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 February, 2009
|
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
|
 |
February
23, 2009
Grupo
Radio Centro Reports Fourth Quarter and Year- End Results for the period Ended
December 31, 2008
Mexico
City, February 23, 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 operation for the fourth quarter and
year ended December 31, 2008. 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.
Fourth
Quarter Results
Broadcasting
revenue for the fourth quarter of 2008 was Ps. 231,342,000, representing an
increase of 15.0% compared to the Ps. 201,177,000 reported in the fourth
quarter of 2007. This increase was mainly attributable to higher advertising
expenditures by the Company’s clients, who purchased more airtime in the fourth
quarter of 2008 compared to the same period of 2007. This was a
result of a highly competitive environment, in which the Company sought to gain
market share by offering attractive sales packages, as well as increasing the
size of the Company’s sales force.
The
Company’s broadcasting expenses (excluding depreciation, amortization and
corporate, general and administrative expenses) for the fourth quarter of 2008
were Ps. 124,842,000, representing an increase of 17.9% compared to the
Ps. 105,869,000 reported in the fourth quarter of 2007. This increase was
primarily due to increased expenses related to expanded advertising campaigns
undertaken by the Company during the fourth quarter of 2008 and higher sales
commissions paid to the Company’s sales force as a result of the increase in
advertising sales. In addition, we had an increase in costs payable
in U.S. dollars due to the depreciation of the Mexican peso against the U.S.
dollar in the fourth quarter of 2008, specifically with regard to the five-year
renewal of our agreement to operate XHFO-FM and the rental payments related to
such operation.
For the
fourth quarter of 2008, the Company reported broadcasting income (i.e.,
broadcasting revenue minus broadcasting expenses, excluding depreciation,
amortization and corporate, general and administrative expenses) of
Ps. 106,500,000, an 11.7% increase compared to the Ps. 95,308,000
reported in the fourth quarter of 2007. This increase in broadcasting income was
mainly attributable to the increase in broadcasting revenue described
above.
Depreciation
and amortization expenses for the fourth quarter of 2008 were
Ps. 7,944,000, a 2.9% increase compared to the Ps. 7,720,000 reported
in the fourth quarter of 2007.
The
Company’s corporate, general and administrative expenses were Ps. 4,461,000
in the fourth quarter of 2008, a decrease of 6.8% compared to the
Ps. 4,789,000 reported in the fourth quarter of 2007.
Grupo
Radio Centro, S.A.B. de C.V.
Fourth
Quarter 2008 and Year-end Results
The
Company reported operating income of Ps. 94,095,000 in the fourth quarter
of 2008, a 13.6% increase compared to the Ps. 82,799,000 in operating
income reported in the fourth quarter of 2007. This increase was due to the
increased broadcasting revenue during the fourth quarter 2008 compared to the
fourth quarter of 2007, as described above.
During
the fourth quarter of 2008, other expenses, net, were Ps. 17,539,000, a
27.6% increase compared to the Ps. 13,743,000 reported in the fourth
quarter of 2007. This increase was mainly attributable to higher legal expenses during the fourth
quarter of 2008 compared
to the same period of 2007.
The
Company’s comprehensive financing cost in the fourth quarter of 2008 was
Ps. 1,825,000 compared to the Ps. 679,000 reported in the fourth
quarter of 2007. This increase was mainly attributable to higher fees payable in
U.S. dollars under our undrawn credit facility in the fourth quarter of 2008
compared to the fourth quarter of 2007
For the
fourth quarter of 2008, the Company reported income before taxes of
Ps. 74,731,000, an increase of 9.3% compared to the Ps. 68,377,000
reported in the fourth quarter of 2007, primarily from the increase in
broadcasting income during the fourth quarter of 2008, as described
above.
The
Company recorded income taxes of Ps. 17,038,000 in the fourth quarter of
2008, a decrease of 25.7% compared to the Ps. 22,923,000 recorded in the
fourth quarter of 2007 due to certain fiscal deductions taken for tax
purposes.
As a
result of the foregoing, the Company’s net income for the fourth quarter of 2008
was Ps. 57,693,000, an increase of 26.9% compared to net income of
Ps. 45,454,000 reported in the fourth quarter of 2007.
Twelve-Month
Results
For the
year ended December 31, 2008, broadcasting revenue was Ps. 735,105,000,
representing a 12.3% increase compared to the Ps. 654,760,000 reported in
the same period of 2007. The increase in broadcasting revenue was mainly
attributable to an increase in advertising expenditures by the Company’s
clients, who purchased more airtime during 2008 than 2007. This was
the result of a highly competitive environment, in which the Company sought to
gain market share by offering attractive sales packages, as well as increasing
the size of its sales force.
The
Company’s broadcasting expenses (excluding depreciation, amortization and
corporate, general and administrative expenses) for the year ended December 31,
2008 were Ps. 452,350,000, an increase of 7.2% compared to the Ps.
421,970,000 reported in 2007. This increase was primarily due to (i) expenses
related to extensive advertising campaigns undertaken by the Company; (ii)
higher sales commissions to the Company’s sales force, as a result of the
increase in broadcasting revenues; and (iii) higher expenses related to the
Company’s market research in 2008 compared to 2007.
Broadcasting
income (i.e., broadcasting revenue minus broadcasting expenses, excluding
depreciation, amortization and corporate, general and administrative expenses)
for the year ended December 31, 2008 was Ps. 282,755,000, an increase of
21.5% compared to the Ps. 232,790,000 reported 2007. This increase was
mainly attributable to the increase in broadcasting revenue, as described
above.
2
Grupo
Radio Centro, S.A.B. de C.V.
Fourth
Quarter 2008 and Year-end Results
Depreciation
and amortization expenses for the year ended December 31, 2008 were
Ps. 31,720,000, a decrease of 5.8% compared to the Ps. 33,687,000
reported in 2007. This decrease was due to the Company no longer recording
depreciation on certain Company assets whose useful lives have
ended.
The
Company’s corporate, general and administrative expenses for the year ended
December 31, 2008 were Ps. 14,461,000, a 2.1% decrease compared to the
Ps. 14,774,000 reported in 2007.
As a
result of the foregoing, the Company reported operating income of
Ps. 236,574,000 for the year ended December 31, 2008, a 28.3% increase
compared to the Ps. 184,329,000 reported in 2007.
Other
expenses, net, for the year ended December 31, 2008 were Ps. 56,880,000, a
24.2% increase compared to the Ps. 45,806,000 reported in 2007. This
increase was mainly attributable to higher legal expenses during 2008
compared to 2007.
The Company’s comprehensive
financing cost for 2008 was Ps. 7,678,000, a 31.2% increase compared to the
Ps. 5,850,000 reported in 2007. This increase was mainly due to fees paid
in connection with the amendment of the Company’s credit facility in
2008. The increase in comprehensive financing cost was partially
offset by the fact that the Company did not record a loss on its net monetary
position in 2008 (due to a change in MFRS regarding inflation accounting), as
compared to a loss on net monetary position of Ps. 3,477,000 recorded in
2007.
For the
year ended December 31, 2008, the Company reported income before taxes of
Ps. 172,016,000, a 29.7% increase compared to the Ps. 132,673,000
reported in 2007, mainly due to an increase in broadcasting revenue, as
described above.
The
Company recorded income taxes of Ps. 45,251,000 for the year ended December
31, 2008, compared to Ps. 41,554,000 recorded in 2007, primarily due to
higher taxable income.
As a
result of the foregoing, the Company reported net income of Ps. 126,765,000
for the year ended December 31, 2008, an increase of 39.1% compared to net
income of Ps. 91,119,000 reported in 2007.
3
Grupo
Radio Centro, S.A.B. de C.V.
Fourth
Quarter 2008 and Year-end Results
Company
Description
Grupo
Radio Centro owns and/or operates 14 radio stations. Of these 14 radio stations,
Grupo Radio Centro operates 11 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. 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, 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 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.
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RI
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.
|
|
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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4
Grupo
Radio Centro, S.A.B. de C.V.
Fourth
Quarter 2008 and Year-end Results
|
GRUPO
RADIO CENTRO, S.A.B. DE C.V.
CONSOLIDATED
AUDITED BALANCE SHEETS
as
of December 31, 2008 and 2007 (1)
(figures
in thousands of Mexican pesos ("Ps.") and U.S. dollars ("U.S. $") (2)
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December
31,
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||||||||||||
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2008
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2007
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|||||||||||
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U.S.
$ (2)
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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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6,727 | 93,054 | 167,011 | |||||||||
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Accounts
receivable:
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||||||||||||
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Broadcasting,
net
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21,768 | 301,101 | 195,707 | |||||||||
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Other
|
450 | 6,225 | 4,663 | |||||||||
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Prepaid
taxes
|
217 | 3,007 | 0 | |||||||||
| 22,435 | 310,333 | 200,370 | ||||||||||
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Prepaid
expenses
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2,760 | 38,179 | 33,360 | |||||||||
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Total
current assets
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31,922 | 441,566 | 400,741 | |||||||||
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Property
and equipment, net
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33,620 | 465,034 | 461,555 | |||||||||
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Deferred
charges, net
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351 | 4,850 | 6,047 | |||||||||
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Excess
of cost over book value of net assets of subsidiaries, net
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59,924 | 828,863 | 828,863 | |||||||||
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Other
assets
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240 | 3,325 | 3,239 | |||||||||
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Total
assets
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126,057 | 1,743,638 | 1,700,445 | |||||||||
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LIABILITIES
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||||||||||||
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Current:
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||||||||||||
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Advances
from customers
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10,305 | 142,543 | 124,418 | |||||||||
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Suppliers
and other accounts payable
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4,872 | 67,388 | 55,420 | |||||||||
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Taxes
payable
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1,363 | 18,859 | 50,847 | |||||||||
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Total
current liabilities
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16,540 | 228,790 | 230,685 | |||||||||
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Long-Term:
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||||||||||||
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Reserve
for labor liabilities
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4,358 | 60,276 | 58,605 | |||||||||
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Deferred
taxes
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1,575 | 21,782 | 5,130 | |||||||||
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Total
liabilities
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22,473 | 310,848 | 294,420 | |||||||||
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SHAREHOLDERS'
EQUITY
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||||||||||||
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Capital
stock
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81,724 | 1,130,410 | 1,130,410 | |||||||||
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Cumulative
earnings
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18,639 | 257,818 | 231,098 | |||||||||
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Reserve
for repurchase of shares
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3,169 | 43,837 | 43,837 | |||||||||
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Majority
shareholders' equity
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103,532 | 1,432,065 | 1,405,345 | |||||||||
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Minority
interest
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52 | 725 | 680 | |||||||||
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Total
shareholders' equity
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103,584 | 1,432,790 | 1,406,025 | |||||||||
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Total
liabilities and shareholders' equity
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126,057 | 1,743,638 | 1,700,445 | |||||||||
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(1)
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Amounts for
the fourth quarter 2007 are expressed in Mexican pesos with purchasing
power as of December 31, 2007.
As a result of
a change in MFRS for periods beginning in 2008, we have not prepared 2008
amounts using inflation accounting or re-expressed 2007 amounts as of
December 31, 2008.
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(2)
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Peso amounts
have been translated into U.S. dollars, solely for the convenience of the
reader, at the rate of Ps. 13.832 per U.S. dollar, the noon buying rate
for Mexican pesos on December 31, 2008 as
published by
Federal Reserve Bank of New
York.
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5
Grupo
Radio Centro, S.A.B. de C.V.
Fourth
Quarter 2008 and Year-end Results
|
GRUPO RADIO CENTRO, S.A.B. DE
C.V.
CONSOLIDATED AUDITED STATEMENTS
OF INCOME
for
the three-month and twelve-month periods ended December 31, 2008 and 2007
(1)
(figures
in thousands of Mexican pesos ("Ps.") and U.S. dollars ("U.S. $")(2),
except per Share and per ADS
amounts)
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4th
Quarter
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Accumulated
12 months
|
|||||||||||||||||||||||
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2008
|
2007
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2008
|
2007
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|||||||||||||||||||||
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U.S.
$ (2)
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Ps.
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Ps.
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U.S.
$ (1)
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Ps.
|
Ps.
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|||||||||||||||||||
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Broadcasting
revenue (3)
|
16,725 | 231,342 | 201,177 | 53,145 | 735,105 | 654,760 | ||||||||||||||||||
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Broadcasting
expenses, excluding depreciation, amortization and corporate, general and
administrative expenses
|
9,026 | 124,842 | 105,869 | 32,703 | 452,350 | 421,970 | ||||||||||||||||||
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Broadcasting
income
|
7,699 | 106,500 | 95,308 | 20,442 | 282,755 | 232,790 | ||||||||||||||||||
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Depreciation
and amortization
|
574 | 7,944 | 7,720 | 2,293 | 31,720 | 33,687 | ||||||||||||||||||
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Corporate,
general and administrative expenses
|
323 | 4,461 | 4,789 | 1,045 | 14,461 | 14,774 | ||||||||||||||||||
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Operating
income
|
6,802 | 94,095 | 82,799 | 17,104 | 236,574 | 184,329 | ||||||||||||||||||
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Other
expenses, net
|
(1,268 | ) | (17,539 | ) | (13,743 | ) | (4,112 | ) | (56,880 | ) | (45,806 | ) | ||||||||||||
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Comprehensive
financing cost:
|
||||||||||||||||||||||||
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Interest
expense
|
(165 | ) | (2,276 | ) | (755 | ) | (606 | ) | (8,376 | ) | (2,767 | ) | ||||||||||||
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Interest
income (3)
|
(2 | ) | (34 | ) | (85 | ) | 16 | 228 | 399 | |||||||||||||||
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(Loss)
Gain on foreign currency exchange, net
|
35 | 485 | (12 | ) | 34 | 470 | (5 | ) | ||||||||||||||||
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(Loss)
Gain on net monetary position (4)
|
0 | 0 | 173 | 0 | 0 | (3,477 | ) | |||||||||||||||||
| (132 | ) | (1,825 | ) | (679 | ) | (556 | ) | (7,678 | ) | (5,850 | ) | |||||||||||||
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Income
before income taxes
|
5,402 | 74,731 | 68,377 | 12,436 | 172,016 | 132,673 | ||||||||||||||||||
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Income
taxes
|
1,232 | 17,038 | 22,923 | 3,271 | 45,251 | 41,554 | ||||||||||||||||||
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Net
income
|
4,170 | 57,693 | 45,454 | 9,165 | 126,765 | 91,119 | ||||||||||||||||||
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Net
income applicable to:
|
||||||||||||||||||||||||
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Majority
interest
|
4,169 | 57,673 | 45,443 | 9,162 | 126,720 | 91,098 | ||||||||||||||||||
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Minority
interest
|
1 | 20 | 11 | 3 | 45 | 21 | ||||||||||||||||||
| 4,170 | 57,693 | 45,454 | 9,165 | 126,765 | 91,119 | |||||||||||||||||||
|
Net
income per Series A Share (5)
|
0.0563 | 0.7790 | 0.5598 | |||||||||||||||||||||
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Net
income per ADS (5)
|
0.5067 | 7.0110 | 5.0382 | |||||||||||||||||||||
|
Weighted
average common shares outstanding (000's) (5)
|
162,725 | 162,725 | ||||||||||||||||||||||
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(1)
|
Amounts for the
fourth quarter 2007 are expressed in Mexican pesos with purchasing power
as of December 31, 2007.
As a result of
a change in MFRS for periods beginning in 2008, we have not prepared 2008
amounts using inflation accounting or re-expressed 2007 amounts as of
December 31, 2008.
|
|
(2)
|
Peso amounts
have been translated into U.S. dollars, solely for the convenience of the
reader, at the rate of Ps. 13.832 per U.S. dollar, the noon buying rate
for Mexican pesos on December 31, 2008, as published by
Federal Reserve Bank of New
York.
|
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(3)
|
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 fourth quarter of 2008 and
2007 was Ps. 2,130,000 and Ps. 1,848,000, respectively. Interest earned
and treated as broadcasting revenue for the twelve months ended December
31, 2008 and 2007 was Ps. 6,510,000 and Ps. 3,333,000,
respectively.
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(4)
|
As a result of
a change in MFRS for periods beginning in 2008, we will no longer use
inflation accounting unless the economic enviroment is "inflationary", as
defined by MFRS. Since the economic enviroment was not inflationary in the
fourth quarter 2008, we have not reported gain (loss) on net monetary
position for this period.
|
|
(5)
|
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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6
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:
February 23, 2009
|
By:
|
/s/ Pedro Beltrán Nasr
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Name:
|
Pedro
Beltrán Nasr
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|||
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Title:
|
Chief
Financial Officer
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