Entravision Communications Corporation Reports Second Quarter 2022 Results

Rhea-AI Summary

Entravision Communications Corporation (NYSE: EVC) reported a record second quarter in 2022, achieving net revenue of $221.7 million, up 24% year-over-year. Net income attributable to common stockholders rose 8% to $8.5 million, while consolidated adjusted EBITDA increased by 26% to $22.5 million. The digital segment led growth with a 34% revenue increase. Operating cash flow, however, decreased 54% from the previous year. The Board declared a quarterly dividend of $0.025 per share and announced a $20 million share repurchase program.

Positive

• Second quarter revenue reached $221.7 million, a 24% increase year-over-year.
• Net income attributable to common stockholders rose 8% to $8.5 million.
• Consolidated adjusted EBITDA increased by 26% to $22.5 million.
• Digital segment revenues improved by 34% year-over-year.
• Quarterly cash dividend of $0.025 per share approved, totaling approximately $2.1 million.

Negative

• Operating cash flow decreased by 54% compared to the prior year.
• Net income for the six-month period fell by 41% year-over-year.

SANTA MONICA, Calif.--(BUSINESS WIRE)-- Entravision Communications Corporation (NYSE: EVC), a leading global advertising solutions, media and technology company, today announced financial results for the three- and six-month periods ended June 30, 2022.

Second Quarter 2022 Highlights

• Record second quarter revenue
• Net revenue up 24% over the prior-year quarter
• Net income attributable to common stockholders up 8% over the prior-year quarter
• Consolidated adjusted EBITDA up 26% over the prior-year quarter
• Operating cash flow down 54% over the prior-year quarter
• Free cash flow up 15% over the prior-year quarter
• Quarterly cash dividend of $0.025 per share
• Repurchased $4.1 million in shares during the second quarter

“The second quarter marked yet another impressive performance for Entravision, with net revenues totaling $221.7 million, up 24% versus the prior year quarter. On a year to date basis, revenues increased even more significantly and were up 28% as compared to the first half of 2021,” said Walter Ulloa, Chairman and Chief Executive Officer. “Strength during the quarter was largely driven by the growth of our digital segment, where revenues improved 34% year-over-year. Our audio segment also contributed to the quarterly revenue increase. Of particular note, political ad spend was very strong during the second quarter, positioning us well in political advertising revenue for the remainder of the year, and further highlights the growing importance of the Hispanic voter in both local and national elections.”

Mr. Ulloa continued, “Entravision is well positioned for continued growth. Our strong balance sheet and exceptional global team of industry-leading digital media and sales professionals provide us with the key components to succeed. At the same time, our continued focus on expense management will help drive our EBITDA, free cash flow and ability to provide consistent returns to shareholders.”

Quarterly Cash Dividend

The Company announced today that its Board of Directors approved a quarterly cash dividend to shareholders of $0.025 per share on the Company's Class A, Class B and Class U common stock, in an aggregate amount of approximately $2.1 million. The quarterly dividend will be payable on September 30, 2022 to shareholders of record as of the close of business on September 15, 2022, and the common stock will trade ex-dividend on September 14, 2022. The Company currently anticipates that future cash dividends will be paid on a quarterly basis; however, any decision to pay future cash dividends will be subject to approval by the Board.

Share Repurchase Program

During the second quarter the Company repurchased $4.1 million of its Class A common stock. As of the end of the second quarter 2022, the Company repurchased a total of $11.3 million shares of its Class A common stock under its $20 million share repurchase program.

Investment in Jack of Digital

The Company has finalized its strategic stake in Jack of Digital, a digital marketing services company that serves as the exclusive advertising sales partner of TikTok in Pakistan. With this investment, the Company enhances its presence in South Asia.

Non-GAAP Financial Measures

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

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

		Three-Month Period												Six-Month Period
		Ended June 30,												Ended June 30,
		2022				2021				% Change				2022				2021				% Change
Net revenue		$	221,695			$	178,410				24	%		$	418,867			$	327,290				28	%
Cost of revenue - digital (1)			144,965				109,030				33	%			274,856				193,786				42	%
Operating expenses (2)			47,371				41,442				14	%			91,233				81,856				11	%
Corporate expenses (3)			8,520				7,345				16	%			17,244				14,503				19	%
Foreign currency (gain) loss			993				(309	)		*					146				277				(47	)%
Consolidated adjusted EBITDA (4)			22,481				17,787				26	%			40,594				31,982				27	%
Free cash flow (5)		$	14,256			$	12,420				15	%		$	28,583			$	25,449				12	%
Net income (loss)		$	8,467			$	10,476				(19	)%		$	10,354			$	17,478				(41	)%
Net (income) loss attributable to redeemable noncontrolling interest		$	-			$	(2,612	)			(100	)%		$	-			$	(4,185	)			(100	)%
Net income (loss) attributable to common stockholders		$	8,467			$	7,864				8	%		$	10,354			$	13,293				(22	)%
Net income (loss) per share attributable to common stockholders, basic		$	0.10			$	0.09				11	%		$	0.12			$	0.16				(25	)%
Net income (loss) per share attributable to common stockholders, diluted		$	0.10			$	0.09				11	%		$	0.12			$	0.15				(20	)%
Weighted average common shares outstanding, basic			84,959,130				85,188,182								85,735,916				85,115,310
Weighted average common shares outstanding, diluted			86,985,817				87,777,039								87,803,178				87,382,215

(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 $0.9 million and $0.3 million of non-cash stock-based compensation for the three-month periods ended June 30, 2022 and 2021, respectively, and $1.9 million and $0.6 million of non-cash stock-based compensation for the six-month periods ended June 30, 2022 and 2021, respectively.
(3)		Corporate expenses include $1.7 million and $0.8 million of non-cash stock-based compensation for the three-month periods ended June 30, 2022 and 2021, respectively, and $3.3 million and $1.6 million of non-cash stock-based compensation for the six-month periods ended June 30, 2022 and 2021, respectively.
(4)		Consolidated adjusted EBITDA means net income (loss) plus gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation included in operating and corporate expenses, net interest expense, other operating gain (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from the Federal Communications Commission, or FCC, spectrum incentive auction less related expenses, expenses associated with investments, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings. We use the term consolidated adjusted EBITDA because that measure is defined in the agreement governing our current credit facility (“the 2017 Credit Facility”) and does not include gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation, net interest expense, other income (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from FCC spectrum incentive auction less related expenses, expenses associated with investments, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings.
(5)		Free cash flow is defined as consolidated adjusted EBITDA less cash paid for income taxes, net interest expense, capital expenditures and non-recurring cash expenses plus dividend income, and other operating gain (loss). Net interest expense is defined as interest expense, less non-cash interest expense relating to amortization of debt finance costs, and less interest income.

Unaudited Financial Results (In thousands)

		Three-Month Period
		Ended June 30,
		2022				2021				% Change
Net revenue		$	221,695			$	178,410				24	%
Cost of revenue - digital (1)			144,965				109,030				33	%
Operating expenses (1)			47,371				41,442				14	%
Corporate expenses (1)			8,520				7,345				16	%
Depreciation and amortization			6,263				5,074				23	%
Change in fair value of contingent consideration			976				-			*
Impairment charge			-				112				(100	)%
Foreign currency (gain) loss			993				(309	)		*
Other operating (gain) loss			(834	)			(523	)			59	%
Operating income (loss)			13,441				16,239				(17	)%
Interest expense, net			(1,612	)			(1,773	)			(9	)%
Dividend income			11				2				450	%
Income (loss) before income taxes			11,840				14,468				(18	)%
Income tax benefit (expense)			(3,373	)			(3,992	)			(16	)%
Net income (loss)			8,467				10,476				(19	)%
Net (income) loss attributable to redeemable noncontrolling interest			-				(2,612	)			(100	)%
Net income (loss) attributable to common stockholders		$	8,467			$	7,864				8	%
(1) Cost of revenue, operating expenses and corporate expenses are defined on page 2.

Net revenue in the second quarter of 2022 totaled $221.7 million, up 24% from $178.4 million in the prior-year period. Of the overall increase, approximately $44.2 million was attributable to our digital segment and was primarily due to advertising revenue growth from our digital commercial partnerships business and our acquisitions of MediaDonuts and 365 Digital during the third and fourth quarters of 2021, respectively, both of which did not contribute to net revenue in the comparable period. In addition, of the overall increase, approximately $0.8 million was attributable to our audio segment primarily due to increases in local advertising revenue and political advertising revenue, partially offset by a decrease in national advertising revenue. The overall increase was partially offset by a decrease of approximately $1.7 million attributable to our television segment, primarily due to decreases in local and national advertising revenue, and a decrease in retransmission consent revenue. These decreases were mainly attributed to the expiration of our Univision and UniMás network affiliation agreements in Orlando, Tampa and Washington, D.C. on December 31, 2021. The decrease in our television segment was partially offset by increases in political advertising revenue and spectrum usage rights revenue.

Cost of revenue in the second quarter of 2022 totaled $145.0 million, up 33% from $109.0 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 our acquisitions of MediaDonuts and 365 Digital during the third and fourth quarters of 2021, respectively, both of which did not incur cost of revenue for us in the comparable period.

Operating expenses in the second quarter of 2022 totaled $47.4 million, up 14% from $41.4 million in the prior-year period. Of the overall increase, approximately $5.2 million was attributable to our digital segment and was primarily due to an increase in expenses associated with the increase in digital advertising revenue, an increase in salary expense and our acquisitions of MediaDonuts and 365 Digital during the third and fourth quarters of 2021, respectively, both of which did not incur operating expenses for us in the comparable period. In addition, of the overall increase in operating expenses, approximately $0.2 million was attributable to our television segment primarily due to an increase in salaries and bad debt expense, partially offset by a decrease in expenses associated with the decrease in local and national advertising revenue. Additionally, of the overall increase in operating expenses, approximately $0.5 million was attributable to our audio segment primarily due to an increase in expenses associated with the increase in advertising revenue.

Corporate expenses in the second quarter of 2022 totaled $8.5 million, up 16% from $7.3 million in the prior-year period. The increase was primarily due to increases in non-cash stock-based compensation and salaries.

Unaudited Financial Results (In thousands)

		Six-Month Period
		Ended June 30,
		2022				2021				% Change
Net revenue		$	418,867			$	327,290				28	%
Cost of revenue - digital (1)			274,856				193,786				42	%
Operating expenses (1)			91,233				81,856				11	%
Corporate expenses (1)			17,244				14,503				19	%
Depreciation and amortization			12,658				10,258				23	%
Change in fair value of contingent consideration			6,076				-			*
Impairment charge			-				1,438				(100	)%
Foreign currency (gain) loss			146				277				(47	)%
Other operating (gain) loss			(953	)			(2,436	)			(61	)%
Operating income (loss)			17,607				27,608				(36	)%
Interest expense, net			(3,042	)			(3,350	)			(9	)%
Dividend income			14				4				250	%
Income (loss) before income taxes			14,579				24,262				(40	)%
Income tax benefit (expense)			(4,225	)			(6,784	)			(38	)%
Net income (loss)			10,354				17,478				(41	)%
Net (income) loss attributable to redeemable noncontrolling interest			-				(4,185	)			(100	)%
Net income (loss) attributable to common stockholders		$	10,354			$	13,293				(22	)%
(1) Cost of revenue, operating expenses and corporate expenses are defined on page 2.

Net revenue for the six-month period of 2022 totaled $418.9 million, up 28% from $327.3 million in the prior-year period. Of the overall increase, approximately $96.4 million was attributable to our digital segment and was primarily due to advertising revenue growth from our digital commercial partnerships business and our acquisitions of MediaDonuts and 365 Digital during the third and fourth quarters of 2021, respectively, both of which did not contribute to net revenue in the comparable period. In addition, of the overall increase, approximately $2.1 million was attributable to our audio segment primarily due to increases in local advertising revenue and political advertising revenue, partially offset by a decrease in national advertising revenue. The overall increase was partially offset by a decrease of approximately $6.9 million attributable to our television segment, primarily due to decreases in local and national advertising revenue, and a decrease in retransmission consent revenue. These decreases were mainly attributed to the expiration of our Univision and UniMás network affiliation agreements in Orlando, Tampa and Washington, D.C. on December 31, 2021. Additionally, the decrease in our television segment was attributed to a decrease in revenue from spectrum usage rights, partially offset by an increase political advertising revenue.

Cost of revenue for the six-month period of 2022 totaled $274.9 million, up 42% from $193.8 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 our acquisitions of MediaDonuts and 365 Digital during the third and fourth quarters of 2021, respectively, both of which did not incur cost of revenue for us in the comparable period.

Operating expenses for the six-month period of 2022 totaled $91.2 million, up 11% from $81.9 million in the prior-year period. Of the overall increase, approximately $9.6 million was attributable to our digital segment and was primarily due to an increase in expenses associated with the increase in digital advertising revenue, an increase in salary expense and our acquisitions of MediaDonuts and 365 Digital during the third and fourth quarters of 2021, respectively, both of which did not incur operating expenses for us in the comparable period. Additionally, of the overall increase in operating expenses, approximately $0.2 million was attributable to our audio segment primarily due to an increase in expenses associated with the increase in advertising revenue. The overall increase in operating expenses was partially offset by a decrease of approximately $0.4 million that was attributable to our television segment primarily due to a decrease in expenses associated with the decrease in local and national advertising revenue, partially offset by an increase in salaries and bad debt expense.

Corporate expenses for the six-month period of 2022 totaled $17.2 million, up 19% from $14.5 million in the prior-year period. The increase was primarily due to increases in non-cash stock-based compensation and salaries.

Balance Sheet and Related Metrics

Cash and marketable securities as of June 30, 2022 totaled approximately $184.2 million. Total debt under the Company’s credit agreement was $210.8 million. Net of $75 million of cash and marketable securities, total leverage as defined in the Company’s credit agreement was 1.4 times as of June 30, 2022. Net of total cash and marketable securities, total leverage was 0.3 times.

Unaudited Segment Results (In thousands)

		Three-Month Period												Six-Month Period
		Ended June 30,												Ended June 30,
		2022				2021				% Change				2022				2021				% Change
Net Revenue
Digital		$	174,378			$	130,223				34	%		$	328,089			$	231,705				42	%
Television			32,373				34,057				(5	)%			63,240				70,148				(10	)%
Audio			14,944				14,130				6	%			27,538				25,437				8	%
Total		$	221,695			$	178,410				24	%		$	418,867			$	327,290				28	%
Cost of Revenue - digital (1)
Digital		$	144,965			$	109,030				33	%		$	274,856			$	193,786				42	%
Operating Expenses (1)
Digital			17,262				12,027				44	%			32,497				22,877				42	%
Television			19,726				19,516				1	%			38,966				39,400				(1	)%
Audio			10,383				9,899				5	%			19,770				19,579				1	%
Total		$	47,371			$	41,442				14	%		$	91,233			$	81,856				11	%
Corporate Expenses (1)		$	8,520			$	7,345				16	%		$	17,244			$	14,503				19	%
Consolidated adjusted EBITDA (1)		$	22,481			$	17,787				26	%		$	40,594			$	31,982				27	%
(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 2022 results on Wednesday, August 3, 2022 at 5 p.m. Eastern Time. To access the conference call, please dial (877) 407-9716 (U.S.) or (201) 493-6779 (Int’l) ten minutes prior to the start time and reference Conference ID number 13730294. The call will also be available via live webcast on the investor relations portion of the Company's website located at www.entravision.com.

About Entravision Communications Corporation

Entravision is a leading global advertising, media and ad-tech solutions company connecting brands to consumers by representing top platforms and publishers. Our dynamic portfolio includes digital, television and audio offerings. Digital, our largest revenue segment, is comprised of four business units: our digital sales representation business; Smadex, our programmatic ad purchasing platform; our branding and mobile performance solutions business; and our digital audio business. Through our digital sales representation business, we connect global media companies such as Meta, Twitter, TikTok and Spotify with advertisers in primarily emerging growth markets worldwide. Smadex is our mobile-first demand side platform, enabling advertisers to execute performance campaigns using machine learning. We also offer a branding and mobile performance solutions business, which provides managed services to advertisers looking to connect with global consumers, primarily on mobile devices, and our digital audio business provides digital audio advertising solutions for advertisers in the Americas. In addition to digital, Entravision has 49 television stations and is the largest affiliate group of the Univision and UniMás television networks. Entravision also manages 45 primarily Spanish-language radio stations that feature nationally recognized, Emmy award-winning talent. Shares of Entravision Class A Common Stock trade on the NYSE under ticker: EVC. Learn more about our offerings at entravision.com or connect with us on LinkedIn and Facebook.

Forward-Looking Statements

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

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,
		2022				2021				2022				2021
Net revenue		$	221,695			$	178,410			$	418,867			$	327,290
Expenses:
Cost of revenue - digital			144,965				109,030				274,856				193,786
Direct operating expenses			29,596				28,336				57,419				54,897
Selling, general and administrative expenses			17,775				13,106				33,814				26,959
Corporate expenses			8,520				7,345				17,244				14,503
Depreciation and amortization			6,263				5,074				12,658				10,258
Change in fair value of contingent consideration			976				-				6,076				-
Impairment charge			-				112				-				1,438
Foreign currency (gain) loss			993				(309	)			146				277
Other operating (gain) loss			(834	)			(523	)			(953	)			(2,436	)
			208,254				162,171				401,260				299,682
Operating income (loss)			13,441				16,239				17,607				27,608
Interest expense			(2,334	)			(1,856	)			(4,170	)			(3,573	)
Interest income			722				83				1,128				223
Dividend income			11				2				14				4
Income (loss) before income taxes			11,840				14,468				14,579				24,262
Income tax benefit (expense)			(3,373	)			(3,992	)			(4,225	)			(6,784	)
Net income (loss)			8,467				10,476				10,354				17,478
Net (income) loss attributable to redeemable noncontrolling interest			-				(2,612	)			-				(4,185	)
Net income (loss) attributable to common stockholders		$	8,467			$	7,864			$	10,354			$	13,293
Basic and diluted earnings per share:
Net income (loss) per share attributable to common stockholders, basic		$	0.10			$	0.09			$	0.12			$	0.16
Net income (loss) per share attributable to common stockholders, diluted		$	0.10			$	0.09			$	0.12			$	0.15
Cash dividends declared per common share, basic and diluted		$	0.03			$	0.03			$	0.05			$	0.05
Weighted average common shares outstanding, basic			84,959,130				85,188,182				85,735,916				85,115,310
Weighted average common shares outstanding, diluted			86,985,817				87,777,039				87,803,178				87,382,215

Entravision Communications Corporation
Consolidated Balance Sheets
(In thousands; unaudited)
		June 30,				December 31,
		2022				2021
ASSETS
Current assets
Cash and cash equivalents		$	109,950			$	185,094
Marketable securities			74,278				-
Restricted cash			750				749
Trade receivables, net of allowance for doubtful accounts			184,872				201,747
Assets held for sale			-				1,963
Prepaid expenses and other current assets			37,029				18,925
Total current assets			406,879				408,478
Property and equipment, net			58,274				62,498
Intangible assets subject to amortization, net			58,931				64,034
Intangible assets not subject to amortization			209,053				209,053
Goodwill			73,273				71,708
Deferred income taxes			1,462				1,462
Operating leases right of use asset			24,356				25,582
Other assets			7,975				8,527
Total assets		$	840,203			$	851,342
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of long-term debt		$	4,795			$	4,903
Accounts payable and accrued expenses			229,953				212,655
Operating lease liabilities			6,097				7,304
Total current liabilities			240,845				224,862
Long-term debt, less current maturities, net of unamortized debt issuance costs			206,218				207,416
Long-term operating lease liabilities			20,802				20,988
Other long-term liabilities			49,135				72,930
Deferred income taxes			67,910				68,220
Total liabilities			584,910				594,416
Stockholders' equity
Class A common stock			6				6
Class B common stock			2				2
Class U common stock			1				1
Additional paid-in capital			769,977				780,388
Accumulated deficit			(512,140	)			(522,494	)
Accumulated other comprehensive income (loss)			(2,553	)			(977	)
Total stockholders' equity			255,293				256,926
Total liabilities and stockholders' equity		$	840,203			$	851,342

Entravision Communications Corporation
Consolidated Statements of Cash Flows
(In thousands; unaudited)
		Three-Month Period								Six-Month Period
		Ended June 30,								Ended June 30,
		2022				2021				2022				2021
Cash flows from operating activities:
Net income (loss)		$	8,467			$	10,476			$	10,354			$	17,478
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization			6,263				5,074				12,658				10,258
Impairment charge			-				112				-				1,438
Deferred income taxes			(2,854	)			712				(3,213	)			3,699
Non-cash interest			431				159				711				298
Amortization of syndication contracts			115				119				231				238
Payments on syndication contracts			(116	)			(115	)			(234	)			(239	)
Non-cash stock-based compensation			2,636				1,135				5,209				2,206
(Gain) loss on disposal of property and equipment			(487	)			-				(638	)			-
Change in fair value of contingent consideration			976				-				6,076				-
Changes in assets and liabilities:
(Increase) decrease in accounts receivable			(11,792	)			(9,460	)			17,588				467
(Increase) decrease in prepaid expenses and other assets			1,153				1,732				(1,252	)			2,909
Increase (decrease) in accounts payable, accrued expenses and other liabilities			4,895				10,989				15,416				5,633
Net cash provided by operating activities			9,687				20,933				62,906				44,385
Cash flows from investing activities:
Proceeds from sale of property and equipment and intangibles			2,507				-				2,671				-
Purchases of property and equipment			(1,662	)			(998	)			(3,209	)			(2,836	)
Purchases of marketable securities			(1,722	)			-				(87,239	)			-
Proceeds from marketable securities			10,499				5,680				10,499				17,800
Net cash provided by (used in) investing activities			9,622				4,682				(77,278	)			14,964
Cash flows from financing activities:
Proceeds from stock option exercises			-				172				218				172
Tax payments related to shares withheld for share-based compensation plans			(10	)			(449	)			(267	)			(458	)
Payments on long-term debt			(750	)			(750	)			(1,500	)			(1,500	)
Dividends paid			(2,124	)			(2,133	)			(4,291	)			(4,259	)
Repurchase of Class A common stock			(4,138	)			-				(11,280	)			-
Payment of contingent consideration			(28,876	)			-				(43,606	)			-
Principal payments under finance lease obligation			(29	)			-				(39	)			-
Payments of capitalized debt costs			—				(604	)			-				(604	)
Net cash used in financing activities			(35,927	)			(3,764	)			(60,765	)			(6,649	)
Effect of exchange rates on cash, cash equivalents and restricted cash			(5	)			24				(6	)			-
Net increase (decrease) in cash, cash equivalents and restricted cash			(16,623	)			21,875				(75,143	)			52,700
Cash, cash equivalents and restricted cash:
Beginning			127,323				150,736				185,843				119,911
Ending		$	110,700			$	172,611			$	110,700			$	172,611

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,
		2022				2021				2022				2021
Consolidated adjusted EBITDA (1)		$	22,481			$	17,787			$	40,594			$	31,982
EBITDA attributable to redeemable noncontrolling interest			-				4,254				-				7,091
Interest expense			(2,334	)			(1,856	)			(4,170	)			(3,573	)
Interest income			722				83				1,128				223
Dividend income			11				2				14				4
Income tax expense			(3,373	)			(3,992	)			(4,225	)			(6,784	)
Amortization of syndication contracts			(115	)			(119	)			(231	)			(238	)
Payments on syndication contracts			116				115				234				239
Non-cash stock-based compensation included in direct operating expenses			(939	)			(334	)			(1,897	)			(650	)
Non-cash stock-based compensation included in corporate expenses			(1,697	)			(801	)			(3,312	)			(1,556	)
Depreciation and amortization			(6,263	)			(5,074	)			(12,658	)			(10,258	)
Change in fair value of contingent consideration			(976	)			-				(6,076	)			-
Impairment charge			-				(112	)			-				(1,438	)
Other operating gain (loss)			834				523				953				2,436
Net (income) loss attributable to redeemable noncontrolling interest			-				(2,612	)			-				(4,185	)
Net income (loss) attributable to common stockholders			8,467				7,864				10,354				13,293
Depreciation and amortization			6,263				5,074				12,658				10,258
Impairment charge			-				112				-				1,438
Deferred income taxes			(2,854	)			712				(3,213	)			3,699
Non-cash interest			431				159				711				298
Amortization of syndication contracts			115				119				231				238
Payments on syndication contracts			(116	)			(115	)			(234	)			(239	)
Non-cash stock-based compensation			2,636				1,135				5,209				2,206
(Gain) loss on disposal of property and equipment			(487	)			-				(638	)			-
Change in fair value of contingent consideration			976				-				6,076				-
Net income (loss) attributable to redeemable noncontrolling interest			-				2,612				-				4,185
Changes in assets and liabilities:
(Increase) decrease in accounts receivable			(11,792	)			(9,460	)			17,588				467
(Increase) decrease in prepaid expenses and other assets			1,153				1,732				(1,252	)			2,909
Increase (decrease) in accounts payable, accrued expenses and other liabilities			4,895				10,989				15,416				5,633
Cash flows from operating activities			9,687				20,933				62,906				44,385

(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,
		2022				2021				2022				2021
Consolidated adjusted EBITDA (1)		$	22,481			$	17,787			$	40,594			$	31,982
Net interest expense (1)			(1,181	)			(1,614	)			(2,331	)			(3,052	)
Dividend income			11				2				14				4
Cash paid for income taxes			(6,227	)			(3,280	)			(7,438	)			(3,085	)
Capital expenditures (2)			(1,662	)			(998	)			(3,209	)			(2,836	)
Other operating gain (loss)			834				523				953				2,436
Free cash flow (1)			14,256				12,420				28,583				25,449
Capital expenditures (2)			1,662				998				3,209				2,836
EBITDA attributable to redeemable noncontrolling interest			-				4,254				-				7,091
(Gain) loss on disposal of property and equipment			(487	)			-				(638	)			-
Changes in assets and liabilities:
(Increase) decrease in accounts receivable			(11,792	)			(9,460	)			17,588				467
(Increase) decrease in prepaid expenses and other assets			1,153				1,732				(1,252	)			2,909
Increase (decrease) in accounts payable, accrued expenses and other liabilities			4,895				10,989				15,416				5,633
Cash Flows From Operating Activities		$	9,687			$	20,933			$	62,906			$	44,385

(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.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220802006195/en/

For more information, please contact:

Christopher T. Young

Chief Financial Officer

Entravision Communications Corporation

310-447-3870

Kimberly Esterkin

ADDO Investor Relations

310-829-5400

evc@addo.com

Source: Entravision Communications Corporation

FAQ

What were Entravision's second quarter 2022 financial results?

Entravision reported second quarter 2022 net revenue of $221.7 million, a 24% increase year-over-year, with net income attributable to common stockholders at $8.5 million.

How much did Entravision's consolidated adjusted EBITDA increase in Q2 2022?

Consolidated adjusted EBITDA for Q2 2022 increased by 26% to $22.5 million.

What is the significance of the digital segment's performance for EVC?

The digital segment's revenue increased by 34% year-over-year, significantly contributing to the overall revenue growth.

What dividend did Entravision announce for its shareholders?

Entravision announced a quarterly dividend of $0.025 per share, payable on September 30, 2022.

What share repurchase program does Entravision have?

Entravision has a $20 million share repurchase program and repurchased $4.1 million of its shares during Q2 2022.