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, 2012            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

 

July 17, 2012

 

Grupo Radio Centro Reports Second Quarter and First Half 2012 Results

 

Mexico City, July 17, 2012 - 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, 2012. All figures were prepared in accordance with International Financial Reporting Standards (IFRS).

 

Second Quarter Results

 

The Company’s broadcasting revenue for the second quarter of 2012 totaled Ps. 235,834,000, a 2.3% increase compared to the Ps. 230,431,000 reported for the second quarter of 2011. This slight increase was mainly attributable to higher advertising expenditures by the Company’s clients in Mexico, who purchased more airtime during the second quarter of 2012 compared to the same period of 2011.

 

The Company’s broadcasting expenses (excluding depreciation, amortization and corporate expenses) for the second quarter of 2012 totaled Ps. 177,973,000, a 6.2% increase compared to the Ps. 167,542,000 reported for the second quarter of 2011. This increase was mainly due to (i) higher commissions paid to the Company’s sales force and to advertising agencies due to the increase in broadcasting revenue and (ii) higher expenses related to the radio station in Los Angeles, KXOS-FM.

 

The Company’s depreciation and amortization expenses for the second quarter of 2012 totaled Ps. 5,183,000, a 7.1% decrease compared to the Ps. 5,577,000 reported for the second quarter of 2011. This decrease was attributable to a reduction in the amount of depreciable assets.

 

The Company’s corporate expenses for the second quarter of 2012 totaled Ps. 3,779,000, the same amount reported for the second quarter of 2011.

 

The Company’s operating income for the second quarter of 2012 totaled Ps. 48,899,000, an 8.7% decrease compared to the Ps. 53,533,000 reported for the second quarter of 2011. This decrease was mainly due to the increase in broadcasting expenses described above.

 

The Company’s other expenses, net for the second quarter of 2012 totaled Ps. 29,336,000, an 81.3% increase compared to the Ps. 16,183,000 reported for the second quarter of 2011. This increase was mainly attributable to legal expenses incurred during the second quarter of 2012.

  

 

 

 
 

Grupo Radio Centro, S.A.B. de C.V.

Second Quarter 2012 Results

 

 

The Company’s finance costs for the second quarter of 2012 totaled Ps. 3,270,000, a 41.9% decrease compared to the Ps. 5,624,000 reported for the second quarter of 2011. This decrease was mainly attributable to a reduction in the interest expense paid under the Company’s loan with Banco Inbursa, S.A. as a result of the payment by the Company of a portion of the principal thereon.

 

The Company’s profit before income taxes for the second quarter of 2012 totaled Ps. 16,293,000, a 48.6% decrease compared to the Ps. 31,726,000 reported for the same period of 2011.

 

The Company’s income tax totaled Ps. 6,768,000 as a negative provision for the second quarter of 2012, a significant decrease compared to the Ps. 15,339,000 recorded in the second quarter of 2011. This decrease was mainly due to certain tax benefits obtained.

 

As a result of the foregoing, the Company’s profit in the second quarter of 2012 totaled Ps. 23,061,000, a 40.7% increase compared to the profit of Ps. 16,387,000 recorded for the second quarter of 2011.

 

First Half Results

 

The Company’s broadcasting revenue for the six months ended June 30, 2012 totaled Ps. 477,546,000, a 13.9% increase compared to the Ps. 419,197,000 reported for the same period of 2011. This increase was mainly attributable to higher advertising expenditures by the Company’s clients in Mexico, who purchased more airtime during the first half of 2012 compared to the same period of 2011.

 

The Company’s broadcasting expenses (excluding depreciation, amortization and corporate expenses) for the first six months of 2012 totaled Ps. 358,818,000, a 6.1% increase compared to the Ps. 338,198,000 reported for the same period of 2011. This increase was primarily due to (i) higher commissions paid to the Company’s sales force and to advertising agencies due to the increase in broadcasting revenue, (ii) higher expenses related to the Los Angeles radio station, KXOS-FM and (iii) an increase in production costs for talk shows programs.

 

The Company’s depreciation and amortization expenses for the first six months of 2012 totaled Ps. 10,451,000, a 6.6% decrease compared to the Ps. 11,188,000 reported for the same period of 2011. This decrease was due to a reduction in the amount of depreciable assets in the first half of 2012 compared to the same period of 2011.

 

The Company’s corporate expenses for the first six months of 2012 totaled Ps. 7,557,000, the same amount reported for the same period of 2011.

 

The Company’s operating income for the first six months of 2012 totaled Ps. 100,720,000, a 61.8% increase compared to the Ps. 62,254,000 reported for the same period of 2011.

 

The Company’s other expenses, net for the first six months of 2012 totaled Ps. 43,705,000, a 40.1% increase compared to the Ps. 31,203,000 reported for the same period of 2011. This increase was mainly attributable to legal expenses in the first half of 2012 compared to the same period of 2011.

 

The Company’s finance costs for the first six months of 2012 totaled Ps. 7,173,000, a decrease of 30.9% compared to the Ps. 10,384,000 reported for the same period of 2011. This decrease was mainly attributable to a reduction in the interest expense paid under the Company’s loan with Banco Inbursa, S.A. as a result of the payment by the Company of a portion of the principal thereon.

 

 

 

 
 

Grupo Radio Centro, S.A.B. de C.V.

Second Quarter 2012 Results

 

 

The Company’s profit before income tax for the first six months of 2012 totaled Ps. 49,842,000, a 141.2% increase compared to the profit before income tax of Ps. 20,667,000 reported for the same period of 2011. This increase was mainly due to the aforementioned increase in broadcasting revenue.

 

For the first six months of 2012, the Company’s income tax totaled Ps. 2,518,000 as a negative provision, a significant decrease compared to the income tax of Ps. 21,576,000 recorded for the same period of 2011. This decrease was mainly the result of certain tax benefits obtained.

 

As a result of the foregoing, the Company’s profit in the first six months of 2012 totaled Ps. 52,360,000, compared to a net loss of Ps. 909,000 for the same period of 2011.

 

 

 

  

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 127 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. de C.V. i-advize Corporate Communications, Inc.
Tel: (5255) 5728-4800 Ext. 4910 Tel: (212) 406-3690
aazpeitia@grc.com.mx grc@i-advize.com.mx

 

 

 

 
 

Grupo Radio Centro, S.A.B. de C.V.

Second Quarter 2012 Results

 

 

GRUPO RADIO CENTRO, S.A.B. DE C.V.
CONSOLIDATED UNAUDITED BALANCE SHEETS
as of June 30, 2012 and 2011
(figures in thousands of Mexican pesos ("Ps.") and U.S. dollars ("U.S. $") (1)
   June 30, 
   2012   2011 
   U.S. $(1)   Ps.   Ps. 
ASSETS            
Current assets:            
Cash and cash equivalents   5,447    74,373    124,397 
                
Accounts receivable:               
Broadcasting receivables - Net   19,975    272,714    302,733 
Other receivables   980    13,382    7,504 
    20,955    286,096    310,237 
                
Prepaid expenses   4,039    55,150    28,209 
Deferred taxes   288    3,934    0 
Total current assets   30,729    419,553    462,843 
                
Property and equipment   35,579    485,761    431,246 
Deferred charges, net   200    2,725    4,330 
Goodwill   60,709    828,863    828,863 
Other assets   268    3,653    3,416 
Total assets   127,485    1,740,555    1,730,698 
                
LIABILITIES               
Current liabilities:               
Current portion of long-term debt   2,970    40,554    40,871 
Deferred revenue   2,106    28,757    122,562 
Accounts payable and accrued expenses   4,753    64,895    68,164 
Taxes payable   2,698    36,838    59,149 
Total current liabilities   12,527    171,044    290,746 
                
Non-current liabilities:               
Long-term debt   2,197    30,000    70,000 
Employee benefits   5,748    78,472    61,136 
Deferred taxes   0    0    20,258 
    Total liabilities   20,472    279,516    442,140 
                
STOCKHOLDERS' EQUITY               
Common stock   77,636    1,059,962    1,059,962 
Retained earnings   26,828    366,285    196,185 
Reserve for repurchase of shares   2,197    29,989    29,989 
Other comprehensive income   336    4,590    2,105 
Equity attributable to owners of the Company   106,997    1,460,826    1,288,241 
Non-controlling Interest   16    213    317 
Total equity   107,013    1,461,039    1,288,558 
    Total liabilities and Stockholders' equity   127,485    1,740,555    1,730,698 

 

(1)Peso amounts have been translated into U.S. dollars, solely for the convenience of the reader, at the rate of Ps. 13.653 per U.S. dollar, the rate on June 30, 2012

 

  

 

 
 

Grupo Radio Centro, S.A.B. de C.V.

Second Quarter 2012 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, 2012 and 2011
(figures in thousands of Mexican pesos ("Ps.") and U.S. dollars ("U.S. $")(1), except per Share and per ADS amounts)
   2nd Quarter   Accumulated 6 months 
   2012   2011   2012   2011 
   U.S.$ (1)   Ps.   Ps.   U.S.$ (1)   Ps.   Ps. 
                         
Broadcasting revenue (2)   17,273    235,834    230,431    34,977    477,546    419,197 
Broadcasting expenses, excluding depreciation, amortization and corporate expenses   13,035    177,973    167,542    26,281    358,818    338,198 
                               
Depreciation and amortization    380    5,183    5,577    765    10,451    11,188 
Corporate expenses   277    3,779    3,779    554    7,557    7,557 
Operating income   3,581    48,899    53,533    7,377    100,720    62,254 
                               
Other expenses, net   (2,149)   (29,336)   (16,183)   (3,201)   (43,705)   (31,203)
                               
Finance costs:                              
Interest expense   (246)   (3,357)   (5,680)   (511)   (6,977)   (10,371)
Interest income (2)   7    92    41    9    125    2 
Income (loss) on foreign currency exchange, net   0    (5)   15    (24)   (321)   (15)
Net finance costs   (239)   (3,270)   (5,624)   (526)   (7,173)   (10,384)
                               
Profit before income taxes   1,193    16,293    31,726    3,650    49,842    20,667 
                               
Income tax expense   (496)   (6,768)   15,339    (184)   (2,518)   21,576 
Profit (loss) for the period   1,689    23,061    16,387    3,834    52,360    (909)
                               
Profite (loss) applicable to:                              
Majority interest   1,689    23,064    16,386    3,834    52,360    (912)
Minority interest   0    (3)   1    0    0    3 
    1,689    23,061    16,387    3,834    52,360    (909)
                               
Net income (loss) per Series A Share (3)                  0.103    1.4058    0.5160 
Net income (loss) per ADS (3)                  0.927    12.6522    4.6440 
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. 13.653 per U.S. dollar, the rate on June 30, 2012

 

(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 2012 and 2011 was Ps. 1,224,000 and Ps. 562,000, respectively. Interest earned and treated as broadcasting revenue for the six months ended June 30, 2012 and 2011 was Ps. 2,338,000 and Ps. 1,023,000, 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 17, 2012 By: /s/ Pedro Beltrán Nasr               
     Name:  Pedro Beltrán Nasr
     Title:   Chief Financial Officer