BCE Mobile Reports 50 Percent Earnings Growth - Appoints New CFO.MONTREAL--(BUSINESS WIRE)--April 21, 1997--BCE MOBILE (ME;TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). 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 first quarter 1997. -0-
First Quarter
_____________________
1997 1996 1996
($ millions) (adjusted(1))
Net income - excluding
non-recurring items $ 18.0 $ 11.9 $ 12.0
Revenues 248.1 196.3 196.3
EBITDA 88.0 68.3 68.5
(000)
Cellular subscribers 1,073 823
(March 31)
Pagers in service (March 31) 412 282
(1) adjusted to expense hardware costs as incurred
NET INCOME Net income for the quarter was $18.0 million ($0.26 per share) or some 50 percent higher than the adjusted figure of $12.0 million ($0.17 per share) for the first quarter of 1996. A higher contribution from cellular operations, supported by record low churn churn: see butter. levels, was responsible for the increase. The 1996 adjusted data include the impact of a change in accounting treatment for the cost of hardware included in cellular rate packages as if the new treatment had been in effect in 1996. Earlier this year, the corporation announced that it had decided, effective January January: see month. 1, 1997, to expense these costs fully as they are incurred rather than amortize amortize To write off gradually and systematically a given amount of money within a specific number of time periods. For example, an accountant amortizes the cost of a long-term asset by deducting a portion of that cost against income in each period. them over 12 to 18 months as it had done in the past. Reported earnings for the first quarter of 1996 were some $43.3 million, which included a $51.3 million (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 sale of BCE Mobile's remaining interest in Clearnet Clearnet may refer to:
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. , "We are very pleased with both our operating and financial results this quarter. Churn continues to be maintained at record low levels and our 50 percent growth in earnings was achieved while investing in 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. which will be launched later this year." SUBSCRIBERS Cellular subscribers numbered some 1,073,000 at March 31, 1997, an increase of 29,000 from December December: see month. 31, 1996 and 250,000 or 30 percent since March 31, 1996. Churn (the rate of 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. 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 first quarter of 1997 averaged 1.1 percent per month compared to 1.4 percent in the first quarter of 1996. Pagers in service numbered 412,000, some 16,000 higher than at December 31, 1996 and 130,000 or 46 percent higher than at March 31, 1996. Included in the annual pager growth data are 48,000 pagers acquired in 1996 from TeleZone Corporation and Reseau ré·seau or re·seau n. pl. réseaus or réseaux 1. A net or mesh foundation for lace. 2. Astronomy Uni- uni- word element [L.], one. uni- pref. Single; one: univalent. uni- word element. [L.] one. Page Inc. REVENUES Consolidated revenues for the quarter were $248.1 million, an increase of 26 percent over the first quarter of 1996. The quarterly revenue contribution of cellular service operations increased 19 percent from $157.4 million to $187.2 million reflecting growth in the subscriber base, partly offset by lower revenue per subscriber. Paging services contributed $17.1 million to quarterly consolidated revenues compared to $15.8 million in 1996, an increase of 8 percent. The increase was due to growth in the number of pagers in service, partly offset by lower revenue per pager. Revenues from equipment sales and other operations totaled $43.8 million for the quarter, up 90 percent from $23.1 million in 1996. Cellular product sales were responsible for most of the gain. This level of year-over-year increase is not expected to continue in future quarters. 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 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 (EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ) for the three months ended March 31, 1997 was $88.0 million, compared to an adjusted figure of $68.5 million for the first quarter of 1996. The adjustment relates to the change in the accounting treatment for cellular hardware costs. Cellular service was responsible for the increase in the quarter. BCE Mobile's consolidated operating cash flow margin for the quarter was 35 percent, unchanged from the adjusted figure for the first quarter of 1996. The margin for cellular service was 46 percent for the quarter compared to 43 percent last year. CAPITAL EXPENDITURES AND OTHER Capital expenditures were some $90.2 million compared to $43.3 million in the first quarter of 1996. The increase related to expenditures for the corporation's digital PCS network. The corporation has also taken steps to reduce its inventory levels, from $44.2 million at the end of 1996 to $31.0 million at the end of the first quarter. DAVID David, in the Bible David, d. c.970 B.C., king of ancient Israel (c.1010–970 B.C.), successor of Saul. The Book of First Samuel introduces him as the youngest of eight sons who is anointed king by Samuel to replace Saul, who had been deemed a failure. LAZZARATO APPOINTED CFO See Chief Financial Officer. The corporation also announced the appointment, effective May 1, 1997, of David A. Lazzarato as Senior Vice-President vice president or vice-pres·i·dent n. Abbr. VP 1. An officer ranking next below a president, usually empowered to assume the president's duties under conditions such as absence, illness, or death. 2. and Chief Financial Officer, replacing Pierre Pierre (pēr), city (1990 pop. 12,906), state capital (since 1889) and seat of Hughes co., central S.Dak., on the east bank of the Missouri River, opposite Fort Pierre; inc. 1883. Lessard Lessard is a surname, and may refer to:
This page or section lists people with the surname Lessard. . Mr. Lazzarato is currently the Vice-President and Controller of BCE Inc., having joined BCE in 1994. Prior to that, he was Senior Vice-President, Finance and Administration at CAE (1) (Computer-Aided Engineering) Software that analyzes designs which have been created in the computer or that have been created elsewhere and entered into the computer. Electronics Ltd. BCE Mobile is 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. leader in wireless communications wireless communications System using radio-frequency, infrared, microwave, or other types of electromagnetic or acoustic waves in place of wires, cables, or fibre optics to transmit signals or data. . Its subsidiaries, operating under the Bell Mobility banner, provide cellular, paging, data, airline passenger and satellite 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.
STATEMENTS OF INCOME
(unaudited)
Three months
ended March 31
($ 000) 1997 1996
____ ____
Revenues
Cellular service 187,162 157,365
Paging service 17,124 15,820
Equipment sales & other 43,806 23,149
_______ ________
248,092 196,334
Cost of revenue 72,787 49,881
Selling expense 44,141 42,313
General and administrative
expense 43,163 35,867
_______ ________
Operating income before
depreciation, amortization
& special charges 88,001 68,273
Depreciation &
amortization 47,176 47,937
Special charges 0 16,250
_______ _______
Operating income before
undernoted items
40,825 4,086
Interest expense (9,624) (10,217)
Gain on sale of investment 0 60,356
Other - net (176) (3,966)
_______ _______
Income before income taxes 31,025 50,259
Income taxes - current 11,457 6,589
- deferred 1,546 400
_______ _______
13,003 6,989
_______ _______
Net income 18,022 43,270
_______ _______
Earnings per common
share (dollars) 0.26 0.62
_______ ______
Net income - US GAAP 18,656 40,212
Earnings per common
share - US GAAP (dollars) 0.27 0.58
Average number of
common shares
outstanding (thousands) 69,353 69,342
BALANCE SHEETS
March 31 December 31
($ 000) 1997 1996
____________ ___________
(unaudited) (audited)
Assets
Current assets
Accounts receivable 166,820 179,195
Inventories 31,027 44,213
Prepaid expenses & other
current assets 35,417 14,079
_________ _______
233,264 237,487
Fixed assets - net 940,399 895,618
Investments & other assets 136,052 136,162
__________ _________
1,309,715 1,269,267
__________ _________
Liabilities
Current liabilities
Bank overdraft 5,539 9,639
Accounts payable 159,888 236,406
Due to related companies 39,354 10,659
Deferred revenue 33,155 40,638
Debt due within one year 6,162 6,113
__________ ________
244,098 303,455
Long-term debt 498,012 417,277
Other liabilities 1,509 691
__________ ________
743,619 721,423
Shareholders' Equity
Share capital and contributed
surplus 470,982 470,752
Retained earnings 95,114 77,092
__________ ________
566,096 547,844
__________ ________
1,309,715 1,269,267
__________ _________
STATEMENTS OF CHANGES IN FINANCIAL POSITION
(unaudited)
Three months
ended March 31
($ 000) 1997 1996
____ ____
Operating activities
Net income 18,022 43,270
Items not affecting
cash
Depreciation and
amortization 47,176 47,937
Deferred income
taxes 1,546 400
Gain on sale
of investment 0 (60,356)
Special charges 0 16,250
Other 320 5,261
______ ______
Cash flow from
operations 67,064 52,762
Increase in deferred
charges (431) (87)
Change in working
capital (51,083) (36,085)
______ ______
15,550 16,590
Financing activities
Increase (decrease)
in debt 80,784 (410)
Issue of share capital 230 142
Other 0 (2,167)
______ ______
81,014 (2,435)
Investing activities
Capital expenditures (90,210) (43,303)
Proceeds of sale 0 65,713
Investments and
acquisitions (2,263) 13,586
Other 9 7
______ ______
(92,464) 36,003
Increase in cash 4,100 50,158
Opening cash
(deficiency) (9,639) 59,088
______ ______
Closing cash
(deficiency) (5,539) 109,246
______ ______
CONTACT: BCE Mobile Communications Inc. John Gutpell, 514/ 956-4827 jgutpell@sympatico.ca |
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