CONFORMED
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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, 2006 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- ___.)
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GRUPO RADIO CENTRO REPORTS FIRST QUARTER 2006 RESULTS
MEXICO CITY, April 17 /PRNewswire-FirstCall/ -- Grupo Radio Centro, S.A. de
C.V. (NYSE: RC, BMV: RCENTRO-A) (the "Company"), one of Mexico's leading radio
broadcasting companies, announced today its operating results for the three
months ended March 31, 2006. All figures were prepared in accordance with
Financial Information Standards accepted in Mexico and have been restated in
constant pesos as of March 31, 2006.
First Quarter Results
Broadcasting revenue for the first quarter of 2006 was Ps. 176,530,000,
representing a 60.3% increase compared to the Ps. 110,138,000 reported for the
same period of 2005. This increase in broadcasting revenue was mainly
attributable to the increase in advertising expenditures from political parties.
The Company's broadcasting expenses (excluding depreciation, amortization
and corporate, general and administrative expenses) for the first quarter of
2006 were Ps. 96,809,000, representing an 8.3% increase compared to the Ps.
89,404,000 reported for the same period of 2005. This increase was attributable
to an increase in the sales commissions paid during the first quarter of 2006 to
the Company's general sales force, expenses related to additional advertising
and marketing campaigns conducted by the Company during the first quarter of
2006 and an increase in the allowance for doubtful accounts.
For the first quarter of 2006, the Company reported broadcasting income
(i.e., broadcasting revenue minus broadcasting expenses, excluding depreciation,
amortization and corporate, general and administrative expenses) of Ps.
79,721,000, a 284.5% increase compared to broadcasting income of Ps. 20,734,000
reported for the same period of 2005. This significant increase was due
primarily to the increase in broadcasting revenue.
Depreciation and amortization for the first quarter of 2006 amounted to Ps.
10,590,000, a slight increase compared to the Ps. 10,078,000 reported for the
same period of 2005.
For the first quarter of 2006, the Company's corporate, general and
administrative expenses were Ps. 6,534,000, a 47.3% increase compared to the Ps.
4,435,000 reported for the same period of 2005. This increase was due to higher
fees paid for the sale of airtime during the first quarter of 2006.
The Company reported operating income of Ps. 62,597,000 for the first
quarter of 2006 compared to operating income of Ps. 6,221,000 reported for the
same period of 2005. This increase was primarily due to a significant increase
in broadcasting revenue, which resulted from higher advertising expenditures
from political parties in connection with the upcoming elections.
The Company's comprehensive financing cost for the first quarter of 2006
was Ps. 9,630,000, a 51.4% increase compared to a comprehensive financing cost
of Ps. 6,360,000 reported for the same period of 2005. This increase was
primarily due to a loss in foreign currency exchange, net of Ps. 3,602,000 for
the first quarter of 2006 compared to a loss in foreign currency exchange, net
of Ps. 610,000 for the same period of 2005, which resulted from a greater
depreciation of the Peso against the U.S. Dollar during the first quarter of
2006 compared to the same period of 2005.
For the first quarter of 2006, other expenses, net were Ps. 9,012,000,
compared to the Ps. 9,351,000 reported for the same period of 2005.
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For the first quarter of 2006, the Company reported income before
provisions for income tax and employee profit sharing of Ps. 43,955,000 compared
to a loss before provisions for income tax and employee profit sharing of Ps.
9,490,000 reported for the same period of 2005.
The Company recorded provisions for income tax and employee profit sharing
for the first quarter of 2006 of Ps. 10,057,000 compared to provisions for
income tax and employee profit sharing of Ps. 46,000 for the same period of
2005.
As a result of the foregoing, the Company's net income for the first
quarter of 2006 was Ps. 33,898,000, compared to net loss of Ps. 9,536,000
reported for same period of 2005.
Other Matters:
From March 31, 2005 to March 31, 2006, the Company's total bank debt
decreased from Ps. 175.8 million to Ps. 113.2 million as a result of scheduled
payments.
Company Description:
Grupo Radio Centro owns and/or operates 14 radio stations. Of these 14
radio stations, Grupo Radio Centro operates 11 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. In addition to the
Organizacion Radio Centro radio stations, the Company also operates Grupo RED
radio stations and Organizacion Impulsora de Radio (OIR), a radio network that
acts as the national sales representative for, and provides programming to,
Grupo Radio Centro-affiliated radio stations.
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 Mexico:
Pedro Beltran / Alfredo Azpeitia
Grupo Radio Centro, S.A. de C.V.
Tel: (5255) 5728-4800 Ext. 7018
aazpeitia@grc.com.mx
In NY:
Maria Barona / Peter Majeski
i-advize Corporate Communications, Inc.
Tel: (212) 406-3690
grc@i-advize.com.mx
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GRUPO RADIO CENTRO, S.A. DE C.V.
CONSOLIDATED UNAUDITED BALANCE SHEETS
as of March 31, 2006 and 2005
in Mexican Pesos ("Ps.") with purchasing power as of March 31, 2006
(figures in thousands of Ps. and U.S. dollars ("U.S. $")(1))
March 31
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2006 2005
--------------------------- ------------
U.S.$(1) Ps. Ps.
------------ ------------ ------------
ASSETS
Current assets:
Cash and temporary investments 15,980 175,001 42,744
Accounts receivable:
Broadcasting, net 15,939 174,544 148,056
Other 667 7,300 5,275
Income tax recoverable 0 0 21,129
16,606 181,844 174,460
Prepaid expenses 1,539 16,857 13,306
Total current assets 34,125 373,702 230,510
Long-term accounts receivable 0 0 14,775
Property and equipment, net 42,887 469,652 499,953
Deferred charges, net 1,030 11,276 13,763
Excess of cost over book value of
subsidiaries 70,669 773,900 766,103
Other assets 294 3,220 3,333
Total assets 149,005 1,631,750 1,528,437
LIABILITIES
Current:
Notes payable 5,170 56,618 58,611
Advances from customers 6,976 76,398 43,330
Other accounts payable and accrued
expenses 3,456 37,848 33,513
Taxes payable 3,556 38,940 14,199
Contingent Liabilities 23,154 253,562 255,972
Total current liabilities 42,312 463,366 405,625
Long-Term:
Deferred income tax 1,977 21,644 37,742
Notes payable 5,170 56,618 117,224
Reserve for labor obligations 4,216 46,171 34,240
Total liabilities 53,675 587,799 594,831
STOCKHOLDERS' EQUITY
Capital stock 107,287 1,174,895 1,173,977
Retained (deficit) earnings (7,193) (78,770) (187,876)
Provision for repurchase of shares 3,837 42,017 41,487
Accumulated effect of deferred income
tax (9,066) (99,284) (99,284)
Effect from labor obligations (23) (255) 0
Surplus on restatement of capital 433 4,746 4,746
Minority interest 55 602 556
Total stockholders' equity 95,330 1,043,951 933,606
Total liabilities and
stockholders' equity 149,005 1,631,750 1,528,437
(1) Peso amounts have been translated into U.S. dollars, solely for the
convenience of the reader, at the rate of Ps. 10.951 per U.S. dollar, the
rate on March 31, 2006.
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GRUPO RADIO CENTRO, S.A. DE C.V.
CONSOLIDATED UNAUDITED STATEMENTS OF INCOME
for the three-month Period ended March 31, 2006 and 2005 expressed
in Mexican Pesos ("Ps.") with purchasing power as of March 31, 2006
(figures in thousands of Ps. and U.S. dollars ("U.S. $")(1),
except per Share and per ADS amounts)
March 31
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2006 2005
--------------------------- ------------
U.S.$(1) Ps. Ps.
------------ ------------ ------------
Broadcasting revenue (2) 16,121 176,530 110,138
Broadcasting expenses, excluding
depreciation, amortization and
corporate expenses 8,840 96,809 89,404
Broadcasting income 7,281 79,721 20,734
Depreciation and amortization 967 10,590 10,078
Corporate general and
administrative expenses 597 6,534 4,435
Operating income 5,717 62,597 6,221
Comprehensive financing income (cost):
Interest expense (763) (8,355) (8,428)
Interest income (2) 98 1,069 603
Gain (loss) on foreign currency
exchange, net (328) (3,602) (610)
Gain on net monetary position 115 1,258 2,075
(878) (9,630) (6,360)
Other expenses, net (823) (9,012) (9,351)
Income (loss) before provisions 4,016 43,955 (9,490)
Provisions for income tax &
employee profit sharing 918 10,057 46
Net income (loss) 3,098 33,898 (9,536)
Net income (loss) applicable to:
Majority interest 3,095 33,862 (9,541)
Minority interest 3 36 5
3,098 33,898 (9,536)
Net income (loss) per Series A
Share (3) 0.061 0.669 (0.037)
Net income (loss) per ADS (3) 0.550 6.020 (0.329)
Weighted average common shares
outstanding (000's) (3) 162,699 162,537
(1) Peso amounts have been translated into U.S. dollars, solely for the
convenience of the reader, at the rate of Ps. 10.951 per U.S. dollar, the
rate on March 31, 2006.
(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 first quarter
of 2006 and 2005 was Ps. 579,000 and Ps. 110,000, 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.
SOURCE Grupo Radio Centro, S.A. de C.V.
-0- 04/17/2006
/CONTACT: IR Contacts - In Mexico - Pedro Beltran, or Alfredo Azpeitia,
aazpeitia@grc.com.mx, both of Grupo Radio Centro, S.A. de C.V.,
+5255-5728-4800, ext. 7018; or In NY - Maria Barona, or Peter Majeski, both of
i-advize Corporate Communications, Inc., +1-212-406-3690, grc@i-advize.com.mx/
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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. de C.V.
(Registrant)
Date: April 18, 2006 By: /s/ Pedro Beltran Nasr
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Name: Pedro Beltran Nasr
Title: Chief Financial Officer
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