Dolphin Telecom Announces Fourth Quarter and Year 2000 Results.Business Editors BASINGSTOKE Basingstoke (bā`zĭngstōk), city (1991 pop. 73,027), Hampshire, S central England, on the North Downs. Formerly a market town trading in silk and woolens, it has developed several industries, including the manufacture of agricultural , U.K. & MONTREAL--(BUSINESS WIRE)--March 7, 2001 DOLPHIN dolphin, fish dolphin, large, swift game fish, Coryphaena hipparus, also called dorado. It is of nearly worldwide distribution in warm waters. (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 :TIWI TIWI Telesystem International Wireless Incorporated (Montreal, Quebec, Canada) )(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :TIW Tiw (tē`  ), Norse Tyr (tür), ancient Germanic god. .)HIGHLIGHT For the fourth quarter and year ended December December: see month. 31, 2000 (All amounts are in US$, unless otherwise stated) -- As of December 31, 2000, 51,100 digital subscribers were connected to Dolphin's Enhanced Specialized Mobile Radio See SMR. (ESMR ESMR Enhanced Specialized Mobile Radio ESMR Extended Specialized Mobile Radio (Nextel) ESMR Expert Systems Message Router ESMR Electrically/Electronically Scanned/ing Microwave Radiometer ESMR Engine Starter Motor Relay ) network in the United Kingdom. Net ESMR subscriber additions in the fourth quarter of 2000 were 21,000, a significant increase when compared to each of the first three quarters of 2000 and double the number of additions of the third quarter. -- Revenues reached $26.7 million in the fourth quarter of 2000, compared to $26.0 million in the corresponding period of 1999. Revenues reached $90.7 million in the year ended December 31, 2000, compared to $97.3 million in the corresponding period of 1999. The small decrease in revenues for the year is due primarily to the growth in ESMR subscribers being lower than the expected SMR (Specialized Mobile Radio) The communications services used by police, ambulances, taxicabs, trucks and other delivery vehicles. Throughout the U.S., approximately 3,000 independent operators are licensed by the FCC to offer this service, which provides always-on (Specialized Mobile Radio) subscribers decrease and the adverse impact of foreign currency movements. -- 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. before depreciation and amortization was $46.3 million in the fourth quarter of 2000, compared to $33.6 million in the corresponding period of 1999. Operating loss before depreciation and amortization was $166.8 million in the year ended December 31, 2000, compared to $72.2 million in the corresponding period of 1999. The increased loss is mainly attributable to the continued build-out Build-out is an urban planner’s estimate of the amount and location of potential development for an area. Build-out is one step of the land use planning process. Evaluation of potential development impacts begins with a build-out analysis. of the European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. ESMR network and the increase in gross subscriber additions. -- Net loss for the fourth quarter of 2000 was $97.6 million, compared to a net loss of $59.9 million in the corresponding period of 1999. Net loss for the year ended December 31, 2000 was $351.9 million, compared to a net loss of $169.3 million in the corresponding period of 1999. The increased loss is mainly attributable to the launch and continued construction of the European ESMR network. -- In the fourth quarter of 2000, Dolphin launched pilot commercial ESMR services on a regional basis in Nord/Pas-de-Calais and Rhone-Alpes Noun 1. Rhone-Alpes - a mountainous region of eastern France drained by the Rhone and Saone and Isere rivers France, French Republic - a republic in western Europe; the largest country wholly in Europe in France. Two additional regions in France will be added in the first half of 2001, including Paris. -- In the first quarter of 2001, Dolphin will account for a $270 million impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. in long-lived long-lived adj. 1. Having a long life: a long-lived aunt. 2. Lasting a long time; persistent: a long-lived rumor. 3. assets in countries where ESMR services have not yet been launched. For the fourth quarter ended December 31, 2000 All amounts are in US$, unless otherwise stated DOLPHIN TELECOM Dolphin Telecom was a mobile network operator using the TETRA radio access technology. Their initial network was in the UK but also built networks in France, Germany and Belgium. ANNOUNCES FOURTH QUARTER AND YEAR 2000 RESULTS Telesystem International Wireless Inc. (Nasdaq:TIWI)(TSE.TIW.) announces that its subsidiary, Dolphin Telecom plc ("Dolphin" or the "Company"), reported today its results for the year and the fourth quarter ended December 31, 2000. As of December 31, 2000, Dolphin reached 51,100 ESMR (Enhanced Specialized Mobile Radio) subscribers in the United Kingdom. During the quarter, net ESMR subscriber additions were 21,000 in the U.K., more than doubling the 9,300 additions in the third quarter. This strong growth at the end of 2000 followed a challenging first half of the year as a result of issues with handsets delivered. The re-introduction Noun 1. re-introduction - a proposal of something previously rejected; "they avoided a re-introduction of the old terminology" proposal - something proposed (such as a plan or assumption) of the Nokia Nokia (nō`kēä), town (1996 pop. 26,326), Western Finland prov., SW Finland, on Lake Näsijärvi. It is an industrial community where wood and rubber products are manufactured. 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. and the release of an improved version of the Motorola (Motorola, Inc., Schaumburg, IL, www.motorola.com) A leading manufacturer of semiconductor devices, electronics, telecommunications and satellite systems. Founded in Chicago in 1928 by Paul V. handset helped to drive the growth in the latter part of the year. "I am very pleased with our performance in the fourth quarter. In the last three months of 2000, we achieved impressive momentum in signing up new subscribers and added some very important new customers, including WHSmith and KLM KLM Kaiserliche Marine (Enigma: Rising Tide game) KLM Koninklijke Luchtvaart Maatschappij (Royal Dutch Airlines) KLM Klub Langer Menschen (German: Tall Person Club) Ground Services, as well as developing our services for existing customers, such as Canary Wharf
Canary Wharf is a large business development in London, located on the Isle of Dogs in the London Borough of Tower Hamlets, centred on the old West India Docks in Contractors Ltd," said Steven Ste´ven n. 1. Voice; speech; language. Ye have as merry a steven As any angel hath that is in heaven. - Chaucer. 2. An outcry; a loud call; a clamor. To set steven to make an appointment. Evans Ev·ans , Herbert McLean 1882-1971. American anatomist who isolated four pituitary hormones and discovered vitamin E (1922). , President and Chief Executive Officer. "Our strategy to target vertical segments of the market is beginning to pay off and we are now experiencing increased interest in Dolphin services across a number of key sectors, such as construction, distribution and supply services. At the same time, existing customers are increasing the number of Dolphin subscribers on the service as they gain confidence. I expect our 2001 customer growth to accelerate in the second half as we introduce new lighter and slimmer handsets into the U.K.," added Mr Steven Evans. The accelerated subscriber growth in the U.K. was largely a result of strong promotional activities during the fourth quarter of 2000. Connection rates in the first two months of 2001 are running at a lower level reflecting expected seasonality and problems encountered in the supply chain for vehicular adaptors (car kits). Normal volumes and supply are anticipated for March and Dolphin maintains its net subscriber additions target for the year. In the fourth quarter of 2000, Dolphin launched pilot commercial ESMR services in France on a regional basis in Nord/Pas de Calais Calais (kälā`), city (1990 pop. 78,836), Pas-de-Calais dept., N France, in Picardy, on the Straits of Dover. An industrial center with a great variety of manufactures, it has been a major commercial seaport and a communications center with and Rhone-Alpes. Service in the Provence/Cote d'Azur region was launched in February February: see month. 2001 and Dolphin expects to offer service in the Paris metropolitan area in the near future. Current priorities in France are to develop network coverage in these initial regions to provide a base for increased marketing efforts. Dolphin expects to increase its growth rate in subscriber additions as new regions are added, offering broader coverage for French customers. The introduction of the new generation handsets in France later in the year is also expected to positively impact subscriber growth. By the end of 2000, Dolphin had 954 integrated sites in its United Kingdom ESMR network, integrating 402 cell sites during the year ended December 31, 2000. In France, 325 cell sites were integrated during 2000 to reach a total of 500 by the end of 2000. Dolphin closed the fourth quarter with a total subscriber base of 273,500 at December 31, 2000, compared to 259,200 at September September: see month. 30, 2000. The increase is mainly attributable to the significant increase in ESMR subscribers as well as the 12,300 SMR subscribers acquired through an acquisition in Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). . Total SMR customers were 222,000 at December 31, 2000, a net decline of 7,200 customers, including a migration to ESMR of 3,600, compared to 229,200 as of September 30, 2000. In December 2000, Dolphin announced its 2001 development plans. Dolphin indicated it would continue to focus on the U.K. market where it has a national digital network and a growing subscriber base. In its other European markets, Dolphin announced its intention to scale its investments towards launches in the second half of 2001 and had estimated it would need a total of $600 million to $700 million of additional capital in 2001 to fully meet these expansion plans. Of this amount, TIW announced its plans to invest $300 million and had indicated that the extent to which it would support Dolphin at or beyond $300 million would be a function of the progress made by Dolphin in meeting its objectives and of TIW's ability to raise additional funds through the sale of assets or by addressing capital markets. As announced in December 2000, the actual scale of investment by Dolphin and schedule for deployment of ESMR services in new regions will be a function of several factors. The timely availability of a next generation handsets, the availability and deployment of infrastructure and the availability of additional debt and equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. were amongst factors which would impact Dolphin's plans, especially in regards to countries where ESMR services had not yet been launched. Dolphin intends to initiate a process to establish investment-based joint ventures in each of the UK, France and Germany with an objective of raising capital and achieving mutually beneficial Adj. 1. mutually beneficial - mutually dependent interdependent, mutualist dependent - relying on or requiring a person or thing for support, supply, or what is needed; "dependent children"; "dependent on moisture" synergies. Dolphin has also initiated discussions to amend the terms or 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 certain covenants of its credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities . The outcome of those initiatives remains uncertain. In view of deteriorating de·te·ri·o·rate v. de·te·ri·o·rat·ed, de·te·ri·o·rat·ing, de·te·ri·o·rates v.tr. To diminish or impair in quality, character, or value: financial markets and uncertainties regarding Dolphin's short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. financing plan, management is developing alternative plans that will curtail cur·tail tr.v. cur·tailed, cur·tail·ing, cur·tails To cut short or reduce. See Synonyms at shorten. [Middle English curtailen, to restrict capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. . Consistent with Dolphin's focus on its U.K. operation, the adoption of such plans will entail entail, in law, restriction of inheritance to a limited class of descendants for at least several generations. The object of entail is to preserve large estates in land from the disintegration that is caused by equal inheritance by all the heirs and by the ordinary postponing or considerably scaling down ESMR service launches scheduled for the second half of 2001. As a result, Dolphin has decided to provide for impairment in the value of certain long-lived assets in countries where digital services launches will be curtailed or delayed. In aggregate, $270 million of long-lived assets will be charged to income in the first quarter 2001. The effect of the write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. on the Company's net loss will be approximately $240 million after deduction deduction, in logic, form of inference such that the conclusion must be true if the premises are true. For example, if we know that all men have two legs and that John is a man, it is then logical to deduce that John has two legs. of $30 million for deferred income taxes. The write-down is a non-cash expense Noun 1. non-cash expense - an expense (such as depreciation) that is not paid for in cash disbursal, disbursement, expense - amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures) and has no effect on future cash flows of the Company. Dolphin has yet to secure the financing needed to fulfil ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. all its 2001 investment plans. Its capacity to secure such financing may impact the extent to which it reaches its objectives. In October 2000, Dolphin signed an agreement with Crown Castle UK Limited ("Crown Castle") to outsource the build-out of Dolphin's wireless infrastructure in the United Kingdom. Under the two-year agreement, Crown Castle will identify and secure sites for Dolphin's network, and build Dolphin's equipment on radio sites across the United Kingdom. During 2000, Dolphin made progress on the standardisation Noun 1. standardisation - the condition in which a standard has been successfully established; "standardization of nuts and bolts had saved industry millions of dollars" standardization and development of TETRA tetra: see characin. tetra Any of numerous attractively coloured freshwater South American and African fishes (family Characidae), often kept in home aquariums. Tetras are small, lively, hardy, and unaggressive. . The European Telecommunications Standards Institute (body) European Telecommunications Standards Institute - (ETSI) A European version of the ITU-T(?). (ETSI (European Telecommunications Standards Institute, Sophia Antipolis technical park, Nice, France, www.etsi.org) A non-profit membership organization founded in 1988, dedicated to standardizing information and communication technologies (ICT) throughout Europe. ) initiated a process for the adoption of further enhancements to the TETRA standard. These enhancements will support the development of TETRA in the global competitive 3G market place. The most significant enhancements will be high-speed packet data and improved interoperability The capability of two or more hardware devices or two or more software routines to work harmoniously together. For example, in an Ethernet network, display adapters, hubs, switches and routers from different vendors must conform to the Ethernet standard and interoperate with each other. with mobile networks including GSM (Global System for Mobile Communications) A digital cellular phone technology based on TDMA that is the predominant system in Europe, but also used worldwide. Developed in the 1980s, GSM was first deployed in seven European countries in 1992. , GPRS (General Packet Radio Service) The first high-speed digital data service provided by cellular carriers that used the GSM technology. GPRS added a packet-switched channel to GSM, which uses dedicated, circuit-switched channels for voice conversations. and UMTS (Universal Mobile Telecommunications System) The GSM implementation of the 3G wireless phone system. Part of IMT-2000, UMTS provides service in the 2 GHz band and offers global roaming and personalized features. . Review of Operations Total service revenues were $19.5 million and $76.6 million for the three-month and twelve-month periods ended December 31, 2000, respectively, as compared to $21.9 million and $89.3 million for the corresponding periods of 1999. Service revenues have been negatively affected by the anticipated decline in the SMR customer base, which was not totally offset by the increase of ESMR subscribers, as well as 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. of the euro and the pound sterling against the dollar. ESMR ARPU (Average Revenue Per User) A calculation often used to determine the overall value of an application. It is also used to rate particular customers, especially in the wireless space, by comparing someone's account to the overall average. stood at $40 for the quarter, a 8% increase when compared to the third quarter. The main reason for the increase is a reduction in discounts and credits as well as increased calls outside the Dolphin network (PSTN (Public Switched Telephone Network) The worldwide voice telephone network. Once only an analog system, the heart of most telephone networks today is all digital. In the U.S. ). Equipment revenues stood at $7.2 million for the fourth quarter of 2000, as compared to $4.1 million for the corresponding period of 1999. For the twelve-month periods of 2000 and 1999, equipment revenues totaled $14.1 million and $8.0 million, respectively. The increase in revenues reflects the increase in gross additions as a result of the ESMR's launch in the United Kingdom. Cost of equipment amounted to $19.3 million and $42.1 million for the three-month and twelve-month periods ended December 31, 2000, compared to $13.8 million and $17.2 million for the corresponding periods of 1999. The increase in cost of equipment reflects the Company's policy on 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. . Cost of services amounted to $18.7 million and $80.9 million for the three-month and twelve-month periods ended December 31, 2000, compared to $10.2 million and $41.9 million for the corresponding periods of 1999. The margin on services Margin on Services, also referred to as "MoS", is the financial reporting method developed by the Australian Accounting Standards Board which relates to life insurance companies in Australia. of 4.1% for the fourth quarter of 2000, compared to the 53% for the corresponding period of 1999, is mainly attributable to the launch of ESMR services in the United Kingdom and France, and a declining SMR subscriber base. Selling, general and administrative expenses remained stable at $35.0 million in the fourth quarter of 2000 when compared to the corresponding period of 1999. For the years 2000 and 1999, it reached $134.5 million and $110.5 million, respectively. Increased selling and marketing activities in the United Kingdom for ESMR services are the main contributors for the increase. In addition, regional selling and marketing activities increased in France for the launch of commercial ESMR services in the fourth quarter. Operating loss before depreciation and amortization was $46.3 million and $166.8 million for the three-month and twelve-month periods ended December 31, 2000, while it stood at $33.6 million and $72.2 million for the corresponding periods of 1999, respectively. The launch of commercial ESMR services in the United Kingdom and in France as well as continued ESMR network build-out efforts contributed to the increased operating losses. Depreciation and amortization amounted to $23.2 million for the fourth quarter of 2000, compared to $18.8 million for the corresponding period of 1999. The increase is mainly attributable to the increased tangible assets Tangible Asset An asset that has a physical form such as machinery, buildings and land. Notes: This is the opposite of an intangible asset such as a patent or trademark. Whether an asset is tangible or intangible isn't inherently good or bad. base. For the twelve-month period ended December 31, 2000, depreciation and amortization totaled $117.2 million, compared to $76.1 million for the corresponding period of 1999. The $41.1 million increase is due to a higher tangible asset base, the commencement of depreciation of the United Kingdom ESMR network assets and the $22.9 million impairment provision taken, earlier this year, against the SMR assets in Belgium, Germany and Spain. The net loss in the fourth quarter of 2000 was $97.6 million, compared to a net loss of $59.9 million for the corresponding period of 1999. The net loss for the quarter was negatively effected by higher financing costs and a foreign exchange loss of $15.4 million. The net loss for the twelve-month periods ended December 31, 2000 and 1999, was $351.9 million and $169.3 million, respectively. The increase in net loss is mainly attributable to the launch of ESMR services in the United Kingdom in the latter part of 1999, the build-out of the French ESMR network and the initial development of the German and Belgium ESMR networks. Liquidity and Capital Resources As of December 31, 2000, the Company held cash and cash equivalents of $62.7 million, compared to $257.5 million as of December 31, 1999. The decrease primarily represents the result of the Company's capital expenditure attributable to the build-out of its ESMR networks in the United Kingdom, France, Germany and Belgium and selling and marketing expenses following the launch of ESMR services in the United Kingdom and France, partly offset by the proceeds from the issue of shares, drawings under the United Kingdom and the German credit facilities and a loan from a related party. Cash used in investing activities in the three and twelve-month periods ended December 31, 2000 amounted to $207.9 million and $537.0 million, respectively. The Company continued to invest in the acquisitions of tangible fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → in relation to the build-out of its ESMR networks and support systems. The Company has a $250 million credit facility with Motorola Credit Corporation to fund the build-out of its ESMR network in Germany. The facility denominated in euro matures on February 1, 2003. As of December 31, 2000, 89.8 million euro (approximately $84.6 million) were drawn. The future availability of funds is subject to fulfilment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. of certain conditions. The Company will not be able to meet certain of the March 31, 2001 covenants under this facility, including the number of sites built and the number of subscribers. Although the Company believes that it will be successful in obtaining 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. regarding the breaches, the outcome of the negotiations cannot be determined. In the event that the company would not be successful in its negotiations, it could limit its ability to draw further on this facility and hence impact future results of its German operation. During 2000, in connection with obtaining a waiver from the fulfilment of certain covenants, Dolphin's 215 million pounds sterling ($317 million) United Kingdom bank credit facility was reduced to 64 million pounds sterling ($95.5 million), the amount currently outstanding. This credit facility matures in June 2001 and the Company is currently in negotiations for its refinancing Refinancing An extension and/or increase in amount of existing debt. . As of December 31, 2000, total assets amounted to $1,253.0 million with 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. (including current maturities and loans due to a related party) of $925.3 million. During the quarter, Dolphin Corporation Limited (a direct wholly-owned subsidiary of Dolphin Telecom plc) borrowed 116.5 million pounds sterling ($173.9 million) from an affiliate of its principal shareholder. TIW has offered to Dolphin Corporation Limited to refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. such loans together with similar loans made in 2001 through a new credit facility. Conference Call The conference call with analysts on the fourth quarter and 2000 results for TIW, Dolphin and ClearWave will be made available via an audio web cast from our 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 site. The web cast is scheduled to begin at 9:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy on Wednesday, March 7, 2000 (at http://www.tiw.ca). A replay of the conference call can also be heard between 12:00 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. on Wednesday, March 7 and 11:59 p.m. EST on Friday, April 6. To access the replay facility, dial (416) 695-5800 and you will be instructed to enter the access code: 705765. Forward Looking Statements This news release may contain certain forward looking statements that reflect the current views and/or expectations of Dolphin Telecom plc with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly. About Dolphin Telecom plc Dolphin Telecom is building a pan-European digital ESMR network. It began offering national commercial ESMR services in the United Kingdom in the third quarter of 1999, and launched pilot commercial ESMR services, on a regional basis, in France in the fourth quarter of 2000. Dolphin, which groups TIW's SMR and ESMR activities in the United Kingdom, France, Germany, Belgium, Luxembourg, Portugal and Spain, is the largest SMR and ESMR operator in Europe, serving approximately 273,500 subscribers. It holds licenses covering a population of more than 248 million. About TIW TIW is a rapidly-growing, global mobile communications operator with over 4.8 million subscribers worldwide. The Company's shares are listed on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. ("TIW") and NASDAQ ("TIWI"). In addition to its Dolphin operations, TIW is the strategic partner of one of the country's largest cellular groups in Brazil. In Central and Eastern Europe The term "Central and Eastern Europe" came into wide spread use, replacing "Eastern bloc", to describe former Communist countries in Europe, after the collapse of the Iron Curtain in 1989/90. , TIW is a cellular market leader in Romania and launched services in the Czech Republic Czech Republic, Czech Česká Republika (2005 est. pop. 10,241,000), republic, 29,677 sq mi (78,864 sq km), central Europe. It is bordered by Slovakia on the east, Austria on the south, Germany on the west, and Poland on the north. in March 2000.
DOLPHIN TELECOM PLC
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SELECTED CONSOLIDATED FINANCIAL AND OPERATING DATA (UNAUDITED)
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Prepared Using International
Accounting Standards
Three months Twelve months
ended December 31, ended December 31,
2000 1999 2000 1999
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STATEMENT OF LOSS AND CASH
FLOWS DATA
(in thousands of US dollars) $ $ $ $
Revenues 26,690 26,003 90,694 97,329
Operating loss before
depreciation and
amortization (46,312) (33,567) (166,804) (72,188)
Net loss (97,627) (59,899) (351,939) (169,269)
Acquisitions of
tangible fixed assets 207,361 60,806 532,033 241,989
December 31, December 31,
2000 1999
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BALANCE SHEET DATA
(in thousands of US dollars) $ $
Cash and cash equivalents 62,677 257,532
Total assets 1,252,961 1,061,755
Short-term and long-term debt 925,277 600,186
Shareholders' equity 12,483 193,597
OVERVIEW OF OPERATIONS December 31, 2000
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Dolphin
Telecom Licensed Coverage
Equity (% of population)
Technology (%)
United Kingdom ESMR 100.0 Nationwide (100%)
United Kingdom SMR 100.0 Nationwide (100%)
France ESMR 100.0 Nationwide (100%)
France SMR 100.0 Nationwide (97%)
Germany(2) ESMR 93.2 Regional (87%)
Germany(2) SMR 93.2 Regional (87%)
Belgium ESMR 100.0 Nationwide (100%)
Belgium SMR 100.0 Nationwide (100%)
Luxembourg ESMR 100.0 Nationwide (100%)
Portugal(3) ESMR 75.0 Nationwide (100%)
Portugal(3) SMR 75.0 Nationwide (100%)
Spain ESMR 100.0 Nationwide (100%)
Spain SMR 100.0 Regional (37%)
OVERVIEW OF OPERATIONS December 31, 2000
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Licensed Fully Diluted
POPs(1) Equity POPs Total
Technology (in millions) (in millions) Subscribers
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United Kingdom ESMR 59.3 59.3 51,100
United Kingdom SMR 59.3 59.3 36,600
France ESMR 59.0 59.0 400
France SMR 57.2 57.2 33,100
Germany (2) ESMR 71.7 66.8 -
Germany (2) SMR 71.7 66.8 138,000
Belgium ESMR 10.2 10.2 -
Belgium SMR 10.2 10.2 2,800
Luxembourg ESMR 0.4 0.4 -
Portugal (3) ESMR 10.0 9.0 -
Portugal (3) SMR 10.0 9.0 8,000
Spain ESMR 39.4 39.4 -
Spain SMR 14.6 14.6 3,500
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Total SMR 223.0 217.1 273,500
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--------- -----------
Total ESMR 250.0 244.1
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---------
Total POPs 250.0 244.1
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(1) Nationwide population figures rely on estimates from The Economist Intelligence Unit The Economist Intelligence Unit (EIU) is part of The Economist Group. It is a research and advisory company providing country, industry and management analysis worldwide and incorporates the former Business International Corporation, a U.S. Limited (C) 2000, EIU EIU Economist Intelligence Unit EIU Eastern Illinois University EIU Even If Used EIU Experimental Interaction Unit EIU Engine Interface Unit EIU Ethernet Interface Unit EIU Electronic Interface Unit EIU External Interface Unit Report 1st quarter 2000. Regional population figures for France, Germany and Spain are the Company's estimates. (2) In Germany, the Company has licenses in all of the 14 principal metropolitan (or A) regions and licenses in several adjacent (or B) regions. Together, these licenses allow the Company to reach approximately 87% of the German population. As the Company expands its network coverage beyond its existing licensed coverage area, it will apply for additional B licenses in these uncovered Uncovered may refer to:
n the mechanical part of a gas delivery system that controls gas pressure that allows a manageable flow of drug vapor to escape. regulator see reducing valve. has never rejected the application. (3) The Company has the option to increase its ownership of Dolphin Portugal to 90% for a subscription price of euro 4.3 million (approximately $3.8 million), including the repayment of shareholder loans.
DOLPHIN TELECOM PLC
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CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands of US dollars)
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Prepared Using International
Accounting Standards December December
31, 2000 31, 1999
$ $
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ASSETS
Current assets
Cash and cash equivalents 62,677 257,532
Restricted cash 37,178 12,165
Trade debtors 13,327 15,840
Inventories 6,462 10,331
Prepaid expenses and other current assets 67,922 43,209
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Total current assets 187,566 339,077
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Restricted cash 103 4,471
Investment in associate 430 -
Tangible fixed assets 847,338 453,623
Intangible assets 204,406 238,752
Other non-current assets 13,118 25,832
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1,252,961 1,061,755
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Trade creditors and accrued liabilities 249,088 179,048
Deferred revenues 2,664 5,838
Amounts due to related parties 1,869 2,139
Loans due to a related party 178,941 -
Current portion of long-term debt 100,815 10,708
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Total current liabilities 533,377 197,733
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Long-term debt 645,521 589,478
Deferred taxation 58,494 71,311
Minority interests 3,086 9,636
---------------------------------------------------------------------
Shareholders' equity
Share capital 2,445 2,076
Additional paid in capital 648,826 457,533
Deficit (605,728) (253,789)
Cumulative translation adjustment (33,060) (12,223)
---------------------------------------------------------------------
Total shareholders' equity 12,483 193,597
---------------------------------------------------------------------
1,252,961 1,061,755
---------------------------------------------------------------------
---------------------------------------------------------------------
DOLPHIN TELECOM PLC
---------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF LOSS (UNAUDITED)
(in thousands of US dollars)
---------------------------------------------------------------------
---------------------------------------------------------------------
Three months ended Twelve months ended
Prepared Using International December 31, December 31,
Accounting Standards
2000 1999 2000 1999
$ $ $ $
---------------------------------------------------------------------
---------------------------------------------------------------------
Revenues
Services 19,538 21,899 76,570 89,300
Equipment 7,152 4,104 14,124 8,029
---------------------------------------------------------------------
26,690 26,003 90,694 97,329
Cost of services 18,733 10,194 80,866 41,867
Cost of equipment 19,303 13,840 42,081 17,186
Selling, general and
administrative expenses 34,966 35,536 134,551 110,464
Depreciation and
amortization 23,188 18,795 117,225 76,126
---------------------------------------------------------------------
Operating loss (69,500) (52,362) (284,029) (148,314)
Share of income of
investees 33 - 139 -
Interest expense (23,337) (10,777) (80,736) (41,093)
Interest income 1,884 2,670 7,508 10,394
Foreign exchange (loss)
gain (15,398) 1,334 (6,392) 7,722
---------------------------------------------------------------------
Loss before income taxes
and minority interests (106,318) (59,135) (363,510) (171,291)
Income taxes 8,699 (806) 11,359 1,913
---------------------------------------------------------------------
Loss before minority
interests (97,619) (59,941) (352,151) (169,378)
Minority interests (8) 42 212 109
---------------------------------------------------------------------
Net loss (97,627) (59,899) (351,939) (169,269)
---------------------------------------------------------------------
---------------------------------------------------------------------
DOLPHIN TELECOM PLC
---------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands of US dollars)
---------------------------------------------------------------------
---------------------------------------------------------------------
Prepared Using International Three months Twelve months
Accounting Standards ended ended
December 31, December 31,
2000 1999 2000 1999
$ $ $ $
---------------------------------------------------------------------
---------------------------------------------------------------------
OPERATING ACTIVITIES
Net loss (97,627) (59,899) (351,939) (169,269)
Depreciation and
amortization 23,188 18,795 117,225 76,126
Accreted interest on
long-term debt 23,020 15,151 78,314 52,156
Capitalized interest (3,157) (9,824) (14,449) (25,223)
Minority interests (25) (42) (351) (109)
Income taxes (8,699) 806 (11,359) (1,913)
Unrealized foreign exchange
loss (gain) 16,628 (9,928) (4,200) (25,191)
Changes in operating
assets and liabilities 74,362 (20,600) 76,245 19,844
---------------------------------------------------------------------
Cash provided (used) in
operating activities 27,690 (65,541) (110,514) (73,579)
---------------------------------------------------------------------
INVESTING ACTIVITIES
Acquisitions of tangible
fixed assets (207,361) (60,806) (532,033) (241,989)
Investments (4,146) - (6,628) (36,930)
Decrease (increase) in
other non-current assets 3,615 686 1,700 3
---------------------------------------------------------------------
Cash used in investing
activities (207,892) (60,120) (536,961) (278,916)
---------------------------------------------------------------------
FINANCING ACTIVITIES
Increase in share capital
(net of issue costs) - (714) 188,362 202,040
Proceeds from shares
issued to non-controlling
interests - - - 33,000
Issuance of Senior
Discount Notes - - - 150,131
Financing costs - - (1,698) (9,352)
Loan from parent company 168,254 - 168,254 -
Changes in long-term debt 14,904 14,574 102,814 66,600
---------------------------------------------------------------------
Cash provided by financing
activities 183,158 13,860 457,732 442,419
---------------------------------------------------------------------
Effect of exchange rate
changes on cash 2,919 (2,281) (5,112) (3,207)
---------------------------------------------------------------------
Increase (decrease) in
cash and cash equivalents
for the period 5,875 (114,082) (194,855) 86,717
Cash and cash equivalents,
beginning of period 56,802 371,614 257,532 170,815
---------------------------------------------------------------------
Cash and cash equivalents,
end of period 62,677 257,532 62,677 257,532
---------------------------------------------------------------------
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