Business Wire | May 6, 2021 04:10PM EDT

Entravision Communications Corporation Reports First Quarter 2021 Results

May 06, 2021

SANTA MONICA, Calif.--(BUSINESS WIRE)--May 06, 2021--Entravision Communications Corporation (NYSE: EVC), a leading global media and marketing technology company, today announced financial results for the three-month period ended March 31, 2021.

First Quarter 2021 Highlights

* Net revenue up 132% over the same prior-year period * Net income attributable to common stockholders of $5.4 million, compared to a loss of $35.6 million in the prior year * Consolidated Adjusted EBITDA up 47% over the same prior-year period * Operating cash flow up 95% over the same prior-year period * Free cash flow up 149% over the same prior-year period * Quarterly cash dividend of $0.025 per share

"We are very pleased with our results for the first quarter 2021, with core television and audio performing well, along with our digital segment that continues to see solid growth," said Walter F. Ulloa, Chairman and Chief Executive Officer. "We are particularly pleased with the progress of our recent acquisition of Cisneros Interactive through which we significantly expanded Entravision's digital offerings to customers, including representing some of the strongest global audience and ad tech platforms. As we grew our top line, we also remained cost conscious and continue to operate a much more efficient business than even prior to the onset of the COVID-19 pandemic. Overall, we are optimistic for gradual, but continued progress throughout the balance of the year as macroeconomic conditions progress."

Quarterly Cash Dividend

The Company announced today that its Board of Directors approved a quarterly cash dividend to shareholders of $0.025 per share on the Company's Class A, Class B and Class U common stock, in an aggregate amount of approximately $2.1 million. The quarterly dividend will be payable on June 30, 2021 to shareholders of record as of the close of business on June 16, 2021, and the common stock will trade ex-dividend on June 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 9.

Unaudited Financial Highlights

Three-Month Period

Ended March 31,

2021 2020 % Change

Net revenue $ 148,880 $ 64,249 132 %

Cost of revenue - digital (1) 84,756 7,347 *

Operating expenses (2) 40,414 40,270 0 %

Corporate expenses (3) 7,158 6,840 5 %

Foreign currency (gain) loss 586 1,508 (61 )%



Consolidated adjusted EBITDA (4) 14,195 9,679 47 %



Free cash flow (5) $ 13,029 $ 5,229 149 %



Net income (loss) $ 7,002 $ (35,592 ) *

Net (income) loss attributable to $ (1,573 ) $ - * redeemable noncontrolling interest

Net income (loss) attributable to $ 5,429 $ (35,592 ) * common stockholders



Net income (loss) per shareattributable to common stockholders, $ 0.06 $ (0.42 ) * basic and diluted



Weighted average common shares 85,041,628 84,317,767 outstanding, basic

Weighted average common shares 86,986,581 84,317,767 outstanding, diluted

(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 March 31, 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 March 31, 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

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

Operating expenses includes direct operating and selling, general and(2) 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 March 31, 2021 and 2020, respectively.

Corporate expenses include $0.8 million and $0.7 million of non-cash(3) stock-based compensation for the three-month periods ended March 31, 2021 and 2020, 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.

Unaudited Financial Results

Three-Month Period

Ended March 31,

2021 2020 % Change

Net revenue $ 148,880 $ 64,249 132 %

Cost of revenue - digital (1) 84,756 7,347 *

Operating expenses (1) 40,414 40,270 0 %

Corporate expenses (1) 7,158 6,840 5 %

Depreciation and amortization 5,184 4,512 15 %

Impairment charge 1,326 39,835 (97 )%

Foreign currency (gain) loss 586 1,508 (61 )%

Other operating (gain) loss (1,913 ) (836 ) 129 %



Operating income (loss) 11,369 (35,227 ) *

Interest expense, net (1,577 ) (2,056 ) (23 )%

Dividend income 2 23 (91 )%



Income (loss) before income taxes 9,794 (37,260 ) *

Income tax benefit (expense) (2,792 ) 1,668 *



Net income (loss) 7,002 (35,592 ) *

Net (income) loss attributable to redeemable (1,573 ) - * noncontrolling interest

Net income (loss) attributable to common $ 5,429 $ (35,592 ) * stockholders

(1)

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

Net revenue in the first quarter of 2021 totaled $148.9 million, up 132% from $64.2 million in the prior-year period. Of the overall increase, approximately $88.2 million was attributable to our digital segment and was primarily due to our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, 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. The overall increase in net revenue was partially offset by a decrease of approximately $3.1 million attributable to our television segment due to a decrease in political revenue, partially offset by increases in revenue from spectrum usage rights and local and national advertising revenue. Additionally, the overall increase in net revenue was partially offset by a decrease of approximately $0.4 million attributable to our radio segment.

Cost of revenue in the first quarter of 2021 totaled $84.8 million compared to $7.3 million in the prior-year period. The increase was primarily due to increased costs of revenue associated with the increase in net revenue due to our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020.

Operating expenses in the first quarter of 2021 totaled $40.4 million, up slightly from $40.3 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, partially offset by decreases in salary expense associated with furloughs and layoffs that occurred in 2020.

Corporate expenses in the first quarter of 2021 totaled $7.2 million, up 5% from $6.8 million in the prior-year period. The increase was primarily due to an increase in salaries and audit fees.

Balance Sheet & Related Metrics

Cash and marketable securities as of March 31, 2021 totaled approximately $166 million. Total debt was $214.5 million. Net of $75 million of cash and marketable securities, total leverage as defined in the Company's credit agreement was 2.1 times at the end of the first quarter 2021. Net of total accessible cash and marketable securities, total leverage was 1.0 times.

Unaudited Segment Results

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

Net revenue in the first quarter of 2021 totaled $148.9 million, up 132% from $64.2 million in the prior-year period. Of the overall increase, approximately $88.2 million was attributable to our digital segment and was primarily due to our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, 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. The overall increase in net revenue was partially offset by a decrease of approximately $3.1 million attributable to our television segment due to a decrease in political revenue, partially offset by increases in revenue from spectrum usage rights and local and national advertising revenue. Additionally, the overall increase in net revenue was partially offset by a decrease of approximately $0.4 million attributable to our radio segment.

Cost of revenue in the first quarter of 2021 totaled $84.8 million compared to $7.3 million in the prior-year period. The increase was primarily due to increased costs of revenue associated with the increase in net revenue due to our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020.

Operating expenses in the first quarter of 2021 totaled $40.4 million, up slightly from $40.3 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, partially offset by decreases in salary expense associated with furloughs and layoffs that occurred in 2020.

Corporate expenses in the first quarter of 2021 totaled $7.2 million, up 5% from $6.8 million in the prior-year period. The increase was primarily due to an increase in salaries and audit fees.

Balance Sheet & Related Metrics

Cash and marketable securities as of March 31, 2021 totaled approximately $166 million. Total debt was $214.5 million. Net of $75 million of cash and marketable securities, total leverage as defined in the Company's credit agreement was 2.1 times at the end of the first quarter 2021. Net of total accessible cash and marketable securities, total leverage was 1.0 times.

Unaudited Segment Results

Three-Month Period

Ended March 31,

2021 2020 % Change

Net Revenue

Television $ 36,091 $ 39,199 (8 )%

Digital 101,482 13,331 661 %

Radio 11,307 11,719 (4 )%

Total $ 148,880 $ 64,249 132 %



Cost of Revenue - digital (1)

Digital $ 84,756 $ 7,347 *



Operating Expenses (1)

Television 19,884 21,757 (9 )%

Digital 10,850 6,864 58 %

Radio 9,680 11,649 (17 )%

Total $ 40,414 $ 40,270 0 %



Corporate Expenses (1) $ 7,158 $ 6,840 5 %



Consolidated adjusted EBITDA (1) $ 14,195 $ 9,679 47 %

(1)

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

Notice of Conference Call

Entravision Communications Corporation will hold a conference call to discuss its first quarter 2021 results on Thursday, May 6, 2021 at 5 p.m. Eastern Time. To access the conference call, please dial (877) 317-6789 (U.S.) or (412) 317-6789 (Int'l) ten minutes prior to the start time. 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 2.

Notice of Conference Call

Entravision Communications Corporation will hold a conference call to discuss its first quarter 2021 results on Thursday, May 6, 2021 at 5 p.m. Eastern Time. To access the conference call, please dial (877) 317-6789 (U.S.) or (412) 317-6789 (Int'l) ten minutes prior to the start time. 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)



March 31, December 31,

2021 2020

ASSETS

Current assets

Cash and cash equivalents $ 149,987 $ 119,162

Marketable securities 15,745 27,988

Restricted cash 749 749

Trade receivables, net of allowance for doubtful 132,149 142,004 accounts

Assets held for sale 6,138 2,141

Prepaid expenses and other current assets 18,418 18,021

Total current assets 323,186 310,065

Property and equipment, net 69,737 72,004

Intangible assets subject to amortization, net 47,587 49,412

Intangible assets not subject to amortization 211,753 216,653

Goodwill 58,043 58,043

Operating leases right of use asset 34,276 33,525

Other assets 7,586 7,643

Total assets $ 752,168 $ 747,345





LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

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

Accounts payable and accrued expenses 124,369 126,849

Operating lease liabilities 7,510 7,290

Total current liabilities 134,879 137,139

Long-term debt, less current maturities, net of 209,811 210,454 unamortized debt issuance costs

Long-term operating lease liabilities 32,015 31,775

Other long-term liabilities 3,616 3,732

Deferred income taxes 56,306 54,980

Total liabilities 436,627 438,080



Redeemable noncontrolling interest 34,858 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 827,749 828,813

Accumulated deficit (546,357 ) (551,786 )

Accumulated other comprehensive income (loss) (718 ) (1,056 )

Total stockholders' equity 280,683 275,980

Total liabilities and stockholders' equity $ 752,168 $ 747,345

Entravision Communications Corporation

Consolidated Statements of Operations

(In thousands, except share and per share data)

(Unaudited)

Three-Month Period

Ended March 31,

2021

2020

Net revenue

$

148,880

$

64,249

Expenses:

Cost of revenue - digital

84,756

7,347

Direct operating expenses

26,561

26,679

Selling, general and administrative expenses

13,853

13,591

Corporate expenses

7,158

6,840

Depreciation and amortization

5,184

4,512

Impairment charge

1,326

39,835

Foreign currency (gain) loss

586

1,508

Other operating (gain) loss

(1,913

)

(836

)

137,511

99,476

Operating income (loss)

11,369

(35,227

)

Interest expense

(1,717

)

(2,680

)

Interest income

140

624

Dividend income

2

23

Income (loss) before income taxes

9,794

(37,260

)

Income tax benefit (expense)

(2,792

)

1,668

Net income (loss)

7,002

(35,592

)

Net (income) loss attributable to redeemable noncontrolling interest

(1,573

)

-

Net income (loss) attributable to common stockholders

$

5,429

$

(35,592

)

Basic and diluted earnings per share:

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

$

0.06

$

(0.42

)

Cash dividends declared per common share, basic and diluted

$

0.03

$

0.05

Weighted average common shares outstanding, basic

85,041,628

84,317,767

Weighted average common shares outstanding, diluted

86,986,581

84,317,767

Entravision Communications Corporation

Consolidated Statements of Operations

(In thousands, except share and per share data)

(Unaudited)



Three-Month Period

Ended March 31,

2021 2020

Net revenue $ 148,880 $ 64,249



Expenses:

Cost of revenue - digital 84,756 7,347

Direct operating expenses 26,561 26,679

Selling, general and administrative expenses 13,853 13,591

Corporate expenses 7,158 6,840

Depreciation and amortization 5,184 4,512

Impairment charge 1,326 39,835

Foreign currency (gain) loss 586 1,508

Other operating (gain) loss (1,913 ) (836 )

137,511 99,476

Operating income (loss) 11,369 (35,227 )

Interest expense (1,717 ) (2,680 )

Interest income 140 624

Dividend income 2 23

Income (loss) before income taxes 9,794 (37,260 )

Income tax benefit (expense) (2,792 ) 1,668



Net income (loss) 7,002 (35,592 )

Net (income) loss attributable to redeemable (1,573 ) - noncontrolling interest

Net income (loss) attributable to common $ 5,429 $ (35,592 )stockholders



Basic and diluted earnings per share:

Net income (loss) per share attributable to $ 0.06 $ (0.42 )common stockholders, basic and diluted

Cash dividends declared per common share, $ 0.03 $ 0.05 basic and diluted



Weighted average common shares outstanding, 85,041,628 84,317,767 basic

Weighted average common shares outstanding, 86,986,581 84,317,767 diluted

Entravision Communications Corporation

Consolidated Statements of Cash Flows

(In thousands; unaudited)

Three-Month Period

Ended March 31,

2021

2020

Cash flows from operating activities:

Net income (loss)

$

7,002

$

(35,592

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization

5,184

4,512

Impairment charge

1,326

39,835

Deferred income taxes

2,987

(1,813

)

Non-cash interest

139

169

Amortization of syndication contracts

119

130

Payments on syndication contracts

(124

)

(130

)

Non-cash stock-based compensation

1,071

789

Changes in assets and liabilities:

(Increase) decrease in accounts receivable

9,927

7,482

(Increase) decrease in prepaid expenses and other assets

1,177

1,026

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

(5,356

)

(4,394

)

Net cash provided by operating activities

23,452

12,014

Cash flows from investing activities:

Purchases of property and equipment

(1,838

)

(2,671

)

Purchases of intangible assets

-

(155

)

Proceeds from marketable securities

12,120

16,617

Net cash provided by (used in) investing activities

10,282

13,791

Cash flows from financing activities:

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

(9

)

-

Payments on long-term debt

(750

)

(750

)

Dividends paid

(2,126

)

(4,218

)

Repurchase of Class A common stock

-

(525

)

Net cash used in financing activities

(2,885

)

(5,493

)

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

(24

)

77

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

30,825

20,389

Cash, cash equivalents and restricted cash:

Beginning

119,911

33,857

Ending

$

150,736

$

54,246

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

Ended March 31,

2021 2020

Cash flows from operating activities:

Net income (loss) $ 7,002 $ (35,592 )

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization 5,184 4,512

Impairment charge 1,326 39,835

Deferred income taxes 2,987 (1,813 )

Non-cash interest 139 169

Amortization of syndication contracts 119 130

Payments on syndication contracts (124 ) (130 )

Non-cash stock-based compensation 1,071 789

Changes in assets and liabilities:

(Increase) decrease in accounts receivable 9,927 7,482

(Increase) decrease in prepaid expenses and other 1,177 1,026 assets

Increase (decrease) in accounts payable, accrued (5,356 ) (4,394 )expenses and other liabilities

Net cash provided by operating activities 23,452 12,014

Cash flows from investing activities:

Purchases of property and equipment (1,838 ) (2,671 )

Purchases of intangible assets - (155 )

Proceeds from marketable securities 12,120 16,617

Net cash provided by (used in) investing activities 10,282 13,791

Cash flows from financing activities:

Tax payments related to shares withheld for (9 ) - share-based compensation plans

Payments on long-term debt (750 ) (750 )

Dividends paid (2,126 ) (4,218 )

Repurchase of Class A common stock - (525 )

Net cash used in financing activities (2,885 ) (5,493 )

Effect of exchange rates on cash, cash equivalents (24 ) 77 and restricted cash

Net increase (decrease) in cash, cash equivalents 30,825 20,389 and restricted cash

Cash, cash equivalents and restricted cash:

Beginning 119,911 33,857

Ending $ 150,736 $ 54,246

Entravision Communications Corporation

Reconciliation of Consolidated Adjusted EBITDA to Cash Flows From Operating Activities

(In thousands; unaudited)

The most directly comparable GAAP financial measure is operating cash flow. A reconciliation of this non-GAAP measure to cash flows from operating activities for each of the periods presented is as follows:

Three-Month Period

Ended March 31,

2021 2020



Consolidated adjusted EBITDA (1) $ 14,195 $ 9,679

EBITDA attributable to redeemable noncontrolling 2,837 - interest

Interest expense (1,717 ) (2,680 )

Interest income 140 624

Dividend income 2 23

Income tax expense (2,792 ) 1,668

Amortization of syndication contracts (119 ) (130 )

Payments on syndication contracts 124 130

Non-cash stock-based compensation included in direct (316 ) (131 )operating expenses

Non-cash stock-based compensation included in corporate (755 ) (658 )expenses

Depreciation and amortization (5,184 ) (4,512 )

Impairment charge (1,326 ) (39,835 )

Non-recurring cash severance charge - (606 )

Other operating gain (loss) 1,913 836

Net (income) loss attributable to redeemable (1,573 ) - noncontrolling interest

Net income (loss) attributable to common stockholders 5,429 (35,592 )



Depreciation and amortization 5,184 4,512

Impairment charge 1,326 39,835

Deferred income taxes 2,987 (1,813 )

Non-cash interest 139 169

Amortization of syndication contracts 119 130

Payments on syndication contracts (124 ) (130 )

Non-cash stock-based compensation 1,071 789

Net income (loss) attributable to redeemable 1,573 - noncontrolling interest

Changes in assets and liabilities:

(Increase) decrease in accounts receivable 9,927 7,482

(Increase) decrease in prepaid expenses and other 1,177 1,026 assets

Increase (decrease) in accounts payable, accrued (5,356 ) (4,394 )expenses and other liabilities

Cash flows from operating activities 23,452 12,014

(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)

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 2.

Entravision Communications Corporation

Reconciliation of Free Cash Flow to Cash Flows From Operating Activities

(In thousands; unaudited)

The most directly comparable GAAP financial measure is operating cash flow. A reconciliation of this non-GAAP measure to cash flows from operating activities for each of the periods presented is as follows:

Three-Month Period

Ended March 31,

2021 2020

Consolidated adjusted EBITDA (1) $ 14,195 $ 9,679

Net interest expense (1) (1,438 ) (1,887 )

Dividend income 2 23

Cash paid for income taxes 195 (145 )

Capital expenditures (2) (1,838 ) (2,671 )

Non-recurring cash severance charge - (606 )

Other operating gain (loss) 1,913 836

Free cash flow (1) 13,029 5,229



Capital expenditures (2) 1,838 2,671

EBITDA attributable to redeemable noncontrolling 2,837 - interest

Changes in assets and liabilities:

(Increase) decrease in accounts receivable 9,927 7,482

(Increase) decrease in prepaid expenses and other assets 1,177 1,026

Increase (decrease) in accounts payable, accrued (5,356 ) (4,394 )expenses and other liabilities

Cash Flows From Operating Activities $ 23,452 $ 12,014

(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.

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