Good day, everyone and welcome to the Entravision Communications Corporation Fourth Quarter and Full Year 2017 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] And please note that today’s event is being recorded. And I would now like to turn the conference over to Mr. Walter Ulloa. Please go ahead.

Thank you, William. Good afternoon, everyone, and welcome to Entravision's fourth 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 expressed 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. The fourth quarter marked an end to a remarkable year for Entravision. To briefly review, recall that in March, we started out the year by announcing our results in the FCC TV broadcast incentive auction where we generated $263.6 million in gross proceeds. These proceeds coupled with our existing cash balance and free cash flow generation left us in a cash position approximately equal to that of our debt, creating what we now believe to be one of the healthiest balance sheets in the media business. Also in March, to further bolster our digital business, we announced our acquisition of Headway, a leading provider of mobile programmatic data and performance digital marketing solutions in the United States, Mexico, Latin America and Spain. Headway is a pioneer and leader in digital advertising…

Thank you, Walter and good afternoon, everyone. As Walter has discussed, net revenue for the quarter was up 5% to 73.5 million compared to 70.3 million in the same quarter of last year. Operating expenses increased 10% to 45.1 million and consolidated adjusted EBITDA was 11.2 million. Net revenue for the year was up 107% at 536 million compared to 258.5 million in the prior year. Operating expenses for the year increased 5% to 168.4 million and consolidated adjusted EBITDA was 51.4 million. For the quarter, revenues from advertising and retransmission consent revenue in our TV segment were down 17% to 36.0 million compared to 43.4 million in the same quarter of last year. The decrease in our TV segment revenue was primarily attributable to decreases in local revenue and national revenue and a decrease in political advertising revenue, which was not material in 2016, partially offset by an increase in retransmission consent revenue. We generated a total of 7.5 million in retransmission consent revenue for the three month period ended 12/31/17 from 7.3 million in retrans revenue for the three month period ended December 31, 2016, an increase of 0.2 million. For the year, revenues from advertising and retrans revenue in our TV segment were down 7% to 148.1 million compared to 159.5 million in the prior year. The decrease was primarily attributable to decreases in local and national advertising revenue and a decrease in political advertising revenue, which was not material in 2016, partially offset by an increase in retrans consent revenue. We generated a total of 31.4 million in retrans revenue for the year ended 12/31/2017 from 29.6 million in retrans consent revenue for the year ended 12/31/2016, an increase of 1.8 million. Net revenue from spectrum usage rights was 263.9 million for the year ended 12/31/2017.…

[Operator Instructions] And our first questioner today will be John Kornreich with JK Media.

Yeah. I have a couple. One is on corporate expenses, depending on how you want to define it is roughly 10% of revenues. That’s a lot. Any plans to get that back under control in the next year or two.

Hi, John. Yeah. The corporate expenses, are you referring to the year, for the quarter?

It was 11% as reported in the quarter and 10% for the year. I know if you take out non-cash comp, which I would not do, it's a little bit less, but still high.

Right. Well, for the year, I will say this. There was almost a little more than $2 million in corporate expenses that were associated with the auction. So that's obviously non-recurring and we are in the process to look for expense trimmings to just realign the business with what's happening on the revenue front are ongoing.

So what do you expect corporate to be with and without non-cash comp in ‘18.

Well, we finished -- before non-cash comp, we finished at around 21 million. I would expect in 2018, to be right around that same number, if not slightly less.

Okay. Low-20s.

Yes.

Okay. Next year favorite topic, radio. It's now only 5% of the company's BCF with concomitantly a 5% margin. What are the plans to dispose of this operation? Maybe, there's somebody out there who thinks they can get a 20% or 25% margins here again and that would mean you could sell this thing for 100 million bucks.

Yeah. Just to answer it as best I can, I mean there are a couple things. We have no plans to divest the radio business at this time. I just don't think that the market is ready for the kind of acquisition you're talking about. Number two, we're taking some pretty strong measures to do two things, to bolster revenue, but also at the same time, to decrease our expenses significantly. And obviously that's something that we've started doing last -- in fourth quarter last year and continues into the first quarter and we've already made some -- making some pretty important decisions around expense reduction.

Do you expect the radio division to remain profitable in ’18?

Yes. We do.

Even though, it was only 1 million bucks in the fourth quarter, which is a strong quarter?

We're in the process of doing this as Walter kind of alluded to, is just looking at our expense structure with radio and realigning what's happening with revenue. So, yes, we expect it to be profitable in 2018.

What are the M&A opportunities in TV for your kind of company?

There are just a lot, John. I mean, they are -- and we see everything that's out there and from --

In English or Hispanic.

Well, if they were English in a high density Latino market, by that, I mean the market is like 50% more -- or more Latino population and it could be any of the big four, but beyond that, Univision doesn't appear to be willing to divest any of their TV properties and that's basically our opportunities is Univision or a big four TV networks.

Like what we just did in Palm Springs.

Did I hear you say that the TV core for all of ’17 adjusted for political, adjusted for retrains, adjusted for San Diego was about flat.

I said it was plus 1 I think.

I have minus 1 on my note. For all of ’17?

Yeah. All of ’17, yeah, plus 1. Up 1.

Up 1 all of – okay. Chris, what do you expect retrans to be in the New Year?

Retrans will be somewhere, for 2018 year end, it’s somewhere around the 31 million mark.

Okay. Up slightly. Last question, on retrans, looking at around 30 million of annualized retrans, I take it the net margin on this is 100%?

That's correct.

[Operator Instructions] And there look to be no further questions, so this will conclude our Q&A session. I would now like to turn the conference back over to management for any closing remarks.

Thank you, William and thank you, everyone for joining us on our fourth quarter 2017 investor call. Please join us in May of 2018 of this year when we will announce the earnings results for the first quarter. Thank you.

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.