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, 2004 Commission File Number 1-12090
GRUPO RADIO CENTRO, S.A. de C.V.
(Translation of Registrant's name into English)
Constituyentes 1154, Piso 7
Col. Lomas Altas, Mexico 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-_____ .)
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. de C.V.
(Registrant)
Date: July 20, 2004 By: /s/ Pedro Beltran Nasr
Name: Pedro Beltran Nasr
Title: Chief Financial Officer
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GRUPO
RADIO
CENTRO
Earnings
Release
IR Contacts:
In Mexico
Pedro Beltran / Alfredo Azpeitia.
Grupo Radio Centro. S.A. de C.V.
Tel. (5255) 5728-4800 Ext. 7018
In New York:
Maria Barona
Melanie Carpenter
i-advize Corporate
Communications, Inc.
Tel: (212) 406-3690
Email: grc@i-advize.com
RC
Listed
NYSE
THE NEW YORK STOCK EXCHANGE
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For Immediate Release
July 19, 2004
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Grupo Radio Centro Reports Second Quarter
and First Half 2004 Results
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Mexico City, July 19, 2004 - Grupo Radio Centro, S.A. de C.V. (NYSE: RC, BMV:
RCENTRO-A) (the "Company"), Mexico's leading radio broadcasting company,
announced today its results of operations for the second quarter and first half
ended June 30, 2004. All figures were prepared in accordance with generally
accepted accounting principles in Mexico and have been restated in constant
pesos as of June 30, 2004.
For the second quarter of 2004, broadcasting revenue was Ps. 116,660,000,
representing a decrease of 56.2% compared to Ps. 266,292,000 reported for the
same period of 2003. This decrease was mainly attributable to higher advertising
expenditures from political parties during 2003, in connection with the
congressional elections that were held in July 2003, as well as lower
broadcasting revenue due to the fact that the Company no longer received news
services from Infored during the second quarter of 2004.
The Company's broadcasting expenses (excluding depreciation, amortization and
corporate, general and administrative expenses) during the second quarter of
2004 were Ps. 88,547,000, representing a decrease of 35.1% compared to Ps.
136,411,000 reported for the same period of 2003. This decrease was mainly
attributable to lower costs from the production of the news program by Infored,
which was produced for the Company until the end of the first quarter of 2004.
For the second quarter ended June 30, 2004, the Company reported broadcasting
income (i.e., broadcasting revenue minus broadcasting expenses, excluding
depreciation, amortization and corporate, general and administrative expenses)
of Ps. 28,113,000, representing a decrease of 78.4% compared to a broadcasting
income of Ps. 129,881,000 reported for the same period in 2003. This decline was
mainly attributable to the decrease in broadcasting revenue.
Grupo Radio Centro, S.A. de C.V.
Second Quarter and First Half 2004 Results
Depreciation and amortization for the second quarter 2004 amounted to Ps.
23,233,000, an 18.0% decrease compared to Ps. 28,324,000 reported for the same
period of 2003. This reduction was mainly due to the goodwill write-off in
connection with a Company subsidiary during the second quarter 2003.
For the second quarter of 2004, the Company's corporate, general and
administrative expenses were Ps. 4,703,000, compared to Ps. 17,914,000 reported
for the same period of 2003. This 73.7% decrease was due to lower fees, since
there were no payments made to Infored related to the production of news
programming during the second quarter of 2004.
Primarily as a result of the decrease in broadcasting income, the Company
reported operating income of Ps. 177,000 for the second quarter of 2004 compared
to operating income of Ps. 83,643,000 reported for the same period of 2003.
The Company's comprehensive financing cost was Ps. 14,538,000, an increase of
100.2% compared to a comprehensive financing cost of Ps. 7,263,000 reported for
the same period of 2003. This unfavorable change was primarily attributable to
an increase in foreign exchange loss, net, from Ps. 219,000 in the second
quarter 2003 to Ps. 7,062,000 for the same period of 2004 related to the
contingent liability in connection with the arbitration proceeding decision,
which was announced in March 2004.
During the period ended June 30, 2004, other expenses, net, were Ps. 11,382,000,
compared to Ps. 17,972,000 reported for the same period in 2003. This 36.7%
decrease was mainly attributed to lower legal expenses in 2004 compared to the
same period of 2003.
The Company reported a loss before provisions for income tax and employee profit
sharing of Ps. 25,743,000, compared to a gain before provisions for income tax
and employee profit sharing of Ps. 58,408,000 reported for the second quarter
2003.
The Company recorded a reduction in provisions for income tax and employee
profit sharing for the second quarter of 2004 of Ps. 2,738,000 compared to a
provision of Ps. 2,138,000 for the same period of 2003.
As a result of the foregoing, the Company's net loss for the second quarter 2004
was Ps. 23,005,000, compared to net income of Ps. 56,270,000 reported for same
period of 2003.
First Half Results
For the six months ended June 30, 2004, broadcasting revenue was Ps.
233,300,000, a 49.6% decrease compared to Ps. 462,490,000 reported for the same
period of 2003. This decrease was mainly attributable to higher advertising
expenditures from political parties during 2003, in connection with the
congressional elections held in July 2003, as well as lower broadcasting revenue
due to the fact that the Company no longer received news services from Infored
since the end of the first quarter of 2004.
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Grupo Radio Centro, S.A. de C.V.
Second Quarter and First Half 2004 Results
The Company's broadcasting expenses (excluding depreciation, amortization and
corporate, general and administrative expenses) were Ps. 201,119,000, a 20.3%
decrease compared to Ps. 252,261,000 reported for the first half of 2003. This
decrease in broadcasting expenses was primarily attributable to lower costs from
the production of news programming, which Infored produced for the Company until
the end of the first quarter of 2004.
Broadcasting income (i.e., broadcasting revenue minus broadcasting expenses,
excluding depreciation, amortization and corporate, general and administrative
expenses) was Ps. 32,181,000, representing a decrease of 84.7% compared to Ps.
210,229,000 reported for the first half of 2003. This decrease was mainly
attributable to the decrease in broadcasting revenue mainly from political
advertising for the first half of 2004 compared to the same period of 2003.
Depreciation and amortization was Ps. 46,602,000, a decrease of 19.4% compared
to Ps. 57,797,000 reported for the first half of 2003. This decrease was mainly
due to the goodwill write-off in connection with a Company subsidiary during the
first half of 2003.
The Company's corporate, general and administrative expenses during the first
half of 2004 were Ps. 12,031,000, a decrease of 59.4% compared to Ps. 29,636,000
reported for the same period of 2003. This decrease was mainly due to lower fees
paid to Infored, which ceased production of news services for the Company at the
end of the first quarter of 2004.
As a result of the decrease in broadcasting income, the Company reported an
operating loss of Ps. 26,452,000 for the first half of 2004, compared to
operating income of Ps. 122,796,000 reported for the same period of 2003.
The Company's comprehensive financing cost was Ps. 17,960,000; a reduction of
11.7% compared to a comprehensive financing cost of Ps. 20,337,000 for the first
half of 2003. This favorable change is mainly attributable to a reduction in the
foreign exchange loss, net, to Ps. 5,401,000 from Ps. 7,413,000 for the first
half of 2003.
Other expenses, net, for the first half of 2004 were Ps. 21,629,000, a 39.7%
decrease compared to Ps. 35,843,000 reported for the same period of 2003. This
decrease is attributable to severance payments made during the first quarter of
2003 in connection with personnel reductions, as well as lower legal expenses in
2004, compared to the same period of 2003.
For the first half of 2004, the Company reported a loss before provisions for
income tax and employee profit sharing of Ps. 66,041,000, compared to income
before provisions for income tax and employee profit sharing of Ps. 66,616,000
reported for the same period in 2003. During the first half of 2004, the Company
recorded a reduction in provisions for income tax and employee profit sharing of
Ps. 2,738,000 compared to a provision for income tax and employee profit sharing
of Ps. 2,138,000 for the same period in 2003.
As a result of the foregoing, the Company had a net loss of Ps. 63,303,000 for
the first half of 2004 compared to net income of Ps. 64,478,000 for the first
half of 2003.
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Grupo Radio Centro, S.A. de C.V.
Second Quarter and First Half 2004 Results
Other Matters:
From June 30, 2003 to June 30, 2004, the Company decreased its total bank debt
by approximately Ps. 61.0 million, from Ps. 259.1 million to Ps. 198.1 million.
While the Company has the right to use the Monitor brand, and while it intends
to reduce its use, the Company changed the names of the news programs on its
radio stations XHRED-FM (Radio Red FM) and XERED-AM (Radio Red AM), as it
believes that this decision is in the Company's best interests.
Company Description:
Grupo Radio Centro owns and/or operates 14 radio stations, 11 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 Grupo RED radio stations and
Organizacion Impulsora de Radio (OIR), a radio network which acts as the
national sales representative for, and provides programming to Grupo Radio
Centro-affiliated radio stations.
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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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Grupo Radio Centro, S.A. de C.V.
Second Quarter and First Half 2004 Results
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GRUPO RADIO CENTRO, S.A. DE C.V.
CONSOLIDATED UNAUDITED BALANCE SHEETS
as of June 30, 2004 and 2003
in Mexican Pesos ("Ps.") with purchasing power as of June 30, 2004
(figures in thousands of Ps. and U.S. dollars ("U.S. $")(1),
except per Share and per ADS amounts)
--------------------------------------------------------------------------------
June 30
--------------------------------------
2004 2003
U.S.$(1) Ps. Ps.
---------- ---------- ----------
ASSETS
Current assets:
Cash and temporary investments 2,263 25,811 136,452
---------- ---------- ----------
Accounts receivable:
Broadcasting, net 12,592 143,698 243,376
Other 745 8,498 9,754
Income tax recoverable 1,093 12,476 0
---------- ---------- ----------
14,430 164,672 253,130
Guarantee deposit 353 4,034 7,210
Prepaid expenses 774 8,827 18,271
---------- ---------- ----------
Total current assets 17,820 203,344 415,063
Prepaid expenses 0 0 104,288
Property and equipment 41,358 471,958 488,814
Deferred charges 1,268 14,467 17,748
Guarantee deposit 0 0 4,206
Excess of cost over book value of subsidiaries 65,113 743,045 815,349
Other assets 277 3,161 3,274
---------- ---------- ----------
Total assets 125,836 1,435,975 1,848,742
========== ========== ==========
LIABILITIES
Current:
Notes payable 4,961 56,618 134,936
Advances from customers 3,544 40,438 105,319
Other accounts payable and accrued expenses 3,764 42,959 62,490
Taxes payable 1,189 13,567 60,534
Contingent Liability 21,016 239,824 0
---------- ---------- ----------
Total current liabilities 34,474 393,406 363,279
Long-Term:
Deferred income tax 1,675 19,109 48,028
Notes payable 12,404 141,546 124,188
Reserve for labor obligations 2,542 29,005 28,873
---------- ---------- ----------
Total liabilities 51,095 583,066 564,368
---------- ---------- ----------
STOCKHOLDERS' EQUITY
Capital stock 95,392 1,088,575 1,089,477
Retained earnings (16,384) (186,968) 243,410
Provision for repurchase of shares 3,370 38,457 38,636
Accumulated effect of deferred income tax (8,067) (92,063) (92,063)
Surplus on restatement of capital 386 4,402 4,402
Minority interest 44 506 512
---------- ---------- ----------
Total stockholders' equity 74,741 852,909 1,284,374
---------- ---------- ----------
Total liabilities and stockholders' equity 125,836 1,435,975 1,848,742
========== ========== ==========
(1) Peso amounts have been translated into U.S. dollars, solely for the
convenience of the reader, at the rate of Ps. 11.4116 per U.S. dollar, the
noon buying rate for Mexican pesos on June 30, 2004.
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Grupo Radio Centro, S.A. de C.V.
Second Quarter and First Half 2004 Results
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GRUPO RADIO CENTRO, S.A. DE C.V.
CONSOLIDATED UNAUDITED STATEMENTS OF INCOME
for the three-month and six-month periods ended
June 30, 2004 and 2003 expressed
in Mexican Pesos ("Ps.") with purchasing power as of June 30, 2004
(figures in thousands of Ps. and U.S. dollars ("U.S. $")(1),
except per Share and per ADS amounts)
--------------------------------------------------------------------------------
------------------------------------------------------------------
2nd Quarter First Half
------------------------------------------------------------------
2004 2003 2004 2003
U.S.$ (1) Ps. Ps. U.S.$ (1) Ps. Ps.
--------------------- ---------- ---------------------- ----------
Broadcasting revenue (2) 10,224 116,660 266,292 20,444 233,300 462,490
Broadcasting expenses, excluding depreciation,
amortization and corporate expenses 7,759 88,547 136,411 17,624 201,119 252,261
---------- ---------- ---------- ---------------------- ----------
Broadcasting income 2,465 28,113 129,881 2,820 32,181 210,229
.......... .......... .......... ...................... ..........
Depreciation and amortization 2,036 23,233 28,324 4,084 46,602 57,797
Corporate general and administrative expenses 412 4,703 17,914 1,054 12,031 29,636
---------- ---------- ---------- ---------------------- ----------
Operating income (loss) 17 177 83,643 (2,318) (26,452) 122,796
.......... .......... .......... ...................... ..........
Comprehensive financing cost:
Interest expense (689) (7,861) (6,858) (1,245) (14,226) (15,014)
Interest income (2) 8 95 198 23 267 678
Foreign exchange (loss) income, net (618) (7,062) (219) (473) (5,401) (7,413)
Gain (loss) on monetary position 25 290 (384) 123 1,400 1,412
---------- ---------- ---------- ---------------------- ----------
(1,274) (14,538) (7,263) (1,572) (17,960) (20,337)
Other expenses, net (997) (11,382) (17,972) (1,895) (21,629) (35,843)
---------- ---------- ---------- ---------------------- ----------
(Loss) income before the following provisions (2,254) (25,743) 58,408 (5,785) (66,041) 66,616
Provisions for income tax & employee profit
sharing (240) (2,738) 2,138 (240) (2,738) 2,138
---------- ---------- ---------- ---------------------- ----------
Net (loss) income (2,014) (23,005) 56,270 (5,545) (63,303) 64,478
Net (loss) income applicable to:
Majority interest (2,014) (23,006) 56,271 (5,544) (63,292) 64,477
Minority interest 0 1 (1) (1) (11) 1
---------- ---------- ---------- ---------------------- ----------
(2,014) (23,005) 56,270 (5,545) (63,303) 64,478
========== ========== ========== ====================== ==========
Net income for the LTM per Series A Share (3) ($0.204) (2.323) 0.980
Net income for the LTM per ADS (3) ($1.832) (20.903) 8.816
Weighted average common shares outstanding
for the LTM (000's) (3) 162,625 163,763
.....................................................................................................................
(1) Peso amounts have been translated into U.S. dollars, solely for the
convenience of the reader, at the rate of Ps. 11.4116 per U.S. dollar, the
noon buying rate for Mexican pesos on June 30, 2004.
(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 2004 and 2003 was Ps. 774,000 and Ps. 149,000, respectively. Interest
earned and treated as broadcasting revenue for the six months ended June
30, 2004 and 2003 was Ps. 1,324,000 and Ps. 258,000, 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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