Grupo Radio Centro Reports Third Quarter and Nine Months of 2012 Results

   Grupo Radio Centro Reports Third Quarter and Nine Months of 2012 Results

PR Newswire

MEXICO CITY, Oct. 26, 2012

MEXICO CITY, Oct. 26, 2012 /PRNewswire/ -- Grupo Radio Centro, S.A.B. de C.V.
(NYSE: RC, BMV: RCENTRO-A) (the "Company"), one of Mexico's leading radio
broadcasting companies, announced today its results of operations for the
third quarter and nine months ended September 30, 2012. All figures were
prepared in accordance with International Financial Reporting Standards
(IFRS).

Third Quarter Results

The Company's broadcasting revenue for the third quarter of 2012 totaled
Ps.264,474,000, a 3.6% increase compared to the Ps. 255,215,000 reported for
the third quarter of 2011. This increase was mainly attributable to higher
advertising expenditures by the Company's clients in Mexico, who purchased
more airtime during the third quarter of 2012 compared to the same period of
2011.

The Company's broadcasting expenses (excluding depreciation, amortization and
corporate expenses) for the third quarter of 2012 totaled Ps.184,410,000, a
5.2% increase compared to the Ps. 175,318,000 reported for the third quarter
of 2011. This increase was mainly due to (i) higher research expenses related
to IBOPE, (ii)  higher commissions paid to the Company's sales force and to
advertising agencies due to the increase in broadcasting revenue and (iii)
higher maintenance expenses.

The Company's depreciation and amortization expenses for the third quarter of
2012 totaled Ps.5,225,000, a 17.5% decrease compared to the Ps.6,337,000
reported for the third quarter of 2011. This decrease was attributable to a
reduction in the amount of depreciable assets.

The Company's corporate expenses for the third quarter of 2012 totaled
Ps.2,808,000, the same amount reported for the third quarter of 2011.

The Company's operating income for the third quarter of 2012 totaled
Ps.72,031,000, a slight increase compared to the Ps.70,752,000 reported for
the third quarter of 2011. 

The Company's other expenses, net for the third quarter of 2012 totaled
Ps.59,867,000, a significant increase compared to the Ps.12,581,000 reported
for the third quarter of 2011. This increase was mainly attributable to (i)
legal expenses incurred during the third quarter of 2012 in connection with
the transaction involving the KXOS-FM radio station assets, which is described
in greater detail below, (ii) expenses incurred in connection with the
Gutierrez Vivo and Infored legal proceedings, and (iii) higher expenses
related to fees paid to the Company's executive committee.

The Company's finance costs for the third quarter of 2012 totaled
Ps.2,639,000, a 50.1% decrease compared to the Ps.5,293,000 reported for the
third quarter of 2011. This decrease was mainly attributable to the total
repayment of the Company's loan with Banco Inbursa, S.A. on August 3, 2012.

The Company's profit before income taxes for the third quarter of 2012 totaled
Ps. 9,525,000, a 82.0% decrease compared to the Ps. 52,878,000 reported for
the same period of 2011. This decrease was mainly attributable to the
increase in other expenses net, described above.

The Company's income tax provision for the third quarter of 2012 totaled Ps.
1,134,000, as a negative provision, a significant decrease compared to the
Ps.21,768,000 recorded in the third quarter of 2011. This decrease was
mainly due to certain tax benefits obtained.

As a result of the foregoing, the Company's profit in the third quarter of
2012 totaled Ps.10,659,000, a 65.7% decrease compared to the profit of Ps.
31,110,000 recorded for the third quarter of 2011.

Nine-Month Results

The Company's broadcasting revenue for the nine months ended September 30,
2012 totaled Ps.742,020,000, a 10.0% increase compared to the Ps.674,412,000
reported for the same period of 2011. This increase was mainly attributable to
higher advertising expenditures by the Company's clients in Mexico, who
purchased more airtime during the nine months of 2012 compared to the same
period of 2011.

The Company's broadcasting expenses (excluding depreciation, amortization and
corporate expenses) for the nine months of 2012 totaled Ps.543,228,000, a
5.8% increase compared to the Ps.513,516,000 reported for the same period of
2011. This increase was primarily due to (i) higher commissions paid to the
Company's sales force and to advertising agencies due to the increase in
broadcasting revenue, (ii) higher maintenance expenses  and (iii) an increase
in production costs for talk shows programs. 

The Company's depreciation and amortization expenses for the nine months of
2012 totaled Ps.15,676,000, a 10.6% decrease compared to the Ps.17,525,000
reported for the same period of 2011. This decrease was due to a reduction in
the amount of depreciable assets for the nine months of 2012 compared to the
same period of 2011.

The Company's corporate expenses for the nine months of 2012 totaled Ps.
10,365,000, the same amount reported for the same period of 2011.

The Company's operating income for the nine months of 2012 totaled
Ps.172,751,000, a 29.9% increase compared to the Ps. 133,006,000 reported for
the same period of 2011. This increase was mainly a result of the increase in
broadcasting revenue during 2012.

The Company's other expenses, net for the nine months of 2012 totaled
Ps.103,572,000, a significant increase compared to the Ps.43,784,000
reported for the same period of 2011. This increase was mainly attributable to
(i) legal expenses incurred during the third quarter of 2012 in connection
with the transaction involving KXOS-FM radio station assets, which is
described in greater detail below, (ii) expenses incurred in connection with
the Gutierrez Vivo and Infored legal proceedings, and (iii) higher expenses
related to fees paid to the Company's executive committee.

The Company's finance costs for the nine months of 2012 totaled Ps.9,812,000,
a decrease of 37.4% compared to the Ps. 15,677,000 reported for the same
period of 2011. This decrease was mainly attributable to the total repayment
of the Company's loan with Banco Inbursa, S.A. on August 3, 2012.

The Company's profit before income tax for the nine months of 2012 totaled
Ps.59,367,000, a 19.3% decrease compared to the profit before income tax of
Ps.73,545,000 reported for the same period of 2011. This decrease was mainly
due to the aforementioned increase in other expenses.

For the nine months of 2012, the Company's income tax provision totaled
Ps.3,652,000, as a negative provision compared to the income tax of
Ps.43,344,000 recorded for the same period of 2011. This decrease was mainly
the result of certain tax benefits obtained.

As a result of the foregoing, the Company's profit in the nine months of 2012
totaled Ps.63,019,000, an increase of 108.7% compared to Ps.30,201,000
profit for the same period of 2011.

Other Matters:

In August 23, 2012, the Company announced that the KXOS-FM radio station
assets have been acquired by a newly-formed entity, 93.9 Holdings, Inc.,
pursuant to the Put and Call Agreement entered into with Emmis Communications
Corporation and certain of its subsidiaries (collectively, "Emmis") in April
2009, which was amended in April of this year to reduce the purchase price to
US$85.5 million. 

The acquiring entity, 93.9 Holdings, Inc., is controlled by 93.9 Investment,
LLC, which is wholly owned by certain members of the Aguirre family who are
U.S. citizens. GRC's wholly-owned subsidiary, Grupo Radio Centro LA, LLC
("GRC-LA"), owns a 25% equity stake in 93.9 Holdings, Inc., and GRC-LA and
93.9 Investment, LLC have entered into a shareholders' agreement relating to
their interests in 93.9 Holdings, Inc. Pursuant to this shareholders'
agreement, GRC-LA will have certain customary minority shareholder rights,
including those relating to extraordinary corporate transactions, and has a
call option to acquire, subject to compliance with the rules and regulations
of the Federal Communications Commission, the equity in 93.9 Holdings, Inc.
held by 93.9 Investment, LLC, at a purchase price based on the amount of
capital contributed by 93.9 Investment, LLC to 93.9 Holdings, Inc. 

In order to finance the acquisition, 93.9 Holdings, Inc. entered into a US$90
million senior secured credit facility guaranteed by GRC and certain of its
operating subsidiaries with a group of lenders for which Credit Suisse
Securities (USA) LLC acted as the lead arranger. The credit facility provides
for a term loan in two tranches, one of which has a five-year term and the
other of which has a seven-year term. The principal amounts borrowed under
the credit facility are required to be repaid in accordance with a graduated
amortization schedule that requires 93.9 Holdings, Inc. to start repaying, on
a quarterly basis, the amounts borrowed under the five-year tranche in six
months and the amounts borrowed under the seven-year tranche in 18 months. In
addition to being guaranteed by GRC and certain of its operating subsidiaries,
the credit facility is secured by a first priority lien on substantially all
of 93.9 Holdings, Inc.'s and its subsidiary's assets and substantially all of
GRC's property, including its corporate headquarters. The guarantee agreement
entered into by GRC and certain of its subsidiaries requires GRC to maintain
certain financial ratios, and comply with other financial conditions that,
among other things, limit its ability to incur additional indebtedness, pay
dividends, pledge assets and enter into transactions with affiliates. 

As a result of this acquisition, the Local Programming and Marketing Agreement
("LMA") for the KXOS-FM radio station entered into between GRC-LA and Emmis on
April 3, 2009 has been terminated. GRC-LA and 93.9 Holdings, Inc. have
entered into a new LMA effective as of August 23, 2012 pursuant to which
GRC-LA will continue to provide programming to, and sell advertising time, on
KXOS-FM on substantially the same terms and conditions as the LMA that had
been entered into with Emmis, except that the fees payable by GRC-LA will be
equal, in any period, to the debt service requirements of 93.9 Holdings, Inc.
for such period under the credit facility described above. GRC-LA will also
be required to reimburse 93.9 Holdings, Inc. for any expenses incurred by it
with respect to the KXOS-FM radio station

Company Description

Grupo Radio Centro owns and/or operates 15 radio stations. Of these 15 radio
stations, 6 FM and 6 AM are located in Mexico City, one AM station in
Guadalajara and Monterrey, respectively, and one FM station in Los Angeles.
The Company's principal activities are the production and broadcasting of
musical and entertainment programs, talk shows, news and special events
programs. Revenue is primarily derived from the sale of commercial airtime.
In addition, the Company also operates Organizacion Impulsora de Radio (OIR),
a radio network that acts as the national sales representative for, and
provides programming to 130 Grupo Radio Centro-affiliated radio stations
throughout Mexico.

Note on Forward Looking Statements

This release may contain projections or other forward-looking statements
related to Grupo Radio Centro that involve risks and uncertainties. Readers
are cautioned that these statements are only predictions and may differ
materially from actual future results or events. Readers are referred to the
documents filed by Grupo Radio Centro with the United States Securities and
Exchange Commission, specifically the most recent filing on Form 20-F, which
identifies important risk factors that could cause actual results to differ
from those contained in the forward-looking statements. All forward-looking
statements are based on information available to Grupo Radio Centro on the
date hereof, and Grupo Radio Centro assumes no obligation to update such
statements.

IR Contacts
In Mexico:                         In NY:
Pedro Beltran / Alfredo Azpeitia   Maria Barona / Peter Majeski
Grupo Radio Centro, S.A.B. de C.V. i-advize Corporate Communications, Inc.
Tel: (5255) 5728-4800 Ext. 4910    Tel: (212) 406-3690
aazpeitia@grc.com.mx               grc@i-advize.com.mx

GRUPO RADIO CENTRO, S.A.B. DE C.V.
CONSOLIDATED UNAUDITED BALANCE SHEETS
as of September 30, 2012 and 2011
(figures in thousands of Mexican pesos ("Ps.") and U.S. dollars ("U.S. $")
(1)
                                September 30,
                                2012                              2011
                                U.S. $(1)        Ps.              Ps.
ASSETS
Current assets:
Cash and cash equivalents      5,559            71,807           135,463
Accounts receivable:
Broadcasting receivables -
Net                             19,404           250,647          252,946
Other receivables              1,651            21,320           8,976
Income taxes recoverable       2,777            35,872           1,782
                                23,832           307,839          263,704
Prepaid expenses                4,444            57,407           34,009
Total current assets           33,835           437,053          433,176
Property and equipment          37,354           482,502          427,820
Other Deposits                  3,789            48,947           0
Other Investments               250              3,229            0
Deferred charges, net           169              2,181            3,723
Goodwill                        64,168           828,863          828,863
Other assets                    294              3,775            3,404
Total assets                    139,859          1,806,550        1,696,986
LIABILITIES
Current liabilities:
Current portion of
long-term debt                  0                0                40,792
Deferred revenue               7,821            101,019          100,581
Accounts payable and
accrued expenses                6,685            86,344           65,219
Taxes payable                  2,626            33,919           35,845
  Total current
liabilities                     17,132           221,282          242,437
Non-current liabilities:
Long-term debt                 0                0                60,000
Employee benefits              6,048            78,125           62,361
Deferred taxes                 2,195            28,351           23,842
  Total liabilities           25,375           327,758          388,640
STOCKHOLDERS' EQUITY
Common stock                    82,059           1,059,962        1,059,962
Retained earnings               29,961           387,009          215,972
Reserve for repurchase of
shares                          2,322            29,989           29,989
Other comprehensive income      125              1,618            2,105
Equity attributable to
owners of the Company           114,467          1,478,578        1,308,028
Non-controlling Interest        17               214              318
  Total equity                114,484          1,478,792        1,308,346
  Total liabilities and
Stockholders' equity            139,859          1,806,550        1,696,986
(1) Peso amounts have been translated into U.S. dollars, solely for the
convenience of the reader, at the rate of Ps. 12.917 per U.S. dollar, the
rate on September 30, 2012

GRUPO RADIO CENTRO, S.A.B. DE C.V.
CONSOLIDATED UNAUDITED STATEMENTS OF INCOME
for the three-month and nine-month periods ended September 30, 2012 and 2011
(figures in thousands of Mexican pesos ("Ps.") and U.S. dollars ("U.S.
$")(1), except per Share and per ADS amounts)
                 3rd Quarter                     Accumulated 9 months
                 2012                  2011      2012                2011
                 U.S.$                           U.S.$
                 (1)        Ps.        Ps.       (1)      Ps.        Ps.
Broadcasting
revenue (2)      20,475     264,474    255,215   57,445   742,020    674,412
Broadcasting
expenses,
excluding
depreciation,
amortization and
corporate
expenses         14,277     184,410    175,318   42,055   543,228    513,516
Depreciation and
amortization     405        5,225      6,337     1,214    15,676     17,525
Corporate
expenses         217        2,808      2,808     802      10,365     10,365
Operating income 5,576      72,031     70,752    13,374   172,751    133,006
Other expenses,
net              (4,635)    (59,867)   (12,581)  (8,018)  (103,572)  (43,784)
Finance costs:
Interest
expense          (233)      (3,016)    (4,895)   (774)    (9,993)    (15,266)
Interest income
(2)              5          65         0         15       190        2
Income (loss)
on foreign
currency
exchange, net    24         312        (398)     (1)      (9)        (413)
Net finance
costs            (204)      (2,639)    (5,293)   (760)    (9,812)    (15,677)
Profit before
income taxes     737        9,525      52,878    4,596    59,367     73,545
Income tax
expense          (88)       (1,134)    21,768    (283)    (3,652)    43,344
Profit (loss)
for the period   825        10,659     31,110    4,879    63,019     30,201
Profit (loss)
applicable to:
Majority
interest         825        10,658     31,109    4,879    63,018     30,197
Minority
interest         0          1          1         0        1          4
                 825        10,659     31,110    4,879    63,019     30,201
Net income
(loss) per
Series A Share
(3)                                              0.099    1.2802     0.6335
Net income
(loss) per ADS
(3)                                              0.892    11.5218    5.7015
Weighted average
common shares
outstanding
(000's) (3)                                               162,725    162,725
(1) Peso amounts have been translated into U.S. dollars, solely for the
convenience of the reader, at the rate of Ps. 12.917 per U.S. dollar, the
rate on September 30, 2012
(2) Broadcasting revenue for a particular period includes (as a
reclassification of interest income) interest earned on funds received by the
Company pursuant to advance sales of commercial air time to the extent that
the underlying funds were earned by the Company during the period in
question. Advances from advertisers are recognized as broadcasting revenue
only when the corresponding commercial air time has been transmitted.
Interest earned and treated as broadcasting revenue for the third quarter of
2012 and 2011 was Ps. 1,470,000 and Ps. 1,215,000, respectively. Interest
earned and treated as broadcasting revenue for the nine months ended
September 30, 2012 and 2011 was Ps. 3,808,000 and Ps. 2,238,000,
respectively
(3) Earnings per share calculations are made for the last twelve months as of
the date of the income statement, as required by the Mexican Stock Exchange.

SOURCE Grupo Radio Centro S.A.B de C.V.