Good afternoon, and welcome to the Entravision Communications Third Quarter 2012 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Walter Ulloa. Please go ahead.

Thank you, Drew. Good afternoon, everyone, and welcome to Entravision's Third Quarter 2012 Earnings Conference Call. Joining me today on the call is Chris Young, our Executive Vice President and 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 risks and uncertainties that could impact actual results. This call is a property of Entravision Communications Corporation. Any redistribution retransmission or rebroadcast of this call in any form, without the express written consent of Entravision Communications Corporation is strictly prohibited. Also, this call will include certain non-GAAP financial measures. The company has provided a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures in today's press release. The press release is available on the company's website and was filed with the SEC in a Form 8-K. Our third quarter results demonstrate our success in executing our growth strategy and monetizing both our core and digital assets. We generated solid political revenues in the quarter as a result of our strong competitive position in markets located in key swing states. The operating environment for our core television and radio assets has continued to improve, while our digital platform has continued to grow, and we have further strengthened our integrated advertising capabilities. This effort has put us in a very good position to continue to benefit, as more and more advertisers seek to reach Latino audiences. Turning to our financial results for the quarter. Our consolidated revenue was $58.5 million, up 17% over the third quarter of last year. Operating expenses increased 5% to $32.9 million in the quarter, as we continued to invest in our…

Thank you, Walter, and good afternoon, everyone. As Walter has discussed, net revenue for the quarter was $58.5 million, up 17%. Operating expenses increased 5% to $32.9 million and consolidated adjusted EBITDA increased 43% to $21.6 million. Net revenue for the quarter was up 17% to $58.5 million compared to $50.1 million in the same quarter of last year. TV net revenue was up 22% to $40.9 million for the quarter compared to $33.6 million in the same quarter of last year. Radio net revenue was up 6% to $17.6 million for the quarter compared to $16.6 million in the same quarter of last year. The increase in our TV segment was primarily attributable to an increase in political advertising revenue, which was not material in 2011, core advertising revenue and retransmission consent revenue. Excluding retrans and political revenue, core TV advertising revenue was up 10% for the quarter. The increase in our radio segment was primarily attributable to an increase in core advertising revenue and political advertising revenue, which was not material in 2011. Excluding political revenue, core radio advertising revenue was 3% -- plus 3% for the quarter. Retrans consent revenue for the quarter was $4.9 million compared to $4.2 million in the same quarter of last year. Retransmission consent revenue for the year will be approximately $20 million. Operating expenses for the quarter were $32.9 million, up 5%, excluding noncash compensation expense, operating expenses for the quarter were $32.6 million, up 5%. The increase was primarily attributable to variable expenses relating to the increase in net revenue and an increase in salary expense. Corporate expenses for the quarter were up 15% to $4.5 million compared to $3.9 million in the same quarter of last year. Excluding noncash compensation expense, corporate expenses for the quarter were $4 million, up 10% compared to $3.6 million in the same quarter of last year. Excluding noncash compensation, the corporate expenses increase was primarily attributable to the increase in salary expense, interactive and an increase in bonus accrual for the period. Free cash flow, which we define as consolidated adjusted EBITDA, less CapEx, cash interest, cash taxes and dividend payments, plus interest income, increased 147% to $10.5 million or $0.12 per share for the quarter. Cash interest expense for the quarter was $8.1 million. Cash, capital expenditures for the quarter was $2.9 million. CapEx for the year will be approximately $10 million. Turning to our balance sheet. As of September 30, 2012, our total debt was $363.8 million and our trailing 12-month consolidated adjusted EBITDA was $65.9 million. Our total debt-to-EBITDA, as adjusted, was 5.5x. Cash on the books was $45.2 million at September 30, 2012. Net of cash on the books, our total net leverage was 4.8x. This concludes our formal remarks. Walter and I would be happy take your questions. Drew, I'll hand it over to you.

[Operator Instructions] The first question comes from James Dix of Wedbush.

Just a couple of things. Obviously, political is -- was strong in the quarter and it looks like it's going to be a blow out for the year. Do you have any sense, just given the challenges of this hedging inventory, how incremental we should be thinking about that across the TV and the radio segments? And then I had one follow-up.

I would say, James, that the political revenue is, for the most part, I would say, 95% to 100% political -- incremental, excuse me, and that's because we've done such a great job of managing our inventory. So we have not taken, as you noted, a huge volume of political advertising at the cost of our core business. And I think the proof of that is the 10% growth in core television and the 3% growth in core radio. We're very proud of our core growth in third quarter. Certainly, we think that the political revenue received is fantastic and we've always talked about the growth of the Latino voter electorate and the 4 swing states that we operate in. We knew we were going to have a good year in political, but it turned out to be even a better year than we expected. But we've done a great job of managing inventory.

Great. And I guess that kind of my second question. As you look into October's results, are you seeing -- what's driving that strength in the core business for both TV and radio? Are you seeing any change in the composition of advertisers? And do you have any sense that there's going to be any advertisers who were kind of crowded out, or just decided on their own to sit out the political season, who are going to come in after the elections?

Well, I'll just make a couple of comments to that question, and Chris may have something to add. But we don't give a future pacing on these calls, but we do talk about actuals and we just completed October yesterday, so we were frantically assembling the numbers today. But the key category that remains strong into October, besides political, is automotive, and that's all I have to report to on right now. To be frank, we haven't really looked beyond automotive. We're just, again, just trying to come up with some numbers here for everyone that we could share with you. But automotive remains strong as we go into -- as we -- as noted from our October numbers I just gave you.

Yes, I think, James, from a category perspective, we would expect to see more the same of what we saw in third quarter from a category perspective. In TV, we had 8 out of the top 10 categories showing improvement year-over-year. In the third quarter, and like I've said -- I said at the last conference, we're just -- we're feeling good about the business and we're seeing that continue into the fourth, so...

The next question comes from Michael Kupinski of Noble Financial.

The -- I just want to verify, you had mentioned that you believe that political is going to be $16 million for the year?

That's correct, Michael, $16 million.

Okay. That's substantially more than what I was looking for and I would imagine most of that is in television at this point?

That's correct.

Do you have the variance?

Right. It's mostly in television.

It's about a 5.5 to 1 ratio, turn.

Okay, yes. In terms of your core, you did so well in that core like you had mentioned in terms of the third quarter, I suppose, do you -- given that huge influx of political in the fourth quarter in television, do you still think that you'll have that -- the core being fairly robust like you had in this last quarter?

Well, all we can point to is the 10% core growth in October for TV and the 4% growth for radio in October in core. And as you know, October was just a huge month for political. So we feel good about the continued strength of our core business through the rest of the quarter.

It's still a little too early to maybe look out too far into the future, I suppose, but how do -- how does the business look absent the political as you go into December?

Like I said, it looks steady, it looks good. That's all I really want to say about it, other than what I've given you in reference to our October results.

I understand. In terms of the auto category, you mentioned that your auto category remains robust and I was just wondering, a number of other broadcasters were saying that that's been largely fueled by foreign auto manufacturers. It looks -- is that what you're seeing as well, whereas General Motors looks like they've kind of not -- are not spending as much and that might be an opportunity as we go into 2013?

Well, as I said about our automotive revenue for television, it was pretty broad-based. We had strong advertising from 8 of the top brands and that included domestic, as well as foreign. And the television revenue from automotive is, by far, the largest portion of our total automotive revenue. But radio, as well, was broad-based in terms of the advertisers that came into our business in the third quarter.

And obviously, you had some very strong results here and drawing up a lot of cash flow. Any early indications of what you might do in terms of a more aggressive pare down of debt [ph]? Any thoughts on -- what your thoughts on -- are on that going forward?

Well, I think the answer to that question is that we're committed to reducing our debt EBITDA leverage to below 5x. We've made significant progress throughout the year to attain this goal, and we believe that we should reach this goal in the near future once our debt leverage is below 5x. We intend to keep it there and going forward. And we'll achieve this reduction and leverage through a combination of debt reduction and EBITDA growth.

[Operator Instructions] The next question comes from Davis Hebert from Wells Fargo Securities.

So the 103 redemption on the tiered notes, is that something that's been discussed internally? I know Q4 is obviously political coming in. I don't think you have the coupon payments, so it should be a nice cash flow quarter for you guys. Is that something you can comment on?

That's right. I guess, the question is what we're going to do with respect to that 103 call option?

Right. And it's still -- is it $40 million? Is that the right fact?

It's $40 million. It runs -- the option window's open through next -- the end of next July. And we're looking at it, and we'll be calling the shots over the near term on what to do with it.

Okay, sounds good. And then if you -- you said $20 million of retrans for 2012. Do you guys have some contracts that are coming up for renewal that could bump that number higher next year?

We do all of our retrans deals -- they run through Univision, so Univision has been in the process of renegotiating some of their deals. But we're not going to give guidance beyond this year with respect to retrans, but Univision runs point on all that.

The next question comes from Howard Rosencrans of Value Advisory.

Can you give us -- well, pretty much all of the affiliates are suggesting that a lot of the numbers are so badly skewed because the political is doing -- is crowding out everything. What is your sense of, in light of your unbelievable auto numbers and the auto guys clearly -- and some of the other guys clearly did not get crowded out, are these meaningful -- are these representative, are they meaningful of what the sort of post-environment -- post-November 6 environment will look like? That's the gist of the question.

Well, Howard, we finished October at a plus 10 core and then plus 4 for radio, TV and radio, and again, the business feels good for the fourth quarter. We've been gearing up for this political season for years and inventory management is something that we had been stressing with our management team for quite some time. So we were ready for this and we've been talking about it publicly for about a 1.5 year, and we were ready for it from an inventory management standpoint. I think that's in part why you're not seeing the crowding out factor like you're seeing with some of the English-language folks. And keep in mind also on the English-language side, that political revenue is almost 20% of their total top line. We're not quite there yet, so they're having to deal [ph] with a much more meaningful level of volume with respect to their spot inventories. So that's also a factor that's come into play. But the business, as far as core is concerned for both platforms right now, feels generally solid.

As I see no other questions, this concludes our question-and-answer session. I would like to turn the conference back over to Walter Ulloa for any closing remarks.

Thank you, Drew. Thank you, everyone, for participating on our third quarter conference call. We look forward to reporting our fourth quarter and full year results, 2012 full year results, in our first quarter conference call in 2013. Thank you, again.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.