0000950170-22-002791.txt : 20220303 0000950170-22-002791.hdr.sgml : 20220303 20220303160616 ACCESSION NUMBER: 0000950170-22-002791 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 14 CONFORMED PERIOD OF REPORT: 20220303 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20220303 DATE AS OF CHANGE: 20220303 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ENTRAVISION COMMUNICATIONS CORP CENTRAL INDEX KEY: 0001109116 STANDARD INDUSTRIAL CLASSIFICATION: TELEVISION BROADCASTING STATIONS [4833] IRS NUMBER: 954783236 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-15997 FILM NUMBER: 22708664 BUSINESS ADDRESS: STREET 1: 2425 OLYMPIC BLVD STREET 2: STE 6000 WEST CITY: SANTA MONICA STATE: CA ZIP: 90404 BUSINESS PHONE: 3104473870 MAIL ADDRESS: STREET 1: 2425 OLYMPIC BLVD STREET 2: STE 6000 WEST CITY: SANTA MONICA STATE: CA ZIP: 90404 8-K 1 evc-20220303.htm 8-K 8-K
ENTRAVISION COMMUNICATIONS CORP0001109116false00011091162022-03-032022-03-03

 

 

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): March 03, 2022

 

 

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.

 

 

 


 

Item 2.02 Results of Operations and Financial Condition.

On March 3, 2022, Entravision Communications Corporation (the “Company”) issued a press release announcing its results of operations for the three- and twelve-month periods ended December 31, 2021. 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 March 3, 2022 announcing its results of operations for the three- and twelve-month periods ended December 31, 2021.

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

- 2 -


 

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 hereunto duly authorized.

 

 

 

ENTRAVISION COMMUNICATIONS CORPORATION

 

 

 

Date: March 3, 2022

 

By:

/s/ Walter F. Ulloa

 

 

 

Walter F. Ulloa

 

 

 

Chairman and Chief Executive Officer

 

- 3 -


EX-99.1 2 evc-ex99_1.htm EX-99.1 EX-99.1

Entravision Communications

Page 1 of 10

 

Exhibit 99.1

 

img19211347_0.jpg 

ENTRAVISION COMMUNICATIONS CORPORATION REPORTS

FOURTH QUARTER AND FULL YEAR 2021 RESULTS

 

SANTA MONICA, CALIFORNIA, March 3, 2022 – Entravision Communications Corporation (NYSE: EVC), a leading global advertising solutions, media and technology company, today announced financial results for the three- and twelve-month periods ended December 31, 2021.

 

Fourth Quarter and Full Year 2021 Highlights

All-time full-year record revenue and free cash flow
Net revenue up 36% and 121% over the prior-year quarter and full year, respectively
Net income attributable to common stockholders down 81% over the prior-year quarter
Net income attributable to common stockholders of $29.3 million, compared to a loss of $3.9 million in the prior full year
Consolidated adjusted EBITDA up 1% and 46% over the prior-year quarter and full year, respectively
Operating cash flow down 70% and up 3% over the prior-year quarter and full year, respectively
Free cash flow up 8% and 83% over the prior-year quarter and full year, respectively
Acquisition of remaining 49% of Cisneros Interactive
Expansion into Asia and Africa with the acquisitions of MediaDonuts and 365 Digital
Quarterly cash dividend of $0.025 per share
New $20 million share repurchase program

“2021 was a transformational year for Entravision, with revenue and free cash flow reaching record levels,” said Walter Ulloa, Chairman and Chief Executive Officer. “Our growth for the fourth quarter and full year 2021 was largely driven by the expansion of our digital business, which comprised 73% of our net revenue. Core television and audio also contributed to our overall strength during the year as we maintained our exceptional talent, programming and ratings. In addition, we saw great advancements in profitability. Full year consolidated adjusted EBITDA of $88.0 million improved 46% over 2020, demonstrating our growth and continued expense management."

Mr. Ulloa continued, “I am very pleased with the continued transformation of Entravision’s business. Through both organic growth and strategic acquisitions we have become a leading global advertising solutions, media and technology company, serving over 3,000 clients each month in over 30 countries. We connect brands and advertisers with consumers in primarily emerging growth markets around the world and are excited about this enormous opportunity. I believe we have a talented, experienced and energetic team of professionals around the world with the expertise and resources to continue to grow Entravision’s business into the future."

Quarterly Cash Dividend

The Company also announced today that its Board of Directors approved a quarterly cash dividend to shareholders of $0.025 per share on the Company's Class A, Class B and Class U common stock, in an aggregate amount of approximately $2.1 million. The quarterly dividend will be payable on March 31, 2022 to shareholders of record as of the close of business on March 16, 2022, and the common stock will trade ex-dividend on March 15, 2022. 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.

Share Repurchase Program

On March 1, 2022, the Board of Directors approved the repurchase of up to $20 million of the Company’s common stock. Under the new share repurchase program, the Company is authorized to purchase shares from time to time through open market purchases or negotiated purchases, subject to market conditions and other factors. On the same date, the Board terminated the Company’s previous share repurchase program of the Company’s common stock.

 


Entravision Communications

Page 2 of 10

 

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 9.

 

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

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2021

 

 

2020

 

 

% Change

 

 

2021

 

 

2020

 

 

% Change

 

Net revenue

 

$

233,894

 

 

$

171,683

 

 

 

36

%

 

$

760,192

 

 

$

344,026

 

 

 

121

%

Cost of revenue - digital (1)

 

 

148,399

 

 

 

85,326

 

 

 

74

%

 

 

466,517

 

 

 

106,928

 

 

 

336

%

Operating expenses (2)

 

 

48,065

 

 

 

45,945

 

 

 

5

%

 

 

173,034

 

 

 

153,313

 

 

 

13

%

Corporate expenses (3)

 

 

11,237

 

 

 

9,296

 

 

 

21

%

 

 

32,993

 

 

 

27,807

 

 

 

19

%

Foreign currency (gain) loss

 

 

54

 

 

 

(1,725

)

 

*

 

 

 

508

 

 

 

(1,052

)

 

*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated adjusted EBITDA (4)

 

 

32,856

 

 

 

32,646

 

 

 

1

%

 

 

88,033

 

 

 

60,419

 

 

 

46

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Free cash flow (5)

 

$

30,875

 

 

$

28,641

 

 

 

8

%

 

$

78,706

 

 

$

43,029

 

 

 

83

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

3,868

 

 

$

22,851

 

 

 

(83

)%

 

$

35,230

 

 

$

(1,387

)

 

*

 

Net (income) loss attributable to redeemable noncontrolling interest

 

$

-

 

 

$

(2,523

)

 

*

 

 

$

(5,938

)

 

$

(2,523

)

 

 

135

%

Net income (loss) attributable to common stockholders

 

$

3,868

 

 

$

20,328

 

 

 

(81

)%

 

$

29,292

 

 

$

(3,910

)

 

*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share attributable to common stockholders, basic

 

$

0.05

 

 

$

0.24

 

 

 

(79

)%

 

$

0.34

 

 

$

(0.05

)

 

*

 

Net income (loss) per share attributable to common stockholders, diluted

 

$

0.04

 

 

$

0.24

 

 

 

(83

)%

 

$

0.33

 

 

$

(0.05

)

 

*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic

 

 

85,579,385

 

 

 

84,297,592

 

 

 

 

 

 

85,301,603

 

 

 

84,231,212

 

 

 

 

Weighted average common shares outstanding, diluted

 

 

88,556,177

 

 

 

85,985,630

 

 

 

 

 

 

87,910,603

 

 

 

84,231,212

 

 

 

 

 

(1)
Consists primarily of the costs of online media acquired from third-party publishers. Media cost is classified as cost of revenue in the period in which the corresponding revenue is recognized.
(2)
Operating expenses includes direct operating and selling, general and administrative expenses. Included in operating expenses are $2.3 million and $0.9 million of non-cash stock-based compensation for the three-month periods ended December 31, 2021 and 2020, respectively, and $3.2 million and $1.2 million of non-cash stock-based compensation for the twelve-month periods ended December 31, 2021 and 2020, respectively.
(3)
Corporate expenses include $4.0 million and $1.9 million of non-cash stock-based compensation for the three-month periods ended December 31, 2021 and 2020, respectively, and $6.4 million and $3.9 million of non-cash stock-based compensation for the twelve-month periods ended December 31, 2021 and 2020, respectively.
(4)
Consolidated adjusted EBITDA means net income (loss) plus gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation included in operating and corporate expenses, net interest expense, other operating gain (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from the Federal Communications Commission, or FCC, spectrum incentive auction less related expenses, expenses associated with investments, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings. We use the term consolidated adjusted EBITDA because that measure is defined in the agreement governing our current credit facility (“the 2017 Credit Facility”) and does not include gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation, net interest expense, other income (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from FCC spectrum incentive auction less related expenses, expenses associated with investments, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings.
(5)
Free cash flow is defined as consolidated adjusted EBITDA less cash paid for income taxes, net interest expense, capital expenditures and non-recurring cash expenses plus dividend income, and other operating gain (loss). Net interest expense is defined as interest expense, less non-cash interest expense relating to amortization of debt finance costs, and less interest income.

 

 


Entravision Communications

Page 3 of 10

 

 

Unaudited Financial Results (In thousands)

 

 

Three Months Ended

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

 

% Change

 

Net revenue

 

$

233,894

 

 

$

171,683

 

 

 

36

%

Cost of revenue - digital (1)

 

 

148,399

 

 

 

85,326

 

 

 

74

%

Operating expenses (1)

 

 

48,065

 

 

 

45,945

 

 

 

5

%

Corporate expenses (1)

 

 

11,237

 

 

 

9,296

 

 

 

21

%

Depreciation and amortization

 

 

6,261

 

 

 

4,963

 

 

 

26

%

Change in fair value of contingent consideration

 

 

8,224

 

 

 

 

 

*

 

Impairment charge

 

 

1,419

 

 

 

200

 

 

 

610

%

Foreign currency (gain) loss

 

 

54

 

 

 

(1,725

)

 

*

 

Other operating (gain) loss

 

 

(2,131

)

 

 

(1,346

)

 

 

58

%

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

12,366

 

 

 

29,024

 

 

 

(57

)%

Interest expense, net

 

 

(1,723

)

 

 

(1,474

)

 

 

17

%

Dividend income

 

 

2

 

 

 

2

 

 

 

0

%

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

10,645

 

 

 

27,552

 

 

 

(61

)%

 

 

 

 

 

 

 

 

 

 

Income tax (expense) benefit

 

 

(6,777

)

 

 

(4,701

)

 

 

44

%

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

 

3,868

 

 

 

22,851

 

 

 

(83

)%

Net (income) loss attributable to redeemable noncontrolling interest

 

 

-

 

 

 

(2,523

)

 

*

 

Net income (loss) attributable to common stockholders

 

$

3,868

 

 

$

20,328

 

 

 

(81

)%

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

Net revenue in the fourth quarter of 2021 totaled $233.9 million, up 36% from $171.7 million in the prior-year period. Of the overall increase, approximately $72.6 million was attributable to our digital segment and was primarily due to advertising revenue resulting from our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which became wholly-owned during the third quarter of 2021, and due to advertising revenue resulting from our acquisitions of MediaDonuts and 365 Digital during the third and fourth quarters of 2021, respectively. The overall increase was partially offset by a decrease of approximately $10.4 million that was attributable to our television and audio segments primarily due to decreases in political advertising revenue, partially offset by increases in local and national advertising revenue.

Cost of revenue in the fourth quarter of 2021 totaled $148.4 million compared to $85.3 million in the prior-year period. The increase was primarily due to increased costs of revenue following our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which became wholly-owned during the third quarter of 2021, and due to our acquisitions of MediaDonuts and 365 Digital during the third and fourth quarters of 2021, respectively.

Operating expenses in the fourth quarter of 2021 totaled $48.1 million, up 5% from $45.9 million in the prior-year period. Of the overall increase, approximately $3.3 million was attributable to our digital segment and was primarily due to our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which became wholly-owned during the third quarter of 2021, and due to operating expenses resulting from our acquisitions of MediaDonuts and 365 Digital during the third and fourth quarters of 2021, respectively. The overall increase was partially offset by decreases in our television and audio segments primarily due to a decrease in expenses associated with the decrease in advertising revenue, and decreases in bad debt and salary expense associated with furloughs and layoffs that occurred in 2020 because of the COVID-19 pandemic.

Corporate expenses in the fourth quarter of 2021 totaled $11.2 million, up 21% from $9.3 million in the prior-year period. The increase was primarily due to an increase in non-cash stock-based compensation expense.

 

 

 

 

 

 


Entravision Communications

Page 4 of 10

 

Unaudited Financial Results (In thousands)

 

 

Twelve Months Ended

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

 

% Change

 

Net revenue

 

$

760,192

 

 

$

344,026

 

 

 

121

%

Cost of revenue - digital (1)

 

 

466,517

 

 

 

106,928

 

 

 

336

%

Operating expenses (1)

 

 

173,034

 

 

 

153,313

 

 

 

13

%

Corporate expenses (1)

 

 

32,993

 

 

 

27,807

 

 

 

19

%

Depreciation and amortization

 

 

22,420

 

 

 

17,282

 

 

 

30

%

Change in fair value of contingent consideration

 

 

8,224

 

 

 

 

 

*

 

Impairment charge

 

 

3,023

 

 

 

40,035

 

 

 

(92

)%

Foreign currency (gain) loss

 

 

508

 

 

 

(1,052

)

 

*

 

Other operating (gain) loss

 

 

(6,998

)

 

 

(6,895

)

 

 

1

%

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

60,471

 

 

 

6,608

 

 

 

815

%

Interest expense, net

 

 

(6,775

)

 

 

(6,517

)

 

 

4

%

Dividend income

 

 

213

 

 

 

28

 

 

 

661

%

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

53,909

 

 

 

119

 

 

*

 

Income tax (expense) benefit

 

 

(18,679

)

 

 

(1,506

)

 

 

1140

%

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

 

35,230

 

 

 

(1,387

)

 

*

 

Net (income) loss attributable to redeemable noncontrolling interest

 

 

(5,938

)

 

 

(2,523

)

 

 

135

%

Net income (loss) attributable to common stockholders

 

$

29,292

 

 

$

(3,910

)

 

*

 

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

Net revenue totaled $760.2 million for the year ended December 31, 2021, up 121% from $344.0 million for the year ended December 31, 2020. Of the overall increase, approximately $412.0 million was attributable to our digital segment and was primarily due to advertising revenue resulting from our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which became wholly-owned during the third quarter of 2021, and due to advertising revenue resulting from our acquisitions of MediaDonuts and 365 Digital during the third and fourth quarters of 2021, respectively. In addition, of the overall increase, approximately $11.7 million was attributable to our audio segment primarily due to increases in local and national advertising revenue, partially offset by a decrease in political advertising revenue. The overall increase was partially offset by a decrease of approximately $7.6 million attributable to our television segment, primarily due a decrease in political advertising revenue, partially offset by increases in local and national advertising revenue, revenue from spectrum usage rights and retransmission consent revenue.

 

Cost of revenue in our digital segment totaled $466.5 million for the year ended December 31, 2021 compared to $106.9 million for the year ended December 31, 2020. The increase was primarily due to increased costs of revenue following our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which became wholly-owned during the third quarter of 2021, and due to our acquisitions of MediaDonuts and 365 Digital during the third and fourth quarters of 2021, respectively.

 

Operating expenses totaled $173.0 million for the year ended December 31, 2021, up 13% from $153.3 million for the year ended December 31, 2020. Of the overall increase, approximately $21.0 million was attributable to our digital segment and was primarily due to our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which became wholly-owned during the third quarter of 2021, and due to operating expenses resulting from our acquisitions of MediaDonuts and 365 Digital during the third and fourth quarters of 2021, respectively. The overall increase was partially offset by decreases in our television and audio segments primarily due to decreases in bad debt and salary expense associated with furloughs and layoffs that occurred in 2020 because of the COVID-19 pandemic.

 

Corporate expenses totaled $33.0 million for the year ended December 31, 2021, up 19% from $27.8 million for the year ended December 31, 2020. The increase was primarily due to increases in salaries, non-cash stock-based compensation expense and audit fees.

 

 

 

 

 

 


Entravision Communications

Page 5 of 10

 

Balance Sheet and Related Metrics

 

Cash and marketable securities as of December 31, 2021 totaled approximately $185.1 million. Total debt was $212.3 million. Net of $75 million of cash and marketable securities, total leverage as defined in the Company’s credit agreement was 1.6 times as of December 31, 2021. Net of total cash and marketable securities, total leverage was 0.3 times.

 

Unaudited Segment Results (In thousands)

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

 

2021

 

 

 

2020

 

 

% Change

 

 

 

2021

 

 

 

2020

 

 

% Change

 

Net Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Digital

 

$

177,512

 

 

$

104,950

 

 

 

69

%

 

$

555,338

 

 

$

143,309

 

 

 

288

%

Television

 

 

40,241

 

 

 

50,516

 

 

 

(20

)%

 

 

146,839

 

 

 

154,456

 

 

 

(5

)%

Audio

 

 

16,141

 

 

 

16,217

 

 

 

(0

)%

 

 

58,015

 

 

 

46,261

 

 

 

25

%

Total

 

$

233,894

 

 

$

171,683

 

 

 

36

%

 

$

760,192

 

 

$

344,026

 

 

 

121

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Revenue - Digital (1)

 

$

148,399

 

 

$

85,326

 

 

 

74

%

 

$

466,517

 

 

$

106,928

 

 

 

336

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Digital

 

$

15,540

 

 

$

12,228

 

 

 

27

%

 

$

51,604

 

 

$

30,631

 

 

 

68

%

Television

 

 

21,849

 

 

 

22,422

 

 

 

(3

)%

 

 

81,397

 

 

 

80,893

 

 

 

1

%

Audio

 

 

10,676

 

 

 

11,295

 

 

 

(5

)%

 

 

40,033

 

 

 

41,789

 

 

 

(4

)%

Total

 

$

48,065

 

 

$

45,945

 

 

 

5

%

 

$

173,034

 

 

$

153,313

 

 

 

13

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Expenses (1)

 

$

11,237

 

 

$

9,296

 

 

 

21

%

 

$

32,993

 

 

$

27,807

 

 

 

19

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency (gain) loss

 

$

54

 

 

$

(1,725

)

 

*

 

 

$

508

 

 

$

(1,052

)

 

*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated adjusted EBITDA (1)

 

$

32,856

 

 

$

32,646

 

 

 

1

%

 

$

88,033

 

 

$

60,419

 

 

 

46

%

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

Notice of Conference Call

Entravision Communications Corporation will hold a conference call to discuss its fourth quarter and full year 2021 results on Thursday, March 3, 2022 at 4:30 p.m. Eastern Time. To access the conference call, please dial (877) 407-9716 (U.S.) or (201) 493-6779 (Int’l) ten minutes prior to the start time and reference Conference ID number 13726389. 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 leading global advertising solutions, media and technology company connecting brands to consumers. Our dynamic portfolio includes digital, television and audio offerings. Digital, our largest revenue segment, is comprised of four business units: our digital sales representation business; Smadex, our programmatic ad purchasing platform; our branding and mobile performance solutions business; and our digital audio business. Through our digital sales representation business, we connect global media companies such as Meta, Twitter, TikTok and Spotify with advertisers in primarily emerging growth markets worldwide. Smadex is our mobile-first demand side platform, enabling advertisers to execute performance campaigns using machine learning. We also offer a branding and mobile performance solutions business, which provides managed services to advertisers looking to connect with global consumers, primarily on mobile devices, and our digital audio business provides digital audio advertising solutions for advertisers in the Americas. In addition to digital, Entravision has 50 television stations and is the largest affiliate group of the Univision and UniMás television networks. Entravision also manages 46 primarily Spanish-language radio stations that feature nationally recognized, Emmy award-winning talent. Shares of Entravision Class A Common Stock trade on the NYSE under ticker: EVC. Learn more about our offerings at entravision.com or connect with us on LinkedIn and Facebook.

 

 

 

 


Entravision Communications

Page 6 of 10

 

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:

 

Christopher T. Young

 

Kimberly Esterkin

Chief Financial Officer

 

ADDO Investor Relations

Entravision Communications Corporation

 

310-829-5400

310-447-3870

 

evc@addo.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

# # #

(Financial Table Follows)

 

 


Entravision Communications

Page 7 of 10

 

 

Entravision Communications Corporation

Consolidated Statements of Operations

(In thousands, except share and per share data)

(Unaudited)

 

 

 

Three-Month Period

 

 

Twelve-Month Period

 

 

 

Ended December 31,

 

 

Ended December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Net revenue

 

$

233,894

 

 

$

171,683

 

 

$

760,192

 

 

$

344,026

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue - digital

 

 

148,399

 

 

 

85,326

 

 

 

466,517

 

 

 

106,928

 

Direct operating expenses

 

 

32,969

 

 

 

31,912

 

 

 

116,449

 

 

 

104,909

 

Selling, general and administrative expenses

 

 

15,096

 

 

 

14,033

 

 

 

56,585

 

 

 

48,404

 

Corporate expenses

 

 

11,237

 

 

 

9,296

 

 

 

32,993

 

 

 

27,807

 

Depreciation and amortization

 

 

6,261

 

 

 

4,963

 

 

 

22,420

 

 

 

17,282

 

Change in fair value of contingent consideration

 

 

8,224

 

 

 

 

 

 

8,224

 

 

 

 

Impairment charge

 

 

1,419

 

 

 

200

 

 

 

3,023

 

 

 

40,035

 

Foreign currency (gain) loss

 

 

54

 

 

 

(1,725

)

 

 

508

 

 

 

(1,052

)

Other operating (gain) loss

 

 

(2,131

)

 

 

(1,346

)

 

 

(6,998

)

 

 

(6,895

)

 

 

 

221,528

 

 

 

142,659

 

 

 

699,721

 

 

 

337,418

 

Operating income (loss)

 

 

12,366

 

 

 

29,024

 

 

 

60,471

 

 

 

6,608

 

Interest expense

 

 

(1,733

)

 

 

(1,592

)

 

 

(7,020

)

 

 

(8,265

)

Interest income

 

 

10

 

 

 

118

 

 

 

245

 

 

 

1,748

 

Dividend income

 

 

2

 

 

 

2

 

 

 

213

 

 

 

28

 

Income before income taxes

 

 

10,645

 

 

 

27,552

 

 

 

53,909

 

 

 

119

 

Income tax (expense) benefit

 

 

(6,777

)

 

 

(4,701

)

 

 

(18,679

)

 

 

(1,506

)

Net income (loss)

 

 

3,868

 

 

 

22,851

 

 

 

35,230

 

 

 

(1,387

)

Net (income) loss attributable to redeemable noncontrolling interest

 

 

-

 

 

 

(2,523

)

 

 

(5,938

)

 

 

(2,523

)

Net income (loss) attributable to common stockholders

 

$

3,868

 

 

$

20,328

 

 

$

29,292

 

 

$

(3,910

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share attributable to common stockholders, basic

 

$

0.05

 

 

$

0.24

 

 

$

0.34

 

 

$

(0.05

)

Net income (loss) per share attributable to common stockholders, diluted

 

$

0.04

 

 

$

0.24

 

 

$

0.33

 

 

$

(0.05

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share, basic and diluted

 

$

0.03

 

 

$

0.03

 

 

$

0.10

 

 

$

0.13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic

 

 

85,579,385

 

 

 

84,297,592

 

 

 

85,301,603

 

 

 

84,231,212

 

Weighted average common shares outstanding, diluted

 

 

88,556,177

 

 

 

85,985,630

 

 

 

87,910,603

 

 

 

84,231,212

 

 

 

 

 


Entravision Communications

Page 8 of 10

 

Entravision Communications Corporation

Consolidated Statements of Cash Flows

(In thousands; unaudited)

 

 

 

Three-Month Period

 

 

Twelve-Month Period

 

 

 

Ended December 31,

 

 

Ended December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

3,868

 

 

$

22,851

 

 

$

35,230

 

 

$

(1,387

)

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

6,261

 

 

 

4,963

 

 

 

22,420

 

 

 

17,282

 

Impairment charge

 

 

1,419

 

 

 

200

 

 

 

3,023

 

 

 

40,035

 

Deferred income taxes

 

 

6,206

 

 

 

2,519

 

 

 

14,554

 

 

 

(6,225

)

Non-cash interest

 

 

153

 

 

 

158

 

 

 

604

 

 

 

649

 

Amortization of syndication contracts

 

 

118

 

 

 

121

 

 

 

475

 

 

 

504

 

Payments on syndication contracts

 

 

(119

)

 

 

(133

)

 

 

(473

)

 

 

(458

)

Non-cash stock-based compensation

 

 

6,295

 

 

 

2,717

 

 

 

9,595

 

 

 

5,125

 

(Gain) loss on disposal of property and equipment

 

 

(2,007

)

 

 

36

 

 

 

(4,629

)

 

 

(731

)

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

(Increase) decrease in trade receivables, net

 

 

(33,215

)

 

 

(34,385

)

 

 

(49,109

)

 

 

(20,100

)

(Increase) decrease in prepaid expenses and other current assets

 

 

4,515

 

 

 

4,813

 

 

 

6,782

 

 

 

11,526

 

Increase (decrease) in accounts payable, accrued expenses and other liabilities

 

 

17,979

 

 

 

33,872

 

 

 

26,781

 

 

 

17,229

 

Net cash provided by operating activities

 

 

11,473

 

 

 

37,732

 

 

 

65,253

 

 

 

63,449

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from sale of property and equipment and intangibles

 

 

917

 

 

 

 

 

 

10,348

 

 

 

5,089

 

Purchases of property and equipment

 

 

(1,550

)

 

 

(1,319

)

 

 

(5,819

)

 

 

(9,060

)

Purchases of intangibles

 

 

 

 

 

 

 

 

 

 

 

(158

)

Purchase of a businesses, net of cash acquired

 

 

(1,413

)

 

 

(21,261

)

 

 

(14,260

)

 

 

(21,261

)

Proceeds from marketable securities

 

 

 

 

 

25,000

 

 

 

27,800

 

 

 

63,480

 

Purchases of investments

 

 

 

 

 

 

 

 

(800

)

 

 

 

Net cash provided by (used in) investing activities

 

 

(2,046

)

 

 

2,420

 

 

 

17,269

 

 

 

38,090

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from stock option exercises

 

 

2

 

 

 

 

 

 

416

 

 

 

 

Tax payments related to shares withheld for share-based compensation plans

 

 

(4,201

)

 

 

(1,411

)

 

 

(4,729

)

 

 

(1,426

)

Payments on long-term debt

 

 

(750

)

 

 

(750

)

 

 

(3,000

)

 

 

(3,000

)

Dividends paid

 

 

(2,136

)

 

 

(2,103

)

 

 

(8,531

)

 

 

(10,531

)

Repurchase of Class A common stock

 

 

 

 

 

 

 

 

 

 

 

(525

)

Principal payments under finance lease obligation

 

 

(126

)

 

 

 

 

 

(126

)

 

 

 

Payments of capitalized debt offering and issuance costs

 

 

 

 

 

 

 

 

(604

)

 

 

 

Net cash used in financing activities

 

 

(7,211

)

 

 

(4,264

)

 

 

(16,574

)

 

 

(15,482

)

Effect of exchange rates on cash, cash equivalents and restricted cash

 

 

(13

)

 

 

4

 

 

 

(16

)

 

 

(3

)

Net increase (decrease) in cash, cash equivalents and restricted cash

 

 

2,203

 

 

 

35,892

 

 

 

65,932

 

 

 

86,054

 

Cash, cash equivalents and restricted cash:

 

 

 

 

 

 

 

 

 

 

 

 

Beginning

 

 

183,640

 

 

 

84,019

 

 

 

119,911

 

 

 

33,857

 

Ending

 

$

185,843

 

 

$

119,911

 

 

$

185,843

 

 

$

119,911

 

 

 

 

 


Entravision Communications

Page 9 of 10

 

Entravision Communications Corporation

Reconciliation of Consolidated Adjusted EBITDA to Cash Flows From Operating Activities

(In thousands; unaudited)

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

 

 

 

Three-Month Period

 

 

Twelve-Month Period

 

 

 

Ended December 31,

 

 

Ended December 31,

 

 

 

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

Consolidated adjusted EBITDA (1)

 

$

32,856

 

 

$

32,646

 

 

$

88,033

 

 

$

60,419

 

EBITDA attributable to redeemable noncontrolling interest

 

 

 

 

 

3,436

 

 

 

9,127

 

 

 

3,436

 

Interest expense

 

 

(1,733

)

 

 

(1,592

)

 

 

(7,020

)

 

 

(8,265

)

Interest income

 

 

10

 

 

 

118

 

 

 

245

 

 

 

1,748

 

Income tax (expense) benefit

 

 

(6,777

)

 

 

(4,701

)

 

 

(18,679

)

 

 

(1,506

)

Amortization of syndication contracts

 

 

(118

)

 

 

(121

)

 

 

(475

)

 

 

(504

)

Payments on syndication contracts

 

 

119

 

 

 

133

 

 

 

473

 

 

 

458

 

Non-cash stock-based compensation included in direct operating

 

 

 

 

 

 

 

 

 

 

 

 

 expenses

 

 

(2,263

)

 

 

(865

)

 

 

(3,234

)

 

 

(1,247

)

Non-cash stock-based compensation included in corporate expenses

 

 

(4,032

)

 

 

(1,852

)

 

 

(6,361

)

 

 

(3,878

)

Depreciation and amortization

 

 

(6,261

)

 

 

(4,963

)

 

 

(22,420

)

 

 

(17,282

)

Change in fair value of contingent consideration

 

 

(8,224

)

 

 

 

 

 

(8,224

)

 

 

-

 

Non-recurring severance charge

 

 

(423

)

 

 

(536

)

 

 

(423

)

 

 

(1,654

)

Dividend income

 

 

2

 

 

 

2

 

 

 

213

 

 

 

28

 

Other operating gain (loss)

 

 

2,131

 

 

 

1,346

 

 

 

6,998

 

 

 

6,895

 

Impairment charge

 

 

(1,419

)

 

 

(200

)

 

 

(3,023

)

 

 

(40,035

)

Net (income) loss attributable to redeemable noncontrolling interest

 

 

 

 

 

(2,523

)

 

 

(5,938

)

 

 

(2,523

)

Net income (loss) attributable to common stockholders

 

 

3,868

 

 

 

20,328

 

 

 

29,292

 

 

 

(3,910

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

6,261

 

 

 

4,963

 

 

 

22,420

 

 

 

17,282

 

Impairment charge

 

 

1,419

 

 

 

200

 

 

 

3,023

 

 

 

40,035

 

Deferred income taxes

 

 

6,206

 

 

 

2,519

 

 

 

14,554

 

 

 

(6,225

)

Amortization of debt issuance costs

 

 

153

 

 

 

158

 

 

 

604

 

 

 

649

 

Amortization of syndication contracts

 

 

118

 

 

 

121

 

 

 

475

 

 

 

504

 

Payments on syndication contracts

 

 

(119

)

 

 

(133

)

 

 

(473

)

 

 

(458

)

Non-cash stock-based compensation

 

 

6,295

 

 

 

2,717

 

 

 

9,595

 

 

 

5,125

 

(Gain) loss on disposal of property and equipment

 

 

(2,007

)

 

 

36

 

 

 

(4,629

)

 

 

(731

)

Net (income) loss attributable to redeemable noncontrolling interest

 

 

 

 

 

2,523

 

 

 

5,938

 

 

 

2,523

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

(Increase) decrease in accounts receivable

 

 

(33,215

)

 

 

(34,385

)

 

 

(49,109

)

 

 

(20,100

)

(Increase) decrease in prepaid expenses and other assets

 

 

4,515

 

 

 

4,813

 

 

 

6,782

 

 

 

11,526

 

Increase (decrease) in accounts payable, accrued expenses and other liabilities

 

 

17,979

 

 

 

33,872

 

 

 

26,781

 

 

 

17,229

 

Net cash provided by (used in ) operating activities

 

$

11,473

 

 

$

37,732

 

 

$

65,253

 

 

$

63,449

 

 

(1) Consolidated adjusted EBITDA is defined on page 2.

 

 

 

 


Entravision Communications

Page 10 of 10

 

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

 

 

Twelve-Month Period

 

 

 

Ended December 31,

 

 

Ended December 31,

 

 

 

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

Consolidated adjusted EBITDA (1)

 

$

32,856

 

 

$

32,646

 

 

$

88,033

 

 

$

60,419

 

Net, cash interest expense (1)

 

 

(1,570

)

 

 

(1,316

)

 

 

(6,171

)

 

 

(5,868

)

Dividend income

 

 

2

 

 

 

2

 

 

 

213

 

 

 

28

 

Cash paid for income taxes

 

 

(571

)

 

 

(2,182

)

 

 

(4,125

)

 

 

(7,731

)

Capital expenditures (2)

 

 

(1,550

)

 

 

(1,319

)

 

 

(5,819

)

 

 

(9,060

)

Other operating gain (loss)

 

 

2,131

 

 

 

1,346

 

 

 

6,998

 

 

 

6,895

 

Non-recurring cash severance charge

 

 

(423

)

 

 

(536

)

 

 

(423

)

 

 

(1,654

)

Free cash flow (1)

 

 

30,875

 

 

 

28,641

 

 

 

78,706

 

 

 

43,029

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures (2)

 

 

1,550

 

 

 

1,319

 

 

 

5,819

 

 

 

9,060

 

EBITDA attributable to redeemable noncontrolling interest

 

 

 

 

 

3,436

 

 

 

9,127

 

 

 

3,436

 

Change in fair value of contingent consideration

 

 

(8,224

)

 

 

 

 

 

(8,224

)

 

 

 

(Gain) loss on disposal of property and equipment

 

 

(2,007

)

 

 

36

 

 

 

(4,629

)

 

 

(731

)

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

(Increase) decrease in accounts receivable

 

 

(33,215

)

 

 

(34,385

)

 

 

(49,109

)

 

 

(20,100

)

(Increase) decrease in prepaid expenses and other assets

 

 

4,515

 

 

 

4,813

 

 

 

6,782

 

 

 

11,526

 

Increase (decrease) in accounts payable, accrued expenses and other liabilities

 

 

17,979

 

 

 

33,872

 

 

 

26,781

 

 

 

17,229

 

Cash Flows From Operating Activities

 

$

11,473

 

 

$

37,732

 

 

$

65,253

 

 

$

63,449

 

 

(1)
Consolidated adjusted EBITDA, net interest expense, and free cash flow are defined on page 2.
(2)
Capital expenditures are not part of the consolidated statement of operations.

 


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Document And Entity Information
Mar. 03, 2022
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Mar. 03, 2022
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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