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8-K - FORM 8-K - ENTRAVISION COMMUNICATIONS CORPd312044d8k.htm

Exhibit 99.1

 

LOGO

ENTRAVISION COMMUNICATIONS CORPORATION REPORTS

FOURTH QUARTER AND FULL YEAR 2011 RESULTS

SANTA MONICA, CALIFORNIA, March 7, 2012 – Entravision Communications Corporation (NYSE: EVC) today reported financial results for the three- and twelve-month periods ended December 31, 2011.

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 8. Unaudited financial highlights are as follows:

 

     Three Months Ended December 31,     Twelve Months Ended December 31,  
     2011     2010     % Change     2011     2010     % Change  

Net revenue

   $ 49,972      $ 50,647        (1 )%    $ 194,396      $ 200,476        (3 )% 

Operating expenses (1)

     32,061        30,703        4     125,101        122,848        2

Corporate expenses (2)

     4,267        7,368        (42 )%      15,669        18,416        (15 )% 

Consolidated adjusted EBITDA (3)

     14,343        16,697        (14 )%      55,475        63,635        (13 )% 

Free cash flow (4)

   $ (1,817   $ 6,215        NM      $ 5,862      $ 18,878        (69 )% 

Free cash flow per share, basic and diluted (4)

   $ (0.02   $ 0.07        NM      $ 0.07      $ 0.22        (68 )% 

Net income (loss) applicable to common stockholders

   $ (2,032   $ (29,273     (93 )%    $ (8,200   $ (18,086     (55 )% 

Net income (loss) per share applicable to common stockholders, basic and diluted

   $ (0.02   $ (0.35     (94 )%    $ (0.10   $ (0.21     (52 )% 

Weighted average common shares outstanding, basic and diluted

     85,055,659        84,517,508          85,051,066        84,488,930     

 

(1) Operating expenses include direct operating, selling, general and administrative expenses. Included in operating expenses are $0.4 million and $0.6 million of non-cash stock-based compensation for the three-month periods ended December 31, 2011 and 2010, respectively and $1.0 million and $1.4 million of non-cash stock-based compensation for the twelve-month periods ended December 31, 2011 and 2010, respectively. 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 $0.6 million and $0.8 million of non-cash stock-based compensation for the three-month periods ended December 31, 2011 and 2010, respectively and $1.3 million and $1.6 million of non-cash stock-based compensation for the twelve-month periods ended December 31, 2011 and 2010, 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 $384 million aggregate principal amount of 8.750% senior secured first lien notes due 2017 (the “Notes”), less interest income and less the change in the fair value of our interest rate swaps. Free cash flow per share is defined as free cash flow divided by the basic or diluted weighted average common shares outstanding.


Entravision Communications

Page 2 of 9

 

Commenting on the Company’s earnings results, Walter F. Ulloa, Chairman and Chief Executive Officer, said, “During 2011, we faced challenging comparisons to 2010, when we benefited from World Cup and political advertising revenue. We also continued to face a challenging advertising environment generally, as our advertising customers continue to make difficult choices in the current uncertain economic environment. Nonetheless, core advertising showed modest improvement during 2011. Our audience shares remain strong in the nation’s most densely populated Hispanic markets, and we believe we are well positioned to benefit as the U.S. Hispanic market continues to expand and advertisers increasingly recognize the importance of reaching our target audience.”

Repurchase of Outstanding Debt and Cash Dividend

The Company repurchased $16.2 million in aggregate principal amount of its 8.750% senior secured first lien notes due 2017 in open market transactions during the fourth quarter of 2011. The Company also declared and paid a special cash dividend of $0.06 per share to shareholders of the Company’s Class A, Class B and Class U common stock during the fourth quarter of 2011. The total amount of cash disbursed for the special dividend was $5.1 million.

Financial Results

Three Months Ended December 31, 2011 Compared to Three Months Ended December 31, 2010

(Unaudited)

 

     Three Months Ended December 31,  
     2011     2010     % Change  

Net revenue

   $ 49,972      $ 50,647        (1 )% 

Operating expenses (1)

     32,061        30,703        4

Corporate expenses (1)

     4,267        7,368        (42 )% 

Depreciation and amortization

     4,481        4,765        (6 )% 

Impairment charge

     —          36,109        (100 )% 
  

 

 

   

 

 

   

Operating income (loss)

     9,163        (28,298     NM   

Interest expense, net

     (9,303     (9,257     0

Gain (loss) on debt extinguishment

     (423     —          NM   
  

 

 

   

 

 

   

Income (loss) before income taxes

     (563     (37,555     (99 )% 

Income tax (expense) benefit

     (1,469     8,478        NM   
  

 

 

   

 

 

   

Net income (loss) before equity in net income (loss) of nonconsolidated affiliates

     (2,032     (29,077     (93 )% 

Equity in net income (loss) of non consolidated affiliates

     —          (196     (100 )% 
  

 

 

   

 

 

   

Net income (loss)

   $ (2,032   $ (29,273     (93 )% 
  

 

 

   

 

 

   

 

(1) Operating expenses and corporate expenses are defined on page 1.

Net revenue decreased to $50.0 million for the three-month period ended December 31, 2011 from $50.6 million for the three-month period ended December 31, 2010, a decrease of $0.6 million. Net revenue from our radio segment decreased $1.0 million and was primarily attributable to a decrease in political advertising revenue, which was not material in 2011. The decrease from our radio segment was partially offset by a $0.4 million increase from our television segment that was primarily attributable to an increase in local advertising and an increase in retransmission consent revenue, partially offset by a decrease in political advertising revenue, which was not material in 2011.


Entravision Communications

Page 3 of 9

 

Operating expenses increased to $32.1 million for the three-month period ended December 31, 2011 from $30.7 million for the three-month period ended December 31, 2010, an increase of $1.4 million. The increase was primarily attributable to an increase in salary expense as a result of the partial restoration of employee salaries in 2011 and expenses associated with Lotus/Entravision Reps LLC, partially offset by a decrease in bad debt expense.

Corporate expenses decreased to $4.3 million for the three-month period ended December 31, 2011 from $7.4 million for the three-month period ended December 31, 2010, a decrease of $3.1 million. The decrease was primarily attributable to higher expenses in 2010 due to the creation of a reserve for a $3.0 million note receivable and accrued interest relating to the sale of our publishing segment in 2003, partially offset by the increase in interactive expenses and partial restoration of employee salaries in 2011.

Twelve Months Ended December 31, 2011 Compared to Twelve Months Ended December 31, 2010

(Unaudited)

 

     Twelve Months Ended
December 31,
 
     2011     2010     % Change  

Net revenue

   $ 194,396      $ 200,476        (3 )% 

Operating expenses (1)

     125,101        122,848        2

Corporate expenses (1)

     15,669        18,416        (15 )% 

Depreciation and amortization

     18,653        19,229        (3 )% 

Impairment charge

     —          36,109        (100 )% 
  

 

 

   

 

 

   

Operating income (loss)

     34,973        3,874        NM   

Interest expense, net

     (37,647     (24,169     56

Other income (loss)

     687        —          NM   

Gain (loss) on debt extinguishment

     (423     (987     (57 )% 
  

 

 

   

 

 

   

Income (loss) before income taxes

     (2,410     (21,282     (89 )% 

Income tax (expense) benefit

     (5,790     3,376        NM   
  

 

 

   

 

 

   

Net income (loss) before equity in net income (loss) of nonconsolidated affiliates

     (8,200     (17,906     (54 )% 

Equity in net income (loss) of nonconsolidated affiliates

     —          (180     (100 )% 
  

 

 

   

 

 

   

Net income (loss)

   $ (8,200   $ (18,086     (55 )% 
  

 

 

   

 

 

   

 

(1) Operating expenses and corporate expenses are defined on page 1.

Net revenue decreased to $194.4 million for the year ended December 31, 2011 from $200.5 million for the year ended December 31, 2010, a decrease of $6.1 million. Of the overall decrease, $5.0 million came from our radio segment and was primarily attributable to the non-occurrence of advertising revenue from the World Cup in 2011 compared to 2010 and a decrease in political advertising revenue, which is not material in 2011. Additionally, $1.1 million of the overall decrease came from our television segment and was primarily attributable to a decrease in national advertising, the non-occurrence of advertising revenue from the World Cup in 2011 compared to 2010 and a decrease in political advertising revenue, which was not material in 2011, partially offset by an increase in retransmission consent revenue.

Operating expenses increased to $125.1 million for the twelve-month period ended December 31, 2011 from $122.8 million for the twelve-month period ended December 31, 2010, an increase of $2.3 million. The increase was primarily attributable to an increase in salary expense as a result of the partial restoration of employee salaries in 2011 and expenses associated with Lotus/Entravision Reps LLC, partially offset by a decrease in sales expenses associated with the decrease in net revenue.

Corporate expenses decreased to $15.7 million for the year ended December 31, 2011 from $18.4 million for the year ended December 31, 2010, a decrease of $2.7 million. The decrease was primarily attributable to higher expenses in 2010 due to the creation of a reserve for a $3.0 million note receivable and accrued interest relating to the sale of our publishing segment in 2003, partially offset by the increase in interactive expenses and partial restoration of employee salaries in 2011.


Entravision Communications

Page 4 of 9

 

Segment Results

The following represents selected unaudited segment information:

 

     Three Months Ended
December 31,
 
     2011      2010      %
Change
 

Net Revenue

        

Television

   $ 34,140       $ 33,775         1

Radio

     15,832         16,872         (6 )% 
  

 

 

    

 

 

    

Total

   $ 49,972       $ 50,647         (1 )% 

Operating Expenses (1)

        

Television

   $ 18,706       $ 18,229         3

Radio

     13,355         12,474         7
  

 

 

    

 

 

    

Total

   $ 32,061       $ 30,703         4

Corporate Expenses (1)

   $ 4,267       $ 7,368         (42 )% 

Consolidated adjusted EBITDA (1)

   $ 14,343       $ 16,697         (14 )% 

 

(1) Operating expenses, Corporate expenses, and Consolidated adjusted EBITDA are defined on page 1.

Entravision Communications Corporation will hold a conference call to discuss its 2011 fourth quarter and full year results on March 7, 2012 at 5 p.m. Eastern Time. To access the conference call, please dial 412-858-4600 ten minutes prior to the start time. The call will be webcast live and archived for replay on the investor relations portion of the Company’s Web site located at www.entravision.com.

Entravision Communications Corporation is a diversified Spanish-language media company utilizing a combination of television, radio and digital operations to reach Hispanic consumers across the United States, as well as the border markets of Mexico. Entravision is the largest affiliate group of both the top-ranked Univision television network and Univision’s TeleFutura network, with television stations in 19 of the nation’s top 50 Hispanic markets. The company also operates one of the nation’s largest groups of primarily Spanish-language radio stations, consisting of 48 owned and operated radio stations. Additionally, Entravision has a variety of cross-platform digital content and sales offerings designed to capitalize on the company’s leadership position within the Hispanic broadcasting community. Entravision shares of Class A Common Stock are traded on The New York Stock Exchange under the symbol: EVC.

This press release contains certain forward-looking statements. These forward-looking statements, which are included in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, may involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this press release. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that actual results will not differ materially from these expectations, and the Company disclaims any duty to update any forward-looking statements made by the Company. From time to time, these risks, uncertainties and other factors are discussed in the Company’s filings with the Securities and Exchange Commission.

# # #

(Financial Table Follows)


Entravision Communications

Page 5 of 9

 

 

For more information, please contact:

 

Christopher T. Young       Mike Smargiassi/Brad Edwards   
Chief Financial Officer       Brainerd Communicators, Inc.   
Entravision Communications Corporation       212-986-6667   
310-447-3870         


Entravision Communications

Page 6 of 9

 

Entravision Communications Corporation

Consolidated Statements of Operations

(In thousands, except share and per share data)

(Unaudited)

 

     Three-Month Period Ended
December 31,
    Twelve-Month Period Ended
December 31,
 
     2011     2010     2011     2010  

Net revenue

   $ 49,972      $ 50,647      $ 194,396      $ 200,476   
  

 

 

   

 

 

   

 

 

   

 

 

 

Expenses:

        

Direct operating expenses

     22,700        20,861        88,590        84,802   

Selling, general and administrative expenses

     9,361        9,842        36,511        38,046   

Corporate expenses

     4,267        7,368        15,669        18,416   

Depreciation and amortization

     4,481        4,765        18,653        19,229   

Impairment charge

     —          36,109        —          36,109   
  

 

 

   

 

 

   

 

 

   

 

 

 
     40,809        78,945        159,423        196,602   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

     9,163        (28,298     34,973        3,874   

Interest expense

     (9,304     (9,258     (37,650     (24,429

Interest income

     1        1        3        260   

Other income (loss)

     —          —          687        —     

Gain (loss) on debt extinguishment

     (423     —          (423     (987
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     (563     (37,555     (2,410     (21,282

Income tax (expense) benefit

     (1,469     8,478        (5,790     3,376   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before equity in net income (loss) of non consolidated affiliate

     (2,032     (29,077     (8,200     (17,906

Equity in net income (loss) of nonconsolidated affiliate

     —          (196     —          (180
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) applicable to common stockholders

   $ (2,032   $ (29,273   $ (8,200   $ (18,086
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic and diluted earnings per share:

        

Net income (loss) per share applicable to common stockholders, basic and diluted

   $ (0.02   $ (0.35   $ (0.10   $ (0.21
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average common shares outstanding, basic and diluted

     85,055,659        84,517,508        85,051,066        84,488,930   
  

 

 

   

 

 

   

 

 

   

 

 

 


Entravision Communications

Page 7 of 9

 

Entravision Communications Corporation

Consolidated Statements of Cash Flows

(In thousands; unaudited)

 

      Three-Month Period
Ended December 31,
    Twelve-Month Period
Ended December 31,
 
     2011     2010     2011     2010  

Cash flows from operating activities:

        

Net income (loss)

   $ (2,032   $ (29,273   $ (8,200   $ (18,086

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

        

Depreciation and amortization

     4,481        4,765        18,653        19,229   

Impairment charge

     —          36,109        —          36,109   

Deferred income taxes

     1,121        (8,556     4,565        (4,342

Amortization of debt issue costs

     565        445        2,207        1,140   

Amortization of syndication contracts

     185        319        1,482        1,159   

Payments on syndication contracts

     (470     (583     (1,976     (2,724

Equity in net (income) loss of nonconsolidated affiliate

     —          196        —          180   

Non-cash stock-based compensation

     984        1,367        2,343        2,970   

Other (income) loss

     —          —          (687     —     

(Gain) loss on debt extinguishment

     423        —          423        934   

Reserve for note receivable

     —          3,018        —          3,018   

Change in fair value of interest rate swap agreements

     —          —          —          (12,188

Changes in assets and liabilities, net of effect of acquisitions and dispositions:

        

(Increase) decrease in restricted cash

     —          214        809        (809

(Increase) decrease in accounts receivable

     (2,229     3,951        (574     2,091   

(Increase) decrease in prepaid expenses and other assets

     597        736        336        310   

Increase (decrease) in accounts payable, accrued expenses and other liabilities

     9,280        7,374        (1,770     8,134   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) operating activities

     12,905        20,082        17,611        37,125   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from investing activities:

        

Purchases of property and equipment and intangibles

     (1,982     (1,572     (8,524     (8,650

Purchase of a business

     (10     —          (598     —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) investing activities

     (1,992     (1,572     (9,122     (8,650
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from financing activities:

        

Proceeds from issuance of common stock

     —          6        42        239   

Payments on long-term debt

     (16,071     —          (17,071     (362,949

Termination of swap agreements

     —          —          —          (4,039

Dividend paid

     (5,102     —          (5,102     —     

Proceeds from borrowings on long-term debt

     —          —          —          394,888   

Payments of deferred debt and offering costs

     —          (1,336     (29     (11,890
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     (21,173     (1,330     (22,160     16,249   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     (10,260     17,180        (13,671     44,724   

Cash and cash equivalents:

        

Beginning

     68,979        55,210        72,390        27,666   
  

 

 

   

 

 

   

 

 

   

 

 

 

Ending

   $ 58,719      $ 72,390      $ 58,719      $ 72,390   
  

 

 

   

 

 

   

 

 

   

 

 

 


Entravision Communications

Page 8 of 9

 

Entravision Communications Corporation

Reconciliation of Consolidated Adjusted EBITDA to Cash Flows From Operating Activities

(In thousands; unaudited)

The most directly comparable GAAP financial measure is operating cash flow. A reconciliation of this non-GAAP measure to cash flows from operating activities for each of the periods presented is as follows:

 

     Three-Month Period
Ended December 31,
    Twelve-Month Period
Ended December 31,
 
     2011     2010     2011     2010  

Consolidated adjusted EBITDA (1)

   $ 14,343      $ 16,697      $ 55,475      $ 63,635   

Interest expense

     (9,304     (9,258     (37,650     (24,429

Interest income

     1        1        3        260   

Gain (loss) on debt extinguishment

     (423     —          (423     (987

Income tax (expense) benefit

     (1,469     8,478        (5,790     3,376   

Amortization of syndication contracts

     (185     (319     (1,482     (1,159

Payments on syndication contracts

     470        583        1,976        2,724   

Non-cash stock-based compensation included in direct operating expenses

     (74     (142     (229     (454

Non-cash stock-based compensation included in selling, general and administrative expenses

     (340     (455     (812     (897

Non-cash stock-based compensation included in corporate expenses

     (570     (770     (1,302     (1,619

Depreciation and amortization

     (4,481     (4,765     (18,653     (19,229

Impairment charge

     —          (36,109     —          (36,109

Other income (loss)

     —          —          687        —     

Reserve for note receivable

     —          (3,018     —          (3,018

Equity in net income (loss) of nonconsolidated affiliates

     —          (196     —          (180
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     (2,032     (29,273     (8,200     (18,086

Depreciation and amortization

     4,481        4,765        18,653        19,229   

Impairment charge

     —          36,109        —          36,109   

Deferred income taxes

     1,121        (8,556     4,565        (4,342

Amortization of debt issue costs

     565        445        2,207        1,140   

Amortization of syndication contracts

     185        319        1,482        1,159   

Payments on syndication contracts

     (470     (583     (1,976     (2,724

Equity in net (income) loss of nonconsolidated affiliate

     —          196        —          180   

Non-cash stock-based compensation

     984        1,367        2,343        2,970   

Other (income) loss

     —          —          (687     —     

(Gain) loss on debt extinguishment

     423        —          423        934   

Reserve for note receivable

     —          3,018        —          3,018   

Change in fair value of interest rate swap agreements

     —          —          —          (12,188

Changes in assets and liabilities, net of effect of acquisitions and dispositions:

        

(Increase) decrease in restricted cash

     —          214        809        (809

(Increase) decrease in accounts receivable

     (2,229     3,951        (574     2,091   

(Increase) decrease in prepaid expenses and other assets

     597        736        336        310   

Increase (decrease) in accounts payable, accrued expenses and other liabilities

     9,280        7,374        (1,770     8,134   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in ) operating activities

   $ 12,905      $ 20,082      $ 17,611      $ 37,125   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) Consolidated adjusted EBITDA is defined on page 1.


Entravision Communications

Page 9 of 9

 

Entravision Communications Corporation

Reconciliation of Free Cash Flow to Net Income (Loss)

(In thousands; unaudited)

The most directly comparable GAAP financial measure is net income (loss). A reconciliation of this non-GAAP measure to net income (loss) for each of the periods presented is as follows:

 

     Three-Month Period
Ended December 31,
    Twelve-Month Period
Ended December 31,
 
     2011     2010     2011     2010  

Consolidated adjusted EBITDA (1)

   $ 14,343      $ 16,697      $ 55,475      $ 63,635   

Net interest expense (1)

     8,738        8,812        35,440        36,391   

Cash paid for income taxes

     348        78        1,225        966   

Capital expenditures (2)

     1,972        1,592        7,846        7,400   

Cash dividend

     5,102        —          5,102        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Free cash flow (1)

     (1,817     6,215        5,862        18,878   

Capital expenditures (2)

     1,972        1,592        7,846        7,400   

Cash dividend

     5,102        —          5,102        —     

Non-cash interest (expense) income relating to amortization of debt finance costs and interest rate swap agreements

     (565     (445     (2,207     12,222   

Non-cash income tax (expense) benefit

     (1,121     8,556        (4,565     4,342   

Gain (loss) on debt extinguishment

     (423     —          (423     (987

Amortization of syndication contracts

     (185     (319     (1,482     (1,159

Payments on syndication contracts

     470        583        1,976        2,724   

Other income (loss)

     —          —          687        —     

Non-cash stock-based compensation included in direct operating expenses

     (74     (142     (229     (454

Non-cash stock-based compensation included in selling, general and administrative expenses

     (340     (455     (812     (897

Non-cash stock-based compensation included in corporate expenses

     (570     (770     (1,302     (1,619

Depreciation and amortization

     (4,481     (4,765     (18,653     (19,229

Impairment charge

     —          (36,109     —          (36,109

Reserve for note receivable

     —          (3,018     —          (3,018

Equity in net income (loss) of nonconsolidated affiliates

     —          (196     —          (180
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ (2,032   $ (29,273   $ (8,200   $ (18,086
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) Consolidated adjusted EBITDA, net interest expense and free cash flow are defined on page 1.
(2) Capital expenditures is not part of the consolidated statement of operations.