0000950170-24-025934.txt : 20240305 0000950170-24-025934.hdr.sgml : 20240305 20240305161517 ACCESSION NUMBER: 0000950170-24-025934 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 14 CONFORMED PERIOD OF REPORT: 20240304 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20240305 DATE AS OF CHANGE: 20240305 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ENTRAVISION COMMUNICATIONS CORP CENTRAL INDEX KEY: 0001109116 STANDARD INDUSTRIAL CLASSIFICATION: TELEVISION BROADCASTING STATIONS [4833] ORGANIZATION NAME: 06 Technology 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: 24720571 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-20240304.htm 8-K 8-K
0001109116falseENTRAVISION COMMUNICATIONS CORP00011091162024-03-042024-03-04

 

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 04, 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.

 


Item 2.02 Results of Operations and Financial Condition.

On March 5, 2024, Entravision Communications Corporation (the “Company”) issued a press release announcing its results of operations for the three- and twelve-month periods ended December 31, 2023. 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 8.01 Other Events.

On March 4, 2024, the Company received a communication from Meta Platforms, Inc. ("Meta") that it intends to wind down its authorized sales partner ("ASP") program globally and end its relationship with all of its ASPs, including the Company, by July 1, 2024. For full year 2023, Meta's ASP program represented $586.4 million of the Company’s $1,106.9 million of total consolidated revenue. The Company has initiated a review of its operating strategy and cost structure and will provide an update on associated plans as soon as practicable.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

99.1

Press release issued by Entravision Communications Corporation on March 5, 2024 announcing its results of operations for the three- and twelve-month periods ended December 31, 2023.

104

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

 


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:

March 5, 2024

By:

/s/ Michael J. Christenson

 

 

 

Michael J. Christenson
Chief Executive Officer

 


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

Entravision Communications

Page 1 of 9

 

Exhibit 99.1

 

img19211347_0.jpg 

ENTRAVISION COMMUNICATIONS CORPORATION REPORTS

FOURTH QUARTER AND FULL YEAR 2023 RESULTS

Provides Update on Digital Commercial Partnership with Meta Platforms

Declares Quarterly Cash Dividend of $0.05 Per Share Payable on March 29, 2024

Company to Cancel Today’s Conference Call

SANTA MONICA, CALIFORNIA, March 5, 2024 – 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, 2023, and provided an update on its digital commercial partnership with Meta Platforms. Entravision is canceling the conference call scheduled for 5 p.m. Eastern Time today.

Digital Commercial Partnerships Business Update

Through Entravision Global Partners, our digital commercial partnerships business, the Company acts as an intermediary between primarily global media companies and advertisers. These global media companies include Meta, for whom the Company acts as an Authorized Sales Partner (ASP), ByteDance, X Corp., Spotify, Snap and Pinterest, as well as other media companies, in 31 countries throughout the world.

On March 4, 2024, the Company received a communication from Meta that it intends to wind down its ASP program globally and end its relationship with all of its ASPs, including Entravision, by July 1, 2024. For full year 2023, the Company estimates Meta's ASP program represented approximately $23.8 million of the Company’s $57.7 million total consolidated EBITDA and $586.4 million of the Company’s $1,106.9 million of total consolidated revenue. Entravision has initiated a review of its operating strategy and cost structure and will provide an update on associated plans as soon as practicable.

As of December 31, 2023, Entravision reported $118.9 million of cash and marketable securities. The Company is in compliance with all debt covenants under its current credit facility and, except for quarterly principal scheduled payments, has no maturities under that facility until March 17, 2028.

"While we are disappointed in Meta’s decision, we are confident in Entravision’s long-term opportunities given the strength of our advertising and marketing platforms and the need for our solutions globally. We are conducting an extensive review of our strategy and cost structure to reinforce our operating foundation and ensure we are best positioned to capitalize on Entravision’s global, market leading advertising, media and technology solutions. Our balance sheet is solid with a strong cash position to support the business as we navigate these changes,” said Michael Christenson, Chief Executive Officer.

 


Entravision Communications

Page 2 of 9

 

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

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2023

 

 

2022

 

 

% Change

 

 

2023

 

 

2022

 

 

% Change

 

Net revenue

 

$

320,063

 

 

$

296,328

 

 

 

8

%

 

$

1,106,867

 

 

$

956,209

 

 

 

16

%

Cost of revenue - digital (1)

 

 

237,520

 

 

 

191,965

 

 

 

24

%

 

 

800,401

 

 

 

623,916

 

 

 

28

%

Operating expenses (2)

 

 

57,380

 

 

 

57,249

 

 

 

0

%

 

 

220,449

 

 

 

197,776

 

 

 

11

%

Corporate expenses (3)

 

 

14,458

 

 

 

22,635

 

 

 

(36

)%

 

 

50,294

 

 

 

49,404

 

 

 

2

%

Foreign currency (gain) loss

 

 

611

 

 

 

860

 

 

 

(29

)%

 

 

900

 

 

 

2,972

 

 

 

(70

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated EBITDA (4)

 

 

16,246

 

 

 

36,524

 

 

 

(56

)%

 

 

57,666

 

 

 

103,090

 

 

 

(44

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Free cash flow (5)

 

$

(2,076

)

 

$

19,299

 

 

*

 

 

$

7,394

 

 

$

63,325

 

 

 

(88

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(18,051

)

 

$

725

 

 

*

 

 

$

(15,621

)

 

$

20,169

 

 

*

 

Net (income) loss attributable to redeemable noncontrolling interest

 

$

(157

)

 

$

-

 

 

*

 

 

$

(158

)

 

$

-

 

 

*

 

Net (income) loss attributable to noncontrolling interest

 

$

-

 

 

$

(2,353

)

 

 

(100

)%

 

$

342

 

 

$

(2,050

)

 

*

 

Net income (loss) attributable to common stockholders

 

$

(18,208

)

 

$

(1,628

)

 

 

1018

%

 

$

(15,437

)

 

$

18,119

 

 

*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

(0.21

)

 

$

(0.02

)

 

 

950

%

 

$

(0.18

)

 

$

0.21

 

 

*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic

 

 

88,193,240

 

 

 

85,158,189

 

 

 

 

 

 

87,901,938

 

 

 

85,391,163

 

 

 

 

Weighted average common shares outstanding, diluted

 

 

88,193,240

 

 

 

85,158,189

 

 

 

 

 

 

87,901,938

 

 

 

87,769,762

 

 

 

 

(1)
Consists primarily of the costs of online media acquired from third-party publishers. Media cost is classified as cost of revenue in the period in which the corresponding revenue is recognized.
(2)
Operating expenses include direct operating and selling, general and administrative expenses. Included in operating expenses are $2.3 million and $2.8 million of non-cash stock-based compensation for the three-month periods ended December 31, 2023 and 2022, respectively, and $9.5 million and $5.7 million of non-cash stock-based compensation for the twelve-month periods ended December 31, 2023 and 2022, respectively.
(3)
Corporate expenses include $4.4 million and $9.2 million of non-cash stock-based compensation for the three-month periods ended December 31, 2023 and 2022, respectively, and $14.2 million and $14.3 million of non-cash stock-based compensation for the twelve-month periods ended December 31, 2023 and 2022, respectively.
(4)
Consolidated EBITDA means net income (loss) plus gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation included in operating and corporate expenses, net interest expense, other operating gain (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from the Federal Communications Commission, or FCC, spectrum incentive auction less related expenses, expenses associated with investments, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings. We use the term consolidated EBITDA because that measure is defined in our 2017 Credit Agreement and 2023 Credit Agreement, and does not include gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation, net interest expense, other income (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from FCC spectrum incentive auction less related expenses, expenses associated with investments, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings.
(5)
Free cash flow is defined as consolidated EBITDA less cash paid for income taxes, net interest expense, capital expenditures (less amounts reimbursed by landlord) and non-recurring cash expenses plus dividend income, and other operating gain (loss). Net interest expense is defined as interest expense, less non-cash interest expense relating to amortization of debt finance costs, and less interest income.

Net revenue for the fourth quarter and full year of 2023 increased primarily due to an increase in advertising revenue from our digital commercial partners business, and from various acquisitions, which did not fully contribute to our financial results in the comparable prior period. The increase was partially offset by a decrease in political advertising revenue in our television and audio segments.

Cost of revenue for the fourth quarter and full year of 2023 increased primarily due to the increase in digital advertising revenue.

Operating expenses for the fourth quarter of 2023 remained constant.

 


Entravision Communications

Page 3 of 9

 

Operating expenses for the year ended December 31, 2023 increased primarily due to expenses associated with the increase in advertising revenue, increases in salary expense and non-cash stock-based compensation, rent expense, and expenses from various acquisitions, which did not fully contribute to our financial results in the comparable prior period.

Corporate expenses for the fourth quarter of 2023 decreased primarily due to non-recurring severance expense incurred in the fourth quarter of 2022 upon the passing of our former Chief Executive Officer, and due to a decrease in bonus expense.

Corporate expenses for the year ended December 31, 2023 increased primarily due to professional service fees, audit fees and rent expense, partially offset by a decrease in severance expense incurred in 2022 upon the passing of our former Chief Executive Officer, and due to a decrease in bonus expense.

Quarterly Cash Dividend

The Company announced today that its Board of Directors approved a quarterly cash dividend to shareholders of $0.05 per share on the Company's Class A and Class U common stock, in an aggregate amount of $4.4 million. The quarterly dividend will be payable on March 29, 2024 to shareholders of record as of the close of business on March 15, 2024, and the common stock will trade ex-dividend on March 14, 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. 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.

Balance Sheet and Related Metrics

Cash and marketable securities as of December 31, 2023 totaled $118.9 million. Total debt as defined in the Company’s credit agreement was $210.6 million. Net of $50 million of cash and marketable securities, total leverage as defined in the Company’s credit agreement was 2.8 times as of December 31, 2023. Net of total cash and marketable securities, total leverage was 1.6 times.

Unaudited Segment Results (In thousands)

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

 

2023

 

 

 

2022

 

 

% Change

 

 

 

2023

 

 

 

2022

 

 

% Change

 

Net Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Digital

 

$

274,865

 

 

$

230,137

 

 

 

19

%

 

$

932,730

 

 

$

747,103

 

 

 

25

%

Television

 

 

31,130

 

 

 

45,812

 

 

 

(32

)%

 

 

120,937

 

 

 

144,730

 

 

 

(16

)%

Audio

 

 

14,068

 

 

 

20,379

 

 

 

(31

)%

 

 

53,200

 

 

 

64,376

 

 

 

(17

)%

Total

 

$

320,063

 

 

$

296,328

 

 

 

8

%

 

$

1,106,867

 

 

$

956,209

 

 

 

16

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Revenue - Digital (1)

 

$

237,520

 

 

$

191,965

 

 

 

24

%

 

$

800,401

 

 

$

623,916

 

 

 

28

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Digital

 

$

26,012

 

 

$

22,553

 

 

 

15

%

 

$

95,767

 

 

$

74,130

 

 

 

29

%

Television

 

 

21,023

 

 

 

22,989

 

 

 

(9

)%

 

 

80,882

 

 

 

81,958

 

 

 

(1

)%

Audio

 

 

10,345

 

 

 

11,707

 

 

 

(12

)%

 

 

43,800

 

 

 

41,688

 

 

 

5

%

Total

 

$

57,380

 

 

$

57,249

 

 

 

0

%

 

$

220,449

 

 

$

197,776

 

 

 

11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Expenses (1)

 

$

14,458

 

 

$

22,635

 

 

 

(36

)%

 

$

50,294

 

 

$

49,404

 

 

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency (gain) loss

 

$

611

 

 

$

860

 

 

 

(29

)%

 

$

900

 

 

$

2,972

 

 

 

(70

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated EBITDA (1)

 

$

16,246

 

 

$

36,524

 

 

 

(56

)%

 

$

57,666

 

 

$

103,090

 

 

 

(44

)%

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

 

 

 


Entravision Communications

Page 4 of 9

 

About Entravision Communications Corporation

Entravision is a global advertising solutions, media and technology company. Over the past three decades, we have strategically evolved into a digital powerhouse, expertly connecting brands to consumers in the U.S., Latin America, Europe, Asia and Africa. Our digital segment, the company’s largest by revenue, offers a full suite of end-to-end advertising services. We have commercial partnerships with Meta, X Corp. (formerly known as Twitter), TikTok, and Spotify, and marketers can use our Smadex and other platforms to deliver targeted advertising to audiences around the globe. In the U.S., we maintain a diversified portfolio of television and radio stations that target Hispanic audiences and complement our global digital services. Entravision remains the largest affiliate group of the Univision and UniMás television networks. Shares of Entravision Class A Common Stock trade on the NYSE under ticker: EVC. Learn more about our offerings at entravision.com or connect with us on LinkedIn and Facebook.

Forward-Looking Statements

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

 

For more information, please contact:

Christopher T. Young

Kimberly Orlando

Chief Financial Officer and Treasurer

ADDO Investor Relations

Entravision Communications Corporation

 

310-829-5400

310-447-3870

 

evc@addo.com

cyoung@entravision.com

 

 

# # #

(Financial Table Follows)

 

 


Entravision Communications

Page 5 of 9

 

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,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net revenue

 

$

320,063

 

 

$

296,328

 

 

$

1,106,867

 

 

$

956,209

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue - digital

 

 

237,520

 

 

 

191,965

 

 

 

800,401

 

 

 

623,916

 

Direct operating expenses

 

 

33,688

 

 

 

35,106

 

 

 

128,470

 

 

 

122,611

 

Selling, general and administrative expenses

 

 

23,692

 

 

 

22,143

 

 

 

91,979

 

 

 

75,165

 

Corporate expenses

 

 

14,458

 

 

 

22,635

 

 

 

50,294

 

 

 

49,404

 

Depreciation and amortization

 

 

7,671

 

 

 

6,485

 

 

 

28,007

 

 

 

25,697

 

Change in fair value of contingent consideration

 

 

6,400

 

 

 

7,400

 

 

 

(2,539

)

 

 

14,210

 

Impairment charge

 

 

12,278

 

 

 

1,600

 

 

 

13,267

 

 

 

1,600

 

Foreign currency (gain) loss

 

 

611

 

 

 

860

 

 

 

900

 

 

 

2,972

 

Other operating (gain) loss

 

 

609

 

 

 

1,393

 

 

 

609

 

 

 

382

 

 

 

336,927

 

 

 

289,587

 

 

 

1,111,388

 

 

 

915,957

 

Operating income (loss)

 

 

(16,864

)

 

 

6,741

 

 

 

(4,521

)

 

 

40,252

 

Interest expense

 

 

(4,503

)

 

 

(3,651

)

 

 

(17,291

)

 

 

(10,876

)

Interest income

 

 

1,600

 

 

 

948

 

 

 

5,055

 

 

 

2,864

 

Dividend income

 

 

3

 

 

 

 

 

 

35

 

 

 

20

 

Realized gain (loss) on marketable securities

 

 

1

 

 

 

(59

)

 

 

(93

)

 

 

(532

)

Gain (loss) on debt extinguishment

 

 

 

 

 

 

 

 

(1,556

)

 

 

 

Income before income taxes

 

 

(19,763

)

 

 

3,979

 

 

 

(18,371

)

 

 

31,728

 

Income tax (expense) benefit

 

 

1,712

 

 

 

(3,254

)

 

 

2,750

 

 

 

(11,559

)

Net income (loss)

 

 

(18,051

)

 

 

725

 

 

 

(15,621

)

 

 

20,169

 

Net (income) loss attributable to redeemable noncontrolling interest

 

 

(157

)

 

 

 

 

 

(158

)

 

 

 

Net (income) loss attributable to noncontrolling interest

 

 

 

 

 

(2,353

)

 

 

342

 

 

 

(2,050

)

Net income (loss) attributable to common stockholders

 

$

(18,208

)

 

$

(1,628

)

 

$

(15,437

)

 

$

18,119

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted earnings (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

(0.21

)

 

$

(0.02

)

 

$

(0.18

)

 

$

0.21

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share, basic and diluted

 

$

0.05

 

 

$

0.03

 

 

$

0.20

 

 

$

0.10

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic

 

 

88,193,240

 

 

 

85,158,189

 

 

 

87,901,938

 

 

 

85,391,163

 

Weighted average common shares outstanding, diluted

 

 

88,193,240

 

 

 

85,158,189

 

 

 

87,901,938

 

 

 

87,769,762

 

 

 


Entravision Communications

Page 6 of 9

 

Entravision Communications Corporation

Consolidated Balance Sheets

(In thousands; unaudited)

 

 

December 31,

 

 

December 31,

 

 

 

2023

 

 

2022

 

ASSETS

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

105,739

 

 

$

110,691

 

Marketable securities

 

 

13,172

 

 

 

44,528

 

Restricted Cash

 

 

770

 

 

 

753

 

Trade receivables, net of allowance for doubtful accounts

 

 

235,837

 

 

 

224,713

 

Assets held for sale

 

 

301

 

 

 

 

Prepaid expenses and other current assets

 

 

30,036

 

 

 

27,238

 

Total current assets

 

 

385,855

 

 

 

407,923

 

Property and equipment, net

 

 

71,475

 

 

 

61,362

 

Intangible assets subject to amortization, net

 

 

51,784

 

 

 

61,811

 

Intangible assets not subject to amortization

 

 

195,174

 

 

 

207,453

 

Goodwill

 

 

90,672

 

 

 

86,991

 

Deferred income taxes

 

 

4,991

 

 

 

2,591

 

Operating leases right of use asset

 

 

43,941

 

 

 

44,413

 

Other assets

 

 

22,054

 

 

 

8,297

 

Total assets

 

$

865,946

 

 

$

880,841

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Current maturities of long-term debt

 

$

9,969

 

 

$

5,256

 

Accounts payable and accrued expenses

 

 

254,802

 

 

 

237,415

 

Operating lease liabilities

 

 

7,282

 

 

 

5,570

 

Total current liabilities

 

 

272,053

 

 

 

248,241

 

Long-term debt, less current maturities, net of unamortized debt issuance costs

 

 

199,552

 

 

 

207,292

 

Long-term operating lease liabilities

 

 

45,665

 

 

 

42,151

 

Other long-term liabilities

 

 

23,009

 

 

 

30,198

 

Deferred income taxes

 

 

59,381

 

 

 

67,590

 

Total liabilities

 

 

599,660

 

 

 

595,472

 

 

 

 

 

 

 

Redeemable noncontrolling interest

 

 

43,758

 

 

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

 

Class A common stock

 

 

8

 

 

 

8

 

Class B common stock

 

 

 

 

 

 

Class U common stock

 

 

1

 

 

 

1

 

Additional paid-in capital

 

 

743,246

 

 

 

776,298

 

Accumulated deficit

 

 

(519,812

)

 

 

(504,375

)

Accumulated other comprehensive income (loss)

 

 

(915

)

 

 

(1,510

)

Total stockholders' equity

 

 

222,528

 

 

 

270,422

 

Noncontrolling interest

 

 

-

 

 

 

14,947

 

Total equity

 

 

222,528

 

 

 

285,369

 

Total liabilities, redeemable noncontrolling interest and equity

 

$

865,946

 

 

$

880,841

 

 

 


Entravision Communications

Page 7 of 9

 

Entravision Communications Corporation

Consolidated Statements of Cash Flows

(In thousands; unaudited)

 

 

Three-Month Period

 

 

Twelve-Month Period

 

 

 

Ended December 31,

 

 

Ended December 31,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(18,051

)

 

$

725

 

 

$

(15,621

)

 

$

20,169

 

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

7,671

 

 

 

6,485

 

 

 

28,007

 

 

 

25,697

 

Impairment charge

 

 

12,278

 

 

 

1,600

 

 

 

13,267

 

 

 

1,600

 

Deferred income taxes

 

 

(10,796

)

 

 

(557

)

 

 

(10,965

)

 

 

(3,708

)

Non-cash interest

 

 

91

 

 

 

238

 

 

 

355

 

 

 

1,314

 

Amortization of syndication contracts

 

 

113

 

 

 

120

 

 

 

471

 

 

 

468

 

Payments on syndication contracts

 

 

(114

)

 

 

(166

)

 

 

(480

)

 

 

(470

)

Non-cash stock-based compensation

 

 

6,645

 

 

 

12,039

 

 

 

23,698

 

 

 

20,034

 

(Gain) loss on marketable securities

 

 

(1

)

 

 

59

 

 

 

93

 

 

 

532

 

(Gain) loss on disposal of assets/business

 

 

748

 

 

 

(37

)

 

 

737

 

 

 

(636

)

(Gain) loss on debt extinguishment

 

 

 

 

 

 

 

 

1,556

 

 

 

 

Change in fair value of contingent consideration

 

 

6,400

 

 

 

7,400

 

 

 

(2,539

)

 

 

14,210

 

Changes in assets and liabilities, net of businesses acquired and disposed of:

 

 

 

 

 

 

 

 

 

 

 

 

(Increase) decrease in trade receivables, net

 

 

(25,508

)

 

 

(31,983

)

 

 

(9,247

)

 

 

(9,687

)

(Increase) decrease in prepaid expenses and other current assets, operating leases right of use asset and other assets

 

 

15,025

 

 

 

2,200

 

 

 

7,826

 

 

 

2,017

 

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

 

 

11,578

 

 

 

2,652

 

 

 

38,038

 

 

 

7,377

 

Net cash provided by operating activities

 

 

6,079

 

 

 

775

 

 

 

75,196

 

 

 

78,917

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from sale of assets/business

 

 

175

 

 

 

37

 

 

 

258

 

 

 

2,708

 

Purchases of property and equipment

 

 

(7,446

)

 

 

(3,586

)

 

 

(27,327

)

 

 

(11,468

)

Purchase of businesses, net of cash acquired

 

 

 

 

 

 

 

 

(6,930

)

 

 

 

Investment in variable interest entities, net of cash consolidated

 

 

 

 

 

 

 

 

 

 

 

(5,164

)

Purchases of marketable securities

 

 

 

 

 

(13,902

)

 

 

(11,355

)

 

 

(106,382

)

Proceeds from sale of marketable securities

 

 

5,242

 

 

 

12,946

 

 

 

43,335

 

 

 

59,814

 

Purchases of investments

 

 

 

 

 

 

 

 

(300

)

 

 

 

Issuance of loan receivable

 

 

 

 

 

 

 

 

(13,636

)

 

 

 

Net cash provided by (used in) investing activities

 

 

(2,029

)

 

 

(4,505

)

 

 

(15,955

)

 

 

(60,492

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from stock option exercises

 

 

 

 

 

1

 

 

 

554

 

 

 

219

 

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

 

 

(3,899

)

 

 

(4,257

)

 

 

(4,057

)

 

 

(4,524

)

Payments on debt

 

 

(1,250

)

 

 

(751

)

 

 

(215,745

)

 

 

(3,252

)

Dividends paid

 

 

(4,406

)

 

 

(2,124

)

 

 

(17,588

)

 

 

(8,539

)

Distributions to noncontrolling interest

 

 

 

 

 

 

 

 

(3,380

)

 

 

 

Repurchase of Class A common stock

 

 

 

 

 

 

 

 

 

 

 

(11,280

)

Payment of contingent consideration

 

 

 

 

 

 

 

 

(35,113

)

 

 

(65,340

)

Principal payments under finance lease obligation

 

 

(39

)

 

 

(33

)

 

 

(152

)

 

 

(105

)

Proceeds from borrowings on debt

 

 

667

 

 

 

 

 

 

213,087

 

 

 

 

Payments for debt issuance costs

 

 

 

 

 

 

 

 

(1,777

)

 

 

 

Net cash used in financing activities

 

 

(8,927

)

 

 

(7,164

)

 

 

(64,171

)

 

 

(92,821

)

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

 

 

(3

)

 

 

(2

)

 

 

(5

)

 

 

(3

)

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

 

 

(4,880

)

 

 

(10,896

)

 

 

(4,935

)

 

 

(74,399

)

Cash, cash equivalents and restricted cash:

 

 

 

 

 

 

 

 

 

 

 

 

Beginning

 

 

111,389

 

 

 

122,340

 

 

 

111,444

 

 

 

185,843

 

Ending

 

$

106,509

 

 

$

111,444

 

 

$

106,509

 

 

$

111,444

 

 

 


Entravision Communications

Page 8 of 9

 

 

Entravision Communications Corporation

Reconciliation of Consolidated EBITDA to Cash Flows From Operating Activities

(In thousands; unaudited)

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

 

 

Three-Month Period

 

 

Twelve-Month Period

 

 

 

Ended December 31,

 

 

Ended December 31,

 

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Consolidated EBITDA (1)

 

$

16,246

 

 

$

36,524

 

 

$

57,666

 

 

$

103,090

 

EBITDA attributable to redeemable noncontrolling interest

 

 

779

 

 

 

 

 

 

1,515

 

 

 

 

EBITDA attributable to noncontrolling interest

 

 

 

 

 

3,404

 

 

 

230

 

 

 

3,399

 

Interest expense

 

 

(4,503

)

 

 

(3,651

)

 

 

(17,291

)

 

 

(10,876

)

Interest income

 

 

1,600

 

 

 

948

 

 

 

5,055

 

 

 

2,864

 

Income tax (expense) benefit

 

 

1,712

 

 

 

(3,254

)

 

 

2,750

 

 

 

(11,559

)

Amortization of syndication contracts

 

 

(113

)

 

 

(120

)

 

 

(471

)

 

 

(468

)

Payments on syndication contracts

 

 

114

 

 

 

166

 

 

 

480

 

 

 

470

 

Non-cash stock-based compensation included in direct operating

 

 

 

 

 

 

 

 

 

 

 

 

 expenses

 

 

(2,264

)

 

 

(2,816

)

 

 

(9,482

)

 

 

(5,694

)

Non-cash stock-based compensation included in corporate expenses

 

 

(4,381

)

 

 

(9,223

)

 

 

(14,216

)

 

 

(14,340

)

Depreciation and amortization

 

 

(7,671

)

 

 

(6,485

)

 

 

(28,007

)

 

 

(25,697

)

Change in fair value of contingent consideration

 

 

(6,400

)

 

 

(7,400

)

 

 

2,539

 

 

 

(14,210

)

Non-recurring severance charge

 

 

(287

)

 

 

(4,316

)

 

 

(899

)

 

 

(4,316

)

Dividend income

 

 

3

 

 

 

 

 

 

35

 

 

 

20

 

Realized gain (loss) on marketable securities

 

 

1

 

 

 

(59

)

 

 

(93

)

 

 

(532

)

Other operating gain (loss)

 

 

(609

)

 

 

(1,393

)

 

 

(609

)

 

 

(382

)

Impairment charge

 

 

(12,278

)

 

 

(1,600

)

 

 

(13,267

)

 

 

(1,600

)

Gain (loss) on debt extinguishment

 

 

 

 

 

 

 

 

(1,556

)

 

 

 

Net (income) loss attributable to redeemable noncontrolling interest

 

 

(157

)

 

 

 

 

 

(158

)

 

 

 

Net (income) loss attributable to noncontrolling interest

 

 

 

 

 

(2,353

)

 

 

342

 

 

 

(2,050

)

Net income (loss) attributable to common stockholders

 

 

(18,208

)

 

 

(1,628

)

 

 

(15,437

)

 

 

18,119

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

7,671

 

 

 

6,485

 

 

 

28,007

 

 

 

25,697

 

Impairment charge

 

 

12,278

 

 

 

1,600

 

 

 

13,267

 

 

 

1,600

 

Deferred income taxes

 

 

(10,796

)

 

 

(557

)

 

 

(10,965

)

 

 

(3,708

)

Amortization of debt issuance costs

 

 

91

 

 

 

238

 

 

 

355

 

 

 

1,314

 

Amortization of syndication contracts

 

 

113

 

 

 

120

 

 

 

471

 

 

 

468

 

Payments on syndication contracts

 

 

(114

)

 

 

(166

)

 

 

(480

)

 

 

(470

)

Non-cash stock-based compensation

 

 

6,645

 

 

 

12,039

 

 

 

23,698

 

 

 

20,034

 

Realized (gain) loss on marketable securities

 

 

(1

)

 

 

59

 

 

 

93

 

 

 

532

 

(Gain) loss on disposal of assets/business

 

 

748

 

 

 

(37

)

 

 

737

 

 

 

(636

)

Change in fair value of contingent consideration

 

 

6,400

 

 

 

7,400

 

 

 

(2,539

)

 

 

14,210

 

(Gain) loss on debt extinguishment

 

 

 

 

 

 

 

 

1,556

 

 

 

 

Net (income) loss attributable to redeemable noncontrolling interest

 

 

157

 

 

 

 

 

 

158

 

 

 

 

Net income (loss) attributable to noncontrolling interest

 

 

 

 

 

2,353

 

 

 

(342

)

 

 

2,050

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

(Increase) decrease in accounts receivable

 

 

(25,508

)

 

 

(31,983

)

 

 

(9,247

)

 

 

(9,687

)

(Increase) decrease in prepaid expenses and other assets

 

 

15,025

 

 

 

2,200

 

 

 

7,826

 

 

 

2,017

 

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

 

 

11,578

 

 

 

2,652

 

 

 

38,038

 

 

 

7,377

 

Net cash provided by (used in ) operating activities

 

$

6,079

 

 

$

775

 

 

$

75,196

 

 

$

78,917

 

(1) Consolidated EBITDA is defined on page 2.

 


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 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,

 

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Consolidated EBITDA (1)

 

$

16,246

 

 

$

36,524

 

 

$

57,666

 

 

$

103,090

 

Net, cash interest expense (1)

 

 

(2,812

)

 

 

(2,465

)

 

 

(11,881

)

 

 

(6,698

)

Dividend income

 

 

3

 

 

 

 

 

 

35

 

 

 

20

 

Cash paid for income taxes

 

 

(7,171

)

 

 

(5,465

)

 

 

(13,100

)

 

 

(16,921

)

Capital expenditures (2)

 

 

(7,446

)

 

 

(3,586

)

 

 

(27,327

)

 

 

(11,468

)

Landlord incentive reimbursement

 

 

 

 

 

 

 

 

3,509

 

 

 

 

Other operating gain (loss)

 

 

(609

)

 

 

(1,393

)

 

 

(609

)

 

 

(382

)

Non-recurring cash severance charge

 

 

(287

)

 

 

(4,316

)

 

 

(899

)

 

 

(4,316

)

Free cash flow (1)

 

 

(2,076

)

 

 

19,299

 

 

 

7,394

 

 

 

63,325

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures (2)

 

 

7,446

 

 

 

3,586

 

 

 

27,327

 

 

 

11,468

 

Landlord incentive reimbursement

 

 

 

 

 

 

 

 

(3,509

)

 

 

 

EBITDA attributable to redeemable noncontrolling interest

 

 

779

 

 

 

 

 

 

1,515

 

 

 

 

EBITDA attributable to noncontrolling interest

 

 

 

 

 

3,404

 

 

 

230

 

 

 

3,399

 

(Gain) loss on disposal of assets/business

 

 

748

 

 

 

(37

)

 

 

737

 

 

 

(636

)

Cash paid for income taxes

 

 

7,171

 

 

 

5,465

 

 

 

13,100

 

 

 

16,921

 

Deferred income taxes

 

 

(10,796

)

 

 

(557

)

 

 

(10,965

)

 

 

(3,708

)

Income tax (expense) benefit

 

 

1,712

 

 

 

(3,254

)

 

 

2,750

 

 

 

(11,559

)

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

(Increase) decrease in accounts receivable

 

 

(25,508

)

 

 

(31,983

)

 

 

(9,247

)

 

 

(9,687

)

(Increase) decrease in prepaid expenses and other assets

 

 

15,025

 

 

 

2,200

 

 

 

7,826

 

 

 

2,017

 

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

 

 

11,578

 

 

 

2,652

 

 

 

38,038

 

 

 

7,377

 

Cash Flows From Operating Activities

 

$

6,079

 

 

$

775

 

 

$

75,196

 

 

$

78,917

 

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

 


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Document And Entity Information
Mar. 04, 2024
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Mar. 04, 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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