Attached files
| file | filename |
|---|---|
| 8-K - 8-K - ENTRAVISION COMMUNICATIONS CORP | d623693d8k.htm |
Exhibit 99.1
ENTRAVISION COMMUNICATIONS CORPORATION REPORTS
THIRD QUARTER 2013 RESULTS
SANTA MONICA, CALIFORNIA, November 6, 2013 – Entravision Communications Corporation (NYSE: EVC) today reported financial results for the three- and nine-month periods ended September 30, 2013.
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 8. Unaudited financial highlights are as follows:
| Three-Month Period | Nine-Month Period | |||||||||||||||||||||||
| Ended September 30, | Ended September 30, | |||||||||||||||||||||||
| 2013 | 2012 | % Change | 2013 | 2012 | % Change | |||||||||||||||||||
| Net revenue |
$ | 57,786 | $ | 58,486 | (1 | )% | $ | 163,823 | $ | 159,501 | 3 | % | ||||||||||||
| Operating expenses (1) |
33,991 | 32,886 | 3 | % | 99,311 | 96,403 | 3 | % | ||||||||||||||||
| Corporate expenses (2) |
5,011 | 4,465 | 12 | % | 14,244 | 12,527 | 14 | % | ||||||||||||||||
| Consolidated adjusted EBITDA (3) |
19,864 | 21,640 | (8 | )% | 53,241 | 51,521 | 3 | % | ||||||||||||||||
| Free cash flow (4) |
$ | 11,919 | $ | 10,545 | 13 | % | $ | 25,552 | $ | 19,209 | 33 | % | ||||||||||||
| Free cash flow per share, basic and diluted (4) |
$ | 0.14 | $ | 0.12 | 17 | % | $ | 0.29 | $ | 0.22 | 32 | % | ||||||||||||
| Net income (loss) applicable to common stockholders |
$ | (21,384 | ) | $ | 7,233 | NM | $ | (17,268 | ) | $ | 5,904 | NM | ||||||||||||
| Net income (loss) per share applicable to common stockholders, basic and diluted |
$ | (0.24 | ) | $ | 0.08 | NM | $ | (0.20 | ) | $ | 0.07 | NM | ||||||||||||
| Weighted average common shares outstanding, basic |
87,959,856 | 85,940,225 | 87,170,106 | 85,861,671 | ||||||||||||||||||||
| Weighted average common shares outstanding, diluted |
87,959,856 | 86,386,655 | 87,170,106 | 86,220,868 | ||||||||||||||||||||
| (1) | Operating expenses include direct operating, selling, general and administrative expenses. Included in operating expenses are $0.3 million of non-cash stock-based compensation for each of the three-month periods ended September 30, 2013 and 2012, and $0.8 million and $0.6 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2013 and 2012, respectively. Operating expenses do not include corporate expenses, depreciation and amortization, impairment charge, gain (loss) on sale of assets, gain (loss) on debt extinguishment and other income (loss). |
| (2) | Corporate expenses include $1.0 million and $0.5 million of non-cash stock-based compensation for the three-month periods ended September 30, 2013 and 2012, respectively, and $2.7 million and $1.1 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2013 and 2012, respectively. |
| (3) | 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 income (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses and syndication programming amortization less syndication programming payments. We use the term consolidated adjusted EBITDA because that measure is defined in our 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 and syndication programming amortization and does include syndication programming payments. While many in the financial community and we consider consolidated adjusted EBITDA to be important, it should be considered in addition to, but not as a substitute for or superior to, other measures of liquidity and financial performance prepared in accordance with accounting principles generally accepted in the United States of America, such as cash flows from operating activities, operating income and net income. As consolidated adjusted EBITDA excludes non-cash gain (loss) on sale of assets, non-cash depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation expense, 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 and syndication programming amortization and includes syndication programming payments, consolidated adjusted EBITDA has certain limitations because it excludes and includes several important non-cash financial line items. Therefore, we consider both non-GAAP and GAAP measures when evaluating our business. Consolidated adjusted EBITDA is also used to make executive compensation decisions. |
| (4) | Free cash flow is defined as consolidated adjusted EBITDA less cash paid for income taxes, net interest expense, and capital expenditures. Net interest expense is defined as interest expense, less non-cash interest expense relating to amortization of debt finance costs, less non-cash interest expense relating to discount amortization on our $324 million aggregate principal amount of 8.750% senior secured first lien notes (the “Notes”), and less interest income. Free cash flow per share is defined as free cash flow divided by the basic or diluted weighted average common shares outstanding. |
Entravision Communications
Page 2 of 9
Commenting on the Company’s earnings results, Walter F. Ulloa, Chairman and Chief Executive Officer, said, “During the third quarter, we recorded continued growth in core advertising revenue (excluding retransmission consent revenue and political advertising revenue) as both our television and radio segments outperformed their respective industry averages. Our improved core revenue performance was offset by decreased political revenue, which benefited from the presidential election last year, and was not material in 2013. As a result, net revenue was off modestly in the quarter; however, we improved our free cash flow over the third quarter of 2012 as we benefited from the successful refinancing of our debt. Our audience shares remain strong in the nation’s most densely populated Hispanic markets, and we believe we are well positioned to benefit as the U.S. Hispanic market continues to expand and advertisers increasingly recognize the importance of reaching our target audience.”
Financial Results
Three-Month Period Ended September 30, 2013 Compared to Three-Month Period Ended
September 30, 2012
(Unaudited)
| Three-Month Period | ||||||||||||
| Ended September 30, | ||||||||||||
| 2013 | 2012 | % Change | ||||||||||
| Net revenue |
$ | 57,786 | $ | 58,486 | (1 | )% | ||||||
| Operating expenses (1) |
33,991 | 32,886 | 3 | % | ||||||||
| Corporate expenses (1) |
5,011 | 4,465 | 12 | % | ||||||||
| Depreciation and amortization |
3,613 | 4,013 | (10 | )% | ||||||||
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| Operating income (loss) |
15,171 | 17,122 | (11 | )% | ||||||||
| Interest expense, net |
(5,340 | ) | (8,661 | ) | (38 | )% | ||||||
| Gain (loss) on debt extinguishment |
(29,404 | ) | — | NM | ||||||||
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| Income (loss) before income taxes |
(19,573 | ) | 8,461 | NM | ||||||||
| Income tax (expense) benefit |
(1,811 | ) | (1,228 | ) | 47 | % | ||||||
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| Net income (loss) |
$ | (21,384 | ) | $ | 7,233 | NM | ||||||
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| (1) | Operating expenses and corporate expenses are defined on page 1. |
Net revenue decreased to $57.8 million for the three-month period ended September 30, 2013 from $58.5 million for the three-month period ended September 30, 2012, a decrease of $0.7 million. Of the overall decrease, $1.2 million was generated by our television segment and was primarily attributable to a decrease in political advertising revenue, which was not material in 2013, partially offset by increases in local advertising revenue and retransmission consent revenue. This decrease was partially offset by a $0.5 million increase that was generated by our radio segment and was primarily attributable to an increase in local advertising revenue, partially offset by a decrease in political advertising revenue, which was not material in 2013.
Operating expenses increased to $34.0 million for the three-month period ended September 30, 2013 from $32.9 million for the three-month period ended September 30, 2012, an increase of $1.1 million. The increase was primarily attributable to an increase in salary expense and an increase in expenses associated with the increase in local advertising revenue.
Corporate expenses increased to $5.0 million for the three-month period ended September 30, 2013 from $4.5 million for the three-month period ended September 30, 2012, an increase of $0.5 million. The increase was primarily attributable to an increase in non-cash stock-based compensation expense.
During the three-month period ended September 30, 2013, we recorded a loss on debt extinguishment of $29.4 million related to the premium associated with the redemption of our Notes, the unamortized bond discount, and finance costs.
Entravision Communications
Page 3 of 9
Nine-Month Period Ended September 30, 2013 Compared to Nine-Month Period Ended
September 30, 2012
(Unaudited)
| Nine-Month Period | ||||||||||||
| Ended September 30, | ||||||||||||
| 2013 | 2012 | % Change | ||||||||||
| Net revenue |
$ | 163,823 | $ | 159,501 | 3 | % | ||||||
| Operating expenses (1) |
99,311 | 96,403 | 3 | % | ||||||||
| Corporate expenses (1) |
14,244 | 12,527 | 14 | % | ||||||||
| Depreciation and amortization |
11,388 | 12,436 | (8 | )% | ||||||||
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| Operating income (loss) |
38,880 | 38,135 | 2 | % | ||||||||
| Interest expense, net |
(20,989 | ) | (26,707 | ) | (21 | )% | ||||||
| Gain (loss) on debt extinguishment |
(29,534 | ) | (1,230 | ) | NM | |||||||
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| Income (loss) before income taxes |
(11,643 | ) | 10,198 | NM | ||||||||
| Income tax (expense) benefit |
(5,625 | ) | (4,294 | ) | 31 | % | ||||||
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| Net income (loss) |
$ | (17,268 | ) | $ | 5,904 | NM | ||||||
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| (1) | Operating expenses and corporate expenses are defined on page 1. |
Net revenue increased to $163.8 million for the nine-month period ended September 30, 2013 from $159.5 million for the nine-month period ended September 30, 2012, an increase of $4.3 million. Of the overall increase, $2.8 million was generated by our television segment and was primarily attributable to increases in local and national advertising revenue, and retransmission consent revenue, partially offset by a decrease in political advertising revenue, which was not material in 2013. Additionally, $1.5 million of the overall increase was generated by our radio segment and was primarily attributable to increases in local and national advertising revenue, partially offset by a decrease in political advertising revenue, which was not material in 2013.
Operating expenses increased to $99.3 million for the nine-month period ended September 30, 2013 from $96.4 million for the nine-month period ended September 30, 2012, an increase of $2.9 million. The increase was primarily attributable to an increase in expenses associated with the increase in net revenue and an increase in salary expense, partially offset by a decrease in bad debt expense.
Corporate expenses increased to $14.2 million for the nine-month period ended September 30, 2013 from $12.5 million for the nine-month period ended September 30, 2012, an increase of $1.7 million. The increase was primarily attributable to an increase in non-cash stock-based compensation expense.
Loss on debt extinguishment increased to $29.5 million for the nine-month period ended September 30, 2013 from $1.2 million for the nine-month period ended September 30, 2012, an increase of $28.3 million. The increase was primarily attributable to the premium associated with the redemption of our Notes, the unamortized bond discount, and finance costs.
Entravision Communications
Page 4 of 9
Segment Results
The following represents selected unaudited segment information:
| Three-Month Period | Nine-Month Period | |||||||||||||||||||||||
| Ended September 30, | Ended September 30, | |||||||||||||||||||||||
| 2013 | 2012 | % Change | 2013 | 2012 | % Change | |||||||||||||||||||
| Net Revenue |
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| Television |
$ | 39,747 | $ | 40,903 | (3 | )% | $ | 114,289 | $ | 111,466 | 3 | % | ||||||||||||
| Radio |
18,039 | 17,583 | 3 | % | 49,534 | 48,035 | 3 | % | ||||||||||||||||
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| Total |
$ | 57,786 | $ | 58,486 | (1 | )% | $ | 163,823 | $ | 159,501 | 3 | % | ||||||||||||
| Operating Expenses (1) |
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| Television |
$ | 20,032 | $ | 19,573 | 2 | % | $ | 58,519 | $ | 57,314 | 2 | % | ||||||||||||
| Radio |
13,959 | 13,313 | 5 | % | 40,792 | 39,089 | 4 | % | ||||||||||||||||
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| Total |
$ | 33,991 | $ | 32,886 | 3 | % | $ | 99,311 | $ | 96,403 | 3 | % | ||||||||||||
| Corporate Expenses (1) |
$ | 5,011 | $ | 4,465 | 12 | % | $ | 14,244 | $ | 12,527 | 14 | % | ||||||||||||
| Consolidated adjusted EBITDA (1) |
$ | 19,864 | $ | 21,640 | (8 | )% | $ | 53,241 | $ | 51,521 | 3 | % | ||||||||||||
| (1) | Operating expenses, Corporate expenses, and Consolidated adjusted EBITDA are defined on page 1. |
Entravision Communications Corporation will hold a conference call to discuss its 2013 third quarter results on November 6, 2013 at 5 p.m. Eastern Time. To access the conference call, please dial 412-858-4600 ten minutes prior to the start time. The call will be webcast live and archived for replay on the investor relations portion of the Company’s Web site located at www.entravision.com.
Entravision Communications Corporation is a diversified Spanish-language media company utilizing a combination of television, radio and digital operations to reach Latino consumers across the United States, as well as the border markets of Mexico. Entravision is the largest affiliate group of both the top-ranked Univision television network and Univision’s UniMas network, with television stations in 19 of the nation’s top 50 Latino markets. The company owns and/or operates 56 primary television stations and also operates one of the nation’s largest groups of primarily Spanish-language radio stations, consisting of 49 owned and operated radio stations. Additionally, Entravision has a variety of cross-platform digital content and sales offerings designed to capitalize on the company’s leadership position within the Latino broadcasting community. Entravision shares of Class A Common Stock are traded on The New York Stock Exchange under the symbol: EVC.
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)
For more information, please contact:
| Christopher T. Young | Mike Smargiassi/Brad Edwards | |
| Chief Financial Officer | Brainerd Communicators, Inc. | |
| Entravision Communications Corporation | 212-986-6667 | |
| 310-447-3870 |
Entravision Communications
Page 5 of 9
Entravision Communications Corporation
Consolidated Balance Sheets
(In thousands)
| September 30, | December 31, | |||||||
| 2013 | 2012 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets |
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| Cash and cash equivalents |
$ | 53,546 | $ | 36,130 | ||||
| Trade receivables, net of allowance for doubtful accounts |
52,017 | 48,030 | ||||||
| Prepaid expenses and other current assets |
5,434 | 4,245 | ||||||
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| Total current assets |
110,997 | 88,405 | ||||||
| Property and equipment, net |
59,589 | 61,435 | ||||||
| Intangible assets subject to amortization, net |
20,446 | 22,349 | ||||||
| Intangible assets not subject to amortization |
220,701 | 220,701 | ||||||
| Goodwill |
36,647 | 36,647 | ||||||
| Other assets |
7,284 | 8,514 | ||||||
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| Total assets |
$ | 455,664 | $ | 438,051 | ||||
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| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities |
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| Current maturities of long-term debt |
$ | 3,750 | $ | 150 | ||||
| Advances payable, related parties |
118 | 118 | ||||||
| Accounts payable and accrued expenses |
29,025 | 39,158 | ||||||
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| Total current liabilities |
32,893 | 39,426 | ||||||
| Long-term debt, less current maturities (net of bond discount of $0 and $2,982) |
371,250 | 340,664 | ||||||
| Other long-term liabilities |
6,874 | 7,359 | ||||||
| Deferred income taxes |
50,256 | 45,201 | ||||||
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| Total liabilities |
461,273 | 432,650 | ||||||
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| Stockholders’ equity (deficit) |
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| Class A common stock |
6 | 5 | ||||||
| Class B common stock |
2 | 2 | ||||||
| Class U common stock |
1 | 1 | ||||||
| Additional paid-in capital |
937,071 | 930,814 | ||||||
| Accumulated deficit |
(942,689 | ) | (925,421 | ) | ||||
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| Total stockholders’ equity (deficit) |
(5,609 | ) | 5,401 | |||||
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| Total liabilities and stockholders’ equity (deficit) |
$ | 455,664 | $ | 438,051 | ||||
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Entravision Communications
Page 6 of 9
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, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Net revenue |
$ | 57,786 | $ | 58,486 | $ | 163,823 | $ | 159,501 | ||||||||
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| Expenses: |
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| Direct operating expenses |
25,860 | 23,293 | 76,073 | 67,803 | ||||||||||||
| Selling, general and administrative expenses |
8,131 | 9,593 | 23,238 | 28,600 | ||||||||||||
| Corporate expenses |
5,011 | 4,465 | 14,244 | 12,527 | ||||||||||||
| Depreciation and amortization |
3,613 | 4,013 | 11,388 | 12,436 | ||||||||||||
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| 42,615 | 41,364 | 124,943 | 121,366 | |||||||||||||
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| Operating income (loss) |
15,171 | 17,122 | 38,880 | 38,135 | ||||||||||||
| Interest expense |
(5,352 | ) | (8,671 | ) | (21,017 | ) | (26,730 | ) | ||||||||
| Interest income |
12 | 10 | 28 | 23 | ||||||||||||
| Gain (loss) on debt extinguishment |
(29,404 | ) | — | (29,534 | ) | (1,230 | ) | |||||||||
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| Income (loss) before income taxes |
(19,573 | ) | 8,461 | (11,643 | ) | 10,198 | ||||||||||
| Income tax (expense) benefit |
(1,811 | ) | (1,228 | ) | (5,625 | ) | (4,294 | ) | ||||||||
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| Net income (loss) applicable to common stockholders |
$ | (21,384 | ) | $ | 7,233 | $ | (17,268 | ) | $ | 5,904 | ||||||
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| Basic and diluted earnings per share: |
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| Net income (loss) per share applicable to common stockholders, basic and diluted |
$ | (0.24 | ) | $ | 0.08 | $ | (0.20 | ) | $ | 0.07 | ||||||
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| Weighted average common shares outstanding, basic |
87,959,856 | 85,940,225 | 87,170,106 | 85,861,671 | ||||||||||||
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| Weighted average common shares outstanding, diluted |
87,959,856 | 86,386,655 | 87,170,106 | 86,220,868 | ||||||||||||
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Entravision Communications
Page 7 of 9
Entravision Communications Corporation
Consolidated Statements of Cash Flows
(In thousands; unaudited)
| Three-Month Period | Nine-Month Period | |||||||||||||||
| Ended September 30, | Ended September 30, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Cash flows from operating activities: |
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| Net income (loss) |
$ | (21,384 | ) | $ | 7,233 | $ | (17,268 | ) | $ | 5,904 | ||||||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
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| Depreciation and amortization |
3,613 | 4,013 | 11,388 | 12,436 | ||||||||||||
| Deferred income taxes |
1,761 | 1,080 | 5,055 | 3,485 | ||||||||||||
| Amortization of debt issue costs |
408 | 569 | 1,438 | 1,706 | ||||||||||||
| Amortization of syndication contracts |
148 | 175 | 450 | 556 | ||||||||||||
| Payments on syndication contracts |
(344 | ) | (435 | ) | (995 | ) | (1,369 | ) | ||||||||
| Non-cash stock-based compensation |
1,276 | 765 | 3,518 | 1,763 | ||||||||||||
| (Gain) loss on debt extinguishment |
29,404 | — | 29,534 | 1,230 | ||||||||||||
| Changes in assets and liabilities: |
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| (Increase) decrease in accounts receivable |
626 | 260 | (3,701 | ) | (3,511 | ) | ||||||||||
| (Increase) decrease in prepaid expenses and other assets |
(869 | ) | (879 | ) | (1,323 | ) | (1,056 | ) | ||||||||
| Increase (decrease) in accounts payable, accrued expenses and other liabilities |
(9,473 | ) | (5,468 | ) | (10,111 | ) | (7,466 | ) | ||||||||
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| Net cash provided by (used in) operating activities |
5,166 | 7,313 | 17,985 | 13,678 | ||||||||||||
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| Cash flows from investing activities: |
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| Purchases of property and equipment and intangibles |
(2,963 | ) | (2,855 | ) | (7,568 | ) | (6,502 | ) | ||||||||
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| Net cash provided by (used in) investing activities |
(2,963 | ) | (2,855 | ) | (7,568 | ) | (6,502 | ) | ||||||||
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| Cash flows from financing activities: |
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| Proceeds from issuance of common stock |
348 | 23 | 2,740 | 23 | ||||||||||||
| Payments on long-term debt |
(364,997 | ) | — | (365,047 | ) | (20,600 | ) | |||||||||
| Proceeds from borrowings on long-term debt |
375,000 | — | 375,000 | — | ||||||||||||
| Payments of capitalized debt offering and issuance costs |
(74 | ) | — | (5,694 | ) | (80 | ) | |||||||||
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| Net cash provided by (used in) financing activities |
10,277 | 23 | 6,999 | (20,657 | ) | |||||||||||
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| Net increase (decrease) in cash and cash equivalents |
12,480 | 4,481 | 17,416 | (13,481 | ) | |||||||||||
| Cash and cash equivalents: |
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| Beginning |
41,066 | 40,757 | 36,130 | 58,719 | ||||||||||||
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| Ending |
$ | 53,546 | $ | 45,238 | $ | 53,546 | $ | 45,238 | ||||||||
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Entravision Communications
Page 8 of 9
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, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Consolidated adjusted EBITDA (1) |
$ | 19,864 | $ | 21,640 | $ | 53,241 | $ | 51,521 | ||||||||
| Interest expense |
(5,352 | ) | (8,671 | ) | (21,017 | ) | (26,730 | ) | ||||||||
| Interest income |
12 | 10 | 28 | 23 | ||||||||||||
| Income tax (expense) benefit |
(1,811 | ) | (1,228 | ) | (5,625 | ) | (4,294 | ) | ||||||||
| Amortization of syndication contracts |
(148 | ) | (175 | ) | (450 | ) | (556 | ) | ||||||||
| Payments on syndication contracts |
344 | 435 | 995 | 1,369 | ||||||||||||
| Non-cash stock-based compensation included in direct operating expenses |
(297 | ) | (45 | ) | (776 | ) | (101 | ) | ||||||||
| Non-cash stock-based compensation included in selling, general and administrative expenses |
— | (222 | ) | — | (546 | ) | ||||||||||
| Non-cash stock-based compensation included in corporate expenses |
(979 | ) | (498 | ) | (2,742 | ) | (1,116 | ) | ||||||||
| Depreciation and amortization |
(3,613 | ) | (4,013 | ) | (11,388 | ) | (12,436 | ) | ||||||||
| Gain (loss) on debt extinguishment |
(29,404 | ) | — | (29,534 | ) | (1,230 | ) | |||||||||
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| Net income (loss) |
(21,384 | ) | 7,233 | (17,268 | ) | 5,904 | ||||||||||
| Depreciation and amortization |
3,613 | 4,013 | 11,388 | 12,436 | ||||||||||||
| Deferred income taxes |
1,761 | 1,080 | 5,055 | 3,485 | ||||||||||||
| Amortization of debt issue costs |
408 | 569 | 1,438 | 1,706 | ||||||||||||
| Amortization of syndication contracts |
148 | 175 | 450 | 556 | ||||||||||||
| Payments on syndication contracts |
(344 | ) | (435 | ) | (995 | ) | (1,369 | ) | ||||||||
| Non-cash stock-based compensation |
1,276 | 765 | 3,518 | 1,763 | ||||||||||||
| (Gain) loss on debt extinguishment |
29,404 | — | 29,534 | 1,230 | ||||||||||||
| Changes in assets and liabilities: |
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| (Increase) decrease in accounts receivable |
626 | 260 | (3,701 | ) | (3,511 | ) | ||||||||||
| (Increase) decrease in prepaid expenses and other assets |
(869 | ) | (879 | ) | (1,323 | ) | (1,056 | ) | ||||||||
| Increase (decrease) in accounts payable, accrued expenses and other liabilities |
(9,473 | ) | (5,468 | ) | (10,111 | ) | (7,466 | ) | ||||||||
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| Cash flows from operating activities |
$ | 5,166 | $ | 7,313 | $ | 17,985 | $ | 13,678 | ||||||||
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| (1) | Consolidated adjusted EBITDA is defined on page 1. |
Entravision Communications
Page 9 of 9
Entravision Communications Corporation
Reconciliation of Free Cash Flow to Net Income (Loss)
(In thousands; unaudited)
The most directly comparable GAAP financial measure is net income (loss). A reconciliation of this non-GAAP measure to net income (loss) for each of the periods presented is as follows:
| Three-Month Period | Nine-Month Period | |||||||||||||||
| Ended September 30, | Ended September 30, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Consolidated adjusted EBITDA (1) |
$ | 19,864 | $ | 21,640 | $ | 53,241 | $ | 51,521 | ||||||||
| Net interest expense (1) |
4,932 | 8,092 | 19,551 | 25,001 | ||||||||||||
| Cash paid for income taxes |
50 | 148 | 570 | 809 | ||||||||||||
| Capital expenditures (2) |
2,963 | 2,855 | 7,568 | 6,502 | ||||||||||||
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| Free cash flow (1) |
11,919 | 10,545 | 25,552 | 19,209 | ||||||||||||
| Capital expenditures (2) |
2,963 | 2,855 | 7,568 | 6,502 | ||||||||||||
| Amortization of debt issue costs |
(408 | ) | (569 | ) | (1,438 | ) | (1,706 | ) | ||||||||
| Non-cash income tax expense |
(1,761 | ) | (1,080 | ) | (5,055 | ) | (3,485 | ) | ||||||||
| Amortization of syndication contracts |
(148 | ) | (175 | ) | (450 | ) | (556 | ) | ||||||||
| Payments on syndication contracts |
344 | 435 | 995 | 1,369 | ||||||||||||
| Non-cash stock-based compensation included in direct operating expenses |
(297 | ) | (45 | ) | (776 | ) | (101 | ) | ||||||||
| Non-cash stock-based compensation included in selling, general and administrative expenses |
— | (222 | ) | — | (546 | ) | ||||||||||
| Non-cash stock-based compensation included in corporate expenses |
(979 | ) | (498 | ) | (2,742 | ) | (1,116 | ) | ||||||||
| Depreciation and amortization |
(3,613 | ) | (4,013 | ) | (11,388 | ) | (12,436 | ) | ||||||||
| Gain (loss) on debt extinguishment |
(29,404 | ) | — | (29,534 | ) | (1,230 | ) | |||||||||
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| Net income (loss) |
$ | (21,384 | ) | $ | 7,233 | $ | (17,268 | ) | $ | 5,904 | ||||||
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| (1) | Consolidated adjusted EBITDA, net interest expense, and free cash flow are defined on page 1. |
| (2) | Capital expenditures is not part of the consolidated statement of operations. |