Securities
and Exchange Commission
Washington,
D.C. 20549
FORM
6-K
Report
of Foreign Issuer
Pursuant
To Rule 13a-16 or 15d-16
of
The Securities Exchange Act of 1934
| For the month of October, 2009 |
Commission File
Number 1-12090
|
GRUPO
RADIO CENTRO, S.A.B. de C.V.
(Translation
of Registrant’s name into English)
Constituyentes
1154, Piso 7
Col.
Lomas Altas, México D.F. 11954
(Address
of principal office)
(Indicate
by check mark whether the registrant files or will file annual reports under
cover of Form 20-F or Form 40-F.)
(Check
One) Form 20-F
x Form 40-F o
(Indicate
by check mark whether the registrant by furnishing the information contained in
this Form is also thereby furnishing information to the Commission pursuant to
Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
(Check
One) Yeso Nox
(If “Yes”
is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b). 82- .)
For
Immediate Release
October
26, 2009
Grupo
Radio Centro Reports Results for Third Quarter and First Nine Months of
2009
Mexico
City, October 26, 2009 - 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 third quarter and
nine months ended September 30, 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.
Third
Quarter Results
Broadcasting
revenue for the third quarter of 2009 was Ps. 191,215,000, 5.3% lower than
the Ps. 201,892,000 reported for the third quarter of 2008. This decline
was mainly attributable to lower advertising expenditures by the Company’s
clients in Mexico during the third quarter of 2009 compared to the same period
of 2008, as a result of a weakening of the Mexican economy. The
decline in advertising expenditures by Mexican clients was partially offset by
broadcasting revenue from the Los Angeles radio station, KXOS-FM. In
April 2009, the Company began to
sell advertising time on KXOS-FM pursuant to a local marketing agreement
with Emmis Communications Corporations (the “LMA”).
The
Company’s broadcasting expenses (excluding depreciation, amortization and
corporate, general and administrative expenses) for the third quarter of 2009
were Ps. 178,278,000, 55.5% higher than the Ps. 114,671,000 reported
for the third quarter of 2008. This increase was primarily due to (i)
broadcasting expenses incurred in connection with KXOS-FM, and (ii) the
reclassification in the third quarter of 2009 of certain amounts paid under the
LMA as broadcasting expenses (which had been classified in the second quarter of
2009 as other expenses).
For the
third quarter of 2009, the Company reported broadcasting income (i.e.,
broadcasting revenue minus broadcasting expenses, excluding depreciation,
amortization and corporate, general and administrative expenses) of
Ps. 12,937,000, 85.2% lower than the Ps. 87,221,000 reported for the
third quarter of 2008. This decrease in broadcasting income was mainly
attributable to the decrease in broadcasting revenue and the increase in
broadcasting expenses, as described above.
Depreciation
and amortization expenses for the third quarter of 2009 were Ps. 6,404,000,
20.4% lower than the Ps. 8,044,000 reported for the third quarter of 2008,
as a result of a reduction in the amount of the Company’s depreciable
assets.
The
Company’s corporate, general and administrative expenses for the third quarter
of 2009 were Ps. 2,808,000, a slight increase compared to
Ps. 2,700,000 reported for the third quarter of 2008.
The
Company reported operating income of Ps. 3,725,000 for the third quarter of
2009, 95.1% lower than the Ps. 76,477,000 reported for the third quarter of
2008. This decrease was due to lower broadcasting revenue and higher
broadcasting expenses during the third quarter of 2009 compared to the third
quarter of 2008, as described above.
During
the third quarter of 2009, other income, net, was Ps. 944,000, compared to
other expenses, net, of Ps. 14,896,000 reported for the third quarter of
2008. This variation was mainly attributable to the reclassification of certain
amounts paid under the LMA from other expenses to broadcasting expenses, as
described above.
The
Company’s comprehensive financing cost for the third quarter of 2009 was
Ps. 861,000, 36.0% lower than the Ps. 1,346,000 reported for the third
quarter of 2008. This decline was mainly attributable to a gain of
Ps. 5,193,000 on net foreign currency exchange due to the appreciation of the
peso against the U.S. dollar in the third quarter of 2009. The
decline in comprehensive financing cost was partially offset by interest expense
paid in connection with the Company’s loan from Banco Inbursa to fund amounts
payable under the LMA.
For the
third quarter of 2009, the Company recorded income before taxes of
Ps. 3,808,000, compared to Ps. 60,235,000 reported for the third
quarter of 2008, primarily as a result of higher broadcasting expenses during
the third quarter of 2009, as described above.
The
Company recorded income taxes of Ps. 11,027,000 in the third quarter of
2009, 36.7% lower than the Ps. 17,413,000 recorded in the third quarter of
2008. This decline was due to lower taxable income in the third quarter of 2009
compared to the same period of 2008.
As a
result of the foregoing, the Company recorded a net loss for the third quarter
of 2009 of Ps. 7,219,000, compared to net income of Ps. 42,822,000 in
the third quarter of 2008.
Nine-Month
Results
For the
nine months ended September 30, 2009, broadcasting revenue was
Ps. 524,996,000, 4.2% higher than the Ps. 503,763,000 reported for the
same period of 2008. The increase in broadcasting revenue was mainly
attributable to higher advertising expenditures by the Company’s clients during
the first nine months of 2009 compared to the same period in 2008 and to
revenues from Los Angeles radio station, KXOS-FM, on which the Company began
selling advertising time in April 2009.
The
Company’s broadcasting expenses (excluding depreciation, amortization and
corporate, general and administrative expenses) for the first nine months of
2009 were Ps. 422,128,000, 28.9% higher than the Ps. 327,508,000
reported for the same period of 2008. This increase was primarily due to (i)
broadcasting expenses incurred in connection with the KXOS-FM, beginning in
April 2009; (ii) the reclassification, in the third quarter of 2009, of certain
amounts paid under the LMA as broadcasting expenses; and (iii) higher sales
commissions as a result of the increase in broadcasting revenue during
2009.
Broadcasting
income (i.e., broadcasting revenue minus broadcasting expenses, excluding
depreciation, amortization and corporate, general and administrative expenses)
for the first nine months of 2009 was Ps. 102,868,000, 41.6% lower than the
Ps. 176,255,000 reported for the same period of 2008. This decrease was
mainly attributable to the increase in broadcasting expenses, as described
above.
Depreciation
and amortization expenses for the first nine months of 2009 were
Ps. 19,558,000, 17.7% lower than the Ps. 23,776,000 reported for the
same period of 2008, as a result of a reduction in the amount of the Company’s
depreciable assets.
The
Company’s corporate, general and administrative expenses for the first nine
months of 2009 were Ps. 10,365,000, slightly higher than the
Ps. 10,000,000 reported for the same period of 2008.
As a
result of the foregoing, the Company recorded operating income of
Ps. 72,945,000 for the first nine months of 2009, 48.8% lower than the Ps.
142,479,000 reported for the same period of 2008.
Other
expenses, net, for the first nine months of 2009 were Ps. 45,800,000, 16.4%
higher than the Ps. 39,341,000 reported for the same period of 2008. This
increase was mainly attributable to higher legal expenses incurred in
connection with the LMA.
The Company’s comprehensive
financing cost for the first nine months of 2009 was Ps. 26,643,000,
compared to Ps. 5,853,000 reported for the same period of 2008. This change
was mainly due to (i) interest expense related to the Company’s loan from Banco
Inbursa, S.A. and (ii) higher foreign exchange loss, net, attributable to the
depreciation of the peso against the U.S. dollar, which results in a decrease in
the peso value of the Company’s U.S. dollar denominated loan to a U.S.
subsidiary.
For the
first nine months of 2009, the Company recorded income before taxes of
Ps. 502,000, compared to Ps. 97,285,000 reported for the same period
of 2008, mainly due to the aforementioned increases in broadcasting expenses and
comprehensive financing cost.
The
Company recorded income taxes of Ps. 21,345,000 for the first nine months
of 2009, compared to Ps. 28,213,000 reported for the same period of 2008,
primarily due to lower taxable income.
As a
result of the foregoing, the Company recorded a net loss of Ps. 20,843,000
for the first nine months of 2009, compared to net income of Ps. 69,072,000
reported for the same period 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 Organización Radio Centro radio
stations, the Company also operates Grupo RED radio stations and Organización
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 or 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.
|
|
RI
Contacts
In
México:
Pedro
Beltrán / 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 September 30, 2009 and 2008
|
||
|
(figures
in thousands of Mexican pesos ("Ps.") and U.S. dollars ("U.S.
$") (1)
|
||
|
September
30,
|
||
|
2009
|
2008
|
|||||||||||
| $ |
U.S.(1)
|
Ps.
|
Ps.
|
|||||||||
|
ASSETS
|
||||||||||||
|
Current
assets:
|
||||||||||||
|
Cash
and temporary investments
|
5,257 | 70,988 | 105,185 | |||||||||
|
Accounts
receivable:
|
||||||||||||
|
Broadcasting,
net
|
16,487 | 222,642 | 182,716 | |||||||||
|
Other
|
2,378 | 32,119 | 8,029 | |||||||||
| 18,865 | 254,761 | 190,745 | ||||||||||
|
Prepaid
expenses
|
8,419 | 113,688 | 17,154 | |||||||||
|
Deferred
taxes
|
5 | 72 | 0 | |||||||||
|
Total
current assets
|
32,546 | 439,509 | 313,084 | |||||||||
|
Property
and equipment, net
|
34,517 | 466,107 | 462,108 | |||||||||
|
Prepaid
expenses
|
3,792 | 51,208 | 0 | |||||||||
|
Deferred
charges, net
|
275 | 3,717 | 5,249 | |||||||||
|
Excess
of cost over book value of net assets of subsidiaries, net
|
61,378 | 828,863 | 828,863 | |||||||||
|
Other
assets
|
247 | 3,340 | 3,325 | |||||||||
|
Total
assets
|
132,755 | 1,792,744 | 1,612,629 | |||||||||
|
LIABILITIES
|
||||||||||||
|
Current:
|
||||||||||||
|
Notes
payable
|
2,366 | 31,950 | 0 | |||||||||
|
Advances
from customers
|
6,114 | 82,567 | 73,895 | |||||||||
|
Suppliers
and other accounts payable
|
5,385 | 72,725 | 72,276 | |||||||||
|
Taxes
payable
|
2,314 | 31,242 | 24,267 | |||||||||
|
Total
current liabilities
|
16,179 | 218,484 | 170,438 | |||||||||
|
Long-Term:
|
||||||||||||
|
Notes
payable
|
11,108 | 150,000 | 0 | |||||||||
|
Reserve
for labor liabilities
|
4,785 | 64,614 | 61,377 | |||||||||
|
Deferred
taxes
|
0 | 0 | 4,813 | |||||||||
|
Total
liabilities
|
32,072 | 433,098 | 236,628 | |||||||||
|
SHAREHOLDERS' EQUITY
|
||||||||||||
|
Capital
stock
|
83,708 | 1,130,410 | 1,130,409 | |||||||||
|
Cumulative
earnings
|
12,818 | 173,095 | 201,050 | |||||||||
|
Reserve
for repurchase of shares
|
3,246 | 43,837 | 43,840 | |||||||||
|
Accumulated
Effect by Conversion
|
(103 | ) | (1,393 | ) | 0 | |||||||
|
Minority
interest
|
1,014 | 13,697 | 702 | |||||||||
|
Total
shareholders' equity
|
100,683 | 1,359,646 | 1,376,001 | |||||||||
|
Total
liabilities and Shareholders' equity
|
132,755 | 1,792,744 | 1,612,629 | |||||||||
|
(1) Peso
amounts have been translated into U.S. dollars, solely for the convenience
of the reader, at the rate of Ps. 13.5042 per U.S. dollar,
the rate on September 30,
2009.
|
||||||||||||
|
GRUPO
RADIO CENTRO, S.A.B. DE C.V.
|
||||
|
CONSOLIDATED
UNAUDITED STATEMENTS OF INCOME
|
||||
|
for
the three-month and nine-month periods ended September 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)
|
||||
|
3rd
Quarter
|
Accumulated
9
months
|
|||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||||||||||
| $ | U.S. | (1) |
Ps.
|
Ps.
|
$ | U.S. | (1) |
Ps.
|
Ps.
|
|||||||||||||||
|
Broadcasting
revenue (2)
|
14,160 | 191,215 | 201,892 | 38,876 | 524,996 | 503,763 | ||||||||||||||||||
|
Broadcasting
expenses, excluding depreciation,
|
||||||||||||||||||||||||
|
amortization
and corporate, general and administrative expenses
|
13,202 | 178,278 | 114,671 | 31,259 | 422,128 | 327,508 | ||||||||||||||||||
|
Broadcasting
income
|
958 | 12,937 | 87,221 | 7,617 | 102,868 | 176,255 | ||||||||||||||||||
|
Depreciation
and amortization
|
474 | 6,404 | 8,044 | 1,448 | 19,558 | 23,776 | ||||||||||||||||||
|
Corporate,
general and administrative expenses
|
208 | 2,808 | 2,700 | 768 | 10,365 | 10,000 | ||||||||||||||||||
|
Operating
income
|
276 | 3,725 | 76,477 | 5,401 | 72,945 | 142,479 | ||||||||||||||||||
|
Other
income (expenses), net
|
70 | 944 | (14,896 | ) | (3,392 | ) | (45,800 | ) | (39,341 | ) | ||||||||||||||
|
Comprehensive
financing cost:
|
||||||||||||||||||||||||
|
Interest
expense
|
(448 | ) | (6,054 | ) | (1,435 | ) | (1,243 | ) | (16,790 | ) | (6,100 | ) | ||||||||||||
|
Interest
income (2)
|
0 | 0 | 0 | 14 | 195 | 262 | ||||||||||||||||||
|
Gain
(loss) on foreign currency exchange, net
|
385 | 5,193 | 89 | (744 | ) | (10,048 | ) | (15 | ) | |||||||||||||||
| (63 | ) | (861 | ) | (1,346 | ) | (1,973 | ) | (26,643 | ) | (5,853 | ) | |||||||||||||
|
Income
before income taxes
|
283 | 3,808 | 60,235 | 36 | 502 | 97,285 | ||||||||||||||||||
|
Income
taxes
|
817 | 11,027 | 17,413 | 1,581 | 21,345 | 28,213 | ||||||||||||||||||
|
Net
(loss) income
|
(534 | ) | (7,219 | ) | 42,822 | (1,545 | ) | (20,843 | ) | 69,072 | ||||||||||||||
|
Net
(loss) income applicable to:
|
||||||||||||||||||||||||
|
Majority
interest
|
713 | 9,619 | 42,812 | 1,130 | 15,277 | 69,047 | ||||||||||||||||||
|
Minority
interest
|
(1,247 | ) | (16,838 | ) | 10 | (2,675 | ) | (36,120 | ) | 25 | ||||||||||||||
| (534 | ) | (7,219 | ) | 42,822 | (1,545 | ) | (20,843 | ) | 69,072 | |||||||||||||||
|
Net
income per Series A Share (3)
|
0.033 | 0.4483 | 0.7036 | |||||||||||||||||||||
|
Net
income per ADS (3)
|
0.297 | 4.0347 | 6.3324 | |||||||||||||||||||||
|
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. 13.5042 per U.S. dollar, the rate on
September 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 third quarter of 2009 and 2008 was Ps. 1,051,000 and
Ps. 2,169,000, respectively. Interest earned and treated as broadcasting
revenue for the nine months ended September 30, 2009 and 2008 was Ps.
3,620,000 and Ps. 4,380,000,
respectively.
|
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|
|
||||||||||||||||||||||||
|
(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.
|
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|
|
||||||||||||||||||||||||
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
|
Grupo
Radio Centro, S.A.B. de C.V.
(Registrant)
|
|||
|
Date:
October 26, 2009
|
By:
|
/s/ Pedro Beltrán Nasr | |
| Name: Pedro Beltrán Nasr | |||
| Title: Chief Financial Officer | |||