CONFORMED
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, 2004 Commission File Number 1-12090
GRUPO RADIO CENTRO, S.A. de C.V.
(Translation of Registrant's name into English)
Constituyentes 1154, Piso 7
Col. Lomas Altas, Mexico 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 ___
(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 ___ No X
(If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b). 82- .)
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. de C.V.
(Registrant)
Date: April 27, 2004 By: /s/ Pedro Beltran Nasr
------------------------------
Name: Pedro Beltran Nasr
Title: Chief Financial Officer
[LOGO] GRUPO
RADIO
CENTRO
Earnigs Release
IR Contacts:
In Mexico:
Pedro Beltran/Alfredo Azpeitia
Grupo Radio Centro, S.A. de C.V.
Tel: 5255-57-28-48 81 or
5255-57 28-49-11
In New York
Maria Barona
Melanie Carpenter
i-advize Corporate
Communications, Inc.
Tel: (212) 406-3690
Email: grc@-advize.com
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For Immediate Release
April 27, 2004
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Grupo Radio Centro Reports First Quarter 2004 Results
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Mexico City, April 27, 2004 - Grupo Radio Centro, S.A. 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 three months ended
March 31, 2004. All figures were prepared in accordance with generally accepted
accounting principles in Mexico and have been restated in constant pesos as of
March 31, 2004.
For the first quarter of 2004, broadcasting revenue was Ps. 116,640,000,
representing a decrease of 40.5% compared to Ps. 196,198,000 reported for the
same period of 2003. This decrease in broadcasting revenue was mainly
attributable to advertising expenditures from political parties during the first
quarter of 2003 in connection with the congressional elections that were held in
July 2003.
The Company's broadcasting expenses (excluding depreciation, amortization and
corporate, general and administrative expenses) during the first quarter of 2004
were Ps. 112,572,000, representing a decrease of 2.8% compared to Ps.
115,850,000 reported for the same period of 2003.
For the first quarter ended March 31, 2004, the Company reported broadcasting
income (i.e., broadcasting revenue minus broadcasting expenses, excluding
depreciation, amortization and corporate, general and administrative expenses)
of Ps. 4,068,000, compared to a broadcasting income of Ps. 80,348,000 reported
for the same period in 2003. This decline was mainly attributable to the
decrease in broadcasting revenue.
Depreciation and amortization for the first quarter of 2004 amounted Ps.
23,369,000, a 20.7% decrease as compared to Ps. 29,473,000 reported for the same
period of 2003. This reduction was mainly due to the write-off of goodwill in
connection with a certain subsidiary of the Company during the fourth quarter of
2003.
For the first quarter of 2004, the Company's corporate, general and
administrative expenses were Ps. 7,328,000, compared to Ps. 11,722,000 reported
for the same period of 2003, this decrease of 37.5% was mainly due to lower fees
paid in connection with the production of the radio news program Monitor as a
result of the cancellation of the contract with Infored during the first quarter
of 2004.
Primarily as a result of the decrease in broadcasting income, the Company
reported operating loss of Ps. 26,629,000 for the first quarter of 2004, as
compared to an operating income of Ps. 39,153,000 reported for the same period
of 2003.
The Company's comprehensive financing cost during the first quarter of 2004, was
Ps. 3,422,000, a decrease of 73.8% compared to a comprehensive financing cost of
Ps. 13,074,000 reported for the same period of 2003. This favorable change was
primarily attributable to a foreign exchange gain, net of Ps. 1,661,000 for the
first quarter of 2004 compared to a foreign exchange loss, net, of Ps. 7,194,000
reported for the same period of 2003.
During the period ended March 31, 2004, other expenses, net, were Ps.
10,247,000, compared to Ps. 17,871,000 reported for the same period in 2003.
This decrease of 42.7% is primarily attributable to severance payments made in
the first quarter of 2003 in connection with personnel reductions, as well as
lower expenses related to the arbitration proceedings with Infored during the
first quarter of 2004.
The Company reported a loss before provisions for income tax and employee profit
sharing of Ps. 40,298,000 during the first quarter of 2004, compared to a gain
before provisions for income tax and employee profit sharing of Ps. 8,208,000
reported for the same period of 2003.
Primarily due to the loss before provisions, the Company recorded no provisions
for income tax and employee profit sharing for the first quarter of 2004.
As a result of the foregoing, the Company's net loss for the first quarter of
2004 was Ps. 40,298,000, compared to net income of Ps. 8,208,000 reported for
same period of 2003.
Other Matters:
On March 3, 2004, before the opening of the exchange markets, the Company
announced the final decision in the arbitration proceeding by which the Company
will probably award Infored US$ 21 million. The Company will challenge the
validity of this decision in the Mexican courts. Pending this challenge, the
Company will seek a stay of the enforcement of the damage award.
On March 3, 2004, after the closing of the exchange markets, the Company
announced that it discontinued production of the Infored-produced news program.
The Company believes that any resulting reduction in advertising revenue will be
more than offset by a reduction in programming costs.
On April 20, 2004, the Company announced that it filed with the Mexican Banking
and Securities Commission (CNBV) its 2003 audited financial statements, upon
approval of the Annual
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Shareholders' Meeting held on April 6, 2004, which included a contingent
liability of US$21 million and a net loss of Ps. 245.8 million, related to the
award of damages in the arbitration proceeding.
From March 31, 2003 to March 31, 2004, the Company decreased its total bank debt
by approximately Ps. 95.2 million, from Ps. 321.7 million to Ps. 226.5 million.
At December 31, 2003 and March 31, 2004, the Company was not in compliance with
certain financial covenants under the loan agreement related to this bank debt.
The Company has informed the lender of this matter and has requested the
appropriate waivers.
Company Description:
Grupo Radio Centro owns and/or operates 14 radio stations, 11 of which are
located in Mexico City. 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. The Company also operates Grupo RED radio stations and
Organizacion Impulsora de Radio (OIR), a radio network which acts as the
national sales representative for, and provides programming to, Grupo Radio
Centro-affiliated radio stations.
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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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GRUPO RADIO CENTRO, S.A. de C.V.
CONSOLIDATED UNAUDITED BALANCE SHEETS
as of March 31, 2004 and 2003
in Mexican Pesos ("Ps.") with purchasing power as of March 31, 2004
(figures in thousands of Ps. and U.S. dollars ("U.S. $")(1),
except per Share and per ADS amounts)
--------------------------------------------------------------------------------
March 31
-------------------------------------------------
2004 2003
U.S. $(1) Ps. Ps.
---------------------------- ------------
ASSETS
------
Current assets:
Cash and temporary investments 8,645 96,426 103,874
-------- ---------- ----------
Accounts receivable:
Broadcasting, net 14,078 157,024 199,920
Other 622 6,940 9,456
Income tax recoverable 972 10,839 0
-------- ---------- ----------
15,672 174,803 209,376
Guarantee deposit 517 5,763 7,218
Prepaid expenses 690 7,692 16,616
-------- ---------- ----------
Total current assets 25,524 284,684 337,084
Prepaid expenses 0 0 106,777
Property and equipment, net 42,512 474,177 494,345
Deferred charges, net 1,091 12,165 17,996
Guarantee deposit 0 0 6,015
Excess of cost over book value of subsidiaries 67,963 758,058 834,499
Other assets 282 3,161 3,279
-------- ---------- ----------
Total assets 137,372 1,532,245 1,799,995
======== ========== ==========
LIABILITIES
-----------
Current:
Notes payable 5,076 56,618 156,298
Advances from customers 5,211 58,123 77,620
Other accounts payable and accrued expenses 6,013 67,068 65,299
Taxes payable 1,560 17,400 21,249
Contingent Liabilities 21,016 234,410 0
-------- ---------- ----------
Total current liabilities 38,876 433,619 320,466
Long-Term:
Deferred income tax 2,303 25,688 59,500
Notes payable 15,228 169,855 165,427
Reserve for labor obligations 2,506 27,951 27,573
-------- ---------- ----------
Total liabilities 58,913 657,113 572,966
-------- ---------- ----------
STOCKHOLDERS' EQUITY
--------------------
Capital stock 97,511 1,087,641 1,088,516
Retained earnings (14,690) (163,853) 186,984
Provision for repurchase of shares 3,445 38,425 38,602
Accumulated effect of deferred income tax (8,246) (91,980) (91,980)
Surplus on restatement of capital 394 4,397 4,397
Minority interest 45 502 510
-------- ---------- ----------
Total stockholders' equity 78,459 875,132 1,227,029
-------- ---------- ----------
Total liabilities and stockholders' equity 137,372 1,532,245 1,799,995
======== ========== ==========
(1) Peso amounts have been translated into U.S. dollars, solely for the
convenience of the reader, at the rate of Ps. 11.154 per U.S. dollar, the
noon buying rate for Mexican pesos on March 31, 2004.
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GRUPO RADIO CENTRO, S.A. DE C.V.
CONSOLIDATED UNAUDITED STATEMENTS OF INCOME
for the three-month period ended March 31, 2004 and 2003 expressed
in Mexican Pesos ("Ps.") with purchasing power as of March 31, 2004
(figures in thousands of Ps. and U.S. dollars ("U.S. $")(1),
except per Share and per ADS amounts)
--------------------------------------------------------------------------------
March 31
-------------------------------------------
2004 2003
U.S.$ (1) Ps. Ps.
------------------------- ---------
Broadcasting revenue (2) 10,457 116,640 196,198
Broadcasting expenses, excluding depreciation,
amortization and corporate expenses 10,093 112,572 115,850
-------- -------- --------
Broadcasting income 364 4,068 80,348
-------- -------- --------
Depreciation and amortization 2,095 23,369 29,473
Corporate general and administrative expenses 657 7,328 11,722
-------- -------- --------
Operating income (loss) (2,388) (26,629) 39,153
-------- -------- --------
Comprehensive financing cost:
Interest expense (571) (6,365) (8,156)
Interest income (2) 15 172 480
Foreign exchange gain (loss), net 149 1,661 (7,194)
Gain on monetary position 100 1,110 1,796
-------- -------- --------
(307) (3,422) (13,074)
Other expenses, net (919) (10,247) (17,871)
-------- -------- --------
Income (loss) before the following provisions (3,614) (40,298) 8,208
Provisions for income tax & employee profit
sharing -- -- --
-------- -------- --------
Net income (loss) (3,614) (40,298) 8,208
Net income applicable to:
Majority interest (3,613) (40,286) 8,206
Minority interest (1) (12) 2
-------- --------
(3,614) (40,298) 8,208
======== ======== ========
Net income for the LTM per Series A Share (3) ($ 0.164) (1.833) 0.375
Net income for the LTM per ADS (3) ($ 1.479) (16.501) 3.372
Weighted average common shares outstanding for the LTM (000's) (3) 162,685 163,763
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(1) Peso amounts have been translated into U.S. dollars, solely for the
convenience of the reader, at the rate of Ps. 11.154 per U.S. dollar, the
noon buying rate for Mexican pesos on March 31, 2004.
(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 first quarter
of 2004 and 2003 was Ps. 550,000 and Ps. 109,000, 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.
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