- Q3 Year-over-Year Net Revenues Increased 9.3%
- Q3 Year-over-Year Adjusted EBITDA Increased 7.2%
- Continued Solid Subscriber Growth
- Tightening Guidance to Mid-Teens Growth Rate for Full-Year Adjusted EBITDA
On
Net revenues increased
Operating expenses were
Net income was
Adjusted EBITDA was
The following tables set forth the Company's financial performance for the three and nine months ended September, 2015 and 2014 (in thousands):
Three Months Ended |
Nine Months Ended |
||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Net revenues | $ | 31,465 | $ | 28,781 | $ | 93,554 | $ | 78,787 | |||||||||
Operating Expenses: | |||||||||||||||||
Cost of revenues | 10,249 | 9,174 | 29,609 | 26,067 | |||||||||||||
Selling, general and administrative | 8,907 | 8,353 | 26,816 | 23,473 | |||||||||||||
Depreciation and amortization | 4,283 | 4,668 | 12,929 | 12,077 | |||||||||||||
Other expenses | 75 | 972 | 381 | 1,282 | |||||||||||||
Loss on disposition of assets | - | 55 | 31 | 70 | |||||||||||||
Total operating expenses | 23,514 | 23,222 | 69,766 | 62,969 | |||||||||||||
Operating income | 7,951 | 5,559 | 23,788 | 15,818 | |||||||||||||
Other Expenses: | |||||||||||||||||
Interest expense, net | (3,080 | ) | (3,029 | ) | (9,071 | ) | (8,871 | ) | |||||||||
Loss on extinguishment of debt | - | (1,116 | ) | - | (1,116 | ) | |||||||||||
(3,080 | ) | (4,145 | ) | (9,071 | ) | (9,987 | ) | ||||||||||
Income before income taxes | 4,871 | 1,414 | 14,717 | 5,831 | |||||||||||||
Income tax (expense) benefit | (1,961 | ) | (751 | ) | (5,912 | ) | 399 | ||||||||||
Net income | $ | 2,910 | $ | 663 | $ | 8,805 | $ | 6,230 | |||||||||
Reconciliation of net income to Adjusted EBITDA: | |||||||||||||||||
Net income | $ | 2,910 | $ | 663 | $ | 8,805 | $ | 6,230 | |||||||||
Add (deduct): | |||||||||||||||||
Income tax expense (benefit) | 1,961 | 751 | 5,912 | (399 | ) | ||||||||||||
Interest expense, net | 3,080 | 3,029 | 9,071 | 8,871 | |||||||||||||
Loss on extinguishment of debt | - | 1,116 | - | 1,116 | |||||||||||||
Loss on disposition of assets | - | 55 | 31 | 70 | |||||||||||||
Depreciation and amortization | 4,283 | 4,668 | 12,929 | 12,077 | |||||||||||||
Stock-based compensation | 1,436 | 1,390 | 4,123 | 4,606 | |||||||||||||
Transaction expenses | 75 | 972 | 381 | 1,282 | |||||||||||||
Non-recurring items | - | 173 | - | 173 | |||||||||||||
Adjusted EBITDA | $ | 13,745 | $ | 12,817 | $ | 41,252 | $ | 34,026 |
Selected Balance Sheet Data: |
|||||||
As of | As of | ||||||
|
|
||||||
(Unaudited) | (Audited) | ||||||
Cash | $ | 170,399 | $ | 142,010 | |||
Debt | $ | 222,188 | $ | 221,791 | |||
Leverage ratio (a): | 3.9 | x | |||||
Net leverage ratio (b): | 0.9 | x | |||||
(a) |
Represents the sum of gross debt and the unamortized balance of
original issue discount of |
||
(b) |
Represents the sum of net debt and the unamortized balance of
original issue discount of |
||
The following table presents estimated subscriber information:
Subscribers (a) |
||||||
(amounts in thousands) | ||||||
|
|
|||||
U.S. Cable Networks: |
||||||
WAPA America (b) | 5,166 | 5,115 | ||||
Cinelatino | 4,442 | 4,297 | ||||
Pasiones | 4,367 | 4,004 | ||||
Centroamerica TV | 3,978 | 3,571 | ||||
Television Dominicana | 2,976 | 2,437 | ||||
Total | 20,929 | 19,424 | ||||
Latin America Cable Networks: |
||||||
Cinelatino | 11,461 | 10,544 | ||||
Pasiones | 9,712 | 8,702 | ||||
Total | 21,173 | 19,246 | ||||
|
(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 3.3% from |
||
Non-GAAP Reconciliations
Within Hemisphere's third quarter 2015 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. The specific reasons why Hemisphere's management believes that the presentation of this non-GAAP financial measures provides useful information to investors regarding Hemisphere's financial condition, results of operations and cash flows has been provided in the Form 8-K filed in connection with this press release.
Conference Call
Hemisphere will conduct a conference call to discuss its first quarter
financial results at
A replay of the call will be available beginning at approximately
Forward-Looking Statements
This press release may contain certain statements about Hemisphere 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 heading "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 15
million subscribers across the U.S.,
Latin America andCanada , including 4.4 million subscribers in the U.S. and 11.5 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 more than 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 5.2 million subscribers.
-
Pasiones, dedicated to showcasing the most popular telenovelas and
drama series, distributed in the U.S. and
Latin America . Pasiones has 4.4 million subscribers in the U.S. and 9.7 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 4.0 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 3.0 million subscribers.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151109005888/en/
ebartsch@sloanepr.com
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