Entravision Communications Corporation (NYSE:EVC) Q3 2019 Earnings Conference Call Transcript

Nov 07, 2019 • 05:00 pm ET

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Entravision Communications Corporation (NYSE:EVC) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon everyone and welcome to Entravision's Third Quarter 2019 Earnings Conference Call. [Operator Instructions].

At this time I'd like to turn the conference over to Mr. Walter Ulloa Chairman and Chief Executive Officer. Please go ahead.

Executive
Walter F. Ulloa

Thank you, Jamie. Good afternoon everyone and welcome to Entravision's Third Quarter 2019 Earnings Conference Call. Joining me on the call today is Jeffery Liberman our President and COO; and Chris Young our 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 the 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 on 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 adversely impacted by revenue declines in our audio and digital business segments compared to the prior year. However, our television division revenues did remain constant despite nonrecurring political in the prior year period due to increases in revenues from spectrum usage rights and retransmission consent revenue. Looking beyond the general business environment our balance sheet continues to be solid with approximately $158 million in cash and marketable securities on the books versus a total debt of $244 million. During the quarter we also -- we were also active in buying back our stock with approximately 470000 shares repurchased at an average price of $2.84 per share. We also continue to return capital to our shareholders through our quarterly dividend.

Now turning to our financial performance, Revenues decreased 8% to $68.8 million in the third quarter. Consolidated operating expenses were down 2% and consolidated adjusted EBITDA was $9.1 million compared to $11.3 million last year. Turning to our television segment, Television revenues were flat during the third quarter compared to the prior year period. Television advertising revenue was down 1% during the third quarter primarily due to lower national sales impacted by the absence of $1.5 million in political revenue in the prior year. Excluding political national advertising revenue was up 2% while local advertising revenue was down 4% compared to last year's third quarter period. Retransmission revenues were up 4% during the third quarter compared to the same quarter in the prior year. Revenue generated from spectrum usage rights totaled $2.7 million during the third quarter versus $1.2 million in the prior year primarily from nonadvertising revenue related to a service agreement with a local telecom operator as well as the spectrum leasing initiatives or multicast. All in excluding political revenues in the prior year