(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Indicate by check mark whether the registrant has submitted electronically ~~and posted on its corporate Web site, if any,~~ every Interactive Data File required to be submitted ~~and posted~~ pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit ~~and post~~ such files).

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. ~~(Check one)~~:

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

As of May ~~4, 2018,~~10, 2019, there were ~~64,544,938~~61,137,147 shares, $0.0001 par value per share, of the registrant’s Class A common stock outstanding, 14,927,613 shares, $0.0001 par value per share, of the registrant’s Class B common stock outstanding and 9,352,729 shares, $0.0001 par value per share, of the registrant’s Class U common stock outstanding.

This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of ~~1934.~~1934, as amended, or the Exchange Act. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including, but not limited to, any projections of earnings, revenue or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements concerning proposed new services or developments; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing.

Forward-looking statements may include the words “may,” “could,” “will,” “estimate,” “intend,” “continue,” “believe,” “expect” or “anticipate” or other similar words. These forward-looking statements present our estimates and assumptions only as of the date of this report. Except for our ongoing obligation to disclose material information as required by the federal securities laws, we do not intend, and undertake no obligation, to update any forward-looking statement.

Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and inherent risks and uncertainties. Some of the key factors impacting these risks and uncertainties include, but are not limited to:

For a detailed description of these and other factors that could cause actual results to differ materially from those expressed in any forward-looking statement, please see the section entitled “Risk Factors,” beginning on page 3033 of our Annual Report on Form 10-K for the year ended December 31, ~~2017.~~2018.

	March 31,			December 31,			March 31,			December 31,
	2018			2017			2019			2018
ASSETS
Current assets
Cash and cash equivalents	$	89,224			39,560		$	52,003			46,733
Marketable securities		157,752			-			122,570			132,424
Restricted cash		769			222,294			732			732
Trade receivables, (including related parties of $4,910 and $4,653) net of allowance for doubtful accounts of $3,013 and $2,566		73,728			84,348
Trade receivables, (including related parties of $4,752 and $4,530) net of allowance for doubtful accounts of $3,285 and $3,395								65,745			79,308
Assets held for sale								1,179			1,179
Prepaid expenses and other current assets (including related parties of $274 and $274)		9,732			6,260			12,006			10,672
Total current assets		331,205			352,462			254,235			271,048
Property and equipment, net of accumulated depreciation of $182,255 and $179,869		60,075			60,337
Intangible assets subject to amortization, net of accumulated amortization of $89,084 and $87,632 (including related parties of $9,248 and $9,555)		25,306			26,758
Property and equipment, net of accumulated depreciation of $185,138 and $187,375								69,455			64,939
Intangible assets subject to amortization, net of accumulated amortization of $95,475 and $93,793 (including related parties of $8,245 and $8,327)								20,916			22,598
Intangible assets not subject to amortization		254,506			251,163			254,598			254,598
Goodwill		70,557			70,557			74,225			74,292
Operating leases right of use asset								44,070			-
Other assets		4,253			4,690			2,689			2,934
Total assets	$	745,902		$	765,967		$	720,188		$	690,409

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of long-term debt	$	3,000		$	3,000		$	3,000		$	3,000
Accounts payable and accrued expenses (including related parties of $2,645 and $2,548)		46,397			57,563
Deferred revenue		1,535			1,959
Accounts payable and accrued expenses (including related parties of $2,102 and $1,948)								44,853			51,034
Operating lease liabilities								10,599			-
Total current liabilities		50,932			62,522			58,452			54,034
Long-term debt, less current maturities, net of unamortized debt issuance costs of $3,637 and $3,761		291,863			292,489
Long-term debt, less current maturities, net of unamortized debt issuance costs of $2,611 and $2,709								239,889			240,541
Long-term operating lease liabilities								40,099			-
Other long-term liabilities		23,420			21,447			10,383			16,418
Deferred income taxes		39,289			40,639			47,635			46,684
Total liabilities		405,504			417,097			396,458			357,677

Commitments and contingencies (note 5)

Stockholders' equity
Class A common stock, $0.0001 par value, 260,000,000 shares authorized; shares issued and outstanding 2018 65,586,094; 2017 66,069,325		7			7
Class B common stock, $0.0001 par value, 40,000,000 shares authorized; shares issued and outstanding 2018 and 2017 14,927,613		2			2
Class U common stock, $0.0001 par value, 40,000,000 shares authorized; shares issued and outstanding 2018 and 2017 9,352,729		1			1
Class A common stock, $0.0001 par value, 260,000,000 shares authorized; shares issued and outstanding 2019 61,137,147; 2018 63,210,531								6			6
Class B common stock, $0.0001 par value, 40,000,000 shares authorized; shares issued and outstanding 2019 and 2018 14,927,613								2			2
Class U common stock, $0.0001 par value, 40,000,000 shares authorized; shares issued and outstanding 2019 and 2018 9,352,729								1			1
Additional paid-in capital		882,935			888,650			851,080			862,299
Accumulated deficit		(541,538	)		(539,730	)		(526,740	)		(528,164	)
Accumulated other comprehensive income (loss)		(1,009	)		(60	)		(619	)		(1,412	)
Total stockholders' equity		340,398			348,870			323,730			332,732
Total liabilities and stockholders' equity	$	745,902		$	765,967		$	720,188		$	690,409

	Three-Month Period						Three-Month Period
	Ended March 31,						Ended March 31,
	2018			2017			2019			2018
Net Revenue	$	66,838		$	57,510		$	64,680		$	66,838

Expenses:
Cost of revenue - digital media		10,625			1,752			7,642			10,625
Direct operating expenses (including related parties of $2,048 and $2,320) (including non-cash stock-based compensation of $216 and $223)		31,033			27,092
Direct operating expenses (including related parties of $1,962 and $2,048) (including non-cash stock-based compensation of $134 and $216)								28,930			31,033
Selling, general and administrative expenses		13,294			11,200			13,814			13,294
Corporate expenses (including non-cash stock-based compensation of $1,033 and $752)		5,975			5,867
Depreciation and amortization (includes direct operating of $2,536 and $2,205; selling, general and administrative of $1,313 and $1,016; and corporate of $90 and $325) (including related parties of $307 and $581)		3,939			3,546
Change in fair value of contingent consideration		2,100			-
Corporate expenses (including non-cash stock-based compensation of $666 and $1,033)								6,894			5,975
Depreciation and amortization (includes direct operating of $2,494 and $2,536; selling, general and administrative of $1,269 and $1,313; and corporate of $153 and $90) (including related parties of $308 and $307)								3,916			3,939
Change in fair value contingent consideration								359			2,100
Foreign currency (gain) loss		213			-			132			213
		67,179			49,457
Other operating (gain) loss								(1,996	)		(22	)
Operating income (loss)		(341	)		8,053			4,989			(319	)
Interest expense		(3,398	)		(3,645	)		(3,490	)		(3,398	)
Interest income		913			109			919			913
Dividend income		128			-			255			128
Other income (loss)		22			-
Income (loss) before income taxes		(2,676	)		4,517			2,673			(2,676	)
Income tax benefit (expense)		930			(1,899	)		(1,093	)		930
Income (loss) before equity in net income (loss) of nonconsolidated affiliate		(1,746	)		2,618			1,580			(1,746	)
Equity in net income (loss) of nonconsolidated affiliate, net of tax		(62	)		-			(156	)		(62	)
Net income (loss)	$	(1,808	)	$	2,618		$	1,424		$	(1,808	)

Basic and diluted earnings per share:
Net income (loss) per share, basic and diluted	$	(0.02	)	$	0.03		$	0.02		$	(0.02	)

Cash dividends declared per common share	$	0.05		$	0.03		$	0.05		$	0.05

Weighted average common shares outstanding, basic		90,319,092			90,236,476			86,101,741			90,319,092
Weighted average common shares outstanding, diluted		90,319,092			91,760,531			87,152,987			90,319,092

	Three-Month Period					Three-Month Period
	Ended March 31,					Ended March 31,
	2018			2017		2019		2018
Net income (loss)	$	(1,808	)	$	2,618	$	1,424	$	(1,808	)
Other comprehensive income (loss), net of tax:
Change in foreign currency translation		290			-		30		290
Change in fair value of available for sale securities		(1,239	)		-		763		(1,239	)
Change in fair value of interest rate swap agreements		-			553
Total other comprehensive income (loss)		(949	)		553		793		(949	)
Comprehensive income (loss)	$	(2,757	)	$	3,171	$	2,217	$	(2,757	)

	Number of Common Shares										Common Stock												Accumulated
								Treasury			Class		Class		Class		Additional Paid-in			Accumulated			Other Comprehensive
	Class A			Class B		Class U		Stock			A		B		U		Capital			Deficit			Income (Loss)			Total
																				Revised						Revised
Balance, December 31, 2018		63,210,531			14,927,613		9,352,729		-			6		2		1		862,299			(528,164	)		(1,412	)		332,732
Issuance of common stock upon exercise of stock options or awards of restricted stock units		-			-		-		-			-		-		-		-			-			-			-
Tax payments related to shares withheld for share-based compensation plans		25,059			-		-		-			-		-		-		(42	)		-			-			(42	)
Stock-based compensation expense		-			-		-		-			-		-		-		800			-			-			800
Class B common stock exchanged for Class A common stock		-			-		-		-			-		-		-		-			-			-			-
Repurchase of Class A common stock		(2,098,443	)		-		-		2,098,443			-		-		-		(7,706	)		-			-			(7,706	)
Retirement of treasury stock		-			-		-		(2,098,443	)		-		-		-		-			-			-			(0	)
Dividends paid		-			-		-		-			-		-		-		(4,271	)		-			-			(4,271	)
Change in fair value of marketable securities		-			-		-		-			-		-		-		-			-			763			763
OCI release due to termination of interest rate swap agreements		-			-		-		-			-		-		-		-			-			-			-
Foreign currency translation gain (loss)		-			-		-		-			-		-		-		-			-			30			30
Net income for the three-month period-ended March 31, 2019		-			-		-		-			-		-		-		-			1,424			-			1,424
Balance, March 31, 2019		61,137,147			14,927,613		9,352,729		-			6		2		1		851,080			(526,740	)		(619	)		323,730

	Number of Common Shares										Class A												Accumulated
								Treasury			Class		Class		Class		Additional Paid-in			Accumulated			Other Comprehensive
	Class A			Class B		Class U		Stock			A		B		U		Capital			Deficit			Income (Loss)			Total
																				Revised						Revised
Balance, December 31, 2017		66,069,325			14,927,613		9,352,729		-			7		2		1		888,650			(540,325	)		(60	)		348,275
Issuance of common stock upon exercise of stock options or awards of restricted stock units		17,356			-		-		-			-		-		-		-			-			-			-
Tax payments related to shares withheld for share-based compensation plans		-			-		-		-			-		-		-		(43	)		-			-			(43	)
Stock-based compensation expense		-			-		-		-			-		-		-		1,249			-			-			1,249
Class B common stock exchanged for Class A common stock		-			-		-		-			-		-		-		-			-			-			-
Repurchase of Class A common stock		(500,587	)		-		-		500,587			-		-		-		(2,402	)		-			-			(2,402	)
Retirement of treasury stock		-			-		-		(500,587	)		-		-		-		-			-			-			(0	)
Dividends paid		-			-		-		-			-		-		-		(4,518	)		-			-			(4,518	)
Change in fair value of marketable securities		-			-		-		-			-		-		-		-			-			(1,239	)		(1,239	)
OCI release due to termination of interest rate swap agreements		-			-		-		-			-		-		-		-			-			-			-
Foreign currency translation gain (loss)		-			-		-		-			-		-		-		-			-			290			290
Net income for the three-month period-ended March 31, 2018		-			-		-		-			-		-		-		-			(1,808	)		-			(1,808	)
Balance, March 31, 2018		65,586,094			14,927,613		9,352,729		-			7		2		1		882,936			(542,133	)		(1,009	)		339,804

	Three-Month Period						Three-Month Period
	Ended March 31,						Ended March 31,
	2018			2017			2019			2018
Cash flows from operating activities:
Net income (loss)	$	(1,808	)	$	2,618		$	1,424		$	(1,808	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		3,939			3,546			3,916			3,939
Deferred income taxes		(1,014	)		1,473			470			(1,014	)
Amortization of debt issue costs		124			183
Non-cash interest								251			124
Amortization of syndication contracts		176			109			124			176
Payments on syndication contracts		(186	)		(113	)		(135	)		(186	)
Equity in net (income) loss of nonconsolidated affiliate		62			-			156			62
Non-cash stock-based compensation		1,249			975			800			1,249
(Gain) loss on disposal of property and equipment								86			-
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		11,043			10,979			13,657			11,043
(Increase) decrease in prepaid expenses and other assets		(3,981	)		(891	)		869			(3,981	)
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(5,977	)		(5,963	)		(7,311	)		(5,977	)
Net cash provided by operating activities		3,627			12,916			14,307			3,627
Cash flows from investing activities:
Purchases of property and equipment		(3,030	)		(1,526	)		(6,072	)		(3,030	)
Purchases of intangible assets		(3,153	)		-			-			(3,153	)
Purchases of marketable securities		(159,403	)		-			-			(159,403	)
Proceeds from marketable securities								10,721			-
Purchases of investments		-			(250	)		(200	)		-
Deposits on acquisition		-			(230	)
Net cash used in investing activities		(165,586	)		(2,006	)		4,449			(165,586	)
Cash flows from financing activities:
Proceeds from stock option exercises		-			311
Tax payments related to shares withheld for share-based compensation plans		(2,227	)		-			(751	)		(2,227	)
Payments on long-term debt		(750	)		(938	)		(750	)		(750	)
Dividends paid		(4,518	)		(2,821	)		(4,271	)		(4,518	)
Repurchase of Class A common stock		(2,402	)		-			(7,706	)		(2,402	)
Net cash used in financing activities		(9,897	)		(3,448	)		(13,478	)		(9,897	)
Effect of exchange rates on cash, cash equivalents and restricted cash		(5	)					(8	)		(5	)
Net increase (decrease) in cash, cash equivalents and restricted cash		(171,861	)		7,462			5,270			(171,861	)
Cash, cash equivalents and restricted cash:
Beginning		261,854			61,520			47,465			261,854
Ending	$	89,993		$	68,982		$	52,735		$	89,993

Supplemental disclosures of cash flow information:
Cash payments for:
Interest	$	3,274		$	3,462		$	3,239		$	3,274
Income taxes	$	84		$	426		$	623		$	84

Supplemental disclosures of non-cash investing and financing activities:
Capital expenditures financed through accounts payable, accrued expenses and other liabilities	$	870		$	786		$	1,460		$	870
Contingent consideration included in accounts payable, accrued expenses and other liabilities	$	18,000		$	-		$	8,478		$	14,181

The consolidated financial statements included herein have been prepared by Entravision Communications Corporation (the “Company”), pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted pursuant to such rules and regulations. These consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, ~~2017~~2018 included in the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2017.~~2018. The unaudited information contained herein has been prepared on the same basis as the Company’s audited consolidated financial statements and, in the opinion of the Company’s management, includes all adjustments (consisting of only normal recurring adjustments) necessary for a fair presentation of the information for the periods presented. The interim results presented herein are not necessarily indicative of the results of operations that may be expected for the full fiscal year ending December 31, ~~2018~~2019 or any other future period.

Certain amounts in the Company’s prior year period consolidated financial statements and notes to the financial statements have been reclassified to conform to current period presentation.

The Company is a leading global media company that, through its television and radio segments, reaches and engages U.S. Hispanics across acculturation levels and media channels. Additionally, the Company’s digital segment, ~~whose operations are~~ located primarily in Spain, Mexico, Argentina and other countries in Latin America, reaches a global market. Entravision’s ~~expansive portfolio encompasses~~operations encompass integrated marketing and media solutions, comprised of television, radio, and digital properties ~~(including~~and data analytics ~~services).~~services. The Company’s management has determined that the Company operates in three reportable segments as of March 31, ~~2018,~~2019, based upon the type of advertising medium, which segments are television broadcasting, radio broadcasting, and ~~digital.~~digital media. As of March 31, ~~2018,~~2019, 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’s television operations comprise the largest affiliate group of both the top-ranked primary television network of Univision Communications Inc. (“Univision”) and Univision’s UniMás network. The television broadcasting segment includes revenue generated from advertising, retransmission consent agreements and the monetization of the Company’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 ~~300 stations~~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.

As of March 31, 2019 and December 31, 2018, the Company’s balance sheet includes ~~$0.8~~$0.7 million in restricted cash, which was deposited into a separate account as temporary collateral for the Company’s letters of credit. As of December 31, 2017, the Company’s balance sheet includes $222.3 million in restricted cash of which $221.5 million relates to proceeds received by the Company for its participation in the FCC auction for broadcast spectrum which were deposited into the account of a qualified intermediary to comply with Internal Revenue Code Section 1031 requirements to execute a like-kind exchange. The remaining $0.8 million in restricted cash was used as temporary collateral for the Company’s letters of credit.

Substantially all of the Company’s stations are Univision- or UniMás-affiliated television stations. The Company’s network affiliation agreements with Univision provide certain of its owned stations the exclusive right to broadcast Univision’s primary network and UniMás network programming in their respective markets. Under the network affiliation agreement, the Company retains the right to sell no less than four minutes per hour of the available advertising time on stations that broadcast Univision network programming, and the right to sell approximately four and a half minutes per hour of the available advertising time on stations that broadcast UniMás network programming, subject to adjustment from time to time by Univision.

Under the network affiliation agreement, Univision acts as the Company’s exclusive third-party sales representative for the sale of certain national advertising on the Company’s Univision- and UniMás-affiliate television stations, and it pays certain sales representation fees to Univision relating to sales of all advertising for broadcast on the Company’s Univision- and UniMás-affiliate television stations. During each of the three-month periods ended March 31, ~~2018~~2019 and ~~2017,~~2018, the amount the Company paid Univision in this capacity was $2.0 ~~million and $2.3 million, respectively.~~million.

The Company also generates revenue under two marketing and sales agreements with Univision, which gives the Company the right to manage the marketing and sales operations of Univision-owned Univision affiliates in six markets – Albuquerque, Boston, Denver, Orlando, Tampa and Washington, D.C.

Under the Company’s proxy agreement with Univision, the Company grants Univision the right to negotiate the terms of retransmission consent agreements for its Univision- and UniMás-affiliated television station signals. Among other things, the proxy agreement provides terms relating to compensation to be paid to the Company by Univision with respect to retransmission consent agreements entered into with multichannel video programming distributors, (“MVPDs”). As of March 31, ~~2018,~~2019, the amount due to the Company from Univision was ~~$4.9~~$4.8 million related to the agreements for the carriage of its Univision and UniMás-affiliated television station signals. During the three-month periods ended March 31, ~~2018~~2019 and ~~2017,~~2018, retransmission consent revenue accounted for approximately ~~$8.9~~$8.8 million and ~~$8.0~~$8.9 million, respectively, of which ~~$7.5~~$6.7 million and ~~$7.3~~$7.5 million, respectively, relate to the Univision proxy agreement. The term of the proxy agreement extends with respect to any MVPD for the length of the term of any retransmission consent agreement in effect before the expiration of the proxy agreement.

Univision currently owns approximately ~~10%~~11% of the Company’s common stock on a fully-converted basis. The Class U common stock held by Univision has limited voting rights and does not include the right to elect directors. As the holder of all of the Company’s issued and outstanding Class U common stock, so long as Univision holds a certain number of shares, the Company will not, without the consent of Univision, merge, consolidate or enter into another business combination, dissolve or liquidate the Company or dispose of any interest in any Federal Communications Commission, or FCC, license for any of its Univision-affiliated television stations, among other things. Each share of Class U common stock is automatically convertible into one share of Class A common stock (subject to adjustment for stock splits, dividends or combinations) in connection with any transfer to a third party that is not an affiliate of Univision.

The Company measures all stock-based awards using a fair value method and recognizes the related stock-based compensation expense in the consolidated financial statements over the requisite service period. As stock-based compensation expense recognized in the Company’s consolidated financial statements is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures.

Stock-based compensation expense related to grants of stock options and restricted stock units was ~~$1.2~~$0.8 million and ~~$1.0~~$1.2 million for the three-month periods ended March 31, ~~2018~~2019 and ~~2017,~~2018, respectively.

Stock-based compensation expense related to stock options is based on the fair value on the date of grant using the Black-Scholes option pricing model and is amortized over the vesting period, generally between 1 to 4 years.

As of March 31, ~~2018,~~2019, there was ~~less than $0.1 million of total unrecognized~~de minimis stock-based compensation expense related to grants of stock options. All grants of stock options ~~that is expected to be recognized over a weighted-average period of 0.8 years.~~have been fully expensed.

Stock-based compensation expense related to restricted stock units is based on the fair value of the Company’s stock price on the date of grant and is amortized over the vesting period, generally between 1 to 4 years.

As of March 31, ~~2018,~~2019, there was approximately ~~$5.7~~$3.4 million of total unrecognized compensation expense related to grants of restricted stock units that is expected to be recognized over a weighted-average period of ~~1.6~~1.5 years.

The following table illustrates the reconciliation of the basic and diluted income (loss) per share computations required by Accounting Standards Codification (ASC) 260-10, “Earnings per Share” (in thousands, except share and per share data):

	Three-Month Period					Three-Month Period
	Ended March 31,					Ended March 31,
	2018			2017		2019		2018
Basic earnings per share:
Numerator:
Net income (loss)	$	(1,808	)	$	2,618	$	1,424	$	(1,808	)

Denominator:
Weighted average common shares outstanding		90,319,092			90,236,476		86,101,741		90,319,092

Per share:
Net income (loss) per share	$	(0.02	)	$	0.03	$	0.02	$	(0.02	)

Diluted earnings per share:
Numerator:
Net income (loss)	$	(1,808	)	$	2,618	$	1,424	$	(1,808	)

Denominator:
Weighted average common shares outstanding		90,319,092			90,236,476		86,101,741		90,319,092
Dilutive securities:
Stock options and restricted stock units		-			1,524,055		1,051,246		-
Diluted shares outstanding		90,319,092			91,760,531		87,152,987		90,319,092

Per share:
Net income (loss) per share	$	(0.02	)	$	0.03	$	0.02	$	(0.02	)

Basic income (loss) per share is computed as net income (loss) divided by the weighted average number of shares outstanding for the period. Diluted income (loss) per share reflects the potential dilution, if any, that could occur from shares issuable through stock options and restricted stock awards.

For the three-month period ended March 31, 2019, a total of 43,534 shares of dilutive securities were not included in the computation of diluted income per share because the exercise prices of the dilutive securities were greater than the average market price of the common shares.

For the three-month period ended March 31, 2018, all dilutive securities have been excluded as their inclusion would have had an antidilutive effect on loss per share. The number of securities whose conversion would result in an incremental number of shares that would be included in determining the weighted average shares outstanding for diluted earnings per share if their effect was not antidilutive was 1,276,642 equivalent shares of dilutive securities for the three-month period ended March 31, 2018.

For the three-month period ended March 31, 2017, a total of 3,177 shares of dilutive securities were not included in the computation of diluted income per share because the exercise prices of the dilutive securities were greater than the average market price of the common shares.

~~Treasury stock is included as a deduction from equity in the Stockholders’ Equity section of the Consolidated Balance Sheets.~~

On July 13, 2017, the Board of Directors approved a share repurchase of up to ~~$15~~$15.0 million of the Company’s outstanding common stock.On April 11, 2018, the Board of Directors approved the repurchase of up to an additional $15.0 million of the Company’s Class A common stock, for a total repurchase authorization of up to $30.0 million. Under the share repurchase program, the Company is authorized to purchase shares from time to time through open market purchases or negotiated purchases, subject to market conditions and other factors. The share repurchase program may be suspended or discontinued at any time without prior notice.

Treasury stock is included as a deduction from equity in the Stockholders’ Equity section of the Consolidated Balance Sheets. Shares repurchased pursuant to the Company’s share repurchase program are retired during the same calendar year.

The Company repurchased ~~0.5~~2.1 million shares of Class A common stock at an average price of ~~$4.78,~~$3.65, for an aggregate purchase price of approximately ~~$2.4~~$7.7 million, during the three-month period ended March 31, ~~2018.~~2019. As of March 31, 2019, the Company has repurchased a total of approximately 6.6 million shares of Class A common stock, for an aggregate purchase price of approximately $26.8 million, or an average price per share of $4.05, since the beginning of the share repurchase program. All such repurchased shares were retired as of March 31, ~~2018.~~2019.

On November 30, 2017 (the “Closing Date”), the Company entered into its 2017 Credit Facility pursuant to the 2017 Credit Agreement. The 2017 Credit Facility consists of a $300.0 million senior secured Term Loan B Facility (the “Term Loan B Facility”), which was drawn in full on the Closing Date. In addition, the 2017 Credit Facility provides that the Company may increase the aggregate principal amount of the 2017 Credit Facility by up to an additional $100.0 million plus the amount that would result in its first lien net leverage ratio (as such term is used in the 2017 Credit Agreement) not exceeding 4.0 to 1.0, subject to the Company satisfying certain conditions.

Borrowings under the Term Loan B Facility were used on the Closing Date to (a) repay in full all of the Company’s and its subsidiaries’ outstanding obligations under the Company’s previous credit facility (“2013 Credit Facility”) and to terminate the ~~agreement governing the~~ 2013 Credit ~~Facility (“2013 Credit Agreement”),~~Agreement, (b) pay fees and expenses in connection with the 2017 Credit Facility, and (c) for general corporate purposes.

The 2017 Credit Facility is guaranteed on a senior secured basis by certain of its existing and future wholly-owned domestic subsidiaries, and is secured on a first priority basis by the Company’s and those subsidiaries’ assets.

The Company’s borrowings under the 2017 Credit Facility bear interest on the outstanding principal amount thereof from the date when made at a rate per annum equal to either: (i) the Eurodollar Rate (as defined in the 2017 Credit Agreement) plus 2.75%; or (ii) the Base Rate (as defined in the 2017 Credit Agreement) plus 1.75%. The Term Loan B Facility expires on November 30, 2024 (the “Maturity Date”).

In the event the Company engages in a transaction that has the effect of reducing the yield of any loans outstanding under the Term Loan B Facility within six months of the Closing Date, the Company will owe 1% of the amount of the loans so repriced or replaced to the Lenders thereof (such fee, the “Repricing Fee”). Other than the Repricing Fee, the amounts outstanding under the 2017 Credit Facility may be prepaid at the Company’s option without premium or penalty, provided that certain limitations are observed, and subject to customary breakage fees in connection with the prepayment of a ~~LIBOR~~Eurodollar rate loan. The principal amount of the Term Loan B Facility shall be paid in installments on the dates and in the respective amounts set forth in the 2017 Credit Agreement, with the final balance due on the Maturity Date.

Subject to certain exceptions, the 2017 Credit Facility contains covenants that limit the ability of the Company and its restricted subsidiaries to, among other things:

The 2017 Credit Facility also provides for certain customary events of default, including the following:

default in payment when due of the principal amount of borrowings under the 2017 Credit Facility;

•

~~default in payment when due of the principal amount of borrowings under the 2017 Credit Facility;~~

failure by the Company or any subsidiary to comply with the negative covenants and certain other covenants relating to maintaining the legal existence of the Company and certain of its restricted subsidiaries and compliance with anti-corruption laws;

failure by the Company or any subsidiary to comply with any of the other agreements in the 2017 Credit Agreement and related loan documents that continues for thirty (30) days (or ten (10) days in the case of failure to comply with covenants related to inspection rights of the administrative agent and lenders and permitted uses of proceeds from borrowings under the 2017 Credit Facility) after the Company’s officers first become aware of such failure or first receive written notice of such failure from any lender;

default in the payment of other indebtedness if the amount of such indebtedness aggregates to $15.0 million or more, or failure to comply with the terms of any agreements related to such indebtedness if the holder or holders of such indebtedness can cause such indebtedness to be declared due and payable;

certain events of bankruptcy or insolvency with respect to the Company or any significant subsidiary;

final judgment is entered against the Company or any restricted subsidiary in an aggregate amount over $15.0 million, and either enforcement proceedings are commenced by any creditor or there is a period of 30 consecutive days during which the judgment remains unpaid and no stay is in effect;

any material provision of any agreement or instrument governing the 2017 Credit Facility ceases to be in full force and effect; and

any revocation, termination, substantial and adverse modification, or refusal by final order to renew, any media license, or the requirement (by final non-appealable order) to sell a television or radio station, where any such event or failure is reasonably expected to have a material adverse effect.

The Term Loan B Facility does not contain any financial covenants. In connection with the Company entering into the 2017 Credit Agreement, the Company and its restricted subsidiaries also entered into a Security Agreement, pursuant to which the Company and the Credit Parties each granted a first priority security interest in the collateral securing the 2017 Credit Facility for the benefit of the lenders under the 2017 Credit Facility.

Additionally, the 2017 Credit Agreement contains a definition of “Consolidated EBITDA” that excludes revenue related to the Company’s participation in the FCC auction for broadcast spectrum and related expenses, as compared to the definition of “Consolidated Adjusted EBITDA” under the 2013 Credit Agreement which included such items.

The carrying amount of the Term Loan B Facility as of March 31, ~~2018~~2019 was $~~294.9~~242.9 million, net of ~~$3.6~~$2.6 million of unamortized debt issuance costs and original issue discount. The estimated fair value of the Term Loan B Facility as of March 31, ~~2018~~2019 was $~~298.9~~235.7 million. The estimated fair value is based on quoted prices in markets where trading occurs infrequently.

~~Derivative Instruments~~

Prior to November 28, 2017, the Company used derivatives in the management of interest rate risk with respect to interest expense on variable rate debt. The Company was party to interest rate swap agreements with financial institutions that fixed the variable benchmark component (LIBOR) of its interest rate on a portion of its term loan beginning December 31, 2015. On November 28, 2017, the Company terminated these swap agreements in conjunction with the refinancing of its debt. The Company’s current policy prohibits entering into derivative instruments for speculation or trading purposes.

The carrying amount of the Company’s interest rate swap agreements were recorded at fair value, including consideration of non-performance risk, when material. The fair value of each interest rate swap agreement was determined by using multiple broker quotes, adjusted for non-performance risk, when material, which estimate the future discounted cash flows of any future payments that may be made under such agreements.

Fair Value Measurements

The Company measures certain financial assets and liabilities at fair value on a recurring basis. Fair value is the price the Company would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date.

ASC 820, “Fair Value Measurements and Disclosures”, defines and establishes a framework for measuring fair value and expands disclosures about fair value measurements. In accordance with ASC 820, the Company has categorized its financial assets and liabilities, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy as set forth below.

Level 1 – Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the company has the ability to access at the measurement date.

Level 2 – Assets and liabilities whose values are based on quoted prices for similar attributes in active markets; quoted prices in markets where trading occurs infrequently; and inputs other than quoted prices that are observable, either directly or indirectly, for substantially the full term of the asset or liability.

Level 3 – Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement.

If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.

The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheets (in millions):

													March 31, 2019
													Total Fair Value
	March 31, 2018												and Carrying
	Total Fair Value and Carrying Value on Balance		Fair Value Measurement Category											Value on Balance				Fair Value Measurement Category
(in millions)	Sheet		Level 1			Level 2				Level 3				Sheet				Level 1			Level 2					Level 3
Assets:
Money market account	$	45.1	$	-		$		45.1		$		-			$	36.7			$	-		$	36.7				$	-
Certificates of deposit	$	8.2	$			$		8.2		$		-		$	7.6			$	-		$	7.6				$	-
Corporate bonds	$	174.5	$	-		$		174.5		$					$	115.0			$	-		$		115.0			$	-

Liabilities:
Contingent Consideration	$	18.0	$	-	$		-		$		18.0		$	8.5			$	-		$		-			$	8.5

													December 31, 2018
	December 31, 2017												Total Fair Value
	Total Fair Value and Carrying Value on Balance		Fair Value Measurement Category											and Carrying
	Sheet		Level 1			Level 2				Level 3				Value on Balance				Fair Value Measurement Category
													Sheet				Level 1			Level 2					Level 3
Assets:
Money market account													$	34.6			$	-		$	34.6				$	-
Certificates of deposit													$	8.2			$	-		$	8.2				$	-
Corporate bonds													$	124.2			$	-		$	124.2				$	-

Liabilities:
Contingent Consideration	$	15.9	$	-	$		-		$		15.9		$	8.1			$	-		$	-				$	8.1

As of March 31, ~~2018,~~2019, the Company ~~invested $230.0 million into~~held investments in a money market fund, certificates of deposit, and corporate bonds. All certificates of deposit are within the current FDIC insurance limits and all corporate bonds are investment grade.

The Company’s available for sale securities are comprised of certificates of deposit and bonds. These securities are valued using quoted prices for similar attributes in active markets (Level 2). Since these investments are classified as available for sale, they are recorded at their fair market value within Cash and cash equivalents and Marketable securities in the Unaudited Consolidated Balance Sheet and their unrealized gains or losses are included in other comprehensive income.

As of March 31, ~~2018,~~2019, the following table summarizes the amortized cost and the unrealized (gains) losses of the available for sale securities (in thousands):

	Certificates of Deposit				Corporate Bonds				Certificates of Deposit					Corporate Bonds
	Amortized Cost		Unrealized (gains) losses		Amortized Cost		Unrealized (gains) losses		Amortized Cost		Unrealized (gains) losses			Amortized Cost		Unrealized (gains) losses
Due within a year	$	-	$	-	$	60,010	$	(79)	$	3,360	$	(3	)	$	35,056	$	(48	)
Due after one year through five years		8,282		(34)		115,953		(1,394)		4,202		1			80,268		(266	)
Total	$	8,282	$	(34)	$	175,963	$	(1,473)	$	7,562	$	(2	)	$	115,324	$	(314	)

The Company ~~will regularly review~~periodically reviews its available for sale securities for other-than-temporary impairment. For the three-month period ended March 31, ~~2018,~~2019, the Company did not consider any of its securities to be other-than-temporarily impaired and, accordingly, did not recognize any impairment losses.

Included in interest income for the three-month period ended March 31, ~~2018~~2019 was interest income related to the Company’s available-for-sale securities of ~~$0.7~~$0.9 million.

Accumulated other comprehensive income (loss) includes ~~the cumulative gains and losses of derivative instruments that qualify as cash flow hedges,~~ foreign currency translation adjustments and changes in the fair value of available for sale securities.

The following table provides a roll-forward of accumulated other comprehensive income (loss) for the three-month ~~periods~~period ended March 31, ~~2018 and 2017 (in~~2019 (in millions):

The Company’s reporting currency is the U.S. dollar. All transactions initiated in foreign currencies are translated into U.S. dollars in accordance with ASC Topic 830, “Foreign Currency Matters” and the related rate fluctuation on transactions is included in the consolidated statements of operations.

For foreign operations with the local currency as the functional currency, assets and liabilities are translated from the local currencies into U.S. dollars at the exchange rate prevailing at the balance sheet date and equity is translated at historical rates. Revenues and expenses are translated at the average exchange rate for the period. Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included in determining comprehensive (income) loss.

Based on recent data reported by the International Monetary Fund, Argentina has been identified as a country with a highly inflationary economy. According to U.S. GAAP, a registrant should apply highly inflationary accounting in the first reporting period after such determination. Therefore, the Company transitioned the accounting for its Argentine operations to highly inflationary status as of July 1, 2018 and, commencing that date, changed the functional currency from the Argentine Peso to U.S. dollar.

~~Cost of revenue related to the Company’s television segment consists primarily of the carrying value of spectrum usage rights that were surrendered in the FCC auction for broadcast spectrum.~~ Cost of revenue related to the Company’s digital segment consists primarily of the costs of online media acquired from third-party publishers.

Assets are classified as held for sale when the carrying value is expected to be recovered through a sale rather than through their continued use and all of the necessary classification criteria have been met. Assets held for sale are recorded at the lower of their carrying value or estimated fair value less selling costs and classified as current assets. Depreciation is not recorded on assets classified as held for sale.

During the second quarter of 2018, the Company relocated the operations of two of its television stations in the Palm Springs, California market and management approved the sale of the vacated building. The building and related improvements met the criteria for classification as assets held for sale and their carrying value is presented separately in the consolidated balance sheet. Assets held for sale are classified as current assets as management believes the sale will be completed within one year.

In ~~March~~August 2018, the FASB issued ASU ~~2018-4,~~2018-15, ~~Investments – Debt Securities (Topic 320)~~Intangibles-Goodwill and ~~Regulated Operations (Topic 980), amendments to SEC Paragraphs pursuant to SEC Staff~~Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting ~~Bulletin no. 117 and SEC Release No. 33-9273.~~for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments in this update ~~provide guidance about certain amendments made~~align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to ~~SEC materials and staff guidance relating to Investments – Debt Securities (Topic 320) and Regulated Operations (Topic 980)~~develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The ~~Company~~accounting for the service element of a hosting arrangement that is ~~currently evaluating the impact this guidance will have on its consolidated financial statements related disclosures.~~

~~In February 2018, the FASB issued ASU 2018-02,~~ ~~Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. ASU 2018-02 allows~~ a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the 2017 Tax Act and also requires entities to disclose their accounting policy for releasing income tax effects from accumulated other comprehensive income. This updateservice contract is effective in fiscal years, including interim periods, beginning after December 15, 2018, and early adoption is permitted. This guidance should be applied either in the period of adoption or retrospectively to each period in which the effects of the change in the U.S. federal income tax rate in the 2017 Tax Act is recognized. The Company is still completing its assessment of the impacts including the timing of adoption.

~~In March 2017, the FASB issued ASU 2017-08,~~ ~~Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities, which shortens the amortization period for certain callable debt securities held at a premium. Specifically,~~not affected by the amendments ~~require the premium to be amortized to the earliest call date.~~in this update. The amendments in this update is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2018. Early adoption is permitted and the modified retrospective transition method should be applied through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company does not expect the adoption of the ASU to have a material impact on its consolidated financial statements.

~~In October 2016, the FASB issued ASU 2016-16,~~ ~~Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory~~ which allows entities to recognize the income tax consequences on an intra-entity transfer of an asset other than inventory when the transfer occurs. Current GAAP prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. In addition, there has been diversity in the application of the current guidance for transfers of certain intangible and tangible assets. The objective is to reduce complexity in accounting standards. ASU 2016-16 isare effective for annual reporting periods beginning after December 15, ~~2018.~~2020, and interim periods within annual periods beginning after December 15, 2021. Early adoption is ~~permitted, including adoption~~permitted. The amendments in ~~an interim period.~~this update should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company is ~~currently~~ in the process of ~~evaluating~~assessing the impact of ~~adoption of the~~this ASU on its ~~consolidated financial statements.~~Consolidated Financial Statements.

In June 2016, the FASB issued ASU 2016-13, Financial ~~Instruments –~~ Instruments—Credit Losses (Topic 326), ~~that~~which amends current guidance on other-than-temporary impairments of available-for-sale debt securities. This amended standard requires the use of an allowance to record estimated credit losses on these assets when the fair value is below the amortized cost of the asset. This standard also removes the evaluation of the length of time that a security has been in a loss position to avoid recording a credit loss. The update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is ~~still~~in the process of assessing the impact of this ~~standard will have~~ASU on its ~~consolidated financial statements and related disclosures.~~Consolidated Financial Statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic ~~842,~~ 842), which increases transparency and ~~subsequent ASU 2018-01~~) ~~which specifies the accounting for~~comparability among organizations relating to leases. ~~For operating leases, ASU 2016-02 requires a lessee~~Lessees are required to recognize a liability to make lease payments and a right-of-use asset ~~and a lease liability, initially measured at~~representing the ~~present value of~~right to use the underlying asset for the lease ~~payments,~~term. The FASB retained a dual model for lease classification, requiring leases to be classified as finance or operating leases to determine recognition in ~~its~~the earnings statement and cash flows; however, substantially all leases are required to be recognized on the balance sheet. ~~The standard~~ASU 2016-02 also requires ~~a lessee to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, on a generally straight-line basis.~~quantitative and qualitative disclosures regarding key information about leasing arrangements. ASU 2016-02 is effective using a modified retrospective approach for ~~public companies for annual reporting periods,~~fiscal years and interim periods ~~within those years~~ beginning after December 15, 2018. ~~Early adoption is permitted.~~ This standard ~~requires~~allowed entities to initially apply the new leases standard at the adoption ~~based upon~~date and recognize a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with optional practical expedients. Based on a preliminary assessment, the Company expects that most of its operating lease commitments will be subjectcumulative-effect adjustment to the ~~new guidance and recognized as operating lease liabilities and right–of-use assets upon adoption, resulting in a significant increase in the assets and liabilities on our consolidated~~opening balance ~~sheet. The Company is continuing its assessment, which may identify additional impacts this standard will have on its consolidated financial statements and related disclosures.~~

~~In March 2018, the FASB issued ASU 2018-05,~~ ~~Income Taxes (Topic 740), Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118.~~ ~~The ASU adds various Securities and Exchange Commission (“SEC”) paragraphs pursuant to the issuance~~ of ~~the December 2017 SEC Staff Accounting Bulletin No. 118,~~ ~~Income Tax Accounting Implications of the Tax Cuts and Jobs Act~~ (“SAB 118”), which was effective immediately. The SEC issued SAB 118 to address concerns about reporting entities’ ability to timely comply with the accounting requirements to recognize all of the effects of the 2017 Tax Actretained earnings in the period of enactment. SAB 118 allows disclosure that timely determination of some or all of the income tax effects from the 2017 Tax Act are incomplete by the due date of the financial statements and if possible to provide a reasonable estimate.adoption. The ~~Company has accounted for the tax effects of the 2017 Tax Act under the guidance of SAB 118, on a provisional basis. The Company’s accounting~~standard also provides for certain income tax effects is incomplete, but it has determined reasonable estimates for those effects and has recorded provisional amounts in its condensed consolidated financial statements as of March 31, 2018 and December 31, 2017.

~~In May 2017, the FASB issued ASU 2017-09,~~ ~~Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting~~, to clarify and reduce both (i) diversity in practice and (ii) cost and complexity when applying the guidance in Topic 718, to change the terms and conditions of a share-based payment award. Specifically, an entity would not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification. ASU 2017-09 is ~~effective for interim and annual reporting periods beginning after December 15, 2017.~~ The Company adopted ASU 2017-09 on January 1, 2018. The adoption of ASU 2017-09 did not have a material impact on its financial condition or results of operations, as the Company has not had any modifications to share-based payment awards. However, if the Company does have a modification to an award in the future, it will follow the guidance in ASU 2017-09.practical expedients.

~~In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) - Clarifying the Definition of a Business~~ to provide a more robust framework to use in determining when a set of assets and activities is considered a business. ASU 2017-01 is effective for interim and annual reporting periods beginning after December 15, 2017. The Company adopted this ~~standard prospectively on January 1, 2018.~~

~~In August 2016,~~ASU in Q1 2019. As permitted under the ~~FASB issued ASU 2016-15,~~ ~~Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus~~transition guidance of the ~~Emerging Issues Task Force)~~ ~~which provides specific~~standard, the Company applied the guidance on ~~eight cash flow classification issues arising from certain cash receipts and cash payments. The Company adopted this guidance on January 1, 2018 and is required to apply it on~~ a ~~retrospective basis. There was no material impact on the Company’s Consolidated Statements of Cash Flows.~~

~~In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2014-09,~~ ~~Revenue from Contracts with Customers (Topic 606)~~ which amended the existing accounting standards for revenue recognition. ASU 2014-09 establishes principles for recognizing revenue upon the transfer of promised goods or services to customers, in an amount that reflects the expected consideration received in exchange for those goods or services. Subsequently, the FASB has issued the following standards related to ASU 2014-09: ASU No. 2016-08, ~~Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations~~ ~~; ASU No. 2016-10,~~ ~~Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing~~ ~~; ASU No. 2016-12,~~ ~~Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients~~ ~~; and ASU No. 2016-20,~~ ~~Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers~~ .

~~On January 1, 2018, the Company adopted ASC Topic 606 using the modified retrospective method applied to those contracts which were not completed~~prospective basis as of ~~January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while~~the adoption date. As a result, prior period amounts ~~are~~were not adjusted and continue to be reported in accordance with ~~our historic~~ accounting guidance under ~~Topic 605.~~ASC 840.

~~Opening retained earnings as~~The Company elected the package of ~~January 1, 2018 were~~practical expedients such that the Company did not ~~affected as there was no cumulative impact of adopting Topic 606.~~reassess whether any expired or existing contracts are or contain leases. In addition, the Company did not reassess prior conclusions reached for lease classification and did not reassess initial direct costs for existing leases.

~~On December 22, 2017, the President signed the 2017 Tax Act. The 2017 Tax Act makes broad and complex changes to the U.S. tax code that affected~~Based on the Company’s ~~financial results for~~assessment, the ~~year ended December 31, 2017 and may affect financial results for the year ending December 31, 2018 and future years, including, but not limited to: (1) a reduction~~adoption of the U.S. federal corporate tax rate from 35% to 21%; (2) a general elimination of U.S. federal income taxes on dividends from foreign subsidiaries; (3) a new provision designed to tax global intangible low-taxed income (“GILTI”); (4) limitations on the deductibility of certain executive compensation; and (5) limitations on the use of Federal Tax Credits to reduce the U.S. income tax liability.

~~The SEC staff issued SAB 118, which provides~~ guidance on accounting for the tax effects of the 2017 Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the 2017 Tax Act enactment date for the Company to complete the accounting under ASC 740. In accordance with SAB 118, the Company must reflect the income tax effects of those aspects of the Act for which the accounting under ASC 740 is complete. To the extent that accounting for certain income tax effects of the 2017 Tax Act is incomplete but the Company is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. The Company was able to make a reasonable estimate of the impact of the reduction in the corporate tax rate and no significant provisional items were identified that could resultresulted in a material impact on the Company’s consolidated balance sheet. However, the impact to the ~~estimate upon finalization in 2018.~~Company’s results of operations and cash flows through March 31, 2019 are not considered material. As of the adoption date, the Company recognized right-of-use (“ROU”) assets of $45.8 million and lease liabilities of $52.4 million. The difference between the ROU assets and lease liabilities is attributed to deferred rent and lease incentives which were combined and presented net within the ROU assets. Refer to Note 4 for additional information.

~~Effective January 1,~~In June 2018, the ~~2017 Tax Act subjects a U.S. corporation~~FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to ~~tax on its GILTI. The Company has elected an accounting policy~~Non-employee Share-based Payment Accounting, which supersedes Subtopic 505-50, Equity—Equity-Based Payments to ~~treat taxes due on~~Non-Employees and expands the ~~GILTI inclusion as a current period expense. The impact on the effective tax rate for the period ended March 31, 2018 was not significant.~~

~~Adoption~~scope of ASC Topic ~~606, "Revenue from Contracts with Customers"~~718, “Compensation—Stock Compensation” to include share-based payments issued to nonemployees for goods and services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The Company adopted this ASU in Q1 2019 which did not have a material impact on our condensed consolidated financial statements and related disclosures.

In August 2018, the SEC issued a final rule to amend certain disclosure requirements that were redundant, duplicative, overlapping or superseded by other SEC disclosure requirements, US GAAP or IFRS.2 The amendments generally eliminated or otherwise reduced certain disclosure requirements of various SEC rules and regulations. However, in some cases, the amendments require additional information to be disclosed, including changes in stockholders’ equity in interim periods. The Company adopted the rule in Q1 2019 and included a statement of stockholders’ equity in our Form 10-Q.

Revenues are recognized when control of the promised services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services.

Broadcast Advertising. Television and radio revenue related to the sale of advertising is recognized at the time of broadcast. Broadcast advertising rates are fixed based on each medium’s ability to attract audiences in demographic groups targeted by advertisers and rates can vary based on the time of day and ratings of the programming airing in that day part.

Digital Advertising. Revenue from digital advertising primarily consists of two types: (1) Display advertisements on websites and mobile applications that are sold based on a cost-per-thousand impressions delivered (typically referred to as “CPM”). These impressions are delivered through the Company’s websites and through third party publishers either through direct relationships with the publishers or through digital advertising exchanges. (2) Performance driven advertising whereby the customer engages the Company to drive consumers to perform an action such as the download of a mobile application, the installation of an application, or the first use of an application (typically referred to cost per action “CPA” or cost per installation “CPI”).

Broadcast and digital advertising revenue is recognized over time in a series as a single performance obligation as the ad, impression or performance advertising is delivered per the insertion order. The Company applies the practical expedient to recognize revenue for each distinct advertising service delivered at the amount the Company has the right to invoice, which corresponds directly to the value a customer has received relative to the Company’s performance. Contracts with customers are short term in nature and billing occurs on a monthly basis with payment due in 30 days. Value added taxes collected concurrent with advertising revenue producing activities are excluded from revenue. Cash payments received prior to services rendered result in deferred revenue, which is then recognized as revenue when the advertising time or space is actually provided.

Retransmission Consent. The Company generates revenue from retransmission consent agreements that are entered into with multichannel video programming distributors, or MVPDs. The Company grants the MVPDs access to its television station signals so that they may rebroadcast the signals and charge their subscribers for this programming. Payments are received on a monthly basis based on the number of monthly subscribers.

Retransmission revenues are considered licenses of functional intellectual property and are recognized over time utilizing the sale-based or usage-based royalty exception. The Company’s performance obligation is to provide the licensee access to our intellectual property. MVPD subscribers receive and consume the content monthly as the television signal is delivered.

Spectrum Usage Rights. The Company generates revenue from agreements associated with its television stations’ spectrum usage rights from a variety of sources, including but not limited to agreements with third parties to utilize excess spectrum for the broadcast of their multicast networks; charging fees to accommodate the operations of third parties, including moving channel positions or accepting interference with broadcasting operations; and modifying and/or relinquishing spectrum usage rights while continuing to broadcast through channel sharing or other arrangements.

Revenue generated by Spectrum Usage Rights agreements are recognized over the period of the lease or when we have relinquished all or a portion of our spectrum usage rights for a station or have relinquished our rights to operate a station on the existing channel free from interference.

Other Revenue. The Company generates other revenues that are related to its broadcast operations which primarily consist of representation fees earned by the Company’s radio national representation firm, talent fees for the Company’s on air personalities, ticket and concession sales for radio events, rent from tenants of the Company’s owned facilities, barter revenue, and revenue generated under joint sales agreements.

In the case of representation fees, the Company does not control the distinct service, the commercial advertisement, prior to delivery and therefore recognizes revenue on a net basis. Similarly for joint service agreements, the Company does not own the station providing the airtime and therefore recognizes revenue on a net basis. In the case of talent fees, the on air personality is an employee of the Company and therefore the Company controls the service provided and recognizes revenue gross with an expense for fees paid to the employee.

The Company does not disclose the value of unsatisfied performance obligations when (i) contracts have an original expected length of one year or less, which applies to effectively all advertising contracts, and (ii) variable consideration is a sales-based or usage-based royalty promised in exchange for a license of intellectual property, which applies to retransmission consent revenue.

The Company applies the practical expedient to expense contract acquisition costs, such as sales commissions generated either by internal direct sales employees or through third party advertising agency intermediaries, when incurred because the amortization period is one year or less. These costs are recorded within direct operating expenses.

The following table presents our revenues disaggregated by major source for the three-month periods ended (in thousands):

	2018		2017		2019		2018
Broadcast advertising	$	37,709	$	42,788	$	34,708	$	37,709
Digital advertising		18,244		4,081		14,472		18,244
Spectrum Usage Rights		108		-		5,084		108
Retransmission Consent		8,853		7,960		8,760		8,853
Other		1,924		2,681		1,656		1,924
Total revenue	$	66,838	$	57,510	$	64,680	$	66,838

Contracts are entered into directly with customers or through an advertising agency that represents the customer. Sales of advertising to customers or agencies within a station’s designated market area (“DMA”) are referred to as local revenue, whereas sales from outside the DMA are referred to as national revenue. The following table further disaggregates the Company’s broadcast advertising revenue by sales channel for the three-month periods ended (in thousands):

	2018		2017		2019		2018
Local Direct	$	14,593	$	16,503	$	6,055	$	14,593
Local Agency		6,916		7,403		13,700		6,916
National Agency		16,200		18,882		14,953		16,200
Total revenue	$	37,709	$	42,788	$	34,708	$	37,709

The Company records deferred revenues when cash payments are received or due in advance of its performance, including amounts which are refundable. The increase in the deferred revenue balance for the three-month period ended March 31, ~~2018~~2019 is primarily driven by cash payments received or due in advance of satisfying the Company’s performance obligations, offset by revenues recognized that were included in the deferred revenue balance as of December 31, ~~2017 .~~2018.

The Company’s payment terms vary by the type and location of customer and the products or services offered. The term between invoicing and when payment is due is not significant, typically 30 days. For certain customer types, the Company requires payment before the services are delivered to the customer.

(in thousands)	December 31, 2017			Increase		Decrease *		March 31, 2018		December 31, 2018			Increase		Decrease *			March 31, 2019
Deferred revenue	$	1,535		1,959		(1,535)		$	1,959	$	2,759		2,338		(2,759	)		$	2,338

The Company’s leases are considered operating leases and primarily consist of real estate such as office space, broadcasting towers, land and land easements. An ROU asset and lease liability is recognized as of lease commencement date based on the present value of the future minimum lease payments over the lease term. As the implicit rate for operating leases is not readily determinable, the future minimum lease payments were discounted using an incremental borrowing rate. Due to the Company having a centralized treasury function, the Company applied a portfolio approach to discount its domestic lease obligations using its secured publicly traded U.S. dollar denominated debt instruments interpolating the duration of the debt to the remaining lease term. The incremental borrowing rate for international leases is the interest rate that the Company would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.

The Company’s operating leases are reflected within the consolidated balance sheet as right-of-use assets with the related liability presented as lease liability, current and lease liability, net of current portion. Lease expense is recognized on a straight-line basis over the lease term.

Generally, lease terms include options to renew or extend the lease. Unless the renewal option is considered reasonably certain, the exercise of any such options have been excluded from the calculation of lease liabilities. In addition, as permitted within the guidance, ROU assets and lease liabilities are not recorded for leases within an initial term of one year or less. The Company’s existing leases have remaining terms of less than one year up to 32 years. Certain of the Company’s lease agreements include rental payments based on changes in the CPI. Lease liabilities are not remeasured as a result of changes in the CPI; instead, changes in the CPI are treated as variable lease payments and recognized in the period in which the related obligation was incurred. Lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Certain real estate leases include additional costs such as common area maintenance (non-lease component), as well as property insurance and property taxes. These costs were excluded from future minimum lease payments as they are variable payments. As such, these costs were not part of the calculation of ROU assets and lease liabilities associated with operating leases upon transition.

The following table summarizes the expected future payments related to lease liabilities as of March 31, 2019:

The weighted average remaining lease term and the weighted average discount rate used to calculate the Company’s lease liabilities as of March 31, 2019 were 11.1 years and 6.2%, respectively.

The following table summarizes lease payments and supplemental non-cash disclosures for the three-months ended March 31, 2019:

The tables below summarize our future minimum rental commitments for operating leases as of December 31, 2018:

The following table summarizes the components of lease expense for the three months ended March 31, 2019:

Lease cost of $0.2 million, $1.3 million and $1.4 million were recorded to corporate expenses, direct operating expenses and selling, general and administrative expenses, respectively.

The Company’s management has determined that the Company operates in three reportable segments as of March 31, ~~2018,~~2019, based upon the type of advertising medium, which segments are television, radio, and digital. The Company’s segments results reflect information presented on the same basis that is used for internal management reporting and it is also how the chief operating decision maker evaluates the business.

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 owns and operates 49 radio stations (38 FM and 11 AM) located primarily in Arizona, California, Colorado, Florida, Nevada, New Mexico and Texas.

The Company owns and operates a national sales representation division, Entravision Solutions, through which the Company sells advertisements and syndicates radio programming to ~~approximately 300 stations~~more than 100 markets across the United States.

The Company owns and operates digital operations, offering mobile, digital and other interactive media platforms and services on Internet-connected devices, including local websites and social media, ~~that~~which provide users with news information and other content.

Separate financial data for each of the Company’s operating segments are provided below. Segment operating profit (loss) is defined as operating profit (loss) before corporate expenses and foreign currency (gain) loss. The Company generated 15% and 19% of its revenue outside the United States during the three-month ~~period~~periods ended March 31, ~~2018. There were no significant sources of revenue generated outside the United States during the three-month period ended~~2019 and March 31, ~~2017.~~2018, respectively. The Company evaluates the performance of its operating segments based on the following (in thousands):

	Three-Month Period									Three-Month Period
	Ended March 31,						%			Ended March 31,						%
		2018			2017		Change				2019			2018		Change
Net revenue
Television	$	34,491		$	37,710			(9	)%	$	38,253		$	34,491			11	%
Radio		14,103			15,719			(10	)%		11,955			14,103			(15	)%
Digital		18,244			4,081			347	%		14,472			18,244			(21	)%
Consolidated		66,838			57,510			16	%		64,680			66,838			(3	)%

Cost of revenue - digital media		10,625			1,752			506	%		7,642			10,625			(28	)%

Direct operating expenses
Television		15,550			14,754			5	%		14,927			15,550			(4	)%
Radio		10,674			11,017			(3	)%		9,508			10,674			(11	)%
Digital		4,809			1,321			264	%		4,495			4,809			(7	)%
Consolidated		31,033			27,092			15	%		28,930			31,033			(7	)%

Selling, general and administrative expenses
Television		5,972			5,451			10	%		5,814			5,972			(3	)%
Radio		4,606			4,704			(2	)%		4,775			4,606			4	%
Digital		2,716			1,045			160	%		3,225			2,716			19	%
Consolidated		13,294			11,200			19	%		13,814			13,294			4	%

Depreciation and amortization
Television		2,204			2,463			(11	)%		2,260			2,204			3	%
Radio		619			726			(15	)%		332			619			(46	)%
Digital		1,116			357			213	%		1,324			1,116			19	%
Consolidated		3,939			3,546			11	%		3,916			3,939			(1	)%

Segment operating profit (loss)
Television		10,765			15,042			(28	)%		15,252			10,765			42	%
Radio		(1,796	)		(728	)		147	%		(2,660	)		(1,796	)		48	%
Digital		(1,022	)		(394	)		159	%		(2,214	)		(1,022	)		117	%
Consolidated		7,947			13,920			(43	)%		10,378			7,947			31	%

Corporate expenses		5,975			5,867			2	%		6,894			5,975			15	%
Change in fair value of contingent consideration		2,100			-		*
Change in fair value contingent consideration											359			2,100			(83	)%
Foreign currency (gain) loss		213			-		*				132			213			(38	)%
Other operating (gain) loss											(1,996	)		(22	)	*
Operating income (loss)		(341	)		8,053		*				4,989			(319	)	*

Interest expense	$	(3,398	)	$	(3,645	)		(7	)%	$	(3,490	)	$	(3,398	)		3	%
Interest income		913			109			738	%		919			913			1	%
Dividend income		128			-		*				255			128			99	%
Other income (loss)		22			-		*
Income (loss) before income taxes		(2,676	)		4,517			(159	)%		2,673			(2,676	)	*

Capital expenditures
Television	$	2,080		$	967					$	6,341		$	2,080
Radio		81			268						382			81
Digital		66			9						119			66
Consolidated	$	2,227		$	1,244					$	6,842		$	2,227

		March 31,			December 31,					March 31,			December 31,
		2018			2017
Total assets											2019			2018
Television		543,974			556,942						507,024			487,929
Radio		122,636			126,248						137,488			121,020
Digital		79,292			82,777						75,676			81,460
Consolidated	$	745,902		$	765,967					$	720,188		$	690,409

The Company is subject to various outstanding claims and other legal proceedings that may arise in the ordinary course of business. In the opinion of management, any liability of the Company that may arise out of or with respect to these matters will not materially adversely affect the financial position, results of operations or cash flows of the Company.

On January 16, 2018, the Company completed the acquisition of television station KMCC-TV, which serves the Las Vegas, Nevada area, for an aggregate $3.6 million. The transaction was treated as an asset acquisition with the majority of the purchase price recorded in “Intangible assets not subject to amortization” on the Company’s consolidated balance sheet.

On April 4, 2017, the Company completed the acquisition of 100% of the stock of Headway, a provider of mobile, programmatic, data and performance digital marketing solutions primarily in the United States, Mexico and other markets in Latin America. The acquisition of Headway includes a contingent consideration arrangement that requires additional consideration to be paid by the Company to Headway based upon the achievement of certain annual performance benchmarks over a three-year period. During the quarter ended March 31, 2018, the Company increased the fair value of Contingent Consideration from $15.9 million to $18.0 million, with the resulting charge of $2.1 million recorded in “Change in Fair Value of Contingent Consideration” in the Company’s consolidated statement of operations.

InAs previously reported in a Current Report on Form 8-K filed with the SEC on May 6, 2019, on April ~~2018,~~30, 2019, the Company ~~implemented a reduction~~entered into an amendment to the 2017 Credit Agreement, which became effective on May 1, 2019. Pursuant to this amendment, the lenders waived any events of default that may have arisen under the 2017 Credit Agreement in ~~personnel~~connection with the Company’s failure to timely deliver audited financial statements for fiscal year 2018, and ~~implemented certain discretionary expense cuts. The~~amended the 2017 Credit Agreement, giving the Company ~~expects~~until May 31, 2019 to ~~recognize a charge of approximately $0.8 million~~deliver the 2018 audited financial statements.

On May 7, 2019, the Company filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2018, which Annual Report contained the 2018 audited financial statements. By filing its Annual Report on Form 10-K prior to May 31, 2019, the Company believes that it has complied with the affirmative covenants in the ~~second quarter~~amendment to the 2017 Credit Agreement regarding delivery of the 2018 ~~for severance costs related~~audited financial statements.

Pursuant to ~~these actions. Additionally,~~this amendment, the Company ~~currently anticipates that these actions will result in approximately $8 million in annualized savings beginning in~~agreed to pay to the ~~second quarter of 2018.~~

~~Subsequent~~lenders consenting to March 31, 2018, the Company repurchased an additional 1.0 million shares of its Class A common stock for an aggregate purchase price of $5.1 million, or an average price per share of $4.85. To date, the Company has repurchasedthis amendment a ~~total of approximately 2.5 million shares of its Class A common stock for aggregate purchase price of approximately $12.8 million, or an average price per share of $5.10 since the beginning~~fee equal to 0.10% of the ~~share repurchase program.~~

~~On April 11, 2018, the~~ ~~Board of Directors approved the repurchase of up to an additional $15 million~~aggregate principal amount of the ~~Company’s Class A common stock, for a total repurchase authorization~~outstanding loans held by such lenders under the 2017 Credit Agreement as of ~~up to $30~~May 1, 2019. This fee totaled approximately $0.2 million. Under the new share repurchase program, the Company is authorized to purchase shares from time to time through open market purchases or negotiated purchases, subject to market conditions and other factors.

We are a leading global media company that, through our television and radio segments, reaches and engages U.S. Hispanics across acculturation levels and media channels. Additionally, our digital segment, whose operations are located primarily in Spain, Mexico, Argentina and other countries in Latin America, reaches a global market. Our ~~expansive portfolio encompasses~~operations encompass integrated marketing and media solutions, comprised of television, radio and digital properties ~~(including~~and data analytics ~~services).~~services. For financial reporting purposes, we report in three segments based upon the type of advertising medium: television broadcasting, radio broadcasting and digital media. Our net revenue for the three-month period ended March 31, ~~2018~~2019 was ~~$66.8~~$64.7 million. Of that amount, revenue attributed to our television segment accounted for approximately ~~52%~~59%, revenue attributed to our digital segment accounted for approximately ~~27%~~23% and revenue attributed to our radio segment accounted for approximately ~~21%~~18%.

As of the date of filing this report, we own and/or operate 55 primary television stations located primarily in California, Colorado, Connecticut, Florida, Kansas, Massachusetts, Nevada, New Mexico, Texas and Washington, D.C. We own and operate 49 radio stations in 1816 U.S. markets. Our radio stations consist of 38 FM and 11 AM stations located in Arizona, California, Colorado, Florida, Nevada, New Mexico and Texas. We also operate Entravision Solutions as our national sales representation division, through which we sell advertisements and syndicate radio programming to more than ~~300~~100 markets stations across the United States. We also provide digital advertising solutions that allow advertisers to reach primarily online Hispanic audiences worldwide. We operate 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 our owned and operated digital media sites; the digital media sites of our publisher partners; and on other digital media sites we access through third-party platforms and exchanges.

We generate revenue primarily from sales of national and local advertising time on television stations, radio stations and digital media platforms, and from retransmission consent agreements that are entered into with MVPDs. Advertising rates are, in large part, based on each medium’s ability to attract audiences in demographic groups targeted by advertisers. We recognize advertising revenue when commercials are broadcast and when display or other digital advertisements record impressions on the websites of our third party publishers or as the advertiser’s previously agreed-upon performance criteria are satisfied. We do not obtain long-term commitments from our advertisers and, consequently, they may cancel, reduce or postpone orders without penalties. We pay commissions to agencies for local, regional and national advertising. For contracts directly with agencies, we record net revenue from these agencies. Seasonal revenue fluctuations are common in our industry and are due primarily to variations in advertising expenditures by both local and national advertisers. Our first fiscal quarter generally produces the lowest net revenue for the year. In addition, advertising revenue is generally higher during presidential election years ~~(2016, 2020,~~(2020, 2024, etc.), resulting from significant political advertising and, to a lesser degree, Congressional ~~off-year~~mid-term election years ~~(2018, 2022,~~(2022, 2026, etc.), resulting from increased political advertising, compared to other years.

We refer to the revenue generated by agreements with MVPDs as retransmission consent revenue, which represents payments from MVPDs for access to our television station signals so that they may rebroadcast our signals and charge their subscribers for this programming. We recognize retransmission consent revenue earned as the television signal is delivered to the MVPD.

Our FCC licenses grant us spectrum usage rights within each of the television markets in which we operate. We regard these rights as a valuable asset. With the proliferation of mobile devices and advances in technology that have freed up excess spectrum capacity, the monetization of our spectrum usage rights has become a significant part of our business in recent years. We generate revenue from agreements associated with these television stations’ spectrum usage rights from a variety of sources, including but not limited to agreements with third parties to utilize excess spectrum for the broadcast of their multicast networks; charging fees to accommodate the operations of third parties, including moving channel positions or accepting interference with broadcasting operations; and modifying and/or relinquishing spectrum usage rights while continuing to broadcast through channel sharing or other arrangements. Revenue generated by such agreements is recognized over the period of the lease or when we have relinquished all or a portion of our spectrum usage rights for a station or have relinquished our rights to operate a station on the existing channel free from interference. In addition, we will consider strategic acquisitions of television stations to further this strategy from time to time, as well as additional monetization opportunities expected to arise as the television broadcast industry anticipates advances in ATSC 3.0.

Our primary expenses are employee compensation, including commissions paid to our sales staff and amounts paid to our national representative firms, as well as expenses for general and administrative functions, promotion and selling, engineering, marketing, and local programming. Our local programming costs for television consist primarily of costs related to producing a local newscast in most of our markets. Cost of revenue related to our television segment consists primarily of the carrying value of spectrum usage rights that were surrendered in the FCC auction for broadcast spectrum. In addition, cost of revenue related to our digital media segment consists primarily of the costs of online media acquired from third-party publishers and third party server costs. Direct operating expenses include salaries and commissions of sales staff, amounts paid to national representation firms, production and programming expenses, fees for ratings services, and engineering costs. Corporate expenses consist primarily of salaries related to corporate officers and back office functions, third party legal and accounting services, and fees incurred as a result of being a publicly traded and reporting company.

During the first quarter of ~~2018,~~2019, our consolidated revenue ~~increased~~decreased to ~~$66.8~~$64.7 million from ~~$57.5~~$66.8 million in the prior year period, primarily due to ~~growth~~a decrease in ~~the~~advertising revenue in our digital ~~segment~~ and ~~retransmission consent~~radio segments. The overall decrease in revenue was partially offset by an increase in revenue from spectrum usage rights in our television segment. Our audience shares remained strong in the nation’s most densely populated Hispanic markets.

Net revenue in our television segment ~~decreased~~increased to $38.3 million in the first quarter of 2019 from $34.5 million in the first quarter of ~~2018 from $37.7 million in the first quarter of 2017.~~2018. This ~~decrease~~increase of approximately ~~$3.2~~$3.8 million, or 9%11%, in net revenue was primarily due to ~~decreases~~an increase in ~~national~~revenue from spectrum usage rights and ~~local~~an increase in national advertising revenue, partially offset by ana decrease in local advertising revenue, as a result in part of ratings declines and changing demographic preferences of audiences. Additionally, there is a trend for advertising to move increasingly from traditional media, such as television, to new media, such as digital media. The increase in ~~retransmission consent~~ revenue ~~and an increase~~was also partially offset by a decrease in political advertising revenue, which was not material in ~~2017.~~the first quarter of 2019. We generated a total of ~~$8.9~~$8.8 million of retransmission consent revenue in the first quarter of ~~2018.~~2019. We anticipate that retransmission consent revenue for the full year ~~2018~~2019 will be greater than it was for the full year ~~2017~~2018 and will continue to be a significant source of net revenues in future periods.

Net revenue in our radio segment decreased to $12.0 million in the first quarter of 2019 from $14.1 million in the first quarter of ~~2018 from $15.7 million in the first quarter of 2017.~~2018. This decrease of approximately ~~$1.6~~$2.1 million, or ~~10%~~15%, in net revenue was primarily due to decreases in local and national advertising ~~revenue.~~revenue, as a result in part of ratings declines and changing demographic preferences of audiences. Additionally, there is a trend for advertising to move increasingly from traditional media, such as radio, to new media, such as digital media. This trend has had a more significant impact on our radio revenue as compared to television revenue, and we expect that this trend will continue.

Net revenue in our digital segment ~~increased~~decreased to $14.5 million in the first quarter of 2019 from $18.2 million in the first quarter of ~~2018 from $4.1 million in the first quarter of 2017.~~2018. This ~~increase~~decrease of approximately ~~$14.1~~$3.7 million, or ~~347%~~21%, in net revenue was primarily due to declines in both international and domestic revenue. We have previously noted a trend in our domestic digital operations whereby revenue is shifting more to automated self-service platforms, referred to in our industry as programmatic revenue, and this trend is now growing in markets outside the ~~acquisition~~U.S. As a result advertisers are demanding more efficiency and lower cost from intermediaries like us which is putting pressure on margins. In response to this, we have started to offer programmatic solutions to advertisers and strategically shifted the focus of ~~Headway during the second quarter~~our other digital offerings to focus on generating revenue with lower associated cost of ~~2017, which did not contribute~~revenue. This has contributed to ~~our results of operations~~a decline in the ~~prior year period.~~volume of revenue but led to improvement in the gross margin percentage. The digital advertising industry is dynamic and undergoing rapid changes in technology and competition and we expect this trend to continue. We must remain adaptable to meet these dynamic and rapid changes and may need to adjust our business strategies accordingly.

Substantially all of our television stations are Univision- or UniMás-affiliated television stations. Our network affiliation agreement with Univision provides certain of our owned stations the exclusive right to broadcast Univision’s primary network and UniMás network programming in their respective markets. Under the network affiliation agreement, we retain the right to sell no less than four minutes per hour of the available advertising time on stations that broadcast Univision network programming, and the right to sell approximately four and a half minutes per hour of the available advertising time on stations that broadcast UniMás network programming, subject to adjustment from time to time by Univision.

Under the network affiliation agreement, Univision acts as our exclusive third-party sales representative for the sale of certain national advertising on our Univision- and UniMás-affiliate television stations, and we pay certain sales representation fees to Univision relating to sales of all advertising for broadcast on our Univision- and UniMás-affiliate television stations. During each of the three-month periods ended March 31, ~~2018~~2019 and ~~2017,~~2018, the amount we paid Univision in this capacity was $2.0 ~~million and $2.3 million, respectively.~~million.

We also generate revenue under two marketing and sales agreements with Univision, which give us the right to manage the marketing and sales operations of Univision-owned Univision affiliates in six markets – Albuquerque, Boston, Denver, Orlando, Tampa and Washington, D.C.

Under ~~our~~the current proxy agreement we have entered into with Univision, we grant Univision the right to negotiate the terms of retransmission consent agreements for our Univision- and UniMás-affiliated television station signals. Among other things, the proxy agreement provides terms relating to compensation to be paid to us by Univision with respect to retransmission consent agreements entered into with MVPDs. During the three-month periods ended March 31, ~~2018~~2019 and ~~2017,~~2018, retransmission consent revenue accounted for approximately ~~$8.9~~$8.8 million and ~~$8.0~~$8.9 million, respectively, of which ~~$7.5~~$6.7 million and ~~$7.3~~$7.5 million, respectively, relate to the Univision proxy agreement. The term of the proxy agreement extends with respect to any MVPD for the length of the term of any retransmission consent agreement in effect before the expiration of the proxy ~~agreement~~agreement.

Univision currently owns approximately ~~10%~~11% of our common stock on a fully-converted basis. Our Class U common stock held by Univision has limited voting rights and does not include the right to elect directors. As the holder of all of our issued and outstanding Class U common stock, so long as Univision holds a certain number of shares, we may not, without the consent of Univision, merge, consolidate or enter into another business combination, dissolve or liquidate our company or dispose of any interest in any Federal Communications Commission, or FCC, license for any of our Univision-affiliated television stations, among other things. Each share of Class U common stock is automatically convertible into one share of Class A common stock (subject to adjustment for stock splits, dividends or combinations) in connection with any transfer to a third party that is not an affiliate of Univision. In addition, as the holder of all of our issued and outstanding Class U common stock, so long as Univision holds a certain number of shares of Class U common stock, we may not, without the consent of Univision, merge, consolidate or enter into a business combination, dissolve or liquidate our company or dispose of any interest in any Federal Communications Commission, or FCC, license with respect to television stations which are affiliates of Univision, among other things.

For a description of our critical accounting policies, please refer to “Application of Critical Accounting Policies and Accounting Estimates” in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the fiscal year ended December 31, ~~2017,~~2018, filed with the SEC on ~~March 30, 2018.~~May 7, 2019.

~~In February 2018, the FASB issued ASU 2018-02,~~ ~~Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. ASU 2018-02 allows~~ a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the 2017 Tax Act, which was signed into law on December 22, 2017, and also requires entities to disclose their accounting policy for releasing income tax effects from accumulated other comprehensive income. This updateservice contract is effective in fiscal years, including interim periods, beginning after December 15, 2018, and early adoption is permitted. This guidance should be applied either in the period of adoption or retrospectively to each period in which the effects of the change in the U.S. federal income tax rate in the 2017 Tax Act is recognized. The Company is still completing its assessment of the impacts including the timing of adoption.

~~In February 2016, the FASB issued ASU 2016-02,~~ ~~Leases (Topic 842,~~ ~~and subsequent ASU 2018-01~~) which specifies the accounting for leases. For operating leases, ASU 2016-02 requires a lessee to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in its balance sheet. The standard also requires a lessee to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, on a generally straight-line basis. ASU 2016-02 is effective for public companies for annual reporting periods, and interim periods within those years beginning after December 15, 2018. Early adoption is permitted. This standard requires adoption based upon a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with optional practical expedients. Based on a preliminary assessment, the Company expects that most of its operating lease commitments will be subject to the new guidance and recognized as operating lease liabilities and right–of-use assets upon adoption, resulting in a significant increase in the assets and liabilities on our consolidated balance sheet. The Company is continuing its assessment, which may identify additional impacts this standard will have on its consolidated financial statements and related disclosures.Consolidated Financial Statements.

The following table sets forth selected data from our operating results for the three-month periods ended March 31, ~~2018~~2019 and ~~2017~~2018 (in thousands):

	Three-Month Period									Three-Month Period
	Ended March 31,						%			Ended March 31,						%
	2018			2017			Change			2019			2018			Change
Statements of Operations Data:
Net Revenue	$	66,838		$	57,510			16	%	$	64,680		$	66,838			(3	)%

Cost of revenue - digital media		10,625			1,752			506	%		7,642			10,625			(28	)%
Direct operating expenses		31,033			27,092			15	%		28,930			31,033			(7	)%
Selling, general and administrative expenses		13,294			11,200			19	%		13,814			13,294			4	%
Corporate expenses		5,975			5,867			2	%		6,894			5,975			15	%
Depreciation and amortization		3,939			3,546			11	%		3,916			3,939			(1	)%
Change in fair value of contingent consideration		2,100			-		*
Change in fair value contingent consideration											359			2,100			(83	)%
Foreign currency (gain) loss		213			-		*				132			213			(38	)%
Other operating (gain) loss											(1,996	)		(22	)	*
		67,179			49,457			36	%		59,691			67,157			(11	)%
Operating income (loss)		(341	)		8,053		*				4,989			(319	)	*
Interest expense		(3,398	)		(3,645	)		(7	)%		(3,490	)		(3,398	)		3	%
Interest income		913			109			738	%		919			913			1	%
Dividend income		128			-		*				255			128			99	%
Other income (loss)		22			-		*
Income before income (loss) taxes		(2,676	)		4,517		*				2,673			(2,676	)	*
Income tax benefit (expense)		930			(1,899	)	*				(1,093	)		930		*
Income (loss) before equity in net income (loss) of
nonconsolidated affiliate		(1,746	)		2,618		*				1,580			(1,746	)	*
Equity in net income (loss) of nonconsolidated affiliate, net of tax		(62	)		-		*				(156	)		(62	)		152	%
Net income (loss)	$	(1,808	)	$	2,618		*			$	1,424		$	(1,808	)	*

Other Data:
Capital expenditures		2,227			1,244						6,842			2,227
Consolidated adjusted EBITDA (adjusted for non-cash stock-based compensation) (1)		6,937			12,570						8,057			6,937
Net cash provided by operating activities		3,627			12,916						14,307			3,627
Net cash used in investing activities		(165,586	)		(2,006	)					4,449			(165,586	)
Net cash used in financing activities		(9,897	)		(3,448	)					(13,478	)		(9,897	)

Cash Flow, which is defined as consolidated adjusted EBITDA, less consolidated interest expense, less debt principal payments, less taxes paid, less other amounts set forth in the definition of Excess Cash Flow in the 2017 Credit Agreement. The total leverage ratio was as follows (in each case as of March 31): ~~2018, 4.9~~2019, 3.1 to 1; ~~2017, 3.2~~2018, 4.9 to 1.

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), non-recurring cash expenses, 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, acquisitions and dispositions and certain pro-forma cost savings, consolidated adjusted EBITDA has certain limitations because it excludes and includes several important 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.

Consolidated adjusted EBITDA is a non-GAAP measure. The most directly comparable GAAP financial measure to consolidated adjusted EBITDA is cash flows from operating activities. A reconciliation of this non-GAAP measure to cash flows from operating activities follows (in thousands):

	Three-Month Period						Three-Month Period
	Ended March 31,						Ended March 31,
		2018			2017			2019			2018
Consolidated adjusted EBITDA	$	6,937		$	12,570		$	8,057		$	6,937

Interest expense		(3,398	)		(3,645	)		(3,490	)		(3,398	)
Interest income		913			109			919			913
Dividend income		128			-			255			128
Income tax expense		930			(1,899	)		(1,093	)		930
Equity in net loss of nonconsolidated affiliates		(62	)		-			(156	)		(62	)
Amortization of syndication contracts		(176	)		(109	)		(124	)		(176	)
Payments on syndication contracts		186			113			135			186
Non-cash stock-based compensation included in direct operating expenses		(216	)		(223	)		(134	)		(216	)
Non-cash stock-based compensation included in corporate expenses		(1,033	)		(752	)		(666	)		(1,033	)
Depreciation and amortization		(3,939	)		(3,546	)		(3,916	)		(3,939	)
Change in fair value of contingent consideration		(2,100	)		-
Other income (loss)		22			-
Change in fair value contingent consideration								(359	)		(2,100	)
Other operating (gain) loss								1,996			22
Net income (loss)		(1,808	)		2,618			1,424			(1,808	)

Depreciation and amortization		3,939			3,546			3,916			3,939
Deferred income taxes		(1,014	)		1,473			470			(1,014	)
Amortization of debt issue costs		124			183
Non-cash interest								251			124
Amortization of syndication contracts		176			109			124			176
Payments on syndication contracts		(186	)		(113	)		(135	)		(186	)
Equity in net (income) loss of nonconsolidated affiliate		62			-			156			62
Non-cash stock-based compensation		1,249			975			800			1,249
(Gain) loss on disposal of property and equipment								86			-
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		11,043			10,979			13,657			11,043
(Increase) decrease in prepaid expenses and other assets		(3,981	)		(891	)		869			(3,981	)
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(5,977	)		(5,963	)		(7,311	)		(5,977	)
Cash flows from operating activities	$	3,627		$	12,916		$	14,307		$	3,627

Net Revenue. Net revenue ~~increased~~decreased to $64.7 million for the three-month period ended March 31, 2019 from $66.8 million for the three-month period ended March 31, 2018, ~~from $57.5 million for the three-month period ended March 31, 2017, an increase~~a decrease of ~~$9.3~~$2.1 million. Of the overall ~~increase,~~decrease, approximately ~~$14.2~~$3.8 million was attributable to our digital segment and was primarily due to ~~the acquisition of Headway during the second quarter of 2017, which did not contribute to our results of operations~~declines in ~~the prior year period.~~both international and domestic revenue. The ~~overall increase was partially offset~~decline in revenue is driven by a ~~decrease~~trend whereby revenue is shifting more to automated self-service platforms, referred to in our

~~television segment~~ industry as programmatic revenue. Additionally, $2.1 million of approximately $3.2 million primarily due to decreases in national and local advertising revenue, partially offset by an increase in retransmission consent revenue and an increase in political advertising revenue, which was not material in 2017. Additionally, the overall ~~increase~~decrease was ~~partially offset by a decrease in~~attributable to our radio segment ~~of approximately $1.6 million~~and was primarily due to decreases in local and national advertising ~~revenue.~~revenue, as a result in part of ratings declines and changing demographic preferences of audiences and a trend for advertising to move increasingly from traditional media, such as radio, to new media, such as digital media. The overall decrease in revenue was partially offset by an increase in our television segment of approximately $3.8 million primarily due to an increase in revenue from spectrum usage rights and an increase in national advertising revenue, partially offset by a decrease in local advertising revenue, as a result in part of ratings declines and changing demographic preferences of audiences and a trend for advertising to move increasingly from traditional media, such as television, to new media, such as digital media. The increase in revenue in our television segment was also partially offset by a decrease in political advertising revenue, which is not material in 2019.

We currently anticipate that for the full year ~~2018,~~2019, net revenue will increase from ~~digital media, political advertising revenue in all our segments, and~~ retransmission consent revenue ~~in our television segment,~~and spectrum usage rights compared to ~~2017. In general, we have seen a decline in advertising in traditional media, including television and radio, as advertising moves increasingly to new media, such as digital media.~~2018. We anticipate ~~that this trend~~political revenue will ~~continue for at least the foreseeable future.~~decrease in 2019 compared to 2018.

Cost of revenue-Digital. Cost of revenue in our digital segment ~~increased~~decreased to $7.6 million for the three-month period ended March 31, 2019 from $10.6 million for the three-month period ended March 31, 2018, ~~from $1.8~~a decrease of $3.0 million, primarily due to the decrease in revenue in our digital segment and a strategic shift in our digital business designed to focus on generating revenue with lower associated costs to produce higher margins.

Direct Operating Expenses. Direct operating expenses decreased to $29.0 million for the three-month period ended March 31, ~~2017, an increase of $8.8 million, primarily due to the acquisition of Headway during the second quarter of 2017, which did not contribute to cost of revenue in the prior year period.~~

~~Direct Operating Expenses.~~ ~~Direct operating expenses increased to~~2019 from $31.0 million for the three-month period ended March 31, 2018, ~~from $27.1 million for the three-month period ended March 31, 2017, an increase~~a decrease of ~~$3.9~~$2.0 million. Of the overall ~~increase,~~decrease, approximately ~~$3.5~~$1.1 million was attributable to our digital segment and was primarily due to the acquisition of Headway during the second quarter of 2017, which did not contribute to cost of revenue in the prior year period. Additionally, approximately $0.8 million of the overall increase was attributable to our television segment and the acquisition of station KMIR-TV in the fourth quarter of 2017, which did not contribute to direct operating expenses in the prior year period. The overall increase was partially offset by a decrease in radio segment ~~of approximately $0.3 million~~ primarily due to a decrease in expenses associated with the decrease in advertising revenue and a decrease in salary expense. Additionally, approximately $0.6 million of the overall decrease was attributable to our television segment and was primarily due to expenses associated with the decrease in advertising revenue. In addition, approximately $0.3 million of the overall decrease was attributable to our digital segment primarily due to a decrease in expenses associated with the decrease in revenue. As a percentage of net revenue, direct operating expenses decreased to 45% for the three-month period ended March 31, 2019 from 46% for the three-month period ended March 31, ~~2018 from 47% for the three-month period ended March 31, 2017.~~2018.

We currently anticipate that for the full year ~~2018,~~2019, direct operating expenses will ~~increase~~decrease as a result of ~~the acquisition of station KMIR-TV in the fourth quarter of 2017 and operating Headway for a full year in 2018 compared to nine months in 2017, partially offset by decreases associated with~~ a previously announced reduction in personnel and other discretionary expense cuts, both of which were implemented beginning in ~~April~~the second quarter of 2018.

Selling, General and Administrative Expenses. Selling, general and administrative expenses increased to $13.8 million for the three-month period ended March 31, 2019 from $13.3 million for the three-month period ended March 31, 2018, ~~from $11.2 million for the three-month period ended March 31, 2017,~~ an increase of ~~$2.1~~$0.5 million. ~~Of the overall~~The increase ~~$1.7 million was attributable to our digital segment and~~ was primarily due to the acquisition of Headway during the second quarter of 2017, which did not contribute to our results of operations in the prior year period. Additionally, approximately $0.5 million of the increase was attributable to our television segment and the acquisition of station KMIR-TV in the fourth quarter of 2017, which did not contribute to selling, general and administrative expenses in the prior year period, an increase in ~~salary expense and~~ bad debt ~~expense. The overall increase was partially offset by a decrease~~expense in ~~radio segment of approximately $0.1 million primarily due to a decrease in promotional expenses.~~our digital segment. As a percentage of net revenue, selling, general and administrative expenses ~~increased to 20%~~remained constant at 21% for the three-month ~~period~~periods ended March 31, ~~2018 from 19% for the three-month period ended March 31, 2017.~~2019 and 2018.

We currently anticipate that for the full year ~~2018,~~2019, selling, general and administrative expenses will ~~increase~~decrease as a result of ~~the acquisition of station KMIR-TV in the fourth quarter of 2017 and operating Headway for a full year in 2018 compared to nine months in 2017, partially offset by decreases associated with~~ a previously announced reduction in personnel and other discretionary expense cuts, both of which were implemented beginning in ~~April~~the second quarter of 2018.

Corporate Expenses. Corporate expenses increased to $6.9 million for the three-month period ended March 31, 2019 from $6.0 million for the three-month period ended March 31, 2018, ~~from $5.9 million for the three-month period ended March 31, 2017,~~ an increase of ~~$0.1~~$0.9 million. The increase was primarily due to an increase in ~~non-cash stock-based compensation expense.~~audit fees. As a percentage of net revenue, corporate expenses ~~decreased~~increased to 11% for the three-month period ended March 31, 2019 from 9% for the three-month period ended March 31, ~~2018 from 10%~~2018.

We currently anticipate that for the ~~three-month period ended March 31, 2017.~~

~~We believe that~~full year 2019, corporate expenses will ~~decrease during 2018 compared to 2017~~increase, primarily as a result of ~~expenses in the 2017 period related to the FCC auction for broadcast spectrum and the acquisition of Headway.~~increased audit fees.

Depreciation and Amortization. Depreciation and amortization ~~increased to~~remained constant at $3.9 million for the three-month ~~period~~periods ended March 31, 2018 from $3.5 million for the three-month period ended March 31, 2017, an increase of $0.4 million. The increase was primarily due to an increase in amortization expense related to the acquisitions of Headway2019 and ~~KMIR-TV in 2017.~~2018.

Change in fair value of contingent consideration. As a result of the change in fair value of the contingent consideration related to ~~the~~our acquisition of 100% of several entities collectively doing business as Headway ~~acquisition,~~(“Headway”), we recognized an expense of $0.4 million for the three-month period ended March 31, 2019 compared to $2.1 million for the three-month period ended March 31, 2018. We have not completed the process, described in the agreements related to the acquisition of Headway, of finalizing the calculation of the contingent consideration, if any, related to the acquisition of Headway with respect to calendar year 2018. As a result, as of the date of this filing we are unable to determine the final amount of such contingent consideration, if any, to be paid with respect to calendar year 2018. The determination of the final amount of such contingent consideration, if any, to be paid with respect to calendar year 2018 may result in adjustment in future periods to the fair value of our liability for contingent consideration.

Foreign currency (gain) loss. Our historical revenues have primarily been denominated in U.S. dollars, and the majority of our current revenues continue to be, and are expected to remain, denominated in U.S. dollars. However, our operating expenses are generally denominated in the currencies of the countries in which our operations are located, and we have operations in countries other than the U.S., primarily those operations related to our Headway business. As a result, we have operating expense, attributable to foreign currency, that is primarily related to the operations related to our Headway business. We had foreign currency loss of $0.1 million for the three-month period ended March 31, 2019 compared to a foreign currency loss of $0.2 million for the three-month period ended March 31, 2018. Foreign currency loss was primarily due to currency fluctuations that affected our digital segment operations located outside the U.S., primarily related to our Headway business.

Other operating gain. Other operating gain was $2.0 million for the three-month period ended March 31, 2019 due to gain in connection with the required relocation of certain television stations to a different channel as part of the broadcast television repack following the FCC auction for broadcast spectrum. Other operating gain was not significant for the three-month period ended March 31, 2018.

Operating Income. As a result of the above factors, operating income was $5.0 million for the three-month period ended March 31, 2019, compared to operating loss ~~was~~of $0.3 million for the three-month period ended March 31, ~~2018, compared~~2018.

Interest Expense, net. Interest expense, net increased to ~~operating income of $8.0~~$2.6 million for the three-month period ended March 31, ~~2017.~~

~~Interest Expense, net.~~ ~~Interest expense, net decreased to~~2019 from $2.5 million for the three-month period ended March 31, 2018, ~~from $3.5 million~~an increase of $0.1 million. This increase was primarily due to lower interest income earned on the lower balance of available-for-sale securities.

Income Tax Expense. Income tax expense for the three-month period ended March 31, ~~2017, a decrease~~2019 was $1.1 million, or 41% of ~~$1.0 million. This decrease was primarily due to interest income earned on available-for-sale securities.~~

~~Income Tax Expense.~~ our pre-tax loss. Income tax benefit for the three-month period ended March 31, 2018 was $0.9 million, or 35% of our pre-tax ~~loss. Income tax expense for the three-month period ended March 31, 2017 was $1.9 million, or 42% of our pre-tax~~ income. The effective tax rate for the quarter ended March 31, ~~2018 differed from the~~2019 was higher than our statutory rate ~~of 21% primarily because of~~due to foreign and state taxes, and nondeductible expenses. ~~The effective tax rate differs from prior quarters as a result of the change in the US federal statutory tax rate from 35% to 21% due to the enactment of the 2017 Tax Act.~~ The company computes its interim tax expense by projecting its effective tax rate for the year and applying the projected annual effective tax rate to the year to date pre-tax income from continuing operations for the reporting quarter. Additional “discrete" items (such as excess tax benefits from share based compensation) may adjust the year to date tax expense in the quarter in which such items occur.

Our management periodically evaluates the realizability of the deferred tax assets and, if it is determined that it is more likely than not that the deferred tax assets are realizable, adjusts the valuation allowance accordingly. Valuation allowances are established and maintained for deferred tax assets on a “more likely than not” threshold. The process of evaluating the need to maintain a valuation allowance for deferred tax assets and the amount maintained in any such allowance is highly subjective and is based on many factors, several of which are subject to significant judgment calls.

Based on our analysis we determined that it was more likely than not that our deferred tax assets would be realized.

Net Revenue. Net revenue in our television segment ~~decreased~~increased to $38.3 million for the three-month period ended March 31, 2019 from $34.5 million for the three-month period ended March 31, 2018, ~~from $37.7 million for the three-month period ended March 31, 2017, a decrease~~an increase of approximately ~~$3.2 million.~~$3.8 million, or 11%. The ~~decrease~~increase was primarily due to ~~decreases~~an increase in revenue from spectrum usage rights and an increase in national ~~and~~advertising revenue, partially offset by a decrease in local advertising revenue, as a result in part of ratings declines and changing demographic preferences of audiences. Additionally, there is a trend for advertising to move increasingly from traditional media, such as television, to new media, such as digital media. The ~~decrease~~increase in revenue was also partially offset by ~~an increase in retransmission consent revenue and an increase~~a decrease in political advertising revenue, which was not material in ~~2017.~~2019. We generated a total of ~~$8.9~~$8.8 million and ~~$8.0~~$8.9 million in retransmission consent revenue for the three-month periods ended March 31, 2019 and 2018, respectively.

Direct Operating Expenses. Direct operating expenses in our television segment decreased to $14.9 million for the three-month period ended March 31, 2019 from $15.6 million for the three-month period ended March 31, 2018, a decrease of approximately $0.7 million. The decrease was primarily due to expenses associated with the decrease in advertising revenue.

Selling, General and ~~2017, respectively.~~Administrative Expenses. Selling, general and administrative expenses in our television segment decreased to $5.8 million for the three-month period ended March 31, 2019 from $6.0 million for the three-month period ended March 31, 2018, a decrease of approximately $0.2 million. The decrease was primarily due to a decrease in salary expense.

Net Revenue. Net revenue in our radio segment decreased to $12.0 million in the first quarter of 2019 from $14.1 million in the first quarter of 2018. This decrease of approximately $2.1 million, or 15%, in net revenue was primarily due to decreases in local and national advertising revenue, as a result in part of ratings declines and changing demographic preferences of audiences. Additionally, there is a trend for advertising to move increasingly from traditional media, such as radio, to new media, such as digital media. This trend has had a more significant impact on our radio revenue as compared to television revenue, and we expect that this trend will continue.

Direct Operating Expenses. Direct operating expenses in our ~~television~~radio segment ~~increased~~decreased to ~~$15.6~~$9.5 million for the three-month period ended March 31, 2019 from $10.7 million for the three-month period ended March 31, 2018, ~~from $14.8 million for the three-month period ended March 31, 2017, an increase~~a decrease of ~~approximately $0.8~~$1.2 million. The ~~increase~~decrease was primarily due to ~~the acquisition of station KMIR-TV in the in the fourth quarter of 2017, which did not contribute to direct operating expenses in the prior year period, partially offset by~~ a decrease in expenses associated with the decrease in advertising revenue and a decrease in salary expense.

Selling, General and Administrative Expenses. Selling, general and administrative expenses in our ~~television~~radio segment increased to ~~$6.0~~$4.7 million for the three-month period ended March 31, ~~2018~~2019 from $5.5 million for the three-month period ended March 31, 2017, an increase of approximately $0.5 million. The increase was primarily due to the acquisition of station KMIR-TV in the fourth quarter of 2017, which did not contribute to selling, general and administrative expenses in the prior year period, an increase in salary expense and bad debt expense.

~~Net Revenue~~. Net revenue in our radio segment decreased to $14.1 million for the three-month period ended March 31, 2018 from $15.7 million for the three-month period ended March 31, 2017, a decrease of $1.6 million. The decrease was primarily due to decreases in local and national advertising revenue, as part of a trend for advertising to move increasingly from traditional media, such as radio, to new media, such as digital media.

~~Direct Operating Expenses.~~ Direct operating expenses in our radio segment decreased to $10.7 million for the three-month period ended March 31, 2018 from $11.0 million for the three-month period ended March 31, 2017, a decrease of $0.3 million. The decrease was primarily a decrease in expenses associated with the decrease in advertising revenue and a decrease in salary expense.

~~Selling, General and Administrative Expenses.~~ ~~Selling, general and administrative expenses in our radio segment decreased to~~ $4.6 million for the three-month period ended March 31, 2018, ~~from $4.7 million for the three-month period ended March 31, 2017, a decrease~~an increase of $0.1 million. The ~~decrease~~increase was primarily due to ~~a decrease~~an increase in promotional expense.

Net ~~Revenue~~Revenue. . Net revenue in our digital segment ~~increased~~decreased to $14.5 million in the first quarter of 2019 from $18.2 million ~~for~~in the three-month period ended March 31, 2018 from $4.1 million for the three-month period ended March 31, 2017, an increase of $14.1 million. The increase was primarily due to the acquisition of Headway during the secondfirst quarter of ~~2017, which did not contribute to our results~~2018. This decrease of ~~operations~~approximately $3.7 million, or 21%, in ~~the prior year period. This increase~~net revenue was ~~partially offset by~~ a ~~decrease~~result of declines in ~~national revenue~~both international and domestic revenue. We have previously noted a trend in our ~~preexisting~~domestic digital ~~business, driven by continued shifts in the digital advertising industry toward video advertising and the increased use of~~operations whereby revenue is shifting more to automated ~~buying~~self-service platforms, referred to in our industry as programmatic revenue, and this trend is now growing in markets outside the U.S. As a result advertisers are demanding more efficiency and lower cost from intermediaries like us which is putting pressure on margins. In response to this, we have started to offer programmatic solutions to advertisers and strategically shifted the focus of our other digital offerings to focus on generating revenue with lower associated cost of revenue. This has contributed to a decline in the volume of revenue but led to improvement in the gross margin percentage. The digital advertising industry is dynamic and undergoing rapid ~~change, which includes the current shift toward programmatic revenue. We anticipate that~~changes in technology and competition and we expect this trend ~~will continue in the digital advertising industry~~to continue. We must remain adaptable to meet these dynamic and ~~that other trends~~rapid changes and may ~~emerge, requiring us~~need to ~~respond to changing consumer demands.~~adjust our business strategies accordingly.

Cost of revenue. Cost of revenue in our digital segment ~~increased~~decreased to $7.6 million for the three-month period ended March 31, 2019 from $10.6 million for the three-month period ended March 31, 2018, ~~from $1.8~~a decrease of $3.0 million, ~~for the three month period ended March 31, 2017, an increase of $8.8 million. This increase was~~primarily due to the ~~acquisition of Headway during the second quarter of 2017, which did not contribute to our results of operations~~decrease in ~~the prior year period. Because of third party media costs, our margins tend to be smaller in our digital segment than in our other segments.~~revenue. As a percentage of digital net revenue, cost of revenue ~~increased~~decreased to 53% for the three-month period ended March 31, 2019 from 58% for the three-month period ended March 31, ~~2018 from 43% for the three-month period ended March 31, 2017. The increase in cost of revenue~~2018. This decrease as a percentage of ~~digital~~net revenue ~~was primarily due to the acquisition~~is a result of ~~Headway and~~ a ~~higher percentage of programmatic revenue~~strategic shift in our ~~preexisting~~ digital ~~business. Because of the high volume and relative efficiencies of these programmatic platforms, the margins tend~~business designed to ~~be lower.~~focus on generating revenue with lower associated costs to produce higher margins.

Direct operating expenses. Direct operating expenses in our digital segment ~~increased~~decreased to ~~$4.8~~$4.5 million for the three-month period ended March 31, ~~2018~~2019 from ~~$1.3~~$4.8 million for the three month period ended March 31, ~~2017, an increase~~2018, a decrease of ~~$3.5~~$0.3 million. The ~~increase~~decrease was primarily due to the acquisition of Headway during the second quarter of 2017, which did not contribute to our results of operations in the prior year period, partially offset by a decrease in our preexisting digital business due to a decrease in expenses associated with the decrease in ~~advertising revenue and a decrease in salary expense.~~revenue.

Selling, general and administrative expenses. Selling, general and administrative expenses in our digital segment increased to $3.2 million for the three-month period ended March 31, 2019 from $2.7 million for the three-month period ended March 31, 2018, ~~from $1.0 million for the three-month period ended March 31, 2017,~~ an increase of ~~$1.7~~$0.5 million. The increase was primarily due to ~~the acquisition of Headway during the second quarter of 2017, which did not contribute to our results of operations in the prior year period, and~~ an increase in ~~salary expense.~~bad debt expenses.

We had net income of ~~$176.3~~$12.2 million, ~~$20.4~~$175.7 million, and ~~$25.6~~$20.4 million for the years ended December 31, 2018, 2017 ~~2016~~ and ~~2015,~~2016, respectively. We had positive cash flow from operations of $33.8 million, $301.5 million ~~$57.3 million~~ and ~~$62.3~~$57.3 million for the years ended December 31, 2018, 2017 and 2016, ~~and 2015,~~ respectively. We generated cash flows from operations of $14.3 million for the three-month period ended March 31, 2019. We expect to fund our working capital requirements, capital expenditures and payments of principal and interest on outstanding indebtedness, with cash on hand and cash flows from operations. We currently anticipate that funds

generated from operations, cash on hand and available borrowings under our 2017 Credit Facility will be sufficient to meet our anticipated cash requirements for at least the next twelve months. At March 31, ~~2018,~~2019, we held cash and cash equivalents of ~~$7.1~~$6.8 million in accounts outside the United States. Our liquidity is not materially impacted by the amount held in accounts outside the United States as our operating cash flows are driven primarily by U.S. sources.

On November 30, 2017 (the “Closing Date”), we entered into our 2017 Credit Facility pursuant to the 2017 Credit Agreement. The 2017 Credit Facility consists of a $300.0 million senior secured Term Loan B Facility (the “Term Loan B Facility”), which was drawn in full on the Closing Date. In addition, the 2017 Credit Facility provides that we may increase the aggregate principal amount of the 2017 Credit Facility by up to an additional $100.0 million plus the amount that would result in our first lien net leverage ratio (as such term is used in the 2017 Credit Agreement) not exceeding 4.0 to 1.0, subject to us satisfying certain conditions.

Borrowings under the Term Loan B Facility were used on the Closing Date to (a) repay in full all of our and our subsidiaries’ outstanding obligations under the 2013 Credit ~~Facility~~Agreement and to terminate the 2013 Credit Agreement, (b) pay fees and expenses in connection with the 2017 Credit Facility, and (c) for general corporate purposes.

The 2017 Credit Facility is guaranteed on a senior secured basis by certain of our existing and future wholly-owned domestic subsidiaries, and is secured on a first priority basis by our and those subsidiaries’ assets.

Our borrowings under the 2017 Credit Facility bear interest on the outstanding principal amount thereof from the date when made at a rate per annum equal to either: (i) the Eurodollar Rate (as defined in the 2017 Credit Agreement) plus 2.75%; or (ii) the Base Rate (as defined in the 2017 Credit Agreement) plus 1.75%. As of March 31, 2019, the interest rate on our Term Loan B was 5.09%. The Term Loan B Facility expires on November 30, 2024 (the “Maturity Date”).

In the event we engage in a transaction that has the effect of reducing the yield of any loans outstanding under the Term Loan B Facility within six months of the Closing Date, we will owe 1% of the amount of the loans so repriced or replaced to the Lenders thereof (such fee, the “Repricing Fee”). Other than the Repricing Fee, theThe amounts outstanding under the 2017 Credit Facility may be prepaid at our option without premium or penalty, provided that certain limitations are observed, and subject to customary breakage fees in connection with the prepayment of a Eurodollar rate loan. The principal amount of the Term Loan B Facility shall be paid in installments on the dates and in the respective amounts set forth in the 2017 Credit Agreement, with the final balance due on the Maturity Date.

Subject to certain exceptions, the 2017 Credit Facility contains covenants that limit the ability of us and our restricted subsidiaries to, among other things:

The 2017 Credit Facility also provides for certain customary events of default, including the following:

•

certain events of bankruptcy or insolvency with respect to us or any significant subsidiary;

final judgment is entered against us or any restricted subsidiary in an aggregate amount over $15.0 million, and either enforcement proceedings are commenced by any creditor or there is a period of 30thirty (30) consecutive days during which the judgment remains unpaid and no stay is in effect;

any material provision of any agreement or instrument governing the 2017 Credit Facility ceases to be in full force and effect; and

In connection with our entering into the 2017 Credit Agreement, we and our restricted subsidiaries also entered into a Security Agreement, pursuant to which we and the Credit Parties each granted a first priority security interest in the collateral securing the 2017 Credit Facility for the benefit of the lenders under the 2017 Credit Facility.

~~Additionally,~~As previously reported in a Current Report on Form 8-K filed with the SEC on May 6, 2019, on April 30, 2019, we entered into an amendment to the 2017 Credit Agreement, ~~contains a definition~~which became effective on May 1, 2019. Pursuant to this amendment, the lenders waived any events of ~~“Consolidated EBITDA”~~default that ~~excludes revenue related~~may have arisen under the 2017 Credit Agreement in connection with our failure to timely deliver audited financial statements for fiscal year 2018, and amended the 2017 Credit Agreement, giving us until May 31, 2019 to deliver the 2018 audited financial statements.

On May 7, 2019, we filed our ~~participation~~Annual Report on Form 10-K for the fiscal year ended December 31, 2018, which Annual Report contained the 2018 audited financial statements. By filing our Annual Report on Form 10-K prior to May 31, 2019, we believe that we have complied with the affirmative covenants in the ~~FCC auction for broadcast spectrum and related expenses, as compared~~amendment to the ~~definition~~2017 Credit Agreement regarding delivery of ~~“Consolidated Adjusted EBITDA”~~the 2018 audited financial statements.

Pursuant to this amendment, we agreed to pay to the lenders consenting to this amendment a fee equal to 0.10% of the aggregate principal amount of the outstanding loans held by such lenders under the ~~2013~~2017 Credit Agreement ~~which included such items.~~as of May 1, 2019. This fee totaled approximately $0.2 million.

~~Derivative Instruments~~

Prior to November 28, 2017, we used derivatives in the management of interest rate risk with respect to interest expense on variable rate debt. We were party to interest rate swap agreements with financial institutions that fixed the variable benchmark component (LIBOR) of our interest rate on a portion of our term loan beginning December 31, 2015. On November 28, 2017, we terminated these swap agreements in conjunction with the refinancing of our debt under our 2017 Credit Facility, as discussed above. Our current policy prohibits entering into derivative instruments for speculation or trading purposes.

We recognize all of our derivative instruments as either assets or liabilities in the consolidated balance sheet at fair value. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship, and further, on the type of hedging relationship. The interest rate swap agreements were designated and qualified as a cash flow hedge; therefore, the effective portion of the changes in fair value was a component of other comprehensive income. Any ineffective portions of the changes in fair value of the interest rate swap agreements would be immediately recognized directly to interest expense in the consolidated statement of operations.

The carrying amount of our interest rate swap agreements were recorded at fair value, including consideration of non-performance risk, when material. The fair value of each interest rate swap agreement was determined by using multiple broker quotes, adjusted for non-performance risk, when material, which estimate the future discounted cash flows of any future payments that may be made under such agreements

Share Repurchase Program

On July 13, 2017, our Board of Directors approved a share repurchase program of up to $15.0 million of our outstanding common stock. On April 11, 2018, our Board of Directors approved the repurchase of up to an additional $15.0 million of our outstanding common stock, for a total repurchase authorization of up to $30.0 million. Under the share repurchase program we are authorized to purchase shares from time to time through open market purchases or negotiated purchases, subject to market conditions and other factors. The ~~stock~~share repurchase program may be suspended or discontinued at any time without prior notice.

In the three-month period ended March 31, ~~2018,~~2019, we repurchased ~~0.5~~2.1 million shares of our Class A common stock for an aggregate purchase price of ~~$2.4~~$7.7 million, or an average price per share of ~~$4.78.~~$3.65. As of March 31, ~~2018,~~2019, we have repurchased a total of approximately ~~1.5~~6.6 million shares of our Class A common stock for aggregate purchase price of approximately ~~$7.7~~$26.8 million, or an average price per share of ~~$5.28,~~$4.05, since the beginning of the share repurchase program. All such repurchased shares ~~acquired in the fourth quarter of 2017 were retired as of December 31, 2017. All repurchased shares acquired in the first quarter of 2018~~ were retired as of March 31, ~~2018.~~2019.

Consolidated Adjusted EBITDA

Consolidated adjusted EBITDA (as defined below) ~~decreased~~increased to $8.1 million for the three-month period ended March 31, 2019 compared to $6.9 million for the three-month period ended March 31, ~~2018 compared to $12.6 million for the three-month period ended March 31, 2017.~~2018. As a percentage of net revenue, consolidated adjusted EBITDA ~~decreased~~increased to ~~10%~~12% for the three-month period ended March 31, ~~2018~~2019 compared to ~~22%~~10% for the three-month period ended March 31, ~~2017.~~2018.

Consolidated adjusted EBITDA, as defined in our 2017 Credit Agreement, 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), non-recurring cash expenses, 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, acquisitions and dispositions and certain pro-forma cost savings. We use the term consolidated adjusted EBITDA because that measure is defined in our 2017 Credit Agreement 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), non-recurring cash expenses, 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, acquisitions and dispositions and certain pro-forma cost savings.

Since consolidated adjusted EBITDA is a measure governing several critical aspects of our 2017 Credit Facility, we believe that it is important to disclose consolidated adjusted EBITDA to our investors. We may increase the aggregate principal amount outstanding by an additional amount equal to $100.0 million plus the amount that would result in our total net leverage ratio, or the ratio of consolidated total senior debt (net of up to $75.0 million of unrestricted cash) to trailing-twelve-month consolidated adjusted EBITDA, not exceeding 4.0. In addition, beginning December 31, 2018, at the end of every calendar year, in the event our total net leverage ratio is within certain ranges, we must make a debt prepayment equal to a certain percentage of our Excess Cash Flow, which is defined as consolidated adjusted EBITDA, less consolidated interest expense, less debt principal payments, less taxes paid, less other amounts set forth in the definition of Excess Cash Flow in the 2017 Credit Agreement. The total leverage ratio was as follows (in each case as of March 31): ~~2018, 4.9~~2019, 3.1 to 1; ~~2017, 3.2~~2018, 4.9 to 1.

Consolidated adjusted EBITDA is a non-GAAP measure. For a reconciliation of consolidated adjusted EBITDA to cash flows from operating activities, its most directly comparable GAAP financial measure, please see page ~~26.~~27.

Cash Flow

Net cash flow provided by operating activities was ~~$3.6~~$14.3 million for the three-month period ended March 31, ~~2018~~2019, compared to net cash flow provided by operating activities of ~~$12.9~~$3.6 million for the three-month period ended March 31, ~~2017~~2018. We had a net ~~loss~~income of ~~$1.8~~$1.4 million for the three-month period ended March 31, ~~2018~~2019, which included non-cash items such as depreciation and amortization expense of $3.9 million and non-cash stock-based compensation of ~~$1.2~~$0.8 million. We had a net ~~income~~loss of ~~$2.6~~$1.8 million for the three-month period ended March 31, ~~2017,~~2018, which ~~was partially offset~~ byincluded non-cash items ~~including~~such as depreciation and amortization expense of ~~$3.5 million, deferred income taxes of $1.5~~$3.9 million and non-cash stock-based compensation of ~~$1.0~~$1.2 million. We expect to have positive cash flow from operating activities for the full year ~~2018.~~2019.

Net cash flow ~~used in~~provided by investing activities was ~~$165.6~~$4.4 million for the three-month period ended March 31, ~~2018~~2019, compared to net cash flow used in investing activities of ~~$2.0~~$165.6 million for the three-month period ended March 31, ~~2017~~2018. During the three-month period ended March 31, 2019, we had proceeds of $10.7 million from the maturity of marketable securities offset by $6.1 million spent on net capital expenditures. During the three-month period ended March 31, 2018,, we spent $159.4 million on the purchase of marketable securities, $3.0 million on net capital expenditures and $3.2 million on the purchase of intangible assets. ~~During the three-month period ended March 31, 2017, we spent $1.5 million on net capital expenditures. Excluding capital expenditures expected to be reimbursed by the FCC, we~~We anticipate that

our capital expenditures will be approximately ~~$9.0~~$20.3 million during the full year ~~2018.~~2019. Of this amount, we expect that approximately $5.8 million will be expended in connection with the required relocation of certain of our television stations to a different channel as part of the broadcast television repack following the FCC auction for broadcast spectrum, which amount we expect to be reimbursed to us by the FCC. The amount of our anticipated capital expenditures may change based on future changes in business plans, our financial condition and general economic conditions. We expect to fund capital expenditures with cash on hand and net cash flow from operations.

Net cash flow used in financing activities was ~~$9.9~~$13.5 million for the three-month period ended March 31, ~~2018,~~2019, compared to net cash flow used in financing activities of ~~$3.4~~$9.9 million for the three-month period ended March 31, ~~2017~~2018. During the three-month period ended March 31, ~~2018~~2019, we made a dividend payment of $4.3 million, a principal debt payment of $0.8 million and spent $7.7 million for the repurchase of Class A common stock. During the three-month period ended March 31, 2018, we made a dividend payment of $4.5 million and a principal debt payment of $0.8 million, and made payments of $2.2 million for taxes related to shares withheld for share-based compensation plans and $2.4 million for the repurchase of Class A common stock. ~~During the three-month period ended~~ ~~March 31, 2017, we made a dividend payment of $2.8 million, a debt payment of $0.9 million and received proceeds of $0.3 million related to the issuance of common stock upon the exercise of stock options.~~

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

General

Market risk represents the potential loss that may impact our financial position, results of operations or cash flows due to adverse changes in the financial markets. We are exposed to market risk from changes in the base rates on our Term Loan B.

Interest Rates

As of March 31, ~~2018,~~2019, we had ~~$298.5~~$245.5 million of variable rate bank debt outstanding under our 2017 Credit Facility. The debt bears interest at the three-month Eurodollar rate plus a margin of 2.75%.

Because our debt is subject to interest at a variable rate, our earnings will be affected in future periods by changes in interest rates. If ~~the three-month Eurodollar rate~~LIBOR were to increase by a hypothetical 100 basis points, or one percentage point, from its March 31, ~~2018~~2019 level, our annual interest expense would increase and cash flow from operations would decrease by approximately ~~$3.0~~$2.5 million based on the outstanding balance of our term loan as of March 31, ~~2018.~~

Prior to November 28, 2017, we used derivative instruments in the management of interest rate risk with respect to interest expense on variable debt required by the terms of our previous 2013 Credit Agreement. On December 16, 2013, we entered into three forward-starting interest rate swap agreements with an aggregate notional amount of $186.0 million at a fixed rate of 2.73%, resulting in an all-in fixed rate of 5.23%. The interest rate swap agreements took effect on December 31, 2015 with a maturity date on December 31, 2018. Under these interest rate swap agreements, we paid at a fixed rate and received payments at a variable rate based on three-month Eurodollar rate. The interest rate swap agreements effectively fixed the floating Eurodollar rate-based interest of $186.0 million outstanding Eurodollar rate-based debt. The interest rate swap agreements were designated and qualified as a cash flow hedge; therefore, the effective portion of the changes in fair value was recorded in accumulated other comprehensive income. Any ineffective portions of the changes in fair value of the interest rate swap agreements were immediately recognized directly to interest expense in the consolidated statement of operations. On November 28, 2017, we terminated these swap agreements in conjunction with the refinancing of our debt under our 2017 Credit Facility, as discussed above. Our current policy prohibits entering into derivative instruments for speculation or trading purposes.2019.

Foreign Currency

We have foreign currency risks related to our revenue and operating expenses denominated in currencies other than the U.S. dollar. Our historical revenues have primarily been denominated in U.S. dollars, and the majority of our current revenues continue to be, and are expected to remain, denominated in U.S. dollars. However, we have operations in countries other than the U.S., primarily related to our Headway business, and as a result we expect an increasing portion of our future revenues to be denominated in currencies other than the U.S. dollar, primarily the Mexican peso, Argentine peso and various other Latin American currencies. The effect of an immediate and ~~arbitrary~~hypothetical 10% adverse change in foreign exchange rates on foreign-denominated accounts receivable at March 31, ~~2018~~2019 would not be material to our overall financial condition or consolidated results of operations. Our operating expenses are generally denominated in the currencies of the countries in which our operations are located, primarily the United States and, to a much lesser extent, Spain, Mexico, Argentina and other Latin American countries. Increases and decreases in our foreign-denominated revenue from movements in foreign exchange rates are partially offset by the corresponding decreases or increases in our foreign-denominated operating expenses.

Based on recent inflation trends, the economy in Argentina has been classified as highly inflationary. As a result, the Company applied the guidance in ASC 830 by remeasuring non-monetary assets and liabilities at historical exchange rates and monetary-assets and liabilities using current exchange rates (see Note 2 to Notes to Consolidated Financial Statements).

As our international operations grow, our risks associated with fluctuation in currency rates will become greater, and we will continue to reassess our approach to managing this risk. In addition, currency fluctuations or a weakening U.S. dollar can increase the ~~costs~~amount of operating expense of our international ~~operations.~~operations, primarily those related to our Headway business. To date, we have not entered into any foreign currency hedging contracts, since exchange rate fluctuations historically have not had a material impact on our operating results and cash flows.

ITEM 4.

CONTROLS AND PROCEDURES

We conducted an evaluation, under the supervision and with the participation of management, including our chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this quarterly report. Based on this evaluation, our chief executive officer and chief financial officer concluded that, as of the evaluation date, our disclosure controls and procedures were not effective due to a material ~~weakness~~weaknesses in our internal control over financial reporting identified in our Annual Report on Form 10-K for the year ended December 31, ~~2017,~~2018, as described below.

Notwithstanding the conclusion that our disclosure controls and procedures were not effective as of the end of the period covered by this report, we believe that our consolidated financial statements and other information contained in this quarterly report present fairly, in all material respects, our business, financial condition and results of operations for the interim periods presented.

Material Weakness

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company's annual or interim financial statements will not be prevented or detected on a timely basis.

A material weakness in our internal controls existed as of December 31, 2017 due to insufficient accounting resources and ~~personnel to ensure proper application of U.S. GAAP and to effectively design and execute process level controls around certain complex or non-recurring transactions.~~personnel. Although the control weakness did not result in any material misstatement of our consolidated financial statements for the periods presented, it could lead to a material misstatement of account balances or disclosures. Accordingly, management has concluded that this control weakness constitutes a material weakness.

A material weakness in our internal controls existed as of December 31, 2018 relating to internal controls over our Headway business. Headway operates in multiple countries, uses multiple currencies and, prior to the acquisition, was a private company, not subject to U.S. accounting regulations applicable to public companies, with limited accounting and financial reporting personnel and other resources with which to address its internal controls and procedures. Following our acquisition of Headway, management implemented controls over Headway relating to a number of areas, including revenue, accounts receivable, accounts payable, operating expenses, intercompany accounts and income taxes; however, management has determined that these controls were not designed and/or implemented with an adequate precision level such that they would prevent or detect the reporting of inaccurate information, which in turn could lead to a material misstatement. Although this control weakness did not result in any material misstatement of our consolidated financial statements for the periods presented, it could lead to a material misstatement of account balances or disclosures. Accordingly, management has concluded that this control weakness constitutes a material weakness.

A material weakness in our internal controls existed as of December 31, 2018 over revenue in our broadcast and digital businesses. The design of certain revenue controls, primarily related to the approval of the entry of customer contracts into our operating system of record; the allocation of prices to advertising inventory under advertising contracts containing multiple stations and dayparts; and our reliance upon certain information received from third parties including, in particular, information relating to digital impressions delivered by third party digital platforms, would not prevent or detect the reporting of inaccurate information, which in turn could lead to a material misstatement. Although this control weakness did not result in any material misstatement of our consolidated financial statements for the periods presented, it could lead to a material misstatement of account balances or disclosures. Accordingly, management has concluded that this control weakness constitutes a material weakness.

Management’s Plan for Remediation

~~We are implementing a~~With respect to the material control weakness previously reported as of December 31, 2017, management has continued to test and evaluate the elements of the remediation plan implemented to ~~address~~date. These elements include the ~~material weakness previously identified in our Annual Report on Form 10-K for the year ended December 31, 2017. As part~~implementation of ~~this plan, we are in the process of testing and implementing a~~ new enterprise reporting software to provide additional system controls to free up accounting resources, ~~hired~~hiring additional accounting personnel in certain of our foreign operations to strengthen our accounting resources in these locations and further free up corporate accounting resources, and ~~are in the process of identifying~~hiring additional ~~accounting personnel~~employees to address complex accounting matters primarily related to the expanding geographic scope of our business operations, primarily our digital ~~media~~ operations.

~~We believe~~ Based on management’s review and the oversight of the Audit Committee, we have determined that ~~a remediation plan incorporating~~although substantial progress has been made in remediating this material weakness, we have determined that the ~~measures described~~weakness has not been fully remediated. In light of the additional material weaknesses discussed above, ~~as well as any~~management intends to further study what additional measures ~~we may identify and implement, will remediate~~should be introduced as part of the ~~previously-identified~~ongoing plan of remediation of this material weakness and ~~strengthen our internal control over financial reporting. We~~ will ~~continue to review our financial reporting controls~~further consult with the Audit Committee and ~~procedures.~~ others, as appropriate.

As we continue to ~~implement~~evaluate and test the remediation plan outlined above, we may also identify additional measures to address the material weakness or modify certain ~~elements~~ of the remediation ~~plan.~~procedures described above. We also may implement additional changes to our internal control over financial reporting as may be appropriate in the course of remediating the material weakness. Management, with the ~~input~~oversight of the Audit Committee, will continue to take steps to remedy the material weakness as expeditiously as possible to reinforce the overall design and capability of our control ~~environment.~~environment.

With respect to the other material weaknesses identified in our Annual Report on Form 10-K for the year ended December 31, 2018, management has discussed them with the Audit Committee and is in the process of identifying the steps necessary to design a remediation plan and remediate the material weaknesses.

Inherent Limitations on Effectiveness of Controls

Our management, including our chief executive officer and chief financial officer, does not expect that our disclosure controls or our internal control over financial reporting will prevent or detect all errors and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

Changes in Internal Control

In addition to any changes noted above to remediate the previously-identified material weakness, during the three-month period ended March 31, ~~2018,~~2019, we implemented changes in our internal control over financial reporting in connection with the adoption of ASC Topic ~~606, "Revenue from Contracts with Customers.~~842, "Leases.” These changes ~~included controls related to~~included: (i) monitoring the ~~collection~~adoption process and developing new disclosures required under the standard; (ii) performing an analysis of ~~data~~our leases; and (iii) implementing an updated information technology application for the ~~amounts that we disclose in the footnotes to our financial statements.~~calculation of ROU assets and lease liabilities.

PART II.

OTHER INFORMATION

ITEM 1.

LEGAL PROCEEDINGS

We ~~currently~~are subject to various outstanding claims and ~~from time to time are involved~~other legal proceedings that may arise in ~~litigation incidental to~~ the ~~conduct~~ordinary course of ~~our business, but we are not currently a party to any lawsuit or proceeding which, in~~business. In the opinion of management, ~~is likely~~any liability that may arise out of or with respect to ~~have a material adverse effect on us~~these matters will not materially adversely affect our financial position, results of operations or ~~our business.~~cash flows.

ITEM 1A.

RISK FACTORS

No material change.

ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Issuer Purchases of Equity Securities

On July 13, 2017, our Board of Directors approved a share repurchase program of up to $15.0 million of our outstanding common stock. On April 11, 2018, our Board of Directors approved the repurchase of up to an additional $15.0 million of our Class A common stock, for a total repurchase authorization of up to $30.0 million. Under the share repurchase program we are authorized to purchase shares from time to time through open market purchases or negotiated purchases, subject to market conditions and other factors. The ~~stock~~share repurchase program may be suspended or discontinued at any time without prior notice.

In the three-month period ended March 31, ~~2018,~~2019, we repurchased ~~0.5~~2.1 million shares of our Class A common stock for an aggregate purchase price of ~~$2.4~~$7.7 million, or an average price per share of ~~$4.78.~~$3.65. As of March 31, ~~2018,~~2019, we have repurchased a total of approximately ~~1.5~~6.6 million shares of our Class A common stock for an aggregate purchase price of approximately ~~$7.7~~$26.8 million, , or an average price per share of ~~$5.28,~~$4.05, since the beginning of the share repurchase program. All such repurchased shares ~~acquired in the fourth quarter of 2017 were retired as of December 31, 2017. All repurchased shares acquired in the first quarter of 2018~~ were retired as of March 31, ~~2018.~~2019.

ITEM 3.

DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.

MINE SAFETY DISCLOSURES

Not ~~applicable~~applicable.

ITEM 5.

OTHER INFORMATION

~~None~~We are providing the following information pursuant to Item 5.02 of Form 8-K in lieu of filing a separate Current Report on Form 8-K, since the due date for such filing falls within four business days prior to the filing of this report.

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

We previously reported certain information regarding executive compensation and pay ratio in our Annual Report on Form 10-K for the year ended December 31, 2018, which we filed with the SEC on May 7, 2019.

As a result of our expanding business operations and geographical scope, including those related to the acquisition of our Headway business, we experienced unexpected delays in our completion of the audit of our financial statements for the year ended December 31, 2018. That, in turn, delayed the review of fiscal year results and making 2018 bonus decisions by the Compensation Committee of our Board of Directors, or the Compensation Committee. On May 14, 2019, the Compensation Committee approved discretionary bonuses for calendar year 2018 in the amount of $250,000 to Walter F. Ulloa, our Chief Executive Officer, $225,000 to Jeffery A. Liberman, our President and Chief Operating Officer, and $176,000 to each of Christopher T. Young, our Chief Financial Officer, and Mario M. Carrera, our Chief Revenue Officer until January 2, 2019.

As a result of the bonus granted to Mr. Ulloa, the annual total compensation for fiscal year 2018 for our chief executive officer rose from $2,625,308 to $2,645,308, and the pay ratio rose from 63.2 to 1 to 69.8 to 1. Given the different methodologies that various public companies are using to determine an estimate of their pay ratio, the estimated ratio reported above should not be used as a basis for comparison between companies.

ITEM 6.

EXHIBITS

31.1*		Certification by the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934.

31.2*		Certification by the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934.

32*		Certification of Periodic Financial Report by the Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS*		XBRL Instance Document.

101.SCH*		XBRL Taxonomy Extension Schema Document.

101.CAL*		XBRL Taxonomy Extension Calculation Linkbase Document.

101.LAB*		XBRL Taxonomy Extension Label Linkbase Document.

101.PRE*		XBRL Taxonomy Extension Presentation Linkbase Document.

101.DEF*		XBRL Taxonomy Extension Definition Linkbase.

*	Filed herewith.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

ENTRAVISION COMMUNICATIONS CORPORATION

By:		/s/ Christopher T. Young
		Christopher T. Young Executive Vice President, Treasurer and Chief Financial Officer

Date: May ~~9, 2018~~15, 2019

3739

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common stock	EVC	The New York Stock Exchange

	2018			2017
Accumulated other comprehensive loss as of January 1,	$	(0.1	)	$	(3.0	)
Other comprehensive income (loss)	$	(1.2	)		0.9
Income tax benefit	$	0.3			(0.3	)
Other comprehensive income (loss), net of tax	$	(0.9	)		0.6
Accumulated other comprehensive loss as of March 31,	$	(1.0	)	$	(2.4	)

	Foreign Currency Translation			Marketable Securities			Total
Accumulated other comprehensive income (loss) as of December 31, 2018	$	(0.4	)	$	(1.0	)	$	(1.4	)
Other comprehensive income (loss)		-			1.0			1.0
Income tax (expense) benefit		-			(0.2	)		(0.2	)
Other comprehensive income (loss), net of tax		-			0.8			0.8
Accumulated other comprehensive income (loss) as of March 31, 2019		(0.4	)		(0.2	)		(0.6	)

(in thousands)	2019
Remainder of 2019	$	8,017
2020		10,785
2021		8,526
2022		7,176
2023		5,583
2024 and thereafter		31,763
Total minimum payments	$	71,850
Less amounts representing interest		(21,150	)
Present value of minimum lease payments	$	50,700

		Page Number
	PART I. FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS	4
	CONSOLIDATED BALANCE SHEETS (UNAUDITED) AS OF MARCH 31, ~~2018~~2019 AND DECEMBER 31, ~~2017~~2018	4
	CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE-MONTH PERIODS ENDED MARCH 31, ~~2018~~2019 AND MARCH 31, ~~2017~~2018	5
	CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) FOR THE THREE-MONTH PERIODS ENDED MARCH 31, ~~2018~~2019 AND MARCH 31, ~~2017~~2018	6
	CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED) FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2019 AND MARCH 31, 2018	7
	CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE THREE-MONTH PERIODS ENDED MARCH 31, ~~2018~~2019 AND MARCH 31, ~~2017~~2018	78
	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)	89
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	2223
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	3334
ITEM 4.	CONTROLS AND PROCEDURES	3435
	PART II. OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS	3537
ITEM 1A.	RISK FACTORS	3537
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	3537
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	3537
ITEM 4.	MINE SAFETY DISCLOSURES	3537
ITEM 5.	OTHER INFORMATION	3537
ITEM 6.	EXHIBITS	3638

(in thousands)	Three Months- Ended March 31, 2019
Cash paid for amounts included in lease liabilities:

Operating cash flows from operating leases	$	2,800
Non-cash additions to operating lease assets	$	315

(in thousands)	Amount
2019	$	10,432
2020		10,677
2021		8,507
2022		7,560
2023		6,137
Thereafter		38,515
	$	81,828

(in thousands)	Amount
Operating lease cost	$	2,397
Variable lease cost		421
Short-term lease cost		107
Total lease cost	$	2,925

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company