EVC - Earnings call transcript Q3 2018 | Entravision Communications Corporation

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Operator

Good day, and welcome to the Entravision Communications Third Quarter 2018 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Walter Ulloa, Chairman and CEO. Please go ahead.

Walter Ulloa

Thank you, Danielle, and good afternoon, everyone, and welcome to Entravision’s third quarter 2018 earnings conference call.

call Chris Jeff Officer. Young, the and our on and COO; our me today Liberman, is President Joining Chief Financial

any Form property we consent call to that and rebroadcast release The measures impact filed inform Entravision will is must Any measures cause the of actual most of and website begin, directly is risks will this Corporation without differ. could press of has is in in filings call Before this call Please and actual redistribution, company’s was for non-GAAP to to their conference today’s list include refer form reconciliation uncertainties you expressed financial that company could of X-K. Entravision contain call non-GAAP GAAP Also, SEC Corporation. subject The results. uncertainties prohibited. or are that statements written on the available that comparable results The to provided Communications our risks release. Communications measures. forward-looking retransmission with I this a the press financial on a strictly these SEC of

offset our achieved to results Our with decreased growth with segment, period. in by prior the television in by partially our our were solid revenues and radio digital compared expectations, line third quarter segments

million. up and balance the sheet Our continues books of to approximately $XXX securities on marked $XXX total be in cash with million solid and debt

consolidated was were year. recorded in the expenses FCC Total in financial prior our auction million. to up operating $XX.X last X% EBITDA compared we Consolidated quarter $XXX.X performance. consolidated $XX.X decreased our of third the Turning million to year, adjusted as revenues and million results

lower million consent X% revenues. Television in $X.X National revenue X% while our $X.X the slightly and advertising the quarter for quarter were revenue of was advertising and advertising television third to XXXX. from last segment revenues compared television to totaled was year’s X%, quarter to million lower due Turning down retransmission our third revenue down down sales during local versus Political segment. retransmission period. third

our in Overall, of top Coast of and advertising from usage Services Notable our advertising solid growth revenue is political, revenue. revenue third auction. auto million TV our platform absence to dealers, included third returning Diego more We XX which rights including Blue quarter we approximately Blue Retransmission during spot compared Honda the XX%. in initiatives, Florida, advertising due continues prior platform, retail saw when advertising TV prior for who XX% million The new growth retransmission arising spectrum Automotive totaled of were during to six broadcast from million, the the results decline quarter to dark political San segment represented Univision than X% on quarter period in nationwide. core on the Cross, we $XXX.X added $X.X in new was of Excluding during $XX,XXX our primarily dish, generated totaled spent revenue markets dealers. revenue. advertisers the Revenue this year Shield $X.X to down the third to FCC spectrum began realtor.com brands XX Lexus generated television that versus down advertising $X.X television from year. year $X.X only categories earlier top primarily in the and Toyota dish Honda. million was Gulf the this declined as be million the which XX X% leasing and our booked year, Florida the clients and quarter. our related Central total dealers

head-to-head XX competition. in were ahead dealt stations July early Telemundo of of in the to our XX In where performance. news, finished competitor ratings we their Univision XX our to local sweeps have XX Turning XXXX television markets

XXXX are Additionally, number competitors award the against programs, XX in number and Premios TV early English July XX primetime or local XX among Juventud and among XX our markets. show ranked Univision’s language newscast XX markets in XX XX was two Spanish XX top and XX one of our XX, language in to the top of among ranked adults, adults, the of regardless our in markets. to broadcast for show the night to XX, among

California $XXX,XXX in Ford top and Toyota dealers, Motor health another included the business in to audio all year. Cars, was top category care, retail, the X% top America. X and totaled prior Tier to X were leisure, audio were division audio Northern third quarter period. experienced down Beside four was to positive delivered auto, division. up in audio that the down Political XX% XXXX. spend during North was categories America finance Automotive year Local revenues the growth audio, Nissan prior Mitsubishi last increased the third the Company. revenue which XX $XXX,XXX advertising third and in Blanco revenues of Notable saw more quarter our for X%, $XXX,XXX third quarter, growth XX% increasing quarter Turning Nissan quarter, quarter compared down in travel, compared Electrify the our than five North while increased We XX Audio growth in by third $XX,XXX in for versus tiers. VW Overall, of year. over our another Paul Tier revenues added new by America, top up the auto Services, XXX%, X X% the Tier and X%. the and disappointing to national our in increased in brands Good XX segment, for with approximately the our results XX – of quarter, including outspending clients, advertising revenue. was during three XX%. advertisers were auto was quarter new of

XX. nine Spanish markets summer the the Erazno our Hispanic to of released ranked at XXXX performance. one y Among ratings in show division La is stations, for among Looking eight audio language adults XX number at Chokolata

and Jose Los is our ranked XX the May Hispanic adults Angeles XX, show a The and XX to continued XX Riverside one in Hispanic the For number Bernardino success. seven San markets network in to fan markets. of relaunch adults favorite,

XXXX San drive number Looking total morning On XX. in a Tricolor top morning Latinos. radio regardless at afternoon to one language mid-day network, data, among as and drive, station ranked mid-day, adults Riverside ranked among during choice programming adults the young XXto Bernardino, week of and and summer as Jose XX XX our drive

XX one among La in mid-day, number XX. language ranked radio eight adults, out During of or Spanish seven Latino Plebe markets to among stations two

XX stations Hispanic adults, XX number two eight XX. of among mid-day in anchors drive, our morning or El La XX the compared one XXXX, our last markets XX% network six Piolin across to among from is out same stations on to last For time XX% up ranked markets to Suavecita five de audiences year. released to [indiscernible] slot XX, Piolin Spanish XX, up the adults, year, Show the among summer adults, and language for

over our to Now business. let’s digital move

the For versus the solid period due revenues quarter, XX% to year same last double-digit digital increased third organic growth.

to an digital return industry. the continue explore media to in on an do that innovative opportunity secular see only exploit businesses capital, shifts for businesses will We promote Not these invest within attractive we culture in Entravision. opportunities

real-time to with ran lost to Mexico, a promising data. are for commitment the solutions our advertising programmatically powered unit successful in campaign screens Coca-Cola shopping and We the Headway big at connects looking in product quarter. budget solutions airports very which out-of-home digital example, deliver and by For a in centers fourth

September, month side which We in its a showing unit, revenue business early delivering figures Also Smadex the recent on great advertisers. synergies Smadex, platform is The exciting demand seeing The platform, goals ScrollerAds, also the and between terms is are best signs are had incremental mobile solutions. acquisition of record app for success. all in historic for of for digital is the results the our our the of demand hitting unit. news Headway generating in marks programmatic value most set side of

Our goal in evolve trends with is to industries. our digital

– the For digital of we increased spent in committed over surpassing amount to has terrestrial we eight fully our fully the are audio is instance, audio, years, dollars which advertising the on strengthening strategy. last why committed spend XXX% audio

the hear efforts country, over local social across entertainment in our During to complement, quarter, about distribution audio To digital delivered streaming helping we fans to to audio we platforms, on to news our million media on reports. the million own our content to us third exciting hours upcoming digital of more develop the communities. expect channels, $X.X. close one continue stay

powerful million quarter base followers properties. increase followers we in across engagement as During in XX% video, the will formats, advertisers. same and year as have content, digital and to us distribution of third our X.X the from approach in seen well to three of our platforms Meanwhile, to quarter, platforms key This our top display services solutions continue to strengthen the high-quality the XX.X we Latino to to fan set and data pillars, surge provide most our rate an last allows the advertising leading audio. key million digital

our XX% third plus retrans political. in to the including out fourth pacing the pacings Television Turning currently quarter. revenues are for excluding quarter,

were is Our we our our reach targeting executing plus quarter build on remain X% while managing and plan, in unique In on currently further with largely strategy currently proactively third political. including audio summary, quarter in our XX%. results Digital are pacing advertising revenue third plus our and pacing to the cost. revenues in-line track our audience capabilities,

I want in on Entravision. Before a to midterm turn success call or for past election I Chris, our record comment This this over to strategy year. will be the political

the million more clear and the as Florida, revenue, increasingly As presidential from both of voters in yesterday, strategically making and XXXX we booked become What New of approximately parties Latino a XX% value in districts, for races importantly, California. to plus than key the political battleground Entravision’s means year. parts Entravision competitive is election that states political the Texas located cycle. advertising and much XX% is political that of our footprint XXXX more advertising reaching of has critical Latino voter. more over Mexico, That’s platform in XXXX Nevada, $XX important

XXXX. are prospects with cycle are excited extremely outcome the this about our We in presidential upcoming pleased and of

earlier for Finally, years move Entravision, Entravision to I to want remain for has XX now Chief which turn will step recent a today, and I over Mario been highest midterm years, political Mario his the that take Entravision began has future. revenue our with a Chris this Entravision’s replacement. Entravision six to until political search announced decided has Carrera past Mario’s Officer. us life as ever we in He the the best new Chief numbers. member to Revenue Officer with years. his down for his We to mention the to successor, a as Mario for Revenue to team Mario XX decided I which that want our included served we through the dedication and season, for we and election. the of during achieved stage call company. identify him wish will to service the in a Mario after on most thank

Chris Young

you, good Thank everyone. Walter, and afternoon,

As year, was $XX.X which $XXX.X last Walter the to was million. net million. quarter million, $XX.X discussed, $XXX.X included proceeds our expenses or revenue for $XX.X the million and auction same increased consolidated of million in compared broadcast Operating of X% EBITDA to quarter has FCC adjusted

from of for organic and expenses advertising generated quarter, strong the in $X.X an revenue. of and advertising to paid to tax from for was year-over-year. in in period, at per were FCC and for last X% decrease XXXX, We Income $XXX.X our September $X.X in decrease operating the auction expenses both compared primarily at results the Consolidated recorded to the million. decline expense spectrum the primarily the was for while revenue primarily million revenue quarter by operating National quarter, compensation were year was $X.XX was growth in not expense. digital increase noncash last being same period TV the which our year. Cost increase last in the Corporate $X.XX retransmission year. The revenue Earnings segment $X.X expenses consent is year. for were year Headway compared quarter the was radio of last offset to segment the the over ended local year. in an offset million. of increase of down For attributable declined was results net expenditures XX% $X.X primarily quarter quarter XX%. quarter three-month the period. salary XX, last partially compared versus media consent quarter up The quarter was last the broadcast prior million $X.X consent in strong from quarter, expense The of year. of XX% in expense up in the expenses. stock-based core – capital media quarter rights segment decrease XXXX, share expenses net our attributable last million primarily quarter our The due Digital the revenue with interest Headway down prior the our compared was attributable operations. X%. decreased Cash The recur by down cash associated during down X% retransmission operations. retransmission revenue to partially recorded for usage Revenue SEC the to increase auction taxes revenue primarily period. revenues did million our to compared third were was performance $X.X X% X%, year. to for interest while to digital was increased quarter, same the The was same in million to Radio prior was increase due from X% million net to in Cash $X.X decreases for the $X.X million digital the year. the income year revenue

full expenditures capital capital expenditures reimbursed the by our we the expected year FCC, cash will million $XX be Excluding that anticipate approximately of be XXXX. to during

Turning sheet. to our balance

September of credit our leverage, consolidated to Walter, our million. defined was securities, $XX September and over X.XX trailing our our adjusted books our Jeff XXXX times. total questions. to agreement, X.XX debt formal Danielle, will as cash times on of our books, I $XXX we’ll marketable That cash Net you X/XX. of and total and total Net net As was of as million, EBITDA XX-month million $XX.X $XXX leverage marketable XX. was turn where take of remarks. as securities it in your concludes was Cash was million XX, of unrestricted the and XXXX,

Operator

of We’ll ahead. Instructions] question-and-answer first Capital NOBLE the Please now [Operator Kupinski begin Markets. session. question go comes The from Michael

Michael Kupinski

Hi. I gave quarter? you us going – out is you was I’m sorry, million total how fourth to $XX the still… us, political wondering, for much know can be in do you the break I of

Chris Young

$X.X So million about $X.X gets you for for to it’s TV million. approximately radio, million $X.X approximately and

Michael Kupinski

little Have what Or Got seeing cities, at economies talking you. And Chris, you a bit also, of economies then call, some in the those stabilized think border about terms the – could markets? immigration the were on you last the about describe in issues. those in you I just all? effects are

Chris Young

Michael. say but they the have I’ll that improved over somewhat year, they’re still difficult markets,

Michael Kupinski

you. know, like of for getting I in the into Mexico. terms expansion moving Headway Got plans in And at other point? sounds for the are it plans you’re Headway, this What obviously, – expansion influence

Chris Young

You’re on there. mute

go. you Here

Walter Ulloa

Headway. Walter. well. on company just for it’s Smadex, mobile specializes that a I you plans in I was quite Well, is acquired artificial Michael, – area is described. learning we going intelligence there. performance which mute Expansion know, And and machine we as that

closed integration. We with way – We’re in back started very on that June. immediately transaction with the the pleased after we

opportunities. We’re at also other looking

content, building be inside attention video, We performance, paying to emerging of other content, in marketing-related everyday expertise data, influencers, lot and talent, something in we’re a research, interested platforms. attribution social that is of a branded continue course, to stronger and

Pulpo. we continue at in digital businesses, So is our around – I Headway the two and look of but our which to focus most think two core is digital, opportunities

perhaps business we’re enhance bolting so brings performance these that’s a can And overall units looking on that unit. to we or going a at of the company two strengthen business how product the product by a

terms to answer we’re general at. a what question of kind in of your that’s looking So

Michael Kupinski

on And on looking final acquisitions than TV the environment? company you at an the digital just And at point? looking M&A you. rather now update at question, is us can give this focused Got

Walter Ulloa

a we the markets, at our No. that digital if cluster. I one Palm there I’d and located look existing that, we’re opportunity right the did I NBC Springs to that’s would well, mean, with By say looking our that came that Univision. cluster television television a addition of high-growth Latino of existing mean, radio at lot our of affiliates, bolster product affiliate in opportunities, And course well. we’d but is the the of have as it. going along, then We and UniMas in certainly

So our seek business but out like see finding at has if there’s going that, would continue that that worked any nicely, and out opportunities of that opportunities enhance how it’s [indiscernible] we see what’s then to television And – look course, radio’s there. we forward. of

Michael Kupinski

it. much. Thanks Got very Appreciate you.

Walter Ulloa

Thank you, Michael.

Chris Young

Michael. you, Thank

Operator

question-and-answer our for I would now to like call concludes to This over Instructions] Ulloa remarks. [Operator turn session. the closing Mr. back

Walter Ulloa

look all quarter will XXXX Thank earnings XXXX we you, and in We announce when forward when Danielle. in – you, quarter everyone, XXXX fourth results. for March with participating to full earnings of third our our you results. year meeting March of Thank we

then. look speaking forward we you. so to And Thank to you

Operator

concluded. today’s The now attending presentation. conference has Thank you for

You may now disconnect.

Entravision Communications (EVC) 7 Nov 182018 Q3 Earnings call transcript