Entravision Communications Corporation (NYSE:EVC) Q3 2018 Earnings Conference Call - Final Transcript

Nov 07, 2018 • 05:00 pm ET

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Entravision Communications Corporation (NYSE:EVC) Q3 2018 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, and welcome to the Entravision Communications Third Quarter 2018 Earnings Conference Call. All participants will be in listen-only mode. (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.

Executive
Walter Ulloa

Thank you, Danielle, and good afternoon, everyone, and welcome to Entravision's third quarter 2018 earnings conference call. Joining me on the call today is Jeff Liberman, our President and COO; and Chris Young, our Chief Financial Officer.

(Forward-Looking Cautionary Statements ) Also, this call will include non-GAAP financial measures. The Company has provided a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures in today's press release. The press release is available on the Company's website and was filed with the SEC on Form 8-K.

Our third quarter results were in line with our expectations, with solid growth achieved by our digital segment, partially offset by decreased revenues in our television and radio segments compared to the prior period. Our balance sheet continues to be solid with approximately $234 million in cash and marketable securities on the books and total debt of $297 million.

Turning to our consolidated financial performance. Total revenues decreased to $74.6 million compared to $334.6 million in the prior year, as we recorded our FCC auction results in the third quarter of last year. Consolidated operating expenses were up 2% and consolidated adjusted EBITDA was $11.3 million.

Turning to our television segment. Television revenues from advertising and retransmission consent were down 4% during the third quarter due to lower advertising sales and slightly lower retransmission revenues. National advertising revenue was down 2%, while local revenue was down 7% compared to last year's third quarter period. Political revenue for our television segment totaled $1.5 million versus $2.1 million in the third quarter of 2014. Excluding political, core TV advertising revenue was down 10%.

Retransmission revenue declined 1% to $8.4 million during the third quarter versus $8.5 million in the prior year. The decline is primarily due to the absence of dish, retransmission related revenue this year as Univision continues to be dark on the dish platform nationwide. Revenue generated from spectrum usage rights totaled $1.2 million, arising primarily from spectrum leasing initiatives, which began earlier this year, compared to $263.9 million in the prior year period when we booked our results from the FCC broadcast auction.

Automotive advertising was down 8% for our television segment and represented 32% of our total advertising revenue. We saw solid growth in six of our top 10 auto clients, including San Diego Toyota dealers, Central Florida Honda dealers and Gulf Coast Honda. Services retail and political were the only top 10 television advertising categories that generated growth during the quarter. Overall, we added 49 new advertisers who spent more than $10,000 during the third quarter on our TV platform, which totaled approximately $1.9 million in advertising revenue. Notable new brands returning to our spot markets in the third quarter included