Exhibit 99.1
ENTRAVISION COMMUNICATIONS CORPORATION REPORTS
SECOND QUARTER 2015 RESULTS
- Announces Quarterly Cash Dividend of $0.025 Per Share -
SANTA MONICA, CALIFORNIA, August 6, 2015 – Entravision Communications Corporation (NYSE: EVC) today reported financial results for the three- and six-month periods ended June 30, 2015.
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 10. Unaudited financial highlights are as follows:
|
|
Three-Month Period |
|
|
Six-Month Period |
|
||||||||||||||||||
|
|
Ended June 30, |
|
|
Ended June 30, |
|
||||||||||||||||||
|
|
2015 |
|
|
2014 |
|
|
% Change |
|
|
2015 |
|
|
2014 |
|
|
% Change |
|
||||||
|
Net revenue |
$ |
59,891 |
|
|
$ |
61,846 |
|
|
|
(3 |
)% |
|
$ |
119,441 |
|
|
$ |
114,502 |
|
|
|
4 |
% |
|
Cost of revenue - digital media (1) |
|
1,392 |
|
|
|
- |
|
|
|
100 |
% |
|
|
2,752 |
|
|
|
- |
|
|
|
100 |
% |
|
Operating expenses (2) |
|
37,528 |
|
|
|
35,001 |
|
|
|
7 |
% |
|
|
74,714 |
|
|
|
68,508 |
|
|
|
9 |
% |
|
Corporate expenses (3) |
|
5,050 |
|
|
|
5,261 |
|
|
|
(4 |
)% |
|
|
10,043 |
|
|
|
10,097 |
|
|
|
(1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated adjusted EBITDA (4) |
|
16,822 |
|
|
|
22,147 |
|
|
|
(24 |
)% |
|
|
33,664 |
|
|
|
37,132 |
|
|
|
(9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow (5) |
$ |
8,099 |
|
|
$ |
16,667 |
|
|
|
(51 |
)% |
|
$ |
18,357 |
|
|
$ |
26,020 |
|
|
|
(29 |
)% |
|
Free cash flow per share, basic (5) |
$ |
0.09 |
|
|
$ |
0.19 |
|
|
|
(53 |
)% |
|
$ |
0.21 |
|
|
$ |
0.29 |
|
|
|
(28 |
)% |
|
Free cash flow per share, diluted (5) |
$ |
0.09 |
|
|
$ |
0.18 |
|
|
|
(50 |
)% |
|
$ |
0.20 |
|
|
$ |
0.29 |
|
|
|
(31 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
5,241 |
|
|
$ |
8,735 |
|
|
|
(40 |
)% |
|
$ |
10,525 |
|
|
$ |
13,123 |
|
|
|
(20 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share, basic |
$ |
0.06 |
|
|
$ |
0.10 |
|
|
|
(40 |
)% |
|
$ |
0.12 |
|
|
$ |
0.15 |
|
|
|
(20 |
)% |
|
Net income (loss) per share, diluted |
$ |
0.06 |
|
|
$ |
0.10 |
|
|
|
(40 |
)% |
|
$ |
0.12 |
|
|
$ |
0.14 |
|
|
|
(14 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding, basic |
|
87,832,430 |
|
|
|
89,276,794 |
|
|
|
|
|
|
|
87,682,734 |
|
|
|
88,982,009 |
|
|
|
|
|
|
Weighted average common shares outstanding, diluted |
|
90,091,735 |
|
|
|
91,202,732 |
|
|
|
|
|
|
|
90,089,679 |
|
|
|
91,074,937 |
|
|
|
|
|
|
(1) |
Cost of revenue consists primarily of the costs of online media acquired from third-party publishers. Media cost is classified as cost of revenue in the period in which the corresponding revenue is recognized. |
|
(2) |
Operating expenses include direct operating, selling, general and administrative expenses. Included in operating expenses are $0.3 million and $0.1 million of non-cash stock-based compensation for the three-month periods ended June 30, 2015 and 2014, respectively, and $0.7 million and $0.2 million of non-cash stock-based compensation for the six-month periods ended June 30, 2015 and 2014, 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). |
|
(3) |
Corporate expenses include $0.6 million and $0.5 million of non-cash stock-based compensation for the three-month periods ended June 30, 2015 and 2014, respectively, and $1.1 million of non-cash stock-based compensation for each of the six-month periods ended June 30, 2015 and 2014. |
Entravision Communications
Page 2 of 11
|
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. |
|
(5) |
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, 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. |
Commenting on the Company’s earnings results, Walter F. Ulloa, Chairman and Chief Executive Officer, said, “During the second quarter, we faced challenging comparisons to last year’s second quarter, particularly in our television segment, when we benefited from World Cup and political advertising revenue. Nevertheless, we continued to increase our radio segment revenue and build our digital footprint through the acquisition of Pulpo Media in June 2014, which provides us with an integrated platform to allow advertisers and marketers to connect with Latino audiences. Looking ahead, we remain well positioned to build on our success in attracting Latino audiences, expanding our advertiser base and monetizing our reach to the benefit of our shareholders.”
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 September 30, 2015 to shareholders of record as of the close of business on September 15, 2015, and the common stock will trade ex-dividend on September 11, 2015. As previously announced, the Company currently anticipates that future cash dividends will be paid on a quarterly basis. However any decision to pay future cash dividends will be subject to approval by the Board.
Entravision Communications
Page 3 of 11
Three-Month Period Ended June 30, 2015 Compared to Three-Month Period Ended
June 30, 2014
(Unaudited)
|
|
Three-Month Period |
|
|||||||||
|
|
Ended June 30, |
|
|||||||||
|
|
2015 |
|
|
2014 |
|
|
% Change |
|
|||
|
Net revenue |
$ |
59,891 |
|
|
$ |
61,846 |
|
|
|
(3 |
)% |
|
Cost of revenue - digital media (1) |
|
1,392 |
|
|
|
- |
|
|
|
100 |
% |
|
Operating expenses (1) |
|
37,528 |
|
|
|
35,001 |
|
|
|
7 |
% |
|
Corporate expenses (1) |
|
5,050 |
|
|
|
5,261 |
|
|
|
(4 |
)% |
|
Depreciation and amortization |
|
3,958 |
|
|
|
3,503 |
|
|
|
13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
11,963 |
|
|
|
18,081 |
|
|
|
(34 |
)% |
|
Interest expense, net |
|
(3,245 |
) |
|
|
(3,456 |
) |
|
|
(6 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes |
|
8,718 |
|
|
|
14,625 |
|
|
|
(40 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (expense) benefit |
|
(3,477 |
) |
|
|
(5,890 |
) |
|
|
(41 |
)% |
|
Net income (loss) |
$ |
5,241 |
|
|
$ |
8,735 |
|
|
|
(40 |
)% |
|
(1) |
Cost of revenue, operating expenses and corporate expenses are defined on page 1. |
Net revenue decreased to $59.9 million for the three-month period ended June 30, 2015 from $61.8 million for the three-month period ended June 30, 2014, a decrease of $1.9 million. Of the overall decrease, approximately $6.7 million was attributed to our television segment and was primarily attributable to the absence of World Cup and significant political advertising revenue in 2015 compared to 2014, and a decrease in national advertising revenue, partially offset by increases in local advertising revenue and retransmission consent revenue. The overall decrease was partially offset by an increase of $0.9 million that was attributed to our radio segment and was primarily attributable to increases in local and national advertising revenue, partially offset by the absence of World Cup revenue in 2015 compared to 2014. Additionally, the overall decrease was partially offset by an increase of $3.9 million that was attributed to our digital segment, resulting from our acquisition of Pulpo in June 2014 and which did not contribute to revenue in the comparable period in 2014.
Operating expenses increased to $37.5 million for the three-month period ended June 30, 2015 from $35.0 million for the three-month period ended June 30, 2014, an increase of $2.5 million. The increase was primarily attributable to increased operating expenses of Pulpo, which we acquired in June 2014, and increases in rent expense, salary expense and employee benefits costs, partially offset by a decrease in expenses associated with the decrease in advertising revenue.
Corporate expenses decreased to $5.1 million for the three-month period ended June 30, 2015 from $5.3 million for the three-month period ended June 30, 2014, a decrease of $0.2 million. The decrease was primarily attributable to transaction costs associated with the acquisition of Pulpo in June 2014 that did not recur in 2015, partially offset by an increase in salary expense.
Cost of revenue was $1.4 million for the three-month period ended June 30, 2015 due to the acquisition of Pulpo in June 2014.
Entravision Communications
Page 4 of 11
Six-Month Period Ended June 30, 2015 Compared to Six-Month Period Ended
June 30, 2014
(Unaudited)
|
|
Six-Month Period |
|
|||||||||
|
|
Ended June 30, |
|
|||||||||
|
|
2015 |
|
|
2014 |
|
|
% Change |
|
|||
|
Net revenue |
$ |
119,441 |
|
|
$ |
114,502 |
|
|
|
4 |
% |
|
Cost of revenue - digital media (1) |
|
2,752 |
|
|
|
- |
|
|
|
100 |
% |
|
Operating expenses (1) |
|
74,714 |
|
|
|
68,508 |
|
|
|
9 |
% |
|
Corporate expenses (1) |
|
10,043 |
|
|
|
10,097 |
|
|
|
(1 |
)% |
|
Depreciation and amortization |
|
7,920 |
|
|
|
7,018 |
|
|
|
13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
24,012 |
|
|
|
28,879 |
|
|
|
(17 |
)% |
|
Interest expense, net |
|
(6,464 |
) |
|
|
(6,882 |
) |
|
|
(6 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes |
|
17,548 |
|
|
|
21,997 |
|
|
|
(20 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (expense) benefit |
|
(7,023 |
) |
|
|
(8,874 |
) |
|
|
(21 |
)% |
|
Net income (loss) |
$ |
10,525 |
|
|
$ |
13,123 |
|
|
|
(20 |
)% |
|
(1) |
Operating expenses and corporate expenses are defined on page 1. |
Net revenue increased to $119.4 million for the six-month period ended June 30, 2015 from $114.5 million for the six-month period ended June 30, 2014, an increase of $4.9 million. Of the overall increase, approximately $2.3 million was attributed to our radio segment and was primarily attributable to increases in local and national advertising revenue, partially offset by the absence of World Cup revenue in 2015 compared to 2014. Additionally, $7.6 million of the overall increase was attributed to our digital segment, resulting from our acquisition of Pulpo in June 2014 and which did not contribute to revenue in the comparable period in 2014. These increases were partially offset by a decrease of $5.0 million that was attributed to our television segment and was primarily attributable to the absence of World Cup and significant political advertising revenue in 2015 compared to 2014, and decreases in local and national advertising revenue, partially offset by approximately $5.0 million of revenue associated with television station channel modifications made by the Company in order to accommodate the operations of a telecommunications operator, and an increase in retransmission consent revenue.
Operating expenses increased to $74.7 million for the six-month period ended June 30, 2015 from $68.5 million for the six-month period ended June 30, 2014, an increase of $6.2 million. The increase was primarily attributable to increased operating expenses of Pulpo, which we acquired in June 2014, an increase in salary expense, and an increase in employee benefits costs and payroll taxes associated with the increase in salary expense.
Corporate expenses decreased to $10.0 million for the six-month period ended June 30, 2015 from $10.1 million for the six-month periods ended June 30, 2014, a decrease of $0.1 million. The decrease was primarily attributable to transaction costs associated with the acquisition of Pulpo in June 2014 that did not recur in 2015, partially offset by an increase in salary expense.
Cost of revenue was $2.8 million for the six-month period ended June 30, 2015 due to the acquisition of Pulpo in June 2014.
Entravision Communications
Page 5 of 11
The following represents selected unaudited segment information:
|
|
Three-Month Period |
|
|
Six-Month Period |
|
||||||||||||||||||
|
|
Ended June 30, |
|
|
Ended June 30, |
|
||||||||||||||||||
|
|
|
2015 |
|
|
|
2014 |
|
|
% Change |
|
|
|
2015 |
|
|
|
2014 |
|
|
% Change |
|
||
|
Net Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Television |
$ |
36,397 |
|
|
$ |
43,151 |
|
|
|
(16 |
)% |
|
$ |
75,899 |
|
|
$ |
80,892 |
|
|
|
(6 |
)% |
|
Radio |
|
19,585 |
|
|
|
18,695 |
|
|
|
5 |
% |
|
|
35,930 |
|
|
|
33,610 |
|
|
|
7 |
% |
|
Digital |
|
3,909 |
|
|
|
- |
|
|
|
100 |
% |
|
|
7,612 |
|
|
|
- |
|
|
|
100 |
% |
|
Total |
$ |
59,891 |
|
|
$ |
61,846 |
|
|
|
(3 |
)% |
|
$ |
119,441 |
|
|
$ |
114,502 |
|
|
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Revenue - digital media (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Digital |
$ |
1,392 |
|
|
$ |
- |
|
|
|
100 |
% |
|
$ |
2,752 |
|
|
$ |
- |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Television |
$ |
19,749 |
|
|
$ |
20,186 |
|
|
|
(2 |
)% |
|
$ |
39,483 |
|
|
$ |
39,637 |
|
|
|
(0 |
)% |
|
Radio |
|
15,420 |
|
|
|
14,815 |
|
|
|
4 |
% |
|
|
30,132 |
|
|
|
28,871 |
|
|
|
4 |
% |
|
Digital |
|
2,359 |
|
|
|
- |
|
|
|
100 |
% |
|
|
5,099 |
|
|
|
- |
|
|
|
100 |
% |
|
Total |
$ |
37,528 |
|
|
$ |
35,001 |
|
|
|
7 |
% |
|
$ |
74,714 |
|
|
$ |
68,508 |
|
|
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Expenses (1) |
$ |
5,050 |
|
|
$ |
5,261 |
|
|
|
(4 |
)% |
|
$ |
10,043 |
|
|
$ |
10,097 |
|
|
|
(1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated adjusted EBITDA (1) |
$ |
16,822 |
|
|
$ |
22,147 |
|
|
|
(24 |
)% |
|
$ |
33,664 |
|
|
$ |
37,132 |
|
|
|
(9 |
)% |
|
(1) |
Cost of revenue, operating expenses, corporate expenses, and consolidated adjusted EBITDA are defined on page 1. |
Entravision Communications Corporation will hold a conference call to discuss its 2015 second quarter results on August 6, 2015 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 media company serving Latino audiences and communities with an integrated platform of solutions and services that includes television, radio, digital media and data analytics to reach Latino audiences across the United States and Latin America. Entravision has 58 primary television stations, including in 20 of the nation’s top 50 Latino markets, and is the largest affiliate group of both the top-ranked Univision television network and Univision’s UniMás network. Entravision also operates one of the nation’s largest groups of primarily Spanish-language radio stations, consisting of 49 owned and operated radio stations, and Entravision Solutions, a national sales representation and marketing organization specializing in Spanish-language media platforms and radio networks. Entravision also offers a variety of digital media platforms and services, including digital content, digital advertising platforms, including the #1-ranked online advertising platform in Hispanic reach according to comScore Media Metrix®, and data analytics solutions designed to maximize the opportunity for advertisers and marketers to connect with the growing Latino consumer market. 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)
Entravision Communications
Page 6 of 11
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 7 of 11
Entravision Communications Corporation
Consolidated Balance Sheets
(In thousands; unaudited)
|
|
June 30, |
|
|
December 31, |
|
||
|
|
2015 |
|
|
2014 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
50,866 |
|
|
$ |
31,260 |
|
|
Trade receivables, net of allowance for doubtful accounts |
|
56,232 |
|
|
|
64,956 |
|
|
Deferred income taxes |
|
5,900 |
|
|
|
5,900 |
|
|
Prepaid expenses and other current assets |
|
5,350 |
|
|
|
5,295 |
|
|
Total current assets |
|
118,348 |
|
|
|
107,411 |
|
|
Property and equipment, net |
|
60,365 |
|
|
|
56,784 |
|
|
Intangible assets subject to amortization, net |
|
18,424 |
|
|
|
20,193 |
|
|
Intangible assets not subject to amortization |
|
220,701 |
|
|
|
220,701 |
|
|
Goodwill |
|
50,081 |
|
|
|
50,081 |
|
|
Deferred income taxes |
|
60,934 |
|
|
|
66,558 |
|
|
Other assets |
|
5,581 |
|
|
|
6,039 |
|
|
Total assets |
$ |
534,434 |
|
|
$ |
527,767 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Current maturities of long-term debt |
$ |
3,750 |
|
|
$ |
3,750 |
|
|
Advances payable, related parties |
|
118 |
|
|
|
118 |
|
|
Accounts payable and accrued expenses |
|
28,275 |
|
|
|
32,195 |
|
|
Total current liabilities |
|
32,143 |
|
|
|
36,063 |
|
|
Long-term debt, less current maturities |
|
334,688 |
|
|
|
336,563 |
|
|
Other long-term liabilities |
|
13,716 |
|
|
|
9,583 |
|
|
Total liabilities |
|
380,547 |
|
|
|
382,209 |
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
|
|
|
|
|
|
Class A common stock |
|
6 |
|
|
|
6 |
|
|
Class B common stock |
|
2 |
|
|
|
2 |
|
|
Class U common stock |
|
1 |
|
|
|
1 |
|
|
Additional paid-in capital |
|
911,161 |
|
|
|
912,161 |
|
|
Accumulated deficit |
|
(753,949 |
) |
|
|
(764,474 |
) |
|
Accumulated other comprehensive income (loss) |
|
(3,334 |
) |
|
|
(2,138 |
) |
|
Total stockholders' equity |
|
153,887 |
|
|
|
145,558 |
|
|
Total liabilities and stockholders' equity |
$ |
534,434 |
|
|
$ |
527,767 |
|
Entravision Communications
Page 8 of 11
Entravision Communications Corporation
Consolidated Statements of Operations
(In thousands, except share and per share data)
(Unaudited)
|
|
Three-Month Period |
|
|
Six-Month Period |
|
||||||||||
|
|
Ended June 30, |
|
|
Ended June 30, |
|
||||||||||
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue |
$ |
59,891 |
|
|
$ |
61,846 |
|
|
$ |
119,441 |
|
|
$ |
114,502 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue - digital media |
|
1,392 |
|
|
|
- |
|
|
|
2,752 |
|
|
|
- |
|
|
Direct operating expenses |
|
27,044 |
|
|
|
26,104 |
|
|
|
53,729 |
|
|
|
50,425 |
|
|
Selling, general and administrative expenses |
|
10,484 |
|
|
|
8,897 |
|
|
|
20,985 |
|
|
|
18,083 |
|
|
Corporate expenses |
|
5,050 |
|
|
|
5,261 |
|
|
|
10,043 |
|
|
|
10,097 |
|
|
Depreciation and amortization |
|
3,958 |
|
|
|
3,503 |
|
|
|
7,920 |
|
|
|
7,018 |
|
|
|
|
47,928 |
|
|
|
43,765 |
|
|
|
95,429 |
|
|
|
85,623 |
|
|
Operating income (loss) |
|
11,963 |
|
|
|
18,081 |
|
|
|
24,012 |
|
|
|
28,879 |
|
|
Interest expense |
|
(3,256 |
) |
|
|
(3,469 |
) |
|
|
(6,483 |
) |
|
|
(6,907 |
) |
|
Interest income |
|
11 |
|
|
|
13 |
|
|
|
19 |
|
|
|
25 |
|
|
Income (loss) before income taxes |
|
8,718 |
|
|
|
14,625 |
|
|
|
17,548 |
|
|
|
21,997 |
|
|
Income tax (expense) benefit |
|
(3,477 |
) |
|
|
(5,890 |
) |
|
|
(7,023 |
) |
|
|
(8,874 |
) |
|
Net income (loss) |
$ |
5,241 |
|
|
$ |
8,735 |
|
|
$ |
10,525 |
|
|
$ |
13,123 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share, basic |
$ |
0.06 |
|
|
$ |
0.10 |
|
|
$ |
0.12 |
|
|
$ |
0.15 |
|
|
Net income (loss) per share, diluted |
$ |
0.06 |
|
|
$ |
0.10 |
|
|
$ |
0.12 |
|
|
$ |
0.14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per common share |
$ |
0.03 |
|
|
$ |
0.03 |
|
|
$ |
0.05 |
|
|
$ |
0.05 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding, basic |
|
87,832,430 |
|
|
|
89,276,794 |
|
|
|
87,682,734 |
|
|
|
88,982,009 |
|
|
Weighted average common shares outstanding, diluted |
|
90,091,735 |
|
|
|
91,202,732 |
|
|
|
90,089,679 |
|
|
|
91,074,937 |
|
Entravision Communications
Page 9 of 11
Entravision Communications Corporation
Consolidated Statements of Cash Flows
(In thousands; unaudited)
|
|
Three-Month Period |
|
|
Six-Month Period |
|
||||||||||
|
|
Ended June 30, |
|
|
Ended June 30, |
|
||||||||||
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
5,241 |
|
|
$ |
8,735 |
|
|
$ |
10,525 |
|
|
$ |
13,123 |
|
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
3,958 |
|
|
|
3,503 |
|
|
|
7,920 |
|
|
|
7,018 |
|
|
Deferred income taxes |
|
3,411 |
|
|
|
5,796 |
|
|
|
6,370 |
|
|
|
8,291 |
|
|
Amortization of debt issue costs |
|
199 |
|
|
|
203 |
|
|
|
393 |
|
|
|
404 |
|
|
Amortization of syndication contracts |
|
85 |
|
|
|
122 |
|
|
|
171 |
|
|
|
244 |
|
|
Payments on syndication contracts |
|
(124 |
) |
|
|
(154 |
) |
|
|
(246 |
) |
|
|
(312 |
) |
|
Non-cash stock-based compensation |
|
940 |
|
|
|
595 |
|
|
|
1,807 |
|
|
|
1,303 |
|
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Increase) decrease in accounts receivable |
|
(4,558 |
) |
|
|
(7,142 |
) |
|
|
11,418 |
|
|
|
(3,632 |
) |
|
(Increase) decrease in prepaid expenses and other assets |
|
278 |
|
|
|
(268 |
) |
|
|
(283 |
) |
|
|
(1,261 |
) |
|
Increase (decrease) in accounts payable, accrued expenses and other liabilities |
|
(364 |
) |
|
|
1,557 |
|
|
|
(4,204 |
) |
|
|
(5,484 |
) |
|
Net cash provided by (used in) operating activities |
|
9,066 |
|
|
|
12,947 |
|
|
|
33,871 |
|
|
|
19,694 |
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment and intangibles |
|
(5,611 |
) |
|
|
(2,133 |
) |
|
|
(8,583 |
) |
|
|
(4,051 |
) |
|
Purchase of a business, net of cash acquired |
|
- |
|
|
|
(15,048 |
) |
|
|
- |
|
|
|
(15,048 |
) |
|
Net cash provided by (used in) investing activities |
|
(5,611 |
) |
|
|
(17,181 |
) |
|
|
(8,583 |
) |
|
|
(19,099 |
) |
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from stock option exercises |
|
681 |
|
|
|
103 |
|
|
|
1,581 |
|
|
|
1,739 |
|
|
Payments on long-term debt |
|
(937 |
) |
|
|
(937 |
) |
|
|
(1,875 |
) |
|
|
(1,875 |
) |
|
Dividends paid |
|
(2,197 |
) |
|
|
(2,240 |
) |
|
|
(4,388 |
) |
|
|
(4,464 |
) |
|
Payment of contingent consideration |
|
- |
|
|
|
- |
|
|
|
(1,000 |
) |
|
|
- |
|
|
Net cash provided by (used in) financing activities |
|
(2,453 |
) |
|
|
(3,074 |
) |
|
|
(5,682 |
) |
|
|
(4,600 |
) |
|
Net increase (decrease) in cash and cash equivalents |
|
1,002 |
|
|
|
(7,308 |
) |
|
|
19,606 |
|
|
|
(4,005 |
) |
|
Cash and cash equivalents: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning |
|
49,864 |
|
|
|
47,125 |
|
|
|
31,260 |
|
|
|
43,822 |
|
|
Ending |
$ |
50,866 |
|
|
$ |
39,817 |
|
|
$ |
50,866 |
|
|
$ |
39,817 |
|
Entravision Communications
Page 10 of 11
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 |
|
|
Six-Month Period |
|
||||||||||
|
|
Ended June 30, |
|
|
Ended June 30, |
|
||||||||||
|
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated adjusted EBITDA (1) |
$ |
16,822 |
|
|
$ |
22,147 |
|
|
$ |
33,664 |
|
|
$ |
37,132 |
|
|
Interest expense |
|
(3,256 |
) |
|
|
(3,469 |
) |
|
|
(6,483 |
) |
|
|
(6,907 |
) |
|
Interest income |
|
11 |
|
|
|
13 |
|
|
|
19 |
|
|
|
25 |
|
|
Income tax (expense) benefit |
|
(3,477 |
) |
|
|
(5,890 |
) |
|
|
(7,023 |
) |
|
|
(8,874 |
) |
|
Amortization of syndication contracts |
|
(85 |
) |
|
|
(122 |
) |
|
|
(171 |
) |
|
|
(244 |
) |
|
Payments on syndication contracts |
|
124 |
|
|
|
154 |
|
|
|
246 |
|
|
|
312 |
|
|
Non-cash stock-based compensation included in direct operating expenses |
|
(348 |
) |
|
|
(127 |
) |
|
|
(706 |
) |
|
|
(217 |
) |
|
Non-cash stock-based compensation included in corporate expenses |
|
(592 |
) |
|
|
(468 |
) |
|
|
(1,101 |
) |
|
|
(1,086 |
) |
|
Depreciation and amortization |
|
(3,958 |
) |
|
|
(3,503 |
) |
|
|
(7,920 |
) |
|
|
(7,018 |
) |
|
Net income (loss) |
|
5,241 |
|
|
|
8,735 |
|
|
|
10,525 |
|
|
|
13,123 |
|
|
Depreciation and amortization |
|
3,958 |
|
|
|
3,503 |
|
|
|
7,920 |
|
|
|
7,018 |
|
|
Deferred income taxes |
|
3,411 |
|
|
|
5,796 |
|
|
|
6,370 |
|
|
|
8,291 |
|
|
Amortization of debt issue costs |
|
199 |
|
|
|
203 |
|
|
|
393 |
|
|
|
404 |
|
|
Amortization of syndication contracts |
|
85 |
|
|
|
122 |
|
|
|
171 |
|
|
|
244 |
|
|
Payments on syndication contracts |
|
(124 |
) |
|
|
(154 |
) |
|
|
(246 |
) |
|
|
(312 |
) |
|
Non-cash stock-based compensation |
|
940 |
|
|
|
595 |
|
|
|
1,807 |
|
|
|
1,303 |
|
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Increase) decrease in accounts receivable |
|
(4,558 |
) |
|
|
(7,142 |
) |
|
|
11,418 |
|
|
|
(3,632 |
) |
|
(Increase) decrease in prepaid expenses and other assets |
|
278 |
|
|
|
(268 |
) |
|
|
(283 |
) |
|
|
(1,261 |
) |
|
Increase (decrease) in accounts payable, accrued expenses and other liabilities |
|
(364 |
) |
|
|
1,557 |
|
|
|
(4,204 |
) |
|
|
(5,484 |
) |
|
Cash flows from operating activities |
$ |
9,066 |
|
|
$ |
12,947 |
|
|
$ |
33,871 |
|
|
$ |
19,694 |
|
|
(1) |
Consolidated adjusted EBITDA is defined on page 1. |
Entravision Communications
Page 11 of 11
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 |
|
|
Six-Month Period |
|
||||||||||
|
|
Ended June 30, |
|
|
Ended June 30, |
|
||||||||||
|
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
Consolidated adjusted EBITDA (1) |
$ |
16,822 |
|
|
$ |
22,147 |
|
|
$ |
33,664 |
|
|
$ |
37,132 |
|
|
Net interest expense (1) |
|
3,046 |
|
|
|
3,253 |
|
|
|
6,071 |
|
|
|
6,478 |
|
|
Cash paid for income taxes |
|
66 |
|
|
|
94 |
|
|
|
653 |
|
|
|
583 |
|
|
Capital expenditures (2) |
|
5,611 |
|
|
|
2,133 |
|
|
|
8,583 |
|
|
|
4,051 |
|
|
Free cash flow (1) |
|
8,099 |
|
|
|
16,667 |
|
|
|
18,357 |
|
|
|
26,020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures (2) |
|
5,611 |
|
|
|
2,133 |
|
|
|
8,583 |
|
|
|
4,051 |
|
|
Amortization of debt issue costs |
|
(199 |
) |
|
|
(203 |
) |
|
|
(393 |
) |
|
|
(404 |
) |
|
Non-cash income tax expense |
|
(3,411 |
) |
|
|
(5,796 |
) |
|
|
(6,370 |
) |
|
|
(8,291 |
) |
|
Amortization of syndication contracts |
|
(85 |
) |
|
|
(122 |
) |
|
|
(171 |
) |
|
|
(244 |
) |
|
Payments on syndication contracts |
|
124 |
|
|
|
154 |
|
|
|
246 |
|
|
|
312 |
|
|
Non-cash stock-based compensation included in direct operating expenses |
|
(348 |
) |
|
|
(127 |
) |
|
|
(706 |
) |
|
|
(217 |
) |
|
Non-cash stock-based compensation included in corporate expenses |
|
(592 |
) |
|
|
(468 |
) |
|
|
(1,101 |
) |
|
|
(1,086 |
) |
|
Depreciation and amortization |
|
(3,958 |
) |
|
|
(3,503 |
) |
|
|
(7,920 |
) |
|
|
(7,018 |
) |
|
Net income (loss) |
$ |
5,241 |
|
|
$ |
8,735 |
|
|
$ |
10,525 |
|
|
$ |
13,123 |
|
|
(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. |