Entravision(EVC) - 2024 Q4 - Annual Results

Financial Performance Overview 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] - 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] - 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] - A quarterly cash dividend of $0.05 per share was approved by the board of directors, payable on March 31, 2025[4] Financial Statements This section presents Entravision's unaudited Q4 and full-year 2024 financial statements, including segment results, operations, balance sheets, and cash flows Segment Results 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 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 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 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]