Q2 2019 Earnings Call
Greetings and welcome to the National Cinemedia Inc.
Q2, 2019 earnings conference call at this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. If any once you require operator assistance during the conference. Please press star zero on your telephone keypad. Please note. This conference is being recorded I would now like turn the conference over to your host.
Katie Scherping Chief Financial Officer. Please proceed sir.
I'm joined today here in Denver by our CEO , Thomas escape and our chairman of the Board Mark Siegel.
I'd like to remind our listeners that this conference call contains forward looking statements within the meaning of section 27 eight of the Securities Act of 1933 as amended and section 21 E of the Securities Exchange Act of 934 as amended.
All statements other than statements of historical facts communicated during this conference call may constitute forward looking statements.
These forward looking statements involve risks and uncertainties.
Important factors that could cause actual results to differ materially from the company's expectations are disclosed in the risk factors contained in the companys filings with the FCC.
All forward looking statements are expressly qualified in their entirety by such factors.
In accordance with regulation G. We have reconciled these amounts back to the closest GAAP basis measurement.
These reconciliations can be found at the end of todays earnings release, which may be found on the investor page of our website at Www Dot <unk> Dot com.
Now I'll turn over turn the call over to Mark.
Thank you.
Good afternoon and welcome everybody.
As you can see on this new chairman I'm, joining the earnings call. This quarter on behalf of the board of directors to introduce Tom for the first time and see I'm the CEO .
As you know with the help of Korn Ferry. The board recently completed an extensive search involving dozens of highly qualified candidates to identify a new CEO to lead and see into the future.
We were looking for an innovative a seasoned executive with the leadership skills and vision to unlock and see I'm full value potential.
It was the board believes that this potential could only be achieved by strengthening our position as the cinema industry leader and a stronger player in the overall video industry.
After a very extensive search and interview process in which the board met with many candidates we realized that our own chairman Thomas Penske had the best combination of a deep understanding of our business a strong working relationship with our founding member circuits.
And the wide ranging industry expertise necessary to lead and Seattle.
As a longtime director who spent the last year as chairman Tom brings about continuity and the unique first hand understanding of the value of our core business. Tom also brings the energy and experience needed to drive product innovation to keep improving and CMS competitive position in the ever changing media landscape well with his experience with NCM and a number of large and small and media companies has given Tom a deep appreciation for our strong management team and staff and NCM is high quality unique media assets as well as an understanding of the need to innovate to continue to grow the business.
Tom has also proven that he has a talent for listening to all M.C.M. stakeholders, including our public stockholders exhibitor partners advertising clients and NCM team members, and making smart tactical and longer term strategic decisions that are best for all concerned as I mentioned, Tom as a highly accomplished executive with a career spanning the entertainment digital media sales marketing and advertising industries.
He was first appointed as director of NCM <unk> in December 2014, and served as chairman of the board and see I mean since August 2018.
Since 2015. He also served as CEO of Sun Our entertainment.
A leading independent TV production company after serving as its lead board director since 2013. His extensive 25. Your Hollywood Korea also includes prior leadership roles as CEO and founder of Energy Entertainment multimedia content production company President of Paramount Pictures Digital Entertainment and President of worldwide home Entertainment for Panamax and post executive Vice President and General manager of home Entertainment and Executive Vice President worldwide marketing and development at Warner Brothers. He began his career in advertising working at industry leader as BBD Foote cone in building and Procter and Gamble's Clairol, Inc.
I'm now pleased to introduce Tom for the first time at NCM, New CEO Tom.
Thank you Mark for that kind introduction and welcome everyone.
It's great to be here speaking to you for the first time in my new role as CEO .
Before I get started I'd like to take a minute to thank cliff marks congrats works tirelessly and closely with me and the rest of the NCM team over the past several months as our interim CEO .
Chris has done an excellent job, while continuing to spearhead our media sales strategy call on clients and otherwise you manage our overall media sales team.
I was and I am very fortunate to have such a seasoned executive with deep experience within both NCM and the advertising industry as my partner.
And I'm grateful that Cliff will continue to play a crucial role for our company as he returns to his day to day media sales responsibilities as our president to continue to drive advertising sales growth.
Thank you cliff for everything that you do for the company, including fulfilling two critical roles over these last several months.
[noise] to the hard work of cliffs and the rest of the NCM team over the last several months and with the support of our founding member partners I believe now more than ever that NCM is poised to deliver on our promise to shareholders of providing a growth stock with a unique combination of high tax deferred cash returns and capital appreciation for public stockholders.
The combination of the largest cinema network in the U.S. and the evolution and improvement of our core advertising product to our expanding digital strategy will allow us to deliver a unique product that connects brands to desirable young cord cutting movie goers throughout their entire online and in theater experience.
I look forward to come close to completing this unique advertising product vision.
And that will accelerate NCM is growth.
And increase the value for our stockholders employees exhibitor partners and advertising clients alike.
With that I'd like to provide a few observations and highlights of our second quarter 2019 operating results before Kt provides more detail about our results and guidance and then as always we will take questions.
Well, we spoken to Q1 earnings call. We said that we expected the second half of the year to be stronger than the first half due primarily to year over year film release timing.
That remains the case as a strong start to Q3 and solid pacing. So far for Q4 has the second half trending ahead of last year.
Even though the second quarter started out strong with your vendors June ended up softer than we had expected.
Consistent with Q1, we experienced strong national sales demand in Q2 that fell slightly short of prior year revenue and adjusted EBITDA because of lower industry attendance that resulted in higher quarter and make goods. Our Q2 revenue was generally in line with our expectations.
Except for the higher acute you made good.
The started Q3 has been strong with a record July opening for the Lion King and while it is still early in the quarter revenue is pacing ahead of last year.
[noise], our national advertising sales team continued to experience strong demand from marketers in Q2.
Driven by a good mix of existing and new advertisers in categories, including hotels and resorts apparel footwear assessor is internet sites auto parts and services and video games.
Q2 National revenue was only 1.2 million lower than prior year quarter. Accordingly, we have exceeded last year's strong second quarter National performance had not been Andrew.
Excuse me second quarter Nash more its head results not the diversity impacted by the softer late Q2 film mix, which resulted in a 3.2 million higher Q2 ending make good.
So far in 2019, we have seen national clients trend toward spending less and scatter the committing more dollars upfront our national sales team has done a great job of capitalizing on the strong TV upfront marketplace and convincing brands to ship spending away from TV and other media platforms.
Although sterling we're still early in the process our upfront commitments for 2019 2020 have so far been strong as our national sales team has successfully sold advertisers on the value of cinema versus TV and other video media platforms.
[noise], while our national sales strategy continues to be successful we are always looking for new ways to provide a more effective targeted product for advertisers that will result in higher sell through higher cpms and ultimately higher revenue growth.
In July .
We launched our NCM luxton that network to connect luxury brands with our more affluent movie audiences.
NCM Lux net is carefully selected subset of 130 NCM network theaters spanning the country in the top 25 dnase that have a higher household income index. In most cases. These theatres feature state of the art honorariums luxury seating and expanded amenities, including bar and dining options.
In many cases. These theaters also had the movie slate that is consistent with the higher income market areas ranging from the best independent and Oscar nominated tunnels to Hollywood's biggest blockbusters.
And the growing luxury goods market brands are now charging a rising junger consumer class known as Henry's which stands for high earners, not yet rich the new NCM Lux that is specifically designed to reach these henry's giving upscale brands the premier advertising medium to connect with our most affluent movie goers.
[noise] Q2 regional revenue decreased 18.3% versus prior year as we've continued to see some reallocation in spending from some of our larger regional clients, including autos over to national.
While this shift has helped our national business as is often accompanied by an increase in the dollar value spent by those clients. Our regional sales focus has shifted to increasing the number of client relationships a number of buyers in the spot market versus versus focusing on large brands that by occasionally.
While this change in regional sales focus makes for a headwind in the short run it will allow for more consistency in our regional revenue trends and ultimately a recurring growth trend as we establish an increasingly diverse base of client relationships.
[noise], our local revenue started to show progress in Q2.
As local revenue was down a little over 2% from prior year due to lower contract volume and slightly lower value per contract I'm very pleased to note that this somewhat better local performance was driven by the bundling of our digital inventory into the local offering.
The addition of a digital extension for our local clients appears to be a major driver in attracting local businesses, who are actively looking to enhance the reach of their on screen campaigns, both online and on mobile devices through our cinema accelerator product.
This improvement of our local product definition as just one example of how our digital strategy and the growth of our newly digital ecosystem continues to help us enhance our core on screen business. It allows us to attract advertisers who want to reach our young engaged and valuable movie audiences in an innovative new ways with multiple digital and in theater touch points.
Disney continued to be a digital cinema advertising innovator in Q2, working with US on the first studio collaboration for creating our new newly shuffle movie trivia mobile game based on the entire Pixar feature film Universe as a fund part of the marketing campaign for Dixie for Disney and Pixar film Toy story four.
We're also excited to be premiering this Friday, our very first custom branded and sponsored newbie big screen augmented reality game for Tyson foods called ballpark Hotdog Derby. The brand was looking for a unique air activation for their campaign and then never went into the mobile for so it was our NCM digital business MTN digital capabilities, that's helped us with this on screen business.
These drilling a few of the examples of our digital strategy is reshaping our core product definition.
Over the last 12 month period, we had an 8.4% increase in the number of customers, who had a digital component integrated into their contract.
Also on a trailing 12 month basis over 43% of our national and 32% of our local and regional AD revenue had an integrated digital component.
Based on our drilling success in our digital strategy, we're going to continue to invest in various digital products and properties to drive a higher level of audience engagement with our newly pre show whatever movie audiences are.
In theaters on their phones on their computers on social media.
This not only gives us more digital inventory to package with our core in theater inventory. It also allows us to capture exclusive and valuable first party movie audience data that will help us deliver the kind of enhanced targeting and ROI that advertisers demand in today's increasingly integrated media landscape.
Looking ahead.
As I mentioned earlier I'm very optimistic about NCM is future business prospects.
The movie slate for the rest of your looks strong for several proven tent pole movies are newly digital products are resonating with both brands and consumers and we have the support of our exit exhibitor partners.
I am pleased that cinemark and Regal have been more engaged than ever since we increased our investment in NCM last year.
Although the first half box office was down 9% from last year. It's important to realize that Q2 2019 was the second highest Q2 box office in history next to Q2 last year, which followed a record Q1 of 2018 illustrating that cinema continues to thrive as demonstrated by the strong opening of the Lion King there was a lot of excitement about the many tent pole franchise films.
Set to release later this summer.
And for the remainder of the year, including the fast and furious hubs in Shaw it to frozen too and of course Star Wars episode nine.
These films along with several upcoming releases are expected to drive a strong finish for the 2019 box office as I mentioned the upfront AD market has been strong.
And we're seeing healthy demand from advertisers as we head into the key back to school and holiday seasons.
As brands continue to be sentiment and our digital offerings as a powerful captive environment to reach settlements valuable young engaged audiences.
I will now turn the call over to Katie to give you more details about our Q2 29 operating performance and to reaffirm our 2019 guidance estimates Katy.
Thanks, Tom I'll walk through the operating results the Tom highlighted in further detail discuss our thoughts on the quarter as well as our full year outlook. Then we'll open the call to your questions.
We will be providing a supplemental presentation that these results on our website for future reference.
For the second quarter, our total revenue was $110.2 million compared to $113.7 million in Q2, 2018, a decrease of 3.1%.
The $3.5 million change was driven by a $1.2 million decrease in national advertising revenue $1.5 million decrease in original revenue a $400000 decrease in local revenue and a $400000 decrease in beverage revenue.
Total Q2, adjusted OIBDA was $50.2 million, a decrease of $2.1 million or 4% versus Q2 2018.
The adjusted OIBDA margin for the quarter was 45.6% compared to 46% during the same period last year, primarily due to a decrease in revenue, partially offset by $1 million and lower operating expenses driven by a decrease in legal and professional fees, which were incurred last year related to the negotiation of a settlement agreement with our largest stockholder.
Our theater access fees were flat compared to last year. When we had a decreasing attendants portion of the fees related to lower box office attendance compared to a year ago, which were offset by an increase in digital screen fees, which increased 5% annually.
The Q2 and year to date decrease in National revenue was driven by a weaker scatter market compared to a strong scatter market last year. In addition, as Tom mentioned earlier the weaker than expected June box office attendance contributed to a record second quarter may good bye ending balance of $5.7 million compared to $2.5 million a year ago, a swing of $3.2 million as at quarter end and compared to a $4.7 million Q1 2019, ending may go ahead.
For the second quarter 2019 National AD revenue was $77.6 million, a 1.2 million or 1.5% decrease versus Q2 2018.
The change was driven by a $3.2 million increase in the quarter end make good balance a 10.4% decrease in cpms, partially offset by a 4.3% increase in impressions sold and higher branded content revenue.
The increase in impressions sold was driven by a 9.3% increase in inventory utilization to 110.8% from 101.5% in Q2 2018, as we delivered impressions from the quarter first quarter and make good balance during the quarter.
Partially offset by a 4.5% decrease in attendance versus prior year.
The decrease in CPM has driven by a shift to higher Q2, 2019 upfront spending versus higher scatter a year ago.
Also recall recall last quarter, we had some high CPM upfront clients run campaigns, resulting in almost a 10% CPM increase in Q1.
Looking forward, we expect cpms to normalize resulting in low single digit growth in 2019.
Q2 regional AD revenue decreased 18.3% or $1.5 million from $8.2 million to $6.7 million versus the second quarter of 2018 and was primarily due to a $1 million shift in spend within the automotive category as one client shifted their spending from regional advertising to national advertising.
That said Q3 is trending up year over year, and we expect to regional revenue to bounce back in the second half of 2019 as our shift in sales strategy. Tom mentioned earlier is gaining traction.
Q2, local AD revenue slightly decreased 2.2% or $400000 from $18.1 million to $17.7 million compared to last year.
The decrease in local advertising revenue was due to a 7.7% decrease in the volume of local contract and a 2.1% decrease in average contract value.
This was partially offset by strength in our local digital sales revenue that Tom mentioned earlier.
Q2 beverage revenue decreased 4.7% or $400000 from $8.6 million to $8.2 million versus Q2, 2018, driven by a decrease in founding member attendance, partially offset by a slight increase in beverage cpms year over year.
Our Q2 2019 advertising revenue mix was 71% national 6% regional 16% local and 7% beverage versus Q2, 2018 that was 69%, 7%, 16% and 8% respectively.
For the first six months of 2019, total revenue decreased 3.5% or $6.8 million to $187.1 million from $193.9 million in the first six months of 2018.
Adjusted OIBDA decreased $3.3 million or 4.4% to $72.3 million from $75.6 million in the first six months of 2018, and adjusted OIBDA margin decreased to 38.6% from 39% versus the first six months of 2018.
For the first six months of 2019 National AD revenue was $131.6 million, a $2 million or 1.5% decrease versus the first six months of 2018.
The decrease was driven by a 2.2% decrease in Cpms, a 1.4% decrease in impressions sold partially offset by an increase in branded content. The decrease in impressions sold was the result of an increasing utilization to 107.8% from 98.4% as we continued to deliver impression this year to satisfy the record 8 million dollar year end 2018 make good as well as from network attendance the decreased 10% versus the first six months of 2018.
As mentioned earlier on a year over year basis, we expect a stronger performance in the second half of this year for our national advertising business.
For the first six months of 2019 regional AD revenue decreased 16.5% or $2 million from 12.1 million to $10.1 million versus the first half of 2018.
Half of this decrease is driven by the shift from regional advertising to national advertising by a major automotive client.
As our new regional sales strategy begins to take hold we expect a stronger second half of 2019, resulting in a year over year increase in our regional ad business.
For the six months of 2019, local AD revenue decreased to 3.5% or $1.1 million from 31.6 million to $30.5 million compared to last year. The decrease in advertising revenue was due to a 10.2% decrease in the volume of local contract, partially offset by 2.3% increase in average contract value combined with the higher local digital sales revenue.
For the first six months of 2019 beverage revenue decreased 10.2% $1.7 million and $16.6 million to $14.9 million versus the first six months of 2018 and was driven by a 9.6% decrease in founding member attendance, partially offset by a slight increase in beverage cpms.
For the second quarter, we reported GAAP diluted earnings per share of 11 cents versus earnings per diluted share of five cents in Q2 2018.
For the six months of 2019, we reported GAAP diluted earnings per share of 10 cents compared to earnings per diluted share of three cents in the first six months of 2018.
The increase in EPS were related to lower tax expense in 2019 compared to 2018.
In 2018, we recorded deferred tax expense related to revaluing deferred tax assets from decreases in state income tax rate.
For the first six months of 2019 capital expenditures were $6.9 million versus $7.2 million spent in 2018, driven by the relocation of our corporate headquarters in 2018, partially offset by increased investments in our digital infrastructure.
We are estimating that our full year 2019 capital expenditures will be in the $15 million to $16 million range or approximately 3% of revenue, including $7 million to $8 million of digital investment.
In the second quarter and for the first six months of 2019, we recorded $5.7 million or $8.1 million, respectively of integration and other encumbered theater payments from Ciena, Mark and AMC associated with rave theaters, and carmike theatres versus 5.6 million and $7.8 million last year.
As a reminder, note that these integration and other encumbered theater payments are added to adjusted EBITDA for our debt for debt compliance and partnership cash distribution purposes, but are not included in reported revenue or adjusted OIBDA as they are recorded as a reduction to net intangible assets on the balance sheet.
We expect to record approximately $21 million to $23 million of integration payments from our founding members during 2019.
It should be noted that these integration payments for AMC Carmike theatres will continue through the life of the essay our Q2 037.
Moving onto your our balance sheet, our total debt outstanding at NCM LLC at the end of Q2, 2019 was $925 million versus $950 million at the end of Q2 2018.
Our revolver balance at the end of the second quarter 2019 was $27 million compared to $30 million at the end of Q2 2018.
Our average interest rate on all that was approximately 5.8% at the end of Q2 compared to 5.6% in Q2 2018, including our $268 million floating rate term loan bank debt and revolving credit facility that had a rate of approximately 5.4%.
Excluding revolver balances, 68% of our total debt outstanding at the end of Q2 2019 had a fixed interest rate.
By way of reminder, under our charter, we can pay down up to $15 million of our debt annually without founding member and board approval.
For the six months 2019, we have retired $5 million of our 2026 senior unsecured bonds.
$4.6 million, we are going to continue to evaluate this discretionary use of cash based on future expected leverage level LLC investment opportunities and our public company dividend policy.
Our total net leverage to NCM LLC as of the end of Q2 2019 was approximately 4.2 times trailing four quarter adjusted OIBDA, which is well below our consolidated net total leverage maintenance covenant of 6.25 times.
Our consolidated net senior secured leverage ratio was 3.1 times versus a covenant of 4.5 times.
Our consolidated cash and investment balances as of Q2, 2019 was $62 million with $57 million of this balance at NCM I.
We currently have enough net cash available to cover over four quarters of dividends at NCM eyes with approximately 75% 75 cents per share cash on hand at the end of Q2 2019.
We announced today that the board of directors has authorized the company's regular quarterly cash dividend of 17 cents per common share of stock the dividend will be paid on August thirtyth 2019 to stockholders of record on August 15th 2019.
The dividend level is determined based on our plans to invest in the business, while providing financial flexibility in a sustainable dividend for our stock for our stockholders.
The company intends to pay a regular quarterly dividend for the foreseeable future at the discretion of the part of directors consistent with the company's intention to distribute over time, a substantial portion of its free cash flow.
The declaration payment timing amount of future dividends will be at the sole discretion of the board of directors will consider general economic and advertising market business conditions, the company's financial condition available cash current and anticipated cash needs and any other factors the board of directors considers relevant.
Our annual tax deferred dividend yield is currently 9.8% based on today's closing share price of $6.92.
Now turning to guidance.
As we noted earlier, we have a strong film slate that we are excited about in the back half of the year as well as easier quarterly comparisons.
In addition, Q3 sales are trending ahead of last year.
We are reiterating our revenue guidance of up 1.9% up 5.3% versus 2018 or in the range of 450 million to $465 million and adjusted OIBDA guidance up 0.8% to up 5.6% or in the range of $270 to $217 million.
Looking ahead at NCM LLC as available cash calculation for 2019, starting with our adjusted EBITDA guidance of 270 $217 million, you'll add the following is the delta available cash.
One integration payments of $21 million to $23 million and two cash payments from fab a note receivable of $5.7 million. Now. This is the last year, we will receive payment for this note receivable.
As a reduction to available cash we will subtract the following.
One cash interest expense of approximately $53 million to $54 million to annual scheduled debt principal amortization of $2.7 million plus any potential additional debt repurchases up to 15 million annually of which we have already purchased $5 million.
Capital expenditures of $15 million to $16 million and for noncash comp for Inc. employees of approximately two and a half to $3 million.
These are the components that will allow you to arrive at a projection for available cash at NCM LLC at the end of 2019, which is paid to the four founding members of the partnerships are the four members of the partnership Regal cinema oral Finmark AMC and NCM high on a quarterly basis based on their ownership at the end of the quarter.
In addition to the available cash distributed to NCM from NCM LLC and consistent with prior years, we project approximately 5 million to be paid to NCM I from NCM LLC for management fees was $1 million of interest earned on NCM I cash balances reduced by the expected payout of $15 million to $16 million for payments under the tax receivable agreement to our founding member.
This will allow you to arrive at net cash available to fund current annual dividend payments with a payout at the midpoint of that guidance of approximately 82%.
This concludes our prepared remarks, and we'll now open the line for questions.
Operator.
Thank you at this time, we will be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad a confirmation so.
In the question queue.
You May proceed Sir if you would like to move your questions in the queue for participants using speaker equipment. It may be necessary to pick up your handset before personal Starkey one moment. Please while we poll for questions.
Our first question comes from the line of Jim Goss with Barrington Research. Please proceed with your question.
Good afternoon.
I'm wondering first you had mentioned early on about an expectation for more scatter and less up front I assume that will cut the make goods issued.
Down somewhat is that a correct assumption.
Yes make it is really a function of of attendance. Our demand obviously has been there even in the first couple of quarters, but the attendance just wasn't there to be able to deliver on that so as we move throughout the year and hopefully these things they attendance from these upcoming the upcoming film slate.
Hopefully meet or beat the expectations, so that will help us deliver on the outstanding Mega balances.
Okay, and I was wondering to the newbie Pixar.
Custom augmented reality you mentioned.
Are you are you.
In any of the effort you are having or maybe it's premature yet are you drawing viewers earlier as you're hoping and I'm wondering what sort of impact there might be.
Or are you expecting.
On the pricing demands.
And this is helping local and regional ads in addition national.
Yes, I have cliff marks our president.
Respond to your questions specifically.
Okay. So yes, we've just really started the Newbuild program, we are measuring to see if it's going to get people be earlier, but thats clearly our intent is to help people, they're putting games. So I can't really answer that question, yet, but we are doing that research.
Locally our local AD sales team are not selling augmented reality programs, but it's primarily being sold by our national team. So, but we know that digital. This is Tom we know that digital has been a useful tool for the local and regional sales forces and has contributed to some of the growth we've seen come back and local business yes.
Very strong sales theres little bit not the augmented reality Burke.
Locally.
And maybe lastly for now.
Im wondering if theres any linking of.
Digital ads to the attendees following the movies.
And does the relationship with the founding members loyalty program identification facilitate such a notion where you might be able to follow sending them a push to add or is that sort of thing that might tie into the AD sales yes.
Great.
We actually have a really clever product called cinema accelerator, our cinema accelerator product is a retargeting product by design exactly as you noted.
And when people come into our theater, we're actually April .
Two.
To Chuck I phone and able to follow them, where when they leave on an opt in basis of course, we are able to follow him. So if a person leaves our theater and goes to a Walmart or goes through a mcdonalds, we can actually measure that.
Yes, so the way.
Yep.
The way the way we monetize it is we actually will sell brands and as Tom noted about 40% of our national advertisers about 30% of our regional advertisers actually do this though actually by schedule on screen and Dave and Dave.
They know they've they've reached to someone with their spot on screen and did we target that same person over the next seven days in various places that that person will be at whether it be at a restaurant or whether it be in a big box store, whether the at home on the couch, we actually re target them in seven days, but by actually going in and buying ads on sites that they use.
That makes sense.
Yes, it does.
Okay. Thanks very much.
Youre welcome.
Tim.
Once again, if you would like to ask a question. Please press star one on your telephone keypad. Once again, if you would like to ask a question. Please press star one on your telephone keypad.
He is known as we poll for questions.
Okay.
If there are no further questions left in the queue I would like to turn the call back over to Mr., Tom Lozinski for any closing remarks.
[noise] I'm proud to have the opportunity to lead NCM and its talented and hardworking management team and staff into the future with the leadership and board changes now behind Us I'm optimistic about the growth and stock price appreciation potential of our business, we're experiencing great demand from our advertisers. Our audiences are excited about the future movie slate.
And we have the strong support of our exhibitor partners.
I will look forward to working very closely with our NCM management team, our exhibitors Mark and the rest of our board and our NCM team to continue to drive our strategic vision and leverage our unique position in the media marketplace as the leading company connecting brands to highly desirable movie audiences throughout their entire movie going experience.
As Mark started this call I'll, let him wrap it up as well.
Thanks, Tom, but there's not much more for me to say I know that I speak for our entire board in saying that we are excited about the prospects of the company and your leadership and we stand ready to support you in the company mission in any way that we can thanks for joining us today and for all your patience and support as we work through our board and leadership changes.
This concludes today's teleconference. You may now disconnect. Your lines at this time. Thank you for your participation and have a wonderful day.