Spanish Broadcasting System Inc. (NASDAQ:SBSA) Q2 2019 Earnings Conference Call - Final Transcript

Aug 13, 2019 • 10:00 am ET

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Spanish Broadcasting System Inc. (NASDAQ:SBSA) Q2 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day and welcome to the Spanish Broadcasting Second Quarter 2019 Conference Call. [Operator Instructions]

I would now like to turn the conference over to Mr. Brad Edwards of Investor Relations. Please go ahead.

Executive
Brad Edwards

Thank you, Sean, 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're 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, recapitalization costs, executive severance expenses, impairment charges and other operating income excluding non-cash 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 second 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 Mr. Raul Alarcon. Please go ahead.

Executive
Raul Alarcon

Thank you, Brad, and good morning to everyone on the call today. Regarding our second quarter results, SBS has once again demonstrated its strategic and operational strength and given further evidence as to its standing as the undisputed leader of Hispanic radio, as well as one of the premier owner-operators in the nation's largest media markets. Now, I say strategic and operational because on the one hand management knows strategically where to take the Company in order to create long-term value, but as importantly, these results show that operationally we know how to get there.

As you will recall, consolidated adjusted OIBDA finished up 37% last year, significantly outpacing the industry. And as our second quarter results show, as measured by every conceivable operational metric, we continue to lead the radio sector in 2019.

For example, in terms of audience delivery, SBS registered spectacular ratings growth of 13% in 2019 whereas the ratings of almost every other radio operator including both our major Spanish language peers, declined during the same period. And