Entravision Communications Corporation Reports Third Quarter 2024 Results
Entravision Communications (NYSE: EVC) reported its financial results for Q3 2024, showing a 25% increase in net revenue to $97.2 million compared to Q3 2023, driven by political advertising and Smadex. The company realigned its operations into two segments: Media and Advertising Technology & Services. Despite the revenue growth, Entravision reported a net loss from continuing operations of $10.8 million, a 78% increase from the previous year's $6.1 million loss. Operating expenses rose by 30% to $52.7 million due to higher salaries and cloud infrastructure costs. The company declared a quarterly cash dividend of $0.05 per share, payable on December 31, 2024. Free cash flow decreased by 45% to $9.3 million in Q3 2024. The balance sheet shows cash and marketable securities of $93.1 million and total debt of $187.8 million. Consolidated EBITDA for Q3 2024 was $15.1 million.
Entravision Communications (NYSE: EVC) ha riportato i risultati finanziari per il terzo trimestre del 2024, mostrando un aumento del 25% nei ricavi netti a $97,2 milioni rispetto al terzo trimestre del 2023, grazie alla pubblicità politica e a Smadex. L'azienda ha riallineato le proprie operazioni in due segmenti: Media e Tecnologia & Servizi pubblicitari. Nonostante la crescita dei ricavi, Entravision ha riportato una di $10,8 milioni, un aumento del 78% rispetto alla perdita di $6,1 milioni dell'anno precedente. Le spese operative sono aumentate del 30% a $52,7 milioni a causa di salari più alti e costi per l'infrastruttura cloud. L'azienda ha dichiarato un dividendo in contante trimestrale di $0,05 per azione, pagabile il 31 dicembre 2024. Il flusso di cassa libero è diminuito del 45% a $9,3 milioni nel terzo trimestre del 2024. Il bilancio mostra disponibilità liquide e titoli di credito per $93,1 milioni e un debito totale di $187,8 milioni. L'EBITDA consolidato per il terzo trimestre del 2024 è stato di $15,1 milioni.
Entravision Communications (NYSE: EVC) reportó sus resultados financieros para el tercer trimestre de 2024, mostrando un aumento del 25% en los ingresos netos a $97.2 millones en comparación con el tercer trimestre de 2023, impulsado por la publicidad política y Smadex. La compañía reestructuró sus operaciones en dos segmentos: Medios y Tecnología & Servicios Publicitarios. A pesar del crecimiento de los ingresos, Entravision reportó una de $10.8 millones, un aumento del 78% respecto a la pérdida de $6.1 millones del año anterior. Los gastos operativos aumentaron un 30% a $52.7 millones debido a mayores salarios y costos de infraestructura en la nube. La compañía declaró un dividendo en efectivo trimestral de $0.05 por acción, pagadero el 31 de diciembre de 2024. El flujo de caja libre disminuyó un 45% a $9.3 millones en el tercer trimestre de 2024. El balance muestra efectivo y valores negociables de $93.1 millones y una deuda total de $187.8 millones. El EBITDA consolidado para el tercer trimestre de 2024 fue de $15.1 millones.
Entravision Communications (NYSE: EVC)는 2024년 3분기 재무 결과를 보고하며 순수익이 25% 증가하여 9,720만 달러에 달했다고 밝혔습니다. 이는 정치 광고와 Smadex에 의해 촉진된 것입니다. 이 회사는 운영을 미디어 및 광고 기술 및 서비스의 두 가지 부문으로 재편했습니다. 수익 증가에도 불구하고, Entravision은 지속 운영에서 순손실이 1,080만 달러로, 이전 년도의 610만 달러 손실에 비해 78% 증가했다고 보고했습니다. 운영 비용은 급여 인상과 클라우드 인프라 비용 상승으로 인해 30% 증가하여 5,270만 달러에 달했습니다. 이 회사는 주당 0.05달러의 분기 현금 배당금을 선언했으며, 이는 2024년 12월 31일에 지급될 예정입니다. 자유 현금 흐름은 2024년 3분기에 45% 감소하여 930만 달러에 이릅니다. 담보편성의 현금 및 유가증권 잔액은 9,310만 달러이며 총 부채는 1억 8,780만 달러입니다. 2024년 3분기의 통합 EBITDA는 1,510만 달러였습니다.
Entravision Communications (NYSE: EVC) a annoncé ses résultats financiers pour le troisième trimestre 2024, affichant une augmentation de 25% des revenus nets à 97,2 millions de dollars par rapport au troisième trimestre 2023, soutenue par la publicité politique et Smadex. L'entreprise a réorganisé ses opérations en deux segments : Médias et Technologie Publicitaire & Services. Malgré la croissance des revenus, Entravision a signalé une perte nette des opérations continues de 10,8 millions de dollars, soit une augmentation de 78% par rapport à la perte de 6,1 millions de dollars de l'année précédente. Les dépenses d'exploitation ont augmenté de 30% pour atteindre 52,7 millions de dollars en raison de la hausse des salaires et des coûts d'infrastructure cloud. L'entreprise a déclaré un dividende en espèces trimestriel de 0,05 dollar par action, payable le 31 décembre 2024. Le flux de trésorerie libre a diminué de 45% pour atteindre 9,3 millions de dollars au 3e trimestre 2024. Le bilan montre des liquidités et des valeurs mobilières de 93,1 millions de dollars et une dette totale de 187,8 millions de dollars. L'EBITDA consolidé pour le 3e trimestre 2024 était de 15,1 millions de dollars.
Entravision Communications (NYSE: EVC) berichtete über die finanziellen Ergebnisse für das 3. Quartal 2024, die einen Anstieg der Nettoeinnahmen um 25% auf 97,2 Millionen USD im Vergleich zum 3. Quartal 2023 zeigen, getragen von politischer Werbung und Smadex. Das Unternehmen hat seine Aktivitäten in zwei Segmente umstrukturiert: Medientechnologie und Werbedienstleistungen. Trotz des Umsatzwachstums berichtete Entravision von einem Nettoverlust aus fortgeführten Aktivitäten von 10,8 Millionen USD, was einem Anstieg von 78% gegenüber dem Verlust von 6,1 Millionen USD im Vorjahr entspricht. Die Betriebsausgaben stiegen um 30% auf 52,7 Millionen USD, was auf höhere Gehälter und Kosten für Cloud-Infrastruktur zurückzuführen ist. Das Unternehmen erklärte eine vierteljährliche Bar-Dividende von 0,05 USD pro Aktie, die am 31. Dezember 2024 zahlbar ist. Der freie Cashflow sank im 3. Quartal 2024 um 45% auf 9,3 Millionen USD. Die Bilanz zeigt Barmittel und marktfähige Wertpapiere von 93,1 Millionen USD und eine Gesamtschuld von 187,8 Millionen USD. Das konsolidierte EBITDA für das 3. Quartal 2024 betrug 15,1 Millionen USD.
- Net revenue increased by 25% to $97.2 million in Q3 2024.
- Advertising Technology & Services segment revenue grew by 30% to $37.4 million.
- Quarterly cash dividend of $0.05 per share declared.
- Net loss from continuing operations increased by 78% to $10.8 million.
- Operating expenses rose by 30% to $52.7 million.
- Free cash flow decreased by 45% to $9.3 million.
Insights
Entravision's Q3 2024 results show mixed performance with 25% revenue growth to
The restructuring into two segments - Media and Ad Tech - shows divergent performance. Media revenue grew
The restructuring into Media and Ad Tech segments reveals Entravision's strategic pivot toward digital transformation. The Ad Tech segment, particularly Smadex's programmatic platform, shows strong momentum with
The traditional Media segment's
New Operating Segments
Double Digit Revenue Growth
Declares Quarterly Cash Dividend of
"During the third quarter we realigned our operating segments into two segments: Media and Advertising Technology & Services. Our media segment consists of sales of advertising through various media, including television, radio and digital. Our advertising technology & services segment consists of Smadex, our programmatic ad purchasing platform, and Adwake, our mobile growth solutions business," 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 |
|
Nine-Month Period |
||||||||||||||||||||
|
Ended September 30, |
|
Ended September 30, |
||||||||||||||||||||
|
2024 |
|
2023 |
|
% Change |
|
2024 |
|
2023 |
|
% Change |
||||||||||||
Net revenue |
$ |
97,156 |
|
|
$ |
77,420 |
|
|
|
25 |
% |
|
$ |
257,986 |
|
|
$ |
218,787 |
|
|
|
18 |
% |
Cost of revenue (1) |
|
26,801 |
|
|
|
21,393 |
|
|
|
25 |
% |
|
|
73,883 |
|
|
|
57,910 |
|
|
|
28 |
% |
Operating expenses (2) (5) |
|
52,729 |
|
|
|
40,648 |
|
|
|
30 |
% |
|
|
144,983 |
|
|
|
121,523 |
|
|
|
19 |
% |
Corporate expenses (3) (5) |
|
6,930 |
|
|
|
13,292 |
|
|
|
(48 |
)% |
|
|
29,989 |
|
|
|
35,836 |
|
|
|
(16 |
)% |
Foreign currency (gain) loss |
|
(121 |
) |
|
|
269 |
|
|
* |
|
|
120 |
|
|
|
1,274 |
|
|
|
(91 |
)% |
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss) from continuing operations |
$ |
(10,841 |
) |
|
$ |
(6,103 |
) |
|
|
78 |
% |
|
$ |
(14,619 |
) |
|
$ |
(19,945 |
) |
|
|
(27 |
)% |
Net income (loss) from discontinued operations, net of tax |
$ |
(1,139 |
) |
|
$ |
8,822 |
|
|
* |
|
$ |
(77,931 |
) |
|
$ |
22,716 |
|
|
* |
||||
Net income (loss) attributable to common stockholders |
$ |
(11,980 |
) |
|
$ |
2,719 |
|
|
* |
|
$ |
(92,550 |
) |
|
$ |
2,771 |
|
|
* |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash flows from operating activities |
$ |
10,851 |
|
|
$ |
22,026 |
|
|
|
(51 |
)% |
|
$ |
61,922 |
|
|
$ |
69,117 |
|
|
|
(10 |
)% |
Free cash flow (4) |
$ |
9,299 |
|
|
$ |
17,003 |
|
|
|
(45 |
)% |
|
$ |
55,633 |
|
|
$ |
49,236 |
|
|
|
13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss) per share from continuing operations, basic and diluted |
$ |
(0.12 |
) |
|
$ |
(0.07 |
) |
|
|
71 |
% |
|
$ |
(0.16 |
) |
|
$ |
(0.23 |
) |
|
|
(30 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss) per share from discontinued operations, basic and diluted |
$ |
(0.01 |
) |
|
$ |
0.10 |
|
|
* |
|
$ |
(0.87 |
) |
|
$ |
0.26 |
|
|
* |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss) per share attributable to common stockholders, basic and diluted |
$ |
(0.13 |
) |
|
$ |
0.03 |
|
|
* |
|
$ |
(1.03 |
) |
|
$ |
0.03 |
|
|
* |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Weighted average common shares outstanding, basic and diluted |
|
89,987,110 |
|
|
|
87,995,567 |
|
|
|
|
|
89,776,075 |
|
|
|
87,803,770 |
|
|
|
(1) |
Consists 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. |
|
(5) |
Effective July 1, 2024, with the realignment of our operations and reassignment of certain responsibilities, certain costs that were previously included as corporate expenses, primarily salaries, are now included in operating expenses. |
Net revenue for the three- and nine-month periods ended September 30, 2024 increased primarily due to an increase in advertising revenue from our media segment, and an increase in advertising revenue from our advertising technology & services segment. The increase was partially offset by decreases in spectrum usage rights revenue and retransmission consent revenue in our media segment.
Cost of revenue for the three- and nine-month periods ended September 30, 2024 increased primarily due to the increase in digital advertising revenue.
Operating expenses for the three- and nine-month periods ended September 30, 2024 increased primarily due to an increase in salaries, primarily associated with the expansion of our news programming in our media segment, and increases in salaries and cloud infrastructure expenses associated with the increase in revenue in our advertising technology & services segment. Additionally, effective July 1, 2024, with the realignment of our operations and reassignment of certain responsibilities, certain costs that were previously included as corporate expenses, primarily salaries, are now included in operating expenses.
Corporate expenses for the three-month period ended September 30, 2024 decreased primarily due to a decrease in salaries and bonus expense, a decrease in non-cash stock-based compensation, a decrease in professional services expense, and a decrease due to the realignment of our operations as noted above. This decrease was partially offset by an increase in audit fees.
Corporate expenses for the nine-month period ended September 30, 2024 decreased primarily due to a decrease in salaries and bonus expense, a decrease in non-cash stock-based compensation, a decrease in professional services expense, and a decrease due to the realignment of our operations as noted above. This decrease was partially offset by an increase in severance expense.
New Operating Segments
Effective July 1, 2024, we have realigned our operating segments into two segments – media and advertising technology & services – consistent with our current operational and management structure. Our media segment consists of sales of advertising through various media, including television, radio and digital. We own and/or operate 49 primary television stations and 44 radio stations (37 FM and 7 AM), reaching and engaging
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 September 30, 2024 totaled
Consolidated EBITDA, as defined in our 2023 Credit Agreement was
Unaudited Segment Results (In thousands)
|
Three-Month Period |
|
Nine-Month Period |
||||||||||||||||||||
|
Ended September 30, |
|
Ended September 30, |
||||||||||||||||||||
|
2024 |
|
2023 |
|
% Change |
|
2024 |
|
2023 |
|
% Change |
||||||||||||
Net Revenue |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Media |
$ |
59,802 |
|
$ |
48,746 |
|
|
23 |
% |
|
$ |
154,801 |
|
$ |
144,614 |
|
|
7 |
% |
||||
Advertising Technology & Services |
|
37,354 |
|
|
|
28,674 |
|
|
|
30 |
% |
|
|
103,185 |
|
|
|
74,173 |
|
|
|
39 |
% |
Total |
$ |
97,156 |
|
|
$ |
77,420 |
|
|
|
25 |
% |
|
$ |
257,986 |
|
|
$ |
218,787 |
|
|
|
18 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of Revenue (1) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Media |
$ |
4,881 |
|
|
$ |
2,840 |
|
|
|
72 |
% |
|
$ |
11,888 |
|
|
$ |
7,661 |
|
|
|
55 |
% |
Advertising Technology & Services |
|
21,920 |
|
|
|
18,553 |
|
|
|
18 |
% |
|
|
61,995 |
|
|
|
50,249 |
|
|
|
23 |
% |
Total |
$ |
26,801 |
|
|
$ |
21,393 |
|
|
|
25 |
% |
|
$ |
73,883 |
|
|
$ |
57,910 |
|
|
|
28 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating Expenses (1) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Media |
|
40,053 |
|
|
|
32,787 |
|
|
|
22 |
% |
|
|
113,005 |
|
|
|
99,043 |
|
|
|
14 |
% |
Advertising Technology & Services |
|
12,676 |
|
|
|
7,861 |
|
|
|
61 |
% |
|
|
31,978 |
|
|
|
22,480 |
|
|
|
42 |
% |
Total |
$ |
52,729 |
|
|
$ |
40,648 |
|
|
|
30 |
% |
|
$ |
144,983 |
|
|
$ |
121,523 |
|
|
|
19 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Corporate Expenses (1) |
$ |
6,930 |
|
|
$ |
13,292 |
|
|
|
(48 |
)% |
|
$ |
29,989 |
|
|
$ |
35,836 |
|
|
|
(16 |
)% |
(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 third quarter 2024 results on Thursday, November 7, 2024 at 5:00 p.m. Eastern Time. To access the conference call, please dial 1-800-717-1738 or 1-646-307-1865 ten minutes prior to the start time. 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 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 |
|
Nine-Month Period |
||||||||||||
|
|
Ended September 30, |
|
Ended September 30, |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net revenue |
|
$ |
97,156 |
|
|
$ |
77,420 |
|
|
$ |
257,986 |
|
|
$ |
218,787 |
|
|
|
|
|
|
|
|
|
|
||||||||
Expenses: |
|
|
|
|
|
|
|
|
||||||||
Cost of revenue |
|
|
26,801 |
|
|
|
21,393 |
|
|
|
73,883 |
|
|
|
57,910 |
|
Direct operating expenses |
|
|
35,617 |
|
|
|
28,702 |
|
|
|
99,174 |
|
|
|
84,160 |
|
Selling, general and administrative expenses |
|
|
17,112 |
|
|
|
11,946 |
|
|
|
45,809 |
|
|
|
37,363 |
|
Corporate expenses |
|
|
6,930 |
|
|
|
13,292 |
|
|
|
29,989 |
|
|
|
35,836 |
|
Depreciation and amortization |
|
|
3,882 |
|
|
|
4,733 |
|
|
|
13,049 |
|
|
|
11,948 |
|
Change in fair value of contingent consideration |
|
|
(650 |
) |
|
|
(100 |
) |
|
|
(630 |
) |
|
|
621 |
|
Impairment charge |
|
|
— |
|
|
|
989 |
|
|
|
— |
|
|
|
989 |
|
Foreign currency (gain) loss |
|
|
(121 |
) |
|
|
269 |
|
|
|
120 |
|
|
|
1,274 |
|
|
|
|
89,571 |
|
|
|
81,224 |
|
|
|
261,394 |
|
|
|
230,101 |
|
Operating income (loss) |
|
|
7,585 |
|
|
|
(3,804 |
) |
|
|
(3,408 |
) |
|
|
(11,314 |
) |
Interest expense |
|
|
(4,087 |
) |
|
|
(4,346 |
) |
|
|
(12,648 |
) |
|
|
(12,464 |
) |
Interest income |
|
|
646 |
|
|
|
1,068 |
|
|
|
1,801 |
|
|
|
2,396 |
|
Dividend income |
|
|
— |
|
|
|
— |
|
|
|
10 |
|
|
|
32 |
|
Realized gain (loss) on marketable securities |
|
|
(1 |
) |
|
|
(33 |
) |
|
|
(110 |
) |
|
|
(94 |
) |
Gain (loss) on debt extinguishment |
|
|
— |
|
|
|
— |
|
|
|
(91 |
) |
|
|
(1,556 |
) |
Income (loss) before income taxes |
|
|
4,143 |
|
|
|
(7,115 |
) |
|
|
(14,446 |
) |
|
|
(23,000 |
) |
Income tax benefit (expense) |
|
|
(14,984 |
) |
|
|
1,012 |
|
|
|
(173 |
) |
|
|
3,055 |
|
Net income (loss) from continuing operations |
|
|
(10,841 |
) |
|
|
(6,103 |
) |
|
|
(14,619 |
) |
|
|
(19,945 |
) |
Net income (loss) from discontinued operations, net of tax |
|
|
(1,139 |
) |
|
|
8,822 |
|
|
|
(77,931 |
) |
|
|
22,716 |
|
Net income (loss) attributable to common stockholders |
|
$ |
(11,980 |
) |
|
$ |
2,719 |
|
|
$ |
(92,550 |
) |
|
$ |
2,771 |
|
|
|
|
|
|
|
|
|
|
||||||||
Basic and diluted earnings per share: |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share from continuing operations, basic and diluted |
|
$ |
(0.12 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.16 |
) |
|
$ |
(0.23 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share from discontinued operations, basic and diluted |
|
$ |
(0.01 |
) |
|
$ |
0.10 |
|
|
$ |
(0.87 |
) |
|
$ |
0.26 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share attributable to common stockholders, basic and diluted |
|
$ |
(0.13 |
) |
|
$ |
0.03 |
|
|
$ |
(1.03 |
) |
|
$ |
0.03 |
|
|
|
|
|
|
|
|
|
|
||||||||
Cash dividends declared per common share, basic and diluted |
|
$ |
0.05 |
|
|
$ |
0.05 |
|
|
$ |
0.15 |
|
|
$ |
0.15 |
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding, basic and diluted |
|
|
89,987,110 |
|
|
|
87,995,567 |
|
|
|
89,776,075 |
|
|
|
87,803,770 |
|
Entravision Communications Corporation |
||||||||
Consolidated Balance Sheets |
||||||||
(In thousands; unaudited) |
||||||||
|
|
September 30, |
|
December 31, |
||||
|
|
2024 |
|
2023 |
||||
ASSETS |
|
|
|
|
||||
Current assets |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
90,258 |
|
|
$ |
67,398 |
|
Marketable securities |
|
|
2,826 |
|
|
|
13,172 |
|
Restricted cash |
|
|
783 |
|
|
|
770 |
|
Trade receivables, net of allowance for doubtful accounts |
|
|
69,758 |
|
|
|
70,082 |
|
Assets held for sale |
|
|
- |
|
|
|
301 |
|
Prepaid expenses and other current assets |
|
|
31,763 |
|
|
|
16,863 |
|
Current assets of discontinued operations |
|
|
- |
|
|
|
217,269 |
|
Total current assets |
|
|
195,388 |
|
|
|
385,855 |
|
Property and equipment, net |
|
|
61,297 |
|
|
|
66,932 |
|
Intangible assets subject to amortization, net |
|
|
4,890 |
|
|
|
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 |
|
|
41,742 |
|
|
|
42,868 |
|
Other assets |
|
|
8,007 |
|
|
|
21,223 |
|
Noncurrent assets of discontinued operations |
|
|
- |
|
|
|
95,855 |
|
Total assets |
|
$ |
557,258 |
|
|
$ |
865,946 |
|
|
|
|
|
|
||||
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
||||
Current liabilities |
|
|
|
|
||||
Current maturities of long-term debt |
|
$ |
- |
|
|
$ |
8,750 |
|
Accounts payable and accrued expenses |
|
|
64,528 |
|
|
|
47,776 |
|
Operating lease liabilities |
|
|
7,740 |
|
|
|
6,748 |
|
Current liabilities of discontinued operations |
|
|
- |
|
|
|
208,779 |
|
Total current liabilities |
|
|
72,268 |
|
|
|
272,053 |
|
Long-term debt, less current maturities, net of unamortized debt issuance costs |
|
|
186,902 |
|
|
|
197,884 |
|
Long-term operating lease liabilities |
|
|
43,171 |
|
|
|
45,178 |
|
Other long-term liabilities |
|
|
4,443 |
|
|
|
4,624 |
|
Deferred income taxes |
|
|
43,111 |
|
|
|
46,849 |
|
Noncurrent liabilities of discontinued operations |
|
|
- |
|
|
|
33,072 |
|
Total liabilities |
|
|
349,895 |
|
|
|
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 |
|
|
820,491 |
|
|
|
743,246 |
|
Accumulated deficit |
|
|
(612,362 |
) |
|
|
(519,812 |
) |
Accumulated other comprehensive income (loss) |
|
|
(775 |
) |
|
|
(915 |
) |
Total stockholders' equity |
|
|
207,363 |
|
|
|
222,528 |
|
Total liabilities, redeemable noncontrolling interest and equity |
|
$ |
557,258 |
|
|
$ |
865,946 |
|
Entravision Communications Corporation |
||||||||||||||||
Consolidated Statements of Cash Flows |
||||||||||||||||
(In thousands; unaudited) |
||||||||||||||||
|
|
Three-Month Period |
|
Nine-Month Period |
||||||||||||
|
|
Ended September 30, |
|
Ended September 30, |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
|
$ |
(11,980 |
) |
|
$ |
2,719 |
|
|
$ |
(92,550 |
) |
|
$ |
2,771 |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
|
3,882 |
|
|
|
7,356 |
|
|
|
17,007 |
|
|
|
20,336 |
|
Impairment charge |
|
|
— |
|
|
|
989 |
|
|
|
49,438 |
|
|
|
989 |
|
Deferred income taxes |
|
|
(3,500 |
) |
|
|
(40 |
) |
|
|
(3,286 |
) |
|
|
(169 |
) |
Non-cash interest |
|
|
63 |
|
|
|
85 |
|
|
|
223 |
|
|
|
264 |
|
Amortization of syndication contracts |
|
|
112 |
|
|
|
118 |
|
|
|
339 |
|
|
|
358 |
|
Payments on syndication contracts |
|
|
(108 |
) |
|
|
(125 |
) |
|
|
(337 |
) |
|
|
(366 |
) |
Non-cash stock-based compensation |
|
|
3,688 |
|
|
|
7,032 |
|
|
|
12,422 |
|
|
|
17,053 |
|
(Gain) loss on marketable securities |
|
|
1 |
|
|
|
33 |
|
|
|
110 |
|
|
|
94 |
|
(Gain) loss on disposal of property and equipment |
|
|
23 |
|
|
|
(29 |
) |
|
|
206 |
|
|
|
(11 |
) |
Loss (gain) on the sale of businesses |
|
|
125 |
|
|
|
— |
|
|
|
45,139 |
|
|
|
— |
|
(Gain) loss on debt extinguishment |
|
|
— |
|
|
|
— |
|
|
|
91 |
|
|
|
1,556 |
|
Change in fair value of contingent consideration |
|
|
(650 |
) |
|
|
(5,997 |
) |
|
|
(13,198 |
) |
|
|
(8,939 |
) |
Net income (loss) attributable to redeemable noncontrolling interest - discontinued operations |
|
|
— |
|
|
|
13 |
|
|
|
(2,779 |
) |
|
|
1 |
|
Net income (loss) attributable to noncontrolling interest - discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(342 |
) |
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
||||||||
(Increase) decrease in accounts receivable |
|
|
1,025 |
|
|
|
(1,219 |
) |
|
|
10,611 |
|
|
|
16,261 |
|
(Increase) decrease in prepaid expenses and other current assets, operating leases right of use asset and other assets |
|
|
17,662 |
|
|
|
(3,902 |
) |
|
|
(1,928 |
) |
|
|
(7,199 |
) |
Increase (decrease) in accounts payable, accrued expenses and other liabilities |
|
|
508 |
|
|
|
14,993 |
|
|
|
40,414 |
|
|
|
26,460 |
|
Net cash provided by operating activities |
|
|
10,851 |
|
|
|
22,026 |
|
|
|
61,922 |
|
|
|
69,117 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
||||||||
Proceeds from sale of businesses, net of cash divested |
|
|
— |
|
|
|
33 |
|
|
|
(42,967 |
) |
|
|
83 |
|
Purchases of property and equipment |
|
|
(1,552 |
) |
|
|
(5,023 |
) |
|
|
(6,289 |
) |
|
|
(19,881 |
) |
Purchase of a business, net of cash acquired |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6,930 |
) |
Purchases of marketable securities |
|
|
— |
|
|
|
(1,183 |
) |
|
|
— |
|
|
|
(11,355 |
) |
Proceeds from sale of marketable securities |
|
|
362 |
|
|
|
10,000 |
|
|
|
10,381 |
|
|
|
38,093 |
|
Proceeds from loan receivable |
|
|
— |
|
|
|
— |
|
|
|
10,748 |
|
|
|
— |
|
Purchases of investments |
|
|
— |
|
|
|
(100 |
) |
|
|
— |
|
|
|
(300 |
) |
Issuance of loan receivable |
|
|
— |
|
|
|
(5,550 |
) |
|
|
— |
|
|
|
(13,636 |
) |
Net cash provided by (used in) investing activities |
|
|
(1,190 |
) |
|
|
(1,823 |
) |
|
|
(28,127 |
) |
|
|
(13,926 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
||||||||
Proceeds from stock option exercises |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
554 |
|
Tax payments related to shares withheld for share-based compensation plans |
|
|
— |
|
|
|
(63 |
) |
|
|
(27 |
) |
|
|
(158 |
) |
Payments on debt |
|
|
— |
|
|
|
(1,250 |
) |
|
|
(20,275 |
) |
|
|
(214,495 |
) |
Dividends paid |
|
|
(4,499 |
) |
|
|
(4,400 |
) |
|
|
(13,471 |
) |
|
|
(13,182 |
) |
Distributions to noncontrolling interest |
|
|
— |
|
|
|
— |
|
|
|
(1,078 |
) |
|
|
(3,380 |
) |
Payment of contingent consideration |
|
|
— |
|
|
|
(3,403 |
) |
|
|
(14,300 |
) |
|
|
(35,113 |
) |
Principal payments under finance lease obligation |
|
|
(36 |
) |
|
|
(37 |
) |
|
|
(110 |
) |
|
|
(113 |
) |
Proceeds from borrowings on debt |
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
212,420 |
|
Payments for debt issuance costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,777 |
) |
Net cash provided by (used in) financing activities |
|
|
(4,535 |
) |
|
|
(9,152 |
) |
|
|
(49,261 |
) |
|
|
(55,244 |
) |
Effect of exchange rates on cash, cash equivalents and restricted cash |
|
|
— |
|
|
|
(3 |
) |
|
|
(2 |
) |
|
|
(2 |
) |
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
|
5,126 |
|
|
|
11,048 |
|
|
|
(15,468 |
) |
|
|
(55 |
) |
Cash, cash equivalents and restricted cash: |
|
|
|
|
|
|
|
|
||||||||
Beginning |
|
|
85,915 |
|
|
|
100,341 |
|
|
|
106,509 |
|
|
|
111,444 |
|
Ending |
|
$ |
91,041 |
|
|
$ |
111,389 |
|
|
$ |
91,041 |
|
|
$ |
111,389 |
|
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 |
|
Nine-Month Period |
||||||||||||
|
|
Ended September 30, |
|
Ended September 30, |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net income (loss) attributable to common stockholders |
|
$ |
(11,980 |
) |
|
$ |
2,719 |
|
|
$ |
(92,550 |
) |
|
$ |
2,771 |
|
Net income (loss) attributable to redeemable noncontrolling interest - discontinued operations |
|
|
— |
|
|
|
13 |
|
|
|
(2,779 |
) |
|
|
1 |
|
Net income (loss) attributable to noncontrolling interest - discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(342 |
) |
Interest expense |
|
|
4,087 |
|
|
|
4,346 |
|
|
|
12,648 |
|
|
|
12,464 |
|
Interest expense - discontinued operations |
|
|
— |
|
|
|
108 |
|
|
|
219 |
|
|
|
324 |
|
Interest income |
|
|
(646 |
) |
|
|
(1,068 |
) |
|
|
(1,801 |
) |
|
|
(2,396 |
) |
Interest income - discontinued operations |
|
|
— |
|
|
|
(490 |
) |
|
|
(731 |
) |
|
|
(1,059 |
) |
Dividend income |
|
|
— |
|
|
|
— |
|
|
|
(10 |
) |
|
|
(32 |
) |
Realized gain (loss) on marketable securities |
|
|
1 |
|
|
|
33 |
|
|
|
110 |
|
|
|
94 |
|
(Gain) loss on debt extinguishment |
|
|
— |
|
|
|
— |
|
|
|
91 |
|
|
|
1,556 |
|
Income tax expense |
|
|
14,984 |
|
|
|
(1,012 |
) |
|
|
173 |
|
|
|
(3,055 |
) |
Income tax expense - discontinued operations |
|
|
(125 |
) |
|
|
482 |
|
|
|
(770 |
) |
|
|
2,017 |
|
Amortization of syndication contracts |
|
|
112 |
|
|
|
118 |
|
|
|
339 |
|
|
|
358 |
|
Payments on syndication contracts |
|
|
(108 |
) |
|
|
(125 |
) |
|
|
(337 |
) |
|
|
(366 |
) |
Non-cash stock-based compensation |
|
|
3,688 |
|
|
|
7,032 |
|
|
|
12,422 |
|
|
|
17,053 |
|
Depreciation and amortization |
|
|
3,882 |
|
|
|
4,733 |
|
|
|
13,049 |
|
|
|
11,948 |
|
Depreciation and amortization - discontinued operations |
|
|
— |
|
|
|
2,623 |
|
|
|
3,958 |
|
|
|
8,388 |
|
Change in fair value of contingent consideration |
|
|
(650 |
) |
|
|
(100 |
) |
|
|
(630 |
) |
|
|
621 |
|
Change in fair value of contingent consideration - discontinued operations |
|
|
— |
|
|
|
(5,897 |
) |
|
|
(12,568 |
) |
|
|
(9,560 |
) |
Impairment charge |
|
|
— |
|
|
|
989 |
|
|
|
— |
|
|
|
989 |
|
Impairment charge - discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
49,438 |
|
|
|
— |
|
Non-recurring cash severance and restructuring charge |
|
|
1,722 |
|
|
|
— |
|
|
|
4,849 |
|
|
|
612 |
|
Other operating (gain) loss - discontinued operations |
|
|
125 |
|
|
|
— |
|
|
|
45,139 |
|
|
|
— |
|
EBITDA attributable to redeemable noncontrolling interest - discontinued operations |
|
|
— |
|
|
|
(319 |
) |
|
|
(167 |
) |
|
|
(736 |
) |
EBITDA attributable to noncontrolling interest - discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(230 |
) |
Consolidated EBITDA (1) |
|
$ |
15,092 |
|
|
$ |
14,185 |
|
|
$ |
30,092 |
|
|
$ |
41,420 |
|
(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 |
|
Nine-Month Period |
||||||||||||
|
|
Ended September 30, |
|
Ended September 30, |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Cash flows from operating activities |
|
$ |
10,851 |
|
|
$ |
22,026 |
|
|
$ |
61,922 |
|
|
$ |
69,117 |
|
Cash paid for capital expenditures (2) |
|
|
(1,552 |
) |
|
|
(5,023 |
) |
|
|
(6,289 |
) |
|
|
(19,881 |
) |
Free cash flow (1) |
|
$ |
9,299 |
|
|
$ |
17,003 |
|
|
$ |
55,633 |
|
|
$ |
49,236 |
|
(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/20241106570064/en/
For more information, please contact:
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
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