SANTA MONICA, Calif.,
Nov. 3, 2016 /PRNewswire/
-- Entravision Communications Corporation (NYSE: EVC) today
reported financial results for the three- and nine-month periods
ended September 30, 2016.
Historical results, which are attached, are in thousands of U.S.
dollars (except share and per share data). This press release
contains certain non-GAAP financial measures as defined by SEC
Regulation G. The GAAP financial measure most directly comparable
to each of these non-GAAP financial measures, and a table
reconciling each of these non-GAAP financial measures to its most
directly comparable GAAP financial measure is included beginning on
page 10. Unaudited financial highlights are as follows:
|
Three-Month
Period
|
|
|
Nine-Month
Period
|
|
|
Ended September
30,
|
|
|
Ended September
30,
|
|
|
2016
|
|
|
2015
|
|
|
%
Change
|
|
|
2016
|
|
|
2015
|
|
|
%
Change
|
|
Net
revenue
|
$
|
65,281
|
|
|
$
|
69,261
|
|
|
|
(6)
|
%
|
|
$
|
188,223
|
|
|
$
|
188,702
|
|
|
|
(0)
|
%
|
Cost of revenue -
digital media (1)
|
|
2,281
|
|
|
|
1,881
|
|
|
|
21
|
%
|
|
|
6,493
|
|
|
|
4,633
|
|
|
|
40
|
%
|
Operating expenses
(2)
|
|
40,187
|
|
|
|
38,804
|
|
|
|
4
|
%
|
|
|
119,135
|
|
|
|
113,518
|
|
|
|
5
|
%
|
Corporate expenses
(3)
|
|
5,728
|
|
|
|
5,535
|
|
|
|
3
|
%
|
|
|
16,625
|
|
|
|
15,578
|
|
|
|
7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated adjusted
EBITDA (4)
|
|
17,841
|
|
|
|
23,878
|
|
|
|
(25)
|
%
|
|
|
48,623
|
|
|
|
57,542
|
|
|
|
(15)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
(5)
|
$
|
11,928
|
|
|
$
|
17,793
|
|
|
|
(33)
|
%
|
|
$
|
30,285
|
|
|
$
|
36,150
|
|
|
|
(16)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
5,415
|
|
|
$
|
9,293
|
|
|
|
(42)
|
%
|
|
$
|
13,402
|
|
|
$
|
19,818
|
|
|
|
(32)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share,
basic
|
$
|
0.06
|
|
|
$
|
0.11
|
|
|
|
(45)
|
%
|
|
$
|
0.15
|
|
|
$
|
0.23
|
|
|
|
(35)
|
%
|
Net income per share,
diluted
|
$
|
0.06
|
|
|
$
|
0.10
|
|
|
|
(40)
|
%
|
|
$
|
0.15
|
|
|
$
|
0.22
|
|
|
|
(32)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding, basic
|
|
89,590,135
|
|
|
|
88,090,143
|
|
|
|
|
|
|
|
89,208,732
|
|
|
|
87,820,029
|
|
|
|
|
|
Weighted average
common shares outstanding, diluted
|
|
91,489,975
|
|
|
|
90,423,333
|
|
|
|
|
|
|
|
91,188,958
|
|
|
|
90,202,389
|
|
|
|
|
|
|
(1)
|
Cost of revenue
consists primarily of the costs of online media acquired from
third-party publishers. Media cost is classified as cost of revenue
in the period in which the corresponding revenue is
recognized.
|
|
|
|
|
(2)
|
Operating expenses
include direct operating, selling, general and administrative
expenses. Included in operating expenses are $0.1 million and $0.3
million of non-cash stock-based compensation for the three-month
periods ended September 30, 2016 and 2015, respectively and $0.7
million and $1.0 million of non-cash stock-based compensation for
the nine-month periods ended September 30, 2016 and 2015,
respectively. Operating expenses do not include corporate expenses,
depreciation and amortization, impairment charge, gain (loss) on
sale of assets, gain (loss) on debt extinguishment and other income
(loss).
|
|
|
(3)
|
Corporate expenses
include $0.7 million and $0.6 million of non-cash stock-based
compensation for the three-month periods ended September 30, 2016
and 2015, respectively and $1.9 million and $1.7 million of
non-cash stock-based compensation for the nine-month periods ended
September 30, 2016 and 2015, respectively.
|
|
|
(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), gain (loss) on
debt extinguishment, income tax (expense) benefit, equity in net
income (loss) of nonconsolidated affiliate, non-cash losses and
syndication programming amortization less syndication programming
payments. We use the term consolidated adjusted EBITDA because that
measure is defined in our 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 and syndication
programming amortization and does include syndication programming
payments. While many in the financial community and we consider
consolidated adjusted EBITDA to be important, it should be
considered in addition to, but not as a substitute for or superior
to, other measures of liquidity and financial performance prepared
in accordance with accounting principles generally accepted in the
United States of America, such as cash flows from operating
activities, operating income and net income. As consolidated
adjusted EBITDA excludes non-cash gain (loss) on sale of assets,
non-cash depreciation and amortization, non-cash impairment charge,
non-cash stock-based compensation expense, 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 and syndication programming amortization
and includes syndication programming payments, consolidated
adjusted EBITDA has certain limitations because it excludes and
includes several important non-cash financial line items.
Therefore, we consider both non-GAAP and GAAP measures when
evaluating our business. Consolidated adjusted EBITDA is also used
to make executive compensation decisions.
|
|
|
(5)
|
Free cash flow is
defined as consolidated adjusted EBITDA less cash paid for income
taxes, net interest expense, and capital expenditures. Net interest
expense is defined as interest expense, less non-cash interest
expense relating to amortization of debt finance costs, and less
interest income.
|
Commenting on the Company's earnings results, Walter F. Ulloa, Chairman and Chief Executive
Officer, said, "During the third quarter, we faced challenging
comparisons to last year's third quarter. We continued to grow
our core television advertising revenue (excluding retransmission
consent revenue and political advertising revenue), but these
increases were offset by decreases primarily attributable to the
loss of non-advertising revenue from a telecommunications
operator. Additionally, we continued to grow our digital
segment revenue and build our digital footprint through Pulpo
Media, which provides us with an integrated platform to connect
advertisers and marketers with Latino audiences. Looking ahead, we
remain well positioned to build on our success in further
attracting Latino audiences, expanding our advertiser base and
monetizing our reach to the benefit of our shareholders."
Quarterly Cash Dividend
The Company announced today that its Board of Directors has
approved a quarterly cash dividend to shareholders of $0.03125 per share of the Company's Class A,
Class B and Class U common stock, in an aggregate amount of
approximately $2.8 million. The
quarterly dividend will be payable on December 30, 2016 to shareholders of record as of
the close of business on December 14,
2016, and the common stock will trade ex-dividend on
December 12, 2016. As previously
announced, the Company currently anticipates that future cash
dividends will be paid on a quarterly basis; however, any decision
to pay future cash dividends will be subject to approval by the
Board.
Financial Results
Three-Month Period
Ended September 30, 2016 Compared to Three-Month Period
Ended
|
September 30,
2015
|
(Unaudited)
|
|
|
Three-Month
Period
|
|
|
Ended September
30,
|
|
|
2016
|
|
|
2015
|
|
|
%
Change
|
|
Net
revenue
|
$
|
65,281
|
|
|
$
|
69,261
|
|
|
|
(6)
|
%
|
Cost of revenue -
digital media (1)
|
|
2,281
|
|
|
|
1,881
|
|
|
|
21
|
%
|
Operating expenses
(1)
|
|
40,187
|
|
|
|
38,804
|
|
|
|
4
|
%
|
Corporate expenses
(1)
|
|
5,728
|
|
|
|
5,535
|
|
|
|
3
|
%
|
Depreciation and
amortization
|
|
3,812
|
|
|
|
4,030
|
|
|
|
(5)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
13,273
|
|
|
|
19,011
|
|
|
|
(30)
|
%
|
Interest expense,
net
|
|
(3,823)
|
|
|
|
(3,274)
|
|
|
|
17
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
9,450
|
|
|
|
15,737
|
|
|
|
(40)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
(4,035)
|
|
|
|
(6,444)
|
|
|
|
(37)
|
%
|
Net income
|
$
|
5,415
|
|
|
$
|
9,293
|
|
|
|
(42)
|
%
|
|
(1)
|
Cost of revenue,
operating expenses and corporate expenses are defined on page
1.
|
Net revenue decreased to $65.3
million for the three-month period ended September 30, 2016 from $69.3 million for the three-month period ended
September 30, 2015, a decrease of
$4.0 million. Of the overall
decrease, approximately $3.0 million
was attributed to our television segment and was primarily
attributable to approximately $5.5
million of revenue associated with television station
channel modifications made by the Company in order to accommodate
the operations of a telecommunications operator included in the
2015 period, and which revenue did not recur in 2016, and a
decrease in local advertising revenue. This decrease in the
television segment was partially offset by an increase in national
advertising revenue, an increase in political advertising revenue,
which was not material in 2015, and an increase in retransmission
consent revenue. Additionally we had a decrease of $1.7 million in the radio segment primarily
attributable to a decrease in local advertising revenue, partially
offset by an increase in political advertising revenue, which was
not material in 2015. The overall decrease in net revenue was
partially offset by an increase of $0.7
million that was attributed to our digital segment and was
primarily attributable to increases in national and local
revenue.
Cost of revenue increased to $2.3
million for the three-month period ended September 30, 2016 from $1.9 million for the three-month period ended
September 30, 2015, an increase of
$0.4 million, due to increased online
media costs associated with the increase in net revenue of our
digital segment.
Operating expenses increased to $40.2
million for the three-month period ended September 30, 2016 from $38.8 million for the three-month period ended
September 30, 2015, an increase of
$1.4 million. The increase was
primarily attributable to expenses associated with the increase in
advertising revenue and increases in salary expense and insurance
expense.
Corporate expenses increased to $5.7
million for the three-month period ended September 30, 2016 from $5.5 million for the three-month period ended
September 30, 2015, an increase of
$0.2 million. The increase was
primarily attributable to increases in salary expense and non-cash
stock-based compensation expense.
Nine-Month Period
Ended September 30, 2016 Compared to Nine-Month Period
Ended
|
September 30,
2015
|
(Unaudited)
|
|
|
Nine-Month
Period
|
|
|
Ended September
30,
|
|
|
2016
|
|
|
2015
|
|
|
%
Change
|
|
Net
revenue
|
$
|
188,223
|
|
|
$
|
188,702
|
|
|
|
(0)
|
%
|
Cost of revenue -
digital media (1)
|
|
6,493
|
|
|
|
4,633
|
|
|
|
40
|
%
|
Operating expenses
(1)
|
|
119,135
|
|
|
|
113,518
|
|
|
|
5
|
%
|
Corporate expenses
(1)
|
|
16,625
|
|
|
|
15,578
|
|
|
|
7
|
%
|
Depreciation and
amortization
|
|
11,724
|
|
|
|
11,950
|
|
|
|
(2)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
34,246
|
|
|
|
43,023
|
|
|
|
(20)
|
%
|
Interest expense,
net
|
|
(11,423)
|
|
|
|
(9,738)
|
|
|
|
17
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
22,823
|
|
|
|
33,285
|
|
|
|
(31)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
(9,421)
|
|
|
|
(13,467)
|
|
|
|
(30)
|
%
|
Net income
|
$
|
13,402
|
|
|
$
|
19,818
|
|
|
|
(32)
|
%
|
Net revenue decreased to $188.2
million for the nine-month period ended September 30, 2016 from $188.7 million for the nine-month period ended
September 30, 2015, a decrease of
$0.5 million. Of the overall
decrease, approximately $3.2 million
was attributed to our television segment and was primarily
attributable to approximately $10.5
million of revenue associated with television station
channel modifications made by the Company in order to accommodate
the operations of a telecommunications operator included in the
2015 period, and which revenue did not recur in 2016, and a
decrease in local advertising revenue. This decrease in the
television segment was partially offset by an increase in political
advertising revenue, which was not material in 2015, an increase in
national advertising revenue, and an increase in retransmission
consent revenue. Additionally approximately $1.2 million of the overall decrease was
attributed to our radio segment and was primarily attributable to a
decrease in local advertising revenue, partially offset by an
increase in political advertising revenue, which was not material
in 2015. The overall decrease in net revenue was partially offset
by an increase of approximately $3.9
million in our digital segment and was primarily
attributable to increases in national and local revenue.
Cost of revenue increased to $6.5
million for the nine-month period ended September 30, 2016 from $4.6 million for the nine-month period ended
September 30, 2015, an increase of
$1.9 million, due to increased online
media costs associated with the increase in net revenue of our
digital segment.
Operating expenses increased to $119.1
million for the nine-month period ended September 30, 2016 from $113.5 million for the nine-month period ended
September 30, 2015, an increase of
$5.6 million. The increase was
primarily attributable to expenses associated with the increase in
advertising revenue and increases in salary expense and insurance
expense.
Corporate expenses increased to $16.6
million for the nine-month period ended September 30, 2016 from $15.6 million for the nine-month period ended
September 30, 2015, an increase of
$1.0 million. The increase was
primarily attributable to increases in salary expense and non-cash
stock-based compensation expense.
Segment
Results
|
|
The following
represents selected unaudited segment information
|
|
|
Three-Month
Period
|
|
|
Nine-Month
Period
|
|
|
Ended September
30,
|
|
|
Ended September
30,
|
|
|
|
2016
|
|
|
|
2015
|
|
|
%
Change
|
|
|
|
2016
|
|
|
|
2015
|
|
|
%
Change
|
|
Net
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Television
|
$
|
40,363
|
|
|
$
|
43,393
|
|
|
|
(7)
|
%
|
|
$
|
116,143
|
|
|
$
|
119,292
|
|
|
|
(3)
|
%
|
Radio
|
|
19,169
|
|
|
|
20,855
|
|
|
|
(8)
|
%
|
|
|
55,605
|
|
|
|
56,785
|
|
|
|
(2)
|
%
|
Digital
|
|
5,749
|
|
|
|
5,013
|
|
|
|
15
|
%
|
|
|
16,475
|
|
|
|
12,625
|
|
|
|
30
|
%
|
Total
|
$
|
65,281
|
|
|
$
|
69,261
|
|
|
|
(6)
|
%
|
|
$
|
188,223
|
|
|
$
|
188,702
|
|
|
|
(0)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Revenue -
digital media (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Digital
|
$
|
2,281
|
|
|
$
|
1,881
|
|
|
|
21
|
%
|
|
$
|
6,493
|
|
|
$
|
4,633
|
|
|
|
40
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Television
|
|
21,151
|
|
|
|
20,445
|
|
|
|
3
|
%
|
|
|
62,299
|
|
|
|
59,928
|
|
|
|
4
|
%
|
Radio
|
|
16,422
|
|
|
|
15,865
|
|
|
|
4
|
%
|
|
|
48,486
|
|
|
|
45,997
|
|
|
|
5
|
%
|
Digital
|
|
2,614
|
|
|
|
2,494
|
|
|
|
5
|
%
|
|
|
8,350
|
|
|
|
7,593
|
|
|
|
10
|
%
|
Total
|
$
|
40,187
|
|
|
$
|
38,804
|
|
|
|
4
|
%
|
|
$
|
119,135
|
|
|
$
|
113,518
|
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Expenses
(1)
|
$
|
5,728
|
|
|
$
|
5,535
|
|
|
|
3
|
%
|
|
$
|
16,625
|
|
|
$
|
15,578
|
|
|
|
7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
adjusted EBITDA (1)
|
$
|
17,841
|
|
|
$
|
23,878
|
|
|
|
(25)
|
%
|
|
$
|
48,623
|
|
|
$
|
57,542
|
|
|
|
(15)
|
%
|
|
(1)
|
Cost of revenue,
operating expenses, corporate expenses, and consolidated adjusted
EBITDA are defined on page 1.
|
Entravision Communications Corporation will hold a conference
call to discuss its 2016 third quarter results on November 3, 2016 at 5 p.m.
Eastern Time. To access the conference call, please dial
412-858-4600 ten minutes prior to the start time. The call will be
webcast live and archived for replay on the investor relations
portion of the Company's web site located at
www.entravision.com.
Entravision Communications Corporation is a leading media
company that reaches and engages U.S. Latinos across acculturation
levels and media channels, as well as consumers in Mexico. The
Company's comprehensive portfolio incorporates integrated media and
marketing solutions comprised of acclaimed television, radio,
digital properties, events, and data analytics services.
Entravision has 54 primary television stations and is the largest
affiliate group of both the Univision and UniMás television
networks. Entravision also owns and operates 49 primarily
Spanish-language radio stations featuring nationally recognized
talent, as well as the Entravision Audio Network and Entravision
Solutions, a coast-to-coast national spot and network sales and
marketing organization representing Entravision's owned and
operated, as well as its affiliate partner, radio stations.
According to comScore Media Metrix®, Entravision's digital
operating group, Pulpo, is the #1-ranked online advertising
platform in Hispanic reach, and Pulpo's comprehensive media
offering, data, and consumer insights lead the industry.
Entravision shares of Class A Common Stock are traded on The New
York Stock Exchange under the symbol: EVC.
This press release contains certain forward-looking statements.
These forward-looking statements, which are included in accordance
with the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, may involve known and unknown risks,
uncertainties and other factors that may cause the Company's actual
results and performance in future periods to be materially
different from any future results or performance suggested by the
forward-looking statements in this press release. Although the
Company believes the expectations reflected in such forward-looking
statements are based upon reasonable assumptions, it can give no
assurance that actual results will not differ materially from these
expectations, and the Company disclaims any duty to update any
forward-looking statements made by the Company. From time to time,
these risks, uncertainties and other factors are discussed in the
Company's filings with the Securities and Exchange Commission.
(Financial Table Follows)
Entravision
Communications Corporation
|
Consolidated
Balance Sheets
|
(In thousands;
unaudited)
|
|
|
September
30,
|
|
|
December
31,
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
70,320
|
|
|
$
|
47,924
|
Trade receivables, net
of allowance for doubtful accounts
|
|
62,317
|
|
|
|
66,399
|
Prepaid expenses and
other current assets
|
|
6,602
|
|
|
|
5,705
|
Total current
assets
|
|
139,239
|
|
|
|
120,028
|
Property and
equipment, net
|
|
55,719
|
|
|
|
57,874
|
Intangible assets
subject to amortization, net
|
|
14,005
|
|
|
|
16,656
|
Intangible assets not
subject to amortization
|
|
220,701
|
|
|
|
220,701
|
Goodwill
|
|
50,081
|
|
|
|
50,081
|
Deferred income
taxes
|
|
49,000
|
|
|
|
57,929
|
Other
assets
|
|
2,314
|
|
|
|
1,693
|
Total
assets
|
$
|
531,059
|
|
|
$
|
524,962
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Current maturities of
long-term debt
|
$
|
3,750
|
|
|
$
|
3,750
|
Accounts payable and
accrued expenses
|
|
28,440
|
|
|
|
29,787
|
Total current
liabilities
|
|
32,190
|
|
|
|
33,537
|
Long-term debt, less
current maturities, net of unamortized debt issuance
costs
|
|
307,296
|
|
|
|
309,587
|
Other long-term
liabilities
|
|
14,687
|
|
|
|
14,565
|
Total
liabilities
|
|
354,173
|
|
|
|
357,689
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
|
Class A common
stock
|
|
6
|
|
|
|
6
|
Class B common
stock
|
|
2
|
|
|
|
2
|
Class U common
stock
|
|
1
|
|
|
|
1
|
Additional paid-in
capital
|
|
906,375
|
|
|
|
910,228
|
Accumulated
deficit
|
|
(725,450)
|
|
|
|
(738,849)
|
Accumulated other
comprehensive income (loss)
|
|
(4,048)
|
|
|
|
(4,115)
|
Total stockholders'
equity
|
|
176,886
|
|
|
|
167,273
|
Total liabilities and
stockholders' equity
|
$
|
531,059
|
|
|
$
|
524,962
|
Entravision
Communications Corporation
|
Consolidated
Statements of Operations
|
(In thousands,
except share and per share data)
|
(Unaudited)
|
|
|
Three-Month
Period
|
|
|
Nine-Month
Period
|
|
Ended September
30,
|
|
|
Ended September
30,
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenue
|
$
|
65,281
|
|
|
$
|
69,261
|
|
|
$
|
188,223
|
|
|
$
|
188,702
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue -
digital media
|
|
2,281
|
|
|
|
1,881
|
|
|
|
6,493
|
|
|
|
4,633
|
Direct operating
expenses
|
|
28,238
|
|
|
|
27,624
|
|
|
|
84,341
|
|
|
|
81,353
|
Selling, general and
administrative expenses
|
|
11,949
|
|
|
|
11,180
|
|
|
|
34,794
|
|
|
|
32,165
|
Corporate
expenses
|
|
5,728
|
|
|
|
5,535
|
|
|
|
16,625
|
|
|
|
15,578
|
Depreciation and
amortization
|
|
3,812
|
|
|
|
4,030
|
|
|
|
11,724
|
|
|
|
11,950
|
|
|
52,008
|
|
|
|
50,250
|
|
|
|
153,977
|
|
|
|
145,679
|
Operating
income
|
|
13,273
|
|
|
|
19,011
|
|
|
|
34,246
|
|
|
|
43,023
|
Interest
expense
|
|
(3,894)
|
|
|
|
(3,286)
|
|
|
|
(11,619)
|
|
|
|
(9,769)
|
Interest
income
|
|
71
|
|
|
|
12
|
|
|
|
196
|
|
|
|
31
|
Income before income
taxes
|
|
9,450
|
|
|
|
15,737
|
|
|
|
22,823
|
|
|
|
33,285
|
Income tax
expense
|
|
(4,035)
|
|
|
|
(6,444)
|
|
|
|
(9,421)
|
|
|
|
(13,467)
|
Net income
|
$
|
5,415
|
|
|
$
|
9,293
|
|
|
$
|
13,402
|
|
|
$
|
19,818
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share,
basic
|
$
|
0.06
|
|
|
$
|
0.11
|
|
|
$
|
0.15
|
|
|
$
|
0.23
|
Net income per share,
diluted
|
$
|
0.06
|
|
|
$
|
0.10
|
|
|
$
|
0.15
|
|
|
$
|
0.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share
|
$
|
0.03
|
|
|
$
|
0.03
|
|
|
$
|
0.09
|
|
|
$
|
0.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding, basic
|
|
89,590,135
|
|
|
|
88,090,143
|
|
|
|
89,208,732
|
|
|
|
87,820,029
|
Weighted average
common shares outstanding, diluted
|
|
91,489,975
|
|
|
|
90,423,333
|
|
|
|
91,188,958
|
|
|
|
90,202,389
|
Entravision
Communications Corporation
|
Consolidated
Statements of Cash Flows
|
(In thousands;
unaudited)
|
|
|
Three-Month
Period
|
|
|
Nine-Month
Period
|
|
Ended September
30,
|
|
|
Ended September
30,
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
5,415
|
|
|
$
|
9,293
|
|
|
$
|
13,402
|
|
|
$
|
19,818
|
Adjustments to
reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
3,812
|
|
|
|
4,030
|
|
|
|
11,724
|
|
|
|
11,950
|
Deferred income
taxes
|
|
3,965
|
|
|
|
6,394
|
|
|
|
8,887
|
|
|
|
12,764
|
Amortization of debt
issue costs
|
|
195
|
|
|
|
202
|
|
|
|
579
|
|
|
|
595
|
Amortization of
syndication contracts
|
|
99
|
|
|
|
91
|
|
|
|
289
|
|
|
|
262
|
Payments on
syndication contracts
|
|
(87)
|
|
|
|
(131)
|
|
|
|
(270)
|
|
|
|
(377)
|
Non-cash stock-based
compensation
|
|
744
|
|
|
|
877
|
|
|
|
2,634
|
|
|
|
2,684
|
(Increase) decrease in
accounts receivable
|
|
221
|
|
|
|
(8,573)
|
|
|
|
5,804
|
|
|
|
2,845
|
(Increase) decrease in
prepaid expenses and other assets
|
|
(569)
|
|
|
|
(795)
|
|
|
|
(952)
|
|
|
|
(1,078)
|
Increase (decrease) in
accounts payable, accrued expenses and other liabilities
|
|
684
|
|
|
|
1,625
|
|
|
|
(3,192)
|
|
|
|
(2,579)
|
Net cash provided
by operating activities
|
|
14,479
|
|
|
|
13,013
|
|
|
|
38,905
|
|
|
|
46,884
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of
short-term investments
|
|
-
|
|
|
|
-
|
|
|
|
(30,000)
|
|
|
|
-
|
Proceeds from maturity
of short term investments
|
|
30,000
|
|
|
|
-
|
|
|
|
30,000
|
|
|
|
-
|
Purchases of
investments
|
|
(250)
|
|
|
|
-
|
|
|
|
(250)
|
|
|
|
-
|
Purchases of property
and equipment and intangibles
|
|
(2,215)
|
|
|
|
(2,963)
|
|
|
|
(6,960)
|
|
|
|
(11,546)
|
Net cash provided
by (used in) investing activities
|
|
27,535
|
|
|
|
(2,963)
|
|
|
|
(7,210)
|
|
|
|
(11,546)
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from stock
option exercises
|
|
615
|
|
|
|
233
|
|
|
|
1,885
|
|
|
|
1,814
|
Payments on long-term
debt
|
|
(938)
|
|
|
|
(938)
|
|
|
|
(2,813)
|
|
|
|
(2,813)
|
Dividends
paid
|
|
(2,802)
|
|
|
|
(2,203)
|
|
|
|
(8,371)
|
|
|
|
(6,591)
|
Payment of contingent
consideration
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,000)
|
Net cash used in
financing activities
|
|
(3,125)
|
|
|
|
(2,908)
|
|
|
|
(9,299)
|
|
|
|
(8,590)
|
Net increase in
cash and cash equivalents
|
|
38,889
|
|
|
|
7,142
|
|
|
|
22,396
|
|
|
|
26,748
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning
|
|
31,431
|
|
|
|
50,866
|
|
|
|
47,924
|
|
|
|
31,260
|
Ending
|
$
|
70,320
|
|
|
$
|
58,008
|
|
|
$
|
70,320
|
|
|
$
|
58,008
|
Entravision
Communications Corporation
|
Reconciliation of
Consolidated Adjusted EBITDA to Cash Flows From Operating
Activities
|
(In thousands;
unaudited)
|
|
The most directly
comparable GAAP financial measure is operating cash flow. A
reconciliation of this non-GAAP measure to cash flows from
operating activities for each of the periods presented is as
follows:
|
|
|
Three-Month
Period
|
|
|
Nine-Month
Period
|
|
Ended September
30,
|
|
|
Ended September
30,
|
|
|
2016
|
|
|
|
2015
|
|
|
|
2016
|
|
|
|
2015
|
Consolidated adjusted
EBITDA (1)
|
$
|
17,841
|
|
|
$
|
23,878
|
|
|
$
|
48,623
|
|
|
$
|
57,542
|
Interest
expense
|
|
(3,894)
|
|
|
|
(3,286)
|
|
|
|
(11,619)
|
|
|
|
(9,769)
|
Interest
income
|
|
71
|
|
|
|
12
|
|
|
|
196
|
|
|
|
31
|
Income tax
expense
|
|
(4,035)
|
|
|
|
(6,444)
|
|
|
|
(9,421)
|
|
|
|
(13,467)
|
Amortization of
syndication contracts
|
|
(99)
|
|
|
|
(91)
|
|
|
|
(289)
|
|
|
|
(262)
|
Payments on
syndication contracts
|
|
87
|
|
|
|
131
|
|
|
|
270
|
|
|
|
377
|
Non-cash stock-based
compensation included in direct operating
expenses
|
|
(79)
|
|
|
|
(274)
|
|
|
|
(700)
|
|
|
|
(980)
|
Non-cash stock-based
compensation included in corporate expenses
|
|
(665)
|
|
|
|
(603)
|
|
|
|
(1,934)
|
|
|
|
(1,704)
|
Depreciation and
amortization
|
|
(3,812)
|
|
|
|
(4,030)
|
|
|
|
(11,724)
|
|
|
|
(11,950)
|
Net income
|
|
5,415
|
|
|
|
9,293
|
|
|
|
13,402
|
|
|
|
19,818
|
Depreciation and
amortization
|
|
3,812
|
|
|
|
4,030
|
|
|
|
11,724
|
|
|
|
11,950
|
Deferred income
taxes
|
|
3,965
|
|
|
|
6,394
|
|
|
|
8,887
|
|
|
|
12,764
|
Amortization of debt
issue costs
|
|
195
|
|
|
|
202
|
|
|
|
579
|
|
|
|
595
|
Amortization of
syndication contracts
|
|
99
|
|
|
|
91
|
|
|
|
289
|
|
|
|
262
|
Payments on
syndication contracts
|
|
(87)
|
|
|
|
(131)
|
|
|
|
(270)
|
|
|
|
(377)
|
Non-cash stock-based
compensation
|
|
744
|
|
|
|
877
|
|
|
|
2,634
|
|
|
|
2,684
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Increase) decrease in
accounts receivable
|
|
221
|
|
|
|
(8,573)
|
|
|
|
5,804
|
|
|
|
2,845
|
(Increase) decrease in
prepaid expenses and other assets
|
|
(569)
|
|
|
|
(795)
|
|
|
|
(952)
|
|
|
|
(1,078)
|
Increase (decrease) in
accounts payable, accrued expenses and other liabilities
|
|
684
|
|
|
|
1,625
|
|
|
|
(3,192)
|
|
|
|
(2,579)
|
Cash flows from
operating activities
|
$
|
14,479
|
|
|
$
|
13,013
|
|
|
$
|
38,905
|
|
|
$
|
46,884
|
|
(1)
|
Consolidated adjusted
EBITDA is defined on page 1.
|
Entravision
Communications Corporation
|
Reconciliation of
Free Cash Flow to Cash Flows From Operating
Activities
|
(In thousands;
unaudited)
|
|
The most directly
comparable GAAP financial measure is operating cash flow. A
reconciliation of this non-GAAP measure to cash flows from
operating activities for each of the periods presented is as
follows:
|
|
|
Three-Month
Period
|
|
|
Nine-Month
Period
|
|
Ended September
30,
|
|
|
Ended September
30,
|
|
|
2016
|
|
|
|
2015
|
|
|
|
2016
|
|
|
|
2015
|
Consolidated adjusted
EBITDA (1)
|
$
|
17,841
|
|
|
$
|
23,878
|
|
|
$
|
48,623
|
|
|
$
|
57,542
|
Net interest expense
(1)
|
|
(3,628)
|
|
|
|
(3,072)
|
|
|
|
(10,844)
|
|
|
|
(9,143)
|
Cash paid for income
taxes
|
|
(70)
|
|
|
|
(50)
|
|
|
|
(534)
|
|
|
|
(703)
|
Capital expenditures
(2)
|
|
(2,215)
|
|
|
|
(2,963)
|
|
|
|
(6,960)
|
|
|
|
(11,546)
|
Free cash flow
(1)
|
|
11,928
|
|
|
|
17,793
|
|
|
|
30,285
|
|
|
|
36,150
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
(2)
|
|
2,215
|
|
|
|
2,963
|
|
|
|
6,960
|
|
|
|
11,546
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Increase) decrease
in accounts receivable
|
|
221
|
|
|
|
(8,573)
|
|
|
|
5,804
|
|
|
|
2,845
|
(Increase) decrease
in prepaid expenses and other assets
|
|
(569)
|
|
|
|
(795)
|
|
|
|
(952)
|
|
|
|
(1,078)
|
Increase (decrease)
in accounts payable, accrued expenses and other
liabilities
|
|
684
|
|
|
|
1,625
|
|
|
|
(3,192)
|
|
|
|
(2,579)
|
Cash Flows From
Operating Activities
|
$
|
14,479
|
|
|
$
|
13,013
|
|
|
$
|
38,905
|
|
|
$
|
46,884
|
|
(1)
|
Consolidated adjusted
EBITDA, net interest expense, and free cash flow are defined on
page 1.
|
|
(2)
|
Capital expenditures
are not part of the consolidated statement of
operations.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/entravision-communications-corporation-reports-third-quarter-2016-results-300357065.html
SOURCE Entravision Communications Corporation