NEW YORK--(BUSINESS WIRE)--Univision Communications Inc., (the “Company”) the leading media company serving Hispanic America, today announced preliminary financial data for the quarter ended March 31, 2015. The Company currently estimates net revenue for the quarter ended March 31, 2015 in the range of approximately $616.0 to $626.0 million (as compared to $621.1 million for the same period in 2014) and adjusted operating income before depreciation and amortization (“OIBDA”) for the quarter ended March 31, 2015 in the range of approximately $270.0 to $275.0 million (as compared to $251.4 million for the same period in 2014).
The Company uses the key indicator of OIBDA to evaluate the Company’s operating performance and for planning and forecasting future business operations. OIBDA is commonly used as a measure of performance for broadcast companies and provides investors the opportunity to evaluate the Company’s performance as it is viewed by management. In addition, OIBDA is used by investors to measure a company’s ability to service its debt and meet its other cash needs. OIBDA, as disclosed above, is determined in accordance with the definition of earnings before interest, taxes, depreciation and amortization (“EBITDA”) in the Company’s senior secured credit facilities and the indentures governing the Company’s senior notes, except that OIBDA from redesignated restricted subsidiaries as presented above only includes their results since the beginning of the quarter in which they were redesignated as restricted.
OIBDA is not, and should not be used as, an indicator of or alternative to operating income (loss) or net income (loss) as reflected in the Company’s consolidated financial statements. It is not a measure of financial performance under accounting principles generally accepted in the United States (“GAAP”) and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Since the definition of OIBDA may vary among companies and industries, it should not be used as a measure of performance among companies.
The above historical financial data are preliminary, based upon the Company’s estimates and subject to completion of its financial closing procedures. Moreover, these data have been prepared on the basis of currently available information by, and are the responsibility of, management. The Company’s independent auditors, Ernst & Young LLP, have not audited or reviewed, and do not express an opinion with respect to, these data. Management believes that such preliminary historical financial data have been estimated on a reasonable basis. However, because currently available information is preliminary, such estimates should not be relied on as necessarily indicative of the Company’s financial results for the quarter ended March 31, 2015. This summary is not a comprehensive statement of the Company’s financial results for the quarter ended March 31, 2015 and its actual results may differ materially from these estimates due to the completion of the Company’s financial closing procedures, final adjustments and other developments that may arise between now and the time the financial results for this period are finalized. The Company plans to release its financial information for the quarter ended March 31, 2015 on or about April 29, 2015.
About Univision Communications Inc.
Univision Communications Inc. (UCI) is the leading media company serving Hispanic America. The Company, a leading content creator in the U.S., includes Univision Network, one of the top five networks in the U.S. regardless of language and the most-watched Spanish-language broadcast television network in the country reaching approximately 93% of U.S. Hispanic television households; UniMás, a leading Spanish-language broadcast television network reaching approximately 87% of U.S. Hispanic television households; Univision Cable Networks, including Galavisión, the country’s leading Spanish-language cable network, as well as Univision tlnovelas, a 24-hour cable network dedicated to novelas, Univision Deportes Network, a 24-hour cable network dedicated to sports, ForoTV, a 24-hour Spanish-language cable network dedicated to news, and an additional suite of cable offerings - De Película, De Película Clásico, Bandamax, Ritmoson and Telehit; Univision Television Group, which owns and/or operates 61 television stations in major U.S. Hispanic markets and Puerto Rico; Univision Radio, the leading Hispanic radio group which owns and operates 67 radio stations in 16 of the top 25 U.S. Hispanic markets and Puerto Rico; an Interactive network of online and mobile apps and products including UVideos, a bilingual digital video network serving Hispanic America, Uforia, a music application featuring multimedia music content, including over 65 radio stations, exclusive digital channels and a custom radio offering with more than 25 million songs, Univision.com, the No. 1 most-visited Spanish-language website among U.S. online Hispanics, and Univision Partner Group, a specialized advertising and publisher network. UCI’s assets also include a minority stake in El Rey Network, a 24-hour English-language network founded by maverick filmmaker Robert Rodriguez, and a joint venture with Disney/ABC Television Network for Fusion, a news, pop culture and satire TV and digital network. Headquartered in New York City, UCI has television network operations in Miami and television and radio stations and sales offices in major cities throughout the United States. For more information, please visit www.Univision.net.
Certain statements contained within this press release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases you can identify forward looking statements by terms such as “anticipate,” “plan,” “may,” “intend,” “will,” “expect,” “believe” or the negative of these terms, and similar expressions intended to identify forward-looking statements.
These forward-looking statements reflect our current views with respect to future events and are based on assumptions and are subject to risks and uncertainties. Also, these forward-looking statements present our estimates and assumptions only as of the date of this press release. We undertake no obligation to modify or revise any forward-looking statements to reflect events or circumstances occurring after the date that the forward looking statement was made.
Factors that could cause actual results to differ materially from those expressed or implied by the forward looking statements include: adjustments to the Company’s preliminary results arising from the completion of the Company’s financial closing procedures, final adjustments and other developments that may arise between now and the time the financial results are finalized; the Company’s failure to service the Company’s debt or inability to comply with the agreements contained in the Company’s senior secured credit facilities and the Company’s indentures, including any financial covenants and ratios; net losses in the future and for an extended period of time; cancellation, reductions or postponements of advertising or other changes in advertising practices among the Company’s advertisers; any impact of adverse economic conditions on the Company’s business and financial condition, including reduced advertising revenue; changes in the size of the U.S. Hispanic population, including the impact of federal and state immigration legislation and policies on both the U.S. Hispanic population and persons emigrating from Latin America; a decrease in the preference among Hispanics for Spanish-language programming; changes impacting the markets where the U.S. Hispanic population is concentrated geographically; lack of audience acceptance of the Company’s content; varying popularity for programming, which the Company cannot predict at the time it may incur related costs; the failure to renew existing agreements or reach new agreements with multichannel video programming distributors (“MVPDs”) on acceptable subscription or “retransmission consent” terms; consolidation in the cable or satellite MVPD industry; the impact of increased competition from new technologies; exploitation of the Company’s over-the-air signals and other intellectual property by third parties without compensating it; competitive pressures from other broadcasters and other entertainment and news media; damage to the Company’s brands or reputation; fluctuations in the Company’s quarterly results, making it difficult to rely on period-to-period comparisons; an increase in the cost of the Company’s programming; a decrease in the supply or quality of the Company’s programming; failure to retain the rights to sports programming to attract advertising revenue; an increase in royalty payments pursuant to the PLA; the loss of the Company’s ability to rely on Grupo Televisa, S.A.B. and its affiliates (“Televisa”) for a significant amount of the Company’s network programming; the failure of the Company’s new or existing businesses to produce projected revenues or cash flows; failure to monetize the Company’s content on the Company’s digital platforms; the failure or destruction of satellites or transmitter facilities that the Company depends upon to distribute its programming; disruption of the Company’s business due to network and information systems-related events, such as computer hackings, viruses, or other destructive or disruptive software or activities; inability to realize the full value of the Company’s intangible assets; possible strikes or other union job actions; piracy of the Company’s programming and other content; changes in the rules and regulations of the Federal Communications Commission (“FCC”); increased enforcement or enhancement of FCC indecency and other programming content rules; the impact of new legislation on the reallocation of broadcast spectrum which may result in additional costs and affect the Company’s ability to provide competitive services; the need for any unanticipated expenses; write downs of the carrying value of assets due to impairment; adverse conditions in the capital markets; and the Company’s inability to secure financing on suitable terms or at all.
Actual results may differ materially due to these risks and uncertainties. The Company assumes no obligation to update forward-looking information contained in this press release.