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 April, 2010
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Commission
File Number 1-12090
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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) Yes o No x
(If “Yes”
is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b). 82-_____.)
For
Immediate Release
April
26, 2010
Grupo
Radio Centro Reports First Quarter 2010 Results
Mexico
City, April 26, 2010 - 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, 2010. 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 2010 was Ps. 166,281,000, 6.7% higher than
Ps. 155,791,000 in the first quarter of 2009. This increase was attributable to
broadcasting revenue from our radio station KXOS-FM in Los Angeles, California,
which we began operating in the second quarter of 2009.
The
Company’s broadcasting expenses (excluding depreciation, amortization and
corporate, general and administrative expenses) in the first quarter of 2010
totaled Ps. 160,783,000, a 43.4% increase compared to Ps. 112,150,000
in the first quarter of 2009. This increase was attributable to
broadcasting expenses incurred in connection with KXOS-FM.
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 2010 was Ps. 5,498,000, an
87.4% decrease compared to Ps. 43,641,000 in the first quarter of
2009. This decrease was attributable to the increase in broadcasting
expenses as described above.
Depreciation
and amortization expenses in the first quarter of 2010 were Ps. 6,144,000,
a 6.1% decrease compared to Ps. 6,540,000 in the first quarter of
2009. 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
2010 totaled Ps. 3,778,000, compared to Ps. 3,778,000 in the first
quarter 2009.
For the
first quarter of 2010 the Company reported an operating loss of
Ps. 4,424,000, compared to an operating income of Ps. 33,323,000 in
the first quarter of 2009, mainly due to the increase in broadcasting expenses
as described above.
For the
first quarter of 2010, other expenses, net, were of Ps. 13,455,000, an
increase of 13.2% compared to Ps. 11,885,000 in the first quarter 2009.
This increase was mainly due to fees paid to HSBC México, S.A., as the common
representative of the Company’s CPO (ordinary participation certificates)
holders.
The
Company’s comprehensive financing cost in the first quarter of 2010 increased to
Ps. 7,360,000 from Ps. 1,072,000 in the first quarter of
2009. This increase was mainly attributable to the interest expense
paid in the first quarter of 2010.
Grupo
Radio Centro, S.A.B. de C.V.
First
Quarter 2010 Results
The
Company reported a loss before income taxes in the first quarter of 2010 of Ps.
25,239,000, compared to income of Ps. 20,366,000 in the first quarter of 2009,
primarily as a result of the increase in broadcasting expenses.
The
Company recorded income taxes of Ps. 2,358,000 in the first quarter 2010,
compared to Ps. 5,703,000 in the first quarter 2009 due to a decrease in
taxable income.
As a
result of the foregoing, the Company’s net loss in the first quarter of 2010 was
Ps. 27,597,000, compared to net income of Ps. 14,663,000 in the first
quarter of 2009.
Recent
Events
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·
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On
March 18 2010, the Company renegotiated the interest rate of the credit
facility with Banco Inbursa, S.A. from a fixed annual rate of 13% to a
fixed annual rate of 9.5%.
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|
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·
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On
March 16, 2010, in the Annual Stockholders Meeting, the shareholders
approved, in accordance with the recommendation of the Company’s Board of
Directors, a dividend payment to all shareholders from retained earnings
for fiscal year 2009 in the amount of Ps. 100,000,000, or approximately
Ps. 0.6145 per each of the 162,724,561 Series A Shares outstanding. The
dividend was paid in one disbursement on March 24,
2010.
|
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.
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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.
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IR
Contacts
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In
México:
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In
NY:
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Pedro
Beltrán / Alfredo Azpeitia
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Maria
Barona / Peter Majeski
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Grupo
Radio Centro, S.A.B. de C.V.
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i-advize
Corporate Communications, Inc.
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Tel:
(5255) 5728-4800 Ext. 7018
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Tel:
(212) 406-3690
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aazpeitia@grc.com.mx
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grc@i-advize.com.mx
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2
Grupo
Radio Centro, S.A.B. de C.V.
First
Quarter 2010 Results
|
GRUPO
RADIO CENTRO, S.A.B. DE C.V.
CONSOLIDATED
UNAUDITED BALANCE SHEET
as
of March 31, 2010 and 2009
(figures
in thousands of Mexican pesos ("Ps.") and U.S. dollars ("U.S. $")(1)
)
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March
31
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||||||||||||
|
2010
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2009
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|||||||||||
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U.S. $(1)
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Ps.
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Ps.
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||||||||||
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ASSETS
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||||||||||||
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Current
assets:
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||||||||||||
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Cash
and temporary investments
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2,814 | 35,071 | 347,183 | |||||||||
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Accounts
receivable:
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||||||||||||
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Broadcasting,
net
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16,157 | 201,376 | 194,848 | |||||||||
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Other
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678 | 8,446 | 8,008 | |||||||||
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Prepaid
taxes
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0 | 0 | 2,672 | |||||||||
| 16,835 | 209,822 | 205,528 | ||||||||||
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Prepaid
expenses
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8,886 | 110,754 | 34,391 | |||||||||
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Total
current assets
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28,535 | 355,647 | 587,102 | |||||||||
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Property
and equipment, net
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36,361 | 453,203 | 470,810 | |||||||||
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Prepaid
expenses
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292 | 3,636 | 0 | |||||||||
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Deferred
charges, net
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217 | 2,704 | 4,478 | |||||||||
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Excess
of cost over book value of net assets of subsidiaries, net
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66,501 | 828,863 | 828,863 | |||||||||
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Other
assets
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269 | 3,353 | 3,325 | |||||||||
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Total
assets
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132,175 | 1,647,406 | 1,894,578 | |||||||||
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LIABILITIES
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||||||||||||
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Current:
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||||||||||||
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Short-term
debt
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3,257 | 40,591 | 30,433 | |||||||||
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Advances
from customers
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7,688 | 95,820 | 99,652 | |||||||||
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Suppliers
and other accounts payable
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6,577 | 81,976 | 72,850 | |||||||||
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Taxes
payable
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2,799 | 34,891 | 6,022 | |||||||||
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Total
current liabilities
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20,321 | 253,278 | 208,957 | |||||||||
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Long-Term:
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||||||||||||
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Long-term
debt
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9,628 | 120,000 | 170,000 | |||||||||
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Reserve
for labor liabilities
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5,401 | 67,312 | 61,862 | |||||||||
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Deferred
taxes
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174 | 2,166 | 6,309 | |||||||||
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Total
liabilities
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35,524 | 442,756 | 447,128 | |||||||||
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SHAREHOLDERS'
EQUITY
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||||||||||||
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Capital
stock
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90,694 | 1,130,410 | 1,130,410 | |||||||||
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Cumulative
earnings
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3,899 | 48,595 | 272,457 | |||||||||
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Reserve
for repurchase of shares
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3,517 | 43,837 | 43,837 | |||||||||
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Accumulated
Effect by Conversion
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(1,484 | ) | (18,498 | ) | - | |||||||
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Majority
shareholders' equity
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96,626 | 1,204,344 | 1,446,704 | |||||||||
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Minority
interest
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25 | 306 | 746 | |||||||||
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Total
shareholders' equity
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96,651 | 1,204,650 | 1,447,450 | |||||||||
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Total
liabilities and shareholders' equity
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132,175 | 1,647,406 | 1,894,578 | |||||||||
(1) Peso
amounts have been translated into U.S. dollars, solely for the convenience of
the reader, at the rate of Ps. 12.464 per U.S. dollar, the rate on March 31,
2010.
3
Grupo
Radio Centro, S.A.B. de C.V.
First
Quarter 2010 Results
|
GRUPO
RADIO CENTRO, S.A.B. DE C.V.
CONSOLIDATED
UNAUDITED STATEMENT OF INCOME
for
the three-month periods ended March 31, 2010 and
2009
(figures
in thousands of Mexican pesos ("Ps.") and U.S. dollars ("U.S.
$")(1),
except per Share and per ADS
amounts)
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March
31
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||||||||||||
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2010
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2009
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|||||||||||
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U.S.$
(1)
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Ps.
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Ps.
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||||||||||
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Broadcasting revenue (2)
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13,341 | 166,281 | 155,791 | |||||||||
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Broadcasting
expenses, excluding depreciation,
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||||||||||||
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amortization
and corporate, general and administrative expenses
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12,900 | 160,783 | 112,150 | |||||||||
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Broadcasting
income
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441 | 5,498 | 43,641 | |||||||||
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Depreciation and
amortization
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493 | 6,144 | 6,540 | |||||||||
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Corporate,
general and administrative expenses
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303 | 3,778 | 3,778 | |||||||||
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Operating (loss)
income
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(355 | ) | (4,424 | ) | 33,323 | |||||||
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Other
expenses, net
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(1,080 | ) | (13,455 | ) | (11,885 | ) | ||||||
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Comprehensive
financing income (cost):
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||||||||||||
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Interest
expense
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(611 | ) | (7,620 | ) | (1,893 | ) | ||||||
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Interest income (2)
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1 | 9 | 32 | |||||||||
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Gain
(loss) on foreign currency exchange, net
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20 | 251 | 789 | |||||||||
| (590 | ) | (7,360 | ) | (1,072 | ) | |||||||
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(Loss)
income before income taxes
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(2,025 | ) | (25,239 | ) | 20,366 | |||||||
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Income
taxes
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189 | 2,358 | 5,703 | |||||||||
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Net
(loss) income
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(2,214 | ) | (27,597 | ) | 14,663 | |||||||
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Net
(loss) income applicable to:
|
||||||||||||
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Majority
interest
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(2,214 | ) | (27,600 | ) | 14,639 | |||||||
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Minority
interest
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0 | 3 | 24 | |||||||||
| (2,214 | ) | (27,597 | ) | 14,663 | ||||||||
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Net income (loss) per Series A
Share (3)
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0.008 | 0.0992 | 0.8637 | |||||||||
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Net income (loss) per ADS
(3)
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0.072 | 0.8928 | 7.7733 | |||||||||
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Weighted average common shares
outstanding (000's) (3)
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162,724 | 162,724 | ||||||||||
(1) Peso
amounts have been translated into U.S. dollars, solely for the convenience of
the reader, at the rate of Ps. 12.464 per U.S. dollar, the rate on March 31,
2010.
(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 2010 and 2009 was Ps. 920,000 and Ps.
1,348,000, 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.
4
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.
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Grupo
Radio Centro, S.A.B. de C.V.
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|||
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(Registrant)
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|||
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Date:
April 26, 2010
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By:
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/s/ Pedro Beltrán Nasr
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Name: Pedro
Beltrán Nasr
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Title: Chief
Financial Officer
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