COMCEL and OCCEL Report First Quarter 1999 Results.BOGOTA Bo·go·tá The capital and largest city of Colombia, in the central part of the country on a high plain in the eastern Andes. It was a center of Chibcha culture before the Spanish established a settlement in 1538. Population: 6,980,000. , Colombia--(BUSINESS WIRE)--April 27, 1999-- Comunicacion Celular S.A., COMCEL COMCEL Comunicaciones Celulares (Guatemala) , the leading cellular telecommunications company See telecom company. in Colombia Colombia (kəlŭm`bēə, Span. kōlōm`byä), officially Republic of Colombia, republic (2005 est. pop. 42,954,000), 439,735 sq mi (1,138,914 sq km), NW South America. Bogotá is the capital and largest city. , and Occidente y Caribe Celular S.A., OCCEL, the leading cellular company in the Western Region of Colombia and a subsidiary of COMCEL, today reported financial results for the first quarter of fiscal 1999. The Company also announced that on March 26, 1999, the General Shareholders Meeting of COMCEL authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: the merger of OCCEL into COMCEL pursuant to which COMCEL is acquiring the remaining 31.6% (35.0% on a fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis) of OCCEL in exchange for shares of COMCEL and gave approval for the Company to proceed with the necessary legal and regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. steps to consummate To carry into completion; to fulfill; to accomplish. A Common-Law Marriage is consummated when the parties live in a manner intended to bring about public recognition of their relationship as Husband and Wife. the merger, which is expected to occur before year end. On the same date, the General Shareholders Meeting of OCCEL authorized the merger. "We are pleased that the two General Assemblies have agreed on these key steps to merge See mail merge and concatenate. COMCEL and OCCEL, which we believe is in the best long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. interest of the two companies, their shareholders and their bondholders. The consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. of the merger will further solidify so·lid·i·fy v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. COMCEL's position as the leading cellular provider in Colombia and will provide it with a strategic advantage in the future," said Peter H. Burrowes, President and Chief Executive Officer of COMCEL and OCCEL. COMCEL CONSOLIDATED con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: : First Quarter, 1999 The number of subscribers at the end of the first quarter ended March 31, 1999, numbered 724,117. The Company also reported that its annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. churn rate (1) The percentage of customers who cancel their online, cellphone or other subscription service during a certain time period. (2) The percentage of employees who leave the company during a certain time period. See churning. was 20.5%. Based on spectrum fees paid as of the fourth quarter of 1998, COMCEL's total subscriber subscriber, n the person, usually the employee, who represents the family unit in relation to the prepayment plan. Other family members are dependents. Also called certificate holders or enrollees. base now represents a 54.7% market share in the Eastern and Western Regions combined. Revenue for the first quarter was Ps.128,567(1) million (US$83.8 million) compared to Ps.147,552 million (US$96.2 million) in the first quarter of 1998. The revenue decrease is associated with the slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. of the Colombian economy and its negative impact on airtime air·time n. 1. The time during which a radio or television station is broadcasting. Also called airspace. 2. The time at which a radio or television program is broadcast. consumption. 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 for the first quarter of 1999 was Ps.36,212 million (US$23.6 million) compared to 1998 first quarter EBITDA of Ps.42,115 million (US$27.5 million). EBITDA margin for the quarter was 28.2%, compared to 28.5% in 1998. In the first quarter of 1999, COMCEL recorded a foreign exchange gain of Ps.8,016 million (US$5.2 million) compared to a loss of Ps. 30,647 million (US$20 million) in the first quarter of 1998. Net income for the first quarter of 1999 was Ps.7,511 million (US$4.9 million) compared to a net income of Ps.4,144 million (US$2.7 million) in the year-ago period. At March 31, 1999, COMCEL's long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. was Ps.1,228,890 million (US$801.4 million), while accounts receivables accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying were Ps.195,024 million (US$127.2 million) compared to Ps.198,358 million (US$129.3 million) as of December December: see month. 31, 1998. Commenting on these results, Burrowes said, "While the Colombian economy remains weak, we have undertaken aggressive cost cutting measures in the quarter to reflect current realities, including a significant reduction in headcount head count or head·count n. 1. The act of counting people in a particular group. 2. The number of people counted in this way. Noun 1. at both companies and a reduction in advertising and other administrative expenses." Burrowes continued: "Consistent with our objective of profitable growth, we have also undertaken a number of initiatives to stimulate stimulate /stim·u·late/ (stim´u-lat) to excite functional activity. stim·u·late v. To arouse a body or a responsive structure to increased functional activity. revenue growth in the near-term near-term adj. Of, for, or involving a short period of time in the near future. . Specifically, we have launched special promotions consisting of a 50% discount on land to mobile and prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. off-peak off-peakadj. Not in the period of most frequent or heaviest use: lower rates for telephone calls made during off-peak hours; travelers who take advantage of off-peak fares. traffic in order to encourage subscribers to increase their consumption. Separate from the promotions mentioned above, we have also increased the cost of entry so as to ensure the acquisition of quality subscribers, reduce the cost of acquisition and better control churn churn: see butter. , which we are pleased to report has returned this quarter to more traditional levels." COMCEL (EASTERN REGION): First Quarter, 1999 The number of subscribers at the end of the first quarter, ended March 31, 1999, numbered 513,718, compared to 486,288 subscribers in the year ago quarter. That represents a growth of 6%. In addition, the annualized churn rate fell to 20.2% from 30.2% in the first quarter of 1998. Based on spectrum fees paid as of the fourth quarter of 1998, COMCEL's subscriber base in the East now represents a 54.9% market share. Revenue for the first quarter of 1999, was Ps.98,667 million (US$64.3 million) compared to Ps.147,552 million (US$96.2 million) in the first quarter of 1998. EBITDA for the first quarter of 1999 was Ps.29,620 million (US$19.3 million) compared to 1998 first quarter EBITDA of Ps.42,115 million (US$27.5 million). EBITDA margin for the quarter was 30%, compared to 28.5% in 1998. OCCEL (WESTERN REGION): First Quarter, 1999 At the end of the first quarter of 1999 OCCEL had 210,399 subscribers in the Western Region, an increase of 78,546 subscribers from its 131,853 subscribers in the year ago quarter. That represents a growth of 60%. The Company also reported that annualized churn rate was 21.4% for the first quarter of 1999. Based on spectrum fees paid as of the fourth quarter of 1998, OCCEL's subscriber base in the West now represents a 54.1% market share. OCCEL's first quarter revenue was Ps.45,040 million (US$29.4 million) compared to Ps.38,669 million (US$25.2 million) in the first quarter of 1998. EBITDA in the first quarter was Ps.6,592 million (US$4.3 million) compared to EBITDA of Ps.13,264 million (US$8.6 million) in the first quarter of 1998. EBITDA margin in the first quarter was 14.6%, compared to a margin of 34.3% posted in the year ago period. In the first quarter of 1999, OCCEL recorded a foreign exchange gain of Ps.2,450 million (US$1.6 million) compared to a loss of Ps. 17,002 million (US$11.1 million) in the first quarter of 1998. Net income for the first quarter of 1999 was Ps.5,079 million (US$3.3 million) compared to a net loss of Ps.10,018 million (US$6.5 million) in the year-ago period. At March 31, 1999, OCCEL's long-term debt was Ps.360,560 million (US$235.1 million), while accounts receivables were Ps.58.441 million (US$38.1 million) for the quarter compared to Ps.52,696 million (US$34.4 million) as of December 31, 1998. Other On April 16, 1999, Louis Louis, titular duke of Burgundy Louis, 1682–1712, titular duke of Burgundy; grandson of King Louis XIV of France. He became heir to the throne on the death (1711) of his father, Louis the Great Dauphin. A. Tanguay, President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of Bell Canada Bell Canada Enterprises (TSX: BCE, NYSE: BCE), legally BCE Inc., is a major Canadian telecommunications company. Through its subsidiaries including Bell Canada, Bell Aliant, Northwestel, Télébec, and NorthernTel, it is the incumbent local exchange carrier for International (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : BCICF), was named non-executive non-executive adj non-executive director → direttore m senza potere esecutivo Chairman of COMCEL and Serge serge 1 n. A twilled cloth of worsted or worsted and wool, often used for suits. [Middle English sarge, from Old French, from Vulgar Latin *s Rouleau rouleau /rou·leau/ (roo-lo´) pl. rouleaux´ [Fr.] an abnormal group of red blood cells adhering together like a roll of coins. rouleau pl. rouleaux [Fr.] a roll of red blood cells resembling a pile of coins. , BCI's Vice-President vice president or vice-pres·i·dent n. Abbr. VP 1. An officer ranking next below a president, usually empowered to assume the president's duties under conditions such as absence, illness, or death. 2. , Wireless, was named Vice Chairman and Special Advisor to Peter H. Burrowes. Messrs. Tanguay and Rouleau currently serve as BCI's representatives on the COMCEL Board of Directors. Rouleau served as Chief Operating Officer of COMCEL on secondment Noun 1. secondment - a speech seconding a motion; "do I hear a second?" endorsement, indorsement, second agreement - the verbal act of agreeing 2. from BCI BCI Bat Conservation International BCI Brain-Computer Interface BCI Business Continuity Institute BCI Business Cycle Indicators BCI Banco de Credito e Inversiones (Chilean bank) BCI Bell Canada International during the start-up Start-up The earliest stage of a new business venture. of the Company, from July July: see month. 1994 to December 1995. Burrowes welcomed the appointments saying, "I intend to make full use of the experience and expertise of Louis and Serge in sustaining COMCEL's leadership position in the Colombian cellular industry." As previously announced, COMCEL was unable to comply with certain financial covenants contained in its Senior Secured Term Loan Agreement dated December 23, 1998 (the "Loan Agreement") in the first quarter due to the economic slowdown in Colombia, which has been the worst in the last 67 years. In addition, COMCEL anticipated that it may not have been able to comply with certain of its financial covenants during the second and third quarters of 1999 for the same reason. COMCEL obtained a waiver The voluntary surrender of a known right; conduct supporting an inference that a particular right has been relinquished. The term waiver is used in many legal contexts. for the first quarter and amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. the requirements of the second and third quarters. COMCEL expects to be able to comply with the revised financial covenants in the second and third quarters of 1999 as well as to comply with its future financial covenants as currently set forth in the Loan Agreement. "This has been a challenging quarter not only for COMCEL, but for all companies in Colombia as a result of the weak economy. However, as a result of aggressive cost-cutting and revenue-enhancing measures implemented at the beginning of the year, COMCEL expects to comply with the revised financial covenants in the second and third quarters of 1999 as well as with its future financial covenants as currently set forth in the Loan Agreement," said Burrowes. Burrowes continued: "Notwithstanding the economic difficulties in Colombia in recent months, COMCEL has continued to increase its EBITDA margin throughout the first quarter. This continued EBITDA margin improvement is a testament to the effectiveness of the actions taken by COMCEL in recent months as well to the Company's strong brand awareness, innovative product offerings and leading customer service." Comunicacion Celular S.A., COMCEL provides technologically advanced digital cellular telecommunications services In telecommunication, the term telecommunications service has the following meanings: 1. Any service provided by a telecommunication provider. 2. in Colombia. COMCEL is one of two providers of cellular telecommunications services in the country's Eastern Region, representing approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 18.0 million people and including Santafe de Bogota, the country's capital. COMCEL's network currently covers approximately 79.1% of the population of the Eastern Region of Colombia. COMCEL has been providing cellular services since July 1, 1994. COMCEL owns 68.4% of OCCEL (65% on a fully diluted basis). OCCEL is one of two providers of advanced digital cellular telecommunications services in the Western Region of Colombia. The Western Region has approximately 15.2 million people (36 % of Colombia's population), including the economic centers of Medellin Me·del·lín A city of northwest-central Colombia northwest of Bogotá. Founded in 1675, it is a coffee market in a mining region. Population: 1,980,000. Noun 1. and Cali, with 3.1 million and 2.6 million residents respectively. OCCEL has been providing cellular services since September September: see month. 1994. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: The statements contained in this release which are not historical facts 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. that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by forward-looking statements. These risks are described in the Company's Securities and Exchange Commission filings. (1) During the quarter, the Peso appreciated against the US Dollar by 0.6%, compared to a devaluation devaluation, decreasing the value of one nation's currency relative to gold or the currencies of other nations. It is usually undertaken as a means of correcting a deficit in the balance of payments. of 5% in last year's period. Pesos were translated at Ps. 1,533.51 per US Dollar, the representative market rate calculated by the Colombian Superintendency Su`per`in`tend´en`cy n. 1. The act of superintending; superintendence. of Banking for March 31, 1999. -0-
COMUNICACION CELULAR S.A. COMCEL - CONSOLIDATED (1)
Selected Financial Data
(Unaudited, in millions and under local GAAP)
Three months ended March 31,
----------------------------------------------
----------------------------------------------
1999 (2) 1998 (3)
----------------------------------------------
----------------------------------------------
Revenues Ps 128,567 US$ 83.8 Ps 147,552 US$ 96.2
Operating profit (loss) (238) (0.2) 25,792 16.8
Net interest expense (44,336) (28.9) (22,387) (14.6)
Foreign exchange gain
(loss) 8,016 5.2 (30,647) (20.0)
Net monetary correction 59,240 38.6 33,821 22.1
Other (15,171) (9.9) (2,435) (1.6)
Net earnings (loss) 7,511 4.9 4,144 2.7
EBITDA 36,212 23.6 42,115 27.5
Three Months Ended March 31,
COMCEL - Eastern and Western Regions 1999 1998
----------------------------------------- ----------------------------
----------------------------------------- ----------------------------
Number of subscribers at end of period 724,117 486,288
Average monthly minutes of use per subscriber 70 96
Service revenue per average subscriber Ps (4) 59,000 85,000
Penetration 2.18% 2.76
Annualized churn rate 20.5% 30.2%
(1) Figures are consolidated to reflect Comcel's 68.4% acquisition of
Occel (65% fully diluted) on December 23, 1999.
(2) Colombian peso amounts for the periods ending March 31, 1999 and
1998 have been translated into US dollars solely for the
convenience of the reader at the average US$/Colombian Peso
exchange rate of 1,533.51.
(3) Numbers have been restated into constant Colombian pesos as of
March 31, 1999 in order to express all financial information in
purchasing power as of that date.
(4) Service revenue per subscriber is defined as total revenue minus
equipment sales divided by the average number of subscribers in
the period, stated in historical pesos.
COMCEL - Eastern Region
Selected Financial Data
(Unaudited, in millions and under local GAAP)
Three months ended March 31,
---------------------------------------------
---------------------------------------------
1999 (1) 1998 (2)
---------------------------------------------
---------------------------------------------
Revenues Ps 98,667 US$ 64.3 Ps 147,552 US$ 96.2
EBITDA 29,620 19.3 42,115 27.5
Three Months Ended March 31,
Comcel - Eastern Region 1999 1998
----------------------------------------- ----------------------------
----------------------------------------- ----------------------------
Number of subscribers at end of period 513,718 486,288
Average monthly minutes of use per subscriber 61 96
Service revenue per average subscriber Ps (3) 60,000 85,000
Penetration (Eastern Region) 2.85% 2.76%
Annualized churn rate 20.2% 30.2%
OCCEL - Western Region
Selected Financial Data
(Unaudited, in millions and under local GAAP)
Three months ended March 31,
----------------------------------------------
----------------------------------------------
1999 (1) 1998 (2)
----------------------------------------------
----------------------------------------------
Revenues Ps 45,040 US$ 29.4 Ps 38,669 US$ 25.2
Operating profit (loss) (2,921) (1.9) 3,676 2.4
Net interest expense (10,881) (7.1) (10,072) (6.6)
Foreign exchange gain
(loss) 2,450 1.6 (17,002) (11.1)
Net monetary correction 19,629 12.8 18,647 12.2
Other (3,198) (2.1) (5,267) (3.4)
Net earnings (loss) 5,079 3.3 (10,018) (6.5)
EBITDA 6,592 4.3 13,264 8.6
Three Months Ended March 31,
Occel - Western Region 1999 1998
----------------------------------------- ----------------------------
----------------------------------------- ----------------------------
Number of subscribers at end of period 210,399 131,853
Average monthly minutes of use per subscriber 93 116
Service revenue per avg.subs. (Ps)(3) 72,000 92,000
Penetration (Western Region) 1.39% 0.90%
Annualized churn rate 21.4% 17.6%
(1) Colombian peso amounts for the periods ending March 31, 1999 and
1998 have been translated into US dollars solely for the
convenience of the reader at the average US$/Colombian Peso
exchange rate of 1,533.51.
(2) Numbers have been restated into constant Colombian pesos as of
March 31, 1999 in order to express all financial information in
purchasing power as of that date.
(3) Service revenue per subscriber is defined as total revenue minus
equipment sales divided by the average number of subscribers in
the period, stated in historical pesos.
COMUNICACION CELULAR S.A. COMCEL
CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended Three months ended
March 31, 1998 March 31, 1999
-------------- ------------------------------
Millions of Millions of Thousand of
Colombian Colombian U.S.dollars
pesos of pesos of (Convenience
March 31, 1999 March 31, 1999 Translation)
Purchasing Purchasing
Power Power
-------------- ------------------------------
Revenues
Telecommunications
Services:
Service Revenues Ps 138,330 Ps 125,932 US$ 82,119
Equipment Sales 9,222 2,635 1,718
Total Revenues 147,552 128,567 83,837
-------- -------- --------
Cost of revenues
Cost of Telecommunication
Services 20,452 26,850 17,509
Amortization of Concession 8,654 12,923 8,427
Cost of Equipment Sold 27,247 15,064 9,823
-------- -------- --------
Total Cost of Revenues 56,353 54,837 35,759
-------- -------- --------
Gross profit 91,199 73,730 48,078
-------- -------- --------
Operating expenses
Selling 35,152 19,874 12,960
Administrative 21,132 39,336 25,651
Technical 1,558 1,274 831
Depreciation 7,565 13,484 8,793
-------- -------- --------
Total Operating Expenses 65,407 73,968 48,235
-------- -------- --------
OPERATING INCOME 25,792 (238) (156)
-------- -------- --------
OTHER INCOME ( Expense ):
Interest, net (22,387) (44,336) (28,911)
Financing expenses (1,634) (8,944) (5,832)
Foreign Exchange loss,
net (30,647) 8,016 5,227
Other 922 (1,773) (1,156)
-------- -------- --------
Total Other Income
( Expense ) (53,746) (47,037) (30,672)
-------- -------- --------
NET MONETARY CORRECTION 33,821 59,240 38,631
-------- -------- --------
INCOME (LOSS) BEFORE
INCOME TAX 5,867 11,965 7,803
INCOME TAX (1,722) 2,848 1,857
-------- -------- --------
MINORITY INTEREST 0 (1,605) (1,047)
NET INCOME (LOSS) FOR
THE PERIOD Ps 4,144 Ps 7,511 US$ 4,898
======== ======== ========
NET INCOME (LOSS)
PER SHARE Ps 0.02 Ps 0.04
======== ========
WEIGHTED AVG. NUMBER
OF SHARES OUTSTANDING
(in millions) 177,634 178,268
======== ========
COMUNICACION CELULAR S.A COMCEL
CONSOLIDATED BALANCE SHEETS
Year ended Three months ended
December 31,1998 March 31, 1999
-------------- ------------------------------
Millions of Millions of Thousand of
colombian pesos colombian pesos U.S. Dollars
of March 31, of March 31, (Convenience
1999 1999 Translation)
purchasing purchasing
power power
-------------- ------------------------------
ASSETS
CURRENT ASSETS:
Cash and cash
equivalents Ps 14,463 Ps 11,385 US$ 7,424
Time Deposit 15,123 14,659 9,559
Accounts receivable, net 198,358 195,024 127,175
Inventories, net 39,925 28,289 18,447
Prepaid expenses 28,298 22,030 14,366
--------- --------- ---------
Total current assets 296,166 271,387 176,971
ADVANCES TO CONTRACTORS 9,985 10,037 6,545
PROPERTY, PLANT AND
EQUIPMENT, NET 481,002 477,193 311,177
GOOD WILL 499,643 491,172 320,293
INTANGIBLE ASSET, NET 802,483 789,505 514,835
DEFERRED CHARGES, NET 73,789 78,462 51,165
OTHER ASSETS 485 3,041 1,983
VALUATION OF ASSETS 49,498 49,499 32,278
TOTAL ASSETS Ps 2,213,050 Ps 2,170,296 1,415,247
========= ========= =========
MEMORANDUM ACCOUNTS Ps 3,562,851 Ps 3,848,199 2,509,406
========= ========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes payable to banks Ps 121,648 Ps 112,052 US$ 73,069
Long term debt due
within one year 74,895 73,268 47,778
Accounts payable 116,905 102,569 66,885
Income tax and other
taxes 16,921 24,670 16,087
Payroll and vacation
pay 2,111 589 384
Accrued expenses 15,992 27,144 17,701
Other liabilities 12,433 21,203 13,826
--------- --------- ---------
Total current
liabilities 360,905 361,495 235,730
LONG-TERM DEBT 1,208,868 1,155,622 753,580
MINORITY INTEREST 23,809 25,415 16,573
SHAREHOLDERS' EQUITY 619,468 627,764 409,364
--------- --------- ---------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY Ps 2,213,050 Ps 2,170,296 US$ 1,415,247
========= ========= =========
MEMORANDUM ACCOUNTS Ps 3,562,851 Ps 3,848,199 US$ 2,509,406
========= ========= =========
COMUNICACION CELULAR S.A. CONSOLIDATED
STATEMENTS OF CASH FLOWS
Three months ended Three months ended
March 31, 1998 March 31, 1999
-------------- ------------------------------
Millions of Millions of Thousand of
Colombian pesos Colombian pesos U.S. Dollars
of March 31, of March 31, (Convenience
1999 1999 Translation)
Purchasing Purchasing
power power
-------------- ------------------------------
OPERATING ACTIVITIES:
Net income (loss) Ps 4,144 Ps 7,511 US$ 4,992
Adjustments to
reconcile net income
(loss) to net cash
provided by
(used in) operating
activities:
Depreciation 7,357 13,485 8,794
Amortization of
license 8,414 12,923 8,427
Amortization of
deferred charges 43,795 22,085 14,402
Amortization of Good
Will 0 8,318 5,424
Net monetary
correction (34,893) (59,240) (38,630)
Unrealized foreign
exchange loss 28,489 (7,173) (4,678)
Adjustment of fixed
assets 0 4,554 2,970
Minority Interest 0 1,605 1,047
Accrued interest on bonds 10,087 19,264 12,562
Acquisition of deferred
charges (33,605) (22,639) (14,763)
Changes in operating assets
and liabilities:
Accounts receivable, net (38,737) (6,399) (4,173)
Inventories, net (2,716) 9,678 6,311
Prepaid expenses (2,540) 1,368 892
Other assets 0 (2,398) (1,564)
Accounts payable (12,849) (3,143) (2,050)
Income tax and other taxes (370) 8,578 5,594
Payroll and vacation pay (187) (1,418) (925)
Accrued expenses (187) 2,658 1,733
Other liabilities 7,335 2,218 1,446
------- ------- -------
Net cash provided by
(used in) operating
activities (309) 11,835 7,718
------- ------- -------
FINANCING ACTIVITIES:
Increase (decrease)
in short-term debt 17,673 (3,626) (2,365)
Payment of long-term debt (4,679) (5,249) (3,423)
Issuance of long-term debt 0 1,000 652
------- ------- -------
Net cash provided by
financing activities 12,994 (7,875) (5,135)
------- ------- -------
INVESTING ACTIVITIES:
Sales of property, plant
and equipment 0 46 30
Acquisition of property,
plant and equipment (28,918) (5,899) (3,847)
Payment of Concession
renewal 0 (166) (108)
Increase in advances to
contractors (1,418) (259) (169)
Other (138) (50) (33)
------- ------- -------
Net cash used in investing
activities (30,474) (6,328) (4,127)
------- ------- -------
Effect of constant peso
restatement (1,819) (708) (462)
------- ------- -------
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS (17,788) (3,076) (2,006)
CASH AND CASH EQUIVALENTS:
At the beginning of the
period 30,524 14,461 9,430
------- ------- -------
At the end of the
period Ps 12,736 Ps 11,385 US$ 7,424
======= ======= =======
OCCIDENTE Y CARIBE CELULAR S.A. - OCCEL
STATEMENTS OF OPERATIONS
Three months ended Three months ended
March 31,1998 March 31,1999
-------------- ------------------------------
Millions of Millions of Thousands of
Colombian Colombian U.S. dollars
pesos of pesos of (convenience
March 31, 1999 March 31, 1999 translation)
purchasing purchasing
power power
-------------- ------------------------------
Revenues
Telecommunications
services:
Service Revenues Ps 38,014 Ps 43,255 US$ 28,207
Equipment sales 655 1,785 1,164
------- ------- -------
Total Revenues 38,669 45,040 29,371
------- ------- -------
Cost of revenues
Cost of Telecommunications
Services 8,788 9,202 6,001
Amortization of concession 4,475 4,408 2,874
Cost of Equipment Sold 677 8,682 5,662
------- ------- -------
Total Cost of Revenues 13,940 22,292 14,537
------- ------- -------
Gross profit 24,729 22,748 14,834
------- ------- -------
Operating expenses
Selling 7,794 7,251 4,728
Administrative 9,796 14,065 9,172
Depreciation 3,463 4,353 2,839
------- ------- -------
Total Operating Expenses 21,053 25,669 16,739
------- ------- -------
OPERATING INCOME 3,676 (2,921) (1,905)
------- ------- -------
OTHER INCOME (Expense):
Interest, net (10,072) (10,881) (7,095)
Financing expenses (573) (636) (415)
Foreign Exchange gain loss,
net (17,002) 2,450 1,598
Other (4,182) (2,360) (1,539)
------- ------- -------
Total Other Income
(Expense) (31,829.00) (11,427.00) (7,452.00)
------- ------- -------
NET MONETARY CORRECTION 18,647 19,629 12,800
------- ------- -------
INCOME (LOSS) BEFORE INCOME
TAX (9,506) 5,281 3,444
INCOME TAX 512 202 132
------- ------- -------
NET INCOME (LOSS) FOR
THE PERIOD Ps (10,018) Ps 5,079 US$ 3,312
======= ======= =======
NET INCOME (LOSS) PER
SHARE Ps (120.98) Ps 61.34
======= =======
WEIGHTED AVG. NUMBER OF
SHARES OUTSTANDING
(in millions) 82.8 82.8
======= ========
OCCIDENTE Y CARIBE CELULAR S.A. - OCCEL
BALANCE SHEETS
Year ended Three months ended
December 31, 1998 March 31, 1999
-------------- ------------------------------
Millions of Millions of Thousands of
Colombian pesos Colombian pesos U.S. dollars
of March 31, of March 31, (convenience
1999 1999 translation)
purchasing purchasing
power power
-------------- ------------------------------
ASSETS
CURRENT ASSETS:
Cash and cash
equivalents Ps 6,402 Ps 2,620 US$ 1,708
Time deposit 15,123 14,659 9,559
Accounts receivable,
net 52,696 58,441 38,109
Inventories, net 13,541 10,049 6,553
Prepaid expenses 11,999 11,777 7,681
------- ------- -------
Total current
assets 99,761 97,546 63,610
ADVANCES TO CONTRACTORS 4,202 3,489 2,275
PROPERTY, PLANT AND
EQUIPMENT, NET 147,227 144,400 94,163
INTANGIBLE ASSET, NET 273,968 269,654 175,841
DEFERRED CHARGES, NET 8,815 9,210 6,006
OTHER ASSETS 24 2,321 1,514
VALUATION OF ASSETS 41,682 41,683 27,181
------- ------- -------
TOTAL ASSETS Ps 575,679 Ps 568,303 US$ 370,590
======= ======= =======
MEMORANDUM ACCOUNTS Ps 794,767 Ps 753,239 US$ 491,186
======= ======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes payable to
banks Ps 52,105 Ps 42,735 US$ 27,867
Long term debt due
within one year 9,040 10,993 7,169
Accounts Payable 57,934 66,555 43,400
Income tax and other
taxes 6,561 7,011 4,572
Payroll and Vacation Pay 813 339 221
Accrued Expenses 7,975 8,068 5,261
Other Liabilities 654 2,608 1,701
------- ------- -------
Total current
liabilities 135,082 138,309 90,191
LONG TERM DEBT 365,251 349,567 227,952
SHAREHOLDERS' EQUITY 75,346 80,427 52,447
------- ------- -------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY Ps 575,679 Ps 568,303 US$ 370,590
======= ======= =======
MEMORANDUM ACCOUNTS Ps 794,767 Ps 753,239 US$ 491,186
======= ======= =======
OCCIDENTE Y CARIBE CELULAR S.A. - OCCEL
STATEMENTS OF CASH FLOW
Three Months Three Months
ended ended
March 31, March 31,
1998 1999
-------------- ------------------------------
Millions of Millions of Thousands of
Colombian Colombian U.S. dollars
pesos of pesos of (convenience
March 31, March 31, translation)
1999 1999
purchasing purchasing
power power
-------------- ------------------------------
OPERATING ACTIVITIES :
Net income (loss) Ps (10,018) Ps 5,079 US$ 3,312
Adjustments to
reconcile net income
(loss) to net cash
provided by
(used in) operating
activities:
Depreciation 3,374 4,353 2,839
Amortization of
intangible asset 4,343 4,408 2,874
Amortization of
deferred charges 8,845 8,593 5,603
Net monetary
correction (18,353) (19,629) (12,800)
Unrealized foreign
exchange loss 16,198 (2,259) (1,473)
Adjustment of fixed
assets 0 4,554 2,970
Accrued Interest
senior discount
notes 12,845 7,151 4,663
Acquisition of deferred
charges (7,315) (9,320) (6,078)
------- ------- -------
Changes in operating assets
and liabilities:
Accounts receivable net (2,227) (8,331) (5,433)
Inventories, net (11,552) 2,828 1,844
Prepaid expenses 223 457 298
Other assets (1,422) (2,247) (1,465)
Accounts payable 5,084 6,134 4,000
Income tax and other
taxes (1,995) 772 503
Payroll and vacation pay (107) (434) (283)
Accrued expenses (1,721) 484 316
Deferred liabilities 469 0 0
Other liabilities 103 1,985 1,294
------- ------- -------
Net cash provided by
(used in) operating
activities (3,226) 4,578 2,984
------- ------- -------
FINANCING ACTIVITIES:
Increase (decrease) in notes
payable to banks 6,113 (6,813) (4,443)
Payment of long-term debt (899) (535) (349)
------- ------- -------
Net cash provided by
financing activities 5,214 (7,348) (4,792)
------- ------- -------
INVESTING ACTIVITIES:
Sales of property, plant
and equipment 0 46 30
Acquisition of concession 0 (166) (108)
Acquisition of property,
plant and equipment (9,809) (1,084) (707)
Increase in advances to
contractors 431 506 330
------- ------- -------
Net cash used in
investing activities (9,378) (698) (455)
------- ------- -------
Effect of constant peso
restatement 788 (314) (205)
------- ------- -------
NET INCREASE (DECREASE)
IN CASH AND CASH
EQUIVALENTS Ps (6,602) Ps (3,782) US$ (2,467)
CASH AND CASH EQUIVALENTS:
At the beginning of
the period Ps 12,435 Ps 6,402 US$ 4,175
------- ------- -------
At the end of the period 5,833 2,620 1,708
======= ======= =======
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