Bestel Announces Second Quarter 1999 Earnings; Ruben Camiro Incorporates as CFO.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. , Mexico--(BUSINESS WIRE)--Aug. 10, 1999-- Bestel, S.A. de C.V., a facilities-based, long-distance long-dis·tance adj. 1. Covering a long distance: a long-distance runner; operating under long-distance supervision. 2. service provider in Mexico and the United States Relations between the United States and Mexico are among the most important and complex that each nation maintains. They are shaped by a mixture of mutual interests, shared problems, and growing interdependence. , announced today that its net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight during the second quarter of 1999 grew to Ps. 329.3 million, a 177% increase over net sales in the second quarter of 1998. The majority of the revenue, Ps. 302.9 million, was derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from an initial, partial booking of the US$ 53.0 million sale of four dark fibers to Global Crossing. Net Income of Ps. 124.4 million for the second quarter 1999 reflects a growth of Ps. 46.5 million or 59% with respect to the same quarter last year. During the quarter the company completed testing on its Guadalajara switch and started construction of additional 1,800 kms of network connecting Guadalajara, Tepic Tepic (tāpēk`), city (1990 pop. 206,967), capital of Nayarit state, W Mexico, on the Tepic River. A commercial center on the coastal line of the Mexican National Railways and on a major highway, Tepic lies in a prosperous corn, sugarcane, and , Mazatlan, Durango Durango, city, Mexico Durango (d  räng`gō) or Victoria de Durango (vēktôr`yä thā), city (1990 pop. , Torreon and 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 Toluca Toluca (tōl`kä), city (1990 pop. 327,865), capital of Mexico state, central Mexico. Located on the central plateau, Toluca (alt. c.8,760 ft/2,670 m) has a year-round cool climate. to Irapuato Irapuato (ēräpwä`tō), city (1990 pop. 265,042), Guanajuato state, W central Mexico, on the Irapuato River. It is the commercial and communications center of the surrounding mining and agricultural (cereals and cattle) region. . This expansion along with a programmed upgrade
of current multiplexing multiplexing, in communication, technique whereby two or more independent messages, or information-bearing signals, are carried by a single common medium, or channel. equipment will allow the company to double
current capacity and have a fully diverse and redundant Repetitive. See redundancy. network.Management is pleased with the Company's result for the first six months of 1999. Telecommunications service In telecommunication, the term telecommunications service has the following meanings: 1. Any service provided by a telecommunication provider. 2. revenues commenced approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. four months behind schedule, but are now growing at projected rates. Better than expected cost performance and completion of the Global Crossings transactions more than offset the lag in recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. sales ramp up Ramp Up To increase a company's operations in anticipation of increased demand. Notes: A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product. See also: Demand, Economies of Scale , leaving the company with US$ 28.9 million in cash at June June: see month. 30, 1999. Management is confident about the future and its ability to reach its long-term goals Long-term goals Financial goals expected to be accomplished in five years or longer. , and believes it is consolidating Bestel's position as the only company primarily focused as a carrier's carrier in Mexico Mexico, city, Mexico 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. . Mr. Ruben Camiro has recently joined the company as Chief Financial Officer. Mr. Camiro has vast experience in the national and international financial markets together with an exceptional record of achievements in prestigious companies in Mexico. The incorporation of Mr. Camiro will enrich Bestel's management with his experience and professionalism professionalism the upholding by individuals of the principles, laws, ethics and conventions of their profession. . Certain statements contained in this press release are "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. " within the meaning of section 27A of the Securities Act and section 21E of the Securities Exchange Act of 1934. -0-
BESTEL, S.A. DE C.V. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
As of December 31, 1998 and June 30, 1999
(Thousands of Mexican Pesos of purchasing power of June 30, 1999)
----------------------------------------------------------------------
(MEXGAAP) Thousands of
U.S. dollars
(Convenience
Translation)
December 31, June 30, June 30,
1998 1999 1999
------------- ------------ -----------
(Unaudited) (Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents Ps. 345,261 Ps. 272,453 $ 28,862
Trade receivables net of
allowance for doubtful
accounts for Ps. 319
in 1999 75,587 287,710 30,478
Other receivables 49,609 35,884 3,801
------------- ------------ -----------
Total current assets 470,457 596,047 63,141
------------- ------------ -----------
TRADE RECEIVABLES FROM DARK
FIBER SALES 10,312 4,133 438
TELECOMMUNICATIONS NETWORK
AND EQUIPMENT- Net:
Held for sale and expansion 883,888 862,771 91,395
Retained for offering
products and services 773,718 796,946 84,422
------------- ------------ -----------
1,657,606 1,659,717 175,817
------------- ------------ -----------
PREOPERATING EXPENSES 39,571 37,001 3,920
CONCESSIONS AND ORGANIZATION
COSTS 52,931 50,906 5,393
DEFERRED DEBT ISSUANCE COSTS,
Net 42,959 42,633 4,516
OTHER ASSETS 1,955 3,698 391
------------- ------------ -----------
TOTAL Ps. 2,275,791 Ps. 2,394,135 $ 253,616
============= ============ ===========
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES:
Accounts payable - network
construction Ps. 178,213 Ps. 97,079 $ 10,284
Due to Ferrocarriles
Nacionales de Mexico 29,015 10,714 1,135
Accrued expenses and other 25,417 15,042 1,593
Due to affiliates 840 1,089 115
------------- ------------ -----------
Total current liabilities 233,485 123,924 13,127
LONG-TERM DEBT 1,381,634 1,408,589 149,215
DEFERRED INCOME TAX 62,942 139,481 14,776
------------- ------------ -----------
Total liabilities 1,678,061 1,671,994 177,118
------------- ------------ -----------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock, no par value,
3,950,000 issued and
outstanding at December 31,
1998 and June 30, 1999 342,580 342,580 36,290
Unpaid common stock (35) (35) (4)
Additional paid-in capital 20,028 20,028 2,122
Retained earnings 235,157 359,568 38,090
------------- ------------ -----------
Total stockholders' equity 597,730 722,141 76,498
------------- ------------ -----------
TOTAL Ps. 2,275,791 Ps. 2,394,135 $ 253,616
Financial Statements are provided here as a reference, and have to be
read in conjunction with notes to financial statements and other notes
otherwise available in current or previous filings of the company.
BESTEL, S.A. DE C.V. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Thousands of Mexican Pesos of purchasing power of June 30, 1999)
----------------------------------------------------------------------
(MEXGAAP)
Thousands of
U.S. dollars
(Convenience
Translation)
Three Months Ended Three Months
June 30, Ended,
1998 1999 June 30, 1999
REVENUES:
Sales of dark fiber Ps. 118,835 Ps 302,854 $ 32,082
Telecommunication services 22,396 2,373
Leasing, maintenance and other 4,024 426
--------- ---------- -----------
118,835 329,274 34,881
COSTS AND EXPENSES:
Cost of sales of dark fiber 26,025 33,950 3,596
Cost of communication services 14,642 1,552
Network depreciation and
maintenance 52,766 5589
General and administrative
expenses 747 23,670 2,508
--------- ---------- -----------
26,772 125,028 13,245
--------- ---------- -----------
OPERATING INCOME 92,063 204,246 21,636
--------- ---------- -----------
NET COMPREHENSIVE FINANCING
COST (INCOME):
Exchange gain (11,463) (24,756) (2,622)
Interest expense 54,206 5,742
Interest income (7,540) (799)
Monetary position loss (gain) 6,226 (18,185) (1,926)
--------- ---------- ------------
(5,237) 3,725 395
--------- ---------- -----------
INCOME BEFORE INCOME TAX 97,300 200,521 21,242
INCOME TAX - Deferred 19,381 76,141 8,066
--------- ---------- -----------
NET INCOME Ps 77,919 Ps 124,380 $ 13,176
========== ========== ==========
BASIC EARNINGS PER SHARE:
EARNINGS PER SHARE Ps. 19.73 Ps. 31.49 $ 3.34
WEIGHTED AVERAGE SHARES
OUTSTANDING 3,950,000 3,950,000 3,950,000
========== ========== ==========
DILUTED EARNINGS PER SHARE:
EARNINGS PER SHARE Ps. 18.48 Ps. 28.92 $ 3.06
WEIGHTED AVERAGE SHARES
OUTSTANDING 4,216,226 4,301,110 4,301,110
=========== ========== ===========
Thousands of
U.S. dollars
(Convenience
Translation)
Six Months Ended Six Months
June 30, Ended,
1998 1999 June 30, 1999
REVENUES:
Sales of dark fiber Ps. 162,531 Ps. 302,854 $ 32,082
Telecommunication services 30,262 3,206
Leasing, maintenance and other 4,024 426
--------- ---------- -----------
162,531 337,140 35,714
COSTS AND EXPENSES:
Cost of sales of dark fiber 38,879 33,950 3,596
Cost of communication services 17,800 1,886
Network depreciation and
maintenance 92,736 9,824
General and administrative
expenses 1,909 40,976 4,340
--------- ---------- -----------
40,788 185,462 19,646
--------- ---------- -----------
OPERATING INCOME 121,743 151,678 16,068
--------- ---------- -----------
NET COMPREHENSIVE FINANCING
COST (INCOME):
Exchange gain (19,531) (76,505) (8,104)
Interest expense 103,714 10,987
Interest income (8,808) (934)
Monetary position loss (gain) 14,178 (71,983) (7,625)
--------- ---------- ------------
(5,353) (53,582) (5,676)
--------- ---------- -----------
INCOME BEFORE INCOME TAX 127,096 205,260 21,744
INCOME TAX - Deferred 30,825 80,849 8,565
--------- ---------- -----------
NET INCOME Ps. 96,271 Ps. 124,411 $ 13,179
========== ========== ==========
BASIC EARNINGS PER SHARE:
EARNINGS PER SHARE Ps. 24.50 Ps. 31.50 $ 3.34
WEIGHTED AVERAGE SHARES
OUTSTANDING 3,929,560 3,950,000 3,950,000
========== ========== ==========
DILUTED EARNINGS PER SHARE:
EARNINGS PER SHARE Ps. 23.69 Ps. 28.93 $ 3.06
WEIGHTED AVERAGE SHARES
OUTSTANDING 4,063,959 4,301,110 4,301,110
========== ========== ==========
Financial Statements are provided here as a reference, and have to be
read in conjunction with notes to financial statements and other notes
otherwise available in current or previous filings of the company.
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