Exhibit 99.1
[LOGO] GRUPO
RADIO
CENTRO
Earnings
Release
IR Contacts:
In Mexico:
Pedro Beltran / Alfredo Azpeitia
Grupo Radio Centro, S.A. de C.V.
Tel: 5255-57-28-48 81 or
5255-57-28-48
In New York:
Maria Barona
Blanca Hirani
i-advize Corporate
Communications, Inc.
Tel: (212) 406-3690
Email: grc@i-advize.com
For Immediate Release
February 27, 2003
--------------------------------------
GRUPO RADIO CENTRO REPORTS
FOURTH QUARTER AND YEAR-END RESULTS
FOR THE PERIOD ENDED DECEMBER 31, 2002
--------------------------------------
Mexico City, February 27, 2003 - Grupo Radio Centro, S.A. de C.V. (NYSE: RC,
BMV: RCENTRO-CPO), one of Mexico's leading radio broadcasting companies, today
announced its consolidated results for the fourth quarter and year ended
December 31, 2002. All figures were prepared in accordance with generally
accepted accounting principles in Mexico and have been restated in constant
pesos as of December 31, 2002.
Fourth Quarter Results
For the three months ended December 31, 2002, broadcasting revenue was Ps.
267,909,000, an increase of 11.3% compared with Ps. 240,672,000 reported for the
same period of 2001. This increase in broadcasting revenue was attributable to
higher advertising expenditures by political parties.
Broadcasting expenses (excluding depreciation, amortization and corporate,
general and administrative expenses) for the three months ended December 31,
2002 were Ps. 92,962,000, a 30.5% decrease as compared with Ps. 133,714,000
reported for the same period of 2001. This decrease was primarily attributable
to the cancellation of non-productive programming and better control of
operating and advertising expenses of the Company.
Broadcasting income (broadcasting revenue minus broadcasting expenses, excluding
depreciation, amortization and corporate, general and administrative expenses)
for the quarter ended December 31, 2002 was Ps. 174,947,000, a 63.6% increase
compared with Ps. 106,958,000 reported for the same period of 2001. This
increase was attributable to the combination of higher broadcasting revenues and
a decrease in broadcasting expenses.
Depreciation and amortization decreased 18.0% from Ps. 45,767,000 during the
fourth quarter of 2001 to Ps. 37,516,000 for the same period of 2002. This
decrease was due to a goodwill write-off during the 2001 period in connection
with some of the Company's subsidiaries.
The Company's corporate, general and administrative expenses for the quarter
ended December 31, 2002 were Ps. 11,121,000 a decrease of 34.2% compared with
Ps. 16,895,000 reported for the same period of 2001. This decrease was mainly
due to lower provisions for executive compensation during the fourth quarter of
2002.
Grupo Radio Centro, S.A. de C.V.
February 27, 2002
Page 2 of 3
Operating income for the three months ended December 31, 2002 was Ps.
126,310,000, a 185.1% increase compared with Ps. 44,296,000 reported for the
same period of 2001. This increase was attributable to the increase in
broadcasting income during the fourth quarter of 2002, compared with the fourth
quarter of 2001.
For the fourth quarter of 2002, the Company reported EBITDA (operating income
before deducting depreciation and amortization) of Ps. 163,826,000, representing
an increase of 81.9% compared with Ps. 90,063,000 reported for the same period
of 2001. This increase was attributable to the increase in operating income
during the fourth quarter of 2002 compared with the fourth quarter of 2001.
In the fourth quarter of 2002, the Company's comprehensive financing cost was
Ps. 11,486,000, compared with comprehensive financing income of Ps. 5,488,000
reported for the same period of 2001. This unfavorable change resulted primarily
from a foreign exchange loss of Ps. 3,070,000 during the 2002 period, due to the
weakening of the peso against the U.S. dollar during the fourth quarter of 2002,
compared with a foreign exchange gain of Ps. 15,500,000 for the 2001 period.
This unfavorable change was partially offset by an interest expense decrease
from Ps. 6,880,000 in 2001 to Ps. 5,616,000 in 2002, resulting from a decrease
in the Company's bank debt during 2002.
Other expenses, net, for the quarter ended December 31, 2002 was Ps. 1,767,000,
compared with other expenses, net of Ps. 27,032,000 reported for the same period
of 2001. This favorable change was primarily attributable to the sale of certain
non-broadcasting assets and to a reduction in expenses from operations of one of
the Company's subsidiaries not-engaged in broadcasting activities.
Income before provisions for income tax and employee profit sharing for the
three months ended December 31, 2002 increased almost five-fold to Ps.
113,057,000 from Ps. 22,752,000 reported for the same period of 2001. The
provision for income tax and employee profit sharing was reduced by Ps.
8,131,000 in the fourth quarter of 2002, compared to a reduction in provisions
for income tax and employee profit sharing of Ps. 6,086,000 for the same period
of 2001.
As a result of the foregoing, net income for the fourth quarter of 2002 was Ps.
121,188,000, a more than four-fold increase compared with Ps. 28,838,000
reported for the fourth quarter of 2001.
Twelve-Month Results
For the year ended December 31, 2002, broadcasting revenue was Ps. 710,135,000,
a 5.3% decrease compared with Ps. 750,103,000 reported for 2001. This decrease
was mainly due to the slowdown of the Mexican economy during 2002 compared with
2001, which was partially offset by advertising revenues generated from
political parties during the fourth quarter of 2002.
The Company's broadcasting expenses (excluding depreciation and amortization and
corporate, general and administrative expenses) for the year ended December 31,
2002 were Ps 461,286,000, a 4.9% decrease as compared with Ps. 485,001,000
reported for 2001. This decrease mainly resulted from the factors mentioned
above in connection with the fourth quarter of 2002.
Broadcasting income for the year ended December 31, 2002 was Ps. 248,849,000, a
6.1% decrease compared with Ps. 265,102,000 reported for 2001. This decrease was
primarily due to the decrease in broadcasting revenue, which was partially
offset by the reduction in broadcasting expenses during 2002.
Depreciation and amortization for the year ended December 31, 2002 decreased
8.0% to Ps. 108,030,000, from Ps. 117,519,000 reported for 2001. This decrease
was primarily attributable to the factors mentioned for the fourth quarter of
2002.
Grupo Radio Centro, S.A. de C.V.
February 27, 2002
Page 3 of 3
Corporate, general and administrative expenses for the year ended December 31,
2002 were Ps. 45,117,000, a decrease of 10.5% compared with Ps. 50,393,000
reported for 2001. This decrease was mainly due to lower executive
compensations.
As a result of the foregoing factors, operating income for 2002 was Ps.
95,702,000, representing a decrease of 1.5% compared with Ps. 97,190,000
reported for 2001.
EBITDA (operating income before deducting depreciation and amortization) for the
twelve months ended December 31, 2002 was Ps. 203,732,000, representing a
decrease of 5.1% compared with EBITDA of Ps. 214,709,000 reported for the same
period of 2001. This reduction reflects the decrease in broadcasting income for
2002 compared with 2001.
Comprehensive financing cost increased from Ps. 12,115,000 during 2001 to Ps.
51,176,000 reported for 2002. This increase was primarily attributable to a
foreign exchange loss of Ps. 42,061,000 for 2002, compared with a foreign
exchange gain of Ps. 17,190,000 for 2001, as a result of the weakening of the
peso against the U.S. dollar in the fourth quarter of 2002. This unfavorable
change was partially offset by a decline in interest expense from Ps. 35,354,000
in 2001 to Ps. 20,032,000 in 2002, primarily resulting from a decrease in bank
debt during 2002.
Other expenses, net were Ps. 50,479,000 in 2002, compared with Ps. 73,084,000
reported for 2001. This favorable change was attributable to the factors
mentioned above for the fourth quarter of 2002.
As a result, loss before provisions for income tax and employee profit sharing
for the year ended December 31, 2002 was Ps. 5,953,000 compared with an income
before provisions for income tax and employee profit sharing of Ps. 11,991,000
for 2001. Provisions for income tax and employee profit sharing were reduced by
Ps. 8,131,000 for 2002, compared to a reduction of Ps. 5,772,000 for 2001 that
resulted from the use of tax loss carryforwards in 2001.
As a result of the foregoing factors, net income for 2002 decreased 87.7% to Ps.
2,178,000, compared with Ps. 17,763,000 reported for 2001.
Other Matters:
During 2002, the Company's total bank debt decreased approximately US $8.5
million, from US $41.2 million in 2001 to US $32.7 million in 2002 (of which
70.0% is in local currency) and thus the financial risk of the Company was
significantly reduced. Therefore, ratio of Bank Loans to EBITDA for the year
ended December 31, 2002 was equivalent to 1.67 times EBITDA, which the Company
notes is lower than other public Mexican media companies.
Company Description:
Grupo Radio Centro owns and/or operates 14 radio stations, 12 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 a radio network, Organizacion
Impulsora de Radio, which acts as the national sales representative for, and
provides programming to, Grupo Radio Centro-affiliated radio stations.
================================================================================
GRUPO RADIO CENTRO, S.A. DE C.V.
CONSOLIDATED UNAUDITED STATEMENTS OF INCOME
for the three and twelve month periods ended December 31, 2002 and 2001
expressed in Mexican Pesos ("Ps.") with purchasing power as of December 31, 2002
(figures in thousands of Ps. and U.S. dollars ("U.S. $")(1),
except per Share and per ADS amounts)
================================================================================
4th Quarter Accumulated 12 months
----------------------------------- -----------------------------------
2002 2001 2002 2001
---------------------- --------- --------------------- ---------
U.S.$(1) Ps. Ps. U.S.$(1) Ps. Ps.
--------- --------- --------- --------- -------- ---------
Broadcasting revenue(2) 25,699 267,909 240,672 68,118 710,135 750,103
Broadcasting expenses, excluding depreciation,
amortization and corporate expenses 8,917 92,962 133,714 44,248 461,286 485,001
------ ------- ------- ------ ------- -------
Broadcasting income 16,782 174,947 106,958 23,870 248,849 265,102
------ ------- ------- ------ ------- -------
Depreciation and amortization 3,599 37,516 45,767 10,363 108,030 117,519
Corporate, general and administrative expenses 1,067 11,121 16,895 4,328 45,117 50,393
------ ------- ------- ------ ------- -------
Operating income 12,116 126,310 44,296 9,179 95,702 97,190
------ ------- ------- ------ ------- -------
EBITDA 15,715 163,826 90,063 19,543 203,732 214,709
Comprehensive financing cost:
Interest expense (539) (5,616) (6,880) (1,920) (20,032) (35,354)
Interest income(2) 47 491 202 214 2,229 2,831
Foreign exchange gain (loss), net (294) (3,070) 15,500 (4,035) (42,061) 17,190
Gain (loss) on monetary position (316) (3,291) (3,334) 833 8,688 3,218
------ ------- ------- ------ ------- -------
(1,102) (11,486) 5,488 (4,908) (51,176) (12,115)
Other expense, net (169) (1,767) (27,032) (4,842) (50,479) (73,084)
------ ------- ------- ------ ------- -------
Income (loss) before the following provisions 10,845 113,057 22,752 (571) (5,953) 11,991
Provisions for income tax and employee profit
sharing (780) (8,131) (6,086) (780) (8,131) (5,772)
------ ------- ------- ------ ------- -------
Net income 11,625 121,188 28,838 209 2,178 17,763
====== ======= ======= ====== ======= =======
Net income applicable to:
Majority interest 11,625 121,189 28,831 208 2,164 17,748
Minority interest 0 (1) 7 1 14 15
------ ------- ------- ------ ------- -------
11,625 121,188 28,838 209 2,178 17,763
====== ======= ======= ====== ======= =======
Net income for the LTM per Series A Share(3) 0.001 0.013 0.108
Net income for the LTM per ADS(3) 0.009 0.117 0.972
Weighted average common shares outstanding
for the LTM (000's)(3) 163,235 163,917
- --------------------------------------------------------------------------------
(1) Peso amounts have been translated into U.S. dollars, solely for the
convenience of the reader, at the rate of Ps. 10.425 per U.S. dollar, the
noon buying rate for Pesos on December 31, 2002, as published by the
Federal Reserve Bank of New York.
(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 fourth quarter
of 2002 and 2001 was Ps. 309,000 and Ps. 603,000, respectively. Interest
earned and treated as broadcasting revenue for the twelve months ended
December 31, 2002 and 2001 was Ps. 745,000 and Ps. 3,467,000,
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.
================================================================================
GRUPO RADIO CENTRO, S.A. DE C.V.
CONSOLIDATED UNAUDITED BALANCE SHEETS
as of December 31, 2002 and 2001
in Mexican Pesos ("Ps.") with purchasing power as of December 31, 2002
(figures in thousands of Ps. and U.S. dollars ("U.S. $")(1))
================================================================================
December 31
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2002 2001
------------------------ ----------
U.S. $(1) Ps. Ps.
---------- ---------- ----------
ASSETS
Current assets:
Cash and temporary investments 3,771 39,315 70,436
---------- ---------- ----------
Accounts receivable:
Broadcasting, net 18,246 190,215 126,926
Others 571 5,947 5,787
Income tax recoverable 1,672 17,427 47,305
Value added tax recoverable 0 0 10,761
---------- ---------- ----------
20,489 213,589 190,779
Guarantee deposit 663 6,915 7,258
Prepaid expenses 1,554 16,197 14,100
---------- ---------- ----------
Total current assets 26,477 276,016 282,573
Prepaid expenses 10,031 104,571 120,142
Excess cost over book value,
net of subsidiaries 77,642 809,417 882,413
Property and equipment, net 45,753 476,973 507,007
Deferred charges, net 1,700 17,719 15,930
Guarantee deposit 719 7,491 14,517
Other assets 301 3,141 4,334
---------- ---------- ----------
Total assets 162,623 1,695,328 1,826,916
========== ========== ==========
LIABILITIES
Short-Term:
Bank loans 17,543 182,882 172,949
Advances from customers 1,517 15,818 56,814
Other accounts payable and
accrued expenses 6,168 64,299 94,069
Taxes payable 1,278 13,319 6,729
---------- ---------- ----------
Total short-term liabilities 26,506 276,318 330,561
Long-Term:
Bank loans 15,203 158,487 225,496
Reserve for seniority premiums 2,414 25,167 19,732
Deferred taxes 7,749 80,781 93,135
---------- ---------- ----------
Total liabilities 51,872 540,753 668,924
STOCKHOLDERS' EQUITY:
Capital stock 98,910 1,031,139 1,037,698
Retained earnings 16,245 169,353 167,272
Reserve for repurchase of shares 3,508 36,567 34,733
Surplus on restatement of capital 400 4,166 4,005
Minority interest 46 482 524
Accumulated effect of deferred
income tax (8,358) (87,132) (86,240)
---------- ---------- ----------
Total stockholders' equity 110,751 1,154,575 1,157,992
---------- ---------- ----------
Total liabilities and
stockholders' equity 162,623 1,695,328 1,826,916
========== ========== ==========
(1) Peso amounts have been translated into U.S. dollars, solely for the
convenience of the reader, at the rate of Ps. 10.425 per U.S. dollar, the
noon buying rate for pesos on December 31, 2002, as published by the
Federal Reserve Bank of New York.