Entravision Communication : Entravision Communications Corporation Reports First Quarter 2012 Results
05/08/2012| 04:10pm US/Eastern
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SANTA MONICA, Calif., May 8, 2012 /PRNewswire/ -- Entravision Communications Corporation (NYSE: EVC) today reported financial results for the three-month period ended March 31, 2012.
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 6. Unaudited financial highlights are as follows:
Three-Month Period
Ended March 31,
2012 2011 % Change
---- ---- --------
Net revenue $46,524 $44,044 6%
Operating expenses (1) 31,006 30,064 3%
Corporate expenses (2) 3,881 3,745 4%
Consolidated adjusted EBITDA (3) 11,624 10,408 12%
Free cash flow (4) $1,444 $(1,550) NM
Free cash flow per share (4) $0.02 $(0.02) NM
Net income (loss) applicable to common stockholders $(3,395) $(4,432) (23)%
Net income (loss) per share applicable
to common stockholders, basic and diluted $(0.04) $(0.05) (20)%
Weighted average common shares outstanding, basic and diluted 85,806,080 85,039,298
(1) Operating expenses include direct
operating, selling, general and
administrative expenses. Included in
operating expenses are $0.1 million
and $0.2 million of non-cash stock-
based compensation for the three-
month periods ended March 31, 2012 and
2011, respectively. Operating expenses
do not include corporate expenses,
depreciation and amortization,
impairment charge, gain (loss) on sale
of assets and gain (loss) on debt
extinguishment.
(2) Corporate expenses include $0.1 million
and $0.2 million of non-cash stock-
based compensation for the three-
month periods ended March 31, 2012 and
2011, 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 revolving 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, capital expenditures and
dividend payments. 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 $384 million
aggregate principal amount of 8.750%
senior secured first lien notes due
2017 (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.
Commenting on the Company's earnings results, Walter F. Ulloa, Chairman and Chief Executive Officer, said, "During the first quarter, we achieved revenue growth primarily driven by an increase in core television advertising and an increase in retransmission consent revenue, despite continuing challenges in the advertising environment, as our advertising customers continue to make difficult choices in the current uncertain economic environment. 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 Months Ended March 31, 2012 Compared to Three Months Ended March 31, 2011
(Unaudited)
Three-Month Period
Ended March 31,
2012 2011 % Change
---- ---- --------
Net revenue $46,524 $44,044 6%
Operating expenses (1) 31,006 30,064 3%
Corporate expenses (1) 3,881 3,745 4%
Depreciation and amortization 4,347 4,732 (8)%
Operating income (loss) 7,290 5,503 32%
Interest expense, net (9,096) (9,441) (4)%
Other income (loss) - 687 (100)%
Income (loss) before income taxes (1,806) (3,251) (44)%
Income tax (expense) benefit (1,589) (1,181) 35%
------ ------
Net income (loss) $(3,395) $(4,432) (23)%
======= =======
(1) Operating expenses and corporate expenses are defined on page 1.
Net revenue increased to $46.5 million for the three-month period ended March 31, 2012 from $44.0 million for the three-month period ended March 31, 2011, an increase of $2.5 million. The increase came from our television segment and was primarily attributable to an increase in local advertising and an increase in retransmission consent revenue.
Operating expenses increased to $31.0 million for the three-month period ended March 31, 2012 from $30.1 million for the three-month period ended March 31, 2011, an increase of $0.9 million. The increase was primarily attributable to an increase in expenses associated with the increase in net revenue and an increase in salary expense.
Corporate expenses increased to $3.9 million for the three-month period ended March 31, 2012 from $3.7 million for the three-month period ended March 31, 2011, an increase of $0.2 million. The increase was primarily attributable to the increase in interactive media-related expenses and salary expense.
Segment Results
The following represents selected unaudited segment information:
Three-Month Period
Ended March 31,
2012 2011 % Change
---- ---- --------
Net Revenue
Television $33,164 $30,668 8%
Radio $13,360 $13,376 (0)%
Total $46,524 $44,044 6%
Operating Expenses (1)
Television $18,535 $17,830 4%
Radio 12,471 12,234 2%
Total $31,006 $30,064 3%
Corporate Expenses (1) $3,881 $3,745 4%
Consolidated adjusted EBITDA (1) $11,624 $10,408 12%
(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 2012 first quarter results on May 8, 2012 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 Hispanic 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 TeleFutura network, with television stations in 19 of the nation's top 50 Hispanic markets. The company also operates one of the nation's largest groups of primarily Spanish-language radio stations, consisting of 48 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 Hispanic 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)
Entravision Communications CorporationConsolidated Statements of Operations(In thousands, except share and per share data)(Unaudited)
Three-Month Period
Ended March 31,
---------------
2012 2011
---- ----
Net revenue $46,524 $44,044
------- -------
Expenses:
Direct
operating
expenses 21,634 20,821
Selling,
general and
administrative
expenses 9,372 9,243
Corporate
expenses 3,881 3,745
Depreciation
and
amortization 4,347 4,732
39,234 38,541
------ ------
7,290 5,503
Operating income (loss)
Interest expense (9,100) (9,443)
Interest income 4 2
Other income (loss) - 687
(1,806) (3,251)
Income (loss) before income taxes
Income tax (expense) benefit (1,589) (1,181)
------ ------
Net income (loss) applicable to common
stockholders $(3,395) $(4,432)
======= =======
Basic and diluted earnings per share:
Net income (loss) per share applicable to common
stockholders,
$(0.04) $(0.05)
basic and diluted
Weighted average common shares outstanding,
basic and diluted 85,806,080 85,039,298
========== ==========
Entravision Communications CorporationConsolidated Statements of Cash Flows(In thousands; unaudited)
Three-Month Period
Ended March 31,
---------------
2012 2011
---- ----
Cash flows from operating activities:
$(3,395) $(4,432)
Net income (loss)
Adjustments to reconcile net income
(loss) to net cash provided by (used
in) operating activities:
4,347 4,732
Depreciation and amortization
1,106 638
Deferred income taxes
563 539
Amortization of debt issue costs
193 290
Amortization of syndication contracts
(467) (480)
Payments on syndication contracts
261 363
Non-cash stock-based compensation
- (687)
(Gain) loss on equity investment
Changes in assets and liabilities, net
of effect of acquisitions and
dispositions:
3,269 6,807
(Increase) decrease in accounts
receivable
(644) (598)
(Increase) decrease in prepaid expenses
and other assets
(11,539) (10,627)
Increase (decrease) in accounts payable,
accrued expenses and other liabilities
(6,306) (3,455)
Net cash provided by (used in) operating
activities
Cash flows from investing activities:
(1,164) (2,513)
Purchases of property and equipment and
intangibles
- (348)
Purchase of a business
(1,164) (2,861)
Net cash provided by (used in) investing
activities
Cash flows from financing activities:
- 27
Proceeds from issuance of common stock
(80) (29)
Payments of deferred debt and offering
costs
(80) (2)
Net cash provided by (used in) financing
activities
(7,550) (6,318)
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents:
58,719 72,390
Beginning
$51,169 $66,072
Ending
Entravision Communications CorporationReconciliation of Consolidated Adjusted EBITDA to Cash Flows From Operating Activities (In thousands; unaudited)
The most directly comparable GAAP financial measure is operating cash flow. A reconciliation of this non-GAAP measure to cash flows from operating activities for each of the periods presented is as follows:
Three-Month Period
Ended March 31,
2012 2011
---- ----
Consolidated adjusted EBITDA (1) $11,624 $10,408
Interest expense (9,100) (9,443)
Interest income 4 2
Income tax (expense) benefit (1,589) (1,181)
Amortization of syndication contracts (193) (290)
Payments on syndication contracts 467 480
Non-cash stock-based compensation included in direct operating
expenses (13) (51)
Non-cash stock-based compensation included in selling, general
and administrative expenses (109) (156)
Non-cash stock-based compensation included in corporate expenses (139) (156)
Depreciation and amortization (4,347) (4,732)
Gain (loss) on equity investment - 687
Net income (loss) (3,395) (4,432)
Depreciation and amortization 4,347 4,732
Deferred income taxes 1,106 638
Amortization of debt issue costs 563 539
Amortization of syndication contracts 193 290
Payments on syndication contracts (467) (480)
Non-cash stock-based compensation 261 363
(Gain) loss on equity investment - (687)
Changes in assets and liabilities, net of effect of acquisitions and dispositions:
(Increase) decrease in accounts receivable 3,269 6,807
(Increase) decrease in prepaid expenses and other assets (644) (598)
Increase (decrease) in accounts payable, accrued expenses and other
liabilities (11,539) (10,627)
Cash flows from operating activities $(6,306) $(3,455)
======= =======
(1) Consolidated adjusted EBITDA is defined on page 1.
Entravision Communications CorporationReconciliation 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
Ended March 31,
2012 2011
---- ----
Consolidated adjusted EBITDA (1) $11,624 $10,408
Net interest expense (1) 8,533 8,902
Cash paid (refunded) for income taxes 483 543
Capital expenditures (2) 1,164 2,513
Free cash flow (1) 1,444 (1,550)
Capital expenditures (2) 1,164 2,513
Amortization of debt issue costs (563) (539)
Non-cash income tax expense (1,106) (638)
Amortization of syndication contracts (193) (290)
Payments on syndication contracts 467 480
Non-cash stock-based compensation included in direct operating
expenses (13) (51)
Non-cash stock-based compensation included in selling, general
and administrative expenses (109) (156)
Non-cash stock-based compensation included in corporate expenses (139) (156)
Depreciation and amortization (4,347) (4,732)
Gain (loss) on equity investment - 687
Net income (loss) $(3,395) $(4,432)
======= =======
(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.
SOURCE Entravision Communications Corporation
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