Entravision Communications Corporation Reports First Quarter 2014 Results

Entravision Communications Corporation Reports First Quarter 2014 Results

- Announces quarterly cash dividend of $0.025 per share -

SANTA MONICA, Calif., May 8, 2014 /PRNewswire/ -- Entravision Communications Corporation (NYSE: EVC) today reported financial results for the three-month period ended March 31, 2014.

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

Ended March 31,

2014 2013 % Change
---- ---- --------

Net revenue $52,656 $49,087 7%

Operating expenses (1) 33,507 31,908 5%

Corporate expenses (2) 4,836 4,497 8%


Consolidated adjusted EBITDA (3) 14,985 13,380 12%


Free cash flow (4) $9,353 $3,438 172%

Free cash flow per share, basic (4) $0.11 $0.04 175%

Free cash flow per share, diluted (4) $0.10 $0.04 150%


Net income (loss) $4,388 $(957) NM


Net income (loss) per share,

basic and diluted $0.05 $(0.01) NM


Cash dividends declared per common share $0.03 $ - 100%


Weighted average common shares outstanding, basic 88,683,948 86,459,017

Weighted average common shares outstanding, diluted 90,943,866 86,459,017


(1) Operating expenses include direct operating, selling, general and administrative expenses. Included in operating expenses are $0.1 and $0.2 million of non-cash stock-
based compensation for the three-month periods ended March 31, 2014 and 2013, 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 $0.6 million and $0.7 million of non-cash stock-based compensation for the three-month periods ended March 31, 2014 and 2013, 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

(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"), which were fully redeemed on August 2, 2013, 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 continued growth in core advertising revenue (excluding retransmission consent revenue and political advertising revenue) as our television segment again outperformed the television broadcast industry. Continuing the trend of the last several years, we also experienced an increase in retransmission consent revenue. We also improved our free cash flow and net income over the first quarter of 2013 as we benefited from the successful refinancing of our debt. Our audience shares remain strong in the nation's most densely populated Latino markets, and we believe we are well positioned to benefit as the U.S. Latino market continues to expand and advertisers increasingly recognize the importance of reaching our target audience."

Announces Quarterly Cash Dividend

The Company announced today that its Board of Directors has approved a quarterly cash dividend to shareholders of $0.025 per share of the Company's Class A, Class B and Class U common stock, in an aggregate amount of approximately $2.2 million. The quarterly dividend will be payable on June 30, 2014 to shareholders of record as of the close of business on June 13, 2014, and the common stock will trade ex-dividend on June 11, 2014. As previously announced, the Company currently anticipates that cash dividends will be paid on a quarterly basis in the future. Any decision to pay cash dividends in the future will be subject to further approval by the Board.


Financial Results


Three-Month Period Ended March 31, 2014 Compared to Three-Month
Period Ended
March 31, 2013
(Unaudited)


Three-Month Period

Ended March 31,

2014 2013 % Change
---- ---- --------

Net
revenue $52,656 $49,087 7%

Operating
expenses
(1) 33,507 31,908 5%

Corporate
expenses
(1) 4,836 4,497 8%

Depreciation
and
amortization 3,515 3,955 (11)%


Operating
income
(loss) 10,798 8,727 24%

Interest
expense,
net (3,426) (7,777) (56)%


Income
(loss)
before
income
taxes 7,372 950 676%


Income
tax
(expense)
benefit (2,984) (1,907) 56%
------ ------


Net
income
(loss) $4,388 $(957) NM
====== =====


(1) Operating expenses and corporate expenses are defined on page 1.
Net revenue increased to $52.7 million for the three-month period ended March 31, 2014 from $49.1 million for the three-month period ended March 31, 2013, an increase of $3.6 million. Of the overall increase, approximately $2.8 million was generated by our television segment and was primarily attributable to increases in local advertising revenue and retransmission consent revenue. The remaining $0.8 million of the overall increase was generated by our radio segment and was primarily attributable to an increase in national advertising revenue.

Operating expenses increased to $33.5 million for the three-month period ended March 31, 2014 from $31.9 million for the three-month period ended March 31, 2013, an increase of $1.6 million. The increase was primarily attributable to an increase in salary expense, employee benefits costs and payroll taxes associated with the increase in salary expense.

Corporate expenses increased to $4.8 million for the three-month period ended March 31, 2014 from $4.5 million for the three-month period ended March 31, 2013, an increase of $0.3 million. The increase was primarily attributable to increases in salary expense and interactive media-related expenses.

Segment Results

The following represents selected unaudited segment information:


Three-Month Period

Ended March 31,

2014 2013 % Change
---- ---- --------

Net Revenue

Television $37,741 $34,952 8%

Radio $14,915 $14,135 6%

Total $52,656 $49,087 7%


Operating
Expenses (1)

Television $19,451 $18,914 3%

Radio 14,056 12,994 8%

Total $33,507 $31,908 5%


Corporate
Expenses (1) $4,836 $4,497 8%


Consolidated
adjusted
EBITDA (1) $14,985 $13,380 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 2014 first quarter results on May 8, 2014 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 20 of the nation's top 50 Latino markets. The company owns and/or operates 58 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.


Entravision Communications Corporation

Consolidated Balance Sheets

(In thousands)


March 31, December 31,

2014 2013
---- ----

(Unaudited)


ASSETS

Current assets

Cash and cash
equivalents $47,125 $43,822

Trade
receivables,
net 53,721 57,043

Deferred income
taxes 6,100 6,100

Prepaid
expenses and
other current
assets 4,892 4,087


Total
current
assets 111,838 111,052

Property and equipment, net 57,709 58,765

Intangible assets subject to
amortization, net 19,186 19,812

Intangible assets not
subject to amortization 220,701 220,701

Goodwill 36,647 36,647

Deferred income taxes 81,894 83,856

Other assets 6,802 7,404
----- -----

Total
assets $534,777 $538,237
======== ========



LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Current
maturities of
long-term
debt $3,750 $3,750

Advances
payable,
related
parties 118 118

Accounts
payable and
accrued
expenses 24,313 31,246


Total
current
liabilities 28,181 35,114

Long-term debt, less
current maturities 359,375 360,313

Other long-term liabilities 7,320 6,786
----- -----

Total
liabilities 394,876 402,213
------- -------


Stockholders' equity

Class A common
stock 6 6

Class B common
stock 2 2

Class U common
stock 1 1

Additional
paid-in
capital 927,497 927,377

Accumulated
deficit (787,208) (791,596)

Accumulated
other
comprehensive
income (loss) (397) 234


Total
stockholders'
equity 139,901 136,024
------- -------

Total
liabilities
and
stockholders'
equity $534,777 $538,237
======== ========



Entravision Communications Corporation

Consolidated Statements of Operations

(In thousands, except share and per share data)

(Unaudited)


Three-Month Period

Ended March 31,
---------------

2014 2013
---- ----




Net revenue $52,656 $49,087
------- -------


Expenses:

Direct
operating
expenses 24,876 24,225

Selling,
general and
administrative
expenses 8,631 7,683

Corporate
expenses 4,836 4,497

Depreciation
and
amortization 3,515 3,955

41,858 40,360
------ ------

Operating
income
(loss) 10,798 8,727

Interest expense (3,438) (7,784)

Interest income 12 7

Income
(loss)
before
income
taxes 7,372 950

Income tax (expense)
benefit (2,984) (1,907)
------ ------

Net income (loss) $4,388 $(957)



Basic and diluted
earnings per share:

Net income (loss) per
share,

basic and
diluted $0.05 $(0.01)



Cash dividends
declared per
common share $0.03 $ -
===


Weighted average
common shares
outstanding, basic 88,683,948 86,459,017
========== ==========

Weighted average
common shares
outstanding, diluted 90,943,866 86,459,017
========== ==========



Entravision Communications Corporation

Consolidated Statements of Cash Flows

(In thousands; unaudited)


Three-Month Period

Ended March 31,
---------------

2014 2013
---- ----

Cash flows from operating activities:

Net income
(loss) $4,388 $(957)

Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:

Depreciation
and
amortization 3,515 3,955

Deferred income
taxes 2,495 1,842

Amortization of
debt issue
costs 201 455

Amortization of
syndication
contracts 122 151

Payments on
syndication
contracts (158) (325)

Non-cash
stock-based
compensation 708 872

Changes in assets and liabilities:

(Increase)
decrease in
accounts
receivable 3,510 1,916

(Increase)
decrease in
prepaid
expenses and
other assets (993) (828)

Increase
(decrease) in
accounts
payable,
accrued
expenses and
other
liabilities (7,041) (8,692)
------ ------

Net cash
provided by
(used in)
operating
activities 6,747 (1,611)
----- ------

Cash flows from investing activities:

Purchases of
property and
equipment and
intangibles (1,918) (2,555)

Net cash
provided by
(used in)
investing
activities (1,918) (2,555)
------ ------

Cash flows from financing activities:

Proceeds from
stock option
exercises 1,636 351

Payments on
long-term
debt (938) -

Dividends paid (2,224) -

Net cash
provided by
(used in)
financing
activities (1,526) 351
------ ---

Net increase
(decrease) in
cash and cash
equivalents 3,303 (3,815)

Cash and cash equivalents:

Beginning 43,822 36,130
------ ------

Ending $47,125 $32,315
======= =======



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

Ended March 31,
---------------

2014 2013
---- ----

Consolidated adjusted
EBITDA (1) $14,985 $13,380

Interest expense (3,438) (7,784)

Interest income 12 7

Income tax (expense)
benefit (2,984) (1,907)

Amortization of syndication
contracts (122) (151)

Payments on syndication
contracts 158 325

Non-cash stock-based
compensation included in
direct operating expenses (90) (184)

Non-cash stock-based
compensation included in
corporate expenses (618) (688)

Depreciation and
amortization (3,515) (3,955)

Net income (loss) 4,388 (957)

Depreciation and
amortization 3,515 3,955

Deferred income taxes 2,495 1,842

Amortization of debt issue
costs 201 455

Amortization of syndication
contracts 122 151

Payments on syndication
contracts (158) (325)

Non-cash stock-based
compensation 708 872

Changes in assets and liabilities, net of effect
of acquisitions and dispositions:

(Increase) decrease in
accounts receivable 3,510 1,916

(Increase) decrease in
prepaid expenses and other
assets (993) (828)

Increase (decrease) in
accounts payable, accrued
expenses and other
liabilities (7,041) (8,692)

Cash flows from operating
activities $6,747 $(1,611)
====== =======


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





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

Ended March 31,

2014 2013
---- ----

Consolidated adjusted EBITDA (1) $14,985 $13,380

Net interest expense (1) 3,225 7,322

Cash paid (refunded) for income taxes 489 65

Capital expenditures (2) 1,918 2,555

Free cash flow (1) 9,353 3,438


Capital expenditures (2) 1,918 2,555

Amortization of debt issue costs (201) (455)

Non-cash income tax expense (2,495) (1,842)

Amortization of syndication contracts (122) (151)

Payments on syndication contracts 158 325

Non-cash stock-based compensation included in direct operating

expenses (90) (184)

Non-cash stock-based compensation included in corporate expenses (618) (688)

Depreciation and amortization (3,515) (3,955)

Net income (loss) $4,388 $(957)
====== =====


(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

Entravision Communications Corporation

CONTACT: Christopher T. Young, Chief Financial Officer, Entravision Communications Corporation, 310-447-3870; or Mike Smargiassi/Brad Edwards, Brainerd Communicators, Inc., 212-986-6667

Web Site: http://www.entravision.com


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