BCI Announces Second Quarter Results.Business Editors MONTREAL--(BUSINESS WIRE)--July 25, 2002 BCI BCI Bat Conservation International BCI Brain-Computer Interface BCI Business Continuity Institute BCI Business Cycle Indicators BCI Banco de Credito e Inversiones (Chilean bank) BCI Bell Canada International (Nasdaq:BCICD) (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :BI): -- Revenue in the quarter was $95 million and EBITDA $20 million reflecting two months of TAL results. -- Net income from continuing operations in the quarter reflects a provision for loss on disposition of TAL of $339 million. -- The net loss from discontinued operations for the quarter includes a reduction of $109 million of the carrying value of discontinued operations to $96 million reflecting current financial circumstances and the reversal of a deferred tax provision of $80 million related to the sale of BCI's previous Asian investments, Hansol M.com and KG Telecommunications Co. Ltd. -- BCI also recorded a goodwill impairment charge of $732 million to January 1, 2002 opening retained earnings relating to its TAL investment. This charge relates to the adoption of the new accounting standards for the treatment of goodwill. -- Revenue for the six months ended June 30, 2002 was $232 million and EBITDA $61 million reflecting five months of TAL results. -- Net loss from continuing operations for the six months ended June 30, 2002 was $538 million including a $339 million provision for loss on the sale of TAL. -- Net earnings from discontinued operations for the six months ended June 30,2002 of $644 million are mainly attributable to a net gain recognized on the Telecom Americas reorganization transactions, principally from the disposition of Comcel. Discontinued Operations -- Canbras Communications Corp's. revenues reached $16.5 million in the quarter, up $2.8 million over the second quarter of 2001 driven primarily by cable and internet access subscriber growth partially offset by a devaluation in the Brazilian real compared to the Canadian dollar. EBITDA was $1.7 million, up $2.1 million over the same quarter last year, primarily due to increased revenue and lower expenses resulting from the closure of the Montreal office in 2001. Debt at the end of the period was $35 million. -- Axtel S.A de C.V's revenues were $96 million for the quarter, an increase of $20 million over the previous year driven by higher revenue per subscriber as a result of a change in customer mix. EBITDA reached $23 million, up $25 million over the same quarter last year due primarily to increased revenues, higher margins and reduced general and administrative expenses. Axtel is currently in discussions with its major supplier with respect to the terms of its supply and financing contracts. Debt at the end of the period was $797 million. Bell Canada Bell Canada Enterprises (TSX: BCE, NYSE: BCE), legally BCE Inc., is a major Canadian telecommunications company. Through its subsidiaries including Bell Canada, Bell Aliant, Northwestel, Télébec, and NorthernTel, it is the incumbent local exchange carrier for International Inc. ("BCI") today released results for the second quarter ending June 30, 2002. 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. Bill Anderson Anderson, river, Canada Anderson, river, c.465 mi (750 km) long, rising in several lakes in N central Northwest Territories, Canada. It meanders north and west before receiving the Carnwath River and flowing north to Liverpool Bay, an arm of the Arctic stated, "Since the announcement on June 3 of BCI's intention to sell its interest in Telecom Americas and proceed with the eventual voluntary and orderly orderly /or·der·ly/ (or´der-le) an attendant in a hospital who works under the direction of a nurse. or·der·ly n. An attendant in a hospital. liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy of the company through a Plan of Arrangement, significant milestones have been achieved including obtaining approvals of noteholders, shareholders and the Court. On July 24, we completed the sale of our stake in Telecom Americas ("TAL TAL - Transaction Application Language "). In addition, significant dilution Dilution A reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities. Notes: Adding to the number of shares outstanding reduces the value of holdings of existing shareholders. to shareholders was avoided when affiliates of American International Group
American International Group, Inc. (AIG) (NYSE: AIG; TYO: 8685 ) is a major American insurance corporation based in New York City. , Inc. ("AIG AIG addressee indicator group (US DoD) AIG American International Group, Inc AiG Answers in Genesis (religious group in defense of Scripture) AIG Artificial Intelligence Group AIG Australian Industry Group ") sold their indirect interest in Comunicacion Celular - Comcel S.A. ("Comcel") triggering the termination of the AIG Put and the Secondary Warrants." Mr. Anderson Mr. Anderson can refer to several fictional characters:
All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. under the circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . The TAL disposition, together with anticipated proceeds from the disposition of BCI's remaining assets, Axtel and Canbras, will likely permit BCI to repay its unsecured creditors Unsecured Creditor An individual or institution that lends money without obtaining specified assets as collateral. This poses a higher risk to the creditor because they have nothing to fall back on should the borrower default on the loan. A debenture holder is an unsecured creditor. and make a distribution to shareholders, subject to the resolution of certain contingent claims Contingent claim A claim that can be made only if one or more specified outcomes occur. against BCI." RESULTS REVIEW Basis of Presentation As of June 1, 2002, BCI ceased accounting for TAL on a proportionate pro·por·tion·ate adj. Being in due proportion; proportional. tr.v. pro·por·tion·at·ed, pro·por·tion·at·ing, pro·por·tion·ates To make proportionate. consolidation basis and adopted the cost accounting method for this investment. Axtel and Canbras have been accounted for as discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. since March 2001 and December 2001, respectively. As the sale of TAL was only completed following the end of BCI's second quarter, BCI has included its investment in TAL on its June 30, 2002 balance sheet in Current Assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. at its estimated net realizable value Net realizable value (NRV) is a commonly used method of evaluating an asset's worth in the field of inventory accounting. NRV is part of GAAP rules that apply to valuing inventory, so as to not overstate or understate the value of inventory goods. . Axtel and Canbras are also included on the June 30, 2002 balance sheet in the Investments at the lower of equity carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. and estimated net realizable value. The remaining items on BCI's balance sheet as of June 30, 2002 reflect only BCI's Corporate assets and liabilities. Recent Events -- Revenue in the quarter was $95 million and EBITDA $20 million reflecting two months of TAL results. -- Net income from continuing operations in the quarter reflects a provision for loss on disposition of TAL of $339 million. -- The net loss from discontinued operations for the quarter includes a reduction of $109 million of the carrying value of discontinued operations to $96 million reflecting current financial circumstances and the reversal of a deferred tax provision of $80 million related to the sale of BCI's previous Asian investments, Hansol M.com and KG Telecommunications Co. Ltd. -- BCI also recorded a goodwill impairment charge of $732 million to January 1, 2002 opening retained earnings relating to its TAL investment. This charge relates to the adoption of the new accounting standards for the treatment of goodwill. -- Revenue for the six months ended June 30, 2002 was $232 million and EBITDA $61 million reflecting five months of TAL results. -- Net loss from continuing operations for the six months ended June 30, 2002 was $538 million including a $339 million provision for loss on the sale of TAL. -- Net earnings from discontinued operations for the six months ended June 30,2002 of $644 million are mainly attributable to a net gain recognized on the Telecom Americas reorganization transactions, principally from the disposition of Comcel. Discontinued Operations -- Canbras Communications Corp's. revenues reached $16.5 million in the quarter, up $2.8 million over the second quarter of 2001 driven primarily by cable and internet access subscriber growth partially offset by a devaluation in the Brazilian real compared to the Canadian dollar. EBITDA was $1.7 million, up $2.1 million over the same quarter last year, primarily due to increased revenue and lower expenses resulting from the closure of the Montreal office in 2001. Debt at the end of the period was $35 million. -- Axtel S.A de C.V's revenues were $96 million for the quarter, an increase of $20 million over the previous year driven by higher revenue per subscriber as a result of a change in customer mix. EBITDA reached $23 million, up $25 million over the same quarter last year due primarily to increased revenues, higher margins and reduced general and administrative expenses. Axtel is currently in discussions with its major supplier with respect to the terms of its supply and financing contracts. Debt at the end of the period was $797 million. Second Quarter and Year to Date Results -- Revenue in the quarter was $95 million and EBITDA $20 million reflecting two months of TAL results. -- Net income from continuing operations in the quarter reflects a provision for loss on disposition of TAL of $339 million. -- The net loss from discontinued operations for the quarter includes a reduction of $109 million of the carrying value of discontinued operations to $96 million reflecting current financial circumstances and the reversal of a deferred tax provision of $80 million related to the sale of BCI's previous Asian investments, Hansol M.com and KG Telecommunications Co. Ltd. -- BCI also recorded a goodwill impairment charge of $732 million to January 1, 2002 opening retained earnings relating to its TAL investment. This charge relates to the adoption of the new accounting standards for the treatment of goodwill. -- Revenue for the six months ended June 30, 2002 was $232 million and EBITDA $61 million reflecting five months of TAL results. -- Net loss from continuing operations for the six months ended June 30, 2002 was $538 million including a $339 million provision for loss on the sale of TAL. -- Net earnings from discontinued operations for the six months ended June 30,2002 of $644 million are mainly attributable to a net gain recognized on the Telecom Americas reorganization transactions, principally from the disposition of Comcel. Discontinued Operations -- Canbras Communications Corp's. revenues reached $16.5 million in the quarter, up $2.8 million over the second quarter of 2001 driven primarily by cable and internet access subscriber growth partially offset by a devaluation in the Brazilian real compared to the Canadian dollar. EBITDA was $1.7 million, up $2.1 million over the same quarter last year, primarily due to increased revenue and lower expenses resulting from the closure of the Montreal office in 2001. Debt at the end of the period was $35 million. -- Axtel S.A de C.V's revenues were $96 million for the quarter, an increase of $20 million over the previous year driven by higher revenue per subscriber as a result of a change in customer mix. EBITDA reached $23 million, up $25 million over the same quarter last year due primarily to increased revenues, higher margins and reduced general and administrative expenses. Axtel is currently in discussions with its major supplier with respect to the terms of its supply and financing contracts. Debt at the end of the period was $797 million. BCI is operating under a court supervised su·per·vise tr.v. su·per·vised, su·per·vis·ing, su·per·vis·es To have the charge and direction of; superintend. [Middle English *supervisen, from Medieval Latin Plan of Arrangement to dispose of To determine the fate of; to exercise the power of control over; to fix the condition, application, employment, etc. of; to direct or assign for a use. See also: Dispose its remaining assets, settle all claims against the company and make a final distribution to its stakeholders. BCI is a subsidiary of BCE BCE abbr. 1. Bachelor of Chemical Engineering 2. Bachelor of Civil Engineering BCE Abbreviation for before the Common Era. Inc., Canada's largest communications company Communications Company is a communications unit of the United States Marine Corps. They are part of Combat Logistics Regiment 37 , 3rd Marine Logistics Group (3MLG) and III Marine Expeditionary Force (III MEF). The unit is based out of the Marine Corps Base Camp Smedley D. . BCI is listed on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. under the symbol BI and on the NASDAQ National Market under the temporary symbol BCICD. Visit our Web site at www.bci.ca. NOTES (1) Consistent with reporting in prior periods, 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 means operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before (loss) from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the before depreciation and amortization. This is a widely-used measure of cash operating earnings before financing charges and income taxes. EBITDA does not have any standardized standardized pertaining to data that have been submitted to standardization procedures. standardized morbidity rate see morbidity rate. standardized mortality rate see mortality rate. meaning prescribed pre·scribe v. pre·scribed, pre·scrib·ing, pre·scribes v.tr. 1. To set down as a rule or guide; enjoin. See Synonyms at dictate. 2. To order the use of (a medicine or other treatment). by GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). . Certain statements made in this press release describing BCI's intentions, expectations or predictions are forward-looking and are subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. For additional information with respect to risk factors relevant to BCI, see the reports on Forms 6-K and 40-F filed by BCI with the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Securities and Exchange Commission, as well as the Annual Information Form filed with Canadian securities commissions. BCI disclaims any intention or obligation to update or revise any forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , whether as a result of new information, future events or otherwise.
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THE BCI Q2 RESULTS CONFERENCE CALL WILL BE WEBCAST LIVE
ON JULY 26, 2002 AT 9:00 A.M. (EDT) AT WWW.BCI.CA
OR BY DIALING 1-888-575-8232
REPLAY FROM JULY 26 UNTIL MIDNIGHT OF AUGUST 2, 2002
PLEASE DIAL: 1-888 716-7820
ACCESS CODE 1229253#
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Supplemental Information, including financial statements and details of operating companies' performance, is available on our web site or upon request.
Selected Consolidated Financial Information (Unaudited)
Second Quarter 2002
(Cdn$thousands)
Three months ended Six months ended
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Jun 30, Jun 30, Jun 30, Jun 30,
2002 2001 2002 2001
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Statement of Earnings
Revenues 94,940 108,308 231,639 145,568
EBITDA (1) 20,189 17,370 60,808 18,781
Net earnings (loss)
from continuing
operations
applicable to
common shares (2) (468,229) (102,995) (537,915) (251,772)
Net earnings (loss)
applicable to common
shares (497,528) (109,331) 105,707 46,917
Net earnings (loss) -
discontinued
operations (29,299) (6,336) 643,622 298,689
Selected Consolidated Balance Sheet Information (Unaudited)
Second Quarter 2002
(Cdn$thousands)
As at As at
June 30, December 31,
2002 2001
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Current assets - Telecom Americas 555,997 -
- Other 54,660 676,857
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610,657 676,857
Investments (3) 96,627 -
Licenses & other fixed assets, net 313 2,431,693
Goodwill - 1,449,129
Other assets 1,992 197,104
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709,589 4,754,783
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Current liabilities 216,742 2,120,419
Long-term debt 160,000 1,539,300
Other liabilities - 658,149
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376,742 4,317,868
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Non-controlling interest - 98,397
Shareholders' equity 332,847 338,518
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709,589 4,754,783
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(1) Consistent with reporting in prior periods, EBITDA means
operating earnings (loss) from continuing operations before
depreciation and amortization, and is a widely used measure of
cash operating earnings before financing charges and income
taxes. EBITDA does not have any standardized meaning
prescribed by Generally Accepted Accounting Principles
("GAAP").
(2) Net earnings (loss) from continuing operations applicable to
common shares means Net earnings (loss) from continuing
operations less Interest on convertible debentures.
(3) Investments are recorded at the lower of equity carrying value
and net realizable value.
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