Form 8-K - Current report

false0001109116ENTRAVISION COMMUNICATIONS CORP00011091162024-08-082024-08-08

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 08, 2024

 

 

ENTRAVISION COMMUNICATIONS CORPORATION

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware			001-15997	95-4783236
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS Employer Identification No.)
2425 Olympic Boulevard Suite 6000 West
Santa Monica, California				90404
(Address of Principal Executive Offices)				(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: 310 447-3870

 

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Class A Common Stock		EVC		The New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

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Item 2.02 Results of Operations and Financial Condition.

On August 8, 2024, Entravision Communications Corporation (the “Company”) issued a press release announcing its results of operations for the three- and six-month periods ended June 30, 2024. A copy of that press release is furnished herewith as Exhibit 99.1.

 

The information provided pursuant to Item 2.02 in this Current Report on Form 8-K, including the exhibit thereto, is being furnished under Item 2.02 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed to be incorporated by reference into any future registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, regardless of the general incorporation language of such filing, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

99.1	Press release issued by Entravision Communications Corporation on August 8, 2024 announcing its results of operations for the three- and six-month periods ended June 30, 2024.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			ENTRAVISION COMMUNICATIONS CORPORATION
Date:	August 8, 2024	By:	/s/ Michael J. Christenson
			Michael J. Christenson Chief Executive Officer

 

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Entravision Communications

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Exhibit 99.1

 

 

ENTRAVISION COMMUNICATIONS CORPORATION REPORTS

SECOND QUARTER 2024 RESULTS

Declares Quarterly Cash Dividend of $0.05 Per Share Payable on September 30, 2024

Discontinues Entravision Global Partners Business

SANTA MONICA, CALIFORNIA, August 8, 2024 – Entravision Communications Corporation (NYSE: EVC), a media and advertising technology company, today announced financial results for the three- and six-month periods ended June 30, 2024.

"During the second quarter of 2024 we conducted a review of our digital strategy, operations and cost structure, and made the decision to sell Entravision Global Partners ("EGP"), our global digital commercial partnerships business. The sale was completed during the quarter, and the EGP business is reported as discontinued operations in our financial statements," said Michael Christenson, Chief Executive Officer.

Mr. Christenson continued, "Our net revenue from continuing operations increased 12% in the second quarter of 2024 compared to the same quarter in 2023. We remain focused on our 2024 priorities: maximize political revenue, provide highly-rated news and content to our audiences, strengthen our digital marketing solutions in combination with our television and audio offerings, and continue to grow Smadex, our programmatic ad purchasing platform.”

Unaudited Financial Highlights (In thousands, except share and per share data)

	Three-Month Period												Six-Month Period
	Ended June 30,												Ended June 30,
	2024				2023				% Change				2024				2023				% Change
Net revenue	$	82,654			$	73,719				12	%		$	160,830			$	141,366				14	%
Cost of revenue - digital (1)		24,424				19,649				24	%			47,082				36,516				29	%
Operating expenses (2)		46,119				41,466				11	%			92,254				80,875				14	%
Corporate expenses (3)		10,811				12,042				(10	)%			23,059				22,544				2	%
Foreign currency (gain) loss		(24	)			792			*					241				1,006				(76	)%
Net income (loss) from continuing operations	$	3,732			$	(5,826	)		*				$	(3,778	)		$	(13,842	)			(73	)%
Net income (loss) from discontinued operations, net of tax	$	(35,412	)		$	3,837			*				$	(76,792	)		$	13,894			*
Net income (loss) attributable to common stockholders	$	(31,680	)		$	(1,989	)			1493	%		$	(80,570	)		$	52			*
Cash flows from operating activities	$	17,696			$	10,396				70	%		$	51,071			$	47,091				8	%
Free cash flow (4)	$	15,702			$	2,288				586	%		$	46,334			$	32,233				44	%
Net income (loss) per share from continuing operations, basic and diluted	$	0.04			$	(0.07	)		*				$	(0.04	)		$	(0.16	)			(75	)%
Net income (loss) per share from discontinued operations, basic and diluted	$	(0.39	)		$	0.04			*				$	(0.86	)		$	0.16			*
Net income (loss) per share attributable to common stockholders, basic and diluted	$	(0.35	)		$	(0.02	)			1650	%		$	(0.90	)		$	0.00			*
Weighted average common shares outstanding, basic		89,820,737				87,787,772								89,669,397				87,706,282
Weighted average common shares outstanding, diluted		90,721,280				87,787,772								89,669,397				87,706,282

 

 

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Entravision Communications

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(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 $1.5 million and $2.2 million of non-cash stock-based compensation for the three-month periods ended June 30, 2024 and 2023, respectively, and $2.9 million and $3.7 million of non-cash stock-based compensation for the six-month periods ended June 30, 2024 and 2023, respectively.

(3)

Corporate expenses include $2.7 million and $3.2 million of non-cash stock-based compensation for the three-month periods ended June 30, 2024 and 2023, respectively, and $6.4 million and $5.4 million of non-cash stock-based compensation for the six-month periods ended June 30, 2024 and 2023, respectively.

(4)

Free cash flow is defined as cash flows from operating activities less cash paid for capital expenditures.

Net revenue for the three- and six-month periods ended June 30, 2024 increased primarily due to an increase in advertising revenue from our digital business units in our digital segment, and political advertising revenue in our television and audio segments, partially offset by decreases in advertising revenue, spectrum usage rights revenue and retransmission consent revenue in our television segment, and a decrease in advertising revenue in our audio segment.

Cost of revenue for the three- and six-month periods ended June 30, 2024 increased primarily due to the increase in digital advertising revenue.

Operating expenses for the three-month period ended June 30, 2024 increased primarily due to increases in salaries and cloud infrastructure expenses associated with the increase in digital advertising revenue, and an increase in salaries, primarily associated with the expansion of our news programming in our television segment, partially offset by a decrease in rent expense and a decrease in expenses associated with the decrease in advertising revenue in our audio segment.

Operating expenses for the six-month period ended June 30, 2024 increased primarily due to increases in salaries and cloud infrastructure expenses associated with the increase in digital advertising revenue, and an increase in salaries, primarily associated with the expansion of our news programming in our television segment, partially offset by a decrease in rent expense and a decrease in expenses associated with the decrease in advertising revenue in our audio segment.

Corporate expenses for the three-month period ended June 30, 2024 decreased primarily due to a decrease in professional services expense, and a decrease in non-cash stock-based compensation, partially offset by an increase in severance expense.

Corporate expenses for the six-month period ended June 30, 2024 increased primarily due to an increase in severance expense, an increase in non-cash stock-based compensation, and an increase in salaries, partially offset by a decrease in professional services expense.

Sale of EGP

As a result of the communication from Meta on March 4, 2024, that it intended to wind down its Authorized Sales Partners ("ASP") program globally and end its relationship with all of its ASPs, including us, by July 1, 2024, we conducted a thorough review of our digital strategy, operations and cost structure, and during the second quarter of 2024 made the decision to dispose of the operations of EGP, our digital commercial partnerships business. The disposition of EGP will allow us to enhance our strategic focus on our media business and our advertising technology business. The results of the EGP business are reported as discontinued operations in our financial statements.

Quarterly Cash Dividend

The Company announced today that its Board of Directors approved a quarterly cash dividend to shareholders of $0.05 per share on the Company's Class A and Class U common stock, in an aggregate amount of $4.5 million. The quarterly dividend will be payable on September 30, 2024 to shareholders of record as of the close of business on September 16, 2024. 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. 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 $50.0 million of unrestricted cash) to trailing-twelve-month consolidated EBITDA, affects both our ability to

 

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Entravision Communications

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borrow from our Revolving Credit Facility and our applicable margin for the interest rate calculation. Under our 2023 Credit Agreement, our maximum total leverage ratio may not exceed 3.25 to 1.00. In addition, our 2023 Credit Agreement contains an interest coverage ratio financial covenant (calculated as set forth in the 2023 Credit Agreement), with a minimum permitted ratio of 3.00 to 1.00.

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 the United States of America, such as operating income (loss), net income (loss) and cash flows from operating activities. Consolidated EBITDA has certain limitations because it excludes and includes several important financial line items as noted above. Therefore, we consider both non-GAAP and GAAP measures when evaluating our business. Consolidated EBITDA is also used to make executive compensation decisions.

We calculate Consolidated EBITDA as net income (loss) plus gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation included in operating and corporate expenses, net interest expense, other operating gain (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from the Federal Communications Commission, or FCC, spectrum incentive auction less related expenses, expenses associated with investments, change in fair value of contingent consideration, non-recurring cash severance and restructuring charge, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings.

Free Cash Flow

We use the term free cash flow as a measure of our liquidity and we believe that it is a useful indicator for potential investors of our ability to implement growth strategies and service our debt. Free cash flow is a non-GAAP measure and should be considered in addition to, but not as a substitute for, information contained in our condensed consolidated statement of cash flows as a measure of liquidity.

We calculate free cash flow as cash flow from operating activities less capital expenditures.

Balance Sheet and Related Metrics

Cash and marketable securities as of June 30, 2024 totaled $88.3 million. Total debt as defined in the Company’s credit agreement was $187.8 million. Net of $50 million of cash and marketable securities, total leverage as defined in the Company’s credit agreement was 3.0 times as of June 30, 2024. Net of total cash and marketable securities, total leverage was 2.2 times.

Consolidated EBITDA, as defined in our 2023 Credit Agreement was $10.5 million and $15.0 million for the three- and six-month periods ended June 30, 2024.

Unaudited Segment Results (In thousands)

	Three-Month Period												Six-Month Period
	Ended June 30,												Ended June 30,
	2024				2023				% Change				2024				2023				% Change
Net Revenue
Digital	$	41,068			$	30,234				36	%		$	79,290			$	55,357				43	%
Television		28,577				29,943				(5	)%			57,126				60,255				(5	)%
Audio		13,009				13,542				(4	)%			24,414				25,754				(5	)%
Total	$	82,654			$	73,719				12	%		$	160,830			$	141,366				14	%
Cost of Revenue - digital (1)
Digital	$	24,424			$	19,649				24	%		$	47,082			$	36,516				29	%
Operating Expenses (1)
Digital		12,779				9,879				29	%			24,724				18,197				36	%
Television		22,635				19,868				14	%			45,603				39,967				14	%
Audio		10,705				11,719				(9	)%			21,927				22,711				(3	)%
Total	$	46,119			$	41,466				11	%		$	92,254			$	80,875				14	%
Corporate Expenses (1)	$	10,811			$	12,042				(10	)%		$	23,059			$	22,544				2	%

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

 

 

 

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Entravision Communications

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Notice of Conference Call

Entravision will hold a conference call to discuss its second quarter 2024 results on Thursday, August 8, 2024 at 4:30 p.m. Eastern Time. To access the conference call, please dial [phone] (U.S.) or [phone] (Int’l) 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 U.S., we maintain a diversified portfolio of television and radio stations and digital advertising services that target Hispanic audiences. Our advertising technology business consists of Smadex, our programmatic ad purchasing platform, and Adwake, our mobile growth solutions business. 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.

For more information, please contact:

Mark Boelke		Roy Nir
Chief Financial Officer		VP, Financial Reporting and Investor Relations
Entravision		Entravision
310-447-3870		310-447-3870
[e-mail]		[e-mail]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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(Financial Table Follows)

 

 

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Entravision Communications

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Entravision Communications Corporation

Consolidated Statements of Operations

(In thousands, except share and per share data)

(Unaudited)

		Three-Month Period								Six-Month Period
		Ended June 30,								Ended June 30,
		2024				2023				2024				2023
Net revenue		$	82,654			$	73,719			$	160,830			$	141,366
Expenses:
Cost of revenue - digital			24,424				19,649				47,082				36,516
Direct operating expenses			31,756				28,856				63,557				55,458
Selling, general and administrative expenses			14,363				12,610				28,697				25,417
Corporate expenses			10,811				12,042				23,059				22,544
Depreciation and amortization			4,428				3,713				9,167				7,214
Change in fair value of contingent consideration			240				21				20				721
Foreign currency (gain) loss			(24	)			792				241				1,006
			85,998				77,683				171,823				148,876
Operating income (loss)			(3,344	)			(3,964	)			(10,993	)			(7,510	)
Interest expense			(4,118	)			(4,195	)			(8,561	)			(8,118	)
Interest income			577				720				1,155				1,328
Dividend income			—				14				10				32
Realized gain (loss) on marketable securities			4				(29	)			(109	)			(61	)
Gain (loss) on debt extinguishment			(51	)			—				(91	)			(1,556	)
Income (loss) before income taxes			(6,932	)			(7,454	)			(18,589	)			(15,885	)
Income tax benefit (expense)			10,664				1,628				14,811				2,043
Net income (loss) from continuing operations			3,732				(5,826	)			(3,778	)			(13,842	)
Net income (loss) from discontinued operations, net of tax			(35,412	)			3,837				(76,792	)			13,894
Net income (loss) attributable to common stockholders		$	(31,680	)		$	(1,989	)		$	(80,570	)		$	52
Basic and diluted earnings per share:
Net income (loss) per share from continuing operations, basic and diluted		$	0.04			$	(0.07	)		$	(0.04	)		$	(0.16	)
Net income (loss) per share from discontinued operations, basic and diluted		$	(0.39	)		$	0.04			$	(0.86	)		$	0.16
Net income (loss) per share attributable to common stockholders, basic and diluted		$	(0.35	)		$	(0.02	)		$	(0.90	)		$	0.00
Cash dividends declared per common share, basic and diluted		$	0.05			$	0.05			$	0.10			$	0.10
Weighted average common shares outstanding, basic			89,820,737				87,787,772				89,669,397				87,706,282
Weighted average common shares outstanding, diluted			90,721,280				87,787,772				89,669,397				87,706,282

 

 

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Entravision Communications

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Entravision Communications Corporation

Consolidated Balance Sheets

(In thousands; unaudited)

		June 30,				December 31,
		2024				2023
ASSETS
Current assets
Cash and cash equivalents		$	85,136			$	67,398
Marketable securities			3,160				13,172
Restricted cash			779				770
Trade receivables, net of allowance for doubtful accounts			68,847				70,082
Assets held for sale			-				301
Prepaid expenses and other current assets			46,681				16,863
Current assets of discontinued operations			-				217,269
Total current assets			204,603				385,855
Property and equipment, net			63,418				66,932
Intangible assets subject to amortization, net			5,372				7,100
Intangible assets not subject to amortization			195,174				195,174
Goodwill			50,673				50,674
Deferred income taxes			87				265
Operating leases right of use asset			42,799				42,868
Other assets			7,480				21,223
Noncurrent assets of discontinued operations			-				95,855
Total assets		$	569,606			$	865,946
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of long-term debt		$	-			$	8,750
Accounts payable and accrued expenses			59,547				47,776
Operating lease liabilities			7,736				6,748
Current liabilities of discontinued operations			-				208,779
Total current liabilities			67,283				272,053
Long-term debt, less current maturities, net of unamortized debt issuance costs			186,847				197,884
Long-term operating lease liabilities			44,127				45,178
Other long-term liabilities			4,370				4,624
Deferred income taxes			46,571				46,849
Noncurrent liabilities of discontinued operations			-				33,072
Total liabilities			349,198				599,660
Redeemable noncontrolling interest - discontinued operations			-				43,758
Stockholders' equity
Class A common stock			8				8
Class U common stock			1				1
Additional paid-in capital			821,590				743,246
Accumulated deficit			(600,382	)			(519,812	)
Accumulated other comprehensive income (loss)			(809	)			(915	)
Total stockholders' equity			220,408				222,528
Total liabilities, redeemable noncontrolling interest and equity		$	569,606			$	865,946

 

 

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Entravision Communications Corporation

Consolidated Statements of Cash Flows

(In thousands; unaudited)

		Three-Month Period								Six-Month Period
		Ended June 30,								Ended June 30,
		2024				2023				2024				2023
Cash flows from operating activities:
Net income (loss)		$	(31,680	)		$	(1,989	)		$	(80,570	)		$	52
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization			5,992				6,509				13,125				12,980
Impairment charge			—				—				49,438				—
Deferred income taxes			4,438				76				214				(129	)
Non-cash interest			68				46				160				179
Amortization of syndication contracts			114				120				227				240
Payments on syndication contracts			(114	)			(121	)			(229	)			(241	)
Non-cash stock-based compensation			3,287				5,968				8,734				10,021
(Gain) loss on marketable securities			(4	)			29				109				61
(Gain) loss on disposal of property and equipment			86				(50	)			183				18
Loss (gain) on the sale of businesses			45,014				—				45,014				—
(Gain) loss on debt extinguishment			51				—				91				1,556
Change in fair value of contingent consideration			(11,128	)			1,123				(12,548	)			(2,942	)
Net income (loss) attributable to redeemable noncontrolling interest - discontinued operations			—				(12	)			(2,779	)			(12	)
Net income (loss) attributable to noncontrolling interest - discontinued operations			—				—				—				(342	)
Changes in assets and liabilities:
(Increase) decrease in accounts receivable			(19,887	)			(15,677	)			9,586				17,480
(Increase) decrease in prepaid expenses and other current assets, operating leases right of use asset and other assets			(12,440	)			(4,245	)			(19,590	)			(3,297	)
Increase (decrease) in accounts payable, accrued expenses and other liabilities			33,899				18,619				39,906				11,467
Net cash provided by operating activities			17,696				10,396				51,071				47,091
Cash flows from investing activities:
Proceeds from sale of businesses, net of cash divested			(42,967	)			—				(42,967	)			—
Proceeds from sale of assets			—				50				—				50
Purchases of property and equipment			(1,994	)			(8,108	)			(4,737	)			(14,858	)
Purchase of a business, net of cash acquired			—				(6,930	)			—				(6,930	)
Purchases of marketable securities			—				(775	)			—				(10,172	)
Proceeds from sale of marketable securities			1,177				12,389				10,019				28,093
Proceeds from loan receivable			10,748				—				10,748				—
Purchases of investments			—				(80	)			—				(200	)
Issuance of loan receivable			—				(8,086	)			—				(8,086	)
Net cash provided by (used in) investing activities			(33,036	)			(11,540	)			(26,937	)			(12,103	)
Cash flows from financing activities:
Proceeds from stock option exercises			—				241				—				554
Tax payments related to shares withheld for share-based compensation plans			—				(15	)			(27	)			(95	)
Payments on debt			(10,000	)			(1,497	)			(20,275	)			(213,245	)
Dividends paid			(4,496	)			(4,396	)			(8,972	)			(8,782	)
Distributions to noncontrolling interest			—				(2,834	)			(1,078	)			(3,380	)
Payment of contingent consideration			(13,400	)			(31,710	)			(14,300	)			(31,710	)
Principal payments under finance lease obligation			(33	)			(38	)			(74	)			(76	)
Proceeds from borrowings on debt			—				14				—				212,419
Payments for debt issuance costs			—				(492	)			—				(1,777	)
Net cash provided by (used in) financing activities			(27,929	)			(40,727	)			(44,726	)			(46,092	)
Effect of exchange rates on cash, cash equivalents and restricted cash			—				—				(2	)			1
Net increase (decrease) in cash, cash equivalents and restricted cash			(43,269	)			(41,871	)			(20,594	)			(11,103	)
Cash, cash equivalents and restricted cash:
Beginning			129,184				142,212				106,509				111,444
Ending		$	85,915			$	100,341			$	85,915			$	100,341

 

 

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Entravision Communications

Page 8 of 9

Entravision Communications Corporation

Reconciliation of Consolidated EBITDA to Net income (loss) attributable to common stockholders

(In thousands; unaudited)

The most directly comparable GAAP financial measure is net income (loss) attributable to common stockholders. A reconciliation of this non-GAAP measure to net income (loss) attributable to common stockholders for each of the periods presented is as follows:

 

		Three-Month Period								Six-Month Period
		Ended June 30,								Ended June 30,
		2024				2023				2024				2023
Net income (loss) attributable to common stockholders		$	(31,680	)		$	(1,989	)		$	(80,570	)		$	52
Net income (loss) attributable to redeemable noncontrolling interest - discontinued operations			—				(12	)			(2,779	)			(12	)
Net income (loss) attributable to noncontrolling interest - discontinued operations			—				—				—				(342	)
Interest expense			4,118				4,195				8,561				8,118
Interest expense - discontinued operations			103				111				219				216
Interest income			(577	)			(720	)			(1,155	)			(1,328	)
Interest income - discontinued operations			(179	)			(317	)			(731	)			(569	)
Dividend income			—				(14	)			(10	)			(32	)
Realized gain (loss) on marketable securities			(4	)			29				109				61
(Gain) loss on debt extinguishment			51				—				91				1,556
Income tax expense			(10,664	)			(1,628	)			(14,811	)			(2,043	)
Income tax expense - discontinued operations			3,010				889				(645	)			1,535
Amortization of syndication contracts			114				120				227				240
Payments on syndication contracts			(114	)			(121	)			(229	)			(241	)
Non-cash stock-based compensation			3,287				5,968				8,734				10,021
Depreciation and amortization			4,428				3,713				9,167				7,214
Depreciation and amortization - discontinued operations			1,564				2,796				3,958				5,766
Change in fair value of contingent consideration			240				21				20				721
Change in fair value of contingent consideration - discontinued operations			(11,368	)			1,102				(12,568	)			(3,663	)
Impairment charge - discontinued operations			—				—				49,438				—
Non-recurring cash severance and restructuring charge			3,127				487				3,127				612
Other operating (gain) loss - discontinued operations			45,014				—				45,014				—
EBITDA attributable to redeemable noncontrolling interest - discontinued operations			—				(417	)			(167	)			(417	)
EBITDA attributable to noncontrolling interest - discontinued operations			—				—				—				(230	)
Consolidated EBITDA (1)		$	10,470			$	14,213			$	15,000			$	27,235

(1) Consolidated EBITDA is defined on page 2.

 

 

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Entravision Communications

Page 9 of 9

Entravision Communications Corporation

Reconciliation of Free Cash Flow to Cash Flows From Operating Activities

(In thousands; unaudited)

The most directly comparable GAAP financial measure is cash flows from operating activities. A reconciliation of this non-GAAP measure to cash flows from operating activities for each of the periods presented is as follows:

		Three-Month Period								Six-Month Period
		Ended June 30,								Ended June 30,
		2024				2023				2024				2023
Cash flows from operating activities		$	17,696			$	10,396			$	51,071			$	47,091
Cash paid for capital expenditures (2)			(1,994	)			(8,108	)			(4,737	)			(14,858	)
Free cash flow (1)		$	15,702			$	2,288			$	46,334			$	32,233

 

 

(1)

Free cash flow is defined on page 2.

(2)

Capital expenditures are not part of the consolidated statement of operations.

 

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Document And Entity Information	Aug. 08, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Aug. 08, 2024
Entity Registrant Name	ENTRAVISION COMMUNICATIONS CORP
Entity Central Index Key	0001109116
Entity Emerging Growth Company	false
Entity File Number	001-15997
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	95-4783236
Entity Address, Address Line One	2425 Olympic Boulevard
Entity Address, Address Line Two	Suite 6000 West
Entity Address, City or Town	Santa Monica
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	90404
City Area Code	310
Local Phone Number	447-3870
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Class A Common Stock
Trading Symbol	EVC
Security Exchange Name	NYSE

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