Declares Quarterly Cash Dividend of $0.05
Per Share Payable on June 28, 2024
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, 2024.
“On March 4, 2024, we received a communication from Meta that it
intends to wind down its authorized sales partner, or ASP, program
globally and end its relationship with all of its ASPs, including
us, by July 1, 2024. While we are disappointed in Meta’s decision,
we have a solid balance sheet and a strong cash position, and we
are confident in Entravision’s long-term opportunities. We have
initiated a thorough review of our current digital strategy,
operations and cost structure,” said Michael Christenson, Chief
Executive Officer.
Mr. Christenson continued, “We remain focused on our 2024
priorities: maximize our political revenue in a year in which our
audience will be critical to determining the outcome of the 2024
U.S. elections, provide highly-rated news and content to our
audience, and build Smadex, our programmatic ad purchasing
platform.”
Unaudited Financial Highlights (In thousands, except share
and per share data)
Three-Month Period
Ended March 31,
2024
2023
% Change
Net revenue
$
277,445
$
239,006
16
%
Cost of revenue - digital (1)
203,229
167,756
21
%
Operating expenses (2)
62,267
52,630
18
%
Corporate expenses (3)
12,248
10,502
17
%
Foreign currency (gain) loss
449
(956
)
*
Consolidated EBITDA (4)
4,530
13,022
(65
)%
Free cash flow (5)
$
(2,831
)
$
3,908
*
Net income (loss)
$
(51,669
)
$
1,699
*
Net (income) loss attributable to
redeemable noncontrolling interest
$
2,779
$
-
*
Net (income) loss attributable to
noncontrolling interest
$
-
$
342
(100
)%
Net income (loss) attributable to common
stockholders
$
(48,890
)
$
2,041
*
Net income (loss) per share attributable
to common stockholders, basic and diluted
$
(0.55
)
$
0.02
*
Weighted average common shares
outstanding, basic
89,518,058
87,623,887
Weighted average common shares
outstanding, diluted
89,518,058
89,786,585
(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
$1.8 million and $1.9 million of non-cash stock-based compensation
for the three-month periods ended March 31, 2024 and 2023,
respectively.
(3)
Corporate expenses include $3.7 million and $2.2 million of
non-cash stock-based compensation for the three-month periods ended
March 31, 2024 and 2023, 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.
Net revenue for the first quarter of 2024 increased primarily
due to increases in advertising revenue from our digital business
units in our digital segment, and political advertising revenue in
our television and audio segments, partially offset by decreases in
national advertising revenue, spectrum usage rights revenue and
retransmission consent revenue in our television segment, and
decreases in local and national advertising revenue in our audio
segment.
Cost of revenue for the first quarter of 2024 increased
primarily due to the increase in digital advertising revenue.
Operating expenses for the first quarter of 2024 increased
primarily due to expenses associated with the increase in
advertising revenue and an increase in salary expense, partially
offset by a decrease in rent expense.
Corporate expenses for the first quarter of 2024 increased
primarily due to an increase in non-cash stock-based compensation
and an increase in salary expense, partially offset by a decrease
in audit fees.
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 $4.5 million. The quarterly dividend will be payable on June 28,
2024 to shareholders of record as of the close of business on June
14, 2024. 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 7.
Balance Sheet and Related Metrics
Cash and marketable securities as of March 31, 2024 totaled
$132.7 million. Total debt as defined in the Company’s credit
agreement was $200.1 million. Net of $50 million of cash and
marketable securities, total leverage as defined in the Company’s
credit agreement was 3.1 times as of March 31, 2024. Net of total
cash and marketable securities, total leverage was 1.4 times.
Unaudited Segment Results (In thousands)
Three-Month Period
Ended March 31,
2024
2023
% Change
Net Revenue
Digital
$
237,491
$
196,482
21
%
Television
28,549
30,312
(6
)%
Audio
11,405
12,212
(7
)%
Total
$
277,445
$
239,006
16
%
Cost of Revenue - digital (1)
Digital
$
203,229
$
167,756
21
%
Operating Expenses (1)
Digital
28,077
21,539
30
%
Television
22,968
20,099
14
%
Audio
11,222
10,992
2
%
Total
$
62,267
$
52,630
18
%
Corporate Expenses (1)
$
12,248
$
10,502
17
%
Consolidated EBITDA (1)
$
4,530
$
13,022
(65
)%
(1)
Cost of revenue, operating expenses, corporate expenses, and
consolidated EBITDA are defined on page 1.
Notice of Conference Call
Entravision will hold a conference call to discuss its first
quarter 2024 results on Thursday, May 2, 2024 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. 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. We
have commercial partnerships with global media companies, 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,
2024
2023
Net revenue
$
277,445
$
239,006
Expenses:
Cost of revenue - digital
203,229
167,756
Direct operating expenses
35,572
29,862
Selling, general and administrative
expenses
26,695
22,768
Corporate expenses
12,248
10,502
Depreciation and amortization
7,133
6,471
Change in fair value of contingent
consideration
(1,420
)
(4,065
)
Impairment charge
49,438
—
Foreign currency (gain) loss
449
(956
)
333,344
232,338
Operating income (loss)
(55,899
)
6,668
Interest expense
(4,559
)
(4,028
)
Interest income
1,130
860
Dividend income
10
18
Realized gain (loss) on marketable
securities
(113
)
(32
)
Gain (loss) on debt extinguishment
(40
)
(1,556
)
Income (loss) before income taxes
(59,471
)
1,930
Income tax benefit (expense)
7,802
(231
)
Net income (loss)
(51,669
)
1,699
Net (income) loss attributable to
redeemable noncontrolling interest
2,779
—
Net (income) loss attributable to
noncontrolling interest
—
342
Net income (loss) attributable to common
stockholders
$
(48,890
)
$
2,041
Basic and diluted earnings per share:
Net income (loss) per share attributable
to common stockholders, basic and diluted
$
(0.55
)
$
0.02
Cash dividends declared per common share,
basic and diluted
$
0.05
$
0.05
Weighted average common shares
outstanding, basic
89,518,058
87,623,887
Weighted average common shares
outstanding, diluted
89,518,058
89,786,585
Entravision Communications
Corporation
Consolidated Balance
Sheets
(In thousands;
unaudited)
March 31,
December 31,
2024
2023
ASSETS
Current assets
Cash and cash equivalents
$
128,410
$
105,739
Marketable securities
4,335
13,172
Restricted cash
774
770
Trade receivables, net of allowance for
doubtful accounts
206,065
235,837
Assets held for sale
301
301
Prepaid expenses and other current
assets
40,095
30,036
Total current assets
379,980
385,855
Property and equipment, net
69,294
71,475
Intangible assets subject to amortization,
net
34,660
51,784
Intangible assets not subject to
amortization
195,174
195,174
Goodwill
55,272
90,672
Deferred income taxes
5,175
4,991
Operating leases right of use asset
43,543
43,941
Other assets
21,892
22,054
Total assets
$
804,990
$
865,946
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities
Current maturities of long-term debt
$
3,360
$
9,969
Accounts payable and accrued expenses
263,484
254,802
Operating lease liabilities
7,518
7,282
Total current liabilities
274,362
272,053
Long-term debt, less current maturities,
net of unamortized debt issuance costs
195,762
199,552
Long-term operating lease liabilities
44,901
45,665
Other long-term liabilities
21,404
23,009
Deferred income taxes
55,186
59,381
Total liabilities
591,615
599,660
Redeemable noncontrolling interest
39,840
43,758
Stockholders' equity
Class A common stock
8
8
Class U common stock
1
1
Additional paid-in capital
743,339
743,246
Accumulated deficit
(568,702
)
(519,812
)
Accumulated other comprehensive income
(loss)
(1,111
)
(915
)
Total stockholders' equity
173,535
222,528
Total liabilities, redeemable
noncontrolling interest and equity
$
804,990
$
865,946
Entravision Communications
Corporation
Consolidated Statements of
Cash Flows
(In thousands;
unaudited)
Three-Month Period
Ended March 31,
2024
2023
Cash flows from operating
activities:
Net income (loss)
$
(51,669
)
$
1,699
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization
7,133
6,471
Impairment charge
49,438
—
Deferred income taxes
(4,224
)
(205
)
Non-cash interest
92
133
Amortization of syndication contracts
113
120
Payments on syndication contracts
(115
)
(120
)
Non-cash stock-based compensation
5,447
4,053
(Gain) loss on marketable securities
113
32
(Gain) loss on disposal of property and
equipment
97
68
(Gain) loss on debt extinguishment
40
1,556
Change in fair value of contingent
consideration
(1,420
)
(4,065
)
Changes in assets and liabilities:
(Increase) decrease in accounts
receivable
29,473
33,157
(Increase) decrease in prepaid expenses
and other current assets, operating leases right of use asset and
other assets
(7,150
)
948
Increase (decrease) in accounts payable,
accrued expenses and other liabilities
6,007
(7,152
)
Net cash provided by operating
activities
33,375
36,695
Cash flows from investing
activities:
Purchases of property and equipment
(2,743
)
(6,750
)
Purchases of marketable securities
—
(9,397
)
Proceeds from sale of marketable
securities
8,842
15,704
Purchases of investments
—
(120
)
Net cash provided by (used in)
investing activities
6,099
(563
)
Cash flows from financing
activities:
Proceeds from stock option exercises
—
313
Tax payments related to shares withheld
for share-based compensation plans
(27
)
(80
)
Payments on debt
(10,275
)
(211,748
)
Dividends paid
(4,476
)
(4,932
)
Distributions to noncontrolling
interest
(1,078
)
—
Payment of contingent consideration
(900
)
—
Principal payments under finance lease
obligation
(41
)
(38
)
Proceeds from borrowings on debt
—
212,405
Payments for debt issuance costs
—
(1,285
)
Net cash provided by (used in)
financing activities
(16,797
)
(5,365
)
Effect of exchange rates on cash, cash
equivalents and restricted cash
(2
)
1
Net increase (decrease) in cash, cash
equivalents and restricted cash
22,675
30,768
Cash, cash equivalents and restricted
cash:
Beginning
106,509
111,444
Ending
$
129,184
$
142,212
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,
2024
2023
Consolidated EBITDA (1)
$
4,530
$
13,022
EBITDA attributable to redeemable
noncontrolling interest
167
—
EBITDA attributable to noncontrolling
interest
—
230
Interest expense
(4,559
)
(4,028
)
Interest income
1,130
860
Dividend income
10
18
Realized gain (loss) on marketable
securities
(113
)
(32
)
Income tax expense
7,802
(231
)
Amortization of syndication contracts
(113
)
(120
)
Payments on syndication contracts
115
120
Non-cash stock-based compensation included
in direct operating expenses
(1,785
)
(1,856
)
Non-cash stock-based compensation included
in corporate expenses
(3,662
)
(2,197
)
Depreciation and amortization
(7,133
)
(6,471
)
Change in fair value of contingent
consideration
1,420
4,065
Impairment charge
(49,438
)
—
Non-recurring cash severance charge
—
(125
)
Gain (loss) on debt extinguishment
(40
)
(1,556
)
Net (income) loss attributable to
redeemable noncontrolling interest
2,779
—
Net (income) loss attributable to
noncontrolling interest
—
342
Net income (loss) attributable to common
stockholders
(48,890
)
2,041
Depreciation and amortization
7,133
6,471
Impairment charge
49,438
—
Deferred income taxes
(4,224
)
(205
)
Non-cash interest
92
133
Amortization of syndication contracts
113
120
Payments on syndication contracts
(115
)
(120
)
Non-cash stock-based compensation
5,447
4,053
Realized (gain) loss on marketable
securities
113
32
(Gain) loss on debt extinguishment
40
1,556
(Gain) loss on disposal of property and
equipment
97
68
Change in fair value of contingent
consideration
(1,420
)
(4,065
)
Net income (loss) attributable to
redeemable noncontrolling interest
(2,779
)
—
Net income (loss) attributable to
noncontrolling interest
—
(342
)
Changes in assets and liabilities:
(Increase) decrease in accounts
receivable
29,473
33,157
(Increase) decrease in prepaid expenses
and other current assets, operating leases right of use asset and
other assets
(7,150
)
948
Increase (decrease) in accounts payable,
accrued expenses and other liabilities
6,007
(7,152
)
Cash flows from operating activities
33,375
36,695
(1)
Consolidated EBITDA is defined on page
1.
Entravision Communications
Corporation
Reconciliation of Free Cash
Flow to Cash Flows From Operating Activities
(In thousands;
unaudited)
The most directly comparable GAAP
financial measure is operating cash flow. A reconciliation of this
non-GAAP measure to cash flows from operating activities for each
of the periods presented is as follows:
Three-Month Period
Ended March 31,
2024
2023
Consolidated EBITDA (1)
$
4,530
$
13,022
Net interest expense (1)
(3,337
)
(3,035
)
Dividend income
10
18
Cash paid for income taxes
(1,291
)
(72
)
Capital expenditures (2)
(2,743
)
(6,750
)
Landlord incentive reimbursement
—
850
Non-recurring cash severance charge
—
(125
)
Free cash flow (1)
(2,831
)
3,908
Capital expenditures (2)
2,743
6,750
Landlord incentive reimbursement
—
(850
)
EBITDA attributable to redeemable
noncontrolling interest
167
—
EBITDA attributable to noncontrolling
interest
—
230
(Gain) loss on disposal of property and
equipment
97
68
Cash paid for income taxes
1,291
72
Deferred income taxes
(4,224
)
(205
)
Income tax (expense) benefit
7,802
(231
)
Changes in assets and liabilities:
(Increase) decrease in accounts
receivable
29,473
33,157
(Increase) decrease in prepaid expenses
and other current assets, operating leases right of use asset and
other assets
(7,150
)
948
Increase (decrease) in accounts payable,
accrued expenses and other liabilities
6,007
(7,152
)
Cash Flows From Operating Activities
$
33,375
$
36,695
(1)
Consolidated 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/20240502925590/en/
Christopher T. Young Chief Financial Officer and Treasurer
Entravision 310-447-3870 ir@entravision.com
Roy Nir VP, Financial Reporting and Investor Relations
Entravision 310-447-3870 ir@entravision.com
Grafico Azioni Entravision Communications (NYSE:EVC)
Storico
Da Feb 2025 a Mar 2025
Grafico Azioni Entravision Communications (NYSE:EVC)
Storico
Da Mar 2024 a Mar 2025
