WedBush Securities 2014 Transformational Technologies Management Access Conference New York City

Transcription

1 WedBush Securities 2014 Transformational Technologies Management Access Conference New York City May 13,

2 Use Of Non-Gaap Financial Measures This presentation includes certain non-gaap financial measures. The company has previously provided a reconciliation between these non-gaap financial measures and the most directly comparable GAAP measure. That reconciliation was included in the company s May 8, 2014 Earnings Press Release for the quarter ended March 31, 2014, which has been posted on the company s website and filed with the SEC under the cover of Form 8-K. FORWARD-LOOKING STATEMENTS DISCLOSURE This presentation includes certain forward-looking statements and projections provided by the Company. Any such statements and projections reflect various estimates and assumptions by the Company concerning anticipated results. No representations or warranties are made by the Company or any of its affiliates as to the accuracy of any such statements or projections. Whether or not such forward-looking statements or projections are in fact achieved will depend upon future events some of which are not within the control of the Company. Accordingly, actual results may vary from the projected results and such variations may be material. Statements contained herein describing documents and agreements are summaries only and such summaries are qualified in their entirety by reference to such documents and agreements. 1

3 I. Introduction

4 Focused on the US Latino population Entravision markets: Univision s largest TV affiliate group 53 TV stations / 49 Radio stations 2010 Percent Latino Population by County 2010 Percent HispanicPopulation by County 50% to 100% 25% 60 to to 50% 100% 16.3% 25 to to 50% 25% 5% 10 to 16.2% to 25% 0 to 5 5% to 10 % 0 to 5% Above the national average Sacramento, CA Stockton, CA Monterey/ Salinas, CA Santa Barbara, CA Los Angeles, CA San Diego, CA Modesto, CA Reno, NV Las Vegas, NV Palm Springs, CA Phoenix, AZ Yuma/ El Centro, CA Aspen, CO Albuquerque, CO El Paso, TX Denver, CO Colorado Springs, CO Lubbock, TX San Angelo, TX Wichita, KA Springfield, MA Hartford, CT Washington, DC Boston, MA Odessa, TX Houston, TX Orlando, FL Laredo, TX Corpus Christi, TX Tampa, FL Miami, FL McAllen, TX Source: U.S. Census Bureau 2010 Census Briefs: The Hispanic Population:

5 III. Television

6 Television overview Univision - dominant Spanish-language network in the U.S. Univision airs the latest, high-rated telenovelas (soap-operas) Large portion of Univision TV content provided by Televisa Entravision s exclusive contract with Univision runs through 2021 National rep fee of 9.4% on all Univision TV ad sales Entravision is the largest Univision affiliate group 24 Univision markets, 20 TeleFutura markets 20 markets with TV duopolies driving higher margins Beyond Univision, EVC also operates 3 Fox (Laredo, McAllen & Monterey) and 1 Telemundo (SanDiego). Also 5 MundoFox stations launched in Q

7 Top ranked local news Focusing on issues relevant to Latinos, Entravision s local newscasts are #1 or #2 in 14 markets among ALL viewers, regardless of language HISPANIC MARKET RANK DMA STATION NEWS TP RANK ADULT RATING 10 McAllen-Harlingen KNVO # San Diego KBNT # Albuquerque KLUZ # El Paso KINT # Washington, DC WFDC # Tampa WVEA # Las Vegas KINC # Monterey-Salinas KSMS # Laredo KLDO # Yuma-El Centro KVYE # Odessa-Midland KUPB # Santa Barbara KPMR # Palm Springs KVER # Reno KREN #2 0.2 Source: Nielsen, November 2013 survey, Entravision subscriber markets, Adults 18-34, ratings, Mon-Fri 6p-60p eastern/pacific, Mon-Fri 5p- 5:30p central/mountain, includes ties 6

8 EVC Core TV revenue growth vs TV Industry Entravision TV quarterly growth vs TV Industry, Q Q (10 consecutive quarters of beating the industry) EVC Core TV TV Industry 8.0% 4.0% 6.5% 5.9% 1.5% 1.1% 9.6% 9.8% 8.0% 5.4% -0.8% 11.2% 1.0% 8.1% 11.0% 7.0% 1.0% 3.0% Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14-3.9% -5.3% EVC vs Industry: +4.0% +5.0% +4.8% +1.6% +13.7% +6.2% +10.2% +13.4% +4% +2% 7

9 Retransmission Agreement Revenue Entravision Retrans. Revenue, E (USD Millions) $13.7 $17.1 $20.2 $22.2 $25.1 $ E 8

10 IV. Radio

11 Radio overview Entravision is the third largest Spanish-language radio group in the U.S. Own 49 radio stations, 38 FM and 11 AM Entravision radio network reaches 313 affiliate stations in the U.S. representing approximately 94% of the US Latino population Centralized programming infrastructure Majority of radio content created in Los Angeles Radio operations in 17 total markets 6 Stand-alone markets 11 Combo markets with TV Producing significant higher cash flow margins on a Combo basis 10

12 Entravision Radio Network Reaching 94% of US Latinos Seattle Wenatchee Spokane Tri Cities Yakima Portland Boston Eureka Yuba City Santa Rosa San Francisco San Jose Monterey/ Salinas Medford Reno Sacramento Stockton Modesto Fresno San Luis Obispo Bakersfield Santa Maria Santa Barbara Las Vegas Oxnard/Ventura Barstow Los Angeles Riverside/ San Bernardino San Diego Visalia Palm Springs Yuma/El Centro Boise Phoenix Tucson Idaho Falls Salt Lake City Grand Junction Reaching 313 stations nation-wide Albuquerque Las Cruces El Paso Ft. Collins Denver Santa Fe Clovis Colorado Springs Amarillo Lubbock Midland/Odessa Abilene San Angelo San Antonio Laredo Omaha Wichita Wichita Falls Austin Dallas Waco Corpus Christi McAllen Minneapolis Kansas City Shreveport Beaumont Houston Milwaukee Cedar Rapids Springfield Ft. Smith Little Rock St. Louis Chicago Paducah Memphis New Orleans Grand Rapids Ft. Wayne Louisvile Nashville Detroit Chattanooga Columbus Atlanta Tallahassee Greensboro Charlotte Tampa Sarasota Naples Savannah Washington D.C. Raleigh Norfolk Wilmington Orlando Philadelphia West Palm Beach Miami Dover Hartford New York 11

13 V. New Business Unit Focus: Luminar Data

14 US Latinos outnumber the general market in most online activities as well as on total time spent online Internet usage (Avg. hours per day, 2012) Top online activities for Latino consumers (Percentage of survey affirmative answers, 2012) 46% 43% Latinos Non-Latinos 36% 28% 31% 25% 29% 29% 28% 28% 26% 24% 25% 25% 25% 24% 25% 30% 22% 6.6 hrs 5.6 hrs US Latinos US total 17% Source: iab, Hispanic Consumer & Digital Media, Oct Question: Which of the following activities do you regularly do for fun and entertainment while online. Nielsen, State of the Hispanic Consumer, Quarter Nielsen, State of the Hispanic Consumer, Quarter

15 Entravision offers sophisticated Big Data marketing & research solutions through Luminar Market analytics and insights In depth Latino consumer purchasing behaviors Big Data processing through 2,000 different data sources and 1,600 micro trends and behaviors Digital Media Interactions Transactional Data (POS, CRM, loyalty e-commerce) Relevant Analytical Models Cultural References Hispanics Sample Data View Luminar s View of Hispanics 14

16 Luminar Data Aggregate data is collected from over 2,000 transactional sources including the retail, finance, retail loyalty programs, auto and publishing sectors Proprietary analytics & algorithms are applied to the data and score the records which are most likely to be Hispanic / Latino Key to this is that the data is transactional. The records are defined as culturally Hispanic not just that they speak Spanish Consumer This offline transactional data and scoring is then onboarded and transferred into cookies which can then be used to targeting web ads Consumption Behavior Consumer Household-level Characteristics Analysis Hispanic Consumer 15

17 Case Study: Regional Honda Dealership Goal to reach US Hispanic/Latino Customers for the Spring Into Honda Sales Event Utilize Luminar Audience Platform to drive users to the TriHonda site 16

18 Combining Luminar Data for Better Results Retargeting plus Luminar Data Yields Stronger Results Luminar s data helps to inform how aggressively to bid on the Trade Desk to purchase the ad space Using both gives two reasons to identify that the user is of value: 1) That they ve been at the client website 2) They are culturally defined as Hispanic/Latino This combination of data yielded stronger results 17

19 VI Opportunities

20 2010 World Cup Revenue 2010 WORLD CUP REVENUE (in millions) DIVISION Q1 Q2 Q3 Q TV $0.0 $4.1 $1.2 $0.0 $5.3 RADIO $0.0 $1.7 $0.4 $0.0 $2.1 TOTAL $0.0 $5.8 $1.6 $0.0 $ WORLD CUP REVENUE (in millions) DIVISION Q1 Q2 Q3 Q TV $0.0 $5.4 $1.4 $0.0 $6.8 RADIO $0.0 $1.8 $0.3 $0.0 $2.1 TOTAL $0.0 $7.2 $1.7 $0.0 $8.9 19

21 Political Net Revenue Entravision Political Net Revenue, (USD Millions) TV Radio % of Total Net Revenue: 2% 0% 3% 0% 4% 0% 7% 20

22 2014 Political Races OFFICE STATE/MARKET INCUMBENT PARTY STATUS Governor Arizona Jan Brewer Rep. Termed Out California Jerry Brown Dem. Colorado John Hickenlooper Dem. Connecticut Dan Malloy Dem. Florida Rick Scott Rep. Massachusetts Deval Patrick Dem. Retiring Nevada Brian Sandoval Rep. New Mexico Suzanna Martinez Rep. Texas Rick Perry Rep. Open Race U.S. Senate Colorado Mark Udall Dem. Massachusetts John Kerry Dem. New Mexico Tom Udall Dem. Texas John Cornyn Rep. Virginia Mark Warner Dem. U.S. Congress All 435 seats are up State Senate Races Varies by State State Assembly/House All races - Elections every two years. 21

23 VII. Q1 Financial Overview

24 Q Financial Results Total Revenue up 7% versus Q1 13 Consolidated Adjusted EBITDA up 12% versus Q1 13 Core Television Revenue: Up 3% (ex poli, retrans) Core Radio Revenue: Up 5.4% (ex poli) Free Cash Flow: Up 172% $ IN MILLIONS Q Q % CHANGE VS Q Television $31.0 $26.7 4% Radio % Retrans % Total Revenue $52.7 $49.1 7% Operating Expense (1) % Corporate Expense (1) % Consolidated Adjusted EBITDA $15.0 $ % Source: Management. (1) Excludes non-cash compensation 23

25 Free Cash Flow Entravision Free Cash Flow, 2009-YTD 2014 (USD Millions) Q1'14 FCF per shares- BASIC FCF per shares- DILUTED $0.17 $0.22 $0.13 $0.41 $0.45 $0.11 $0.17 $0.22 $0.13 $0.40 $0.45 $

26 Capital Structure As Of March 31, 2014 $ IN MILLIONS ACTUAL Cash $47.1 Term Loan B $363.1 Other Debt $0 Total Debt $363.1 TTM Consolidated Adjusted EBITDA $74.6 Total Leverage Per Credit Agreement 4.6x Maximum Allowable Leverage 7.00x 25

27 26