Comcel and Occel Announce 3rd Quarter and 9-Month 2000 Results.Business Editors 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. & 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. , Columbia--(BUSINESS WIRE)--Oct. 25, 2000 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"), a provider of cellular services in the Western Region of Colombia, today reported financial results for the third quarter, ended September September: see month. 30, 2000. At the end of the third quarter, the two companies combined served more than 870,000 subscribers. 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: ): Third Quarter, 2000 At the end of the third quarter of 2000, COMCEL consolidated had 870,784 subscribers, an increase of 14% from its 766,205 subscribers at the end of the third quarter of 1999. Based on the latest 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. statistics from the Ministry of Communications (for the second quarter of 2000), COMCEL's consolidated market share was 56%. Revenue for the third quarter of 2000 was Ps102,455 million (US$46.3 million)1 compared to Ps113,711 million (US$51.4 million) in the third quarter of 1999. This represents a 10% decrease in revenue from the year-ago period, which is primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to a shift from postpaid post·paid adj. With the postage having been paid in advance. postpaid Adverb, adj with the postage prepaid Adj. 1. to prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. subscribers and lower 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. revenues, partially offset by an increase in prepaid Amigo cards. These revenues are also lower than those of the previous quarter, reflecting a further significant shift from postpaid in the third quarter. Gross margin of 62% was higher than the 60% reported a year ago, primarily due to the change in the method for amortizing the license from straight line to reverse sum of the years' digits (RSYD) and the change in the amortization of the handset The part of the telephone that contains the speaker and the microphone. On a desktop phone, the part you hold in your hand is the handset. On a cellphone, the entire phone is the handset. See multihandset cordless and headset. subsidy subsidy, financial assistance granted by a government or philanthropic foundation to a person or association for the purpose of promoting an enterprise considered beneficial to the public welfare. . Without this change, gross margin in the third quarter would have been 56%. 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 third quarter of 2000 was Ps20,460 million (US$9.2 million) compared to 1999 third quarter EBITDA of Ps40,049 million (US$18.1 million). This 49% decrease was primarily due to a decrease in revenues for the quarter, as well as a lesser increase in cash expenses. Consolidated EBITDA margin for the quarter was 20%, compared to 35% in the same quarter of 1999. In the third quarter of 2000, COMCEL recorded a foreign exchange (FX) loss of Ps18,299 million (US$8.3 million) compared to a loss of Ps258,494 million (US$116.9 million) a year earlier. This decrease is due to the decrease of the 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. rate as well as to an accounting change which defers part of the FX loss on COMCEL's and OCCEL's US Dollar debt over the average remaining life of the debt. The Colombian peso Noun 1. Colombian peso - the basic unit of money in Colombia; equal to 100 centavos peso centavo - a fractional monetary unit of several countries: El Salvador and Sao Tome and Principe and Brazil and Argentina and Bolivia and Colombia and Cuba and the devaluation was 3.4% in the third quarter of 2000 compared to 16.5% in the third quarter of 1999. Net loss for this year's third quarter was Ps83,278 million (US$37.6 million) compared to a net loss of Ps298,082 million (US$134.8 million) in the year-ago period. Without the partial deferral deferral - Waiting for quiet on the Ethernet. of the FX loss, the net loss for the third quarter of 2000 would have been Ps120,776 million (US$54.6 million). On September 30, 2000, 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 Ps1,761,194 million (US$796.2 million), compared to Ps1,661,277 million (US$751 million) on September 30, 1999. Consolidated accounts receivable 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 Ps160,260 million (US$72.5 million-148 days), compared to Ps203,771 million (US$92.1 million-165 days) on September 30, 1999. "I am especially pleased to communicate that 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 , Telmex/America Movil and SBC (1) (SBC Communications Inc., San Antonio, TX, www.sbc.com) A large, national telecommunications company that grew from a multitude of local and regional companies, including Southwestern Bell, Pacific Bell and Nevada Bell, into a single, unified brand by 2002. International have recently disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). further details of the agreement signed on September 25, 2000 and originally announced in June June: see month. 2000, on a joint venture in the telecom industry in South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. . BCI's stakes in Comcel and Occel will be an important contribution to this joint venture. Comcel's and Occel's management actions are aimed at adding value for all their shareholders, by maintaining their position as a leader in the telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. industry of Colombia, with particular strengths in the prepaid market, offering a broad range of innovative telecommunications services In telecommunication, the term telecommunications service has the following meanings: 1. Any service provided by a telecommunication provider. 2. . We expect Comcel's outlook will improve as the Colombian economy recovers and unemployment is reduced," said Peter Burrowes, President and Chief Executive Officer of COMCEL and OCCEL. COMCEL (CONSOLIDATED): Nine-Month Period Revenue for the nine-month period ended September 30, 2000 was Ps337,242 million (US$152.5 million) compared to Ps383,194 million (US$173.2 million) in the 1999 nine-month period. Gross margin of 67% was higher than the 58% reported a year ago, primarily due to the change in the method for amortizing the license. On the previous basis, the gross margin for the third quarter of 2000 would have been 54%. EBITDA for the first nine months of 2000 was Ps106,243 million (US$48.0 million), 9% lower than the Ps116,911 million (US$52.9 million) reported for the same period in 1999. EBITDA margin for the 2000 nine-month period was 32%, compared to 31% a year ago. In the first nine months of 2000, COMCEL recorded a FX loss of Ps44,651 million (US$20.2 million) compared to a loss of Ps429,049 million (US$194.0 million) in the 1999 period. This decrease is due to the decrease of the devaluation rate as well as the accounting change which defers part of the FX loss on Comcel's and Occel's US Dollar debt over the average remaining life of the debt. The devaluation of the peso in the first nine months of 2000 was 18.06% compared to a devaluation of 30.8% for the 1999's same period. Net loss for the first nine months of 2000 was Ps117,848 million (US$53.3 million) compared to a net loss of Ps480,446 million (US$217.2 million) in the year-ago period. Without the partial deferral referenced above, the FX loss would have been Ps 342,248 million (US$154.7 million). COMCEL (EASTERN REGION): Third Quarter, 2000 The number of subscribers at the end of the third quarter, ended September 30, 2000, numbered 572,814, compared to 518,402 subscribers in the year ago quarter, representing an increase of 10%. In addition, the 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. increased to 61 % from 22 % in the third quarter of 2000, mainly due to the elimination of inactive in·ac·tive adj. 1. Not active or tending to be active. 2. a. Not functioning or operating; out of use: inactive machinery. b. subscribers from the database. Based on the latest subscriber statistics from the Ministry of Communications (for the second quarter of 2000), COMCEL's market share in the Eastern region was 57%. Revenue for the third quarter of 2000 was Ps74,221 million (US$33.6 million), compared to Ps86,516 million (US$39.1 million) in the third quarter of 1999. This represents a 14% decrease in revenue from the year-ago period. The decrease was primarily associated with the shift from postpaid to prepaid subscribers, partially offset by an increase in sales of prepaid cards. Gross margin of 62% was higher than the 61% reported a year ago, primarily due to the change in the method for amortizing the license. On the previous basis, the gross margin for the third quarter of 2000 would have been 61%. EBITDA for the third quarter of 2000 was Ps14,240 million (US$6.4 million) compared to 1999 third quarter EBITDA of Ps33,082 million (US$15.0 million). This decrease was primarily due to the decrease in revenues as well as a lesser increase in cash expenses for the quarter. EBITDA margin for the quarter was 19%, compared to 38% a year ago. In the third quarter of 2000, COMCEL recorded an FX loss of Ps12,096 million (US$5.5 million) compared to a loss of Ps179,078 (US$81.0 million) in the third quarter of 1999, mainly due to the lower devaluation rate and the partial deferral of the FX loss on US Dollar debt. Net loss for the third quarter of 2000 was Ps82,309 million (US$37.2 million) compared to net loss of Ps298,417 million (US$134.9 million) in the year-ago period. In the absence of the FX loss deferral, the loss would have been Ps109,366 million (US$49.4 million). Voice Over Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the Services On December December: see month. 20, 1998, Comcel commenced offering its customers voice over Internet services through a value added Value Added The enhancement a company gives its product or service before offering the product to customers. Notes: This can either increase the products price or value. service operator, Rey Moreno S Moreno, city (1991 pop. 287,188), Buenos Aires prov., E Argentina. It is a residential and district administrative center in the Greater Buenos Aires area. The district was the scene of several major battles during the Argentine War of Independence and the .A. Immediately thereafter, complaints were filed by several long-distance operators In telephony, the long-distance operator is available to assist with making long-distance telephone calls, answering billing questions, making collect calls and other functions, including emergency assistance. in Colombia. As a result, the Superintendency Su`per`in`tend´en`cy n. 1. The act of superintending; superintendence. of Industry and Commerce ("SIC") initiated its own investigation to determine whether or not Comcel was engaging in unfair trade practices. Rey Moreno ceased offering the services on September 24, 1999. On July July: see month. 5, 2000, several long-distance operators submitted a claim to the SIC, estimating damages at US$54 million. On October October: see month. 11, 2000, the SIC rejected re·ject tr.v. re·ject·ed, re·ject·ing, re·jects 1. To refuse to accept, submit to, believe, or make use of. 2. To refuse to consider or grant; deny. 3. the claim as premature pre·ma·ture adj. 1. Occurring or developing before the usual or expected time. 2. Born after a gestation period of less than the normal time, especially, in human infants, after a period of less than 37 weeks. , indicating that the appropriate time to file any such claims is after the conclusion of its unfair trade practice investigation. In addition, Comcel's Colombian counsel believe that the damage allegations by the long distance operators will be subject to defenses on the merits on the merits adj. referring to a judgment, decision or ruling of a court based upon the facts presented in evidence and the law applied to that evidence. A judge decides a case "on the merits" when he/she bases the decision on the fundamental issues and considers and that substantially all of the claims lack a sufficient evidentiary ev·i·den·tia·ry adj. Law 1. Of evidence; evidential. 2. For the presentation or determination of evidence: an evidentiary hearing. Adj. 1. basis. Based on the advice of counsel, even if it were held to be liable liable adj. responsible or obligated. Thus, a person or entity may be liable for damages due to negligence, liable to pay a debt, liable to perform an act for which he/she/it contracted to do, or liable to punishment for commission of a crime. for damages, Comcel believes the amount would not be material. Financial Covenant covenant (kŭv`ənənt), agreement entered into voluntarily by two or more parties to do or refrain from doing certain acts. In the Bible and in theology the covenant is the agreement or engagement of God with man as revealed in the 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. Comcel was not able to achieve compliance with the financial covenant of Total Senior Secured Debt to EBITDA required by its Senior Secured Term Loan Agreements at the end of the third quarter of 2000. As a result, the lenders under the Loan Agreement have agreed to waive To intentionally or voluntarily relinquish a known right or engage in conduct warranting an inference that a right has been surrendered. For example, an individual is said to waive the right to bring a tort action when he or she renounces the remedy provided by law for such this covenant until October 31, 2000. Negotiations are underway with lenders to resolve this situation in a timely manner. COMCEL EASTERN REGION: Nine-Month Period Revenue for the nine-month period ended September 30, 2000 was Ps243,490 million (US$110.1 million) compared to Ps298,982 million (US$135.2 million) for last year's same period. Gross margin of 68% was higher than the 57% reported a year ago, primarily due to the change in the method for amortizing the license. On the previous basis, the gross margin for the third quarter of 2000 would have been 56%. EBITDA for the first nine months in 2000 was Ps76,036 million (US$34.4 million) compared to Ps100,893 million (US$45.6 million) for the same period a year ago. EBITDA margin for the 2000 nine-month period was 31%, compared to 34% in the first nine months of 1999. In the first nine months of 2000, COMCEL recorded a FX loss of Ps28,176 million (US$12.7 million) compared to a loss of Ps296,675 million (US$134.1 million) in the 1999 nine-month period. The reduction is mainly due to the partial deferral of the FX loss on US Dollar debt and a lower devaluation rate. Net loss for the first nine months of 2000 was Ps115,135 million (US$52.1 million) compared to a net loss of Ps480,388 million (US$217.2 million) in the same period for 1999. Without the FX loss deferral, the net loss for the first half of 2000 would have been Ps271,007 million (US$122.5 million). COMCEL WESTERN REGION (OCCEL): Third Quarter At the end of the third quarter 2000, OCCEL had 297,970 subscribers in the Western Region, an increase of 20% or 50,167 subscribers from its 247,803 subscribers in the year-ago period. The Company also reported an annualized churn rate of 34% for the third quarter of 2000, mainly due to the elimination of inactive subscribers from its database. Based on the latest subscriber statistics from the Ministry of Communications (for the second quarter of 2000), OCCEL had a 54% market share in the Western region. OCCEL's third quarter revenue was Ps35,493 million (US$16.0 million) compared to Ps41,559 million (US$18.8 million) in the third quarter of 1999. This represents a 15% decrease in revenue from the year-ago period, which is mainly due to the shift from postpaid to prepaid subscribers, partially offset by an increase in sales of prepaid Amigo cards. Gross margin for the third quarter of 56% was lower than the 57% reported a year ago, primarily due to the change in the method for amortizing the license. On the previous basis, the gross margin for the third quarter of 2000 would have been 43%. EBITDA in the third quarter was Ps6,220 million (US$2.8 million), compared to Ps6,632 million (US$3.0 million) recorded in the third quarter of 1999. EBITDA margin in the third quarter was 18%, compared to the 16% posted in the year-ago period. This decrease was primarily due to a decrease in revenues and an increase in cost of revenues, partially offset by a reduction of cash expenses. In the third quarter of 2000, OCCEL recorded a FX loss of Ps6,203 million (US$2.8 million) compared to a loss of Ps79,412 million (US$35.9 million) a year ago. The reduction is mainly due to the partial deferral of the foreign exchange loss on US Dollar debt and a lower devaluation rate. Net loss for the third quarter of 2000 was Ps27,725 million (US$12.5 million) compared to a net loss of Ps100,798 million (US$45.6 million) in the year-ago period. Without the FX loss deferral, the net loss would have been Ps38,167 million (US$17.3 million). COMCEL WESTERN REGION (OCCEL): Nine-Month Period Revenue for the nine-month period ended September 30, 2000, was Ps122,012 million (US$55.2 million) compared to Ps129,696 million (US$58.6 million) in the 1999 nine-month period. Gross margin of 59% was higher than the 50% reported a year ago, primarily due to the change in the method for amortizing the license. On the previous basis, the gross margin for the third quarter of 2000 would have been 47%. EBITDA for the first nine months in 2000 was Ps30,248 million (US$13.7 million), almost twice the Ps16,068 million (US$7.3 million) for the same period of 1999. EBITDA margin was 25% compared to 12% for the nine-month period of 1999, primarily due to a decrease in cost of revenues and cash expenses, slightly offset by a decrease in revenues. In the first nine-months of 2000, OCCEL recorded an FX loss of Ps16,475 million (US$7.4 million) compared to a loss of Ps132,374 million (US$59.8 million) in the 1999 nine-month period. Net loss for the first nine months of 2000 was Ps27,549 million (US$12.5 million) compared to a net loss of Ps166,630 million (US$75.3 million) in the year-ago period. Without the FX loss deferral, the net loss would have been Ps96,077 million (US$43.4million). "I would like to reiterate re·it·er·ate tr.v. re·it·er·at·ed, re·it·er·at·ing, re·it·er·ates To say or do again or repeatedly. See Synonyms at repeat. re·it that our brand, our products and our services remain strong and competitively well-positioned in both COMCEL and OCCEL. Regarding the performance of our Pre-paid Division, AMIGO, Yankelovich & Partners, a major market research firm, released a study made on prepaid cards in Colombia in October of this year. Results showed that Comcel has maintained its position as market leader with a 79% market share and an 82% top of mind. In addition, we continue innovating in new products and services. Colombia is the third country in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , after 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. and Brazil Brazil (brəzĭl`), Port. Brasil, officially Federative Republic of Brazil, republic (2005 est. pop. 186,113,000), 3,286,470 sq mi (8,511,965 sq km), E South America. , to launch WAP (1) (Wireless Access Point) See access point. (2) (Wireless Application Protocol) A standard for providing cellular phones, pagers and other handheld devices with secure access to e-mail and text-based Web pages. services, 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. Yankee Group (the Yankee Group, Boston, MA, www.yankeegroup.com) A major market research, analysis and consulting firm founded in 1970 by Howard Anderson. It provides general consulting and strategic planning in the computer and communications field. . During the month of August, Comcel became the first to offer WAP services in Colombia through its CDPD (Cellular Digital Packet Data) A low-speed, digital, wireless data network that is an enhancement to an existing analog cellular network. Based on IBM's CelluPlan II, CDPD provides a packet overlay onto the AMPS network and moves data at 19. network, which enables Comcel users to have access to mobile Internet Refers to gaining access to the Internet using a lightweight, handheld device. See Mobile IP, PDA, smartphone and mobile TV. through a WAP handset or PC. Strategic alliances for exclusivity on local content have been made with the leading media companies, airlines and financial institutions. These new services are not only a crucial factor for the continuity of any telecommunications company but also a leadership challenge that Comcel is anxious to continue undertaking. We intend to remain focused on reducing costs and increasing profitable growth," said Mr. Burrowes. Comunicacion Celular S.A., COMCEL provides technologically advanced digital cellular telecommunications services 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. 18.5 million people and including Santafe de Bogota, the region's capital. COMCEL's network covered approximately 81% of the population of the Eastern Region of Colombia as of September 30, 2000. COMCEL has been providing cellular services since July 1, 1994. COMCEL owns 70.8% of OCCEL. OCCEL is one of two providers of advanced digital cellular telecommunications services in the Western Region of Colombia. The Western Region has approximately 15.5 million people (36 percent of Colombia's population), including the economic centers of Medellin and Cali, with 3.2 million and 2.7 million residents respectively. OCCEL's network covered approximately 69% of the population of the Western Region of Colombia as of September 30, 2000. OCCEL has been providing cellular services since September 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 and relate primarily to general economic and political conditions in Colombia, currency fluctuations, competition, potential technology changes, the Colombian 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. environment and customer preferences and behavior. 1Pesos were translated at Ps2,211.94 per US Dollar, the representative market rate calculated by the Columibian Superintendency of Banking for September 30, 2000.
COMUNICACION CELULAR S.A. COMCEL CONSOLIDATED (1)
Selected Financial Data
(Unaudited, in millions and under local GAAP)
Three months ended September 30
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(Million) 2000 (1) 1999 (2)
--------------------- --------------------
Revenues Ps 102,455 US $46.3 Ps 113,711 US$ 51.4
Operating income (12,768) (5.8) (173) (0.1)
Net interest expense (62,757) (28.4) (63,506) (28.7)
Net Foreign exchange
gain (loss) (18,299) (8.3) (258,494) (116.9)
Net monetary correction 4,445 2.0 10,578 4.8
Other 6,101 2.8 13,513 6.1
Net earnings (loss) (83,278) (37.6) (298,082) (134.8)
EBITDA 20,460 9.2 40,049 18.1
EBITDA MARGIN 20% 35%
Year to Date September 30
-----------------------------------------
2000 (1) 1999(2)
-------------------- -------------------
Revenues Ps337,242 US$152.5 Ps383,194 US$173.2
Operating income 10,343 4.7 (4,022) (1.8)
Net interest expense (173,147) (78.3) (159,923) (72.3)
Net Foreign exchange
gain (loss) (44,651) (20.2) (429,049) (194.0)
Net monetary correction 108,688 49.1 104,632 47.3
Other (19,081) (8.6) 7,916 3.6
Net earnings (loss) (117,848) (53.3) (480,446) (217.2)
EBITDA 106,243 48.0 116,911 52.9
EBITDA MARGIN 32% 31%
Third Quarter ended September 30,
2000 1999
-----------------
Number of subscribers at end of period 870,784 766,205
Average monthly minutes of use per subscriber 104 66
Service revenue per avg.subs. (Ps)(4) 39,000 45,000
Penetration (Eastern / Western Region) 2.56% 2.29%
Annualized churn rate 52.1% 20.5%
(1) Figures are consolidated to reflect Comcel's 70.8% participation of Occel (67.7% fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ). (2) Colombian peso amounts for the periods ending September 30, 2000 and 1999 have been translated intoUS dollars solely for the convenience of the reader at the average US$/Colombian Peso exchange rate of 2,211.94 (3) Numbers have been restated into constant Colombian pesos as of September 30, 2000 in order to express all financial information in purchasing power Purchasing Power 1. The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you'd be able to purchase. 2. 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 September 30
----------------------------------------
(Million) 2000 (1) 1999 (2)
------------------- -------------------
Revenues Ps 74,221 US$ 33.6 Ps 86,516 US$ 39.1
Operating income (6,627) (3.0) 9,584 4.3
Net interest expense (41,293) (18.7) (44,279) (20.0)
Net Foreign exchange
gain (loss) (12,096) (5.5) (179,078) (81.0)
Net monetary correction 3,127 1.4 7,433 3.4
Other (25,420) (11.4) (92,077) (41.6)
Net earnings (loss) (82,309) (37.2) (298,417) (134.9)
EBITDA 14,240 6.4 33,082 15.0
EBITDA MARGIN 19% 38%
Year to Date September 30
----------------------------------------
2000 (1) 1999(2)
------------------- ------------------
Revenues Ps243,490 US$110.1 Ps298,982 US$135.2
Operating income 16,941 7.7 32,088 14.5
Net interest expense (118,300) (53.5) (114,232) (51.6)
Net Foreign exchange
gain (loss) (28,176) (12.7) (296,675) (134.1)
Net monetary correction 76,102 34.4 71,240 32.2
Other (61,702) (28.0) (172,809) (78.2)
Net earnings (loss) (115,135) (52.1) (480,388) (217.2)
76,036 34.4 100,893 45.6
31% 34%
Third Quarter ended September 30,
2000 1999
------- -------
Number of subscribers at end of period 572,814 518,402
Average monthly minutes of use per subscriber 111 60
Service revenue per avg.subs. (Ps)(3) 41,000 49,000
Penetration (Eastern Region) 3.09% 2.85%
Annualized churn rate 61.3% 21.8%
(1) Colombian peso amounts for the year periods ending September 30, 2000 and 1999 have been translated into US dollars solely for the convenience of the reader at the average US$/Colombian Peso exchange rate of 2,211.94 (2) Numbers have been restated into constant Colombian pesos as of September 30, 2000 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 and Management Fees divided by the average number of subscribers in the period, stated in historical pesos
OCCEL - Western Region
Selected Financial Data
(Unaudited, in millions and under local GAAP)
Three months ended September 30
------------------------------------
(Million) 2000 (1) 1999 (2)
----------------- ----------------
Revenues Ps35,493 US$16.0 Ps41,559 US$18.8
Operating income 197 0.1 (3,008) (1.4)
Net interest expense (21,464) (9.7) (19,227) (8.7)
Net Foreign exchange
gain (loss) (6,203) (2.8) (79,412) (35.9)
Net monetary correction 1,532 0.7 3,826 1.7
Other (1,787) (0.8) (2,977) (1.3)
Net earnings (loss) (27,725) (12.5) (100,798) (45.6)
EBITDA 6,220 2.8 6,632 3.0
EBITDA MARGIN 18% 16%
Year to Date September 30
-------------------------------------
2000 (1) 1999(2)
------------------ -----------------
Revenues Ps122,012 US$55.2 Ps129,696 US$58.6
Operating income 12,394 5.6 (14,489) (6.6)
Net interest expense (54,847) (24.8) (45,691) (20.7)
Net Foreign exchange
gain (loss) (16,475) (7.4) (132,374) (59.8)
Net monetary correction 36,546 16.5 34,984 15.8
Other (5,167) (2.4) (9,060) (4.0)
Net earnings (loss) (27,549) (12.5) (166,630) (75.3)
EBITDA 30,248 13.7 16,068 7.3
EBITDA MARGIN 25% 12%
Third Quarter ended September 30,
2000 1999
-----------------
Number of subscribers at end of period 297,970 247,803
Average monthly minutes of use per subscriber 90 78
Service revenue per avg.subs. (Ps)(3) 41,000 50,000
Penetration (Western Region) 1.92% 1.62%
Annualized churn rate 34.1% 17.7%
(1) Colombian peso amounts for the periods ending September 30, 2000 and 1998 have been translated into US dollars solely for the convenience of the reader at the average US$/Colombian Peso exchange rate of 2,211.94 (2) Numbers have been restated into constant Colombian pesos as of September 30, 2000 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 BALANCE SHEETS
December September
31,1999 30, 2000
(Unaudited)
----------- -------------------------
Millions of Millions of Thousands of
Colombian Colombian US dollars
pesos of pesos of (convenience
September September translation)
30, 2000 30, 2000
purchasing purchasing
power power
----------- -------------------------
ASSETS
CURRENT ASSETS:
Cash and
cash equivalents Ps 1,499 Ps 2,839 US$ 1,284
Time deposits 9,742 - -
Accounts receivable, net 173,583 160,260 72,452
Inventories 24,041 26,110 11,804
Prepaid expenses 20,433 12,977 5,867
---------- -------- ---------
Total current assets 229,298 202,186 91,407
LONG-TERM ACCOUNTS
RECEIVABLE 1,007 1,096 495
PROPERTY, PLANT AND
EQUIPMENT, NET 519,277 510,568 230,824
GOODWILL, NET 529,813 506,085 228,797
INTANGIBLE ASSETS, NET 900,325 895,274 404,746
DEFERRED CHARGES, NET 128,924 335,084 151,488
OTHER ASSETS 3,898 2,821 1,275
VALUATION OF ASSETS 130,698 121,377 54,874
------------ ------------ -------------
TOTAL ASSETS Ps 2,443,240 Ps 2,574,491 US$ 1,163,906
============ ============ =============
MEMORANDUM ACCOUNTS Ps 4,380,783 Ps 2,856,153 US$ 1,169,179
============ ============ =============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes payable to
banks Ps 104,846 Ps 113,633 US$ 51,372
Long-term debt due
within one year 39,367 291,670 131,862
Accounts payable 160,143 125,245 56,622
Income tax and
other taxes 14,388 9,417 4,257
Payroll and
vacation pay 2,665 73 33
Accrued expenses 56,432 63,109 28,531
Other liabilities 15,174 13,127 5,935
----------- --------- ------------
Total current
liabilities 393,015 616,274 278,612
LONG-TERM DEBT 1,524,599 1,469,524 664,360
MINORITY INTEREST 4,086 2,049 926
SHAREHOLDERS' EQUITY 521,540 486,644 220,008
----------- --------- ------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY Ps 2,443,240 Ps 2,574,491 US$ 1,163,906
============ ============ =============
MEMORANDUM ACCOUNTS Ps 4,380,783 Ps 2,586,153 US$ 1,169,179
============ ============ =============
COMUNICACION CELULAR S.A. COMCEL
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three months Three months ended
ended September 30, 2000
September
30, 1999
----------- ----------- -----------
Millions of Millions of Thousand of
Colombian Colombian U.S. Dollars
pesos of pesos of (convenience
September September translation)
30, 2000 30, 2000
purchasing purchasing
power power
----------- ----------- ------------
REVENUES:
Service Revenues Ps 107,921 Ps 96,942 US$ 43,826
Equipment Sales 5,790 5,513 2,492
---------- --------- ----------
Total Revenues 113,711 102,455 46,318
---------- --------- ----------
COST OF REVENUES:
Cost of
telecommunications
services 21,381 28,440 12,858
Amortization of
concession 14,147 2,834 1,281
Cost of equipment sold 10,462 8,169 3,692
------ ------ ------
Total cost of Revenues 45,990 39,443 17,831
------ ------ ------
GROSS PROFIT 67,721 63,012 28,487
------ ------ ------
OPERATING EXPENSES:
Selling 10,544 14,995 6,779
Administrative 24,699 25,590 11,569
Technology 7,717 9,244 4,179
Amortization of goodwill 9,594 9,715 4,392
Depreciation 15,340 16,236 7,340
------ -------- -------
Total Operating Expenses 67,894 75,780 34,259
------ -------- -------
OPERATING INCOME (LOSS) (173) (12,768) (5,772)
------ -------- -------
OTHER INCOME (EXPENSE) :
Interest, net (63,506) (62,757) (28,372)
Financing expenses, net(11,629) (4,204) (1,901)
Foreign exchange gain
(loss), net (258,494) (18,29) (8,273)
Other, net (10,462) 4,110 1,859
--------- -------- --------
Total Other Expenses (344,091) (81,150) (36,687)
--------- -------- --------
NET MONETARY CORRECTION 10,578 4,445 2,009
--------- -------- --------
INCOME (LOSS)
BEFORE INCOME TAX (333,686) (89,473) (40,450)
INCOME TAX (3,108) (1,911) (864)
--------- -------- --------
MINORITY INTEREST 38,712 8,106 3,665
--------- -------- --------
NET INCOME (LOSS)
FOR THE PERIOD Ps (298,082) Ps (83,278) US$ (37,649)
------------ ----------- ------------
NET INCOME (LOSS)
PER SHARE Ps (1.54) Ps (0.35)
------------ -----------
WEIGHTED AVG. NUMBER
OF SHARES OUTSTANDING
(in millions) 193,818 238,409
------------ -----------
COMUNICACION CELULAR S.A. COMCEL
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Nine months Nine months ended
ended September 30, 2000
September
30, 1999
----------- ----------- ------------
Millions of Millions of Thousand of
Colombian Colombian U.S. Dollars
pesos of pesos of (convenience
September September translation)
30, 2000 30, 2000
purchasing purchasing
power power
----------- ----------- ------------
REVENUES:
Service Revenues Ps 368,003 Ps 318,418 US$ 143,954
Equipment Sales 15,191 18,824 8,510
----------- ---------- -----------
Total Revenues 383,194 337,242 152,464
----------- ---------- -----------
COST OF REVENUES:
Cost of
telecommunications
services 75,240 73,628 33,287
Amortization of
concession 43,024 7,748 3,503
Cost of equipment sold 44,288 28,765 13,003
------- ------- -------
Total cost of Revenues 162,552 110,141 49,793
------- ------- -------
GROSS PROFIT 220,642 227,101 102,671
------- ------- -------
OPERATING EXPENSES:
Selling 47,029 42,083 19,025
Administrative 82,285 72,930 32,971
Technology 22,235 26,977 12,196
Amortization of
goodwill 27,863 27,451 12,411
Depreciation 45,252 47,317 21,392
Total Operating
------- ------- ------
Expenses 224,664 216,758 97,995
------- ------- ------
OPERATING INCOME (LOSS) (4,022) 10,343 4,676
------- ------- ------
OTHER INCOME (EXPENSE) :
Interest, net (159,923) (173,147) (78,278)
Financing expenses,
net (26,402) (17,492) (7,908)
Foreign exchange
gain (loss), net (429,049) (44,651) (20,186)
Other, net (15,839) (1,932) (874)
--------- --------- ---------
Total Other Expenses (631,213) (237,222) (107,246)
--------- --------- ---------
NET MONETARY CORRECTION 104,632 108,688 49,137
INCOME (LOSS) BEFORE
INCOME TAX (530,603) (118,191) (53,433)
INCOME TAX (9,357) (7,712) (3,487)
--------- --------- --------
MINORITY INTEREST 59,514 8,055 3,642
--------- --------- ---------
NET INCOME (LOSS)
FOR THE
PERIOD Ps (480,446) Ps (117,848) US$ (53,278)
------------ ------------ ------------
NET INCOME
(LOSS) PER SHARE Ps (2.54) Ps (0.51)
------------ -----------
WEIGHTED AVG. NUMBER
OF SHARES
OUTSTANDING
(in millions) 189,089 233,170
------------ -----------
COMUNICACION CELULAR S.A. COMCEL
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine months Nine months ended
ended September 30, 2000
September
30, 1999
----------- ------------------------
Millions of Millions of Thousands of
Colombian Colombian US dollars
pesos of pesos of (convenience
Sept. 30, Sept 30, translation)
2000 2000
purchasing purchasing
power power
----------- ------------------------
OPERATING ACTIVITIES:
Net loss Ps (480,446) Ps(117,848) US$(53,278)
Adjustments to
reconcile net income
(loss) to net cash
provided by
(used in) operating
activities:
Depreciation 45,252 47,317 21,392
Amortization of
concession 43,031 7,748 3,503
Adjustment of
amortization on
concession
recalculation - (2,595) (1,173)
Amortization of deferred
charges 59,619 59,506 26,902
Amortization of goods
held by third parties 1,099 1,806 817
Amortization of goodwill 27,863 27,451 12,410
Net monetary correction (104,632) (108,688) (49,137)
Adjustment for equity
method - (3,722) (1,683)
Unrealized foreign
exchange loss 403,971 14,353 6,489
Valuation allowance and
adjustments of fixed assets 3,013 1,262 571
Minoritary interest (59,513) (8,055) (3,642)
Accrued interest on bonds 77,132 95,064 42,978
Addition of deferred
charges (83,888) (31,648) (14,308)
Changes in operating assets and liabilities:
Accounts receivable, net 1,435 (8,013) (3,623)
Inventories 10,931 (3,785) (1,711)
Prepaid expenses and
other assets 238 1,862 842
Accounts payable 24,631 (30,586) (13,828)
Income tax and other taxes 1,177 (3,946) (1,784)
Payroll and vacation pay (1,976) (2,402) (1,086)
Accrued expenses 33,858 15,199 6,871
Other liabilities 336 318 144
Net cash provided by --------- ----------- -----------
(used in) operating
activities 3,131 (49,402) (22,334)
--------- ----------- -----------
FINANCING ACTIVITIES:
Increase (decrease) in
short-term debt net
of repayments (1,902) 16,264 7,353
Payment of long-term debt (159,577) (119,182) (53,881)
Issuance of long-term debt 9,256 78,576 35,523
Issuance of common stock 160,477 88,499 40,010
--------- ----------- -----------
Net cash provided by
financing activities 8,254 64,157 29,005
INVESTING ACTIVITIES:
Acquisitioln of property,
plant and equipment (33,985) (22,936) (10,369)
Acquisition of concession (180) - -
Decrease (increase) in
advances to contractors 5,833 (805) (364)
Decrease in time deposit
and other investment 7,625 10,433 4,717
--------- ----------- -----------
Net cash (used in)
investing activities (20,707) (13,308) (6,016)
--------- ----------- -----------
Effect of constant peso
restatement (1,272) (107) (49)
--------- ----------- -----------
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS (10,594) 1,340 606
CASH AD CASH EQUIVALENTS:
At the beginning of the
period 16,235 1,499 678
--------- ----------- -----------
At the end of the period Ps 5,641 Ps 2,839 US$ 1,284
========= =========== ===========
COMUNICACION CELULAR S.A.
NON CONSOLIDATED - BALANCE SHEETS
December 31,1999 September 30, 2000
(Unaudited)
---------------- ---------------------------
Millions of Millions of Thousands of
Colombian Columbian U.S. dollars
pesos of pesos of (convenience
September 30, September 30, translation)
2000 2000
purchasing purchasing
power power
------------- ---------------------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents Ps 279 Ps 1,400 US$ 633
Accounts receivable, net 119,545 114,685 51,848
Inventories 17,272 17,437 7,883
13,013 8,709 3,937
------- ------- -------
Total current assets
150,109 142,231 64,301
INVESTMENT IN SUBSIDIARY 396,530 361,439 163,404
LONG-TERM ACCOUNTS
RECEIVABLE 527 680 307
PROPERTY, PLANT AND
EQUIPMENT, NET 354,932 348,458 157,535
GOODWILL, NET 154,053 161,225 72,889
INTANGIBLE ASSETS, NET 595,102 591,802 267,549
DEFERRED CHARGES, NET 120,533 256,438 115,934
OTHER ASSETS 2,283 2,323 1,050
VALUATION OF ASSETS 66,358 61,625 27,860
------------ ------------ -----------
TOTAL ASSETS Ps 1,840,427 Ps 1,926,221 US$ 870,829
------------ ------------ -----------
MEMORANDUM ACCOUNTS Ps 3,496,257 Ps 1,576,928 US$ 712,916
------------ ------------ -----------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes payable to bank Ps 60,600 Ps 73,197 US$ 33,092
Long-term debt due
within one year 14,967 183,713 83,055
Accounts payable 117,382 79,326 35,863
Income tax and other taxes 8,934 3,501 1,583
Payroll and vacation pay 1,957 62 28
Accrued expenses 43,732 51,539 23,300
Other liabilities 9,396 7,867 3,557
------- ---------- --------
Total current liabilities 256,968 399,205 180,478
LONG-TERM DEBT 1,051,156 1,027,663 464,598
SHAREHOLDERS' EQUITY 532,303 499,353 225,753
TOTAL LIABILITIES AND
------------ ------------ -----------
SHAREHOLDERS' EQUITY Ps 1,840,427 Ps 1,926,221 US$ 870,829
------------ ------------ -----------
MEMORANDUM ACCOUNTS Ps 3,496,257 Ps 1,576,928 US$ 712,916
------------ ------------ -----------
COMMUNICATION CELLULAR S.A.
NON CONSOLIDATED - STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended Three months ended
September 30, 1999 September 30, 2000
------------------ -------------------------------
Millions of Millions of Thousand of
Colombian pesos of Colombian pesos of U.S. Dollars
September 30, 2000 September 30, 2000 (convenience
purchasing power purchasing power translation)
------------------ -------------------------------
REVENUES:
Service Revenues Ps 74,336 Ps 67,460 US$ 30,498
Equipment Sales 3,310 3,755 1,697
Other 8,870 3,006 1,359
--------- --------- ----------
Total Revenues 86,516 74,221 33,554
--------- --------- ----------
COST OF REVENUES:
Cost of telecommunications
services 17,837 20,710 9,363
Amortization of
concession 9,417 2,045 924
Cost of equipment sold 6,569 5,271 2,383
------ ------ ------
Total Cost of Revenues 33,823 28,026 12,670
------ ------ ------
GROSS PROFIT 52,693 46,195 20,884
------ ------ ------
OPERATING EXPENSES:
Selling 6,793 10,665 4,822
Administrative 18,861 20,247 9,153
Tecnology 4,353 7,641 3,454
Amortization of
goodwill 2,505 2,964 1,340
Depreciation 10,597 11,305 5,111
------ ------- -------
Total Operating Expenses 43,109 52,822 23,880
------ ------- -------
OPERATING INCOME (LOSS) 9,584 (6,627) (2,996)
------ ------- -------
OTHER INCOME (EXPENSES):
Interest, net (44,279) (41,293) (18,668)
Financing expenses,
net (10,919) (3,429) (1,550)
Foreign exchange
loss, net (179,078) (12,096) (5,469)
Other, net (78,335) (20,080) (9,078)
--------- -------- --------
Total Other Expenses (312,611) (76,898) (34,765)
--------- -------- --------
NET MONETARY CORRECTION 7,433 3,127 1,414
--------- -------- --------
INCOME (LOSS) BEFORE
INCOME TAX (295,594) (80,398) (36,347)
INCOME TAX (2,823) (1,911) (864)
--------- -------- --------
NET INCOME (LOSS)
FOR THE PERIOD Ps (298,417) Ps (82,309) US$ (37,211)
------------ ----------- ------------
NET INCOME (LOSS)
PER SHARE Ps (1.54) Ps (0.35)
------------ ----------- ------------
WEIGHTED AVG. NUMBER
OF SHARES
OUTSTANDING
(in millions) 193,818 238,409
------------ ----------- ------------
Nine months ended Nine months ended
September 30, 1999 September 30, 2000
------------------ -----------------------------
Millions of Millions of Thousand of
Colombian pesos of Colombian pesos U.S. Dollars
September 30, 2000 September 30, (convenience
purchasing power purchasing power translation)
------------------- -----------------------------
REVENUES:
Service Revenues Ps 256,985 Ps 221,416 US$ 100,100
Equipment Sales 25,783 12,136 5,487
Other 16,214 9,938 4,493
---------- -----------------------
Total Revenues 298,982 243,490 110,080
---------- -----------------------
COST OF REVENUES:
Cost of telecommunications
services 59,972 56,418 25,506
Amortization of
concession 28,444 5,172 2,338
Cost of equipment sold 39,056 16,880 7,632
------- --------------------
Total Cost of Revenues 127,472 78,470 35,476
------- --------------------
GROSS PROFIT 171,510 165,020 74,604
------- --------------------
OPERATING EXPENSES:
Selling 27,411 29,252 13,225
Administrative 62,289 56,176 25,397
Tecnology 12,201 21,311 9,634
Amortization of
goodwill 6,290 8,500 3,843
Depreciation 31,231 32,840 14,846
------- ------- ------
Total Operating
Expenses 139,422 148,079 66,945
------- ------- ------
OPERATING INCOME (LOSS) 32,088 16,941 7,659
------- ------- ------
OTHER INCOME (EXPENSES):
Interest, net (114,232) (118,300) (53,482)
Financing expenses,
net (23,831) (14,120) (6,384)
Foreign exchange
loss, net (296,675) (28,176) (12,738)
Other, net (140,343) (39,870) (18,025)
--------- ----------------------
Total Other Expenses (575,081) (200,466) (90,629)
--------- ----------------------
NET MONETARY CORRECTION 71,240 76,102 34,405
--------- ----------------------
INCOME (LOSS) BEFORE
INCOME TAX (471,753) (107,423) (48,565)
INCOME TAX (8,635) (7,712) (3,487)
NET INCOME (LOSS)
FOR THE PERIOD Ps (480,388) Ps (115,135) US$ (52,052)
NET INCOME (LOSS)
PER SHARE Ps (2.54) Ps(0.49)
WEIGHTED AVG. NUMBER
OF SHARES
OUTSTANDING
(in millions) 189,089 233,170
COMUNICACION CELULAR S.A.
NON CONSOLIDATED - STATEMENTS OF CASH FLOWS
(Unaudited)
Nine months ended Nine months ended
September 30, 1999 September 30, 2000
------------------ -------------------------------
Millions of Millions of Thousands of
Colombian pesos of Colombian pesos of U.S. dollars
September 30, 2000 September 30, 2000 (convenience
purchasing power purchasing power translation)
------------------ -------------------------------
OPERATING ACTIVITIES:
Net loss Ps (480,388) Ps (115,135) US$ (52,052)
Adjustments to
reconcile net
income (loss)
to net cash
provided by
(used in) operating
activities:
Depreciation 31,231 32,840 14,846
Amortization of
concession 28,444 5,172 2,338
Adjustment of
amortization on
concession recalculation - (1,762) (797)
Amortization of
deferred charges 35,034 43,620 19,720
Amortization of goods
held by third parties 161 440 199
Amortization of
goodwill 6,290 8,500 3,843
Proportional loss in
investment 130,279 40,739 18,418
Adjustment for
equity method - (3,722) (1,683)
Net monetary
correction (71,240) (76,102) (34,405)
Unrealizaed foreign
exchange gain
(loss) 284,944 10,477 4,737
Adjustments of fixed
assets (386) (1,124) (508)
Accrued interest on
bonds 48,505 59,327 26,821
Addition of deferred
charges (61,018) (19,823) (8,962)
Changes in operating assets and liabilities:
Accounts receivable,
net 30,404 (2,931) (1,325)
Inventories, net 6,118 (1,397) (632)
Prepaid expenses and
other assets (336) 2,138 967
Accounts payable 32,035 (32,353) (14,626)
Income tax and other
taxes 1,080 (4,797) (2,169)
Payroll and vacation
pay (1,301) (1,755) (793)
Accrued expenses 31,129 10,927 4,940
Other liabilities (5,353) (859) (388)
------- -------- --------
Net cash provided by
(used in) operating
activities 45,632 (47,580) (21,511)
------- -------- --------
FINANCING ACTIVITIES:
Increase (decrease) in
short-term debt net of
repayments 6,546 16,918 7,648
Payment of
long-term debt (154,233) (16,691) (7,546)
Issuance of
long-term debt 160,477 2,468 1,116
Issuance of common
stock 5,122 80,141 36,231
------ ------ ------
Net cash provided by
financing activities 17,912 82,836 37,449
------ ------ ------
INVESTING ACTIVITIES:
Acquisition of
goodwill - Occel - (15,268) (6,902)
Acquisition of
property, plant and
equipment (25,657) (17,417) (7,874)
Decrease (Increase)
in advances to
contractors 2,181 (926) (419)
Increase in
investment (44,729) (502) (227)
-------- -------- --------
Net cash used in
investing
activities (68,205) (34,113) (15,422)
-------- -------- --------
Effect of constant
peso restatement (708) (22) (9)
-------- -------- --------
NET INCREASE
(DECREASE) IN CASH
AND CASH EQUIVALENTS (5,369) 1,121 507
CASH AND CASH EQUIVALENTS:
At the beginning of
the period 9,046 279 126
-------- -------- --------
At the end of the
period Ps 3,677 Ps 1,400 US$ 633
-------- -------- --------
OCCIDENTE Y CARIBE CELULAR S.A. OCCEL
BALANCE SHEETS
Year ended Nine months ended
December 31,1999 September 30, 2000 (Unaudited)
Millions of Millions of Thousands of
Colombian pesos of Colombian pesos of U.S. dollars
September 30, 2000 September 30, 2000 (convenience
purchasing power purchasing power translation)
------------------ -------------------------------
ASSETS
CURRENT ASSETS:
Cash and cash
equivalents Ps 1,220 Ps 1,438 US$ 650
Time deposits 9,742 - -
Accounts receivable, net 74,521 69,435 31,391
Inventories, net 6,775 8,680 3,924
Prepaid expenses 7,420 4,268 1,930
------ ------- -------
Total current assets 99,678 83,821 37,895
LONG-TERM ACCOUNTS
RECEIVABLE 481 416 188
PROPERTY, PLANT AND
EQUIPMENT, NET 164,346 163,130 73,750
INTANGIBLE ASSETS, NET 305,223 303,472 137,197
DEFERRED CHARGES, NET 8,391 78,646 35,555
OTHER ASSETS 1,614 498 225
VALUATION OF ASSETS 64,341 59,752 27,013
---------- ------------ -----------
TOTAL ASSETS Ps 644,074 Ps 689,735 US$ 311,823
---------- ------------ -----------
MEMORANDUM ACCOUNTS Ps 844,527 Ps 1,009,225 US$ 456,262
---------- ------------ -----------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes payable to
banks Ps 44,246 Ps 40,436 US$ 18,281
Long-term debt due
within one year 24,400 107,957 48,806
Accounts payable 54,253 58,515 26,454
Income tax and other
taxes 5,454 5,916 2,674
Payroll and vacation pay 708 11 5
Accrued expenses 21,448 21,942 9,920
Other liabilities 5,981 6,089 2,753
------ ------- -------
Total current
liabilities 156,490 240,866 108,893
LONG-TERM DEBT 473,443 441,861 199,762
SHAREHOLDERS' EQUITY 14,141 7,008 3,168
---------- ---------- -----------
TOTAL LIABILITIES AND
SHAREHOLDERS'
EQUITY Ps 644,074 Ps 689,735 US$ 311,823
---------- ---------- -----------
MEMORANDUM ACCOUNTS Ps 844,527 Ps 1,009,225 US$ 456,262
---------- ------------ -----------
OCCIDENTE Y CARIBE CELULAR S.A. OCCEL
STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended Three months ended
September 30, 1999 September 30, 2000
------------------ -------------------------------
Millions of Millions of Thousand of
Colombian pesos of Colombian pesos of U.S. Dollars
September 30, 2000 September 30, 2000 (convenience
purchasing power purchasing power translation)
------------------ -------------------------------
REVENUES:
Service Revenues Ps 38,847 Ps 33,734 US$ 15,251
Equipment Sales 2,712 1,759 795
--------- --------- ----------
Total Revenues 41,559 35,493 16,046
--------- --------- ----------
COST OF REVENUES:
Cost of
telecommunications
services 8,853 11,984 5,418
Amortization of
concession 4,722 789 357
Cost of equipment sold 4,428 2,899 1,310
------ -------------------
Total Cost of Revenues 18,003 15,672 7,085
------ -------------------
GROSS PROFIT 23,556 19,821 8,961
------ -------------------
OPERATING EXPENSES:
Selling 3,751 4,330 1,958
Administrative 14,707 8,760 3,960
Technology 3,364 1,603 725
Depreciation 4,742 4,931 2,229
------ ------ -----
Total Operating
Expenses 26,564 19,624 8,872
------- ------ -----
OPERATING INCOME (LOSS) (3,008) 197 89
------- ------ -----
OTHER INCOME (EXPENSES) :
Interest, net (19,227) (21,464) (9,704)
Financing expenses, net (710) (775) (351)
Foreign exchange
gain (loss), net (79,412) (6,203) (2,804)
Other, net (1,982) (1,012) (457)
--------- -------- --------
Total Other Expenses (101,331) (29,454) (13,316)
--------- -------- --------
NET MONETARY CORRECTION 3,826 1,532 693
--------- -------- --------
INCOME (LOSS) BEFORE
INCOME TAX (100,513) (27,725) (12,534)
INCOME TAX (285) 0 0
--------- -------- --------
NET INCOME (LOSS)
FOR THE PERIOD Ps (100,798) Ps (27,725) US$ (12,534)
------------ ----------- ------------
NET INCOME (LOSS)
PER SHARE Ps (1,190.06) Ps (288.80)
------------- -----------
WEIGHTED AVG.
NUMBER OF SHARES
OUTSTANDING
(in millions) 84.7 96.0
------------- -----------
Nine months ended Nine months ended
September 30, 1999 September 30, 2000
------------------ -------------------------------
Millions of Millions of Thousand of
Colombian pesos of Colombian pesos of U.S. Dollars
September 30, 2000 September 30, 2000 (convenience
purchasing power purchasing power translation)
------------------ -------------------------------
REVENUES:
Service Revenues Ps 123,046 Ps 115,324 US$ 52,137
Equipment Sales 6,650 6,688 3,024
---------- ---------- ----------
Total Revenues 129,696 122,012 55,161
---------- ---------- ----------
COST OF REVENUES:
Cost of
telecommunications
services 27,247 35,532 16,064
Amortization of
concession 14,580 2,576 1,165
Cost of equipment sold 22,474 11,886 5,373
------ ------ ------
Total Cost of Revenues 64,301 49,994 22,602
------ ------ ------
GROSS PROFIT 65,395 72,018 32,559
------ ------ ------
OPERATING EXPENSES:
Selling 19,618 12,831 5,801
Administrative 36,211 26,650 12,048
Technology 10,034 5,666 2,562
Depreciation 14,021 14,477 6,545
------ ------ ------
Total Operating Expenses 79,884 59,624 26,956
------ ------ ------
OPERATING INCOME
(LOSS) (14,489) 12,394 5,603
-------- ------ -----
OTHER INCOME (EXPENSES) :
Interest, net (45,691) (54,847) (24,796)
Financing expenses,
net (2,571) (3,372) (1,524)
Foreign exchange
gain (loss), net (132,374) (16,475) (7,448)
Other, net (5,767) (1,795) (812)
--------- -------- --------
Total Other Expenses (186,403) (76,489) (34,580)
--------- -------- --------
NET MONETARY CORRECTION 34,984 36,546 16,522
--------- -------- --------
INCOME (LOSS) BEFORE
INCOME TAX (165,908) (27,549) (12,455)
INCOME TAX (722) 0 0
------------ ------------------------
NET INCOME (LOSS)
FOR THE PERIOD Ps (166,630) Ps (27,549) US$ (12,455)
------------- ------------------------
NET INCOME (LOSS)
PER SHARE Ps (1,997.96) Ps (291.83)
------------- -----------
WEIGHTED AVG.
NUMBER OF SHARES
OUTSTANDING
(in millions) 83.4 94.4
------------- -----------
OCCIDENTE Y CARIBE CELULAR S.A. OCCEL
STATEMENTS OF CASH FLOWS
(Unaudited)
Nine months ended Nine months ended
September 30, 1999 September 30, 2000
------------------ -------------------------------
Millions of Millions of Thousands of
Colombian pesos of Colombian pesos of U.S. dollars
September 30, 2000 September 30, 2000 (convenience
purchasing power purchasing power translation)
------------------ -------------------------------
OPERATING ACTIVITIES:
Net loss Ps (166,630) Ps (27,549) US$ (12,455)
Adjustments to
reconcile net
income (loss) to
net cash provided by
(used in) operating
activities:
Depreciation 14,021 14,477 6,545
Amortization of
concession 14,580 2,576 1,165
Adjustment of
amortization on
concession recalculation - (834) (377)
Amortization of
deferred charges 24,593 15,887 7,182
Amortization of goods
held by third parties 939 1,367 618
Net monetary
correction (34,984) (36,546) (16,522)
Unrealized foreign
exchange loss 119,027 3,876 1,752
Adjustments of fixed
assets 3,012 1,366 618
Accrued interest
senior discount notes 28,626 35,737 16,156
Addition of deferred
charges (22,869) (11,826) (5,346)
Changes in operating assets and liabilities:
Accounts receivable,
net (18,857) (320) (145)
Inventories, net 4,765 (2,388) (1,079)
Prepaid expenses and
other assets 568 (276) (125)
Accounts payable (19,010) (132) (60)
Income tax and other
taxes 97 851 385
Payroll and vacation
pay (673) (648) (293)
Accrued expenses 4,221 2,024 915
Other liabilities 5,691 536 242
Net cash provided by
(used in) operating
activities (42,883) (1,822) (824)
-------- ------- -----
FINANCING ACTIVITIES:
Decrease in short-term
debt net of
repayments (8,447) (654) (296)
Payment of long-term
debt (5,346) (102,491) (46,335)
Issuance of long-term
debt 4,134 76,108 34,408
Issuance of common
stock 44,669 23,971 10,837
------ ------- -------
Net cash provided by
(used in) financing
activities 35,010 (3,066) (1,386)
------ ------- -------
INVESTING ACTIVITIES:
Decrease in time
deposit and other
investment 7,686 10,590 4,788
Acquisition of
concession (180) - -
Acquisition of property,
plant and equipment (7,944) (5,519) (2,495)
Decrease (increase) in
advances to contractors 3,652 122 55
------- ------- -------
Net cash used in
investing activities (4,472) (5,397) (2,440)
------- ------- -------
Effect of constant
peso restatement (563) (87) (39)
------- ------- -------
NET INCREASE (DECREASE)
IN CASH AND CASH
EQUIVALENTS (5,222) 218 99
CASH AND CASH EQUIVALENTS:
At the beginning of the
period 7,186 1,220 551
-------- -------- -------
At the end of the
period Ps 1,964 Ps 1,438 US$ 650
-------- -------- -------
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