National CineMedia, Inc. (NASDAQ:NCMI) Q3 2019 Earnings Conference Call - Final Transcript

Nov 04, 2019 • 05:00 pm ET


National CineMedia, Inc. (NASDAQ:NCMI) Q3 2019 Earnings Conference Call - Final Transcript


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Greetings. Welcome to National CineMedia, Inc. Conference Call. [Operator Instructions] Please note, this conference is being recorded.

I would now turn the conference over to your host, Katie Scherping. You may begin.

Katherine L. Scherping

Thank you, Darryl. Good afternoon, everyone. I'm joined today here in Denver by our CEO, Tom Lesinski; and joining us by phone is Cliff Marks, who will be available for Q&A later in the call.

I'd like to remind our listeners that this conference call contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts communicated during this conference call may constitute forward-looking statements. These forward-looking statements involve risks and uncertainties. Important factors that can cause actual results to differ materially from the Company's expectations are disclosed in the risk factors contained in the Company's filings with the SEC. All forward-looking statements are expressly qualified in their entirety by such factors.

Further, our discussion today includes some non-GAAP measures. In accordance with Regulation G, we have reconciled these amounts back to the closest GAAP measurement. These reconciliations can be found at the end of today's earnings release, which may be found on the Investor page of our website at

And with that, I'll turn the call over to Tom.

Thomas F. Lesinski

Thank you, Katie, and good afternoon, everyone. I assume the leadership role here at NCM roughly three months ago with a simple objective: to return to our public company roots by delivering a substantial dividend through long-term top line growth, high adjusted OIBDA margins and high-quality earnings as measured by conversion of earnings to free cash flow. And so, after providing you with a few observations about our recent quarter, I'd like to share with you our vision for the Company moving forward. Then, as always, Katie will provide more details about results and our 2019 guidance. And then we will be open -- we open the line for your questions.

I'm very excited about the progress that we've been making to transform our business into a more effective, entertainment and advertising distribution platform that is more data-driven and nimble in today's changing video advertising market place. With these significant strategic developments in our business, all the changes to our ownership and leadership and the recently announced ability to sell ads closer to the feature film, we are poised for growth in 2020 and beyond.

As we noted on our call in August, we got off to a strong start to the third quarter with our pipeline pacing ahead of last year. While we were able to slightly grow our Q3 top-line revenue over last year as our national business continued to perform well, we finished the quarter a bit softer than we expected. A couple of national deals didn't close resulting in scatter revenue well below Q3 2018, our regional business continued to underperform and our make-good come in higher as