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

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

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

Financial Highlights

(in thousands)           Quarter Ended            Nine-Months Ended   
                         September 30,             September 30,
                                           %                          %
                         2013      2012     Change 2013       2012     Change
                                                            
Net revenue:                                                      
Radio                   $35,428 31,192  14%    $100,634 89,258  13%
Television              5,654    4,689   21%    15,618    13,328  17%
Consolidated            $41,082 35,881  14%    $116,252 102,586 13%
                                                                 
OIBDA, a non-GAAP                                                 
measure*:
Radio                   $13,571 13,179  3%     $41,029  36,986  11%
Television              117      129     (9%)  68        (1,892) 104%
Corporate               (2,371)  (1,564) 52%    (7,413)   (5,552) 34%
Consolidated            $11,317 11,744  (4%)  $33,684  29,542  14%

* 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 reported robust top-line results during the third quarter, supported by
strong revenue gains across our operations," commented Raul Alarcón, Jr.,
Chairman and CEO. "Our radio revenue growth was well ahead of our industry,
as we effectively converted our leading audience shares into increased
advertising dollars. The investments we have made in our station brands,
content offering and sales force are leading to a considerable improvement in
our financial results. We are also continuing to demonstrate our ability to
leverage live events to promote our assets to our target audiences, while
driving increased sponsorship dollars. Looking ahead, we remain focused on
leveraging our diversified media platform to garner a greater share of
advertising budgets across our markets."

Quarter Results

For the quarter-ended September 30, 2013, consolidated net revenues totaled
$41.1 million compared to $35.9 million for the same prior year period,
resulting in an increase of $5.2 million or 14%.Our radio segment net
revenues increased $4.2 million or 14%, primarily due to special events
revenue, national sales, local sales and interactive sales. The special events
revenue increase took place in our Miami, Puerto Rico, New York and Los
Angeles markets.The increase in national sales was mainly in our Los Angeles,
San Francisco and New York markets.The increase in local sales was primarily
in our New York, Miami and Los Angeles markets.The increase in interactive
sales occurred throughout most of our markets. Our television segment net
revenues increased $1.0 million or 21%, largely due to the increase in special
events revenue, offset by the decreases in national and local spot sales.

OIBDA, a non-GAAP measure, totaled $11.3 million compared to $11.7 million for
the same prior year period, representing a decrease of $0.4 million or 4%. Our
radio segment OIBDA increased $0.4 million or 3%, primarily due to the
increase in net revenues of $4.2 million, offset by the increase of station
operating expenses of $3.8 million. Radio station operating expenses
increased mainly due to compensation and benefits, special events expenses,
legal settlements and professional fees, which were offset by a decrease in
local commissions. Our television segment OIBDA totaled $0.1 million for the
current and same prior year period, respectively.During the quarter, both of
television's net revenue and station operating expenses increased by $1.0
million compared to the same prior year period.The increase in television
station operating expenses was primarily due to special events expenses. Our
corporate expenses increased $0.8 million or 52%, mostly due to increases in
professional fees and travel and entertainment expenses. 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 $10.2 million for the current and same prior year
period, respectively.

Nine-Months Ended Results

For the nine-months ended September 30, 2013, consolidated net revenues
totaled $116.3 million compared to $102.6 million for the same prior year
period, resulting in an increase of $13.7 million or 13%.Our radio segment
net revenues increased $11.4 million or 13%, primarily due to special events
revenue, national, barter, local 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 and San Francisco markets. The increase in local sales was primarily
in our New York, Los Angeles, Miami and Puerto Rico markets.Our television
segment net revenues increased $2.3 million or 17%, 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 $33.7 million compared to $29.5 million for
the same prior year period, representing an increase of $4.1 million or
14%.Our radio segment OIBDA increased $4.0 million or 11%, primarily due to
the increase in net revenues of $11.4 million, offset by the increase of
station operating expenses of $7.3 million. Radio station operating expenses
increased mainly due to increases in special events expenses, barter expense,
legal settlements and professional fees, 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 $2.3 million,
which was partially offset by an increase in station operating expenses of
$0.3 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 $1.9 million or 34%,
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 $28.9 million compared to $24.8 million for the same
prior year period, representing an increase of $4.1 million or 16%.This
increase in operating income was primarily due to the increase in revenue.

Third Quarter 2013 Conference Call

We will host a conference call to discuss our third quarter 2013 financial
results on Friday, November 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 Friday, November 29, 2013 which can be accessed
by dialing 877-344-7529 (U.S.) or 412-317-0088 (Int'l), passcode: 10036476.

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 operates 20 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 nine-months ended September 30, 2013 and 2012.

                                     Three-Months Ended  Nine-Months Ended
                                      September 30,       September 30,
Amounts in thousands, except per      2013       2012     2013       2012
share amounts
                                                                 
                                     (Unaudited)         (Unaudited)
Net revenue                           $41,082  35,881  $116,252 102,586
Station operating expenses            27,394    22,573  75,155    67,492
Corporate expenses                    2,371     1,564   7,413     5,552
Depreciation and amortization         1,237     1,365   3,911     4,122
(Gain) loss on the disposal of        (3)       (3)     (25)      (8)
assets, net
Impairment charges and restructuring  (136)     148     889       572
costs
Operating income                      10,219    10,234  28,909    24,856
Interest expense, net                 (9,924)   (9,931) (29,794)  (26,613)
Loss on early extinguishment of debt  --       --     --       (391)
                                                                 
Income (loss) before income taxes     295       303     (885)     (2,148)
Income tax expense                    189       248     512       1,761
Net income (loss)                     106       55      (1,397)   (3,909)
                                                                 
Dividends on Series B preferred stock (2,482)   (2,482) (7,446)   (7,446)
Net loss applicable to common         $(2,376) (2,427) $(8,843) (11,355)
stockholders
                                                                 
Net loss per common share:                                        
Basic & Diluted                       $(0.33)  (0.33)  $(1.22)  (1.56)
                                                                 
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 September 30, 2013
(Unaudited and in thousands)  Consolidated    Radio       Television Corporate
                                                                 
OIBDA                         $11,317       13,571     117       (2,371)
Less expenses excluded from
OIBDA but included in                                             
operating income (loss):
Depreciation and amortization 1,237          470        692       75
(Gain) loss on the disposal   (3)            (3)        --       --
of assets, net
Impairment charges and        (136)          --        --       (136)
restructuring costs
Operating Income (Loss)       $10,219       13,104     (575)     (2,310)
                                                                 
                             Quarter Ended September 30, 2012
(Unaudited and in thousands)  Consolidated    Radio       Television Corporate
                                                                 
OIBDA                         $11,744       13,179     129       (1,564)
Less expenses excluded from
OIBDA but included in                                             
operating income (loss):
Depreciation and amortization 1,365          495        776       94
(Gain) loss on the disposal   (3)            (3)        --       --
of assets, net
Impairment charges and        148            (23)       --       171
restructuring costs
Operating Income (Loss)       $10,234       12,710     (647)     (1,829)
                                                                 
                             Quarter Ended September 30,           
(Unaudited and in thousands)  2013            2012                  
Operating Income              $10,219       10,234               
Other (expense) income:                                           
Interest expense, net         (9,924)        (9,931)              
Income before income taxes    295            303                  
Income tax expense            189            248                  
Net income                    $106          55                   

                         
                         Nine-Months Ended September 30, 2013
(Unaudited and in         Consolidated      Radio         Television Corporate
thousands)
                                                                 
OIBDA                     $33,684         41,029       68        (7,413)
Less expenses excluded
from OIBDA but included                                           
in operating income
(loss):
Depreciation and          3,911            1,462        2,227     222
amortization
(Gain) loss on the        (25)             (12)         --       (13)
disposal of assets, net
Impairment charges and    889              86           1,000     (197)
restructuring costs
Operating Income (Loss)   $28,909         39,493       (3,159)   (7,425)
                                                                 
                         Nine-Months Ended September 30, 2012
(Unaudited and in         Consolidated      Radio         Television Corporate
thousands)
                                                                 
OIBDA                     $29,542         36,986       (1,892)   (5,552)
Less expenses excluded
from OIBDA but included                                           
in operating income
(loss):
Depreciation and          4,122            1,572        2,222     328
amortization
(Gain) loss on the        (8)              (8)          --       --
disposal of assets, net
Impairment charges and    572              48           11        513
restructuring costs
Operating Income (Loss)   $24,856         35,374       (4,125)   (6,393)
                                                                 
                         Nine-Months Ended September 30,           
(Unaudited and in         2013              2012                    
thousands)
Operating Income          $28,909         24,856                 
Other (expense) income:                                           
Interest expense, net     (29,794)         (26,613)               
Loss on early             --              (391)                  
extinguishment of debt
Loss before income taxes  (885)            (2,148)                
Income tax expense        512              1,761                  
Net loss                  $(1,397)        (3,909)                

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      Nine-Months Ended
                                          September 30,      September 30,
                                         2013      2012     2013     2012
                                         (In thousands)     (In thousands)
Net revenue:                                                       
Radio                                    $35,428 31,192  100,634 89,258
Television                               5,654    4,689   15,618  13,328
Consolidated                             $41,082 35,881  116,252 102,586
                                                                  
Engineering and programming expenses:                              
Radio                                    $6,086  5,470   15,795  15,199
Television                               2,355    2,714   6,393   9,004
Consolidated                             $8,441  8,184   22,188  24,203
                                                                  
Selling, general and administrative                                
expenses:
Radio                                    $15,771 12,543  43,810  37,073
Television                               3,182    1,846   9,157   6,216
Consolidated                             $18,953 14,389  52,967  43,289
                                                                  
Corporate expenses:                       $2,371  1,564   7,413   5,552
                                                                  
Depreciation and amortization:                                     
Radio                                    $470    495     1,462   1,572
Television                               692      776     2,227   2,222
Corporate                                75       94      222     328
Consolidated                             $1,237  1,365   3,911   4,122
                                                                  
(Gain) loss on the disposal of assets,                             
net:
Radio                                    $(3)    (3)     (12)    (8)
Television                               --      --     --     --
Corporate                                --      --     (13)    --
Consolidated                             $(3)    (3)     (25)    (8)
                                                                  
Impairment charges and restructuring                               
costs:
Radio                                    $--    (23)    86      48
Television                               --      --     1,000   11
Corporate                                (136)    171     (197)   513
Consolidated                             $(136)  148     889     572
                                                                  
Operating income (loss):                                           
Radio                                    $13,104 12,710  39,493  35,374
Television                               (575)    (647)   (3,159) (4,125)
Corporate                                (2,310)  (1,829) (7,425) (6,393)
Consolidated                             $10,219 10,234  28,909  24,856

Selected Unaudited Balance Sheet Information and Other Data:

(Amounts in thousands)                             As of              
                                                   September 30, 2013
                                                                    
Cash and cash equivalents                          $33,737          
                                                                    
Total assets                                       $473,790         
                                                                    
12.5% Senior Secured Notes due 2017, net           $268,788         
Other debt                                         8,348             
Total debt                                         $277,136         
                                                                    
Series B preferred stock                           $92,349          
Accrued Series B preferred stock dividends payable 34,332            
Total                                             $126,681         
                                                                    
Total stockholders' deficit                        $(54,500)        
                                                                    
Total capitalization                               $349,317         
                                                                    

                          For the Fiscal Year Ended September 30,
                          2013                2012
                                               
Capital expenditures       $1,469              1,408
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
 
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