Spanish Broadcasting System Inc. (NASDAQ:SBSA) Q1 2020 Earnings Conference Call - Final Transcript

Jul 08, 2020 • 11:00 am ET

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Spanish Broadcasting System Inc. (NASDAQ:SBSA) Q1 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, and welcome to Spanish Broadcasting's First Quarter 2020 Conference Call. [Operator Instructions] Please note, this event is being recorded.

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

Executive
Brad Edwards

Thank you, operator. And good morning, everyone. Before we begin, please recognize that certain statements on this conference call are not historical fact that 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 noncash 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 U.S. GAAP.

A reconciliation of the Company's U.S. GAAP information to adjusted OIBDA is provided in the tables attached to the Company's 2020 first 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 2020 first quarter 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 first quarter results were impacted by the COVID-19 pandemic, which resulted in reduced advertising spend by some of our brand partners as well as lower special events revenues. While no one is certain what the new normal will look like, at SBS, we believe the long-term future of broadcast media remains bright. While the COVID-19 pandemic has presented unprecedented challenges, audio and video have once again clearly demonstrated their resiliency and importance as a communications medium.

Our leading audio stations, MegaTV and digital assets have continued to provide much-needed entertainment to our audience, almost all of whom found themselves social distancing and self-isolating at home. More importantly, we have delivered critical health and wellness