SANTA MONICA, Calif., Nov. 4 /PRNewswire-FirstCall/ -- Entravision
Communications Corporation (NYSE: EVC) today reported financial results for
the three- and nine-month periods ended September 30, 2009.
Historical results, which are attached, are in thousands of U.S. dollars
(except share and per share data). The results of our outdoor operations are
presented in discontinued operations within the statements of operations in
accordance with ASC 360-10-45, "Impairment or Disposal of Long-Lived Assets".
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 below. Unaudited financial highlights are as follows:
Three-Month Period Nine-Month Period
Ended September 30, Ended September 30,
--------------------------- -------------------------
2009 2008 % Change 2009 2008 % Change
------- ------- ------- ------- ------- -------
Net revenue $50,754 $60,988 (17)% $141,165 $179,573 (21)%
Operating
expenses(1) 30,572 36,977 (17)% 92,031 109,284 (16)%
Corporate
expenses(2) 3,351 3,772 (11)% 10,602 12,703 (17)%
Consolidated
adjusted
EBITDA(3) 17,268 21,122 (18)% 40,307 60,156 (33)%
Free cash flow(4) $5,058 $8,756 (42)% $9,176 $23,042 (60)%
Free cash flow per
share, basic and
diluted(4) $0.06 $0.10 (40)% $0.11 $0.25 (56)%
Net income (loss)
from continuing
operations $673 $(354,491) NM $(15,648) $(349,881) (96)%
Net income (loss)
applicable to
common
stockholders $673 $(354,491) NM $(15,648) $(351,454) (96)%
Net income (loss)
per share from
continuing
operations
applicable to
common
stockholders,
basic and
diluted $0.01 $(3.98) NM $(0.19) $(3.80) (95)%
Net income (loss)
per share
applicable
to common
stockholders,
basic and
diluted $0.01 $(3.98) NM $(0.19) $(3.82) (95)%
Weighted average
common shares
outstanding,
basic 83,683,908 89,130,413 84,049,423 92,029,671
Weighted average
common shares
outstanding,
diluted 83,935,319 89,130,413 84,049,423 92,029,671
1. Operating expenses include direct operating, selling, general and
administrative expenses. Included in operating expenses are $0.4
million
and $0.4 million of non-cash stock-based compensation for the
three-month
periods ended September 30, 2009 and 2008, respectively and $1.1
million
and $1.0 million of non-cash stock-based compensation for the
nine-month
periods ended September 30, 2009 and 2008, respectively. Operating
expenses do not include corporate expenses, depreciation and
amortization, impairment charge, gain (loss) on sale of assets and loss
on debt extinguishment.
2. Corporate expenses include $0.3 million and $0.5 million of non-cash
stock-based compensation for the three-month periods ended September
30,
2009 and 2008, respectively and $1.1 million and $1.4 million of
non-cash
stock-based compensation for the nine-month periods ended September 30,
2009 and 2008, respectively.
3. Consolidated adjusted EBITDA means net income (loss) plus loss (gain)
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, loss on debt extinguishment,
loss from discontinued operations, income tax expense (benefit), equity
in net income (loss) of nonconsolidated affiliate and syndication
programming amortization less syndication programming payments. We use
the term consolidated adjusted EBITDA because that measure is defined
in
our syndicated bank credit facility and does not include loss (gain) on
sale of assets, depreciation and amortization, non-cash impairment
charge, non-cash stock-based compensation, net interest expense, loss
on
debt extinguishment, loss from discontinued operations, income tax
expense (benefit), equity in net income (loss) of nonconsolidated
affiliate 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, loss on debt
extinguishment,
loss from discontinued operations, income tax expense (benefit), equity
in net income (loss) of nonconsolidated affiliate 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 interest
income less the change in the fair value of our interest rate swaps.
Free
cash flow per share is defined as free cash flow divided by the diluted
weighted average common shares outstanding.
Commenting on the Company's earnings results, Walter F. Ulloa, Chairman and
Chief Executive Officer, said, "Our third quarter financial results continue
to be impacted by the recession and the challenging advertising environment.
We remain focused on managing our costs and maximizing our cash flows. Our
television and radio operations continue to deliver solid ratings in the
nation's most densely-populated Hispanic markets. We believe that we are well
positioned to benefit when the economy recovers, given the strength of our
brands and our ability to deliver the valuable Hispanic audience to
advertisers."
Financial Results
Three Months Ended September 30, 2009 Compared to Three Months Ended
September 30, 2008 (Unaudited)
Three-Month Period
Ended September 30,
------------------------------
2009 2008 % Change
------- ------- -------
Net revenue $50,754 $60,988 (17)%
Operating expenses(1) 30,572 36,977 (17)%
Corporate expenses(1) 3,351 3,772 (11)%
Depreciation and amortization 5,272 5,998 (12)%
Impairment charge - 440,020 NM
------- -------
Operating income (loss) 11,559 (425,779) NM
Interest expense, net (8,157) (7,550) 8%
------- -------
Income (loss) before income taxes 3,402 (433,329) NM
Income tax (expense) benefit (2,802) 78,847 NM
------- -------
Net income (loss) before equity in net
income (loss) of nonconsolidated affiliates
and discontinued operations 600 (354,482) NM
Equity in net income (loss) of
nonconsolidated affiliates, net of tax 73 (9) NM
------- -------
Net income (loss) $673 $(354,491) NM
======= =======
(1) Operating expenses and corporate expenses are defined above.
Net revenue decreased to $50.8 million for the three-month period ended
September 30, 2009 from $61.0 million for the three-month period ended
September 30, 2008, a decrease of $10.2 million. Of the overall decrease, $5.4
million came from our television segment and was primarily attributable to a
decrease in local and national advertising rates, which in turn was primarily
due to the continuing weak economy, partially offset by an increase in
retransmission consent revenue. Additionally, $4.8 million of the overall
decrease came from our radio segment and was primarily attributable to a
decrease in local and national advertising rates, which in turn was primarily
due to the continuing weak economy.
Operating expenses decreased to $30.6 million for the three-month period ended
September 30, 2009 from $37.0 million for the three-month period ended
September 30, 2008, a decrease of $6.4 million. The decrease was primarily
attributable to decreases in expenses associated with the decrease in net
revenue and salary expense due to reductions of personnel and salary
reductions.
Corporate expenses decreased to $3.4 million for the three-month period ended
September 30, 2009 from $3.8 million for the three-month period ended
September 30, 2008, a decrease of $0.4 million. The decrease was primarily
attributable to the decrease in salary expense due to salary reductions and a
decrease in employee benefits.
Nine Months Ended September 30, 2009 Compared to Nine Months Ended
September 30, 2008
(Unaudited)
Nine-Month Period
Ended September 30,
-------------------------------
2009 2008 % Change
------- ------- -------
Net revenue $141,165 $179,573 (21)%
Operating expenses(1) 92,031 109,284 (16)%
Corporate expenses(1) 10,602 12,703 (17)%
Depreciation and amortization 15,893 17,185 (8)%
Impairment charge 2,720 440,020 (99)%
------- -------
Operating income (loss) 19,919 (399,619) NM
Interest expense, net (21,374) (26,256) (19)%
Loss on debt extinguishment (4,716) - NM
------- -------
Loss before income taxes (6,171) (425,875) (99)%
Income tax (expense) benefit (9,311) 76,167 NM
------- -------
Net loss before equity in net loss
of nonconsolidated affiliates and
discontinued operations (15,482) (349,708) (96)%
Equity in net loss of nonconsolidated
affiliates, net of tax (166) (173) (4)%
------- -------
Loss from continuing operations (15,648) (349,881) (96)%
Loss from discontinued operations,
net of tax - (1,573) NM
------- -------
Net loss $(15,648) $(351,454) (96)%
======= =======
(1) Operating expenses and corporate expenses are defined above.
Net revenue decreased to $141.2 million for the nine-month period ended
September 30, 2009 from $179.6 million for the nine-month period ended
September 30, 2008, a decrease of $38.4 million. Of the overall decrease,
$20.5 million came from our television segment and was primarily attributable
to a decrease in local and national advertising rates, which in turn was
primarily due to the continuing weak economy, partially offset by an increase
in retransmission consent revenue. Additionally, $17.9 million of the overall
decrease came from our radio segment and was primarily attributable to a
decrease in local and national advertising sales and advertising rates, which
in turn was primarily due to the continuing weak economy.
Operating expenses decreased to $92.0 million for the nine-month period ended
September 30, 2009 from $109.3 million for the nine-month period ended
September 30, 2008, a decrease of $17.3 million. The decrease was primarily
attributable to decreases in expenses associated with the decrease in net
revenue and salary expense due to reductions of personnel and salary
reductions.
Corporate expenses decreased to $10.6 million for the nine-month period ended
September 30, 2009 from $12.7 million for the nine-month period ended
September 30, 2008, a decrease of $2.1 million. The decrease was primarily
attributable to the elimination of bonuses paid to executive officers, a
decrease in salary expense due to salary reductions and a decrease in employee
benefits.
Segment Results
The following represents selected unaudited segment information:
Three-Month Period
Ended September 30,
--------------------------------
2009 2008 % Change
-------- -------- --------
Net Revenue
Television $32,019 $37,479 (15)%
Radio 18,735 23,509 (20)%
-------- --------
Total $50,754 $60,988 (17)%
Operating Expenses (1)
Television $17,601 $21,908 (20)%
Radio 12,971 15,069 (14)%
-------- --------
Total $30,572 $36,977 (17)%
Corporate Expenses(1) $3,351 $3,772 (11)%
Consolidated adjusted EBITDA(1) $17,268 $21,122 (18)%
(1) Operating expenses, Corporate expenses, and Consolidated adjusted
EBITDA are defined above.
Entravision Communications Corporation will hold a conference call to discuss
its 2009 third quarter results on November 4, 2009 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 at
www.entravision.com.
Entravision Communications Corporation is a diversified Spanish-language media
company utilizing a combination of television and radio 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 20 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. 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.
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,
------------------------ -------------------
2009 2008 2009 2008
---------- ---------- ---------- ----------
Net revenue $50,754 $60,988 $141,165 $179,573
---------- ---------- ---------- ----------
Expenses:
Direct operating expenses 21,030 25,583 63,690 76,258
Selling, general and
administrative expenses 9,542 11,394 28,341 33,026
Corporate expenses 3,351 3,772 10,602 12,703
Depreciation and amortization 5,272 5,998 15,893 17,185
Impairment charge - 440,020 2,720 440,020
---------- ---------- ---------- ----------
39,195 486,767 121,246 579,192
---------- ---------- ---------- ----------
Operating income
(loss) 11,559 (425,779) 19,919 (399,619)
Interest expense (8,227) (8,172) (21,762) (27,595)
Interest income 70 622 388 1,339
Loss on debt extinguishment - - (4,716) -
---------- ---------- ---------- ----------
Income (loss) before
income taxes 3,402 (433,329) (6,171) (425,875)
Income tax (expense) benefit (2,802) 78,847 (9,311) 76,167
---------- ---------- ---------- ----------
Income (loss) before
equity in net income
(loss) of nonconsolidated
affiliate and
discontinued operations 600 (354,482) (15,482) (349,708)
Equity in net income (loss) of
nonconsolidated affiliate, net
of tax 73 (9) (166) (173)
---------- ---------- ---------- ----------
Income (loss) from continuing
operations 673 (354,491) (15,648) (349,881)
Loss from discontinued operations,
net of tax - - - (1,573)
---------- ---------- ---------- ----------
Net income (loss) applicable to
common stockholders $673 $(354,491) $(15,648) $(351,454)
========== ========== ========== ==========
Basic and diluted earnings per
share:
Net income (loss) per share from
continuing operations applicable
to common stockholders, basic and
diluted $0.01 $(3.98) $(0.19) $(3.80)
========== ========== ========== ==========
Net loss per share from discontinued
operations, basic and diluted $- $- $- $(0.02)
========== ========== ========== ==========
Net income (loss) per share
applicable to common stockholders,
basic and diluted $0.01 $(3.98) $(0.19) $(3.82)
========== ========== ========== ==========
Weighted average common shares
outstanding, basic 83,683,908 89,130,413 84,049,423 92,029,671
========== ========== ========== ==========
Weighted average common shares
outstanding, diluted 83,935,319 89,130,413 84,049,423 92,029,671
========== ========== ========== ==========
Entravision Communications Corporation
Consolidated Statements of Cash Flows
(Unaudited; in thousands)
Three-Month Period Nine-Month Period
Ended September 30, Ended September 30,
-------------------------------------------
2009 2008 2009 2008
---------- ---------- ---------- ----------
Cash flows from operating activities:
Net income (loss) $673 $(354,491) $(15,648) $(351,454)
Adjustments to reconcile net
income (loss) to net cash
provided by operating
activities:
Depreciation and
amortization 5,272 5,998 15,893 17,185
Impairment charge - 440,020 2,720 440,020
Deferred income taxes 2,548 (79,198) 8,534 (77,537)
Amortization of debt issue
costs 104 100 298 302
Amortization of syndication
contracts 441 700 1,689 2,255
Payments on syndication
contracts (706) (713) (2,119) (2,135)
Equity in net (income) loss
of nonconsolidated affiliate (73) 9 166 173
Non-cash stock-based
compensation 702 896 2,205 2,450
Gain on sale of media
properties and other assets - - (102) -
Non-cash expenses related to
debt extinguishment - - 945 -
Change in fair value of
interest rate swap
agreements (1,314) 436 (3,850) 3,647
Changes in assets and
liabilities, net of
effect of acquisitions
and dispositions:
(Increase) decrease in
accounts receivable (1,828) 3,490 (3,100) 3,648
Increase in prepaid
expenses and other
assets (810) (178) (621) (100)
Increase (decrease) in
accounts payable, accrued
expenses and other
liabilities 1,085 (1,445) 3,187 (3,205)
Effect of discontinued
operations - - - (2,230)
---------- ---------- ---------- ----------
Net cash provided by
operating activities 6,094 15,624 10,197 33,019
---------- ---------- ---------- ----------
Cash flows from investing
activities:
Proceeds from sale of
property and equipment
and intangibles - - 114 101,498
Purchases of property and
equipment and
intangibles (2,589) (5,007) (9,207) (13,415)
Purchase of a business - - - (22,885)
Deposits on acquisitions - (200) - (200)
Effect of discontinued
operations - - - (194)
---------- ---------- ---------- ----------
Net cash provided by
(used in) investing
activities (2,589) (5,207) (9,093) 64,804
---------- ---------- ---------- ----------
Cash flows from financing
activities:
Proceeds from issuance of
common stock 53 299 255 785
Payments on long-term
debt (1,572) (2) (42,572) (11,036)
Repurchase of Class U
common stock - - - (10,380)
Repurchase of Class A
common stock - (10,245) (1,075) (46,538)
Excess tax benefits from
exercise of stock options - - - (25)
Payments of deferred debt
and offering costs - - (1,182) -
---------- ---------- ---------- ----------
Net cash used in
financing
activities (1,519) (9,948) (44,574) (67,194)
---------- ---------- ---------- ----------
Net increase
(decrease)
in cash and cash
equivalents 1,986 469 (43,470) 30,629
Cash and cash equivalents:
Beginning 18,838 117,105 64,294 86,945
---------- ---------- ---------- ----------
Ending $20,824 $117,574 $20,824 $117,574
========== ========== ========== ==========
Entravision Communications Corporation
Reconciliation of Consolidated Adjusted EBITDA to Cash Flows From
Operating Activities
(Unaudited; in thousands)
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,
--------------------------------------
2009 2008 2009 2008
-------- -------- -------- --------
Consolidated adjusted EBITDA (1) $17,268 $21,122 $40,307 $60,156
Interest expense (8,227) (8,172) (21,762) (27,595)
Interest income 70 622 388 1,339
Loss on debt extinguishment - - (4,716) -
Income tax (expense) benefit (2,802) 78,847 (9,311) 76,167
Amortization of syndication
contracts (441) (700) (1,689) (2,255)
Payments on syndication contracts 706 713 2,119 2,135
Non-cash stock-based compensation
included in direct operating
expenses (159) (173) (489) (462)
Non-cash stock-based compensation
included in selling, general
and administrative expenses (204) (217) (618) (579)
Non-cash stock-based compensation
included in corporate expenses (339) (506) (1,098) (1,409)
Depreciation and amortization (5,272) (5,998) (15,893) (17,185)
Impairment charge - (440,020) (2,720) (440,020)
Equity in net income (loss) of
nonconsolidated affiliates 73 (9) (166) (173)
Loss from discontinued operations - - - (1,573)
-------- -------- -------- --------
Net income (loss) 673 (354,491) (15,648) (351,454)
Depreciation and amortization 5,272 5,998 15,893 17,185
Impairment charge - 440,020 2,720 440,020
Deferred income taxes 2,548 (79,198) 8,534 (77,537)
Amortization of debt issue costs 104 100 298 302
Amortization of syndication
contracts 441 700 1,689 2,255
Payments on syndication contracts (706) (713) (2,119) (2,135)
Equity in net (income) loss of
nonconsolidated affiliate (73) 9 166 173
Non-cash stock-based compensation 702 896 2,205 2,450
Gain on sale of media properties
and other assets - - (102) -
Non-cash expenses related to debt
extinguishment - - 945 -
Change in fair value of interest
rate swap agreements (1,314) 436 (3,850) 3,647
Changes in assets and liabilities,
net of effect of acquisitions
and dispositions:
(Increase) decrease in
accounts receivable (1,828) 3,490 (3,100) 3,648
Increase in prepaid expenses
and other assets (810) (178) (621) (100)
Increase (decrease) in
accounts payable, accrued
expenses and other
liabilities 1,085 (1,445) 3,187 (3,205)
Effect of discontinued operations - - - (2,230)
-------- -------- -------- --------
Cash flows from operating
activities $6,094 $15,624 $10,197 $33,019
======== ======== ======== ========
(1) Consolidated adjusted EBITDA is defined above.
Entravision Communications Corporation
Reconciliation of Free Cash Flow to Net Income (Loss)
(Unaudited; in thousands)
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,
---------------------------------------
2009 2008 2009 2008
-------- -------- -------- --------
Consolidated adjusted EBITDA(1) $17,268 $21,122 $40,307 $60,156
Net interest expense(1) 9,367 7,013 24,926 22,306
Cash paid for income taxes 254 350 777 1,394
Capital expenditures(2) 2,589 5,003 5,428 13,414
-------- -------- -------- --------
Free cash flow(1) 5,058 8,756 9,176 23,042
Capital expenditures(2) 2,589 5,003 5,428 13,414
Non-cash interest expense relating
to amortization of debt finance
costs and interest rate swap
agreements 1,210 (537) 3,552 (3,950)
Loss on debt extinguishment - - (4,716) -
Non-cash income tax (expense)
benefit (2,548) 79,197 (8,534) 77,561
Amortization of syndication
contracts (441) (700) (1,689) (2,255)
Payments on syndication contracts 706 713 2,119 2,135
Non-cash stock-based compensation
included in direct operating
expenses (159) (173) (489) (462)
Non-cash stock-based compensation
included in selling, general
and administrative expenses (204) (217) (618) (579)
Non-cash stock-based compensation
included in corporate expenses (339) (506) (1,098) (1,409)
Depreciation and amortization (5,272) (5,998) (15,893) (17,185)
Impairment charge - (440,020) (2,720) (440,020)
Equity in net income (loss) of
nonconsolidated affiliates 73 (9) (166) (173)
Loss from discontinued operations - - - (1,573)
-------- -------- -------- --------
Net income (loss) $673 $(354,491)$(15,648) $(351,454)
======== ======== ======== ========
(1) Consolidated adjusted EBITDA, net interest expense and free cash flow
are defined above.
(2) Capital expenditures is not part of the consolidated statement of
operations.
SOURCE Entravision Communications Corporation
Christopher T. Young, Chief Financial Officer, Entravision Communications
Corporation, +1-310-447-3870; or Mike Smargiassi, or Christian Nery, both of
Brainerd Communicators, Inc., +1-212-986-6667
