Grupo Radio Centro Reports First Quarter 2010 Results
MEXICO CITY, April 26 /PRNewswire-FirstCall/ -- Grupo Radio Centro, S.A.B. de C.V. (NYSE: RC, BMV: RCENTRO-A) (the "Company"), one of Mexico's leading radio broadcasting companies, announced today its results of operations for the quarter ended March 31, 2010. All figures were prepared in accordance with the Mexican Financial Reporting Standards ("MFRS") issued by the Mexican Board for Research and Development of Financial Information Standards.
First Quarter Results
Broadcasting revenue in the first quarter of 2010 was Ps. 166,281,000, 6.7% higher than Ps. 155,791,000 in the first quarter of 2009. This increase was attributable to broadcasting revenue from our radio station KXOS-FM in Los Angeles, California, which we began operating in the second quarter of 2009.
The Company's broadcasting expenses (excluding depreciation, amortization and corporate, general and administrative expenses) in the first quarter of 2010 totaled Ps. 160,783,000, a 43.4% increase compared to Ps. 112,150,000 in the first quarter of 2009. This increase was attributable to broadcasting expenses incurred in connection with KXOS-FM.
The Company's broadcasting income (i.e., broadcasting revenue minus broadcasting expenses, excluding depreciation, amortization and corporate, general and administrative expenses) in the first quarter of 2010 was Ps. 5,498,000, an 87.4% decrease compared to Ps. 43,641,000 in the first quarter of 2009. This decrease was attributable to the increase in broadcasting expenses as described above.
Depreciation and amortization expenses in the first quarter of 2010 were Ps. 6,144,000, a 6.1% decrease compared to Ps. 6,540,000 in the first quarter of 2009. This decrease was attributable to a reduction in the amount of depreciable assets.
The Company's corporate, general and administrative expenses in the first quarter of 2010 totaled Ps. 3,778,000, compared to Ps. 3,778,000 in the first quarter 2009.
For the first quarter of 2010 the Company reported an operating loss of Ps. 4,424,000, compared to an operating income of Ps. 33,323,000 in the first quarter of 2009, mainly due to the increase in broadcasting expenses as described above.
For the first quarter of 2010, other expenses, net, were of Ps. 13,455,000, an increase of 13.2% compared to Ps. 11,885,000 in the first quarter 2009. This increase was mainly due to fees paid to HSBC Mexico, S.A., as the common representative of the Company's CPO (ordinary participation certificates) holders.
The Company's comprehensive financing cost in the first quarter of 2010 increased to Ps. 7,360,000 from Ps. 1,072,000 in the first quarter of 2009. This increase was mainly attributable to the interest expense paid in the first quarter of 2010.
The Company reported a loss before income taxes in the first quarter of 2010 of Ps. 25,239,000, compared to income of Ps. 20,366,000 in the first quarter of 2009, primarily as a result of the increase in broadcasting expenses.
The Company recorded income taxes of Ps. 2,358,000 in the first quarter 2010, compared to Ps. 5,703,000 in the first quarter 2009 due to a decrease in taxable income.
As a result of the foregoing, the Company's net loss in the first quarter of 2010 was Ps. 27,597,000, compared to net income of Ps. 14,663,000 in the first quarter of 2009.
Recent Events
-- On March 18, 2010, the Company renegotiated the interest rate of the credit facility with Banco Inbursa, S.A. from a fixed annual rate of 13% to a fixed annual rate of 9.5%.
-- On March 16, 2010, in the Annual Stockholders Meeting, the shareholders approved, in accordance with the recommendation of the Company's Board of Directors, a dividend payment to all shareholders from retained earnings for fiscal year 2009 in the amount of Ps. 100,000,000, or approximately Ps. 0.6145 per each of the 162,724,561 Series A Shares outstanding. The dividend was paid in one disbursement on March 24, 2010.
Company Description
Grupo Radio Centro owns and/or operates 15 radio stations. Of these 15 radio stations, 12 are located in Mexico City, two AM stations in Guadalajara and Monterrey, and one FM station in Los Angeles. The Company's principal activities are the production and broadcasting of musical and entertainment programs, talk shows, news and special events programs. Revenue is primarily derived from the sale of commercial airtime. In addition to the Organizacion Radio Centro radio stations, the Company also operates Grupo RED radio stations and Organizacion Impulsora de Radio (OIR), a radio network that acts as the national sales representative for, and provides programming to, 108 Grupo Radio Centro-affiliated radio stations throughout Mexico.
Note on Forward Looking Statements
This release may contain projections or other forward-looking statements related to Grupo Radio Centro that involve risks and uncertainties. Readers are cautioned that these statements are only predictions and may differ materially from actual future results or events. Readers are referred to the documents filed by Grupo Radio Centro with the United States Securities and Exchange Commission, specifically the most recent filing on Form 20-F, which identifies important risk factors that could cause actual results to differ from those contained in the forward-looking statements. All forward-looking statements are based on information available to Grupo Radio Centro on the date hereof, and Grupo Radio Centro assumes no obligation to update such statements.
GRUPO RADIO CENTRO, S.A.B. DE C.V.
CONSOLIDATED UNAUDITED BALANCE SHEET
as of March 31, 2010 and 2009
(figures in thousands of Mexican pesos ("Ps.") and U.S. dollars
("U.S. $")(1))
March 31
2010 2009
U.S. $(1) Ps. Ps.
ASSETS
Current assets:
Cash and temporary investments 2,814 35,071 347,183
Accounts receivable:
Broadcasting, net 16,157 201,376 194,848
Other 678 8,446 8,008
Prepaid taxes 0 0 2,672
16,835 209,822 205,528
Prepaid expenses 8,886 110,754 34,391
Total current assets 28,535 355,647 587,102
Property and equipment, net 36,361 453,203 470,810
Prepaid expenses 292 3,636 0
Deferred charges, net 217 2,704 4,478
Excess of cost over book value of net
assets of subsidiaries, net 66,501 828,863 828,863
Other assets 269 3,353 3,325
Total assets 132,175 1,647,406 1,894,578
LIABILITIES
Current:
Short-term debt 3,257 40,591 30,433
Advances from customers 7,688 95,820 99,652
Suppliers and other accounts
payable 6,577 81,976 72,850
Taxes payable 2,799 34,891 6,022
Total current liabilities 20,321 253,278 208,957
Long-Term:
Long-term debt 9,628 120,000 170,000
Reserve for labor liabilities 5,401 67,312 61,862
Deferred taxes 174 2,166 6,309
Total liabilities 35,524 442,756 447,128
SHAREHOLDERS' EQUITY
Capital stock 90,694 1,130,410 1,130,410
Cumulative earnings 3,899 48,595 272,457
Reserve for repurchase of shares 3,517 43,837 43,837
Accumulated Effect by Conversion (1,484) (18,498) -
Majority shareholders' equity 96,626 1,204,344 1,446,704
Minority interest 25 306 746
Total shareholders' equity 96,651 1,204,650 1,447,450
Total liabilities and
shareholders' equity 132,175 1,647,406 1,894,578
(1) Peso amounts have been translated into U.S. dollars, solely for the convenience of the reader, at the rate of Ps. 12.464 per U.S. dollar, the rate on March 31, 2010.
GRUPO RADIO CENTRO, S.A.B. DE C.V.
CONSOLIDATED UNAUDITED STATEMENT OF INCOME
for the three-month periods ended March 31, 2010 and 2009
(figures in thousands of Mexican pesos ("Ps.") and U.S. dollars ("U.S.
$")(1), except per Share and per ADS amounts)
March 31
2010 2009
U.S.$ (1) Ps. Ps.
Broadcasting revenue (2) 13,341 166,281 155,791
Broadcasting expenses, excluding
depreciation,
amortization and corporate, general
and administrative expenses 12,900 160,783 112,150
Broadcasting income 441 5,498 43,641
Depreciation and amortization 493 6,144 6,540
Corporate, general and administrative
expenses 303 3,778 3,778
Operating (loss) income (355) (4,424) 33,323
Other expenses, net (1,080) (13,455) (11,885)
Comprehensive financing income (cost):
Interest expense (611) (7,620) (1,893)
Interest income (2) 1 9 32
Gain (loss) on foreign currency
exchange, net 20 251 789
(590) (7,360) (1,072)
(Loss) income before income taxes (2,025) (25,239) 20,366
Income taxes 189 2,358 5,703
Net (loss) income (2,214) (27,597) 14,663
Net (loss) income applicable to:
Majority interest (2,214) (27,600) 14,639
Minority interest 0 3 24
(2,214) (27,597) 14,663
Net income (loss) per Series A Share (3) 0.008 0.0992 0.8637
Net income (loss) per ADS (3) 0.072 0.8928 7.7733
Weighted average common shares
outstanding (000's) (3) 162,724 162,724
(1) Peso amounts have been translated into U.S. dollars, solely for the convenience of the reader, at the rate of Ps. 12.464 per U.S. dollar, the rate on March 31, 2010.
(2) Broadcasting revenue for a particular period includes (as a reclassification of interest income) interest earned on funds received by the Company pursuant to advance sales of commercial airtime to the extent that the underlying funds were earned by the Company during the period in question. Advances from advertisers are recognized as broadcasting revenue only when the corresponding commercial airtime has been transmitted. Interest earned and treated as broadcasting revenue for the first quarter of 2010 and 2009 was Ps. 920,000 and Ps. 1,348,000, respectively.
(3) Earnings per share calculations are made for the last twelve months as of the date of the income statement, as required by the Mexican Stock Exchange.
IR Contacts
In Mexico:
Pedro Beltran / Alfredo Azpeitia
Grupo Radio Centro, S.A.B. de C.V.
Tel: (5255) 5728-4800 Ext. 7018
[email protected]
In NY:
Maria Barona / Peter Majeski
i-advize Corporate Communications, Inc.
Tel: (212) 406-3690
[email protected]
SOURCE Grupo Radio Centro, S.A.B. de C.V.
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