Unassociated Document
United States
Securities and Exchange Commission
Washington, D.C. 20549
 
FORM 6-K
 
Report of Foreign Issuer
Pursuant To Rule 13a-16 or 15d-16
of The Securities Exchange Act of 1934

For the month of April, 2008    Commission File Number 1-12090
 
GRUPO RADIO CENTRO, S.A.B. de C.V.
(Translation of Registrant’s name into English)
 
Constituyentes 1154, Piso 7
Col. Lomas Altas, México D.F. 11954
(Address of principal office)
 
(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
 
(Check One) Form 20-F x Form 40-F o
 
(Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
 
(Check One) Yes o No x
 
(If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b). 82-__.)
 

FOR IMMEDIATE RELEASE
April 22, 2008
 
Grupo Radio Centro Reports First Quarter 2008 Results

Mexico City, April 22, 2008 - Grupo Radio Centro, S.A.B. de C.V. (NYSE: RC, BMV: RCENTRO-A) (the “Company”), one of Mexico’s leading radio broadcasting companies, announced today its results of operations for the first quarter ended March 31, 2008. All figures were prepared in accordance with the Mexican Financial Reporting Standards (“MFRS”) issued by the Mexican Board for Research and Development of Financial Information Standards.

First Quarter Results

Broadcasting revenue for the first quarter 2008 was Ps. 128,258,000, representing a slight decrease compared to the Ps. 128,534,000 reported in the same period of 2007. This decrease is attributable to lower advertising expenditures by the Company’s clients during the first quarter 2008 compared to the first quarter 2007. This was a result of Holy Week taking place during the first quarter 2008, compared to 2007, when Holy Week fell during the second quarter.

The Company’s broadcasting expenses (excluding depreciation, amortization and corporate, general and administrative expenses) for the first quarter 2008 totaled Ps. 103,981,000, a 5.4% decrease compared to the Ps. 109,969,000 reported in the first quarter 2007. This decrease was primarily attributable to lower sales commissions as well as lower advertising and promotion expenses during the first quarter 2008 compared to the first quarter 2007.
 
For the first quarter 2008, the Company reported broadcasting income (i.e., broadcasting revenue minus broadcasting expenses, excluding depreciation, amortization and corporate, general and administrative expenses) of Ps. 24,277,000, a 30.8% increase compared to the Ps. 18,565,000 reported in the first quarter 2007. This increase in broadcasting income was mainly attributable to the decrease in broadcasting expenses described above.

Depreciation and amortization expenses for the first quarter 2008 were Ps. 7,681,000, a 14.0% decrease compared to the Ps. 8,929,000 reported in the first quarter of 2007. This decrease was attributable to the Company no longer recording depreciation on certain assets after the fourth quarter 2006 due to the conclusion of their useful life.

For the first quarter 2008, the Company’s corporate, general and administrative expenses were Ps. 3,495,000, a slight increase compared to the Ps. 3,439,000 reported in the first quarter 2007.
 
The Company reported operating income of Ps. 13,101,000 in the first quarter 2008, a 111.4% increase compared to the Ps. 6,197,000 reported in the first quarter 2007. This increase was mainly due to the decrease in broadcasting expenses during the first quarter 2008 compared to the first quarter 2007.

For the first quarter 2008, other expenses, net, were Ps. 11,823,000, a 7.7% increase compared to the Ps. 10,977,000 reported in the first quarter 2007. This increase is primarily attributable to the increase in expenses related to the company’s listing on the Bolsa Mexicana de Valores (the Mexican Stock Exchange) and The New York Stock Exchange, as well as the inclusion of employee profit sharing expenses in this line item, as a result of a reclassification required by Bulletin D-3 (“Employee Benefits”), published by the Mexican Board for Research and Development of Financial Information Standards, which took effect in the fourth quarter 2007. Employee profit sharing expenses were previously recorded as a separate line item (“Provisions for income tax and employee profit sharing”).
 

Grupo Radio Centro, S.A.B. de C.V.
First Quarter 2008 Results
 
The Company’s comprehensive financing cost for the first quarter 2008 was Ps. 137,000, compared to a comprehensive financing gain of Ps. 510,000 for the first quarter 2007. This variation was mainly attributable to a 57.4% decrease in interest income during the period, reflecting a decline in the Company’s cash and temporary investments, primarily as a result of a dividend payment in March 2008.

For the first quarter of 2008, the Company reported income before income taxes of Ps. 1,141,000 compared to a loss before income taxes of Ps. 4,270,000 reported for the first quarter 2007, primarily a result of lower broadcasting expenses.

The Company recorded income taxes of Ps. 331,000 in the first quarter 2008, compared to a negative provision of Ps. 1,302,000 in the first quarter 2007, as a result of higher taxable income.

As a result of the foregoing, the Company’s net income for the first quarter 2008 was Ps. 810,000, compared to net loss of Ps. 2,968,000 in the first quarter 2007.
 

Cessation of inflation accounting under MFRS

In accordance with MFRS inflation accounting rules, the Company’s first quarter 2007 financial statements are expressed in constant pesos as of December 31, 2007. As a result of a change in MFRS, the Company will no longer use inflation accounting for periods beginning in 2008, unless the economic environment in which we operate qualifies as “inflationary,” as defined by MFRS. Because the economic environment in the first quarter 2008 did not qualify as inflationary, the Company did not use inflation accounting to prepare the first quarter 2008 financial statements.

Grupo Radio Centro, S.A.B. de C.V.
First Quarter 2008 Results
 
Company Description

Grupo Radio Centro owns and/or operates 14 radio stations, of which 11 are in Mexico City. The Company’s principal activities are the production and broadcasting of musical and entertainment programs, talk shows, news and special events programs. Revenue is primarily derived from the sale of commercial airtime. In addition to the Organización Radio Centro radio stations, the Company also operates Grupo RED radio stations and Organización Impulsora de Radio (OIR), a radio network that acts as the national sales representative for, and provides programming to, Grupo Radio Centro-affiliated radio stations.

 
Note on Forward Looking Statements
 
This release may contain projections or other forward-looking statements related to Grupo Radio Centro that involve risks and uncertainties. Readers are cautioned that these statements are only predictions and may differ materially from actual future results or events. Readers are referred to the documents filed by Grupo Radio Centro with the United States Securities and Exchange Commission, specifically the most recent filing on Form 20-F, which identifies important risk factors that could cause actual results to differ from those contained in the forward-looking statements. All forward-looking statements are based on information available to Grupo Radio Centro on the date hereof, and Grupo Radio Centro assumes no obligation to update such statements.
 

RI Contacts
  
In México:
In NY:
Pedro Beltrán / Alfredo Azpeitia
Maria Barona / Peter Majeski
Grupo Radio Centro, S.A.B. de C.V.
i-advize Corporate Communications, Inc.
Tel: (5255) 5728-4800 Ext. 7018
Tel: (212) 406-3690
aazpeitia@grc.com.mx 
grc@i-advize.com.mx 
 

Grupo Radio Centro, S.A.B. de C.V.
First Quarter 2008 Results
 
GRUPO RADIO CENTRO, S.A.B. DE C.V.
CONSOLIDATED UNAUDITED BALANCE SHEET
as of March 31, 2008 and 2007 (1)
(figures in thousands of Mexican pesos ("Ps.") and U.S. dollars ("U.S. $")(2) )

   
 March 31
  
   
2008
      
2007
  
   
U.S. $(2)
  
Ps.
  
Ps.
  
ASSETS
              
Current assets:
                    
Cash and temporary investments
    
6,250
    
66,849
    
146,113
  
                     
Accounts receivable:
                    
Broadcasting, net
    
14,482
    
154,903
    
192,285
  
Other
    
806
    
8,618
    
8,976
  
     
15,288
    
163,521
    
201,261
  
Prepaid expenses
    
3,100
    
33,159
    
23,098
  
Total current assets
    
24,638
    
263,529
    
370,472
  
                     
Property and equipment, net
    
43,973
    
470,351
    
480,134
  
Deferred charges, net
    
525
    
5,614
    
4,205
  
Excess of cost over book value of subsidiaries
    
77,491
    
828,863
    
828,862
  
Other assets
    
303
    
3,239
    
3,380
  
Total assets
    
146,930
    
1,571,596
    
1,687,053
  
LIABILITIES
                    
Current:
                    
Advances from customers
    
10,775
    
115,253
    
119,835
  
Other accounts payable and accrued expenses
    
6,542
    
69,969
    
58,916
  
Taxes payable
    
1,594
    
17,054
    
56,715
  
Total current liabilities
    
18,911
    
202,276
    
235,466
  
                     
Long-Term:
                    
Deferred income tax
    
258
    
2,762
    
9,229
  
Reserve for labor obligations
    
5,584
    
59,726
    
57,877
  
                     
Total liabilities
    
24,753
    
264,764
    
302,572
  
STOCKHOLDERS' EQUITY
                    
Capital stock
    
105,683
    
1,130,409
    
1,130,409
  
Retained (deficit) earnings
    
12,331
    
131,898
    
209,559
  
Provision for repurchase of shares
    
4,099
    
43,839
    
43,839
  
Minority interest
    
64
    
686
    
674
  
Total stockholders' equity
    
122,177
    
1,306,832
    
1,384,481
  
Total liabilities and stockholders' equity
    
146,930
    
1,571,596
    
1,687,053
  
 
(1)
Amounts for the first quarter 2007 are expressed in Mexican pesos with purchasing power as of December 31, 2007. As a result of a change in MFRS for periods beginning in 2008, we have not prepared 2008 amounts using inflation accounting or re-expressed 2007 amounts as of March 31,2008.
 
(2)
Peso amounts have been translated into U.S. dollars, solely for the convenience of the reader, at the rate of Ps. 10.6962 per U.S. dollar, the rate on March 31, 2008.


Grupo Radio Centro, S.A.B. de C.V.
First Quarter 2008 Results
  
GRUPO RADIO CENTRO, S.A.B. DE C.V.
CONSOLIDATED UNAUDITED STATEMENT OF INCOME
for the three-month periods ended March31, 2008 and 2007 (1)
(figures in thousands of Mexican pesos ("Ps.") and U.S. dollars ("U.S. $")(2) , except per Share and per ADS amounts)
 
   
  March 31
  
   
 2008
      
2007
  
   
 U.S.$(2)
  
Ps.
  
 Ps.
  
Broadcasting revenue (3)
   
11,991
    
128,258
    
128,534
  
Broadcasting expenses, exlcuding depreciation, amortization and corporate, general and administrative expenses
    
9,721
    
103,981
    
109,969
  
Broadcasting income
    
2,270
    
24,277
    
18,565
  
                     
Depreciation and amortization
    
718
    
7,681
    
8,929
  
Corporate, general and administrative expenses
    
327
    
3,495
    
3,439
  
Operating income
    
1,225
    
13,101
    
6,197
  
                     
Other expenses, net
    
(1,105
)
  
(11,823
)
  
(10,977
)
                     
Com prehensive financing income (cost):
                    
Interest expense
    
(82
)
  
(874
)
  
(528
)
Interest income (3)
    
72
    
767
    
1,801
  
Gain (loss) on foreign currency exchange, net
    
(3
)
  
(30
)
  
33
  
Gain (loss) on net monetary position (4)
    
-
    
-
    
(796
)
     
(13
)
  
(137
)
  
510
  
Income (loss) before income taxes
    
107
    
1,141
    
(4,270
)
                     
Income taxes
    
31
    
331
    
(1,302
)
Net income (loss)
    
76
    
810
    
(2,968
)
                     
Net income (loss) applicable to:
                    
Majority interest
    
75
    
801
    
(2,973
)
Minority interest
    
1
    
9
    
5
  
     
76
    
810
    
(2,968
)
Net income (loss) per Series A Share (5)
    
0.055
    
0.583
    
2.430
  
Net income (loss) per ADS (5)
    
0.491
    
5.247
    
21.871
  
Weighted average common shares outstanding (000's) (5)
          
162,724
    
162,500
  

(1)
Amounts for the first quarter 2007 are expressed in Mexican pesos with purchasing power as of December 31, 2007. As a result of a change in MFRS for periods beginning in 2008, we have not prepared 2008 amounts using inflation accounting or re-expressed 2007 amounts as of  March 31, 2008.

(2)
Peso amounts have been translated into U.S. dollars, solely for the convenience of the reader, at the rate of Ps. 10.6962 per U.S. dollar, the rate on March 31, 2008.

(3)
Broadcasting revenue for a particular period includes (as a reclassification of interest income) interest earned on funds received by the Company pursuant to advance sales of commercial airtime to the extent that the underlying funds were earned by the Company during the period in question. Advances from advertisers are recognized as broadcasting revenue only when the corresponding commercial airtime has been transmitted. Interest earned and treated as broadcasting revenue for the first quarter of 2008 and 2007 was Ps. 555,000 and Ps. 799,000, respectively.

(4)
As a result of a change in MFRS for periods beginning in 2008, we will no longer use inflation accounting unless the economic enviroment is "inflationary", as defined by MFRS. Since the economic enviroment was not inflationary in the first quarter 2008, we have not reported gain (loss) on net monetary position for this period.

(5)
Earnings per share calculations are made for the last twelve months as of the date of the income statement, as required by the Mexican Stock Exchange. 
 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
     
 
Grupo Radio Centro, S.A.B. de C.V.
 
(Registrant)
 
 		  
 		  
 
Date: April 22, 2008  By:   /s/ Pedro Beltrán Nasr
 
Name: Pedro Beltrán Nasr
  Title: Chief Financial Officer