Entravision 10-Q: Digital Ads, Corporate Costs, and Acquisition News

TL;DR

Entravision's Q2 10-Q shows digital ad performance and a new acquisition deal for Mediadonuts.

AI Summary

Entravision Communications Corp. filed its 10-Q for the period ending June 30, 2024. The company reported on its financial performance, including details on its digital advertising segment and corporate expenses. Notably, the filing mentions a definitive agreement for the acquisition of Mediadonuts Pte Ltd, signed on June 28, 2024.

Why It Matters

This filing provides investors with an update on Entravision's financial health and strategic moves, including a significant acquisition that could impact future revenue streams.

Risk Assessment

Risk Level: medium — The filing details financial performance and strategic acquisitions, which carry inherent business and financial risks.

Key Numbers

• 20240630 — Reporting Period End Date (Indicates the end of the financial quarter being reported.)
• 20240808 — Filing Date (Shows when the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• Entravision Communications Corp. (company) — Filer of the 10-Q
• Mediadonuts Pte Ltd (company) — Subject of a definitive agreement for acquisition
• June 30, 2024 (date) — End of the reporting period
• June 28, 2024 (date) — Date of the definitive agreement for Mediadonuts acquisition

FAQ

Key Financial Figures

• $0.0001 — 5, 2024, there were 80,634,381 shares, $0.0001 par value per share, of the registrant'

Filing Documents

• evc-20240630.htm (10-Q) — 2905KB
• evc-ex10_6.htm (EX-10.6) — 25KB
• evc-ex10_7.htm (EX-10.7) — 11KB
• evc-ex31_1.htm (EX-31.1) — 12KB
• evc-ex31_2.htm (EX-31.2) — 12KB
• evc-ex32.htm (EX-32) — 11KB
• 0000950170-24-093955.txt ( ) — 14425KB
• evc-20240630.xsd (EX-101.SCH) — 1815KB
• evc-20240630_htm.xml (XML) — 3446KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION ITEM 1.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 4 CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) AS OF JUNE 30, 2024 AND DECEMBER 31, 2023 4 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE-AND SIX-MONTH PERIODS ENDED JUNE 30, 2024 AND JUNE 30, 2023 5 CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) FOR THE THREE- AND SIX-MONTH PERIODS ENDED JUNE 30, 2024 AND JUNE 30, 2023 6 CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) FOR THE THREE- AND SIX-MONTH PERIODS ENDED JUNE 30, 2024 AND JUNE 30, 2023 7 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2024 AND JUNE 30, 2023 9 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 10 ITEM 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 28 ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 37 ITEM 4.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 37

OTHER INFORMATION

PART II. OTHER INFORMATION ITEM 1.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 38 ITEM 1A.

RISK FACTORS

RISK FACTORS 38 ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 38 ITEM 3. DEFAULTS UPON SENIOR SECURITIES 38 ITEM 4. MINE SAFETY DISCLOSURES 38 ITEM 5. OTHER INFORMATION 38 ITEM 6. EXHIBITS 39 GENERAL NOTE As discussed in more detail throughout this report, during the second quarter of 2024 we sold our Entravision Global Partners ("EGP") business, which was the largest business unit of our digital operations. We have continuing operations from certain other digital operations, primarily Smadex, our programmatic ad purchasing platform, and Adwake, our mobile growth solutions business. Unless the context indicates otherwise, references throughout this report to our digital segment refer to our continuing digital operations and references to discontinued operations refer to EGP prior to its sale.

Forward-Looking Statements

Forward-Looking Statements This document contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. All statements other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws, including, but not limited to, any projections of earnings, revenue or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements concerning proposed new services or developments; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing. Forward-looking statements may include the words "may," "could," "will," "estimate," "intend," "continue," "believe," "expect", "anticipate" or other similar words. These forward-looking statements present our estimates and assumptions only as of the date of this report. Except for our ongoing obligation to disclose material information as required by the federal securities laws, we do not intend, and undertake no obligation, to update any forward-looking statement. Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and inherent risks and uncertainties. Some of the key factors impacting these risks and uncertainties include, but are not limited to: risks related to our substantial indebtedness and/or our ability to raise capital; provisions of our debt instruments, including the agreement dated as of March 17,

FINANCI AL STATEMENTS

ITEM 1. FINANCI AL STATEMENTS ENTRAVISION COMMUNICATIONS CORPORATION CONDENSED CO NSOLIDATED BALANCE SHEETS (UNAUDITED) (In thousands, except share and per share data) June 30, December 31, 2024 2023 ASSETS Current assets Cash and cash equivalents $ 85,136 $ 67,398 Marketable securities 3,160 13,172 Restricted cash 779 770 Trade receivables, (including related parties of $ 8,098 and $ 10,051 ) net of allowance for doubtful accounts of $ 2,626 and $ 2,399 68,847 70,082 Assets held for sale - 301 Prepaid expenses and other current assets (including related parties of $ 274 and $ 274 ) 46,681 16,863 Current assets of discontinued operations - 217,269 Total current assets 204,603 385,855 Property and equipment, net of accumulated depreciation of $ 160,070 and $ 189,708 63,418 66,932 Intangible assets subject to amortization, net of accumulated amortization of $ 61,374 and $ 59,647 (including related parties of $ 2,321 and $ 2,785 ) 5,372 7,100 Intangible assets not subject to amortization 195,174 195,174 Goodwill 50,673 50,674 Deferred income taxes 87 265 Operating leases right of use asset 42,799 42,868 Other assets 7,480 21,223 Noncurrent assets of discontinued operations - 95,855 Total assets $ 569,606 $ 865,946 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Current maturities of long-term debt $ - $ 8,750 Accounts payable and accrued expenses (including related parties of $ 1,292 and $ 1,071 ) 59,547 47,776 Operating lease liabilities 7,736 6,748 Current liabilities of discontinued operations - 208,779 Total current liabilities 67,283 272,053 Long-term debt, less current maturities, net of unamortized debt issuance costs of $ 903 and $ 1,116 186,847 197,884 Long-term operating lease liabilities 44,127 45,178 Other long-term liabilities 4,370 4,624 Deferred income taxes 46

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