EX-99.1 2 d529369dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

ENTRAVISION COMMUNICATIONS CORPORATION REPORTS

FIRST QUARTER 2013 RESULTS

SANTA MONICA, CALIFORNIA, May 2, 2013 – Entravision Communications Corporation (NYSE: EVC) today reported financial results for the three-month period ended March 31, 2013.

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 March 31,
 
     2013     2012     % Change  

Net revenue

   $ 49,087      $ 46,524        6

Operating expenses (1)

     31,908        31,006        3

Corporate expenses (2)

     4,497        3,881        16

Consolidated adjusted EBITDA (3)

     13,380        11,624        15

Free cash flow (4)

   $ 3,438      $ 1,444        138

Free cash flow per share (4)

   $ 0.04      $ 0.02        100

Net income (loss) applicable to common stockholders

   $ (957   $ (3,395     (72 )% 

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

   $ (0.01   $ (0.04     (75 )% 

Weighted average common shares outstanding, basic and diluted

     86,459,017        85,806,080     

 

(1) Operating expenses include direct operating, selling, general and administrative expenses. Included in operating expenses are $0.2 million and $0.1 million of non-cash stock-based compensation for the three-month periods ended March 31, 2013 and 2012, respectively. Operating expenses do not include corporate expenses, depreciation and amortization, impairment charge, gain (loss) on sale of assets, gain (loss) on debt extinguishment and other income (loss).
(2) Corporate expenses include $0.7 million and $0.1 million of non-cash stock-based compensation for the three-month periods ended March 31, 2013 and 2012, 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, other income (loss), gain (loss) on debt extinguishment, 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 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 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, other income (loss), gain (loss) on debt extinguishment, 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 $324 million aggregate principal amount of 8.750% senior secured first lien notes due 2017 (the “Notes”), and less interest income. Free cash flow per share is defined as free cash flow divided by the basic or diluted weighted average common shares outstanding.


Entravision Communications

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Commenting on the Company’s earnings results, Walter F. Ulloa, Chairman and Chief Executive Officer, said, “During the first quarter, we achieved revenue growth driven by increases in both our television and radio segments. Core revenue (excluding retransmission consent revenue and political advertising revenue) from our television and radio segments outperformed their respective industry averages, and we improved our free cash flow over the first quarter of 2012. Our audience shares remain strong in the nation’s 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.”

Financial Results

Three-Month Period Ended March 31, 2013 Compared to Three-Month Period Ended

March 31, 2012

(Unaudited)

 

     Three-Month Period
Ended March 31,
 
     2013     2012     % Change  

Net revenue

   $ 49,087      $ 46,524        6

Operating expenses (1)

     31,908        31,006        3

Corporate expenses (1)

     4,497        3,881        16

Depreciation and amortization

     3,955        4,347        (9 )% 
  

 

 

   

 

 

   

Operating income (loss)

     8,727        7,290        20

Interest expense, net

     (7,777     (9,096     (15 )% 
  

 

 

   

 

 

   

Income (loss) before income taxes

     950        (1,806     NM   

Income tax (expense) benefit

     (1,907     (1,589     20
  

 

 

   

 

 

   

Net income (loss)

   $ (957   $ (3,395     (72 )% 
  

 

 

   

 

 

   

 

(1) Operating expenses and corporate expenses are defined on page 1.

Net revenue increased to $49.1 million for the three-month period ended March 31, 2013 from $46.5 million for the three-month period ended March 31, 2012, an increase of $2.6 million. Of the overall increase, $1.8 million came from our television segment and was primarily attributable to an increase in local advertising revenue and an increase in retransmission consent revenue. Additionally, $0.8 million of the overall increase came from our radio segment and was primarily attributable to an increase in national advertising revenue.

Operating expenses increased to $31.9 million for the three-month period ended March 31, 2013 from $31.0 million for the three-month period ended March 31, 2012, an increase of $0.9 million. The increase was primarily attributable to an increase in expenses associated with the increase in net revenue and an increase in salary expense, partially offset by a decrease in bad debt expense.

Corporate expenses increased to $4.5 million for the three-month period ended March 31, 2013 from $3.9 million for the three-month period ended March 31, 2012, an increase of $0.6 million. The increase was primarily attributable to an increase in non-cash stock-based compensation expense.


Entravision Communications

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Segment Results

The following represents selected unaudited segment information:

 

     Three-Month Period
Ended March 31,
 
     2013      2012      % Change  

Net Revenue

        

Television

   $ 34,952       $ 33,164         5

Radio

   $ 14,135       $ 13,360         6
  

 

 

    

 

 

    

Total

   $ 49,087       $ 46,524         6

Operating Expenses (1)

        

Television

   $ 18,914       $ 18,535         2

Radio

     12,994         12,471         4
  

 

 

    

 

 

    

Total

   $ 31,908       $ 31,006         3

Corporate Expenses (1)

   $ 4,497       $ 3,881         16

Consolidated adjusted EBITDA (1)

   $ 13,380       $ 11,624         15

 

(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 2013 first quarter results on May 2, 2013 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 Company’s 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 Latino 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 Univision’s UniMas network, with television stations in 19 of the nation’s top 50 Latino markets. The company also operates one of the nation’s largest groups of primarily Spanish-language radio stations, consisting of 49 owned and operated radio stations. Additionally, Entravision has a variety of cross-platform digital content and sales offerings designed to capitalize on the company’s leadership position within the Latino 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 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.

# # #

(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

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Entravision Communications Corporation

Consolidated Balance Sheets

(In thousands)

 

     March 31,
2013
    December 31,
2012
 
     (Unaudited)        
ASSETS   

Current assets

    

Cash and cash equivalents

   $ 32,315      $ 36,130   

Trade receivables

     46,361        48,030   

Prepaid expenses and other current assets

     4,960        4,245   
  

 

 

   

 

 

 

Total current assets

     83,636        88,405   

Property and equipment, net

     60,042        61,435   

Intangible assets subject to amortization, net

     21,714        22,349   

Intangible assets not subject to amortization

     220,701        220,701   

Goodwill

     36,647        36,647   

Other assets

     8,072        8,514   
  

 

 

   

 

 

 

Total assets

   $ 430,812      $ 438,051   
  

 

 

   

 

 

 
LIABILITIES AND STOCKHOLDERS’ EQUITY   

Current liabilities

    

Current maturities of long-term debt

   $ 200      $ 150   

Advances payable, related parties

     118        118   

Accounts payable and accrued expenses

     29,855        39,158   
  

 

 

   

 

 

 

Total current liabilities

     30,173        39,426   

Long-term debt, less current maturities

     340,748        340,664   

Other long-term liabilities

     7,180        7,359   

Deferred income taxes

     47,043        45,201   
  

 

 

   

 

 

 

Total liabilities

     425,144        432,650   
  

 

 

   

 

 

 

Stockholders’ equity

    

Class A common stock

     6        5   

Class B common stock

     2        2   

Class U common stock

     1        1   

Additional paid-in capital

     932,037        930,814   

Accumulated deficit

     (926,378     (925,421
  

 

 

   

 

 

 

Total stockholders’ equity

     5,668        5,401   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 430,812      $ 438,051   
  

 

 

   

 

 

 


Entravision Communications

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Entravision Communications Corporation

Consolidated Statements of Operations

(In thousands, except share and per share data)

(Unaudited)

 

     Three-Month Period
Ended March 31,
 
     2013     2012  

Net revenue

   $ 49,087      $ 46,524   

Expenses:

    

Direct operating expenses

     24,225        21,634   

Selling, general and administrative expenses

     7,683        9,372   

Corporate expenses

     4,497        3,881   

Depreciation and amortization

     3,955        4,347   
  

 

 

   

 

 

 
     40,360        39,234   
  

 

 

   

 

 

 

Operating income (loss)

     8,727        7,290   

Interest expense

     (7,784     (9,100

Interest income

     7        4   
  

 

 

   

 

 

 

Income (loss) before income taxes

     950        (1,806

Income tax (expense) benefit

     (1,907     (1,589
  

 

 

   

 

 

 

Net income (loss) applicable to common stockholders

   $ (957   $ (3,395
  

 

 

   

 

 

 

Basic and diluted earnings per share:

    

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

   $ (0.01   $ (0.04
  

 

 

   

 

 

 

Weighted average common shares outstanding, basic and diluted

     86,459,017        85,806,080   
  

 

 

   

 

 

 


Entravision Communications

Page 6 of 8

 

Entravision Communications Corporation

Consolidated Statements of Cash Flows

(In thousands; unaudited)

 

     Three-Month Period
Ended March 31,
 
     2013     2012  

Cash flows from operating activities:

    

Net income (loss)

   $ (957   $ (3,395

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

    

Depreciation and amortization

     3,955        4,347   

Deferred income taxes

     1,842        1,106   

Amortization of debt issue costs

     455        563   

Amortization of syndication contracts

     151        193   

Payments on syndication contracts

     (325     (467

Non-cash stock-based compensation

     872        261   

Changes in assets and liabilities:

    

(Increase) decrease in accounts receivable

     1,916        3,269   

(Increase) decrease in prepaid expenses and other assets

     (828     (644

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

     (8,692     (11,539
  

 

 

   

 

 

 

Net cash provided by (used in) operating activities

     (1,611     (6,306
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Purchases of property and equipment and intangibles

     (2,555     (1,164
  

 

 

   

 

 

 

Net cash provided by (used in) investing activities

     (2,555     (1,164
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Proceeds from issuance of common stock

     351        —      

Payments of deferred debt and offering costs

     —           (80
  

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     351        (80
  

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     (3,815     (7,550

Cash and cash equivalents:

    

Beginning

     36,130        58,719   
  

 

 

   

 

 

 

Ending

   $ 32,315      $ 51,169   
  

 

 

   

 

 

 


Entravision Communications

Page 7 of 8

 

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
Ended March 31,
 
     2013     2012  

Consolidated adjusted EBITDA (1)

   $ 13,380      $ 11,624   

Interest expense

     (7,784     (9,100

Interest income

     7        4   

Income tax (expense) benefit

     (1,907     (1,589

Amortization of syndication contracts

     (151     (193

Payments on syndication contracts

     325        467   

Non-cash stock-based compensation included in direct operating expenses

     (184     (13

Non-cash stock-based compensation included in selling, general and administrative expenses

     —          (109

Non-cash stock-based compensation included in corporate expenses

     (688     (139

Depreciation and amortization

     (3,955     (4,347
  

 

 

   

 

 

 

Net income (loss)

     (957     (3,395

Depreciation and amortization

     3,955        4,347   

Deferred income taxes

     1,842        1,106   

Amortization of debt issue costs

     455        563   

Amortization of syndication contracts

     151        193   

Payments on syndication contracts

     (325     (467

Non-cash stock-based compensation

     872        261   

Changes in assets and liabilities, net of effect of acquisitions and dispositions:

    

(Increase) decrease in accounts receivable

     1,916        3,269   

(Increase) decrease in prepaid expenses and other assets

     (828     (644

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

     (8,692     (11,539
  

 

 

   

 

 

 

Cash flows from operating activities

   $ (1,611   $ (6,306
  

 

 

   

 

 

 

 

(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)

(In thousands; unaudited)

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 March 31,
 
     2013     2012  

Consolidated adjusted EBITDA (1)

   $ 13,380      $ 11,624   

Net interest expense (1)

     7,322        8,533   

Cash paid (refunded) for income taxes

     65        483   

Capital expenditures (2)

     2,555        1,164   
  

 

 

   

 

 

 

Free cash flow (1)

     3,438        1,444   

Capital expenditures (2)

     2,555        1,164   

Amortization of debt issue costs

     (455     (563

Non-cash income tax expense

     (1,842     (1,106

Amortization of syndication contracts

     (151     (193

Payments on syndication contracts

     325        467   

Non-cash stock-based compensation included in direct operating expenses

     (184     (13

Non-cash stock-based compensation included in selling, general and administrative expenses

     —          (109

Non-cash stock-based compensation included in corporate expenses

     (688     (139

Depreciation and amortization

     (3,955     (4,347
  

 

 

   

 

 

 

Net income (loss)

   $ (957   $ (3,395
  

 

 

   

 

 

 

 

(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.