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 July, 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) 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 |
 |
July
21, 2009
Grupo
Radio Centro Reports Second Quarter and First Half 2009 Results
Mexico
City, July 21, 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 second quarter and
first half ended June 30, 2009. All figures were prepared in accordance with the
Financial Reporting Standards issued by the Mexican Board for Research and
Development of Financial Information Standards.
Second
Quarter Results
Broadcasting
revenue for the second quarter of 2009 was Ps. 177,990,000, a 2.52%
increase compared to the Ps. 173,613,000 reported for the second quarter of
2008. This increase was mainly attributable to slightly higher advertising
expenditures by the Company’s clients in Mexico during the second quarter of
2009 compared to the same period of 2008, and to the incorporation of the
Company’s operation of Los Angeles radio station, KXOS-FM, pursuant to a Local
Marketing Agreement (the “LMA”) with Emmis Communications Corporation during its
first months of operations.
The
Company’s broadcasting expenses (excluding depreciation, amortization and
corporate, general and administrative expenses) for the second quarter of 2009
were Ps. 131,700,000, a 20.99% increase compared to the
Ps. 108,856,000 reported for the second quarter of 2008. This increase was
primarily due to (i) broadcasting expenses incurred in connection with the Los
Angeles radio station KXOS-FM, to which the Company began providing programming
in April 2009 pursuant to the LMA and (ii) an increase in the peso cost of U.S.
dollar-denominated rental payments under the Company’s agreement to operate
Mexican station XHFO-FM, given the lower value of the Mexican peso in the second
quarter of 2009 compared to the second quarter of 2008.
For the
second quarter of 2009, the Company recorded broadcasting income (i.e.,
broadcasting revenue minus broadcasting expenses, excluding depreciation,
amortization and corporate, general and administrative expenses) of
Ps. 46,290,000, a 28.52% decrease compared to the Ps. 64,757,000
reported for the second quarter of 2008. This decrease was mainly attributable
to the aforementioned increase in broadcasting expenses.
Depreciation and amortization expenses
for the second quarter of 2009 were Ps. 6,614,000, a 17.85% decrease
compared to the Ps. 8,051,000 reported for the second quarter of 2008,
due to a reduction in the amount of depreciable assets.
The
Company’s corporate, general and administrative expenses were Ps. 3,779,000
in the second quarter of 2009, a slight decline compared to the
Ps. 3,805,000 reported for the second quarter of 2008.
The
Company recorded operating income of Ps. 35,897,000 in the second quarter
of 2009, a 32.14% decrease compared to the Ps. 52,901,000 in operating
income reported for the second quarter of 2008. This decline was due to
increased broadcasting expenses during the second quarter of 2009 compared to
the second quarter of 2008, as described above.
Grupo
Radio Centro, S.A.B. de C.V.
Second
Quarter 2009 Results
During
the second quarter of 2009, other expenses, net, were Ps. 34,859,000, a
176.18% increase compared to the Ps. 12,622,000 reported for the second
quarter of 2008. This increase was mainly attributable to legal expenses incurred during the
second quarter of 2009 in connection with the Company’s entry into the
LMA.
The
Company’s comprehensive financing cost for the second quarter of 2009 was
Ps. 24,710,000, compared to Ps. 4,370,000 in the second quarter of
2008. This unfavorable change was primarily due to (i) a Ps. 16,030,000 loss on
net foreign currency exchange attributable to a decline in the peso value of a
U.S. denominated loan from the Company to a U.S. subsidiary, and (ii) a 130.05%
increase in interest expense associated with the Company’s loan from Banco
Inbursa, S.A. to fund amounts payable under the LMA.
For the
second quarter of 2009, the Company recorded a loss before taxes of
Ps. 23,672,000, representing a decline from income before taxes of
Ps. 35,909,000 reported for the second quarter of 2008, which was primarily
attributable to the increases in broadcasting expenses, other expenses and in
the Company’s comprehensive financing cost during the second quarter of 2009, as
described above.
The
Company recorded income taxes of Ps. 4,615,000 in the second quarter of
2009, a 55.92% decrease compared to the Ps. 10,469,000 recorded in the
second quarter of 2008. This decline was due to lower taxable income in the
second quarter of 2009 than in the second quarter of 2008.
As a
result of the foregoing, the Company had a net loss for the second quarter of
2009 of Ps. 28,287,000, compared to net income of Ps. 25,440,000 in
the second quarter of 2008.
First
Half Results
For the
six months ended June 30, 2009, broadcasting revenue was Ps. 333,781,000, a
10.57% increase compared to the Ps. 301,871,000 reported for the same
period of 2008. The increase was mainly attributable to an increase in
advertising expenditures by the Company’s clients, who purchased more airtime
during the first half of 2009 than the comparable period of 2008 and to a lesser
extent to the incorporation of the Company’s operation of Los Angeles radio
station, KXOS-FM, during its first months of operations.
The
Company’s broadcasting expenses (excluding depreciation, amortization and
corporate, general and administrative expenses) for the first six months of 2009
were Ps. 243,850,000, a 14.57% increase compared to the Ps.
212,837,000 reported for the same period of 2008. This increase was primarily
due to (i) broadcasting expenses incurred in connection with the provision of
programming to KXOS-FM, beginning in April 2009, (ii) higher sales commissions
due to the increase in broadcasting revenue, and (iii) the increase in the peso
cost of U.S. dollar-denominated rental payments under the Company’s agreement to
operate XHFO-FM, given the lower value of the Mexican peso in the first six
months of 2009 compared to the first six months of 2008.
Grupo
Radio Centro, S.A.B. de C.V.
Second
Quarter 2009 Results
Broadcasting
income (i.e., broadcasting revenue minus broadcasting expenses, excluding
depreciation, amortization and corporate, general and administrative expenses)
for the first six months of 2009 was Ps. 89,931,000, a 1.01% increase
compared to the Ps. 89,034,000 reported for the same period of
2008.
Depreciation
and amortization expenses for the first six months of 2009 were
Ps. 13,154,000, a 16.39% decrease compared to the Ps. 15,732,000
reported for the same period of 2008. This decrease was due to a reduction in
the amount of depreciable assets.
The
Company’s corporate, general and administrative expenses for the first six
months of 2009 were Ps. 7,557,000, a slight increase compared to the
Ps. 7,300,000 reported for the same period of 2008.
As a
result of the foregoing, the Company recorded operating income of
Ps. 69,220,000 for the first six months of 2009, a 4.88% increase compared
to the Ps. 66,002,000 reported for the same period of 2008.
Other
expenses, net, for the first six months of 2009 were Ps. 46,744,000, a
91.22% increase compared to the Ps. 24,445,000 reported for the same period
of 2008. This increase was mainly attributable to legal expenses incurred during the
second quarter of 2009 in connection with the Company’s entry into the
LMA.
The
Company’s comprehensive cost of financing for the first six months of 2009 was
Ps. 25,782,000, compared to Ps. 4,507,000 in the same period of 2008. This
unfavorable change was primarily due to (i) a Ps. 15,241,000 loss on net foreign
currency exchange attributable to a decline in the peso value of a U.S.
denominated loan from the Company to a U.S. subsidiary and (ii) a 127.55%
increase in interest expense associated with the Company’s loan from Banco
Inbursa, S.A. to fund amounts payable under the LMA.
For the
first six months of 2009, the Company recorded a loss before taxes of
Ps. 3,306,000 compared to income before taxes of Ps. 37,050,000 in the
same period of 2008, mainly due to the aforementioned increases in other
expenses and in the Company’s comprehensive cost of financing.
The
Company recorded income taxes of Ps. 10,318,000 for the first six months of
2009, a slight decline compared to the Ps. 10,800,000 recorded in the same
period of 2008.
As a
result of the foregoing, the Company recorded a net loss of Ps. 13,624,000
in the first six months of 2009, compared to net income of Ps. 26,250,000
in the first six months of 2008.
Grupo
Radio Centro, S.A.B. de C.V.
Second
Quarter 2009 Results
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 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.
|
|
IR
Contacts
|
|
|
In
México:
|
In
NY:
|
|
Pedro
Beltrán / Alfredo Azpeitia
|
Maria
Barona / Peter Majeski
|
|
Grupo
Radio Centro, S.A.B. de C.V.
|
i-advize
Corporate Communications, Inc.
|
|
Tel:
(5255) 5728-4800 Ext. 7018
|
Tel:
(212) 406-3690
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|
aazpeitia@grc.com.mx
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grc@i-advize.com.mx
|
Grupo
Radio Centro, S.A.B. de C.V.
Second
Quarter 2009 Results
|
GRUPO
RADIO CENTRO, S.A.B. DE C.V.
CONSOLIDATED
UNAUDITED BALANCE SHEETS
as
of June 30, 2009 and 2008
(figures
in thousands of Mexican pesos ("Ps.") and U.S. dollars ("U.S. $") (1)
|
|
June
30,
|
||||||||||||
|
2009
|
2008
|
|||||||||||
|
U.S.
$(1)
|
Ps.
|
Ps.
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||||||||||
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ASSETS
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||||||||||||
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Current
assets:
|
||||||||||||
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Cash
and temporary investments
|
3,809 | 50,286 | 104,366 | |||||||||
|
Accounts
receivable:
|
||||||||||||
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Broadcasting,
net
|
16,553 | 218,540 | 161,774 | |||||||||
|
Other
|
1,444 | 19,060 | 5,658 | |||||||||
| 17,997 | 237,600 | 167,432 | ||||||||||
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Prepaid
expenses
|
8,947 | 118,126 | 26,206 | |||||||||
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Total
current assets
|
30,753 | 406,012 | 298,004 | |||||||||
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Property
and equipment, net
|
36,622 | 483,493 | 467,669 | |||||||||
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Prepaid
expenses
|
5,542 | 73,167 | 0 | |||||||||
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Deferred
charges, net
|
309 | 4,073 | 5,216 | |||||||||
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Excess
of cost over book value of net assets of subsidiaries, net
|
62,780 | 828,863 | 828,863 | |||||||||
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Other
assets
|
253 | 3,340 | 3,325 | |||||||||
|
Total
assets
|
136,259 | 1,798,948 | 1,603,077 | |||||||||
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LIABILITIES
|
||||||||||||
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Current:
|
||||||||||||
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Notes
payable
|
2,436 | 32,167 | 0 | |||||||||
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Advances
from customers
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8,142 | 107,492 | 111,219 | |||||||||
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Suppliers
and other accounts payable
|
6,382 | 84,262 | 72,030 | |||||||||
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Taxes
payable
|
2,165 | 28,588 | 24,299 | |||||||||
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Total
current liabilities
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19,125 | 252,509 | 207,548 | |||||||||
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Long-Term:
|
||||||||||||
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Notes
payable
|
12,119 | 160,000 | 0 | |||||||||
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Reserve
for labor liabilities
|
4,772 | 62,997 | 60,116 | |||||||||
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Deferred
taxes
|
298 | 3,940 | 2,233 | |||||||||
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Total
liabilities
|
36,314 | 479,446 | 269,897 | |||||||||
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SHAREHOLDERS'
EQUITY
|
||||||||||||
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Capital
stock
|
85,622 | 1,130,410 | 1,130,409 | |||||||||
|
Cumulative
earnings
|
10,922 | 144,194 | 158,240 | |||||||||
|
Reserve
for repurchase of shares
|
3,321 | 43,837 | 43,839 | |||||||||
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Minority
interest
|
80 | 1,061 | 692 | |||||||||
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Total
shareholders' equity
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99,945 | 1,319,502 | 1,333,180 | |||||||||
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Total
liabilities and Shareholders' equity
|
136,259 | 1,798,948 | 1,603,077 | |||||||||
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(1)
|
Peso
amounts have been translated in to U.S. dollars, solely for the con
venience of the reader, at the rate of Ps. 13.2023 per U.S. dollar, the
rate on June 30, 2009
|
Grupo
Radio Centro, S.A.B. de C.V.
Second
Quarter 2009 Results
|
GRUPO
RADIO CENTRO, S.A.B. DE C.V.
CONSOLIDATED
UNAUDITED STATEMENTS OF INCOME
for
the three-month and six-month periods ended June 30, 2009 and
2008
(figures
in thousands of Mexican pesos ("Ps.") and U.S. dollars ("U.S. $")(1)
, except per Share and per ADS
amounts)
|
|
2nd
Quarter
|
Accumulated
6 months
|
|||||||||||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||||||||||
| U.S.$(1) |
Ps.
|
Ps.
|
U.S.$(1)
|
Ps.
|
Ps.
|
|||||||||||||||||||
|
Broadcasting revenue (2)
|
13,482 | 177,990 | 173,613 | 25,282 | 333,781 | 301,871 | ||||||||||||||||||
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Broadcasting
expenses, excluding depreciation,
|
||||||||||||||||||||||||
|
amortization
and corporate, general and administrative
|
||||||||||||||||||||||||
|
expenses
|
9,976 | 131,700 | 108,856 | 18,470 | 243,850 | 212,837 | ||||||||||||||||||
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Broadcasting
income
|
3,506 | 46,290 | 64,757 | 6,812 | 89,931 | 89,034 | ||||||||||||||||||
|
Depreciation
and amortization
|
501 | 6,614 | 8,051 | 996 | 13,154 | 15,732 | ||||||||||||||||||
|
Corporate,
general and administrative expenses
|
286 | 3,779 | 3,805 | 572 | 7,557 | 7,300 | ||||||||||||||||||
|
Operating
income
|
2,719 | 35,897 | 52,901 | 5,244 | 69,220 | 66,002 | ||||||||||||||||||
|
Other
expenses, net
|
(2,640 | ) | (34,859 | ) | (12,622 | ) | (3,541 | ) | (46,744 | ) | (24,445 | ) | ||||||||||||
|
Comprehensive
financing cost:
|
||||||||||||||||||||||||
|
Interest
expense
|
(670 | ) | (8,843 | ) | (3,844 | ) | (813 | ) | (10,736 | ) | (4,718 | ) | ||||||||||||
|
Interest income (2)
|
12 | 163 | (452 | ) | 15 | 195 | 315 | |||||||||||||||||
|
(Loss)
on foreign currency exchange, net
|
(1,214 | ) | (16,030 | ) | (74 | ) | (1,154 | ) | (15,241 | ) | (104 | ) | ||||||||||||
| (1,872 | ) | (24,710 | ) | (4,370 | ) | (1,952 | ) | (25,782 | ) | (4,507 | ) | |||||||||||||
|
(Loss)
Income before income taxes
|
(1,793 | ) | (23,672 | ) | 35,909 | (249 | ) | (3,306 | ) | 37,050 | ||||||||||||||
|
Income
taxes
|
350 | 4,615 | 10,469 | 782 | 10,318 | 10,800 | ||||||||||||||||||
|
Net
(loss) income
|
(2,143 | ) | (28,287 | ) | 25,440 | (1,031 | ) | (13,624 | ) | 26,250 | ||||||||||||||
|
Net
(loss) income applicable to:
|
||||||||||||||||||||||||
|
Majority
interest
|
(681 | ) | (8,981 | ) | 25,434 | 430 | 5,658 | 26,235 | ||||||||||||||||
|
Minority
interest
|
(1,462 | ) | (19,306 | ) | 6 | (1,461 | ) | (19,282 | ) | 15 | ||||||||||||||
| (2,143 | ) | (28,287 | ) | 25,440 | (1,031 | ) | (13,624 | ) | 26,250 | |||||||||||||||
|
Net income per Series A Share (3)
|
0.049 | 0.6523 | 0.6403 | |||||||||||||||||||||
|
Net income per ADS (3)
|
0.441 | 5.8707 | 5.7627 | |||||||||||||||||||||
|
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. 13.2023 per U.S. dollar, the rate on
June 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
second quarter of 2009 and 2008 was Ps. 1,221,000 and Ps.
1,562,000, respectively. Interest earned and treated as broadcasting
revenue for the six months ended June 30, 2009 and 2008 was Ps.
2,569,000 and Ps. 2,211,000, 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.
|
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:
July 23, 2009
|
By: |
/s/ Pedro Beltrán Nasr
|
|
|
Name: Pedro
Beltrán Nasr
|
|||
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Title: Chief
Financial Officer
|
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