Bestel Announces Third Quarter 2000 Earnings; EBITDA on Recurring Revenues Grew 131% Over 2Q00 and Became EBITDA Positive for the Year.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)--Nov. 13, 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 broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). and 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 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 third quarter of 2000 grew to Ps.104.3 million, a 74% increase over the third quarter of 1999. Due to the absence of non-recurring sales of dark fiber, total revenues decreased 36% during the third quarter of 2000 over the same period of 1999. As the peso appreciated versus the dollar during the third quarter of 2000, Bestel posted a large foreign exchange gain. As a result, net comprehensive financing income for the third quarter of 2000 compared favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. to net comprehensive financing cost for the corresponding period of 1999. 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 net income of Ps.3.5 million during the third quarter of 2000 compared to net income of Ps.36.9 during the third quarter of 1999. Net property plant and equipment was Ps.2,530.1 million at Sept. 30, 2000, a 24% increase compared to net property plant and equipment at Sept. 30, 1999. "Bestel is executing very well on its business plan thanks to an orchestrated or·ches·trate tr.v. or·ches·trat·ed, or·ches·trat·ing, or·ches·trates 1. To compose or arrange (music) for performance by an orchestra. 2. team effort. During the last six months, I have focused on building a business strategy and on aligning a·lign v. a·ligned, a·lign·ing, a·ligns v.tr. 1. To arrange in a line or so as to be parallel: align the tops of a row of pictures; aligned the car with the curb. our resources to execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. committed objectives," said 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. ; we are looking forward to continue in a growth path." Ruben Camiro, chief financial officer, commented, "After another quarter with solid sales growth (16% over the second quarter of 2000), Bestel 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 for the year (Ps.6.4 million). Our EBITDA margin this quarter (8.3%) is twice the margin we posted on the second quarter of 2000 (4.2%)." Bestel is a Mexican 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 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 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 and point to multipoint Refers to a communications line (network) that provides a path from one location to many. A cellphone is an example of a multipoint system. See multipoint line. Contrast with point-to-point. wireless frequencies for last mile access. Statements made in this press release that state the Company's or management's intentions, beliefs, expectations or predictions for the future 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. . Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the Company's actual results to differ materially from those projected in such forward-looking statements. For further reference please review Bestel's filings with the Securities and Exchange Commission including Bestel's annual report on Form 20-F for the year ended Dec. 31, 1999, and in particular Item 9 under the heading "Risk Factors."
(Figures in pesos of purchasing power of Sept. 30, 2000.
Financial Statements follow)
Bestel, S. A. de C. V. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
As of Dec. 31, 1999, and Unaudited Sept. 30, 2000
(Thousands of Mexican Pesos of Purchasing Power of Sept. 30, 2000,
except share data)
----------------------------------------------------------------------
(Mex GAAP) Thousands of
U.S. dollars
(Convenience
December 31, September 30, Translation)
1999 2000 2000
----------- ----------- ------------
(Unaudited) (Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents Ps. 106,878 Ps. 152,827 $ 16,189
Trade receivables, net of
allowance for doubtful
accounts of Ps.369 and
Ps.730, respectively 291,081 115,809 12,267
Other accounts receivable 126,561 127,295 13,484
----------- ----------- ------------
Total current assets 524,520 395,931 41,940
TRADE RECEIVABLES FROM
DARK FIBER SALES 2,295 2,167 229
TELECOMMUNICATIONS NETWORK
AND EQUIPMENT - Net 2,642,663 2,530,087 268,017
PREOPERATING COSTS, less
accumulated amortization
of Ps.5,456 and Ps.8,480,
respectively 40,113 37,140 3,934
CONCESSIONS AND
ORGANIZATION COSTS, less
accumulated amortization
of Ps.6,606 and
Ps.9,280, respectively 55,240 54,067 5,727
DEFERRED DEBT ISSUANCE
COSTS, less accumulated
amortization of Ps.9,306
and Ps.14,949,
respectively 40,465 43,081 4,563
OTHER ASSETS 5,821 11,875 1,258
----------- ----------- ------------
TOTAL Ps. 3,311,117 Ps. 3,074,348 $ 325,668
=========== =========== ============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of
long-term debt Ps. 22,146 Ps. 306,047 $ 32,420
Due to telecommunications
network construction
vendors 249,286 56,915 6,028
Accounts payable-trade 65,544 90,548 9,591
Accrued expenses and other 48,857 95,902 10,158
Due to affiliates 124,180 -- --
----------- ----------- ------------
Total current liabilities 510,013 549,412 58,197
LONG-TERM DEBT 1,730,039 1,474,333 156,179
DEFERRED INCOME TAX 151,523 172,517 18,275
----------- ----------- ------------
Total liabilities 2,391,575 2,196,262 232,651
----------- ----------- ------------
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Common stock, no par value,
5,568,922 and 8,811,328
shares issued and
outstanding at Dec. 31,
1999, and Sept. 30,
2000, respectively 580,540 973,914 103,168
Unpaid common stock (99,101) (341,679) (36,194)
Additional paid-in capital 30,815 47,424 5,023
Retained earnings 407,288 288,411 30,552
Cumulative effect of
deferred income tax -- (89,984) (9,532)
----------- ----------- ------------
Total shareholders' equity 919,542 878,086 93,017
----------- ----------- ------------
TOTAL Ps. 3,311,117 Ps. 3,074,348 $ 325,668
=========== =========== ============
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 Sept. 30,
2000, except share and per share data)
----------------------------------------------------------------------
(Mex GAAP) Thousands of
Three Months Ended U.S. Dollars
September 30, (Convenience
-------------------------- Translation)
1999 2000 2000
----------- ----------- ----------
REVENUES:
Sales of dark fiber Ps. 103,604 Ps. -- $ --
Telecommunications and
data services 60,032 104,328 11,051
----------- ----------- ----------
163,636 104,328 11,051
----------- ----------- ----------
COSTS AND EXPENSES:
Cost of sales of dark fiber 7,654 -- --
Interconnection costs 17,715 29,083 3,080
Network maintenance 11,363 18,328 1,941
Depreciation and
amortization 38,091 48,548 5,142
Sales, general and
administrative expenses 32,541 48,282 5,114
----------- ----------- ----------
107,364 144,241 15,277
----------- ----------- ----------
OPERATING INCOME (LOSS) 56,272 (39,913) (4,226)
----------- ----------- ----------
NET COMPREHENSIVE FINANCING (COST) INCOME:
Exchange gain 19,558 136,820 14,493
Exchange loss (12,070) (46,019) (4,874)
Interest expense (50,999) (59,664) (6,320)
Interest income 7,570 2,190 231
Monetary position gain 20,399 36,712 3,888
----------- ----------- ----------
(15,542) 70,039 7,418
----------- ----------- ----------
OTHER (INCOME) EXPENSE -- (6,256) (662)
INCOME (LOSS) BEFORE
INCOME TAX 40,730 36,382 3,854
INCOME TAX EXPENSE
(BENEFIT) - Deferred 3,838 32,848 3,479
----------- ----------- ----------
NET INCOME (LOSS) Ps. 36,892 Ps. 3,534 $ 375
=========== =========== ==========
BASIC EARNINGS (LOSS) PER SHARE:
EARNINGS (LOSS) PER SHARE Ps. 9.34 Ps. 0.51 $ 0.05
=========== =========== ==========
WEIGHTED AVERAGE SHARES
OUTSTANDING 3,950,000 6,868,767
=========== ===========
DILUTED EARNINGS (LOSS) PER SHARE:
EARNINGS (LOSS) PER SHARE Ps. 8.58 Ps. 0.47 $ 0.05
=========== =========== ==========
WEIGHTED AVERAGE
SHARES OUTSTANDING 4,301,110 7,468,431
=========== ===========
Bestel, S. A. de C. V. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Thousands of Mexican Pesos of Purchasing Power of Sept. 30,
2000, except share and per share data)
----------------------------------------------------------------------
(Mex GAAP) Thousands of
Nine Months Ended U.S. Dollars
September 30, (Convenience
-------------------------- Translation)
1999 2000 2000
----------- ----------- ----------
REVENUES:
Sales of dark fiber Ps. 438,546 Ps. 18,333 $ 1,942
Telecommunications and
data services 97,951 252,686 26,767
----------- ----------- ----------
536,497 271,019 28,709
----------- ----------- ----------
COSTS AND EXPENSES:
Cost of sales of dark fiber 45,201 1,848 195
Interconnection costs 37,401 86,089 9,119
Network maintenance 47,697 52,651 5,577
Depreciation and
amortization 104,319 143,404 15,191
Sales, general and
administrative expenses 77,859 125,845 13,331
----------- ----------- ----------
312,477 409,837 43,413
----------- ----------- ----------
OPERATING INCOME (LOSS) 224,020 (138,818) (14,704)
----------- ----------- ----------
NET COMPREHENSIVE FINANCING (COST) INCOME:
Exchange gain 160,532 199,629 21,147
Exchange loss (68,434) (179,994) (19,067)
Interest expense (165,701) (171,701) (18,188)
Interest income 17,312 4,384 464
Monetary position gain 100,007 125,678 13,313
----------- ----------- ----------
43,716 (22,004) (2,331)
----------- ----------- ----------
OTHER (INCOME) EXPENSE -- (6,256) (662)
INCOME (LOSS) BEFORE
INCOME TAX 267,736 (154,566) (16,373)
INCOME TAX EXPENSE
(BENEFIT) - Deferred 90,253 (35,689) (3,780)
----------- ----------- ----------
NET INCOME (LOSS) Ps. 174,483 Ps.(118,877) $ (12,593)
=========== =========== ==========
BASIC EARNINGS (LOSS) PER SHARE:
EARNINGS (LOSS) PER SHARE Ps. 44.17 Ps. (17.31) $ (1.83)
=========== =========== ==========
WEIGHTED AVERAGE SHARES
OUTSTANDING 3,950,000 6,868,767
=========== ===========
DILUTED EARNINGS (LOSS) PER SHARE:
EARNINGS (LOSS) PER SHARE Ps. 40.57 Ps. (17.31) $ (1.83)
=========== =========== ==========
WEIGHTED AVERAGE SHARES
OUTSTANDING 4,310,110 6,868,767
=========== ===========
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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