Entravision Communications Corporation (NYSE:EVC) Q2 2019 Earnings Conference Call - Final Transcript

Aug 06, 2019 • 05:00 pm ET


Entravision Communications Corporation (NYSE:EVC) Q2 2019 Earnings Conference Call - Final Transcript


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Good afternoon, and welcome to the Entravision Second Quarter 2019 Conference Call. [Operator Instructions] I would now like to turn the conference over to Mr. Walter Ulloa, CEO. Please go ahead, sir.

Walter F. Ulloa

Thank you, Nancy. Good afternoon, everyone, and welcome to Entravision's second quarter 2019 earnings conference call. Joining me on the call today is Jeff Liberman, our President and COO; and Chris Young, our Executive Vice President and Chief Financial Officer.

Before we begin, I must inform you that this conference call will contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ. Please refer to our SEC filings for a list of risks and uncertainties that could impact actual results. This call is a property of Entravision Communications Corporation. Any redistribution, retransmission or rebroadcast of this call in any form without the expressed written consent of Entravision Communications Corporation is strictly prohibited.

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 second quarter results were in line with our expectations, with increased revenues at our TV division being offset by a decrease in revenues at both our digital and radio segments.

Looking beyond the general business environment, our balance sheet continues to be solid with approximately $166 million in cash and marketable securities on the books versus a total debt of $245 million. During the quarter, we were also active in buying back our stock with approximately 439,000 shares repurchased at an average price of $2.95 per share. We also continue to return capital to our shareholders through our quarterly dividend. We're very proud of our local TV news teams in Denver, San Diego and Washington, D.C. In these three markets, we have won a total of 44 Emmys. We'll update you on the next call about our additional Emmys is Orlando, McAllen and El Paso.

Now turning to our financial performance. Revenues decreased 7% to $69.2 million in the second quarter. Consolidated operating expenses were down 1% and consolidated EBITDA -- adjusted EBITDA was $12.6 million compared to $14.9 million last year. Free cash flow, which we defined in our press release was $1.9 million compared to $8.9 million last year due to capex related to the FCC television repack in this year's second quarter.

Turning to our television segment operating results. Television revenues were up 4% during the second quarter compared to the prior year period. Advertising revenue was down 7% during the second quarter, primarily due to lower national sales. National advertising revenue was down 10%, while local advertising revenue was down 4% compared to last year's second quarter period. Retransmission revenues remained flat during the second quarter compared to the same quarter in the prior year. Revenue generated from spectrum usage rights totaled $4 million during the second