Good day and welcome to the Entravision Communications Corporation Third Quarter 2014 Earnings Conference Call. All participants will be in listen-only mode. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Walter Ulloa, CEO. Please go ahead.

Thank you, Andrew. Good afternoon, everyone. Welcome to Entravision’s third quarter of 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. Our third quarter results were driven by continued growth in retransmission fees as well as political advertising and the benefit of the 2014 World Cup. We generated solid year-over-year growth in consolidated adjusted EBITDA as well as earnings per share and free cash flow. We also furthered our transition from traditional broadcaster to an integrated multi-platform company, complete with expanded digital capabilities and marketing and targeting solutions. This has allowed us to strengthen our ability to target and deliver Latino consumers to advertisers across TV, Radio, Online, Social and Mobile. We continue to return capital to shareholders in the form of a quarterly dividend and during the quarter, our board of directors approved a $10 million stock repurchase program. Turning to our results, during the third quarter, our consolidated revenue was $62.4 million, up 8%, compared to the third quarter of last…

Thank you Walter and good afternoon everyone. Beginning this quarter, we are presenting our financial results in three reportable segments; TV, radio, and digital media. On June 18, 2014 we acquired Pulpo Media and as of the third quarter 2014, we separated the results of Pulpo and our existing Luminar data business into a new operating segment, digital media, which we believe enhances our investors’ ability to evaluate our three separate operating platforms. As Walter has discussed, net revenue for the quarter was $62.3 million, up 8%. Operating expenses increased 6% to $35.9 million and consolidated adjusted EBITDA increased 5% to $20.8 million. During the third 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 Bs and Class U common stock. The total amount of the cash disbursed for the dividend was $2.2 million. Also as part of the previously announced $10 million share repurchase program, the company repurchased $800,000 shares of Class A common stock for approximately $3.5 million in the third quarter of 2014. As of October 31, 2014, the company has repurchased the total now of 1.6 million shares of Class A common stock for approximately $7 million at an average purchase price of $4.48. For the quarter, TV net revenue was up 4% to $41.3 million compared to $39.7 million in the same quarter of last year. The increase in our TV segment was primarily attributable to advertising revenue from the World Cup and increase in political advertising revenue which was not material in 2013 and an increase in retrans consent revenue. Radio net revenue for the quarter was relatively flat at $18.1 million compared to $18 million even in the same quarter of last year. Our new Digital Media segment generated…

We will now begin the question-and-answer session. (Operator Instructions) The first question comes from James Dix of Wedbush Securities. Please go ahead. James G. Dix – Wedbush Securities, Inc.: Good afternoon, guys. Just a couple questions on the ad environment and then one on just M&A. I guess in terms of your fourth quarter outlook, I think a quarter ago when you talked about the third quarter, you talked about the potential for – I think you had flat pacing to improve a bit – looks like it did. What’s your take on the chance for the fourth quarter pace to move around a bit, especially now that the election is over? And then, I guess, I’ll just follow up in turn.

Jim, just a quick comment on that. I mean, we have seen some improvement here in the last few weeks in national. It has started to improve slightly. We expect that improvement to continue as we head into the second half of the quarter. Certainly, political was very strong in October as you can imagine. But overall, our actual pace right now for fourth is better than it was for third.

That’s right. James G. Dix – Wedbush Securities, Inc.: Okay.

The broadcast properties right now are pacing all-in with political up mid-single-digits. So we’re in a better position now than we were at the call looking out for third quarter at this point. James G. Dix – Wedbush Securities, Inc.: Right.

I mean, if you look across the revenue streams, two areas where we’re showing improvement, local TV and if you’re looking out October, November, to December – seems to be progressing nicely. The problem with local TV is national TV doesn’t seem to be showing the same trends. National radio is also a very good story. National radio continues to improve month-by-month as we get deeper into the quarter. So those are very good signs. James G. Dix – Wedbush Securities, Inc.: Okay, great. And then you mentioned one category that was a tough comp on the national side, the Affordable Care Act. I mean, what’s your outlook for that now? I mean, because we are beginning our second renewal of enrollment cycle with this quarter. What’s your thinking about that and then I guess the healthcare category generally being stimulated by that or not?

Well, it remains a category with a significant gap of investment. As compared to last year, this year, for example, the Affordable Care Act is pacing at about minus 27% with $4.2 million versus $5.8 million in the prior year. So it’s a significant gap there, as a result of less spending on the Affordable Care Act by insurers and the medical community.

I think this time around last year, you saw a ramp up, you saw some healthcare money start to come in, in the third quarter. Early in the fourth quarter, it really hit hard. I think this year you’re going to see the healthcare folks hold off a little bit until later in the stage. Perhaps in early December we should expect healthcare to pickup, but right now, healthcare is not doing anything what it did at this point last year just because it was a unique one-off item. James G. Dix – Wedbush Securities, Inc.: Okay, great. And then just on auto and that’s the last of my ad questions. We’ve heard from various people in the TV universe about the health of auto both nationally and locally. What’s your outlook now for it versus what you’ve seen so far this year? You give pretty good color on the tiers, but I’m just wondering what you’re thinking about auto going forward, especially with strong auto sales with some guys saying that’s not flowing through at least to some of the general market spending as much as they might have thought?

Right. Well, overall for auto in the quarter we were up a little over 2%, but prior to this quarter, we’ve had as you know, we’ve reported very healthy automotive growth through the year. Certainly the amount of political advertising that we had come through in September may have may have contributed to less auto for us in this quarter, but our core growth, even though it picked – it was up slightly, Nissan, Toyota and Honda lead the way, while Audi and Volkswagen were new brands and General Motors increased its investment in the Texas region. So I think overall I think we’ll continue to pick, we will get back to better growth as it relates to auto. We certainly see that as we’re looking towards the end of the year as well into 2015. James G. Dix – Wedbush Securities, Inc.: Okay. So no real concerns of like slipping into the negative category like some broadcasters have?

Yeah, well the auto right now is pacing flat to slightly negative as we sit here today. But some of that business could have been just displaced by some of the political activity that we’ve been going through the past month. And we’re pretty optimistic – at least we’re fairly optimistic I should say that we can break back into deposit territory, but still a ways to go yet.

We had such strong automotive advertising in the first half of the year that we’re not surprised at the slowdown slightly here, but we do expect it to rebound in 2015. James G. Dix – Wedbush Securities, Inc.: Okay. And then I guess just lastly, what’s your thoughts now on the M&A environment, both in terms of broadcast properties as well as potentially other extensions maybe in the digital area. Just what are you seeing out there and is that something where we should expect some activity over the next 6 months to 12 months?

Well, we haven’t spent much time looking at broadcast assets. But just, right now, I think that activity slowed down quite a bit and there weren’t that many assets that fit our profile and our strategy to begin with when the market was especially hot as it relates to broadcast assets. But we believe digital is our area of growth. We’re constantly evaluating opportunities in digital. We think that Pulpo is a terrific fit for us. It’s our strategic core assets in television, radio, our radio network. Luminar, it expands our digital assets and allow us to become the largest Latino digital ad network. We’ve been able to extend our reach into Latin America, diversifies our core assets, our broadcast assets now have been diversified with this high growth digital asset. And finally, it adds significant digital revenue as a portion of total revenue. So we expect to be able to grow that category here well into 2015 and beyond. James G. Dix – Wedbush Securities, Inc.: So, is the majority of your digital revenue at this point coming from Pulpo?

Yes, it is. It is at this time. James G. Dix – Wedbush Securities, Inc.: Okay. Great, thanks very much.

Thanks, James.

The next question comes from Michael Kupinski of Noble Financial. Please go ahead. Michael A. Kupinski – Noble Financial Capital Markets: Thanks for taking the question. A couple of quick ones. In terms of the radio division, I know this is a smaller segment for you guys, but it had started off pretty strongly earlier than the year, then we saw some deceleration in the third quarter. And I was just wondering, I think that large portion of that growth was probably due to if I recall, and I was just wondering, did this suffer from the weak national advertising in the quarter or did it run through some competition or is it just cycling against its strong ratings? I mean, can you give us some thoughts on that particular program and how it relates to the total radio revenues and the (indiscernible) as it goes into the fourth quarter?

Well, couple of comments from at least my point of view. One, that we continue to invest in content, and we think that that’s very important to us in many areas including our radio business, digital business, as well as our TV business. We – our content continues to perform well. It takes time to build up the audience, but that we’re certainly pleased with our results. In radio – in national for the most part we’ve had a pretty good year. Certainly, our network and national sales business has been strong. But we have struggled in Los Angeles. That said, we’ve turned that around. We turned it around late in the third quarter. We’re now starting to see the results of the ratings increase in Los Angeles and I spoke about here in my comments. And we are seeing the revenue as well as ratings continue to improve with our Los Angeles cluster. So we’re pleased with the way our radio business is performing, especially pleased about our national sales and network sales area.

Yeah. We seem to be executing on the radio side as far as content is concerned, and the local markets got a little bit choppy for us in the third quarter and that’s the one of the big reasons why you saw the lack of growth, I’ll call it. But it’s the content executions there over a national scale. Our national guys are getting it done and you’ve got LA ratings now, which take time to convert – to monetize, from when you get the ratings. But seeing either number two and number three in LA at the cluster is an achievement that we’re going to make monetize over the next couple quarters, so... Michael A. Kupinski – Noble Financial Capital Markets: Just following up on the question earlier about the M&A environment. Are you guys interested in the Disney stations at all or portion of those? Is that on your radar screen or are you concentrating more still on the digital side?

No, I would say Mike that that’s on our radar screen. We are concentrating more on the digital side. Michael A. Kupinski – Noble Financial Capital Markets: Okay.

But if there were a broadcast opportunity that really fit our strategy going forward, then of course we take a look at it. But right now most of our focus is on digital. Michael A. Kupinski – Noble Financial Capital Markets: And any updates on the negotiations with Univision about your expanded or – well, any updates on Univision regarding the retransmission proxy. Has there been any expansion in terms of expressions with them beyond just the retransmission? Are there anything that you can provide us regarding those discussions?

Well, let me just say that we have a great relationship with Univision and we’ve had that relationship goes back since we started the company in 1995. So we have had different discussions over the past year and I am sure they will probably heat up here as we head into the end of the year. But we expect to – whatever we have agreed to, we expect that both parties will come together and it’s obviously mutually beneficial for both of us to reach an agreement. Michael A. Kupinski – Noble Financial Capital Markets: And I just want to kind of clarify going into the fourth quarter in terms of the pacings. What you’re saying is that – are you seeing auto in other key categories strengthened from the third quarter into the fourth quarter? It just doesn’t seem like its robust, but it is strengthening, is that what you’re saying?

No, we’re not saying that necessarily. Auto as a category is pacing down right now. A big part of what we’re seeing as far as the improvement in the pace, we said we were up mid-single digits. A big driver of that is political, Michael. Michael A. Kupinski – Noble Financial Capital Markets: Okay.

If you took out political, our pacing is down mid-single digits, and that’s broadcast only; that’s not including our digital and it’s not including retrans. Michael A. Kupinski – Noble Financial Capital Markets: Right. Right.

But Mike... Michael A. Kupinski – Noble Financial Capital Markets: So, you’re actually weaker.

Right. What we have seen is that as we moved into the quarter here the last few weeks, that there has been an improvement in digital, generally, from where we were when we started the quarter. But now that we’re through the political cycle, we believe that the improvement will accelerate. Michael A. Kupinski – Noble Financial Capital Markets: Okay. All right. Perfect. I think that’s all I needed. Thank you.

Thanks, Michael.

(Operator Instructions) The next question comes from Brian Warner of Performance Capital. Please go ahead. Brian Warner – Performance Capital: Hi, guys. Thanks for taking the call, or the question. Just a quick question, could you sort of give us a high-up view on what your thoughts are regarding the spectrum auction – sort of particularly interested – sort of strategically maybe you could sort of frame some of the parameters that you’re thinking about because it seems like you’re in a sort of a unique situation.

Well, we like others in our industry have taken a good look at the Greenhill report and we’ve assigned some people here to continue to review it and to monitor the FCC’s progress as it moves towards the spectrum auctions in 2016. I mean, I think we all recognize the fact that the FCC has been successful in engaging broadcasters in the values of, or the perceived values of what these broadcast properties may be valued at or the spectrum may be valued at going forward. But we don’t believe that – I mean the goal, these valuations are based upon the FCC clearing 126 MHz. We think that that’s going to be very difficult to do, and therefore that the spectrum amount that the FCC will be recapturing will directly affect the total value of the forward auction. So, we continue to look at it; it’s interesting, it’s an opportunity that certainly we have a responsibility to our shareholders to look at and we’ll continue to study it. Brian Warner – Performance Capital: Fair enough. Thanks very much.

Thanks, Brian.

The next question comes from Gordon Hodge of Tracker Research. Please go ahead. Gordon Hodge – Tracker Research: Good afternoon, Walter and Chris.

Good afternoon.

Hey, Gordon. Gordon Hodge – Tracker Research: Question related to spectrum, just wondering if you wanted to – if in evaluating it you thought there was an opportunity to channel-share with one of your duopoly stations. Is that – and maybe you haven’t gotten into this that far, but I’m curious is that something that would require Univision’s approval, for instance if you would have moved from a UHF or a full power to a Class A for instance in a market and channel-share. Or is that something you would do on your own?

No. Anything that we do as it relates to what we refer to as the JSAs that we have with Univision duopolies in, now six markets. But anything that we do with those stations that we manage and operate and Univision owns, it would require their consent. And maybe that at some point we might have a conversation over channel-sharing going forward, but we haven’t at this point and we’ll see how we continue to review this opportunity. Univision is reviewing the spectrum auction as well. Gordon Hodge – Tracker Research: Sure. Gordon Hodge – Tracker Research: And we have no idea what their thoughts are in terms of how they’re looking at it.

But to be clear also, that says it applies to the Univision stations that we brought in UniMas. I mean, that does not apply to the non-Univision stations and we have a few out there. We do not have to go to Univision obviously to – if we’re thinking of doing something as it relates to the auction, we do not have to go to Univision.

Well, but I want to be clear that anything we would do around this auction would be with Univision’s, we’d collaborate with them in every way, which includes informing them of whatever plans we have. Gordon Hodge – Tracker Research: Yep. Okay.

That is how close our relationship is with them. Gordon Hodge – Tracker Research: Great. And then just a question again on digital. So, and I think you said that the revenue that you’re breaking out now is Luminar and Pulpo Media. So I gather there is meaningful revenue still digital related to the radio and the TV business and that we should not look for that to be broken out separately, but that’s still growing business I gather?

Well, I think over time the goal is to gradually put more and more of our digital business into that unit. But right now it’s correct, and the standard banners ads and advertising on our various websites and mobile for that matter will continue to be a part of both radio and TV digital. What the – Gordon, what the Pulpo acquisition has given us is that it’s strengthened our digital team significantly with the talent and management and digital expertise that comes with the acquisition. Justin Kuykendall, the COO of that company is one of the founder – he’s a founder of the company and one of the leaders in the team of digital. So – and there is a number of other people that come with the company there that are just terrific and very experienced in digital. So it strengthens our already existing digital management that we have, and in that acquisition there is some terrific technology, proprietary technology in marketing, planning, campaign management, real-time bidding, CRM. So one of our goals is to, as we integrate this company into Entravision is to be able to make sure that everything that goes into digital revenue as we classify it as digital is pure digital. And that’s what we’re working on as we speak here in this quarter. Gordon Hodge – Tracker Research: Perfect. And I’m glad that’s where you’re focusing from an M&A standpoint. So, I do think that’s the – where the growth is. So, thanks very much.

Sure, Gordon. Thanks.

Thanks, Gordon.

This concludes our question-and-answer session. I would like to turn the conference back over to Walter Ulloa for any closing remarks.

Andrew, thank you. This concludes our third quarter 2014 earnings report. We look forward to speaking to all of you in the first quarter of 2015 to provide you our fourth quarter and full year 2014 results. Thank you for participating.

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