Greetings and welcome to the National CineMedia Inc. Third Quarter 2017 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Katie Scherping, Chief Financial Officer. Thank you, Ms. Scherping. You may begin.

Thanks, Bob. Good afternoon, everyone. I'd like to remind our listeners that this conference call contains forward-looking statements within the meaning of Sections 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended. All statements other than statements of historical facts communicated during this conference call may constitute forward-looking statements. These forward-looking statements involve risks and uncertainties. Important factors that can cause actual risks to differ materially from the company's expectations are disclosed in the risk factors contained in the company's filings with the SEC. All forward-looking statements are expressly qualified in their entirety by such factors. Further, our discussion today includes some non-GAAP measures. In accordance with Regulation G, we have reconciled these amounts back to the closest GAAP basis measurement. These reconciliations can be found at the end of today's earnings release, which may be found on the Investor page of our website at www.ncm.com. Now I'll turn the call over to Andy England, CEO of National CineMedia.

Thanks, Katie. Good afternoon, everyone. Welcome and thank you for joining us for our third quarter 2017 earnings call. During this call, I will spend a few minutes highlighting the company's third quarter 2017 results, and Katie will then provide a more detailed discussion of our financial performance for Q3 and discuss our guidance for 2017. And then, as always, we will open the line for questions. I'm very pleased with our third quarter result as we were able to achieve a stable quarter following a challenging first half for the year. As we indicated on our Q2 earnings call, NCM's third quarter did in fact end up pacing ahead of last year as the scatter market rebounded in our favor even as our network attendance was down 16.1%. This highlights that NCM's fortunes don't always have a direct correlation to those of exhibition and are more driven by the demand side of the equation. Total revenue for the third quarter increased 2.6% to $116.4 million from $113.5 million for the comparable quarter last year. Adjusted OIBDA increased 2.8% to $62.6 million for the third quarter of 2017 from $60.9 million for the third quarter of 2016. And national sales team enjoyed increased demand in a significantly improved scatter market in Q3 as NCM's cinema network provided a great place for appetizers to find the premium video GRPs they needed during the season when TV ratings are traditionally low. Our national ad revenue was up 2.7% to $84.5 million versus $82.3 million in Q3 of 2016 excluding beverage revenue from the family members, during the part to 36.1% increase in scatter revenue in the third quarter of 2017 compared to the third quarter of 2016, as well as a nearly 30% increase in digital and other revenue not included in…

Thanks, Andy. I'll walk through the results that Andy highlighted in further detail, discuss our thoughts on the quarter, and our outlook for the rest of the year, then we'll open the call to your questions. For the third quarter, our total revenue decreased 2.6% versus Q3 2016, driven by a 2.7% or $2.2 million decrease in national advertising revenue, and a 6.3% or $1.5 million increase in local and regional advertising revenue, partially offset by a 10.7% or $800,000 decrease in beverage revenue. Total Q3 adjusted OIBDA increased 2.8% or $1.7 million and adjusted OIBDA margin slightly increased to 53.8% from 53.7% versus Q3 2016. For the first nine months of 2017, total revenue decreased 6.5% or $19.7 million, adjusted OIBDA decreased $21.8 million or 15.1%, and adjusted OIBDA margin decreased to 42.9% from 47.3% versus the first nine months of 2016. The Q3 increase in adjusted OIBDA was driven by the increase in high margin national advertising revenue, specifically in the scatter market. The year-to-date decline in adjusted OIBDA is primarily driven by the decrease at high margin national advertising revenue as a result of fast scatter market in the first half of 2017, the timing of content partner and upfront allocations, and $2.4 million more in onetime adjustment compared to year-to-date 2016. In the third quarter, we recorded $6.5 million of integration payment and other income with theatres payments from Cinemark and AMC associated with Rave Theatres and Carmike Theatres versus $700,000 in Q3 2016. You should note that these payments are added to adjusted OIBDA for debt compliance and partnership cash distribution purposes, but are not included in reported revenue or adjusted OIBDA, as they are recorded as a reduction to the net intangible assets on the balance sheet. We expect to record approximately $18 million…

Thank you, Bob. The third quarter was a pleasing performance given the challenges of this year and we are focused on bringing in the remainder of the year. Pleased to have helped AMC with it's recent share sale and excited about the launch of Noovie and new Pre-Show. Thank you for joining us on the call and have a good evening.

This does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation.