Dolphin Telecom Announces Second Quarter 1999 Results and Launch of its UK ESMR National Services.BASINGSTOKES, United Kingdom and MONTREAL--(BUSINESS WIRE)--Aug. 10, 1999-- 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. (Nasdaq:TIWI TIWI Telesystem International Wireless Incorporated (Montreal, Quebec, Canada) ) (ME:TIW Tiw (tē`  ), Norse Tyr (tür), ancient Germanic god. .) (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :TIW.) announces the following: HIGHLIGHTS For the second quarter ended June June: see month. 30, 1999 All amounts are in US$, unless otherwise stated -- 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: revenues increased to $24.3 million in the second quarter of 1999, from $16.2 million in the corresponding period of 1998. 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 $12.3 million in the second quarter of 1999 compared to an operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. before depreciation and amortization of $1.5 million in the corresponding period of 1998. Net loss for the quarter was $36.4 million in the second quarter of 1999 compared to a loss of $7.4 million in the corresponding period of 1998. The increased losses are mainly a result of the 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 United Kingdom and French 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 networks and the initial development of the German ESMR network, the increased amortization expense related to the acquisitions made in the last year, and interest on Senior Discount Notes. -- Subscribers increased to 290,100 at June 30, 1999 from 180,600 at June 30, 1998, primarily as a result of the acquisitions of the 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 operations of Chekker and Quickfunk 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). . -- As at June 30, 1999, the Company had agreed terms or signed leases on all of the ESMR cell sites required for 90 percent population coverage in the United Kingdom. Of the required sites, approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 81 percent were in service and approximately 19 percent were in various stages of construction. Subsequent to the end of the quarter, these remaining sites were brought into service. On May 12, 1999, the Company released for sale its ESMR services in the United Kingdom. The Company started taking deliveries of handsets from its two suppliers, 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. and 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. , in August, and has begun to connect its first ESMR subscribers this week. -- On April 28, 1999, the Company completed a private placement of 252,429 of its A ordinary shares for gross proceeds of approximately $210 million. The shares were placed with several institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. and a subsidiary of TIW. -- On May 11, 1999, the Company completed an offering of $295 million 14 percent Senior Discount Notes due in 2009. This offering generated total net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of approximately $143.6 million. Interest payments will commence in 2004. -- On June 28, 1999, the Company completed a Euro 95 million (approximately $100 million) senior bank financing for the deployment Installing, setting up, testing and running. This military term, which means the placement of troops and equipment in the field, is widely used with computers as an alternate to the word "implementation. of its ESMR network in France. The facility, which matures on March 31, 2000, can be extended to June 30, 2000. The availability of funds and the extension are 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 precedent A court decision that is cited as an example or analogy to resolve similar questions of law in later cases. The Anglo-American common-law tradition is built on the doctrine of Stare Decisis ("stand by decided . -- At June 30, 1999, the Company held cash and cash equivalents of $415.7 million compared to $301.2 million at June 30, 1998, and $58.1 million at March 31, 1999. The increase primarily represents the net proceeds from the issue of A ordinary shares, the net proceeds from the issue of Senior Discount Notes, drawings under the United Kingdom bank credit facility and the Company's capital expenditure attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the build-out of its ESMR networks in the United Kingdom and France. PRESS RELEASE For the second quarter ended June 30, 1999 All amounts are in US$, unless otherwise stated Telesystem International Wireless Inc. (TSE/ME:TIW) (Nasdaq:TIWI) announces that its subsidiary, Dolphin Telecom plc ("Dolphin dolphin, fish dolphin, large, swift game fish, Coryphaena hipparus, also called dorado. It is of nearly worldwide distribution in warm waters. " or the "Company"), reported today its results for the second quarter and six months ended June 30, 1999. As at June 30, 1999, the Company had agreed terms or signed leases on all of the ESMR cell sites required for 90 percent population coverage in the United Kingdom. Of the required sites, approximately 81 percent were in service and approximately 19 percent were in various stages of construction. Subsequent to the end of the quarter, these remaining sites were brought into service. On May 12, 1999, the Company released for sale its ESMR services in the United Kingdom. The Company started taking deliveries of handsets from its two suppliers, Nokia and Motorola, in August, and has begun to connect its first ESMR subscribers this week. The Company has begun the build-out of its ESMR network in France and expects to introduce initial commercial ESMR services in the fourth quarter of 1999. In Germany, the Company has begun to purchase ESMR network infrastructure equipment and expects to introduce initial commercial ESMR services during the second quarter of 2000. The Company also expects to introduce commercial ESMR services in Belgium Belgium (bĕl`jəm), Du. België, Fr. La Belgique, officially Kingdom of Belgium, constitutional kingdom (2005 est. pop. 10,364,000), 11,781 sq mi (30,513 sq km), NW Europe. and Portugal Portugal (pôr`chəgəl), officially Portuguese Republic, republic (2005 est. pop. 10,566,000), 35,553 sq mi (92,082 sq km), SW Europe, on the western side of the Iberian Peninsula and including the Madeira Islands and the Azores in the during 2000. On April 28, 1999, the Company completed a private placement of 252,429 of its A ordinary shares for gross proceeds of $210 million. The shares were placed with several institutional investors, from Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). ,
the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of . A subsidiary of TIW invested $10 million
as part of this offering. The A ordinary shares are convertible into
ordinary shares of the Company currently representing approximately 19.2
percent of the total shares on a fully-diluted basis.On May 11, 1999, the Company completed an offering of $295 million 14 percent Senior Discount Notes due in 2009. This offering generated total net proceeds of approximately $143.6 million. Interest payments will commence in 2004. "The market recognizes that Dolphin is in a strong position to deliver a truly differentiated service Differentiated Service is a design pattern for business services and software, in which the service varies automatically according to the identity of the consumer and/or the context in which the service is used. using the 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. standard. The proceeds from these notes and the recently completed private equity offering enable Dolphin to properly capitalize To regard the cost of an improvement or other purchase as a capital asset for purposes of determining Income Tax liability. To calculate the net worth upon which an investment is based. To issue company stocks or bonds to finance an investment. its operations to continue the build-out of its ESMR network in the United Kingdom, France and Germany, and provides funds for initial development in Belgium and Portugal," said Yves Yves may refer to:
On June 28, 1999, the Company completed a Euro 95 million (approximately $100 million) senior bank financing for the deployment of its ESMR network in France. The facility, which matures on March 31, 2000, can be extended to June 30, 2000. The availability of funds and the extension are subject to fulfilment of certain conditions precedent. Review of Operations -- Quarter ended June 30, 1999 compared to quarter ended June 30, 1998 As a result mainly of business acquisitions, revenues reached $24.3 million in the second quarter of 1999 compared to $16.2 million in the corresponding period of 1998. Subscribers increased to 290,100 at June 30, 1999 from 180,600 at June 30, 1998, primarily as a result of the acquisitions of the SMR operations of Chekker and Quickfunk in Germany, the acquisition of the SMR operations of Bouygues Bouygues (Euronext: EN) is a French industrial group listed on Euronext Paris. It is a blue chip in the CAC 40 stock market index, founded in 1952 by Francis Bouygues (educated at the École Centrale Paris, 1946) and since 1989 led by his son Martin Bouygues. in France and the acquisition of the SMR operations of Protocall Ventures. The Company's ESMR networks in the United Kingdom, France and Germany are still in the pre-operating stage and as such did not generate revenues in 1998 or 1999. Gross margins before depreciation and amortization were 49.5 percent in the second quarter of 1999 compared to 71.1 percent in the corresponding period of 1998. The decrease is mainly attributable to increased analog 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. churn churn: see butter. and reduced revenue per analog subscriber primarily due to the change in subscriber mix following recent acquisitions in Germany and the acquisitions of entities in smaller countries, notably Belgium, Portugal and Spain Spain, Span. España (āspä`nyä), officially Kingdom of Spain, constitutional monarchy (2005 est. pop. 40,341,000), 194,884 sq mi (504,750 sq km), including the Balearic and Canary islands, SW Europe. , which are in the early stages of development. Selling, general and administrative expenses increased by $14.4 million to $24.4 million in the second quarter of 1999 from the corresponding period of 1998, primarily as a result of the development of the Company's ESMR networks in the United Kingdom and France and business acquisitions. Depreciation and amortization increased by $10.2 million to $18.1 million in the second quarter of 1999 from the corresponding period of 1998, primarily as a result of business acquisitions and the accelerated depreciation Accelerated Depreciation Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years of the life of an asset. Notes: The straight-line depreciation method spreads the cost evenly over the life of an asset. and amortization of its SMR assets in the United Kingdom and France. The Company reviews the SMR asset lives by country and makes adjustment to depreciation, shortening the asset lives to the estimated date of closure of the SMR networks. This adjustment is made only after the issue of an ESMR license, when infrastructure agreements have been signed and the Company has committed funding for the development of an ESMR network. Operating loss before depreciation and amortization was $12.3 million in second quarter of 1999 compared to an operating profit before depreciation and amortization of $1.5 million in the corresponding period of 1998. As a result of the increased acquisition activity and the build-out of the United Kingdom and French ESMR networks and the initial development of the German ESMR network, the total operating loss in the second quarter of 1999 was $30.4 million compared to a loss of $6.4 million in the corresponding period of 1998. Net loss in the second quarter of 1999 was $36.4 million compared to a net loss of $7.4 million in the corresponding period of 1998. The increased loss is mainly a result of the build-out of the United Kingdom and French ESMR networks and the initial development of the German ESMR network, the increased amortization expense related to business acquisitions, and interest on Senior Discount Notes. -- Six months ended June 30, 1999 compared to six months ended June 30, 1998 As a result mainly of business acquisitions, revenues reached $47.0 million in the first six months of 1999 compared to $28.1 million in the corresponding period of 1998. Subscribers increased to 290,100 at June 30, 1999 from 180,600 at June 30, 1998, primarily as a result of the acquisitions of the SMR operations of Chekker and Quickfunk in Germany, the acquisition of the SMR operations of Bouygues in France and the acquisition of the SMR operations of Protocall Ventures. The Company's ESMR networks in the United Kingdom, France and Germany are still in the pre-operating stage and as such did not generate revenues in 1998 or 1999. Gross margins before depreciation and amortization were 53.7 percent in the first six months of 1999 compared to 67.1 percent in the corresponding period of 1998. The decrease is mainly attributable to increased analog subscriber churn and reduced revenue per analog subscriber primarily due to the change in subscriber mix following recent acquisitions in Germany and the acquisitions of entities in smaller countries, notably Belgium, Portugal and Spain, which are in the early stages of development. Selling, general and administrative expenses increased by $23.5 million to $41.1 million in the first six months of 1999 from the corresponding period of 1998, primarily as a result of the development of the Company's ESMR networks in the United Kingdom and France and business acquisitions. Depreciation and amortization increased by $23.4 million to $36.9 million in the first six months of 1999 from the corresponding period of 1998, primarily as a result of business acquisitions. Operating loss before depreciation and amortization was $15.9 million in the first six months of 1999 compared to an operating profit before depreciation and amortization of $1.3 million in the corresponding period of 1998. As a result of the increased acquisition activity and the build-out of the United Kingdom and French ESMR networks and the initial development of the German ESMR network, the total operating loss in the first six months of 1999 was $52.7 million compared to a loss of $12.2 million in the corresponding period of 1998. The net loss in the first six months of 1999 was $58.8 million compared to a net loss of $13.8 million in the corresponding period of 1998. The increased loss is mainly a result of the increased amortization expense related to business acquisitions, interest on Senior Discount Notes, the build-out of the United Kingdom and French ESMR networks and the initial development of the German ESMR network. Liquidity and Capital Resources Cash used in operating activities in the second quarter of 1999 is primarily attributable to operating loss before depreciation and amortization of $12.3 million, realized exchange losses of $4.4 million and movements in working capital of $11 million. Cash used in operating activities in the first six months of 1999 is primarily attributable to operating loss before depreciation and amortization of $15.9 million, realized exchange losses of $15.9 million and movements in working capital of $12 million. Cash used in investing activities is primarily attributable to acquisitions of tangible Possessing a physical form that can be touched or felt. Tangible refers to that which can be seen, weighed, measured, or apprehended by the senses. A tangible object is something that is real and substantial. An automobile is an example of tangible Personal Property. fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → of $56.2 million in the second quarter of 1999 and attributable to acquisitions of tangible fixed assets of $105.7 million and investments of $36.9 million in the first six months of 1999. In the first six months of 1999, the Company's capital expenditures attributable to the build-out of its ESMR network in the United Kingdom totalled $80.2 million, with the difference being mostly attributable to the build-out of the French ESMR network. Cash provided by financing activities primarily represents the net proceeds of approximately $202.8 million from the issue of A ordinary shares, the net proceeds of approximately $143.6 million from the issue of Senior Discount Notes and drawings under the United Kingdom bank credit facility of approximately $32.2 million. At June 30, 1999, the Company held cash and cash equivalents of $415.7 million compared to $301.2 million at June 30, 1998, and $58.1 million at March 31, 1999. The increase primarily represents the net proceeds from the issue of A ordinary shares, the net proceeds from the issue of Senior Discount Notes, drawings under the United Kingdom bank credit facility and the Company's capital expenditure attributable to the build-out of its ESMR networks in the United Kingdom and France. On November November: see month. 5, 1998, the Company completed a 215 million sterling pounds (approximately $342 million) senior bank financing which, in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with $252 million of capital contributions from the Company to its United Kingdom operations, fully funds the build-out of its ESMR network in the United Kingdom. The Company made an initial draw down of approximately $32.2 million. The Company currently anticipates making its second drawdown Drawdown The peak to trough decline during a specific record period of an investment or fund. It is usually quoted as the percentage between the peak to the trough. Notes: under the facility in the third quarter of 1999. On April 28, 1999, the Company completed a private placement of 252,429 of its A ordinary shares for gross proceeds of $210 million. The shares were placed with several institutional investors, from Europe, the United States and Canada. A subsidiary of TIW invested $10 million as part of this offering. The A ordinary shares are convertible into ordinary shares of the Company currently representing approximately 19.2 percent of the total shares on a fully-diluted basis. On May 11, 1999, the Company completed an offering of $295 million 14 percent Senior Discount Notes due in 2009. This offering generated total net proceeds of approximately $143.6 million. Interest payments will commence in 2004. On June 28, 1999, the Company completed a Euro 95 million (approximately $100 million) senior bank financing for the deployment of its ESMR network in France. The facility, which matures on March 31, 2000, can be extended to June 30, 2000. The availability of funds and such extension are subject to fulfilment of certain conditions precedent. As part of their strategic relationship for the deployment of TETRA in Europe, Motorola has assisted the Company in obtaining up to $567 million in financing commitments. The Company obtained a vendor facilitated DM800 million (approximately $442 million) seven-year debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay commitment to fund the rollout of the Company's wireless network in Germany and associated working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. . In addition, Motorola is providing up to $125 million in additional financing to fund the Company's investment in Germany. The various financing commitments are subject to the completion of certain conditions including the negotiation and execution of definitive agreements and receipt of certain approvals. Total assets amounted to $1,051.2 million with total indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. of $579.5 million. Dolphin Telecom plc The Company is a 77.8 percent owned subsidiary of Telesystem International Wireless Inc. ("TIW"). TIW is a global wireless operator. It develops, acquires, owns and operates wireless telecommunications networks A telecommunications network is a of telecommunications links and nodes arranged so that messages may be passed from one part of the network to another over multiple links and through various nodes. throughout the world. TIW provides digital cellular services in Romania In 2003 services constituted 55% of gross domestic product (GDP), and the sector employed 51.3% of the workforce. The subcomponents of services are financial, renting, and business activities (20.5%); trade, hotels and restaurants, and transport (18%); and other service activities (21.7%). , 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. , India India, officially Republic of India, republic (2005 est pop. 1,080,264,000), 1,261,810 sq mi (3,268,090 sq km), S Asia. The second most populous country in the world, it is also sometimes called Bharat, its ancient name. India's land frontier (c. and China as well as paging services in Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. and the Netherlands Netherlands (nĕth`ərləndz), Du. Nederland or Koninkrijk der Nederlanden, officially Kingdom of the Netherlands, constitutional monarchy (2005 est. pop. 16,407,000), 15,963 sq mi (41,344 sq km), NW Europe. . TIW, through the Company, also provides specialized mobile radio See SMR. (SMR) services in the United Kingdom, France, Germany, Belgium, Portugal and Spain. -0-
DOLPHIN TELECOM PLC
SELECTED CONSOLIDATED FINANCIAL AND OPERATING DATA (UNAUDITED)
-----------------------------------------------------------------
Three months Six months
ended June 30, ended June 30,
1999 1998 1999 1998
-----------------------------------------------------------------
STATEMENT OF LOSS
AND CASH FLOWS DATA:
(in thousands of US dollars) $ $ $ $
Revenues 24,336 16,196 46,982 28,103
Operating loss before
depreciation and
amortization (12,327) 1,515 (15,868) 1,276
Net loss (36,445) (7,437) (58,804) (13,793)
Acquisitions of tangible
fixed assets 56,174 24,113 105,685 28,367
As of June 30, As of December 31,
1999 1998
-----------------------------------------------------------------
BALANCE SHEET DATA:
(in thousands of US dollars) $ $
Cash and cash equivalents 415,696 170,815
Total assets 1,051,208 647,274
Short-term and long-term debt 579,495 363,140
Shareholders' equity 284,108 127,137
OVERVIEW OF OPERATIONS: As of June 30, 1999
-----------------------------------------------------------------
Licensed Start-up
POPs Date of Total
(in millions) Technology Operations Subscribers
---------------------------------------------------
United Kingdom 59.2 ESMR - -
United Kingdom 59.2 SMR 1992(2) 74,300
France 58.9 ESMR - -
France 57.1 SMR 1990(2) 41,600
Germany 70.0 SMR/ESMR(3) 1993 156,400
Belgium 10.2 ESMR - -
Belgium 10.2 SMR 1996(4) 2,400
Portugal 9.9 ESMR - -
Portugal 9.9 SMR 1994(4) 9,900
Spain 14.5 SMR 1995 5,500
-------------- -----------
Total SMR 220.9 290,100
-------------- -----------
-------------- -----------
Total ESMR 208.2
--------------
--------------
Total POPs(5) 222.7
--------------
--------------
OVERVIEW OF OPERATIONS: As of June 30, 1999
-----------------------------------------------------------------
Dolphin Dolphin Dolphin
Telecom Telecom Telecom
Equity(1) Equity POPs Equity
(percent) (in millions) Subscribers
------------------------------------------
United Kingdom 100.0 59.2 -
United Kingdom 100.0 59.2 74,300
France 99.2 58.4 -
France 99.2 56.6 41,300
Germany 100.0 70.0 156,400
Belgium 93.8 9.6 -
Belgium 93.8 9.6 2,300
Portugal 65.0 6.4 -
Portugal 65.0 6.4 6,400
Spain 100.0 14.5 5,500
-----------------------------
Total SMR 216.3 286,200
-----------------------------
-----------------------------
Total ESMR 203.6
---------------
---------------
Total POPs (5) 218.1
---------------
---------------
(1) Figures represent the percentage of the Company's direct and
indirect interest in its operations. The Company and its partners
have options which, if exercised, could have an impact on certain
of those percentages.
(2) Dolphin Telecom's initial SMR investments in the United Kingdom
and France were made in 1994 and 1992, respectively.
(3) In Germany, the Company operates within the ESMR frequency band
and its license authorizes both SMR and ESMR networks.
(4) Dolphin Telecom's initial SMR investments in Portugal and Belgium
were made in July 1998.
(5) Total POPs represents the Company's ESMR POPs for the United
Kingdom, France, Germany, Belgium and Portugal and SMR POPs for
Spain.
DOLPHIN TELECOM PLC
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands of US dollars)
-----------------------------------------------------------------
Prepared Using International Accounting Standards
June 30, 1999 December 31, 1998
$ $
-----------------------------------------------------------------
ASSETS
Current assets
Cash and cash equivalents 415,696 170,815
Restricted cash 13,189 8,600
Trade debtors 12,943 9,693
Inventories 2,623 2,044
Amounts due from related parties - -
Prepaid expenses and other
current assets 26,680 16,980
-----------------------------------------------------------------
Total current assets 471,131 208,132
-----------------------------------------------------------------
Restricted cash 7,029 14,328
Investments and advances - -
Tangible fixed assets 282,195 180,966
Intangible assets 258,314 220,486
Other non-current assets 32,539 23,362
-----------------------------------------------------------------
1,051,208 647,274
-----------------------------------------------------------------
-----------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term loan facilities 2 5,033
Trade creditors
and accrued liabilities 107,962 90,052
Deferred revenues 3,507 5,235
Amounts due to related parties 1,361 246
Current portion of long-term debt 28,384 6,437
Deferred taxation 10,565 5,768
-----------------------------------------------------------------
Total current liabilities 151,781 112,771
-----------------------------------------------------------------
Long-term debt 551,109 351,670
Deferred taxation 61,552 52,918
Minority interests 2,658 2,778
-----------------------------------------------------------------
Shareholders' equity
Share capital 2,076 1,609
Additional paid in capital 432,789 202,567
Retained earnings (143,324) (84,520)
Cumulative translation adjustment (7,433) 7,481
-----------------------------------------------------------------
Total shareholders' equity 284,108 127,137
-----------------------------------------------------------------
1,051,208 647,274
-----------------------------------------------------------------
-----------------------------------------------------------------
DOLPHIN TELECOM PLC
CONSOLIDATED STATEMENTS OF LOSS (UNAUDITED)
(in thousands of US dollars)
----------------------------------------------------------------
Prepared Using International Accounting Standards
Three months ended Six months ended
June 30, June 30,
1999 1998 1999 1998
$ $ $ $
----------------------------------------------------------------
Revenues
Services 23,270 15,076 44,695 25,850
Equipment 1,066 1,120 2,287 2,253
----------------------------------------------------------------
24,336 16,196 46,982 28,103
Cost of services 11,475 3,914 20,099 8,016
Cost of equipment 814 769 1,632 1,236
Selling, general and
administrative expenses 24,374 9,998 41,119 17,575
Depreciation and
Amortization 18,106 7,913 36,864 13,488
----------------------------------------------------------------
Operating loss (30,433) (6,398) (52,732) (12,212)
Interest expense (8,809) (5,682) (17,926) (8,059)
Interest income 2,288 1,693 3,665 2,110
Foreign exchange
gain (loss) (13) 66 5,233 66
----------------------------------------------------------------
Loss before income taxes
and minority interests (36,967) (10,321) (61,760) (18,095)
Income taxes 335 1,550 2,816 2,387
----------------------------------------------------------------
Loss before minority
Interests (36,632) (8,771) (58,944) (15,708)
Minority interests 187 1,334 140 1,915
----------------------------------------------------------------
Net loss (36,445) (7,437) (58,804) (13,793)
----------------------------------------------------------------
----------------------------------------------------------------
DOLPHIN TELECOM PLC
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands of US dollars)
----------------------------------------------------------------
Prepared Using International Accounting Standards
Three months ended Six months ended
June 30, June 30,
1999 1998 1999 1998
$ $ $ $
----------------------------------------------------------------
OPERATING ACTIVITIES
Net loss (36,445) (7,437) (58,804) (13,793)
Depreciation and
Amortization 18,106 7,913 36,864 13,488
Accreted interest on
long-term debt 12,547 3,007 21,727 3,007
Capitalized interest (5,324) - (7,773) -
Minority interests (187) (1,334) (140) (1,915)
Income taxes (335) (1,550) (2,816) (2,387)
Unrealized foreign
exchange gain (4,417) - (21,179) -
Changes in operating
assets and liabilities 10,998 2,720 12,020 23,840
----------------------------------------------------------------
Cash provided by (used in)
operating activities (5,057) 3,319 (20,101) 22,240
----------------------------------------------------------------
INVESTING ACTIVITIES
Acquisitions of tangible
fixed assets (56,174) (24,113) (105,685) (28,367)
Investments 3,244 (41,068) (36,930) (113,172)
Decrease (increase) in
other non-current assets(2,079) 1,438 (2,064) (1,232)
----------------------------------------------------------------
Cash used in investing
Activities (55,009) (63,743) (144,679) (142,771)
----------------------------------------------------------------
FINANCING ACTIVITIES
Increase in share
capital/invested
capital 202,754 118,948 202,754 123,143
Issuance of Senior
Discount Notes 150,131 300,506 150,131 300,506
Financing costs (9,352) (10,515) (9,352) (10,515)
Changes in long-term
Debt 74,207 (77,091) 68,299 4,699
----------------------------------------------------------------
Cash provided by (used in)
financing activities 417,740 331,848 411,832 417,833
----------------------------------------------------------------
Effect of exchange rate
changes on cash (55) - (2,171) -
----------------------------------------------------------------
Increase in cash and cash
equivalents for
the period 357,619 271,424 244,881 297,302
Cash and cash equivalents,
beginning of period 58,077 29,805 170,815 3,927
----------------------------------------------------------------
Cash and cash equivalents,
end of period 415,696 301,229 415,696 301,229
----------------------------------------------------------------
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