Good day and welcome to the Entravision Communications 2015 Second Quarter Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Mr. Walter Ulloa, Chairman and CEO. Please go ahead.

Thank you, Carrie. Good afternoon everyone. Welcome to Entravision's second quarter 2015 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 expressed 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 Web-site and was filed with the SEC on Form 8-K. Now moving on to our review of the second quarter, we have reached the halfway point of the year and continue to see a positive with the progress we have made in executing our growth strategy as we expand our reach in audience across all media platforms and further advance our digital capabilities. Our reported results for the quarter, particularly for our television group, were negatively impacted by the strong World Cup advertising revenue we generated during the second quarter of last year. That said, our audio properties including our radio station group and network delivered another strong quarter and once again we believe we outperformed the broader radio market. Our digital revenues continued to expand and we remain focused on further strengthening our unique digital platform and delivering to highly targeted and engaged audiences to our advertising partners. We also continued to…

Thank you, Walter, and good afternoon everyone. As Walter has discussed, net revenue for the quarter was $59.9 million, down 3%. Operating expenses increased 7% to $37.5 million and consolidated adjusted EBITDA was $16.8 million. During the second quarter of 2015, 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 $0.025 dividend per share to shareholders of the Company's common stock payable on September 30, 2015. The total amount of the cash to be disbursed for this quarterly dividend will be approximately $2.2 million. As previously announced, we currently anticipate making cash dividends on a quarterly basis in future periods. For the quarter, TV net revenue was down 16% to $36.4 million compared to $43.2 million in the same quarter of last year. The decrease in our TV segment revenue was primarily attributable to the absence of World Cup and significant political advertising revenue in 2015 compared to 2014 and a decrease in national advertising revenue partially offset by increases in local advertising revenue and retransmission consent revenue. Radio net revenue for the quarter was up 5% to $19.6 million compared to $18.7 million in the same quarter of last year. The increase in our radio segment was primarily attributable to increases in local and national advertising revenue, partially offset by the absence of World Cup revenue 2015 compared to 2014. Excluding the World Cup, our radio revenues were up 12.5% compared to second quarter of last year. Our digital media segment generated $3.9 million in revenue for the quarter. Unaudited pro forma revenue for Pulpo in…

[Operator Instructions] Our first question comes from Michael Kupinski of Noble. Please go ahead.

Given all the investor concern over pay-TV subscribers these days, I was wondering if you can indicate if you're seeing growth in pay-TV subscribers in your market, and maybe you might use this opportunity to give us an update on the progress of your discussions with Univision regarding your retransmission proxy?

Based on the information we have, Michael, we have not seen any change in the pay-TV subscribers in our markets. We've looked at it here last couple of quarters and it seems to be a little changed or in the change in cable subscribers in our markets here certainly over the last two quarters. As far as our discussions with Univision, they continue. We extended the proxy agreement that we are currently under and we are negotiating with them to try to reach an agreement that is certainly beneficial to both parties.

And correct me if I'm wrong, but the Company will need to identify its participation in spectrum auctions in the October timeframe with the FCC. Has the Company determined at this time how many markets that it plans to participate in?

The short answer is, no, Michael. We continue to do work on that front and the rules got voted in today, so we're setting now on a March 29 auction date and we continue to work on what the right strategy is to maximize potential value, but we've not made that determination as of today.

Okay, I'll let others ask questions. Thanks.

[Operator Instructions] Our next question comes from Yehuda Miller of Cedarview Capital. Please go ahead.

I guess just following up on the last question, it seems like you touched upon the spectrum a little bit but at the East Coast IDEAS Investor Conference back in June, it seems like you guys spend a considerable amount of time talking about it. So if you just expand a little bit about I guess since then where you guys are in your path and seems like everything is pretty telegraphed to what the public is out there with respect to the final rule, so where you are sitting at this time without being definitive I guess?

I think the best way to answer that is we've got full-time staff working on this, we're running simulations, we're running scenarios and we are looking at the opportunities both from and auction participation standpoint as well as a potential hosting standpoint where you don't participate in the auction directly but you host with somebody else who potentially could participate in the auction. Going beyond that, as far as assigning a number potentially, I think at this stage in the game I don't think there's much point to that. I think what I would say is we continue to remain optimistic given the work that we've done to date about potential upside provided you've got the right scenario on the table. If it's 126 MHz clearing target, that's obviously good news for everybody in the industry. If it's an 84 MHz clearing target, it's not such a great news for the industry. And we have no control over that. All we have control over is just what our stations could potentially go forward both on hosting and on auction participation basis, and that's the work we continue to do. So there was another broadcaster earlier this week who quoted Greenhill figures and quite frankly Greenhill was months and months ago and light years ago as far as the work that we've done. So we're going to shy away from giving Greenhill numbers again and just continue to do the work.

That's well, does anything preclude you guys from like on the next call or the next two calls I guess before the auction and speaking about what your strategy is going to be or there's other kind of non-disclosures that you can't put out?

No, you will never hear about our strategy with respect to the auction because we are playing a game of poker with everybody else in the broadcast community. For us to kind of broadcast what our strategy is gives everyone the answers that they could strategize against us. So we are never going to make public what our strategy is specifically market by market.

Great. Thanks a lot, guys.

Next we will have a follow-up question from Michael Kupinski of Noble. Please go ahead.

I just have a couple of clarifying questions. In the pacing data for the radio, is there any political or advocacy advertising in the number? I was just wondering if you've already started to see some of that and if that's included in the pacing information you provided.

Michael, as of now we don't have any political or advocacy revenue in our pacing for Q3 for TV and radio, but it just heightens the fact of how well our radio continues to perform based on the pacing that we indicated. I will say though, I'll add to that just briefly, we do expect a robust political year. We think that the political season is going to start even earlier than 2011. In 2011 we had about $800,000 of revenue, TV and radio, in the second half of the year. As we approached the 2012 election, we were forecasting much stronger growth. This year we believe that the states that we operate, Colorado, Florida, Nevada, New Mexico, Virginia are going to become even more important in this election. The Latino electorate is, every day we read another article about the growing influence of Latino [border] [ph] electorate. So, a lot of interest in the Latino market. As it relates to the political elections, we're certainly in contact weekly with both major parties, Democrats and Republicans, about the national race as well as local races. And in California for example there's going to be an important senatorial race. It looks like right now the two candidates are two women, Loretta Sanchez, a Congressperson, and Kamala Harris, the state AG, and that's going to be probably decided by mid-year as to who the nominee is going to be for the Senate race and that's going to be an important election. We expect to see certainly a considerable amount of messaging to the Latino markets here in California to drive voters to the poll.

Thanks for the color there. And also, Walter, you indicated that auto advertising you are expecting to see come back stronger in the second half here. I was wondering what gives you the confidence that you are going to see that. And if you can remind me what the percentage of auto is as a percent of total revenues and what that was like maybe last year and see the comparisons from year-over-year?

Let me just say that our pacing for Q3 for automotive is quite strong, both TV and radio, and sales nationwide continue to be strong for the automotive sector. I believe the target this year now is about 17 million units, and then we've got another fact which is that the highest records of older cars on the road now, 11.5 years, than ever. So we continue to remain bullish. The Latino consumer is certainly important to this critical sector for our business, and like I said, we expect to see some healthy growth here in the second quarter. Total percentage of our total revenues for auto is about 23%.

And could you remind me what it was last year?

It was about 1.5 points lower. The breakout, it's 29% of total TV revenue right now and it's about 14% of total radio revenue, and that 29% is kind of at a point where historically I think our high point, high watermark was back in 2006, we hit 30%. So we're getting up there as far as the auto penetration is concerned, but radio seems to certainly be on the rise given the strength in the content. Radio at the high watermark was as high as 20%. So sitting at 14% there is room for growth there.

I see. Okay, thank you so much.

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

Thank you, Carrie. Thank you everyone for listening in to our second quarter earnings results. We look forward to talking to all of you in November when we report our third quarter earnings results. Thanks again. Bye.

Thank you. This concludes our conference. Thank you for attending today's presentation. You may now disconnect. Have a great day.