President and Chief Executive Officer of Hemisphere,
While
Our U.S. channels continue to perform very well. Pasiones continued its strong momentum, marking its eleventh consecutive quarter of year-over-year growth. WAPA America achieved its highest rated quarter ever. Centroamerica TV also posted another quarter of strong ratings growth, increasing total day ratings by an impressive 49% year-over-year.
Our strategic investments, Pantaya and Canal 1, continue to show strong growth. Pantaya ended the third quarter with approximately 500,000 subscribers, and has recently released two acclaimed hit series, which should drive robust growth in the fourth quarter and beyond. In
As of
Given the impact of the political unrest on the
Financial Results for the Three and Nine Months Ended
Net revenues were
Net revenues were
Operating expenses were
Operating expenses were
Net loss attributable to
Adjusted EBITDA was
Due to the impact of the political unrest on the
As of
During the three months ended
The following tables set forth the Company's financial performance for the three and nine months ended
HEMISPHERE MEDIA GROUP, INC. |
|||||||
Comparison of Consolidated Operating Results |
|||||||
(amounts in thousands) |
|||||||
Three Months Ended |
Nine Months Ended |
||||||
2019 |
2018 |
2019 |
2018 |
||||
(Unaudited) |
(Unaudited) |
||||||
Net revenues |
$ 35,846 |
$ 37,239 |
$ 110,103 |
$ 101,065 |
|||
Operating expenses: |
|||||||
Cost of revenues |
10,445 |
11,039 |
31,976 |
31,300 |
|||
Selling, general and administrative |
11,869 |
11,095 |
33,583 |
32,787 |
|||
Depreciation and amortization |
2,581 |
4,023 |
9,204 |
12,040 |
|||
Other expenses |
530 |
193 |
1,183 |
967 |
|||
Gain from FCC spectrum repack and other |
(154) |
(936) |
(1,661) |
(974) |
|||
Total operating expenses |
25,271 |
25,414 |
74,285 |
76,120 |
|||
Operating income |
10,575 |
11,825 |
35,818 |
24,945 |
|||
Other expenses, net: |
|||||||
Interest expense, net |
(3,113) |
(3,073) |
(9,078) |
(8,976) |
|||
Loss on equity method investments |
(6,888) |
(8,657) |
(24,048) |
(27,278) |
|||
Gain from insurance proceeds |
- |
2,080 |
- |
2,080 |
|||
Total other expenses, net |
(10,001) |
(9,650) |
(33,126) |
(34,174) |
|||
Income (loss) before income taxes |
574 |
2,175 |
2,692 |
(9,229) |
|||
Income tax expense |
(3,743) |
(3,229) |
(9,942) |
(4,490) |
|||
Net loss |
$ (3,169) |
$ (1,054) |
$ (7,250) |
$ (13,719) |
|||
Net loss attributable to noncontrolling interests |
- |
- |
37 |
- |
|||
Net loss attributable to Hemisphere Media Group, Inc. |
$ (3,169) |
$ (1,054) |
$ (7,213) |
$ (13,719) |
|||
Reconciliation of net loss attributable to Hemisphere Media Group, Inc. to Adjusted EBITDA: |
|||||||
Net loss attributable to Hemisphere Media Group, Inc. |
$ (3,169) |
$ (1,054) |
$ (7,213) |
$ (13,719) |
|||
Add (Deduct): |
|||||||
Net loss attributable to noncontrolling interests |
- |
- |
(37) |
- |
|||
Income tax expense |
3,743 |
3,229 |
9,942 |
4,490 |
|||
Other expenses, net |
10,001 |
9,650 |
33,126 |
34,174 |
|||
Gain from FCC spectrum repack and other |
(154) |
(936) |
(1,661) |
(974) |
|||
Transaction and non-recurring expenses |
530 |
220 |
1,190 |
1,479 |
|||
Depreciation and amortization |
2,581 |
4,023 |
9,204 |
12,040 |
|||
Stock-based compensation |
2,175 |
969 |
3,535 |
2,967 |
|||
Hurricane related expenses |
- |
- |
- |
1,048 |
|||
Adjusted EBITDA |
$ 15,707 |
$ 16,101 |
$ 48,086 |
$ 41,505 |
Selected Financial Data: |
||||
(amounts in thousands) |
||||
As of |
As of |
|||
September 30, 2019 |
December 31, 2018 |
|||
(Unaudited) |
(Audited) |
|||
Cash |
$85,227 |
$94,478 |
||
Debt |
$207,480 |
$209,081 |
||
Leverage ratio (a): |
3.1x |
3.5x |
||
Net leverage ratio (b): |
1.8x |
1.9x |
_________________________ |
(a) 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. |
(b) 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) |
|||||||
U.S. Cable Networks: |
September 30, 2019 |
December 31, 2018 |
September 30, 2018 |
||||
WAPA America (b) |
4,290 |
4,417 |
4,508 |
||||
Cinelatino |
4,497 |
4,639 |
4,745 |
||||
Pasiones |
4,739 |
4,360 |
4,573 |
||||
Centroamerica TV |
4,126 |
4,276 |
4,358 |
||||
Television Dominicana Total |
2,396 |
2,273 |
2,229 |
||||
20,048 |
19,965 |
20,413 |
|||||
Latin America Cable Networks: |
|||||||
Cinelatino |
16,165 |
16,769 |
16,365 |
||||
Pasiones |
16,686 |
15,958 |
16,004 |
||||
Total |
32,851 |
32,727 |
32,369 |
______________________ |
|
(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 third 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 third 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:
Edelman Financial Communications for
(212) 704-8166
Danielle.obrien@edelman.com
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