Hemisphere Media Announces Pro Forma First Quarter 2013 Financial Results

  Hemisphere Media Announces Pro Forma First Quarter 2013 Financial Results

Business Wire

MIAMI -- May 15, 2013

Hemisphere Media Group, Inc. (NASDAQ: HMTV) (“Hemisphere”), the only publicly
traded pure-play U.S. media company targeting the high growth Hispanic
TV/cable networks business, today announced financial results for the quarter
ended March 31, 2013.

On April 4, 2013, Hemisphere completed a series of mergers pursuant to which
InterMedia Español Holdings, LLC, (“WAPA”), which includes WAPA America and
WAPA TV, Cine Latino, Inc. (“Cinelatino”) and Azteca Acquisition Corporation
(“Azteca”), a special purpose acquisition company each became indirect, wholly
owned subsidiaries of Hemisphere (the “Transaction”). As a newly formed
holding company in connection with the Transaction, Hemisphere neither engaged
in any operations nor generated any revenues from operations from inception
through the quarter ended March 31, 2013. Hemisphere is presenting the pro
forma results of operations for the quarter ended March 31, 2013 in this
earnings release as if the merger of WAPA and Cinelatino was consummated on
January 1, 2013. For the three months ended March 31, 2013, Hemisphere
reported pro forma revenue of $19.6 million, Adjusted EBITDA of $8.5 million,
and pro forma net loss of $0.5 million.

Hemisphere includes:

  *Cinelatino, the #1 U.S. Spanish-language cable movie network, with
    approximately 12 million subscribers across the U.S., Latin America and
    Canada;
  *WAPA America, the leading U.S. Spanish-language cable network targeting
    Puerto Ricans and other Caribbean Hispanics living in the U.S, with over 5
    million subscribers; and
  *WAPA TV, the #1 broadcast television network and content producer in
    Puerto Rico, with state-of-the-art facilities that produce over 60 hours
    per week of top-rated news and entertainment programming.

Alan Sokol, CEO of Hemisphere, stated, “Hemisphere’s pro forma first quarter
results demonstrate the quality of our assets and their unique positioning. As
the only publicly-traded pure-play U.S. media company targeting the fast
growing and highly attractive U.S. Hispanic and Latin American markets, we are
in the highest growth sector in television. And with Cinelatino, the #1 U.S.
Spanish-language movie channel, WAPA America, a leading U.S. Hispanic cable
network, and WAPA TV, the #1 broadcast network in Puerto Rico, Hemisphere has
the content and reach to continue to win audiences and market share.”

Sokol continued, “Our first quarter numbers continue our strong performance
and demonstrate our market-leading position. Now that our transition to a
public company is complete, we are very excited about the synergy
opportunities among our companies and driving shareholder value.”

The following table sets forth the unaudited pro forma results of operations
for Hemisphere assuming the Transaction occurred on January 1, 2013 (in
thousands):

                                                                    
                                              Three Months Ended March
                                              31, 2013
                           WAPA               Cinelatino    Pro Forma
                           (historical
                           predecessor)
Net Revenues               $    13,495        $   6,104        $ 19,599
                                                                             
Operating Expenses:
Cost of revenues                5,856             1,053          6,909
Selling, general and            3,429             754            4,183
administrative
Depreciation and                1,011             964            1,975
amortization
Other expenses                  3,292             2,068          5,360
Loss on disposition            25               -             25
of assets
Total operating                 13,612            4,839          18,451
expenses
                                                                             
Operating (loss)                (117)             1,265          1,148
income
                                                                             
Interest expense                (771)             (462)          (1,233)
                                                                             
Income tax benefit             363              (821)         (458)
(expense)
                                                                             
Net loss                   $    (525)         $   (18)         $ (543)
                                                                             
Reconciliation of
net loss to EBITDA:
Net loss                   $    (525)         $   (18)         $ (543)
Add (deduct):
Income tax (benefit)            (363)             821            458
expense
Interest expense                771               462            1,233
Loss on disposition             25                -              25
of assets
Depreciation and               1,011            964           1,975
amortization
EBITDA                     $    918           $   2,229        $ 3,147
Transaction related
and other                      3,292            2,068         5,360
non-recurring
expenses
Adjusted EBITDA            $    4,210         $   4,297        $ 8,507
                                                                             

Non-GAAP Reconciliations

Within Hemisphere’s first quarter 2013 press release, Hemisphere makes
reference to certain non-GAAP financial measures such as – “EBITDA” and
“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 these 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 10:00AM ET on Wednesday, May 15, 2013. A live broadcast
of the conference call will be available online via the company’s Investor
Relations website located at http://ir.hemispheretv.com/. Alternatively,
interested parties can access the conference call by dialing (866) 510-0707,
or from outside the United States at (617) 597-5376, at least five minutes
prior to the start time. The conference ID for the call is 38998556.

A replay of the call will be available beginning at approximately 12:00PM
Eastern Time May 15 by dialing (888) 286-8010, or from outside the United
States by dialing (617) 801-6888. The conference ID for the replay is
78370637.

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 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 registration statement on Form S-4
(File No. 333-186210) (the “Registration Statement”) and post-effective
amendment No. 1 on Form S-1 to the Registration Statement, filed with the
Securities and Exchange Commission (“SEC”), as they may be updated in any
future reports filed with the SEC. If one or more of these factors
materialize, or if any underlying assumptions prove incorrect, Hemisphere’s
actual results, performance, or achievements may vary materially from any
future results, performance or achievements expressed or implied by these
forward-looking statements. Forward-looking statements included herein are
made as of the date hereof, and Hemisphere undertakes no obligation to update
publicly such statements to reflect subsequent events or circumstances.

About Hemisphere Media Group, Inc.

Hemisphere Media Group (NASDAQ: HMTV) is the only publicly-traded pure-play
U.S. Spanish-language TV/cable network business serving the high-growth U.S.
Hispanic population. Headquartered in Miami, Florida, Hemisphere owns and
operates Cinelatino, WAPA Television and WAPA America. Cinelatino is the
leading Spanish-language movie channel with more than 12 million subscribers
in the U.S., Latin America and Canada, featuring the largest selection of
contemporary Spanish-language blockbusters and critically-acclaimed titles
from Mexico, Latin America, Spain and the Caribbean. WAPA Television is Puerto
Rico’s leading broadcast station with the highest primetime and full day
ratings in Puerto Rico. Founded in 1954, WAPA Television produces more than 60
hours per week of top-rated news and entertainment programming. WAPA America
is 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-TV. WAPA America has more than five
million U.S. subscribers.

Contact:

For Hemisphere Media Group, Inc.:
Robin Weinberg/Patrick Scanlan, 212-687-8080
 
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