Nov. 4, 2009 (PR Newswire) -- 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.
