Entravision(EVC) - 2025 Q1 - Quarterly Results

Q1 2025 Financial and Operational Highlights Entravision reported a 17% increase in consolidated net revenue for Q1 2025, despite a significant operating loss due to non-cash charges Overall Performance 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] - 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] - The Board of Directors approved a quarterly cash dividend of $0.05 per share, payable on June 30, 2025[4] Segment Performance 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] - The Advertising Technology & Services segment's strong performance was driven by increases in advertising revenue, including higher advertising spend per client[4] Strategic Initiatives 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] - Grow Local Sales and Digital Advertising: Invested in new sales leadership and personnel to drive local and digital ad sales[8] - Grow Advertising Technology & Services: Focus on strengthening its proprietary technology platform and expanding its sales team, especially in the U.S[8] - Drive Cost Efficiencies: Control supporting services and corporate expenses while investing in revenue-driving areas[8] - Maintain a Strong Balance Sheet: Prioritize low leverage and financial stability[8] Financial Statements This section provides detailed financial statements, including segment results, consolidated operations, balance sheets, and cash flows Segment Results 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 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 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 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 |