BCE Mobile Announces Fourth Quarter 1995 Results.MONTREAL Montreal (mŏn'trēôl`), Fr. Montréal (môNrāäl`), city (1991 pop. 1,017,666), S Que., Canada, on Montreal island, surrounded by St. Lawrence River and Rivière des Prairies. , Pq--(BUSINESS WIRE)--Jan. 22, 1996--BCE MOBILE(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). ,ME:BCX BCX Beloreck (Russia) ) BCE BCE abbr. 1. Bachelor of Chemical Engineering 2. Bachelor of Civil Engineering BCE Abbreviation for before the Common Era. Mobile Communications Inc. (BCE Mobile) today announced its unaudited financial results for the fourth quarter and year 1995. -0-
Fourth Quarter Year
($ millions) 1995 1994 1995 1994
Net income $ 12.9 $ 9.0 $ 51.0 $ 36.6
Revenues 219.5 164.1 781.0 614.6
Operating income - before
depreciation &
amortization 66.2 54.7 265.7 221.5
-0- NET INCOME The corporation reported a 43 percent increase in net income for the quarter to $12.9 million ($0.19 per share) from to $9.0 million ($0.13 per share) one year ago. For the year, net income was up 39 percent to $51.0 million ($0.74 per share) from $36.6 million in 1994 ($0.53 per share). Cellular service and paging operations were responsible for the increase in the year. Excluding special items reported in 1994 (a gain on sale and provisions for assets with shortened short·en v. short·ened, short·en·ing, short·ens v.tr. 1. To make short or shorter. 2. life expectancies Life Expectancy 1. The age until which a person is expected to live. 2. The remaining number of years an individual is expected to live, based on IRS issued life expectancy tables. ), net income in 1995 grew some 37 percent from the adjusted 1994 figure of $37.2 million. Said Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. Ferchat, BCE Mobile chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , "BCE Mobile has again proven that in our business, substantial subscriber subscriber, n the person, usually the employee, who represents the family unit in relation to the prepayment plan. Other family members are dependents. Also called certificate holders or enrollees. and revenue growth can be delivered at the same time as strong earnings growth. Our cellular subscriber base grew 35 percent in 1995; net income grew even faster." REVENUES & EXPENSES Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: revenues for the quarter were $219.5 million, an increase of 34 percent over the fourth quarter of 1994. For the year to date, revenues were $781.0 million or 27 percent higher than in 1994. The increases were due mainly to higher contributions from cellular and paging services and from equipment sales. Consolidated revenues and operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , as well as the corresponding figures for cellular service operations, reflect the decision by Bell Mobility Cellular to discontinue dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: recording free air time associated with promotions both as a revenue and an offsetting expense item. As a result, revenues and operating expenses have been reduced by some $20.2 million in 1995. Data in prior periods have been reduced to be consistent with the treatment adopted in 1995. This reclassification Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. has no impact on operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. before depreciation and amortization, operating income or net income reported in 1995 or in prior years. The 1994 impact on revenues and operating expenses was a reduction of some $21.2 million. OPERATING CASH FLOW Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. & MARGIN Consolidated operating cash flow (operating income before depreciation and amortization) for the three months ended December December: see month. 31, 1995 was $66.2 million, up 21 percent from the $54.7 million reported in the fourth quarter of 1994. For the year, the figure was $265.7 million, some 20 percent higher than the $221.5 million reported for 1994. Cellular service was responsible for the increases in both the quarter and the year. BCE Mobile's consolidated operating cash flow margin for the quarter was 30 percent compared to 33 percent for the fourth quarter of 1994. The margin for cellular service was 40 percent for the quarter compared to 43 percent last year. On a year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. basis, the cellular margin stood at 43 percent compared to 45 percent one year ago. The decrease in the cellular margin was due to higher selling expenses relative to service revenues. CONTRIBUTIONS TO REVENUES The quarterly revenue contribution of cellular service operations increased 32 percent from $123.7 million to $163.1 million reflecting significant growth in the subscriber base, partly offset by lower revenue per subscriber. Cellular subscribers numbered some 798,000 at December 31, 1995, an increase of 94,000 from September September: see month. 30, 1995 and 206,000 or 35 percent since December 31,1994. Churn churn: see butter. (the rate of subscriber deactivation de·ac·ti·vate tr.v. de·ac·ti·vat·ed, de·ac·ti·vat·ing, de·ac·ti·vates 1. To render inactive or ineffective. 2. To inhibit, block, or disrupt the action of (an enzyme or other biological agent). 3. ) during the fourth quarter of 1995 averaged 1.3 percent per month compared to 1.1 percent in Q4 1994. BCE Mobile and the other cellular affiliates of the Canadian telephone companies This is a list of telephone companies in Canada. ILECs, Incumbent Local Exchange Carriers, are indicated with a *.
of a point on a graph or grid map, the points on the horizontal and vertical axes which identify the location of the point on the graph/map. the delivery of national cellular service on their behalf. Mobility Canada cellular subscribers numbered 1,536,000 at December 31, 1995. Based on the latest available public data (September 30, 1995) Mobility Canada held some 60 percent of the Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. cellular market. Paging services contributed $15.7 million to quarterly consolidated revenues compared to $13.0 million in 1994. For the year, paging service revenues increased some 20 percent to $59.0 million. The increase in both periods was due mainly to growth in the number of pagers in service. Pagers in service numbered some 275,000, 12,000 higher than at the end of the third quarter of 1995 and 55,000 or 25 percent higher than at the end of 1994. Revenues from equipment sales and other operations totaled $42.4 million for the quarter, up from $28.6 million in 1994. For the year, their contribution increased from $102.9 million to $129.1 million. Cellular equipment sales were responsible for the increase in both the quarter and the year to date. CLEARNET Clearnet may refer to:
On January January: see month. 5, 1996 BCE Mobile completed the sale of its investment in Clearnet Communications Inc. and as a result, an after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. gain on the sale of some $51 million will be reported in the first quarter of 1996. PCS (1) (Personal Communications Services) Refers to wireless services that emerged after the U.S. government auctioned commercial licenses in 1994 and 1995. This radio spectrum in the 1. In December 1995, Industry Canada Industry Canada is the department of the Government of Canada with responsibility for regional economic development, investment, and innovation/research and development. The department employs 6104 FTEs across Canada. awarded licenses for PCS services at 1.9 GHz to the shareholders of Mobility Canada, including BCE Mobile, and to three other companies. During the first quarter of 1996, BCE Mobile plans to review certain of its business practices to ensure that they are appropriate for the more competitive environment which is expected to develop when PCS services become available later this year. BCE Mobile is the Canadian leader in mobile communications. Its subsidiaries, operating under the Bell Mobility banner Same as banner ad. 1. banner - The title page added to printouts by most print spoolers. Typically includes user or account ID information in very large character-graphics capitals. , provide cellular, paging, data and airline passenger communications services and are involved in the sale of cellular hardware and private radio systems. BCE Mobile is a publicly traded subsidiary of BCE Inc. -0-
STATEMENTS OF INCOME
(unaudited unless indicated otherwise)
Three months Twelve months
ended Dec. 31 ended Dec. 31
($ 000) 1995 1994 1995 1994
(audited)
Revenues
Cellular service 163,067 123,652 597,898 466,833
Paging service 15,681 13,037 58,995 49,066
Equipment sales
& other operations 42,396 28,601 129,122 102,857
Intercompany
eliminations (1,610) (1,176) (4,988) (4,161)
-------- -------- -------- --------
219,534 164,114 781,027 614,595
Cost of revenue 68,130 43,291 218,028 171,162
Selling expense 52,088 33,510 174,525 114,912
Administrative expense 33,147 32,610 122,774 107,045
-------- -------- -------- --------
Operating income before
depreciation &
amortization 66,169 54,703 265,700 221,476
Depreciation &
amortization 37,452 30,752 147,647 119,544
-------- -------- -------- --------
Operating income before
undernoted items 28,717 23,951 118,053 101,932
Interest expense (8,513) (8,241) (33,928) (35,048)
Gain on sale of investment 0 15,257 0 15,257
Other items 547 (16,561) 2,377 (15,966)
-------- -------- -------- --------
Income before income taxes 20,751 14,406 86,502 66,175
Income taxes
- current 19,647 202 20,881 2,795
deferred (11,772) 5,198 14,578 26,755
-------- -------- -------- --------
7,875 5,400 35,459 29,550
Net income 12,876 9,006 51,043 36,625
-------- -------- -------- --------
-------- -------- -------- --------
Earnings per
common share (dollars) $0.19 $0.13 $0.74 $0.53
Average number of common shares outstanding 69,330 69,276 69,305 69,265
BALANCE SHEETS
December 31 December 31
($ 000) 1995 1994
(unaudited) (audited)
Assets
Current assets
Cash & temporary cash 61,204 0
investments
Accounts receivable 145,909 131,295
Inventories 20,738 13,368
Prepaid expenses & other
current assets 34,929 19,204
------- -------
262,780 163,867
Investments 80,062 26,382
Fixed assets - net 730,072 644,004
Licenses and permits 27,674 29,519
Other assets 32,605 31,365
-------- -------
1,133,193 895,137
--------- -------
--------- -------
Liabilities
Current liabilities
Bank overdraft 0 5,977
Accounts payable 179,212 124,909
Due to related companies 9,412 6,640
Deferred revenue 21,356 23,782
Debt due within one year 0 351
--------- -------
209,980 161,659
Long-term debt 429,000 297,477
Deferred income taxes 5,583 964
Other liabilities 5,166 4,110
--------- -------
649,729 464,210
--------- -------
Shareholders' Equity
Share capital and contributed 470,308 468,814
surplus
Retained earnings (deficit) 13,156 (37,887)
--------- -------
483,464 430,927
--------- --------
1,133,193 895,137
--------- --------
--------- --------
STATEMENTS OF CHANGES IN FINANCIAL POSITION
(unaudited unless indicated otherwise)
Three months Twelve months
ended Dec. 31 ended Dec. 31
($ 000) 1995 1994 1995 1994
(audited)
Operating activities
Net income 12,876 9,006 51,043 36,625
Items not affecting cash
Depreciation & amortization 37,452 30,752 147,647 119,544
Deferred income taxes (11,772) 5,198 14,578 26,755
Other items 1,145 3 (316) 1,010
------- ------ ------- ------
Cash flow from operations 39,701 44,959 212,952 183,934
Decrease (increase) in def.
charges 290 52 (1,901) 348
Change in working capital 41,072 4,505 21,335 (2,023)
------- ------ ------- -------
81,063 49,516 232,386 182,259
------- ------ ------- -------
Financing activities
Increase (decrease) in debt 2,989 (31,682) 131,172 (75,153)
Issue of share capital 374 287 1,494 873
Other 2,810 907 2,911 1,832
------- ------ ------- ------
6,173 (30,488) 135,577 (72,448)
Investing activities Capital expenditures (97,210)(50,737)(242,381)(127,091)
Proceeds of sale 3,044 17,600 3,044 19,322
Investments & acquisitions (44,990) (3,366) (62,381) (8,728)
Other 744 30 936 349
------- ------ ------- ------
(138,412)(36,473)(300,782)(116,148)
Increase (decrease) in cash
(deficiency) (51,176)(17,445) 67,181 (6,337)
Opening cash (deficiency) 112,380 11,468 (5,977) 360
------- ------ ------- ------
Closing cash (deficiency) 61,204 (5,977) 61,204 (5,977)
------- ------ ------- ------
------- ------ ------- ------
Cash (deficiency) defined as:
Cash and temporary cash
investments 86,215 9,538 86,215 9,538
Bank overdraft (25,011)(15,515) (25,011)(15,515)
------- ------ ------- -------
61,204 (5,977) 61,204 (5,977)
------- ------ ------- -------
CONTACT: BCE MOBILE John Gutpell, 514/956-4827 |
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