Entravision Communications Corporation Reports Third Quarter 2021 Results

Nov 04, 2021 04:10 pm

SANTA MONICA, Calif. --

Entravision Communications Corporation (NYSE: EVC), a leading global media, marketing and technology company, today announced financial results for the three- and nine-month periods ended September 30, 2021.

Third Quarter 2021 Highlights

Net revenue up 216% over the prior-year period
Net income attributable to common stockholders up 35% over the prior-year period
Consolidated Adjusted EBITDA up 42% over the prior-year period
Operating cash flow up 50% over the prior-year period
Free cash flow up 112% over the prior-year period
Acquisition of Cisneros Interactive's remaining 49% (now wholly-owned)
Acquisition of MediaDonuts, marking entry into Southeast Asia
Quarterly cash dividend of $0.025 per share
Acquisition of 365 Digital, marking entry into Africa

“Entravision reported very strong results for the third quarter, with revenue improving 216% and adjusted EBITDA increasing by 42% over the prior-year period,” said Walter F. Ulloa, Chairman and Chief Executive Officer. “Thanks to the exceptional work of our entire team, we saw growth in core revenue across each of our business segments, with digital, in particular, making a significant contribution to our overall performance and now comprising 73% of total revenue.”

Mr. Ulloa continued, “During the quarter, we continued to strengthen our digital segment, both organically and through acquisitions. At the end of August, we acquired the remaining 49 percent of Cisneros Interactive, which is now wholly-owned by us, expanding our reach in Latin America. Prior to that, in July, we acquired MediaDonuts, marking our entry into Southeast Asia. Finally, just today, we announced the acquisition of 365 Digital, a digital marketing solutions agency in South Africa and marking our entry into Africa. Our digital operations now have a presence on five continents. These acquisitions will serve us favorably as we expand our client base and geographic footprint. We are evolving our business to meet the demands of our clients while generating value for all of our stakeholders as we build a company that is truly a digital media powerhouse."

Acquisition of 365 Digital

The Company announced today in a separate press release that, on November 1, 2021, it acquired 100% of the issued and outstanding shares of stock of 365 Digital Media (Pty) Ltd, a digital marketing solutions agency headquartered in South Africa, marking the Company's entry into Africa, and bringing the Company's digital presence to five continents. The transaction, funded from the Company’s cash on hand, includes a purchase price of approximately $1.9 million in cash, and earn-out payments based upon the achievement of certain EBITDA targets in calendar years 2022, 2023 and 2024, calculated as a pre-determined multiple of EBITDA for each of those years.

Quarterly Cash Dividend

The Company also 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 December 31, 2021 to shareholders of record as of the close of business on December 16, 2021, and the common stock will trade ex-dividend on December 15, 2021. 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.

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 10.

Unaudited Financial Highlights

	Three-Month Period									Nine-Month Period
	Ended September 30,									Ended September 30,
	2021			2020			% Change			2021			2020			% Change
Net revenue	$	199,008		$	62,978			216	%	$	526,298		$	172,343			205	%
Cost of revenue - digital (1)		124,332			7,808		*				318,118			21,602		*
Operating expenses (2)		43,113			34,061			27	%		124,969			107,368			16	%
Corporate expenses (3)		7,253			6,287			15	%		21,756			18,511			18	%
Foreign currency (gain) loss		177			(680	)	*				454			673			(33	)%

Consolidated adjusted EBITDA (4)		23,195			16,371			42	%		55,177			27,773			99	%

Free cash flow (5)	$	22,382		$	10,567			112	%	$	47,831		$	14,388			232	%

Net income (loss)	$	13,884		$	9,016			54	%	$	31,362		$	(24,238	)	*
Net (income) loss attributable to redeemable noncontrolling interest	$	(1,753	)	$	-		*			$	(5,938	)	$	-		*
Net income (loss) attributable to common stockholders	$	12,131		$	9,016			35	%	$	25,424		$	(24,238	)	*

Net income (loss) per share attributable to common stockholders, basic	$	0.14		$	0.11			27	%	$	0.30		$	(0.29	)	*
Net income (loss) per share attributable to common stockholders, diluted	$	0.14		$	0.11			27	%	$	0.29		$	(0.29	)	*
Weighted average common shares outstanding, basic		85,390,333			84,185,728						85,207,992			84,208,924
Weighted average common shares outstanding, diluted		88,315,732			84,863,020						87,694,395			84,208,924

(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 includes direct operating and selling, general and administrative expenses. Included in operating expenses are $0.3 million and $0.1 million of non-cash stock-based compensation for the three-month periods ended September 30, 2021 and 2020, respectively, and $1.0 million and $0.4 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2021 and 2020, respectively.
(3)		Corporate expenses include $0.8 million and $0.7 million of non-cash stock-based compensation for the three-month periods ended September 30, 2021 and 2020, respectively, and $2.3 million and $2.0 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2021 and 2020, 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.

Unaudited Financial Results

	Three-Month Period
	Ended September 30,
	2021			2020			% Change
Net revenue	$	199,008		$	62,978			216	%
Cost of revenue - digital (1)		124,332			7,808		*
Operating expenses (1)		43,113			34,061			27	%
Corporate expenses (1)		7,253			6,287			15	%
Depreciation and amortization		5,901			3,934			50	%
Impairment charge		166			-		*
Foreign currency (gain) loss		177			(680	)	*
Other operating (gain) loss		(2,431	)		(2,683	)		(9	)%

Operating income (loss)		20,497			14,251			44	%
Interest expense, net		(1,702	)		(1,502	)		13	%
Dividend income		207			3		*

Income (loss) before income taxes		19,002			12,752			49	%
Income tax benefit (expense)		(5,118	)		(3,736	)		37	%

Net income (loss)		13,884			9,016			54	%
Net (income) loss attributable to redeemable noncontrolling interest		(1,753	)		-		*
Net income (loss) attributable to common stockholders	$	12,131		$	9,016			35	%

(1)

Cost of revenue, operating expenses and corporate expenses are defined on page 2.

Net revenue in the third quarter of 2021 totaled $199.0 million, up 216% from $63.0 million in the prior-year period. Of the overall increase, approximately $132.4 million was attributable to our digital segment and was primarily due to advertising revenue resulting from our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which became fully-owned during the third quarter of 2021, and advertising revenue resulting from our acquisition of MediaDonuts during the third quarter of 2021. In addition, of the overall increase, approximately $4.9 million was attributable to our radio segment, primarily due to increases in local and national advertising revenue, partially offset by a decrease in political revenue. The overall increase was partially offset by a decrease of approximately $1.3 million that was attributable to our television segment primarily due to decreases in political revenue and revenue from spectrum usage rights, partially offset by increases in local and national advertising revenue.

Cost of revenue in the third quarter of 2021 totaled $124.3 million compared to $7.8 million in the prior-year period. The increase was primarily due to increased costs of revenue following our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which became wholly-owned during the third quarter of 2021, and our acquisition of MediaDonuts during the third quarter of 2021.

Operating expenses in the third quarter of 2021 totaled $43.1 million, up 27% from $34.1 million in the prior-year period. The increase was primarily due to our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which became fully-owned during the third quarter of 2021, and our acquisition of MediaDonuts during the third quarter of 2021, and due to an increase in expenses associated with the increase in advertising revenue, partially offset by a decrease in salary expense associated with furloughs and layoffs that occurred in 2020 because of the COVID-19 pandemic.

Corporate expenses in the third quarter of 2021 totaled $7.3 million, up 15% from $6.3 million in the prior-year period. The increase was primarily due to an increase in salaries and non-cash stock-based compensation expense.

	Nine-Month Period
	Ended September 30,
	2021			2020			% Change
Net revenue	$	526,298		$	172,343			205	%
Cost of revenue - digital (1)		318,118			21,602		*
Operating expenses (1)		124,969			107,368			16	%
Corporate expenses (1)		21,756			18,511			18	%
Depreciation and amortization		16,159			12,319			31	%
Impairment charge		1,604			39,835			(96	)%
Foreign currency (gain) loss		454			673			(33	)%
Other operating (gain) loss		(4,867	)		(5,549	)		(12	)%

Operating income (loss)		48,105			(22,416	)	*
Interest expense, net		(5,052	)		(5,043	)		0	%
Dividend income		211			26			712	%

Income (loss) before income taxes		43,264			(27,433	)	*
Income tax benefit (expense)		(11,902	)		3,195		*

Net income (loss)		31,362			(24,238	)	*
Net (income) loss attributable to redeemable noncontrolling interest		(5,938	)		-		*
Net income (loss) attributable to common stockholders	$	25,424		$	(24,238	)	*

(1)

Cost of revenue, operating expenses and corporate expenses are defined on page 2.

Net revenue for the nine-month period of 2021 totaled $526.3 million, up 205% from $172.3 million in the prior-year period. Of the overall increase, approximately $339.4 million was attributable to our digital segment and was primarily due to advertising revenue resulting from our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which became fully-owned during the third quarter of 2021, and advertising revenue resulting from our acquisition of MediaDonuts during the third quarter of 2021. In addition, of the overall increase, approximately $2.7 million was attributable to our television segment, primarily due to increases in local and national advertising revenue, and revenue from spectrum usage rights, partially offset by a decrease in political revenue. Additionally, of the overall increase, approximately $11.8 million was attributable to our radio segment primarily due to increases in local and national advertising revenue, partially offset by a decrease in political revenue.

Cost of revenue for the nine-month period of 2021 totaled $318.1 million compared to $21.6 million in the prior-year period. The increase was primarily due to increased costs of revenue following our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which became wholly-owned during the third quarter of 2021, and our acquisition of MediaDonuts during the third quarter of 2021.

Operating expenses for the nine-month period of 2021 totaled $125.0 million, up 16% from $107.4 million in the prior-year period. The increase was primarily due to our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which became fully-owned during the third quarter of 2021, and our acquisition of MediaDonuts during the third quarter of 2021, and due to an increase in expenses associated with the increase in advertising revenue, partially offset by decreases in bad debt and salary expense associated with furloughs and layoffs that occurred in 2020 because of the COVID-19 pandemic.

Corporate expenses for the nine-month period of 2021 totaled $21.8 million, up 18% from $18.5 million in the prior-year period. The increase was primarily due to an increase in salaries and audit fees.

Balance Sheet and Related Metrics

Cash and marketable securities as of September 30, 2021 totaled approximately $182.9 million. Total debt was $213.0 million. Net of $75 million of cash and marketable securities, total leverage as defined in the Company’s credit agreement was 1.6 times as of September 30, 2021. Net of total accessible cash and marketable securities, total leverage was 0.3 times.

Unaudited Segment Results

	Three-Month Period							Nine-Month Period
	Ended September 30,							Ended September 30,
	2021		2020		% Change			2021		2020		% Change
Net Revenue
Digital	$	146,121	$	13,655		970	%	$	377,826	$	38,359		885	%
Television		36,450		37,786		(4	)%		106,598		103,940		3	%
Radio		16,437		11,537		42	%		41,874		30,044		39	%
Total	$	199,008	$	62,978		216	%	$	526,298	$	172,343		205	%

Cost of Revenue - digital (1)
Digital	$	124,332	$	7,808	*			$	318,118	$	21,602	*

Operating Expenses (1)
Digital		13,187		5,383		145	%		36,064		18,403		96	%
Television		20,148		18,978		6	%		59,548		58,471		2	%
Radio		9,778		9,700		1	%		29,357		30,494		(4	)%
Total	$	43,113	$	34,061		27	%	$	124,969	$	107,368		16	%

Corporate Expenses (1)	$	7,253	$	6,287		15	%	$	21,756	$	18,511		18	%

Consolidated adjusted EBITDA (1)	$	23,195	$	16,371		42	%	$	55,177	$	27,773		99	%

(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 third quarter 2021 results on Thursday, November 4, 2021 at 5 p.m. Eastern Time. To access the conference call, please dial (877) 407-9716 (U.S.) or (201) 493-6779 (Int’l) ten minutes prior to the start time and reference Conference ID number 13723009. The call will also be available via live webcast on the investor relations portion of the Company's website located at www.entravision.com.

About Entravision Communications Corporation

Entravision is a diversified global media, marketing and technology company serving clients throughout the United States and in fast growing population centers in more than 30 countries across Latin America, Europe, Asia and Africa. Our dynamic portfolio of services includes digital, television and radio offerings. Digital, our largest revenue segment, is comprised of five core businesses: Entravision Digital, Smadex, Cisneros Interactive, MediaDonuts, and 365 Digital. Entravision Digital provides branding and performance digital solutions to clients and small- and mid-size businesses throughout the world, including the U.S., Latin America and Europe. Smadex provides cutting-edge mobile programmatic solutions and demand-side platforms which enable advertisers to effectively execute performance campaigns using machine-learned bidding algorithms. Cisneros Interactive provides unique digital marketing solutions representing major global publishers and ad-tech platforms in Latin America, while also managing the leading digital audio network and solutions player Audio.Ad. MediaDonuts provides digital marketing performance and branding services in the Southeast Asia region and maintains unique commercial partnerships with some of the world’s leading digital publishers and social media platforms. 365 Digital is a digital advertising solutions provider that offers exclusive sales representations with major global platforms in South Africa. Beyond digital, Entravision has 53 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 all of our innovative media, marketing and technology offerings at entravision.com or connect with us on LinkedIn and Facebook.

Forward-Looking Statements

This press release contains certain forward-looking statements. These forward-looking statements, which are included in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, may involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this press release. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that actual results will not differ materially from these expectations, and the Company disclaims any duty to update any 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,
	2021			2020
ASSETS
Current assets
Cash and cash equivalents	$	182,891		$	119,162
Marketable securities		-			27,988
Restricted cash		749			749
Trade receivables, net of allowance for doubtful accounts		168,165			142,004
Assets held for sale		2,907			2,141
Prepaid expenses and other current assets		24,803			18,021
Total current assets		379,515			310,065
Property and equipment, net		64,600			72,004
Intangible assets subject to amortization, net		65,880			49,412
Intangible assets not subject to amortization		209,153			216,653
Goodwill		68,728			58,043
Operating leases right of use asset		32,053			33,525
Other assets		8,474			7,643
Total assets	$	828,403		$	747,345


LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of long-term debt	$	4,694		$	3,000
Accounts payable and accrued expenses		179,912			126,849
Operating lease liabilities		7,353			7,290
Total current liabilities		191,959			137,139
Long-term debt, less current maturities, net of unamortized debt issuance costs		208,014			210,454
Long-term operating lease liabilities		29,851			31,775
Other long-term liabilities		80,893			3,732
Deferred income taxes		64,416			54,980
Total liabilities		575,133			438,080

Redeemable noncontrolling interest		-			33,285
Stockholders' equity
Class A common stock		6			6
Class B common stock		2			2
Class U common stock		1			1
Additional paid-in capital		780,426			828,813
Accumulated deficit		(526,362	)		(551,786	)
Accumulated other comprehensive income (loss)		(803	)		(1,056	)
Total stockholders' equity		253,270			275,980
Total liabilities and stockholders' equity	$	828,403		$	747,345

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,
	2021			2020			2021			2020
Net revenue	$	199,008		$	62,978		$	526,298		$	172,343

Expenses:
Cost of revenue - digital		124,332			7,808			318,118			21,602
Direct operating expenses		28,583			24,178			83,480			72,997
Selling, general and administrative expenses		14,530			9,883			41,489			34,371
Corporate expenses		7,253			6,287			21,756			18,511
Depreciation and amortization		5,901			3,934			16,159			12,319
Impairment charge		166			-			1,604			39,835
Foreign currency (gain) loss		177			(680	)		454			673
Other operating (gain) loss		(2,431	)		(2,683	)		(4,867	)		(5,549	)
		178,511			48,727			478,193			194,759
Operating income (loss)		20,497			14,251			48,105			(22,416	)
Interest expense		(1,714	)		(1,969	)		(5,287	)		(6,673	)
Interest income		12			467			235			1,630
Dividend income		207			3			211			26
Income (loss) before income taxes		19,002			12,752			43,264			(27,433	)
Income tax benefit (expense)		(5,118	)		(3,736	)		(11,902	)		3,195

Net income (loss)		13,884			9,016			31,362			(24,238	)
Net (income) loss attributable to redeemable noncontrolling interest		(1,753	)		-			(5,938	)		-
Net income (loss) attributable to common stockholders	$	12,131		$	9,016		$	25,424		$	(24,238	)

Basic and diluted earnings per share:
Net income (loss) per share attributable to common stockholders, basic	$	0.14		$	0.11		$	0.30		$	(0.29	)
Net income (loss) per share attributable to common stockholders, diluted	$	0.14		$	0.11		$	0.29		$	(0.29	)

Cash dividends declared per common share, basic and diluted	$	0.03		$	0.03		$	0.08		$	0.10

Weighted average common shares outstanding, basic		85,390,333			84,185,728			85,207,992			84,208,924
Weighted average common shares outstanding, diluted		88,315,732			84,863,020			87,694,395			84,208,924

Entravision Communications Corporation Consolidated Statements of Cash Flows (In thousands; unaudited)

	Three-Month Period						Nine-Month Period
	Ended September 30,						Ended September 30,
	2021			2020			2021			2020
Cash flows from operating activities:
Net income (loss)	$	13,884		$	9,016		$	31,362		$	(24,238	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		5,901			3,934			16,159			12,319
Impairment charge		166			—			1,604			39,835
Deferred income taxes		4,649			(1,346	)		8,348			(8,744	)
Non-cash interest		153			159			451			491
Amortization of syndication contracts		119			125			357			383
Payments on syndication contracts		(115	)		(72	)		(354	)		(325	)
Non-cash stock-based compensation		1,094			816			3,300			2,408
(Gain) loss on disposal of property and equipment		(2,622	)		(140	)		(2,622	)		(767	)
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		(16,361	)		(5,228	)		(15,894	)		14,285
(Increase) decrease in prepaid expenses and other assets		(642	)		1,623			2,267			6,713
Increase (decrease) in accounts payable, accrued expenses and other liabilities		3,169			(2,633	)		8,802			(16,643	)
Net cash provided by operating activities		9,395			6,254			53,780			25,717
Cash flows from investing activities:
Proceeds from sale of property and equipment and intangibles		9,431			1,100			9,431			5,089
Purchases of property and equipment		(1,433	)		(2,065	)		(4,269	)		(7,741	)
Purchases of intangible assets		—			—			—			(158	)
Purchase of a businesses, net of cash acquired		(12,847	)		—			(12,847	)		—
Proceeds from marketable securities		10,000			11,620			27,800			38,480
Purchases of investments		(800	)		—			(800	)		—
Net cash provided by investing activities		4,351			10,655			19,315			35,670
Cash flows from financing activities:
Proceeds from stock option exercises		242			—			414			—
Tax payments related to shares withheld for share-based compensation plans		(70	)		—			(528	)		(15	)
Payments on long-term debt		(750	)		(750	)		(2,250	)		(2,250	)
Dividends paid		(2,136	)		(2,106	)		(6,395	)		(8,428	)
Repurchase of Class A common stock		—			—			—			(525	)
Payments of capitalized debt costs		—			—			(604	)		—
Net cash used in financing activities		(2,714	)		(2,856	)		(9,363	)		(11,218	)
Effect of exchange rates on cash, cash equivalents and restricted cash		(3	)		(39	)		(3	)		(7	)
Net increase (decrease) in cash, cash equivalents and restricted cash		11,029			14,014			63,729			50,162
Cash, cash equivalents and restricted cash:
Beginning		172,611			70,005			119,911			33,857
Ending	$	183,640		$	84,019		$	183,640		$	84,019

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,
	2021			2020			2021			2020

Consolidated adjusted EBITDA (1)	$	23,195		$	16,371		$	55,177		$	27,773
EBITDA attributable to redeemable noncontrolling interest		2,036			-			9,127			-
Interest expense		(1,714	)		(1,969	)		(5,287	)		(6,673	)
Interest income		12			467			235			1,630
Dividend income		207			3			211			26
Income tax expense		(5,118	)		(3,736	)		(11,902	)		3,195
Amortization of syndication contracts		(119	)		(125	)		(357	)		(383	)
Payments on syndication contracts		115			72			354			325
Non-cash stock-based compensation included in direct operating expenses		(321	)		(148	)		(971	)		(383	)
Non-cash stock-based compensation included in corporate expenses		(773	)		(668	)		(2,329	)		(2,025	)
Depreciation and amortization		(5,901	)		(3,934	)		(16,159	)		(12,319	)
Impairment charge		(166	)		-			(1,604	)		(39,835	)
Non-recurring cash severance charge		-			-			-			(1,118	)
Other operating gain (loss)		2,431			2,683			4,867			5,549
Net (income) loss attributable to redeemable noncontrolling interest		(1,753	)		-			(5,938	)		-
Net income (loss) attributable to common stockholders		12,131			9,016			25,424			(24,238	)

Depreciation and amortization		5,901			3,934			16,159			12,319
Impairment charge		166			-			1,604			39,835
Deferred income taxes		4,649			(1,346	)		8,348			(8,744	)
Non-cash interest		153			159			451			491
Amortization of syndication contracts		119			125			357			383
Payments on syndication contracts		(115	)		(72	)		(354	)		(325	)
Non-cash stock-based compensation		1,094			816			3,300			2,408
(Gain) loss on disposal of property and equipment		(2,622	)		(140	)		(2,622	)		(767	)
Net income (loss) attributable to redeemable noncontrolling interest		1,753			-			5,938			-
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		(16,361	)		(5,228	)		(15,894	)		14,285
(Increase) decrease in prepaid expenses and other assets		(642	)		1,623			2,267			6,713
Increase (decrease) in accounts payable, accrued expenses and other liabilities		3,169			(2,633	)		8,802			(16,643	)
Cash flows from operating activities		9,395			6,254			53,780			25,717

(1)

Consolidated adjusted EBITDA is defined on page 2.

Entravision Communications Corporation
Reconciliation of Free Cash Flow to Cash Flows From Operating Activities
(In thousands; unaudited)

	Three-Month Period						Nine-Month Period
	Ended September 30,						Ended September 30,
	2021			2020			2021			2020
Consolidated adjusted EBITDA (1)	$	23,195		$	16,371		$	55,177		$	27,773
Net interest expense (1)		(1,549	)		(1,343	)		(4,601	)		(4,552	)
Dividend income		207			3			211			26
Cash paid for income taxes		(469	)		(5,082	)		(3,554	)		(5,549	)
Capital expenditures (2)		(1,433	)		(2,065	)		(4,269	)		(7,741	)
Non-recurring cash severance charge		-			-			-			(1,118	)
Other operating gain (loss)		2,431			2,683			4,867			5,549
Free cash flow (1)		22,382			10,567			47,831			14,388

Capital expenditures (2)		1,433			2,065			4,269			7,741
EBITDA attributable to redeemable noncontrolling interest		2,036			-			9,127			-
(Gain) loss on disposal of property and equipment		(2,622	)		(140	)		(2,622	)		(767	)
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		(16,361	)		(5,228	)		(15,894	)		14,285
(Increase) decrease in prepaid expenses and other assets		(642	)		1,623			2,267			6,713
Increase (decrease) in accounts payable, accrued expenses and other liabilities		3,169			(2,633	)		8,802			(16,643	)
Cash Flows From Operating Activities	$	9,395		$	6,254		$	53,780		$	25,717

(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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211104006282/en/

Christopher T. Young
Chief Financial Officer
Entravision Communications Corporation
310-447-3870

Kimberly Esterkin
ADDO Investor Relations
310-829-5400
[email protected]

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Entravision Communications Corporation Reports Third Quarter 2021 Results