-Net Revenue Decreases 7% in 2008-
SANTA MONICA, Calif., Feb. 26 /PRNewswire-FirstCall/ -- Entravision Communications Corporation (NYSE: EVC) today reported financial results for the three- and twelve-month periods ended December 31, 2008.
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 SFAS 144, 'Accounting for the 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 8. Unaudited financial highlights are as follows:
Three Months Ended
December 31,
2008 2007 % Change
Net revenue $52,762 $62,514 (16)%
Operating expenses (1) 35,226 36,119 (2)%
Corporate expenses (2) 4,414 4,669 (5)%
Consolidated adjusted EBITDA (3) 13,948 22,283 (37)%
Free cash flow (4) $3,532 $13,064 (73)%
Free cash flow per share, basic
and diluted (4) $0.04 $0.13 (69)%
Income (loss) from continuing
operations $(134,126) $26,114 NM
Net loss applicable to
common stockholders $(136,483) $(47,051) 190%
Net income (loss) per share from
continuing operations applicable
to common stockholders,
basic and diluted $(1.56) $0.26 NM
Net loss per share applicable
to common stockholders,
basic and diluted $(1.58) $(0.48) 229%
Weighted average common shares
outstanding, basic 86,185,661 98,806,107
Weighted average common shares
outstanding, diluted 86,185,661 99,276,283
Twelve Months Ended
December 31,
2008 2007 % Change
Net revenue $232,335 $250,046 (7)%
Operating expenses (1) 144,510 143,875 0%
Corporate expenses (2) 17,117 17,353 (1)%
Consolidated adjusted EBITDA (3) 74,104 91,779 (19)%
Free cash flow (4) $26,572 $50,383 (47)%
Free cash flow per share, basic
and diluted (4) $0.29 $0.49 (41)%
Income (loss) from continuing
operations $(484,007) $40,040 NM
Net loss applicable to
common stockholders $(487,937) $(43,117) NM
Net income (loss) per share from
continuing operations applicable
to common stockholders,
basic and diluted $(5.34) $0.39 NM
Net loss per share applicable
to common stockholders,
basic and diluted $(5.39) $(0.42) NM
Weighted average common shares
outstanding, basic 90,560,685 102,382,307
Weighted average common shares
outstanding, diluted 90,560,685 103,020,657
(1) Operating expenses include direct operating, selling, general and
administrative expenses. Included in operating expenses are $0.4
million and $0.2 million of non-cash stock-based compensation for the
three-month periods ended December 31, 2008 and 2007, respectively
and $1.4 million and $1.1 million of non-cash stock-based compensation
for the twelve-month periods ended December 31, 2008 and 2007,
respectively. Operating expenses do not include corporate expenses,
depreciation and amortization, impairment loss, gain (loss) on sale of
assets and gain on debt extinguishment.
(2) Corporate expenses include $0.5 million and $0.5 million of non-cash
stock-based compensation for the three-month periods ended December
31, 2008 and 2007, respectively and $1.9 million and $1.9 million of
non-cash stock-based compensation for the twelve-month periods ended
December 31, 2008 and 2007, respectively.
(3) Consolidated adjusted EBITDA means operating income (loss) plus (gain)
loss on sale of assets, depreciation and amortization, non-cash
impairment loss, non-cash stock-based compensation included in
operating and corporate expenses 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
loss, non-cash stock-based compensation, net interest expense, gain
on debt extinguishment, income tax expense (benefit), equity in net
income (loss) of nonconsolidated affiliate, loss from discontinued
operations and syndication programming amortization and does include
syndication programming payments. The definition of operating income
(loss), and thus consolidated adjusted EBITDA, excludes (gain) loss
on sale of assets, depreciation and amortization, non-cash impairment
loss, non-cash stock-based compensation, net interest expense, gain on
debt extinguishment, income tax expense (benefit), equity in net
income (loss) of nonconsolidated affiliate, loss from discontinued
operations and syndication programming amortization and includes
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
of sales of assets, non-cash depreciation and amortization, non-cash
impairment loss, non-cash stock-based compensation, net interest
expense, gain on debt extinguishment, income tax expense (benefit),
equity in net income (loss) of nonconsolidated affiliate, loss from
discontinued operations 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 fourth quarter results reflect the continuing impact of the global financial crisis and the recession, resulting in an advertising downturn. We are continuing to focus on debt reduction and are committed to further reducing our costs and operating as efficiently as possible in order to maximize our cash flows, without sacrificing the quality of our content or marketing efforts. Our audience shares remain strong in the nation's most densely populated Hispanic markets.'
The Company also announced that it repurchased 3.3 million shares of Class A common stock for approximately $4.2 million in the fourth quarter of 2008. The Company repurchased 12.1 million shares of Class A common stock for approximately $50.4 million in 2008. The Company's Board of Directors has approved the retirement of all treasury stock repurchased as of December 31, 2008, and a total of 14.1 million treasury shares were retired on December 31, 2008.
Impairment of Television and Radio Segment Intangibles
In the fourth quarter of 2008, the Company recorded an impairment charge of $170 million, primarily related to television and radio FCC broadcasting licenses and goodwill as a result of an appraisal recently conducted on certain television and radio assets.
