Entravision Communications (EVC)

Kimberly Esterkin ADDO Investor Relations
Walter Ulloa Chairman & CEO
Christopher Young CFO & Treasurer
Michael Kupinski NOBLE Capital Markets
Call transcript
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Welcome to the Entravision Communications Corporation First Quarter 2021 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation there will be an opportunity to ask questions. [Operator Instructions]. Please note that this event is being recorded. pleasure your my from Kimberly now Relations. Investor is to host, introduce Esterkin It ahead. go Please

Kimberly Esterkin

healthy Operator. you, XXXX call. is earnings Entravision's everyone, first conference staying everyone hope Thank I afternoon, quarter Good and safe. and welcome to

me Chairman Chief Ulloa, Chief Officer. Executive is Young, and Chris the today and Joining on Financial Walter call Officer;

refer press of The for the uncertainties contain that are of measures call on Please results. Entravision SEC subject we must the redistribution, you Entravision's Entravision's I inform has The turn to statements now Before to release. cause measures. without that this financial measures call most this is filed results the list Communications property risks a this could risks and form forward-looking and Any impact will non-GAAP This on strictly that filings of to begin, to expressed uncertainties Form actual press of Walter non-GAAP I Corporation company the Officer. was and contain conference will Communications these retransmission in release Chief Corporation. prohibited. their could over call the GAAP of any actual call that or Ulloa, rebroadcast with written will SEC call to Also, is today's in Entravision financial provided website X-K. company's reconciliation a available consent comparable Executive is differ.

Walter Ulloa

million, with quarter year first during results appreciate of quarter XXXX. our increased the over up $XXX.X good along a our businesses We the earnings Entravision's afternoon, you and net Cisneros XX% the Entravision revenue by revenue quarter continued Kimberly, strong including forma of everyone. results, with digital basis driven broadcasting performance political, On year-over-year. in segment. core prior excluding Growth revenue Interactive first our was call. for us you, strong pro joining XXXX Thank XXX% first quarter posted of for the

of continue businesses Each first since as first businesses results see lows is an our path We firmly the I'd pandemic gives our driven XXXX. are And on employees pandemic. underlying in we navigate a all our course, recovery. excellent we an pleased confidence to quarter on the of adjusted to our balance EBITDA as thank for upward us and to year-over-year. to On continue for an now $XX.X quarter a outlook business. up from From quarter, accounting operate XXXX. much the for the perspective, EBITDA prior management Adjusted which solid a optimistic the a to totaled basis, increase XX% of Cisneros an continue pro XX% more Interactive, period. efficient for year forma million is expense like

today's structure in our our lean Young, forward later helping conditions our CFO continue as first call. improve. about quarter Our company propel expenses to will cost Chris further economic speak macro is

performance our Now take segment a let's at quarter. for the look

first compared in Our year, and national million finance compared television in down improved lack the compared quarter television Auto, year revenues television revenues was increased up of period. by division the television to advertising first our local by in of Strength healthcare first spend prior advertising X% by core driven advertising X%. and prior for last groceries advertising revenues $XX.X largest revenue the year, XX% the up to the X% to decreased political XXXX. X%. to television increasing generated X% growth political quarter due quarter non returning excluding million the of up returning first category and were in non year-over-year. $X.X services, primarily XX% With XX%, quarter, Core

the performance. heading quarter. be back this more road, a term auto to supply Americans some issues the With auto in demand chain United strong. million disruption to short increase XX we our sold auto the for the cars year. Although cars face year, over of definitely States to which XX% last the category equals in Consumer almost on an this did during anticipate Approximately forecasted remained sold are be

for ahead Telemundo XXXX competitor Telemundo. of of head local markets or television winter with television head with XX for stations have their news XX tied finished of Univision or In among XX we to ratings where the competition in XX terms early adults to

we markets Telemundo our For or of where finished to XX we head late tied local our have the in XX competition. news, ahead competitors head of

Univision ages our people people two cumulative a week, of full Telemundo have a X.X compared stations plus to audience ages X.X television our two all markets, and plus. million During across million UniMás of

footprint, more Univision range in viewers have than higher X% XX% in which our the Telemundo, release. television We is XXXX and UniMás November

complete the total Cisneros Digital revenues drivers increased global digital solutions in Interactive compared our first up prior Smadex and revenues local to first Turning unit and of growth XXX%. prior XX% XX% this first the for On the compared forma quarter basis, operations. programmatic business, fourth the million were U.S. are $XX.X advertising year of an digital XXXX. a to period. digital increase Other our represented for to best provide period, of to reach of the company clients, million platforms, quarter revenues of revenues in Entravision and marketers, interest year quarter our performance $XXX.X majority our in campaign strongest for quarter. the product compared the in driver our primary XXXX. growth grew our XX% the its total the acquisition to continues and Digital advertising The the transparency. revenue of first quarter of pro XX% brands in was

in clients serves now digital Our more highly XXXX proficient month sales than XX countries. each operation

audio to Now let's segment. turn your

revenue a year, $X.X quarter of revenues year million XX% radio year. revenues for versus while the outperform radio Kaplan radio in three audio total X% which our to totaled total decrease includes the decreased This to over markets audio year of spot first period, points political prior by excluding revenue, up increased over In outperformed Local year where Miller in XX quarter in We Data million, for we revenues market markets core the we were the spending market the top XX $XX.X XX year-over-year, exceptional XXXX the XXXX. subscribe. X% the performance first combined. audio Our total revenues national X% of markets. of we subscribe XX

the by radio Los XX cluster points. Our market beat Angeles

Phoenix points. radio by the market are Top Hispanic outperformed Our total stations surpassed U.S. our XX three XX and revenue cluster in XX markets. points, all markets market the radio by McAllen spot These

largest of terms our improved the to quarter second In for XX% XX% our category total as of category year-over-year. ad compared Services audio services the Auto, categories, XX% declined advertising representing revenue. of remains XXXX. first quarter largest

radio, markets. impacted by issues and larger Tier auto a chain ads on across were supply which quarter, during X impact the television, all spending As radio auto with our had X Tier dealer

midday XX eight adults rates the adults number Xam CFO adults Jose Angeles, very And speak now, In to number language increase to the Spanish is Xpm to about of one Angeles more Our y year. earnings XXXX we Spanish afternoon Hispanic to ranked market, Chris? Hispanic leader to the our language remains radio provide drives, we our momentum pacings. Show for for Hispanic strong competitors stations three XX, performance people Genio and audio quarter one to in have I'm We second a Hispanic and to rates Spanish the results driving all period XXXX and including will measurement XX other XX strong, as in turn XX Los as radio XX, that radio number to time, Los Erazno throughout among winner outstanding among outperforming to XX their should nation's renovations El among through see adults show and show first adults was XX outperforming de Spanish division XX even more. first our ties. improve language Young, first these quarter the XX. Chokolata over XXXX Friday the Monday El and La performance. Overall, an Hispanic our quarter believe call Chris going quarter further stations,

Christopher Young

and good afternoon Walter, you, everyone. Thank

for on revenue forma year. a Interactive's including XX% first XXXX XXXX. XXXX. discussed QX and million, pro the of of basis increase revenue totaled When increased Walter was revenues $XXX.X quarter year comparing XXX% As results, from in an Cisneros over

and year-over-year, spectrum X% up related TV excluding year was core and up year. Retransmission division, was spectrum ad at million $XX.X year ad revenue over revenue was For political down million, over X% revenue and related $X.X XX% total year. our totaled

results, our totaled including digital comparing year digital basis XXXX digital When increased revenues $XXX.X revenue over For revenues division, million, XXX% year. XX% forma year. up over on our Cisneros in Interactive's pro year and a

X% for X% totaled political over audio was year. revenues $XX.X over audio QX last of the year Lastly division million, up revenue excluding our period, core down prior

our limit during call XXXX, to conditions. steps we of the expenses market to strategic second spoke quarters we half due As took our to last

have in reinstate Following SG&A all were pleased to to most increase year compared able reinstated, of pre year period. levels. $XX.X in we the while to $XX.X guts expense were fully employee the X% to quarter, maintain the salaries a for remaining salaries million XXXX. we been an expenses COVID were the of finish strong to And ago the million

$XX.X of SG&A acquisition down Cisneros from operating million Direct slightly expenses in of totaled the million in $XX.X QX Excluding were XXXX. XXXX, QX expenses down XX%.

operating Excluding year. X% were the acquisition expenses down over direct Cisneros year

related year. driver corporate of quarter for compared expenses of million primary and salary expense corporate same audit to expense the quarter total $X.X a to X% $X.X expense. Finally, in increased last was the million of The

During remained share buyback the quarter, on hold. first our

eliminate operating to core We level also $X.XXX and maintained continue media been at a and the serving expenses our corporate dividend at secondary businesses. to

the our board and to at continue our dividend will which will buyback of evaluate of discretion each We be directors. quarter,

first corporate up in operating we expect quarter as the cost sold be to approximately of forward, goods compared Looking of quarter second and excluding this the X% expenses that our digital year. will

totaled Cisneros million represented year. a without the the generation cornerstone ability of last on for a to compared first the Excluding revenue. quarter, the a up operating our of flow pro a earnings political approximately take was for was quarter cash quarter. forma of our the $XX adjusted XX% contribution first Consolidated year. year. both the first XX% organically cash Entravision’s as million up was adjusted quarter compared On interactive in in XXX% flow million and defined through basis, accounting total been to expenses lack expected be year-over-year. $X This EBITDA Cisneros need up quarter our quarter, EBITDA portion has XX% Free first of compared to of to approximately flat supported grow in free quarter Strong release leverage. of to business expenses the and last of acquisition, to to acquisitions EBITDA adjustment first the despite Entravision’s $XX.X are EBITDA Cisneros, strong related this EBITDA to the

the $X.X of for for quarter the compared are compared We expect XXXX this was million year. million same for continue million. per rate prior approximately high million in $X.XX for to quarter were expenditures Net compared to Cash free cash year. year. cash foreseeable $X.XX, first in in of conversion share loss interest share to last $X.X Earnings flow last capital QX the a same million $X.X expense Capital totaled quarter expenditures future. of the in $X.X to the quarter be for X the to year expected per the

of balance to million, which marketable securities the as X.XX $XX sheet, total one of March and and total the Net of marketable cash times are of our was Cash EBITDA. agreement at first in debt total net our leverage remains and defined $XXX.X XX, our quarter. marketable cash books accessible end was total credit very million net $XXX.X securities of was turn securities, strong. of on Turning the million, totaled leverage as

for of second pacings quarter our the XXXX. to Turning

pacing at over As of today, TV period political XX%. with excluding pacing is year plus core prior business XX% the TV, our advertising a

digital revenue Our last digital revenue factoring is of pacing including forma plus on generated Cisneros is basis Interactive plus our a in pacing pro business from business, in XXX%. QX XXX%, Cisneros year,

XX% revenue that, compared turn Lastly, audio, Cisneros at is With our to plus I'll last our at acquisition, pacing revenue political pacing core the year Walter, total pro plus Walter? is call business is plus XX%. All-in currently on XXX%, to excluding a pacing pacing total audio with forma a back XXX%. our plus

Walter Ulloa

Chris. Thanks,

last the to Cisneros segments our has As continues core my at continue exceptional first since I with our the closing excited for digital with dynamic to given quarter efficiently improvement streamlined time acquisition growth. delivering in we see our very our to your cost Chris quarter beginning businesses continued Entravision’s for results prepared well, same continue expand Interactive while enhance majority with and at the products along of mentioned the of high very offerings. questions. the With would Entravision. the our to I a open investment businesses support the we pleased performed of and quality A are of in overall also operate And and optimistic macro strongly about growth appreciate performing broadcasting our We're fourth and the services, more we that call to conditions. remarks, up year. you. more Operator? digital to of Thank are customers. We continued structure, content your now economic like will

We begin the Please from with comes session. answer Our question will Kupinski now go and Instructions] ahead. [Operator question Markets. NOBLE Michael Capital first

Michael Kupinski

congratulations Thank amazing an and on you, quarter.

did us us how And in how the how your I what's business flavor much you You just expected. this maybe the give job flavor perform I did driving of digital And understand you just Cisneros I'm their better driving if what's give was of you than digital adding and your to growing trying And maybe that that wondering core quarter? of outside is a in at it and then a point? than expected? perform growth to businesses business. better digital a did legacy could growth

Walter Ulloa

thank Well, Michael. you,

with did It sales perform much expected. than better start first. question this I'll So a

versus think team. with of first it's I plus a first XXX% over last quarter the that of, our just And, up XX% combination was finishing, business. and in growth year, we the wound budget quarter

Spotify popularity primarily Our performance better and more Latin yes, to better Facebook, Facebook, three and it America. and LinkedIn, in And call of the our sales teams providing of products. those executing the solutions advertisers

we international of As other the I rest rep businesses. But business. the businesses, Cisneros for sales three giving also for Latino mostly digital U.S. by off reach digital as solutions you some we advertisers, our -- on have SMBs, a across we to have providing who more which the started business, markets, color the our advertising in than primarily digital U.S. operate want to includes consumers digital XX

works team business is part where platforms, programmatic our Triton. alongside audio core team So are as business well to offer audio digital of another this our exchange inventory Adways Cats, major And buying to own including audio And audio and then as then platforms, sales we as our these U.S. our well. audio we network. broadcast our connected major

U.S. our then, first our, XX% compared the -- of So is together these call another And we two digital And were core year. unit. next. important of and what businesses third last they the are of up is the our leg the part our quarter businesses digital which of to stool Entravision International,

product unit Our apps, with -- sales in Smadex its about generated downloads sales over territories. categories. period. with And internationally And coming the the operates is primarily grew XX% about and revenue mission it's call core Smadex. It's our the prior U.S. in business year from of And entertainment first XX% provide quarter. XX% core international this of of it, the Fintech marketers DSP. in is programmatic to This mobile-first gaming, the

summary our a business gives digital kind whole. So a as that just of of you

Michael Kupinski

to for you see your on give political California recall? to political year? thoughts us can this started advertising you the Do advertising related And

Walter Ulloa

by just give the by of And has you other Well, have my a sure, Chris, I'll thoughts. electorate. for to turnout I'm as all Newsom order the continue believe he governor thoughts. big we'll here voter to then have that California, We in some Latino

Padilla He's on certainly that in the know So terms who I a I Senate, major the believe has has think the with decision. the to election. And -- California, certainly to the with Latino community US Latino all Latino wins of that the that I'm Newsom pleased going which that depend U.S. was well it's voter familiar I advantage. very the And to sorry, He community. appointment. for the Alex was Senate. appointed __ in

additional $X We maybe? thrown So, might like number million somewhere as what the what $X between the million We've of to Chris? to it numbers maybe of know. in fourth kind look quarter. don't primarily at revenue around

Christopher Young

agree. I

million right here probably $X million, $X as today. at think least the I we number, stand is


Walter Ulloa


Michael Kupinski

about tournament Yes. a what well? impact if soccer could might wondering as the you the upcoming bit and I in talk be little quarters the just was revenue

Walter Ulloa

both Its So lot radio. up. tournaments of got three and going soccer, we've coming on a be TV to

You've got Euro the Cup.

will America, bleed far And then that Cup. a into to again, on to Copa an Gold got as in the right primarily and those some be TV as think revenue got you've and concerned, number million You've incrementally it's will both but probably The $X about $X million, is QX, QX. radio. incremental falling

Michael Kupinski

you All right. Thank much. very

Walter Ulloa

Michael. you, Thank


questions. Walter concludes like closing I'm This conference would to Instructions] back to no answer the [Operator remarks. for I our turn session. question any and further showing Ulloa over

Walter Ulloa

you, joining everyone And your us today Sarah. for support. thank Thank you for again, and

future our our Thank you on about and We call August. are progress in to sharing forward optimistic of quarter the earnings second with Entravision look you.


now concluded. Thank presentation. today's The conference is you attending for

now disconnect. may You