GRUPO RADIO CENTRO SAB DE CV 
By MEXICO CITY, April 23, 2012 /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 first quarter ended March 31, 2012. All figures were prepared in accordance with International Financial Reporting Standards (IFRS).
First Quarter Results
The Company's broadcasting revenue for the first quarter of 2012 totaled Ps. 241,712,000, a 28.0% increase compared to the Ps. 188,766,000 reported for the first quarter of 2011. This increase was mainly attributable to higher advertising investment by the Company's clients in Mexico, who purchased more airtime during the first quarter of 2012 compared to the same period of 2011.
The Company's broadcasting expenses (excluding depreciation, amortization and corporate expenses) for the first quarter of 2012 totaled Ps. 180,845,000, a 6.0% increase compared to the Ps. 170,656,000 reported for the first quarter of 2011. This increase was primarily due to (i) higher costs and expenses related to the increase in broadcasting revenue and higher commissions paid to the Company's sales force and to advertising agencies, (ii) higher market research expenses and (iii) increased promotional costs.
The Company's depreciation and amortization expenses for the first quarter of 2012 totaled Ps. 5,268,000, a 6.1% decrease compared to the Ps. 5,611,000 recorded for the first quarter of 2011. This decrease was attributable to a reduction in the amount of depreciable assets.
The Company's corporate expenses for the first quarter of 2012 totaled Ps. 3,778,000, the same amount reported for the first quarter of 2011.
The Company's operating income for the first quarter of 2012 totaled Ps. 51,821,000, a significant increase compared to the Ps. 8,721,000 reported for the first quarter of 2011, mainly due to the increase in broadcasting revenue described above.
The Company's other administrative and general expenses, net for the first quarter of 2012 totaled Ps. 14,369,000, a slight decrease compared to the Ps. 15,020,000 reported for the first quarter of 2011.
The Company's finance cost for the first quarter of 2012 totaled Ps. 3,903,000, an 18% decrease compared to the Ps. 4,760,000 reported for the first quarter of 2011. This decrease was mainly attributable to a reduction in the interest expense paid under the Company's loan with Banco Inbursa S.A. as a result of the payment by the Company of a portion of the principal thereon.
The Company's profit before income taxes for the first quarter of 2012 totaled Ps. 33,549,000, a significant increase compared to the loss before income taxes of Ps. 11,059,000 reported in the first quarter of 2011.
The Company's income tax totaled Ps. 4,250,000 for the first quarter of 2012, a 31.9% decrease compared to the Ps. 6,237,000 recorded in the first quarter of 2011 as a result of certain tax benefits.
As a result of the foregoing, the Company's profit in the first quarter of 2012 totaled Ps. 29,299,000, a significant increase compared to net loss of Ps. 17,296,000 recorded for the first quarter of 2011.
Company Description
Grupo Radio Centro owns and/or operates 15 radio stations. Of these 15 radio stations, 12 are located in Mexico City, one AM station in Guadalajara and Monterrey, respectively, 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, the Company also operates Organizacion Impulsora de Radio (OIR), a radio network that acts as the national sales representative for, and provides programming to 127 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 i-advize Corporate
C.V. 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, 2012 and 2011
(figures in thousands of Mexican pesos ("Ps.") and U.S.
dollars ("U.S. $") (1))
-------------------------------------------------------
March 31
--------
2012 2011
U.S. $ (1) Ps. Ps.
---------- --- ---
ASSETS
------
Current assets:
Cash and
cash
equivalents 9,558 122,385 144,868
----- ------- -------
Accounts receivable:
Broadcasting
receivables
-Net 20,004 256,123 208,407
Other
receivables 935 11,974 7,747
--- ------ -----
20,939 268,097 216,154
Prepaid
expenses 2,907 37,217 28,106
----- ------ ------
Total
current
assets 33,404 427,699 389,128
Property and
equipment 36,731 470,306 431,327
Deferred
charges,
net 244 3,120 4,721
Goodwill 64,735 828,863 828,863
Other assets 285 3,653 3,416
--- ----- -----
Total assets 135,399 1,733,641 1,657,455
======= ========= =========
LIABILITIES
-----------
Current liabilities:
Current
portion of
long-term
debt 3,175 40,654 40,981
Deferred
revenue 2,696 34,518 77,631
Accounts
payable and
accrued
expenses 4,914 62,923 64,860
Taxes
payable 2,637 33,763 53,040
----- ------ ------
Total
current
liabilities 13,422 171,858 236,512
Non-current
liabilities:
Long-term
debt 3,125 40,000 80,000
Employee
benefits 6,255 80,092 51,997
Deferred
taxes 458 5,863 9,594
--- ----- -----
Total
liabilities 23,260 297,813 378,103
------ ------- -------
STOCKHOLDERS' EQUITY
--------------------
Common stock 82,784 1,059,962 1,059,962
Retained
earnings 26,639 341,077 186,980
Reserve for
repurchase
of shares 2,342 29,989 29,989
Other
comprehensive
income 358 4,590 2,105
--- ----- -----
Equity
attributable
to owners
of the
Company 112,123 1,435,618 1,279,036
Non-
controlling
Interest 16 210 316
--- --- ---
Total equity 112,139 1,435,828 1,279,352
------- --------- ---------
Total
liabilities
and
stockholders'
equity 135,399 1,733,641 1,657,455
======= ========= =========
(1) Peso amounts have been translated into U.S.
dollars, solely for the convenience of the reader, at
the rate of
Ps. 12.8039 per U.S. dollar, the rate on March 31, 2012
GRUPO RADIO CENTRO, S.A.B. DE C.V.
CONSOLIDATED UNAUDITED STATEMENT OF INCOME
for the three-month periods ended March 31, 2012 and
2011
(figures in thousands of Mexican pesos ("Ps.") and U.S.
dollars ("U.S. $") (1), except per Share and per ADS
amounts)
--------------------------------------------------------
March 31
--------
2012 2011
U.S. $
(1) Ps. Ps.
------ --- ---
Broadcasting revenue
(2) 18,878 241,712 188,766
Broadcasting expenses, excluding
depreciation,
amortization and
corporate expenses 14,124 180,845 170,656
Depreciation and
amortization 411 5,268 5,611
Corporate expenses 295 3,778 3,778
--- ----- -----
Operating income 4,048 51,821 8,721
Other expenses, net (1,122) (14,369) (15,020)
Finance costs:
Interest expense (283) (3,620) (4,691)
Interest income (2) 3 33 (39)
Income (loss) on
foreign currency
exchange, net (25) (316) (30)
--- ---- ---
Net finance costs (305) (3,903) (4,760)
Profit (loss) before
income taxes 2,621 33,549 (11,059)
Income tax expense 332 4,250 6,237
--- ----- -----
Profit (loss) for the
quarter 2,289 29,299 (17,296)
Profit (loss) applicable to:
Majority interest 2,289 29,296 (17,298)
Minority interest 0 3 2
--- --- ---
2,289 29,299 (17,296)
===== ====== =======
Net income (loss) per
Series A Share (3) 0.107 1.3648 0.4345
Net income (loss) per
ADS (3) 0.959 12.2832 3.9105
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. 12.8039 per U.S. dollar, the rate on March 31, 2012
(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 2012 and 2011 was Ps. 1,114,000 and
Ps. 461,000, respectively.
(3) Earnings per share calculations are made for the last
twelve months as of the date of the income Stock
Exchange.
SOURCE Grupo Radio Centro, S.A.B. de C.V.
