Fourth Quarter 2010 Earnings Report

Transcription

1 Fourth Quarter Earnings Report Corporación Interamericana de Entretenimiento, S.A.B. de C.V. Mexico City, February 28, Corporación Interamericana de Entretenimiento, S.A.B. de C.V. ( CIE, the Company, or the Group ) (BMV: CIE B), the leading out of home entertainment company in Latin America, today announced its consolidated financial and operating results for the fourth quarter of the year ended December 31, 1. Consolidated revenues increased 13 during the fourth quarter of, and 10 during the year. Consolidated EBITDA increased 29 during the fourth quarter of, and 20 during the year. In the fourth quarter of, EBITDA margin was 19.8, compared with 17.3 in the same quarter of the prior year, and for the year it was 19.3, compared with 17.6 for. Total consolidated debt dropped Ps. 226 to Ps. 6,807, in comparison with Ps. 7,033 at the close of the prior year. Consolidated Key Figures 4Q 4Q FY FY Revenues 3,190 2, ,194 9, EBITDA ,964 1, EBITDA Margin CFR (153) (232) 34 (549) (821) 33 Other (Earnings) Expenses, Net (92) (90) Net Result 121 (501) N.A. 109 (957) N.A. Majority Net Result (56) (370) 85 (167) (811) 79 Total Consolidated Debt 6,807 7,033 (3) 1 The numbers presented throughout this document related to and are expressed in millions of nominal Mexican pesos, unless otherwise specified, and they have been prepared in conformance with Mexico s Financial Information Standards. Numbers may vary due to rounding. EBITDA is Earnings before Interest, Taxes, Depreciation and Amortization. N.A. means Not Apply. FOURTH QUARTER EARNINGS REPORT Page 1

2 REVENUES ANALYSIS OF THE FOURTH QUARTER ("the quarter" or "the period") 4Q 4Q FY FY CIE Entertainment 1,355 1, ,629 3,497 4 CIE Las Américas 1, ,255 3, CIE Commercial ,062 1,961 5 Other Businesses CONSOLIDATED 3,190 2, ,194 9, Consolidated revenues increased 13 to Ps. 3,190 during the fourth quarter of, compared with Ps. 2,826 recorded in the same period of. At CIE Entertainment, revenues were Ps. 1,355, which is 11 higher than revenues during the same quarter of the prior year. This increase was mainly due to a greater number of large-scale events presented during the period, notably Roger Waters, The Black Eyed Peas, Camila y Miguel Bosé in Mexico, as well as the presentations of Cirque du Soleil s Quidam in Colombia. Revenues at CIE Las Américas increased 18 over the same period of the prior year, reaching Ps.1,180. The increase is a consequence of the combination of more visitors to the Books & Yaks gaming halls, and growth in the visitor s average expenditure in those halls. At the end of, there were 52 halls in operation, in comparison with 50 at the close of the prior year. CIE Commercial experienced a larger number of product launches and special events, which led its revenues to grow 1 to Ps The sale of parks in Mexico and radio frequencies in Argentina was finalized during the fourth quarter of, and in the month of January, respectively. As a result of these transactions and in compliance with current financial reporting standards in Mexico, for purposes of comparison, the results of both businesses were reclassified to a specific line on the income statement called discontinued operations, which is net of taxes. Without taking into consideration the mentioned criteria, and based on the fact that the numbers presented above are not comparable, the operation of Other Businesses in only includes the FOURTH QUARTER EARNINGS REPORT Page 2

3 results of Amusement Parks in Florida and Colombia, which recorded revenues higher than those reported in the same quarter of. EBITDA 4Q 4Q FY FY CIE Entertainment EBITDA Margin CIE Las Américas , EBITDA Margin CIE Commercial (15) EBITDA Margin Other Businesses 10 (29) N.A. 12 (55) N.A. EBITDA Margin 14.0 (90.8) 4.9 (38.0) CONSOLIDATED ,964 1, Margin EBITDA During the fourth quarter of, consolidated EBITDA was Ps. 632, which is 29 higher than the number reported in the same period of the prior year. Similarly, the EBITDA margin for the quarter increased to 19.8, compared with 17.3 in the same period of the prior year. EBITDA at CIE Entertainment increased by 24, totaling Ps The variation is the result of higher profitability of the aforementioned large-scale events, and advance ticket sales for shows that will take place in 2011 for artists such as U2, Luis Miguel and Iron Maiden, among others. During the period, CIE Las Américas reported EBITDA of Ps. 328, which is 26 higher than the number recorded in the same period of. This increase was due to higher revenues as explained above, and its impact on earnings, due to the composition of fixed and variable costs within the division, the majority of which are fixed. CIE Commercial s EBITDA increased 3 during the quarter to Ps This increase is attributable to the expansion in clients and special events marketed during the period. As with the revenues from Other Businesses, this division recorded higher EBITDA than the EBITDA reported in the same quarter of. FOURTH QUARTER EARNINGS REPORT Page 3

4 COMPREHENSIVE FINANCING RESULT ( CFR ) 4Q 4Q FY FY Interest Earned (Paid), Net (144) (193) 25 (547) (740) 26 Exchange Rate Gain (Loss), Net (9) (17) 46 (2) (16) 88 Other Financial Products (Costs), Net 0 (22) N.A. 0 (65) N.A. CFR (153) (232) 34 (549) (821) 33 The CFR decreased 34 during the fourth quarter, reaching (Ps. 153). This change is basically the combined effect of the following: a. Lower net interest paid, due to a decrease in the rates paid by the Company, and to a lesser extent, to a lower level of indebtedness. b. The cancellation of a hedge instrument that the Company had in, and that impacted Other Financial Expenses during that year. c. A decrease in the exchange rate loss due to the variation in exchange rates and the Company s positions in foreign currencies. INCOME TAXES During the quarter, tax provisions for income tax (ISR), the flat-rate corporate tax (IETU) incurred, and deferred income tax (ISR) totaled Ps. 148, which is higher than the number reported in the fourth quarter of, due to the higher earnings before taxes obtained during. OTHER (INCOME) EXPENSES In the fourth quarter of, the Company reported a negative impact of Ps. 521 from items that mostly did not require the use of cash, which is the case of the effect on the sales value of the radio business in Argentina, and application of Bulletin C-15. During the same period of, the FOURTH QUARTER EARNINGS REPORT Page 4

5 impact of Ps. 44 is mainly attributable to the write-off of some obsolete assets, and to other extraordinary expenses. NET INCOME Net income was Ps. 121 during the fourth quarter of, in comparison with a loss of Ps. 501 recorded in the same period of. MAJORITY NET RESULT During the quarter, there was a loss of Ps. 56 in the majority net result, compared with a loss of Ps. 370 in the same quarter of, which was a product of the net result attributable to third-party minority interest in some of the Group s businesses. TOTAL CONSOLIDATED DEBT During the period, the Company s total consolidated debt decreased 3 to Ps. 6,807, in comparison with Ps. 7,033 at the close of the prior year. The following tables show the debt profile at the end of the fourth quarter of and : Maturity Short Term Long Term 5, , TOTAL 6, , Currency Mexican pesos 5, , United States Dollars Colombian Pesos Euros TOTAL 6, , FOURTH QUARTER EARNINGS REPORT Page 5

6 ABOUT CIE Created in 1990, Corporación Interamericana de Entretenimiento, S.A.B. de C.V. (CIE), was a pioneer in the out of home entertainment industry in Latin America. Today, CIE is the main producer of live events in Latin America, and one of the leading companies in the gaming industry in Mexico. It is also one of the largest recipients of advertising investments in Mexico, through a commercial platform of advertising channels and spaces that reach segmented audiences. CIE is a public company whose shares have been listed on the Mexican Stock Exchange since 1995 under the symbol CIE. LEGAL DISCLAIMER As a precautionary note to the investing public, except for the historical information provided herein, certain subjects discussed in this document constitute forward-looking statements. These statements assume that there are risks and uncertainties, including the economic conditions in Mexico and other countries where CIE operates, as well as fluctuations in the value of the Mexican peso compared with the United States dollar. The use of registered trademarks or commercial trademarks in this document are exclusively for illustrative purposes and are not intended to violate copyrights and/or intellectual property laws applicable in the countries where CIE, its subsidiaries, and those companies with which CIE maintains commercial or business relationships, operate. CONTACT Investor Relations E: investor.relations@cie.com.mx T: (+5255) FOURTH QUARTER EARNINGS REPORT Page 6

7 CONSOLIDATED INCOME STATEMENT 4Q 4Q FY FY Net Sales 3,190 2, ,194 9, Cost of Sales 2,406 2, ,734 7,107 9 Gross Profit ,459 2, General Expenses (16) 1,367 1,356 1 Income from Operation , Comprehensive Financing Result Interest Income (Expense), Net (144) (193) 25 (547) (740) 26 Foreign Exchange Gain (Loss), Net (9) (17) 46 (2) (16) 88 Other Financial Products (Costs) 0 (22) N.A. 0 (65) N.A. CFR (153) (232) 34 (549) (821) 33 Result after CFR (0.0) N.A. Other Income (Expense), Net (92) (90) Income before Income Taxes 231 (471) N.A. 493 (521) N.A. Income Taxes Income after Income Taxes 83 (532) N.A. 69 (816) N.A. Equity in Affiliates Net Income (17) N.A. Extraordinary Items (Expenses), Net 0 88 N.A. 0 (77) N.A. Discontinued Operations 0 (68) N.A. 0 (47) N.A. Net Income 121 (501) N.A. 109 (957) N.A. Minority Interest 177 (131) N.A. 276 (146) N.A. Majority Net Result (56) (370) 85 (167) (811) 79 Depreciation and Amortization (1) EBITDA ,964 1, FOURTH QUARTER EARNINGS REPORT Page 7

8 CONSOLIDATED BALANCE SHEET Dec. 31 Dec. 31 Current Assets 6,917 7,328 (6) Cash 1,269 1,647 (23) Accounts Receivable, Net 2,072 1,893 9 Other Accounts Receivable, Net (23) Inventories (10) Other Current Assets 3,210 3,317 (3) Long-Term Assets (31) Accounts Receivable, Net (50) Investment on Unconsolidated Subsidiaries Net Fixed Assets 6,565 6,541 0 Property, Plant, and Equipment 10,517 10,002 5 Accumulated Depreciation 3,952 3, Deferred Assets, Net 1,337 1,444 (7) Other Assets (24) Total Assets 15,447 16,170 (4) Current Liabilities 3,658 3, Suppliers 1,129 1,641 (31) Short-Term Debt Taxes Payable (35) Other Current Liabilities 1,504 1, Long-Term Liabilities 6,033 7,138 (15) Long-Term Debt 5,848 6,722 (13) Other Credits (55) Deferred Liabilities Other Liabilities Total Liabilities 10,094 10,718 (6) Stockholders Equity 5,353 5,452 (2) Minority Shareholdings 2,456 2,399 2 Majority Stakeholders Equity 2,897 3,053 (5) Contributed Capital 4,148 4,148 0 Capital Earned (Lost) (1,251) (1,096) 14 Total Liabilities and Stockholders Equity 15,447 16,170 (4) FOURTH QUARTER EARNINGS REPORT Page 8