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][24] - The net loss attributable to common stockholders was $48 million, primarily due to non-cash charges [24] 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 local advertising spend [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, while the average spend per active advertiser increased slightly [5] - The ATS segment's growth was supported by investments in technology and increased sales capacity [9][20] Company Strategy and Development Direction - The company is focusing on increasing local sales capacity and expanding digital sales capabilities in the media segment [7][11] - In the ATS segment, the strategy includes investing in engineering to enhance technology and AI capabilities [9][20] - The overall goal is to optimize organizational structure and reduce expenses while driving revenue growth [12][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the need for improvement in operating performance, particularly in the media segment [4][21] - There is optimism regarding the ATS segment's growth potential and the effectiveness of ongoing investments [20] Other Important Information - Corporate expenses were reduced by 36% to $7.8 million in Q1 2025 compared to Q1 2024 [21][22] - The company incurred non-cash charges totaling $48.9 million due to asset write-downs and office relocation [23][24] - The company maintains a strong balance sheet with $78 million in cash and marketable securities [24] 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 [29][30] - No changes to forecasts or strategic plans have been made in response to trade policy changes [31]

[PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section details the company's unaudited financial statements, management's analysis, market risk, and internal controls [Financial Statements](index=6&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents the unaudited condensed consolidated financial statements, highlighting the EGP business divestiture, segment realignment, an impairment charge, and a lease abandonment loss Condensed Consolidated Balance Sheet Highlights (Unaudited) | Account | March 31, 2025 ($ in thousands) | December 31, 2024 ($ in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | 73,610 | 95,914 | | Assets held for sale | 4,650 | - | | Total assets | 435,822 | 487,278 | | Total current liabilities | 65,308 | 61,626 | | Long-term debt, less current maturities | 184,514 | 186,958 | | Total liabilities | 340,214 | 341,258 | | Total stockholders' equity | 95,608 | 146,020 | Condensed Consolidated Statements of Operations Highlights (Unaudited) | Account | Three-Month Period Ended March 31, 2025 ($ in thousands) | Three-Month Period Ended March 31, 2024 ($ in thousands) | | :--- | :--- | :--- | | 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) from continuing operations | (47,775) | (7,510) | | Net income (loss) attributable to common stockholders | (47,966) | (48,890) | | Net income (loss) per share, basic and diluted | (0.53) | (0.55) | - The company's **EGP business**, sold in Q2 2024 following Meta's decision to end its Authorized Sales Partners (ASP) program, is now classified as **discontinued operations**, representing a strategic shift[28](index=28&type=chunk)[29](index=29&type=chunk)[33](index=33&type=chunk) - In March 2025, the company entered into a letter of intent to sell two Mexico television stations for a combined price of **$4.7 million**, leading to a **$23.7 million impairment charge** in Q1 2025 due to a significantly higher carrying value[34](index=34&type=chunk)[64](index=64&type=chunk) - The company vacated its Santa Monica headquarters in February 2025, resulting in a **$25.2 million loss on lease abandonment**, comprising **$16.1 million** for the right-of-use asset and **$9.1 million** for leasehold improvements[66](index=66&type=chunk)[121](index=121&type=chunk) - Effective July 1, 2024, the company realigned its operations from three segments (digital, television, audio) into two new reportable segments: **Media** and **Advertising Technology & Services**[10](index=10&type=chunk)[125](index=125&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses Q1 2025 financial results, highlighting revenue growth, significant operating losses from one-time charges, and the company's liquidity position Q1 2025 vs Q1 2024 Performance Summary | Metric | Q1 2025 ($ in thousands) | Q1 2024 ($ in thousands) | % Change | | :--- | :--- | :--- | :--- | | Net Revenue | 91,851 | 78,176 | 17% | | Operating income (loss) | (52,770) | (7,649) | 590% | | Net income (loss) from continuing operations | (47,775) | (7,510) | 536% | | Net cash provided by (used in) operating activities | (15,244) | 33,375 | N/A | Revenue by Segment (Q1 2025 vs Q1 2024) | Segment | Q1 2025 Revenue ($ in thousands) | Q1 2024 Revenue ($ in thousands) | % Change | | :--- | :--- | :--- | :--- | | Media | 40,977 | 45,766 | (10)% | | Advertising Technology & Services | 50,874 | 32,410 | 57% | | **Consolidated** | **91,851** | **78,176** | **17%** | - The operating loss was primarily driven by two significant one-time charges: a **$23.7 million impairment** on assets held for sale and a **$25.2 million loss on lease abandonment**[172](index=172&type=chunk)[173](index=173&type=chunk) - Management believes the company has sufficient liquidity to operate for the next twelve months, citing **$78.1 million** in combined cash and marketable securities and the ability to prepay debt to maintain compliance with financial covenants under the 2023 Credit Agreement[197](index=197&type=chunk)[203](index=203&type=chunk)[204](index=204&type=chunk) - Net cash used in operating activities was **$15.2 million** in Q1 2025, a significant reversal from the **$33.4 million** provided in Q1 2024, mainly due to unfavorable changes in working capital[209](index=209&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=51&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company's primary market risks are interest rate fluctuations on variable-rate debt and foreign currency exposure, neither of which is currently hedged - The company is exposed to interest rate risk with **$187.8 million** of variable-rate debt outstanding, where a hypothetical **1% (100 basis points)** increase in the SOFR would increase annual interest expense by **$1.9 million**[214](index=214&type=chunk)[215](index=215&type=chunk) - Foreign currency risk exists from operations outside the U.S., mainly in Europe (Euro), but management does **not consider this risk material** to consolidated results and has **not entered into any hedging contracts**[216](index=216&type=chunk)[218](index=218&type=chunk) [Controls and Procedures](index=51&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that the company's disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2025[219](index=219&type=chunk) - There were **no changes** in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, such controls[222](index=222&type=chunk) [PART II. OTHER INFORMATION](index=53&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity sales, defaults, mine safety, other information, and exhibits [Legal Proceedings](index=53&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is subject to various legal claims, but management does not expect a material adverse financial impact - Management does **not expect any outstanding legal proceedings to have a material adverse effect** on the company's financials[224](index=224&type=chunk) [Risk Factors](index=53&type=section&id=ITEM%201A.%20RISK%20FACTORS) No new risk factors were reported for the period - **No new risk factors** were reported for the quarter[225](index=225&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=53&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) This section details the company's share repurchase program, noting no repurchases in Q1 2025 and total repurchases to date - The company **did not repurchase any shares** of its Class A common stock during the three-month period ended March 31, 2025[227](index=227&type=chunk) - As of March 31, 2025, the company has repurchased a total of **1.8 million shares** for **$11.3 million** under its **$20 million** share repurchase program, approved in March 2022[226](index=226&type=chunk)[227](index=227&type=chunk) [Defaults Upon Senior Securities](index=53&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) The company reported no defaults on its senior securities - **None reported**[228](index=228&type=chunk) [Mine Safety Disclosures](index=53&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) This item is not applicable to the company - **Not applicable**[229](index=229&type=chunk) [Other Information](index=53&type=section&id=ITEM%205.%20OTHER%20INFORMATION) No new or terminated Rule 10b5-1 trading arrangements were reported by directors or officers - **No new or terminated insider trading arrangements** (Rule 10b5-1) were reported by directors or officers in Q1 2025[230](index=230&type=chunk) [Exhibits](index=54&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed with the 10-Q report, including executive agreements and required certifications - Filed exhibits include **letter agreements** with Michael Christenson, Jeffery Liberman, and Mark Boelke, as well as **CEO and CFO certifications** pursuant to Sarbanes-Oxley Act Sections 302 and 906[233](index=233&type=chunk)

[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)

Financial Data and Key Metrics Changes - For Q3 2024, consolidated revenue was $97.2 million, a 25% increase compared to Q3 2023, driven by political advertising revenue and growth in Smadex [19] - Net loss attributable to common stockholders was $12 million, compared to net income of $2.7 million in the prior year, primarily due to an income tax loss [20] - Corporate expenses decreased by 48% to $6.9 million compared to Q3 2023, attributed to a reduction in personnel and related compensation [25][26] Business Line Data and Key Metrics Changes - Media segment revenue was $59.8 million, up 23% year-over-year, driven by political advertising revenue [21] - Operating profit for the Media segment was $11.7 million, a 19% increase, with an operating margin of 20% [21] - Advertising Technology and Services segment revenue was $37.4 million, a 30% increase, with operating margins improving to 5% from 3% year-over-year [23][24] Market Data and Key Metrics Changes - Political revenue for 2024 is expected to exceed the previous high in 2022, although it will not meet the most ambitious expectations due to lower spending in key races [11] - The allocation to Spanish language media in critical races was higher than the percentage of registered Latino voters, indicating a positive trend for future political advertising [12] Company Strategy and Development Direction - The company is focused on serving the Latino audience and enhancing its media business through significant investments in news production and political sales [7][8] - The reorganization of business units into two segments aims to drive revenue and reduce expenses, aligning with operational structures [16][17] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the financial outcomes and the effectiveness of their audience engagement strategies during the election cycle [13] - Looking ahead, revenue from the Media segment is currently pacing at a 28% increase for Q4 2024, while the Advertising Technology and Services segment is pacing at a 30% increase [22][24] Other Important Information - Cash capital expenditures for Q3 were $1.6 million, representing 14% of net cash provided by operating activities, lower than the previous year [28] - Free cash flow for Q3 2024 was $9.3 million, down from $17 million in Q3 2023, primarily due to the sale of the EGP business [29] - The company paid $4.5 million in dividends during Q3, representing 41% of net cash provided by operating activities [30] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating the end of the conference call [32]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Q1 2024 saw a **$51.7 million net loss** due to a **$49.4 million impairment charge** from Meta ASP program termination, despite **$277.4 million revenue** Condensed Consolidated Balance Sheet Highlights (Unaudited) | Account | March 31, 2024 ($ in thousands) | December 31, 2023 ($ in thousands) | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 128,410 | 105,739 | ▲ | | Goodwill | 55,272 | 90,672 | ▼ | | Total assets | 804,990 | 865,946 | ▼ | | Total liabilities | 591,615 | 599,660 | ▼ | | Total stockholders' equity | 173,535 | 222,528 | ▼ | Condensed Consolidated Statements of Operations Highlights (Unaudited) | Metric | Q1 2024 ($ in thousands) | Q1 2023 ($ in thousands) | Change | | :--- | :--- | :--- | :--- | | Net Revenue | 277,445 | 239,006 | ▲ 16% | | Operating income (loss) | (55,899) | 6,668 | ▼ | | Impairment charge | 49,438 | - | N/A | | Net income (loss) | (51,669) | 1,699 | ▼ | | Net income (loss) attributable to common stockholders | (48,890) | 2,041 | ▼ | | Net income (loss) per share, basic and diluted | (0.55) | 0.02 | ▼ | Condensed Consolidated Statements of Cash Flows Highlights (Unaudited) | Cash Flow Activity | Q1 2024 ($ in thousands) | Q1 2023 ($ in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | 33,375 | 36,695 | | Net cash provided by (used in) investing activities | 6,099 | (563) | | Net cash provided by (used in) financing activities | (16,797) | (5,365) | - On **March 4, 2024**, Meta announced its intention to wind down its Authorized Sales Partners (ASP) program by **July 1, 2024**, triggering an interim impairment test as Meta represented approximately **53%** of the company's consolidated revenue in Q1 2024[49](index=49&type=chunk) - As a result of the Meta ASP program termination, the company recorded a goodwill impairment charge of **$35.4 million** and an intangible assets impairment charge of **$14.0 million** in the digital segment during Q1 2024[52](index=52&type=chunk)[55](index=55&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management reported **16% revenue growth** to **$277.4 million**, but the **Meta ASP program termination** led to a **$49.4 million impairment charge** and a **$55.9 million operating loss** - The company received communication from Meta on **March 4, 2024**, about its intent to wind down the ASP program globally by **July 1, 2024**, which management expects to have a material adverse effect on future revenue and cash flow, prompting a review of its digital strategy and cost structure[153](index=153&type=chunk)[159](index=159&type=chunk) Segment Revenue - Q1 2024 vs Q1 2023 | Segment | Q1 2024 Net Revenue ($ in thousands) | Q1 2023 Net Revenue ($ in thousands) | % Change | | :--- | :--- | :--- | :--- | | Digital | 237,491 | 196,482 | 21% | | Television | 28,549 | 30,312 | (6)% | | Audio | 11,405 | 12,212 | (7)% | | **Total** | **277,445** | **239,006** | **16%** | Segment Operating Profit (Loss) - Q1 2024 vs Q1 2023 | Segment | Q1 2024 Operating Profit ($ in thousands) | Q1 2023 Operating Profit ($ in thousands) | % Change | | :--- | :--- | :--- | :--- | | Digital | 2,339 | 3,556 | (34)% | | Television | 2,655 | 7,555 | (65)% | | Audio | (178) | 1,038 | * | | **Total** | **4,816** | **12,149** | **(60)%** | - The company prepaid **$10.0 million** of its 2023 Credit Facility in March 2024, applying **$8.75 million** to the Term A Facility and **$1.25 million** to the Revolving Credit Facility[159](index=159&type=chunk)[207](index=207&type=chunk) - Management believes its current cash position of **$128.4 million**, plus **$4.3 million** in marketable securities, is sufficient to meet operating expenses and debt service for at least the next twelve months, despite the expected negative impact from the Meta ASP program termination[203](index=203&type=chunk)[204](index=204&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company faces market risk from **$197.8 million variable-rate debt** and growing foreign currency exposure, with a **100 basis point SOFR increase** raising annual interest expense by **$2.0 million** - As of March 31, 2024, the company had **$197.8 million** of variable-rate bank debt, where a hypothetical **1% (100 basis points)** increase in the SOFR would increase annual interest expense by approximately **$2.0 million**[217](index=217&type=chunk)[218](index=218&type=chunk) - The company has **growing foreign currency risks** from its digital operations in Latin America, Asia, and other regions, with revenue and expenses denominated in various foreign currencies, but has not used hedging contracts to date[219](index=219&type=chunk)[223](index=223&type=chunk) [Controls and Procedures](index=35&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management, including the CEO and CFO, concluded that disclosure controls and procedures were **effective** as of March 31, 2024, with **no material changes** to internal control over financial reporting - Management, including the CEO and CFO, concluded that as of the end of the quarter, the company's disclosure controls and procedures were **effective**[224](index=224&type=chunk) - **No changes** in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[227](index=227&type=chunk) [PART II. OTHER INFORMATION](index=37&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=37&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) Management believes any liability from ongoing legal proceedings will **not materially adversely affect** the company's financial position, results, or cash flows - In the opinion of management, any liability from outstanding claims and legal proceedings will **not materially adversely affect** the company's financial position, results of operations, or cash flows[229](index=229&type=chunk) [Risk Factors](index=37&type=section&id=ITEM%201A.%20RISK%20FACTORS) New risk factors include **credit risk** from Meta ASP termination and the potential need for **additional financing**, with no guarantee of availability - The company faces **credit risk** related to the potential uncollectibility of accounts receivable from advertisers after the termination of its ASP relationship with Meta, which is set to occur by **July 1, 2024**[230](index=230&type=chunk) - The company may need to seek **additional equity or debt financing** if its liquidity becomes insufficient to fund business activities, particularly as a result of the Meta ASP program termination, with **no guarantee** that such capital will be available on favorable terms, or at all[231](index=231&type=chunk) [Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=37&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES,%20USE%20OF%20PROCEEDS,%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) The company made **no Class A common stock repurchases** in Q1 2024, having cumulatively repurchased **1.8 million shares** for **$11.3 million** under its program - **No shares** of Class A common stock were repurchased during the three-month periods ended March 31, 2024, and 2023[233](index=233&type=chunk) - As of March 31, 2024, the company has repurchased a total of **1.8 million shares** for an aggregate price of **$11.3 million** under its current share repurchase program[233](index=233&type=chunk) [Defaults Upon Senior Securities](index=37&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) No defaults upon senior securities were reported [Mine Safety Disclosures](index=37&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) Mine safety disclosures are not applicable to the company's operations [Other Information](index=37&type=section&id=ITEM%205.%20OTHER%20INFORMATION) No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter - **No directors or officers** informed the company of the adoption or termination of any "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" during the quarter[236](index=236&type=chunk) [Exhibits](index=38&type=section&id=ITEM%206.%20EXHIBITS) This section lists exhibits filed, including CEO and CFO certifications and Inline XBRL data files

[First Quarter 2024 Results Overview](index=1&type=section&id=First%20Quarter%202024%20Results%20Overview) This section summarizes Entravision's Q1 2024 performance, covering CEO commentary, unaudited financial highlights, and the quarterly cash dividend [CEO Commentary and Strategic Outlook](index=1&type=section&id=CEO%20Commentary%20and%20Strategic%20Outlook) CEO Michael Christenson discussed Meta's ASP program wind-down, Entravision's strategic review, and 2024 priorities including political revenue, content, and Smadex development - Meta intends to wind down its authorized sales partner (ASP) program globally and end its relationship with all ASPs, including Entravision, by July 1, 2024[3](index=3&type=chunk) - Entravision has initiated a thorough review of its current digital strategy, operations, and cost structure in response to Meta's decision[3](index=3&type=chunk) - The company's 2024 priorities include maximizing political revenue, providing highly-rated news and content, and building its programmatic ad purchasing platform, Smadex[4](index=4&type=chunk) [Unaudited Financial Highlights](index=1&type=section&id=Unaudited%20Financial%20Highlights%20%28In%20thousands%2C%20except%20share%20and%20per%20share%20data%29) Entravision reported a **16% increase in net revenue** to **$277.4 million**, but a **net loss of $51.7 million** and a **65% decrease in Consolidated EBITDA** to **$4.5 million** Q1 2024 Unaudited Financial Highlights (YoY Change) | Metric | Q1 2024 (in thousands) | Q1 2023 (in thousands) | % Change | | :----------------------------------- | :--------------------- | :--------------------- | :------- | | Net revenue | $277,445 | $239,006 | 16 % | | Cost of revenue - digital | $203,229 | $167,756 | 21 % | | Operating expenses | $62,267 | $52,630 | 18 % | | Corporate expenses | $12,248 | $10,502 | 17 % | | Consolidated EBITDA | $4,530 | $13,022 | (65 )% | | Free cash flow | $(2,831 ) | $3,908 | * | | Net income (loss) | $(51,669 ) | $1,699 | * | | Net income (loss) attributable to common stockholders | $(48,890 ) | $2,041 | * | | Net income (loss) per share, basic and diluted | $(0.55 ) | $0.02 | * | - Net revenue increased primarily due to increases in advertising revenue from digital business units and political advertising revenue in television and audio segments, partially offset by decreases in national advertising, spectrum usage rights, and retransmission consent revenue in television, and decreases in local and national advertising revenue in audio[8](index=8&type=chunk) - Cost of revenue, operating expenses, and corporate expenses all increased, driven by higher digital advertising revenue, salary expenses, and non-cash stock-based compensation[9](index=9&type=chunk)[10](index=10&type=chunk) [Quarterly Cash Dividend Declaration](index=3&type=section&id=Quarterly%20Cash%20Dividend) The Board of Directors approved a quarterly cash dividend of **$0.05 per share** for Class A and Class U common stock, totaling **$4.5 million** Q1 2024 Quarterly Cash Dividend | Metric | Value | | :-------------------------------- | :---------- | | Dividend per share | $0.05 | | Aggregate amount | $4.5 million | | Payable date | June 28, 2024 | | Record date | June 14, 2024 | [Detailed Financial Performance](index=3&type=section&id=Detailed%20Financial%20Performance) This section provides a detailed analysis of Entravision's financial performance, including consolidated statements of operations, segment results, balance sheets, and cash flows [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) The consolidated statements show a shift from **Q1 2023 operating income of $6.7 million** to a **Q1 2024 operating loss of $55.9 million**, primarily due to a **$49.4 million impairment charge** Consolidated Statements of Operations (Q1 2024 vs. Q1 2023) | Metric | Q1 2024 (in thousands) | Q1 2023 (in thousands) | | :----------------------------------------- | :--------------------- | :--------------------- | | Net revenue | $277,445 | $239,006 | | Total Expenses | $333,344 | $232,338 | | Operating income (loss) | $(55,899 ) | $6,668 | | Income (loss) before income taxes | $(59,471 ) | $1,930 | | Net income (loss) | $(51,669 ) | $1,699 | | Net income (loss) attributable to common stockholders | $(48,890 ) | $2,041 | | Basic and diluted EPS | $(0.55 ) | $0.02 | - An impairment charge of **$49.4 million** was recorded in Q1 2024, significantly contributing to the operating loss, compared to no impairment charge in Q1 2023[20](index=20&type=chunk) [Segment Results](index=3&type=section&id=Unaudited%20Segment%20Results%20%28In%20thousands%29) The Digital segment's revenue grew **21% to $237.5 million**, while Television and Audio segments declined by **6%** and **7%** respectively, with operating expenses increasing across all segments Q1 2024 Segment Net Revenue (YoY Change) | Segment | Q1 2024 (in thousands) | Q1 2023 (in thousands) | % Change | | :-------- | :--------------------- | :--------------------- | :------- | | Digital | $237,491 | $196,482 | 21 % | | Television | $28,549 | $30,312 | (6 )% | | Audio | $11,405 | $12,212 | (7 )% | | Total | $277,445 | $239,006 | 16 % | Q1 2024 Segment Operating Expenses (YoY Change) | Segment | Q1 2024 (in thousands) | Q1 2023 (in thousands) | % Change | | :-------- | :--------------------- | :--------------------- | :------- | | Digital | $28,077 | $21,539 | 30 % | | Television | $22,968 | $20,099 | 14 % | | Audio | $11,222 | $10,992 | 2 % | | Total | $62,267 | $52,630 | 18 % | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to **$805.0 million** as of March 31, 2024, with **cash and marketable securities at $132.7 million** and total debt at **$200.1 million** Consolidated Balance Sheet Highlights (March 31, 2024 vs. December 31, 2023) | Metric | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :----------------------------------- | :---------------------------- | :---------------------------- | | Total assets | $804,990 | $865,946 | | Cash and cash equivalents | $128,410 | $105,739 | | Marketable securities | $4,335 | $13,172 | | Goodwill | $55,272 | $90,672 | | Intangible assets subject to amortization, net | $34,660 | $51,784 | | Total liabilities | $591,615 | $599,660 | | Total stockholders' equity | $173,535 | $222,528 | - Cash and marketable securities totaled **$132.7 million** as of March 31, 2024[13](index=13&type=chunk) - Total debt, as defined in the credit agreement, was **$200.1 million**, with a total leverage ratio of **1.4 times** net of total cash and marketable securities[13](index=13&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities decreased to **$33.4 million**, while investing activities generated **$6.1 million**, and financing activities resulted in a **$16.8 million** outflow Consolidated Statements of Cash Flows (Q1 2024 vs. Q1 2023) | Cash Flow Activity | Q1 2024 (in thousands) | Q1 2023 (in thousands) | | :-------------------------------- | :--------------------- | :--------------------- | | Net cash provided by operating activities | $33,375 | $36,695 | | Net cash provided by (used in) investing activities | $6,099 | $(563 ) | | Net cash provided by (used in) financing activities | $(16,797 ) | $(5,365 ) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $22,675 | $30,768 | | Ending cash, cash equivalents and restricted cash | $129,184 | $142,212 | - Purchases of property and equipment decreased significantly to **$2.7 million** in Q1 2024 from **$6.8 million** in Q1 2023[24](index=24&type=chunk) - Payments on debt were **$10.3 million** in Q1 2024, a substantial decrease from **$211.7 million** in Q1 2023, which also included significant proceeds from borrowings[24](index=24&type=chunk) [Non-GAAP Financial Measures](index=9&type=section&id=Non-GAAP%20Financial%20Measures) This section provides reconciliations for non-GAAP financial measures, specifically Consolidated EBITDA and Free Cash Flow, to their most directly comparable GAAP measures [Reconciliation of Consolidated EBITDA](index=9&type=section&id=Reconciliation%20of%20Consolidated%20EBITDA%20to%20Cash%20Flows%20From%20Operating%20Activities) Consolidated EBITDA for Q1 2024 was **$4.5 million**, a **65% decrease** from **$13.0 million** in Q1 2023, reflecting a decline in profitability Reconciliation of Consolidated EBITDA to Cash Flows From Operating Activities (Q1 2024 vs. Q1 2023) | Metric | Q1 2024 (in thousands) | Q1 2023 (in thousands) | | :----------------------------------------- | :--------------------- | :--------------------- | | Consolidated EBITDA | $4,530 | $13,022 | | Cash flows from operating activities | $33,375 | $36,695 | - Consolidated EBITDA decreased by **65%** from **$13.0 million** in Q1 2023 to **$4.5 million** in Q1 2024[4](index=4&type=chunk)[25](index=25&type=chunk) [Reconciliation of Free Cash Flow](index=11&type=section&id=Reconciliation%20of%20Free%20Cash%20Flow%20to%20Cash%20Flows%20From%20Operating%20Activities) Free cash flow for Q1 2024 was negative **$2.8 million**, a significant decrease from positive **$3.9 million** in Q1 2023 Reconciliation of Free Cash Flow to Cash Flows From Operating Activities (Q1 2024 vs. Q1 2023) | Metric | Q1 2024 (in thousands) | Q1 2023 (in thousands) | | :----------------------------------------- | :--------------------- | :--------------------- | | Consolidated EBITDA | $4,530 | $13,022 | | Net interest expense | $(3,337 ) | $(3,035 ) | | Dividend income | $10 | $18 | | Cash paid for income taxes | $(1,291 ) | $(72 ) | | Capital expenditures | $(2,743 ) | $(6,750 ) | | Free cash flow | $(2,831 ) | $3,908 | | Cash Flows From Operating Activities | $33,375 | $36,695 | - Free cash flow shifted from positive **$3.9 million** in Q1 2023 to negative **$2.8 million** in Q1 2024[4](index=4&type=chunk)[27](index=27&type=chunk) [Company Information](index=5&type=section&id=Company%20Information) This section provides essential company information, including an overview of Entravision, forward-looking statements, and details regarding the Q1 2024 conference call [About Entravision Communications Corporation](index=5&type=section&id=About%20Entravision%20Communications%20Corporation) Entravision is a global advertising solutions, media, and technology company, with its digital segment as the largest revenue driver and a diversified U.S. media portfolio - Entravision is a global advertising solutions, media, and technology company, with its digital segment being the largest by revenue[17](index=17&type=chunk) - The company offers end-to-end advertising services through platforms like Smadex and maintains a diversified portfolio of U.S. television and radio stations targeting Hispanic audiences[17](index=17&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This section outlines forward-looking statements, subject to inherent risks and uncertainties, with the company disclaiming any obligation to update them - The press release contains forward-looking statements subject to risks, uncertainties, and other factors that may cause actual results to differ materially from expectations[18](index=18&type=chunk) - The company disclaims any duty to update any forward-looking statements[18](index=18&type=chunk) [Conference Call Details](index=5&type=section&id=Notice%20of%20Conference%20Call) A conference call to discuss Q1 2024 results was held on May 2, 2024, at 5:00 p.m. Eastern Time, accessible via dial-in or webcast - A conference call to discuss Q1 2024 results was held on Thursday, May 2, 2024, at 5:00 p.m. Eastern Time[16](index=16&type=chunk) - Access to the call was available via dial-in (U.S. and Int'l) and a live webcast on www.entravision.com[16](index=16&type=chunk)

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SANTA MONICA, Calif.--(BUSINESS WIRE)--In a commitment to empower Latino communities across the US, Entravision has partnered with The National Association of Latino Elected and Appointed Officials (NALEO) Educational Fund. Through this partnership, Entravision will amplify the organization’s registration tool on its El Botón music app and elboton.com. El Botón serves as a multifaceted digital hub, offering Latinos access to music, podcasts, entertainment news in Spanish, and now crucial civic resources. ...