Net loss from continuing operations was $1.2 million for the three months ended June 30, 2013, a decrease of $3.8 million compared to net income of $2.7 million for the same period in 2012, and net loss was $1.7 million for the six months ended June 30, 2013, a decrease of $5.2 million compared to net income of $3.5 for the same period in 2012. The net losses were due primarily to increases in operating expenses.
Adjusted EBITDA increased $3.9 million, or 59%, to $10.5 million for the three months ended June 30, 2013, and increased $4.3 million, or 41%, to $14.7 million for the six months ended June 30, 2013.
The Company continues to expect to meet its previously provided guidance of approximately $41 million of adjusted EBITDA for the full year 2013.
Alan Sokol, CEO of Hemisphere, stated, “We achieved a quarter of solid results and meaningful EBITDA growth. All of our assets continue to perform at high levels and are leaders in their respective markets. WAPA-TV remains the most-watched network in Puerto Rico for the 5th consecutive year and WAPA America and Cinelatino are among the most popular and widely-distributed Hispanic cable networks in the U.S. Our recently executed term loan facility will provide the necessary funds for strategic acquisitions of complementary assets. We are confident that through our management expertise we can continue to find underperforming assets in our space that can become market leaders.”On July 30, 2013, certain of the Company’s subsidiaries entered into a credit agreement providing for a $175 million senior term loan facility, which matures on July 30, 2020. After repayment of all outstanding debt obligations at the Company’s subsidiaries and payment of fees and expenses, net cash proceeds were approximately $85 million. The Company will use these proceeds for general corporate purposes, including potential acquisitions. The cash raised is in addition to the cash on the balance sheet as of June 30, 2013 of $81 million.