First Quarter Results
Broadcasting revenue for the first quarter 2008 was Ps. 128,258,000, representing a slight decrease compared to the Ps. 128,534,000 reported in the same period of 2007. This decrease is attributable to lower advertising expenditures by the Company's clients during the first quarter 2008 compared to the first quarter 2007. This was a result of Holy Week taking place during the first quarter 2008, compared to 2007, when Holy Week fell during the second quarter.
The Company's broadcasting expenses (excluding depreciation, amortization and corporate, general and administrative expenses) for the first quarter 2008 totaled Ps. 103,981,000, a 5.4% decrease compared to the Ps. 109,969,000 reported in the first quarter 2007. This decrease was primarily attributable to lower sales commissions as well as lower advertising and promotion expenses during the first quarter 2008 compared to the first quarter 2007.
For the first quarter 2008, the Company reported broadcasting income (i.e., broadcasting revenue minus broadcasting expenses, excluding depreciation, amortization and corporate, general and administrative expenses) of Ps. 24,277,000, a 30.8% increase compared to the Ps. 18,565,000 reported in the first quarter 2007. This increase in broadcasting income was mainly attributable to the decrease in broadcasting expenses described above.
Depreciation and amortization expenses for the first quarter 2008 were Ps. 7,681,000, a 14.0% decrease compared to the Ps. 8,929,000 reported in the first quarter of 2007. This decrease was attributable to the Company no longer recording depreciation on certain assets after the fourth quarter 2006 due to the conclusion of their useful life.
For the first quarter 2008, the Company's corporate, general and administrative expenses were Ps. 3,495,000, a slight increase compared to the Ps. 3,439,000 reported in the first quarter 2007.
The Company reported operating income of Ps. 13,101,000 in the first quarter 2008, a 111.4% increase compared to the Ps. 6,197,000 reported in the first quarter 2007. This increase was mainly due to the decrease in broadcasting expenses during the first quarter 2008 compared to the first quarter 2007.
For the first quarter 2008, other expenses, net, were Ps. 11,823,000, a 7.7% increase compared to the Ps. 10,977,000 reported in the first quarter 2007. This increase is primarily attributable to the increase in expenses related to the company's listing on the Bolsa Mexicana de Valores (the Mexican Stock Exchange) and The New York Stock Exchange, as well as the inclusion of employee profit sharing expenses in this line item, as a result of a reclassification required by Bulletin D-3 ("Employee Benefits"), published by the Mexican Board for Research and Development of Financial Information Standards, which took effect in the fourth quarter 2007. Employee profit sharing expenses were previously recorded as a separate line item ("Provisions for income tax and employee profit sharing").
The Company's comprehensive financing cost for the first quarter 2008 was
Ps. 137,000, compared to a comprehensive financing gain of Ps. 510,000 for the
first quarter 2007. This variation was mainly attributable to a 57.4%
decrease in interest income during the period, reflecting a decline in the
Company's cash and temporary investments, primarily as a result of a dividend
payment in
For the first quarter of 2008, the Company reported income before income taxes of Ps. 1,141,000 compared to a loss before income taxes of Ps. 4,270,000 reported for the first quarter 2007, primarily a result of lower broadcasting expenses.
The Company recorded income taxes of Ps. 331,000 in the first quarter 2008, compared to a negative provision of Ps. 1,302,000 in the first quarter 2007, as a result of higher taxable income.
As a result of the foregoing, the Company's net income for the first quarter 2008 was Ps. 810,000, compared to net loss of Ps. 2,968,000 in the first quarter 2007.
Cessation of inflation accounting under MFRS
In accordance with MFRS inflation accounting rules, the Company's first
quarter 2007 financial statements are expressed in constant pesos as of
Company Description
Grupo Radio Centro owns and/or operates 14 radio stations, of which 11 are
in
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, 2008 and 2007(1) (figures in thousands of Mexican pesos ("Ps.") and U.S. dollars ("U.S. $")(2) March 31 2008 2007 U.S. $(2) Ps. Ps. ASSETS Current assets: Cash and temporary investments 6,250 66,849 146,113 Accounts receivable: Broadcasting, net 14,482 154,903 192,285 Other 487 5,205 8,976 Income tax prepaid 319 3,413 0 15,288 163,521 201,261 Prepaid expenses 3,100 33,159 23,098 Total current assets 24,638 263,529 370,472 Property and equipment, net 44,318 474,035 480,134 Deferred charges, net 525 5,614 4,205 Excess of cost over book value of subsidiaries 77,491 828,863 828,862 Other assets 303 3,239 3,380 Total assets 147,275 1,575,280 1,687,053 LIABILITIES Current: Advances from customers 10,775 115,253 119,835 Other accounts payable and accrued expenses 6,542 69,969 58,916 Taxes payable 1,594 17,054 56,715 Total current liabilities 18,911 202,276 235,466 Long-Term: Deferred income tax 258 2,762 9,229 Reserve for labor obligations 5,584 59,726 57,877 Total liabilities 24,753 264,764 302,572 STOCKHOLDERS' EQUITY Capital stock 105,683 1,130,409 1,130,409 Retained (deficit) earnings 12,761 136,491 209,868 Provision for repurchase of shares 4,099 43,839 43,839 Effect from labor obligations (85) (909) (309) Minority interest 64 686 674 Total stockholders' equity 122,522 1,310,516 1,384,481 Total liabilities and stockholders' equity 147,275 1,575,280 1,687,053 (1) Amounts for the first quarter 2007 are expressed in Mexican pesos with purchasing power as of December 31, 2007. As a result of a change in MFRS for periods beginning in 2008, we have not prepared 2008 amounts using inflation accounting or re- expressed 2007 amounts as of March 31, 2008. (2) Peso amounts have been translated into U.S. dollars, solely for the convenience of the reader, at the rate of Ps. 10.6962 per U.S. dollar, the rate on March 31, 2008.
GRUPO RADIO CENTRO, S.A.B. DE C.V. CONSOLIDATED UNAUDITED STATEMENT OF INCOME for the three-month periods ended March 31, 2008 and 2007(1) (figures in thousands of Mexican pesos ("Ps.") and U.S. dollars ("U.S. $")(2), except per Share and per ADS amounts) March 31 2008 2007 U.S.$(2) Ps. Ps. Broadcasting revenue(3) 11,991 128,258 128,534 Broadcasting expenses, excluding depreciation, amortization and corporate, general and administrative expenses 9,721 103,981 109,969 Broadcasting income 2,270 24,277 18,565 Depreciation and amortization 718 7,681 8,929 Corporate, general and administrative expenses 327 3,495 3,439 Operating income 1,225 13,101 6,197 Other expenses, net (1,105) (11,823) (10,977) Comprehensive financing income (cost): Interest expense (82) (874) (528) Interest income(3) 72 767 1,801 Gain (loss) on foreign currency exchange, net (3) (30) 33 Gain (loss) on net monetary position(4) - - (796) (13) (137) 510 Income (loss) before income taxes 107 1,141 (4,270) Income taxes 31 331 (1,302) Net income (loss) 76 810 (2,968) Net income (loss) applicable to: Majority interest 75 801 (2,973) Minority interest 1 9 5 76 810 (2,968) Net income (loss) per Series A Share(5) 0.055 0.583 2.430 Net income (loss) per ADS(5) 0.491 5.247 21.871 Weighted average common shares outstanding (000's)(5) 162,724 162,500 (1) Amounts for the first quarter 2007 are expressed in Mexican pesos with purchasing power as of December 31, 2007. As a result of a change in MFRS for periods beginning in 2008, we have not prepared 2008 amounts using inflation accounting or re-expressed 2007 amounts as of March 31,2008. (2) Peso amounts have been translated into U.S. dollars, solely for the convenience of the reader, at the rate of Ps. 10.6962 per U.S. dollar, the rate on March 31, 2008. (3) 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 2008 and 2007 was Ps. 555,000 and Ps. 799,000, respectively. (4) As a result of a change in MFRS for periods beginning in 2008, we will no longer use inflation accounting unless the economic environment is "inflationary", as defined by MFRS. Since the economic environment was not inflationary in the first quarter 2008, we have not reported gain (loss) on net monetary position for this period. (5) 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 NY: In Mexico: Maria Barona / Peter Majeski Pedro Beltran / Alfredo Azpeitia i-advize Corporate Communications, Inc. Grupo Radio Centro, S.A.B. de C.V. Tel: (212) 406-3690 aazpeitia@grc.com.mx grc@i-advize.com
SOURCE Grupo Radio Centro, S.A.B. de C.V.