SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE MONTH OF OCTOBER
COMMISSION FILE NUMBER: 001-33750
MAXCOM TELECOMUNICACIONES, S.A.B. DE C.V.
(Exact name of Registrant as specified in its Charter)
MAXCOM TELECOMMUNICATIONS, INC.
(Translation of Registrant’s name into English)
GUILLERMO GONZALEZ CAMARENA NO. 2000
COLONIA CENTRO DE CIUDAD DE SANTA FE
MEXICO, DF 01210
(Address of Registrant’s principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F þ Form 40-F o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101 (b) (1):
Yes o No þ
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101 (b) (7):
Yes o No þ
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes o No þ
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.
| MAXCOM TELECOMUNICACIONES, S.A. DE C.V. |
||||
| By: | /s/ Gonzalo Alarcon | |||
| Name: | Gonzalo Alarcon | |||
| Date: October 31, 2007 | Title: | General Counsel | ||
3Q07 EARNINGS REPORT |
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October 31, 2007 |
MAXCOM TELECOMUNICACIONES THIRD QUARTER 2007
UNAUDITED RESULTS
UNAUDITED RESULTS
| • | 3Q07 revenues of Ps$607.6 million increased 28% from 3Q06 and 7% from 2Q07 | |
| • | Adjusted EBITDA1 was Ps$181.0 million in the quarter, 53% more than 3Q06 and 11% over 2Q07 | |
| • | EBITDA of Ps$176.8 million increased 55% from 3Q06 and 11% from 2Q07 | |
| • | Lines in service at 321,003 increased 26% from 3Q06 and 7% from 2Q07 | |
| • | Total number of customers (voice, data and TV) was 228,605, 23% more than 3Q06 and 10% over 2Q07 |
MEXICO
CITY. October 31, 2007. Maxcom Telecomunicaciones S.A.B. de C.V.,
(NYSE: MXT; BMV: MAXCOM CPO) today announced its third quarter
unaudited results.
LINES:
The number of voice lines in service at the end of 3Q07 increased 26% to 321,003 lines, from
255,174 lines at the end of 3Q06, and 7% when compared to 299,744 lines in service at the end of
2Q07.
During 3Q07, 29,306 new voice lines were installed, 3% above the 28,551 lines installed during
3Q06. When compared to 2Q07, the number of installations decreased 3% from 30,343 lines.
During the quarter, the monthly churn rate for voice lines was 1.7%, above the 1.6% monthly average
churn experienced during 3Q06 and 2Q07.
Data equivalent lines (at 64Kbps) increased 226% to 125,960 at the end of 3Q07 from 38,640 at the
end of 3Q06, and 105% when compared to 61,586 equivalent lines at the end of 2Q07. The increase was
mainly driven by installations to residential customers.
During the third quarter, we launched our paid TV service in the city of Puebla. As of September
30, 2007, we had already installed 3,340 TV sets for 2,755 subscribers.
CUSTOMERS:
The number of total customers (voice, data and TV) grew 23% to 228,605 at the end of 3Q07, from
185,979 at the end of 3Q06, and 10% when compared to 207,309 customers at the end of 2Q07.
REVENUES:
Revenues during 3Q07 increased 28% to Ps$607.6 million, from Ps$476.2 million reported in 3Q06.
Voice revenues in the quarter increased 33% to Ps$478.2 million, from Ps$359.0 million during 3Q06,
and were primarily driven by a 26% increase in voice lines and a higher average revenue per line
(ARPU). The ARPU increase was mainly attributed to an increase in public telephony services. Data
revenues in 3Q07 were Ps$31.4 million, a 66% increase when compared to Ps$18.9 million in 3Q06,
driven by the increase in data equivalent lines. Wholesale revenues in 3Q07 were even at Ps$98.0
million, when compared to Ps$98.2 million recorded in 3Q06.
3Q07 revenues represented a 7% increase from the Ps$569.9 million reported in 2Q07. Voice revenues
in 3Q07 increased 8% from Ps$442.6 million in 2Q07, while data revenues increased to Ps$31.4
million, and were 23% higher than those reported in 2Q07 at Ps$25.5 million. During 3Q07, revenues
from Wholesale customers decreased 4% from Ps$101.7 million recorded in 2Q07.
| 1 | We define Adjusted EBITDA as net income (loss) excluding depreciation and amortization, total integral cost of financing, other (income) expenses, special items, tax and stock option plan expense. Adjusted EBITDA has material limitations that impair its value as a measure of a company’s overall profitability since it does not address certain ongoing costs of our business that could significantly affect profitability such as financial expenses and income taxes, depreciation or capital expenditures and associated charges. Adjusted EBITDA is not a recognized financial measure under Mexican GAAP or U.S. GAAP and do not purport to be an alternative to net income as a measure of operating performance or to cash flows from operating activity as a measure of liquidity. We believe Adjusted EBITDA can be useful to facilitate comparisons of operating performance between periods and with other companies because it excludes the effect of stock option plan expense, which is a non-cash compensation item. You should review EBITDA and Adjusted EBITDA, along with consolidated financial statements, when trying to understand our operating performance. However, companies define EBITDA and Adjusted EBITDA in different ways and caution must be used in comparing these measurements to other companies. |
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3Q07 EARNINGS REPORT |
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October 31, 2007 |
COST OF NETWORK OPERATIONS:
Cost of Network Operations in 3Q07 was Ps$249.7 million, 27% above the cost of Ps$196.0 million in
3Q06. With outbound traffic decreasing 15%, the cost per minute increased as a result of higher
operating costs in our public phones due to a larger number of public phones in service, along with
higher long distance termination charges and higher minutes to cellular phones.
The Ps$53.7 million increase in the Cost of Network Operations was generated by: (i) Ps$48.8
million, or 30% increase in network operating services, as a result of Ps$22.3 million higher
operating costs related to public telephones, Ps$15.7 million higher calling party pays
interconnection fees, Ps$5.4 million higher leases of circuits and ports, Ps$4.3 million higher
long distance interconnection fees, Ps$1.4 million higher cost for paid TV operations, and Ps$0.2
higher Internet services costs, partially offset by Ps$0.5 million decrease in other services
costs, such as CATV and cellular operations; (ii) Ps$4.2 million, or 14% increase in technical
expenses; and, (iii) Ps$0.7 million, or 16%, increase in installation expenses and cost of
disconnected lines.
Cost of Network Operations increased 3% on a quarter-over-quarter basis when compared to Ps$242.2
million in 2Q07. The Ps$7.5 million increase in Cost of Network Operations was generated by: (i)
Ps$6.5 million, or 3% increase in Network operating services, as a result of Ps$2.9 million higher
leases of circuits and ports, Ps$2.0 million higher cost of operation of public telephones, Ps$1.5
million higher calling party pays interconnection fees, Ps$1.4 million higher cost for paid TV
operations, and Ps$0.8 million higher Internet services costs; partially offset by Ps$1.1 million
lower long distance interconnection fees, and Ps$1.0 million lower other services cost, such as
CATV and cellular operations; (ii) Ps$1.3 million, or 4%, increase in technical expenses; and,
(iii) Ps$0.3 million, or 5%, decrease in installation expenses and cost of disconnected lines.
SG&A:
SG&A expenses were Ps$181.2 million in 3Q07, 9% above Ps$165.9 million in 3Q06. The Ps$15.3 million
increase was mainly driven by: (i) higher salaries, wages and benefits of Ps$14.3 million as a
result of larger headcount; (ii) Ps$7.2 million higher general and corporate expenses; (iii) Ps$1.3
million higher sales commissions; and, (iv) Ps$0.1 million higher compensation charges related to
stock options plans. These increases were partially offset by: (i) lower external advisors expenses
of Ps$4.0 million; (ii) Ps$2.4 million lower advertising and promotion expenses; (iii) lower bad
debt reserve of Ps$0.9 million; and, (iv) lower maintenance expenses of Ps$0.3 million.
When
compared to 2Q07, SG&A expenses in 3Q07 increased 8% from Ps$167.9 million. The Ps$13.2
million increase was generated by: (i) higher salaries, wages and benefits of Ps$12.6 million; (ii)
higher general and corporate expenses of Ps$3.1 million; (iii) Ps$1.4 million higher external
advisors expense; (iv) Ps$0.9 million higher sales commissions; and, (v) higher compensation
charges related to stock options plans of Ps$0.7 million. These increases were partially offset by:
(i) Ps$3.5 million decline in advertising and promotion expenses; (ii) lower bad debt reserve of
Ps$1.3 million; and, (iii) lower maintenance expenses of Ps$0.7 million.
SG&A expenses in 3Q07, before the effect of the non-cash stock option compensation charge, were
Ps$177.0 million, 9% above Ps$161.8 million in 3Q06, and 5% above Ps$167.9 million in 2Q07.
Adjusted EBITDA:
Adjusted EBITDA for 3Q07 was Ps$181.0 million, 53% higher than Ps$118.4 million in 3Q06, and 11%
higher than Ps$163.3 million in 2Q07. Adjusted EBITDA as a percentage of revenues was 30% for 3Q07,
five percentage points higher than the 25% achieved in 3Q06 and one percentage point higher than
the 29% in 2Q07.
EBITDA:
EBITDA for 3Q07 was Ps$176.8 million, 55% higher than Ps$114.3 million in 3Q06, and 11% higher than
Ps$159.8 million in 2Q07. EBITDA as a percentage of revenues was 29% in 3Q07, five percentage
points higher than 24% in 3Q06 and one percentage point higher than 28% in 2Q07.
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3Q07 EARNINGS REPORT |
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October 31, 2007 |
OPERATING INCOME:
Operating income for 3Q07 was Ps$72.4 million, 215% higher than Ps$23.0 million in 3Q06, and 31%
higher than Ps$55.2 million in 2Q07.
NET INCOME:
Net income for 3Q07 was negative Ps$7.6 million, which compared favorably to negative Ps$27.4
million in 3Q06. Net income during 2Q07 was even at Ps$0.2 million. The main drivers for the
negative net income of this reporting quarter were non-cash items related to a loss in net monetary
position and deferred taxes in the amount of Ps$32.1 million and Ps$38.8 million, respectively.
CAPITAL EXPENDITURES:
Capital expenditures in 3Q07 totaled Ps$252.1 million, 53% above Ps$165.1 million recorded in 3Q06,
and 36% below Ps$394.5 million spent in 2Q07. Year-to-date capital expenditures as of September
2007 were Ps$861.1 million, 48% above Ps$583.0 million invested during the nine-month period ended
September 2006.
CASH POSITION:
Maxcom’s cash position at the end of 3Q07 was Ps$245.8 million in cash and temporary investments,
including Ps$15.0 million in restricted cash, compared to Ps$183.0 million at the end of 3Q06,
which included Ps$11.0 million in restricted cash. Cash and temporary investments at the end of
2Q07 were Ps$157.9 million, including Ps$2.7 million in restricted cash.
FINANCING:
On July 18, 2007, the Company obtained an unsecured credit facility of Ps$70.0 million from IXE
Banco, S.A., which is renewable on a monthly basis. The monthly payable interest rate is estimated
using EIIR plus 2.4 percentage points. This unsecured credit was paid on September 6, 2007.
Proceeds were for working capital.
On August 2, 2007 the Company obtained a long-term credit facility of Ps$107.0 million for 5 years
from Banco Mercantil del Norte, S.A.. The monthly payable interest rate on this facility is
estimated using EIIR plus 2.0 percentage points. Proceeds were used to pay our paid TV
infrastructure.
On September 5, 2007 Maxcom executed a supplemental offering of its debt instruments denominated
“Senior Secured Notes” in compliance with Rule 144A and Regulation S of the Securities Act of 1933,
in the amount of US$25,000,000.00 (twenty five million dollars 00/100 U.S. currency). Proceeds
were used for capital expenditures.
SUBSEQUENT EVENTS:
On October 19, 2007, the Company made its global initial public offering of 14,141,516 American
Depositary Shares (ADSs) in the United States and 19,515,152 Ordinary Participation Certificates
(CPOs) in Mexico (in both cases including the primary and secondary portions as well as the
exercise of the over allotment). Approximately 14% of the ADSs and the CPOs were sold by existing
Maxcom shareholders. Each ADS represents seven CPOs, while each CPO represents three Series “A”
common shares. After giving effect to this offering, the Company has 789,818,829 Series “A” shares
outstanding, and 835,171,473 on a fully diluted basis.
The ADSs,
trading under symbol “MXT” on the New York Stock Exchange (NYSE), were initially priced
at US$17.50 per ADS. The CPOs, trading under symbol “MAXCOM CPO” in the Mexican Stock Exchange
(BMV), were initially priced at Ps$27.10. The over-allotment option was fully exercised for both
the ADSs and CPOs. Maxcom’s initial public offering resulted in gross proceeds of approximately
US$253.8 million.
3 / 6
3Q07 EARNINGS REPORT |
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October 31, 2007 |
Morgan Stanley & Co. Incorporated was the sole book-runner and global coordinator for the initial
public offering, while IXE Casa de Bolsa, S.A. de C.V., IXE Grupo Financiero was the Mexican lead
underwriter for the Mexican tranche of the offering.
# # #
Maxcom Telecomunicaciones, S.A.B. de C.V., headquartered in Mexico City, Mexico, is a
facilities-based telecommunications provider using a “smart-build” approach to deliver last-mile
connectivity to micro, small and medium-sized businesses and residential customers in the Mexican
territory. Maxcom launched commercial operations in May 1999 and is currently offering local, long
distance, data, value-added, CATV and IP-based services on a full basis in greater metropolitan
Mexico City, Puebla, Queretaro and Toluca, and on a selected basis in several cities in Mexico. The
information contained in this press release is the exclusive responsibility of Maxcom
Telecomunicaciones, S.A.B. de C.V. and has not been reviewed by the Mexican National Banking and
Securities Commission (CNBV) or any other authority. The registration of the CPOs described in this
press release before the National Registry of Securities (Registro Nacional de Valores) held by the
CNBV does not imply a certification of the investment quality of the securities or of Maxcom’s
solvency. The ADSs may not be publicly offered or traded in Mexico. The trading of these securities
by an investor will be made under such investor’s own responsibility.
For more information contact:
| Jose-Antonio Solbes Mexico City, Mexico (52 55) 1163 1005 investor.relations@maxcom.com |
Lucia Domville New York City, NY (646) 284-9416 ldomville@hfgcg.com |
This document may include forward-looking statements that involve risks and uncertainties that are
detailed from time to time in the U.S. Securities and Exchange Commission filings of the Company.
Words such as “estimate,” “project,” “plan,” “believe,” “expect,” “anticipate,” “intend,” and
similar expressions may identify such forward-looking statements. The Company wants to caution
readers that any forward-looking statements in this document or made by the company’s management
involves risks and uncertainties that may change based on various important factors not under the
Company’s control. These forward-looking statements represent the Company’s judgment as of the date
of this document. The Company disclaims, however, any intent or obligation to update these
forward-looking statements.
(Financial Statements to follow)
4 / 6
3Q07 EARNINGS REPORT |
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October 31, 2007 |
MAXCOM TELECOMUNICACIONES, S.A. DE C.V.
CONSOLIDATED BALANCE SHEET
In thousands of Mexican pesos (“Ps”) in purchasing power as of September 30, 2007 and thousands of U.S. dollars (“$’’)
CONSOLIDATED BALANCE SHEET
In thousands of Mexican pesos (“Ps”) in purchasing power as of September 30, 2007 and thousands of U.S. dollars (“$’’)
| September 30, 2006 | June 30, 2007 | September 30, 2007 | ||||||||||||||||||||||
| Pesos | US Dollars | Pesos | US Dollars | Pesos | US Dollars | |||||||||||||||||||
ASSETS |
||||||||||||||||||||||||
CURRENT ASSETS: |
||||||||||||||||||||||||
Cash and cash equivalents |
Ps | 171,994 | $ | 15,750 | Ps | 155,191 | $ | 14,211 | Ps | 230,727 | $ | 21,128 | ||||||||||||
Restricted Cash |
— | — | 2,742 | 251 | 15,050 | 1,378 | ||||||||||||||||||
| 171,994 | 15,750 | 157,933 | 14,462 | 245,777 | 22,506 | |||||||||||||||||||
Accounts receivable: |
||||||||||||||||||||||||
Customers, net of allowance |
308,888 | 28,286 | 437,534 | 40,066 | 534,760 | 48,969 | ||||||||||||||||||
Value added tax refundable |
91,875 | 8,413 | 192,414 | 17,620 | 190,890 | 17,480 | ||||||||||||||||||
Other sundry debtors |
33,052 | 3,027 | 62,540 | 5,726 | 45,852 | 4,199 | ||||||||||||||||||
| 433,815 | 39,726 | 692,488 | 63,412 | 771,502 | 70,648 | |||||||||||||||||||
Inventory |
37,893 | 3,470 | 33,364 | 3,055 | 27,839 | 2,549 | ||||||||||||||||||
Prepaid expenses |
81,186 | 7,434 | 54,718 | 5,011 | 53,785 | 4,925 | ||||||||||||||||||
Total current assets |
724,888 | 66,380 | 938,503 | 85,940 | 1,098,903 | 100,628 | ||||||||||||||||||
Restricted Cash Long Term |
11,023 | 1,009 | — | — | — | — | ||||||||||||||||||
Frequency rights, Net |
87,827 | 8,043 | 83,133 | 7,612 | 81,221 | 7,437 | ||||||||||||||||||
Telephone network systems & Equipment, Net |
2,822,937 | 258,504 | 3,607,503 | 330,348 | 3,774,662 | 345,656 | ||||||||||||||||||
Pre-operating expenses, Net |
103,525 | 9,480 | 77,370 | 7,085 | 69,980 | 6,408 | ||||||||||||||||||
Intangible Assets, Net |
315,300 | 28,873 | 322,945 | 29,573 | 325,896 | 29,843 | ||||||||||||||||||
Retirement obligations |
15,378 | 1,408 | 14,746 | 1,350 | 14,522 | 1,330 | ||||||||||||||||||
Deposits |
5,255 | 481 | 5,391 | 494 | 6,421 | 588 | ||||||||||||||||||
Other assets |
12,310 | 1,128 | 13,534 | 1,242 | 20,675 | 1,892 | ||||||||||||||||||
Total assets |
Ps | 4,098,443 | $ | 375,306 | Ps | 5,063,125 | $ | 463,644 | Ps | 5,392,280 | $ | 493,782 | ||||||||||||
LIABILITIES |
||||||||||||||||||||||||
CURRENT LIABILITIES: |
||||||||||||||||||||||||
Interest Payable |
||||||||||||||||||||||||
Accrued expenses and other accounts payable |
436,010 | 39,928 | 659,124 | 60,357 | 489,558 | 44,830 | ||||||||||||||||||
Bank Financing |
96,311 | 8,819 | — | — | — | — | ||||||||||||||||||
Senior notes, net |
191,507 | 17,537 | — | — | — | — | ||||||||||||||||||
Notes payables |
122,712 | 11,237 | 10,221 | 936 | 8,266 | 757 | ||||||||||||||||||
Commercial paper |
155,883 | 14,275 | — | — | — | — | ||||||||||||||||||
Customers deposits |
1,769 | 162 | 1,499 | 137 | 1,910 | 175 | ||||||||||||||||||
Payroll and other taxes payable |
19,602 | 1,795 | 34,681 | 3,176 | 30,547 | 2,797 | ||||||||||||||||||
Total current liabilities |
1,023,794 | 93,753 | 705,525 | 64,606 | 530,281 | 48,559 | ||||||||||||||||||
LONG-TERM LIABILITIES: |
||||||||||||||||||||||||
Senior notes, net |
442,399 | 40,512 | 1,927,105 | 176,469 | 2,257,742 | 206,747 | ||||||||||||||||||
Bank Financing |
41,299 | 3,782 | — | — | 107,000 | 9,798 | ||||||||||||||||||
Notes payable |
278,949 | 25,544 | 10,912 | 999 | 9,223 | 845 | ||||||||||||||||||
Other accounts payable |
24,537 | 2,247 | 22,600 | 2,070 | 24,357 | 2,230 | ||||||||||||||||||
Deferred taxes |
23,541 | 2,156 | 127,815 | 11,704 | 158,607 | 14,524 | ||||||||||||||||||
Pensions and Postretirement Obligations |
20,762 | 1,901 | 24,130 | 2,210 | 25,166 | 2,305 | ||||||||||||||||||
Other long term liabilities |
— | — | 9,704 | 889 | 52,415 | 4,800 | ||||||||||||||||||
Hedging Valuation |
12,196 | 1,117 | 4,510 | 413 | — | — | ||||||||||||||||||
Total liabilities |
Ps | 1,867,477 | $ | 171,012 | Ps | 2,832,301 | $ | 259,360 | Ps | 3,164,791 | $ | 289,808 | ||||||||||||
SHAREHOLDERS’ EQUITY |
||||||||||||||||||||||||
Capital stock |
3,273,891 | 299,799 | 3,276,031 | 299,995 | 3,276,031 | 299,995 | ||||||||||||||||||
Premium on capital stock |
245,896 | 22,517 | 255,105 | 23,361 | 259,371 | 23,751 | ||||||||||||||||||
Accumulated deficit |
(1,254,443 | ) | (114,873 | ) | (1,283,252 | ) | (117,511 | ) | (1,283,252 | ) | (117,511 | ) | ||||||||||||
Net loss for the period |
(34,378 | ) | (3,149 | ) | (17,060 | ) | (1,561 | ) | (24,661 | ) | (2,261 | ) | ||||||||||||
Total shareholders’ equity (deficit) |
Ps | 2,230,966 | $ | 204,294 | Ps | 2,230,824 | $ | 204,284 | Ps | 2,227,489 | $ | 203,974 | ||||||||||||
Total liabilities and equity |
Ps | 4,098,443 | $ | 375,306 | Ps | 5,063,125 | $ | 463,644 | Ps | 5,392,280 | $ | 493,782 | ||||||||||||
NOTES TO FINANCIAL STATEMENTS:
Financial
statements are reported in period-end pesos as of September 30, 2007 to adjust for the
inter-period effect of inflation.
For readers’ convenience, all Peso amounts were converted to U.S. dollars at the exchange rate of
Ps.10.9203 per US$1.00.
5 / 6
3Q07 EARNINGS REPORT |
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October 31, 2007 |
MAXCOM TELECOMUNICACIONES, S.A. DE C.V.
CONSOLIDATED STATEMENT OF OPERATIONS
2006 AND 2007 QUARTERLY PERIODS
In thousands of Mexican pesos (“Ps”) in purchasing power as of September 30, 2007 and thousands of U.S. dollars (“$’’)
CONSOLIDATED STATEMENT OF OPERATIONS
2006 AND 2007 QUARTERLY PERIODS
In thousands of Mexican pesos (“Ps”) in purchasing power as of September 30, 2007 and thousands of U.S. dollars (“$’’)
| July 1 to | April 1 to | July 1 to | ||||||||||||||||||||||||||||||||||
| September 30, 2006 | June 30, 2007 | September 30, 2007 | ||||||||||||||||||||||||||||||||||
| Pesos | US Dollars | % | Pesos | US Dollars | % | Pesos | US Dollars | % | ||||||||||||||||||||||||||||
Voice |
359,008 | 32,875 | 75 | % | 442,624 | 40,532 | 78 | % | 478,206 | 43,791 | 79 | % | ||||||||||||||||||||||||
Data |
18,938 | 1,735 | 4 | % | 25,538 | 2,338 | 4 | % | 31,412 | 2,877 | 5 | % | ||||||||||||||||||||||||
Wholesale |
98,212 | 8,993 | 21 | % | 101,748 | 9,317 | 18 | % | 98,019 | 8,976 | 16 | % | ||||||||||||||||||||||||
TOTAL REVENUES |
Ps | 476,158 | $ | 43,603 | 100 | % | Ps | 569,910 | $ | 52,187 | 100 | % | Ps | 607,637 | $ | 55,644 | 100 | % | ||||||||||||||||||
Network operating services |
161,248 | 14,766 | 34 | % | 203,523 | 18,637 | 36 | % | 210,041 | 19,234 | 35 | % | ||||||||||||||||||||||||
Technical expenses |
30,618 | 2,804 | 6 | % | 33,595 | 3,077 | 6 | % | 34,856 | 3,191 | 6 | % | ||||||||||||||||||||||||
Installation expenses |
4,113 | 377 | 1 | % | 5,046 | 462 | 1 | % | 4,778 | 438 | 1 | % | ||||||||||||||||||||||||
Cost of Network Operation |
195,979 | 17,947 | 41 | % | 242,164 | 22,176 | 42 | % | 249,675 | 22,863 | 41 | % | ||||||||||||||||||||||||
GROSS PROFIT |
280,179 | 25,656 | 59 | % | 327,746 | 30,011 | 58 | % | 357,962 | 32,781 | 59 | % | ||||||||||||||||||||||||
SG&A |
165,923 | 15,194 | 35 | % | 167,924 | 15,377 | 29 | % | 181,180 | 16,592 | 30 | % | ||||||||||||||||||||||||
EBITDA |
114,256 | 10,462 | 24 | % | 159,822 | 14,634 | 28 | % | 176,782 | 16,189 | 29 | % | ||||||||||||||||||||||||
Depreciation and amortization |
91,260 | 8,357 | 104,637 | 9,581 | 104,410 | 9,562 | ||||||||||||||||||||||||||||||
Operating Income (Loss) |
22,996 | 2,105 | 55,185 | 5,053 | 72,372 | 6,627 | ||||||||||||||||||||||||||||||
Comprehensive (Income) Cost of Financing: |
||||||||||||||||||||||||||||||||||||
*Interest expense |
30,015 | 2,748 | 49,530 | 4,536 | 58,446 | 5,352 | ||||||||||||||||||||||||||||||
**Interest (income) loss, net |
(4,156 | ) | (381 | ) | (10,870 | ) | (996 | ) | (7,325 | ) | (670 | ) | ||||||||||||||||||||||||
Special item |
— | — | — | — | — | — | ||||||||||||||||||||||||||||||
Exchange (income) loss, net |
(8,622 | ) | (789 | ) | (40,862 | ) | (3,742 | ) | 13,251 | 1,214 | ||||||||||||||||||||||||||
Gain on net monetary position |
(10,618 | ) | (972 | ) | 5,953 | 545 | (32,135 | ) | (2,942 | ) | ||||||||||||||||||||||||||
| 6,619 | 606 | 3,751 | 343 | 32,237 | 2,954 | |||||||||||||||||||||||||||||||
Other (income) expense |
(33 | ) | (3 | ) | 3,335 | 305 | 5,553 | 509 | ||||||||||||||||||||||||||||
INCOME (LOSS) BEFORE TAXES |
16,410 | 1,502 | 48,099 | 4,405 | 34,582 | 3,164 | ||||||||||||||||||||||||||||||
Provisions for: |
||||||||||||||||||||||||||||||||||||
Asset Tax |
— | — | 7,626 | 699 | 3,427 | 314 | ||||||||||||||||||||||||||||||
Income Tax & Profit Sharing |
43,785 | 4,010 | 40,257 | 3,686 | 38,756 | 3,550 | ||||||||||||||||||||||||||||||
Total Provisions |
43,785 | 4,010 | 47,883 | 4,385 | 42,183 | 3,864 | ||||||||||||||||||||||||||||||
NET INCOME (LOSS) |
Ps | (27,375 | ) | $ | (2,508 | ) | Ps | 216 | $ | 20 | Ps | (7,601 | ) | $ | (700 | ) | ||||||||||||||||||||
*Adjusted EBITDA |
118,421 | 10,844 | 163,323 | 14,956 | 180,985 | 16,573 | ||||||||||||||||||||||||||||||
% of revenue Adjusted EBITDA |
24.9 | % | 24.9 | % | 28.7 | % | 28.7 | % | 29.8 | % | 29.8 | % | ||||||||||||||||||||||||
NOTES TO FINANCIAL STATEMENTS:
| * | Interest related to Senior Notes, Banks and Vendor Financing | |
| ** | Interest Income net |
Financial
statements are reported in period-end pesos as of September 30, 2007 to adjust for the
inter-period effect of inflation.
For readers’ convenience, all Peso amounts were converted to U.S. dollars at the exchange rate of
Ps.10.9203 per US$1.00.
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