Member access

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

SummaryQuotesChart AnalysisNewsCalendarCompany 

GRUPO RADGPO RADIO : Grupo Radio Centro Reports Second Quarter and First Half 2009 Results

07/21/2009 | 07:35pm US/Eastern
Recommend:
0

MEXICO CITY, July 21 /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 second quarter and first half ended June 30, 2009. All figures were prepared in accordance with the Financial Reporting Standards issued by the Mexican Board for Research and Development of Financial Information Standards.

Second Quarter Results

Broadcasting revenue for the second quarter of 2009 was Ps. 177,990,000, a 2.52% increase compared to the Ps. 173,613,000 reported for the second quarter of 2008. This increase was mainly attributable to slightly higher advertising expenditures by the Company's clients in Mexico during the second quarter of 2009 compared to the same period of 2008, and to the incorporation of the Company's operation of Los Angeles radio station, KXOS-FM, pursuant to a Local Marketing Agreement (the "LMA") with Emmis Communications Corporation during its first months of operations.

The Company's broadcasting expenses (excluding depreciation, amortization and corporate, general and administrative expenses) for the second quarter of 2009 were Ps. 131,700,000, a 20.99% increase compared to the Ps. 108,856,000 reported for the second quarter of 2008. This increase was primarily due to (i) broadcasting expenses incurred in connection with the Los Angeles radio station KXOS-FM, to which the Company began providing programming in April 2009 pursuant to the LMA and (ii) an increase in the peso cost of U.S. dollar-denominated rental payments under the Company's agreement to operate Mexican station XHFO-FM, given the lower value of the Mexican peso in the second quarter of 2009 compared to the second quarter of 2008.

For the second quarter of 2009, the Company recorded broadcasting income (i.e., broadcasting revenue minus broadcasting expenses, excluding depreciation, amortization and corporate, general and administrative expenses) of Ps. 46,290,000, a 28.52% decrease compared to the Ps. 64,757,000 reported for the second quarter of 2008. This decrease was mainly attributable to the aforementioned increase in broadcasting expenses.

Depreciation and amortization expenses for the second quarter of 2009 were Ps. 6,614,000, a 17.85% decrease compared to the Ps. 8,051,000 reported for the second quarter of 2008, due to a reduction in the amount of depreciable assets.

The Company's corporate, general and administrative expenses were Ps. 3,779,000 in the second quarter of 2009, a slight decline compared to the Ps. 3,805,000 reported for the second quarter of 2008.

The Company recorded operating income of Ps. 35,897,000 in the second quarter of 2009, a 32.14% decrease compared to the Ps. 52,901,000 in operating income reported for the second quarter of 2008. This decline was due to increased broadcasting expenses during the second quarter of 2009 compared to the second quarter of 2008, as described above.

During the second quarter of 2009, other expenses, net, were Ps. 34,859,000, a 176.18% increase compared to the Ps. 12,622,000 reported for the second quarter of 2008. This increase was mainly attributable to legal expenses incurred during the second quarter of 2009 in connection with the Company's entry into the LMA.

The Company's comprehensive financing cost for the second quarter of 2009 was Ps. 24,710,000, compared to Ps. 4,370,000 in the second quarter of 2008. This unfavorable change was primarily due to (i) a Ps. 16,030,000 loss on net foreign currency exchange attributable to a decline in the peso value of a U.S. denominated loan from the Company to a U.S. subsidiary, and (ii) a 130.05% increase in interest expense associated with the Company's loan from Banco Inbursa, S.A. to fund amounts payable under the LMA.

For the second quarter of 2009, the Company recorded a loss before taxes of Ps. 23,672,000, representing a decline from income before taxes of Ps. 35,909,000 reported for the second quarter of 2008, which was primarily attributable to the increases in broadcasting expenses, other expenses and in the Company's comprehensive financing cost during the second quarter of 2009, as described above.

The Company recorded income taxes of Ps. 4,615,000 in the second quarter of 2009, a 55.92% decrease compared to the Ps. 10,469,000 recorded in the second quarter of 2008. This decline was due to lower taxable income in the second quarter of 2009 than in the second quarter of 2008.

As a result of the foregoing, the Company had a net loss for the second quarter of 2009 of Ps. 28,287,000, compared to net income of Ps. 25,440,000 in the second quarter of 2008.

First Half Results

For the six months ended June 30, 2009, broadcasting revenue was Ps. 333,781,000, a 10.57% increase compared to the Ps. 301,871,000 reported for the same period of 2008. The increase was mainly attributable to an increase in advertising expenditures by the Company's clients, who purchased more airtime during the first half of 2009 than the comparable period of 2008 and to a lesser extent to the incorporation of the Company's operation of Los Angeles radio station KXOS-FM, during its first months of operations.

The Company's broadcasting expenses (excluding depreciation, amortization and corporate, general and administrative expenses) for the first six months of 2009 were Ps. 243,850,000, a 14.57% increase compared to the Ps. 212,837,000 reported for the same period of 2008. This increase was primarily due to (i) broadcasting expenses incurred in connection with the provision of programming to KXOS-FM, beginning in April 2009, (ii) higher sales commissions due to the increase in broadcasting revenue, and (iii) the increase in the peso cost of U.S. dollar-denominated rental payments under the Company's agreement to operate XHFO-FM, given the lower value of the Mexican peso in the first six months of 2009 compared to the first six months of 2008.

Broadcasting income (i.e., broadcasting revenue minus broadcasting expenses, excluding depreciation, amortization and corporate, general and administrative expenses) for the first six months of 2009 was Ps. 89,931,000, a 1.01% increase compared to the Ps. 89,034,000 reported for the same period of 2008.

Depreciation and amortization expenses for the first six months of 2009 were Ps. 13,154,000, a 16.39% decrease compared to the Ps. 15,732,000 reported for the same period of 2008. This decrease was due to a reduction in the amount of depreciable assets.

The Company's corporate, general and administrative expenses for the first six months of 2009 were Ps. 7,557,000, a slight increase compared to the Ps. 7,300,000 reported for the same period of 2008.

As a result of the foregoing, the Company recorded operating income of Ps. 69,220,000 for the first six months of 2009, a 4.88% increase compared to the Ps. 66,002,000 reported for the same period of 2008.

Other expenses, net, for the first six months of 2009 were Ps. 46,744,000, a 91.22% increase compared to the Ps. 24,445,000 reported for the same period of 2008. This increase was mainly attributable to legal expenses incurred during the second quarter of 2009 in connection with the Company's entry into the LMA.

The Company's comprehensive cost of financing for the first six months of 2009 was Ps. 25,782,000, compared to Ps. 4,507,000 in the same period of 2008. This unfavorable change was primarily due to (i) a Ps. 15,241,000 loss on net foreign currency exchange attributable to a decline in the peso value of a U.S. denominated loan from the Company to a U.S. subsidiary and (ii) a 127.55% increase in interest expense associated with the Company's loan from Banco Inbursa, S.A. to fund amounts payable under the LMA.

For the first six months of 2009, the Company recorded a loss before taxes of Ps. 3,306,000 compared to income before taxes of Ps. 37,050,000 in the same period of 2008, mainly due to the aforementioned increases in other expenses and in the Company's comprehensive cost of financing.

The Company recorded income taxes of Ps. 10,318,000 for the first six months of 2009, a slight decline compared to the Ps. 10,800,000 recorded in the same period of 2008.

As a result of the foregoing, the Company recorded a net loss of Ps. 13,624,000 in the first six months of 2009, compared to net income of Ps. 26,250,000 in the first six months of 2008.

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.

    IR Contacts
    In Mexico:
    Pedro Beltran / Alfredo Azpeitia
    Grupo Radio Centro, S.A.B. de C.V.
    Tel: (5255) 5728-4800 Ext. 7018
    aazpeitia@grc.com.mx

    In NY:
    Maria Barona / Peter Majeski
    i-advize Corporate Communications, Inc.
    Tel: (212) 406-3690
    grc@i-advize.com.mx



                      GRUPO RADIO CENTRO, S.A.B. DE C.V.
                    CONSOLIDATED UNAUDITED BALANCE SHEETS
                         as of June 30, 2009 and 2008
(figures in thousands of  Mexican pesos ("Ps.") and U.S. dollars ("U.S.$") (1)
                                                       June 30,
                                                   2009              2008
                                          U.S. $(1)      Ps.          Ps.
                 ASSETS
    Current assets:
      Cash and temporary investments          3,809       50,286      104,366

    Accounts receivable:
      Broadcasting, net                      16,553      218,540      161,774
      Other                                   1,444       19,060        5,658
                                             17,997      237,600      167,432

    Prepaid expenses                          8,947      118,126       26,206
      Total current assets                   30,753      406,012      298,004

    Property and equipment, net              36,622      483,493      467,669
    Prepaid expenses                          5,542       73,167            0
    Deferred charges, net                       309        4,073        5,216
    Excess of cost over book value of net
     assets of subsidiaries, net             62,780      828,863      828,863
    Other assets                                253        3,340        3,325
              Total assets                  136,259    1,798,948    1,603,077

               LIABILITIES
    Current:
      Notes payable                           2,436       32,167            0
      Advances from customers                 8,142      107,492      111,219
      Suppliers and other accounts
       payable                                6,382       84,262       72,030
      Taxes payable                           2,165       28,588       24,299
         Total current liabilities           19,125      252,509      207,548

    Long-Term:
      Notes payable                          12,119      160,000            0
      Reserve for labor liabilities           4,772       62,997       60,116
      Deferred taxes                            298        3,940        2,233
              Total liabilities              36,314      479,446      269,897

          SHAREHOLDERS' EQUITY
    Capital stock                            85,622    1,130,410    1,130,409
    Cumulative earnings                      10,922      144,194      158,240
    Reserve for repurchase of shares          3,321       43,837       43,839
    Minority interest                            80        1,061          692
         Total shareholders'  equity         99,945    1,319,502    1,333,180
          Total liabilities and
          Shareholders' equity              136,259    1,798,948    1,603,077

     (1)  Peso amounts have been translated into U.S. dollars, solely for the
          convenience of the reader, at the rate of Ps. 13.2023  per U.S.
          dollar, the rate on June 30, 2009.

                      GRUPO RADIO CENTRO, S.A.B. DE C.V.
                 CONSOLIDATED UNAUDITED STATEMENTS OF INCOME

for the three-month and six-month periods ended June 30, 2009 and 2008 (figures in thousands of Mexican pesos ("Ps.") and U.S. dollars ("U.S.$")(1),

                    except per Share and per ADS amounts)

                                 2nd Quarter           Accumulated 6 months
                                2009         2008         2009         2008
                           U.S.$                     U.S.$
                            (1)      Ps.      Ps.     (1)      Ps.      Ps.

    Broadcasting revenue
     (2)                   13,482  177,990  173,613  25,282  333,781  301,871
    Broadcasting expenses,
     excluding depreciation,
     amortization and
     corporate, general
     and administrative
     expenses               9,976  131,700  108,856  18,470  243,850  212,837
    Broadcasting income     3,506   46,290   64,757   6,812   89,931   89,034

    Depreciation and
     amortization             501    6,614    8,051     996   13,154   15,732
    Corporate, general and
     administrative
     expenses                 286    3,779    3,805     572    7,557    7,300
    Operating income        2,719   35,897   52,901   5,244   69,220   66,002

    Other expenses, net    (2,640) (34,859) (12,622) (3,541) (46,744) (24,445)

    Comprehensive
     financing cost:
      Interest expense       (670)  (8,843)  (3,844)   (813) (10,736)  (4,718)
      Interest income (2)      12      163     (452)     15      195      315
       (Loss) on foreign
       currency exchange,
       net                 (1,214) (16,030)     (74) (1,154) (15,241)    (104)
                           (1,872) (24,710)  (4,370) (1,952) (25,782)  (4,507)

    (Loss) Income before
     income taxes          (1,793) (23,672)  35,909    (249)  (3,306)  37,050

      Income taxes            350    4,615   10,469     782   10,318   10,800
    Net (loss) income      (2,143) (28,287)  25,440  (1,031) (13,624)  26,250

    Net (loss) income
     applicable to:
      Majority interest      (681)  (8,981)  25,434     430    5,658   26,235
      Minority interest    (1,462) (19,306)       6  (1,461) (19,282)      15
                           (2,143) (28,287)  25,440  (1,031) (13,624)  26,250

    Net income per Series
     A Share (3)                                      0.049   0.6523   0.6403
    Net income per ADS (3)                            0.441   5.8707   5.7627
    Weighted average
     common shares
     outstanding (000's) (3)                                 162,725  162,725


    (1)  Peso amounts have been translated into U.S. dollars, solely for the
         convenience of the reader, at the rate of Ps. 13.2023 per U.S.
         dollar, the rate on June 30, 2009.

    (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 second quarter of 2009 and 2008 was
         Ps. 1,221,000 and Ps. 1,562,000, respectively. Interest earned and
         treated as broadcasting revenue for the six months ended June 30,
         2009 and 2008 was Ps. 2,569,000 and Ps. 2,211,000, 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.

Recommend :
0
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