Revenues Top Analysts' Estimates, Growing 98% for the Year
Company Reports 39% Improvement in Q4 1999 EBITDA
MIAMI, Feb. 24 /PRNewswire/ -- Radio Unica Communications Corp.
(Nasdaq: UNCA), the nation's only Spanish language radio network, today
announced record financial results for the fourth quarter and year ended
December 31, 1999.
Financial Results Improve
As expected, revenues for the quarter ended December 31, 1999 increased by
183% to $5.1 million from $1.8 million in the same period of 1998. EBITDA
(defined as loss from operations plus depreciation and amortization) improved
by 39% to $(2.8) million from $(4.6) million in the same period last year.
The net loss applicable to common shareholders for the fourth quarter of 1999
was $7.3 million, or $0.38 per basic and diluted share, compared to a net loss
of $6.2 million, or $0.56 per basic and diluted share in the same period last
year.
For the year ended December 31, 1999, Radio Unica generated a 98% increase
in revenues, to $16.2 million, compared to revenues of $8.2 million in 1998.
EBITDA improved by 20% to $(14.6) million, compared to $(18.3) million in
1998, excluding one time charges, consisting of a non-cash stock option
compensation expense charge of $19.6 million as well as a one-time payment of
$2.0 million to terminate a local marketing agreement for Los Angeles radio
station KVCA-AM. The net loss applicable to common shareholders for the year
ended December 31, 1999 was $57.2 million, or $4.37 per basic and diluted
share, versus a net loss of $24.7 million or $2.86 per basic and diluted share
last year. The net loss per share applicable to common shareholders for the
year ended December 31, 1999 includes the one-time charges described above.
Radio Unica completed its IPO on October 19, 1999, selling 6,840,000
shares of common stock. Net proceeds from the offering (after deducting the
underwriters' discount and expenses) were approximately $99.5 million.
Management Sees Solid Year 2000
Commenting on today's announcement, Joaquin F. Blaya, Chairman and Chief
Executive Officer of Radio Unica, said, "We are pleased to report these
improvements to our financial results for the year ended December 31, 1999.
With our 14 currently owned and/or operated stations and 34 affiliated
stations, Radio Unica effectively reaches out to over 80% of the U.S. Hispanic
community with our unique, star-based talk programming and exclusive coverage
of the world's major sporting events of interest to our listeners. In
addition, nine of our 12 markets are now rated by Arbitron, a trend we see
continuing as we expand our station base."
Mr. Blaya continued, "Our successful business model is also helping us to
attract a host of new advertisers, as announced earlier this week. As a
result, we've been able to more than double our ad rates, and we're seeing
sales levels for this year that are already outpacing those of 1999. Looking
ahead, we expect to experience a very solid year 2000, with results in line
with current consensus analyst estimates."
Recent Company Highlights
-- Radio Unica recently reported that it had sold out its network coverage
of the Gold Cup 2000 soccer event. Advertisers include Chevrolet,
Miller Genuine Draft, Western Union, Honda, Allstate and El Sitio.com.
These companies join Radio Unica's existing advertiser base of such
notable names as Moneygram, Sears, Wal-Mart, Honda, Chevrolet,
Toys-R-Us, and Procter & Gamble, among others. Radio Unica is the
exclusive Spanish language radio network of Gold Cup 2000.
-- Additional new advertisers to Radio Unica include Terra.com, Nissan and
Showtime.
-- In early January, Radio Unica entered the San Diego market with a two-
year time brokerage agreement and option to acquire KURS-AM 1040, the
only AM Spanish language station serving San Diego (the 10th largest
Hispanic market). As a result, Radio Unica now operates stations in 12
of the top 20 U.S. Hispanic markets.
-- In late December, Radio Unica announced the strengthening of its
California presence with the acquisition of KFRE-AM 940 in Fresno --
the country's 11th largest Hispanic market. The transaction is
expected to close by the end of March 2000.
-- The acquisition of radio station KCUV-AM 1150 in Denver, Colorado in
November 1999 allowed Radio Unica to begin serving the nation's 16th
largest Hispanic market -- home to nearly 400,000 Hispanics.
-- Radio Unica expanded its Board of Directors to eight members in
November 1999 with the addition of Leonard S. Coleman, Jr. and Richard
E. Dillon. Mr. Coleman has served as President of the National League
of Major League Baseball since 1994 and currently serves on the Board
of Directors of the Omnicom Group, H.J. Heinz Company, Cendant
Corporation, Avis Rent a Car, Inc., Owens Corning and New Jersey
Resources. Mr. Dillon, considered a pioneer in marketing to Hispanics
in America, founded Mendoza Dillon, an advertising agency specializing
in the U.S. Hispanic market. Prior to founding his company, Mr. Dillon
was President of Johnson & Johnson, Mexico and held senior marketing
and management positions with General Foods in the U.S. and Mexico.
About Radio Unica Communications Corp.
Radio Unica Communications Corp., based in Miami, Florida, is the only
national Spanish-language radio network in the country and reaches
approximately 80% of Hispanic USA through a group of owned and/or operated
stations and affiliates located nationwide. The Company's operations include
the Radio Unica Network and an owned and/or operated station group covering
the top U.S. Hispanic markets including Los Angeles, New York, Miami, San
Francisco, Chicago, Houston, San Antonio, Dallas, Phoenix, Denver, San Diego
and Fresno.
Radio Unica corners the market in sports with the exclusive U.S. Spanish-
language radio broadcast rights to the 2000 and 2004 Summer Olympics, World
Cup Championship of Club Teams 2000, 2001 and 2002, Gold Cup 2000 and 2002,
Copa America 2001, and the World Cup 2002 qualifying matches. Radio Unica
also owns the exclusive U.S. Spanish-language radio broadcast rights to the
2000 NBA Finals.
The Network's programming line-up includes contemporary-theme talk shows
hosted by internationally known personalities such as Pedro Sevcec, Dr. Isabel
Gomez-Bassols, Charytin and Mauricio Zeillic; sports-talk hosted by Jorge
Ramos and other top names in sports broadcasting; and newscasts on the hour,
24 hours a day. Radio Unica also airs segments featuring the #1 Hispanic talk
show host in the country, Cristina, and the most recognized Hispanic female
news anchor, Maria Elena Salinas. Many programs are interactive, allowing
listeners to call in toll-free.
This press release contains forward-looking information based upon the
Company's current best judgment and expectations. Actual results could vary
from those presented herein. The risks and uncertainties associated with the
forward-looking information include economic factors, the success of
programming strategies and other business factors. For further information,
please refer to the Company's filings with the Securities and Exchange
Commission.
For more information on Radio Unica, via fax at no charge, please dial
1-800-PRO-INFO and enter the company code UNCA, or visit our web sites at
http://www.radiounica.com and http://www.frbinc.com .
Statement of Operations
(in thousands except per share amounts)
Three months ended For the year ended
December 31, December 31,
1999 1998 1999 1998
(unaudited)
Net revenue $5,136 $1,799 $16,217 $8,218
Operating expenses:
Direct operating expenses 1,044 550 3,748 1,853
Selling, general and
administrative expenses 2,781 3,108 11,840 10,064
Network expenses 3,081 2,014 12,213 11,812
Corporate expenses 985 730 3,047 2,771
Depreciation and
amortization 1,374 794 5,185 1,697
LMA termination fee -- -- 2,000 --
Stock option compensation
expense -- -- 19,591 --
9,265 7,196 57,624 28,197
Loss from operations (4,129) (5,397) (41,407) (19,979)
Other income (expense):
Interest expense (3,645) (3,190) (14,053) (6,038)
Interest income 1,061 917 1,697 1,749
Equity in loss of equity
investee -- -- -- --
Miscellanous (21) -- (21) (15)
(2,605) (2,273) (12,377) (4,304)
___________________________________________
Loss before income taxes (6,734) (7,670) (53,784) (24,283)
Income tax (expense) benefit (312) 2,447 (312) 2,447
Net loss (7,046) (5,223) (54,096) (21,836)
Accrued dividends on
Series A redeemable
cumulative preferred stock 206 934 3,149 2,851
Net loss applicable to
common shareholders $(7,252) $(6,157) $(57,245) $(24,687)
Net loss per common share
applicable to common
shareholders - basic
and diluted $(0.38) $(0.56) $(4.37) $(2.86)
Weighted average common
shares outstanding -
basic and diluted 19,023 11,058 13,090 8,637
EBITDA before one-time
charges (a) $(2,755) $(4,603) $(14,631) $(18,282)
(a) EBITDA before one-time charges is caculated by taking the loss from
operation and adding back depreciation and amortization, LMA
termination fee and stock option compensation expense.
SOURCE Radio Unica Communications Corp.
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Related links:
http://www.radiounica.com
CONTACT:
Marilyn Fajardo, 305-463-5140, e-mail,
marilyn.fajardo@radiounica.com, Eileen Perez, 305-463-5141,
e-mail, eileen.perez@radiounica.com, both of Radio Unica
Communications Corp.; Media Info, Dave Closs, Analyst Info,
Elizabeth Eakeley, or General Info, Paula Schwartz, all of The
Financial Relations Board, 212-661-8030, for Radio Unica
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