Third Quarter Revenue Jumps 60% Over 1998; Nine Month Revenues Up 73%
Company Completes Initial Public Offering in October
MIAMI, Nov. 10 /PRNewswire/ -- Radio Unica Communications Corp
(Nasdaq: UNCA) today announced actual and pro forma results for the third
quarter and nine month periods ended September 30, 1999.
Third Quarter Highlights
Revenue for the third quarter of 1999 increased 60% to $4.7 million
compared to revenues of $3.0 million for the third quarter ended
September 30, 1998. Earnings before interest, taxes, depreciation,
amortization and one-time charges were $(3.2) million, for the third quarter
of 1999, compared to $(3.7) million, for the third quarter of 1998. The net
loss for the third quarter of 1999 was $27.8 million, or $1.33 per basic and
diluted share on a pro forma basis, versus a net loss of $6.1 million for the
third quarter of 1998, or $0.29 per share basic and diluted, on a pro forma
basis. The pro forma net loss per share for the third quarter of 1999
includes a one-time, non-cash stock option compensation expense charge of
approximately $19.6 million. Pro forma basic and diluted net loss per share
figures were computed assuming the 6,840,000 common shares issued in
connection with the initial public offering ("IPO") and the 2,974,909 common
shares issued in connection with the exchange of the preferred stock, were
outstanding since January 1, 1998.
Nine Month Results
During the first nine months of 1999, Radio Unica generated revenue of
$11.1 million, a 73% increase over the $6.4 million of revenue generated
during the same nine-month period last year. Earnings before interest, taxes,
depreciation, amortization and one time charges were $(11.9) million for the
nine months ended September 30, 1999 as compared to approximately
$(13.7) million for the comparable period in the prior year. The net loss for
the nine months ended September 30, 1999 was $47.1 million, or $2.25 per basic
and diluted share on a pro forma basis versus a net loss of $16.6 million for
the comparable period in the prior year, or $0.94 per basic and diluted share
on a pro forma basis. The pro forma net loss per share for the nine months
ended September 30, 1999 includes a one-time, 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 Company completed its initial public offering on October 19, 1999
selling 6,840,000 shares of common stock at $16.00 per share. The Company
also issued 2,974,909 common shares in connection with the exchange of its
preferred stock for common stock at the time of the IPO. Net proceeds from
the offering, after deduction of the underwriters' discount and expenses, were
approximately $98.7 million. The net proceeds will be used to repay the
indebtedness under the revolving credit facility, to acquire radio stations,
upgrade existing stations and for general corporate purposes.
Commenting on the Company's improved results, Joaquin Blaya, Chairman and
Chief Executive Officer of Radio Unica, said, "We are delighted to report to
our shareholders our financial results, and especially, our record revenues
for the three and nine month periods of 1999. Radio Unica has come a long way
in a very short period of time.
"As many of our followers know, Radio Unica -- the nation's only Spanish
language radio network -- was founded three years ago in order to fill the
needs of what we viewed as a heavily under served U.S. Hispanic market -- one
expected to account for nearly 15.5% of the total U.S. population by 2010 and
whose buying power may double to nearly $1 billion within the same time frame.
Our mission was also to create the third national advertising platform
targeting the Hispanic market."
"As a result of these ongoing efforts, and our strong management and on-
air talent, including Pedro Sevcec, Dr. Isabel Gomez-Bassols, Jorge Ramos,
Cristina, Maria Elena Salinas, Charytin and Mauricio Zeillic, Radio Unica now
receives more than 25,000 listener call-ins each day -- up 200% since 1998.
Current advertisers include Moneygram, Sears, Wal-Mart, Honda, Chevrolet,
Toys 'R' Us, Procter & Gamble and others. Additionally, I'm proud to say that
8 of 10 of our stations are being rated by Arbitron -- certainly, another
important measure of our success. We look forward to improving upon all of
these positive trends, and others in the months and years to come."
About Radio Unica Communications Corp.
Radio Unica Communications Corp is the only national Spanish-language
radio network in the country and reaches approximately 80% of Hispanic USA
through its 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 and Denver. Radio Unica owns the exclusive U.S.
Spanish-language radio broadcast rights to FIFA's World Cup Championship of
Clubs 2000-2002; the 2000 and 2004 Summer Olympics; Copa Oro 2000 and 2002;
Copa America 2001; and the World Cup 2002 qualifying matches, in addition to
the 2000 NBA Finals and the 2000 NBA All-Star Game.
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.
CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30, December 31,
ASSETS 1999 1998
(Unaudited)
Current assets:
Cash and cash equivalents $76 $38,894
Restricted cash 135 12,600
Accounts receivable, net 4,429 1,233
Prepaid expenses 886 5,012
Total current assets 5,526 57,739
Property and equipment, net 16,480 11,769
Broadcast licenses, net 85,400 43,730
Other intangible assets, net 9,847 9,894
Other assets 750 371
$118,003 $123,503
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable and accrued expenses $1,963 $4,121
Notes payable 15,100 750
Total current liabilities 17,063 4,871
Other liabilities 314 --
Deferred taxes 1,642 1,642
Senior discount notes 114,435 105,029
Commitments and contingencies
Series A redeemable cumulative preferred stock
$.01 par value; 450,000 shares authorized;
353,907 and 353,560 shares issued and outstanding
at September 30, 1999 and December 31, 1998,
respectively 41,254 38,266
Stockholders' deficit:
Common stock $.01 par value; 40,000,000 shares
authorized, 11,127,928 and 11,071,074 shares
issued and outstanding at September 30, 1999 and
December 31, 1998, respectively 111 111
Additional paid-in-capital (deficiency) 13,925 (2,724)
Accumulated deficit (70,741) (23,692)
Total stockholders' deficit (56,705) (26,305)
$118,003 $123,503
Statement of Operations
(in thousands except per share amounts)
(unaudited)
Three months ended Nine months ended
September 30, September 30,
1999 1998 1999 1998
Net revenue $4,734 $2,955 $11,081 $6,419
Operating expenses:
Direct operating expenses 996 414 2,704 1,303
Selling, general and
administrative expenses 2,697 2,609 9,059 6,956
Network expenses 3,500 2,915 9,132 9,799
Corporate expenses 722 735 2,062 2,041
Depreciation and amortization 1,398 530 3,811 902
LMA termination fee -- -- 2,000 --
Stock option compensation
expense 19,591 -- 19,591 --
28,904 7,203 48,360 21,001
Loss from operations (24,170) (4,248) (37,279) (14,582)
Other income (expense), net (3,669) (1,881) (9,772) (2,031)
Net loss (27,839) (6,129) (47,051) (16,613)
Accrued dividends on Series A
redeemable cumulative preferred
stock 1,007 914 2,943 1,917
Net loss applicable to common
shareholders $(28,846) $(7,043) $(49,994) $(18,530)
Net loss per common share
applicable to common shareholders
- basic and diluted $(2.60) $(0.63) $(4.51) $(2.36)
Proforma net loss per common
share - basic and diluted $(1.33) $(0.29) $(2.25) $(0.94)
Supplemental Financial Data:
Earnings before interest, taxes,
depreciation, amortization and
one-time charges (A) $(3,181) $(3,718) $(11,876) $(13,680)
Weighted average common shares
outstanding - basic and diluted 11,111 11,110 11,091 7,853
Proforma weighted average common
shares outstanding - basic and
diluted (B) 20,926 20,925 20,906 17,668
(A) Earnings before interest, taxes, depreciation, amortization and
one-time charges is calculated by taking loss from operations and
adding back depreciation and amortization, LMA termination fee and
stock option compensation expense.
(B) Proforma basic and diluted net loss per share are computed using the
sum of the weighted average number of shares of common stock assuming
the 6,840,000 shares issued in connection with the initial public
offering (IPO) as well as the exchange of the Series A redeemable
cumulative preferred stock for 2,974,909 shares of common stock at the
time of the IPO had been issued on January 1, 1998.
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 the web sites at
http://www.radiounica.com and http://www.frbinc.com .
SOURCE Radio Unica Communications
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Related links:
http://www.radiounica.com
CONTACT:
Investors, Steve Dawson, Chief Financial
Officer, 305-463-5000, Media, Marilyn Fajardo, Director of Public
Relations, 305-463-5140, both of Radio Unica Communications
Corp.; General, Paula Schwartz, Media, David E. Closs, or
Analysts, Elizabeth K. Eakeley, all of The Financial Relations
Board, 212-661-8030, for Radio Unica Communications
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