2002_annual

Un i v i s i o n Co m m u n i c a t i o n s I n c.
2002 Annual Report
O n th e cover
I n t e r i o r c o u r t y a r d , C a s a d el C ond e d el Va lle d e S ú c hil , D ur a n g o , D ur a n g o , M éxi c o
About U nivision
U nivision Communic a tions Inc. (“ U nivision”) is the le a ding Sp a nish-l a ngu a ge medi a a nd
entertainment company in the United States. Univision owns and operates two national broadcast
television networks, a national cable television network, 50 broadcast television stations, a music
recording and publishing company, and an Internet portal. Univision media reach virtually all of the
more than 37 million Hispanics living in the United States.
Univision holds a 50% interest in Disa, a company specializing in regional Mexican music, and a
non-voting interest in Entravision Communications Corporation, a public, Spanish-language media
company that is the largest affiliate of Univision’s broadcast television networks.
Univision’s headquarters are located in Los Angeles, C alifornia. The company ’s stock (U V N) is traded
on the N ew York Stock Exchange.
Univision’s three areas of operation are described below.
Hispanic Cultural Legacy
Te l e v i s i o n
Univision N etwork: the nation’s most-watched Spanish-language broadcast television network, reaching 97%
of U.S. Hispanic television households.
TeleFutura N etwork: the nation’s newest 24-hour, general-interest, Spanish-language broadcast television
network, reaching 75% of U.S. Hispanic television households.
G alavisión: the nation’s leading Spanish-language cable television network, reaching 90% of all U.S. Hispanic
households that subscribe to cable and direct broadcast systems.
Univision Television Group: the owner and operator of 15 full-power and 7 low-power television stations that
form the core distribution for Univision N etwork, plus 1 full-power television station that broadcasts UPN .
TeleFutura Television Group: the owner and operator of 16 full-power and 11 low-power television stations that
form the core distribution for TeleFutura N etwork.
Music
Univision Music Group: the nation’s leading Latin music recording company and a developing publisher
of Latin music.
Internet
Univision O nline: the owner and operator of univision.com, the most-visited U.S.-based, Spanish-language
Internet portal, with more than one billion page views per year.
Few artif a cts spe a k as resolutely a nd enduringly a bout a people’s culture as its architecture. In
this a nnu a l report, we p ay hom a ge to the roots of our U .S. H isp a nic a udience by illustra ting one
aspect of its culture — architecture cre a ted a cross severa l centuries a nd countries by H isp a nics a nd
the indigenous peoples who preceded them in the N ew World. T he structures preserve in wood,
stone, e arth, a nd steel the history a nd art of their builders. T he be a uty a nd variety of these
works — ra nging from 1 5th century M a chu Picchu in Peru to the 2 0th century C entra l Library in
Monterrey, M exico — represent hum a n expression th a t h as enriched people f ar beyond the purview
of the artists who cre a ted them.
2 0 0 2 Annual Report
Pa g e 1
Financial Highlights
2002
20 01
2000
N et revenues
$1,091,293
$887,870
$863,459
N et income a pplic a ble to common stockholders
$
86,503
$ 52,341
$116,405
Basic e arnings per sh are
$
0.39
$
0.25
$
0.57
Diluted e arnings per sh are
$
0.34
$
0.22
$
0.49
I n t h o u s a n d s , e x c e p t p e r- s h a r e d a t a
N et income per sh are a pplic a ble to common stockholders
S c u l p t e d s t o n e f a ç a d e d e t a i l , C a s a d e M ont ejo , M érid a , Yu c a t á n , M éxi c o
Pa g e 2
2 0 0 2 Annual Report
To O u r S t o c k h o l d e r s
Another Ye ar of Growth
For th e first tim e in its histor y, U nivision a chieve d a nnu a l n et reve nu es a bove $ 1 billion in
2 0 0 2 . T his result, a long with our growth in n et incom e , w as a ccomplish e d in th e f a c e of a
se cond conse cutive difficult ye ar for th e e conomy a nd for comp a nies d epe nd e nt on a dvertising reve nu es.
O ur success reflects the ra pidly growing U .S. H isp a nic popul a tion’s preference for U nivision’s
high-qu a lity Sp a nish-l a ngu a g e n ews, sports, e ntert a in m e nt, a nd public ser vic e infor m a tion .
Success for Tele Futura
T h e p ast ye ar w as on e of e nor mous a ccomplish m e nt for U nivision , b e ginning with th e
l a unch of Tele Futura N etwork on Ja nu ar y 1 4 , 2 0 0 2 . Tele Futura is our se cond n a tion a l bro a dc ast television n etwork a nd th e first n ew n a tion a l bro a dc ast television n etwork in th e U .S. ever
to pre miere with n etwork progra m ming in ever y d ayp art. From its first d ay on th e a ir,
Tele Futura h as b e e n a not a ble succ ess, exp a nding th e overa ll viewing of Sp a nish-l a ngu a g e
television by U .S. H isp a nics.
Tele Futura , tog eth er with U nivision N etwork a nd G a l avisión , provid es a n ew ra ng e of viewing choic es to U .S. H isp a nics. T h e a ttra ctive progra m ming offere d by Tele Futura is distinct
from th a t of our oth er television n etworks a nd th a t of our Sp a nish- a nd English-l a ngu a g e
competitors. Tele Futura ’s lin e up of prim etim e H ollywood movies dubb e d in Sp a nish a nd origin a l Sp a nish-l a ngu a g e movies, prim etim e g a m e shows, a nd sports h as dra wn a l arg e a udie nc e
to th e n etwork. By th e e nd of 2 0 0 2 , Tele Futura h a d exc e e d e d th e go a l set a t its l a unch to
re ach a 10 share of the adult 18-49 Spanish-language network audience from sign-on to sign-off.
In 2 0 0 2 , Tele Futura re a ch e d th e # 2 position a mong U .S. Sp a nish-l a ngu a g e television
n etworks n a tion a lly during som e d ayp arts—a signific a nt a chieve m e nt for a n ew n etwork in
a ny l a ngu a ge . Tele Futura ’s ra tings success in 2 0 0 2 was p articul arly noteworthy bec a use
A p s e o f t h e c h a p e l , Pa l a cio Episcop a l d e Astorg a , A storg a , Le ó n , Esp a ñ a . A n to nio G a u dí , a rc hit e c t
Pa g e 4
2 0 0 2 Annual Report
Tele Futura was ava il a ble to only 7 3% of a ll H isp a nic television house holds. We expe ct to
become the le a ding U .S. La tin music comp a ny. T he Recording Industry Associ a tion of A meric a ’s
continu e exte nding Tele Futura ’s m arket covera g e in th e ye ars a h e a d.
s a l es r e ports i n di c a t e th a t U nivisio n M usi c G ro u p ’s r e c ordi n g l a b e ls — U nivisio n Re c ords,
60
Fonovisa Re cords, a nd D isa Re cords — le d th e U .S. L a tin m usic industr y in th e third qu arter of
2 0 0 2 with a n estim a te d 3 6% m arket sh are .
Growth for O ur O ther Television Properties
T h e oth er p arts of our television opera tion a chieve d exc elle nt results during 2 0 0 2 as well.
U nivisio n M usi c G ro u p ’s l a b e ls a ver a g e d five of th e top t e n b est-se lli n g a lb u ms o n
Billbo ard M a g a zine ’s we e kly L a tin ch arts in 2 0 0 2 . Two of our artists, Je nnifer Pe ñ a a nd
U nivision N etwork a ttra cte d re cord a udie nc es during th e ye ar a nd continu e d to d eliver th e
most popul ar Sp a nish-l a ngu a g e progra ms on television a cross a ll d e mogra phics a nd d ayp arts.
45
G a l avisión exp a nd e d its le a d a mong Sp a nish-l a ngu a g e c a ble n etworks in 2 0 0 2 a nd grew
singles. M onte n e gro w as # 1 for 1 3 conse cutive we e ks—a n ew re cord for “ H ot L a tin Tra cks. ”
In a ddition to th ese succ esses, U nivision M usic G roup l a b els a ccounte d for a pproxim a tely h a lf
incre ase d its ra tings a nd nu m b er of a dvertisers as a result of a m a jor ch a ng e in progra m ming
1500
of th e re gion a l M exic a n m usic sold in th e U .S. in 2 0 0 2 .
30
U n ivisi o n O n l i n e p e r f or m e d e xc e p t i o n a l ly w e l l i n i ts s e c o n d y e a r o f o p e r a t i o n :
a nd e ntert a in m e nt shows — avera g es over 5 5 hours of live progra m ming e a ch we e k.
univision .com stre ngth e n e d its le a d as th e most popul ar U .S.-b ase d Sp a nish-l a ngu a g e
U nivision Television G roup a nd Tele Futura Television G roup st a tions a lso per for m e d
1000
Intern et port a l. G e n era ting more th a n on e billion p a g e views in 2 0 0 2 , univision .com ’s fresh
exc eption a lly well in 2 0 0 2 . In th e N ove m b er swe ep, U nivision Television G roup’s loc a lly
produc e d eve ning n ewsc asts were ra te d # 1 a mong a ll a dults 1 8-3 4 in th e top thre e television
2000
Pil ar M onte n e gro, e a ch h eld th e # 1 position on Billbo ard ’s “ H ot L a tin Tra cks” with th eir d e but
its distribution to double th a t of its n e arest competitor. In a ddition , G a l avisión dra m a tic a lly
stra te gy imple m e nte d in M ay 2 0 0 2 . G a l avisión’s n ew lin e up — fe a turing n ews, sports, variety,
2500
a nd lively conte nt a nd gra phics h ave exte nd e d “ th e U nivision experie nc e ” from television to
15
th e Intern et a nd m a d e th e site on e of th e most succ essful m e di a-a ffili a te d onlin e port a ls.
m arkets in the U .S.: N ew York, Los A ngeles, a nd C hic a go. U nivision Television Group st a tions
500
U nivision O nlin e double d its a dvertising b ase to more th a n 1 0 0 comp a nies in 2 0 0 2 .
score d equ a lly well wh e n a iring U nivision N etwork n ews. In the sa me three m arkets, more
p e opl e i n this a g e gro u p wer e w a tc hi n g U nivisio n N e twork ’s eve ni n g n ews a n c h ors
Jorg e Ra mos a nd M arí a Ele n a Sa lin as th a n were w a tching Peter Je nnings, Tom Brok a w,
or D a n Ra th er.
In e arly 2 0 0 2 , U nivision Television G roup b e g a n m a n a ging television st a tion WLII in
Stra tegic Ra dio Initia tive
0
2000
2005
2010
2015
2020
with n e arly four million H isp a nics.
In 2 0 0 1 a nd 2 0 0 2 , we a cquire d th e 2 5 television st a tions th a t now for m th e core of
Tele Futura N etwork’s n a tion a l distribution , a nd 1 4 of th ese st a tions give us th e stre ngth of a
duopoly position—a U nivision Television G roup st a tion a nd a Tele Futura Television G roup
C orpora tion (“ H B C ”), a le a ding U .S. Sp a nish-l a ngu a g e ra dio comp a ny, which owns a nd/or
progra ms 6 3 ra dio st a tions. T h e a cquisition , which h as b e e n a pprove d by th e stockhold ers of
0
2000
2005
2010
2015
2020
U nivision a nd H B C , is curre ntly und er review by govern m e nt re gul a tor y a g e ncies.
Pu erto Rico with a thre e-ye ar option to purch ase th e st a tion . In less th a n six months und er our
stew ardship, th e st a tion move d from a pere nni a l # 3 position to # 1 . Pu erto Rico is a m arket
In Jun e 2 0 0 2 , U nivision a nnounc e d a n a gre e m e nt to a cquire H isp a nic Bro a dc asting
U .S. H ispa nic
Po p u l a t i o n
(esti m a te d in millions)
Sourc e for 2 0 0 0 :
U .S. C ensus Bure a u, C ensus 2 0 0 0
Sourc e for 2 0 0 5-2 0 2 0 :
T h e H isp a nic C onsu m er M arket Re port
in 1 9 9 9 a nd Fore c a sts to 2 0 2 0 :
S t a n d a r d & Po o r ’ s D R I , 2 0 0 0
If a pprove d by th e re gul a tor y a g e ncies, th e a cquisition is expe cte d to ope n import a nt n ew
ave nu es of growth for U nivision . We b elieve th a t if th e a cquisition is a pprove d, U nivision’s
a bility to offer a dvertisers th e bra nd-building power of television in com bin a tion with th e
promotion a l power of ra dio will result in a n a cc elera tion of th e ra te a t which a dvertisers
U .S. H ispa nic
B u y i n g Po w e r
(esti m a te d $ in billions)
Source : T he H isp a nic C onsum er
M arket Report in 1 9 9 9
a nd Fore c asts to 2 0 2 0 :
S t a n d a r d & Po o r ’ s D R I , 2 0 0 0
d evelop Sp a nish-l a ngu a g e m arketing c a mp a igns.
st a tion in th e sa m e m arket. A ll 1 4 of our duopoly m arkets are ra nke d a mong th e top 3 0
H isp a nic m arkets in th e U .S. In th e N ove m b er 2 0 0 2 swe ep, U nivision Television G roup a nd
Commitment to Public Affairs
Tele Futura Television G roup st a tions were th e # 1 a nd # 2 Sp a nish-l a ngu a g e st a tions a mong
In Fe bru ar y 2 0 0 2 , a n a tion a l study by T h e H e nr y J. K a iser F a mily Found a tion single d out
H isp a nics in m a ny m arkets in key tim e periods.
U nivision N etwork for d e dic a ting th e most tim e to public ser vic e a nnounc e m e nts of a ny
bro a dc ast or c a ble television n etwork in th e U .S. In N ove m b er 2 0 0 2 , U nivision b e c a m e th e
Progress for O ur Emerging Businesses
first Sp a nish-l a ngu a g e bro a dc ast television comp a ny to win th e prestigious G old Bell Aw ard
U nivision M usic G roup a nd U nivision O nlin e both m a d e tre m e ndous strid es in 2 0 0 2 . Sinc e
for M e di a , T h e A dvertising C ouncil’s pre mier m e di a a w ard for outst a nding com mitm e nt to
th e completion of th e a cquisition of Fonovisa in A pril 2 0 0 2 , U nivision M usic G roup h as
Pa g e 6
2 0 0 2 Annual Report
public servic e .
2 0 0 2 Annual Report
Pa g e 7
T h ese are just two of th e m a ny a cknowle dg m e nts re c eive d by our n etworks a nd st a tions in
2 0 0 2 for th eir exe mpl ar y public ser vic e efforts in e duc a tion , drug preve ntion , voter p articip ati o n , i m m i gr a ti o n , h e a l t h , c o nsu m er pr o t e c ti o n , a n d o t h er o u tr e a c h pr o gr a ms. O ur
com mitm e nt to public ser vic e is a n import a nt re ason we continu e to e arn th e trust a nd loya lty
of our a udie nc e .
A Te a m Effort
O perations Review
U nivision’s per for m a nc e in 2 0 0 2 w as th e result of our te a m ’s h ard work a nd com mitm e nt
to exc elle nc e . I th a nk a ll U nivision e mploye es for th eir contributions to th e comp a ny. T h e
c a p a bility of th e U nivision te a m w as well d e monstra te d l ast ye ar during th e l a unch of
Tele Futura N etwork. N e arly a ll of th e m a n a g e m e nt a nd m uch of th e st a ffing for Tele Futura
c a m e from within th e U nivision f a mily.
O ur growth in 2 0 0 2 could not h ave t a ke n pl a c e without th e vit a l support of our p artn ers,
Televisa a nd Ve n evision , whose progra m ming is ava il a ble for bro a dc ast in th e U .S. exclusively
by th e U nivisio n t e l evisio n n e tworks thro u g h 2 0 1 7 . Mr. E m ilio A zc á rr a g a Je a n , Pr esid e n t ,
C hief Executive O fficer, a nd C h a irm a n of Televisa , was welcom ed to our Bo ard in Ja nu ar y 2 0 0 2
a nd w as subsequ e ntly ele cte d Vic e C h a ir m a n of th e Bo ard.
T he Ye ar Ahe a d
While we h ave se e n m a ny e ncoura ging signs of a re bound in a dvertising a ctivities, we
re cognize th a t our n a tion a nd e conomy continu e to f a c e m a ny unc ert a inties. We re m a in
c a utiously optimistic for 2 0 0 3 . We serve th e countr y ’s l arg est a nd f astest-growing minority
group a nd hold a strong position in Sp a nish-l a ngu a g e m e di a a nd e ntert a in m e nt in th e U .S.
O ur t ask in th e ye ar a h e a d is to inte gra te our busin esses more fully a nd furth er d evelop th eir
pote nti a l. We h ave m uch to a ccomplish in th ese difficult tim es, a nd we h ave m a d e a good
st art. Sp a nish-l a ngu a g e m e di a in th e U .S. is still in its inf a ncy, a nd U nivision , th e le a d er in th e
field, is in th e right pl a c e a t th e right tim e .
I th a n k yo u , o ur sto c k h old ers, for yo ur confid e nc e in our m a n a g e m e nt of U nivision’s
resourc es.
A. J e r r o l d Pe r e n c h i o
C h a ir m a n of the Bo ard a nd C hief Executive O fficer
Pa g e 8
2 0 0 2 Annual Report
2002 Broa dc ast
N etworks‘ Sh ares of
H ispa nic Viewing
o f N e t w o r k Te l e v i s i o n
F r o n t d o o r d e t a i l , Pa l a cio d e Iturbid e , C i u d a d d e M éxi c o , M éxi c o
Review 2002 — Sustaining Growth
Introduction — An O verview of O ur Per form a nce, Business, a nd M arkets
In 2002, U nivision’s net revenues a dva nced by 23% to $1.1 billion. N et income
incre ased by 65% to $86.5 million, a nd diluted e arnings per sh are grew by 55%
to $0.34.
We genera te our revenues by providing a dvertising-supported Sp a nish-la ngu a ge news
a nd entertainment to virtu ally all U .S. H isp a nic households through our three distinct
Sp a nish-la ngu a ge opera tions, as described below.
O ur television opera tion consists of five entities involved in bro a dc asting a nd c a ble:
U nivision N etwork, U nivision Television Group, Tele Futura N etwork, Tele Futura Television
Group, a nd G alavisión. O ur music opera tion, U nivision Music Group, specializes in
recording a nd publishing Latin music, a nd our Internet operation, U nivision O nline,
provides news, entertainment, public service, a nd inform ation via the Internet at
univision.com.
Two key ele m e nts influ e nc e our future ra te of growth: th e ch ara cteristics of th e
U .S. H ispanic population and our success in serving that population. This Review focuses
on our m arket a nd on our largest television property, U nivision N etwork.
A Sn a pshot of the U .S. H isp a nic Population
T he U .S. H isp a nic population is now the largest minority group in the U .S. T his population, which is growing 7 times as fast as the non- H isp a nic U .S. population, is projected
to re a ch 55 million by 2020. T his steep growth rate is a result of both immigration a nd
n atural growth. It is projected th at by 2040, one of every five A meric a ns will be of
H isp a nic descent.
T he Sp a nish-la ngu a ge television a udience in the U .S. is also growing ra pidly.
U nivision’s progra mming is culturally releva nt to this a udience, a nd our progra mming
h as contributed signific a ntly to the incre ase in the percenta ge of U .S. H isp a nic
a dults 18-49 who watch Sp a nish- rather th a n English-la ngu a ge television. Viewing of
Sp a nish-la ngu a ge television by U .S. H isp a nic a udiences now a ccounts for 49% of their
Pa g e 1 0
2 0 0 2 Annual Report
P l a z a a n d g r a n d s t a i r c a s e , El C a stillo , Tul u m , Q ui n t a n a Roo , M éxi c o
total primetime viewing of a dvertising-supported television, up from 35% in 1992, when N ielse n M e di a
Rese arch (“ N ielse n”) first beg a n me asuring the H isp a nic component.
In August 2002, N ielsen rele ased the first television household estim ates b ased on C ensus 2000 d ata th at
used detailed population inform ation by a ge group. N ielsen’s d ata show th at U .S. H isp a nics a ccounted for
84% of the growth from N ielsen’s 2001 estim ates to N ielsen’s 2003 estim ates in e a ch of two key U .S. television populations: a dults 18-34 a nd a dults 18-49. A ccording to N ielsen’s d ata for the 2002-2003 bro a dc ast
television se ason, H isp a nics now constitute 18% of the U .S. a dult 18-34 television popula tion a nd 15% of the
U .S. a dult 18-49 television population. From 2000 to 2010, the projected substa ntial growth of the H isp a nic
a dult 18-49 demogra phic will offset wh at is expected to be a decline in the total number of U .S. a dults 18-49.
U .S. H isp a nics h ave become a dyn a mic economic force as well. T he rising affluence of U .S. H isp a nics is
reflected in their buying power, which is growing faster th a n th at of the rest of the population. U .S. H isp a nic
consumer spending exceeded $520 billion in 2002, a nd it is expected to re a ch $1 trillion by 2010 a nd more
th a n $2 trillion by 2020.
2 0 0 2 Annual Report
Pa g e 1 3
E x t e r i o r d e t a i l , Bibliot e c a C e ntr a l d e M ont errey , M o n t err ey, N u evo Le ó n , M éxi c o . Ri c a rd o Le g orr e t a , a rc hit e c t
Pa g e 1 4
2 0 0 2 Annual Report
2 0 0 2 Annual Report
Pa g e 1 5
U nivision M edia Are Invalu a ble for A dvertisers
In a ddition to their economic power a nd large a nd growing numbers, U .S. H isp a nics
continue to show a strong a ffinity for the Sp a nish la ngu a ge. Rese arch indic a tes th a t
some Spanish is spoken in ne arly 90% of all U .S. H ispanic households and that advertisements in Spanish are 4.5 times more effective than those in English a mong U .S. H ispanics,
reg ardless of la ngu a ge preference. As the le a ding Sp a nish-la ngu a ge media comp a ny in
the U .S., U nivision provides the ide al pla tforms for a dvertisers to deliver their messa ges
to U .S. H isp a nics.
Over the last ten broadcast television seasons, viewership of English-language broadcast
television networks as a whole decre ased substa ntially. D uring the sa me period, however,
U nivision exp a nded its bro a dc ast television a udience by a large me asure. O ver these ten
se asons, U nivision N etwork showed the gre a test growth of a ny network — in Sp a nish or
in English, bro a dc ast or c a ble — in the a dult 18-49 primetime a udience, a mong all television networks on the air since 1992.
Tele Futura h as played a key role in enlarging our total a udience. U nivision N etwork
a nd Tele Futura N etwork’s combined avera ge a dult 18-49 a udience was 20% gre ater in
2002 th a n the a udience of U nivision N etwork alone in 2001 for the sa me demogra phic.
Since the la unch of Tele Futura in Ja nu ary 2002, the number of H isp a nic a dults 18-49
who h ave chosen to watch primetime television in Sp a nish h as grown by 2 a udience
sh are points — a signific a nt number given the wide ra nge of viewing options availa ble in
both English a nd Sp a nish.
We continue to outper form our Sp a nish-la ngu a ge competition as well. O n avera ge
during the 2001-2002 se ason, U nivision N etwork a nd Tele Futura N etwork combined
delivered more th a n 3 times the a udience of the ne arest Sp a nish-la ngu a ge competitor
throughout the bro a dc ast d ay for the a dult 18-49 demogra phic.
T hese d ata are m a king a strong impression on a dvertisers, as demonstrated by the
incre ase in the number of a dvertisers th at m a de a dva nce buying commitments during
our most recent U pfront se ason. U pfront, which begins e a ch M ay, is the period during
which m ajor n ation al a dvertisers c a n secure commercial time on progra ms th at will be
aired the following bro a dc ast ye ar. U nivision signed a total of 120 a dvertisers in the
I n t e r i o r c o u r t y a r d d e t a i l , C a s a d el C ond e d el Va lle d e S ú c hil , D ur a n g o , D ur a n g o , M éxi c o
2 0 0 2 Annual Report
Pa g e 1 7
E a s t e r n v i e w, M a c h u Pic c h u , C uzc o , Perú
2002 U pfront se ason, a n incre ase of 17 a dvertisers from the 2001 se ason. O ur potential rem ains enormous — a pproxim a tely 60% of all n a tion al bra nds are not yet a dvertised
on Sp a nish-la ngu a ge television.
Focus: U nivision N etwork
U nivision N etwork is the most-wa tched Sp a nish-l a ngu a ge bro a dc ast television
network in the U .S. by a ny me asure. O f the top 25 progra ms watched in H isp a nic homes
during the 2001-2002 se ason, all but 2 progra ms ( S uper Bowl X X X VI a nd World Series
G a me 7) were bro a dc ast by U nivision N etwork. Primetime ratings in H isp a nic households were higher for U nivision N etwork th a n for its four closest competitors combined
(ABC , N BC , Fox, a nd Telemundo) in the 2001-2002 television se ason.
T he N ovember 2002 sweep showed th at, in primetime, U nivision N etwork delivered
more H isp a nic men, women, a nd a dults in the 18-34 a nd 18-49 c ategories th a n did
ABC , CBS, N BC , Fox, WB, UP N , a nd PA X combined. Also a ccording to N ovember sweep
d ata , U nivision N etwork’s e arly-morning progra m D espierta América attra cted more
H isp a nic viewers th a n did ABC ’s G ood Morning America , CBS’s The Early S how , a nd
N BC ’s Today combined.
T hese successes em a n ate from strategic progra mming choices a nd the a bility to
re a ch virtu ally the entire U .S. H isp a nic a udience through bro a dc ast television stations
owned a nd operated by U nivision a nd its affiliates.
Progra mming
Progra mming is the art of deciding which shows should be cre ated, produced, a nd
a cquired for bro a dc ast a nd when they should be aired. T he qu ality a nd popularity of the
shows c arried by our networks a nd stations form the found ation of U nivision’s ratings
a nd a dvertising successes. Below are progra mming highlights from the 2001-2002
television se ason th at illustrate why U nivision N etwork ra nks # 1 in the U .S. Sp a nishla ngu a ge bro a dc ast television industry.
Pa g e 1 8
2 0 0 2 Annual Report
Te r r a c e d h i l l , S a ntu a rio d e S ondor , A p urí m a c , Perú
Pa g e 2 0
2 0 0 2 Annual Report
2 0 0 2 Annual Report
Pa g e 2 1
S c a l l o p e d r o o f o f t h e n o r t h e r n g a t e - l o d g e , Pa rc G ü ell , B a rc e lo n a , C a t a lo ni a , Esp a ñ a . A n to nio G a u dí , a rc hit e c t
N ovelas
U nivision N etwork’s top progra mming successes consistently are novelas , serial
dra m as th a t e a ch air five d ays a week a nd typic ally run for four to eight months. O ur
novelas are the most popular regularly bro a dc ast shows on Sp a nish-la ngu a ge television,
a nd their ra tings demonstra te th a t they a ppe al to all fa mily members.
U nivision N etwork airs a n a fternoon block of novelas every Mond ay through Frid ay
a nd thr e e diff er e nt novel as e a c h we e kd a y eve ning — a t 7 : 0 0 , 8 : 0 0 , a nd 9 : 0 0 .
U nivision N etwork’s evening novelas consistently are blockbuster hits, typic ally drawing
25-30 H isp a nic household rating points.
Entertainment
O n N ovember 9, 2002, U nivision N etwork aired a special commemorating the
40th a nniversary of S ábado Gigante , celebra ting the show ’s inclusion in “ G uinness
World Records” as the longest-running progra m with the sa me host in a ny la ngu a ge in
the history of television. T he popular g a me a nd variety show was la unched by its
cre ator/host, M ario Kreutzberger, known to his viewers as “ D on Fra ncisco, ” in his n ative
Chile in 1962 a nd h as been bro a dc ast on U nivision N etwork since 1986. O ne of the
f a vorit e progr a ms a m ong U .S. H isp a nics, th e thr e e-hour show is produ c e d by
U nivision N etwork in Mia mi a nd bro a dc ast n ation ally every Saturd ay evening.
In the 2001-2002 se ason, U nivision a nd Mr. Kreutzberger introduced a new, second
progra m for D on Fra ncisco, a one-hour Wednesd ay evening interview/talk show c alled
Don Francisco Presenta , which quickly bec a me one of the top 25 Sp a nish-la ngu a ge
progra ms in U .S. H isp a nic households.
U nivision N etwork’s top-rated special — and the # 1 show in all U .S. Spanish-language
television bro a dc asting in 2002 — was Premio Lo N uestro . T his a nnu al music awards
show, produced by U nivision N etwork, airs e a ch Febru ary a nd honors the best in
Sp a nish-la ngu a ge music. Premio Lo N uestro typic ally draws 3 times more viewers th a n
does its closest music awards show competition.
Pa g e 2 2
2 0 0 2 Annual Report
C o u r t y a r d e n t r a n c e , El S a ntu a rio d e C him a yo , S a n t a Fe , N ew M exi c o , U nit e d St a t es
Pa g e 2 4
2 0 0 2 Annual Report
2 0 0 2 Annual Report
Pa g e 2 5
N ews
U nivision N etwork’s avera ge minute a udience was a n impressive 2.9 million households during our covera ge
U nivision N etwork produces over 40% of its own progra mming, much of which is generated by our award-
of th e fin a l m a tch b etwe e n G er m a ny a nd Bra zil d espite th e e arly kick-off tim e (4 : 0 0 a . m . Pa cific,
winning news dep artment. In 2002, U nivision N etwork was nomin ated by the N ation al A c a demy of Television
7:00 a .m. E astern).
Arts a nd Sciences for two n ation al N ews a nd D ocumentary Emmy Awards — one for a segment of our T hursd ay
U nivision will bro a dc ast a n extensive array of soccer competitions in 2003, including the FIFA Women’s
night newsm a g azine show, Aquí y Ahora , a nd one for a n episode of our d aily afternoon newsm a g azine show,
World Cup , the Copa O ro , the Confederations Cup , a nd the Liga Mexicana g a mes a nd playoffs in the summer
Primer Impacto . T he only Sp a nish-la ngu a ge news shows ever to win the prestigious n ation al Emmy h ave been
a nd winter se asons. U nivision also owns the Sp a nish-la ngu a ge U .S. television bro a dc ast rights to the 2004
those of U nivision N etwork.
Copa América competition a nd the 2006 FIFA World Cup competition.
U nivision N etwork airs newsc asts throughout the bro a dc ast d ay, a nd all of our n ation al news progra ms
continue to win le a dership positions in their time slots a mong H isp a nics. For exa mple, during 2002, the
Viewer Choice A cross T hree Television N etworks
number of H isp a nic a dult 18-49 viewers delivered by U nivision N etwork’s n ation al d aily evening newsc ast,
We h ave long m aintained th a t the U .S. H isp a nic a udience h as been underserved in Sp a nish-la ngu a ge
N oticiero U nivision , was gre ater th a n the number of H isp a nic a nd non- H isp a nic a dult 18-49 viewers delivered
television fare. T he success of Tele Futura N etwork in its first ye ar of television bro a dc asting supports this thesis.
by C N N , C N BC , Fox N ews Ch a nnel, a nd MS N BC combined in the sa me h alf hour. N oticiero U nivision a nd
T he counterprogra mming of U nivision’s three network schedules gives unprecedented progra m choice to
Primer Impacto are the only Sp a nish-la ngu a ge network news progra ms ever honored with the prestigious
H isp a nic viewers, a nd the H isp a nic a udience h as responded with considera ble enthusiasm. In weekd ay prime-
Edward R. Murrow Award for best newsc ast or best news series.
time when U nivision N etwork is airing enormously popular novelas , for exa mple, Tele Futura N etwork is
bro a dc asting blockbuster H ollywood a nd origin al Sp a nish-la ngu a ge movies, a nd G alavisión is bro a dc asting
Sports
g a me a nd variety shows, news, comedy, a nd sports. T his stra tegy h as proven to be a gre a t success for e a ch of
U nivision Sports produces progra ms princip ally centered on soccer, boxing, a nd d aily sports news for
the networks a nd for U nivision as a whole in building a udience a nd m aintaining a le a dership position.
U nivision N etwork, Tele Futura , a nd G alavisión. T he high qu ality of our sports shows is exemplified by our covera ge of the FIFA World Cup soccer competition played in June 2002 in South Kore a a nd Ja p a n.
T he World Cup was one of the few insta nces in which U nivision bro a dc ast the sa me event as did Englishla ngu a ge television (ABC , ESP N , a nd ESP N 2), giving us the opportunity to prove in a direct comp arison the
competitive qu ality of our production. U nivision was the only U .S. bro a dc ast comp a ny to air all 64 World Cup
g a mes live. U nivision’s World Cup bro a dc asts were widely praised for their production values by the U .S.
In Conclusion
U nivision is m a ny stories, but most of all, it is a story of c areful, pla nned growth a nd rich potential. We are
a unique comp a ny, the collective a chievement of m a ny people, investments, a nd cultures. We are a comp a ny
well tuned to the energy a nd drive of the dyn a mic U .S. H isp a nic population. U nivision h as grown substa ntially
over the last ten ye ars, a nd we feel th a t even gre a ter growth lies a he a d.
media , including The N ew York Times , The Washington Post , a nd the Los Angeles Times . U nivision was singled
out both for providing commentaries th at were more informed, entertaining, a nd p assion ate th a n those of the
English-la ngu a ge World Cup bro a dc asts a nd for providing superior gra phics a nd picture qu ality. U nivision also
was complimented by the press for offering full, live covera ge of the post-ch a mpionship med als ceremonies
a nd festivities, which were not bro a dc ast by the U .S. English-la ngu a ge networks.
N ielsen showed that Univision N etwork, TeleFutura, and G alavisión not only captured 20.6 million U.S. Hispanic
viewers for some p art of the World Cup covera ge but also attra cted 15.2 million U .S. non- H isp a nic viewers.
Pa g e 2 6
2 0 0 2 Annual Report
2 0 0 2 Annual Report
Pa g e 2 7
U n ivisi o n M a rk e t Pr e s e n c e *
Designated
Market Area
(DMA)
DMA Rank**
(Number of Hispanic
Households)
Los Angeles, C A
N ew York, N Y
Mia mi, FL
H ouston, T X
Chic a go, IL
D allas, T X
Sa n Antonio, T X
Sa n Fra ncisco, C A
Phoenix, A Z
McAllen, T X
Albuquerque, N M
Sa n Diego, C A
El Paso, T X
Fresno, C A
Sa cra mento, C A
D enver, C O
Phila delphia , PA
Washington, D C
O rla ndo, FL
Ta mp a , FL
Austin, T X
Boston, M A
Corpus Christi, T X
Tucson, A Z
Las Veg as, N V
Atla nta , G A
H artford, C T
Monterey-Salin as, C A
Ba kersfield, C A
Portla nd, O R
Salt La ke City, U T
Laredo, T X
Yum a , A Z
O dessa-Midla nd, T X
Colora do Springs, C O
Sa nta Barb ara , C A
Lubbock, T X
A m arillo, T X
Palm Springs, C A
Ft. Myers, FL
Ya kim a , WA
Clevela nd, O H
Reno, N V
H onolulu, HI
India n a polis, I N
Sa n Angelo, T X
Chico-Redding, C A
Victoria , T X
Little Rock, AR
Ch arleston, SC
Bend, O R
Pa g e 2 8
2 0 0 2 Annual Report
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
29
30
32
33
34
35
36
37
38
39
42
43
46
47
53
55
60
62
73
77
84
97
131
175
Univision
Owned &
O perated
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
TeleFutura
Affiliates
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Owned &
O perated
Affiliates
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
1200
200
350
150
300
100
250
50
200
0
150
1000
•
•
800
600
•
•
•
•
•
•
400
200
0
1998
1999
2000
2001
•
2002
•
•
•
1998
1999
2000
2001
2002
N et Revenues
A dvertising Revenues
($ millions)
(indexed % growth rate)
U nivision A dvertising Revenues
G eneral M arket A dvertising Revenues
1998
1999
2000
2001
2002
E B I T D A (a)
($ millions)
(a)
Se e Footnote (c) on
p a ge 3 1 for definition.
Source : C ompetitive M edi a Reporting,
M e di a Wa tc h
•
•
* Excludes cable affiliates.
** Designated Market Areas ranked by Nielsen Media Research
Hispanic Household Universe Estimates, 2002-2003.
2 0 0 2 Annual Report
Pa g e 2 9
F i v e - Ye a r S u m m a r y o f S e l e c t e d F i n a n c i a l D a t a
F i v e - Ye a r S u m m a r y o f S e l e c t e d F i n a n c i a l D a t a
Univision Communications Inc.
Univision Communications Inc.
(In th o us a n ds, exc e pt sh a r e a n d p er-sh a r e d a t a )
For th e ye a rs e n d e d D e c e m b er 3 1 ,
2 0 0 2
2 0 0 1
2 0 0 0
1 9 9 9
1 9 9 8
E a r n i n g s P e r S h a r e A v a i l a b l e t o C o m m o n S t o c k h o l d e r s (b)
(In th o us a n ds, exc e pt sh a r e a n d p er-sh a r e d a t a )
For th e ye a rs e n d e d D e c e m b er 3 1 ,
2 0 0 2
2 0 0 1
2 0 0 0
1 9 9 9
1 9 9 8
$1,091,293
471,395
$887,870
355,761
$863,459
312,381
$693,090
241,870
$577,053
220,918
287,960
78,818
231,610
84,069
223,023
66,765
184,159
62,583
160,543
64,438
253,120
216,430
261,290
204,478
131,154
30,097
1,361
—
4,828
—
27,459
1,441
—
498
—
35,830
1,677
42,608
764
—
225,004
108,081
175,080
91,536
50,275
40,348
Income Statement D ata
N et revenues
Direct operating expenses (excluding depreciation expense)
Selling, general and administrative expenses
(excluding depreciation expense)
Depreciation and amortization
O perating income
Interest expense, net
Amortization of deferred financing costs
Special bonus award
Equity loss in unconsolidated subsidiaries and other
G ain on change in Entravision ownership interest
Income before taxes and extraordinary loss on
extinguishment of debt
Provision for income taxes
87,233
3,846
—
15,907
(1,898)
148,032
61,504
53,463
2,488
—
47,449
(4,552)
117,582
62,865
Income before extraordinary loss on extinguishment of debt
Extraordinary loss on extinguishment of debt, net of tax
86,528
—
54,717
(2,306)
116,923
—
83,544
(2,611)
9,927
—
N et income
Preferred stock dividends/accretion
86,528
(25)
52,411
(70)
116,923
(518)
80,933
(540)
9,927
(606)
N et income available to common stockholders
As adjusted income before extraordinary loss available
to common stockholders(a)
$
86,503
$ 52,341
$116,405
$ 80,393
$
9,321
$
86,503
$ 91,169
$150,634
$117,942
$ 49,353
Basic Earnings Per Share
Income before extraordinary loss
N et income
As adjusted income before extraordinary loss(a)
Weighted average common shares outstanding
Diluted Earnings Per Share
Income before extraordinary loss
N et income
As adjusted income before extraordinary loss(a)
Weighted average common shares outstanding
Current assets
Total assets
Current liabilities
Long-term debt
Stockholders’ equity
(b)
2 0 0 2 Annual Report
$
$
$
0.26
0.25
0.44
$
$
$
0.57
0.57
0.74
$
$
$
0.43
0.42
0.61
$
$
$
0.05
0.05
0.28
224,344,335
208,110,727
204,893,438
192,971,418
173,281,776
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
0.34
0.34
0.34
0.23
0.22
0.38
0.49
0.49
0.64
0.35
0.34
0.50
0.04
0.04
0.21
256,337,046
239,817,378
238,963,587
236,236,626
232,418,104
$
$
$
$
$
384,958
3,402,396
223,222
1,432,233
1,558,088
610,936
3,178,387
269,680
1,662,018
813,280
249,612
1,448,305
362,961
377,689
695,272
177,910
974,457
141,901
303,138
513,778
153,991
938,329
152,891
377,435
394,648
O ther D ata
EBIT DA (c)
N et cash provided by operating activities
N et cash used in investing activities
N et cash provided by (used in) financing activities
(c)
Pa g e 3 0
0.39
0.39
0.39
B a l a nc e Sh e e t D a t a ( a t e nd of ye a r)
(a)
(continu e d)
$
$
$
$
331,938 $
155,199
(795,281)
294,904
300,499 $
217,295
(816,175)
925,181
328,055 $
236,238
(457,950)
253,682
267,061 $
186,957
(38,936)
(138,429)
195,592
124,095
(41,722)
(80,067)
Represe nts incom e a nd incom e per sh are b efore extra ordin ar y loss as if St a te m e nt of Fin a nci a l A ccounting St a nd ards N o. 1 4 2 “ G oodwill a nd O th er Int a ngibles” were effe ctive Ja nu ar y 1 , 1 9 9 8 .
A ll com mon-sh are a nd per-com mon-sh are a mounts h ave b e e n a djuste d retro a ctively for a two-for-on e com mon-stock split effe ctive A ugust 1 1 , 2 0 0 0 .
EBIT D A , d efin e d as e arnings b efore interest, t axes, d epre ci a tion a nd a mortiz a tion , is th e su m of opera ting incom e plus d epre ci a tion a nd a mortiz a tion . U nivision C om m unic a tions Inc. h as includ e d EBIT D A d a t a
bec a use such d a t a is com monly used as a m e asure of per form a nce for bro a dc ast comp a nies a nd is a lso used by investors to m e asure a comp a ny ’s a bility to service debt a nd other c ash ne eds. EBIT D A is not, a nd
should not b e use d as, a n indic a tor of or a n a ltern a tive to opera ting incom e , n et incom e or c ash flow as refle cte d in th e C onsolid a te d Fin a nci a l St a te m e nts, is not a m e asure of fin a nci a l per for m a nc e und er g e n era lly a cc epte d a ccounting principles a nd should not b e consid ere d in isol a tion or as a substitute for m e asures of per for m a nc e prep are d in a ccord a nc e with g e n era lly a cc epte d a ccounting principles. Sinc e
th e d efinition of EBIT D A m ay var y a mong comp a nies a nd industries, it should not b e use d as a m e asure of per for m a nc e a mong comp a nies. For th e re concili a tion of opera ting incom e to EBIT D A , refer to
M a n a g e m e nt’s D iscussion a nd A n a lysis of Fin a nci a l C ondition a nd Results of O pera tions in th e A nnu a l Report on For m 1 0-K for U nivision C om m unic a tions Inc.
2 0 0 2 Annual Report
Pa g e 3 1
Condensed Consolid ated Bala nce Sheets
Condensed Consolid ated Bala nce Sheets
Univision Communications Inc.
Univision Communications Inc.
(In th o us a n ds, exc e pt sh a r e a n d p er-sh a r e d a t a )
D e c e m b er 3 1 ,
2 0 0 2
2 0 0 1
$ 160,433
2,140
20,550
11,794
4,250
18,647
5,408
223,222
$ 120,021
20,334
18,348
10,562
4,250
4,135
92,030
269,680
1,353,312
—
78,921
9,710
32,909
115,500
30,734
1,844,308
985,509
592,175
84,334
13,960
10,919
20,500
18,530
1,995,607
—
369,500
—
—
Li a biliti es a nd Stockhold ers’ Equity
Current liabilities:
Accounts payable and accrued liabilities
Income taxes
Accrued interest
Accrued license fees
Deferred advertising revenues
Program rights obligations
Current portion of long-term debt and capital lease obligations
Total current liabilities
(In th o us a n ds, exc e pt sh a r e a n d p er-sh a r e d a t a )
D e c e m b er 3 1 ,
2 0 0 2
2 0 0 1
Asse ts
Current assets:
C ash
Accounts receivable, less allowance for doubtful accounts and returns of $29,643 in 2002
and $11,492 in 2001
Program rights
Deferred tax assets
Prepaid expenses and other
Total current assets
Property and equipment, net, less accumulated depreciation of $202,603 in 2002
and $142,661 in 2001
Intangible assets, net, less accumulated amortization of $166,869 in 2002
and $148,769 in 2001
Goodwill, net, less accumulated amortization of $189,088 in 2002 and 2001
Deferred financing costs, net, less accumulated amortization of $5,593 in 2002
and $1,747 in 2001
Program rights
Investments in unconsolidated subsidiaries
O ther assets
Total assets
(continu e d)
Pa g e 3 2
$
35,651
$ 380,829
238,587
36,453
14,584
59,683
162,592
22,653
14,843
30,019
384,958
610,936
477,854
445,483
1,425,168
506,411
1,242,835
289,260
17,260
36,700
517,176
36,869
20,935
18,862
535,777
14,299
$3,402,396
$3,178,387
Long-term debt including accrued interest
N otes payable due USA Broadcasting
C apital lease obligations
Deferred advertising revenues
Program rights obligations
Deferred tax liabilities
O ther long-term liabilities
Total liabilities
Redeemable convertible preferred stock, $.01 par value, with a conversion rate of 28.252 to
Class A Common Stock (375,000 shares issued and outstanding at December 31, 2001)
Stockholders’ equity:
Preferred stock, $.01 par value (10,000,000 shares authorized; 0 issued and outstanding)
Common stock, $.01 par value (492,000,000 shares authorized; 229,129,275 and 210,479,125 shares
issued including shares in treasury at December 31, 2002 and 2001, respectively)
Paid-in-capital
Retained earnings
Currency translation adjustment
Less common stock held in treasury (1,017,180 shares at cost at December 31, 2002 and 2001)
Total stockholders’ equity
Total liabilities and stockholders’ equity
2,291
1,219,884
358,011
95
1,580,281
(22,193)
1,558,088
$3,402,396
2,105
561,860
271,508
—
835,473
(22,193)
813,280
$3,178,387
T h e C ond e nse d C onsolid a te d Fin a nci a l St a te m e nts should b e re a d in conn e ction with th e Fin a nci a l St a te m e nts a nd N otes to C onsolid a te d Fin a nci a l St a te m e nts prese nte d in th e A nnu a l Report on For m 1 0-K for
U nivision C om m unic a tions Inc.
2 0 0 2 Annual Report
2 0 0 2 Annual Report
Pa g e 3 3
Condensed Consolid ated Statements of Income
C ond e nse d C onsolid a te d St a te m e nts of C h a ng es in Stockhold ers’ Equity
Univision Communications Inc.
Univision Communications Inc.
(In th o us a n ds, exc e pt sh a r e a n d p er-sh a r e d a t a )
For th e ye a rs e n d e d D e c e m b er 3 1 ,
N et revenues
Direct operating expenses (excluding depreciation expense)
Selling, general and administrative expenses (excluding depreciation expense)
Depreciation and amortization
2 0 0 2
$ 1,091,293
471,395
287,960
78,818
O perating income
Interest expense, net
Amortization of deferred financing costs
Equity loss in unconsolidated subsidiaries and other
G ain on change in Entravision ownership interest
Income before taxes and extraordinary loss on extinguishment of debt
Provision for income taxes
Income before extraordinary loss on extinguishment of debt
Extraordinary loss on extinguishment of debt, net of tax
N et income
Preferred stock dividends/accretion
N et income available to common stockholders
2 0 0 1
$
887,870
355,761
231,610
84,069
2 0 0 0
$
863,459
312,381
223,023
66,765
253,120
87,233
3,846
15,907
(1,898)
148,032
61,504
216,430
53,463
2,488
47,449
(4,552)
117,582
62,865
261,290
30,097
1,361
4,828
—
225,004
108,081
86,528
—
86,528
(25)
54,717
(2,306)
52,411
(70)
116,923
—
116,923
(518)
$
86,503
$
Income per share available to common stockholders before extraordinary loss
Extraordinary loss per share
N et income per share available to common stockholders
$
0.39
—
0.39
$
Weighted average common shares outstanding
224,344,335
52,341
$
116,405
0.26 $
(0.01)
0.25 $
0.57
—
0.57
B a si c E a r n i n gs Per Sh a r e
$
$
208,110,727
204,893,438
D i l u t e d E a r n i n gs Per Sh a r e
Income per share available to common stockholders before extraordinary loss
Extraordinary loss per share
N et income per share available to common stockholders
$
Weighted average common shares outstanding
256,337,046
$
0.34
—
0.34
$
$
0.23 $
(0.01)
0.22 $
239,817,378
0.49
—
0.49
238,963,587
T h e C ond e nse d C onsolid a te d Fin a nci a l St a te m e nts should b e re a d in conn e ction with th e Fin a nci a l St a te m e nts a nd N otes to C onsolid a te d Fin a nci a l St a te m e nts prese nte d in th e A nnu a l Report on For m 1 0-K for
U nivision C om m unic a tions Inc.
Pa g e 3 4
2 0 0 2 Annual Report
A c c u m ul a t e d
O th er
Comprehensive
In c o m e
Common
Sto c k
Pa id-i nC a pit a l
Balance, January 1, 2000
N et income for the year
Preferred stock dividends declared
Conversion of redeemable convertible 6% preferred stock
Exercise of stock options including related tax benefits
$2,043
—
—
4
24
$ 426,375
—
—
2,996
66,856
$102,762
116,923
(518)
—
—
$(17,402)
—
—
—
(4,791)
$ —
—
—
—
—
$ 513,778
116,923
(518)
3,000
62,089
Balance, December 31, 2000
N et income for the year
Preferred stock dividends declared
Conversion of redeemable convertible 6% preferred stock
Exercise of stock options including related tax benefits
2,071
—
—
7
27
496,227
—
—
5,993
59,640
219,167
52,411
(70)
—
—
(22,193)
—
—
—
—
—
—
—
—
—
695,272
52,411
(70)
6,000
59,667
Balance, December 31, 2001
N et income for the year
Currency translation adjustment income
2,105
—
561,860
—
271,508
86,528
(22,193)
—
—
—
95
813,280
86,528
95
—
106
60
20
25
369,339
235,040
53,620
—
—
—
—
86,623
—
369,445
235,100
53,640
$2,291
$1,219,884
$95
$1,558,088
(In th o us a n ds)
For th e ye a rs e n d e d D e c e m b er 3 1 , 2 0 0 0 , 2 0 0 1 a n d 2 0 0 2
Comprehensive income
Preferred stock dividend accretion
Conversion of redeemable convertible 6% preferred stock
Issuance of common stock for Fonovisa acquisition
Exercise of stock options including related tax benefits
Balance, December 31, 2002
Re t a i n e d
E a r ni n gs
Common
Sto c k i n
Tr e a sur y
(25)
—
—
—
$358,011
—
—
—
—
$(22,193)
Tot a l
T h e C ond e nse d C onsolid a te d Fin a nci a l St a te m e nts should b e re a d in conn e ction with th e Fin a nci a l St a te m e nts a nd N otes to C onsolid a te d Fin a nci a l St a te m e nts prese nte d in th e A nnu a l Report on For m 1 0-K for
U nivision C om m unic a tions Inc.
2 0 0 2 Annual Report
Pa g e 3 5
C onde nsed C onsolid a ted St a te m e nts of C ash F lows
C onde nsed C onsolid a ted St a te m e nts of C ash F lows
Univision Communications Inc.
Univision Communications Inc.
(In th o us a n ds)
For th e ye a rs e n d e d D e c e m b er 3 1 ,
N et income
Adjustments to reconcile net income to net cash from operating activities:
Depreciation
(G ain) Loss on sale of fixed assets
G ain on sale of television station
Equity loss in unconsolidated subsidiaries
Deferred income taxes
Amortization of intangible assets and financing costs
Non-cash items
Extraordinary loss on extinguishment of debt, net of tax
Changes in assets and liabilities:
Accounts receivable
License fees payable
Payment of license fees
Program rights
Prepaid expenses and other assets
Accounts payable and accrued liabilities
Income taxes
Income tax benefit from options exercised
Accrued interest
Program rights obligations
O ther, net
N et cash provided by operating activities
2 0 0 2
2 0 0 1
2 0 0 0
$ 86,528
$ 52,411
$ 116,923
60,718
(34)
(275)
14,277
58,629
22,273
(4,250)
—
43,100
137
—
42,589
13,439
43,596
(3,040)
2,306
28,028
1
—
4,828
5,533
40,098
—
—
(51,245)
130,802
(129,570)
(31,638)
(35,871)
3,360
(33,155)
23,597
12,609
36,502
(8,058)
(10,961)
125,926
(127,921)
124
(13,017)
(13,009)
398
30,261
27,121
3,734
101
(13,081)
127,441
(124,451)
(26,441)
(16,785)
27,693
16,995
41,401
9,140
(858)
(227)
155,199
217,295
236,238
(In th o us a n ds)
(679,175)
(24,047)
(92,284)
—
225
(529,009)
(175,807)
(130,188)
19,385
(556)
—
(393,292)
(64,669)
—
11
N et cash used in investing activities
(795,281)
(816,175)
(457,950)
Pa g e 3 6
N et cash provided by financing activities
N et (decrease) increase in cash
Cash beginning of year
Cash flow from investing activities:
Station acquisitions
Investment in unconsolidated subsidiaries
Capital expenditures
Proceeds from dissolution of investment in Ask Jeeves en Español, Inc.
O ther, net
(continu e d)
C ash flow from financing activities:
Proceeds from issuance of long-term debt
Proceeds from senior notes
Proceeds from preferred stock
Repayment of junior subordinated notes
Repayment of long-term debt
Exercise of stock options
Preferred stock dividends paid
Deferred financing costs
For th e ye a rs e n d e d D e c e m b er 3 1 ,
2 0 0 2
2 0 0 1
694,476
—
—
(97,477)
(331,966)
30,042
—
(171)
2 0 0 0
1,217,350
495,370
375,000
—
(1,167,686)
27,889
(130)
(22,612)
390,000
—
—
—
(155,814)
20,688
(547)
(645)
294,904
925,181
253,682
(345,178)
380,829
326,301
54,528
31,970
22,558
Cash end of year
$ 35,651
$
380,829
$ 54,528
Supplemental disclosure of cash flow information:
Interest paid
Income taxes paid
$ 110,491
$ 16,564
$
$
29,116
18,946
$ 20,657
$ 43,910
T h e C ond e nse d C onsolid a te d Fin a nci a l St a te m e nts should b e re a d in conn e ction with th e Fin a nci a l St a te m e nts a nd N otes to C onsolid a te d Fin a nci a l St a te m e nts prese nte d in th e A nnu a l Report on For m 1 0-K for
U nivision C om m unic a tions Inc.
2 0 0 2 Annual Report
2 0 0 2 Annual Report
Pa g e 3 7
Bo a rd of D ir e ctors
Exe cutive O ffic ers
Corporate Inform ation
C orpora te H e a dqu arters
Ind epe nd e nt A uditors
U nivision Communications Inc.
1999 Avenue of the Stars
Suite 3050
Los Angeles, C A 90067
(310) 556 -7676
Ernst & Young LLP
5 Times Square
N ew York, N Y 10036 - 6530
A . Jerrold Pere nchio
A l a n F. H orn
A . Jerrold Pere nchio
Chairm an of the Board and
Chief Executive O fficer
President and
Chief O perating O fficer
Chairm an of the Board and
Chief Executive O fficer
Univision Communications Inc.
Warner Bros.
E milio Azc árra g a Je a n
John G . Pere nchio
Vice Chairm an of the Board
President
Univision Communications Inc.
Ultimatum Music, LLC
Chairm an, President and
Chief Executive O fficer
Executive
Ray Rodrigu ez
Chartwell Services, Inc.
President and
Chief O perating O fficer
A lej a ndro Rivera
Univision N etwork
Rob ert V. C a hill
Grupo Televisa, S.A.
Vice Chairm an and
Secretary of the Corporation
Ray Rodrigu ez
Director and President
TeleFutura N etwork
President and
Chief O perating O fficer
Venevision International Corporation
G alavisión
Univision N etwork
Ju a n Vill a long a
G eorg e W. Bl a nk
TeleFutura N etwork
Private Investor
Executive Vice President and
Chief Financial O fficer
G alavisión
A lt ern a t e D ire c tors
H arold G a b a
President and
Chief Executive O fficer
ACT III Communications
Holdings, L.P.
A ndrew W. H obson
A lfonso d e A ngoiti a
Executive Vice President and
Chief Financial O fficer
Grupo Televisa, S.A.
Victor M . Ferreres Pa lou
President of Venevision N etwork and
Station Group
Corporación Venezolana de Television, C.A.
(VENEVISIO N )
Pa g e 3 8
2 0 0 2 Annual Report
Executive Vice President
C . D ougl as Kra nwinkle
Executive Vice President and
G eneral Counsel
Tra nsfer A g e nt a nd Re gistrar
The Bank of N ew York
Stockholder Relations
Church Street Station
P. O. Box 11258
N ew York, N Y 10286 -1258
(800) 524 - 4458
T he C l ass A C om mon Stock of U nivision C om munic a tions Inc.
(“ U nivision”) is listed on the N ew York Stock Exchange under the symbol
“ U V N .” As of February 13, 2003, there were 212 Class A, five Class P,
two Class T and two Class V stockholders of record.
N o cash dividends were paid on any class of U nivision’s common stock
in 2001 or 2002. U nivision has a bank facility that restricts the payment of
cash dividends on the common stock.
Stock Pric es
Below are the N ew York Stock Exchange high and low sales prices (a) of
U nivision’s Class A Common Stock for e ach quarter of 2002 and 2001.
2002
Po s t - S p l i t Pr i c e s
2001
High
Low
High
Low
$32.25
First Q uarter
$47.00
$32.25
$52.25
Second Q uarter
$44.89
$26.40
$47.10
$33.50
Third Q uarter
$31.92
$16.40
$43.42
$16.30
Fourth Q uarter
$33.48
$19.97
$41.71
$22.73
(a)
T h e hig h a n d low s a l es pric es a r e b a se d on intr a d a y tr a din g .
Annual Report on Form 10-K
You m ay obtain a copy of the Annual Report on Form 10-K for
U nivision Communications Inc. without charge through U nivision’s corporate
he adquarters.
For w ard-Looking St a te m e nts
This annual report contains forward-looking statements that involve risks
and uncertainties, including those relating to U nivision’s future success and
growth. A ctual results m ay differ m aterially due to risks and uncertainties as
described in U nivision’s filings with the Securities a nd Exch a nge
Commission. U nivision assumes no obligation to update forward-looking
inform ation contained in this annual report.
2 0 0 2 Annual Report
Pa g e 3 9
In M emoria m
We offer tribute to our colle a gu e ,
Antonio (Tony) O quendo, Senior Vice
President and O perating M anager for
Tele Futura N etwork, who died suddenly
on June 6, 2002. As a part of the
U nivision fa mily for more than 20 ye ars,
Photographs featured in this annual report are reprinted with permission. Front cover: Courtyard, Casa del Conde del Valle de Súchil, Durango, Durango; page 3: Façade (detail), Casa de Montejo, Mérida, Yucatán;
page 11: Façade, Palacio de Iturbide, México, D.F. ; page 16: Interior Detail, Casa del Conde del Valle de Súchil, Durango, Durango. Property of: Banco N acional de México, S.A. Photos by: Fernando Cordero – Fomento
| page 5: Palacio Episcopal de Astorga; page 23: Parc Güell, Photography by Marc Llimargas, taken from G audí, The Man and His Work, A Bulfinch Press Book originally published in Spanish
| page 12: Castle of Tulum © 1986 1988 Norman F. Carver, Jr., Silent Cities of Mexico and the Maya | pages 14-15: Biblioteca Central de Monterrey, Photograph courtesy of Lourdes Legorreta
| page 19: Machu Picchu © Barry Brukoff 2001 Machu Picchu , Bulfinch Press | pages 20-21: Temple of Sondor, from the book Realm of the Incas by Max Milligan.
Cultural Banamex, A.C.
by Lunwerg Editores
Pa g e 4 0
2 0 0 2 Annual Report
Tony m ade important contributions to
the form ation and operation of our three
television networks. H e is gre atly missed.