Entravision(US:EVC)2020-03-06 21:33Financial Data and Key Metrics Changes - Revenues decreased 14% to $70.8 million in Q4 2019 compared to the prior year [8][41] - Consolidated adjusted EBITDA decreased 47% to $11.1 million in Q4 2019 compared to $20.9 million in Q4 2018 [8][41] - For the year, total revenues decreased by 8% to $273.6 million compared to $297.8 million in 2018 [8][41] - Consolidated adjusted EBITDA for the year decreased 24% to $41.2 million [8][41] Business Line Data and Key Metrics Changes - Television revenues in Q4 decreased 19% to $36.9 million, primarily due to the absence of approximately $7 million in political revenue from the prior year [9][42] - Audio revenues were down 17% in Q4 compared to the prior year, with local revenues down 9% and national revenues down 29% [16][42] - Digital revenues increased by 1% to $20 million in Q4 compared to $19.8 million in the prior year [25][43] Market Data and Key Metrics Changes - National advertising revenue for television was down 39% while local revenue was down 6% in Q4 [9] - Core TV advertising revenue excluding political was down 7% in Q4, with national down 11% and local down 4% [9] - Audio revenues for the year were down 14% to $55 million compared to $63.9 million in the prior year [17] Company Strategy and Development Direction - The company is focused on executing a multiplatform strategy and investing in content and distribution assets to enhance cash flows [39] - The digital division is expected to improve performance in 2020, driven by the Smadex platform and a streamlined cost structure [34][39] - The company anticipates impressive political revenue increases in 2020 compared to 2016, leveraging its media assets in key swing states [40] Management's Comments on Operating Environment and Future Outlook - Management noted continued softness in TV and audio units but expressed optimism about digital results improving [38] - The first quarter of 2020 is off to a good start, with strong political pacing expected [39] - Management is confident in the changes made throughout 2019 and believes they will contribute to increased cash flow in the audio business [66][67] Other Important Information - The company has approximately $138 million in cash and marketable securities against total debt of approximately $218 million [7] - The company repurchased approximately 802,000 shares at an average price of $2.73 per share during Q4 [7] Q&A Session Summary Question: Did you do about $1 million in television political in the fourth quarter? - Management clarified that political revenue was about $200,000 in Q4 [49] Question: Can you talk about the amount of political that was booked so far in the first quarter? - Approximately $4.6 million of political revenue is booked for Q1 in television and about $630,000 in radio [49] Question: Have the ratings in radio stabilized? - Management confirmed that ratings have stabilized, with significant improvement noted in Los Angeles [50][51] Question: Can you provide an update on the legal issue regarding performance royalty? - Management stated that the matter is being litigated and is considered non-material [56] Question: What are your thoughts on the recent ownership changes at Univision? - Management believes it could be a positive step for Univision, which is important for programming delivery [57] Question: Can you clarify the $8 million of expense reduction in the audio cost structure? - Management indicated that the majority of the $8 million reduction is due to renegotiated programming contracts [58] Question: How does the shift to Katz affect your national sales force? - Management confirmed that the national sales force will be reallocated or reduced as part of the shift to Katz [60]