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Financial Results for the Third Quarter & Nine Months Ended September 30, 2009

CTC MEDIA (CTCM) - Today
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MOSCOW, Russia, November 5 /PRNewswire-FirstCall/ -- CTC Media, Inc. ("CTC Media" or the "Company") ( CTCM), Russia's leading independent media company, today announced its unaudited consolidated financial results for the third quarter and nine months ended September 30, 2009.

                                  Three Months               Nine Months
                               Ended September 30,       Ended September 30,
    (US$ 000's except per   2008     2009  Change      2008      2009  Change
    share data)
    Total operating
    revenues            $143,307 $106,935  -25.4%  $452,823  $325,607  -28.1%
    Total operating
    expenses             (92,222) (71,592) -22.4%  (278,671) (209,852) -24.7%
    OIBDA(1)              55,030   38,201  -30.6%   183,706   123,874  -32.6%
    OIBDA margin            38.4%    35.7%  -2.7%      40.6%     38.0%  -2.6%
    Net income
    attributable
    to CTC Media, Inc.
    stockholders          20,969   25,855   23.3%   111,498    79,502  -28.7%
    Diluted
    earnings
    per share              $0.13    $0.16   23.1%     $0.70     $0.51  -27.1%


    THIRD QUARTER FINANCIAL HIGHLIGHTS

    - Total revenues down 4% year-on-year in ruble terms

    - Russian advertising revenues down 4% year-on-year in ruble terms

    - Total operating expenses flat year-on-year in ruble terms

    - OIBDA of $38.2 million with an OIBDA margin of 35.7%

    - Net income of $25.9 million and fully diluted earnings per
      share of $0.16

    - Net cash position of $55.9 million

    THIRD QUARTER OPERATING HIGHLIGHTS

    - Average combined 4+ audience share in Russia up year-on-year to 13.6%
      from 13.2%

    - Target audience shares up year-on-year for all three Russian networks

    - CTC 6-54 audience share of 13.2% in September was at highest level
      since 2006

Anton Kudryashov, Chief Executive Officer of CTC Media, commented: "We continued to outperform the Russian television advertising market in the third quarter, with our Russian advertising sales declining by 4% year-on-year in ruble terms. Video International has estimated that the Russian television advertising market was down 21% year-on-year in the quarter, due to the impact of the ongoing economic crisis on advertising spending levels.

"Our increased investment in programming ahead of the highly competitive fall season proved successful and resulted in higher ratings in the third quarter for all three Russian networks. The CTC Network's target audience share rose to 13.2% in September, which is the highest monthly average since 2006. We were also able to effectively monetize this additional inventory with a sell-out ratio of 97% in the quarter and increased advertising market shares. Furthermore, we reduced our non-programming costs further year-on-year and were therefore able to maintain a flat cost base and deliver a healthy margin for the quarter.

    "We have continued to build on these target audience share gains in the
fourth quarter, albeit not at the exceptional levels achieved in the third
quarter. We therefore currently expect that our Russian advertising revenues
will be down by between 4% and 6% year-on-year in ruble terms for the full
year 2009, compared to the estimated television advertising market decline of
over 20%. Furthermore, we still expect our organic costs to be flat
year-on-year for the full year. We have significantly enhanced our
competitive market position in the year to date, but visibility continues to
be limited moving forward and we expect overall market conditions to remain
challenging in 2010."

    Operating Review

    Revenues(1)

                               Three Months                 Nine Months
                             Ended September 30,         Ended September 30,
    (US$ 000's)            2008      2009 Change       2008      2009 Change
    Operating
    revenues:
    CTC Network        $ 89,372   $68,409 -23.5%   $297,067  $210,618 -29.1%
    Domashny Network     13,305    10,521 -20.9%     44,976    31,972 -28.9%
    DTV Network          10,190     9,435  -7.4%     22,405    27,285  21.8%
    CTC Television
    Station Group        21,372    13,544 -36.6%     67,364    39,672 -41.1%
    Domashny
    Television
    Station Group         3,783     1,703 -55.0%     11,348     5,660 -50.1%
    DTV Station
    Television Group      1,531       794 -48.1%      3,335     2,582 -22.6%
    CIS Group             3,608     2,413 -33.1%      5,980     7,293  22.0%
    Production Group        146       116 -20.5%        348       525  50.9%
    Total operating
    revenues           $143,307  $106,935 -25.4%   $452,823  $325,607 -28.1%

Total operating revenues for the three months ended September 30, 2009 were down by 25% year-on-year in US dollar terms. The third quarter results in both 2008 and 2009 included full quarterly contributions from DTV Group in Russia and Channel 31 Group in Kazakhstan, which were both acquired in the first half of 2008.

The reported decline in revenues reflected the underlying weakness in the advertising markets, as well as the year-on-year depreciation of the Company's principal operating currency (the ruble) against the Company's reporting currency (the US dollar). The depreciation had a negative impact of approximately 22% on the Company's ruble-denominated sales. Advertising sales in Russia, which accounted for 95% of total third quarter revenues in both 2009 and 2008, were down 4% year-on-year in the third quarter in ruble terms.

The year-on-year development in advertising revenues for the Russian Television Station Groups once again reflected a sharp decline in the regional Russian advertising markets and was due to the weighting of spending by large advertisers towards national campaigns, resulting in significant decreases in regional advertising rates compared with national rates.

CIS Group revenues were down by 33% year-on-year in the third quarter of 2009 primarily due to the year-on-year depreciation of the Kazakh tenge against the US dollar, lower sell-out ratios and decreased audience shares, which were partially offset by increased advertising rates. Channel 31 generated over 90% of CIS Group revenues in the quarter.

    Share of Viewing in Target Demographics

                                      Average Audience Shares (%)
                                    Q3 2008    Q2 2009    Q3 2009

    CTC Network (all 6-54)             12.0       12.5       12.2
    Domashny Network (females 25-60)    2.8        2.9        3.2
    DTV Network (all 25-54)             2.1        2.4        2.3
    Channel 31 (all 6-54)              16.6       11.7       11.6

Each of the Russian networks delivered higher target audience shares in the third quarter and improvements year-on-year, which reflected a successful beginning to the new Fall season.

The increased ratings for the flagship CTC Network reflected the successful launch of the new Fall season programming. The target audience share in September averaged 13.2%, which was the highest monthly average since 2006. Major audience share drivers included the new seasons of the 'Daddy's Girls' sitcom and 'Ranetki' series, as well as the premier season of the'Margosha' series, which is based on the Argentine 'LaLola' format. All of these prime-time shows were produced in-house and gained audience shares above the average audience share for the channel. The broader programming schedule that included a number of locally produced premier shows and infotainment programs also supported the positive viewing share development.

Domashny's audience share also increased year-on-year from 2.8% to 3.2% due to the continued strong performance of re-runs of CTC hit series 'Born Not Pretty', which was supported by a successful line-up of movies and documentaries and enhanced weekend programming. The recently launched new season of 'Desperate Housewives' is also gradually increasing its share of viewing.

DTV has been focused on the 25-54 year-old target group since January 2009 and increased its viewing share in the third quarter following the continued success of locally produced 'Marital Fiction', as well as the late prime-time slots for Russian and foreign criminal investigation and action series. DTV continues to work on refining its channel positioning and introduced a number of locally produced short cycles of programs in various genres oriented towards the target demographic.

Channel 31 maintained its position as the second-most watched broadcaster in Kazakhstan in the third quarter, with a well-balanced mix of CTC-branded, international and locally produced Kazakh content.

    Expenses

                                Three Months                 Nine Months
                             Ended September 30,          Ended September 30,
    (US$ 000's)             2008      2009 Change       2008      2009 Change
    Operating
    expenses:
    Direct operating
    expenses             $10,312    $7,866 -23.7%    $27,308   $22,848 -16.3%
    Selling, general &
    administrative
    expenses              28,492    17,686 -37.9%     70,463    52,936 -24.9%
    Amortization of
    programming rights    48,007    42,580 -11.3%    164,229   120,878 -26.4%
    Amortization of
    sublicensing
    rights and own
    production cost        1,466       602 -58.9%      7,117     5,071 -28.7%
    Depreciation &
    amortization           3,945     2,858 -27.6%      9,554     8,119 -15.0%
    Total operating
    expenses             $92,222   $71,592 -22.4%   $278,671  $209,852 -24.7%

Total operating expenses for the three months ended September 30, 2009 were down 22% year-on-year in US dollar terms and included full quarterly contributions from DTV Group and Channel 31 Group in both 2008 and 2009. The reported decrease in expenses reflected the year-on-year depreciation of the Company's ruble and other operating currencies against the US dollar reporting currency while, in ruble terms, total operating expenditure was flat year-on-year.

Direct operating expenses were down 24% year-on-year in the third quarter in US dollar terms, while selling, general and administrative expenses were down 38%. Stock-based compensation expenses, most of which were allocated to selling, general and administrative expenses, were down year-on-year to $3.4 million in the third quarter of 2009 from $5.2 million in the same period of 2008.

Programming expenses decreased by 11% year-on-year and represented 39.8% of revenues, up from 33.5% in the third quarter of 2008. The year-on-year increase in programming costs as a percentage of revenue reflected a decreased top-line and a relatively more expensive programming mix in the third quarter of 2009 compared to the third quarter of 2008, which were partially offset by the effect of changes in certain content amortization rates from the beginning of 2009. Increased investment in programming was connected with the launch of the Fall season schedule, including new episodes of successful in-house produced series and sitcoms on the CTC Network, new local entertainment and infotainment shows and programs, and top quality international movies.

The amortization rates for certain types of Russian-produced programming were changed with effect from the beginning of 2009, in order better to reflect expected revenue generation patterns. These changes in the amortization policy resulted in a decrease in amortization expenses of $0.4 million during the third quarter of 2009 compared with the third quarter of 2008. Excluding the impact of these amortization policy changes, programming expenses were down 10% year-on-year in the third quarter in US dollar terms.

The 59% year-on-year decline in sublicensing and own production costs primarily reflected the lower cost of in-house produced series and sitcoms that were sold to third-party broadcasters in Ukraine. The decrease in costs was mainly due to the depreciation of the Russian ruble against the US dollar.

Consolidated OIBDA was therefore lower year-on-year at $38.2 million (Q3 2008: $55.0 million) and the OIBDA margin declined to 35.7% (Q3 2008: 38.4%).

Group depreciation and amortization charges decreased by 27.6% year-on-year to $2.9 million (Q3 2008: $3.9 million) in the third quarter, and consolidated operating income totaled $35.3 million (Q3 2008: $51.1 million).

The net interest expenses were down year-on-year by 85.7% to $0.6 million in the quarter (Q3 2008: $4.0 million) primarily due to partial repayments of principal amount of the Company's syndicated loan in December 2008 and June 2009.

The Company's pre-tax income amounted to $35.2 million (Q3 2008: $34.2 million) in the quarter. The effective tax rate decreased year-on-year in the third quarter to 26% (Q3 2008: 36%) mainly due to the decrease in statutory income tax rates in Russia (from 24% to 20%) and Kazakhstan (from 30% to 20%) from the beginning of 2009.

Consolidated net income attributable to CTC Media, Inc. stockholders therefore totaled $25.9 million (Q3 2008: $21.0 million) in the third quarter and fully diluted earnings per share amounted to $0.16 (Q3 2008: $0.13).

Cash Flow

The Company's net cash flow from operations totaled $75.7 million in the first nine months of 2009 (first nine months of 2008: $94.1 million) and reflected the net effect of lower advertising sales and lower spending for programming and sublicensing rights in the first half of 2009.

Cash used in investing activities totaled $23.9 million during the first nine months of 2009 (first nine months of 2008: $411.5 million) and included $11.0 million in payments related to the acquisitions of Costafilm and Soho Media, as well as purchases of equipment and software for the Company's new digital broadcasting center in Moscow. The investments in the first nine months of 2008 included the acquisition of DTV Group in Russia, Channel 31 Group in Kazakhstan, the Costafilm and Soho Media production companies in Russia, and a number of local owned-and-operated stations in Russia.

Cash used for financing activities amounted to $36.5 million for the first nine months of the year (first nine months of 2008: $55.5 million). This included a $33.8 million part repayment of a syndicated loan, which the Company drew down in July 2008 in order to finance the acquisition of DTV Group.

The Company's cash and cash equivalents amounted to $112.6 million at September 30, 2009, compared to $98.1 million at the end of 2008 and $54.3 million at September 30, 2008.

Borrowings

The Company's total borrowings and accrued interest amounted to $56.7 million (September 30, 2008: $124.6 million) at the end of the reporting period, compared to $90.6 million at the end of 2008. The Company therefore had a net cash position, which is defined as cash and cash equivalents less interest-bearing liabilities, of $55.9 million (September 30, 2008: net debt of $70.3 million) at the end of the reporting period, compared to a net cash position of $7.5 million at the end of 2008.

Conference Call

The Company will host a conference call to discuss its third quarter financial results today, Thursday, November 5, 2009, at 9:00 a.m. ET (5:00 p.m. Moscow time, 2:00 p.m. London time). To access the conference call, please dial +1-718-247-0884 (US/International) or +44(0)20-7806-1966 (UK/International). The pass code for the call is 7619644. A live webcast of the conference call will also be available via the investor relations section of the Company's corporate web site - http://www.ctcmedia.ru/investors. The webcast will also be archived on the Company's web site for two weeks.

Use of Non-GAAP Financial Measures

To supplement its consolidated financial statements, which are prepared and presented in accordance with US GAAP, the Company uses the following non-GAAP financial measures: OIBDA (on a consolidated and segment basis) and OIBDA margin. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the accompanying financial tables included at the end of this release.

The Company uses these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The Company believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding certain expenses that may not be indicative of its recurring core business operating results, meaning its operating performance excluding certain non-cash charges. These metrics are used by management to further its understanding of the Company's operating performance in the ordinary, ongoing and customary course of operations. The Company also believes that these metrics provide investors and equity analysts with a useful basis for analyzing operating performance against historical data and the results of comparable companies.

OIBDA and OIBDA margin. OIBDA is defined as operating income before depreciation and amortization (exclusive of amortization of programming rights and sublicensing rights). OIBDA margin is defined as OIBDA divided by total operating revenues. The most directly comparable GAAP measures to OIBDA and OIBDA margin are operating income and operating income margin, respectively. Unlike operating income, OIBDA excludes depreciation and amortization, other than amortization of programming rights and sublicensing rights. The purchase of programming rights is the Company's most significant expenditure that enables it to generate revenues, and OIBDA includes the impact of the amortization of these rights. Expenditures for capital items such as property, plant and equipment have a materially less significant impact on the Company's ability to generate revenues. For this reason, the Company excludes the related depreciation expense for these items from OIBDA. Moreover, a significant portion of its intangible assets were acquired in business acquisitions. The amortization of intangible assets is therefore also excluded from OIBDA.

About CTC Media, Inc.

CTC Media is a leading independent media company in Russia, with operations throughout Russia and elsewhere in the CIS. It operates three free-to-air television networks in Russia - CTC, Domashny and DTV, Channel 31 in Kazakhstan and TV companies in Uzbekistan and Moldova. The combined population of the countries in which CTC Media operates is over 180 million people. CTC Media also owns two TV content production companies, Costafilm and Soho Media. The Company's common stock is traded on The NASDAQ Global Select Market under the symbol "CTCM". For more information on CTC Media, please visit http://www.ctcmedia.ru.

Caution Concerning Forward Looking Statements

Certain statements in this press release that are not based on historical information are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, among others, statements regarding the potential impact of the current unfavorable macroeconomic environment globally and in Russia on the size of the Russian television advertising market, its impact on the Company's revenues, and the split of advertising sales between national and local markets. These statements reflect the Company's current expectations concerning future results and events. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of CTC Media to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

The potential risks and uncertainties that could cause actual future results to differ from those expressed by forward-looking statements include, among others, further depreciation of the value of the Russian ruble compared to the US dollar, changes in the size of the Russian television advertising market, particularly in light of the current economic instability in Russia and globally; the Company's ability to deliver audience share, particularly in primetime, to its advertisers; free-to-air television remaining a significant advertising forum in Russia; the Company's reliance on a single television advertising sales house for substantially all of its revenues; and restrictions on foreign involvement in the Russian television business. These and other risks are described in the "Risk Factors" section of CTC Media's quarterly report on Form 10-Q for the second quarter of 2009, filed with the SEC on August 6, 2009, which will be updated in the company's quarterly report on Form 10-Q for the third quarter of 2009, to be filed on November 5, 2009.

Other unknown or unpredictable factors could have material adverse effects on CTC Media's future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed herein may not occur. You are cautioned not to place undue reliance on these forward-looking statements. CTC Media does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.

                        CTC MEDIA, INC, AND SUBSIDIARIES
              UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                         AND COMPREHENSIVE INCOME (LOSS)
          (in thousands of US dollars, except share and per share data)

                               Three months ended         Nine months ended
                                  September 30,              September 30,
                                2008        2009         2008         2009
    REVENUES:
    Advertising            $ 139,469   $ 103,625     $ 440,245   $ 311,386
    Sublicensing and own
    production revenue         3,149       3,022        10,601      12,914
    Other revenue                689         288         1,977       1,307
    Total operating
    revenues                 143,307     106,935       452,823     325,607
    EXPENSES:
    Direct operating
    expenses (exclusive
    of amortization of
    programming rights
    and sublicensing
    rights, shown below,
    exclusive of
    depreciation and
    amortization of
    $3,147 and $2,453
    for the three months
    and $7,179 and
    $6,524 for the nine
    months ended
    September 30, 2008
    and 2009
    respectively; and
    inclusive of
    stock-based
    compensation of $213
    and $151 for the
    three months and
    $639 and $452 for
    the nine months
    ended September 30,
    2008 and 2009,
    respectively)            (10,312)     (7,866)      (27,308)    (22,848)
    Selling, general and
    administrative
    (exclusive of
    depreciation and
    amortization of $799
    and $406 for the
    three months and
    $2,375 and $1,596
    for the nine months
    ended September 30,
    2008 and 2009,
    respectively;
    inclusive of
    stock-based
    compensation of
    $4,959 and $3,228
    for the three months
    and $11,249 and
    $11,699 for the nine
    months ended
    September 30, 2008
    and 2009,
    respectively)            (28,492)    (17,686)      (70,463)    (52,936)
    Amortization of
    programming rights       (48,007)    (42,580)     (164,229)   (120,878)
    Amortization of
    sublicensing rights
    and own production
    cost                      (1,466)       (602)       (7,117)     (5,071)
    Depreciation and
    amortization
    (exclusive of
    amortization of
    programming rights
    and sublicensing
    rights)                   (3,945)     (2,858)       (9,554)     (8,119)
    Total operating
    expenses                 (92,222)    (71,592)     (278,671)   (209,852)
    OPERATING INCOME          51,085      35,343       174,152     115,755
    FOREIGN CURRENCY
    GAINS (LOSSES)           (13,978)        274       (11,772)     (4,462)
    INTEREST INCOME              288         725         5,255       2,494
    INTEREST EXPENSE          (4,249)     (1,290)       (6,508)     (5,704)
    OTHER NON-OPERATING
    INCOME (LOSSES), net         719         123           620          (5)
    EQUITY IN INCOME OF
    INVESTEE COMPANIES           319          74         1,064         309
    Income before income
    tax                       34,184      35,249       162,811     108,387
    INCOME TAX EXPENSE       (12,322)     (9,138)      (48,552)    (28,615)
    CONSOLIDATED NET
    INCOME                  $ 21,862    $ 26,111     $ 114,259    $ 79,772
    LESS: INCOME (LOSS)
    ATTRIBUTABLE TO
    NONCONTROLLING
    INTEREST                  $ (893)     $ (256)     $ (2,761)     $ (270)
    NET INCOME
    ATTRIBUTABLE TO CTC
    MEDIA, INC.
    STOCKHOLDERS            $ 20,969    $ 25,855     $ 111,498    $ 79,502
    Net income per share
    attributable to CTC
    Media, Inc.
    stockholders - basic      $ 0.14      $ 0.17        $ 0.73      $ 0.52
    Net income per share
    attributable to CTC
    Media, Inc.
    stockholders -
    diluted                   $ 0.13      $ 0.16        $ 0.70      $ 0.51
    Weighted average
    common shares
    outstanding - basic  152,155,213 152,155,213   152,143,653 152,155,213
    Weighted average
    common shares
    outstanding -
    diluted              158,212,439 157,770,126   158,945,038 157,361,626


                        CTC MEDIA, INC, AND SUBSIDIARIES
            UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                          (in thousands of US dollars)

                                             Nine months ended June 30,
                                                      2008      2009
    CASH FLOWS FROM OPERATING ACTIVITIES:
    Consolidated net income                      $ 114,259  $ 79,772
    Adjustments to reconcile net
    income to net cash provided by
    operating activities:
    Deferred tax benefit                           (12,504)   (2,958)
    Depreciation and amortization                    9,554     8,120
    Amortization of programming rights             164,229   120,878
    Amortization of sublicensing rights
    and own production cost                          7,117     5,071
    Stock based compensation expense                11,889    11,610
    Equity in income of unconsolidated
    investees                                       (1,064)     (309)
    Foreign currency (gains) losses                 11,772     4,462
    Changes in operating assets and
    liabilities:
    Trade accounts receivable                      (16,357)    1,320
    Prepayments                                       (419)      151
    Other assets                                      (125)    3,352
    Accounts payable and accrued
    liabilities                                      7,336     4,169
    Deferred revenue                                (1,568)   (6,021)
    Other liabilities                                4,839   (13,713)
    Dividends received from equity
    investees                                        1,335       522
    Acquisition of programming and
    sublicensing rights                           (206,234) (140,715)
    Net cash provided by operating
    activities                                      94,059    75,711
    CASH FLOWS FROM INVESTING ACTIVITIES:
    Acquisitions of property and
    equipment and intangible
    assets                                          (8,768)  (10,653)
    Acquisitions of businesses, net of
    cash acquired                                 (402,336)  (12,145)
    Other                                             (431)   (1,097)
    Net cash used in investing activities         (411,535)  (23,895)
    CASH FLOWS FROM FINANCING ACTIVITIES:
    Proceeds from exercise of stock options          1,811         -
    Proceeds from loans                            135,000         -
    Repayments of loans                            (76,443)  (33,750)
    (Incease) Decrease in restricted cash              (50)      121
    Dividends paid to minority interest             (4,855)   (2,832)
    Net cash provided by financing activities       55,463   (36,461)
    EFFECT OF EXCHANGE RATE CHANGES ON
    CASH AND CASH
    EQUIVALENTS                                      9,226      (799)
    Net increase (decrease) in cash and
    cash equivalents                              (252,787)   14,556
    CASH AND CASH EQUIVALENTS AT
    BEGINNING OF PERIOD                            307,073    98,055
    CASH AND CASH EQUIVALENTS AT
    END OF PERIOD                                 $ 54,286 $ 112,611

                        CTC MEDIA, INC, AND SUBSIDIARIES
                 UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
          (in thousands of US dollars, except share and per share data)

                                                        December   September
                                                       31,  2008    30, 2009
    ASSETS
    CURRENT ASSETS:
    Cash and cash equivalents                           $ 98,055   $ 112,611
    Trade accounts receivable, net of allowance for
    doubtful accounts (December 31, 2008 - $1,355;
    September 30, 2009 - $1,141)                          33,670      31,728
    Taxes reclaimable                                      8,171      10,971
    Prepayments                                           29,005      29,183
    Programming rights, net                               71,976      74,872
    Deferred tax assets                                   14,166      17,255
    Other current assets                                   7,720       5,392
    TOTAL CURRENT ASSETS                                 262,763     282,012
    RESTRICTED CASH                                          210          89
    PROPERTY AND EQUIPMENT, net                           22,722      20,666
    INTANGIBLE ASSETS, net:
    Broadcasting Licenses                                166,173     161,823
    Cable Network Connection                              25,205      28,863
    Trade names                                           17,587      17,172
    Network affiliation agreements                         9,214       7,365
    Other intangible assets                                1,244       1,085
    Net intangible assets                                219,423     216,308
    GOODWILL                                             223,027     216,181
    PROGRAMMING RIGHTS, net                               48,031      67,497
    SUBLICENSING RIGHTS, net                               1,221         625
    INVESTMENTS IN AND ADVANCES TO INVESTEES               5,311       4,949
    PREPAYMENTS                                            6,238       3,282
    DEFERRED TAX ASSET                                    15,154      18,763
    OTHER NON-CURRENT ASSETS                               2,729       8,344
    TOTAL ASSETS                                       $ 806,829   $ 838,716
    LIABILITIES AND STOCKHOLDERS' EQUITY
    CURRENT LIABILITIES:
    Accounts payable                                      41,025      56,485
    Accrued liabilities                                   41,573      29,578
    Taxes payable                                         30,154      13,880
    Short-term loans and interest accrued                 62,165      56,546
    Deferred revenue                                      14,683       5,869
    Deferred tax liability                                 2,778       2,916
    TOTAL CURRENT LIABILITIES                            192,378     165,274
    LONG-TERM LOANS                                       28,438         186
    DEFERRED TAX LIABILITY                                38,943      36,024
    STOCKHOLDERS' EQUITY:
    Common stock; $0.01 par value; shares authorized
    175,772,173;
    shares issued and outstanding December 31, 2008
    and September 30, 2009 - 152,155,213)                  1,522       1,522
    Additional paid-in capital                           365,362     376,975
    Retained earnings                                    232,321     311,823
    Accumulated other comprehensive loss                 (54,615)    (53,079)
    Non-controlling interest                               2,481          (9)
    TOTAL STOCKHOLDERS' EQUITY                           547,070     637,232
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY         $ 806,829   $ 838,716


                        CTC MEDIA, INC. AND SUBSIDIARIES
                     UNAUDITED SEGMENT FINANCIAL INFORMATION
                          (in thousands of US dollars)

                                    Three months ended September 30, 2008
                     Operating
                      revenue
                       from                 Operating Depreciation
                     external  Intersegment  income/      and
                     customers      revenue   (loss)   amortization   OIBDA
    CTC Network        $89,372         $456   $44,610       $(243)  $44,853
    Domashny Network    13,305            2     3,136        (164)    3,300
    DTV Network         10,190            3     4,123        (622)    4,745
    CTC Television      21,372          433    10,438        (559)   10,997
    Station Group
    Domashny             3,783          290       784        (677)    1,461
    Television
    Station Group
    DTV Television       1,531          170    (1,125)     (1,016)     (109)
    Station Group
    CIS Group            3,608            -    (1,023)       (268)     (755)
    Production Group       146        7,468      (410)         (6)     (404)
    Corporate Office         -            -    (9,812)       (389)   (9,423)
    Business segment
    results           $143,307       $8,822   $50,721     $(3,944)  $54,665
    Eliminations and
    other                    -       (8,822)      364          (1)      365
    Consolidated
    results           $143,307            -   $51,085     $(3,945)  $55,030


                                       Three months ended September 30, 2009
                    Operating
                     revenue
                      from                  Operating   Depreciation
                    external   Intersegment   income/      and
                    customers       revenue    (loss)   amortization   OIBDA
    CTC Network       $68,409          $490   $29,867        $(95)   $29,962
    Domashny           10,521            20     1,844         (72)     1,916
    Network
    DTV Network         9,435             -     3,014        (708)     3,722
    CTC Television     13,544           317     8,086        (515)     8,601
    Station Group
    Domashny            1,703           360      (157)       (348)       191
    Television
    Station Group
    DTV Television        794            49      (972)       (856)      (116)
    Station Group
    CIS Group           2,413             -    (1,067)       (177)      (890)
    Production            116        12,338     1,247         (40)     1,287
    Group
    Corporate               -             -    (6,534)        (77)    (6,457)
    Office
    Business         $106,935       $13,574   $35,328     $(2,888)   $38,216
    segment
    results
    Eliminations            -       (13,574)       15          30        (15)
    and other
    Consolidated     $106,935             -   $35,343     $(2,858)   $38,201
    results


          (Continued on the next page) CTC MEDIA, INC. AND SUBSIDIARIES
               UNAUDITED SEGMENT FINANCIAL INFORMATION (continued)
                          (in thousands of US dollars)

                                     Nine months ended September 30, 2008
                     Operating
                      revenue
                       from                 Operating  Depreciation
                     external  Intersegment  income/      and
                     customers      revenue   (loss)   amortization   OIBDA
    CTC Network       $297,067       $4,081  $143,767       $(752)  $144,519
    Domashny Network    44,976            9    10,870        (509)    11,379
    DTV Network         22,405            8     9,748        (897)    10,645
    CTC Television      67,364        1,364    39,966      (1,590)    41,556
    Station Group
    Domashny            11,348          815       820      (1,960)     2,780
    Television
    Station Group
    DTV Television       3,335          223    (1,755)     (1,729)       (26)
    Station Group
    CIS Group            5,980            -    (2,896)       (622)    (2,274)
    Production Group       348       22,096       253         (44)      297
    Corporate Office         -            -   (25,549)     (1,451)   (24,097)
    Business segment  $452,823      $28,596  $175,224     $(9,554)  $184,779
    results
    Eliminations and
    other                    -      (28,596)   (1,072)          -     (1,073)
    Consolidated
    results           $452,823            -  $174,152     $(9,554)  $183,706

                                      Nine months ended September 30, 2009
                     Operating
                      revenue
                       from                 Operating Depreciation
                     external  Intersegment  income/      and
                     customers   revenue     (loss)   amortization    OIBDA
    CTC Network       $210,618       $2,175   $99,560       $(318)  $99,878
    Domashny Network    31,972           30     7,780        (258)    8,038
    DTV Network         27,285            -    10,181      (1,922)   12,103
    CTC Television      39,672          921    23,707      (1,384)   25,091
    Station Group
    Domashny             5,660          970       286        (977)    1,263
    Television
    Station Group
    DTV Television       2,582          116    (2,943)     (2,390)     (553)
    Station Group
    CIS Group            7,293            -    (2,784)       (608)   (2,176)
    Production Group       525       32,506     2,838         (94)    2,932
    Corporate Office         -            -   (21,610)       (234)  (21,376)
    Business segment  $325,607      $36,718  $117,015     $(8,185) $125,200
    results
    Eliminations and
    other                    -      (36,718)   (1,260)         66    (1,326)
    Consolidated
    results           $325,607            -  $115,755     $(8,119) $123,874

                        CTC MEDIA, INC. AND SUBSIDIARIES
                     RECONCILIATION OF CONSOLIDATED OIBDA TO
                          CONSOLIDATED OPERATING INCOME
                          (in thousands of US dollars)

                                     Three months ended   Nine months ended
                                        September 30,       September 30,
                                       2008      2009      2008     __2009_

    OIBDA                           $55,030   $38,201  $183,706  $123,874
    Depreciation and amortization
    (exclusive of amortization of
    programming rights and
    sublicensing rights)           __(3,945) __(2,858) __(9,554) __(8,119)
    Operating income                $51,085   $35,343  $174,152  $115,755


                        CTC MEDIA, INC. AND SUBSIDIARIES
                 RECONCILIATION OF CONSOLIDATED OIBDA MARGIN TO
                      CONSOLIDATED OPERATING INCOME MARGIN

                                        Three months ended  Nine months ended
                                           September 30,      September 30,
                                          2008      2009      2008      2009

    OIBDA margin                          38.4%     35.7%     40.6%     38.0%
    Depreciation and amortization
    (exclusive of amortization of
    programming rights and sublicensing
    rights) as a percentage of total
    operating revenues                    -2.8%     -2.6%     -2.1%     -2.4%
    Operating income margin               35.6%     33.1%     38.5%     35.6%

                        CTC MEDIA, INC. AND SUBSIDIARIES
           RECONCILIATION OF SEGMENT OIBDA TO SEGMENT OPERATING INCOME
                          (in thousands of US dollars)
                               Three Months Ended September 30, 2008

                                           Depreciation
                                                    and
                                           amortization
                                          (exclusive of
                              OIBDA     amortization of       Operating
                                            programming          income
                                                rights,
                                           sublicensing
                                         rights and own
                                             production
                                                  cost)

    CTC Network             $44,853              $(243)         $44,610
    Domashny Network          3,300               (164)           3,136
    DTV Network               4,745               (622)           4,123
    CTC Television           10,997               (559)          10,438
    Station Group
    Domashny Television       1,461               (677)             784
    Station Group
    DTV Television             (109)            (1,016)          (1,125)
    Station Group
    CIS Group                  (755)              (268)          (1,023)
    Production Group           (404)                (6)            (410)
    Corporate                (9,423)              (389)          (9,812)

    Business Segment        $54,665            $(3,944)         $50,721
    Results
    Eliminations and
    Other                       365                 (1)             364
    Consolidated Results    $55,030            $(3,945)         $51,085


                               Three Months Ended September 30, 2009

                                           Depreciation
                                                    and
                                           amortization
                                          (exclusive of
                              OIBDA     amortization of       Operating
                                            programming          income
                                                rights,
                                           sublicensing
                                         rights and own
                                             production
                                                  cost)

    CTC Network             $29,962               $(95)         $29,867
    Domashny Network          1,916                (72)           1,844
    DTV Network               3,722               (708)           3,014
    CTC Television            8,601               (515)           8,086
    Station Group
    Domashny Television         191               (348)            (157)
    Station Group
    DTV Television             (116)              (856)            (972)
    Station Group
    CIS Group                  (890)              (177)          (1,067)
    Production Group          1,287                (40)           1,247
    Corporate                (6,456)               (78)          (6,534)

    Business Segment        $38,216            $(2,888)         $35,328
    Results
    Eliminations and
    Other                       (15)                30               15
    Consolidated Results    $38,201            $(2,858)         $35,343


                        CTC MEDIA, INC. AND SUBSIDIARIES
           RECONCILIATION OF SEGMENT OIBDA TO SEGMENT OPERATING INCOME
                                 (Continued)
                          (in thousands of US dollars)

                            Nine Months Ended September 30, 2008

                                         Depreciation
                                                  and
                                         amortization
                                        (exclusive of
                                         amortization
                                       of programming
                                           rights and
                                         sublicensing
                             OIBDA            rights) Operating income

    CTC Network           $144,519             $(752)         $143,767
    Domashny Network        11,379              (509)           10,870
    DTV Network             10,645              (897)            9,748
    CTC Television          41,556            (1,590)           39,966
    Station Group
    Domashny                 2,780            (1,960)              820
    Television Station
    Group
    DTV Television             (26)           (1,729)           (1,755)
    Station Group
    CIS Group               (2,274)             (622)           (2,896)
    Production Group           297               (44)              253
    Corporate              (24,097)           (1,451)          (25,549)

    Business Segment      $184,779           $(9,554)         $175,224
    Results
    Eliminations and
    Other                   (1,073)                -            (1,072)
    Consolidated          $183,706           $(9,554)         $174,152
    Results


                              Nine Months Ended September 30, 2009

                                         Depreciation
                                                  and
                                         amortization
                                        (exclusive of
                             OIBDA       amortization Operating income
                                       of programming
                                           rights and
                                         sublicensing
                                              rights)

    CTC Network            $99,878             $(318)          $99,560
    Domashny Network         8,038              (258)            7,780
    DTV Network             12,103            (1,922)           10,181
    CTC Television          25,091            (1,384)           23,707
    Station Group
    Domashny                 1,263              (977)              286
    Television Station
    Group
    DTV Television            (553)           (2,390)           (2,943)
    Station Group
    CIS Group               (2,176)             (608)           (2,784)
    Production Group         2,932               (94)            2,838
    Corporate              (21,376)             (234)          (21,610)

    Business Segment      $125,200           $(8,185)         $117,015
    Results
    Eliminations and        (1,326)               66            (1,260)
    Other
    Consolidated          $123,874           $(8,119)         $115,755
    Results

    ---------------------------------

(1) OIBDA is defined as operating income before depreciation and amortization (excluding the amortization of programming rights and sublicensing rights). OIBDA margin is defined as OIBDA divided by total operating revenues. Both OIBDA and OIBDA margin are non-GAAP financial measures. Please see the accompanying financial tables at the end of this release for a reconciliation of OIBDA to operating income and OIBDA margin to operating margin.

(1) Segment revenues are shown from external customers only, net of intercompany revenues of $8.8 million in the third quarter of 2008, $13.6 million in the third quarter of 2009, $28.6 million in the first nine months of 2008, and $36.7 million in the first nine months of 2009, most of which related to revenues from the Production Group that have been eliminated in the consolidation of the Company's revenues.

    For further information, please visit http://

SOURCE CTC Media, Inc


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