2018 Form 10-K Financial Statement

#000156459019016139 Filed on May 07, 2019

View on sec.gov

Income Statement

Concept 2018 2017 Q4 2017 Q3
Revenue $297.8M $73.46M $334.6M
YoY Change -44.44% 4.51% 412.48%
Cost Of Revenue $170.3M $44.80M $22.04M
YoY Change 3.46% 39.56% -27.73%
Gross Profit $127.5M $28.60M $312.5M
YoY Change -65.67% -25.13% 798.03%
Gross Profit Margin 42.81% 38.93% 93.41%
Selling, General & Admin $51.54M $21.30M $12.81M
YoY Change 4.93% 7.04% 7.23%
% of Gross Profit 40.42% 74.48% 4.1%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $10.10M $3.900M $4.400M
YoY Change -3.81% 8.33% 15.79%
% of Gross Profit 7.92% 13.64% 1.41%
Operating Expenses $264.2M $25.00M $77.57M
YoY Change 2.35% 6.38% 49.16%
Operating Profit $33.58M $3.600M $257.0M
YoY Change -87.92% -75.51% 1836.13%
Interest Expense $15.74M -$5.400M $3.756M
YoY Change -5.78% 45.95% -3.54%
% of Operating Profit 46.89% -150.0% 1.46%
Other Income/Expense, Net
YoY Change
Pretax Income $21.41M -$5.100M $253.5M
YoY Change -91.72% -147.66% 2582.35%
Income Tax $7.900M -$300.0K $96.17M
% Of Pretax Income 36.9% 37.94%
Net Earnings $12.16M $12.74M $157.0M
YoY Change -93.08% 81.92% 2799.61%
Net Earnings / Revenue 4.08% 17.34% 46.93%
Basic Earnings Per Share $0.14 $0.14 $1.73
Diluted Earnings Per Share $0.13 $0.14 $1.70
COMMON SHARES
Basic Shares Outstanding 89.12M 90.52M
Diluted Shares Outstanding 90.33M 92.16M

Balance Sheet

Concept 2018 2017 Q4 2017 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $179.2M $39.60M $56.00M
YoY Change 352.53% -35.61% -20.34%
Cash & Equivalents $46.70M $39.56M $287.1M
Short-Term Investments $132.4M $0.00
Other Short-Term Assets $12.60M $228.6M $237.7M
YoY Change -94.49% 4565.31% 3501.52%
Inventory
Prepaid Expenses
Receivables $79.30M $84.35M $72.70M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $271.0M $352.5M $366.3M
YoY Change -23.12% 168.03% 163.15%
LONG-TERM ASSETS
Property, Plant & Equipment $64.90M $60.34M $56.60M
YoY Change 7.63% 8.91% 1.62%
Goodwill $70.73M
YoY Change 41.23%
Intangibles $277.9M
YoY Change 18.86%
Long-Term Investments
YoY Change
Other Assets $2.900M $4.690M $5.500M
YoY Change -38.3% -90.06% -89.28%
Total Long-Term Assets $419.4M $413.7M $399.7M
YoY Change 1.4% 7.05% 1.98%
TOTAL ASSETS
Total Short-Term Assets $271.0M $352.5M $366.3M
Total Long-Term Assets $419.4M $413.7M $399.7M
Total Assets $690.4M $766.1M $766.0M
YoY Change -9.88% 47.93% 44.22%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $14.70M $23.70M $49.10M
YoY Change -37.97% 288.52% 72.89%
Accrued Expenses $15.20M
YoY Change -7.32%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $3.000M $3.000M $3.800M
YoY Change 0.0% -21.05% 0.0%
Total Short-Term Liabilities $54.00M $64.85M $52.90M
YoY Change -16.67% 87.42% 64.29%
LONG-TERM LIABILITIES
Long-Term Debt $240.5M $292.5M $284.0M
YoY Change -17.78% 2.02% -7.58%
Other Long-Term Liabilities $16.40M $19.89M $26.10M
YoY Change -17.59% 50.67% 77.55%
Total Long-Term Liabilities $256.9M $312.4M $310.1M
YoY Change -17.77% 4.16% -3.7%
TOTAL LIABILITIES
Total Short-Term Liabilities $54.00M $64.85M $52.90M
Total Long-Term Liabilities $256.9M $312.4M $310.1M
Total Liabilities $357.7M $417.9M $422.7M
YoY Change -14.41% 24.92% 19.34%
SHAREHOLDERS EQUITY
Retained Earnings -$540.3M
YoY Change
Common Stock $888.7M
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $332.7M $348.3M $341.8M
YoY Change
Total Liabilities & Shareholders Equity $690.4M $766.1M $764.4M
YoY Change -9.88% 47.93% 43.93%

Cashflow Statement

Concept 2018 2017 Q4 2017 Q3
OPERATING ACTIVITIES
Net Income $12.16M $12.74M $157.0M
YoY Change -93.08% 81.92% 2799.61%
Depreciation, Depletion And Amortization $10.10M $3.900M $4.400M
YoY Change -3.81% 8.33% 15.79%
Cash From Operating Activities $33.80M $8.000M $270.2M
YoY Change -88.79% -56.52% 1763.45%
INVESTING ACTIVITIES
Capital Expenditures $17.01M -$2.500M -$34.90M
YoY Change 40.8% 19.05% -1594.01%
Acquisitions $3.522M
YoY Change -87.92%
Other Investing Activities -$139.4M -$20.80M -$1.000M
YoY Change 339.75% 10300.0% -103.37%
Cash From Investing Activities -$159.5M -$23.20M -$36.00M
YoY Change 108.82% 866.67% -230.91%
FINANCING ACTIVITIES
Cash Dividend Paid $17.78M
YoY Change 21.21%
Common Stock Issuance & Retirement, Net $13.81M
YoY Change 159.14%
Debt Paid & Issued, Net $53.00M
YoY Change -81.95%
Cash From Financing Activities -88.63M -10.00M -7.800M
YoY Change 257.44% -59.68% 151.61%
NET CHANGE
Cash From Operating Activities 33.80M 8.000M 270.2M
Cash From Investing Activities -159.5M -23.20M -36.00M
Cash From Financing Activities -88.63M -10.00M -7.800M
Net Change In Cash -214.4M -25.20M 226.4M
YoY Change -207.02% 186.36% 482.01%
FREE CASH FLOW
Cash From Operating Activities $33.80M $8.000M $270.2M
Capital Expenditures $17.01M -$2.500M -$34.90M
Free Cash Flow $16.79M $10.50M $305.1M
YoY Change -94.2% -48.78% 2408.22%

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IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
5581000
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-439000
CY2018 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
-9727000
CY2017 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
2825000
CY2016 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
1203000
CY2018 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
33796000
CY2017 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
301520000
CY2016 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
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ProceedsFromSaleOfProductiveAssets
33000
CY2017 us-gaap Proceeds From Sale Of Productive Assets
ProceedsFromSaleOfProductiveAssets
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PaymentsToAcquirePropertyPlantAndEquipment
17006000
CY2017 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
12078000
CY2016 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
9053000
CY2018 us-gaap Payments To Acquire Intangible Assets
PaymentsToAcquireIntangibleAssets
3153000
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PaymentsToAcquireIntangibleAssets
32588000
CY2018 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
3522000
CY2017 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
29149000
CY2018 us-gaap Payments To Acquire Marketable Securities
PaymentsToAcquireMarketableSecurities
159403000
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25000000
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30000000
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ProceedsFromMaturitiesPrepaymentsAndCallsOfShorttermInvestments
30000000
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1495000
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2450000
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500000
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190000
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-159546000
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708000
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780000
CY2018 us-gaap Payments Related To Tax Withholding For Share Based Compensation
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2268000
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PaymentsRelatedToTaxWithholdingForShareBasedCompensation
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293563000
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23750000
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17782000
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14670000
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13812000
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5330000
CY2018 evc Payment Of Contingent Consideration
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2015000
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PaymentOfContingentConsideration
3819000
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2441000
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CY2018 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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-11000
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EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
14000
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-214389000
CY2017 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
13596000
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CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
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CY2018Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
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CY2018 us-gaap Interest Paid Net
InterestPaidNet
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InterestPaidNet
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InterestPaidNet
14693000
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IncomeTaxesPaidNet
3265000
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IncomeTaxesPaidNet
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CY2017 us-gaap Capital Expenditures Incurred But Not Yet Paid
CapitalExpendituresIncurredButNotYetPaid
1678000
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CapitalExpendituresIncurredButNotYetPaid
1068000
CY2018 evc Business Combination Contingent Consideration Liability Assumed
BusinessCombinationContingentConsiderationLiabilityAssumed
8119000
CY2017 evc Business Combination Contingent Consideration Liability Assumed
BusinessCombinationContingentConsiderationLiabilityAssumed
12107000
CY2018 us-gaap Nature Of Operations
NatureOfOperations
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-size:10pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">1. NATURE OF BUSINESS </p> <p style="margin-bottom:0pt;margin-top:6pt;margin-left:2.27%;text-indent:0%;font-weight:bold;font-style:italic;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;">Nature of Business </p> <p style="margin-bottom:0pt;margin-top:6pt;text-indent:4.54%;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Entravision Communications Corporation (together with its subsidiaries, hereinafter referred to collectively as the &#8220;Company&#8221;) is a leading global media company that, through its television and radio segments, reaches and engages U.S. Hispanics<font style="Background-color:#FFFFFF;color:#000000;"> across acculturation levels and media channels. Additionally, the Company&#8217;s digital segment, located primarily in Spain, Mexico, Argentina and other countries in Latin America, reaches a global market.</font> Entravision&#8217;s operations encompass integrated marketing and media solutions, comprised of television, radio, and digital properties and data analytics services. The Company&#8217;s management has determined that the Company operates in three reportable segments as of December&#160;31, 2018, based upon the type of advertising medium, which segments are television broadcasting, radio broadcasting, and digital media. As of December&#160;31, 2018, the Company owns and/or operates 55 primary television stations located primarily in California, Colorado, Connecticut, Florida, Kansas, Massachusetts, Nevada, New Mexico, Texas and Washington, D.C. The Company&#8217;s television operations comprise the largest affiliate group of both the top-ranked primary television network of Univision Communications Inc. (&#8220;Univision&#8221;) and Univision&#8217;s UniM&#225;s network. The television broadcasting segment includes revenue generated from advertising, retransmission consent agreements and the monetization of the Company&#8217;s spectrum assets. Radio operations consist of 49 operational radio stations, 38 FM and 11 AM, in 16 markets located in Arizona, California, Colorado, Florida, Nevada, New Mexico and Texas. Entravision also operates Entravision Solutions as its national sales representation division, through which it sells advertisements and syndicate radio programming to more than 100 markets across the United States. The Company operates a proprietary technology and data platform that delivers digital advertising in various advertising formats that allows advertisers to reach audiences across a wide range of Internet-connected devices on its owned and operated digital media sites; the digital media sites of its publisher partners; and on other digital media sites it can access through third-party platforms and exchanges.</p> <p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:9pt;">&nbsp;</p>
CY2018 us-gaap Use Of Estimates
UseOfEstimates
<p style="margin-bottom:0pt;margin-top:18pt;margin-left:2.27%;text-indent:0%;font-weight:bold;font-style:italic;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;">Use of Estimates </p> <p style="margin-bottom:0pt;margin-top:6pt;text-indent:4.54%;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The preparation of financial statements requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. </p> <p style="margin-bottom:0pt;margin-top:12pt;text-indent:4.54%;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company&#8217;s operations are affected by numerous factors, including changes in audience acceptance (i.e. ratings), priorities of advertisers, new laws and governmental regulations and policies and technological advances. The Company cannot predict if any of these factors might have a significant impact on the television, radio, and digital advertising industries in the future, nor can it predict what impact, if any, the occurrence of these or other events might have on the Company&#8217;s operations and cash flows. Significant estimates and assumptions made by management are used for, but not limited to, the allowance for doubtful accounts, stock-based compensation, the estimated useful lives of long-lived and intangible assets, the recoverability of such assets by their estimated future undiscounted cash flows, the fair value of reporting units and indefinite life intangible assets, fair values of derivative instruments, disclosure of the fair value of debt, deferred income taxes and the purchase price allocations used in the Company&#8217;s acquisitions. </p>
CY2018 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<p style="margin-bottom:0pt;margin-top:18pt;margin-left:2.27%;text-indent:0%;font-weight:bold;font-style:italic;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;">Concentrations of Credit Risk and Trade Receivables </p> <p style="margin-bottom:0pt;margin-top:6pt;text-indent:4.54%;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company&#8217;s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents and trade accounts receivable. The Company from time to time may have bank deposits in excess of the FDIC insurance limits. As of December&#160;31, 2018, substantially all deposits are maintained in one financial institution. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents. </p> <p style="margin-bottom:0pt;margin-top:12pt;text-indent:4.54%;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company routinely assesses the financial strength of its customers and, as a consequence, believes that its trade receivable credit risk exposure is limited. Trade receivables are carried at original invoice amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis. A valuation allowance is provided for known and anticipated credit losses, as determined by management in the course of regularly evaluating individual customer receivables. This evaluation takes into consideration of a customer&#8217;s financial condition and credit history, as well as current economic conditions. Trade receivables are written off when deemed uncollectible. Recoveries of trade receivables previously written off are recorded when received. No interest is charged on customer accounts. </p> <p style="margin-bottom:0pt;margin-top:12pt;text-indent:4.54%;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Estimated losses for bad debts are provided for in the consolidated financial statements through a charge to expense that aggregated $1.8 million, $1.1 million and $0.8 million for the years ended December&#160;31, 2018, 2017 and 2016, respectively. The net charge off of bad debts aggregated $1.2 million, $1.1 million and $1.4 million for the years ended December&#160;31, 2018, 2017 and 2016, respectively. </p>
CY2018 us-gaap Number Of Reportable Segments
NumberOfReportableSegments
3
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ProvisionForDoubtfulAccounts
1800000
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ProvisionForDoubtfulAccounts
1100000
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ProvisionForDoubtfulAccounts
800000
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AllowanceForDoubtfulAccountsReceivableWriteOffs
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ContractWithCustomerLiability
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300000000
CY2018 evc Percentage Of Tax Benefit Recognized
PercentageOfTaxBenefitRecognized
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AdvertisingExpense
100000
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AdvertisingExpense
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AdvertisingExpense
400000
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BroadcastTradeCost
700000
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BroadcastTradeCost
900000
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BroadcastTradeCost
500000
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IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
629933
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906519
CY2016 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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1373733
CY2018 evc Incremental Common Shares Attributable To Share Based Payment Arrangements Restricted Stock Units
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582653
CY2017 evc Incremental Common Shares Attributable To Share Based Payment Arrangements Restricted Stock Units
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713181
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588734
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182847
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AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
243234
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698344
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0.35
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EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
0.21
CY2017 evc Tax Cuts And Jobs Act Of2017 Incomplete Accounting Provisional Income Tax Expense Benefit
TaxCutsAndJobsActOf2017IncompleteAccountingProvisionalIncomeTaxExpenseBenefit
17300000
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32600000
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2957000
CY2018 evc Increase In Contract With Customer Liability
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2759000
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50081000
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20648000
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3563000
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114390000
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277921000
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6100000
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5900000
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3500000
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2500000
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CY2018Q4 evc Property Plant And Equipment Excluding Land Gross
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230900000
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Land
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6700000
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CY2018Q4 evc Accrued National Representation Fees
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800000
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300000
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400000
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3300000
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3100000
CY2018Q4 evc Amounts Due Under Joint Sales Agreements
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296300000
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3000000
CY2018Q4 us-gaap Long Term Debt Maturities Repayments Of Principal After Year Five
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231200000
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2300000
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CY2018 us-gaap Current State And Local Tax Expense Benefit
CurrentStateAndLocalTaxExpenseBenefit
500000
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CurrentStateAndLocalTaxExpenseBenefit
600000
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500000
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2200000
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CurrentIncomeTaxExpenseBenefit
700000
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600000
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5000000
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-0.80
CY2017 evc Percentage Change In Operating Profit Loss
PercentageChangeInOperatingProfitLoss
3.17
CY2018 evc Percentage Change In Foreign Currency Exchange Gain Loss
PercentageChangeInForeignCurrencyExchangeGainLoss
-3.62
CY2018 evc Percentage Change In Expenses
PercentageChangeInExpenses
-0.04
CY2018 evc Percentage Change In Other Operating Gain Loss
PercentageChangeInOtherOperatingGainLoss
3.53
CY2018 evc Percentage Change In Operating Income Loss
PercentageChangeInOperatingIncomeLoss
-0.88
CY2017 evc Percentage Change In Operating Income Loss
PercentageChangeInOperatingIncomeLoss
4.69
CY2018Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
66838000
CY2018Q2 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
74329000
CY2018Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
74575000
CY2018Q4 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
82073000
CY2018Q1 us-gaap Net Income Loss
NetIncomeLoss
-1807000
CY2018Q2 us-gaap Net Income Loss
NetIncomeLoss
4840000
CY2018Q3 us-gaap Net Income Loss
NetIncomeLoss
2215000
CY2018Q4 us-gaap Net Income Loss
NetIncomeLoss
6913000
CY2018Q1 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.02
CY2018Q2 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.05
CY2018Q3 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.02
CY2018Q4 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.08
CY2018Q1 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.02
CY2018Q2 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.05
CY2018Q3 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.02
CY2018Q4 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.08
CY2017Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
57510000
CY2017Q2 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
70509000
CY2017Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
334555000
CY2017Q4 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
73460000
CY2017Q1 us-gaap Net Income Loss
NetIncomeLoss
2618000
CY2017Q2 us-gaap Net Income Loss
NetIncomeLoss
3326000
CY2017Q3 us-gaap Net Income Loss
NetIncomeLoss
157014000
CY2017Q4 us-gaap Net Income Loss
NetIncomeLoss
12740000
CY2017Q1 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.03
CY2017Q2 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.04
CY2017Q3 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
1.73
CY2017Q4 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.14
CY2017Q1 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.03
CY2017Q2 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.04
CY2017Q3 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
1.70
CY2017Q4 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.14

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