MEXICO CITY, April 27 /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 quarter ended March 31, 2009. All figures were prepared in accordance with
the Mexican Financial Reporting Standards ('MFRS') issued by the Mexican Board
for Research and Development of Financial Information Standards.
First Quarter Results
Broadcasting revenue in the first quarter of 2009 was Ps. 155,791,000,
21.5% higher than Ps. 128,258,000 in the first quarter of 2008. This increase
was attributable to higher advertising expenditures by the Company's clients
during the first quarter of 2009 compared to the first quarter of 2008.
The Company's broadcasting expenses (excluding depreciation, amortization
and corporate, general and administrative expenses) in the first quarter of
2009 totaled Ps. 112,150,000, a 7.9% increase compared to Ps. 103,981,000 in
the first quarter of 2008. This increase was primarily attributable to:
(i) higher sales commissions due to the increase in broadcasting revenue,
(ii) an increase in the peso cost of U.S. dollar-denominated rental payments
pursuant to the Company's agreement to operate XHFO-FM, due to the
depreciation of the Mexican peso, and (iii) higher marketing research
expenses.
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 was Ps. 43,641,000,
a 79.8% increase compared to Ps. 24,277,000 in the first quarter of 2008.
This increase was attributable to the 21.5% increase in broadcasting revenue
described above combined with the much smaller increase in broadcasting
expenses.
Depreciation and amortization expenses in the first quarter of 2009 were
Ps. 6,540,000, a 14.9% decrease compared to Ps. 7,681,000 in the first quarter
of 2008. 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 2009 totaled Ps. 3,778,000, a slight increase compared to
Ps. 3,495,000 in the first quarter 2008.
The Company's operating income in the first quarter of 2009 was
Ps. 33,323,000, a 154.4% increase compared to Ps. 13,101,000 in the first
quarter of 2008. This increase was due to the increase in broadcasting revenue
during the first quarter of 2009 combined with a relatively stable level of
expenses.
Other expenses, net, remained stable during the first quarter of 2009 at
Ps. 11,885,000, compared to Ps. 11,823,000 in the first quarter 2008.
The Company's comprehensive financing cost in the first quarter of 2009
increased to Ps. 1,072,000 from Ps. 137,000 in the first quarter of 2008.
This increase was mainly attributable to a 116.6% increase in interest expense
in the first quarter of 2009, which resulted primarily from an increase in the
fees payable under the Company's credit facility beginning in June 2008, as
well as the higher peso cost of such fees, which are U.S. dollar-denominated.
Moreover, in the first quarter of 2009 the Company borrowed under this credit
facility an aggregate principal amount of Ps. 200 million in connection with
the transaction described below under 'Recent Events,' and the loan began
accruing interest on March 26, 2009 at a fixed rate of 13.0% per annum. The
Company will repay principal under this loan in 20 quarterly installments
through 2014.
Income before income taxes in the first quarter of 2009 totaled
Ps. 20,366,000, a substantial increase compared to Ps. 1,141,000 in the first
quarter of 2008, primarily as a result of the increase in broadcasting
revenue.
The Company recorded income taxes of Ps. 5,703,000 in the first quarter
2009, compared to Ps. 331,000 in the first quarter 2008, due to higher taxable
income.
As a result of the foregoing, the Company's net income in the first
quarter of 2009 reached Ps. 14,663,000, compared to Ps. 810,000 in the first
quarter of 2008.
Recent Events
On April 3, 2009, the Company entered into a local marketing agreement
(the 'LMA') with Emmis Communications Corporation ('Emmis'), a U.S. radio
broadcasting company. Under the LMA, the Company will provide programming to,
and sell advertising time on, KMVN-FM, a radio station broadcasting in Los
Angeles, California on the 93.9 FM frequency, for up to seven years.
