Bestel Announces Second Quarter of 2000 Results of Operations; Recurring Revenues Grew 55% Over 1Q00 and Became EBITDA Positive On Recurring Revenues.Business Editors & High-Tech high-tech also hi-tech adj. Informal Of, relating to, or resembling high technology. high-tech Adjective same as hi-tech Adj. 1. Writers GUADALAJARA, Jalisco
Guadalajara (Spanish pronunciation [ɡwað̞alaˈxaɾa] , Mexico--(BUSINESS WIRE)--Aug. 7, 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 bandwidth Measurement of the capacity of a communications signal. For digital signals, the bandwidth is the data speed or rate, measured in bits per second (bps). For analog signals, it is the difference between the highest and lowest frequency components, measured in hertz , 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 from the provision of telecommunication telecommunication Communication between parties at a distance from one another. Modern telecommunication systems—capable of transmitting telephone, fax, data, radio, or television signals—can transmit large volumes of information over long distances. and data services during the second quarter of 2000 grew to Ps.88.7 million, a 208% increase over the second quarter of 1999. Due to the absence of non-recurring sales of dark fiber total revenues decreased 75% during the second quarter of 2000 with respect to the corresponding period of 1999. Net comprehensive financing cost for the second quarter of 2000 compared adversely to net comprehensive financing income for the corresponding period of 1999 as the depreciation of the peso at the end of the second quarter of 2000 adversely impacted Bestel's foreign exchange position. As a result of the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. , Bestel recorded a net loss of Ps.108.3 million during the second quarter of 2000 compared to a net gain of Ps.135.8 during the second quarter of 1999. Net property plant and equipment was Ps.2,537.6 million at June June: see month. 30, 2000, a 40% increase compared to the June 30, 1999. "The company became 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 positive (Ps.3.7 million) on 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. revenues this quarter after 20 months of commercial operations," said Ruben Camiro, chief financial officer of Bestel. 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:
A milestone or kilometre sign is one of a series of numbered markers placed along a road at regular intervals, typically at the side of the road or in a median. becoming EBITDA positive on recurring revenues. This result was due to our recurring revenue growth during the quarter, a 55% increase over the first quarter of 2000, mainly in higher margin lines of business like dedicated access. We continue progressing towards achieving our long-term goals Long-term goals Financial goals expected to be accomplished in five years or longer. with tangible Possessing a physical form that can be touched or felt. Tangible refers to that which can be seen, weighed, measured, or apprehended by the senses. A tangible object is something that is real and substantial. An automobile is an example of tangible Personal Property. results." 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 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. . 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 three U.S. cities. In addition, Bestel has over 2,600 kms of purchased and swapped fiber both in 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. 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.
(Figures in pesos of purchasing power of June 30, 2000.
Financial Statements follow.)
Bestel, S. A. de C. V. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
As of December 31, 1999, and Unaudited June 30, 2000
(Thousands of Mexican Pesos of Purchasing Power of June 30, 2000,
except share data)
(MexGAAP) Thousands of
U.S. dollars
(Convenience
December 31, June 30, Translation)
1999 2000 2000
-------------- ----------- -------------
(Unaudited) (Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents Ps. 105,072 Ps. 130,890 $ 13,301
Trade receivables, net of
allowance for doubtful
accounts of Ps.348 in
1999 and 2000 286,163 60,931 6,192
Other accounts receivable 124,423 132,754 13,491
---------- ---------- ----------
Total current assets 515,658 324,575 32,984
TRADE RECEIVABLES FROM
DARK FIBER SALES 2,257 2,167 220
TELECOMMUNICATIONS NETWORK
AND EQUIPMENT -- Net 2,598,016 2,537,643 257,890
PREOPERATING COSTS, less
accumulated amortization
of Ps.5,311 and
Ps.6,143, respectively 39,436 39,092 3,972
CONCESSIONS AND
ORGANIZATION COSTS, less
accumulated amortization
of Ps.6,430, and
Ps.8,297, respectively 54,306 53,983 5,486
DEFERRED DEBT ISSUANCE
COSTS, less accumulated
amortization of Ps.9,056
and Ps.12,375,
respectively 39,781 41,301 4,197
OTHER ASSETS 5,723 3,076 312
---------- ---------- ----------
TOTAL Ps. 3,255,177 Ps. 3,001,837 $ 305,061
========== ========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of
long-term debt Ps. 21,772 Ps. 326,285 $ 33,159
Due to telecommunications
network construction vendors 245,074 175,042 17,788
Accounts payable-trade 64,437 14,009 1,423
Accrued expenses and other 40,708 50,845 5,167
Due to affiliates 122,082 -- --
Total current liabilities 494,073 566,181 57,536
LONG-TERM DEBT 1,708,136 1,498,929 152,330
DEFERRED INCOME TAX 148,963 145,957 14,832
---------- ---------- ----------
Total liabilities 2,351,172 2,211,067 224,698
---------- ---------- ----------
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Common stock, no par value,
5,568,922 and 7,008,387
shares issued and
outstanding at December 31,
1999 and June 30, 2000,
respectively 568,949 568,949 57,821
Unpaid common stock (95,644) (62) (6)
Additional paid-in capital 30,294 30,294 3,078
Retained earnings 400,406 280,053 28,460
Cumulative effect of deferred
income tax -- (88,464) (8,990)
---------- ---------- ----------
Total shareholders' equity 904,005 790,770 80,363
---------- ---------- ----------
TOTAL Ps. 3,255,177 Ps. 3,001,837 $ 305,061
========== ========== ==========
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
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Thousands of Mexican Pesos of Purchasing Power of June 30, 2000,
except share and per share data)
(Mex GAAP) Thousands of
U.S. Dollars
Three Months Ended (Convenience
June 30, Translation)
1999 2000 2000
------------------------- ----------------
REVENUES:
Sales of dark fiber Ps. 330,625 Ps. -- $ --
Telecommunications
and data services 28,813 88,733 9,017
----------- ----------- -------------
359,438 88,733 9,017
----------- ----------- -------------
COSTS AND EXPENSES:
Cost of sales of
dark fiber 37,063 -- --
Interconnection costs 15,984 27,019 2,745
Network maintenance 20,473 16,236 1,650
Depreciation and
amortization 37,130 47,956 4,873
Sales, general and
administrative
expenses 25,840 41,827 4,250
----------- ----------- -------------
136,490 133,038 13,518
----------- ----------- -------------
OPERATING INCOME (LOSS) 222,948 (44,305) (4,501)
----------- ----------- -------------
NET COMPREHENSIVE
FINANCING (COST)
INCOME:
Exchange gain 53,279 6,904 702
Exchange loss (26,253) (112,706) (11,454)
Interest expense (59,176) (56,619) (5,754)
Interest income 8,231 534 54
Monetary position
(loss) gain 19,852 16,742 1,699
----------- ----------- -------------
(4,067) (145,163) (14,753)
----------- ----------- -------------
INCOME (LOSS) BEFORE
INCOME TAX 218,881 (189,469) (19,254)
INCOME TAX -- Deferred 83,123 (81,191) (8,251)
----------- ----------- -------------
NET income (LOSS) Ps. 135,758 Ps. (108,278) $ (11,003)
=========== =========== =============
BASIC EARNINGS (LOSS)
PER SHARE:
EARNINGS (LOSS)
PER SHARE Ps. 34.37 Ps. (16.13) $ (1.64)
=========== =========== =============
WEIGHTED AVERAGE
SHARES OUTSTANDING 3,950,000 6,712,023
=========== =========== =============
DILUTED EARNINGS
(LOSS) PER SHARE:
EARNINGS (LOSS)
PER SHARE Ps. 31.56 Ps. (16.13) $ (1.64)
=========== =========== =============
WEIGHTED AVERAGE
SHARES OUTSTANDING 4,301,110 6,712,023
=========== ===========
(Mex GAAP) Thousands of
U.S. Dollars
Six Months Ended (Convenience
June 30, Translation)
1999 2000 2000
----------- ----------- -------------
REVENUES:
Sales of dark fiber Ps. 330,625 Ps. 18,024 $ 1,831
Telecommunications
and data services 37,430 145,864 14,823
----------- ----------- -------------
368,055 163,888 16,654
----------- ----------- -------------
COSTS AND EXPENSES:
Cost of sales of
dark fiber 37,063 1,817 184
Interconnection costs 19,432 56,048 5,696
Network maintenance 31,890 33,747 3,429
Depreciation and
amortization 69,349 93,261 9,478
Sales, general and
administrative
expenses 44,733 76,259 7,749
----------- ----------- -------------
202,467 261,132 26,536
----------- ----------- -------------
OPERATING INCOME (LOSS) 165,588 (97,244) (9,882)
----------- ----------- -----------
NET COMPREHENSIVE
FINANCING (COST)
INCOME:
Exchange gain 138,604 10,614 1,078
Exchange loss (55,083) (80,583) (8,189)
Interest expense (113,224) (110,154) (11,194)
Interest income 9,615 2,158 219
Monetary position
(loss) gain 78,583 72,867 7,405
----------- ----------- -----------
58,495 (105,098) (10,681)
----------- ----------- -----------
INCOME (LOSS) BEFORE
INCOME TAX 224,083 (202,342) (20,563)
INCOME TAX -- Deferred 88,262 (81,989) (8,332)
----------- ----------- -----------
NET income (LOSS) Ps. 135,821 (120,353) $ (12,231)
=========== =========== =============
BASIC EARNINGS (LOSS)
PER SHARE:
EARNINGS (LOSS)
PER SHARE Ps. 34.39 Ps. (17.93) $ (1.82)
=========== =========== =============
WEIGHTED AVERAGE
SHARES OUTSTANDING 3,950,000 6,712,023
=========== ===========
DILUTED EARNINGS
(LOSS) PER SHARE:
EARNINGS (LOSS)
PER SHARE Ps. 31.58 Ps. (17.93) $ (1.82)
=========== =========== =============
WEIGHTED AVERAGE
SHARES OUTSTANDING 4,310,110 6,712,023
=========== ===========
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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