Fourth Quarter Results
Broadcasting revenue for the fourth quarter 2007 was Ps. 206,960,000, a 0.5% increase compared to the Ps. 205,961,000 reported in the fourth quarter 2006. This increase was mainly attributable to higher advertising expenditures by the Company's clients, who purchased more airtime in the fourth quarter 2007 compared to the fourth quarter 2006.
The Company's broadcasting expenses (excluding depreciation, amortization and corporate, general and administrative expenses) for the fourth quarter 2007 were Ps. 109,899,000, a 4.6% increase compared to Ps. 105,054,000 reported in the fourth quarter 2006. This increase was primarily due to an increase in market research and advertising campaign expenses in the fourth quarter 2007.
For the fourth quarter 2007, the Company reported broadcasting income (i.e., broadcasting revenue minus broadcasting expenses, excluding depreciation, amortization and corporate, general and administrative expenses) of Ps. 97,061,000, a 3.8% decrease compared to the Ps. 100,907,000 reported in the fourth quarter 2006. This decrease in broadcasting income was mainly attributable to the increase in broadcasting expenses described above.
Depreciation and amortization expense for the fourth quarter 2007 was Ps. 8,051,000, a 13.1% decrease compared to the Ps. 9,266,000 reported in fourth quarter of 2006. This decrease was attributable to the Company no longer recording depreciation on certain assets due to the conclusion of its useful life after the fourth quarter 2006.
The Company's corporate, general and administrative expenses were Ps. 4,916,000 in the fourth quarter 2007, a slight increase compared to the Ps. 4,897,000 reported in the fourth quarter 2006.
The Company reported operating income of Ps. 84,094,000 in the fourth quarter 2007, a 3.1% decrease compared to the Ps. 86,744,000 in operating income of the fourth quarter 2006. This decrease was mainly due to an increase in broadcasting expenses during the fourth quarter 2007 compared to the fourth quarter 2006.
During the fourth quarter 2007, other expenses, net were Ps. 14,152,000, a 14.0% decrease compared to the Ps. 16,464,000 reported in the fourth quarter 2006. This decrease is primarily attributable to the recording of non- recurring expenses during 2006 in connection with the Company's 60th anniversary celebration.
The Company's comprehensive financing cost for the fourth quarter 2007 was Ps. 745,000, compared to a comprehensive financing cost of Ps. 31,738,000 in the fourth quarter 2006. This favorable change was mainly due to lower interest expenses in the fourth quarter 2007 which totaled Ps. 781,000 compared to the fourth quarter 2006, when the Company classified as 'interest expenses' the excess of book value over the purchase price obtained on the sale of certain accounts receivable of Ps. 27,877,000.
For the fourth quarter 2007, the Company reported income before extraordinary items of Ps. 69,197,000, a 79.5% increase compared to the Ps. 38,542,000 reported in the fourth quarter 2006, mainly as a result of the decrease in the comprehensive financing cost described above.
The Company's income before income taxes was the same as income before
extraordinary items (Ps. 69,197,000) as the Company did not have any
extraordinary items in the fourth quarter 2007. Income before income taxes in
the fourth quarter 2006 was Ps. 41,902,000, reflecting an extraordinary item
of Ps. 3,360,000 due to an inflation adjustment recorded in
The Company recorded income taxes of Ps. 23,161,000 in the fourth quarter 2007, compared to a negative provision of Ps. 4,700,000 in the fourth quarter 2006. This increase was primarily due to higher taxable income in the fourth quarter 2007 compared to the fourth quarter of 2006.
As a result of the foregoing, the Company's net income for the fourth quarter 2007 was Ps. 46,036,000, compared to net income of Ps. 46,602,000 in the fourth quarter 2006.
Twelve-Month Results
For the year ended
The Company's broadcasting expenses (excluding depreciation, amortization
and corporate, general and administrative expenses) for the year ended
Broadcasting income (i.e., broadcasting revenue minus broadcasting
expenses, excluding depreciation, amortization and corporate, general and
administrative expenses) for the year ended
Depreciation and amortization expense for the year ended
The Company's corporate, general and administrative expenses for the year
ended
As a result of the foregoing, the Company reported operating income of
Ps. 184,329,000 for the year ended
Other expenses, net, for the year ended
The Company's comprehensive financing cost for the year ended
For the year ended
For the year ended
The Company recorded income taxes of Ps. 41,554,000 for 2007, compared to Ps. 42,944,000 in 2006.
As a result of the foregoing, the Company reported net income of Ps. 91,119,000 in 2007, compared to net income of Ps. 434,748,000 in 2006.
Company Description
Grupo Radio Centro owns and/or operates 14 radio stations. Of these 14
radio stations, Grupo Radio Centro operates 11 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
GRUPO RADIO CENTRO, S.A.B. DE C.V. CONSOLIDATED AUDITED BALANCE SHEETS as of December 31, 2007 and 2006 in Mexican Pesos ("Ps.") with purchasing power as of December 31, 2007 (figures in thousands of Ps. and U.S. dollars ("U.S.$")(1) December 31, 2007 2006 U.S.$(1) Ps. Ps. ASSETS Current assets: Cash and temporary investments 15,298 167,011 101,741 Accounts receivable: Broadcasting, net 17,927 195,707 256,601 Other 427 4,663 19,367 18,354 200,370 275,968 Prepaid expenses 3,056 33,360 26,469 Total current assets 36,708 400,741 404,178 Property and equipment, net 42,279 461,555 481,220 Deferred charges, net 554 6,047 4,631 Excess of cost over book value of net assets of subsidiaries, net 75,925 828,863 828,734 Other assets 298 3,239 3,410 Total assets 155,764 1,700,445 1,722,173 LIABILITIES Current: Advances from customers 11,397 124,418 132,546 Suppliers and other accounts payable 5,077 55,420 47,256 Taxes payable 4,658 50,847 90,831 Total current liabilities 21,132 230,685 270,633 Long-Term: Reserve for labor liabilities 5,368 58,605 54,706 Deferred taxes 470 5,130 9,389 Total liabilities 26,970 294,420 334,728 SHAREHOLDERS' EQUITY Capital stock 103,547 1,130,410 1,130,410 Cumulative earnings 30,525 333,241 314,077 Reserve for repurchase of shares 4,016 43,837 43,837 Cumulative effect of deferred income taxes (9,739) (106,320) (106,320) Effects from labor liabilities (83) (907) (310) Surplus on restatement of capital 466 5,084 5,084 Minority interest 62 680 667 Total shareholders' equity 128,794 1,406,025 1,387,445 Total liabilities and Shareholders' equity 155,764 1,700,445 1,722,173 (1) Peso amounts have been translated into U.S. dollars, solely for the convenience of the reader, at the rate of Ps. 10.9169 per U.S. dollar, the noon buying rate for Mexican pesos on December 31, 2007 as published by the Federal Reserve Bank of New York. GRUPO RADIO CENTRO, S.A.B. DE C.V. CONSOLIDATED AUDITED STATEMENTS OF INCOME
for the three-month and twelve-month periods ended
expressed in Mexican Pesos ("Ps.") with purchasing power as of
December 31, 2007 (figures in thousands of Ps. and U.S. dollars ("U.S. $")(1), except per Share
and per ADS amounts) 4th Quarter Accumulated 12 months 2007 2006 2007 2006 U.S.$(1) Ps. Ps. U.S.$(1) Ps. Ps. Broadcasting revenue(2) 18,958 206,960 205,961 59,977 654,760 825,588 Broadcasting expenses, excluding depreciation, amortization and corporate, general and administrative expenses 10,067 109,899 105,054 38,653 421,970 460,070 Broadcasting income 8,891 97,061 100,907 21,324 232,790 365,518 Depreciation and amortization 737 8,051 9,266 3,086 33,687 37,183 Corporate, general and administrative expenses 450 4,916 4,897 1,353 14,774 14,813 Operating income 7,704 84,094 86,744 16,885 184,329 313,522 Other expenses, net(3) (1,296) (14,152) (16,464) (4,196) (45,806) (59,511) Comprehensive financing cost: Interest expense (72) (781) (27,820) (253) (2,767) (37,665) Interest income (2) (7) (79) (184) 37 399 480 (Loss) Gain on foreign currency exchange, net (1) (12) (32) 0 (5) 8 (Loss) Gain on net monetary position 12 127 (3,702) (318) (3,477) (2,665) (68) (745) (31,738) (534) (5,850) (39,842) Income before extraordinary item and income taxes: 6,340 69,197 38,542 12,155 132,673 214,169 Extraordinary item 0 0 3,360 0 0 263,523 Income before income taxes 6,340 69,197 41,902 12,155 132,673 477,692 Income taxes 2,122 23,161 (4,700) 3,806 41,554 42,944 Net income 4,218 46,036 46,602 8,349 91,119 434,748 Net income applicable to: Majority interest 4,217 46,025 46,611 8,347 91,098 434,685 Minority interest 1 11 (9) 2 21 63 4,218 46,036 46,602 8,349 91,119 434,748 Net income (loss) per Series A Share(4) 0.051 0.5598 2.6712 Net income (loss) per ADS(4) 0.459 5.0382 24.0408 Weighted average common shares outstanding (000's)(4) 162,725 162,500 (1) Peso amounts have been translated into U.S. dollars, solely for the convenience of the reader, at the rate of Ps. 10.9169 per U.S. dollar, the noon buying rate for Mexican pesos on December 31, 2007 as published by the Federal Reserve Bank of New York. (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 air time 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 air time has been transmitted. Interest earned and treated as broadcasting revenue for the fourth quarter of 2007 and 2006 was Ps. 1,867,000 and Ps. 1,724,000, respectively. Interest earned and treated as broadcasting revenue for the twelve months ended December 31, 2007 and 2006 was Ps. 3,333,000 and Ps. 4,797,000, respectively. (3) "Other expenses, net" include employee profit sharing expenses, which were previously recorded under "Provisions for income tax and employee profit sharing". This reclassification is required by Bulletin D-3 ("Beneficios a los empleados"), published by the Mexican Board for Research and Development of Financial Information Standards. (4) 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.
SOURCE Grupo Radio Centro, S.A.B. de C.V.