Spanish Broadcasting System Inc. (NASDAQ:SBSA) Q4 2019 Earnings Conference Call - Final Transcript

Apr 01, 2020 • 11:00 am ET

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Spanish Broadcasting System Inc. (NASDAQ:SBSA) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning, and welcome to the Spanish Broadcasting 2019 Fourth Quarter and Year End Conference Call and Webcast.

[Operator Instructions].

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

Executive
Brad Edwards

Thank you, Gary, and good morning everyone.

Before we begin, please recognize that certain statements on this conference call are not historical fact, and 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, 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 tables attached to the Company's 2019 fourth 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. Albert Rodriguez.

Executive
Albert Rodriguez

Good morning, ladies and gentlemen, welcome to the SBS 2019 fourth quarter and full year 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.

Our fourth quarter results were a strong finish to another highly successful year for SBS. We delivered strong revenue and adjusted OIBDA growth compared to the fourth quarter and last year, and our audio operating margins once again led the industry. Our consolidated net revenue grew 24% for the fourth quarter, excluding political, beating every competitor in the industry. Our audio adjusted OIBDA margins were over 51% in the fourth quarter, which significantly outpaced both our Spanish and English language peers.

In addition to strong financial performance, the fourth quarter saw the continuation of several key operating trends. First, our audio stations remain the highest ranked across the nation's largest Hispanic DMAs. Second,