Welcome!

News Feed Item

Hemisphere Media Announces First Quarter 2014 Financial Results

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 first quarter ended March 31, 2014.

Alan Sokol, CEO of Hemisphere, stated, “We achieved solid revenue and EBITDA growth during the first quarter, with increases in all of our key revenue streams. This is a result of the continued strong performance of all of our networks, highlighted by double digit ratings growth at WAPA PR, and the attractiveness of the Hispanic market to advertisers and pay-TV distributors. We also grew our portfolio with the addition of three market-leading and highly complementary networks acquired on April 1, 2014 (the “Cable Networks Acquisition”). We are moving aggressively to grow these networks by expanding their subscriber base and advertising revenue to drive real value creation.”

On April 4, 2013, Hemisphere completed a series of mergers pursuant to which InterMedia Español Holdings, LLC, (“WAPA”), and Cine Latino, Inc. (“Cinelatino”) became indirect, wholly owned subsidiaries of Hemisphere (the “Transaction”). WAPA was the accounting acquirer and predecessor, whose historical results became the historical results of Hemisphere.

Net revenues for the three months ended March 31, 2014 were $21.0 million, an increase of 55%, compared to net revenues of $13.5 million for the same period in 2013. This increase is primarily a result of the inclusion in the current quarter of the net revenues of Cinelatino which was not included in the prior year’s quarter, as well as growth in net revenues at WAPA. Pro forma for the Transaction occurring on January 1, 2013, net revenues increased by $1.4 million, or 7%, due to growth in retransmission and subscriber fees and advertising revenue.

Operating expenses were $17.3 million for the three months ended March 31, 2014, an increase of 27% from operating expenses of $13.6 million for the same period in 2013. This increase was primarily due to the inclusion in the current quarter of Cinelatino’s operating expenses, corporate overhead, amortization of intangibles created in connection with the Transaction and stock-based compensation in the operating results, all of which were not included in the prior year’s quarter, offset in part by lower transaction costs incurred in the current quarter in connection with the Cable Networks Acquisition as compared to transaction costs incurred in connection with the Transaction in the prior year’s quarter. Additionally, expenses at WAPA increased in large part due to a full quarter of production costs for two daily series on both WAPA PR and WAPA America that were launched during the first and second quarters of 2013, and which were not fully reflected in the prior year’s first quarter. The increase in production costs in the current quarter was anticipated.

Net income was $0.2 million for the three months ended March 31, 2014, an increase of $0.8 million compared to a net loss of $0.5 million for the same period in 2013.

Adjusted EBITDA increased $3.8 million, or 90%, to $8.0 million for the three months ended March 31, 2014. This increase in the quarter was due to the inclusion of Cinelatino’s operating results in the current quarter, offset in part by the incurrence of corporate overhead. Pro forma for the inclusion of the operating results of Cinelatino and corporate overhead in the three month period ended March 31, 2013, Adjusted EBITDA increased 7%.

The following tables set forth the Company’s financial performance for the three months ended March 31, 2014 and 2013 (in thousands):

 
Three Months Ended March 31,
2014   2013
Net revenues $20,951 $13,495
Operating Expenses:
Cost of revenues 7,598 5,856
Selling, general and administrative 6,881 3,429
Depreciation and amortization 2,578 1,010
Other expenses 249 3,292
(Gain) loss on disposition of assets (2) 25
Total operating expenses 17,304 13,612
Operating income (loss) 3,647 (117)
 
Other Expenses:
Interest expense, net (2,907) (759)
Other expense, net - (12)
(2,907) (771)
Income (loss) before income taxes 740 (888)
 
Income tax (expense) benefit (492) 363
Net income (loss) $248 $(525)
 
 
Reconciliation of net income (loss) to Adjusted EBITDA:
Net income (loss) $248 $(525)
Income tax expense (benefit) 492 (363)
Other expenses, net 2,907 771
(Gain) loss on disposition of assets (2) 25
Depreciation and amortization 2,578 1,010
Stock-based compensation 1,514 -
EBITDA 7,737 918
Transaction and other non-recurring
expenses
249 3,292
Adjusted EBITDA $7,986 $4,210
 

The below reconciliation gives pro forma effect to include Cinelatino in the first quarter of 2013 (in thousands):

Three Months Ended March 31,
2014   2013

Reconciliation of pro forma net income (loss)
to pro forma Adjusted EBITDA:

Pro forma net income (loss) (1)

$248 $ (1,702)
Income tax expense 492 458
Other expenses, net 2,907 1,775
(Gain) loss on disposition of assets (2) 25
Depreciation and amortization 2,578 2,592
Stock-based compensation 1,514 -
EBITDA 7,737 3,148
Transaction and other non-recurring expenses 249 5,360

Corporate overhead (2)

 

- (1,046)
Pro forma adjusted EBITDA $7,986 $7,462
 

1 - Pro forma net income (loss) for 2013 reflects incremental amortization expense and write-off of deferred loan costs in connection with the final accounting for the Transaction. This adjustment did not impact pro forma adjusted EBITDA.

2 - Corporate overhead for the three months ended March 31, 2014 is included in SG&A and thus reflected in net income for the 2014 period.

Non-GAAP Reconciliations

Within Hemisphere’s first quarter 2014 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 third quarter financial results at 10:00AM ET on Wednesday, May 7, 2014. 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) 700-5192, or from outside the United States at (617) 213-8833, at least five minutes prior to the start time. The conference ID for the call is 20211629.

A replay of the call will be available beginning at approximately 2:00PM Eastern Time May 7 by dialing (888) 286-8010, or from outside the United States by dialing (617) 801-6888. The conference ID for the replay is 79186200. The replay will be archived for 30 days on the investor relations section of www.hemispheretv.com.

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 Annual Report on Form 10-K, 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. As of April 1, 2014, Hemisphere owns and operates five leading U.S. Hispanic cable networks, two Latin American cable networks, and the leading broadcast television network in Puerto Rico. Hemisphere’s networks consist of:

  • Cinelatino, the leading Spanish-language movie channel distributed 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 PR, Puerto Rico’s leading broadcast station with the highest primetime and full day ratings in Puerto Rico. Founded in 1954, WAPA PR produces more than 65 hours per week of top-rated news and entertainment programming.
  • WAPA America, 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 PR.
  • Pasiones, dedicated to showcasing the most popular telenovelas and drama series, distributed in the U.S. and Latin America.
  • Centroamerica TV, the leading network targeting Central Americans living in the U.S., the third largest U.S. Hispanic group, featuring the most popular news, entertainment and soccer programming from Central America.
  • TV Dominicana, the leading network targeting Dominicans living in the U.S., featuring the most popular news, entertainment and baseball programming from the Dominican Republic.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that DivvyCloud will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. DivvyCloud software enables organizations to achieve their cloud computing goals by simplifying and automating security, compliance and cost optimization of public and private cloud infrastructure. Using DivvyCloud, customers can leverage programmatic Bots to identify and remediate common cloud problems in rea...
Most DevOps journeys involve several phases of maturity. Research shows that the inflection point where organizations begin to see maximum value is when they implement tight integration deploying their code to their infrastructure. Success at this level is the last barrier to at-will deployment. Storage, for instance, is more capable than where we read and write data. In his session at @DevOpsSummit at 20th Cloud Expo, Josh Atwell, a Developer Advocate for NetApp, will discuss the role and value...
In his opening keynote at 20th Cloud Expo, Michael Maximilien, Research Scientist, Architect, and Engineer at IBM, will motivate why realizing the full potential of the cloud and social data requires artificial intelligence. By mixing Cloud Foundry and the rich set of Watson services, IBM's Bluemix is the best cloud operating system for enterprises today, providing rapid development and deployment of applications that can take advantage of the rich catalog of Watson services to help drive insigh...
SYS-CON Events announced today that Tintri, Inc, a leading provider of enterprise cloud infrastructure, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Tintri offers an enterprise cloud platform built with public cloud-like web services and RESTful APIs. Organizations use Tintri all-flash storage with scale-out and automation as a foundation for their own clouds – to build agile development environments...
Cloud promises the agility required by today’s digital businesses. As organizations adopt cloud based infrastructures and services, their IT resources become increasingly dynamic and hybrid in nature. Managing these require modern IT operations and tools. In his session at 20th Cloud Expo, Raj Sundaram, Senior Principal Product Manager at CA Technologies, will discuss how to modernize your IT operations in order to proactively manage your hybrid cloud and IT environments. He will be sharing bes...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
Every successful software product evolves from an idea to an enterprise system. Notably, the same way is passed by the product owner's company. In his session at 20th Cloud Expo, Oleg Lola, CEO of MobiDev, will provide a generalized overview of the evolution of a software product, the product owner, the needs that arise at various stages of this process, and the value brought by a software development partner to the product owner as a response to these needs.
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
SYS-CON Events announced today that Technologic Systems Inc., an embedded systems solutions company, will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Technologic Systems is an embedded systems company with headquarters in Fountain Hills, Arizona. They have been in business for 32 years, helping more than 8,000 OEM customers and building over a hundred COTS products that have never been discontinued. Technologic Systems’ pr...
While some vendors scramble to create and sell you a fancy solution for monitoring your spanking new Amazon Lambdas, hear how you can do it on the cheap using just built-in Java APIs yourself. By exploiting a little-known fact that Lambdas aren’t exactly single threaded, you can effectively identify hot spots in your serverless code. In his session at 20th Cloud Expo, David Martin, Principal Product Owner at CA Technologies, will give a live demonstration and code walkthrough, showing how to ov...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that Tappest will exhibit MooseFS at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. MooseFS is a breakthrough concept in the storage industry. It allows you to secure stored data with either duplication or erasure coding using any server. The newest – 4.0 version of the software enables users to maintain the redundancy level with even 50% less hard drive space required. The software func...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists will examine how DevOps helps to meet th...
SYS-CON Events announced today that EARP will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "We are a software house, so we perfectly understand challenges that other software houses face in their projects. We can augment a team, that will work with the same standards and processes as our partners' internal teams. Our teams will deliver the same quality within the required time and budget just as our partn...