Entravision Communications Corporation Reports Second Quarter 2021 Results

Rhea-AI Summary

Entravision Communications Corporation (NYSE: EVC) reported robust financial results for Q2 2021, with net revenue soaring 295% year-over-year to $178.4 million and net income attributable to common stockholders surging 236% to $7.9 million. Consolidated Adjusted EBITDA increased 932% to $17.8 million, driven by growth in the digital segment, which now comprises 73% of total revenue. A quarterly cash dividend of $0.025 per share was announced, payable on September 30, 2021. The acquisition of MediaDonuts enhances Entravision's digital advertising capabilities in Southeast Asia.

Positive

• Net revenue increased 295% year-over-year to $178.4 million.
• Net income attributable to common stockholders rose 236% to $7.9 million.
• Consolidated Adjusted EBITDA surged 932% year-over-year to $17.8 million.
• Digital segment revenue grew significantly, now representing 73% of total revenue.
• Free cash flow improved to $12.4 million from a loss of $1.4 million in the prior-year period.
• Quarterly cash dividend of $0.025 per share announced.

Negative

• Operating expenses increased by 25% to $41.4 million, primarily due to acquisitions.
• Corporate expenses rose 36% to $7.3 million due to increased salaries and fees.
• Total debt totaled $213.8 million, indicating leverage concerns.

Entravision Communications Corporation (NYSE: EVC), a leading global media, marketing and technology company, today announced financial results for the three- and six-month periods ended June 30, 2021.

Second Quarter 2021 Highlights

• Net revenue up 295% over the prior-year period
• Net income attributable to common stockholders up 236% over the prior-year period
• Consolidated Adjusted EBITDA up 932% over the prior-year period
• Operating cash flow up 181% over the prior-year period
• Free cash flow of $12.4 million compared to a loss of $1.4 million in the prior-year period
• Quarterly cash dividend of $0.025 per share

“Entravision had a strong second quarter of 2021 and an even stronger first half of the year. Net revenues for the second quarter improved 295% as compared to the prior-year period, while Adjusted EBITDA increased 932% year-over-year,” said Walter F. Ulloa, Chairman and Chief Executive Officer. “Growth in the quarter was largely driven by our digital business, which is now our largest segment, currently at 73% of consolidated revenues. Our core television and audio businesses also saw sequential and year-over-year revenue improvements, bolstering our overall performance.”

Mr. Ulloa continued, “Our digital segment continues to represent a significant part of the growth of our business. Right after the end of the second quarter we acquired MediaDonuts, a company engaged in the sale and marketing of digital advertising in Southeast Asia. Through the acquisition of MediaDonuts, along with our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, we have now added two digital powerhouses to our platform whose combined leadership, sales, operations and geographic reach further propel our core digital offerings and position us to partner with the world’s leading technology and social platforms."

Quarterly Cash Dividend

The Company also 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 September 30, 2021 to shareholders of record as of the close of business on September 15, 2021, and the common stock will trade ex-dividend on September 14, 2021. The Company currently anticipates that future cash dividends will be paid on a quarterly basis; however, any decision to pay future cash dividends will be subject to approval by the Board.

Non-GAAP Financial Measures

This press release contains certain non-GAAP financial measures as defined by SEC Regulation G. The GAAP financial measure most directly comparable to each of these non-GAAP financial measures, and a table reconciling each of these non-GAAP financial measures to its most directly comparable GAAP financial measure is included beginning on page 10.

Unaudited Financial Highlights

	Three-Month Period												Six-Month Period
	Ended June 30,												Ended June 30,
	2021				2020				% Change				2021				2020				% Change
Net revenue	$	178,410			$	45,116				295	%		$	327,290			$	109,365				199	%
Cost of revenue - digital (1)		109,030				6,447			*					193,786				13,794			*
Operating expenses (2)		41,442				33,037				25	%			81,856				73,307				12	%
Corporate expenses (3)		7,345				5,384				36	%			14,503				12,224				19	%
Foreign currency (gain) loss		(309	)			(155	)			99	%			277				1,353				(80	)%
Consolidated adjusted EBITDA (4)		17,787				1,724				932	%			31,982				11,402				180	%
Free cash flow (5)	$	12,420			$	(1,408	)		*				$	25,449			$	3,821				566	%
Net income (loss)	$	10,476			$	2,338				348	%		$	17,478			$	(33,254	)		*
Net (income) loss attributable to redeemable noncontrolling interest	$	(2,612	)		$	-			*				$	(4,185	)		$	-			*
Net income (loss) attributable to common stockholders	$	7,864			$	2,338				236	%		$	13,293			$	(33,254	)		*
Net income (loss) per share attributable to common stockholders, basic	$	0.09			$	0.03				200	%		$	0.16			$	(0.39	)		*
Net income (loss) per share attributable to common stockholders, diluted	$	0.09			$	0.03				200	%		$	0.15			$	(0.39	)		*
Weighted average common shares outstanding, basic		85,188,182				84,123,530								85,115,310				84,220,649
Weighted average common shares outstanding, diluted		87,777,039				84,669,250								87,382,215				84,220,649

(1)	Consists primarily of the costs of online media acquired from third-party publishers. Media cost is classified as cost of revenue in the period in which the corresponding revenue is recognized.
(2)	Operating expenses includes direct operating and selling, general and administrative expenses. Included in operating expenses are $0.3 million and $0.1 million of non-cash stock-based compensation for the three-month periods ended June 30, 2021 and 2020, respectively, and $0.6 million and $0.2 million of non-cash stock-based compensation for the six-month periods ended June 30, 2021 and 2020, respectively.
(3)	Corporate expenses include $0.8 million and $0.7 million of non-cash stock-based compensation for the three-month periods ended June 30, 2021 and 2020, respectively, and $1.6 million and $1.4 million of non-cash stock-based compensation for the six-month periods ended June 30, 2021 and 2020, respectively.
(4)	Consolidated adjusted EBITDA means net income (loss) plus gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation included in operating and corporate expenses, net interest expense, other operating gain (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from the Federal Communications Commission, or FCC, spectrum incentive auction less related expenses, expenses associated with investments, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings. We use the term consolidated adjusted EBITDA because that measure is defined in the agreement governing our current credit facility (“the 2017 Credit Facility”) and does not include gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation, net interest expense, other income (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from FCC spectrum incentive auction less related expenses, expenses associated with investments, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings.
(5)	Free cash flow is defined as consolidated adjusted EBITDA less cash paid for income taxes, net interest expense, capital expenditures and non-recurring cash expenses plus dividend income, and other operating gain (loss). Net interest expense is defined as interest expense, less non-cash interest expense relating to amortization of debt finance costs, and less interest income.

Unaudited Financial Results

	Three-Month Period
	Ended June 30,
	2021				2020				% Change
Net revenue	$	178,410			$	45,116				295	%
Cost of revenue - digital (1)		109,030				6,447			*
Operating expenses (1)		41,442				33,037				25	%
Corporate expenses (1)		7,345				5,384				36	%
Depreciation and amortization		5,074				3,873				31	%
Impairment charge		112				-			*
Foreign currency (gain) loss		(309	)			(155	)			99	%
Other operating (gain) loss		(523	)			(2,030	)			(74	)%
Operating income (loss)		16,239				(1,440	)		*
Interest expense, net		(1,773	)			(1,485	)			19	%
Dividend income		2				-			*
Income (loss) before income taxes		14,468				(2,925	)		*
Income tax benefit (expense)		(3,992	)			5,263			*
Net income (loss)		10,476				2,338				348	%
Net (income) loss attributable to redeemable noncontrolling interest		(2,612	)			-			*
Net income (loss) attributable to common stockholders	$	7,864			$	2,338				236	%

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

Net revenue in the second quarter of 2021 totaled $178.4 million, up 295% from $45.1 million in the prior-year period. Of the overall increase, approximately $118.8 million was attributable to our digital segment and was primarily due to our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020. In addition, of the overall increase, approximately $7.1 million was attributable to our television segment, primarily due to increases in local and national advertising revenue, partially offset by decreases in political revenue and revenue from spectrum usage rights. Additionally, of the overall increase, approximately $7.3 million was attributable to our radio segment primarily due to increases in local and national advertising revenue, partially offset by a decrease in political revenue.

Cost of revenue in the second quarter of 2021 totaled $109.0 million compared to $6.4 million in the prior-year period. The increase was primarily due to increased costs of revenue associated with the increase in net revenue due to our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020.

Operating expenses in the second quarter of 2021 totaled $41.4 million, up 25% from $33.0 million in the prior-year period. The increase was primarily due to our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, and due to an increase in expenses associated with the increase in advertising revenue, partially offset by decreases in bad debt and salary expense associated with furloughs and layoffs that occurred in 2020.

Corporate expenses in the second quarter of 2021 totaled $7.3 million, up 36% from $5.4 million in the prior-year period. The increase was primarily due to an increase in salaries, audit fees and financial due diligence fees.

	Six-Month Period
	Ended June 30,
	2021				2020				% Change
Net revenue	$	327,290			$	109,365				199	%
Cost of revenue - digital (1)		193,786				13,794			*
Operating expenses (1)		81,856				73,307				12	%
Corporate expenses (1)		14,503				12,224				19	%
Depreciation and amortization		10,258				8,385				22	%
Impairment charge		1,438				39,835				(96	)%
Foreign currency (gain) loss		277				1,353				(80	)%
Other operating (gain) loss		(2,436	)			(2,866	)			(15	)%
Operating income (loss)		27,608				(36,667	)		*
Interest expense, net		(3,350	)			(3,542	)			(5	)%
Dividend income		4				24				(83	)%
Income (loss) before income taxes		24,262				(40,185	)		*
Income tax benefit (expense)		(6,784	)			6,931			*
Net income (loss)		17,478				(33,254	)		*
Net (income) loss attributable to redeemable noncontrolling interest		(4,185	)			-			*
Net income (loss) attributable to common stockholders	$	13,293			$	(33,254	)		*

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

Net revenue for the six-month period of 2021 totaled $327.3 million, up 199% from $109.4 million in the prior-year period. Of the overall increase, approximately $207.0 million was attributable to our digital segment and was primarily due to our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020. In addition, of the overall increase, approximately $3.9 million was attributable to our television segment, primarily due to increases in local and national advertising revenue, and revenue from spectrum usage rights, partially offset by a decrease in political revenue. Additionally, of the overall increase, approximately $6.9 million was attributable to our radio segment primarily due to increases in local and national advertising revenue, partially offset by a decrease in political revenue.

Cost of revenue for the six-month period of 2021 totaled $193.8 million compared to $13.8 million in the prior-year period. The increase was primarily due to increased costs of revenue associated with the increase in net revenue due to our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020.

Operating expenses for the six-month period of 2021 totaled $81.9 million, up 12% from $73.3 million in the prior-year period. The increase was primarily due to our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, and due to an increase in expenses associated with the increase in advertising revenue, partially offset by decreases in bad debt and salary expense associated with furloughs and layoffs that occurred in 2020.

Corporate expenses for the six-month period of 2021 totaled $14.5 million, up 19% from $12.2 million in the prior-year period. The increase was primarily due to an increase in salaries, audit fees and financial due diligence fees.

Balance Sheet and Related Metrics

Cash and marketable securities as of June 30, 2021 totaled approximately $181.9 million. Total debt was $213.8 million. Net of $75 million of cash and marketable securities, total leverage as defined in the Company’s credit agreement was 1.7 times as of June 30, 2021. Net of total accessible cash and marketable securities, total leverage was 0.7 times.

Unaudited Segment Results

	Three-Month Period												Six-Month Period
	Ended June 30,												Ended June 30,
	2021				2020				% Change				2021				2020				% Change
Net Revenue
Digital	$	130,223			$	11,373				1045	%		$	231,705			$	24,704				838	%
Television		34,057				26,955				26	%			70,148				66,154				6	%
Radio		14,130				6,788				108	%			25,437				18,507				37	%
Total	$	178,410			$	45,116				295	%		$	327,290			$	109,365				199	%
Cost of Revenue - digital (1)
Digital	$	109,030			$	6,447			*				$	193,786			$	13,794			*
Operating Expenses (1)
Digital		12,027				6,156				95	%			22,877				13,020				76	%
Television		19,516				17,736				10	%			39,400				39,493				(0	)%
Radio		9,899				9,145				8	%			19,579				20,794				(6	)%
Total	$	41,442			$	33,037				25	%		$	81,856			$	73,307				12	%
Corporate Expenses (1)	$	7,345			$	5,384				36	%		$	14,503			$	12,224				19	%
Consolidated adjusted EBITDA (1)	$	17,787			$	1,724				932	%		$	31,982			$	11,402				180	%

(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 second quarter 2021 results on Thursday, August 5, 2021 at 5 p.m. Eastern Time. To access the conference call, please dial (877) 407-9716 (U.S.) or (201) 493-6779 (Int’l) ten minutes prior to the start time and reference Conference ID number 13720020. The call will also be available via live webcast on the investor relations portion of the Company's website located at www.entravision.com.

About Entravision Communications Corporation

Entravision is a diversified global media, marketing and technology company serving clients throughout the United States and in more than 20 countries across Latin America, Europe, and Southeast Asia. Entravision has 54 television stations and is the largest affiliate group of the Univision and UniMás television networks, and 47 Spanish-language radio stations that feature nationally recognized, award-winning talent. Our dynamic digital portfolio includes Entravision Digital, which serves small- and medium-size businesses in high-density U.S. Latino markets and provides cutting-edge mobile programmatic solutions and demand-side platforms that allow advertisers to execute performance campaigns using machine-learned bidding algorithms. We also offer digital advertising solutions representing major technology platforms in Latin America, through our Cisneros Interactive business, and in Southeast Asia, through our MediaDonuts business. Shares of Entravision Class A Common Stock trade on The New York Stock Exchange under the ticker symbol: EVC. Learn more about all of our media, marketing and technology offerings at entravision.com or connect with us on LinkedIn and Facebook.

Forward-Looking Statements

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

Entravision Communications Corporation Consolidated Balance Sheets (In thousands; unaudited)
		June 30,				December 31,
		2021				2020
ASSETS
Current assets
Cash and cash equivalents		$	171,862			$	119,162
Marketable securities			10,009				27,988
Restricted cash			749				749
Trade receivables, net of allowance for doubtful accounts			141,697				142,004
Assets held for sale			7,248				2,141
Prepaid expenses and other current assets			23,345				18,021
Total current assets			354,910				310,065
Property and equipment, net			66,375				72,004
Intangible assets subject to amortization, net			45,760				49,412
Intangible assets not subject to amortization			211,753				216,653
Goodwill			58,043				58,043
Operating leases right of use asset			33,741				33,525
Other assets			7,436				7,643
Total assets		$	778,018			$	747,345
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of long-term debt		$	3,000			$	3,000
Accounts payable and accrued expenses			141,767				126,849
Operating lease liabilities			7,524				7,290
Total current liabilities			152,291				137,139
Long-term debt, less current maturities, net of unamortized debt issuance costs			208,612				210,454
Long-term operating lease liabilities			31,447				31,775
Other long-term liabilities			3,507				3,732
Deferred income taxes			57,729				54,980
Total liabilities			453,586				438,080
Redeemable noncontrolling interest			37,470				33,285
Stockholders' equity
Class A common stock			6				6
Class B common stock			2				2
Class U common stock			1				1
Additional paid-in capital			826,474				828,813
Accumulated deficit			(538,493	)			(551,786	)
Accumulated other comprehensive income (loss)			(1,028	)			(1,056	)
Total stockholders' equity			286,962				275,980
Total liabilities and stockholders' equity		$	778,018			$	747,345

Entravision Communications Corporation Consolidated Statements of Operations (In thousands, except share and per share data) (Unaudited)
		Three-Month Period								Six-Month Period
		Ended June 30,								Ended June 30,
		2021				2020				2021				2020
Net revenue		$	178,410			$	45,116			$	327,290			$	109,365
Expenses:
Cost of revenue - digital			109,030				6,447				193,786				13,794
Direct operating expenses			28,336				22,140				54,897				48,819
Selling, general and administrative expenses			13,106				10,897				26,959				24,488
Corporate expenses			7,345				5,384				14,503				12,224
Depreciation and amortization			5,074				3,873				10,258				8,385
Impairment charge			112				-				1,438				39,835
Foreign currency (gain) loss			(309	)			(155	)			277				1,353
Other operating (gain) loss			(523	)			(2,030	)			(2,436	)			(2,866	)
			162,171				46,556				299,682				146,032
Operating income (loss)			16,239				(1,440	)			27,608				(36,667	)
Interest expense			(1,856	)			(2,024	)			(3,573	)			(4,704	)
Interest income			83				539				223				1,162
Dividend income			2				-				4				24
Income (loss) before income taxes			14,468				(2,925	)			24,262				(40,185	)
Income tax benefit (expense)			(3,992	)			5,263				(6,784	)			6,931
Net income (loss)			10,476				2,338				17,478				(33,254	)
Net (income) loss attributable to redeemable noncontrolling interest			(2,612	)			-				(4,185	)			-
Net income (loss) attributable to common stockholders		$	7,864			$	2,338			$	13,293			$	(33,254	)
Basic and diluted earnings per share:
Net income (loss) per share attributable to common stockholders, basic		$	0.09			$	0.03			$	0.16			$	(0.39	)
Net income (loss) per share attributable to common stockholders, diluted		$	0.09			$	0.03			$	0.15			$	(0.39	)
Cash dividends declared per common share, basic and diluted		$	0.03			$	0.03			$	0.05			$	0.08
Weighted average common shares outstanding, basic			85,188,182				84,123,530				85,115,310				84,220,649
Weighted average common shares outstanding, diluted			87,777,039				84,669,250				87,382,215				84,220,649

Entravision Communications Corporation Consolidated Statements of Cash Flows (In thousands; unaudited)
		Three-Month Period								Six-Month Period
		Ended June 30,								Ended June 30,
		2021				2020				2021				2020
Cash flows from operating activities:
Net income (loss)		$	10,476			$	2,338			$	17,478			$	(33,254	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization			5,074				3,873				10,258				8,385
Impairment charge			112				—				1,438				39,835
Deferred income taxes			712				(5,585	)			3,699				(7,398	)
Non-cash interest			159				163				298				332
Amortization of syndication contracts			119				128				238				258
Payments on syndication contracts			(115	)			(123	)			(239	)			(253	)
Non-cash stock-based compensation			1,135				803				2,206				1,592
(Gain) loss on disposal of property and equipment			—				(627	)			—				(627	)
Changes in assets and liabilities:
(Increase) decrease in accounts receivable			(9,460	)			12,031				467				19,513
(Increase) decrease in prepaid expenses and other assets			1,732				4,064				2,909				5,090
Increase (decrease) in accounts payable, accrued expenses and other liabilities			10,989				(9,616	)			5,633				(14,010	)
Net cash provided by operating activities			20,933				7,449				44,385				19,463
Cash flows from investing activities:
Proceeds from sale of property and equipment and intangibles			—				3,989				—				3,989
Purchases of property and equipment			(998	)			(3,005	)			(2,836	)			(5,676	)
Purchases of intangible assets			—				(3	)			—				(158	)
Proceeds from marketable securities			5,680				10,243				17,800				26,860
Net cash provided by (used in) investing activities			4,682				11,224				14,964				25,015
Cash flows from financing activities:
Proceeds from stock option exercises			172				—				172				—
Tax payments related to shares withheld for share-based compensation plans			(449	)			(15	)			(458	)			(15	)
Payments on long-term debt			(750	)			(750	)			(1,500	)			(1,500	)
Dividends paid			(2,133	)			(2,104	)			(4,259	)			(6,322	)
Repurchase of Class A common stock			—				—				—				(525	)
Payments of capitalized debt costs			(604	)			—				(604	)			—
Net cash used in financing activities			(3,764	)			(2,869	)			(6,649	)			(8,362	)
Effect of exchange rates on cash, cash equivalents and restricted cash			24				(45	)			—				32
Net increase (decrease) in cash, cash equivalents and restricted cash			21,875				15,759				52,700				36,148
Cash, cash equivalents and restricted cash:
Beginning			150,736				54,246				119,911				33,857
Ending		$	172,611			$	70,005			$	172,611			$	70,005

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								Six-Month Period
		Ended June 30,								Ended June 30,
		2021				2020				2021				2020
Consolidated adjusted EBITDA (1)		$	17,787			$	1,724			$	31,982			$	11,402
EBITDA attributable to redeemable noncontrolling interest			4,254				-				7,091				-
Interest expense			(1,856	)			(2,024	)			(3,573	)			(4,704	)
Interest income			83				539				223				1,162
Dividend income			2				-				4				24
Income tax expense			(3,992	)			5,263				(6,784	)			6,931
Amortization of syndication contracts			(119	)			(129	)			(238	)			(258	)
Payments on syndication contracts			115				123				239				253
Non-cash stock-based compensation included in direct operating expenses			(334	)			(104	)			(650	)			(235	)
Non-cash stock-based compensation included in corporate expenses			(801	)			(699	)			(1,556	)			(1,357	)
Depreciation and amortization			(5,074	)			(3,873	)			(10,258	)			(8,385	)
Impairment charge			(112	)			-				(1,438	)			(39,835	)
Non-recurring cash severance charge			-				(512	)			-				(1,118	)
Other operating gain (loss)			523				2,030				2,436				2,866
Net (income) loss attributable to redeemable noncontrolling interest			(2,612	)			-				(4,185	)			-
Net income (loss) attributable to common stockholders			7,864				2,338				13,293				(33,254	)
Depreciation and amortization			5,074				3,873				10,258				8,385
Impairment charge			112				-				1,438				39,835
Deferred income taxes			712				(5,585	)			3,699				(7,398	)
Non-cash interest			159				163				298				332
Amortization of syndication contracts			119				128				238				258
Payments on syndication contracts			(115	)			(123	)			(239	)			(253	)
Non-cash stock-based compensation			1,135				803				2,206				1,592
(Gain) loss on disposal of property and equipment			-				(627	)			-				(627	)
Net income (loss) attributable to redeemable noncontrolling interest			2,612				-				4,185				-
Changes in assets and liabilities:
(Increase) decrease in accounts receivable			(9,460	)			12,031				467				19,513
(Increase) decrease in prepaid expenses and other assets			1,732				4,064				2,909				5,090
Increase (decrease) in accounts payable, accrued expenses and other liabilities			10,989				(9,616	)			5,633				(14,010	)
Cash flows from operating activities			20,933				7,449				44,385				19,463

(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								Six-Month Period
		Ended June 30,								Ended June 30,
		2021				2020				2021				2020
Consolidated adjusted EBITDA (1)		$	17,787			$	1,724			$	31,982			$	11,402
Net interest expense (1)			(1,614	)			(1,322	)			(3,052	)			(3,210	)
Dividend income			2				-				4				24
Cash paid for income taxes			(3,280	)			(323	)			(3,085	)			(467	)
Capital expenditures (2)			(998	)			(3,005	)			(2,836	)			(5,676	)
Non-recurring cash severance charge			-				(512	)			-				(1,118	)
Other operating gain (loss)			523				2,030				2,436				2,866
Free cash flow (1)			12,420				(1,408	)			25,449				3,821
Capital expenditures (2)			998				3,005				2,836				5,676
EBITDA attributable to redeemable noncontrolling interest			4,254				-				7,091				-
(Gain) loss on disposal of property and equipment			-				(627	)			-				(627	)
Changes in assets and liabilities:
(Increase) decrease in accounts receivable			(9,460	)			12,031				467				19,513
(Increase) decrease in prepaid expenses and other assets			1,732				4,064				2,909				5,090
Increase (decrease) in accounts payable, accrued expenses and other liabilities			10,989				(9,616	)			5,633				(14,010	)
Cash Flows From Operating Activities		$	20,933			$	7,449			$	44,385			$	19,463

(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.

 

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FAQ

What were Entravision's Q2 2021 financial results?

Entravision reported a net revenue of $178.4 million, up 295% from Q2 2020, with net income of $7.9 million.

How did the digital segment perform for Entravision in Q2 2021?

The digital segment drove significant growth, accounting for 73% of total revenue.

When is Entravision's quarterly cash dividend payable?

The quarterly cash dividend of $0.025 per share is payable on September 30, 2021.

What is the significance of MediaDonuts' acquisition for Entravision?

The acquisition of MediaDonuts enhances Entravision's digital advertising capabilities in Southeast Asia.

What were the challenges in Entravision's financial report?

Operating and corporate expenses saw substantial increases, and total debt stood at $213.8 million.