Bestel Announces Fourth Quarter of 1999 and First Quarter of 2000 Results of Operations; For Full Year 1999 Revenues Grew 224% and Net Income Grew 27%.Business Editors GUADALAJARA, Jalisco
Guadalajara (Spanish pronunciation [ɡwað̞alaˈxaɾa] , Mexico--(BUSINESS WIRE)--June 6, 2000 Bestel, S.A. de C.V., a Mexican Mexican named after or originating in Mexico. Mexican axolotl see ambystomamexicanum. Mexican beaded lizard (Heloderma horridum facilities-based provider of technologically advanced, high-bandwidth, fiber-optic-based telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. and data services, announced today that its revenues during the fourth quarter of 1999 grew to Ps. 139.7 million, a 1017% increase over revenues in the fourth quarter of 1998, and its revenues during the first quarter of 2000 grew to Ps. 74.4 million, a 775% increase over revenues in the first quarter of 1999. Revenues from dark fiber sales were Ps. 80.6 million and Ps. 17.9 million for the fourth quarter of 1999 and first quarter of 2000 respectively. Net comprehensive financing cost compares adversely for both quarters with respect to the same figures for the prior comparable periods as exchange rate stability decreased Bestel's exchange gain and lower inflation reduced its monetary position gains. Bestel's net loss of Ps. 29.0 million for the fourth quarter of 1999 increased Ps. 15.8 million compared to the fourth quarter of 1998 and its net loss of Ps. 12.0 million for the first quarter of 2000 increased Ps. 12.0 million compared to the first quarter of 1999. For the full year of 1999, revenues grew 224% to Ps. 664.0 million when compared to 1998, and net income grew 27% to Ps. 141.6 million when compared to 1998. "We have achieved significant milestones during these last two quarters," said Ruben Camiro, Chief Financial Officer of Bestel. "We have been able to attract two very talented professionals into our organization, Santiago Santiago, city, Chile Santiago (säntēä`gō), city (1990 est. pop. 4,395,000), central Chile, capital of Chile and of Metropolitana de Santiago region, on the Mapocho River. Gutierrez Gutierrez is the name of:
Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. under budget with only minor delays. Phase II makes our network diverse closing a large ring, and with the DWDM (Dense WDM) The term given to wavelength division multiplexing (WDM) when significantly more channels were being added. Since WDM is increasingly more "dense" all the time, both terms are used synonymously. See WDM. DWDM - wavelength division multiplexing equipment we have installed, it is now fully redundant Repetitive. See redundancy. allowing us to offer our customers a very high grade of service," concluded Mr. Camiro. During the fourth quarter of 1999 and the first quarter of 2000, Ps. 915.6 million were invested in network expansion. Net property plant and equipment were Ps. 2,526.9 million at the end of first quarter 2000, a 42% increase with respect to first quarter 1999. Bestel is a Mexican facilities-based provider of technologically advanced, high-bandwidth, fiber-optic-based telecommunications and data services. Bestel is developing and offers a broad range of integrated telecommunications and data solutions to carriers, competitive local exchange carriers, Internet service providers Internet service provider (ISP) Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password. , application service providers and large corporate and government customers in Mexico. Bestel's long haul Long distance. Long haul implies traversing a state or a country. Contrast with short haul. fiber optic optic /op·tic/ (op´tik) ocular (1). op·tic or op·ti·cal adj. 1. Of or relating to the eye or vision. 2. network current extends over 4,100 route kilometers with points-of-presence in 19 Mexican metropolitan areas, including Mexico City Mexico City Spanish Ciudad de México City (pop., 2000: city, 8,605,239; 2003 metro. area est., 18,660,000), capital of Mexico. Located at an elevation of 7,350 ft (2,240 m), it is officially coterminous with the Federal District, which occupies 571 sq mi , Monterrey Monterrey (mōntārā`), city (1990 pop. 1,068,996), capital of Nuevo León state, NE Mexico, the third largest city of Mexico. Located c.150 mi (240 km) S of Laredo, Tex. and Guadalajara Guadalajara, city, Mexico Guadalajara (gwä'thälähä`rä), city (1990 pop. 1,650,042), capital of Jalisco state, SW Mexico, second largest city of Mexico. The metropolitan area includes close to 3 million people. , as well as two U.S. cities. In addition, Bestel has over 2,600 kms of purchased and swapped fiber both in the U.S. and Mexico. Bestel owns over 680 route kilometers of metropolitan fiber rings and point-to-point Refers to a communications line that provides a path from one location to another (point A to point B). Contrast with multipoint. and point-to-multipoint A communications network that provides a path from one location to multiple locations (from one to many). wireless frequencies for last- mile access. (All figures presented above are in pesos of purchasing power Purchasing Power 1. The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you'd be able to purchase. 2. of March 31, 2000. Financial Statements follow.)
Bestel, S.A. de C.V. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
As of December 31, 1998 and 1999
(Thousands of Mexican Pesos of Purchasing Power of December 31, 1999,
except share data)
----------------------------------------------------------------------
(MexGAAP) Thousands of
U.S. dollars
(Convenience
Translation)
December 31, December 31,
1998 1999 1999
----------- ------------- ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents Ps. 362,539 Ps. 100,876 $ 10,641
Trade receivables, net of
allowance for doubtful
accounts of Ps. 348 in 1999 79,370 274,735 28,980
Other accounts receivable 52,091 119,454 12,601
----------- ------------- ------------
Total current assets 494,000 495,065 52,222
TRADE RECEIVABLES FROM DARK
FIBER SALES 10,828 2,167 228
TELECOMMUNICATIONS NETWORK
AND EQUIPMENT - Net: 1,740,557 2,494,255 263,107
PREOPERATING COSTS, - Net 41,552 37,861 3,994
CONCESSIONS AND ORGANIZATION
COSTS - Net 55,580 52,138 5,500
DEFERRED DEBT ISSUANCE COSTS Net 43,588 38,193 4,029
OTHER ASSETS 3,574 5,495 579
------------- ------------- ------------
TOTAL Ps. 2,389,679 Ps. 3,125,174 $ 329,659
============= ============= ============
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES:
Current portion of long-term
debt Ps. --- Ps. 20,903 $ 2,205
Due to telecommunications
network construction
vendors 187,132 235,287 24,819
Accounts payable - trade --- 61,864 6,526
Due to Ferrocarriles
Nacionales de Mexico 30,467 --- ---
Accrued expenses and other 26,689 39,081 4,122
Due to affiliates 881 117,207 12,364
----------- ----------- -----------
Total current liabilities 245,169 474,342 50,036
LONG-TERM DEBT 1,450,775 1,639,916 172,987
DEFERRED INCOME TAX 66,092 143,014 15,086
----------- ----------- -----------
Total liabilities 1,762,036 2,257,272 238,109
----------- ----------- -----------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock, no par value,
3,950,000 and 5,568,922
shares issued and
outstanding at December 31,
1998 and 1999,
respectively 359,761 547,938 57,799
Unpaid common stock (35) (93,536) (9,867)
Additional paid-in capital 21,030 29,085 3,068
Retained earnings 246,887 384,415 40,550
------------- ------------- -----------
Total stockholders' equity 627,643 867,902 91,550
------------- ------------- -----------
TOTAL Ps. 2,389,679 Ps. 3,125,174 $ 329,659
============= ============= ===========
Financial Statements are provided here as a reference, and should
be read in conjunction with notes to full financial statements in
current or previous filings of the company made with the U.S.
Securities and Exchange Commission.
Bestel, S.A. de C.V. and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Thousands of Mexican Pesos of purchasing power of December 31, 1999
except share data)
----------------------------------------------------------------------
(MexGAAP)
Thousands of
U.S. dollars
(Convenience
Translation)
Three months
Three months ended Ended
December 31, December 31, December 31,
1998 1999 1999
REVENUES:
Sales of dark fiber Ps. 8,219 Ps. 78,296 $ 8,259
Telecommunication and network
services 3,930 57,400 6,054
------------- ------------ -----------
12,149 135,695 14,313
COSTS AND EXPENSES:
Cost of sales of dark fiber 4,809 14,961 1,578
Cost of telecommunication
services 2,262 29,973 3,161
Network Maintenance 4,362 16,205 1,709
Depreciation and Amortization 23,353 36,066 3,804
Sales, general and
administrative expenses 20,709 37,743 3,981
------------- ------------ -----------
55,765 134,948 14,233
------------- ------------ -----------
OPERATING INCOME (43,616) 747 80
------------- ------------ -----------
NET COMPREHENSIVE FINANCING
(COST) INCOME:
Exchange gain 20,386 128,428 13,547
Exchange loss (148,246) (15,637)
Interest expense (51,803) (45,027) (4,749)
Interest income 7,388 2,766 291
Monetary position (loss) gain 55,649 33,207 3,502
------------- ------------- -----------
31,620 (28,871) (3,406)
------------- ------------- -----------
INCOME BEFORE INCOME TAX (11,997) (28,124) (2,966)
INCOME TAX - Deferred 817 3
------------ ------------- -----------
NET income Ps. (12,814) Ps. (28,121) $ (2,966)
============ ============= ===========
BASIC EARNINGS PER SHARE Ps. (3.25) Ps. (6.18) $ (0.65)
============ ============= ===========
WEIGHTED AVERAGE SHARES
OUTSTANDING 3,939,808 4,553,298
============ =============
DILUTED EARNINGS PER SHARE Ps. 3.06 Ps. (5.43) $ (0.57)
============ ============= ===========
WEIGHTED AVERAGE SHARES
OUTSTANDING 4,182,218 5,176,266
============ =============
Thousands of
U.S. dollars
(Convenience
Translation)
Years Ended Year Ended
December 31, December 31,
1998 1999 1999
REVENUES:
Sales of dark fiber Ps. 195,055 Ps. 494,640 $ 52,177
Telecommunication and network
services 3,929 150,392 15,865
------------ ------------ -----------
198,984 645,032 68,042
COSTS AND EXPENSES:
Cost of sales of dark fiber 51,252 57,874 6,105
Cost of telecommunication
services 2,262 65,481 6,907
Network Maintenance 4,632 61,489 6,487
Depreciation and Amortization 23,352 135,103 14,251
Sales, general and
administrative expenses 23,291 111,661 11,779
----------- ------------ -----------
104,789 431,608 45,529
----------- ------------ -----------
OPERATING INCOME 94,195 213,424 22,513
----------- ------------ -----------
NET COMPREHENSIVE FINANCING
(COST) INCOME:
Exchange gain 73,030 128,428 13,547
Exchange loss --- (60,810) (6,414)
Interest expense (51,803) (202,339) (21,344)
Interest income 7,387 19,202 2,026
Monetary position (loss) gain 27,064 128,152 13,518
----------- ------------ -----------
55,678 12,633 1,333
----------- ------------ -----------
INCOME BEFORE INCOME TAX 149,873 226,057 23,846
INCOME TAX - Deferred 38,019 88,529 9,339
----------- ------------ -----------
NET INCOME Ps. 111,854 Ps. 137,528 $ 14,507
=========== ============ ===========
BASIC EARNINGS PER SHARE Ps. 28.39 Ps. 30.20 $ 3.19
=========== ============ ===========
WEIGHTED AVERAGE SHARES
OUTSTANDING 3,939,808 4,553,298
============ ============
DILUTED EARNINGS PER SHARE Ps. 26.75 Ps. 26.57 $ 2.80
============ ============ ===========
WEIGHTED AVERAGE SHARES
OUTSTANDING 4,182,218 5,176,266
============ ============
Financial Statements are provided here as a reference, and should
be read in conjunction with notes to full financial statements in
current or previous filings of the company made with the U.S.
Securities and Exchange Commission.
Bestel, S. A. de C. V. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
As of December 31, 1998 and December 31, 1999
(Thousands of Mexican Pesos of purchasing power of March 31, 2000)
----------------------------------------------------------------------
(MexGAAP) Thousands of
U.S. dollars
(Convenience
Translation)
December 31, March 31, March 31,
1999 2000 2000
----------- ----------- ---------
(Unaudited) (Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents Ps. 104,043 Ps. 80,744 $ 8,691
Trade receivables 283,361 210,984 22,710
Other accounts receivable 123,204 147,523 15,879
------------ ------------ ----------
Total current assets 510,608 439,251 47,280
TRADE RECEIVABLES FROM DARK
FIBER SALES 2,235 2,167 233
TELECOMMUNICATIONS NETWORK AND
EQUIPMENT- Net 2,572,574 2,526,870 271,998
PREOPERATING COSTS - Net 39,049 39,908 4,295
CONCESSIONS AND ORGANIZATION
COSTS - Net 53,775 54,269 5,841
DEFERRED DEBT ISSUANCE COSTS
- Net 39,392 39,744 4,278
OTHER ASSETS 5,668 3,290 354
------------- ------------ ----------
TOTAL Ps. 3,223,301 Ps. 3,105,499 $ 334,279
============= ============ ==========
LIABILITIES AND SHAREHOLDERS'
EQUITY
CURRENT LIABILITIES:
Current portion of long-term
debt Ps. 21,559 Ps. 20,418 $ 2,197
Due to telecommunications
network construction vendors 242,675 190,200 20,473
Accounts payable - trade 63,806 72,055 7,756
Accrued expenses and other 40,308 38,363 4,129
Due to affiliates 120,887 30,205 3,251
------------ ------------ ----------
Total current liabilities 489,235 351,241 37,806
LONG-TERM DEBT 1,691,409 1,637,167 176,228
DEFERRED INCOME TAX 147,504 227,153 24,451
------------ ------------ ----------
Total liabilities 2,328,148 2,215,561 238,485
------------ ------------ ----------
COMMITMENTS AND CONTINGENCIES
(Note 7)
SHAREHOLDERS' EQUITY:
Common stock, no par value,
5,568,922 and 7,008,387
shares issued and outstanding
at December 31, 1999
and March 31, 2000,
respectively 562,247 563,086 60,611
Unpaid common stock (93,536) (35) (4)
Additional paid-in capital 29,995 29,995 3,229
Cumulative effect of deferred
income tax --- (87,598) (9,429)
Retained earnings 396,447 384,490 41,387
------------ ------------ ----------
Total shareholders' equity 895,153 889,938 95,794
------------- ------------ ----------
TOTAL Ps. 3,223,301 Ps. 3,105,499 $ 334,279
============= ============ ==========
Financial Statements are provided here as a reference, and should
be read in conjunction with notes to full financial statements in
current or previous filings of the company made with the U.S.
Securities and Exchange Commission.
Bestel, S.A. de C.V. and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Thousands of Mexican Pesos of purchasing power of March 31, 1999)
----------------------------------------------------------------------
(MexGAAP) Thousands of
U.S. dollars
(convenience
Three months ended Translation)
March 31, March 31,
1999 2000 2000
----------- ----------- -----------
REVENUES:
Sales of dark fiber Ps. --- Ps. 17,845 $ 1,920
Telecommunications and data
services 8,502 56,574 6,089
------------ ------------ -----------
8,502 74,419 8,009
------------ ------------ -----------
COSTS AND EXPENSES:
Cost of sales of dark fiber --- 1,799 193
Interconnection costs 3,414 28,746 3,094
Network maintenance 11,552 17,339 1,866
Depreciation and amortization 32,346 44,862 4,829
Sales, general and administrative
expenses 18,014 34,095 3,670
------------ ------------ -----------
65,326 126,841 13,652
------------ ------------ -----------
OPERATING LOSS (56,824) (52,422) (5,643)
------------ ------------ -----------
NET COMPREHENSIVE FINANCING
INCOME:
Exchange gain 85,210 43,923 4,727
Exchange loss (29,271) (8,441) (908)
Interest expense (53,517) (53,011) (5,706)
Interest income 1,341 1,610 173
Monetary position gain 58,184 55,593 5,984
------------ ------------ -----------
61,947 39,674 4,270
------------ ------------ -----------
INCOME (LOSS) BEFORE INCOME TAX 5,123 (12,748) (1,373)
INCOME TAX - Deferred 5,089 (791) (85)
------------ ------------ -----------
NET INCOME (LOSS) Ps. 34 Ps. (11,957) $ (1,288)
============ ============ ===========
BASIC EARNINGS (LOSS) PER
SHARE:
EARNINGS PER SHARE Ps. 0.01 Ps. (1.71) $ (0.18)
============ ============ ==========
WEIGHTED AVERAGE SHARES
OUTSTANDING 3,950,000 7,008,387
============ ============
DILUTED EARNINGS (LOSS) PER
SHARE:
EARNINGS PER SHARE Ps. 0.01 Ps. (1.71) $ (0.18)
============ ============ ===========
WEIGHTED AVERAGE SHARES
OUTSTANDING 4,310,110 7,008,387
============ ============
Financial Statements are provided here as a reference, and should
be read in conjunction with notes to full financial statements in
current or previous filings of the company made with the U.S.
Securities and Exchange Commission.
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