8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 09, 2023

ENTRAVISION COMMUNICATIONS CORPORATION

(Exact name of Registrant as Specified in Its Charter)

Delaware	001-15997	95-4783236
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)
2425 Olympic Boulevard Suite 6000 West
Santa Monica, California		90404
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s Telephone Number, Including Area Code: 310 447-3870

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock	EVC	The New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On March 9, 2023, Entravision Communications Corporation (the “Company”) issued a press release announcing its results of operations for the three- and twelve-month periods ended December 31, 2022. A copy of that press release is furnished herewith as Exhibit 99.1.

The information provided pursuant to Item 2.02 in this Current Report on Form 8-K, including the exhibit thereto, is being furnished under Item 2.02 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed to be incorporated by reference into any future registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, regardless of the general incorporation language of such filing, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

99.1	Press release issued by Entravision Communications Corporation on March 9, 2023 announcing its results of operations for the three- and twelve-month periods ended December 31, 2022.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			ENTRAVISION COMMUNICATIONS CORPORATION
Date:	March 9, 2023	By:	/s/ Christopher T. Young
			Christopher T. Young Interim Chief Executive Officer, and Chief Financial Officer and Treasurer

EX-99

Entravision Communications

Page 1 of 11

Exhibit 99.1

 

ENTRAVISION COMMUNICATIONS CORPORATION REPORTS

FOURTH QUARTER AND FULL YEAR 2022 RESULTS

SANTA MONICA, CALIFORNIA, March 9, 2023 – Entravision Communications Corporation (NYSE: EVC), a leading global advertising solutions, media and technology company, today announced financial results for the three- and twelve-month periods ended December 31, 2022.

Fourth Quarter and Full Year 2022 Highlights

•Record fourth quarter and annual revenue

•Record fourth quarter and annual consolidated adjusted EBITDA

•Record political advertising revenue compared to prior election cycles, including presidential

•Net loss attributable to common stockholders of $1.6 million in the fourth quarter compared to net income attributable to common stockholders of $3.9 million in the prior-year quarter

•Net income attributable to common stockholders for the full year down 38% compared to the prior-year

•Consolidated adjusted EBITDA up 11% and 17% compared to the prior-year quarter and full year, respectively

•Operating cash flow down 93% and up 21% compared to the prior-year quarter and full year, respectively

•Free cash flow down 37% and 20% compared to the prior-year quarter and full year, respectively

•Quarterly cash dividend increase to $0.05 per share

“We are pleased with our 2022 performance, which marks a record year for Entravision for revenue and consolidated adjusted EBITDA,” said Entravision Interim Chief Executive Officer and Chief Financial Officer, Chris Young. “Our results demonstrate the resiliency and strength of our business through challenging macro conditions, and the successful execution of our strategic plan to create a leading global advertising solutions, media and technology company. We have enhanced our digital segment organically, as well as through strategic partnerships, geographic expansion and accretive acquisitions to bolster our suite of digital services in the large and growing advertising industry. Our complementary non-digital businesses, while a smaller percentage of our revenue portfolio, continue to be an important contributor to our growth. We will continue to leverage our tools, reach, technology and world-class team to meet our clients’ evolving needs and deliver enhanced shareholder value."

Paul Zevnik, Interim Chair and co-founder said, “The Entravision team mourns the sudden and tragic loss of our late CEO, founder and dear friend, Walter Ulloa. Walter passed unexpectedly on the last day of the most successful year in the company's history. Since we founded Entravision in 1996, we have developed a clear vision to build a leading global advertising solutions, media and technology company serving diverse demographics with diverse media. Through Walter’s leadership and with the support of a strong leadership team and dedicated entrepreneurs across each of Entravision’s business platforms, we have achieved tremendous growth and transformed the Company’s geographical breadth and media portfolio. Most importantly, we created a company that is a great place to work with a focus on engagement, trust, open communications, community service and involvement, and long-lasting relationships with our key partners. I miss our friend dearly, and the Board is committed to working with management to advance Walter’s vision and execute on our roadmap to deliver enhanced value for our stakeholders and partners."

Quarterly Cash Dividend

As previously announced, the Company's Board of Directors approved a quarterly cash dividend to shareholders of $0.05 per share on the Company's Class A and Class U common stock, in an aggregate amount of approximately $4.4 million. This is double the Company's previous quarterly dividend of $0.025 in 2022 and returns the dividend to its pre-pandemic level. The quarterly dividend will be payable on March 31, 2023 to shareholders of record as of the close of business on March 16, 2023, and the common stock will trade ex-dividend on March 15, 2023. 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.

Entravision Communications

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Non-GAAP Financial Measures

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

Unaudited Financial Highlights (In thousands, except share and per share data)

	Three Months Ended								Twelve Months Ended
	December 31,								December 31,
	2022			2021		% Change			2022			2021			% Change
Net revenue	$	296,328		$	233,894		27	%	$	956,209		$	760,192			26	%
Cost of revenue - digital (1)		191,965			148,399		29	%		623,916			466,517			34	%
Operating expenses (2)		57,249			48,065		19	%		197,776			173,034			14	%
Corporate expenses (3)		22,635			11,237		101	%		49,404			32,993			50	%
Foreign currency (gain) loss		860			54		1493	%		2,972			508			485	%
Consolidated adjusted EBITDA (4)		36,524			32,856		11	%		103,090			88,033			17	%
Free cash flow (5)	$	19,299		$	30,875		(37	)%	$	63,325		$	78,706			(20	)%
Net income (loss)	$	725		$	3,868		(81	)%	$	20,169		$	35,230			(43	)%
Net (income) loss attributable to redeemable noncontrolling interest	$	-		$	-	*			$	-		$	(5,938	)		(100	)%
Net (income) loss attributable to noncontrolling interest	$	(2,353	)	$	-	*			$	(2,050	)	$	-		*
Net income (loss) attributable to common stockholders	$	(1,628	)	$	3,868	*			$	18,119		$	29,292			(38	)%
Net income (loss) per share attributable to common stockholders, basic	$	(0.02	)	$	0.05	*			$	0.21		$	0.34			(38	)%
Net income (loss) per share attributable to common stockholders, diluted	$	(0.02	)	$	0.04	*			$	0.21		$	0.33			(36	)%
Weighted average common shares outstanding, basic		85,158,189			85,579,385					85,391,163			85,301,603
Weighted average common shares outstanding, diluted		85,158,189			88,556,177					87,769,762			87,910,603

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

(2)Operating expenses include direct operating and selling, general and administrative expenses. Included in operating expenses are $2.8 million and $2.3 million of non-cash stock-based compensation for the three-month periods ended December 31, 2022 and 2021, respectively, and $5.7 million and $3.2 million of non-cash stock-based compensation for the twelve-month periods ended December 31, 2022 and 2021, respectively.

(3)Corporate expenses include $9.2 million and $4.0 million of non-cash stock-based compensation for the three-month periods ended December 31, 2022 and 2021, respectively, and $14.3 million and $6.4 million of non-cash stock-based compensation for the twelve-month periods ended December 31, 2022 and 2021, respectively.

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

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

Entravision Communications

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Unaudited Financial Results (In thousands)

	Three Months Ended
	December 31,
	2022			2021			% Change
Net revenue	$	296,328		$	233,894			27	%
Cost of revenue - digital (1)		191,965			148,399			29	%
Operating expenses (1)		57,249			48,065			19	%
Corporate expenses (1)		22,635			11,237			101	%
Depreciation and amortization		6,485			6,261			4	%
Change in fair value of contingent consideration		7,400			8,224			(10	)%
Impairment charge		1,600			1,419			13	%
Foreign currency (gain) loss		860			54			1493	%
Other operating (gain) loss		1,393			(2,131	)	*
Operating income (loss)		6,741			12,366			(45	)%
Interest expense, net		(2,703	)		(1,723	)		57	%
Dividend income		—			2			(100	)%
Realized gain (loss) on marketable securities		(59	)		—		*
Income before income taxes		3,979			10,645			(63	)%
Income tax (expense) benefit		(3,254	)		(6,777	)		(52	)%
Net income (loss)		725			3,868			(81	)%
Net (income) loss attributable to noncontrolling interest		(2,353	)		—		*
Net income (loss) attributable to common stockholders	$	(1,628	)	$	3,868		*

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

Net revenue in the fourth quarter of 2022 totaled $296.3 million, up 27% from $233.9 million in the prior-year period. Of the overall increase, approximately $52.6 million was attributable to our digital segment and was primarily due to advertising revenue growth from our digital commercial partnerships business. In addition, the increase in net revenue in our digital segment was due to our investments in variable interest entities in 2022, which did not contribute to our results of operations in the comparable prior-year period. In addition, of the overall increase, approximately $5.6 million was attributable to our television segment, primarily due to an increase in political advertising revenue, partially offset by decreases in local and national advertising revenue. These decreases were mainly attributed to the expiration of our Univision and UniMás network affiliation agreements in Orlando, Tampa and Washington, D.C. on December 31, 2021. Additionally, of the overall increase, approximately $4.2 million was attributable to our audio segment, primarily due to increases in political advertising revenue and national advertising revenue, partially offset by a decrease in local advertising revenue.

Cost of revenue in the fourth quarter of 2022 totaled $192.0 million, up 29% from $148.4 million in the prior-year period. The increase was primarily due to increased cost of revenue related to advertising revenue growth from our digital commercial partnerships business, and due to our investments in variable interest entities in 2022, which did not contribute to our results of operations in the comparable prior-year period.

Operating expenses in the fourth quarter of 2022 totaled $57.2 million, up 19% from $48.1 million in the prior-year period. Of the overall increase, approximately $7.0 million was attributable to our digital segment and was primarily due to an increase in expenses associated with the increase in digital advertising revenue, an increase in salary expense and non-cash stock-based compensation, and an increase due to our investments in variable interest entities in 2022, which did not contribute to our results of operations in the comparable prior-year period. In addition, of the overall increase in operating expenses, approximately $1.1 million was attributable to our television segment primarily due to an increase in rent expense, an increase in bad debt expense and an increase in non-cash stock-based compensation, partially offset by a decrease in expenses associated with the decrease in local and national advertising revenue. Additionally, of the overall increase in operating expenses, approximately $1.0 million was attributable to our audio segment primarily due to an increase in expenses associated with the increase in national advertising revenue and an increase in rent expense.

Corporate expenses in the fourth quarter of 2022 totaled $22.6 million, up 101% from $11.2 million in the prior-year period. The increase was primarily due to $8.1 million of severance related expense incurred upon the passing of our late Chief Executive Officer, and due to increases in non-cash stock-based compensation and an increase in salaries.

Entravision Communications

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Unaudited Financial Results (In thousands)

	Twelve Months Ended
	December 31,
	2022			2021			% Change
Net revenue	$	956,209		$	760,192			26	%
Cost of revenue - digital (1)		623,916			466,517			34	%
Operating expenses (1)		197,776			173,034			14	%
Corporate expenses (1)		49,404			32,993			50	%
Depreciation and amortization		25,697			22,420			15	%
Change in fair value of contingent consideration		14,210			8,224			73	%
Impairment charge		1,600			3,023			(47	)%
Foreign currency (gain) loss		2,972			508			485	%
Other operating (gain) loss		382			(6,998	)	*
Operating income (loss)		40,252			60,471			(33	)%
Interest expense, net		(8,012	)		(6,775	)		18	%
Dividend income		20			213			(91	)%
Realized gain (loss) on marketable securities		(532	)		—		*
Income before income taxes		31,728			53,909			(41	)%
Income tax (expense) benefit		(11,559	)		(18,679	)		(38	)%
Net income (loss)		20,169			35,230			(43	)%
Net (income) loss attributable to redeemable noncontrolling interest		—			(5,938	)		(100	)%
Net (income) loss attributable to noncontrolling interest		(2,050	)		—		*
Net income (loss) attributable to common stockholders	$	18,119		$	29,292			(38	)%

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

Net revenue for the year ended December 31, 2022 totaled $956.2 million, up 26% from $760.2 million in the prior-year period. Of the overall increase, approximately $191.8 million was attributable to our digital segment and was primarily due to advertising revenue growth from our digital commercial partnerships business. In addition, the increase in net revenue in our digital segment was due to our investments in variable interest entities in 2022 and our acquisitions in 2021, which did not contribute to our results of operations for the full prior-year period. In addition, of the overall increase, approximately $6.4 million was attributable to our audio segment primarily due to increases in political advertising revenue and local advertising revenue, partially offset by a decrease in national advertising revenue. The overall increase was partially offset by a decrease of approximately $2.1 million attributable to our television segment, primarily due to decreases in local and national advertising revenue, a decrease in spectrum usage rights revenue, and a decrease in retransmission consent revenue. These decreases were mainly attributed to the expiration of our Univision and UniMás network affiliation agreements in Orlando, Tampa and Washington, D.C. on December 31, 2021. The decrease in our television segment revenue was partially offset by an increase in political advertising revenue.

Cost of revenue for the year ended December 31, 2022 totaled $623.9 million, up 34% from $466.5 million in the prior-year period. The increase was primarily due to increased cost of revenue related to advertising revenue growth from our digital commercial partnerships business, and due to our investments in variable interest entities in 2022 and our acquisitions in 2021, which did not contribute to our results of operations for the full prior-year period.

Operating expenses for the year ended December 31, 2022 totaled $197.8 million, up 14% from $173.0 million in the prior-year period. Of the overall increase, approximately $22.5 million was attributable to our digital segment and was primarily due to an increase in expenses associated with the increase in digital advertising revenue, an increase in salary expense and non-cash stock-based compensation, and an increase due to our investments in variable interest entities in 2022 and our acquisitions in 2021, which did not contribute to our results of operations for the full prior-year period. In addition, of the overall increase in operating expenses, approximately $0.6 million was attributable to our television segment primarily due to an increase in rent expense, an increase in bad debt expense and an increase in non-cash stock-based compensation, partially offset by a decrease in expenses associated with the decrease in local and national advertising revenue. Additionally, of the overall increase in operating expenses, approximately $1.7 million was attributable to our audio segment primarily due to an increase in expenses associated with the increase in local advertising revenue and an increase in rent expense.

Entravision Communications

Page 5 of 11

Corporate expenses for the year ended December 31, 2022 totaled $49.4 million, up 50% from $33.0 million in the prior-year period. The increase was primarily due to $8.1 million of severance related expense incurred upon the passing of our late Chief Executive Officer, and due to increases in non-cash stock-based compensation and an increase in salaries.

Balance Sheet and Related Metrics

Cash and marketable securities as of December 31, 2022 totaled approximately $155.2 million. Total debt under the Company’s credit agreement was $209.3 million. Net of $75 million of cash and marketable securities, total leverage as defined in the Company’s credit agreement was 1.3 times as of December 31, 2022. Net of total cash and marketable securities, total leverage was 0.5 times.

Unaudited Segment Results (In thousands)

	Three Months Ended							Twelve Months Ended
	December 31,							December 31,
		2022		2021	% Change				2022		2021	% Change
Net Revenue
Digital	$	230,137	$	177,512		30	%	$	747,103	$	555,338		35	%
Television		45,812		40,241		14	%		144,730		146,839		(1	)%
Audio		20,379		16,141		26	%		64,376		58,015		11	%
Total	$	296,328	$	233,894		27	%	$	956,209	$	760,192		26	%
Cost of Revenue - Digital (1)	$	191,965	$	148,399		29	%	$	623,916	$	466,517		34	%
Operating Expenses (1)
Digital	$	22,553	$	15,540		45	%	$	74,130	$	51,604		44	%
Television		22,989		21,849		5	%		81,958		81,397		1	%
Audio		11,707		10,676		10	%		41,688		40,033		4	%
Total	$	57,249	$	48,065		19	%	$	197,776	$	173,034		14	%
Corporate Expenses (1)	$	22,635	$	11,237		101	%	$	49,404	$	32,993		50	%
Foreign currency (gain) loss	$	860	$	54		1493	%	$	2,972	$	508		485	%
Consolidated adjusted EBITDA (1)	$	36,524	$	32,856		11	%	$	103,090	$	88,033		17	%

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

Notice of Conference Call

Entravision Communications Corporation will hold a conference call to discuss its fourth quarter and full year 2022 results on Thursday, March 9, 2023 at 5:00 p.m. Eastern Time. To access the conference call, please dial (844) 836-8739 (U.S.) or (412) 317-5440 (Int’l) ten minutes prior to the start time and reference Conference ID number 10176187. 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 leading global advertising, media and ad-tech solutions company connecting brands to consumers by representing top platforms and publishers. Our dynamic portfolio includes digital, television and audio offerings. Digital, our largest revenue segment, is comprised of four business units: our digital sales representation business; Smadex, our programmatic ad purchasing platform; our branding and mobile performance solutions business; and our digital audio business. Through our digital sales representation business, we connect global media companies such as Meta, Twitter, TikTok and Spotify with advertisers in primarily emerging growth markets worldwide. Smadex is our mobile-first demand side platform, enabling advertisers to execute performance campaigns using machine learning. We also offer a branding and mobile performance solutions business, which provides managed services to advertisers looking to connect with global consumers, primarily on mobile devices, and our digital audio business provides digital audio advertising solutions for advertisers in the Americas. In addition to digital, Entravision has 49 television stations and is the largest affiliate group of the Univision and UniMás television networks. Entravision also manages 45 primarily Spanish-language radio stations that feature nationally recognized, Emmy award-winning talent. Shares of Entravision Class A Common Stock trade on the NYSE under ticker: EVC. Learn more about our offerings at entravision.com or connect with us on LinkedIn and Facebook.

Entravision Communications

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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.

For more information, please contact:

Christopher T. Young	Kimberly Esterkin
Interim Chief Executive Officer, and Chief Financial Officer and Treasurer	ADDO Investor Relations
Entravision Communications Corporation	310-829-5400
310-447-3870	evc@addo.com

# # #

(Financial Table Follows)

Entravision Communications

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Entravision Communications Corporation

Consolidated Statements of Operations

(In thousands, except share and per share data)

(Unaudited)

	Three-Month Period						Twelve-Month Period
	Ended December 31,						Ended December 31,
	2022			2021			2022			2021
Net revenue	$	296,328		$	233,894		$	956,209		$	760,192
Expenses:
Cost of revenue - digital		191,965			148,399			623,916			466,517
Direct operating expenses		35,106			32,969			122,611			116,449
Selling, general and administrative expenses		22,143			15,096			75,165			56,585
Corporate expenses		22,635			11,237			49,404			32,993
Depreciation and amortization		6,485			6,261			25,697			22,420
Change in fair value of contingent consideration		7,400			8,224			14,210			8,224
Impairment charge		1,600			1,419			1,600			3,023
Foreign currency (gain) loss		860			54			2,972			508
Other operating (gain) loss		1,393			(2,131	)		382			(6,998	)
		289,587			221,528			915,957			699,721
Operating income (loss)		6,741			12,366			40,252			60,471
Interest expense		(3,651	)		(1,733	)		(10,876	)		(7,020	)
Interest income		948			10			2,864			245
Dividend income		—			2			20			213
Realized gain (loss) on marketable securities		(59	)		—			(532	)		—
Income before income taxes		3,979			10,645			31,728			53,909
Income tax (expense) benefit		(3,254	)		(6,777	)		(11,559	)		(18,679	)
Net income (loss)		725			3,868			20,169			35,230
Net (income) loss attributable to redeemable noncontrolling interest		—			—			—			(5,938	)
Net (income) loss attributable to noncontrolling interest		(2,353	)		—			(2,050	)		—
Net income (loss) attributable to common stockholders	$	(1,628	)	$	3,868		$	18,119		$	29,292
Basic and diluted earnings per share:
Net income (loss) per share attributable to common stockholders, basic	$	(0.02	)	$	0.05		$	0.21		$	0.34
Net income (loss) per share attributable to common stockholders, diluted	$	(0.02	)	$	0.04		$	0.21		$	0.33
Cash dividends declared per common share, basic and diluted	$	0.03		$	0.03		$	0.10		$	0.10
Weighted average common shares outstanding, basic		85,158,189			85,579,385			85,391,163			85,301,603
Weighted average common shares outstanding, diluted		85,158,189			88,556,177			87,769,762			87,910,603

Entravision Communications

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Entravision Communications Corporation

Consolidated Balance Sheets

(In thousands; unaudited)

	December 31,			December 31,
	2022			2021
ASSETS
Current assets
Cash and cash equivalents	$	110,691		$	185,094
Marketable securities		44,528			—
Restricted Cash		753			749
Trade receivables, net of allowance for doubtful accounts		224,713			201,747
Assets held for sale		—			1,963
Prepaid expenses and other current assets		27,238			18,925
Total current assets		407,923			408,478
Property and equipment, net		61,362			62,498
Intangible assets subject to amortization, net		61,811			64,034
Intangible assets not subject to amortization		207,453			209,053
Goodwill		86,991			71,708
Deferred income taxes		2,591			1,462
Operating leases right of use asset		44,413			25,582
Other assets		8,297			8,527
Total assets	$	880,841		$	851,342
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of long-term debt	$	5,256		$	4,903
Accounts payable and accrued expenses		237,415			212,655
Operating lease liabilities		5,570			7,304
Total current liabilities		248,241			224,862
Long-term debt, less current maturities, net of unamortized debt issuance costs		207,292			207,416
Long-term operating lease liabilities		42,151			20,988
Other long-term liabilities		30,198			72,930
Deferred income taxes		67,590			68,220
Total liabilities		595,472			594,416
Stockholders' equity
Class A common stock		8			6
Class B common stock		—			2
Class U common stock		1			1
Additional paid-in capital		776,298			780,388
Accumulated deficit		(504,375	)		(522,494	)
Accumulated other comprehensive income (loss)		(1,510	)		(977	)
Total stockholders' equity		270,422			256,926
Noncontrolling interest		14,947			-
Total equity		285,369			256,926
Total liabilities and equity	$	880,841		$	851,342

Entravision Communications

Page 9 of 11

Entravision Communications Corporation

Consolidated Statements of Cash Flows

(In thousands; unaudited)

	Three-Month Period						Twelve-Month Period
	Ended December 31,						Ended December 31,
	2022			2021			2022			2021
Cash flows from operating activities:
Net income (loss)	$	725		$	3,868		$	20,169		$	35,230
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		6,485			6,261			25,697			22,420
Impairment charge		1,600			1,419			1,600			3,023
Deferred income taxes		(2,211	)		6,206			(5,362	)		14,554
Non-cash interest		238			153			1,314			604
Amortization of syndication contracts		120			118			468			475
Payments on syndication contracts		(166	)		(119	)		(470	)		(473	)
Non-cash stock-based compensation		12,039			6,295			20,034			9,595
(Gain) loss on marketable securities		59			—			532			—
(Gain) loss on disposal of property and equipment		(37	)		(2,007	)		(636	)		(4,629	)
Change in fair value of contingent consideration		7,400			8,224			14,210			8,224
Changes in assets and liabilities:
(Increase) decrease in trade receivables, net		(31,983	)		(33,215	)		(9,687	)		(49,109	)
(Increase) decrease in prepaid expenses and other current assets		2,200			4,515			2,017			6,782
Increase (decrease) in accounts payable, accrued expenses and other liabilities		4,306			9,755			9,031			18,557
Net cash provided by operating activities		775			11,473			78,917			65,253
Cash flows from investing activities:
Proceeds from sale of property and equipment and intangibles		37			917			2,708			10,348
Purchases of property and equipment		(3,586	)		(1,550	)		(11,468	)		(5,819	)
Purchase of a businesses, net of cash acquired		—			(1,413	)		—			(14,260	)
Investment in variable interest entities, net of cash consolidated		—			—			(5,164	)		—
Purchases of marketable securities		(13,902	)		—			(106,382	)		—
Proceeds from marketable securities		12,946			—			59,814			27,800
Purchases of investments		—			—			—			(800	)
Net cash provided by (used in) investing activities		(4,505	)		(2,046	)		(60,492	)		17,269
Cash flows from financing activities:
Proceeds from stock option exercises		1			2			219			416
Tax payments related to shares withheld for share-based compensation plans		(4,257	)		(4,201	)		(4,524	)		(4,729	)
Payments on long-term debt		(751	)		(750	)		(3,252	)		(3,000	)
Dividends paid		(2,124	)		(2,136	)		(8,539	)		(8,531	)
Repurchase of Class A common stock		—			—			(11,280	)		—
Payment of contingent consideration		—			—			(65,340	)		—
Principal payments under finance lease obligation		(33	)		(126	)		(105	)		(126	)
Payments of capitalized debt offering and issuance costs		—			—			—			(604	)
Net cash used in financing activities		(7,164	)		(7,211	)		(92,821	)		(16,574	)
Effect of exchange rates on cash, cash equivalents and restricted cash		(2	)		(13	)		(3	)		(16	)
Net increase (decrease) in cash, cash equivalents and restricted cash		(10,896	)		2,203			(74,399	)		65,932
Cash, cash equivalents and restricted cash:
Beginning		122,340			183,640			185,843			119,911
Ending	$	111,444		$	185,843		$	111,444		$	185,843

Entravision Communications

Page 10 of 11

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						Twelve-Month Period
	Ended December 31,						Ended December 31,
		2022			2021			2022			2021
Consolidated adjusted EBITDA (1)	$	36,524		$	32,856		$	103,090		$	88,033
EBITDA attributable to redeemable noncontrolling interest		—			—			—			9,127
EBITDA attributable to noncontrolling interest		3,404			—			3,399			—
Interest expense		(3,651	)		(1,733	)		(10,876	)		(7,020	)
Interest income		948			10			2,864			245
Income tax (expense) benefit		(3,254	)		(6,777	)		(11,559	)		(18,679	)
Amortization of syndication contracts		(120	)		(118	)		(468	)		(475	)
Payments on syndication contracts		166			119			470			473
Non-cash stock-based compensation included in direct operating
expenses		(2,816	)		(2,263	)		(5,694	)		(3,234	)
Non-cash stock-based compensation included in corporate expenses		(9,223	)		(4,032	)		(14,340	)		(6,361	)
Depreciation and amortization		(6,485	)		(6,261	)		(25,697	)		(22,420	)
Change in fair value of contingent consideration		(7,400	)		(8,224	)		(14,210	)		(8,224	)
Non-recurring severance charge		(4,316	)		(423	)		(4,316	)		(423	)
Dividend income		—			2			20			213
Realized gain (loss) on marketable securities		(59	)		—			(532	)		—
Other operating gain (loss)		(1,393	)		2,131			(382	)		6,998
Impairment charge		(1,600	)		(1,419	)		(1,600	)		(3,023	)
Net (income) loss attributable to redeemable noncontrolling interest		—			—			—			(5,938	)
Net (income) loss attributable to noncontrolling interest		(2,353	)		—			(2,050	)		—
Net income (loss) attributable to common stockholders		(1,628	)		3,868			18,119			29,292
Depreciation and amortization		6,485			6,261			25,697			22,420
Impairment charge		1,600			1,419			1,600			3,023
Deferred income taxes		(2,211	)		6,206			(5,362	)		14,554
Amortization of debt issuance costs		238			153			1,314			604
Amortization of syndication contracts		120			118			468			475
Payments on syndication contracts		(166	)		(119	)		(470	)		(473	)
Non-cash stock-based compensation		12,039			6,295			20,034			9,595
Realized (gain) loss on marketable securities		59			—			532			—
(Gain) loss on disposal of property and equipment		(37	)		(2,007	)		(636	)		(4,629	)
Change in fair value of contingent consideration		7,400			8,224			14,210			8,224
Net (income) loss attributable to redeemable noncontrolling interest		—			—			—			5,938
Net income (loss) attributable to noncontrolling interest		2,353			—			2,050			—
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		(31,983	)		(33,215	)		(9,687	)		(49,109	)
(Increase) decrease in prepaid expenses and other assets		2,200			4,515			2,017			6,782
Increase (decrease) in accounts payable, accrued expenses and other liabilities		4,306			9,755			9,031			18,557
Net cash provided by (used in ) operating activities	$	775		$	11,473		$	78,917		$	65,253

(1) Consolidated adjusted EBITDA is defined on page 2.

Entravision Communications

Page 11 of 11

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						Twelve-Month Period
	Ended December 31,						Ended December 31,
		2022			2021			2022			2021
Consolidated adjusted EBITDA (1)	$	36,524		$	32,856		$	103,090		$	88,033
Net, cash interest expense (1)		(2,465	)		(1,570	)		(6,698	)		(6,171	)
Dividend income		—			2			20			213
Cash paid for income taxes		(5,465	)		(571	)		(16,921	)		(4,125	)
Capital expenditures (2)		(3,586	)		(1,550	)		(11,468	)		(5,819	)
Other operating gain (loss)		(1,393	)		2,131			(382	)		6,998
Non-recurring cash severance charge		(4,316	)		(423	)		(4,316	)		(423	)
Free cash flow (1)		19,299			30,875			63,325			78,706
Capital expenditures (2)		3,586			1,550			11,468			5,819
EBITDA attributable to redeemable noncontrolling interest		—			—			—			9,127
EBITDA attributable to noncontrolling interest		3,404			—			3,399			—
(Gain) loss on disposal of property and equipment		(37	)		(2,007	)		(636	)		(4,629	)
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		(31,983	)		(33,215	)		(9,687	)		(49,109	)
(Increase) decrease in prepaid expenses and other assets		2,200			4,515			2,017			6,782
Increase (decrease) in accounts payable, accrued expenses and other liabilities		4,306			9,755			9,031			18,557
Cash Flows From Operating Activities	$	775		$	11,473		$	78,917		$	65,253

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

(2)Capital expenditures are not part of the consolidated statement of operations.

XML

Document And Entity Information	Mar. 09, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Mar. 09, 2023
Entity Registrant Name	ENTRAVISION COMMUNICATIONS CORP
Entity Central Index Key	0001109116
Entity Emerging Growth Company	false
Securities Act File Number	001-15997
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	95-4783236
Entity Address, Address Line One	2425 Olympic Boulevard
Entity Address, Address Line Two	Suite 6000 West
Entity Address, City or Town	Santa Monica
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	90404
City Area Code	310
Local Phone Number	447-3870
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Class A Common Stock
Trading Symbol	EVC
Security Exchange Name	NYSE