Business Wire | Aug 5, 2021 04:10PM EDT

Entravision Communications Corporation Reports Second Quarter 2021 Results

Aug. 05, 2021

SANTA MONICA, Calif.--(BUSINESS WIRE)--Aug. 05, 2021--Entravision Communications Corporation (NYSE: EVC), a leading global media, marketing and technology company, today announced financial results for the three- and six-month periods ended June 30, 2021.

Second Quarter 2021 Highlights

* Net revenue up 295% over the prior-year period * Net income attributable to common stockholders up 236% over the prior-year period * Consolidated Adjusted EBITDA up 932% over the prior-year period * Operating cash flow up 181% over the prior-year period * Free cash flow of $12.4 million compared to a loss of $1.4 million in the prior-year period * Quarterly cash dividend of $0.025 per share

"Entravision had a strong second quarter of 2021 and an even stronger first half of the year. Net revenues for the second quarter improved 295% as compared to the prior-year period, while Adjusted EBITDA increased 932% year-over-year," said Walter F. Ulloa, Chairman and Chief Executive Officer. "Growth in the quarter was largely driven by our digital business, which is now our largest segment, currently at 73% of consolidated revenues. Our core television and audio businesses also saw sequential and year-over-year revenue improvements, bolstering our overall performance."

Mr. Ulloa continued, "Our digital segment continues to represent a significant part of the growth of our business. Right after the end of the second quarter we acquired MediaDonuts, a company engaged in the sale and marketing of digital advertising in Southeast Asia. Through the acquisition of MediaDonuts, along with our acquisition of a majority interest in Cisneros Interactive during the fourth quarter of 2020, we have now added two digital powerhouses to our platform whose combined leadership, sales, operations and geographic reach further propel our core digital offerings and position us to partner with the world's leading technology and social platforms."

Quarterly Cash Dividend

The Company also announced today that its Board of Directors approved a quarterly cash dividend to shareholders of $0.025 per share on the Company's Class A, Class B and Class U common stock, in an aggregate amount of approximately $2.1 million. The quarterly dividend will be payable on September 30, 2021 to shareholders of record as of the close of business on September 15, 2021, and the common stock will trade ex-dividend on September 14, 2021. The Company currently anticipates that future cash dividends will be paid on a quarterly basis; however, any decision to pay future cash dividends will be subject to approval by the Board.

Non-GAAP Financial Measures

This press release contains certain non-GAAP financial measures as defined by SEC Regulation G. The GAAP financial measure most directly comparable to each of these non-GAAP financial measures, and a table reconciling each of these non-GAAP financial measures to its most directly comparable GAAP financial measure is included beginning on page 10.

Unaudited Financial Highlights

Three-Month Period Six-Month Period

Ended June 30, Ended June 30,

2021 2020 % 2021 2020 % Change Change

Net revenue $ 178,410 $ 45,116 295 % $ 327,290 $ 109,365 199 %

Cost ofrevenue - 109,030 6,447 * 193,786 13,794 * digital (1)

Operating 41,442 33,037 25 % 81,856 73,307 12 %expenses (2)

Corporate 7,345 5,384 36 % 14,503 12,224 19 %expenses (3)

Foreign )currency (309 ) (155 ) 99 % 277 1,353 (80 %(gain) loss



Consolidatedadjusted 17,787 1,724 932 % 31,982 11,402 180 %EBITDA (4)



Free cash flow $ 12,420 $ (1,408 ) * $ 25,449 $ 3,821 566 %(5)



Net income $ 10,476 $ 2,338 348 % $ 17,478 $ (33,254 ) * (loss)

Net (income)lossattributable $ (2,612 ) $ - * $ (4,185 ) $ - * to redeemablenoncontrollinginterest

Net income(loss)attributable $ 7,864 $ 2,338 236 % $ 13,293 $ (33,254 ) * to commonstockholders



Net income(loss) pershareattributable $ 0.09 $ 0.03 200 % $ 0.16 $ (0.39 ) * to commonstockholders,basic

Net income(loss) pershareattributable $ 0.09 $ 0.03 200 % $ 0.15 $ (0.39 ) * to commonstockholders,diluted

Weightedaverage commonshares 85,188,182 84,123,530 85,115,310 84,220,649 outstanding,basic

Weightedaverage commonshares 87,777,039 84,669,250 87,382,215 84,220,649 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 June 30, 2021 and 2020, respectively, and $0.6 million and $0.2 million of non-cash stock-based compensation for the six-month periods ended June 30, 2021 and 2020, respectively.

(3)

Corporate expenses include $0.8 million and $0.7 million of non-cash stock-based compensation for the three-month periods ended June 30, 2021 and 2020, respectively, and $1.6 million and $1.4 million of non-cash stock-based compensation for the six-month periods ended June 30, 2021 and 2020, respectively.

(4)

Consolidated adjusted EBITDA means net income (loss) plus gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation included in operating and corporate expenses, net interest expense, other operating gain (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from the Federal Communications Commission, or FCC, spectrum incentive auction less related expenses, expenses associated with investments, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings. We use the term consolidated adjusted EBITDA because that measure is defined in the agreement governing our current credit facility ("the 2017 Credit Facility") and does not include gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation, net interest expense, other income (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from FCC spectrum incentive auction less related expenses, expenses associated with investments, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings.

(5)

Free cash flow is defined as consolidated adjusted EBITDA less cash paid for income taxes, net interest expense, capital expenditures and non-recurring cash expenses plus dividend income, and other operating gain (loss). Net interest expense is defined as interest expense, less non-cash interest expense relating to amortization of debt finance costs, and less interest income.

Unaudited Financial Results

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 administrative expenses. Included in operating expenses are $0.3 million and(2) $0.1 million of non-cash stock-based compensation for the three-month periods ended June 30, 2021 and 2020, respectively, and $0.6 million and $0.2 million of non-cash stock-based compensation for the six-month periods ended June 30, 2021 and 2020, respectively.

Corporate expenses include $0.8 million and $0.7 million of non-cash stock-based compensation for the three-month periods ended June 30, 2021 and(3) 2020, respectively, and $1.6 million and $1.4 million of non-cash stock-based compensation for the six-month periods ended June 30, 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(4) 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.

Free cash flow is defined as consolidated adjusted EBITDA less cash paid for income taxes, net interest expense, capital expenditures and non-recurring(5) 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 June 30,

2021 2020 % Change

Net revenue $ 178,410 $ 45,116 295 %

Cost of revenue - digital (1) 109,030 6,447 *

Operating expenses (1) 41,442 33,037 25 %

Corporate expenses (1) 7,345 5,384 36 %

Depreciation and amortization 5,074 3,873 31 %

Impairment charge 112 - *

Foreign currency (gain) loss (309 ) (155 ) 99 %

Other operating (gain) loss (523 ) (2,030 ) (74 ) %



Operating income (loss) 16,239 (1,440 ) *

Interest expense, net (1,773 ) (1,485 ) 19 %

Dividend income 2 - *



Income (loss) before income taxes 14,468 (2,925 ) *

Income tax benefit (expense) (3,992 ) 5,263 *



Net income (loss) 10,476 2,338 348 %

Net (income) loss attributable to redeemable (2,612 ) - * noncontrolling interest

Net income (loss) attributable to common $ 7,864 $ 2,338 236 %stockholders

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

Net revenue in the second quarter of 2021 totaled $178.4 million, up 295% from $45.1 million in the prior-year period. Of the overall increase, approximately $118.8 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. In addition, of the overall increase, approximately $7.1 million was attributable to our television segment, primarily due to increases in local and national advertising revenue, partially offset by decreases in political revenue and revenue from spectrum usage rights. Additionally, of the overall increase, approximately $7.3 million was attributable to our radio segment primarily due to increases in local and national advertising revenue, partially offset by a decrease in political revenue.

Cost of revenue in the second quarter of 2021 totaled $109.0 million compared to $6.4 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 second quarter of 2021 totaled $41.4 million, up 25% from $33.0 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, and due to an increase in expenses associated with the increase in advertising revenue, partially offset by decreases in bad debt and salary expense associated with furloughs and layoffs that occurred in 2020.

Corporate expenses in the second quarter of 2021 totaled $7.3 million, up 36% from $5.4 million in the prior-year period. The increase was primarily due to an increase in salaries, audit fees and financial due diligence fees.

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

Net revenue in the second quarter of 2021 totaled $178.4 million, up 295% from $45.1 million in the prior-year period. Of the overall increase, approximately $118.8 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. In addition, of the overall increase, approximately $7.1 million was attributable to our television segment, primarily due to increases in local and national advertising revenue, partially offset by decreases in political revenue and revenue from spectrum usage rights. Additionally, of the overall increase, approximately $7.3 million was attributable to our radio segment primarily due to increases in local and national advertising revenue, partially offset by a decrease in political revenue.

Cost of revenue in the second quarter of 2021 totaled $109.0 million compared to $6.4 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 second quarter of 2021 totaled $41.4 million, up 25% from $33.0 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, and due to an increase in expenses associated with the increase in advertising revenue, partially offset by decreases in bad debt and salary expense associated with furloughs and layoffs that occurred in 2020.

Corporate expenses in the second quarter of 2021 totaled $7.3 million, up 36% from $5.4 million in the prior-year period. The increase was primarily due to an increase in salaries, audit fees and financial due diligence fees.

Six-Month Period

Ended June 30,

2021 2020 % Change

Net revenue $ 327,290 $ 109,365 199 %

Cost of revenue - digital (1) 193,786 13,794 *

Operating expenses (1) 81,856 73,307 12 %

Corporate expenses (1) 14,503 12,224 19 %

Depreciation and amortization 10,258 8,385 22 %

Impairment charge 1,438 39,835 (96 ) %

Foreign currency (gain) loss 277 1,353 (80 ) %

Other operating (gain) loss (2,436 ) (2,866 ) (15 ) %



Operating income (loss) 27,608 (36,667 ) *

Interest expense, net (3,350 ) (3,542 ) (5 ) %

Dividend income 4 24 (83 ) %



Income (loss) before income taxes 24,262 (40,185 ) *

Income tax benefit (expense) (6,784 ) 6,931 *



Net income (loss) 17,478 (33,254 ) *

Net (income) loss attributable to (4,185 ) - * redeemable noncontrolling interest

Net income (loss) attributable to common $ 13,293 $ (33,254 ) * stockholders

(1)

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

Net revenue for the six-month period of 2021 totaled $327.3 million, up 199% from $109.4 million in the prior-year period. Of the overall increase, approximately $207.0 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. In addition, of the overall increase, approximately $3.9 million was attributable to our television segment, primarily due to increases in local and national advertising revenue, and revenue from spectrum usage rights, partially offset by a decrease in political revenue. Additionally, of the overall increase, approximately $6.9 million was attributable to our radio segment primarily due to increases in local and national advertising revenue, partially offset by a decrease in political revenue.

Cost of revenue for the six-month period of 2021 totaled $193.8 million compared to $13.8 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 for the six-month period of 2021 totaled $81.9 million, up 12% from $73.3 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, and due to an increase in expenses associated with the increase in advertising revenue, partially offset by decreases in bad debt and salary expense associated with furloughs and layoffs that occurred in 2020.

Corporate expenses for the six-month period of 2021 totaled $14.5 million, up 19% from $12.2 million in the prior-year period. The increase was primarily due to an increase in salaries, audit fees and financial due diligence fees.

Balance Sheet and Related Metrics

Cash and marketable securities as of June 30, 2021 totaled approximately $181.9 million. Total debt was $213.8 million. Net of $75 million of cash and marketable securities, total leverage as defined in the Company's credit agreement was 1.7 times as of June 30, 2021. Net of total accessible cash and marketable securities, total leverage was 0.7 times.

Unaudited Segment Results

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

Net revenue for the six-month period of 2021 totaled $327.3 million, up 199% from $109.4 million in the prior-year period. Of the overall increase, approximately $207.0 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. In addition, of the overall increase, approximately $3.9 million was attributable to our television segment, primarily due to increases in local and national advertising revenue, and revenue from spectrum usage rights, partially offset by a decrease in political revenue. Additionally, of the overall increase, approximately $6.9 million was attributable to our radio segment primarily due to increases in local and national advertising revenue, partially offset by a decrease in political revenue.

Cost of revenue for the six-month period of 2021 totaled $193.8 million compared to $13.8 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 for the six-month period of 2021 totaled $81.9 million, up 12% from $73.3 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, and due to an increase in expenses associated with the increase in advertising revenue, partially offset by decreases in bad debt and salary expense associated with furloughs and layoffs that occurred in 2020.

Corporate expenses for the six-month period of 2021 totaled $14.5 million, up 19% from $12.2 million in the prior-year period. The increase was primarily due to an increase in salaries, audit fees and financial due diligence fees.

Balance Sheet and Related Metrics

Cash and marketable securities as of June 30, 2021 totaled approximately $181.9 million. Total debt was $213.8 million. Net of $75 million of cash and marketable securities, total leverage as defined in the Company's credit agreement was 1.7 times as of June 30, 2021. Net of total accessible cash and marketable securities, total leverage was 0.7 times.

Unaudited Segment Results

Three-Month Period Six-Month Period

Ended June 30, Ended June 30,

2021 2020 % 2021 2020 % Change Change

Net Revenue

Digital $ 130,223 $ 11,373 1045 % $ 231,705 $ 24,704 838 %

Television 34,057 26,955 26 % 70,148 66,154 6 %

Radio 14,130 6,788 108 % 25,437 18,507 37 %

Total $ 178,410 $ 45,116 295 % $ 327,290 $ 109,365 199 %



Cost ofRevenue - digital (1)

Digital $ 109,030 $ 6,447 * $ 193,786 $ 13,794 *



Operating Expenses (1)

Digital 12,027 6,156 95 % 22,877 13,020 76 %

Television 19,516 17,736 10 % 39,400 39,493 (0 ) %

Radio 9,899 9,145 8 % 19,579 20,794 (6 ) %

Total $ 41,442 $ 33,037 25 % $ 81,856 $ 73,307 12 %



Corporate $ 7,345 $ 5,384 36 % $ 14,503 $ 12,224 19 %Expenses (1)



Consolidatedadjusted $ 17,787 $ 1,724 932 % $ 31,982 $ 11,402 180 %EBITDA (1)

(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 second quarter 2021 results on Thursday, August 5, 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 13720020. 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 Southeast Asia. Entravision has 54 television stations and is the largest affiliate group of the Univision and UniMs television networks, and 47 Spanish-language radio stations that feature nationally recognized, award-winning talent. Our dynamic digital portfolio includes Entravision Digital, which serves small- and medium-size businesses 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. We also offer digital advertising solutions representing major technology platforms in Latin America, through our Cisneros Interactive business, and in Southeast Asia, through our MediaDonuts business. 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.

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

Notice of Conference Call

Entravision Communications Corporation will hold a conference call to discuss its second quarter 2021 results on Thursday, August 5, 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 13720020. 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 Southeast Asia. Entravision has 54 television stations and is the largest affiliate group of the Univision and UniMs television networks, and 47 Spanish-language radio stations that feature nationally recognized, award-winning talent. Our dynamic digital portfolio includes Entravision Digital, which serves small- and medium-size businesses 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. We also offer digital advertising solutions representing major technology platforms in Latin America, through our Cisneros Interactive business, and in Southeast Asia, through our MediaDonuts business. 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)



June 30, December 31,

2021 2020

ASSETS

Current assets

Cash and cash equivalents $ 171,862 $ 119,162

Marketable securities 10,009 27,988

Restricted cash 749 749

Trade receivables, net of allowance for doubtful 141,697 142,004 accounts

Assets held for sale 7,248 2,141

Prepaid expenses and other current assets 23,345 18,021

Total current assets 354,910 310,065

Property and equipment, net 66,375 72,004

Intangible assets subject to amortization, net 45,760 49,412

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

Goodwill 58,043 58,043

Operating leases right of use asset 33,741 33,525

Other assets 7,436 7,643

Total assets $ 778,018 $ 747,345





LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

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

Accounts payable and accrued expenses 141,767 126,849

Operating lease liabilities 7,524 7,290

Total current liabilities 152,291 137,139

Long-term debt, less current maturities, net of 208,612 210,454 unamortized debt issuance costs

Long-term operating lease liabilities 31,447 31,775

Other long-term liabilities 3,507 3,732

Deferred income taxes 57,729 54,980

Total liabilities 453,586 438,080



Redeemable noncontrolling interest 37,470 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 826,474 828,813

Accumulated deficit (538,493 ) (551,786 )

Accumulated other comprehensive income (loss) (1,028 ) (1,056 )

Total stockholders' equity 286,962 275,980

Total liabilities and stockholders' equity $ 778,018 $ 747,345

Entravision Communications Corporation

Consolidated Statements of Operations

(In thousands, except share and per share data)

(Unaudited)

Three-Month Period

Six-Month Period

Ended June 30,

Ended June 30,

2021

2020

2021

2020

Net revenue

$

178,410

$

45,116

$

327,290

$

109,365

Expenses:

Cost of revenue - digital

109,030

6,447

193,786

13,794

Direct operating expenses

28,336

22,140

54,897

48,819

Selling, general and administrative expenses

13,106

10,897

26,959

24,488

Corporate expenses

7,345

5,384

14,503

12,224

Depreciation and amortization

5,074

3,873

10,258

8,385

Impairment charge

112

-

1,438

39,835

Foreign currency (gain) loss

(309

)

(155

)

277

1,353

Other operating (gain) loss

(523

)

(2,030

)

(2,436

)

(2,866

)

162,171

46,556

299,682

146,032

Operating income (loss)

16,239

(1,440

)

27,608

(36,667

)

Interest expense

(1,856

)

(2,024

)

(3,573

)

(4,704

)

Interest income

83

539

223

1,162

Dividend income

2

-

4

24

Income (loss) before income taxes

14,468

(2,925

)

24,262

(40,185

)

Income tax benefit (expense)

(3,992

)

5,263

(6,784

)

6,931

Net income (loss)

10,476

2,338

17,478

(33,254

)

Net (income) loss attributable to redeemable noncontrolling interest

(2,612

)

-

(4,185

)

-

Net income (loss) attributable to common stockholders

$

7,864

$

2,338

$

13,293

$

(33,254

)

Basic and diluted earnings per share:

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

$

0.09

$

0.03

$

0.16

$

(0.39

)

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

$

0.09

$

0.03

$

0.15

$

(0.39

)

Cash dividends declared per common share, basic and diluted

$

0.03

$

0.03

$

0.05

$

0.08

Weighted average common shares outstanding, basic

85,188,182

84,123,530

85,115,310

84,220,649

Weighted average common shares outstanding, diluted

87,777,039

84,669,250

87,382,215

84,220,649

Entravision Communications Corporation

Consolidated Statements of Operations

(In thousands, except share and per share data)

(Unaudited)

Three-Month Period Six-Month Period

Ended June 30, Ended June 30,

2021 2020 2021 2020

Net revenue $ 178,410 $ 45,116 $ 327,290 $ 109,365



Expenses:

Cost ofrevenue - 109,030 6,447 193,786 13,794 digital

Directoperating 28,336 22,140 54,897 48,819 expenses

Selling,general and 13,106 10,897 26,959 24,488 administrativeexpenses

Corporate 7,345 5,384 14,503 12,224 expenses

Depreciationand 5,074 3,873 10,258 8,385 amortization

Impairment 112 - 1,438 39,835 charge

Foreigncurrency (309 ) (155 ) 277 1,353 (gain) loss

Otheroperating (523 ) (2,030 ) (2,436 ) (2,866 )(gain) loss

162,171 46,556 299,682 146,032

Operating 16,239 (1,440 ) 27,608 (36,667 )income (loss)

Interest (1,856 ) (2,024 ) (3,573 ) (4,704 )expense

Interest 83 539 223 1,162 income

Dividend 2 - 4 24 income

Income (loss)before income 14,468 (2,925 ) 24,262 (40,185 )taxes

Income taxbenefit (3,992 ) 5,263 (6,784 ) 6,931 (expense)



Net income 10,476 2,338 17,478 (33,254 )(loss)

Net (income)lossattributable (2,612 ) - (4,185 ) - to redeemablenoncontrollinginterest

Net income(loss)attributable $ 7,864 $ 2,338 $ 13,293 $ (33,254 )to commonstockholders



Basic anddiluted earnings pershare:

Net income(loss) pershareattributable $ 0.09 $ 0.03 $ 0.16 $ (0.39 )to commonstockholders,basic

Net income(loss) pershareattributable $ 0.09 $ 0.03 $ 0.15 $ (0.39 )to commonstockholders,diluted



Cash dividendsdeclared percommon share, $ 0.03 $ 0.03 $ 0.05 $ 0.08 basic anddiluted



Weightedaverage commonshares 85,188,182 84,123,530 85,115,310 84,220,649 outstanding,basic

Weightedaverage commonshares 87,777,039 84,669,250 87,382,215 84,220,649 outstanding,diluted

Entravision Communications Corporation

Consolidated Statements of Cash Flows

(In thousands; unaudited)

Three-Month Period

Six-Month Period

Ended June 30,

Ended June 30,

2021

2020

2021

2020

Cash flows from operating activities:

Net income (loss)

$

10,476

$

2,338

$

17,478

$

(33,254

)

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

Depreciation and amortization

5,074

3,873

10,258

8,385

Impairment charge

112

-

1,438

39,835

Deferred income taxes

712

(5,585

)

3,699

(7,398

)

Non-cash interest

159

163

298

332

Amortization of syndication contracts

119

128

238

258

Payments on syndication contracts

(115

)

(123

)

(239

)

(253

)

Non-cash stock-based compensation

1,135

803

2,206

1,592

(Gain) loss on disposal of property and equipment

-

(627

)

-

(627

)

Changes in assets and liabilities:

(Increase) decrease in accounts receivable

(9,460

)

12,031

467

19,513

(Increase) decrease in prepaid expenses and other assets

1,732

4,064

2,909

5,090

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

10,989

(9,616

)

5,633

(14,010

)

Net cash provided by operating activities

20,933

7,449

44,385

19,463

Cash flows from investing activities:

Proceeds from sale of property and equipment and intangibles

-

3,989

-

3,989

Purchases of property and equipment

(998

)

(3,005

)

(2,836

)

(5,676

)

Purchases of intangible assets

-

(3

)

-

(158

)

Proceeds from marketable securities

5,680

10,243

17,800

26,860

Net cash provided by (used in) investing activities

4,682

11,224

14,964

25,015

Cash flows from financing activities:

Proceeds from stock option exercises

172

-

172

-

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

(449

)

(15

)

(458

)

(15

)

Payments on long-term debt

(750

)

(750

)

(1,500

)

(1,500

)

Dividends paid

(2,133

)

(2,104

)

(4,259

)

(6,322

)

Repurchase of Class A common stock

-

-

-

(525

)

Payments of capitalized debt costs

(604

)

-

(604

)

-

Net cash used in financing activities

(3,764

)

(2,869

)

(6,649

)

(8,362

)

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

24

(45

)

-

32

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

21,875

15,759

52,700

36,148

Cash, cash equivalents and restricted cash:

Beginning

150,736

54,246

119,911

33,857

Ending

$

172,611

$

70,005

$

172,611

$

70,005

Entravision Communications Corporation

Consolidated Statements of Cash Flows

(In thousands; unaudited)



Three-Month Period Six-Month Period

Ended June 30, Ended June 30,

2021 2020 2021 2020

Cash flows from operating activities:

Net income (loss) $ 10,476 $ 2,338 $ 17,478 $ (33,254 )

Adjustments to reconcilenet income (loss) to net cash provided byoperating activities:

Depreciation and 5,074 3,873 10,258 8,385 amortization

Impairment charge 112 - 1,438 39,835

Deferred income taxes 712 (5,585 ) 3,699 (7,398 )

Non-cash interest 159 163 298 332

Amortization of 119 128 238 258 syndication contracts

Payments on syndication (115 ) (123 ) (239 ) (253 )contracts

Non-cash stock-based 1,135 803 2,206 1,592 compensation

(Gain) loss on disposalof property and - (627 ) - (627 )equipment

Changes in assets and liabilities:

(Increase) decrease in (9,460 ) 12,031 467 19,513 accounts receivable

(Increase) decrease inprepaid expenses and 1,732 4,064 2,909 5,090 other assets

Increase (decrease) inaccounts payable, 10,989 (9,616 ) 5,633 (14,010 )accrued expenses andother liabilities

Net cash provided by 20,933 7,449 44,385 19,463 operating activities

Cash flows from investing activities:

Proceeds from sale ofproperty and equipment - 3,989 - 3,989 and intangibles

Purchases of property (998 ) (3,005 ) (2,836 ) (5,676 )and equipment

Purchases of intangible - (3 ) - (158 )assets

Proceeds from marketable 5,680 10,243 17,800 26,860 securities

Net cash provided by(used in) investing 4,682 11,224 14,964 25,015 activities

Cash flows from financing activities:

Proceeds from stock 172 - 172 - option exercises

Tax payments related toshares withheld for (449 ) (15 ) (458 ) (15 )share-based compensationplans

Payments on long-term (750 ) (750 ) (1,500 ) (1,500 )debt

Dividends paid (2,133 ) (2,104 ) (4,259 ) (6,322 )

Repurchase of Class A - - - (525 )common stock

Payments of capitalized (604 ) - (604 ) - debt costs

Net cash used in (3,764 ) (2,869 ) (6,649 ) (8,362 )financing activities

Effect of exchange rateson cash, cash 24 (45 ) - 32 equivalents andrestricted cash

Net increase (decrease)in cash, cash 21,875 15,759 52,700 36,148 equivalents andrestricted cash

Cash, cash equivalents and restricted cash:

Beginning 150,736 54,246 119,911 33,857

Ending $ 172,611 $ 70,005 $ 172,611 $ 70,005

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

Six-Month Period

Ended June 30,

Ended June 30,

2021

2020

2021

2020

Consolidated adjusted EBITDA (1)

$

17,787

$

1,724

$

31,982

$

11,402

EBITDA attributable to redeemable noncontrolling interest

4,254

-

7,091

-

Interest expense

(1,856

)

(2,024

)

(3,573

)

(4,704

)

Interest income

83

539

223

1,162

Dividend income

2

-

4

24

Income tax expense

(3,992

)

5,263

(6,784

)

6,931

Amortization of syndication contracts

(119

)

(129

)

(238

)

(258

)

Payments on syndication contracts

115

123

239

253

Non-cash stock-based compensation included in direct operating expenses

(334

)

(104

)

(650

)

(235

)

Non-cash stock-based compensation included in corporate expenses

(801

)

(699

)

(1,556

)

(1,357

)

Depreciation and amortization

(5,074

)

(3,873

)

(10,258

)

(8,385

)

Impairment charge

(112

)

-

(1,438

)

(39,835

)

Non-recurring cash severance charge

-

(512

)

-

(1,118

)

Other operating gain (loss)

523

2,030

2,436

2,866

Net (income) loss attributable to redeemable noncontrolling interest

(2,612

)

-

(4,185

)

-

Net income (loss) attributable to common stockholders

7,864

2,338

13,293

(33,254

)

Depreciation and amortization

5,074

3,873

10,258

8,385

Impairment charge

112

-

1,438

39,835

Deferred income taxes

712

(5,585

)

3,699

(7,398

)

Non-cash interest

159

163

298

332

Amortization of syndication contracts

119

128

238

258

Payments on syndication contracts

(115

)

(123

)

(239

)

(253

)

Non-cash stock-based compensation

1,135

803

2,206

1,592

(Gain) loss on disposal of property and equipment

-

(627

)

-

(627

)

Net income (loss) attributable to redeemable noncontrolling interest

2,612

-

4,185

-

Changes in assets and liabilities:

(Increase) decrease in accounts receivable

(9,460

)

12,031

467

19,513

(Increase) decrease in prepaid expenses and other assets

1,732

4,064

2,909

5,090

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

10,989

(9,616

)

5,633

(14,010

)

Cash flows from operating activities

20,933

7,449

44,385

19,463

Entravision Communications Corporation

Reconciliation of Consolidated Adjusted EBITDA to Cash Flows From OperatingActivities

(In thousands; unaudited)

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

Three-Month Period Six-Month Period

Ended June 30, Ended June 30,

2021 2020 2021 2020



Consolidated adjusted $ 17,787 $ 1,724 $ 31,982 $ 11,402 EBITDA (1)

EBITDA attributable toredeemable noncontrolling 4,254 - 7,091 - interest

Interest expense (1,856 ) (2,024 ) (3,573 ) (4,704 )

Interest income 83 539 223 1,162

Dividend income 2 - 4 24

Income tax expense (3,992 ) 5,263 (6,784 ) 6,931

Amortization of (119 ) (129 ) (238 ) (258 )syndication contracts

Payments on syndication 115 123 239 253 contracts

Non-cash stock-basedcompensation included in (334 ) (104 ) (650 ) (235 )direct operating expenses

Non-cash stock-basedcompensation included in (801 ) (699 ) (1,556 ) (1,357 )corporate expenses

Depreciation and (5,074 ) (3,873 ) (10,258 ) (8,385 )amortization

Impairment charge (112 ) - (1,438 ) (39,835 )

Non-recurring cash - (512 ) - (1,118 )severance charge

Other operating gain 523 2,030 2,436 2,866 (loss)

Net (income) lossattributable to (2,612 ) - (4,185 ) - redeemable noncontrollinginterest

Net income (loss)attributable to common 7,864 2,338 13,293 (33,254 )stockholders



Depreciation and 5,074 3,873 10,258 8,385 amortization

Impairment charge 112 - 1,438 39,835

Deferred income taxes 712 (5,585 ) 3,699 (7,398 )

Non-cash interest 159 163 298 332

Amortization of 119 128 238 258 syndication contracts

Payments on syndication (115 ) (123 ) (239 ) (253 )contracts

Non-cash stock-based 1,135 803 2,206 1,592 compensation

(Gain) loss on disposal - (627 ) - (627 )of property and equipment

Net income (loss)attributable to 2,612 - 4,185 - redeemable noncontrollinginterest

Changes in assets and liabilities:

(Increase) decrease in (9,460 ) 12,031 467 19,513 accounts receivable

(Increase) decrease inprepaid expenses and 1,732 4,064 2,909 5,090 other assets

Increase (decrease) inaccounts payable, accrued 10,989 (9,616 ) 5,633 (14,010 )expenses and otherliabilities

Cash flows from operating 20,933 7,449 44,385 19,463 activities

(1)Consolidated adjusted EBITDA is defined on page 2.

(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

Six-Month Period

Ended June 30,

Ended June 30,

2021

2020

2021

2020

Consolidated adjusted EBITDA (1)

$

17,787

$

1,724

$

31,982

$

11,402

Net interest expense (1)

(1,614

)

(1,322

)

(3,052

)

(3,210

)

Dividend income

2

-

4

24

Cash paid for income taxes

(3,280

)

(323

)

(3,085

)

(467

)

Capital expenditures (2)

(998

)

(3,005

)

(2,836

)

(5,676

)

Non-recurring cash severance charge

-

(512

)

-

(1,118

)

Other operating gain (loss)

523

2,030

2,436

2,866

Free cash flow (1)

12,420

(1,408

)

25,449

3,821

Capital expenditures (2)

998

3,005

2,836

5,676

EBITDA attributable to redeemable noncontrolling interest

4,254

-

7,091

-

(Gain) loss on disposal of property and equipment

-

(627

)

-

(627

)

Changes in assets and liabilities:

(Increase) decrease in accounts receivable

(9,460

)

12,031

467

19,513

(Increase) decrease in prepaid expenses and other assets

1,732

4,064

2,909

5,090

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

10,989

(9,616

)

5,633

(14,010

)

Cash Flows From Operating Activities

$

20,933

$

7,449

$

44,385

$

19,463

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. Areconciliation of this non-GAAP measure to cash flows from operating activitiesfor each of the periods presented is as follows:

Three-Month Period Six-Month Period

Ended June 30, Ended June 30,

2021 2020 2021 2020

Consolidated adjusted $ 17,787 $ 1,724 $ 31,982 $ 11,402 EBITDA (1)

Net interest expense (1) (1,614 ) (1,322 ) (3,052 ) (3,210 )

Dividend income 2 - 4 24

Cash paid for income taxes (3,280 ) (323 ) (3,085 ) (467 )

Capital expenditures (2) (998 ) (3,005 ) (2,836 ) (5,676 )

Non-recurring cash - (512 ) - (1,118 )severance charge

Other operating gain 523 2,030 2,436 2,866 (loss)

Free cash flow (1) 12,420 (1,408 ) 25,449 3,821



Capital expenditures (2) 998 3,005 2,836 5,676

EBITDA attributable toredeemable noncontrolling 4,254 - 7,091 - interest

(Gain) loss on disposal of - (627 ) - (627 )property and equipment

Changes in assets and liabilities:

(Increase) decrease in (9,460 ) 12,031 467 19,513 accounts receivable

(Increase) decrease inprepaid expenses and other 1,732 4,064 2,909 5,090 assets

Increase (decrease) inaccounts payable, accrued 10,989 (9,616 ) 5,633 (14,010 )expenses and otherliabilities

Cash Flows From Operating $ 20,933 $ 7,449 $ 44,385 $ 19,463Activities

(1)Consolidated adjusted EBITDA, net interest expense, and free cash flow are defined on page 2.

(2)Capital expenditures are not part of the consolidated statement of operations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210805005927/en/

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

CONTACT: Kimberly Esterkin ADDO Investor Relations 310-829-5400 evc@addo.com