Of course it is a takeover target. EVC's high growth Latino market offers a long-term trajectory no English focused media can match. Growth is very attractive. And at the current terribly low EVC valuation Univision is likely interested as EVC would greatly improve its balance sheet and cash flow prior to a rumored Univision IPO in 2014-2015.
Consider that EVC's financial position and outlook is so good that EVC was able to lock up debt at 3.5% for 7 years. That is far better than the terms that Univision is getting. At this point Univision already has a 10% ownership position in EVC. Univision could acquire the remaining 90% or Univision could raise $100M cash if EVC was acquired by a large English US media company looking for audience growth and a strong distribution partnership with Univision.
I don't expect much from the current quarter's earnings release. The cost of the old bond repurchase will distract from this quarter's numbers, but going forward earnings and cash flow will be very strong and there will be no debt distractions.
I think my most immediate point of interest on this call will be clues as to EVC's stance on a dividend. The past 2 years they have announced a dividend in late Nov or early Dec. The previous dividends seemed to generate a lot of confidence from the market. But this year EVC could take an investment approach which might be looked upon favorably as well, especially given the tax environment for dividends.