Business Wire | Nov 5, 2020 04:10PM EST

Entravision Communications Corporation Reports Third Quarter 2020 Results

Nov. 05, 2020

SANTA MONICA, Calif.--(BUSINESS WIRE)--Nov. 05, 2020--Entravision Communications Corporation (NYSE: EVC) today reported financial results for the three- and nine-month periods ended September 30, 2020.

"Entravision had a strong third quarter compared to the second quarter with revenues improving across all three of our operating segments," said Walter F. Ulloa, Chairman and Chief Executive Officer. "A key driver of our progress in the third quarter was our television and radio political advertising sales, which outpaced our expectations and have continued strong during the election cycle. We also continued to execute on our cost-cutting measures to ensure that our Company remains well positioned to weather the impacts of COVID-19. Operating expenses declined 21% for the quarter compared to the prior year period."

Mr. Ulloa continued, "Subsequent to quarter end, we announced a strategic majority investment in Cisneros Interactive, a digital advertising company serving over 2,000 brands and agencies each month across the United States and Latin America. We believe this investment will further advance our digital service offerings for our global client base, while positioning our combined platforms to become one of the largest premier digital advertising companies serving the U.S. Hispanic and Latin American markets. Our balance sheet remains strong, and overall we are pleased with our third quarter results. Our operating segments are making progress in the right direction following the lows experienced in the second quarter, and we are cautiously optimistic about our future prospects."

Historical results, which are attached, are in thousands of U.S. dollars (except share and per share data). This press release contains certain non-GAAP financial measures as defined by SEC Regulation G. The GAAP financial measure most directly comparable to each of these non-GAAP financial measures, and a table reconciling each of these non-GAAP financial measures to its most directly comparable GAAP financial measure is included beginning on page 12. Unaudited financial highlights are as follows:

Three-Month Period Nine-Month Period

Ended September 30, Ended September 30,

2020 2019 % 2020 2019 % Change Change

Net revenue $ 62,978 $ 68,816 (8 ) $ 172,343 $ 202,737 (15 ) % %

Cost ofrevenue - 7,808 9,942 (21 ) 21,602 26,443 (18 )digital % %media (1)

Operating 34,061 43,264 (21 ) 107,368 129,208 (17 )expenses (2) % %

Corporate 6,287 6,785 (7 ) 18,511 20,180 (8 )expenses (3) % %

Foreign )currency (680 ) 927 * 673 977 (31 %(gain) loss



Consolidated )adjusted 16,371 9,142 79 % 27,773 29,778 (7 %EBITDA (4)



Free cash $ 10,567 $ 326 * $ 14,388 $ 3,479 314 %flow (5)



Net income $ 9,016 $ (12,217 ) * $ (24,238 ) $ (27,072 ) (10 )(loss) %



Net incomeper share, $ 0.11 $ (0.14 ) * $ (0.29 ) $ (0.32 ) (9 )basic and %diluted



Weightedaveragecommon 84,185,728 84,765,694 84,208,924 85,404,250 sharesoutstanding,basic

Weightedaveragecommon 84,863,020 84,765,694 84,208,924 85,404,250 sharesoutstanding,diluted

(1)

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

(2)

For purposes of presentation in this table, the operating expenses line item includes direct operating and selling, general and administrative expenses. Included in operating expenses are $0.1 million of non-cash stock-based compensation for each of the three-month periods ended September 30, 2020 and 2019, and $0.4 million and $0.3 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2020 and 2019, respectively. Also for purposes of presentation in this table, the operating expenses line item does not include corporate expenses, foreign currency (gain) loss, depreciation and amortization, impairment charge, gain (loss) on sale of assets, gain (loss) on debt extinguishment, other income (loss) and change in fair value of contingent consideration.

(3)

Corporate expenses include $0.7 million of non-cash stock-based compensation for each of the three-month periods ended September 30, 2020 and 2019, and $2.0 million and $2.1 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2020 and 2019, respectively.

(4)

Consolidated adjusted EBITDA means net income (loss) plus gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation included in operating and corporate expenses, net interest expense, other operating gain (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from the Federal Communications Commission, or FCC, spectrum incentive auction less related expenses, expenses associated with investments, 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, acquisitions and dispositions and certain pro-forma cost savings.

(5)

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

Quarterly Cash Dividend

The Company announced today that its Board of Directors approved a quarterly cash dividend to shareholders of $0.025 per share on the Company's Class A, Class B and Class U common stock, in an aggregate amount of approximately $2.1 million. The quarterly dividend will be payable on December 31, 2020 to shareholders of record as of the close of business on December 16, 2020, and the common stock will trade ex-dividend on December 15, 2020. 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.

Acquisition of Majority Interest in Cisneros Interactive

On October 13, 2020, the Company completed the acquisition of 51% of the issued and outstanding shares of a company engaged in the sale and marketing of digital advertising that, together with its subsidiaries, does business under the name Cisneros Interactive. The transaction, funded from the Company's cash on hand, includes a purchase price of approximately $29 million in cash.

Financial Results

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

For purposes of presentation in this table, the operating expenses line item includes direct operating and selling, general and administrative expenses. Included in operating expenses are $0.1 million of non-cash stock-based compensation for each of the three-month periods ended September 30, 2020 and 2019, and $0.4 million and $0.3 million of non-cash(2) stock-based compensation for the nine-month periods ended September 30, 2020 and 2019, respectively. Also for purposes of presentation in this table, the operating expenses line item does not include corporate expenses, foreign currency (gain) loss, depreciation and amortization, impairment charge, gain (loss) on sale of assets, gain (loss) on debt extinguishment, other income (loss) and change in fair value of contingent consideration.

Corporate expenses include $0.7 million of non-cash stock-based compensation for each of the three-month periods ended September 30, 2020(3) and 2019, and $2.0 million and $2.1 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2020 and 2019, respectively.

Consolidated adjusted EBITDA means net income (loss) plus gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation included in operating and corporate expenses, net interest expense, other operating gain (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from the Federal Communications Commission, or FCC, spectrum incentive auction less related expenses, expenses associated with investments, acquisitions and dispositions and certain pro-forma cost savings. We use(4) 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, acquisitions and dispositions and certain pro-forma cost savings.

Free cash flow is defined as consolidated adjusted EBITDA less cash paid for income taxes, net interest expense, capital expenditures and(5) non-recurring cash expenses plus dividend income, and other operating gain (loss). Net interest expense is defined as interest expense, less non-cash interest expense relating to amortization of debt finance costs, and less interest income.

Quarterly Cash Dividend

The Company announced today that its Board of Directors approved a quarterly cash dividend to shareholders of $0.025 per share on the Company's Class A, Class B and Class U common stock, in an aggregate amount of approximately $2.1 million. The quarterly dividend will be payable on December 31, 2020 to shareholders of record as of the close of business on December 16, 2020, and the common stock will trade ex-dividend on December 15, 2020. 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.

Acquisition of Majority Interest in Cisneros Interactive

On October 13, 2020, the Company completed the acquisition of 51% of the issued and outstanding shares of a company engaged in the sale and marketing of digital advertising that, together with its subsidiaries, does business under the name Cisneros Interactive. The transaction, funded from the Company's cash on hand, includes a purchase price of approximately $29 million in cash.

Financial Results

Three-Month period ended September 30, 2020 Compared to Three-Month PeriodEnded

September 30, 2019

(Unaudited)

Three-Month Period

Ended September 30,

2020 2019 % Change

Net revenue $ 62,978 $ 68,816 (8 ) %

Cost of revenue - digital media (1) 7,808 9,942 (21 ) %

Operating expenses (1) 34,061 43,264 (21 ) %

Corporate expenses (1) 6,287 6,785 (7 ) %

Depreciation and amortization 3,934 4,190 (6 ) %

Impairment charge - 9,075 (100 ) %

Foreign currency (gain) loss (680 ) 927 *

Other operating (gain) loss (2,683 ) (1,572 ) 71 %



Operating income (loss) 14,251 (3,795 ) *

Interest expense, net (1,502 ) (2,712 ) (45 ) %

Dividend income 3 241 (99 ) %



Income (loss) before income taxes 12,752 (6,266 ) *



Income tax benefit (expense) (3,736 ) (5,920 ) (37 ) %

Net income (loss) before equity in net 9,016 (12,186 ) *income (loss) of nonconsolidated affiliates

Equity in net income (loss) of - (31 ) (100 )nonconsolidated affiliates, net of tax %

Net income (loss) $ 9,016 $ (12,217 ) *

(1)

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

Net revenue decreased to $63.0 million for the three-month period ended September 30, 2020 from $68.8 million for the three-month period ended September 30, 2019, a decrease of $5.8 million. Of the overall decrease, approximately $3.9 million was attributable to our digital segment and was primarily due to declines in international revenue and the continuing economic crisis resulting from the COVID-19 pandemic. This decline in digital revenue is being driven by a trend whereby revenue is shifting more to programmatic revenue. In addition, approximately $3.3 million of the overall decrease was attributable to our radio segment and was primarily due to decreases in local and national advertising revenue, partially offset by an increase in political advertising revenue. The decrease in local and national advertising revenue was primarily a result of the continuing economic crisis resulting from the COVID-19 pandemic, ratings declines and competitive factors with other Spanish-language broadcasters, and changing demographic preferences of audiences. We have previously noted a trend for advertising to move increasingly from traditional media, such as radio, to new media, such as digital media, and we expect this trend to continue. The overall decrease was partially offset by an increase of approximately $1.4 million attributable to our television segment and was primarily due to increases in political advertising revenue and retransmission consent revenue, partially offset by decreases in revenue from spectrum usage rights and local and national advertising revenue. The decrease in local and national advertising revenue was primarily a result of the continuing economic crisis resulting from the COVID-19 pandemic, ratings declines, competitive factors with other Spanish-language broadcasters, and changing demographic preferences of audiences. We have previously noted a trend for advertising to move increasingly from traditional media, such as television, to new media, such as digital media, and we expect this trend to continue.

Cost of revenue in our digital segment decreased to $7.8 million for the three-month period ended September 30, 2020 from $9.9 million for the three-month period ended September 30, 2019, a decrease of $2.1 million, primarily due to a decrease in expenses associated with the decrease in revenue in our digital segment.

Operating expenses decreased to $34.1 million for the three-month period ended September 30, 2020 from $43.3 million for the three-month period ended September 30, 2019, a decrease of $9.2 million. The decrease was primarily due to decreases in salary expense, as a result of the company-wide reduction in salaries implemented effective April 16, 2020, and expenses associated with the decrease in advertising revenue.

Corporate expenses decreased to $6.3 million for the three-month period ended September 30, 2020 from $6.8 million for the three-month period ended September 30, 2019, a decrease of $0.5 million. The decrease was primarily due to decreases in salary expense, as a result of the company-wide reduction in salaries implemented effective April 16, 2020, and audit fees. These decreases were partially offset by expenses for legal and financial due diligence related to the acquisition of Cisneros Interactive.

Our historical revenues have primarily been denominated in U.S. dollars, and the majority of our current revenues continue to be, and are expected to remain, denominated in U.S. dollars. However, our operating expenses are generally denominated in the currencies of the countries in which our operations are located, and we have operations in countries other than the United States, primarily those operations related to our Headway business. As a result, we have operating expense, attributable to foreign currency, that is primarily related to the operations related to our Headway business. We had a foreign currency gain of $0.7 million for the three-month period ended September 30, 2020 compared to a foreign currency loss of $0.9 million for the three-month period ended September 30, 2019. Foreign currency gain was primarily due to currency fluctuations that affected our digital segment operations located outside the United States, primarily related to the Headway business.

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

Net revenue decreased to $63.0 million for the three-month period ended September 30, 2020 from $68.8 million for the three-month period ended September 30, 2019, a decrease of $5.8 million. Of the overall decrease, approximately $3.9 million was attributable to our digital segment and was primarily due to declines in international revenue and the continuing economic crisis resulting from the COVID-19 pandemic. This decline in digital revenue is being driven by a trend whereby revenue is shifting more to programmatic revenue. In addition, approximately $3.3 million of the overall decrease was attributable to our radio segment and was primarily due to decreases in local and national advertising revenue, partially offset by an increase in political advertising revenue. The decrease in local and national advertising revenue was primarily a result of the continuing economic crisis resulting from the COVID-19 pandemic, ratings declines and competitive factors with other Spanish-language broadcasters, and changing demographic preferences of audiences. We have previously noted a trend for advertising to move increasingly from traditional media, such as radio, to new media, such as digital media, and we expect this trend to continue. The overall decrease was partially offset by an increase of approximately $1.4 million attributable to our television segment and was primarily due to increases in political advertising revenue and retransmission consent revenue, partially offset by decreases in revenue from spectrum usage rights and local and national advertising revenue. The decrease in local and national advertising revenue was primarily a result of the continuing economic crisis resulting from the COVID-19 pandemic, ratings declines, competitive factors with other Spanish-language broadcasters, and changing demographic preferences of audiences. We have previously noted a trend for advertising to move increasingly from traditional media, such as television, to new media, such as digital media, and we expect this trend to continue.

Cost of revenue in our digital segment decreased to $7.8 million for the three-month period ended September 30, 2020 from $9.9 million for the three-month period ended September 30, 2019, a decrease of $2.1 million, primarily due to a decrease in expenses associated with the decrease in revenue in our digital segment.

Operating expenses decreased to $34.1 million for the three-month period ended September 30, 2020 from $43.3 million for the three-month period ended September 30, 2019, a decrease of $9.2 million. The decrease was primarily due to decreases in salary expense, as a result of the company-wide reduction in salaries implemented effective April 16, 2020, and expenses associated with the decrease in advertising revenue.

Corporate expenses decreased to $6.3 million for the three-month period ended September 30, 2020 from $6.8 million for the three-month period ended September 30, 2019, a decrease of $0.5 million. The decrease was primarily due to decreases in salary expense, as a result of the company-wide reduction in salaries implemented effective April 16, 2020, and audit fees. These decreases were partially offset by expenses for legal and financial due diligence related to the acquisition of Cisneros Interactive.

Our historical revenues have primarily been denominated in U.S. dollars, and the majority of our current revenues continue to be, and are expected to remain, denominated in U.S. dollars. However, our operating expenses are generally denominated in the currencies of the countries in which our operations are located, and we have operations in countries other than the United States, primarily those operations related to our Headway business. As a result, we have operating expense, attributable to foreign currency, that is primarily related to the operations related to our Headway business. We had a foreign currency gain of $0.7 million for the three-month period ended September 30, 2020 compared to a foreign currency loss of $0.9 million for the three-month period ended September 30, 2019. Foreign currency gain was primarily due to currency fluctuations that affected our digital segment operations located outside the United States, primarily related to the Headway business.

Nine-Month period ended September 30, 2020 Compared to Nine-Month Period Ended

September 30, 2019

(Unaudited)

Nine-Month Period

Ended September 30,

2020 2019 % Change

Net revenue $ 172,343 $ 202,737 (15 ) %

Cost of revenue - digital media (1) 21,602 26,443 (18 ) %

Operating expenses (1) 107,368 129,208 (17 ) %

Corporate expenses (1) 18,511 20,180 (8 ) %

Depreciation and amortization 12,319 12,412 (1 ) %

Change in fair value contingent - (2,376 ) (100 )consideration %

Impairment charge 39,835 31,443 27 %

Foreign currency (gain) loss 673 977 (31 ) %

Other operating (gain) loss (5,549 ) (5,165 ) 7 %



Operating income (loss) (22,416 ) (10,385 ) 116 %

Interest expense, net (5,043 ) (7,980 ) (37 ) %

Dividend income 26 747 (97 ) %



Income (loss) before income taxes (27,433 ) (17,618 ) 56 %



Income tax benefit (expense) 3,195 (9,265 ) *

Net income (loss) before equity in net )income (loss) of nonconsolidated (24,238 ) (26,883 ) (10 %affiliates

Equity in net income (loss) of - (189 ) (100 )nonconsolidated affiliates, net of tax %

Net income (loss) $ (24,238 ) $ (27,072 ) (10 ) %

(1)

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

Net revenue decreased to $172.3 million for the nine-month period ended September 30, 2020 from $202.7 million for the nine-month period ended September 30, 2019, a decrease of $30.4 million. Of the overall decrease, approximately $8.8 million was attributable to our television segment due to decreases in revenue from spectrum usage rights and local and national advertising revenue, partially offset by increases in political advertising revenue and retransmission consent revenue. The decrease in local and national advertising revenue was primarily a result of the continuing economic crisis resulting from the COVID-19 pandemic, ratings declines, competitive factors with other Spanish-language broadcasters, and changing demographic preferences of audiences. We have previously noted a trend for advertising to move increasingly from traditional media, such as television, to new media, such as digital media, and we expect this trend to continue. In addition, approximately $10.5 million of the overall decrease was attributable to our digital segment and was primarily due to declines in international revenue and the continuing economic crisis resulting from the COVID-19 pandemic. This decline in digital revenue is being driven by a trend whereby revenue is shifting more to programmatic revenue. In addition, approximately $11.1 million of the overall decrease was attributable to our radio segment and was primarily due to decreases in local and national advertising revenue, partially offset by an increase in political advertising revenue. The decrease in local and national advertising revenue was primarily a result of the continuing economic crisis resulting from the COVID-19 pandemic, ratings declines and competitive factors with other Spanish-language broadcasters, and changing demographic preferences of audiences. We have previously noted a trend for advertising to move increasingly from traditional media, such as radio, to new media, such as digital media, and we expect this trend to continue.

Cost of revenue in our digital segment decreased to $21.6 million for the nine-month period ended September 30, 2020 from $26.4 million for the nine-month period ended September 30, 2019, a decrease of $4.8 million, primarily due to a decrease in expenses associated with the decrease in revenue in our digital segment.

Operating expenses decreased to $107.4 million for the nine-month period ended September 30, 2020 from $129.2 million for the nine-month period ended September 30, 2019, a decrease of $21.8 million. The decrease was primarily due to decreases in salary expense, as a result of the company-wide reduction in salaries implemented effective April 16, 2020, and expenses associated with the decrease in advertising revenue.

Corporate expenses decreased to $18.5 million for the nine-month period ended September 30, 2020 from $20.2 million for the nine-month period ended September 30, 2019, a decrease of $1.7 million. The decrease was primarily due to decreases in salary expense, as a result of the company-wide reduction in salaries implemented effective April 16, 2020, and audit fees. These decreases were partially offset by expenses for legal and financial due diligence related to the acquisition of Cisneros Interactive.

Impairment charge related to certain FCC licenses in our television and radio reporting units was $23.5 and $8.8 million, respectively, for the nine-month period ended September 30, 2020. Impairment charge related to goodwill in our digital reporting unit was $0.8 million for the nine-month period ended September 30, 2020. Impairment charges related to intangibles subject to amortization and property and equipment in our digital reporting unit was $5.3 million and $1.5 million, respectively, for the nine-month period ended September 30, 2020.

Our historical revenues have primarily been denominated in U.S. dollars, and the majority of our current revenues continue to be, and are expected to remain, denominated in U.S. dollars. However, our operating expenses are generally denominated in the currencies of the countries in which our operations are located, and we have operations in countries other than the United States, primarily those operations related to our Headway business. As a result, we have operating expense, attributable to foreign currency, which is primarily related to the operations related to our Headway business. We had a foreign currency loss of $0.7 million for the nine-month period ended September 30, 2020 compared to a foreign currency loss of $1.0 million for the nine-month period ended September 30, 2019. Foreign currency loss was primarily due to currency fluctuations that affected our digital segment operations located outside the United States, primarily those related to the Headway business.

Segment Results

The following represents selected unaudited segment information:

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

Net revenue decreased to $172.3 million for the nine-month period ended September 30, 2020 from $202.7 million for the nine-month period ended September 30, 2019, a decrease of $30.4 million. Of the overall decrease, approximately $8.8 million was attributable to our television segment due to decreases in revenue from spectrum usage rights and local and national advertising revenue, partially offset by increases in political advertising revenue and retransmission consent revenue. The decrease in local and national advertising revenue was primarily a result of the continuing economic crisis resulting from the COVID-19 pandemic, ratings declines, competitive factors with other Spanish-language broadcasters, and changing demographic preferences of audiences. We have previously noted a trend for advertising to move increasingly from traditional media, such as television, to new media, such as digital media, and we expect this trend to continue. In addition, approximately $10.5 million of the overall decrease was attributable to our digital segment and was primarily due to declines in international revenue and the continuing economic crisis resulting from the COVID-19 pandemic. This decline in digital revenue is being driven by a trend whereby revenue is shifting more to programmatic revenue. In addition, approximately $11.1 million of the overall decrease was attributable to our radio segment and was primarily due to decreases in local and national advertising revenue, partially offset by an increase in political advertising revenue. The decrease in local and national advertising revenue was primarily a result of the continuing economic crisis resulting from the COVID-19 pandemic, ratings declines and competitive factors with other Spanish-language broadcasters, and changing demographic preferences of audiences. We have previously noted a trend for advertising to move increasingly from traditional media, such as radio, to new media, such as digital media, and we expect this trend to continue.

Cost of revenue in our digital segment decreased to $21.6 million for the nine-month period ended September 30, 2020 from $26.4 million for the nine-month period ended September 30, 2019, a decrease of $4.8 million, primarily due to a decrease in expenses associated with the decrease in revenue in our digital segment.

Operating expenses decreased to $107.4 million for the nine-month period ended September 30, 2020 from $129.2 million for the nine-month period ended September 30, 2019, a decrease of $21.8 million. The decrease was primarily due to decreases in salary expense, as a result of the company-wide reduction in salaries implemented effective April 16, 2020, and expenses associated with the decrease in advertising revenue.

Corporate expenses decreased to $18.5 million for the nine-month period ended September 30, 2020 from $20.2 million for the nine-month period ended September 30, 2019, a decrease of $1.7 million. The decrease was primarily due to decreases in salary expense, as a result of the company-wide reduction in salaries implemented effective April 16, 2020, and audit fees. These decreases were partially offset by expenses for legal and financial due diligence related to the acquisition of Cisneros Interactive.

Impairment charge related to certain FCC licenses in our television and radio reporting units was $23.5 and $8.8 million, respectively, for the nine-month period ended September 30, 2020. Impairment charge related to goodwill in our digital reporting unit was $0.8 million for the nine-month period ended September 30, 2020. Impairment charges related to intangibles subject to amortization and property and equipment in our digital reporting unit was $5.3 million and $1.5 million, respectively, for the nine-month period ended September 30, 2020.

Our historical revenues have primarily been denominated in U.S. dollars, and the majority of our current revenues continue to be, and are expected to remain, denominated in U.S. dollars. However, our operating expenses are generally denominated in the currencies of the countries in which our operations are located, and we have operations in countries other than the United States, primarily those operations related to our Headway business. As a result, we have operating expense, attributable to foreign currency, which is primarily related to the operations related to our Headway business. We had a foreign currency loss of $0.7 million for the nine-month period ended September 30, 2020 compared to a foreign currency loss of $1.0 million for the nine-month period ended September 30, 2019. Foreign currency loss was primarily due to currency fluctuations that affected our digital segment operations located outside the United States, primarily those related to the Headway business.

Segment Results

The following represents selected unaudited segment information:

Three-Month Period Nine-Month Period

Ended September 30, Ended September 30,

2020 2019 % 2020 2019 % Change Change

Net Revenue

Television $ 37,786 $ 36,421 4 % $ 103,940 $ 112,745 (8 ) %

Digital 13,655 17,612 (22 ) 38,359 48,888 (22 ) % %

Radio 11,537 14,783 (22 ) 30,044 41,104 (27 ) % %

Total $ 62,978 $ 68,816 (8 ) $ 172,343 $ 202,737 (15 ) % %



Cost of Revenue- digital media (1)

Digital $ 7,808 $ 9,942 (21 ) $ 21,602 $ 26,443 (18 ) % %



Operating Expenses (1)

Television 18,978 21,158 (10 ) 58,471 62,690 (7 ) % %

Digital 5,383 7,965 (32 ) 18,403 24,170 (24 ) % %

Radio 9,700 14,141 (31 ) 30,494 42,348 (28 ) % %

Total $ 34,061 $ 43,264 (21 ) $ 107,368 $ 129,208 (17 ) % %



Corporate $ 6,287 $ 6,785 (7 ) $ 18,511 $ 20,180 (8 )Expenses (1) % %



Consolidated )adjusted EBITDA $ 16,371 $ 9,142 79 % $ 27,773 $ 29,778 (7 %(1)

(1)

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

Notice of Conference Call

Entravision Communications Corporation will hold a conference call to discuss its 2020 third quarter results on November 5, 2020 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 13711551. 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 marketing, technology, and media company serving clients throughout the United States and in more than 20 countries across Latin America, Europe, and Asia. Our dynamic portfolio of services includes cutting-edge, proprietary marketing technologies and platforms, along with leading media and marketing audience-centric assets in the U.S., including 54 television stations and 48 Spanish-language radio stations that feature nationally recognized, award-winning talent. Entravision is the largest affiliate group of the Univision and UniMs television networks. In addition to broadcast, we offer mobile programmatic solutions and demand-side platforms, which allow advertisers to execute performance campaigns using machine-learned bidding algorithms to identify the ideal combination of creative assets, audience targeting, and pricing. 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 marketing, media, 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 1.

Notice of Conference Call

Entravision Communications Corporation will hold a conference call to discuss its 2020 third quarter results on November 5, 2020 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 13711551. 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 marketing, technology, and media company serving clients throughout the United States and in more than 20 countries across Latin America, Europe, and Asia. Our dynamic portfolio of services includes cutting-edge, proprietary marketing technologies and platforms, along with leading media and marketing audience-centric assets in the U.S., including 54 television stations and 48 Spanish-language radio stations that feature nationally recognized, award-winning talent. Entravision is the largest affiliate group of the Univision and UniMs television networks. In addition to broadcast, we offer mobile programmatic solutions and demand-side platforms, which allow advertisers to execute performance campaigns using machine-learned bidding algorithms to identify the ideal combination of creative assets, audience targeting, and pricing. 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 marketing, media, and technology offerings at entravision.com or connect with us on LinkedIn and Facebook.

Forward Looking Statements

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

(Financial Table Follows)

Entravision Communications Corporation

Consolidated Balance Sheets

(In thousands; unaudited)

September December 31, 30,

2020 2019

ASSETS

Current assets

Cash and cash equivalents $ 83,284 $ 33,123

Marketable securities 53,208 91,662

Restricted cash 735 734

Trade receivables, net of allowance for doubtful 58,865 71,406 accounts

Assets held for sale 2,141 950

Prepaid expenses and other current assets 13,881 11,557

Total current assets 212,114 209,432

Property and equipment, net 73,215 79,642

Intangible assets subject to amortization, net 9,307 16,772

Intangible assets not subject to amortization 216,853 252,544

Goodwill 45,711 46,511

Operating leases right of use asset 34,394 43,837

Other assets 7,784 7,462

Total assets $ 599,378 $ 656,200





LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

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

Accounts payable and accrued expenses 40,711 53,931

Operating lease liabilities 7,563 9,056

Total current liabilities 51,274 65,987

Long-term debt, less current maturities, net of 211,095 213,024 unamortized debt issuance costs

Long-term operating lease liabilities 32,378 41,387

Other long-term liabilities 3,862 3,371

Deferred income taxes 43,229 44,259

Total liabilities 341,838 368,028



Stockholders' equity

Class A common stock 6 6

Class B common stock 2 2

Class U common stock 1 1

Additional paid-in capital 829,610 836,170

Accumulated deficit (572,114 ) (547,876 )

Accumulated other comprehensive income (loss) 35 (131 )

Total stockholders' equity 257,540 288,172

Total liabilities and stockholders' equity $ 599,378 $ 656,200

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,

2020

2019

2020

2019

Net revenue

$

62,978

$

68,816

$

172,343

$

202,737

Expenses:

Cost of revenue - digital media

7,808

9,942

21,602

26,443

Direct operating expenses

24,178

30,807

72,997

89,392

Selling, general and administrative expenses

9,883

12,457

34,371

39,816

Corporate expenses

6,287

6,785

18,511

20,180

Depreciation and amortization

3,934

4,190

12,319

12,412

Change in fair value contingent consideration

-

-

-

(2,376

)

Impairment charge

-

9,075

39,835

31,443

Foreign currency (gain) loss

(680

)

927

673

977

Other operating (gain) loss

(2,683

)

(1,572

)

(5,549

)

(5,165

)

48,727

72,611

194,759

213,122

Operating income (loss)

14,251

(3,795

)

(22,416

)

(10,385

)

Interest expense

(1,969

)

(3,537

)

(6,673

)

(10,581

)

Interest income

467

825

1,630

2,601

Dividend income

3

241

26

747

Income (loss) before income taxes

12,752

(6,266

)

(27,433

)

(17,618

)

Income tax benefit (expense)

(3,736

)

(5,920

)

3,195

(9,265

)

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

9,016

(12,186

)

(24,238

)

(26,883

)

Equity in net income (loss) of nonconsolidated affiliate, net of tax

-

(31

)

-

(189

)

Net income (loss)

$

9,016

$

(12,217

)

$

(24,238

)

$

(27,072

)

Basic and diluted earnings per share:

Net income (loss) per share, basic and diluted

$

0.11

$

(0.14

)

$

(0.29

)

$

(0.32

)

Cash dividends declared per common share

$

0.03

$

0.05

$

0.10

$

0.15

Weighted average common shares outstanding, basic

84,185,728

84,765,694

84,208,924

85,404,250

Weighted average common shares outstanding, diluted

84,863,020

84,765,694

84,208,924

85,404,250

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,

2020 2019 2020 2019

Net revenue $ 62,978 $ 68,816 $ 172,343 $ 202,737



Expenses:

Cost of revenue 7,808 9,942 21,602 26,443 - digital media

Directoperating 24,178 30,807 72,997 89,392 expenses

Selling,general and 9,883 12,457 34,371 39,816 administrativeexpenses

Corporate 6,287 6,785 18,511 20,180 expenses

Depreciationand 3,934 4,190 12,319 12,412 amortization

Change in fairvalue - - - (2,376 )contingentconsideration

Impairment - 9,075 39,835 31,443 charge

Foreigncurrency (gain) (680 ) 927 673 977 loss

Other operating (2,683 ) (1,572 ) (5,549 ) (5,165 )(gain) loss

48,727 72,611 194,759 213,122

Operating 14,251 (3,795 ) (22,416 ) (10,385 )income (loss)

Interest (1,969 ) (3,537 ) (6,673 ) (10,581 )expense

Interest income 467 825 1,630 2,601

Dividend income 3 241 26 747

Income (loss)before income 12,752 (6,266 ) (27,433 ) (17,618 )taxes

Income taxbenefit (3,736 ) (5,920 ) 3,195 (9,265 )(expense)



Income (loss)before equityin net income 9,016 (12,186 ) (24,238 ) (26,883 )(loss) ofnonconsolidatedaffiliate

Equity in netincome (loss)of - (31 ) - (189 )nonconsolidatedaffiliate, netof tax

Net income $ 9,016 $ (12,217 ) $ (24,238 ) $ (27,072 )(loss)



Basic anddiluted earnings pershare:

Net income(loss) per $ 0.11 $ (0.14 ) $ (0.29 ) $ (0.32 )share, basicand diluted



Cash dividendsdeclared per $ 0.03 $ 0.05 $ 0.10 $ 0.15 common share



Weightedaverage commonshares 84,185,728 84,765,694 84,208,924 85,404,250 outstanding,basic

Weightedaverage commonshares 84,863,020 84,765,694 84,208,924 85,404,250 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,

2020

2019

2020

2019

Cash flows from operating activities:

Net income (loss)

$

9,016

$

(12,217

)

$

(24,238

)

$

(27,072

)

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

Depreciation and amortization

3,934

4,190

12,319

12,412

Impairment charge

-

9,075

39,835

31,443

Deferred income taxes

(1,346

)

5,469

(8,744

)

6,941

Non-cash interest

159

226

491

715

Amortization of syndication contracts

125

125

383

374

Payments on syndication contracts

(72

)

(192

)

(325

)

(419

)

Equity in net (income) loss of nonconsolidated affiliate

-

31

-

189

Non-cash stock-based compensation

816

819

2,408

2,454

(Gain) loss on disposal of property and equipment

(140

)

(3

)

(767

)

158

Changes in assets and liabilities:

(Increase) decrease in accounts receivable

(5,228

)

1,084

14,285

10,703

(Increase) decrease in prepaid expenses and other assets

1,623

(3,524

)

6,713

(844

)

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

(2,633

)

(1,267

)

(16,643

)

(13,568

)

Net cash provided by operating activities

6,254

3,816

25,717

23,486

Cash flows from investing activities:

Proceeds from sale of property and equipment and intangibles

1,100

-

5,089

-

Purchases of property and equipment

(2,065

)

(7,200

)

(7,741

)

(21,182

)

Purchases of intangible assets

-

-

(158

)

-

Purchases of marketable securities

-

(240

)

-

(1,400

)

Proceeds from marketable securities

11,620

6,200

38,480

27,881

Purchases of investments

-

-

-

(300

)

Deposits on acquisition

-

(147

)

-

(147

)

Net cash provided by (used in) investing activities

10,655

(1,387

)

35,670

4,852

Cash flows from financing activities:

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

-

(22

)

(15

)

(773

)

Payments on long-term debt

(750

)

(750

)

(2,250

)

(2,250

)

Dividends paid

(2,106

)

(4,227

)

(8,428

)

(12,767

)

Repurchase of Class A common stock

-

(1,349

)

(525

)

(10,357

)

Payments of capitalized debt costs

-

-

-

(225

)

Net cash used in financing activities

(2,856

)

(6,348

)

(11,218

)

(26,372

)

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

(39

)

(5

)

(7

)

8

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

14,014

(3,924

)

50,162

1,974

Cash, cash equivalents and restricted cash:

Beginning

70,005

53,363

33,857

47,465

Ending

$

84,019

$

49,439

$

84,019

$

49,439

Entravision Communications Corporation

Consolidated Statements of Cash Flows

(In thousands; unaudited)

Three-Month Period Nine-Month Period

Ended September 30, Ended September 30,

2020 2019 2020 2019

Cash flows from operating activities:

Net income (loss) $ 9,016 $ (12,217 ) $ (24,238 ) $ (27,072 )

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

Depreciation and 3,934 4,190 12,319 12,412 amortization

Impairment charge - 9,075 39,835 31,443

Deferred income taxes (1,346 ) 5,469 (8,744 ) 6,941

Non-cash interest 159 226 491 715

Amortization of 125 125 383 374 syndication contracts

Payments on syndication (72 ) (192 ) (325 ) (419 )contracts

Equity in net (income)loss of nonconsolidated - 31 - 189 affiliate

Non-cash stock-based 816 819 2,408 2,454 compensation

(Gain) loss on disposalof property and (140 ) (3 ) (767 ) 158 equipment

Changes in assets and liabilities:

(Increase) decrease in (5,228 ) 1,084 14,285 10,703 accounts receivable

(Increase) decrease inprepaid expenses and 1,623 (3,524 ) 6,713 (844 )other assets

Increase (decrease) inaccounts payable, (2,633 ) (1,267 ) (16,643 ) (13,568 )accrued expenses andother liabilities

Net cash provided by 6,254 3,816 25,717 23,486 operating activities

Cash flows from investing activities:

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

Purchases of property (2,065 ) (7,200 ) (7,741 ) (21,182 )and equipment

Purchases of intangible - - (158 ) - assets

Purchases of marketable - (240 ) - (1,400 )securities

Proceeds from marketable 11,620 6,200 38,480 27,881 securities

Purchases of investments - - - (300 )

Deposits on acquisition - (147 ) - (147 )

Net cash provided by(used in) investing 10,655 (1,387 ) 35,670 4,852 activities

Cash flows from financing activities:

Tax payments related toshares withheld for - (22 ) (15 ) (773 )share-based compensationplans

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

Dividends paid (2,106 ) (4,227 ) (8,428 ) (12,767 )

Repurchase of Class A - (1,349 ) (525 ) (10,357 )common stock

Payments of capitalized - - - (225 )debt costs

Net cash used in (2,856 ) (6,348 ) (11,218 ) (26,372 )financing activities

Effect of exchange rateson cash, cash (39 ) (5 ) (7 ) 8 equivalents andrestricted cash

Net increase (decrease)in cash, cash 14,014 (3,924 ) 50,162 1,974 equivalents andrestricted cash

Cash, cash equivalents and restricted cash:

Beginning 70,005 53,363 33,857 47,465

Ending $ 84,019 $ 49,439 $ 84,019 $ 49,439

Entravision Communications Corporation

Reconciliation of Consolidated Adjusted EBITDA to Cash Flows From Operating Activities

(In thousands; unaudited)

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

Three-Month Period

Nine-Month Period

Ended September 30,

Ended September 30,

2020

2019

2020

2019

Consolidated adjusted EBITDA (1)

$

16,371

$

9,142

$

27,773

$

29,778

Interest expense

(1,969

)

(3,537

)

(6,673

)

(10,581

)

Interest income

467

825

1,630

2,601

Dividend income

3

241

26

747

Income tax expense

(3,736

)

(5,920

)

3,195

(9,265

)

Equity in net loss of nonconsolidated affiliates

-

(31

)

-

(189

)

Amortization of syndication contracts

(125

)

(125

)

(383

)

(374

)

Payments on syndication contracts

72

192

325

419

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

(148

)

(74

)

(383

)

(324

)

Non-cash stock-based compensation included in corporate expenses

(668

)

(745

)

(2,025

)

(2,130

)

Depreciation and amortization

(3,934

)

(4,190

)

(12,319

)

(12,412

)

Change in fair value contingent consideration

-

-

-

2,376

Impairment charge

-

(9,075

)

(39,835

)

(31,443

)

Non-recurring cash severance charge

-

(492

)

(1,118

)

(1,440

)

Other operating gain (loss)

2,683

1,572

5,549

5,165

Net income (loss)

9,016

(12,217

)

(24,238

)

(27,072

)

Depreciation and amortization

3,934

4,190

12,319

12,412

Impairment charge

-

9,075

39,835

31,443

Deferred income taxes

(1,346

)

5,469

(8,744

)

6,941

Non-cash interest

159

226

491

715

Amortization of syndication contracts

125

125

383

374

Payments on syndication contracts

(72

)

(192

)

(325

)

(419

)

Equity in net (income) loss of nonconsolidated affiliate

-

31

-

189

Non-cash stock-based compensation

816

819

2,408

2,454

(Gain) loss on disposal of property and equipment

(140

)

(3

)

(767

)

158

Changes in assets and liabilities:

(Increase) decrease in accounts receivable

(5,228

)

1,084

14,285

10,703

(Increase) decrease in prepaid expenses and other assets

1,623

(3,524

)

6,713

(844

)

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

(2,633

)

(1,267

)

(16,643

)

(13,568

)

Cash flows from operating activities

6,254

3,816

25,717

23,486

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 Nine-Month Period

Ended September 30, Ended September 30,

2020 2019 2020 2019



Consolidated adjusted $ 16,371 $ 9,142 $ 27,773 $ 29,778 EBITDA (1)



Interest expense (1,969 ) (3,537 ) (6,673 ) (10,581 )

Interest income 467 825 1,630 2,601

Dividend income 3 241 26 747

Income tax expense (3,736 ) (5,920 ) 3,195 (9,265 )

Equity in net loss ofnonconsolidated - (31 ) - (189 )affiliates

Amortization of (125 ) (125 ) (383 ) (374 )syndication contracts

Payments on syndication 72 192 325 419 contracts

Non-cash stock-basedcompensation included in (148 ) (74 ) (383 ) (324 )direct operatingexpenses

Non-cash stock-basedcompensation included in (668 ) (745 ) (2,025 ) (2,130 )corporate expenses

Depreciation and (3,934 ) (4,190 ) (12,319 ) (12,412 )amortization

Change in fair value - - - 2,376 contingent consideration

Impairment charge - (9,075 ) (39,835 ) (31,443 )

Non-recurring cash - (492 ) (1,118 ) (1,440 )severance charge

Other operating gain 2,683 1,572 5,549 5,165 (loss)

Net income (loss) 9,016 (12,217 ) (24,238 ) (27,072 )



Depreciation and 3,934 4,190 12,319 12,412 amortization

Impairment charge - 9,075 39,835 31,443

Deferred income taxes (1,346 ) 5,469 (8,744 ) 6,941

Non-cash interest 159 226 491 715

Amortization of 125 125 383 374 syndication contracts

Payments on syndication (72 ) (192 ) (325 ) (419 )contracts

Equity in net (income)loss of nonconsolidated - 31 - 189 affiliate

Non-cash stock-based 816 819 2,408 2,454 compensation

(Gain) loss on disposalof property and (140 ) (3 ) (767 ) 158 equipment

Changes in assets and liabilities:

(Increase) decrease in (5,228 ) 1,084 14,285 10,703 accounts receivable

(Increase) decrease inprepaid expenses and 1,623 (3,524 ) 6,713 (844 )other assets

Increase (decrease) inaccounts payable, (2,633 ) (1,267 ) (16,643 ) (13,568 )accrued expenses andother liabilities

Cash flows from 6,254 3,816 25,717 23,486 operating activities

(1)

Consolidated adjusted EBITDA is defined on page 1.

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

Entravision Communications Corporation

Reconciliation of Free Cash Flow to Cash Flows From Operating Activities

(In thousands; unaudited)

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

Three-Month Period

Nine-Month Period

Ended September 30,

Ended September 30,

2020

2019

2020

2019

Consolidated adjusted EBITDA (1)

$

16,371

$

9,142

$

27,773

$

29,778

Net interest expense (1)

(1,343

)

(2,486

)

(4,552

)

(7,265

)

Dividend income

3

241

26

747

Cash paid for income taxes

(5,082

)

(451

)

(5,549

)

(2,324

)

Capital expenditures (2)

(2,065

)

(7,200

)

(7,741

)

(21,182

)

Non-recurring cash severance charge

-

(492

)

(1,118

)

(1,440

)

Other operating gain (loss)

2,683

1,572

5,549

5,165

Free cash flow (1)

10,567

326

14,388

3,479

Capital expenditures (2)

2,065

7,200

7,741

21,182

Change in fair value of contingent consideration

-

-

-

2,376

(Gain) loss on disposal of property and equipment

(140

)

(3

)

(767

)

158

Changes in assets and liabilities:

(Increase) decrease in accounts receivable

(5,228

)

1,084

14,285

10,703

(Increase) decrease in prepaid expenses and other assets

1,623

(3,524

)

6,713

(844

)

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

(2,633

)

(1,267

)

(16,643

)

(13,568

)

Cash Flows From Operating Activities

$

6,254

$

3,816

$

25,717

$

23,486

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 Nine-Month Period

Ended September 30, Ended September 30,

2020 2019 2020 2019

Consolidated adjusted $ 16,371 $ 9,142 $ 27,773 $ 29,778 EBITDA (1)

Net interest expense (1) (1,343 ) (2,486 ) (4,552 ) (7,265 )

Dividend income 3 241 26 747

Cash paid for income (5,082 ) (451 ) (5,549 ) (2,324 )taxes

Capital expenditures (2) (2,065 ) (7,200 ) (7,741 ) (21,182 )

Non-recurring cash - (492 ) (1,118 ) (1,440 )severance charge

Other operating gain 2,683 1,572 5,549 5,165 (loss)

Free cash flow (1) 10,567 326 14,388 3,479



Capital expenditures (2) 2,065 7,200 7,741 21,182

Change in fair value of - - - 2,376 contingent consideration

(Gain) loss on disposal (140 ) (3 ) (767 ) 158 of property and equipment

Changes in assets and liabilities:

(Increase) decrease in (5,228 ) 1,084 14,285 10,703 accounts receivable

(Increase) decrease inprepaid expenses and 1,623 (3,524 ) 6,713 (844 )other assets

Increase (decrease) inaccounts payable, accrued (2,633 ) (1,267 ) (16,643 ) (13,568 )expenses and otherliabilities

Cash Flows From Operating $ 6,254 $ 3,816 $ 25,717 $ 23,486 Activities

(1)

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

(2)

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

View source version on businesswire.com: https://www.businesswire.com/news/home/20201105005934/en/

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

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