Entravision(US:EVC)2025-11-04 21:11Financial Performance - For the three-month period ended September 30, 2025, net revenue increased to $120.63 million, up from $97.16 million in the same period of 2024, representing a growth of 24%[17] - The company reported a net loss attributable to common stockholders of $9.66 million for the three-month period ended September 30, 2025, compared to a net loss of $11.98 million in the same period of 2024, showing an improvement of 19%[18] - Basic and diluted earnings per share from continuing operations for the three-month period ended September 30, 2025, was $(0.11), compared to $(0.12) in the same period of 2024[17] - Net income attributable to common stockholders for the nine-month period ended September 30, 2025, was $(60,962) thousand, compared to $(92,550) thousand for the same period in 2024, indicating an improvement[21] - Total revenue for the three-month period ended September 30, 2025, was $120,630,000, a 24.2% increase from $97,156,000 in the same period of 2024[123] Revenue Breakdown - Digital advertising revenue for the three-month period ended September 30, 2025, was $85,200,000, compared to $45,871,000 in 2024, representing an increase of 85.5%[123] - Broadcast advertising revenue for the three-month period ended September 30, 2025, was $25,496,000, down from $39,998,000 in 2024, a decrease of 36.5%[123] - The Advertising Technology & Services segment saw a significant revenue increase of 104% to $76.13 million for the three-month period ended September 30, 2025, compared to $37.35 million in 2024[140] - The media segment reported a 26% decrease in revenue to $44.51 million for the three-month period ended September 30, 2025, compared to $59.80 million in 2024[140] Assets and Liabilities - The total current assets decreased to $184.49 million as of September 30, 2025, compared to $186.30 million at the end of 2024, a decline of approximately 1%[16] - Total liabilities decreased slightly to $336.44 million as of September 30, 2025, from $341.26 million at the end of 2024, a reduction of about 1%[16] - The company’s total stockholders' equity decreased to $78.17 million as of September 30, 2025, compared to $146.02 million at the end of 2024, a decline of about 47%[16] Cash Flow and Liquidity - Cash and cash equivalents decreased to $61.76 million as of September 30, 2025, down from $95.91 million at the end of 2024, a decline of approximately 36%[16] - Cash flows from operating activities provided $861 thousand for the nine-month period ended September 30, 2025, a significant decrease from $61,922 thousand in 2024[21] - The Company’s liquidity position is supported by existing cash and projected operating cash flows, which are deemed adequate to meet operating needs over the next twelve months[38] Impairment and Charges - The company incurred an impairment charge of $5.71 million during the three-month period ended September 30, 2025[17] - The Company recorded a goodwill impairment charge of $43.3 million for the media reporting unit due to lower than anticipated political advertising revenue and higher projected future costs[60] - The Company recorded impairment charges of $17.9 million for FCC licenses and $35.4 million for goodwill in the digital segment during the first quarter of 2024[64] - The Company recorded a loss on lease abandonment of $16.1 million related to the acceleration of amortization of the right-of-use asset and $9.1 million for leasehold improvements in the first quarter of 2025[67] Restructuring and Operational Changes - The Company implemented a restructuring plan resulting in a reduction of 39 employees, approximately 5% of the media segment workforce, incurring severance charges of approximately $0.7 million[69] - Total restructuring charges recorded during the third quarter of 2025 amounted to $3.2 million, with a remaining restructuring liability of $0.8 million as of September 30, 2025[71] - The Company discontinued a significant portion of its operations in 2024, primarily affecting its former digital segment, following a strategic review of its digital strategy[25] Debt and Financing - The Company entered into a Credit Facility consisting of a $200.0 million senior secured Term A Facility and a $75.0 million Revolving Credit Facility, with $11.5 million drawn on the 2023 Closing Date[75] - As of September 30, 2025, the interest rate on the Company's Term A Facility and the drawn portion of the Revolving Credit Facility was 7.26%[79] - The carrying amount of the Term Loan A Facility as of September 30, 2025, was $161.8 million, net of $0.7 million of unamortized debt issuance costs[89] Stock-Based Compensation - Stock-based compensation expense for the nine-month period ended September 30, 2025, was $8,102 thousand, compared to $12,422 thousand for the same period in 2024[21] - Stock-based compensation expense related to restricted stock units (RSUs) was $6.6 million for the nine-month period ended September 30, 2025, compared to $11.7 million for the same period in 2024, reflecting a decrease of approximately 43.5%[50] - The total unrecognized compensation expense related to PSUs as of September 30, 2025, was $2.4 million, expected to be recognized over a weighted-average period of 2.1 years[53] Discontinued Operations - The Company recorded a loss of $40.7 million from the sale of its EGP business, which was included in net income (loss) from discontinued operations[146] - The EGP business was classified as held for sale, with results presented as discontinued operations, reflecting a strategic shift impacting financial results[156] - For the nine-month period ended September 30, 2024, the net loss from discontinued operations was $77.9 million, with significant impairment charges of $49.4 million[157][162]