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Category: Financials & Governance

  • Entravision Communications Corporation Reports Fourth Quarter And Full Year 2018 Results

    Entravision Communications Corporation Reports Fourth Quarter And Full Year 2018 Results

    SANTA MONICA, Calif., May 7, 2019 /PRNewswire/ — Entravision Communications Corporation (NYSE: EVC) today reported financial results for the three- and twelve-month periods ended December 31, 2018.

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

    Three Months Ended

    Twelve Months Ended

    December 31,

    December 31,

    2018

    2017

    % Change

    2018

    2017

    % Change

    Net revenue:

    Revenue from advertising and
    retransmission consent

    $

    80,906

    $

    73,460

    10

    %

    $

    294,839

    $

    272,091

    8

    %

    Revenue from spectrum usage rights

    1,167

    –

    *

    2,976

    263,943

    (99)

    %

    $

    82,073

    $

    73,460

    12

    %

    $

    297,815

    $

    536,034

    (44)

    %

    Cost of revenue – television (spectrum
    usage rights) (1)

    –

    209

    *

    –

    12,340

    *

    Cost of revenue – digital media (1)

    9,847

    12,090

    (19)

    %

    45,096

    32,998

    37

    %

    Operating expenses (2)

    44,568

    45,118

    (1)

    %

    176,777

    168,399

    5

    %

    Corporate expenses (3)

    7,711

    8,242

    (6)

    %

    26,865

    27,937

    (4)

    %

    Foreign currency (gain) loss

    1,085

    57

    1804

    %

    1,616

    350

    362

    %

    Consolidated adjusted EBITDA (4)

    20,936

    10,891

    92

    %

    54,038

    50,608

    7

    %

    Free cash flow (5)

    $

    12,237

    $

    5,855

    109

    %

    $

    25,001

    $

    287,088

    (91)

    %

    Net income

    $

    6,913

    $

    12,740

    (46)

    %

    $

    12,161

    $

    175,698

    (93)

    %

    Net income per share, basic

    $

    0.08

    $

    0.14

    (43)

    %

    $

    0.14

    $

    1.95

    (93)

    %

    Net income per share, diluted

    $

    0.08

    $

    0.14

    (43)

    %

    $

    0.13

    $

    1.91

    (93)

    %

    Weighted average common shares
    outstanding, basic

    88,357,076

    89,980,200

    89,115,997

    90,272,257

    Weighted average common shares
    outstanding, diluted

    89,598,683

    91,613,199

    90,328,583

    91,891,957

    (1)      Cost of revenue – digital media consists primarily of the costs of online media acquired from third-party publishers. Media cost is classified as cost of revenue in the period in which the corresponding revenue is
              recognized. Cost of revenue – television (spectrum usage rights) consists primarily of the carrying value of spectrum usage rights surrendered in the Federal Communications Commission (“FCC”) auction for
              broadcast spectrum.

    (2)      For purposes of presentation in this table, the operating expenses line item includes direct operating and selling, general and administrative expenses. Included in operating expenses are $0.3 million and $0.4
              million of non-cash stock-based compensation for the three-month periods ended December 31, 2018 and 2017, respectively, and $0.7 million and $1.2 million of non-cash stock-based compensation for the twelve
              month periods ended December 31, 2018 and 2017, respectively. Also for purposes of presentation in this table, the operating expenses line item does not include corporate expenses, foreign currency (gain) loss,
              depreciation and amortization, impairment charge, gain (loss) on sale of assets, gain (loss) on debt extinguishment, other income (loss) and change in fair value of contingent consideration.

    (3)      Corporate expenses include $1.8 million and $2.5 million of non-cash stock-based compensation for the three-month periods ended December 31, 2018 and 2017, respectively, and $5.1 million and $4.9 million of
              non-cash stock-based compensation for the twelve-month periods ended December 31, 2018 and 2017, respectively.

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

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

    Commenting on the Company’s earnings results, Walter F. Ulloa, Chairman and Chief Executive Officer, said, “During the fourth quarter, we achieved growth in advertising revenue, driven by an increase in our television segment. We also improved our free cash flow over the fourth quarter of 2017. We continue to maintain a solid balance sheet and return capital to our shareholders through our share repurchase program and dividend. Looking ahead, we remain well positioned to build on our success in further attracting Latino and other audiences worldwide, as we execute our multiplatform strategy to the benefit of our shareholders.”

    Quarterly Cash Dividend

    The Company announced today that its Board of Directors has 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, in an aggregate amount of approximately $4.3 million. The quarterly dividend will be payable on June 28, 2019 to shareholders of record as of the close of business on June 14, 2019, and the common stock will trade ex-dividend on June 13, 2019. As previously announced, 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.

    Form 10-K Filed Today

    The Company today filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2018 (its “Form 10-K”) with the Securities and Exchange Commission (the “SEC”).

    As previously disclosed by the Company, on April 3, 2019 the Company received a notice from the New York Stock Exchange (the “NYSE”) that the Company was not in compliance with the NYSE’s continued listing requirements under the timely filing criteria established in Section 802.01E of the NYSE Listed Company Manual (the “NYSE Rules”), because the Company did not timely file its Form 10-K with the SEC on or prior to the due date thereof or by the extended filing due date provided by Rule 12b-25.  Such notices are routinely issued by the NYSE when there are late filings with the SEC.  The NYSE informed the Company that, under the NYSE Rules, the Company had six months from April 2, 2019 to file its Form 10-K with the SEC. With today’s filing of the Form 10-K with the SEC, the Company believes it has regained compliance with the NYSE Rules with respect to the Company’s filing of its Form 10-K.

    Expects to File Form 12b-25 for Extension of Filing Deadline for Form 10-Q for First Quarter

    The Company announced today that it expects to file a notification of late filing on Form 12b-25 with the SEC, which provides an automatic 5-day extension of the filing deadline for its Quarterly Report on Form 10-Q for the first quarter ended March 31, 2019 (the “2019 First Quarter Form 10-Q”), to May 15, 2019. Due to the Company’s delay in filing the Form 10-K, the Company experienced delays in the preparation of its financial statements for the first quarter ended March 31, 2019 and the filing of the 2019 First Quarter Form 10-Q. The Company expects to file the 2019 First Quarter Form 10-Q and announce the timing of a conference call to discuss its financial results for the first quarter ended March 31, 2019 as soon as practicable.

     Financial Results

    Three-Month Period Ended December 31, 2018 Compared to Three-Month Period Ended December 31, 2017

    (Unaudited)

    Three Months Ended

    December 31,

    2018

    2017

    % Change

    Net, revenue from advertising and retransmission consent

    $

    80,906

    $

    73,460

    10

    %

    Revenue from spectrum usage rights

    1,167

    –

    *

    Total net revenue

    82,073

    73,460

    12

    %

    Cost of revenue – television (spectrum usage rights) (1)

    –

    209

    *

    Cost of revenue – digital media (1)

    9,847

    12,090

    (19)

    %

    Operating expenses (1)

    44,568

    45,118

    (1)

    %

    Corporate expenses (1)

    7,711

    8,242

    (6)

    %

    Depreciation and amortization

    4,221

    3,951

    7

    %

    Change in fair value of contingent consideration

    (2,275)

    –

    *

    Foreign currency (gain) loss

    1,085

    57

    1804

    %

    Other operating (gain) loss

    (565)

    (262)

    116

    %

    Operating income

    17,481

    4,055

    331

    %

    Interest expense, net

    (3,261)

    (5,326)

    (39)

    %

    Dividend income

    473

    –

    *

    Gain (loss) on debt extinguishment

    (550)

    (3,306)

    (83)

    %

    Impairment loss on investment

    (1,320)

    –

    *

    Income before income taxes

    12,823

    (4,577)

    *

    Income tax (expense) benefit

    (4,713)

    17,452

    *

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

    8,110

    12,875

    (37)

    %

    Equity in net income (loss) of nonconsolidated affiliates

    (1,197)

    (135)

    787

    %

    Net income

    $

    6,913

    $

    12,740

    (46)

    %

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

    Net revenue from advertising and retransmission consent increased to $80.9 million for the three-month period ended December 31, 2018 from $73.5 million for the three-month period ended December 31, 2017, an increase of $7.4 million. Of the overall increase, approximately $8.3 million was attributable to our television segment and was primarily due to an increase in political advertising revenue, which was not material in 2017, and an increase in retransmission consent revenue. This overall increase was partially offset by a decrease of approximately $0.6 million and $0.3 million that was attributable to our digital and radio segments, respectively.

    Net revenue from spectrum usage rights was $1.2 million for the three-month period ended December 31, 2018. There was no revenue from spectrum usage rights for the three-month period ended December 31, 2017.

    Cost of revenue in our digital media segment decreased to $9.8 million for the three-month period ended December 31, 2018 from $12.1 million for the three-month period ended December 31, 2017, a decrease of $2.3 million. The decrease was primarily due to the decrease in revenue.

    Operating expenses decreased to $44.6 million for the three-month period ended December 31, 2018 from $45.1 million for the three-month period ended December 31, 2017, a decrease of $0.5 million. Of the overall decrease, approximately $2.0 million was attributable to our radio segment and was primarily due to a decrease in expenses associated with the decrease in revenue and a decrease in salary expense. The overall decrease was partially offset by an increase of approximately $1.0 million that was attributable to our digital segment and was primarily due to the acquisition of Smadex in the second quarter of 2018, which did not contribute to direct operating expenses in 2017. Additionally, the overall decrease was partially offset by an increase of approximately $0.5 million that was attributable to our television segment and was primarily due to an increase in expenses associated with the increase in revenue.

    Corporate expenses decreased to $7.7 million for the three-month period December 31, 2018 from $8.2 million for the three-month period ended December 31, 2017, a decrease of $0.5 million, primarily due to a decrease in non-cash stock-based compensation expense.

    Our historical revenues have primarily been denominated in U.S. dollars, and the majority of our current revenues continue to be, and are expected to remain, denominated in U.S. dollars. However, our operating expenses are generally denominated in the currencies of the countries in which our operations are located, and we have operations in countries other than the U.S., primarily related to the Headway business. As a result, we have operating expense, attributable to foreign currency loss, that is primarily related to the operations related to the Headway business. Foreign currency loss increased to $1.1 million for the three-month period December 31, 2018 from $0.1 million for the three-month period December 31, 2017, an increase of $1.0 million, which was primarily due to currency fluctuations that affected our digital segment operations located outside the U.S., primarily related to the Headway business.

    We recognized an impairment charge of $1.3 million for the three-month period December 31, 2018, related to a decrease in value of a cost method investment.

    Twelve-month Period Ended December 31, 2018 Compared to Twelve-month Period Ended December 31, 2017

    (Unaudited)

    Twelve Months Ended

    December 31,

    2018

    2017

    % Change

    Net revenue:

    Revenue from advertising and retransmission consent

    $

    294,839

    $

    272,091

    8

    %

    Revenue from spectrum usage rights

    2,976

    263,943

    (99)

    %

    Total net revenue

    297,815

    536,034

    (44)

    %

    Cost of revenue – television (spectrum usage rights) (1)

    –

    12,340

    *

    Cost of revenue – digital media (1)

    45,096

    32,998

    37

    %

    Operating expenses (1)

    176,777

    168,399

    5

    %

    Corporate expenses (1)

    26,865

    27,937

    (4)

    %

    Depreciation and amortization

    16,273

    16,411

    (1)

    %

    Change in fair value of contingent consideration

    (1,202)

    –

    *

    Foreign currency (gain) loss

    1,616

    350

    362

    %

    Other operating (gain) loss

    (1,187)

    (262)

    353

    %

    Operating income

    33,577

    277,861

    (88)

    %

    Interest expense, net

    (11,770)

    (15,935)

    (26)

    %

    Dividend income

    1,475

    –

    *

    Gain (loss) on debt extinguishment

    (550)

    (3,306)

    (83)

    %

    Impairment loss on investment

    (1,320)

    –

    *

    Income before income taxes

    21,412

    258,620

    (92)

    %

    Income tax (expense) benefit

    (7,877)

    (82,612)

    (90)

    %

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

    13,535

    176,008

    (92)

    %

    Equity in net income (loss) of nonconsolidated affiliates

    (1,374)

    (310)

    343

    %

    Net income

    $

    12,161

    $

    175,698

    (93)

    %

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

    Net revenue from advertising and retransmission consent increased to $294.8 million for the twelve-month period ended December 31, 2018 from $272.1 million for the twelve-month period ended December 31, 2017, an increase of approximately $22.7 million. Of the overall increase, $23.9 million was attributable to our digital media segment and was primarily due to the growth in the Headway business, which we acquired in the second quarter of 2017. Additionally, $1.9 million of the overall increase was attributable to our television segment and was primarily due to an increase in political advertising revenue, which was not material in 2017, and an increase in retransmission consent revenue, partially offset by decreases in national and local advertising revenue, as part of a trend for advertising to move increasingly from traditional media, such as television and radio, to new media, such as digital media. The overall increase was partially offset by a decrease in our radio segment of $3.0 million, primarily due to decreases in local and national advertising revenue, partially offset by an increase in political advertising revenue, which was not material in 2017, and an increase in revenue from the 2018 FIFA World Cup.

    Net revenue from spectrum usage rights decreased to $3.0 million for the twelve-month period ended December 31, 2018 from $263.9 million for the twelve-month period ended December 31, 2017. The decrease was primarily due to revenue from the FCC auction for broadcast spectrum in the prior year, which revenue was not significant in 2018.

    We did not incur cost of revenue related to revenue from spectrum usage rights in 2018. Cost of revenue related to revenue from spectrum usage rights was $12.3 million for the twelve-month period ended December 31, 2017, related to the FCC auction for broadcast spectrum.

    Cost of revenue in our digital media segment increased to $45.1 million for the twelve-month period ended December 31, 2018 from $33.0 million for the twelve-month period ended December 31, 2017, an increase of $12.1 million, primarily due to the growth in the Headway business, which we acquired in the second quarter of 2017.

    Operating expenses increased to $176.8 million for the twelve-month period ended December 31, 2018 from $168.4 million for the twelve-month period ended December 31, 2017, an increase of $8.4 million. Of the overall increase, approximately $9.8 million was attributable to our digital media segment and was primarily due to expenses associated with the increase in revenue, and due to the acquisitions of Headway during the second quarter of 2017, which did not contribute to direct operating expenses for the full year in 2017, and Smadex in the second quarter of 2018. Additionally, $2.6 million of the overall increase was attributable to our television segment and was primarily due to the acquisition of station KMIR-TV in the fourth quarter of 2017, which did not contribute to direct operating expenses in that year, and expenses associated with the increase in advertising revenue. The overall increase was partially offset by a decrease in expenses associated with the decrease in radio advertising revenue and a decrease in salary expenses in our television and radio segments.

    Corporate expenses decreased to $26.9 million for the twelve-month period ended December 31, 2018 from $27.9 million for the twelve-month period ended December 31, 2017, a decrease of $1.0 million. The decrease was primarily due to expenses associated with the FCC auction for broadcast spectrum recorded in 2017, which expenses did not recur in 2018, and due diligence costs related to the Headway acquisition during the second quarter of 2017, partially offset by increase in salary expense, non-cash stock-based compensation expense, and due diligence costs related to the Smadex acquisition in 2018.

    Our historical revenues have primarily been denominated in U.S. dollars, and the majority of our current revenues continue to be, and are expected to remain, denominated in U.S. dollars. However, our operating expenses are generally denominated in the currencies of the countries in which our operations are located, and we have operations in countries other than the U.S., primarily related to the Headway business. As a result, we have operating expense, attributable to foreign currency loss, that is primarily related to the operations related to the Headway business. Foreign currency loss increased to $1.6 million for the year ended December 31, 2018 from $0.4 million for the year ended December 31, 2017, an increase of $1.2 million, which was primarily due to currency fluctuations that affected our digital segment operations located outside the U.S., primarily related to the Headway business.

    We recognized an impairment charge of $1.3 million for the three-month period December 31, 2018, related to a decrease in value of a cost method investment.

    Segment Results

    The following represents selected unaudited segment information:

    Three Months Ended

    Twelve Months Ended

    December 31,

    December 31,

    2018

    2017

    % Change

    2018

    2017

    % Change

    Net Revenue

    Revenue from advertising and retransmission
    consent

    Television

    $

    44,361

    $

    36,038

    23

    %

    $

    149,935

    $

    148,059

    1

    %

    Radio

    16,796

    17,118

    (2)

    %

    63,922

    66,934

    (4)

    %

    Digital

    19,749

    20,304

    (3)

    %

    80,982

    57,098

    42

    %

    Total

    $

    80,906

    $

    73,460

    10

    %

    $

    294,839

    $

    272,091

    8

    %

    Revenue from spectrum usage rights (television)

    $

    1,167

    $

    –

    *

    $

    2,976

    $

    263,943

    (99)

    %

    Total Net Revenue

    $

    82,073

    $

    73,460

    12

    %

    $

    297,815

    $

    536,034

    (44)

    %

    Cost of Revenue  (1)

    Television

    –

    209

    *

    –

    12,340

    *

    Digital

    9,847

    12,090

    (19)

    %

    45,096

    32,998

    37

    %

    Total

    $

    9,847

    $

    12,299

    (20)

    %

    $

    45,096

    $

    45,338

    (1)

    %

    Operating Expenses (1)

    Television

    21,725

    21,214

    2

    %

    84,298

    81,730

    3

    %

    Radio

    13,975

    16,021

    (13)

    %

    59,368

    63,315

    (6)

    %

    Digital

    8,868

    7,883

    12

    %

    33,111

    23,354

    42

    %

    Total

    $

    44,568

    $

    45,118

    (1)

    %

    $

    176,777

    $

    168,399

    5

    %

    Corporate Expenses (1)

    $

    7,711

    $

    8,242

    (6)

    %

    $

    26,865

    $

    27,937

    (4)

    %

    Foreign currency (gain) loss

    $

    1,085

    $

    57

    1804

    %

    $

    1,616

    $

    350

    362

    %

    Consolidated adjusted EBITDA (1)

    $

    20,936

    $

    10,891

    92

    %

    $

    54,038

    $

    50,608

    7

    %

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

    Entravision Communications Corporation will hold a conference call to discuss its 2018 fourth quarter results on May 7, 2019 at 5:00 p.m. Eastern Time. To access the conference call, please dial 412-317-5440 ten minutes prior to the start time. The call will be webcast live and archived for replay on the investor relations portion of the Company’s web site located at www.entravision.com.

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

    This press release contains certain forward-looking statements. These forward-looking statements, which are included in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, may involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this press release. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that actual results will not differ materially from these expectations, including the length of time that may be required for the Company to file the Form 10-Q and whether the Company files the Form 10-Q on or prior to the due date thereof or by the extended filing due date provided by Rule 12b-25, 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 Balance Sheets

    (In thousands; unaudited)

    December 31,

    December 31,

    2018

    2017

    ASSETS

    Current assets

    Cash and cash equivalents

    $

    46,733

    $

    39,560

    Marketable securities

    132,424

    –

    Restricted Cash

    732

    222,294

    Trade receivables, net of allowance for doubtful accounts

    79,308

    84,348

    Assets held for sale

    1,179

    –

    Prepaid expenses and other current assets

    10,672

    6,260

    Total current assets

    271,048

    352,462

    Property and equipment, net

    64,939

    60,337

    Intangible assets subject to amortization, net

    22,598

    26,758

    Intangible assets not subject to amortization

    254,598

    251,163

    Goodwill

    74,292

    70,729

    Other assets

    2,934

    4,690

    Total assets

    $

    690,409

    $

    766,139

    LIABILITIES AND STOCKHOLDERS’ EQUITY

    Current liabilities

    Current maturities of long-term debt

    $

    3,000

    $

    3,000

    Accounts payable and accrued expenses

    51,034

    61,847

    Total current liabilities

    54,034

    64,847

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

    240,541

    292,489

    Other long-term liabilities

    16,418

    19,889

    Deferred income taxes

    46,684

    40,639

    Total liabilities

    357,677

    417,864

    Stockholders’ equity

    Class A common stock

    6

    7

    Class B common stock

    2

    2

    Class U common stock

    1

    1

    Additional paid-in capital

    862,299

    888,650

    Accumulated deficit

    (528,164)

    (540,325)

    Accumulated other comprehensive income (loss)

    (1,412)

    (60)

    Total stockholders’ equity

    332,732

    348,275

    Total liabilities and stockholders’ equity

    $

    690,409

    $

    766,139

    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,

    2018

    2017

    2018

    2017

    Net revenue

    Revenue from advertising and retransmission consent

    $

    80,906

    $

    73,460

    $

    294,839

    $

    272,091

    Revenue from spectrum usage rights

    1,167

    –

    2,976

    263,943

    82,073

    73,460

    297,815

    536,034

    Expenses:

    Cost of revenue – television (spectrum usage rights)

    –

    209

    –

    12,340

    Cost of revenue – digital media

    9,847

    12,090

    45,096

    32,998

    Direct operating expenses

    31,398

    32,045

    125,242

    119,283

    Selling, general and administrative expenses

    13,170

    13,073

    51,535

    49,116

    Corporate expenses

    7,711

    8,242

    26,865

    27,937

    Depreciation and amortization

    4,221

    3,951

    16,273

    16,411

    Change in fair value of contingent consideration

    (2,275)

    –

    (1,202)

    –

    Foreign currency (gain) loss

    1,085

    57

    1,616

    350

    Other operating (gain) loss

    (565)

    (262)

    (1,187)

    (262)

    64,592

    69,405

    264,238

    258,173

    Operating income

    17,481

    4,055

    33,577

    277,861

    Interest expense

    (4,349)

    (5,625)

    (15,743)

    (16,709)

    Interest income

    1,088

    299

    3,973

    774

    Dividend income

    473

    –

    1,475

    –

    Gain (loss) on debt extinguishment

    (550)

    (3,306)

    (550)

    (3,306)

    Impairment loss on investment

    (1,320)

    –

    (1,320)

    –

    Income before income taxes

    12,823

    (4,577)

    21,412

    258,620

    Income tax (expense) benefit

    (4,713)

    17,452

    (7,877)

    (82,612)

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

    8,110

    12,875

    13,535

    176,008

    Equity in net income (loss) of nonconsolidated affiliate

    (1,197)

    (135)

    (1,374)

    (310)

    Net income

    $

    6,913

    $

    12,740

    $

    12,161

    $

    175,698

    Basic and diluted earnings per share:

    Net income per share, basic

    $

    0.08

    $

    0.14

    $

    0.14

    $

    1.95

    Net income per share, diluted

    $

    0.08

    $

    0.14

    $

    0.13

    $

    1.91

    Cash dividends declared per common share, basic

    $

    0.05

    $

    0.05

    $

    0.20

    $

    0.16

    Cash dividends declared per common share, diluted

    $

    0.05

    $

    0.05

    $

    0.20

    $

    0.16

    Weighted average common shares outstanding, basic

    88,357,076

    89,980,200

    89,115,997

    90,272,257

    Weighted average common shares outstanding, diluted

    89,598,683

    91,613,199

    90,328,583

    91,891,957

    Entravision Communications Corporation

    Consolidated Statements of Cash Flows

    (In thousands; unaudited)

    Three-Month Period

    Twelve-Month Period

    Ended December 31,

    Ended December 31,

    2018

    2017

    2018

    2017

    Cash flows from operating activities:

    Net income

    $

    6,913

    $

    12,740

    $

    12,161

    $

    175,698

    Adjustments to reconcile net income to net cash provided by operating
    activities:

    Depreciation and amortization

    4,221

    3,951

    16,273

    16,411

    Cost of revenue  – television (spectrum usage rights)

    –

    209

    –

    12,340

    Impairment loss on investment

    1,320

    –

    1,320

    –

    Deferred income taxes

    2,670

    (17,627)

    4,612

    81,766

    Non-cash interest

    296

    2,642

    1,124

    3,237

    Amortization of syndication contracts

    125

    141

    651

    452

    Payments on syndication contracts

    (127)

    (145)

    (643)

    (445)

    Equity in net (income) loss of nonconsolidated affiliate

    1,197

    135

    1,374

    310

    Non-cash stock-based compensation

    2,076

    2,942

    5,787

    6,091

    (Gain) loss on sale of property

    –

    28

    –

    28

    (Gain) loss on debt extinguishment

    550

    3,306

    550

    3,306

    Changes in assets and liabilities:

    (Increase) decrease in trade receivables, net

    (2,683)

    (12,376)

    5,895

    414

    (Increase) decrease in prepaid expenses and other current assets

    1,629

    917

    (5,581)

    (913)

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

    (6,888)

    11,203

    (9,727)

    2,825

    Net cash provided by operating activities

    11,299

    8,066

    33,796

    301,520

    Cash flows from investing activities:

    Proceeds from sale of property and equipment and intangibles

    –

    50

    33

    50

    Purchases of property and equipment

    (4,729)

    (2,439)

    (17,006)

    (12,078)

    Purchases of intangibles

    –

    –

    (3,153)

    (32,588)

    Purchase of a businesses, net of cash acquired

    –

    (21,660)

    (3,522)

    (29,149)

    Purchases of marketable securities

    –

    –

    (159,403)

    –

    Proceeds from marketable securities

    –

    –

    25,000

    –

    Purchases of investments

    (525)

    (250)

    (1,495)

    (2,450)

    Deposits on acquisition

    –

    1,050

    –

    (190)

    Net cash used in investing activities

    (5,254)

    (23,249)

    (159,546)

    (76,405)

    Cash flows from financing activities:

    Proceeds from stock option exercises

    172

    697

    249

    708

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

    (29)

    (798)

    (2,268)

    (798)

    Payments on long-term debt

    (50,750)

    (290,750)

    (53,000)

    (293,563)

    Dividends paid

    (4,379)

    (4,491)

    (17,782)

    (14,670)

    Repurchase of Class A common stock

    (6,152)

    (3,552)

    (13,812)

    (5,330)

    Payment of contingent consideration

    –

    (3,819)

    (2,015)

    (3,819)

    Termination of swap agreements

    –

    (2,441)

    –

    (2,441)

    Proceeds from borrowings on long-term debt

    –

    298,500

    –

    298,500

    Payments of capitalized debt offering and issuance costs

    –

    (3,382)

    –

    (3,382)

    Net cash used in financing activities

    (61,138)

    (10,036)

    (88,628)

    (24,795)

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

    –

    (3)

    (11)

    14

    Net increase (decrease) in cash and cash equivalents

    (55,093)

    (25,222)

    (214,389)

    200,334

    Cash and cash equivalents:

    Beginning

    102,558

    287,076

    261,854

    61,520

    Ending

    $

    47,465

    $

    261,854

    $

    47,465

    $

    261,854

    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,

    2018

    2017

    2018

    2017

    Consolidated adjusted EBITDA (1)

    $

    20,936

    $

    10,891

    $

    54,038

    $

    50,608

    Net revenue – FCC spectrum incentive auction

    –

    –

    –

    263,943

    Expenses – FCC spectrum incentive auction

    –

    (209)

    –

    (14,443)

    Interest expense

    (4,349)

    (5,625)

    (15,743)

    (16,709)

    Interest income

    1,088

    299

    3,973

    774

    Gain (loss) on debt extinguishment

    (550)

    (3,306)

    (550)

    (3,306)

    Income tax (expense) benefit

    (4,713)

    17,452

    (7,877)

    (82,612)

    Amortization of syndication contracts

    (125)

    (141)

    (651)

    (452)

    Payments on syndication contracts

    127

    145

    643

    445

    Non-cash stock-based compensation included in direct operating

     expenses

    (284)

    (430)

    (732)

    (1,236)

    Non-cash stock-based compensation included in corporate
    expenses

    (1,792)

    (2,512)

    (5,055)

    (4,855)

    Depreciation and amortization

    (4,221)

    (3,951)

    (16,273)

    (16,411)

    Change in fair value of contingent consideration

    2,275

    –

    1,202

    –

    Non-recurring severance charge

    –

    –

    (782)

    –

    Dividend income

    473

    –

    1,475

    –

    Other income (loss)

    565

    262

    1,187

    262

    Impairment loss on investment

    (1,320)

    –

    (1,320)

    –

    Equity in net income (loss) of nonconsolidated affiliates

    (1,197)

    (135)

    (1,374)

    (310)

    Net income

    6,913

    12,740

    12,161

    175,698

    Depreciation and amortization

    4,221

    3,951

    16,273

    16,411

    Cost of revenue  – television (spectrum usage rights)

    –

    209

    –

    12,340

    Impairment loss on investment

    1,320

    –

    1,320

    –

    Deferred income taxes

    2,670

    (17,627)

    4,612

    81,766

    Amortization of debt issuance costs

    296

    2,642

    1,124

    3,237

    Amortization of syndication contracts

    125

    141

    651

    452

    Payments on syndication contracts

    (127)

    (145)

    (643)

    (445)

    Equity in net (income) loss of nonconsolidated affiliate

    1,197

    135

    1,374

    310

    Non-cash stock-based compensation

    2,076

    2,942

    5,787

    6,091

    (Gain) loss on sale of property

    –

    28

    –

    28

    (Gain) loss on debt extinguishment

    550

    3,306

    550

    3,306

    Changes in assets and liabilities:

    (Increase) decrease in accounts receivable

    (2,683)

    (12,376)

    5,895

    414

    (Increase) decrease in prepaid expenses and other assets

    1,629

    917

    (5,581)

    (913)

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

    (6,888)

    11,203

    (9,727)

    2,825

    Net cash provided by (used in ) operating activities

    $

    11,299

    $

    8,066

    $

    33,796

    $

    301,520

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

    Entravision Communications Corporation

    Reconciliation of Free Cash Flow to Cash Flows From Operating Activities

    (In thousands; unaudited)

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

    Three-Month Period

    Twelve-Month Period

    Ended December 31,

    Ended December 31,

    2018

    2017

    2018

    2017

    Consolidated adjusted EBITDA (1)

    $

    20,936

    $

    10,891

    $

    54,038

    $

    50,608

    Net, cash interest expense (1)

    (2,965)

    (2,685)

    (10,646)

    (12,698)

    Dividend income

    473

    –

    1,475

    –

    Cash paid for income taxes

    (2,043)

    (174)

    (3,265)

    (846)

    Capital expenditures (2)

    (4,729)

    (2,439)

    (17,006)

    (12,078)

    FCC reimbursement

    565

    262

    1,187

    262

    Non-recurring cash severance charge

    –

    –

    (782)

    –

    Net revenue – FCC spectrum incentive auction

    –

    –

    –

    263,943

    Expenses – FCC spectrum incentive auction

    –

    –

    –

    (2,103)

    Free cash flow (1)

    12,237

    5,855

    25,001

    287,088

    Capital expenditures (2)

    4,729

    2,439

    17,006

    12,078

    Change in fair value of contingent consideration

    2,275

    –

    1,202

    –

    (Gain) loss on sale of property

    –

    28

    –

    28

    Changes in assets and liabilities:

    (Increase) decrease in accounts receivable

    (2,683)

    (12,376)

    5,895

    414

    (Increase) decrease in prepaid expenses and other assets

    1,629

    917

    (5,581)

    (913)

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

    (6,888)

    11,203

    (9,727)

    2,825

    Cash Flows From Operating Activities

    $

    11,299

    $

    8,066

    $

    33,796

    $

    301,520

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

    (2)          Capital expenditures are not part of the consolidated statement of operations.

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  • Entravision Communications Corporation Receives NYSE Notice Regarding Late Form 10-K Filing

    Entravision Communications Corporation Receives NYSE Notice Regarding Late Form 10-K Filing

    SANTA MONICA, Calif., April 9, 2019 /PRNewswire/ — Entravision Communications Corporation (NYSE: EVC) (“Entravision” or the “Company”), a diversified global media and advertising technology company serving Latino consumers, today announced that on April 3, 2019 it received a notice from the New York Stock Exchange (the “NYSE”) that the Company was not in compliance with the NYSE’s continued listing requirements under the timely filing criteria established in Section 802.01E of the NYSE Listed Company Manual, because the Company did not timely file its Annual Report on Form 10-K for the fiscal year ended December 31, 2018 (its “Form 10-K”) with the Securities and Exchange Commission (the “SEC”) on or prior to the due date thereof or by the extended filing due date provided by Rule 12b-25.  Such notices are routinely issued by the NYSE when there are late filings with the SEC.  The NYSE informed the Company that, under the NYSE’s rules, the Company has six months from April 2, 2019 to file its Form 10-K with the SEC. 

    As previously disclosed by the Company in its Form 12b-25 filed with the SEC on March 18, 2019, as a result of the Company’s expanding business operations and geographical scope, including related to the acquisition of Headway and other digital businesses, the Company experienced unexpected delays in its completion of the audit of its financial statements for the year ended December 31, 2018. 

    The Company continues to work diligently to complete its audit and Form 10-K and does not currently anticipate this delay will be lengthy.  The Company intends to file its Form 10-K and report its financial results for the fourth quarter and fiscal year ended December 31, 2018 as soon as practicable.

    About Entravision Communications Corporation
    Entravision is a diversified global media, advertising technology and data analytics company that reaches and engages Latino consumers in the U.S. and other markets primarily including Mexico, Latin America and Spain. Entravision’s portfolio includes digital media properties and advertising technology platforms that deliver performance-based solutions and data insights, along with 55 television stations and 49 radio stations.  Entravision’s digital and technology businesses include Headway, a leading global provider of mobile, programmatic, data and performance digital marketing solutions, as well as Pulpo Media, the top-ranked online advertising platform in connecting businesses with U.S. Latinos. Entravision is the largest affiliate group of both the Univision and UniMás television networks, and its Spanish-language radio stations feature its nationally recognized talent. Entravision also operates Entravision Solutions, a national sales and marketing organization representing over 300 owned and affiliated radio stations, radio networks and digital media platforms, and Headway’s audio advertising platform, AudioEngage. Entravision shares of Class A Common Stock are traded on The New York Stock Exchange under the symbol: EVC. Learn more at: www.entravision.com.

    Forward-Looking Statements
    This press release contains certain forward-looking statements, including without limitation the Company’s current expectations and intentions with respect to the filing of its Form 10-K. 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 such forward-looking statements are based upon reasonable assumptions, it can give no assurance that actual results will not differ materially from these expectations, including the length of time that may be required for the Company to complete the audit and file the Form 10-K, 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 SEC.

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    SOURCE Entravision

  • Entravision Communications Corporation Provides Update on Form 10-K Filing

    Entravision Communications Corporation Provides Update on Form 10-K Filing

    SANTA MONICA, Calif., April 2, 2019 /PRNewswire/ — Entravision Communications Corporation (NYSE: EVC) (“Entravision” or the “Company”), a diversified global media and advertising technology company serving Latino consumers, today provided an update regarding its Annual Report on Form 10-K for the fiscal year ended December 31, 2018 (the “Form 10-K”).

    As previously disclosed by the Company in its Form 12b-25 filed with the Securities and Exchange Commission on March 18, 2019, as a result of the Company’s expanding business operations and geographical scope, including related to the acquisition of Headway and other digital businesses, the Company has experienced unexpected delays in its completion of the audit of its financial statements for the year ended December 31, 2018.  At the time of that filing, the Company expected that it could file its Form 10-K within the 15-day extension period provided by Rule 12b-25; however, the Company has subsequently determined it requires additional time to complete this process and file its Form 10-K.  The Company is continuing to work diligently to complete its audit and Form 10-K and does not currently anticipate this delay will be lengthy. The Company intends to file its Form 10-K and report its financial results for the fourth quarter and fiscal year ended December 31, 2018 as soon as practicable.

    About Entravision Communications Corporation 
    Entravision is a diversified global media, advertising technology and data analytics company that reaches and engages Latino consumers in the U.S. and other markets primarily including Mexico, Latin America and Spain. Entravision’s portfolio includes digital media properties and advertising technology platforms that deliver performance-based solutions and data insights, along with 55 television stations and 49 radio stations.  Entravision’s digital and technology businesses include Headway, a leading global provider of mobile, programmatic, data and performance digital marketing solutions, as well as Pulpo Media, the top-ranked online advertising platform in connecting businesses with U.S. Latinos. Entravision is the largest affiliate group of both the Univision and UniMás television networks, and its Spanish-language radio stations feature its nationally recognized talent. Entravision also operates Entravision Solutions, a national sales and marketing organization representing over 300 owned and affiliated radio stations, radio networks and digital media platforms, and Headway’s audio advertising platform, AudioEngage. Entravision shares of Class A Common Stock are traded on The New York Stock Exchange under the symbol: EVC. Learn more at: www.entravision.com. 

    Forward-Looking Statements

    This press release contains certain forward-looking statements, including without limitation the Company’s current expectations and intentions with respect to the filing of its Form 10-K. 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 such forward-looking statements are based upon reasonable assumptions, it can give no assurance that actual results will not differ materially from these expectations, including the length of time that may be required for the Company to complete the audit and file the Form 10-K, 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.

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    SOURCE Entravision Communications Corporation

  • Entravision Communications Corporation Announces Quarterly Cash Dividend of $0.05 Per Share and Expects to File Form 12b-25 for Extension of Filing Deadline for 2018 Form 10-K

    Entravision Communications Corporation Announces Quarterly Cash Dividend of $0.05 Per Share and Expects to File Form 12b-25 for Extension of Filing Deadline for 2018 Form 10-K

    SANTA MONICA, Calif., March 8, 2019 /PRNewswire/ — Entravision Communications Corporation (NYSE: EVC) (“Entravision” or the “Company”), a diversified global media and advertising technology company serving Latino consumers, today announced that its Board of Directors has 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, in an aggregate amount of approximately $4.5 million. The quarterly dividend will be payable on March 29, 2019 to shareholders of record as of the close of business on March 20, 2019, and the common stock will trade ex-dividend on March 19, 2019. The Company currently anticipates that future cash dividends will be paid on a quarterly basis; however, any decision to pay future cash dividends will be subject to approval by the Company’s Board of Directors.

    The Company also announced that it expects to file a notification of late filing on Form 12b-25 with the Securities and Exchange Commission, which provides an automatic 15-day extension of the filing deadline for its Annual Report on Form 10-K for the fourth quarter and fiscal year ended December 31, 2018 (the “Form 10-K”), to April 2, 2019.  As a result of the Company’s expanding business operations and geographical scope, including related to the acquisition of Headway and other digital businesses, the Company has experienced unexpected delays in its completion of the audit of its financial statements for the year ended December 31, 2018. The Company currently anticipates the Form 10-K will be filed within the 15-day extension period and the Company expects, as soon as practicable, to announce the timing of a conference call to discuss its financial results for the fourth quarter and fiscal year ended December 31, 2018.

    About Entravision Communications Corporation
    Entravision is a diversified global media, advertising technology and data analytics company that reaches and engages Latino consumers in the U.S. and other markets primarily including Mexico, Latin America and Spain. Entravision’s portfolio includes digital media properties and advertising technology platforms that deliver performance-based solutions and data insights, along with 55 television stations and 49 radio stations.  Entravision’s digital and technology businesses include Headway, a leading global provider of mobile, programmatic, data and performance digital marketing solutions, as well as Pulpo Media, the top-ranked online advertising platform in connecting businesses with U.S. Latinos. Entravision is the largest affiliate group of both the Univision and UniMás television networks, and its Spanish-language radio stations feature its nationally recognized talent. Entravision also operates Entravision Solutions, a national sales and marketing organization representing over 300 owned and affiliated radio stations, radio networks and digital media platforms, and Headway’s audio advertising platform, AudioEngage. Entravision shares of Class A Common Stock are traded on The New York Stock Exchange under the symbol: EVC. Learn more at: www.entravision.com.

    This press release contains certain forward-looking statements, including without limitation the Company’s current expectations with respect to the filing of its Form 10-K. 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, including the Company’s ability to complete the audit and file the Form 10-K within the extension period provided by filing a Form 12b-25, 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.

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    SOURCE Entravision Communications Corporation

  • Entravision Communications Corporation Announces Partial Debt Repayment

    Entravision Communications Corporation Announces Partial Debt Repayment

    SANTA MONICA, Calif., Dec. 18, 2018 /PRNewswire/ — Entravision Communications Corporation (NYSE: EVC), a diversified global media and advertising technology company serving Latino consumers, today announced its intention to make a prepayment on December 31, 2018 of $50 million of term loans under the company’s senior secured term loan credit facility entered into on November 30, 2017.  Entravision anticipates funding this prepayment by using cash on hand.  Following the prepayment, approximately $246 million will remain outstanding under the company’s term loan credit facility. 

    “We continue to proactively manage our capital structure and over the past several years have opportunistically reduced our total debt,” said Walter F. Ulloa, Chairman and Chief Executive Officer of Entravision.  “With a solid balance sheet and sound financial performance, we remain well positioned to continue to execute on our strategic plan.”

    About Entravision Communications Corporation
    Entravision is a diversified global media, advertising technology and data analytics company that reaches and engages Latino consumers in the U.S. and other markets primarily including Mexico, Latin America and Spain. Entravision’s portfolio includes digital media properties and advertising technology platforms that deliver performance-based solutions and data insights, along with 55 television stations and 49 radio stations.  Entravision’s digital and technology businesses include Headway, a leading global provider of mobile, programmatic, data and performance digital marketing solutions, as well as Pulpo Media, the top-ranked online advertising platform in connecting businesses with U.S. Latinos. Entravision is the largest affiliate group of both the Univision and UniMás television networks, and its Spanish-language radio stations feature its nationally recognized talent. Entravision also operates Entravision Solutions, a national sales and marketing organization representing over 300 owned and affiliated radio stations, radio networks and digital media platforms, and Headway’s audio advertising platform, AudioEngage. Entravision shares of Class A Common Stock are traded on The New York Stock Exchange under the symbol: EVC. Learn more at: www.entravision.com.

    Cision View original content:http://www.prnewswire.com/news-releases/entravision-communications-corporation-announces-partial-debt-repayment-300768431.html

    SOURCE Entravision Communications Corporation

  • Entravision Communications Corporation Reports Third Quarter 2018 Results

    Entravision Communications Corporation Reports Third Quarter 2018 Results

    SANTA MONICA, Calif., Nov. 7, 2018 /PRNewswire/ — Entravision Communications Corporation (NYSE: EVC) today reported financial results for the three- and nine-month periods ended September 30, 2018.

    Historical results, which are attached, are in thousands of U.S. dollars (except share and per share data). This press release contains certain non-GAAP financial measures as defined by SEC Regulation G. The GAAP financial measure most directly comparable to each of these non-GAAP financial measures, and a table reconciling each of these non-GAAP financial measures to its most directly comparable GAAP financial measure, are included beginning on page 11. Unaudited financial highlights are as follows:

    Three-Month Period

    Nine-Month Period

    Ended September 30,

    Ended September 30,

    2018

    2017

    % Change

    2018

    2017

    % Change

    Net revenue:

    Revenue from advertising and retransmission consent

    $

    73,397

    $

    70,612

    4

    %

    $

    213,933

    $

    198,631

    8

    %

    Revenue from spectrum usage rights

    1,178

    263,943

    (100)

    %

    1,809

    263,943

    (99)

    %

    Total net revenue

    74,575

    334,555

    (78)

    %

    215,742

    462,574

    (53)

    %

    Cost of revenue – television (spectrum usage rights) (1)

    –

    12,131

    (100)

    %

    –

    12,131

    (100)

    %

    Cost of revenue – digital media (1)

    13,240

    9,910

    34

    %

    35,249

    20,424

    73

    %

    Operating expenses (2)

    44,092

    43,044

    2

    %

    132,209

    123,281

    7

    %

    Corporate expenses (3)

    6,913

    8,209

    (16)

    %

    19,154

    19,695

    (3)

    %

    Consolidated adjusted EBITDA (4)

    11,299

    12,707

    (11)

    %

    33,102

    40,201

    (18)

    %

    Free cash flow (5)

    $

    1,887

    $

    268,849

    (99)

    %

    $

    12,142

    $

    281,717

    (96)

    %

    Net income (loss)

    $

    2,215

    $

    157,208

    (99)

    %

    $

    5,248

    $

    163,321

    (97)

    %

    Net income (loss) per share, basic

    $

    0.02

    $

    1.74

    (99)

    %

    $

    0.06

    $

    1.81

    (97)

    %

    Net income (loss) per share, diluted

    $

    0.02

    $

    1.71

    (99)

    %

    $

    0.06

    $

    1.78

    (97)

    %

    Weighted average common shares outstanding, basic

    88,852,342

    90,517,492

    89,371,750

    90,370,679

    Weighted average common shares outstanding, diluted

    90,122,425

    92,161,108

    90,574,663

    91,985,946

    (1)

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

    the corresponding revenue is recognized. Cost of revenue – television (spectrum usage rights) consists primarily of the carrying value of spectrum usage rights surrendered in the

    FCC auction for broadcast spectrum.

    (2)

    Operating expenses include direct operating and selling, general and administrative expenses. Included in operating expenses are $0.2 million and $0.3 million of non-cash stock-based compensation for the three-month periods ended September 30, 2018 and 2017, respectively, and $0.4 million and $0.8 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2018 and 2017, respectively. Operating expenses do not include corporate expenses, foreign currency (gain) loss, depreciation and amortization, impairment charge, gain (loss) on sale of assets, gain (loss) on debt extinguishment, other income (loss) and change in fair value of contingent consideration. 

    (3)

    Corporate expenses include $1.1 million and $0.8 million of non-cash stock-based compensation for the three-month periods ended September 30, 2018 and 2017, respectively, and $3.3 million and $2.3 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2018 and 2017, respectively.

    (4)

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

    (5)

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

    Commenting on the Company’s earnings results, Walter F. Ulloa, Chairman and Chief Executive Officer, said, “During the third quarter, we achieved growth in advertising revenue, driven by increases in our digital media segment. This growth in our digital media segment offset decreases in our television and radio segments. Additionally, we had a decrease in spectrum usage rights revenue compared to last year’s third quarter, when we recorded our FCC auction results. We continue to maintain a solid balance sheet, and looking ahead, we remain well positioned to build on our success in further attracting Latino and other audiences worldwide, as we execute our multi-platform strategy to the benefit of our shareholders.”

    Quarterly Cash Dividend

    The Company announced today that its Board of Directors has 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, in an aggregate amount of approximately $4.5 million. The quarterly dividend will be payable on December 31, 2018 to shareholders of record as of the close of business on December 14, 2018, and the common stock will trade ex-dividend on December 13, 2018. As previously announced, 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.

    Financial Results

    Three-Month Period Ended September 30, 2018 Compared to Three-Month Period Ended September 30, 2017

    (Unaudited)

    Three-Month Period

    Ended September 30,

    2018

    2017

    % Change

    Net revenue:

    Revenue from advertising and retransmission consent

    $

    73,397

    $

    70,612

    4

    %

    Revenue from spectrum usage rights

    1,178

    263,943

    (100)

    %

    Total net revenue

    74,575

    334,555

    (78)

    %

    Cost of revenue – television (spectrum usage rights) (1)

    –

    12,131

    (100)

    %

    Cost of revenue – digital media (1)

    13,240

    9,910

    34

    %

    Operating expenses (1)

    44,092

    43,044

    2

    %

    Corporate expenses (1)

    6,913

    8,209

    (16)

    %

    Depreciation and amortization

    4,094

    4,337

    (6)

    %

    Change in fair value of contingent consideration

    (114)

    –

    *

    Foreign currency (gain) loss

    335

    (58)

    *

    Operating income (loss)

    6,015

    256,982

    (98)

    %

    Interest expense, net

    (3,062)

    (3,500)

    (13)

    %

    Dividend income

    457

    –

    *

    Other income (loss)

    327

    –

    *

    Income (loss) before income taxes

    3,737

    253,482

    (99)

    %

    Income tax benefit (expense)

    (1,443)

    (96,167)

    (98)

    %

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

    2,294

    157,315

    (99)

    %

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

    (79)

    (107)

    (26)

    %

    Net income (loss)

    $

    2,215

    $

    157,208

    (99)

    %

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

    Net revenue from advertising and retransmission consent increased to $73.4 million for the three-month period ended September 30, 2018 from $70.6 million for the three-month period ended September 30, 2017, an increase of $2.8 million. Of the overall increase, approximately $5.3 million was attributable to our digital segment and was primarily due to the growth in the Headway business, which we acquired in the second quarter of 2017. This overall increase was offset by a decrease of approximately $1.3 million that was attributable to our television segment and was primarily due to decreases in national and local advertising revenue, partially offset by an increase in political advertising revenue, which was not material in 2017. In addition, the overall increase was offset by a decrease of approximately $1.1 million that was attributable to our radio segment and was primarily due to decreases in local and national advertising revenue, partially offset by an increase in revenue from the 2018 FIFA World Cup, and an increase in political advertising revenue, which was not material in 2017.

    Net revenue from spectrum usage rights decreased to $1.2 million for the three-month period ended September 30, 2018 from $263.9 million for the three-month period ended September 30, 2017, a decrease of $262.7 million. The decrease was primarily due to revenue earned in 2017 in connection with our participation in the FCC auction for broadcast spectrum, which revenue did not recur in the current year.

    We did not incur cost of revenue related to revenue from spectrum usage rights for the three- month period ended September 30, 2018. Cost of revenue related to revenue from spectrum usage rights was $12.1 million for the three-month period ended September 30, 2017, related to the FCC auction for broadcast spectrum.

    Cost of revenue in our digital media segment increased to $13.2 million for the three-month period ended September 30, 2018 from $9.9 million for the three-month period ended September 30, 2017, an increase of $3.3 million, primarily due to the increased revenue in our digital segment.

    Operating expenses increased to $44.1 million for the three-month period ended September 30, 2018 from $43.0 million for the three-month period ended September 30, 2017, an increase of $1.1 million. This overall increase was primarily attributable to our digital segment and was primarily due to the increase in revenue and an increase in salary expense. Additionally, the overall increase was attributable to our television segment and was primarily due to the acquisition of station KMIR-TV in the fourth quarter of 2017, which did not contribute to operating expenses in the prior year period. The overall increase was partially offset by a decrease in expenses associated with the decrease in advertising revenue and a decrease in salary expenses in our television and radio segments.

    Corporate expenses decreased to $6.9 million for the three-month period September 30, 2018 from $8.2 million for the three-month period ended September 30, 2017, a decrease of $1.3 million. The decrease was primarily due to expenses associated with the FCC auction for broadcast spectrum recorded in the three-month period ended September 30, 2017, which expenses did not recur in 2018, partially offset by increases in salary expense and non-cash stock-based compensation expense.

    Nine-Month Period Ended September 30, 2018 Compared to Nine-Month Period Ended September 30, 2017

    (Unaudited)

    Nine-Month Period

    Ended September 30,

    2018

    2017

    % Change

    Net revenue:

    Revenue from advertising and retransmission consent

    $

    213,933

    $

    198,631

    8

    %

    Revenue from spectrum usage rights

    1,809

    263,943

    (99)

    %

    Total net revenue

    215,742

    462,574

    (53)

    %

    Cost of revenue – television (spectrum usage rights) (1)

    –

    12,131

    (100)

    %

    Cost of revenue – digital media (1)

    35,249

    20,424

    73

    %

    Operating expenses (1)

    132,209

    123,281

    7

    %

    Corporate expenses (1)

    19,154

    19,695

    (3)

    %

    Depreciation and amortization

    12,052

    12,460

    (3)

    %

    Change in fair value of contingent consideration

    1,073

    –

    *

    Foreign currency (gain) loss

    531

    293

    81

    %

    Operating income (loss)

    15,474

    274,290

    (94)

    %

    Interest expense, net

    (8,509)

    (10,609)

    (20)

    %

    Dividend income

    1,002

    –

    *

    Other income (loss)

    622

    –

    *

    Income (loss) before income taxes

    8,589

    263,681

    (97)

    %

    Income tax benefit (expense)

    (3,164)

    (100,185)

    (97)

    %

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

    5,425

    163,496

    (97)

    %

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

    (177)

    (175)

    1

    %

    Net income (loss)

    $

    5,248

    $

    163,321

    (97)

    %

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

    Net revenue from advertising and retransmission consent increased to $213.9 million for the nine-month period ended September 30, 2018 from $198.6 million for the nine-month period ended September 30, 2017, an increase of $15.3 million. Of the overall increase, approximately $24.4 million was attributable to our digital segment and was primarily due to the growth in the Headway business, which we acquired in the second quarter of 2017, and which did not contribute to our results of operations for the full nine-month period in 2017. This overall increase was offset by a decrease of approximately $6.4 million that was attributable to our television segment and was primarily due to decreases in national and local advertising revenue, partially offset by increases in retransmission consent revenue and political advertising revenue, the latter of which was not material in 2017. In addition, the overall increase was offset by a decrease of approximately $2.7 million that was attributable to our radio segment and was primarily due to decreases in local and national advertising revenue, partially offset by an increase in revenue from the 2018 FIFA World Cup, and an increase in political advertising revenue, which was not material in 2017.

    Net revenue from spectrum usage rights decreased to $1.8 million for the nine-month period ended September 30, 2018 from $263.9 million for the nine-month period ended September 30, 2017, a decrease of $262.1 million. The decrease was primarily due to revenue earned in 2017 in connection with our participation in the FCC auction for broadcast spectrum, which revenue did not recur in the current year.

    We did not incur cost of revenue related to revenue from spectrum usage rights for the nine- month period ended September 30, 2018. Cost of revenue related to revenue from spectrum usage rights was $12.1 million for the nine-month periods ended September 30, 2017, related to the FCC auction for broadcast spectrum.

    Cost of revenue in our digital media segment increased to $35.2 million for the nine-month period ended September 30, 2018 from $20.4 million for the nine-month period ended September 30, 2017, an increase of $14.8 million, primarily due to the growth in the Headway business, which we acquired in the second quarter of 2017, and which did not contribute to our results of operations for the full nine-month period in 2017.

    Operating expenses increased to $132.2 million for the nine-month period ended September 30, 2018 from $123.3 million for the nine-month period ended September 30, 2017, an increase of $8.9 million. This overall increase was primarily attributable to our digital segment and was primarily due to the acquisition of Headway during the second quarter of 2017, which did not contribute to operating expenses for the full nine-month period in 2017. Additionally, the overall increase was attributable to our television segment and was primarily due to the acquisition of station KMIR-TV in the fourth quarter of 2017, which did not contribute to operating expenses in the prior year period. The overall increase was partially offset by a decrease in expenses associated with the decrease in advertising revenue and a decrease in salary expenses in our television and radio segments.

    Corporate expenses decreased to $19.2 million for the nine-month period ended September 30, 2018 from $19.7 million for the nine-month period ended September 30, 2017, a decrease of $0.5 million. The decrease was primarily due to expenses associated with the FCC auction for broadcast spectrum recorded in the nine-month period ended September 30, 2017, which expenses did not recur in 2018, and due to due diligence costs related to the Headway acquisition during the second quarter of 2017, partially offset by increases in salary expense, non-cash stock-based compensation expense, and due diligence costs related to the acquisition of Smadex, S.I. in the second quarter of 2018.  

    Segment Results

    The following represents selected unaudited segment information:

    Three-Month Period

    Nine-Month Period

    Ended September 30,

    Ended September 30,

    2018

    2017

    % Change

    2018

    2017

    % Change

    Net Revenue

    Revenue from advertising and retransmission consent

    Television

    $

    35,183

    $

    36,547

    (4)

    %

    $

    105,574

    $

    112,021

    (6)

    %

    Radio

    15,783

    16,934

    (7)

    %

    47,126

    49,816

    (5)

    %

    Digital

    22,431

    17,131

    31

    %

    61,233

    36,794

    66

    %

    Total

    73,397

    70,612

    4

    %

    213,933

    198,631

    8

    %

    Revenue from spectrum usage rights

    1,178

    263,943

    (100)

    %

    1,809

    263,943

    (99)

    %

    Total net revenue

    74,575

    334,555

    (78)

    %

    215,742

    462,574

    (53)

    %

    Cost of Revenue (1)

    Television

    $

    –

    $

    12,131

    (100)

    %

    $

    –

    $

    12,131

    (100)

    %

    Digital

    13,240

    9,910

    34

    %

    35,249

    20,424

    73

    %

    Total

    $

    13,240

    $

    22,041

    (40)

    %

    $

    35,249

    $

    32,555

    8

    %

    Operating Expenses (1)

    Television

    20,462

    20,161

    1

    %

    62,573

    60,516

    3

    %

    Radio

    14,676

    15,953

    (8)

    %

    45,393

    47,294

    (4)

    %

    Digital

    8,954

    6,930

    29

    %

    24,243

    15,471

    57

    %

    Total

    $

    44,092

    $

    43,044

    2

    %

    $

    132,209

    $

    123,281

    7

    %

    Corporate Expenses (1)

    $

    6,913

    $

    8,209

    (16)

    %

    $

    19,154

    $

    19,695

    (3)

    %

    Consolidated adjusted EBITDA (1)

    $

    11,299

    $

    12,707

    (11)

    %

    $

    33,102

    $

    40,201

    (18)

    %

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

    Entravision Communications Corporation will hold a conference call to discuss its 2018 third quarter results on November 7, 2018 at 5:00 p.m. Eastern Time. To access the conference call, please dial 412-317-5440 ten minutes prior to the start time. The call will be webcast live and archived for replay on the investor relations portion of the Company’s web site located at www.entravision.com.

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

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

    (Financial Table Follows)

    Entravision Communications Corporation

    Consolidated Balance Sheets

    (In thousands; unaudited)

    September 30,

    December 31,

    2018

    2017

    ASSETS

    Current assets

    Cash and cash equivalents

    $

    101,789

    $

    39,560

    Marketable securities

    132,410

    –

    Restricted cash

    769

    222,294

    Trade receivables, net of allowance for doubtful accounts

    78,092

    84,348

    Assets held for sale

    1,179

    –

    Prepaid expenses and other current assets

    13,217

    6,260

    Total current assets

    327,456

    352,462

    Property and equipment, net

    63,204

    60,337

    Intangible assets subject to amortization, net

    24,196

    26,758

    Intangible assets not subject to amortization

    254,506

    251,163

    Goodwill

    74,149

    70,557

    Other assets

    5,087

    4,690

    Total assets

    $

    748,598

    $

    765,967

    LIABILITIES AND STOCKHOLDERS’ EQUITY

    Current liabilities

    Current maturities of long-term debt

    $

    3,000

    $

    3,000

    Accounts payable and accrued expenses

    52,795

    57,563

    Deferred revenue

    4,351

    1,959

    Total current liabilities

    60,146

    62,522

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

    290,614

    292,489

    Other long-term liabilities

    19,237

    21,447

    Deferred income taxes

    43,172

    40,639

    Total liabilities

    413,169

    417,097

    Stockholders’ equity

    Class A common stock

    6

    7

    Class B common stock

    2

    2

    Class U common stock

    1

    1

    Additional paid-in capital

    871,321

    888,650

    Accumulated deficit

    (534,482)

    (539,730)

    Accumulated other comprehensive income (loss)

    (1,419)

    (60)

    Total stockholders’ equity

    335,429

    348,870

    Total liabilities and stockholders’ equity

    $

    748,598

    $

    765,967

    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,

    2018

    2017

    2018

    2017

    Net revenue:

    Revenue from advertising and retransmission consent

    $

    73,397

    $

    70,612

    $

    213,933

    $

    198,631

    Revenue from spectrum usage rights

    1,178

    263,943

    1,809

    263,943

    Total net revenue

    74,575

    334,555

    215,742

    462,574

    Expenses:

    Cost of revenue – television (spectrum usage rights)

    –

    12,131

    –

    12,131

    Cost of revenue – digital

    13,240

    9,910

    35,249

    20,424

    Direct operating expenses

    31,694

    30,231

    93,844

    87,238

    Selling, general and administrative expenses

    12,398

    12,813

    38,365

    36,043

    Corporate expenses

    6,913

    8,209

    19,154

    19,695

    Depreciation and amortization

    4,094

    4,337

    12,052

    12,460

    Change in fair value of contingent consideration

    (114)

    –

    1,073

    –

    Foreign currency (gain) loss

    335

    (58)

    531

    293

    68,560

    77,573

    200,268

    188,284

    Operating income (loss)

    6,015

    256,982

    15,474

    274,290

    Interest expense

    (3,995)

    (3,756)

    (11,394)

    (11,084)

    Interest income

    933

    256

    2,885

    475

    Dividend income

    457

    –

    1,002

    –

    Other income (loss)

    327

    –

    622

    –

    Income (loss) before income taxes

    3,737

    253,482

    8,589

    263,681

    Income tax benefit (expense)

    (1,443)

    (96,167)

    (3,164)

    (100,185)

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

    2,294

    157,315

    5,425

    163,496

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

    (79)

    (107)

    (177)

    (175)

    Net income (loss)

    $

    2,215

    $

    157,208

    $

    5,248

    $

    163,321

    Basic and diluted earnings per share:

    Net income per share, basic

    $

    0.02

    $

    1.74

    $

    0.06

    $

    1.81

    Net income per share, diluted

    $

    0.02

    $

    1.71

    $

    0.06

    $

    1.78

    Cash dividends declared per common share

    $

    0.05

    $

    0.05

    $

    0.15

    $

    0.11

    Weighted average common shares outstanding, basic

    88,852,342

    90,517,492

    89,371,750

    90,370,679

    Weighted average common shares outstanding, diluted

    90,122,425

    92,161,108

    90,574,663

    91,985,946

    Entravision Communications Corporation

    Consolidated Statements of Cash Flows

    (In thousands; unaudited)

    Three-Month Period

    Nine-Month Period

    Ended September 30,

    Ended September 30,

    2018

    2017

    2018

    2017

    Cash flows from operating activities:

    Net income (loss)

    $

    2,215

    $

    157,208

    $

    5,248

    $

    163,321

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

    Depreciation and amortization

    4,094

    4,337

    12,052

    12,460

    Cost of revenue – television (spectrum usage rights)

    –

    12,131

    –

    12,131

    Deferred income taxes

    913

    96,086

    1,942

    99,514

    Non-cash interest expense

    290

    226

    828

    595

    Amortization of syndication contracts

    174

    93

    526

    311

    Payments on syndication contracts

    (156)

    (85)

    (516)

    (300)

    Equity in net (income) loss of nonconsolidated affiliate

    79

    107

    177

    175

    Non-cash stock-based compensation

    1,286

    1,089

    3,711

    3,149

    Changes in assets and liabilities:

    (Increase) decrease in accounts receivable

    (592)

    (791)

    8,578

    12,790

    (Increase) decrease in prepaid expenses and other assets

    (663)

    (383)

    (7,210)

    (1,830)

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

    (2,059)

    130

    (2,839)

    (8,862)

    Net cash provided by (used in) operating activities

    5,581

    270,148

    22,497

    293,454

    Cash flows from investing activities:

    Proceeds from sale of property and equipment and intangible assets

    –

    –

    33

    –

    Purchases of property and equipment

    (6,567)

    (2,343)

    (12,277)

    (9,639)

    Purchases of intangible assets

    –

    (32,588)

    (3,153)

    (32,588)

    Purchases of businesses, net of cash acquired

    41

    –

    (3,522)

    (7,489)

    Purchases of marketable securities

    –

    –

    (159,403)

    –

    Proceeds from marketable securities

    –

    –

    25,000

    –

    Purchases of investments

    (935)

    –

    (970)

    (2,200)

    Deposits on acquisitions

    –

    (1,050)

    –

    (1,240)

    Net cash provided by (used in) investing activities

    (7,461)

    (35,981)

    (154,292)

    (53,156)

    Cash flows from financing activities:

    Proceeds from stock option exercises

    (29)

    (515)

    77

    11

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

    –

    –

    (2,239)

    –

    Payments on long-term debt

    (750)

    (938)

    (2,250)

    (2,813)

    Dividends paid

    (4,443)

    (4,532)

    (13,403)

    (10,179)

    Repurchase of Class A common stock

    –

    (1,778)

    (7,660)

    (1,778)

    Payment of contingent consideration

    –

    –

    (2,015)

    –

    Net cash provided by (used in) financing activities

    (5,222)

    (7,763)

    (27,490)

    (14,759)

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

    (1)

    35

    (11)

    17

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

    (7,103)

    226,439

    (159,296)

    225,556

    Cash, cash equivalents and restricted cash:

    Beginning

    109,661

    60,637

    261,854

    61,520

    Ending

    $

    102,558

    $

    287,076

    $

    102,558

    $

    287,076

    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,

    2018

    2017

    2018

    2017

    Consolidated adjusted EBITDA (1)

    $

    11,299

    $

    12,707

    $

    33,102

    $

    40,201

    Net revenue – FCC spectrum incentive auction

    –

    263,943

    –

    263,943

    Expenses – FCC spectrum incentive auction

    –

    (14,234)

    –

    (14,234)

    Interest expense

    (3,995)

    (3,756)

    (11,394)

    (11,084)

    Interest income

    933

    256

    2,885

    475

    Dividend income

    457

    –

    1,002

    –

    Income tax benefit (expense)

    (1,443)

    (96,167)

    (3,164)

    (100,185)

    Equity in net loss of nonconsolidated affiliates

    (79)

    (107)

    (177)

    (175)

    Amortization of syndication contracts

    (174)

    (93)

    (526)

    (311)

    Payments on syndication contracts

    156

    85

    516

    300

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

    (156)

    (276)

    (448)

    (806)

    Non-cash stock-based compensation included in corporate expenses

    (1,130)

    (813)

    (3,263)

    (2,343)

    Depreciation and amortization

    (4,094)

    (4,337)

    (12,052)

    (12,460)

    Change in fair value of contingent consideration

    114

    –

    (1,073)

    –

    Non-recurring cash severance charge

    –

    –

    (782)

    –

    Other income (loss)

    327

    –

    622

    –

    Net income (loss)

    2,215

    157,208

    5,248

    163,321

    Depreciation and amortization

    4,094

    4,337

    12,052

    12,460

    Cost of revenue – television (spectrum usage rights)

    –

    12,131

    –

    12,131

    Deferred income taxes

    913

    96,086

    1,942

    99,514

    Non-cash interest expense

    290

    226

    828

    595

    Amortization of syndication contracts

    174

    93

    526

    311

    Payments on syndication contracts

    (156)

    (85)

    (516)

    (300)

    Equity in net (income) loss of nonconsolidated affiliate

    79

    107

    177

    175

    Non-cash stock-based compensation

    1,286

    1,089

    3,711

    3,149

    Changes in assets and liabilities:

    (Increase) decrease in accounts receivable

    (592)

    (791)

    8,578

    12,790

    (Increase) decrease in prepaid expenses and other assets

    (663)

    (383)

    (7,210)

    (1,830)

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

    (2,059)

    130

    (2,839)

    (8,862)

    Cash flows from operating activities

    5,581

    270,148

    22,497

    293,454

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

    Entravision Communications Corporation

    Reconciliation of Free Cash Flow to Cash Flows From Operating Activities

    (In thousands; unaudited)

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

    Three-Month Period

    Nine-Month Period

    Ended September 30,

    Ended September 30,

    2018

    2017

    2018

    2017

    Consolidated adjusted EBITDA (1)

    $

    11,299

    $

    12,707

    $

    33,102

    $

    40,201

    Net interest expense (1)

    (2,772)

    (3,273)

    (7,681)

    (10,014)

    Dividend income

    457

    –

    1,002

    –

    Cash paid for income taxes

    (530)

    (82)

    (1,222)

    (671)

    Capital expenditures (2)

    (6,567)

    (2,343)

    (12,277)

    (9,639)

    Non-recurring cash severance charge

    –

    –

    (782)

    –

    Net revenue – FCC spectrum incentive auction

    –

    263,943

    –

    263,943

    Expenses – FCC spectrum incentive auction

    –

    (2,103)

    –

    (2,103)

    Free cash flow (1)

    1,887

    268,849

    12,142

    281,717

    Capital expenditures (2)

    6,567

    2,343

    12,277

    9,639

    Other income (loss)

    327

    –

    622

    –

    Change in fair value of contingent consideration

    114

    –

    (1,073)

    –

    Changes in assets and liabilities:

    (Increase) decrease in accounts receivable

    (592)

    (791)

    8,578

    12,790

    (Increase) decrease in prepaid expenses and other assets

    (663)

    (383)

    (7,210)

    (1,830)

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

    (2,059)

    130

    (2,839)

    (8,862)

    Cash Flows From Operating Activities

    $

    5,581

    $

    270,148

    $

    22,497

    $

    293,454

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

    (2)     Capital expenditures are not part of the consolidated statement of operations.

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    SOURCE Entravision Communications Corporation

  • Mario M. Carrera to Step down as Chief Revenue Officer of Entravision Communications Corporation

    Mario M. Carrera to Step down as Chief Revenue Officer of Entravision Communications Corporation

    SANTA MONICA, Calif., Nov. 7, 2018 /PRNewswire/ — Entravision Communications Corporation (NYSE: EVC), a diversified global media and advertising technology company serving Latino consumers, today announced that Mario M. Carrera has decided to step down as Chief Revenue Officer.  Entravision has commenced a search for a successor and Mr. Carrera will remain in his position until a replacement is named. 

    “For the past 15 years, Mario has been a valuable member of the Entravision team and a tremendous resource as we executed on our strategic initiatives,” said Walter F. Ulloa, Chairman and Chief Executive Officer of Entravision.  “On behalf of everyone at Entravision I want to personally thank him for his service and dedication to our company, our employees and the Latino community.  We hold Mario in the highest regard and wish him all the best as he embarks on the next chapter of his life.”

    “I am proud to have been part of Entravision, an outstanding organization that continues to play a critical role in the development of the Hispanic media industry, and more importantly in our local communities,” said Carrera.  “This was truly a difficult decision, but one made with the input and support of my family.  I want to express my appreciation to Walter for his leadership, friendship, and belief in my abilities, and it has been my pleasure to serve with an exceptional team of colleagues and dedicated professionals.”

    Mr. Carrera joined Entravision in 2003 and served as the Vice President and General Manager leading Entravision’s radio, television and interactive assets in Colorado.  Under his tenure in Colorado, Entravision’s Noticias Univision Colorado won 14 Emmys, in addition to KCEC-TV winning the Best 2010 Public Service Award Campaign from the Colorado Broadcasters Association.  In 2012, Carrera was elevated into corporate roles, serving first as Entravision’s Senior Vice President of Spanish Language Television, and then as Chief Revenue Officer from August 2012 to present.  Carrera is a graduate of Harvard University.

    About Entravision Communications Corporation
    Entravision is a diversified global media, advertising technology and data analytics company that reaches and engages Latino consumers in the U.S. and other markets primarily including Mexico, Latin America and Spain. Entravision’s portfolio includes digital media properties and advertising technology platforms that deliver performance-based solutions and data insights, along with 55 television stations and 49 radio stations.  Entravision’s digital and technology businesses include Headway, a leading global provider of mobile, programmatic, data and performance digital marketing solutions, as well as Pulpo Media, the top-ranked online advertising platform in connecting businesses with U.S. Latinos. Entravision is the largest affiliate group of both the Univision and UniMás television networks, and its Spanish-language radio stations feature its nationally recognized talent. Entravision also operates Entravision Solutions, a national sales and marketing organization representing over 300 owned and affiliated radio stations, radio networks and digital media platforms, and Headway’s audio advertising platform, AudioEngage. Entravision shares of Class A Common Stock are traded on The New York Stock Exchange under the symbol: EVC. Learn more at: www.entravision.com.

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    SOURCE Entravision

  • Entravision Communications Corporation Schedules Third Quarter 2018 Earnings Release And Teleconference

    Entravision Communications Corporation Schedules Third Quarter 2018 Earnings Release And Teleconference

    SANTA MONICA, Calif., Oct. 31, 2018 /PRNewswire/ — Entravision Communications Corporation (NYSE: EVC) announced today that it will release third quarter 2018 financial results after market hours on Wednesday, November 7, 2018.

    The company will also host a teleconference to discuss its third quarter financial results on Wednesday, November 7, 2018 at 5:00 p.m. Eastern Time. To access the teleconference, please dial 412-317-5440 ten minutes prior to the start time.  The teleconference will also be available via live webcast on the investor relations portion of the Company’s Web site located at www.entravision.com. 

    If you cannot listen to the teleconference at its scheduled time, there will be a replay available through Wednesday, November 21, 2018 which can be accessed by dialing (877) 344-7529 (U.S.) or (412) 317-0088 (Int’l), passcode 10125996. The webcast will also be archived on the Company’s Web site for 30 days.

    About Entravision Communications Corporation
    Entravision is a diversified global media, advertising technology and data analytics company that reaches and engages Latino consumers in the U.S. and other markets primarily including Mexico, Latin America and Spain. Entravision’s portfolio includes digital media properties and advertising technology platforms that deliver performance-based solutions and data insights, along with 55 television stations and 49 radio stations.  Entravision’s digital and technology businesses include Headway, a leading global provider of mobile, programmatic, data and performance digital marketing solutions, as well as Pulpo Media, the top-ranked online advertising platform in connecting businesses with U.S. Latinos. Entravision is the largest affiliate group of both the Univision and UniMás television networks, and its Spanish-language radio stations feature its nationally recognized talent. Entravision also operates Entravision Solutions, a national sales and marketing organization representing over 300 owned and affiliated radio stations, radio networks and digital media platforms, and Headway’s audio advertising platform, AudioEngage. Entravision shares of Class A Common Stock are traded on The New York Stock Exchange under the symbol: EVC. Learn more at: www.entravision.com. 

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    SOURCE Entravision

  • Entravision Communications Corporation To Present At The Deutsche Bank 2018 Leveraged Finance Conference

    Entravision Communications Corporation To Present At The Deutsche Bank 2018 Leveraged Finance Conference

    SANTA MONICA, Calif., Oct. 1, 2018 /PRNewswire/ — Entravision Communications Corporation (NYSE: EVC), a diversified global media and advertising technology company serving Latino consumers, today announced that Christopher T. Young, Executive Vice President, Chief Financial Officer and Treasurer, will be presenting at the Deutsche Bank 2018 Leveraged Finance Conference in Phoenix, AZ at 5:15 p.m. ET (2:15 p.m. PT) on Wednesday, October 3, 2018.

    The presentation will be made available to the public via live audio webcast, which can be accessed by visiting the investor relations section of Entravision’s corporate website at http://www.entravision.com.

    About Entravision Communications Corporation
    Entravision is a diversified global media, advertising technology and data analytics company that reaches and engages Latino consumers in the U.S. and other markets primarily including Mexico, Latin America and Spain. Entravision’s portfolio includes digital media properties and advertising technology platforms that deliver performance-based solutions and data insights, along with 55 television stations and 49 radio stations.  Entravision’s digital and technology businesses include Headway, a leading global provider of mobile, programmatic, data and performance digital marketing solutions, as well as Pulpo Media, the top-ranked online advertising platform in connecting businesses with U.S. Latinos. Entravision is the largest affiliate group of both the Univision and UniMás television networks, and its Spanish-language radio stations feature its nationally recognized talent. Entravision also operates Entravision Solutions, a national sales and marketing organization representing over 300 owned and affiliated radio stations, radio networks and digital media platforms, and Headway’s audio advertising platform, AudioEngage. Entravision shares of Class A Common Stock are traded on The New York Stock Exchange under the symbol: EVC. Learn more at: www.entravision.com. 

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  • Entravision Communications Corporation Reports Second Quarter 2018 Results

    Entravision Communications Corporation Reports Second Quarter 2018 Results

    SANTA MONICA, Calif., Aug. 2, 2018 /PRNewswire/ — Entravision Communications Corporation (NYSE: EVC) today reported financial results for the three- and six-month period ended June 30, 2018.

    Historical results, which are attached, are in thousands of U.S. dollars (except share and per share data). This press release contains certain non-GAAP financial measures as defined by SEC Regulation G. The GAAP financial measure most directly comparable to each of these non-GAAP financial measures, and a table reconciling each of these non-GAAP financial measures to its most directly comparable GAAP financial measure is included beginning on page 10. Unaudited financial highlights are as follows:

    Three-Month Period

    Six-Month Period

    Ended June 30,

    Ended June 30,

    2018

    2017

    %
    Change

    2018

    2017

    %
    Change

    Net revenue

    $

    74,329

    $

    70,509

    5

    %

    $

    141,167

    $

    128,019

    10

    %

    Cost of revenue – digital (1)

    11,384

    8,762

    30

    %

    22,009

    10,514

    109

    %

    Operating expenses (2)

    43,790

    41,945

    4

    %

    88,117

    80,237

    10

    %

    Corporate expenses (3)

    6,266

    5,619

    12

    %

    12,241

    11,486

    7

    %

    Consolidated adjusted EBITDA (4)

    14,866

    14,924

    (0)

    %

    21,803

    27,494

    (21)

    %

    Free cash flow (5)

    $

    8,664

    $

    5,643

    54

    %

    $

    10,255

    $

    12,868

    (20)

    %

    Net income (loss)

    $

    4,840

    $

    3,495

    38

    %

    $

    3,033

    $

    6,113

    (50)

    %

    Net income (loss) per share, basic and diluted

    $

    0.05

    $

    0.04

    25

    %

    $

    0.03

    $

    0.07

    (57)

    %

    Weighted average common shares outstanding, basic

    88,959,935

    90,354,982

    89,635,759

    90,296,057

    Weighted average common shares outstanding, diluted

    90,021,949

    92,033,111

    90,805,086

    91,897,150

    (1)

    Cost of revenue – digital 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 $0.1 million and $0.3 million of non-cash stock-based compensation for the three-month periods ended June 30, 2018 and 2017, respectively, and $0.3 million and $0.5 million of non-cash stock-based compensation for the six-month periods ended June 30, 2018 and 2017, respectively. Operating expenses do not include corporate expenses, foreign currency (gain) loss, depreciation and amortization, impairment charge, gain (loss) on sale of assets, gain (loss) on debt extinguishment, other income (loss) and change in fair value of contingent consideration.

    (3)

    Corporate expenses include $1.1 million and $0.8 million of non-cash stock-based compensation for the three-month periods ended June 30, 2018 and 2017, respectively, and $2.1 million and $1.5 million of non-cash stock-based compensation for the six-month periods ended June 30, 2018 and 2017, respectively.

    (4)

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

    (5)

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

    Commenting on the Company’s earnings results, Walter F. Ulloa, Chairman and Chief Executive Officer, said, “During the second quarter, we achieved revenue growth driven by increases in our digital media segment.  This growth in our digital media segment offsets a decrease in our television segment, while our radio segment was flat.  We also improved our free cash flow and net income over last year’s second quarter.  Additionally, we continued to build our digital footprint through our acquisition of Smadex, a digital advertising technology company, while implementing steps to more efficiently align operations and reduce costs.  Looking ahead, we remain well positioned to build on our success in further attracting Latino and other audiences worldwide, and expanding our advertiser base to the benefit of our shareholders.”

    Quarterly Cash Dividend

    The Company announced today that its Board of Directors has 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, in an aggregate amount of approximately $4.5 million. The quarterly dividend will be payable on September 28, 2018 to shareholders of record as of the close of business on September 14, 2018, and the common stock will trade ex-dividend on September 13, 2018. As previously announced, 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.

    Financial Results

    Three-Month Period Ended June 30, 2018 Compared to Three-Month Period Ended

    June 30, 2017 

    (Unaudited)

    Three-Month Period

    Ended June 30,

    2018

    2017

    % Change

    Net revenue

    $

    74,329

    $

    70,509

    5

    %

    Cost of revenue – digital (1)

    11,384

    8,762

    30

    %

    Operating expenses (1)

    43,790

    41,945

    4

    %

    Corporate expenses (1)

    6,266

    5,619

    12

    %

    Depreciation and amortization

    4,019

    4,577

    (12)

    %

    Change in fair value of contingent consideration

    (913)

    –

    *

    Foreign currency (gain) loss

    (17)

    351

    *

    Operating income (loss)

    9,800

    9,255

    6

    %

    Interest expense, net

    (2,962)

    (3,573)

    (17)

    %

    Dividend income

    417

    –

    *

    Other income (loss)

    273

    –

    *

    Income (loss) before income taxes

    7,528

    5,682

    32

    %

    Income tax benefit (expense)

    (2,652)

    (2,119)

    25

    %

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

    4,876

    3,563

    37

    %

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

    (36)

    (68)

    (47)

    %

    Net income (loss)

    $

    4,840

    $

    3,495

    38

    %

    (1)

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

    Net revenue increased to $74.3 million for the three-month period ended June 30, 2018 from $70.5 million for the three-month period ended June 30, 2017, an increase of $3.8 million. Of the overall increase, approximately $5.0 million was attributable to our digital segment and was primarily due to growth in the Headway business which was acquired during the second quarter of 2017. The overall increase was partially offset by a decrease in our television segment of approximately $1.3 million primarily due to decreases in national and local advertising revenue, partially offset by an increase in retransmission consent revenue and an increase in political advertising revenue, the latter of which was not material in 2017. Revenue in our radio segment remained constant with an increase in revenue from the 2018 FIFA World Cup offset by decreases in local and national revenue.

    Cost of revenue in our digital media segment increased to $11.4 million for the three-month period ended June 30, 2018 from $8.8 million for the three-month period ended June 30, 2017, an increase of $2.6 million, primarily due to the increased revenue in our digital segment.

    Operating expenses increased to $43.8 million for the three-month period ended June 30, 2018 from $41.9 million for the three-month period ended June 30, 2017, an increase of $1.9 million. The increase was primarily attributable to our digital segment and was primarily driven by expenses associated with the increase in revenue and an increase in salary expense. We also had an increase in operating expenses in our television segment due to the acquisition of station KMIR-TV during the fourth quarter of 2017, which did not contribute to operating expenses in the prior year period, partially offset by a decrease in expenses associated with the decrease in advertising revenue and a decrease in salary expense.

    Corporate expenses increased to $6.3 million for the three-month period ended June 30, 2018 from $5.6 million for the three-month period ended June 30, 2017, an increase of $0.7 million. The increase was primarily due to legal and financial due diligence costs related to the Smadex acquisition and an increase in non-cash stock-based compensation expense.

    Six-Month Period Ended June 30, 2018 Compared to Six-Month Period Ended

    June 30, 2017

    (Unaudited)

    Six-Month Period

    Ended June 30,

    2018

    2017

    % Change

    Net revenue

    $

    141,167

    $

    128,019

    10

    %

    Cost of revenue – digital (1)

    22,009

    10,514

    109

    %

    Operating expenses (1)

    88,117

    80,237

    10

    %

    Corporate expenses (1)

    12,241

    11,486

    7

    %

    Depreciation and amortization

    7,958

    8,123

    (2)

    %

    Change in fair value of contingent consideration

    1,187

    –

    *

    Foreign currency (gain) loss

    196

    351

    (44)

    %

    Operating income (loss)

    9,459

    17,308

    (45)

    %

    Interest expense, net

    (5,447)

    (7,109)

    (23)

    %

    Dividend income

    545

    –

    *

    Other income (loss)

    295

    –

    *

    Income (loss) before income taxes

    4,852

    10,199

    (52)

    %

    Income tax benefit (expense)

    (1,721)

    (4,018)

    (57)

    %

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

    3,131

    6,181

    (49)

    %

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

    (98)

    (68)

    44

    %

    Net income (loss)

    $

    3,033

    $

    6,113

    (50)

    %

    (1)

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

    Net revenue increased to $141.2 million for the six-month period ended June 30, 2018 from $128.0 million for the six-month period ended June 30, 2017, an increase of $13.2 million. Of the overall increase, approximately $19.1 million was attributable to our digital segment and was primarily due to the acquisition of Headway during the second quarter of 2017, which did not contribute to our results of operations for the full six-month period in 2017. The overall increase was partially offset by a decrease in our television segment of approximately $4.5 million primarily due to decreases in national and local advertising revenue, partially offset by an increase in retransmission consent revenue and an increase in political advertising revenue, the latter of which was not material in 2017.  Additionally, the overall increase was partially offset by a decrease in our radio segment of approximately $1.6 million primarily due to decreases in local and national advertising revenue, partially offset by an increase in net revenue from the 2018 FIFA World Cup.

    Cost of revenue in our digital media segment increased to $22.0 million for the six-month period ended June 30, 2018 from $10.5 million for the six-month period ended June 30, 2017, an increase of $11.5 million, primarily due to the acquisition of Headway during the second quarter of 2017, which did not contribute to our results of operations for the full six-month period in 2017.

    Operating expenses increased to $88.1 million for the six-month period ended June 30, 2018 from $80.2 million for the six-month period ended June 30, 2017, an increase of $7.9 million. The increase was primarily due to the acquisition of Headway in our digital segment during the second quarter of 2017, which did not contribute to operating expenses for the full six-month period in the prior year. Additionally, approximately $1.8 million of the overall increase was attributable to our television segment primarily due to the acquisition of station KMIR-TV in the fourth quarter of 2017, which did not contribute to operating expenses in the prior year period, partially offset by a decrease in expenses associated with the decrease in advertising revenue and a decrease in salary expense.

    Corporate expenses increased to $12.2 million for the six-month period ended June 30, 2018 from $11.5 million for the six-month period ended June 30, 2017, an increase of $0.7 million. The increase was primarily due to legal and financial due diligence costs related to the Smadex acquisition and an increase in non-cash stock-based compensation expense, partially offset by a decrease in due diligence costs incurred in prior year related to the Headway acquisition.

    Segment Results

    The following represents selected unaudited segment information:

    Three-Month Period

    Six-Month Period

    Ended June 30,

    Ended June 30,

    2018

    2017

    % Change

    2018

    2017

    % Change

    Net Revenue

    Television

    $

    36,531

    $

    37,764

    (3)

    %

    $

    71,022

    $

    75,474

    (6)

    %

    Radio

    17,240

    17,163

    0

    %

    31,343

    32,882

    (5)

    %

    Digital

    20,558

    15,582

    32

    %

    38,802

    19,663

    97

    %

    Total

    $

    74,329

    $

    70,509

    5

    %

    $

    141,167

    $

    128,019

    10

    %

    Cost of Revenue – digital (1)

    Digital

    $

    11,384

    $

    8,762

    30

    %

    $

    22,009

    $

    10,514

    109

    %

    Operating Expenses (1)

    Television

    20,589

    20,150

    2

    %

    42,111

    40,355

    4

    %

    Radio

    15,437

    15,620

    (1)

    %

    30,717

    31,341

    (2)

    %

    Digital

    7,764

    6,175

    26

    %

    15,289

    8,541

    79

    %

    Total

    $

    43,790

    $

    41,945

    4

    %

    $

    88,117

    $

    80,237

    10

    %

    Corporate Expenses (1)

    $

    6,266

    $

    5,619

    12

    %

    $

    12,241

    $

    11,486

    7

    %

    Consolidated adjusted EBITDA (1)

    $

    14,866

    $

    14,924

    (0)

    %

    $

    21,803

    $

    27,494

    (21)

    %

    (1)

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

    Entravision Communications Corporation will hold a conference call to discuss its 2018 second quarter results on August 2, 2018 at 5 p.m. Eastern Time. To access the conference call, please dial 412-317-5440 ten minutes prior to the start time. The call will be webcast live and archived for replay on the investor relations portion of the Company’s web site located at www.entravision.com.

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

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

    (Financial Table Follows)

    Entravision Communications Corporation

    Consolidated Balance Sheets

    (In thousands; unaudited)

    June 30,

    December 31,

    2018

    2017

    ASSETS

    Current assets

    Cash and cash equivalents

    $

    108,892

    $

    39,560

    Marketable securities

    132,435

    –

    Restricted cash

    769

    222,294

    Trade receivables, net of allowance for doubtful accounts

    76,378

    84,348

    Assets held for sale

    1,179

    –

    Prepaid expenses and other current assets

    11,990

    6,260

    Total current assets

    331,643

    352,462

    Property and equipment, net

    58,562

    60,337

    Intangible assets subject to amortization, net

    25,828

    26,758

    Intangible assets not subject to amortization

    254,506

    251,163

    Goodwill

    73,566

    70,557

    Other assets

    4,442

    4,690

    Total assets

    $

    748,547

    $

    765,967

    LIABILITIES AND STOCKHOLDERS’ EQUITY

    Current liabilities

    Current maturities of long-term debt

    $

    3,000

    $

    3,000

    Accounts payable and accrued expenses

    52,787

    57,563

    Deferred revenue

    3,386

    1,959

    Total current liabilities

    59,173

    62,522

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

    291,237

    292,489

    Other long-term liabilities

    19,553

    21,447

    Deferred income taxes

    42,326

    40,639

    Total liabilities

    412,289

    417,097

    Stockholders’ equity

    Class A common stock

    6

    7

    Class B common stock

    2

    2

    Class U common stock

    1

    1

    Additional paid-in capital

    874,508

    888,650

    Accumulated deficit

    (536,697)

    (539,730)

    Accumulated other comprehensive income (loss)

    (1,562)

    (60)

    Total stockholders’ equity

    336,258

    348,870

    Total liabilities and stockholders’ equity

    $

    748,547

    $

    765,967

    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,

    2018

    2017

    2018

    2017

    Net revenue

    $

    74,329

    $

    70,509

    $

    141,167

    $

    128,019

    Expenses:

    Cost of revenue – digital

    11,384

    8,762

    22,009

    10,514

    Direct operating expenses

    31,117

    29,915

    62,150

    57,007

    Selling, general and administrative expenses

    12,673

    12,030

    25,967

    23,230

    Corporate expenses

    6,266

    5,619

    12,241

    11,486

    Depreciation and amortization

    4,019

    4,577

    7,958

    8,123

    Change in fair value of contingent consideration

    (913)

    –

    1,187

    –

    Foreign currency (gain) loss

    (17)

    351

    196

    351

    64,529

    61,254

    131,708

    110,711

    Operating income (loss)

    9,800

    9,255

    9,459

    17,308

    Interest expense

    (4,001)

    (3,683)

    (7,399)

    (7,328)

    Interest income

    1,039

    110

    1,952

    219

    Dividend income

    417

    –

    545

    –

    Other income (loss)

    273

    –

    295

    –

    Income (loss) before income taxes

    7,528

    5,682

    4,852

    10,199

    Income tax benefit (expense)

    (2,652)

    (2,119)

    (1,721)

    (4,018)

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

    4,876

    3,563

    3,131

    6,181

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

    (36)

    (68)

    (98)

    (68)

    Net income (loss)

    $

    4,840

    $

    3,495

    $

    3,033

    $

    6,113

    Basic and diluted earnings per share:

    Net income (loss) per share, basic and diluted

    $

    0.05

    $

    0.04

    $

    0.03

    $

    0.07

    Cash dividends declared per common share

    $

    0.05

    $

    0.03

    $

    0.05

    $

    0.06

    Weighted average common shares outstanding, basic

    88,959,935

    90,354,982

    89,635,759

    90,296,057

    Weighted average common shares outstanding, diluted

    90,021,949

    92,033,111

    90,805,086

    91,897,150

    Entravision Communications Corporation

    Consolidated Statements of Cash Flows

    (In thousands; unaudited)

    Three-Month Period

    Six-Month Period

    Ended June 30,

    Ended June 30,

    2018

    2017

    2018

    2017

    Cash flows from operating activities:

    Net income (loss)

    $

    4,840

    $

    3,495

    $

    3,033

    $

    6,113

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

    Depreciation and amortization

    4,019

    4,577

    7,958

    8,123

    Deferred income taxes

    2,043

    1,955

    1,029

    3,428

    Non-cash interest expense

    414

    186

    538

    369

    Amortization of syndication contracts

    176

    109

    352

    218

    Payments on syndication contracts

    (174)

    (102)

    (360)

    (215)

    Equity in net (income) loss of nonconsolidated affiliate

    36

    68

    98

    68

    Non-cash stock-based compensation

    1,176

    1,085

    2,425

    2,060

    Changes in assets and liabilities:

    (Increase) decrease in accounts receivable

    (1,873)

    2,602

    9,170

    13,581

    (Increase) decrease in prepaid expenses and other assets

    (2,566)

    (556)

    (6,547)

    (1,447)

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

    5,197

    (3,029)

    (780)

    (8,992)

    Net cash provided by operating activities

    13,288

    10,390

    16,916

    23,306

    Cash flows from investing activities:

    Proceeds from sale of property and equipment and intangible assets

    33

    –

    33

    –

    Purchases of property and equipment

    (2,680)

    (5,730)

    (5,710)

    (7,296)

    Purchases of intangible assets

    –

    –

    (3,153)

    –

    Purchases of businesses, net of cash acquired

    (3,563)

    (7,489)

    (3,563)

    (7,489)

    Purchases of marketable securities

    –

    –

    (159,403)

    –

    Proceeds from marketable securities

    25,000

    –

    25,000

    –

    Purchases of investments

    (35)

    (1,950)

    (35)

    (2,200)

    Deposits on acquisitions

    –

    –

    –

    (190)

    Net cash provided by (used in) investing activities

    18,755

    (15,169)

    (146,831)

    (17,175)

    Cash flows from financing activities:

    Proceeds from stock option exercises

    106

    215

    106

    526

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

    (12)

    –

    (2,239)

    –

    Payments on long-term debt

    (750)

    (937)

    (1,500)

    (1,875)

    Dividends paid

    (4,442)

    (2,826)

    (8,960)

    (5,647)

    Repurchase of Class A common stock

    (5,258)

    –

    (7,660)

    –

    Payments of contingent consideration

    (2,015)

    –

    (2,015)

    –

    Net cash used in financing activities

    (12,371)

    (3,548)

    (22,268)

    (6,996)

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

    (4)

    (18)

    (10)

    (18)

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

    19,668

    (8,345)

    (152,193)

    (883)

    Cash, cash equivalents and restricted cash:

    Beginning

    89,993

    68,982

    261,854

    61,520

    Ending

    $

    109,661

    $

    60,637

    $

    109,661

    $

    60,637

    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,

    2018

    2017

    2018

    2017

    Consolidated adjusted EBITDA (1)

    $

    14,866

    $

    14,924

    $

    21,803

    $

    27,494

    Interest expense

    (4,001)

    (3,683)

    (7,399)

    (7,328)

    Interest income

    1,039

    110

    1,952

    219

    Dividend income

    417

    –

    545

    –

    Income tax benefit (expense)

    (2,652)

    (2,119)

    (1,721)

    (4,018)

    Equity in net loss of nonconsolidated affiliates

    (36)

    (68)

    (98)

    (68)

    Amortization of syndication contracts

    (176)

    (109)

    (352)

    (218)

    Payments on syndication contracts

    174

    102

    360

    215

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

    (76)

    (307)

    (292)

    (530)

    Non-cash stock-based compensation included in corporate expenses

    (1,100)

    (778)

    (2,133)

    (1,530)

    Depreciation and amortization

    (4,019)

    (4,577)

    (7,958)

    (8,123)

    Change in fair value of contingent consideration

    913

    –

    (1,187)

    –

    Non-recurring cash severance charge

    (782)

    –

    (782)

    –

    Other income (loss)

    273

    –

    295

    –

    Net income (loss)

    4,840

    3,495

    3,033

    6,113

    Depreciation and amortization

    4,019

    4,577

    7,958

    8,123

    Deferred income taxes

    2,043

    1,955

    1,029

    3,428

    Non-cash interest expense

    414

    186

    538

    369

    Amortization of syndication contracts

    176

    109

    352

    218

    Payments on syndication contracts

    (174)

    (102)

    (360)

    (215)

    Equity in net (income) loss of nonconsolidated affiliate

    36

    68

    98

    68

    Non-cash stock-based compensation

    1,176

    1,085

    2,425

    2,060

    Changes in assets and liabilities:

    (Increase) decrease in accounts receivable

    (1,873)

    2,602

    9,170

    13,581

    (Increase) decrease in prepaid expenses and other assets

    (2,566)

    (556)

    (6,547)

    (1,447)

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

    5,197

    (3,029)

    (780)

    (8,992)

    Cash flows from operating activities

    13,288

    10,390

    16,916

    23,306

    (1)

    Consolidated adjusted EBITDA is defined on page 1.

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

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

    Three-Month Period

    Six-Month Period

    Ended June 30,

    Ended June 30,

    2018

    2017

    2018

    2017

    Consolidated adjusted EBITDA (1)

    $

    14,866

    $

    14,924

    $

    21,803

    $

    27,494

    Net interest expense (1)

    (2,549)

    (3,387)

    (4,909)

    (6,740)

    Dividend income

    417

    –

    545

    –

    Cash paid for income taxes

    (608)

    (164)

    (692)

    (590)

    Capital expenditures (2)

    (2,680)

    (5,730)

    (5,710)

    (7,296)

    Non-recurring cash severance charge

    (782)

    –

    (782)

    –

    Free cash flow (1)

    8,664

    5,643

    10,255

    12,868

    Capital expenditures (2)

    2,680

    5,730

    5,710

    7,296

    Other income (loss)

    273

    –

    295

    –

    Change in fair value of contingent consideration

    913

    –

    (1,187)

    –

    Changes in assets and liabilities:

    (Increase) decrease in accounts receivable

    (1,873)

    2,602

    9,170

    13,581

    (Increase) decrease in prepaid expenses and other assets

    (2,566)

    (556)

    (6,547)

    (1,447)

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

    5,197

    (3,029)

    (780)

    (8,992)

    Cash Flows From Operating Activities

    $

    13,288

    $

    10,390

    $

    16,916

    $

    23,306

    (1)

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

    (2)

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

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    SOURCE Entravision Communications Corporation