SANTA MONICA, Calif., Nov. 1, 2012 /PRNewswire/ -- Entravision Communications Corporation today reported financial results for the three- and nine-month periods ended September 30, 2012.
Historical results, which are attached, are in thousands of U.S. dollars (except share and per share data). This press release contains certain non-GAAP financial measures as defined by SEC Regulation G. The GAAP financial measure most directly comparable to each of these non-GAAP financial measures, and a table reconciling each of these non-GAAP financial measures to its most directly comparable GAAP financial measure, is included beginning on page 7. Unaudited financial highlights are as follows:
Three-Month Period Nine-Month Period Ended September 30, Ended September 30, ------------------- ------------------- 2012 2011 % Change 2012 2011 % Change ---- ---- -------- ---- ---- -------- Net revenue $58,486 $50,115 17% $159,501 $144,424 10% Operating expenses (1) 32,886 31,203 5% 96,403 93,040 4% Corporate expenses (2) 4,465 3,885 15% 12,527 11,402 10% Consolidated adjusted EBITDA (3) 21,640 15,125 43% 51,521 41,132 25% Free cash flow (4) $10,545 $4,272 147% $19,209 $7,679 150% Free cash flow per share, basic and diluted (4) $0.12 $0.05 140% $0.22 $0.09 144% Net income (loss) applicable to common stockholders $7,233 $(1,384) NM $5,904 $(6,168) NM Net income (loss) per share applicable to common stockholders, basic and diluted $0.08 $(0.02) NM $0.07 $(0.07) NM Weighted average common shares outstanding, basic 85,940,225 85,055,659 85,861,671 85,049,518 Weighted average common shares outstanding, diluted 86,386,655 85,055,659 86,220,868 85,049,518
(1) Operating expenses include direct operating, selling, general and administrative expenses. Included in operating expenses are $0.3 million and $0.2 million of non-cash stock- based compensation for the three- month periods ended September 30, 2012 and 2011, respectively and $0.6 million of non-cash stock-based compensation for each of the nine- month periods ended September 30, 2012 and 2011. Operating expenses do not include corporate expenses, depreciation and amortization, impairment charge, gain (loss) on sale of assets and gain (loss) on debt extinguishment. (2) Corporate expenses include $0.5 million and $0.3 million of non-cash stock- based compensation for the three- month periods ended September 30, 2012 and 2011, respectively and $1.1 million and $0.7 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2012 and 2011, respectively. (3) Consolidated adjusted EBITDA means net income (loss) plus gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation included in operating and corporate expenses, net interest expense, other income (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses and syndication programming amortization less syndication programming payments. We use the term consolidated adjusted EBITDA because that measure is defined in our revolving credit facility and does not include gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation, net interest expense, other income (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses and syndication programming amortization and does include syndication programming payments. While many in the financial community and we consider consolidated adjusted EBITDA to be important, it should be considered in addition to, but not as a substitute for or superior to, other measures of liquidity and financial performance prepared in accordance with accounting principles generally accepted in the United States of America, such as cash flows from operating activities, operating income and net income. As consolidated adjusted EBITDA excludes non-cash gain (loss) on sale of assets, non- cash depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation expense, net interest expense, other income (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses and syndication programming amortization and includes syndication programming payments, consolidated adjusted EBITDA has certain limitations because it excludes and includes several important non-cash financial line items. Therefore, we consider both non-GAAP and GAAP measures when evaluating our business. Consolidated adjusted EBITDA is also used to make executive compensation decisions. (4) Free cash flow is defined as consolidated adjusted EBITDA less cash paid for income taxes, net interest expense, capital expenditures and dividend payments. Net interest expense is defined as interest expense, less non-cash interest expense relating to amortization of debt finance costs, less non-cash interest expense relating to discount amortization on our $364 million aggregate principal amount of 8.750% senior secured first lien notes due 2017 (the "Notes"), and less interest income. Free cash flow per share is defined as free cash flow divided by the basic or diluted weighted average common shares outstanding.
