Spanish Broadcasting System Inc. (NASDAQ:SBSA) Q1 2019 Earnings Conference Call - Final Transcript

May 17, 2019 • 11:00 am ET

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Spanish Broadcasting System Inc. (NASDAQ:SBSA) Q1 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, everyone, and welcome to the Spanish Broadcasting First Quarter 2019 Conference Call. All participants will be in listen-only mode. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. (Operator Instructions) And please note that today's event is being recorded.

I would now like to turn the conference over to Brad Edwards. Please go ahead.

Executive
Brad Edwards

Thank you, William, and good morning, everyone.

Before we begin, please recognize that certain statements on this conference call are not historical fact. They may be deemed, therefore, to be forward-looking statements under the Private Securities Litigation Reform Act of 1995. In particular, statements about future results expected to be obtained from the company's current strategic initiatives are forward-looking statements. Many important factors may cause the company's actual results to differ materially from those discussed in any such forward-looking statements. These risks and uncertainties are described in further detail in the company's filings with the SEC. You are directed to these filings for more detailed information. Spanish Broadcasting System undertakes no obligation to publicly update or revise its forward-looking statements.

Please also note that we will be discussing non-GAAP financial measures within the meaning of the SEC rules. The company believes that operating income or loss before depreciation and amortization, gain or loss on the disposal of assets net, recapitalization costs, impairment charges and other operating income, excluding noncash stock-based compensation or adjusted OIBDA, is useful in evaluating its performance because it reflects a measure of performance for the company's stations before considering costs and expenses related to capital structure and dispositions. This information is not intended to be considered in isolation or as a substitute for operating income, net income or loss, cash flows from operating activities or any other measure used in determining the company's operating performance or liquidity that is calculated in accordance with US GAAP. A reconciliation of the company's US GAAP information to adjusted OIBDA is provided in the table attached to the company's 2019 first quarter earnings release, which is available on the Investor Relations section of the company's website at www.spanishbroadcasting.com.

I will now turn the conference over to management. Please go ahead.

Executive
Albert Rodriguez

Good morning, ladies and gentlemen, welcome to the SBS 2019 First Quarter Conference Call. On today's call, we will provide an overview of recent operating developments and review our financial results. Joining me today are Jose Molina, our Chief Financial Officer; and Richard Lara, our General Counsel.

During the first quarter, we generated solid top line, particularly in audio segment where revenues increased 17%, strong execution of our multimedia strategy is driving accelerated sales growth and our audio stations continue to be among the most highly ranked across the nation's largest Hispanic markets. In addition, our mobile, digital and social media engagement metrics remain at record levels. At the same time, we recognize the need to invest in our capabilities and platform to strengthen our long-term growth profile and best position SBS for the future.

During the first quarter, we made