Attached files
| file | filename |
|---|---|
| 8-K - 8-K - ENTRAVISION COMMUNICATIONS CORP | evc-8k_20171130.htm |
Exhibit 99.1
Entravision Communications Corporation
Reconciliation of Consolidated Adjusted EBITDA to Cash Flows From Operating Activities
(In thousands; unaudited)
|
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Three-Month Period |
|
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Nine-Month Period |
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Ended September 30, |
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Ended September 30, |
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2017 |
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2016 |
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2017 |
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|
2016 |
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|
Consolidated adjusted EBITDA |
$ |
12,707 |
|
|
$ |
17,841 |
|
|
$ |
40,201 |
|
|
$ |
48,623 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue - FCC spectrum incentive auction |
|
263,943 |
|
|
|
- |
|
|
|
263,943 |
|
|
|
- |
|
|
Expenses - FCC spectrum incentive auction |
|
(14,234 |
) |
|
|
- |
|
|
|
(14,234 |
) |
|
|
- |
|
|
Interest expense |
|
(3,756 |
) |
|
|
(3,894 |
) |
|
|
(11,084 |
) |
|
|
(11,619 |
) |
|
Interest income |
|
256 |
|
|
|
71 |
|
|
|
475 |
|
|
|
196 |
|
|
Income tax expense |
|
(96,167 |
) |
|
|
(4,035 |
) |
|
|
(100,185 |
) |
|
|
(9,421 |
) |
|
Amortization of syndication contracts |
|
(93 |
) |
|
|
(99 |
) |
|
|
(311 |
) |
|
|
(289 |
) |
|
Payments on syndication contracts |
|
85 |
|
|
|
87 |
|
|
|
300 |
|
|
|
270 |
|
|
Equity in net income (loss) of nonconsolidated affiliate |
|
(107 |
) |
|
|
|
|
|
|
(175 |
) |
|
|
- |
|
|
Non-cash stock based compensation included in direct operating expenses |
|
(276 |
) |
|
|
(79 |
) |
|
|
(806 |
) |
|
|
(700 |
) |
|
Non-cash stock based compensation included in corporate expenses |
|
(813 |
) |
|
|
(665 |
) |
|
|
(2,343 |
) |
|
|
(1,934 |
) |
|
Depreciation and amortization |
|
(4,337 |
) |
|
|
(3,812 |
) |
|
|
(12,460 |
) |
|
|
(11,724 |
) |
|
Net income |
|
157,208 |
|
|
|
5,415 |
|
|
|
163,321 |
|
|
|
13,402 |
|
|
Depreciation and amortization |
|
4,337 |
|
|
|
3,812 |
|
|
|
12,460 |
|
|
|
11,724 |
|
|
Cost of revenue - television (spectrum usage rights) |
|
12,131 |
|
|
|
|
|
|
|
12,131 |
|
|
|
|
|
|
Deferred income taxes |
|
96,086 |
|
|
|
3,965 |
|
|
|
99,514 |
|
|
|
8,887 |
|
|
Amortization of debt issue costs |
|
226 |
|
|
|
195 |
|
|
|
595 |
|
|
|
579 |
|
|
Amortization of syndication contracts |
|
93 |
|
|
|
99 |
|
|
|
311 |
|
|
|
289 |
|
|
Payments on syndication contracts |
|
(85 |
) |
|
|
(87 |
) |
|
|
(300 |
) |
|
|
(270 |
) |
|
Equity in net income (loss) of nonconsolidated affiliate |
|
107 |
|
|
|
|
|
|
|
175 |
|
|
|
- |
|
|
Non-cash stock based compensation |
|
1,089 |
|
|
|
744 |
|
|
|
3,149 |
|
|
|
2,634 |
|
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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(Increase) decrease in accounts receivable |
|
(791 |
) |
|
|
221 |
|
|
|
12,790 |
|
|
|
5,804 |
|
|
(Increase) decrease in prepaid expenses and other assets |
|
(383 |
) |
|
|
(569 |
) |
|
|
(1,830 |
) |
|
|
(952 |
) |
|
Increase (decrease) in accounts payable, accrued expenses and other liabilities |
|
130 |
|
|
|
684 |
|
|
|
(8,862 |
) |
|
|
(3,192 |
) |
|
Cash flows from operating activities |
$ |
270,148 |
|
|
$ |
14,479 |
|
|
$ |
293,454 |
|
|
$ |
38,905 |
|
Consolidated adjusted EBITDA, as defined in our New Credit Agreement, 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, syndication programming amortization less syndication
programming payments, Spectrum Auction Revenue 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 our New Credit Agreement 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, Spectrum Auction Revenue less related expenses, expenses associated with investments, acquisitions and dispositions and certain pro-forma cost savings. 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, syndication programming amortization less syndication programming payments, Spectrum Auction Revenue less related expenses, expenses associated with investments, acquisitions and dispositions and certain pro-forma cost savings, consolidated adjusted EBITDA has certain limitations because it excludes and includes several important 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.