Entravision Communications Corporation Reports Fourth Quarter And Full Year 2019 Results
SANTA MONICA, Calif., March 5, 2020 /PRNewswire/ -- Entravision Communications Corporation (NYSE: EVC) today reported financial results for the three- and twelve-month periods ended December 31, 2019.
Historical results, which are attached, are in thousands of U.S. dollars (except share and per share data). This press release contains certain non-GAAP financial measures as defined by SEC Regulation G. The GAAP financial measure most directly comparable to each of these non-GAAP financial measures, and a table reconciling each of these non-GAAP financial measures to its most directly comparable GAAP financial measure is included beginning on page 11. Unaudited financial highlights are as follows:
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2019 2018 % Change 2019 2018 % Change
Net revenue $
70,838 $
82,073 (14) $
273,575 $
297,815 (8)
% %
Cost of revenue - digital media (1) 10,314 9,847 5 36,757 45,096 (18)
% %
Operating expenses (2) 44,169 44,568 (1) 173,377 176,777 (2)
% %
Corporate expenses (3) 7,887 7,711 2 28,067 26,865 4
% %
Foreign currency (gain) loss (223) 1,085
* 754 1,616 (53)
%
Consolidated adjusted EBITDA (4) 11,056 20,936 (47) 41,209 54,038 (24)
% %
Free cash flow (5) $
4,813 $
12,237 (61) $
8,292 $
25,001 (67)
% %
Net income (loss) $
7,360 $
6,913 6
% $
(19,712) $
12,161
*
Net income (loss) per share, basic $
0.09 $
0.08 13
% $
(0.23) $
0.14
*
Net income (loss) per share, diluted $
0.09 $
0.08 13
% $
(0.23) $
0.13
*
Weighted average common shares 84,226,135 88,357,076 85,107,301 89,115,997
outstanding, basic
Weighted average common shares 85,449,374 89,598,683 86,224,517 90,328,583
outstanding, diluted
(1) Cost of revenue - digital media consists
primarily of the costs of online media
acquired from third-party publishers.
Media cost is classified as cost of
revenue in the period in which the
corresponding revenue is recognized.
(2) For purposes of presentation in this
table, the operating expenses line item
includes direct operating and selling,
general and administrative expenses.
Included in operating expenses are $0.4
million and $0.3 million of non-cash
stock-based compensation for the
three-month periods ended December 31,
2019 and 2018, respectively, and $0.7
million of non-cash stock-based
compensation for each of the twelve-
month periods ended December 31, 2019
and 2018. Also for purposes of
presentation in this table, the
operating expenses line item does not
include corporate expenses, foreign
currency (gain) loss, depreciation and
amortization, impairment charge, gain
(loss) on sale of assets, gain (loss)
on debt extinguishment, other income
(loss) and change in fair value of
contingent consideration.
(3) Corporate expenses include $1.5 million
and $1.8 million of non-cash stock-
based compensation for the three-month
periods ended December 31, 2019 and
2018, respectively, and $3.6 million
and $5.1 million of non-cash stock-
based compensation for the twelve-
month periods ended December 31, 2019
and 2018, respectively.
(4) Consolidated adjusted EBITDA means net
income (loss) plus gain (loss) on sale
of assets, depreciation and
amortization, non-cash impairment
charge, non-cash stock-based
compensation included in operating and
corporate expenses, net interest
expense, other income (loss), gain
(loss) on debt extinguishment, income
tax (expense) benefit, equity in net
income (loss) of nonconsolidated
affiliate, non-cash losses,
syndication programming amortization
less syndication programming payments,
revenue from the Federal Communications
Commission, or FCC, spectrum incentive
auction less related expenses, expenses
associated with investments,
acquisitions and dispositions and
certain pro-forma cost savings. We use
the term consolidated adjusted EBITDA
because that measure is defined in the
agreement governing our current credit
facility ("the 2017 Credit Facility")
and does not include gain (loss) on
sale of assets, depreciation and
amortization, non-cash impairment
charge, non-cash stock-based
compensation, net interest expense,
other income (loss), gain (loss) on
debt extinguishment, income tax
(expense) benefit, equity in net income
(loss) of nonconsolidated affiliate,
non-cash losses, syndication
programming amortization less
syndication programming payments,
revenue from FCC spectrum incentive
auction less related expenses, expenses
associated with investments,
acquisitions and dispositions and
certain pro-forma cost savings.
(5) Free cash flow is defined as
consolidated adjusted EBITDA less cash
paid for income taxes, net interest
expense, capital expenditures and non-
recurring cash expenses plus dividend
income, FCC reimbursement for broadcast
television repack and revenue from FCC
auction for broadcast spectrum less
related cash expenses. Net interest
expense is defined as interest expense,
less non-cash interest expense
relating to amortization of debt
finance costs, and less interest
income.
Commenting on the Company's earnings results, Walter F. Ulloa, Chairman and Chief Executive Officer, said, "Our fourth quarter results were impacted by declines in our television and radio segments compared to the prior year. However, we did achieve growth in our digital segment compared to the fourth quarter of 2018. We continue to maintain a solid balance sheet and return capital to our shareholders through our share repurchase program and dividend. Looking ahead, we remain well positioned to build on our success in further attracting Latino and other audiences worldwide, as we execute our multiplatform strategy to the benefit of our shareholders."
Quarterly Cash Dividend
The Company announced today that its Board of Directors has approved a quarterly cash dividend to shareholders of $0.05 per share of the Company's Class A, Class B and Class U common stock, in an aggregate amount of approximately $4.2 million. The quarterly dividend will be payable on March 31, 2020 to shareholders of record as of the close of business on March 16, 2020, and the common stock will trade ex-dividend on March 13, 2020. As previously announced, the Company currently anticipates that future cash dividends will be paid on a quarterly basis; however, any decision to pay future cash dividends will be subject to approval by the Board.
Financial Results
Three-Month Period Ended December 31, 2019 Compared to Three-Month Period Ended December 31, 2018
(Unaudited)
Three Months Ended
December 31,
2019 2018 % Change
Net revenue 70,838 82,073 (14)
%
Cost of revenue - digital media (1) 10,314 9,847 5
%
Operating expenses (1) 44,169 44,568 (1)
%
Corporate expenses (1) 7,887 7,711 2
%
Depreciation and amortization 4,236 4,221 0
%
Change in fair value of contingent consideration (4,102) (2,275) 80
%
Impairment charge 654 *
Foreign currency (gain) loss (223) 1,085 *
Other operating (gain) loss (829) (565) 47
%
Operating income (loss) 8,732 17,481 (50)
%
Interest expense, net (2,350) (3,261) (28)
%
Dividend income 171 473 (64)
%
Gain (loss) on debt extinguishment (255) (550) (54)
%
Impairment loss on investment (1,320) (100)
%
Income before income taxes 6,298 12,823 (51)
%
Income tax (expense) benefit 1,107 (4,713) *
Net income (loss) before equity in net income (loss) of nonconsolidated 7,405 8,110 (9)
%
affiliates
Equity in net income (loss) of nonconsolidated affiliates (45) (1,197) (96)
%
Net income (loss) $
7,360 $
6,913 6
%
(1) Cost of revenue, operating expenses and corporate expenses are defined on page 1.
Net revenue decreased to $70.8 million for the three-month period ended December 31, 2019 from $82.1 million for the three-month period ended December 31, 2018, a decrease of $11.3 million. Of the overall decrease, approximately $8.8 million was attributable to our television segment and was primarily due to a decrease in political advertising revenue, which was not material in 2019, and decreases in national and local advertising revenue, as a result primarily of ratings declines, competitive factors with other Spanish-language broadcasters, and changing demographic preferences of audiences. Additionally, as we have previously noted, there is a trend for advertising to move increasingly from traditional media, such as television, to new media, such as digital media, and we expect this trend to continue. In addition, approximately $2.9 million of the overall decrease was attributable to our radio segment and was primarily due to a decrease in political advertising revenue, which was not material in 2019, and decreases in national and local advertising revenue, as a result primarily of ratings declines, competitive factors with other Spanish-language broadcasters, and changing demographic preferences of audiences. Additionally, as we have previously noted, there is a trend for advertising to move increasingly from traditional media, such as radio, to new media, such as digital media, and we expect this trend to continue. This overall decrease was partially offset by an increase of approximately $0.3 million that was attributable to our digital segment.
Cost of revenue in our digital media segment increased to $10.3 million for the three-month period ended December 31, 2019 from $9.8 million for the three-month period ended December 31, 2018, an increase of $0.5 million. The increase was primarily due to the increase in costs associated with the increase in revenue.
Operating expenses decreased to $44.2 million for the three-month period ended December 31, 2019 from $44.6 million for the three-month period ended December 31, 2018, a decrease of $0.4 million. The decrease was primarily due to the decrease in expenses associated with the decrease in revenue and a decrease in salary expense, partially offset by an increase in severance expense in our radio segment.
Corporate expenses increased to $7.9 million for the three-month period December 31, 2019 from $7.7 million for the three-month period ended December 31, 2018, an increase of $0.2 million, primarily due to an increase in legal expense, partially offset by a decrease in non-cash stock-based compensation expense.
Our historical revenues have primarily been denominated in U.S. dollars, and the majority of our current revenues continue to be, and is expected to remain, denominated in U.S. dollars. However, our operating expenses are generally denominated in the currencies of the countries in which our operations are located, and we have operations in countries other than the U.S., primarily related to the Headway business. As a result, we have operating expense, attributable to foreign currency loss, that is primarily related to the operations related to the Headway business. We had a foreign currency gain of $0.2 million for the three-month period December 31, 2019, compared to foreign currency loss of $1.1 million for the three-month period December 31, 2018. Foreign currency gains and losses are primarily due to currency fluctuations that affected our digital segment operations located outside the U.S., primarily related to the Headway business.
Impairment charge related to indefinite life intangible assets in our television and radio reporting units was $0.7 million for the three-month period ended December 31, 2019.
We recognized an impairment loss on investment of $1.3 million for the three-month period ended December 31, 2018, related to a decrease in value of a cost method investment.
Twelve-month Period Ended December 31, 2019 Compared to Twelve-month Period Ended December 31, 2018
(Unaudited)
Twelve Months Ended
December 31,
2019 2018 % Change
Net revenue 273,575 297,815 (8)
%
Cost of revenue - digital media (1) 36,757 45,096 (18)
%
Operating expenses (1) 173,377 176,777 (2)
%
Corporate expenses (1) 28,067 26,865 4
%
Depreciation and amortization 16,648 16,273 2
%
Change in fair value of contingent consideration (6,478) (1,202) 439
%
Impairment charge 32,097 *
Foreign currency (gain) loss 754 1,616 (53)
%
Other operating (gain) loss (5,994) (1,187) 405
%
Operating income (loss) (1,653) 33,577 (105)
%
Interest expense, net (10,330) (11,770) (12)
%
Dividend income 918 1,475 (38)
%
Gain (loss) on debt extinguishment (255) (550) (54)
%
Impairment loss on investment (1,320) (100)
%
Income before income taxes (11,320) 21,412 *
Income tax (expense) benefit (8,158) (7,877) 4
%
Net income (loss) before equity in net income (loss) of nonconsolidated (19,478) 13,535 *
affiliates
Equity in net income (loss) of nonconsolidated affiliates (234) (1,374) (83)
%
Net income (loss) $
(19,712) $
12,161 *
(1) Cost of revenue, operating expenses and corporate expenses are defined on page 1.
Net revenue decreased to $273.6 million for the year ended December 31, 2019 from $297.8 million for the year ended December 31, 2018, a decrease of approximately $24.2 million. Of the overall decrease, approximately $12.1 million was attributable to our digital segment and was primarily due to declines in both international and domestic revenue. This decline in digital revenue is being driven by a trend whereby revenue is shifting more to programmatic revenue. In addition, approximately $8.9 million of the overall decrease was attributable to our radio segment and was primarily due to decreases in local and national advertising revenue, as a result primarily of ratings declines, competitive factors with other Spanish-language broadcasters, changing demographic preferences of audiences, the absence of revenue from FIFA World Cup in 2019 compared to 2018, and a decrease in political advertising revenue, which was not material in 2019. Additionally, as we have previously noted, there is a trend for advertising to move increasingly from traditional media, such as radio, to new media, such as digital media, and we expect this trend to continue. Additionally, approximately $3.2 million of the overall decrease was attributable to our television segment and was primarily due to a decrease in political advertising revenue, which was not material in 2019, and decreases in national and local advertising revenue, as a result primarily of ratings declines, competitive factors with other Spanish-language broadcasters, and changing demographic preferences of audiences. Additionally, as we have previously noted, there is a trend for advertising to move increasingly from traditional media, such as television, to new media, such as digital media, and we expect this trend to continue. The overall decrease in our television segment was partially offset by increases in revenue from retransmission consent and spectrum usage rights.
Cost of revenue in our digital media segment decreased to $36.8 million for the year ended December 31, 2019 from $45.1 million for the year ended December 31, 2018, a decrease of $8.3 million, primarily due to a decrease in expenses associated with the decrease in revenue in our digital segment and a strategic shift in our digital business designed to focus on generating revenue with lower associated costs to produce higher margins.
Operating expenses decreased to $173.4 million for the twelve-month period ended December 31, 2019 from $176.8 million for the twelve-month period ended December 31, 2018, a decrease of $3.4 million. Of the overall decrease, approximately $2.7 million was attributable to our radio segment and was primarily due to a decrease in expenses associated with the decrease in advertising revenue, a decrease in bad debt expense and a decrease in salary expense, partially offset by an increase in severance expense. Additionally, $0.8 million of the overall decrease was attributable to our digital media segment and was primarily due to a decrease in expenses associated with the decrease in revenue. The overall decrease was partially offset by an increase of $0.1 attributable to our television segment and was primarily due to an increase in bad debt expense and an increase in advertising expense.
Corporate expenses increased to $28.1 million for the year ended December 31, 2019 from $26.9 million for the year ended December 31, 2018, an increase of $1.2 million. The increase was primarily due to an increase in audit fees that we incurred in 2019 in connection with the audit of our 2018 financial statements, partially offset by a decrease in non-cash stock-based compensation.
Our historical revenues have primarily been denominated in U.S. dollars, and the majority of our current revenues continue to be, and is expected to remain, denominated in U.S. dollars. However, our operating expenses are generally denominated in the currencies of the countries in which our operations are located, and we have operations in countries other than the U.S., primarily related to the Headway business. As a result, we have operating expense, attributable to foreign currency loss, that is primarily related to the operations related to the Headway business. Foreign currency loss decreased to $0.8 million for the year ended December 31, 2019 from $1.6 million for the year ended December 31, 2018, a decrease of $0.8 million, which was primarily due to currency fluctuations that affected our digital segment operations located outside the U.S., primarily related to the Headway business.
Impairment charge related to goodwill in our digital reporting unit was $27.7 million for the year ended December 31, 2019. Impairment charge related to indefinite life intangible assets in our television and radio reporting units was $4.2 million for the year ended December 31, 2019. These write-downs were made pursuant to Accounting Standards Codification (ASC) 350, Intangibles - Goodwill and Other, which requires that goodwill and certain intangible assets be tested for impairment at least annually, or more frequently if events or changes in circumstances indicate the assets might be impaired. We also recorded an impairment charge of $0.2 million to reflect the fair market value of our assets held for sale.
We recognized an impairment loss on investment of $1.3 million for the year ended December 31, 2018, related to a decrease in value of a cost method investment.
Segment Results
The following represents selected unaudited segment information:
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2019 2018 % Change 2019 2018 % Change
Net Revenue
Television $
36,909 $
45,528 (19) $
149,654 $
152,911 (2)
% %
Radio 13,909 16,796 (17) 55,013 63,922 (14)
% %
Digital 20,020 19,749 1 68,908 80,982 (15)
% %
Total $
70,838 $
82,073 (14) $
273,575 $
297,815 (8)
% %
Cost of Revenue (1)
Digital 10,314 9,847 5 36,757 45,096 (18)
% %
Total $
10,314 $
9,847 5 $
36,757 $
45,096 (18)
% %
Operating Expenses (1)
Television 21,726 21,725 0 84,416 84,298 0
% %
Radio 14,352 13,975 3 56,700 59,368 (4)
% %
Digital 8,091 8,868 (9) 32,261 33,111 (3)
% %
Total $
44,169 $
44,568 (1) $
173,377 $
176,777 (2)
% %
Corporate Expenses (1) $
7,887 $
7,711 2 $
28,067 $
26,865 4
% %
Foreign currency (gain) loss $
(223) $
1,085 * $
754 $
1,616 (53)
%
Consolidated adjusted EBITDA (1) $
11,056 $
20,936 (47) $
41,209 $
54,038 (24)
% %
(1) Cost of revenue, operating expenses, corporate expenses, and consolidated adjusted EBITDA are defined on page 1.
Entravision Communications Corporation will hold a conference call to discuss its 2019 fourth quarter results on March 5, 2020 at 5:00 p.m. Eastern Time. To access the conference call, please dial 412-317-5440 ten minutes prior to the start time. The call will be webcast live and archived for replay on the investor relations portion of the Company's web site located at www.entravision.com.
Entravision is a diversified global media, marketing and technology company that reaches and engages Latino consumers in the U.S. and other markets primarily including Mexico, Latin America and Spain. Entravision's portfolio includes digital media properties and advertising technology platforms that deliver performance-based solutions and data insights, along with 56 television stations and 49 radio stations. Entravision's digital and technology businesses include Smadex, a leading technology platform providing mobile, programmatic, data and performance digital marketing solutions. Entravision is the largest affiliate group of both the Univision and UniMás television networks, and its Spanish-language radio stations feature its nationally recognized talent. Entravision shares of Class A Common Stock are traded on The New York Stock Exchange under the symbol: EVC. Learn more at: www.entravision.com.
This press release contains certain forward-looking statements. These forward-looking statements, which are included in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, may involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this press release. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that actual results will not differ materially from these expectations, and the Company disclaims any duty to update any forward-looking statements made by the Company. From time to time, these risks, uncertainties and other factors are discussed in the Company's filings with the Securities and Exchange Commission.
# # #
(Financial Table Follows)
Entravision Communications Corporation
Consolidated Balance Sheets
(In thousands; unaudited)
December 31, December 31,
2019 2018
ASSETS
Current assets
Cash and cash equivalents $
33,123 $
46,733
Marketable securities 91,662 132,424
Restricted Cash 734 732
Trade receivables, net of allowance for doubtful accounts 71,406 79,308
Assets held for sale 950 1,179
Prepaid expenses and other current assets 11,557 10,672
Total current assets 209,432 271,048
Property and equipment, net 79,642 64,939
Intangible assets subject to amortization, net 16,772 22,598
Intangible assets not subject to amortization 252,544 254,598
Goodwill 46,511 74,292
Operating leases right of use asset 43,837
Other assets 7,462 2,934
Total assets $
656,200 $
690,409
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of long-term debt $
3,000 $
3,000
Accounts payable and accrued expenses 53,931 51,034
Operating lease liabilities 9,056
Total current liabilities 65,987 54,034
Long-term debt, less current maturities, net of unamortized debt issuance costs 213,024 240,541
Long-term operating lease liabilities 41,387
Other long-term liabilities 3,371 16,418
Deferred income taxes 44,259 46,684
Total liabilities 368,028 357,677
Stockholders' equity
Class A common stock 6 6
Class B common stock 2 2
Class U common stock 1 1
Additional paid-in capital 836,170 862,299
Accumulated deficit (547,876) (528,164)
Accumulated other comprehensive income (loss) (131) (1,412)
Total stockholders' equity 288,172 332,732
Total liabilities and stockholders' equity $
656,200 $
690,409
Entravision Communications Corporation
Consolidated Statements of Operations
(In thousands, except share and per share data)
(Unaudited)
Three-Month Period Twelve-Month Period
Ended December 31, Ended December 31,
2019 2018 2019 2018
Net revenue $
70,838 $
82,073 $
273,575 $
297,815
Expenses:
Cost of revenue - digital media 10,314 9,847 36,757 45,096
Direct operating expenses 30,020 31,398 119,412 125,242
Selling, general and administrative expenses 14,149 13,170 53,965 51,535
Corporate expenses 7,887 7,711 28,067 26,865
Depreciation and amortization 4,236 4,221 16,648 16,273
Change in fair value of contingent consideration (4,102) (2,275) (6,478) (1,202)
Impairment charge 654 32,097
Foreign currency (gain) loss (223) 1,085 754 1,616
Other operating (gain) loss (829) (565) (5,994) (1,187)
62,106 64,592 275,228 264,238
Operating income (loss) 8,732 17,481 (1,653) 33,577
Interest expense (3,102) (4,349) (13,683) (15,743)
Interest income 752 1,088 3,353 3,973
Dividend income 171 473 918 1,475
Gain (loss) on debt extinguishment (255) (550) (255) (550)
Impairment loss on investment (1,320) (1,320)
Income before income taxes 6,298 12,823 (11,320) 21,412
Income tax (expense) benefit 1,107 (4,713) (8,158) (7,877)
Income (loss) before equity in net income (loss) of nonconsolidated 7,405 8,110 (19,478) 13,535
affiliate
Equity in net income (loss) of nonconsolidated affiliate (45) (1,197) (234) (1,374)
Net income (loss) $
7,360 $
6,913 $
(19,712) $
12,161
Basic and diluted earnings per share:
Net income (loss) per share, basic $
0.09 $
0.08 $
(0.23) $
0.14
Net income (loss) per share, diluted $
0.09 $
0.08 $
(0.23) $
0.13
Cash dividends declared per common share, basic $
0.05 $
0.05 $
0.20 $
0.20
Cash dividends declared per common share, diluted $
0.05 $
0.05 $
0.20 $
0.20
Weighted average common shares outstanding, basic 84,226,135 88,357,076 85,107,301 89,115,997
Weighted average common shares outstanding, diluted 85,449,374 89,598,683 86,224,517 90,328,583
Entravision Communications Corporation
Consolidated Statements of Cash Flows
(In thousands; unaudited)
Three-Month Period Twelve-Month Period
Ended December 31, Ended December 31,
2019 2018 2019 2018
Cash flows from operating activities:
Net income (loss) $
7,360 $
6,913 $
(19,712) $
12,161
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization 4,236 4,221 16,648 16,273
Impairment charge 654 32,097
Impairment loss on investment 1,320 1,320
Deferred income taxes (1,630) 2,670 5,311 4,612
Non-cash interest 166 296 881 1,124
Amortization of syndication contracts 131 125 505 651
Payments on syndication contracts (124) (127) (543) (643)
Equity in net (income) loss of nonconsolidated affiliate 45 1,197 234 1,374
Non-cash stock-based compensation 1,923 2,076 4,377 5,787
(Gain) loss on disposal of property and equipment 158
(Gain) loss on debt extinguishment 255 550 255 550
Changes in assets and liabilities:
(Increase) decrease in trade receivables, net (2,093) (2,683) 8,610 5,895
(Increase) decrease in prepaid expenses and other current assets 2,946 1,629 2,102 (5,581)
Increase (decrease) in accounts payable, accrued expenses and (5,816) (6,888) (19,384) (9,727)
other liabilities
Net cash provided by operating activities 8,053 11,299 31,539 33,796
Cash flows from investing activities:
Proceeds from sale of property and equipment and intangibles 33
Purchases of property and equipment (4,101) (4,729) (25,283) (17,006)
Purchases of intangibles (2,300) (2,300) (3,153)
Purchase of a businesses, net of cash acquired (3,522)
Purchases of marketable securities (1,400) (159,403)
Proceeds from marketable securities 15,766 43,647 25,000
Purchases of investments (525) (300) (1,495)
Deposits on acquisition 147
Net cash provided by (used in) investing activities 9,512 (5,254) 14,364 (159,546)
Cash flows from financing activities:
Proceeds from stock option exercises 172 249
Tax payments related to shares withheld for share-based compensation (915) (29) (1,688) (2,268)
plans
Payments on long-term debt (25,750) (50,750) (28,000) (53,000)
Dividends paid (4,195) (4,379) (16,962) (17,782)
Repurchase of Class A common stock (2,208) (6,152) (12,565) (13,812)
Payment of contingent consideration (2,015)
Payments of capitalized debt offering and issuance costs (225)
Net cash used in financing activities (33,068) (61,138) (59,440) (88,628)
Effect of exchange rates on cash, cash equivalents and restricted cash (79) (71) (11)
Net increase (decrease) in cash and cash equivalents (15,582) (55,093) (13,608) (214,389)
Cash and cash equivalents:
Beginning 49,439 102,558 47,465 261,854
Ending $
33,857 $
47,465 $
33,857 $
47,465
Entravision Communications Corporation
Reconciliation of Consolidated Adjusted EBITDA to Cash Flows From Operating Activities
(In thousands; unaudited)
The most directly comparable GAAP financial measure is operating cash flow. A reconciliation of this non-GAAP measure to cash flows from operating activities for each of the periods presented is as follows:
Three-Month Period Twelve-Month Period
Ended December 31, Ended December 31,
2019 2018 2019 2018
Consolidated adjusted EBITDA (1) $
11,056 $
20,936 $
41,209 $
54,038
Interest expense (3,102) (4,349) (13,683) (15,743)
Interest income 752 1,088 3,353 3,973
Gain (loss) on debt extinguishment (255) (550) (255) (550)
Income tax (expense) benefit 1,107 (4,713) (8,158) (7,877)
Amortization of syndication contracts (131) (125) (505) (651)
Payments on syndication contracts 124 127 543 643
Non-cash stock-based compensation included in direct operating
expenses (408) (284) (732) (732)
Non-cash stock-based compensation included in corporate (1,515) (1,792) (3,645) (5,055)
expenses
Depreciation and amortization (4,236) (4,221) (16,648) (16,273)
Change in fair value of contingent consideration 4,102 2,275 6,478 1,202
Non-recurring severance charge (435) (2,250) (782)
Dividend income 171 473 918 1,475
Other income (loss) 829 565 5,994 1,187
Impairment charge (654) (32,097)
Impairment loss on investment (1,320) (1,320)
Equity in net income (loss) of nonconsolidated affiliates (45) (1,197) (234) (1,374)
Net income (loss) 7,360 6,913 (19,712) 12,161
Depreciation and amortization 4,236 4,221 16,648 16,273
Impairment charge 654 32,097
Impairment loss on investment 1,320 1,320
Deferred income taxes (1,630) 2,670 5,311 4,612
Amortization of debt issuance costs 166 296 881 1,124
Amortization of syndication contracts 131 125 505 651
Payments on syndication contracts (124) (127) (543) (643)
Equity in net (income) loss of nonconsolidated affiliate 45 1,197 234 1,374
Non-cash stock-based compensation 1,923 2,076 4,377 5,787
(Gain) loss on disposal of property and equipment 158
(Gain) loss on debt extinguishment 255 550 255 550
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (2,093) (2,683) 8,610 5,895
(Increase) decrease in prepaid expenses and other assets 2,946 1,629 2,102 (5,581)
Increase (decrease) in accounts payable, accrued expenses and (5,816) (6,888) (19,384) (9,727)
other liabilities
Net cash provided by (used in) operating activities $
8,053 $
11,299 $
31,539 $
33,796
(1) Consolidated adjusted EBITDA is defined on page 1.
Entravision Communications Corporation
Reconciliation of Free Cash Flow to Cash Flows From Operating Activities
(In thousands; unaudited)
The most directly comparable GAAP financial measure is operating cash flow. A reconciliation of this non-GAAP measure to cash flows from operating activities for each of the periods presented is as follows:
Three-Month Period Twelve-Month Period
Ended December 31, Ended December 31,
2019 2018 2019 2018
Consolidated adjusted EBITDA (1) $
11,056 $
20,936 $
41,209 $
54,038
Net, cash interest expense (1) (2,184) (2,965) (9,449) (10,646)
Dividend income 171 473 918 1,475
Cash paid for income taxes (523) (2,043) (2,847) (3,265)
Capital expenditures (2) (4,101) (4,729) (25,283) (17,006)
FCC reimbursement 829 565 5,994 1,187
Non-recurring cash severance charge (435) (2,250) (782)
Free cash flow (1) 4,813 12,237 8,292 25,001
Capital expenditures (2) 4,101 4,729 25,283 17,006
Change in fair value of contingent consideration 4,102 2,275 6,478 1,202
(Gain) loss on disposal of property and equipment 158
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (2,093) (2,683) 8,610 5,895
(Increase) decrease in prepaid expenses and other assets 2,946 1,629 2,102 (5,581)
Increase (decrease) in accounts payable, accrued expenses and other (5,816) (6,888) (19,384) (9,727)
liabilities
Cash Flows From Operating Activities $
8,053 $
11,299 $
31,539 $
33,796
(1) Consolidated adjusted EBITDA, net interest expense, and free cash flow are defined on page 1.
(2) Capital expenditures are not part of the consolidated statement of operations.
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SOURCE Entravision Communications Corporation
