Hispanic Broadcasting Corporation announced that the Company will post lower revenue and broadcast cash flow for the fourth quarter ended December 31, 2000 than originally anticipated. Subject to year-end audit adjustments, revenues will be approximately $60.0 million, representing an approximate 10% growth rate compared to last year after excluding revenues from a short-term local marketing agreement in 1999. Broadcast cash flow will be in the range of $24.5-25.0 million, or approximately 15%-20% below broadcast cash flow guidance provided earlier in the quarter. After-tax cash flow, benefiting from a lower effective tax rate and a one-time gain associated with the successful prosecution of an arbitration proceeding, will be approximately $.20 to $.21 per share.
Revenue growth slowed during the quarter from strong mid-teens comparable revenue growth in October to a slight revenue decline in December. Fourth quarter performance was also affected by the previously disclosed increase in promotion and marketing expense, and from operating losses from the Company's Internet division, compared to last year. Commenting on the quarter, Mac Tichenor, President and Chief Executive Officer of the Company said, "Business in the fourth quarter reflected our customers' response to the effects on their businesses of a sudden reduction in economic growth and poor consumer sentiment. Fourth quarter revenue growth was in sharp contrast to the strong environment that propelled our operating performance during the first three quarters of the year."
Fiscal Year 2001 Outlook
For the year ended December 31, 2001, the Company anticipates net revenues and broadcast cash flow to approximate $267 million and $120 million, respectively. Net income is expected to approximate $47.5 million, and after-tax cash flow to be about $91.9 million. These estimates imply a net revenue growth in the 12%-14% range and broadcast cash flow growth in the 16%-18% range. Same station revenue growth is expected to approximate 10%-11% for the year. Commenting on the coming year, Mac Tichenor said, "Our view on the year is tempered by fourth quarter 2000 performance and expectations that first quarter revenue pacings will be in the high single digits. Also, we anticipate relatively flat broadcast cash flow growth for the first quarter of 2001 due primarily to higher operating losses associated with the Company's Internet operation, and a roll forward of costs associated with a variety of initiatives designed to expand our marketing presence and our audience ratings around the country. We expect that revenue growth will be higher during the second half of 2001."
Estimated operating results for 2001 reflect operating losses from HBCi, the Company's Internet division, in the amount of $4.0-$5.0 million and one-time costs of approximately $1.0 million associated with the operation of duplicative studio facilities in Los Angeles and San Francisco. The current line-up of start-up stations, taken as a whole, is expected to be profitable for the year. The estimates assume that the Company will operate approximately six start-up radio stations during all or part of the year. The estimates also assume continued investment in promotion, marketing and programming, although at a moderating rate of increase as the year progresses and as compared to 2000.