Entravision Communications Corp (EVC) 2017 Q3 法說會逐字稿

Good afternoon, and welcome to the Entravision Third Quarter 2017 Earnings Conference Call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Walter Ulloa. Please go ahead sir.

Thank you, Anita. Good afternoon, everyone, and welcome to Entravision's Third Quarter 2017 Earnings Conference Call. Joining me on the call today is Jeff Liberman, our President and Chief Operating Officer; and 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 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.

Our third quarter results include the financial impact of Entravision's participation in the recent FCC TV broadcast spectrum auction. Earlier in the year, we announced that we had generated approximately $264 million in auction proceeds related to the spectrum of 4 stations in 3 markets. This gain has been recorded as revenue in the third quarter.

In addition, auction-related expenses include a noncash charge of $12 million as well as approximately $2.1 million in corporate expense that have also been included in the current quarter's results. Excluding the revenue from the auction results, our core advertising revenue in the quarter was largely in line with our expectations as a result of non-returning political revenue in our Television and Radio segments. This decline in revenue is offset by higher revenues at our Digital segment.

At the same time, we carefully managed our cost in our broadcasting operations, which allowed us to partially offset the impact on our core EBITDA against last year's June quarter, which, as I mentioned, benefited from political advertising.

Overall, we continue to execute on our strategy during the quarter, and we remain well positioned to deliver on our goals in this year ahead.

Our television and radio station has delivered healthy audience shares, and we are expanding our collective digital audience, giving us an attractive and growing multimedia platform for advertisers who wish to target and interact with Latino audiences at the local and national level.

We are pleased with the performance of our Digital division in the quarter, which saw a revenue increase of 24% over Q3 2016 on a pro forma basis. The addition of our recently acquired Headway, an innovative mobile programmatic data and performance marketing company, further enhances our digital capabilities to target audiences and consumers. Thanks to the cash generated from the auction, coupled with our existing cash balance, Entravision continues to be an incredibly strong and unique -- in an incredibly strong and unique financial position, as our current cash balance approximates our total debt. Accordingly, today, the Company's Board of Directors announced its decision to pay a quarterly dividend of $0.05 per share. This dividend will be payable to shareholders on December 29, 2017.

Also as of today, we are pleased to disclose that the company has repurchased approximately 730,000 shares of its common stock since we announced a new $15 million stock repurchase program, authorized by the Board of Directors in August. Approximately $11 million in share repurchase capacity under the program remains and further purchases will continue to be made opportunistically at the discretion of management.

Looking beyond our enhanced efforts to return capital to shareholders, we are also pleased to disclose that we have entered into a new master affiliation agreement with Univision. The new agreement will effectively extend our Univision and UniMas affiliations on all of our markets through December 31, 2026, with the exception of our affiliations in Tampa, Orlando and Washington, D.C. where our affiliations with Univision and UniMas in those markets will expire on December 31, 2021.

We also are pleased to announce that we closed on our acquisition at KMI-R, the NBC affiliate in Palm Springs yesterday. This accretive acquisition provides us with a more powerful media cluster led by our Univision affiliate in a high-density, growing Latino market.

Looking now at our financial results. Revenues increased 412% to $334.6 million in the third quarter, primarily due to the inclusion of our recent FCC auction result. Excluding the auction, our revenues increased by 8% primarily due to our acquired digital operation at Headway. Accounting for the Headway transaction on a pro forma basis and excluding the impact of higher political revenues in the prior year period, total revenues for the company were down 1%.

Consolidated adjusted EBITDA was $262.4 million versus $17.8 million in the prior year, while free cash flow, which we defined in our press release, was $269 million versus $11.9 million in the prior year.

Turning to our Television segment operating results, excluding the FCC auction results. Our television revenues were down 9%, with local down 12% and national down 18%. And retransmission revenue was up 16%.

As a reminder, on July 1 of this year, our Telemundo, San Diego, a television station, was converted to TV Azteca station, which had an adverse impact on revenue. Excluding the loss of our Telemundo affiliation in the prior year as well as political, core television revenues were flat over the prior year.

Core automotive advertising, excluding the loss of our Telemundo affiliation at San Diego, was minus 2%. Including the Telemundo affiliate in prior results, automotive advertising were down 14% versus the prior year.

Auto advertising represented approximately 33% of our total TV advertising revenue in the quarter. Retail, services, restaurants and health care, 4 of our top 10 categories for television, were particularly soft in the quarter compared to the third quarter of last year. Whereas our media category was particularly strong in the quarter compared to the prior year due to rebranding efforts at spectrum charter communications.

Overall, we added 26 new advertisers who spent more than $10,000 during the third quarter, which totaled approximately $591,000 in advertising revenue. Notable new brands in the third quarter included Uber, the Health and Human Services Commission, and Specialty Retailers, Inc.

Turning to our Radios performance. Our Univision television station is built upon their market leadership in the July 2017 suites. For adults 18 to 49 at early local news, or Univision television stations finished ahead of their Telemundo competitors in 13 of 17 news markets where we had head-to-head competition with Telemundo affiliates.

Additionally, early local newscasts are ranked number 1 or 2 against English and Spanish competitors in 14 markets. During a full week, our Univision and UniMas television stations combined have accumulative audience of 3.2 million persons 2-plus in -- across our television platform compared to Telemundo's 2 million persons 2-plus. We have 59% more viewers than Telemundo in -- across our Univision and UniMas affiliate footprint, and we reached 160,000 more viewers than we did a year ago.

During weekday prime time, when compared to all stations in total, we had higher ratings than one of the big 4 networks in 13 markets among adults 18 to 34 and adults 18 to 49 and 12 markets among adults 25 to 54.

The Univision Premios Juventud award show in July 2017 was among the top 10 TV prime time programs -- broadcast TV prime time program for the night among adults 18 to 34 in 15 markets. Among adults 18 to 49 and 25 to 54, the show ranked among the top 10 in 8 of our markets.

Turning to our Audio division. Audio revenues were down 12% during the third quarter compared to the prior year. Local revenues were down 6% and national revenues decreased 21% in the quarter. Excluding political in the prior year period, core Audio revenues were down 11% end of third quarter.

Notable new advertisers to our Audio network during the third quarter included La La Milk, AT&T and U.S. Postal Service. These brands choose to advertise at Entravision due to our superior targeting capabilities and consistently strong audience shares, supported by our nationally recognized talent. We continue to work closely with our syndicated radio personalities in supporting their roles, not only as successful entertainers with household names, but also as multi-platform brand ambassadors and influencers for our major advertising partners. Automotive advertising was down 8% for Audio segment and represented 16% of our total audio advertising revenue.

Breaking out the various auto tiers. Tier 1, the manufacturing -- manufacture revenue was down 90%; while Tier 2, regional auto dealers, saw an increase of 4%; and Tier 3, local auto dealers, were down 3%. Retail services and travel and leisure, all saw single-digit gains. The remainder of our top 10 categories saw decreases compared to the third quarter last year. Overall, we added 19 new advertisers who spent more than $10,000 during the third quarter which totaled approximately $454,000 in advertising revenue.

Notable new brands in the third quarter included Fred Loya Insurance, Pep Boy Auto Parts and California Department of Health. Looking at our Audio division ratings performance amongst Spanish-language radio stations, De Erazno y La Chokolata show is ranked #1 in 6 of our markets, released to date for summer 2017, among Latino adults 18 to 49, among Hispanic adults 25 to 54, the show ranked #1 in 6 markets.

Piolin ranked #1 or 2 amongst Spanish-language radio stations in 5 of the summer 2017 markets release to date among adults 18 to 49 and adults 25 to 54.

Lastly, with regard to our new format, Las Suavecita radio, on KSSE-FM in Los Angeles, the station is performing well with solid year-to-year audience growth. Comparing 2017 to September 2016, our average quarter hour ratings for Prime, Mondays through Fridays, 6:00 a.m. to 7 p.m. among Hispanic adults 18 to 49 and 25 to 54 increased 50%.

Turning now to our digital business. Revenues increased 198% during the quarter. On a pro forma basis, digital revenues increased by 24%, representing approximately 24% of our company's total non-auction related revenues in the quarter. With the Headway acquisition, Entravision has further enriched its powerful add-stack of services, all which are fully advertiser-centric. This acquisition is part of the ongoing strategies to sustain a leading position within the Latino market in the U.S. and abroad.

Our 4 core development areas are; first, the branded and customer engagement platform alongside our premium digital brands, content and communities; second, an add-stack that provides a vast and well-filtered reach through our publishers; third, a sophisticated mobile programmatic and performance demand-side with data-rich platforms, clear attribution and machine learning optimizations to better support our clients and our margins; fourth and last, a strong 14-country distribution and sales organization to grow its new products in new markets.

Important synergies and value will be created as we advance our existing legacy media data sets and business intelligence as well as our integrated media and digital services. Pulpo -- digital services, Pulpo and Headway. These synergies will improve our overall digital product offerings, our digital margins, our digital growth and our research and development and product development capabilities.

On this front, Entravision continues to build a leading database of Latino online navigation and purchasing behavior. Also, we are building our data management platform to enable efficiencies, productivity, powerful insightful product offerings to our clients on broadcast digital and integrated solutions.

Entravision continues to attract the diverse range of well-known brands to its digital platform. Major advertisers of the third quarter include Subway, Toyota, Charter Communications, Buffalo Wild Wings, PNG, U.S. Army, BMW, Chevy, Wells Fargo, LA Care and Unilever.

In terms of reach, Entravision remains the #1 digital Latino platform to reach Latinos in the United States. Based on the most recent comScore data, we connect with 41 million unique U.S. Latinos across all acculturation levels, delivering the total Hispanic market to our advertisers.

According to Appsfire rankings, Mobrain is the third mobile ad volume platform in Latin America and the #12 worldwide.

To put this information in context, we reached more online Latinos in the U.S. than Facebook, and in Latin America, we have greater app mobile ad inventory volume than Twitter, right behind Facebook and Google. So we believe mobile will continue to be a driver of revenue growth for Entravision in the years ahead.

To serve this massive audience, Entravision has doubled its efforts on content quality, digital video production, social interaction and user experience, and has published over 6,000 news, sports and entertainment content image and video pieces during the third quarter. These stories produced over 9 million views across our owned and operating websites and over 75 million views on all platforms, which represent an increase of 119% in the third quarter when compared to the previous quarter.

In the digital audio front. Entravision also experienced an impressive growth based on a very strong community and engagement strategy focus. During the third quarter, we streamed over 7.3 million hours of digital audio, reaching 750,000 unique listeners. We will soon release AudioEngage, designed as one of the leading digital audio marketplaces to reach Latinos in the U.S. and in Latin America.

We believe this has great synergies with our traditional audio business. As we continue strengthening the bonds with our local communities, we are thrilled to see that our community in social media following surpassed 9.4 million followers across key networks, including Facebook, Twitter, and Instagram. Overall, Entravision continues to strengthen its digital platform through its commitment to produce high-quality content, increased community engagement and, above all, to provide the most powerful set of Latino data and digital services to our advertisers. We will continue to form strong alliances, acquisitions and digital-skill developments.

Turning now to our pacings for the fourth quarter. Television revenues are pacing minus 23 in the fourth quarter. As a reminder, on July 1 of this year, our Exa station, serving the San Diego market switched its affiliation from Telemundo to Azteca America. Excluding the impacts of this change, our TV reviews are pacing minus 7%. Recall also that we are up against 5.3 million in non-returning political in the fourth quarter of last year, excluding the Telemundo Azteca affiliation swap and political, our TV pace is flat for the fourth quarter. Our audio advertising revenue is currently pacing minus 13% in the fourth quarter. Excluding political, core audio revenue is pacing minus 6%.

Digital revenues are currently pacing up mid-teens on a pro forma basis with the Headway acquisition. To clarify, total pro forma digital revenue in Q4 of last year, including Headway, was approximately $17.7 million.

In summary, with the Univision affiliation extension now completed and the FCC auction behind us, we now find ourselves in an excellent financial position to execute our strategy of building on our existing unique audience reach and targeting capabilities while carefully managing our cost. We will continue to focus on growing our free cash flow through acquisitions and existing operations. We'll continue to evaluate and remain committed to returning increasing amounts of capital to our shareholders, and we'll begin -- as we began doing in August with an increased dividend and share buyback plan.

We will also focus on putting to a portion of our auction proceeds to work in accretive tax efficient manner -- in an accretive tax-efficient manner by seeking M&A opportunities within our existing broadcasting footprint in order to strengthen our competitive position in the same vein as our recently closed acquisition at the NBC affiliate in Palm Springs.

In addition, we will continue to seek digital assets that can complement our current digital portfolio and strategy. Importantly, we will pursue this acquisition strategy while keeping a net leverage profile of less than 3x. I will now turn the call over to Chris to cover the numbers in more detail.

Thank you, Walter, and good afternoon, everyone. As Walter has discussed, total ad revenue for the quarter was up 412% at $334.6 million compared to $65.3 million in the same quarter of last year. Operating expenses increased 7% to $43 million in consolidated adjusted EBITDA, which was $262.4 million. Excluding revenue and expenses relating to the auction, total revenue was up 8% over the prior year to $70.6 million while EBITDA was down 29% versus the prior year at $12.7 million. During the third quarter 2017, the company paid a cash dividend of $0.05 per share to shareholders of the company's class A, B and U common stock. The total amount of cash dispersed for the dividend was $4.5 million. The company announced today that the Board of Directors has declared a quarterly cash dividend of $0.05 per share to shareholders of the company's common stock payable on December 29, 2017.

The total amount of cash to be dispersed with this quarterly dividend will be approximately $4.5 million.

As previously announced, we currently anticipate making cash dividends on a quarterly basis in future periods. The company also announced today that on October 2, 2017, the company entered into a new affiliation agreement, which superseded and replaced the company's prior affiliation agreements with Univision. Additionally, on the same date, the company entered into a new a proxy agreement and new marketing and sales agreements with Univision, each of which superseded and replaced the company's prior such agreements with Univision.

The terms of each of these new agreements expire on December 31, 2026 for all of the companies Univision and UniMas network affiliate stations. Except that the new agreements will expire on December 31, 2021 with respect to the company's Univision and UniMas network affiliates stations in Orlando, Tampa and Washington, D.C. On November 1, 2017, the company completed the acquisition of television Stations KMIR-TV, the local NBC affiliate and KPSE-LD, the local MyNetworkTV affiliate serving the Palm Springs, California area, for an aggregate purchase price of $21 million.

For the quarter, TV net revenue from advertising and retransmission consent revenue was 9% to $36.5 million, compared to $40.4 million in the same quarter of last year. The decrease in our TV segment revenue was primarily attributable to a decrease in local and national revenue and a decrease in political advertising revenue, which was not material in 2017, partially offset by an increase in retransmission consent revenue. Retransmission consent revenue for the 3 months period ended September 30, 2017 and 2016 were $8.5 million and $7.4 million, respectively. For the quarter, net revenue from the spectrum usage rights was $263.9 million.

Radio net revenue for the quarter was down 12% to $16.9 million compared to $19.2 million in the same quarter of last year.

The decrease was primarily attributable to decreases in local and national advertising review and a decrease in political advertising revenues, which was not material in 2017.

Digital net revenues for the quarter was up 198% to $17.1 million, compared to $5.7 million in the same quarter of last year. The increase in our digital segment was primarily attributable to the acquisition of Headway during the second quarter of 2017, which did not contribute to our results of operations in prior periods. For the quarter, cost of revenue in our Digital Media segment was up $9.9 million compared to $2.3 million in the same quarter of last year. The increase was primarily attributable to the acquisition of Headway during the second quarter of 2017, which did not contribute to the cost of revenue in prior periods.

Cost of revenue related to television revenue from spectrum usage rights was $12.1 million for the quarter. Operating expenses for the quarter were $43.0 million, up 7%. TV operating expenses, excluding noncash compensation expense, were down 5% at $20 million. Audio operating expenses, excluding noncash compensation expense, were down 4% at $15.9 million. Digital operating expenses, excluding noncash compensation expense were up 163% at $6.9 million. Corporate expenses for the quarter were up 43% to $8.2 million, compared to $5.7 million in the same quarter of last year. Excluding noncash compensation expense, corporate expenses for the quarter were $7.4 million versus $5.1 million in the same quarter of last year, an increase of 46%. Excluding noncash compensation expense, the increase in corporate expenses was primarily due to increases in expenses associated with the FCC auction for broadcast spectrum and an increase in salary expense.

Income tax expense was $96.2 million for the quarter, while cash taxes paid were $0.1 million. Given the elimination of our full valuation allowance in the fourth quarter of 2013, future income tax expense will run at approximately 40% of pretax income, although most of this expense will continue to be noncash, given our NOL offsets. Earnings per share for the quarter increased to $1.71 per share, compared to $0.06 per share in the third quarter of last year. Free cash flow, as defined in our earnings release, increased to $268.9 million for the quarter, compared to $11.9 million for the same quarter of last year.

Cash interest expense for the quarter was $3.3 million compared to $3.6 million in the same quarter of last year.

Cash capital expenditures for the quarter were $2.3 million. Capital expenditures for the 2017 year are expected to be approximately $13 million.

Turning to our balance sheet. As of September 30, 2017, our total debt was $290 million and our trailing 12-months consolidated adjusted EBITDA was $310.5 million. Cash on the books was $287 million as of September 30, 2017. Net of $20 million of unrestricted cash in the books, our total leverage, as defined in our 2013 credit agreement, was 0.9x as of 9/30/2017. That concludes our formal remarks. So Walter and I will now hand it back over to Anita for questions.

Anita?

(Operator Instructions)The first question comes from Michael Kupinski with NOBLE Capital Markets.

First, I was just wondering, in terms of your TV pacings. How is that reflective of the TV acquisitions that you made in this quarter? Is it reflected in those numbers? Or how do you account for those?

No Michael, the pacings, that deal just closed yesterday and the pacings are not factoring in the incremental revenue and expense -- or the revenue, I should say, from the KMIR acquisition.

Got you. And I was wondering if you can -- do you have any thoughts in terms of either annual revenues or what type of quarterly revenues those stations might generate?

Yes, Michael, I don't know if we're going to break those out on this call. I think what we want to do is get our arms around the operation and convey those on our next quarterly call.

Okay. In terms of the loss of the San Diego affiliation, I thought that was roughly $1.5 million in the quarter in revenues and cash flow. And I was just wondering, based on the pacing data, it would seem like the impact was more than that. Can you just kind of give us some color on what that affiliation change meant or means in terms of the quarter?

Sure. It was about $3 million in revenue against $1 million in expense. So that was contributing about $2 million in cash flow. And then offset by -- so that's the loss, and then offset by the incremental, I'd call it a little less than $1 million in revenue from Azteca, with the $0.5 million in expense. So there's about $0.5 million of incremental cash flow to offset. So net of those 2, you're correct, it's about a $1.5 million cash flow hit as a result of the affiliation swap.

Got you. And in terms of the corporate expenses, we're a little elevated. Is that what you're referring to by the $2.1 million extra expenses related to spectrum auction, is that where it fell?

Right there were $2.1 million incremental corporate expenses associated with the auction that we booked, commensurate with the booking of the revenue.

And so $6 million would be roughly a good run rate for that line item going into the next quarter?

Going into the next quarter, yes, a little less than that. Maybe around $5.7 million, $5.8 million .

And can you just talk a little bit about what's going on with -- in terms of radio, what the weakness is really? I know that you've got a big lift out of your networks there for a while, with La Chokolata and so forth. But it seems like your radio is certainly underperforming the rest of the industry at this point. Can you just kind of talk on what the issues are?

This, Michael, this is Jeff Liberman. We've been working really hard on, as we call it, a revenue enhancement plan, and we've been concentrating really on the Alex Lucas show and also the Erazno Choko show at first year, and we are starting to see some improvements through that enhancement plan in our outside markets -- I mean, the outside market not in Los Angeles as rapidly. As you know, L.A. is a very competitive marketplace and it's going to take us a little bit longer to get to that point where we're starting to see these increases in Los Angeles.

Just to add a little color to that, Michael, just to put it to context. It's really about our competition in Los Angeles market. We talked about that core pace being a minus 6 for fourth quarter. If you were to exclude L.A., we're down to a minus 1, so -- for the radio divisions. So really, it's one market that we're focused on getting turned around.

Got you. And are you -- on your television side, given the pacing data that's also pretty weak, is there any specific issues in the television space as well?

I think the real headwind for TV, once you've kind of filtered out the Telemundo issue, you're essentially looking at flattish pacing. The real concern with the TV segment is just autos. Autos is weakening on us, and I don't think that's much of a surprise, but that's just something that we have to contend with. Now TVB numbers just came out earlier today, and excluding political, TV growth rates were minus 10 for the industry. So to finish off flat, I guess, we'll take it compared to where the industry ended up.

Yes, and some of that are related to the, I think, stabilization in the ratings at Univision?

Yes, ratings for UniVision have actually improved somewhat over the past, we'll call it, 9 to 12 months. So if you're looking at the annual comps, they're getting easier, and their ratings are starting to improve. So if there's anything we're hoping, that will be a tailwind, going forward.

And also, Michael, in terms of Univision's ratings, we haven't seen the impact of any decline in ratings from the Univision program in like -- across our markets, now granted we're in high-density, high-growth Latino market, so perhaps, that's part of the reason. And the other reason, I think, is the fact that we -- our news programming is so strong, and #1 in 14 of 18 markets when we go head-to-head against Telemundo.

Got you. And can you just talk quickly -- and my last question, I promise. Last question, the M&A environment and what the outlook is there. I know that you have a lot of cash to deploy at this point. So if you can give us an update.

We continue to look at a number of opportunities, but nothing to announce. Our focus is we're looking in 2 areas, right? First, television, where we might be able to bolster existing clusters by adding an English-language television affiliate like we did in Palm Springs. But we're looking for markets that are high-density, Hispanic markets, if we're going in that direction. The area we're looking at is in digital. We continue to look for digital acquisitions that might enhance our current platform, and we're pleased with what we've done so far with digital. Digital will be 20% or more of our total net -- total revenue by the end of the year. That's why we've forecast that kind of growth less than 2 years ago, and we believe we're well positioned to reach that goal. And then, of course, now we're going to move on to increasing that goal to 30%, but that will be for 2018 and beyond.

(Operator Instructions) The next question comes from Gordon Hodge with Tracker Research.

I just got a couple of questions. One, I just wanted to verify that the fourth quarter TV pacing, will that include retrans or not?

Fourth quarter does not include retrans, no. Those -- that's just advertising pace.

That's what I thought. Okay, great. And then on the subject of retrans, nice increase this quarter. I was wondering, and I know with the renegotiation with Univision, I'm just wondering if that reflected any kind of catch-up where they hadn't been paying you on a new split basis, they're enjoying new -- higher retrans numbers, and if that's an indicative number, going forward, or was there someone -- like I said, a one-time catch-up in that?

No. That's a good point. There was about a $700,000 catch-up payment in that $8.5 million number that we booked for third. So you're looking at retrans. Look, overall, you're looking at retrans rates to go up between mid- and high single digits for the next -- through the end of our new term at 2026. So that's the growth profile we're looking at now. But you should not run rate that $8.5 million number into the next quarter. It should be somewhere in the mid $7 million range.

Okay, very good. And then, last question. Just curious whether you had a noticeable impact or enjoyed a noticeable impact from the Gold Cup this year. I think it was held for last year, but it was in second quarter instead of third this year.

The Gold Cup was generally a positive experience. But you're not talking about anything that really was material as far as our overall performance was concerned.

Next question is a follow-up from Michael Kupinski with NOBLE Capital.

I was wondering if you can give us a little update on the prospect of further spectrum sales. I know that you were potentially working on at least one market for that. I was wondering if that is still ongoing or is that -- if there's been some resolution there.

There are conversations that are ongoing on multiple markets -- in multiple markets on that front, Michael. But we don't have anything to report as of right now.

Okay. And then in terms of, I think, in one of your other markets that you're -- there were some prospects that you might see the ability, maybe, to rent the station. Is that still on the table at this point?

Yes, all of the one-offs with respect to channel sharing opportunities that -- we're still hunting down, Michael. So I don't think anything definitive in either direction has been determined yet. It's all still open.

Okay. But they're still ongoing, that's a good thing.

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

Thank you, Anita, and thank you, everyone, for participating in our third quarter investor call and earning results. We look forward to speaking to all of you in the first quarter of 2018, when we'll announce our fourth quarter 2017 earnings results and full year results. Thank you.

This conference has now concluded. Thank you for attending today's presentation. You may now disconnect.