- 2016 Net Revenues Increased 7% Year-over-Year -
- 2016 Net Income Increased 31% Year-over-Year -
- 2016 Adjusted EBITDA1 Increased 11% Year-over-Year -
- Continued Strong Subscriber and Retransmission Fee Growth -
- Forecasting Mid to High Single Digit Percentage Increase in Adjusted EBITDA for 2017 -
"We have also entered into strategic long-term partnerships that we
believe will expand and complement our business. We have an
extraordinary joint venture opportunity with Canal Uno in
Net revenues were
Operating expenses were
Net income was
Adjusted EBITDA was
The Company forecasts a mid to high single digit percentage increase in
Adjusted EBITDA for 2017 driven by year-over-year growth in subscriber
and retransmission fees and advertising revenue. Comparisons to 2016 do
not include political revenue, and the forecast does not include the
Company's attributable interests in the operating results of the OTT
joint venture with Lionsgate or the Canal Uno joint venture. The Company
expects its funding requirements for both joint ventures will be
As of
1 See the Non-GAAP Reconciliations section of this earnings release for a discussion of non-GAAP financial measures used in this release.
The following tables set forth the Company's financial performance for
the three months and year ended
|
||||||||||
Comparison of Consolidated Operating Results for the Three
Months and Year Ended |
||||||||||
(amounts in thousands) | ||||||||||
Three Months Ended |
Year Ended |
|||||||||
2016 | 2015 | 2016 | 2015 | |||||||
(Unaudited) | (Audited) | |||||||||
Net revenues |
|
|
|
|
||||||
Operating Expenses: | ||||||||||
Cost of revenues | 10,646 | 11,580 | 41,293 | 41,189 | ||||||
Selling, general and administrative | 10,558 | 9,222 | 38,333 | 36,037 | ||||||
Depreciation and amortization | 4,108 | 4,289 | 16,608 | 17,218 | ||||||
Other expenses | 1,492 | 64 | 2,262 | 446 | ||||||
Loss on disposition of assets | - | 2 | 6 | 33 | ||||||
Total operating expenses | 26,804 | 25,157 | 98,502 | 94,923 | ||||||
Operating income | 12,603 | 11,079 | 40,023 | 34,867 | ||||||
Other Expenses: | ||||||||||
Interest expense, net | (2,872) | (3,015) | (11,651) | (12,086) | ||||||
Income before income taxes | 9,731 | 8,063 | 28,372 | 22,781 | ||||||
Income tax expense | (3,809) | (3,131) | (10,372) | (9,042) | ||||||
Net income |
|
|
|
|
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Reconciliation of net income to Adjusted EBITDA: | ||||||||||
Net income |
|
|
|
|
||||||
Add: | ||||||||||
Income tax expense | 3,809 | 3,131 | 10,372 | 9,042 | ||||||
Interest expense, net | 2,872 | 3,015 | 11,651 | 12,086 | ||||||
Loss on disposition of assets | - | 2 | 6 | 33 | ||||||
Depreciation and amortization | 4,108 | 4,289 | 16,608 | 17,218 | ||||||
Stock-based compensation | 2,169 | 1,452 | 4,691 | 5,575 | ||||||
Transaction & non-recurring expenses | 1,558 | 64 | 2,993 | 446 | ||||||
Adjusted EBITDA |
|
|
|
|
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Selected Financial Data: |
||||||
As of | As of | |||||
|
|
|||||
(Audited) | (Audited) | |||||
Cash |
|
|
||||
Debt (a) |
|
|
||||
Leverage ratio (b): | 3.3x | 3.8x | ||||
Net leverage ratio (c): | 0.8x | 0.7x |
(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) (amounts in thousands) |
|||||
|
|
||||
|
|||||
WAPA America (b) | 5,300 | 5,158 | |||
Cinelatino | 4,588 | 4,443 | |||
Pasiones | 4,620 | 4,374 | |||
Centroamerica TV | 4,063 | 3,967 | |||
Television Dominicana | 3,249 | 2,991 | |||
Total | 21,820 | 20,933 | |||
Latin America Cable Networks: |
|||||
Cinelatino | 15,430 | 11,891 | |||
Pasiones | 13,235 | 10,198 | |||
Total | 28,665 | 22,089 | |||
(a) | Amounts presented are based on most recent remittances received from the Company's distributors as of the respective dates shown above. | ||
(b) |
Excluding digital basic subscribers, subscribers to WAPA America on
Hispanic programming tiers increased by 5.0% from |
Non-GAAP Reconciliations
Within Hemisphere's fourth quarter 2016 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 income, if any, depreciation expense, amortization of
intangibles, loss (gain) on disposition of assets, transaction and
non-recurring expenses, income tax expense, interest 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 income to adjusted EBITDA can be found above in
the table that sets forth Hemisphere's financial performance for the
three months and year ended
Conference Call
Hemisphere will conduct a conference call to discuss its fourth quarter
and full-year 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
About
-
Cinelatino, the leading Spanish-language movie channel with over 20.0
million subscribers across the
U.S. ,Latin America andCanada , including 4.6 million subscribers in theU.S. and 15.4 million subscribers inLatin America , featuring the largest selection of contemporary Spanish-language blockbusters and critically-acclaimed titles fromMexico ,Latin America ,Spain and theCaribbean . -
WAPA, Puerto Rico's leading broadcast television network with the
highest primetime and full day ratings in
Puerto Rico . Founded in 1954, WAPA produces approximately 70 hours per week of top-rated news and entertainment programming. -
WAPA America, the leading cable network targeting Puerto Ricans and
other Caribbean Hispanics living in the
U.S. , featuring the highly-rated news and entertainment programming produced by WAPA. WAPA America is distributed in theU.S. to 5.3 million subscribers. -
Pasiones, dedicated to showcasing the most popular telenovelas and
serialized dramas, distributed in the
U.S. andLatin America . Pasiones has 4.6 million subscribers in theU.S. and 13.2 million subscribers inLatin America . -
Centroamerica TV, the leading network targeting Central Americans
living in the
U.S. , the third-largestU.S. Hispanic group, featuring the most popular news, entertainment and soccer programming fromCentral America . Centroamerica TV is distributed in theU.S. to 4.1 million subscribers. -
Television Dominicana, the leading network targeting Dominicans living
in the
U.S. , featuring the most popular news, entertainment and baseball programming from theDominican Republic . Television Dominicana is distributed in theU.S. to 3.2 million subscribers.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170303005360/en/
For
ebartsch@sloanepr.com
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