Three-Month Period | ||||||||||||
Ended March 31, | ||||||||||||
2010 | 2009 | % Change | ||||||||||
Net revenue |
$ | 43,073 | $ | 41,715 | 3 | % | ||||||
Operating expenses (1) |
29,824 | 31,813 | (6 | )% | ||||||||
Corporate expenses (2) |
3,748 | 3,873 | (3 | )% | ||||||||
Consolidated adjusted EBITDA (3) |
9,528 | 6,716 | 42 | % | ||||||||
Free cash flow (4) |
$ | (2,600 | ) | $ | (1,099 | ) | 137 | % | ||||
Free cash flow per share, basic and diluted (4) |
$ | (0.03 | ) | $ | (0.01 | ) | 200 | % | ||||
Net loss applicable to common stockholders |
$ | (2,184 | ) | $ | (14,494 | ) | (85 | )% | ||||
Net loss per share applicable |
||||||||||||
to common stockholders, basic and diluted |
$ | (0.03 | ) | $ | (0.17 | ) | (82 | )% | ||||
Weighted average common shares outstanding, basic |
84,430,204 | 84,284,427 | ||||||||||
Weighted average common shares outstanding, diluted |
84,430,204 | 84,284,427 |
(1) |
Operating expenses include direct operating, selling, general and administrative expenses. Included in operating expenses are $0.3 million and $0.4 million of non-cash stock-based compensation for the three-month periods ended March 31, 2010 and 2009, respectively. Operating expenses do not include corporate expenses, depreciation and amortization, impairment charge, gain (loss) on sale of assets and gain (loss) on
debt extinguishment. |
(2) |
Corporate expenses include $0.2 million and $0.4 million of non-cash stock-based compensation for the three-month periods ended March 31, 2010 and 2009, respectively. |
(3) |
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, gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate and syndication programming amortization less
syndication programming payments. We use the term consolidated adjusted EBITDA because that measure is defined in our syndicated bank 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, gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate and syndication programming amortization and does include syndication programming
payments. While many in the financial community and we consider consolidated adjusted EBITDA to be important, it should be considered in addition to, but not as a substitute for or superior to, other measures of liquidity and financial performance prepared in accordance with accounting principles generally accepted in the United States of America, such as cash flows from operating activities, operating income and net income. As consolidated adjusted EBITDA excludes non-cash gain (loss) on sale of assets, non-cash
depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation expense, net interest expense, gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate and syndication programming amortization and includes syndication programming payments, consolidated adjusted EBITDA has certain limitations because it excludes and includes several important non-cash financial line items. Therefore, we consider both non-GAAP and GAAP
measures when evaluating our business. Consolidated adjusted EBITDA is also used to make executive compensation decisions. |
(4) |
Free cash flow is defined as consolidated adjusted EBITDA less cash paid for income taxes, net interest expense and capital expenditures. Net interest expense is defined as interest expense, less non-cash interest expense relating
to amortization of debt finance costs, less interest income less the change in the fair value of our interest rate swaps. Free cash flow per share is defined as free cash flow divided by the basic or diluted weighted average common shares outstanding. |
Three-Month Period | ||||||||||||
Ended March 31, | ||||||||||||
2010 | 2009 | % Change | ||||||||||
Net revenue |
$ | 43,073 | $ | 41,715 | 3 | % | ||||||
Operating expenses (1) |
29,824 | 31,813 | (6 | )% | ||||||||
Corporate expenses (1) |
3,748 | 3,873 | (3 | )% | ||||||||
Depreciation and amortization |
4,723 | 5,430 | (13 | )% | ||||||||
Operating income |
4,778 | 599 | NM | |||||||||
Interest expense, net |
(5,431 | ) | (4,813 | ) | 13 | % | ||||||
Loss on debt extinguishment |
- | (4,716 | ) | NM | ||||||||
Loss before income taxes |
(653 | ) | (8,930 | ) | (93 | )% | ||||||
Income tax expense |
(1,410 | ) | (5,410 | ) | (74 | )% | ||||||
Net loss before equity in net loss of nonconsolidated affiliates |
(2,063 | ) | (14,340 | ) | (86 | )% | ||||||
Equity in net loss of nonconsolidated affiliates, net of tax |
(121 | ) | (154 | ) | (21 | )% | ||||||
Net loss |
$ | (2,184 | ) | $ | (14,494 | ) | (85 | )% |
Three-Month Period | ||||||||||||
Ended March 31, | ||||||||||||
2010 | 2009 | % Change | ||||||||||
Net Revenue |
||||||||||||
Television |
$ | 29,645 | $ | 28,272 | 5 | % | ||||||
Radio |
13,428 | 13,443 | (0 | )% | ||||||||
Total |
$ | 43,073 | $ | 41,715 | 3 | % | ||||||
Operating Expenses (1) |
||||||||||||
Television |
$ | 17,957 | $ | 19,355 | (7 | )% | ||||||
Radio |
11,867 | 12,458 | (5 | )% | ||||||||
Total |
$ | 29,824 | $ | 31,813 | (6 | )% | ||||||
Corporate Expenses (1) |
$ | 3,748 | $ | 3,873 | (3 | )% | ||||||
Consolidated adjusted EBITDA (1) |
$ | 9,528 | $ | 6,716 | 42 | % |
Christopher T. Young | Mike Smargiassi/Christian Nery |
Chief Financial Officer | Brainerd Communicators, Inc. |
Entravision Communications Corporation | 212-986-6667 |
310-447-3870 |
Three-Month Period |
||||||||
Ended March 31, |
||||||||
2010 |
2009 |
|||||||
Net revenue |
$ | 43,073 | $ | 41,715 | ||||
Expenses: |
||||||||
Direct operating expenses (including related parties of |
||||||||
$2,351 and $1,727) (including non-cash stock-based |
||||||||
compensation of $105 and $166) |
20,768 | 21,861 | ||||||
Selling, general and administrative expenses (including non-cash |
||||||||
stock-based compensation of $148 and $207) |
9,056 | 9,952 | ||||||
Corporate expenses (including non-cash stock-based compensation |
||||||||
of $206 and $406) |
3,748 | 3,873 | ||||||
Depreciation and amortization (includes direct |
||||||||
operating of $3,467 and $4,074; |
||||||||
selling, general and administrative of $959 and $1,021; |
||||||||
and corporate of $297 and $334) (including related |
||||||||
parties of $580 and $580) |
4,723 | 5,430 | ||||||
38,295 | 41,116 | |||||||
Operating income |
4,778 | 599 | ||||||
Interest expense (including related parties of $29 and $31) |
(5,514 | ) | (5,061 | ) | ||||
Interest income |
83 | 248 | ||||||
Loss on debt extinguishment |
- | (4,716 | ) | |||||
Loss before income taxes |
(653 | ) | (8,930 | ) | ||||
Income tax expense |
(1,410 | ) | (5,410 | ) | ||||
Loss before equity in net loss of nonconsolidated affiliate |
(2,063 | ) | (14,340 | ) | ||||
Equity in net loss of nonconsolidated affiliate, net of tax |
(121 | ) | (154 | ) | ||||
Net loss applicable to common stockholders |
$ | (2,184 | ) | $ | (14,494 | ) | ||
Basic and diluted earnings per share: |
||||||||
Net loss per share applicable to common stockholders, |
||||||||
basic and diluted |
$ | (0.03 | ) | $ | (0.17 | ) | ||
Weighted average common shares outstanding, basic |
84,430,204 | 84,284,427 | ||||||
Weighted average common shares outstanding, diluted |
84,430,204 | 84,284,427 |
Three-Month Period |
||||||||
Ended March 31, |
||||||||
2010 |
2009 |
|||||||
Cash flows from operating activities: |
||||||||
Net loss |
$ | (2,184 | ) | $ | (14,494 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: |
||||||||
Depreciation and amortization |
4,723 | 5,430 | ||||||
Deferred income taxes |
1,213 | 5,500 | ||||||
Amortization of debt issue costs |
104 | 89 | ||||||
Amortization of syndication contracts |
272 | 621 | ||||||
Payments on syndication contracts |
(704 | ) | (713 | ) | ||||
Equity in net loss of nonconsolidated affiliate |
121 | 154 | ||||||
Non-cash stock-based compensation |
459 | 779 | ||||||
Gain on sale of media properties and other assets |
- | (100 | ) | |||||
Non-cash expenses related to debt extinguishment |
- | 945 | ||||||
Change in fair value of interest rate swap agreements |
(3,930 | ) | (1,681 | ) | ||||
Changes in assets and liabilities, net of effect of acquisitions and dispositions: |
||||||||
Decrease in accounts receivable |
4,957 | 4,319 | ||||||
(Increase) decrease in prepaid expenses and other assets |
(9 | ) | 138 | |||||
Increase (decrease) in accounts payable, accrued expenses and other liabilities |
112 | (782 | ) | |||||
Net cash provided by operating activities |
5,134 | 205 | ||||||
Cash flows from investing activities: |
||||||||
Proceeds from sale of property and equipment and intangibles |
- | 100 | ||||||
Purchases of property and equipment and intangibles |
(2,674 | ) | (1,500 | ) | ||||
Deposits on acquisitions |
- | (3,800 | ) | |||||
Net cash used in investing activities |
(2,674 | ) | (5,200 | ) | ||||
Cash flows from financing activities: |
||||||||
Proceeds from issuance of common stock |
150 | 202 | ||||||
Payments on long-term debt |
(3,458 | ) | (41,000 | ) | ||||
Repurchase of Class A common stock |
- | (543 | ) | |||||
Payments of deferred debt and offering costs |
(362 | ) | (1,182 | ) | ||||
Net cash used in financing activities |
(3,670 | ) | (42,523 | ) | ||||
Net decrease in cash and cash equivalents |
(1,210 | ) | (47,518 | ) | ||||
Cash and cash equivalents: |
||||||||
Beginning |
27,666 | 64,294 | ||||||
Ending |
$ | 26,456 | $ | 16,776 |
Three-Month Period |
||||||||
Ended March 31, |
||||||||
2010 |
2009 |
|||||||
Consolidated adjusted EBITDA (1) |
$ | 9,528 | $ | 6,716 | ||||
Interest expense |
(5,514 | ) | (5,061 | ) | ||||
Interest income |
83 | 248 | ||||||
Loss on debt extinguishment |
- | (4,716 | ) | |||||
Income tax expense |
(1,410 | ) | (5,410 | ) | ||||
Amortization of syndication contracts |
(272 | ) | (621 | ) | ||||
Payments on syndication contracts |
704 | 713 | ||||||
Non-cash stock-based compensation included in direct operating |
||||||||
expenses |
(105 | ) | (166 | ) | ||||
Non-cash stock-based compensation included in selling, general |
||||||||
and administrative expenses |
(148 | ) | (207 | ) | ||||
Non-cash stock-based compensation included in corporate expenses |
(206 | ) | (406 | ) | ||||
Depreciation and amortization |
(4,723 | ) | (5,430 | ) | ||||
Equity in net loss of nonconsolidated affiliates |
(121 | ) | (154 | ) | ||||
Net loss |
(2,184 | ) | (14,494 | ) | ||||
Depreciation and amortization |
4,723 | 5,430 | ||||||
Deferred income taxes |
1,213 | 5,500 | ||||||
Amortization of debt issue costs |
104 | 89 | ||||||
Amortization of syndication contracts |
272 | 621 | ||||||
Payments on syndication contracts |
(704 | ) | (713 | ) | ||||
Equity in net loss of nonconsolidated affiliate |
121 | 154 | ||||||
Non-cash stock-based compensation |
459 | 779 | ||||||
Gain on sale of media properties and other assets |
- | (100 | ) | |||||
Non-cash expenses related to debt extinguishment |
- | 945 | ||||||
Change in fair value of interest rate swap agreements |
(3,930 | ) | (1,681 | ) | ||||
Changes in assets and liabilities, net of effect of acquisitions and dispositions: |
||||||||
Decrease in accounts receivable |
4,957 | 4,319 | ||||||
(Increase) decrease in prepaid expenses and other assets |
(9 | ) | 138 | |||||
Increase (decrease) in accounts payable, accrued expenses and other liabilities |
112 | (782 | ) | |||||
Cash flows from operating activities |
$ | 5,134 | $ | 205 |
Three-Month Period |
||||||||
Ended March 31, |
||||||||
2010 |
2009 |
|||||||
Consolidated adjusted EBITDA (1) |
$ | 9,528 | $ | 6,716 | ||||
Net interest expense (1) |
9,257 | 6,405 | ||||||
Cash paid (refunded) for income taxes |
197 | (90 | ) | |||||
Capital expenditures (2) |
2,674 | 1,500 | ||||||
Free cash flow (1) |
(2,600 | ) | (1,099 | ) | ||||
Capital expenditures (2) |
2,674 | 1,500 | ||||||
Amortization of debt issue costs |
(104 | ) | (89 | ) | ||||
Change in fair value of interest rate swap agreements |
3,930 | 1,681 | ||||||
Loss on debt extinguishment |
- | (4,716 | ) | |||||
Non-cash income tax expense |
(1,213 | ) | (5,500 | ) | ||||
Amortization of syndication contracts |
(272 | ) | (621 | ) | ||||
Payments on syndication contracts |
704 | 713 | ||||||
Non-cash stock-based compensation included in direct operating |
||||||||
expenses |
(105 | ) | (166 | ) | ||||
Non-cash stock-based compensation included in selling, general |
||||||||
and administrative expenses |
(148 | ) | (207 | ) | ||||
Non-cash stock-based compensation included in corporate expenses |
(206 | ) | (406 | ) | ||||
Depreciation and amortization |
(4,723 | ) | (5,430 | ) | ||||
Equity in net loss of nonconsolidated affiliates |
(121 | ) | (154 | ) | ||||
Net loss |
$ | (2,184 | ) | $ | (14,494 | ) |