Entravision Communications Corporation Reports Second Quarter 2023 Results

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, 2023.

Second Quarter 2023 Highlights

• Record quarterly advertising revenue
• Net revenue up 23% over the prior-year quarter
• Net loss attributable to common stockholders of $2.0 million compared to net income attributable to common stockholders of $8.5 million in the prior-year quarter
• Consolidated EBITDA down 37% compared to the prior-year quarter
• Operating cash flow up 7% over the prior-year quarter
• Free cash flow down 89% compared to the prior-year quarter
• Quarterly cash dividend of $0.05 per share

“We delivered another strong quarter at Entravision with record quarterly revenue of $273.4 million, increasing 23% year-over-year,” said Chris Young, Chief Financial Officer. “While elevated operating expenses led to a decline in adjusted EBITDA, we remain focused on managing expenses and leveraging our strong balance sheet to ensure we are well-positioned to grow in the current macroeconomic environment. We were also excited to welcome Michael Christenson as our new CEO at the beginning of July. We look forward to continuing to drive growth under his leadership."

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 September 29, 2023 to shareholders of record as of the close of business on September 15, 2023, and the common stock will trade ex-dividend on September 14, 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.

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,
		2023				2022			% Change			2023				2022			% Change
Net revenue		$	273,381			$	221,695		23	%		$	512,387			$	418,867		22	%
Cost of revenue - digital (1)			195,836				144,965		35	%			363,592				274,856		32	%
Operating expenses (2)			56,630				47,371		20	%			109,260				91,233		20	%
Corporate expenses (3)			12,042				8,520		41	%			22,544				17,244		31	%
Foreign currency (gain) loss			697				993		(30	)%			(259	)			146		*
Consolidated EBITDA (4)			14,213				22,481		(37	)%			27,235				40,594		(33	)%
Free cash flow (5)		$	1,558			$	14,256		(89	)%		$	5,466			$	28,583		(81	)%
Net income (loss)		$	(2,001	)		$	8,467		*			$	(302	)		$	10,354		*
Net (income) loss attributable to redeemable noncontrolling interest		$	12			$	-		*			$	12			$	-		*
Net (income) loss attributable to noncontrolling interest		$	-			$	-		*			$	342			$	-		*
Net income (loss) attributable to common stockholders		$	(1,989	)		$	8,467		*			$	52			$	10,354		(99	)%
Net income (loss) per share attributable to common stockholders, basic and diluted		$	(0.02	)		$	0.10		*			$	0.00			$	0.12		(100	)%
Weighted average common shares outstanding, basic			87,787,772				84,959,130						87,706,282				85,735,916
Weighted average common shares outstanding, diluted			87,787,772				86,985,817						89,807,095				87,803,178

(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 $2.7 million and $0.9 million of non-cash stock-based compensation for the three-month periods ended June 30, 2023 and 2022, respectively, and $4.6 million and $1.9 million of non-cash stock-based compensation for the six-month periods ended June 30, 2023 and 2022, respectively.
(3)		Corporate expenses include $3.2 million and $1.7 million of non-cash stock-based compensation for the three-month periods ended June 30, 2023 and 2022, respectively, and $5.4 million and $3.3 million of non-cash stock-based compensation for the six-month periods ended June 30, 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 June 30,
		2023				2022				% Change
Net revenue		$	273,381			$	221,695			23	%
Cost of revenue - digital (1)			195,836				144,965			35	%
Operating expenses (1)			56,630				47,371			20	%
Corporate expenses (1)			12,042				8,520			41	%
Depreciation and amortization			6,509				6,263			4	%
Change in fair value of contingent consideration			1,123				976			15	%
Foreign currency (gain) loss			697				993			(30	)%
Other operating (gain) loss			—				(834	)		(100	)%
Operating income (loss)			544				13,441			(96	)%
Interest expense, net			(3,269	)			(1,612	)		103	%
Dividend income			14				11			27	%
Realized gain (loss) on marketable securities			(29	)			—			*
Income (loss) before income taxes			(2,740	)			11,840			*
Income tax benefit (expense)			739				(3,373	)		*
Net income (loss)			(2,001	)			8,467			*
Net (income) loss attributable to redeemable noncontrolling interest			12				—			*
Net income (loss) attributable to common stockholders		$	(1,989	)		$	8,467			*

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

Net revenue in the second quarter of 2023 totaled $273.4 million, up 23% from $221.7 million in the prior-year period. Of the overall increase, $55.5 million was attributable to our digital segment and was primarily due to advertising revenue growth from our digital commercial partnerships business, and due to various acquisitions, 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 $2.5 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 $1.4 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 second quarter of 2023 totaled $195.8 million, up 35% from $145.0 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 due to various acquisitions, which did not contribute to our financial results in our digital segment in the comparable period.

Operating expenses in the second quarter of 2023 totaled $56.6 million, up 20% from $47.4 million in the prior-year period. Of the overall increase, $7.8 million was attributable to our digital segment and was primarily due to an increase in non-cash stock-based compensation, which is mainly a result of the timing of the 2023 annual restricted stock unit ("RSU") grant to certain employees, which was made in February 2023 compared to the 2022 annual grant, which was made in December 2022, and due to an increase in expenses associated with the increase in digital advertising revenue, an increase in salary expense, and due to various acquisitions, which did not contribute to our financial results in our digital segment in the comparable period. Additionally, of the overall increase in operating expenses, $0.1 million was attributable to our television segment primarily due to an increase in non-cash stock-based compensation, which is mainly a result of the 2023 annual RSU grant timing mentioned above, partially offset by a decrease in bad debt expense. In addition, of the overall increase in operating expenses, $1.3 million was attributable to our audio segment primarily due to an increase in non-cash stock-based compensation, which is mainly a result of the 2023 annual RSU grant timing mentioned above, and due to an increase in salaries and increased rent expense in the temporary office space until the move to our new permanent offices, which was completed in June 2023.

Corporate expenses in the second quarter of 2023 totaled $12.0 million, up 41% from $8.5 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 timing mentioned above, and increases in professional service fees.

		Six-Month Period
		Ended June 30,
		2023				2022				% Change
Net revenue		$	512,387			$	418,867			22	%
Cost of revenue - digital (1)			363,592				274,856			32	%
Operating expenses (1)			109,260				91,233			20	%
Corporate expenses (1)			22,544				17,244			31	%
Depreciation and amortization			12,980				12,658			3	%
Change in fair value of contingent consideration			(2,942	)			6,076			*
Foreign currency (gain) loss			(259	)			146			*
Other operating (gain) loss			—				(953	)		(100	)%
Operating income (loss)			7,212				17,607			(59	)%
Interest expense, net			(6,437	)			(3,042	)		112	%
Dividend income			32				14			129	%
Realized gain (loss) on marketable securities			(61	)			—			*
Gain (loss) on debt extinguishment			(1,556	)			—			*
Income (loss) before income taxes			(810	)			14,579			*
Income tax benefit (expense)			508				(4,225	)		*
Net income (loss)			(302	)			10,354			*
Net (income) loss attributable to redeemable noncontrolling interest			12				—			*
Net (income) loss attributable to noncontrolling interest			342				—			*
Net income (loss) attributable to common stockholders		$	52			$	10,354			(99	)%

Net revenue for the six-month period of 2023 totaled $512.4 million, up 22% from $418.9 million in the prior-year period. Of the overall increase, $98.3 million was attributable to our digital segment and was primarily due to advertising revenue growth from our digital commercial partnerships business, and due to various acquisitions, 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 $2.9 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 $1.7 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 for the six-month period of 2023 totaled $363.6 million, up 32% from $274.9 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 various acquisitions, which did not contribute to our financial results in our digital segment in the comparable period.

Operating expenses for the six-month period of 2023 totaled $109.3 million, up 20% from $91.2 million in the prior-year period. Of the overall increase, $14.1 million was attributable to our digital segment and was primarily due to an increase in non-cash stock-based compensation, which is mainly a result of the 2023 annual RSU grant timing mentioned above, and due to an increase in expenses associated with the increase in digital advertising revenue, an increase in salary expense, and due to various acquisitions, which did not contribute to our financial results in our digital segment in the comparable period. Additionally, of the overall increase in operating expenses, $1.0 million was attributable to our television segment primarily due to an increase in non-cash stock-based compensation, which is mainly a result of the 2023 annual RSU grant timing mentioned above. In addition, of the overall increase in operating expenses, $2.9 million was attributable to our audio segment primarily due to an increase in non-cash stock-based compensation, which is mainly a result of the 2023 annual RSU grant timing mentioned above, and due to an increase in salaries and increased rent expense in the temporary office space until the move to our new permanent offices, which was completed in June 2023.

Corporate expenses for the six-month period of 2023 totaled $22.5 million, up 31% from $17.2 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 timing mentioned above, and increases in professional service fees, audit fees and rent expense.

Balance Sheet and Related Metrics

Cash and marketable securities as of June 30, 2023 totaled $126.5 million. Total debt under the Company’s credit agreement was $210.3 million. Net of $50 million of cash and marketable securities, total leverage as defined in the Company’s credit agreement was 1.8 times as of June 30, 2023. Net of total cash and marketable securities, total leverage was 1.0 times.

Unaudited Segment Results (In thousands)
		Three-Month Period									Six-Month Period
		Ended June 30,									Ended June 30,
		2023			2022			% Change			2023			2022			% Change
Net Revenue
Digital		$	229,896		$	174,378		32	%		$	426,378		$	328,089		30	%
Television			29,943			32,373		(8	)%			60,255			63,240		(5	)%
Audio			13,542			14,944		(9	)%			25,754			27,538		(6	)%
Total		$	273,381		$	221,695		23	%		$	512,387		$	418,867		22	%
Cost of Revenue - digital (1)
Digital		$	195,836		$	144,965		35	%		$	363,592		$	274,856		32	%
Operating Expenses (1)
Digital			25,043			17,262		45	%			46,582			32,497		43	%
Television			19,868			19,726		1	%			39,967			38,966		3	%
Audio			11,719			10,383		13	%			22,711			19,770		15	%
Total		$	56,630		$	47,371		20	%		$	109,260		$	91,233		20	%
Corporate Expenses (1)		$	12,042		$	8,520		41	%		$	22,544		$	17,244		31	%
Consolidated EBITDA (1)		$	14,213		$	22,481		(37	)%		$	27,235		$	40,594		(33	)%

(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 second quarter 2023 results on Thursday, August 3, 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 10180063. 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, X Corp. (formerly known as 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								Six-Month Period
		Ended June 30,								Ended June 30,
		2023				2022				2023				2022
Net revenue		$	273,381			$	221,695			$	512,387			$	418,867
Expenses:
Cost of revenue - digital			195,836				144,965				363,592				274,856
Direct operating expenses			33,065				29,596				62,927				57,419
Selling, general and administrative expenses			23,565				17,775				46,333				33,814
Corporate expenses			12,042				8,520				22,544				17,244
Depreciation and amortization			6,509				6,263				12,980				12,658
Change in fair value of contingent consideration			1,123				976				(2,942	)			6,076
Foreign currency (gain) loss			697				993				(259	)			146
Other operating (gain) loss			—				(834	)			—				(953	)
			272,837				208,254				505,175				401,260
Operating income (loss)			544				13,441				7,212				17,607
Interest expense			(4,306	)			(2,334	)			(8,334	)			(4,170	)
Interest income			1,037				722				1,897				1,128
Dividend income			14				11				32				14
Realized gain (loss) on marketable securities			(29	)			—				(61	)			—
Gain (loss) on debt extinguishment			—				—				(1,556	)			—
Income (loss) before income taxes			(2,740	)			11,840				(810	)			14,579
Income tax benefit (expense)			739				(3,373	)			508				(4,225	)
Net income (loss)			(2,001	)			8,467				(302	)			10,354
Net (income) loss attributable to redeemable noncontrolling interest			12				—				12				—
Net (income) loss attributable to noncontrolling interest			—				—				342				—
Net income (loss) attributable to common stockholders		$	(1,989	)		$	8,467			$	52			$	10,354
Basic and diluted earnings per share:
Net income (loss) per share attributable to common stockholders, basic and diluted		$	(0.02	)		$	0.10			$	0.00			$	0.12
Cash dividends declared per common share, basic and diluted		$	0.05			$	0.03			$	0.10			$	0.05
Weighted average common shares outstanding, basic			87,787,772				84,959,130				87,706,282				85,735,916
Weighted average common shares outstanding, diluted			87,787,772				86,985,817				89,807,095				87,803,178

Entravision Communications Corporation
Consolidated Balance Sheets
(In thousands; unaudited)
		June 30,				December 31,
		2023				2022
ASSETS
Current assets
Cash and cash equivalents		$	99,580			$	110,691
Marketable securities			26,881				44,528
Restricted cash			761				753
Trade receivables, net of allowance for doubtful accounts			210,008				224,713
Assets held for sale			301				—
Prepaid expenses and other current assets			36,655				27,238
Total current assets			374,186				407,923
Property and equipment, net			68,654				61,362
Intangible assets subject to amortization, net			60,089				61,811
Intangible assets not subject to amortization			207,453				207,453
Goodwill			90,706				86,991
Deferred income taxes			2,591				2,591
Operating leases right of use asset			45,204				44,413
Other assets			16,273				8,297
Total assets		$	865,156			$	880,841
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of long-term debt		$	6,799			$	5,256
Accounts payable and accrued expenses			236,276				237,415
Operating lease liabilities			6,397				5,570
Total current liabilities			249,472				248,241
Long-term debt, less current maturities, net of unamortized debt issuance costs			204,574				207,292
Long-term operating lease liabilities			46,863				42,151
Other long-term liabilities			14,538				30,198
Deferred income taxes			68,502				67,590
Total liabilities			583,949				595,472
Redeemable noncontrolling interest			47,288				—
Stockholders' equity
Class A common stock			8				8
Class U common stock			1				1
Additional paid-in capital			739,571				776,298
Accumulated deficit			(504,323	)			(504,375	)
Accumulated other comprehensive income (loss)			(1,338	)			(1,510	)
Total stockholders' equity			233,919				270,422
Noncontrolling interest			-				14,947
Total equity			233,919				285,369
Total liabilities and equity		$	865,156			$	880,841

Entravision Communications Corporation
Consolidated Statements of Cash Flows
(In thousands; unaudited)
		Three-Month Period								Six-Month Period
		Ended June 30,								Ended June 30,
		2023				2022				2023				2022
Cash flows from operating activities:
Net income (loss)		$	(2,001	)		$	8,467			$	(302	)		$	10,354
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization			6,509				6,263				12,980				12,658
Deferred income taxes			76				(2,854	)			(129	)			(3,213	)
Non-cash interest			46				431				179				711
Amortization of syndication contracts			120				115				240				231
Payments on syndication contracts			(121	)			(116	)			(241	)			(234	)
Non-cash stock-based compensation			5,968				2,636				10,021				5,209
(Gain) loss on marketable securities			29				—				61				-
(Gain) loss on disposal of property and equipment			(50	)			(487	)			18				(638	)
(Gain) loss on debt extinguishment			—				—				1,556				—
Change in fair value of contingent consideration			1,123				976				(2,942	)			6,076
Changes in assets and liabilities:
(Increase) decrease in accounts receivable			(15,677	)			(11,792	)			17,480				17,588
(Increase) decrease in prepaid expenses and other current assets, operating leases right of use asset and other assets			(4,245	)			1,153				(3,297	)			(1,252	)
Increase (decrease) in accounts payable, accrued expenses and other liabilities			18,619				4,895				11,467				15,416
Net cash provided by operating activities			10,396				9,687				47,091				62,906
Cash flows from investing activities:
Proceeds from sale of property and equipment and intangibles			50				2,507				50				2,671
Purchases of property and equipment			(8,108	)			(1,662	)			(14,858	)			(3,209	)
Purchase of a business, net of cash acquired			(6,930	)			—				(6,930	)			—
Purchases of marketable securities			(775	)			(1,722	)			(10,172	)			(87,239	)
Proceeds from sale of marketable securities			12,389				10,499				28,093				10,499
Purchases of investments			(80	)			—				(200	)			—
Issuance of loan receivable			(8,086	)			—				(8,086	)			—
Net cash provided by (used in) investing activities			(11,540	)			9,622				(12,103	)			(77,278	)
Cash flows from financing activities:
Proceeds from stock option exercises			241				—				554				218
Tax payments related to shares withheld for share-based compensation plans			(15	)			(10	)			(95	)			(267	)
Payments on debt			(1,497	)			(750	)			(213,245	)			(1,500	)
Dividends paid			(4,396	)			(2,124	)			(8,782	)			(4,291	)
Distributions to noncontrolling interest			(2,834	)			—				(3,380	)			—
Repurchase of Class A common stock			—				(4,138	)			—				(11,280	)
Payment of contingent consideration			(31,710	)			(28,876	)			(31,710	)			(43,606	)
Principal payments under finance lease obligation			(38	)			(29	)			(76	)			(39	)
Proceeds from borrowings on debt			14				—				212,419				—
Payments for debt issuance costs			(492	)			—				(1,777	)			—
Net cash used in financing activities			(40,727	)			(35,927	)			(46,092	)			(60,765	)
Effect of exchange rates on cash, cash equivalents and restricted cash			—				(5	)			1				(6	)
Net increase (decrease) in cash, cash equivalents and restricted cash			(41,871	)			(16,623	)			(11,103	)			(75,143	)
Cash, cash equivalents and restricted cash:
Beginning			142,212				127,323				111,444				185,843
Ending		$	100,341			$	110,700			$	100,341			$	110,700

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								Six-Month Period
		Ended June 30,								Ended June 30,
		2023				2022				2023				2022
Consolidated EBITDA (1)		$	14,213			$	22,481			$	27,235			$	40,594
EBITDA attributable to redeemable noncontrolling interest			417				—				417				—
EBITDA attributable to noncontrolling interest			—				—				230				—
Interest expense			(4,306	)			(2,334	)			(8,334	)			(4,170	)
Interest income			1,037				722				1,897				1,128
Dividend income			14				11				32				14
Realized gain (loss) on marketable securities			(29	)			—				(61	)			—
Income tax expense			739				(3,373	)			508				(4,225	)
Amortization of syndication contracts			(120	)			(115	)			(240	)			(231	)
Payments on syndication contracts			121				116				241				234
Non-cash stock-based compensation included in direct operating expenses			(2,725	)			(939	)			(4,581	)			(1,897	)
Non-cash stock-based compensation included in corporate expenses			(3,243	)			(1,697	)			(5,440	)			(3,312	)
Depreciation and amortization			(6,509	)			(6,263	)			(12,980	)			(12,658	)
Change in fair value of contingent consideration			(1,123	)			(976	)			2,942				(6,076	)
Non-recurring cash severance charge			(487	)			—				(612	)			—
Other operating gain (loss)			—				834				—				953
Gain (loss) on debt extinguishment			—				—				(1,556	)			—
Net (income) loss attributable to redeemable noncontrolling interest			12				—				12				—
Net (income) loss attributable to noncontrolling interest			—				—				342				—
Net income (loss) attributable to common stockholders			(1,989	)			8,467				52				10,354
Depreciation and amortization			6,509				6,263				12,980				12,658
Deferred income taxes			76				(2,854	)			(129	)			(3,213	)
Non-cash interest			46				431				179				711
Amortization of syndication contracts			120				115				240				231
Payments on syndication contracts			(121	)			(116	)			(241	)			(234	)
Non-cash stock-based compensation			5,968				2,636				10,021				5,209
Realized (gain) loss on marketable securities			29				—				61				—
(Gain) loss on debt extinguishment			—				—				1,556				—
(Gain) loss on disposal of property and equipment			(50	)			(487	)			18				(638	)
Change in fair value of contingent consideration			1,123				976				(2,942	)			6,076
Net income (loss) attributable to redeemable noncontrolling interest			(12	)			—				(12	)			—
Net income (loss) attributable to noncontrolling interest			—				—				(342	)			—
Changes in assets and liabilities:
(Increase) decrease in accounts receivable			(15,677	)			(11,792	)			17,480				17,588
(Increase) decrease in prepaid expenses and other current assets, operating leases right of use asset and other assets			(4,245	)			1,153				(3,297	)			(1,252	)
Increase (decrease) in accounts payable, accrued expenses and other liabilities			18,619				4,895				11,467				15,416
Cash flows from operating activities			10,396				9,687				47,091				62,906

(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								Six-Month Period
		Ended June 30,								Ended June 30,
		2023				2022				2023				2022
Consolidated EBITDA (1)		$	14,213			$	22,481			$	27,235			$	40,594
Net interest expense (1)			(3,223	)			(1,181	)			(6,258	)			(2,331	)
Dividend income			14				11				32				14
Cash paid for income taxes			(3,510	)			(6,227	)			(3,582	)			(7,438	)
Capital expenditures (2)			(8,108	)			(1,662	)			(14,858	)			(3,209	)
Landlord incentive reimbursement			2,659				—				3,509				—
Non-recurring cash severance charge			(487	)			—				(612	)			—
Other operating gain (loss)			—				834				—				953
Free cash flow (1)			1,558				14,256				5,466				28,583
Capital expenditures (2)			8,108				1,662				14,858				3,209
Landlord incentive reimbursement			(2,659	)			—				(3,509	)			—
EBITDA attributable to redeemable noncontrolling interest			417				—				417				—
EBITDA attributable to noncontrolling interest			—				—				230				—
(Gain) loss on disposal of property and equipment			(50	)			(487	)			18				(638	)
Cash paid for income taxes			3,510				6,227				3,582				7,438
Deferred income taxes			76				(2,854	)			(129	)			(3,213	)
Income tax (expense) benefit			739				(3,373	)			508				(4,225	)
Changes in assets and liabilities:
(Increase) decrease in accounts receivable			(15,677	)			(11,792	)			17,480				17,588
(Increase) decrease in prepaid expenses and other current assets, operating leases right of use asset and other assets			(4,245	)			1,153				(3,297	)			(1,252	)
Increase (decrease) in accounts payable, accrued expenses and other liabilities			18,619				4,895				11,467				15,416
Cash Flows From Operating Activities		$	10,396			$	9,687			$	47,091			$	62,906

(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/20230802877383/en/

Christopher T. Young

Chief Financial Officer and Treasurer

Entravision Communications Corporation

310-447-3870



Kimberly Orlando

ADDO Investor Relations

310-829-5400

evc@addo.com

Source: Entravision Communications Corporation