Entravision Communications Corp (EVC) 2011 Q3 法說會逐字稿

Hello, this is the Chorus Call operator. Welcome to the Entravision Communications Corporation Third Quarter 2011 Earnings Conference Call. As a reminder, all participants will be in a listen-only mode and there will be an opportunity to ask questions at the end of today's presentation. (OPERATOR INSTRUCTIONS) For your information, today's conference call is being recorded.

At this time, I would like to turn the conference call over to your moderator, Mr. Walter Ulloa, Chairman and Chief Executive Officer. Sir, you may begin.

Thank you, Jamie. Good afternoon, everyone, and welcome to Entravision's Third Quarter 2011 Earnings Conference Call. Joining me today is Chris Young, our Executive Vice President and Chief Financial Officer, and Philip Wilkinson, our President and Chief Operating Officer.

Before we begin, I must inform you that this conference call will contain certain 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 or 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 in a Form 8-K.

During the third quarter, we continued executing our strategic plan and generating strong results despite economic pressures and difficult comparisons due to $2.5 million in total nonreturning World Cup and political advertising revenue booked last year.

Our television and radio properties have maintained their leadership positions across our markets and are strengthening their value proposition as we further advance our digital and mobile initiatives. Taken together, our traditional and digital assets offer unique multi-platform advertising opportunities that are driving strong gains in audience engagement and resonating with current and potential advertising partners.

Our ad sales teams continue to benefit from our multi-platform capabilities as well as from the 2010 census data, which points to strong growth in the US Hispanic populations. We have seen improvements in key advertising categories, including automotive, and are well positioned to capitalize on our leadership across key Latino markets as the advertising market improves.

Turning to our financial results for the quarter, our consolidated revenue was $50.1 million, down 6% versus the same period in 2010. Excluding incremental World Cup and political revenue from last year's third quarter, core advertising revenue was down 1.5% in the quarter.

Operating expenses were flat at $31.2 million. Consolidated adjusted EBITDA decreased 18% to $15.1 million versus last year, and free cash flow decreased 47% to $4.3 million.

In our Television division, total revenue was down 2% in the quarter. Excluding retransmission fees, our Television revenue fell 4% for the third quarter. Local revenue grew 8% and national revenue was down 16%. Including retransmission fees, political, and incremental World Cup advertising, core TV revenue was flat for the quarter.

National Television revenues in third quarter 2011 were significantly impacted by two main factors -- incremental World Cup billing and political advertising. Without these factors, Entravision national TV would have finished minus 10 in the quarter compared to prior year.

The automotive segment for our Television division continued its momentum with another solid performance in third quarter 2011, growing an impressive 29.3%. In fact, the $5.7 million of auto business generated in the quarter is the TV division's best performance since third quarter 2008, and marks the sixth consecutive double-digit growth quarter for the auto category for Entravision's TV division. Ford, Dodge, Chrysler Jeep, and Toyota were the largest auto advertisers in the quarter. It is also noteworthy that we experienced growth in all three auto segment tiers -- Tier 1, corporate, up 14.4%; Tier 2, dealer associations, up 33.3%; and Tier 3, local dealers, up 31.7%.

In addition to the automotive category, the Television division experienced growth from health care, up 18%; retail, up 18%; and product brand names, plus 6%.

National telecommunications led the decline in advertising categories, in large part due to its participation in the 2010 World Cup, where telecommunications was our top television advertising category, representing 24% of total World Cup revenue.

We were additionally impacted by Verizon's decision to narrow their marketing focus to only the top 15 Latino markets. In addition, we experienced declines from the grocer-convenience store category, finance services, and travel and leisure.

We successfully added 40 new advertisers who invested $10,000 or more in the third quarter. New clients for our Television division included Regis University, McCormick Brands, Orange County Department of Health, Chukchansi Casino, and the Texas Diabetes Council.

Turning to our ratings performance, our Univision affiliates extended their ratings leadership position in the July 2011 sweeps. Among all adults 18 to 34, regardless of language, against all broadcast competitors, Spanish and general market, 11 of our Univision affiliates ranked 1 or 2 sign-on to sign-off. Additionally, nine of our Univision television stations are either No. 1 or 2 among all adults 18 to 49.

Seven of our TeleFutura television stations are the No. 2 ranked Spanish-language television stations in their market in adults 18 to 34 and nine are No. 2 in adults 18 to 49.

During our prime time Novela block, Entravision Univision television stations are either No. 1 or 2 in 11 markets; 10 of our Univision affiliates are No. 1 or 2 in early local news; and in early network news, 12 of our Univision television stations are ranked either 1 or 2 in their markets. In late local news, nine of our Univision television stations are ranked either No. 1 or 2, regardless of language.

In Entravision markets combined, our Univision and TeleFutura affiliates aired 45 of the top 50 Spanish-language television programs among adults 18 to 34. Among adults 18 to 49 and adults 25 to 54, our affiliates aired 46 of the top 50 Spanish-language programs. The No. 1 Spanish-language program in Entravision markets was the annual Univision awards show, Premios Juventud.

In July, Entravision aired the 43rd Copa America Soccer Tournament held in Argentina and including teams through South America. In Entravision markets combined, the tournament averaged the second-highest audience among all sports events, regardless of language.

At to our Radio division, revenues were down 13% in the third quarter. Local revenue decreased 12% and national was down 15% over third quarter last year. During the third quarter of 2010, we booked approximately $300,000 in incremental World Cup and $500,000 in political revenue. This is over $800,000 of nonreturning revenue for our Radio division in the third quarter.

In addition, we did not conduct our Los Angeles markets Reventon Super Estrella concert during the third quarter as we had in 2010. The concert last year generated $1.1 million in nonreturning revenue.

Excluding all of these items mentioned in third quarter 2010, and excluding Copas America dollars from third quarter 2011, revenues decreased 4% over last year.

We recorded revenue growth in the third quarter in four of our top five categories. During the quarter, the automotive category was our top category, finishing up 28%. When we break up the auto category, we see an increase of 130% in Tier 1 advertising, Tier 2 advertising increasing 22%, and Tier 3 advertising grew 3%.

The Tier 1 growth is coming mainly from Ford Motor Company, up 140%; and Chrysler, increasing 142% compared to the third quarter 2010. Tier 2 growth came from 128% increase from Nissan regional.

Our top categories for third quarter in order of spending for our Radio division were services, which saw a 2% increase based on increase of 524% by [Federal Way] Insurance; travel and leisure, which saw a 7% decrease. Retail grew 2%, with JC Penney increasing their spending by 72%. And fast food restaurants saw an 8% increase in spending based on a continued spend by McDonalds and an increase of 19% by Taco Bell.

This growth was offset by a decrease in telecommunications, which decreased 45% in the third quarter, based on reduced spending at AT&T and Verizon, similar to our Television division.

In the quarter, we added 26 new radio advertisers who spent more than $10,000, which in total represented $516,000 in revenue for the quarter. New advertisers included Rosetta Stone, Regis University, Sutherland Nissan of Orlando, and La Pizza Loca.

On May 9, LER launched its new radio network, LER Network. LER Network has quickly become the No. 2 network in terms of ratings behind Univision Radio Network, currently reaching 76% of all US Latino listeners. LER Network currently has booked $4.1 million in net revenue in 2011 from blue-chip advertisers like General Motors, Home Depot, Lowe's, Auto Zone, Macy's, JC Penney, and Universal Pictures.

LER also entered into a strategic partnership with Sony Music Latin, in which LER has exclusive rights to Sony Music's Latin portfolio of artists to use in advertising and marketing campaigns.

We entered into a syndicated radio programming agreement with one of the hottest Mexican regional recording artists, Jenny Rivera, on September 2. This partnership allows Entravision to not only broadcast a program on our Mexican regional formats, but it also allows LER to sell in content advertising through a separate network. We are working on finding broadcasters that would like to air this program beyond Entravision stations and by year end, we plan for this program to cover over 70% of the total US Hispanic market.

Los Angeles is always a key focus for our Radio division, and our Super Estrella format, one of our cornerstone radio stations, is up 5% in average audience and 12% in reach among adults 18 to 34.

In the quarter of 2011, our Los Angeles radio cluster generated an 8% increase in total revenue for the quarter. We exclude the nonreturning revenue from Reventon in 2010 and incremental World Cup dollars, beating the Los Angeles market revenue by 5 points, which saw a 3% increase over the prior year.

We also beat our Spanish-language counterparts in LA by 3 points, with that portion of the marketplace increasing 5% in total revenue. Entravision Los Angeles radio continues to perform much better than our peers. Local revenue for our three Spanish-language radio stations has continue to lead our growth with improved new incentives and initiatives in place, such as our realigned sales team and a continued focus on new direct business.

National sales slowed in the third quarter for the Spanish-language radio stations in Los Angeles with a slow July. And though momentum picked up in August and September, the third quarter was not as robust as the first half of the year. Nationally, we have implemented strategies with LER to further target differences in our cluster formats and we are very aggressively targeting advertisers who still spend too much on our competition by provided integrated marketing solutions and leading with idea-driven strategies.

The Entravision Los Angeles radio cluster led the EBC radio division in digital sales again and expects to continue the trend. This digital revenue number does not take into consideration the incremental share of radio dollars absorbed by our Los Angeles radio team by putting together creative advertising and marketing solutions for local and national advertisers. Entravision also hired two dedicated digital sellers in the third quarter, which has already proven to assist us in the area of growth and opportunity.

We generated ratings growth in a number of markets and time periods. Entravision Radio reached 40% of all Hispanic persons and 42% of all Hispanic adults 18 to 34 in the third quarter Arbitron results in our markets. In the summer 2011 Arbitron survey, our stations are among the leaders in their markets in adults 18 to 34, regardless of language.

Among our Tricolor format stations, KLOK FM in Monterey-Salinas is No. 2; Denver's KXBK is No. 3; KLMZ is ranked No. 6 in Phoenix; and KRCX in Sacramento is No. 7, regardless of language.

Among our Jose formatted stations, we've experienced large increases from book to book among adults 18 to 34 with our FMs in Albuquerque, Orlando, Denver, El Paso, and Riverside-San Bernardino.

Our cornerstone afternoon drive program, Erazno y La Chokolata, continues to be a huge access among adults 18 to 34 against all competitors regardless of language, with our FMs in Monterey-Salinas, Sacramento, Denver, and Phoenix.

Our new morning show, El Show del Genio, is off to an incredible start with huge share increases in Riverside-San Bernardino, Albuquerque, Denver, and Sacramento.

Turning to our interactive digital unit, we have strategically positioned our digital efforts as an integral part of our sales platform. We now provide our advertising clients a multi-channel approach that incorporates new media to engage with our audience with traditional media, social media, on line, and mobile. This makes our model far more compelling, unique, and richer in terms of the new 360-degree marketing programs which we can now implement for our advertisers.

Interactive creates new opportunities for growth. Equally important, it also supports our broadcasting core. It broadens and deepens our relationship with current clients. It helps to minimize churn and provides opportunities to attract new clients that historically have not utilized our television or radio assets.

Although still a little less than 2% of our total revenue, we continue to make significant progress with our interactive and digital initiatives. Our interactive revenue has grown significantly for the last 13 straight quarters. For the third quarter, Interactive revenue grew 29% over the 2010 comparable quarter.

We also managed to reduced Interactive expenses 8%, while our Interactive operating cash flow increased 241% over the same period in 2010.

As a result of the launch of our new TV sites, we increased 750% the amount of video content we published on the Internet over the same period last year. We are now publishing every month over 3,000 local news video stories to our television websites, mobile platform, and tablets. We are second to none for online video coverage of local news in our markets, regardless of language.

The growth in content availability helped to increase our online audience. As a digital network of 101 local digital properties, consolidated visits to our sites continue to increase every quarter. For the third quarter, our visitors increased 25% over the 2010 comparable period, and we delivered 2.5 million videos. This creates new revenue opportunities with the increased inventory for online video end units.

Busca, our local Latino digital marketplace, keeps growing. Since inception of this new online product, we have 652 new advertisers and we sold just over $1 million in pure incremental Busca revenue. During the third quarter, visitors searching in our Busca sites increased by 25% over the last quarter.

Our online and mobile radio streaming operations continued to grow as well. During the third quarter, we streamed 3.6 million hours, a 25% increase over the same period last year. We had 9 million active listening sessions and we delivered 31 million audio impressions, also a substantial double-digit growth over same period last year.

We also ramped up our social media efforts on Facebook and Twitter with profiles for all our local station websites. We now have more than 260,000 followers on our social media channels, which represents a growth of 30% over the previous quarter. Social media is a complete new platform that allows us to interact and expand our audience as well as provide new advertising opportunities to offer our clients.

We revamped our mobile platform to include MMS, multimedia messaging services, which complement our texting capability. We are running mobile campaigns and managing Hispanic mobile communities for our advertisers, including Chevron, Jiffy Lube, Pizza Hut, Live Nation, Coors Light, Budweiser, State Farm Insurance, and others who now trust us to handle their mobile campaigns.

Our mobile revenue grew 106% in Q3 over last year's comparable quarter. Our mobile opt-in database grew 20% in this year's third quarter over the second quarter, and 200% over the same period last year.

These initiatives reflect our ongoing commitment to being a multiplatform provider and we are pleased with the progress, development, and positive feedback we receive from our partners, advertisers, and audience on each of these products so far.

We have built this interactive business from the ground up and we will continue leveraging the mass reach of our core broadcast television and radio assets to drive traffic to our online and mobile interactive properties creating engagement, new opportunities for advertisers, and growth for the Company.

Finally we are creating Spanish-language content that can be seen worldwide. We are now exploring opportunities for growth beyond our traditional broadcast markets in the US and evaluating the opportunities to enter the fast-expanding pan-regional Latin American online market.

We continue to remain confident and positive about our prospects for the fourth quarter and 2012, despite a sluggish economy. Our core advertising categories, excluding political, continue to improve, pacing plus-8% for our Television group and plus 4% for our Radio division in October.

And speaking of political, when we compared fourth quarter actuals in 2007 with our fourth quarter 2011 political revenue currently booked, we are 145% over that 2007 actual comparable period with eight weeks left in the quarter. The Latino vote will have a profound effect on the election of our next president. And with our impressive portfolio of media assets in the key swing states of Florida, Colorado, Nevada, and New Mexico, we expect Entravision's political revenue to greatly enhance its overall success in 2012.

In conclusion, we remain in a strong position to capitalize on the ongoing growth in the United States Latino market and continue to enhance our multi-platform advertising capabilities. Our core television and radio stations remain at the forefront of the markets they serve and are in a strong position to benefit as the economy improves.

While we remain committed to controlling our costs, we are strategically investing in our digital and new media assets, with the goal of driving increased audience engagement across our properties and strengthening our future growth profile.

At this time, I will now turn the call over to Chris Young to review our financials.

Thank you, Walter and good afternoon everybody. As Walter has discussed, net revenue for the quarter was $50.1 million, down 6%.

Operating expenses were flat at $31.2 million and consolidated adjusted EBITDA decreased 18% to $15.1 million.

Net revenue for the quarter was down 6% to $50.1 million, compared to $53.3 million in the same quarter of last year.

Television revenue was down 2% to $33.6 million for the quarter. compared to $34.3 million in the same quarter of last year.

Radio net revenue was down 13% to $16.6 million for the quarter, compared to $19 million in the same quarter of last year.

The decrease in net revenue at both divisions was primarily attributable to the absence of advertising revenue from the World Cup in 2011 compared to 2010 and the decrease in political advertising revenue, partially offset by an increase in retransmission revenue. Additionally, our Radio division did not benefit from revenue from a large Los Angeles promotional event, Reventone, during the third quarter of 2010, which did not take place in 2011.

Excluding political, incremental World Cup, and retransmission revenue, core TV advertising revenue was flat for the quarter. Excluding political, incremental World Cup, and revenue from a large Los Angeles promotional event during the quarter, core radio advertising revenue was down 4% for the quarter.

Retransmission consent revenue for the quarter was $4.2 million compared to $3.7 million in the same quarter of last year.

Operating expenses for the quarter were flat at $31.2 million. Excluding non-cash compensation expense, operating expenses for the quarter were also flat at $31 million.

Operating expenses for the TV division were up 1%. OpEx for the radio division were down 1%. for the quarter.

Corporate expenses for the quarter were up 2% to $3.9 million, compared to $3.8 million in the same quarter of last year. Excluding non-cash comp expense, corporate expenses for the quarter increased to $3.6 million from $3.5 million, an increase of $0.1 million, or 4%. The increase is primarily attributable to an increase in professional fees.

Free cash flow, which we define as consolidated adjusted EBITDA less CapEx, cash interest, cash taxes, plus interest income, was $4.3 million, or $0.05 per share.

Cash interest expense for the quarter was $8.9 million.

Cash capital expenditures for the quarter were $1.8 million. CapEx for the year will be approximately $8.2 million.

Turning to our balance sheet, as of September 30, 2011, our total debt was $400 million and our trailing 12-month EBITDA as adjusted was $57.8 million. Our total debt to EBITDA as adjusted was 6.9 times versus a maximum leverage covenant in our undrawn revolving credit facility of 7 times at September 30, 2011.

Cash on the books was $69 million at September 30, 2011. Net of cash on the books, total net leverage was 5.7 times.

This concludes our formal remarks. Walter, Philip, and I would be happy to take your questions at this point. Jamie, I'll turn it over to you.

(OPERATOR INSTRUCTIONS) Bishop Cheen, Wells Fargo.

Hey, everyone, thank you for the detailed update. I guess the last thing I have to focus on that you said, which is you're at a 6.9 ratio versus a 7 covenant. How much wiggle room, carve-out room, is there?

Well, it is what it is. We're at 6.9 -- the covenant is 7 times. If we do need to address that issue in the fourth quarter -- it remains to be seen -- we've got a couple of options, right? We can either go back to the bank group and try to get an amendment. We can -- remember, the bank line's not drawn; it's an undrawn facility. We can -- ultimately, if we wanted to, we could cancel the facility or we could just do a new deal, refinance the facility altogether.

Also, remember, we've got plenty of cash so you've also got that optionality as well to play with.

Right. I think the key is what you said -- it's undrawn. You've got lots of up tools in your kit.

Okay, so going to -- harvesting the census. Census numbers started to leak out in Q1. I'm not even sure if they've released the full tome, but there's got to be lots and lots and lots of good stuff in there about the Hispanic population spending, etc. How do you go about harvesting that?

You're talking about the increase in the Hispanic population?

Yes, and you're in all the right markets.

Yes, in fact we saw -- even though the overall Hispanic population grew 55% in the US, in our markets it was up 67%. And the density of Hispanics in our markets is 30%, compared to the overall population of 16%. So to that point, we're continuing to visit our advertisers and new advertisers and remind them about the growth of the Latino market.

The two rating agencies that we use to track and measure our television viewing and radio listening for the most part are updating their census information on a yearly basis so they're pretty much on track with the results that we found here in 2010.

But it's a great story. The Latino population continues to grow, it continues to become more important. If you look out to the end of this decade, you're going to see another 50% growth in the Hispanic population. So we remain bullish about our opportunities and we continue to remind our advertisers, current and new, about the growing Hispanic market and the prospects for them increasing their case lot sales by advertising to the market through our media assets.

If I can just add to that, Walter -- this is Philip. The two ratings services, Nielsen and Arbitron, obviously input the new universe estimates from the census this past September. So the September 1 universe estimates come out, and the first book that'll actually be affected by the larger universe, the Hispanic growth in population, won't be the fall sweeps -- it'll be the November sweep for the television side and it'll be the fall book for the radio side. So we should see the benefit of this phenomenal growth in Hispanic population in terms of the ratings for this next sweeps.

And then, we are also seeing -- there are a lot of factors that play into this, how the business grows. But clearly we're seeing some pretty positive growth trends here in our pacing in October. Well, as we finished October, actually. So we're very encouraged.

Okay. One last question, and then I'll pass it on. Are we now past the people meter transition in your markets? Is there anything that you still consider a dislocation in the way that you are being measured? Because those are the numbers that you're going out to sell to the advertisers.

We believe that certainly all the PPMs that have been launched to date, as in the case of all the LPM markets that have been launched to date, that is it. They don't have any plans in the near future to launch any new large PPM or LPM markets.

The thing that we struggle with, or wrestle with, if you will, both in the case of Arbitrons and in the case of Nielsen, is a representative sample and the actual sample size that needs to correlate to the universe estimates. And that was evident when the new universe estimates came out on the Hispanic population. Household size and demo size are much larger and it even showed that there was a greater disparity between the actual in-tab samples and the universe estimates which we, again, continue to wrestle with the rating services with.

So you're saying that for fall book, which hasn't begun yet -- but the fall sweeps begin any second, don't they?

TV fall sweeps started last Thursday, a week ago.

Oh, they started already. So you're stuck with whatever their weighting is right now. And you still think that you are probably underweighted in this survey?

In some markets it's under-represented, the sample's under-represented. But they do weight up for that under-representation. The Arbitron book is October-November- December; that's the fall sweep. Nielsen started last Thursday; that's a 30-day sweep in our metered markets. LPM, you have overnights every night. And we constantly work on that sample, that in-depth sample, and push on these services to improve that sample -- again, to be representative of the Hispanic market.

But the sample can change every day. The sample can change every week. And so when one falls out of sample, a household or people meter falls out of sample, our desire is to see those services replace that sample with a like kind. It's an ongoing process.

Right. It's certainly --

But I will tell you, when we find the universe estimates equal to the in-tabs, we do extremely well, and it shows. So it's worth the constant nagging of those services to make sure that they get it right.

All right; thank you for all the color. Let me (inaudible) and circle back.

Tim Cadet, Citigroup.

Hi; it's [Tim Daggett] from Citi. Could you repeat the pacing data that you said for the month of October?

We said plus 8 for our Television business core, and plus 4 for Radio core. Core means excluding political.

Okay, great. And then, I've seen in the English-language stations there's been an increase in the TV M&A market. What are your thoughts on potentially doing an acquisition?

Well, we continue to look at opportunities. I think what we're seeing -- it think it was Sinclair that said today that they've been looking at opportunities for quite some time, or potential acquisitions, but they just couldn't find the right valuations. Looks like the selling market is adjusting to the reality of today's valuations.

So we'll continue to monitor potential acquisitions and if we can find something that fits or strategy and fits perhaps our existing market clusters, then we'll certainly evaluate it and do the model and take a look at whether we want to move forward.

Thanks.

(OPERATOR INSTRUCTIONS) Bishop Cheen, Wells Fargo.

Hi, thanks. The other thing is the cash; you've got a lot of cash. We've seen some M&A on the TV side; we haven't seen any real radio M&A in some months here. Can you give us your thoughts about valuations and what you're seeing and what you might find attractive? And if you think M&A could actually be a de-levering event for you.

Bishop, I guess the shorter answer is anything in the mid-single-digit range on a multiple basis, from our perspective would make all the sense in the world to us. We've been fairly active in at least looking at deals during the course of the year, and to the extent that we've got that cash to put to use as far as pulling off acquisitions -- again, as Walter said, strategically it would have to make sense. We did some work this year, none of which has panned out to date, but we'll continue to look out on the marketplace and see what's out there.

Okay. And then, how do -- we've heard that seller multiples have been at nine times. The way you look at assets, is that good, bad, indifferent? I mean, how do you think about that if, indeed, that is the touted seller multiple on an average two-year cash --

Well, it's a function of what we can do with it, right? I mean, the seller multiple.

Exactly. It's always the tale of two multiples. The seller multiples reaffirms the gap in your enterprise value to your private market value and the buyer's multiple is the opportunity to arbitrage and create growth.

That's right. And those opportunities are going to happen in markets where we're going to have an existing presence and we can have a bolt-on opportunity. That's probably where the multiple discrepancy is going to be the widest.

A good example of what you're talking about, Bishop, is what happened with the Sinclair acquisition of the Freedom television stations, where the buyer sold the assets at a nine-plus multiple -- the seller, excuse me, sold the assets at a nine-plus multiple and the buyer purchased them at a 6.5 multiple because of the ability to be able to integrate the assets into their existing infrastructure, eliminate corporate expense. And then, of course, they also were able to drive up retransmission fees as a result of deals that they have with the MBPSes that are better than the Freedom television group.

Right. Sounds like a case of it's easier to talk about them than to find them.

It's easier what?

Easier to talk about these opportunities than to find the opportunities.

Well, I think David Smith said they'd been looking for a long, long time. So they -- sounds like waiting and being patient paid off.

Okay. So that was pretty much it, and I appreciate all the color.

Thanks, Bishop.

[Amit Choksey], Generis Capital Management.

Just a quick question regarding 2008 -- you guys did about $146 million in television revenue. Headed into 2012, obviously we all recognize the demographic tailwind you guys have going in there. What are you guys looking for in terms of revenue when you factor that in?

And then secondly, you guys don't have -- obviously, the World Cup was huge in 2010. I'm just curious, do you guys -- how does the Summer Olympics comp against that? I mean, how much revenue -- would that be equivalent or more, even?

The Summer Olympics has not impact on us. We don't have the --

The advertising dollars or anything like that?

No, it has not impact on us.

But as to the question about 2008, Chris, you asked about television revenue. Well, we can't give you where we expect to wind up for TV because that would be providing you with information that's still being worked on. Obviously, we've got high hopes for the political year, being 2012 and you've got the presidential elections, but we're not giving guidance at this point.

Okay. Is it safe to say also that if you get more of the revenue flowing through on the television side, you guys should see some margin expansion?

Correct.

Absolutely.

Okay, got you. All right, thank you.

Thanks.

(OPERATOR INSTRUCTIONS) It's showing no additional questions. I now would like to turn the conference call back over to management for any closing remarks.

Thank you, Jamie, and thank you, everyone, for participating on our third quarter 2011 earnings call. We look forward to talking to you next year when we report our fourth quarter results as well as our full year earnings results as well. Thank you very much.

Thank you for participating in the Entravision Communications Corporation Conference Call. This concludes today's event; you may now disconnect your telephone lines.