Spanish Broadcasting System Revenues, OIBDA Increase For Fourth Quarter As Shareholder Dispute Continues

Q4

SPANISH BROADCASTING SYSTEM fourth quarter 2018 consolidated net revenues rose 9% to $39.645 million, and radio revenue jumped 16% to $35.614 million, resulting in Adjusted OIBDA up 25% overall to $17.38 million and radio Adjusted OIBDA rising 38% to $18.172 million.  Despite the cheery revenue news, SBS also reported that it did not repay its outstanding 12.5% Senior Secured Notes due 2017 when they became due TODAY (4/1) and is evaluating refinancing options while paying monthly interest only, a move that prompted a shareholder lawsuit in DELAWARE over what the plaintiffs allege is foreign ownership of SBS Series B Preferred stock and has cast a cloud over the company's prospects for a consensual restructuring.

"Our fourth quarter and full year 2018 performance represent one of the best operating results in our 35-year history and the true power of our multi-media strategy and leading radio, television, digital and experiential assets," said Chairman/CEO RAÚL ALARCÓN. "Our multi-year effort to transform our company from a traditional broadcaster into an integrated multi-media company is clearly evident in our financial results.

"This past year we generated solid top-line growth while also prudently managing our costs, which resulted in consolidated Adjusted OIBDA growth of 37%. We believe this operating margin performance significantly outperformed both our Spanish- and English-language peers. In addition to this industry-leading performance, our audio rankings, as well as our TV, digital and mobile engagement metrics, also grew significantly.

"We entered 2019 with significant momentum in our business, a strong management team, a clear and unambiguous operating strategy, and a 100% commitment to taking the next critical steps in furthering our business transformation.

"Looking ahead, we are focused on building on our successes to date and driving further strong performance in 2019 and beyond. Our key priorities include further integration of our assets, prudently managing our costs and delivering sustainable growth across all our businesses."

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