Bestel Reports Third Quarter 1999 Earnings; Recurring Sales More Than Doubled Over 2Q99, Almost Achieving EBITDA Break-Even.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)--Nov. 5, 1999-- Bestel, S.A. de C.V., a facilities based, long distance 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 third quarter of 1999 grew to Ps. 150.6 million, an 861% increase over net sales in the third quarter of 1998. The majority of the revenue, Ps. 95.3 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 a partial booking of the US$ 53.0 million sale of four dark fibers to Global Crossing. When compared to the second quarter of 1999, operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. excluding depreciation and amortization showed a stable behavior increasing by Ps. 0.6 million or 1.5% to Ps. 44.1 million for the quarter. Net Income of Ps. 34.0 million for the third quarter 1999 reflects a growth of Ps. 11.1 million or 49% compared to the same quarter last year. "The company was close to 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 break-even 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," said Ruben Camiro, chief financial officer of Bestel. "Recurring revenues more than doubled this quarter reaching Ps. 55.3 million compared to Ps. 26.9 million during the second quarter of 1999. That, along with a stable cost structure, left us 9.3% or Ps. 5.2 million short of becoming EBITDA positive on recurring revenues this quarter, only 11 months after starting commercial operations. "We are confident in our ability to grow within the carriers' carrier model, achieve our long-term goals Long-term goals Financial goals expected to be accomplished in five years or longer. and maintain our clean net-income positive performance in the future," concluded Camiro. Construction on the second phase of the 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. , is advancing according to according toprep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. schedule, making our network the third largest 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. . These additional 1,800 kms are expected to be completed on time and on budget during the fourth quarter of 1999, allowing Bestel to have a fully diverse and redundant Repetitive. See redundancy. network. During the quarter, Ps. 188.3 million was invested in network expansion. For additional financial information go to www.bestel.com. 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. (Financial Statements follow) -0-
Bestel, S. A. de C. V. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
As of December 31, 1998 and September 30, 1999
(Thousands of Mexican Pesos of purchasing power of September 30, 1999)
----------------------------------------------------------------------
(MexGAAP) Thousands of
U.S. dollars
(Convenience
Translation)
December 31, September 30, September 30,
1998 1999 1999
(Unaudited) (Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents Ps. 351,456 Ps. 168,562 $ 18,009
Trade receivables net of
allowance for doubtful
accounts for Ps. 348
in 1999 76,943 265,163 28,329
Other accounts receivable 50,499 66,252 7,078
------------- ------------- -------------
Total current assets 478,898 499,977 53,416
------------- ------------- -------------
TRADE RECEIVABLES
FROM DARK FIBER SALES 10,497 2,167 232
TELECOMMUNICATIONS NETWORK
AND EQUIPMENT - Net:
Held for sale and
expansion 899,748 994,114 106,209
Retained for offering
products and services 787,601 872,580 93,224
------------- ------------- -------------
1,687,349 1,866,694 199,433
------------- ------------- -------------
PREOPERATING EXPENSES 40,281 38,313 4,093
CONCESSIONS AND
ORGANIZATION COSTS 53,881 51,501 5,502
DEFERRED DEBT ISSUANCE
COSTS, Net 42,256 40,625 4,340
OTHER ASSETS 3,465 11,002 1,175
------------- ------------- -------------
TOTAL Ps. 2,316,627 Ps. 2,510,279 $ 268,191
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable -
network construction Ps. 181,411 Ps. 92,663 $ 9,900
Due to Ferrocarriles
Nacionales de Mexico 29,536 12,481 1,333
Accrued expenses and other 25,873 30,263 3,233
Due to affiliates 854 388 40
------------- ------------- -------------
Total current liabilities 237,674 135,795 14,506
LONG-TERM DEBT 1,406,425 1,462,423 156,242
DEFERRED INCOME TAX 64,072 143,014 15,280
------------- ------------- -------------
Total liabilities 1,708,171 1,741,232 186,028
------------- ------------- -------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock, no par value,
3,950,000 issued and
outstanding at
December 31, 1998 and
September 30, 1999 348,764 348,764 37,261
Unpaid common stock (35) (35) (4)
Additional paid-in capital 20,387 20,387 2,178
Retained earnings 239,340 399,931 42,728
------------- ------------- -------------
Total stockholders' equity 608,456 769,047 82,163
------------- ------------- -------------
TOTAL Ps. 2,316,627 Ps. 2,510,279 $ 268,191
============= ============= =============
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 September 30, 1999)
----------------------------------------------------------------------
(MexGAAP) Thousands of
U.S. dollars
(Convenience
Translation)
Three Months
Three Months Ended Ended,
September 30, September 30,
1998 1999 1999
REVENUES:
Sales of dark fiber Ps. 15,672 Ps. 95,356 $ 10,188
Telecommunication services 53,267 5,691
Leasing , maintenance
and other 1,986 212
---------- ---------- ------------
15,672 150,609 16,091
COSTS AND EXPENSES:
Cost of sales of dark fiber 5,445 7,045 753
Cost of telecommunication
services 16,305 1,742
Network depreciation and
maintenance 45,518 4,863
General and administrative
expenses 559 29,951 3,200
---------- ---------- ------------
6,004 98,819 10,558
---------- ---------- ------------
OPERATING INCOME 9,668 51,790 5,533
---------- ---------- ------------
NET COMPREHENSIVE FINANCING
COST (INCOME):
Exchange gain (31,150) (6,892) (736)
Interest expense 46,939 5,015
Interest income (6,968) (744)
Monetary position
loss (gain) 13,276 (18,775) (2,006)
---------- ---------- ------------
(17,874) 14,304 1,529
---------- ---------- ------------
INCOME BEFORE INCOME TAX 27,542 37,486 4,004
INCOME TAX - Deferred 4,686 3,533 377
---------- ---------- ------------
NET INCOME Ps. 22,856 Ps. 33,953 $ 3,627
========== ========== ===========
BASIC EARNINGS PER SHARE:
EARNINGS PER SHARE: Ps. 5.81 Ps. 8.60 $ .92
========== ========== ===========
WEIGHTED AVERAGE SHARES
OUTSTANDING 3,936,374 3,950,000 3,950,000
========== ========== ===========
DILUTED EARNINGS PER SHARE:
EARNINGS PER SHARE Ps. 5.52 Ps. 7.89 $ .84
========== ========== ===========
WEIGHTED AVERAGE SHARES
OUTSTANDING 4,143,438 4,301,110 4,301,110
========== ========== ===========
----------------------------------------------------------------------
(MexGAAP) Thousands of
U.S. dollars
(Convenience
Translation)
Nine Months
Nine Months Ended Ended
September 30, September 30,
1998 1999 1999
REVENUES:
Sales of dark fiber Ps. 181,101 Ps. 403,632 $ 43,123
Telecommunication services 84,071 8,982
Leasing , maintenance
and other 6,082 650
----------- ----------- ------------
181,101 493,785 52,755
COSTS AND EXPENSES:
Cost of sales of dark fiber 45,018 41,603 4,445
Cost of telecommunication
services 34,424 3,678
Network depreciation and
maintenance 139,914 14,948
General and administrative
expenses 2,503 71,661 7,656
----------- ----------- ------------
47,521 287,602 30,727
----------- ----------- -----------
OPERATING INCOME 133,580 206,183 22,028
----------- ----------- -----------
NET COMPREHENSIVE FINANCING
COST (INCOME):
Exchange gain (51,029) (84,766) (9,056)
Interest expense 152,509 16,294
Interest income (15,934) (1,702)
Monetary position
loss (gain) 27,707 (92,046) (9,834)
----------- ----------- -----------
(23,322) (40,237) (4,298)
----------- ----------- ----------
INCOME BEFORE INCOME TAX 156,902 246,420 26,326
INCOME TAX - Deferred 36,060 85,829 9,169
----------- ----------- ----------
NET INCOME Ps. 120,842 Ps. 160,591 $ 17,157
=========== =========== ==========
BASIC EARNINGS PER SHARE:
EARNINGS PER SHARE Ps. 30.70 Ps. 40.66 $ 4.34
=========== =========== ==========
WEIGHTED AVERAGE SHARES
OUTSTANDING 3,936,374 3,950,000 3,950,000
=========== =========== ==========
DILUTED EARNINGS PER SHARE:
EARNINGS PER SHARE Ps. 29.16 Ps. 37.34 $ 3.99
=========== =========== ==========
WEIGHTED AVERAGE SHARES
OUTSTANDING 4,143,438 4,301,110 4,301,110
=========== =========== ==========
-0- Financial Statements are provided here as a reference, and have to be read in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with notes to financial statements and other notes otherwise available in current or previous filings of the company. |
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