Entravision Communications Corporation Reports Third Quarter 2023 Results

Rhea-AI Summary

Entravision Communications Corporation (NYSE: EVC) announced financial results for Q3 2023. The company achieved a record quarterly advertising revenue of $274.4 million, up 14% YoY. Net revenue increased by 14% to $274.4 million. Net income attributable to common stockholders decreased by 71% compared to the prior-year quarter. Consolidated EBITDA decreased by 45% compared to the prior-year quarter. Operating cash flow increased by 45% over the prior-year quarter. Free cash flow decreased by 74% compared to the prior-year quarter. The company also announced a quarterly cash dividend of $0.05 per share.

Positive

• Record quarterly advertising revenue of $274.4 million, up 14% YoY
• Net revenue increased by 14% to $274.4 million
• Operating cash flow increased by 45% over the prior-year quarter

Negative

• Net income attributable to common stockholders decreased by 71% compared to the prior-year quarter
• Consolidated EBITDA decreased by 45% compared to the prior-year quarter
• Free cash flow decreased by 74% compared to the prior-year quarter

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 nine-month periods ended September 30, 2023.

Third Quarter 2023 Highlights

• Record quarterly advertising revenue
• Net revenue up 14% over the prior-year quarter
• Net income attributable to common stockholders down 71% compared to the prior-year quarter
• Consolidated EBITDA down 45% compared to the prior-year quarter
• Operating cash flow up 45% over the prior-year quarter
• Free cash flow down 74% compared to the prior-year quarter
• Quarterly cash dividend of $0.05 per share

“We achieved a record quarterly advertising revenue of $274.4 million, up 14% year-over-year, led by strength in our Digital segment, which now comprises 84% of total revenue,” said Chris Young, Chief Financial Officer. “We continued to execute on our Digital transformation strategy during the quarter with the signing of two new partnerships with Match and Pinterest to further diversify our portfolio of digital solutions. While non-returning political revenue and sales mix contributed to the year-over-year decline in our Consolidated EBITDA, we anticipate increased political spending ahead of the 2024 elections will benefit our Television and Audio segments and Consolidated EBITDA in the quarters to come."

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 December 29, 2023 to shareholders of record as of the close of business on December 15, 2023, and the common stock will trade ex-dividend on December 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												Nine-Month Period
	Ended September 30,												Ended September 30,
	2023				2022				% Change				2023				2022				% Change
Net revenue	$	274,417			$	241,014				14	%		$	786,804			$	659,881				19	%
Cost of revenue - digital (1)		199,289				157,095				27	%			562,881				431,951				30	%
Operating expenses (2)		53,809				49,294				9	%			163,069				140,527				16	%
Corporate expenses (3)		13,292				9,525				40	%			35,836				26,769				34	%
Foreign currency (gain) loss		548				1,966				(72	)%			289				2,112				(86	)%
Consolidated EBITDA (4)		14,185				25,972				(45	)%			41,420				66,566				(38	)%
Free cash flow (5)	$	4,004			$	15,443				(74	)%		$	9,470			$	44,026				(78	)%
Net income (loss)	$	2,732			$	9,090				(70	)%		$	2,430			$	19,444				(88	)%
Net (income) loss attributable to redeemable noncontrolling interest	$	(13	)		$	-			*				$	(1	)		$	-			*
Net (income) loss attributable to noncontrolling interest	$	-			$	303				(100	)%		$	342			$	303				13	%
Net income (loss) attributable to common stockholders	$	2,719			$	9,393				(71	)%		$	2,771			$	19,747				(86	)%
Net income (loss) per share attributable to common stockholders, basic and diluted	$	0.03			$	0.11				(73	)%		$	0.03			$	0.23				(87	)%
Weighted average common shares outstanding, basic		87,995,567				84,945,873								87,803,770				85,469,675
Weighted average common shares outstanding, diluted		89,888,721				87,417,501								89,835,363				87,671,726

(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 $2.6 million and $1.0 million of non-cash stock-based compensation for the three-month periods ended September 30, 2023 and 2022, respectively, and $7.2 million and $2.9 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2023 and 2022, respectively.
(3)		Corporate expenses include $4.4 million and $1.8 million of non-cash stock-based compensation for the three-month periods ended September 30, 2023 and 2022, respectively, and $9.8 million and $5.1 million of non-cash stock-based compensation for the nine-month periods ended September 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 September 30,
	2023				2022				% Change
Net revenue	$	274,417			$	241,014				14	%
Cost of revenue - digital (1)		199,289				157,095				27	%
Operating expenses (1)		53,809				49,294				9	%
Corporate expenses (1)		13,292				9,525				40	%
Depreciation and amortization		7,356				6,554				12	%
Change in fair value of contingent consideration		(5,997	)			734			*
Impairment charge		989				—			*
Foreign currency (gain) loss		548				1,966				(72	)%
Other operating (gain) loss		—				(58	)			(100	)%
Operating income (loss)		5,131				15,904				(68	)%
Interest expense, net		(2,896	)			(2,267	)			28	%
Dividend income		—				6				(100	)%
Realized gain (loss) on marketable securities		(33	)			(473	)			(93	)%
Income (loss) before income taxes		2,202				13,170				(83	)%
Income tax benefit (expense)		530				(4,080	)		*
Net income (loss)		2,732				9,090				(70	)%
Net (income) loss attributable to redeemable noncontrolling interest		(13	)			—			*
Net (income) loss attributable to noncontrolling interest		—				303				(100	)%
Net income (loss) attributable to common stockholders	$	2,719			$	9,393				(71	)%

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

Net revenue in the third quarter of 2023 totaled $274.4 million, up 14% from $241.0 million in the prior-year period. Of the overall increase, $42.6 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 fully contribute to our financial results in our digital segment in the comparable period. The overall increase was partially offset by a decrease of $6.1 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 and spectrum usage rights revenue. In addition, the overall increase was partially offset by a decrease of $3.1 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 third quarter of 2023 totaled $199.3 million, up 27% from $157.1 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 fully contribute to our financial results in our digital segment in the comparable period.

Operating expenses in the third quarter of 2023 totaled $53.8 million, up 9% from $49.3 million in the prior-year period. Of the overall increase, $4.1 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 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 fully contribute to our financial results in our digital segment in the comparable period. In addition, of the overall increase in operating expenses, $0.5 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. The overall increase was partially offset by a decrease of $0.1 million attributable to our television segment.

Corporate expenses in the third quarter of 2023 totaled $13.3 million, up 40% from $9.5 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 RSU grant to our new CEO, and increases in professional service fees.

	Nine-Month Period
	Ended September 30,
	2023				2022				% Change
Net revenue	$	786,804			$	659,881				19	%
Cost of revenue - digital (1)		562,881				431,951				30	%
Operating expenses (1)		163,069				140,527				16	%
Corporate expenses (1)		35,836				26,769				34	%
Depreciation and amortization		20,336				19,212				6	%
Change in fair value of contingent consideration		(8,939	)			6,810			*
Impairment charge		989				—			*
Foreign currency (gain) loss		289				2,112				(86	)%
Other operating (gain) loss		—				(1,011	)			(100	)%
Operating income (loss)		12,343				33,511				(63	)%
Interest expense, net		(9,333	)			(5,309	)			76	%
Dividend income		32				20				60	%
Realized gain (loss) on marketable securities		(94	)			(473	)			(80	)%
Gain (loss) on debt extinguishment		(1,556	)			—			*
Income (loss) before income taxes		1,392				27,749				(95	)%
Income tax benefit (expense)		1,038				(8,305	)		*
Net income (loss)		2,430				19,444				(88	)%
Net (income) loss attributable to redeemable noncontrolling interest		(1	)			—			*
Net (income) loss attributable to noncontrolling interest		342				303				13	%
Net income (loss) attributable to common stockholders	$	2,771			$	19,747				(86	)%

Net revenue for the nine-month period of 2023 totaled $786.8 million, up 19% from $659.9 million in the prior-year period. Of the overall increase, $140.9 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 fully contribute to our financial results in our digital segment in the comparable period. The overall increase was partially offset by a decrease of $9.1 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 $4.9 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 nine-month period of 2023 totaled $562.9 million, up 30% from $432.0 million in the prior-year period. The increase was 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 fully contribute to our financial results in our digital segment in the comparable period.

Operating expenses for the nine-month period of 2023 totaled $163.1 million, up 16% from $140.5 million in the prior-year period. Of the overall increase, $18.2 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 fully contribute to our financial results in our digital segment in the comparable period. Additionally, of the overall increase in operating expenses, $0.9 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, $3.5 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 nine-month period of 2023 totaled $35.8 million, up 34% from $26.8 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 RSU grant to our new CEO, and increases in professional service fees, audit fees and rent expense.

Balance Sheet and Related Metrics

Cash and marketable securities as of September 30, 2023 totaled $128.7 million. Total debt as defined in the Company’s credit agreement was $211.1 million. Net of $50 million of cash and marketable securities, total leverage as defined in the Company’s credit agreement was 2.1 times as of September 30, 2023. Net of total cash and marketable securities, total leverage was 1.1 times.

Unaudited Segment Results (In thousands)
	Three-Month Period												Nine-Month Period
	Ended September 30,												Ended September 30,
	2023				2022				% Change				2023				2022				% Change
Net Revenue
Digital	$	231,487			$	188,877				23	%		$	657,865			$	516,966				27	%
Television		29,552				35,678				(17	)%			89,807				98,918				(9	)%
Audio		13,378				16,459				(19	)%			39,132				43,997				(11	)%
Total	$	274,417			$	241,014				14	%		$	786,804			$	659,881				19	%
Cost of Revenue - digital (1)
Digital	$	199,289			$	157,095				27	%		$	562,881			$	431,951				30	%
Operating Expenses (1)
Digital		23,173				19,080				21	%			69,755				51,577				35	%
Television		19,892				20,003				(1	)%			59,859				58,969				2	%
Audio		10,744				10,211				5	%			33,455				29,981				12	%
Total	$	53,809			$	49,294				9	%		$	163,069			$	140,527				16	%
Corporate Expenses (1)	$	13,292			$	9,525				40	%		$	35,836			$	26,769				34	%
Consolidated EBITDA (1)	$	14,185			$	25,972				(45	)%		$	41,420			$	66,566				(38	)%

(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 third quarter 2023 results on Thursday, November 2, 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 10182461. 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.

(Financial Table Follows)

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,
		2023				2022				2023				2022
Net revenue		$	274,417			$	241,014			$	786,804			$	659,881
Expenses:
Cost of revenue - digital			199,289				157,095				562,881				431,951
Direct operating expenses			31,855				30,086				94,782				87,505
Selling, general and administrative expenses			21,954				19,208				68,287				53,022
Corporate expenses			13,292				9,525				35,836				26,769
Depreciation and amortization			7,356				6,554				20,336				19,212
Change in fair value of contingent consideration			(5,997	)			734				(8,939	)			6,810
Impairment charge			989				—				989				—
Foreign currency (gain) loss			548				1,966				289				2,112
Other operating (gain) loss			—				(58	)			—				(1,011	)
			269,286				225,110				774,461				626,370
Operating income (loss)			5,131				15,904				12,343				33,511
Interest expense			(4,454	)			(3,055	)			(12,788	)			(7,225	)
Interest income			1,558				788				3,455				1,916
Dividend income			—				6				32				20
Realized gain (loss) on marketable securities			(33	)			(473	)			(94	)			(473	)
Gain (loss) on debt extinguishment			—				—				(1,556	)			—
Income (loss) before income taxes			2,202				13,170				1,392				27,749
Income tax benefit (expense)			530				(4,080	)			1,038				(8,305	)
Net income (loss)			2,732				9,090				2,430				19,444
Net (income) loss attributable to redeemable noncontrolling interest			(13	)			—				(1	)			—
Net (income) loss attributable to noncontrolling interest			—				303				342				303
Net income (loss) attributable to common stockholders		$	2,719			$	9,393			$	2,771			$	19,747
Basic and diluted earnings per share:
Net income (loss) per share attributable to common stockholders, basic and diluted		$	0.03			$	0.11			$	0.03			$	0.23
Cash dividends declared per common share, basic and diluted		$	0.05			$	0.03			$	0.15			$	0.08
Weighted average common shares outstanding, basic			87,995,567				84,945,873				87,803,770				85,469,675
Weighted average common shares outstanding, diluted			89,888,721				87,417,501				89,835,363				87,671,726

Entravision Communications Corporation
Consolidated Balance Sheets
(In thousands; unaudited)
		September 30,				December 31,
		2023				2022
ASSETS
Current assets
Cash and cash equivalents		$	110,624			$	110,691
Marketable securities			18,063				44,528
Restricted cash			765				753
Trade receivables, net of allowance for doubtful accounts			211,175				224,713
Assets held for sale			1,223				—
Prepaid expenses and other current assets			43,404				27,238
Total current assets			385,254				407,923
Property and equipment, net			67,750				61,362
Intangible assets subject to amortization, net			55,706				61,811
Intangible assets not subject to amortization			207,453				207,453
Goodwill			90,672				86,991
Deferred income taxes			2,591				2,591
Operating leases right of use asset			45,159				44,413
Other assets			21,550				8,297
Total assets		$	876,135			$	880,841
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of long-term debt		$	8,643			$	5,256
Accounts payable and accrued expenses			240,417				237,415
Operating lease liabilities			7,150				5,570
Total current liabilities			256,210				248,241
Long-term debt, less current maturities, net of unamortized debt issuance costs			201,301				207,292
Long-term operating lease liabilities			46,849				42,151
Other long-term liabilities			17,294				30,198
Deferred income taxes			68,464				67,590
Total liabilities			590,118				595,472
Redeemable noncontrolling interest			47,301				—
Stockholders' equity
Class A common stock			8				8
Class U common stock			1				1
Additional paid-in capital			742,040				776,298
Accumulated deficit			(501,604	)			(504,375	)
Accumulated other comprehensive income (loss)			(1,729	)			(1,510	)
Total stockholders' equity			238,716				270,422
Noncontrolling interest			-				14,947
Total equity			238,716				285,369
Total liabilities and equity		$	876,135			$	880,841

Entravision Communications Corporation
Consolidated Statements of Cash Flows
(In thousands; unaudited)
		Three-Month Period								Nine-Month Period
		Ended September 30,								Ended September 30,
		2023				2022				2023				2022
Cash flows from operating activities:
Net income (loss)		$	2,732			$	9,090			$	2,430			$	19,444
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization			7,356				6,554				20,336				19,212
Impairment charge			989				—				989				—
Deferred income taxes			(40	)			62				(169	)			(3,151	)
Non-cash interest			85				365				264				1,076
Amortization of syndication contracts			118				117				358				348
Payments on syndication contracts			(125	)			(70	)			(366	)			(304	)
Non-cash stock-based compensation			7,032				2,786				17,053				7,995
(Gain) loss on marketable securities			33				473				94				473
(Gain) loss on disposal of property and equipment			(29	)			39				(11	)			(599	)
(Gain) loss on debt extinguishment			—				—				1,556				—
Change in fair value of contingent consideration			(5,997	)			734				(8,939	)			6,810
Changes in assets and liabilities:
(Increase) decrease in accounts receivable			(1,219	)			4,708				16,261				22,296
(Increase) decrease in prepaid expenses and other current assets, operating leases right of use asset and other assets			(3,902	)			1,069				(7,199	)			(183	)
Increase (decrease) in accounts payable, accrued expenses and other liabilities			14,993				(10,691	)			26,460				4,725
Net cash provided by operating activities			22,026				15,236				69,117				78,142
Cash flows from investing activities:
Proceeds from sale of property and equipment and intangibles			33				—				83				2,671
Purchases of property and equipment			(5,023	)			(4,673	)			(19,881	)			(7,882	)
Purchase of a business, net of cash acquired			—				—				(6,930	)			—
Investment in variable interest entities, net of cash consolidated			—				(5,164	)			—				(5,164	)
Purchases of marketable securities			(1,183	)			(5,241	)			(11,355	)			(92,480	)
Proceeds from sale of marketable securities			10,000				36,369				38,093				46,868
Purchases of investments			(100	)			—				(300	)			—
Issuance of loan receivable			(5,550	)			—				(13,636	)			—
Net cash provided by (used in) investing activities			(1,823	)			21,291				(13,926	)			(55,987	)
Cash flows from financing activities:
Proceeds from stock option exercises			—				—				554				218
Tax payments related to shares withheld for share-based compensation plans			(63	)			—				(158	)			(267	)
Payments on debt			(1,250	)			(1,001	)			(214,495	)			(2,501	)
Dividends paid			(4,400	)			(2,124	)			(13,182	)			(6,415	)
Distributions to noncontrolling interest			—				—				(3,380	)			—
Repurchase of Class A common stock			—				—				—				(11,280	)
Payment of contingent consideration			(3,403	)			(21,734	)			(35,113	)			(65,340	)
Principal payments under finance lease obligation			(37	)			(33	)			(113	)			(72	)
Proceeds from borrowings on debt			1				—				212,420				—
Payments for debt issuance costs			—				—				(1,777	)			—
Net cash used in financing activities			(9,152	)			(24,892	)			(55,244	)			(85,657	)
Effect of exchange rates on cash, cash equivalents and restricted cash			(3	)			5				(2	)			(1	)
Net increase (decrease) in cash, cash equivalents and restricted cash			11,048				11,640				(55	)			(63,503	)
Cash, cash equivalents and restricted cash:
Beginning			100,341				110,700				111,444				185,843
Ending		$	111,389			$	122,340			$	111,389			$	122,340

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								Nine-Month Period
		Ended September 30,								Ended September 30,
		2023				2022				2023				2022
Consolidated EBITDA (1)		$	14,185			$	25,972			$	41,420			$	66,566
EBITDA attributable to redeemable noncontrolling interest			319				—				736				—
EBITDA attributable to noncontrolling interest			—				(5	)			230				(5	)
Interest expense			(4,454	)			(3,055	)			(12,788	)			(7,225	)
Interest income			1,558				788				3,455				1,916
Dividend income			-				6				32				20
Realized gain (loss) on marketable securities			(33	)			(473	)			(94	)			(473	)
Income tax expense			530				(4,080	)			1,038				(8,305	)
Amortization of syndication contracts			(118	)			(117	)			(358	)			(348	)
Payments on syndication contracts			125				70				366				304
Non-cash stock-based compensation included in direct operating expenses			(2,637	)			(981	)			(7,218	)			(2,878	)
Non-cash stock-based compensation included in corporate expenses			(4,395	)			(1,805	)			(9,835	)			(5,117	)
Depreciation and amortization			(7,356	)			(6,554	)			(20,336	)			(19,212	)
Change in fair value of contingent consideration			5,997				(734	)			8,939				(6,810	)
Impairment charge			(989	)			—				(989	)			—
Non-recurring cash severance charge			—				—				(612	)			—
Other operating gain (loss)			—				58				—				1,011
Gain (loss) on debt extinguishment			—				—				(1,556	)			—
Net (income) loss attributable to redeemable noncontrolling interest			(13	)			—				(1	)			—
Net (income) loss attributable to noncontrolling interest			—				303				342				303
Net income (loss) attributable to common stockholders			2,719				9,393				2,771				19,747
Depreciation and amortization			7,356				6,554				20,336				19,212
Impairment charge			989				—				989				—
Deferred income taxes			(40	)			62				(169	)			(3,151	)
Non-cash interest			85				365				264				1,076
Amortization of syndication contracts			118				117				358				348
Payments on syndication contracts			(125	)			(70	)			(366	)			(304	)
Non-cash stock-based compensation			7,032				2,786				17,053				7,995
Realized (gain) loss on marketable securities			33				473				94				473
(Gain) loss on debt extinguishment			—				—				1,556				—
(Gain) loss on disposal of property and equipment			(29	)			39				(11	)			(599	)
Change in fair value of contingent consideration			(5,997	)			734				(8,939	)			6,810
Net income (loss) attributable to redeemable noncontrolling interest			13				—				1				—
Net income (loss) attributable to noncontrolling interest			—				(303	)			(342	)			(303	)
Changes in assets and liabilities:
(Increase) decrease in accounts receivable			(1,219	)			4,708				16,261				22,296
(Increase) decrease in prepaid expenses and other current assets, operating leases right of use asset and other assets			(3,902	)			1,069				(7,199	)			(183	)
Increase (decrease) in accounts payable, accrued expenses and other liabilities			14,993				(10,691	)			26,460				4,725
Cash flows from operating activities			22,026				15,236				69,117				78,142

(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								Nine-Month Period
		Ended September 30,								Ended September 30,
		2023				2022				2023				2022
Consolidated EBITDA (1)		$	14,185			$	25,972			$	41,420			$	66,566
Net interest expense (1)			(2,811	)			(1,902	)			(9,069	)			(4,233	)
Dividend income			—				6				32				20
Cash paid for income taxes			(2,347	)			(4,018	)			(5,929	)			(11,456	)
Capital expenditures (2)			(5,023	)			(4,673	)			(19,881	)			(7,882	)
Landlord incentive reimbursement			—				—				3,509				—
Non-recurring cash severance charge			—				—				(612	)			—
Other operating gain (loss)			—				58				—				1,011
Free cash flow (1)			4,004				15,443				9,470				44,026
Capital expenditures (2)			5,023				4,673				19,881				7,882
Landlord incentive reimbursement			—				—				(3,509	)			—
EBITDA attributable to redeemable noncontrolling interest			319				—				736				—
EBITDA attributable to noncontrolling interest			—				(5	)			230				(5	)
(Gain) loss on disposal of property and equipment			(29	)			39				(11	)			(599	)
Cash paid for income taxes			2,347				4,018				5,929				11,456
Deferred income taxes			(40	)			62				(169	)			(3,151	)
Income tax (expense) benefit			530				(4,080	)			1,038				(8,305	)
Changes in assets and liabilities:
(Increase) decrease in accounts receivable			(1,219	)			4,708				16,261				22,296
(Increase) decrease in prepaid expenses and other current assets, operating leases right of use asset and other assets			(3,902	)			1,069				(7,199	)			(183	)
Increase (decrease) in accounts payable, accrued expenses and other liabilities			14,993				(10,691	)			26,460				4,725
Cash Flows From Operating Activities		$	22,026			$	15,236			$	69,117			$	78,142

(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/20231102019508/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

FAQ

What is the stock symbol for Entravision Communications Corporation?

The stock symbol for Entravision Communications Corporation is EVC.

What was the quarterly advertising revenue for Q3 2023?

The quarterly advertising revenue for Q3 2023 was $274.4 million.

What was the net income attributable to common stockholders for Q3 2023?

The net income attributable to common stockholders for Q3 2023 decreased by 71% compared to the prior-year quarter.

What was the consolidated EBITDA for Q3 2023?

The consolidated EBITDA for Q3 2023 decreased by 45% compared to the prior-year quarter.

What was the operating cash flow for Q3 2023?

The operating cash flow for Q3 2023 increased by 45% over the prior-year quarter.

What was the free cash flow for Q3 2023?

The free cash flow for Q3 2023 decreased by 74% compared to the prior-year quarter.