President and Chief Executive Officer of Hemisphere,
"We have a proven playbook for times of crisis and have been able to ensure uninterrupted production of news and entertainment content across all of our channels. As a result, our networks in the
"In the
"Pantaya, our streaming platform in partnership with Lionsgate, continues to deliver strong growth, and has now reached approximately 800,000 subscribers.
"We continue to focus on operating our business efficiently and maintaining our solid financial position. We grew our cash position in the quarter to
Financial Results for the Three and Six Months Ended
Net revenues were
Operating expenses were
Net loss attributable to
Adjusted EBITDA was
As of
The following tables set forth the Company's financial performance for the three and six months ended
Comparison of Consolidated Operating Results |
|||||||
(amounts in thousands) |
|||||||
Three Months Ended |
Six Months Ended |
||||||
2020 |
2019 |
2020 |
2019 |
||||
(Unaudited) |
(Unaudited) |
||||||
Net revenues |
$ 34,735 |
$ 39,147 |
$ 67,144 |
$ 74,257 |
|||
Operating expenses: |
|||||||
Cost of revenues |
12,560 |
11,317 |
23,527 |
21,531 |
|||
Selling, general and administrative |
10,208 |
10,813 |
21,441 |
21,714 |
|||
Depreciation and amortization |
2,794 |
2,556 |
5,925 |
6,623 |
|||
Other expenses |
27 |
422 |
3,048 |
653 |
|||
Loss (gain) from FCC spectrum repack and other |
182 |
(45) |
173 |
(1,507) |
|||
Total operating expenses |
25,771 |
25,063 |
54,114 |
49,014 |
|||
Operating income |
8,964 |
14,084 |
13,030 |
25,243 |
|||
Other expenses, net: |
|||||||
Interest expense, net |
(2,496) |
(3,005) |
(5,282) |
(5,965) |
|||
Loss on equity investments |
(10,189) |
(9,784) |
(17,208) |
(17,160) |
|||
Impairment of equity method investment |
- |
- |
(5,479) |
- |
|||
Total other expenses, net |
(12,685) |
(12,789) |
(27,969) |
(23,125) |
|||
(Loss) income before income taxes |
(3,721) |
1,295 |
(14,939) |
2,118 |
|||
Income tax expense |
(2,884) |
(3,643) |
(1,209) |
(6,199) |
|||
Net loss |
$ (6,605) |
$ (2,348) |
$ (16,148) |
$ (4,081) |
|||
Net (income) loss attributable to non-controlling interests |
(77) |
(10) |
38 |
37 |
|||
Net loss attributable to |
$ (6,682) |
$ (2,358) |
$ (16,110) |
$ (4,044) |
|||
Reconciliation of net loss attributable to |
|||||||
Net loss attributable to |
$ (6,682) |
$ (2,358) |
$ (16,110) |
$ (4,044) |
|||
Add (Deduct): |
|||||||
Net income (loss) attributable to non-controlling interests |
77 |
10 |
(38) |
(37) |
|||
Income tax expense |
2,884 |
3,643 |
1,209 |
6,199 |
|||
Impairment of equity method investment |
- |
- |
5,479 |
- |
|||
Loss on equity method investments |
10,189 |
9,784 |
17,208 |
17,160 |
|||
Interest expense, net |
2,496 |
3,005 |
5,282 |
5,965 |
|||
Loss (gain) from FCC spectrum repack and other |
182 |
(45) |
173 |
(1,507) |
|||
Transaction and non-recurring expenses |
27 |
429 |
3,048 |
660 |
|||
Depreciation and amortization |
2,794 |
2,556 |
5,925 |
6,623 |
|||
Stock-based compensation |
1,356 |
443 |
2,636 |
1,360 |
|||
Adjusted EBITDA |
$ 13,323 |
$ 17,467 |
$ 24,812 |
$ 32,379 |
Selected Financial Data: |
||||
(amounts in thousands) |
||||
As of |
As of |
|||
|
|
|||
(Unaudited) |
(Audited) |
|||
Cash |
|
|
||
Debt (a) |
|
|
||
Leverage ratio (b): |
3.5x |
3.1x |
||
Net leverage ratio (c): |
1.7x |
1.7x |
_______________________________ |
(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) |
||||||||||
|
|
|
||||||||
|
||||||||||
WAPA America (b) |
3,847 |
4,140 |
4,334 |
|||||||
Cinelatino |
3,958 |
4,364 |
4,611 |
|||||||
Pasiones |
4,278 |
4,626 |
4,842 |
|||||||
Centroamerica TV |
3,598 |
3,976 |
4,210 |
|||||||
Television Dominicana |
2,213 |
2,345 |
2,421 |
|||||||
Total |
17,894 |
19,451 |
20,418 |
|||||||
Latin America Cable Networks: |
||||||||||
Cinelatino |
14,081 |
16,132 |
16,872 |
|||||||
Pasiones |
13,935 |
16,763 |
16,194 |
|||||||
Total |
28,016 |
32,895 |
33,066 |
|||||||
___________________________ |
|
(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 2020 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 2020 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
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