Csii Presents Results for Third Quarter 2000 and Announces Inclusion in the TSE 300.Business Editors LONGUEUIL, Quebec--(BUSINESS WIRE)--Nov. 27, 2000 Cable Satisfaction International Inc. ("Csii" or the Company") (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CSQ CSQ Certificat de Sélection du Québec (Quebec selection certificate; immigration document) CSQ Carrier Squelch (radio, scanner) CSQ Customer Satisfaction Questionnaire .A.) is pleased to present its consolidated results for the third quarter of 2000 and to announce its inclusion in the TSE 300 Composite Index Composite Index A grouping of equities, indexes or other factors combined in a standardized way, providing a useful statistical measure of overall market or sector performance over time. Also known simply as a "composite". . Csii in the TSE 300 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. the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. (TSE), "Inclusion in the TSE 300 is a enviable achievement that ensures a stronger presence for the Company within the financial community, and places it among Canada's major companies. Csii was assigned to sub-index number 11.02, Communications and Media, and is also a part of the S&P/TSE Canadian Small Caps See Small capital Index." "Inclusion of Csii stock in the TSE 300 and the Canadian Small Caps Index since November 23, 2000 speaks to the soundness of our development strategy in Portugal and of the continuous evolution of our activities," said Guy Laflamme, President and Chief Executive Officer of Csii. The consistent increase in the number of subscribers to cable television and to the value-added services we introduced in Portugal reflects our solid position, as well as the country's strong potential. The new licenses we have obtained bring the number of potential homes to close to three million. The opening of new offices in Portugal, the activation of leading-edge equipment, the launch of cable telephony See cable telephone. and the constant progress being made in the construction of our fiber optics fiber optics, transmission of digitized messages or information by light pulses along hair-thin glass fibers. Each fiber is surrounded by a cladding having a high index of refractance so that the light is internally reflected and travels the length of the fiber backbone are evidence of our continued growth," he noted. In fact, the most recent operating results already exceed those achieved in the third quarter. At November 19, 2000, Csii's Portuguese subsidiary had 311,287 homes passed and 90,777 subscribers to basic service, 18,229 of whom subscribe to Verb 1. subscribe to - receive or obtain regularly; "We take the Times every day" subscribe, take buy, purchase - obtain by purchase; acquire by means of a financial transaction; "The family purchased a new car"; "The conglomerate acquired a new company"; pay television. In addition, the number of subscribers to high-speed Internet See broadband. service totalled 4,262, an increase of over 43% compared to the results at September 30, 2000. Third Quarter Results Highlights Launch Of Telephony Over Cable Cable Satisfaction International Inc. ("Csii" or the "Company") is pleased to announce that Cabovisao - Televisao por Cabo S.A. ("Cabovisao"), its Portuguese subsidiary, launched residential telephony over cable under the IPhone brand during the third quarter of 2000. Subscribers in the Palmela region can already add telephony service to cable television and high-speed Internet access, while benefiting from the advantages of a single bill. Telephony services are billed by the second and all call details appear on the billing statement, another first in Portugal. Using Nortel Network's Cornerstone technology, the telephony service enables both local and long distance calling at very competitive rates. Telephony will be offered progressively during 2001 to homes passed by Cabovisao. New Licenses During the third quarter, Cabovisao obtained new licenses from the Instituto das Communicacoes de Portugal ("ICP (1) (Internet Cache Protocol) A protocol used by one proxy server to query another for a cached Web page without having to go to the Internet to retrieve it. See CARP and proxy server. ") in the Porto, Braga and Coimbra regions, increasing the number of potential homes to 2,992,000. Consolidated Results Nine Months Ended September 30, 2000 For the nine months ended September 30, 2000, operating revenues were $13.3 million, compared with $17.1 million in 1999. A loss before interest, taxes, depreciation and amortization of $3.3 million was recorded for the first nine months of 2000, compared with earnings of $1.4 million in 1999. These declines are due to the fact that WSG's results were consolidated only up until its disposal date on January 18, 2000, whereas they had been consolidated for the first nine months of 1999. Consequently, operating revenues relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc WSG WSG Web Standards Group WSG Warsong Gulch (World of Warcraft; gaming) WSG Web Services Gateway (IBM) WSG Washington, Pennsylvania (Airport Code) of only $679,000 were recorded for the first nine months of 2000, compared to $10.9 million in 1999. Accordingly, WSG posted 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 of $186,000 for the nine months ended September 30, 2000, compared to $3.7 million for the same period in 1999. Including the gain on disposal of WSG amounting to $24.6 million recorded in the first quarter, the Company recorded net earnings of $4.8 million, or $0.08 per share, for the first nine months of 2000, compared with a net loss of $8.0 million, or $0.27 per share, in 1999. Review of Operations Portugal - The number of homes passed increased to 295,645 at the end of the third quarter of 2000 from 179,802 on September 30, 1999, an increase of 64%. The number of basic service subscribers rose 94% to 85,075 on September 30, 2000 from 43,935 on September 30, 1999. The number of pay TV subscribers reached 15,873 compared to 6,348 in the year-ago period, an increase of 150%. In addition, the number of subscribers to high-speed Internet services reached 2,963 as of September 30, 2000. The growth in the number of subscribers to cable TV and to the newly launched Internet service generated an increase of 96% in operating revenues, to $4.9 million for the third quarter of the current year from $2.5 million for the third quarter ended September 30, 1999. This increase would have been even more significant but for the decline in the value of the euro in relation to the Canadian dollar Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents . Indeed, with an exchange rate identical to that prevailing in the third quarter of 1999, operating revenues would have been $5.7 million, an increase of 128%. A loss before interest, taxes, depreciation and amortization of $515,000 was posted in the third quarter of 2000, compared to a loss of $231,000 for the same period the previous year. The higher loss is attributable to the deployment of the HFC network (Hybrid Fiber-Coax network) A communications network (typically a cable TV network) that uses a combination of optical fibers and coaxial cable. The fiber provides the high-speed backbone, and the coax is used to connect end users to the backbone. , launching of Internet services, as well as the hiring of additional personnel needed for the company's growth. Rapid network deployment explains the 79% increase in depreciation, which reached $2.5 million for the third quarter of 2000, compared to $1.4 million for the same period in 1999. Consequently, Cabovisao's operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. reached $3.0 million, compared to $1.6 million in 1999. For the nine months ended September 30, operating revenues increased by 100% to $12.6 million in 2000 from $6.3 million in 1999. During the first nine months of 2000, the loss before interest, taxes, depreciation and amortization was $1.9 million, compared to $1.1 million in 1999. Third Quarter Ended September 30, 2000 For the third quarter ended September 30, 2000, consolidated operating revenues were $4.9 million compared with $6.2 million for the same quarter in 1999. This decrease reflects mainly the fact that World Satellite Guadeloupe S.A. ("WSG") contributed revenues of $3.6 million in the third quarter of 1999, whereas no revenues were recorded in the latest period since WSG was sold early in the first quarter of 2000. A loss before interest, taxes, depreciation and amortization of $885,000 was recorded in the third quarter of 2000, compared with earnings of $626,000 for the same period last year. This loss is mainly due to the fact that WSG's results were not included in the third quarter of 2000, unlike in the corresponding period of 1999 when WSG posted earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
2. (hardware) HFC - hydrofluorocarbon. ) network, launching of Internet services, as well as the hiring of additional personnel required for the company's growth. Depreciation and amortization reached $2.6 million in the third quarter of the current year, compared to $2.2 million for the same period in 1999. Operating loss was $3.4 million in 2000, compared to $1.5 million in 1999. Financial revenues of $2.8 million were recorded in the third quarter of 2000, compared to $257,000 for the same period last year. This increase is due to interest revenues generated by the Company's cash and cash equivalents. Financial expenses for the third quarter of 2000 reached $8.9 million, compared to $1.5 million in 1999. This increase is mainly due to interest expenses related to Senior Notes issued during the first quarter of 2000. A foreign exchange loss of $2.0 million was posted in the third quarter of 2000, compared to a gain of $244,000 for the same period in 1999. This is mainly attributable to the depreciation of the euro relative to the Canadian dollar. The third quarter net loss was $10.7 million, or $0.18 per share, compared with a net loss of $2.9 million, or $0.08 per share, for the same period in 1999. Csii builds and operates large bandwidth hybrid fiber coaxial (HFC) networks and, through its subsidiary Cabovisao, provides cable television services and high-speed Internet access in Portugal, where it will also be offering telephony and high-speed data transmission services. Csii will also build a national fibre optic backbone to offer all the services of the new digital economy throughout Portugal. The subordinate voting shares Voting Shares Shares that give the stockholder the right to vote on matters of corporate policy making as well as who will compose the members of the board of directors. Notes: Different classes of shares, such as preferred stock, sometimes don't allow for voting rights. of Csii are listed on The Toronto Stock Exchange. |
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