Welcome to the Entravision Third Quarter 2016 Conference Call. [Operator Instructions]. Please note that this event is being recorded. I would now like to turn the conference over to Mr. Walter Ulloa, CEO. Please go ahead, sir.

Thank you, Dan. Good afternoon everyone and welcome to Entravision's third quarter 2016 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 subjected 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 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 third quarter, we further expanded our total audience shares by continuing to execute our multi-platform strategy. Our results were impacted by a number of factors including tough comparisons at our audio business, as well as $5.5 million in non-advertising revenues in last year's comparable period. Despite these comparisons, our core radio and TV stations remain well positioned and we're growing our collective digital audience, given the strength of our offerings and our mobile centric focus. Looking now at our financial results, revenues decreased 6% to $65.3 million. The decline was due primarily to the non-advertising revenue that we generated in our television business during the third quarter of last year. Excluding the impact of those non-advertising revenues, our total revenues were down 1% compared to the third quarter of last year. Consolidated adjusted EBITDA was $17.8 million in…

Thank you, Walter and good afternoon everyone. As Walter has discussed, net revenue for the quarter was down 6% at $65.3 million compared to $69.3 million in the same quarter last year. Operating expenses increased 4% to $40.2 million and consolidated adjusted EBITDA was $17.8 million. During the third quarter of 2016, the Company paid a cash dividend of $0.03125 per share to shareholders of the Company's Class A, Class B and Class U common stock. The total amount of the cash disbursed with the dividend was $2.8 million. The Company also announced today that the Board of Directors has declared a quarterly cash dividend of $0.03125 per share to shareholders of the Company's common stock, payable on December 30, 2016. The total amount of cash to be dispersed for this quarterly dividend will be approximately $2.8 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 7% to $40.4 million compared to $43.4 million in the same quarter of last year. The decrease in our TV segment was primarily attributable to approximately $5.5 million of revenue associated with television station channel modifications made by the Company in order to accommodate operations of a telecommunications operator, included in the 2015 period which revenue did not recur in 2016; and a decrease in local advertising revenue. This decrease was partially offset by an increase in national advertising revenue; an increase in political advertising revenue which was not material in 2015; and an increase in retransmission consent revenue. Retransmission consent revenues for the quarter was $7.4 million compared to $7.1 million in the same quarter of last year. Excluding the third quarter 2015 revenue associated with the channel modification and political revenue, TV net revenue increased 2%…

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

I just have a quick couple here. Regarding the retransmission revenue, I know that that number is growing nicely for you guys, but a number of broadcasters are now indicating that they have $2 per subscriber is in sight and then in the next few years they even have $3 per subscriber in sight. And I was just wondering, in terms of your negotiations with Univision, where does the Company stand on the prospect of maybe getting more retransmission revenue from the negotiations with the Univision.

Well, I guess the one thing that we'll comment to that question is that we continue to negotiate with Univision our proxy agreement with respect to retransmission revenue. So obviously the tension points are everyone wants more money out of this process, so we're working hard to achieve that. But we really can't comment at this time on what the outlook is for retrans.

Okay. And right now what does auto account for total television advertising?

Auto for the quarter was 32% of our total television advertising revenue.

And in light of how important the category is, how is it pacing in the fourth quarter?

The pace for auto is actually doing -- it continues to do well. It's pacing in the mid-single digits to the positive in fourth quarter. Auto is one category that we realize and we see it slowing down for the English language folks and albeit for us as well, it's starting to slow down a little bit at this stage in the year compared to the beginning of the year. But what you have to keep in mind, our place in the automotive segment, our number one product that we advertised for is by far the pickup truck. And if you look at sales as far as autos are concerned, truck sales were up 9% whereas cars are down 9%. And if you factor in the point that who's buying new autos, Latinos are purchasing -- the number of Latinos purchasing new cars is up 4% whereas non-Latinos purchasing new cars is actually down 2% to 3%. So from our perspective, it makes sense that this category will continue to be one of strength going into next year, even though you're seeing probably the opposite happened with our English language competitors.

And just to add to what Chris said, Michael, most of our Entravision media assets are located in high-growth and emerging markets and these are crucial to the automotive companies seeking to tap into new audiences to increase their share of auto spend. So that's certainly -- that point plus an improving economy, low gas prices, low interest rates, a number of new model launches, we think will continue to drive growth for us in the fourth quarter and into 2017 in the auto category.

And I realize that the television expenses were up a little bit. There is some variable expenses and they're related to compensation and so forth. You guys spending a little bit in terms of adding news and so forth to take advantage of political season, is that why the trend line looks a little bit higher in television?

Yes, that's right Michael. I mean, we've mentioned on the last quarter call that we had been gearing up for big political year and part of that was gearing up with our new staff and the year didn't turn out, at least, so far the way we had originally planned it and that's one of the reasons why the expenses on TV were probably 1 point or 1.5 point higher than what you would normally see.

Yes and the final question. You have a sizable cash position. Can you talk about your plans for you use of cash at this point?

Well, we're sitting on, call it, a ton of cash flow and cash on the books and you know what, at the end of the year, the Board will sit down and make a decision with respect to potential debt repayment. And then, there continues to be here internally, some M&A work that we're working on, but we're not ready to discuss at this time.

[Operator Instructions]. And ladies and gentlemen, this concludes our question-and-answer session. I would like to turn the conference back over to management for any closing remarks.

Thank you Dan and thank you everyone for participating on our call. We look to speaking to our investors in the first quarter of 2017, when we will release our fourth quarter of 2016 results as well as full year. Thank you.

And ladies and gentlemen, the conference is now concluded. Thank you for attending today's presentation. You may now disconnect.