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 | 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
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
| · | 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%. |
| · | 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.
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 |
| aazpeitia@grc.com.mx | grc@i-advize.com.mx |
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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) ) |
| March 31 | ||||||||||||
| 2010 | 2009 | |||||||||||
U.S. $(1) | Ps. | Ps. | ||||||||||
| ASSETS | ||||||||||||
| Current assets: | ||||||||||||
| Cash and temporary investments | 2,814 | 35,071 | 347,183 | |||||||||
| Accounts receivable: | ||||||||||||
| Broadcasting, net | 16,157 | 201,376 | 194,848 | |||||||||
| Other | 678 | 8,446 | 8,008 | |||||||||
| Prepaid taxes | 0 | 0 | 2,672 | |||||||||
| 16,835 | 209,822 | 205,528 | ||||||||||
| Prepaid expenses | 8,886 | 110,754 | 34,391 | |||||||||
| Total current assets | 28,535 | 355,647 | 587,102 | |||||||||
| Property and equipment, net | 36,361 | 453,203 | 470,810 | |||||||||
| Prepaid expenses | 292 | 3,636 | 0 | |||||||||
| Deferred charges, net | 217 | 2,704 | 4,478 | |||||||||
| Excess of cost over book value of net assets of subsidiaries, net | 66,501 | 828,863 | 828,863 | |||||||||
| Other assets | 269 | 3,353 | 3,325 | |||||||||
| Total assets | 132,175 | 1,647,406 | 1,894,578 | |||||||||
| LIABILITIES | ||||||||||||
| Current: | ||||||||||||
| Short-term debt | 3,257 | 40,591 | 30,433 | |||||||||
| Advances from customers | 7,688 | 95,820 | 99,652 | |||||||||
| Suppliers and other accounts payable | 6,577 | 81,976 | 72,850 | |||||||||
| Taxes payable | 2,799 | 34,891 | 6,022 | |||||||||
| Total current liabilities | 20,321 | 253,278 | 208,957 | |||||||||
| Long-Term: | ||||||||||||
| Long-term debt | 9,628 | 120,000 | 170,000 | |||||||||
| Reserve for labor liabilities | 5,401 | 67,312 | 61,862 | |||||||||
| Deferred taxes | 174 | 2,166 | 6,309 | |||||||||
| Total liabilities | 35,524 | 442,756 | 447,128 | |||||||||
| SHAREHOLDERS' EQUITY | ||||||||||||
| Capital stock | 90,694 | 1,130,410 | 1,130,410 | |||||||||
| Cumulative earnings | 3,899 | 48,595 | 272,457 | |||||||||
| Reserve for repurchase of shares | 3,517 | 43,837 | 43,837 | |||||||||
| Accumulated Effect by Conversion | (1,484 | ) | (18,498 | ) | - | |||||||
| Majority shareholders' equity | 96,626 | 1,204,344 | 1,446,704 | |||||||||
| Minority interest | 25 | 306 | 746 | |||||||||
| Total shareholders' equity | 96,651 | 1,204,650 | 1,447,450 | |||||||||
| Total liabilities and shareholders' equity | 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.
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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. $")(1), except per Share and per ADS amounts) |
| March 31 | ||||||||||||
| 2010 | 2009 | |||||||||||
U.S.$ (1) | Ps. | Ps. | ||||||||||
Broadcasting revenue (2) | 13,341 | 166,281 | 155,791 | |||||||||
| Broadcasting expenses, excluding depreciation, | ||||||||||||
| amortization and corporate, general and administrative expenses | 12,900 | 160,783 | 112,150 | |||||||||
| Broadcasting income | 441 | 5,498 | 43,641 | |||||||||
| Depreciation and amortization | 493 | 6,144 | 6,540 | |||||||||
| Corporate, general and administrative expenses | 303 | 3,778 | 3,778 | |||||||||
| Operating (loss) income | (355 | ) | (4,424 | ) | 33,323 | |||||||
| Other expenses, net | (1,080 | ) | (13,455 | ) | (11,885 | ) | ||||||
| Comprehensive financing income (cost): | ||||||||||||
| Interest expense | (611 | ) | (7,620 | ) | (1,893 | ) | ||||||
Interest income (2) | 1 | 9 | 32 | |||||||||
| Gain (loss) on foreign currency exchange, net | 20 | 251 | 789 | |||||||||
| (590 | ) | (7,360 | ) | (1,072 | ) | |||||||
| (Loss) income before income taxes | (2,025 | ) | (25,239 | ) | 20,366 | |||||||
| Income taxes | 189 | 2,358 | 5,703 | |||||||||
| Net (loss) income | (2,214 | ) | (27,597 | ) | 14,663 | |||||||
| Net (loss) income applicable to: | ||||||||||||
| Majority interest | (2,214 | ) | (27,600 | ) | 14,639 | |||||||
| Minority interest | 0 | 3 | 24 | |||||||||
| (2,214 | ) | (27,597 | ) | 14,663 | ||||||||
Net income (loss) per Series A Share (3) | 0.008 | 0.0992 | 0.8637 | |||||||||
Net income (loss) per ADS (3) | 0.072 | 0.8928 | 7.7733 | |||||||||
Weighted average common shares outstanding (000's) (3) | 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.
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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: April 26, 2010 | By: | /s/ Pedro Beltrán Nasr | |
| Name: Pedro Beltrán Nasr | |||
| Title: Chief Financial Officer | |||