Hemisphere Media Group Announces Fourth Quarter and Full Year 2015 Financial Results

3/6/16

MIAMI--(BUSINESS WIRE)--Hemisphere Media Group, Inc. (NASDAQ:HMTV), the only publicly traded pure-play U.S. media company targeting the high growth Spanish-language television and cable networks business in the U.S. and Latin America, today announced financial results for the fourth quarter and year-ended December 31, 2015.

Alan Sokol, CEO of Hemisphere, stated, “2015 was a very strong year for our business. The 16% increase in revenues and Adjusted EBITDA for the full year were the result of our unique business proposition and our ability to seize on the opportunity to serve the highly attractive and rapidly growing U.S. Hispanic and Latin America market. As we look ahead to 2016, we are confident that our networks' unique programming and solid audience ratings will result in robust retransmission and subscriber fee and advertising revenue growth.”

On April 1, 2014, Hemisphere closed on the acquisition of three Spanish-language television networks—Pasiones, Centroamerica TV and Television Dominicana (the “Acquired Cable Networks”). Results of the Acquired Cable Networks are included in the Company’s consolidated statements of operations from the acquisition date. The Company’s results for the three months ended December 31, 2015 are comparable with the prior year period; however, the comparability of the Company’s results are affected for the full year ended December 31, 2015.

Net revenues increased $3.0 million, or 9.1%, for the three months ended December 31, 2015, and increased $17.8 million, or 15.9%, for the full year ended December 31, 2015. These increases, for both the three month and full year periods, were primarily driven by growth in advertising revenues and higher subscriber and retransmission fees. The increase for the full year ended December 31, 2015 was also due to the inclusion of the Acquired Cable Networks, which were not included in the prior year's first quarter.

Operating expenses were $25.2 million for the three months ended December 31, 2015, an increase of 9.4%, as compared to operating expenses of $23.0 million for the same period in 2014. Operating expenses were $94.9 million for the full year ended December 31, 2015, an increase of 10.4%, as compared to operating expenses of $86.0 million for the same period in 2014. These increases, for both the three month and full year periods, were driven primarily by increased investment in programming and higher sales and marketing costs, consistent with greater sales efforts across the Company’s networks, as well as the launch of advertising on Cinelatino. The increase for the full year ended December 31, 2015 was also due to the inclusion of the Acquired Cable Networks, which were not included in the prior year's first quarter.

Net income was $4.9 million for the three months ended December 31, 2015, an increase of $0.6 million, as compared to net income of $4.3 million for the same period in 2014. Net income was $13.7 million for the full year ended December 31, 2015, an increase of $3.2 million, as compared to $10.6 million for the same period in 2014.

Adjusted EBITDA was $16.9 million for the three months ended December 31, 2015, an increase of 5.5%, as compared to Adjusted EBITDA of $16.0 million for the same period in 2014. Adjusted EBITDA was $58.1 million for the full year ended December 31, 2015, an increase of 16.2%, as compared to Adjusted EBITDA of $50.0 million for the same period in 2014. These increases, in both the three month and full year periods, were due to growth in advertising revenues and subscriber and retransmission fees. The increase for the full year period was also due to the inclusion of the operating results of the Acquired Cable Networks, which were not included in the prior year's first quarter.

The Company forecasts a low double-digit percentage increase in Adjusted EBITDA for 2016 driven by strong growth in subscriber and retransmission fees and advertising revenue.

As of December 31, 2015, the Company had $219.9 million in debt and $179.5 million of cash. The Company's leverage ratio was approximately 3.8 times, and net leverage ratio was approximately 0.7 times. In December 2015, the Company repurchased 1.3 million warrants at a total cost of $1.8 million.

About Hemisphere Media Group, Inc.

Hemisphere Media Group (NASDAQ:HMTV) is the only publicly traded pure-play U.S. media company targeting the high growth Spanish-language television and cable networks business in the U.S. and Latin America. Headquartered in Miami, Florida, 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 with over 16 million subscribers across the U.S., Latin America and Canada, including 4.4 million subscribers in the U.S. and 11.9 million subscribers in Latin America, featuring the largest selection of contemporary Spanish-language blockbusters and critically-acclaimed titles from Mexico, Latin America, Spain and the Caribbean.
  • WAPA, Puerto Rico’s leading broadcast television network with the highest primetime and full day ratings in Puerto Rico. Founded in 1954, WAPA produces more than 75 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. WAPA America is distributed in the U.S. to 5.2 million subscribers.
  • Pasiones, dedicated to showcasing the most popular telenovelas and drama series, distributed in the U.S. and Latin America. Pasiones has 4.4 million subscribers in the U.S. and 10.2 million subscribers in 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. Centroamerica TV is distributed in the U.S. to 4.0 million subscribers.
  • Television Dominicana, the leading network targeting Dominicans living in the U.S., featuring the most popular news, entertainment and baseball programming from the Dominican Republic. Television Dominicana is distributed in the U.S. to 3.0 million subscribers.

It's on us. Share your news here.

Submit your stories and articles to citybizlist today.