Exhibit 99.1
ENTRAVISION COMMUNICATIONS CORPORATION REPORTS
THIRD QUARTER 2016 RESULTS
- Announces Quarterly Cash Dividend of $0.03125 Per Share -
SANTA MONICA, CALIFORNIA, November 3, 2016 – Entravision Communications Corporation (NYSE: EVC) today reported financial results for the three- and nine-month periods ended September 30, 2016.
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 |
|
|
Nine-Month Period |
|
||||||||||||||||||
|
|
Ended September 30, |
|
|
Ended September 30, |
|
||||||||||||||||||
|
|
2016 |
|
|
2015 |
|
|
% Change |
|
|
2016 |
|
|
2015 |
|
|
% Change |
|
||||||
|
Net revenue |
$ |
65,281 |
|
|
$ |
69,261 |
|
|
|
(6 |
)% |
|
$ |
188,223 |
|
|
$ |
188,702 |
|
|
|
(0 |
)% |
|
Cost of revenue - digital media (1) |
|
2,281 |
|
|
|
1,881 |
|
|
|
21 |
% |
|
|
6,493 |
|
|
|
4,633 |
|
|
|
40 |
% |
|
Operating expenses (2) |
|
40,187 |
|
|
|
38,804 |
|
|
|
4 |
% |
|
|
119,135 |
|
|
|
113,518 |
|
|
|
5 |
% |
|
Corporate expenses (3) |
|
5,728 |
|
|
|
5,535 |
|
|
|
3 |
% |
|
|
16,625 |
|
|
|
15,578 |
|
|
|
7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated adjusted EBITDA (4) |
|
17,841 |
|
|
|
23,878 |
|
|
|
(25 |
)% |
|
|
48,623 |
|
|
|
57,542 |
|
|
|
(15 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow (5) |
$ |
11,928 |
|
|
$ |
17,793 |
|
|
|
(33 |
)% |
|
$ |
30,285 |
|
|
$ |
36,150 |
|
|
|
(16 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
5,415 |
|
|
$ |
9,293 |
|
|
|
(42 |
)% |
|
$ |
13,402 |
|
|
$ |
19,818 |
|
|
|
(32 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share, basic |
$ |
0.06 |
|
|
$ |
0.11 |
|
|
|
(45 |
)% |
|
$ |
0.15 |
|
|
$ |
0.23 |
|
|
|
(35 |
)% |
|
Net income per share, diluted |
$ |
0.06 |
|
|
$ |
0.10 |
|
|
|
(40 |
)% |
|
$ |
0.15 |
|
|
$ |
0.22 |
|
|
|
(32 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding, basic |
|
89,590,135 |
|
|
|
88,090,143 |
|
|
|
|
|
|
|
89,208,732 |
|
|
|
87,820,029 |
|
|
|
|
|
|
Weighted average common shares outstanding, diluted |
|
91,489,975 |
|
|
|
90,423,333 |
|
|
|
|
|
|
|
91,188,958 |
|
|
|
90,202,389 |
|
|
|
|
|
|
(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 $0.1 million and $0.3 million of non-cash stock-based compensation for the three-month periods ended September 30, 2016 and 2015, respectively and $0.7 million and $1.0 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2016 and 2015, 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 $0.7 million and $0.6 million of non-cash stock-based compensation for the three-month periods ended September 30, 2016 and 2015, respectively and $1.9 million and $1.7 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2016 and 2015, respectively. |
Entravision Communications
Page 2 of 11
|
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. |
Commenting on the Company’s earnings results, Walter F. Ulloa, Chairman and Chief Executive Officer, said, “During the third quarter, we faced challenging comparisons to last year’s third quarter. We continued to grow our core television advertising revenue (excluding retransmission consent revenue and political advertising revenue), but these increases were offset by decreases primarily attributable to the loss of non-advertising revenue from a telecommunications operator. Additionally, we continued to grow our digital segment revenue and build our digital footprint through Pulpo Media, which provides us with an integrated platform to connect advertisers and marketers with Latino audiences. Looking ahead, we remain well positioned to build on our success in further 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 $0.03125 per share of the Company's Class A, Class B and Class U common stock, in an aggregate amount of approximately $2.8 million. The quarterly dividend will be payable on December 30, 2016 to shareholders of record as of the close of business on December 14, 2016, and the common stock will trade ex-dividend on December 12, 2016. 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 September 30, 2016 Compared to Three-Month Period Ended
September 30, 2015
(Unaudited)
|
|
Three-Month Period |
|
|||||||||
|
|
Ended September 30, |
|
|||||||||
|
|
2016 |
|
|
2015 |
|
|
% Change |
|
|||
|
Net revenue |
$ |
65,281 |
|
|
$ |
69,261 |
|
|
|
(6 |
)% |
|
Cost of revenue - digital media (1) |
|
2,281 |
|
|
|
1,881 |
|
|
|
21 |
% |
|
Operating expenses (1) |
|
40,187 |
|
|
|
38,804 |
|
|
|
4 |
% |
|
Corporate expenses (1) |
|
5,728 |
|
|
|
5,535 |
|
|
|
3 |
% |
|
Depreciation and amortization |
|
3,812 |
|
|
|
4,030 |
|
|
|
(5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
13,273 |
|
|
|
19,011 |
|
|
|
(30 |
)% |
|
Interest expense, net |
|
(3,823 |
) |
|
|
(3,274 |
) |
|
|
17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
9,450 |
|
|
|
15,737 |
|
|
|
(40 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
(4,035 |
) |
|
|
(6,444 |
) |
|
|
(37 |
)% |
|
Net income |
$ |
5,415 |
|
|
$ |
9,293 |
|
|
|
(42 |
)% |
|
(1) |
Cost of revenue, operating expenses and corporate expenses are defined on page 1. |
Net revenue decreased to $65.3 million for the three-month period ended September 30, 2016 from $69.3 million for the three-month period ended September 30, 2015, a decrease of $4.0 million. Of the overall decrease, approximately $3.0 million was attributed to our television segment and was primarily attributable to approximately $5.5 million of revenue associated with television station channel modifications made by the Company in order to accommodate the operations of a telecommunications operator included in the 2015 period, and which revenue did not recur in 2016, and a decrease in local advertising revenue. This decrease in the television segment was partially offset by an increase in national advertising revenue, an increase in political advertising revenue, which was not material in 2015, and an increase in retransmission consent revenue. Additionally we had a decrease of $1.7 million in the radio segment primarily attributable to a decrease in local advertising revenue, partially offset by an increase in political advertising revenue, which was not material in 2015. The overall decrease in net revenue was partially offset by an increase of $0.7 million that was attributed to our digital segment and was primarily attributable to increases in national and local revenue.
Cost of revenue increased to $2.3 million for the three-month period ended September 30, 2016 from $1.9 million for the three-month period ended September 30, 2015, an increase of $0.4 million, due to increased online media costs associated with the increase in net revenue of our digital segment.
Operating expenses increased to $40.2 million for the three-month period ended September 30, 2016 from $38.8 million for the three-month period ended September 30, 2015, an increase of $1.4 million. The increase was primarily attributable to expenses associated with the increase in advertising revenue and increases in salary expense and insurance expense.
Corporate expenses increased to $5.7 million for the three-month period ended September 30, 2016 from $5.5 million for the three-month period ended September 30, 2015, an increase of $0.2 million. The increase was primarily attributable to increases in salary expense and non-cash stock-based compensation expense.
Entravision Communications
Page 4 of 11
Nine-Month Period Ended September 30, 2016 Compared to Nine-Month Period Ended
September 30, 2015
(Unaudited)
|
|
Nine-Month Period |
|
|||||||||
|
|
Ended September 30, |
|
|||||||||
|
|
2016 |
|
|
2015 |
|
|
% Change |
|
|||
|
Net revenue |
$ |
188,223 |
|
|
$ |
188,702 |
|
|
|
(0 |
)% |
|
Cost of revenue - digital media (1) |
|
6,493 |
|
|
|
4,633 |
|
|
|
40 |
% |
|
Operating expenses (1) |
|
119,135 |
|
|
|
113,518 |
|
|
|
5 |
% |
|
Corporate expenses (1) |
|
16,625 |
|
|
|
15,578 |
|
|
|
7 |
% |
|
Depreciation and amortization |
|
11,724 |
|
|
|
11,950 |
|
|
|
(2 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
34,246 |
|
|
|
43,023 |
|
|
|
(20 |
)% |
|
Interest expense, net |
|
(11,423 |
) |
|
|
(9,738 |
) |
|
|
17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
22,823 |
|
|
|
33,285 |
|
|
|
(31 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
(9,421 |
) |
|
|
(13,467 |
) |
|
|
(30 |
)% |
|
Net income |
$ |
13,402 |
|
|
$ |
19,818 |
|
|
|
(32 |
)% |
Net revenue decreased to $188.2 million for the nine-month period ended September 30, 2016 from $188.7 million for the nine-month period ended September 30, 2015, a decrease of $0.5 million. Of the overall decrease, approximately $3.2 million was attributed to our television segment and was primarily attributable to approximately $10.5 million of revenue associated with television station channel modifications made by the Company in order to accommodate the operations of a telecommunications operator included in the 2015 period, and which revenue did not recur in 2016, and a decrease in local advertising revenue. This decrease in the television segment was partially offset by an increase in political advertising revenue, which was not material in 2015, an increase in national advertising revenue, and an increase in retransmission consent revenue. Additionally approximately $1.2 million of the overall decrease was attributed to our radio segment and was primarily attributable to a decrease in local advertising revenue, partially offset by an increase in political advertising revenue, which was not material in 2015. The overall decrease in net revenue was partially offset by an increase of approximately $3.9 million in our digital segment and was primarily attributable to increases in national and local revenue.
Cost of revenue increased to $6.5 million for the nine-month period ended September 30, 2016 from $4.6 million for the nine-month period ended September 30, 2015, an increase of $1.9 million, due to increased online media costs associated with the increase in net revenue of our digital segment.
Operating expenses increased to $119.1 million for the nine-month period ended September 30, 2016 from $113.5 million for the nine-month period ended September 30, 2015, an increase of $5.6 million. The increase was primarily attributable to expenses associated with the increase in advertising revenue and increases in salary expense and insurance expense.
Corporate expenses increased to $16.6 million for the nine-month period ended September 30, 2016 from $15.6 million for the nine-month period ended September 30, 2015, an increase of $1.0 million. The increase was primarily attributable to increases in salary expense and non-cash stock-based compensation expense.
Entravision Communications
Page 5 of 11
The following represents selected unaudited segment information:
|
|
Three-Month Period |
|
|
Nine-Month Period |
|
||||||||||||||||||
|
|
Ended September 30, |
|
|
Ended September 30, |
|
||||||||||||||||||
|
|
|
2016 |
|
|
|
2015 |
|
|
% Change |
|
|
|
2016 |
|
|
|
2015 |
|
|
% Change |
|
||
|
Net Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Television |
$ |
40,363 |
|
|
$ |
43,393 |
|
|
|
(7 |
)% |
|
$ |
116,143 |
|
|
$ |
119,292 |
|
|
|
(3 |
)% |
|
Radio |
|
19,169 |
|
|
|
20,855 |
|
|
|
(8 |
)% |
|
|
55,605 |
|
|
|
56,785 |
|
|
|
(2 |
)% |
|
Digital |
|
5,749 |
|
|
|
5,013 |
|
|
|
15 |
% |
|
|
16,475 |
|
|
|
12,625 |
|
|
|
30 |
% |
|
Total |
$ |
65,281 |
|
|
$ |
69,261 |
|
|
|
(6 |
)% |
|
$ |
188,223 |
|
|
$ |
188,702 |
|
|
|
(0 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Revenue - digital media (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Digital |
$ |
2,281 |
|
|
$ |
1,881 |
|
|
|
21 |
% |
|
$ |
6,493 |
|
|
$ |
4,633 |
|
|
|
40 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Television |
|
21,151 |
|
|
|
20,445 |
|
|
|
3 |
% |
|
|
62,299 |
|
|
|
59,928 |
|
|
|
4 |
% |
|
Radio |
|
16,422 |
|
|
|
15,865 |
|
|
|
4 |
% |
|
|
48,486 |
|
|
|
45,997 |
|
|
|
5 |
% |
|
Digital |
|
2,614 |
|
|
|
2,494 |
|
|
|
5 |
% |
|
|
8,350 |
|
|
|
7,593 |
|
|
|
10 |
% |
|
Total |
$ |
40,187 |
|
|
$ |
38,804 |
|
|
|
4 |
% |
|
$ |
119,135 |
|
|
$ |
113,518 |
|
|
|
5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Expenses (1) |
$ |
5,728 |
|
|
$ |
5,535 |
|
|
|
3 |
% |
|
$ |
16,625 |
|
|
$ |
15,578 |
|
|
|
7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated adjusted EBITDA (1) |
$ |
17,841 |
|
|
$ |
23,878 |
|
|
|
(25 |
)% |
|
$ |
48,623 |
|
|
$ |
57,542 |
|
|
|
(15 |
)% |
|
(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 2016 third quarter results on November 3, 2016 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 leading media company that reaches and engages U.S. Latinos across acculturation levels and media channels, as well as consumers in Mexico. The Company’s comprehensive portfolio incorporates integrated media and marketing solutions comprised of acclaimed television, radio, digital properties, events, and data analytics services. Entravision has 54 primary television stations and is the largest affiliate group of both the Univision and UniMás television networks. Entravision also owns and operates 49 primarily Spanish-language radio stations featuring nationally recognized talent, as well as the Entravision Audio Network and Entravision Solutions, a coast-to-coast national spot and network sales and marketing organization representing Entravision’s owned and operated, as well as its affiliate partner, radio stations. According to comScore Media Metrix®, Entravision’s digital operating group, Pulpo, is the #1-ranked online advertising platform in Hispanic reach, and Pulpo’s comprehensive media offering, data, and consumer insights lead the industry. 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)
|
|
September 30, |
|
|
December 31, |
|
||
|
|
2016 |
|
|
2015 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
70,320 |
|
|
$ |
47,924 |
|
|
Trade receivables, net of allowance for doubtful accounts |
|
62,317 |
|
|
|
66,399 |
|
|
Prepaid expenses and other current assets |
|
6,602 |
|
|
|
5,705 |
|
|
Total current assets |
|
139,239 |
|
|
|
120,028 |
|
|
Property and equipment, net |
|
55,719 |
|
|
|
57,874 |
|
|
Intangible assets subject to amortization, net |
|
14,005 |
|
|
|
16,656 |
|
|
Intangible assets not subject to amortization |
|
220,701 |
|
|
|
220,701 |
|
|
Goodwill |
|
50,081 |
|
|
|
50,081 |
|
|
Deferred income taxes |
|
49,000 |
|
|
|
57,929 |
|
|
Other assets |
|
2,314 |
|
|
|
1,693 |
|
|
Total assets |
$ |
531,059 |
|
|
$ |
524,962 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Current maturities of long-term debt |
$ |
3,750 |
|
|
$ |
3,750 |
|
|
Accounts payable and accrued expenses |
|
28,440 |
|
|
|
29,787 |
|
|
Total current liabilities |
|
32,190 |
|
|
|
33,537 |
|
|
Long-term debt, less current maturities, net of unamortized debt issuance costs |
|
307,296 |
|
|
|
309,587 |
|
|
Other long-term liabilities |
|
14,687 |
|
|
|
14,565 |
|
|
Total liabilities |
|
354,173 |
|
|
|
357,689 |
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
|
|
|
|
|
|
Class A common stock |
|
6 |
|
|
|
6 |
|
|
Class B common stock |
|
2 |
|
|
|
2 |
|
|
Class U common stock |
|
1 |
|
|
|
1 |
|
|
Additional paid-in capital |
|
906,375 |
|
|
|
910,228 |
|
|
Accumulated deficit |
|
(725,450 |
) |
|
|
(738,849 |
) |
|
Accumulated other comprehensive income (loss) |
|
(4,048 |
) |
|
|
(4,115 |
) |
|
Total stockholders' equity |
|
176,886 |
|
|
|
167,273 |
|
|
Total liabilities and stockholders' equity |
$ |
531,059 |
|
|
$ |
524,962 |
|
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 |
|
|
Nine-Month Period |
|
||||||||||
|
|
Ended September 30, |
|
|
Ended September 30, |
|
||||||||||
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue |
$ |
65,281 |
|
|
$ |
69,261 |
|
|
$ |
188,223 |
|
|
$ |
188,702 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue - digital media |
|
2,281 |
|
|
|
1,881 |
|
|
|
6,493 |
|
|
|
4,633 |
|
|
Direct operating expenses |
|
28,238 |
|
|
|
27,624 |
|
|
|
84,341 |
|
|
|
81,353 |
|
|
Selling, general and administrative expenses |
|
11,949 |
|
|
|
11,180 |
|
|
|
34,794 |
|
|
|
32,165 |
|
|
Corporate expenses |
|
5,728 |
|
|
|
5,535 |
|
|
|
16,625 |
|
|
|
15,578 |
|
|
Depreciation and amortization |
|
3,812 |
|
|
|
4,030 |
|
|
|
11,724 |
|
|
|
11,950 |
|
|
|
|
52,008 |
|
|
|
50,250 |
|
|
|
153,977 |
|
|
|
145,679 |
|
|
Operating income |
|
13,273 |
|
|
|
19,011 |
|
|
|
34,246 |
|
|
|
43,023 |
|
|
Interest expense |
|
(3,894 |
) |
|
|
(3,286 |
) |
|
|
(11,619 |
) |
|
|
(9,769 |
) |
|
Interest income |
|
71 |
|
|
|
12 |
|
|
|
196 |
|
|
|
31 |
|
|
Income before income taxes |
|
9,450 |
|
|
|
15,737 |
|
|
|
22,823 |
|
|
|
33,285 |
|
|
Income tax expense |
|
(4,035 |
) |
|
|
(6,444 |
) |
|
|
(9,421 |
) |
|
|
(13,467 |
) |
|
Net income |
$ |
5,415 |
|
|
$ |
9,293 |
|
|
$ |
13,402 |
|
|
$ |
19,818 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share, basic |
$ |
0.06 |
|
|
$ |
0.11 |
|
|
$ |
0.15 |
|
|
$ |
0.23 |
|
|
Net income per share, diluted |
$ |
0.06 |
|
|
$ |
0.10 |
|
|
$ |
0.15 |
|
|
$ |
0.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per common share |
$ |
0.03 |
|
|
$ |
0.03 |
|
|
$ |
0.09 |
|
|
$ |
0.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding, basic |
|
89,590,135 |
|
|
|
88,090,143 |
|
|
|
89,208,732 |
|
|
|
87,820,029 |
|
|
Weighted average common shares outstanding, diluted |
|
91,489,975 |
|
|
|
90,423,333 |
|
|
|
91,188,958 |
|
|
|
90,202,389 |
|
Entravision Communications
Page 9 of 11
Entravision Communications Corporation
Consolidated Statements of Cash Flows
(In thousands; unaudited)
|
|
Three-Month Period |
|
|
Nine-Month Period |
|
||||||||||
|
|
Ended September 30, |
|
|
Ended September 30, |
|
||||||||||
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
5,415 |
|
|
$ |
9,293 |
|
|
$ |
13,402 |
|
|
$ |
19,818 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
3,812 |
|
|
|
4,030 |
|
|
|
11,724 |
|
|
|
11,950 |
|
|
Deferred income taxes |
|
3,965 |
|
|
|
6,394 |
|
|
|
8,887 |
|
|
|
12,764 |
|
|
Amortization of debt issue costs |
|
195 |
|
|
|
202 |
|
|
|
579 |
|
|
|
595 |
|
|
Amortization of syndication contracts |
|
99 |
|
|
|
91 |
|
|
|
289 |
|
|
|
262 |
|
|
Payments on syndication contracts |
|
(87 |
) |
|
|
(131 |
) |
|
|
(270 |
) |
|
|
(377 |
) |
|
Non-cash stock-based compensation |
|
744 |
|
|
|
877 |
|
|
|
2,634 |
|
|
|
2,684 |
|
|
(Increase) decrease in accounts receivable |
|
221 |
|
|
|
(8,573 |
) |
|
|
5,804 |
|
|
|
2,845 |
|
|
(Increase) decrease in prepaid expenses and other assets |
|
(569 |
) |
|
|
(795 |
) |
|
|
(952 |
) |
|
|
(1,078 |
) |
|
Increase (decrease) in accounts payable, accrued expenses and other liabilities |
|
684 |
|
|
|
1,625 |
|
|
|
(3,192 |
) |
|
|
(2,579 |
) |
|
Net cash provided by operating activities |
|
14,479 |
|
|
|
13,013 |
|
|
|
38,905 |
|
|
|
46,884 |
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of short-term investments |
|
- |
|
|
|
- |
|
|
|
(30,000 |
) |
|
|
- |
|
|
Proceeds from maturity of short term investments |
|
30,000 |
|
|
|
- |
|
|
|
30,000 |
|
|
|
- |
|
|
Purchases of investments |
|
(250 |
) |
|
|
- |
|
|
|
(250 |
) |
|
|
- |
|
|
Purchases of property and equipment and intangibles |
|
(2,215 |
) |
|
|
(2,963 |
) |
|
|
(6,960 |
) |
|
|
(11,546 |
) |
|
Net cash provided by (used in) investing activities |
|
27,535 |
|
|
|
(2,963 |
) |
|
|
(7,210 |
) |
|
|
(11,546 |
) |
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from stock option exercises |
|
615 |
|
|
|
233 |
|
|
|
1,885 |
|
|
|
1,814 |
|
|
Payments on long-term debt |
|
(938 |
) |
|
|
(938 |
) |
|
|
(2,813 |
) |
|
|
(2,813 |
) |
|
Dividends paid |
|
(2,802 |
) |
|
|
(2,203 |
) |
|
|
(8,371 |
) |
|
|
(6,591 |
) |
|
Payment of contingent consideration |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,000 |
) |
|
Net cash used in financing activities |
|
(3,125 |
) |
|
|
(2,908 |
) |
|
|
(9,299 |
) |
|
|
(8,590 |
) |
|
Net increase in cash and cash equivalents |
|
38,889 |
|
|
|
7,142 |
|
|
|
22,396 |
|
|
|
26,748 |
|
|
Cash and cash equivalents: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning |
|
31,431 |
|
|
|
50,866 |
|
|
|
47,924 |
|
|
|
31,260 |
|
|
Ending |
$ |
70,320 |
|
|
$ |
58,008 |
|
|
$ |
70,320 |
|
|
$ |
58,008 |
|
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 |
|
|
Nine-Month Period |
|
||||||||||
|
|
Ended September 30, |
|
|
Ended September 30, |
|
||||||||||
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
Consolidated adjusted EBITDA (1) |
$ |
17,841 |
|
|
$ |
23,878 |
|
|
$ |
48,623 |
|
|
$ |
57,542 |
|
|
Interest expense |
|
(3,894 |
) |
|
|
(3,286 |
) |
|
|
(11,619 |
) |
|
|
(9,769 |
) |
|
Interest income |
|
71 |
|
|
|
12 |
|
|
|
196 |
|
|
|
31 |
|
|
Income tax expense |
|
(4,035 |
) |
|
|
(6,444 |
) |
|
|
(9,421 |
) |
|
|
(13,467 |
) |
|
Amortization of syndication contracts |
|
(99 |
) |
|
|
(91 |
) |
|
|
(289 |
) |
|
|
(262 |
) |
|
Payments on syndication contracts |
|
87 |
|
|
|
131 |
|
|
|
270 |
|
|
|
377 |
|
|
Non-cash stock-based compensation included in direct operating expenses |
|
(79 |
) |
|
|
(274 |
) |
|
|
(700 |
) |
|
|
(980 |
) |
|
Non-cash stock-based compensation included in corporate expenses |
|
(665 |
) |
|
|
(603 |
) |
|
|
(1,934 |
) |
|
|
(1,704 |
) |
|
Depreciation and amortization |
|
(3,812 |
) |
|
|
(4,030 |
) |
|
|
(11,724 |
) |
|
|
(11,950 |
) |
|
Net income |
|
5,415 |
|
|
|
9,293 |
|
|
|
13,402 |
|
|
|
19,818 |
|
|
Depreciation and amortization |
|
3,812 |
|
|
|
4,030 |
|
|
|
11,724 |
|
|
|
11,950 |
|
|
Deferred income taxes |
|
3,965 |
|
|
|
6,394 |
|
|
|
8,887 |
|
|
|
12,764 |
|
|
Amortization of debt issue costs |
|
195 |
|
|
|
202 |
|
|
|
579 |
|
|
|
595 |
|
|
Amortization of syndication contracts |
|
99 |
|
|
|
91 |
|
|
|
289 |
|
|
|
262 |
|
|
Payments on syndication contracts |
|
(87 |
) |
|
|
(131 |
) |
|
|
(270 |
) |
|
|
(377 |
) |
|
Non-cash stock-based compensation |
|
744 |
|
|
|
877 |
|
|
|
2,634 |
|
|
|
2,684 |
|
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Increase) decrease in accounts receivable |
|
221 |
|
|
|
(8,573 |
) |
|
|
5,804 |
|
|
|
2,845 |
|
|
(Increase) decrease in prepaid expenses and other assets |
|
(569 |
) |
|
|
(795 |
) |
|
|
(952 |
) |
|
|
(1,078 |
) |
|
Increase (decrease) in accounts payable, accrued expenses and other liabilities |
|
684 |
|
|
|
1,625 |
|
|
|
(3,192 |
) |
|
|
(2,579 |
) |
|
Cash flows from operating activities |
$ |
14,479 |
|
|
$ |
13,013 |
|
|
$ |
38,905 |
|
|
$ |
46,884 |
|
|
(1) |
Consolidated adjusted EBITDA is defined on page 1. |
Entravision Communications
Page 11 of 11
Entravision Communications Corporation
Reconciliation of Free Cash Flow 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 |
|
|
Nine-Month Period |
|
||||||||||
|
|
Ended September 30, |
|
|
Ended September 30, |
|
||||||||||
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
Consolidated adjusted EBITDA (1) |
$ |
17,841 |
|
|
$ |
23,878 |
|
|
$ |
48,623 |
|
|
$ |
57,542 |
|
|
Net interest expense (1) |
|
(3,628 |
) |
|
|
(3,072 |
) |
|
|
(10,844 |
) |
|
|
(9,143 |
) |
|
Cash paid for income taxes |
|
(70 |
) |
|
|
(50 |
) |
|
|
(534 |
) |
|
|
(703 |
) |
|
Capital expenditures (2) |
|
(2,215 |
) |
|
|
(2,963 |
) |
|
|
(6,960 |
) |
|
|
(11,546 |
) |
|
Free cash flow (1) |
|
11,928 |
|
|
|
17,793 |
|
|
|
30,285 |
|
|
|
36,150 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures (2) |
|
2,215 |
|
|
|
2,963 |
|
|
|
6,960 |
|
|
|
11,546 |
|
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Increase) decrease in accounts receivable |
|
221 |
|
|
|
(8,573 |
) |
|
|
5,804 |
|
|
|
2,845 |
|
|
(Increase) decrease in prepaid expenses and other assets |
|
(569 |
) |
|
|
(795 |
) |
|
|
(952 |
) |
|
|
(1,078 |
) |
|
Increase (decrease) in accounts payable, accrued expenses and other liabilities |
|
684 |
|
|
|
1,625 |
|
|
|
(3,192 |
) |
|
|
(2,579 |
) |
|
Cash Flows From Operating Activities |
$ |
14,479 |
|
|
$ |
13,013 |
|
|
$ |
38,905 |
|
|
$ |
46,884 |
|
|
(1) |
Consolidated adjusted EBITDA, net interest expense, and free cash flow are defined on page 1. |
|
(2) |
Capital expenditures are not part of the consolidated statement of operations. |