Much like the situation at African American-centric media company Urban One, Spanish Broadcasting System (SBS) has a new independent registered public accountant. As such, that’s created a delay in the timely filing of its quarterly earnings reports with the Securities and Exchange Exchange.
Late Wednesday (5/29), the company founded and led by Raúl Alarcón Jr. filed its Q4 and full-year 2023 earnings. How did SBS do in the final quarter with Chief Financial Officer José Molina, who resigned two weeks after accountancy Crowe LLC was replaced by EisnerAmper LLP?
Like its peers, it was not a good 2023 for SBS, as its adjusted OIBDA declined by 24%, to $27.94 million from $36.69 million. Consolidated net revenue from continuing operations fell to $147.33 million from $156.49 million, as the net loss for SBS widened to $40.7 million (-$4.43 per share) from $4.82 million (-$0.59).
In the fourth quarter, SBS’s net revenue from continuing operations slipped to $42.33 million from $45.36 million. However, an income tax benefit and dollars tied to its MegaTV unit, which had been considered a discontinued operation before the non-consummation of its purchase by VOZ Media, helped SBS achieve net income in Q4 of $2.98 million ($0.32), compared to a net loss in Q4 2022 of $1.47 million (-$0.18).
While the sale of SBS’s television assets did not proceed, the company shared that it “continues to pursue the sale” of the stations’ license and associated real estate. “The company expects the assets to be sold within one year,” it said.
Commenting on the Q4 results, Mr. Alarcón said, “Our fourth quarter results exhibited the positive realignment of the company’s financial performance and reflected the beginning of an extensive re-focusing of all the company’s operating units, which continues to this day.”
He added that the resignations of Molina, which came following the voluntary exit of former President/COO Albert Rodriguez, SBS “is now well positioned and on its way to establishing triple-digit EBITDA increases in the first and second quarters and, correspondingly, throughout the entire first half of 2024.”
Alarcón believes the “significant operating improvements are due, in large part, to an extensive line-by-line evaluation of our personnel and operations and the expedient adoption of strictly disciplined cost controls and operational oversights.”
This explains why the founder of SBS, who created the company in 1983 with the purchase of the former WVNJ-AM in Newark, N.J., is optimistic and confident in SBS’s future as a leader in Hispanic media and entertainment.
