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Section 1: 8-K (8-K)

evc-8k_20200305.htm

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

FORM 8-K

 

Current Report

Pursuant to Section 13 or 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  March 5, 2020

ENTRAVISION COMMUNICATIONS CORPORATION

(Exact name of registrant as specified in its charter)

Delaware

001-15997

95-4783236

(State or other jurisdiction
of incorporation)

(Commission
File Number)

(IRS Employer
Identification No.)

2425 Olympic Boulevard, Suite 6000 West

Santa Monica, California 90404

(Address of principal executive offices) (Zip Code)

(310) 447-3870

(Registrant’s telephone number, including area code)

N/A

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

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

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Class A Common Stock

 

EVC

 

The New York Stock Exchange

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

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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

Emerging growth company 

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

 

 


Item 2.02   Results of Operations and Financial Condition.

On March 5, 2020, Entravision Communications Corporation (the “Company”) issued a press release announcing its results of operations for the three-month period ended December 31, 2019.  A copy of that press release is furnished herewith as Exhibit 99.1.

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

Item 9.01   Financial Statements and Exhibits.

(d) Exhibits

 

99.1

 

Press release issued by Entravision Communications Corporation on March 5, 2020 announcing its results of operations for the three- and twelve-month periods ended December 31, 2019.

- 2 -

 

 


SIGNATURES

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

 

 

 

ENTRAVISION COMMUNICATIONS
CORPORATION

Date:  March 5, 2020

 

By:

/s/ Walter F. Ulloa

 

 

 

Walter F. Ulloa

 

 

 

Chairman and Chief Executive

Officer

 

- 3 -

 

 

(Back To Top)

Section 2: EX-99.1 (EX-99.1)

evc-ex991_6.htm

Entravision Communications

Page 1 of 12

 

 

Exhibit 99.1

 

ENTRAVISION COMMUNICATIONS CORPORATION REPORTS

FOURTH QUARTER AND FULL YEAR 2019 RESULTS

 

- Announces Quarterly Cash Dividend of $0.05 Per Share –

 

SANTA MONICA, CALIFORNIA, March 5, 2020 – Entravision Communications Corporation (NYSE: EVC) today reported financial results for the three- and twelve-month periods ended December 31, 2019.

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 11. Unaudited financial highlights are as follows:

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2019

 

 

2018

 

 

% Change

 

 

2019

 

 

2018

 

 

% Change

 

Net revenue

 

$

70,838

 

 

$

82,073

 

 

 

(14

)%

 

$

273,575

 

 

$

297,815

 

 

 

(8

)%

Cost of revenue - digital media (1)

 

 

10,314

 

 

 

9,847

 

 

 

5

%

 

 

36,757

 

 

 

45,096

 

 

 

(18

)%

Operating expenses (2)

 

 

44,169

 

 

 

44,568

 

 

 

(1

)%

 

 

173,377

 

 

 

176,777

 

 

 

(2

)%

Corporate expenses (3)

 

 

7,887

 

 

 

7,711

 

 

 

2

%

 

 

28,067

 

 

 

26,865

 

 

 

4

%

Foreign currency (gain) loss

 

 

(223

)

 

 

1,085

 

 

*

 

 

 

754

 

 

 

1,616

 

 

 

(53

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated adjusted EBITDA (4)

 

 

11,056

 

 

 

20,936

 

 

 

(47

)%

 

 

41,209

 

 

 

54,038

 

 

 

(24

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Free cash flow (5)

 

$

4,813

 

 

$

12,237

 

 

 

(61

)%

 

$

8,292

 

 

$

25,001

 

 

 

(67

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

7,360

 

 

$

6,913

 

 

 

6

%

 

$

(19,712

)

 

$

12,161

 

 

*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share, basic

 

$

0.09

 

 

$

0.08

 

 

 

13

%

 

$

(0.23

)

 

$

0.14

 

 

*

 

Net income (loss) per share, diluted

 

$

0.09

 

 

$

0.08

 

 

 

13

%

 

$

(0.23

)

 

$

0.13

 

 

*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic

 

 

84,226,135

 

 

 

88,357,076

 

 

 

 

 

 

 

85,107,301

 

 

 

89,115,997

 

 

 

 

 

Weighted average common shares outstanding, diluted

 

 

85,449,374

 

 

 

89,598,683

 

 

 

 

 

 

 

86,224,517

 

 

 

90,328,583

 

 

 

 

 

 

(1)

Cost of revenue – digital media consists primarily of the costs of online media acquired from third-party publishers. Media cost is classified as cost of revenue in the period in which the corresponding revenue is recognized.

 

(2)

For purposes of presentation in this table, the operating expenses line item includes direct operating and selling, general and administrative expenses. Included in operating expenses are $0.4 million and $0.3 million of non-cash stock-based compensation for the three-month periods ended December 31, 2019 and 2018, respectively, and $0.7 million of non-cash stock-based compensation for each of the twelve-month periods ended December 31, 2019 and 2018. Also for purposes of presentation in this table, the operating expenses line item does not include corporate expenses, foreign currency (gain) loss, depreciation and amortization, impairment charge, gain (loss) on sale of assets, gain (loss) on debt extinguishment, other income (loss) and change in fair value of contingent consideration.

(3)

Corporate expenses include $1.5 million and $1.8 million of non-cash stock-based compensation for the three-month periods ended December 31, 2019 and 2018, respectively, and $3.6 million and $5.1 million of non-cash stock-based compensation for the twelve-month periods ended December 31, 2019 and 2018, 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, syndication programming amortization less syndication programming payments, revenue from the Federal Communications Commission, or FCC, spectrum incentive auction less related expenses, expenses associated


Entravision Communications

Page 2 of 12

 

 

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), 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, FCC reimbursement for broadcast television repack and revenue from FCC auction for broadcast spectrum 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, “Our fourth quarter results were impacted by declines in our television and radio segments compared to the prior year. However, we did achieve growth in our digital segment compared to the fourth quarter of 2018. We continue to maintain a solid balance sheet and return capital to our shareholders through our share repurchase program and dividend. Looking ahead, we remain well positioned to build on our success in further attracting Latino and other audiences worldwide, as we execute our multiplatform strategy 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 $4.2 million. The quarterly dividend will be payable on March 31, 2020 to shareholders of record as of the close of business on March 16, 2020, and the common stock will trade ex-dividend on March 13, 2020. As previously announced, the Company currently anticipates that future cash dividends will be paid on a quarterly basis; however, any decision to pay future cash dividends will be subject to approval by the Board.

 


Entravision Communications

Page 3 of 12

 

 

Financial Results

Three-Month Period Ended December 31, 2019 Compared to Three-Month Period Ended December 31, 2018

(Unaudited)

 

 

Three Months Ended

 

 

 

December 31,

 

 

 

2019

 

 

2018

 

 

% Change

 

Net revenue

 

 

70,838

 

 

 

82,073

 

 

 

(14

)%

Cost of revenue - digital media (1)

 

 

10,314

 

 

 

9,847

 

 

 

5

%

Operating expenses (1)

 

 

44,169

 

 

 

44,568

 

 

 

(1

)%

Corporate expenses (1)

 

 

7,887

 

 

 

7,711

 

 

 

2

%

Depreciation and amortization

 

 

4,236

 

 

 

4,221

 

 

 

0

%

Change in fair value of contingent consideration

 

 

(4,102

)

 

 

(2,275

)

 

 

80

%

Impairment charge

 

 

654

 

 

 

-

 

 

*

 

Foreign currency (gain) loss

 

 

(223

)

 

 

1,085

 

 

*

 

Other operating (gain) loss

 

 

(829

)

 

 

(565

)

 

 

47

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

8,732

 

 

 

17,481

 

 

 

(50

)%

Interest expense, net

 

 

(2,350

)

 

 

(3,261

)

 

 

(28

)%

Dividend income

 

 

171

 

 

 

473

 

 

 

(64

)%

Gain (loss) on debt extinguishment

 

 

(255

)

 

 

(550

)

 

 

(54

)%

Impairment loss on investment

 

 

-

 

 

 

(1,320

)

 

 

(100

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

6,298

 

 

 

12,823

 

 

 

(51

)%

Income tax (expense) benefit

 

 

1,107

 

 

 

(4,713

)

 

*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) before equity in net income (loss) of nonconsolidated affiliates

 

 

7,405

 

 

 

8,110

 

 

 

(9

)%

Equity in net income (loss) of nonconsolidated affiliates

 

 

(45

)

 

 

(1,197

)

 

 

(96

)%

Net income (loss)

 

$

7,360

 

 

$

6,913

 

 

 

6

%

 

(1)

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

Net revenue decreased to $70.8 million for the three-month period ended December 31, 2019 from $82.1 million for the three-month period ended December 31, 2018, a decrease of $11.3 million. Of the overall decrease, approximately $8.8 million was attributable to our television segment and was primarily due to a decrease in political advertising revenue, which was not material in 2019, and decreases in national and local advertising revenue, as a result primarily of ratings declines, competitive factors with other Spanish-language broadcasters, and changing demographic preferences of audiences. Additionally, as we have previously noted, there is a trend for advertising to move increasingly from traditional media, such as television, to new media, such as digital media, and we expect this trend to continue. In addition, approximately $2.9 million of the overall decrease was attributable to our radio segment and was primarily due to a decrease in political advertising revenue, which was not material in 2019, and decreases in national and local advertising revenue, as a result primarily of ratings declines, competitive factors with other Spanish-language broadcasters, and changing demographic preferences of audiences. Additionally, as we have previously noted, there is a trend for advertising to move increasingly from traditional media, such as radio, to new media, such as digital media, and we expect this trend to continue. This overall decrease was partially offset by an increase of approximately $0.3 million that was attributable to our digital segment.

Cost of revenue in our digital media segment increased to $10.3 million for the three-month period ended December 31, 2019 from $9.8 million for the three-month period ended December 31, 2018, an increase of $0.5 million. The increase was primarily due to the increase in costs associated with the increase in revenue.

Operating expenses decreased to $44.2 million for the three-month period ended December 31, 2019 from $44.6 million for the three-month period ended December 31, 2018, a decrease of $0.4 million. The decrease was primarily due to the decrease in expenses associated with the decrease in revenue and a decrease in salary expense, partially offset by an increase in severance expense in our radio segment.


Entravision Communications

Page 4 of 12

 

 

Corporate expenses increased to $7.9 million for the three-month period December 31, 2019 from $7.7 million for the three-month period ended December 31, 2018, an increase of $0.2 million, primarily due to an increase in legal expense, partially offset by a decrease in non-cash stock-based compensation expense.

Our historical revenues have primarily been denominated in U.S. dollars, and the majority of our current revenues continue to be, and is expected to remain, denominated in U.S. dollars. However, our operating expenses are generally denominated in the currencies of the countries in which our operations are located, and we have operations in countries other than the U.S., primarily related to the Headway business. As a result, we have operating expense, attributable to foreign currency loss, that is primarily related to the operations related to the Headway business. We had a foreign currency gain of $0.2 million for the three-month period December 31, 2019, compared to foreign currency loss of $1.1 million for the three-month period December 31, 2018. Foreign currency gains and losses are primarily due to currency fluctuations that affected our digital segment operations located outside the U.S., primarily related to the Headway business.

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

We recognized an impairment loss on investment of $1.3 million for the three-month period ended December 31, 2018, related to a decrease in value of a cost method investment.

Twelve-month Period Ended December 31, 2019 Compared to Twelve-month Period Ended December 31, 2018

(Unaudited)

 

 

Twelve Months Ended

 

 

 

December 31,

 

 

 

2019

 

 

2018

 

 

% Change

 

Net revenue

 

 

273,575

 

 

 

297,815

 

 

 

(8

)%

Cost of revenue - digital media (1)

 

 

36,757

 

 

 

45,096

 

 

 

(18

)%

Operating expenses (1)

 

 

173,377

 

 

 

176,777

 

 

 

(2

)%

Corporate expenses (1)

 

 

28,067

 

 

 

26,865

 

 

 

4

%

Depreciation and amortization

 

 

16,648

 

 

 

16,273

 

 

 

2

%

Change in fair value of contingent consideration

 

 

(6,478

)

 

 

(1,202

)

 

 

439

%

Impairment charge

 

 

32,097

 

 

 

-

 

 

*

 

Foreign currency (gain) loss

 

 

754

 

 

 

1,616

 

 

 

(53

)%

Other operating (gain) loss

 

 

(5,994

)

 

 

(1,187

)

 

 

405

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

(1,653

)

 

 

33,577

 

 

 

(105

)%

Interest expense, net

 

 

(10,330

)

 

 

(11,770

)

 

 

(12

)%

Dividend income

 

 

918

 

 

 

1,475

 

 

 

(38

)%

Gain (loss) on debt extinguishment

 

 

(255

)

 

 

(550

)

 

 

(54

)%

Impairment loss on investment

 

 

-

 

 

 

(1,320

)

 

 

(100

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

(11,320

)

 

 

21,412

 

 

*

 

Income tax (expense) benefit

 

 

(8,158

)

 

 

(7,877

)

 

 

4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) before equity in net income (loss) of nonconsolidated affiliates

 

 

(19,478

)

 

 

13,535

 

 

*

 

Equity in net income (loss) of nonconsolidated affiliates

 

 

(234

)

 

 

(1,374

)

 

 

(83

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(19,712

)

 

$

12,161

 

 

*

 

 

(1)

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


Entravision Communications

Page 5 of 12

 

 

Net revenue decreased to $273.6 million for the year ended December 31, 2019 from $297.8 million for the year ended December 31, 2018, a decrease of approximately $24.2 million. Of the overall decrease, approximately $12.1 million was attributable to our digital segment and was primarily due to declines in both international and domestic revenue.  This decline in digital revenue is being driven by a trend whereby revenue is shifting more to programmatic revenue. In addition, approximately $8.9 million of the overall decrease was attributable to our radio segment and was primarily due to decreases in local and national advertising revenue, as a result primarily of ratings declines, competitive factors with other Spanish-language broadcasters, changing demographic preferences of audiences, the absence of revenue from FIFA World Cup in 2019 compared to 2018, and a decrease in political advertising revenue, which was not material in 2019. Additionally, as we have previously noted, there is a trend for advertising to move increasingly from traditional media, such as radio, to new media, such as digital media, and we expect this trend to continue. Additionally, approximately $3.2 million of the overall decrease was attributable to our television segment and was primarily due to a decrease in political advertising revenue, which was not material in 2019, and decreases in national and local advertising revenue, as a result primarily of ratings declines, competitive factors with other Spanish-language broadcasters, and changing demographic preferences of audiences. Additionally, as we have previously noted, there is a trend for advertising to move increasingly from traditional media, such as television, to new media, such as digital media, and we expect this trend to continue. The overall decrease in our television segment was partially offset by increases in revenue from retransmission consent and spectrum usage rights.

Cost of revenue in our digital media segment decreased to $36.8 million for the year ended December 31, 2019 from $45.1 million for the year ended December 31, 2018, a decrease of $8.3 million, primarily due to a decrease in expenses associated with the decrease in revenue in our digital segment and a strategic shift in our digital business designed to focus on generating revenue with lower associated costs to produce higher margins.

Operating expenses decreased to $173.4 million for the twelve-month period ended December 31, 2019 from $176.8 million for the twelve-month period ended December 31, 2018, a decrease of $3.4 million. Of the overall decrease, approximately $2.7 million was attributable to our radio segment and was primarily due to a decrease in expenses associated with the decrease in advertising revenue, a decrease in bad debt expense and a decrease in salary expense, partially offset by an increase in severance expense. Additionally, $0.8 million of the overall decrease was attributable to our digital media segment and was primarily due to a decrease in expenses associated with the decrease in revenue. The overall decrease was partially offset by an increase of $0.1 attributable to our television segment and was primarily due to an increase in bad debt expense and an increase in advertising expense.

Corporate expenses increased to $28.1 million for the year ended December 31, 2019 from $26.9 million for the year ended December 31, 2018, an increase of $1.2 million. The increase was primarily due to an increase in audit fees that we incurred in 2019 in connection with the audit of our 2018 financial statements, partially offset by a decrease in non-cash stock-based compensation.

Our historical revenues have primarily been denominated in U.S. dollars, and the majority of our current revenues continue to be, and is expected to remain, denominated in U.S. dollars. However, our operating expenses are generally denominated in the currencies of the countries in which our operations are located, and we have operations in countries other than the U.S., primarily related to the Headway business. As a result, we have operating expense, attributable to foreign currency loss, that is primarily related to the operations related to the Headway business. Foreign currency loss decreased to $0.8 million for the year ended December 31, 2019 from $1.6 million for the year ended December 31, 2018, a decrease of $0.8 million, which was primarily due to currency fluctuations that affected our digital segment operations located outside the U.S., primarily related to the Headway business.

Impairment charge related to goodwill in our digital reporting unit was $27.7 million for the year ended December 31, 2019. Impairment charge related to indefinite life intangible assets in our television and radio reporting units was $4.2 million for the year ended December 31, 2019. These write-downs were made pursuant to Accounting Standards Codification (ASC) 350, Intangibles – Goodwill and Other, which requires that goodwill and certain intangible assets be tested for impairment at least annually, or more frequently if events or changes in circumstances indicate the assets might be impaired. We also recorded an impairment charge of $0.2 million to reflect the fair market value of our assets held for sale.

We recognized an impairment loss on investment of $1.3 million for the year ended December 31, 2018, related to a decrease in value of a cost method investment.

 


Entravision Communications

Page 6 of 12

 

 

Segment Results

The following represents selected unaudited segment information:

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

 

2019

 

 

 

2018

 

 

% Change

 

 

 

2019

 

 

 

2018

 

 

% Change

 

Net Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Television

 

$

36,909

 

 

$

45,528

 

 

 

(19

)%

 

$

149,654

 

 

$

152,911

 

 

 

(2

)%

Radio

 

 

13,909

 

 

 

16,796

 

 

 

(17

)%

 

 

55,013

 

 

 

63,922

 

 

 

(14

)%

Digital

 

 

20,020

 

 

 

19,749

 

 

 

1

%

 

 

68,908

 

 

 

80,982

 

 

 

(15

)%

Total

 

$

70,838

 

 

$

82,073

 

 

 

(14

)%

 

$

273,575

 

 

$

297,815

 

 

 

(8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Revenue  (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Digital

 

 

10,314

 

 

 

9,847

 

 

 

5

%

 

 

36,757

 

 

 

45,096

 

 

 

(18

)%

Total

 

$

10,314

 

 

$

9,847

 

 

 

5

%

 

$

36,757

 

 

$

45,096

 

 

 

(18

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Television

 

 

21,726

 

 

 

21,725

 

 

 

0

%

 

 

84,416

 

 

 

84,298

 

 

 

0

%

Radio

 

 

14,352

 

 

 

13,975

 

 

 

3

%

 

 

56,700

 

 

 

59,368

 

 

 

(4

)%

Digital

 

 

8,091

 

 

 

8,868

 

 

 

(9

)%

 

 

32,261

 

 

 

33,111

 

 

 

(3

)%

Total

 

$

44,169

 

 

$

44,568

 

 

 

(1

)%

 

$

173,377

 

 

$

176,777

 

 

 

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Expenses (1)

 

$

7,887

 

 

$

7,711

 

 

 

2

%

 

$

28,067

 

 

$

26,865

 

 

 

4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency (gain) loss

 

$

(223

)

 

$

1,085

 

 

*

 

 

$

754

 

 

$

1,616

 

 

 

(53

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated adjusted EBITDA (1)

 

$

11,056

 

 

$

20,936

 

 

 

(47

)%

 

$

41,209

 

 

$

54,038

 

 

 

(24

)%

 

(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 2019 fourth quarter results on March 5, 2020 at 5:00 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 is a diversified global media, marketing and technology company that reaches and engages Latino consumers in the U.S. and other markets primarily including Mexico, Latin America and Spain. Entravision’s portfolio includes digital media properties and advertising technology platforms that deliver performance-based solutions and data insights, along with 56 television stations and 49 radio stations. Entravision’s digital and technology businesses include Smadex, a leading technology platform providing mobile, programmatic, data and performance digital marketing solutions. Entravision is the largest affiliate group of both the Univision and UniMás television networks, and its Spanish-language radio stations feature its nationally recognized talent. Entravision shares of Class A Common Stock are traded on The New York Stock Exchange under the symbol: EVC. Learn more at: www.entravision.com.

 


Entravision Communications

Page 7 of 12

 

 

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.

For more information, please contact:

 

Christopher T. Young

  

Mike Smargiassi/Brad Edwards

Chief Financial Officer

  

The Plunkett Group

Entravision Communications Corporation

  

212-739-6724

310-447-3870

  

 

 

 

# # #

(Financial Table Follows)


Entravision Communications

Page 8 of 12

 

 

Entravision Communications Corporation

Consolidated Balance Sheets

(In thousands; unaudited)

 

 

December 31,

 

 

December 31,

 

 

 

2019

 

 

2018

 

ASSETS

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

33,123

 

 

$

46,733

 

Marketable securities

 

 

91,662

 

 

 

132,424

 

Restricted Cash

 

 

734

 

 

 

732

 

Trade receivables, net of allowance for doubtful accounts

 

 

71,406

 

 

 

79,308

 

Assets held for sale

 

 

950

 

 

 

1,179

 

Prepaid expenses and other current assets

 

 

11,557

 

 

 

10,672

 

Total current assets

 

 

209,432

 

 

 

271,048

 

Property and equipment, net

 

 

79,642

 

 

 

64,939

 

Intangible assets subject to amortization, net

 

 

16,772

 

 

 

22,598

 

Intangible assets not subject to amortization

 

 

252,544

 

 

 

254,598

 

Goodwill

 

 

46,511

 

 

 

74,292

 

Operating leases right of use asset

 

 

43,837

 

 

 

-

 

Other assets

 

 

7,462

 

 

 

2,934

 

Total assets

 

$

656,200

 

 

$

690,409

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Current maturities of long-term debt

 

$

3,000

 

 

$

3,000

 

Accounts payable and accrued expenses

 

 

53,931

 

 

 

51,034

 

Operating lease liabilities

 

 

9,056

 

 

 

-

 

Total current liabilities

 

 

65,987

 

 

 

54,034

 

Long-term debt, less current maturities, net of unamortized debt issuance costs

 

 

213,024

 

 

 

240,541

 

Long-term operating lease liabilities

 

 

41,387

 

 

 

-

 

Other long-term liabilities

 

 

3,371

 

 

 

16,418

 

Deferred income taxes

 

 

44,259

 

 

 

46,684

 

Total liabilities

 

 

368,028

 

 

 

357,677

 

 

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

 

 

 

Class A common stock

 

 

6

 

 

 

6

 

Class B common stock

 

 

2

 

 

 

2

 

Class U common stock

 

 

1

 

 

 

1

 

Additional paid-in capital

 

 

836,170

 

 

 

862,299

 

Accumulated deficit

 

 

(547,876

)

 

 

(528,164

)

Accumulated other comprehensive income (loss)

 

 

(131

)

 

 

(1,412

)

Total stockholders' equity

 

 

288,172

 

 

 

332,732

 

Total liabilities and stockholders' equity

 

$

656,200

 

 

$

690,409

 

 

 

 


Entravision Communications

Page 9 of 12

 

 

Entravision Communications Corporation

Consolidated Statements of Operations

(In thousands, except share and per share data)

(Unaudited)

 

  

 

Three-Month Period

 

 

Twelve-Month Period

 

 

 

Ended December 31,

 

 

Ended December 31,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net revenue

 

$

70,838

 

 

$

82,073

 

 

$

273,575

 

 

$

297,815

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue - digital media

 

 

10,314

 

 

 

9,847

 

 

 

36,757

 

 

 

45,096

 

Direct operating expenses

 

 

30,020

 

 

 

31,398

 

 

 

119,412

 

 

 

125,242

 

Selling, general and administrative expenses

 

 

14,149

 

 

 

13,170

 

 

 

53,965

 

 

 

51,535

 

Corporate expenses

 

 

7,887

 

 

 

7,711

 

 

 

28,067

 

 

 

26,865

 

Depreciation and amortization

 

 

4,236

 

 

 

4,221

 

 

 

16,648

 

 

 

16,273

 

Change in fair value of contingent consideration

 

 

(4,102

)

 

 

(2,275

)

 

 

(6,478

)

 

 

(1,202

)

Impairment charge

 

 

654

 

 

 

-

 

 

 

32,097

 

 

 

-

 

Foreign currency (gain) loss

 

 

(223

)

 

 

1,085

 

 

 

754

 

 

 

1,616

 

Other operating (gain) loss

 

 

(829

)

 

 

(565

)

 

 

(5,994

)

 

 

(1,187

)

 

 

 

62,106

 

 

 

64,592

 

 

 

275,228

 

 

 

264,238

 

Operating income (loss)

 

 

8,732

 

 

 

17,481

 

 

 

(1,653

)

 

 

33,577

 

Interest expense

 

 

(3,102

)

 

 

(4,349

)

 

 

(13,683

)

 

 

(15,743

)

Interest income

 

 

752

 

 

 

1,088

 

 

 

3,353

 

 

 

3,973

 

Dividend income

 

 

171

 

 

 

473

 

 

 

918

 

 

 

1,475

 

Gain (loss) on debt extinguishment

 

 

(255

)

 

 

(550

)

 

 

(255

)

 

 

(550

)

Impairment loss on investment

 

 

 

 

 

(1,320

)

 

 

 

 

 

(1,320

)

Income before income taxes

 

 

6,298

 

 

 

12,823

 

 

 

(11,320

)

 

 

21,412

 

Income tax (expense) benefit

 

 

1,107

 

 

 

(4,713

)

 

 

(8,158

)

 

 

(7,877

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before equity in net income (loss) of nonconsolidated affiliate

 

 

7,405

 

 

 

8,110

 

 

 

(19,478

)

 

 

13,535

 

Equity in net income (loss) of nonconsolidated affiliate

 

 

(45

)

 

 

(1,197

)

 

 

(234

)

 

 

(1,374

)

Net income (loss)

 

$

7,360

 

 

$

6,913

 

 

$

(19,712

)

 

$

12,161

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

&nb