- Q2 2017 Net Revenues Increased Modestly Year-Over-Year -
- Q2 2017 Net Income Increased 3% Year-Over-Year -
- Q2 2017 Adjusted EBITDA1 Increased 4% Year-Over-Year -
- Q2 2017 Adjusted EBITDA Excluding Political Revenue Increased 9% Year-Over-Year -
- Affirms Full-Year Adjusted EBITDA Guidance -
“We continued to execute against our long-term business strategy during
the second quarter,” said
Financial Results for the Three and Six Months Ended
Net revenues were
Operating expenses were
Net income was
Adjusted EBITDA was
The Company affirms its forecast of mid to high single digit percentage
increase in Adjusted EBITDA for 2017, excluding political revenue in
2016. The forecast does not include the Company’s attributable interests
in its equity investments. The Company expects its funding requirements
for its strategic initiatives including, Canal Uno, PANTAYA and REMEZCLA
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 and six months ended
HEMISPHERE MEDIA GROUP, INC.
Comparison of Consolidated Operating Results (amounts in thousands) |
|||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||||||||
Net revenues | $ |
35,180 |
$ |
35,031 |
$ |
68,339 |
$ |
66,002 |
|||||||||||||
Operating Expenses: | |||||||||||||||||||||
Cost of revenues | 10,298 | 10,638 | 20,543 | 20,821 | |||||||||||||||||
Selling, general and administrative | 9,843 | 9,520 | 19,335 | 18,776 | |||||||||||||||||
Depreciation and amortization | 4,067 | 4,061 | 8,182 | 8,417 | |||||||||||||||||
Other expenses | 474 | 119 | 2,724 | 132 | |||||||||||||||||
Loss on disposition of assets | 2 | 16 | 2 | 15 | |||||||||||||||||
Total operating expenses | 24,684 | 24,354 | 50,786 | 48,161 | |||||||||||||||||
Operating income | 10,496 | 10,677 | 17,553 | 17,841 | |||||||||||||||||
Other Expenses: | |||||||||||||||||||||
Interest expense, net | (2,598 | ) | (2,869 | ) | (5,226 | ) | (5,825 | ) | |||||||||||||
Other income, net | 121 | - | 121 | - | |||||||||||||||||
Total other expenses | (2,477 | ) | (2,869 | ) | (5,105 | ) | (5,825 | ) | |||||||||||||
Income before income taxes | 8,019 | 7,808 | 12,448 | 12,016 | |||||||||||||||||
Income tax expense | (2,838 | ) | (2,779 | ) | (4,522 | ) | (4,287 | ) | |||||||||||||
Net income | $ | 5,181 | $ | 5,029 | $ | 7,926 | $ | 7,729 | |||||||||||||
Reconciliation of net income to Adjusted EBITDA: | |||||||||||||||||||||
Net income | $ | 5,181 | $ | 5,029 | $ | 7,926 | $ | 7,729 | |||||||||||||
Add (deduct): | |||||||||||||||||||||
Income tax expense | 2,838 | 2,779 | 4,522 | 4,287 | |||||||||||||||||
Other income, net | (121 | ) | - | (121 | ) | - | |||||||||||||||
Interest expense, net | 2,598 | 2,869 | 5,226 | 5,825 | |||||||||||||||||
Loss on disposition of assets | 2 | 16 | 2 | 15 | |||||||||||||||||
Depreciation and amortization | 4,067 | 4,061 | 8,182 | 8,417 | |||||||||||||||||
Stock-based compensation | 1,052 | 589 | 2,122 | 1,989 | |||||||||||||||||
Transaction & non-recurring expenses | 502 | 119 | 2,780 | 522 | |||||||||||||||||
Adjusted EBITDA | $ |
16,119 |
$ |
15,462 |
$ | 30,639 | $ | 28,784 | |||||||||||||
Selected Financial Data: |
||||||||
(amounts in thousands) |
||||||||
As of June 30, 2017 |
As of December 31, 2016 |
|||||||
(Unaudited) | (Audited) | |||||||
Cash | $155,520 | $163,090 | ||||||
Debt (a) | $212,280 | $213,347 | ||||||
Leverage ratio (b): | 3.2x | 3.3x | ||||||
Net leverage ratio (c): | 0.9x | 0.8x | ||||||
(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) |
|||||||||
June 30, 2017 | December 31, 2016 | June 30, 2016 | |||||||
U.S. Cable Networks: |
|||||||||
WAPA America (b) | 4,276 | 4,189 | 4,061 | ||||||
Cinelatino | 4,568 | 4,588 | 4,535 | ||||||
Pasiones | 4,635 | 4,620 | 4,483 | ||||||
Centroamerica TV | 4,096 | 4,063 | 4,022 | ||||||
Television Dominicana | 3,395 | 3,249 | 3,106 | ||||||
Total | 20,970 | 20,709 | 20,207 | ||||||
Latin America Cable Networks: |
|||||||||
Cinelatino | 16,059 | 15,430 | 12,987 | ||||||
Pasiones | 13,380 | 13,235 | 10,820 | ||||||
Total | 29,439 | 28,665 | 23,807 | ||||||
(a) | Amounts presented are based on most recent remittances received from the Company’s distributors as of the respective dates shown above. | |||||
(b) | The total above excludes digital basic subscribers. Subscribers to WAPA America including digital basic subscribers decreased 1.8% from June 30, 2016 to June 30, 2017, and decreased by 3.1% from December 31, 2016 to June 30, 2017. | |||||
Non-GAAP Reconciliations
Within Hemisphere’s second quarter 2017 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 and six months ended
Conference Call
Hemisphere will conduct a conference call to discuss its second quarter
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, statements relating to Hemisphere’s future financial and
operating results (including growth and earnings), plans, objectives,
expectations and intentions and other statements that are not historical
facts. These statements are based on the current expectations of the
management of Hemisphere and are subject to uncertainty and changes in
circumstance, which may cause actual results to differ materially from
those expressed or implied in such forward-looking statements. Without
limitation, any statements preceded or followed by or that include the
words “targets,” “plans,” “believes,” “expects,” “intends,” “will,”
“likely,” “may,” “anticipates,” “estimates,” “projects,” “should,”
“would,” “expect,” “positioned,” “strategy,” “future,” or words, phrases
or terms of similar substance or the negative thereof, are
forward-looking statements. In addition, these statements are based on a
number of assumptions that are subject to change. Factors that could
cause actual results to differ materially from those expressed or
implied by the forward-looking statements are discussed under the
headings “Risk Factors” and “Forward-Looking Statements” in Hemisphere’s
most recent Annual Report on Form 10-K, filed with the
About
-
Cinelatino, the leading Spanish-language movie channel with over 20
million subscribers across the U.S.,
Latin America andCanada , including 4.6 million subscribers in the U.S. and 16.1 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 the U.S. to 5.1 million subscribers, including digital basic subscribers.
-
Pasiones, dedicated to showcasing the most popular telenovelas and
serialized dramas, distributed in the U.S. and
Latin America . Pasiones has 4.6 million subscribers in the U.S. and 13.4 million subscribers inLatin America . -
Centroamerica TV, the leading network targeting Central Americans
living in the U.S., the third-largest U.S. Hispanic group, featuring
the most popular news, entertainment and soccer programming from
Central America . Centroamerica TV is distributed in the U.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 the
Dominican Republic . Television Dominicana is distributed in the U.S. to 3.4 million subscribers. -
Canal Uno, a partnership with leading Colombian content producers, is
one of only three national broadcast television networks in
Colombia . The partnership was awarded a 10-year renewable broadcast TV concession for Canal Uno inColombia in 2016. The concession provides the partnership with a rare opportunity to access one of Latin America’s most robust and stable economies with an attractive television advertising market. It also provides Hemisphere the opportunity to produce high quality content which can be repurposed on HMTV’s channels and syndicated internationally. The partnership began operating the network onMay 1, 2017 . -
PANTAYA, a Spanish-language over-the-top (OTT) service dedicated to
premium content for the Hispanic community in the U.S. launched
August 1, 2017 . - REMEZCLA, an influential digital media company targeting English speaking and bilingual U.S. Hispanics aged 18-35 through innovative digital content. Hemisphere’s investment is a complementary extension of its portfolio, broadening the Company’s footprint and its reach with the highly coveted Millennial audience.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170804005379/en/
Source:
Sloane & Company
Erica Bartsch, 212-446-1875
ebartsch@sloanepr.com