EXHIBIT 99.1
ENTRAVISION COMMUNICATIONS CORPORATION REPORTS
FOURTH QUARTER AND YEAR END 2009 RESULTS
SANTA MONICA, CALIFORNIA, March 4, 2010 – Entravision Communications Corporation (NYSE: EVC) today reported financial results for the three- and twelve-month periods ended December 31, 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 FASB Accounting Standards Codification (ASC) 360, “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 beginning on page 7. Unaudited financial highlights are as follows:
| | | Three Months Ended | | | | | | Twelve Months Ended | | | | |
| | | December 31, | | | | | | December 31, | | | | |
| | | 2009 | | | 2008 | | | % Change | | | 2009 | | | 2008 | | | % Change | |
| Net revenue | | $ | 48,066 | | | $ | 52,762 | | | | (9 | )% | | $ | 189,231 | | | $ | 232,335 | | | | (19 | )% |
| Operating expenses (1) | | | 30,149 | | | | 35,226 | | | | (14 | )% | | | 122,180 | | | | 144,510 | | | | (15 | )% |
| Corporate expenses (2) | | | 4,316 | | | | 4,414 | | | | (2 | )% | | | 14,918 | | | | 17,117 | | | | (13 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Consolidated adjusted EBITDA (3) | | | 15,005 | | | | 13,948 | | | | 8 | % | | | 55,312 | | | | 74,104 | | | | (25 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Free cash flow (4) | | $ | 4,780 | | | $ | 3,532 | | | | 35 | % | | $ | 13,956 | | | $ | 26,572 | | | | (47 | )% |
| Free cash flow per share, basic and diluted (4) | | $ | 0.06 | | | $ | 0.04 | | | | 50 | % | | $ | 0.17 | | | $ | 0.29 | | | | (41 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Loss from continuing operations | | $ | (52,023 | ) | | $ | (134,126 | ) | | | (61 | )% | | $ | (67,671 | ) | | $ | (484,007 | ) | | | (86 | )% |
| Net loss applicable to common stockholders | | $ | (52,023 | ) | | $ | (136,483 | ) | | | (62 | )% | | $ | (67,671 | ) | | $ | (487,937 | ) | | | (86 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net loss per share from continuing operations | | | | | | | | | | | | | | | | | | | | | | | | |
| applicable to common stockholders, basic and diluted | | $ | (0.62 | ) | | $ | (1.56 | ) | | | (60 | )% | | $ | (0.81 | ) | | $ | (5.34 | ) | | | (85 | )% |
| Net loss per share applicable | | | | | | | | | | | | | | | | | | | | | | | | |
| to common stockholders, basic and diluted | | $ | (0.62 | ) | | $ | (1.58 | ) | | | (61 | )% | | $ | (0.81 | ) | | $ | (5.39 | ) | | | (85 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Weighted average common shares outstanding, basic | | | 83,745,069 | | | | 86,185,661 | | | | | | | | 83,972,709 | | | | 90,560,685 | | | | | |
| Weighted average common shares outstanding, diluted | | | 83,745,069 | | | | 86,185,661 | | | | | | | | 83,972,709 | | | | 90,560,685 | | | | | |
| (1) | Operating expenses include direct operating, selling, general and administrative expenses. Included in operating expenses are $0.9 million and $0.4 million of non-cash stock-based compensation for the three-month periods ended December 31, 2009 and 2008, respectively and $2.0 million and $1.4 million of non-cash stock-based compensation for the twelve-month periods ended December 31, 2009 and 2008, 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 $0.9 million and $0.5 million of non-cash stock-based compensation for the three-month periods ended December 31, 2009 and 2008, respectively and $2.0 million and $1.9 million of non-cash stock-based compensation for the twelve-month periods ended December 31, 2009 and 2008, 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, gain (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 gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation, net interest expense, gain (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, gain (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 basic or diluted weighted average common shares outstanding. |
Entravision Communications
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Commenting on the Company's earnings results, Walter F. Ulloa, Chairman and Chief Executive Officer, said, “During 2009, we were confronted with a significant advertising downturn, both in television and radio, primarily as a result of the global financial crisis and recession. Nevertheless, our audience shares remained strong in the nation’s most densely populated Hispanic markets. Although EBITDA declined for the full year 2009 compared to 2008, our focus on managing costs and maximizing cash flows were factors in increasing our EBITDA for the fourth quarter of 2009. Additionally, we anticipate that retransmission consent revenue will continue to be a growing source of revenue, along with advertising revenue from World Cup and political activity during 2010."
Impairment of Radio Segment Intangibles
The Company recorded an impairment charge of $48 million related to radio FCC broadcasting licenses. The write-down was pursuant to ASC 350, which requires that goodwill and certain intangible assets be tested for impairment at least annually, or more frequently if events or changes in circumstances indicate the assets might be impaired.
Financial Results
Cautionary Note Regarding Preliminary Quarterly Results
In connection with the preparation of our financial statements for the three- and twelve-month periods ended December 31, 2009, we are currently in the process of finalizing the provision for income taxes, which we intend to complete in time to permit a timely filing of our annual report for the period ended December 31, 2009.
Three Months Ended December 31, 2009 Compared to Three Months Ended December 31, 2008
(Unaudited)
| | | Three Months Ended | | |
| | | December 31, | | |
| | | 2009 | | | 2008 | | | % Change |
| Net revenue | | $ | 48,066 | | | $ | 52,762 | | | | (9 | )% |
| Operating expenses (1) | | | 30,149 | | | | 35,226 | | | | (14 | )% |
| Corporate expenses (1) | | | 4,316 | | | | 4,414 | | | | (2 | )% |
| Depreciation and amortization | | | 5,140 | | | | 6,227 | | | | (17 | )% |
| Impairment charge | | | 47,928 | | | | 170,436 | | | | (72 | )% |
| | | | | | | | | | | | | |
| Operating loss | | | (39,467 | ) | | | (163,541 | ) | | | (76 | )% |
| Interest expense, net | | | (6,115 | ) | | | (14,943 | ) | | | (59 | )% |
| Gain on debt extinguishment | | | - | | | | 9,813 | | | NM |
| | | | | | | | | | | | | |
| Loss before income taxes | | | (45,582 | ) | | | (168,671 | ) | | | (73 | )% |
| | | | | | | | | | | | | |
| Income tax (expense) benefit | | | (6,371 | ) | | | 34,538 | | | | NM | |
| Net loss before equity in net income (loss) of | | | | | | | | | | | | |
| nonconsolidated affiliates and discontinued operations | | | (51,953 | ) | | | (134,133 | ) | | | (61 | )% |
| Equity in net income (loss) of nonconsolidated affiliates | | | (70 | ) | | | 7 | | | NM |
| | | | | | | | | | | | | |
| Net loss before discontinued operations | | | (52,023 | ) | | | (134,126 | ) | | | (61 | )% |
| Loss from discontinued operations, net of tax | | | - | | | | (2,357 | ) | | NM |
| | | | | | | | | | | | | |
| Net loss | | $ | (52,023 | ) | | $ | (136,483 | ) | | | (62 | )% |
(1) Operating expenses and corporate expenses are defined on page 1.
Entravision Communications
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Net revenue decreased to $48.1 million for the three-month period ended December 31, 2009 from $52.8 million for the three-month period ended December 31, 2008, a decrease of $4.7 million. Of the overall decrease, $3.7 million 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 weak economy. Additionally, $1.0 million of the overall decrease 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 weak economy, partially offset by an increase in retransmission consent revenue in the amount of $2.2 million.
Operating expenses decreased to $30.1 million for the three-month period ended December 31, 2009 from $35.2 million for the three-month period ended December 31, 2008, a decrease of $5.1 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 $4.3 million for the three-month period ended December 31, 2009 from $4.4 million for the three-month period ended December 31, 2008, a decrease of $0.1 million. The decrease was primarily attributable to the decrease in professional fees and salary expense due to salary reductions, partially offset by an increase in non-cash stock based compensation of $0.4 million.
Twelve Months Ended December 31, 2009 Compared to Twelve Months Ended December 31, 2008
(Unaudited)
| | | Twelve Months Ended | |
| | | December 31, | |
| | | 2009 | | | 2008 | | | % Change | |
| Net revenue | | $ | 189,231 | | | $ | 232,335 | | | | (19 | )% |
| Operating expenses (1) | | | 122,180 | | | | 144,510 | | | | (15 | )% |
| Corporate expenses (1) | | | 14,918 | | | | 17,117 | | | | (13 | )% |
| Depreciation and amortization | | | 21,033 | | | | 23,412 | | | | (10 | )% |
| Impairment charge | | | 50,648 | | | | 610,456 | | | | (92 | )% |
| | | | | | | | | | | | | |
| Operating loss | | | (19,548 | ) | | | (563,160 | ) | | | (97 | )% |
| Interest expense, net | | | (27,489 | ) | | | (41,199 | ) | | | (33 | )% |
| Gain (loss) on debt extinguishment | | | (4,716 | ) | | | 9,813 | | | NM | |
| | | | | | | | | | | | | |
| Loss before income taxes | | | (51,753 | ) | | | (594,546 | ) | | | (91 | )% |
| | | | | | | | | | | | | |
| Income tax (expense) benefit | | | (15,682 | ) | | | 110,705 | | | NM | |
| Net loss before equity in net loss of | | | | | | | | | | | | |
| nonconsolidated affiliates and discontinued operations | | | (67,435 | ) | | | (483,841 | ) | | | (86 | )% |
| Equity in net loss of nonconsolidated affiliates | | | (236 | ) | | | (166 | ) | | | 42 | % |
| | | | | | | | | | | | | |
| Net loss before discontinued operations | | | (67,671 | ) | | | (484,007 | ) | | | (86 | )% |
| Loss from discontinued operations, net of tax | | | - | | | | (3,930 | ) | | NM | |
| | | | | | | | | | | | | |
| Net loss | | $ | (67,671 | ) | | $ | (487,937 | ) | | | (86 | )% |
(1) Operating expenses and corporate expenses are defined on page 1.
Net revenue decreased to $189.2 million for the twelve-month period ended December 31, 2009 from $232.3 million for the twelve-month period ended December 31, 2008, a decrease of $43.1 million. Of the overall decrease, $21.6 million 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 weak economy. Additionally, $21.5 million of the overall decrease 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 weak economy, partially offset by an increase in retransmission consent revenue in the amount of $9.5 million.
Entravision Communications
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Operating expenses decreased to $122.2 million for the twelve-month period ended December 31, 2009 from $144.5 million for the twelve-month period ended December 31, 2008, a decrease of $22.3 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 $14.9 million for the twelve-month period ended December 31, 2009 from $17.1 million for the twelve-month period ended December 31, 2008, a decrease of $2.2 million. The decrease was primarily attributable to a decrease in professional fees and salary expense due to salary reductions.
Segment Results
The following represents selected unaudited segment information:
| | | Three Months Ended | | |
| | | December 31, | | |
| | | 2009 | | | 2008 | | | % Change | |
| Net Revenue | | | | | | | | | |
| Television | | $ | 32,400 | | | $ | 33,410 | | | | (3 | )% |
| Radio | | | 15,666 | | | | 19,352 | | | | (19 | )% |
| Total | | $ | 48,066 | | | $ | 52,762 | | | | (9 | )% |
| | | | | | | | | | | | | |
| Operating Expenses (1) | | | | | | | | | | | | |
| Television | | $ | 17,640 | | | $ | 21,082 | | | | (16 | )% |
| Radio | | | 12,509 | | | | 14,144 | | | | (12 | )% |
| Total | | $ | 30,149 | | | $ | 35,226 | | | | (14 | )% |
| | | | | | | | | | | | | |
| Corporate Expenses (1) | | $ | 4,316 | | | $ | 4,414 | | | | (2 | )% |
| | | | | | | | | | | | | |
| Consolidated adjusted EBITDA (1) | | $ | 15,005 | | | $ | 13,948 | | | | 8 | % |
(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 2009 fourth quarter results on March 4, 2010 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 owns and/or operates 53 primary television stations and 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.
# # #
(Financial Table Follows)
For more information, please contact:
Christopher T. Young Mike Smargiassi/Christian Nery
Chief Financial Officer Brainerd Communicators, Inc.
Entravision Communications Corporation 212-986-6667
310-447-3870
r
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, | |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| | | | | | | | | | | | | |
| Net revenue | | $ | 48,066 | | | $ | 52,762 | | | $ | 189,231 | | | $ | 232,335 | |
| | | | | | | | | | | | | | | | | |
| Expenses: | | | | | | | | | | | | | | | | |
| Direct operating expenses | | | 20,212 | | | | 24,543 | | | | 83,902 | | | | 100,801 | |
| Selling, general and administrative expenses | | | 9,937 | | | | 10,683 | | | | 38,278 | | | | 43,709 | |
| Corporate expenses | | | 4,316 | | | | 4,414 | | | | 14,918 | | | | 17,117 | |
| Depreciation and amortization | | | 5,140 | | | | 6,227 | | | | 21,033 | | | | 23,412 | |
| Impairment charge | | | 47,928 | | | | 170,436 | | | | 50,648 | | | | 610,456 | |
| | | | 87,533 | | | | 216,303 | | | | 208,779 | | | | 795,495 | |
| Operating loss | | | (39,467 | ) | | | (163,541 | ) | | | (19,548 | ) | | | (563,160 | ) |
| Interest expense | | | (6,186 | ) | | | (15,498 | ) | | | (27,948 | ) | | | (43,093 | ) |
| Interest income | | | 71 | | | | 555 | | | | 459 | | | | 1,894 | |
| Gain (loss) on debt extinguishment | | | - | | | | 9,813 | | | | (4,716 | ) | | | 9,813 | |
| Loss before income taxes | | | (45,582 | ) | | | (168,671 | ) | | | (51,753 | ) | | | (594,546 | ) |
| Income tax (expense) benefit | | | (6,371 | ) | | | 34,538 | | | | (15,682 | ) | | | 110,705 | |
| Loss before equity in net income (loss) of | | | | | | | | | | | | | | | | |
| nonconsolidated affiliate and discontinued operations | | | (51,953 | ) | | | (134,133 | ) | | | (67,435 | ) | | | (483,841 | ) |
| Equity in net income (loss) of nonconsolidated affiliate | | | (70 | ) | | | 7 | | | | (236 | ) | | | (166 | ) |
| Loss from continuing operations | | | (52,023 | ) | | | (134,126 | ) | | | (67,671 | ) | | | (484,007 | ) |
| Loss from discontinued operations, net of tax | | | - | | | | (2,357 | ) | | | - | | | | (3,930 | ) |
| Net loss applicable to common stockholders | | $ | (52,023 | ) | | $ | (136,483 | ) | | $ | (67,671 | ) | | $ | (487,937 | ) |
| | | | | | | | | | | | | | | | | |
| Basic and diluted earnings per share: | | | | | | | | | | | | | | | | |
| Loss per share from continuing operations applicable to | | | | | | | | | | | | | | | | |
| common stockholders, basic and diluted | | $ | (0.62 | ) | | $ | (1.56 | ) | | $ | (0.81 | ) | | $ | (5.34 | ) |
| Loss per share from discontinued operations, basic and diluted | | $ | - | | | $ | (0.03 | ) | | $ | - | | | $ | (0.04 | ) |
| Net loss per share applicable to common stockholders, | | | | | | | | | | | | | | | | |
| basic and diluted | | $ | (0.62 | ) | | $ | (1.58 | ) | | $ | (0.81 | ) | | $ | (5.39 | ) |
| | | | | | | | | | | | | | | | | |
| Weighted average common shares outstanding, basic | | | 83,745,069 | | | | 86,185,661 | | | | 83,972,709 | | | | 90,560,685 | |
| Weighted average common shares outstanding, diluted | | | 83,745,069 | | | | 86,185,661 | | | | 83,972,709 | | | | 90,560,685 | |
Ent
Entravision Communications
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Entravision Communications Corporation
Consolidated Statements of Cash Flows
(Unaudited; in thousands)
| | | | | | | | | Three-Month Period | | | Twelve-Month Period |
| | | | | | | | | Ended December 31, | | | Ended December 31, |
| | | | | | | | | 2009 | | | 2008 | | | 2009 | | | 2008 |
| | | | | | | | | | | | | | | | | | |
| Cash flows from operating activities: | | | | | | | | | | | |
| | Net loss | $ | (52,023) | | $ | (136,483) | | $ | (67,671) | | $ | (487,937) |
| | Adjustments to reconcile net loss to net cash provided by operating activities: | | | | | | | | | | | |
| | | Depreciation and amortization | | 5,140 | | | 6,227 | | | 21,033 | | | 23,412 |
| | | Impairment charge | | | 47,928 | | | 170,436 | | | 50,648 | | | 610,456 |
| | | Deferred income taxes | | | 6,714 | | | (34,653) | | | 15,248 | | | (112,190) |
| | | Amortization of debt issue costs | | 104 | | | 157 | | | 402 | | | 459 |
| | | Amortization of syndication contracts | | 292 | | | 628 | | | 1,981 | | | 2,883 |
| | | Payments on syndication contracts | | (717) | | | (705) | | | (2,836) | | | (2,840) |
| | | Equity in net (income) loss of nonconsolidated affiliate | | 70 | | | (7) | | | 236 | | | 166 |
| | | Non-cash stock-based compensation | | 1,829 | | | 903 | | | 4,034 | | | 3,353 |
| | | Gain on sale of media properties and other assets | | (6) | | | - | | | (108) | | | - |
| | | (Gain) loss on debt extinguishment | | - | | | (9,813) | | | 945 | | | (9,813) |
| | | Change in fair value of interest rate swap agreements | | (3,129) | | | 8,001 | | | (6,979) | | | 11,648 |
| | | Changes in assets and liabilities, net of effect of acquisitions and dispositions: | | | | | | | | | | | |
| | | | Decrease in accounts receivable | | 3,670 | | | 7,508 | | | 570 | | | 11,156 |
| | | | (Increase) decrease in prepaid expenses and other assets | | 137 | | | 903 | | | (484) | | | 803 |
| | | | Increase (decrease) in accounts payable, accrued expenses and other liabilities | | (1,417) | | | (2,860) | | | 1,770 | | | (6,065) |
| | | Effect of discontinued operations | | - | | | 957 | | | - | | | (1,273) |
| | | | | Net cash provided by operating activities | | 8,592 | | | 11,199 | | | 18,789 | | | 44,218 |
| Cash flows from investing activities: | | | | | | | | | | | |
| | Proceeds from sale of property and equipment and intangibles | | 8 | | | - | | | 122 | | | 101,498 |
| | Purchases of property and equipment and intangibles | | (1,758) | | | (3,458) | | | (10,965) | | | (16,873) |
| | Purchase of a business | | | - | | | - | | | - | | | (22,885) |
| | Deposits on acquisitions | | | - | | | - | | | - | | | (200) |
| | Effect of discontinued operations | | - | | | - | | | - | | | (194) |
| | | | | Net cash provided by (used in) investing activities | | (1,750) | | | (3,458) | | | (10,843) | | | 61,346 |
| Cash flows from financing activities: | | | | | | | | | | | |
| | Proceeds from issuance of common stock | | - | | | - | | | 255 | | | 785 |
| | Payments on long-term debt | | | - | | | (56,666) | | | (42,572) | | | (67,702) |
| | Repurchase of Class U common stock | | - | | | - | | | - | | | (10,380) |
| | Repurchase of Class A common stock | | - | | | (4,299) | | | (1,075) | | | (50,837) |
| | Excess tax benefits from exercise of stock options | | - | | | (56) | | | - | | | (81) |
| | Payments of deferred debt and offering costs | | - | | | - | | | (1,182) | | | - |
| | | | | Net cash used in financing activities | | - | | | (61,021) | | | (44,574) | | | (128,215) |
| | | | | Net increase (decrease) in cash and cash equivalents | | 6,842 | | | (53,280) | | | (36,628) | | | (22,651) |
| Cash and cash equivalents: | | | | | | | | | | | | |
| | Beginning | | | | | 20,824 | | | 117,574 | | | 64,294 | | | 86,945 |
| | Ending | | | | | $ | 27,666 | | $ | 64,294 | | $ | 27,666 | | $ | 64,294 |
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Entravision Communications
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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 | | | Twelve-Month Period |
| | | | | | | | | | Ended December 31, | | | Ended December 31, |
| | | | | | | | | | 2009 | | | 2008 | | | 2009 | | | 2008 |
| Consolidated adjusted EBITDA (1) | | | | $ | 15,005 | | $ | 13,948 | | $ | 55,312 | | $ | 74,104 |
| | | | | | | | | | | | | | | | | | | |
| Interest expense | | | | | | (6,186) | | | (15,498) | | | (27,948) | | | (43,093) |
| Interest income | | | | | | | 71 | | | 555 | | | 459 | | | 1,894 |
| Gain (loss) on debt extinguishment | | | | | - | | | 9,813 | | | (4,716) | | | 9,813 |
| Income tax (expense) benefit | | | | | (6,371) | | | 34,538 | | | (15,682) | | | 110,705 |
| Amortization of syndication contracts | | | | | (292) | | | (628) | | | (1,981) | | | (2,883) |
| Payments on syndication contracts | | | | | 717 | | | 705 | | | 2,836 | | | 2,840 |
| Non-cash stock-based compensation included in direct operating | | | | | | | | | | | | |
| | expenses | | | | | | | (365) | | | (171) | | | (854) | | | (633) |
| Non-cash stock-based compensation included in selling, general | | | | | | | | | | | | |
| | and administrative expenses | | | | | (524) | | | (215) | | | (1,142) | | | (794) |
| Non-cash stock-based compensation included in corporate expenses | | | (940) | | | (517) | | | (2,038) | | | (1,926) |
| Depreciation and amortization | | | | | (5,140) | | | (6,227) | | | (21,033) | | | (23,412) |
| Impairment charge | | | | | | (47,928) | | | (170,436) | | | (50,648) | | | (610,456) |
| Equity in net income (loss) of nonconsolidated affiliates | | | (70) | | | 7 | | | (236) | | | (166) |
| Loss from discontinued operations | | | | | - | | | (2,357) | | | - | | | (3,930) |
| Net loss | | | | | | | | (52,023) | | | (136,483) | | | (67,671) | | | (487,937) |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| Depreciation and amortization | | | | | 5,140 | | | 6,227 | | | 21,033 | | | 23,412 |
| Impairment charge | | | | | | 47,928 | | | 170,436 | | | 50,648 | | | 610,456 |
| Deferred income taxes | | | | | | 6,714 | | | (34,653) | | | 15,248 | | | (112,190) |
| Amortization of debt issue costs | | | | | 104 | | | 157 | | | 402 | | | 459 |
| Amortization of syndication contracts | | | | | 292 | | | 628 | | | 1,981 | | | 2,883 |
| Payments on syndication contracts | | | | | (717) | | | (705) | | | (2,836) | | | (2,840) |
| Equity in net (income) loss of nonconsolidated affiliate | | | | 70 | | | (7) | | | 236 | | | 166 |
| Non-cash stock-based compensation | | | | | 1,829 | | | 903 | | | 4,034 | | | 3,353 |
| Gain on sale of media properties and other assets | | | | (6) | | | - | | | (108) | | | - |
| (Gain) loss on debt extinguishment | | | | | - | | | (9,813) | | | 945 | | | (9,813) |
| Change in fair value of interest rate swap agreements | | | | (3,129) | | | 8,001 | | | (6,979) | | | 11,648 |
| Changes in assets and liabilities, net of effect of acquisitions and dispositions: | | | | | | | | | | | |
| | Decrease in accounts receivable | | | | | 3,670 | | | 7,508 | | | 570 | | | 11,156 |
| | (Increase) decrease in prepaid expenses and other assets | | | 137 | | | 903 | | | (484) | | | 803 |
| | Increase (decrease) in accounts payable, accrued expenses and other liabilities | | (1,417) | | | (2,860) | | | 1,770 | | | (6,065) |
| Effect of discontinued operations | | | | | - | | | 957 | | | - | | | (1,273) |
| Cash flows from operating activities | | | | $ | 8,592 | | $ | 11,199 | | $ | 18,789 | | $ | 44,218 |
(1) Consolidated adjusted EBITDA is defined on page 1.
Ent
Entravision Communications
Page 8 of 8
Entravision Communications Corporation
Reconciliation of Free Cash Flow to Net Loss
(Unaudited; in thousands)
The most directly comparable GAAP financial measure is net loss. A reconciliation of this non-GAAP measure to net loss for each of the periods presented is as follows:
| | | Three-Month Period | | | Twelve-Month Period | |
| | | Ended December 31, | | | Ended December 31, | |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| Consolidated adjusted EBITDA (1) | | $ | 15,005 | | | $ | 13,948 | | | $ | 55,312 | | | $ | 74,104 | |
| Net interest expense (1) | | | 9,140 | | | | 6,787 | | | | 34,066 | | | | 29,093 | |
| Cash paid for income taxes | | | (343 | ) | | | 171 | | | | 434 | | | | 1,566 | |
| Capital expenditures (2) | | | 1,428 | | | | 3,458 | | | | 6,856 | | | | 16,873 | |
| Free cash flow (1) | | | 4,780 | | | | 3,532 | | | | 13,956 | | | | 26,572 | |
| | | | | | | | | | | | | | | | | |
| Capital expenditures (2) | | | 1,428 | | | | 3,458 | | | | 6,856 | | | | 16,873 | |
| Non-cash interest (expense) income relating to amortization of debt | | | | | | | | | | | | | | | | |
| finance costs and interest rate swap agreements | | | 3,025 | | | | (8,156 | ) | | | 6,577 | | | | (12,106 | ) |
| Non-cash income tax (expense) benefit | | | (6,714 | ) | | | 34,709 | | | | (15,248 | ) | | | 112,271 | |
| Gain (loss) on debt extinguishment | | | - | | | | 9,813 | | | | (4,716 | ) | | | 9,813 | |
| Amortization of syndication contracts | | | (292 | ) | | | (628 | ) | | | (1,981 | ) | | | (2,883 | ) |
| Payments on syndication contracts | | | 717 | | | | 705 | | | | 2,836 | | | | 2,840 | |
Non-cash stock-based compensation included in direct operating expenses | | | (365 | ) | | | (171 | ) | | | (854 | ) | | | (633 | ) |
Non-cash stock-based compensation included in selling, general and administrative expenses | | | (524 | ) | | | (215 | ) | | | (1,142 | ) | | | (794 | ) |
| Non-cash stock-based compensation included in corporate expenses | | | (940 | ) | | | (517 | ) | | | (2,038 | ) | | | (1,926 | ) |
| Depreciation and amortization | | | (5,140 | ) | | | (6,227 | ) | | | (21,033 | ) | | | (23,412 | ) |
| Impairment charge | | | (47,928 | ) | | | (170,436 | ) | | | (50,648 | ) | | | (610,456 | ) |
| Equity in net income (loss) of nonconsolidated affiliates | | | (70 | ) | | | 7 | | | | (236 | ) | | | (166 | ) |
| Loss from discontinued operations | | | - | | | | (2,357 | ) | | | - | | | | (3,930 | ) |
| Net loss | | $ | (52,023 | ) | | $ | (136,483 | ) | | $ | (67,671 | ) | | $ | (487,937 | ) |
(1)
(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.
