Entravision Communications Corporation Reports First Quarter 2023 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, 2023.
First Quarter 2023 Highlights
- Record first quarter revenue
- Net revenue up 21% over the prior-year quarter
- Net income attributable to common stockholders up 8% over the prior-year quarter
- Consolidated EBITDA down 28% compared to the prior-year quarter
- Operating cash flow down 31% compared to the prior-year quarter
- Free cash flow down 73% compared to the prior-year quarter
- Quarterly cash dividend of $0.05 per share
- Entered into $275 Million Credit Facility
"Entravision saw continued growth in the first quarter of 2023, with revenue up 21% year-over-year," said Chris Young, Interim Chief Executive Officer and Chief Financial Officer. "Growth for the quarter was led by our digital segment, which is impressive given difficult macro conditions and decreased political advertising revenue from last year."
Mr. Young continued, "With a solid balance sheet in place, strong free cash flow generation, and an acute focus on expense management, Entravision is well-equipped to navigate the current economic environment. As we progress through additional quarters, we will continue to seek out opportunities, including acquisitions, that will enhance our digital offerings and strengthen our ability to compete internationally."
Quarterly Cash Dividend
The Company announced today that its Board of Directors approved a quarterly cash dividend to shareholders of $0.05 per share on the Company's Class A and Class U common stock, in an aggregate amount of $4.4 million. The quarterly dividend will be payable on June 30, 2023 to shareholders of record as of the close of business on June 16, 2023, and the common stock will trade ex-dividend on June 15, 2023. 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.
$275 Million Credit Facility
On March 17, 2023, the Company entered into the 2023 Amended and Restated Credit Facility (the "2023 Credit Facility"), which consists of a $200 million senior secured Term A Facility, which was drawn in full, and a $75 million Revolving Credit Facility, of which $11.5 million was drawn. In addition, the 2023 Amended and Restated Credit Agreement (the "2023 Credit Agreement") provides that the Company may increase the aggregate principal amount of the 2023 Credit Facility by an additional amount equal to $100 million plus the amount that would result in the Company's first lien net leverage ratio (as such term is used in the 2023 Credit Agreement) not exceeding 2.25 to 1.0, subject to the Company satisfying certain conditions.
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, |
||||||||||
|
2023 |
|
2022 |
|
% Change |
||||||
Net revenue |
$ |
239,006 |
|
$ |
197,172 |
|
21 |
% |
|||
Cost of revenue - digital (1) |
|
167,756 |
|
|
129,891 |
|
29 |
% |
|||
Operating expenses (2) |
|
52,630 |
|
|
43,862 |
|
20 |
% |
|||
Corporate expenses (3) |
|
10,502 |
|
|
8,724 |
|
20 |
% |
|||
Foreign currency (gain) loss |
|
(956 |
) |
|
(847 |
) |
13 |
% |
|||
|
|
|
|
|
|
|
|||||
Consolidated EBITDA (4) |
|
13,022 |
|
|
18,113 |
|
(28 |
)% |
|||
|
|
|
|
|
|
|
|||||
Free cash flow (5) |
$ |
3,908 |
|
$ |
14,327 |
|
(73 |
)% |
|||
|
|
|
|
|
|
|
|||||
Net income (loss) |
$ |
1,699 |
|
$ |
1,887 |
|
(10 |
)% |
|||
Net (income) loss attributable to noncontrolling interest |
$ |
342 |
|
$ |
- |
|
* |
|
|||
Net income (loss) attributable to common stockholders |
$ |
2,041 |
|
$ |
1,887 |
|
8 |
% |
|||
|
|
|
|
|
|
|
|||||
Net income (loss) per share attributable to common stockholders, basic and diluted |
$ |
0.02 |
|
$ |
0.02 |
|
0 |
% |
|||
|
|
|
|
|
|
|
|||||
Weighted average common shares outstanding, basic |
|
87,623,887 |
|
|
86,522,378 |
|
|
|
|||
Weighted average common shares outstanding, diluted |
|
89,786,585 |
|
|
88,630,216 |
|
|
|
|||
(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 $1.9 million and $1.0 million of non-cash stock-based compensation for the three-month periods ended March 31, 2023 and 2022, respectively. |
|
|
|
|
(3) |
Corporate expenses include $2.2 million and $1.6 million of non-cash stock-based compensation for the three-month periods ended March 31, 2023 and 2022, respectively. |
|
|
|
|
(4) |
Consolidated 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 EBITDA because that measure is defined in our 2017 Credit Agreement and 2023 Credit Agreement, 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 EBITDA less cash paid for income taxes, net interest expense, capital expenditures (less amounts reimbursed by landlord) 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, |
||||||||||
|
2023 |
|
2022 |
|
% Change |
||||||
Net revenue |
$ |
239,006 |
|
$ |
197,172 |
|
21 |
% |
|||
Cost of revenue - digital (1) |
|
167,756 |
|
|
129,891 |
|
29 |
% |
|||
Operating expenses (1) |
|
52,630 |
|
|
43,862 |
|
20 |
% |
|||
Corporate expenses (1) |
|
10,502 |
|
|
8,724 |
|
20 |
% |
|||
Depreciation and amortization |
|
6,471 |
|
|
6,395 |
|
1 |
% |
|||
Change in fair value of contingent consideration |
|
(4,065 |
) |
|
5,100 |
|
* |
|
|||
Foreign currency (gain) loss |
|
(956 |
) |
|
(847 |
) |
13 |
% |
|||
Other operating (gain) loss |
|
- |
|
|
(119 |
) |
(100 |
)% |
|||
|
|
|
|
|
|
|
|||||
Operating income (loss) |
|
6,668 |
|
|
4,166 |
|
60 |
% |
|||
Interest expense, net |
|
(3,168 |
) |
|
(1,430 |
) |
122 |
% |
|||
Dividend income |
|
18 |
|
|
3 |
|
500 |
% |
|||
Realized gain (loss) on marketable securities |
|
(32 |
) |
|
- |
|
* |
|
|||
Gain (loss) on debt extinguishment |
|
(1,556 |
) |
|
- |
|
* |
|
|||
|
|
|
|
|
|
|
|||||
Income (loss) before income taxes |
|
1,930 |
|
|
2,739 |
|
(30 |
)% |
|||
Income tax benefit (expense) |
|
(231 |
) |
|
(852 |
) |
(73 |
)% |
|||
|
|
|
|
|
|
|
|||||
Net income (loss) |
|
1,699 |
|
|
1,887 |
|
(10 |
)% |
|||
Net (income) loss attributable to noncontrolling interest |
|
342 |
|
|
- |
|
* |
|
|||
Net income (loss) attributable to common stockholders |
$ |
2,041 |
|
$ |
1,887 |
|
8 |
% |
|||
(1) |
Cost of revenue, operating expenses and corporate expenses are defined on page 2. |
|
Net revenue in the first quarter of 2023 totaled $239.0 million, up 21% from $197.2 million in the prior-year period. Of the overall increase, $42.8 million was attributable to our digital segment and was primarily due to advertising revenue growth from our digital commercial partnerships business, and due to our VIEs, which did not contribute to our financial results in our digital segment in the comparable period. The overall increase was partially offset by a decrease of $0.6 million attributable to our television segment, primarily due to decreases in political advertising revenue and national advertising revenue, partially offset by increases in local advertising revenue, spectrum usage rights revenue and retransmission consent revenue. In addition, the overall increase was partially offset by a decrease of $0.4 million attributable to our audio segment, primarily due to a decrease in political advertising revenue, and decreases in local and national advertising revenue.
Cost of revenue in the first quarter of 2023 totaled $167.8 million, up 29% from $129.9 million in the prior-year period. The increase was primarily due to increased cost of revenue related to advertising revenue growth from our digital commercial partnerships business, and due to our VIEs, which did not contribute to our financial results in our digital segment in the comparable period.
Operating expenses in the first quarter of 2023 totaled $52.6 million, up 20% from $43.9 million in the prior-year period. Of the overall increase, $6.3 million was attributable to our digital segment and was primarily due to our VIEs, which did not contribute to our financial results in our digital segment in the comparable period, an increase in salary expense, an increase in non-cash stock-based compensation, and an increase in expenses associated with the increase in digital advertising revenue. Additionally, of the overall increase in operating expenses, $0.9 million was attributable to our television segment primarily due to an increase in non-cash stock-based compensation, increased rent expense in the temporary office space until the move to our new permanent offices is completed, and an increase in bad debt expense. In addition, of the overall increase in operating expenses, $1.6 million was attributable to our audio segment primarily due to increases in salaries and music license fees, and increased rent expense in the temporary office space until the move to our new permanent offices is completed. The increases in non-cash stock-based compensation are mainly a result of the 2023 annual restricted stock unit ("RSU") grant, which was made in February 2023 compared to the 2022 annual grant, which was made in December 2022.
Corporate expenses in the first quarter of 2023 totaled $10.5 million, up 20% from $8.7 million in the prior-year period. The increase was primarily due to an increase in non-cash stock-based compensation, which is mainly a result of the 2023 annual RSU grant, which was made in February 2023 compared to the 2022 annual grant, which was made in December 2022, an increase in professional service fees, and an increase in audit fees.
Balance Sheet and Related Metrics
Cash and marketable securities as of March 31, 2023 totaled $179.8 million. Total debt under the Company's credit agreement was $211.5 million. Net of $50 million of cash and marketable securities, total leverage as defined in the Company's credit agreement was 1.7 times as of March 31, 2023. Net of total cash and marketable securities, total leverage was 0.3 times.
Unaudited Segment Results (In thousands) |
|||||||||||
|
Three-Month Period |
||||||||||
|
Ended March 31, |
||||||||||
|
2023 |
|
2022 |
|
% Change |
||||||
Net Revenue |
|
|
|
|
|||||||
Digital |
$ |
196,482 |
|
$ |
153,711 |
|
28 |
% |
|||
Television |
|
30,312 |
|
|
30,867 |
|
(2 |
)% |
|||
Audio |
|
12,212 |
|
|
12,594 |
|
(3 |
)% |
|||
Total |
$ |
239,006 |
|
$ |
197,172 |
|
21 |
% |
|||
|
|
|
|
|
|||||||
Cost of Revenue - digital (1) |
|
|
|
|
|||||||
Digital |
$ |
167,756 |
|
$ |
129,891 |
|
29 |
% |
|||
|
|
|
|
|
|||||||
Operating Expenses (1) |
|
|
|
|
|||||||
Digital |
|
21,539 |
|
|
15,235 |
|
41 |
% |
|||
Television |
|
20,099 |
|
|
19,240 |
|
4 |
% |
|||
Audio |
|
10,992 |
|
|
9,387 |
|
17 |
% |
|||
Total |
$ |
52,630 |
|
$ |
43,862 |
|
20 |
% |
|||
|
|
|
|
|
|||||||
Corporate Expenses (1) |
$ |
10,502 |
|
$ |
8,724 |
|
20 |
% |
|||
|
|
|
|
|
|||||||
Consolidated EBITDA (1) |
$ |
13,022 |
|
$ |
18,113 |
|
(28 |
)% |
|||
(1) |
Cost of revenue, operating expenses, corporate expenses, and consolidated EBITDA are defined on page 2. |
|
Notice of Conference Call
Entravision Communications Corporation will hold a conference call to discuss its first quarter 2023 results on Thursday, May 4, 2023 at 5:00 p.m. Eastern Time. To access the conference call, please dial (844) 836-8739 (U.S.) or (412) 317-5440 (Int'l) ten minutes prior to the start time and reference Conference ID number 10176751. 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 global advertising solutions, media and technology company. Over the past three decades, we have strategically evolved into a digital powerhouse, expertly connecting brands to consumers in the U.S., Latin America, Europe, Asia and Africa. Our digital segment, the company's largest by revenue, offers a full suite of end-to-end advertising services in 40 countries. We have commercial partnerships with Meta, Twitter, TikTok, and Spotify, and marketers can use our Smadex and other platforms to deliver targeted advertising to audiences around the globe. In the U.S., we maintain a diversified portfolio of television and radio stations that target Hispanic audiences and complement our global digital services. Entravision remains the largest affiliate group of the Univision and UniMás television networks. 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.
Entravision Communications Corporation |
||||||||
Consolidated Statements of Operations |
||||||||
(In thousands, except share and per share data) |
||||||||
(Unaudited) |
||||||||
|
|
|
|
|||||
|
|
Three-Month Period |
||||||
|
|
Ended March 31, |
||||||
|
|
2023 |
|
2022 |
||||
Net revenue |
|
$ |
239,006 |
|
|
$ |
197,172 |
|
|
|
|
|
|
|
|
||
Expenses: |
|
|
|
|
|
|
||
Cost of revenue - digital |
|
|
167,756 |
|
|
|
129,891 |
|
Direct operating expenses |
|
|
29,862 |
|
|
|
27,823 |
|
Selling, general and administrative expenses |
|
|
22,768 |
|
|
|
16,039 |
|
Corporate expenses |
|
|
10,502 |
|
|
|
8,724 |
|
Depreciation and amortization |
|
|
6,471 |
|
|
|
6,395 |
|
Change in fair value of contingent consideration |
|
|
(4,065 |
) |
|
|
5,100 |
|
Foreign currency (gain) loss |
|
|
(956 |
) |
|
|
(847 |
) |
Other operating (gain) loss |
|
|
— |
|
|
|
(119 |
) |
|
|
|
232,338 |
|
|
|
193,006 |
|
Operating income (loss) |
|
|
6,668 |
|
|
|
4,166 |
|
Interest expense |
|
|
(4,028 |
) |
|
|
(1,836 |
) |
Interest income |
|
|
860 |
|
|
|
406 |
|
Dividend income |
|
|
18 |
|
|
|
3 |
|
Realized gain (loss) on marketable securities |
|
|
(32 |
) |
|
|
— |
|
Gain (loss) on debt extinguishment |
|
|
(1,556 |
) |
|
|
— |
|
Income (loss) before income taxes |
|
|
1,930 |
|
|
|
2,739 |
|
Income tax benefit (expense) |
|
|
(231 |
) |
|
|
(852 |
) |
|
|
|
|
|
|
|
||
Net income (loss) |
|
|
1,699 |
|
|
|
1,887 |
|
Net (income) loss attributable to noncontrolling interest |
|
|
342 |
|
|
|
— |
|
Net income (loss) attributable to common stockholders |
|
$ |
2,041 |
|
|
$ |
1,887 |
|
|
|
|
|
|
|
|
||
Basic and diluted earnings per share: |
|
|
|
|
|
|
||
Net income (loss) per share attributable to common stockholders, basic and diluted |
|
$ |
0.02 |
|
|
$ |
0.02 |
|
|
|
|
|
|
|
|
||
Cash dividends declared per common share, basic and diluted |
|
$ |
0.05 |
|
|
$ |
0.03 |
|
|
|
|
|
|
|
|
||
Weighted average common shares outstanding, basic |
|
|
87,623,887 |
|
|
|
86,522,378 |
|
Weighted average common shares outstanding, diluted |
|
|
89,786,585 |
|
|
|
88,630,216 |
|
Entravision Communications Corporation |
||||||||
Consolidated Balance Sheets |
||||||||
(In thousands; unaudited) |
||||||||
|
|
|
|
|
|
|
||
|
|
March 31, |
|
December 31, |
||||
|
|
2023 |
|
2022 |
||||
ASSETS |
|
|
|
|
||||
Current assets |
|
|
|
|
||||
Cash and cash equivalents |
$ |
141,455 |
|
$ |
110,691 |
|
||
Marketable securities |
|
38,367 |
|
|
44,528 |
|
||
Restricted cash |
|
757 |
|
|
753 |
|
||
Trade receivables, net of allowance for doubtful accounts |
|
191,486 |
|
|
224,713 |
|
||
Assets held for sale |
|
301 |
|
|
— |
|
||
Prepaid expenses and other current assets |
|
30,135 |
|
|
27,238 |
|
||
Total current assets |
|
402,501 |
|
|
407,923 |
|
||
Property and equipment, net |
|
65,868 |
|
|
61,362 |
|
||
Intangible assets subject to amortization, net |
|
58,908 |
|
|
61,811 |
|
||
Intangible assets not subject to amortization |
|
207,453 |
|
|
207,453 |
|
||
Goodwill |
|
86,991 |
|
|
86,991 |
|
||
Deferred income taxes |
|
2,591 |
|
|
2,591 |
|
||
Operating leases right of use asset |
|
45,883 |
|
|
44,413 |
|
||
Other assets |
|
8,088 |
|
|
8,297 |
|
||
Total assets |
$ |
878,283 |
|
$ |
880,841 |
|
||
|
|
|
|
|
||||
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
||||
Current liabilities |
|
|
|
|
||||
Current maturities of long-term debt |
$ |
5,778 |
|
$ |
5,256 |
|
||
Accounts payable and accrued expenses |
|
233,791 |
|
|
237,415 |
|
||
Operating lease liabilities |
|
6,029 |
|
|
5,570 |
|
||
Total current liabilities |
|
245,598 |
|
|
248,241 |
|
||
Long-term debt, less current maturities, net of unamortized debt issuance costs |
|
207,016 |
|
|
207,292 |
|
||
Long-term operating lease liabilities |
|
44,580 |
|
|
42,151 |
|
||
Other long-term liabilities |
|
27,168 |
|
|
30,198 |
|
||
Deferred income taxes |
|
67,357 |
|
|
67,590 |
|
||
Total liabilities |
|
591,719 |
|
|
595,472 |
|
||
|
|
|
|
|
||||
Stockholders' equity |
|
|
|
|
||||
Class A common stock |
|
8 |
|
|
8 |
|
||
Class U common stock |
|
1 |
|
|
1 |
|
||
Additional paid-in capital |
|
776,198 |
|
|
776,298 |
|
||
Accumulated deficit |
|
(502,334 |
) |
|
(504,375 |
) |
||
Accumulated other comprehensive income (loss) |
|
(1,368 |
) |
|
(1,510 |
) |
||
Total stockholders' equity |
|
272,505 |
|
|
270,422 |
|
||
Noncontrolling interest |
|
14,059 |
|
|
14,947 |
|
||
Total equity |
|
286,564 |
|
|
285,369 |
|
||
Total liabilities and equity |
$ |
878,283 |
|
$ |
880,841 |
|
||
Entravision Communications Corporation |
||||||||
Consolidated Statements of Cash Flows |
||||||||
(In thousands; unaudited) |
||||||||
|
|
|
|
|||||
|
|
Three-Month Period |
||||||
|
|
Ended March 31, |
||||||
|
|
2023 |
|
2022 |
||||
Cash flows from operating activities: |
|
|
|
|
||||
Net income (loss) |
$ |
1,699 |
|
$ |
1,887 |
|
||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
6,471 |
|
|
6,395 |
|
||
Deferred income taxes |
|
(205 |
) |
|
(359 |
) |
||
Non-cash interest |
|
133 |
|
|
280 |
|
||
Amortization of syndication contracts |
|
120 |
|
|
116 |
|
||
Payments on syndication contracts |
|
(120 |
) |
|
(118 |
) |
||
Non-cash stock-based compensation |
|
4,053 |
|
|
2,573 |
|
||
(Gain) loss on marketable securities |
|
32 |
|
|
— |
|
||
(Gain) loss on disposal of property and equipment |
|
68 |
|
|
(151 |
) |
||
(Gain) loss on debt extinguishment |
|
1,556 |
|
|
- |
|
||
Change in fair value of contingent consideration |
|
(4,065 |
) |
|
5,100 |
|
||
Changes in assets and liabilities: |
|
|
|
|
||||
(Increase) decrease in accounts receivable |
|
33,157 |
|
|
29,380 |
|
||
(Increase) decrease in prepaid expenses and other current assets, operating leases right of use asset and other assets |
|
948 |
|
|
(2,405 |
) |
||
Increase (decrease) in accounts payable, accrued expenses and other liabilities |
|
(7,152 |
) |
|
10,521 |
|
||
Net cash provided by operating activities |
|
36,695 |
|
|
53,219 |
|
||
Cash flows from investing activities: |
|
|
|
|
||||
Proceeds from sale of property and equipment and intangibles |
|
— |
|
|
164 |
|
||
Purchases of property and equipment |
|
(6,750 |
) |
|
(1,547 |
) |
||
Purchases of marketable securities |
|
(9,397 |
) |
|
(85,517 |
) |
||
Proceeds from sale of marketable securities |
|
15,704 |
|
|
— |
|
||
Purchases of investments |
|
(120 |
) |
|
— |
|
||
Net cash used in investing activities |
|
(563 |
) |
|
(86,900 |
) |
||
Cash flows from financing activities: |
|
|
|
|
||||
Proceeds from stock option exercises |
|
313 |
|
|
218 |
|
||
Tax payments related to shares withheld for share-based compensation plans |
|
(80 |
) |
|
(257 |
) |
||
Payments on debt |
|
(211,748 |
) |
|
(750 |
) |
||
Dividends paid |
|
(4,932 |
) |
|
(2,167 |
) |
||
Repurchase of Class A common stock |
|
— |
|
|
(7,142 |
) |
||
Payment of contingent consideration |
|
— |
|
|
(14,730 |
) |
||
Principal payments under finance lease obligation |
|
(38 |
) |
|
(10 |
) |
||
Proceeds from borrowings on debt |
|
212,405 |
|
|
— |
|
||
Payments for debt issuance costs |
|
(1,285 |
) |
|
— |
|
||
Net cash used in financing activities |
|
(5,365 |
) |
|
(24,838 |
) |
||
Effect of exchange rates on cash, cash equivalents and restricted cash |
|
1 |
|
|
(1 |
) |
||
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
30,768 |
|
|
(58,520 |
) |
||
Cash, cash equivalents and restricted cash: |
|
|
|
|
||||
Beginning |
|
111,444 |
|
|
185,843 |
|
||
Ending |
$ |
142,212 |
|
$ |
127,323 |
|
||
Entravision Communications Corporation
Reconciliation of Consolidated 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, |
|||||||
|
2023 |
|
2022 |
|||||
|
|
|
|
|
||||
Consolidated EBITDA (1) |
$ |
13,022 |
|
$ |
18,113 |
|
||
EBITDA attributable to noncontrolling interest |
|
230 |
|
|
- |
|
||
Interest expense |
|
(4,028 |
) |
|
(1,836 |
) |
||
Interest income |
|
860 |
|
|
406 |
|
||
Dividend income |
|
18 |
|
|
3 |
|
||
Realized gain (loss) on marketable securities |
|
(32 |
) |
|
- |
|
||
Income tax expense |
|
(231 |
) |
|
(852 |
) |
||
Amortization of syndication contracts |
|
(120 |
) |
|
(116 |
) |
||
Payments on syndication contracts |
|
120 |
|
|
118 |
|
||
Non-cash stock-based compensation included in direct operating expenses |
|
(1,856 |
) |
|
(958 |
) |
||
Non-cash stock-based compensation included in corporate expenses |
|
(2,197 |
) |
|
(1,615 |
) |
||
Depreciation and amortization |
|
(6,471 |
) |
|
(6,395 |
) |
||
Change in fair value of contingent consideration |
|
4,065 |
|
|
(5,100 |
) |
||
Non-recurring cash severance charge |
|
(125 |
) |
|
- |
|
||
Other operating gain (loss) |
|
- |
|
|
119 |
|
||
Gain (loss) on debt extinguishment |
|
(1,556 |
) |
|
- |
|
||
Net (income) loss attributable to noncontrolling interest |
|
342 |
|
|
- |
|
||
Net income (loss) attributable to common stockholders |
|
2,041 |
|
|
1,887 |
|
||
|
|
|
|
|
||||
Depreciation and amortization |
|
6,471 |
|
|
6,395 |
|
||
Deferred income taxes |
|
(205 |
) |
|
(359 |
) |
||
Non-cash interest |
|
133 |
|
|
280 |
|
||
Amortization of syndication contracts |
|
120 |
|
|
116 |
|
||
Payments on syndication contracts |
|
(120 |
) |
|
(118 |
) |
||
Non-cash stock-based compensation |
|
4,053 |
|
|
2,573 |
|
||
Realized (gain) loss on marketable securities |
|
32 |
|
|
- |
|
||
(Gain) loss on debt extinguishment |
|
1,556 |
|
|
- |
|
||
(Gain) loss on disposal of property and equipment |
|
68 |
|
|
(151 |
) |
||
Change in fair value of contingent consideration |
|
(4,065 |
) |
|
5,100 |
|
||
Net income (loss) attributable to noncontrolling interest |
|
(342 |
) |
|
- |
|
||
Changes in assets and liabilities: |
|
|
|
|
||||
(Increase) decrease in accounts receivable |
|
33,157 |
|
|
29,380 |
|
||
(Increase) decrease in prepaid expenses and other current assets, operating leases right of use asset and other assets |
|
948 |
|
|
(2,405 |
) |
||
Increase (decrease) in accounts payable, accrued expenses and other liabilities |
|
(7,152 |
) |
|
10,521 |
|
||
Cash flows from operating activities |
|
36,695 |
|
|
53,219 |
|
||
(1) |
Consolidated 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, |
||||||
|
|
2023 |
|
2022 |
||||
Consolidated EBITDA (1) |
|
$ |
13,022 |
|
|
$ |
18,113 |
|
Net interest expense (1) |
|
|
(3,035 |
) |
|
|
(1,150 |
) |
Dividend income |
|
|
18 |
|
|
|
3 |
|
Cash paid for income taxes |
|
|
(72 |
) |
|
|
(1,211 |
) |
Capital expenditures (2) |
|
|
(6,750 |
) |
|
|
(1,547 |
) |
Landlord incentive reimbursement |
|
|
850 |
|
|
|
- |
|
Non-recurring cash severance charge |
|
|
(125 |
) |
|
|
- |
|
Other operating gain (loss) |
|
|
- |
|
|
|
119 |
|
Free cash flow (1) |
|
|
3,908 |
|
|
|
14,327 |
|
|
|
|
|
|
|
|
||
Capital expenditures (2) |
|
|
6,750 |
|
|
|
1,547 |
|
Landlord incentive reimbursement |
|
|
(850 |
) |
|
|
- |
|
EBITDA attributable to noncontrolling interest |
|
|
230 |
|
|
|
- |
|
(Gain) loss on disposal of property and equipment |
|
|
68 |
|
|
|
(151 |
) |
Cash paid for income taxes |
|
|
72 |
|
|
|
1,211 |
|
Deferred income taxes |
|
|
(205 |
) |
|
|
(359 |
) |
Income tax (expense) benefit |
|
|
(231 |
) |
|
|
(852 |
) |
Changes in assets and liabilities: |
|
|
|
|
|
|
||
(Increase) decrease in accounts receivable |
|
|
33,157 |
|
|
|
29,380 |
|
(Increase) decrease in prepaid expenses and other current assets, operating leases right of use asset and other assets |
|
|
948 |
|
|
|
(2,405 |
) |
Increase (decrease) in accounts payable, accrued expenses and other liabilities |
|
|
(7,152 |
) |
|
|
10,521 |
|
Cash Flows From Operating Activities |
|
$ |
36,695 |
|
|
$ |
53,219 |
|
(1) |
Consolidated 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/20230503006128/en/