Hispanic Market Opportunity • the U.S
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WedbushWedbush Morgan Morgan SecuritiesSecurities LosLos AngelesAngeles DecemberDecember 10,10, 20082008 UseUse ofof non-GAAPnon-GAAP FinancialFinancial MeasuresMeasures This presentation includes certain non-GAAP financial measures. The company has previously provided a reconciliation between these non-GAAP financial measures and the most directly comparable GAAP measure. That reconciliation was included in the company’s press release reporting results for the third quarter of 2008, which has been posted on the company’s website and filed with the SEC under the cover of form 8-K. Forward-LookingForward-Looking StatementsStatements DisclosureDisclosure This presentation includes certain forward-looking statements and projections provided by the Company. Any such statements and projections reflect various estimates and assumptions by the Company concerning anticipated results. No representations or warranties are made by the Company or any of its affiliates as to the accuracy of any such statements or projections. Whether or not such forward-looking statements or projections are in fact achieved will depend upon future events some of which are not within the control of the Company. Accordingly, actual results may vary from the projected results and such variations may be material. Statements contained herein describing documents and agreements are summaries only and such summaries are qualified in their entirety by reference to such documents and agreements. PresentationPresentation OverviewOverview • Company • A leading diversified Spanish-language media company, serving the fast-growing U.S. Hispanic market, with a unique group of assets including television and radio. • Hispanic Market Opportunity • The U.S. Hispanic population, average household income and consumer spending power are all growing at a rate faster than that of non-Hispanics • Media Assets • Television: largest Univision and TeleFutura affiliate group • Radio: one of the largest U.S. Spanish-language radio groups • Financial • Net debt to Consolidated adjusted EBITDA of 4.3x • $118 MM of cash on hand as of 9/30/08 InvestmentInvestment HighlightsHighlights • A Leading Diversified Media Company Serving U.S. Hispanics • Media Clusters Located in Many of the Fastest-Growing and Highest-Density U.S. Hispanic Markets • Consistent Free Cash Flow • Radio operating as second cash flow engine • Significant upside from developmental stations • Efficient Cost Structure • Virtually no cash network television programming expense • Centralized radio infrastructure • Experienced Management with Significant Equity Ownership • Strong Balance Sheet WeWe AreAre LocatedLocated inin thethe Fastest-GrowingFastest-Growing HispanicHispanic MarketsMarkets Springfield, MA Boston, MA Hartford, CT Sacramento, CA Reno, NV Denver, CO Stockton, CA Modesto, CA Washington, DC Monterey/ Aspen, CO Colorado Springs, CO Salinas, CA Las Vegas, NV Wichita, KS Santa Barbara, CA (launching in Q1 2009) Palm Springs, CA Albuquerque, NM Los Angeles, CA Phoenix, AZ San Diego, CA Lubbock, TX Yuma/El Centro, CA El Paso, TX San Angelo, TX Odessa, TX Houston, TX Orlando, FL Tampa, FL Entravision Communications Laredo, TX Corpus Christi, TX • 51 Television Primary Stations Miami, FL • 48 Radio Stations McAllen, TX LocatedLocated inin 1313 ofof thethe 2020 Fastest-Fastest- GrowingGrowing MajorMajor U.S.U.S. HispanicHispanic MarketsMarkets Hispanic TVHH Household Growth 2000-2009 (based on 2009 top 25 Hispanic DMA’s) 2009 vs 2000 Hispanic % Hispanic EVC Media DMA Hispanic TVHH % Growth Rank Market Rank Properties Growth 2 17 Orlando 155% TV / Radio 4 22 Las Vegas 110% TV / Radio 5 8 Phoenix (Prescott) 90% Radio 5 18 Tampa/St. Pete (Sarasota) 90% TV 7 20 Washington D.C. (Hagerstown) 71% TV 8 4 Houston 69% Radio 9 15 Denver 67% TV / Radio 12 11 Sacramento/Stockton/Modesto 50% Radio 14 24 Boston (Manchester) 43% TV 15 10 Harlingen-Wslco-Brnsvl-McAllen 41% TV / Radio 16 3 Miami-Ft. Lauderdale 35% Radio 18 12 Albuquerque-Santa Fe 30% TV / Radio 20 13 San Diego 26% TV Source: Nielsen Universe Estimates as dated. UniquelyUniquely PositionedPositioned inin 1414 ofof thethe 2020 Highest-DensityHighest-Density U.S.U.S. HispanicHispanic MarketsMarkets 2009 Hispanic TVHH Household Penetration Hispanic Hispanic EVC Media DMA % TVHH Hispanic Density Rank Market Rank Properties 1 35 Laredo 93% TV 2 10 McAllen 83% TV / Radio 3 16 El Paso 72% TV / Radio 4 36 Yuma/El Centro 55% TV / Radio 5 26 Corpus Christi 53% TV 7 3 Miami 43% Radio 10 40 Odessa/Midland 38% TV 11 37 Palm Springs 38% TV / Radio 12 12 Albuquerque- Santa Fe 36% TV / Radio 14 1 Los Angeles 33% Radio 15 34 Monterey-Salinas 30% TV / Radio 16 47 Lubbock 30% TV / Radio 17 78 San Angelo 29% TV 19 4 Houston 26% Radio Source: 2009 Nielsen Universe Estimates. ContinuedContinued U.S.U.S. HispanicHispanic GrowthGrowth StrengthensStrengthens BusinessBusiness StrategyStrategy 2010 – 49.9 million U.S. Hispanics 2010 Percent Hispanic Population by County Source: Global Insight – 2007 Hispanic Market Monitor; Map Courtesy of Geoscape International, American Marketscape DataStream: 2003 Series RapidlyRapidly GrowingGrowing U.S.U.S. HispanicHispanic BuyingBuying PowerPower U.S. Hispanic Buying Power (projected % growth from 2002) 450% Non-Hispanic Hispanic 500 300% 190% 250 110% 47% 196% 143% 99% 64% 0 31% 2002 2007 2012E 2017E 2022E 2027E $576$845 $1211 $1668 $2302 $3164 U.S. Hispanic Buying Power ($ Billions) Source: Global Insight – 2007 Hispanic Market Monitor U.S.U.S. HispanicHispanic AdvertisingAdvertising ForecastForecast Advertisers are responding to powerful demographic trends by dedicating more dollars to Spanish-language media. ($ millions) 4500 4,119 3,918 4000 3,716 3,514 9% 3,301 3500 R 3,162 CAG 3000 2,790 2,463 2,220 2500 2,130 1,890 2000 1,710 1,408 1500 1000 500 0 199719981999 2000 2001 2002 2003 2004 2005 2006E 2007E 2008E 2009E Source: Hispanic Business Inc, The U.S. Hispanic Media Market, 1999-2005, 2000-2007; Years 2004-2008 are HispanTelligence data and projections released April 2006 U.S.U.S. HispanicHispanic MediaMedia UsageUsage Avg. # Hours Per Week Spent with Each Medium Non- Hispanic Hispanic Hispanic Index TV 28.9 17.0 170 Radio 19.0 13.0 146 Online* 4.3 4.6 93 Magazine 3.3 4.3 76 Newspaper 3.2 2.6 123 Sources: Market Segment Research & Consulting, Inc. “The MSR&C Ethnic Market Report” 2003; * Online based on 2006 Simmons UnivisionUnivision AffiliatesAffiliates inin KeyKey U.S.U.S. HispanicHispanic GrowthGrowth MarketsMarkets Springfield, MA Boston, MA Hartford, CT Reno, NV Denver, CO Washington, DC Monterey/ Colorado Springs, CO Salinas, CA Las Vegas, NV Wichita, KS Santa Barbara, CA (launching in Q1 2009) Palm Springs, CA Albuquerque, NM San Diego, CA Lubbock, TX Yuma/El Centro, CA El Paso, TX San Angelo, TX Odessa, TX Orlando, FL Tampa, FL Laredo, TX Corpus Christi, TX McAllen, TX TelevisionTelevision OverviewOverview • Univision Networks Provide Premier Spanish-language Programming • Univision Networks • Largest Univision affiliate group in 23 markets • Largest TeleFutura affiliate group in 18 markets • In Entravision markets, Univision/Telefutura duopolies enjoy 73% of the Spanish-language broadcast television prime time Adult 18-49 share • Revenue Outperforms the Industry PremierPremier Programming Programming • Exclusive Agreement with Univision • Highest-rated programming • Virtually no cash cost for programming • 25-year affiliation agreements • Strong Local News Programming • Brands stations in local markets • Relevant community-based content Top-Ranked Local News Focusing on issues relevant to Hispanics, Entravision’s local newscasts are #1 or #2 in 12 markets in OVERALL 18-34 viewers. Hispanic Adult 18-34 DMA Station News TP Rank Market Rank Rating 10 McAllen/Harlingen KNVO #1 6.2 12 Albuquerque KLUZ #1 2.5 13 San Diego KBNT #1 1.3 16 El Paso KINT #1 4.1 18 Tampa WVEA #2 0.9 20 Washington D.C. WFDC #2 tie 0.7 22 Las Vegas KINC #1 3.0 34 Monterey KSMS #1 3.3 35 Laredo KLDO #1 7.6 36 Yuma/El Centro KVYE #1 tie 1.3 37 Palm Springs KVER #1 2.8 44 Santa Barbara KPMR #1 1.5 Source: NSI July 2008/May 2008/February 2008/November 2007 average (ET/PT M-F 6pm-6:30pm, CT/MT M-F 5pm-5:30pm) DominatingDominating PrimePrime TimeTime Entravision’s Univision affiliates are #1 or #2 in prime time in 10 markets, beating the big 3 networks Fox, CW and MNT. Hispanic Prime Time Adult 18-34 DMA Station Market Rank Rank Rating 12 Albuquerque KLUZ #1 4.0 16 El Paso KINT #2 tie 1.9 18 Tampa WVEA #2 2.3 22 Las Vegas KINC #1 5.3 26 Corpus Christi KORO #2 3.1 34 Monterey KSMS #1 4.2 35 Laredo KLDO #2 2.4 37 Palm Springs KVER #1 4.4 40 Odessa-Midland KUPB #2 2.4 44 Santa Barbara KPMR #1 3.8 Source: NSI July 2008/May 2008/February 2008/November 2007 average (Prime ET/PT M-F 7pm-10pm, CT/MT 6pm-9pm) TeleFuturaTeleFutura AffiliatesAffiliates inin KeyKey U.S.U.S. HispanicHispanic GrowthGrowth MarketsMarkets Boston, MA Hartford, CT Denver, CO Washington, DC Monterey/ Salinas, CA Las Vegas, NV Santa Barbara, CA Palm Springs, CA Albuquerque, NM San Diego, CA Yuma/El Centro, CA El Paso, TX San Angelo, TX Orlando, FL Tampa, FL Laredo, TX Corpus Christi, TX McAllen, TX OwnedOwned RadioRadio StationsStations InIn KeyKey U.S.U.S. HispanicHispanic GrowthGrowth MarketsMarkets Sacramento, CA Reno, NV Denver, CO Stockton, CA Modesto, CA Monterey/ Aspen, CO Salinas, CA Las Vegas, NV Albuquerque, NM Los Angeles, CA Palm Springs, CA Phoenix, AZ Yuma/El Centro, CA Lubbock, TX El Paso, TX Houston, TX Orlando, FL Entravision Radio Group • 48 Radio Stations McAllen, TX Miami, FL • 37