Financials & Governance

Entravision Communications Corporation Announces Participation In Noble Capital Markets C-Suite Interview Series

SANTA MONICA, Calif., Sept. 2, 2020 /PRNewswire/ — Entravision Communications Corporation (NYSE: EVC), a leading global media and marketing technology company that engages consumers, today announced their participation in Noble Capital Markets’ C-Suite Interview Series, presented by Channelchek.

The interview was led by Noble Capital Markets Senior Media & Entertainment Analyst Michael Kupinski. Joining Michael was Christopher Young, Chief Financial Officer of Entravision Communications. Key topics discussed in this interview include:

Recent digital media strategy changes and outlook
Covid effects on networks and digital platforms
Positive cash flow despite lower 2Q revenues
Expected impact of political advertising in 2020
Illegal immigration policy effect on its Hispanic markets
Near-term acquisition outlook and strategy

The interview was recorded on August 18, and is available now on Channelchek.

About Entravision Communications Corporation
Entravision is a diversified global media, marketing and technology company that reaches and engages Latino consumers in the United States 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 54 television stations and 49 radio stations. Entravision’s digital and technology businesses include Smadex, a leading technology platform providing mobile, programmatic, data and performance digital marketing solutions. 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 shares of Class A Common Stock are traded on The New York Stock Exchange under the symbol: EVC. Learn more at: www.entravision.com.

About Noble Capital Markets
Noble Capital Markets, Inc. was incorporated in 1984 as a full-service SEC / FINRA registered broker-dealer, dedicated exclusively to serving underfollowed small / microcap companies through investment banking, wealth management, trading & execution, and equity research activities. Over the past 36 years, Noble has raised billions of dollars for these companies and published more than 45,000 equity research reports. www.noblecapitalmarkets.com email: contact@noblecapitalmarkets.com

About Channelchek
Channelchek (.com) is a comprehensive investor-centric portal – featuring more than 6,000 emerging growth companies – that provides advanced market data, independent research, balanced news, video webcasts, exclusive c-suite interviews, and access to virtual road shows. The site is available to the public at every level without cost or obligation. Research on Channelchek is provided by Noble Capital Markets, Inc., an SEC / FINRA registered broker-dealer since 1984. www.channelchek.com email: contact@channelchek.com

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SOURCE Entravision Communications Corporation

September 2, 2020

Entravision Communications Corporation Reports Second Quarter 2020 Results

SANTA MONICA, Calif., Aug. 4, 2020 /PRNewswire/ — Entravision Communications Corporation (NYSE: EVC) today reported financial results for the three- and six-month periods ended June 30, 2020.

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

	Three-Month Period							Six-Month Period
	Ended June 30,							Ended June 30,
	2020		2019		% Change			2020		2019		% Change
Net revenue	$	45,116	$	69,241		(35)	%	$	109,365	$	133,921		(18)	%
Cost of revenue – digital media (1)		6,447		8,859		(27)	%		13,794		16,501		(16)	%
Operating expenses (2)		33,037		43,200		(24)	%		73,307		85,944		(15)	%
Corporate expenses (3)		5,384		6,501		(17)	%		12,224		13,395		(9)	%
Foreign currency (gain) loss		(155)		(82)		89	%		1,353		50	*

Consolidated adjusted EBITDA (4)		1,724		12,579		(86)	%		11,402		20,636		(45)	%

Free cash flow (5)	$	(1,408)	$	1,860	*			$	3,821	$	3,153		21	%

Net income (loss)	$	2,338	$	(16,279)	*			$	(33,254)	$	(14,855)		124	%

Net income per share, basic and diluted	$	0.03	$	(0.19)	*			$	(0.39)	$	(0.17)		129	%

Weighted average common shares outstanding, basic		84,123,530		85,359,998					84,220,649		85,728,820
Weighted average common shares outstanding, diluted		84,669,250		85,359,998					84,220,649		85,728,820


(1)	Cost of revenue – digital media consists primarily of the costs of online media acquired from third-party publishers. Media cost is classified as cost of revenue in the period in which the corresponding revenue is recognized.
(2)	For purposes of presentation in this table, the operating expenses line item includes direct operating and selling, general and administrative expenses. Included in operating expenses are $0.1 million of non-cash stock-based compensation for each of the three-month periods ended June 30, 2020 and 2019, and $0.2 million of non-cash stock-based compensation for each of the six-month periods ended June 30, 2020 and 2019. Also for purposes of presentation in this table, the operating expenses line item does not include corporate expenses, foreign currency (gain) loss, depreciation and amortization, impairment charge, gain (loss) on sale of assets, gain (loss) on debt extinguishment, other income (loss) and change in fair value of contingent consideration.
(3)	Corporate expenses include $0.7 million of non-cash stock-based compensation for each of the three-month periods ended June 30, 2020 and 2019, and $1.4 million of non-cash stock-based compensation for each of the six-month periods ended June 30, 2020 and 2019.
(4)	Consolidated adjusted EBITDA means net income (loss) plus gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation included in operating and corporate expenses, net interest expense, other operating gain (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from the Federal Communications Commission, or FCC, spectrum incentive auction less related expenses, expenses associated with investments, acquisitions and dispositions and certain pro-forma cost savings. We use the term consolidated adjusted EBITDA because that measure is defined in the agreement governing our current credit facility (“the 2017 Credit Facility”) and does not include gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation, net interest expense, other income (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from FCC spectrum incentive auction less related expenses, expenses associated with investments, acquisitions and dispositions and certain pro-forma cost savings.
(5)	Free cash flow is defined as consolidated adjusted EBITDA less cash paid for income taxes, net interest expense, capital expenditures and non-recurring cash expenses plus dividend income, and other operating gain (loss). Net interest expense is defined as interest expense, less non-cash interest expense relating to amortization of debt finance costs, and less interest income.

Commenting on the Company’s earnings results, Walter F. Ulloa, Chairman and Chief Executive Officer, said, “Our second quarter results were affected by the COVID-19 pandemic and the resulting economic crisis, which resulted in declines in our television, radio and digital segments compared to the prior year. We expect a sustained adverse impact in future periods, depending upon the extent and duration of the economic downturn brought on by the pandemic. Nonetheless, we continue to maintain a solid balance sheet, have reduced costs and will continue to undertake an extensive review of our business in order to more efficiently align operations and further reduce costs. Looking ahead, we remain well positioned to build on our success in further attracting Latino and other audiences worldwide, as we execute our multiplatform strategy to the benefit of our shareholders.”

Quarterly Cash Dividend

The Company announced today that its Board of Directors approved a quarterly cash dividend to shareholders of $0.025 per share on the Company’s Class A, Class B and Class U common stock, in an aggregate amount of approximately $2.1 million. The quarterly dividend will be payable on September 30, 2020 to shareholders of record as of the close of business on September 15, 2020, and the common stock will trade ex-dividend on September 14, 2020. 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, 2020 Compared to Three-Month Period Ended
June 30, 2019
(Unaudited)

	Three-Month Period
	Ended June 30,
	2020		2019		% Change
Net revenue	$	45,116	$	69,241		(35)	%
Cost of revenue – digital media (1)		6,447		8,859		(27)	%
Operating expenses (1)		33,037		43,200		(24)	%
Corporate expenses (1)		5,384		6,501		(17)	%
Depreciation and amortization		3,873		4,306		(10)	%
Change in fair value contingent consideration		–		(2,735)		(100)	%
Impairment charge		–		22,368		(100)	%
Foreign currency (gain) loss		(155)		(82)		89	%
Other operating (gain) loss		(2,030)		(1,597)		27	%

Operating income (loss)		(1,440)		(11,579)		(88)	%
Interest expense, net		(1,485)		(2,697)		(45)	%
Dividend income		–		251		(100)	%

Income (loss) before income taxes		(2,925)		(14,025)		(79)	%

Income tax benefit (expense)		5,263		(2,252)	*
Net income (loss) before equity in net income (loss) of nonconsolidated affiliates		2,338		(16,277)	*
Equity in net income (loss) of nonconsolidated affiliates, net of tax		–		(2)		(100)	%
Net income (loss)	$	2,338	$	(16,279)	*


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

Net revenue decreased to $45.1 million for the three-month period ended June 30, 2020 from $69.2 million for the three-month period ended June 30, 2019, a decrease of $24.1 million. Of the overall decrease, approximately $11.1 million was attributable to our television segment due to decreases in revenue from spectrum usage rights and local and national advertising revenue, partially offset by increases in political advertising revenue and retransmission consent revenue. The decrease in local and national advertising revenue was primarily a result of the continuing economic crisis resulting from the COVID-19 pandemic, ratings declines, competitive factors with other Spanish-language broadcasters, and changing demographic preferences of audiences. We have previously noted a trend for advertising to move increasingly from traditional media, such as television, to new media, such as digital media, and we expect this trend to continue. In addition, approximately $5.4 million of the overall decrease was attributable to our digital segment and was primarily due to declines in international revenue and the continuing economic crisis resulting from the COVID-19 pandemic. This decline in digital revenue is being driven by a trend whereby revenue is shifting more to programmatic revenue. In addition, approximately $7.6 million of the overall decrease was attributable to our radio segment and was primarily due to decreases in local and national advertising revenue, partially offset by an increase in political advertising revenue. The decrease in local and national advertising revenue was primarily a result of the continuing economic crisis resulting from the COVID-19 pandemic, ratings declines and competitive factors with other Spanish-language broadcasters, and changing demographic preferences of audiences. We have previously noted a trend for advertising to move increasingly from traditional media, such as radio, to new media, such as digital media, and we expect this trend to continue.

Cost of revenue in our digital segment decreased to $6.4 million for the three-month period ended June 30, 2020 from $8.9 million for the three-month period ended June 30, 2019, a decrease of $2.5 million, primarily due to a decrease in expenses associated with the decrease in revenue in our digital segment.

Operating expenses decreased to $33.0 million for the three-month period ended June 30, 2020 from $43.2 million for the three-month period ended June 30, 2019, a decrease of $10.2 million. The decrease was primarily due to decreases in salary expense, as a result of the company-wide reduction in salaries implemented effective April 16, 2020, and expenses associated with the decrease in advertising revenue.

Corporate expenses decreased to $5.4 million for the three-month period ended June 30, 2020 from $6.5 million for the three-month period ended June 30, 2019, a decrease of $1.1 million. The decrease was primarily due to decreases in salary expense, as a result of the company-wide reduction in salaries implemented effective April 16, 2020, and audit fees.

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 United States, primarily those operations related to our Headway business. As a result, we have operating expense, attributable to foreign currency, which is primarily related to the operations related to our Headway business. We had a foreign currency gain of $0.2 million for the three-month period ended June 30, 2020 compared to a foreign currency gain of $0.1 million for the three-month period ended June 30, 2019. Foreign currency gain was primarily due to currency fluctuations that affected our digital segment operations located outside the United States, primarily those related to the Headway business.

Six-Month period ended June 30, 2020 Compared to Six-Month Period Ended
June 30, 2019
(Unaudited)

	Six-Month Period
	Ended June 30,
	2020		2019		% Change
Net revenue	$	109,365	$	133,921		(18)	%
Cost of revenue – digital media (1)		13,794		16,501		(16)	%
Operating expenses (1)		73,307		85,944		(15)	%
Corporate expenses (1)		12,224		13,395		(9)	%
Depreciation and amortization		8,385		8,222		2	%
Change in fair value contingent consideration		–		(2,376)		(100)	%
Impairment charge		39,835		22,368		78	%
Foreign currency (gain) loss		1,353		50	*
Other operating (gain) loss		(2,866)		(3,593)		(20)	%

Operating income (loss)		(36,667)		(6,590)		456	%
Interest expense, net		(3,542)		(5,268)		(33)	%
Dividend income		24		506		(95)	%

Income (loss) before income taxes		(40,185)		(11,352)		254	%

Income tax benefit (expense)		6,931		(3,345)	*
Net income (loss) before equity in net income (loss) of nonconsolidated affiliates		(33,254)		(14,697)		126	%
Equity in net income (loss) of nonconsolidated affiliates, net of tax		–		(158)		(100)	%
Net income (loss)	$	(33,254)	$	(14,855)		124	%


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

Net revenue decreased to $109.4 million for the six-month period ended June 30, 2020 from $133.9 million for the six-month period ended June 30, 2019, a decrease of $24.5 million. Of the overall decrease, approximately $10.2 million was attributable to our television segment due to decreases in revenue from spectrum usage rights and local and national advertising revenue, partially offset by increases in political advertising revenue and retransmission consent revenue. The decrease in local and national advertising revenue was primarily a result of the continuing economic crisis resulting from the COVID-19 pandemic, ratings declines, competitive factors with other Spanish-language broadcasters, and changing demographic preferences of audiences. We have previously noted a trend for advertising to move increasingly from traditional media, such as television, to new media, such as digital media, and we expect this trend to continue. In addition, approximately $6.6 million of the overall decrease was attributable to our digital segment and was primarily due to declines in international revenue and the continuing economic crisis resulting from the COVID-19 pandemic. This decline in digital revenue is being driven by a trend whereby revenue is shifting more to programmatic revenue. In addition, approximately $7.8 million of the overall decrease was attributable to our radio segment and was primarily due to decreases in local and national advertising revenue, partially offset by an increase in political advertising revenue. The decrease in local and national advertising revenue was primarily a result of the continuing economic crisis resulting from the COVID-19 pandemic, ratings declines and competitive factors with other Spanish-language broadcasters, and changing demographic preferences of audiences. We have previously noted a trend for advertising to move increasingly from traditional media, such as radio, to new media, such as digital media, and we expect this trend to continue.

Cost of revenue in our digital segment decreased to $13.8 million for the six-month period ended June 30, 2020 from $16.5 million for the six-month period ended June 30, 2019, a decrease of $2.7 million, primarily due to a decrease in expenses associated with the decrease in revenue in our digital segment.

Operating expenses decreased to $73.3 million for the six-month period ended June 30, 2020 from $85.9 million for the six-month period ended June 30, 2019, a decrease of $12.6 million. The decrease was primarily due to decreases in salary expense, as a result of the company-wide reduction in salaries implemented effective April 16, 2020, and expenses associated with the decrease in advertising revenue.

Corporate expenses decreased to $12.2 million for the six-month period ended June 30, 2020 from $13.4 million for the six-month period ended June 30, 2019, a decrease of $1.2 million. The decrease was primarily due to decreases in salary expense, as a result of the company-wide reduction in salaries implemented effective April 16, 2020, and audit fees.

Impairment charge related to certain FCC licenses in our television and radio reporting units was $23.5 and $8.8 million, respectively, for the six-month period ended June 30, 2020. Impairment charge related to goodwill in our digital reporting unit was $0.8 million for the six-month period ended June 30, 2020. Impairment charges related to intangibles subject to amortization and property and equipment in our digital reporting unit was $5.3 million and $1.5 million, respectively, for the six-month period ended June 30, 2020.

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 United States, primarily those operations related to our Headway business. As a result, we have operating expense, attributable to foreign currency, which is primarily related to the operations related to our Headway business. We had a foreign currency loss of $1.4 million for the six-month period ended June 30, 2020 compared to a foreign currency loss of $0.1 million for the six-month period ended June 30, 2019. Foreign currency loss was primarily due to currency fluctuations that affected our digital segment operations located outside the United States, primarily those related to the Headway business.

Segment Results

The following represents selected unaudited segment information:

	Three-Month Period							Six-Month Period
	Ended June 30,							Ended June 30,
		2020		2019	% Change				2020		2019	% Change
Net Revenue
Television	$	26,955	$	38,071		(29)	%	$	66,154	$	76,324		(13)	%
Digital		11,373		16,804		(32)	%		24,704		31,276		(21)	%
Radio		6,788		14,366		(53)	%		18,507		26,321		(30)	%
Total	$	45,116	$	69,241		(35)	%	$	109,365	$	133,921		(18)	%

Cost of Revenue – digital media (1)
Digital	$	6,447	$	8,859		(27)	%	$	13,794	$	16,501		(16)	%

Operating Expenses (1)
Television		17,736		20,791		(15)	%		39,493		41,532		(5)	%
Digital		6,156		8,485		(27)	%		13,020		16,205		(20)	%
Radio		9,145		13,924		(34)	%		20,794		28,207		(26)	%
Total	$	33,037	$	43,200		(24)	%	$	73,307	$	85,944		(15)	%

Corporate Expenses (1)	$	5,384	$	6,501		(17)	%	$	12,224	$	13,395		(9)	%

Consolidated adjusted EBITDA (1)	$	1,724	$	12,579		(86)	%	$	11,402	$	20,636		(45)	%


(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 2020 second quarter results on August 4, 2020 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 is a diversified global media, marketing and technology company that reaches and engages Latino consumers in the United States 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 54 television stations and 49 radio stations. Entravision’s digital and technology businesses include Smadex, a leading technology platform providing mobile, programmatic, data and performance digital marketing solutions. 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 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. 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,
	2020		2019
ASSETS
Current assets
Cash and cash equivalents	$	69,270	$	33,123
Marketable securities		65,098		91,662
Restricted cash		735		734
Trade receivables, net of allowance for doubtful accounts		51,706		71,406
Assets held for sale		3,099		950
Prepaid expenses and other current assets		16,586		11,557
Total current assets		206,494		209,432
Property and equipment, net		74,810		79,642
Intangible assets subject to amortization, net		9,752		16,772
Intangible assets not subject to amortization		216,853		252,544
Goodwill		45,711		46,511
Operating leases right of use asset		35,126		43,837
Other assets		7,428		7,462
Total assets	$	596,174	$	656,200


LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Current maturities of long-term debt	$	3,000	$	3,000
Accounts payable and accrued expenses		48,572		53,931
Operating lease liabilities		7,830		9,056
Total current liabilities		59,402		65,987
Long-term debt, less current maturities, net of unamortized debt issuance costs		211,736		213,024
Long-term operating lease liabilities		32,784		41,387
Other long-term liabilities		3,385		3,371
Deferred income taxes		38,607		44,259
Total liabilities		345,914		368,028

Stockholders’ equity
Class A common stock		6		6
Class B common stock		2		2
Class U common stock		1		1
Additional paid-in capital		830,900		836,170
Accumulated deficit		(581,130)		(547,876)
Accumulated other comprehensive income (loss)		481		(131)
Total stockholders’ equity		250,260		288,172
Total liabilities and stockholders’ equity	$	596,174	$	656,200

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,
	2020		2019		2020		2019
Net revenue	$	45,116	$	69,241	$	109,365	$	133,921

Expenses:
Cost of revenue – digital media		6,447		8,859		13,794		16,501
Direct operating expenses		22,140		29,655		48,819		58,585
Selling, general and administrative expenses		10,897		13,545		24,488		27,359
Corporate expenses		5,384		6,501		12,224		13,395
Depreciation and amortization		3,873		4,306		8,385		8,222
Change in fair value contingent consideration		–		(2,735)		–		(2,376)
Impairment charge		–		22,368		39,835		22,368
Foreign currency (gain) loss		(155)		(82)		1,353		50
Other operating (gain) loss		(2,030)		(1,597)		(2,866)		(3,593)
		46,556		80,820		146,032		140,511
Operating income (loss)		(1,440)		(11,579)		(36,667)		(6,590)
Interest expense		(2,024)		(3,554)		(4,704)		(7,044)
Interest income		539		857		1,162		1,776
Dividend income		—		251		24		506
Income (loss) before income taxes		(2,925)		(14,025)		(40,185)		(11,352)
Income tax benefit (expense)		5,263		(2,252)		6,931		(3,345)

Income (loss) before equity in net income (loss) of nonconsolidated affiliate		2,338		(16,277)		(33,254)		(14,697)
Equity in net income (loss) of nonconsolidated affiliate, net of tax		–		(2)		–		(158)
Net income (loss)	$	2,338	$	(16,279)	$	(33,254)	$	(14,855)

Basic and diluted earnings per share:
Net income (loss) per share, basic and diluted	$	0.03	$	(0.19)	$	(0.39)	$	(0.17)

Cash dividends declared per common share	$	0.03	$	0.05	$	0.08	$	0.10

Weighted average common shares outstanding, basic		84,123,530		85,359,998		84,220,649		85,728,820
Weighted average common shares outstanding, diluted		84,669,250		85,359,998		84,220,649		85,728,820

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

	Three-Month Period				Six-Month Period
	Ended June 30,				Ended June 30,
	2020		2019		2020		2019
Cash flows from operating activities:
Net income (loss)	$	2,338	$	(16,279)	$	(33,254)	$	(14,855)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		3,873		4,306		8,385		8,222
Impairment charge		—		22,368		39,835		22,368
Deferred income taxes		(5,585)		1,002		(7,398)		1,472
Non-cash interest		163		238		332		489
Amortization of syndication contracts		128		125		258		249
Payments on syndication contracts		(123)		(92)		(253)		(227)
Equity in net (income) loss of nonconsolidated affiliate		—		2		—		158
Non-cash stock-based compensation		803		835		1,592		1,635
(Gain) loss on disposal of property and equipment		(627)		75		(627)		161
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		12,031		(4,038)		19,513		9,619
(Increase) decrease in prepaid expenses and other assets		4,064		1,811		5,090		2,680
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(9,616)		(4,990)		(14,010)		(12,301)
Net cash provided by operating activities		7,449		5,363		19,463		19,670
Cash flows from investing activities:
Proceeds from sale of property and equipment and intangibles		3,989		—		3,989		—
Purchases of property and equipment		(3,005)		(7,910)		(5,676)		(13,982)
Purchases of intangible assets		(3)		—		(158)		–
Purchases of marketable securities		—		(1,160)		–		(1,160)
Proceeds from marketable securities		10,243		10,960		26,860		21,681
Purchases of investments		—		(100)		—		(300)
Net cash provided by (used in) investing activities		11,224		1,790		25,015		6,239
Cash flows from financing activities:
Tax payments related to shares withheld for share-based compensation plans		(15)		—		(15)		(751)
Payments on long-term debt		(750)		(750)		(1,500)		(1,500)
Dividends paid		(2,104)		(4,269)		(6,322)		(8,540)
Repurchase of Class A common stock		—		(1,302)		(525)		(9,008)
Payments of capitalized debt costs		—		(225)		—		(225)
Net cash used in financing activities		(2,869)		(6,546)		(8,362)		(20,024)
Effect of exchange rates on cash, cash equivalents and restricted cash		(45)		21		32		13
Net increase (decrease) in cash, cash equivalents and restricted cash		15,759		628		36,148		5,898
Cash, cash equivalents and restricted cash:
Beginning		54,246		52,735		33,857		47,465
Ending	$	70,005	$	53,363	$	70,005	$	53,363

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,
		2020		2019		2020		2019

Consolidated adjusted EBITDA (1)	$	1,724	$	12,579	$	11,402	$	20,636

Interest expense		(2,024)		(3,554)		(4,704)		(7,044)
Interest income		539		857		1,162		1,776
Dividend income		–		251		24		506
Income tax expense		5,263		(2,252)		6,931		(3,345)
Equity in net loss of nonconsolidated affiliates		–		(2)		–		(158)
Amortization of syndication contracts		(129)		(125)		(258)		(249)
Payments on syndication contracts		123		92		253		227
Non-cash stock-based compensation included in direct operating expenses		(104)		(116)		(235)		(250)
Non-cash stock-based compensation included in corporate expenses		(699)		(719)		(1,357)		(1,385)
Depreciation and amortization		(3,873)		(4,306)		(8,385)		(8,222)
Change in fair value contingent consideration		–		2,735		–		2,376
Impairment charge		–		(22,368)		(39,835)		(22,368)
Non-recurring cash severance charge		(512)		(948)		(1,118)		(948)
Other operating gain (loss)		2,030		1,597		2,866		3,593
Net income (loss)		2,338		(16,279)		(33,254)		(14,855)

Depreciation and amortization		3,873		4,306		8,385		8,222
Impairment charge		–		22,368		39,835		22,368
Deferred income taxes		(5,585)		1,002		(7,398)		1,472
Non-cash interest		163		238		332		489
Amortization of syndication contracts		128		125		258		249
Payments on syndication contracts		(123)		(92)		(253)		(227)
Equity in net (income) loss of nonconsolidated affiliate		–		2		–		158
Non-cash stock-based compensation		803		835		1,592		1,635
(Gain) loss on disposal of property and equipment		(627)		75		(627)		161
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		12,031		(4,038)		19,513		9,619
(Increase) decrease in prepaid expenses and other assets		4,064		1,811		5,090		2,680
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(9,616)		(4,990)		(14,010)		(12,301)
Cash flows from operating activities		7,449		5,363		19,463		19,670


(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,
		2020		2019		2020		2019
Consolidated adjusted EBITDA (1)	$	1,724	$	12,579	$	11,402	$	20,636
Net interest expense (1)		(1,322)		(2,459)		(3,210)		(4,779)
Dividend income		–		251		24		506
Cash paid for income taxes		(323)		(1,250)		(467)		(1,873)
Capital expenditures (2)		(3,005)		(7,910)		(5,676)		(13,982)
Non-recurring cash severance charge		(512)		(948)		(1,118)		(948)
Other operating gain (loss)		2,030		1,597		2,866		3,593
Free cash flow (1)		(1,408)		1,860		3,821		3,153

Capital expenditures (2)		3,005		7,910		5,676		13,982
Change in fair value of contingent consideration		–		2,735		–		2,376
(Gain) loss on disposal of property and equipment		(627)		75		(627)		161
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		12,031		(4,038)		19,513		9,619
(Increase) decrease in prepaid expenses and other assets		4,064		1,811		5,090		2,680
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(9,616)		(4,990)		(14,010)		(12,301)
Cash Flows From Operating Activities	$	7,449	$	5,363	$	19,463	$	19,670


(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

August 4, 2020

Entravision Communications Corporation Schedules Second Quarter 2020 Earnings Release And Teleconference

SANTA MONICA, Cailf., July 29, 2020 /PRNewswire/ — Entravision Communications Corporation (NYSE: EVC), a leading global media and advertising technology company, announced that it will host a teleconference to discuss its second quarter 2020 financial results on Tuesday, August 4, 2020, 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 website located at www.entravision.com.

If you cannot listen to the teleconference at its scheduled time, there will be a replay available through Tuesday, August 25 2020 which can be accessed by dialing (877) 344-7529 (U.S.) or (412) 317-0088 (Int’l), passcode 10146680. The webcast will also be archived on the Company’s website for 30 days.

About Entravision Communications Corporation
Entravision is a diversified global media and marketing technology company that reaches and engages consumers in the U.S. and other markets, primarily including Mexico, Latin America and Spain. The Company’s portfolio includes Entravision Digital, a digital media and advertising technology platform that delivers performance-based solutions and data insights, along with 55 television stations and 49 radio stations. 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 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 Communications Corporation

July 29, 2020

Entravision Named Winner of the Colorado Top Workplaces 2020 Award by The Denver Post

SANTA MONICA, Calif., May 21, 2020 /PRNewswire/ — Entravision Communications Corporation, (NYSE: EVC), a leading global media and marketing technology company that engages consumers, announced today it has been awarded a Top Workplaces 2020 honor by The Denver Post. The list is based solely on employee feedback gathered through a third-party survey administered by employee engagement technology partner Energage, LLC. The anonymous survey uniquely measures 15 drivers of engaged cultures that are critical to the success of any organization: including alignment, execution, and connection, just to name a few.

Entravision is a leader in the Colorado market, receiving numerous recognitions in the past, including 24 Emmy awards in 13 categories in 2019. This is the first time Entravision has been named to The Denver Post’s Top Workplaces 2020 list. The specific rankings of companies and how they are placed in three categories, small, mid-size and large, will be announced at a special awards celebration to be held later this year.

“We are extremely proud and honored to be recognized by The Denver Post as a top workplace in the state of Colorado,” said Don Daboub, Senior Vice President of Entravision Colorado. “This is a testament to the hard work and effort put forth by all our employees and the Company as a whole. It is truly impressive to witness the commitment in delivering unparalleled content to our audiences and unique opportunities for our advertisers, all while maintaining an exciting, enjoyable and rewarding workplace. We are pleased to accept this award and congratulate all the other winners.”

“For more than a decade, the Top Workplaces award has helped organizations stand out among their competitors to attract talent,” said Eric Rubino, CEO of Energage. “This differentiation is more important than ever in today’s tight labor market. Establishing a continuous conversation with employees so you have a deep understanding of your unique culture is proven to help achieve higher referral rates, lower employee turnover, and double the employee engagement levels. No longer is recognition simply a much-deserved cause for celebration, but it’s fast becoming mission-critical to establish a competitive advantage for recruitment and retention.”

About Entravision Communications Corporation

Entravision is a diversified global media, and marketing technology company that reaches and engages consumers in the U.S. and other markets primarily including Mexico, Latin America and Spain. The Company’s portfolio includes Entravision Digital, a digital media and advertising technology platform that delivers performance-based solutions and data insights, along with 55 television stations and 49 radio stations. 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 shares of Class A Common Stock are traded on The New York Stock Exchange under the symbol: EVC. Learn more at: www.entravision.com.

About Energage

Energage, a certified B-corporation, offers web-based solutions and advisory services that help organizations recruit and retain the right talent. Home of Top Workplaces research, Energage offers solutions that collect, understand and amplify the voice of the employee, enabling organizations to reduce unwanted turnover, lower recruiting costs and increase retention. Based on more than 13 years of culture research, advanced comparative analytics, and patented algorithms trained on more than 20 million employees at 58,000 companies, Energage has isolated the 15 drivers of engaged cultures that are critical to the success of any organization. For more information, please visit energage.com.

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SOURCE Entravision Communications Corporation

May 21, 2020

Entravision Communications Corporation Reports First Quarter 2020 Results

SANTA MONICA, Calif., May 7, 2020 /PRNewswire/ — Entravision Communications Corporation (NYSE: EVC) today reported financial results for the three-month period ended March 31, 2020.

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
	Ended March 31,
	2020		2019		% Change
Net revenue	$	64,249	$	64,680		(1)	%
Cost of revenue – digital media (1)		7,347		7,642		(4)	%
Operating expenses (2)		40,270		42,744		(6)	%
Corporate expenses (3)		6,840		6,894		(1)	%
Foreign currency (gain) loss		1,508		132		1042	%

Consolidated adjusted EBITDA (4)		9,679		8,057		20	%

Free cash flow (5)	$	5,229	$	1,293		304	%

Net income (loss)	$	(35,592)	$	1,424	*

Net income per share, basic and diluted	$	(0.42)	$	0.02	*

Weighted average common shares outstanding, basic		84,317,767		86,101,741
Weighted average common shares outstanding, diluted		84,317,767		87,152,987


(1)	Cost of revenue – digital media consists primarily of the costs of online media acquired from third-party publishers. Media cost is classified as cost of revenue in the period in which the corresponding revenue is recognized.
(2)	For purposes of presentation in this table, the operating expenses line item includes direct operating and selling, general and administrative expenses. Included in operating expenses are $0.1 million of non-cash stock-based compensation for each of the three-month periods ended March 31, 2020 and 2019. Also for purposes of presentation in this table, the operating expenses line item does not include corporate expenses, foreign currency (gain) loss, depreciation and amortization, impairment charge, gain (loss) on sale of assets, gain (loss) on debt extinguishment, other income (loss) and change in fair value of contingent consideration.
(3)	Corporate expenses include $0.7 million of non-cash stock-based compensation for each of the three-month periods ended March 31, 2020 and 2019.
(4)	Consolidated adjusted EBITDA means net income (loss) plus gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation included in operating and corporate expenses, net interest expense, other income (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from the Federal Communications Commission, or FCC, spectrum incentive auction less related expenses, expenses associated with investments, acquisitions and dispositions and certain pro-forma cost savings. We use the term consolidated adjusted EBITDA because that measure is defined in the agreement governing our current credit facility (“the 2017 Credit Facility”) and does not include gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation, net interest expense, other income (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from FCC spectrum incentive auction less related expenses, expenses associated with investments, acquisitions and dispositions and certain pro-forma cost savings.
(5)	Free cash flow is defined as consolidated adjusted EBITDA less cash paid for income taxes, net interest expense, capital expenditures and non-recurring cash expenses plus dividend income, and FCC reimbursement for broadcast television repack less related cash expenses. Net interest expense is defined as interest expense, less non-cash interest expense relating to amortization of debt finance costs, and less interest income.

Commenting on the Company’s earnings results, Walter F. Ulloa, Chairman and Chief Executive Officer, said, “Our first quarter results were affected by the COVID-19 pandemic and the resulting economic crisis late in the period, which resulted in declines in our radio and digital segments compared to the prior year. However, we did achieve growth in our television segment compared to the first quarter of 2019. We expect a significantly greater adverse impact in future periods, depending upon the extent and duration of the economic downturn. We continue to maintain a solid balance sheet and are undertaking an extensive review of our business in order 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, as we execute our multiplatform strategy to the benefit of our shareholders.”

Quarterly Cash Dividend

The Company announced today that its Board of Directors approved a quarterly cash dividend to shareholders of $0.025 per share on the Company’s Class A, Class B and Class U common stock, in an aggregate amount of approximately $2.1 million. The quarterly dividend will be payable on June 30, 2020 to shareholders of record as of the close of business on June 15, 2020, and the common stock will trade ex-dividend on June 12, 2020. 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.

Impairment

Due to the current economic crisis resulting from the COVID-19 pandemic, we experienced a decline in performance across all our reporting units beginning late in the first quarter of 2020. Additionally, the digital reporting unit was already facing declining results prior to the onset of the pandemic, caused by continuing competitive pressures and rapid changes in the digital advertising industry, which then further accelerated late in the quarter as a result of the economic crisis resulting from the pandemic. The results of our television and radio reporting units prior to the onset of the pandemic were exceeding internal budgets, driven in large part by political advertising revenue, but declined sharply in the last few weeks of the quarter because of the pandemic and the resulting economic crisis. As a result, we updated our internal forecasts of future performance and determined that triggering events had occurred during the first quarter of 2020 that required interim impairment assessments related to goodwill, indefinite lived intangible assets and long-lived assets. As a result of these assessments, we recognized impairment charges totaling $39.8 million in the three-month period ended March 31, 2020.

Financial Results

Three-Month period ended March 31, 2020 Compared to Three-Month Period Ended
March 31, 2019
(Unaudited)

	Three-Month Period
	Ended March 31,
	2020		2019		% Change
Net revenue	$	64,249	$	64,680		(1)	%
Cost of revenue – digital media (1)		7,347		7,642		(4)	%
Operating expenses (1)		40,270		42,744		(6)	%
Corporate expenses (1)		6,840		6,894		(1)	%
Depreciation and amortization		4,512		3,916		15	%
Change in fair value contingent consideration		–		359		(100)	%
Impairment charge		39,835		–	*
Foreign currency (gain) loss		1,508		132		1042	%
Other operating (gain) loss		(836)		(1,996)		(58)	%

Operating income (loss)		(35,227)		4,989	*
Interest expense, net		(2,056)		(2,571)		(20)	%
Dividend income		23		255		(91)	%

Income (loss) before income taxes		(37,260)		2,673	*

Income tax benefit (expense)		1,668		(1,093)	*
Net income (loss) before equity in net income (loss) of nonconsolidated affiliates		(35,592)		1,580	*
Equity in net income (loss) of nonconsolidated affiliates, net of tax		–		(156)		(100)	%
Net income (loss)	$	(35,592)	$	1,424	*


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

Net revenue decreased to $64.2 million for the three-month period ended March 31, 2020 from $64.7 million for the three-month period ended March 31, 2019, a decrease of $0.5 million. Of the overall decrease, approximately $1.2 million was attributable to our digital segment and was primarily due to declines in international revenue. This decline in digital revenue is being driven by a trend whereby revenue is shifting more to programmatic revenue. In addition, approximately $0.3 million of the overall decrease was attributable to our radio segment and was primarily due to decreases in local and national advertising revenue, as a result primarily of ratings declines, competitive factors with other Spanish-language broadcasters and changing demographic preferences of audiences. Additionally, as we have previously noted, there is a trend for advertising to move increasingly from traditional media, such as radio, to new media, such as digital media, and we expect this trend to continue. The overall decrease was partially offset by an increase of approximately $0.9 million in our television segment due to increases in political advertising revenue and retransmission consent revenue, partially offset by decreases in revenue from spectrum usage rights and local and national advertising revenue, as a result primarily of ratings declines, competitive factors with other Spanish-language broadcasters and changing demographic preferences of audiences. Notwithstanding the increase in our television segment, as we have previously noted, there is a trend for advertising to move increasingly from traditional media, such as television, to new media, such as digital media, and we expect this trend to continue.

Cost of revenue in our digital segment decreased to $7.3 million for the three-month period ended March 31, 2020 from $7.6 million for the three-month period ended March 31, 2019, a decrease of $0.3 million, primarily due to a decrease in expenses associated with the decrease in revenue in our digital segment.

Operating expenses decreased to $40.3 million for the three-month period ended March 31, 2020 from $42.7 million for the three-month period ended March 31, 2019, a decrease of $2.4 million. The decrease was primarily due to a decrease in expenses associated with the decrease in revenue.

Corporate expenses decreased to $6.8 million for the three-month period ended March 31, 2020 from $6.9 million for the three-month period ended March 31, 2019, a decrease of $0.1 million.

Impairment charge related to certain FCC licenses in our television and radio reporting units was $23.5 and $8.8 million, respectively, for the three-month period ended March 31, 2020. Impairment charge related to goodwill in our digital reporting unit was $0.8 million for the three-month period ended March 31, 2020. Impairment charges related to intangibles subject to amortization and property and equipment in our digital reporting unit was $5.3 million and $1.5 million, respectively, for the three-month period ended March 31, 2020.

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 United States, primarily those operations related to our Headway business. As a result, we have operating expense, attributable to foreign currency, that is primarily related to the operations related to our Headway business. We had a foreign currency loss of $1.5 million for the three-month period ended March 31, 2020 compared to a foreign currency loss of $0.1 million for the three-month period ended March 31, 2019. Foreign currency loss was primarily due to currency fluctuations that affected our digital segment operations located outside the U.S., primarily those related to the Headway business.

Segment Results

The following represents selected unaudited segment information:

	Three-Month Period
	Ended March 31,
	2020		2019		% Change
Net Revenue
Television	$	39,199	$	38,253		2	%
Radio		11,719		11,955		(2)	%
Digital		13,331		14,472		(8)	%
Total	$	64,249	$	64,680		(1)	%

Cost of Revenue – digital media (1)
Digital	$	7,347	$	7,642		(4)	%

Operating Expenses (1)
Television		21,757		20,741		5	%
Radio		11,649		14,283		(18)	%
Digital		6,864		7,720		(11)	%
Total	$	40,270	$	42,744		(6)	%

Corporate Expenses (1)	$	6,840	$	6,894		(1)	%

Consolidated adjusted EBITDA (1)	$	9,679	$	8,057		20	%


(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 2020 first quarter results on May 7, 2020 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 is a diversified global media, marketing and technology company that reaches and engages Latino consumers in the United States 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 Smadex, a leading technology platform providing mobile, programmatic, data and performance digital marketing solutions. 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 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. 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)

	March 31,		December 31,
	2020		2019
ASSETS
Current assets
Cash and cash equivalents	$	53,512	$	33,123
Marketable securities		74,684		91,662
Restricted cash		734		734
Trade receivables, net of allowance for doubtful accounts		63,879		71,406
Assets held for sale		6,878		950
Prepaid expenses and other current assets		15,108		11,557
Total current assets		214,795		209,432
Property and equipment, net		76,315		79,642
Intangible assets subject to amortization, net		10,192		16,772
Intangible assets not subject to amortization		216,853		252,544
Goodwill		45,711		46,511
Operating leases right of use asset		41,759		43,837
Other assets		7,506		7,462
Total assets	$	613,131	$	656,200


LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Current maturities of long-term debt	$	3,000	$	3,000
Accounts payable and accrued expenses		55,557		53,931
Operating lease liabilities		8,802		9,056
Total current liabilities		67,359		65,987
Long-term debt, less current maturities, net of unamortized debt issuance costs		212,380		213,024
Long-term operating lease liabilities		39,476		41,387
Other long-term liabilities		3,611		3,371
Deferred income taxes		42,068		44,259
Total liabilities		364,894		368,028

Stockholders’ equity
Class A common stock		6		6
Class B common stock		2		2
Class U common stock		1		1
Additional paid-in capital		832,216		836,170
Accumulated deficit		(583,468)		(547,876)
Accumulated other comprehensive income (loss)		(520)		(131)
Total stockholders’ equity		248,237		288,172
Total liabilities and stockholders’ equity	$	613,131	$	656,200

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

	Three-Month Period
	Ended March 31,
	2020		2019

Net revenue	$	64,249	$	64,680

Expenses:
Cost of revenue – digital media		7,347		7,642
Direct operating expenses		26,679		28,930
Selling, general and administrative expenses		13,591		13,814
Corporate expenses		6,840		6,894
Depreciation and amortization		4,512		3,916
Change in fair value contingent consideration		–		359
Impairment charge		39,835		–
Foreign currency (gain) loss		1,508		132
Other operating (gain) loss		(836)		(1,996)
		99,476		59,691
Operating income (loss)		(35,227)		4,989
Interest expense		(2,680)		(3,490)
Interest income		624		919
Dividend income		23		255
Income (loss) before income taxes		(37,260)		2,673
Income tax benefit (expense)		1,668		(1,093)

Income (loss) before equity in net income (loss) of nonconsolidated affiliate		(35,592)		1,580
Equity in net income (loss) of nonconsolidated affiliate, net of tax		–		(156)
Net income (loss)	$	(35,592)	$	1,424

Basic and diluted earnings per share:
Net income (loss) per share, basic and diluted	$	(0.42)	$	0.02

Cash dividends declared per common share	$	0.05	$	0.05

Weighted average common shares outstanding, basic		84,317,767		86,101,741
Weighted average common shares outstanding, diluted		84,317,767		87,152,987

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

	Three-Month Period
	Ended March 31,
	2020		2019
Cash flows from operating activities:
Net income (loss)	$	(35,592)	$	1,424
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		4,512		3,916
Impairment charge		39,835		—
Deferred income taxes		(1,813)		470
Non-cash interest		169		251
Amortization of syndication contracts		130		124
Payments on syndication contracts		(130)		(135)
Equity in net (income) loss of nonconsolidated affiliate		—		156
Non-cash stock-based compensation		789		800
(Gain) loss on disposal of property and equipment		—		86
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		7,482		13,657
(Increase) decrease in prepaid expenses and other assets		1,026		869
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(4,394)		(7,311)
Net cash provided by operating activities		12,014		14,307
Cash flows from investing activities:
Purchases of property and equipment		(2,671)		(6,072)
Purchases of intangible assets		(155)		—
Proceeds from marketable securities		16,617		10,721
Purchases of investments		—		(200)
Net cash provided by (used in) investing activities		13,791		4,449
Cash flows from financing activities:
Tax payments related to shares withheld for share-based compensation plans		—		(751)
Payments on long-term debt		(750)		(750)
Dividends paid		(4,218)		(4,271)
Repurchase of Class A common stock		(525)		(7,706)
Net cash used in financing activities		(5,493)		(13,478)
Effect of exchange rates on cash, cash equivalents and restricted cash		77		(8)
Net increase (decrease) in cash, cash equivalents and restricted cash		20,389		5,270
Cash, cash equivalents and restricted cash:
Beginning		33,857		47,465
Ending	$	54,246	$	52,735

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

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

	Three-Month Period
	Ended March 31,
	2020		2019

Consolidated adjusted EBITDA (1)	$	9,679	$	8,057

Interest expense		(2,680)		(3,490)
Interest income		624		919
Dividend income		23		255
Income tax expense		1,668		(1,093)
Equity in net loss of nonconsolidated affiliates		–		(156)
Amortization of syndication contracts		(130)		(124)
Payments on syndication contracts		130		135
Non-cash stock-based compensation included in direct operating expenses		(131)		(134)
Non-cash stock-based compensation included in corporate expenses		(658)		(666)
Depreciation and amortization		(4,512)		(3,916)
Change in fair value contingent consideration		–		(359)
Impairment charge		(39,835)		–
Non-recurring cash severance charge		(606)		–
Other operating gain (loss)		836		1,996
Net income (loss)		(35,592)		1,424

Depreciation and amortization		4,512		3,916
Impairment charge		39,835		–
Deferred income taxes		(1,813)		470
Non-cash interest		169		251
Amortization of syndication contracts		130		124
Payments on syndication contracts		(130)		(135)
Equity in net (income) loss of nonconsolidated affiliate		–		156
Non-cash stock-based compensation		789		800
(Gain) loss on disposal of property and equipment		–		86
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		7,482		13,657
(Increase) decrease in prepaid expenses and other assets		1,026		869
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(4,394)		(7,311)
Cash flows from operating activities		12,014		14,307


(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
	Ended March 31,
	2020		2019
Consolidated adjusted EBITDA (1)	$	9,679	$	8,057
Net interest expense (1)		(1,887)		(2,320)
Dividend income		23		255
Cash paid for income taxes		(145)		(623)
Capital expenditures (2)		(2,671)		(6,072)
Non-recurring cash severance charge		(606)		–
FCC Reimbursement		836		1,996
Free cash flow (1)		5,229		1,293

Capital expenditures (2)		2,671		6,072
Change in fair value of contingent consideration		–		(359)
(Gain) loss on disposal of property and equipment		–		86
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		7,482		13,657
(Increase) decrease in prepaid expenses and other assets		1,026		869
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(4,394)		(7,311)
Cash Flows From Operating Activities	$	12,014	$	14,307


(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

May 7, 2020

Entravision Communications Corporation Schedules First Quarter 2020 Earnings Release And Teleconference

SANTA MONICA, Calif., May 4, 2020 /PRNewswire/ — Entravision Communications Corporation (NYSE: EVC), a diversified global media and advertising technology company serving consumers, announced that it will host a teleconference to discuss its first quarter 2020 financial results on Thursday, May 7, 2020, 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 website located at www.entravision.com.

If you cannot listen to the teleconference at its scheduled time, there will be a replay available through May 28, 2020 which can be accessed by dialing (877) 344-7529 (U.S.) or (412) 317-0088 (Int’l), passcode 10143905. The webcast will also be archived on the Company’s website for 30 days.

About Entravision Communications Corporation
Entravision is a diversified global media, advertising technology and data analytics company that reaches and engages 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. 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 shares of Class A Common Stock are traded on The New York Stock Exchange under the symbol: EVC. Learn more at: www.entravision.com.

View original content:http://www.prnewswire.com/news-releases/entravision-communications-corporation-schedules-first-quarter-2020-earnings-release-and-teleconference-301052355.html

SOURCE Entravision Communications Corporation

May 4, 2020

Entravision Communications Corporation Reports Fourth Quarter And Full Year 2019 Results

SANTA MONICA, Calif., March 5, 2020 /PRNewswire/ — Entravision Communications Corporation (NYSE: EVC) today reported financial results for the three- and twelve-month periods ended December 31, 2019.

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

	Three Months Ended							Twelve Months Ended
	December 31,							December 31,
	2019		2018		% Change			2019		2018		% Change
Net revenue	$	70,838	$	82,073		(14)	%	$	273,575	$	297,815		(8)	%
Cost of revenue – digital media (1)		10,314		9,847		5	%		36,757		45,096		(18)	%
Operating expenses (2)		44,169		44,568		(1)	%		173,377		176,777		(2)	%
Corporate expenses (3)		7,887		7,711		2	%		28,067		26,865		4	%
Foreign currency (gain) loss		(223)		1,085	*				754		1,616		(53)	%

Consolidated adjusted EBITDA (4)		11,056		20,936		(47)	%		41,209		54,038		(24)	%

Free cash flow (5)	$	4,813	$	12,237		(61)	%	$	8,292	$	25,001		(67)	%

Net income (loss)	$	7,360	$	6,913		6	%	$	(19,712)	$	12,161	*

Net income (loss) per share, basic	$	0.09	$	0.08		13	%	$	(0.23)	$	0.14	*
Net income (loss) per share, diluted	$	0.09	$	0.08		13	%	$	(0.23)	$	0.13	*

Weighted average common shares outstanding, basic		84,226,135		88,357,076					85,107,301		89,115,997
Weighted average common shares outstanding, diluted		85,449,374		89,598,683					86,224,517		90,328,583

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

(2)	For purposes of presentation in this table, the operating expenses line item includes direct operating and selling, general and administrative expenses. Included in operating expenses are $0.4 million and $0.3 million of non-cash stock-based compensation for the three-month periods ended December 31, 2019 and 2018, respectively, and $0.7 million of non-cash stock-based compensation for each of the twelve-month periods ended December 31, 2019 and 2018. 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 $1.5 million and $1.8 million of non-cash stock-based compensation for the three-month periods ended December 31, 2019 and 2018, respectively, and $3.6 million and $5.1 million of non-cash stock-based compensation for the twelve-month periods ended December 31, 2019 and 2018, respectively.

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

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

Commenting on the Company’s earnings results, Walter F. Ulloa, Chairman and Chief Executive Officer, said, “Our fourth quarter results were impacted by declines in our television and radio segments compared to the prior year. However, we did achieve growth in our digital segment compared to the fourth quarter of 2018. 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 $4.2 million. The quarterly dividend will be payable on March 31, 2020 to shareholders of record as of the close of business on March 16, 2020, and the common stock will trade ex-dividend on March 13, 2020. 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 December 31, 2019 Compared to Three-Month Period Ended December 31, 2018
(Unaudited)

	Three Months Ended
	December 31,
	2019		2018		% Change
Net revenue		70,838		82,073		(14)	%
Cost of revenue – digital media (1)		10,314		9,847		5	%
Operating expenses (1)		44,169		44,568		(1)	%
Corporate expenses (1)		7,887		7,711		2	%
Depreciation and amortization		4,236		4,221		0	%
Change in fair value of contingent consideration		(4,102)		(2,275)		80	%
Impairment charge		654		–	*
Foreign currency (gain) loss		(223)		1,085	*
Other operating (gain) loss		(829)		(565)		47	%

Operating income (loss)		8,732		17,481		(50)	%
Interest expense, net		(2,350)		(3,261)		(28)	%
Dividend income		171		473		(64)	%
Gain (loss) on debt extinguishment		(255)		(550)		(54)	%
Impairment loss on investment		–		(1,320)		(100)	%

Income before income taxes		6,298		12,823		(51)	%
Income tax (expense) benefit		1,107		(4,713)	*

Net income (loss) before equity in net income (loss) of nonconsolidated affiliates		7,405		8,110		(9)	%
Equity in net income (loss) of nonconsolidated affiliates		(45)		(1,197)		(96)	%
Net income (loss)	$	7,360	$	6,913		6	%

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

Net revenue decreased to $70.8 million for the three-month period ended December 31, 2019 from $82.1 million for the three-month period ended December 31, 2018, a decrease of $11.3 million. Of the overall decrease, approximately $8.8 million was attributable to our television segment and was primarily due to a decrease in political advertising revenue, which was not material in 2019, and decreases in national and local advertising revenue, as a result primarily of ratings declines, competitive factors with other Spanish-language broadcasters, and changing demographic preferences of audiences. Additionally, as we have previously noted, there is a trend for advertising to move increasingly from traditional media, such as television, to new media, such as digital media, and we expect this trend to continue. In addition, approximately $2.9 million of the overall decrease was attributable to our radio segment and was primarily due to a decrease in political advertising revenue, which was not material in 2019, and decreases in national and local advertising revenue, as a result primarily of ratings declines, competitive factors with other Spanish-language broadcasters, and changing demographic preferences of audiences. Additionally, as we have previously noted, there is a trend for advertising to move increasingly from traditional media, such as radio, to new media, such as digital media, and we expect this trend to continue. This overall decrease was partially offset by an increase of approximately $0.3 million that was attributable to our digital segment.

Cost of revenue in our digital media segment increased to $10.3 million for the three-month period ended December 31, 2019 from $9.8 million for the three-month period ended December 31, 2018, an increase of $0.5 million. The increase was primarily due to the increase in costs associated with the increase in revenue.

Operating expenses decreased to $44.2 million for the three-month period ended December 31, 2019 from $44.6 million for the three-month period ended December 31, 2018, a decrease of $0.4 million. The decrease was primarily due to the decrease in expenses associated with the decrease in revenue and a decrease in salary expense, partially offset by an increase in severance expense in our radio segment.

Corporate expenses increased to $7.9 million for the three-month period December 31, 2019 from $7.7 million for the three-month period ended December 31, 2018, an increase of $0.2 million, primarily due to an increase in legal expense, partially offset by 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 is 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. We had a foreign currency gain of $0.2 million for the three-month period December 31, 2019, compared to foreign currency loss of $1.1 million for the three-month period December 31, 2018. Foreign currency gains and losses are primarily due to currency fluctuations that affected our digital segment operations located outside the U.S., primarily related to the Headway business.

Impairment charge related to indefinite life intangible assets in our television and radio reporting units was $0.7 million for the three-month period ended December 31, 2019.

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

Twelve-month Period Ended December 31, 2019 Compared to Twelve-month Period Ended December 31, 2018
(Unaudited)

	Twelve Months Ended
	December 31,
	2019		2018		% Change
Net revenue		273,575		297,815		(8)	%
Cost of revenue – digital media (1)		36,757		45,096		(18)	%
Operating expenses (1)		173,377		176,777		(2)	%
Corporate expenses (1)		28,067		26,865		4	%
Depreciation and amortization		16,648		16,273		2	%
Change in fair value of contingent consideration		(6,478)		(1,202)		439	%
Impairment charge		32,097		–	*
Foreign currency (gain) loss		754		1,616		(53)	%
Other operating (gain) loss		(5,994)		(1,187)		405	%

Operating income (loss)		(1,653)		33,577		(105)	%
Interest expense, net		(10,330)		(11,770)		(12)	%
Dividend income		918		1,475		(38)	%
Gain (loss) on debt extinguishment		(255)		(550)		(54)	%
Impairment loss on investment		–		(1,320)		(100)	%

Income before income taxes		(11,320)		21,412	*
Income tax (expense) benefit		(8,158)		(7,877)		4	%

Net income (loss) before equity in net income (loss) of nonconsolidated affiliates		(19,478)		13,535	*
Equity in net income (loss) of nonconsolidated affiliates		(234)		(1,374)		(83)	%

Net income (loss)	$	(19,712)	$	12,161	*

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

Net revenue decreased to $273.6 million for the year ended December 31, 2019 from $297.8 million for the year ended December 31, 2018, a decrease of approximately $24.2 million. Of the overall decrease, approximately $12.1 million was attributable to our digital segment and was primarily due to declines in both international and domestic revenue. This decline in digital revenue is being driven by a trend whereby revenue is shifting more to programmatic revenue. In addition, approximately $8.9 million of the overall decrease was attributable to our radio segment and was primarily due to decreases in local and national advertising revenue, as a result primarily of ratings declines, competitive factors with other Spanish-language broadcasters, changing demographic preferences of audiences, the absence of revenue from FIFA World Cup in 2019 compared to 2018, and a decrease in political advertising revenue, which was not material in 2019. Additionally, as we have previously noted, there is a trend for advertising to move increasingly from traditional media, such as radio, to new media, such as digital media, and we expect this trend to continue. Additionally, approximately $3.2 million of the overall decrease was attributable to our television segment and was primarily due to a decrease in political advertising revenue, which was not material in 2019, and decreases in national and local advertising revenue, as a result primarily of ratings declines, competitive factors with other Spanish-language broadcasters, and changing demographic preferences of audiences. Additionally, as we have previously noted, there is a trend for advertising to move increasingly from traditional media, such as television, to new media, such as digital media, and we expect this trend to continue. The overall decrease in our television segment was partially offset by increases in revenue from retransmission consent and spectrum usage rights.

Cost of revenue in our digital media segment decreased to $36.8 million for the year ended December 31, 2019 from $45.1 million for the year ended December 31, 2018, a decrease of $8.3 million, primarily due to a decrease in expenses associated with the decrease in revenue in our digital segment and a strategic shift in our digital business designed to focus on generating revenue with lower associated costs to produce higher margins.

Operating expenses decreased to $173.4 million for the twelve-month period ended December 31, 2019 from $176.8 million for the twelve-month period ended December 31, 2018, a decrease of $3.4 million. Of the overall decrease, approximately $2.7 million was attributable to our radio segment and was primarily due to a decrease in expenses associated with the decrease in advertising revenue, a decrease in bad debt expense and a decrease in salary expense, partially offset by an increase in severance expense. Additionally, $0.8 million of the overall decrease was attributable to our digital media segment and was primarily due to a decrease in expenses associated with the decrease in revenue. The overall decrease was partially offset by an increase of $0.1 attributable to our television segment and was primarily due to an increase in bad debt expense and an increase in advertising expense.

Corporate expenses increased to $28.1 million for the year ended December 31, 2019 from $26.9 million for the year ended December 31, 2018, an increase of $1.2 million. The increase was primarily due to an increase in audit fees that we incurred in 2019 in connection with the audit of our 2018 financial statements, partially offset by a decrease in non-cash stock-based compensation.

Our historical revenues have primarily been denominated in U.S. dollars, and the majority of our current revenues continue to be, and is 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 decreased to $0.8 million for the year ended December 31, 2019 from $1.6 million for the year ended December 31, 2018, a decrease of $0.8 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.

Impairment charge related to goodwill in our digital reporting unit was $27.7 million for the year ended December 31, 2019. Impairment charge related to indefinite life intangible assets in our television and radio reporting units was $4.2 million for the year ended December 31, 2019. These write-downs were made pursuant to Accounting Standards Codification (ASC) 350, Intangibles – Goodwill and Other, which requires that goodwill and certain intangible assets be tested for impairment at least annually, or more frequently if events or changes in circumstances indicate the assets might be impaired. We also recorded an impairment charge of $0.2 million to reflect the fair market value of our assets held for sale.

We recognized an impairment loss on investment of $1.3 million for the year ended 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,
		2019		2018	% Change				2019		2018	% Change
Net Revenue
Television	$	36,909	$	45,528		(19)	%	$	149,654	$	152,911		(2)	%
Radio		13,909		16,796		(17)	%		55,013		63,922		(14)	%
Digital		20,020		19,749		1	%		68,908		80,982		(15)	%
Total	$	70,838	$	82,073		(14)	%	$	273,575	$	297,815		(8)	%

Cost of Revenue (1)
Digital		10,314		9,847		5	%		36,757		45,096		(18)	%
Total	$	10,314	$	9,847		5	%	$	36,757	$	45,096		(18)	%

Operating Expenses (1)
Television		21,726		21,725		0	%		84,416		84,298		0	%
Radio		14,352		13,975		3	%		56,700		59,368		(4)	%
Digital		8,091		8,868		(9)	%		32,261		33,111		(3)	%
Total	$	44,169	$	44,568		(1)	%	$	173,377	$	176,777		(2)	%

Corporate Expenses (1)	$	7,887	$	7,711		2	%	$	28,067	$	26,865		4	%

Foreign currency (gain) loss	$	(223)	$	1,085	*			$	754	$	1,616		(53)	%

Consolidated adjusted EBITDA (1)	$	11,056	$	20,936		(47)	%	$	41,209	$	54,038		(24)	%

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

Entravision Communications Corporation will hold a conference call to discuss its 2019 fourth quarter results on March 5, 2020 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 is a diversified global media, marketing and technology 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 56 television stations and 49 radio stations. Entravision’s digital and technology businesses include Smadex, a leading technology platform providing mobile, programmatic, data and performance digital marketing solutions. 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 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. 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)

	December 31,		December 31,
	2019		2018
ASSETS
Current assets
Cash and cash equivalents	$	33,123	$	46,733
Marketable securities		91,662		132,424
Restricted Cash		734		732
Trade receivables, net of allowance for doubtful accounts		71,406		79,308
Assets held for sale		950		1,179
Prepaid expenses and other current assets		11,557		10,672
Total current assets		209,432		271,048
Property and equipment, net		79,642		64,939
Intangible assets subject to amortization, net		16,772		22,598
Intangible assets not subject to amortization		252,544		254,598
Goodwill		46,511		74,292
Operating leases right of use asset		43,837		–
Other assets		7,462		2,934
Total assets	$	656,200	$	690,409


LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Current maturities of long-term debt	$	3,000	$	3,000
Accounts payable and accrued expenses		53,931		51,034
Operating lease liabilities		9,056		–
Total current liabilities		65,987		54,034
Long-term debt, less current maturities, net of unamortized debt issuance costs		213,024		240,541
Long-term operating lease liabilities		41,387		–
Other long-term liabilities		3,371		16,418
Deferred income taxes		44,259		46,684
Total liabilities		368,028		357,677

Stockholders’ equity
Class A common stock		6		6
Class B common stock		2		2
Class U common stock		1		1
Additional paid-in capital		836,170		862,299
Accumulated deficit		(547,876)		(528,164)
Accumulated other comprehensive income (loss)		(131)		(1,412)
Total stockholders’ equity		288,172		332,732
Total liabilities and stockholders’ equity	$	656,200	$	690,409

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,
	2019		2018		2019		2018
Net revenue	$	70,838	$	82,073	$	273,575	$	297,815
Expenses:
Cost of revenue – digital media		10,314		9,847		36,757		45,096
Direct operating expenses		30,020		31,398		119,412		125,242
Selling, general and administrative expenses		14,149		13,170		53,965		51,535
Corporate expenses		7,887		7,711		28,067		26,865
Depreciation and amortization		4,236		4,221		16,648		16,273
Change in fair value of contingent consideration		(4,102)		(2,275)		(6,478)		(1,202)
Impairment charge		654		–		32,097		–
Foreign currency (gain) loss		(223)		1,085		754		1,616
Other operating (gain) loss		(829)		(565)		(5,994)		(1,187)
		62,106		64,592		275,228		264,238
Operating income (loss)		8,732		17,481		(1,653)		33,577
Interest expense		(3,102)		(4,349)		(13,683)		(15,743)
Interest income		752		1,088		3,353		3,973
Dividend income		171		473		918		1,475
Gain (loss) on debt extinguishment		(255)		(550)		(255)		(550)
Impairment loss on investment		—		(1,320)		—		(1,320)
Income before income taxes		6,298		12,823		(11,320)		21,412
Income tax (expense) benefit		1,107		(4,713)		(8,158)		(7,877)

Income (loss) before equity in net income (loss) of nonconsolidated affiliate		7,405		8,110		(19,478)		13,535
Equity in net income (loss) of nonconsolidated affiliate		(45)		(1,197)		(234)		(1,374)
Net income (loss)	$	7,360	$	6,913	$	(19,712)	$	12,161

Basic and diluted earnings per share:
Net income (loss) per share, basic	$	0.09	$	0.08	$	(0.23)	$	0.14
Net income (loss) per share, diluted	$	0.09	$	0.08	$	(0.23)	$	0.13

Cash dividends declared per common share, basic	$	0.05	$	0.05	$	0.20	$	0.20
Cash dividends declared per common share, diluted	$	0.05	$	0.05	$	0.20	$	0.20

Weighted average common shares outstanding, basic		84,226,135		88,357,076		85,107,301		89,115,997
Weighted average common shares outstanding, diluted		85,449,374		89,598,683		86,224,517		90,328,583

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

	Three-Month Period				Twelve-Month Period
	Ended December 31,				Ended December 31,
	2019		2018		2019		2018
Cash flows from operating activities:
Net income (loss)	$	7,360	$	6,913	$	(19,712)	$	12,161
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		4,236		4,221		16,648		16,273
Impairment charge		654		–		32,097		–
Impairment loss on investment		–		1,320		–		1,320
Deferred income taxes		(1,630)		2,670		5,311		4,612
Non-cash interest		166		296		881		1,124
Amortization of syndication contracts		131		125		505		651
Payments on syndication contracts		(124)		(127)		(543)		(643)
Equity in net (income) loss of nonconsolidated affiliate		45		1,197		234		1,374
Non-cash stock-based compensation		1,923		2,076		4,377		5,787
(Gain) loss on disposal of property and equipment		–		–		158		–
(Gain) loss on debt extinguishment		255		550		255		550
Changes in assets and liabilities:
(Increase) decrease in trade receivables, net		(2,093)		(2,683)		8,610		5,895
(Increase) decrease in prepaid expenses and other current assets		2,946		1,629		2,102		(5,581)
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(5,816)		(6,888)		(19,384)		(9,727)
Net cash provided by operating activities		8,053		11,299		31,539		33,796
Cash flows from investing activities:
Proceeds from sale of property and equipment and intangibles		–		–		–		33
Purchases of property and equipment		(4,101)		(4,729)		(25,283)		(17,006)
Purchases of intangibles		(2,300)		–		(2,300)		(3,153)
Purchase of a businesses, net of cash acquired		–		–		–		(3,522)
Purchases of marketable securities		–		–		(1,400)		(159,403)
Proceeds from marketable securities		15,766		–		43,647		25,000
Purchases of investments		–		(525)		(300)		(1,495)
Deposits on acquisition		147		–		–		–
Net cash provided by (used in) investing activities		9,512		(5,254)		14,364		(159,546)
Cash flows from financing activities:
Proceeds from stock option exercises		–		172		–		249
Tax payments related to shares withheld for share-based compensation plans		(915)		(29)		(1,688)		(2,268)
Payments on long-term debt		(25,750)		(50,750)		(28,000)		(53,000)
Dividends paid		(4,195)		(4,379)		(16,962)		(17,782)
Repurchase of Class A common stock		(2,208)		(6,152)		(12,565)		(13,812)
Payment of contingent consideration		–		–		–		(2,015)
Payments of capitalized debt offering and issuance costs		–		–		(225)		–
Net cash used in financing activities		(33,068)		(61,138)		(59,440)		(88,628)
Effect of exchange rates on cash, cash equivalents and restricted cash		(79)		–		(71)		(11)
Net increase (decrease) in cash and cash equivalents		(15,582)		(55,093)		(13,608)		(214,389)
Cash and cash equivalents:
Beginning		49,439		102,558		47,465		261,854
Ending	$	33,857	$	47,465	$	33,857	$	47,465

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,
		2019		2018		2019		2018
Consolidated adjusted EBITDA (1)	$	11,056	$	20,936	$	41,209	$	54,038
Interest expense		(3,102)		(4,349)		(13,683)		(15,743)
Interest income		752		1,088		3,353		3,973
Gain (loss) on debt extinguishment		(255)		(550)		(255)		(550)
Income tax (expense) benefit		1,107		(4,713)		(8,158)		(7,877)
Amortization of syndication contracts		(131)		(125)		(505)		(651)
Payments on syndication contracts		124		127		543		643
Non-cash stock-based compensation included in direct operating
expenses		(408)		(284)		(732)		(732)
Non-cash stock-based compensation included in corporate expenses		(1,515)		(1,792)		(3,645)		(5,055)
Depreciation and amortization		(4,236)		(4,221)		(16,648)		(16,273)
Change in fair value of contingent consideration		4,102		2,275		6,478		1,202
Non-recurring severance charge		(435)		–		(2,250)		(782)
Dividend income		171		473		918		1,475
Other income (loss)		829		565		5,994		1,187
Impairment charge		(654)		–		(32,097)		–
Impairment loss on investment		–		(1,320)		–		(1,320)
Equity in net income (loss) of nonconsolidated affiliates		(45)		(1,197)		(234)		(1,374)
Net income (loss)		7,360		6,913		(19,712)		12,161

Depreciation and amortization		4,236		4,221		16,648		16,273
Impairment charge		654		–		32,097		–
Impairment loss on investment		–		1,320		–		1,320
Deferred income taxes		(1,630)		2,670		5,311		4,612
Amortization of debt issuance costs		166		296		881		1,124
Amortization of syndication contracts		131		125		505		651
Payments on syndication contracts		(124)		(127)		(543)		(643)
Equity in net (income) loss of nonconsolidated affiliate		45		1,197		234		1,374
Non-cash stock-based compensation		1,923		2,076		4,377		5,787
(Gain) loss on disposal of property and equipment		–		–		158		–
(Gain) loss on debt extinguishment		255		550		255		550
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		(2,093)		(2,683)		8,610		5,895
(Increase) decrease in prepaid expenses and other assets		2,946		1,629		2,102		(5,581)
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(5,816)		(6,888)		(19,384)		(9,727)
Net cash provided by (used in) operating activities	$	8,053	$	11,299	$	31,539	$	33,796

(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,
		2019		2018		2019		2018
Consolidated adjusted EBITDA (1)	$	11,056	$	20,936	$	41,209	$	54,038
Net, cash interest expense (1)		(2,184)		(2,965)		(9,449)		(10,646)
Dividend income		171		473		918		1,475
Cash paid for income taxes		(523)		(2,043)		(2,847)		(3,265)
Capital expenditures (2)		(4,101)		(4,729)		(25,283)		(17,006)
FCC reimbursement		829		565		5,994		1,187
Non-recurring cash severance charge		(435)		–		(2,250)		(782)
Free cash flow (1)		4,813		12,237		8,292		25,001

Capital expenditures (2)		4,101		4,729		25,283		17,006
Change in fair value of contingent consideration		4,102		2,275		6,478		1,202
(Gain) loss on disposal of property and equipment		–		–		158		–
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		(2,093)		(2,683)		8,610		5,895
(Increase) decrease in prepaid expenses and other assets		2,946		1,629		2,102		(5,581)
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(5,816)		(6,888)		(19,384)		(9,727)
Cash Flows From Operating Activities	$	8,053	$	11,299	$	31,539	$	33,796

(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

March 5, 2020

Entravision Communications Corporation Schedules Fourth Quarter And Full Year 2019 Earnings Release And Teleconference

SANTA MONICA, Calif., March 4, 2020 /PRNewswire/ — Entravision Communications Corporation (NYSE: EVC), a diversified global media and advertising technology company serving Latino consumers, announced that it will host a teleconference to discuss its fourth quarter and full year 2019 financial results on Thursday, March 5, 2020, 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 website located at www.entravision.com.

If you cannot listen to the teleconference at its scheduled time, there will be a replay available through March 26, 2020 which can be accessed by dialing (877) 344-7529 (U.S.) or (412) 317-0088 (Int’l), passcode 10139642. The webcast will also be archived on the Company’s website 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. 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 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 Communications Corporation

March 4, 2020

Entravision Communications Corporation Announces Partial Debt Repayment

SANTA MONICA, Calif., Dec. 19, 2019 /PRNewswire/ — Entravision Communications Corporation (NYSE: EVC), a diversified global media and marketing technology company reaching Latino consumers, today announced its intention to make a prepayment on December 30, 2019 of $25 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 $218 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. “By maintaining a solid balance sheet we are well positioned to continue to execute on our strategic plan and return capital to our shareholders through our share repurchase program and dividend.”

About Entravision Communications Corporation
Entravision is a diversified global media and marketing technology 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 Communications Corporation

December 19, 2019

Entravision Communications Corporation Reports Third Quarter 2019 Results

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

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

	Three-Month Period							Nine-Month Period
	Ended September 30,							Ended September 30,
	2019		2018		% Change			2019		2018		% Change
Net revenue	$	68,816	$	74,575		(8)	%	$	202,737	$	215,742		(6)	%
Cost of revenue – digital media (1)		9,942		13,240		(25)	%		26,443		35,249		(25)	%
Operating expenses (2)		43,264		44,092		(2)	%		129,208		132,209		(2)	%
Corporate expenses (3)		6,785		6,913		(2)	%		20,180		19,154		5	%
Foreign currency (gain) loss		927		335		177	%		977		531		84	%

Consolidated adjusted EBITDA (4)		9,142		11,299		(19)	%		29,778		33,102		(10)	%

Free cash flow (5)	$	326	$	2,214		(85)	%	$	3,479	$	12,764		(73)	%

Net income (loss)	$	(12,217)	$	2,215	*			$	(27,072)	$	5,248	*

Net income per share, basic and diluted	$	(0.14)	$	0.02	*			$	(0.32)	$	0.06	*

Weighted average common shares outstanding, basic		84,765,694		88,852,342					85,404,250		89,371,750
Weighted average common shares outstanding, diluted		84,765,694		90,122,425					85,404,250		90,574,663

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

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

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

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

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

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

Quarterly Cash Dividend

The Company announced today that its Board of Directors approved a quarterly cash dividend to shareholders of $0.05 per share on the Company’s Class A, Class B and Class U common stock, in an aggregate amount of approximately $4.3 million. The quarterly dividend will be payable on December 31, 2019 to shareholders of record as of the close of business on December 16, 2019, and the common stock will trade ex-dividend on December 13, 2019. The Company currently anticipates that future cash dividends will be paid on a quarterly basis; however, any decision to pay future cash dividends will be subject to approval by the Board.

Goodwill and Intangible Assets Impairment

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

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

Financial Results

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

	Three-Month Period
	Ended September 30,
	2019		2018		% Change
Net revenue	$	68,816	$	74,575		(8)	%
Cost of revenue – digital media (1)		9,942		13,240		(25)	%
Operating expenses (1)		43,264		44,092		(2)	%
Corporate expenses (1)		6,785		6,913		(2)	%
Depreciation and amortization		4,190		4,094		2	%
Change in fair value contingent consideration		–		(114)		(100)	%
Impairment charge		9,075		–	*
Foreign currency (gain) loss		927		335		177	%
Other operating (gain) loss		(1,572)		(327)		381	%

Operating income (loss)		(3,795)		6,342	*
Interest expense, net		(2,712)		(3,062)		(11)	%
Dividend income		241		457		(47)	%

Income (loss) before income taxes		(6,266)		3,737	*

Income tax benefit (expense)		(5,920)		(1,443)		310	%
Net income (loss) before equity in net income (loss) of nonconsolidated affiliates		(12,186)		2,294	*
Equity in net income (loss) of nonconsolidated affiliates, net of tax		(31)		(79)		(61)	%
Net income (loss)	$	(12,217)	$	2,215	*

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

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

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

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

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

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

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

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

	Nine-Month Period
	Ended September 30,
	2019		2018		% Change
Net revenue	$	202,737	$	215,742		(6)	%
Cost of revenue – digital media (1)		26,443		35,249		(25)	%
Operating expenses (1)		129,208		132,209		(2)	%
Corporate expenses (1)		20,180		19,154		5	%
Depreciation and amortization		12,412		12,052		3	%
Change in fair value contingent consideration		(2,376)		1,073	*
Impairment charge		31,443		–	*
Foreign currency (gain) loss		977		531		84	%
Other operating (gain) loss		(5,165)		(622)		730	%

Operating income (loss)		(10,385)		16,096	*
Interest expense, net		(7,980)		(8,509)		(6)	%
Dividend income		747		1,002		(25)	%

Income (loss) before income taxes		(17,618)		8,589	*

Income tax benefit (expense)		(9,265)		(3,164)		193	%
Net income (loss) before equity in net income (loss) of nonconsolidated affiliates		(26,883)		5,425	*
Equity in net income (loss) of nonconsolidated affiliates, net of tax		(189)		(177)		7	%
Net income (loss)	$	(27,072)	$	5,248	*

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

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

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

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

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

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

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

Segment Results
The following represents selected unaudited segment information:

	Three-Month Period							Nine-Month Period
	Ended September 30,							Ended September 30,
		2019		2018	% Change				2019		2018	% Change
Net Revenue
Television	$	36,421	$	36,361		0	%	$	112,745	$	107,383		5	%
Radio		14,783		15,783		(6)	%		41,104		47,126		(13)	%
Digital		17,612		22,431		(21)	%		48,888		61,233		(20)	%
Total	$	68,816	$	74,575		(8)	%	$	202,737	$	215,742		(6)	%

Cost of Revenue – digital media (1)
Digital	$	9,942	$	13,240		(25)	%	$	26,443	$	35,249		(25)	%

Operating Expenses (1)
Television		21,158		20,462		3	%		62,690		62,573		0	%
Radio		14,141		14,676		(4)	%		42,348		45,393		(7)	%
Digital		7,965		8,954		(11)	%		24,170		24,243		(0)	%
Total	$	43,264	$	44,092		(2)	%	$	129,208	$	132,209		(2)	%

Corporate Expenses (1)	$	6,785	$	6,913		(2)	%	$	20,180	$	19,154		5	%

Consolidated adjusted EBITDA (1)	$	9,142	$	11,299		(19)	%	$	29,778	$	33,102		(10)	%

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

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

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

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

# # #
(Financial Table Follows)

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

	September 30,		December 31,
	2019		2018


ASSETS
Current assets
Cash and cash equivalents	$	48,705	$	46,733
Marketable securities		107,486		132,424
Restricted cash		734		732
Trade receivables, net of allowance for doubtful accounts		68,809		79,308
Assets held for sale		950		1,179
Prepaid expenses and other current assets		13,621		10,672
Total current assets		240,305		271,048
Property and equipment, net		79,392		64,939
Intangible assets subject to amortization, net		18,019		22,598
Intangible assets not subject to amortization		251,098		254,598
Goodwill		46,511		74,292
Operating leases right of use asset		45,058		–
Other assets		7,459		2,934
Total assets	$	687,842	$	690,409


LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Current maturities of long-term debt	$	3,000	$	3,000
Accounts payable and accrued expenses		46,766		51,034
Operating lease liabilities		8,843		–
Total current liabilities		58,609		54,034
Long-term debt, less current maturities, net of unamortized debt issuance costs		238,400		240,541
Long-term operating lease liabilities		42,672		–
Other long-term liabilities		7,531		16,418
Deferred income taxes		54,654		46,684
Total liabilities		401,866		357,677

Stockholders’ equity
Class A common stock		6		6
Class B common stock		2		2
Class U common stock		1		1
Additional paid-in capital		841,567		862,299
Accumulated deficit		(555,236)		(528,164)
Accumulated other comprehensive income (loss)		(364)		(1,412)
Total stockholders’ equity		285,976		332,732
Total liabilities and stockholders’ equity	$	687,842	$	690,409

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

	Three-Month Period				Nine-Month Period
	Ended September 30,				Ended September 30,
	2019		2018		2019		2018

Net revenue	$	68,816	$	74,575	$	202,737	$	215,742

Expenses:
Cost of revenue – digital media		9,942		13,240		26,443		35,249
Direct operating expenses		30,807		31,694		89,392		93,844
Selling, general and administrative expenses		12,457		12,398		39,816		38,365
Corporate expenses		6,785		6,913		20,180		19,154
Depreciation and amortization		4,190		4,094		12,412		12,052
Change in fair value contingent consideration		–		(114)		(2,376)		1,073
Impairment charge		9,075		–		31,443		–
Foreign currency (gain) loss		927		335		977		531
Other operating (gain) loss		(1,572)		(327)		(5,165)		(622)
		72,611		68,233		213,122		199,646
Operating income (loss)		(3,795)		6,342		(10,385)		16,096
Interest expense		(3,537)		(3,995)		(10,581)		(11,394)
Interest income		825		933		2,601		2,885
Dividend income		241		457		747		1,002
Income (loss) before income taxes		(6,266)		3,737		(17,618)		8,589
Income tax benefit (expense)		(5,920)		(1,443)		(9,265)		(3,164)

Income (loss) before equity in net income (loss) of nonconsolidated affiliate		(12,186)		2,294		(26,883)		5,425
Equity in net income (loss) of nonconsolidated affiliate, net of tax		(31)		(79)		(189)		(177)
Net income (loss)	$	(12,217)	$	2,215	$	(27,072)	$	5,248

Basic and diluted earnings per share:
Net income (loss) per share, basic and diluted	$	(0.14)	$	0.02	$	(0.32)	$	0.06

Cash dividends declared per common share	$	0.05	$	0.05	$	0.15	$	0.15

Weighted average common shares outstanding, basic		84,765,694		88,852,342		85,404,250		89,371,750
Weighted average common shares outstanding, diluted		84,765,694		90,122,425		85,404,250		90,574,663

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

	Three-Month Period				Nine-Month Period
	Ended September 30,				Ended September 30,
	2019		2018		2019		2018

Cash flows from operating activities:
Net income (loss)	$	(12,217)	$	2,215	$	(27,072)	$	5,248
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		4,190		4,094		12,412		12,052
Impairment charge		9,075		–		31,443		–
Deferred income taxes		5,469		913		6,941		1,942
Non-cash interest		226		290		715		828
Amortization of syndication contracts		125		174		374		526
Payments on syndication contracts		(192)		(156)		(419)		(516)
Equity in net (income) loss of nonconsolidated affiliate		31		79		189		177
Non-cash stock-based compensation		819		1,286		2,454		3,711
(Gain) loss on disposal of property and equipment		(3)		–		158		–
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		1,084		(592)		10,703		8,578
(Increase) decrease in prepaid expenses and other assets		(3,524)		(663)		(844)		(7,210)
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(1,267)		(2,059)		(13,568)		(2,839)
Net cash provided by operating activities		3,816		5,581		23,486		22,497
Cash flows from investing activities:
Proceeds from sale of property and equipment and intangibles		–		–		–		33
Purchases of property and equipment		(7,200)		(6,567)		(21,182)		(12,277)
Purchases of intangible assets		–		–		–		(3,153)
Purchase of a businesses, net of cash acquired		–		41		–		(3,522)
Purchases of marketable securities		(240)		–		(1,400)		(159,403)
Proceeds from marketable securities		6,200		–		27,881		25,000
Purchases of investments		–		(935)		(300)		(970)
Deposits on acquisition		(147)		–		(147)		–
Net cash provided by (used in) investing activities		(1,387)		(7,461)		4,852		(154,292)
Cash flows from financing activities:
Proceeds from stock option exercises		–		(29)		–		77
Tax payments related to shares withheld for share-based compensation plans		(22)		–		(773)		(2,239)
Payments on long-term debt		(750)		(750)		(2,250)		(2,250)
Dividends paid		(4,227)		(4,443)		(12,767)		(13,403)
Repurchase of Class A common stock		(1,349)		–		(10,357)		(7,660)
Payment of contingent consideration		–		–		–		(2,015)
Payments of capitalized debt costs		–		–		(225)		–
Net cash used in financing activities		(6,348)		(5,222)		(26,372)		(27,490)
Effect of exchange rates on cash, cash equivalents and restricted cash		(5)		(1)		8		(11)
Net increase (decrease) in cash, cash equivalents and restricted cash		(3,924)		(7,103)		1,974		(159,296)
Cash, cash equivalents and restricted cash:
Beginning		53,363		109,661		47,465		261,854
Ending	$	49,439	$	102,558	$	49,439	$	102,558

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

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

	Three-Month Period				Nine-Month Period
	Ended September 30,				Ended September 30,
		2019		2018		2019		2018

Consolidated adjusted EBITDA (1)	$	9,142	$	11,299	$	29,778	$	33,102

Interest expense		(3,537)		(3,995)		(10,581)		(11,394)
Interest income		825		933		2,601		2,885
Dividend income		241		457		747		1,002
Income tax expense		(5,920)		(1,443)		(9,265)		(3,164)
Equity in net loss of nonconsolidated affiliates		(31)		(79)		(189)		(177)
Amortization of syndication contracts		(125)		(174)		(374)		(526)
Payments on syndication contracts		192		156		419		516
Non-cash stock-based compensation included in direct operating expenses		(74)		(156)		(324)		(448)
Non-cash stock-based compensation included in corporate expenses		(745)		(1,130)		(2,130)		(3,263)
Depreciation and amortization		(4,190)		(4,094)		(12,412)		(12,052)
Change in fair value contingent consideration		–		114		2,376		(1,073)
Impairment charge		(9,075)		–		(31,443)
Non-recurring cash severance charge		(492)		–		(1,440)		(782)
Other operating gain (loss)		1,572		327		5,165		622
Net income (loss)		(12,217)		2,215		(27,072)		5,248

Depreciation and amortization		4,190		4,094		12,412		12,052
Impairment charge		9,075		–		31,443		–
Deferred income taxes		5,469		913		6,941		1,942
Non-cash interest		226		290		715		828
Amortization of syndication contracts		125		174		374		526
Payments on syndication contracts		(192)		(156)		(419)		(516)
Equity in net (income) loss of nonconsolidated affiliate		31		79		189		177
Non-cash stock-based compensation		819		1,286		2,454		3,711
(Gain) loss on disposal of property and equipment		(3)		–		158		–
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		1,084		(592)		10,703		8,578
(Increase) decrease in prepaid expenses and other assets		(3,524)		(663)		(844)		(7,210)
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(1,267)		(2,059)		(13,568)		(2,839)
Cash flows from operating activities		3,816		5,581		23,486		22,497

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

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

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

	Three-Month Period				Nine-Month Period
	Ended September 30,				Ended September 30,
		2019		2018		2019		2018
Consolidated adjusted EBITDA (1)	$	9,142	$	11,299	$	29,778	$	33,102
Net interest expense (1)		(2,486)		(2,772)		(7,265)		(7,681)
Dividend income		241		457		747		1,002
Cash paid for income taxes		(451)		(530)		(2,324)		(1,222)
Capital expenditures (2)		(7,200)		(6,567)		(21,182)		(12,277)
Non-recurring cash severance charge		(492)		–		(1,440)		(782)
FCC Reimbursement		1,572		327		5,165		622
Free cash flow (1)		326		2,214		3,479		12,764

Capital expenditures (2)		7,200		6,567		21,182		12,277
Change in fair value of contingent consideration		–		114		2,376		(1,073)
(Gain) loss on disposal of property and equipment		(3)		–		158		–
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		1,084		(592)		10,703		8,578
(Increase) decrease in prepaid expenses and other assets		(3,524)		(663)		(844)		(7,210)
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(1,267)		(2,059)		(13,568)		(2,839)
Cash Flows From Operating Activities	$	3,816	$	5,581	$	23,486	$	22,497

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

View original content:http://www.prnewswire.com/news-releases/entravision-communications-corporation-reports-third-quarter-2019-results-300954320.html

SOURCE Entravision Communications Corporation

November 7, 2019

Category: Financials & Governance