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 October, 2010
|
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 ¨
(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-
.)
For
Immediate Release
October
22, 2010
Grupo Radio Centro Reports Results for Third Quarter and First Nine Months of 2010
Mexico
City, October 22, 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 third quarter and
nine months ended September 30, 2010. All figures were prepared in accordance
with the Financial Reporting Standards issued by the Mexican Board for Research
and Development of Financial Information Standards.
Third
Quarter Results
Broadcasting
revenue in the third quarter 2010 was Ps. 226,147,000, an 18.3% increase
compared to the Ps. 191,215,000 reported in the third quarter 2009. This
increase was mainly attributable to higher advertising expenditures by the
Company’s clients in Mexico during the third quarter 2010 compared to the same
period 2009, as well as broadcasting revenue from Los Angeles radio station
KXOS-FM.
The
Company’s broadcasting expenses (excluding depreciation, amortization and
corporate, general and administrative expenses) in the third quarter 2010 were
Ps. 172,511,000, an 8.6% increase compared to the Ps. 158,817,000
reported in the third quarter 2009. This increase was primarily due to higher
commissions paid to the Company’s sales force due to higher broadcasting revenue
in the third quarter 2010 compared to the same period in 2009. This increase was
partially offset by a decrease in broadcasting expenses from Los Angeles radio
station KXOS-FM.
For the
third quarter 2010, the Company recorded broadcasting income (i.e., broadcasting
revenue minus broadcasting expenses, excluding depreciation, amortization and
corporate, general and administrative expenses) of Ps. 53,636,000, a 65.6%
increase compared to the Ps. 32,398,000 reported in the third quarter 2009.
This increase was mainly attributable to the increase in broadcasting revenue
described above.
Depreciation and amortization expenses
in the third quarter 2010 were Ps. 5,828,000, a slight decrease compared to
the Ps. 6,404,000 reported in the third quarter 2009, as a result of
a reduction in the amount of depreciable assets.
The
Company’s corporate, general and administrative expenses were Ps. 2,808,000
in both the third quarter of 2009 and 2010.
The Company recorded operating income
of Ps. 45,000,000 in the third quarter 2010, a 94.1% increase compared to
the Ps. 23,186,000 in operating income reported in the third quarter 2009.
This increase was due to increased broadcasting revenue during the third quarter
2010 compared to the third quarter 2009 as described above.
Grupo
Radio Centro, S.A.B. de C.V.
Third
Quarter 2010 Results
During the third quarter 2010, other
expenses, net, were Ps. 9,925,000, a 46.4% decrease compared to the
Ps. 18,517,000 reported in the third quarter 2009. This decrease was mainly
attributable to tax credits recorded by the Company’s subsidiaries during
the third quarter 2010.
The
Company’s comprehensive financing cost in the third quarter 2010 was
Ps. 5,261,000, compared to Ps. 861,000 in the third quarter 2009. This
change was primarily due to a Ps. 5,193,000 gain on net foreign currency
exchange in the third quarter 2009, which was attributable to an appreciation in
the peso value of a U.S. denominated loan from the Company to a U.S. subsidiary
compared to a Ps. 10,000 gain in the third quarter 2010.
During
the third quarter 2010, the Company recorded income before taxes of
Ps. 29,814,000, compared to income before taxes of Ps. 3,808,000
reported in the third quarter 2009, which was primarily attributable to an
increase in operating income, as well as a decrease in other expenses, net,
during the third quarter 2010.
The
Company recorded income taxes of Ps. 17,827,000 in the third quarter 2010,
an increase of 61.7% compared to the Ps. 11,027,000 recorded in the third
quarter 2009. This increase was due to higher taxable income in the third
quarter 2010 than the third quarter 2009.
As a
result of the foregoing, the Company recorded net income in the third quarter
2010 of Ps. 11,987,000, compared to a net loss of Ps. 7,219,000 in the
third quarter 2009.
Nine-Month
Results
For the
nine months ended September 30, 2010, broadcasting revenue was
Ps. 601,017,000, a 14.5% increase compared to the Ps. 524,996,000
reported in the same period 2009. The increase was mainly attributable to an
increase in advertising expenditures by the Company’s clients, who purchased
more airtime in the first nine months 2010 than the comparable period in 2009,
as well as the incorporation of the Company’s Los Angeles radio station
KXOS-FM.
The
Company’s broadcasting expenses (excluding depreciation, amortization and
corporate, general and administrative expenses) in the first nine months 2010
were Ps. 500,539,000, an 18.6% increase compared to the
Ps. 422,128,000 reported in the same period 2009. This increase was
primarily due to (i) broadcasting expenses incurred in connection with the Los
Angeles radio station KXOS-FM beginning in April 2009, resulting in a comparison
between nine months for the 2010 period and five and a half months for the 2009
period, (ii) higher sales commissions due to the increase in broadcasting
revenue, and (iii) expenses related to the Company’s mass media advertising
campaigns.
Broadcasting
income (i.e., broadcasting revenue minus broadcasting expenses, excluding
depreciation, amortization and corporate, general and administrative expenses)
in the first nine months 2010 was Ps. 100,478,000, a 2.3% decrease compared
to the Ps. 102,868,000 reported in the same period 2009.
Depreciation
and amortization expenses in the first nine months 2010 were
Ps. 18,117,000, a 7.4% decrease compared to the Ps. 19,558,000
reported in the same period 2009. This decrease was due to a reduction in the
amount of depreciable assets.
The
Company’s corporate, general and administrative expenses in the first nine
months 2010 were Ps. 10,365,000, the same amount reported in 2009.
2
Grupo
Radio Centro, S.A.B. de C.V.
Third
Quarter 2010 Results
As a
result of the foregoing, the Company recorded operating income of
Ps. 71,996,000 in the first nine months 2010, a 1.3% decrease compared to
the Ps. 72,945,000 reported in the same period 2009.
Other
expenses, net, in the first nine months 2010 were Ps. 36,390,000, a 20.5%
decrease compared to the Ps. 45,800,000 reported in the same period 2009.
This decrease was mainly attributable to legal expenses incurred in 2009 related
to agreements for the Los Angeles radio station, as well as revenue from
tax credits during the third quarter 2010.
The
Company’s comprehensive cost of financing in the first nine months 2010 was
Ps. 18,101,000, compared to Ps. 26,643,000 in the same period 2009. This
change was primarily due to a lower loss on net foreign currency exchange from
Ps. 10,048,000 in the first nine months 2009 to a Ps. 164,000 loss on net
foreign currency exchange in the first nine months 2010.
For the
first nine months 2010, the Company recorded income before taxes of
Ps. 17,505,000 compared to income before taxes of Ps. 502,000 in the
same period 2009, mainly due to the aforementioned decrease in the Company`s
other expenses, net, and comprehensive cost of financing.
The
Company recorded income taxes of Ps. 29,994,000 in the first nine months
2010, compared to Ps. 21,345,000 recorded in the same period
2009.
As a
result of the foregoing, the Company recorded a net loss of Ps. 12,489,000
in the first nine months 2010, compared to a net loss of Ps. 20,843,000 in
the first nine months 2009.
3
Grupo
Radio Centro, S.A.B. de C.V.
Third
Quarter 2010 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.
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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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RI
Contacts
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|
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In
México:
|
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.
|
i-advize
Corporate Communications, Inc.
|
|
Tel:
(5255) 5728-4800 Ext. 4910
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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.
Third
Quarter 2010 Results
GRUPO
RADIO CENTRO, S.A.B. DE C.V.
CONSOLIDATED
UNAUDITED BALANCE SHEETS
as
of September 30, 2010 and 2009
(figures in thousands of Mexican pesos
("Ps.") and U.S. dollars ("U.S. $") (1)
|
September 30,
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||||||||||||
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2010
|
2009
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|||||||||||
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U.S. $(1)
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Ps.
|
Ps.
|
||||||||||
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ASSETS
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||||||||||||
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Current
assets:
|
||||||||||||
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Cash
and temporary investments
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3,092 | 38,656 | 70,988 | |||||||||
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Accounts
receivable:
|
||||||||||||
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Broadcasting,
net
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18,837 | 235,483 | 222,642 | |||||||||
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Other
|
856 | 10,695 | 32,119 | |||||||||
| 19,693 | 246,178 | 254,761 | ||||||||||
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Prepaid
expenses
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5,227 | 65,337 | 113,688 | |||||||||
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Total
current assets
|
28,012 | 350,171 | 439,509 | |||||||||
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Property
and equipment, net
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35,402 | 442,565 | 466,107 | |||||||||
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Prepaid
expenses
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0 | 0 | 51,208 | |||||||||
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Deferred
charges, net
|
442 | 5,526 | 3,717 | |||||||||
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Excess
of cost over book value of net assets of subsidiaries, net
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66,303 | 828,863 | 828,863 | |||||||||
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Other
assets
|
268 | 3,338 | 3,340 | |||||||||
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Total
assets
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130,427 | 1,630,463 | 1,792,744 | |||||||||
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LIABILITIES
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||||||||||||
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Current:
|
||||||||||||
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Notes
payable
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5,704 | 71,305 | 31,950 | |||||||||
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Advances
from customers
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4,593 | 57,413 | 82,567 | |||||||||
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Suppliers
and other accounts payable
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5,238 | 65,478 | 72,725 | |||||||||
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Taxes
payable
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2,360 | 29,501 | 31,242 | |||||||||
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Total
current liabilities
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17,895 | 223,697 | 218,484 | |||||||||
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Long-Term:
|
||||||||||||
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Notes
payable
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7,999 | 100,000 | 150,000 | |||||||||
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Reserve
for labor liabilities
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5,427 | 67,841 | 64,614 | |||||||||
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Deferred
taxes
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1,563 | 19,545 | 0 | |||||||||
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Total
liabilities
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32,884 | 411,083 | 433,098 | |||||||||
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SHAREHOLDERS' EQUITY
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||||||||||||
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Capital
stock
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90,425 | 1,130,410 | 1,130,410 | |||||||||
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Cumulative
earnings
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5,011 | 62,644 | 173,095 | |||||||||
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Reserve
for repurchase of shares
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3,507 | 43,837 | 43,837 | |||||||||
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Accumulated
effect by conversion
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(1,425 | ) | (17,820 | ) | (1,393 | ) | ||||||
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Minority
interest
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25 | 309 | 13,697 | |||||||||
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Total
shareholders' equity
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97,543 | 1,219,380 | 1,359,646 | |||||||||
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Total
liabilities and Shareholders' equity
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130,427 | 1,630,463 | 1,792,744 | |||||||||
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(1)
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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. 12.5011 per U.S. dollar,
the rate on September 30,
2010.
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5
Grupo
Radio Centro, S.A.B. de C.V.
Third
Quarter 2010 Results
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, 2010 and
2009
(figures
in thousands of Mexican pesos ("Ps.") and U.S. dollars ("U.S. $")(1),
except per Share and per ADS amounts)
|
3rd Quarter
|
Accumulated 9 months
|
|||||||||||||||||||||||
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2010
|
2009
|
2010
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2009
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|||||||||||||||||||||
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U.S.$ (1)
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Ps.
|
Ps.
|
U.S.$ (1)
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Ps.
|
Ps.
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|||||||||||||||||||
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Broadcasting revenue (2)
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18,090 | 226,147 | 191,215 | 48,077 | 601,017 | 524,996 | ||||||||||||||||||
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Broadcasting
expenses, excluding depreciation, amortization and corporate,
general and administrative expenses
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13,800 | 172,511 | 158,817 | 40,040 | 500,539 | 422,128 | ||||||||||||||||||
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Broadcasting
income
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4,290 | 53,636 | 32,398 | 8,037 | 100,478 | 102,868 | ||||||||||||||||||
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Depreciation
and amortization
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466 | 5,828 | 6,404 | 1,449 | 18,117 | 19,558 | ||||||||||||||||||
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Corporate,
general and administrative expenses
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225 | 2,808 | 2,808 | 829 | 10,365 | 10,365 | ||||||||||||||||||
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Operating
income
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3,599 | 45,000 | 23,186 | 5,759 | 71,996 | 72,945 | ||||||||||||||||||
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Other
expenses, net
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(794 | ) | (9,925 | ) | (18,517 | ) | (2,911 | ) | (36,390 | ) | (45,800 | ) | ||||||||||||
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Comprehensive
financing cost:
|
||||||||||||||||||||||||
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Interest
expense
|
(418 | ) | (5,227 | ) | (6,054 | ) | (1,475 | ) | (18,439 | ) | (16,790 | ) | ||||||||||||
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Interest income (2)
|
(4 | ) | (44 | ) | 0 | 40 | 502 | 195 | ||||||||||||||||
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(Loss)
on foreign currency exchange, net
|
1 | 10 | 5,193 | (13 | ) | (164 | ) | (10,048 | ) | |||||||||||||||
| (421 | ) | (5,261 | ) | (861 | ) | (1,448 | ) | (18,101 | ) | (26,643 | ) | |||||||||||||
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Income
(loss) before income taxes
|
2,384 | 29,814 | 3,808 | 1,400 | 17,505 | 502 | ||||||||||||||||||
|
Income
taxes
|
1,426 | 17,827 | 11,027 | 2,399 | 29,994 | 21,345 | ||||||||||||||||||
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Net
income (loss)
|
958 | 11,987 | (7,219 | ) | (999 | ) | (12,489 | ) | (20,843 | ) | ||||||||||||||
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Net
income (loss) applicable to:
|
||||||||||||||||||||||||
|
Majority
interest
|
958 | 11,987 | 9,619 | (999 | ) | (12,494 | ) | 15,277 | ||||||||||||||||
|
Minority
interest
|
0 | 0 | (16,838 | ) | 0 | 5 | (36,120 | ) | ||||||||||||||||
| 958 | 11,987 | (7,219 | ) | (999 | ) | (12,489 | ) | (20,843 | ) | |||||||||||||||
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Net income per Series A Share (3)
|
0.015 | 0.1881 | 0.4483 | |||||||||||||||||||||
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Net income per ADS (3)
|
0.135 | 1.6929 | 4.0347 | |||||||||||||||||||||
|
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. 12.5011 per U.S. dollar, the
rate on September 30, 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 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 2010 and 2009 was Ps. 1,126,000 and
Ps. 1,051,000, respectively. Interest earned and treated as broadcasting
revenue for the nine months ended September 30, 2010 and 2009 was
Ps. 3,468,000 and Ps. 3,620,000,
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.
|
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.
|
Grupo
Radio Centro, S.A.B. de C.V.
(Registrant)
|
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Date: October
22, 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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