Entravision Communications Corporation (NYSE:EVC) Q1 2020 Earnings Conference Call - Final Transcript

May 07, 2020 • 05:00 pm ET

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Entravision Communications Corporation (NYSE:EVC) Q1 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good afternoon and welcome to Entravision's First Quarter 2020 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Walter Ulloa, Chairman and CEO. Please go ahead.

Executive
Walter F. Ulloa

Thank you, Grant. Good afternoon, everyone, and welcome to Entravision's First Quarter 2020 Earnings Call. I hope everyone is staying healthy and safe in these difficult times. Joining me on the call today is Jeff 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 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 first quarter results were affected by the COVID-19 pandemic and the resulting economic crisis late in the first quarter, which resulted in declines in our broadcast and digital segments compared to the prior year. However, we did achieve growth in our television segment compared to the first quarter of 2019 as we benefited from a healthy political advertising from various presidential primaries across the country. We expect a significantly greater adverse impact in future periods, depending on the extent and duration of the economic turndown arising from the pandemic. As a result, we have undertaken an extensive review of our business in order to more efficiently align operations and reduce costs. I'll walk you through the various actions we have undertaken later on in this call.

Looking beyond this extremely difficult business environment, our balance sheet today continues to be solid with approximately $134 million in cash and marketable securities on the books versus a total debt of approximately $217.5 million.

Turning to our financial performance, revenues decreased 1% to $64.2 million in the first quarter.

Consolidated operating expenses were down 6%. Consolidated adjusted EBITDA was up 20% to $9.7 million compared to $8.1 million last year. Free cash flow was up 304% to $5.2 million compared to $1.3 million. It is interesting to note that in early March, we were forecasting 70% EBITDA growth for the quarter, our largest percentage growth in the quarter in our history. Fortunately, our revenue started to unravel across all our platforms as we entered the second week of March and the COVID crisis accelerated.

Turning to our television segment operating results. Television revenues in the first quarter were up 2% to $39.2 million compared to the prior year period, primarily due