Entravision Communications Corp (EVC) 2008 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by. And welcome to the Entravision Communications Corporation first quarter 2008 earnings conference call. During the presentation all participants will be in a listen-only mode. Afterwards we'll conduct a question-and-answer session. (OPERATOR INSTRUCTIONS). As a reminder, this conference is being recorded Thursday May 1st, 2008.

I would now like the turn the conference over to Walter Ulloa, Chairman and Chief Executive Officer. Please go ahead sir.

Thank you Kim. Good afternoon everyone, and welcome to Entravision's first quarter 2008 earnings conference call. Joining me today on the call is Phillip Wilkinson, our President and COO, John DeLorenzo, our Executive Vice President and CFO, and Chris Young, the President of our Outdoor Division, who will succeed John, as Executive Vice President and CFO, after May 9th.

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 those risks and uncertainties that could impact actual results. In addition, 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 nonGAAP financial measures. The Company has provided a reconciliation of 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 is filed with the SEC in a Form 8-K. In addition with the announced sale of the Company's Outdoor division, at March 31st, 2008, Outdoor was classified as a discontinued operation, and the results of operations are separately reported for all periods presented.

We began 2008 in a challenging environment for our Television and Radio businesses, due to a difficult advertising market, and strong comparisons from the year-ago period, when our Television and Radio revenue was up 8% and 14% respectively. Despite these challenges we remained uniquely positioned to capitalize on the expanding power of the U.S. Hispanic consumer market, and have proactively undertaken a number of revenue and cost initiatives, to ensure we are maximizing our cash flow performance.

We continue to prudently invest in our Television and Radio businesses to drive our audience shares. On March 24th, we closed on the acquisition of WNUE FM in Orlando, Florida. This is the 11th market place where Entravision owns both Television and Radio assets. Our sales teams are working hard in this market to further penetrate existing accounts, and are actively targeting new advertisers to directly participate in Spanish language advertising.

As previously announced during the quarter, we entered into agreement to divest our Outdoor assets, which is expected to close in the second quarter of 2008 for $100 million. We believe this sale unlocks value to our shareholders, and it's proceeds will improve our financial flexibility, as we continue to execute on our strategic plan.

Our Board of Directors recently approved a buy back program of $100 million of common stock, which is in addition to the $100 million that was previously authorized in November 2006. This new repurchase program underscores the financial strength of Entravision and our commitment to returning value to our shareholders. Our strong cash flow, and the proceeds from the sale of our Outdoor unit have enabled us to fund a significant capital program, which we believe is a prudent avenue to deploy our cash.

Turning to our financial results for the first quarter, our consolidated first quarter revenue fell 2% versus the same period in 2007 to $55.7 million, consolidated adjusted EBITDA decreased 13% to $15 million versus last year, while free cash flow per share decreased 50%. Earnings per share in the first quarter was negative $0.08 per share, excluding the decrease in fair value of our interest rate swap agreements, earnings per share was positive $0.01 per share.

Turning to our Television segment, revenue decreased 2%, which is in-line with the overall industry according to the TAV. Local revenue grew 2%, and national revenue fell 5%. In the year-ago period, overall revenue increased by 8%, with local television revenue increasing 6%, and national up 11%. Our Television division posted revenue of $36.1 million, versus $36.8 million in the 2007 period.

The revenue decline was primarily due to attrition in our Automotive, Fast food, Health Care and Financial Services advertising categories, as well as a soft advertising environment. In the Automotive category for our Television division, we saw about an 18% drop in revenue for the quarter. Most of that decline was a result of a decrease in Tier 1 advertising, due primarily to creative delays from Ford, and a nationwide agency review at GM. Although it is early in the second quarter, this important category is improving.

Our sales and marketing teams were hard at work trying to monetize rating gains and broaden our advertising client base. In the first quarter, 82 new clients advertised with our Television division, spending over $10,000 each. Our strongest categories for the quarter included Telecommunications, Grocery/Convenience stores and Political. In the first quarter, our largest advertisers were Ford, Toyota, AT&T, GM, Chrysler, Dodge, McDonald's, Nissan, and Verizon Wireless. New advertisers included Royal Caribbean Cruise, Tyson Foods, Sport Auto Group, Las Vegas Honda dealers, Casino Palma, and [Aramis] Foods.

Political advertisement on our television stages was particularly strong, driven by Indian gaming initiatives in California, and the Democratic primary in Texas. Total Television Political revenue for the quarter was about $1.5 million, which was double the amount we generated in the first quarter 2004.

Turning to our ratings performance, our Univision affiliates extended their ratings leadership positions, with the February 2008 sweeps. Our Univision affiliate group continues to dominate ratings in their respective markets, with nine of our Univision affiliates #1 or #2 in adults 18 to 34, sign-on to sign-off, regardless of language.

Our local news programming continues to perform extremely well. It enhances our value to the community, and creates an attractive opportunity for advertisers. In addition it has played a critical role in our ability to track political and issue-specific advertising, and should represent an attractive platform for election spending during the remainder of 2008.

Our local early news programming had triple-digit growth in four of our markets for adults 18 to 34 year-over-year. Additionally in 12 of our local news markets, our television stations were either #1 or #2, adults 18 to 34, regardless of language. Our local late news showed similar success as six of our affiliates, were either #1 or #2 adults 18 to 34, regardless of language. The group ratings for our late local news grew 17% for adults 18 to 34, and 8% for adults 18 to 49.

Taking a look at our National news, 11 of our television affiliates ranked #1 or #2 with adults 18 to 34, regardless of language. Our Telefutura group in many of our markets continues to post impressive rating gains in the majority of our markets, they are the second-most watched Spanish language television station, right behind our Univision affiliate.

Our Radio division had a soft quarter, as revenues decreased 3%, while the overall industry is projected to be down 5%. According to an average of the three months in the quarter by the Radio Advertising Bureau. It is important to point out that in the first quarter of 2007, the Radio division grew revenue by 14%, which created a difficult comparison for 2008, as well as a challenge of a softer advertising environment this year.

National revenue was up 12%, while local advertising, which represents 76% of our total rate of revenue was down 7%. In light of the revenue weaknesses that we are seeing across all our markets according to Miller Kaplan, we continue to outperform the market in key markets such as Denver, Albuquerque, Las Vegas, and Sacramento. Our Top Five categories for the quarter were Automotive, Services, Travel and Leisure, Retail, and Fast Foods. In the Top Five categories, we saw a 19% gain in the Service category, and an 11% gain in revenue in Fast Food.

In addition to these two categories we saw growth in the Grocery category. We experienced softness in the Automotive category as a whole, with the overall category decreasing by 22% in our Radio business. Auto is our top category, and represented 18% of total Radio revenue in the quarter, down 4 points over first quarter of 2007.

Tier 1 and Tier 3 spending were down 47% and 25% respectively, but on the positive side, we saw revenue increases in both Tier 2, where spending was up 10%, in Automotive related products which increased by 13%. Within Tier 1 we saw reductions by most automotive manufacturers, except for Honda, Ford, Hyundai, and Saturn.

With respect to Political revenue, our Radio division recognized $191,000 during the first quarter. For the quarter we welcomed 32 advertisers to Entravision Radio, who spent more than $10,000. First time advertisers included Big O Tires, Advanced Auto Parts, City Best Insurance, Compass Bank, and Nationwide Insurance.

We experienced double-digit growth in eight of our Top 10 advertisers. The largest increases came from Burger King, Cricket Wireless, and Farmers Insurance. Los Angeles remains a very competitive market, and we believe the programming changes we initiated in January, are starting to generate positive results. For KSSE 'Super Estrella,' which is also the flagship station of our Super Estrella Network, we experiencing a total week increase of 35% for fall of 2007, compared to winter 2008 in our key demo adults 18 to 34. The total week queue for KSSE increased 9%, and the station's time spent listening increased an hour to 6.5 hours per week. La Regadera con La Chokolata which debuted on January 7th grew 44% in the same time period and demo. This show is hosted by Oswaldo Diaz, who performs the role for the lead character, and is joined by Super Estrella's morning jock, Ysaac, for a truly unique morning show.

With this new lead-in, Super Estrella experienced a 52% increase in mid-days, and increase in afternoon drive of 32% an average quarter-hour persons in our key demo. As we stated in our last conference call, the morning show will continue to accelerate our ability to grow our listener base, not only KSSE, but for all of our Super Estrella stations. To conclude, the overall economic slow down in the softer Television and Radio advertising markets has had an effect on our results. However, our ongoing focus on the revenue and cost side of our business, will ensure we are maximizing the value of our assets, and operating as efficiently as possible.

We continue to believe that our unique focus on Spanish language media, with assets strategically positioned in the nation's fastest-growing and most intensely populated Hispanic markets, places us in an ideal position to capture future growth, and create value for our shareholders. According to new census data released yesterday, the U.S. Hispanic population continues to surge. As a result, we remain confident about our future prospects, despite the current economic slow down we are facing. Latinos now represent 15% of the total U.S. population, up from 12.6% in 2000, an increase in the Latino population in the U.S. of over 10 million people in less than eight years.

We are off to a strong start with our Political revenue goals for the year. The power of the Hispanic vote continues in this year's Presidential contest, as the Latino voter continues to receive a great deal of attention and recognition. In the Southwest, particularly in California, Texas, Colorado, New Mexico, and Nevada, we expect the Hispanic vote to significantly impact which Presidential candidate wins those important states, and as a result, determine the outcome of the Presidential election. As all of you know, we operate important media clusters in every one of these key southwestern states.

Now I am going to turn the call to John DeLorenzo our Executive Vice President and Chief Financial Officer. This is John's last investor call with Entravision. He is moving back east to be closer to family. John has been a great friend and colleague of the Company for over five years. John will be missed, but Chris Young, who I introduced earlier as our new Executive Vice President and CFO, is ready to go.

Thank you, Walter and good afternoon everyone. The company previously announced that it entered into a definitive agreement to sell it's Outdoor Advertising Division to Lamar Advertising Company for $100 million, the transaction, which is subject to customary closing requirements is expected to close this month. Upon closing of the transaction, the Company will no longer have Outdoor operations. In accordance with SFAS 144, accounting for the impairment or disposal of long lived assets, the Company reported the results of our Outdoor operations in discontinued operations, within the Statement of Operations. As the Outdoor unit has been included in discontinued operations, the following results do not include the Outdoor segment.

As Walter has discussed, net revenue for the quarter was $55.7 million, down 2%. Operating expenses increased 1% to $35.4 million, and consolidated adjusted EBITDA decreased 13% to $15 million. Free cash flow, which we defined as consolidated adjusted EBITDA minus capital expenditures, cash interest, cash taxes, plus interest income was $0.03 per share. Operating expenses increased to $35.4 million for the quarter, from $35 million, an increase of $400,000. The increase was primarily attributable to an increase in wages, syndication amortization, and rent expense, partially offset by a decrease in national representation fees, and other expenses associated with the decrease in net revenue.

Corporate expenses decreased to $4.5 million for the quarter from $4.6 million, a decrease of $100,000. The decrease is primarily attributable to a decrease in noncash stock-based compensation. Free cash flow for the first quarter of 2008 was $2.7 million, or $0.03 per share. EPS for the first quarter of 2008 was negative $0.08 per share, compared to an EPS of negative $0.03 per share in the first quarter of '07. The negative $0.08 per share was lower than our guidance of $0.00 per share, due primarily to the decrease in the value of our swap agreements, as interest rates have declined. Excluding the decrease in the value our swap agreements, the EPS for the first quarter was $0.01 per share.

Turning to our balance sheet, as of March 31st, 2008, our total debt was $474 million, and our trailing 12-month EBITDA as adjusted was $92 million. Our net debt to EBITDA adjusted was 4.8 times, cash on the books was $29.5 million at March 31st, 2008. The Company also announced that it repurchased 3.4 million shares of Class A Common stock for approximately $22.4 million in the first quarter of 2008.

Additionally the Company announced that it repurchased 1.3 million shares of Class A Common stock for approximately $8.4 million in the second quarter of 2008. Completing the $100 million repurchase program authorized on November 1st, 2006. The Company's Board of Directors approved the repurchase of an additional $100 million of the Company's Common stock on April 7th, 2008.

For the second quarter of 2008, the Company expects net revenues to decrease by low to mid single digit percentages, and operating expenses to be approximately flat to low-single digit percentages, as compared to second quarter 2007. Excluding noncash compensation, corporate expenses are expected to be approximately flat, as compared to the second quarter of 2007. The Company expects approximately $400,000 operating expenses and $500,000 in corporate expenses, relating to stock option compensation in the second quarter of 2008. Depreciation and amortization is expected to be between 5.5 and $6 million. We no longer are depreciating or amortizing our Outdoor assets, as they have been classified as held for sale.

Net interest expense for the free cash flow purposes is expected to be between 7.5 and $7.8 million. We expect CapEx to be between 4.5 and $5 million for the second quarter of '08. We have budgeted for a total of $16 million of CapEx in 2008. The $16 million CapEx figure includes CapEx for the remaining digital television conversions and HD upgrades at our Radio division.

Second quarter earnings per share is expected to be $0.05 per share, free cash flow to be $0.11 per share, and it is based on 92 million shares outstanding.

As Walter has mentioned, I will be leaving my position of Chief Financial Officer for the Company, after filing the Company's 10-Q for Q1, in order to move East to be closer to family. I wish my colleagues good look and I will miss them. I also wish to thank you the investors of our Company for a wonderful experience.

This concludes our formal remarks, Walter, Philip, and I will be happy to take your questions. Operator.

Thank you very much. (OPERATOR INSTRUCTIONS) Our first question comes from the line of Victor Miller of Bear Stearns. Please go ahead.

Good morning, thanks for taking the calls. Thank you John for your service. The Auto, in terms of Tier 1, Tier 2, Tier 3 as you go into second quarter, seems to be people at other TV companies are saying that they are seeing anywhere between absolutely no improvement in the Auto category, to maybe some modest improvement. Just wondered what you are seeing there? Secondly, can you talk about ratings in L.A., specifically in the radio stations there, and the impact that might be having on 1Q and 2Q, and lastly, any process updates on retransmission consent negotiations that you are going to work maybe with Univision? Thanks.

I will take the first two. The last two parts of the question, then Phil is going to comment on the Automotive business. As far as the retransmission agreement process goes, we have had several discussions with Univision, related to our retransmission strategy for this next cycle starting in 2009. Although we have not reached an agreement with Univision to join with them in this effort, we have made a lot of progress in this endeavor.

We continue to believe that working with Univision will result in an even more successful retransmission negotiation with both companies. We expect to have more to report on this issue later on in the second quarter, or by our next Investor conference call in August.

Just to comment on Los Angeles, that was the question you asked about. We are talking about the winter book, was that the question?

The ratings trends there, and what impact it might have had on the overall radio numbers?

Well there is no question that our Radio numbers were impacted in the first quarter, by prior ratings. That said, we believe we are certainly on the right track as we speak here, with the changes that we have made in Los Angeles, particularly as it relates to Super Estrella.

We are facing a tough radio environment in Los Angeles. We believe the markets have been impacted by a decrease in spot radio revenue. The competition is fierce and therefore, we are working ourselves, and all the people that we work with, as hard as possible to get back on-track with our ratings in Los Angeles. We have seen improvement as a result of this last book in every one of our demos, and we think that these improvements are significant.

As you know, it takes about six months to generate, anywhere from three to six months to generate revenue as a result of the increase in ratings, but we believe that we are on the right track, and on the road to getting Super Estrella particularly turned around. Phillip? Want to comment on the Automotive.

Thanks, Walter. Hi Victor. I think you had a question about Tier 1, 2, 3 and the impact, or if we see any improvement, and the answer is yes. On the TV side, we had a tough first quarter in the Auto industry. I think as Walter had mentioned, we had a difficult start, Ford had a creative delay, and GM had a national agency review for the Chevy Dealers Association. We really had a soft, soft January as a result, it set us back, but we have seen improvement through April. I can only give you April up through today's numbers, but we are still in the negative on the auto side, but we saw about a 12 or 13 point improvement. And we are single, low single, mid-digits negative on the Auto. So it has improved, but it's still very tough out there. We track the Polk data, which is the new car registrations, and see about a little over two-thirds of our markets where we do business, as of February, year-over-year, auto sales are down double-digits in a lot of our markets.

So absent New England, which is kind of in an unusual situation, and Boston, Hartford, and absent the kind of the oil booming cities of Texas where they are selling a lot of cars, but aside from those markets, we see that the sales are down, and the sales impact the ad budgets clearly, but we do see a bit of improvement. It is not as dismal as it was first quarter, and we hope that continues. Certainly April has improved significantly.

Just a reminder, your Auto business was up very significantly I believe last year in 1Q and 2Q, is that right, it really started to tail off 3rd and 4th?

Yes, exactly. We had tough comps first and second quarter in Auto.

You were plus what, 20 in TV in both quarters?

That number I would have to look up and get back to you. I don't think it was that strong, but it was a very positive story in the first half of the year, and then we saw, of course, the sub prime thing slow quite a bit down in all categories in consumer spending and by August, September.

Thank you.

But the first, Tier 1, Tier 2, and Tier 3 here in April have all shown improvements across the board.

Okay, operator?

Thank you very much. Our next question comes from the line of Tony Wible of Citigroup, please go ahead.

Good evening gentlemen. I was hoping we could dig into the radio EBITDA being down. Was that just a function of the weakness on the revenue side, or was there anything else in that that would have caused margin pressure?

That is a function of the weakness on the revenue side. John, you want to comment?

Yes, it was basically all of the weakness there. We had a little bit of, pretty much our expenses were below what they typically would have been. We have been managing them into the bad quarters. So no, it is completely about revenue.

Got you. Is there any way to explain some of the difference, I guess between the TV and the Radio side with the national. I think I heard you correctly that TV national is down 5, but radio national was up 12. Is that just a function of comps being a little bit different on the Radio side?

I don't think it is a difference of comps. Both divisions had strong first quarters in 2007. In our Television business, national is a much bigger factor, about 50% of total revenue. In our Radio business, local is a much bigger factor. National is only about 25% of our total revenue.

So even though they are both media that target the Hispanic market, they are different in terms of how national business comes in.

We are also seeing a number of new accounts on the national radio side, as a result of shoring up our sales effort in the different offices around the country, and taking advantage of some national dollars out there that we perhaps didn't, well I know that we didn't get in the past.

Got you. And Walter, what are your thoughts on PPM as we head into the L.A. market in September '08, are you anticipating the rate benchmarking in that market to account for the demo?

Well, we are concerned about the challenges that have come to surface with PPM. We still believe that this electronic measurement is a far better method of measuring audience than the diary, but we are particularly concerned about the Hispanic panel size, the sample performance, fluctuations, language waiting, and metrics that Arbitron is using, to determine what is acceptable panel performance.

Our challenge is that while Houston most closely mirrors our markets, the methodology being used is different than that used in New York, Philadelphia, and any of the to-be-released markets. We are certainly monitoring the process. As I indicated to you, we are concerned, Jeff Lieberman, our President is involved, or is going to participate in a couple of Committees here, to better monitor how PPM is implemented in Los Angeles.

Okay. Last question is, any color you can shed on the the Televisa/Univision dispute? In particular what I am trying to figure out, I know you can't fight [Thomas Bigley], but is there a contingency plan, or how can we think about best case/worst case scenario?

Well, as you know we are not a part of that litigation. We are optimistic that the parties can resolve the matter in a favorable way, and we still believe that will happen. We don't know anything about the details, but certainly the fact that the trial has been postponed, I think is a good sign. So we remain optimistic that will be resolved, and that there will not be any issues related to programming going forward.

Great, thank you.

Thank you very much. Our next question comes from the line of Marci Ryvicker, please go ahead.

Thank you, John, you will be missed. Thank you for your services also. I have two questions. The first is your guidance for the second quarter is basically the same as it was for the first quarter, with revenue expected to decline by low to mid-single digits. Now given that you were down 2% in the first quarter, I take that to be low-single digits, is there anything you are seeing right now that would suggest you would come in at the low end of the range for the second quarter? Are you building any cushion for a weaker economy, or is there something else? I know there was the L.A. concert of last year in Q2 of last year and Q3 of this year, so there is a tough comp, but is there anything else?

That is where I was going to go with the, it is basically about the comp at [concert] in the second quarter of last year was typically in the third quarter. Other than that is just about where we see the market in terms of pacing and where we think we will be. Hopefully that will change by the quarter is over, and we will be a little surprised.

Is there any change in your free cash flow priorities between share repurchases, M&A, debt pay down? Anything else?

We mentioned we did finish our $100 million stock buy back that was initiated in November '06, and put a new one in place in April of this year. We have been buying in the second quarter, and we hope to aggressively, still find opportunities to buy back our shares at reasonable prices. We are always looking to enhance our existing cluster, add more radio where we have television/radio/. We are still looking and hopefully we'll be able to see some opportunities as the M&A market is a little soft out there.

Thank you.

Thank you. Our next question comes from the line of Lee Westerfield of BMO Capital, please go ahead.

Thanks, gentlemen. Good evening. Almost housekeeping now and follow-on, a bit about the [Regetime]. So what was the impact last year in the second quarter specifically from the L.A. concert that shifted in Q3?

$1.2 million of revenue that moved, is moving this year to Q3.

And any significant margin difference that we should take into account for that same shift in revenue?

Well, we are looking at probably the margin on that was probably about 40% on the [concert] dollars.

Yes. Perfect. Okay. You touched on everything else. So thank you gentlemen, thank you very much.

Thanks.

Thank you very much. Our next question comes from the line of Mark Wienkes of Goldman Sachs.

Great, thank you. Wondering, if you could tell us your approximate book to budget right now, and how it is comping versus the past couple quarters? Has it changed at all? Digging into that local versus national issue a little bit more. Outside of auto can you speak to trends you're seeing in local versus national from the different categories?

The first question Mark, was how is our pacing?

Like how much business is on the books today versus over the past few quarters?

About the same as it was last year.

Not booking earlier or later?

Our forecast or our guidance, our low and our high. We are about 79% of our guidance. That is where we were last year. And the second part of the question?

Local versus national. You talked about last year, local TV, radio, local part of Outdoor was really strong. National was weak. This year seems to be reversed. I guess the drivers that are causing that disparity across the businesses? If you could comment on Outdoor, I know it is now in discontinued ops, but are the trends there the same, can we expect a weak local or stronger national?

Well, this is Philip, Mark, as far as the TV local, we finished a little better than our national we were plus 2 in our national, and minus 5, as I mentioned to you, we had a tough start particularly on the Auto side, specifically two major U.S. Auto makers that kind of dragged us down there in January for national, but all-in-all, that minus 2, was a plus 2 local and a minus 5 national for the quarter on TV at first.

Pace-wise we are showing continued growth and strength in local. And local is really where we have the relationships with local retailers and clients, and we can impact the business a little better. Less of a process there with the agencies. It is more of a relationship sell with the clients, but our April pace is high single digits on the local side, but we did see national come back from the TV side of mid-digits. So it is a marked improvement over first, that is a trend. That is for April.

On the radio side, it is much of the same we saw in first. We have got a stronger national story than we do local, but I think as Walter had mentioned to you, it is a smaller part of our overall mix of the business, so it is a little bit easier to impact the smaller number. And the positive growth.

And regards to Outdoor, we had actually a terrific quarter in both local and national in Outdoor. And that is Outdoor.

Okay. That is great, thank you.

Thank you very much. Our next question comes from the line of David Miller of SMA Capital.

Hey guys, good afternoon. Walter, I just wanted to make sure I'm clear on what you guys intend to do with the windfall from the Lamar sale? I was under the impression three months ago when you guys issued your fourth quarter numbers, that at least directionally the way you were thinking about it, was that you were going to use a very large percentage of net proceeds for debt reduction, you seem to have backed off from that in your prepared remarks. Wondering if you can comment? Want to make sure I heard you correctly. Thank you.

I think the debt reduction comment was more by the analyst side than the Company's side. The Company has always put all of the options on the table, debt reduction being a possibility, but that is a possibility if we continue going down the road, and we don't find other opportunities to invest those dollars. I mean, we are not going to have those dollars on the books forever, indefinitely. Our goal is obviously to grow our clusters, and to buy back shares at opportunistic prices. As long as we believe the price is opportunistic, we're going to continue to buy back shares and we're constantly looking at acquisitions. If we don't find any, and we don't have an opportunity to buy stock, certainly we will visit the debt, but I don't think the Company has changed position at all in terms of what the plans are.

If you do in fact go out and acquire assets, is the #1 priority within that to acquire assets where you already operate a television duopoly?

Right. Our goal is to grow our radio clusters where we have television.

But also as important as a goal that is to expand our Univision footprint, which is our core business, and has been since we started the Company, is right there at the top of the list. We continue to look at opportunities in our television business to grow our Univision and Telefutura footprint. We launched another Telefutura television station this year in Colorado Springs/Pueblo, that will be our 19th Telefutura affiliate, alongside our 23 Univision affiliates, and we are also looking at opportunities to expand our Univision footprint.

Thank you

Thank you. I have no further questions at this time.

Okay, thank you Kim. Ladies and gentlemen, this concludes our first quarter Investor conference call. We look forward to speaking with all of you in early August, when we will give you our second quarter results. Thank you.

Ladies and gentlemen, that does conclude today's conference call. We thank you for your participation, and we ask that you please disconnect your lines.