Entravision Communications (EVC) Q2 2025 Earnings Call August 05, 2025 05:00 PM ET Speaker0Greetings and welcome to the Entravision Second Quarter twenty twenty five Earnings Conference Call. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Roy Nieh. Thank you. You may begin.Speaker1Good afternoon everyone and welcome to Entravision's second quarter twenty twenty five earnings call. I am Roy Near, Vice President of Financial Reporting and Investor Relations. Jo ...

PART I. FINANCIAL INFORMATION [Financial Statements](index=7&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Entravision's Q2 2025 financials reflect a net loss and negative operating cash flow, driven by strategic realignment and Q1 impairment charges [Condensed Consolidated Balance Sheets](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of June 30, 2025, total assets and stockholders' equity significantly decreased, while total liabilities saw a slight reduction Balance Sheet Summary (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $178,079 | $186,300 | | **Total Assets** | **$417,998** | **$487,278** | | **Total Current Liabilities** | $71,723 | $61,626 | | **Total Liabilities** | **$327,989** | **$341,258** | | **Total Stockholders' Equity** | **$90,009** | **$146,020** | - Assets held for sale of **$7.2 million** were recognized as of June 30, 2025, which were not present at year-end 2024[17](index=17&type=chunk) [Condensed Consolidated Statements of Operations](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Despite a 22% net revenue increase in Q2 2025, the company reported a net loss from continuing operations due to significant Q1 charges Statement of Operations Highlights (in thousands, except EPS) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Revenue** | $100,735 | $82,654 | $192,586 | $160,830 | | **Operating Income (Loss)** | ($848) | ($3,344) | ($53,618) | ($10,993) | | **Net Income (Loss) from Continuing Operations** | ($3,500) | $3,732 | ($51,275) | ($3,778) | | **Net Income (Loss) Attributable to Common Stockholders** | ($3,337) | ($31,680) | ($51,303) | ($80,570) | | **Diluted EPS from Continuing Operations** | ($0.04) | $0.04 | ($0.56) | ($0.04) | - For the six months ended June 30, 2025, the company recorded an impairment charge of **$23.7 million** and a loss on lease abandonment of **$25.2 million**, which were not present in the prior year period and significantly impacted the net loss[18](index=18&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For the first six months of 2025, net cash used in operating activities was **$7.4 million**, a significant reversal from the prior year's positive cash flow Cash Flow Summary for Six-Month Periods Ended June 30 (in thousands) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | ($7,416) | $51,071 | | **Net cash provided by (used in) investing activities** | ($4,822) | ($26,937) | | **Net cash provided by (used in) financing activities** | ($19,163) | ($44,726) | | **Net increase (decrease) in cash** | ($31,401) | ($20,594) | - Significant non-cash charges in the first six months of 2025 included a **$23.7 million** impairment charge and a **$25.2 million** loss on lease abandonment, which were adjustments in the reconciliation of net loss to operating cash flow[23](index=23&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=NOTES%20TO%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS%20%28UNAUDITED%29) Notes detail strategic realignment, Q1 2025 impairment and lease abandonment charges, a credit facility amendment, and a **$31.45 million** lawsuit - Effective July 1, 2024, the company realigned its operating segments into two reportable segments: Media and Advertising Technology & Services; prior periods have been recast to conform to this new presentation[10](index=10&type=chunk)[127](index=127&type=chunk) - In Q2 2024, the company sold its Entravision Global Partners (EGP) business following Meta's decision to end its Authorized Sales Partners program; EGP results are reported as discontinued operations[9](index=9&type=chunk)[29](index=29&type=chunk)[135](index=135&type=chunk) - In Q1 2025, the company recorded a **$23.7 million** impairment charge related to two Mexico television stations which are now classified as assets held for sale[33](index=33&type=chunk)[67](index=67&type=chunk)[182](index=182&type=chunk) - In Q1 2025, the company recorded a **$25.2 million** loss on lease abandonment after vacating its Santa Monica corporate headquarters[69](index=69&type=chunk)[121](index=121&type=chunk)[182](index=182&type=chunk) - Subsequent to the quarter end, on July 15, 2025, the company amended its credit agreement to, among other things, increase the maximum permitted Total Net Leverage Ratio and reduce the minimum permitted Interest Coverage Ratio[155](index=155&type=chunk) - On July 22, 2025, the former landlord of the Santa Monica property filed a lawsuit against the company seeking at least **$31.45 million** in damages for an alleged breach of lease[157](index=157&type=chunk)[245](index=245&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=41&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management attributes Q2 2025 revenue growth to Advertising Technology & Services, with liquidity sufficient despite EGP divestiture's cash flow impact - The company has been reorganized into two segments: Media (television, radio, digital marketing) and Advertising Technology & Services (programmatic ad services via Smadex and Adwake)[160](index=160&type=chunk) - The Media segment faces challenges from declining broadcast audiences and a shift in advertising from traditional to digital media[204](index=204&type=chunk) - The Advertising Technology & Services segment is experiencing a global trend of revenue shifting to programmatic, demanding more efficiency and lower costs from intermediaries[215](index=215&type=chunk) - The company made a voluntary prepayment of **$10 million** on its Credit Facility in June 2025[166](index=166&type=chunk)[227](index=227&type=chunk) - Cash flow from operations was negative **$7.4 million** for the first six months of 2025, a sharp contrast to the positive **$51.1 million** in the same period of 2024, primarily due to working capital changes and a higher net loss[228](index=228&type=chunk) [Segment Operations](index=46&type=section&id=Segment%20Operations) Q2 2025 Media segment revenue declined **8%** with **94%** profit drop, while Advertising Technology & Services revenue surged **66%** with **190%** profit increase Segment Performance - Q2 2025 vs Q2 2024 (in thousands) | Segment | Net Revenue (Q2'25) | Revenue % Change | Segment Operating Profit (Q2'25) | Profit % Change | | :--- | :--- | :--- | :--- | :--- | | **Media** | $45,413 | (8)% | $354 | (94)% | | **Advertising Technology & Services** | $55,322 | 66% | $5,179 | 190% | - Media segment revenue decline was primarily due to a **$3.2 million** decrease in broadcast advertising and a **$1.1 million** decrease in retransmission consent revenue[202](index=202&type=chunk) - Advertising Technology & Services segment direct operating expenses increased **94%** to **$10.9 million** in Q2 2025, driven by higher cloud infrastructure costs and salary/bonus expenses to support revenue growth[132](index=132&type=chunk)[216](index=216&type=chunk) [Liquidity and Capital Resources](index=50&type=section&id=Liquidity%20and%20Capital%20Resources) Company liquidity is sufficient for 12 months, supported by **$64.5 million** cash and amended credit facility, despite EGP divestiture's cash flow impact - As of June 30, 2025, the company had cash and cash equivalents of **$64.5 million** and marketable securities of **$4.8 million**[221](index=221&type=chunk) - The disposition of the EGP business is expected to continue to significantly lower consolidated revenue and materially adversely affect cash flow from operations in future periods[223](index=223&type=chunk) - Anticipated capital expenditures for the full year 2025 are approximately **$7.5 million**[230](index=230&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=54&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) Market risk stems from **$177.8 million** variable-rate debt and foreign currency exposure; a 100 basis point SOFR increase impacts annual interest expense by **$1.8 million** - As of June 30, 2025, the company had **$177.8 million** of variable rate bank debt outstanding[234](index=234&type=chunk) - A hypothetical 100 basis point (1%) change in the SOFR interest rate would impact annual interest expense by **$1.8 million**[235](index=235&type=chunk) - The company has foreign currency risk from operations denominated in currencies other than the U.S. dollar, primarily the Euro, but does not currently engage in hedging[236](index=236&type=chunk)[238](index=238&type=chunk) [Controls and Procedures](index=54&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[239](index=239&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter[242](index=242&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=56&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company faces ordinary legal proceedings, including a **$31.45 million** lawsuit from its former Santa Monica landlord for alleged lease breach - On July 22, 2025, the company was sued by its former landlord in Santa Monica for at least **$31,450,000** in damages related to a terminated lease[157](index=157&type=chunk)[245](index=245&type=chunk) [Risk Factors](index=56&type=section&id=ITEM%201A.%20RISK%20FACTORS) The report states there are no new risk factors to disclose for the period - The report states there are no new risk factors to disclose[246](index=246&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=56&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) No shares repurchased in Q2 2025; **$11.3 million** of **$20 million** share repurchase program utilized to date - No shares were repurchased during the first six months of 2025[248](index=248&type=chunk) - As of June 30, 2025, the company has used **$11.3 million** of its **$20 million** authorized share repurchase program[248](index=248&type=chunk) [Other Information](index=56&type=section&id=ITEM%205.%20OTHER%20INFORMATION) No Rule 10b5-1 trading arrangements were adopted or terminated; Board approved revised indemnification agreement for directors and officers - On August 1, 2025, the Board approved a revised, more comprehensive indemnification agreement for its directors and executive officers[252](index=252&type=chunk) [Exhibits](index=59&type=section&id=ITEM%206.%20EXHIBITS) This section lists exhibits filed with the Form 10-Q, including executive compensation, credit agreement amendments, and certifications

Entravision Communications Page 1 of 6 Exhibit 99.1 BURBANK, CALIFORNIA, August 5, 2025 – Entravision Communications Corporation (NYSE: EVC), a media and advertising technology company, today announced financial results for its second quarter ended June 30, 2025. "While our Media segment net revenue decreased 8% compared to the second quarter of 2024, we're encouraged by the sequential improvement from the first quarter of 2025 and the achievement of positive operating profit, further validating our expande ...

Group 1 - The shares of Entravision Communications (NYSE: EVC) have declined to previous lows since the last article was published in November [1] - The decline in share price occurs despite the company's involvement in advertising technology and broadcasting [1] Group 2 - The article reflects the author's personal opinions and does not involve any compensation from the company mentioned [1]

Financial Data and Key Metrics Changes - The company reported a consolidated revenue increase of 17% to $91.9 million in Q1 2025 compared to Q1 2024 [4][14] - Excluding non-cash accounting charges, the operating loss was $3.9 million in Q1 2025 [4][25] - The net loss attributable to common stockholders was $48 million, primarily due to non-cash charges [25] Business Line Data and Key Metrics Changes - Media segment revenue decreased by 10% to $41 million in Q1 2025 compared to Q1 2024, attributed to reduced ad spending from local advertisers [5][15] - Advertising Technology and Services (ATS) segment revenue increased by 57% to $50.9 million in Q1 2025 compared to Q1 2024, driven by more customers and higher spend per customer [9][14] Market Data and Key Metrics Changes - The media segment experienced a decline in active local advertisers, although the average spend per advertiser increased slightly [5] - The ATS segment's growth was supported by investments in technology and sales capacity, leading to significant revenue growth [9][21] Company Strategy and Development Direction - The company is focusing on increasing local sales capacity and expanding digital sales operations in the media segment [7][11] - In the ATS segment, the strategy includes investing in engineering to enhance technology and AI capabilities [9][11] - The overall goal is to optimize organizational structure and reduce expenses while driving revenue growth [12][17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the need for improvement in operating performance, particularly in the media segment [4][22] - There is optimism regarding the ATS segment's growth opportunities, with expectations for continued revenue increases [14][21] - The company has not changed forecasts or strategic plans in response to recent trade policy changes [30][32] Other Important Information - Corporate expenses were reduced by 36% to $7.8 million in Q1 2025 compared to Q1 2024 [22][23] - The company incurred non-cash charges totaling $48.9 million due to asset write-downs and office relocation [24][25] - The company maintains a strong balance sheet with $78 million in cash and marketable securities [25][26] Q&A Session Summary Question: How has Entravision's business been impacted by recent changes in trade policy and tariffs? - Management indicated that the advertising services business is not directly subject to tariffs, and many advertisers are local service businesses not impacted by tariffs [30][31] - No changes have been made to forecasts or strategic plans in response to trade policy changes [32]

Entravision Communications (EVC) Q1 2025 Earnings Call May 08, 2025 05:00 PM ET Speaker0 Greetings, and welcome to the Intravision First Quarter twenty twenty five Earnings Conference Call. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Roynier. Please go ahead. Speaker1 Good afternoon everyone and welcome to Entravision's first quarter twenty twenty five earnings call. I am Roy Near, Vice President of Financial Reporting and Investor Relations. Joining me to ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER 1-15997 ENTRAVISION COMMUNICATIONS CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction o ...

[Q1 2025 Financial and Operational Highlights](index=1&type=section&id=Q1%202025%20Financial%20and%20Operational%20Highlights) Entravision reported a 17% increase in consolidated net revenue for Q1 2025, despite a significant operating loss due to non-cash charges [Overall Performance](index=1&type=section&id=Overall%20Performance) For Q1 2025, Entravision saw consolidated net revenue increase by 17% but recorded a $52.8 million operating loss due to non-cash charges Q1 2025 Key Financial Metrics (vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Consolidated Net Revenue** | $91.9 million | $78.2 million | +17% | | **Operating Income (Loss)** | ($52.8 million) | ($7.6 million) | +590% (Loss) | | **Net Income (Loss) per Share** | ($0.53) | ($0.55) | N/A | | **Quarterly Dividend per Share** | $0.05 | $0.05 | No Change | - The company incurred significant non-cash charges of **$48.9 million** in Q1 2025 from the planned sale of two television stations in Mexico and the vacation of its previous headquarters[4](index=4&type=chunk) - Cash, cash equivalents, and marketable securities stood at **$78.1 million** as of March 31, 2025, down from **$100.6 million** at the end of 2024, partly due to **$15.2 million** in net cash used in operations and a **$4.5 million** dividend payment[4](index=4&type=chunk) - The Board of Directors approved a quarterly cash dividend of **$0.05 per share**, payable on June 30, 2025[4](index=4&type=chunk) [Segment Performance](index=1&type=section&id=Segment%20Performance) In Q1 2025, the Advertising Technology & Services segment grew significantly, while the Media segment experienced a revenue decline and operating loss Q1 2025 Segment Performance (vs. Q1 2024) | Segment | Net Revenue (Q1 2025) | Revenue Change (YoY) | Operating Profit (Loss) (Q1 2025) | Operating Profit Change (YoY) | | :--- | :--- | :--- | :--- | :--- | | **Media** | $41.0 million | -10% | ($2.6 million) | From $3.0 million Profit | | **Advertising Technology & Services** | $50.9 million | +57% | $6.5 million | +296% | - The Media segment's revenue decline was primarily due to a decrease in broadcast advertising revenue and retransmission consent revenue[4](index=4&type=chunk) - The Advertising Technology & Services segment's strong performance was driven by increases in advertising revenue, including higher advertising spend per client[4](index=4&type=chunk) [Strategic Initiatives](index=3&type=section&id=Strategic%20Initiatives) Entravision's 2025 strategies focus on content, sales growth, AdTech expansion, cost efficiency, and maintaining a strong balance sheet - The company's key strategic initiatives for 2025 and beyond include: - **Provide Trusted News and Content**: Doubled local news production to better serve audiences[8](index=8&type=chunk) - **Grow Local Sales and Digital Advertising**: Invested in new sales leadership and personnel to drive local and digital ad sales[8](index=8&type=chunk) - **Grow Advertising Technology & Services**: Focus on strengthening its proprietary technology platform and expanding its sales team, especially in the U.S[8](index=8&type=chunk) - **Drive Cost Efficiencies**: Control supporting services and corporate expenses while investing in revenue-driving areas[8](index=8&type=chunk) - **Maintain a Strong Balance Sheet**: Prioritize low leverage and financial stability[8](index=8&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) This section provides detailed financial statements, including segment results, consolidated operations, balance sheets, and cash flows [Segment Results](index=5&type=section&id=Segment%20Results%20%28Unaudited%29) In Q1 2025, the Media segment's revenue declined, leading to an operating loss, while the Advertising Technology & Services segment saw significant revenue and profit growth Segment Results for the Three-Month Period Ended March 31 (In thousands) | Description | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | **Net revenue** | | | | | Media | $40,977 | $45,766 | (10)% | | Advertising Technology & Services | $50,874 | $32,410 | 57% | | **Consolidated Net Revenue** | **$91,851** | **$78,176** | **17%** | | **Segment operating profit (loss)** | | | | | Media | ($2,614) | $3,001 | * | | Advertising Technology & Services | $6,508 | $1,643 | 296% | | **Consolidated Segment Operating Profit** | **$3,894** | **$4,644** | **(16)%** | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations%20%28Unaudited%29) For Q1 2025, net revenue increased by 17%, but significant impairment and lease abandonment charges led to a substantial operating and net loss Consolidated Statements of Operations for the Three-Month Period Ended March 31 (In thousands) | Description | 2025 | 2024 | | :--- | :--- | :--- | | Net revenue | $91,851 | $78,176 | | Impairment charge | $23,673 | $— | | Loss on lease abandonment | $25,191 | $— | | Operating income (loss) | ($52,770) | ($7,649) | | Net income (loss) attributable to common stockholders | ($47,966) | ($48,890) | | Net income (loss) per share, basic and diluted | ($0.53) | ($0.55) | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets%20%28Unaudited%29) As of March 31, 2025, total assets decreased to $435.8 million, primarily due to reductions in property and intangible assets, while total stockholders' equity declined Consolidated Balance Sheet Highlights (In thousands) | Description | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $73,610 | $95,914 | | Total current assets | $191,043 | $186,300 | | **Total assets** | **$435,822** | **$487,278** | | Total current liabilities | $65,308 | $61,626 | | **Total liabilities** | **$340,214** | **$341,258** | | **Total stockholders' equity** | **$95,608** | **$146,020** | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20%28Unaudited%29) In Q1 2025, the company experienced a net cash outflow from operating activities, contrasting with the prior year's inflow, primarily due to the net loss Consolidated Cash Flow Summary for the Three-Month Period Ended March 31 (In thousands) | Description | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | ($15,244) | $33,375 | | Net cash provided by (used in) investing activities | ($2,475) | $6,099 | | Net cash provided by (used in) financing activities | ($4,582) | ($16,797) | | **Net increase (decrease) in cash** | **($22,301)** | **$22,675** | | **Cash, cash equivalents and restricted cash at end of period** | **$74,399** | **$129,184** |

[Part I](index=4&type=section&id=PART%20I) [Business](index=4&type=section&id=ITEM%201.%20BUSINESS) Entravision, post-EGP divestiture, operates in Media and Advertising Technology & Services, focusing on U.S. Latino audiences and global programmatic advertising - The company realigned into Media and Advertising Technology & Services segments after divesting its Entravision Global Partners (EGP) business in Q2 2024[8](index=8&type=chunk)[9](index=9&type=chunk)[65](index=65&type=chunk) FY 2024 Revenue Breakdown by Segment | Segment | Revenue Contribution (%) | Source Chunk | | :--- | :--- | :--- | | Media | ~61% | [20] | | Advertising Technology & Services | ~39% | [20] | - The company operates one of the largest Spanish-language TV and radio station groups in the U.S., serving as the largest affiliate for TelevisaUnivision networks until December 31, 2026[18](index=18&type=chunk)[23](index=23&type=chunk)[24](index=24&type=chunk) - In 2024, the company significantly expanded local news programming by adding **107 new weekly newscasts** to boost political advertising revenue[27](index=27&type=chunk)[28](index=28&type=chunk) - The Advertising Technology & Services segment is powered by Smadex, an AI-driven programmatic ad platform, and Adwake, a performance-based media agency[19](index=19&type=chunk)[54](index=54&type=chunk)[58](index=58&type=chunk) - The EGP business divestiture was driven by Meta Platforms, Inc.'s decision to terminate its Authorized Sales Partners (ASP) program[64](index=64&type=chunk) - As of December 31, 2024, the company had approximately **990 employees worldwide**, with **684 in the U.S.** and **306 internationally**[83](index=83&type=chunk) [Risk Factors](index=16&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company faces significant risks including declining media audiences, intense ad-tech competition, substantial debt, and evolving regulatory and data privacy landscapes - Media operations face risks from declining audiences, intense competition, and heavy reliance on TelevisaUnivision affiliation agreements, which can complicate corporate transactions[94](index=94&type=chunk)[95](index=95&type=chunk)[98](index=98&type=chunk) - Ad Tech & Services risks include rapid technological changes, reduced ad inventory, intense competition, and evolving privacy regulations impacting data usage[100](index=100&type=chunk)[102](index=102&type=chunk)[105](index=105&type=chunk) - Financial risks include **$187.0 million** in debt as of December 31, 2024, with restrictive covenants, and reduced consolidated EBITDA post-EGP sale potentially challenging covenant compliance[113](index=113&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk) - Regulatory risks involve extensive FCC regulation and the potential for material adverse effects from non-renewal of broadcast licenses, alongside evolving global data protection laws like GDPR and CCPA[122](index=122&type=chunk)[124](index=124&type=chunk)[125](index=125&type=chunk) [Unresolved Staff Comments](index=30&type=section&id=ITEM%201B.%20UNRESOLVED%20STAFF%20COMMENTS) The company reports no unresolved staff comments - None[136](index=136&type=chunk) [Cybersecurity](index=30&type=section&id=ITEM%201C.%20CYBERSECURITY) Entravision maintains a cybersecurity risk management program, overseen by the Audit Committee and CISO, with no material threats identified to date - The company implemented security awareness training, expanded asset management, and enhanced identity and access management with multi-factor authentication[138](index=138&type=chunk)[139](index=139&type=chunk) - No cybersecurity threats have been identified that materially affected or are reasonably likely to materially affect the company's business or financial condition[143](index=143&type=chunk) - Cybersecurity governance is managed by the Audit Committee, receiving periodic reports, and a CISO leading the day-to-day program[144](index=144&type=chunk)[145](index=145&type=chunk) [Properties](index=32&type=section&id=ITEM%202.%20PROPERTIES) The company's corporate headquarters are leased in Burbank, CA, with a decision to vacate its former Santa Monica headquarters, while media properties are mixed owned and leased - Corporate headquarters are a leased **12,000 sq. ft.** space in Burbank, CA, with the lease expiring in February 2026[148](index=148&type=chunk) - The company decided to vacate its former Santa Monica headquarters in February 2025, ceasing lease payments on the property whose lease runs through January 2034[148](index=148&type=chunk)[542](index=542&type=chunk) [Legal Proceedings](index=32&type=section&id=ITEM%203.%20LEGAL%20PROCEEDINGS) The company is involved in litigation incidental to its business from time to time but is not currently a party to any lawsuit that management believes is likely to have a material adverse effect on the company - No current legal proceedings are expected to have a material adverse effect on the company or its business[151](index=151&type=chunk) [Mine Safety Disclosures](index=32&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) This item is not applicable to the company - Not applicable[152](index=152&type=chunk) [Part II](index=33&type=section&id=PART%20II) [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=33&type=section&id=ITEM%205.%20MARKET%20FOR%20REGISTRANT%27S%20COMMON%20EQUITY%2C%20RELATED%20STOCKHOLDER%20MATTERS%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) Entravision's Class A common stock trades on the NYSE as 'EVC', pays a dividend subject to Board discretion and debt covenants, and has a $20 million share repurchase program with no 2024 activity - The company's Class A common stock is listed on The New York Stock Exchange under the symbol **'EVC'**[154](index=154&type=chunk) - A **$20 million** share repurchase program was approved in March 2022, with no repurchases in 2024, and **$11.3 million** used to repurchase **1.8 million shares** to date[161](index=161&type=chunk)[162](index=162&type=chunk) - The company pays a common stock dividend, but future policy is at Board discretion and restricted by the 2023 Credit Agreement[160](index=160&type=chunk) [Reserved](index=35&type=section&id=ITEM%206.%20RESERVED) This item is reserved [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=ITEM%207.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) In 2024, consolidated net revenue grew significantly, but an operating loss was driven by substantial impairment charges, with the EGP divestiture impacting future cash flows and debt covenant compliance Consolidated Results of Operations (in thousands) | Metric | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | **Net Revenue** | **$364,948** | **$297,043** | **23%** | | Media | $222,061 | $196,268 | 13% | | Ad Tech & Services | $142,887 | $100,775 | 42% | | **Operating Income (Loss)** | **($51,980)** | **($26,496)** | **96%** | | Impairment Charge | $61,220 | $13,267 | 361% | | **Net Income (Loss) from Cont. Ops** | **($70,290)** | **($33,146)** | **112%** | - The company achieved record political advertising revenue in 2024, marking the **fifth consecutive election cycle** with increased political ad revenue[171](index=171&type=chunk) - A significant impairment charge of **$61.2 million** was recorded in 2024, including **$43.3 million** for goodwill and **$17.9 million** for FCC licenses in the media segment[182](index=182&type=chunk) - The EGP business disposition is expected to materially affect future cash flow from operations, potentially impacting liquidity and compliance with 2023 Credit Agreement financial covenants[210](index=210&type=chunk) - Management believes its cash position (**$95.9 million** in cash and equivalents, **$4.7 million** in marketable securities as of December 31, 2024) and ability to prepay debt will ensure compliance with financial covenants for the next twelve months[207](index=207&type=chunk)[213](index=213&type=chunk) Consolidated EBITDA (Non-GAAP) Reconciliation (in thousands) | | Year Ended Dec 31, 2024 | Year Ended Dec 31, 2023 | | :--- | :--- | :--- | | Net income (loss) attributable to common stockholders | $(148,908) | $(15,437) | | **Consolidated EBITDA** | **$49,531** | **$57,666** | [Quantitative and Qualitative Disclosures About Market Risk](index=54&type=section&id=ITEM%207A.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company faces market risk from variable-rate debt, with **$187.8 million** outstanding, and foreign currency exposure, primarily in Euros, but does not currently hedge these risks - As of December 31, 2024, the company had **$187.8 million** of variable rate bank debt outstanding under its 2023 Credit Facility[263](index=263&type=chunk) - A hypothetical **1%** increase in SOFR would increase annual interest expense and decrease cash flow from operations by approximately **$1.9 million**[264](index=264&type=chunk) - The company faces foreign currency risks from non-U.S. operations, primarily in Euros, but does not use hedging instruments as the effect is not material[265](index=265&type=chunk)[267](index=267&type=chunk) [Financial Statements and Supplementary Data](index=56&type=section&id=ITEM%208.%20FINANCIAL%20STATEMENTS%20AND%20SUPPLEMENTARY%20DATA) This section presents audited consolidated financial statements, including notes on the discontinued EGP business, significant goodwill and intangible asset impairments, long-term debt, and related-party transactions - Deloitte & Touche LLP provided an unqualified opinion on financial statements and internal controls, identifying goodwill impairment as a critical audit matter[308](index=308&type=chunk)[318](index=318&type=chunk) Consolidated Balance Sheet Summary (in thousands) | | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Current Assets | $186,300 | $385,855 | | Goodwill | $7,352 | $50,674 | | **Total Assets** | **$487,278** | **$865,946** | | Total Current Liabilities | $61,626 | $272,053 | | Long-Term Debt, net | $186,958 | $197,884 | | **Total Liabilities** | **$341,258** | **$599,660** | | **Total Stockholders' Equity** | **$146,020** | **$222,528** | - Note 4 details the EGP business sale in Q2 2024, resulting in a **$45.2 million** combined loss included in net loss from discontinued operations, with results presented as discontinued for all periods[419](index=419&type=chunk)[424](index=424&type=chunk)[427](index=427&type=chunk) - Note 6 details a **$43.3 million** goodwill impairment and **$17.9 million** FCC license impairment in 2024, plus an additional **$49.4 million** impairment related to discontinued operations[442](index=442&type=chunk)[445](index=445&type=chunk)[429](index=429&type=chunk) - Note 10 outlines 2023 Credit Facility covenants, including a total net leverage ratio not exceeding **3.25 to 1.00** and an interest coverage ratio minimum of **3.00 to 1.00**, with the company in compliance as of December 31, 2024[468](index=468&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=56&type=section&id=ITEM%209.%20CHANGES%20IN%20AND%20DISAGREEMENTS%20WITH%20ACCOUNTANTS%20ON%20ACCOUNTING%20AND%20FINANCIAL%20DISCLOSURE) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[269](index=269&type=chunk) [Controls and Procedures](index=56&type=section&id=ITEM%209A.%20CONTROLS%20AND%20PROCEDURES) Management, including the CEO and CFO, concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2024, with no material changes reported in Q4 2024 - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the report period end[270](index=270&type=chunk) - Management's assessment and Deloitte & Touche LLP's unqualified opinion confirmed effective internal control over financial reporting as of December 31, 2024[271](index=271&type=chunk)[273](index=273&type=chunk) - No material changes to internal control over financial reporting occurred during the fourth quarter of 2024[275](index=275&type=chunk) [Other Information](index=58&type=section&id=ITEM%209B.%20OTHER%20INFORMATION) During the fourth quarter of 2024, no directors or officers adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - No insider trading arrangements under Rule 10b5-1 were adopted or terminated by directors or officers during Q4 2024[276](index=276&type=chunk) [Disclosure Regarding Foreign Jurisdictions That Prevent Inspections](index=58&type=section&id=ITEM%209C.%20DISCLOSURE%20REGARDING%20FOREIGN%20JURISDICTIONS%20THAT%20PREVENT%20INSPECTIONS) This item is not applicable to the company - Not applicable[277](index=277&type=chunk) [Part III](index=59&type=section&id=PART%20III) [Directors, Executive Officers, Corporate Governance, and Other Matters (Items 10-14)](index=59&type=section&id=ITEM%2010.%20DIRECTORS%2C%20EXECUTIVE%20OFFICERS%20AND%20CORPORATE%20GOVERNANCE) Information for Items 10-14, covering directors, executive officers, compensation, security ownership, and related-party transactions, is incorporated by reference from the 2025 Proxy Statement - Information for Items 10-14 is incorporated by reference from the company's Proxy Statement for the 2025 Annual Meeting of Stockholders[280](index=280&type=chunk)[281](index=281&type=chunk)[282](index=282&type=chunk) [Part IV](index=60&type=section&id=PART%20IV) [Exhibits and Financial Statement Schedules](index=60&type=section&id=ITEM%2015.%20EXHIBITS%20AND%20FINANCIAL%20STATEMENT%20SCHEDULES) This section lists all documents filed as part of the Form 10-K, including consolidated financial statements, schedules, and a comprehensive index of exhibits - This item lists the financial statements, financial statement schedules, and all exhibits filed with the annual report[287](index=287&type=chunk)[288](index=288&type=chunk) [Form 10-K Summary](index=66&type=section&id=ITEM%2016.%20FORM%2010-K%20SUMMARY) The company reports no Form 10-K summary - None[295](index=295&type=chunk)

[Financial Performance Overview](index=1&type=section&id=ENTRAVISION%20COMMUNICATIONS%20CORPORATION%20REPORTS%20FOURTH%20QUARTER%20AND%20FULL%20YEAR%202024%20RESULTS) Entravision reported strong Q4 and FY2024 revenue growth, driven by Media and Ad Tech segments, despite a significant impairment charge - The CEO highlighted growth from record political advertising in the Media segment and strong advertising revenue in the Advertising Technology & Services segment, with a 2025 focus on news content, digital marketing, and Ad Tech growth[3](index=3&type=chunk) - **Q4 and Full Year 2024 Performance Highlights** | Metric | Q4 2024 Change (YoY) | Full Year 2024 Change (YoY) | | :--- | :--- | :--- | | **Consolidated Net Revenue** | +37% | +23% | | **Media Segment Net Revenue** | +30% | +13% | | **Ad Tech & Services Net Revenue** | +49% | +42% | | **Media Segment Operating Profit** | +62% | -4% | | **Ad Tech & Services Operating Profit** | +39% | >1,000% | | **Corporate Expenses** | -48% | -25% | - The company undertook several strategic initiatives in 2024, including enhancing local news programming, realigning its sales management structure, and increasing the size of its media sales team[4](index=4&type=chunk) - The company maintained a strong balance sheet, making **$20 million** in prepayments on its credit facility, with total leverage at **2.8 times** and **1.8 times net of cash** and marketable securities as of December 31, 2024[4](index=4&type=chunk) - A quarterly cash dividend of **$0.05 per share** was approved by the board of directors, payable on March 31, 2025[4](index=4&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) This section presents Entravision's unaudited Q4 and full-year 2024 financial statements, including segment results, operations, balance sheets, and cash flows [Segment Results](index=5&type=section&id=Segment%20Results%20%28Unaudited%29) Both segments demonstrated strong revenue growth in Q4 and the full year 2024, with the Media segment's full-year operating profit declining while the Ad Tech segment's operating profit grew significantly - **Net Revenue by Segment (in thousands)** | Segment | Q4 2024 | Q4 2023 | % Change | FY 2024 | FY 2023 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Media | $67,260 | $51,654 | 30% | $222,061 | $196,268 | 13% | | Ad Tech & Services | $39,702 | $26,602 | 49% | $142,887 | $100,775 | 42% | | **Consolidated** | **$106,962** | **$78,256** | **37%** | **$364,948** | **$297,043** | **23%** | - **Segment Operating Profit (in thousands)** | Segment | Q4 2024 | Q4 2023 | % Change | FY 2024 | FY 2023 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Media | $18,545 | $11,468 | 62% | $38,697 | $40,416 | (4)% | | Ad Tech & Services | $2,185 | $1,571 | 39% | $8,104 | $29 | >1000% | | **Consolidated** | **$20,730** | **$13,039** | **59%** | **$46,801** | **$40,445** | **16%** | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations%20%28Unaudited%29) Despite a 23% increase in full-year net revenue, the company's operating loss widened to $52.0 million in 2024, primarily due to a significant impairment charge, resulting in a net loss of $148.9 million - **Full Year Consolidated Operations (in thousands)** | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Net Revenue | $364,948 | $297,043 | | Impairment Charge | $61,220 | $13,267 | | Operating Income (Loss) | $(51,980) | $(26,496) | | Net Income (Loss) Attributable to Common Stockholders | $(148,908) | $(15,437) | - **Earnings (Loss) Per Share** | Period | 2024 | 2023 | | :--- | :--- | :--- | | Q4 Diluted EPS | $(0.62) | $(0.21) | | Full Year Diluted EPS | $(1.66) | $(0.18) | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets%20%28Unaudited%29) Total assets significantly decreased to $487.3 million as of December 31, 2024, primarily due to reclassification of discontinued operations assets, leading to a decline in total stockholders' equity - **Key Asset Balances (in thousands)** | Asset | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $95,914 | $67,398 | | Goodwill | $7,352 | $50,674 | | Intangible assets, net | $181,693 | $202,274 | | **Total Assets** | **$487,278** | **$865,946** | - **Key Liability and Equity Balances (in thousands)** | Liability / Equity | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Long-term debt, net | $186,958 | $197,884 | | **Total Liabilities** | **$341,258** | **$599,660** | | **Total Stockholders' Equity** | **$146,020** | **$222,528** | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20%28Unaudited%29) Entravision generated $74.7 million in net cash from operating activities in FY2024, with significant cash usage in investing and financing activities, including debt and dividend payments - **Full Year Cash Flow Summary (in thousands)** | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $74,705 | $75,196 | | Net cash provided by (used in) investing activities | $(26,822) | $(15,955) | | Net cash used in financing activities | $(57,690) | $(64,171) | | **Net (decrease) in cash** | **$(9,809)** | **$(4,935)** | - Major uses of cash in financing activities for FY 2024 included **debt payments ($20.3M)**, **dividend payments ($18.0M)**, and **payments for contingent consideration ($15.7M)**[16](index=16&type=chunk)