Good afternoon, and welcome to the Entravision Communications Second Quarter 2014 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, Gary; and good afternoon, everyone. Welcome to Entravision's second quarter 2014 earnings conference call. Joining me today 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 the 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 on Form 8-K. During the second quarter, we generated strong advertising growth across our broadcasting assets while making further progress expanding our omnichannel capabilities and strengthening our ability to deliver targeted Latino audiences to our advertising partners. We are gradually transforming our organization by strategically and efficiently extending our digital footprint and related marketing solutions capabilities through internal development and opportunistic acquisitions. In turn, we have strengthened our ability to better serve advertisers who want to influence Latino consumers. We're building on our core broadcasting operations and creating a more robust multichannel platform that allows us to deliver, interact with and better measure Latino audiences. These efforts are improving our ability to open doors at major brands and increasing our revenue profile. Turning to our results. During the second quarter, our consolidated revenue was $61.8 million, up 9% compared to the second quarter of last…

Thank you, Walter; and good afternoon, everyone. As Walter has discussed, net revenue for the quarter was $61.8 million, up 9%. Operating expenses increased 5% to $35 million, and consolidated adjusted EBITDA increased 11% to $22.1 million. During the second quarter of 2014, the company declared and paid a cash dividend of $0.025 per share to shareholders of the company's Class A, Class B and Class U common stock. The total amount of cash disbursed for the dividend was $2.2 million. The company also announced today that the Board of Directors has declared a quarterly cash dividend of $0.025 per share to shareholders of the company's common stock payable on September 30, 2014. The total amount of cash to be disbursed for this quarterly dividend will be approximately $2.2 million. For the quarter, TV net revenue was up 9% to $43.2 million compared to $39.6 million in the same quarter of last year. The increase in our television segment was primarily attributable to advertising revenue from the World Cup and retransmission consent revenue. Radio net revenue for the quarter was up 8% to $18.7 million compared to $17.4 million in the same quarter of last year. The increase for radio was primarily attributable to advertising revenue from the World Cup. Retransmission consent revenue for the quarter was $6.8 million compared to $5.7 million in the same quarter of last year. Retransmission consent revenue for the year is now estimated to be approximately $26.5 million. OpEx for the quarter was $35 million, up 5%. Excluding noncash compensation expense of $0.1 million, operating expenses for the quarter were $34.9 million, up 5%. The increase was attributable to an increase in salary expense, employee benefit costs and payroll taxes associated with the increase in salary expense. Corporate expenses for the quarter were up…

[Operator Instructions] And our first question comes from Michael Kupinski with Noble Financial.

So the numbers came in a little lighter than expected, given the World Cup being in that quarter. The World Cup numbers that you gave in terms of the $7.2 million that you booked in the quarter was pretty much in line with the guidance that you gave earlier with the last quarter. I was wondering if you might be able to update us on, since the World Cup is over, what you were able to book for the World Cup this year?

Well, Mike, I think the best answer I can give you is that -- is the information we gave you today because that's actual information. And by that, I mean, that third quarter we're still in it, and we had about 25% of our revenue -- World Cup revenue fall in July. So we're still -- we haven't rolled up those numbers yet. We've got a rough estimate of what they are -- not a rough estimate, a pretty good estimate, but we don't want to publish them until we're absolutely -- until the quarter is over, and we know exactly where we fell.

So I was just wondering in terms of the World Cup, were you happy with the numbers? I mean, if the -- obviously, July being a little bit -- you still have got quite a bit to book yet in July. Were you happy with the numbers?

We were I would say extremely happy with the numbers, not only revenue, but also our ratings performance. I will add though that our core TV advertising revenue and radio, but more TV, was heavily impacted by advertisers focusing their spending on World Cup and reducing their spending in other quarters, meaning the second quarter and -- and we haven't -- like I said, we haven't seen third quarter yet, but we know that advertisers moved money from third into second for the World Cup.

Okay. So they shifted their budgets a little bit?

Exactly.

So -- yes. So in terms of the -- like did you notice that there were any particular differences between large market stations versus smaller market stations, and we're talking specifically television?

Well our large market station always -- they're always pulling the lion's share of this event-like programming, World Cup being the most significant event. But certainly, our large markets, and by that, I mean, San Diego, that's a very large market for us; Washington, D.C...

Not specifically about World Cup. I'm sorry, Walter. Not specifically about World Cup, but just in general in terms of a little bit of the sluggishness. Obviously, we're looking for a little bit stronger revenue performance in television. Did you notice that your larger market stations performed better or worse than your smaller market stations?

I think the best answer I can give on that -- with regard to that question, Mike, is that it was pretty even. I don't think there was any -- I know that our Florida station didn't do as well as we'd want them to. Las Vegas was a little soft in terms of our big market stations. But, overall, it was pretty even in terms of how the spend came in.

And I'd say that national did well for us to the extent that they expense in the World Cup. But I think if you look at our core -- if you look at our advertising outside the World Cup games, national was choppy. And those folks that did spend on the World Cup, what they ended up doing is they took a lot of what they spent last year and they just piled it up into the World Cup tournament and did not spend in non-World Cup spot. And that was part of, I think, somewhat -- that was somewhat disappointing to see as the quarter turned out.

The other thing I would point out too, Michael, is even though the World Cup is a -- it's a premier world sporting event we do get a lot less inventory in those 2 hours than we do in our general programming. We just do, so -- and that had an impact as well.

So if the advertisers were[indiscernible] possibly in the third to the second, are you seeing a little softness in the third? Or are you seeing things kind of -- general market improve? What are the general trends, not specific pacings but just the general trends?

Well I think the general trends -- I mean the third quarter is always -- it's always a challenging quarter because of the summer months and vacations and people out of the office, et cetera. But in our case, we believe that a lot of money was redirected at World Cup and, hence, is making our third quarter perhaps a little more challenging than in the past. But I would say -- but I do want to say, Michael, before we conclude here that we expect about 65% of our political advertising to hit in September, and that'll probably start in -- late in August. We haven't really seen it fall in yet, but we do know -- we have it identified. And so 90% of our political revenue will hit in the third and fourth quarter, basically September and October, with 60% of that being -- 65% being we -- will see in September.

The next question comes from Amy Yong with Macquarie.

Two questions. First, can you talk a little bit about some of the competition you're seeing out in the TV space? And I guess, specifically, looks like Telemundo's ratings are actually improving a little bit. Are you seeing any budget shift to your competitors at all? And the second question is on Pulpo. Do we expect that still be incremental to EBITDA in '15? And what should we be expecting in terms of incremental OpEx cost as you build out your digital platform?

As it relates to the first part of the question -- repeat that again, just the first part of it.

Telemundo.

Oh, Telemundo. We all know that Telemundo's ratings have improved. We've seen increased competition in our markets as a result of the Telemundo ratings improvement but -- and we've gone through these periods before in our history, as had Univision -- or as has Univision. And the point is that Univision programming is the most consistent, the most quality Spanish-language programming in the country. And even though maybe there's been a little bit of a slowdown in ratings, we expect to bounce back here in a major way. In fact we are already seeing that in -- with the recent Novela Block. So we'll continue to outperform our competitors in our markets.

As far as the second question is concerned on Pulpo, we expect the Pulpo transaction to be accretive to Entravision on a cash flow multiple basis in 2015. If you're looking Q3 -- Q2 had, I think, about 1.5 weeks of Pulpo numbers in there, so there's nothing material in Q2 to speak of. For Q3 and Q4, when you're modeling out, I think the right benchmark to use -- it's about $3 million in operating expense per quarter for each of Q3 and Q4. We're right now looking into breaking up Pulpo and our Luminar assets separately, and we'll have an update waiting on the next earnings call on that front.

The next question comes from Tracy Young with Evercore.

Just a follow-up question on the flat pacing that you're seeing. You did mention at the beginning of the call that auto was quite strong. I mean it's a little surprising that you're seen -- you're just seeing this flat pacing. So any guidance that you can provide and that would be extremely helpful. And then, again, just in terms of the digital, is that still flowing through radio at this point?

It is. It's still deploying through radio. On the pacing front, really, auto continues to trend well for third quarter. That's not our problem category. We're seeing particular weakness in telecom. We're seeing weakness in retail. Travel and leisure is another group that we're seeing weakness. All for very specific large vendor issues that we're working the cycle through. But national, I don't think that has been the case across the industry. National has been very choppy. And you've got macroeconomic events that are out there that are serving as a distraction, and we're trying to drive ourselves through it.

[Operator Instructions] The next question comes from Larry Haverty with GAMCO.

Walter, could you perhaps detail your expectations on political and are any states looking especially good in that category?

Sure, Larry. I mean, I think what we told the market since the beginning of the year is that we did about $7 million of political in 2010 and that we expect to grow that revenue by 20%. Now we -- big states for us and competitive states include Florida, Colorado, certainly, will be big in terms of revenue growth in political. California also has some potential. New Mexico. Texas, certainly, there with the governor race. We think 1 of the things that certainly continues to help us and we certainly are supportive of getting more Latinos to the polls and more -- and the Latino vote is having more success in terms of deciding the outcomes in some of these states with 5% or 6% -- representing 5% to 6% of the votes. So we certainly saw that in 2012 when we doubled our political revenue from $8 million to $16 million. Now we don't expect to do that this year because it's a midterm, but we do expect increases, as I've described them, and we continue to be positive about the Latino voter turnout.

The next question comes from James Dix with Wedbush Securities.

I guess 2 things. You obviously had the World Cup in 2Q and in the beginning of 3Q, and that's 1 of your bigger marquee events, where there's always this question as to how incremental that revenue is. And I know in the past, we've talked about how difficult that can be, and sometimes you look back after an event and try to make an assessment to see who came in for an event and who didn't. But how do you think about that for big sports events, like the World Cup, versus political or even some new categories like Affordable Care Act? I guess, this probably won't be quite new. It'll be the second year on that. But are there any learnings that you'd share with us in terms of thinking about that, certainly, for the World Cup, but then political, which is, obviously, going to be a big thing in the second half of the year. And then, secondly, if Univision does some type of strategic transaction whether it's an IPO or a sale or anything else, do you see anything that Univision does there having much strategic implication for you?

I'll take the second part of your question, James. I mean, it's hard to say whether anything Univision does will have a strategic -- some type of strategic value for us. I mean, I'll just add that we continue to have a close relationship with Univision. We're always talking to each other about how we can improve each other's asset base. Nothing specific to discuss certainly on this call or anything specific that we've outlined for ourselves. But that's a conversation we're always having with them about strategic assets going forward. Chris you want to answer?

Yes, as far as the incremental is concerned, the political issue incremental is really a function of a lot of inventory getting sucked up by political advertising, and then you have to figure out who -- how many -- how much in advertising actually got displaced from folks who just didn't want to advertise during the political high season. That's a tricky model to go through, and we've attempted to throw out numbers on earnings calls with respect to incremental and political. There's always kind of -- it's always kind of fuzzy math. What happened in the World Cup though, I think, was more a function of the advertising environment that we're in. I think what a lot of -- everyone got the importance of World Cup as far as reaching our targeted audience. But what they decided to do was -- what we were hopeful they were going to do is hang onto or continue to spend the same amount of money, if not more, in non-World Cup advertising and then add to that a significant chunk to World Cup advertising. And what they ended up doing was pretty much the opposite. They ended up taking the bulk of what they spent last year as part of our core -- their core budget, and they ended up spending on the games. So TV incremental advertising for World Cup ended up being around 30%. For radio, it ended up being around 20%, and that was the key -- if there was 1 big disappointment in the quarter, that was it. And going back to the political issue, for the English-language folks, on political high season you'll have 20% or 25% of your revenue being driven by political. We're not there yet. We're catching up, I guess, is the right way to put it. But we're not -- last -- in 2012, I think 9% of our total advertising was political. We're still a long way off from getting that incremental calculation up to what the English-language guys are showing. I don't know if that's helpful.

Yes. Just because -- that 9% was for the TV platform in particular.

That's right.

Was that all then? Okay. That was just 9% of TV revenue in 2012 was [indiscernible]?

Right, which is approximately half of what the English-language guys get in a political year.

As there are no further questions, this concludes our question-and-answer session. I'd like to turn the conference back over to Walter Ulloa for any closing remarks.

Thank you, Gary; and thank you, everyone, for participating in our second quarter earnings call. And we look forward to speaking to all of you in November when we give our third quarter earnings results.

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