SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTER ENDED MARCH 31, 1998
COMMISSION FILE NUMBER 0-16099
TELEMUNDO GROUP, INC.
----------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 13-3348686
- -------------------------------------- ------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2290 WEST 8TH AVENUE
HIALEAH, FLORIDA 33010
- --------------------------------------- ---------
(Address of principal executive offices) (Zip Code)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (305) 884-8200
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes [X] No [ ]
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Section 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court. Yes [X] No [ ]
As of May 12, 1998, 10,267,325 shares of Common Stock of Telemundo Group,
Inc. were outstanding.
<PAGE>
TELEMUNDO GROUP, INC. AND SUBSIDIARIES
INDEX
PAGE
PART I. FINANCIAL INFORMATION: NO.
----
ITEM 1. FINANCIAL STATEMENTS
Consolidated Statements of Operations for the Three Months
Ended March 31, 1998 and 1997 (Unaudited)......................... 2
Consolidated Balance Sheets at March 31, 1998 (Unaudited)
and December 31, 1997............................................. 3
Consolidated Statement of Changes in Common Stockholders' Equity
for the Three Months Ended March 31, 1998 (Unaudited)............. 4
Consolidated Statements of Cash Flows for the Three Months
Ended March 31, 1998 and 1997 (Unaudited)......................... 5
Notes to Consolidated Financial Statements (Unaudited)............... 6
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF
OPERATIONS AND FINANCIAL CONDITION........................... 8
PART II. OTHER INFORMATION, AS APPLICABLE.............................. 12
SIGNATURES.............................................................. 13
1
<PAGE>
<TABLE>
<CAPTION>
TELEMUNDO GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
THREE MONTHS ENDED MARCH 31 1998 1997
- -----------------------------------------------------------------------------------
<S> <C> <C>
Net revenue .................................... $ 44,606,000 $ 39,100,000
------------ ------------
Costs and expenses:
Direct operating costs ..................... 26,411,000 24,078,000
Selling, general and administrative expenses
other than network and corporate ........ 9,942,000 9,788,000
Network expenses ........................... 7,211,000 5,936,000
Corporate expenses ......................... 1,620,000 1,062,000
Depreciation and amortization .............. 3,598,000 3,490,000
------------ ------------
48,782,000 44,354,000
------------ ------------
Operating loss ................................. (4,176,000) (5,254,000)
Merger related expenses ........................ (1,517,000) --
Interest expense - net ......................... (5,328,000) (5,004,000)
------------ ------------
Loss before income taxes and minority interest . (11,021,000) (10,258,000)
Income tax provision ........................... (1,165,000) (1,097,000)
Minority interest .............................. (771,000) (702,000)
------------ ------------
Net loss ....................................... $(12,957,000) $(12,057,000)
============ ============
Basic net loss per share ....................... $ (1.26) $ (1.19)
============ ============
Weighted average shares outstanding ............ 10,251,000 10,156,000
============ ============
</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2
<PAGE>
<TABLE>
<CAPTION>
TELEMUNDO GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
MARCH 31 DECEMBER 31
ASSETS 1998 1997
- -----------------------------------------------------------------------------------------------------
(Unaudited)
<S> <C> <C>
Current assets:
Cash and cash equivalents .......................... $ 5,673,000 $ 2,378,000
Accounts receivable, less allowance for doubtful
accounts of $7,923,000 and $7,583,000 ............ 42,393,000 54,155,000
Television programming ............................. 16,836,000 15,154,000
Prepaid expenses and other ......................... 8,927,000 9,287,000
------------- -------------
Total current assets ...................... 73,829,000 80,974,000
Property and equipment, net ............................ 66,584,000 66,602,000
Television programming ................................. 6,144,000 6,779,000
Other assets ........................................... 6,898,000 7,365,000
Broadcast licenses and reorganization value in excess of
amounts allocable to identifiable assets, net ...... 127,250,000 128,366,000
------------- -------------
$ 280,705,000 $ 290,086,000
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
- ---------------------------------------------------------------------------------------------
Current liabilities:
Accounts payable ................................... $ 11,712,000 $ 7,726,000
Accrued expenses and other ......................... 16,424,000 22,761,000
Television programming obligations ................. 6,970,000 5,911,000
------------- -------------
Total current liabilities .................. 35,106,000 36,398,000
Long-term debt ......................................... 192,768,000 189,081,000
Capital lease obligations .............................. 4,876,000 5,120,000
Television programming obligations ..................... 377,000 399,000
Other liabilities ...................................... 24,923,000 23,845,000
------------- -------------
258,050,000 254,843,000
------------- -------------
Minority interest ...................................... 5,357,000 5,334,000
------------- -------------
Contingencies and commitments
Common stockholders' equity:
Series A Common Stock, $.01 par value, 14,388,394
shares authorized, 7,180,781 and 7,129,614 shares
outstanding at March 31, 1998 and December 31, 1997 72,000 71,000
Series B Common Stock, $.01 par value, 5,611,606
shares authorized, 3,086,498 and 3,088,341 shares
outstanding at March 31, 1998 and December 31, 1997 31,000 31,000
Additional paid-in capital ............................. 72,106,000 71,761,000
Accumulated deficit .................................... (54,911,000) (41,954,000)
------------- -------------
17,298,000 29,909,000
------------- -------------
$ 280,705,000 $ 290,086,000
============= =============
</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
3
<PAGE>
<TABLE>
<CAPTION>
TELEMUNDO GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN COMMON STOCKHOLDERS' EQUITY (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
NUMBER OF SHARES
OUTSTANDING COMMON STOCK
-------------------- --------------------
SERIES A SERIES B SERIES A SERIES B ADDITIONAL COMMON
COMMON COMMON COMMON COMMON PAID-IN ACCUMULATED STOCKHOLDERS'
STOCK STOCK STOCK STOCK CAPITAL DEFICIT EQUITY
--------- --------- ---------- -------- ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance, December 31, 1997 7,129,614 3,088,341 $ 71,000 $ 31,000 $ 71,761,000 $(41,954,000) $ 29,909,000
Net loss ................. -- -- -- -- -- (12,957,000) (12,957,000)
Warrant conversions ...... 49,324 -- 1,000 -- 345,000 -- 346,000
Stock conversions ........ 1,843 (1,843) -- -- -- -- --
--------- --------- -------- -------- ------------ ------------ ------------
Balance, March 31, 1998 . 7,180,781 3,086,498 $ 72,000 $ 31,000 $ 72,106,000 $(54,911,000) $ 17,298,000
========= ========= ======== ======== ============ ============ ============
</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
4
<PAGE>
<TABLE>
<CAPTION>
TELEMUNDO GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
THREE MONTHS ENDED MARCH 31 1998 1997
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss ..................................................... $(12,957,000) $(12,057,000)
Charges not affecting cash:
Depreciation and amortization ............................ 3,598,000 3,490,000
Interest accretion ....................................... 1,460,000 1,323,000
Minority interest ........................................ 771,000 702,000
Changes in assets and liabilities:
Accounts receivable ...................................... 11,762,000 12,423,000
Television programming ................................... (1,047,000) 159,000
Television programming obligations ....................... 1,037,000 (557,000)
Accounts payable and accrued expenses and other .......... (519,000) (11,416,000)
------------ ------------
Cash flows provided from (used in) operating
activities ............................................. 4,105,000 (5,933,000)
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITY:
Additions to property and equipment .......................... (2,464,000) (3,733,000)
------------ ------------
Cash flows used in investing activity .................. (2,464,000) (3,733,000)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of warrants ........................... 346,000 94,000
Payments of obligations under capital leases ................. (171,000) (177,000)
Borrowings under credit facility ............................. 5,227,000 125,000
Payments under credit facility ............................... (3,000,000) (25,000)
Payments to minority interest partner ........................ (748,000) (680,000)
Other ........................................................ -- (220,000)
------------ ------------
Cash flows provided from (used in) financing activities 1,654,000 (883,000)
------------ ------------
Increase (decrease) in cash and cash equivalents ............. 3,295,000 (10,549,000)
Cash and cash equivalents, beginning of period ............... 2,378,000 12,587,000
------------ ------------
Cash and cash equivalents, end of period ..................... $ 5,673,000 $ 2,038,000
============ ============
Supplemental cash flow information:
Interest paid ............................................ $ 6,910,000 $ 6,745,000
============ ============
Income taxes paid, including Puerto Rico withholding taxes $ 78,000 $ 796,000
============ ============
</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
5
<PAGE>
TELEMUNDO GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
- -------------------------------------------------------------------------------
1. UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
In the opinion of management, the accompanying unaudited consolidated financial
statements of Telemundo Group, Inc. and subsidiaries (collectively "Telemundo"
or the "Company") include all adjustments (consisting of normal recurring
accruals only) necessary to present fairly the Company's financial position at
March 31, 1998, and the results of operations and cash flows for all periods
presented. The results of operations for interim periods are not necessarily
indicative of the results to be obtained for the entire year.
For a summary of significant accounting policies, which have not changed from
December 31, 1997, and additional financial information, see the Company's
Annual Report on Form 10-K for the year ended December 31, 1997.
2. BASIC NET LOSS PER SHARE
Basic net loss per share for the three months ended March 31, 1998 and 1997 is
calculated by dividing the net loss by the weighted average number of shares
outstanding during the period. Basic earnings per share excludes any dilutive
effects of stock options, warrants and convertible securities. Diluted earnings
per share is not presented as the effect of the 1,971,305 stock options and
warrants is anti-dilutive.
3. PROPOSED MERGER TRANSACTION
On November 24, 1997 the Company announced that it had entered into a definitive
agreement with a venture to be formed by Sony Pictures Entertainment Inc.,
Liberty Media Corporation, Apollo Investment Fund III, L.P. and Bastion Capital
Fund, L.P. (such venture, the "Purchaser") pursuant to which the Purchaser will
acquire all of the common stock of the Company in a cash merger transaction (the
"Merger") for $44 per share, plus, subject to certain conditions, an additional
amount if the Merger is not completed by July 30, 1998. The proposed
transaction, which is expected to close in the summer of 1998, is subject to the
approval of Company stockholders of record as of May 12, 1998 at a special
meeting of such stockholders to be held on June 16, 1998, approval of the
Federal Communications Commission, the expiration of the waiting period under
the Hart-Scott-Rodino Antitrust Improvements Act ("HSR") (notice of early
termination of all applicable HSR waiting periods has been received), as well as
the receipt by the Purchaser of the financing required to consummate the Merger
(the Purchaser has received commitments from financial institutions and its
stockholders in an amount sufficient to fund the Merger). As a result of the
various conditions to the completion of the Merger, there can be no assurance
that the Merger will be consummated.
In November 1997 after the announcement of the Merger, the Company and its
directors were named as defendants in six purported class actions filed on
behalf of Telemundo's public stockholders. The suits are virtually identical and
allege that Telemundo and its directors violated fiduciary duties owed to
Telemundo's public stockholders by entering into the merger agreement with the
Purchaser. The Company's board of directors, relying upon the unanimous
recommendation of a special committee of the board of directors comprised of
directors who have no financial interest in the Purchaser or its
6
<PAGE>
TELEMUNDO GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- -------------------------------------------------------------------------------
affiliates, has determined that the Merger is fair to and in the best interests
of the Company's public stockholders. The Company and its directors intend to
vigorously defend the lawsuits, and believe that the outcome of the suits will
not have a material adverse effect on the Company's consolidated financial
statements.
7
<PAGE>
TELEMUNDO GROUP, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
AND FINANCIAL CONDITION
- -------------------------------------------------------------------------------
INTRODUCTION
Telemundo Group, Inc., together with its subsidiaries (collectively, "Telemundo"
or the "Company"), is one of two Spanish-language television broadcast networks
in the United States. The network provides programming 24-hours per day to its
owned and operated stations and affiliates, which serve 61 markets in the
continental United States, including the 37 largest Hispanic markets, and
reaches approximately 85% of all U.S. Hispanic households. The Company also owns
and operates the leading full-power television station and related production
facilities in Puerto Rico. The Company produces Spanish-language programming for
use on its network and for sale in foreign countries and sells advertising time
on behalf of its owned and operated television stations and affiliates.
Seasonal revenue fluctuations are common in the television broadcasting industry
and the Company's revenue, particularly in Puerto Rico, reflects seasonal
patterns with respect to advertiser expenditures. The first quarter generally
produces the lowest level of revenue due to the reduced demand for advertising
time. Because costs are more ratably spread throughout the year, the impact of
this seasonality on operating income is more pronounced during the first
quarter.
The following discussion and analysis of financial condition and results of
operations should be read in conjunction with the Company's unaudited
consolidated financial statements and related notes. Except for historical
information contained herein, certain matters discussed are forward looking
disclosures that involve risks and uncertainties, including (without limitation)
those risks associated with the effect of economic conditions; the Company's
outstanding indebtedness and leverage; restrictions imposed by the terms of the
Company's indebtedness; changes in advertising revenue which are caused by
changes in national and local economic conditions, the relative popularity of
the Company's programming, the demographic characteristics of the Company's
markets and other factors outside the Company's control; future capital
requirements; the impact of competition, including its impact on market share
and advertising revenue in each of the Company's markets; the loss of key
employees; the modification or termination of network affiliation agreements;
the availability of cost-effective programming; the impact of litigation; the
impact of current or pending legislation and regulations, including Federal
Communications Commission ("FCC") rulemaking proceedings; and other factors
which may be described from time to time in filings of the Company with the
Securities and Exchange Commission.
PROPOSED MERGER TRANSACTION
On July 17, 1997 the Company announced the retention of the investment banking
firm Lazard Freres & Co. LLC ("Lazard") to assist the Company in pursuing
discussions with potential strategic programming partners for purposes of
expanding its programming options and enhancing stockholder value. Lazard
contacted a number of parties whom it had identified as likely to have an
interest in a potential transaction with the Company, and over the next several
months information was exchanged with these parties, discussions with Company
management took place and negotiations with the Company's advisors ultimately
ensued. On November 24, 1997 the Company announced that it had entered into a
definitive agreement with a venture formed by Sony Pictures Entertainment Inc.,
Liberty Media Corporation, Apollo Investment Fund III, L.P. and Bastion Capital
Fund, L.P. (such venture,
8
<PAGE>
TELEMUNDO GROUP, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF
OPERATIONS AND FINANCIAL CONDITION (CONTINUED)
- -------------------------------------------------------------------------------
the "Purchaser") pursuant to which the Purchaser will acquire all of the common
stock of the Company in a cash merger transaction (the "Merger") for $44 per
share, plus, subject to certain conditions, an additional amount if the Merger
is not completed by July 30, 1998. The proposed transaction, which is expected
to close in the summer of 1998, is subject to the approval of Company
stockholders of record as of May 12, 1998 at a special meeting of such
stockholders to be held on June 16, 1998, approval of the FCC, the expiration of
the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act
("HSR") (notice of early termination of all applicable HSR waiting periods has
been received), as well as the receipt by the Purchaser of the financing
required to consummate the Merger (the Purchaser has received commitments from
financial institutions and its stockholders in an amount sufficient to fund the
Merger). As a result of the various conditions to the completion of the Merger,
there can be no assurance that the Merger will be consummated.
Under certain circumstances, the Company may terminate the Merger and accept a
proposal determined by its Board of Directors to be superior, from a financial
point of view to the stockholders of the Company (other than stockholders
affiliated with the Purchaser or their affiliates), to the Merger, subject to
the payment of a termination fee of $15 million to the Purchaser and the
reimbursement of up to an aggregate of $2.5 million in expenses incurred by the
Purchaser in connection with the Merger. The Purchaser will be required to pay a
termination fee of $17.5 million to the Company if, solely as a result of the
failure of the Purchaser to obtain an FCC order regarding the transfer of the
Company's broadcast licenses which is satisfactory to the Purchaser, the Merger
has not been consummated on or before December 31, 1998 and the Merger is at
such time or thereafter terminated by either the Company or the Purchaser.
RESULTS OF OPERATIONS
Net revenue for the three months ended March 31, 1998 as compared to the
corresponding period of 1997 was as follows:
THREE MONTHS ENDED
MARCH 31
-------------------
1998 1997 CHANGE
---- ---- ------
Net Commercial Air Time:
Continental U.S.:
Network and National Spot.. $19,734,000 $15,553,000 27%
Local...................... 9,907,000 9,447,000 5%
----------- -----------
29,641,000 25,000,000 19%
Puerto Rico................ 7,985,000 7,524,000 6%
----------- -----------
37,626,000 32,524,000 16%
Other.......................... 6,980,000 6,576,000 6%
----------- -----------
$44,606,000 $39,100,000 14%
=========== ===========
The increase in network and national spot revenue is the result of the continued
growth in the overall Spanish-language television market, offset in part by a
decline in average audience shares. The Company's average share of the weekday
Spanish-language television network audience was 18%
9
<PAGE>
TELEMUNDO GROUP, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF
OPERATIONS AND FINANCIAL CONDITION (CONTINUED)
- -------------------------------------------------------------------------------
during the fourth quarter of 1997 and 16% during the first quarter of 1998,
compared to 21% during the fourth quarter of 1996 and 18% during the first
quarter of 1997. A change in audience share typically has a delayed effect on
revenue.
The increase in local revenue is primarily the result of an increase at KVEA-Los
Angeles, related to growth in that local Spanish-language television market
coupled with an increase in audience share at KVEA.
The Company believes that the overall decline in audience share previously noted
has been in part the consequence of difficulties encountered in acquiring and
developing programming to compete effectively with its principal competitor's
prime-time programming. The Company determined that it would likely be able to
compete more effectively by allying itself with one or more strategic partners
who could provide it with the programming, capital and other resources to
aggressively pursue the U.S. Spanish-language television audience. This resulted
in the search for potential strategic programming partners for purposes of
expanding programming options and enhancing stockholder value as discussed under
"Proposed Merger Transaction".
The increase in commercial air time revenue in Puerto Rico is the result of WKAQ
maintaining its dominant audience share in a market which grew during the
quarter.
Other revenue increased primarily due to sales of blocks of broadcast time at
higher rates.
Direct operating costs increased by 10% for the three months ended March 31,
1998 from the corresponding period of the prior year, which was primarily the
result of an increase in programming and production expenses.
Selling, general and administrative expenses other than network and corporate
increased by 2% for the quarter ended March 31, 1997 which was primarily the
result of greater sales costs related to the increase in revenue and increased
advertising and promotion expenditures at the owned and operated stations.
Network expenses, which represent costs associated with the network operations
center as well as sales, marketing and other network costs not allocated to
specific television stations, increased by 21% in 1998, which primarily reflects
increases in sales commissions and bonuses related to the increase in revenue
and increases in various other network expenses.
Corporate expenses increased by $558,000 from the comparable period of the prior
year. This was primarily the result of an increase in executive
performance-based compensation and additional legal costs.
As a result of the above, the operating loss before depreciation and
amortization improved by $1.2 million from the comparable period of the prior
year.
10
<PAGE>
TELEMUNDO GROUP, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF
OPERATIONS AND FINANCIAL CONDITION (CONTINUED)
- -------------------------------------------------------------------------------
Merger related expenses include investment banking, legal, accounting and other
costs incurred during the quarter ended March 31, 1998 for services provided to
the Company in connection with the Merger.
Interest expense, net of interest income, for the three months ended March 31,
1998 totaled $5.3 million as compared to $5.0 million for the corresponding
period of the prior year. Interest expense for both periods includes (i)
interest accrued and accreted on the 10.5% Senior Notes due 2006 (the "Senior
Notes"), which were issued at a discount and were structured to produce a yield
to maturity of 10.5% per annum, (ii) amortization of deferred issuance costs for
the Senior Notes, (iii) interest and fees on the Company's revolving credit
facility, and (iv) interest accrued and accreted on the 10.25% Senior Notes (the
"10.25% Notes") which were outstanding during the period (approximately 99.8% of
which were tendered in a repurchase offer on February 26, 1996). Interest
expense was offset by $87,000 and $126,000 of interest income for the three
months ended March 31, 1998 and 1997, respectively.
The income tax provision recorded in both periods relates to WKAQ, which is
taxed separately under Puerto Rico income tax regulations, withholding taxes
related to intercompany interest, and certain federal and state income and
franchise taxes. The Company is in a net operating loss position for federal
income tax purposes. The Company's use of its net operating and capital loss
carryforwards incurred prior to December 31, 1994 are subject to certain
limitations imposed by Section 382 of the Internal Revenue Code and their use
will be limited.
Minority interest represents distributions to the 25.5% partner in Video 44,
which is based on a minimum annual preferred distribution to such partner.
LIQUIDITY AND SOURCES OF CAPITAL
The Company's cash flows provided from (used in) operating activities were $4.1
million and $(5.9) million for the three months ended March 31, 1998 and 1997,
respectively. The increase was primarily the result of the net effect of changes
in certain asset and liability accounts and the increase in operating income
before depreciation and amortization.
The Company had working capital of $38.7 million at March 31, 1998.
Capital expenditures of approximately $2.5 million were made during the three
months ended March 31, 1998 for the replacement and upgrading of equipment and
upgrading of facilities.
The Company's principal sources of liquidity are cash from operations and a
revolving credit facility. The facility provides for borrowings of up to $20
million, subject to an accounts receivable borrowing base, which was maintained
at March 31, 1998. At March 31, 1998, the Company had $6.1 million in borrowings
outstanding under the facility and a $1.2 million standby letter of credit which
was issued to secure an office lease, leaving $12.7 million available. The
Company plans on financing interim cash needs through cash generated from
operations and the revolving credit facility. The Company does not anticipate
the need to obtain any additional financing to fund operations.
11
<PAGE>
TELEMUNDO GROUP, INC. AND SUBSIDIARIES
PART II. OTHER INFORMATION
- -------------------------------------------------------------------------------
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) EXHIBITS
27 Financial Data Schedule
(b) REPORTS ON FORM 8-K
During the three months ended March 31, 1998, the Company did not
file any reports on Form 8-K.
12
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
TELEMUNDO GROUP, INC.
(Registrant)
/s/ Peter J. Housman II
--------------------------------
Date: May 14, 1998 Peter J. Housman II
(Chief Financial Officer and Treasurer)
13
<PAGE>
EXHIBIT INDEX
EXHIBIT DESCRIPTION
- ------- -----------
27.1 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000806083
<NAME> Telemundo Group, Inc. and Subsidiaries
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-31-1998
<CASH> $5,673,000
<SECURITIES> 0
<RECEIVABLES> 50,316,000
<ALLOWANCES> 7,923,000
<INVENTORY> 0
<CURRENT-ASSETS> 73,829,000
<PP&E> 66,584,000
<DEPRECIATION> 30,560,000
<TOTAL-ASSETS> 280,705,000
<CURRENT-LIABILITIES> 35,106,000
<BONDS> 192,768,000
0
0
<COMMON> 103,000
<OTHER-SE> 17,195,000
<TOTAL-LIABILITY-AND-EQUITY> 280,705,000
<SALES> 44,606,000
<TOTAL-REVENUES> 44,606,000
<CGS> 0
<TOTAL-COSTS> 48,782,000
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 5,328,000
<INCOME-PRETAX> (11,021,000)
<INCOME-TAX> 1,165,000
<INCOME-CONTINUING> (12,957,000)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (12,957,000)
<EPS-PRIMARY> (1.26)
<EPS-DILUTED> (1.26)
</TABLE>
