Entravision Communications Corp. (EVC, Financial) filed Quarterly Report for the period ended 2009-03-31.
Entravision is a diversified media company utilizing a combination oftelevision radio outdoor and publishing operations to reach Hispanicconsumers in the United States. The company is the largest Univision-affiliated television group in the United States. It owns Univision-affiliated stations in 17 of the top 50 Hispanic markets in the United States. Also the company operates the largest centrally programmed Spanish-language radio network. The company produces seven formats to appeal to the diverse musical tastes of the listeners. Entravision Communications Corp. has a market cap of $58.28 million; its shares were traded at around $0.69 with and P/S ratio of 0.25. Entravision Communications Corp. had an annual average earning growth of 7.4% over the past 5 years.
Direct Operating Expenses. Direct operating expenses decreased to $21.9 million for the three-month period ended March 31, 2009 from $24.7 million for the three-month period ended March 31, 2008, a decrease of $2.8 million. Of the overall decrease, $1.8 million came from our television segment and was primarily attributable to a decrease in national representation fees and other expenses associated with the decrease in net revenue and a decrease in salary expense due to a reduction in personnel. Additionally, $1.0 million of the overall decrease came from our radio segment and was primarily attributable to a decrease in expenses associated with the decrease in net revenue and a decrease in salary expense due to a reduction in personnel. As a percentage of net revenue, direct operating expenses increased to 52% for the three-month period ended March 31, 2009 from 44% for the three-month period ended March 31, 2008. Direct operating expenses as a percentage of net revenue increased because the decrease in revenue outpaced the decrease in direct operating expenses. We believe that direct operating expenses will continue to decrease during at least the remainder of 2009 as a result of the recent cost-savings measures that we implemented during the fourth quarter of 2008 and the first quarter of 2009. We also believe that direct operating expenses as a percentage of net revenue will continue to increase during the remainder of 2009 because decreases in revenue will continue to outpace decreases in direct operating expenses.
Selling, General and Administrative Expenses. Selling, general and administrative expenses decreased to $10.0 million for the three-month period ended March 31, 2009 from $10.7 million for the three-month period ended March 31, 2008, a decrease of $0.7 million. Of the overall decrease, $0.4 million came from our radio segment and was primarily attributable to decreases in salary expense due to a reduction in personnel and promotional spending. Additionally, $0.3 million of the overall decrease came from our television segment and was primarily attributable to a decrease in salary expense due to a reduction in personnel, payroll taxes and employee benefits. As a percentage of net revenue, selling, general and administrative expenses increased to 24% for the three-month period ended March 31, 2009 from 19% for the three-month period ended March 31, 2008. Selling, general and administrative expenses as a percentage of net revenue increased because the decrease in revenue outpaced the decrease in selling, general and administrative expenses. We believe that selling, general and administrative expenses will continue to decrease during at least the remainder of 2009 as a result of the recent cost-savings measures that we implemented during the fourth quarter of 2008 and the first quarter of 2009. We also believe that selling, general and administrative expenses as a percentage of net revenue will continue to increase during the remainder of 2009 because decreases in revenue will continue to outpace decreases in selling, general and administrative expenses.
Corporate Expenses. Corporate expenses decreased to $3.9 million for the three-month period ended March 31, 2009 from $4.5 million for the three-month period ended March 31, 2008, a decrease of $0.6 million. The decrease was primarily attributable to the elimination of bonuses paid to executive officers and a decrease in employee benefits. As a percentage of net revenue, corporate expenses increased to 9% for the three-month period ended March 31, 2009 from 8% for the three-month period ended March 31, 2008. Corporate expenses as a percentage of net revenue increased because the decrease in revenue outpaced the decrease in corporate expenses. We believe that corporate expenses will continue to decrease during at least the remainder of 2009 as a result of the recent cost-savings measures that we implemented during the fourth quarter of 2008 and the first quarter of 2009. We also believe that corporate expenses as a percentage of net revenue will continue to increase during the remainder of 2009 because decreases in revenue will continue to outpace decreases in corporate expenses.
Depreciation and Amortization. Depreciation and amortization decreased to $5.4 million for the three-month period ended March 31, 2009 from $5.5 million for the three-month period ended March 31, 2008, a decrease of $0.1 million.
Interest Expense. Interest expense decreased to $5.1 million for the three-month period ended March 31, 2009 from $22.6 million for the three-month period ended March 31, 2008, a decrease of $17.5 million. The three-month period ended March 31, 2009 had lower interest expense than the three-month period ended March 31, 2008 primarily attributable to the change in the fair value of our interest rate swap agreements as well as a lower amount outstanding in our term loan debt.
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Entravision is a diversified media company utilizing a combination oftelevision radio outdoor and publishing operations to reach Hispanicconsumers in the United States. The company is the largest Univision-affiliated television group in the United States. It owns Univision-affiliated stations in 17 of the top 50 Hispanic markets in the United States. Also the company operates the largest centrally programmed Spanish-language radio network. The company produces seven formats to appeal to the diverse musical tastes of the listeners. Entravision Communications Corp. has a market cap of $58.28 million; its shares were traded at around $0.69 with and P/S ratio of 0.25. Entravision Communications Corp. had an annual average earning growth of 7.4% over the past 5 years.
Highlight of Business Operations:
Net Revenue. Net revenue decreased to $41.7 million for the three-month period ended March 31, 2009 from $55.7 million for the three-month period ended March 31, 2008, a decrease of $14.0 million. Of the overall decrease, $7.9 million came from our television segment and was primarily attributable to a decrease in local and national advertising rates, which in turn was primarily due to the continuing weak economy. Additionally, $6.1 million of the overall decrease came from our radio segment and was primarily attributable to a decrease in local and national advertising sales and advertising rates, which in turn was primarily due to the continuing weak economy.Direct Operating Expenses. Direct operating expenses decreased to $21.9 million for the three-month period ended March 31, 2009 from $24.7 million for the three-month period ended March 31, 2008, a decrease of $2.8 million. Of the overall decrease, $1.8 million came from our television segment and was primarily attributable to a decrease in national representation fees and other expenses associated with the decrease in net revenue and a decrease in salary expense due to a reduction in personnel. Additionally, $1.0 million of the overall decrease came from our radio segment and was primarily attributable to a decrease in expenses associated with the decrease in net revenue and a decrease in salary expense due to a reduction in personnel. As a percentage of net revenue, direct operating expenses increased to 52% for the three-month period ended March 31, 2009 from 44% for the three-month period ended March 31, 2008. Direct operating expenses as a percentage of net revenue increased because the decrease in revenue outpaced the decrease in direct operating expenses. We believe that direct operating expenses will continue to decrease during at least the remainder of 2009 as a result of the recent cost-savings measures that we implemented during the fourth quarter of 2008 and the first quarter of 2009. We also believe that direct operating expenses as a percentage of net revenue will continue to increase during the remainder of 2009 because decreases in revenue will continue to outpace decreases in direct operating expenses.
Selling, General and Administrative Expenses. Selling, general and administrative expenses decreased to $10.0 million for the three-month period ended March 31, 2009 from $10.7 million for the three-month period ended March 31, 2008, a decrease of $0.7 million. Of the overall decrease, $0.4 million came from our radio segment and was primarily attributable to decreases in salary expense due to a reduction in personnel and promotional spending. Additionally, $0.3 million of the overall decrease came from our television segment and was primarily attributable to a decrease in salary expense due to a reduction in personnel, payroll taxes and employee benefits. As a percentage of net revenue, selling, general and administrative expenses increased to 24% for the three-month period ended March 31, 2009 from 19% for the three-month period ended March 31, 2008. Selling, general and administrative expenses as a percentage of net revenue increased because the decrease in revenue outpaced the decrease in selling, general and administrative expenses. We believe that selling, general and administrative expenses will continue to decrease during at least the remainder of 2009 as a result of the recent cost-savings measures that we implemented during the fourth quarter of 2008 and the first quarter of 2009. We also believe that selling, general and administrative expenses as a percentage of net revenue will continue to increase during the remainder of 2009 because decreases in revenue will continue to outpace decreases in selling, general and administrative expenses.
Corporate Expenses. Corporate expenses decreased to $3.9 million for the three-month period ended March 31, 2009 from $4.5 million for the three-month period ended March 31, 2008, a decrease of $0.6 million. The decrease was primarily attributable to the elimination of bonuses paid to executive officers and a decrease in employee benefits. As a percentage of net revenue, corporate expenses increased to 9% for the three-month period ended March 31, 2009 from 8% for the three-month period ended March 31, 2008. Corporate expenses as a percentage of net revenue increased because the decrease in revenue outpaced the decrease in corporate expenses. We believe that corporate expenses will continue to decrease during at least the remainder of 2009 as a result of the recent cost-savings measures that we implemented during the fourth quarter of 2008 and the first quarter of 2009. We also believe that corporate expenses as a percentage of net revenue will continue to increase during the remainder of 2009 because decreases in revenue will continue to outpace decreases in corporate expenses.
Depreciation and Amortization. Depreciation and amortization decreased to $5.4 million for the three-month period ended March 31, 2009 from $5.5 million for the three-month period ended March 31, 2008, a decrease of $0.1 million.
Interest Expense. Interest expense decreased to $5.1 million for the three-month period ended March 31, 2009 from $22.6 million for the three-month period ended March 31, 2008, a decrease of $17.5 million. The three-month period ended March 31, 2009 had lower interest expense than the three-month period ended March 31, 2008 primarily attributable to the change in the fair value of our interest rate swap agreements as well as a lower amount outstanding in our term loan debt.
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