Entravision Communications Corporation Reports First Quarter 2022 Results

Entravision Communications Corporation (NYSE: EVC), a leading global advertising solutions, media and technology company, today announced financial results for the three-month period ended March 31, 2022.

First Quarter 2022 Highlights

  • All-time first quarter record revenue, EBITDA and free cash flow
  • Net revenue up 32% over the prior-year quarter
  • Net income attributable to common stockholders down 65% over the prior-year quarter
  • Consolidated adjusted EBITDA up 28% over the prior-year quarter
  • Operating cash flow up 127% over the prior-year quarter
  • Free cash flow up 10% over the prior-year quarter
  • Quarterly cash dividend of $0.025 per share
  • Repurchased $7.1 million in shares under the Company's $20 million share repurchase program
  • Post quarter entered into a definitive agreement to make an investment in Jack of Digital

“Entravision begins 2022 on very solid footing, with net revenue for the first quarter totaling $197.2 million, up 32% year-over year. Adjusted EBITDA also improved to total $18.1 million, an increase of 28% over the prior-year period,” said Walter Ulloa, Chairman and Chief Executive Officer. “Importantly, even as our top line continues to grow, we have maintained a lean, efficient cost structure, helping to drive our cash flow as well as our ability to provide consistent returns to our shareholders."

Mr. Ulloa continued, “Our strength during the first quarter was largely driven by revenue growth of 51% in our digital segment, which comprised 78% of consolidated revenue. Our broadcast businesses, and, in particular, audio, helped drive our strong margins and cash flow. Simultaneously, our strategic expansion of our commercial partnerships with some of the world’s leading technology platforms has positioned us at the forefront of digital innovation across emerging economies, including Latin America, Southeast Asia, Africa, and Pakistan when we complete our investment in Jack of Digital. We are excited about the enormous opportunities that lie in front of us and look forward to sharing our progress throughout the year."

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, 2022 to shareholders of record as of the close of business on June 16, 2022, and the common stock will trade ex-dividend on June 15, 2022. The Company currently anticipates that future cash dividends will be paid on a quarterly basis; however, any decision to pay future cash dividends will be subject to approval by the Board.

Share Repurchase Program

On March 1, 2022, the Board of Directors approved the repurchase of up to $20 million of the Company’s common stock. Under this share repurchase program, the Company is authorized to purchase shares from time to time through open market purchases or negotiated purchases, subject to market conditions and other factors. On the same date, the Board terminated the Company’s previous share repurchase program of the Company’s common stock. During the first quarter the Company repurchased $7.1 million of its Class A common stock.

Investment in Jack of Digital

As previously announced, the Company has entered into a definitive agreement to acquire a strategic stake in Jack of Digital, a digital marketing services company that serves as the exclusive advertising sales partner of TikTok in Pakistan. Subject to regulatory approvals and other pre-closing conditions, the Company anticipates that the investment will be completed during the second quarter of 2022. With this investment, the Company enhances its presence in South Asia.

Non-GAAP Financial Measures

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

Unaudited Financial Highlights (In thousands, except share and per share data)

 

Three-Month Period

 

 

Ended March 31,

 

 

2022

 

 

2021

 

 

% Change

 

Net revenue

$

197,172

 

 

$

148,880

 

 

 

32

%

Cost of revenue - digital (1)

 

129,891

 

 

 

84,756

 

 

 

53

%

Operating expenses (2)

 

43,862

 

 

 

40,414

 

 

 

9

%

Corporate expenses (3)

 

8,724

 

 

 

7,158

 

 

 

22

%

Foreign currency (gain) loss

 

(847

)

 

 

586

 

 

*

 

 

 

 

 

 

 

 

 

 

Consolidated adjusted EBITDA (4)

 

18,113

 

 

 

14,195

 

 

 

28

%

 

 

 

 

 

 

 

 

 

Free cash flow (5)

$

14,327

 

 

$

13,029

 

 

 

10

%

 

 

 

 

 

 

 

 

 

Net income (loss)

$

1,887

 

 

$

7,002

 

 

 

(73

)%

Net (income) loss attributable to redeemable noncontrolling interest

$

-

 

 

$

(1,573

)

 

*

 

Net income (loss) attributable to common stockholders

$

1,887

 

 

$

5,429

 

 

 

(65

)%

 

 

 

 

 

 

 

 

 

Net income (loss) per share attributable to common stockholders, basic and diluted

$

0.02

 

 

$

0.06

 

 

 

(67

)%

Weighted average common shares outstanding, basic

 

86,522,378

 

 

 

85,041,628

 

 

 

 

Weighted average common shares outstanding, diluted

 

88,630,216

 

 

 

86,986,581

 

 

 

 

(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 include direct operating and selling, general and administrative expenses. Included in operating expenses are $1.0 million and $0.3 million of non-cash stock-based compensation for the three-month periods ended March 31, 2022 and 2021, respectively.

(3)

Corporate expenses include $1.6 million and $0.8 million of non-cash stock-based compensation for the three-month periods ended March 31, 2022 and 2021, respectively.

(4)

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

(5)

Free cash flow is defined as consolidated adjusted EBITDA less cash paid for income taxes, net interest expense, capital expenditures and non-recurring cash expenses plus dividend income, and other operating gain (loss). Net interest expense is defined as interest expense, less non-cash interest expense relating to amortization of debt finance costs, and less interest income.

Unaudited Financial Results (In thousands)

 

Three-Month Period

 

 

Ended March 31,

 

 

2022

 

 

2021

 

 

% Change

 

Net revenue

$

197,172

 

 

$

148,880

 

 

 

32

%

Cost of revenue - digital (1)

 

129,891

 

 

 

84,756

 

 

 

53

%

Operating expenses (1)

 

43,862

 

 

 

40,414

 

 

 

9

%

Corporate expenses (1)

 

8,724

 

 

 

7,158

 

 

 

22

%

Depreciation and amortization

 

6,395

 

 

 

5,184

 

 

 

23

%

Change in fair value of contingent consideration

 

5,100

 

 

 

-

 

 

*

 

Impairment charge

 

-

 

 

 

1,326

 

 

 

(100

)%

Foreign currency (gain) loss

 

(847

)

 

 

586

 

 

*

 

Other operating (gain) loss

 

(119

)

 

 

(1,913

)

 

 

(94

)%

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

4,166

 

 

 

11,369

 

 

 

(63

)%

Interest expense, net

 

(1,430

)

 

 

(1,577

)

 

 

(9

)%

Dividend income

 

3

 

 

 

2

 

 

 

50

%

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

2,739

 

 

 

9,794

 

 

 

(72

)%

Income tax benefit (expense)

 

(852

)

 

 

(2,792

)

 

 

(69

)%

 

 

 

 

 

 

 

 

 

Net income (loss)

 

1,887

 

 

 

7,002

 

 

 

(73

)%

Net (income) loss attributable to redeemable noncontrolling interest

 

-

 

 

 

(1,573

)

 

*

 

Net income (loss) attributable to common stockholders

$

1,887

 

 

$

5,429

 

 

 

(65

)%

(1)

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

Net revenue in the first quarter of 2022 totaled $197.2 million, up 32% from $148.9 million in the prior-year period. Of the overall increase, approximately $52.2 million was attributable to our digital segment and was primarily due to advertising revenue growth from our digital commercial partnerships business and our acquisitions of MediaDonuts and 365 Digital during the third and fourth quarters of 2021, respectively, both of which did not contribute to net revenue in the comparable period ended March 31, 2021. In addition, of the overall increase, approximately $1.3 million was attributable to our audio segment primarily due to increases in local advertising revenue and political advertising revenue. The overall increase was partially offset by a decrease of approximately $5.2 million attributable to our television segment, primarily due to decreases in local and national advertising revenue, which was mainly attributed to the expiration of our Univision and UniMás network affiliation agreements in Orlando, Tampa and Washington, D.C. on December 31, 2021. Additionally, the decrease in our television segment was attributed to a decrease in revenue from spectrum usage rights, and a decrease in retransmission consent revenue, partially offset by an increase in political advertising revenue.

Cost of revenue in the first quarter of 2022 totaled $129.9 million, up 53% from $84.8 million in the prior-year period. The increase was primarily due to increased costs of revenue related to advertising revenue growth from our digital commercial partnerships business, and our acquisitions of MediaDonuts and 365 Digital during the third and fourth quarters of 2021, respectively, both of which did not incur cost of revenue for us in the comparable period ended March 31, 2021.

Operating expenses in the first quarter of 2022 totaled $43.9 million, up 9% from $40.4 million in the prior-year period. Of the overall increase, approximately $4.4 million was attributable to our digital segment and was primarily due to an increase in expenses associated with the increase in digital advertising revenue, an increase in salary expense and our acquisitions of MediaDonuts and 365 Digital during the third and fourth quarters of 2021, respectively, both of which did not incur operating expenses for us in the comparable period ended March 31, 2021. The overall increase was partially offset by a decrease of approximately $0.7 million that was attributable to our television segment primarily due to a decrease in expenses associated with the decrease in local and national advertising revenue, and a decrease of approximately $0.3 million that was attributable to our audio segment primarily due to a decrease in rating services expense.

Corporate expenses in the first quarter of 2022 totaled $8.7 million, up 22% from $7.2 million in the prior-year period. The increase was primarily due to increases in non-cash stock-based compensation, salaries, and audit fees.

Balance Sheet and Related Metrics

Cash and marketable securities as of March 31, 2022 totaled approximately $211.6 million. Total debt was $211.8 million. Net of $75 million of cash and marketable securities, total leverage as defined in the Company’s credit agreement was 1.5 times as of March 31, 2022. Net of total cash and marketable securities, total leverage was 0.0 times.

Unaudited Segment Results (In thousands)

 

Three-Month Period

 

 

Ended March 31,

 

 

2022

 

 

2021

 

 

% Change

 

Net Revenue

 

 

 

 

 

 

 

 

Digital

$

153,711

 

 

$

101,482

 

 

 

51

%

Television

 

30,867

 

 

 

36,091

 

 

 

(14

)%

Audio

 

12,594

 

 

 

11,307

 

 

 

11

%

Total

$

197,172

 

 

$

148,880

 

 

 

32

%

 

 

 

 

 

 

 

 

 

Cost of Revenue - digital (1)

 

 

 

 

 

 

 

 

Digital

$

129,891

 

 

$

84,756

 

 

 

53

%

 

 

 

 

 

 

 

 

 

Operating Expenses (1)

 

 

 

 

 

 

 

 

Digital

 

15,235

 

 

 

10,850

 

 

 

40

%

Television

 

19,240

 

 

 

19,884

 

 

 

(3

)%

Audio

 

9,387

 

 

 

9,680

 

 

 

(3

)%

Total

$

43,862

 

 

$

40,414

 

 

 

9

%

 

 

 

 

 

 

 

 

 

Corporate Expenses (1)

$

8,724

 

 

$

7,158

 

 

 

22

%

 

 

 

 

 

 

 

 

 

Consolidated adjusted EBITDA (1)

$

18,113

 

 

$

14,195

 

 

 

28

%

(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 2022 results on Thursday, May 5, 2022 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 13728063. The call will also be available via live webcast on the investor relations portion of the Company's website located at www.entravision.com.

About Entravision Communications Corporation

Entravision is a leading global advertising, media and ad-tech solutions company connecting brands to consumers by representing top platforms and publishers. Our dynamic portfolio includes digital, television and audio offerings. Digital, our largest revenue segment, is comprised of four business units: our digital sales representation business; Smadex, our programmatic ad purchasing platform; our branding and mobile performance solutions business; and our digital audio business. Through our digital sales representation business, we connect global media companies such as Meta, Twitter, TikTok and Spotify with advertisers in primarily emerging growth markets worldwide. Smadex is our mobile-first demand side platform, enabling advertisers to execute performance campaigns using machine learning. We also offer a branding and mobile performance solutions business, which provides managed services to advertisers looking to connect with global consumers, primarily on mobile devices, and our digital audio business provides digital audio advertising solutions for advertisers in the Americas. In addition to digital, Entravision has 49 television stations and is the largest affiliate group of the Univision and UniMás television networks. Entravision also manages 46 primarily Spanish-language radio stations that feature nationally recognized, Emmy award-winning talent. Shares of Entravision Class A Common Stock trade on the NYSE under ticker: EVC. Learn more about our offerings at entravision.com or connect with us on LinkedIn and Facebook.

Forward-Looking Statements

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

(Financial Table Follows)

Entravision Communications Corporation

Consolidated Statements of Operations

(In thousands, except share and per share data)

(Unaudited)

 

 

 

Three-Month Period

 

 

 

Ended March 31,

 

 

 

2022

 

 

2021

 

Net revenue

 

$

197,172

 

 

$

148,880

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

Cost of revenue - digital

 

 

129,891

 

 

 

84,756

 

Direct operating expenses

 

 

27,823

 

 

 

26,561

 

Selling, general and administrative expenses

 

 

16,039

 

 

 

13,853

 

Corporate expenses

 

 

8,724

 

 

 

7,158

 

Depreciation and amortization

 

 

6,395

 

 

 

5,184

 

Change in fair value of contingent consideration

 

 

5,100

 

 

 

-

 

Impairment charge

 

 

-

 

 

 

1,326

 

Foreign currency (gain) loss

 

 

(847

)

 

 

586

 

Other operating (gain) loss

 

 

(119

)

 

 

(1,913

)

 

 

 

193,006

 

 

 

137,511

 

Operating income (loss)

 

 

4,166

 

 

 

11,369

 

Interest expense

 

 

(1,836

)

 

 

(1,717

)

Interest income

 

 

406

 

 

 

140

 

Dividend income

 

 

3

 

 

 

2

 

Income (loss) before income taxes

 

 

2,739

 

 

 

9,794

 

Income tax benefit (expense)

 

 

(852

)

 

 

(2,792

)

 

 

 

 

 

 

 

Net income (loss)

 

 

1,887

 

 

 

7,002

 

Net (income) loss attributable to redeemable noncontrolling interest

 

 

-

 

 

 

(1,573

)

Net income (loss) attributable to common stockholders

 

$

1,887

 

 

$

5,429

 

 

 

 

 

 

 

 

Basic and diluted earnings per share:

 

 

 

 

 

 

Net income (loss) per share attributable to common stockholders, basic and diluted

 

$

0.02

 

 

$

0.06

 

 

 

 

 

 

 

 

Cash dividends declared per common share, basic and diluted

 

$

0.03

 

 

$

0.03

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic

 

 

86,522,378

 

 

 

85,041,628

 

Weighted average common shares outstanding, diluted

 

 

88,630,216

 

 

 

86,986,581

 

Entravision Communications Corporation

Consolidated Balance Sheets

(In thousands; unaudited)

 

 

 

March 31,

 

 

December 31,

 

 

 

2022

 

 

2021

 

ASSETS

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

126,574

 

 

$

185,094

 

Marketable securities

 

 

85,010

 

 

 

-

 

Restricted cash

 

 

749

 

 

 

749

 

Trade receivables, net of allowance for doubtful accounts

 

 

173,419

 

 

 

201,747

 

Assets held for sale

 

 

1,963

 

 

 

1,963

 

Prepaid expenses and other current assets

 

 

36,341

 

 

 

18,925

 

Total current assets

 

 

424,056

 

 

 

408,478

 

Property and equipment, net

 

 

60,174

 

 

 

62,498

 

Intangible assets subject to amortization, net

 

 

61,476

 

 

 

64,034

 

Intangible assets not subject to amortization

 

 

209,053

 

 

 

209,053

 

Goodwill

 

 

71,708

 

 

 

71,708

 

Deferred income taxes

 

 

1,462

 

 

 

1,462

 

Operating leases right of use asset

 

 

25,596

 

 

 

25,582

 

Other assets

 

 

8,084

 

 

 

8,527

 

Total assets

 

$

861,609

 

 

$

851,342

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Current maturities of long-term debt

 

$

4,947

 

 

$

4,903

 

Accounts payable and accrued expenses

 

 

222,610

 

 

 

212,655

 

Operating lease liabilities

 

 

6,808

 

 

 

7,304

 

Total current liabilities

 

 

234,365

 

 

 

224,862

 

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

 

 

206,816

 

 

 

207,416

 

Long-term operating lease liabilities

 

 

21,505

 

 

 

20,988

 

Other long-term liabilities

 

 

79,076

 

 

 

72,930

 

Deferred income taxes

 

 

68,092

 

 

 

68,220

 

Total liabilities

 

 

609,854

 

 

 

594,416

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

 

Class A common stock

 

 

6

 

 

 

6

 

Class B common stock

 

 

2

 

 

 

2

 

Class U common stock

 

 

1

 

 

 

1

 

Additional paid-in capital

 

 

773,613

 

 

 

780,388

 

Accumulated deficit

 

 

(520,607

)

 

 

(522,494

)

Accumulated other comprehensive income (loss)

 

 

(1,260

)

 

 

(977

)

Total stockholders' equity

 

 

251,755

 

 

 

256,926

 

Total liabilities and stockholders' equity

 

$

861,609

 

 

$

851,342

 

Entravision Communications Corporation

Consolidated Statements of Cash Flows

(In thousands; unaudited)

 

 

 

Three-Month Period

 

 

 

Ended March 31,

 

 

 

2022

 

 

2021

 

Cash flows from operating activities:

 

 

 

 

 

 

Net income (loss)

 

$

1,887

 

 

$

7,002

 

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

 

 

 

 

 

 

Depreciation and amortization

 

 

6,395

 

 

 

5,184

 

Impairment charge

 

 

 

 

 

1,326

 

Deferred income taxes

 

 

(359

)

 

 

2,987

 

Non-cash interest

 

 

280

 

 

 

139

 

Amortization of syndication contracts

 

 

116

 

 

 

119

 

Payments on syndication contracts

 

 

(118

)

 

 

(124

)

Non-cash stock-based compensation

 

 

2,573

 

 

 

1,071

 

(Gain) loss on disposal of property and equipment

 

 

(151

)

 

 

 

Change in fair value of contingent consideration

5,100

Changes in assets and liabilities:

 

 

 

 

 

 

(Increase) decrease in accounts receivable

 

 

29,380

 

 

 

9,927

 

(Increase) decrease in prepaid expenses and other assets

 

 

(2,405

)

 

 

1,177

 

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

 

 

10,521

 

 

 

(5,356

)

Net cash provided by operating activities

 

 

53,219

 

 

 

23,452

 

Cash flows from investing activities:

 

 

 

 

 

 

Proceeds from sale of property and equipment and intangibles

 

 

164

 

 

 

 

Purchases of property and equipment

 

 

(1,547

)

 

 

(1,838

)

Purchases of marketable securities

 

 

(85,517

)

 

 

 

Proceeds from marketable securities

 

 

 

 

 

12,120

 

Net cash provided by investing activities

 

 

(86,900

)

 

 

10,282

 

Cash flows from financing activities:

 

 

 

 

 

 

Proceeds from stock option exercises

 

 

218

 

 

 

 

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

 

 

(257

)

 

 

(9

)

Payments on long-term debt

 

 

(750

)

 

 

(750

)

Dividends paid

 

 

(2,167

)

 

 

(2,126

)

Repurchase of Class A common stock

 

 

(7,142

)

 

 

 

Payment of contingent consideration

 

 

(14,730

)

 

 

 

Principal payments under finance lease obligation

 

 

(10

)

 

 

 

Net cash used in financing activities

 

 

(24,838

)

 

 

(2,885

)

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

 

 

(1

)

 

 

(24

)

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

 

 

(58,520

)

 

 

30,825

 

Cash, cash equivalents and restricted cash:

 

 

 

 

 

 

Beginning

 

 

185,843

 

 

 

119,911

 

Ending

 

$

127,323

 

 

$

150,736

 

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,

 

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

Consolidated adjusted EBITDA (1)

 

$

18,113

 

 

$

14,195

 

EBITDA attributable to redeemable noncontrolling interest

 

 

-

 

 

 

2,837

 

Interest expense

 

 

(1,836

)

 

 

(1,717

)

Interest income

 

 

406

 

 

 

140

 

Dividend income

 

 

3

 

 

 

2

 

Income tax expense

 

 

(852

)

 

 

(2,792

)

Amortization of syndication contracts

 

 

(116

)

 

 

(119

)

Payments on syndication contracts

 

 

118

 

 

 

124

 

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

 

 

(958

)

 

 

(316

)

Non-cash stock-based compensation included in corporate expenses

 

 

(1,615

)

 

 

(755

)

Depreciation and amortization

 

 

(6,395

)

 

 

(5,184

)

Change in fair value of contingent consideration

 

 

(5,100

)

 

 

-

 

Impairment charge

 

 

-

 

 

 

(1,326

)

Other operating gain (loss)

 

 

119

 

 

 

1,913

 

Net (income) loss attributable to redeemable noncontrolling interest

 

 

-

 

 

 

(1,573

)

Net income (loss) attributable to common stockholders

 

 

1,887

 

 

 

5,429

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

6,395

 

 

 

5,184

 

Impairment charge

 

 

-

 

 

 

1,326

 

Deferred income taxes

 

 

(359

)

 

 

2,987

 

Non-cash interest

 

 

280

 

 

 

139

 

Amortization of syndication contracts

 

 

116

 

 

 

119

 

Payments on syndication contracts

 

 

(118

)

 

 

(124

)

Non-cash stock-based compensation

 

 

2,573

 

 

 

1,071

 

(Gain) loss on disposal of property and equipment

 

 

(151

)

 

 

-

 

Change in fair value of contingent consideration

5,100

-

Net income (loss) attributable to redeemable noncontrolling interest

 

 

-

 

 

 

1,573

 

Changes in assets and liabilities:

 

 

 

 

 

 

(Increase) decrease in accounts receivable

 

 

29,380

 

 

 

9,927

 

(Increase) decrease in prepaid expenses and other assets

 

 

(2,405

)

 

 

1,177

 

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

 

 

10,521

 

 

 

(5,356

)

Cash flows from operating activities

 

 

53,219

 

 

 

23,452

 

(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,

 

 

 

2022

 

 

2021

 

Consolidated adjusted EBITDA (1)

 

$

18,113

 

 

$

14,195

 

Net interest expense (1)

 

 

(1,150

)

 

 

(1,438

)

Dividend income

 

 

3

 

 

 

2

 

Cash paid for income taxes

 

 

(1,211

)

 

 

195

 

Capital expenditures (2)

 

 

(1,547

)

 

 

(1,838

)

Other operating gain (loss)

 

 

119

 

 

 

1,913

 

Free cash flow (1)

 

 

14,327

 

 

 

13,029

 

 

 

 

 

 

 

 

Capital expenditures (2)

 

 

1,547

 

 

 

1,838

 

EBITDA attributable to redeemable noncontrolling interest

 

 

-

 

 

 

2,837

 

(Gain) loss on disposal of property and equipment

 

 

(151

)

 

 

-

 

Changes in assets and liabilities:

 

 

 

 

 

 

(Increase) decrease in accounts receivable

 

 

29,380

 

 

 

9,927

 

(Increase) decrease in prepaid expenses and other assets

 

 

(2,405

)

 

 

1,177

 

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

 

 

10,521

 

 

 

(5,356

)

Cash Flows From Operating Activities

 

$

53,219

 

 

$

23,452

 

(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.

 

Contacts

Christopher T. Young

Chief Financial Officer

Entravision Communications Corporation

310-447-3870

Kimberly Esterkin

ADDO Investor Relations

310-829-5400

evc@addo.com

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