Entravision Communications Corporation Reports Second Quarter 2018 Results
- Announces Quarterly Cash Dividend of $0.05 Per Share -
SANTA MONICA, Calif., Aug. 2, 2018 /PRNewswire/ -- Entravision Communications Corporation (NYSE: EVC) today reported financial results for the three- and six-month period ended June 30, 2018.
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, | |||||||||||||||||||||
|
2018 |
2017 |
% |
2018 |
2017 |
% |
|||||||||||||||||
|
Net revenue |
$ |
74,329 |
$ |
70,509 |
5 |
% |
$ |
141,167 |
$ |
128,019 |
10 |
% | ||||||||||
|
Cost of revenue - digital (1) |
11,384 |
8,762 |
30 |
% |
22,009 |
10,514 |
109 |
% | ||||||||||||||
|
Operating expenses (2) |
43,790 |
41,945 |
4 |
% |
88,117 |
80,237 |
10 |
% | ||||||||||||||
|
Corporate expenses (3) |
6,266 |
5,619 |
12 |
% |
12,241 |
11,486 |
7 |
% | ||||||||||||||
|
Consolidated adjusted EBITDA (4) |
14,866 |
14,924 |
(0) |
% |
21,803 |
27,494 |
(21) |
% | ||||||||||||||
|
Free cash flow (5) |
$ |
8,664 |
$ |
5,643 |
54 |
% |
$ |
10,255 |
$ |
12,868 |
(20) |
% | ||||||||||
|
Net income (loss) |
$ |
4,840 |
$ |
3,495 |
38 |
% |
$ |
3,033 |
$ |
6,113 |
(50) |
% | ||||||||||
|
Net income (loss) per share, basic and diluted |
$ |
0.05 |
$ |
0.04 |
25 |
% |
$ |
0.03 |
$ |
0.07 |
(57) |
% | ||||||||||
|
Weighted average common shares outstanding, basic |
88,959,935 |
90,354,982 |
89,635,759 |
90,296,057 |
||||||||||||||||||
|
Weighted average common shares outstanding, diluted |
90,021,949 |
92,033,111 |
90,805,086 |
91,897,150 |
||||||||||||||||||
|
(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) |
Operating expenses include direct operating and 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 June 30, 2018 and 2017, respectively, and $0.3 million and $0.5 million of non-cash stock-based compensation for the six-month periods ended June 30, 2018 and 2017, respectively. Operating expenses do 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 $1.1 million and $0.8 million of non-cash stock-based compensation for the three-month periods ended June 30, 2018 and 2017, respectively, and $2.1 million and $1.5 million of non-cash stock-based compensation for the six-month periods ended June 30, 2018 and 2017, 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 income (loss), non-recurring cash expenses, 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, 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), non-recurring cash expenses, 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, 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 revenue from FCC spectrum incentive auction less related cash expenses. 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 second quarter, we achieved revenue growth driven by increases in our digital media segment. This growth in our digital media segment offsets a decrease in our television segment, while our radio segment was flat. We also improved our free cash flow and net income over last year's second quarter. Additionally, we continued to build our digital footprint through our acquisition of Smadex, a digital advertising technology company, while implementing steps to more efficiently align operations and reduce costs. Looking ahead, we remain well positioned to build on our success in further attracting Latino and other audiences worldwide, and expanding our advertiser base 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 $0.05 per share of the Company's Class A, Class B and Class U common stock, in an aggregate amount of approximately $4.5 million. The quarterly dividend will be payable on September 28, 2018 to shareholders of record as of the close of business on September 14, 2018, and the common stock will trade ex-dividend on September 13, 2018. 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.
Financial Results
|
Three-Month Period Ended June 30, 2018 Compared to Three-Month Period Ended June 30, 2017 (Unaudited) |
|||||||||||
|
Three-Month Period |
|||||||||||
|
Ended June 30, |
|||||||||||
|
2018 |
2017 |
% Change |
|||||||||
|
Net revenue |
$ |
74,329 |
$ |
70,509 |
5 |
% | |||||
|
Cost of revenue - digital (1) |
11,384 |
8,762 |
30 |
% | |||||||
|
Operating expenses (1) |
43,790 |
41,945 |
4 |
% | |||||||
|
Corporate expenses (1) |
6,266 |
5,619 |
12 |
% | |||||||
|
Depreciation and amortization |
4,019 |
4,577 |
(12) |
% | |||||||
|
Change in fair value of contingent consideration |
(913) |
- |
* |
||||||||
|
Foreign currency (gain) loss |
(17) |
351 |
* |
||||||||
|
Operating income (loss) |
9,800 |
9,255 |
6 |
% | |||||||
|
Interest expense, net |
(2,962) |
(3,573) |
(17) |
% | |||||||
|
Dividend income |
417 |
- |
* |
||||||||
|
Other income (loss) |
273 |
- |
* |
||||||||
|
Income (loss) before income taxes |
7,528 |
5,682 |
32 |
% | |||||||
|
Income tax benefit (expense) |
(2,652) |
(2,119) |
25 |
% | |||||||
|
Net income (loss) before equity in net income (loss) of nonconsolidated affiliates |
4,876 |
3,563 |
37 |
% | |||||||
|
Equity in net income (loss) of nonconsolidated affiliates, net of tax |
(36) |
(68) |
(47) |
% | |||||||
|
Net income (loss) |
$ |
4,840 |
$ |
3,495 |
38 |
% | |||||
|
(1) |
Cost of revenue, operating expenses and corporate expenses are defined on page 1. |
Net revenue increased to $74.3 million for the three-month period ended June 30, 2018 from $70.5 million for the three-month period ended June 30, 2017, an increase of $3.8 million. Of the overall increase, approximately $5.0 million was attributable to our digital segment and was primarily due to growth in the Headway business which was acquired during the second quarter of 2017. The overall increase was partially offset by a decrease in our television segment of approximately $1.3 million primarily due to decreases in national and local advertising revenue, partially offset by an increase in retransmission consent revenue and an increase in political advertising revenue, the latter of which was not material in 2017. Revenue in our radio segment remained constant with an increase in revenue from the 2018 FIFA World Cup offset by decreases in local and national revenue.
Cost of revenue in our digital media segment increased to $11.4 million for the three-month period ended June 30, 2018 from $8.8 million for the three-month period ended June 30, 2017, an increase of $2.6 million, primarily due to the increased revenue in our digital segment.
Operating expenses increased to $43.8 million for the three-month period ended June 30, 2018 from $41.9 million for the three-month period ended June 30, 2017, an increase of $1.9 million. The increase was primarily attributable to our digital segment and was primarily driven by expenses associated with the increase in revenue and an increase in salary expense. We also had an increase in operating expenses in our television segment due to the acquisition of station KMIR-TV during the fourth quarter of 2017, which did not contribute to operating expenses in the prior year period, partially offset by a decrease in expenses associated with the decrease in advertising revenue and a decrease in salary expense.
Corporate expenses increased to $6.3 million for the three-month period ended June 30, 2018 from $5.6 million for the three-month period ended June 30, 2017, an increase of $0.7 million. The increase was primarily due to legal and financial due diligence costs related to the Smadex acquisition and an increase in non-cash stock-based compensation expense.
|
Six-Month Period Ended June 30, 2018 Compared to Six-Month Period Ended June 30, 2017 (Unaudited) | |||||||||||
|
Six-Month Period |
|||||||||||
|
Ended June 30, |
|||||||||||
|
2018 |
2017 |
% Change |
|||||||||
|
Net revenue |
$ |
141,167 |
$ |
128,019 |
10 |
% | |||||
|
Cost of revenue - digital (1) |
22,009 |
10,514 |
109 |
% | |||||||
|
Operating expenses (1) |
88,117 |
80,237 |
10 |
% | |||||||
|
Corporate expenses (1) |
12,241 |
11,486 |
7 |
% | |||||||
|
Depreciation and amortization |
7,958 |
8,123 |
(2) |
% | |||||||
|
Change in fair value of contingent consideration |
1,187 |
- |
* |
||||||||
|
Foreign currency (gain) loss |
196 |
351 |
(44) |
% | |||||||
|
Operating income (loss) |
9,459 |
17,308 |
(45) |
% | |||||||
|
Interest expense, net |
(5,447) |
(7,109) |
(23) |
% | |||||||
|
Dividend income |
545 |
- |
* |
||||||||
|
Other income (loss) |
295 |
- |
* |
||||||||
|
Income (loss) before income taxes |
4,852 |
10,199 |
(52) |
% | |||||||
|
Income tax benefit (expense) |
(1,721) |
(4,018) |
(57) |
% | |||||||
|
Net income (loss) before equity in net income (loss) of nonconsolidated affiliates |
3,131 |
6,181 |
(49) |
% | |||||||
|
Equity in net income (loss) of nonconsolidated affiliates, net of tax |
(98) |
(68) |
44 |
% | |||||||
|
Net income (loss) |
$ |
3,033 |
$ |
6,113 |
(50) |
% | |||||
|
(1) |
Cost of revenue, operating expenses and corporate expenses are defined on page 1. |
Net revenue increased to $141.2 million for the six-month period ended June 30, 2018 from $128.0 million for the six-month period ended June 30, 2017, an increase of $13.2 million. Of the overall increase, approximately $19.1 million was attributable to our digital segment and was primarily due to the acquisition of Headway during the second quarter of 2017, which did not contribute to our results of operations for the full six-month period in 2017. The overall increase was partially offset by a decrease in our television segment of approximately $4.5 million primarily due to decreases in national and local advertising revenue, partially offset by an increase in retransmission consent revenue and an increase in political advertising revenue, the latter of which was not material in 2017. Additionally, the overall increase was partially offset by a decrease in our radio segment of approximately $1.6 million primarily due to decreases in local and national advertising revenue, partially offset by an increase in net revenue from the 2018 FIFA World Cup.
Cost of revenue in our digital media segment increased to $22.0 million for the six-month period ended June 30, 2018 from $10.5 million for the six-month period ended June 30, 2017, an increase of $11.5 million, primarily due to the acquisition of Headway during the second quarter of 2017, which did not contribute to our results of operations for the full six-month period in 2017.
Operating expenses increased to $88.1 million for the six-month period ended June 30, 2018 from $80.2 million for the six-month period ended June 30, 2017, an increase of $7.9 million. The increase was primarily due to the acquisition of Headway in our digital segment during the second quarter of 2017, which did not contribute to operating expenses for the full six-month period in the prior year. Additionally, approximately $1.8 million of the overall increase was attributable to our television segment primarily due to the acquisition of station KMIR-TV in the fourth quarter of 2017, which did not contribute to operating expenses in the prior year period, partially offset by a decrease in expenses associated with the decrease in advertising revenue and a decrease in salary expense.
Corporate expenses increased to $12.2 million for the six-month period ended June 30, 2018 from $11.5 million for the six-month period ended June 30, 2017, an increase of $0.7 million. The increase was primarily due to legal and financial due diligence costs related to the Smadex acquisition and an increase in non-cash stock-based compensation expense, partially offset by a decrease in due diligence costs incurred in prior year related to the Headway acquisition.
Segment Results
The following represents selected unaudited segment information:
|
Three-Month Period |
Six-Month Period |
||||||||||||||||||||||
|
Ended June 30, |
Ended June 30, |
||||||||||||||||||||||
|
2018 |
2017 |
% Change |
2018 |
2017 |
% Change |
||||||||||||||||||
|
Net Revenue |
|||||||||||||||||||||||
|
Television |
$ |
36,531 |
$ |
37,764 |
(3) |
% |
$ |
71,022 |
$ |
75,474 |
(6) |
% | |||||||||||
|
Radio |
17,240 |
17,163 |
0 |
% |
31,343 |
32,882 |
(5) |
% | |||||||||||||||
|
Digital |
20,558 |
15,582 |
32 |
% |
38,802 |
19,663 |
97 |
% | |||||||||||||||
|
Total |
$ |
74,329 |
$ |
70,509 |
5 |
% |
$ |
141,167 |
$ |
128,019 |
10 |
% | |||||||||||
|
Cost of Revenue - digital (1) |
|||||||||||||||||||||||
|
Digital |
$ |
11,384 |
$ |
8,762 |
30 |
% |
$ |
22,009 |
$ |
10,514 |
109 |
% | |||||||||||
|
Operating Expenses (1) |
|||||||||||||||||||||||
|
Television |
20,589 |
20,150 |
2 |
% |
42,111 |
40,355 |
4 |
% | |||||||||||||||
|
Radio |
15,437 |
15,620 |
(1) |
% |
30,717 |
31,341 |
(2) |
% | |||||||||||||||
|
Digital |
7,764 |
6,175 |
26 |
% |
15,289 |
8,541 |
79 |
% | |||||||||||||||
|
Total |
$ |
43,790 |
$ |
41,945 |
4 |
% |
$ |
88,117 |
$ |
80,237 |
10 |
% | |||||||||||
|
Corporate Expenses (1) |
$ |
6,266 |
$ |
5,619 |
12 |
% |
$ |
12,241 |
$ |
11,486 |
7 |
% | |||||||||||
|
Consolidated adjusted EBITDA (1) |
$ |
14,866 |
$ |
14,924 |
(0) |
% |
$ |
21,803 |
$ |
27,494 |
(21) |
% | |||||||||||
|
(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 2018 second quarter results on August 2, 2018 at 5 p.m. Eastern Time. To access the conference call, please dial 412-317-5440 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 global media company that, through its television and radio segments, reaches and engages U.S. Hispanics across acculturation levels and media channels. Additionally, our digital segment, whose operations are located primarily in Spain, Mexico, and Argentina and other countries in Latin America, reaches a global market. The Company's expansive portfolio encompasses integrated marketing and media solutions, comprised of television, radio, and digital properties and data analytics services. Entravision has 55 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. Entravision's Pulpo digital advertising unit is the #1-ranked online advertising platform in Hispanic reach according to comScore Media Metrix®, and Entravision's digital group also includes Headway, a leading provider of mobile, programmatic, data and performance digital marketing solutions primarily in the United States, Mexico and other markets in Latin America. 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 Corporation Consolidated Balance Sheets (In thousands; unaudited) | |||||||
|
June 30, |
December 31, |
||||||
|
2018 |
2017 |
||||||
|
ASSETS |
|||||||
|
Current assets |
|||||||
|
Cash and cash equivalents |
$ |
108,892 |
$ |
39,560 |
|||
|
Marketable securities |
132,435 |
- |
|||||
|
Restricted cash |
769 |
222,294 |
|||||
|
Trade receivables, net of allowance for doubtful accounts |
76,378 |
84,348 |
|||||
|
Assets held for sale |
1,179 |
- |
|||||
|
Prepaid expenses and other current assets |
11,990 |
6,260 |
|||||
|
Total current assets |
331,643 |
352,462 |
|||||
|
Property and equipment, net |
58,562 |
60,337 |
|||||
|
Intangible assets subject to amortization, net |
25,828 |
26,758 |
|||||
|
Intangible assets not subject to amortization |
254,506 |
251,163 |
|||||
|
Goodwill |
73,566 |
70,557 |
|||||
|
Other assets |
4,442 |
4,690 |
|||||
|
Total assets |
$ |
748,547 |
$ |
765,967 |
|||
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||
|
Current liabilities |
|||||||
|
Current maturities of long-term debt |
$ |
3,000 |
$ |
3,000 |
|||
|
Accounts payable and accrued expenses |
52,787 |
57,563 |
|||||
|
Deferred revenue |
3,386 |
1,959 |
|||||
|
Total current liabilities |
59,173 |
62,522 |
|||||
|
Long-term debt, less current maturities, net of unamortized debt issuance costs |
291,237 |
292,489 |
|||||
|
Other long-term liabilities |
19,553 |
21,447 |
|||||
|
Deferred income taxes |
42,326 |
40,639 |
|||||
|
Total liabilities |
412,289 |
417,097 |
|||||
|
Stockholders' equity |
|||||||
|
Class A common stock |
6 |
7 |
|||||
|
Class B common stock |
2 |
2 |
|||||
|
Class U common stock |
1 |
1 |
|||||
|
Additional paid-in capital |
874,508 |
888,650 |
|||||
|
Accumulated deficit |
(536,697) |
(539,730) |
|||||
|
Accumulated other comprehensive income (loss) |
(1,562) |
(60) |
|||||
|
Total stockholders' equity |
336,258 |
348,870 |
|||||
|
Total liabilities and stockholders' equity |
$ |
748,547 |
$ |
765,967 |
|||
|
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, |
||||||||||||||
|
2018 |
2017 |
2018 |
2017 |
||||||||||||
|
Net revenue |
$ |
74,329 |
$ |
70,509 |
$ |
141,167 |
$ |
128,019 |
|||||||
|
Expenses: |
|||||||||||||||
|
Cost of revenue - digital |
11,384 |
8,762 |
22,009 |
10,514 |
|||||||||||
|
Direct operating expenses |
31,117 |
29,915 |
62,150 |
57,007 |
|||||||||||
|
Selling, general and administrative expenses |
12,673 |
12,030 |
25,967 |
23,230 |
|||||||||||
|
Corporate expenses |
6,266 |
5,619 |
12,241 |
11,486 |
|||||||||||
|
Depreciation and amortization |
4,019 |
4,577 |
7,958 |
8,123 |
|||||||||||
|
Change in fair value of contingent consideration |
(913) |
- |
1,187 |
- |
|||||||||||
|
Foreign currency (gain) loss |
(17) |
351 |
196 |
351 |
|||||||||||
|
64,529 |
61,254 |
131,708 |
110,711 |
||||||||||||
|
Operating income (loss) |
9,800 |
9,255 |
9,459 |
17,308 |
|||||||||||
|
Interest expense |
(4,001) |
(3,683) |
(7,399) |
(7,328) |
|||||||||||
|
Interest income |
1,039 |
110 |
1,952 |
219 |
|||||||||||
|
Dividend income |
417 |
- |
545 |
- |
|||||||||||
|
Other income (loss) |
273 |
- |
295 |
- |
|||||||||||
|
Income (loss) before income taxes |
7,528 |
5,682 |
4,852 |
10,199 |
|||||||||||
|
Income tax benefit (expense) |
(2,652) |
(2,119) |
(1,721) |
(4,018) |
|||||||||||
|
Income (loss) before equity in net income (loss) of nonconsolidated affiliate |
4,876 |
3,563 |
3,131 |
6,181 |
|||||||||||
|
Equity in net income (loss) of nonconsolidated affiliate, net of tax |
(36) |
(68) |
(98) |
(68) |
|||||||||||
|
Net income (loss) |
$ |
4,840 |
$ |
3,495 |
$ |
3,033 |
$ |
6,113 |
|||||||
|
Basic and diluted earnings per share: |
|||||||||||||||
|
Net income (loss) per share, basic and diluted |
$ |
0.05 |
$ |
0.04 |
$ |
0.03 |
$ |
0.07 |
|||||||
|
Cash dividends declared per common share |
$ |
0.05 |
$ |
0.03 |
$ |
0.05 |
$ |
0.06 |
|||||||
|
Weighted average common shares outstanding, basic |
88,959,935 |
90,354,982 |
89,635,759 |
90,296,057 |
|||||||||||
|
Weighted average common shares outstanding, diluted |
90,021,949 |
92,033,111 |
90,805,086 |
91,897,150 |
|||||||||||
|
Entravision Communications Corporation Consolidated Statements of Cash Flows (In thousands; unaudited) | |||||||||||||||
|
Three-Month Period |
Six-Month Period |
||||||||||||||
|
Ended June 30, |
Ended June 30, |
||||||||||||||
|
2018 |
2017 |
2018 |
2017 |
||||||||||||
|
Cash flows from operating activities: |
|||||||||||||||
|
Net income (loss) |
$ |
4,840 |
$ |
3,495 |
$ |
3,033 |
$ |
6,113 |
|||||||
|
Adjustments to reconcile net income (loss) to net cash provided by |
|||||||||||||||
|
Depreciation and amortization |
4,019 |
4,577 |
7,958 |
8,123 |
|||||||||||
|
Deferred income taxes |
2,043 |
1,955 |
1,029 |
3,428 |
|||||||||||
|
Non-cash interest expense |
414 |
186 |
538 |
369 |
|||||||||||
|
Amortization of syndication contracts |
176 |
109 |
352 |
218 |
|||||||||||
|
Payments on syndication contracts |
(174) |
(102) |
(360) |
(215) |
|||||||||||
|
Equity in net (income) loss of nonconsolidated affiliate |
36 |
68 |
98 |
68 |
|||||||||||
|
Non-cash stock-based compensation |
1,176 |
1,085 |
2,425 |
2,060 |
|||||||||||
|
Changes in assets and liabilities: |
|||||||||||||||
|
(Increase) decrease in accounts receivable |
(1,873) |
2,602 |
9,170 |
13,581 |
|||||||||||
|
(Increase) decrease in prepaid expenses and other assets |
(2,566) |
(556) |
(6,547) |
(1,447) |
|||||||||||
|
Increase (decrease) in accounts payable, accrued expenses |
5,197 |
(3,029) |
(780) |
(8,992) |
|||||||||||
|
Net cash provided by operating activities |
13,288 |
10,390 |
16,916 |
23,306 |
|||||||||||
|
Cash flows from investing activities: |
|||||||||||||||
|
Proceeds from sale of property and equipment and intangible assets |
33 |
- |
33 |
- |
|||||||||||
|
Purchases of property and equipment |
(2,680) |
(5,730) |
(5,710) |
(7,296) |
|||||||||||
|
Purchases of intangible assets |
- |
- |
(3,153) |
- |
|||||||||||
|
Purchases of businesses, net of cash acquired |
(3,563) |
(7,489) |
(3,563) |
(7,489) |
|||||||||||
|
Purchases of marketable securities |
- |
- |
(159,403) |
- |
|||||||||||
|
Proceeds from marketable securities |
25,000 |
- |
25,000 |
- |
|||||||||||
|
Purchases of investments |
(35) |
(1,950) |
(35) |
(2,200) |
|||||||||||
|
Deposits on acquisitions |
- |
- |
- |
(190) |
|||||||||||
|
Net cash provided by (used in) investing activities |
18,755 |
(15,169) |
(146,831) |
(17,175) |
|||||||||||
|
Cash flows from financing activities: |
|||||||||||||||
|
Proceeds from stock option exercises |
106 |
215 |
106 |
526 |
|||||||||||
|
Tax payments related to shares withheld for share-based compensation plans |
(12) |
- |
(2,239) |
- |
|||||||||||
|
Payments on long-term debt |
(750) |
(937) |
(1,500) |
(1,875) |
|||||||||||
|
Dividends paid |
(4,442) |
(2,826) |
(8,960) |
(5,647) |
|||||||||||
|
Repurchase of Class A common stock |
(5,258) |
- |
(7,660) |
- |
|||||||||||
|
Payments of contingent consideration |
(2,015) |
- |
(2,015) |
- |
|||||||||||
|
Net cash used in financing activities |
(12,371) |
(3,548) |
(22,268) |
(6,996) |
|||||||||||
|
Effect of exchange rates on cash, cash equivalents and restricted cash |
(4) |
(18) |
(10) |
(18) |
|||||||||||
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
19,668 |
(8,345) |
(152,193) |
(883) |
|||||||||||
|
Cash, cash equivalents and restricted cash: |
|||||||||||||||
|
Beginning |
89,993 |
68,982 |
261,854 |
61,520 |
|||||||||||
|
Ending |
$ |
109,661 |
$ |
60,637 |
$ |
109,661 |
$ |
60,637 |
|||||||
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, |
||||||||||||||
|
2018 |
2017 |
2018 |
2017 |
||||||||||||
|
Consolidated adjusted EBITDA (1) |
$ |
14,866 |
$ |
14,924 |
$ |
21,803 |
$ |
27,494 |
|||||||
|
Interest expense |
(4,001) |
(3,683) |
(7,399) |
(7,328) |
|||||||||||
|
Interest income |
1,039 |
110 |
1,952 |
219 |
|||||||||||
|
Dividend income |
417 |
- |
545 |
- |
|||||||||||
|
Income tax benefit (expense) |
(2,652) |
(2,119) |
(1,721) |
(4,018) |
|||||||||||
|
Equity in net loss of nonconsolidated affiliates |
(36) |
(68) |
(98) |
(68) |
|||||||||||
|
Amortization of syndication contracts |
(176) |
(109) |
(352) |
(218) |
|||||||||||
|
Payments on syndication contracts |
174 |
102 |
360 |
215 |
|||||||||||
|
Non-cash stock-based compensation included in direct operating expenses |
(76) |
(307) |
(292) |
(530) |
|||||||||||
|
Non-cash stock-based compensation included in corporate expenses |
(1,100) |
(778) |
(2,133) |
(1,530) |
|||||||||||
|
Depreciation and amortization |
(4,019) |
(4,577) |
(7,958) |
(8,123) |
|||||||||||
|
Change in fair value of contingent consideration |
913 |
- |
(1,187) |
- |
|||||||||||
|
Non-recurring cash severance charge |
(782) |
- |
(782) |
- |
|||||||||||
|
Other income (loss) |
273 |
- |
295 |
- |
|||||||||||
|
Net income (loss) |
4,840 |
3,495 |
3,033 |
6,113 |
|||||||||||
|
Depreciation and amortization |
4,019 |
4,577 |
7,958 |
8,123 |
|||||||||||
|
Deferred income taxes |
2,043 |
1,955 |
1,029 |
3,428 |
|||||||||||
|
Non-cash interest expense |
414 |
186 |
538 |
369 |
|||||||||||
|
Amortization of syndication contracts |
176 |
109 |
352 |
218 |
|||||||||||
|
Payments on syndication contracts |
(174) |
(102) |
(360) |
(215) |
|||||||||||
|
Equity in net (income) loss of nonconsolidated affiliate |
36 |
68 |
98 |
68 |
|||||||||||
|
Non-cash stock-based compensation |
1,176 |
1,085 |
2,425 |
2,060 |
|||||||||||
|
Changes in assets and liabilities: |
|||||||||||||||
|
(Increase) decrease in accounts receivable |
(1,873) |
2,602 |
9,170 |
13,581 |
|||||||||||
|
(Increase) decrease in prepaid expenses and other assets |
(2,566) |
(556) |
(6,547) |
(1,447) |
|||||||||||
|
Increase (decrease) in accounts payable, accrued expenses and other liabilities |
5,197 |
(3,029) |
(780) |
(8,992) |
|||||||||||
|
Cash flows from operating activities |
13,288 |
10,390 |
16,916 |
23,306 |
|||||||||||
|
(1) |
Consolidated adjusted EBITDA is defined on page 1. |
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 |
Six-Month Period |
||||||||||||||
|
Ended June 30, |
Ended June 30, |
||||||||||||||
|
2018 |
2017 |
2018 |
2017 |
||||||||||||
|
Consolidated adjusted EBITDA (1) |
$ |
14,866 |
$ |
14,924 |
$ |
21,803 |
$ |
27,494 |
|||||||
|
Net interest expense (1) |
(2,549) |
(3,387) |
(4,909) |
(6,740) |
|||||||||||
|
Dividend income |
417 |
- |
545 |
- |
|||||||||||
|
Cash paid for income taxes |
(608) |
(164) |
(692) |
(590) |
|||||||||||
|
Capital expenditures (2) |
(2,680) |
(5,730) |
(5,710) |
(7,296) |
|||||||||||
|
Non-recurring cash severance charge |
(782) |
- |
(782) |
- |
|||||||||||
|
Free cash flow (1) |
8,664 |
5,643 |
10,255 |
12,868 |
|||||||||||
|
Capital expenditures (2) |
2,680 |
5,730 |
5,710 |
7,296 |
|||||||||||
|
Other income (loss) |
273 |
- |
295 |
- |
|||||||||||
|
Change in fair value of contingent consideration |
913 |
- |
(1,187) |
- |
|||||||||||
|
Changes in assets and liabilities: |
|||||||||||||||
|
(Increase) decrease in accounts receivable |
(1,873) |
2,602 |
9,170 |
13,581 |
|||||||||||
|
(Increase) decrease in prepaid expenses and other assets |
(2,566) |
(556) |
(6,547) |
(1,447) |
|||||||||||
|
Increase (decrease) in accounts payable, accrued expenses and other liabilities |
5,197 |
(3,029) |
(780) |
(8,992) |
|||||||||||
|
Cash Flows From Operating Activities |
$ |
13,288 |
$ |
10,390 |
$ |
16,916 |
$ |
23,306 |
|||||||
|
(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. |
SOURCE Entravision Communications Corporation
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