Business Wire | Nov 4, 2021 04:10PM EDT

Entravision Communications Corporation Reports Third Quarter 2021 Results

Nov. 04, 2021

SANTA MONICA, Calif.--(BUSINESS WIRE)--Nov. 04, 2021--Entravision Communications Corporation (NYSE: EVC), a leading global media, marketing and technology company, today announced financial results for the three- and nine-month periods ended September 30, 2021.

Third Quarter 2021 Highlights

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

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

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

Acquisition of 365 Digital

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

Quarterly Cash Dividend

The Company also announced today that its Board of Directors approved a quarterly cash dividend to shareholders of $0.025 per share on the Company's Class A, Class B and Class U common stock, in an aggregate amount of approximately $2.1 million. The quarterly dividend will be payable on December 31, 2021 to shareholders of record as of the close of business on December 16, 2021, and the common stock will trade ex-dividend on December 15, 2021. The Company currently anticipates that future cash dividends will be paid on a quarterly basis; however, any decision to pay future cash dividends will be subject to approval by the Board.

Non-GAAP Financial Measures

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

UnauditedFinancialHighlights

Three-Month Period Nine-Month Period

Ended September 30, Ended September 30,

2021 2020 % 2021 2020 % Change Change

Net revenue $ 199,008 $ 62,978 216 % $ 526,298 $ 172,343 205 %

Cost ofrevenue - 124,332 7,808 * 318,118 21,602 * digital (1)

Operating 43,113 34,061 27 % 124,969 107,368 16 %expenses (2)

Corporate 7,253 6,287 15 % 21,756 18,511 18 %expenses (3)

Foreign )currency 177 (680 ) * 454 673 (33 %(gain) loss



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



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



Net income $ 13,884 $ 9,016 54 % $ 31,362 $ (24,238 ) * (loss)

Net (income)lossattributable $ (1,753 ) $ - * $ (5,938 ) $ - * to redeemablenoncontrollinginterest

Net income(loss)attributable $ 12,131 $ 9,016 35 % $ 25,424 $ (24,238 ) * to commonstockholders



Net income(loss) pershareattributable $ 0.14 $ 0.11 27 % $ 0.30 $ (0.29 ) * to commonstockholders,basic

Net income(loss) pershareattributable $ 0.14 $ 0.11 27 % $ 0.29 $ (0.29 ) * to commonstockholders,diluted

Weightedaverage commonshares 85,390,333 84,185,728 85,207,992 84,208,924 outstanding,basic

Weightedaverage commonshares 88,315,732 84,863,020 87,694,395 84,208,924 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 September 30, 2021 and 2020, respectively, and $1.0 million and $0.4 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2021 and 2020, respectively.

(3)

Corporate expenses include $0.8 million and $0.7 million of non-cash stock-based compensation for the three-month periods ended September 30, 2021 and 2020, respectively, and $2.3 million and $2.0 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2021 and 2020, respectively.

(4)

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

(5)

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

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(2) and $0.1 million of non-cash stock-based compensation for the three-month periods ended September 30, 2021 and 2020, respectively, and $1.0 million and $0.4 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2021 and 2020, respectively.

Corporate expenses include $0.8 million and $0.7 million of non-cash stock-based compensation for the three-month periods ended September 30,(3) 2021 and 2020, respectively, and $2.3 million and $2.0 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2021 and 2020, respectively.

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 ResultsThree-Month Period

Ended September 30,

2021

2020

% Change

Net revenue

$

199,008

$

62,978

216

%

Cost of revenue - digital (1)

124,332

7,808

*

Operating expenses (1)

43,113

34,061

27

%

Corporate expenses (1)

7,253

6,287

15

%

Depreciation and amortization

5,901

3,934

50

%

Impairment charge

166

-

*

Foreign currency (gain) loss

177

(680

)

*

Other operating (gain) loss

(2,431

)

(2,683

)

(9

)%

Operating income (loss)

20,497

14,251

44

%

Interest expense, net

(1,702

)

(1,502

)

13

%

Dividend income

207

3

*

Income (loss) before income taxes

19,002

12,752

49

%

Income tax benefit (expense)

(5,118

)

(3,736

)

37

%

Net income (loss)

13,884

9,016

54

%

Net (income) loss attributable to redeemable noncontrolling interest

(1,753

)

-

*

Net income (loss) attributable to common stockholders

$

12,131

$

9,016

35

%

Unaudited Financial Results Three-Month Period

Ended September 30,

2021 2020 % Change

Net revenue $ 199,008 $ 62,978 216 %

Cost of revenue - digital (1) 124,332 7,808 *

Operating expenses (1) 43,113 34,061 27 %

Corporate expenses (1) 7,253 6,287 15 %

Depreciation and amortization 5,901 3,934 50 %

Impairment charge 166 - *

Foreign currency (gain) loss 177 (680 ) *

Other operating (gain) loss (2,431 ) (2,683 ) (9 ) %



Operating income (loss) 20,497 14,251 44 %

Interest expense, net (1,702 ) (1,502 ) 13 %

Dividend income 207 3 *



Income (loss) before income taxes 19,002 12,752 49 %

Income tax benefit (expense) (5,118 ) (3,736 ) 37 %



Net income (loss) 13,884 9,016 54 %

Net (income) loss attributable to redeemable (1,753 ) - * noncontrolling interest

Net income (loss) attributable to common $ 12,131 $ 9,016 35 %stockholders

(1)

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

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

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

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

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

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

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

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

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

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

Nine-Month Period

Ended September 30,

2021 2020 % Change

Net revenue $ 526,298 $ 172,343 205 %

Cost of revenue - digital (1) 318,118 21,602 *

Operating expenses (1) 124,969 107,368 16 %

Corporate expenses (1) 21,756 18,511 18 %

Depreciation and amortization 16,159 12,319 31 %

Impairment charge 1,604 39,835 (96 ) %

Foreign currency (gain) loss 454 673 (33 ) %

Other operating (gain) loss (4,867 ) (5,549 ) (12 ) %



Operating income (loss) 48,105 (22,416 ) *

Interest expense, net (5,052 ) (5,043 ) 0 %

Dividend income 211 26 712 %



Income (loss) before income taxes 43,264 (27,433 ) *

Income tax benefit (expense) (11,902 ) 3,195 *



Net income (loss) 31,362 (24,238 ) *

Net (income) loss attributable to (5,938 ) - * redeemable noncontrolling interest

Net income (loss) attributable to common $ 25,424 $ (24,238 ) * stockholders

(1)

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

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

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

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

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

Balance Sheet and Related Metrics

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

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

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

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

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

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

Balance Sheet and Related Metrics

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

UnauditedSegmentResults

Three-Month Period Nine-Month Period

Ended September 30, Ended September 30,

2021 2020 % 2021 2020 % Change Change

Net Revenue

Digital $ 146,121 $ 13,655 970 % $ 377,826 $ 38,359 885 %

Television 36,450 37,786 (4 ) 106,598 103,940 3 % %

Radio 16,437 11,537 42 % 41,874 30,044 39 %

Total $ 199,008 $ 62,978 216 % $ 526,298 $ 172,343 205 %



Cost ofRevenue - digital (1)

Digital $ 124,332 $ 7,808 * $ 318,118 $ 21,602 *



Operating Expenses (1)

Digital 13,187 5,383 145 % 36,064 18,403 96 %

Television 20,148 18,978 6 % 59,548 58,471 2 %

Radio 9,778 9,700 1 % 29,357 30,494 (4 ) %

Total $ 43,113 $ 34,061 27 % $ 124,969 $ 107,368 16 %



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



Consolidatedadjusted $ 23,195 $ 16,371 42 % $ 55,177 $ 27,773 99 %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 third quarter 2021 results on Thursday, November 4, 2021 at 5 p.m. Eastern Time. To access the conference call, please dial (877) 407-9716 (U.S.) or (201) 493-6779 (Int'l) ten minutes prior to the start time and reference Conference ID number 13723009. The call will also be available via live webcast on the investor relations portion of the Company's website located at www.entravision.com.

About Entravision Communications Corporation

Entravision is a diversified global media, marketing and technology company serving clients throughout the United States and in fast growing population centers in more than 30 countries across Latin America, Europe, Asia and Africa. Our dynamic portfolio of services includes digital, television and radio offerings. Digital, our largest revenue segment, is comprised of five core businesses: Entravision Digital, Smadex, Cisneros Interactive, MediaDonuts, and 365 Digital. Entravision Digital provides branding and performance digital solutions to clients and small- and mid-size businesses throughout the world, including the U.S., Latin America and Europe. Smadex provides cutting-edge mobile programmatic solutions and demand-side platforms which enable advertisers to effectively execute performance campaigns using machine-learned bidding algorithms. Cisneros Interactive provides unique digital marketing solutions representing major global publishers and ad-tech platforms in Latin America, while also managing the leading digital audio network and solutions player Audio.Ad. MediaDonuts provides digital marketing performance and branding services in the Southeast Asia region and maintains unique commercial partnerships with some of the world's leading digital publishers and social media platforms. 365 Digital is a digital advertising solutions provider that offers exclusive sales representations with major global platforms in South Africa. Beyond digital, Entravision has 53 television stations and is the largest affiliate group of the Univision and UniMs television networks. Entravision also manages 46 primarily Spanish-language radio stations that feature nationally recognized, Emmy award-winning talent. Shares of Entravision Class A Common Stock trade on the NYSE under ticker: EVC. Learn more about all of our innovative media, marketing and technology offerings at entravision.com or connect with us on LinkedIn and Facebook.

Forward-Looking Statements

This press release contains certain forward-looking statements. These forward-looking statements, which are included in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, may involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this press release. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that actual results will not differ materially from these expectations, and the Company disclaims any duty to update any forward-looking statements made by the Company. From time to time, these risks, uncertainties and other factors are discussed in the Company's filings with the Securities and Exchange Commission.

(Financial Table Follows)

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

Notice of Conference Call

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

About Entravision Communications Corporation

Entravision is a diversified global media, marketing and technology company serving clients throughout the United States and in fast growing population centers in more than 30 countries across Latin America, Europe, Asia and Africa. Our dynamic portfolio of services includes digital, television and radio offerings. Digital, our largest revenue segment, is comprised of five core businesses: Entravision Digital, Smadex, Cisneros Interactive, MediaDonuts, and 365 Digital. Entravision Digital provides branding and performance digital solutions to clients and small- and mid-size businesses throughout the world, including the U.S., Latin America and Europe. Smadex provides cutting-edge mobile programmatic solutions and demand-side platforms which enable advertisers to effectively execute performance campaigns using machine-learned bidding algorithms. Cisneros Interactive provides unique digital marketing solutions representing major global publishers and ad-tech platforms in Latin America, while also managing the leading digital audio network and solutions player Audio.Ad. MediaDonuts provides digital marketing performance and branding services in the Southeast Asia region and maintains unique commercial partnerships with some of the world's leading digital publishers and social media platforms. 365 Digital is a digital advertising solutions provider that offers exclusive sales representations with major global platforms in South Africa. Beyond digital, Entravision has 53 television stations and is the largest affiliate group of the Univision and UniMs television networks. Entravision also manages 46 primarily Spanish-language radio stations that feature nationally recognized, Emmy award-winning talent. Shares of Entravision Class A Common Stock trade on the NYSE under ticker: EVC. Learn more about all of our innovative media, marketing and technology offerings at entravision.com or connect with us on LinkedIn and Facebook.

Forward-Looking Statements

This press release contains certain forward-looking statements. These forward-looking statements, which are included in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, may involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this press release. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that actual results will not differ materially from these expectations, and the Company disclaims any duty to update any forward-looking statements made by the Company. From time to time, these risks, uncertainties and other factors are discussed in the Company's filings with the Securities and Exchange Commission.

(Financial Table Follows)

Entravision Communications CorporationConsolidated Balance Sheets(In thousands; unaudited)

September December 30, 31,

2021 2020

ASSETS

Current assets

Cash and cash equivalents $ 182,891 $ 119,162

Marketable securities - 27,988

Restricted cash 749 749

Trade receivables, net of allowance for doubtful 168,165 142,004 accounts

Assets held for sale 2,907 2,141

Prepaid expenses and other current assets 24,803 18,021

Total current assets 379,515 310,065

Property and equipment, net 64,600 72,004

Intangible assets subject to amortization, net 65,880 49,412

Intangible assets not subject to amortization 209,153 216,653

Goodwill 68,728 58,043

Operating leases right of use asset 32,053 33,525

Other assets 8,474 7,643

Total assets $ 828,403 $ 747,345





LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Current maturities of long-term debt $ 4,694 $ 3,000

Accounts payable and accrued expenses 179,912 126,849

Operating lease liabilities 7,353 7,290

Total current liabilities 191,959 137,139

Long-term debt, less current maturities, net of 208,014 210,454 unamortized debt issuance costs

Long-term operating lease liabilities 29,851 31,775

Other long-term liabilities 80,893 3,732

Deferred income taxes 64,416 54,980

Total liabilities 575,133 438,080



Redeemable noncontrolling interest - 33,285

Stockholders' equity

Class A common stock 6 6

Class B common stock 2 2

Class U common stock 1 1

Additional paid-in capital 780,426 828,813

Accumulated deficit (526,362 ) (551,786 )

Accumulated other comprehensive income (loss) (803 ) (1,056 )

Total stockholders' equity 253,270 275,980

Total liabilities and stockholders' equity $ 828,403 $ 747,345

Entravision Communications Corporation Consolidated Statements of Operations (In thousands, except share and per share data) (Unaudited)

Three-Month Period

Nine-Month Period

Ended September 30,

Ended September 30,

2021

2020

2021

2020

Net revenue

$

199,008

$

62,978

$

526,298

$

172,343

Expenses:

Cost of revenue - digital

124,332

7,808

318,118

21,602

Direct operating expenses

28,583

24,178

83,480

72,997

Selling, general and administrative expenses

14,530

9,883

41,489

34,371

Corporate expenses

7,253

6,287

21,756

18,511

Depreciation and amortization

5,901

3,934

16,159

12,319

Impairment charge

166

-

1,604

39,835

Foreign currency (gain) loss

177

(680

)

454

673

Other operating (gain) loss

(2,431

)

(2,683

)

(4,867

)

(5,549

)

178,511

48,727

478,193

194,759

Operating income (loss)

20,497

14,251

48,105

(22,416

)

Interest expense

(1,714

)

(1,969

)

(5,287

)

(6,673

)

Interest income

12

467

235

1,630

Dividend income

207

3

211

26

Income (loss) before income taxes

19,002

12,752

43,264

(27,433

)

Income tax benefit (expense)

(5,118

)

(3,736

)

(11,902

)

3,195

Net income (loss)

13,884

9,016

31,362

(24,238

)

Net (income) loss attributable to redeemable noncontrolling interest

(1,753

)

-

(5,938

)

-

Net income (loss) attributable to common stockholders

$

12,131

$

9,016

$

25,424

$

(24,238

)

Basic and diluted earnings per share:

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

$

0.14

$

0.11

$

0.30

$

(0.29

)

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

$

0.14

$

0.11

$

0.29

$

(0.29

)

Cash dividends declared per common share, basic and diluted

$

0.03

$

0.03

$

0.08

$

0.10

Weighted average common shares outstanding, basic

85,390,333

84,185,728

85,207,992

84,208,924

Weighted average common shares outstanding, diluted

88,315,732

84,863,020

87,694,395

84,208,924

Entravision Communications CorporationConsolidated Statements of Operations(In thousands, except share and per share data)(Unaudited)

Three-Month Period Nine-Month Period

Ended September 30, Ended September 30,

2021 2020 2021 2020

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



Expenses:

Cost ofrevenue - 124,332 7,808 318,118 21,602 digital

Directoperating 28,583 24,178 83,480 72,997 expenses

Selling,general and 14,530 9,883 41,489 34,371 administrativeexpenses

Corporate 7,253 6,287 21,756 18,511 expenses

Depreciationand 5,901 3,934 16,159 12,319 amortization

Impairment 166 - 1,604 39,835 charge

Foreigncurrency 177 (680 ) 454 673 (gain) loss

Otheroperating (2,431 ) (2,683 ) (4,867 ) (5,549 )(gain) loss

178,511 48,727 478,193 194,759

Operating 20,497 14,251 48,105 (22,416 )income (loss)

Interest (1,714 ) (1,969 ) (5,287 ) (6,673 )expense

Interest 12 467 235 1,630 income

Dividend 207 3 211 26 income

Income (loss)before income 19,002 12,752 43,264 (27,433 )taxes

Income taxbenefit (5,118 ) (3,736 ) (11,902 ) 3,195 (expense)



Net income 13,884 9,016 31,362 (24,238 )(loss)

Net (income)lossattributable (1,753 ) - (5,938 ) - to redeemablenoncontrollinginterest

Net income(loss)attributable $ 12,131 $ 9,016 $ 25,424 $ (24,238 )to commonstockholders



Basic anddiluted earnings pershare:

Net income(loss) pershareattributable $ 0.14 $ 0.11 $ 0.30 $ (0.29 )to commonstockholders,basic

Net income(loss) pershareattributable $ 0.14 $ 0.11 $ 0.29 $ (0.29 )to commonstockholders,diluted



Cash dividendsdeclared percommon share, $ 0.03 $ 0.03 $ 0.08 $ 0.10 basic anddiluted



Weightedaverage commonshares 85,390,333 84,185,728 85,207,992 84,208,924 outstanding,basic

Weightedaverage commonshares 88,315,732 84,863,020 87,694,395 84,208,924 outstanding,diluted

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

Three-Month Period

Nine-Month Period

Ended September 30,

Ended September 30,

2021

2020

2021

2020

Cash flows from operating activities:

Net income (loss)

$

13,884

$

9,016

$

31,362

$

(24,238

)

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

Depreciation and amortization

5,901

3,934

16,159

12,319

Impairment charge

166

-

1,604

39,835

Deferred income taxes

4,649

(1,346

)

8,348

(8,744

)

Non-cash interest

153

159

451

491

Amortization of syndication contracts

119

125

357

383

Payments on syndication contracts

(115

)

(72

)

(354

)

(325

)

Non-cash stock-based compensation

1,094

816

3,300

2,408

(Gain) loss on disposal of property and equipment

(2,622

)

(140

)

(2,622

)

(767

)

Changes in assets and liabilities:

(Increase) decrease in accounts receivable

(16,361

)

(5,228

)

(15,894

)

14,285

(Increase) decrease in prepaid expenses and other assets

(642

)

1,623

2,267

6,713

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

3,169

(2,633

)

8,802

(16,643

)

Net cash provided by operating activities

9,395

6,254

53,780

25,717

Cash flows from investing activities:

Proceeds from sale of property and equipment and intangibles

9,431

1,100

9,431

5,089

Purchases of property and equipment

(1,433

)

(2,065

)

(4,269

)

(7,741

)

Purchases of intangible assets

-

-

-

(158

)

Purchase of a businesses, net of cash acquired

(12,847

)

-

(12,847

)

-

Proceeds from marketable securities

10,000

11,620

27,800

38,480

Purchases of investments

(800

)

-

(800

)

-

Net cash provided by investing activities

4,351

10,655

19,315

35,670

Cash flows from financing activities:

Proceeds from stock option exercises

242

-

414

-

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

(70

)

-

(528

)

(15

)

Payments on long-term debt

(750

)

(750

)

(2,250

)

(2,250

)

Dividends paid

(2,136

)

(2,106

)

(6,395

)

(8,428

)

Repurchase of Class A common stock

-

-

-

(525

)

Payments of capitalized debt costs

-

-

(604

)

-

Net cash used in financing activities

(2,714

)

(2,856

)

(9,363

)

(11,218

)

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

(3

)

(39

)

(3

)

(7

)

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

11,029

14,014

63,729

50,162

Cash, cash equivalents and restricted cash:

Beginning

172,611

70,005

119,911

33,857

Ending

$

183,640

$

84,019

$

183,640

$

84,019

Entravision Communications CorporationReconciliation 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 CorporationConsolidated Statements of Cash Flows(In thousands; unaudited)

Three-Month Period Nine-Month Period

Ended September 30, Ended September 30,

2021 2020 2021 2020

Cash flows from operating activities:

Net income (loss) $ 13,884 $ 9,016 $ 31,362 $ (24,238 )

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

Depreciation and 5,901 3,934 16,159 12,319 amortization

Impairment charge 166 - 1,604 39,835

Deferred income taxes 4,649 (1,346 ) 8,348 (8,744 )

Non-cash interest 153 159 451 491

Amortization of 119 125 357 383 syndication contracts

Payments on syndication (115 ) (72 ) (354 ) (325 )contracts

Non-cash stock-based 1,094 816 3,300 2,408 compensation

(Gain) loss on disposalof property and (2,622 ) (140 ) (2,622 ) (767 )equipment

Changes in assets and liabilities:

(Increase) decrease in (16,361 ) (5,228 ) (15,894 ) 14,285 accounts receivable

(Increase) decrease inprepaid expenses and (642 ) 1,623 2,267 6,713 other assets

Increase (decrease) inaccounts payable, 3,169 (2,633 ) 8,802 (16,643 )accrued expenses andother liabilities

Net cash provided by 9,395 6,254 53,780 25,717 operating activities

Cash flows from investing activities:

Proceeds from sale ofproperty and equipment 9,431 1,100 9,431 5,089 and intangibles

Purchases of property (1,433 ) (2,065 ) (4,269 ) (7,741 )and equipment

Purchases of intangible - - - (158 )assets

Purchase of abusinesses, net of cash (12,847 ) - (12,847 ) - acquired

Proceeds from marketable 10,000 11,620 27,800 38,480 securities

Purchases of investments (800 ) - (800 ) -

Net cash provided by 4,351 10,655 19,315 35,670 investing activities

Cash flows from financing activities:

Proceeds from stock 242 - 414 - option exercises

Tax payments related toshares withheld for (70 ) - (528 ) (15 )share-based compensationplans

Payments on long-term (750 ) (750 ) (2,250 ) (2,250 )debt

Dividends paid (2,136 ) (2,106 ) (6,395 ) (8,428 )

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

Payments of capitalized - - (604 ) - debt costs

Net cash used in (2,714 ) (2,856 ) (9,363 ) (11,218 )financing activities

Effect of exchange rateson cash, cash (3 ) (39 ) (3 ) (7 )equivalents andrestricted cash

Net increase (decrease)in cash, cash 11,029 14,014 63,729 50,162 equivalents andrestricted cash

Cash, cash equivalents and restricted cash:

Beginning 172,611 70,005 119,911 33,857

Ending $ 183,640 $ 84,019 $ 183,640 $ 84,019

Entravision Communications CorporationReconciliation of Consolidated Adjusted EBITDA to Cash Flows From Operating Activities(In thousands; unaudited)

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

Three-Month Period Nine-Month Period

Ended September 30, Ended September 30,

2021 2020 2021 2020



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

EBITDA attributable toredeemable 2,036 - 9,127 - noncontrolling interest

Interest expense (1,714 ) (1,969 ) (5,287 ) (6,673 )

Interest income 12 467 235 1,630

Dividend income 207 3 211 26

Income tax expense (5,118 ) (3,736 ) (11,902 ) 3,195

Amortization of (119 ) (125 ) (357 ) (383 )syndication contracts

Payments on syndication 115 72 354 325 contracts

Non-cash stock-basedcompensation included in (321 ) (148 ) (971 ) (383 )direct operatingexpenses

Non-cash stock-basedcompensation included in (773 ) (668 ) (2,329 ) (2,025 )corporate expenses

Depreciation and (5,901 ) (3,934 ) (16,159 ) (12,319 )amortization

Impairment charge (166 ) - (1,604 ) (39,835 )

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

Other operating gain 2,431 2,683 4,867 5,549 (loss)

Net (income) lossattributable to (1,753 ) - (5,938 ) - redeemablenoncontrolling interest

Net income (loss)attributable to common 12,131 9,016 25,424 (24,238 )stockholders



Depreciation and 5,901 3,934 16,159 12,319 amortization

Impairment charge 166 - 1,604 39,835

Deferred income taxes 4,649 (1,346 ) 8,348 (8,744 )

Non-cash interest 153 159 451 491

Amortization of 119 125 357 383 syndication contracts

Payments on syndication (115 ) (72 ) (354 ) (325 )contracts

Non-cash stock-based 1,094 816 3,300 2,408 compensation

(Gain) loss on disposalof property and (2,622 ) (140 ) (2,622 ) (767 )equipment

Net income (loss)attributable to 1,753 - 5,938 - redeemablenoncontrolling interest

Changes in assets and liabilities:

(Increase) decrease in (16,361 ) (5,228 ) (15,894 ) 14,285 accounts receivable

(Increase) decrease inprepaid expenses and (642 ) 1,623 2,267 6,713 other assets

Increase (decrease) inaccounts payable, 3,169 (2,633 ) 8,802 (16,643 )accrued expenses andother liabilities

Cash flows from 9,395 6,254 53,780 25,717 operating activities

(1)

Consolidated adjusted EBITDA is defined on page 2.

Entravision Communications CorporationReconciliation 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 CorporationReconciliation 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 Nine-Month Period

Ended September 30, Ended September 30,

2021 2020 2021 2020

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

Net interest expense (1) (1,549 ) (1,343 ) (4,601 ) (4,552 )

Dividend income 207 3 211 26

Cash paid for income (469 ) (5,082 ) (3,554 ) (5,549 )taxes

Capital expenditures (2) (1,433 ) (2,065 ) (4,269 ) (7,741 )

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

Other operating gain 2,431 2,683 4,867 5,549 (loss)

Free cash flow (1) 22,382 10,567 47,831 14,388



Capital expenditures (2) 1,433 2,065 4,269 7,741

EBITDA attributable toredeemable 2,036 - 9,127 - noncontrolling interest

(Gain) loss on disposalof property and (2,622 ) (140 ) (2,622 ) (767 )equipment

Changes in assets and liabilities:

(Increase) decrease in (16,361 ) (5,228 ) (15,894 ) 14,285 accounts receivable

(Increase) decrease inprepaid expenses and (642 ) 1,623 2,267 6,713 other assets

Increase (decrease) inaccounts payable, 3,169 (2,633 ) 8,802 (16,643 )accrued expenses andother liabilities

Cash Flows From $ 9,395 $ 6,254 $ 53,780 $ 25,717 Operating Activities

(1)

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

(2)

Capital expenditures are not part of the consolidated statement of operations.

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

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