Entravision communications corporation reports third quarter 2022 results
Santa monica, calif.--(business wire)--entravision communications corporation (nyse: evc), a leading global advertising solutions, media and technology company, today announced financial results for the three- and nine-month periods ended september 30, 2022. third quarter 2022 highlights record third quarter advertising revenue net revenue up 21% over the prior-year quarter net income attributable to common stockholders down 23% over the prior-year quarter consolidated adjusted ebitda up 12% over the prior-year quarter operating cash flow up 62% over the prior-year quarter free cash flow down 31% over the prior-year quarter quarterly cash dividend of $0.025 per share “entravision continued to see progress in the third quarter of 2022, with revenue up 21% versus the prior-year period. adjusted ebitda also improved double-digits, increasing 12% year-over-year,” said walter ulloa, chairman and chief executive officer. “entravision’s strength throughout the quarter was again driven by our digital segment, where revenue improved 29% versus the third quarter of 2021. in our television and audio businesses, political ad spend, in particular, continued to perform strongly." mr. ulloa continued, “entravision’s solid performance in the third quarter, together with our progress year-to-date, demonstrates the resiliency and growth of our business in a tough macro environment. we continue to strategically expand across the globe and now have operations in 40 countries across five continents in service of more than 7,000 clients. we are thoughtfully positioning our digital teams in emerging economies where entravision’s unique offerings have a key first-mover advantage and where a critical mass of connected consumers exists alongside a growing advertising industry. we remain optimistic in finding multiple growth opportunities around the world for our digital business and look forward to sharing our progress as we continue to grow and expand globally." quarterly cash dividend the company announced today that its board of directors approved a quarterly cash dividend to shareholders of $0.025 per share on the company's class a, class b and class u common stock, in an aggregate amount of approximately $2.1 million. the quarterly dividend will be payable on december 30, 2022 to shareholders of record as of the close of business on december 15, 2022, and the common stock will trade ex-dividend on december 14, 2022. the company currently anticipates that future cash dividends will be paid on a quarterly basis; however, any decision to pay future cash dividends will be subject to approval by the board. non-gaap financial measures 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 10. unaudited financial highlights (in thousands, except share and per share data) three-month period nine-month period ended september 30, ended september 30, 2022 2021 % change 2022 2021 % change net revenue $ 241,014 $ 199,008 21 % $ 659,881 $ 526,298 25 % cost of revenue - digital (1) 157,095 124,332 26 % 431,951 318,118 36 % operating expenses (2) 49,294 43,113 14 % 140,527 124,969 12 % corporate expenses (3) 9,525 7,253 31 % 26,769 21,756 23 % foreign currency (gain) loss 1,966 177 * 2,112 454 365 % consolidated adjusted ebitda (4) 25,972 23,195 12 % 66,566 55,177 21 % free cash flow (5) $ 15,443 $ 22,382 (31 )% $ 44,026 $ 47,831 (8 )% net income (loss) $ 9,090 $ 13,884 (35 )% $ 19,444 $ 31,362 (38 )% net (income) loss attributable to redeemable noncontrolling interest $ - $ (1,753 ) (100 )% $ - $ (5,938 ) (100 )% net (income) loss attributable to noncontrolling interest $ 303 $ - * $ 303 $ - * net income (loss) attributable to common stockholders $ 9,393 $ 12,131 (23 )% $ 19,747 $ 25,424 (22 )% net income (loss) per share attributable to common stockholders, basic $ 0.11 $ 0.14 (21 )% $ 0.23 $ 0.30 (23 )% net income (loss) per share attributable to common stockholders, diluted $ 0.11 $ 0.14 (21 )% $ 0.23 $ 0.29 (21 )% weighted average common shares outstanding, basic 84,945,873 85,390,333 85,469,675 85,207,992 weighted average common shares outstanding, diluted 87,417,501 88,315,732 87,671,726 87,694,395 (1) consists primarily of the costs of online media acquired from third-party publishers. media cost is classified as cost of revenue in the period in which the corresponding revenue is recognized. (2) operating expenses include direct operating and selling, general and administrative expenses. included in operating expenses are $1.0 million and $0.3 million of non-cash stock-based compensation for the three-month periods ended september 30, 2022 and 2021, respectively, and $2.9 million and $1.0 million of non-cash stock-based compensation for the nine-month periods ended september 30, 2022 and 2021, respectively. (3) corporate expenses include $1.8 million and $0.8 million of non-cash stock-based compensation for the three-month periods ended september 30, 2022 and 2021, respectively, and $5.1 million and $2.3 million of non-cash stock-based compensation for the nine-month periods ended september 30, 2022 and 2021, respectively. (4) 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 operating gain (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from the federal communications commission, or fcc, spectrum incentive auction less related expenses, expenses associated with investments, ebitda attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings. we use the term consolidated adjusted ebitda because that measure is defined in the agreement governing our current credit facility (“the 2017 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, syndication programming amortization less syndication programming payments, revenue from fcc spectrum incentive auction less related expenses, expenses associated with investments, ebitda attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings. (5) free cash flow is defined as consolidated adjusted ebitda less cash paid for income taxes, net interest expense, capital expenditures and non-recurring cash expenses plus dividend income, and other operating gain (loss). net interest expense is defined as interest expense, less non-cash interest expense relating to amortization of debt finance costs, and less interest income. unaudited financial results (in thousands) three-month period ended september 30, 2022 2021 % change net revenue $ 241,014 $ 199,008 21 % cost of revenue - digital (1) 157,095 124,332 26 % operating expenses (1) 49,294 43,113 14 % corporate expenses (1) 9,525 7,253 31 % depreciation and amortization 6,554 5,901 11 % change in fair value of contingent consideration 734 - * impairment charge - 166 (100 )% foreign currency (gain) loss 1,966 177 * other operating (gain) loss (58 ) (2,431 ) (98 )% operating income (loss) 15,904 20,497 (22 )% interest expense, net (2,267 ) (1,702 ) 33 % dividend income 6 207 (97 )% realized gain (loss) on marketable securities (473 ) - * income (loss) before income taxes 13,170 19,002 (31 )% income tax benefit (expense) (4,080 ) (5,118 ) (20 )% net income (loss) 9,090 13,884 (35 )% net (income) loss attributable to redeemable noncontrolling interest - (1,753 ) (100 )% net (income) loss attributable to noncontrolling interest 303 - * net income (loss) attributable to common stockholders $ 9,393 $ 12,131 (23 )% (1) cost of revenue, operating expenses and corporate expenses are defined on page 2. net revenue in the third quarter of 2022 totaled $241.0 million, up 21% from $199.0 million in the prior-year period. of the overall increase, approximately $42.8 million was attributable to our digital segment and was primarily due to advertising revenue growth from our digital commercial partnerships business, and due to our investment in a variable interest entity during the third quarter of 2022 and our acquisition of 365 digital during the fourth quarter of 2021, neither of which contributed to net revenue in the comparable period ended september 30, 2021. in addition, of the overall increase, approximately $0.1 million was attributable to our audio segment, primarily due to increases in political advertising revenue and local advertising revenue, partially offset by a decrease in national advertising revenue. the overall increase was partially offset by a decrease of approximately $0.8 million attributable to our television segment, primarily due to decreases in local and national advertising revenue, and a decrease in retransmission consent revenue. these decreases were mainly attributed to the expiration of our univision and unimÁs network affiliation agreements in orlando, tampa and washington, d.c. on december 31, 2021. the decrease in our television segment revenue was partially offset by increases in political advertising revenue and spectrum usage rights revenue. cost of revenue in the third quarter of 2022 totaled $157.1 million, up 26% from $124.3 million in the prior-year period. the increase was primarily due to increased cost of revenue related to advertising revenue growth from our digital commercial partnerships business, and due to our investment in a variable interest entity during the third quarter of 2022 and our acquisition of 365 digital during the fourth quarter of 2021, neither of which incurred cost of revenue for us in the comparable period ended september 30, 2021. operating expenses in the third quarter of 2022 totaled $49.3 million, up 14% from $43.1 million in the prior-year period. of the overall increase, approximately $5.9 million was attributable to our digital segment and was primarily due to an increase in expenses associated with the increase in digital advertising revenue, an increase in salary expense and our investment in a variable interest entity during the third quarter of 2022 and our acquisition of 365 digital during the fourth quarter of 2021, which did not incur operating expenses for us in the comparable period. additionally, of the overall increase in operating expenses, approximately $0.4 million was attributable to our audio segment primarily due to an increase in expenses associated with the increase in local advertising revenue. the overall increase in operating expenses was partially offset by a decrease of approximately $0.1 million that was attributable to our television segment primarily due to a decrease in expenses associated with the decrease in local and national advertising revenue, partially offset by an increase in rent expense and an increase in bad debt expense. corporate expenses in the third quarter of 2022 totaled $9.5 million, up 31% from $7.3 million in the prior-year period. the increase was primarily due to increases in non-cash stock-based compensation and an increase in salaries. unaudited financial results (in thousands) nine-month period ended september 30, 2022 2021 % change net revenue $ 659,881 $ 526,298 25 % cost of revenue - digital (1) 431,951 318,118 36 % operating expenses (1) 140,527 124,969 12 % corporate expenses (1) 26,769 21,756 23 % depreciation and amortization 19,212 16,159 19 % change in fair value of contingent consideration 6,810 - * impairment charge - 1,604 (100 )% foreign currency (gain) loss 2,112 454 365 % other operating (gain) loss (1,011 ) (4,867 ) (79 )% operating income (loss) 33,511 48,105 (30 )% interest expense, net (5,309 ) (5,052 ) 5 % dividend income 20 211 (91 )% realized gain (loss) on marketable securities (473 ) - * income (loss) before income taxes 27,749 43,264 (36 )% income tax benefit (expense) (8,305 ) (11,902 ) (30 )% net income (loss) 19,444 31,362 (38 )% net (income) loss attributable to redeemable noncontrolling interest - (5,938 ) (100 )% net (income) loss attributable to noncontrolling interest 303 - * net income (loss) attributable to common stockholders $ 19,747 $ 25,424 (22 )% cost of revenue, operating expenses and corporate expenses are defined on page 2. net revenue for the nine-month period of 2022 totaled $659.9 million, up 25% from $526.3 million in the prior-year period. of the overall increase, approximately $139.1 million was attributable to our digital segment and was primarily due to advertising revenue growth from our digital commercial partnerships business. in addition, the increase in net revenue in our digital segment was due to our investment in a variable interest entity and our acquisition of 365 digital during the third quarter of 2022 and fourth quarter of 2021, respectively, neither of which contributed to net revenue in the comparable period ended september 30, 2021, and due to our acquisition of mediadonuts during the third of 2021, which only partially contributed to net revenue in the comparable period ended september 30, 2021. additionally, of the overall increase, approximately $2.1 million was attributable to our audio segment, primarily due to increases in political advertising revenue and local advertising revenue, partially offset by a decrease in national advertising revenue. the overall increase was partially offset by a decrease of approximately $7.7 million attributable to our television segment, primarily due to decreases in local and national advertising revenue, and a decrease in retransmission consent revenue. these decreases were mainly attributed to the expiration of our univision and unimÁs network affiliation agreements in orlando, tampa and washington, d.c. on december 31, 2021. the decrease in our television segment revenue was partially offset by increases in political advertising revenue and spectrum usage rights revenue. cost of revenue for the nine-month period of 2022 totaled $432.0 million, up 36% from $318.1 million in the prior-year period. the increase was primarily due to increased cost of revenue related to advertising revenue growth from our digital commercial partnerships business, and due to our investment in a variable interest entity and our acquisition of 365 digital during the third quarter of 2022 and fourth quarter of 2021, respectively, neither of which incurred cost of revenue for us in the comparable period ended september 30, 2021, and due to our acquisition of mediadonuts during the third of 2021, which only partially incurred cost of revenue for us in the comparable period ended september 30, 2021. operating expenses for the nine-month period of 2022 totaled $140.5 million, up 12% from $125.0 million in the prior-year period. of the overall increase, approximately $15.5 million was attributable to our digital segment and was primarily due to an increase in expenses associated with the increase in digital advertising revenue and an increase in salary expense. in addition, the increase in operating expenses in our digital segment was due to our investment in a variable interest entity and our acquisition of 365 digital during the third quarter of 2022 and fourth quarter of 2021, respectively, neither of which incurred operating expenses for us in the comparable period ended september 30, 2021, and due to our acquisition of mediadonuts during the third of 2021, which only partially incurred operating expenses for us in the comparable period ended september 30, 2021. additionally, of the overall increase in operating expenses, approximately $0.6 million was attributable to our audio segment primarily due to an increase in expenses associated with the increase in local advertising revenue. the overall increase in operating expenses was partially offset by a decrease of approximately $0.6 million that was attributable to our television segment primarily due to a decrease in expenses associated with the decrease in local and national advertising revenue, partially offset by an increase in rent expense and bad debt expense. corporate expenses for the nine-month period of 2022 totaled $26.8 million, up 23% from $21.8 million in the prior-year period. the increase was primarily due to increases in non-cash stock-based compensation and an increase in salaries. balance sheet and related metrics cash and marketable securities as of september 30, 2022 totaled approximately $164.8 million. total debt under the company’s credit agreement was $210.0 million. net of $75 million of cash and marketable securities, total leverage as defined in the company’s credit agreement was 1.4 times as of september 30, 2022. net of total cash and marketable securities, total leverage was 0.5 times. unaudited segment results (in thousands) three-month period nine-month period ended september 30, ended september 30, 2022 2021 % change 2022 2021 % change net revenue digital $ 188,877 $ 146,121 29 % $ 516,966 $ 377,826 37 % television 35,678 36,450 (2 )% 98,918 106,598 (7 )% audio 16,459 16,437 0 % 43,997 41,874 5 % total $ 241,014 $ 199,008 21 % $ 659,881 $ 526,298 25 % cost of revenue - digital (1) digital $ 157,095 $ 124,332 26 % $ 431,951 $ 318,118 36 % operating expenses (1) digital 19,080 13,187 45 % 51,577 36,064 43 % television 20,003 20,148 (1 )% 58,969 59,548 (1 )% audio 10,211 9,778 4 % 29,981 29,357 2 % total $ 49,294 $ 43,113 14 % $ 140,527 $ 124,969 12 % corporate expenses (1) $ 9,525 $ 7,253 31 % $ 26,769 $ 21,756 23 % consolidated adjusted ebitda (1) $ 25,972 $ 23,195 12 % $ 66,566 $ 55,177 21 % cost of revenue, operating expenses, corporate expenses, and consolidated adjusted ebitda are defined on page 2. notice of conference call entravision communications corporation will hold a conference call to discuss its third quarter 2022 results on thursday, november 3, 2022 at 4:30 p.m. eastern time. to access the conference call, please dial (844) 836-8739 (u.s.) or (412) 317-5440 (int’l) ten minutes prior to the start time and reference conference id number 10171311. the call will also be available via live webcast on the investor relations portion of the company's website located at www.entravision.com. about entravision communications corporation entravision is a leading global advertising, media and ad-tech solutions company connecting brands to consumers by representing top platforms and publishers. our dynamic portfolio includes digital, television and audio offerings. digital, our largest revenue segment, is comprised of four business units: our digital sales representation business; smadex, our programmatic ad purchasing platform; our branding and mobile performance solutions business; and our digital audio business. through our digital sales representation business, we connect global media companies such as meta, twitter, tiktok and spotify with advertisers in primarily emerging growth markets worldwide. smadex is our mobile-first demand side platform, enabling advertisers to execute performance campaigns using machine learning. we also offer a branding and mobile performance solutions business, which provides managed services to advertisers looking to connect with global consumers, primarily on mobile devices, and our digital audio business provides digital audio advertising solutions for advertisers in the americas. in addition to digital, entravision has 49 television stations and is the largest affiliate group of the univision and unimÁs television networks. entravision also manages 45 primarily spanish-language radio stations that feature nationally recognized, emmy award-winning talent. shares of entravision class a common stock trade on the nyse under ticker: evc. learn more about our offerings at entravision.com or connect with us on linkedin and facebook. forward-looking statements 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. entravision communications corporation consolidated statements of operations (in thousands, except share and per share data) (unaudited) three-month period nine-month period ended september 30, ended september 30, 2022 2021 2022 2021 net revenue $ 241,014 $ 199,008 $ 659,881 $ 526,298 expenses: cost of revenue - digital 157,095 124,332 431,951 318,118 direct operating expenses 30,086 28,583 87,505 83,480 selling, general and administrative expenses 19,208 14,530 53,022 41,489 corporate expenses 9,525 7,253 26,769 21,756 depreciation and amortization 6,554 5,901 19,212 16,159 change in fair value of contingent consideration 734 - 6,810 - impairment charge - 166 - 1,604 foreign currency (gain) loss 1,966 177 2,112 454 other operating (gain) loss (58 ) (2,431 ) (1,011 ) (4,867 ) 225,110 178,511 626,370 478,193 operating income (loss) 15,904 20,497 33,511 48,105 interest expense (3,055 ) (1,714 ) (7,225 ) (5,287 ) interest income 788 12 1,916 235 dividend income 6 207 20 211 realized gain (loss) on marketable securities (473 ) - (473 ) - income (loss) before income taxes 13,170 19,002 27,749 43,264 income tax benefit (expense) (4,080 ) (5,118 ) (8,305 ) (11,902 ) net income (loss) 9,090 13,884 19,444 31,362 net (income) loss attributable to redeemable noncontrolling interest - (1,753 ) - (5,938 ) net (income) loss attributable to noncontrolling interest 303 - 303 - net income (loss) attributable to common stockholders $ 9,393 $ 12,131 $ 19,747 $ 25,424 basic and diluted earnings per share: net income (loss) per share attributable to common stockholders, basic $ 0.11 $ 0.14 $ 0.23 $ 0.30 net income (loss) per share attributable to common stockholders, diluted $ 0.11 $ 0.14 $ 0.23 $ 0.29 cash dividends declared per common share, basic and diluted $ 0.03 $ 0.03 $ 0.08 $ 0.08 weighted average common shares outstanding, basic 84,945,873 85,390,333 85,469,675 85,207,992 weighted average common shares outstanding, diluted 87,417,501 88,315,732 87,671,726 87,694,395 entravision communications corporation consolidated balance sheets (in thousands; unaudited) september 30, december 31, 2022 2021 assets current assets cash and cash equivalents $ 121,589 $ 185,094 marketable securities 43,212 - restricted cash 751 749 trade receivables, net of allowance for doubtful accounts 194,291 201,747 assets held for sale - 1,963 prepaid expenses and other current assets 42,517 18,925 total current assets 402,360 408,478 property and equipment, net 61,649 62,498 intangible assets subject to amortization, net 64,704 64,034 intangible assets not subject to amortization 209,053 209,053 goodwill 86,715 71,708 deferred income taxes 1,462 1,462 operating leases right of use asset 42,027 25,582 other assets 8,487 8,527 total assets $ 876,457 $ 851,342 liabilities and stockholders' equity current liabilities current maturities of long-term debt $ 5,060 $ 4,903 accounts payable and accrued expenses 240,994 212,655 operating lease liabilities 5,406 7,304 total current liabilities 251,460 224,862 long-term debt, less current maturities, net of unamortized debt issuance costs 207,817 207,416 long-term operating lease liabilities 39,363 20,988 other long-term liabilities 29,283 72,930 deferred income taxes 70,064 68,220 total liabilities 597,987 594,416 stockholders' equity class a common stock 6 6 class b common stock 2 2 class u common stock 1 1 additional paid-in capital 770,639 780,388 accumulated deficit (502,747 ) (522,494 ) accumulated other comprehensive income (loss) (2,025 ) (977 ) total stockholders' equity 265,876 256,926 noncontrolling interest 12,594 - total equity 278,470 256,926 total liabilities and equity $ 876,457 $ 851,342 entravision communications corporation consolidated statements of cash flows (in thousands; unaudited) three-month period nine-month period ended september 30, ended september 30, 2022 2021 2022 2021 cash flows from operating activities: net income (loss) $ 9,090 $ 13,884 $ 19,444 $ 31,362 adjustments to reconcile net income (loss) to net cash provided by operating activities: depreciation and amortization 6,554 5,901 19,212 16,159 impairment charge - 166 - 1,604 deferred income taxes 62 4,649 (3,151 ) 8,348 non-cash interest 365 153 1,076 451 amortization of syndication contracts 117 119 348 357 payments on syndication contracts (70 ) (115 ) (304 ) (354 ) non-cash stock-based compensation 2,786 1,094 7,995 3,300 (gain) loss on marketable securities 473 - 473 - (gain) loss on disposal of property and equipment 39 (2,622 ) (599 ) (2,622 ) change in fair value of contingent consideration 734 - 6,810 - changes in assets and liabilities: (increase) decrease in accounts receivable 4,708 (16,361 ) 22,296 (15,894 ) (increase) decrease in prepaid expenses and other assets 1,069 (642 ) (183 ) 2,267 increase (decrease) in accounts payable, accrued expenses and other liabilities (10,691 ) 3,169 4,725 8,802 net cash provided by operating activities 15,236 9,395 78,142 53,780 cash flows from investing activities: proceeds from sale of property and equipment and intangibles - 9,431 2,671 9,431 purchases of property and equipment (4,673 ) (1,433 ) (7,882 ) (4,269 ) purchase of a businesses, net of cash acquired - (12,847 ) - (12,847 ) investment in variable interest entities, net of cash consolidated (5,164 ) - (5,164 ) - purchases of marketable securities (5,241 ) - (92,480 ) - proceeds from marketable securities 36,369 10,000 46,868 27,800 purchases of investments - (800 ) - (800 ) net cash provided by (used in) investing activities 21,291 4,351 (55,987 ) 19,315 cash flows from financing activities: proceeds from stock option exercises - 242 218 414 tax payments related to shares withheld for share-based compensation plans - (70 ) (267 ) (528 ) payments on long-term debt (1,001 ) (750 ) (2,501 ) (2,250 ) dividends paid (2,124 ) (2,136 ) (6,415 ) (6,395 ) repurchase of class a common stock - - (11,280 ) - payment of contingent consideration (21,734 ) - (65,340 ) - principal payments under finance lease obligation (33 ) - (72 ) - payments of capitalized debt costs - - - (604 ) net cash used in financing activities (24,892 ) (2,714 ) (85,657 ) (9,363 ) effect of exchange rates on cash, cash equivalents and restricted cash 5 (3 ) (1 ) (3 ) net increase (decrease) in cash, cash equivalents and restricted cash 11,640 11,029 (63,503 ) 63,729 cash, cash equivalents and restricted cash: beginning 110,700 172,611 185,843 119,911 ending $ 122,340 $ 183,640 $ 122,340 $ 183,640 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 nine-month period ended september 30, ended september 30, 2022 2021 2022 2021 consolidated adjusted ebitda (1) $ 25,972 $ 23,195 $ 66,566 $ 55,177 ebitda attributable to redeemable noncontrolling interest - 2,036 - 9,127 ebitda attributable to noncontrolling interest (5 ) - (5 ) - interest expense (3,055 ) (1,714 ) (7,225 ) (5,287 ) interest income 788 12 1,916 235 dividend income 6 207 20 211 realized gain (loss) on marketable securities (473 ) - (473 ) - income tax expense (4,080 ) (5,118 ) (8,305 ) (11,902 ) amortization of syndication contracts (117 ) (119 ) (348 ) (357 ) payments on syndication contracts 70 115 304 354 non-cash stock-based compensation included in direct operating expenses (981 ) (321 ) (2,878 ) (971 ) non-cash stock-based compensation included in corporate expenses (1,805 ) (773 ) (5,117 ) (2,329 ) depreciation and amortization (6,554 ) (5,901 ) (19,212 ) (16,159 ) change in fair value of contingent consideration (734 ) - (6,810 ) - impairment charge - (166 ) - (1,604 ) other operating gain (loss) 58 2,431 1,011 4,867 net (income) loss attributable to redeemable noncontrolling interest - (1,753 ) - (5,938 ) net (income) loss attributable to noncontrolling interest 303 - 303 - net income (loss) attributable to common stockholders 9,393 12,131 19,747 25,424 depreciation and amortization 6,554 5,901 19,212 16,159 impairment charge - 166 - 1,604 deferred income taxes 62 4,649 (3,151 ) 8,348 non-cash interest 365 153 1,076 451 amortization of syndication contracts 117 119 348 357 payments on syndication contracts (70 ) (115 ) (304 ) (354 ) non-cash stock-based compensation 2,786 1,094 7,995 3,300 realized (gain) loss on marketable securities 473 - 473 - (gain) loss on disposal of property and equipment 39 (2,622 ) (599 ) (2,622 ) change in fair value of contingent consideration 734 - 6,810 - net income (loss) attributable to redeemable noncontrolling interest - 1,753 - 5,938 net income (loss) attributable to noncontrolling interest (303 ) - (303 ) - changes in assets and liabilities: (increase) decrease in accounts receivable 4,708 (16,361 ) 22,296 (15,894 ) (increase) decrease in prepaid expenses and other assets 1,069 (642 ) (183 ) 2,267 increase (decrease) in accounts payable, accrued expenses and other liabilities (10,691 ) 3,169 4,725 8,802 cash flows from operating activities 15,236 9,395 78,142 53,780 consolidated adjusted ebitda is defined on page 2. entravision communications corporation reconciliation of free cash flow 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 nine-month period ended september 30, ended september 30, 2022 2021 2022 2021 consolidated adjusted ebitda (1) $ 25,972 $ 23,195 $ 66,566 $ 55,177 net interest expense (1) (1,902 ) (1,549 ) (4,233 ) (4,601 ) dividend income 6 207 20 211 cash paid for income taxes (4,018 ) (469 ) (11,456 ) (3,554 ) capital expenditures (2) (4,673 ) (1,433 ) (7,882 ) (4,269 ) other operating gain (loss) 58 2,431 1,011 4,867 free cash flow (1) 15,443 22,382 44,026 47,831 capital expenditures (2) 4,673 1,433 7,882 4,269 ebitda attributable to redeemable noncontrolling interest - 2,036 - 9,127 ebitda attributable to noncontrolling interest (5 ) - (5 ) - (gain) loss on disposal of property and equipment 39 (2,622 ) (599 ) (2,622 ) changes in assets and liabilities: (increase) decrease in accounts receivable 4,708 (16,361 ) 22,296 (15,894 ) (increase) decrease in prepaid expenses and other assets 1,069 (642 ) (183 ) 2,267 increase (decrease) in accounts payable, accrued expenses and other liabilities (10,691 ) 3,169 4,725 8,802 cash flows from operating activities $ 15,236 $ 9,395 $ 78,142 $ 53,780 consolidated adjusted ebitda, net interest expense, and free cash flow are defined on page 2. capital expenditures are not part of the consolidated statement of operations.
