President and Chief Executive Officer of Hemisphere,
The
We are also very encouraged by the robust ratings growth in Canal 1, which increased its total day audience share by 69%, as compared to Q1 2018, including 121% growth in prime time, Monday to Friday.
Looking forward, the progress we are making across our networks and strategic investments positions us to continue to drive strong growth and long-term shareholder value."
Financial Results for the Three Months Ended
Net revenues were
Operating expenses were
Net loss available to the Company was
Adjusted EBITDA was
The Company affirms its forecast of mid-teen percentage growth in Adjusted EBITDA for the full year 2019, as compared to 2018.
As of
During the three months ended
During the three months ended
The following tables set forth the Company's financial performance for the three months ended
HEMISPHERE MEDIA GROUP, INC. |
||||
Comparison of Consolidated Operating Results |
||||
(amounts in thousands) |
||||
Three Months Ended March 31, |
||||
2019 |
2018 |
|||
(Unaudited) |
||||
Net revenues |
$ 35,110 |
$ 29,035 |
||
Operating expenses: |
||||
Cost of revenues |
10,214 |
9,427 |
||
Selling, general and administrative |
10,901 |
10,584 |
||
Depreciation and amortization |
4,067 |
3,997 |
||
Other expenses |
231 |
233 |
||
Gain from FCC spectrum repack and other |
(1,462) |
(3) |
||
Total operating expenses |
23,951 |
24,238 |
||
Operating income |
11,159 |
4,797 |
||
Other expenses: |
||||
Interest expense, net |
(2,960) |
(2,884) |
||
Loss on equity method investments |
(7,376) |
(9,795) |
||
Total other expenses |
(10,336) |
(12,679) |
||
Income (loss) before income taxes |
823 |
(7,882) |
||
Income tax (expense) benefit |
(2,556) |
323 |
||
Net loss |
$ (1,733) |
$ (7,559) |
||
Net loss attributable to non-controlling interests |
47 |
- |
||
Net loss available to the Company |
$ (1,686) |
$ (7,559) |
||
Reconciliation of net loss available to the Company to Adjusted EBITDA: |
||||
Net loss available to the Company |
$ (1,686) |
$ (7,559) |
||
Add (Deduct): |
||||
Net loss attributable to non-controlling interests |
(47) |
- |
||
Income tax expense (benefit) |
2,556 |
(323) |
||
Other expenses |
10,336 |
12,679 |
||
Gain from FCC spectrum repack and other |
(1,462) |
(3) |
||
Transaction and non-recurring expenses |
231 |
239 |
||
Hurricane related expenses |
- |
536 |
||
Depreciation and amortization |
4,067 |
3,997 |
||
Stock-based compensation |
917 |
996 |
||
Adjusted EBITDA |
$ 14,912 |
$ 10,562 |
||
Selected Financial Data: |
||||
(amounts in thousands) |
||||
As of |
As of |
|||
March 31, 2019 |
December 31, 2018 |
|||
(Unaudited) |
(Audited) |
|||
Cash |
$86,205 |
$94,478 |
||
Debt (a) |
$208,547 |
$209,081 |
||
Leverage ratio (b): |
3.2x |
3.5x |
||
Net leverage ratio (c): |
1.9x |
1.9x |
________________________________________
(a) Represents the aggregate principal amount of the debt.
(b) Represents gross debt divided by Adjusted EBITDA for the last twelve months. This ratio differs from the calculation contained in the Company's amended term loan.
(c) Represents gross debt less cash divided by Adjusted EBITDA for the last twelve months. This ratio differs from the calculation contained in the Company's amended term loan.
The following table presents estimated subscriber information (unaudited):
Subscribers (a) |
|||||||
March 31, 2019 |
December 31, |
March 31, |
|||||
U.S. Cable Networks: |
|||||||
WAPA America (b) |
4,381 |
4,417 |
4,383 |
||||
Cinelatino |
4,608 |
4,639 |
4,543 |
||||
Pasiones (c) |
4,272 |
4,360 |
4,448 |
||||
Centroamerica TV |
4,239 |
4,276 |
4,203 |
||||
Television Dominicana |
2,370 |
2,273 |
1,942 |
||||
Total |
19,870 |
19,965 |
19,519 |
||||
Latin America Cable Networks: |
|||||||
Cinelatino |
17,174 |
16,769 |
16,123 |
||||
Pasiones |
16,170 |
15,958 |
15,230 |
||||
Total |
33,344 |
32,727 |
31,353 |
________________________________________
(a) Amounts presented are based on the most recent remittances received from the Company's distributors as of the respective dates shown above, which are typically two months prior to the dates shown above.
(b) Excludes digital basic subscribers. Subscribers to WAPA America including digital basic subscribers decreased 1.4% from
(c) Does not include subscribers added pursuant to the launch of Pasiones on Spectrum on April 1, 2019.
Non-GAAP Reconciliations
Within Hemisphere's first quarter 2019 press release, Hemisphere makes reference to the non-GAAP financial measure, "Adjusted EBITDA." Whenever such information is presented, Hemisphere has complied with the provisions of the rules under Regulation G and Item 2.02 of Form 8-K. When presenting Adjusted EBITDA, Hemisphere's management adds back (deducts) from net loss available to the Company, net loss attributable to non-controlling interest, depreciation expense, amortization of intangibles, gain from FCC spectrum repack and other, transaction and non-recurring expenses, hurricane related expenses, income tax expense, and stock-based compensation. The specific reasons why Hemisphere's management believes that the presentation of this non-GAAP financial measure provides useful information to investors regarding Hemisphere's financial condition, results of its operations and cash flows has been provided in the Form 8-K filed in connection with this press release. A reconciliation of net loss available to the Company to Adjusted EBITDA can be found above in the table that sets forth Hemisphere's financial performance for the three months ended
Conference Call
Hemisphere will conduct a conference call to discuss its first quarter 2019 results at
A replay of the call will be available beginning at approximately
Forward-Looking Statements
Statements in this press release and oral statements made from time to time by representatives of Hemisphere may contain certain statements about Hemisphere and its consolidated subsidiaries that are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These include, but are not limited to, the effects of Hurricane Maria in the short and long-term on Hemisphere's business and the advertising market in
About
Contact:
Edelman Financial Communications for
(646) 277-1289
Danielle.obrien@edelman.com
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