Earnings call transcript Q4 2022

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Operator

Good day, and welcome to the Entravision Fourth Quarter and Full Year 2022 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Kimberly Esterkin in Investor Relations. Please go ahead.

Kimberly Esterkin

Thank you, operator. welcome Conference Fourth Call. and Year and everyone, Earnings XXXX afternoon, to Quarter Entravision's Full Good

Liberman, Operating Joining Chief Chief Jeffery Executive today Officer and me are and Financial Chris Officer; Officer. Young, Interim President Chief and

that Before risks and call that contain impact conference that SEC could will refer could that for I and cause we list to to forward-looking filings risks to differ. must Please begin, results. subject you this inform are uncertainties uncertainties statements of actual a actual results Entravision's

This the retransmission expressed Corporation is form call property call Communications Corporation. of prohibited. the Any or in Entravision redistribution, written without this Entravision strictly Communications consent of rebroadcast of is any

financial will measures. on comparable non-GAAP financial most filed call press provided GAAP Form The measures this SEC in a website The company's include with available to these is measures the press release on today's the has Also, was non-GAAP and release. the company reconciliation of X-K.

the Chris will call I over turn Young. to now

Chris Young

Thank fourth quarter afternoon, you, Entravision's year earnings XXXX us full everyone. you call. joining Kimberly, We and for appreciate and good

want reach to advertising XX built In that geographic tremendous begin, global solutions, portfolio, countries media passing team pursuing and and and to of Walter technology Founder Entravision that vision been X strong to it I leading months a and media since our we Before CEO, growth. our company. expanded Walter's leadership Ulloa. that vision, has tragic our build has achieved a the was transformed sudden note

duties in CEO. for is in addition full-time with search of as has my me CEO role transition, the the of Board Entravision's During maintaining Board a interim currently CFO. The of Directors this period engaged to entrusted

focused for we partners successful and moving are on value long-term our shareholders. as are the We our strategy to deliver and ever forward, of execution as

record. Digital, up by represented strong. XX% XX% was which XXXX compared revenue radio company begin revenue, year-over-year consolidated a year-over-year. remaining $XXX.X up were up and the XX% revenue, year XXXX. of our respectively, very which Television results, were XX% Total our and which million increased and by new discussing of XX%, total full X% Let's of to for comprised made segment revenues, down

was record year. adjusted cash $XX.X the million flow of our year, EBITDA. over Consolidated the a of a million XX% $XXX.X also up conversion XX% for Free for EBITDA year adjusted or consolidated last rate totaled

the per For year, were in $X.XX earnings to XXXX. compared share $X.XX

February, share. share our dividend the our With increase such This Directors per in pre-pandemic doubling Board approved levels. in returns to dividend, $X.XX the increase stellar per $X.XXX from annual an to quarterly performance, of dividend payment

With speak to background Jeff Jeff? the year, that a further and to Liberman, turn over President I'll fourth Chief as Entravision's on call now Operating the the on quarter. Officer,

Jeffery Liberman

been are decades we Having team, our since became Entravision he results X over I side-by-side the Thank Stock I've today. such proud of part and for with a New certainty, August time, for most Exchange with management company you, listed working long a Like be our of worked Walter. reporting Entravision on of publicly together Walter XXXX. Chris. known can of would York Walter in say financial I

was Digital, Let's comprised year-over-year. quarter's XX% to for our year, XX% similar improving revenue $XXX.X begin quarter, of Digital full which fourth largest the revenue. with fourth the revenue segment, million

content solutions with with countries, results-driven suite for digital generation, full services. clients. a our including and solution solutions brand audio provides OTT services television offering local existing performance-based audio, our digital now In the marketing XX production. of services transactional include digital digital complements These United and along lead Entravision awareness services branded States, video traditional in

Twitter, have such on platforms yet countries reach achieved reach partnering and our TikTok States. to premier audience superior organization technology. digital solutions-based these has Outside strong platforms and sales U.S., cutting-edge developing results have with in United results unique for clients the By our Meta, the extensive have Entravision our where in they based the and provides Spotify, as established

partnership growth. performed revenue our improving Am, Smadex, year, which well the across with the with delivered Interactive known driven programmatic business Entravision commercial is results previously platform companies All largely quarter over of our Cisneros as with increasing our again multiple most as the by for X% prior once strong revenue notably quarter, ad during also our approximately XX% a grew we Entravision verticals, Lat fourth gaming representation digital apps. experienced business Meta. year-over-year

Revenue was countries MediaDonuts, in revenue strong with mobile XX% success saw of now Southeast Twitter by driven performance along Entravision improved and operation, XX TikTok, the our Asia. growth user Asia as largely servicing formally acquisition year-over-year. known with

Entravision Turning increase to formally prior as our XX% known fourth to Digital, XXX achieved TikTok Africa, for revenue the quarter Africa. year, by relationship. in a the driven compared

is Phil to Phil our Middle Officer. team enhancing the former our Mobile our December, sales Gontier He global world. Smadex's Twitter Europe, we welcomed in Beyond accelerate of digital Revenue to product In growth around the Chief offerings, Africa. our and continue for will leading Smadex continue revenue sales Head the as East leadership. broaden by

prior from Let's the compared now million advertising turn comprised the strong to for period, XX% QX, the political fourth to revenue. $XX.X Television which XX% in benefiting quarter. television revenue year's revenue of segment was up

revenue Univision affiliates, total Orlando, up discontinued was Washington D.C., X television Tampa year-over-year. and XX% the Excluding

due the television division incremental quarter. cash year-over-year, year-over-year. margin and core core decreased for XX%; quarter discontinued national these Excluding affiliates. local down totaled decreased the $X.X to X and revenue revenue Operating for X% which XX% for X%; the flow our political increased revenue affiliate was core the million, revenue Retransmission revenue, Univision X% television mainly markets was

bringing total total, the of the totaled $XX.X million in $XX.X $XX.X revenue television revenue record to this $XX.X the in quarter, and year. million fourth a political our revenue generated year. Political political million for QX Out of million for

year-over-year, by revenue political quarter, totaled revenue. $XX.X again, for approximately Lastly, our consolidated fourth the Audio XX% remaining driven audio revenue. increase X% segment quarter of largely of ad comprised the million fourth an

revenue Even our fourth quarter. XXXX. flow more incremental core quarter X% a in operating was of was cash million Excluding political the of increased XX% the versus XXXX, margin, record in quarter impressive revenue of $X.X fourth audio which the audio

thank around turn financials fourth we'll entire the for call and first quarter back to to in and the quarterly detail. strong year, team want and to I the our quarter world further now a Chris pacing discuss

Chris Young

from fourth Thanks, of Jeff. million, Revenue the $XXX.X increase for QX of an XXXX totaled quarter XXXX. XX%

of segment million pro quarter, revenue up forma the on Jeff XX% a for just our and the QX as compared year-over-year in As totaled fourth in up basis mentioned Digital breakouts, segment, $XXX.X XX% XXXX. to

$XX.X year-over-year. fourth quarter, the revenue XX% segment, up TV total million our was in For

audio which $XX.X our was for revenue XX% QX the Lastly, compared in segment, million totaled fourth XXXX. up quarter, to

totaled million for noncash increase revenue XXXX last increases expenses to expenses salaries. the passing an driver of up year. prior in $XX.X upon related of growth XXX% compared the year primary $XX.X severance stock-based quarter the in in incurred Officer, Operating our million, $XX.X fourth expense the expenses the in period, same Corporate compensation primarily late The increased million due and was increases in in and salaries. Executive quarter million Chief variable quarter to XX% from $XX.X to to of by our

earnings the a from Consolidated $XX.X million in to rate adjusted XX% or release, the adjusted $XX.X million in cash quarter of EBITDA the Free quarter, totaled $XX.X XX% $XX.X compared flow, year was up period. prior year in prior EBITDA. million for as million fourth conversion our defined of

quarter per the Net a earnings fourth stockholders in the $X.X per income same compared negative was compared recorded for Diluted million in common $X.X period. share attributable share the $X.XX a period to $X.XX to XXXX year. positive year negative last million to a prior were

unvested for noncash contingent to year. of $X.X upon foreign charges various and severance the that broadcasting to for $X.X in income from of $X in impairment in $XX.X increase full original charges year. we primarily a total our the million the noncash the and quarter the in million Mr. said, impacted of impacted net important outperformance value RSUs note for to digital With platforms incurred fourth resulting death; charges related is his $X.X to charges fair charges quarter it million acceleration following: quarter $XX.X that full the million that $XX.X compared year, an Mr. assets; the expectations; of These million onetime million the relating Ulloa's consideration of that passing; in the and million also full and relating losses in finally, $X.X million $XXX,XXX in Ulloa's currency approximately to cash our included

for in of fourth million the adjusted these $X.XX for and paid last full fourth quarter was $X.X onetime same million $X.X income Excluding in year. to the quarter the compared taxes for Cash was the EPS quarter year. $X.XX charges,

million paid XXXX. paid $XX.X cash year, million XXXX in compared $X.X totaled income For taxes the to for in

same Net capital million million for from capital $X.X full $XX.X up quarter year. million of bringing interest expenditures $X.X in from expenditures year Cash last million totaled XX% up quarter, million the XXXX. to was expense $X.X for XXXX, our $X.X for the QX in

XXXX, total total Turning leverage, fourth credit X.Xx. as to net Net Total of debt our total leverage December X.Xx cash end as $XXX.X our the Cash marketable marketable of XX, million, as in securities, totaled our securities $XXX of sheet. of our quarter. million. and balance agreement, was was and defined was

to for the XXXX. quarter of Turning first our pacings

year. XX% over today, a our revenue from plus segment currently digital As is of pacing prior at the

TV revenue minus X% year excluding prior quarter booked in thus over Our core TV the segment a political plus is at with the pacing period, pacing X%. a far

year is Lastly, plus year All at political over is pacing audio minus revenue minus to total our at prior audio compared period last X% a revenue a the X%. excluding core XX%. in, our pacing segment with pacing a

we macroeconomic of As the globally. another to of to Entravision despite growth choppy for positioned XXXX, expand remains the remainder we conditions, ahead well look operations as year prevailing our continue

benefit a to offerings global to team, further us seek customer flow expect will a sheet, enhance digital base. balance opportunities the continue generation provide of to the growing solid you our and strong talented that we cash can out With management

digital growth Beyond acquisitions or you platform. should from continued strategic expect also our to see investments,

launch with to this Ghana, Our Honduras, XX El recently platform overall in months. Meta Salvador, business validated in strengthening operations particular continues the and for and past be the Mongolia Iceland through relationship model over announced of

XXXX was of our by summarize, Co-Founder, death and To Walter off the Ulloa. unfortunately growth that of an for sudden year capped was Entravision CEO, Chairman amazing

thank platforms, his to we take moment Walter's loss, our significant highly to Entravision's our difficult legacy all A was and we all As employees, of Board including to of leadership, their reflect stakeholders, talented time. support through continue across Walter's business continue our during to your of of shareholders our for want will part installment I succeed. this a and on leaders

to Operator? open questions. we'll the With that, up call

Operator

NOBLE from from [Operator Markets. The Michael Instructions] Capital first today Kupinski question comes

Michael Kupinski

some up of couple on us any earn-outs, update acquisitions? some quarter. of be great on up may are you Congratulations -- there the that a rolled earn-outs can coming past Chris, that now possible the A questions. additional for of you've

Chris Young

have payments something as is are the that as are single there We'll And million And far April. There will year. earn-outs in also April. are as payment about payment that's $XX a it in far coming then be addition up low in for to that, as concerned, the in digits concerned. the

Michael Kupinski

Got have you. you that about acquisitions. a you bit talk know you M&A can little talk then the that? little Can been bit And about making a environment? I

Chris Young

existing I we it. Yes, you're smaller continue digital will transformative, work again, deals And pipeline busy that through be front. talking that robust, our about that's mean it's been not and portfolio. a we've pretty you're talking complementary on got to to

Michael Kupinski

you like -- want there. then markets going what's Latin you. you're going on you of on? adding And about give see chat kind in some we just Can a little and an Cisneros, with it the maybe update color Got of rate Can just on growth if deceleration additional just of us on Facebook, of what us some there. give revenue bit to some sounds a I And America? flavor you kind what's know

Chris Young

after QX little looking I than mean that a Am better gave pace it's Cisneros did did We're to still we in a XX. So X. right? X that plus in plus they QX. mode, Lat growth do plus in QX,

stable course, of for we've that will the got region be it's new of working growth also that. a still the incremental that So of on we're on Facebook. markets And relatively top world

Michael Kupinski

you obviously little growth. don't can give I a it but this, very can new driving What's markets? you if you Chris, bit about to still the that? pacing driving us are if just little the some percentage XX% talk can strong, if is a first the XX% quarter. And of of chat bit new what Is markets about just And know us

Chris Young

growth. The contributing you. to markets to over new the Sorry, talk I aren't didn't really mean

the point. the environment took broadcast -- With talked you X digital the carrying -- XX. side. basis, forma like got digital Local side. and $XX digital soft factored growth on the ahead. growth has concerned choppy, the if plus far as show pushing said, pro and plus on clearly gotten looks pretty that's acquisitions a the it's that plus more It's got that And clearly, XX-ish pace about still we've If right we're our National resilient. now. we driving through you million is a in got We've all a about is took still XX We've plus broadcast this factored on at that But -- is on but a us. as a minus that in

Michael Kupinski

And you. national. question next about then Got my was

TV a as us and core national If you local your flavor of of can give in audio versus well. just kind

Chris Young

Yes.

X, For we've folks we're minus been a numbers TV, plus national channel of same from XX. checks is hearing that doing, space. coming And other in is the the but local out the all

X; you kind of health So pacing And everything for plus services, for at if mixed at bag. a which is minus care, QX; and XX our look, XX. a auto, top plus you look else is got then X broadcast, category

a So go pull ones local national branding this but are government-sponsored not it's the tide, that with to resilient. -- back first that campaigns those And is the but clearly, national, remains because economy atypical that this is for out seeing. look, slowdown

Michael Kupinski

give can growth about little us Got you thought expense quarter? you. And the of in then kind a

Chris Young

in growth TV plus talking higher then little And are here you're the we moving to in so bit usual X. the that radio radio quarter, the process expense about because fourth a The is of was drove corporate, Yes. it. than folks

growth. variable revenue associated both got variable got revenue expenses on with the the expenses You've associated sides growth, with while you've

Michael Kupinski

should the the at can And going that rate how we run of about you look quarter? terms talk in first into

Chris Young

that of guide that We subdued. more like that there is don't will right? of be because the bit be will And Yes, little the doing. function generally a than will revenue, radio purely -- a TV higher just then be but function expense, to a a revenue of look usual move will digital on we're growth.

expect should expense to growth double-digit So on digital, you see the front.

Operator

comes next The Hutton. Reily with from question Edward EF

Edward Reily

dividend The recent is interesting. increase

for Just XXXX? maybe wondering if allocation you capital could talk priorities about

Chris Young

back Yes. levels. increase just to was it dividend The pre-COVID getting

Dividend That's allocate to kind is what think needs it I needs where kind of going well. forward be we're is do going of where capital towards it be. as to M&A. to

accordingly of to So the plenty -- our and we'll observe got we're and applying monitor continued we've free operations. We're going M&A to to work to generate of that the with and opportunities. going cash. debt plenty But cash,

Operator

from [Operator next The with Research. comes Marsh question David Instructions] Singular

David Marsh

what just at M&A? landscape, the new could and focused with you talk landscape your it you it opportunities that Is markets? point? Is With presenting M&A about to Could regard more internationally? you regard themselves focus this seeing about to are the talk

Chris Young

existing that our to geography. could geography and different infrastructure. day by geography, it it's age, our such In this in footprint, technology to but not international complementary a Digital, is existing digital complementary thinking be Sure. necessarily

folks got but complementary of -- our lot existing out with opportunities going office And are they're that's that of a So we're our helping out our be footprint. working We've to who again, focus. on. digital some to Barcelona smart us

this There States. X looking are the are in at on lines well, nothing the broadcast on the U.S. as but deals that the we digital the of X along stuff in time. landscape, really United much again, here Not or front at

David Marsh

that might for XX XX here particular to divestiture on the next table months? Anything be the in in

Chris Young

as as our far base. steady as asset she goes It's No.

to So nothing looking sell. we're that

David Marsh

already? side. advertising of first coming significantly obviously, the big this And then year to back? election turning for half down year to point political year. mean I be interest from get will terms you of political next year at a Do maybe back the political of in even obviously, the see and But you this starting ads the certainly the just Are quarter. some half to third

Jeffery Liberman

delivered better are the had we robust the coming to really of to year is And see going year, some that now. anticipating a are year to year we going than coming quarter last a are We And good, last presidential through David, political we each small the year. are be this that right election of we Yes, go we already not what as through see that starting if as digital in forward. but mostly ramp-up quarter buys fourth year. spending

Chris Young

And race to California of It hyper competitive. Senate the interesting. could The half see in hyper, the has are that's And something that that expect coming be a second be primaries should up. got we to really year. for going

Operator

our to for Chris question-and-answer session. concludes conference like closing Young turn any remarks. I to the This would back over

Chris Young

with Thanks again on Thank today. that, time. May. forward for for look our QX Appreciate our you all joining progress earnings off. with in We to sharing us it. call you your sign Betsy, we'll

Jeffery Liberman

Thank you.

Operator

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

now disconnect. may You

Entravision Communications (EVC) 9 Mar 232022 Q4 Earnings call transcript