Spanish Broadcasting System, Inc. Reports Results for the Second Quarter 2013

Spanish Broadcasting System, Inc. Reports Results for the Second Quarter 2013

MIAMI, Aug. 14, 2013 (GLOBE NEWSWIRE) -- Spanish Broadcasting System, Inc.
(the "Company" or "SBS") (Nasdaq:SBSA) today reported financial results for
the three- and six-months ended June 30, 2013.

Financial Highlights

(in thousands)             Quarter Ended             Six-Months Ended
                           June 30,           %      June 30,           %
                          2013      2012     Change 2013      2012     Change
                                                   
Net revenue:                                                       
Radio                     $32,247 30,288  6%     $65,206 58,066  12%
Television                3,820    4,323   (12%) 9,964    8,639   15%
Consolidated              $36,067 34,611  4%     $75,170 66,705  13%
                                                                  
OIBDA, a non-GAAP                                                  
measure*:
Radio                     $15,189 14,294  6%     $27,458 23,807  15%
Television                130      (1,192) 111%   (49)     (2,021) 98%
Corporate                 (2,612)  (1,636) 60%    (5,042)  (3,988) 26%
Consolidated              $12,707 11,466  11%    $22,367 17,798  26%

* Please refer to the Non-GAAP Financial Measures section for a definition and
a reconciliation from a non-GAAP to GAAP financial measure.

Discussion and Results

"We generated healthy gains in our operating profitability during the second
quarter, leading to a 26 percent increase in our OIBDA for the first half of
the year," commented Raul Alarcón, Jr., Chairman and CEO."We are encouraged
with the overall advertising environment across our markets, and we are
confident in our ability to continue to convert our audience shares into
financial gains. We are benefiting from the strategic investments we have made
in our content, distribution and sales resources.At the same time, we have
maintained a disciplined approach to managing our expenses, as reflected in
our improving profitability.As advertisers increasingly recognize
Spanish-language media as a highly effective channel to promote their brands,
we remain focused on leveraging our diversified media platform to garner a
greater share of advertising budgets."

Quarter Results

For the quarter-ended June 30, 2013, consolidated net revenues totaled $36.1
million compared to $34.6 million for the same prior year period, resulting in
an increase of $1.5 million or 4%.Our radio segment net revenues increased
$2.0 million or 6%, primarily due to national sales, barter sales, interactive
sales and special events revenue.The increase in national sales was mainly in
our New York, Los Angeles and San Francisco markets.The increases in barter
and interactive sales occurred throughout most of our markets. The special
events revenue increase took place in our San Francisco, Miami and Los Angeles
markets.Our television segment net revenues decreased $0.5 million or 12%,
due to the decreases in national and local spot sales and integrated sales.


OIBDA, a non-GAAP measure, totaled $12.7 million compared to $11.5 million for
the same prior year period, representing an increase of $1.2 million or 11%.
Our radio segment OIBDA increased $0.9 million or 6%, primarily due to the
increase in net revenues of $2.0 million, offset by the increase of station
operating expenses of $1.1 million. Radio station operating expenses
increased mainly due to compensation and benefits, and barter expense, which
were offset by a decrease in local commissions. Our television segment OIBDA
increased $1.3 million, largely due to the decrease in station operating
expenses of $1.8 million, offset by the decrease in net revenues of $0.5
million.Television station operating expenses decreased primarily due to the
decrease in originally produced programming costs, facilities expenses, barter
expense and the elimination of broadcasting rights fees related to our former
Chicago and Puerto Rico outlets. Our corporate expenses increased $1.0 million
or 60%, mostly due to increases in professional fees and compensation and
benefits. Please refer to the Non-GAAP Financial Measures section for a
definition of OIBDA and a reconciliation from a non-GAAP to GAAP financial
measure.

Operating income totaled $11.4 million compared to $9.8 million for the same
prior year period, representing an increase of $1.6 million or 16%. This
increase in operating income was primarily due to the increase in revenue.

Six-Months Ended Results

For the six-months ended June 30, 2013, consolidated net revenues totaled
$75.2 million compared to $66.7 million for the same prior year period,
resulting in an increase of $8.5 million or 13%.Our radio segment net
revenues increased $7.1 million or 12%, primarily due to special events
revenue, national, barter and interactive sales. The increases in special
events revenue, barter and interactive sales occurred throughout most of our
markets. The increase in national sales took place in our Los Angeles, New
York, San Francisco and Puerto Rico markets. Our television segment net
revenues increased $1.3 million or 15%, largely due to the increase in special
events revenue, offset by the decreases in national and local spot sales and
integrated sales.

OIBDA, a non-GAAP measure, totaled $22.4 million compared to $17.8 million for
the same prior year period, representing an increase of $4.6 million or
26%.Our radio segment OIBDA increased $3.6 million or 15%, primarily due to
the increase in net revenues of $7.1 million, offset by the increase of
station operating expenses of $3.5 million. Radio station operating expenses
increased mainly due to increases in special events expenses and barter
expense, which were offset by decreases in local commissions and music license
fees.Our television segment OIBDA (loss) decreased $2.0 million, due to the
increase in net revenues of $1.3 million and the decrease in station operating
expenses of $0.7 million.Television station operating expenses increased
primarily due to the increase in special events expenses, offset by decreases
in compensation and benefits, originally produced programming costs,
facilities expenses and the elimination of broadcasting rights fees related to
our former Chicago and Puerto Rico outlets. Our corporate expenses increased
by $1.1 million or 26%, mostly due to an increase in professional fees.Please
refer to the Non-GAAP Financial Measures section for a definition of OIBDA and
a reconciliation from a non-GAAP to GAAP financial measure.

Operating income totaled $18.7 million compared to $14.6 million for the same
prior year period, representing an increase of $4.1 million or 28%.This
increase in operating income was primarily due to the increase in revenue.

Second Quarter 2013 Conference Call

We will host a conference call to discuss our second quarter 2013 financial
results on Thursday, August 15, 2013 at 11:00 a.m. Eastern Time.To access the
teleconference, please dial 412-317-6789 ten minutes prior to the start time.

If you cannot listen to the teleconference at its scheduled time, there will
be a replay available through Thursday, August 29, 2013 which can be accessed
by dialing 877-344-7529 (U.S.) or 412-317-0088 (Int'l), passcode: 10032476.

There will also be a live webcast of the teleconference, located on the
investor portion of our corporate Web site, at
www.spanishbroadcasting.com/webcasts.shtml . A seven day archived replay of
the webcast will also be available at that link.

About Spanish Broadcasting System, Inc.

Spanish Broadcasting System, Inc. is the largest publicly traded
Hispanic-controlled media and entertainment company in the United States. SBS
owns and/or operates 21 radio stations located in the top U.S. Hispanic
markets of New York, Los Angeles, Miami, Chicago, San Francisco and Puerto
Rico, airing the Tropical, Mexican Regional, Spanish Adult Contemporary and
Hurban format genres. The Company also owns and operates MegaTV, a television
operation with over-the-air, cable and satellite distribution and affiliates
throughout the U.S. and Puerto Rico. SBS also produces live concerts and
events and owns 21 bilingual websites, including www.LaMusica.com, a bilingual
Spanish-English online site providing content related to Latin music,
entertainment, news and culture. The Company's corporate Web site can be
accessed at www.spanishbroadcasting.com.

This press release contains certain forward-looking statements.These
forward-looking statements, which are included in accordance with the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995, may
involve known and unknown risks, uncertainties and other factors that may
cause the Company's actual results and performance in future periods to be
materially different from any future results or performance suggested by the
forward-looking statements in this press release.Although the Company
believes the expectations reflected in such forward-looking statements are
based upon reasonable assumptions, it can give no assurance that actual
results will not differ materially from these expectations.Forward-looking
statements, which are based upon certain assumptions and describe future
plans, strategies and expectations of the Company, are generally identifiable
by use of the words "may," "will," "expect," "believe," "anticipate,"
"intend," "could," "estimate," "might," or "continue" or the negative or other
variations thereof or comparable terminology.Factors that could cause actual
results, events and developments to differ are included from time to time in
the Company's public reports filed with the Securities and Exchange
Commission.All forward-looking statements made herein are qualified by these
cautionary statements and there can be no assurance that the actual results,
events or developments referenced herein will occur or be realized. The
Company undertakes no obligation to update or revise forward-looking
statements to reflect changed assumptions, the occurrence of unanticipated
events or changes to future operating results.

                          (Financial Table Follows)

Below are the Unaudited Condensed Consolidated Statements of Operations for
the three- and six-months ended June 30, 2013 and 2012.

                                     Three-Months Ended  Six-Months Ended
                                      June 30,            June 30,
Amounts in thousands, except per      2013       2012     2013       2012
share amounts
                                                                 
                                     (Unaudited)         (Unaudited)
Net revenue                           $36,067  34,611  $75,170  66,705
Station operating expenses            20,748    21,509  47,761    44,919
Corporate expenses                    2,612     1,636   5,042     3,988
Depreciation and amortization         1,316     1,304   2,674     2,757
(Gain) loss on the disposal of        (9)       (5)     (22)      (5)
assets, net
Impairment charges and restructuring  25        368     1,025     424
costs
Operating income                      11,375    9,799   18,690    14,622
Interest expense, net                 (9,939)   (9,844) (19,870)  (16,682)
Loss on early extinguishment of debt  --       --     --       (391)
                                                                 
Income (loss) before income taxes     1,436     (45)    (1,180)   (2,451)
Income tax expense                    186       256     323       1,513
Net income (loss)                     1,250     (301)   (1,503)   (3,964)
                                                                 
Dividends on Series B preferred stock (2,482)   (2,482) (4,964)   (4,964)
Net loss applicable to common         $(1,232) (2,783) $(6,467) (8,928)
stockholders
                                                                 
Net loss per common share:                                        
Basic & Diluted                      $(0.17)  (0.38)  $(0.89)  (1.23)
                                                                 
Weighted average common shares                                    
outstanding:
Basic & Diluted                       7,267     7,267   7,267     7,267

Non-GAAP Financial Measures

Operating Income (Loss) before Depreciation and Amortization, (Gain) Loss on
the Disposal of Assets, net, and Impairment Charges and Restructuring Costs
("OIBDA") is not a measure of performance or liquidity determined in
accordance with Generally Accepted Accounting Principles ("GAAP") in the
United States.However, we believe that this measure is useful in evaluating
our performance because it reflects a measure of performance for our stations
before considering costs and expenses related to our capital structure and
dispositions.This measure is widely used in the broadcast industry to
evaluate a company's operating performance and is used by us for internal
budgeting purposes and to evaluate the performance of our stations, segments,
management and consolidated operations.However, this measure should not be
considered in isolation or as a substitute for Operating Income, Net Income,
Cash Flows from Operating Activities or any other measure used in determining
our operating performance or liquidity that is calculated in accordance with
GAAP. In addition, because OIBDA is not calculated in accordance with GAAP, it
is not necessarily comparable to similarly titled measures used by other
companies.

Included below are tables that reconcile OIBDA to operating income (loss) for
each segment and consolidated net income (loss), which is the most directly
comparable GAAP financial measure. 

                                  Quarter Ended June 30, 2013
(Unaudited and in thousands)       Consolidated  Radio    Television Corporate
                                                                 
OIBDA                              $12,707     15,189  130       (2,612)
Less expenses excluded from OIBDA
but included in operating income                                  
(loss):
Depreciation and amortization      1,316        481     761       74
(Gain) loss on the disposal of     (9)          (9)     --       --
assets, net
Impairment charges and             25           86      --       (61)
restructuring costs
Operating Income (Loss)            $11,375     14,631  (631)     (2,625)
                                                                 
                                  Quarter Ended June 30, 2012
(Unaudited and in thousands)       Consolidated  Radio    Television Corporate
                                                                 
OIBDA                              $11,466     14,294  (1,192)   (1,636)
Less expenses excluded from OIBDA
but included in operating income                                  
(loss):
Depreciation and amortization      1,304        526     666       112
(Gain) loss on the disposal of     (5)          (5)     --       --
assets, net
Impairment charges and             368          71      11        286
restructuring costs
Operating Income (Loss)            $9,799      13,702  (1,869)   (2,034)
                                                                 
                                  Quarter Ended June 30,           
(Unaudited and in thousands)       2013          2012               
Operating Income                   $11,375     9,799             
Other (expense) income:                                           
Interest expense, net              (9,939)      (9,844)           
Income (loss) before income taxes  1,436        (45)              
Income tax expense                 186          256               
Net income (loss)                  $1,250      (301)             

                               
                               Six-Months Ended June 30, 2013
(Unaudited and in thousands)    Consolidated   Radio      Television Corporate
                                                                 
OIBDA                           $22,367      27,458    (49)      (5,042)
Less expenses excluded from
OIBDA but included in operating                                   
income (loss):
Depreciation and amortization   2,674         992       1,535     147
(Gain) loss on the disposal of  (22)          (9)       --       (13)
assets, net
Impairment charges and          1,025         86        1,000     (61)
restructuring costs
Operating Income (Loss)         $18,690      26,389    (2,584)   (5,115)
                                                                 
                               Six-Months Ended June 30, 2012
(Unaudited and in thousands)    Consolidated   Radio      Television Corporate
                                                                 
OIBDA                           $17,798      23,807    (2,021)   (3,988)
Less expenses excluded from
OIBDA but included in operating                                   
income (loss):
Depreciation and amortization   2,757         1,077     1,446     234
(Gain) loss on the disposal of  (5)           (5)       --       --
assets, net
Impairment charges and          424           71        11        342
restructuring costs
Operating Income (Loss)         $14,622      22,664    (3,478)   (4,564)
                                                                 
                               Six-Months Ended June 30,           
(Unaudited and in thousands)    2013           2012                 
Operating Income                $18,690      14,622              
Other (expense) income:                                           
Interest expense, net           (19,870)      (16,682)            
Loss on early extinguishment of --           (391)               
debt
Loss before income taxes        (1,180)       (2,451)             
Income tax expense              323           1,513               
Net loss                        $(1,503)     (3,964)             

Non-GAAP Reporting Requirement under our Senior Secured Notes Indenture

Under our Senior Secured Notes Indenture, we are to provide our Senior Secured
Noteholders a statement of our "Station Operating Income for the Television
Segment," as defined by the Indenture, for the twelve-month period ended June
30, 2013 and 2012, and a reconciliation of "Station Operating Income for the
Television Segment" to the most directly comparable financial measure
calculated in accordance with GAAP. In addition, we are to provide our
"Secured Leverage Ratio," as defined by the Indenture, as of June 30, 2013.

Included below is the table that reconciles "Station Operating Income for the
Television Segment" to the most directly comparable GAAP financial measure.
Also included is our "Secured Leverage Ratio" as of June 30, 2013.

                         Twelve-Months Quarters Ended
                          Ended
(Unaudited and in         June 30,      June 30, March 31, Dec. 31, Sept. 30,
thousands)                2013          2013     2013      2012     2012
                                                               
Station Operating Income
for the Television        $392        251     (140)    370     $(89)
Segment, as defined by
the Indenture
Less expenses excluded
from Station Operating
Income for the Television
Segment, as defined by                                          
the Indenture, but
included in operating
income (loss):
Depreciation and          3,088        761     774      777     776
amortization
Non-cash barter (income)  (183)        5       2        28      (218)
expense
Other                    1,160        116     1,037    7       --
GAAP Operating Loss for   $(3,673)    (631)   (1,953)  (442)   $(647)
the Television Segment
                                                               
                         Twelve-Months Quarters Ended
                          Ended
                         June 30,      June 30, March 31, Dec. 31, Sept. 30,
                          2012          2012     2012      2011     2011
                                                               
Station Operating Income
for the Television        $(4,330)    (1,028) (835)    (1,319) $(1,148)
Segment, as defined by
the Indenture
Less expenses excluded
from Station Operating
Income for the Television
Segment, as defined by                                          
the Indenture, but
included in operating
income (loss):
Depreciation and          2,925        666     780      740     739
amortization
Non-cash barter (income)  (61)         164     (6)      (110)   (109)
expense
Other                    17           11      --      6       --
GAAP Operating Loss for   $(7,211)    (1,869) (1,609)  (1,955) $(1,778)
the Television Segment
                                                               
As of June 30, 2013                                             
Secured Leverage Ratio,
as defined by the         5.7                                    
Indenture

Unaudited Segment Data

We have two reportable segments: radio and television.The following summary
table presents separate financial data for each of our operating segments:

                                         Quarter Ended      Six-Months Ended
                                          June 30,           June 30,
                                         2013      2012     2013     2012
                                         (In thousands)     (In thousands)
Net revenue:                                                       
Radio                                    $32,247 30,288  65,206  58,066
Television                               3,820    4,323   9,964   8,639
Consolidated                             $36,067 34,611  75,170  66,705
Engineering and programming expenses:                              
Radio                                    $4,605  4,422   9,709   9,729
Television                               1,639    3,193   4,038   6,290
Consolidated                             $6,244  7,615   13,747  16,019
Selling, general and administrative                                
expenses:
Radio                                    $12,453 11,572  28,039  24,530
Television                               2,051    2,322   5,975   4,370
Consolidated                             $14,504 13,894  34,014  28,900
                                                                  
Corporate expenses:                       $2,612  1,636   5,042   3,988
                                                                  
Depreciation and amortization:                                     
Radio                                    $481    526     992     1,077
Television                               761      666     1,535   1,446
Corporate                                74       112     147     234
Consolidated                             $1,316  1,304   2,674   2,757
(Gain) loss on the disposal of assets,                             
net:
Radio                                    $(9)    (5)     (9)     (5)
Television                               --      --     --     --
Corporate                                --      --     (13)    --
Consolidated                             $(9)    (5)     (22)    (5)
Impairment charges and restructuring                               
costs:
Radio                                    $86     71      86      71
Television                               --      11      1,000   11
Corporate                                (61)     286     (61)    342
Consolidated                             $25     368     1,025   424
Operating income (loss):                                           
Radio                                    $14,631 13,702  26,389  22,664
Television                               (631)    (1,869) (2,584) (3,478)
Corporate                                (2,625)  (2,034) (5,115) (4,564)
Consolidated                             $11,375 9,799   18,690  14,622

Selected Unaudited Balance Sheet Information and Other Data:

(Amounts in thousands)                             As of
                                                   June 30, 2013
                                                  
Cash and cash equivalents                          $24,166
                                                  
Total assets                                       $464,659
                                                  
12.5% Senior Secured Notes due 2017, net           $268,450
Other debt                                         11,100
Total debt                                         $279,550
                                                  
Series B preferred stock                           $92,349
Accrued Series B preferred stock dividends payable 31,851
Total                                             $124,200
                                                  
Total stockholders' deficit                        $(52,158)
                                                  
Total capitalization                               $351,592

                          
                          For the Fiscal Year Ended June 30,
                          2013             2012
                                            
Capital expenditures       $992             734
Cash paid for income taxes $--             23

CONTACT: Analysts and Investors
         Jose I. Molina
         Vice President of Finance
         (305) 441-6901
        
         Analysts, Investors or Media
         Brad Edwards
         Brainerd Communicators, Inc.
         (212) 986-6667