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): November 3, 2011
ENTRAVISION COMMUNICATIONS CORPORATION
(Exact name of registrant as specified in its charter)
Delaware | 1-15997 | 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)
(310) 447-3870
(Registrants telephone number, including area code)
N/A
(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 (see General Instruction A.2. below):
¨ | 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)) |
Item 2.02 | Results of Operations and Financial Condition. |
On November 3, 2011, Entravision Communications Corporation (the Company) issued a press release announcing its results of operations for the three- and nine-month periods ended September 30, 2011. A copy of that press release is furnished herewith as Exhibit 99.1.
The information in this Current Report on Form 8-K, including the exhibit hereto, 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 November 3, 2011. |
- 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: November 3, 2011 | By: | /s/ Walter F. Ulloa | ||||
Walter F. Ulloa | ||||||
Chairman and Chief Executive Officer |
- 3 -
EXHIBIT INDEX
Exhibit Number |
Description of Exhibit | |
99.1 | Press release issued by Entravision Communications Corporation on November 3, 2011. |
- 4 -
Exhibit 99.1
ENTRAVISION COMMUNICATIONS CORPORATION REPORTS
THIRD QUARTER 2011 RESULTS
SANTA MONICA, CALIFORNIA, November 3, 2011 Entravision Communications Corporation (NYSE: EVC) today reported financial results for the three- and nine-month periods ended September 30, 2011.
Historical results, which are attached, are in thousands of U.S. dollars (except share and per share data). 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 7. Unaudited financial highlights are as follows:
Three-Month Period Ended September 30, |
Nine-Month Period Ended September 30, |
|||||||||||||||||||||||
2011 | 2010 | % Change | 2011 | 2010 | % Change | |||||||||||||||||||
Net revenue |
$ | 50,115 | $ | 53,325 | (6 | )% | $ | 144,424 | $ | 149,829 | (4 | )% | ||||||||||||
Operating expenses (1) |
31,203 | 31,224 | (0 | )% | 93,040 | 92,145 | 1 | % | ||||||||||||||||
Corporate expenses (2) |
3,885 | 3,823 | 2 | % | 11,402 | 11,048 | 3 | % | ||||||||||||||||
Consolidated adjusted EBITDA (3) |
15,125 | 18,444 | (18 | )% | 41,132 | 46,938 | (12 | )% | ||||||||||||||||
Free cash flow (4) |
$ | 4,272 | $ | 8,109 | (47 | )% | $ | 7,689 | $ | 12,643 | (39 | )% | ||||||||||||
Free cash flow per share, basic and diluted (4) |
$ | 0.05 | $ | 0.10 | (50 | )% | $ | 0.09 | $ | 0.15 | (40 | )% | ||||||||||||
Net income (loss) applicable to common stockholders |
$ | (1,384 | ) | $ | 6,408 | NM | $ | (6,168 | ) | $ | 11,187 | NM | ||||||||||||
Net income (loss) per share applicable to common stockholders, basic and diluted |
$ | (0.02 | ) | $ | 0.08 | NM | $ | (0.07 | ) | $ | 0.13 | NM | ||||||||||||
Weighted average common shares outstanding, basic |
85,055,659 | 84,512,128 | 85,049,518 | 84,479,299 | ||||||||||||||||||||
Weighted average common shares outstanding, diluted |
85,055,659 | 85,089,605 | 85,049,518 | 85,215,491 |
(1) | Operating expenses include direct operating, selling, general and administrative expenses. Included in operating expenses are $0.2 million and $0.3 million of non-cash stock-based compensation for the three-month periods ended September 30, 2011 and 2010, respectively and $0.6 million and $0.8 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2011 and 2010, 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 $0.3 million and $0.4 million of non-cash stock-based compensation for the three-month periods ended September 30, 2011 and 2010, respectively and $0.7 million and $0.8 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2011 and 2010, 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, other income (loss), net interest expense, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses and syndication programming amortization less syndication programming payments. We use the term consolidated adjusted EBITDA because that measure is defined in our revolving credit facility and does not include gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation, other income (loss), net interest expense, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses 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, other income (loss), net interest expense, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses 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 non-cash interest expense relating to discount amortization on our $400 million aggregate principal amount of 8.750% senior secured first lien notes due 2017 (the Notes), less interest income and 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. |
Entravision Communications
Page 2 of 8
Commenting on the Companys earnings results, Walter F. Ulloa, Chairman and Chief Executive Officer, said, During the third quarter of 2011, we faced challenging comparisons to last years third quarter, when we benefited from World Cup and political advertising revenue. Nevertheless, our audience shares remain strong in the nations most densely populated Hispanic markets, and we believe we are well positioned to benefit as the U.S. Hispanic market continues to expand and advertisers increasingly recognize the importance of reaching our target audience. We remain focused on improving our operating performance while continuing to carefully manage our costs.
Financial Results
Three-Month Period Ended September 30, 2011 Compared to the Three-Month Period Ended
September 30, 2010
(Unaudited)
Three-Month Period Ended September 30, |
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2011 | 2010 | % Change | ||||||||||
Net revenue |
$ | 50,115 | $ | 53,325 | (6 | )% | ||||||
Operating expenses (1) |
31,203 | 31,224 | (0 | )% | ||||||||
Corporate expenses (1) |
3,885 | 3,823 | 2 | % | ||||||||
Depreciation and amortization |
5,015 | 4,867 | 3 | % | ||||||||
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Operating income (loss) |
10,012 | 13,411 | (25 | )% | ||||||||
Interest expense, net |
(9,444 | ) | (4,302 | ) | 120 | % | ||||||
Loss on debt extinguishment |
| (987 | ) | (100 | )% | |||||||
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Income (loss) before income taxes |
568 | 8,122 | (93 | )% | ||||||||
Income tax (expense) benefit |
(1,952 | ) | (1,764 | ) | 11 | % | ||||||
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Net income (loss) before equity in net income (loss) of nonconsolidated affiliates |
(1,384 | ) | 6,358 | NM | ||||||||
Equity in net income (loss) of nonconsolidated affiliates, net of tax |
| 50 | (100 | )% | ||||||||
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Net income (loss) |
$ | (1,384 | ) | $ | 6,408 | NM | ||||||
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(1) | Operating expenses and corporate expenses are defined on page 1. |
Net revenue decreased to $50.1 million for the three-month period ended September 30, 2011 from $53.3 million for the three-month period ended September 30, 2010, a decrease of $3.2 million. Of the overall decrease, $2.5 million came from our radio segment and was primarily attributable to the absence of advertising revenue from the World Cup in 2011 compared to 2010 and a decrease in political advertising revenue, which is not material in 2011. We also benefited from revenue from a large Los Angeles promotional event during the third quarter of 2010, which event did not take place in 2011. Additionally, $0.7 million of the overall decrease came from our television segment and was primarily attributable to a decrease in national advertising, the absence of advertising revenue from the World Cup in 2011 compared to 2010, and a decrease in political advertising revenue, which is not material in 2011, partially offset by an increase in retransmission consent revenue.
Operating expenses were $31.2 million for each of the three-month periods ended September 30, 2011 and 2010. An increase in salary expense as a result of the partial restoration of employee salaries in 2011 and expenses associated with Lotus/Entravision Reps LLC were offset by a decrease in expenses from a large Los Angeles promotional event during the third quarter of 2010, which event did not take place in 2011.
Entravision Communications
Page 3 of 8
Corporate expenses increased to $3.9 million for the three-month period ended September 30, 2011 from $3.8 million for the three-month period ended September 30, 2010, an increase of $0.1 million. The increase was attributable to an increase in professional fees.
Nine-Month Period Ended September 30, 2011 Compared to the Nine-Month Period Ended September 30, 2010
(Unaudited)
Nine-Month Period Ended September 30, |
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2011 | 2010 | % Change | ||||||||||
Net revenue |
$ | 144,424 | $ | 149,829 | (4 | )% | ||||||
Operating expenses (1) |
93,040 | 92,145 | 1 | % | ||||||||
Corporate expenses (1) |
11,402 | 11,048 | 3 | % | ||||||||
Depreciation and amortization |
14,172 | 14,464 | (2 | )% | ||||||||
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Operating income (loss) |
25,810 | 32,172 | (20 | )% | ||||||||
Interest expense, net |
(28,344 | ) | (14,912 | ) | 90 | % | ||||||
Other income (loss) |
687 | | NM | |||||||||
Loss on debt extinguishment |
| (987 | ) | (100 | )% | |||||||
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Income (loss) before income taxes |
(1,847 | ) | 16,273 | NM | ||||||||
Income tax (expense) benefit |
(4,321 | ) | (5,102 | ) | (15 | )% | ||||||
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Net income (loss) before equity in net income (loss) of nonconsolidated affiliates |
(6,168 | ) | 11,171 | NM | ||||||||
Equity in net income (loss) of nonconsolidated affiliates, net of tax |
| 16 | (100 | )% | ||||||||
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Net income (loss) |
$ | (6,168 | ) | $ | 11,187 | NM | ||||||
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(1) | Operating expenses and corporate expenses are defined on page 1. |
Net revenue decreased to $144.4 million for the nine-month period ended September 30, 2011 from $149.8 million for the nine-month period ended September 30, 2010, a decrease of $5.4 million. Of the overall decrease, $4.0 million came from our radio segment and was primarily attributable to the absence of advertising revenue from the World Cup in 2011 compared to 2010 and a decrease in political advertising revenue, which is not material in 2011. We also benefited from revenue from a large Los Angeles promotional event during the third quarter of 2010, which event did not take place in 2011. Additionally, $1.4 million of the overall decrease came from our television segment and was primarily attributable to a decrease in national advertising, the absence of advertising revenue from the World Cup in 2011 compared to 2010, and a decrease in political advertising revenue, which is not material in 2011, partially offset by an increase in retransmission consent revenue.
Operating expenses increased to $93.0 million for the nine-month period ended September 30, 2011 from $92.1 million for the nine-month period ended September 30, 2010, an increase of $0.9 million. The increase was primarily attributable to an increase in salary expense as a result of the partial restoration of employee salaries in 2011 and expenses associated with Lotus/Entravision Reps LLC, partially offset by a decrease in expenses from a large Los Angeles promotional event during the third quarter of 2010, which event did not take place in 2011.
Corporate expenses increased to $11.4 million for the nine-month period ended September 30, 2011 from $11.0 million for the nine-month period ended September 30, 2010, an increase of $0.4 million. The increase was attributable to an increase in professional fees.
Entravision Communications
Page 4 of 8
Segment Results
The following represents selected unaudited segment information:
Three-Month Period Ended September 30, |
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2011 | 2010 | % Change | ||||||||||
Net Revenue |
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Television |
$ | 33,564 | $ | 34,322 | (2 | )% | ||||||
Radio |
16,551 | 19,003 | (13 | )% | ||||||||
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Total |
$ | 50,115 | $ | 53,325 | (6 | )% | ||||||
Operating Expenses (1) |
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Television |
$ | 18,203 | $ | 18,041 | 1 | % | ||||||
Radio |
13,000 | 13,183 | (1 | )% | ||||||||
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Total |
$ | 31,203 | $ | 31,224 | (0 | )% | ||||||
Corporate Expenses (1) |
$ | 3,885 | $ | 3,823 | 2 | % | ||||||
Consolidated adjusted EBITDA (1) |
$ | 15,125 | $ | 18,444 | (18 | )% |
(1) | Operating expenses, Corporate expenses, and Consolidated adjusted EBITDA are defined on page 1. |
Entravision Communications Corporation will hold a conference call to discuss its 2011 third quarter results on November 3, 2011 at 5 p.m. Eastern Time. To access the conference call, please dial 412-858-4600 ten minutes prior to the start time. The call will be webcast live and archived for replay on the investor relations portion of the Companys Web site located at www.entravision.com.
Entravision Communications Corporation is a diversified Spanish-language media company utilizing a combination of television, radio and digital operations to reach Hispanic consumers across the United States, as well as the border markets of Mexico. Entravision is the largest affiliate group of both the top-ranked Univision television network and Univisions TeleFutura network, with television stations in 20 of the nations top 50 Hispanic markets. The company also operates one of the nations largest groups of primarily Spanish-language radio stations, consisting of 48 owned and operated radio stations. Additionally, Entravision has a variety of cross-platform digital content and sales offerings designed to capitalize on the companys leadership position within the Hispanic broadcasting community. Entravision shares of Class A Common Stock are traded on The New York Stock Exchange under the symbol: EVC.
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 Companys 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 Companys filings with the Securities and Exchange Commission.
# # #
(Financial Table Follows)
For more information, please contact: | ||||
Christopher T. Young | Mike Smargiassi/Brad Edwards | |||
Chief Financial Officer | Brainerd Communicators, Inc. | |||
Entravision Communications Corporation | 212-986-6667 | |||
310-447-3870 |
Entravision Communications
Page 5 of 8
Entravision Communications Corporation
Consolidated Statements of Operations
(In thousands, except share and per share data)
(Unaudited)
Three-Month Period Ended September 30, |
Nine-Month Period Ended September 30, |
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2011 | 2010 | 2011 | 2010 | |||||||||||||
Net revenue |
$ | 50,115 | $ | 53,325 | $ | 144,424 | $ | 149,829 | ||||||||
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Expenses: |
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Direct operating expenses (including related parties of $2,366, $2,751, $5,885, and $8,253) (including non-cash stock-based compensation of $51, $104, $155 and $312) |
22,582 | 21,011 | 65,890 | 63,941 | ||||||||||||
Selling, general and administrative expenses (including non-cash stock-based compensation of $157, $147, $472, and $442) |
8,621 | 10,213 | 27,150 | 28,204 | ||||||||||||
Corporate expenses (including non-cash stock-based compensation of $287, $357, $732, and $849) |
3,885 | 3,823 | 11,402 | 11,048 | ||||||||||||
Depreciation and amortization (includes direct operating of $3,333, $3,365, $10,011, and $10,239; selling, general and administrative of $797, $878, $2,416, and $2,719; and corporate of $885, $623, $1,745, and $1,507) (including related parties of $1,205, $893, $2,725, and $2,319) |
5,015 | 4,867 | 14,172 | 14,464 | ||||||||||||
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40,103 | 39,914 | 118,614 | 117,657 | |||||||||||||
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Operating income (loss) |
10,012 | 13,411 | 25,810 | 32,172 | ||||||||||||
Interest expense (including related parties of $0, $15, $30, and $69) |
(9,444 | ) | (4,394 | ) | (28,346 | ) | (15,171 | ) | ||||||||
Interest income |
| 92 | 2 | 259 | ||||||||||||
Other income (loss) |
| | 687 | | ||||||||||||
Loss on debt extinguishment |
| (987 | ) | | (987 | ) | ||||||||||
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Income (loss) before income taxes |
568 | 8,122 | (1,847 | ) | 16,273 | |||||||||||
Income tax (expense) benefit |
(1,952 | ) | (1,764 | ) | (4,321 | ) | (5,102 | ) | ||||||||
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Income (loss) before equity in net income (loss) of nonconsolidated affiliate |
(1,384 | ) | 6,358 | (6,168 | ) | 11,171 | ||||||||||
Equity in net income (loss) of nonconsolidated affiliate, net of tax |
| 50 | | 16 | ||||||||||||
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Net income (loss) applicable to common stockholders |
$ | (1,384 | ) | $ | 6,408 | $ | (6,168 | ) | $ | 11,187 | ||||||
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Basic and diluted earnings per share: |
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Net income (loss) per share applicable to common stockholders, basic and diluted |
$ | (0.02 | ) | $ | 0.08 | $ | (0.07 | ) | $ | 0.13 | ||||||
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Weighted average common shares outstanding, basic |
85,055,659 | 84,512,128 | 85,049,518 | 84,479,299 | ||||||||||||
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Weighted average common shares outstanding, diluted |
85,055,659 | 85,089,605 | 85,049,518 | 85,215,491 | ||||||||||||
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Entravision Communications
Page 6 of 8
Entravision Communications Corporation
Consolidated Statements of Cash Flows
(Unaudited; in thousands)
Three-Month Period Ended September 30, |
Nine-Month Period Ended September 30, |
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2011 | 2010 | 2011 | 2010 | |||||||||||||
Cash flows from operating activities: |
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Net income (loss) |
$ | (1,384 | ) | $ | 6,408 | $ | (6,168 | ) | $ | 11,187 | ||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
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Depreciation and amortization |
5,015 | 4,867 | 14,172 | 14,464 | ||||||||||||
Deferred income taxes |
1,827 | 1,587 | 3,444 | 4,214 | ||||||||||||
Amortization of debt issue costs |
556 | 487 | 1,642 | 695 | ||||||||||||
Amortization of syndication contracts |
154 | 290 | 1,297 | 840 | ||||||||||||
Payments on syndication contracts |
(551 | ) | (732 | ) | (1,506 | ) | (2,141 | ) | ||||||||
Equity in net (income) loss of nonconsolidated affiliate |
| (50 | ) | | (16 | ) | ||||||||||
Non-cash stock-based compensation |
495 | 608 | 1,359 | 1,603 | ||||||||||||
Other (income) loss |
| | (687 | ) | | |||||||||||
Non-cash expenses related to debt extinguishment |
| 934 | | 934 | ||||||||||||
Change in fair value of interest rate swap agreements |
| (4,135 | ) | | (12,188 | ) | ||||||||||
Changes in assets and liabilities, net of effect of acquisitions and dispositions: |
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(Increase) decrease in restricted cash |
| (1,023 | ) | 809 | (1,023 | ) | ||||||||||
(Increase) decrease in accounts receivable |
50 | 1,765 | 1,655 | (1,860 | ) | |||||||||||
(Increase) decrease in prepaid expenses and other assets |
(308 | ) | (474 | ) | (261 | ) | (426 | ) | ||||||||
Increase (decrease) in accounts payable, accrued expenses and other liabilities |
(10,267 | ) | (2,691 | ) | (11,050 | ) | 760 | |||||||||
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Net cash provided by (used in) operating activities |
(4,413 | ) | 7,841 | 4,706 | 17,043 | |||||||||||
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Cash flows from investing activities: |
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Purchases of property and equipment and intangibles |
(1,840 | ) | (1,033 | ) | (6,542 | ) | (7,078 | ) | ||||||||
Purchase of a business |
(37 | ) | | (588 | ) | | ||||||||||
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Net cash provided by (used in) investing activities |
(1,877 | ) | (1,033 | ) | (7,130 | ) | (7,078 | ) | ||||||||
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Cash flows from financing activities: |
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Proceeds from issuance of common stock |
| 14 | 42 | 233 | ||||||||||||
Payments on long-term debt |
| (358,491 | ) | (1,000 | ) | (362,949 | ) | |||||||||
Termination of swap agreements |
| (4,039 | ) | | (4,039 | ) | ||||||||||
Proceeds from borrowings on long-term debt |
| 394,888 | | 394,888 | ||||||||||||
Payments of deferred debt and offering costs |
| (9,691 | ) | (29 | ) | (10,554 | ) | |||||||||
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Net cash provided by (used in) financing activities |
| 22,681 | (987 | ) | 17,579 | |||||||||||
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Net increase (decrease) in cash and cash equivalents |
(6,290 | ) | 29,489 | (3,411 | ) | 27,544 | ||||||||||
Cash and cash equivalents: |
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Beginning |
75,269 | 25,721 | 72,390 | 27,666 | ||||||||||||
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Ending |
$ | 68,979 | $ | 55,210 | $ | 68,979 | $ | 55,210 | ||||||||
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Entravision Communications
Page 7 of 8
Entravision Communications Corporation
Reconciliation of Consolidated Adjusted EBITDA to Cash Flows From Operating Activities
(Unaudited; in thousands)
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 Ended September 30, |
Nine-Month Period Ended September 30, |
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2011 | 2010 | 2011 | 2010 | |||||||||||||
Consolidated adjusted EBITDA (1) |
$ | 15,125 | $ | 18,444 | $ | 41,132 | $ | 46,938 | ||||||||
Interest expense |
(9,444 | ) | (4,394 | ) | (28,346 | ) | (15,171 | ) | ||||||||
Interest income |
| 92 | 2 | 259 | ||||||||||||
Loss on debt extinguishment |
| (987 | ) | | (987 | ) | ||||||||||
Income tax (expense) benefit |
(1,952 | ) | (1,764 | ) | (4,321 | ) | (5,102 | ) | ||||||||
Amortization of syndication contracts |
(154 | ) | (290 | ) | (1,297 | ) | (840 | ) | ||||||||
Payments on syndication contracts |
551 | 732 | 1,506 | 2,141 | ||||||||||||
Non-cash stock-based compensation included in direct operating expenses |
(51 | ) | (104 | ) | (155 | ) | (312 | ) | ||||||||
Non-cash stock-based compensation included in selling, general and administrative expenses |
(157 | ) | (147 | ) | (472 | ) | (442 | ) | ||||||||
Non-cash stock-based compensation included in corporate expenses |
(287 | ) | (357 | ) | (732 | ) | (849 | ) | ||||||||
Depreciation and amortization |
(5,015 | ) | (4,867 | ) | (14,172 | ) | (14,464 | ) | ||||||||
Other income (loss) |
| | 687 | | ||||||||||||
Equity in net income (loss) of nonconsolidated affiliates |
| 50 | | 16 | ||||||||||||
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Net income (loss) |
(1,384 | ) | 6,408 | (6,168 | ) | 11,187 | ||||||||||
Depreciation and amortization |
5,015 | 4,867 | 14,172 | 14,464 | ||||||||||||
Deferred income taxes |
1,827 | 1,587 | 3,444 | 4,214 | ||||||||||||
Amortization of debt issue costs |
556 | 487 | 1,642 | 695 | ||||||||||||
Amortization of syndication contracts |
154 | 290 | 1,297 | 840 | ||||||||||||
Payments on syndication contracts |
(551 | ) | (732 | ) | (1,506 | ) | (2,141 | ) | ||||||||
Equity in net (income) loss of nonconsolidated affiliate |
| (50 | ) | | (16 | ) | ||||||||||
Non-cash stock-based compensation |
495 | 608 | 1,359 | 1,603 | ||||||||||||
Other (income) loss |
| | (687 | ) | | |||||||||||
Non-cash expenses related to debt extinguishment |
| 934 | | 934 | ||||||||||||
Change in fair value of interest rate swap agreements |
| (4,135 | ) | | (12,188 | ) | ||||||||||
Changes in assets and liabilities, net of effect of acquisitions and dispositions: |
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(Increase) decrease in restricted cash |
| (1,023 | ) | 809 | (1,023 | ) | ||||||||||
(Increase) decrease in accounts receivable |
50 | 1,765 | 1,655 | (1,860 | ) | |||||||||||
(Increase) decrease in prepaid expenses and other assets |
(308 | ) | (474 | ) | (261 | ) | (426 | ) | ||||||||
Increase (decrease) in accounts payable, accrued expenses and other liabilities |
(10,267 | ) | (2,691 | ) | (11,050 | ) | 760 | |||||||||
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Cash flows from operating activities |
$ | (4,413 | ) | $ | 7,841 | $ | 4,706 | $ | 17,043 | |||||||
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(1) | Consolidated adjusted EBITDA is defined on page 1. |
Entravision Communications
Page 8 of 8
Entravision Communications Corporation
Reconciliation of Free Cash Flow to Net Income (Loss)
(Unaudited; in thousands)
The most directly comparable GAAP financial measure is net income (loss). A reconciliation of this non-GAAP measure to net income (loss) for each of the periods presented is as follows:
Three-Month Period Ended September 30, |
Nine-Month Period Ended September 30, |
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2011 | 2010 | 2011 | 2010 | |||||||||||||
Consolidated adjusted EBITDA (1) |
$ | 15,125 | $ | 18,444 | $ | 41,132 | $ | 46,938 | ||||||||
Net interest expense (1) |
8,888 | 9,125 | 26,702 | 27,579 | ||||||||||||
Cash paid for income taxes |
125 | 177 | 877 | 888 | ||||||||||||
Capital expenditures (2) |
1,840 | 1,033 | 5,864 | 5,828 | ||||||||||||
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Free cash flow (1) |
4,272 | 8,109 | 7,689 | 12,643 | ||||||||||||
Capital expenditures (2) |
1,840 | 1,033 | 5,864 | 5,828 | ||||||||||||
Non-cash interest expense relating to amortization of debt finance costs and interest rate swap agreements |
(556 | ) | 4,823 | (1,642 | ) | 12,667 | ||||||||||
Loss on debt extinguishment |
| (987 | ) | | (987 | ) | ||||||||||
Non-cash income tax expense |
(1,827 | ) | (1,587 | ) | (3,444 | ) | (4,214 | ) | ||||||||
Amortization of syndication contracts |
(154 | ) | (290 | ) | (1,297 | ) | (840 | ) | ||||||||
Payments on syndication contracts |
551 | 732 | 1,506 | 2,141 | ||||||||||||
Non-cash stock-based compensation included in direct operating expenses |
(51 | ) | (104 | ) | (155 | ) | (312 | ) | ||||||||
Non-cash stock-based compensation included in selling, general and administrative expenses |
(157 | ) | (147 | ) | (472 | ) | (442 | ) | ||||||||
Non-cash stock-based compensation included in corporate expenses |
(287 | ) | (357 | ) | (732 | ) | (849 | ) | ||||||||
Depreciation and amortization |
(5,015 | ) | (4,867 | ) | (14,172 | ) | (14,464 | ) | ||||||||
Impairment charge |
| | 687 | | ||||||||||||
Equity in net income (loss) of nonconsolidated affiliates |
| 50 | | 16 | ||||||||||||
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Net income (loss) |
$ | (1,384 | ) | $ | 6,408 | $ | (6,168 | ) | $ | 11,187 | ||||||
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(1) | Consolidated adjusted EBITDA, net interest expense and free cash flow are defined on page 1. |
(2) | Capital expenditures is not part of the consolidated statement of operations. |
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