Tag: UniMás

SANTA MONICA, Calif.–(BUSINESS WIRE)–
Entravision Communications Corporation (NYSE: EVC), a leading global media and marketing technology company, today announced financial results for the three-month period ended March 31, 2021.

First Quarter 2021 Highlights

• Net revenue up 132% over the same prior-year period
• Net income attributable to common stockholders of $5.4 million, compared to a loss of $35.6 million in the prior year
• Consolidated Adjusted EBITDA up 47% over the same prior-year period
• Operating cash flow up 95% over the same prior-year period
• Free cash flow up 149% over the same prior-year period
• Quarterly cash dividend of $0.025 per share

“We are very pleased with our results for the first quarter 2021, with core television and audio performing well, along with our digital segment that continues to see solid growth,” said Walter F. Ulloa, Chairman and Chief Executive Officer. “We are particularly pleased with the progress of our recent acquisition of Cisneros Interactive through which we significantly expanded Entravision’s digital offerings to customers, including representing some of the strongest global audience and ad tech platforms. As we grew our top line, we also remained cost conscious and continue to operate a much more efficient business than even prior to the onset of the COVID-19 pandemic. Overall, we are optimistic for gradual, but continued progress throughout the balance of the year as macroeconomic conditions progress.”

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, 2021 to shareholders of record as of the close of business on June 16, 2021, and the common stock will trade ex-dividend on June 15, 2021. The Company currently anticipates that future cash dividends will be paid on a quarterly basis; however, any decision to pay future cash dividends will be subject to approval by the Board.

Non-GAAP Financial Measures

This press release contains certain non-GAAP financial measures as defined by SEC Regulation G. The GAAP financial measure most directly comparable to each of these non-GAAP financial measures, and a table reconciling each of these non-GAAP financial measures to its most directly comparable GAAP financial measure is included beginning on page 9.

Unaudited Financial Highlights

		Three-Month Period
		Ended March 31,
		2021				2020				% Change
Net revenue		$	148,880			$	64,249			132	%
Cost of revenue – digital (1)			84,756				7,347			*
Operating expenses (2)			40,414				40,270			0	%
Corporate expenses (3)			7,158				6,840			5	%
Foreign currency (gain) loss			586				1,508			(61	)%
Consolidated adjusted EBITDA (4)			14,195				9,679			47	%
Free cash flow (5)		$	13,029			$	5,229			149	%
Net income (loss)		$	7,002			$	(35,592	)		*
Net (income) loss attributable to redeemable noncontrolling interest		$	(1,573	)		$	–			*
Net income (loss) attributable to common stockholders		$	5,429			$	(35,592	)		*
Net income (loss) per share attributable to common stockholders, basic and diluted		$	0.06			$	(0.42	)		*
Weighted average common shares outstanding, basic			85,041,628				84,317,767
Weighted average common shares outstanding, diluted			86,986,581				84,317,767

(1)		Consists primarily of the costs of online media acquired from third-party publishers. Media cost is classified as cost of revenue in the period in which the corresponding revenue is recognized.
(2)		Operating expenses includes direct operating and selling, general and administrative expenses. Included in operating expenses are $0.3 million and $0.1 million of non-cash stock-based compensation for the three-month periods ended March 31, 2021 and 2020, respectively.
(3)		Corporate expenses include $0.8 million and $0.7 million of non-cash stock-based compensation for the three-month periods ended March 31, 2021 and 2020, respectively.
(4)		Consolidated adjusted EBITDA means net income (loss) plus gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation included in operating and corporate expenses, net interest expense, other operating gain (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from the Federal Communications Commission, or FCC, spectrum incentive auction less related expenses, expenses associated with investments, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings. We use the term consolidated adjusted EBITDA because that measure is defined in the agreement governing our current credit facility (“the 2017 Credit Facility”) and does not include gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation, net interest expense, other income (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from FCC spectrum incentive auction less related expenses, expenses associated with investments, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings.
(5)		Free cash flow is defined as consolidated adjusted EBITDA less cash paid for income taxes, net interest expense, capital expenditures and non-recurring cash expenses plus dividend income, and other operating gain (loss). Net interest expense is defined as interest expense, less non-cash interest expense relating to amortization of debt finance costs, and less interest income.

Unaudited Financial Results

		Three-Month Period
		Ended March 31,
		2021				2020				% Change
Net revenue		$	148,880			$	64,249			132	%
Cost of revenue – digital (1)			84,756				7,347			*
Operating expenses (1)			40,414				40,270			0	%
Corporate expenses (1)			7,158				6,840			5	%
Depreciation and amortization			5,184				4,512			15	%
Impairment charge			1,326				39,835			(97	)%
Foreign currency (gain) loss			586				1,508			(61	)%
Other operating (gain) loss			(1,913	)			(836	)		129	%
Operating income (loss)			11,369				(35,227	)		*
Interest expense, net			(1,577	)			(2,056	)		(23	)%
Dividend income			2				23			(91	)%
Income (loss) before income taxes			9,794				(37,260	)		*
Income tax benefit (expense)			(2,792	)			1,668			*
Net income (loss)			7,002				(35,592	)		*
Net (income) loss attributable to redeemable noncontrolling interest			(1,573	)			–			*
Net income (loss) attributable to common stockholders		$	5,429			$	(35,592	)		*

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

Net revenue in the first quarter of 2021 totaled $148.9 million, up 132% from $64.2 million in the prior-year period. Of the overall increase, approximately $88.2 million was attributable to our digital segment and was primarily due to our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, partially offset by a decrease in advertising revenue as a result of declines in pre-acquisition digital revenue and the continuing economic crisis resulting from the COVID-19 pandemic. The overall increase in net revenue was partially offset by a decrease of approximately $3.1 million attributable to our television segment due to a decrease in political revenue, partially offset by increases in revenue from spectrum usage rights and local and national advertising revenue. Additionally, the overall increase in net revenue was partially offset by a decrease of approximately $0.4 million attributable to our radio segment.

Cost of revenue in the first quarter of 2021 totaled $84.8 million compared to $7.3 million in the prior-year period. The increase was primarily due to increased costs of revenue associated with the increase in net revenue due to our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020.

Operating expenses in the first quarter of 2021 totaled $40.4 million, up slightly from $40.3 million in the prior-year period. The increase was primarily due to our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, partially offset by decreases in salary expense associated with furloughs and layoffs that occurred in 2020.

Corporate expenses in the first quarter of 2021 totaled $7.2 million, up 5% from $6.8 million in the prior-year period. The increase was primarily due to an increase in salaries and audit fees.

Balance Sheet & Related Metrics

Cash and marketable securities as of March 31, 2021 totaled approximately $166 million. Total debt was $214.5 million. Net of $75 million of cash and marketable securities, total leverage as defined in the Company’s credit agreement was 2.1 times at the end of the first quarter 2021. Net of total accessible cash and marketable securities, total leverage was 1.0 times.

Unaudited Segment Results

		Three-Month Period
		Ended March 31,
		2021			2020			% Change
Net Revenue
Television		$	36,091		$	39,199		(8	)%
Digital			101,482			13,331		661	%
Radio			11,307			11,719		(4	)%
Total		$	148,880		$	64,249		132	%
Cost of Revenue – digital (1)
Digital		$	84,756		$	7,347		*
Operating Expenses (1)
Television			19,884			21,757		(9	)%
Digital			10,850			6,864		58	%
Radio			9,680			11,649		(17	)%
Total		$	40,414		$	40,270		0	%
Corporate Expenses (1)		$	7,158		$	6,840		5	%
Consolidated adjusted EBITDA (1)		$	14,195		$	9,679		47	%

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

Notice of Conference Call

Entravision Communications Corporation will hold a conference call to discuss its first quarter 2021 results on Thursday, May 6, 2021 at 5 p.m. Eastern Time. To access the conference call, please dial (877) 317-6789 (U.S.) or (412) 317-6789 (Int’l) ten minutes prior to the start time. The call will also be available via live webcast on the investor relations portion of the Company’s website located at www.entravision.com.

About Entravision Communications Corporation

Entravision is a diversified global media, marketing and technology company serving clients throughout the United States and in more than 20 countries across Latin America, Europe, and Asia. Entravision has 54 television stations and is the largest affiliate group of the Univision and UniMás television networks, and 48 Spanish-language radio stations that feature nationally recognized, award-winning talent. Our dynamic digital portfolio includes Entravision Digital, which serves SMBs in high-density U.S. Latino markets and provides cutting-edge mobile programmatic solutions and demand-side platforms that allow advertisers to execute performance campaigns using machine-learned bidding algorithms, along with Cisneros Interactive, a leader in digital advertising solutions in the Latin American and U.S. Hispanic markets representing major technology platforms. Shares of Entravision Class A Common Stock trade on The New York Stock Exchange under the ticker symbol: EVC. Learn more about all of our media, marketing and technology offerings at entravision.com or connect with us on LinkedIn and Facebook.

Forward-Looking Statements

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

Entravision Communications Corporation
Consolidated Balance Sheets
(In thousands; unaudited)
		March 31,				December 31,
		2021				2020
ASSETS
Current assets
Cash and cash equivalents		$	149,987			$	119,162
Marketable securities			15,745				27,988
Restricted cash			749				749
Trade receivables, net of allowance for doubtful accounts			132,149				142,004
Assets held for sale			6,138				2,141
Prepaid expenses and other current assets			18,418				18,021
Total current assets			323,186				310,065
Property and equipment, net			69,737				72,004
Intangible assets subject to amortization, net			47,587				49,412
Intangible assets not subject to amortization			211,753				216,653
Goodwill			58,043				58,043
Operating leases right of use asset			34,276				33,525
Other assets			7,586				7,643
Total assets		$	752,168			$	747,345
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Current maturities of long-term debt		$	3,000			$	3,000
Accounts payable and accrued expenses			124,369				126,849
Operating lease liabilities			7,510				7,290
Total current liabilities			134,879				137,139
Long-term debt, less current maturities, net of unamortized debt issuance costs			209,811				210,454
Long-term operating lease liabilities			32,015				31,775
Other long-term liabilities			3,616				3,732
Deferred income taxes			56,306				54,980
Total liabilities			436,627				438,080
Redeemable noncontrolling interest			34,858				33,285
Stockholders’ equity
Class A common stock			6				6
Class B common stock			2				2
Class U common stock			1				1
Additional paid-in capital			827,749				828,813
Accumulated deficit			(546,357	)			(551,786	)
Accumulated other comprehensive income (loss)			(718	)			(1,056	)
Total stockholders’ equity			280,683				275,980
Total liabilities and stockholders’ equity		$	752,168			$	747,345

Entravision Communications Corporation
Consolidated Statements of Operations
(In thousands, except share and per share data)
(Unaudited)
		Three-Month Period
		Ended March 31,
		2021				2020
Net revenue		$	148,880			$	64,249
Expenses:
Cost of revenue – digital			84,756				7,347
Direct operating expenses			26,561				26,679
Selling, general and administrative expenses			13,853				13,591
Corporate expenses			7,158				6,840
Depreciation and amortization			5,184				4,512
Impairment charge			1,326				39,835
Foreign currency (gain) loss			586				1,508
Other operating (gain) loss			(1,913	)			(836	)
			137,511				99,476
Operating income (loss)			11,369				(35,227	)
Interest expense			(1,717	)			(2,680	)
Interest income			140				624
Dividend income			2				23
Income (loss) before income taxes			9,794				(37,260	)
Income tax benefit (expense)			(2,792	)			1,668
Net income (loss)			7,002				(35,592	)
Net (income) loss attributable to redeemable noncontrolling interest			(1,573	)			–
Net income (loss) attributable to common stockholders		$	5,429			$	(35,592	)
Basic and diluted earnings per share:
Net income (loss) per share attributable to common stockholders, basic and diluted		$	0.06			$	(0.42	)
Cash dividends declared per common share, basic and diluted		$	0.03			$	0.05
Weighted average common shares outstanding, basic			85,041,628				84,317,767
Weighted average common shares outstanding, diluted			86,986,581				84,317,767

Entravision Communications Corporation
Consolidated Statements of Cash Flows
(In thousands; unaudited)
		Three-Month Period
		Ended March 31,
		2021				2020
Cash flows from operating activities:
Net income (loss)		$	7,002			$	(35,592	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization			5,184				4,512
Impairment charge			1,326				39,835
Deferred income taxes			2,987				(1,813	)
Non-cash interest			139				169
Amortization of syndication contracts			119				130
Payments on syndication contracts			(124	)			(130	)
Non-cash stock-based compensation			1,071				789
Changes in assets and liabilities:
(Increase) decrease in accounts receivable			9,927				7,482
(Increase) decrease in prepaid expenses and other assets			1,177				1,026
Increase (decrease) in accounts payable, accrued expenses and other liabilities			(5,356	)			(4,394	)
Net cash provided by operating activities			23,452				12,014
Cash flows from investing activities:
Purchases of property and equipment			(1,838	)			(2,671	)
Purchases of intangible assets			—				(155	)
Proceeds from marketable securities			12,120				16,617
Net cash provided by (used in) investing activities			10,282				13,791
Cash flows from financing activities:
Tax payments related to shares withheld for share-based compensation plans			(9	)			—
Payments on long-term debt			(750	)			(750	)
Dividends paid			(2,126	)			(4,218	)
Repurchase of Class A common stock			—				(525	)
Net cash used in financing activities			(2,885	)			(5,493	)
Effect of exchange rates on cash, cash equivalents and restricted cash			(24	)			77
Net increase (decrease) in cash, cash equivalents and restricted cash			30,825				20,389
Cash, cash equivalents and restricted cash:
Beginning			119,911				33,857
Ending		$	150,736			$	54,246

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,
		2021				2020
Consolidated adjusted EBITDA (1)		$	14,195			$	9,679
EBITDA attributable to redeemable noncontrolling interest			2,837				–
Interest expense			(1,717	)			(2,680	)
Interest income			140				624
Dividend income			2				23
Income tax expense			(2,792	)			1,668
Amortization of syndication contracts			(119	)			(130	)
Payments on syndication contracts			124				130
Non-cash stock-based compensation included in direct operating expenses			(316	)			(131	)
Non-cash stock-based compensation included in corporate expenses			(755	)			(658	)
Depreciation and amortization			(5,184	)			(4,512	)
Impairment charge			(1,326	)			(39,835	)
Non-recurring cash severance charge			–				(606	)
Other operating gain (loss)			1,913				836
Net (income) loss attributable to redeemable noncontrolling interest			(1,573	)			–
Net income (loss) attributable to common stockholders			5,429				(35,592	)
Depreciation and amortization			5,184				4,512
Impairment charge			1,326				39,835
Deferred income taxes			2,987				(1,813	)
Non-cash interest			139				169
Amortization of syndication contracts			119				130
Payments on syndication contracts			(124	)			(130	)
Non-cash stock-based compensation			1,071				789
Net income (loss) attributable to redeemable noncontrolling interest			1,573				–
Changes in assets and liabilities:
(Increase) decrease in accounts receivable			9,927				7,482
(Increase) decrease in prepaid expenses and other assets			1,177				1,026
Increase (decrease) in accounts payable, accrued expenses and other liabilities			(5,356	)			(4,394	)
Cash flows from operating activities			23,452				12,014

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

Entravision Communications Corporation

Reconciliation of Free Cash Flow to Cash Flows From Operating Activities

(In thousands; unaudited)

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

		Three-Month Period
		Ended March 31,
		2021				2020
Consolidated adjusted EBITDA (1)		$	14,195			$	9,679
Net interest expense (1)			(1,438	)			(1,887	)
Dividend income			2				23
Cash paid for income taxes			195				(145	)
Capital expenditures (2)			(1,838	)			(2,671	)
Non-recurring cash severance charge			–				(606	)
Other operating gain (loss)			1,913				836
Free cash flow (1)			13,029				5,229
Capital expenditures (2)			1,838				2,671
EBITDA attributable to redeemable noncontrolling interest			2,837				–
Changes in assets and liabilities:
(Increase) decrease in accounts receivable			9,927				7,482
(Increase) decrease in prepaid expenses and other assets			1,177				1,026
Increase (decrease) in accounts payable, accrued expenses and other liabilities			(5,356	)			(4,394	)
Cash Flows From Operating Activities		$	23,452			$	12,014

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

View source version on businesswire.com:

https://www.businesswire.com/news/home/20210506006100/en/

Christopher T. Young

Chief Financial Officer

Entravision Communications Corporation

310-447-3870

Kimberly Esterkin

ADDO Investor Relations

310-829-5400

evc@addo.com

Source: Entravision Communications Corporation

SANTA MONICA, Calif.–(BUSINESS WIRE)–
Entravision Communications Corporation (NYSE: EVC), a leading global media and marketing technology company, announced that it will release its first quarter 2021 financial results after market close on Thursday, May 6, 2021. The Company will host a conference call that day at 5:00 p.m. Eastern Time to discuss the first quarter results.

To access the conference call, please dial (877) 317-6789 (U.S.) or (412) 317-6789 (International) ten minutes prior to the start time. The call will also be available via live webcast on the investor relations portion of the Company’s website located at www.entravision.com.

If you cannot listen to the conference call at its scheduled time, there will be a replay available through Thursday, June 3, 2021 which can be accessed by dialing (877) 344-7529 (U.S.) or (412) 317-0088 (International) and entering the passcode 10156075. The webcast will also be archived on the Company’s website.

About Entravision Communications Corporation

Entravision is a diversified global media, marketing and technology company serving clients throughout the United States and in more than 20 countries across Latin America, Europe, and Asia. Entravision has 54 television stations and is the largest affiliate group of the Univision and UniMás television networks, and 48 Spanish-language radio stations that feature nationally recognized, award-winning talent. Our dynamic digital portfolio includes Entravision Digital, which serves SMBs in high-density U.S. Latino markets and provides cutting-edge mobile programmatic solutions and demand-side platforms that allow advertisers to execute performance campaigns using machine-learned bidding algorithms, along with Cisneros Interactive, a leader in digital advertising solutions in the Latin American and U.S. Hispanic markets representing major technology platforms. Shares of Entravision Class A Common Stock trade on The New York Stock Exchange under the ticker symbol: EVC. Learn more about all of our media, marketing and technology offerings at entravision.com or connect with us on LinkedIn and Facebook.

View source version on businesswire.com:

https://www.businesswire.com/news/home/20210503005725/en/

Christopher T. Young

Chief Financial Officer

Entravision Communications Corporation

310-447-3870

Kimberly Esterkin

ADDO Investor Relations

310-829-5400

evc@addo.com

Source: Entravision Communications Corporation

SANTA MONICA, Calif.–(BUSINESS WIRE)–
Entravision Communications Corporation (NYSE: EVC) (“Entravision or “the Company”) today announced that the Company has filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2020 (the “Form 10-K”) with the Securities and Exchange Commission (the “SEC”).

Today’s announcement follows the Company’s previous notification from the New York Stock Exchange (the “NYSE”) on April 7, 2021 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”) as it did not file its Form 10-K with the SEC by the extended deadline provided by Rule 12b-25. Such notices are routinely sent by the NYSE when issuer SEC filings are delayed. The NYSE informed Entravision that under the NYSE Rules Entravision had six months from April 1, 2021 to file its Form 10-K with the SEC. The Company adhered to this requirement, filing its 10-K on April 12, 2021 well ahead of the six-month deadline.

To read Entravision’s full 10-K for the year ended December 31, 2020 and all other Company SEC filings, please visit the SEC’s website or the SEC Filings page at investor.entravision.com.

About Entravision Communications Corporation

Entravision is a diversified global media, marketing, and technology company serving clients throughout the United States and in more than 20 countries across Latin America, Europe, and Asia. Entravision has 54 television stations and is the largest affiliate group of the Univision and UniMás television networks, and 48 Spanish-language radio stations that feature nationally recognized, award-winning talent. Our dynamic digital portfolio includes Entravision Digital, which serves SMBs in high-density U.S. Latino markets and provides cutting-edge mobile programmatic solutions and demand-side platforms that allow advertisers to execute performance campaigns using machine-learned bidding algorithms, along with Cisneros Interactive, a leader in digital advertising solutions in the Latin American and U.S. Hispanic markets representing major technology platforms. Shares of Entravision Class A Common Stock trade on The New York Stock Exchange under the ticker symbol: EVC. Learn more about all of our media, marketing and technology offerings at entravision.com or connect with us on LinkedIn and Facebook.

Forward-Looking Statements

This press release contains certain forward-looking statements, including without limitation the Company’s current expectations and intentions with respect to the filing of its Form 10-K. These forward-looking statements, which are included in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, may involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this press release. Although the Company believes 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.

View source version on businesswire.com:

https://www.businesswire.com/news/home/20210412005520/en/

Christopher T. Young

Chief Financial Officer

Entravision Communications Corporation

310-447-3870

Kimberly Esterkin

ADDO Investor Relations

310-829-5400

evc@addoir.com

Source: Entravision Communications Corporation

– Reports Quarter Over Quarter Net Income Attributable to Common Stockholders Growth of 176% –


– Reports Quarter Over Quarter Consolidated Adjusted EBITDA Growth of 195% –


– Reports Quarter Over Quarter Operating Cash Flow Growth of 369% –


– Reports Quarter Over Quarter Free Cash Flow Growth of 495% –


– Quarterly Cash Dividend of $0.025 Per Share –

SANTA MONICA, Calif.–(BUSINESS WIRE)–
Entravision Communications Corporation (NYSE: EVC) today reported unaudited financial results for the three- and twelve-month periods ended December 31, 2020.

“Entravision capped off a very challenging year with an exceptionally strong fourth quarter,” said Walter F. Ulloa, Chairman and Chief Executive Officer. “In addition to achieving record political revenues in the fourth quarter of 2020, our digital business expanded significantly and was up 424% over the prior-year period due in large part to our acquisition of a majority interest in Cisneros Interactive. Importantly, all three of our business segments grew in the fourth quarter of 2020 compared to the prior year, positioning us well for 2021.”

Mr. Ulloa continued, “This past quarter, as we focused on streamlining our cost structure to maintain the stability of our business, we also made great progress in strengthening our digital segment. In November, we appointed industry veteran and member of our Board of Directors Juan Saldívar as our new Chief Digital, Strategy and Accountability Officer. Juan’s appointment followed a number of strategic moves in 2020 to strengthen our portfolio of digital assets, including both the formation of Entravision Digital and our majority investment in Cisneros Interactive. We will continue to build upon our digital offerings, while also maintaining and strengthening our television and radio segments.”

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

		Three Months Ended											Twelve Months Ended
		December 31,											December 31,
		2020				2019				% Change			2020				2019				% Change
Net revenue		$	171,683			$	70,838			142	%		$	344,026			$	273,575			26	%
Cost of revenue – digital (1)			85,326				10,314			727	%			106,928				36,757			191	%
Operating expenses (2)			45,945				44,169			4	%			153,313				173,377			(12	)%
Corporate expenses (3)			9,296				7,887			18	%			27,807				28,067			(1	)%
Foreign currency (gain) loss			(1,725	)			(223	)		674	%			(1,052	)			754			*
Consolidated adjusted EBITDA (4)			32,646				11,056			195	%			60,419				41,209			47	%
Free cash flow (5)		$	28,641			$	4,813			495	%		$	43,029			$	8,292			419	%
Net income (loss)		$	22,851			$	7,360			210	%		$	(1,387	)		$	(19,712	)		(93	)%
Net (income) loss attributable to redeemable noncontrolling interest		$	(2,523	)		$	–			*			$	(2,523	)		$	–			*
Net income (loss) attributable to common stockholders		$	20,328			$	7,360			176	%		$	(3,910	)		$	(19,712	)		(80	)%
Net income (loss) per share attributable to common stockholders, basic and diluted		$	0.24			$	0.09			167	%		$	(0.05	)		$	(0.23	)		(78	)%
Weighted average common shares outstanding, basic			84,297,592				84,226,135							84,231,212				85,107,301
Weighted average common shares outstanding, diluted			85,985,630				85,449,374							84,231,212				85,107,301

(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)		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 $0.9 million and $0.4 million of non-cash stock-based compensation for the three-month periods ended December 31, 2020 and 2019, respectively, and $1.2 million and $0.7 million of non-cash stock-based compensation for the twelve-month periods ended December 31, 2020 and 2019, 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 $1.9 million and $1.5 million of non-cash stock-based compensation for the three-month periods ended December 31, 2020 and 2019, respectively, and $3.9 million and $3.6 million of non-cash stock-based compensation for the twelve-month periods ended December 31, 2020 and 2019, respectively.
(4)		Consolidated adjusted EBITDA means net income (loss) plus gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation included in operating and corporate expenses, net interest expense, other operating gain (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from the Federal Communications Commission, or FCC, spectrum incentive auction less related expenses, expenses associated with investments, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings. We use the term consolidated adjusted EBITDA because that measure is defined in the agreement governing our current credit facility (“the 2017 Credit Facility”) and does not include gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation, net interest expense, other income (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from FCC spectrum incentive auction less related expenses, expenses associated with investments, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings.
(5)		Free cash flow is defined as consolidated adjusted EBITDA less cash paid for income taxes, net interest expense, capital expenditures and non-recurring cash expenses plus dividend income, and other operating gain (loss). Net interest expense is defined as interest expense, less non-cash interest expense relating to amortization of debt finance costs, and less interest income.

Quarterly Cash Dividend

As previously announced by the Company on March 3, 2021, the Company’s Board of Directors approved a quarterly cash dividend to shareholders of $0.025 per share on the Company’s Class A, Class B and Class U common stock, in an aggregate amount of approximately $2.1 million. The quarterly dividend will be payable on March 31, 2021 to shareholders of record as of the close of business on March 16, 2021, and the common stock will trade ex-dividend on March 15, 2021. The Company currently anticipates that future cash dividends will be paid on a quarterly basis; however, any decision to pay future cash dividends will be subject to approval by the Board.

Expects to File Form 12b-25 for Extension of Filing Deadline for 2020 Form 10-K

The Company also announced today that it expects to file a notification of late filing on Form 12b-25 with the Securities and Exchange Commission, which provides an automatic 15-day extension of the filing deadline for its Annual Report on Form 10-K for the fiscal year ended December 31, 2020 (the “2020 Form 10-K”), to March 31, 2021. The Company expects to file the 2020 Form 10-K as soon as practicable within the extension period.

Unaudited Financial Results

The financial results included in this press release are unaudited and represent the most current information available to management. The Company’s independent registered public accounting firm has informed the Company that they have not completed their audit procedures as of the date of this press release. During the course of the completion of these audit procedures, items may be identified that would require the Company to make adjustments which could result in material changes to the Company’s unaudited financial results included in this press release. Consequently, the unaudited financial results included in this press release should not be viewed as substitutes for the Company’s audited results that will be included in the Company’s Annual Report on Form 10-K. Unaudited financial results are as follows:

Three-Month Period Ended December 31, 2020 Compared to Three-Month Period Ended December 31, 2019
(Unaudited)
		Three Months Ended
		December 31,
		2020				2019				% Change
Net revenue			171,683				70,838			142	%
Cost of revenue – digital (1)			85,326				10,314			727	%
Operating expenses (1)			45,945				44,169			4	%
Corporate expenses (1)			9,296				7,887			18	%
Depreciation and amortization			4,963				4,236			17	%
Change in fair value of contingent consideration			—				(4,102	)		(100	)%
Impairment charge			200				654			(69	)%
Foreign currency (gain) loss			(1,725	)			(223	)		674	%
Other operating (gain) loss			(1,346	)			(829	)		62	%
Operating income (loss)			29,024				8,732			232	%
Interest expense, net			(1,474	)			(2,350	)		(37	)%
Dividend income			2				171			(99	)%
Gain (loss) on debt extinguishment			—				(255	)		(100	)%
Income before income taxes			27,552				6,298			337	%
Income tax (expense) benefit			(4,701	)			1,107			*
Net income (loss) before equity in net income (loss) of nonconsolidated affiliates			22,851				7,405			209	%
Equity in net income (loss) of nonconsolidated affiliates			—				(45	)		(100	)%
Net income (loss)			22,851				7,360			210	%
Net (income) loss attributable to redeemable noncontrolling interest			(2,523	)			—			*
Net income (loss) attributable to common stockholders		$	20,328			$	7,360			176	%

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

Net revenue increased to $171.7 million for the three-month period ended December 31, 2020 from $70.8 million for the three-month period ended December 31, 2019, an increase of approximately $100.9 million. Of the overall increase, approximately $13.6 million was attributable to our television segment and was primarily due to increases in political advertising revenue and an increase in national advertising revenue, partially offset by a decrease in local advertising revenue. The decrease in local advertising revenue was primarily a result of the continuing economic crisis resulting from the COVID-19 pandemic, ratings declines, competitive factors with another Spanish-language broadcaster, and changing demographic preferences of audiences. We have previously noted a trend for advertising to move increasingly from traditional media, such as television, to new media, such as digital media, and we expect this trend to continue. Additionally, approximately $84.9 million of the overall increase was attributable to our digital segment and was primarily due to the acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which did not contribute to net revenue in prior periods, partially offset by a decrease in advertising revenue as a result of declines in pre-acquisition digital revenue, and the continuing economic crisis resulting from the COVID-19 pandemic. We have previously noted a trend in our domestic digital operations whereby revenue is shifting more to programmatic revenue, and this trend is now growing in markets outside the United States. As a result, advertisers are demanding more efficiency and lower cost from intermediaries like us. In response to this trend, we are offering programmatic alternatives to advertisers, which is putting pressure on margins. We expect this trend will continue in future periods, likely resulting in a permanent higher volume, lower margin business in our digital segment. The digital advertising industry remains dynamic and is continuing to undergo rapid changes in technology and competition. We expect this trend to continue and possibly accelerate. We must continue to remain vigilant to meet these dynamic and rapid changes including the need to further adjust our business strategies accordingly. No assurances can be given that such adjustments will be successful. Additionally, approximately $2.3 million of the overall increase was attributable to our radio segment and was primarily due to an increase in political advertising revenue and an increase in national advertising revenue, partially offset by decreases in local advertising revenue. The decrease in local advertising revenue was primarily a result of the continuing economic crisis resulting from the COVID-19 pandemic, ratings declines and competitive factors with other Spanish-language broadcasters, and changing demographic preferences of audiences. We have previously noted a trend for advertising to move increasingly from traditional media, such as radio, to new media, such as digital media, and we expect this trend to continue. This trend has had a more significant impact on our radio revenue as compared to television revenue, and we expect that this trend will also continue.

Cost of revenue in our digital segment increased to $85.3 million for the three-month period ended December 31, 2020 from $10.3 million for the three-month period ended December 31, 2019, an increase of $75.0 million, primarily due to increased costs of revenue associated with Cisneros Interactive during the fourth quarter of 2020, following its acquisition during the fourth quarter of 2020, which did not incur cost of revenue for us in prior periods.

Operating expenses increased to $45.9 million for the three-month period ended December 31, 2020 from $44.2 million for the three-month period ended December 31, 2019, an increase of $1.7 million. Of the overall increase, approximately $0.7 million was attributable to our television segment and was primarily due to expenses associated with the increase in political and national advertising revenue, partially offset by decreases in salary expense associated with furloughs and layoffs. Additionally, approximately $4.1 million of the overall increase was attributable to our digital segment primarily due to the acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which did not incur direct operating expenses for us in prior periods, partially offset by decreases in salary expense associated with furloughs and layoffs, and expenses associated with the decrease in advertising revenue as a result of declines in pre-acquisition digital revenue. The overall increase was partially offset by a decrease of approximately $3.1 million attributable to our radio segment and was primarily due to decreases in salary expense associated with furloughs and layoffs, and payroll tax expense.

Corporate expenses increased to $9.3 million for the three-month period ended December 31, 2020 from $7.9 million for the three-month period ended December 31, 2019, an increase of $1.4 million. The increase was primarily due to retroactive restoration and payments of previously reduced salaries to the levels prior to the reduction in salaries due to the COVID-19 pandemic.

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 digital business. As a result, we have operating expense, attributable to foreign currency, that is primarily related to the operations related to our digital business. We had a foreign currency gain of $1.7 million for the three-month period ended December 31, 2020 compared to a foreign currency gain of $0.2 million for the three-month period ended December 31, 2019. Foreign currency gain was primarily due to currency fluctuations that affected our digital segment operations located outside the United States.

Impairment charge related to certain FCC licenses in our radio reporting unit was $0.2 million for the three-month period ended December 31, 2020. 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.

Twelve-Month Period Ended December 31, 2020 Compared to Twelve-Month Period Ended December 31, 2019
(Unaudited)
		Twelve Months Ended
		December 31,
		2020				2019				% Change
Net revenue			344,026				273,575			26	%
Cost of revenue – digital (1)			106,928				36,757			191	%
Operating expenses (1)			153,313				173,377			(12	)%
Corporate expenses (1)			27,807				28,067			(1	)%
Depreciation and amortization			17,282				16,648			4	%
Change in fair value of contingent consideration			—				(6,478	)		(100	)%
Impairment charge			40,035				32,097			25	%
Foreign currency (gain) loss			(1,052	)			754			*
Other operating (gain) loss			(6,895	)			(5,994	)		15	%
Operating income (loss)			6,608				(1,653	)		(500	)%
Interest expense, net			(6,517	)			(10,330	)		(37	)%
Dividend income			28				918			(97	)%
Gain (loss) on debt extinguishment			—				(255	)		(100	)%
Income before income taxes			119				(11,320	)		*
Income tax (expense) benefit			(1,506	)			(8,158	)		(82	)%
Net income (loss) before equity in net income (loss) of nonconsolidated affiliates			(1,387	)			(19,478	)		(93	)%
Equity in net income (loss) of nonconsolidated affiliates			—				(234	)		(100	)%
Net income (loss)			(1,387	)			(19,712	)		(93	)%
Net (income) loss attributable to redeemable noncontrolling interest			(2,523	)			—			*
Net income (loss) attributable to common stockholders		$	(3,910	)		$	(19,712	)		(80	)%

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

Net revenue increased to $344.0 million for the year ended December 31, 2020 from $273.6 million for the year ended December 31, 2019, an increase of approximately $70.4 million. Of the overall increase, approximately $4.8 million was attributable to our television segment and was primarily due to increases in political advertising revenue and retransmission consent revenue, partially offset by decreases in local and national advertising revenue and revenue from spectrum usage rights. The decrease in local and national advertising revenue was primarily a result of the continuing economic crisis resulting from the COVID-19 pandemic, ratings declines, competitive factors with another Spanish-language broadcaster, and changing demographic preferences of audiences. We have previously noted a trend for advertising to move increasingly from traditional media, such as television, to new media, such as digital media, and we expect this trend to continue. Additionally, approximately $74.4 million of the overall increase was attributable to our digital segment and was primarily due to the acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which did not contribute to net revenue in prior periods, partially offset by a decrease in advertising revenue as a result of declines in pre-acquisition digital revenue, and the continuing economic crisis resulting from the COVID-19 pandemic. We have previously noted a trend in our domestic digital operations whereby revenue is shifting more to programmatic revenue, and this trend is now growing in markets outside the United States. As a result, advertisers are demanding more efficiency and lower cost from intermediaries like us. In response to this trend, we are offering programmatic alternatives to advertisers, which is putting pressure on margins. We expect this trend will continue in future periods, likely resulting in a permanent higher volume, lower margin business in our digital segment. The digital advertising industry remains dynamic and is continuing to undergo rapid changes in technology and competition. We expect this trend to continue and possibly accelerate. We must continue to remain vigilant to meet these dynamic and rapid changes including the need to further adjust our business strategies accordingly. No assurances can be given that such adjustments will be successful. The overall increase in net revenue was partially offset by a decrease of approximately $8.7 million attributable to our radio segment and was primarily due to decreases in local and national advertising revenue, partially offset by an increase in political advertising revenue. The decrease in local and national advertising revenue was primarily a result of the continuing economic crisis resulting from the COVID-19 pandemic, ratings declines and competitive factors with other Spanish-language broadcasters, and changing demographic preferences of audiences. We have previously noted a trend for advertising to move increasingly from traditional media, such as radio, to new media, such as digital media, and we expect this trend to continue. This trend has had a more significant impact on our radio revenue as compared to television revenue, and we expect that this trend will also continue.

Cost of revenue in our digital segment increased to $106.9 million for the year ended December 31, 2020 from $36.8 million for the year ended December 31, 2019, an increase of $70.1 million, primarily due to increased costs of revenue associated with Cisneros Interactive during the fourth quarter of 2020, following its acquisition during the fourth quarter of 2020, which did not incur cost of revenue for us in prior periods.

Operating expenses decreased to $153.3 million for the year ended December 31, 2020 from $173.4 million for the year ended December 31, 2019, a decrease of approximately $20.1 million. Of the overall decrease, approximately $3.5 million was attributable to our television segment and was primarily due to decreases in salary expense associated with furloughs and layoffs, payroll tax expense and expenses associated with the decrease in local and national advertising revenue. Additionally, approximately $1.7 million of the overall decrease was attributable to our digital segment primarily due to decreases in salary expense associated with furloughs and layoffs, and expenses associated with the decrease in advertising revenue as a result of declines in pre-acquisition digital revenue, partially offset by an increase associated with the acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which did not incur direct operating expenses for us in prior periods. Additionally, approximately $14.9 million of the overall decrease was attributable to our radio segment and was primarily due to decreases in salary expense associated with furloughs and layoffs, payroll tax expense and expenses associated with the decrease in advertising revenue.

Corporate expenses decreased to $27.8 million for the year ended December 31, 2020 from $28.1 million for the year ended December 31, 2019, a decrease of $0.3 million. The decrease was primarily due to decreases in audit fees, travel and rent expense. These decreases were partially offset by expenses for legal and financial due diligence related to the acquisition of a majority interest in Cisneros Interactive.

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 digital business. As a result, we have operating expense, attributable to foreign currency, that is primarily related to the operations related to our digital business. Foreign currency gain was $1.1 million for the year ended December 31, 2020, compared to foreign currency loss of $0.8 million for the year ended December 31, 2019, primarily due to currency fluctuations that affected our digital segment operations located outside the United States.

Impairment charge related to certain FCC licenses in our television and radio reporting units was $23.5 million and $9.0 million, respectively, for the year ended December 31, 2020. Impairment charge related to goodwill in our digital reporting unit was $0.8 million for the year ended December 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 year ended December 31, 2020.

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. We also recorded an impairment charge of $0.2 million for the year ended December 31, 2019 to reflect the fair market value of our assets held for sale.

Segment Results

The following represents selected unaudited segment information:

		Three Months Ended											Twelve Months Ended
		December 31,											December 31,
		2020				2019				% Change			2020				2019			% Change
Net Revenue
Television		$	50,516			$	36,909			37	%		$	154,456			$	149,654		3	%
Digital			104,950				20,020			424	%			143,309				68,908		108	%
Radio			16,217				13,909			17	%			46,261				55,013		(16	)%
Total		$	171,683			$	70,838			142	%		$	344,026			$	273,575		26	%
Cost of Revenue – Digital (1)		$	85,326			$	10,314			727	%		$	106,928			$	36,757		191	%
Operating Expenses (1)
Television			22,422				21,726			3	%			80,893				84,416		(4	)%
Digital			12,228				8,091			51	%			30,631				32,261		(5	)%
Radio			11,295				14,352			(21	)%			41,789				56,700		(26	)%
Total		$	45,945			$	44,169			4	%		$	153,313			$	173,377		(12	)%
Corporate Expenses (1)		$	9,296			$	7,887			18	%		$	27,807			$	28,067		(1	)%
Foreign currency (gain) loss		$	(1,725	)		$	(223	)		674	%		$	(1,052	)		$	754		*
Consolidated adjusted EBITDA (1)		$	32,646			$	11,056			195	%		$	60,419			$	41,209		47	%

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

Notice of Conference Call

Entravision Communications Corporation will hold a conference call to discuss its 2020 fourth quarter results on March 11, 2021 at 5 p.m. Eastern Time. To access the conference call, please dial (877) 407-9716 (U.S.) or (201) 493-6779 (Int’l) ten minutes prior to the start time and reference Conference ID number 13716833. The call will also be available via live webcast on the investor relations portion of the Company’s website located at www.entravision.com.

About Entravision Communications Corporation

Entravision is a diversified global media, marketing and technology company serving clients throughout the United States and in more than 20 countries across Latin America, Europe, and Asia. Entravision has 54 television stations and is the largest affiliate group of the Univision and UniMás television networks, and 48 Spanish-language radio stations that feature nationally recognized, award-winning talent. Our dynamic digital portfolio includes Entravision Digital, which serves SMBs in high-density U.S. Latino markets and provides cutting-edge mobile programmatic solutions and demand-side platforms that allow advertisers to execute performance campaigns using machine-learned bidding algorithms, along with Cisneros Interactive, a leader in digital advertising solutions in the Latin American and U.S. Hispanic markets representing major technology platforms. Shares of Entravision Class A Common Stock trade on The New York Stock Exchange under the ticker symbol: EVC. Learn more about all of our media, marketing and technology offerings at entravision.com or connect with us on LinkedIn and Facebook.

Forward Looking Statements

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

Entravision Communications Corporation
Consolidated Balance Sheets
(In thousands; unaudited)
		December 31,				December 31,
		2020				2019
ASSETS
Current assets
Cash and cash equivalents		$	119,162			$	33,123
Marketable securities			27,988				91,662
Restricted Cash			749				734
Trade receivables, net of allowance for doubtful accounts			141,963				71,406
Assets held for sale			2,141				950
Prepaid expenses and other current assets			15,557				11,557
Total current assets			307,560				209,432
Property and equipment, net			72,004				79,642
Intangible assets subject to amortization, net			49,412				16,772
Intangible assets not subject to amortization			216,653				252,544
Goodwill			57,849				46,511
Operating leases right of use asset			33,525				43,837
Other assets			7,643				7,462
Total assets		$	744,646			$	656,200
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Current maturities of long-term debt		$	3,000			$	3,000
Accounts payable and accrued expenses			124,150				53,931
Operating lease liabilities			7,290				9,056
Total current liabilities			134,440				65,987
Long-term debt, less current maturities, net of unamortized debt issuance costs			210,454				213,024
Long-term operating lease liabilities			31,775				41,387
Other long-term liabilities			3,732				3,371
Deferred income taxes			54,980				44,259
Total liabilities			435,381				368,028
Redeemable noncontrolling interest			33,285				—
Stockholders’ equity
Class A common stock			6				6
Class B common stock			2				2
Class U common stock			1				1
Additional paid-in capital			828,813				836,170
Accumulated deficit			(551,786	)			(547,876	)
Accumulated other comprehensive income (loss)			(1,056	)			(131	)
Total stockholders’ equity			275,980				288,172
Total liabilities and stockholders’ equity		$	744,646			$	656,200

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,
		2020				2019				2020				2019
Net revenue		$	171,683			$	70,838			$	344,026			$	273,575
Expenses:
Cost of revenue – digital			85,326				10,314				106,928				36,757
Direct operating expenses			31,912				30,020				104,909				119,412
Selling, general and administrative expenses			14,033				14,149				48,404				53,965
Corporate expenses			9,296				7,887				27,807				28,067
Depreciation and amortization			4,963				4,236				17,282				16,648
Change in fair value of contingent consideration			—				(4,102	)			—				(6,478	)
Impairment charge			200				654				40,035				32,097
Foreign currency (gain) loss			(1,725	)			(223	)			(1,052	)			754
Other operating (gain) loss			(1,346	)			(829	)			(6,895	)			(5,994	)
			142,659				62,106				337,418				275,228
Operating income (loss)			29,024				8,732				6,608				(1,653	)
Interest expense			(1,592	)			(3,102	)			(8,265	)			(13,683	)
Interest income			118				752				1,748				3,353
Dividend income			2				171				28				918
Gain (loss) on debt extinguishment			—				(255	)			—				(255	)
Income before income taxes			27,552				6,298				119				(11,320	)
Income tax (expense) benefit			(4,701	)			1,107				(1,506	)			(8,158	)
Income (loss) before equity in net income (loss) of nonconsolidated affiliate			22,851				7,405				(1,387	)			(19,478	)
Equity in net income (loss) of nonconsolidated affiliate			—				(45	)			—				(234	)
Net income (loss)			22,851				7,360				(1,387	)			(19,712	)
Net (income) loss attributable to redeemable noncontrolling interest			(2,523	)			—				(2,523	)			—
Net income (loss) attributable to common stockholders		$	20,328			$	7,360			$	(3,910	)		$	(19,712	)
Basic and diluted earnings per share:
Net income (loss) per share attributable to common stockholders, basic and diluted		$	0.24			$	0.09			$	(0.05	)		$	(0.23	)
Cash dividends declared per common share, basic and diluted		$	0.03			$	0.05			$	0.13			$	0.20
Weighted average common shares outstanding, basic			84,297,592				84,226,135				84,231,212				85,107,301
Weighted average common shares outstanding, diluted			85,985,630				85,449,374				84,231,212				85,107,301

Entravision Communications Corporation
Consolidated Statements of Cash Flows
(In thousands; unaudited)
		Three-Month Period								Twelve-Month Period
		Ended December 31,								Ended December 31,
		2020				2019				2020				2019
Cash flows from operating activities:
Net income (loss)		$	22,851			$	7,360			$	(1,387	)		$	(19,712	)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			4,963				4,236				17,282				16,648
Impairment charge			200				654				40,035				32,097
Deferred income taxes			2,519				(1,630	)			(6,225	)			5,311
Non-cash interest			158				166				649				881
Amortization of syndication contracts			121				131				504				505
Payments on syndication contracts			(133	)			(124	)			(458	)			(543	)
Equity in net (income) loss of nonconsolidated affiliate			—				45				—				234
Non-cash stock-based compensation			2,717				1,923				5,125				4,377
(Gain) loss on disposal of property and equipment			36				—				(731	)			158
(Gain) loss on debt extinguishment			—				255				—				255
Changes in assets and liabilities:
(Increase) decrease in trade receivables, net			(41,424	)			(2,093	)			(27,139	)			8,610
(Increase) decrease in prepaid expenses and other current assets			6,110				2,946				12,823				2,102
Increase (decrease) in accounts payable, accrued expenses and other liabilities			39,614				(5,816	)			22,971				(19,384	)
Net cash provided by operating activities			37,732				8,053				63,449				31,539
Cash flows from investing activities:
Proceeds from sale of property and equipment and intangibles			—				—				5,089				—
Purchases of property and equipment			(1,319	)			(4,101	)			(9,060	)			(25,283	)
Purchases of intangibles			—				(2,300	)			(158	)			(2,300	)
Purchase of a businesses, net of cash acquired			(21,261	)			—				(21,261	)			—
Purchases of marketable securities			—				—				—				(1,400	)
Proceeds from marketable securities			25,000				15,766				63,480				43,647
Purchases of investments			—				—				—				(300	)
Deposits on acquisition			—				147				—				—
Net cash provided by (used in) investing activities			2,420				9,512				38,090				14,364
Cash flows from financing activities:
Tax payments related to shares withheld for share-based compensation plans			(1,411	)			(915	)			(1,426	)			(1,688	)
Payments on long-term debt			(750	)			(25,750	)			(3,000	)			(28,000	)
Dividends paid			(2,103	)			(4,195	)			(10,531	)			(16,962	)
Repurchase of Class A common stock			—				(2,208	)			(525	)			(12,565	)
Payments of capitalized debt offering and issuance costs			—				—				—				(225	)
Net cash used in financing activities			(4,264	)			(33,068	)			(15,482	)			(59,440	)
Effect of exchange rates on cash, cash equivalents and restricted cash			4				(79	)			(3	)			(71	)
Net increase (decrease) in cash, cash equivalents and restricted cash			35,892				(15,582	)			86,054				(13,608	)
Cash, cash equivalents and restricted cash:
Beginning			84,019				49,439				33,857				47,465
Ending		$	119,911			$	33,857			$	119,911			$	33,857

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,
		2020				2019				2020				2019
Consolidated adjusted EBITDA (1)		$	32,646			$	11,056			$	60,419			$	41,209
EBITDA attributable to redeemable noncontrolling interest			3,436				—				3,436				—
Interest expense			(1,592	)			(3,102	)			(8,265	)			(13,683	)
Interest income			118				752				1,748				3,353
Gain (loss) on debt extinguishment			—				(255	)			—				(255	)
Income tax (expense) benefit			(4,701	)			1,107				(1,506	)			(8,158	)
Amortization of syndication contracts			(121	)			(131	)			(504	)			(505	)
Payments on syndication contracts			133				124				458				543
Non-cash stock-based compensation included in direct operating expenses			(865	)			(408	)			(1,247	)			(732	)
Non-cash stock-based compensation included in corporate expenses			(1,852	)			(1,515	)			(3,878	)			(3,645	)
Depreciation and amortization			(4,963	)			(4,236	)			(17,282	)			(16,648	)
Change in fair value of contingent consideration			—				4,102				—				6,478
Non-recurring severance charge			(536	)			(435	)			(1,654	)			(2,250	)
Dividend income			2				171				28				918
Other income (loss)			1,346				829				6,895				5,994
Impairment charge			(200	)			(654	)			(40,035	)			(32,097	)
Equity in net income (loss) of nonconsolidated affiliates			—				(45	)			—				(234	)
Net (income) loss attributable to redeemable noncontrolling interest			(2,523	)			—				(2,523	)			—
Net income (loss) attributable to common stockholders			20,328				7,360				(3,910	)			(19,712	)
Depreciation and amortization			4,963				4,236				17,282				16,648
Impairment charge			200				654				40,035				32,097
Deferred income taxes			2,519				(1,630	)			(6,225	)			5,311
Amortization of debt issuance costs			158				166				649				881
Amortization of syndication contracts			121				131				504				505
Payments on syndication contracts			(133	)			(124	)			(458	)			(543	)
Equity in net (income) loss of nonconsolidated affiliate			—				45				—				234
Non-cash stock-based compensation			2,717				1,923				5,125				4,377
(Gain) loss on disposal of property and equipment			36				—				(731	)			158
(Gain) loss on debt extinguishment			—				255				—				255
Net (income) loss attributable to redeemable noncontrolling interest			2,523				—				2,523				—
Changes in assets and liabilities:
(Increase) decrease in accounts receivable			(41,424	)			(2,093	)			(27,139	)			8,610
(Increase) decrease in prepaid expenses and other assets			6,110				2,946				12,823				2,102
Increase (decrease) in accounts payable, accrued expenses and other liabilities			39,614				(5,816	)			22,971				(19,384	)
Net cash provided by (used in) operating activities		$	37,732			$	8,053			$	63,449			$	31,539

(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,
		2020				2019				2020				2019
Consolidated adjusted EBITDA (1)		$	32,646			$	11,056			$	60,419			$	41,209
Net, cash interest expense (1)			(1,316	)			(2,184	)			(5,868	)			(9,449	)
Dividend income			2				171				28				918
Cash paid for income taxes			(2,182	)			(523	)			(7,731	)			(2,847	)
Capital expenditures (2)			(1,319	)			(4,101	)			(9,060	)			(25,283	)
FCC reimbursement			1,346				829				6,895				5,994
Non-recurring cash severance charge			(536	)			(435	)			(1,654	)			(2,250	)
Free cash flow (1)			28,641				4,813				43,029				8,292
Capital expenditures (2)			1,319				4,101				9,060				25,283
EBITDA attributable to redeemable noncontrolling interest			3,436				—				3,436				—
Change in fair value of contingent consideration			—				4,102				—				6,478
(Gain) loss on disposal of property and equipment			36				—				(731	)			158
Changes in assets and liabilities:
(Increase) decrease in accounts receivable			(41,424	)			(2,093	)			(27,139	)			8,610
(Increase) decrease in prepaid expenses and other assets			6,110				2,946				12,823				2,102
Increase (decrease) in accounts payable, accrued expenses and other liabilities			39,614				(5,816	)			22,971				(19,384	)
Cash Flows From Operating Activities		$	37,732			$	8,053			$	63,449			$	31,539

(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 source version on businesswire.com:

https://www.businesswire.com/news/home/20210311005960/en/

Christopher T. Young

Chief Financial Officer

Entravision Communications Corporation

310-447-3870

Kimberly Esterkin

ADDO Investor Relations

310-829-5400

evc@addoir.com

Source: Entravision Communications Corporation