President and Chief Executive Officer of Hemisphere,
WAPA's quarter was highlighted by our brand new and innovative flagship newscast at
Pasiones launched on Spectrum in the second quarter, and saw its tenth consecutive quarter of ratings growth, delivering the highest ratings in its history.
CentroAmerica TV also continued its robust growth with a 47% increase in ratings compared to the second quarter of 2018. The quarter was highlighted by the
Newly-enacted legislation extended Canal 1's existing concession license for 10 years through 2037 at no additional cost, which is a tremendous result."
Financial Results for the Three and Six Months Ended
Net revenues were
Operating expenses were
Net loss attributable to
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 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, |
||||||||||
2019 |
2018 |
2019 |
2018 |
||||||||
(Unaudited) |
(Unaudited) |
||||||||||
Net revenues |
$ |
39,147 |
$ |
34,791 |
$ |
74,257 |
$ |
63,826 |
|||
Operating expenses: |
|||||||||||
Cost of revenues |
11,317 |
10,834 |
21,531 |
20,261 |
|||||||
Selling, general and administrative |
10,813 |
11,108 |
21,714 |
21,692 |
|||||||
Depreciation and amortization |
2,556 |
4,020 |
6,623 |
8,017 |
|||||||
Other expenses |
422 |
541 |
653 |
774 |
|||||||
Gain from FCC spectrum repack and other |
(45) |
(35) |
(1,507) |
(38) |
|||||||
Total operating expenses |
25,063 |
26,468 |
49,014 |
50,706 |
|||||||
Operating income |
14,084 |
8,323 |
25,243 |
13,120 |
|||||||
Other expenses, net: |
|||||||||||
Interest expense, net |
(3,005) |
(3,019) |
(5,965) |
(5,903) |
|||||||
Loss on equity investments |
(9,784) |
(8,826) |
(17,160) |
(18,621) |
|||||||
Total other expenses, net |
(12,789) |
(11,845) |
(23,125) |
(24,524) |
|||||||
Income (loss) before income taxes |
1,295 |
(3,522) |
2,118 |
(11,404) |
|||||||
Income tax expense |
(3,643) |
(1,584) |
(6,199) |
(1,261) |
|||||||
Net loss |
$ |
(2,348) |
$ |
(5,106) |
$ |
(4,081) |
$ |
(12,665) |
|||
Net (income) loss attributable to non-controlling interests |
(10) |
- |
37 |
- |
|||||||
Net loss attributable to Hemisphere Media Group, Inc. |
$ |
(2,358) |
$ |
(5,106) |
$ |
(4,044) |
$ |
(12,665) |
|||
Reconciliation of net loss attributable to Hemisphere Media Group, Inc. to Adjusted EBITDA: |
|||||||||||
Net loss attributable to Hemisphere Media Group, Inc. |
$ |
(2,358) |
$ |
(5,106) |
$ |
(4,044) |
$ |
(12,665) |
|||
Add (Deduct): |
|||||||||||
Net income (loss) attributable to non-controlling interests |
10 |
- |
(37) |
- |
|||||||
Income tax expense |
3,643 |
1,584 |
6,199 |
1,261 |
|||||||
Other expenses, net |
12,789 |
11,845 |
23,125 |
24,524 |
|||||||
Gain from FCC spectrum repack and other |
(45) |
(35) |
(1,507) |
(38) |
|||||||
Transaction and non-recurring expenses |
429 |
1,020 |
660 |
1,259 |
|||||||
Hurricane related expenses |
- |
513 |
- |
1,049 |
|||||||
Depreciation and amortization |
2,556 |
4,020 |
6,623 |
8,017 |
|||||||
Stock-based compensation |
443 |
1,002 |
1,360 |
1,998 |
|||||||
Adjusted EBITDA |
$ |
17,467 |
$ |
14,843 |
$ |
32,379 |
$ |
25,405 |
Selected Financial Data: |
||||
(amounts in thousands) |
||||
As of |
As of |
|||
June 30, 2019 |
December 31, 2018 |
|||
(Unaudited) |
(Audited) |
|||
Cash |
$79,481 |
$94,478 |
||
Debt (a) |
$208,014 |
$209,081 |
||
Leverage ratio (b): |
3.1x |
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) |
||||||||
June 30, 2019 |
December 31, 2018 |
June 30, 2018 |
||||||
U.S. Cable Networks: |
||||||||
WAPA America (b) |
4,334 |
4,417 |
4,434 |
|||||
Cinelatino |
4,611 |
4,639 |
4,652 |
|||||
Pasiones |
4,842 |
4,360 |
4,546 |
|||||
Centroamerica TV |
4,210 |
4,276 |
4,282 |
|||||
Television Dominicana |
2,421 |
2,273 |
2,026 |
|||||
Total |
20,418 |
19,965 |
19,940 |
|||||
Latin America Cable Networks: |
||||||||
Cinelatino |
16,872 |
16,769 |
16,220 |
|||||
Pasiones |
16,194 |
15,958 |
15,571 |
|||||
Total |
33,066 |
32,727 |
31,791 |
|||||
(a) Amounts presented are based on 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. |
Non-GAAP Reconciliations
Within Hemisphere's second 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 attributable to
Conference Call
Hemisphere will conduct a conference call to discuss its second 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:
(212) 704-8166
Danielle.obrien@edelman.com
(1) See the Non-GAAP Reconciliations section of this earnings release for a discussion of non-GAAP financial measures used in this release.
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