EX-99.1 2 d684243dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

ENTRAVISION COMMUNICATIONS CORPORATION REPORTS

FOURTH QUARTER AND FULL YEAR 2013 RESULTS

- Announces quarterly cash dividend of $0.025 per share -

SANTA MONICA, CALIFORNIA, February 27, 2014 – Entravision Communications Corporation (NYSE: EVC) today reported financial results for the three- and twelve-month periods ended December 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 9. Unaudited financial highlights are as follows:

 

     Three Months Ended
December 31,
    Twelve Months Ended
December 31,
 
   2013      2012      % Change     2013     2012      % Change  
               

Net revenue

   $ 60,093       $ 63,752         (6 )%    $ 223,916      $ 223,253         0

Operating expenses (1)

     35,931         33,671         7     135,242        130,074         4

Corporate expenses (2)

     5,527         5,449         1     19,771        17,976         10

Consolidated adjusted EBITDA (3)

     19,762         25,342         (22 )%      73,003        76,863         (5 )% 

Free cash flow (4)

   $ 13,499       $ 15,626         (14 )%    $ 39,051      $ 34,835         12

Free cash flow per share, basic (4)

   $ 0.15       $ 0.18         (17 )%    $ 0.45      $ 0.41         10

Free cash flow per share, diluted (4)

   $ 0.15       $ 0.18         (17 )%    $ 0.45      $ 0.40         13

Net income (loss) applicable to common stockholders

   $ 9,521       $ 7,697         24   $ (7,747   $ 13,601         NM   

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

   $ 0.11       $ 0.09         22   $ (0.09   $ 0.16         NM   

Weighted average common shares outstanding, basic

     88,086,641         85,945,116           87,401,123        85,882,646      

Weighted average common shares outstanding, diluted

     90,626,583         86,593,768           87,401,123        86,314,206      

 

(1) Operating expenses include direct operating, selling, general and administrative expenses. Included in operating expenses are $0.3 million of non-cash stock-based compensation for each of the three-month periods ended December 31, 2013 and 2012, and $1.1 million and $0.9 million of non-cash stock-based compensation for the twelve-month periods ended December 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 $1.0 million and $0.6 million of non-cash stock-based compensation for the three-month periods ended December 31, 2013 and 2012, respectively, and $3.7 million and $1.7 million of non-cash stock-based compensation for the twelve-month periods ended December 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 (the “Notes”), which were fully redeemed on August 2, 2013, 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

Page 2 of 10

Commenting on the Company’s earnings results, Walter F. Ulloa, Chairman and Chief Executive Officer, said, “During the fourth quarter, we achieved continued growth in core advertising revenue (excluding retransmission consent revenue and political advertising revenue) as our television segment once again outperformed the television broadcast industry. Continuing the trend of the last several years, we also experienced an increase in retransmission consent revenue. Nonetheless, our improved core revenue performance was offset by decreased political revenue, which benefited from the presidential election last year, and was not material in 2013. As a result, net revenue was lower in the quarter. However, we improved our net income over the fourth quarter of 2012 as we benefited from the successful refinancing of our debt. Also for the year 2013, we are particularly pleased to have achieved nominal revenue growth over 2012, during which we benefited from a record $17 million in political advertising revenue. 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.”

Announces Quarterly Cash Dividend

The Company announced today that its Board of Directors has approved a quarterly cash dividend to shareholders of $0.025 per share of the Company’s Class A, Class B and Class U common stock, in an aggregate amount of approximately $2.2 million. The quarterly dividend will be payable on March 31, 2014 to shareholders of record as of the close of business on March 14, 2014, and the common stock will trade ex-dividend on March 12, 2014. As previously announced, the Company currently anticipates that future cash dividends will be paid on a quarterly basis. Any decision to pay future cash dividends will be subject to further approval by the Board.

Interest Rate Swaps, Prepayment of Outstanding Debt and Cash Dividend

On December 16, 2013, the Company entered into three forward-starting interest rate swap agreements with an aggregate notional amount of $186.0 million, as a requirement under the Company’s senior secured term loan credit facility entered into on May 31, 2013. The swaps take effect on December 31, 2015 with a maturity date of December 31, 2018. During that period, the swaps provide for a fixed interest rate of 5.23% on $186.0 million of the Company’s outstanding debt.

During the fourth quarter of 2013, the Company prepaid $10 million of term loans under the Company’s senior secured term loan credit facility.

Also during the fourth quarter of 2013, the Company declared and paid a cash dividend of $0.125 per share to shareholders of the Company’s Class A, Class B and Class U common stock. The dividend consisted of a special cash dividend of $0.10 per share and a quarterly cash dividend of $0.025 per share. The total amount of cash disbursed for the dividends was $11.0 million.


Entravision Communications

Page 3 of 10

Financial Results

Note Regarding Preliminary Quarterly Results

In connection with the preparation of our financial statements for the three- and twelve-month periods ended December 31, 2013, we are currently in the process of finalizing the provision for income taxes, specifically as it relates to the continued need for a valuation allowance against our deferred tax assets. We intend to complete this process in time to permit a timely filing of our annual report for the period ended December 31, 2013.

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

December 31, 2012

(Unaudited)

 

     Three Months Ended
December 31,
 
     2013     2012     % Change  

Net revenue

   $ 60,093      $ 63,752        (6 )% 

Operating expenses (1)

     35,931        33,671        7

Corporate expenses (1)

     5,527        5,449        1

Depreciation and amortization

     3,565        3,990        (11 )% 
  

 

 

   

 

 

   

Operating income (loss)

     15,070        20,642        (27 )% 

Interest expense, net

     (3,598     (8,614     (58 )% 

Gain (loss) on debt extinguishment

     (141 )     (2,513 )     (94 )% 
  

 

 

   

 

 

   

Income (loss) before income taxes

     11,331        9,515        19

Income tax (expense) benefit

     (1,810     (1,818     (0 )% 
  

 

 

   

 

 

   

Net income (loss)

   $ 9,521      $ 7,697        24
  

 

 

   

 

 

   

 

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

Net revenue decreased to $60.1 million for the three-month period ended December 31, 2013 from $63.8 million for the three-month period ended December 31, 2012, a decrease of $3.7 million. Of the overall decrease, $2.7 million was generated by our television segment and was primarily attributable to a decrease in political advertising revenue, which was not material in 2013, partially offset by increases in local advertising revenue and retransmission consent revenue. Additionally, $1.0 million of the overall decrease was generated by our radio segment and was primarily attributable to a decrease in political advertising revenue, which was not material in 2013, partially offset by an increase in local advertising revenue.

Operating expenses increased to $35.9 million for the three-month period ended December 31, 2013 from $33.7 million for the three-month period ended December 31, 2012, an increase of $2.2 million. The increase was primarily attributable to an increase in performance based commissions and bonuses associated with the increase in local revenue, and an increase in salary expense.

Corporate expenses increased to $5.5 million for the three-month period ended December 31, 2013 from $5.4 million for the three-month period ended December 31, 2012, an increase of $0.1 million. The increase was primarily attributable to an increase in non-cash compensation expense.


Entravision Communications

Page 4 of 10

Twelve Months Ended December 31, 2013 Compared to Twelve Months Ended December 31, 2012

(Unaudited)

 

     Twelve Months Ended
December 31,
 
     2013     2012     % Change  

Net revenue

   $ 223,916      $ 223,253        0

Operating expenses (1)

     135,242        130,074        4

Corporate expenses (1)

     19,771        17,976        10

Depreciation and amortization

     14,953        16,426        (9 )% 
  

 

 

   

 

 

   

Operating income (loss)

     53,950        58,777        (8 )% 

Interest expense, net

     (24,587     (35,321     (30 )% 

Gain (loss) on debt extinguishment

     (29,675 )     (3,743 )     NM   
  

 

 

   

 

 

   

Income (loss) before income taxes

     (312     19,713        NM   

Income tax (expense) benefit

     (7,435     (6,112     22
  

 

 

   

 

 

   

Net income (loss)

   $ (7,747   $ 13,601        NM   
  

 

 

   

 

 

   

 

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

Net revenue increased to $223.9 million for the year ended December 31, 2013 from $223.3 million for the year ended December 31, 2012, an increase of $0.6 million. Of the overall increase, $0.5 million was generated by our radio segment and was primarily attributable to an increase in local advertising revenue, partially offset by a decrease in political advertising revenue, which was not material in 2013. Additionally, the balance of the overall increase was generated by our television segment and was primarily attributable to increases in local advertising revenue and retransmission consent revenue, partially offset by a decrease in political advertising revenue, which was not material in 2013.

Operating expenses increased to $135.2 million for the year ended December 31, 2013 from $130.1 million for the year ended December 31, 2012, an increase of $5.1 million. The increase was primarily attributable to an increase in performance based commissions and bonuses associated with the increase in local revenue, and an increase in salary expense, partially offset by a decrease in bad debt expense.

Corporate expenses increased to $19.8 million for the year ended December 31, 2013 from $18.0 million for the year ended December 31, 2012, an increase of $1.8 million. The increase was primarily attributable to an increase in non-cash stock-based compensation expense.

Loss on debt extinguishment increased to $29.7 million for the year ended December 31, 2013 from $3.7 million for the year ended December 31, 2012, an increase of $26.0 million. The increase was primarily attributable to the premium associated with the redemption of our Notes, the unamortized bond discount, and finance costs.


Entravision Communications

Page 5 of 10

Segment Results

The following represents selected unaudited segment information:

 

     Three Months Ended
December 31,
    Twelve Months Ended
December 31,
 
   2013      2012      % Change     2013      2012      % Change  

Net Revenue

                

Television

   $ 42,705       $ 45,373         (6 )%    $ 156,994       $ 156,839         0

Radio

     17,388         18,379         (5 )%      66,922         66,414         1
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total

   $ 60,093       $ 63,752         (6 )%    $ 223,916       $ 223,253         0

Operating Expenses (1)

                

Television

   $ 20,901       $ 19,921         5   $ 79,420       $ 77,235         3

Radio

     15,030         13,750         9     55,822         52,839         6
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total

   $ 35,931       $ 33,671         7   $ 135,242       $ 130,074         4

Corporate Expenses (1)

   $ 5,527       $ 5,449         1   $ 19,771       $ 17,976         10

Consolidated adjusted EBITDA (1)

   $ 19,762       $ 25,342         (22 )%    $ 73,003       $ 76,863         (5 )% 

 

(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 fourth quarter and full year results on February 27, 2014 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 20 of the nation’s top 50 Latino markets. The company owns and/or operates 58 primary television stations and 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

Page 6 of 10

Entravision Communications Corporation

Consolidated Balance Sheets

(In thousands)

 

     December 31,
2013
    December 31,
2012
 
ASSETS             

Current assets

    

Cash and cash equivalents

   $ 43,822      $ 36,130   

Trade receivables, net of allowance for doubtful accounts

     57,043        48,030   

Prepaid expenses and other current assets

     4,518        4,245   
  

 

 

   

 

 

 

Total current assets

     105,383        88,405   

Property and equipment, net

     58,765        61,435   

Intangible assets subject to amortization, net

     19,812        22,349   

Intangible assets not subject to amortization

     220,701        220,701   

Goodwill

     36,647        36,647   

Other assets

     7,404        8,514   
  

 

 

   

 

 

 

Total assets

   $ 448,712      $ 438,051   
  

 

 

   

 

 

 
LIABILITIES AND STOCKHOLDERS’ EQUITY             

Current liabilities

    

Current maturities of long-term debt

   $ 3,750      $ 150   

Advances payable, related parties

     118        118   

Accounts payable and accrued expenses

     31,306        39,158   
  

 

 

   

 

 

 

Total current liabilities

     35,174        39,426   

Long-term debt, less current maturities (net of bond discount of $0 and $2,982)

     360,313        340,664   

Other long-term liabilities

     6,786        7,359   

Deferred income taxes

     51,987        45,201   
  

 

 

   

 

 

 

Total liabilities

     454,260        432,650   
  

 

 

   

 

 

 

Stockholders’ equity (deficit)

    

Class A common stock

     6        5   

Class B common stock

     2        2   

Class U common stock

     1        1   

Additional paid-in capital

     927,377        930,814   

Accumulated deficit

     (933,168     (925,421

Accumulated other comprehensive income

     234        —     
  

 

 

   

 

 

 

Total stockholders’ equity (deficit)

     (5,548     5,401   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity (deficit)

   $ 448,712      $ 438,051   
  

 

 

   

 

 

 


Entravision Communications

Page 7 of 10

Entravision Communications Corporation

Consolidated Statements of Operations

(In thousands, except share and per share data)

(Unaudited)

 

     Three-Month Period
Ended December 31,
    Twelve-Month Period
Ended December 31,
 
   2013     2012     2013     2012  

Net revenue

   $ 60,093      $ 63,752      $ 223,916      $ 223,253   
  

 

 

   

 

 

   

 

 

   

 

 

 

Expenses:

        

Direct operating expenses

     27,613        24,453        103,686        92,256   

Selling, general and administrative expenses

     8,318        9,218        31,556        37,818   

Corporate expenses

     5,527        5,449        19,771        17,976   

Depreciation and amortization

     3,565        3,990        14,953        16,426   
  

 

 

   

 

 

   

 

 

   

 

 

 
     45,023        43,110        169,966        164,476   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

     15,070        20,642        53,950        58,777   

Interest expense

     (3,614     (8,677     (24,631     (35,407

Interest income

     16        63        44        86   

Gain (loss) on debt extinguishment

     (141     (2,513     (29,675     (3,743
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     11,331        9,515        (312     19,713   

Income tax (expense) benefit

     (1,810     (1,818     (7,435     (6,112
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) applicable to common stockholders

   $ 9,521      $ 7,697      $ (7,747   $ 13,601   
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic and diluted earnings per share:

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

   $ 0.11      $ 0.09      $ (0.09   $ 0.16   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average common shares outstanding, basic

     88,086,641        85,945,116        87,401,123        85,882,646   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average common shares outstanding, diluted

     90,626,583        86,593,768        87,401,123        86,314,206   
  

 

 

   

 

 

   

 

 

   

 

 

 


Entravision Communications

Page 8 of 10

Entravision Communications Corporation

Consolidated Statements of Cash Flows

(In thousands; unaudited)

 

     Three-Month Period
Ended December 31,
    Twelve-Month Period
Ended December 31,
 
   2013     2012     2013     2012  

Cash flows from operating activities:

        

Net income (loss)

   $ 9,521      $ 7,697      $ (7,747   $ 13,601   

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

        

Depreciation and amortization

     3,565        3,990        14,953        16,426   

Deferred income taxes

     1,542        2,992        6,597        6,477   

Amortization of debt issue costs

     209        578        1,647        2,284   

Amortization of syndication contracts

     137        151        587        707   

Payments on syndication contracts

     (263     (329     (1,258     (1,698

Non-cash stock-based compensation

     1,253        888        4,771        2,651   

(Gain) loss on debt extinguishment

     141        2,513        29,675        3,743   

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

        

(Increase) decrease in accounts receivable

     (5,005     (229     (8,706     (3,740

(Increase) decrease in prepaid expenses and other assets

     814        1,377        (509     321   

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

     2,856        6,726        (7,255     (740
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) operating activities

     14,770        26,354        32,755        40,032   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from investing activities:

        

Purchases of property and equipment and intangibles

     (2,606     (3,354     (10,174     (9,856
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) investing activities

     (2,606     (3,354     (10,174     (9,856
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from financing activities:

        

Proceeds from issuance of common stock

     66        —          2,806        23   

Payments on long-term debt

     (10,937     (41,200     (375,984     (61,800

Dividend paid

     (11,014     (10,313     (11,014     (10,313

Proceeds from borrowings on long-term debt

     —          20,000        375,000        20,000   

Payments of capitalized debt offering and issuance costs

     (3     (595     (5,697     (675
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     (21,888     (32,108     (14,889     (52,765
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     (9,724     (9,108     7,692        (22,589

Cash and cash equivalents:

        

Beginning

     53,546        45,238        36,130        58,719   
  

 

 

   

 

 

   

 

 

   

 

 

 

Ending

   $ 43,822      $ 36,130      $ 43,822      $ 36,130   
  

 

 

   

 

 

   

 

 

   

 

 

 


Entravision Communications

Page 9 of 10

Entravision Communications Corporation

Reconciliation of Consolidated Adjusted EBITDA to Cash Flows From Operating Activities

(In thousands; unaudited)

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

 

     Three-Month Period
Ended December 31,
    Twelve-Month Period
Ended December 31,
 
     2013     2012     2013     2012  

Consolidated adjusted EBITDA (1)

   $ 19,762      $ 25,342      $ 73,003      $ 76,863   

Interest expense

     (3,614     (8,677     (24,631     (35,407

Interest income

     16        63        44        86   

Gain (loss) on debt extinguishment

     (141     (2,513     (29,675     (3,743

Income tax (expense) benefit

     (1,810     (1,818     (7,435     (6,112

Amortization of syndication contracts

     (137     (151     (587     (707

Payments on syndication contracts

     263        329        1,258        1,698   

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

     (294     (45     (1,070     (146

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

     —          (221     —          (767

Non-cash stock-based compensation included in corporate expenses

     (959     (622     (3,701     (1,738

Depreciation and amortization

     (3,565     (3,990     (14,953     (16,426
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     9,521        7,697        (7,747     13,601   

Depreciation and amortization

     3,565        3,990        14,953        16,426   

Deferred income taxes

     1,542        2,992        6,597        6,477   

Amortization of debt issuance costs

     209        578        1,647        2,284   

Amortization of syndication contracts

     137        151        587        707   

Payments on syndication contracts

     (263     (329     (1,258     (1,698

Non-cash stock-based compensation

     1,253        888        4,771        2,651   

(Gain) loss on debt extinguishment

     141        2,513        29,675        3,743   

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

        

(Increase) decrease in accounts receivable

     (5,005     (229     (8,706     (3,740

(Increase) decrease in prepaid expenses and other assets

     814        1,377        (509     321   

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

     2,856        6,726        (7,255     (740
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in ) operating activities

   $ 14,770      $ 26,354      $ 32,755      $ 40,032   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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


Entravision Communications

Page 10 of 10

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 December 31,
    Twelve-Month Period
Ended December 31,
 
     2013     2012     2013     2012  

Consolidated adjusted EBITDA (1)

   $ 19,762      $ 25,342      $ 73,003      $ 76,863   

Net interest expense (1)

     3,389        8,036        22,940        33,037   

Cash paid for income taxes

     268        (1,174     838        (365

Capital expenditures (2)

     2,606        2,854        10,174        9,356   
  

 

 

   

 

 

   

 

 

   

 

 

 

Free cash flow (1)

     13,499        15,626        39,051        34,835   

Capital expenditures (2)

     2,606        2,854        10,174        9,356   

Non-cash interest (expense) income relating to amortization of debt finance costs

     (209     (578     (1,647     (2,284

Non-cash income tax (expense) benefit

     (1,542     (2,992     (6,597     (6,477

Gain (loss) on debt extinguishment

     (141     (2,513     (29,675     (3,743

Amortization of syndication contracts

     (137     (151     (587     (707

Payments on syndication contracts

     263        329        1,258        1,698   

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

     (294     (45     (1,070     (146

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

     —          (221     —          (767

Non-cash stock-based compensation included in corporate expenses

     (959     (622     (3,701     (1,738

Depreciation and amortization

     (3,565     (3,990     (14,953     (16,426
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ 9,521      $ 7,697      $ (7,747   $ 13,601   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(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.