Click here to close now.


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
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 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

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
Recently announced Azure Data Lake addresses the big data 3V challenges; volume, velocity and variety. It is one more storage feature in addition to blobs and SQL Azure database. Azure Data Lake (should have been Azure Data Ocean IMHO) is really omnipotent. Just look at the key capabilities of Azure Data Lake:
SYS-CON Events announced today that G2G3 will exhibit at SYS-CON's @DevOpsSummit Silicon Valley, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Based on a collective appreciation for user experience, design, and technology, G2G3 is uniquely qualified and motivated to redefine how organizations and people engage in an increasingly digital world.
In his session at @ThingsExpo, Tony Shan, Chief Architect at CTS, will explore the synergy of Big Data and IoT. First he will take a closer look at the Internet of Things and Big Data individually, in terms of what, which, why, where, when, who, how and how much. Then he will explore the relationship between IoT and Big Data. Specifically, he will drill down to how the 4Vs aspects intersect with IoT: Volume, Variety, Velocity and Value. In turn, Tony will analyze how the key components of IoT ...
When it comes to IoT in the enterprise, namely the commercial building and hospitality markets, a benefit not getting the attention it deserves is energy efficiency, and IoT’s direct impact on a cleaner, greener environment when installed in smart buildings. Until now clean technology was offered piecemeal and led with point solutions that require significant systems integration to orchestrate and deploy. There didn't exist a 'top down' approach that can manage and monitor the way a Smart Buildi...
SYS-CON Events announced today that Cloud Raxak has been named “Media & Session Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Raxak Protect automates security compliance across private and public clouds. Using the SaaS tool or managed service, developers can deploy cloud apps quickly, cost-effectively, and without error.
As-a-service models offer huge opportunities, but also complicate security. It may seem that the easiest way to migrate to a new architectural model is to let others, experts in their field, do the work. This has given rise to many as-a-service models throughout the industry and across the entire technology stack, from software to infrastructure. While this has unlocked huge opportunities to accelerate the deployment of new capabilities or increase economic efficiencies within an organization, i...
“All our customers are looking at the cloud ecosystem as an important part of their overall product strategy. Some see it evolve as a multi-cloud / hybrid cloud strategy, while others are embracing all forms of cloud offerings like PaaS, IaaS and SaaS in their solutions,” noted Suhas Joshi, Vice President – Technology, at Harbinger Group, in this exclusive Q&A with Cloud Expo Conference Chair Roger Strukhoff.
Scott Guthrie's keynote presentation "Journey to the intelligent cloud" is a must view video. This is from AzureCon 2015, September 29, 2015 I have reproduced some screen shots in case you are unable to view this long video for one reason or another. One of the highlights is 3 datacenters coming on line in India.
SYS-CON Events announced today that ProfitBricks, the provider of painless cloud infrastructure, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. ProfitBricks is the IaaS provider that offers a painless cloud experience for all IT users, with no learning curve. ProfitBricks boasts flexible cloud servers and networking, an integrated Data Center Designer tool for visual control over the...
“The Internet of Things transforms the way organizations leverage machine data and gain insights from it,” noted Splunk’s CTO Snehal Antani, as Splunk announced accelerated momentum in Industrial Data and the IoT. The trend is driven by Splunk’s continued investment in its products and partner ecosystem as well as the creativity of customers and the flexibility to deploy Splunk IoT solutions as software, cloud services or in a hybrid environment. Customers are using Splunk® solutions to collect ...
You have your devices and your data, but what about the rest of your Internet of Things story? Two popular classes of technologies that nicely handle the Big Data analytics for Internet of Things are Apache Hadoop and NoSQL. Hadoop is designed for parallelizing analytical work across many servers and is ideal for the massive data volumes you create with IoT devices. NoSQL databases such as Apache HBase are ideal for storing and retrieving IoT data as “time series data.”
Clearly the way forward is to move to cloud be it bare metal, VMs or containers. One aspect of the current public clouds that is slowing this cloud migration is cloud lock-in. Every cloud vendor is trying to make it very difficult to move out once a customer has chosen their cloud. In his session at 17th Cloud Expo, Naveen Nimmu, CEO of Clouber, Inc., will advocate that making the inter-cloud migration as simple as changing airlines would help the entire industry to quickly adopt the cloud wit...
As the world moves towards more DevOps and microservices, application deployment to the cloud ought to become a lot simpler. The microservices architecture, which is the basis of many new age distributed systems such as OpenStack, NetFlix and so on, is at the heart of Cloud Foundry - a complete developer-oriented Platform as a Service (PaaS) that is IaaS agnostic and supports vCloud, OpenStack and AWS. In his session at 17th Cloud Expo, Raghavan "Rags" Srinivas, an Architect/Developer Evangeli...
DevOps is gaining traction in the federal government – and for good reasons. Heightened user expectations are pushing IT organizations to accelerate application development and support more innovation. At the same time, budgetary constraints require that agencies find ways to decrease the cost of developing, maintaining, and running applications. IT now faces a daunting task: do more and react faster than ever before – all with fewer resources.
SYS-CON Events announced today that VividCortex, the monitoring solution for the modern data system, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. The database is the heart of most applications, but it’s also the part that’s hardest to scale, monitor, and optimize even as it’s growing 50% year over year. VividCortex is the first unified suite of database monitoring tools specifically desi...