NYSE$EVC

Entravision Communications-A · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Reported a net loss due to the impact of the COVID-19 pandemic and impairment charges, with television segment growth offset by declines in radio and digital segments.

Entravision Communications Corporation reported a challenging first quarter of 2020, marked by a net loss of $35.592 million due to the impact of the COVID-19 pandemic and impairment charges. While the television segment experienced growth, the radio and digital segments faced declines. The company is focused on cost reduction and adapting its multiplatform strategy.

  • Net revenue decreased slightly by 1% year-over-year to $64.249 million.
  • Net loss was $35.592 million, a significant decline compared to a net income of $1.424 million in the same period last year.
  • The company recognized impairment charges totaling $39.835 million due to the economic crisis and competitive pressures.
  • Television segment revenue increased by 2%, while radio and digital segments experienced declines of 2% and 8%, respectively.

Headline financials

Total Revenue

$64.2M

Previous: $64.7M-0.7%
EPS (adj)

$0.06

Previous: $0.02+200.0%
Capital Expenditures

-$2.67M

Previous: -$6.07M+56.0%
Free Cash Flow

-$38.3M

Previous: -$4.65M-723.2%
Net Income

-$35.6M

Previous: $1.42M-2599.4%
Operating Income

-$35.2M

Previous: $4.99M-806.1%
Gross Profit

-$26.7M

Previous: -$28.9M+7.8%
Cash & Equivalents

$53.5M

Previous: $52M+2.9%
Total Assets

$613M

Previous: $720M-14.9%
Stock-Based Comp

$789K

Previous: $800K-1.4%

Revenue & EPS history

Entravision · Revenue · Quarterly

$64.2M

Q1 2020-0.7%vs Q1 2019
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Forward guidance

Entravision anticipates a significantly greater adverse impact in future periods due to the COVID-19 pandemic. The company is focused on maintaining a solid balance sheet, aligning operations, and reducing costs to navigate the economic downturn.

Tailwinds

  • Maintaining a solid balance sheet.
  • Undertaking an extensive review of the business.
  • Aligning operations to improve efficiency.
  • Reducing costs to mitigate financial impact.
  • Well positioned to attract Latino and other audiences worldwide.

Headwinds

  • First quarter results were affected by the COVID-19 pandemic and the resulting economic crisis late in the period.
  • Experienced declines in the radio and digital segments compared to the prior year.
  • Expect a significantly greater adverse impact in future periods, depending upon the extent and duration of the economic downturn.
  • Digital reporting unit was already facing declining results prior to the onset of the pandemic, caused by continuing competitive pressures and rapid changes in the digital advertising industry.
  • Results of television and radio reporting units prior to the onset of the pandemic were exceeding internal budgets, but declined sharply in the last few weeks of the quarter because of the pandemic and the resulting economic crisis.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.5%

Avg return

Earnings day

-0.1%

Avg return

5 days after

+4.0%

Avg return

30 days after

55%

32 / 58 earnings

Positive

+15.8%

Q4 2025

Best reaction

-51.1%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.7%+88.4%+138.9%
Q4 2025+15.8%-3.0%+0.0%
Q3 2025+2.1%+5.6%-4.2%
Q1 2025+0.0%+2.1%+9.5%
Q4 2024-16.8%-9.6%-7.2%
Q3 2024-3.7%+3.7%-3.7%
Q2 2024+1.1%-1.6%+6.6%
Q1 2024+3.2%-3.7%-0.9%
Q4 2023-51.1%-59.3%-48.6%
Q3 2023+12.3%+6.6%+12.8%
Q2 2023-17.7%-19.4%-19.2%
Q1 2023-8.7%-21.5%-29.4%
Q4 2022-6.1%-5.0%-13.0%
Q3 2022+8.2%+6.5%+15.8%
Q2 2022+2.3%+1.2%-6.6%
Q1 2022-16.1%-14.0%-1.3%
Q4 2021-4.1%-6.2%-1.8%
Q3 2021+2.9%-1.0%-17.4%
Q2 2021+15.1%+25.1%+26.9%
Q1 2021-3.1%-5.8%+10.9%
Q4 2020+11.5%+16.2%+5.8%
Q3 2020+1.6%+25.7%+65.8%
Q2 2020+3.0%+1.5%+11.9%
Q1 2020+10.8%+0.0%+43.8%
Q4 2019+0.0%+11.7%-23.9%
Q3 2019+1.7%+1.4%-3.8%
Q2 2019-8.5%-8.5%-2.3%
Q1 2019+4.1%+6.1%-4.8%
Q4 2018+10.5%+5.1%+3.0%
Q3 2018-17.1%-31.5%-41.0%
Q2 2018+4.5%+7.9%+18.0%
Q1 2018-8.3%-13.5%-11.5%
Q4 2017-19.8%-26.2%-23.8%
Q3 2017-2.9%+8.6%+41.0%
Q2 2017-4.5%-9.1%-14.4%
Q1 2017-4.2%-1.7%+0.0%
Q4 2016+9.9%+11.7%+11.7%
Q3 2016-6.3%-7.8%+3.9%
Q2 2016+5.5%+7.9%+7.3%
Q1 2016-1.9%
Q4 2015-1.2%
Q3 2015+2.7%
Q2 2015+8.0%
Q1 2015+1.2%
Q4 2014+0.0%
Q3 2014+2.2%
Q2 2014-13.6%
Q1 2014-4.2%
Q4 2013+8.9%
Q3 2013-5.6%
Q2 2013+14.6%
Q1 2013+7.2%
Q2 2012+12.1%
Q4 2012+4.7%
Q3 2012+1.4%
Q4 2011+7.5%
Q2 2011+7.5%
Q3 2011-9.8%

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