Entravision Communications Corporation Reports Third Quarter 2021 Results

Rhea-AI Summary

Entravision Communications Corporation (NYSE: EVC) reported impressive financial results for Q3 and the nine-month period ended September 30, 2021. The company achieved a 216% increase in net revenue compared to the previous year, totaling $199 million. Net income attributable to common stockholders rose by 35%, reaching $12.1 million. Furthermore, the company completed significant acquisitions, including a full ownership of Cisneros Interactive and entries into Southeast Asia and Africa through MediaDonuts and 365 Digital, respectively. A quarterly cash dividend of $0.025 per share was also announced.

Positive

• Net revenue increased by 216% year-over-year, reaching $199 million.
• Net income attributable to common stockholders rose 35% to $12.1 million.
• Consolidated Adjusted EBITDA grew by 42% to $23.2 million.
• Free cash flow surged 112% to $22.4 million.
• Successful acquisitions enhance digital segment and expand geographic presence.

Negative

• Operating expenses increased 27% to $43.1 million.
• Cost of revenue soared to $124.3 million, compared to $7.8 million a year prior.

SANTA MONICA, Calif.--(BUSINESS WIRE)-- Entravision Communications Corporation (NYSE: EVC), a leading global media, marketing and technology company, today announced financial results for the three- and nine-month periods ended September 30, 2021.

Third Quarter 2021 Highlights

• Net revenue up 216% over the prior-year period
• Net income attributable to common stockholders up 35% over the prior-year period
• Consolidated Adjusted EBITDA up 42% over the prior-year period
• Operating cash flow up 50% over the prior-year period
• Free cash flow up 112% over the prior-year period
• Acquisition of Cisneros Interactive's remaining 49% (now wholly-owned)
• Acquisition of MediaDonuts, marking entry into Southeast Asia
• Quarterly cash dividend of $0.025 per share
• Acquisition of 365 Digital, marking entry into Africa

“Entravision reported very strong results for the third quarter, with revenue improving 216% and adjusted EBITDA increasing by 42% over the prior-year period,” said Walter F. Ulloa, Chairman and Chief Executive Officer. “Thanks to the exceptional work of our entire team, we saw growth in core revenue across each of our business segments, with digital, in particular, making a significant contribution to our overall performance and now comprising 73% of total revenue.”

Mr. Ulloa continued, “During the quarter, we continued to strengthen our digital segment, both organically and through acquisitions. At the end of August, we acquired the remaining 49 percent of Cisneros Interactive, which is now wholly-owned by us, expanding our reach in Latin America. Prior to that, in July, we acquired MediaDonuts, marking our entry into Southeast Asia. Finally, just today, we announced the acquisition of 365 Digital, a digital marketing solutions agency in South Africa and marking our entry into Africa. Our digital operations now have a presence on five continents. These acquisitions will serve us favorably as we expand our client base and geographic footprint. We are evolving our business to meet the demands of our clients while generating value for all of our stakeholders as we build a company that is truly a digital media powerhouse."

Acquisition of 365 Digital

The Company announced today in a separate press release that, on November 1, 2021, it acquired 100% of the issued and outstanding shares of stock of 365 Digital Media (Pty) Ltd, a digital marketing solutions agency headquartered in South Africa, marking the Company's entry into Africa, and bringing the Company's digital presence to five continents. The transaction, funded from the Company’s cash on hand, includes a purchase price of approximately $1.9 million in cash, and earn-out payments based upon the achievement of certain EBITDA targets in calendar years 2022, 2023 and 2024, calculated as a pre-determined multiple of EBITDA for each of those years.

Quarterly Cash Dividend

The Company also announced today that its Board of Directors approved a quarterly cash dividend to shareholders of $0.025 per share on the Company's Class A, Class B and Class U common stock, in an aggregate amount of approximately $2.1 million. The quarterly dividend will be payable on December 31, 2021 to shareholders of record as of the close of business on December 16, 2021, and the common stock will trade ex-dividend on December 15, 2021. The Company currently anticipates that future cash dividends will be paid on a quarterly basis; however, any decision to pay future cash dividends will be subject to approval by the Board.

Non-GAAP Financial Measures

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

Unaudited Financial Highlights
	Three-Month Period													Nine-Month Period
	Ended September 30,													Ended September 30,
	2021				2020				% Change					2021				2020				% Change
Net revenue	$	199,008			$	62,978				216	%			$	526,298			$	172,343				205	%
Cost of revenue - digital (1)		124,332				7,808			*						318,118				21,602			*
Operating expenses (2)		43,113				34,061				27	%				124,969				107,368				16	%
Corporate expenses (3)		7,253				6,287				15	%				21,756				18,511				18	%
Foreign currency (gain) loss		177				(680	)		*						454				673				(33	)%
Consolidated adjusted EBITDA (4)		23,195				16,371				42	%				55,177				27,773				99	%
Free cash flow (5)	$	22,382			$	10,567				112	%			$	47,831			$	14,388				232	%
Net income (loss)	$	13,884			$	9,016				54	%			$	31,362			$	(24,238	)		*
Net (income) loss attributable to redeemable noncontrolling interest	$	(1,753	)		$	-			*					$	(5,938	)		$	-			*
Net income (loss) attributable to common stockholders	$	12,131			$	9,016				35	%			$	25,424			$	(24,238	)		*
Net income (loss) per share attributable to common stockholders, basic	$	0.14			$	0.11				27	%			$	0.30			$	(0.29	)		*
Net income (loss) per share attributable to common stockholders, diluted	$	0.14			$	0.11				27	%			$	0.29			$	(0.29	)		*
Weighted average common shares outstanding, basic		85,390,333				84,185,728									85,207,992				84,208,924
Weighted average common shares outstanding, diluted		88,315,732				84,863,020									87,694,395				84,208,924

(1)		Consists primarily of the costs of online media acquired from third-party publishers. Media cost is classified as cost of revenue in the period in which the corresponding revenue is recognized.
(2)		Operating expenses includes direct operating and selling, general and administrative expenses. Included in operating expenses are $0.3 million and $0.1 million of non-cash stock-based compensation for the three-month periods ended September 30, 2021 and 2020, respectively, and $1.0 million and $0.4 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2021 and 2020, respectively.
(3)		Corporate expenses include $0.8 million and $0.7 million of non-cash stock-based compensation for the three-month periods ended September 30, 2021 and 2020, respectively, and $2.3 million and $2.0 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2021 and 2020, respectively.
(4)		Consolidated adjusted EBITDA means net income (loss) plus gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation included in operating and corporate expenses, net interest expense, other operating gain (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from the Federal Communications Commission, or FCC, spectrum incentive auction less related expenses, expenses associated with investments, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings. We use the term consolidated adjusted EBITDA because that measure is defined in the agreement governing our current credit facility (“the 2017 Credit Facility”) and does not include gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation, net interest expense, other income (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from FCC spectrum incentive auction less related expenses, expenses associated with investments, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings.
(5)		Free cash flow is defined as consolidated adjusted EBITDA less cash paid for income taxes, net interest expense, capital expenditures and non-recurring cash expenses plus dividend income, and other operating gain (loss). Net interest expense is defined as interest expense, less non-cash interest expense relating to amortization of debt finance costs, and less interest income.

Unaudited Financial Results
	Three-Month Period
	Ended September 30,
	2021				2020				% Change
Net revenue	$	199,008			$	62,978				216	%
Cost of revenue - digital (1)		124,332				7,808			*
Operating expenses (1)		43,113				34,061				27	%
Corporate expenses (1)		7,253				6,287				15	%
Depreciation and amortization		5,901				3,934				50	%
Impairment charge		166				-			*
Foreign currency (gain) loss		177				(680	)		*
Other operating (gain) loss		(2,431	)			(2,683	)			(9	)%
Operating income (loss)		20,497				14,251				44	%
Interest expense, net		(1,702	)			(1,502	)			13	%
Dividend income		207				3			*
Income (loss) before income taxes		19,002				12,752				49	%
Income tax benefit (expense)		(5,118	)			(3,736	)			37	%
Net income (loss)		13,884				9,016				54	%
Net (income) loss attributable to redeemable noncontrolling interest		(1,753	)			-			*
Net income (loss) attributable to common stockholders	$	12,131			$	9,016				35	%

(1)

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

Net revenue in the third quarter of 2021 totaled $199.0 million, up 216% from $63.0 million in the prior-year period. Of the overall increase, approximately $132.4 million was attributable to our digital segment and was primarily due to advertising revenue resulting from our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which became fully-owned during the third quarter of 2021, and advertising revenue resulting from our acquisition of MediaDonuts during the third quarter of 2021. In addition, of the overall increase, approximately $4.9 million was attributable to our radio segment, primarily due to increases in local and national advertising revenue, partially offset by a decrease in political revenue. The overall increase was partially offset by a decrease of approximately $1.3 million that was attributable to our television segment primarily due to decreases in political revenue and revenue from spectrum usage rights, partially offset by increases in local and national advertising revenue.

Cost of revenue in the third quarter of 2021 totaled $124.3 million compared to $7.8 million in the prior-year period. The increase was primarily due to increased costs of revenue following our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which became wholly-owned during the third quarter of 2021, and our acquisition of MediaDonuts during the third quarter of 2021.

Operating expenses in the third quarter of 2021 totaled $43.1 million, up 27% from $34.1 million in the prior-year period. The increase was primarily due to our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which became fully-owned during the third quarter of 2021, and our acquisition of MediaDonuts during the third quarter of 2021, and due to an increase in expenses associated with the increase in advertising revenue, partially offset by a decrease in salary expense associated with furloughs and layoffs that occurred in 2020 because of the COVID-19 pandemic.

Corporate expenses in the third quarter of 2021 totaled $7.3 million, up 15% from $6.3 million in the prior-year period. The increase was primarily due to an increase in salaries and non-cash stock-based compensation expense.

	Nine-Month Period
	Ended September 30,
	2021				2020				% Change
Net revenue	$	526,298			$	172,343				205	%
Cost of revenue - digital (1)		318,118				21,602			*
Operating expenses (1)		124,969				107,368				16	%
Corporate expenses (1)		21,756				18,511				18	%
Depreciation and amortization		16,159				12,319				31	%
Impairment charge		1,604				39,835				(96	)%
Foreign currency (gain) loss		454				673				(33	)%
Other operating (gain) loss		(4,867	)			(5,549	)			(12	)%
Operating income (loss)		48,105				(22,416	)		*
Interest expense, net		(5,052	)			(5,043	)			0	%
Dividend income		211				26				712	%
Income (loss) before income taxes		43,264				(27,433	)		*
Income tax benefit (expense)		(11,902	)			3,195			*
Net income (loss)		31,362				(24,238	)		*
Net (income) loss attributable to redeemable noncontrolling interest		(5,938	)			-			*
Net income (loss) attributable to common stockholders	$	25,424			$	(24,238	)		*

(1)

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

Net revenue for the nine-month period of 2021 totaled $526.3 million, up 205% from $172.3 million in the prior-year period. Of the overall increase, approximately $339.4 million was attributable to our digital segment and was primarily due to advertising revenue resulting from our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which became fully-owned during the third quarter of 2021, and advertising revenue resulting from our acquisition of MediaDonuts during the third quarter of 2021. In addition, of the overall increase, approximately $2.7 million was attributable to our television segment, primarily due to increases in local and national advertising revenue, and revenue from spectrum usage rights, partially offset by a decrease in political revenue. Additionally, of the overall increase, approximately $11.8 million was attributable to our radio segment primarily due to increases in local and national advertising revenue, partially offset by a decrease in political revenue.

Cost of revenue for the nine-month period of 2021 totaled $318.1 million compared to $21.6 million in the prior-year period. The increase was primarily due to increased costs of revenue following our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which became wholly-owned during the third quarter of 2021, and our acquisition of MediaDonuts during the third quarter of 2021.

Operating expenses for the nine-month period of 2021 totaled $125.0 million, up 16% from $107.4 million in the prior-year period. The increase was primarily due to our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which became fully-owned during the third quarter of 2021, and our acquisition of MediaDonuts during the third quarter of 2021, and due to an increase in expenses associated with the increase in advertising revenue, partially offset by decreases in bad debt and salary expense associated with furloughs and layoffs that occurred in 2020 because of the COVID-19 pandemic.

Corporate expenses for the nine-month period of 2021 totaled $21.8 million, up 18% from $18.5 million in the prior-year period. The increase was primarily due to an increase in salaries and audit fees.

Balance Sheet and Related Metrics

Cash and marketable securities as of September 30, 2021 totaled approximately $182.9 million. Total debt was $213.0 million. Net of $75 million of cash and marketable securities, total leverage as defined in the Company’s credit agreement was 1.6 times as of September 30, 2021. Net of total accessible cash and marketable securities, total leverage was 0.3 times.

Unaudited Segment Results
	Three-Month Period												Nine-Month Period
	Ended September 30,												Ended September 30,
	2021				2020				% Change				2021				2020				% Change
Net Revenue
Digital	$	146,121			$	13,655				970	%		$	377,826			$	38,359				885	%
Television		36,450				37,786				(4	)%			106,598				103,940				3	%
Radio		16,437				11,537				42	%			41,874				30,044				39	%
Total	$	199,008			$	62,978				216	%		$	526,298			$	172,343				205	%
Cost of Revenue - digital (1)
Digital	$	124,332			$	7,808			*				$	318,118			$	21,602			*
Operating Expenses (1)
Digital		13,187				5,383				145	%			36,064				18,403				96	%
Television		20,148				18,978				6	%			59,548				58,471				2	%
Radio		9,778				9,700				1	%			29,357				30,494				(4	)%
Total	$	43,113			$	34,061				27	%		$	124,969			$	107,368				16	%
Corporate Expenses (1)	$	7,253			$	6,287				15	%		$	21,756			$	18,511				18	%
Consolidated adjusted EBITDA (1)	$	23,195			$	16,371				42	%		$	55,177			$	27,773				99	%

(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 third quarter 2021 results on Thursday, November 4, 2021 at 5 p.m. Eastern Time. To access the conference call, please dial (877) 407-9716 (U.S.) or (201) 493-6779 (Int’l) ten minutes prior to the start time and reference Conference ID number 13723009. The call will also be available via live webcast on the investor relations portion of the Company's website located at www.entravision.com.

About Entravision Communications Corporation

Entravision is a diversified global media, marketing and technology company serving clients throughout the United States and in fast growing population centers in more than 30 countries across Latin America, Europe, Asia and Africa. Our dynamic portfolio of services includes digital, television and radio offerings. Digital, our largest revenue segment, is comprised of five core businesses: Entravision Digital, Smadex, Cisneros Interactive, MediaDonuts, and 365 Digital. Entravision Digital provides branding and performance digital solutions to clients and small- and mid-size businesses throughout the world, including the U.S., Latin America and Europe. Smadex provides cutting-edge mobile programmatic solutions and demand-side platforms which enable advertisers to effectively execute performance campaigns using machine-learned bidding algorithms. Cisneros Interactive provides unique digital marketing solutions representing major global publishers and ad-tech platforms in Latin America, while also managing the leading digital audio network and solutions player Audio.Ad. MediaDonuts provides digital marketing performance and branding services in the Southeast Asia region and maintains unique commercial partnerships with some of the world’s leading digital publishers and social media platforms. 365 Digital is a digital advertising solutions provider that offers exclusive sales representations with major global platforms in South Africa. Beyond digital, Entravision has 53 television stations and is the largest affiliate group of the Univision and UniMás television networks. Entravision also manages 46 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 all of our innovative media, marketing and technology offerings at entravision.com or connect with us on LinkedIn and Facebook.

Forward-Looking Statements

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

(Financial Table Follows)

Entravision Communications Corporation Consolidated Balance Sheets (In thousands; unaudited)
		September 30,				December 31,
		2021				2020
ASSETS
Current assets
Cash and cash equivalents		$	182,891			$	119,162
Marketable securities			-				27,988
Restricted cash			749				749
Trade receivables, net of allowance for doubtful accounts			168,165				142,004
Assets held for sale			2,907				2,141
Prepaid expenses and other current assets			24,803				18,021
Total current assets			379,515				310,065
Property and equipment, net			64,600				72,004
Intangible assets subject to amortization, net			65,880				49,412
Intangible assets not subject to amortization			209,153				216,653
Goodwill			68,728				58,043
Operating leases right of use asset			32,053				33,525
Other assets			8,474				7,643
Total assets		$	828,403			$	747,345
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of long-term debt		$	4,694			$	3,000
Accounts payable and accrued expenses			179,912				126,849
Operating lease liabilities			7,353				7,290
Total current liabilities			191,959				137,139
Long-term debt, less current maturities, net of unamortized debt issuance costs			208,014				210,454
Long-term operating lease liabilities			29,851				31,775
Other long-term liabilities			80,893				3,732
Deferred income taxes			64,416				54,980
Total liabilities			575,133				438,080
Redeemable noncontrolling interest			-				33,285
Stockholders' equity
Class A common stock			6				6
Class B common stock			2				2
Class U common stock			1				1
Additional paid-in capital			780,426				828,813
Accumulated deficit			(526,362	)			(551,786	)
Accumulated other comprehensive income (loss)			(803	)			(1,056	)
Total stockholders' equity			253,270				275,980
Total liabilities and stockholders' equity		$	828,403			$	747,345

Entravision Communications Corporation Consolidated Statements of Operations (In thousands, except share and per share data) (Unaudited)
		Three-Month Period								Nine-Month Period
		Ended September 30,								Ended September 30,
		2021				2020				2021				2020
Net revenue		$	199,008			$	62,978			$	526,298			$	172,343
Expenses:
Cost of revenue - digital			124,332				7,808				318,118				21,602
Direct operating expenses			28,583				24,178				83,480				72,997
Selling, general and administrative expenses			14,530				9,883				41,489				34,371
Corporate expenses			7,253				6,287				21,756				18,511
Depreciation and amortization			5,901				3,934				16,159				12,319
Impairment charge			166				-				1,604				39,835
Foreign currency (gain) loss			177				(680	)			454				673
Other operating (gain) loss			(2,431	)			(2,683	)			(4,867	)			(5,549	)
			178,511				48,727				478,193				194,759
Operating income (loss)			20,497				14,251				48,105				(22,416	)
Interest expense			(1,714	)			(1,969	)			(5,287	)			(6,673	)
Interest income			12				467				235				1,630
Dividend income			207				3				211				26
Income (loss) before income taxes			19,002				12,752				43,264				(27,433	)
Income tax benefit (expense)			(5,118	)			(3,736	)			(11,902	)			3,195
Net income (loss)			13,884				9,016				31,362				(24,238	)
Net (income) loss attributable to redeemable noncontrolling interest			(1,753	)			-				(5,938	)			-
Net income (loss) attributable to common stockholders		$	12,131			$	9,016			$	25,424			$	(24,238	)
Basic and diluted earnings per share:
Net income (loss) per share attributable to common stockholders, basic		$	0.14			$	0.11			$	0.30			$	(0.29	)
Net income (loss) per share attributable to common stockholders, diluted		$	0.14			$	0.11			$	0.29			$	(0.29	)
Cash dividends declared per common share, basic and diluted		$	0.03			$	0.03			$	0.08			$	0.10
Weighted average common shares outstanding, basic			85,390,333				84,185,728				85,207,992				84,208,924
Weighted average common shares outstanding, diluted			88,315,732				84,863,020				87,694,395				84,208,924

Entravision Communications Corporation Consolidated Statements of Cash Flows (In thousands; unaudited)
		Three-Month Period								Nine-Month Period
		Ended September 30,								Ended September 30,
		2021				2020				2021				2020
Cash flows from operating activities:
Net income (loss)		$	13,884			$	9,016			$	31,362			$	(24,238	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization			5,901				3,934				16,159				12,319
Impairment charge			166				—				1,604				39,835
Deferred income taxes			4,649				(1,346	)			8,348				(8,744	)
Non-cash interest			153				159				451				491
Amortization of syndication contracts			119				125				357				383
Payments on syndication contracts			(115	)			(72	)			(354	)			(325	)
Non-cash stock-based compensation			1,094				816				3,300				2,408
(Gain) loss on disposal of property and equipment			(2,622	)			(140	)			(2,622	)			(767	)
Changes in assets and liabilities:
(Increase) decrease in accounts receivable			(16,361	)			(5,228	)			(15,894	)			14,285
(Increase) decrease in prepaid expenses and other assets			(642	)			1,623				2,267				6,713
Increase (decrease) in accounts payable, accrued expenses and other liabilities			3,169				(2,633	)			8,802				(16,643	)
Net cash provided by operating activities			9,395				6,254				53,780				25,717
Cash flows from investing activities:
Proceeds from sale of property and equipment and intangibles			9,431				1,100				9,431				5,089
Purchases of property and equipment			(1,433	)			(2,065	)			(4,269	)			(7,741	)
Purchases of intangible assets			—				—				—				(158	)
Purchase of a businesses, net of cash acquired			(12,847	)			—				(12,847	)			—
Proceeds from marketable securities			10,000				11,620				27,800				38,480
Purchases of investments			(800	)			—				(800	)			—
Net cash provided by investing activities			4,351				10,655				19,315				35,670
Cash flows from financing activities:
Proceeds from stock option exercises			242				—				414				—
Tax payments related to shares withheld for share-based compensation plans			(70	)			—				(528	)			(15	)
Payments on long-term debt			(750	)			(750	)			(2,250	)			(2,250	)
Dividends paid			(2,136	)			(2,106	)			(6,395	)			(8,428	)
Repurchase of Class A common stock			—				—				—				(525	)
Payments of capitalized debt costs			—				—				(604	)			—
Net cash used in financing activities			(2,714	)			(2,856	)			(9,363	)			(11,218	)
Effect of exchange rates on cash, cash equivalents and restricted cash			(3	)			(39	)			(3	)			(7	)
Net increase (decrease) in cash, cash equivalents and restricted cash			11,029				14,014				63,729				50,162
Cash, cash equivalents and restricted cash:
Beginning			172,611				70,005				119,911				33,857
Ending		$	183,640			$	84,019			$	183,640			$	84,019

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								Nine-Month Period
		Ended September 30,								Ended September 30,
		2021				2020				2021				2020
Consolidated adjusted EBITDA (1)		$	23,195			$	16,371			$	55,177			$	27,773
EBITDA attributable to redeemable noncontrolling interest			2,036				-				9,127				-
Interest expense			(1,714	)			(1,969	)			(5,287	)			(6,673	)
Interest income			12				467				235				1,630
Dividend income			207				3				211				26
Income tax expense			(5,118	)			(3,736	)			(11,902	)			3,195
Amortization of syndication contracts			(119	)			(125	)			(357	)			(383	)
Payments on syndication contracts			115				72				354				325
Non-cash stock-based compensation included in direct operating expenses			(321	)			(148	)			(971	)			(383	)
Non-cash stock-based compensation included in corporate expenses			(773	)			(668	)			(2,329	)			(2,025	)
Depreciation and amortization			(5,901	)			(3,934	)			(16,159	)			(12,319	)
Impairment charge			(166	)			-				(1,604	)			(39,835	)
Non-recurring cash severance charge			-				-				-				(1,118	)
Other operating gain (loss)			2,431				2,683				4,867				5,549
Net (income) loss attributable to redeemable noncontrolling interest			(1,753	)			-				(5,938	)			-
Net income (loss) attributable to common stockholders			12,131				9,016				25,424				(24,238	)
Depreciation and amortization			5,901				3,934				16,159				12,319
Impairment charge			166				-				1,604				39,835
Deferred income taxes			4,649				(1,346	)			8,348				(8,744	)
Non-cash interest			153				159				451				491
Amortization of syndication contracts			119				125				357				383
Payments on syndication contracts			(115	)			(72	)			(354	)			(325	)
Non-cash stock-based compensation			1,094				816				3,300				2,408
(Gain) loss on disposal of property and equipment			(2,622	)			(140	)			(2,622	)			(767	)
Net income (loss) attributable to redeemable noncontrolling interest			1,753				-				5,938				-
Changes in assets and liabilities:
(Increase) decrease in accounts receivable			(16,361	)			(5,228	)			(15,894	)			14,285
(Increase) decrease in prepaid expenses and other assets			(642	)			1,623				2,267				6,713
Increase (decrease) in accounts payable, accrued expenses and other liabilities			3,169				(2,633	)			8,802				(16,643	)
Cash flows from operating activities			9,395				6,254				53,780				25,717

(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								Nine-Month Period
		Ended September 30,								Ended September 30,
		2021				2020				2021				2020
Consolidated adjusted EBITDA (1)		$	23,195			$	16,371			$	55,177			$	27,773
Net interest expense (1)			(1,549	)			(1,343	)			(4,601	)			(4,552	)
Dividend income			207				3				211				26
Cash paid for income taxes			(469	)			(5,082	)			(3,554	)			(5,549	)
Capital expenditures (2)			(1,433	)			(2,065	)			(4,269	)			(7,741	)
Non-recurring cash severance charge			-				-				-				(1,118	)
Other operating gain (loss)			2,431				2,683				4,867				5,549
Free cash flow (1)			22,382				10,567				47,831				14,388
Capital expenditures (2)			1,433				2,065				4,269				7,741
EBITDA attributable to redeemable noncontrolling interest			2,036				-				9,127				-
(Gain) loss on disposal of property and equipment			(2,622	)			(140	)			(2,622	)			(767	)
Changes in assets and liabilities:
(Increase) decrease in accounts receivable			(16,361	)			(5,228	)			(15,894	)			14,285
(Increase) decrease in prepaid expenses and other assets			(642	)			1,623				2,267				6,713
Increase (decrease) in accounts payable, accrued expenses and other liabilities			3,169				(2,633	)			8,802				(16,643	)
Cash Flows From Operating Activities		$	9,395			$	6,254			$	53,780			$	25,717

(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/20211104006282/en/

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 are Entravision's Q3 2021 financial highlights?

Entravision reported a 216% increase in net revenue to $199 million and a 35% rise in net income to $12.1 million.

What acquisitions did Entravision complete in 2021?

Entravision acquired the remaining 49% of Cisneros Interactive, MediaDonuts in Southeast Asia, and 365 Digital in Africa.

What is the quarterly dividend announced by Entravision?

Entravision announced a quarterly cash dividend of $0.025 per share, payable on December 31, 2021.

How much did Entravision's free cash flow increase in Q3 2021?

Entravision's free cash flow increased by 112% to $22.4 million.

What is the total debt of Entravision as of September 30, 2021?

Entravision reported total debt of $213 million as of September 30, 2021.