Business Wire | Mar 11, 2021 04:18PM EST

Entravision Communications Corporation Reports Fourth Quarter and Full Year 2020 Results

Mar. 11, 2021

SANTA MONICA, Calif.--(BUSINESS WIRE)--Mar. 11, 2021--Entravision Communications Corporation (NYSE: EVC) today reported unaudited financial results for the three- and twelve-month periods ended December 31, 2020.

"Entravision capped off a very challenging year with an exceptionally strong fourth quarter," said Walter F. Ulloa, Chairman and Chief Executive Officer. "In addition to achieving record political revenues in the fourth quarter of 2020, our digital business expanded significantly and was up 424% over the prior-year period due in large part to our acquisition of a majority interest in Cisneros Interactive. Importantly, all three of our business segments grew in the fourth quarter of 2020 compared to the prior year, positioning us well for 2021."

Mr. Ulloa continued, "This past quarter, as we focused on streamlining our cost structure to maintain the stability of our business, we also made great progress in strengthening our digital segment. In November, we appointed industry veteran and member of our Board of Directors Juan Saldvar as our new Chief Digital, Strategy and Accountability Officer. Juan's appointment followed a number of strategic moves in 2020 to strengthen our portfolio of digital assets, including both the formation of Entravision Digital and our majority investment in Cisneros Interactive. We will continue to build upon our digital offerings, while also maintaining and strengthening our television and radio segments."

Unaudited 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 12. Unaudited financial highlights are as follows:

Three Months Ended Twelve Months Ended

December 31, December 31,

2020 2019 % 2020 2019 % Change Change

Net revenue $ 171,683 $ 70,838 142 % $ 344,026 $ 273,575 26 %

Cost ofrevenue - 85,326 10,314 727 % 106,928 36,757 191 %digital (1)

Operating 45,945 44,169 4 % 153,313 173,377 (12 )%expenses (2)

Corporate 9,296 7,887 18 % 27,807 28,067 (1 )%expenses (3)

Foreigncurrency (1,725 ) (223 ) 674 % (1,052 ) 754 * (gain) loss



Consolidatedadjusted 32,646 11,056 195 % 60,419 41,209 47 %EBITDA (4)



Free cash flow $ 28,641 $ 4,813 495 % $ 43,029 $ 8,292 419 %(5)



Net income $ 22,851 $ 7,360 210 % $ (1,387 ) $ (19,712 ) (93 )%(loss)

Net (income)lossattributable $ (2,523 ) $ - * $ (2,523 ) $ - * to redeemablenoncontrollinginterest

Net income(loss)attributable $ 20,328 $ 7,360 176 % $ (3,910 ) $ (19,712 ) (80 )%to commonstockholders



Net income(loss) pershareattributable $ 0.24 $ 0.09 167 % $ (0.05 ) $ (0.23 ) (78 )%to commonstockholders,basic anddiluted



Weightedaverage commonshares 84,297,592 84,226,135 84,231,212 85,107,301 outstanding,basic

Weightedaverage commonshares 85,985,630 85,449,374 84,231,212 85,107,301 outstanding,diluted

(1)

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

(2)

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 $0.9 million and $0.4 million of non-cash stock-based compensation for the three-month periods ended December 31, 2020 and 2019, respectively, and $1.2 million and $0.7 million of non-cash stock-based compensation for the twelve-month periods ended December 31, 2020 and 2019, respectively. 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 $1.9 million and $1.5 million of non-cash stock-based compensation for the three-month periods ended December 31, 2020 and 2019, respectively, and $3.9 million and $3.6 million of non-cash stock-based compensation for the twelve-month periods ended December 31, 2020 and 2019, 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.

Quarterly Cash Dividend

As previously announced by the Company on March 3, 2021, the Company's 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 March 31, 2021 to shareholders of record as of the close of business on March 16, 2021, and the common stock will trade ex-dividend on March 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.

Expects to File Form 12b-25 for Extension of Filing Deadline for 2020 Form 10-K

The Company also announced today that it expects to file a notification of late filing on Form 12b-25 with the Securities and Exchange Commission, which provides an automatic 15-day extension of the filing deadline for its Annual Report on Form 10-K for the fiscal year ended December 31, 2020 (the "2020 Form 10-K"), to March 31, 2021. The Company expects to file the 2020 Form 10-K as soon as practicable within the extension period.

Unaudited Financial Results

The financial results included in this press release are unaudited and represent the most current information available to management. The Company's independent registered public accounting firm has informed the Company that they have not completed their audit procedures as of the date of this press release. During the course of the completion of these audit procedures, items may be identified that would require the Company to make adjustments which could result in material changes to the Company's unaudited financial results included in this press release. Consequently, the unaudited financial results included in this press release should not be viewed as substitutes for the Company's audited results that will be included in the Company's Annual Report on Form 10-K. Unaudited financial results are as follows:

Cost of revenue - digital consists primarily of the costs of online media(1) acquired from third-party publishers. Media cost is classified as cost of revenue in the period in which the corresponding revenue is recognized.



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 $0.9 million and $0.4 million of non-cash stock-based compensation for the three-month periods ended December 31, 2020 and 2019, respectively, and $1.2 million and $0.7(2) million of non-cash stock-based compensation for the twelve-month periods ended December 31, 2020 and 2019, respectively. 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.

Corporate expenses include $1.9 million and $1.5 million of non-cash stock-based compensation for the three-month periods ended December 31,(3) 2020 and 2019, respectively, and $3.9 million and $3.6 million of non-cash stock-based compensation for the twelve-month periods ended December 31, 2020 and 2019, respectively.

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(4) 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.



Free cash flow is defined as consolidated adjusted EBITDA less cash paid for income taxes, net interest expense, capital expenditures and(5) 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.

Quarterly Cash Dividend

As previously announced by the Company on March 3, 2021, the Company's 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 March 31, 2021 to shareholders of record as of the close of business on March 16, 2021, and the common stock will trade ex-dividend on March 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.

Expects to File Form 12b-25 for Extension of Filing Deadline for 2020 Form 10-K

The Company also announced today that it expects to file a notification of late filing on Form 12b-25 with the Securities and Exchange Commission, which provides an automatic 15-day extension of the filing deadline for its Annual Report on Form 10-K for the fiscal year ended December 31, 2020 (the "2020 Form 10-K"), to March 31, 2021. The Company expects to file the 2020 Form 10-K as soon as practicable within the extension period.

Unaudited Financial Results

The financial results included in this press release are unaudited and represent the most current information available to management. The Company's independent registered public accounting firm has informed the Company that they have not completed their audit procedures as of the date of this press release. During the course of the completion of these audit procedures, items may be identified that would require the Company to make adjustments which could result in material changes to the Company's unaudited financial results included in this press release. Consequently, the unaudited financial results included in this press release should not be viewed as substitutes for the Company's audited results that will be included in the Company's Annual Report on Form 10-K. Unaudited financial results are as follows:

Three-Month Period Ended December 31, 2020 Compared to Three-Month Period EndedDecember 31, 2019

(Unaudited)



Three Months Ended

December 31,

2020 2019 % Change

Net revenue 171,683 70,838 142 %

Cost of revenue - digital (1) 85,326 10,314 727 %

Operating expenses (1) 45,945 44,169 4 %

Corporate expenses (1) 9,296 7,887 18 %

Depreciation and amortization 4,963 4,236 17 %

Change in fair value of contingent - (4,102 ) (100 )consideration %

Impairment charge 200 654 (69 ) %

Foreign currency (gain) loss (1,725 ) (223 ) 674 %

Other operating (gain) loss (1,346 ) (829 ) 62 %



Operating income (loss) 29,024 8,732 232 %

Interest expense, net (1,474 ) (2,350 ) (37 ) %

Dividend income 2 171 (99 ) %

Gain (loss) on debt extinguishment - (255 ) (100 ) %



Income before income taxes 27,552 6,298 337 %



Income tax (expense) benefit (4,701 ) 1,107 *



Net income (loss) before equity in net 22,851 7,405 209 %income (loss) of nonconsolidated affiliates

Equity in net income (loss) of - (45 ) (100 )nonconsolidated affiliates %



Net income (loss) 22,851 7,360 210 %

Net (income) loss attributable to (2,523 ) - * redeemable noncontrolling interest

Net income (loss) attributable to common $ 20,328 $ 7,360 176 %stockholders

(1)

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

Net revenue increased to $171.7 million for the three-month period ended December 31, 2020 from $70.8 million for the three-month period ended December 31, 2019, an increase of approximately $100.9 million. Of the overall increase, approximately $13.6 million was attributable to our television segment and was primarily due to increases in political advertising revenue and an increase in national advertising revenue, partially offset by a decrease in local advertising revenue. The decrease in local advertising revenue was primarily a result of the continuing economic crisis resulting from the COVID-19 pandemic, ratings declines, competitive factors with another Spanish-language broadcaster, and changing demographic preferences of audiences. We have previously noted 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. Additionally, approximately $84.9 million of the overall increase was attributable to our digital segment and was primarily due to the acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which did not contribute to net revenue in prior periods, partially offset by a decrease in advertising revenue as a result of declines in pre-acquisition digital revenue, and the continuing economic crisis resulting from the COVID-19 pandemic. We have previously noted a trend in our domestic digital operations whereby revenue is shifting more to programmatic revenue, and this trend is now growing in markets outside the United States. As a result, advertisers are demanding more efficiency and lower cost from intermediaries like us. In response to this trend, we are offering programmatic alternatives to advertisers, which is putting pressure on margins. We expect this trend will continue in future periods, likely resulting in a permanent higher volume, lower margin business in our digital segment. The digital advertising industry remains dynamic and is continuing to undergo rapid changes in technology and competition. We expect this trend to continue and possibly accelerate. We must continue to remain vigilant to meet these dynamic and rapid changes including the need to further adjust our business strategies accordingly. No assurances can be given that such adjustments will be successful. Additionally, approximately $2.3 million of the overall increase was attributable to our radio segment and was primarily due to an increase in political advertising revenue and an increase in national advertising revenue, partially offset by decreases in local advertising revenue. The decrease in local advertising revenue was primarily a result of the continuing economic crisis resulting from the COVID-19 pandemic, ratings declines and competitive factors with other Spanish-language broadcasters, and changing demographic preferences of audiences. We have previously noted 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 trend has had a more significant impact on our radio revenue as compared to television revenue, and we expect that this trend will also continue.

Cost of revenue in our digital segment increased to $85.3 million for the three-month period ended December 31, 2020 from $10.3 million for the three-month period ended December 31, 2019, an increase of $75.0 million, primarily due to increased costs of revenue associated with Cisneros Interactive during the fourth quarter of 2020, following its acquisition during the fourth quarter of 2020, which did not incur cost of revenue for us in prior periods.

Operating expenses increased to $45.9 million for the three-month period ended December 31, 2020 from $44.2 million for the three-month period ended December 31, 2019, an increase of $1.7 million. Of the overall increase, approximately $0.7 million was attributable to our television segment and was primarily due to expenses associated with the increase in political and national advertising revenue, partially offset by decreases in salary expense associated with furloughs and layoffs. Additionally, approximately $4.1 million of the overall increase was attributable to our digital segment primarily due to the acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which did not incur direct operating expenses for us in prior periods, partially offset by decreases in salary expense associated with furloughs and layoffs, and expenses associated with the decrease in advertising revenue as a result of declines in pre-acquisition digital revenue. The overall increase was partially offset by a decrease of approximately $3.1 million attributable to our radio segment and was primarily due to decreases in salary expense associated with furloughs and layoffs, and payroll tax expense.

Corporate expenses increased to $9.3 million for the three-month period ended December 31, 2020 from $7.9 million for the three-month period ended December 31, 2019, an increase of $1.4 million. The increase was primarily due to retroactive restoration and payments of previously reduced salaries to the levels prior to the reduction in salaries due to the COVID-19 pandemic.

Our historical revenues have primarily been denominated in U.S. dollars, and the majority of our current revenues continue to be, and are 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 United States, primarily those operations related to our digital business. As a result, we have operating expense, attributable to foreign currency, that is primarily related to the operations related to our digital business. We had a foreign currency gain of $1.7 million for the three-month period ended December 31, 2020 compared to a foreign currency gain of $0.2 million for the three-month period ended December 31, 2019. Foreign currency gain was primarily due to currency fluctuations that affected our digital segment operations located outside the United States.

Impairment charge related to certain FCC licenses in our radio reporting unit was $0.2 million for the three-month period ended December 31, 2020. 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.

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

Net revenue increased to $171.7 million for the three-month period ended December 31, 2020 from $70.8 million for the three-month period ended December 31, 2019, an increase of approximately $100.9 million. Of the overall increase, approximately $13.6 million was attributable to our television segment and was primarily due to increases in political advertising revenue and an increase in national advertising revenue, partially offset by a decrease in local advertising revenue. The decrease in local advertising revenue was primarily a result of the continuing economic crisis resulting from the COVID-19 pandemic, ratings declines, competitive factors with another Spanish-language broadcaster, and changing demographic preferences of audiences. We have previously noted 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. Additionally, approximately $84.9 million of the overall increase was attributable to our digital segment and was primarily due to the acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which did not contribute to net revenue in prior periods, partially offset by a decrease in advertising revenue as a result of declines in pre-acquisition digital revenue, and the continuing economic crisis resulting from the COVID-19 pandemic. We have previously noted a trend in our domestic digital operations whereby revenue is shifting more to programmatic revenue, and this trend is now growing in markets outside the United States. As a result, advertisers are demanding more efficiency and lower cost from intermediaries like us. In response to this trend, we are offering programmatic alternatives to advertisers, which is putting pressure on margins. We expect this trend will continue in future periods, likely resulting in a permanent higher volume, lower margin business in our digital segment. The digital advertising industry remains dynamic and is continuing to undergo rapid changes in technology and competition. We expect this trend to continue and possibly accelerate. We must continue to remain vigilant to meet these dynamic and rapid changes including the need to further adjust our business strategies accordingly. No assurances can be given that such adjustments will be successful. Additionally, approximately $2.3 million of the overall increase was attributable to our radio segment and was primarily due to an increase in political advertising revenue and an increase in national advertising revenue, partially offset by decreases in local advertising revenue. The decrease in local advertising revenue was primarily a result of the continuing economic crisis resulting from the COVID-19 pandemic, ratings declines and competitive factors with other Spanish-language broadcasters, and changing demographic preferences of audiences. We have previously noted 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 trend has had a more significant impact on our radio revenue as compared to television revenue, and we expect that this trend will also continue.

Cost of revenue in our digital segment increased to $85.3 million for the three-month period ended December 31, 2020 from $10.3 million for the three-month period ended December 31, 2019, an increase of $75.0 million, primarily due to increased costs of revenue associated with Cisneros Interactive during the fourth quarter of 2020, following its acquisition during the fourth quarter of 2020, which did not incur cost of revenue for us in prior periods.

Operating expenses increased to $45.9 million for the three-month period ended December 31, 2020 from $44.2 million for the three-month period ended December 31, 2019, an increase of $1.7 million. Of the overall increase, approximately $0.7 million was attributable to our television segment and was primarily due to expenses associated with the increase in political and national advertising revenue, partially offset by decreases in salary expense associated with furloughs and layoffs. Additionally, approximately $4.1 million of the overall increase was attributable to our digital segment primarily due to the acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which did not incur direct operating expenses for us in prior periods, partially offset by decreases in salary expense associated with furloughs and layoffs, and expenses associated with the decrease in advertising revenue as a result of declines in pre-acquisition digital revenue. The overall increase was partially offset by a decrease of approximately $3.1 million attributable to our radio segment and was primarily due to decreases in salary expense associated with furloughs and layoffs, and payroll tax expense.

Corporate expenses increased to $9.3 million for the three-month period ended December 31, 2020 from $7.9 million for the three-month period ended December 31, 2019, an increase of $1.4 million. The increase was primarily due to retroactive restoration and payments of previously reduced salaries to the levels prior to the reduction in salaries due to the COVID-19 pandemic.

Our historical revenues have primarily been denominated in U.S. dollars, and the majority of our current revenues continue to be, and are 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 United States, primarily those operations related to our digital business. As a result, we have operating expense, attributable to foreign currency, that is primarily related to the operations related to our digital business. We had a foreign currency gain of $1.7 million for the three-month period ended December 31, 2020 compared to a foreign currency gain of $0.2 million for the three-month period ended December 31, 2019. Foreign currency gain was primarily due to currency fluctuations that affected our digital segment operations located outside the United States.

Impairment charge related to certain FCC licenses in our radio reporting unit was $0.2 million for the three-month period ended December 31, 2020. 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.

Twelve-Month Period Ended December 31, 2020 Compared to Twelve-Month PeriodEnded December 31, 2019

(Unaudited)



Twelve Months Ended

December 31,

2020 2019 % Change

Net revenue 344,026 273,575 26 %

Cost of revenue - digital (1) 106,928 36,757 191 %

Operating expenses (1) 153,313 173,377 (12 ) %

Corporate expenses (1) 27,807 28,067 (1 ) %

Depreciation and amortization 17,282 16,648 4 %

Change in fair value of contingent - (6,478 ) (100 )consideration %

Impairment charge 40,035 32,097 25 %

Foreign currency (gain) loss (1,052 ) 754 *

Other operating (gain) loss (6,895 ) (5,994 ) 15 %



Operating income (loss) 6,608 (1,653 ) (500 ) %

Interest expense, net (6,517 ) (10,330 ) (37 ) %

Dividend income 28 918 (97 ) %

Gain (loss) on debt extinguishment - (255 ) (100 ) %



Income before income taxes 119 (11,320 ) *

Income tax (expense) benefit (1,506 ) (8,158 ) (82 ) %



Net income (loss) before equity in net )income (loss) of nonconsolidated (1,387 ) (19,478 ) (93 %affiliates

Equity in net income (loss) of - (234 ) (100 )nonconsolidated affiliates %



Net income (loss) (1,387 ) (19,712 ) (93 ) %

Net (income) loss attributable to (2,523 ) - * redeemable noncontrolling interest

Net income (loss) attributable to common $ (3,910 ) $ (19,712 ) (80 )stockholders %

(1)

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

Net revenue increased to $344.0 million for the year ended December 31, 2020 from $273.6 million for the year ended December 31, 2019, an increase of approximately $70.4 million. Of the overall increase, approximately $4.8 million was attributable to our television segment and was primarily due to increases in political advertising revenue and retransmission consent revenue, partially offset by decreases in local and national advertising revenue and revenue from spectrum usage rights. The decrease in local and national advertising revenue was primarily a result of the continuing economic crisis resulting from the COVID-19 pandemic, ratings declines, competitive factors with another Spanish-language broadcaster, and changing demographic preferences of audiences. We have previously noted 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. Additionally, approximately $74.4 million of the overall increase was attributable to our digital segment and was primarily due to the acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which did not contribute to net revenue in prior periods, partially offset by a decrease in advertising revenue as a result of declines in pre-acquisition digital revenue, and the continuing economic crisis resulting from the COVID-19 pandemic. We have previously noted a trend in our domestic digital operations whereby revenue is shifting more to programmatic revenue, and this trend is now growing in markets outside the United States. As a result, advertisers are demanding more efficiency and lower cost from intermediaries like us. In response to this trend, we are offering programmatic alternatives to advertisers, which is putting pressure on margins. We expect this trend will continue in future periods, likely resulting in a permanent higher volume, lower margin business in our digital segment. The digital advertising industry remains dynamic and is continuing to undergo rapid changes in technology and competition. We expect this trend to continue and possibly accelerate. We must continue to remain vigilant to meet these dynamic and rapid changes including the need to further adjust our business strategies accordingly. No assurances can be given that such adjustments will be successful. The overall increase in net revenue was partially offset by a decrease of approximately $8.7 million attributable to our radio segment and was primarily due to decreases in local and national advertising revenue, partially offset by an increase in political advertising revenue. The decrease in local and national advertising revenue was primarily a result of the continuing economic crisis resulting from the COVID-19 pandemic, ratings declines and competitive factors with other Spanish-language broadcasters, and changing demographic preferences of audiences. We have previously noted 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 trend has had a more significant impact on our radio revenue as compared to television revenue, and we expect that this trend will also continue.

Cost of revenue in our digital segment increased to $106.9 million for the year ended December 31, 2020 from $36.8 million for the year ended December 31, 2019, an increase of $70.1 million, primarily due to increased costs of revenue associated with Cisneros Interactive during the fourth quarter of 2020, following its acquisition during the fourth quarter of 2020, which did not incur cost of revenue for us in prior periods.

Operating expenses decreased to $153.3 million for the year ended December 31, 2020 from $173.4 million for the year ended December 31, 2019, a decrease of approximately $20.1 million. Of the overall decrease, approximately $3.5 million was attributable to our television segment and was primarily due to decreases in salary expense associated with furloughs and layoffs, payroll tax expense and expenses associated with the decrease in local and national advertising revenue. Additionally, approximately $1.7 million of the overall decrease was attributable to our digital segment primarily due to decreases in salary expense associated with furloughs and layoffs, and expenses associated with the decrease in advertising revenue as a result of declines in pre-acquisition digital revenue, partially offset by an increase associated with the acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which did not incur direct operating expenses for us in prior periods. Additionally, approximately $14.9 million of the overall decrease was attributable to our radio segment and was primarily due to decreases in salary expense associated with furloughs and layoffs, payroll tax expense and expenses associated with the decrease in advertising revenue.

Corporate expenses decreased to $27.8 million for the year ended December 31, 2020 from $28.1 million for the year ended December 31, 2019, a decrease of $0.3 million. The decrease was primarily due to decreases in audit fees, travel and rent expense. These decreases were partially offset by expenses for legal and financial due diligence related to the acquisition of a majority interest in Cisneros Interactive.

Our historical revenues have primarily been denominated in U.S. dollars, and the majority of our current revenues continue to be, and are 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 United States, primarily those operations related to our digital business. As a result, we have operating expense, attributable to foreign currency, that is primarily related to the operations related to our digital business. Foreign currency gain was $1.1 million for the year ended December 31, 2020, compared to foreign currency loss of $0.8 million for the year ended December 31, 2019, primarily due to currency fluctuations that affected our digital segment operations located outside the United States.

Impairment charge related to certain FCC licenses in our television and radio reporting units was $23.5 million and $9.0 million, respectively, for the year ended December 31, 2020. Impairment charge related to goodwill in our digital reporting unit was $0.8 million for the year ended December 31, 2020. Impairment charges related to intangibles subject to amortization and property and equipment in our digital reporting unit was $5.3 million and $1.5 million, respectively, for the year ended December 31, 2020.

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. We also recorded an impairment charge of $0.2 million for the year ended December 31, 2019 to reflect the fair market value of our assets held for sale.

Segment Results

The following represents selected unaudited segment information:

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

Net revenue increased to $344.0 million for the year ended December 31, 2020 from $273.6 million for the year ended December 31, 2019, an increase of approximately $70.4 million. Of the overall increase, approximately $4.8 million was attributable to our television segment and was primarily due to increases in political advertising revenue and retransmission consent revenue, partially offset by decreases in local and national advertising revenue and revenue from spectrum usage rights. The decrease in local and national advertising revenue was primarily a result of the continuing economic crisis resulting from the COVID-19 pandemic, ratings declines, competitive factors with another Spanish-language broadcaster, and changing demographic preferences of audiences. We have previously noted 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. Additionally, approximately $74.4 million of the overall increase was attributable to our digital segment and was primarily due to the acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which did not contribute to net revenue in prior periods, partially offset by a decrease in advertising revenue as a result of declines in pre-acquisition digital revenue, and the continuing economic crisis resulting from the COVID-19 pandemic. We have previously noted a trend in our domestic digital operations whereby revenue is shifting more to programmatic revenue, and this trend is now growing in markets outside the United States. As a result, advertisers are demanding more efficiency and lower cost from intermediaries like us. In response to this trend, we are offering programmatic alternatives to advertisers, which is putting pressure on margins. We expect this trend will continue in future periods, likely resulting in a permanent higher volume, lower margin business in our digital segment. The digital advertising industry remains dynamic and is continuing to undergo rapid changes in technology and competition. We expect this trend to continue and possibly accelerate. We must continue to remain vigilant to meet these dynamic and rapid changes including the need to further adjust our business strategies accordingly. No assurances can be given that such adjustments will be successful. The overall increase in net revenue was partially offset by a decrease of approximately $8.7 million attributable to our radio segment and was primarily due to decreases in local and national advertising revenue, partially offset by an increase in political advertising revenue. The decrease in local and national advertising revenue was primarily a result of the continuing economic crisis resulting from the COVID-19 pandemic, ratings declines and competitive factors with other Spanish-language broadcasters, and changing demographic preferences of audiences. We have previously noted 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 trend has had a more significant impact on our radio revenue as compared to television revenue, and we expect that this trend will also continue.

Cost of revenue in our digital segment increased to $106.9 million for the year ended December 31, 2020 from $36.8 million for the year ended December 31, 2019, an increase of $70.1 million, primarily due to increased costs of revenue associated with Cisneros Interactive during the fourth quarter of 2020, following its acquisition during the fourth quarter of 2020, which did not incur cost of revenue for us in prior periods.

Operating expenses decreased to $153.3 million for the year ended December 31, 2020 from $173.4 million for the year ended December 31, 2019, a decrease of approximately $20.1 million. Of the overall decrease, approximately $3.5 million was attributable to our television segment and was primarily due to decreases in salary expense associated with furloughs and layoffs, payroll tax expense and expenses associated with the decrease in local and national advertising revenue. Additionally, approximately $1.7 million of the overall decrease was attributable to our digital segment primarily due to decreases in salary expense associated with furloughs and layoffs, and expenses associated with the decrease in advertising revenue as a result of declines in pre-acquisition digital revenue, partially offset by an increase associated with the acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, which did not incur direct operating expenses for us in prior periods. Additionally, approximately $14.9 million of the overall decrease was attributable to our radio segment and was primarily due to decreases in salary expense associated with furloughs and layoffs, payroll tax expense and expenses associated with the decrease in advertising revenue.

Corporate expenses decreased to $27.8 million for the year ended December 31, 2020 from $28.1 million for the year ended December 31, 2019, a decrease of $0.3 million. The decrease was primarily due to decreases in audit fees, travel and rent expense. These decreases were partially offset by expenses for legal and financial due diligence related to the acquisition of a majority interest in Cisneros Interactive.

Our historical revenues have primarily been denominated in U.S. dollars, and the majority of our current revenues continue to be, and are 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 United States, primarily those operations related to our digital business. As a result, we have operating expense, attributable to foreign currency, that is primarily related to the operations related to our digital business. Foreign currency gain was $1.1 million for the year ended December 31, 2020, compared to foreign currency loss of $0.8 million for the year ended December 31, 2019, primarily due to currency fluctuations that affected our digital segment operations located outside the United States.

Impairment charge related to certain FCC licenses in our television and radio reporting units was $23.5 million and $9.0 million, respectively, for the year ended December 31, 2020. Impairment charge related to goodwill in our digital reporting unit was $0.8 million for the year ended December 31, 2020. Impairment charges related to intangibles subject to amortization and property and equipment in our digital reporting unit was $5.3 million and $1.5 million, respectively, for the year ended December 31, 2020.

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. We also recorded an impairment charge of $0.2 million for the year ended December 31, 2019 to reflect the fair market value of our assets held for sale.

Segment Results

The following represents selected unaudited segment information:

Three Months Ended Twelve Months Ended

December 31, December 31,

2020 2019 % 2020 2019 % Change Change

Net Revenue

Television $ 50,516 $ 36,909 37 % $ 154,456 $ 149,654 3 %

Digital 104,950 20,020 424 % 143,309 68,908 108 %

Radio 16,217 13,909 17 % 46,261 55,013 (16 )%

Total $ 171,683 $ 70,838 142 % $ 344,026 $ 273,575 26 %



Cost ofRevenue - $ 85,326 $ 10,314 727 % $ 106,928 $ 36,757 191 %Digital (1)



Operating Expenses (1)

Television 22,422 21,726 3 % 80,893 84,416 (4 )%

Digital 12,228 8,091 51 % 30,631 32,261 (5 )%

Radio 11,295 14,352 (21 )% 41,789 56,700 (26 )%

Total $ 45,945 $ 44,169 4 % $ 153,313 $ 173,377 (12 )%



Corporate $ 9,296 $ 7,887 18 % $ 27,807 $ 28,067 (1 )%Expenses (1)



Foreigncurrency $ (1,725 ) $ (223 ) 674 % $ (1,052 ) $ 754 * (gain) loss



Consolidatedadjusted $ 32,646 $ 11,056 195 % $ 60,419 $ 41,209 47 %EBITDA (1)

(1)

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

Notice of Conference Call

Entravision Communications Corporation will hold a conference call to discuss its 2020 fourth quarter results on March 11, 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 13716833. 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 more than 20 countries across Latin America, Europe, and Asia. Entravision has 54 television stations and is the largest affiliate group of the Univision and UniMs television networks, and 48 Spanish-language radio stations that feature nationally recognized, award-winning talent. Our dynamic digital portfolio includes Entravision Digital, which serves SMBs in high-density U.S. Latino markets and provides cutting-edge mobile programmatic solutions and demand-side platforms that allow advertisers to execute performance campaigns using machine-learned bidding algorithms, along with Cisneros Interactive, a leader in digital advertising solutions in the Latin American and U.S. Hispanic markets representing major technology platforms. Shares of Entravision Class A Common Stock trade on The New York Stock Exchange under the ticker symbol: EVC. Learn more about all of our 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.

(1) Cost of revenue, operating expenses, corporate expenses, and consolidated adjusted EBITDA are defined on page 1.

Notice of Conference Call

Entravision Communications Corporation will hold a conference call to discuss its 2020 fourth quarter results on March 11, 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 13716833. 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 more than 20 countries across Latin America, Europe, and Asia. Entravision has 54 television stations and is the largest affiliate group of the Univision and UniMs television networks, and 48 Spanish-language radio stations that feature nationally recognized, award-winning talent. Our dynamic digital portfolio includes Entravision Digital, which serves SMBs in high-density U.S. Latino markets and provides cutting-edge mobile programmatic solutions and demand-side platforms that allow advertisers to execute performance campaigns using machine-learned bidding algorithms, along with Cisneros Interactive, a leader in digital advertising solutions in the Latin American and U.S. Hispanic markets representing major technology platforms. Shares of Entravision Class A Common Stock trade on The New York Stock Exchange under the ticker symbol: EVC. Learn more about all of our 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.

Entravision Communications Corporation

Consolidated Balance Sheets

(In thousands; unaudited)



December 31, December 31,

2020 2019

ASSETS

Current assets

Cash and cash equivalents $ 119,162 $ 33,123

Marketable securities 27,988 91,662

Restricted Cash 749 734

Trade receivables, net of allowance for doubtful 141,963 71,406 accounts

Assets held for sale 2,141 950

Prepaid expenses and other current assets 15,557 11,557

Total current assets 307,560 209,432

Property and equipment, net 72,004 79,642

Intangible assets subject to amortization, net 49,412 16,772

Intangible assets not subject to amortization 216,653 252,544

Goodwill 57,849 46,511

Operating leases right of use asset 33,525 43,837

Other assets 7,643 7,462

Total assets $ 744,646 $ 656,200





LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Current maturities of long-term debt $ 3,000 $ 3,000

Accounts payable and accrued expenses 124,150 53,931

Operating lease liabilities 7,290 9,056

Total current liabilities 134,440 65,987

Long-term debt, less current maturities, net of 210,454 213,024 unamortized debt issuance costs

Long-term operating lease liabilities 31,775 41,387

Other long-term liabilities 3,732 3,371

Deferred income taxes 54,980 44,259

Total liabilities 435,381 368,028



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 828,813 836,170

Accumulated deficit (551,786 ) (547,876 )

Accumulated other comprehensive income (loss) (1,056 ) (131 )

Total stockholders' equity 275,980 288,172

Total liabilities and stockholders' equity $ 744,646 $ 656,200

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,

2020

2019

2020

2019

Net revenue

$

171,683

$

70,838

$

344,026

$

273,575

Expenses:

Cost of revenue - digital

85,326

10,314

106,928

36,757

Direct operating expenses

31,912

30,020

104,909

119,412

Selling, general and administrative expenses

14,033

14,149

48,404

53,965

Corporate expenses

9,296

7,887

27,807

28,067

Depreciation and amortization

4,963

4,236

17,282

16,648

Change in fair value of contingent consideration

-

(4,102

)

-

(6,478

)

Impairment charge

200

654

40,035

32,097

Foreign currency (gain) loss

(1,725

)

(223

)

(1,052

)

754

Other operating (gain) loss

(1,346

)

(829

)

(6,895

)

(5,994

)

142,659

62,106

337,418

275,228

Operating income (loss)

29,024

8,732

6,608

(1,653

)

Interest expense

(1,592

)

(3,102

)

(8,265

)

(13,683

)

Interest income

118

752

1,748

3,353

Dividend income

2

171

28

918

Gain (loss) on debt extinguishment

-

(255

)

-

(255

)

Income before income taxes

27,552

6,298

119

(11,320

)

Income tax (expense) benefit

(4,701

)

1,107

(1,506

)

(8,158

)

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

22,851

7,405

(1,387

)

(19,478

)

Equity in net income (loss) of nonconsolidated affiliate

-

(45

)

-

(234

)

Net income (loss)

22,851

7,360

(1,387

)

(19,712

)

Net (income) loss attributable to redeemable noncontrolling interest

(2,523

)

-

(2,523

)

-

Net income (loss) attributable to common stockholders

$

20,328

$

7,360

$

(3,910

)

$

(19,712

)

Basic and diluted earnings per share:

Net income (loss) per share attributable to common stockholders, basic and diluted

$

0.24

$

0.09

$

(0.05

)

$

(0.23

)

Cash dividends declared per common share, basic and diluted

$

0.03

$

0.05

$

0.13

$

0.20

Weighted average common shares outstanding, basic

84,297,592

84,226,135

84,231,212

85,107,301

Weighted average common shares outstanding, diluted

85,985,630

85,449,374

84,231,212

85,107,301

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,

2020 2019 2020 2019

Net revenue $ 171,683 $ 70,838 $ 344,026 $ 273,575

Expenses:

Cost of revenue 85,326 10,314 106,928 36,757 - digital

Directoperating 31,912 30,020 104,909 119,412 expenses

Selling,general and 14,033 14,149 48,404 53,965 administrativeexpenses

Corporate 9,296 7,887 27,807 28,067 expenses

Depreciationand 4,963 4,236 17,282 16,648 amortization

Change in fairvalue of - (4,102 ) - (6,478 )contingentconsideration

Impairment 200 654 40,035 32,097 charge

Foreigncurrency (gain) (1,725 ) (223 ) (1,052 ) 754 loss

Other operating (1,346 ) (829 ) (6,895 ) (5,994 )(gain) loss

142,659 62,106 337,418 275,228

Operating 29,024 8,732 6,608 (1,653 )income (loss)

Interest (1,592 ) (3,102 ) (8,265 ) (13,683 )expense

Interest income 118 752 1,748 3,353

Dividend income 2 171 28 918

Gain (loss) ondebt - (255 ) - (255 )extinguishment

Income before 27,552 6,298 119 (11,320 )income taxes

Income tax(expense) (4,701 ) 1,107 (1,506 ) (8,158 )benefit



Income (loss)before equityin net income 22,851 7,405 (1,387 ) (19,478 )(loss) ofnonconsolidatedaffiliate

Equity in netincome (loss)of - (45 ) - (234 )nonconsolidatedaffiliate

Net income 22,851 7,360 (1,387 ) (19,712 )(loss)

Net (income)lossattributable to (2,523 ) - (2,523 ) - redeemablenoncontrollinginterest

Net income(loss)attributable to $ 20,328 $ 7,360 $ (3,910 ) $ (19,712 )commonstockholders



Basic anddiluted earnings pershare:

Net income(loss) pershareattributable to $ 0.24 $ 0.09 $ (0.05 ) $ (0.23 )commonstockholders,basic anddiluted



Cash dividendsdeclared percommon share, $ 0.03 $ 0.05 $ 0.13 $ 0.20 basic anddiluted



Weightedaverage commonshares 84,297,592 84,226,135 84,231,212 85,107,301 outstanding,basic

Weightedaverage commonshares 85,985,630 85,449,374 84,231,212 85,107,301 outstanding,diluted

Entravision Communications Corporation

Consolidated Statements of Cash Flows

(In thousands; unaudited)

Three-Month Period

Twelve-Month Period

Ended December 31,

Ended December 31,

2020

2019

2020

2019

Cash flows from operating activities:

Net income (loss)

$

22,851

$

7,360

$

(1,387

)

$

(19,712

)

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

4,963

4,236

17,282

16,648

Impairment charge

200

654

40,035

32,097

Deferred income taxes

2,519

(1,630

)

(6,225

)

5,311

Non-cash interest

158

166

649

881

Amortization of syndication contracts

121

131

504

505

Payments on syndication contracts

(133

)

(124

)

(458

)

(543

)

Equity in net (income) loss of nonconsolidated affiliate

-

45

-

234

Non-cash stock-based compensation

2,717

1,923

5,125

4,377

(Gain) loss on disposal of property and equipment

36

-

(731

)

158

(Gain) loss on debt extinguishment

-

255

-

255

Changes in assets and liabilities:

(Increase) decrease in trade receivables, net

(41,424

)

(2,093

)

(27,139

)

8,610

(Increase) decrease in prepaid expenses and other current assets

6,110

2,946

12,823

2,102

Increase (decrease) in accounts payable, accrued expenses and other liabilities

39,614

(5,816

)

22,971

(19,384

)

Net cash provided by operating activities

37,732

8,053

63,449

31,539

Cash flows from investing activities:

Proceeds from sale of property and equipment and intangibles

-

-

5,089

-

Purchases of property and equipment

(1,319

)

(4,101

)

(9,060

)

(25,283

)

Purchases of intangibles

-

(2,300

)

(158

)

(2,300

)

Purchase of a businesses, net of cash acquired

(21,261

)

-

(21,261

)

-

Purchases of marketable securities

-

-

-

(1,400

)

Proceeds from marketable securities

25,000

15,766

63,480

43,647

Purchases of investments

-

-

-

(300

)

Deposits on acquisition

-

147

-

-

Net cash provided by (used in) investing activities

2,420

9,512

38,090

14,364

Cash flows from financing activities:

Tax payments related to shares withheld for share-based compensation plans

(1,411

)

(915

)

(1,426

)

(1,688

)

Payments on long-term debt

(750

)

(25,750

)

(3,000

)

(28,000

)

Dividends paid

(2,103

)

(4,195

)

(10,531

)

(16,962

)

Repurchase of Class A common stock

-

(2,208

)

(525

)

(12,565

)

Payments of capitalized debt offering and issuance costs

-

-

-

(225

)

Net cash used in financing activities

(4,264

)

(33,068

)

(15,482

)

(59,440

)

Effect of exchange rates on cash, cash equivalents and restricted cash

4

(79

)

(3

)

(71

)

Net increase (decrease) in cash, cash equivalents and restricted cash

35,892

(15,582

)

86,054

(13,608

)

Cash, cash equivalents and restricted cash:

Beginning

84,019

49,439

33,857

47,465

Ending

$

119,911

$

33,857

$

119,911

$

33,857

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:

Entravision Communications Corporation

Consolidated Statements of Cash Flows

(In thousands; unaudited)



Three-Month Period Twelve-Month Period

Ended December 31, Ended December 31,

2020 2019 2020 2019

Cash flows from operating activities:

Net income (loss) $ 22,851 $ 7,360 $ (1,387 ) $ (19,712 )

Adjustments toreconcile net income to net cash provided byoperating activities:

Depreciation and 4,963 4,236 17,282 16,648 amortization

Impairment charge 200 654 40,035 32,097

Deferred income taxes 2,519 (1,630 ) (6,225 ) 5,311

Non-cash interest 158 166 649 881

Amortization of 121 131 504 505 syndication contracts

Payments on syndication (133 ) (124 ) (458 ) (543 )contracts

Equity in net (income)loss of nonconsolidated - 45 - 234 affiliate

Non-cash stock-based 2,717 1,923 5,125 4,377 compensation

(Gain) loss on disposalof property and 36 - (731 ) 158 equipment

(Gain) loss on debt - 255 - 255 extinguishment

Changes in assets and liabilities:

(Increase) decrease in (41,424 ) (2,093 ) (27,139 ) 8,610 trade receivables, net

(Increase) decrease inprepaid expenses and 6,110 2,946 12,823 2,102 other current assets

Increase (decrease) inaccounts payable, 39,614 (5,816 ) 22,971 (19,384 )accrued expenses andother liabilities

Net cash provided by 37,732 8,053 63,449 31,539 operating activities

Cash flows from investing activities:

Proceeds from sale ofproperty and equipment - - 5,089 - and intangibles

Purchases of property (1,319 ) (4,101 ) (9,060 ) (25,283 )and equipment

Purchases of - (2,300 ) (158 ) (2,300 )intangibles

Purchase of abusinesses, net of cash (21,261 ) - (21,261 ) - acquired

Purchases of marketable - - - (1,400 )securities

Proceeds from 25,000 15,766 63,480 43,647 marketable securities

Purchases of - - - (300 )investments

Deposits on acquisition - 147 - -

Net cash provided by(used in) investing 2,420 9,512 38,090 14,364 activities

Cash flows from financing activities:

Tax payments related toshares withheld for (1,411 ) (915 ) (1,426 ) (1,688 )share-basedcompensation plans

Payments on long-term (750 ) (25,750 ) (3,000 ) (28,000 )debt

Dividends paid (2,103 ) (4,195 ) (10,531 ) (16,962 )

Repurchase of Class A - (2,208 ) (525 ) (12,565 )common stock

Payments of capitalizeddebt offering and - - - (225 )issuance costs

Net cash used in (4,264 ) (33,068 ) (15,482 ) (59,440 )financing activities

Effect of exchangerates on cash, cash 4 (79 ) (3 ) (71 )equivalents andrestricted cash

Net increase (decrease)in cash, cash 35,892 (15,582 ) 86,054 (13,608 )equivalents andrestricted cash

Cash, cash equivalents and restricted cash:

Beginning 84,019 49,439 33,857 47,465

Ending $ 119,911 $ 33,857 $ 119,911 $ 33,857

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 Twelve-Month Period

Ended December 31, Ended December 31,

2020 2019 2020 2019

Consolidated adjusted $ 32,646 $ 11,056 $ 60,419 $ 41,209 EBITDA (1)

EBITDA attributable toredeemable noncontrolling 3,436 - 3,436 - interest

Interest expense (1,592 ) (3,102 ) (8,265 ) (13,683 )

Interest income 118 752 1,748 3,353

Gain (loss) on debt - (255 ) - (255 )extinguishment

Income tax (expense) (4,701 ) 1,107 (1,506 ) (8,158 )benefit

Amortization of (121 ) (131 ) (504 ) (505 )syndication contracts

Payments on syndication 133 124 458 543 contracts

Non-cash stock-basedcompensation included in (865 ) (408 ) (1,247 ) (732 )direct operating expenses

Non-cash stock-basedcompensation included in (1,852 ) (1,515 ) (3,878 ) (3,645 )corporate expenses

Depreciation and (4,963 ) (4,236 ) (17,282 ) (16,648 )amortization

Change in fair value of - 4,102 - 6,478 contingent consideration

Non-recurring severance (536 ) (435 ) (1,654 ) (2,250 )charge

Dividend income 2 171 28 918

Other income (loss) 1,346 829 6,895 5,994

Impairment charge (200 ) (654 ) (40,035 ) (32,097 )

Equity in net income(loss) of nonconsolidated - (45 ) - (234 )affiliates

Net (income) lossattributable to (2,523 ) - (2,523 ) - redeemable noncontrollinginterest

Net income (loss)attributable to common 20,328 7,360 (3,910 ) (19,712 )stockholders



Depreciation and 4,963 4,236 17,282 16,648 amortization

Impairment charge 200 654 40,035 32,097

Deferred income taxes 2,519 (1,630 ) (6,225 ) 5,311

Amortization of debt 158 166 649 881 issuance costs

Amortization of 121 131 504 505 syndication contracts

Payments on syndication (133 ) (124 ) (458 ) (543 )contracts

Equity in net (income)loss of nonconsolidated - 45 - 234 affiliate

Non-cash stock-based 2,717 1,923 5,125 4,377 compensation

(Gain) loss on disposal 36 - (731 ) 158 of property and equipment

(Gain) loss on debt - 255 - 255 extinguishment

Net (income) lossattributable to 2,523 - 2,523 - redeemable noncontrollinginterest

Changes in assets and liabilities:

(Increase) decrease in (41,424 ) (2,093 ) (27,139 ) 8,610 accounts receivable

(Increase) decrease inprepaid expenses and 6,110 2,946 12,823 2,102 other assets

Increase (decrease) inaccounts payable, accrued 39,614 (5,816 ) 22,971 (19,384 )expenses and otherliabilities

Net cash provided by(used in) operating $ 37,732 $ 8,053 $ 63,449 $ 31,539 activities

(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:

(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 Twelve-Month Period

Ended December 31, Ended December 31,

2020 2019 2020 2019

Consolidated adjusted $ 32,646 $ 11,056 $ 60,419 $ 41,209 EBITDA (1)

Net, cash interest (1,316 ) (2,184 ) (5,868 ) (9,449 )expense (1)

Dividend income 2 171 28 918

Cash paid for income (2,182 ) (523 ) (7,731 ) (2,847 )taxes

Capital expenditures (2) (1,319 ) (4,101 ) (9,060 ) (25,283 )

FCC reimbursement 1,346 829 6,895 5,994

Non-recurring cash (536 ) (435 ) (1,654 ) (2,250 )severance charge

Free cash flow (1) 28,641 4,813 43,029 8,292



Capital expenditures (2) 1,319 4,101 9,060 25,283

EBITDA attributable toredeemable noncontrolling 3,436 - 3,436 - interest

Change in fair value of - 4,102 - 6,478 contingent consideration

(Gain) loss on disposal 36 - (731 ) 158 of property and equipment

Changes in assets and liabilities:

(Increase) decrease in (41,424 ) (2,093 ) (27,139 ) 8,610 accounts receivable

(Increase) decrease inprepaid expenses and 6,110 2,946 12,823 2,102 other assets

Increase (decrease) inaccounts payable, accrued 39,614 (5,816 ) 22,971 (19,384 )expenses and otherliabilities

Cash Flows From Operating $ 37,732 $ 8,053 $ 63,449 $ 31,539 Activities

(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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210311005960/en/

CONTACT: Christopher T. Young Chief Financial Officer Entravision Communications Corporation 310-447-3870 Kimberly Esterkin ADDO Investor Relations 310-829-5400 evc@addoir.com