Member access

4-Traders Homepage  >  Shares  >  Nyse  >  Grupo Radio Centro SAB de CV    GRDCY   US40049C1027

SummaryQuotesChart AnalysisNewsCalendarCompany 
News SummaryMost relevantAll news 

GRUPO RADGPO RADIO : Grupo Radio Centro Reports First Quarter 2011 Results

04/15/2011 | 07:10pm US/Eastern

MEXICO CITY, April 15, 2011 /PRNewswire/ -- 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, 2011. All figures were prepared in accordance with the International Financial Reporting Standards (IFRS).

First Quarter Results

Broadcasting revenue in the first quarter of 2011 was Ps. 188,766,000, 13.5% higher than Ps. 166,281,000 in the first quarter of 2010. This increase was mainly attributable to higher advertising expenditures by the Company's clients in Mexico during the first quarter 2011 compared to the same period 2010.

The Company's broadcasting expenses (excluding depreciation, amortization and corporate, general and administrative expenses) in the first quarter of 2011 totaled Ps. 170,656,000, a 6.1% increase compared to Ps. 160,783,000 in the first quarter of 2010. This increase was primarily due to (i) higher commissions paid to the Company's sales force and to advertising agencies due to higher broadcasting revenue in the first quarter 2011 compared to the same period in 2010, (ii) higher costs and expenses related to sales, and (iii) increased production costs of talk shows.

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 2011 was Ps. 18,110,000, a 229.4% increase compared to Ps. 5,498,000 in the first quarter of 2010. This increase was attributable to the increase in broadcasting revenue described above.

Depreciation and amortization expenses in the first quarter of 2011 were Ps. 5,611,000, an 8.7% decrease compared to Ps. 6,144,000 in the first quarter of 2010. 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 2011 totaled Ps. 3,778,000, compared to Ps. 3,778,000 in the first quarter 2010.

For the first quarter of 2011 the Company reported an operating income of Ps. 8,721,000, compared to an operating loss of Ps. 4,424,000 in the first quarter of 2010, mainly due to the increase in broadcasting income described above.

For the first quarter of 2011, other expenses, net, were of Ps. 15,020,000, an 11.6% increase compared to Ps. 13,455,000 in the first quarter 2010. This increase was mainly attributable to expenses incurred during the first quarter of 2011 in connection with the Los Angeles radio station.

The Company's comprehensive financing cost in the first quarter of 2011 was Ps. 4,760,000 from Ps. 7,360,000 in the first quarter of 2010. This 35.3% decrease was mainly attributable to a reduction in the interest expense paid in the first quarter of 2011 due to a reduction in the annual interest rate from 13% through March 18, 2010 to 9.5% thereafter combined with a reduction in the principal amount of the Company's loan with Inbursa.

The Company reported a loss before income taxes in the first quarter of 2011 of Ps. 11,059,000, compared to loss before income taxes of Ps. 25,239,000 reported in the first quarter of 2010.

The Company recorded income taxes of Ps. 6,237,000 in the first quarter 2011, compared to Ps. 2,358,000 in the first quarter 2010 due to an increase in taxable income.

As a result of the foregoing, the Company's net loss in the first quarter of 2011 was Ps. 17,296,000, compared to net loss of Ps. 27,597,000 in the first quarter of 2010.

Recent Events

The Company announced that its Audit Committee and Board of Directors have resolved that its new auditors for the fiscal year beginning January 1, 2011 will be Galaz, Yamazaki, Ruiz Urquiza, S.C., a member firm of Deloitte Touche Tohmatsu, Limited.

The Company's Board of Directors and Audit Committee have adopted in advance International Financial Reporting Standards (IFRS) applicable to financial information as of January 1, 2011. Financial results included in this press release from both first quarter 2011 and first quarter 2010 were prepared based on such standards and are fully comparable.

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 110 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.


    IR Contacts
    In Mexico:                         In NY:
    Pedro Beltran / Alfredo Azpeitia   Maria Barona / Peter Majeski
    Grupo Radio Centro, S.A.B. de C.V. i-advize Corporate Communications, Inc.
    Tel: (5255) 5728-4800 Ext. 4910    Tel: (212) 406-3690
    aazpeitia@grc.com.mx               grc@i-advize.com.mx

                          GRUPO RADIO CENTRO, S.A.B. DE C.V.
                         CONSOLIDATED UNAUDITED BALANCE SHEET
                             as of March 31, 2011 and 2010
            (figures in thousands of Mexican pesos ("Ps.") and U.S. dollars
                                    ("U.S. $")(1) )
                                                        March 31
                                                        --------
                                                                      2011
                                                          U.S.
                                                            $(1)    Ps.
                                                         -----      ---
                             ASSETS
                             ------
    Current assets:
      Cash and temporary investments                      12.105   144.868
                                                          ------   -------

    Accounts receivable:
      Broadcasting, net                                   17.414   208.407
      Other                                                  647     7.747


                                                          18.061   216.154

    Prepaid expenses                                       2.348    28.106
                                                           -----    ------
      Total current assets                                32.514   389.128

    Property and equipment, net                           36.041   431.327
    Prepaid expenses                                           0         0
    Deferred charges, net                                    394     4.721
    Excess of cost over book value of net assets of
     subsidiaries, net                                    69.258   828.863
    Other assets                                             288     3.416
                                                             ---     -----
                          Total assets                   138.495 1.657.455
                                                         ======= =========

                          LIABILITIES
                          -----------
    Current:
      Short-term debt                                      3.424    40.981
      Advances from customers                              6.487    77.631
      Suppliers and other accounts payable                 5.420    64.860
      Taxes payable                                        4.432    53.040
                                                           -----    ------
         Total current liabilities                        19.763   236.512

    Long-Term:
      Long-term debt                                       6.685    80.000
      Reserve for labor liabilities                        4.345    51.997
      Deferred taxes                                         802     9.594
                                                             ---     -----
                          Total liabilities               31.595   378.103
                                                          ------   -------

                      SHAREHOLDERS' EQUITY
                      --------------------
    Capital stock                                         88.568 1.059.962
    Cumulative earnings                                    4.107    49.151
    Reserve for repurchase of shares                       2.506    29.989
    Effect from Initial Adoption of IFRS                  11.693   139.934
                                                          ------   -------
    Majority shareholders' equity                        106.874 1.279.036
    Minority interest                                         26       316
                                                             ---       ---
         Total shareholders'  equity                     106.900 1.279.352
                                                         ------- ---------
             Total liabilities and shareholders' equity  138.495 1.657.455


                                                        March 31
                                                        --------
                                                                   2010
                                                           Ps.
                                                           ---
                             ASSETS
                             ------
    Current assets:
      Cash and temporary investments                             35.071
                                                                 ------

    Accounts receivable:
      Broadcasting, net                                         201.376
      Other                                                       8.446


                                                                209.822

    Prepaid expenses                                            110.754
                                                                -------
      Total current assets                                      355.647

    Property and equipment, net                                 453.203
    Prepaid expenses                                              3.636
    Deferred charges, net                                         2.704
    Excess of cost over book value of net assets of
     subsidiaries, net                                          828.863
    Other assets                                                  3.353
                                                                  -----
                          Total assets                        1.647.406
                                                              =========

                          LIABILITIES
                          -----------
    Current:
      Short-term debt                                            40.591
      Advances from customers                                    95.820
      Suppliers and other accounts payable                       81.976
      Taxes payable                                              34.891
                                                                 ------
         Total current liabilities                              253.278

    Long-Term:
      Long-term debt                                            120.000
      Reserve for labor liabilities                              47.838
      Deferred taxes                                              2.166
                                                                  -----
                          Total liabilities                     423.282
                                                                -------

                      SHAREHOLDERS' EQUITY
                      --------------------
    Capital stock                                             1.059.962
    Cumulative earnings                                         (18.428)
    Reserve for repurchase of shares                             29.989
    Effect from Initial Adoption of IFRS                        152.295
                                                                -------
    Majority shareholders' equity                             1.223.818
    Minority interest                                               306
                                                                    ---
         Total shareholders'  equity                          1.224.124
                                                              ---------
             Total liabilities and shareholders' equity       1.647.406



    (1)  Peso amounts have been translated into U.S. dollars, solely for
    the convenience of the reader, at the rate of    Ps. 11.9678 per
    U.S. dollar, the rate on March 31, 2011.


                          GRUPO RADIO CENTRO, S.A.B. DE C.V.
                      CONSOLIDATED UNAUDITED STATEMENT OF INCOME
              for the three-month  periods ended March 31, 2011 and 2010
           (figures in thousands of  Mexican pesos ("Ps.") and U.S. dollars
                 ("U.S. $")(1), except per Share and per ADS amounts)
                                                             March 31
                                                             --------
                                                                         2011
                                                               U.S.$
                                                                  (1)   Ps.
                                                               -----    ---

    Broadcasting revenue (2)                                   15.773 188.766
    Broadcasting expenses, excluding depreciation,
      amortization and corporate, general and administrative
       expenses                                                14.260 170.656
                                                               ------ -------
    Broadcasting income                                         1.513  18.110

    Depreciation and amortization                                 469   5.611
    Corporate, general and administrative expenses                316   3.778
                                                                  ---   -----
    Operating  (loss) income                                      728   8.721

    Other expenses, net                                        -1.255 -15.020

    Comprehensive financing income (cost):
      Interest expense                                           -392  -4.691
      Interest income (2)                                          -3     -39
      Gain (loss) on foreign currency exchange, net                -3     -30
                                                                  ---     ---
                                                                 -398  -4.760

    (Loss) income before income taxes                            -925 -11.059

    Income taxes                                                  521   6.237
                                                                  ---   -----
    Net (loss) income                                          -1.446 -17.296

    Net (loss) income applicable to:
      Majority interest                                        -1.446 -17.298
      Minority interest                                             0       2
                                                                  ---     ---
                                                               -1.446 -17.296
                                                               ====== =======

    Net income (loss) per Series A Share (3)                    0,036  0,4345
    Net income (loss) per ADS (3)                               0,327  3,9105
    Weighted average common shares outstanding  (000's) (3)           162.724



                                                             March 31
                                                             --------
                                                                      2010
                                                                Ps.
                                                                ---

    Broadcasting revenue (2)                                       166.281
    Broadcasting expenses, excluding depreciation,
      amortization and corporate, general and administrative
       expenses                                                    160.783
                                                                   -------
    Broadcasting income                                              5.498

    Depreciation and amortization                                    6.144
    Corporate, general and administrative expenses                   3.778
                                                                     -----
    Operating  (loss) income                                        -4.424

    Other expenses, net                                            -13.455

    Comprehensive financing income (cost):
      Interest expense                                              -7.620
      Interest income (2)                                                9
      Gain (loss) on foreign currency exchange, net                    251
                                                                       ---
                                                                    -7.360

    (Loss) income before income taxes                              -25.239

    Income taxes                                                     2.358
                                                                     -----
    Net (loss) income                                              -27.597

    Net (loss) income applicable to:
      Majority interest                                            -27.600
      Minority interest                                                  3
                                                                       ---
                                                                   -27.597
                                                                   =======

    Net income (loss) per Series A Share (3)                        0,0992
    Net income (loss) per ADS (3)                                   0,8928
    Weighted average common shares outstanding  (000's) (3)        162.724


    (1)  Peso amounts have been translated into U.S. dollars, solely for
    the convenience of the reader, at the rate of Ps. 11.9678 per U.S.
    dollar, the rate on March 31, 2011.

    (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 2011 and 2010 was
    Ps. 461,000 and Ps. 920,000, 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.

SOURCE Grupo Radio Centro, S.A.B. de C.V.

React to this article
Latest news on GRUPO RADIO CENTRO SAB DE
2012 GRUPO RADIO CENTRO SAB DE CV : Grupo Radio Centro Reports Third Quarter and Nine..
2012 GRUPO RADIO CENTRO SAB DE CV : Grupo Radio Centro Announces Successful Consummat..
2012 GRUPO RADIO CENTRO SAB DE CV : Grupo Radio Centro Calls General Ordinary Shareho..
2012 GRUPO RADIO CENTRO SAB DE CV : Grupo Radio Centro Reports Second Quarter and Fir..
2012 GRUPO RADIO CENTRO SAB DE CV : Grupo Radio Centro Announces Filing of its 2011 A..
2012 GRUPO RADIO CENTRO SAB DE CV : Grupo Radio Centro Reports Results for the First ..
2012 GRUPO RADIO CENTRO SAB DE CV : Grupo Radio Centro Reports Results for Fourth Qua..
2011 GRUPO RADIO CENTRO SAB DE CV : Grupo Radio Centro Reports Results for the Third ..
2011 GRUPO RADGPO RADIO : Grupo Radio Centro Announces General Ordinary Shareholder M..
2011 GRUPO RADGPO RADIO : Grupo Radio Centro Reports Second Quarter and First Half 20..
Dynamic quotes  
ON
| OFF