Entravision Communications Corporation Reports Second Quarter 2024 Results
Entravision Communications (NYSE: EVC) announced its financial results for Q2 2024. The company reported an increase in net revenue from continuing operations by 12% year-over-year to $82.7 million, primarily driven by digital advertising. Net income from continuing operations was $3.7 million, a significant turnaround from a loss of $5.8 million in Q2 2023.
However, the company reported a loss of $35.4 million from discontinued operations due to the sale of its digital commercial partnerships business, EGP. Despite this, cash flows from operating activities grew by 70% to $17.7 million, and free cash flow surged 586% to $15.7 million.
Additionally, Entravision declared a quarterly cash dividend of $0.05 per share, payable on September 30, 2024. The company emphasized its focus on maximizing political revenue and enhancing its digital marketing solutions.
Entravision Communications (NYSE: EVC) ha annunciato i risultati finanziari per il secondo trimestre del 2024. L'azienda ha registrato un aumento del 12% su base annua dei ricavi netti dalle operazioni continuative, raggiungendo i 82,7 milioni di dollari, principalmente grazie alla pubblicità digitale. L'utile netto delle operazioni continuative è stato di 3,7 milioni di dollari, un significativo recupero rispetto a una perdita di 5,8 milioni di dollari nel Q2 2023.
Tuttavia, l'azienda ha riportato una perdita di 35,4 milioni di dollari dalle operazioni dismesse a causa della vendita della sua attività di partnership commerciali digitali, EGP. Nonostante ciò, i flussi di cassa dalle attività operative sono cresciuti del 70%, arrivando a 17,7 milioni di dollari, e il flusso di cassa libero è aumentato del 586%, raggiungendo i 15,7 milioni di dollari.
Inoltre, Entravision ha dichiarato un dividendo in contante trimestrale di 0,05 dollari per azione, che sarà pagabile il 30 settembre 2024. L'azienda ha sottolineato il suo impegno a massimizzare i ricavi politici e a migliorare le sue soluzioni di marketing digitale.
Entravision Communications (NYSE: EVC) anunció sus resultados financieros para el segundo trimestre de 2024. La empresa reportó un aumento del 12% interanual en los ingresos netos de operaciones continuas, alcanzando los 82,7 millones de dólares, impulsado principalmente por la publicidad digital. La ganancia neta de las operaciones continuas fue de 3,7 millones de dólares, un cambio significativo respecto a una pérdida de 5,8 millones de dólares en el Q2 de 2023.
No obstante, la empresa reportó una pérdida de 35,4 millones de dólares de operaciones discontinuadas debido a la venta de su negocio de asociaciones comerciales digitales, EGP. A pesar de eso, los flujos de efectivo de las actividades operativas crecieron un 70%, alcanzando los 17,7 millones de dólares, y el flujo de caja libre se disparó un 586%, llegando a 15,7 millones de dólares.
Además, Entravision declaró un dividendo en efectivo trimestral de 0,05 dólares por acción, que se pagará el 30 de septiembre de 2024. La empresa enfatizó su enfoque en maximizar los ingresos políticos y mejorar sus soluciones de marketing digital.
Entravision Communications (NYSE: EVC)는 2024년 2분기 재무 결과를 발표했습니다. 이 회사는 디지털 광고에서 주로 발생한 매출 증가로 인해 계속 운영에서 순매출이 전년 대비 12% 증가하여 8270만 달러에 달했다고 보고했습니다. 계속 운영에서의 순이익은 370만 달러로, 2023년 2분기에는 580만 달러의 손실에서 상당한 회복을 보였습니다.
그러나 회사는 디지털 상업 파트너십 사업인 EGP를 매각하여 중단된 운영에서 3540만 달러의 손실을 기록했습니다. 그럼에도 불구하고 운영 활동에서의 현금 흐름은 70% 증가하여 1770만 달러에 이르렀으며, 자유 현금 흐름은 586% 증가하여 1570만 달러에 달했습니다.
또한 Entravision은 2024년 9월 30일에 지급될 1주당 0.05달러의 분기 현금 배당을 선언했습니다. 회사는 정치적 수익을 극대화하고 디지털 마케팅 솔루션을 강화하는 데 주력하고 있음을 강조했습니다.
Entravision Communications (NYSE: EVC) a annoncé ses résultats financiers pour le deuxième trimestre 2024. L'entreprise a rapporté une augmentation de 12 % des revenus nets provenant des opérations continues par rapport à l'année précédente, atteignant 82,7 millions de dollars, principalement grâce à la publicité numérique. Le bénéfice net des opérations continues s'est élevé à 3,7 millions de dollars, marquant un retournement significatif par rapport à une perte de 5,8 millions de dollars au deuxième trimestre 2023.
Cependant, l'entreprise a signalé une perte de 35,4 millions de dollars provenant des opérations abandonnées en raison de la vente de son activité de partenariats commerciaux numériques, EGP. Malgré cela, les flux de trésorerie provenant des activités opérationnelles ont augmenté de 70 % pour atteindre 17,7 millions de dollars, et le flux de trésorerie libre a bondi de 586 % pour atteindre 15,7 millions de dollars.
De plus, Entravision a déclaré un dividende en espèces trimestriel de 0,05 dollar par action, payable le 30 septembre 2024. L'entreprise a souligné son engagement à maximiser les revenus politiques et à améliorer ses solutions de marketing numérique.
Entravision Communications (NYSE: EVC) hat seine finanziellen Ergebnisse für das 2. Quartal 2024 bekannt gegeben. Das Unternehmen berichtete von einem Anstieg des Netto-Umsatzes aus fortgeführten Aktivitäten um 12% im Jahresvergleich auf 82,7 Millionen Dollar, der hauptsächlich durch digitale Werbung angetrieben wurde. Der Nettogewinn aus fortgeführten Aktivitäten betrug 3,7 Millionen Dollar, was eine erhebliche Wende im Vergleich zu einem Verlust von 5,8 Millionen Dollar im Q2 2023 darstellt.
Allerdings verzeichnete das Unternehmen einen Verlust von 35,4 Millionen Dollar aus aufgegebenen Aktivitäten aufgrund des Verkaufs seines Geschäfts mit digitalen Handels-Partnerschaften, EGP. Trotz dessen wuchsen die Cashflows aus den operativen Aktivitäten um 70% auf 17,7 Millionen Dollar, und der freie Cashflow stieg um 586% auf 15,7 Millionen Dollar.
Zusätzlich erklärte Entravision eine vierteljährliche Bardividende von 0,05 Dollar pro Aktie, die am 30. September 2024 zahlbar ist. Das Unternehmen betonte seinen Fokus auf die Maximierung der politischen Einnahmen und die Verbesserung seiner digitalen Marketinglösungen.
- Net revenue increased by 12% year-over-year to $82.7 million.
- Net income from continuing operations was $3.7 million, up from a loss of $5.8 million.
- Cash flows from operating activities grew 70% to $17.7 million.
- Free cash flow surged 586% to $15.7 million.
- Quarterly cash dividend of $0.05 per share declared, payable on September 30, 2024.
- Loss from discontinued operations was $35.4 million.
- Total net income attributable to common stockholders was a loss of $31.7 million.
Insights
Entravision's Q2 2024 results show mixed performance. Net revenue from continuing operations increased
The decision to sell EGP, prompted by Meta's plan to end its Authorized Sales Partners program, marks a significant strategic shift. This move allows Entravision to focus on its media and ad tech businesses, potentially improving long-term profitability.
Despite challenges, the company maintained its
Entravision's Q2 results reflect broader industry trends in media and advertising. The
The company's focus on political revenue in 2024 aligns with the election cycle opportunity. The expansion of news programming in the television segment suggests a strategy to capture audience interest during a high-stakes political year.
The growth of Smadex, Entravision's programmatic ad platform, positions the company well in the rapidly evolving ad tech landscape. This focus on technology-driven solutions could be important for future growth, especially as traditional revenue streams face pressure.
Entravision's strategic pivot towards ad tech, particularly its focus on Smadex, is a forward-thinking move. Programmatic advertising is experiencing rapid growth, with the global market expected to reach
The increase in cloud infrastructure expenses indicates ongoing investment in technological capabilities. This is important for competing in the digital advertising space, where real-time data processing and advanced targeting are becoming increasingly important.
However, the company faces challenges in balancing traditional media operations with digital transformation. The integration of digital marketing solutions with television and audio offerings will be key to leveraging Entravision's diverse media portfolio effectively in the evolving advertising landscape.
Declares Quarterly Cash Dividend of
Discontinues Entravision Global Partners Business
"During the second quarter of 2024 we conducted a review of our digital strategy, operations and cost structure, and made the decision to sell Entravision Global Partners ('EGP'), our global digital commercial partnerships business. The sale was completed during the quarter, and the EGP business is reported as discontinued operations in our financial statements," said Michael Christenson, Chief Executive Officer.
Mr. Christenson continued, "Our net revenue from continuing operations increased
Unaudited Financial Highlights (In thousands, except share and per share data)
|
Three-Month Period |
|
|
Six-Month Period |
|
||||||||||||||||||
|
Ended June 30, |
|
|
Ended June 30, |
|
||||||||||||||||||
|
2024 |
|
|
2023 |
|
|
% Change |
|
|
2024 |
|
|
2023 |
|
|
% Change |
|
||||||
Net revenue |
$ |
82,654 |
|
|
$ |
73,719 |
|
|
|
12 |
% |
|
$ |
160,830 |
|
|
$ |
141,366 |
|
|
|
14 |
% |
Cost of revenue - digital (1) |
|
24,424 |
|
|
|
19,649 |
|
|
|
24 |
% |
|
|
47,082 |
|
|
|
36,516 |
|
|
|
29 |
% |
Operating expenses (2) |
|
46,119 |
|
|
|
41,466 |
|
|
|
11 |
% |
|
|
92,254 |
|
|
|
80,875 |
|
|
|
14 |
% |
Corporate expenses (3) |
|
10,811 |
|
|
|
12,042 |
|
|
|
(10 |
)% |
|
|
23,059 |
|
|
|
22,544 |
|
|
|
2 |
% |
Foreign currency (gain) loss |
|
(24 |
) |
|
|
792 |
|
|
* |
|
|
|
241 |
|
|
|
1,006 |
|
|
|
(76 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net income (loss) from continuing operations |
$ |
3,732 |
|
|
$ |
(5,826 |
) |
|
* |
|
|
$ |
(3,778 |
) |
|
$ |
(13,842 |
) |
|
|
(73 |
)% |
|
Net income (loss) from discontinued operations, net of tax |
$ |
(35,412 |
) |
|
$ |
3,837 |
|
|
* |
|
|
$ |
(76,792 |
) |
|
$ |
13,894 |
|
|
* |
|
||
Net income (loss) attributable to common stockholders |
$ |
(31,680 |
) |
|
$ |
(1,989 |
) |
|
|
1493 |
% |
|
$ |
(80,570 |
) |
|
$ |
52 |
|
|
* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash flows from operating activities |
$ |
17,696 |
|
|
$ |
10,396 |
|
|
|
70 |
% |
|
$ |
51,071 |
|
|
$ |
47,091 |
|
|
|
8 |
% |
Free cash flow (4) |
$ |
15,702 |
|
|
$ |
2,288 |
|
|
|
586 |
% |
|
$ |
46,334 |
|
|
$ |
32,233 |
|
|
|
44 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net income (loss) per share from continuing operations, basic and diluted |
$ |
0.04 |
|
|
$ |
(0.07 |
) |
|
* |
|
|
$ |
(0.04 |
) |
|
$ |
(0.16 |
) |
|
|
(75 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net income (loss) per share from discontinued operations, basic and diluted |
$ |
(0.39 |
) |
|
$ |
0.04 |
|
|
* |
|
|
$ |
(0.86 |
) |
|
$ |
0.16 |
|
|
* |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net income (loss) per share attributable to common stockholders, basic and diluted |
$ |
(0.35 |
) |
|
$ |
(0.02 |
) |
|
|
1650 |
% |
|
$ |
(0.90 |
) |
|
$ |
0.00 |
|
|
* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Weighted average common shares outstanding, basic |
|
89,820,737 |
|
|
|
87,787,772 |
|
|
|
|
|
|
89,669,397 |
|
|
|
87,706,282 |
|
|
|
|
||
Weighted average common shares outstanding, diluted |
|
90,721,280 |
|
|
|
87,787,772 |
|
|
|
|
|
|
89,669,397 |
|
|
|
87,706,282 |
|
|
|
|
||
(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 |
|
(3) |
Corporate expenses include |
|
(4) |
Free cash flow is defined as cash flows from operating activities less cash paid for capital expenditures. |
Net revenue for the three- and six-month periods ended June 30, 2024 increased primarily due to an increase in advertising revenue from our digital business units in our digital segment, and political advertising revenue in our television and audio segments, partially offset by decreases in advertising revenue, spectrum usage rights revenue and retransmission consent revenue in our television segment, and a decrease in advertising revenue in our audio segment.
Cost of revenue for the three- and six-month periods ended June 30, 2024 increased primarily due to the increase in digital advertising revenue.
Operating expenses for the three-month period ended June 30, 2024 increased primarily due to increases in salaries and cloud infrastructure expenses associated with the increase in digital advertising revenue, and an increase in salaries, primarily associated with the expansion of our news programming in our television segment, partially offset by a decrease in rent expense and a decrease in expenses associated with the decrease in advertising revenue in our audio segment.
Operating expenses for the six-month period ended June 30, 2024 increased primarily due to increases in salaries and cloud infrastructure expenses associated with the increase in digital advertising revenue, and an increase in salaries, primarily associated with the expansion of our news programming in our television segment, partially offset by a decrease in rent expense and a decrease in expenses associated with the decrease in advertising revenue in our audio segment.
Corporate expenses for the three-month period ended June 30, 2024 decreased primarily due to a decrease in professional services expense, and a decrease in non-cash stock-based compensation, partially offset by an increase in severance expense.
Corporate expenses for the six-month period ended June 30, 2024 increased primarily due to an increase in severance expense, an increase in non-cash stock-based compensation, and an increase in salaries, partially offset by a decrease in professional services expense.
Sale of EGP
As a result of the communication from Meta on March 4, 2024, that it intended to wind down its Authorized Sales Partners ("ASP") program globally and end its relationship with all of its ASPs, including us, by July 1, 2024, we conducted a thorough review of our digital strategy, operations and cost structure, and during the second quarter of 2024 made the decision to dispose of the operations of EGP, our digital commercial partnerships business. The disposition of EGP will allow us to enhance our strategic focus on our media business and our advertising technology business. The results of the EGP business are reported as discontinued operations in our financial statements.
Quarterly Cash Dividend
The Company announced today that its Board of Directors approved a quarterly cash dividend to shareholders of
Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures as defined by SEC Regulation G. These non-GAAP financial measures include Consolidated EBITDA and Free Cash Flow. 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 8.
Consolidated EBITDA
We use the term “consolidated EBITDA” because that term is defined in our 2023 Credit Agreement. Under the terms of our 2023 Credit Agreement, consolidated EBITDA is a measure that governs several critical aspects of our 2023 Credit Facility, including, among other things, financial covenants with which we must comply and financial ratios which we must maintain in order to borrow funds needed for the operation of our business and with respect to the interest rates that we pay on our 2023 Credit Facility. For example, our 2023 Credit Agreement contains a total net leverage ratio financial covenant. The total net leverage ratio, or the ratio of consolidated total debt (net of up to
Therefore, we believe that it is important to disclose consolidated EBITDA to our investors to understand our compliance with these, and certain other, terms of our 2023 Credit Agreement. While many in the financial community and we consider consolidated EBITDA to be important, it should be considered in addition to, but not as a substitute for or superior to, other measures of financial performance and liquidity prepared in accordance with accounting principles generally accepted in
We calculate Consolidated EBITDA as 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, change in fair value of contingent consideration, non-recurring cash severance and restructuring charge, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings.
Free Cash Flow
We use the term free cash flow as a measure of our liquidity and we believe that it is a useful indicator for potential investors of our ability to implement growth strategies and service our debt. Free cash flow is a non-GAAP measure and should be considered in addition to, but not as a substitute for, information contained in our condensed consolidated statement of cash flows as a measure of liquidity.
We calculate free cash flow as cash flow from operating activities less capital expenditures.
Balance Sheet and Related Metrics
Cash and marketable securities as of June 30, 2024 totaled
Consolidated EBITDA, as defined in our 2023 Credit Agreement was
Unaudited Segment Results (In thousands)
|
Three-Month Period |
|
|
Six-Month Period |
|
||||||||||||||||||
|
Ended June 30, |
|
|
Ended June 30, |
|
||||||||||||||||||
|
2024 |
|
|
2023 |
|
|
% Change |
|
|
2024 |
|
|
2023 |
|
|
% Change |
|
||||||
Net Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Digital |
$ |
41,068 |
|
|
$ |
30,234 |
|
|
|
36 |
% |
|
$ |
79,290 |
|
|
$ |
55,357 |
|
|
|
43 |
% |
Television |
|
28,577 |
|
|
|
29,943 |
|
|
|
(5 |
)% |
|
|
57,126 |
|
|
|
60,255 |
|
|
|
(5 |
)% |
Audio |
|
13,009 |
|
|
|
13,542 |
|
|
|
(4 |
)% |
|
|
24,414 |
|
|
|
25,754 |
|
|
|
(5 |
)% |
Total |
$ |
82,654 |
|
|
$ |
73,719 |
|
|
|
12 |
% |
|
$ |
160,830 |
|
|
$ |
141,366 |
|
|
|
14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cost of Revenue - digital (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Digital |
$ |
24,424 |
|
|
$ |
19,649 |
|
|
|
24 |
% |
|
$ |
47,082 |
|
|
$ |
36,516 |
|
|
|
29 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating Expenses (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Digital |
|
12,779 |
|
|
|
9,879 |
|
|
|
29 |
% |
|
|
24,724 |
|
|
|
18,197 |
|
|
|
36 |
% |
Television |
|
22,635 |
|
|
|
19,868 |
|
|
|
14 |
% |
|
|
45,603 |
|
|
|
39,967 |
|
|
|
14 |
% |
Audio |
|
10,705 |
|
|
|
11,719 |
|
|
|
(9 |
)% |
|
|
21,927 |
|
|
|
22,711 |
|
|
|
(3 |
)% |
Total |
$ |
46,119 |
|
|
$ |
41,466 |
|
|
|
11 |
% |
|
$ |
92,254 |
|
|
$ |
80,875 |
|
|
|
14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Corporate Expenses (1) |
$ |
10,811 |
|
|
$ |
12,042 |
|
|
|
(10 |
)% |
|
$ |
23,059 |
|
|
$ |
22,544 |
|
|
|
2 |
% |
(1) |
Cost of revenue, operating expenses, and corporate expenses are defined on page 2. |
Notice of Conference Call
Entravision will hold a conference call to discuss its second quarter 2024 results on Thursday, August 8, 2024 at 4:30 p.m. Eastern Time. To access the conference call, please dial (877) 407-9716 (
About Entravision Communications Corporation
Entravision is a media and advertising technology company. In the
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, |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net revenue |
|
$ |
82,654 |
|
|
$ |
73,719 |
|
|
$ |
160,830 |
|
|
$ |
141,366 |
|
|
|
|
|
|
|
|
|
|
||||||||
Expenses: |
|
|
|
|
|
|
|
|
||||||||
Cost of revenue - digital |
|
|
24,424 |
|
|
|
19,649 |
|
|
|
47,082 |
|
|
|
36,516 |
|
Direct operating expenses |
|
|
31,756 |
|
|
|
28,856 |
|
|
|
63,557 |
|
|
|
55,458 |
|
Selling, general and administrative expenses |
|
|
14,363 |
|
|
|
12,610 |
|
|
|
28,697 |
|
|
|
25,417 |
|
Corporate expenses |
|
|
10,811 |
|
|
|
12,042 |
|
|
|
23,059 |
|
|
|
22,544 |
|
Depreciation and amortization |
|
|
4,428 |
|
|
|
3,713 |
|
|
|
9,167 |
|
|
|
7,214 |
|
Change in fair value of contingent consideration |
|
|
240 |
|
|
|
21 |
|
|
|
20 |
|
|
|
721 |
|
Foreign currency (gain) loss |
|
|
(24 |
) |
|
|
792 |
|
|
|
241 |
|
|
|
1,006 |
|
|
|
|
85,998 |
|
|
|
77,683 |
|
|
|
171,823 |
|
|
|
148,876 |
|
Operating income (loss) |
|
|
(3,344 |
) |
|
|
(3,964 |
) |
|
|
(10,993 |
) |
|
|
(7,510 |
) |
Interest expense |
|
|
(4,118 |
) |
|
|
(4,195 |
) |
|
|
(8,561 |
) |
|
|
(8,118 |
) |
Interest income |
|
|
577 |
|
|
|
720 |
|
|
|
1,155 |
|
|
|
1,328 |
|
Dividend income |
|
|
— |
|
|
|
14 |
|
|
|
10 |
|
|
|
32 |
|
Realized gain (loss) on marketable securities |
|
|
4 |
|
|
|
(29 |
) |
|
|
(109 |
) |
|
|
(61 |
) |
Gain (loss) on debt extinguishment |
|
|
(51 |
) |
|
|
— |
|
|
|
(91 |
) |
|
|
(1,556 |
) |
Income (loss) before income taxes |
|
|
(6,932 |
) |
|
|
(7,454 |
) |
|
|
(18,589 |
) |
|
|
(15,885 |
) |
Income tax benefit (expense) |
|
|
10,664 |
|
|
|
1,628 |
|
|
|
14,811 |
|
|
|
2,043 |
|
Net income (loss) from continuing operations |
|
|
3,732 |
|
|
|
(5,826 |
) |
|
|
(3,778 |
) |
|
|
(13,842 |
) |
Net income (loss) from discontinued operations, net of tax |
|
|
(35,412 |
) |
|
|
3,837 |
|
|
|
(76,792 |
) |
|
|
13,894 |
|
Net income (loss) attributable to common stockholders |
|
$ |
(31,680 |
) |
|
$ |
(1,989 |
) |
|
$ |
(80,570 |
) |
|
$ |
52 |
|
|
|
|
|
|
|
|
|
|
||||||||
Basic and diluted earnings per share: |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share from continuing operations, basic and diluted |
|
$ |
0.04 |
|
|
$ |
(0.07 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.16 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share from discontinued operations, basic and diluted |
|
$ |
(0.39 |
) |
|
$ |
0.04 |
|
|
$ |
(0.86 |
) |
|
$ |
0.16 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share attributable to common stockholders, basic and diluted |
|
$ |
(0.35 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.90 |
) |
|
$ |
0.00 |
|
|
|
|
|
|
|
|
|
|
||||||||
Cash dividends declared per common share, basic and diluted |
|
$ |
0.05 |
|
|
$ |
0.05 |
|
|
$ |
0.10 |
|
|
$ |
0.10 |
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding, basic |
|
|
89,820,737 |
|
|
|
87,787,772 |
|
|
|
89,669,397 |
|
|
|
87,706,282 |
|
Weighted average common shares outstanding, diluted |
|
|
90,721,280 |
|
|
|
87,787,772 |
|
|
|
89,669,397 |
|
|
|
87,706,282 |
|
Entravision Communications Corporation Consolidated Balance Sheets (In thousands; unaudited) |
||||||||
|
|
June 30, |
|
December 31, |
||||
|
|
2024 |
|
2023 |
||||
ASSETS |
|
|
|
|
||||
Current assets |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
85,136 |
|
|
$ |
67,398 |
|
Marketable securities |
|
|
3,160 |
|
|
|
13,172 |
|
Restricted cash |
|
|
779 |
|
|
|
770 |
|
Trade receivables, net of allowance for doubtful accounts |
|
|
68,847 |
|
|
|
70,082 |
|
Assets held for sale |
|
|
- |
|
|
|
301 |
|
Prepaid expenses and other current assets |
|
|
46,681 |
|
|
|
16,863 |
|
Current assets of discontinued operations |
|
|
- |
|
|
|
217,269 |
|
Total current assets |
|
|
204,603 |
|
|
|
385,855 |
|
Property and equipment, net |
|
|
63,418 |
|
|
|
66,932 |
|
Intangible assets subject to amortization, net |
|
|
5,372 |
|
|
|
7,100 |
|
Intangible assets not subject to amortization |
|
|
195,174 |
|
|
|
195,174 |
|
Goodwill |
|
|
50,673 |
|
|
|
50,674 |
|
Deferred income taxes |
|
|
87 |
|
|
|
265 |
|
Operating leases right of use asset |
|
|
42,799 |
|
|
|
42,868 |
|
Other assets |
|
|
7,480 |
|
|
|
21,223 |
|
Noncurrent assets of discontinued operations |
|
|
- |
|
|
|
95,855 |
|
Total assets |
|
$ |
569,606 |
|
|
$ |
865,946 |
|
|
|
|
|
|
||||
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
||||
Current liabilities |
|
|
|
|
||||
Current maturities of long-term debt |
|
$ |
- |
|
|
$ |
8,750 |
|
Accounts payable and accrued expenses |
|
|
59,547 |
|
|
|
47,776 |
|
Operating lease liabilities |
|
|
7,736 |
|
|
|
6,748 |
|
Current liabilities of discontinued operations |
|
|
- |
|
|
|
208,779 |
|
Total current liabilities |
|
|
67,283 |
|
|
|
272,053 |
|
Long-term debt, less current maturities, net of unamortized debt issuance costs |
|
|
186,847 |
|
|
|
197,884 |
|
Long-term operating lease liabilities |
|
|
44,127 |
|
|
|
45,178 |
|
Other long-term liabilities |
|
|
4,370 |
|
|
|
4,624 |
|
Deferred income taxes |
|
|
46,571 |
|
|
|
46,849 |
|
Noncurrent liabilities of discontinued operations |
|
|
- |
|
|
|
33,072 |
|
Total liabilities |
|
|
349,198 |
|
|
|
599,660 |
|
|
|
|
|
|
||||
Redeemable noncontrolling interest - discontinued operations |
|
|
- |
|
|
|
43,758 |
|
Stockholders' equity |
|
|
|
|
||||
Class A common stock |
|
|
8 |
|
|
|
8 |
|
Class U common stock |
|
|
1 |
|
|
|
1 |
|
Additional paid-in capital |
|
|
821,590 |
|
|
|
743,246 |
|
Accumulated deficit |
|
|
(600,382 |
) |
|
|
(519,812 |
) |
Accumulated other comprehensive income (loss) |
|
|
(809 |
) |
|
|
(915 |
) |
Total stockholders' equity |
|
|
220,408 |
|
|
|
222,528 |
|
Total liabilities, redeemable noncontrolling interest and equity |
|
$ |
569,606 |
|
|
$ |
865,946 |
|
Entravision Communications Corporation Consolidated Statements of Cash Flows (In thousands; unaudited) |
||||||||||||||||
|
|
Three-Month Period |
|
Six-Month Period |
||||||||||||
|
|
Ended June 30, |
|
Ended June 30, |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
|
$ |
(31,680 |
) |
|
$ |
(1,989 |
) |
|
$ |
(80,570 |
) |
|
$ |
52 |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
|
5,992 |
|
|
|
6,509 |
|
|
|
13,125 |
|
|
|
12,980 |
|
Impairment charge |
|
|
— |
|
|
|
— |
|
|
|
49,438 |
|
|
|
— |
|
Deferred income taxes |
|
|
4,438 |
|
|
|
76 |
|
|
|
214 |
|
|
|
(129 |
) |
Non-cash interest |
|
|
68 |
|
|
|
46 |
|
|
|
160 |
|
|
|
179 |
|
Amortization of syndication contracts |
|
|
114 |
|
|
|
120 |
|
|
|
227 |
|
|
|
240 |
|
Payments on syndication contracts |
|
|
(114 |
) |
|
|
(121 |
) |
|
|
(229 |
) |
|
|
(241 |
) |
Non-cash stock-based compensation |
|
|
3,287 |
|
|
|
5,968 |
|
|
|
8,734 |
|
|
|
10,021 |
|
(Gain) loss on marketable securities |
|
|
(4 |
) |
|
|
29 |
|
|
|
109 |
|
|
|
61 |
|
(Gain) loss on disposal of property and equipment |
|
|
86 |
|
|
|
(50 |
) |
|
|
183 |
|
|
|
18 |
|
Loss (gain) on the sale of businesses |
|
|
45,014 |
|
|
|
— |
|
|
|
45,014 |
|
|
|
— |
|
(Gain) loss on debt extinguishment |
|
|
51 |
|
|
|
— |
|
|
|
91 |
|
|
|
1,556 |
|
Change in fair value of contingent consideration |
|
|
(11,128 |
) |
|
|
1,123 |
|
|
|
(12,548 |
) |
|
|
(2,942 |
) |
Net income (loss) attributable to redeemable noncontrolling interest - discontinued operations |
|
|
— |
|
|
|
(12 |
) |
|
|
(2,779 |
) |
|
|
(12 |
) |
Net income (loss) attributable to noncontrolling interest - discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(342 |
) |
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
||||||||
(Increase) decrease in accounts receivable |
|
|
(19,887 |
) |
|
|
(15,677 |
) |
|
|
9,586 |
|
|
|
17,480 |
|
(Increase) decrease in prepaid expenses and other current assets, operating leases right of use asset and other assets |
|
|
(12,440 |
) |
|
|
(4,245 |
) |
|
|
(19,590 |
) |
|
|
(3,297 |
) |
Increase (decrease) in accounts payable, accrued expenses and other liabilities |
|
|
33,899 |
|
|
|
18,619 |
|
|
|
39,906 |
|
|
|
11,467 |
|
Net cash provided by operating activities |
|
|
17,696 |
|
|
|
10,396 |
|
|
|
51,071 |
|
|
|
47,091 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
||||||||
Proceeds from sale of businesses, net of cash divested |
|
|
(42,967 |
) |
|
|
— |
|
|
|
(42,967 |
) |
|
|
— |
|
Proceeds from sale of assets |
|
|
— |
|
|
|
50 |
|
|
|
— |
|
|
|
50 |
|
Purchases of property and equipment |
|
|
(1,994 |
) |
|
|
(8,108 |
) |
|
|
(4,737 |
) |
|
|
(14,858 |
) |
Purchase of a business, net of cash acquired |
|
|
— |
|
|
|
(6,930 |
) |
|
|
— |
|
|
|
(6,930 |
) |
Purchases of marketable securities |
|
|
— |
|
|
|
(775 |
) |
|
|
— |
|
|
|
(10,172 |
) |
Proceeds from sale of marketable securities |
|
|
1,177 |
|
|
|
12,389 |
|
|
|
10,019 |
|
|
|
28,093 |
|
Proceeds from loan receivable |
|
|
10,748 |
|
|
|
— |
|
|
|
10,748 |
|
|
|
— |
|
Purchases of investments |
|
|
— |
|
|
|
(80 |
) |
|
|
— |
|
|
|
(200 |
) |
Issuance of loan receivable |
|
|
— |
|
|
|
(8,086 |
) |
|
|
— |
|
|
|
(8,086 |
) |
Net cash provided by (used in) investing activities |
|
|
(33,036 |
) |
|
|
(11,540 |
) |
|
|
(26,937 |
) |
|
|
(12,103 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
||||||||
Proceeds from stock option exercises |
|
|
— |
|
|
|
241 |
|
|
|
— |
|
|
|
554 |
|
Tax payments related to shares withheld for share-based compensation plans |
|
|
— |
|
|
|
(15 |
) |
|
|
(27 |
) |
|
|
(95 |
) |
Payments on debt |
|
|
(10,000 |
) |
|
|
(1,497 |
) |
|
|
(20,275 |
) |
|
|
(213,245 |
) |
Dividends paid |
|
|
(4,496 |
) |
|
|
(4,396 |
) |
|
|
(8,972 |
) |
|
|
(8,782 |
) |
Distributions to noncontrolling interest |
|
|
— |
|
|
|
(2,834 |
) |
|
|
(1,078 |
) |
|
|
(3,380 |
) |
Payment of contingent consideration |
|
|
(13,400 |
) |
|
|
(31,710 |
) |
|
|
(14,300 |
) |
|
|
(31,710 |
) |
Principal payments under finance lease obligation |
|
|
(33 |
) |
|
|
(38 |
) |
|
|
(74 |
) |
|
|
(76 |
) |
Proceeds from borrowings on debt |
|
|
— |
|
|
|
14 |
|
|
|
— |
|
|
|
212,419 |
|
Payments for debt issuance costs |
|
|
— |
|
|
|
(492 |
) |
|
|
— |
|
|
|
(1,777 |
) |
Net cash provided by (used in) financing activities |
|
|
(27,929 |
) |
|
|
(40,727 |
) |
|
|
(44,726 |
) |
|
|
(46,092 |
) |
Effect of exchange rates on cash, cash equivalents and restricted cash |
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
|
|
1 |
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
|
(43,269 |
) |
|
|
(41,871 |
) |
|
|
(20,594 |
) |
|
|
(11,103 |
) |
Cash, cash equivalents and restricted cash: |
|
|
|
|
|
|
|
|
||||||||
Beginning |
|
|
129,184 |
|
|
|
142,212 |
|
|
|
106,509 |
|
|
|
111,444 |
|
Ending |
|
$ |
85,915 |
|
|
$ |
100,341 |
|
|
$ |
85,915 |
|
|
$ |
100,341 |
|
Entravision Communications Corporation Reconciliation of Consolidated EBITDA to Net income (loss) attributable to common stockholders (In thousands; unaudited) |
||||||||||||||||
The most directly comparable GAAP financial measure is net income (loss) attributable to common stockholders. A reconciliation of this non-GAAP measure to net income (loss) attributable to common stockholders for each of the periods presented is as follows: |
||||||||||||||||
|
|
Three-Month Period |
|
Six-Month Period |
||||||||||||
|
|
Ended June 30, |
|
Ended June 30, |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net income (loss) attributable to common stockholders |
|
$ |
(31,680 |
) |
|
$ |
(1,989 |
) |
|
$ |
(80,570 |
) |
|
$ |
52 |
|
Net income (loss) attributable to redeemable noncontrolling interest - discontinued operations |
|
|
— |
|
|
|
(12 |
) |
|
|
(2,779 |
) |
|
|
(12 |
) |
Net income (loss) attributable to noncontrolling interest - discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(342 |
) |
Interest expense |
|
|
4,118 |
|
|
|
4,195 |
|
|
|
8,561 |
|
|
|
8,118 |
|
Interest expense - discontinued operations |
|
|
103 |
|
|
|
111 |
|
|
|
219 |
|
|
|
216 |
|
Interest income |
|
|
(577 |
) |
|
|
(720 |
) |
|
|
(1,155 |
) |
|
|
(1,328 |
) |
Interest income - discontinued operations |
|
|
(179 |
) |
|
|
(317 |
) |
|
|
(731 |
) |
|
|
(569 |
) |
Dividend income |
|
|
— |
|
|
|
(14 |
) |
|
|
(10 |
) |
|
|
(32 |
) |
Realized gain (loss) on marketable securities |
|
|
(4 |
) |
|
|
29 |
|
|
|
109 |
|
|
|
61 |
|
(Gain) loss on debt extinguishment |
|
|
51 |
|
|
|
— |
|
|
|
91 |
|
|
|
1,556 |
|
Income tax expense |
|
|
(10,664 |
) |
|
|
(1,628 |
) |
|
|
(14,811 |
) |
|
|
(2,043 |
) |
Income tax expense - discontinued operations |
|
|
3,010 |
|
|
|
889 |
|
|
|
(645 |
) |
|
|
1,535 |
|
Amortization of syndication contracts |
|
|
114 |
|
|
|
120 |
|
|
|
227 |
|
|
|
240 |
|
Payments on syndication contracts |
|
|
(114 |
) |
|
|
(121 |
) |
|
|
(229 |
) |
|
|
(241 |
) |
Non-cash stock-based compensation |
|
|
3,287 |
|
|
|
5,968 |
|
|
|
8,734 |
|
|
|
10,021 |
|
Depreciation and amortization |
|
|
4,428 |
|
|
|
3,713 |
|
|
|
9,167 |
|
|
|
7,214 |
|
Depreciation and amortization - discontinued operations |
|
|
1,564 |
|
|
|
2,796 |
|
|
|
3,958 |
|
|
|
5,766 |
|
Change in fair value of contingent consideration |
|
|
240 |
|
|
|
21 |
|
|
|
20 |
|
|
|
721 |
|
Change in fair value of contingent consideration - discontinued operations |
|
|
(11,368 |
) |
|
|
1,102 |
|
|
|
(12,568 |
) |
|
|
(3,663 |
) |
Impairment charge - discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
49,438 |
|
|
|
— |
|
Non-recurring cash severance and restructuring charge |
|
|
3,127 |
|
|
|
487 |
|
|
|
3,127 |
|
|
|
612 |
|
Other operating (gain) loss - discontinued operations |
|
|
45,014 |
|
|
|
— |
|
|
|
45,014 |
|
|
|
— |
|
EBITDA attributable to redeemable noncontrolling interest - discontinued operations |
|
|
— |
|
|
|
(417 |
) |
|
|
(167 |
) |
|
|
(417 |
) |
EBITDA attributable to noncontrolling interest - discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(230 |
) |
Consolidated EBITDA (1) |
|
$ |
10,470 |
|
|
$ |
14,213 |
|
|
$ |
15,000 |
|
|
$ |
27,235 |
|
(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 cash flows from operating activities. 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, |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Cash flows from operating activities |
|
$ |
17,696 |
|
|
$ |
10,396 |
|
|
$ |
51,071 |
|
|
$ |
47,091 |
|
Cash paid for capital expenditures (2) |
|
|
(1,994 |
) |
|
|
(8,108 |
) |
|
|
(4,737 |
) |
|
|
(14,858 |
) |
Free cash flow (1) |
|
$ |
15,702 |
|
|
$ |
2,288 |
|
|
$ |
46,334 |
|
|
$ |
32,233 |
|
(1) |
Free cash flow is 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/20240808999947/en/
Mark Boelke
Chief Financial Officer
Entravision
310-447-3870
ir@entravision.com
Roy Nir
VP, Financial Reporting and Investor Relations
Entravision
310-447-3870
ir@entravision.com
Source: Entravision Communications Corporation
FAQ
What were Entravision's earnings results for Q2 2024?
What was the loss from discontinued operations for EVC in Q2 2024?
Did Entravision declare any dividend for Q2 2024?
How did Entravision’s cash flow from operating activities perform in Q2 2024?
What is the increase in free cash flow for Entravision in Q2 2024?
