Smadex - testsite

Entravision Appoints Stephen Chung as Chief Revenue Officer for Its International Digital Business

SANTA MONICA, Calif.–(BUSINESS WIRE)–
Entravision (NYSE: EVC), a leading global media, marketing and advertising technology company, announced the appointment ofStephen Chung as Chief Revenue Officer (CRO) for its International Digital business unit. Reporting to the President of Entravision’s International Digital, Luis Barrague, Mr. Chung will oversee growth of global programmatic and performance business sales, team development and service quality.

Entravision’s Digital business unit provides advertising solutions for brands and marketing agencies, including its awarded mobile-DSP Smadex, used by more than 300 advertisers in the gaming, entertainment and e-commerce industries in the United States, Asia, Europe, Middle East and Latin American markets.

Based in Los Angeles, Mr. Chung joins Entravision after 10 years in leadership roles in the Asian-Pacific market, where he established the company builder Rocket Internet in Hong Kong and served as Managing Director for the regional office of the German app marketing company Applift in Seoul, South Korea.

“I’m thrilled to join Entravision and help extend the company’s global market position,” said Mr. Chung. “I firmly believe in Entravision’s service offering and its ability to provide results thanks to its focus on media buying backed by data science and machine learning technology.”

“Stephen’s entrepreneurial spirit, leadership ability in multinational sales organizations and solid experience with the programmatic and performance space is a perfect match for our product and technology team and capabilities,” said Mr. Barrague. “We look forward to his contribution and input as we continue to scale the company.”

ABOUT ENTRAVISION

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 entravision.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20200714005221/en/

Media contact

Dario Diament
Entravision Communications Corporation
info@entravision.com

T (310) 447 3870

Source: Entravision

July 14, 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.

View original content:http://www.prnewswire.com/news-releases/entravision-communications-corporation-reports-first-quarter-2020-results-301055174.html

SOURCE Entravision Communications Corporation

May 7, 2020

Entravision Announces Launch of Entravision Digital

SANTA MONICA, Calif., May 5, 2020 /PRNewswire/ — Entravision Communications Corporation, (NYSE: EVC), a leading global media and marketing technology company that engages consumers, announced today the launch of Entravision Digital, which consolidates its digital reach, data, creative and programmatic capabilities into a unified solutions offering. Entravision Digital unites the performance and branding capabilities of its technology platforms, providing a full-funnel marketing stack that empowers both U.S. and global brands and apps to optimize their marketing operations and drive business results.

“By combining our comprehensive digital capabilities into Entravision Digital, advertisers and agencies have a single source to access a rich combination of audiences, media, performance solutions, and consumer insights,” said Walter F. Ulloa, Chairman and Chief Executive Officer of Entravision. “Entravision Digital has a global reach and is an exceptional complement to our television, radio and digital media assets serving the U.S. Hispanic market. We are excited to extend the Entravision brand to these businesses and look forward to continued success in the media technology marketplace.”

“Our digital solutions have been very successful in connecting content and technology with targeted audiences, benefiting app marketers and multicultural advertisers,” said Luis Barragué, President of Entravision Digital. “We believe we have created a unique and comprehensive digital offering and will continue to evaluate potential acquisitions that would accelerate growth and complement our culture and mission.”

Entravision Digital includes Entravision’s Smadex’s programmatic mobile-first DSP solution; AudioEngage, its audio advertising platform; ScrollerAds, its optimized video advertising marketplace; Dataxpand, its international data management platform and audience marketplace with consumer insights; and its U.S. Hispanic marketing solutions for SME (small and medium enterprises) and national advertisers.

About Entravision Digital

Entravision Digital is the media technology business unit of Entravision Communications [NYSE: EVC], providing a comprehensive offering of digital media and technology solutions that empower marketers to reach consumers in every screen and on every format. Entravision Digital’s global reach, rich data, innovative creative and comprehensive programmatic solutions adapt to each marketing need. Entravision Digital offers solutions capabilities that provide insights and data-based solutions with machine learning technologies built for performance; digital media capabilities with impactful consumer reach, powered by differentiated creativity, content and influencers; and unique platforms that deliver results-oriented solutions with a strong focus on customer care and long-term business development. Entravision Digital has approximately 50 offices around the world including Los Angeles, Mexico City, Barcelona, Tel Aviv, Seoul and Sao Paulo, serving 300 different markets with its digital solutions.

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.

View original content:http://www.prnewswire.com/news-releases/entravision-announces-launch-of-entravision-digital-301052590.html

SOURCE Entravision Communications Corporation

May 5, 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.

View original content:http://www.prnewswire.com/news-releases/entravision-communications-corporation-reports-fourth-quarter-and-full-year-2019-results-301018623.html

SOURCE Entravision Communications Corporation

March 5, 2020

Headway Elevates Luis Barrague to Chief Executive Officer

SANTA MONICA, Calif., June 18, 2019 /PRNewswire/ — Headway, a leading global data-driven growth marketing company servicing mobile apps, brands and ad-tech companies, and a business unit of Entravision Communications Corporation (NYSE: EVC), announced the appointment of Luis Barrague as Headway’s new Chief Executive Officer.

Mr. Barrague is an accomplished executive and digital marketing leader who joined Headway in 2013. As Headway’s Chief Operating Officer, Mr. Barrague has led the company’s global operations, including its technology and product initiatives, and also the company’s acquisition of Smadex, a company specialized in campaign optimization for branding and performance through a mobile platform DSP.

“Headway is an exceptional, data-driven solutions provider, committed to transparency and backed by talented professionals dedicated to driving results and growing the businesses of our over 500 monthly active international clients,” said Luis Barrague, Chief Executive Officer of Headway. “I look forward to my new role and I’m excited for the opportunities ahead as we continue to connect our clients with engaged audiences, grow their businesses, and build lasting partnerships.”

“Headway and our digital businesses are an important part of Entravision. Luis has provided crucial leadership in many key initiatives and I am excited for the future of Headway under his leadership,” said Walter F. Ulloa, Chairman and Chief Executive Officer of Entravision.

About Headway
Headway is a leading data-driven growth marketing company servicing mobile apps, brands, and ad-tech companies worldwide. Headway’s mobile-first DSP, Smadex, integrates with state-of-the-art partner platforms to offer brands seamless data-driven digital solutions. With a focus on rapid innovation, cutting-edge technology and strong multi-channel operations, Headway provides optimized and targeted ad campaigns, empowered by machine learning, and guided by experienced growth experts. Headway is a business unit of Entravision Communications Corporation (NYSE: EVC), a diversified global media, data and technology services company. For more information, visit www.headwaydigital.com or email info@headwaydigital.com.

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

View original content:http://www.prnewswire.com/news-releases/headway-elevates-luis-barrague-to-chief-executive-officer-300869961.html

SOURCE Entravision and Headway

June 18, 2019

Entravision Communications Corporation Reports Fourth Quarter And Full Year 2018 Results

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

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

	Three Months Ended							Twelve Months Ended
	December 31,							December 31,
	2018		2017		% Change			2018		2017		% Change
Net revenue:
Revenue from advertising and retransmission consent	$	80,906	$	73,460		10	%	$	294,839	$	272,091		8	%
Revenue from spectrum usage rights		1,167		–	*				2,976		263,943		(99)	%
	$	82,073	$	73,460		12	%	$	297,815	$	536,034		(44)	%

Cost of revenue – television (spectrum usage rights) (1)		–		209	*				–		12,340	*
Cost of revenue – digital media (1)		9,847		12,090		(19)	%		45,096		32,998		37	%
Operating expenses (2)		44,568		45,118		(1)	%		176,777		168,399		5	%
Corporate expenses (3)		7,711		8,242		(6)	%		26,865		27,937		(4)	%
Foreign currency (gain) loss		1,085		57		1804	%		1,616		350		362	%

Consolidated adjusted EBITDA (4)		20,936		10,891		92	%		54,038		50,608		7	%

Free cash flow (5)	$	12,237	$	5,855		109	%	$	25,001	$	287,088		(91)	%

Net income	$	6,913	$	12,740		(46)	%	$	12,161	$	175,698		(93)	%

Net income per share, basic	$	0.08	$	0.14		(43)	%	$	0.14	$	1.95		(93)	%
Net income per share, diluted	$	0.08	$	0.14		(43)	%	$	0.13	$	1.91		(93)	%

Weighted average common shares outstanding, basic		88,357,076		89,980,200					89,115,997		90,272,257
Weighted average common shares outstanding, diluted		89,598,683		91,613,199					90,328,583		91,891,957

(1) Cost of revenue – digital media consists primarily of the costs of online media acquired from third-party publishers. Media cost is classified as cost of revenue in the period in which the corresponding revenue is recognized. Cost of revenue – television (spectrum usage rights) consists primarily of the carrying value of spectrum usage rights surrendered in the Federal Communications Commission (“FCC”) auction for broadcast spectrum.
(2) For purposes of presentation in this table, the operating expenses line item includes direct operating and selling, general and administrative expenses. Included in operating expenses are $0.3 million and $0.4 million of non-cash stock-based compensation for the three-month periods ended December 31, 2018 and 2017, respectively, and $0.7 million and $1.2 million of non-cash stock-based compensation for the twelve month periods ended December 31, 2018 and 2017, respectively. Also for purposes of presentation in this table, the operating expenses line item does not include corporate expenses, foreign currency (gain) loss, depreciation and amortization, impairment charge, gain (loss) on sale of assets, gain (loss) on debt extinguishment, other income (loss) and change in fair value of contingent consideration.
(3) Corporate expenses include $1.8 million and $2.5 million of non-cash stock-based compensation for the three-month periods ended December 31, 2018 and 2017, respectively, and $5.1 million and $4.9 million of non-cash stock-based compensation for the twelve-month periods ended December 31, 2018 and 2017, respectively.
(4) Consolidated adjusted EBITDA means net income (loss) plus gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation included in operating and corporate expenses, net interest expense, other income (loss), non-recurring cash expenses, gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from FCC spectrum incentive auction less related expenses, expenses associated with investments, acquisitions and dispositions and certain pro-forma cost savings. We use the term consolidated adjusted EBITDA because that measure is defined in the agreement governing our current credit facility (“the 2017 Credit Facility”) and does not include gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation, net interest expense, other income (loss), non-recurring cash expenses, gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from FCC spectrum incentive auction less related expenses, expenses associated with investments, acquisitions and dispositions and certain pro forma cost savings.
(5) Free cash flow is defined as consolidated adjusted EBITDA less cash paid for income taxes, net interest expense, capital expenditures and non-recurring cash expenses plus dividend income, FCC reimbursement for broadcast television repack and revenue from FCC auction for broadcast spectrum less related cash expenses. Net interest expense is defined as interest expense, less non-cash interest expense relating to amortization of debt finance costs, and less interest income.

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

Quarterly Cash Dividend

The Company announced today that its Board of Directors has approved a quarterly cash dividend to shareholders of $0.05 per share of the Company’s Class A, Class B and Class U common stock, in an aggregate amount of approximately $4.3 million. The quarterly dividend will be payable on June 28, 2019 to shareholders of record as of the close of business on June 14, 2019, and the common stock will trade ex-dividend on June 13, 2019. As previously announced, the Company currently anticipates that future cash dividends will be paid on a quarterly basis; however, any decision to pay future cash dividends will be subject to approval by the Board.

Form 10-K Filed Today

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

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

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

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

Financial Results

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

	Three Months Ended
	December 31,
	2018		2017		% Change
Net, revenue from advertising and retransmission consent	$	80,906	$	73,460		10	%
Revenue from spectrum usage rights		1,167		–	*
Total net revenue		82,073		73,460		12	%

Cost of revenue – television (spectrum usage rights) (1)		–		209	*
Cost of revenue – digital media (1)		9,847		12,090		(19)	%
Operating expenses (1)		44,568		45,118		(1)	%
Corporate expenses (1)		7,711		8,242		(6)	%
Depreciation and amortization		4,221		3,951		7	%
Change in fair value of contingent consideration		(2,275)		–	*
Foreign currency (gain) loss		1,085		57		1804	%
Other operating (gain) loss		(565)		(262)		116	%

Operating income		17,481		4,055		331	%
Interest expense, net		(3,261)		(5,326)		(39)	%
Dividend income		473		–	*
Gain (loss) on debt extinguishment		(550)		(3,306)		(83)	%
Impairment loss on investment		(1,320)		–	*

Income before income taxes		12,823		(4,577)	*
Income tax (expense) benefit		(4,713)		17,452	*

Net income (loss) before equity in net income (loss) of nonconsolidated affiliates		8,110		12,875		(37)	%
Equity in net income (loss) of nonconsolidated affiliates		(1,197)		(135)		787	%
Net income	$	6,913	$	12,740		(46)	%

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

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

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

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

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

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

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

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

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

	Twelve Months Ended
	December 31,
	2018		2017		% Change
Net revenue:
Revenue from advertising and retransmission consent	$	294,839	$	272,091		8	%
Revenue from spectrum usage rights		2,976		263,943		(99)	%
Total net revenue		297,815		536,034		(44)	%

Cost of revenue – television (spectrum usage rights) (1)		–		12,340	*
Cost of revenue – digital media (1)		45,096		32,998		37	%
Operating expenses (1)		176,777		168,399		5	%
Corporate expenses (1)		26,865		27,937		(4)	%
Depreciation and amortization		16,273		16,411		(1)	%
Change in fair value of contingent consideration		(1,202)		–	*
Foreign currency (gain) loss		1,616		350		362	%
Other operating (gain) loss		(1,187)		(262)		353	%

Operating income		33,577		277,861		(88)	%
Interest expense, net		(11,770)		(15,935)		(26)	%
Dividend income		1,475		–	*
Gain (loss) on debt extinguishment		(550)		(3,306)		(83)	%
Impairment loss on investment		(1,320)		–	*

Income before income taxes		21,412		258,620		(92)	%
Income tax (expense) benefit		(7,877)		(82,612)		(90)	%

Net income (loss) before equity in net income (loss) of nonconsolidated affiliates		13,535		176,008		(92)	%
Equity in net income (loss) of nonconsolidated affiliates		(1,374)		(310)		343	%

Net income	$	12,161	$	175,698		(93)	%

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

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

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

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

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

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

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

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

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

Segment Results

The following represents selected unaudited segment information:

	Three Months Ended							Twelve Months Ended
	December 31,							December 31,
	2018		2017		% Change			2018		2017		% Change
Net Revenue
Revenue from advertising and retransmission consent
Television	$	44,361	$	36,038		23	%	$	149,935	$	148,059		1	%
Radio		16,796		17,118		(2)	%		63,922		66,934		(4)	%
Digital		19,749		20,304		(3)	%		80,982		57,098		42	%
Total	$	80,906	$	73,460		10	%	$	294,839	$	272,091		8	%

Revenue from spectrum usage rights (television)	$	1,167	$	–	*			$	2,976	$	263,943		(99)	%

Total Net Revenue	$	82,073	$	73,460		12	%	$	297,815	$	536,034		(44)	%

Cost of Revenue (1)
Television		–		209	*				–		12,340	*
Digital		9,847		12,090		(19)	%		45,096		32,998		37	%
Total	$	9,847	$	12,299		(20)	%	$	45,096	$	45,338		(1)	%

Operating Expenses (1)
Television		21,725		21,214		2	%		84,298		81,730		3	%
Radio		13,975		16,021		(13)	%		59,368		63,315		(6)	%
Digital		8,868		7,883		12	%		33,111		23,354		42	%
Total	$	44,568	$	45,118		(1)	%	$	176,777	$	168,399		5	%

Corporate Expenses (1)	$	7,711	$	8,242		(6)	%	$	26,865	$	27,937		(4)	%

Foreign currency (gain) loss	$	1,085	$	57		1804	%	$	1,616	$	350		362	%

Consolidated adjusted EBITDA (1)	$	20,936	$	10,891		92	%	$	54,038	$	50,608		7	%

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

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

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

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

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

	December 31,		December 31,
	2018		2017
ASSETS
Current assets
Cash and cash equivalents	$	46,733	$	39,560
Marketable securities		132,424		–
Restricted Cash		732		222,294
Trade receivables, net of allowance for doubtful accounts		79,308		84,348
Assets held for sale		1,179		–
Prepaid expenses and other current assets		10,672		6,260
Total current assets		271,048		352,462
Property and equipment, net		64,939		60,337
Intangible assets subject to amortization, net		22,598		26,758
Intangible assets not subject to amortization		254,598		251,163
Goodwill		74,292		70,729
Other assets		2,934		4,690
Total assets	$	690,409	$	766,139


LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Current maturities of long-term debt	$	3,000	$	3,000
Accounts payable and accrued expenses		51,034		61,847
Total current liabilities		54,034		64,847
Long-term debt, less current maturities, net of unamortized debt issuance costs		240,541		292,489
Other long-term liabilities		16,418		19,889
Deferred income taxes		46,684		40,639
Total liabilities		357,677		417,864

Stockholders’ equity
Class A common stock		6		7
Class B common stock		2		2
Class U common stock		1		1
Additional paid-in capital		862,299		888,650
Accumulated deficit		(528,164)		(540,325)
Accumulated other comprehensive income (loss)		(1,412)		(60)
Total stockholders’ equity		332,732		348,275
Total liabilities and stockholders’ equity	$	690,409	$	766,139

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

	Three-Month Period				Twelve-Month Period
	Ended December 31,				Ended December 31,
	2018		2017		2018		2017
Net revenue
Revenue from advertising and retransmission consent	$	80,906	$	73,460	$	294,839	$	272,091
Revenue from spectrum usage rights		1,167		–		2,976		263,943
		82,073		73,460		297,815		536,034
Expenses:
Cost of revenue – television (spectrum usage rights)		–		209		–		12,340
Cost of revenue – digital media		9,847		12,090		45,096		32,998
Direct operating expenses		31,398		32,045		125,242		119,283
Selling, general and administrative expenses		13,170		13,073		51,535		49,116
Corporate expenses		7,711		8,242		26,865		27,937
Depreciation and amortization		4,221		3,951		16,273		16,411
Change in fair value of contingent consideration		(2,275)		–		(1,202)		–
Foreign currency (gain) loss		1,085		57		1,616		350
Other operating (gain) loss		(565)		(262)		(1,187)		(262)
		64,592		69,405		264,238		258,173
Operating income		17,481		4,055		33,577		277,861
Interest expense		(4,349)		(5,625)		(15,743)		(16,709)
Interest income		1,088		299		3,973		774
Dividend income		473		–		1,475		–
Gain (loss) on debt extinguishment		(550)		(3,306)		(550)		(3,306)
Impairment loss on investment		(1,320)		–		(1,320)		–
Income before income taxes		12,823		(4,577)		21,412		258,620
Income tax (expense) benefit		(4,713)		17,452		(7,877)		(82,612)

Income (loss) before equity in net income (loss) of nonconsolidated affiliate		8,110		12,875		13,535		176,008
Equity in net income (loss) of nonconsolidated affiliate		(1,197)		(135)		(1,374)		(310)
Net income	$	6,913	$	12,740	$	12,161	$	175,698

Basic and diluted earnings per share:
Net income per share, basic	$	0.08	$	0.14	$	0.14	$	1.95
Net income per share, diluted	$	0.08	$	0.14	$	0.13	$	1.91

Cash dividends declared per common share, basic	$	0.05	$	0.05	$	0.20	$	0.16
Cash dividends declared per common share, diluted	$	0.05	$	0.05	$	0.20	$	0.16

Weighted average common shares outstanding, basic		88,357,076		89,980,200		89,115,997		90,272,257
Weighted average common shares outstanding, diluted		89,598,683		91,613,199		90,328,583		91,891,957

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

	Three-Month Period				Twelve-Month Period
	Ended December 31,				Ended December 31,
	2018		2017		2018		2017
Cash flows from operating activities:
Net income	$	6,913	$	12,740	$	12,161	$	175,698
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		4,221		3,951		16,273		16,411
Cost of revenue – television (spectrum usage rights)		–		209		–		12,340
Impairment loss on investment		1,320		–		1,320		–
Deferred income taxes		2,670		(17,627)		4,612		81,766
Non-cash interest		296		2,642		1,124		3,237
Amortization of syndication contracts		125		141		651		452
Payments on syndication contracts		(127)		(145)		(643)		(445)
Equity in net (income) loss of nonconsolidated affiliate		1,197		135		1,374		310
Non-cash stock-based compensation		2,076		2,942		5,787		6,091
(Gain) loss on sale of property		–		28		–		28
(Gain) loss on debt extinguishment		550		3,306		550		3,306
Changes in assets and liabilities:
(Increase) decrease in trade receivables, net		(2,683)		(12,376)		5,895		414
(Increase) decrease in prepaid expenses and other current assets		1,629		917		(5,581)		(913)
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(6,888)		11,203		(9,727)		2,825
Net cash provided by operating activities		11,299		8,066		33,796		301,520
Cash flows from investing activities:
Proceeds from sale of property and equipment and intangibles		–		50		33		50
Purchases of property and equipment		(4,729)		(2,439)		(17,006)		(12,078)
Purchases of intangibles		–		–		(3,153)		(32,588)
Purchase of a businesses, net of cash acquired		–		(21,660)		(3,522)		(29,149)
Purchases of marketable securities		–		–		(159,403)		–
Proceeds from marketable securities		–		–		25,000		–
Purchases of investments		(525)		(250)		(1,495)		(2,450)
Deposits on acquisition		–		1,050		–		(190)
Net cash used in investing activities		(5,254)		(23,249)		(159,546)		(76,405)
Cash flows from financing activities:
Proceeds from stock option exercises		172		697		249		708
Tax payments related to shares withheld for share-based compensation plans		(29)		(798)		(2,268)		(798)
Payments on long-term debt		(50,750)		(290,750)		(53,000)		(293,563)
Dividends paid		(4,379)		(4,491)		(17,782)		(14,670)
Repurchase of Class A common stock		(6,152)		(3,552)		(13,812)		(5,330)
Payment of contingent consideration		–		(3,819)		(2,015)		(3,819)
Termination of swap agreements		–		(2,441)		–		(2,441)
Proceeds from borrowings on long-term debt		–		298,500		–		298,500
Payments of capitalized debt offering and issuance costs		–		(3,382)		–		(3,382)
Net cash used in financing activities		(61,138)		(10,036)		(88,628)		(24,795)
Effect of exchange rates on cash, cash equivalents and restricted cash		–		(3)		(11)		14
Net increase (decrease) in cash and cash equivalents		(55,093)		(25,222)		(214,389)		200,334
Cash and cash equivalents:
Beginning		102,558		287,076		261,854		61,520
Ending	$	47,465	$	261,854	$	47,465	$	261,854

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

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

	Three-Month Period				Twelve-Month Period
	Ended December 31,				Ended December 31,
		2018		2017		2018		2017
Consolidated adjusted EBITDA (1)	$	20,936	$	10,891	$	54,038	$	50,608
Net revenue – FCC spectrum incentive auction		–		–		–		263,943
Expenses – FCC spectrum incentive auction		–		(209)		–		(14,443)
Interest expense		(4,349)		(5,625)		(15,743)		(16,709)
Interest income		1,088		299		3,973		774
Gain (loss) on debt extinguishment		(550)		(3,306)		(550)		(3,306)
Income tax (expense) benefit		(4,713)		17,452		(7,877)		(82,612)
Amortization of syndication contracts		(125)		(141)		(651)		(452)
Payments on syndication contracts		127		145		643		445
Non-cash stock-based compensation included in direct operating
expenses		(284)		(430)		(732)		(1,236)
Non-cash stock-based compensation included in corporate expenses		(1,792)		(2,512)		(5,055)		(4,855)
Depreciation and amortization		(4,221)		(3,951)		(16,273)		(16,411)
Change in fair value of contingent consideration		2,275		–		1,202		–
Non-recurring severance charge		–		–		(782)		–
Dividend income		473		–		1,475		–
Other income (loss)		565		262		1,187		262
Impairment loss on investment		(1,320)		–		(1,320)		–
Equity in net income (loss) of nonconsolidated affiliates		(1,197)		(135)		(1,374)		(310)
Net income		6,913		12,740		12,161		175,698

Depreciation and amortization		4,221		3,951		16,273		16,411
Cost of revenue – television (spectrum usage rights)		–		209		–		12,340
Impairment loss on investment		1,320		–		1,320		–
Deferred income taxes		2,670		(17,627)		4,612		81,766
Amortization of debt issuance costs		296		2,642		1,124		3,237
Amortization of syndication contracts		125		141		651		452
Payments on syndication contracts		(127)		(145)		(643)		(445)
Equity in net (income) loss of nonconsolidated affiliate		1,197		135		1,374		310
Non-cash stock-based compensation		2,076		2,942		5,787		6,091
(Gain) loss on sale of property		–		28		–		28
(Gain) loss on debt extinguishment		550		3,306		550		3,306
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		(2,683)		(12,376)		5,895		414
(Increase) decrease in prepaid expenses and other assets		1,629		917		(5,581)		(913)
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(6,888)		11,203		(9,727)		2,825
Net cash provided by (used in ) operating activities	$	11,299	$	8,066	$	33,796	$	301,520

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

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

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

	Three-Month Period				Twelve-Month Period
	Ended December 31,				Ended December 31,
		2018		2017		2018		2017
Consolidated adjusted EBITDA (1)	$	20,936	$	10,891	$	54,038	$	50,608
Net, cash interest expense (1)		(2,965)		(2,685)		(10,646)		(12,698)
Dividend income		473		–		1,475		–
Cash paid for income taxes		(2,043)		(174)		(3,265)		(846)
Capital expenditures (2)		(4,729)		(2,439)		(17,006)		(12,078)
FCC reimbursement		565		262		1,187		262
Non-recurring cash severance charge		–		–		(782)		–
Net revenue – FCC spectrum incentive auction		–		–		–		263,943
Expenses – FCC spectrum incentive auction		–		–		–		(2,103)
Free cash flow (1)		12,237		5,855		25,001		287,088

Capital expenditures (2)		4,729		2,439		17,006		12,078
Change in fair value of contingent consideration		2,275		–		1,202		–
(Gain) loss on sale of property		–		28		–		28
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		(2,683)		(12,376)		5,895		414
(Increase) decrease in prepaid expenses and other assets		1,629		917		(5,581)		(913)
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(6,888)		11,203		(9,727)		2,825
Cash Flows From Operating Activities	$	11,299	$	8,066	$	33,796	$	301,520

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

View original content:http://www.prnewswire.com/news-releases/entravision-communications-corporation-reports-fourth-quarter-and-full-year-2018-results-300845151.html

SOURCE Entravision Communications Corporation

May 7, 2019

Entravision’s Mobile-First DSP, Smadex, Ranks #2 for Quality in Kochava Traffic Index

SANTA MONICA, Calif., Feb. 19, 2019 /PRNewswire/ — Entravision Communications Corporation (NYSE: EVC), a diversified global media and advertising technology company serving Latino consumers, today announced that Smadex, the mobile-first DSP (demand-side platform) that is part of its Headway business unit, was ranked #2 for quality in the latest Kochava Traffic Index.

Smadex was the newest addition to the Top 20 Traffic Index, and was recognized specifically for its excellent high-value user acquisition and long-term retention, scoring an A in traffic quality and ranking 2nd. It also ranked in the top five in the specific app categories of education, books and references, and sports.

“Kochava is the gold standard for the industry and this achievement is a direct reflection of our Smadex and Headway teams,” said Walter F. Ulloa, Chairman and Chief Executive Officer of Entravision. “Across our digital offering we are committed to providing the highest quality digital advertising campaigns. Smadax has a proven technology platform, is building trust with advertising partners and is a key part of the digital marketing and data services we provide.”

This recognition follows on the heels of Smadex’s recent selection as one of the Top 10 most innovative machine learning companies. These recognitions reflect the efforts of the Smadex and Headway teams, who have built a leading mobile-first DSP, with a constant focus on improvement and innovation.

Kochava is an objective mobile measurement platform, and the Kochava Traffic Index is one of the principal media partner comparison resources for marketers and advertisers. As the digital advertising industry has grown to include thousands of traffic partners, and experienced many difficulties combating fraud and issues associated with a lack of transparency, Kochava’s quarterly analysis of the billions of transactions processed by mobile measurement platforms makes it possible to compare media partners based on their performance. The index takes into consideration the following metrics: signal clarity, fraud, traffic quality, and the ratio of clicks to installs.

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

View original content:http://www.prnewswire.com/news-releases/entravisions-mobile-first-dsp-smadex-ranks-2-for-quality-in-kochava-traffic-index-300797049.html

SOURCE Entravision Communications Corporation

February 19, 2019

Entravision Communications Corporation Reports Third Quarter 2018 Results

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

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

	Three-Month Period							Nine-Month Period
	Ended September 30,							Ended September 30,
	2018		2017		% Change			2018		2017		% Change
Net revenue:
Revenue from advertising and retransmission consent	$	73,397	$	70,612		4	%	$	213,933	$	198,631		8	%
Revenue from spectrum usage rights		1,178		263,943		(100)	%		1,809		263,943		(99)	%
Total net revenue		74,575		334,555		(78)	%		215,742		462,574		(53)	%

Cost of revenue – television (spectrum usage rights) (1)		–		12,131		(100)	%		–		12,131		(100)	%
Cost of revenue – digital media (1)		13,240		9,910		34	%		35,249		20,424		73	%
Operating expenses (2)		44,092		43,044		2	%		132,209		123,281		7	%
Corporate expenses (3)		6,913		8,209		(16)	%		19,154		19,695		(3)	%

Consolidated adjusted EBITDA (4)		11,299		12,707		(11)	%		33,102		40,201		(18)	%

Free cash flow (5)	$	1,887	$	268,849		(99)	%	$	12,142	$	281,717		(96)	%

Net income (loss)	$	2,215	$	157,208		(99)	%	$	5,248	$	163,321		(97)	%

Net income (loss) per share, basic	$	0.02	$	1.74		(99)	%	$	0.06	$	1.81		(97)	%
Net income (loss) per share, diluted	$	0.02	$	1.71		(99)	%	$	0.06	$	1.78		(97)	%

Weighted average common shares outstanding, basic		88,852,342		90,517,492					89,371,750		90,370,679
Weighted average common shares outstanding, diluted		90,122,425		92,161,108					90,574,663		91,985,946


(1)	Cost of revenue – digital media consists primarily of the costs of online media acquired from third-party publishers. Media cost is classified as cost of revenue in the period in which the corresponding revenue is recognized. Cost of revenue – television (spectrum usage rights) consists primarily of the carrying value of spectrum usage rights surrendered in the FCC auction for broadcast spectrum.
(2)	Operating expenses include direct operating and selling, general and administrative expenses. Included in operating expenses are $0.2 million and $0.3 million of non-cash stock-based compensation for the three-month periods ended September 30, 2018 and 2017, respectively, and $0.4 million and $0.8 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2018 and 2017, respectively. Operating expenses do not include corporate expenses, foreign currency (gain) loss, depreciation and amortization, impairment charge, gain (loss) on sale of assets, gain (loss) on debt extinguishment, other income (loss) and change in fair value of contingent consideration.
(3)	Corporate expenses include $1.1 million and $0.8 million of non-cash stock-based compensation for the three-month periods ended September 30, 2018 and 2017, respectively, and $3.3 million and $2.3 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2018 and 2017, respectively.
(4)	Consolidated adjusted EBITDA means net income (loss) plus gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation included in operating and corporate expenses, net interest expense, other income (loss), non-recurring cash expenses, gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from FCC spectrum incentive auction less related expenses, expenses associated with investments, acquisitions and dispositions and certain pro-forma cost savings. We use the term consolidated adjusted EBITDA because that measure is defined in the agreement governing our current credit facility (“the 2017 Credit Facility”) and does not include gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation, net interest expense, other income (loss), non-recurring cash expenses, gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from FCC spectrum incentive auction less related expenses, expenses associated with investments, acquisitions and dispositions and certain pro-forma cost savings.
(5)	Free cash flow is defined as consolidated adjusted EBITDA less cash paid for income taxes, net interest expense, capital expenditures, and non-recurring cash expenses plus dividend income and revenue from FCC spectrum incentive auction less related cash expenses. Net interest expense is defined as interest expense, less non-cash interest expense relating to amortization of debt finance costs, and less interest income.

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

Quarterly Cash Dividend

The Company announced today that its Board of Directors has approved a quarterly cash dividend to shareholders of $0.05 per share of the Company’s Class A, Class B and Class U common stock, in an aggregate amount of approximately $4.5 million. The quarterly dividend will be payable on December 31, 2018 to shareholders of record as of the close of business on December 14, 2018, and the common stock will trade ex-dividend on December 13, 2018. As previously announced, the Company currently anticipates that future cash dividends will be paid on a quarterly basis; however, any decision to pay future cash dividends will be subject to approval by the Board.

Financial Results

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

	Three-Month Period
	Ended September 30,
	2018		2017		% Change
Net revenue:
Revenue from advertising and retransmission consent	$	73,397	$	70,612		4	%
Revenue from spectrum usage rights		1,178		263,943		(100)	%
Total net revenue		74,575		334,555		(78)	%

Cost of revenue – television (spectrum usage rights) (1)		–		12,131		(100)	%
Cost of revenue – digital media (1)		13,240		9,910		34	%
Operating expenses (1)		44,092		43,044		2	%
Corporate expenses (1)		6,913		8,209		(16)	%
Depreciation and amortization		4,094		4,337		(6)	%
Change in fair value of contingent consideration		(114)		–	*
Foreign currency (gain) loss		335		(58)	*

Operating income (loss)		6,015		256,982		(98)	%
Interest expense, net		(3,062)		(3,500)		(13)	%
Dividend income		457		–	*
Other income (loss)		327		–	*

Income (loss) before income taxes		3,737		253,482		(99)	%

Income tax benefit (expense)		(1,443)		(96,167)		(98)	%
Net income (loss) before equity in net income (loss) of nonconsolidated affiliates		2,294		157,315		(99)	%

Equity in net income (loss) of nonconsolidated affiliates, net of tax		(79)		(107)		(26)	%

Net income (loss)	$	2,215	$	157,208		(99)	%

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

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

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

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

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

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

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

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

	Nine-Month Period
	Ended September 30,
	2018		2017		% Change
Net revenue:
Revenue from advertising and retransmission consent	$	213,933	$	198,631		8	%
Revenue from spectrum usage rights		1,809		263,943		(99)	%
Total net revenue		215,742		462,574		(53)	%

Cost of revenue – television (spectrum usage rights) (1)		–		12,131		(100)	%
Cost of revenue – digital media (1)		35,249		20,424		73	%
Operating expenses (1)		132,209		123,281		7	%
Corporate expenses (1)		19,154		19,695		(3)	%
Depreciation and amortization		12,052		12,460		(3)	%
Change in fair value of contingent consideration		1,073		–	*
Foreign currency (gain) loss		531		293		81	%

Operating income (loss)		15,474		274,290		(94)	%
Interest expense, net		(8,509)		(10,609)		(20)	%
Dividend income		1,002		–	*
Other income (loss)		622		–	*

Income (loss) before income taxes		8,589		263,681		(97)	%

Income tax benefit (expense)		(3,164)		(100,185)		(97)	%
Net income (loss) before equity in net income (loss) of nonconsolidated affiliates		5,425		163,496		(97)	%

Equity in net income (loss) of nonconsolidated affiliates, net of tax		(177)		(175)		1	%

Net income (loss)	$	5,248	$	163,321		(97)	%

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

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

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

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

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

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

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

Segment Results

The following represents selected unaudited segment information:

	Three-Month Period							Nine-Month Period
	Ended September 30,							Ended September 30,
		2018		2017	% Change				2018		2017	% Change
Net Revenue
Revenue from advertising and retransmission consent
Television	$	35,183	$	36,547		(4)	%	$	105,574	$	112,021		(6)	%
Radio		15,783		16,934		(7)	%		47,126		49,816		(5)	%
Digital		22,431		17,131		31	%		61,233		36,794		66	%
Total		73,397		70,612		4	%		213,933		198,631		8	%

Revenue from spectrum usage rights		1,178		263,943		(100)	%		1,809		263,943		(99)	%
Total net revenue		74,575		334,555		(78)	%		215,742		462,574		(53)	%

Cost of Revenue (1)
Television	$	–	$	12,131		(100)	%	$	–	$	12,131		(100)	%
Digital		13,240		9,910		34	%		35,249		20,424		73	%
Total	$	13,240	$	22,041		(40)	%	$	35,249	$	32,555		8	%

Operating Expenses (1)
Television		20,462		20,161		1	%		62,573		60,516		3	%
Radio		14,676		15,953		(8)	%		45,393		47,294		(4)	%
Digital		8,954		6,930		29	%		24,243		15,471		57	%
Total	$	44,092	$	43,044		2	%	$	132,209	$	123,281		7	%

Corporate Expenses (1)	$	6,913	$	8,209		(16)	%	$	19,154	$	19,695		(3)	%

Consolidated adjusted EBITDA (1)	$	11,299	$	12,707		(11)	%	$	33,102	$	40,201		(18)	%

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

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

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

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

(Financial Table Follows)

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

	September 30,		December 31,
	2018		2017


ASSETS
Current assets
Cash and cash equivalents	$	101,789	$	39,560
Marketable securities		132,410		–
Restricted cash		769		222,294
Trade receivables, net of allowance for doubtful accounts		78,092		84,348
Assets held for sale		1,179		–
Prepaid expenses and other current assets		13,217		6,260
Total current assets		327,456		352,462
Property and equipment, net		63,204		60,337
Intangible assets subject to amortization, net		24,196		26,758
Intangible assets not subject to amortization		254,506		251,163
Goodwill		74,149		70,557
Other assets		5,087		4,690
Total assets	$	748,598	$	765,967


LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Current maturities of long-term debt	$	3,000	$	3,000
Accounts payable and accrued expenses		52,795		57,563
Deferred revenue		4,351		1,959
Total current liabilities		60,146		62,522
Long-term debt, less current maturities, net of unamortized debt issuance costs		290,614		292,489
Other long-term liabilities		19,237		21,447
Deferred income taxes		43,172		40,639
Total liabilities		413,169		417,097

Stockholders’ equity
Class A common stock		6		7
Class B common stock		2		2
Class U common stock		1		1
Additional paid-in capital		871,321		888,650
Accumulated deficit		(534,482)		(539,730)
Accumulated other comprehensive income (loss)		(1,419)		(60)
Total stockholders’ equity		335,429		348,870
Total liabilities and stockholders’ equity	$	748,598	$	765,967

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

	Three-Month Period				Nine-Month Period
	Ended September 30,				Ended September 30,
	2018		2017		2018		2017
Net revenue:
Revenue from advertising and retransmission consent	$	73,397	$	70,612	$	213,933	$	198,631
Revenue from spectrum usage rights		1,178		263,943		1,809		263,943
Total net revenue		74,575		334,555		215,742		462,574

Expenses:
Cost of revenue – television (spectrum usage rights)		–		12,131		–		12,131
Cost of revenue – digital		13,240		9,910		35,249		20,424
Direct operating expenses		31,694		30,231		93,844		87,238
Selling, general and administrative expenses		12,398		12,813		38,365		36,043
Corporate expenses		6,913		8,209		19,154		19,695
Depreciation and amortization		4,094		4,337		12,052		12,460
Change in fair value of contingent consideration		(114)		–		1,073		–
Foreign currency (gain) loss		335		(58)		531		293
		68,560		77,573		200,268		188,284
Operating income (loss)		6,015		256,982		15,474		274,290
Interest expense		(3,995)		(3,756)		(11,394)		(11,084)
Interest income		933		256		2,885		475
Dividend income		457		–		1,002		–
Other income (loss)		327		–		622		–
Income (loss) before income taxes		3,737		253,482		8,589		263,681
Income tax benefit (expense)		(1,443)		(96,167)		(3,164)		(100,185)
Income (loss) before equity in net income (loss) of nonconsolidated affiliate		2,294		157,315		5,425		163,496
Equity in net income (loss) of nonconsolidated affiliate, net of tax		(79)		(107)		(177)		(175)
Net income (loss)	$	2,215	$	157,208	$	5,248	$	163,321

Basic and diluted earnings per share:
Net income per share, basic	$	0.02	$	1.74	$	0.06	$	1.81
Net income per share, diluted	$	0.02	$	1.71	$	0.06	$	1.78

Cash dividends declared per common share	$	0.05	$	0.05	$	0.15	$	0.11

Weighted average common shares outstanding, basic		88,852,342		90,517,492		89,371,750		90,370,679
Weighted average common shares outstanding, diluted		90,122,425		92,161,108		90,574,663		91,985,946

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

	Three-Month Period				Nine-Month Period
	Ended September 30,				Ended September 30,
	2018		2017		2018		2017
Cash flows from operating activities:
Net income (loss)	$	2,215	$	157,208	$	5,248	$	163,321
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		4,094		4,337		12,052		12,460
Cost of revenue – television (spectrum usage rights)		–		12,131		–		12,131
Deferred income taxes		913		96,086		1,942		99,514
Non-cash interest expense		290		226		828		595
Amortization of syndication contracts		174		93		526		311
Payments on syndication contracts		(156)		(85)		(516)		(300)
Equity in net (income) loss of nonconsolidated affiliate		79		107		177		175
Non-cash stock-based compensation		1,286		1,089		3,711		3,149
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		(592)		(791)		8,578		12,790
(Increase) decrease in prepaid expenses and other assets		(663)		(383)		(7,210)		(1,830)
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(2,059)		130		(2,839)		(8,862)
Net cash provided by (used in) operating activities		5,581		270,148		22,497		293,454
Cash flows from investing activities:
Proceeds from sale of property and equipment and intangible assets		–		–		33		–
Purchases of property and equipment		(6,567)		(2,343)		(12,277)		(9,639)
Purchases of intangible assets		–		(32,588)		(3,153)		(32,588)
Purchases of businesses, net of cash acquired		41		–		(3,522)		(7,489)
Purchases of marketable securities		–		–		(159,403)		–
Proceeds from marketable securities		–		–		25,000		–
Purchases of investments		(935)		–		(970)		(2,200)
Deposits on acquisitions		–		(1,050)		–		(1,240)
Net cash provided by (used in) investing activities		(7,461)		(35,981)		(154,292)		(53,156)
Cash flows from financing activities:
Proceeds from stock option exercises		(29)		(515)		77		11
Tax payments related to shares withheld for share-based compensation plans		–		–		(2,239)		–
Payments on long-term debt		(750)		(938)		(2,250)		(2,813)
Dividends paid		(4,443)		(4,532)		(13,403)		(10,179)
Repurchase of Class A common stock		–		(1,778)		(7,660)		(1,778)
Payment of contingent consideration		–		–		(2,015)		–
Net cash provided by (used in) financing activities		(5,222)		(7,763)		(27,490)		(14,759)
Effect of exchange rates on cash, cash equivalents and restricted cash		(1)		35		(11)		17
Net increase (decrease) in cash, cash equivalents and restricted cash		(7,103)		226,439		(159,296)		225,556
Cash, cash equivalents and restricted cash:
Beginning		109,661		60,637		261,854		61,520
Ending	$	102,558	$	287,076	$	102,558	$	287,076

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

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

	Three-Month Period				Nine-Month Period
	Ended September 30,				Ended September 30,
		2018		2017		2018		2017

Consolidated adjusted EBITDA (1)	$	11,299	$	12,707	$	33,102	$	40,201

Net revenue – FCC spectrum incentive auction		–		263,943		–		263,943
Expenses – FCC spectrum incentive auction		–		(14,234)		–		(14,234)
Interest expense		(3,995)		(3,756)		(11,394)		(11,084)
Interest income		933		256		2,885		475
Dividend income		457		–		1,002		–
Income tax benefit (expense)		(1,443)		(96,167)		(3,164)		(100,185)
Equity in net loss of nonconsolidated affiliates		(79)		(107)		(177)		(175)
Amortization of syndication contracts		(174)		(93)		(526)		(311)
Payments on syndication contracts		156		85		516		300
Non-cash stock-based compensation included in direct operating expenses		(156)		(276)		(448)		(806)
Non-cash stock-based compensation included in corporate expenses		(1,130)		(813)		(3,263)		(2,343)
Depreciation and amortization		(4,094)		(4,337)		(12,052)		(12,460)
Change in fair value of contingent consideration		114		–		(1,073)		–
Non-recurring cash severance charge		–		–		(782)		–
Other income (loss)		327		–		622		–
Net income (loss)		2,215		157,208		5,248		163,321


Depreciation and amortization		4,094		4,337		12,052		12,460
Cost of revenue – television (spectrum usage rights)		–		12,131		–		12,131
Deferred income taxes		913		96,086		1,942		99,514
Non-cash interest expense		290		226		828		595
Amortization of syndication contracts		174		93		526		311
Payments on syndication contracts		(156)		(85)		(516)		(300)
Equity in net (income) loss of nonconsolidated affiliate		79		107		177		175
Non-cash stock-based compensation		1,286		1,089		3,711		3,149
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		(592)		(791)		8,578		12,790
(Increase) decrease in prepaid expenses and other assets		(663)		(383)		(7,210)		(1,830)
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(2,059)		130		(2,839)		(8,862)
Cash flows from operating activities		5,581		270,148		22,497		293,454

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

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

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

	Three-Month Period				Nine-Month Period
	Ended September 30,				Ended September 30,
		2018		2017		2018		2017
Consolidated adjusted EBITDA (1)	$	11,299	$	12,707	$	33,102	$	40,201
Net interest expense (1)		(2,772)		(3,273)		(7,681)		(10,014)
Dividend income		457		–		1,002		–
Cash paid for income taxes		(530)		(82)		(1,222)		(671)
Capital expenditures (2)		(6,567)		(2,343)		(12,277)		(9,639)
Non-recurring cash severance charge		–		–		(782)		–
Net revenue – FCC spectrum incentive auction		–		263,943		–		263,943
Expenses – FCC spectrum incentive auction		–		(2,103)		–		(2,103)
Free cash flow (1)		1,887		268,849		12,142		281,717

Capital expenditures (2)		6,567		2,343		12,277		9,639
Other income (loss)		327		–		622		–
Change in fair value of contingent consideration		114		–		(1,073)		–
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		(592)		(791)		8,578		12,790
(Increase) decrease in prepaid expenses and other assets		(663)		(383)		(7,210)		(1,830)
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(2,059)		130		(2,839)		(8,862)
Cash Flows From Operating Activities	$	5,581	$	270,148	$	22,497	$	293,454

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

View original content:http://www.prnewswire.com/news-releases/entravision-communications-corporation-reports-third-quarter-2018-results-300746011.html

SOURCE Entravision Communications Corporation

November 7, 2018

Entravision Communications Corporation Reports Second Quarter 2018 Results

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

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

	Three-Month Period									Six-Month Period
	Ended June 30,									Ended June 30,
	2018		2017		% Change			2018			2017		% Change
Net revenue	$	74,329	$	70,509		5	%	$	141,167		$	128,019		10	%
Cost of revenue – digital (1)		11,384		8,762		30	%		22,009			10,514		109	%
Operating expenses (2)		43,790		41,945		4	%		88,117			80,237		10	%
Corporate expenses (3)		6,266		5,619		12	%		12,241			11,486		7	%

Consolidated adjusted EBITDA (4)		14,866		14,924		(0)	%		21,803			27,494		(21)	%

Free cash flow (5)	$	8,664	$	5,643		54	%	$	10,255		$	12,868		(20)	%

Net income (loss)	$	4,840	$	3,495		38	%	$	3,033		$	6,113		(50)	%

Net income (loss) per share, basic and diluted	$	0.05	$	0.04		25	%	$	0.03		$	0.07		(57)	%

Weighted average common shares outstanding, basic		88,959,935		90,354,982					89,635,759			90,296,057
Weighted average common shares outstanding, diluted		90,021,949		92,033,111					90,805,086			91,897,150

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

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

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

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

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

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

Quarterly Cash Dividend

The Company announced today that its Board of Directors has approved a quarterly cash dividend to shareholders of $0.05 per share of the Company’s Class A, Class B and Class U common stock, in an aggregate amount of approximately $4.5 million. The quarterly dividend will be payable on September 28, 2018 to shareholders of record as of the close of business on September 14, 2018, and the common stock will trade ex-dividend on September 13, 2018. As previously announced, the Company currently anticipates that future cash dividends will be paid on a quarterly basis; however, any decision to pay future cash dividends will be subject to approval by the Board.

Financial Results

Three-Month Period Ended June 30, 2018 Compared to Three-Month Period Ended June 30, 2017 (Unaudited)

	Three-Month Period
	Ended June 30,
	2018		2017		% Change
Net revenue	$	74,329	$	70,509		5	%
Cost of revenue – digital (1)		11,384		8,762		30	%
Operating expenses (1)		43,790		41,945		4	%
Corporate expenses (1)		6,266		5,619		12	%
Depreciation and amortization		4,019		4,577		(12)	%
Change in fair value of contingent consideration		(913)		–		*
Foreign currency (gain) loss		(17)		351		*

Operating income (loss)		9,800		9,255		6	%
Interest expense, net		(2,962)		(3,573)		(17)	%
Dividend income		417		–		*
Other income (loss)		273		–		*

Income (loss) before income taxes		7,528		5,682		32	%

Income tax benefit (expense)		(2,652)		(2,119)		25	%
Net income (loss) before equity in net income (loss) of nonconsolidated affiliates		4,876		3,563		37	%

Equity in net income (loss) of nonconsolidated affiliates, net of tax		(36)		(68)		(47)	%

Net income (loss)	$	4,840	$	3,495		38	%

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

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

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

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

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

Six-Month Period Ended June 30, 2018 Compared to Six-Month Period Ended June 30, 2017 (Unaudited)

	Six-Month Period
	Ended June 30,
	2018		2017		% Change
Net revenue	$	141,167	$	128,019		10	%
Cost of revenue – digital (1)		22,009		10,514		109	%
Operating expenses (1)		88,117		80,237		10	%
Corporate expenses (1)		12,241		11,486		7	%
Depreciation and amortization		7,958		8,123		(2)	%
Change in fair value of contingent consideration		1,187		–	*
Foreign currency (gain) loss		196		351		(44)	%

Operating income (loss)		9,459		17,308		(45)	%
Interest expense, net		(5,447)		(7,109)		(23)	%
Dividend income		545		–	*
Other income (loss)		295		–	*

Income (loss) before income taxes		4,852		10,199		(52)	%

Income tax benefit (expense)		(1,721)		(4,018)		(57)	%
Net income (loss) before equity in net income (loss) of nonconsolidated affiliates		3,131		6,181		(49)	%

Equity in net income (loss) of nonconsolidated affiliates, net of tax		(98)		(68)		44	%

Net income (loss)	$	3,033	$	6,113		(50)	%

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

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

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

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

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

Segment Results

The following represents selected unaudited segment information:

	Three-Month Period							Six-Month Period
	Ended June 30,							Ended June 30,
		2018		2017	% Change				2018		2017	% Change
Net Revenue
Television	$	36,531	$	37,764		(3)	%	$	71,022	$	75,474		(6)	%
Radio		17,240		17,163		0	%		31,343		32,882		(5)	%
Digital		20,558		15,582		32	%		38,802		19,663		97	%
Total	$	74,329	$	70,509		5	%	$	141,167	$	128,019		10	%

Cost of Revenue – digital (1)
Digital	$	11,384	$	8,762		30	%	$	22,009	$	10,514		109	%

Operating Expenses (1)
Television		20,589		20,150		2	%		42,111		40,355		4	%
Radio		15,437		15,620		(1)	%		30,717		31,341		(2)	%
Digital		7,764		6,175		26	%		15,289		8,541		79	%
Total	$	43,790	$	41,945		4	%	$	88,117	$	80,237		10	%

Corporate Expenses (1)	$	6,266	$	5,619		12	%	$	12,241	$	11,486		7	%

Consolidated adjusted EBITDA (1)	$	14,866	$	14,924		(0)	%	$	21,803	$	27,494		(21)	%

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

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

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

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

(Financial Table Follows)

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

	June 30,		December 31,
	2018		2017


ASSETS
Current assets
Cash and cash equivalents	$	108,892	$	39,560
Marketable securities		132,435		–
Restricted cash		769		222,294
Trade receivables, net of allowance for doubtful accounts		76,378		84,348
Assets held for sale		1,179		–
Prepaid expenses and other current assets		11,990		6,260
Total current assets		331,643		352,462
Property and equipment, net		58,562		60,337
Intangible assets subject to amortization, net		25,828		26,758
Intangible assets not subject to amortization		254,506		251,163
Goodwill		73,566		70,557
Other assets		4,442		4,690
Total assets	$	748,547	$	765,967


LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Current maturities of long-term debt	$	3,000	$	3,000
Accounts payable and accrued expenses		52,787		57,563
Deferred revenue		3,386		1,959
Total current liabilities		59,173		62,522
Long-term debt, less current maturities, net of unamortized debt issuance costs		291,237		292,489
Other long-term liabilities		19,553		21,447
Deferred income taxes		42,326		40,639
Total liabilities		412,289		417,097

Stockholders’ equity
Class A common stock		6		7
Class B common stock		2		2
Class U common stock		1		1
Additional paid-in capital		874,508		888,650
Accumulated deficit		(536,697)		(539,730)
Accumulated other comprehensive income (loss)		(1,562)		(60)
Total stockholders’ equity		336,258		348,870
Total liabilities and stockholders’ equity	$	748,547	$	765,967

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

	Three-Month Period				Six-Month Period
	Ended June 30,				Ended June 30,
	2018		2017		2018		2017

Net revenue	$	74,329	$	70,509	$	141,167	$	128,019

Expenses:
Cost of revenue – digital		11,384		8,762		22,009		10,514
Direct operating expenses		31,117		29,915		62,150		57,007
Selling, general and administrative expenses		12,673		12,030		25,967		23,230
Corporate expenses		6,266		5,619		12,241		11,486
Depreciation and amortization		4,019		4,577		7,958		8,123
Change in fair value of contingent consideration		(913)		–		1,187		–
Foreign currency (gain) loss		(17)		351		196		351
		64,529		61,254		131,708		110,711
Operating income (loss)		9,800		9,255		9,459		17,308
Interest expense		(4,001)		(3,683)		(7,399)		(7,328)
Interest income		1,039		110		1,952		219
Dividend income		417		–		545		–
Other income (loss)		273		–		295		–
Income (loss) before income taxes		7,528		5,682		4,852		10,199
Income tax benefit (expense)		(2,652)		(2,119)		(1,721)		(4,018)
Income (loss) before equity in net income (loss) of nonconsolidated affiliate		4,876		3,563		3,131		6,181
Equity in net income (loss) of nonconsolidated affiliate, net of tax		(36)		(68)		(98)		(68)
Net income (loss)	$	4,840	$	3,495	$	3,033	$	6,113

Basic and diluted earnings per share:
Net income (loss) per share, basic and diluted	$	0.05	$	0.04	$	0.03	$	0.07

Cash dividends declared per common share	$	0.05	$	0.03	$	0.05	$	0.06

Weighted average common shares outstanding, basic		88,959,935		90,354,982		89,635,759		90,296,057
Weighted average common shares outstanding, diluted		90,021,949		92,033,111		90,805,086		91,897,150

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

	Three-Month Period				Six-Month Period
	Ended June 30,				Ended June 30,
	2018		2017		2018		2017
Cash flows from operating activities:
Net income (loss)	$	4,840	$	3,495	$	3,033	$	6,113
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		4,019		4,577		7,958		8,123
Deferred income taxes		2,043		1,955		1,029		3,428
Non-cash interest expense		414		186		538		369
Amortization of syndication contracts		176		109		352		218
Payments on syndication contracts		(174)		(102)		(360)		(215)
Equity in net (income) loss of nonconsolidated affiliate		36		68		98		68
Non-cash stock-based compensation		1,176		1,085		2,425		2,060
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		(1,873)		2,602		9,170		13,581
(Increase) decrease in prepaid expenses and other assets		(2,566)		(556)		(6,547)		(1,447)
Increase (decrease) in accounts payable, accrued expenses and other liabilities		5,197		(3,029)		(780)		(8,992)
Net cash provided by operating activities		13,288		10,390		16,916		23,306
Cash flows from investing activities:
Proceeds from sale of property and equipment and intangible assets		33		–		33		–
Purchases of property and equipment		(2,680)		(5,730)		(5,710)		(7,296)
Purchases of intangible assets		–		–		(3,153)		–
Purchases of businesses, net of cash acquired		(3,563)		(7,489)		(3,563)		(7,489)
Purchases of marketable securities		–		–		(159,403)		–
Proceeds from marketable securities		25,000		–		25,000		–
Purchases of investments		(35)		(1,950)		(35)		(2,200)
Deposits on acquisitions		–		–		–		(190)
Net cash provided by (used in) investing activities		18,755		(15,169)		(146,831)		(17,175)
Cash flows from financing activities:
Proceeds from stock option exercises		106		215		106		526
Tax payments related to shares withheld for share-based compensation plans		(12)		–		(2,239)		–
Payments on long-term debt		(750)		(937)		(1,500)		(1,875)
Dividends paid		(4,442)		(2,826)		(8,960)		(5,647)
Repurchase of Class A common stock		(5,258)		–		(7,660)		–
Payments of contingent consideration		(2,015)		–		(2,015)		–
Net cash used in financing activities		(12,371)		(3,548)		(22,268)		(6,996)
Effect of exchange rates on cash, cash equivalents and restricted cash		(4)		(18)		(10)		(18)
Net increase (decrease) in cash, cash equivalents and restricted cash		19,668		(8,345)		(152,193)		(883)
Cash, cash equivalents and restricted cash:
Beginning		89,993		68,982		261,854		61,520
Ending	$	109,661	$	60,637	$	109,661	$	60,637

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

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

	Three-Month Period				Six-Month Period
	Ended June 30,				Ended June 30,
		2018		2017		2018		2017

Consolidated adjusted EBITDA (1)	$	14,866	$	14,924	$	21,803	$	27,494

Interest expense		(4,001)		(3,683)		(7,399)		(7,328)
Interest income		1,039		110		1,952		219
Dividend income		417		–		545		–
Income tax benefit (expense)		(2,652)		(2,119)		(1,721)		(4,018)
Equity in net loss of nonconsolidated affiliates		(36)		(68)		(98)		(68)
Amortization of syndication contracts		(176)		(109)		(352)		(218)
Payments on syndication contracts		174		102		360		215
Non-cash stock-based compensation included in direct operating expenses		(76)		(307)		(292)		(530)
Non-cash stock-based compensation included in corporate expenses		(1,100)		(778)		(2,133)		(1,530)
Depreciation and amortization		(4,019)		(4,577)		(7,958)		(8,123)
Change in fair value of contingent consideration		913		–		(1,187)		–
Non-recurring cash severance charge		(782)		–		(782)		–
Other income (loss)		273		–		295		–
Net income (loss)		4,840		3,495		3,033		6,113


Depreciation and amortization		4,019		4,577		7,958		8,123
Deferred income taxes		2,043		1,955		1,029		3,428
Non-cash interest expense		414		186		538		369
Amortization of syndication contracts		176		109		352		218
Payments on syndication contracts		(174)		(102)		(360)		(215)
Equity in net (income) loss of nonconsolidated affiliate		36		68		98		68
Non-cash stock-based compensation		1,176		1,085		2,425		2,060
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		(1,873)		2,602		9,170		13,581
(Increase) decrease in prepaid expenses and other assets		(2,566)		(556)		(6,547)		(1,447)
Increase (decrease) in accounts payable, accrued expenses and other liabilities		5,197		(3,029)		(780)		(8,992)
Cash flows from operating activities		13,288		10,390		16,916		23,306

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

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

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

	Three-Month Period				Six-Month Period
	Ended June 30,				Ended June 30,
		2018		2017		2018		2017
Consolidated adjusted EBITDA (1)	$	14,866	$	14,924	$	21,803	$	27,494
Net interest expense (1)		(2,549)		(3,387)		(4,909)		(6,740)
Dividend income		417		–		545		–
Cash paid for income taxes		(608)		(164)		(692)		(590)
Capital expenditures (2)		(2,680)		(5,730)		(5,710)		(7,296)
Non-recurring cash severance charge		(782)		–		(782)		–
Free cash flow (1)		8,664		5,643		10,255		12,868

Capital expenditures (2)		2,680		5,730		5,710		7,296
Other income (loss)		273		–		295		–
Change in fair value of contingent consideration		913		–		(1,187)		–
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		(1,873)		2,602		9,170		13,581
(Increase) decrease in prepaid expenses and other assets		(2,566)		(556)		(6,547)		(1,447)
Increase (decrease) in accounts payable, accrued expenses and other liabilities		5,197		(3,029)		(780)		(8,992)
Cash Flows From Operating Activities	$	13,288	$	10,390	$	16,916	$	23,306

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

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

View original content:http://www.prnewswire.com/news-releases/entravision-communications-corporation-reports-second-quarter-2018-results-300691435.html

SOURCE Entravision Communications Corporation

August 2, 2018

Entravision Communications Corporation Announces Acquisition of Smadex

SANTA MONICA, Calif., June 13, 2018 /PRNewswire/ — Entravision Communications Corporation (NYSE: EVC), a diversified global media and advertising technology company serving Latino consumers, announced today it has acquired Smadex, a digital advertising technology company. The acquisition was completed through Entravision’s Headway business unit and financial terms of the transaction were not disclosed.

Based in Barcelona, Spain, Smadex is a leading mobile programmatic solutions provider and demand-side platform (DSP) with proprietary technology that allows advertisers to execute performance campaigns on mobile devices, using machine learning-assisted bidding algorithms to identify the best combination of creative assets, audience targeting and pricing. Smadex joins Entravision’s growing portfolio of leading digital and technology businesses that provide advertising technology platforms to deliver performance-based solutions and data insights for marketers. Smadex will become part of Entravision’s Headway business unit which is a leading data-driven media buying company for marketers worldwide, integrating proprietary technology and state-of-the-art partner platforms. Headway helps brands optimize and target ad campaigns with rapid innovation, cutting-edge technology and strong multi-channel operations.

“Smadex is a strong strategic fit with our existing digital businesses that will allow us to gain unique technology expertise, broaden our digital solutions offering, enhance our execution of performance campaigns and drive incremental revenues,” said Walter F. Ulloa, Chairman and Chief Executive Officer of Entravision. “It has an experienced leadership team, growing client base and proven technology platform, powered by machine learning and data science, that will support Entravision and its Headway, Pulpo and other business units in meeting the increasing digital advertising and data services needs of our marketing partners. We are pleased to welcome Smadex to the Entravision family and continue to pursue digital assets that will further strengthen our position as a diversified global media, data and advertising technology company.”

About Smadex
Smadex is a leading mobile-first programmatic solution for branding and performance marketers. The company address the challenges and concerns of marketers by providing a fully transparent platform built on strong technology, countless programmatic management features and powerful machine learning algorithms that focus on achieving real outcomes. Smadex allows advertisers to access global consumers through the highest quality mobile inventory supply, and capture market attention using strong and engaging advertising formats to drive performance sales and brand metrics. The company’s open platform can easily plug and play with any new external partners. Headquarter in Barcelona, Spain, Smadex is a technology focused company led by engineering and data science, working with agencies and direct clients across the globe.

About Entravision Communications Corporation
Entravision is a diversified global media, data and advertising 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 55 television stations, 49 radio stations, digital media properties and advertising technology platforms that deliver performance-based solutions and data insights. 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 #1-ranked online advertising platform in Hispanic reach according to comScore Media Metrix®. 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 as well as digital media platforms, including Headway’s audio streaming 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.

View original content:http://www.prnewswire.com/news-releases/entravision-communications-corporation-announces-acquisition-of-smadex-300665552.html

SOURCE Entravision Communications Corporation

June 13, 2018

Tag: Smadex