8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 8-K

Current Report

Pursuant to Section 13 or 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  March 11, 2021

ENTRAVISION COMMUNICATIONS CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	001-15997	95-4783236
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

2425 Olympic Boulevard, Suite 6000 West

Santa Monica, California 90404

(Address of principal executive offices) (Zip Code)

(310) 447-3870

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock	EVC	The New York Stock Exchange

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02   Results of Operations and Financial Condition.

On March 11, 2021, Entravision Communications Corporation (the “Company”) issued a press release announcing its results of operations for the three- and twelve-month periods ended December 31, 2020.  A copy of that press release is furnished herewith as Exhibit 99.1.

The information provided pursuant to Item 2.02 in this Current Report on Form 8-K, including the exhibit thereto, is being furnished under Item 2.02 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed to be incorporated by reference into any future registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, regardless of the general incorporation language of such filing, except as shall be expressly set forth by specific reference in such filing.

Item 9.01   Financial Statements and Exhibits.

(d) Exhibits

99.1	Press release issued by Entravision Communications Corporation on March 11, 2021 announcing its results of operations for the three- and twelve-month periods ended December 31, 2020.
104	Cover Page Interactive Date File (embedded within the Inline XBRL document).

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	ENTRAVISION COMMUNICATIONS CORPORATION
Date:  March 11, 2021	By:	/s/ Walter F. Ulloa
		Walter F. Ulloa
		Chairman and Chief Executive Officer

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EX-99.1

Entravision Communications

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Exhibit 99.1

ENTRAVISION COMMUNICATIONS CORPORATION REPORTS

FOURTH QUARTER AND FULL YEAR 2020 RESULTS

- Reports Quarter Over Quarter Net Income Attributable to Common Stockholders Growth of 176% -

- Reports Quarter Over Quarter Consolidated Adjusted EBITDA Growth of 195% -

- Reports Quarter Over Quarter Operating Cash Flow Growth of 369%-

- Reports Quarter Over Quarter Free Cash Flow Growth of 495% -

- Quarterly Cash Dividend of $0.025 Per Share -

SANTA MONICA, CALIFORNIA, March 11, 2021 – Entravision Communications Corporation (NYSE: EVC) today reported unaudited financial results for the three- and twelve-month periods ended December 31, 2020.

“Entravision capped off a very challenging year with an exceptionally strong fourth quarter,” said Walter F. Ulloa, Chairman and Chief Executive Officer. “In addition to achieving record political revenues in the fourth quarter of 2020, our digital business expanded significantly and was up 424% over the prior-year period due in large part to our acquisition of a majority interest in Cisneros Interactive. Importantly, all three of our business segments grew in the fourth quarter of 2020 compared to the prior year, positioning us well for 2021.”

Mr. Ulloa continued, “This past quarter, as we focused on streamlining our cost structure to maintain the stability of our business, we also made great progress in strengthening our digital segment. In November, we appointed industry veteran and member of our Board of Directors Juan Saldívar as our new Chief Digital, Strategy and Accountability Officer. Juan’s appointment followed a number of strategic moves in 2020 to strengthen our portfolio of digital assets, including both the formation of Entravision Digital and our majority investment in Cisneros Interactive. We will continue to build upon our digital offerings, while also maintaining and strengthening our television and radio segments.”

Unaudited 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 12. Unaudited financial highlights are as follows:

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	Three Months Ended									Twelve Months Ended
	December 31,									December 31,
	2020			2019			% Change			2020			2019			% Change
Net revenue	$	171,683		$	70,838			142	%	$	344,026		$	273,575			26	%
Cost of revenue - digital (1)		85,326			10,314			727	%		106,928			36,757			191	%
Operating expenses (2)		45,945			44,169			4	%		153,313			173,377			(12	)%
Corporate expenses (3)		9,296			7,887			18	%		27,807			28,067			(1	)%
Foreign currency (gain) loss		(1,725	)		(223	)		674	%		(1,052	)		754		*
Consolidated adjusted EBITDA (4)		32,646			11,056			195	%		60,419			41,209			47	%
Free cash flow (5)	$	28,641		$	4,813			495	%	$	43,029		$	8,292			419	%
Net income (loss)	$	22,851		$	7,360			210	%	$	(1,387	)	$	(19,712	)		(93	)%
Net (income) loss attributable to redeemable noncontrolling interest	$	(2,523	)	$	-		*			$	(2,523	)	$	-		*
Net income (loss) attributable to common stockholders	$	20,328		$	7,360			176	%	$	(3,910	)	$	(19,712	)		(80	)%
Net income (loss) per share attributable to common stockholders, basic and diluted	$	0.24		$	0.09			167	%	$	(0.05	)	$	(0.23	)		(78	)%
Weighted average common shares outstanding, basic		84,297,592			84,226,135						84,231,212			85,107,301
Weighted average common shares outstanding, diluted		85,985,630			85,449,374						84,231,212			85,107,301

(1) Cost of revenue – digital 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) For purposes of presentation in this table, the operating expenses line item includes direct operating and selling, general and administrative expenses. Included in operating expenses are $0.9 million and $0.4 million of non-cash stock-based compensation for the three-month periods ended December 31, 2020 and 2019, respectively, and $1.2 million and $0.7 million of non-cash stock-based compensation for the twelve-month periods ended December 31, 2020 and 2019, respectively. Also for purposes of presentation in this table, the operating expenses line item does not include corporate expenses, foreign currency (gain) loss, depreciation and amortization, impairment charge, gain (loss) on sale of assets, gain (loss) on debt extinguishment, other income (loss) and change in fair value of contingent consideration.

(3) Corporate expenses include $1.9 million and $1.5 million of non-cash stock-based compensation for the three-month periods ended December 31, 2020 and 2019, respectively, and $3.9 million and $3.6 million of non-cash stock-based compensation for the twelve-month periods ended December 31, 2020 and 2019, respectively.

(4) 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 operating gain (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from the Federal Communications Commission, or FCC, spectrum incentive auction less related expenses, expenses associated with investments, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings. We use the term consolidated adjusted EBITDA because that measure is defined in the agreement governing our current credit facility (“the 2017 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, syndication programming amortization less syndication programming payments, revenue from FCC spectrum incentive auction less related expenses, expenses associated with investments, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings.

(5) Free cash flow is defined as consolidated adjusted EBITDA less cash paid for income taxes, net interest expense, capital expenditures and non-recurring cash expenses plus dividend income, and other operating gain (loss). Net interest expense is defined as interest expense, less non-cash interest expense relating to amortization of debt finance costs, and less interest income.

Quarterly Cash Dividend

As previously announced by the Company on March 3, 2021, the Company’s Board of Directors approved a quarterly cash dividend to shareholders of $0.025 per share on the Company's Class A, Class B and Class U common stock, in an aggregate amount of approximately $2.1 million. The quarterly dividend will be payable on March 31, 2021 to shareholders of record as of the close of business on March 16, 2021, and the common stock will trade ex-dividend on March 15, 2021. The Company currently anticipates

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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.

Expects to File Form 12b-25 for Extension of Filing Deadline for 2020 Form 10-K

The Company also announced today that it expects to file a notification of late filing on Form 12b-25 with the Securities and Exchange Commission, which provides an automatic 15-day extension of the filing deadline for its Annual Report on Form 10-K for the fiscal year ended December 31, 2020 (the “2020 Form 10-K”), to March 31, 2021. The Company expects to file the 2020 Form 10-K as soon as practicable within the extension period.

Unaudited Financial Results

The financial results included in this press release are unaudited and represent the most current information available to management. The Company’s independent registered public accounting firm has informed the Company that they have not completed their audit procedures as of the date of this press release. During the course of the completion of these audit procedures, items may be identified that would require the Company to make adjustments which could result in material changes to the Company’s unaudited financial results included in this press release. Consequently, the unaudited financial results included in this press release should not be viewed as substitutes for the Company’s audited results that will be included in the Company’s Annual Report on Form 10-K.  Unaudited financial results are as follows:

Three-Month Period Ended December 31, 2020 Compared to Three-Month Period Ended December 31, 2019

(Unaudited)

	Three Months Ended
	December 31,
	2020			2019			% Change
Net revenue		171,683			70,838			142	%
Cost of revenue - digital (1)		85,326			10,314			727	%
Operating expenses (1)		45,945			44,169			4	%
Corporate expenses (1)		9,296			7,887			18	%
Depreciation and amortization		4,963			4,236			17	%
Change in fair value of contingent consideration		—			(4,102	)		(100	)%
Impairment charge		200			654			(69	)%
Foreign currency (gain) loss		(1,725	)		(223	)		674	%
Other operating (gain) loss		(1,346	)		(829	)		62	%
Operating income (loss)		29,024			8,732			232	%
Interest expense, net		(1,474	)		(2,350	)		(37	)%
Dividend income		2			171			(99	)%
Gain (loss) on debt extinguishment		—			(255	)		(100	)%
Income before income taxes		27,552			6,298			337	%
Income tax (expense) benefit		(4,701	)		1,107		*
Net income (loss) before equity in net income (loss) of nonconsolidated affiliates		22,851			7,405			209	%
Equity in net income (loss) of nonconsolidated affiliates		—			(45	)		(100	)%
Net income (loss)		22,851			7,360			210	%
Net (income) loss attributable to redeemable noncontrolling interest		(2,523	)		—		*
Net income (loss) attributable to common stockholders	$	20,328		$	7,360			176	%

(1) Cost of revenue, operating expenses and corporate expenses are defined on page 1.

Net revenue increased to $171.7 million for the three-month period ended December 31, 2020 from $70.8 million for the three-month period ended December 31, 2019, an increase of approximately $100.9 million. Of the overall increase, approximately $13.6 million was attributable to our television segment and was primarily due to increases in political advertising revenue and an increase

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in national advertising revenue, partially offset by a decrease in local advertising revenue. The decrease in local advertising revenue was primarily a result of the continuing economic crisis resulting from the COVID-19 pandemic, ratings declines, competitive factors with another Spanish-language broadcaster, and changing demographic preferences of audiences. We have previously noted a trend for advertising to move increasingly from traditional media, such as television, to new media, such as digital media, and we expect this trend to continue. Additionally, approximately $84.9 million of the overall increase was attributable to our digital segment and was primarily due to the acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which did not contribute to net revenue in prior periods, partially offset by a decrease in advertising revenue as a result of declines in pre-acquisition digital revenue, and the continuing economic crisis resulting from the COVID-19 pandemic.  We have previously noted a trend in our domestic digital operations whereby revenue is shifting more to programmatic revenue, and this trend is now growing in markets outside the United States. As a result, advertisers are demanding more efficiency and lower cost from intermediaries like us.  In response to this trend, we are offering programmatic alternatives to advertisers, which is putting pressure on margins. We expect this trend will continue in future periods, likely resulting in a permanent higher volume, lower margin business in our digital segment. The digital advertising industry remains dynamic and is continuing to undergo rapid changes in technology and competition. We expect this trend to continue and possibly accelerate. We must continue to remain vigilant to meet these dynamic and rapid changes including the need to further adjust our business strategies accordingly. No assurances can be given that such adjustments will be successful. Additionally, approximately $2.3 million of the overall increase was attributable to our radio segment and was primarily due to an increase in political advertising revenue and an increase in national advertising revenue, partially offset by decreases in local advertising revenue. The decrease in local advertising revenue was primarily a result of the continuing economic crisis resulting from the COVID-19 pandemic, ratings declines and competitive factors with other Spanish-language broadcasters, and changing demographic preferences of audiences. We have previously noted a trend for advertising to move increasingly from traditional media, such as radio, to new media, such as digital media, and we expect this trend to continue. This trend has had a more significant impact on our radio revenue as compared to television revenue, and we expect that this trend will also continue.

Cost of revenue in our digital segment increased to $85.3 million for the three-month period ended December 31, 2020 from $10.3 million for the three-month period ended December 31, 2019, an increase of $75.0 million, primarily due to increased costs of revenue associated with Cisneros Interactive during the fourth quarter of 2020, following its acquisition during the fourth quarter of 2020, which did not incur cost of revenue for us in prior periods.

Operating expenses increased to $45.9 million for the three-month period ended December 31, 2020 from $44.2 million for the three-month period ended December 31, 2019, an increase of $1.7 million. Of the overall increase, approximately $0.7 million was attributable to our television segment and was primarily due to expenses associated with the increase in political and national advertising revenue, partially offset by decreases in salary expense associated with furloughs and layoffs. Additionally, approximately $4.1 million of the overall increase was attributable to our digital segment primarily due to the acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which did not incur direct operating expenses for us in prior periods, partially offset by decreases in salary expense associated with furloughs and layoffs, and expenses associated with the decrease in advertising revenue as a result of declines in pre-acquisition digital revenue. The overall increase was partially offset by a decrease of approximately $3.1 million attributable to our radio segment and was primarily due to decreases in salary expense associated with furloughs and layoffs, and payroll tax expense.

Corporate expenses increased to $9.3 million for the three-month period ended December 31, 2020 from $7.9 million for the three-month period ended December 31, 2019, an increase of $1.4 million. The increase was primarily due to retroactive restoration and payments of previously reduced salaries to the levels prior to the reduction in salaries due to the COVID-19 pandemic.

Our historical revenues have primarily been denominated in U.S. dollars, and the majority of our current revenues continue to be, and are expected to remain, denominated in U.S. dollars. However, our operating expenses are generally denominated in the currencies of the countries in which our operations are located, and we have operations in countries other than the United States, primarily those operations related to our digital business. As a result, we have operating expense, attributable to foreign currency, that is primarily related to the operations related to our digital business. We had a foreign currency gain of $1.7 million for the three-month period ended December 31, 2020 compared to a foreign currency gain of $0.2 million for the three-month period ended December 31, 2019. Foreign currency gain was primarily due to currency fluctuations that affected our digital segment operations located outside the United States.

Impairment charge related to certain FCC licenses in our radio reporting unit was $0.2 million for the three-month period ended December 31, 2020. Impairment charge related to indefinite life intangible assets in our television and radio reporting units was $0.7 million for the three-month period ended December 31, 2019.

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Twelve-Month Period Ended December 31, 2020 Compared to Twelve-Month Period Ended December 31, 2019

(Unaudited)

	Twelve Months Ended
	December 31,
	2020			2019			% Change
Net revenue		344,026			273,575			26	%
Cost of revenue - digital (1)		106,928			36,757			191	%
Operating expenses (1)		153,313			173,377			(12	)%
Corporate expenses (1)		27,807			28,067			(1	)%
Depreciation and amortization		17,282			16,648			4	%
Change in fair value of contingent consideration		—			(6,478	)		(100	)%
Impairment charge		40,035			32,097			25	%
Foreign currency (gain) loss		(1,052	)		754		*
Other operating (gain) loss		(6,895	)		(5,994	)		15	%
Operating income (loss)		6,608			(1,653	)		(500	)%
Interest expense, net		(6,517	)		(10,330	)		(37	)%
Dividend income		28			918			(97	)%
Gain (loss) on debt extinguishment		—			(255	)		(100	)%
Income before income taxes		119			(11,320	)	*
Income tax (expense) benefit		(1,506	)		(8,158	)		(82	)%
Net income (loss) before equity in net income (loss) of nonconsolidated affiliates		(1,387	)		(19,478	)		(93	)%
Equity in net income (loss) of nonconsolidated affiliates		—			(234	)		(100	)%
Net income (loss)		(1,387	)		(19,712	)		(93	)%
Net (income) loss attributable to redeemable noncontrolling interest		(2,523	)		—		*
Net income (loss) attributable to common stockholders	$	(3,910	)	$	(19,712	)		(80	)%

(1) Cost of revenue, operating expenses and corporate expenses are defined on page 1.

Net revenue increased to $344.0 million for the year ended December 31, 2020 from $273.6 million for the year ended December 31, 2019, an increase of approximately $70.4 million. Of the overall increase, approximately $4.8 million was attributable to our television segment and was primarily due to increases in political advertising revenue and retransmission consent revenue, partially offset by decreases in local and national advertising revenue and revenue from spectrum usage rights. The decrease in local and national advertising revenue was primarily a result of the continuing economic crisis resulting from the COVID-19 pandemic, ratings declines, competitive factors with another Spanish-language broadcaster, and changing demographic preferences of audiences. We have previously noted a trend for advertising to move increasingly from traditional media, such as television, to new media, such as digital media, and we expect this trend to continue. Additionally, approximately $74.4 million of the overall increase was attributable to our digital segment and was primarily due to the acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which did not contribute to net revenue in prior periods, partially offset by a decrease in advertising revenue as a result of declines in pre-acquisition digital revenue, and the continuing economic crisis resulting from the COVID-19 pandemic.  We have previously noted a trend in our domestic digital operations whereby revenue is shifting more to programmatic revenue, and this trend is now growing in markets outside the United States. As a result, advertisers are demanding more efficiency and lower cost from intermediaries like us.  In response to this trend, we are offering programmatic alternatives to advertisers, which is putting pressure on margins. We expect this trend will continue in future periods, likely resulting in a permanent higher volume, lower margin business in our digital segment. The digital advertising industry remains dynamic and is continuing to undergo rapid changes in technology and competition. We expect this trend to continue and possibly accelerate. We must continue to remain vigilant to meet these dynamic and rapid changes including the need to further adjust our business strategies accordingly. No assurances can be given that such adjustments will be successful. The overall increase in net revenue was partially offset by a decrease of approximately $8.7 million attributable to our radio segment and was primarily due to decreases in local and national advertising revenue, partially offset by an increase in political advertising revenue. The decrease in local and national advertising revenue was primarily a result of the continuing economic crisis resulting from the COVID-19 pandemic, ratings declines and competitive factors with other Spanish-language broadcasters, and changing demographic preferences of audiences. We have previously noted a trend for advertising to move increasingly from traditional media, such as radio, to new media, such as digital media, and we expect this trend to continue. This trend has had a more significant impact on our radio revenue as compared to television revenue, and we expect that this trend will also continue.

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Cost of revenue in our digital segment increased to $106.9 million for the year ended December 31, 2020 from $36.8 million for the year ended December 31, 2019, an increase of $70.1 million, primarily due to increased costs of revenue associated with Cisneros Interactive during the fourth quarter of 2020, following its acquisition during the fourth quarter of 2020, which did not incur cost of revenue for us in prior periods.

Operating expenses decreased to $153.3 million for the year ended December 31, 2020 from $173.4 million for the year ended December 31, 2019, a decrease of approximately $20.1 million. Of the overall decrease, approximately $3.5 million was attributable to our television segment and was primarily due to decreases in salary expense associated with furloughs and layoffs, payroll tax expense and expenses associated with the decrease in local and national advertising revenue. Additionally, approximately $1.7 million of the overall decrease was attributable to our digital segment primarily due to decreases in salary expense associated with furloughs and layoffs, and expenses associated with the decrease in advertising revenue as a result of declines in pre-acquisition digital revenue, partially offset by an increase associated with the acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which did not incur direct operating expenses for us in prior periods. Additionally, approximately $14.9 million of the overall decrease was attributable to our radio segment and was primarily due to decreases in salary expense associated with furloughs and layoffs, payroll tax expense and expenses associated with the decrease in advertising revenue.

Corporate expenses decreased to $27.8 million for the year ended December 31, 2020 from $28.1 million for the year ended December 31, 2019, a decrease of $0.3 million. The decrease was primarily due to decreases in audit fees, travel and rent expense. These decreases were partially offset by expenses for legal and financial due diligence related to the acquisition of a majority interest in Cisneros Interactive.

Our historical revenues have primarily been denominated in U.S. dollars, and the majority of our current revenues continue to be, and are expected to remain, denominated in U.S. dollars. However, our operating expenses are generally denominated in the currencies of the countries in which our operations are located, and we have operations in countries other than the United States, primarily those operations related to our digital business. As a result, we have operating expense, attributable to foreign currency, that is primarily related to the operations related to our digital business. Foreign currency gain was $1.1 million for the year ended December 31, 2020, compared to foreign currency loss of $0.8 million for the year ended December 31, 2019, primarily due to currency fluctuations that affected our digital segment operations located outside the United States.

Impairment charge related to certain FCC licenses in our television and radio reporting units was $23.5 million and $9.0 million, respectively, for the year ended December 31, 2020. Impairment charge related to goodwill in our digital reporting unit was $0.8 million for the year ended December 31, 2020. Impairment charges related to intangibles subject to amortization and property and equipment in our digital reporting unit was $5.3 million and $1.5 million, respectively, for the year ended December 31, 2020.

Impairment charge related to goodwill in our digital reporting unit was $27.7 million for the year ended December 31, 2019. Impairment charge related to indefinite life intangible assets in our television and radio reporting units was $4.2 million for the year ended December 31, 2019. We also recorded an impairment charge of $0.2 million for the year ended December 31, 2019 to reflect the fair market value of our assets held for sale.

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Segment Results

The following represents selected unaudited segment information:

	Three Months Ended									Twelve Months Ended
	December 31,									December 31,
		2020			2019		% Change				2020			2019	% Change
Net Revenue
Television	$	50,516		$	36,909			37	%	$	154,456		$	149,654		3	%
Digital		104,950			20,020			424	%		143,309			68,908		108	%
Radio		16,217			13,909			17	%		46,261			55,013		(16	)%
Total	$	171,683		$	70,838			142	%	$	344,026		$	273,575		26	%
Cost of Revenue  - Digital (1)	$	85,326		$	10,314			727	%	$	106,928		$	36,757		191	%
Operating Expenses (1)
Television		22,422			21,726			3	%		80,893			84,416		(4	)%
Digital		12,228			8,091			51	%		30,631			32,261		(5	)%
Radio		11,295			14,352			(21	)%		41,789			56,700		(26	)%
Total	$	45,945		$	44,169			4	%	$	153,313		$	173,377		(12	)%
Corporate Expenses (1)	$	9,296		$	7,887			18	%	$	27,807		$	28,067		(1	)%
Foreign currency (gain) loss	$	(1,725	)	$	(223	)		674	%	$	(1,052	)	$	754	*
Consolidated adjusted EBITDA (1)	$	32,646		$	11,056			195	%	$	60,419		$	41,209		47	%

(1) Cost of revenue, operating expenses, corporate expenses, and consolidated adjusted EBITDA are defined on page 1.

Notice of Conference Call

Entravision Communications Corporation will hold a conference call to discuss its 2020 fourth quarter results on March 11, 2021 at 5 p.m. Eastern Time. To access the conference call, please dial (877) 407-9716 (U.S.) or (201) 493-6779 (Int’l) ten minutes prior to the start time and reference Conference ID number 13716833. The call will also be available via live webcast on the investor relations portion of the Company's website located at www.entravision.com.

About Entravision Communications Corporation

Entravision is a diversified global media, marketing and technology company serving clients throughout the United States and in more than 20 countries across Latin America, Europe, and Asia.  Entravision has 54 television stations and is the largest affiliate group of the Univision and UniMás television networks, and 48 Spanish-language radio stations that feature nationally recognized, award-winning talent.  Our dynamic digital portfolio includes Entravision Digital, which serves SMBs in high-density U.S. Latino markets and provides cutting-edge mobile programmatic solutions and demand-side platforms that allow advertisers to execute performance campaigns using machine-learned bidding algorithms, along with Cisneros Interactive, a leader in digital advertising solutions in the Latin American and U.S. Hispanic markets representing major technology platforms.  Shares of Entravision Class A Common Stock trade on The New York Stock Exchange under the ticker symbol: EVC. Learn more about all of our media, marketing and technology offerings at entravision.com or connect with us on LinkedIn and Facebook.

Forward Looking Statements

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

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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.

For more information, please contact:

Christopher T. Young	Kimberly Esterkin
Chief Financial Officer	ADDO Investor Relations
Entravision Communications Corporation	310-829-5400
310-447-3870	evc@addoir.com

# # #

(Financial Table Follows)

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Entravision Communications Corporation

Consolidated Balance Sheets

(In thousands; unaudited)

	December 31,			December 31,
	2020			2019
ASSETS
Current assets
Cash and cash equivalents	$	119,162		$	33,123
Marketable securities		27,988			91,662
Restricted Cash		749			734
Trade receivables, net of allowance for doubtful accounts		141,963			71,406
Assets held for sale		2,141			950
Prepaid expenses and other current assets		15,557			11,557
Total current assets		307,560			209,432
Property and equipment, net		72,004			79,642
Intangible assets subject to amortization, net		49,412			16,772
Intangible assets not subject to amortization		216,653			252,544
Goodwill		57,849			46,511
Operating leases right of use asset		33,525			43,837
Other assets		7,643			7,462
Total assets	$	744,646		$	656,200
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of long-term debt	$	3,000		$	3,000
Accounts payable and accrued expenses		124,150			53,931
Operating lease liabilities		7,290			9,056
Total current liabilities		134,440			65,987
Long-term debt, less current maturities, net of unamortized debt issuance costs		210,454			213,024
Long-term operating lease liabilities		31,775			41,387
Other long-term liabilities		3,732			3,371
Deferred income taxes		54,980			44,259
Total liabilities		435,381			368,028
Redeemable noncontrolling interest		33,285			—
Stockholders' equity
Class A common stock		6			6
Class B common stock		2			2
Class U common stock		1			1
Additional paid-in capital		828,813			836,170
Accumulated deficit		(551,786	)		(547,876	)
Accumulated other comprehensive income (loss)		(1,056	)		(131	)
Total stockholders' equity		275,980			288,172
Total liabilities and stockholders' equity	$	744,646		$	656,200

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Entravision Communications Corporation

Consolidated Statements of Operations

(In thousands, except share and per share data)

(Unaudited)

	Three-Month Period						Twelve-Month Period
	Ended December 31,						Ended December 31,
	2020			2019			2020			2019
Net revenue	$	171,683		$	70,838		$	344,026		$	273,575
Expenses:
Cost of revenue - digital		85,326			10,314			106,928			36,757
Direct operating expenses		31,912			30,020			104,909			119,412
Selling, general and administrative expenses		14,033			14,149			48,404			53,965
Corporate expenses		9,296			7,887			27,807			28,067
Depreciation and amortization		4,963			4,236			17,282			16,648
Change in fair value of contingent consideration		—			(4,102	)		—			(6,478	)
Impairment charge		200			654			40,035			32,097
Foreign currency (gain) loss		(1,725	)		(223	)		(1,052	)		754
Other operating (gain) loss		(1,346	)		(829	)		(6,895	)		(5,994	)
		142,659			62,106			337,418			275,228
Operating income (loss)		29,024			8,732			6,608			(1,653	)
Interest expense		(1,592	)		(3,102	)		(8,265	)		(13,683	)
Interest income		118			752			1,748			3,353
Dividend income		2			171			28			918
Gain (loss) on debt extinguishment		—			(255	)		—			(255	)
Income before income taxes		27,552			6,298			119			(11,320	)
Income tax (expense) benefit		(4,701	)		1,107			(1,506	)		(8,158	)
Income (loss) before equity in net income (loss) of nonconsolidated affiliate		22,851			7,405			(1,387	)		(19,478	)
Equity in net income (loss) of nonconsolidated affiliate		—			(45	)		—			(234	)
Net income (loss)		22,851			7,360			(1,387	)		(19,712	)
Net (income) loss attributable to redeemable noncontrolling interest		(2,523	)		—			(2,523	)		-
Net income (loss) attributable to common stockholders	$	20,328		$	7,360		$	(3,910	)	$	(19,712	)
Basic and diluted earnings per share:
Net income (loss) per share attributable to common stockholders, basic and diluted	$	0.24		$	0.09		$	(0.05	)	$	(0.23	)
Cash dividends declared per common share, basic and diluted	$	0.03		$	0.05		$	0.13		$	0.20
Weighted average common shares outstanding, basic		84,297,592			84,226,135			84,231,212			85,107,301
Weighted average common shares outstanding, diluted		85,985,630			85,449,374			84,231,212			85,107,301

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Entravision Communications Corporation

Consolidated Statements of Cash Flows

(In thousands; unaudited)

	Three-Month Period						Twelve-Month Period
	Ended December 31,						Ended December 31,
	2020			2019			2020			2019
Cash flows from operating activities:
Net income (loss)	$	22,851		$	7,360		$	(1,387	)	$	(19,712	)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		4,963			4,236			17,282			16,648
Impairment charge		200			654			40,035			32,097
Deferred income taxes		2,519			(1,630	)		(6,225	)		5,311
Non-cash interest		158			166			649			881
Amortization of syndication contracts		121			131			504			505
Payments on syndication contracts		(133	)		(124	)		(458	)		(543	)
Equity in net (income) loss of nonconsolidated affiliate		—			45			—			234
Non-cash stock-based compensation		2,717			1,923			5,125			4,377
(Gain) loss on disposal of property and equipment		36			—			(731	)		158
(Gain) loss on debt extinguishment		—			255			—			255
Changes in assets and liabilities:
(Increase) decrease in trade receivables, net		(41,424	)		(2,093	)		(27,139	)		8,610
(Increase) decrease in prepaid expenses and other current assets		6,110			2,946			12,823			2,102
Increase (decrease) in accounts payable, accrued expenses and other liabilities		39,614			(5,816	)		22,971			(19,384	)
Net cash provided by operating activities		37,732			8,053			63,449			31,539
Cash flows from investing activities:
Proceeds from sale of property and equipment and intangibles		—			—			5,089			—
Purchases of property and equipment		(1,319	)		(4,101	)		(9,060	)		(25,283	)
Purchases of intangibles		—			(2,300	)		(158	)		(2,300	)
Purchase of a businesses, net of cash acquired		(21,261	)		—			(21,261	)		—
Purchases of marketable securities		—			—			—			(1,400	)
Proceeds from marketable securities		25,000			15,766			63,480			43,647
Purchases of investments		—			—			—			(300	)
Deposits on acquisition		—			147			—			—
Net cash provided by (used in) investing activities		2,420			9,512			38,090			14,364
Cash flows from financing activities:
Tax payments related to shares withheld for share-based compensation plans		(1,411	)		(915	)		(1,426	)		(1,688	)
Payments on long-term debt		(750	)		(25,750	)		(3,000	)		(28,000	)
Dividends paid		(2,103	)		(4,195	)		(10,531	)		(16,962	)
Repurchase of Class A common stock		—			(2,208	)		(525	)		(12,565	)
Payments of capitalized debt offering and issuance costs		—			—			—			(225	)
Net cash used in financing activities		(4,264	)		(33,068	)		(15,482	)		(59,440	)
Effect of exchange rates on cash, cash equivalents and restricted cash		4			(79	)		(3	)		(71	)
Net increase (decrease) in cash, cash equivalents and restricted cash		35,892			(15,582	)		86,054			(13,608	)
Cash, cash equivalents and restricted cash:
Beginning		84,019			49,439			33,857			47,465
Ending	$	119,911		$	33,857		$	119,911		$	33,857

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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						Twelve-Month Period
	Ended December 31,						Ended December 31,
		2020			2019			2020			2019
Consolidated adjusted EBITDA (1)	$	32,646		$	11,056		$	60,419		$	41,209
EBITDA attributable to redeemable noncontrolling interest		3,436			—			3,436			—
Interest expense		(1,592	)		(3,102	)		(8,265	)		(13,683	)
Interest income		118			752			1,748			3,353
Gain (loss) on debt extinguishment		—			(255	)		—			(255	)
Income tax (expense) benefit		(4,701	)		1,107			(1,506	)		(8,158	)
Amortization of syndication contracts		(121	)		(131	)		(504	)		(505	)
Payments on syndication contracts		133			124			458			543
Non-cash stock-based compensation included in direct operating
expenses		(865	)		(408	)		(1,247	)		(732	)
Non-cash stock-based compensation included in corporate expenses		(1,852	)		(1,515	)		(3,878	)		(3,645	)
Depreciation and amortization		(4,963	)		(4,236	)		(17,282	)		(16,648	)
Change in fair value of contingent consideration		—			4,102			—			6,478
Non-recurring severance charge		(536	)		(435	)		(1,654	)		(2,250	)
Dividend income		2			171			28			918
Other income (loss)		1,346			829			6,895			5,994
Impairment charge		(200	)		(654	)		(40,035	)		(32,097	)
Equity in net income (loss) of nonconsolidated affiliates		—			(45	)		—			(234	)
Net (income) loss attributable to redeemable noncontrolling interest		(2,523	)		—			(2,523	)		—
Net income (loss) attributable to common stockholders		20,328			7,360			(3,910	)		(19,712	)
Depreciation and amortization		4,963			4,236			17,282			16,648
Impairment charge		200			654			40,035			32,097
Deferred income taxes		2,519			(1,630	)		(6,225	)		5,311
Amortization of debt issuance costs		158			166			649			881
Amortization of syndication contracts		121			131			504			505
Payments on syndication contracts		(133	)		(124	)		(458	)		(543	)
Equity in net (income) loss of nonconsolidated affiliate		—			45			—			234
Non-cash stock-based compensation		2,717			1,923			5,125			4,377
(Gain) loss on disposal of property and equipment		36			—			(731	)		158
(Gain) loss on debt extinguishment		—			255			—			255
Net (income) loss attributable to redeemable noncontrolling interest		2,523			—			2,523			—
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		(41,424	)		(2,093	)		(27,139	)		8,610
(Increase) decrease in prepaid expenses and other assets		6,110			2,946			12,823			2,102
Increase (decrease) in accounts payable, accrued expenses and other liabilities		39,614			(5,816	)		22,971			(19,384	)
Net cash provided by (used in ) operating activities	$	37,732		$	8,053		$	63,449		$	31,539

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

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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						Twelve-Month Period
	Ended December 31,						Ended December 31,
		2020			2019			2020			2019
Consolidated adjusted EBITDA (1)	$	32,646		$	11,056		$	60,419		$	41,209
Net, cash interest expense (1)		(1,316	)		(2,184	)		(5,868	)		(9,449	)
Dividend income		2			171			28			918
Cash paid for income taxes		(2,182	)		(523	)		(7,731	)		(2,847	)
Capital expenditures (2)		(1,319	)		(4,101	)		(9,060	)		(25,283	)
FCC reimbursement		1,346			829			6,895			5,994
Non-recurring cash severance charge		(536	)		(435	)		(1,654	)		(2,250	)
Free cash flow (1)		28,641			4,813			43,029			8,292
Capital expenditures (2)		1,319			4,101			9,060			25,283
EBITDA attributable to redeemable noncontrolling interest		3,436			—			3,436			—
Change in fair value of contingent consideration		—			4,102			—			6,478
(Gain) loss on disposal of property and equipment		36			—			(731	)		158
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		(41,424	)		(2,093	)		(27,139	)		8,610
(Increase) decrease in prepaid expenses and other assets		6,110			2,946			12,823			2,102
Increase (decrease) in accounts payable, accrued expenses and other liabilities		39,614			(5,816	)		22,971			(19,384	)
Cash Flows From Operating Activities	$	37,732		$	8,053		$	63,449		$	31,539

(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.

XML

Document and Entity Information	Mar. 11, 2021
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Mar. 11, 2021
Entity Registrant Name	ENTRAVISION COMMUNICATIONS CORP
Entity Central Index Key	0001109116
Entity Emerging Growth Company	false
Title of 12(b) Security	Class A Common Stock
Trading Symbol	EVC
Security Exchange Name	NYSE
Entity File Number	001-15997
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	95-4783236
Entity Address, Address Line One	2425 Olympic Boulevard
Entity Address, Address Line Two	Suite 6000 West
Entity Address, City or Town	Santa Monica
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	90404
City Area Code	310
Local Phone Number	447-3870
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false