Entravision Communications Corporation (NYSE:EVC) Q2 2020 Earnings Conference Call - Final Transcript

Aug 04, 2020 • 05:00 pm ET

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Entravision Communications Corporation (NYSE:EVC) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good afternoon and welcome to the Entravision's Second Quarter 2020 Earnings Conference Call. [Operator Instructions]

At this time, I would like to turn the conference call over to Walter Ulloa, Chairman and CEO. Sir, please go ahead.

Executive
Walter F. Ulloa

Thank you, Jamie. Good afternoon, everyone, and welcome to Entravision's second quarter 2020 earnings conference call. I hope everyone is staying healthy and safe in these difficult times. Joining me on the call today is 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 risk 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, this call will include non-GAAP financial measures. The company has provided a reconciliation of these non-GAAP financial measures to their most 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 second quarter results were affected by the COVID-19 pandemic and the resulting economic crisis, which caused revenue declines across all of our business segments, compared to the prior year period. We anticipate a continued adverse economic environment due to the pandemic for the balance of 2020. Accordingly, we continue to manage our cost structure in a most efficient manner in order to align our operations most effectively with the challenges we are presently facing. I'll walk you through the various expense saving steps we have undertaken later in my remarks. Looking beyond the difficult business environment, our balance sheet today continues to be among the strongest in the industry with approximately $138 million in cash and marketable securities on the books versus a total debt of approximately $216.8 million. At the end of the second quarter, our total net leverage was 2.6 times.

Turning to our financial performance, revenues decreased 35% to $45.1 million in the second quarter. Consolidated operating expenses were down 24%, and consolidated adjusted EBITDA was down 86% to $1.7 million, compared to $12.6 million last year. Net income was $2.3 million, compared to a loss of $16.3 million in the same period last year.

Turning briefly to our television segment operating results, television revenues in the second quarter were down 29% to $27 million, compared to the prior year period due to the pandemic. National television advertising revenue was down 25%, while local advertising revenue was down 43%. Total television advertising and multicast revenue was down 39%, while retransmission consent revenue was up 3%. Looking into our top 10 ad categories for television in the second quarter, services, our largest advertising category, was minus 6% for our television segment and represented approximately 32% of our total television advertising revenue. Auto, our second