paid for income taxes, net interest expense, capital expenditures and non-recurring cash expenses plus dividend income, and other operating gain (loss). Net interest expense is defined as interest expense, less non-cash interest expense relating to amortization of debt finance costs, and less interest income.

Unaudited Financial Results
	Three-Month Period
	Ended September 30,
	2021				2020				% Change
Net revenue	$	199,008			$	62,978				216	%
Cost of revenue – digital (1)		124,332				7,808			*
Operating expenses (1)		43,113				34,061				27	%
Corporate expenses (1)		7,253				6,287				15	%
Depreciation and amortization		5,901				3,934				50	%
Impairment charge		166				–			*
Foreign currency (gain) loss		177				(680	)		*
Other operating (gain) loss		(2,431	)			(2,683	)			(9	)%
Operating income (loss)		20,497				14,251				44	%
Interest expense, net		(1,702	)			(1,502	)			13	%
Dividend income		207				3			*
Income (loss) before income taxes		19,002				12,752				49	%
Income tax benefit (expense)		(5,118	)			(3,736	)			37	%
Net income (loss)		13,884				9,016				54	%
Net (income) loss attributable to redeemable noncontrolling interest		(1,753	)			–			*
Net income (loss) attributable to common stockholders	$	12,131			$	9,016				35	%

(1)

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

Net revenue in the third quarter of 2021 totaled $199.0 million, up 216% from $63.0 million in the prior-year period. Of the overall increase, approximately $132.4 million was attributable to our digital segment and was primarily due to advertising revenue resulting from our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which became fully-owned during the third quarter of 2021, and advertising revenue resulting from our acquisition of MediaDonuts during the third quarter of 2021. In addition, of the overall increase, approximately $4.9 million was attributable to our radio segment, primarily due to increases in local and national advertising revenue, partially offset by a decrease in political revenue. The overall increase was partially offset by a decrease of approximately $1.3 million that was attributable to our television segment primarily due to decreases in political revenue and revenue from spectrum usage rights, partially offset by increases in local and national advertising revenue.

Cost of revenue in the third quarter of 2021 totaled $124.3 million compared to $7.8 million in the prior-year period. The increase was primarily due to increased costs of revenue following our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which became wholly-owned during the third quarter of 2021, and our acquisition of MediaDonuts during the third quarter of 2021.

Operating expenses in the third quarter of 2021 totaled $43.1 million, up 27% from $34.1 million in the prior-year period. The increase was primarily due to our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which became fully-owned during the third quarter of 2021, and our acquisition of MediaDonuts during the third quarter of 2021, and due to an increase in expenses associated with the increase in advertising revenue, partially offset by a decrease in salary expense associated with furloughs and layoffs that occurred in 2020 because of the COVID-19 pandemic.

Corporate expenses in the third quarter of 2021 totaled $7.3 million, up 15% from $6.3 million in the prior-year period. The increase was primarily due to an increase in salaries and non-cash stock-based compensation expense.

	Nine-Month Period
	Ended September 30,
	2021				2020				% Change
Net revenue	$	526,298			$	172,343				205	%
Cost of revenue – digital (1)		318,118				21,602			*
Operating expenses (1)		124,969				107,368				16	%
Corporate expenses (1)		21,756				18,511				18	%
Depreciation and amortization		16,159				12,319				31	%
Impairment charge		1,604				39,835				(96	)%
Foreign currency (gain) loss		454				673				(33	)%
Other operating (gain) loss		(4,867	)			(5,549	)			(12	)%
Operating income (loss)		48,105				(22,416	)		*
Interest expense, net		(5,052	)			(5,043	)			0	%
Dividend income		211				26				712	%
Income (loss) before income taxes		43,264				(27,433	)		*
Income tax benefit (expense)		(11,902	)			3,195			*
Net income (loss)		31,362				(24,238	)		*
Net (income) loss attributable to redeemable noncontrolling interest		(5,938	)			–			*
Net income (loss) attributable to common stockholders	$	25,424			$	(24,238	)		*

(1)

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

Net revenue for the nine-month period of 2021 totaled $526.3 million, up 205% from $172.3 million in the prior-year period. Of the overall increase, approximately $339.4 million was attributable to our digital segment and was primarily due to advertising revenue resulting from our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which became fully-owned during the third quarter of 2021, and advertising revenue resulting from our acquisition of MediaDonuts during the third quarter of 2021. In addition, of the overall increase, approximately $2.7 million was attributable to our television segment, primarily due to increases in local and national advertising revenue, and revenue from spectrum usage rights, partially offset by a decrease in political revenue. Additionally, of the overall increase, approximately $11.8 million was attributable to our radio segment primarily due to increases in local and national advertising revenue, partially offset by a decrease in political revenue.

Cost of revenue for the nine-month period of 2021 totaled $318.1 million compared to $21.6 million in the prior-year period. The increase was primarily due to increased costs of revenue following our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which became wholly-owned during the third quarter of 2021, and our acquisition of MediaDonuts during the third quarter of 2021.

Operating expenses for the nine-month period of 2021 totaled $125.0 million, up 16% from $107.4 million in the prior-year period. The increase was primarily due to our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which became fully-owned during the third quarter of 2021, and our acquisition of MediaDonuts during the third quarter of 2021, and due to an increase in expenses associated with the increase in advertising revenue, partially offset by decreases in bad debt and salary expense associated with furloughs and layoffs that occurred in 2020 because of the COVID-19 pandemic.

Corporate expenses for the nine-month period of 2021 totaled $21.8 million, up 18% from $18.5 million in the prior-year period. The increase was primarily due to an increase in salaries and audit fees.

Balance Sheet and Related Metrics

Cash and marketable securities as of September 30, 2021 totaled approximately $182.9 million. Total debt was $213.0 million. Net of $75 million of cash and marketable securities, total leverage as defined in the Company’s credit agreement was 1.6 times as of September 30, 2021. Net of total accessible cash and marketable securities, total leverage was 0.3 times.

Unaudited Segment Results
	Three-Month Period												Nine-Month Period
	Ended September 30,												Ended September 30,
	2021				2020				% Change				2021				2020				% Change
Net Revenue
Digital	$	146,121			$	13,655				970	%		$	377,826			$	38,359				885	%
Television		36,450				37,786				(4	)%			106,598				103,940				3	%
Radio		16,437				11,537				42	%			41,874				30,044				39	%
Total	$	199,008			$	62,978				216	%		$	526,298			$	172,343				205	%
Cost of Revenue – digital (1)
Digital	$	124,332			$	7,808			*				$	318,118			$	21,602			*
Operating Expenses (1)
Digital		13,187				5,383				145	%			36,064				18,403				96	%
Television		20,148				18,978				6	%			59,548				58,471				2	%
Radio		9,778				9,700				1	%			29,357				30,494				(4	)%
Total	$	43,113			$	34,061				27	%		$	124,969			$	107,368				16	%
Corporate Expenses (1)	$	7,253			$	6,287				15	%		$	21,756			$	18,511				18	%
Consolidated adjusted EBITDA (1)	$	23,195			$	16,371				42	%		$	55,177			$	27,773				99	%

(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 2021 results on Thursday, November 4, 2021 at 5 p.m. Eastern Time. To access the conference call, please dial (877) 407-9716 (U.S.) or (201) 493-6779 (Int’l) ten minutes prior to the start time and reference Conference ID number 13723009. The call will also be available via live webcast on the investor relations portion of the Company’s website located at www.entravision.com.

About Entravision Communications Corporation

Entravision is a diversified global media, marketing and technology company serving clients throughout the United States and in fast growing population centers in more than 30 countries across Latin America, Europe, Asia and Africa. Our dynamic portfolio of services includes digital, television and radio offerings. Digital, our largest revenue segment, is comprised of five core businesses: Entravision Digital, Smadex, Cisneros Interactive, MediaDonuts, and 365 Digital. Entravision Digital provides branding and performance digital solutions to clients and small- and mid-size businesses throughout the world, including the U.S., Latin America and Europe. Smadex provides cutting-edge mobile programmatic solutions and demand-side platforms which enable advertisers to effectively execute performance campaigns using machine-learned bidding algorithms. Cisneros Interactive provides unique digital marketing solutions representing major global publishers and ad-tech platforms in Latin America, while also managing the leading digital audio network and solutions player Audio.Ad. MediaDonuts provides digital marketing performance and branding services in the Southeast Asia region and maintains unique commercial partnerships with some of the world’s leading digital publishers and social media platforms. 365 Digital is a digital advertising solutions provider that offers exclusive sales representations with major global platforms in South Africa. Beyond digital, Entravision has 53 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 all of our innovative media, marketing and technology offerings at entravision.com or connect with us on LinkedIn and Facebook.

Forward-Looking Statements

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

(Financial Table Follows)

Entravision Communications Corporation Consolidated Balance Sheets (In thousands; unaudited)
		September 30,				December 31,
		2021				2020
ASSETS
Current assets
Cash and cash equivalents		$	182,891			$	119,162
Marketable securities			–				27,988
Restricted cash			749				749
Trade receivables, net of allowance for doubtful accounts			168,165				142,004
Assets held for sale			2,907				2,141
Prepaid expenses and other current assets			24,803				18,021
Total current assets			379,515				310,065
Property and equipment, net			64,600				72,004
Intangible assets subject to amortization, net			65,880				49,412
Intangible assets not subject to amortization			209,153				216,653
Goodwill			68,728				58,043
Operating leases right of use asset			32,053				33,525
Other assets			8,474				7,643
Total assets		$	828,403			$	747,345
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Current maturities of long-term debt		$	4,694			$	3,000
Accounts payable and accrued expenses			179,912				126,849
Operating lease liabilities			7,353				7,290
Total current liabilities			191,959				137,139
Long-term debt, less current maturities, net of unamortized debt issuance costs			208,014				210,454
Long-term operating lease liabilities			29,851				31,775
Other long-term liabilities			80,893				3,732
Deferred income taxes			64,416				54,980
Total liabilities			575,133				438,080
Redeemable noncontrolling interest			–				33,285
Stockholders’ equity
Class A common stock			6				6
Class B common stock			2				2
Class U common stock			1				1
Additional paid-in capital			780,426				828,813
Accumulated deficit			(526,362	)			(551,786	)
Accumulated other comprehensive income (loss)			(803	)			(1,056	)
Total stockholders’ equity			253,270				275,980
Total liabilities and stockholders’ equity		$	828,403			$	747,345

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,
		2021				2020				2021				2020
Net revenue		$	199,008			$	62,978			$	526,298			$	172,343
Expenses:
Cost of revenue – digital			124,332				7,808				318,118				21,602
Direct operating expenses			28,583				24,178				83,480				72,997
Selling, general and administrative expenses			14,530				9,883				41,489				34,371
Corporate expenses			7,253				6,287				21,756				18,511
Depreciation and amortization			5,901				3,934				16,159				12,319
Impairment charge			166				–				1,604				39,835
Foreign currency (gain) loss			177				(680	)			454				673
Other operating (gain) loss			(2,431	)			(2,683	)			(4,867	)			(5,549	)
			178,511				48,727				478,193				194,759
Operating income (loss)			20,497				14,251				48,105				(22,416	)
Interest expense			(1,714	)			(1,969	)			(5,287	)			(6,673	)
Interest income			12				467				235				1,630
Dividend income			207				3				211				26
Income (loss) before income taxes			19,002				12,752				43,264				(27,433	)
Income tax benefit (expense)			(5,118	)			(3,736	)			(11,902	)			3,195
Net income (loss)			13,884				9,016				31,362				(24,238	)
Net (income) loss attributable to redeemable noncontrolling interest			(1,753	)			–				(5,938	)			–
Net income (loss) attributable to common stockholders		$	12,131			$	9,016			$	25,424			$	(24,238	)
Basic and diluted earnings per share:
Net income (loss) per share attributable to common stockholders, basic		$	0.14			$	0.11			$	0.30			$	(0.29	)
Net income (loss) per share attributable to common stockholders, diluted		$	0.14			$	0.11			$	0.29			$	(0.29	)
Cash dividends declared per common share, basic and diluted		$	0.03			$	0.03			$	0.08			$	0.10
Weighted average common shares outstanding, basic			85,390,333				84,185,728				85,207,992				84,208,924
Weighted average common shares outstanding, diluted			88,315,732				84,863,020				87,694,395				84,208,924

Entravision Communications Corporation Consolidated Statements of Cash Flows (In thousands; unaudited)
		Three-Month Period								Nine-Month Period
		Ended September 30,								Ended September 30,
		2021				2020				2021				2020
Cash flows from operating activities:
Net income (loss)		$	13,884			$	9,016			$	31,362			$	(24,238	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization			5,901				3,934				16,159				12,319
Impairment charge			166				—				1,604				39,835
Deferred income taxes			4,649				(1,346	)			8,348				(8,744	)
Non-cash interest			153				159				451				491
Amortization of syndication contracts			119				125				357				383
Payments on syndication contracts			(115	)			(72	)			(354	)			(325	)
Non-cash stock-based compensation			1,094				816				3,300				2,408
(Gain) loss on disposal of property and equipment			(2,622	)			(140	)			(2,622	)			(767	)
Changes in assets and liabilities:
(Increase) decrease in accounts receivable			(16,361	)			(5,228	)			(15,894	)			14,285
(Increase) decrease in prepaid expenses and other assets			(642	)			1,623				2,267				6,713
Increase (decrease) in accounts payable, accrued expenses and other liabilities			3,169				(2,633	)			8,802				(16,643	)
Net cash provided by operating activities			9,395				6,254				53,780				25,717
Cash flows from investing activities:
Proceeds from sale of property and equipment and intangibles			9,431				1,100				9,431				5,089
Purchases of property and equipment			(1,433	)			(2,065	)			(4,269	)			(7,741	)
Purchases of intangible assets			—				—				—				(158	)
Purchase of a businesses, net of cash acquired			(12,847	)			—				(12,847	)			—
Proceeds from marketable securities			10,000				11,620				27,800				38,480
Purchases of investments			(800	)			—				(800	)			—
Net cash provided by investing activities			4,351				10,655				19,315				35,670
Cash flows from financing activities:
Proceeds from stock option exercises			242				—				414				—
Tax payments related to shares withheld for share-based compensation plans			(70	)			—				(528	)			(15	)
Payments on long-term debt			(750	)			(750	)			(2,250	)			(2,250	)
Dividends paid			(2,136	)			(2,106	)			(6,395	)			(8,428	)
Repurchase of Class A common stock			—				—				—				(525	)
Payments of capitalized debt costs			—				—				(604	)			—
Net cash used in financing activities			(2,714	)			(2,856	)			(9,363	)			(11,218	)
Effect of exchange rates on cash, cash equivalents and restricted cash			(3	)			(39	)			(3	)			(7	)
Net increase (decrease) in cash, cash equivalents and restricted cash			11,029				14,014				63,729				50,162
Cash, cash equivalents and restricted cash:
Beginning			172,611				70,005				119,911				33,857
Ending		$	183,640			$	84,019			$	183,640			$	84,019

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,
		2021				2020				2021				2020
Consolidated adjusted EBITDA (1)		$	23,195			$	16,371			$	55,177			$	27,773
EBITDA attributable to redeemable noncontrolling interest			2,036				–				9,127				–
Interest expense			(1,714	)			(1,969	)			(5,287	)			(6,673	)
Interest income			12				467				235				1,630
Dividend income			207				3				211				26
Income tax expense			(5,118	)			(3,736	)			(11,902	)			3,195
Amortization of syndication contracts			(119	)			(125	)			(357	)			(383	)
Payments on syndication contracts			115				72				354				325
Non-cash stock-based compensation included in direct operating expenses			(321	)			(148	)			(971	)			(383	)
Non-cash stock-based compensation included in corporate expenses			(773	)			(668	)			(2,329	)			(2,025	)
Depreciation and amortization			(5,901	)			(3,934	)			(16,159	)			(12,319	)
Impairment charge			(166	)			–				(1,604	)			(39,835	)
Non-recurring cash severance charge			–				–				–				(1,118	)
Other operating gain (loss)			2,431				2,683				4,867				5,549
Net (income) loss attributable to redeemable noncontrolling interest			(1,753	)			–				(5,938	)			–
Net income (loss) attributable to common stockholders			12,131				9,016				25,424				(24,238	)
Depreciation and amortization			5,901				3,934				16,159				12,319
Impairment charge			166				–				1,604				39,835
Deferred income taxes			4,649				(1,346	)			8,348				(8,744	)
Non-cash interest			153				159				451				491
Amortization of syndication contracts			119				125				357				383
Payments on syndication contracts			(115	)			(72	)			(354	)			(325	)
Non-cash stock-based compensation			1,094				816				3,300				2,408
(Gain) loss on disposal of property and equipment			(2,622	)			(140	)			(2,622	)			(767	)
Net income (loss) attributable to redeemable noncontrolling interest			1,753				–				5,938				–
Changes in assets and liabilities:
(Increase) decrease in accounts receivable			(16,361	)			(5,228	)			(15,894	)			14,285
(Increase) decrease in prepaid expenses and other assets			(642	)			1,623				2,267				6,713
Increase (decrease) in accounts payable, accrued expenses and other liabilities			3,169				(2,633	)			8,802				(16,643	)
Cash flows from operating activities			9,395				6,254				53,780				25,717

(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,
		2021				2020				2021				2020
Consolidated adjusted EBITDA (1)		$	23,195			$	16,371			$	55,177			$	27,773
Net interest expense (1)			(1,549	)			(1,343	)			(4,601	)			(4,552	)
Dividend income			207				3				211				26
Cash paid for income taxes			(469	)			(5,082	)			(3,554	)			(5,549	)
Capital expenditures (2)			(1,433	)			(2,065	)			(4,269	)			(7,741	)
Non-recurring cash severance charge			–				–				–				(1,118	)
Other operating gain (loss)			2,431				2,683				4,867				5,549
Free cash flow (1)			22,382				10,567				47,831				14,388
Capital expenditures (2)			1,433				2,065				4,269				7,741
EBITDA attributable to redeemable noncontrolling interest			2,036				–				9,127				–
(Gain) loss on disposal of property and equipment			(2,622	)			(140	)			(2,622	)			(767	)
Changes in assets and liabilities:
(Increase) decrease in accounts receivable			(16,361	)			(5,228	)			(15,894	)			14,285
(Increase) decrease in prepaid expenses and other assets			(642	)			1,623				2,267				6,713
Increase (decrease) in accounts payable, accrued expenses and other liabilities			3,169				(2,633	)			8,802				(16,643	)
Cash Flows From Operating Activities		$	9,395			$	6,254			$	53,780			$	25,717

(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/20211104006282/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