Good morning, ladies and gentlemen, and welcome to the Hemisphere Media Group Incorporated's first quarter 2021 financial results conference call. My name is Jason. I will be your operator today. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star zero. I will now turn the call over to Danielle O'Brien. Please go ahead. Thank you, operator, and good morning, everyone. I'd like to welcome everyone to today's conference call. I'm Danielle O'Brien, and I'm with Edelman Smithfield, Hemisphere's outside investor relations firm. Today's announcement and our comments may contain certain statements about Hemisphere that are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations of the management of Hemisphere and are subject to uncertainty and changes in circumstance, which may cause actual results to differ materially from those expressed or implied in such forward-looking statements. In addition, these statements are based on a number of assumptions that are subject to change. Please refer to our company's most recent annual report on Form 10-K and our other public filings for a more complete discussion of forward-looking statements and the risk factors applicable to our company. Forward-looking statements included herein are made as of the date hereof, and Hemisphere undertakes no obligation to update publicly such statements to reflect subsequent events or circumstances. During today's call, in addition to discussing results that are calculated in accordance with generally accepted accounting principles, we will refer to adjusted EBITDA, which is a Non-GAAP financial measure. A reconciliation of GAAP to Non-GAAP information is included in our earnings release, which was issued earlier this morning. Management believes that this Non-GAAP information is important to investors' understanding of our business. I'll now turn the call over to Alan. Thank you, Danielle. Good morning, everyone. We delivered yet another exceptional quarter of results, reflective of the differentiated nature of our business and our continued strong execution, further bolstered by the overall economic recovery. Following our industry-leading performance in the third and fourth quarters of 2020, our strong momentum continued into the first quarter of 2021. We grew net revenues by 16%, led by an outstanding quarter of advertising revenue growth of 35%. This top-line growth drove a 37% increase in adjusted EBITDA in the quarter. Beyond our exceptional results, last month, we announced the acquisition of Pantaya, which we believe will accelerate the growth profile of our business. Since we formed Pantaya in partnership with Lionsgate, it has quickly become the go-to Spanish language subscription streaming service, amassing approximately 900,000 subscribers, and we have just begun to scratch the surface of the addressable market. In three short years since its launch, it's become clear that Pantaya sits at the sweet spot of the large, fast-growing, and underserved U.S. Hispanic market. The metrics are incredibly compelling. There are 60 million Hispanics in the U.S. today, estimated to grow to 75 million by 2030. Of the 60 million, 39 million fall into our core target of bicultural and Spanish-dominant adults, a huge subscriber acquisition opportunity. Nearly 90% of these 39 million are already accessing at least one streaming service, demonstrating the strong appetite for streaming. Pantaya has an unparalleled deep library of critically acclaimed original titles from Pantaya's production arm, Pantelion, as well as from world-class third-party content producers such as Televisa, Sony, and Lionsgate. While some of the large general market streaming platforms offer a small sampling of Spanish language content, none of them come close to competing with the depth, quality, or popular appeal of Pantaya's offering. As we have previously stated, we intend to meaningfully increase investment in content. We're very excited by our upcoming content pipeline, especially as production has broadly resumed. In two weeks, we will be releasing the second season of our hit reality series, "Derbez Family Vacation," which was a massive success in its first season in 2019. This will be followed by a very strong release schedule for the second half of the year, including season two of Pantaya's most successful series to date, "El Juego de las Llaves." While the business itself is incredibly exciting, there are many compelling opportunities created by the combination of Pantaya and Hemisphere, including the ability to leverage our content production capabilities, deep library, promotional platforms, and distributor relationships. We are already in negotiations with various connected TV platforms and virtual MVPDs about adding Pantaya. The goal is to attain 2.5 million-3 million subscribers by 2025, and we are confident we can achieve that objective. Turning to Puerto Rico, business trends and consumer activity continue to improve, building upon the momentum seen in the second half of 2020, as many of the COVID-related restrictions that were in place have been rescinded. Employment levels have improved. New auto sales are near historical highs. Cement sales are at their highest level since 2016, and hotel booking rates are above 2019 levels, which was a record year. The recent census reported Puerto Rico's population at 3.3 million, slightly higher than expected and a strong indication that outward migration has abated. In April, the Biden administration announced the release of an additional $8 billion in Hurricane Maria funding that had been previously withheld. Puerto Rico still has tens of billions of hurricane recovery funds that have yet to be dispersed, which we expect will start flowing at a faster pace. We are more optimistic about Puerto Rico's economic future than we have been in many years. With our leading market position, we are well positioned to benefit from an improved economy. We saw another outstanding quarter of revenue growth at WAPA. This period represented the highest first quarter in WAPA's history in both ad revenue and market share. As a result of improved economic conditions, the overall TV ad market grew an extraordinary 35% in the first quarter. Once again, WAPA outperformed the overall market. WAPA's retransmission fee revenue also increased substantially as new renewals became effective on January 1st. At the same time, subscriber levels have remained very stable in Puerto Rico. Turning to our U.S. cable channels. Notwithstanding the challenging distribution environment, our performance was strong and our channels continue to cement their leading positions in the marketplace. We delivered solid advertising revenue growth across our cable networks. Additionally, we executed a renewal with Cox Communications for all our cable channels, including expanded carriage for three of our networks, which will result in full national distribution of four of our five networks by July, another testament to the singular value of our channels. We are also currently in advanced discussions with a major virtual MVPD and are optimistic that we will secure distribution this year. We continue to see a contraction in U.S. subscriber levels in Q1, although at a more modest rate than the year ago period. We are optimistic that we will be able to continue to mitigate organic subscriber declines with new virtual MVPD launches as they develop Spanish language offerings and expanded carriage with existing distributors such as Cox. All of our cable networks continue to perform well and deliver strong viewing. Based on coverage ratings, all four of our measured channels are among the top 15 rated Spanish cable channels, with three of the four in the top 10 Monday to Friday. We are especially proud that Pasiones is the second highest rated cable channel Monday to Friday. Turning to Colombia and our investment in Canal Uno, the market remains challenged by the pandemic, with a significant fourth wave of cases and low rates of vaccination to date. Nonetheless, Canal Uno had a solid first quarter with advertising revenue growth despite widespread lockdowns in January. We believe that there's a high level of pent-up advertising demand that will be realized once case levels decline. In closing, we are thrilled to have continued our strong momentum into 2021. We continue to drive robust, industry-leading growth in the face of challenging market conditions. With Pantaya, we immediately become the market leader in the high growth, Spanish language subscription streaming space and have transformed the growth profile of our overall business. We are very excited about the future of Hemisphere. Thank you everyone. I'll now turn the call over to Craig. Thank you, Alan, and good morning everyone. We are excited to have continued our strong momentum into 2021. Please note that our operating results for the first quarter do not include Pantaya, as we closed the acquisition on March 31st. Net revenues for the first quarter were $37.6 million, an increase of 16% as compared to $32.4 million for the prior year period, with growth in all of our revenue streams. Advertising revenue for the first quarter increased $4.1 million or 35% as compared to the prior year period, primarily due to growth in the Puerto Rico television advertising market, coupled with an increase in WAPA's share of the market, as well as an increase in advertising revenue at our U.S. cable networks. Subscriber revenue for the first quarter increased 1% as compared to the prior year period due to contractual rate increases offset by decline in subscribers to our cable networks. Other revenue increased $1 million, driven primarily by the timing of the licensing of content. Operating expenses for the first quarter were $32.5 million, an increase of 15% as compared to $28.3 million for the prior year period. The increase was primarily due to professional fees and financing costs incurred in connection with the acquisition of Pantaya. Excluding fees and expenses related to our strategic and financing activities, operating expenses increased 2% in the first quarter of 2021 due to higher programming and production costs and higher third-party agency commissions driven by an increase in advertising revenue, offset in part by lower bad debt reserves and lower depreciation and amortization expense. As a result of our strong top-line growth, adjusted EBITDA in the first quarter was $15.7 million, an increase of 37% as compared to $11.5 million for the prior year period. Turning to the balance sheet, as of March 31st, we had approximately $194 million of cash, which includes the $124 million for the purchase of Pantaya paid on April 1st. We had approximately $254 million in debt, which includes a $50 million add-on to our amended term loan. Our gross leverage ratio was approximately 3.8x, and net leverage ratio, pro forma for the cash paid in the acquisition of Pantaya, was 2.7x. During the first quarter, the company repurchased approximately 127,000 shares of Class A common stock at a weighted average price of $10.37 for an aggregate purchase price of approximately $1.3 million. Capital expenditures were $2.4 million in the quarter, reflecting certain projects that were deferred from 2020 and consistent with our plan for the year. We also funded $900,000 into Canal Uno as the channel prudently manages its cash flow needs. We are very excited about our strong start to the year, reporting our third consecutive quarter of impressive growth, and we look forward to continuing to deliver value for all of our stakeholders. We'll now open the call to your questions. Your first question comes from the line of Steven Cahall from Wells Fargo. Your line is open. Thanks. On the content strategy and content spend, maybe you could give us an update of what the content spend looks like today, and maybe what plans are as to where you might like to take it. I think that you mentioned Televisa is one of your partners. I know they're also launching a service with Univision. Just wondering if you think there's going to be a lot of competition for content or if there's plenty out there for everybody. With that competitor service, do you see that as just growing the market overall, or do you see that as more of a competitive threat? Also on Pantaya, just wondering if you're contemplating any distribution partnerships like with telco companies or MVPDs. I'll have a couple of follow-ups. Thanks, Steven. Let me try to get to all your questions. If I miss any of them, just let me know and I'll follow up. I know there was a lot in there. First of all, on Pantaya's strategy and our programs. We don't get into specific dollar numbers. As I've said, our core strategy is to increase materially the programming spend on Pantaya. We're already in the process of doing that. We think that the content of Pantaya historically has been great, but we also feel there's opportunity to accelerate growth in subscribers and to improve retention by increasing programming spend, and that's our intention. I also think it's important to note, as I've stated before, that our programming cost model is significantly different than that of the big general market players who are in this giant programming arms race. We kind of swim in a different lane where our programming costs are much more modest than those of the big general market guys, so we get a lot more bang for our buck. We also have the advantage of being able to use our entire ecosystem for all of our programs. All the programming that's on Pantaya ultimately make its way through all of our other channels and platforms. Similarly, programming that we create for our platforms, much of that will make its way through Pantaya as well. We've created this virtual cycle of using Pantaya and our existing channels and platforms. Relating to Televisa, we have a great relationship with Televisa. We have a multi-year agreement in place with Televisa, which actually is very mutually beneficial because not only do we have access to Televisa's theatrical films, but Televisa also has access to Pantelion's production for their own theatrical use in Mexico. It's a mutually beneficial arrangement that I know Televisa values very much, and we have a multi-year contract, so we don't expect any interruption in that. We also have, as I've noted, exclusive output arrangements with the most important and most prolific film producers in Mexico, which is core to our programming supply. On the distribution front, we are in discussions at various levels with a number of different telcos, vMVPDs, and connected TV producers for carriage. We think that there is a good chance that we could make a strategic deal with a telco, it's a little early. We are in the process of working those, and that's a priority for us. I think it's also important to note that just generally speaking, we have a big first-mover advantage with Pantaya. We are the only real player in the exclusive Spanish language premium subscription space. We think Univision's new entry in PrendeTV is going to be a formidable player in this space. We also think that we complement each other in the sense that they are primarily a library service focused on the Televisa and Univision libraries. All that content is very valuable and very important and has a big audience. We really ought to have a different offering. We are the only ones really offering original, exclusive, premium series and movies that really can't be seen anywhere else, and we're the exclusive home to those. Great. On the Puerto Rico side, it's an amazing level of ad growth that you're seeing. I think your share on WAPA-TV is already really high. I'm just wondering, with the economy there being as strong as it's been, at least since I followed the stock, how do you keep capturing more ad revenue? Can CPMs keep going higher? Do you have other levers you can pull to capture incremental demand? Help us think about that opportunity. Well, yeah. The market, especially for the last three quarters, has been as good as any other market in the world, I think. We have not only captured our share of that growth, but we have captured a disproportional share of that growth because of our positioning in the market, because of the fact that we are a must-have for advertisers in the market. We feel the market's strong, as strong as it's been, honestly, since we acquired this business in 2007. We feel more positive about the outlook for Puerto Rico than we have felt in a very long time. Puerto Rico has been in a constant state of economic headwind since we acquired the business, and this is the first time we really feel some sense of tailwind at our backs between the government stimulus, between the disbursement of previously allocated hurricane relief funding, and just the overall economic recovery. We feel great about where Puerto Rico is going. Again, hard to have a long-term crystal ball, but we feel very good about it now. The way we continue to take advantage of that is doing what we're doing, which is continuing to grow our audience, continuing to deliver great product for our viewers and for our advertisers, be creative in the way we can provide advertising and services for our clients. We have a great digital platform that is growing at a very strong rate. We have a great sports channel that is growing well, and we still have the ability on our main channel to grow rates and to increase the amount of commercial inventory available. Great. Last one for Craig. Craig, you mentioned the net leverage is 2.7x. Does that include maybe some EBITDA dilution from Pantaya? As we think about leverage going forward, as you invest in Pantaya, that's probably a bit of a drag, but you've got some organic EBITDA growth in the rest of the business, and a little bit of cash you'll be generating. How do we just maybe first think about the EBITDA trajectory of the company as those two things mix? Also, will you use your excess cash flow for debt reduction, or could we see a combination of debt reduction and some more share buybacks? Sure. At least to start the first one, Pantaya is not included in the EBITDA on an LTM basis for the calculation. The adjustment we made was to the cash balance. Got you. in our balance sheet of March 31st. That's the pro forma effect for Pantaya. As we indicated, Pantaya is going to be a bit of an EBITDA drag here. Naturally, the leverage will go up. You are correct that we'll still see growth in organic business and free cash flow generation. I think the primary allocation of our capital going forward will be to invest in our business. We've talked a lot about investment in content at Pantaya. That content, by the way, will serve not just Pantaya, but across all of our platforms. As we noted, we put a share buyback plan in place in November. That was active here in the first quarter. As we regularly do, we will continue to evaluate our capital allocation plans with our board going forward. Great. Your next question comes from the line of Kutgun Maral from RBC Capital Markets. Your line is open. Great. Good morning, and thank you for taking the questions. The Pantaya deal is fairly transformative. I was hoping to dig in a bit deeper. Maybe first on advertising. I know Pantaya has a great corner of the market as a commercial-free streaming destination. Now that you have full operational control, is there an appetite to maybe widen your potential target audience by introducing a lower priced ad-supported tier? Hey, Kutgun. This is Alan. It is absolutely something that we are looking at going forward. Right now our focus is on growing the core premium business. We have had a really surprising number of inbound inquiries from major advertisers about wanting to advertise on Pantaya. That's really opened their eyes up to the opportunity. Plus, we know the size of our audience and the potentially larger size, which you could have in a lower price kind of freemium business. It's something we're absolutely looking at going forward, although it's not in our plans for the immediate future. Understood. Thanks. Maybe when we think about your path to growing the Pantaya subscriber base from the 900,000 subscribers today to 2.5 million subscribers- 3 million subscribers in 2025, would you expect that growth to be somewhat linear and benefit from the broader secular trends that we're all seeing in the marketplace? Would you expect some of the distribution agreements that you're currently working on to maybe accelerate growth in the back half of this year? I think it's a little all of the above, and it's hard to know sort of how the mix shakes out. I think it's going to be functional of all that. I think the quality and quantity of content that we are developing and in production. I think as we expand our content offering and have more frequent content releases and higher quality content releases, I think that will accelerate subscriber acquisitions and also improve retention. We're expecting that growth will be robust for the foreseeable future. Understood. Thank you. Just, sorry, two more on Pantaya. Maybe just on the content side. I know with Steve, you talked about ramping programming investments. I guess I'm curious on how you're thinking about the evolution of your actual programming slate in terms of do you expect to invest more in TV versus film? Even across the two, are there any specific genres of focus? Maybe just over the long run, as you build out Pantaya's Pantelion and benefit from merger synergies like the shared production capabilities with the rest of Hemisphere, do you expect to de-emphasize some of these great third-party programming relationships that you have and maybe focus more on the original production side? Good questions. I think our lessons to date have been, I think that the original series that we have produced have driven the greatest subscriber acquisition and retention. They're really not widely available elsewhere in the market, certainly not anywhere on free or paid TV. Some of the general market players have some small number of premium Spanish language series, as I'm sure you know. It's really very sparse and haphazard offering. I think the intentional, purposeful offering of a clear series strategy with continuous series drops and predictable series drops, I think is core to our strategy of growing the business. We are going to continue to be in the big feature business because we also feel like that gives us a unique advantage in the marketplace and is the core of our relationships and our strategic ventures with our Mexican partners. It's high profile and gives us a lot of sizzle and the ability to generate pops in subscribers. We think that that's a valuable piece of the business as well. In terms of using the Hemisphere assets for third party, I think it's both. We don't look at it as either/or. We think having access and leveraging the Hemisphere platforms, Hemisphere production infrastructure capabilities, just gives us another very significant source of content and new production in addition to what we have. Frankly, we're expanding our third-party relationships as well. We will have some announcements coming forward in the near term about partnerships with other brand name third party players in Latin America and the rest of the world. That's perfect. Thanks, Alan. Maybe, sorry, just one last one. I'm not sure if you'd be willing to share this, but as you do grow the service from two and a half to 3 million subs, what do you expect the U.S. versus international mix might eventually look like? Well, today the service is just U.S. and Puerto Rico. When we say two and a half, three million, that's just U.S. and Puerto Rico. We obviously are considering expanding into Latin America, that would be a completely incremental subscriber opportunity to what we have today. Perfect. Thank you so much. That concludes our Q&A. I now turn it back over to Mr. Sokol for closing remarks. No further remarks. Thank you everybody for joining, and have a nice day. That concludes today's conference call. You may now disconnect.