8-K
Entravision Communications Corp (EVC)
UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON, 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): May 05, 2022 |
|---|
ENTRAVISION COMMUNICATIONS CORPORATION
(Exact name of Registrant as Specified in Its Charter)
| Delaware | 001-15997 | 95-4783236 |
|---|---|---|
| (State or Other Jurisdiction<br>of Incorporation) | (Commission File Number) | (IRS Employer<br>Identification No.) |
| 2425 Olympic Boulevard<br><br>Suite 6000 West | ||
| Santa Monica, California | 90404 | |
| (Address of Principal Executive Offices) | (Zip Code) | |
| Registrant’s Telephone Number, Including Area Code: 310 447-3870 | ||
| --- |
(Former Name or Former Address, if Changed Since Last Report)
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:
☐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))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br>Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Class A Common Stock | EVC | The New York Stock Exchange |
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 May 5, 2022, Entravision Communications Corporation (the “Company”) issued a press release announcing its results of operations for the three-month period ended March 31, 2022. 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 May 5, 2022 announcing its results of operations for the three-month period ended March 31, 2022. |
|---|---|
| 104 | Cover Page Interactive Data 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: May 5, 2022 | By: | /s/ Walter F. Ulloa |
| Walter F. Ulloa | ||
| Chairman and Chief Executive Officer |
3 -
EX-99.1
Entravision Communications
Page 1 of 10
Exhibit 99.1
ENTRAVISION COMMUNICATIONS CORPORATION REPORTS
FIRST QUARTER 2022 RESULTS
SANTA MONICA, CALIFORNIA, May 5, 2022 – Entravision Communications Corporation (NYSE: EVC), a leading global advertising solutions, media and technology company, today announced financial results for the three-month period ended March 31, 2022.
First Quarter 2022 Highlights
• All-time first quarter record revenue, EBITDA and free cash flow
• Net revenue up 32% over the prior-year quarter
• Net income attributable to common stockholders down 65% over the prior-year quarter
• Consolidated adjusted EBITDA up 28% over the prior-year quarter
• Operating cash flow up 127% over the prior-year quarter
• Free cash flow up 10% over the prior-year quarter
• Quarterly cash dividend of $0.025 per share
• Repurchased $7.1 million in shares under the Company's $20 million share repurchase program
• Post quarter entered into a definitive agreement to make an investment in Jack of Digital
“Entravision begins 2022 on very solid footing, with net revenue for the first quarter totaling $197.2 million, up 32% year-over year. Adjusted EBITDA also improved to total $18.1 million, an increase of 28% over the prior-year period,” said Walter Ulloa, Chairman and Chief Executive Officer. “Importantly, even as our top line continues to grow, we have maintained a lean, efficient cost structure, helping to drive our cash flow as well as our ability to provide consistent returns to our shareholders."
Mr. Ulloa continued, “Our strength during the first quarter was largely driven by revenue growth of 51% in our digital segment, which comprised 78% of consolidated revenue. Our broadcast businesses, and, in particular, audio, helped drive our strong margins and cash flow. Simultaneously, our strategic expansion of our commercial partnerships with some of the world’s leading technology platforms has positioned us at the forefront of digital innovation across emerging economies, including Latin America, Southeast Asia, Africa, and Pakistan when we complete our investment in Jack of Digital. We are excited about the enormous opportunities that lie in front of us and look forward to sharing our progress throughout the year."
Quarterly Cash Dividend
The Company announced today that its 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 June 30, 2022 to shareholders of record as of the close of business on June 16, 2022, and the common stock will trade ex-dividend on June 15, 2022. 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.
Share Repurchase Program
On March 1, 2022, the Board of Directors approved the repurchase of up to $20 million of the Company’s common stock. Under this share repurchase program, the Company is authorized to purchase shares from time to time through open market purchases or negotiated purchases, subject to market conditions and other factors. On the same date, the Board terminated the Company’s previous share repurchase program of the Company’s common stock. During the first quarter the Company repurchased $7.1 million of its Class A common stock.
Entravision Communications
Page 2 of 10
Investment in Jack of Digital
As previously announced, the Company has entered into a definitive agreement to acquire a strategic stake in Jack of Digital, a digital marketing services company that serves as the exclusive advertising sales partner of TikTok in Pakistan. Subject to regulatory approvals and other pre-closing conditions, the Company anticipates that the investment will be completed during the second quarter of 2022. With this investment, the Company enhances its presence in South Asia.
Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures as defined by SEC Regulation G. The GAAP financial measure most directly comparable to each of these non-GAAP financial measures, and a table reconciling each of these non-GAAP financial measures to its most directly comparable GAAP financial measure is included beginning on page 9.
Unaudited Financial Highlights (In thousands, except share and per share data)
| Three-Month Period | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Ended March 31, | |||||||||
| 2022 | 2021 | % Change | |||||||
| Net revenue | $ | 197,172 | $ | 148,880 | 32 | % | |||
| Cost of revenue - digital (1) | 129,891 | 84,756 | 53 | % | |||||
| Operating expenses (2) | 43,862 | 40,414 | 9 | % | |||||
| Corporate expenses (3) | 8,724 | 7,158 | 22 | % | |||||
| Foreign currency (gain) loss | (847 | ) | 586 | * | |||||
| Consolidated adjusted EBITDA (4) | 18,113 | 14,195 | 28 | % | |||||
| Free cash flow (5) | $ | 14,327 | $ | 13,029 | 10 | % | |||
| Net income (loss) | $ | 1,887 | $ | 7,002 | (73 | )% | |||
| Net (income) loss attributable to redeemable noncontrolling interest | $ | - | $ | (1,573 | ) | * | |||
| Net income (loss) attributable to common stockholders | $ | 1,887 | $ | 5,429 | (65 | )% | |||
| Net income (loss) per share attributable to common stockholders, basic and diluted | $ | 0.02 | $ | 0.06 | (67 | )% | |||
| Weighted average common shares outstanding, basic | 86,522,378 | 85,041,628 | |||||||
| Weighted average common shares outstanding, diluted | 88,630,216 | 86,986,581 |
(1) 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 $1.0 million and $0.3 million of non-cash stock-based compensation for the three-month periods ended March 31, 2022 and 2021, respectively.
(3) Corporate expenses include $1.6 million and $0.8 million of non-cash stock-based compensation for the three-month periods ended March 31, 2022 and 2021, 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.
Entravision Communications
Page 3 of 10
Unaudited Financial Results (In thousands)
| Three-Month Period | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Ended March 31, | |||||||||
| 2022 | 2021 | % Change | |||||||
| Net revenue | $ | 197,172 | $ | 148,880 | 32 | % | |||
| Cost of revenue - digital (1) | 129,891 | 84,756 | 53 | % | |||||
| Operating expenses (1) | 43,862 | 40,414 | 9 | % | |||||
| Corporate expenses (1) | 8,724 | 7,158 | 22 | % | |||||
| Depreciation and amortization | 6,395 | 5,184 | 23 | % | |||||
| Change in fair value of contingent consideration | 5,100 | - | * | ||||||
| Impairment charge | - | 1,326 | (100 | )% | |||||
| Foreign currency (gain) loss | (847 | ) | 586 | * | |||||
| Other operating (gain) loss | (119 | ) | (1,913 | ) | (94 | )% | |||
| Operating income (loss) | 4,166 | 11,369 | (63 | )% | |||||
| Interest expense, net | (1,430 | ) | (1,577 | ) | (9 | )% | |||
| Dividend income | 3 | 2 | 50 | % | |||||
| Income (loss) before income taxes | 2,739 | 9,794 | (72 | )% | |||||
| Income tax benefit (expense) | (852 | ) | (2,792 | ) | (69 | )% | |||
| Net income (loss) | 1,887 | 7,002 | (73 | )% | |||||
| Net (income) loss attributable to redeemable noncontrolling interest | - | (1,573 | ) | * | |||||
| Net income (loss) attributable to common stockholders | $ | 1,887 | $ | 5,429 | (65 | )% |
(1) Cost of revenue, operating expenses and corporate expenses are defined on page 2.
Net revenue in the first quarter of 2022 totaled $197.2 million, up 32% from $148.9 million in the prior-year period. Of the overall increase, approximately $52.2 million was attributable to our digital segment and was primarily due to advertising revenue growth from our digital commercial partnerships business and our acquisitions of MediaDonuts and 365 Digital during the third and fourth quarters of 2021, respectively, both of which did not contribute to net revenue in the comparable period ended March 31, 2021. In addition, of the overall increase, approximately $1.3 million was attributable to our audio segment primarily due to increases in local advertising revenue and political advertising revenue. The overall increase was partially offset by a decrease of approximately $5.2 million attributable to our television segment, primarily due to decreases in local and national advertising revenue, which was mainly attributed to the expiration of our Univision and UniMás network affiliation agreements in Orlando, Tampa and Washington, D.C. on December 31, 2021. Additionally, the decrease in our television segment was attributed to a decrease in revenue from spectrum usage rights, and a decrease in retransmission consent revenue, partially offset by an increase in political advertising revenue.
Cost of revenue in the first quarter of 2022 totaled $129.9 million, up 53% from $84.8 million in the prior-year period. The increase was primarily due to increased costs of revenue related to advertising revenue growth from our digital commercial partnerships business, and our acquisitions of MediaDonuts and 365 Digital during the third and fourth quarters of 2021, respectively, both of which did not incur cost of revenue for us in the comparable period ended March 31, 2021.
Operating expenses in the first quarter of 2022 totaled $43.9 million, up 9% from $40.4 million in the prior-year period. Of the overall increase, approximately $4.4 million was attributable to our digital segment and was primarily due to an increase in expenses associated with the increase in digital advertising revenue, an increase in salary expense and our acquisitions of MediaDonuts and 365 Digital during the third and fourth quarters of 2021, respectively, both of which did not incur operating expenses for us in the comparable period ended March 31, 2021. The overall increase was partially offset by a decrease of approximately $0.7 million that was attributable to our television segment primarily due to a decrease in expenses associated with the decrease in local and national advertising revenue, and a decrease of approximately $0.3 million that was attributable to our audio segment primarily due to a decrease in rating services expense.
Corporate expenses in the first quarter of 2022 totaled $8.7 million, up 22% from $7.2 million in the prior-year period. The increase was primarily due to increases in non-cash stock-based compensation, salaries, and audit fees.
Balance Sheet and Related Metrics
Cash and marketable securities as of March 31, 2022 totaled approximately $211.6 million. Total debt was $211.8 million. Net of $75 million of cash and marketable securities, total leverage as defined in the Company’s credit agreement was 1.5 times as of March 31, 2022. Net of total cash and marketable securities, total leverage was 0.0 times.
Entravision Communications
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Unaudited Segment Results (In thousands)
| Three-Month Period | |||||||
|---|---|---|---|---|---|---|---|
| Ended March 31, | |||||||
| 2022 | 2021 | % Change | |||||
| Net Revenue | |||||||
| Digital | $ | 153,711 | $ | 101,482 | 51 | % | |
| Television | 30,867 | 36,091 | (14 | )% | |||
| Audio | 12,594 | 11,307 | 11 | % | |||
| Total | $ | 197,172 | $ | 148,880 | 32 | % | |
| Cost of Revenue - digital (1) | |||||||
| Digital | $ | 129,891 | $ | 84,756 | 53 | % | |
| Operating Expenses (1) | |||||||
| Digital | 15,235 | 10,850 | 40 | % | |||
| Television | 19,240 | 19,884 | (3 | )% | |||
| Audio | 9,387 | 9,680 | (3 | )% | |||
| Total | $ | 43,862 | $ | 40,414 | 9 | % | |
| Corporate Expenses (1) | $ | 8,724 | $ | 7,158 | 22 | % | |
| Consolidated adjusted EBITDA (1) | $ | 18,113 | $ | 14,195 | 28 | % |
(1) Cost of revenue, operating expenses, corporate expenses, and consolidated adjusted EBITDA are defined on page 2.
Notice of Conference Call
Entravision Communications Corporation will hold a conference call to discuss its first quarter 2022 results on Thursday, May 5, 2022 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 13728063. 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 leading global advertising, media and ad-tech solutions company connecting brands to consumers by representing top platforms and publishers. Our dynamic portfolio includes digital, television and audio offerings. Digital, our largest revenue segment, is comprised of four business units: our digital sales representation business; Smadex, our programmatic ad purchasing platform; our branding and mobile performance solutions business; and our digital audio business. Through our digital sales representation business, we connect global media companies such as Meta, Twitter, TikTok and Spotify with advertisers in primarily emerging growth markets worldwide. Smadex is our mobile-first demand side platform, enabling advertisers to execute performance campaigns using machine learning. We also offer a branding and mobile performance solutions business, which provides managed services to advertisers looking to connect with global consumers, primarily on mobile devices, and our digital audio business provides digital audio advertising solutions for advertisers in the Americas. In addition to digital, Entravision has 49 television stations and is the largest affiliate group of the Univision and UniMás television networks. Entravision also manages 46 primarily Spanish-language radio stations that feature nationally recognized, Emmy award-winning talent. Shares of Entravision Class A Common Stock trade on the NYSE under ticker: EVC. Learn more about our 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 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.
Entravision Communications
Page 5 of 10
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@addo.com |
#
(Financial Table Follows)
Entravision Communications
Page 6 of 10
Entravision Communications Corporation
Consolidated Statements of Operations
(In thousands, except share and per share data)
(Unaudited)
| Three-Month Period | ||||||
|---|---|---|---|---|---|---|
| Ended March 31, | ||||||
| 2022 | 2021 | |||||
| Net revenue | $ | 197,172 | $ | 148,880 | ||
| Expenses: | ||||||
| Cost of revenue - digital | 129,891 | 84,756 | ||||
| Direct operating expenses | 27,823 | 26,561 | ||||
| Selling, general and administrative expenses | 16,039 | 13,853 | ||||
| Corporate expenses | 8,724 | 7,158 | ||||
| Depreciation and amortization | 6,395 | 5,184 | ||||
| Change in fair value of contingent consideration | 5,100 | - | ||||
| Impairment charge | - | 1,326 | ||||
| Foreign currency (gain) loss | (847 | ) | 586 | |||
| Other operating (gain) loss | (119 | ) | (1,913 | ) | ||
| 193,006 | 137,511 | |||||
| Operating income (loss) | 4,166 | 11,369 | ||||
| Interest expense | (1,836 | ) | (1,717 | ) | ||
| Interest income | 406 | 140 | ||||
| Dividend income | 3 | 2 | ||||
| Income (loss) before income taxes | 2,739 | 9,794 | ||||
| Income tax benefit (expense) | (852 | ) | (2,792 | ) | ||
| Net income (loss) | 1,887 | 7,002 | ||||
| Net (income) loss attributable to redeemable noncontrolling interest | - | (1,573 | ) | |||
| Net income (loss) attributable to common stockholders | $ | 1,887 | $ | 5,429 | ||
| Basic and diluted earnings per share: | ||||||
| Net income (loss) per share attributable to common stockholders, basic and diluted | $ | 0.02 | $ | 0.06 | ||
| Cash dividends declared per common share, basic and diluted | $ | 0.03 | $ | 0.03 | ||
| Weighted average common shares outstanding, basic | 86,522,378 | 85,041,628 | ||||
| Weighted average common shares outstanding, diluted | 88,630,216 | 86,986,581 |
Entravision Communications
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Entravision Communications Corporation
Consolidated Balance Sheets
(In thousands; unaudited)
| March 31, | December 31, | |||||
|---|---|---|---|---|---|---|
| 2022 | 2021 | |||||
| ASSETS | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 126,574 | $ | 185,094 | ||
| Marketable securities | 85,010 | - | ||||
| Restricted cash | 749 | 749 | ||||
| Trade receivables, net of allowance for doubtful accounts | 173,419 | 201,747 | ||||
| Assets held for sale | 1,963 | 1,963 | ||||
| Prepaid expenses and other current assets | 36,341 | 18,925 | ||||
| Total current assets | 424,056 | 408,478 | ||||
| Property and equipment, net | 60,174 | 62,498 | ||||
| Intangible assets subject to amortization, net | 61,476 | 64,034 | ||||
| Intangible assets not subject to amortization | 209,053 | 209,053 | ||||
| Goodwill | 71,708 | 71,708 | ||||
| Deferred income taxes | 1,462 | 1,462 | ||||
| Operating leases right of use asset | 25,596 | 25,582 | ||||
| Other assets | 8,084 | 8,527 | ||||
| Total assets | $ | 861,609 | $ | 851,342 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Current liabilities | ||||||
| Current maturities of long-term debt | $ | 4,947 | $ | 4,903 | ||
| Accounts payable and accrued expenses | 222,610 | 212,655 | ||||
| Operating lease liabilities | 6,808 | 7,304 | ||||
| Total current liabilities | 234,365 | 224,862 | ||||
| Long-term debt, less current maturities, net of unamortized debt issuance costs | 206,816 | 207,416 | ||||
| Long-term operating lease liabilities | 21,505 | 20,988 | ||||
| Other long-term liabilities | 79,076 | 72,930 | ||||
| Deferred income taxes | 68,092 | 68,220 | ||||
| Total liabilities | 609,854 | 594,416 | ||||
| Stockholders' equity | ||||||
| Class A common stock | 6 | 6 | ||||
| Class B common stock | 2 | 2 | ||||
| Class U common stock | 1 | 1 | ||||
| Additional paid-in capital | 773,613 | 780,388 | ||||
| Accumulated deficit | (520,607 | ) | (522,494 | ) | ||
| Accumulated other comprehensive income (loss) | (1,260 | ) | (977 | ) | ||
| Total stockholders' equity | 251,755 | 256,926 | ||||
| Total liabilities and stockholders' equity | $ | 861,609 | $ | 851,342 |
Entravision Communications
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Entravision Communications Corporation
Consolidated Statements of Cash Flows
(In thousands; unaudited)
| Three-Month Period | ||||||
|---|---|---|---|---|---|---|
| Ended March 31, | ||||||
| 2022 | 2021 | |||||
| Cash flows from operating activities: | ||||||
| Net income (loss) | $ | 1,887 | $ | 7,002 | ||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||
| Depreciation and amortization | 6,395 | 5,184 | ||||
| Impairment charge | — | 1,326 | ||||
| Deferred income taxes | (359 | ) | 2,987 | |||
| Non-cash interest | 280 | 139 | ||||
| Amortization of syndication contracts | 116 | 119 | ||||
| Payments on syndication contracts | (118 | ) | (124 | ) | ||
| Non-cash stock-based compensation | 2,573 | 1,071 | ||||
| (Gain) loss on disposal of property and equipment | (151 | ) | — | |||
| Change in fair value of contingent consideration | 5,100 | — | ||||
| Changes in assets and liabilities: | ||||||
| (Increase) decrease in accounts receivable | 29,380 | 9,927 | ||||
| (Increase) decrease in prepaid expenses and other assets | (2,405 | ) | 1,177 | |||
| Increase (decrease) in accounts payable, accrued expenses and other liabilities | 10,521 | (5,356 | ) | |||
| Net cash provided by operating activities | 53,219 | 23,452 | ||||
| Cash flows from investing activities: | ||||||
| Proceeds from sale of property and equipment and intangibles | 164 | — | ||||
| Purchases of property and equipment | (1,547 | ) | (1,838 | ) | ||
| Purchases of marketable securities | (85,517 | ) | — | |||
| Proceeds from marketable securities | — | 12,120 | ||||
| Net cash provided by investing activities | (86,900 | ) | 10,282 | |||
| Cash flows from financing activities: | ||||||
| Proceeds from stock option exercises | 218 | — | ||||
| Tax payments related to shares withheld for share-based compensation plans | (257 | ) | (9 | ) | ||
| Payments on long-term debt | (750 | ) | (750 | ) | ||
| Dividends paid | (2,167 | ) | (2,126 | ) | ||
| Repurchase of Class A common stock | (7,142 | ) | — | |||
| Payment of contingent consideration | (14,730 | ) | — | |||
| Principal payments under finance lease obligation | (10 | ) | — | |||
| Net cash used in financing activities | (24,838 | ) | (2,885 | ) | ||
| Effect of exchange rates on cash, cash equivalents and restricted cash | (1 | ) | (24 | ) | ||
| Net increase (decrease) in cash, cash equivalents and restricted cash | (58,520 | ) | 30,825 | |||
| Cash, cash equivalents and restricted cash: | ||||||
| Beginning | 185,843 | 119,911 | ||||
| Ending | $ | 127,323 | $ | 150,736 |
Entravision Communications
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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 | ||||||
|---|---|---|---|---|---|---|
| Ended March 31, | ||||||
| 2022 | 2021 | |||||
| Consolidated adjusted EBITDA (1) | $ | 18,113 | $ | 14,195 | ||
| EBITDA attributable to redeemable noncontrolling interest | - | 2,837 | ||||
| Interest expense | (1,836 | ) | (1,717 | ) | ||
| Interest income | 406 | 140 | ||||
| Dividend income | 3 | 2 | ||||
| Income tax expense | (852 | ) | (2,792 | ) | ||
| Amortization of syndication contracts | (116 | ) | (119 | ) | ||
| Payments on syndication contracts | 118 | 124 | ||||
| Non-cash stock-based compensation included in direct operating expenses | (958 | ) | (316 | ) | ||
| Non-cash stock-based compensation included in corporate expenses | (1,615 | ) | (755 | ) | ||
| Depreciation and amortization | (6,395 | ) | (5,184 | ) | ||
| Change in fair value of contingent consideration | (5,100 | ) | - | |||
| Impairment charge | - | (1,326 | ) | |||
| Other operating gain (loss) | 119 | 1,913 | ||||
| Net (income) loss attributable to redeemable noncontrolling interest | - | (1,573 | ) | |||
| Net income (loss) attributable to common stockholders | 1,887 | 5,429 | ||||
| Depreciation and amortization | 6,395 | 5,184 | ||||
| Impairment charge | - | 1,326 | ||||
| Deferred income taxes | (359 | ) | 2,987 | |||
| Non-cash interest | 280 | 139 | ||||
| Amortization of syndication contracts | 116 | 119 | ||||
| Payments on syndication contracts | (118 | ) | (124 | ) | ||
| Non-cash stock-based compensation | 2,573 | 1,071 | ||||
| (Gain) loss on disposal of property and equipment | (151 | ) | - | |||
| Change in fair value of contingent consideration | 5,100 | - | ||||
| Net income (loss) attributable to redeemable noncontrolling interest | - | 1,573 | ||||
| Changes in assets and liabilities: | ||||||
| (Increase) decrease in accounts receivable | 29,380 | 9,927 | ||||
| (Increase) decrease in prepaid expenses and other assets | (2,405 | ) | 1,177 | |||
| Increase (decrease) in accounts payable, accrued expenses and other liabilities | 10,521 | (5,356 | ) | |||
| Cash flows from operating activities | 53,219 | 23,452 |
(1) Consolidated adjusted EBITDA is defined on page 2.
Entravision Communications
Page 10 of 10
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 | ||||||
|---|---|---|---|---|---|---|
| Ended March 31, | ||||||
| 2022 | 2021 | |||||
| Consolidated adjusted EBITDA (1) | $ | 18,113 | $ | 14,195 | ||
| Net interest expense (1) | (1,150 | ) | (1,438 | ) | ||
| Dividend income | 3 | 2 | ||||
| Cash paid for income taxes | (1,211 | ) | 195 | |||
| Capital expenditures (2) | (1,547 | ) | (1,838 | ) | ||
| Other operating gain (loss) | 119 | 1,913 | ||||
| Free cash flow (1) | 14,327 | 13,029 | ||||
| Capital expenditures (2) | 1,547 | 1,838 | ||||
| EBITDA attributable to redeemable noncontrolling interest | - | 2,837 | ||||
| (Gain) loss on disposal of property and equipment | (151 | ) | - | |||
| Changes in assets and liabilities: | ||||||
| (Increase) decrease in accounts receivable | 29,380 | 9,927 | ||||
| (Increase) decrease in prepaid expenses and other assets | (2,405 | ) | 1,177 | |||
| Increase (decrease) in accounts payable, accrued expenses and other liabilities | 10,521 | (5,356 | ) | |||
| Cash Flows From Operating Activities | $ | 53,219 | $ | 23,452 |
(1) Consolidated adjusted EBITDA, net interest expense, and free cash flow are defined on page 2.
(2) Capital expenditures are not part of the consolidated statement of operations.